Anna edwards is in westminster. She is out in the cold. This is the chancellors first autumn statement of the new government. What are looking for . , it it is dark and wintry must be time to hear from the government about spending plans. The key question today, is the government going to stick to the goal of a 10 billion pounds Budget Surplus by the end of the parliament, 2020. Illusions, thisll be a budget that is predominantly about austerity. Where will the acts fall axe fall . How much of a burden will be police force have to carry. We have heard about some of the areas they want to spend more in, defense, health. And as you said, we heard more about their plans for housing. For a looking for details backtrack around the tax credit story. It was on that subject, the government faced a defeat in the house of lords recently. Well have to see movement on that particular issue. This is a set piece from the chancellor. Expect metaphorical rabbits to be pulled from hats. Guy who will be here from hear from . Anna we will kickoff the day talking about a challenge of the Banking Sector. Some of that sector is angered by some of the changes made in the emergency budget. We will talk about brexit. We will talk to the federation of Small Businesses and the bcc. Both of the leaders from organizations will be here. The mp will be joining us. He has a permanent position on the front benches of the labour party. Busy morning here. All the way through the day we have the actual announcement at 12 30. Guy thank you. I get to stay nice and cozy here in the studio. Lets get you up to what you need to know. President obama and nato have called for a deescalation of tensions between turkey and russia. That is after the downing of a russian fighter jet. Vladimir putin has called the incident a stab in the back, and warned us consequences of consequences. 12 people were killed when a bus carrying residential guards was struck by a bomb. 17 more were injured in what is thought to have been a suicide attack. An overnight curfew has been been involved imposed. The Second Attack for paris was planned, a skyscraper ducted Business District but he was killed in a police raid on the morning of the 18th. Schools and the subway system and brussels are reopening today. A highy remains on alert. Suggestsies of surveys the chinese economy is showing a muted response to fiscal easing. It was based on Search Engine interest and small and mediumsized businesses deteriorating this month. That is your first word. For more on the stories and others had to bloomberg. Com. Every guy lets find out what is going on with yvonne man. Man it seems like asian investors on a Holding Pattern the last three days. We have not seen too much action or risk off really. We are seeing the haven plays after they mentioned the downing of the rushmore plane. Adding to investor concerns come concerns u. S. Stocks rising to the two week highs. Here in the asiapacific, the yen Holding Strength today. That is having an inverse relationship with stocks. Ending the day 4 10 of a percent down. Kospi down a third of a percent. Yesterday in stocks down 6 10 of a percent. The hang seng pretty much flat. The shanghai reversing course. It is up 6 10 of a percent. We did see some earliest monthly indicators this month. A privatelyg pmi compiled purchasing index as well as a gauge that measures search interests among small and medium businesses, all of those deteriorating. We are still seeing muted response after six this Interest Rates cuts. See thathing you will is green and the asian pacific, oil and gas come up about 1 . We are seeing six following. Crude is rallying overnight. 43 a barrel. As we see, the shanghai metals Futures Exchange is a big rebound. Nickel, copper, rising. Iron ore is still not able to find a floor. It is falling to percent. Guy thank you. Lets get back to the story that seems to be dominating the shooting down of the russian jet by nato member, turkey. Certainly raising international tensions. Is in paris. Elliott, the russians are clearly not happy with turkey. Our cool heads going to prevail . Elliott they seem to be for now russia saying they are ready for a pact with nato to ensure that similar incidents do not occur. Billy thing that will detract from moscows outrage over the downing of one of its fighter jets it says it was over fighterirspace, the two pilots who were then ejected were apparently shot by turkmen in northern syria, these are allies of the turks. Then indeed some reports suggests a russian search and rescue helicopter was taken out by the same people. All of that has angered the russians and Vladimir Putin. Going so far as to accuse the turks is aiding the Islamic State. Fact stated many times the that a large amount of oil and oil products is being transferred to the territory of turkey, from the territory seized by i. S. That is how gangsters are receiving your financial support. Now we receive a stab in the back with strikes against our jets, which are fighting terrorism. Its parts ofey for the russian jet was over turkish airspace. It was backed by the u. S. And nato allies. This is not the first time the russians have breached turkish airspace. It happened twice before. Also shot down a drone. This week, the turkish government courting the Russian Ambassador for addressing down over bombing raids of the turkmen and northern syria, are allies of the turks. Tensions high between turkey and russia. It is not inconceivable to think a similar event quicker. Could occur. You have russian, syrian, american, french jets above syria right now, against various rebel groups. No sense that the russian turkish tension would escalate , but russiansrily are advised not to travel to turkey. Certainly does anger will not go away quickly. Guy how does it come with cate this effort to get everyone on the same page . Thisw does it complicate effort to get everyone on the same page . What does this do in terms of changing the nature of the battle . Elliott it used to be simple, when your enemys enemy was your friend. It is consultative right now. It is complicate it right now. Youd think a russian passenger blamedng taken out and on the Islamic State would be enough to get the russians on board to focus their fire on the Islamic State, but of course Vladimir Putins number one priority is to support alassad. He does not want to be cap telling to be western policy. Cowtowing tong the western policy. It is not impossible that there could be more of a meeting of whichover the issue in greece should be the focus of attacks from the russians and the western allies. Guy thank you. Apologies for the slight technical glitch. The french president is back for a meeting with obama. Did he manage to convince them to launch a coalition against i. S. . Caroline has been tracking the news from paris. What do you see . What we learn . Do we learn . Caroline it is not exactly the Grant Coalition between the u. S. And russia that the president might been hoping for. The u. S. And france have agreed to intensify the airstrikes against the Islamic State and syria. The u. S. Will give more support to the french airstrikes, even though no troops on the ground is planned by either side. They have also agreed to better share the intelligence as to the huge failure of Intelligence Services to prevent the paris attacks on the 13th of november. Barack obama is still reluctant to join military forces with russia, as long as russia supports the regime of alassad. Targetsas the russian are limited to the Islamic State in russia. France had been showing more willingness and flexibility to work with the russians, but barack obama gave the president a polite, no. Have a listen. President obama we have a Global Coalition organized. Russia is the outlier. Refocus theirhey attention on what is the most substantial threat. They serve as a constructive partner. Caroline the french president also wanted to remind everyone alassad as not see part of the future of syria. No Grant Coalition on the table quite yet. I might come with take the meeting that he will have with the russian president , Vladimir Putin in moscow on thursday. Guy thank you very much. Lets get a macro picture of what exactly is happening here. Try to get an understanding of how it affects the markets. John wraith is with us. We will talk about the u. K. In a moment. More broadly, the u. K. , europe, and open economy, how is it being buffeted by what is happening with the geopolitical story. John wraith you have been touching on some of the stories impacting markets in many different ways. There are risks to the outlook a mother is concern about what this means for growth and demand. Generally, all of these instance can have an impact on Commodity Prices and inflation. Expectations for the rate markets as well. Guy you have the smb coming up, you have the fed coming up, you have geophysical tension in the middle east, prioritize that. Key thing isthe the ecb meeting in a week and the fed meeting in three weeks. Highly unusually they are heading in opposite directions and Monetary Policy. The ecb is easing significant further. The fed is starting to take baby steps to tighten. That is almost unprecedented. We need to see how they deliver. What the markets are expecting. That will clearly influence currency levels. It will influence the outlook for their own economies. If you look at the fed for example, expectations about where they go next on policy will have a big impact on the u. S. Dollar. That clearly affects commodity countries, commodities complex generally. It affects inflation. There are a lot of moving parts. An unusual number of moving parts. In terms of the bank of england, that leaves them because currency inflation is weak and with heavy time to sit back and assess how this will play out. View,rom a macro point of does the statements change much . John wraith probably not. There will probably be an announcement that borrowing has gone down a bit. Therefore the repair job is significant. The hill the needs to be climbed is slowly steeper than it seemed in may. There is progress. It is gradual. In a Macro Economic sense, it is not widely to impact on growth. If the government tries to go too fast, there are risks to the outlooks. They need to think carefully and take their time about what measures will have the least impact. That clearly has to be protected into the sickly protected domestically. This is more about politics in theater and where the cuts are calling and the actual overall numbers. Guy plenty more to discuss. Countdown, the politics and theater is there, we will have details of what the challenge of challenged Banking Sector has to say. We will have a short break. Guy 7 19 in brussels, welcome back to countdown. Bank has agreed to pay to escape prosecution in the u. S. Investigation into banks that helped americans evade taxes. I Goldman Sachs employee hired to develop Surveillance Systems to detect illegal behavior has been sued by the ftc for allegedly helping himself to inside information, and trading on it. The u. S. Securities and exchange he exploited his axis to the firm systems to make almost half 1 million. Hp has given eight disappointing forecast a profit in the First Quarter. It was heard by dependence on the lackluster pc market afters running up with its core for technology counterpart. Be 33 act profits to share, falling short of estimates. For more on a story and others please had to bluebird. Com. Bloomberg. Com. Is still withth us. Lets get back to the conversation we were having, which is this relationship between what is happening in the wider world, Commodity Prices coming down, geopolitical tension thrown in, and how the bank of england sees the world. It is watching what is happening in west westminster this loose monetary. What is the bank do . Does the thing do . John wraith it is expected to go on for another five years in a similar magnitude. That is in the bank of englands calculations. They will look at what comes out today and see if they need to change their assessment. As always, theyre looking at one hand the domestic economy and inflation and outlook there, which is currently healthy. It has been steady for a while. The labor market is tight, wages are accelerating. Domestic demand is firm. To have athey have very close eye on what is going on externally. We have touched on this already, there is an uncertain outlook for demand in the eurozone. There have been wild swings. The downside in energy and Commodity Prices in the past year, that has an impact on imported inflation into the u. K. That is also affected by the level of sterling. They have a lot of different parts. Domestically, they are confident about recovery. And all else well equal, it is starting to argue for tighter Monetary Policy to head off the risk of inflation overshooting. Guy where is the miss price in the rate curve . John wraith . It is in the back end of next year. That is partly because the external risk have a lot of tension of the moment. Tightens,market inflation accelerates, the picture could look different in a few months. Guy two and three some of the area. John wraith they need to tread carefully. Guy stay with us, lets get back to westminster. Anna is down on the green this morning, outside houses. Anna, over to you. Many are watching to see what George Osborne announces. We want to talk about the challenged Banking Sector, what are they looking for . Is up this year, were joined with cyrus ardalan. The Corporation Tax surcharge is something the government talks about in the summer. Your sector does not like it. The challenged Banking Sector does not see why you should be subject to this extra tax. Carl riccadonna it is important to know why the bank levy was introduced. That tax is designed to try to compensate for they received from the government. The situation of that is different. Today we have a highly concentrated Banking System and the u. K. Five banks account for 90 of the deposits. Policys a strong imperative to try and encourage the growth of new banks. Anna we know the make wants to see more challenge to banks. This is why this new surcharged is not apply to the smaller and the sector, like yourself. Why is the sector angry . Cyrus ardalan it does have an impact. Its is a strong signal which is negative. We are trying to attract capital to come into the industry to create new challenger banks and help existing ones grow. Secondly, once we receive that we will be taxed. That will reduce our ability to continue to grow. It would not be helped helpful. A very does very little to try to support the governments on policy of encouraging a diverse financial system. Anna it does seem to government wants to find diverse sources of funding. Do you think the government could do more to help the challenger Banking Sector pick before some of those customers are passed on to the alternative lending base space . Cyrus ardalan i think there is a need to diversify. 90 of banking is handled within four or five institutions. When he to have diverse institutions which are more specialized and provide a choice Banking Services to the needs of different sectors. Our bank is exquisitely focused on trying to provide funding to offer numerous. Small and medium sized entre nous is. Entrepreneurs. Other banks try to find sector oriented lending. That is what is lacking. Capital market is just another dimension of trying to stop by to supply diverse funding. Anna you are new, you got your license in the summer. How are you finding this foray into the world of challenger banks . Find thatlan we there are significant opportunities. Caseis a sector in our where customers small and mediumsized entrepreneurs are not well served. Their needs are very specialized. Banksore the large typically provide more standardized products dont meet their specific needs. Anna you used to work for a big bank, is this more exciting . Cyrus ardalan definitely. It is a new venture. Anna thank you for joining us. Guy we will be back with anna later. Largest any worlds manager says the selloff has room to run. Where is rockbottom . See you in a moment. Guy 6 30 in london. Let me get you the bloomberg first word news. Reporter president obama and nato have called for a deescalation of tensions between turkey and russia. That is after the downing of a russian fighter jet, threatened to undermine efforts from a united front against the Islamic State. President putin has called the incident a stab in the bank back. Tunisia has declared a state of emergency after a bus carrying President Shall guards was struck by a bomb in the capital. 17 more were injured in what is thought to have been a suicide attack. An overnight curfew has also been imposed. Prosecutors in paris say the alleged ring letter ringleader of attacks had planned to blow himself up days later. The attack was land in the Business District. He was killed during a police raid on the morning of the 18th. And thee, schools subway system in brussels are reopened today. The capital has been on lock down since saturday over threat of a major terror attack. However, the city remains on the highest level of security alert. The new president of argentina says the Outgoing Administration had left the koppers bear. He will have to take action. He went so far as to tell the local tv that the central bank had been