Waking up in the United States. This is the pulse. We are here in london and we have got plenty coming up for you. Minirobots that assemble your table or transform themselves into chairs that you can sit on. Meet the roombots. We begin with our top story. Sterling under pressure this morning after an opinion poll showing that Scottish Independence has gained a lead for the first time this year. Next week, scotland votes on whether to break up the 307yearold union. For more, anna edwards joins me now. This poll is interesting. There are a number of statistical a lot malaise anomalies that we need to think about. It is significant. He described the results of the poll over the weekend as remarkable. Regardless of whether you look at the detail about whether you should or shouldnt include the undecided, if you exclude them, if you look at just who has they willor said vote yes, a 22 point lead for the no campaign has been lost over just one month. That has been replaced by a twopoint deficit. That is a remarkable swing. Especially as you consider that in two thirds of previous referenda, you have seen a swing towards the no campaign. Of this polling is quite great. That said, another poll over the weekend typically have big yes vote polling much more strongly and they havent shown any significant move since june. It could be a case of catching up a little bit to what the other polling companies have been saying. There is a lot of noise in all this. We need to find out more. Too close to call is the line that we got. Ringing ine is now that years of politicians in westminster. It is not what they expected. Both of the camps in action. The leader of the yes campaign saying, they are the underdogs. He doesnt want his supporters to give up the cause. He wants them to. The is likely to spend all of this week showering more details of furthered the evolution plans on scotland. We heard George Osborne talking yesterday that there will be a promise before the vote. These are the powers that scotland will get every get to gocameron doesnt want down in history as a Prime Minister who broke a 307 year union. At the same time, the leader of the labour party, that is the has the ability to try and turn opinion in scotland. Voterss labour party that are supporting the swing. It was only the conservative voters who were not turning towards the yes campaign. In every other part of the polling, you could see a trend towards the yes campaign. All of these groups moving towards the yes campaign. Alsoally, the undecided increasingly likely to turn toward the yes campaign. The market is waking up as well. I cant count the number of pieces of research i read over the weekend that said the markets werent really other to this story. They are now. That seems to be how things have turned out. The pound down 1. 6 last week. That is against the dollar. Since the middle of july, more than 5 has been lost. There are other factors in their. In there many out there Foreign Exchange markets talking about what kind of losses we are going to see on sterling. You look at the stock market as well. Lets bear in mind that the Financial Services industry is a big employer in scotland. Wider, 34 the net work in the broader Business Services arena. There is a great deal of interest from a Financial Markets perspective on what is happening in these financial stocks. Rbs, lloyds and others, Standard Life for example. Are planningt they to move south of the border. We are having all of that information coming out. Thank you very much indeed. Anna edwards on what is happening in scotland. Lets go from one country thinking of breaking away to another which is doing the same thing in a much more aggressive way. Ukraine. A ceasefire is being tested. Both the government and the prorussian rebels reporting truce violations and casualties. Ryan chilcote joins us with the latest developments. The ceasefire is technically still holding. It is. Saysimple thing would be to that this truth is going to fail but that hasnt happened yet. Indications we have from the last 24 hours are that it is looking more and more likely that it will stick. Thatf those indications is alleged violations of the truce over the last 24 hours have fallen since saturday, which had everybody on edge. It looked like the fighting was going to continue. Those alleged violations are more and more isolated now despite the fact that there are reports of shelling and whatnot in all of the three fronts in the east of ukraine. The second Encouraging Development that i see over the last two or three hours is we have heard from the deputy Prime Minister of the selfproclaimed republic of donetsk. This is one of the two regions in the east where there is fighting. He says what the separatists are seeking there is autonomy within ukraine. That is reassuring because the ukrainian president appears to be prepared to give them the kind of autonomy they want. Obviously if they were saying they want to be independent of ukraine altogether, that would be very problematic. The second thing he is saying is that on wednesday there will be an offer all prisoner swap between the separatists and the Ukrainian Government. If that goes forward, that would be the first test and confirmation of the goodwill between the Ukrainian Government and the prorussian separatists and the russians themselves. Lets talk about sanctions. Whether orons as to not they are being effective. There is the possibility, the expectation is those sanctions from the European Union will be agreed today and published tomorrow. They will subject, they will target a number of Russian Companies and their access to European Capital markets. The wall street journal got its drafton a leaked report, document for the European Union on friday night. Ast document said gazprom transneft would be subject to new restrictions as vtb, theberkbank and largest banks in russia. , at the nato conference where i was on friday, the feeling is that the sanctions have been effective. That is what a lot of the leaders were saying. That is why we are at the point where we are, where we have this truce. The feeling was that the sanctions should go forward. They were planned as much as 11 or 12 days ago and should have been introduced on friday. The horsetrading still continued their even though we are talking about an eu deal in south wales. The idea is that if this truce does stick, sanctions could be suspended or rolled back. Ryan, thank you very much indeed. Ryan chilcote covering ukraine. Its appliances business to electrolux for 3. 3 billion in cash. Betcompany is making a big on the connected home and appliances. Hans nichols has the story. To unloadn looking this business for quite some time. Walk me through the implications . First off, electrolux will have a beachhead in north america. 90 of Ge Appliances revenues come from north america. That will allow electrolux to scale. To put more money into r d and put a big investment into how they connect all your home, your appliances. On friday, we spoke with the chief Technology Officer of the electrolux before the deal was announced. Listen to how he envisioned your home being connected. The internet of things also comes into the kitchen. It will help you to get the recipe right, to process through it as a professional chef, and then to maybe go out of the kitchen into the living room to socialize with your friends, and watch through a camera what is happening in your oven, and have that peace of mind and control that you want to have while you are cooking. Ge clearly doesnt want to be in that cooking business. They want to be streamlined as an industrial company. Here is what Jeffrey Immelt had to say about the deal they closed in on the alstom assets earlier this summer. The ipoed part of their american financing company. Electrolux gets a foothold in north america and uni can be better hosts and maybe better cooks. The chances of me being a better cook, very slim. If anything can help achieve that, i will be very happy. Looking forward to this. If it could just do it for me, that would be better. Thanks very much indeed, hans nichols. Lets talk about another deal which will have an application for mr. Jeffrey immelt. Ryanair forced to place 11 billion order for boeing jets. That is according to people familiar with the matter. Kari lundgren is here with the details. It has been a little time coming. Do we know what michael is buying . He is looking at this new macs. Boeing has done a few Different Things to make it a better plane for ryanair. They are looking at adding 11 seats. That would mean pushing the rose two inches closer together, adding an emergency row behind the wings. A few little tweaks for him. We are hearing it is in the magnitude of about 100 planes. That would swell the fleet to about 500 planes by 2019. Significant expansion. ,his comes after an enormous very busy year for ryanair. November last year, they were talking about how they wanted to revamp their image. Michael oleary has been doing significantly less in terms of publicity stunts. They have been rolling out their chief commercial officer instead. They have revamped their website. They are focusing on primary airports. They are really pushing. This would bring the year around. 12 months later alwaysiously he has bought jets when they were super cheap, when he could see a big opportunity to leverage his position. This is a jet that is selling already pretty well. The 320neo from airbus is doing well. Any kind of opportunity here or is this a reflection of the fact that he needs to make this happen . He wanted the max. He said that when he made the order announcement last year. Then he would make that order at the right time. It is quite close on the heels of the last order. Having said that, if you look at the market overall and the capacity and competition in europe, you still have some carriers retrenching. You have easyjet becoming a significant competitor. I think michael sees this as a point you need to push. France,was running air if i was alex cruz, if i was running german wings, this would make me very nervous. I think it makes those executives set up. The other thing that is making them sit up is the appearance of ryanair at these primary airports, places where they never face ryanair competition. Easyjet says, if you look at our network, there isnt that much overlap. That is becoming less and less the case. Lowcost and european discount sector will be looking at this order and scratching their head and seeing where he is putting those planes. Big conference next week in london on this. Kari lundgren. Stay tuned. We are speaking to the ryanair ceo. He is on around 4 00 p. M. London time. Stay tuned for that one. Also, ukraine and prorussian rebels sign a ceasefire deal but it is already in jeopardy. We assess the risks and the rewards. That is coming up next. Welcome back. You are watching the pulse. Lets talk about cable. The british pound versus the United States dollar. Polling has raised significant concerns surrounding whether or not we see scotland making a bid for independence next week. The implications of that are beginning to be understood. The pricing in of it is continuing. You see what is happening with the pound. 1. 6120. We lost a significant amount last week. It looks like that momentum is continuing. Volatility has spiked quite significantly. You are seeing some financials on the ftse suffering today. Those are companies with exposure in scotland. Engineering companies also at risk as well. Keep an eye on this trade. Lets move over to another story. Ukraine. The Nations Capital and and prorussian rebels have supported deaths from more fighting, testing a truce that was reached in belarus. The eu is planning sanctions against russia. Michelle is a Portfolio Manager and joins us now. Good morning to you. The situation we find ourselves, how would you describe it . What is the context we should think about when we look at the Investment Opportunities and what it means for the russian economy, the ukrainian economy and the western economy . It is clearly a very fragile peace. It can be broken at any time. At the moment, i think the market expects mild sanctions to continue. That the see it is whole situation is a lot like georgia. Years beforemany the georgian economy and the whole relationship with russia became seminormal again. That is a very long period of in Financial Market terms. When you look at what that means for the russian economy, what does it mean . You have this low intensity conflict going on. It is likely to continue rolling on. Sanctions are going to stay where they are. That is going to continue to make people nervous. You never know what is going to happen next. Markets hate uncertainty. This is an uncertain situation. We estimate this will take around 1 of russian Economic Growth over the next two to three years. Even these mile sanctions. Mostly through increased cost of capital and capital flight which continues. However, having said that, the weak ruble is helping the exportled russian economy. There is a titfortat there. I think that is probably what is going to save them at the end. If you were a german executive running a company that has exposure into russia, how would you be planning your business over the next few years . You look to russia, you thought it was going to be a big opportunity. What advice would you give them . I think my advice would be, hang in there. This is a big economy. You cannot ignore it. At the end, unemployment has stayed relatively low and the russian consumer story is still there. Sanctions do not escalate from here or the war escalate from here, if the war is kept as a proxy war as it is will, i think the ruble settle around here, which is fine. As long as the sanctions dont include some kind of swift boycott or export ban from russia, especially oil and gas, then you will see the ruble go up and that would be a real disaster. One final question. If you were running a country that has a significant russian would you runw businesses in those countries . Would you expect further aggression from putin into other parts of the european sphere of influence . What looks like the next part of his game . Clearhink there is a differentiation between countries which have joined nato and those which havent. I think the ones which have joined nato should feel safer. The ones which havent, i think the georgian path, just to mention that as an example you do your own bid. You do structural reform. You get your country in order. Then youre a economy is growing 5 , 6 per year versus the russian economy growing close to zero or not at all. Who is going to win in the long term . It is probably going to be georgia. Relationshipin the , export your goods back to russia and so on. I think putin has won the battle, but baby he is not going to win the war if he doesnt include some of these reforms. Thank you very much indeed, we are going to take a break. Coming up, transformers that build your furniture one block at a time. We check out the hightech robots that may soon be taking over your living room. We will look at them in just a moment. Welcome back. Lets talk about todays pulse number. 22 billion. That is how much of scotlands renewable is at risk. It may be halted on green power projects. About howquestions developers will get subsidies. Breaking up the union between england and scotland would force the country to negotiate for electricity. 0 i will see you in a moment. Good morning, you are watching the pulse. I am guy johnson. Chinas trade surplus climbed to record in august. Imports fell for second month in a row. That decline was a little unexpected and may show terms Economic Growth target is 7. 5 could be at risk. Eu banks have attempted to evade rules. This comes after lenders turn to socalled allowances to get around about on bonuses, which are worth more than twice the fix pay level. Former israeli president says the governments appropriation of west bank land for settlements is to matching talks with the palestinians. Bloomberg spoke with him. We have to agree not to continue with old and new settlements while we are negotiating and as the palestinians not to act against us and the united nations, fall andt cannot negotiate at the same time. Quid pro quo situation. Looking pretty nice there, i have to say. Lets talk about the market action. Scotland is the big driver of markets here in london this morning, a referendum over Scottish Independence in the United Kingdom that comes in about 10 days time. One particular poll has taken the lead the yes camp has mp. En the lead over the no ca, [ pricing a little bit of risk and uncertainty. Into the biggest movers lower. Youll see lloyds down by 2. 95 . Big u. K. Lenders, under some in this mornings trading. Looking at stirling, the inevitable happens, the pound went lower. That is how much one pound advise you and dollars, down 1 . Down to 1. 69. On the Monetary Policy of side, if we get a yes vote, the bank of england really goes to hike into that environment. Chief economics say unlikely. Two, politicaler uncertainty. Theres so much, particularly for Prime Minister david cameron. What were underlying is momentum of uncertainty, with the yes camp, which produces a lot of uncertainty. The pound of tripping lower at 1. 6109. It had a hammering last week as low. Thank you for the market story. Breaking news for you. Duke and duchess of cambridge are expecting a second child. The world will be paying attention to this one. A good news story. I have to say, i wouldve be tom keeneuld breaking of his running order because this is big news. If they dont mean dont alex, boy or girl, goingt know what theyre to do. It will save the union. I am sure that is high on the list of priorities. Saving the union is a big priority right now. Well, it is. It is changed quite a lot. Of course, that is great news for the royal family. We make jest of it i have to get my tie straight here. The news over the weekend with to