manus: avoiding another lehman moment. trillionll of $1.2 under the financial stability board failure. cameron's dilemma. we hear from the u.k. prime minister this hour as he tries to balance domestic and european demands to avoid a brexit. lonmin its shareholders for more than $400 million in a cash fall to stop rallies.
of very warm welcome, this is "the pulse," live from london. i'm manus cranny. have a look at lonmin shares. they revealed they are hoping to tap up shareholders for $400 million in a rights issue. stocks are up as the south african miner sides value fall by more than 50% over the last month. let's go live to johannesburg. we have our bloomberg metal and michael reporter, -- metal an d miner reporter. this is a substantial cash ball to say at least. andre: good morning. yes. it is good news, and something that has been worrying the market for a while. basis?nmin find the good news as far as they are concerned is that they have
found three parties to underwrite it. from that perspective they are safe for now. however for current shareholders, this rights issue will come at a 94% discount. if you are currently in london, and you are not going to follow your rights, you will be bought up. manus: this is fully underwritten and one of the most contentious issues. last week there was concern that they may not find bankers to back this up. from the shareholders you have spoken to, what is the appetite? what are you hearing? andre: i think that biggest concern still is whether the business plan that is proposed good, andlly come will turn the company around. it is a business plan that is within therecovery
next three years. it is likelys say to concern longer. if prices don't rise, don't increase, lonmin may be in the same boat again in to three years. anus: well, it's fantastically well known company, been around in such a for such a long time. to the shareholders believe in the future of lonmin? keep us abreast. andrew in johannesburg -- andre in johannesburg. staying with the mining theme, we still have this crisis at bhp. the chief executive is heading to brazil today. this comes as prosecutors seek suspension of licenses at its oil venture, as well as compensation for the victims after two dams burst. but get more on the store with ryan chilcote. the ceo is on the way down
there now -- what is the update? we broke this news on friday. give us the latest. ryan: there are two components to the story. one is the situation on the ground, and while the accident happened on thursday evening, it is a pretty remote area, six hours north of rio de janeiro. it has been very difficult for crews to get there. the worst spell of its kind in history. 13 workers are missing, the same number of local residents, three confirmed dead, two dams brurst you had. a 30 foot -- two dams burst. you had a 30 foot wall of water, mud. and some iron ore, slowly making its way through the canyon, decimating villages. manus: these dams were signed off as they during the summer,
and there is a whole post of questions that have yet to even begin to be answered before we get to the human side. ryan: first off, we have to point out that this was a joint venture. any cost for the cleanup, and deutsche bank is saying that it could cost over $1 billion, would be shared between the two. or not. maybe there is insurance because it is an independently operated company. at the end of the day, what you end up with is an overhang on the stockholm on the share price, because -- on the stock, on the share price. people just don't know how much it will cost. of the other issue is the loss of output. will be closed for at least a couple years, perhaps still 2019.
they produced about 30 million tons of iron ore at this mine, 10% of brazil's output. if you look in terms of contribution to bhp, that is about 3% of underlying earnings. ubs has got to know that it will cost the company as much as $200 million and that is what the expectations are. $200 million to bhp's bottom line. the big issue is 3% is not a big deal. what is a big deal is a lot of concern already about bhp's ability to maintain its progressive dividend, because cash flow was already under pressure. they lost almost all their cash flow to pay the dividends, and this just adds to that. manus: thank you very much. here's a look at what else is on our radar this monday morning to get you started. says the admissions inconsistencies disclose on 800,000 cars last week were the result of employees informing their superiors.
the news comes as the advisory board meets and will spring later to discuss the ongoing scandal. portugal has approved a plan to join forces with three other left-wing parties under the prime minister. hit raises the prospect of a faster reversal of some of the spending cuts imposed to secure european union bailout. continental raised profitability goals of second time this year. the car parts maker has benefited from declines of commodity prices, oil and rubber. we will be speaking to the cfo, and don't miss that conversation at 9:30 u.k. time. next, ready for liftoff. if you are traveling, you will want to keep an eye on your flights. liftoff.ect of a bets are mounting for a december
having the capital structure agreed, even have to go through several years where banks will try to be consistent. it is when you get to the end of that process, the next few years, that you are in a position where you inc. you can result one of these institutions, and we recognize that. manus: that was bank of england governor mark carney, who is also the chair of the financial stability board, speaking to us exclusively last thursday. publish it's too big to fail rules on the world's largest banks, leading up to $1.2 trillion to avoid another lehman like moment? that is the phrase we are going with. nejra.bring in their churc there are various scenarios. nejra: we are talking about how far banks have to go to avoid another lehman like moment, as
much as $1.2 trillion, or 1.1 trillion euros. this is exactly what the numbers show, that banks have to have a total loss absorbing capacity equivalent to 16% of risk-weighted assets in 2019. that then rises to 18% in 2022. this is that the fsb is a. a leverage ratio requirement will also be imposed, rising from 6% initially to 6.75%. the shortfall that banks face under that 18% tla see scenario, that ranges from 400 billion euros through that number of 1.1 trillion. there are 30 banks on the fsb's list. we are talking about hsbc, jpmorgan, parkways, citigroup. two thirds of those 30 banks are short of their target for 2019.
a structure in place, but there is still a long way to go. manus: nejra, thank you very much for giving us the details. the latest from the fsb. senior fundin the managers for european equities, andrea williams. we just listen to nejra go through this latest ruling. mark carney says it will be a defining moment. how are they in the portfolio, when you hear more capital -- it is no big shock, but what do you make of it? andrea: the ecb is obviously going to monitor the capital levels. that dictates the level of capital they hold. and also the key is the quality of the capital. you have a very wide range of banks in europe, the scandinavians who have very high capital levels, and the lower
end with 10%. i think inevitably they will have to increase that. manus: obviously, as a european investment manager, you look at various opportunities of equity and credit, various issues these banks will issue. debtere any appeal in the instruments? they are all issuing a variety -- andrea: it depends on the quality of the underlying bank. some are in a much stronger where it is a far more stable situation that an investment bank. our presence has been scandinavia, where they have a higher capital levels and less pressure. manus: when you look at the european banking scene, for example, deutsche bank is -- it is 2020, 2018
quite a substantial lead time. before you see any significant recovery. andre: when you have to -- andrea: what you have to think about, it varies for economies, how they have to deleverage to get to these targets. underlyingso the quality -- what you have to look for on a quarterly basis, how much capital they are accruing, how are they working toward the target. manus: one other area that fascinates me -- the commoditization. the whole world and his wife is running after it. they are, aren't they? deutsche bank, ubs, credit suisse -- what i am interested in is the commoditization. andrea: this is the whole
problem. they have all got to invest in capital, so they have to get scale inequities or they have something which is a competitive advantage in management. there is the tax situation which is being taken away, but they still have a competitive advantage in the sense that they have the expertise, and it is a big part of their ubs -- it is less important. i think they have a bigger issue to tackle, where they need to think about where they go. a lot of areas are being commoditized, you're right. manus: you will stay with me. andrew williams. we will move along and talk about china. the you one dropped to its lowest point after the country's exports stalled for a fourth month. -- a1 economists
disappointing set of data, more pressure again on making any of these growth target. mark carney says the real targets is 6%. the pressure is mounting. >> yeah. the big number you mentioned is 31. all of the analysts that we surveyed for this data over the weekend underestimated how bad it would be. that is a real red flag -- it shows that people still don't have a sense for where this economy is going and what the data is actually saying. yuan was devalued in august and that the evaluation was not kicking in. the numbers a little less of a concern because commodity prices are's much lower. the one silver lining is that because exports didn't fall quite as much -- the trade balance is ok so we don't have to worry about capital outflows.
that is the situation we are in now with the chinese economy, not so worried about capital outflows. certainly a very disappointing number. manus: nick, thank you very much for giving us that. well. one side of the world is talking about more stimulus, different when it comes the united states. ready for liftoff is the tagline. a 70% now predicting chance that there will be a december rate hike, the number rising after friday's big jobs numbers. bill gross says he says a 100% chance -- says he sees a 100% chance. relieved ifre quite we ever get off the zero. we have a spectacular set of numbers, wages rising, and bashing it out. please tell me, please tell me that by the time i get to christmas, it will have arrived.
andrea: i think we will. we have talked about it for so long. we were disappointed when they didn't do it last time. yellen had primed the market for it and then didn't. i don't think we will get too hung up about it being a very strong increase. i think it will be a very gradual. the economy is strong so we will not get the rapid hike in rates. manus: i would like a roaring u.s. economy, 2004. talk to me about how a rate hike -- emerging market dropped, the taiwan dollar dropped, a reemergence of shock. transpose that back to me as the european equity manager. andrea: you have to think about the impact on the u.s. economy. i don't think it will be a massive hike. the construction data that we the spanish companies
exposed to the u.s. is something on emerging markets -- obviously, the brazilian economy is a big area first -- economy. 40% of their profits come from there. it is very much linked into that strong economy. it is taking through the names because of that exposure. manus: how ruthless are you in calling time on a position -- whether it is trying to make that rotational choice? are there strict rules? andrea: there are not strict rules -- you have a valuation level, and obviously reassess it. but if you feel that within the sector there is a better
opportunity, than you will sell that stock and reinvest it. manus: andrea williams for royal london asset management. up next, should the u.k. leave or stay in the eu? will be speaking about it as business leaders gather for the annual pilgrimage to central london. the cpi annual conference with a special guest. david cameron. that speeches live on "the pulse," coming up next. ♪
manus: prime minister david cameron will outline his position on a possible brexit later this hour when he addresses the confederation of british industry's annual conference. the majority of businesses say they want to stay in the european union, albeit a reformed version. let's go straight to anna edwards, who was at the event. who was your guest? anna: thanks. we are waiting to hear from david cameron, 15 minutes or so from now. we can moderate our expectations about how much detail we will hear. this week he writes to the president to set out on paper what it is that the u.k. wants to see from its renegotiations with europe. even now, they could be broadbrush themes we will cure
about rather than really specific requirements that david cameron could meet or fail to achieve. we will hear from david cameron later, possibly trying to give some broader context of this very business audience here at the cbi. we have here trying to work out what business really wants to hear from the politicians about brexit and the broader u.k. economy story. let's talk to a business with a lot to say, the brewery business. and he would joins us. great to -- and hy wood joins us. great to see you. what does it mean to a business the size of your stash what does brexit mean to you? >> along with two or three other things, it is the big issue of our time. recentlye have developed our export business, both within the eu and also in the wider world.
that oure very keen relationship with the eq develops, and we think the eu is not perfect and it does need some reforms, but we feel that it is better that we are able to renegotiate at the table. anna: we have heard a lot of eu voices -- what about contingency planning in case there is a vote for a brexit? thing all signs have to think about? have,is more than nice to it is a route to grow for us. yes, we are dealing with other parts of the world and that is but wearticularly well .ant to see that continue anna: we hear a lot about how there should we know trading in
europe, but you operate in a very competitive industry, and no doubt people want to protect their turf. yours is a medium-size brewer in east anglia -- do you meet with a friendly welcome? >> by and large, yes. whether you look across europe where craft brewing, there are lots of competitors. anna: and if we hear any from david cameron today about what he said europe, if we get any of his thoughts, what would you want him to be saying about europe? what are the priorities? >> i think there is broader stuff for how the u.k. economy will grow, how it will work with europe. clearly we don't want to be part of the single currency and i think that is important. what we are looking for is a completion of the single market.
that helps the u.k. economy grow. most of our business is in the u.k. -- we want to see a vibrant and growing economy. anna: do you mean there needs to be more of a single marke services? >> indeed, and that boosts the u.k. economy. it means that when people are resting or in measure mode -- anna: and what about the broader u.k. economy conversation? how is this is for you at the moment? >> alongside the eu debate, there are three other things that -- skills, getting the right skills into our industry and others. our industry has lots of small businesses, and i still hear cries of access to finance. i would like to see more money going into support that innovation. and being from east anglia, infrastructure is a massive issue.
we are a growing part of the u.k., yet our infrastructure lags behind dreadfully. anna: a beautiful place. doesn't take an age to get there. andy wood joining us here at the cbi conference. go until david cameron takes to the brightly lit stage behind me. we will bring you the details of that speech when it happens. back to you. manus: anna, thank you very much. the cbi conference. the british prime minister, david cameron, is due to arrive. we will bring you that speech as soon as he steps up. in the meantime, let's get you up to speed the top headlines on bloomberg. eating credit may announce plans to sell assets on as many as 12,000 jobs, according to people with knowledge of the matter. the news comes wednesday, could come on wednesday. italy's largest bank records third-quarter earnings. they may need to cut bonuses by
as much as 60%. that is according to calculations made by -- the writedowns related to the acquisition of an investment leadingthe year 2000, to an annual loss of $2.7 billion. one of the world's biggest shipping lines says the global economy is going out of n forecasters think. also say a trade is significantly weaker than expected. in the german tire maker continental are trading lower this "top play" 20 joined by wolfgang schaefer. everything we read about the
auto industry in europe in the united states of america, the commodity input side, it should all be adding up to a fairly good scenario. what is your perception of the global auto market? wolfgang: in principle, i would agree. i think we saw a weaker china last quarter. i'm sure you're aware of. now china in the fourth quarter is back to growth in the automotive production. europe is quite strong which leads aside russia which is quite weak but the rest of europe is strong and america is on a record level. we've never seen this. and we don't see any change in this overall positive development, as well as the starting of next year. manus: everybody in the world wants to know the reality of china. and i'm looking at your comment here.
are you talking about despite the substantial repeat of production volumes in china in the third quarter, the intensified slow time. take me inside china. when was the last time you were there and what is the reality? ake me behind the statement. wolfgang: still for the chinese average consumer and for those people which are growing now into the middle class and into this income bracket of more than $10,000 per year, for them it is still very important to have a car, to own a car, to show neighbors that they can afford a car, and obviously now the boom of the last year is leading to the situation that many cars which are at the first time buyer are going to reap. so there are many exactors
which specifically in our industry are supporting further growth. and as i mentioned, we do see this already in q-4. government has hedged a little bit with some reduction of texas. we expect it to continue. the consumer overall is still interested in cars and fascinated by owning their cars. manus: the volkswagen scandal is ongoing, it's growing and spreading. how big a customer is volkswagen to you? what impact do you perceive the volkswagen scandal having for ontinental in the medium term?
wolfgang: well, volkswagen is one of our big five customers. i mean, we're one of the biggest automotive suppliers in the world and volkswagen is one of the biggest car producers in the world. no wonder with have an intensive business together. the actual numbers, we don't see a bigger impact on the call of not only of volkswagen but of all diesel engines where we supply parts to. it is stable basically on the level we've seen as well eight weeks ago. long-term influence, obviously still a little bit too early to predict on the diesel engine market. might be some tailwind for some further components in the diesel like after exhaust treatment which could probably even be helpful in the next three to five years for our top line. manus: mr. schaeffer, we wish you well and the c.e.o. for continental, wolfgang schaeffr from hanover from germany. from automobiles to airlines, the most important space event.
it's on the way. bloomberg is at the dubai air show. what's happening and what's the theme? reporter: good morning again. a lot of talk about safety in the wake of the sinai crash as unite expect and not such frenetic orders coming from the gulf carriers but interesting things going on. i'm pleased to say i'm joined by john flattery who is the chief commergs will officer of a brazilian company. we see a lot of brazil as of late and especially one of the features is that the real has been plunging against the dollar and is good for you cost.e it lowers your
are you looking forward to sharing the lower prices with your customers? john: we don't base our prices on the fluck chewations of the real. our chief financial officer would be a better guy to direct that to. it doesn't overly influence the pricing of the aegis family which is consistent and expect it to be consistent in the coming years elliot: more on brazil as a whole. brazil is having problems now with the scandal as a result, and has the damage to brazil's p.l.c. image impacted the other flagship company such as embraer. john: we're in 50 companies with 70 operators around the world so we're a global company today. brazil has some issues going on. brazil will come out of that. but our customers are more focused on the assets that we're delivering to them and we have a dispatcher liability around the world that is significantly robust, enjoyed by our competitors and what our operators are focusing on. elliot: you've been trying to
sell more jet to asian customers but haven't seen much action there in the couple years. when can we expect your marketing and attempts to sell in orders? john: orders go in cycles. over the course of the last two or three years, we've achieved hundreds of firm deliveries in the north american market. so a different sovereign jurisdictions and they go in cycles. in the chinese market, we own 80% of market share, significant orders in the indian subcontinent with ordering 50 of our e-2 aircraft. i'm pretty confident the next couple years you'll see a lot more activity particularly as we cadence into the new technology e-2, the g.t.s. powered e-2 in the asian-pacific region. in the course of the next 20 years globally we expect 650 of our aircraft to be delivered. in the asian-pacific region, we're considering 25% of the deliveries are going to that
region so it's an important region for us. elliot: the competition is heating up and china is launching a regional jet mitsubishi. you bored about the competition? john: competition is good, we take it seriously and don't take it with hubris. we congratulate china of the rollout of the 919 and forces us to be bigger. in the case of the 919, that's not in our segment and is a bigger aircraft that will compete with the 737 and a-320. we're focusing on our sector between 70 and 130 feet. elliot: bombardier is a little bit of a mess at the moment and had to be gailed -- bailed out by the quebec government and they approached airbus to collaborate with the c-series. have they approached you? john: our focus is on the e-jet and commercial aviation. we're not interested in the c-series in terms of acquisition. it's not for me to talk about here whether they approached those or not. it's not something we're interested in and focusing
exclusively on the e should-jet. competition makes us stronger. in terms of project positioning, the c series, the 300 is competing with airbus and boeing. it's not in our air space. you look the a the smaller member, perhaps less optimized version, that fits between our 190 and 195 e-2 so we feel confident about the competitive dynamic. elliot: and would you considering complaining about bombardier? john: i have no comment whatsoever. elliot: chief financial officer of embraeir. plenty more to come from the air show at the dubai airport and airbus later on. for now handing it to you at london. manus: coming up on "the pulse," business and the prime minister david cameron is
headquarters in the city of london. time to chart the markets. marc: two inreports swaying investors, including the job report which with a rate hike of 2.7 america. -- 2%. the other is china export data, weaker import data hurting sentiments in emerging markets. coming close, you think the shanghai index would be falling today but no, it's rising. china stocks have reached the highest since august 20. this is the shanghai composite. the reason why it's rising today is the government has announced plans to resume initial public offering by the end of the year. the end of this five-month freeze on new share sales signals investor confidence in the equity market. back on august 26, the market hits the lowest since december. since then, interestingly, it's rebounded by 25% entering a
bull market, the gauge, though, is still 29% below its record, that yellow circle there set on june 12. but that data is affecting how emerging market assets are performing came. -- performing today. come in close. this is the msci emerging market the last six months. emerging stock markets are dropping on expectations the rates will be raided in the u.s. and on that weak china data. the index has fall 27b.6% in the last three trading sessions, the biggest fall in six weeks. the bloomberg index tracking to developing nation currencies has slipped to a five-week low and malaysia 3.4%. emerging market stocks have benefited from expectations that rates would be raised next year and since the six-year low on august 21, the msci index has risen by almost 10%. very quickly, i want to show you what's happening in the
portugal bond market today, political uncertainty boosting yields on the 10-year. portugal bond yields climbing on the political uncertainty, a socialist led coalition plans to unseat the new administration, the socialist party will join forces with three other left-wing parties to present a motion in parliament today to reject the new government's program. member, mr. quello's coalition didn't win a majority on october 1. investors have been frequenting about that since then, making portugal the worst performing euro zone bond market in the last month. ortuguese yields rising today. manus: the markets kick off at
4:30 london time. a global close for a global audience. prime minister david cameron is set to speak in london. our bureau chief joins us on set and anna edwards is standing by at the c.b.i. simon, great to have you with me. this is one of those moments, he has to write a letter to europe but the tenor and tone of what he says today will be retty important, isn't it? >> he can write a letter and the domestic audience says that's not enough and the people in bruss ems say it's too much and you can't have that. he has to navigate those two audience this is week. manus: the sunday politics shows, i was watching them and they are all obsessed with the fact that some of the issues, it comes down to migration and the immigrant issue. it's probably top of the priority and what he does there. his request, i should say.
simon: and if you look at the polls, a lot of people don't really care about being in the e.u. or certainly not offended by being in the e.u. but you can use the debate as a casual for the immigration debate and people do care and is an issue for voters and will want something done. david cameron talked about it. and we had the electoral promise before he won the election the first time and to reduce the number of immigrants, he failed on that count and will have to go to brussels and try to reduce labor flows into the u.k. and he may not get that. manus: anna, you've been dying interviewing ning
host it employs nearly 15,000 people in the u.k. what is it the debate means to them, for example? they were keen to point out it did not mean they would leave the u.k. but would influence their investment positions and seems to be something broader european businesses might be able to relate to. and they were talking how they wanted a single market for services in the u.k. because that would boost the u.k. economy. so anyway, i think david cameron perhaps is going to be taking to the stage and speaking. let's get to him now.
manus: we're just going to get that for you from the prime minister. he has taken to the stage there. anna is standing by as we get those headlines in terms of what cameron actually says. of course, we will bring those to you. simon, just before you hop off. and we're going to go back and pick up the sound as soon as we possibly can. find it fascinating the -- actually, we can listen. [applause] >> let me welcome caroline and i think it's great the c.b.i. will tap into some strong female leadership and great welcome to her. i'm sure she'll do a brilliant job. can i welcome what you're saying this morning about global ambition. i think that is absolutely
right for britain, not the least in a week when we welcome the indian prime minister, having recently welcomed the chinese president. and john, can i also welcome what you say about a scoring britain as an assiston villa fan, as scoring would be a good idea. now, thinking about what to speak about today. i went back to what i said in 2010 when i stood on a stage just like this and i said i wanted the next five years to be among the most dynamic and enterprising in britain's history. now, i'm not standing here and claiming we've sold all of britain's problems but we are in an immensely stronger position today than we were five years ago. the 900,000 hat in more businesses that are operating in britain.
you can see it in the fact that we employ two million more people. but i also think these have been years where the entrepreneurial spirit has really gotten going again in britain. i'm not going to dazzle you with statistics but it is notable that we've got unicorns -- you might think what the hell are unicorns and i did when i first read it but it's a startup business that reached a billion pounds in value. four out of 10 unicorns in europe are based here in britain, businesses like shazam, like just eat, like asus. you see it in the fact that compared to 2010, venture capital is investing 10 times more in britain than it did five years ago. you can see it in the fact that in the last five years, 191 new companies have decided to headquarter here in britain, far more than any other country in europe. these have been years of enterprise. go to tech city. it's an extraordinary thing, just five years ago there were 250 businesses in tech city. there are now over 3,000.
it is europe's tech hub. i think these have been years of enterprise. they are years of dynamism but we have so much more to do. what i want to do this morning is briefly say where i think we are, identify what the next challenge is for us to tackle together are, and then mention two of the biggest challenges, the deficit and europe. and then i'll very happily take your questions. and in terms of where we are, we've got to this position of a stronger economy, a deficit down by heart, the fastest growth in the g-7 and done it through partnership. you were very clear about what you wanted from government. you wanted lower taxes and we cut our corporate taxes to the lowest in the g-20 and now headed for 18% corporation tax. you said you wanted regulation lifted off business. we've taken 10 billion pounds of regulation off business and our rules on regulation, if any minister of mine wants to introduce a regulation, they have to cut two regulations.
that i think is working well. you said you wanted planning reform and we replaced thousands of pages of planning guidance with just 50 key pages so that britain starts building again. you said you wanted infrastructure prioritized. we haven't sold all our infrastructure problems by any manner of means but we're just about to complete the biggest infrastructure project anywhere in europe under this capital city in cross rail. we've given the green light to hs-2 and set up not just an infrastructure plan but now a cross-party or all-party or nonpolitical infrastructure commission to make sure we build what we need for our future. now, we haven't managed to achieve all of the things i would like to but under those key issues, taxes, infrastructure, red tape, planning, skills, in the last parliament we trained two million apprentices. so we're beginning to deal with britain's skills deficit. so i think we have come a long way but we've come a long way based on partnership and i hope
this organization under its new leadership will continue to work with us. we want to be the most business friendly, the most enterprise friendly government anywhere in europe. that is the goal to help us to achieve that. one of the ways we can measure progress is through that international definition of the best place in the world to do business and we just moved to six out of the entire globe. this is the sixth best place anywhere in the world to start and to run a business. so first point, keep working with us to deliver that. second thing, what do we need to do next? i would say the problems that remain, we're still not exporting enough. we still don't have a balanced enough economy. and we've got a particular issue with some of our infrastructure, including broadband. so let me say some of the things i think i need to focus on and dare i say it, some of the things i hope that you will focus on. in terms of our focus in government, you're going to see a real drive to help more of
you export. we still have a situation in britain where about 11% of our companies export. we want to drive that up and you can already see the big advertising campaign, the big promotional campaign to encourage exporting. we still need to do better on skills. and you are going to see from us the funding for three million apprentices in this parliament. and as i said, a big focus for us is going to be broadband. if you're a business or an individual or a household and connected to broadband, it's like not being connected to the road network or not being connected to the electricity network. today i can say what we're going to do next. we've taken this country from 2010 back 45% of homes past to now 83% of homes passed. we're on track to get to 95% of homes passed in 2017.
. >> great expectations. investors now see a 0% chance of a fed rate hike in december after friday's blowup pay figures. china's weakness is a slump in china trade flows worsesen and the economy drops to the lowest in almost three weeks. avoiding a lehman moment, banks face a shortfall of $1.2 trillion under the stability board failure rule. ine francine lacqua joining tom keene in new york.