$12 billion pending to boost brands. mind.u.s. buyers in >> tech titans team up. others urge e and the u.s. government to stop data spying. >> an exclusive interview with t prime minister of japan. >> good morning to all of you in to thosed good evening in asia and those waking up in the united states.

>> this is "pulse" from european headquarters in london. fiat is saudi to be planning a 9 a lion investment to have turnaround strategy. italians are making a surge into north america. we have the details now. it is about the americans. it is always about the americans. about europe, too. you look at the car market here, to be absolutely brutal for a turn these guys, to leveragee losses let's what you have been successful at and being the premium end of the market. orget the fee at pinto and go to the 500. wantss the one every lady

a piece. >> and men. want to gender it but i did. $350,000. that is the car i would like. every man would like. but the money is going there and alfa romeo. and sell them where the 25% in ment rate is not europe but u.s. and the key point is they have the center in the shape of chrysler and logistics and car through the those routes. there is the italian that has wants to vision who take the stylish designs and up market and sexual it in the states because of the chrysler.on through >> there was a recovery in the united states and the eurozone

compare. number two, made in italy. italy is moan for luxury and sell it where people can afford cars are going to be built in italy. pressure on them to stay there. question mark as to whether they would. that is where the margins are fiat. >> it is interesting because it is taking the "made and frenchnd italian luxury and you see it from handbags to cars. problem that they have had s they have not had the money to invest. now he has chrysler's cash flow. stories of v.w. baghdad the tkpwrpbdz. into the loss t makers. f they focus on the fee at 500 that is a big step forward. you focus on the ones that you

can be successful. this is promising for fiat but this is something that will the next five to 10 years. my family has always had a lian cars and never had problem but it has to be krbl and not going to the garage every three months want but they look so pretty. >> i agree. i don't care if the maserati has to go to the garage i just admire it. .> you heard it here first >> let's move on and talk technology. a number of technology giants have called on president gong to have greater restrictions on government security. looking the companies for? >> what they want the government o do is curtail their electronic surveillance programs. it is eight of the biggest tech

written an o have open letter to president obama and the congress. today.s in papers effectively they appear to be more specific in what they want. one thing they want is there to the authority o of the government to access online. e-mail and data we heard effectively that kind c.e.o. of t from the google saying we have been doing in terms of encryption and -- of data but we have learned the government is taking the data servers. so that undermines our effort. that is the first thing is see put on the government's ability and authority to access information in the world. >> but what we are talking about only way the n.s.a. is collecting data. page fectively what larry

is talking about is the n.s. afpa. muscular that the world learned about in october here they gained access and kind of joked about it leaked by andden to the goggle server yahoo servers sort of pointing where the server systems meet the public internet. ironic part is there was a program already we knew called rism and have known about for some time thanks to snowden already hadvernment front-door access to the likes yahoo and facebook and could request those companies, could ask them to give them specific information about user specific files and the blessing of the courts. in addition to wanting them, companies, wanting the government to curtail wholesale

of data, when the government comes to them through the front door and says give us the court's blessing they would like to to lose more information consumers about that. they are very limited when the government says give us the data. give it or don't give it but whether they do or not they then say something. but they can't say a lot. so they would like to say a lot more. >> thank you very much indeed. latest on the tech spying scandal. banking.e from tech to hsbc could be gearing up for a major sale. it may sell part of the u.k. in a bank operations public offering. we have that report. we have regulations coming in part that is to

protect the retail operation. could be a logical step if you have been called to separate our so-called casino or investment banking from retail banking. the logical step might be off and start selling shares with capital from shareholders. we are getting evaluations up to to 20 billion pounds for the retail and commercial unit of hsbc just in the united king come. they would probably sell about 30% stake or 6 billion pounds they have beennd out to investors and whether they would like to see this and board level.at the it is all about the level of king tion in the united come because it is more than other european areas. must be that the bigger bank moves to hong kong not what the article

says. they kept saying it is too fierce the regulation. you are going to set us at a disadvantage compared to but you are broad making us hold so much more disadvantage.t a he said i might move to hong kong. who have the be agenda. they say they are not going to move the harbgs but in line with recommendations to separate onsumer bank iing with the spinoff and the concern could be first.gest bank is going will there be room for others. coming up..o.'s lloyd could be sold. be doing so. >> thank you, caroline. on he u.s. is clamping down tax evasion.

urged to s are being participa participate. we have all the details. been talking about it. this could be the end of the ing -- bingeing. >> we are at the turning point they the americans believe $100 billion. u.b.s.. has gone after the department of justice saying you notice,ve given we want you on board and go for voluntary disclosures in terms names of people that you have helped evade taxes and swiss saying guys get on board with this program because don't you potentially face criminal investigation and fines. that s one way of jumping and staying in the u.s. and saying to the authorities look, numbers the names and and it definitely has had an

impact. in terms of u.s. assets overseen byswiss banks it has dropped 70% and the americans said yeah swiss bank account and the amount of money. >> this is the disclosure. saying i think you should comply now otherwise they say spying. 14 banks are already involved in criminal investigation and go to the after you sites so you have credit suisse, hsbc and they are past that moment. for that.ou continue the conversation on tax evasion and .s. crackdown on swiss banks later when wae speak with ben jones. is on our t else radar. an american airlines and u.s. join forces called

merican airlines group is poised to rise on confidence that it can avoid pitfalls that down other than mergers. it is said they could rise over 2015. is that police have been deployed to the have been re crowds gathering this morning. statue was torn down and demanded a new government. they want the pressure on the had has rejected closer ties with the european union. we have an exclusive interview of shinzo abe. abenomics.s no end to the cabinet will approve the related policies and we will a

of execution ng and minister will put forth the policies. we will stay on japan and ask our next guest about those tools. he joins us next and find out hat he calls the economic ugly tree yes. ♪

>> welcome back. you are watching "pulse" from

headquarters in london. we will run you through what is going on with the foreign story.ge above 103. we are up that is a year-to-date chart and rise we have seen t -- toward the back end of the year. a decent leg up and we have continued to move north. overnight and t rime minister abe has been calling a critical meeting with the chinese to resolve tensions disputed islands persistence east china sea. e spoke with bloomberg and discussed the two countries' relationship. other and we h should understand that. we should not let one issue control the entire relationship. of our understanding would lead to a mutually beneficial elationship based on a common

strategic interest. matt winkler. to brendon brown is head of research and nice to see you. economics. with the takeaway from the the g.d.p. number is we are not seek the hope ment that abe would to see. >> that is the key observation. business observation is not picking up. that is similar to what we have in the united states. policy doesn't convince business people to increase spending because we are aware of problem and that would be accompanied by market pull possible recession so business people decide in up onse to q.e. to pay dividends, do equity buy-backs

ut forth plunge in long-term investments. >> what does abe need to do? to do big thing abe has is structural reform and that is here the disappointment has been most. we have not seen structural reform as of yet. to push the that economy forward to drive up it isment opportunity and absent. the fourth ee quarter number better assuming an upsurge as a result of the taxation going into next year? >> the anticipation of sales ax increasing next spring is bringing some spending forward. you may see some corporate ahead of that. but the disappointment in japan is we are trying to increase at all. the radical opposition to the economics program would say we should be cutting spending taxes, not increasing taxes

increased spending. >> you pwroeu up obama. draw the line between what is hang with the u.s. sort of policy moving forward but in of fed and what will happen in japan. the level of linkage. ex-existential. abe economics depends on the economics and a q.e. policies. what has driven the stock market up and yen down is the huge amount of risk takers piling which is atest story abe economics and shorting the yen. sort of pullback in the global asset price to q.e. the ated yen will be shooting up and stock market would fall. with the chinese element, too, recently the tokyo big story in residential real

highe is money is going in beyond residential from taiwan. that shows you how much abe economics is dependent on the ubble type of atmosphere created by china or obama and end.comes to an >> how do the politics fit into this. abe has done hat the prime minister but the announcement about the is appeasement that he recognizes the economic china to the japanese economy and that is why this relationship. >> i think there is a wide spread recognition that prime could not do much given the overriding u.s. appeasement policy. rescue trying to anything within the overall context. > do you think he anticipated obama would take this lane? so ou would think so given

much of what u.s. policy has one recently has been one of appea appeasement. but similar to a lot of concern too much . about regulation or too much executive from the ng through obama administration we are getting that now in japan. there is quite backlash at present over the recent official went through at and feeling that maybe abe is going into some sort of overreach. >> give us a sense of what 2014 -- look like in the skwrez japanese economy. given the u.s. strong growth cycle we are getting at the should start off fairly well for japan and given bringing forward of sales ture ahead of the tax. into the second half it becomes more clouded not just because of the pullback after the sales tax

but my personal view there is a risk of global asset deflation in response to the inflation. > thanks for your time and analysis. >> up next unrest in christian the latest on the protests as hundreds of thousands take to the streets.

>> let's look at the protests in ukraine. fficials say buses loaded with interior minister troops are kiev. to protesters are angry that the sign a t is ready to stayed pact controlled by russia. angela merkel must be keeping a pretty close eye on this. this you look at the way is being covered by the german press there is a lot of interest. picture of the lenin statue that was pulled down then decapitated. i have read press reports saying is opening a criminal investigation into that. at -- merkel ing

is looking at this and the minister was in kiev and met with one of the klitschko.leaders he is famous because there is a former world heavyweight boxer. there is a lot of the opposition coalescing around his he's been invited to join the european people's meeting. so she is showing a lot of for klitschko. a very tense situation. >> we will to keep a close eye this because it has huge economic representercussions. we e have the megamerger have all been waiting for. american airlines and u.s. airways said to finally ink a this morning. we will focus on the immediate outcome of the consolidation. that is up next.

you can follow us on twitter. see you in a couple of minutes. ♪

>> welcome back to "pulse" live european berg's headquarters. here are our top headlines. budget negotiators are nearing an agreement hoping to reach it by friday. it would trim automatic spending cuts that could break three fiscal talks in washington. an agreement is only the first step. the votes in congress is the challenge. a thai government spokesman says new elections will be held by 2.bruary he prime minister dissolved

parliament yesterday. opposition lawmakers quit parliament to join the protests. buses ls in ukraine say loaded with interior ministry to kiev.e headed hundreds of thousands of protesters have been blocking demanding buildings the government step down. they are angry off reports the a sident is ready to sign trade pact controlled by russia. european at how markets are faring. the heart of europe and france and u.k. under pressure. rest of the markets faring a little better. tapering the timing on the right side and with coming through chinese data and german data today.on as far as the overall come rs. of the industry --

complexion of the groups you see under pressure. these two groups feature hard and heavy in the u.k. seeing some of the miners come a little lower. there are they key speakers at federal reserve today. give ite hawkish who will us more tone and whether it on the bloomberg survey we could see tapering arlier than originally estimated. eking out the smallest of gains detective, dow jones. today.y all speak >> let's stay on the other side atlantic. american airlines and u.s. airways merging to yet the largest carrier named american airlines group begins today as well. we have the details now.

this from a out corporate point of view and passenger point of view. this is the last of the big pieces delayed a little bit but story in the u.s. has been really gathering pace nd this is the icing on the cake. >> this is the really the last piece of the puzzle. buy airtran west and united and continental and delta and northwest. american was always the largest then they were overtaken as americaned. they have retaken the slot they are used to. this thing critical in cycle has been the management of capacity. part of that.is as i get on one of these new fly from -- i don't know -- new york to l.a., what it mean in terms of the seats around me empty. >> it is great for the airlines investors and if you are an economy it is not because the

eat next to you will probably be full. load factors are going up. hey are managing capacity very tightly and across the industry empty that means the seat won't be empty. >> does it mean they have more capability north to because er aircraft u.s. have been criticized for aircraft.d will they rejuvenate the fleet? right, they were slow to move and they have started to move now but they need to be to buy the strong planes they have ordered. that is definitely taking place now. can i ask a question about what is happening in europe? we look at part of that big o.e.m.'s, boeing air france, we have a union

briefing. walk us through that? >> that is largely driven by defensive space side, spending is down, u.s. down and down.e and they have decided the growth is in airbus and they need do you have the says side. that is what is being discussed. job cuts in the thousands. we don't know how many but it is essentially trying to put the a scale thatess on the budgets can support. how much are we talking about? i love to give me numbers about people cut. >> it is quit significant. ou have to keep in mind the eads is cutting jobs. lockheed martin has announced cuts and eads hasn't done that the defense side. it is harder in europe and it is

chance to do this. i think they will try to do it in one bite. > and we should hear announcements the next phenomena hours? >> latered it. very much.u boeing's plane that looks ike the 737 is a hill advanced mechanical tiilitary aircraft. the u.s. navy deployed several to the japan to increase presence around the disputed islands. deployment for the aircraft which has been in development for nearly a decade. is a look at the game the ing capabilities of p-8.

>> in 20 minutes it is "surveillance" with tom kean. the united news in states. we will talk with david stockman

arch critic of the federal reserve. on ernanke and particularly chairman yellin presuming she will take over the watch here in 2014. we will have to look at his inughts on the budget debate washington. david kirkpatrick will join us as well. him.ll talk to i don't know if you knew but att miller tried to acquire a bitcoin over the weekend. we will find out if he was successful. to david lk kirkpatrick. and now down 46% from friday. i haven't tried to buy one but i was reading an interesting them basically fraudulent activity or hacking increased threefold the last six months. >> i think i made clear on my skepticism as a medium of exchange for it.

there was an important article for bank of america and merrill that and we will advance discussion with matt miller. >> tom, thank you. that is in 20 minutes. uncle sam calls on swiss banks seeking help from to crack done es on american tax evaders. ♪

>> welcome back, you are atching "pulse" live hear from london on bloomberg tv and on the radio and streaming on bloomberg.com, et cetera. goldman sachs and deutschebank firms whose e hiring practices in china are being investigated by u.s. according to "new york times." it says jpmorgan recently give spreadsheets and e-mails dilling -- detailing the sons and daughters hiring. o" frozen" was first in the theatres this weekend. it raked in almost $32 million. number one from the hunger games sequel.

haier electronics has gone higher. >> turning to taxes and today we now is the deadline that swiss authorities have given banks to decide whether they will ooperate with u.s. regulators hunting american tax evaders. of ing us more is ben jones team that specializes in international corporate tax issues. great to have you on the program. a k to us about how this is turning point. it started a couple of years ago when we realized that swiss were to the point where people could put their money is a turning e point today. >> today and in the coming weeks months is a real turning point because over the last been a f years there's growing pressure from the u.s.

information about u.s. account holders and enerally for countries such as switzerland but specifically they have been talking to witzerland to engage more proactively with the international information that are growing in force in the tax world. the is is not only about u.s. but u.s. today because the is saying you should sign up or you risk big fines on you. a collective conscience of asking more and to reveal bank accounts. >> this is a global issue. very stronglyiven by the u.s. because they have clout to ic power and do so. but you will see not only in with theific agreement u.s. -- sorry, with switzerland tax so in the u.s.'s

compliance act program which is spread globally. here is pressure on nations to disclose information about u.s. account holders outside of the u.s. people, i guess the wealthier people, will still less taxes as pay possible but still remain in the legality. what is the most attractive proposition right now? > i think it is becoming increasingly difficult because rightly so but the u.s. has driven this program specifically switzerland penalties ystem of nd punishments for not complying. other countries have picked up on it. so u.k. germany, france and have taken up there disclosure regime and out all the

jurisdictions over which they have influence. some of the traditional locations or channel islands are being riders to join of more effective exchange. accounts. bank what about where someone can ake, for example, nonresidential. i know they are trigger to close loopholes but you don't pay on capital tax gain. nothing. which is why we're probably seeing a property bubble or hike in london. i think that the nomdom attractivehe u.k. is and whether you can rightfully the income of people in countries, et cetera. ut there is a recognition that the very beneficial position

u.k. have n the through that will change. you have seen in a statement last week, statements about tax addressing resident, ownership of esidential property and clamping done on that tax benefit. think that will just increasingly move in that direction. moral and g social, political shift in taxation. >> is there any other country? a lot clients that say i want to do everything i get less where do tax? > i think in is a combination between really cutting down on contrived taxsive voidance as compared to a growing move generally in the more developed countries of looking at tax systems and how can be more beneficial and easier to work with. so, you encourage people to pay

a reasonable amount of tax but them for take everything they have got. talking about the u.k., it is has esting because it evolved from quite an un a more ve tax system to attractive system now. so there is a recognize next tackle the egregious stuff but otherwise encourage people to take a bit of a tax hit but encourage them to undertake heir activities and sets up business and become resident in countries. and there are other countries the u.k. who are doing that and others who have a long way go. >> thank you for all of that. guy, from taxes to trade. >> thank you. trade.talk about it has been 18 years in the making. the world trade organization has unsraeuldz a global deal that o add a trillion dollars to

the world economy. takes thing is if it nearly two decades to negotiate the first dell you will have a ot of -- first dell you will have performance wonder if it is the appropriate forum to negotiate deals to begin with. did get one salvages the w.t.o. hedging een people their bets. we have regional trade pacts and trans-pacific partnership and transatlantic partnership. in e were some who were and -- bali and did this went to singapore to work on the trans-pacific partnership. hat shows you how those deals are becoming. you have 159 countries and they ave to agree on something not unlike the united nations, it is difficult. saturday one of the big blocks was cuba that was trying to get others to xpress their opposition to the u.s. embargo against cuba and they gave it up. they are getting out the way on that allowing it to go

forward. be an wouldn't exaggeration to say it has retty much saved the w.t.o.'s bacon. >> let's talk about this from a view.rs point of once there goes through talk about what it will be meaning for business. will it mean for goods on the high seas? be enacted by two-thirds of the parliaments of he signing countries and it rusts reds tape. -- reduces red tape. reduce, two ways it one reduce levies. that is difficult and one thing taking two decades to resolve. then there is the simpler issue of reducing red tape and on the same systems and that is what they have done. oecd says 10% to 15% of a cost is generated by reds tape. cheaper.will be

that is the result of the deal and it should be 10% cheaper. that is significant. one reason you had u.p.s. saying global huge in terms of economy you mentioned this could trillion to global economy. trade is smaller than the global economy something like a third. -- global whreblg economy is $65 trillion. step, an incremental increase by 2% or 3%. >> not insignificant. you talked about the key food security. >> yes if there is anything all about it is food security. it is a big part of every country's industry. that has been holding things up. iing block with he cubans was the u.s. and india, u.s. objecting to their

exports. of grain they give india a waiver that llows them to subsidize the grain production as long as sit doesn't ends up on global markets. is a way of pushing things down the road and papering over the differences to go on with talks. >> international diplomacy is all about that. we will take a break and they are cleared for takeoff. merge are of american airlines and u.s. air is set to be inked this morning. tell you what else we can watch the rest of the day. ♪

>> you are watching "pulse." later today you will get a speakers maybe hinting at the possibility of a aper and maybe a taper that is coming soon. we don't know. nevertheless, you have the arkets pricing in a little movement. we have dollar-yen up to 103 and latest data out of japan today. little lower in qe-3. of the but they are not investing. f they are not investing the economy would grow the rates that abe would like and that is dollar tka-yen.o a look at what you

need to know the rest of the trading day. the bank of england governor giving a speech. a speech was given around this time last year and quite an important speech. you talk about fed speakers. ark is essentially got to although not necessarily communicate basically whether the fed will do so you look at of england has been doing and it is a change in policy. research note saying there is a change in policy. that is what the fed has to try to do. it has to switch the focus from rate policy.ram to if we get a reduction in stimulus a lot of people think complemented by defining thresholds. carney has been pretty successful not ecessarily making the rates during period of time but to switch our attention from q.e. q.e. any more?t

it is all about rates. >> thank you very much. that is it for "pulse." >> "surveillance" is up next. you tomorrow.

>> the dawning awareness that the affordable care act is not affordable. the deductibles will kill you. the president administers a media blitz. over the weekend, bitcoin falls

back. it becomes a medium for losses. and sears plunges as eddie lands' end.ases is monday,e and it december 9. it is my birthday. what about that? i am 49 and holding. >> that is the only reason i came in today. why would i get out of bed if not for your birthday? oh my goodness. how can i even see straight? what happened over the weekend besides tom ringing in his birthday? japan is slower than expected. the prime minister's recovery effort