all of these people across the mediterranean to seek refuge in europe. they tell people what happened to them in a bid to drum up support. many people and kreuzberg, which already has a big immigration population, are on their side. >> it's not about wanting more. until now, we demand our basic right. freedom of movement is basic right for every human being. >> but the refugees also face opposition. this summer, the police raided a disused school that refugees had squatted in for months. the squatters had refused to leave voluntarily. the authority -- the authorities called in the police, and the refugees called and the refugees called in their supporters. peaceful protest turned into a tense situation that lasted for weeks. now security guards check ids in front of the school. authorities do not want any new refugees to move in and certainly not the media. >> what about the camera? >> adam enters by himself. with a cell phone, he films the remaining medical hard-core of the school squatters, angry at berlin's politicians. >> when you clearly think about

. >> europe is sort of amess. the bagging system is much more prone to trouble there than here and, of course, they're basic contracting where we are not. let's look at charts. long-term chart of the s&p. i wanted to point out the high in 2000 the high in 2007 and of course this powerful breakout of these stops, juxtoppose that. europe, france, italy, spain, it's the same proposition, not all is good long term him meaning it hats a high in 2000. 2007 there is a lower high. it hasn't gotten back, whereas you got the circumstance, europe is not even close, now not only is the long-term not even close, the here and now is starting to diverge. take a look at these charge. this is europe, s&p on a near-term base over the past 12

single market for energy in europe, which really has europe address the issue of how to deal with russia. >> lorenzo, thank you so much for joining us. lorenzo bini smaghi. u.k. prime minister david cameron has been speaking at the nato summit. he says russia is ripping up the rulebook in ukraine and nato must be able to act more swiftly. he said the u.k. is ready to provide 3500 troops. for those listening on bloomberg radio, the first word is up next. for our viewers, a second hour of "the pulse" is coming up. we have an interview with peter sutherland, the chairman of goldman sachs international. we also have a bloomberg exclusive. the lenovo india president. ♪ . . >> a bloomberg exclues i. roubini called the economic plan successful. new trade sanctions against russia. meanwhile obama and david cameron urge nato to confront the islamic state. we're live in south wales. >> good morning to our viewers in europe. good evening to those in asia and good morning to those just waking up in the united states. i'm anna edwards. also coming up in the program. counts your call rees and measur

for a bit to eat or something european brands from europe to russia and. there will be something empty here in the market i think the seeds have to space and we can launch our new bobs now despite the crushing qantas three taking a bit of a battering this year down some seven percent twenty three percent for july this what that sick unless that stuff that is still growing and that's the luxury while the russians they love it. shouldn't have it it looks written.

does europe have a problem? adam tweeted in to say maybe the co-founder of software giant sap, he's worth $8 billion. well said i think on that, adam. join the conversation here if you want to get in touch on "worldwide exchange." e-mail, worldwide@cnbc.com or via twitter @cnbcwex. our personal handle are there on the screen, as well. >>> and coming up on this show, are high times on the way for high yield after that summer sell-off? we will head over to carolin roth who is at the goldman sachs leverage finance conference with some exclusive executives. that's coming up next on "worldwide exchange." how do you beat the number one seed? you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. data can help show you how to win, no matter what business you're in. today there's a new way to work. and it's made with ibm. >>> the dow jones implying an open by around 4 points. na

it can be $13 in europe. >> in eastern europe, if tensions flare, don't expect gas exports to change relines on european energy. not right away. >> most is not dedicated to the u.s. market. u.s. will follow the highest price market which is asia. >> not everywhere is eager for america to export. if you live in the states and heat with gas, the heating bill higher. >> there's a possibility that u.s. domestic gas price will increase after exports start. >> and price hikes could put pressure on manufacturing, surging in recent years, off comparatively cheaper costs. >> there's a lot of discussion within the country, within the industry about whether exporting natural gas is a good idea. they require it at a low price. will is concern that if it is exported, maybe the price goes from $4 to $8 in the united states, and comes down in other countries, and all of a sudden we don't have as much of a competitive advantage. >> american gas producers say without exports to reach new customers and driving up prices, there'll be drill. >> we have some areas in the north-west shutting down, enough.

a choice between europe and the u.s., you always go with the u.s. >> europe's not that cheap. the indices, you have to, basically at parody with the u.s. in terms of pe. stay with the u.s. >> you agree, joe? >> i agree with pete who agreed with me. >> with josh. >> come on, now. >> u.s. >> u.s. >> stay with it. >> u.s. >> you saw my notes. >> you're awe lllowed to do bes. right? >> you don't have to. go for the better bang for your buck. >> buy european small caps four times next year's earnings. u.s. is 20. not getting paid for what already happened, paid for what might happen. >> rightly focus on behavior, bjorke. investor behavior tends to be all or none. they heal something like this and say europe is about to get, you said, 2012 all over again. let's allocate out of the u.s. go all-in europe. all-in japan. i'm pouinting out, that's not te right trade. the time for europe, back in june. stay with the u.s. don't allocate anything out of the u.s. towards europe and japan. >> you've got to invest in things that have liquidity, scott. the one issue. cannot talk about certain a

europe has more best of the best. they have the four of the top six ranked and they have won more tournaments outside of the ryder cup. 14 tournament have been won by european players. three of the majors have been won by that squad. the u.s. squad, only eight have been one and only one major. what we've got to remind ourselves is that golf is a sport is in a freefall. that's how many people are fearing it. since tiger woods came to the and itout a decade ago became a sexy sport. we have seen participation fall. we are seeing tv ratings go down as well. this has hit businesses. if you look at dick's sporting-goods they had to fire golf pros. adidas is restructuring. >> tailor made. >> they have to do something to again, thisetite idea of rivalry between europe and the u.s. is not really getting us to the tv screens. ?> what about social media how much hype is there? roostope is ruling the when it comes to social media and who has the most presence. we have more than one million likes on facebook. we have rory mcilroy

biggest risk is what might happen in europe the. >> dan, would you be buying europe? >> we're a little cautious in europe on one hand. valuations are looking attractive to the u.s., but there's still uncertainty. while it's too early to say that's been resolved and we can confidently go back into the region. >> peter, we've got u.s. value ages currently forwarded around 16 times pe. what sort of level of earnings do we need to see to justify that? >> well, i think that earnings growth is going to be positive, but is slowing. we're around 6% or so probably justifies that multiple. and the difficulty is knowing what really is different from the multiple in a world where you've got close to zero interest rates. some would argue a lot higher than we're seeing today. i would agree that valuations are not excessive in the u.s. one thing i think makes europe perhaps slightly more interesting despite the uncertainties of the current situation in russia and ukraine is that valuations are a lot lower. of course there are differences between the two markets in terms of the struc

all of these people across the mediterranean to seek refuge in europe. they tell people what happened to them in a bid to drum up support. many people and kreuzberg, which already has a big immigration population, are on their side. >> it's not about wanting more. until now, we demand our basic right. freedom of movement is basic right for every human being. >> but the refugees also face opposition. this summer, the police raided a disused school that refugees had squatted in for months. the squatters had refused to leave voluntarily. the authority -- the authorities called in the police, and the refugees called and the refugees called in their supporters. peaceful protest turned into a tense situation that lasted for weeks. now security guards check ids in front of the school. authorities do not want any new refugees to move in and certainly not the media. >> what about the camera? >> adam enters by himself. with a cell phone, he films the remaining medical hard-core of the school squatters, angry at berlin's politicians. >> when you clearly think about

it cut europe off from the rest of the world. europeans had to fight 12 year long war without coffee and there were a few other things they missed as well. british counter-blockade cut europe off from africa, asia and americas and fundamentally threatened america's economic development. from 1803 to 1812 american shippers, merchants and traders made a lot of money being the last carrier, last country that could carry goods from french  to europe through the british blockade. they were also trading with the british. neither the british nor the french treated the americans particularly kindly. the british would arrest their ships and send them before a court and napoleon simply burned them. but the american government thought napoleon was less dangerous than the british. or indeed, less dangerous to their interests. the continental system, not this continent but the european continent, was beginning to destroy the economies of other european states. napoleon protected france from the economic war by asset stripping all of the conq

volkswagon gets most their sales from europe. i don't think this is enough to fix europe's problems. generally speaking when you look at an index like this, "options action" prices tend to be less, i'm looking at specifically the germany put. this is a dollar trade. if you get a pullback, you can look to get profits or roll trade only if the market continues upwards unabated on the bullish move we have seen if that persisted with this trade not having to work out. >> would you sign a buck on the trade? >> probably not. i have done this, even with applied volatility low for index or an etf on an index like ewg, you pay want to look to make it a calendar and finance it. it's not a single stock. you're not going to have this 5, 17% downmove. it will grind, if you do the calendar, it offsets the decay and the time tom me i think you got to be careful with something like an ewg. it doesn't move a whole lot. >> that's a fair point. we're not buying an option that ends next week. the longer dated "options action," maybe january isn't th

this is a map of cold war europe. so in summer of 1989 the beginning of the end and the eastern politburo didn't recognize this quickly enough. the beginning of the end came when hungary decided to allow hungarians to cross into austria. and started taking down border fortifications. in the first instance the hungarians prevented east germans from leaving. there was an existing treaty between hungary and east germany and the hungarians at first respected it. as a result of financial inducements from west germany, in september, hungary decided to let east germans leave as well and they flooded out in mass numbers. this is perhaps a telling photo. this is a photo from the east german secret police archives. this is a photo of abandoned vehicles. they had to go down to the border and collect these. east germans would abandon these when they fled to the west. people waited as long as 16 years to purchase these vehicles. and so abandoning it was quite a dramatic statement and there were so many of them the secret police ha

centers program on global europe addresses vital issues affecting europe's relations with the rest of the world through scholars and residents, many of whom just arrived yesterday. seminars, international conferences, and publications. these activities cover topics such as european energy security, europe's role in setting global standards related to governments and human rights. today we're focusing on a problem that has not existed in some years but is heating up again and that is the issue of sesession, notably scotland on the eve of the referendum for independence.uññxykiÑÑtxi this referendum will occur on september 18th and will decide whether the country will be the first western european state in secede. the only large-scale representative comprehensive survey in research in scotland will show where the general wisdom of the scott's attitude toward the referendum may be empirically wrong, after showing where the polls stand and what we may expect as polling day approaches, this talk will focus in particular on how the attitudes of scottish people towards international affai

juxtapose that against europe. this is the europe index. france and germany and italy and spain. not all is good long term. it is a high in 2000. it's 2007, a lower high. it didn't even get back. you have this circumstance, europe is not even close. and now not only is the long term not even close, the here and now is starting to diverge. take a look at these charts. this is europe again. this is on a near term basis, the past 12 months. we're starting to get real divergence now. the long term underperforming. the day to day is starting to come apart. let's drill down into the big player here, germany. this is an etf, ewg which tracks the dax. and look at this lie verge ediv. here's how we would this. here's the track itself. we have thrown back a bit here. we would fade this throwback and i think what you're going to get, here's a line, here's the breaking trend. think what you're going to get is about a 10% decline back into this support. i'd say be careful and consider this a place to be taking profit. >> that's considerable, 10%. >> you can't get short something like this int

i think russia probably needs europe more than europe needs russia in terms of where trade goes, you could argue. >> but i think the smaller european nations were looking for clear leadership from her and didn't get it over the weekend. >> i think you have a point there, yeah. >>> moving on, the results of the latest addition of the cnbc global council is whether we'll see a stock correction by the end of the year. there's no consensus from the year, but there's an even split looking somewhat unlikely or somewhat likely. it's a fairly even split. the tax emersion deals are one of the deals from the previous quarter. the ceos want some reform to the u.s. tax system while a third are neutral on the matter. and earlier we spoke to the head of finance who said gray areas in emerging markets are putting off investors. >> in the u.s. the tax rates are quite high compared to the rest of the world. and the tech world is very complex. whereas i look at the emerging markets, indonesia, brazil or turkey, on the gray area creating a problem and attracting investments. and i believe post-election

the center's global europe program addresses vital issues affecting europe relations, europe's relations with the rest of the world through our scholars and residents, seminars, international conferences and publications. these program activities covered european energy security, europe's role in setting global standards relating to governance and human rights. i'm delighted to welcome today's panelists to this presentation. claus welle and anthony teasdale. let me introduce both of them. they are behind this important new study that we will talk about today on mapping the cost of non-europe. really, a study showing immense research on the benefits of integration of european integration, trying to put this in very real, specific practical terms. and with that setting from the european parliament's side, trying to set a policy agenda for europe. let me just say a brief word about our two speakers. then i will turn it over to them to talk about the report. klaus welle has been the secretary-general of the european parliament since 2009. prior to that, he has held a number of positions with

europe to across solicit opinions. i am more interested in audience reaction been to eric schmidt's reaction. the audience reaction, if it goes south and there is real anger, is going to be difficult for anyone, let alone aaron schmidt, to contain and tamp down the anger. >> interesting to see how choreographed it is. going tohey are not want that. how much control you think they actually have? >> right. i don't know if they screen people before they are coming into this town hall. clearly a lot if europeans are upset about google. we will see it comes out. >> thank you very much indeed, hans nichols. caroline hyde. that wraps it up. "surveillance" is next from the u.s. apple day, they will talk about apple. we will talk about apple over the next 24 hours and again tomorrow. follow me on twitter, @guyjohnsontv. see you tomorrow. ♪ >> this is "bloomberg surveillance." strong it the draghi dollar. the dollar is ascendant. apple unveils new toys. think deepaught -- value. good morning, everyone. this is "bloomberg surve

europe. there are issues that probably will not be addressed in birmingham but to their ongoing. beyond that, the other cities in the u.k. are faced in london, one in five people last of them living wage. of the issue shared by other cities are shared by london. >> a give us your thoughts on away just. this is not just a question. -- give us your thoughts on away es.t -- on wag wages are pretty sluggish. >> the you are right. needs to seeide more momentum. the best way is to have a much longer economic growth. reflection we have been in the past six years. instead of unemployment and rising sharply as most economists predicted, the shock absorber is not employment but wages. wages were low. on top of that, energy price and inflation. it has made in the cost of living a big a problem for people. as the economy gather more momentum, wages are likely to pick up. to start expect wages picking up. of the preoccupations into this conference center as politically speaking the threat of the business

europe is cutting rates, the u.s. is gearing up to hike them. what happens when europe and the u.s. move in different directions? >> and ready to pop? a look at some of the stocks analysts think can rise 20%. we have that and"nightly busine thursday, september 4th. >>> good evening, everyone. welcome. thanks for joining us. stocks edged a little lower into the close today, but things didn't start that way. the dow and the s&p many 500 both hit record intra day highs driven by a big jolt. who is that? who what is that? head of europe's central bank and today in frankfort, he took steps that electrified markets in europe and for a time here in the united states. he slashed interest rates to fresh record lows, nearly zero percent and announced some federal research-like bond buying stimulus measures to boost the struggling economy, but the droggy jolt faded. unemployment claims and private play roles were weaker than expected. the dow down eight and nasdaq lower by ten and s&p off by three. the dollar rose as the eros fell to a one-year low dipping below $1.30 for the first time in a y

what is the impact on europe and on the competitiveness of europe? that is where i see some additional impact. >> everybody has their sense of timing on this. something thek is markets are not pricing and. the elegant -- the elephant in the room is litigation risk. if you listen to my interview earlier, it is simple. you need sovereigns to jump on board to make mario draghi's policies were. >> we have a lot to get through in terms of the fed. nice hotel. this is right up in the hills behind zÜrich. it is pretty amazing. privacy is key. over 200 family offices from around the world. europe is trapping -- trumping the u.s.. billionaires, 155 new ones. $7.3 trillion. they come together and they talk. what an amazing forum. talking to one another, doing deals and coming up with ideas. europe trumps america for billionaires. good news all around. much.nk you very edmund -- and to went. -- edwin. the great rotation has started. another great month in september for bonds. i think it is a little bit premature. from what we said about janet yellen, she will

what does europe do to get more aggressive with russia, given energy. >> europe has to do something to counter russian aggression. it tried to do that through sanctions. on the other hand, the more it implements sanctions, the more it countersanctions, and if this continues, ultimately down the road russia can disrupt the supply of energy to europe, and that would unambiguously tip both russia, and europe into recession. this is a lose/lose situation. it is yet another reason why people are worried about the economy in europe. >> should we be worried about containablon to the united states if that happens. europe remains as a group, partner. >> it is. it is, as a reason, the biggest economic region, you cannot be a good house in a deteriorating neighbourhood. in the global neighbourhood deteriorates, the u.s. would feel it. let's talk about what makes people prosperous. half of america is invested in the stock market, more americans in the housing market, upward of 60%, and we have seen a run up in home price values. let's talk about interest rates. at some point interest rates are goi

europe was far more important than north america. the idea they had any offensive plans here is untrue. throughout the war, more british troops in the west indies than defending canada. the political power of west indian memphis ants was far greater than political interest in canada. west indian commercial interest saw admiral warren replaced by vice admiral cochran in the spring of 1814. he, too, will feature in the war. as peace approached in europe, the british foreign secretary told europeans he would not discuss maritime belligerent rights at a peace conference. blockade, impressment. he told americans the same thing. these were the bases of power. as a small, weak state, it maximized the strechngth of its navy. british naval power kept apart and condemned matters into a solitary conflict. once americans had taken maritime belligerent rights off the agenda peace could be discussed again. a town in belgium occupied by british troops, they might as well have the treaty in britain. americans resorted interesting mechanisms to defea

is going to be the engine of europe -- growth. are key people who desperate for yield, and a very large market in europe which has died. it is a perfect way to kickstart that lending. of approval from the ecb and i think that market will be very politic for growth in europe or in. >> that see other thing, we learn just how popular these target lending operations have been. that mario draghi playdom blinder during this crisis because he basically had -- he had made rates move in the euro zone without spending a penny. when you look at the amount of money that the bank of england and they have thrown, he said that mario draghi had played a good set of cards. aboutis are ready talking the euro and the fact that it is strong. we'll obviously, it has been awful coming out of europe for the last month. but it has weakened so much. that was the one headwind, the strength of the euro, now we have seen it fall substantially. >> you keep that momentum. waslongest running losses 99. but to keep that you have to deliver. he's never actually d

the best thing that can happen for europe is really two things. wounld would be the rest of the world continues to grow. that will help them through stronger exports and help turn things around there. and they have taken a lot of steps for fiscal austerity in the past few years -- >> so they have some room to adjust -- >> i think -- if i was the so cared czar if you want to use that term here, i would let up on some of that fiscal austerity. and frankly they have done some of that, but they could do more. >> there is nowhere else to go with interest rates when you basically hit zero. this isn't 2008 when the whole world is suffering. jay good to see you, thanks so much for being with us. jay brie soon. >>> american and nato need some other countries to pony up if they want to stop russia, and how nato is wrestling with a get tough policy. in that and more when we continue. >>> it's been a very busy agenda for leaders of nato in whales today. ukraine tops the discussions as nato leaders made pint of showing unity with ukraine against russia. ukrain

while china and europe are well in line with europe. >> 12%, that's low. >>> still to come on the show, he's a billionaire but alibaba's chair is still the guy who only earned $20 a day. >>> and we're expecting a lower opening across the board. we'll be back in two. , our fina. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. >>> welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. >> investors are waiting on mar mario draghi to defend his latest plan to u.s. lawmakers. >>> and tesco is issuing a warning after a profit error is discovered. >>> and alibaba exercised a plan to buy more shares to help meet surging informs or the demand. >>> and from main street to the executive suite at

vision for the next europe and with an investment. another story we have been closely following is a battle between air france and their pilots who have been on strike since monday. the carrier is planning to drop plans for a low-cost subsidiary outside of france. bloomberg cut up with the air france ceo. i think france will be the country i'm least interested in growing in. a sorted out their union legislation, particularly with their design. we are content to continue to grow in spain, italy, germany and central europe. growing were we are rapidly. we opened a new base and flies three times a day between glasgow, and edinburgh. where happy to expand in those markets where we see lots of opportunities. until the french sort out their legal structures and particularly their north korean , we would benions fairly slow to open and france. >> you have expressed in the about the way the pilots approached this industry. what advice would you give to the union at air france? >> i would say the policy he is pursuing which is making concessio

europe is up, last time i checked a couple minutes ago. business used to get done on the golf course. doesn't anymore. can you really justify four hours, five hours for 18 holes? nine holes are the new 18 but is it enough to rescue golf? a lot of people used to play this game. looking at the numbers last night, mcilroy has a new golf club. >> a new driver as well. >> so we are talking air france and golf. and we will talk a bit about markets which seem to be stabilizing. >> the ftse 100 down 3% on the week. >> today, signs of stabilization. >> the worst week since may 2012. big losses. no big rebounds. a classic case of blame everything. >> i believe it is. >> golf, big week. as we take a break, a picture of the markets. european equities have stayed low for the most parts. down on the week by over 3%. we are not out of the woods. plenty to talk about. if you want to talk to me on twitter, you know where i am. stay with us. guy johnson is up with "the pulse." he is not just going to talk pure business. he is going to talk about the busines

or europe. show of hands here. how many would buy europe right now? anyone? okay, joe. go ahead. >> i just think you want to go where the market isn't. they have easy money for a very long time with lower rates than the u.s. in a year from now and recovery, they're 18 months behind us. would you have bought the u.s. 18 to 24 months ago? yes. do they have less, more risk? yes. the market reflected it. you don't want to go where all the money has been made so you want to be concentrating in the u.s. and should be looking at europe now. >> fair point. >> very good. thank you all. nice the see you. thank you for joining us. appreciate it. >>> we'll pick back up on the theme of the u.s. versus europe and especially talking about strong dollar. that's all coming up. >>> yeah, the economy's surging by 4.6%. that's the last revision for this second quarter. fastest rate of three years so is it full steam ahead for the economy and could this force the fed's hand to raise rates sooner rather than later in that's within the big question all along. >>> and this mention, are you bet

there and was eastern asia knows about western europe they get through english language channels the same is true all of what happens in eastern europe we get this through edits is dead the most of the time have made up their minds about it because mainstream media are not scold mainstream for nothing so this is what and how you agree with with everyone who says this is so so so this is such a sort of stage because car let me let me go let me go to neil here let me go to neil in london yes you good yeah you know neal the last time we did a recording of cross talk we did a program on ukraine and i left the studio in my producers said c.n.n. and the rest of the world says well she is invaded ukraine and i said what. well the dead make any sense to me it all does make it and so i you know i went up to my office i went to my office and i just did a quick review where you thought and i said will someone check the russian wires for me i mean has russia invaded ukraine completely silent and then for the rest to go three or four days up until right now as we speak the invasion is going on wh

says europe needs to promote talent and innovation. >> europe has to choose innovation. europe, i the model tough situation entering a third recession, the only way for europe is to embrace innovation. by that, they will have to have more festival labor markets. they will have to do a lot of work to create local companies. there is plenty of talent in europe but the model has to shift. >> eric schmidt speaking here on bloomberg. joining me now is john a flow rate he. conferencee google in paris which is looking at this whole issue about the right to be forgotten. rome,e been to madrid, to how close are we to getting a better understanding of how europe's relationship with google will work moving forward from here when it comes to the issue of privacy? >> good morning. we are getting closer but there is quite some traveling to go through still. .ome ideas are clear compliance is never in russian. the book -- in question. the question is how to implement the general strategy that has outlined by the european court of justice and see what is in store for the future. >> in t

japan and europe on one side. on the other side, the united kingdom and the united states easing back. a quick check on a few stocks. bp recovering a little bit from yesterday. over the gulfent of mexico oil spill. up 0.3%. that gap over the united states like for like sales far worse than anticipated. look out for london stock exchange this morning. off by 3%. its biggest shareholder is selling some of its stake. it currently owns a 3% stake. selling it at 220. clearly having a bit of an impact. >> thanks for that. maybe ireland is benefiting from structural reform. that seems to be one of the ideas in europe. joining us to consider the impact of yesterday's unexpected ecb decisions is the chief fx strategist at citi, and patrick armstrong. very welcome. of gettingthe honor your teeth into deciding whether -- was itby the ecb unexpected? 51 of the 57 that we monitor say they didn't expect this. is draghi playing to the gallery? >> it was unexpected. took markets by surprise. i think that is partly the idea, to ta

europe overdid the austerity. i am not talking about the long-term need to bring down budgets and debt. if you look at the united states , the combination of economic growth and the fiscal rectitude we are now seeing means that our budget deficit is 3% of gdp which is better than the historical trend. what we see is this is a combination of policies that makes a huge different. >> k-rod he did call for the governments to do more reform as well. i wanted to pick up what you said about cynical bankers. do you think that investors are a cynical group after all the games we have seen in this global stocks? >> you have to differentiate traders and people tucking for yields. those of us who look three or five or 10 years, we are very skeptical. we are skeptical about these policies. we are skeptical on these big picture things. i would add a third reform that you touched on it, we talked about fiscal and monetary policy, what about microeconomic holocene. i have asserted that the real problem europe faces is not that th

we will talk europe after the break. europe wants to make apple pay. andhat is good news for rba good news for the stock as well. stay with us. "on the move" is back in 2. ♪ >> a welcome back. we are looking at asian stocks and the hang seng. protests- student led flared up again. for the latest on the ground, let us bring in rockland che -- rosalind chen. >> we can see thousands of people lining the highway in hong kong. it is one of the key highways into the financial district. standing,ll sitting, millon around. they are taking over the entire highway. and preventing many businesses from opening today. some banks and jewelers. people are wearing black with yellow ribbons to show solidarity to because. the numbers are growing and growing as the day goes on. people are generally [indiscernible] coming in from individual businesses and some people who paid out of their own profits. the current chief executive of hong kong [indiscernible] impact of occupy will not to be a few days and the cost on hong kong's reputation could be huge. tomorrow is a nat

it's cultural between europe and germany and germany and the rest of europe. >> yeah. >> michelle, i normally only see you when there's a crisis. i'm just waiting for the next one. i don't know why you're here. >> i'm here because i think this is ground zero for the next crisis. >> on the balcony, do you remember that, as well, with the tear gas? >> yes, yes, yes. >> we have to leave it there. i've been wrapped three times. we'll get to see some very interesting people. guys in the studio, i hand it back to you. >> steve, thank you so much for that. why are we in addition not sitting over there in lake como? that looks so attempting, doesn't it? >> it does, indeed. maybe next year. >>> still coming up on the show, core changes at michael cores, two of the biggest shareholders are stepping out. we go shopping for more details after this short break. [ hoof beats ] i wish... please, please, please, please, please. [ male announcer ] the wish we wish above all...is health. so we quit selling cigarettes in our cvs pharmacies. expanded minuteclinic, for walk-in medical care. and created p

come with me on a journey around europe. the exposure to european companies -- of european companies to russia is very significant. we have got adidas. they have over 1000 stores in russia. the stock was down 16%. there was a mere read of issues issues.d of a third of their profit comes from russia. if we take it forward into the exposures, the financial exposures, into russia. dollars ofeuro exposure. the financials are getting their relief on this potential breakthrough. back to you. >> thank you very much, indeed. let's go to wales where we find ryan chilcote. he will be traveling to south wales to join the nato summit. the word permanent has been removed from the statement on petro poroshenko's website. in terms of the timing, the fact that it has been done in advance of these conversations at the nato summit, how significant is that? >> i think it is very significant. maybe not in the sense that he is trying to get ahead of nato in any way, but ahead of the world opinion, and head of the sanctions. the nato summit is ju

right now, the estimates in europe, 20% of revenue. your are northern europe a country. they have challenges but they are enthusiastic. >> it you make a sound so easy. it and selland make it. will you be able to watch "house of cards?" >> it is one of the want you cannot watch in germany because it is license by deutschland first up it is tied up. -- sky deutschland. it is tied up. if you are living in the u.k. or states, i do not know if it is legal. that kind of gets to the challenge. you have these great hits people want to watch but they are tied up elsewhere. if you want to pretend like you are in the states, "roosevelt." if you want to watch public broadcasting, ken burns' documentary. great program. >> thank you. hans nichols joining us. >> there is a great program called "in the night garden." >> look at that one up. >> it is a kid upon this program. coming up, the cost of independence, the scottish taxpayer would have to pay or hundred 80 pounds more per -- head with aore per professor. ♪ >> welcome back. this is countdown." i am mark barton. how much would in

ukraine will be able to sell more goods to europe. but the reciprocal lowering of the tariffs has been delayed because moscow insists that ukraine is in a very good difficult position. with this new deal with europe, what will happen, the european goods will make their way into ukraine, duty-free, and then sold over to russia, and then russia will lose in the game. we will have to see if that is really the point of moscow. of course, a lot of people are suspicious. they say basically moscow is trying to sabotage the deal and that their hand in the crisis has been to neutralize ukraine prevent ukraine from moving closer to europe. we will see whether the europeans are right when they say that by the end of next week the deal would be fully implemented. i can tell you that it will be a lot of pressure from moscow in order to water down what was signed today in strasbourg and kiev. >> thank you. this is all happening as the ukrainian parliament has just passed a piece package offering three years of limited so rule to parts of the rebel

europe, we won in 2010 and also in 2012. i'm delighted toni form you that we're 2-1. >> perhaps in golf you might be. but let's get a real look at business. we are, anyway, a business show. it's not only about golf. let's look at how europe has performed versus the u.s. in real gdp in 2008. not so great. the u.s. winning there. if you look at the stock market, europe still not winning many prizes. the s&p up around 114% since 2008 versus 23% for the stoxx 600. so you might have golf, but the u.s. has the economy. >> exactly. and all eyes over the weekend to see who whips. >> we'll find out on monday, guys. in other news, plenty -- from the u.s. attorney general eric holder is stepping down. let's get more on that story. that was a controversial issue, wasn't it? >> it certainly was. attorney general is the fourth longest serving attorney general in the united states. holder served as deputy attorney general under president reagan. it was president reagan who nominated holder to be a superior judge in 1998. in a speech yester

with sluggish growth across europe, inflation hitting a 5-year low, the state of the consumer in europe a major concern for invests. mcdonald's recently reported a decline in eu sales the first time in four quarters. pharmaceuticals will also be a focus. gillead sciences, bristol-myers, abbott labs. research put out by goldman sacks th sachs expect under performing with the weakened euro under performing. >>> the dow and s&p 500 hitting new record highs today. let's check the three major averages over the past one year. pretty impressive performance. but where are the opportunities right now? dominic chu knows. he's at the nyse looking at stocks with big upside potential. some as much as 20%, don? >> here's the deal, sue. if you're looking for what stocks have the most up side potential you often look to the opinions of those who arguably know a company best. those analysts on wall street that cover those particular companies, those stocks for a living. we decided to look at the entire list of s&p 500 companies and figure out which ones have the most up side potential according to those

russia's downturn will hurt europe says mario draghi. the ecb is standing by with extra support if needed, sending the euro to a 22-month low. from excitement to anger, the reception of apple's latest offering turns sour. >>> and u.s.-led forces take aim at islamic state forces on a third night attack on syria. >>> nike getting set to report owneri i earnings after the bell. will it be a winning stock? we'll talk to an expert next coming up on "worldwide exchange." your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us. >>> appearing is trading lower in frankfurt. this after a series of snags hit the tech titan's latest software update. for more on the story, mary thompson joins us now from cnbc hq. >> good morning. it turns out that an apple a day may not keep angry customers away. wednesday proved to be a tough day for apple after a searry owes snafus led a

you talk about europe. and everybody talks about europe and what is ailing europe. and everybody says the same thing, it's these structural problems they talk about. it's a labor issue, and a structural problem. isn't it a result of an entitlement state mentality, which causes labor to become totally -- where no one can be fired. everyone has three years -- do you not see that a creep towards kshs and i'm asking you for a reason because i don't think you would stop the entitlement -- >> no. >> it's a loaded question. >> but isn't that what's wrong with europe? you cannot give people everything and -- >> this is going to come as a shock to you and all your viewers but i completely agree with you. and i'll give you one tiny tangible example. when we rescued the auto industry here we basically made them cut a lot of jobs to make them profitable again. when france put money into peugeot the condition was -- >> keep people. >> 54% of gdp in france is towards entitlement funding. you can't run a country that way. >> i agree with you. >> steve -- before we go, because we'r

the best thing that can happen for europe is really two things. wounld would be the rest of the world continues to grow. that will help them through stronger exports and help turn things around there. and they have taken a lot of steps for fiscal austerity in the past few years -- >> so they have some room to adjust -- >> i think -- if i was the so cared czar if you want to use that term here, i would let up on some of that fiscal austerity. and frankly they have done some of that, but they could do more. >> there is nowhere else to go with interest rates when you basically hit zero. this isn't 2008 when the whole world is suffering. jay good to see you, thanks so much for being with us. jay brie soon. >>> american and nato need some other countries to pony up if they want to stop russia, and how nato is wrestling with a get tough policy. in that and more when we continue. oscar winning director alex gibney talks about his ground breaking new series edge of eighteen >> these cameras that we gave them. are not recording devices, they're story telli

they didn't have the manpower to do anything serious in europe and europe was far more important than north america. the idea they had any offensive plans here is untrue. throughout the war there would be more british troops defending west indies than canada. this was far greater than political interest in canada. west indian commercial interests saw admiral warren replaced by alexander cochran and he, too, will feature in the war. as peace approached in europe the british foreign secretary told the europeans that he would not discuss maritime belligerent rights at a peace conference. blockade, impressment, and he told the americans the same thing. these were the bases of british power. brittain is a sea power, not a land power. control of the seas is brittain's only strong arm. as a strong, weak state it maximized the strength of its navy. british naval power kept the american war and the european war apart and condemned president madison to a solitary conflict. once the americans had taken maritime belligerent rights off the agenda, peace could be discussed again. a town in belgium

and europe is being talked about. we've seen the high-profile move towards ukip by voters and even some tory mps. where do you see the relationship between u.k. and europe going? you like europe. >> access to the single market is very important for the banks. a lot of banks' their whole toiness model is being able operate across the whole market from london to different countries. supplying companies across the infrom one headquarters london. that is very important. it is very important that the u.k. retains influence. the u.k. government has a knowledge of financial services. it is important that they are at the heart of europe in terms of writing rules. do wet kinds of reforms need to see in europe to make sense for u.k. business? were having a conversation about whether europe is a bad thing and we don't know what the third way might look like. reforms that key being suggested by david cameron. >> a lot of the wider in termsional issues, of banks, we are interested in growth across the eu. we published a report cou

but europe's economy is not only fragile it is highly vulnerable and there will be limits to what europe can do. >> i agree with health er. i think the question is not whether burden sharing or smart are put forward, there will be a message about sharing burdens and sharing costs. it is whether the 2% piece continues to be the particular 2 x 4 used. i think the united states and others will continue to press allies to commit on their defense commitments. what i find promising or is the pressure the press there will be on concrete initiatives that show capability. that is for something like the readiness action plan could prove out. if it is just the u.s. and the germans and the u.k. and the french, you know, that is not a great step forward for the alliance but it is somewhat reassuring to the eastern allyings. if through the other concrete steps they start to pull in capabilities from some of the other countries that are less likely contributors that will be meaningful in terms of a summit outcome. >> in the back here. >> in the light of the ukrainian crisis in central -- would be sary