tv On the Move Bloomberg January 6, 2014 4:00am-5:01am EST
>> 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 european headquarters here in london.
>> this is what is coming up on the program. inton's boat show sales town as britain's boating industry makes a comeback. we speak to the most prestigious yacht builder. >> we will be alive with the managing director of sunseeker. not much of it, around at the moment. >> we begin with a cold that is sweeping the united states. it is headed towards the east coast right now. temperatures are set to plummet over the next few hours. >> new york has been -30 degrees celsius. in chicago, it is even icier, with a high of -18 degrees. yes, that is the hide. officials are warning people to remain indoors as much as possible. these dangerous conditions will continue to cause chaos for travelers. >> more than 9000 flights have been canceled in the last or days and even more have long delays.
jfk has a huge backlog of flights. >> the airport was forced to shut for two hours after a plane skidded on the runway. children.for several schools have canceled all classes this monday. we will keep track of the situation and bring you updates on the situation. that is coming up later this hour. >> good for the children, not good for the parents. let's look at some data. eurozone pmi services data coming out early on. come throughve incredibly strongly. the difference between spain and italy is becoming quite clear. the german number is weaker than anticipated, still fairly strong. in terms of the eurozone confidence number, in line with expectations. >> completely in line. we were expecting 51. it is more interesting to see the diversions between -- the
divergence between countries. >> and the french numbers are weak. it will be interesting to see what jack lew is going to make of all of this. week withg later this wolfgang schauble will be fascinating. >> u.k. chancellor george osborne will set out his vision of a long-term economic plan today. he plans to fund tax cuts by reducing spending. the u.k. arecs in beginning to focus on the next general election and the message we will get from osborne today is very much part of that story. >> it is really about politicizing the recovery. yes, we are seeing stronger growth in the western world, but we will not be stepping back from austerity even though things are starting to pick up. we expect george osborne to drive home that message. on the tax side, he might give us a couple of clues about tax
employers.tivizing front and center in his argument is that that extra money will not come from extra borrowing. it will come from spending cuts elsewhere. that is where they pit themselves against the opposition party. badly in not doing too the u.k. compared to the rest of the eurozone. nextwill really decide the elections, we think, are things like immigration and there is not that much focus on the economy. >> it is starting to focus somewhat -- to shift focus somewhat. those that voted for him in 2010 have gone elsewhere. half of that 37% have gone to the u.k. independence party. front and center, a politicized aspect to it being
kicked around by both parties. the conservatives are in power after the next election to opt out of the eu. a lot of this has to do with immigration. >> thank you very much indeed. george osborne speaking in birmingham at 930 -- at 9:30. we will get some data on the economy as well. >> the british boat burning -- boat building industry got back to profit. there was cause for celebration at london's boat show. >> ryan chilcote is on the ground. maybe not on the ground. down at the boat show, very nice, ryan. >> a celebration it is. this boat show opens in an hour and they are already celebrating. hundreds of millions of dollars of votes and boating para paraphernalia for sale here. is called the cockpit. i know it is a bit confusing,
but that is the boating vernacular. let's take a look at the rest of it. this is a world debut, never shown before this weekend. this boat goes for $3.5 million. that is the starting price. this is the saloon. screen righth there, as you can see. notice the windows. a big trend in the boating world is to have a lot of glass and get as much natural light into the boat as possible. this, obviously, is the dining room. unfortunately, they did not leave back -- breakfast out for me. we will forgive them for that. this is the helm. this is an owner-operator boat. you can drive this yourself, though most people have crews. this is called the lower hull. there are actually two different places where you can drive the boat from. is au can see, there bottle of champagne on here, but it is obviously empty.
it starts at $3.5 million. if you want the media system on board, the price only goes up. that will cost you an extra 20,000 pounds. >> driving it yourself, i would not recommend that. then again, what do i know about boats? >> or even cars. >> how is the boating industry going, ryan? right.s all relative, sales and exports are up to places like the united states, mexico. china is a big prospect in the future. europe is sort of coming online. the user doing better. this was the first year they really saw that since the financial crisis. there are some pretty dark days here. eggs are up and they are very excited about that. sun seeker is seeing not just ,heir very expensive boats boats like this, sort of affordable luxury, single digit
million dollar boats, those are starting to sell as well and they are very happy about that. that is why they are celebrating. >> thank you very much. it is said that the two happiest days when it comes to boat ownership are the days that you buy the boat and the day that you sell the boat. we will be back later with ryan. he will be talking to the managing director of sun seeker. corporate news, samsung is looking to transition its smartphone technology onto four wheels. it is making a push and automotive navigation and entertainment systems. european business correspondent joins us with more details. >> why not look at the auto industry? the stats are phenomenal. than 150expecting more million cars to be connected to the internet. that is more than the entire amount of cars that were produced this year alone. the amount of chips, the value in each car, has rocketed up 65%
in the last decade. this is why samsung, which dominates about one third of the smartphone market, is trying to look at ways in which it can get its technology into the auto industry. some interesting ways in which they might do it, look for ofdows to be made transparent, flat panels, so that while you are driving, you can see a map in front of you and still see in front of you. sensors for passenger health. might just match your mood as you drive. all important, you could be analyzing the traffic, suggesting a better route that you might want to drive. all of this is ahead of the international consumer electronics show in las vegas. on focus is pure and center the auto industry. a record nine carmakers are going to be there. diu have the likes of au
reporting that they may be announcing a deal with google. is going to be a big one. samsung numbers out tonight andhtc -- out tonight. good start.to a >> they used to dominate a quarter of the u.s. market. not anymore. it is really a fault rum grace. , butlaunched a campaign still sales down 29%. they are down for nine straight quarters. they have their first annual loss. these are some of the ads they are using with robert downey jr. htcfunny ways for what stands for, a hipster troll car wash, a humongous tinfoil catamaran, perhaps? sales are down and clearly there is a concern about this company going forward. >> thank you very. caroline hyde.
bitcoins havef passed $1000 again on the mt. gox exchange after zynga said it would start excepting the virtual currency. they first crossed the threshold in late november and then plummeted. >> look at the volatility there. as theertook toyota countries six largest foreign automaker. the popularity of the ford focus helped them sell faster than any major competitor. >> chinese stocks hit a five- month low on evidence that it he can't ash that its economy slowed in december. the services age fell from the previous month according to hsbc and market economics. >> what do we have coming up for you? the race to create an nsa-proof phone. wanting toysicists supply alter secure devices for
just one customer, the german government. angela merkel and the ministers whot text her. about the nsa listening in, the two companies are receiving a surge in demand for what might be this year's davos status symbol, a secure smartphone. onwe have always been secure confidentiality. we think that what we are offering now should be attractive to them. code towrite lines of virtualize the android operating system. euros.ce, 1700 is inserted next to the sim card. you can toggle back-and-forth between the secure code and the
public one. >> this is all black-and-white. it must be in this compartment. if you switch to the light see it ist, you will normal android. >> their competition, a modified blackberry listed at 2000 euros. they offer discounts for bulk buyers and they claim they are more secure. becomes important. voice was not, important. there is value in your voice. ofthey have the stamp approval from germany's office of information security with a tender to sell some 10,000 devices. verbal has posed with the blackberry, but it is a closely- guarded secret which device will become the official chancellor phone.
be sortingoing to that story at. most and we will talk -- at davos and we will talk about it now. finn hudson ventures partner joins us right now. snowden changed a lot of in a lot of different arenas. a lot them have been in tech. we just saw the race for a secure merkel phone, sounds like the bat phone. how big of an investment shift have we seen because of this? >> security came back on the map. a lot of venture capitalists were not so bullish on the security agency -- the security industry. not a lot had changed. eye, a $7ee fire million opening. there is a resurgence of security, mostly driven by a cyclical trend. everything is going into the
cloud, which opens up a whole set of -- >> even if we had not had noting, we would have the chinese. >> the chinese, there was a report that the company that fire i just written -- just acquired says that there was a security team founded by the liberation army that was going through and hacking american websites and gathering all the everything from command- and-control systems all the way down to information systems. last year, google's australian data system got compromised because someone came through the heating and ventilation system. there was a weakness in the code and so they got into the data center. the benefit for us is that we access them from anywhere. the hackers can also access them from anywhere, meaning these things become weakened. of paranoiaa lot that u.s. companies are hand-in- hand with the nsa, that the nsa is being allowed access into their systems by backdoors or
whatever it is. still do not understand all of the mechanisms. how real is that as a threat? >> it is murky. we all worry about what happens when the chinese come and invade our systems. the truth is, the nsa is listening into as much information as they can do. that is how they gather intelligence and they can act on intelligence. it is their mandate to try to listen to everything. they need these backdoors to come in. it seems like every month, there is a release from one company or another saying that we either let them in or did not let them in or they bypassed us. last week, apple said we had nothing to do with this and the nsa said they could even drop on -- eavesdrop on virtually every apple phone out there. it will be interesting to see how the tech industry response to all of this. --re is clearly a bunch of there are good reasons to let the nsa in and bad reasons.
end of theata at the day, as consumers. >> when you look at the reality of securing systems, how realistic is that? the companies are coming threat the moment saying, we are in the security business. it strikes me that there will be never -- there will never be anything 100% watertight. >> you have a group of people trying to exploit the systems and a group of people trying to defend the systems. who is more dance? we all defend our computers, but as all of these services go into the cloud and the hackers get more brilliant, finding exploits around the services, they can do a lot more stuff. the next generation of security equipment defenders will defend these things. they are not going to defend every system out there. >> i have a burglar alarm on my and my neighbor does not
so the burglar will go to their house. i can spend as much as i can, but it is really a deterrent. >> if someone wants to get into that your systems, they will be -- into your systems, they will be able to engineer their way around. it is hard to break into your house, but it is really hard to break into the white house. you can spend a lot of money on security, it will be the same thing. every enterprise has limited staff at the end of the day. you cannot invest infinite resources on these things and that is what the hackers and -- the hackers exploit. that is why you buy security products to defend these things because you are always curtailed by the amount of resources thrown into these things. that is why there is a wave of innovation after innovation in these industries. the security systems have to get more robust every time. isry time that happens, it the next-generation security company they capitalize on this. >> francine, back to you.
>> welcome back to "the pulse," live on bloomberg television, radio, and streaming on your tablet, your phone, and bloomberg.com. >> we kick off the first full week of the trading story. what is it looking like? >> the chinese have underwhelmed in terms of services data. europe is actually growing. you would not think to look at this map on the first week straight. european services actually expanded for the fifth month. italian saw a contraction. confidence is rising here in the u k. cfo's are the most bullish in 3.5 years. can you imagine the power of a cfo and the risk appetite of businesses in the u.k.? what is all of that going to do in terms of employment and rates , interest rates in the u.k.?
act beforeforced to next year? the market says the rates will be over one percent by next year. the u.s. will get nonmanufacturing data, u.s. futures indicating lower. virtually unchanged. you will also get factory orders and there is only one number that matters this week. 195,000, the number of jobs that have been added to the u.s. economy. why? this will dictate what happens with tapering, whether it is a continuous process of $10 billion per month for the next several months, and that is the consensus from the pole that we have done here at bloomberg. let's dig into currencies. the dollar is just off a four- month high. just coming a little bit lower. the strong upward trend should continue. back to you. >> thank you so much. coming up, we will take you inside the most exclusive restaurant in america. >> it only has one employee. you have to eat in his basement
welcome back to "the pulse." we're looking at services data that is breaking now. >> is artie trading lower this morning. 58.8. i think it is a little bit weaker than we were anticipating. >> this is for the month of december. it is even weaker than we had in november. we had a reading of 60. we're expecting 60.3 and it went below 60 at 58 18.
clearly u.k. services sector is the biggest part of the economy by a considerable margin. as weakening is not going to play well politically. that is important because we have the u.k. chancellor speaking later. let's run you through our top headlines. the british exchequer will say spending will allow income taxes and job tax reductions to become permanent. >> the coldest air in almost 20 years is weeping over the central u.s.. chicago's high is expected to be -18 degrees celsius. snow, rain and ice will persist in several major cities. thousands of flights have been canceled. new york's jfkt airport, shutting the airport for two hours.
the airbus a 380 lost cabin pressure as it was flying from london to singapore. flight 317 landed at lock who airport just after -- landed atbaku airport. >> according to people with knowledge of the matter, the up theatte member will take >> it will beva. a relief to investors craving stability in the world's largest manufacturer of generic drugs which has been lurching from crisis to crisis over the last few months or so. let's not forget two months ago it parted company with its chief executive jerry -- jeremy levin. mr. goodman is quite well-known in the business and investment community in israel.
he is quite a seasoned executive. he is a former executive of strauss group. he is also currently the chief executive of the world's largest agrochemicals maker. it is itself owned by china. as he said, francine, he is a teva. heer t of has the trust of the investor community and israel and the trick is to translate that to the united states. have a new man but the same problems, basically. >> guy, my chemistry teacher used to say same woman different hat or just because you have a different face there in the form doesn't chief executive mean the problems will go away. the multibillion- dollar multiple sclerosis drug.
much you can do about that. it could make it huge dent in the revenues and profits of teva. that itself is a reason the company is downsizing a little inflate 10% of its workforce. they haven't exactly been doing wonderfully over the last two years. they are hovering around a six- year low. they're up a little bit today, but overall they have been at a six-year low. the confidence of investors. get off to could reasonably good start. he has the backing of an activist investor who had written a letter to other investors encouraging them to support the goodman role as chief executive. there was a letter obtained by bloomberg news. at least he has the support of shareholders or at least one of the big ones it would seem. >> elliott, thank you so much. one of the most exclusive
restaurants on the planet is located in a basement in new york. rachel crane goes belowground to taste the exclusive cuisine called native harvest. it is the kind of food you dream about. begins with a trip down this long winding road to the remote town of berlin new land, new york. could takessue, it you five years to get in these doors. 130 miles from manhattan, damon has created one of the
restaurants in the world. chef or cook, as damon prefers to be called, didn't attend culinary institute. he barely even worked in a restaurant before he built this house in 1985 and started serving four-star meals to willing patrons. >> it has snowballed over the years and it is all because of the guests telling other guests. we have never gotten media coverage ever. 255 dollars base price , allyou 16 to 20 courses conceived, farm, prepared and served by damon. >> we have from belgium, abu dhabi, dubai. harvest is much more the
big cuisine i have developed. it is essentially living off the land. table hear about farm to all the time but this is taking it to another level. >> it occurred to me that everything i needed was right here on the property. anyone who ever grown anything knows there is something about it that touches you. taking that it be able to server to guests is so rewarding and fulfilling. >> people ask me how do you do the during the winter? starch turns to sugar in all these vegetables and that prevents them from freezing and going into deep freeze. i've all different kinds of carrots, turnips, rutabaga, leaks, scallions, even garlic. i have more in common with daniel boone than any celebrity chef. > there's been a group on the list
for two years and the gentleman wrote that we are all in our late 70s-mid 80s. we want to come before we die. >> when people walk in to his basement another going to get one of their life. >> it is not just going to dinner. i like to treat every guest will become like they're going to be here just once come a once-in-a- lifetime. i may never see them again and i want them to remember it forever. that is what i try to do. anything can happen in five years. from food to fashion, men's fashion week takes place in london. .anus cranny is here we talk about ladies fashion all the time, but men's fashion .here it is a huge business 10 billion pounds. >> and growing. that is the point. there is a campaign on the underground. dolce and the bonner, your
gabbana -- dolce and kicked it off last night. the men's ambassador for london collection. colon -- is your forte and it is all about growth. 40 million pounds with the press for london collections, men. bur barry are coming back from milan. marks & spencer's are doing a preview tonight. >>m&s are always trying to get it right. let's talk technology.
>> 20 right write up the stories top shop and google plus, you get a front time, -- you same can buy the product as you see it live on the catwalk, live backstage. >> great, manus. thank you so much. guy, you're looking at another big london event. >> right, from fashion to boating. pullingish boat industry has surged back into profit following hard times during the financial crisis. ryan chilcott now reports. >> the london boat show is ushering in the new year with a swagger.
it is not just a first coach of the year, it is the first one in britain since the economy tanked , where people appear ready to drop some serious cash. >> there's a definite increase in terms of the orders put in. >> williams ought to know. they do best when they boat makers too well. going for as much as $80,000, they are the ferrari of the dinghy worlds, also known by the highbrow as tenors. the big boys are the main attraction, but there is a lot for me to get my head around. britain's boat industry is worth more than four and half billion dollars. it was by eight percent last year compared with a contraction of the same magnitude the year before. aren't the heady days before the crisis, but they don't look too far off.
>> ryan chilcote getting his feet wet, he joins us now with what else we can see at the boat show. ryan? out here.ugh job i will be talking to the managing director of sun seeker. that is coming up. it is getting a little tight on the 75 foot or some going to go check out the $9 million 90 two footer and get a little to her. all that right here on "the pulse. co. keep watching. ♪
thi first. bloomberg. >> welcome back to "the pulse yuriko china stocks fell this morning on further evidence that the economy is slowing. will be the number one global concern of 2014. joining us to discuss this is heater dixon. great to have you on the program, happy new year to you. is 2014 the year we start worrying about china back of >> is certainly one of the factors. i think it is primarily because we are less concerned about the u.s. and europe than we were. now we are focusing on the think thein china. i
bigger concerns credit. what is happening to the credit market. is a people's bank able to provide enough liquidity to keep it afloat. >> are the numbers reliable? >> ha ha ha. >> that is the million dollar question because we still don't know what we're looking at today. >> i think they are what we have. that is what markets react to. let's watch the numbers and see what they are telling us. divinewill see if we can a wider truth around those numbers. >> talk to me about europe. it is stated and it was last year or the year before that. what is 2014 going to bring? everyone says france is the one they're most worried about because it is big and has not been competitive at all. the political situation is also worrying because they have not as an incentive to be
more competitive. is2014 on the positive side likely to be characterized by an absence of big picture concerns. that is a good thing. as you said it is a stable environment. i think are going to start looking a bit more closely at the competitive issues. markets might start to look more critically at france because they have been given an fairly easy ride so far. >> at the same time the ecb dating,ry in, especially the bank of japan. >> the problems and structural issues which have afflicted europe are so going to be in play. as a consequence the ecb will be forced to be accommodated in the course of this year. >> in clued in qe?
>> qqq might be a step too far. -- qe might be a step too far. that europe faces are problems that the government needs to tackle. >> we have some pmi figures early from spain. they are a lot better than economists were forecasting. >> the spanish economy has surprised on the upside over the past 12-15 months. it does appear that a year or two ago it was in the crosshairs of the market. this was the next shoe to drop and it did not work out like that the banking sector problems still remain an issue. again, they are fading into the back burner. it is fair to say that when an economy such as spain or greece has taken a precipitous decline, you are going to get some form
of decent rebound. i think that is what we're seeing in spain at the moment. >> what about the u.k.? ?s going to be a political play 2014 remains a very tough year, he says. >> i don't think there's any doubt about that. we had a nine-month spell of what looked like decent growth numbers. with a it is consistent slightly slower pace of activity rates. i think that the chancellor, if you look what he is done with regard to policy, has tended to push out his sharp fiscal ties tightening. i think you have to take what mr. osborne says in the context, the political context, of what he means. >> thank you peer dixon of commerce bank. commerzbank.
>> liberty is giving a new stock that gives a satellite radio character a market value of around $23 billion. samsung is hoping to parlay its smartphone technology into navigation. it is partnering with intel on software that can run smart phones, tablets and car systems with software. it has garnered interest from automakers, including giants such as toyota. appropriately, walt disney's animated film "frozen" returns to the top of the animated box office. it is about two princesses in an icy world and is in its seventh weekend. the latest installment of the hobbit has led the lead for three weeks previously. talking of frozen, winter storms in freezing temperatures in the u.s. are forcing households to turn up the heat. it has been a warm, wet winter
december in 10 years. as you've seen from the pictures, u.s. demand is surging as a country braves the coldest weather in decades. good morning. idea ofget the rough what this means to utilities on the other side of the atlantic, but delve deeper into what the implications are. >> the cold weather in the u.s. is going to put pressure on the utilities there, particularly in the northeast, to make sure they have enough gas for the winter. last winter when it was this gas using import gas,ied natioural diverted gas away from your. >> was that mean for the utilities involved? in terms of the actual numbers they're going to be generating and with the margins will look upn very >> as you look at utilities, they are selling less
gas, less revenues and profit rate some companies who are lng traders made be able to arbitrage between europe and the u.s. and asia. it may be the year of the lng trader. >> the us market is long way -- is largely a liquefied. as a start to change come as we get more and more events like this, how will that impact future energy planning? >> the first thing is we are not kind to get those terminals until 2016 or 17. this year the department of energy will have to make some decisions. that in turn increases global gas liquidity, so they're trading globally and that means we might begin to see if not then at least trading. >> who are the main names we should be focusing on?
>> bg plc, biggest producer of lng globally. running their operations. >> chris, nice to see you. chris rodgers joining us from bloomberg industries. francine, back over to you. >> thank you so much. for the listing on bloomberg radio, bloomberg first word is next, for our viewers a second hour of "the pulse" is coming up. this is what we'll be talking about. we have sun seeker managing director at the london boat show and then we speak to the bloomberg chief economist about the janet yellen confirmation. all that and much more coming up on "the pulse." you can consult us both on twitter. guys at guy johnson tv and we will see you in a couple of minutes.
>> 9000 canceled flights and counting. the travel chaos continues as the u.s. gets hit to the coldest weather in 20 years. >> the weather is not great in britain either, but that is not stopping london's boat show from humming into town as the boating industry makes a comeback. we speak with the prestigious yacht builder sun seekers managing director stuart mcintyre. >> the slowest growth in the second largest company in the world. ♪