And we are just going to bring you to the europe sentiment data. The number was previously at 103. 2. Its coming at 104 for november. The expectation index has come in at sorry, im just going to get that one. Its come in at 99. 7 against a previous index of 111. 0. We are going to bring in the chief economist here to show us this is a pretty big surprise. This is a very important data point for two reasons. First of all, the economic weakness in europe over the last six, seven months has been largely germany. Positive germans are the turnaround we need. And the german weakness itself was focused on business investment. Investment is driven by expectations. And now that we have our sixth month of decline, it does show that business can start to go up begin at the end of this year and in the First Quarter next year. So these data suggest the worst could be over. Of course, its just one month. We have to wait for confirmation, but it is a very positive sign. Does this also indicate that in the instability were seeing in russia, between russia and ukraine, isnt impacting germanys economy as much as some Analysts Expect . Well, it has impacted germany a lot, this instability, but the good thing is over recent months there have been less headlines about it. The conflict is still raging, but it has not gotten much worse over the last two, three months. As a result, the german businesses are getting used to this background noise of geopolitics and if they are getting used to it, their expectations are actually normalizing if todays data are anything to go about. As youre saying, this is forward looking so its positive in what may be due to come, but it is just a survey with expectations. We have had gdp numbers and pmi numbers not as encouraging, but youre taking a lot of strength from this data. This is just one month. We have to see this confirm to really be sure that this is a change in trend. We need to see three months of positive data. But yes, the pmis, the gdp data are different. The pmi, look at the current situation. The gdp data are backward looking. Its the expectations component that really tells us something about what might happen in the future and for once we are getting good news this morning on that. Thank you so much. Well continue our conversation on europe and germany coming up after this break. Thats the chief economist there at bird bank. We had solid gains in europe last week, 3 gains from where we stood a week ago. And we started off this week with slight gains. We started flat and strengthened through the session and we have a positive reading out of the german Business Sentiment data which is not taking the edge off. Lets look at the stoxx 600, we are up 1. 25. And the stoxx 50 is up. The best part of 1 . Significant moves over 1 now. Well look at the individual market to see where the strength is split out on a countrywide basis. The ftse 100 fractionally in the green, but Continental Europe benefiting once again from mr. Draghi last week that he does stand by ready to act if necessary. And germany is doing well today up 9. 6 off the sentiment data much more positive than expected. France up 1 . Italy up three quarters of a percent. Lets dive into some of the individual stocks so far today. Friends life is trading at the top of the stoxx 600 on news that aviva is close to making the deal worth 5. 6 pounds. They are giving friends new shareholders in the new entity. This is expected to nearly double avivas numbers. Aviva is up 4 today. Meanwhile, france is up significantly 7 . In san palo, they are up 2. 12 . They are eyeballing a deal with rbs. Rbs put their business up for sale in august and we are hearing the u. K. Is interested in that sale as well. And waell look at the news driven by mario draghi in the coming weeks and months. That was mainly focussed in the european bond markets but it brought down the u. S. Trashry 2. 3 . But more movement in europe as i just said. Germany is not comfortably below the hand. And bonds in the u. K. Are pushing around the 2 handle, 2. 06 . Italy, record lows for the tenyear italian bond. So similar to the u. K. Yields, they really have similar fundamental outlooks. 2. 16 in italy. And in spain we are now below 2 on the tenyear, 1. 97 . Significant yield compression over the next couple of days. The euro gave up some ground on friday. Its flat today, 1. 2384. The u. S. Dollar is bouncing again considerably up half a percent against the yen. 118. 36. Its just off the highs we touched last week, 118. 98. But of course, significant strength in the dollar against the yen still. The aussie dollar is soft on news of chinese easing, but today we are giving up some of the ground. What has the news of the chinese easing done for equity markets in asia . Well get an update from sri standing by in singapore. Good afternoon to you, sri. Good afternoon to you, wilfred. In a nutshell, like louis hamilton did not too long ago, turbo charge the markets. Quite a bit of risk on rally in the asian equity session. Really led by greater china. Look at this, eight shares up almost 4 . Threeyear highs for the shanghai composite. The markets were surprised any Interest Rate decision on friday. It was on schedule. Its the first cut in rates for about two years by the pboc. So it really juiced the property developers. The brokerages were in favor today. And even the banks after a stumble at the initial early goings on in the market. They did regain some composure and were stronger in settlement as well. The big unknown is really how long the gains will last for. Are we going to see real sustainability across the markets or are investors going to take a step back and sell into this bounce on the idea that hang on a minute, if we saw such relatively aggressive action by the chinese monetary authorities, doesnt that imply that there are deeper stresses that are in the broader chinese economy . So thats the risk, but what we do know is many economists have been telling us that heading into 2015, possibly as early as the First Quarter, we could see more action, more easing by the pboc to really try to consolidate the growth rate between 7 and 7. 5 . All in all, longevity off the move is the big question Going Forward. In terms of liquidity, trading volumes are thin on the ground. And today, seema, because the japanese markets are closed for the Public Holiday, they are the ones to watch heading into middecember and the politics of course middecember election call by the Prime Minister abe. A referendum, if you will. Japan and china very much in focus for Global Investors. Sri, thank you so much. Now to get Market Reaction, the chief economist at Jennifer Bank is with us. Some reports indicating there could be future Interest Rate cuts. How does that impact or revive chinas economy . Some would argue Structural Reforms are needed. These are two separate things. When Structural Reforms are needed, china has implemented the reforms step by step. What they tried to do is minimize the disruption from the longerterm change to the shortterm business cycle. When we say structural reform, it means china is doing something new. The chinese authorities dont really know what the precise impact of these new policies will be. If they give a bit more freedom, for instance, for the Real Estate Developers to go bust, what does that really mean to the economy . If they get a bit more freedom on the downside, will that hurt the economy a lot or not . And what we see in Monetary Policy and to some extent in Government Investment spending is, whenever in these structural reform processes, the overall economy seems to tank a little more than they would like. They go against this with their stimulus. But broadly they have two things, structure reforms is a longterm organization and shortterm policies prevent the economy from slowing down too much. Thats what we have learned again. Of course, the easing taps in some way or another, but this is more significant than that. Will the reaction and credit growth be similar to when we have rate cuts in 09 and 2012 13 . This looks like a cautious rate cut. It is structural reform, it is not an overall cut. Well have to watch the next few Economic Data. And if they look sluggish, then as you already suggested, there might be more rate cuts to come to make sure next year the growth rate is above 7 . Is. If there are future rate cuts out of the pboc, is that an admission with china it is dealing with a challenging situation to look at slowing growth and high inflation . Well, i would say relative to the situation in many other parts of the word, china has a mightily challenging situation, not a very challenging situation. The mightily challenging situation is not because they dont have significant problems but because they have a lot of room to deal with. Look at where chinese rates are, they could actually cut. There are many parts of the world that you cannot cut anymore because they are very low. China has the tools needed to deal with its economic issues. The gdp is around 250 and still rising. Flirting with these kind of rate cuts, is that a recipe for disaster for china in the long term . No, i dont think its a recipe for disaster the long term. We have to make sure the china market modernizes and that china is able to deal with the debt that are focused on some parts of the economy. It is significant issue, but again, china with its huge private savings rate, 40 of income is being saved, also has a lot of asset growth and a huge flow of savings which can be used to offset occasional difficulties. China is not at the brink of a debt crisis. Thank you very much. And coming up on the show, we cross live to ferguson, missouri, as the town braces itself for a grand jury decision over the Fatal Shooting of black teenager Michael Brown. All the details on the shocking arrest of portugals former Prime Minister for tax fraud, thats coming up. And we round up the nailbiting weekend of sports including the onehanded catch that sparked an incredible reaction on twitter. Thats coming up. You can bring back a lot of things from a trip around the world. But you cant always bring back customer data. Because many customers dont like it when their data moves around. Can i go now . If youre going to do business globally, you need a cloud that can keep your data where it needs to be. Today, theres a new way to work and its made with ibm. Jose socrates who ran portugal from 2005 to 2007 was praugt in for suspected tax fraud and Money Laundering. Officials also searched his apartment in lisbon. This follows the arrest of a number of highprofile portuguese officials. Vladimir putin says russia is not isolated in the International Community but is blaming the west for the fallout from the ukraine crisis. He also played down the impact of Falling Oil Prices and the weakening rouble saying neither has major consequences for russias economy. But the finance minister says the economy is losing 40 billion a year due to the sanctions and added the impact of the Falling Oil Prices is 90 to 100 billion. However, the rouble has been prizing against the dollar today as you can see the dollar suffering around 2 . Now our very own guest sat down for an exclusive interrue with the chairman of the u. S. Holdings and widely regarded as russias richest man. He asked the billionaire where he sees Investment Opportunities in russia. Translator the problem of russia is not only sanctions, although it became a trend which is greatly influencing the economy. I think its a subjective factor. Our economy is fully diversified and we depend on the energy eximportants in our economy, we depend on mining. We have telecom companies, hightech companies, which have been growing quite well and they have been conquering markets quite successfully, but today it entails certain subjective difficulties. But theres no panic and i am not prone to say panic will appear, that it will come along. Some fears are quite inexplicable. Certain reverse activities on the sanctions, a certain response, but i think everybody will stick to International Law agreements and their promises. Everything will be okay in the end. As a person who considers himself a russian businessman but has worked for several years in the u. S. And european markets, im sure that it is in our best interest to live in peace because there is no bigger global threat. As a businessman, i am distanced from politics, but i wish for this. The subjective elements which influence the problems many the world economy, they should all be elevated by our politicians. And that is my sincere desire for all of us. I want to wrap up just by asking you a question, really, about how you view yourself and other Business People in the context of this sanction story in russia at the moment. Whenever i read anything written by western journalists, they generally say, so far mr. Putins friend mr. Usmanov has escaped personal sanctions. Is the link that theyre making, do you think, appropriate . Does that represent you as you would choose to be viewed . In russia or in the west . Translator i am a citizen of the Russian Federation and am a lawabiding citizen. I do everything by the law thats legal and legitimate. And in terms of taxes in russia and other country where is we invest our money, for example, the United States where we invest in the internet, we are diversifying into china and i have a feeling in terms of my selfperception that we should not use certain stereotypes. I would call upon everyone to remember the biblical saying, dont judge and you wont be judged. If someone does something against the law, theres a time to be liable for that that will come. As for justice, i have suffered at least once in my lifetime. It was quite painful. While i dont think i have another blow in store for me, at least i have done everything which is in line with new conscience, in line with my personality. I could not lose trust from the Financial Market where i am active. Now to get Market Reaction to that, david staples, managing director in the Corporate Finance from moodys is joining us in studio. A great interview highlighting the fact that there are challenges facing the russian economy, but he also highlighted there are opportunities, specifically in the telecom space. What are your thoughts . Well, hes a major investor in telecoms, megaphone is an important shareholder, hes a major shareholder in mining. Those two companies that he invests in are doing well and they have solid liquidity. They can carry themselves through the next year, year and a half. But i think the broader challenge for russian corporates is essentially they have been shut out of the International DebtCapital Markets since march. First because of the fear of sanctions. Then because of sanctions on some. And then the potential expansion of that. So the russian corporate sector looking at over the next 24 36 months could face constraints on funding themselves. And now with the oil price story, the russian government may not have the resources Going Forward that it currently has if they have to support the corporate sector. Before we dive into some of the individual corporates, as you say, of course, the oil prices have not been great. Sanctions have not been great either, but a weaker rouble that he has been saying relies on exports, so the weaker rouble could be the reason for some of this pain. It is for major exporter. Those in the gas and Mining Sector are actually going to benefit from this. Now, these are sectors that require substantial Capital Investment. They do need to continue investing for the future. So to the extent they dont have access to capital to do that, and right now they are sitting with good balance sheets, with cash on balance sheets, but they will have set maturities coming in the next two, three, four years. And unless they can access the broader Capital Markets, the banks will have constraints, markets will have constraints and Capital Investment within russia will have to shrink. Indeed, well talk about a couple of those specific corporates. Russian oil producer bashneft is looking at doubling their profits over the last year. The group shared their profits that were up 5 during that period. But reuters reports the debt central bank chief warned that lenders will make 10 pekt less in profits this year. Dave, well talk about bashneft because the debt race you have on that company, you end that with a positive outlook. Bashneft is an interesting story in russian corporates because it was owned by systema. The chairman of systema is under house arrest and he was forced to give up shareholder because of accusations of Money Laundering and an unfair privatization. So bashneft has been transferred to state ownership. Where will it go next . This is a perfect example of the risks of russia, the institutional governance concern that is people operating, expecting they are operating within the law can find themselves outside of it. You cut the rating on systema. We cut the rating to be one negative from two. After giving up bashneft that was worth billions and the major dividend contributor with substantial cash flow, the risk is what is next for sistema . Is it finished or is the story over or further fines . David, thank you for joining us this morning. David staples, managing director in the Corporate Finance group at moodies. And our attention tu