>> merkel prepares her third term as german chancellor and femaleion gets its first defense minister. >> get ready to hit the slopes. sinceggest italian ipo 2010. we will speak to determine. >> mike ashley may be building up state in the german company. stake in the german company. welcome back. >> i am anna.

welcome to the program. reporters are around the world and waiting to deliver the stories that will drive your day. --lo merkel begins her third angela merkel begins her third term. we have the latest on luxury. more.n chilcote has hans nichols has the number behind the retailers. >> the chairman will join the ulse after stocks start trading. >> merkel is ready to be sworn in as chancellor. let's get over to david tweed. she comes out of this in a strong position. overwhelmingly

endorsing this coalition. more votes than expected. amount said that they will go into the coalition. out in a strong position and gets to keep, as finance minister, a minister who is not guaranteed to keep that role. it is the second most popular politician in germany. up chairman of the spd ends in a ministry. they will take the economy ministry and added to a portfolio. he will be responsible for the transition in germany from nuclear to renewable energies. merkel's key plank of

last term. she said that a priority of hers will be to bring down power prices. he did mention that we will have the first female defense minister. she used to be the labor ministry -- in the labor ministry. the interesting thing is that thatpress here are saying merkel'sing to be crown princess/ . will -- crown princess. will she be her successor? >> it leaves a spot at the ecb, doesn't it? >> it does. they're talking about the vice president of the bundesbank subbing in and taking that position. that will have to be decided on

the finance ministers. she is not an elected politician. it is going to be a key ministry. it is going to be responsible for the introduction of the minimum wage in germany. that was part of the agreement. some of the pensions have changed and it looks like she will build a base. will he run for parliament? that is another question out there. >> david tweed is our europe editor. >> we are following the biggest initial share sales since 2010. we have the correspondent, caroline hyde. times oversubscribed. investors andn professional investors sold more than three quarters of a billion euros.

out on the come higher end of the market. it is a phenomenal amount of demand. they are luxuriously priced ski wear. it costs $15,000 to get some of these. interestingly, montclair, the a tying company, -- the italian company is named after a french village. in excess of one billion. >> what is the plan to expand the brand? >> people have already gotten 100 directly owned stores globally. they are all going to be there.

it is going to the emerging and russia, asia, the americas. buy aairman is looking to niche brand. this is a company that is very reliant on sales and other clothing and accessories. they could diverse affiant themselves. sales were up last year. >> this comes on the back of a strong year for ipos in europe. this shows the sentiment with luxury clothing and it is $32 billion that has been raised. much as last year. >> this is a company that says --not to add now

decided not to and now says they will. >> the minister will meet with putin tomorrow to discuss the weekend. it marks the fourth weekend of protests and ryan chilcote has the details. what has been going on? >> 250 thousand people on the streets of the capital. you is different is that had competing demonstrations. you had people who support the government and are joining in a withrent part of the city people web them protesting against the government. the symbols are coming out. you have a pro-government and andrussia rally on one hand the pro-european and pro-eu demonstrations that are addressed by people who fit in

with symbolism. to thecain flew when united states -- from the united states. >> it is amazing to think that he would make that trap or that you would think it -- he has traveled a long way. is anry freedom fight event for john mccain because he loves these kind of things. he stood up there and said that the united states is with the ukraine and to be strong. .e is vehemently anti-russian this is a reconfiguration of >> this is between east and west. choices a bi-polar between the two. >> give us an idea of the political backdrop.

>> we have the president who reneged on the deal and is on his way to moscow. he is siding a trade agreement with the russians. russiansot be this union. trade and theize ukrainians started talking to the european unions. you also have the minister speaking with the eu policy we heard from the m marchman chief who said that the talks were on hold and that is supposed to be a signal to say they want to stop using them as political cover and they are not really looking to join

the european union. protesters are talking about it. there is no real movement. >> where the opposition in all this? >> these protests in the ukraine from the so-called orange , there is no unifying figure. the three individuals that we have who are leading the opposition and a talked about the heavyweight boxer, and the nationalist, they are able to to then their opposition current president and very little more than that. this is not going anywhere. sales are up 10%. we have this. >> good morning. sales were up 20% against

estimates of 14%. month forike a big h&m and this comes in the context of other retailers offering steep discounts. overall revenues and preliminary numbers. one thing that struck me was the there were 2100 stores with explosive -- x most of growth. it looks like that, in november, the consumer was in a spending mood. >> how high can it go? we will talk about the commercial director next.

>> first. bloomberg. news.e for the company we have had breaking news from the french retailer who is and it the consortium gives them more control of the sites around the markets. they will be looking to bring new members to the consortium.

deals said to be nearing a to sell its leasing units and they will get $3 billion and 96 million shares. early as announced as today. expand and they are the long-haul arm of a carrier. welcome back to countdown. i am anna edwards. >> i am mark barton. we have more properties on the market and the london market my cool next year on the property cap. housing analyst. it was not a big drop. >> the smallest since 2006.

ande is a case of demand momentum for next year. shows thate forecast it will be a robust year. >> indeed. there'll be a stronger rise next year of six percent-eight percent. that will push up something. you're talking about people putting up their houses for sale. >> absolutely. not build up momentum, that we have been talking about. there is only two percent more properties coming to market and you can see the list. >> why do you think that is? i than it takes a long time to get over a recession and the that -- the confidence will increase. people who 79% of thought that rices were going to go up and there is a confidence

and prices. they are expecting rises to go up and think it is a good time to trade. >> we have several hotspots in 2013 and they are doing better than the rest of the country. it looks like it will be the year of the northern hotspots. >> we are seeing the southeast as the main beneficiary and not really seeing a london ripple of fact. 5.7% and we think that that money is in the market and will be able to get good in the south. they say they can do good value properties in the southeast. they have to close some of the gap, as well. >> the governor of the bank of england announced the mortgage part of the lending and it will disappear.

have onact will that the housing market? >> i think that we will see a and we're assets investors.resident there is relatively cheap funding out there. >> on that non-residence tax, do you think that there are certain that areand properties more widespread than i expect. -- expect? taxhere's the capital gain and the minimal returns on the

rental properties. looking at capital growth and that they will have to pay capital gains task. -- tax. properties are required to be built and lots of those will be going to non--u.k. residence. -- non-u.k. residents. >> you speak up for the scheme in your report and say it delivers a more normal function to the mortgage markets. the second part has received a lot of criticism. >> it has. if you look at the mortgage indeed, more northern are hoping to recover the

market and helping northern part of the country. the scheme does not work. can it be a permanent feature? a scheme that was not intended as such. can you see it being a lasting feature? >> the goal is to get back to a normal market. they are doing it without a guaranteed scheme. than the, in less the rising, you have house prices. that may well be one of the things that will help longer- term mortgage markets.

it is not good as 2013.

>> welcome back. 7:23. time in london is we have the market analysts. the house price analysts --

estimates are here. >> not quite as good. still a nice gain. if you own one. 10.6% rise in london last year. a slowdown. in monetary terms, still a substantial gain. >> it is more demand than supply. >> it is. 50,000 andis around a projected population growth. obviously stretched, with affordability. people are finding ways to raise the money. thatere is a statistic creates a more complicated story, i imagine. >> absolutely. very specific.

hotspots of supply and demand. there is a transport desirability and an undercurrent of, where is the next place. there is also a searching for value. that is in the central london areas. , you can afford it. --the disconnect and weepends on supply are seeing that in brackets. it has increased more supplies and development is doing speculative conversions and good quality conversions. increasede supply has without much demand. >> we talked a little bit about

the non-resident tax. can you talk about the areas of the market will have an impact question mark -- impact? how significant is this going to be? what proportion of the market do they represent? have developers holding open days and weekends. properties and, having said that, that had to look at returns. they have to look at the longer- gains taxand capital is not as punitive as income tax. they are looking for a safe haven. >> thank you very much. >> the time in london is 7:26. a billionaire in a jacket.

the chairman is a new billionaire and expenses vision.

>> in london, these are the headlines. merkel has her third term as german chancellor and presented a coalition to keep wolfgang as the finance minister. has made her become germany's first female defense minister. in ninkovich is going to talk nokovich is- ya

going to talk about it. the european bailout and crisis 2009.in there was no credit line safety net. access to the ecb bond buying program had the prime minister talking about eliminating bond buying crisis and the gdp ratio. >> hello and welcome back to countdown. >> i am anna edwards. chairman became a billionaire at the top of the range. top of the range and a net worth of $1 billion. for more, we're joined by ruth

david from bloomberg news. let us start with you and tell us a little bit about this man. mane has become a wealthy and an interesting man. he did not create the company, he is a management guide. the company had a history before she -- before he joined. he reinvented it. it went from being a stodgy jacket maker and a fashion item. it sells all over the world. >> this ipo is the biggest in three years in italy. for the european markets, we have had a lot of ipos. >> it is a great market to be in. we are up 50%. it is doubled in number of companies. that is because the debt crisis is no longer such an issue and is coming back. investors have been pouring money into the markets and if

you are a buyer or a seller, this is a great offer. the ipo is an excellent example. >> they doubled since they went public and he thought it was an opportune time. been waiting for this exact moment. montclair and private equity has had some big sellers this year. what strike is that? and 2008, investors were slightly more comfortable. that tryore companies

and you'll see a lot more private equity next year. -- >> this is a significantly different market than 2011. >> yes, they had to cancel it. the investors are coming back into the market and there are bankers in asia that are saying that 2014 will be the year of ipos. >> what are the big names that could come out next year? >> you have the russian acrossrket chain and markets in europe, you will see companies. >> the business wants to expand and is the feature of ski resorts and towns. markets andng

russia. >> of course, china is a big one. it is a challenge and they will have a road ahead of them. there is great opportunity for growth. the growth potential is interesting. 1980s, they made the translation -- the transition. it is not as well-known known on the city streets. >> ok. thank you very much for joining us today. interviewmiss our that is coming up on the pulse. >> will have more on the are europeanhe 127 shopping . sit with

>> it is time for a look at "rim of the day. man versus metro. the fastest boost against an argentine metro. bolt one without breaking a sweat.

he hopes to add to his six "metals. books in the small town of midland, michigan. santa received instruction on sign language, reindeer care, and communications during the seminars. injured soldiers finished the walking with the wounded challenge. there is a track through the south pole and rough terrain. that it was aaid mission success. welcome back to countdown. anna, how is your reindeer care.

a lastingy think is sporting fixture. it barely looks like it was more than strolling. >> on the move starts at the top of the hour. the anchor joins us with a preview of what is on the show. >> i have to talk about reindeer and that is what i want to talk about. reindeer two live delivering a massive party and i was not sure where they fit in. >> no. >> there you go. >> i hope they were not drinking vodka. futures,ms of european there was a big day and week because we have manufacturing waitingd investors are on the federal reserve meeting that will start on our stage. futures are mixed and we can see them down 0.2%.

>> an interesting plan that will have an impact on the shares today. >> we are expecting it to. the manufacturer is buying hasnd $2.7 billion and massive supermarkets across france. they are trying to buy real control, get more perhaps? .> it makes them more exclusive >> we will see what happens with the shares. >> i spoke to the chief beingive and it is downplayed. i think it will go well. shares are expected to rise and we are expecting them to rise quite sharply. >> we will go through that with interest. of thee back at the top

hour. both of the could be corporate stories. we have caroline hyde here. >> it is. what 20% and that is analysts feel it is worth. that is a conservative estimate. the company is priced at the top end of the range and the shares and wellen to 10 euros could see them rise by 20%. overall, it is about three quarters of a billion euros and, speaking to the chairman, it is the entirety. the company owns a majority of it. they're going to have to diversify. they are looking to diverse affiant is slightly warmer outfits. outfits for warmer climates and they could be investing to buy a

need where company. itis phenomenal taste, isn't ? there sales rate has risen and have lobbiedthey and really rallied. clearly, they will replicate the success. it is interesting because what expansion andy another european newspaper on friday morning was that the shares were removed. the biggest retailer in france

is for 2 billion euros. a vote of confidence in europe. we are seeing investors that are more willing to put money into luxury retailers. looking to spin off the property and now, they are investing more heavily. this is where the sites are coming from. it will be held by other institutions. they would get rid of property assets and invest in saying that the strings is more attractive. there is a need to make a big market more of a destination. we saw that and we saw them has sales turn higher and upward.

>> thank you. >> the paris not a core show is slimming down. .he yacht business jonathan ferro has more. >> these are the votes of the 2013 paris nautical boat show. it is one of the biggest and oldest boat shows. this year, the exhibition occupies less space. not everything can get in smaller. towards greater maneuverability and it is becoming bigger and bigger. the clients are not looking for big cruise. what is an offer? is 15 meters long and cost more than $800,000. what is more is that the sailboat is 18 meters long and

the exercise comes at extra cost -- $1.8 million. tech is increasingly important. navigate use ipads to and we did see currents and weather reports in the next two hours. there are a lot of things that from competitive sailing. the demand for motor votes and yards is growing in asia and italy. organizers said that the shares may be taking up less space. the industry is still very buoyant. >> coming up, china and the manufacturing index that unexpectedly dropped overnight.

>> welcome back. >> i am mark barton. >> these are the numbers. they are in italy. michael is here. he is the markets to register. let's start with china. the pmi has a big week. the market expected further acceleration. >> that is three or four months ago. i do not think they feel that

china is going to be able to maintain that growth target. orders and they are looking at more positive ones. i would say that it is get halfe for china to of gdp. they are effectively trying to it ise on that level and a tough one. you will have credit events in china. >> are you a china fan? >> i would not go that far. i'm not sure what china really means anymore. i talked to the manager a month or so ago. he says that china will be fantastic. his words, not mine.

it has been very volatile. yes. i think that hard lining is in the cards. there is a rebalancing and most people are thinking. >> looks at a look at the people through the day. we have the pmi numbers and the italian and german economies. forward, isn't it? >> there'll be a slight improvement. there are a number of factors and auto demand .ickets

it has come back online and contributed to the numbers. motrin, as ever. looking at the previous pmi seven indices and new export orders. to thes upside risk german numbers and downside risks. >> the right move will be shipped side and less than normal. it is pretty good, isn't it? >> yes. >> they have expensive comments the housingout market being a microwave >> the bank of england. the chief economist. where are we? we're between cold and hot on a microwave. >> i'm not sure.

worried about putting tinfoil in the microwave. mentioned, it is a supply constrained market and there is a bit of a worry. you are quite right that there is a situation and they are agitating the measures of the post-carny. they are wondering what is going on and is more than usual. market -- property >> full disclosure. increase of transactions only saw a two percent increase it takes a long time for you to and from a session

corporate standpoint, it takes a that is one of the conclusions coming out. thing.s a global banks are saying that there is an interest rate environment and companies will invest to kick a whole sector of growth off. we are seeing consumers consume. we are not sure the future holds japan areorecast for up till this year.

there is no investments in the u.k. and prices in europe. even the u.s., it is the best of the bunch. many economic they do not want to see the creation of a credit bubble. consumers will start spending. there is a chicken and egg .ebate that rolls on they want to get consumer spending. click the chances of the fed tapering this week? is thinking 35%. i do not see it myself. not totally ready and we are heading toward the taper next year. out andlow ppi numbers

they have been agitating. ultimately, you do it in december. >> on the move is next. have a good day.

on the move.""the pulse. our markets team has everything covered from companies to currencies. joined by european business correspondent caroline hyde and markets editor manus cranny.

our european editor david tweed is also standing by. it's kick off things with you. germany now has a government. it now has a government. quite a strong government headed by angela merkel. the cabinet now has its first female defense minister. she's being crowned -- she's being called the crown princess of german defense. thisbe back to talk about and more details. >> we will have play more from the story throughout the program. carolyn, you are watchingmocler. for the amount of shares at this old, there were 27 times that amount of demand. 20 billion euros of orders coming from institutional

buyers. we're expecting that the share price could rise there it some are saying it is with 20% more. it'd price top of the range. extraordinaire demand for very expensive quilted jacket. it shorter demand for the shares as well. >> we will of course watch the share price as it opens. watching carrefour. >> it is a 2 billion euro deal. they're going to take a holding in this new vehicle. it is extracting value. the ceo is containment there back to basics strategy. again, it is focusing on that bigger end of the business. car for down some 0.2% --

is a 50-50own. >> chance that come december we will start to see winding down of stimulus, maybe tapering coming back on the agenda. just because of that data starting to improve, we're seeing more economists, certainly that third of them think they will get tapering come december. >> it is on the size of march is a great distance away. it is. have full months away. will not be at december taper because the trend rate, unemployment needs to be above 200,000 -- the employment rate needs to be above 2000. the trend rate needs to be pumping and above that 200,000 level on a consistent basis. to fed doesn't seem ready move forward with guidance. 32% as a minority. the view is, who the heck knows? stick a percentage on it, turn

it around. what do we know? >> it could win a losing a lot of money. we will have a decision on the 18th, that is wednesday. have some chinese manufacturing data also. >> that is at a three-month low. japan we had a report saying sentiments at the highest since 2007, but capital expenditures dropping. for thee were looking purchasing managers index on manufacturing all around europe. it is expected to grow. there's no doubt about it, when you run up to this fomc decision , the market is becoming widened, more sensitive, more thatus as we run towards european equity markets are lower. also seeing comments as well that you can expect a bubble to form in china. stocks are down, the yen is higher, it is a big week. we have the german sentiment index, the e phone numbers come

out this week. in the u.k. you have inflation data that mark carney will be focused on. willie hit towards that -- will he hit towards that two percent number. some companies that we mention at the start of the show carrefour virtually unchanged. up two point 49%. like rocket would appear it now has a near eight percent voting position in telecom italia. of course there's a great deal of machinations about what they would do in terms of resilient assets and telefonica is holding. blackrock had virtually and eight percent voting position. being paraded by the regulator in italy saying they did not disclose in a timely basis. there could be a problem. same-store sales are rising by 10%.

all done to spandex, but i will leave that to hans. we have three days to run. why would you position yourself with a very pro-risk trade when there is that aired eight percent modicum of possibility that the fed could begin to reduce their asset purchases e d want to run that risk? yen is rising, dollars falling. justussie dollar dollar below -- we were to hear from the rba. foreign exchange markets, expect currency swings and a 2.5 year high. get ready for volatility. volatility means brokerage and brokerage means bigger bonuses. , the opposition spd voted overwhelmingly to join it grand coalition with angela merkel's party. let's get over to our europe editor david tweed in berlin. david, merkel comes out of this in a strong position, but what

about the spd? ,> you're right about merkel because she got the overwhelming support of the spd rank-and-file in that referendum. she gets to keep wolfgang short- chauble. he is 71 years old and the second most popular politician in germany after merkel. gabrielle comes out very strong -- sigmar gabriel comes on very strong. responsible for the transition from nuclear power to clean energy. this is an absolute priority for the government of angela merkel and for the spd. also very interesting looking at the defense ministry. is the first

female in the defense ministry who is being called the crown princess of german politics. some say she is aiming to take over from angela merkel should merkel step down before the end of her term. >> very interesting, david. thank you so much for that. are you can editor david tweed on the latest. david, before let you go, there is a surprise with j joerg asmussen leaving the ecb board. names is sabine the question is what she might do if she is put forward and elected. but of course that is not guaranteed at this point, francine. >> certainly isn't. thank you, david tweed. we will have much more from him

throughout the day. here's a look at what else is coming up in "on the move." more on italy's biggest ipo since 2010. how the stock is faring on his first day of trading. ♪

>> i'm francine lacqua in

london, this is "on the move." streaming on your phone, your tablet and also bloomberg.com. tapering will be bad for bonds and certain stocks. for more on that, let's will he hasvor greetham. more than a hundred 60 billion pounds in assets under his stewardship. tapering may come as early as wednesday. >> it could be wednesday. we saw someone yesterday pretty 40% of ability on it to be precise. people are this is him was 50-50 between now and march. i don't think the market is going to be as effective as you might think. if you look at the bond market, the 10 year bond is selling off in the u.s., but the two-year bond hasn't. with that says to us is that the markets are beginning to differentiate between the fed buying fewer tenure bonds and

when fed funds start to rise. there's a belief that the fed will actually push that date even further out. the markets are quite calm about tapering this time around. >> because he now understand, trevor, that there's is a difference between fed tapering and interest rates rising. >> people say tapering is in tightening. letting up on the accelerator pedal when you're driving is not breaking. but markets and believe that in the summer. they link the two together. the markets are starting to believe it very plus nursing a firming of growth in the major economies and that does help stocks. >> trevor, it would seem surprising to taper before the new fed chair takes over. >> you can argue both ways. you can argue that bernanke doesn't want to leave the job of the tap running or you could argue that yellen wants to be the person to start with the new policy. >> you're pretty confident that we are not going to have any big swings. >> actually, we will have a big swing upwards again.

we're seeing strong growth in the u.s. with fiscal drag lifting with the budget deal. we're seeing strong growth in strong and wea are seeing inflation fall. the key thing is with commodity prices falling and major economies rising, it is back to the 90s which was a 10 year bull market is things are looking quite good. growthalk about strong in europe, we're practically flat. we probably have a deflation problem coming. stocks got so ahead of is it really 2013, going to rally as much a 2014? >> is a global story. we do think that global growth is picking up led by the u.s. which is escaping its debt trap. property prices are rising, the fed is very sensitive to property prices. we think they will keep fostering a recovery and strength in japan. we think that will carry on through the sales tax rise in april.

>> talk to me about some of the groups you like. interest rate sensitive what we like our u.s. equities, japanese equities, global industries. we also like consumer discretionary stocks which is a big u.s. consumer play and health care as a defensive eric >> trevor commissary sarah there. --e getting the appropria >> perhaps unsurprising given the amount of demand investors were desperate to get their hands on this stock. they sold about three quarters of a billion euros worth of the company overall.

there were 20 billion euros worth of demand from institutional investors alone. a lot more demand than there was supply. that is why they are able to sell at the top of the range. that is why we're seeing them up 43% this morning. the company now valued far in excess of two .5 billion euros. this makes a billionaire out of the chairman who holds just under one third of the company. all about wanting to invest in this company, expanded further. these jackets, francine, go for up to $3000. >> there are also plans to expand the brand. >> they have about a hundred directly operated shops currently around the world. they are looking to expand big in the emerging market. russia, asia and the americas. this is where the chairman wants to start taking the company, wants to open more stores there. sales are ramping up higher. sales up 35% back in 2012.

clearly wanting to expand the brand. chairman told us a couple of weeks ago they might be doing m&a. could they be diversifying further? symbolic showing that not only luxury, but they want to buy into european brands as well. initial share sales up more than double in europe this year. back to you. >> carolyn, thank you so much for that. 42% on the open on trading day for the sportswear, outerwear company. let's go back to trevor greet ham. one thing that is quite surprising, when markets go up, follow.dm&a

what will we see in 2014? >> corporate seven sitting on cash. there've not been investing in capital equipment or taking each other over. i think that is because of a trauma from the boom/bust. we went in through 2011/12. we are at the stage of the business cycle when equity prices tend to rise through multiple expansion. this is nothing like price- earnings ratios going up to get that activity going as well. i think we will see more of that herd >> what is one thing you're trying to stay away from in 2014? >> we are most nervous about leveraged interest rate sensitive areas. we're underrating commodities because we think there's a structural slowdown in china. >> we will be speaking to the -- talk toirman of

me about sentiment in europe. we have the ministries in germany, what indication does give us on where merkel will take germany? it will be much of a change. it is oh is funny that merkel almost got an outright majority, which is that close. six out of 14 ministers are from her coalition partner. that is what negotiations due to you. it is still really merkel government. a bit of a surprise is asmussen coming. we haven't gotten to the bottom of that one yet. there's a hole in the ecb for german to fit. the main thing about europe is that the crisis is currently in remission. i was use that word. it will come back if global growth slows down because there's unfinished business. -- we willspeaking

be back in two minutes.

>> all come back "on the move." to i'm francine lacqua here in london. we are joined over the phone paris.

thank you so much for joining us talk to "on the move." me about how your business has been going. this allows us to concentrate and focus on what we prefer, which is to say the original malls. 120 nine shopping centers, that is to say half of what we had. we are concentrating on our best and our preferred regions, paris, south of france and scandinavia. >> you think you got a good deal for this. >> we sold those assets for appraisal value in france and fory with limited discount spain. overall it is a good deal. >> we are focusing on real estate today. how is business going? prices seem to be going up overall in pockets of growth in europe.

>> definitely. longer a unified continent in the way that there are regions -- we have identified this in klepierre. we target the best regions we have demographic growth and wealth as opposed to other regions. affinitya strong between regions. own have a very strong reliable sustainable stream of revenue. it is normal that investors should look at those revenues with much appetite. thevindication of that is price we get for the assets we sell today. mr. morel. you talk to your customers. carrefour were

thatg these malls is because they were more real estate so that is not so much a franchise and they are in control of everything? >> i think there have been many questions. you should ask them the question. there is a very strong andgement atcarrefour they have ideas about how they're going to coordinate those properties with the market and the galleries attached to it. i think there is a clear new government in this company and it is probably a positive for them as well. >> what will real estate look like in 2014? what is your biggest concern overall? think these two have the right opportunities for growth. as you know, we have been successful in the recent past

in our recent developments. we're still fighting every day to find new opportunities of growth and this will always be as usual in real estate. the main challenge is to find the right location. this will still be the most important challenge for us. >> are you concerned about europe? you're talking about the fact political europe is not one europe. real estate markets are very different compared to the country where you are in. is there too much of a two speeds economy in europe or even three speeds and do you see that in real estate prices? >> when you look at america for areple, cities, some cities doing better than others and some are going bust. you have situations where some cities in europe have public

transportation, universities, growth and some are missing the point of the transformation. howc are you going to spend the money you're getting fromarrefour? are you going on the acquisitive trail? klepierre t is for to reach its strategic goal. it was our main target and we have achieved it could we are happy with that because it is going to dramatically improve the financial profile ofklepierre. and will allow it to get better access. willnk we believe that it be of the utmost importance to have a strong balance sheet in the current environment.

i hope you come to the studios here in london so that we can continue the conversation. klepierre. stay with us, we are "on the move." ♪

>> will come back to on the move. . in thecine lacqua meantime, these are bloomberg top headlines. angela merkel begins her third term as german chancellor this week with the overwhelming support of her spd coalition partner. the announcer cabinet choices yesterday. her veteran finance minister

keeps his post. and germany gets its first female defense minister. the chinese manufacturing gauge on speculation out a three-month low. 50.5 came below estimates. a number below 50 indicates expansion. stocks extended losses after the reports. the final rating will be released on january second. large japanese businesses cut their spending. it was a slight contrast with an increase in sentiment. the sentiment index among large manufacturers began estimates. we'll sports direct by hostile stake invited us. shares in the dump and he plummeted last week after year- end results. our markets editor manus cranny has been looking at the story.

manis, what is the latest development in this? >> there is a lot of speculation, the owner mark ashley has form. he bought a three percent stake in the gas in 2007 and sold it at a handsome profit. this has to do with chelsea kits. itsells $10 million worth of online. it is one other best-sellers. this comes down to audit us saying you guys are undercutting our prices. you're selling the kid for 45 pounds, i got the selling at 55. it is about brand association and prices and control of your product. down to, when it comes it, you have a billionaire who is rather irked by the suggestion that the stores are scruffy. that seems to be the takeaway for one of the sunday papers, sports directmes"

is a 4 billion pound instructor and they do private high and sell it cheap. they'd like to have a solid relationship with their suppliers. as the critical issue. he's not a billionaire to be trifled with. this is magnified to work in his helicopter every day. he left school for little academic education but i got to be have a good recession. he is worth under 6 billion pounds. his wealth has gone up by 50%, francine. ashley, from people and know him, he is a tour de force. i think that is the way i would describe it for you. >> all right, thank you very much manus cranny with the latest on the desk. let's welcome allegra perry. thank you so much for joining us on the program. ncler opened well, 42%

higher. >> i think it underlines the extent to which luxury brands are valued today because at the end of the day there are few of them that have the heritage and credibility and authority to build that up. obviously this is a brand with 60 plus years of heritage and has a distinctive niche and is very specialized and outerwear. it is clearly the dominant player in that area. with thes we have seen last few ipos in italy, that tends to be demand for these brands because aren't that many around. >> it is something about heritage. at the same time, it is outerwear. how do you diversify? is associated with skiing. if you're going to grow brand, needs to be more than ski wear. >> that his right. on the one hand that is a big positive.

the issue of how to diversify from that core category which is 75% of sales. if you look at what they have done over the last three years, the brand has really evolved. it is a credit to this management team for injecting more fashion and evolve that category away from strictly ski wear. now it is seen more as an accessory. i think it does create a challenge. clearly the most profitable highest return categories are leather goods and shoes. i think to go from that category of outerwear into those categories requires time and investment heard it is not always successful or the most complementary category. i think are very springs to mind when i think of moncler. when ink of burberry it isof moncler. definitely doable.

there's a challenge ahead but there is a huge opportunity for this brand beyond diversifying its categories am also in terms of its regional mix. >> they isll sell a lot to europe. amazing to see the breakdown in sales of how much actually goes to a domestically. >> over 50% of sales are in europe, within which most of that is in italy. i think to some extent that gives you an idea of the opportunity that this brand has to continue to internationalize. count is in line with its regional mix. there's a huge opportunity given that there are only six stores in america's and only 36 stores in asia. overall with only 100 stores globally, think about the likes there's a huge opportunity to expand the on the

market and gain traction and presents another markets which can be more profitable very >> will this really become the it has any? absolute transformation. they don't only have trenchcoats but they have shoes and bags and all the accessories. can moncler diversify as much identity?sing its >> it is a challenge. it will have to remember its core because customers gravitate to brands for what they're very good at it i think it is doable but i think it has to be done gradually. we they talked about that in the ipo perspective. i think it is a question of how it is managed and executed. if you have more control over astribution, that becomes little more easy because you have to control merchandising and sell it all as a complete package. i think it is doable, but it is not going to change overnight.

that outerwear court will remain elevated for some time. >> when he started the conversation, you told me it is owns thisuse moncler key were . are these the brands that will do better than others because he knew exactly what you're buying into? >> if you look in the last few crisishere we have had a or there's been subdued growth, what you have seen is all the brands outperforming the core categories. this illustrates the extent to which consumers still see) for their core categories and what they are known for. i would expect that to be the case and that is why it is going to take time for outerwear to down as a percentage of sales. i think they have all the steps in place. there've a great foundation.

it seems like a great management team as well. there've all the steps they need and all of foundation work in place in order to raise this rant to the next level third >> allegra perry, managing director at cantor fitzgerald. coming up, the world's biggest social network is among a number of companies planning to use recognition to tailor pick you. ♪

>> first, bloomberg. i'm francine lacqua in london. streamingn the move." live on bloomberg.com, your other devices.nd we're talking about other ipos to moncler. are we going see more ipos in 2014? luxury and tech are hot right now. >> it has been heating up over the last 12 months. there are definitely a few candidates that have been potential ipo candidates. there been a few in the u.s. and

premium spaces. it is heating up. ibo the one action. we have had a few years of strong growth. so .nk sectors ofm&a, the has been strong. they're looking for a way to deploy the cash. this is led to increased activity. acquisitionsewelry , all thosend others activities suggest more is coming. >>re hasn't been much m& m&a. >> are stocks too expensive right now? will see a that we correction in 2014? >> to some extent we have seen a

correction in the third quarter which was a class of numbers we really had for the sector. it showed a deceleration in organic sales terms. i think potentially some of that might spill into next year as a result of repositioning strategies. i think to some extent the sector has slowed already and investors have pulled back in most cases, already reflecting slower growth. this sector tends to be focused on momentum. it is very momentum driven. a scissors some expectation of change the shares tend to reflect that. looks overly it expensive, considering a few things. considering in terms of regional mix, we're in a position to see continued mix fx changing in terms of higher markets. i thinkinal margin -- >

you have a boost which suggests one of the reasons why the multiple could be higher. the second thing is that distribution control is a key theme in this sector and all the brands, irrespective of looking toare all increase their distribution control. that leads to pricing power. that is another factor for why that margin could be higher. going back to the theme of m&a and balance sheets. they hire multiple is justified. longer-term, i would say this is a sector which is well protected traded has high barriers to entry, difficult to replicate heritage, that is something ofch you don't see a lot other sectors. ultimately, there is a premium that is justified for that reason alone. >> you're talking about repositioning. if you look at brands and stories, you're saying that a matter of was

implementing the new strategy. the elevation strategy in china. as a result we saw slower growth. it was negative in the quarter. in terms of that brand, they're doing all the right aims. we've seen the elevation strategy play out in every market. it is done very successfully and this is the last big step varied i have no doubt they're doing the right thing but we might see another couple quarters of slower growth. vuitton is somewhat missing in parts of the product range. euros-2000 the 1000 level.eather item

some time.ng to take it would take maybe 18 months before we see a pickup in terms of revenue growth. >> two stocks to watch out for, allegra perry third managing director at cantor fitzgerald. minutes i'll be joined by michael anker guy johnson. guy, we have a packed show. >> we certainly do. his and start off at 9:00 with pmi numbers. we see a clear differentiation between the german numbers delivered a few minutes ago above expectations and the french numbers below expectations. what is going to happen next? ecb as well. we will talk about that story plus highlight of the show, the subject that you have been talking about. we will be speaking to the ceo ofmoncler. jumping nicely. your old friend.

we'll be talking about big brother going shopping. facial recognition software at your supermarket. we would talk about that story a great deal more. fran, back to you. >> guy johnson with "the pulse" coming up 15 minutes from now. former executive steps down to avoid perceived conflict of interest in brazil. both carriers compete in the country. the chairman of italy's market regulator says that blackrock local rules related to telecom italia's stake. like rock failed to disclose that its stake in the carrier rose past 10%. blackrock says it has just under eight percent voting shares in telecom italia. amongok and walmart companies planning to use facial recognition scans for security or tailored sales pitches.

tesco is installing face scanning technology at gasoline stations to tailor advertising. now let's get to international correspondent hans nichols for more on that story. hans, face recognition is going to be our new best friend. >> well, that is one way to put it. the very companies that plan to exploit this technology or use this technology will help draft the rules in meetings today with federal regulators in the states on how these images are stored, how they're used, so companies like walmart, like faith look will be meeting with the department of commerce today in washington. the retailers are saying they don't want to strangle this technology in the crib. they want to give it time to flourish. in the u.k. you have tesco talking about using facial recognition to tailor ads, mostly by age and gender.

curacao facial technology works. first of all scanned images and look for digital signatures. from these digital signatures they can extract a pattern and extract a phase. cold,ce is lifted, it is a phase current isn't created. it is matched against a database. the question is who owns that database, how many faces are in there and what rules govern that attaches. then they take the pictures and rank the match by confidence. what you're seeing, lisa this stage, i learned no freer in the beta stage of technology, but at this stage what you mostly have is confidence on gender. that allows companies to tailor their ad based on whether or not you're male or female. a little more confidence on age as well, but it is gender where there is confidence. this is the wild west. we don't have any real rules governing francine just what and how companies can use your face when it is out there in the public very francine? policy groupsour

saying about this? >> they are outraged or they're preparing for battle. this is a major issue for them. they have some backing on capitol hill and we will see how this happens in the next six months. so much for that. hans nichols from berlin. next, bloomberg speaks to the real wolf of wall street who points out what he says about letting his kids work in finance. ♪

>> welcome back to "on the here" i'm francine lacqua in london. now, the wolf of wall street stars leonardo dicaprio. fallrug fueled rise and the kim legend thanks to a best- selling book. bloomberg sat down with the man himself. >> my name is jordan belfort. the ureter and 206i made $49 million. >> wherever went i brought my value. is all this legal? absolutely not. was almost a blueprint of what to do and what not to do. when i was at the bottom

-- when is writing was on top i was as good as people were saying. >> greed, for lack of a better word, is good. think a lot of people bought into that notion that there's something noble about making as much as you can as fast as you cannot really focusing on who gets hurt along the way. it is not true. i was taking enough drugs to sedate it heard of elephants each day. i'm not making any money on the books of the movie. as a broker or traitor, you're really not creating, you are trading off the ingenuity of other people. to feel as ify

there's nothing tangible attached your profit or dinners ineptness to the money make any try to attach value to spending. if i decide to go in that direction of trade to stay on the path of crating value. >> our markets editor has more in common than you think that mr. belfort. i got the shirts, not the pay packet. 49 million come i could do with a few new sets. >> we are on fed watch this week heard >> i go with goldman which is the minority. bottom line is that march seems a long way away, doesn't it? three and half months. that line is a long way away.

>> it might come as early as wednesday. thank you, manus cranny. guy johnson and i are back with "the pulse," which is next. ♪ . . . .

>> montclair magid debut. we are alive with the maker chairman and shares soar on the first day of trading. relating -- the lady in waiting. >> going shopping. walmart and facebook gear up to use face recognition. they will get a hand in setting the rules.