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tv   The Pulse  Bloomberg  April 10, 2015 4:00am-6:01am EDT

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guy: premium products. samsung and apple launch high-end devices targeting the luxury market. deutsche is close to a $1.5 billion settlement on libor while hsbc must pay a $1 billion settlement over a french tax probe. greek deal insight. they will strike an agreement within the next two weeks. we will bring you our exclusive interview. good morning. welcome. you are watching "the pulse."
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i'm guy johnson. francine lacqua is on the other side of the pond. she will be back monday. two of the biggest names in tact going head-to-head today with the launches of new products. samsung debuts its galaxy s6 and s6 edge, both being launched in 20 countries including the u.s., u.k., and germany. meanwhile, preorders begin for the new apple watch. take a closer look at this new products. three new products, i guess. josh and helen smathers managing director. josh, let's start with you. you got your wrist on the new watch. premium product? josh: absolutely. apple is positioned the watch
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almost entirely as a piece of jewelry. what they want to talk about is materials, the process. this is about as premium as you get in electronics. guy: the whole process seems to be moving upscale. we are looking at a story that is increasingly driven at the high-end by lux products with nice material. the rest of the world is not going to be buying this. they are buying middle to low and android phones, which increasingly are a problem for samsung. >> that phone that you are holding it is basically a solution to a problem samsung has with apple. you could call it the iphone 6 for android users. it looks very similar, if you look at the edge you will see
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that this, the volume side,. the thinness of the phone also. what samsung has done has said looks were killing them. they've come out with a phone that ensures looks do not kill them. from here, they have to turn that phone into something they can sell to the mass markets. they have to take cost out of the equation. guy: the formfactor of this, josh, has not changed a great deal. you are tinkering. josh: we are in the valley. we had the peak, now we are in the valley, where everything is iteration. how do you challenge apple's marketplace? they went into the big phone marketplace where samsung was dominant and took it over. you have to rise to the occasion. the materials were lacking. guy: this is better?
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josh: in terms of quality and materials, absolutely. it is bringing it to the level of an iphone. its just tweaking slightly. guy: so i shouldn't be that excited? josh: if you are and android user and you want a high-quality phone with a great camera that is a great product. but for apple users, they've had this for almost a year now. pelham: the most recent survey showed that when the iphone 6 came out, 20% of people who bought it were android users. that's not a problem for samsung. in the u.s., u.k., and china, 40% of people who were thinking of buying and iphone 6 were android users. that is scary for samsung. guy: how permeable is the barrier? pelham: much more than you think. it works both ways. with netflix and spotify, all of
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these streaming services, the whole theory of iphone was around itunes. you were stuck. all your content was on apple. it is the same with google apps. all your content is on google. the more you've got these streaming services where a third party is getting everything for you, and those third parties are available on all systems then you no longer have this problem. you can use your netflix prescription on an iphone, on a windows phone,. guy: who does that permeability benefit? josh: on the permeability piece samsung stands to lose quite a bit. they could lose the market completely if they are not careful. you've got opponents like xiaomi and lg moving into the market.
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apple has become incredibly powerful. the fact that they've cleared that gap they are now in china in a big way, what you are looking at is this situation where samsung has to figure out what its hook is to keep what is not a loyal audience. the audience was only there for features size, availability. now you've got to figure out what is the play. guy: you described it as a piece of jewelry. is that because this hoax up to your phone? josh: it is an accessory. this doesn't exist on its own. you've got to have the phone. on that itunes lock-in, here's more lock-in from apple. icloud is a platform that scott some lock-in. the watch as related to the phone, if you want this, you've got to have the phone. that takes any galaxy phone out of the mix. guy: you could say they are lucky people that effectively
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you are limiting your target market. which way is it going to be? josh: i think apple has a great history of the lock-in working. i think that is the direction it is headed. they have to make you want to watch. guy: does it need a 3g chip, a 4g chip, can you make that work in a product like that? josh: i think fundamentally apple needs to answer the question, why do i need this on my wrist? with a phone, you know you are going to get a phone. this, many people don't wear watches now. first you have to say, you want to wear a watch. that is the jewelry part of it. then you've got to have the killer apps. right now, it is an extension of the phone, but that is not reason enough for a lot of buyers. pelham: probably 10 million units in the next 12 months
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which is in bad. better than the original iphone. josh: there are enough enthusiasts that will buy it sight unseen. they just want it. pelham: the really interesting question, it is not that good at identifying who you are. if they get a watch that identifies who you are, they are well on the way with security. guy: biometrics are really important. pelham: once this gets to the area of security, we get interest from enterprise. when the phone started, the company you work for bought it for you. suddenly, everybody wants to have their own phone. companies have a huge problem with cyber security. if somebody is logging in from a remote terminal they are not altogether sure it is one of their employees. what seemed to help them do that
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is if somebody is logging on and because of the connection with the watch, the iphone, and perhaps an app inside the central server at the company identifying who it is logging on, they will be able to limit security. that would be a huge win. guy: biometrics looks like it is going to be really interesting. josh: i think the body tracking features are kind of secondary in terms of what you may use those four. i think at that point, security is an increasing issue for everybody. how you protect your identity your credit cards. there could potentially be a use here where this becomes so personal. guy: personal is really frightening. josh: when it is on apple servers. guy: we are giving these guys an awful lot of data. companies like google have built their businesses on us being willing to give them our data.
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are we going to increasingly be willing to give them our data? josh: we don't have a choice right now. everything moves into the digital realm. our entire lives are going to be there. who do we trust with the data? who can really prove to us that they can protect it? i think apple is in one of the better positions. they have been -- they do not have many large security breaches. they are extremely focused on privacy and security. that has been from day one. they are better positioned than many. guy: that feels like a very different device than this. this goes in my pocket, that goes on my wrist. josh: it is reading your heartbeat, tracking where you are going. guy: is apple better positioned?
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is google better positioned? these companies have been harvesting everything that we give them and they are incredibly strong positioned as a result of that. pelham: i think we could have multiple winners. the obvious groups to start with are those that are strong in software. samsung is actually quite good at software. what they are not good at is original software, coming up with left field ideas to put into hardware. that is where apple and google have this huge head start. all the stuff we're talking about is stuff that has been through apple's had orders in the last five years. they've got something better. probably the same with google. samsung, they always seem to be a few years behind when it comes to the original idea. take samsung pay. how long have we had it for apple? that, i think, is the issue.
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why do we always think, start with apple google, because they seem to be one step ahead throughout the software chain. guy: we will leave it there. thanks for your time. just topolsky, pelham smithers. that brings us to our twitter question. are you going to order an apple watch? let us know. let us know what you think of it. are you going to look at it? let us know. join the conversation. what else is on our radar? deutsche bank is close to resolving a probe by u.s. and u.k. authorities into interest rate medical nation and is expected to pay penalties more than $1.5 billion. germany's biggest bank will probably finalize a settlement this month with its u.k. subsidiary. deutsche bank is expected to plead guilty.
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hsbc has been ordered to pay a $1.1 billion they'll charge after being charged with tax evasion at its private bank. hsbc said it was informed of an investigation regarding its private bank in 2006-2007. it said the decision is without legal basis, and the bail is unwarranted. u.s. president barack obama and cuban president castro are in panama today for a summit of the americas where they could meet for the first time since they announced plans of restoring diplomatic relations. it will be the first time cuba takes part in a summit of the americas. coming up, a deal insight. greece's finance minister tells bloomberg he wants an agreement in two weeks. ♪
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guy: welcome back. you are watching "the pulse." deutsche bank is close to a $1.5 billion deal settling investigations into libor manipulation. according to people familiar with the matter, the possible
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deal with the include -- deal will include u.s. and u.k. authorities. hans nichols has the story from berlin. hans: $1.5 billion would be north of one point -- ubs, they were right at $1.5 billion. that was the high water mark up to that point. rabbo bank paid $1.1 billion. it gets a little confusing translating from euros. barclays came in at $451 million. lloyds bank paid $383 million. this would be the biggest settlement. it would also include potentially a guilty plea for their u.k. subsidiary. barclays never actually pled guilty. they were one of the first banks in. deutsche bank has already settled a yen and euro libor probe with european authorities. that came in at 725 million
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euros. what analysts are saying is that this is good news. it removes the uncertainty. one of them said, the psychological effect is that the uncertainty is gone. for deutsche bank libor is one of the last big legal disputes. it includes two countries and the new york state department of financial services. the cftc velasquez shop and the cfa in the u.k. you have multiple regulators coming together here. deutsche bank set aside 3.6 billion euros last year for legal provisions. over the last three years, 7.1 billion euros have been spent by deutsche bank on litigation costs. we are getting a sense of how big this probe is going to be. now, when will it be finalized? it looks like this month. guy: how far through this
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process on libor are we? hans: looks like we are almost getting there. seems like we are close to the end on libor. when you say close to the end on all litigation, no. for deutsche bank, there is still a question of foreign currency manipulation. remember the part of the deal that was announced last year. deutsche bank wasn't part of that. it was a 4.3 billion euro settlement last year. deutsche bank, they say they are in the clear on the currency side. however, we still have iran potential violations with iran. you remember what bnp paribas paid. that was 9 billion euros. in the past, deutsche bank say they are provisioning. they say they think they are through. will there be much more, and how much more, and once all these probes over are they finally
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clear and free? guy: hans nichols, thank you very much indeed. we need to talk about hsbc in a little more detail. let me run you through what has happened. the bank must pay just over $1 billion after being charged in a criminal probe of tax evasion. hsbc has responded. the bank says it will appeal and the decision is without legal basis. we are going to take a break. after that as the u.k. election draws near, we will explain the system and why the most important thing is location, location location. "on the move -- ♪
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guy: welcome back. let's talk about the u.k. general elections. actually, it is more like 650 local elections. it is because of the voting system. while the setup is fine for big
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parties, the smaller parties are the ones that suffer. rob explains why using a set of projections from the beginning of the campaign and some legos. >> it is a matter of winning the most seats. that means getting your votes in the right place. the system actually helps the bigger parties. labor is 33% of the vote, translated to about 42% of the seats in parliament. same thing happens to the conservatives. for liberal democrats, they are 8% of the vote, 4% of the seats. ukip, that is 4% of the vote, 1% of the seats. for the greens, 5% of the vote is likely to turn into just a single seat. but it doesn't have to be like that. the scottish national party they are about 4% of the vote. they are forecast to win as much
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as 7% of the seats in parliament. this is why the small parties in britain support electoral reform. guy: more about this later on our politics program. we will bring you our latest polling. we will find out a little bit later on. in the meantime, let me show you what is happening with the british pound. you are beginning to sense a bit of nervousness. the data today, obviously something to pay attention to. nevertheless, getting a sense, this feeling beginning to emerge that people are starting to pay attention to the risks that could be posed in the postelection period. we have all kinds of issues to deal with. minority government, unstable coalitions, all of that. stocks a little more positive. we are up by 0.4% on the euro stoxx 600. we are moving into record territory in terms of the
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european equity space. you are seeing that reflected in the flipside on the bond market. the french five-year the market really fascinating at the moment. increasingly, the curve continuing to flatten. more and more of these bonds being pulled into negative territory. what have we got coming up, we are talking greece. the greek finance minister tells bloomberg he wants an agreement in the next two weeks. he wants money for his economy otherwise problems are going to start. our twitter question of the day, about what is happening with the watch launch today. apple watch, as useless as a remote control for your posterior?
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plenty of tweets coming through. continue to bring them in. "the pulse." ♪
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guy: welcome back. you are watching "the pulse are co-i'm guy johnson. let's talk about what is happening with the u.k. data. 0.1%. we were looking for 0.3%. the pound is trading at session lows. saw a dip around half an hour ago, and we continue that move to the south side.
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we are now trading on the cable rate of 1.4672. we are down another three cents. more softness coming through on the back of the ip data. looks like it is a little on the soft side. let me bring you some of the other news you need to be aware of. samsung is debuting two new galaxy smartphones today. the company has said that demand for the galaxy s6 average, which features a screen stretching down both sides, will probably slightly exceed demand. analysts say shipments could reach 55 million this year. meanwhile, apple is taking preorders for the apple watch today. the smart watch will also arrive in apple stores for previewing. the watch is apple's first new gadget since the ipad debuted five years ago. it is also the first to launch under its ceo, tim cook.
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hong kong's de facto central bank -- [indiscernible] the hang seng benchmark hit a seven-year high on thursday. the greek government has secured an increase in emergency funding from the ecb. the news comes as the finance minister told bloomberg he is confident that a deal will be done this month. for more, let's bring in our reporters. we are joined by manus cranny who spoke to verify his, and in brussels, our bureau chief jone ss haden. manus: i think the finance minister made a real split decision moment. i'm doing well with these negotiations however, when
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questioned about dispensing with deficits, he's going to get a good result. this is the finance minister. let's take a listen. >> [indiscernible] if we have a bump in tourism, which i trust we will as long as this produces a good outcome and we have stabilization of the economy and the creation of -- [indiscernible] regarding the debt situation, i think it is essential that we
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look our creditors in the eye especially citizens of countries who have lent to the greek state , and say to them that we want to maximize the value that you get back from us. the way to do this is to have incentive compatibility. if we have parts of the debt swapped with gdp bonds, it is clear that the more we grow, the more our creditors get back. we don't want to elongate security. that is not something we are seeking. it is not our preferred solution. we want to pay as much as quickly back, but if our repayments are linked to our nominal gdp growth this is what we're asking for. to have smart swaps of debt with instruments that lock in this
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kind of incentive compatibility so that we -- [indiscernible] our fellow citizens will know that their countries -- [indiscernible] manus: there's the point. the finance minister is trying to say, no haircut. you get more money back. [indiscernible] there's big payments due next week. turner i caught up with him. he said there's no way. not just greece, but the whole eurozone can suffer under the debt load. when i said, are you ready for the political backlash, he said we wouldn't be fit to the purpose if we are not prepared
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to stabilize greece. we are prepared to take also the compromises but we are not prepared to be compromised. he hung around with me for eight minutes, more than other people. guy: no comment. thank you very much indeed. jones, in a world of deadlines for greece, what is the next one? jones: right now, there is a big meeting next week. the eurogroup deputies are gathering in brussels. they are looking for details of greece's plan. greece is talking about what it is going to do in the future. the eurogroup is focusing on its current bailout program. in order for greece to get the next tranche of its bailout money, it needs to flesh out the plan that its already submitted. the eurogroup send it back to athens and said, we need more details.
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we need to know more about what you are going to do in the labor markets, the pension system, and other things. we will be looking at that to see if greece is going to come up with the details the eurozone needs. manus: i think that is part of the reason why varoufakis had breakfast with gurria. we are obsessed about the numbers, the 1.5%, the 895 billion euros, the oecd are there to support the greeks, to affect good governance, good tax collection. the oecd will, working with greece, give them credibility that the creditors crave so much. this is a game of trust as much as numbers. excuse the pun on game theory. guy: jones, so the greeks are looking for credibility. they think they are going to get some kind of deal. what are you hearing in
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brussels? what are you hearing from berlin about whether enough boxes are being tickleded to make this viable? where are we in terms of the gap that has previously existed both personal and economic? jones: i think we are still a little ways away. they were hoping to have something's own up already. greece has been promising since february, almost since january, to come up with this program this plan that their creditors need in order to come up with the extra money, the next tranche of money. we are still a ways away. what we are looking for here what the creditors are looking for, is to have the details of the program how greece is going to reform its system in order to meet the demands of the bailout program that they already have. they are hoping to get that by the middle of next week. and then, to have a deal, to get
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a deal on april 24, when the eurogroup finance ministers meet in reno. guy: we will leave it there. thank you very much indeed. manus cranny, jones hayden thank you. coming up, we continue the conversation surrounding greece. italy's finance minister says talks rule out an exit. we will hear from him exclusively. we have that later on. we will take a break. see you in a moment. ♪
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guy: >> what i'm hearing from my european colleagues is that there is a common interest in finding a solution which excludes grexit. >> that was the italian finance minister speaking to bloomberg. let's get more on the greek story. let's begin with marcel. he joins us now from berlin. thank you very much indeed for taking the time. what is your sense of where we are with greece? we've had a whole series of deadlines. we are probably going to have more deadlines. the greek finance minister telling us he thinks a deal will get done on the 24th. how confident have you been? >> i wouldn't take the deadline
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so seriously. they always have been broken in the past. generally, we are on a good path to see an agreement between the greek government and the eurogroup finance ministers. i think there is a clear commitment from all sides, including berlin. we want to help greece. we want to make sure greece has a chance to implement reforms and get access to additional funding. basically, there is a very clear message from berlin. we want to get a deal done. all the greek government has to do is send the right signals. guy: do you think that is actually going to happen? we've kind of been here before. suddenly, the reform program suggested by athens isn't sufficient. do you think we could end up there again? marcel: i think we've seen this
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for the last five years, that the europeans or the troika have said, you have to do more. i don't think there will be any difference this time around. the greek government will try to do as little as possible in order to meet domestic political requirements. the europeans will say, you have to do a lot more. that is a perfectly natural outcome in the negotiation process. eyes feel -- i feel that there is a compromise. the true positions are much closer now. i think it is just a matter of time. at the same time, we should be aware that having additional payment going through the greek government now will not solve the problem of the greek government. we now need to think about the third problem. it is clear, the greek
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government will need additional funding from its creditors over the next three years. probably around 30 billion or 40 billion euros. guy: you've taken me in the direction i've hoped you would go in. let's talk about that bailout program in more detail. is the set of reforms that greece may or may not agree to going to be the blueprint for the third bailout program or will more be required? marcel: clearly, a third program would require more. a lot of reforms that the greek government is committing to now had already been part of the second program. there is little new here. it is just an adjustment. it is clear, the greek government needs more time to implement those reforms. if you take the stuff about tax collection, fighting corruption, there's nothing you will do in
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any government within three months. you need several years. what we are discussing now in europe should be the blueprint for the third program. the question is, how will the control mechanisms work? the europeans will insist on making sure you continue on the reform path. the greek government doesn't like the troika, but there needs to be control mechanisms. that will be the detail that will be crucial. how can we ensure that the reform process continues and they see return of economic growth in greece? guy: is their political appetite amongst parliamentarians to allow a third program to go through? they were promised there wouldn't be a third program. marcel: there have been many promises in the past. if you look at the extension of the second program, there was an overwhelming majority in favor. more than 500 parliamentarians
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voting in favor. only 32-33 against. there is a clear political intonation by the government, we want to continue helping greece. i have little doubt, if the program is right, if there is a compromise, the german parliament will approve it. guy: marcel, i'm hearing a lot of people talk about the fact that the eurozone recovery is beginning to gather momentum. what is your sense of how strong this moment am is? marcel: we have a very uneven momentum in the euro area. the german economy is booming. we are expecting more than 2% growth this year. wages are improving. southern europe, not just greece, but italy, is a big concern. we see a very strong momentum but the risks surrounding the baseline scenario of about 1%
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growth this uncertainty is enormously high. we have the risk of a political crisis in greece. i wouldn't rule out a political crisis in spain. or problems in italy. we still have a lot of banks that have difficulty, too little equity capital. a banking crisis cannot be ruled out. you have a multitude of possible risks that are mostly to the downside. guy: so is qe benefiting the countries region, that doesn't really need it? we've got qe, and low oil prices. that is maybe not having the effect elsewhere in the region. marcel: we see that the qe program has had a positive
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impact everywhere. if you look at long-term government yields they have been falling in most euro area countries, and more in southern europe. spain and italy have seen, since the announcement last summer, 10-year yields coming down. in germany, they have declined by 80 basis points. what is true is that the euro depreciation actually increases imbalances within the euro area. the weak euro benefits germany. germany had a current-account surplus last year. i expected to rise to close to 9% this year possibly close to 10% in the next few years. the weak euro actually helps increase the imbalances in the euro area. guy: always a pleasure to speak with you. thank you for your time, marcel fracture. let me bring you some of the other headlines we need to pay
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attention to. iran's supreme leader is putting a roadblock in the nuclear negotiations. he says economic sanctions on his country must be lifted as soon as an accord is signed. and iran's military facilities will remain off-limits. those assertions contradict western descriptions of the framework announced last week in switzerland. one of europe's biggest private equity firms is said to be preparing an ipo. an ipo would give it access to permanent capital. the legendary australian cricket captain and commentator has died. he passed away peacefully in his sleep. australian minister tony abbott told reporters the nation had lost an icon. benaud's family has been offered a state funeral.
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coming up, he's being called -- [indiscernible] our behind the scenes look at his shoes after the break. ♪
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guy: welcome back. giuseppe is a shoe designer for superstars.
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he's worked with kanye west lady gaga, and beyonce. but how do these dream collaborations, about? bloomberg news went to meet him and find out. >> giuseppe makes heels for killer prices. a shoemaker for and now with superstars he is joining forces with beyonce, following in the footsteps of his collaborations with kanye west. how do you team up with a megastar? >> there are two ways. the traditional one, through secretaries, pr, agents, it can take 12 years and costs you i don't know how many billions and nothing happens. the other one is that you meet them by chance at a charity night like with kanye west or like a fashion event with beyonce. all things that happened by chance are the nicest. you exchange phone numbers and,
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overnight, you get an e-mail from los angeles. >> it is a fitting combination. his first love was music. he started out as a dj in the early 1980's before taking up design. after a stint working freelance, he was able to buy a shoe factory in the 1990's. from there, the business group. today, he has 92 stores around the world, and aggressive plans for growth. >> in 18 months, we will have 30 more, for a total of 120 shops. having shops means having a stronghold and being able to show your collection. >> with annual sales of 156 million euros, zanoti recently sold 30% of his business to l
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capital. now, he's looking east. >> we are investing in repurchasing ventures we've had in the middle east and asia. we are also investing in strafing our production outlet. >> but what about the competition? with some of his shoes costing more than $2000, there are those inevitable comparisons with a certain red's old rival. >> louis vuitton is a -- louboutin is a great shoemaker just like me, and we are enemies. the truth is, it is an incredible brand. guy: for those listening on bloomberg radio, "the first word" is next. for "the pulse our viewers, it is a second hour of "the pulse "the pulse."
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we will carry on the conversation about samsung and apple. we will talk about that when we come back. that brings us to our twitter question. ♪
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guy: premium products, both samsung and apple launch high-end devices targeting the luxury market. banking fines, deutsche is close to a $1.5 billion settlement on libel, while hsbc must pay $1 billion over a french tax probe. and is a greek deal in sight? the country's finance minister says he'll strike an agreement within the next two weeks. we're going to bring you our exclusive interview. guy: a very warm welcome to
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those just waking up in the united states. i'm guy johnson. this is "the pulse." we're live from bloomberg's european headquarters right here in london. so two of the biggest names in tech going head to head today with the launch of new products. samsung debuting its galaxy s6 and the edge smartphones. 20 countries, including the u.s., u.k. and germany. meanwhile, preorders begin for the new apple watch. joining us now to take a closer look at these two products our team with technology. let's start with you. you went out to a couple of stores this morning. traditionally these kind of launches generate huge queues. nobody in sight this morning. >> yeah, in september, when we did the iphone6 story, there were over 1,000 people there, and it was down the park, filling blocks and things. today it was just me and security yeah. guy: that's deliberate, though, isn't it?
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amy: yeah, there was a memo that went around recent that will said they want to kill off the line, it's a frustrating experience. there's stories about people being paid to be in line people using the lines as a way to smuggle devices across borders, that sort of thing. it's not in anybody's interest. guy: your tweets from this morning, the pictures you took, not a line in sight, but there are a few security gates on the right-hand side, so maybe there was something going on. amy: yeah precautionary maybe. guy: ok. ronan, the samsung and apple products both really high end, with punchy price tags. is this the strategy that these two companies are going to increasingly use as competition heats up? ronan: yeah it's very important for these companies to put them out there sort of those -- guy: do you think we're going see more of that particularly from samsung? samsung really faces a battle. we've got all kinds of competitors coming in to the android space. the price is -- the price
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points are quite low. how do you combat that? ronan: samsung is trying to combat, so you can see the edge and it's definitely a product. and then the lower end, they did have to make some effort to compete better with sony and some of the chinese manufacturers. so they're being attacked on both fronts, but where they need to respond at the low end now. guy: amy, just talk about the watch a little bit. everybody is getting very excited about this, but it's still basically -- you described it earlier on as being a piece of jewelry. the reason is maybe i've still got to have my phone. this is just a full horn. amy: it's never going to replace your phone but it opens up this sort of new way of interacting with the internet. it makes it very seamless. you don't have to, you know, have any delay between the time when you get a message or email
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and when you know it because it taps you on the wrist. it's going to open up new uses for the internet of things, like i can use apple pay with my wristwatch sirgese just tapping to pay and tapping to open my hotel room door and tapping to access my ticket for the train or plane. guy: a lot of opportunities, maybe some problems as well with some of that stuff. presumably, the more this stuff gets integrated into our daily lives, particularly in a biomet rick way, ronan, the more risks there are for consumers. security is going to become a bigger and bigger part of this story, isn't it? ronan: yes, definitely. i think you can see apple and google trying a lot of beta on their customers especially metrics. that would be very useful for consumers, but it's very important to protect its data otherwise they would lose all trust. guy: yeah, it's going to be a battle, maybe less for apple, some would say, but certainly more for good and he will for samsung.
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how big do you think the potential market is for the watch? you've got to have a phone. this is the bit i don't get still. ronan: yes for example, the apple watch we think will sell around 10 million units by the end of 2015, and that would be holding about 2/3 of the market. guy: does it get independent of my phone? is that the ultimatitier ration of this? ronan: some devices are independent from the phones, and many of those are high-end sports watches you know, where you can run around. guy: the price point is pretty aggressive for something that effectively i've still got to buy a phone for. i've got to buy an expensive phone and i've got to buy, in certain cases, a pretty expensive watch to go with it, and these things don't have the greatest shelf life either. amy: they're pretty comparably priced at the low end to other smart watches, but once you get
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into the $17,000 end, it remuneds me a little bit -- do you remember the phone? it's starting to sound a little bit like that, but there is a market for that sort of thing. guy: but back to the issue of longevity, when do we think the next one is going to be out? they're going put this thing out, tweak it around see how people work with it, and then they're going to produce another one. i think i'm cool with my very expensive watch on my wrist, but in a year's time, will it look for others? amy: they tend to updates things every year, yeah. guy: is that a problem? once you get into wearables -- you put something in your pocket, it doesn't come out quite as often, but if you've got it on your wrist it's a much more obvious personal choice. ronan: the watch market is very different from the phone and tablet market, for example. with a watch you can change the watch face every day, so you can have a different mickey mouse face, a different one every day, and people will love
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that. it means you don't have to buy like 10 different watches. you know, you just buy one and change it. that's the low and middle market. the very high-end one, you above $10,000, then you up wouldn't want to change that every year or two years. guy: how do you deal with that? you're trying persuade people to buy this phone. will people go back and keep spending money? evidence suggests the answer is yes, because they're prepared to upgrade their phone. but if the universe is getting -- if you've got -- in two years' time, if i've got my phone and watch, which one am i going to do? am i going to upgrade both of them? does the product cycle have increasing resistance built into it the more products we have a satellite around our phone? ronan: yes, i think that makes sense actual natural way. but again, from the low and
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middle market, you see what samsung has done for example. they bundle their products with smartphones and tablets. but we have to see where the smart watch market is going to go. where is the money going to go? because if it's in the high end, then the product cycle is going to be completely different. i think different than the low end. it's quite complicated. we have to see. guy: no, i have a sense we're getting into a whole new sort of -- whole new cycle. guys, thank you very much indeed. ronan and amy, thank you. right, let's look at what else is on our radar this friday morning. deutsche bank is close to resolving a probe by u.s. and u.k. authorities into interest rate manipulation and is expected to pay penalties of more than $1.5 billion, according to people familiar with the matter. they will probably finalize the settlement this month with its u.k. subsidiary.
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staying in the banking sector hsbc has been ordered to pay a $1.1 billion bail after being charged in a french criminal probe appear its private bank. hsbc said it was informed and has been placed under criminal investigation regarding its private bank's conduct between 2006 and 2007. the bank said it will appeal, said the decision is "without legal basis" it is unwarrant and had excessive. the u.s. president barack obama, and the cuban president, raul castro rrks in panama today for the siment of the americas, where they could meet for the first time since they announced plans in december to work towards restoring diplomatic relations. both will be present at an arrival ceremony the head of a formal dinner. it will be the first time cuba takes part in this summit of the americas. coming up -- a deal is in sight. greek's finance minister tells bloomberg he wants an agreement in two weeks. we'll have the exclusive interview coming up. ly and super yacht showcase. we'll be joined by the c.e.o.
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of the british marine federation ahead of a big u.k. gathering of the luxury yacht industry. back to the subject we've been talking about, are you going to order an apple watch today? let us know what you think of the product. let us know whether you're going to buy one, #thepulse. ♪
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guy: welcome back. you're watching "the pulse" in london f. you're sitting in europe, you're wondering what the european markets are doing, broadly a little bit higher on the equity front. pricing in some of what we saw yesterday on the back end of the session, and as you can see, the stoxx 600 up by around .4%. healthcare, tech, and human services some of the main areas that are rallying. the dax in particular up quite strongly this morning, up by .9%. let's stay in germany. deutsche bank close to a more than $1.5 billion deal to settle investigating into its libel manipulation behavior. this is according to two people familiar with the matter. the possible deal would include both the u.s. and u.k. regulators. our international correspondent, hans nichols, has the story from berlin. $1.5 billion, put that in context. hans: well that's the ceiling, not the floor. this could go higher. right now the current record for the scandal -- we should separate libor fixing, currency
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fixing, and whatever may have been done in cuba. it leads with libor. right now it's $1.5 billion. that has been the record. that was paid by u.b.s. then we had a $1.1 billion fine. that was paid by rabobank. you remember barclays, they were one of the first, and they cooperated, and they didn't end up pleading guilty. lloyds settled for $383 million. deutsche bank has already settled a different libor probe for 725 million euros. what we have here is at least some potential certainty on the libor side of things. last i checked, it was up around 1%. one analyst said the psychological effect is that the uncertainty is gone for deutsche bank. libor is one of the last big deals. crucially, guy, this includes the department of financial
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services. that's in the state of new york. because deutsche bank has a new york state charter that she means new york regulators get involved u.k. regulators involved, u.s. department of justice, everyone is involved. the expectation is that this deal will be done by the end of this month. that's the end of april. that's according to one of the people familiar with the matter. and guy, to put it in context, they've provisioned that the end of 2014 they have provisioned 3.6 billion euros, deutsche bank has. in total, over the last three years, they have spent 7.1 billion euros on litigation and legal costs. now we might add $1.5 billion to that, and then we'll see about some other probes as well. guy? guy: put it in context. there's pretty big numbers there. i talked about the context in terms of other settlements, but in terms of where we are through the process, where are we? hans: so deutsche bank, we still don't have a number on any sort of alleged currency manipulation, and last year
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when we had that big multibank group, deutsche bank was included, and that was a $4.3 billion, i think it was dollars, a fine spread out among several banks. you also want to look at b.n.p. paribas did. what they paid in terms of their cuban violations that was $9 billion. so remarkable sums and in that context, $1.5 billion doesn't look like that much, but still, deutsche bank has to settle if they are caught up in the currency investigation, and it looks like they are. one point on that though, it doesn't look like they'll be dealing with benjamin's shop in new york on occurrence sifment that's been indicated they're not necessarily going to be on the hook there. and we don't know how involved deutsche bank was in potentially violating a wrong sanction. the numbers that have come out of those fields are pretty eye popping, and now we at least have some certainty, and hopefully for deutsche bank and its investors, some finality on
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the libor probe. guy? guy: hans, thank you very much indeed, our international correspondent, hans nichols, sitting in front of what looks like a very sunny day there in berlin. now, coming up, a deal in sight. greek's finance minister tells bloomberg he wants an agreement in two weeks. our exclusive interview with this man, yannis stournaras, coming up very shortly. and what we want to know today, are you going to buy an apple watch today? let us know. ♪
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>> the signs are that in spite of the initial authorities of the greek government talks continue. progress is being made. and i am confident that after this short-term arrangement expires, there will be very serious discussion about a medium term arrangement that will tackle the deep roots of the weak economy. guy: that was the italian finance minister speaking to bloomberg in an exclusive interview. let me bring you another one now. my colleague manus cranny, spoke to the greek finance minister, who says he's confident we'll get a deal done at least in the short term in the next two weeks.
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yannis: first, already our tax it take in march quite surprisingly has overshot the budget projection by 18% 19%. if we have a bumper rear in tourism, which i trust we will, i think that as long as this negotiation produces a good outcome very soon. and we have stabilization of the economy. then yes of course it is highly reachable. it was something i was opposed to, but quept to maximize the value that we get back from us. but the only way of doing this is if we have an incentive
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capability. in other words. if we have parts of the debt swapped with g.d.p. index bonds so that it is clear the more we grow, the more money our creditors get back. we don't want to elonggait securities, because that would mean a real haircut for our creditors. it's something we're seeking. it is something we hear being suggested as a solution. it is not our preferred solution. we want to repay as much as quickly back, but oak do this if our repayment is linked to our nominal g.d.p. growth. this is what we want for, to have smart swaps of increasing debts with instruments that lock in this kind of incentive compactibility, and so that when we suggest, for instance, an investment package from the greek private sector, our fellow european citizens will know that their countries have lent to the state and realize that this is in their interest that this is when it takes
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place so that greece grows so they get their money back. guy: that was the greek finance minister speaking to my colleague, manus cranny. let's bring in james for story. there's a number of things that came out of that clip. first up, let's talk about whether or not we think we're going to get a deal by the 24th, we're going to get a deal at least in the short term, the back end of a second program done in the next couple of weeks. james, you know, the signs have been -- the noises have been positive, the noises that we've heard from people like the italian finance minister and the european spokeswoman says there's progress, but we'll have to see. the voices you really have to hear, namely out of berlin, we vanity heard a word. so we'll see. over the course of the next four to eight weeks, greece will probably be able to struggle along find euros here and there as they need it.
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really, the main deadline here is in may, sometime in may because they need to get program money to make their debt payments in july. those are massive, almost seven billion euros of payments in july, so really may is what you really need to be looking for. guy: yanis varoufakis is talking about, once again, about nominal g.d.p. bonds. james: yeah. guy: this is meant with not exactly the greatest response thus far. james: well, it's a mix direction play. from the beginning he has said , you know before he was in government, that greece's sprob one of solvency, not liquidity, there's too much debt, they need to get the debt down. there's something to be said about that. however, it's misdirection now, because the burden the fiscal burden from debt repayment social security virtually nil. so you know, the more he talks about that, the less he talks about what people in berlin and
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frankfurt and brussels want to hear. zpwoip they want to hear about reforms, and they want to -- we need to get a meeting of minds on what is possible and what is not possible in terms of the kind of accountability versus the greek parliament, and there needs to be some kind of meeting of the diagram here. james: yes, he's not made himself extremely popular with his counterparts. you know, they speak privately about his showmanship, let's say, and less -- with less respect about what the new greek government is bringing to the table about making the points they need to make proving their case. the team brussels both on and off the record have questioned the technical competence of behind their proposals. guy: what happens now? we've got, a the back end of the second program, and at some point we're going to talk about
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a third program. the third program is going to come with even more onerous requirement requirements. how practical is it that we think we're going to get anywhere over the next six months that actually takes us someplace sustainable? james: well things move very slowly and incrementally. angela merkel wants very much to keep the eurozone together, to keep the european union together, and that political pressure, that political overhang will ultimately take care of a lot of the technical and specific program and financial details, the political imperative ultimately as it has will outweigh the fiscal and financial imperative and unless the greek government wears out its welcome and wears down patience, because she really does not want to be the chancellor who oversaw the
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dilution of the euro. guy: thanks very much. we're going to take a break, back in a couple of minutes and talk about leg sandow british politics. ♪
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guy: welcome back. you're watching "the pulse" 678 we're live from bloomberg's european headquarters in london. these are the top headlines -- samsung debuting two new smartphones today. the south korean company has said demand for the galaxy s6 edge which features a screen that wraps around the side of the phone, will probably exceed supply. analysts are predicting shipments could reach 55 million this year and help the company overcome a recent surge by apple. meanwhile, apple begins taking preorders today for its apple watch.
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the smart watches will also arrive in apple stores for previewing. the watch is apple's first new gadget since the ipad's debut five years ago. it's also the first to be launched under the c.e.o. tim cook. and iran's supreme leader is putting a road block into the nuclear negotiations. ayatollah says economic sanctions on his country must be lifted and iran's military facilities will remain off limits to international inspectors. this contradict western descriptions of the framework announced last week in switzerland. right, interesting morning for the pound, interesting morning for equities reasonably interesting morning, i would say, for fixed income. >> it takes so much to excite you, i do my best to do just that. markets pushing to a new all-time high. the dax up by 1%. gains on the periphery, sandain italy, the ftse 100 not missing out on the rally either, up by
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a quarter of 1%. it is groundhog day for european markets. you will hear me say this a lot. a rally in the bond market once again. i'm going get to that eurozone bond market. guy is desensitized by the headlines, because we've seen it come across the bloomberg terminal, record low yields, record low auction, more record low deals. the french five-year, the note, the yield drops below zero this morning, quite remarkable. italy auctioning one-year debt at a record low at least you'll get some positive yield on that one-year note from italy. but i'm looking at the bonds in germany. a five-year yield in germany is just .13%. the four-year, very close to negative .2%. why does that matter? that is the threshold for the e.c.b. anything below that, the e.c.b. will not buy it. anything below minus .2%, why does that matter? great story today, 20% of eligible german securities trading below that threshold. that means scarcity in the bond
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market. you have scarcity in the bond market, what does it mean? did you further along the curve and squeezing those yields lower, lower lower. so groundhog day, bond yields lower, guess what else is lower. euro dollar goes through 106 very briefly, down by a half of 1% this morning. i call it groundhog day. maybe that's why guy thought of this, but these headlines matter. guy: they do. you got to look at the bigger picture, what you say about the flattening curve, absolutely right. the german curve keeps on flattening and flatening. makes you wonder where this is going to end and whether or not it's actually having that big an impact on the european economy. >> i'm more excited about the smartphone. guy: it's been a long week. thank you very much indeed. right, let's get on to what's happening in the u.k. the general election, we think about it as a general election. we think about it as a single entity, but in reality, what's happening in the u.k. is more like 650 local elections.
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why is that? it's because it's the first part of the voting system. while the setup has in the past been fine for big parties, smaller parties certainly suffer for it. they explain why using this celebration dates back to the beginning of the campaign and a little bit of lego. >> it's not a matter of winning the most votes it's a matter of winning the most seats, and that means getting your vote in the right place. this helps the bigger parties. labour is 33% of the vote. that translates to about 42% of the seats in parliament and the same thing happens to the conservatives. for the liberal democrats, that 8% of the vote turns into about 4% of the seats. that 14% of the vote is likely to turn into just 1% of the seats. and for the greens 5% of the vote is likely to turn into just a single seat, but it doesn't have to be like that. the scottish national party
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they're about 4% of the vote, forecast to win them as much as 7% of the seats in parliament. and this is why smaller parties in britain support the electoral reform. guy: here's a bit of something i didn't know before. my producer, who is an american, tells me that on the other side of the pond they call it legos. with an s on the end. that doesn't seem to be there. anyway, just throw that in there for interest's sakes. the politics show is coming up very shortly and that means that andrew and myself are going to be together. what are we going to be talking about? >> she has no right to reply. she's just a voice in your ear. lego, legos, lego, we take off all sorts. let's talk about the polls, shall we? the numbers, have they been moving? the forwardian has this big -- the day the polls turned reading of what's going on in the polls right now. that's of course, a newspaper
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with a less leaning stance. but let's look at what they're talking about. floor three polls out in the last 24 hours that too seem to suggest something of a labor our lead in the poll. panel base gives them a 6% lead. t.n.s. gives them a three-point lead. crucially, some of these polls were taken very, very recently after we saw the announcement of the nondoms policy by labour and some of the analysts are pointeding to that as something that might have moved things around. one poll puts the personal approval rating of ed miliband ahead of the prime minister, and that is the first time that's happened. and that matters, because the conservative party part of their campaign is pitting ed against david and comparing the two, and trying to push the comparison. if they're not winning on that, that's going to be something that's going to raise questions.
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arn a: in particular, concerning u.k. so we think the first time in a ball this is the daily mail poll the first time in 18 months thief not beaten the lib dems. that's quite significant. where is that u.k. vote going though? often it's going back to the major parties, back to conservatives, going back to labour. that's been a feature of the polling we've seen more broadly across this week. also interesting to keep an eye on what's happening to the s.n.p. poll. a new poll suggests they have seen a 3% gain since the last poll there. that takes them up to 49% in scotland, and labour losing some of their percentage points. they're down at 25%, just underlining the challenge in scotland and the really strong performance of the s.n.p., looks as if they will secure it during this election. guy: so it looks as if the nondom thing has certainly provided a watershed moment maybe looking fairly
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interesting, the description by the conservatives to kind of push this one as hard as they have, and also quite personal attacks being made on the labour party leadership as well. anna: exactly. lots to talk to tim collins about. he's an ex-conservative m.p., and he works in politics, and he was one of the speech writers for margaret thatcher, other conservative party leaders, and so we thought we'd ask him about what he thinks of michael fallon's decision to talk about ed miliband and his personality and this allegation that he stabbed his brother in the back to take the labor our party leadership and would he stab the country in the back by limiting the defenses. this has proved itself contentious. ed miliband has spoken out against michael fallon for taking this stance, but interesting to get that conservative party speech writer's perspective. a long view on where we put that particular personal attack perhaps. we'll all be joined by ben page. we'll talk to him about some of the latest polling information.
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we'll talk to mike spicer from the b.c.c. they put out this report, their quarterly update on how the u.k. economy is doing, which does have this interesting slant to it that you could say the economy has slowed a little bit in the first quarter compared to the fourth quarter. but as you were saying earlier, coming off a pretty solid set. guy: the fourth quarter was very strong, and as a result, it's very easy to have a bad quarter after a strong quarter, but there is some data that may see that line as well. it's one of the manufacturing numbers, etc., it's interesting to read between the lines. anna: and even the economist says maybe it makes more sense to look at their entirity and work out where the u.k. economy is, and generally the picture is still pretty strong, but the point they're making, and we'll pick this up in the program next week as well when we have some crucial debates on these subjects, the point they're making politically is that we need to see a boost for exports, we need to see a boost to investment. we'll talk about that. guy: the pound is down this
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morning. anna, thank you very much. we'll both be back a little bit later on at 11:00 london time with bloomberg politics. now still to come on "the pulse" -- super yacht showcase. we'll be joined by the c.e.o. of the brit mayor reason federation. yacht makers buyers, brokers, that's coming up right here on the program. ♪
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guy: good morning, everybody. 42 minutes past the hour. welcome back. you're watching "the pulse." we're live on bloomberg television. the super yacht u.k.'s annual tour of excellence kicks off next week. yacht brokers, buyers, etc. etc., from across europe and russia, will come to the south coast of the u.k. to do business with the best in british yacht building making, designing etc. how healthy is the super yacht market, and how big a contribution to our export market do these companies make? let's find out. for more, we're joined exclusively by the british marine federation c.e.o. howard. good morning. howard: good morning. guy: how big a business are we talking about sneer i mentioned the whole range of activities that takes under the umbrella. but how much money are we talking about? howard: there are about 224 companies involved, and they're generating about $449 million
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per year. we've got some leading, some global brands, we've got to the world leading luxury builders down plymouth. we've seen some coverage and that's a world-class super yacht building facility down there. but below that, what's the equipment that goes into the yacht? they're built around the world, but they're u.k. companies. we've got leading global yacht brokers. much of the professional services, the legal insurance comes to london, and we train captains and crews. guy: how much is for export? they're very keen to talk about the export story. how much of what do you ends up off shore? howard: we're exporting 35% what we produce in the u.k. exports are vitally important to our sector. we have a worldwide reputation for good design, good quality, and innovation. that's what sells abroad. it's a global sector.
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guy: why come to britain? howard: that's why we're doing our tour of excellence next week. we want to shout about that capability, the quality, the good design, the innovation we've got here. we're bringing in next week 17 individuals who are captains who are yacht owners representatives management companies. we're bringing him here for three days, and we will showcase what we do here. we're taking it down to the south coast, the factory visit, for meetings with over 60 companies to demonstrate their products. we then fly them down, and they're here for three days to see what we can do. guy: how important is it to them and to you what happens in britain politically, economically what the rate of the pound is, all of these kind of macro factors? howard: it is important. the strength of the moment is politics, our american clients are very interested in the eurozone and the u.k. in particular. so it is important. we talk to politicians all the time on behalf of the industry because we need the environment that's going stimulate our continued growth, innovation in
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the sector. we need support, so it's vitally important we have a stable economy and a stable situation and a government that supports our sector. guy: what's happening more externally to your end market? i imagine the russians used to buy a lot of these guys. i imagine the chinese used to buy a lot r. they still doing that? what's happening globally to the demand story? howard: the russian situation has an impact. it's more difficult for russian clients, obviously, but as i just said, we're being compensated by the interests we're seeing from american markets now. the chinese markets, developing markets, all our builders are looking for those markets. the global brand is important. these chinese individuals, they want a boat that's built in the u.k. guy: with british skills. can i ask you finally, to wrap this conversation up, the skills base that you have -- i know it's down through, from the o.e.m. through the supply
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chain, how much emphasis do you place on the skill set that exists in the british marine industry and how are you looking to amend that? howard: the skills are vital, and we've got to look to how we perpetuate. that over the last year we've been working to rewrite the industry. so we need to bring more people. there are exciting jobs in this sector, particularly in this sector. we need to demonstrate that more to young people and people who come into our sector. howard: good luck next week. the c.e.o. of the british marine federation. let's talk you through some of the other bloomberg top stories this morning and the legendary australian cricket captain and commentator has died. he was 84. he passed away peacefully in his sleep. the australian prime minister, tony abbott, told reporters the nation had lost an icon, and his family has been offered a state funeral. apex partners one of europe's largest private equity firms,
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is said to be preparing an i.p.o. they're seeking to tap a boom in mergers and an i.p.o. would give it access to permanent capital. and in an interview with bloomberg, turkey's economy minister has said there will nobody plans to change the central bank's mandate. >> the sensibility of the central bank is successful, but on the other hand, these measures and these decisions must support the growth rate in turkey. i mean, turkey, we have to grow. guy: coming up, we're going to look at the debuts of samsung and apple. we want to know, are you going to order an apple watch today? tweet us. ♪
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guy: welcome back to pulse. maybe we'll be tweeting on your wrist fairly soon. just watch this. that would be great. talking of which the apple watch is out today. the samsung galaxy s6 and s6 edge also available today.
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both phones have improvements over earlier models and are the latest entries into the high-understand smartphone market. bloomberg's correspondent had a hands-on look at the s6 and the edge. sam: this is the galaxy s6, and this is the galaxy s6 edge, and both have a lot of similarities. they're both using higher quality materials, like aluminum and glass, and they both are uses the materials in a range of bright and interesting colors. in both phones, you're going find the usual set of improvements that happens every year. you're going to see faster processors a sharper camera brighter, more vivid displays. but one improvement really does stand out, and that is battery life n. both cases, you can charge these phones for 10 minutes and have enough power to watch a two-hour movie. charge them for 30 minutes, and you'll already be up to 50%. you can now charge both of these phones wirelessly.
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of the two phones, the edge is by far the more radical one. its curved display adds extra space to display things like secrete notifications and allow you to access frequently contacted people. the side display can also notify you when one of your frequent contacts is calling you. you define them a specific color and the phone will glow in that color, letting you know that say, your spouse is calling. here's the thing about the high end of the smartphone market. it keeps getting higher, and samsung has clearly heard the calls w. models like these coming out in april, it's obvious they're not ceding the market to anyone. guy: for more on the samsung after apple battle, we're joined by hans nichols. so high expectations you could say for these galaxys, and samsung needs those high expectations to be realized. hans: well, when you look at
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the numbers they're expecting to sell, guy, they're talking about 50 million watches 50 million of the s6 this year. but you look at what apple did last quarter for their latest iphone the iphone6, they had around 74 million, 75 million units in just a quarter. we're going to get into a market share battle, and we'll have a nice grasp on this. when you look at what apple was able to do in china last quarter, they're the leading smartphone seller there, at least on the high end, so they took a lot of mambingt share from samsung with the bigger screen, and now it seems more like a fair fight. you know, it's always been a fair fight in the u.s. and europe. at least in asia it seems there's been a greater demand for the bigger screen. now we've got a fair fight. now the question is will apple respond to this curved edge? i still don't see the point of that. ive yet to be able to look at my blackberry or smartphone in any way. the idea that maybe you could have a little bit of an email message come up there, no one is really subtle about looking at their phone.
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i shoulder to think about how our children will be look agent their phones. i'm sure they'll just interrupt conversations all the time as though they're in important power lunches. guy? guy: yeah, like my children are already warming up to that. hans, thanks for your thoughts on the galaxy store. we've been talking to people all morning about whether or not they're going to buy this new watch from apple. let's give you some of the responses we've had on twitter. some are concerned it doesn't have a g.p.s. if you're active, if up to the use this as an exercise product, if you want to go out cycling, the lack of the g.p.s. may something of an issue. i know that some of the high-end sports watches certainly do have g.p.s.'s in them, and you can use them to track your exercise, which is pretty interesting. i feel like whether or not this is a look people are going to want i don't know. we've got another tweet show toe you. can you see yourself with one of these things on your wrist?
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hans: as long as it's tethered to your phone, i don't see the point of it. the samsung watch came in and out september and october, it had its own sim card. there's problems with the samsung interface with the reviews we read. until i still have to go out with a watch and smartphone, i don't see the point. if you're going to go running to track yourself and just want your watch on and you also need your smartphone in your back pocket, it has to be in this case an iphone, it doesn't seem like alot of season. i'm going to wait for them to work out the kinks and i'll get in 2020, 2018. you can buy me one. they'll be cheaper then guy: i look forward to that christmas present from you. hans nichols joining from us berlin. want to show you one final tweet actually. this is one that made me chuckle this morning. the new watches, a little chunky, quite chunky, battery life is poor, but i guess on the up side so that that it's probably going to keep the doctor away. so yeah, from a health point benefit, that's got to be
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there. deep right here on bloomberg television. that's it for "the pulse." bloomberg politics is up next for our european audience. over in the states, tom keene and his team running you through the rest of the day. we'll take a break, see new moment. ♪
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brendan says a meeting with cuba perhaps. the -- obama and castro will
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have some kind of encounter. no long lines for the apple watch. an hour ago, 5:00 in beijing, we look at china jk drinking problem. this is surveillance bang." i am brendan greeley. joining me, olivia stearns has another job to do. tom keene is on a beach. he is on a beach. let's get the top headlines. francine: it -- president obama is and panama. he will have his first opportunity to meet with cuba's president. in jamaica, president obama

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