>> the u.s. budget deal passes its first hurdle. the government averts another shutdown. puegeot,roblems for gm plans to sell its stake in the carmaker. maker looks tot make a new waves in luxury luxury. >> we like to be perceived as the ferrari of the sea. hello and welcome to "countdown. >> bloomberg reporters are

standing by across the world ready to deliver the stories that will start your day. gm is selling its stake in peugeot. /trade from currency hong kong. >> we have a plan to slim down. we have more on the biggest aerospace defense company and the social democratic party votes on whether to join chancellor merkel plus coalition government. why the last major jeweler is looking east. european business correspondent caroline hyde has the details. >> we have some more coming up on bloomberg. plenty to discuss. >> last night, 29 countries

watched a live screening of the royal ballet, "the nutcracker." >> the new u.s. budget has passed its first title. it puts up up popular spending. the two-year budget agreement would impact some of the automatic spending cuts known as sequester. the votes have not been locked down.

any kind of bipartisan agreement is certainly notable. when you dig deeper, the deal becomes less surprising because you look at it and it is a small board. tax reform to close tax loopholes. it certainly deals with increasing aviation security and other types of fees. thise entitlement side, is the biggest contributor to the deficit. it is 100% silent on entitlement programs. 10 agreesash will that it is a washington tax code. >> this makes it somewhat less surprising. selling a seven percent stake in peugeot. loss to cut of the

costs. this came off of the news from peugeot. ryan chilcote has the details. buym will continue to products together. they will not save as much money. it will take them two years longer to get to that savings. that is according to pew show yesterday. you can probably get a scaled- back partnership from what they were talking about. the logic, both companies have been questioning. they are losing money in europe. they are competing in some products in europe. this iss gm's stake, about underpinning its partnerships. they were selling their stake. that was for capital support. >> they are in talks with the

chinese manufacturers and about getting involved. there has been a busy week for gm and pew show. an extrakerson has had ordinary week in terms of big announcements including his own departure. they also said they are selling the financial under billion dollars. in europe, they will ditch chevrolet. that will go in a couple of years time. they will focus on opel and .auxhall they have been doing this since 99. the guy in charge of stemming those losses, he was a top candidate for ackerson's job. >> he is going back to the board. brilliant it was a

idea. interesting to see this week. >> the strong exchange rate in has driven out a number of big firms from the country and is prompting the central bank to continue to talk down the currency. to verbal are turning intervention. quite frankly, they have brought down interest rates to record lows where it has been really for the past two or four months. they have got -- they have not gotten the exchange rate to what they would think is ideal. there is this rise in housing prices. the market has responded. equal trillion dollar is to $.89. us trillion dollar is close to $.89.

it is actually quite fitting that the original architects of the float of that a big adjustment in the exchange rate has needed to make australia competitive again. >> let's talk about the japanese currency because the yen just hit the five year low against the dollar. thatbelieve it is that level right now. it is at 803.80. some people would say that it is a bit overextended given the fact that was we approach the none ofar anniversary, those reforms have been fulfilled. we will watch this closely. >> thank you very much. >> it has been a busy week for the biggest aerospace company. lost a deal to boeing.

they have a job to keep it simple. >> european aeronautics defense company. will no longere have to say the name. airbus.ust been called traditionally when these rebranding's happened, a lot of people are not really interested. sort of makes sense. simplify the name, simplify the business and refocus the name of the company to a name that we all know, airbus. >> the most successful part of the company. >> this is a sign of the times. you see these governments, they're cutting down. you reduce your exposure to that side of the business. some jobs.edding >> some of the goals are on curbing spending and development. airbus,as the ceo of

the commercial air division and he knows this business very very well. what they want to do is get more bang for their bucks. stop putting all this money into a massive development effort and milk the existing products you have. what wasn example of done in that division. that is where the company is going. no new jets at this point. this shows you how competitive the industry is. >> our guest said yesterday that boeing is probably headed that whole game. >> thank you very much. we are going inside of a yacht maker. look back at their

history. >> for the racing craft piloted by riva. of therd on the shores lake have produced some of the most iconic boats ever built. riva camed in 1852, to symbolize the glamour of the post-world war ii era. sellers,ardo, peter were all captivated by the boats. these sleek lines certainly sold. and the jetglamour set fan base, it has been a bumpy ride from a business perspective. riva a series of owners, was spot in the year 2000 before the entire company moved into international waters being bothered by a chinese group in 2012.

-- being bought by a chinese 2012.in >> the social democratic party voted on whether to join chancellor merkel's new coalition. kick it off with you, david. >> well, i will show you a picture. this is the interior of the building where 400 helpers will be counting the votes of the opposition to see how they're going to join the coalition. the word is is that it is going to go towards a coalition. this is another major triumph for angela merkel. >> well, italian luxury companies are being snapped up by the big conglomerate.

you have acquisitions of their own. it is making a big push to expand into asia. >> thank you very much. a key indicator might support of take -- support an uptick in u.s. economy.

>> time for today's company news. qualcomm cio is the short list to replace steve ballmer at the helm of microsoft. they will work to decide on this as early as this year. steve ballmer said he plans to retire within a year. mercedes told it's u.s. dealers that they should expect fewer cma's in the first part of next year. model helped to widen the u.s. lead over bmw. the report says german lenders

pulled a credit line after sac was accused of insider trading. the firm is examining its type with wall street banks. >> welcome back. and next guest says the fed will not take the next week. philip schor says the housing market is concerning. just a few hours ago. the house passed the first bipartisan federal budget in four years. it is significant in these lines because they have not tackled entitlements, they have not titled corporate taxes. 17 debt burden remains at trillion. >> absolutely, yes. not that much has been achieved in terms of the longer-term fiscal fix in the u.s..

not been touched at all. the tax code has not been simple five. what happened in october, two years ago. actually being unambitious was not a bad thing. the main point is that we have something in the short term that prevents a government shutdown. we actually have a budget for two years. let's build from there. >> this is still on the horizon, isn't it. within this agreement is an agreement to raise the debt ceiling. >> theoretically, that is the case. the more difficult thing was fixing the budget. the debt ceiling issue is something that can be left until january. elections arenal in november next year. the republicans want to have a major showdown over the debt ceiling. i suspect that that will not be too much of an issue. >> they were issues for the fed

in september and that is where ben bernanke and his team did not go ahead with cutting back on quantitative easing. if you have made progress, if the u.s. government and the house have made progress in averting shutdown, does that make tapering more likely? >> it does make it more likely. we can have a very close score next week. of the fiscal issues have been sorted out. if you look at the recent jobs report, we have not only had to better jobs numbers in a row, we have had an upward trend in job creation over the next few months which is positive. the question is how concerned is the said about the mixed signals in the housing markets? we have pending home sales at a 10 month low. new home sales jump but the prices have been week.

we have had a trend client. the fed would like to ask this time around or do they want to see a few more months of housing data just to make sure? of the conversation is now in the price. i'm referring to equity, bonds. how much is this ready. oldman has an interesting comment in the dollar. -- goldman has an interesting view on the dollar, they see it weakening in 2014. this has been since may. price. partly in the how much of this is embedded in financial market crisis? is this goes back through last friday, had consensus, the payroll number.

they rallied one percent up on the day and i'm very little news beginning this week week what happens to markets. markets are quite cyclical under this is -- fickle on this issue and it is difficult to judge how they will react to any specific policy reaction. >> this will be to tell the markets that we might taper. if we do, we will keep rates low. is now the time to keep them well and we will change the threshold? am i going to do this, am i going to do that? >> well, if the fed tapers, there has been some talks that what the fed could do is bring down the technical rate which is the interest on excess reserves which is the huge liquidity. this is about two point $5 trillion. at the moment, that is at 25 basis points. that could be cut.

the rates are not going up. i'm not personally come to the contents what this would achieve but it is one way that markets might actually say, well, we have had the tapering, there is some easing on the other side. >> thank you. we will get his thoughts on the uk and european economy we come back.

>> we are back with philip schor. let's talk about the uk economy. are you cross that the key indicators are coming in a week before christmas? >> i hope that the research did not convey that. that is where we are going. this is about setting the stage a 2014. >> retail sales, unemployment, where is the focus for you? >> a lot of potential for employment. to seed not be surprised unemployment to 7.5%, half percentage points away.

that could be interesting. this is inflation coming down sharp. food price and inflation and the what is happening in your tiddly prices will bring that down to 2%. gas andrising electricity prices which is the case but it should not happen this time around because the timing of the collection, there is an increase this time last year. that puts down the pressure on the number. >> we did a survey of bloomberg. two thirds said property in the uk is at risk of overheating. is it at risk of overheating? >> there is always a risk.

how much of it? people that live in london realize that the property market foreally too strong comfort. that is a regional shift. if you look at the uk as a whole, we would argue that we the not got overheating in property market. if we look at the metrics, house prices are around eight percent around their peak. the amount of activity is somewhere around 20% the long- term average. never mind the peak is below the average. yes, we have seen this activity. this is not too much of a problem. we are seeing an increase in supply. bysing starts have increased 20%. >> one of the last independent luxury jewelers considers sephia lorenz and evan longoria part

of the family.

>> these are the bloomberg top headlines. the u.s. house has passed the word bipartisan budget in four years. this removes automatic spending cuts. this includes cuts to the military. the senate will now vote on the bill. president obama says he will sign the final measure. about two thirds of the economists in the new bloomberg survey pick property in the uk as at risk and overheating. housing increases increased .6% to a new record. the bank of england government is attempting a measure to cool down the market which he says could reach warps need.

fifa could limit stakes in players. investors own a billion euros stake in european-based talent and cash strapped clubs depend to operate top level teams like the england premier league. hello, welcome to "countdown." i am mark barton. >> we will take you on board of the luxury yacht maker riva. we spoke to them about the potential growth market. sees theny still american market as number one. thet is a new wave of

pocket investors that are ,ooking for a gain in europe excellent quality, excellent brand. they see very useful potential in the company. they see incredible opportunity. that is one of the main guidelines. we will refocus us on the u.s.. >> that is where we see the future. do you share that? >> the u.s. has been the most important market for us and it is the most important market and we have been present there since i would say since the mid- 50's. we had a show room at the rockefeller told -- at the

rockefeller center. we also have in palm beach, south beach, in the hamptons. this is part of the american story and the american market. we see asia more as an opportunity for the long-term. the german opposition has finished its vote. all that is left of the count. >> we think that it will pass. it will be accounting that will take place. there is a picture on the front page. yesterdays picture of the interior of the building that will be sealed off tomorrow.

count the votes from 475,000. we are voting on the coalition taxes. you can see they actually agreed on a whole number of areas. minimum wage that will be introduced all across germany. there is a decrease in the retirement age. this will be a road tax. thingsad some of the that have been conceded by angela markel's party. we could be facing more elections if it goes through. angela merkel announcing a new cabinet. >> it looks like angela merkel had to concede quite a lot of ground to get to them on board.

how is she being viewed after this. >> this is a big document. , some people are saying it could be another triumph for her because if they put into place what the concessions involve like the minimum wage, angela merkel has a talent for actually taking credit for proposals that come from the opposition. does that, she can increase popularity even more. >> thanks, david. >> a family business for the rich and famous. this is one of the last family owned luxury jewelers. now it is looking to expand. >> this is in the third

generation. this is designing and crafting jewelry for the rich and famous. the ceo sees himself as an ambassador for italian style. has deep concerns about the traditional european market. >> in italy, the rich people are old. so, they have already made these kinds of investments. isinstead, the jeweler turning to central and east asia. polity and italian heritage is an asset that people will pay extra for. >> they have a high-quality item. ,> they are investing heavily planning on opening 40-50 stores in the next 4-5 years. than is more at stake

money. >> we have loved will be due and thinking to sell the company and being the only manager or going to do something else. >> we are joined now by our european editor. a finesse and 80 picture of the italian economy. rich people are old, therefore he looks to asia. >> that's correct. this company is pretty fascinating because it is only three generations old. it is a grand fund. it, hisutive that runs own father died in a car accident. he took over at just the age of 26. it actually has the whole lineup. in control of that whole process, interestingly it is very much made in italy.

it is a real hub of goldsmith. >> they are trying to stick to production. other italian companies are tapping into that, made in italy. >> that is an asset abroad, particularly in china. now, they have some 50 stories. .hey will open some 40-50 10 shots per year. this was interesting. some of them are going more towards the youth. that really gets the celebrity going. italy starting to climb.

>> international growth up by 32%. clearly very much focused east. they are listed since 2007. >> this is at the top of the hour. we will be speaking to the ceo a little bit later. is this a company building on the recent success? ,> actually, it is a laggard relatively speaking. this builds upper homes for proper families all around the country. it did not go down the zeitgeist which is to create a sub brand. the top in terms of

end of the market. they did not ride the luxury boom. they said, we speak to it, it should be interesting to see how much he emphasizes. that is a misinterpretation of what is going on. you will buy that beautiful policy, implemented by the uk, which allows people to get five percent more. to that end, that will still be the numbers. you are expecting a nice boon on that. it all comes on a day when 2000 economist that we surveyed said that the uk is overheating. >> they jokingly brush that aside. >> there is always a risk. >> and interestingly phrased question. there at the prime level in

terms of growth. george osborne, the chancellor was here in parliament. that is very very clear. that is quite a tory mantra. >> the funding for lending scheme was diluted, it essentiall essentially ended the requirements for mortgage lenders. it took a big hit. >> if you learn -- run the charts from october, they are down. they have had a good year but nowhere near the stellar performance of the top tier bracket. >> up, we will be talking about football. have made it to the final 16. what are the chances of an

english club lifting the trophy?

>> welcome back to "countdown." of the english teams have a chance to win the champions league tournament?

.e are joined by then littleton we we will look at the chances of the four winning the champions league. it is when we look at the second chart. here are the top six. where are the british? >> they are there. these are the top six rated by the bee sports productions. you can see by her new nick despite -- munich ise bayern high. barcelona takes up a big chunk as well. nobody really wants to play for rheometer at. >> that was at the last minute. >> they did. you wonder that when it comes to spring, february, march, will they be fit again? -- hows prove how under

people perceive the english clubs. the top four, the best chance is chelsea. >> that is mainly because they topped their group. there were no english clubs in the last eight. chelsea and manchester united finished top of their groups. --chester city the munich beat munich. chelsea and manchester united will get a better draw. there's a a big drop between the top of the group and the bottom. get a lower ranked side from germany or greece. so, they should go through. they are very low when you compare them to barcelona. the projections are taking into account the problems with the new coaches committee the issues in the league.

chelsea doesn't have a striker. >> >> they can only do so much. >> chelsea is conceding a lot of chances and goals. we spoke about them in the past. >> the big game this weekend is tottenham versus liverpool. it gives them a chance to look at the man of the moment, suarez. it will look at steven gerrard the kc he is out for six weeks. for sixse he is out weeks. >> when he is missing, the verbal drops off. this graphic will show that actually when he is not there, they often do better. this takes into consideration the games played in the last four years. this season he has been playing deeper in me to field -- in midfield.

it used to be give gerrard the ball, he will do something. now, it is give suarez the ball, isn't it? >> exactly. liverpool is a one-man side. >> of suarez is injured, they are in trouble. you can see his record. >> you compare him to the best. thee stacks up better than best, cristiano rinaldo. 10 games.games in that is as much as all of the players in tottenham. if you take penalties out, it drops to below 14 cristiano rinaldo. the ratio is enormous. you worry that liverpool without suarez, they cannot sustain this. they are mainly second because they are dropping points. >> suarez missed the first five

games of the season. he wanted to leave, didn't he? >> i think that the report will keep him in january. i think he will probably go to rheometer it. -- go to real madrid. the draw will normally go to a player that has played in the world cup winning side. >> thanks, we will see you soon. >> thank you. :hen we come back, "the hobbit the desolation of smaug." we will judge the reception when we return.

>> welcome back to "countdown." let's have a look at the newspapers. i found it quite a distressing image. syrian refugees endured the worst storms in the decade. refugee standing next to his home that appears to be made out of cardboard and it is increasingly covered with snow. severe storms have hit serious

and lebanon, the worst in decades. half of the refugees are said to be children. aid agencies are trying to distribute blankets, heaters, and close, that many people left in the summer and they only have the close they left which which is completely inappropriate to cope with these temperatures. some harrowing pictures. >> on a lighter note, i am very excited for the latest lord of the rings film. smaug."olation of " critic.he "guardian he gave it four stars. , i get "the hobbit."

tolkien, it is about peter jackson and tolkien. >> are you going to go see it? lex i cannot go tonight but i will go by myself to watch it. >> you're still asking for the tickets. >> i'm going to call it not gate. we knew that the queen had a savory tooth. apparently, she likes to have bowls of bombay mix and cashews left around buckingham palace. is that for those of you that don't know what bombay mix is because i did not, it is . nasty concoction of peanuts the trouble came when she suspected that the police that regarding her were secretly eating the nuts and she allegedly proceeded to mark the balls to see if the levels dipped. i cannot independently verify anything in the story.

>> you are not there. >> i've never been invited to buckingham palace. >> we must get you some bombay mix. >> you always forget eating them. , >> and they do it again. jay-z and beyoncé. he calls himself not a man.essman but a business he sold the rights to sam's son. she had a album that no one knew about. there were rumors that she was going to do a fifth album. it comes early, it has more videos that it has tracks. 14 songs, 17 videos. its is her old music but shows how clever she is.

you have got to buy the cd, the album. so, we're going back to the age of an album. she does it again. even her own daughter features on it. epic.going to be have you ever describe anything as epic? >> no. ryan's eating is epic. of theill not talk about time that you to share lunch. a lunch. to share >> it was a speed trial, it really was. >> a race to the end. we digress. "countdown" continues in the next hour. we're going to take this further. we will be talking to one of the company's very much involved in this.

we will see this later on during programming. "countdown" continues. . .

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