>> our beloved nelson mandela, president of our democratic nation has departed. >> farewell. apartheido overcame reaches the end of the journey that took them from prisoner to president. >> it is jobs day. a role data could leave the u.s. track for the best year of job growth since 2005. >> japan's prime minister calls for a summit with china to ease tensions over the islands.

good morning. welcome. " live watching "the pulse from bloomberg european headquarters here in london. >> also coming up on "the pulse ," the boss of one of britain's businesses, nigel wilson joins us and about 10 minutes. get his take on everything from the u.s. jobs report to the autumn statement. the news cycle is being dominated by one thing and that is the passing of nelson mandela. south africans are mourning the death of their first black president this morning. leaders around the world pay tribute to his life. johannesburgin yesterday. .et bring in tv africa anchor clearly south africa in a state of shock this morning. we knew he was ill -- we knew he would be in intensive care and for quite some time, but

the shock of the reality of the situation changes so many things. >> i was in shock. we had been covering the story for quite some time. you for theares death of a man that people respected, people loved. also a man that changed the fate of the country, that could have been in a very difficult position after he was released from prison. chose toin jail and he study. he chose to read up on philosophy and understand the s -- process and understand how to communicate with people. he walked out with a humble heart and united the country. >> what will he be remembered for? we hadn't seen him for many years and yet south africa will feel a big loss. country change after that? been in the public eye for at least the last five years. retired in 2004 at the age of 85 and he said that he wasn't

going to get involved in politics. what he did do after that, he the world magic at cup for 2010, he also was present there. him in various press ensure that his -- he made it something positive and started world inaround the eight of hiv and aids. that is where we saw him really getting involved on the social side of things. he is going to be remembered for helping with the constitution. he is going to be remembered for his smile, the fact that he africans and broke tensions and was able to change enemies and befriend them. >> he could do the impossible, really. >> it could have gone badly badly wrong. guess --question i there is going to be a lot of looking backwards -- what does

south africa look like moving forward? this was a man that bound a nation. you had this sense that as long as he was still around, you thatn't get the split maybe could have been so detrimental to africa's future. now the situation has changed. >> we have split in the african national congress and various the country which are very evident. that is the concern. what i am thinking is going to happen just looking at some of the visuals we have seen, we seen people from all walks of life uniting once again. south africans are very good at uniting but they are also very good at splitting. i think this will perhaps bring us back to the notion of what nelson mandela stood for. , look atis rhetoric what he wanted for south africa. i think south africans are going to look inwards and say, how can change the situation? >> thank you so much for all of that. eleni giokos. >> let's go to johannesburg. bloomberg news reporter tony

joins us now from there. tony, the morning after the night before -- what is the mood for the country? >> it is very somber but i don't believe people are particularly surprised. he has been in and out of hospitals for many years. people were prepared for this day. people are gathering at his johannesburg and also at his old house. flowers andng generally people are trying to life rather than be overly mournful. situation butult it is something that the nation is dealing with. have seen a lot of tributes from world leaders around the world. a lot ofhe mode -- people are rallying a lot of people showing support and --embering nelson mandela and a glimpse into what it is like to be on the ground?

>> i think that most people are still in shock. it is very quiet in johannesburg. what we are getting -- we are getting a lot of reaction from friends. , manyiends from the anc of whom were in prison with him. they are really paying tribute did topast and what he make south africa the nation it is today. so far it is a quiet, somber mood. people are doing their best to highlight what he did for the country. well on the positives. >> happens next? -- what happens next? >> always know so far and this is from state tv broadcast is flown tobody has been militia hospital. we are expecting an announcement shortly telling us what the funeral arrangements will be.

when everything will take place. i suspect a lot of international leaders will start arriving in the country for the funeral and we are expecting a rather long process where the nation will reflect on his life and there events lots of culminating in a few days time. >> thank you so much for all of that. we will keep on crossing live to johannesburg for the paris latest. back. the office at goldman sachs joins us with more on nelson mandela's impact on the country. >> a number of big stories to focus on. later today we will get the u.s. jobs reports. our markets editor manus cranny joins us now. what are we looking for? >> let's go with the consensus. 100 86,000 -- it is like this. i have looked at a couple of different reports. the consensus seems to be, when take the private adp report

and the services data which was a little bit weaker, the market is already pricing in something north of 200,000. it is going to be one of those days when the good news plays in. gdp numbers were pretty good. home sales also rebounding quite nicely. exports doing very well. for me it is about velocity. and volatility coming into play as well. velocity because this year is going to be the best year since 2005. the average growth over the years, 186,000 -- it comes down to the quality of the jobs and that is possibly what is going to be reflected on more so. are market pricing in a treasury report? >> have a look at the 10 year government bond yield. near three-month highs. what you're getting towards is of 3% whichd level you last saw on the sixth of september.

really, this is where it begins to play in. we are only one good payrolls number away from a complete unwinding of the bond market. that is quite a significant statement. that 3% level is going to be critically important. traders are getting ready for more volatility. sense coming through is that a december door of tapering is just open. socgen who are one of the primary dealers. have a look at the index which shows you the volatility. traders perceiving the next month? some news on get tapering in december, it could nextfold into earlier year. >> manus, thank you so much.

the big data of the day is

>> when you look at what happens presence doesig a the fed and the fed tapering and the possible story about rate hikes feature in your analysis? a big risk but we are confident that more jobs will get created in the united states and in the u.k.. we have to create better jobs going forward as we develop a richer economic model. investment forn more on export than just consumption. >> so your worldview is that the u.s. is growing nicely and that growth will continue.

maybe a little bit slower than economists are expecting. >> we are a bit more bullish on america. america is the country of great innovation. have their entry policy finally sorted out which is very positive for the world economy as well. there seems to be the argument -- they are talking that the normal , he ise of unemployment looking at that and going, we can fix that. we cannot better paid jobs, more jobs, we can change the dynamic through innovation and thinking about the problems that we face. how realistic is that? do with the unemployed men story on both sides of the atlantic? >> i am having lunch with larry today. i will carry on afterwards with him. if i could just revert to the ec1 investing enough. investing has been very poor. we are sitting on huge amounts of money. ins of people want to invest

u.k. plc. the announcement earlier in the week, opening the doors to create higher-paying jobs. we are creating very poorly paid jobs. we have to create higher-paying jobs here in the u.k. and create real economic growth. the u.s. has a similar problem. wages haven't risen for over 20 years. we have been doing something's wrong. of investmentck in infrastructure and other areas. we have exported to much of our capital expenditure to china. china has 25% of the world only 11%nvestment but of the world gdp. we have to rebalance that. >> how big a risk is that? people are talking about that as ,eing the next financial crisis when japan's poor investment story comes home to roost. >> the chinese returns are very

poor but i would never bet against the chinese economy. western economies have been doing that for 25 years and have been always wrong about it. it is a miracle what they have achieved over there. see it firsthand, you realize the huge energy and cleverness in the chinese of developing their economy. >> we will get back to infrastructure and government in just a second. what is it going to take for companies? you're saying a lot of these big companies are still sitting on cash. there must be catalysts. what is it going to take to unlock this cash? we have a regulatory environment and economic environment positive and stable. environment is one where we can see growth. not only in the u.k. at economy, but in the export markets. the prime minister is doing the right thing by going to china. we have a pathetic record in many of the fastest-growing economies in the world in terms of export. we have no interest in those economies for delivering exports. that is a primary risk to the u.k. economy. he haven't got enough export

infrastructure. the government has to play a more positive role in developing the infrastructure around the world. >> let's talk about infrastructure and focus on what we need to see. have -- you are part of a group of insurers that are to invest in the infrastructure story in the u.k. over the next few years. we are seeing at the moment a lowball number? solvency rules have changed, regulatory roles have changed. a much more is there? >> i think there is more than that. if we want to get a realistic number, i think the treasury did a fantastic job in developing regulations for the u.k.. hold ridiculous that we bonds outside the u.k. to hedge our u.k. liabilities. this will enable us to you -- invest in the u.k.. a very sensible solution by the treasury and the regulators to allow that to happen. how much we will invest, the is 25 million. he could do more if economic growth is better. >> have you committed more?

>> the rest will come if the economy develops quicker. as we see infrastructure, we growth, higher real wage growth. i think we are committed to 25 billion. we will see how we go. >> and the project you would like to invest in our? old range of projects. our programs and housing lester was pathetic. we would like to make a much bigger contribution in the housing area. we would like to invest in energy, transport. we would like to invest in education in the u.k.. we would like to invest in health. we have projects in all of those areas that are ongoing at the moment. i am hoping even in the next few we will make one or two announcements indicating the scale of the opportunities that we have here in the u.k..

>> nigel, thank you so much for now. as we had to break, the world remembering nelson mandela. south africa's first black president passed away late yesterday and the tributes are pouring in. this to say.ma had >> to the people of south africa, we draw strength from the example of renewal and reconciliation and resilience that you made real. africa at peace with itself. an example to the world. that is the legacy to the nation he loved. ♪

>> nigel wilson is still with us. he is the ceo of one of the uk's biggest companies. talk to us about floods. we were looking at dramatic $ç#p10,000 people still have no electricity today. you said we have learned a lot of lessons from the past. and ourselvesent and numerous others have played a key role in how we deal with floods here in the u.k. and the today are much better than they would have been a number of years ago. we have had about 700 claims so up from ais about 200 few weeks ago. it is a bit worse but not much worse. we have got our people working through the night to deal with all of the claims.

at -- traumaook stories,een the funny the pictures we are looking at, and the picture we were talking about earlier on. infrastructure, is there more to do? is this as good as it gets? where peopleworld are concerned about global warming, about rising sea levels. part ofing to be a big the economic picture? >> i think we have got it in hand now and we know we need to invest more. we will continue to invest more as a country and an industry. are not going to get it to a point where some of the stuff is uninsurable? agreement -- so far we have been in business for 177 years. continue to ensure all of our customers' stuff. living --mitted to delivering great service for customers.

>> you have grown organically. 2015at still the 2014 plan? >> we will continue to buy businesses where appropriate. opportunities as we were talking about earlier play a key role in using our capital to grow. >> the government -- governor of the bank of england has talked about a strong city of london. he still sees finance as being a large part of the british economy. is that the right course of action? to bewould like finance strong but we would like a broader-based economy which goes back to this earlier theme about the right infrastructure. there is lots of opportunity for growing other industries. america does a better job of creating new businesses all the time and has real intellectual debates about the right things to do. we haven't really got that level on here in the u.k. about where we should be positioning our macroeconomy for growth going forward.

we would like to play a bigger role in all of that. we would also like to play a bigger role in investment. we have got plenty of money to invest here in the u.k. >> is that changing? as we see more infrastructure, is the u.k. being more in sync with the u.s.? >> what we saw after the tech situation where a lot of great companies were created. google, facebook, apple, guess where they all came from. they all came from one country. we need to see real innovation services to produce socially useful financial products. in 2006, 2007, 2008 productsss financial which resulted in a financial crisis which has taken years to get out of. our infrastructure is a consequence of collaboration between government regulators and industry. we need to see much more of that going forward.

nigel, thank you so much for all of that. we are going to take a short break. after that, we go back to the coming out of johannesburg, the death of nelson mandela. ♪

>> welcome back to "the pulse" live from bloomberg european headquarters in london. >> these are the bloomberg top headlines. >> the port of hamburg é been german and danish with ace close -- cope powerful storm. it moved ashore last night prompting the city to close its floodgates. at least two people died in the u.k. and more than 100,000 are without power. the japanese prime minister has called for a summit with china.

shinzo abe wants to ease tension with the country that has spiked since china announced an air defense zone that covers islands at the center of a territorial dispute. abe says the relationship between tokyo and beijing can never be severed. world leaders and well-wishers are mourning the death of nelson mandela. you're looking at live pictures of people outside his home. the former south african president died yesterday come aged 95. atlet's take a closer look mandela's life and the legacy he leaves behind. take a listen. >> the free man taking his first steps into a new south africa. >> from prisoner to president, nelson mandela's 1990 release end ofil signaled the south africa's racist policy of apartheid. on to become the country's first truly democratically elected leader. >> i, nelson mandela, do hereby

to be faithful to the republic of south africa. a born in a small village to local chief, mandela was one of 13 children and the first member of his family to attend school. in the 1940's, he began opposing minority's policy of apartheid laws that segregated society. first, mandela was inspired by approach of nonviolent resistance. as white south africa became more aggressive, so did he. as the head of the armed wing of the african national congress, mandela led violent sabotage attacks and was arrested and in 1962. he would spend 27 years in jail. he was never forgotten. eventually, international and

internal pressure led president klerk to announce apartheid would be dismantled and mandela would walk free. rather than seek richer view showing, nelson mandela reached oppressors.ormer he tried to heal a divided nation. and the clerk -- de klerk shared the nobel peace prize. >> in 1994, he voted for the with millions of his fellow black south africans. became a statesman and international icon. for south africa he was a symbol of the country and wanted to be despite struggles with poverty, and --

>> free of hatred, free of ofterness, free of any idea revenge. --many will remember this mandela celebrating south africa's place on the world hosted the 2010 soccer world cup. >> he is a great man. africa loves him. >> a simple tribute from a child sums up his place in south africans' hearts. >> thank you for our dignity. about the legacy that this man leaves behind. let's go to johannesburg. ellen kullman joins us from there. he has written major reports for the investment bank analyzing mandela's impact of the country. good morning. condolences to south africa for the passing of the man. talk to us about the impact he had. talk about the difference th mandela made.

>> he really transformed the soul of the nation. culture,e soul and the we witnessed an economic and political transformation from a past to a society that has stabilized, that has moved , that has tripled its gdp since he came into office in 1994. brought inflation down and made a country that is really well- positioned for the future. of the difference he made, it could have gone another way. i remember the day as he walked out of prison and you kind of sensed at that point a tension that there was an unknown story about to be written. how bad could it have been for south africa? >> there was nothing written in the rulebooks that this was going to be a happy story. at the time, the security manyst suggested that as

as one million people could die in the conflict surrounding the first election. he played a very instrumental role and i was very important -- fortunate personally to the part of the constitutional himtiations and witnessing ticking very difficult decisions to get us through that process bring everybody into the elections at the last hour. >> what impact has he had on the leadership that is now in place? >> absolutely fundamental. the whole anc culture has been affected. the party has been affected by .is fls --ethos hopefully over time that will be his legacy. example which was an example of humility but at the same time authority and ability to make the necessary compromises

and take the country forward. >> mandela even out of politics was a sort of binding agent. he kept the country together, some would say. he is gone, now that that influences in there, what happens? >> just for your viewers, south today although very somber is peaceful and calm. reflects the fact that we will be celebrating this life where he made this contribution but it is not a case that the country depends on him. he retired some years ago. it has been very much in that retirement and he was famously don't call me,g, i will call you. he stuck to that. south africa has been governed in his absence for many years. although his personality and

vision have played a very important role. particular bad outcome here. i don't think this is going to be an ugly event. i think south africa will celebrate of the world will celebrate a life extremely well lived and hopefully this will see a peaceful transition going forward. >> give me a sense of the challenges. the challenges is that the country now faces. day where we will get payroll data out of the united states. give us a sense of the economy that he leaves behind, the of this nation to feed and clothe and educate its people? >> this is a country that is half $1 trillion, 52 million people. we have a significant structural 25% narrowith

unemployment, 36% brought unemployment in absolute numbers. 14 million people working, 7 million people not. that is a big division of income between whites and blacks. poor and moste whites are well-off. anothertake us generation to work through these structural imbalances for sure. if south africa increases its rate which is currently 5%,, if we increase it to we should be able to bring the unemployment rate down to half levels and the at the cusp of between a middle income and a high income country if things go well. those are the ongoing structural difficulties we face. quantitative easing paring back is going to shine a light on emerging markets in general. particularly countries like

south africa. hopefully, we will through the leadership that has been put in years, much of political leadership but institutional and societal leadership, the able to weather the storm. >> thank you very much indeed for your time, colin coleman joining us from goldman sachs. >> my pleasure. >> as we had to break, but tributes keep pouring in. bonoians and humanitarian says it wasn't -- it was as if teach the age of lesson in humility and patience. nelson mandela showed us how to hate because he learned love would do a better job. ♪

>> good morning. " live watching "the pulse from bloomberg's european headquarters. will draw the 32 teams who have qualified for the 2014 world cup in brazil. while the teams and fans wait to hear what nations will face off, brazil. are on jonathan ferro joins us now with more. walk us through what is about to happen. this is a big deal. >> you find out who you are to aware --g, when i'm when, where, and why. you go online and book your flight, but your hotel and try

thoseure one of goldplated tickets. visitors expected to go into brazil for that one month alone. they all hope they can leverage that for financial reasons. this is big business. >> the airlines will be ready, the hotels will be ready. will there be anywhere to watch the games? >> tonight should have all been about showcasing what is available for next summer. these new upgraded stadiums unfortunately are not all going to be ready. they were meant to be ready by the end of this month. we are now looking at january. the economy contracted. a lot of concern in brazil at the moment. >> you get a sense that the designed to shine a light on the positives of the country, to get it to the front and center. you don't want the kind of that we have got at the moment. >> everyone is looking at you. over $1rica spent just

billion of stadiums. brazil is spending three times theuch and everyone in country is asking questions, why? we need upgrades to infrastructure. there are a lot of people who need help. you saw it over the summer. a rising middle class demanding a -- more out of their government and asking why. they will be hoping the losses on the stadiums don't continue. >> thank you very much indeed, jonathan ferro. let's continue the conversation surrounding brazil. >> at skidmore on brazil after the tragic accident. brazil is set to meet the december deadline. while the stadium will eventually be complete, we want to know what deeper economic issues are thwarting progress. i am joined by gary greenberg, head of emerging markets. rate to have you on the program. talk to me about the stadium. the images are remarkable.

it is also symptomatic of what brazil is going through. brazil actually had a very tough time recently. they are paying for a number of missing what should have been years of building infrastructure and transforming economy. ance 2002, it has been country that has been too relaxed and writing on the chinese import wave without really transforming. now they have got an economist as president. it is not working out a lot better for them either. >> one of the points that you make is that brazil continued to petrol and that is using -- hurting them. brazil could achieve energy independence and a couple of years if it doesn't kill its golden goose. investing a lot of money but the government is preventing it from earning any money. by using it to control

inflation, keeping its prices down. in the meantime, it is building up a lot of debt. it is a very dangerous game that is being played and one that doesn't really make sense economically. >> how disappointed are you with brazil? two or three years ago, this was the country that investors must like. slowly it has been disappointing. what is it going to take for brazil to turn around? >> it is going to take a different attitude on the part of government. brazil is potentially -- what they say about brazil is it is a country of the future and always will be. hopefully that won't be the case and they will be able to step with theireddling state owned companies and allow them to just get on. they need to focus on education and infrastructure in the -- fine,away from world cup is a great thing, but the country has homework to do. unlike china, they don't seem to be addressing it. >> what needs to change apart

from politicians? there are labor reforms that place, a lot of foreign companies are concerned about doing too much business in brazil. >> they are concerned. it is very difficult to do business in brazil. there is a lot of corruption still. company -- country with theation as embedded in system, it is difficult for them to get rid of that. with education reforms, infrastructure reforms, brazil begin to warm up the just-added chain and not be an exporter of iron ore and soybeans. that is where they need to go. whether they get there or not is really up in the air. the market has really performed the currency has performed poorly. they are a little more competitive now that the currency is cheaper. >> gdp was very disappointing. it get worse before it gets better?

>> i don't think it will get a lot worse. it should narrow in the next couple of years. the market is so out of favor that maybe there are bargains there. electromed russ is down from about six on its shares. things are cheap and you don't bargains unless things look gloomy. >> i guess currency would not be a bad deal in this kind of environment. >> it is corrected a fair amount. brazil willle that bump along the bottom until if thefter the elections policies that the government has put in place change after the elections -- brazil could perform better. >> thank you so much for all of that, gary greenberg. guy. >> let's bring you up to speed with company news. a deal is valued as much as $3.6 billion as part of a plan to lng, liquefied natural gas

projects. help --n china will outpace industry sales. news comes as chinese consumers return to japanese brands. suntory plans to hold off on acquisitions for a year. the japanese drinks maker wants to integrate past deals and bolster existing operations. suntory has had asia's biggest ipo i can 2013. earlier this year. morningp, south africa elton mandela, its first black president passed away yesterday. this is but the current president had to say. >> our thoughts are with the people who today loss of the one person

who more than any other came to embody their sense of a common nationhood. ♪

mandela,loved nelson the founding president of our nation has departed. >> we have lost one of the most courageous and

profoundly good human beings that any of us will ever share time with on this earth. he no longer belongs to us. he belongs to the ages. >> one of the brightest lights of our world has gone out. nelson mandela was not just a hero of our time but a hero of all time. >> nelson mandela was a giant justice. world were the greatly influenced by his selfless struggle for human equality and freedom. >> and a strange way, quite happy. he led an extraordinary life. he really wasn't alive to the world over the last two years. he really just didn't know what was going on. thatthink it was merciful he has finally died. he has just left the most incredible legacy.

i don't think that anybody in has meant morey to the world than nelson mandela. >> the world remembering nelson mandela, the former south african president and anti- activist died yesterday. age 95. for those listening on bloomberg radio, the first word is up next. for our viewers, a second hour " is coming up. the irish finance minister joins us in the next 10 minutes. >> the country prepares to exit its bailout program. it will do so on the 15th. we are going to talk about tech city, the ceo of tech city will be joining us in the next hour as well. of course, it is jobs day as well. taperingming of said -- we talked to an economist and the legacy of nelson mandela. >> we will take a lot of time talking about nelson mandela.

we will review a series of ceos from africa to give us their take on what nelson mandela meant for their country, for their business and for their future. all of that will be in the next hour of "the pulse." it is jobs day. the markets are going to be paying attention to not only the yougs you see in front of -- these are live pictures coming from outside nelson mandela's house as the country white mourns the passing of their former leader. meantime, you can follow both of us on twitter. >> we will see you in a moment with the second hour of "the " continuing right after this short break. stay tuned. ♪

,> our beloved nelson mandela the founding president of our democratic nation, has departed. >> farewell madiba. he reaches the end of a journey that took him from prisoner to president. >> it is job stay. -- job's day. >> and all of branch from japan prosper them and us to her -- japan's primerom minister.

good morning to our viewers in europe. a warm welcome to those just waking up in the united states. >> this is "the pulse." noonan joins us for an exclusive interview. first, let's get to our top story. south africans are mourning the death of their first black resident, nelson mandela. -- president, nelson mandela. he died in johannesburg late yesterday, he was 95. >> let's go to our johannesburg reporter. anthony, talk us through what has happened since the news of the passing of mandela was announced.

the news was announced just before midnight. instantly started flocking to his current tom and his former home -- home and his former home in soweto. they've have gathered singing, celebrating his life, basically morning -- mourning. there has been no official announcement on what the funeral plans are. his body has been flown to a military hospital in pretoria. that is what everyone is waiting for -- when and where the state funeral will be. a lot of tributes are being paid by his friends from the

apartheid era. in addition, we have had world leaders like president obama paying tribute to his life and we are really waiting to see what happens now going forward. >> as you say, we are going to in which we pay tribute to the man and that we will have his funeral. presumably, the logistics of that funeral are going to be something because world leaders will be pouring into this country to attend that event. >> yes, i think so. does not come as a surprise. he was a very old man and has been ill for a long time. i'm sure there were thorough preparations. bigsure it will be a very event, a big, big moment in the history of the country.

>> thank you very much indeed. >> for more on nelson mandela's bloombergt's bring in tv's africa anchor. what is his legacy? hewhen he became president, engaged with all of the chief executive officers. find outth them to what the investment prognosis was. heading up to the elections, he ensure that they wanted peace -- he engaged with the investment community and embarked on a tour around the world, which assisted in south africa getting rid of those sanctions. we saw growth growing from to around 3% after the

democratic elections. those are some of the things on the economic side. an important man for south africa. on the 16th of december, south africans celebrate the day of reconciliation. it will be interesting to see what the government chooses to do for the funeral. when you look at what he has achieved, what is going to happen moving forward here -- you bring up reconciliation. the reconciliation story was so big for this country. it is united now. that worked. some would say. there is no risk that that also part? >> i don't think it will fall apart. at the african national congress, the political party that nelson mandela help d, he came up le

with a lot of philosophies for the african national congress and they have created more factions and political parties. in terms of south african stability, people are coming together, their morning together -- mourning together, laughing together. we are looking up unemployment of 25%. 36%.loyment is sitting at inequality is huge. the gaps are starting to close, but it is a very big problem. they brought in affirmative action to assist with that to create more stability. we're still a young democracy. 20 years in. lots of work to be done. >> thank you so much for that.

>> let's move over and talk about the jobs report. the employment report comes out later today. we are expecting some fairly decent numbers today. let's go with the top line. what hundred 85,000 -- that is -- 185,000 -- that is the number everyone is looking for. 100 86,000 would be the best 186,000 would5 -- be the best year since 2005. side becauseto one they will not deliver a reduction in stimulus until there is a consensus at the fed about how to complement this.

what do you do? refining the thresholds. you have to listen to the noise coming out of the fed. the federal reserve bank of cleveland put out research -- if you add an inflation flaw of raise untilon't inflation gets to that level. the messages is got to be pretty clear. stimulus, you have to be thank to everyone on the market that rates do not rise for a long time. >> thank you so much. ireland is set to exit its bailout program. >> yes. manus cranny for more details on what lies ahead. wantedand has always their own independence and

fighting for it and going it alone. that is what this is about. they're ready to look after themselves through 22015 they are doing it without the -- to 2015. less oversight and mario draghi says it is a good thing. the bond yields and ireland were 14%. to 3.5%.w sometimes it is better to have belt and braces rather than just braces alone. market is warm toward ireland at the moment. how will be focusing on does ireland deal with the property mortgages? ireland $1ting billion per year.

little bit of goodness -- they have taken out $5.9 billion from a bailout. we will continue the conversation about ireland after the break. our exclusive interview with michael noonan. is what istime, here on our radar. japan's prime minister has called with a summit -- for a summit with china. he says the relationship between tokyo and beijing can never be severed. >> the port of hamburg has been closed as a powerful north sea storm moved ashore last night. london also closed the gates to the river thames. two people died in the u.k.

more than 100,000 people are still without power. >> alan mulally will stay at the carmaker through 2014. that is according to one of the members of the company. be one of theto leading candidates for microsoft's ceo. >> we have an exclusive interview in the next section. ireland's finance minister michael noonan will join us. he thinksnd out what about the story moving forward. ♪

>> welcome back. >> i am guy johnson, that is francine lacqua. ireland is set to exit its 85 billion euro bailout program next week. three years ago, ireland was rescued. it was the first of the eurozone bailouts to not need outside help. >> thank you so much for joining us. how are you feeling about december 15? it must've been a very difficult three years. you are out of the woods.

it is going to be ireland on its own. >> i feel very good about it. we struggled. three years is a long time in charge of a project. we had our ups and downs. it has been positive for the last six months or so. you're confident that we will have success. we have significant cash buffers. we are fully funded. we will refresh are borrowing with the americans in january 2015. we're doing fine. a lot of people want to buy our paper. we sold a preference to the bank of ireland. 1.8 billion -- it was oversubscribed. a very good price, beyond our expectations.

any time that we try anything which costs money, those international banks are backing -- we are pleased with that. >> do you think we will be upgraded? withe problems seem to be the eurozone. they have a more benign view now of the future of the euro. they upgraded spain and they tweaked portugal's ratings as well. we will look than moody's will have another look at us in the new year as well. >> it is not a done deal the? -- though? >> you never know with a rating agency. the mood is that it is positive at present. >> you feel confident about the eurozone? >> very confident. there were a series of crises over the last 12 months.

the eurozone is now quite strong and quite stable. stable, is the currency there is a common fiscal policy as well. we are on the margins of having a banking union as well. we will have another round of discussion on the last element of the banking union, which is putting a resolution fund in place for any banks that go under in the future. >> why did you decide to completely go it alone? why didn't you leave yourself some room for maneuver? the opportunity to avail yourself of the omt? it seems there were other options, but you have taken the most radical option, some would say. was a fairly balanced decision. i took a lot of advice from

people like christine lagarde and mario draghi and some of my colleagues and finance ministers. it was the correct thing to do. with the reaction of the markets and the rating agencies -- it has proved to be a good decision. a are not going out without backstop. we have significant cash buffers -- over 20 billion. the. right now -- the period right now is very benign. if we had a line of credit, it would be a 12 month duration. i couldn't predict that things would be as stable and 12 months as they are now. getting a line of credit was deferring the decision for 12 months. that provided a difficulty. it was never clear that if we applied for a line of credit and went into a process where it

would have to go through 27 parliaments and conditions might be added on in the journey through the parliamentary process. we would have been buying into something without fully knowing what the outcome might the -- be. thing to do correct and the reaction from the international markets and our colleagues has proved that to be correct. access to thehave omt now. is that true? >> there was a lot of talk about open take is very answers being given. ue answers yang given. beinga mechanism -- given. it is a mechanism to aid the eurozone with a systemic problem and would apply to a series of countries. any country that might avail of

, all of them would get omt, but it would be subject to condition. definition they would be in programs. having a separate program in advance, it does not improve our position. or disapprove our position. that is my understanding. >> thank you so much. >> we will take a break. south africans are mourning the death of the first black president, nelson mandela. leaders around the world pay tribute. ♪ mandela, theelson founding president of our democratic nation, has to parted. the mostt one of influential, courageous, and profoundly good human beings that any of us will spend time with on this earth. he no longer belongs to us.

he belongs to the ages. >> one of the brightest lights in our world has gone out. no cement ella was not just a hero of our time, but i hero of all time. >> he was a giant for justice. many around the world were greatly influenced by his selfless struggle for human dignity, equality, and freedom. ♪

>> we are back with the irish finance minister, michael noonan. we were talking a little bit about this bailout and the fact that you are exiting. let's talk about the banks. we have had the initial results from the banks. there was a lack of detail. a lot of investors concerned that the lack of detail may point the need to more capital. asset quality review extended to the whole european banking system, the decision was that we would go ahead anyway and this is part of the general round of asset quality reviews. the stress testing will take place next november. it is not correct to say that

the detail is not being given out. the bank of ireland give up a lot of detail -- all the detail they had available -- and advance to going to the markets. question,two banks in they will travel to all the information they have in the next couple of weeks, leading into their end of year returns. there is no intention of concealing anything. the present position is that there is no evidence that capital will be required on the stress testing in november. the position is that when we recapitalize the banks -- the extra capital is giving buffers against bad debts. as the bad debt crystallizes, the bet -- the buffers are eaten into. we are still well above. -- the minimum requirements. >> is that something you could

see on a significant scale and would you anticipate selling the continuing 40% stake in that institution? >> no, i think they are separate issues. we will not fire sale anything at any of the banks. a fair value price at some time in the future, we will take it and we will use the proceeds to reduce our national debt. that is our policy. irelandthink bank of will require extra capital, but if they do, they are strong enough to get it on the market. >> very quickly, allied irish bank -- the future? >> allied irish banks -- what is your precise question? >> some of the sale may go through allied irish banks? 99% of the shares of allied irish banks. it is a question of value.

it is worth something between 5 billion and 7 billion. when it moves into profitability, the share values go up and we will take our time and see. >> thank you so much. ♪

welcome back to "the pulse." these are the bloomberg top headlines. >> the port of hamburg has been closed as german and danish residents cope with the powerful storm. earlier, london also closed the gates to the river thames. two people died in the u.k. and more than 100,000 are without power. japan's prime minister has called for a summit with china.

-- tensionsease 10 with china. tokyolationship between and beijing can never be severed, he says. mourning the death of nelson mandela. 95.ied yesterday at >> let's take a closer look at the legacy and life of nelson mandela. freeman taking his first steps into a new south africa. >> from prisoner to president, his 1990 release from jail signaled the end of apartheid. he would go on to become the country's first, truly democraticly elected leader. i do hereby promise to be

faithful to the republic of south africa. a small village, mandela was one of 13 children and the first to attend school. opposing40's, he began the laws that segregated society and made colored south africans second class citizens. he was expired -- inspired by gandhi's approach of nonviolence. he became more aggressive. armed wing of the the african national congress, he led violent sabotage attacks, was arrested, and tried -- he would spend 27 years in jail. but he was never forgotten. eventually international and internal pressure led president fw de klerk to dismantle

apartheid and let nelson mandela walk free. nelson mandela reached out to his former oppressors to try to heal a divided nation. clerk -- deand the klerk shared the nobel priest price -- peace prize. in 1994, he voted for the first time, with millions of his fellow black south africans. , anecame a statesman international icon. he countryymbol of tjhe south africa wanted to be. >> free of any hatred. of revenge orea recrimination. --many will remember this

mandela celebrating at the world cup. >> a simple tribute from a child. >> for more, let's go to johannesburg. seeing? you what is the mood like? >> there is a mood of sadness and hope on the other side -- that we can live his legacy. he had a massive impact on south africa and on the world. if we can try to live out the legacy and the dream he created for our society, it gives people

hope. there was sadness and hope and a lot of celebration. well thehat he was not last few years. on the years were taken away from him. were taken away from them. he made a massive contribution to transforming south african society. at where we have come in the last 20 years, he made a massive impact and he demonstrated to the world that you can have a peaceful transition. you can have a society transform itself. >> what challenges does he leave south africa with? he transformed the nation, as you say, but the process is far from finished. >> i think it does take a

society a long time to address bills of the past -- ills of the past. but we have come a very long way. we also have a very long way to go. it is a tale of two cities. there was a well-developed side of our society and there is another side of our society, which meets to benefit from the transition and the transformation which is lagging behind. we need to accelerate the development of that other side of our society. that is what the national development plan is supposed to achieve. the implementation and execution of the plan will be vital for the next phase of our transformation. concerned that he was a symbol and the proof that unresolved disputes could be resolved and he was there as a reminder to south africa and the world of that.

as we lose them, is there a danger that this will be forgotten with him? he leaves a very strong legacy. i think we can always fall on the legacy that is left. haveay what would madiba wanted? use that as a guiding light for south africans to take us to the next level. while one understands that he will no longer be there, he is still a symbol of light for us. he does leave a of legacy that we can draw on to take us forward. much indeed very for your thoughts. >> in 20 minutes, it is "surveillance." not all about jobs data, but yes we will look at

the american labor economy. that relationship of jobs into what fed policy will be in 2014. we have been looking at the passing of nelson mandela. we are honored to bring you richard haas. the night.s over some smart essays on what nelson mandela meant to south africa and to america. --ery special conversation maxine waters will join us. anddebate over apartheid divestment within the united states. clearly we will be focusing on the passing of nelson mandela throughout the morning. give us a sense of the coverage you have for the jobs report. >> we will be talking to

michelle meyer of bank of linkingmerrill lynch, housing and construction jobs into the labor economy. the basic idea of the labor -- they have to come back to 2014 after the holiday and that important congressional election. days a job stay -- jobs before chairman yellen takes over. >> thank you so much. the u.k. prime minister pledges millions of pounds to help startups grow. ♪

>> welcome back. the british prime minister has been in tech city today. millions of pounds have been heading into startups, helping them grow over the past few years. the number of digital companies in london has almost doubled in 2009. his tech city a hub or a hype? your third anniversary. give me the numbers. >> the good news is that tech in

digital companies are powering the luncheon economy. we used a third-party company -- london the economy. we used a third-party company. over 600,000 people are employed in this sector. oneconomy once reliant financial services for growth now has another robust sector in tech in digital. -- and digital. >> could those numbers be more? >> the government has an open door policy. one of the things we have done, is that we have a talent fisa. -- visa. we launched the future 50 this morning -- the 50 companies that are the highest growth, high potential is this -- businesses.

the programs supporting that -- we have taken a number of companies to india and china. the access they are getting to government and government services is extraordinary. >> you have announced the second portion of the future 50. you walked us through the first part of that. there is a sense that tech means software and programming. give us a flavor. there was a lot of consumer internet services companies. e-commerce. fashion, finance. heritage and financial services. also, companies -- gene sequencing companies. there are a lot of fantastic companies and sectors represented in the future 50. about science --

are we going to come back the linkages that exist between university science technology -- are we making enough of those links? are we doing enough? today we made some very exciting announcements. college -- they have imperial west and they have 41 startups over to the westfield .on -- complex in west london we're working with universities to tap into the innovation that is inside their knowledge base and inspire those guys and give them what they need. ups --upporting scale like what we have done with the future 50 and removing all the barriers for those companies that would prohibit or inhibit

them from reaching our public markets in the u.k. >> the story is a fascinating one. but we are still in the foothills. signifies this report that the london economy has made a change. instead of just relying on financial services, we have another robust sector. 50 companies are proof of that -- the future 50. we will see these companies grow and evolve and this they make their home in the u.k. and potentially list year, the growth in him jobs will follow. when you first announced the future 50, you talked about the idea of separate markets. tot would allow them circumnavigate some of the rules and make it easier for them to list. when does that happen? >> we launched the high-growth segment. a lot of companies are choosing aim because a lot of the

regulations have changed. they can free float it with 10% of equity. that makes it more attractive for entrepreneurs and growing businesses to list in london. a digitalunched services index -- we will be trekking companies that record at least half of the revenues in digital services separately through this index on the ftse. nexte preparing for this wave of tech in the u.k. >> thank you so much. join a shields, ceo of tech city. -- joanna shields, ceo of tech city. >> the u.s. is on track for the best year since 2005. has the recovery taken hold? we asked a senior economist. ♪

>> welcome back. it is the first friday of the month. it is jobs day in the united states. it is set to deliver strong numbers. michael, let's start with you. what are we looking at for a strong number?

that may indicate that the fed starts tapering sooner or they may just change the threshold. >> what is interesting is that we are not only looking at a strong number in the consensus -- 185,000 jobs created -- but the whisper number is well over 200,000. we may get an upside surprise today and the markets are positioned that way. if the number comes in strong, then the fed comes into play with the december taper in 10 days. if we get something over 200,000, watch the bond market moved in anticipation. >> what are you expecting? we are looking at a 140,000 increase. we expect that the economy might have stalled. thes inconsistent that economy would be putting on so many jobs.

markets pay far too much attention. wasaugust apparel number 160,000 increase. tapering expectations diminish after that. it has been revised to 240,000. the market is wrong to be putting so much attention on this number. they're wrong to between -- be taperingquity on expectations. >> even your estimate was not correct. we think the fed will not look at that very much because they get revised upwards or downwards? >> that is right. we pay too much attention to the numbers. even as they stand at the moment, they show in the first half of the past year there was decent jobs growth that lost momentum in the middle of the year. it is only just picking up somewhat from that lost momentum.

indicator.wed so many revisions it to come. the broader issue is that the economy still has a lot of headwinds confronting it. way below the growth rate that is likely to prompt tapering. >> do you think that the fed has managed to solve its communications problem? or are we still facing the issue of strong numbers and markets gyrating? are we still paying too much tension to the idea of tapering? >> it is is almost as if bernanke wanted to sow the seeds of tapering into everyone's minds -- particularly republicans in congress -- so that they would not be reluctant to have janet yellen take on the role of fed chairman. i think there would be more opposition to her if he had not started this whole tapering talk. if yellen is one of the architects of the current program -- i think it might have

been more difficult for her to get the job if the market did not have this idea that tapering was pretty much a done deal. it was easy to pull one over on congress. he seems to have pulled one over on the markets to -- it is just a theory. >> when are you expect me to happen? maybethink end of 2014, 2015. if there was a lot of bad news still to come for the u.s. economy. >> also because of the political situation? politics is front and center again in january. >> the soundings of the deal might be a little less aggressive going forward. we still have a lot of the previous sequester impacts to come through and the great inclination -- the gdp numbers yesterday. they are revised up, but it is all because of inventories.

growth was due to restocking. consumer spending was lower, business investment is waiting. the fed is going to be worried about these things. >> if we have a strong number ,oday and the markets do react are we set up for a real problem when the fed meets if they don't follow through? >> again, it will be up to the communication, which is not been the best. is that theyroblem have been yap yap yapping away, pushing their own views, when those who use of been based more on the idea that the risks associated with the quantitative easing program might be building rather than the genuine belief that the economy really was going to start to grow at a sustainable pace. they seem to always have that view a year prior that the

economy does not just deliver on us. >> thank you so much guys -- much, guys. >> payrolls today. >> that is it for "the pulse. " is coming upce next. they will be focusing on the payroll number. we will have coverage on bloomberg television. be thekey focus will remembering of nelson mandela who passed overnight and we will continue with that. ♪

>> he defeated the apartheid state. nelson mandela is dead at 95. a worldwide remembrance of protest and freedom. there is none american boom.

it is not in wages, it is in profits. and things that ebay had changed. good morning. it is "bloomberg surveillance." we're live. i am tom keene. it is a busy day. nelson mandela is front and center. data.ot of economic today is job stay. the moment is 8:30 a.m.. theine: 55, we get university of michigan confidence. also, we have american eagle outfitters out before the bell. alan greenspan will speak. he called it a bubble. bitcoin made aon splash. >> and the dfo