Successful internationally in my view is a lot of lessons in particular the periphery can learn from that. My friend is brilliant, but wrong in this particular case. Germany is doing the wrong thing in five different ways. Meanwhile, chinas leadership prepares to release its economic reform plan to the world. And on the on earnings front, vodafone unveils a 7 billion pound spending plan as weak trading in europe results in a record fall in core revenue. A warm welcome to you. The its has pledged an Aircraft Carrier and other vessels will go to the island as Recovery Efforts deny in the wake of typhoon haiyan. Well have the latest from manila. Back in london, sothebys is preparing to sell some of the worlds most expensive whines at its auction tomorrow. At 10 45 cet, are chinas debt levels heading to a breaking point . Chinas debt policy could be on the brink of some kind of default. And our innovation cities week continue. Well look at how van could you have ser heading through urban planning. Initial enrollment estimates for the president obamas Health Care Reform program fall far short of expectations. Get the full story at 11 00 cet. But first, the dallas fed president Richard Fisher says the Central Banks conservative easing policy cant go on forever. The fed has been criticized for not being clear enough with its guidance, confusing estimates as to when it might start tapering its massive Bond Buying Program. Speaking to cnbc in australia, fisher admitted the fed hasnt communicated as effectively as it could. From my point of view, from the Federal Reserve bank of dallass point of view, the efficacy declines with each dollar of bonds that we buy. The real issue markets care will is what is the Forward Guidance . What will we do after we stop this program and slow it down and where will we go from there . Markets want to discount information as far forward as possible. And fisher says the fed does have a clear road map of future Monetary Policy. And while hes been critical of janet yellen in the past, he went on to say the perspective new fed chairman will work to create consensus among fomc members. Carolin is at the ubs conference at the Landmark Hotel in london. Carolin, your next guest has been very clear about what he thinks communication policy should be for central bankers. If you say it, youve got to do it. Yes, absolutely. Im now joined by lorenzos executive board member at the ecb. Thank you so much for joining us. Richard fisher there saying that the fed koovk somewhat clearer in terms of its communication. Would you agree with that . It certainly creates some uncertainty. Now the markets are asking themselves, when . How much . What factor will influence . Last week we had a good employment number and the markets reacted negatively, which is really strange. So these i think these delays of the tapering has to be resolved sooner or later. It is clear that the fed to some extent by continuing to buy bonds in the market, by not tapering, it could create asset bubbles and one of the fed members is quite concerned about that over the last couple of months. Do you think that there is the risk of an asset bubble . Well, if the economy recovers and strengthens and you continue to inject liquidity in the economy, that means that youre becoming more and more accommodating. And so the risk of fueling a bubble is certainly there. Asset bubbles are great, arent they, because Equity Investors feel better about themselves, theyve got more wealth, they can spend more. They can burst. When they burst, then everybody gets hurt. So you have to be very careful. I think we have the experience of 2007, 2008. We have the experience of the high tech bubble. So when the bubble bursts, i think you have to be the idea was that Monetary Policy would take care of the bubble bursting. But the experience we are living through shows that there are limits. So its better to avoid bubbles, to prevent bubbles, than to try to deal with them afterwards. So basically, fed should have tapered in september and should be tapering as soon as possible. Thats your view . I shouldnt say what the fed should do, but i think they should be more clear and guide the markets in an explicit way. As the economy recovers, i think its better to do a little bit than uncertainty. Talking about central bank communication, the market was shocked by the ecb rate cut last week. That would indicate that the ecb hasnt communicated as clearly as it should, otherwise the market wouldnt be as surprised. Well, i was shocked that the market was shocked. To some extent, they had said they were going to cut. It was not clear when. Some numbers going in that direction, inflation rates went down, the euro strengthening. The last number on credit was showing a sharp contraction. I think what else did they need to cut rates . I think it was maybe it was not that surprising in the end. There have been some press reports about the ecb. Those press errors says a quarter of the governing council disagree wes mr. Draghi. They were saying hes helping the italian companies, the italian economy. I think my experience also is that the governing council always looks at the european economy. If you look at that type of economy, inflation is far away from 2 . Credit is slowing by 3. 5 . On the euro area average. The euro, which is the currency of everything, is was appreciating and was create ago problem for exports all over europe. So i think its unfair and its not i think it misses totally the point of how the ecb works. I think the ecb looks at europe and europe is not doing well. We have to realize that. The last forecast by the European Commission has slowed down the forecast for all european countries. So i think its it loses the point, i think. Okay. Thats good to get some perspective. Do you think this rate cut will actually help . Well, lets put it in this way. Had they not cut rates, it could have made things worse. So its one contribution. It may not be sufficient because you need to bring inflation up. You need to stop the euro from appreciating. This morning its again appreciating. So i think its another step. I think if the fed starts tapering, there is a rebalancing because the european economy is worse, in a worse situation, so you need more accommodation. And so its i think its you know, some more steps are needed down the road. Quickly want to get your take on italy. It seems as though berlusconi should be pushed out of the politics. Would that be a major catastrophe . Could we see the breakup of the eurozone or does that even matter any more . Im not an sxrert on this. But what italy needs is a government that implements reforms. Thats what we have been missing over the past year. So it doesnt depend on the whole power, but it depends on who has the strength of doing these reforms, which is italy. I want to thank you for your time this morning, lorenzo. And, ross, a little later on in the show, well check in with michael petty from the university. Well talk about chinas reforms and talk to Michael Abraham is the program of cosponsors group at ubs Investment Bank. Back over to you. Thanks for that. Plenty more to come from them. Meanwhile, chinas economic agenda for the next decade is expected to be revealed in the next few hours as a major policy meeting has drawn to a close in beijing. Lets get out to the chinese capital. Eunice joins us from there. Well await the huge anticipation for what we might get. Whats the risk of disappointment . Well, there is a big risk of disappointment because the expectations have been set so high. But whats interesting at this moment is that people are getting very excited about some local media reports. Theyre recorded first as saying beijing is about to change its one child policy. There have been growing expectations that beijing would loosen the policy. There have been more and more reports out in the past couple of minutes and people are talking about how beijing has been wanting to do this just because of the potential impact it could have on the economy. The population here has been aging very fast. Pension systems are weak and many people fall through the cracks. Behind these smiles are very tragic tales. Li ming an and a dozen other women dance every weekend at this park in the chinese city of yohan. They share an experience with chinas one child policy. All of them have lost their only child. We cant talk about it with regular people. Only we can understand each other. A member of lis support group lost her son to bone cancer. She and her husband now fear growing old alone. Translator we are really worried what were going to do when were old, whether i die first or he dies first. What happens to the other person . They have reason to be concerned. Traditionally in China Children take care of their parents when they grow old. So having only one child or no children means less support for the future. Despite the government efforts to improve Pension Systems, a recent survey of chinas elderly found roughly nine out of ten have citizens depend on their families to survive. Nearly one out of four live in poverty on less than 522 a year. And even though over 90 of the Elderly Population is covered by Health Insurance, out of pocket costs remain high while depression is on the rise. All of that means a bleak picture for the generation that built the nations economic boom. Mu and her husband live off factory pensions totalling 6 on 20 a month. We watched him grow up and thought his life and our lives would become better. Translator this is the paying of my whole life. I will never forget my son, never. Eunice yoon, cnbc, beijing. In addition to Pension System reform, people here are hoping to see a whole host of economic reform ones in that communique, ross, which is supposed to be released until the next couple of hours. All sorts of things. Land reforms, bank reforms, liberalization, also things well be looking for, eunice. Thanks for that. Well come back to you shortly, as well, during the program. Plenty more from beijing. Meanwhile, the extent of damage caused by typhoon haiyan is slowly being uncovered. Thousands of people are expected missing or dead with many more homeless. The uss George WashingtonAircraft Carrier has been mobilized to help support the relief efforts. For more, sri is in manila. Whats happening today . Well, ross, the problem here is that its an agonizingly slow process in terms of getting all those essential supplies to the people who need them. So what we are here on the ground in the affected areas is a mounting sense of anger, desperation, and unease. These are very, very desperate people who have been reduced to begging for water and for food from even visiting journalists. So a desperate situation, indeed. What could change is the arrival of the uss George Washington, en route from hong kong, carrying supplies, carrying much needed aerial support in the form of helicopters. Britain is contributing military assets. And that could really change the game. Thats what the relief agencies really need. They need aerial support because, remember, the storm surge that this super typhoon caused generated a tsunami type of episode. That has washed out roads, blocked the roads, knocked down vital infrastructure including communication and power. So that is hampering the relief effort hugely. Let me just give you an example of this. The icrc on november the 6th, dispatch, relief convoy of 11 trucks, she still havent reached the affected areas yet. This morning, i talked to a rep who said the convoy is stuck because of a downed bridge and theyre stuck about 50 kilometers away from the affected area, from tacloban. So theyre tantalizingly close. If the roads were passable, they could get there in a matter of hours. But this is an excruciatingly slow process because of the logicist difficulties involved here, but the arrival of helicopters on board the uss washington and the military asset that the u. S. And britain and a host of other countries can bring to bear could change the game here. Ross. Sri, thank you very much. Thats the latest from the philippines. Right now, were 1 15 into the trading day. The trading day in europe, i should say. Were down 0. 5 on the stoxx europe 600. Right now, the ftse down 0. 5 . Vodafone is weaker. Well get into that fairly shortly. The zet ra dax is off 0. 3 . Cac 40 down 0. 3 and the ftse mib down 0. 5 . Treasury yields because on the rise. Right now, 2. 78 , so heading higher once again. And well keep our eyes on gilt yields, as well. We have the latest inflation print for the uk for the month of on october coming out. The annual rate a nudge down from 2. 5 . The gilt yields are high, heading back towards this 3 mark. Sterling ahead of that, back below 1. 60. Aussie dollar is weaker again. So its a sevenweek high for dollar yen. Once again, ironing up that 1100 level. And euro dollar, steady at 1. 3371. That is where we stand right now here in europe. Lets update the trading day in asia. Not bad. Sixuan has the details for us. Thank you, ross. Asian markets are broadly higher today. The nikkei 225 led the gains as the dollar crossed inched closer to the 100 level. In china markets, mostly higher ahead of the party plenum outcome. We are watching two ipos on the hong ko hong kong borse. And shares jumped 14 in its 127 million ipo. Yet a flat start for hui suang bank. The soft listing comes as many other chinese lenders eyed hong kongs listings, aiming to raise over 10 billion within the next year. Meanwhile, the kospi rebounded by about 1 from a twomonth low thanks to bargain hunting and large caps. And australias asx 200 up by just a thin margin of uncertainty over the fed tapering capped further upside. And due to the same concerns, Indias Sensex now trading lower by 0. 6 . Thats a look out of asian markets. Back to you, ross. Sixuan, thanks for that. Still to come, vodafone has beefed up its Investment Sales as core phones fall. Well see why some think the stock is certainly worth looking at. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Vodafone is pouring 7 billion into its. The British Telecom giant did see a net profit for the first half of the year. Joining us with his thoughts, guy pelli. Good to see you. The chief executive says its a very tough at present, but hes come out and said europes at the bottom. Do you agree with him . My feeling is close to there. Things are tough. Vodafone is struggling more than some of its competitors. Is this the trough for the disappointment with vodafone or not . Its been called a few times before, but i would probably say the full year fy 1314 would probably end up being the low point, whether its the last corporate. But the outlook for fy1415 will be better. I mean, the shares have rallied certainly since august and, clearly, when they did the deal over verizon, that was a big lump of cash for shareholders. It was a great deal, great valuation, great deal. Since then, expectations have been that perhaps at t have been more interested in european telcos and vodafone is one potential play for them if they want to expand into europe and its big in cash again igenerat. There is a question mark, what happens first . Does vodafone buy someone or do they get bought . Do we have any clarity on that . You think if you weave through their network on the next two years, theyre signaling for the large cap m a. Theyre going to invest in their networks, in their major core market, build on their portfolios. There might be the odd asset here and there in subsaharan africa. What is the key for project strength . The key for vodafone is network. Networks matter. That is having very good high Quality Networks that the consumer believes are high quality that the consumer will pay a premium for. And vodafone is trying to accelerate that process, perhaps in some markets from a position of relative weakness. But in general, what its trying to do is get their lead on net worth so upgrade networks as well as have more of them . Yes. Increase the scale and increase the debts so we can do more greater, faster and higher data, Higher Quality voice. Its a bit of both. In the uk, for example, theyve got to widen their networks in london because they cant sustain the traffic that they need to do. In other on network he, its about upgrading speed and capacity. Whos going to benefit from them spending this money . The obvious one is equipment vendors. A large part of project spring is going to go on basic telco equipment, be it capacity and or antennas and stations. That is the vendors name. They have large sustain on Distribution Capabilities and things like that. Where would you compare vodafone as an investment compared to some of the other opportunities in the Telecom Sector . The interesting thing about vodafone is that mobile has been underperforming fixed lines. Clearly, its experienced in the major european markets. Were probably a few quarters, perhaps a year away from getting absolute confidence on that. The incumbent competitors, how winning in the mobile battle because theyre perhaps a little more advanced on networks. Vodafone is interesting longterm. But in the next 18, 24 modz months as he spends the incremental 7 billion is theres hope in in respect they have to spend the money before you see the benefits towards the end of the decade. Youre being asked to buy your way through or hold the position through that period of uncertainty. Guy peddy, thanks for that, head of media at macquarie. Still to come, wine lovers over the world for centuries, what would you pay to get your hands on a single bottle of the 1865 vintage . Find out if the price is right. Well preview southbys finest and rarest wine auction in london, coming up after this. And the headlines from around the globe, dallas fed president