The percentage might look small, but the amount of money i think is robust enough for allowing us to have a great future. The u. S. Senate prepares for a hearing today on the use of force in syria while the u. N. Endorses a military response. Very good morning to you. Microsoft is buying Nokia Smartphone business for 7. 2 billion. The deal which includes licenses of nokias patents. This is microsofts second biggest acquisition behind the purchase of skype. Microsoft will use some of its near 70 billion in overseas cash to pay for the deal. Nokia was an early supporter of Microsofts Windows phone software for its lumia smartphones. The ceo steve balmer says the Company Started discussing a deal before the noble World Congress in february. Microsoft will bring on several nokia executives including the ceo who joins the company. Hes seen as a possible candidate to replace balmer when he steps down in the next year. The nokia chairman takes over as interim ceo. As far as the stocks are concerned, clearly seening athe b as the big winner here is nokia. Shooting up this morning. This is what theyre doing. Theyre spending 7. 1 billion on nokia stock now up 81 and a lot of analysts have come out and said, they can absolutely nokia could make the phone section work and therefore better to get it off to microsoft. More question marks i think about where this leaves microsoft and where it leaves nokia. Dont forget microsoft ceo steve balmer will join us at in about an hours time. You wont want to miss that. Jon fortt will join us as well as far as that is concerned. Nokia is holding a webcast on the back of the microsoft deal. It is under way as you can see. Well keep you updated with all the news as it happens. Joining us for more analysis, analyst at danske bank on the phone from helsinki. Good morning to you. Got a deal done after apparently many, many discussions. Nokia shareholders now believe having gotten rid of the mobile devices unit they can realize full value from networks. Right. So is that how you see it . What do you think of how this has been structured . So i think that nokia was about to sale their Network Business and then we started to see that they were would be investing into the Network Business in the spring and also that the part two would follow that, they would also complete and then this now happened and this would give nokia more freedom and a possibility with the business that is left. Yeah. So, look, what is the business that is left. They bought out the seiemens joint venture. How do you see that developing . Most importantly a function of the great management. They have really significantly restructure ed this. Much more remains to be done, but clearly the company has been producing a positive change in a number of passporters and i think this could be a case also going forward. What is microsoft getting out of this . Because they were having problems getting other people to take up the lumia phone. Now that all the windows now that they have owned their own phones, it is going to be even less likely, isnt it, that people want to take Windows Phones . I think if you look across the producers in the world, the director made it quite clear it was only one Business Model where they have all of them they have their own hardware. Then software. And the marketplace for applications and so form. So in that i see microsoft following apple. So thats maybe the one aspect. Also i think that microsoft would be now better able to control their own destiny with Windows Phone. Okay. Ilkka, thank you very much. Thanks. Thank you very much, indeed, for joining us. Lets just link into that webcast that is currently on the way. And just hear a little bit more about what theyre saying. Engage in a discussion regarding the transaction. Nokia board and its subcommittees have convened almost 50 times since the beginning of this year. Most of that extra effort has been focused on understanding how to maximize Value Creation for nokia shareholders around our devices business. During the months of exhaustive review and analysis, we gain a clear understanding of the different alternatives and more importantly of the expected economic value to nokia shareholders. With this, we decided on the right path forward. Nokias board of directors decided to enter into a transaction where by nokia will sell substantially all of our devices and services business. And we will license patents to microsoft. The nokia board of directors believes that this transaction creates significant economic value of our shareholders. We expected it will be significantly creative to earnings. It will clearly strengthen our financial position. And it will provide the solid basis for future investment in nokias continuing businesses. For our employees and devices and services, it will transfer to microsoft. They will have a stronger financial backing to be successful in the mobile marketplace. And finland becomes the core base for microsoft and europe. It is worth stressing that as a result of the agreement today, instead of one nokia, there will be two Global Technology companies in finland, both financially stronger, and capable to invest in the future. This can be an important accelerator in the broader finnish economy. For all these reasons we came to the conclusion that this transaction creates more value for nokia and could otherwise be realized. The nokia team has established a third smartphone ecosystem and demonstrated a pattern of growth in lumia devices. The uniques designs and colors, leading Location Based Services and the amazing Imaging Technologies have all differentiated lumia and made it stand out. Nokias mobile phones serve hundreds of millions of customers worldwide. Teams will continue this work creating great lower price mobile products. And this remarkable work of which we are all very proud will gain new momentum as it moves to microsoft. Over the last several months i have come to know one of the microsoft leaders who has shaped microsoft to what it is today. He will be closely following and supporting the would, in Smart Devices and mobile phones and spending much more time here in finland. Id like to ask him to join me on stage. Thanks very much. Thank you. Well, thanks very much. It has been a great honor and privilege for me over the last several months to get to know risto and the other nokia leaders so much better. Were very excited to bring the best mobile device efforts of microsoft and nokia together. Our Windows Phone partnership over the last two and a half years has yielded incredible work. The stunning lummia 1020 is perhaps the best example of that work. Our partnership has also yielded incredible growth. In fact, Windows Phone has grown over 78 in the last year. And is now clearly the number three offering in the marketplace. And sales of nokia Windows Phones have gone from literally 0 two years ago to 7. 4 Million Units in the most recently reported quarter. Nows the time to build on this momentum and accelerate it further. Later today, during our press and investor call, ill join other microsoft leaders and discuss how this transaction will just do that, accelerate phone share. Well discuss how greater success with phones will strengthen the overall opportunity for us, and for our partners to create a family of devices and services for individuals and businesses that empower people around the globe, at home, at work and on the go, for the activities that they value most. In the months ahead, there is a lot of work in planning to do as we await for final approval. First and foremost, we will continue to build and ship phenomenal phones together that delight our shared customers around the globe. Well also begin integration planning worldwide. Microsoft has always valued the diversity that comes from having a major presence in many different countries. Today in europe alone, we have more than 12,000 employees serving customers and doing groundbreaking research and development. We so look forward to welcoming the strong contingent that will join us here in finland and in many other countries around the world. Finland will become the hub and the center for our phone r d and were counting very much on incredible talent of nokia employees to be a key part of driving and propelling microsoft forward. We have meetings scheduled in the next days and months to really review this with the Employee Base and teams here in finland, in san diego, in china, and elsewhere. We have no significant plans to ship to shift around the world where work is done. We want it done where it is done today. That approach has been very successful for us with acquisitions such as skype, which has a large r d footprint in estonia, navision, which is concentrated in denmark, and fast, which remains concentrated in oslo. Were certainly deeply committed to finland. Finland will be, as i said, the center of our phone Device Research and development work. We are beyond excited to have a strong and talented team join us in finland with the expertise and hardware, supply chain management, operations and more. Well be very good corporate citizens here in finland. And we will make new investments. Specifically today, were announcing that we have selected finland as the home of a new data center for microsoft that will serve consumers throughout europe. That will represent an investment of over 250 million in capital and operations over the next few years. Todays announcement is a bold step into the future. For microsoft, it is also a signature event, a signature event in our transformation. We think this is winwin for employees, winwin for shareholders, and winwin for customers of both companies. Through our partnership, we have already accomplished so much. And yet clearly the opportunity ahead is remarkable and im incredibly optimistic about what we can achieve together. Microsoft, Nokia Devices and services, were after it, were energized, and were excited to pursue our common dream of success and innovation in smartphones. Thank you. All right. Youve been listening to Steve Ballmer and nokia chairman from the press conference. Mr. Ballmer saying no significant plans to shift nokia locations, but now is the time to build momentum to accelerate the lumia growth. We will be speaking to Steve Ballmer, microsoft ceo in a first on interview. Thats coming up at 11 00 cet. 45 minutes from now. We got plenty more on our website as well, on the developing story from microsoft and nokia, cnbc. Com. And follow us on twitt twitter cnbcworld. It has become official last night vodafone and Verizon Communications signed the third biggest ever corporate deal. The u. S. Telecoms group taking the 45 of the Verizon Wireless joint venture it didnt already own and paying up for it, 130 billion. Confirmed vodafone will return 71 or 84 billion of the proceeds to shareholders. It will retain 21 , around 30 billion which will be used to fund what is called project spring. A threeyear program will see vodafone accelerate and the rest goes on to the Balance Sheet which will help the net debt still at 39 billion when it last reported on june 30th. Helia has been speaking to the group ceo and started by asking them why they decided to return so much, 70 of the proceeds back to shareholders. Let me say this is a very large deal. And we are fortunate enough that the size of the deal itself allows us to return a large percentage, 31 as you said to shareholders. Even the remaining 31 is large enough to strengthen the company and allow us to accelerate our strategy. The percentage might look small, percentage retained, but the amount of money, i think, is robust enough for allow ing vodafone to have a great future. Youve been criticized in the past for your tax affairs. Youre paying no tax in the uk. Do you think the defenses that the dividends given to shareholders will become a huge boost to the uk economy . We apply the rules, the tax rules and tax laws which are standard in any of the jurisdictions. We pay tax in the u. S. Because our taxes Tax Liability is generated there. We are not going not going to be taxable income in the netherlands because there is tax exemption. If the transaction happened in the uk, there would be no Tax Liability here as well, because there are exactly for many years there have been exactly the same provisions. Important thing is, 54 billion pounds, going back to shareholders. Those who want to sell, they will are to pay their own taxes, but it will be a great benefit to all. And what is the next day or week or month for you in terms of what youre going to do for the company . Well, we have continued to do, as i said, our vodafone 2015 strategy. There is a lot of work to do. We have 4g, which is exciting. We just started here in london and it is an impressive experience. We have more unified communications. We have to integrate our own recent acquisition in germany and we have to push ahead to spring ahead with our strategy. So a lot of work. And what is your response to suggestions that youre now going to be a big target for players like at t . Your shareholders are clearly happy about that, but are you happy . I would not speculate about situations that are not present. I have to remind everybody that we have a great company, a great strategy, and this strategy will generate good returns to shareholders. This company, this brand has Chapter Three of its history to write. All right. Global equities are a little firmer today, strong gains yesterday, emphasis on the u. S. Markets, around 6 to 4 now, advancers outpacing decliners. The ftse up 1. 5 . It is a little firmer today, up nine points, more cautious session today. Well wait to see how the u. S. Gets going after the labor day holiday. Sectors, we should see technology outperforming and, indeed, we have. Thats the nokia impact up 3 at the moment. Banks firmer. Financial resources, basic resources fairly flat at the moment as well. Real estate, autos, a little bit weaker. Show those stocks again, recap some other stocks. Nokia up 37 . Microfost flat in frankfurt. Samsung a little weaker today, down around 1 . So interesting to see how the new microsoft deal sort of if they can eat any of the pie that apple and samsung share. Steve ballmer interview first on cnbc coming up at 11 00 cet, 5 00 eastern. So bond markets, we have seen a tick higher in yields in the u. S. Twoyear yields, up to 4. 2 , the highest since july 2011. Gilt yield s firmer, lower on spain and italy. On the currency markets, euro dollar down to 1. 5 month low, 131. 69 where we stand. Aussie dollar getting a bounce today. Rba fairly neutral. They have cut 25 basis points in the last two years. We seen the aussie down 50 since april, a bounce up higher this morning, more neutral term from the australian central bank. Dollar yen, 99. 64. Sterling dollar firmer, 1. 5569. Sixuan joins us for first time in september with a recap of the asian markets. Hi, sixuan. Thank you, ross. Positive European Manufacturing data boosted asian shares. The nikkei 225 let the gains closing higher, but almost 3 . Latest p my data from china showed more stabilization. Australias asx 200 added a modest. 2 after the rba kept rates steady as expected. Let me show you some top gainers in japan. Power utilities as you can see from the first row here, they surged after japans finance minister says the government will take the lead in dealing with contaminated water leaks at the Fukushima Nuclear power plant. Meanwhile, japanese exporter stocks also broadly higher, this helped by positive global data and also the weaker currency. In china, banking shares let the gains after decent earnings. According to local media, 16 listed Bank Reported a combine ed 13. 5 rise in revenue and income. Smaller players like Minsheng Bank jumped over 2 . A lot happening in the tech space. The stock pulled back 1 . In fact, head of the launch of its much anticipated smart watch, the galaxy gear. After smartphones and tablets, maybe smart watches will become the new battlefield in the tech space. Ross . Sixuan yeah. A lot going on in the Telecom Space as you rightly say. Thanks for that. Catch you a little bit later. Nokia Still Holding that webcast in the back of the microsoft deal. Well bring you any news coming from that press conference. Also, other things on todays show, Institutional Investors jumped back in european equities but tab group joins us to explain why. Could the Retail Market overtake the u. S. . Well be joined by the author of a new report that says it will by the end of the year. As there are fears of possible overbuilding, well be in dallas to study the situation. Also, german election is very close. What economic challenges will face the victor . The chairman of the German Council of experts is in berlin before 11 00 cet. Plenty more to come on worldwide exchange. [ agent smith ] ive Found Software that intrigues me. It appears its an agent of good. [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] Institutional Investors are returning to european equities. Thats from the latest tab group review. Institutional market share rose 19 last year to 21 the first two months of 2013, which reverses the last four years of decline. The Research Firm felt traders are increasingly executing trades in the dark as the result of further european regulation. Dark order volumes risen 10 for first time. Rebecca healy is author of this re