>> asian stocks fall after a another report shows a weakening chinese service sector. but a new year and new cuts. george osborne will set out his vision for more spending cuts in his speech later today. >> the london boat show sales. wind in theirthe sails. >> hello. i am mark barton. >> i am anna edwards.
a warm welcome to the program. are ready to deliver the stories that will drive your day. jon ferro is looking ahead. ryan chilcote is on the ground at the london boat show. >> we have another quarter of sliding sales. there is competition from chinese brands and, who better than manus cranny to talk about center stage in london. -- london? >> george osborne will set out his vision a more spending cuts in a speech and lower taxes. >> not a cheery message for a lot people in one of the fastest-growing economies in the western world. you have unemployment and -- of unemployment falling and economic activity rising. truths andr of hard
the government will not be losing the purse strings. tempering andot this is about minimizing the government's role in the economy. incentivizing and hiring more. funded bynot be borrowing and, as we start 2014, really, this is about setting this up for next year. >> it is a big year because the election. despite the improvement in the economy, the conservatives are losing some of their core support, aren't they? >> it seems so. 30% of the voters seem to have supported them in the last election and no longer back the party. one of the big issues is austerity being unpopular. when you ask people if they feel a little bit richer, they will tell you know. there are energy costs and food costs coming down.
you may say that the economy is improving to what they are facing is a cost-of-living crisis. what is interesting about that is the 30% of voters who know haver support them, they shifted because of immigration, the other big theme throughout this year. more highlys regarded when it comes to managing the economy. >> he is. millebed miller band -- and and the disastrous government that went before them. he can keep blaming them for all that and that will keep them in favor, in terms of managing the economy. it is up to labor to shift this one around. >> the british boat building industry had hard times after the financial crisis. there is a celebration at the
london boat show that began this weekend. ♪ boat show is ushering in a new year with swagger. it is not the first boat show of the air. it is the first one since the economy tanked and people appear ready to drop some serious cash. >> orders have been put in by dealers. >> they do best when the big boat makers do well. they are the for rory's of the dinghy world. then, there are the big boys. they are the main attraction. there is a lot i am trying to get my head around. britain's boat industry is worth more than $4.4 billion. exports rose eight percent last year.
that is compared with a contraction of the same magnitude the same year -- the year before. now, who is that i see over the horizon? it is ryan chilcote at the boat show and he is joining us with more of the preparations that are being made there. several there is hundred million dollars worth of boats. the most expensive yacht that you can get here is the sun seeker 40. feet.40 meters long, 130 we'll be checking at the boat and managing some of the trends. yesterday, i was here and they were watching me like a hawk. today, is just us and the hoover's. -- it is just us and the
hoovers. then.e us the lowdown, >> i was asking about this. it is like asking about how much you should spend on the wedding ring. the answer is, one month's salary. millionant to buy $27 yaht you have to have money you are willing to lose. in the first year, you can expect to lose 30%, unless you get the first or second. you have to maintain it, even if million,fford the $27 you have to have the purchase price to keep it going because you do not drive these shots.
you have to have a crew. in the case of the 40 meter boat , you have to have nine or 10 crew on board. >> what kind of buyers do you see their? there? >> usually, you get a bunch of gawkers who look aspirational he. -- aspirationally. i was struck by the number of people who looked like they were appeared to buy something. you can see all the boats really well and normally, they are in the water. you have full range right here. people were really considering. certain buyers were considering what they might buy. in terms of nationalities, there are a lot of english. there are people from the united states, mexico, the middle east. chinesetrend is the
buyers who are shopping for multimillion dollar ya uhts. >> i like the pink one. i think both for color. color. boats for smart phoneon for makers. deutsche telekom is leading the way. hans nichols reports. snowdon's bombshell, two phones. a blackberry 10 and a samsung for theere competing german government. with news reports of the nsa listening on top of the u.s. embassy of berlin, two companies are experiencing a surge in and a secured
smartphone. >> it is about security and confidentiality. what we're offering is attracted to them. code towrite lines of virtualize the android system. is inserted next to the sim card. forthan toggle back-and- between the secure mode and the secure -- the regular one. >> there's a secure compartment. seecan switch and you will it is a normal android. >> their competition is a isified blackberry that
listed at 2000 euros. they claim that they are more secure. >> the most secure best the most important thing about the nsa spying is that this becomes important. .here is value in your voice >> they have the tender to sell 10,000 devices. secret asly guarded to which device will become the chancellor's phone. >> hans nichols joins us from berlin. how well are these do technologies expected to work? >> they have the stamp of approval from the nsa in germany. they claim that they are
entirely secure. even if you hack one phone, you just get into one phone. hacking into the whole system everyes hacking into single smart chip in these phones. we are seeing a transatlantic battle. any company that has u.s. components could be susceptible to the charge that their data is not consist -- secure. some of the voters in the french are concerned about a backdoor or u.s. intelligence azz to -- agencies to suck up data. the next phase of this goes to the private sector, when banks and bankers demand smartphones. >> hans nichols in berlin. >> htc revenue. caroline hyde is following that
story. bigion week means business. manus cranny has that story. junior cannotey instill confidence in this company. nine straight quarters of decline from htc. they used to be the dominant player in 2011 and they were the biggest seller, at one quarter of the entire market. they are trying to get a new marketing campaign. i think one of them was a hipster troll carwash. loss in a four-year earnings. something a little more stylish. #menswear. that is going on in london.
designers are getting involved in the business. dolce hink of anna -- gabbana kicked off business. what does the collection mean for british industry? we will have that in a short while. it is so unique, in terms of technology and fashion. cranny.ver-dapper manus >> according to research and reports, which we have exclusive and early access to. we will talk about with the trans-we spent on and -- eye onre keeping thaan the massive store in the u.s.. the sheik -- u.s.
they missed analyst estimates for the fourth consecutive quarter. net income was $10 million. it was less than half of the forecast. bitcoin past $1000 again on the gox exchange. the threshold in november and then plummeted to as low as $600. acquiring a bruising company servicesorms medical -- a brazilian company that performs medical services. welcome back. >> at is 70 minutes past in london. is 17 minutes past in
london. in 2014, it was higher than the previous year and richard gordon joins us now to give us the headlines. in terms of the increase in spending that we will see for 2014, compared to 2013. >> any growth is good growth. market growinghe at two percent, three percent, four percent going forward. it is a good performance. more moneyre be spent? what is the story behind this increase? >> people spend money difficult -- differently. spending, asfts in opposed to growth in spending. the traditional pc market, as we know, is in decline and has taken up slack.
>> for the big themes that divides the space is the focus orientationsd toward specific tasks, versus price. you think that will be most important going forward. >> differentiation on rocks and functions are important as more phones are smart phones. wearables and that is where the device market will go. we know the trends and there is nothing new going on there. >> there is big spending over seefinancial crisis and we companies thinking that they have all pcs on desktop and what will they replace them with? what is the thinking among those who are making the decision?
will they buy more pcs? miking --e decision making process looking like? job function.he we start with the traditional pc buying and the content creation stuff. the consumer space is more about consumption and they may have a pc at home. the thing they will buy is the tablet or the smartphone. >> the tablet phone revolutionizes the workplace. >> to some extent. it depends on the job function. that people are mobile, they are out and about. >> we will talk about spending on telecom services and data se
we will see the biggest percentage increase. businessriving the analytics? a nexus ofooking for forces and we have information on big data, if you want to call it that. four --he of those getin the four, we want to better marketing messages and seeove -- not only be be to 2c but b2b. a is coming in and it is question of being overwhelmed. what you doing that?
>> companies are moving to the cloud where they store the data. >> they are and they're taking it of the business model that i and they'rerlier going towards an outsourced solution. they don't want the capital risk and we are seeing the trend quicker than we expected. >> perhaps we are still seeing spending on data being done by different people. >> is consolidating with providers -- it is consolidating with providers. not spending on telecommuting -- telecommunication services. why is that? very mature market >> get your crystal ball out.
what will make headlines in the i.t. space. -- space? \ it is a headline-grabbing thing right now. >> is there some the grabbing your eye? >> i'm not sure what we will see, in terms of mass markets. >> great. good stuff. see you next quarter. richard gardner. big publicista and a sale to stop a nine quarter slide. we will find out why on countdown.
>> these are the bloomberg top headlines. speech showthe austerity goals by reducing spending and proposing and income tax reduction to become permanent. the eu could drop financial banks andr the big investment operations. the proposals are removing the provision and it is a narrowly defined band. flights are being canceled as heavy snow hits the midwest.
some operations had just recovered from the friday snowstorm in the mideast. the worst cold front in 20 years is sweeping towards the east coast. celsius.is -13 degrees hello. >> i am anna edwards. on what is in ev.ening could noton man improve the performance of htc. they had a campaign that featured robert downey junior, of course. look at to our correspondent wes all the details on this story. -- let's get to our correspondent who has all the details on the story. 24% of the they had
market and now we are seeing htc lose more and more market shares. they're listening to the chinese in -- that are moving they are losing its to the chinese brands and sales are down when he nine percent for htc. htc.% for and a 25%ve assets stake in the headphone maker. that was not enough to offset the four-year loss, sales -- loss. sales are continuing to decline and there is a desire to try to reinvigorate -- there is no luck reinvigorating the brand. the moment, people do not want to buy the product and they have a new branding campaign that was ambitious.
it reportedly cost them billions of dollars. that came upaign with new ways to figure out what htc stand for. hipster troll carwash. they had a huge catamaran. >> thank you. >> all these campaigns and it is not working. a 5.9enormousa and it is inch with all of the new mods. theceo has been appointed global head of sales to direct things a little bit more. they need new distribution channels and cutting off costs. at the moment, the customer focus is not getting better
sales. >> carolina hide the latest on htc. >> accorded to people with knowledge of the sale, one will take up -- elliott gotkine has the details. good news for them. >> it is not bad news. it must be good news. they have parted ways with the chief executive, jeremy levin. there was a spat over the restructuring plans. advantagesfew big and they said that he is a board member. he is a seasoned executive and formally they had of strasburg -- head of strasburg. largeste of the
agrochemical makers. is well-known to the investment and business community in israel. the trick will be to translate that over the lake and to the united states. that is where they have most of their shareholders. new chiefts a executive and the challenges remain the same . hat.me woman, different the main challenges that face the multiple sclerosis drug that could face competition as early as this year. if that happens, the question will be how easy it will be for companies to get a copy past regulators. of that, they have
been undergoing restructuring and lance to reduce the workforce by 10%. that was the reason why there was a disagreement between jeremy and the board. there are also shares that are performing terribly. they are hovering around a six- year low. vaey have talked about te being broken up. side, he has his the support of activists. he has been advising others to do likewise. >> thank you. >> what did your chemistry advise you? >> step away from the bunsen burner? [laughter] >> he taught me to listen. >> good advice. >> good advice.
>> international fashion be taking center stage this weekend. a stylist sector. >> menswear gets its own show and three days of 130 designers. menswear is worth 11 billion pounds. you can't employs one million people. . fashion employs one million people. david was present and is one of the brand ambassadors. --comes to the business, when it comes to the business, they have pounds of media interests. and christopher cain.
it is by appointment only. u.k. will be the home for menswear. we will see their range tonight and nick is a cool dude here. the radio dj of the year. bring on the voice. -- boys. front ands seen as center, and terms of technology. plus, youwith google will have a front row seat at the catwalk and everybody involved in the top brand will be wearing little cameras, rapher cameras.
a lot of the excitement is about what goes on behind the scenes. isn't that right, anna and mark? >> behind the scenes at the you. everybody is filming >> the point being, you can buy and transact live. you might see something cool. not that i can wear anything like that anymore? >> there's a moment that comes. >> what is that moment? barty? know, >> my never came in the first place. wise. transition, fashion -- fashion-wise. >> we will move on. andaking the temperature weete taylor it's -- didn't
they gathered up pictures and saw at anyone was brave enough to test the surfing conditions. a new year and a new way to dispose of the christmas decorations. hosted the sport of christmas tree throwing. people competed for distance, height, and flinging. satellite ison designed and built in the country to market the largest triumph of the indian space organization. welcome back. i am mark barton. have you just posed of your christmas tree? quarks i did not throw it anywhere. -- iket to the allocated took it to the allocated collection point.
we will not go there. on the move is off at the top of the hour and francine lacqua joins us. happy new year. new year. we haveare changed and pmi and the service industries in the euro area. you can see futures are a mixed bag. also see the data that shows chinese manufacturing falling. we'll keep an eye on china today. click that has weighed on the market. -- >> that has weighed on the market. >> they lower the recommendation on the stock and another one that we do not talk about is
elect out. they make radio surgery equipment. on the move will try to identify the industry groups that will be your best buys and best picks for 2014. >> will the banking sector be in focus today? >> the stock may also move because of global management. we will look at the future of real estate and what spanish banks have to selloff. >> thank you. >> let's take a look at the corporate story. caroline hyde, it is a big week for u.k. retailers. there was a profit warning and they lost their cfo. it was put into sharp release and john lewis. are seeing winners and losers.
who might be more losers is coming up. that comes outnd on the eighth. there is plenty of speculation that these companies have not done so well. >> food category does ok they could be under the cost. but two are out there on the street before christmas. we were out there on the street before christmas. the fact that they want to be itwear, many feel that you could see tesco falling. quarters, it might come to an end. >> it might. it is being pushed on both sides. the discounter is eating away at
market share. >> thank you. >> jonathan ferro joined us to talk about the macro things. >> coming off the back of china, the services number is a bit of a disappointment and expansion is about momentum. the other focus will be out of the u.k.. services make up three quarters of this economy. it has been punchy, that data. a lot to watch and we are data heavy. >> anything above 50 is expansion. central banks are a focus this week. ofin the first weeks trading, you have the ecb, the bank of england and some speculation that the bank of england could lower the unemployment threshold.
there is talk about that. i'll that the bank of england would jump to change that anytime soon. credibility is a big issue. that the banknk of england would jump to change that a time soon. credibility is a big issue. they have repaired themselves to say that when they get there that it will be a threshold and not a trigger. that is in the ney will try to reinforce. >> thank you very much. >> coming up, ben bernanke and setting the tone.
>> welcome back. time now is 7:51 and the market participants are positioning themselves for major economic data. let's get the perspective from the markets. happy new year. good.eeling they missed the data at the retail sector. >> it will be the big focus this had and u.k. retailers have an estimate of profit warnings.
retailers have big focuses and i think the macro themes this week will be the driver of .he ecb and the meetings outcome was kicks off the earning season this thursday. who didems that those not havetoo early did a clear and concise internet strategy. >> i think that was the key for a lot of these retailers and the theil sector in the u.k. is ands of dixons likeetionary companies, the likes of amazon and other giants.
they are also suffering, as well. strategies and i think, going forward, it is about the online strategy and having a restructuring of the business. >> i hate to write up the whole week. if we can jump to friday, what can we expect to the -- from the payroll number? >> it will be in line with consensus and a confirmation of the fed plan to start tapering this month. stronger, aything lot of people will start get the that we will and the bond program by 2014. the bond program by 2014. >> the bank of england and the european central bank. matter will the
arise from those? >> there will be no changes this month and i don't expect any. ecb will be a bit tricky and there will be the issue of deflation and the unemployment rate. that will be the big focus. we willbe stronger and see a deeper contraction in some of the markets that will be interesting. focuset yellen will be in te.the 15th federal reserve >> will she change things? >> the markets will be responsive and well can -- welcome janet yellen going
forward. has had ane optimistic view about the u.s. generally, there has been a cover mission on forward guidance and the u.s.. are your clients telling you and what is the buzz out there with equities between this year and last year. 2014?s the outlook for i think we will continue to see strong gains in the u.s. equity markets and pick up european equities. we see good numbers and and i thinkst week that will be all about the car
>> welcome to "on the move echo i am francine lacqua at bloombergs european hagler is in london. we are moments away from the start of european trading and our markets team has everything covered. here with me now, jonathan ferro, caroline hyde and our markets editor manus cranny. ryan chilcote is also standing by. .et's kick off things with you futures, undecided. >> undecided. what we have got here is disappointing data from china. talk about the jobs report, a few fed companies over the
weekend. we have got to look at these numbers very closely. it is all about payroll and china slows down. >> keep an eye on mining stocks and we will go through the chinese implications later on in the show. the chancellor of the u.k. speaking letter. >> with we can expect, happy new year, get set for some hard truths. cuts to taxes but cuts to spending as well. there will be no borrowing. he wants to minimize the state patrol in this economy. do not expect them to pull back on austerity. >> thank you. let's head to ryan chilcote at the london boat show. what is on the agenda this year? >> selling boats. that right there is some boat beingand-new shown at the show. that will set you back $3.5 million. there are dozens of them including a 40 meter boat which
million.rting at $27 good news is the industry is up. sales are picking up. it is what we're going to be discussing with the head of the british marine federation later in the hour. >> ryan, thank you so much. money is a little bit steep but i can see us on that. >> definitely. sales not picking up for retailers. maybe in the luxury yacht department, not so much for marks & spencer's. christmas figures later this week, speculation this weekend has not been very positive. hams out last week with a profit warning. are we going to see a squeeze over christmas? the market is really worried about that. . cap >> we will continue to keep an eye on the u.s. where more than 9000 fights -- flights have been canceled over the last several days. more than 1500 flights were
canceled at chicago o'hare airport. the region is also bracing for another blast of bitter cold that could break decades-long records. we have futures looking at china. we are watching retailers. we are watching the chancellor. but also we watching? >> services in the europe and u.k. and interest rates. what will futures traders do with u.k. interest rate? they are already betting that rates in the u.k. will be at 1% by almost this time next year. as francine said, it is a fairly muted opening. we have the core of europe getting ever so slightly. the dax rising by 0.3%. commerce bank rising by 0.3%. nothing that dramatic there. you will get the european services data. italy and france are set to contract.
the u.k. is expected to have a pretty strong run of numbers. cfos are the most optimistic in 3.5 years in the united kingdom. risk appetite is at a six-year high in the u.k.. all of that could translate into employment which can translate into those knockouts for the governor of the bank of england in terms of the 7% unemployment level. what is driving the market? we have got -- they had a tortured time in the close of last year in terms of positions -- provisions. it is about some of the retailers. marks & spencer's, we will tell you what their numbers were as we've gone up -- run up to thursday. the market is expecting marks & spencer's to deliver a look kind -- flat to negative one percent. there is a couple other stocks
that i thought we should have a quick look at. complex, copper coming down. inventories are dropping in london, shanghai and new york. we haven't seen that since 2012. gold, traders the most bullish since december, 2012. crude oil rises about 0.25%. you will get more u.s. data later on today which should prove interesting in terms of the growth. tesco rising by 0.6%. where did you buy your turkey? back to you. >> did you go to tesco? the question of the day from ennis cranny. our next question -- guest says the beginning of said tapering this month will have a limited impact on equities. a a chief investment officer. great to have you on the program. thanks for coming in.
year is it going to be the of central banks? will you see a divergence? >> it will be a year in which there is intense focus on central banks. it is going to be a year in which we begin to think about when the tightening process is going to start. last year was the year of the easing process and doing -- ending. in a years time, we will be thinking about 2015 -- that is probably going to be a year in which some countries and restraint are going to go up. >> for the moment, tapering is my tightening. >> tapering is not tightening. tapering is easing less quickly. >> when do you expect investors to start panicking about tightening? >> i don't think investors will start panicking about tightening. i think there will be a fitness in the investment markets between looking towards monetary policy and easing to driving thegs, to starting to get
stimulus from actual economic performance and corporate performance. adjustmentt is the in psychology that needs to take place in equity markets. bond markets are much tougher. higher short-term interest rates mean that their market in bonds is likely to continue. >> you have the u.s. and the beingasically easing off very loose with monetary policy. you have the ecb and the bank of japan doing the contrary. what does it mean for investors? japanfar as the bank of is concerned, it still needs to validate its policies and it still needs the reaction of the economy. there is a fiscal tightening coming up which is going to hit consumers. i think there is a bit of a question mark over how the japanese economy is going to perform this year. that will maintain pressure on the monetary authorities to maintain a relatively easy start there. in europe, there is going to be slightly more difficulty. countries like germany are
seeing a pickup in momentum. in southern europe, momentum is better than people had expected it to be. if we think about a year ago or 18 months ago, i think the problem economy within the euro area is france. >> we are going to talk about france. industry groups in china. what is your biggest concern overall? >> it is definitely france for the eurozone. of the it is the balance world economy and how people's expectations are going to emerge. at the moment i see this as a western-but growth cycle. u.s.-led is most important within that. >> end-user much for now. -- thank you so much for now. here is a look at what is coming up on "on the move." competition cuts into htc. even iran than can't reverse the sales slump. the battle for mobile. which tech companies are hoping
is on the move. rsa insurance. it is gaining some 5.3%. was on the most preferred list and we have an article in the sunday telegraph saying the rsa review by pwc sees no more write-downs. a little bit of good news for rsa. the u.k. chancellor george osborne will set out his vision for more spending cuts in a speech later today. he is aiming for lower taxes. for more on all of this, let's bring in jonathan ferro. what are we expecting? >> i think this is really about setting us up for the year ahead. we are living in one of the fastest-growing economies in the developed world. unemployment is falling, economic activity is rising. what is in store for 2014? it is time to face up to hard truths according to mr. osborne. 's you thought the government pursestrings would be loosened, you were wrong. austerity is here to stay. we expect to hear from osborne
on a whole host of issues. the question is, how do you fund? not by borrowing, but by further spending cuts. >> looking ahead to next year's election, despite the improvement in the economy it appears that the conservatives are losing support? >> this is key. in some polls it certainly shows that. one recent poll shows 37% of voters supporting the tories in 2010. no longer. austerity has not been very popular. ask people if they feel a little bit richer -- many will answer no. labor, the opposition party believe we are in a cost-of- living prices. -- crisis. they are losing half of that 37% to the anti-european party. this is centered around the immigration issue, an issue that has become incredibly politicized but one which is a big concern for many people in
this country. expect some comment on that from mr. osborne today. this is about setting up next year's election. >> interesting. thank you so much. still with us is richard jeffrey. sayingthe break you were that france is your biggest concern for the eurozone. the u.k. seems to be full speed ahead. >> there is an interesting contrast between france and the u.k.. in the u.k. we have taken the right policy measures to try to stop government crowding out the private sector. to encourage the private sector back into wealth creation. that is beginning to work. i don't think we should get too excited about the u.k.. we are not going to get back to the sort of growth rates we saw before the recession. they are a long way off. we are going to see growth. we are going to see employment creation. the key for 2014 for the u.k., are we going to get back onto a more president of productivity -- positive productivity cycle?
in terms of france, i think the government has yet to get to grips with short-term cyclical policies that will start to stimulate activity. it still looks like an economy which is more likely to back fly than it is to make progress. >> what happens to france and the longer run? is there a danger that someone from the right wing comes in or is it going to get worse in terms of economic standards? >> i don't want to make any political cause. france is a decent manufacturing economy. for that manufacturing sector to start to prosper, it has got to get better domestic demand growth coming through or it has got to be able to rely on the international economy. at the moment, it is not finding a stimulus from either direction. >> talk to me about industry groups. the tech year was 2013. he saw amazing valuations in ipos. what is 2013 -- 2014 going to bring? >> people are going to be looking at stocks that are going to benefit from sustained
growth. we are really through the cyclical recovery part of the stock market cycle. nady some more of that to come. i think what investors are going to look for is more obvious growth. we will remain with technology to an extent. >> keep it right there. even ironman isn't saving htc. the taiwanese handset maker posted operating losses after reinvigorating market campaigns. caroline hyde has more. competition continues to hurt sales at htc. >> it continues to be the chinese rivals, lenovo, huawei that are just eating into the market share of htc. cast your mind back to 2011. htc was the biggest smartphone manufacturer in the united states. it had a quarter of the market. the fall from grace has been phenomenal. sales down 29% in the fourth quarter. they're forced -- first full-
year loss. of this fierce competition coming from the likes of the chinese. even the sales of its stake in beats, the headphones maker, it earned them $265 million but that wasn't enough to offset the loss. >> the company has been trying to turn things around but so far no luck. >> you mentioned iron man himself, robert downey junior was employed. he has a two-year contract to be in advertisement for this company. to change the adverts on your screen now. a hot tea catapult? it was just trying to get a cool factor back for htc. that plus the new product hasn't been working out. this is the biggest phone to date for htc. 5.9 inches. fingerprint sensor.
none of it has worked out for them. they even put their cfo, now the head of sales, trying to get new distribution channels out there. overall, it is just not working. this beautiful phone you see in front of me which has had amazing reviews, seems to be one of the best out there, it is not persuading us to go out and buy. >> 2014, isn't looking any brighter? >> analysts say no. competition isn't going to get any better. analysts saying 2014 could be an even worse year for htc, even worse than the 50% loss you saw in 2013. fiercer competition is still going to be there. it is not going to be enough to offset this concern and they are not going to get the repeat sale of beats at 25% holdings. ,e could see further losses further erosion of sales. back to you. >> caroline, thank you so much. let's get back to richard jeffrey.
aboutd, we are talking technology stocks. on the mobile, smartphone sector, it is not only crowded -- it is brutal. >> it is very credit. have you bought a mobile phone recently? there is not a lot of difference between the technology that is offered by sony or samsung or htc or the dreaded iphone. what it is all about is content. that is i think my media is interesting. it is media companies providing a lot of the content. that is where the differentiation is going to come, not necessarily in the hardware. we are not looking for a big techlogies change. >> it is basically content is king. the apps, the media that you look at on your smart phones. is that where investors should be? >> absolutely right. it is where investors need to be positioned. tois not always obvious how play that. a lot of the content is provided
by quite small companies. it is a more difficult area to invest in. i think it will be a profitable area. >> what is your take on retailers? they had a tough christmas period. >> in the u.k., the retailers have had a reasonably tough christmas period. not across the board, you can buy john lewis, they had a pretty good period. there is strong differentiation between performances. -- to gete back to too excited about growth prospects. these are not economies that are off to the races. a our economies that are growing. the obvious constraint on the growth in the u.k. and in the united states is household incomes are still growing in a fairly restrained fashion. >> talk to me about spain. we had some pmi services for septet -- december. it were pretty stellar.
spain is on a good track. we had news that they are selling off real estate. are there opportunities for investors to estimate >> certainly. europe,outhern investors are going to do reasonably well. as i was saying earlier, it is southern europe in a sense which surprised people last year on the upside. it was from a low base, but from that low base, growth is coming through a little bit faster than people had anticipated. there are some good news stories around for investors. >> richard, thank you so much for coming on today. taylor -- teva may name a new ceo this month. could this be a turnaround for the struggling drugmaker? we have more next. ♪
>> welcome back to "on the move ." i am francine lacqua here in london. here are some companies on the move. htc's posted net income that missed estimates for a fourth straight quarter. rising competition from chinese brands led to a decline in sales. the release of its new phone failed to stop a slide in sales for nine quarters. surged 49% inales 2013. ford overtook for you as the fifth-largest foreign automaker. the popularity of the focus
helped sales expand faster than any major competitor. amazon's jeff bezos was airlifted from the galapagos islands on new year's day. up by ancked ecuadorian navy helicopter due to kidney stones. teva could have a new ceo as early as this month. two people close to the matter of anez vigodman, the ceo israeli chemicals maker will take over. our middle east editor elliott gotkine has more from tel aviv. at last, some encouraging news from teva. news, i is not bad suppose it must be good news. the shares lifted here in israel. teva has been lurching from one crisis to the next over the last few months. two months ago it parted company with its chief executive, jeremy
levin. as far as erez vigodman is concerned, he is quite a seasoned executive. he is already a board member of teva. he is an insider. he is formerly the head of one of the largest food groups here in israel. currently he is the chief executive of the world's largest agrochemical maker. he is well-known to investors in this country. he is well respected in this country as well. the trick is going to be to translate that to the united states where teva is also listed and where most of its shareholders reside. >> elliott, even with a new ceo, teva still has a lot of challenges. >> yes that is putting it mildly. let's start with the big one, $4 billion. this is the size of revenues that teva gets from its blockbuster multiple sclerosis treatment.
it could face competition as earlier as this year. if that happens, it could make a huge dent in its revenues. shares are languishing at a six- year low following all the problems of late and concerns about competition. there has been talk of teva being broken up perhaps. all those challenges will be in vigodman's way. >> very interesting. thank you so much for that. elliott gotkine with the latest look at teva. after the break, we will head over to ryan chilcote at the london boat show for more on the state of industry. let's have a recap of today's main news. pretty good pmi figures out of spain. this is what a lot of the indices will look for. data, we then have the eurozone pmi data. ibex oneee the imax --
>> will come back to "on the move e i am francine lacqua at bloomberg's european headquarters in london. these are the bloomberg top headlines. the coldest air in almost 20 years is sweeping over the u.s.. chicago's hi today expected to be -18 celsius. snow, rain and ice will persist in several major cities. more than 9000 flights in the u.s. have been canceled over the last four days. a jet skidded at new york's jfk airport shutting the airport for two hours. chinese stocks fell dragging the benchmark shanghai composite
index to its lowest level in five months. this amid concern that economic growth is slowing. amids fell in december higher market rates. the price of bitcoin surpassed $1000 again. this after zynga said it would start accepting the virtual currency for some of its online social games. theoins first crossed thousand dollar threshold previously. the british boat building industry at a profit loss last year following hard times after the financial crisis. it was a cause for celebration at london boat show which began this weekend. ryan chilcote reports. >> the london boat show is ushering in the new year with a swagger. it is not just the first boat show of the year, it is the
first one in britain since the economy tanked where people appear ready to drop some serious cash. >> in terms of the orders being put in -- >> williams ought to know. they do best what all the big bookmakers do well, going for as much as $80,000, they are the ferraris of the dinghy world also known as tenors. the big boys are of course the main attraction. there is a lot i am still trying to get my head around. britain's boat industry is worth more than $4.5 billion. exports rose close to 8% last year compared with a contraction of the same magnitude that year before. these aren't the heady days before the crisis but they don't look too far off. >> very nice. let's head over to ryan chilcote at the london boat show with a
special guest. i am joined by the gentleman that gathered all that hard data that was just released this morning about the state of the industry. his name is howard printing and he joins me here. good morning. heard from a lot of bookmakers yesterday that they are cautiously optimistic about this year. you had some pretty dark days the past several years. >> it has been pretty tough. the challenge has been global. we are delighted by the figures released here today. a show a change in confidence. >> a rise in sales as opposed to a contraction. >> most importantly for the u.k. industry, exports increased. >> what some bookmakers were end of thee high- votes here, there is a $27
million boat here, they always do well. guess affordable luxury of the single-digit million dollar boats behind us, those are the ones that have been suffering the most. >> britain is well known for luxury powerboating. those guys have sustained their markets throughout the tough times. in the last quarter of 2013, we saw an increase in confidence in the u.k. market. boats of the lower-level are starting to sell again. >> in terms of geography, i heard a lot of people say north america is doing ok. europe still slightly coming on. was reallyunseekers excited about china. to meg of a deal -- talk about the geography and how big of a deal can china actually be? market there has been a return to the u.s. market over the last year. >> that is just because the mac
euro -- macroeconomic backdrop is better. >> i think that is the case. europe has been steady but certainly the emerging market in china and russia and india is very important to our luxury powerboating was. those people want iconic british brands. it is like the burberry coat, the range rover, the jaguar. they are iconic. worldsd it become the biggest book market? presumably it is not yet. i know that the focus is there. they have a chinese owner. but chinese aren't really buying the boats just yet. >> potentially there is a massive market in china. you have to provide the facilities. we talked to overseas governments about the need for marinas, encouraging people to participate in voting. china -- boating. china is not going to be immediate. you have to build and grow that market.
i think what you're looking for is consistency in terms of rates. we deal with the pound. it is not a problem for our guys. >> talk to me about trends with the boats themselves. a lot of focus on -- you don't have to be an expert to see, glass inside of both. >> you will see both have gotten bigger. the technology has gotten better. we want more fuel-efficient boats. -- the time, there is u.k. has got a great reputation for innovation and innovation isn't orton to everybody. >> beyond the structural stuff, phones and smart technology coming in all over the place, on both as well? fax it is one of the fastest moving technology areas.
electronics on the boat, the systems on the boat that make it more efficient are vitally important. >> we are going to have to leave it there. it was a real pressure. -- pleasure. idding.pr later we are talking to the managing director of sunseeker. biggest ofrhaps the the big bookmakers out there. i am hoping i am going to get myself a couple of these yachts. >> hopefully in the mediterranean. you have to head south. this weather is not going to do anything good for your yacht. up, it is a battle for angela merkel's handset. we look at the most secure mobile devices and which one might end up in the chancellor's hands. stay with us. we are "on the move." ♪
htc's fourth-quarter earnings missed estimates after taiwanese mobilephone maker faces mounting competition. isting me for a closer look -- joining me for a closer look is richard. great to have you on the program. talk to me a little bit about smartphones. it is a very crowded market. very difficult market. how do investors play this? do you need to go for the guys that do the media content or the apps? >> to be honest with you, even some of the applications, you can see some commoditization around that space. the place where i would be looking this year is right at the top of the chain them in the ecosystem. that is basically the glue that holds all of these applications together. it holds the user experience together, e-mail, telephone, everything. in that area, apple has got a strong position. google has a strong position. there are many other people trying to get into that space in 2014 andse
beyond, that is where the money is going to be made. companieso favorite in the tech 2014 are yahoo! and microsoft. >> that is right. that plays directory into that ecosystem thing. if you look at google, google's ecosystem is pretty well established. apple's ecosystem is pretty well established. you look at people trying to make it in the android community, what you find there is very little differentiation. very aggressive price competition and margins continuing to go south this year. why do i like microsoft and yahoo!? if you look at them, both of these companies already have in place all of the things they need in order to create a decent ecosystem? it is going to be the microsoft ecosystem from a lower base. has really been
all about the valuation of its stake in ali baba. if it can make the most of the assets it already has, this is one that i think could make further moves in 2014.2014. it is really why in the ecosystem space those are the two that i would look at. >> interesting. were you disappointed with what we heard from htc? it has been struggling for a while and it is increased, edition from chinese makers. >> personally i wasn't disappointed. the market was a little disappointed. the biggest problem when looking through the numbers is revenues were ok. pretty much it in line with what they guided for. they missed at the operating level. looking at what they can and can't control, my suspicion is at the moment what is happening is they have suffered more pressure on the gross margin which is why the operating income missed and i suspect that is because they have been cutting prices to try to hold onto market share. that for only so
long. at the end of the day, you have to get the margins up. losingaw the stock price some 50% over the last 12 months. we have seen so many high level of the partners. is there a chance to turn around the company at some point if you have the right people in charge? >> obviously, yes. the problem is that when i look at htc, it used to be brilliant. several years ago it was great at radio interface design. all of those things have now been commoditized. it is going to take a stroke of genius from someone inside htc to come up with an angle that will allow them to price at a premium to other android products. right now there is no sign of it. xiaomi.to me about i hope i am pronouncing it correctly. you spell it x-i-a-m-o. >> you're close.
>> this is a beijing-based company. it is taking the industry by storm. can it go beyond the borders? >> that is the million dollar question for all of us? ,f you look at huawei and zte both of them has struggled outside of their home markets. they have made some impact when they are able to sell operating devices and using the distribution channel. after that, they have struggled. is xiaomi any different, the amount of money that people are throwing into this thing in terms of financing for the next round would indicate, yes it is. frankly i haven't seen it yet. i would say, "on xiaomi. they have got good products -- open book on xiaomi. i have got good products. let's see if they can do anything with that brand. >> we have seen, they are pretty much design obsessed.
if they manage to sell abroad, will that change the way that you look at smartphones? >> not really. at the moment, looking at the xiaomi product it is just another android device. they are getting better hardware specifications and lower price which right now is what the chinese are quite good at. they are willing to take a very low margins in order to gain market share. xiaomi needs is exactly what htc needs in order to break in and become a brand and have a big success and become more of an ecosystem. i am sure they are planning on that. i bet they wouldn't be able to give you a coherent answer on how they plan to get there. >> interesting. thank you so much for that, richard windsor. coming up and about 15 minutes. i am joined by my coanchor, guy johnson. it is nice to be reunited. >> happy new year to you.
let's talk about what we have coming up. technology, we are going to continue to talk about that. a big week for tech. we have the samsung numbers out. today we are focusing on security. hans nichols is coming up to talk about securing angela merkel xfone. last year the story was are the -- all about edward snowden. hussein kanji is joining us to talk now about that. what else have we got? ryan chilcote is down at the london boat show. the weather at the moment, not very conducive to voting. that is what we are going to be talking about. eeker. talking to suns we are talking about the future for the yachting industry. it is going to be a nice morning for ryan chilcote down there. back to you. >> if only there was the son outside. -- sun outside.
i do so much. guy johnson with "the pulse" coming up. here are some companies on the move. "frozen" returns to the top spot in canada. the animated movie about two princesses is in its seventh weekend in theaters. "frozen" toppled the latest installment of "the hobbit congo which had held the lead for three weeks. lostbuse airlines cabin pressure as it was flying from london to singapore. the flight landed just after 1:00 a.m. local time. samsung is hoping to parlay its smartphone technology into automotive navigation. it is partnering with intel on open-source software that can run smart phones, tablets and car systems. the software has garnered interest from automakers
including toyota. edward snowden may have been bad for u.s.-german relations but his document has been good for some german businesses. hans nichols takes a look at two tech companies at a profit as they vie to produce the next merkel phone. >> before snowden's bombshells, two phones -- a modified blackberry and a samsung galaxy were competing for just one customer, the german government. angela merkel and the ministers who text her. about nsareports listening posts atop the u.s. twossy in berlin -- companies are experiencing a surge in private demand for what may be this year's status symbol, a secure smartphone. we have always been very keen on security. we think that what we are offering now as a service should be attractive to them.
a subsidiary of deutsche telekom, they write lines of code to virtualize the android operating system. the price, 1700 euros. calledypto card, the so- security anchor is inserted next to the semihard. on screen, you can toggle back and forth between the secure zone and the public one. it must be a secure compartment. , then you will see . it is a normal android. >> their competition, a modified blackberry. it is listed at 2000 euros. they offer discounts for bulk buyers. they claim their voice is more secure. isthe most important thing
that voice becomes important. -- there is value in your voice. they got the stamp of approval with the tender to sell some 10,000 devices. merkel has posed with the blackberry but it is a closely guarded secret which device will become the official chancellor phone. >> for more on the fight for merkel's mobile, let's bring in hans nichols in berlin. we need one of those. this is actually hotter stuff than the batmobile, the merkel phone. >> this is the issue. it only works if you call someone else that also has the merkel phone. this is one reason why those companies are competing for 10,000 contracts. spying,ll the nsa it wasn't clear that the german government would fill those orders. it looks like they will fill the orders and the top of that, they
want to expand. they want to expand to bankers. when you and i are there, we are going to ask everyone to questions -- one, did they fly commercial? two, do they have a secured phone? we are not going to talk to anyone that doesn't have the secured smartphone. >> you are talking to the only person in the newsroom that has a nokia dating from the early 2000's. i think it is vintage. what else? >> servers. servers are being relocated. a couple of companies are doing this. they are relocating to switzerland because they are jurisdictional he safe there. you see companies playing offense and that is the telecoms. then there are companies playing defense simply have to explain to their customers that there is no back door into their technology through the nsa. even just american components, over the weekend, a deal between
the united arab emirates and a french satellite company fell apart because some of the components -- this is a $920 million deal -- it fell apart. it may be over simply because some of the components were made in the states. this is a huge i.t. problem. >> hans, thank you so much. we will have to showcase the hans handset. you need to come up with something good to impress us. it is a deal. stay with "on the move." final thoughts are next. ♪
>> will come back to "on the move." i am francine lacqua here in london. this is the markets. it is a first full trading week of the year. for the moment, these stocks are pretty much -- they fluctuate quite a lot between 0.2% lower and 0.2% higher. we have had a report or are expecting a report that may show activity in britain and u.s. services expanding last month. he also had pmi figures. this is out of spain. slower --h was pretty stellar.
>> 9000 canceled flights and counting. the travel chaos continues as america gets hit by the coldest weather in 20 years. u.k. chancellor george osborne will set out his plan to slash spending. stocks at a five- month low. a weakening services sector points to slower growth in the world's second-largest economy. good morning, everybody. you are watching "the pulse." we are live from bloomberg europeea