Expected to confirm a ceasefire. The u. S. Readying a fresh round of sanctions on moscow, regardless of any peace plan. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. And youre looking at live pictures from new port in wales where nato leaders are expecting a military flight path which is happening as we speak. There we go. Thats the fly past. Three planes and well, of course, well be back to nato throughout the day today. Continuous updates from hadley gamble who is there. Well be discussing the significance of those ecb Monetary Policy measures yesterday, which are obviously taken by the market as a complete surprise. Absolutely. We saw that huge rally yesterday and quite surprising to see this morning its fizzled out. You have to wornld why. Maybe its because the market realized they did this because the european economy is weak after all. Maybe realism is settling in. The euro weakened significantly yesterday. Today they force that and were going to go out to Steve Sedgwick later to hear more about this and what people on the ground in italy are thinking about that. But for now, we continue to look at the nato leaders. Theres been quite a sign today of the military of nato keen to highlight to potential aggressive what is at their disposal. This morning, we are expected to see that ceasefire take hold. And the rebel leaders yesterday said yes, if there is an agreement, we will try to stick to it. We have reports of ceasefires so many times before. Nerl neither side stuck to it. This morning, weve already been getting reports of shelling. Now, weve been getting a view on the ecbs unprecedented moves from the shores of lake komo with a series of guests. Liquidity, you guy assets and assistance. So, of course, at the enof the day, these assets, there may be a problem. But, you know, we see the u. S. And japan, all the other countries have gone to this avenue. The European Central bank has been the only one not to go for reasons in the past. But now that inflation is at zero percent, why are we waiting . He went as far as he could. And its not just what hes doing now, but the signal hes sending about what is to come. It may not come in a rush, because they have theyre very occupied with trying to set the standard. Thats the big thing going on. Thats going to be very painful politically for the ecb. Potentially, the numbers are large, even, say, here in italy and they dont want to do other fights. After thats over, then they can say hey, we dont have any inflation. We need to do something, lets go do more qe. So just to have a short time working without all the bells and whistles around it would not work. You need to have cooperation. They have to be in the boat. You have to have a system that administered this short time working program. You have to have firms that know how to take it up and you have to have a consensus where you dont cheat. It is a great question mark, why cant they do this . They dont have a consensus in northern europe. Uniones and management going on the same rope. Its the main bucket of water. Many have the planning, the planning in the banking system. Do we have any pipes . From time to time, you see one. You see depasche, in the uk, we had almost every at one belly up. The Central Bank Point of view is i can increase the pressure from the boiler, but i want to make sure that i have enough resistance in the pipes. Lets get back out to steve joining us on the shores of lake como. Your previous guest was talking about the problem in the eurozone. Yeah, the plumbing does need repairing and the part of the plumbing is the transition mechanism claiming all this money is being offered by the central bank and getting it to the people who need it throughout europe. Its enough to bring in a countryman. Despite your surname, you have the president of the sterling industry. Bdi. What about that plumbing . You know, money is very happy these days. Its even cheaper with 0. 05 . But i think the cost of the money is not the real problem. As companies, its not a question if the money costs 0. 1 or 0. 5 . You have to be just as confident and willing to spend the money. Why then, sir, do i look at record german trade surpluses and i see investment levels at the percentage of gdp, many, many Percentage Points lower now in germany. In europe, but in germany than they were a decade ago. You are right. They mentioned two points. Its quick by some european friends, but we should never forget, for example, our exports rise by 10 and imports rise by 9 . So all of our european friends are they should never forget we have an International Chain and we have importing a lot. From our export on our friends, because investments are too low in germany. The european or the ecb average with the 20 . And at least three points make up to 80 billion euros. Very interesting. When its talked about, there is enough flexibility on the fiscal side, as well, at the moment. They dont need more flexibility because the allow that, as well. Interesting for the whole of germany. Do i sense from what youre saying is you want to see more flexibility, you want to see more Public Investment, more private investment . We need more Public Investment and more private investment. Im not speak iing spending mor money. I think austerity has been okay. But we have though shift from social expenses to investment expenses and innovation expenses. The last night months of the coalition, they care a lot about social expenses, yet to shift the policy into the future we have to care more about innovation, more about investment. We have this meeting with merkel and we talk about these topics and im confident that they will take let me ask you a very important question. When you met herr merkel, did you discuss the party line is having on you and your companies . Thousands have been at stake. I have a very clear position. We are very happy to have these two persons because i thinkite the right and im very convinced and i wouldnt give any support of cause. I wouldnt say to them what to do. But i have a very clear position on the long run. The politics should not win. Up front, we have economical interest. We might lose some money. But say lets, you know the long run and the global rights and the human rights. Thank you very much indeed for your time. The german group stands behind merkel. Thank you. Thank you. You can compete. Thank you. Thank you very much indooid deed for joining us. The bdi, back to you in the studio. Steve, thank you very much for that. By the sound of the helicopters, more important guests for you to interview this weekend. Lets have a look at European Markets. They have been on a tear the last 48 hours weapons driven by thoughts of a ceasefire, thursday driven by the ecb action. But today, as you can see, the stock off 0. 2 . If we dive into some of the individual markets, you can see that its flat to down today, not significantly down. Interestingly, germany just up 0. 2 . It wasnt quite as strong yesterday as some of the proposedly weaker economies like france and italy, which were both up over 11 yesterday. Today down 17 basis points, down 27 basis points respectively. Now on to the bond markets. Yes, we did see that and part of the big jobs number comes out later today. Yields across the rest of europe remain very, very low. As weve been saying for a long time, in the bond market at least, that had expected some kind of easing. The yield in italy, 2. 3 today. Fx rates, of course, yesterday, we saw the euro lsh dollar fall a massive 1. 6 against the dollar. Its basically flat today, but it did, in fact, open weaker and recovered a little bit of ground. That meant that yesterday it fell less against the euro than the euro site. Were now joined by hans rheticare, from morgan stanley. Which of those steps is the most significant, in your opinion . Well, i think the message concerning the Balance Sheet of the central bank is the most interesting part of the exchange market. You remember when draghi said that the Balance Sheet should abobe increased to the levels of 112. The Euro Dollar Exchange rate down to 1. 20. What you have now is upcoming u. S. Dollar strength. Nonetheless, the ecb is going to increase the Balance Sheet in the United States. The Balance Sheet is still not growing. You have less supply of u. S. Dollar. I think the solo has the lowest yielding talent. You have alternative funding policy surrounded. That is adding to dollar strength. By the European Central bank yesterday, the yield level for peripheral bonds in europe and that makes this market less effective for investors. Including most of the emerging markets segment. That actually implies theres no attractiveness in holdings. Thats the biggest part of this Euro Weakness is going to come when we are doing the repair job on the banks, when banks feel ready to provide euro funding for global activities. That is what we havent seen and i think that is going to become a big theme going into next year. Therefore, you have to prepare for much lower euro levels. Hans, i cant help but think that the ecb is now effectively targeting the Exchange Rate. Novotny was saying the other night that he believes the Exchange Rate is going in the right direction. You get the impression that he provides the ecb minutes. Fwlfr, it doesnt surprise me that this comment came from him. A zero boundary level from interest rates, how do you generate Inflation Expectations . How do you generate income . You need to look at the Exchange Rate. In other words, you have to borrow Inflation Expectations from abroad and that is for what the Exchange Rate is for. And so urmt tyou remember the i meeting earlier this year and the authorities from japan into the direction of europe said you have to consider your strength of your Exchange Rate because you have a deflationary problem. That was a time when there was a rethinking of the basis and the ecb considering that Euro Weakness is a actually, too. And hans, weve got the crucial u. S. Jobs number coming out later today. Yes, of course. We have seen rate and strength and that means the market will be following if there is a weak number. But the big thing, what is going to happen with wages . The increase. Which of those instruct tunnel unemployment in the United States is much higher. It does not take a lot to have wage dynamics coming in. And the market is taking that information very seriously. And you see that is how the short end of the u. S. Curve is trading. The danger point here, u. S. Long yields would break higher. Of course, u. S. Dollar strength will broaden out and affect higher yielding currencies. Thank you very much. That was hans redeker. And some comments from the uk foreign secretary, he says he favors going ahead with increased sanctions on russia. He says he can still lift them later according to an injury with the bbc. He also says there have been no commitments to take part in any air strikes in iraq, but the uk could control that possibility. Just hours after a ewe containan officials, here is what they were saying. Tomorrow at on oclock p. M. , the meeting will take place. I will address and give an rd on to the military headquarters for a ceasefire. I do expect a peace time will take place tomorrow. And were now joined by nbcs albina on the phone. Wove seep reports about shelling happening in the east of ukraine. What can you tell us . What is the latest . Good morning. Were is in the city of mariopo, which is a port town. Last night, the shelling started heavily around the check points on the southeast of the city and these were the ukrainian check points. It appeared officials were point i ing. He thinks they are from all sides and there is a heavy heavy Russian Military presence in the area. This morning, we went back to the check points and there was certainly heavy fire coming in and out of the area. The mood there is very tense. The Ukrainian Army there is on the ready. There is no sign that this will seize by 3 00 local, which the size fire time is expected at. Thank you very much for that. Were going to go out to hadley gamble who is in wales at the nato conference. Hadley, this is talk of a ceasefire but talk of sanctions regardless. Give us an update. Essentially, what we saw over the last 24 hours, really tough talks from eu leaders, nato leaders. It looks like we will see some action later today. Basically, they want to rachet up these sanctions on mr. Putin. They say there is a cost to what russia has been doing and it is time for russia to pay that cost. Essentially what youll probably see over the next few hours, theyre going to have to come to a consensus about what theyre going to do about a lack of ceasefire if that ceasefire is given an attempt to implement et. We havent had word on that as of yet. Were going to monitor that situation. Earlier, i got a chance to speak to the eu president , the president of the council sorry, the commission, i had a chance to ask him about this. Sangs are the way to go. Definitely soft power sanctions is one of the things well see from him going forward. Coming up on worldwide exchange, flying from the nest, one of googles acquisitions. The internet is once again dominating things at the Technology Summit in berlin with homes, cars and devices talking to each other. Live at fifa in berlin is louisa. Guess who i just saw . Angela merkel. But not the real one, an impersonator Walking Around here. We had a juggler yesterday, Angela Merkel impersonation is here. A lot of talk about how to get your devices talking to each other, of course. The sony ceo was telling me the day before yesterday why be in the smartphone arena any longer. He was making the point that were moving into the smartphone generation and at some point well move into wearable technology. The other type of Technology Well be communicating through tomorrow. Therefore, its important to be in smartphones. Thats worth keeping in mind as we look at what type of technology is making the rounds now. With regard to interconnecting your home, i spoke to matt rogers earlier and theyre the ones bringing Smart Thermostats to your home, smart smoke detectors, as well. Its been around for a few years in the u. S. , canada and in the uk. Thats one of the reasons im looking at ifa today. And whats the difference between the European Market and the u. S. Market . Is the u. S. Market really that much more developed . I would say the u. S. Market is more inclined towards comfort. Whereas many of the europeans are worried about energy costs. Heating costs are 60 or 65 of your home energy bill. How much is it going to set me back if i decide im going to be very, very smart and get a smart thermostat . For 179 pounds for a thermostat and 89 pounds for a isnt there an extra cost thats taken somewhere . How is the cost structure divvied up and also when you look t utilities in general . It helps you save more over time. Typically, our customers cease over an year, 18 months, the thermostat has paid back itself and after that its paying you dividends. And ill be speaking ceo of harmon systems. They do big audio systems. Here in germany, were in berlin a day after the ecb decided to surprisingly cut rates. Some pages of the shop showing how deutsch mark is very sxriesed over the ecb rate decision. German federation for banks talking about putting the euro up for sales and it erases dangers that reforms are going to be too slow to move ahead. Theres quite a bit of criticism that they didnt leave a lot of room for maneuver in the future. Still to come on the show, apple says its introducing new security measures for its icloud service. Well be discussing after the break. Mission accomplished. Ecb surprise triple rate cuts for european stock markets hitting a 6 1 2 year high. Markets anticipate a solid jobs number that could be the one ta makes the fed move. But Kenneth Rogoff tells us the central bank is not letting that break. Reports of shelling just hours before kiev and proseparatist rebels are expected to confirm a ceasefire. U. S. And uk readying a fresh round of sanctions on moscow, regardless of any peace plan. Good morning. Welcome back to the show. We are just getting flashes from the bank of england saying 49 of respondents see a rate rise. The mpc kept rates on hold yesterday cop tear to what the ecb today. 49 say they expect rates to rise within 12 months and the Inflation Expectations for the uk are 2. 8 for the year ahead. Interesting, of course, the move that we saw yesterday in the pound despite no change in policy. Absolutely. And this is very crucial because a majority of economists now expect a rate hike as early as february. Interesting to see what the respondents would say about the next six months. Are they actually agreeing with what economists are saying do they expect that rate hike as early as february . It will be interesting to see. U. S. Rate hikes depending on jobs numbers later in the show. Lets have a quick look at the European Market a bit softer today, following a strong run on wednesday and thursday. The xetra dax only one in the green at 21 basis points. The ftse mib all down slightly. Looking at the bond markets, we want to show you the twoyear yields which have moved into negative territory for the shouts, the portuguese, the italian and the spanish, as well. They are all down across the board. This is, of course, as a result of the movement we saw from the ecb yesterday. Its very important to see that the twoyear yield for germany now in negative territory along with france. The ecb moves, of course, forex a lot yesterday. We saw the euro dollar fall a massive 1. 6 . Its now below the 1. 3 level. Its basically flat o