tv The Pulse Bloomberg June 17, 2014 4:00am-6:01am EDT
>> siemens strikes back. it is teaming up with mitsubishi heavy to derail ge's bid for alstom. we will bring you a live news conference. >> the chinese premier kicks off his u.k. visit. >> and boots on the ground. troops toends armed help combat the growing insurgency. ♪ >> good morning, everybody. you are watching "the pulse."
we are in london. i am guy johnson. >> and i am olivia sterns. also coming up, a bloomberg exclusive. for the first time in three unveilingoschino is its collection in london and not milan. we are finding out why. brandsporsche is making -- making moves to preserve its racecar past. we will speak to its ceo as well. first, let's return to our top story. seven weeks after general electric made a bid for alstom's energy assets, a story that bloomberg broke, siemens has made a counteroffer. we have the details of the siemens did. -- bid. it is a little confusing. >> good morning. you are right. this idea that we had initially giants,ing two european one in the rail sector and one in the energy sector, is not exactly what is on the tape --
on the table for siemens at the moment. what siemens is really interested in is alstom's gas turbines. they are offering three point 9 billion euros for these gas turbines. in order to make the bid more attractive, their japanese partners are adding 3.1 billion that they would take in a joint venture with alstom, including this -- including the steam turbine business and the grid and hide your unit. another she would add 900 million euros to take a 10% stake in houston, which siemens is saying, at the moment, that there offer tops ge by about one billion euros because it contains more assets. in order to convince the french government, they needed to add something else, jobs.
they have also decided to match create 1000ee to french jobs in the next three years. >> what is likely to be ge's potential reaction here? we heard them say they are not improving the financial terms of it. what other concessions might they make? >> at the moment, ge is saying that they are not planning to enter a bidding war. of course, ge knows that with this new siemens offer, many analysts say that the siemens offer might become more attractive financially. of course, ge is not going to just sit and wait. they might improve their offer. they are setting a path and they are ready to give more concessions to the french government. what will these concessions be? we will have to see. it may be more job guarantees for french jobs, which is very important for the french government. ge'sy be some transfer of
rail business to alstom. we will have to see. of course, ge will keep looking in paris in the next few days. they have some executives in paris as well. siemens is meeting the french president in just half an hour from now at the palace. bids inill review both the next few days. >> looks like it will be a busy morning. we are looking forward to continuing coverage. thank you very much indeed. >> some of the biggest names in tech are gathering for one of the leading events in the world this week for cloud computing. ,ondon's cloud world forum always a hot topic. there are also a lot of myths out there about what cloud actually is. caroline is live at the forum. clear up some of these misconceptions for us. yes, because phenomenal amounts of money are being
poured into this so-called cloud computing. in fact, $800 billion over the next four years will be fueling cloud computing growth. that will help fuel the global economy to the tune of $6.2 trillion per year by 2025. so says mckinsey. that is the value you can get from cloud computing. meanwhile, still half of the united states do not understand what cloud computing is. half of the population begins the weather might affect your ability to use this so-called cloud. so what is cloud? , youu use gmail or yahoo! access your e-mail from your mobile phone. that is using the cloud. it is basically accessing your data from whatever device you are from. the device is just a window into your own content. it helps you and i when we want to get in touch with our friends and we are on the move.
importantly, it is setting individuals free from their desks. a no longer have to be in their office to be creative, to innovate. they can be traveling, using their own computer at home, but still able to access their documents that they have saved in their computer at work. asessing particular e-mails well. this sort of freedom is able to boost the economy. this is why the likes of amazon, , aresoft, salesforce.com so desperate to give you the software that you need in terms of the cloud. new -- this is why the chief executive of microsoft has said he has been -- he is putting cloud computing first. it is the new way we are going to work. we spoke to the currency cloud chief creative officer -- chief commercial officer earlier and he was saying cloud is not just a business. cloud is a movement, the way in which we are going to develop.
this event is showing us that very thing today, companies coming together to show the driving force that they can have and the more innovation that we can have within the start of community, setting people free because the cost of your doing business, the cost of your software and infrastructure isn't so much cheaper now that you have access to the cloud. we will be back later to talk far more about cloud computing and get those key innovations and viewpoints coming from microsoft in the next hour. back to you. >> looking forward to the rest of your interviews coming throughout the morning. i did detect a little bit of relish in your voice that that was an american survey. thank you so much >> you would have thought it would have been a british survey, considering we have the clouds and everything else that goes on. >> there is better in it to -- there is better internet penetration in the u.k. you back.g to get
>> we are fine. we know what the cloud is. we are fine. ok, let's move on. premier has begun his three-day visit to britain. he is ringing aliens of pounds of investments to the u.k. joining us now -- he is bringing billions of pounds of investments to the u.k. joining us now is manus cranny. just last week, there were negative sentiments about what the british economy means to the chinese economy and the relationship has not been great. >> there has been lots of criticism towards china with regards to human rights. what country has not broached the subject of human rights with china? this is an official state visit. there is a little bit of pomp and ceremony. the basis of this visit is trade. both leaders have something to garner here. wants to change the
perceptions and misgivings. for cap and -- for cameron, it is about focusing on trade under his government. -- to 12p 50% top 12 billion pounds. cameron will make the point that we have fallen behind france and germany. we have done more trade in the past 18 months than in the past 30 years. note, itmore serious is about the calibration of that relationship. >> slightly more high tech. >> i know you are british, but that was irony. >> we get irony. >> i just jumped on her american bandwagon. let's just get some numbers. bilateral trade, $70 billion. focusthe number three point. i know it lags far behind, but it is the number three trading partner for this country. that is what this visit is about.
>> tell us more about the deal that will be signed here. of course, there is a big gas deal on the table. for at combine the two barbecue. >> we are also exporting semiconductors. gas deal. >> let's put it back on track. a 20-yearbout to sign deal worth about $20 billion. i expect that show will also make an announcement as well. much about the rhetoric of commitment as it is about the dollars. private china's largest sector company setting up shop, doing $1.5 billion worth of investment. you have the nuclear investments as well. the chinese providing the capital along with the french. no irony here in the french own the nuclear business here in the u.k.
you have china doing the nuclear deal. yuan trading. this is about the rejuvenation of what the city of london is good at. what banks in the united kingdom are great at, what asset managers and financial managers are good at. , create this as the hub of trading for this currency. chineseestablish the instruction bank as a clearing bank. it is about getting london back on the map against frankfurt as the number one place to trade yuan and set up to do your business with china. yuan trades are done right here in london and that is what they want to establish. beef and lamb. you heard it here first. >> we will see be manus cranny, thank you very much indeed.
in a few minutes time, we will consider the conversation. looking forward to that. >> moving onto another one of our top stories, iraq, the violence escalating. president obama saying he will send 275 military personnel to protect american interests and he also is weighing wider military action. obama maintaining that there will not be combat troops on the ground. now he is sending 275 military personnel into the country. what are you hearing? what is the latest? >> do not expect any of those troops to show up in the north of the country, fighting the militants. that is not the idea. the idea is that they will mentor iraq he troops, perhaps act as liaisons. we have a lot of air reconnaissance going on. they can be an effective bridge the tween the air assets and the iraqi troops on the ground. the other purpose for these troops is to provide security
for american embassy personnel that are being relocated from baghdad to other places. part ofn the kurdish the country, or basra, which is , which isth, or among in jordan, outside of iraq. the are concerned about fall of baghdad. they are moving nonessential people out of the embassy. a lot of people will hear about the deployment of these 275 soldiers and will say, here we go again. iraq 2003 was supposed to be limited in scope. by 2007, we had a hundred 70,000 troops on the ground. it is clear that the obama administration wants to keep this very focused. >> of the violence look like it is escalating or is the situation stabilizing? >> i am not really sure. what we have is the iraqi
government fighting back. more of that. particularly with the air force, striking militants. the most recent city to fall, just within the last 24 hours. it is an interesting place. 200,000 people. not just sunnis, but also she which makes it different from the other cities in the sense that it is a mixed place. in the north of the country, you have 700,000 refugees who are now on the move, fleeing the violence and in the west of the country. and you have the united states secretary of state, john kerry, saying that the u.s. is ready to collaborate with iran inside basis to fightoc the insurgents there. that is extraordinary. as far as the markets and oil is concerned, manus was just talking about bob dudley and moscow. he also said that he did not see any threats to the supply chain
in iraq the on what we have already seen. we have not seen this spreading to the south. he does say that we should all be alarmed by the situation and the geopolitical conflict it has for the region. if you look at the oil market, oil has been giving up its gains. down again today by about .3%. some investors out there have been feeling this for a couple of days now. a little bit of bad climb up in the price of oil that we saw was overdone. >> that is interesting. given everything that is going on, oil only up about 3.5% over the past couple of weeks. >> coming up, the chinese premier lands in the u.k. more on that story when we return. ♪
>> good morning, everybody. welcome back. you are watching "the pulse." china's premier has begun his three-day visit to the u.k., bringing billions of pounds of investments. here with us is manus cranny. no, that is wrong. we have already done that, haven't we? neil is going to talk about the same thing. good morning. a lot is going to be made over the next two days, britain's trading relationship with chuck. we -- with china. you're not doing a great job.
the chinese have a problem with visas, all kinds of things. the probability of u.k. leaving the eu is also high on the list. cameron is going to spin this positively, but what does britain need to do better? >> i think manus put it well a few moments ago. some very important trade and investment potential for the u.k. economy. i think there is an argument, given the euro zone, one of our main trading partners, this undy that istagnant economy difficult to get any economic growth. if we look at what is happening big picture and where the capital flows are and where the trade growth is, there is an argument for clearly recalibrating our relationship not only with china, but with asia. china is an increasingly important player in the global economy.
it is a big investor. it wants to develop and trade and investment relations with china. it is already happening. china already has an -- a presence here. it is important to develop that and encourage the growth in exports and likewise, have a partnership in terms of investment, which is what the chinese want to do. that is going to be a key part of the talks with the prime minister today. >> for the chinese, it seems that the challenge is to let the air out of the credit hubble ubble without- b actually breaking it. they want to have their noodles and eat them. what do you mean by that? wax kind of like have their cake and eat it. on the one hand, they want the 7.5 percent growth target. they seem confident from some of their more recent comments about trying to achieve that. on the one hand, there is a property bubble of gigantic
proportions. the credit-gdp ratio in china is 230%. that is flashing bright red. you have two schools of thought. one is, do not worry about it. they will be all right. it is up to the party to successfully deflate this. risks, not just for the chinese economy, but the global economy. it is not just property, it is corporate debt. a report this week from standard & poor's talking about the scale of chinese or print debt and the exposure it of the global banking system to any downside risk. it is going to be very difficult, balancing this out and ensuring that a credit bubble does not capsize the chinese economy, which would have effects on the rest of the global economy. >> you talk about the chinese housing market. reports going on here in the united kingdom right now. both nationsty for
to be able to prick their housing bubbles slowly and deflate them is going to be something of a challenge. is now seen as being the lead institution, the organization which will bring macro changes to the nature of the housing market. it all sounds great and fantastic. slow it down without raising rates. is that the reality of the situation? >> i think that the government understands that there are a number of tools here to try and event -- prevent another house price bubble and a boom-bust cycle in the u.k. economy. in asia, for example, policymakers have successfully used macro credential measures as a way of trying to prevent property real estate speculation. it is all well-documented.
there is a huge literature with everything to do with financial regulation. it would be a compliment -- complement their interest rates. i think that interest rates should already be going up. mark carney speech was important in signaling what could be a sea change in interest rates. >> and it did trigger a big -- >> indeed. i think that whatever the reason behind this, it is important to do that. i think the u.k. economy is going to be the fastest-growing economy in the g-7. we clearly have a boom in the u.k. housing market. it is now spreading out to the u.k. regions. i think the bank of england has to take action. measures, and i would be disappointed if they did not come out with something today, i think the bank of england needs to get the ball
news comingreaking through. u.k. inflation has come through in the last month 1.5%. of let's take a look at how the pound is reacting. that is the year on year number. the estimate was 1.7. you moving away from target. the market is repricing this one. we'll tell you how the markets are repricing out some of the recent hikes. but bring in jennifer ryan.
let's talk about what this means for the u.k. economy. >> that is a big surprise. it affects what people will say about the outlook for inflation going forward. that looks like it is going to be staying below the 2% target. there is no risk of its -- inflation spiking above that. it gives the bank of england breathing space. >> that is a lot of excitement around the meeting. we have macro credentialed tools. think -- do you think we will hear? >> we have different ideas of the state of the housing market. i don't see a bubble. it is going to be a bouncing back for them to say how they will manage big pickups in prices in london where outside the capital at night -- it might not be so acute. >> there is some repricing
taking place. might change? the target is two. the backende is in of this year. it is very confusing. you think the banks are as confused as we are? if they're looking at gdp, they will see that if growth continues that will be a reason for thinking that the inflation they are attributing alongside that will be something. >> when you look at some of the other metrics, and suggested things are turning up. >> the other thing that this does is wage rushers. you still have people looking to make up for all that lost time when inflation went so far above target. >> thank you very much indeed. porsche failed to finish,
they are seeking to preserve their racecar past. spoke to the ceo and visited their factory. >> they have a storied history. since the race started in 1923, they have the most wins. 956 was the 1982 entry. they havest 16 years, set the race asked -- out. this weekend they got back in. the racing pedigree has fed into its road cars. even the suvs that make up 60% of its sales. we have sports cars with two
doors and we have sports cars with four doors. our target is to have a more sporty car in every segment. as long as we do that, we are satisfied. >> we are here in the garage at the museum. 911 is a 1960 followed by a 1965. there challenges to make sure that the future suvs are sporty and fun. there is one thing threatening the fun. regulation. political parties in europe have questions in terms of co2 regulations. they're very demanding for the car industry.
one concern they do not have this price. is $845,000. it is the most expensive car in the country's history. is as exclusive as it is expensive. only 918 were made. edition.e a limited 918 cars will be sold. two thirds sold. if you want one, you have to hurry up. hans nichols, bloomberg. like at of people don't
911. >> i went in the tesla last week. >> that is really smooth transition. the 918 is a hybrid. it is not using the electricity for energy-saving. it is using it to make the car go faster. just need $850,000 to get one. let's talk tech. downloaded.s been enables you to touch up your portrait pictures of your smartphone and tablets. you can get rid of some lines and wrinkles here and there. we have more. >> good morning. the joined by one of
cofounders. this became available. is this going to be the next thing that we will be able to facetune ourselves. >> we look at social media and it way people use the name, is being used as a verb. hopefully we're on a good track. this greatdriving business? >> is it people taking selfies? people care about how they looked online. we are based on proprietary technology that other products them have. four of my cofounders are computer science phd's. that is driving user satisfaction. >> they make photoshop.
>> photoshop is more desktop oriented. they're moving more to a subscription model. we are really mobile first. that is our first product. that is where we are. financed and you would to raise more funds. what kind of money are you looking at? we don't takehat any of this for granted. aret of the large -- people taking note. we think someone is going to do it. there is a lot of interest in it. >> what can a valuation of you looking at? we are about a year and half old. it would be online with that. ne and makingcetu
pictures look better. what is next? >> we have a full product type line. we will have various strategic considerations. we will be bringing cutting-edge technology for image ross testing to mobile. nobody seems to be doing much of that. you will be seeing more from us that brings things you have not seen before enabled on mobile by electric. >> your app is going to be on android in the coming weeks. you are profitable. that is rare. thank you for joining us this morning. what would you change on your pictures? >> quite a few things. i don't think we have time for that. i will be downloading facetune. to deal with going that too long. we are going to take a look at
what are people most excited about? is meeting up at the moment. we have the older names like amazon and microsoft. we have some of the new ones as well. they are trying to pioneer cloud computing. we will see $800 billion poured into it in terms of investment in the next four years. producing so much more data and more videos are being made. we also want to access that data. we want to get it on the move where are we are. we want to use our tablets and smartphones. bedon't will be -- want to tied to our desks anymore. driving newing is start up companies.
you are breaking down the costs and barriers of entry. you are making that infrastructure and software far cheaper to access. walkss why you have the lesforce.com.a that is why we are seeing drop box and new kids of the block giving you places to store content in the cloud and access it whenever you want. it is a driver of growth. i know that is something you will be speaking with. london is a key pioneer of this week. we need to start the show as startups from berlin and moscow and all of the other hubs that are developing. it is interesting that we are talking to partners about the amount of excitement there is in
this is driving growth here in london as well. thank you very much indeed. you've got a tech conference taking place in the 19th century industrial call. tells you where london has come from and where it is going. help --ig data show is happening there as well. >> what if london does well? we have a history of entrepreneurship when it comes to industrialization. inre are we strong innovation and where should be -- we be focusing? the paste seen over couple of years that technology is mirroring what we have always been good at. we're good of financial services.
we are getting creative services and design and fashion. we're good at retail. we're we are good at data and data analysis. now you are seeing aztec and health tech. this is all starting to emerge. well, we are seeing the digitization of what we do well. these are the companies in industries that are going to be changed. >> our secret sauce is our innovation and our creativity. this is one of the most creative hubs in the world. the mix of local talent and international talent and the great ideas and financiers that are coming here to back these ideas, this is a huge disruptor. syntax just incubated. raising $25 million. that says creativity is coming
together with great ideas. that is what we're good at. >> we were talking about this yesterday. examplesne of the few of a profitable exit. london is a great creative melting pot. there are concerns about the regulatory environment. the labor laws are the four large european corporations and they don't foster the startup mentality. what are your thoughts on the business environment? >> it is getting better. we still have the keep on the regulatory. we need to look at immigration policy. we are doing that. we are speaking with the home office to say we are promoting a great tech sector but our immigration policy is slowing us down. there are great things out there. getting people to invest in the startups. that is how the start of the years ago. now we are talking about transfers, we are seeing state
money come in. this is moving in the right direction. stock options must be a barrier. >> a lot of companies are starting with stock options. what can they do? they can offer stocks and shares. they can offer big salaries and bonuses. >> we had michael bloomberg on here. we had boris johnson on. is this a challenge? is there something that mayors are able to promote more than governments? >> this is not a zero-sum game. we are connecting to other tech hubs. having the two mayors here yesterday to tech -- kick this off, there is a lot in common between london and new york. we may be competing that we are swapping ideas across the atlantic. i was in stockholm a few months
ago. the corridors between london and stockholm are very important. there are other places like tel aviv. the connection between london and hong kong is important. >> every tech guy i talked to says they are not competing with each other when it comes to dealing with the customer. the fighters for talent. industries you would not think would be near each other in terms of meeting engineer's and they are all code, competing for the same pool of talent. how do we get our arms around this problem? it seems there is a different world of a tech landscape that we don't talk about. we don't talk about how competition it really works raab early said shortage of talent
is the biggest problem that we are facing. we have to focus on our education curriculum. that is starting to happen but it will take a while. we need to focus on immigration reform and make sure we have people coming in. we have 30,000 software developer vacancies in london. 30,000. we are building these great startups, but we are not filling the jobs. some of the startups are competing against the big guys. they are also looking at top engineers and developers and help them evolve their off-line business into their online business. you can see this is a huge challenge and we will have short-term solutions. one of the key findings, 30% of the job creation in london comes from tech jobs. >> and small businesses.
>> it is time for new energy. the company tries to say attitudes to alternative energy by raising awareness. we are joined by gary hamilton, the director of new energy solutions. thank you for coming on. there seems to be some misinformation about their about renewable energy supplies. what is the problem? >> it is education and making sure that people realize this is within their grasp. new energy is within everybody's power. it is moving from understanding energy to doing something bout it. >> how are you trying to change understanding? >> changing their understanding that they can use it. we've seen some great growth. it changes people's minds when
they for the first time understand that having electricity generated on their own building and being able to use it changes their mind set. is able toly understand and enjoy it in involved in the changing world of energy. >> people have to see that it actually works. the criticism of solar is that it is expensive and inefficient. >> that is the general concept. don't have your head in the sand. .t is able to be involved it is the right thing to do. it is not right for everybody. but if you have the right roof and you can generate electricity, why would you not do it? why would you not make your home or business more efficient in the long run? if they start generating
electricity and have the right roof, they'll be better equipped for the future. last week tesla announced they are going to install supercharger networks in england. >> it is range anxiety. power of theour journeys that we use. tesla is the high-end of the electric vehicle market. bmw just brought theirs out as well. the fearanxiety, you're going to run out of juice. let's get a quick review of what is going to come in the next hour. the first word is up next. be talking about men's
" live. is "the pulse for the first time in three moschino will show off its men's line in london and not mow lawn. >> we will have the ceo later in the hour. detailsto give you some that are breaking now. let's take a look at what the numbers look like. 29.8 is the figure that we have. the estimates were in the 35's. this is a little off the page in terms of the euro dollar reaction. the numbers int detail. >> six straight months of
declines. inthere must be something there that is generating this pop. the market is up a little bit. other waiting for some information as well. >> let's move on. some of the biggest names in tech are attending one of the biggest cloud of vents in the world. cloud computing is always a hot topic. is at the forum. cloud computing will add $6.2 trillion to the economy by 2025. are year. that is six times the amount of m&a that we have had this quarter.
says half of the population does not know what cloud computing is. think they might not be able to use the so-called cloud. content toess your your own e-mail wherever you are. that is using the cloud. getting access to your data wherever you are. this is why we have box and dropbox. new companies are offering content and data and storage in the cloud. we can do it. why not do it as an employee or a business? microsofty we have offering windows 365. have access to the key software materials you need whether you
need to build a spreadsheet or draft an e-mail. why do it changes to your desk? this can drive efficiency and the growth in the economy. it could reduce our own environmental damage. moving our work and to the cloud save business data could 87% in terms of environmental energy footprints. it in solid 880 hubs. you have efficiency when it comes to working in the economy. what are the side effects? we are getting a bit too addicted to our data and smartphones. we are becoming more stressed. that is a fascinating point. he is from microsoft. he is envisioning. i love that title.
he has just written a book about infobesity. are we being less efficient or more efficient. he is from microsoft and we will be down there in a few moments to discuss that. stay with us. back to you in the studio. >> the chief envisioning officer at microsoft. >> i have never heard about infobesity. they have come up with a new word. infobesity. >> i might be suffering from infobesity on a daily basis. >> never mind. >> manus cranny is here. he wants to talk about the chinese premiers meeting in the
u.k.. relations outking of the deep freeze. this is an official visit and not a state visit. to meet thegets queen. the differences are fairly minimal. >> one is a real invitation. 200 business leaders are coming with him. a pressmeron has conference this afternoon. reestablishing the u.k. on a level lane field in terms of investment. that very trustworthy source -- >> i like the daily mail. >> we are back on beef and lamb.
they have not exported beef and lamb to china in 30 years. >> i did not know america had the best reputation. haveth of these leaders the moments to play here. up thes to clear misperceptions and missed guidance. that is the position of the chinese. they want to reengage with the u.k.. for cameron it is about trade. the number three trade partner behind the and the united states of america. they have a lot to play in this relationship. >> this marks a very positive step. you mentioned the beef and lamb exports. there is a big gas deal. >> currency is critically
important. a 20 yearing to do gas bill. the really interesting story is this. kfort, versus fran the china construction bank will be a clearing bank. 60% of all transactions are done. 60% of the global trade is done outside china and is done here. that is something that this coalition government would want to reaffirm and reaffirm very clearly and from an oblique. >> thank you very much indeed. manus cranny. infobesity as a tie-in to the
beef. one.n also have the other >> i am going to work on infobesity. >> these are the new phrases that caroline hyde has brought us. he is the chief oracle of microsoft essentially. we are going to move on. we're going to completely change gears. more abouting to get iraq. president obama has sent 275 military personnel to defend american interests in the country. he is weighing a wider military action. ryan is in the newsroom. could we see more troops sent them? >> the purpose is not to stand
alongside iraqi forces in the trenches fighting isis. that is not how the administration sees it so far. mentorops are there to iraqi forces and act as liaisons. we have air assets up in the sky. they can be a bridge between the planes gathering intel and the iraqi forces on the ground. troopser purpose of the that will be committed is to provide security to the embassy or smell. they will be moved from baghdad inside the green zone. umbrella andbe the pocket of stability within baghdad even when it was raging with violence. they will move them to the kurdish part of the country.
they might move them into the shia part of the country in the south which is very safe. they might move them to jordan. some people will say what this is 2003 all over again. beore you know if there will 170,000 troops again. it is clear that the administration doesn't want to see anything like that. they will keep a focused approach to what they're doing in terms of intervention in iraq. they did not say they would end with 275. optionsis keeping the open. we don't know where it is going to go. that depends what the situation looks like. give us a sense of the information on the ground. what do we know? >> we are in a sort of stasis. there is fighting. data is the air force striking back at the militants. fall is recent city to
home to about 200,000 people. demographic there. the forces have been focusing on that and trying to slow the insurgents move toward baghdad. we have 700,000 refugees in the north of the country. to aare making their way much safer place. big question for markets is to what extent will this affect the oil markets. bp has interests in iraq. they don't think there is a threat to the physical oil supply. bp has a field in the south that they are trying to help the
iraqi government grow its output at. has beenthree days oil the following. the big climb of oil price we saw in the first half of last week might have been overdone. ask you. >> thank you very much indeed. up, we will be switching out malan for london. its men'sill give line in london for the first time. in 30 years. ♪
looking at is a situation where supermarket price wars have been a factor behind this. seen as well is not just in the sterling rate in the short sterling strip as well, a slight bit of repricing. the market did that strip. a januaryout what was hike in interest rates. we are now looking at a move toward a february. we will get those the back end of this week. , this seemsontext to suggest that the hike in you take -- u.k. rates will be sooner than expected.
trading at 16954. >> let's get to a top corporate story. counter bidmade a to general electric. offering something over $1 billion. nick hayman is joining us. good morning. thank you for taking this phone call so early. are you a shareholder? >> no ma'am. >> we heard from ge. they are not looking to sweeten the terms of the deal. to make extra concessions. >> i think they will work more closely with regards to ensuring that the french nuclear uses key components
in nuclear reactors has access to ge's technology. some typeu might see of joint venture for their rail signaling. are quite,t rail mentoring. the siemens and mitsubishi bid was filled with politicians rather than shareholders in mind. what you just said in terms of the ravening -- is that the game here? does this have to do with industrial logic? >> i think you have some good points there. one of the things that i think operationally is a serious challenge is it breaks apart al
stom's business. cents --ot viable .ecause they have gas turbines the servicing of those is also combined. takes awayem apart their aftermarket. is your sense that the bid is ultimately going to result in the break up of the alston group? that will be further down the road with the temperatures have cooled. to end up with greater fragmentation in management and leadership and ownership of the company.
it appears to retain ownership for part of the transaction. an implied value that is larger than ge's. ge is higher.s, ge has demonstrated its commitment to the country but also to build its investments and france. a question about mitsubishi. they are ready to build -- spend 4 billion euros. is this a good deal for mitsubishi? >> is trading down this morning. i think it gives them access to an installed base as much as anything else. they have a lot of technology
and are a major provider of steam turbans. -- turbines. i am not so sure that financially this was written around enhancing the earnings of mitsubishi operations. >> we are going to leave it there. thank you very much indeed. the chairman of siemens is starting to talk. he says the bid on the table will not dismantle that company. it would strengthen the energy business. we will bring you headlines as soon as we get them. >> condensing the cloud, we will hear from the chief visioning officer from microsoft. ♪
finance more wind turbines. generate 118ill megawatts of power. companies say the rules will deprive them of new areas of investment. help low returns on fixed incomes. moschino shifts the launch of its menswear collection for the first time in 30 years. we will have an exclusive interview after the break. my twitter question of the should guyay,
>> welcome back to "the pulse." >> i am guy johnson. these are the top headlines. the u.s. is sending almost 300 troops to increase security in iraq. talking with leaders in iran about a response to the violence across the border. the two nations have ruled out coordinated know terry action. inflation fell to its lowest rate since 2009.
the lower inflation gives the bank of england breathing space over interest rates. investors think there will be a rate hike in january. bid forns has made a alston. they are in the middle of the news conference. we are also getting further comment from them. about ge's offer. the ge offer would dismantle the french company. entire unit.g the he wants to create a european rail champion. that was one of the issues. are quite keen on
their trains. they are quite keen to hang on them. >> the question is what g comes back with. -- ge comes back with. they have already promised to secure jobs. the ball is back in their court. >> the politics may be over industrial logic. how are the markets digesting all of this? manus cranny has more. is nother there is logic known. numbers are coming in in terms of the auto providers. goldman sachs says stocks will rise by eight and half percent throughout the next 12 months. organ stanley says you will get a rise of about 5%.
go to my twitter account and i will tweak the rest of the estimates. chanceents have had the to read that first. that was the story that was on this morning. that is helping their numbers rise pretty well. that insulation hated that you mentioned, the lowest in almost four and a half years. you are paying less to jump on an airplane. less on your energy. england have of room to play on raising rates? are we over exuberant in our expectations? nine consecutive months of rising auto sales in europe.
they are coming off a low base. sales are upmind, by nine and a half percent for full sliding. the prime of sales is 18% over the past year. get some homeo sales later in the session. we will update those for you. the nasdaq is up. up a quarter of 1%. back to you. >> it is time for an exclusive. moschino debuted its menswear collection in london and not milan. let's hear from the man behind the brand. he joins us now. good morning. fashionhink of british
i think of savile row. . don't think of moschino london?you moving to >> it was important to move to london because it is multicultural. it is an incredible town. jeremy scott is wasted los angeles. we love milan. this is the for the future we need to be more international. london is the right place. >> are you going to do women's wear as well?
this is not just menswear? it is sacrilegious. >> is joking. you never know. maintain theto on the other side it is a beautiful opportunity for us. is different than womenswear. are willing to experiment a little bit more in the menswear and move around a little bit and shake it up and moved to london. been --ious iuc the two different businesses. >> we are iconic and ironic.
us, london is not to do something different. we wanted to be more international. we considered london a fantastic starting point. our opportunity is good. we can grow. >> is the men's business growing faster than the women's? fantasticexperiencing growth and more than double digits. eyes guyfrom a your with some of the looks. we're looking at some of the runway shots. guy aboutn teasing wearing a spongebob jumper. what is the point of these looks? i am going to wear it.
same as women on fashion if not more. do you believe that? >> i believe that for the future. will be different. armchair, we have a gray suit and so on. if you want to be different, it is important to have something different like spongebob. i have a bag. these are the mcdonald's looks coming up. these sell for $1000 and you are sold out. people want to wear these. a lot of people the collection.
people were the mcdonald's t-shirts. >> i saw katy perry wearing one. >> does this sell in china? how is the china market right now? >> it is an emerging market. we have to pay attention in china because they are so sophisticated. the consumer habits in china change in a few months. we have to pay attention. are attracted.rs it is important to try to pin down brand loyalty to the chinese customer. is growth in china slowing down? >> we are increasing.
we are a small business. ada had a slowdown in china and they are one of your competitors. they cited a slowdown in asian tour up -- tourists coming to europe. are market now is more. we need to catch a new consumer. we are boosting in the u.k.. talking about the desire to see more of an online business. they were talking about low targets for what they expected. had uc online impacting your businesses?
do you see online impacting your businesses? us, to affect the young customer is important. the web is a fantastic estimate. was first a communicator. the web has become important. we have the possibility to communicate immediately with all of the consumers. we are selling online. >> you talk to some of the high-end brands, they say it is to stay vehicle for communication and not selling. you see it as being of both of those. is smart.o
we have a collection where you something for 38 euros. you can buy at first. we have a lot of product. the web is increasing sales and not just communication. >> are you going to sell directly? >> yes. we have a provider. we sell directly. >> how much his business going through that channel right now? >> the business right now is increasing a lot for us. to take over the u.s. market, it is important to focus on today. downturn that we had
in 2007 and 2008, retail is more resilient. open retail is to in the united states and catch more. >> how resilient is the online business? what sort of targets do you set for yourself? they don't have limits. our expectation is to do more than double. started with the young line, we are increasing in more than double digits every year. >> there has been so much consolidation in your sector,
when will we see a share sale? ofthis is a lot consolidation. ofwant to follow this kind new consumers. we were used to speaking about the pyramid. if you see the landscape of our the topyou put the market and the bottom market. >> are you going to sell shares? >> yes. as soon as possible. thank you very much. " and weh "the pulse
i cannot even say it. about helping is people. i work in an industry that loves to talk about technology and product. is telling people what they can do and achieve. >> what can we achieve? it is a friendly term that nobody understands what it does. is doing things so that you don't have to. it can be managed by somebody else. the other side is it enables incredible services.
media. social the cloud does all of those things. andou have written a book how we can overdose on the amount of information. how do we streamline that? we live in a digital deluge. we have these devices that we carry wherever we go. information pretty much 24/7. we are in a digital society. understand that we need to help ourselves by connecting. we need to be mindful of what technology can help.
microsoft is staking its reputation on making the cloud secure. have this we kne connected world. people will have access to these services. how do we keep it secure for everybody? >> there's so much hype about tech elegy and investing in technology. you have been in the industry for 20 years. deserved?pe >> i think it is. technology is no longer anything special. we have a better personal experience with technology than we do professionally.
it has to be a little the better. people are seeing what they can do with technology. it is changing the way you live and work. that is when the magic happens. that is what is going to happen here. >> it has been wonderful speaking to. he is the chief envisioning officer for microsoft. we are at the cloud world forum. we will be back in just a couple of minutes.
>> a weakened insulation rate is coming out in the u.k.. supermarkets are cutting costs. the marketsg pricing out. >> it is time for a quick look at what we are watching for the rest of the day. we are just getting some news coming out. siemens and mitsubishi are talking about this bid. they might be the more financially attractive offer.
million cars to the garage. it is the summer of discontent as ukraine --.russia turns off the gas good morning, everyone, this is "bloomberg surveillance." it is tuesday, june 17. me isom keene and joining scarlet fu and adam johnson. to the u.k.ing over where inflation fell to its lowest rate in 4.5 years in may as food transport costs climbed. it costs less to ship stuff. the airfare for might ship to denver had been lower, that would have been nice. airline fares are completely different. >> european car sales rose 4.3% in may. we got a bunch of economic data in the u.s.
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