>> 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.

welcome to "the pulse." we are alive and bloomberg's european headquarters here in london. >> we are getting some breaking news. a bit of a mixed bag. actually, no, that is than expected. -- better than expected. >> we have pmi numbers out of paris that are in the 47 range and the german numbers that are into the 50s and looking pretty good. that is a big spread beginning to emerge across the eurozone. a bit belowwere expectations. let's get to our story. largest trading for a company since 2010. caroline hyde joins us with the very latest. us about thes

open. >> you look at the staggering amount of demand for the shares and you have some 20 billion euros worth of perfection or investment and they are selling three quarters of a billion euros this morning. the twoand carlisle are private equity companies that are selling their stakes. they did not get as much as they potentially could have. this is the biggest ipo in two years. the biggest in two years. many analysts are thinking about the potential growth of this company and the amount of demand for the shares. we will see shares popped on the open. >> i guess this is a smart way of handling it. what are people buying here? wearthey buying a ski

company? >> they are buying a company that makes jackets that are sold in aspen and key ski resorts. they are in expansion story. year jumped by 35% last and are ramping up. they will be opening 20 per year. there is 20% growth per year in the amount of areas and stores that they will be having. &a towill be buying a m diverse affiant in the very expensive ski jackets that they currently have. >> to have to get away from europe and 50% of the sales are made in europe, caroline. a share inarks

europe. >> this is a story of confidence in europe returning and we have a company that is known for demand. think of the other a tying brands that have tripled since they sold shares last year. there is a vote of confidence in luxury and in europe. we have seen double the amount of shares in europe. $32 billion worth have to spend raised. more than double than last year. montclair is the biggest share sale in italy for two years. back to you. >> caroline hyde. thee will continue conversation with the chairman at the top of the next hour of the pulse on bloomberg tv. >> looking forward to that conversation.

let's move forward to germany. have a government and the opposition party gave its support to it. we are talking about a coalition government and they are not the opposition party anymore. merkel has some interesting in -- appointments over the last 24 hours. the defense was amongst them. david tweed has more from berlin. reasonablys out in a strong story and, in many ways, it was the spd that ran the coalition building process. what did they get out of it? >> gabriel is the president and chairman of the sbd. he undermines his leadership of the party. that is one thing he does. he is going to take over a ministry and they are going to

merge the economy industry and that means that he will oversee the transition and the great nuclearransition from power to renewable power. merkel says it is a priority for her government. they are paying for electricity and it is absolutely key that they will be taking it. merkel is coming tomorrow and will get wolfgang to keep his position as the finance minister. 31 years old. there was not a guarantee that he would keep this position. he keeps the position. if the second most popular holidays and. -- she only wrote about on thursday night and it surprised her. it is nine easy ministry to had and what -- a lot can go wrong.

she is already being dumped by some newspapers as the crown princess of german politics. some believe for that should merkel stepped down before the end of her term, maybe she would who is groomed to replace her. it's something we'll have to keep an ion. we are going to cross over to the unexpected move. ecb.n quit the who will replace him? thatlfgang was asked about . the vice president of bundesbank was named and she could be a ecb fit to replace at the for a couple of reasons. the bundesbank is a supervisory role. it just so happens that at the opening for the

position of the european supervisor and the ecb banking supervisor. that is going to start up when they take that responsibility. issue is to take that job, the chinese would stand between the supervisor and the rest of the ecb with monetary policy and she would not be making commentary about policy. thehe backed the views of big thorn in the side of mario draghi, with regards to the bond opposition program, that would be acceptable to mario draghi. that is another one to watch. >> yes. lots of changes all around. some interesting times for the ecb. david, thank you very much indeed. mass protests continued in the ukraine and the president is meeting with president clinton tomorrow -- putin tomorrow.

ryan chilcote has more. let's talk about what happened on the streets. >> what is striking about what happened this weekend is not the hundreds of thousands of people out there and demonstrating because we have seen that for three weekends in a row. we had impeding groups -- competing groups of demonstrators. these people are not there to express their views on the finer points of trade pacts, this is about their values and where they see their national identity and the ukraine's geopolitical royalty. thenstrators believe that future lies closer to russia then the european union. their for a few hours and the numbers were not that large. meaningful and you saw

this usually silent and not insignificant minority out in the streets. you had the noisy 200,000 people in freedom square who were saying that the ukraine should be closer to the european union. yet john mccain speaking to them , saying the united states is firmly together with the ukraine in their struggle and we heard from the ukraine prime minister. he said that one of the reasons that they cannot join comes down to values and they want them to legalize gay marriage. -- he asked the crowd at that was mainly were prepared to do. "no, no, no, no." president on his way to moscow and the big

expectation is that there will be this. they're discussing a loan to the ukraine and when opera vote -- provide details. what is clear is that the ukraine is in dire straits, if you will. reserves are at a seven-year low thereeir are questions -- are questions. beenean union has not forthcoming about this and the expectation is that russia would provide assistance. we are in an identical situation last year. cyprus asked russia for some ai d. muchan, thank you so indeed for the latest out of ukraine. first countrythe

to exit the bailout program since the european crisis began in 2009. they have access to the ecb bond buying program. >> capital spending in this fiscal year, according to the japanese reports, is going to increase sentiment to higher places since 2010. largely beacturers estimates. -- beat estimates. >> the u.s. will draft a voluntary code of conduct for how images and online information can be used. they will use face recognition to tailor advertising. >> will talk about this and the rules that will be set around

the story. >> shares in the italian jacket makers surged 42%.

>> let's continue the conversation.

in investor demand for the ipo was high. -- the investor demand for the ipo was high. will, -- raul, thank you for coming on. what will this do? how many puffy jackets can you buy? back from thisp company, you have to recognize sales come from the puffy jackets that we are talking about. this company will be pointing to growing and telling you about 50% of sales that are in europe. fair enough. they have 100 stores and there is room to grow stores and categories. the problem is the heritage of this brand is different and less

wrought than other brands. stretching the architecture away and into others categories will be a challenge. gloves are easier to go into. >> the share price as gained 40%. what does that tell us? >> units and luxury. if you look at ferragamo and the equities, the exclusive brands offer the growth in luxury. and ite retailing struggles to get growth. you have the brands and the niche brands that will get exciting growth. people see ferragamo doing this and broadening their product base. >> i think you are right. they came on the international

scene four or five years ago. brand -- a neat niche brand and the company has stores in -- >> they sell some or jackets. or -- summersome jackets. >> i was skeptical about this brand. this is a brand i have known all my life and it is amazing to see it come out without them adding anything. use of the same thing about burberry. -- you said the same thing about burberry. how much time do you give mont nclare to diversify?

>> the difficult stuff comes after that point. there's only so much you can go into, in terms of the network and this whole question about what you do about the summer collections. you know the template for any investor is bringing in leather and that will not necessarily work. cler will notop mon go back to buy a handbag. that is not on the agenda. how do you build this brand beyond that? >> thank you so much for all that. it is an interesting conversation. us -- join us in the next hour on the pulse. >> will talk about other things in the pipeline. $32 billionerated

and that is double of -- -- figure -- double last year's figure. hello. i'm a general partner running a private equity this morning. i'm looking at a 40% of valuation jumped this morning on moncler. i'm pretty positive about next year. >> absolutely. looking at ipos and going to them because of the average performance. why not go right now? a lot of companies are lining up deals. >> what does the pipeline look like and how big is it? >> it is pretty huge and there are companies everywhere. banks that are looking

at assets and we speak to bankers that tell us that we are likely to see exits through ipos. it will be a busy year. sales fall off the cliff at this point? how does this dynamic fit together? >> we will see both happen. if we're looking at both markets right now, it seems like they are not more open for europe. why not go for that? >> judging by today, why not? on wall come, the wolf street. boyit down with the party that the character is based on.

>> it is time for hot shots. we deliver the best pictures from around laurel. >> that is right. -- from around the world. >> that is right. showdown in one is our ace.

old one without breaking a sweat won without breaking a sweat. next --than 100 say receive lessons. >> mission accomplished for harry and his injured soldiers. withfinished the walking the wooded south pole challenge. he finished the 120 kilometer track through the south pole's bad weather. prince harry said that it was a success. >> let's take a look at the market. manus cranny is with us. >> they have pulled themselves

up on the bootstraps and missed estimates in the heart of europe here in france. that is the critical message. these markets were disrupted by the chinese data and showed a low for manufacturing. the focus will shift to the united states of america and it .s indicated on a flat opening goldman says that there will not be a taper. private that it is all -- it is all priced in and it is hard to swallow that view. down 10% orts went 15%. you.to >> manus has the latest on the markets. we are heading to break. >> $74 million is how much the hobbit sequel will take in over

the debut weekend. it topped box offices across the america. we will be back in a couple of minutes.

>> good morning, everybody. welcome back good you are watching "the pulse." i'm guy johnson and these are the bloomberg top headlines. opens 41% higher than its ipo rice. investors wanted 27 times a modest dock offered. we will be speaking to their chairman later on in the next hour. will be sworn in tomorrow for her third term as german chancellor.

.he has appointed a cabinet this includes the first female defense minister. are amongnd google the companies slated to use face software. that's talk more about that story because it is fascinating. our international correspondent hans nichols joins us from berlin. so, the technology is coming into place. how is that technology governed? >> you want rules of the road. it was interesting is that the very companies that may be exploiting this technology are going to help draft those rules. they will be meeting later today , these are representatives from who willand walmart wil

meet and set guidelines. they are voluntary. the retail world is saying they don't want to strangle this technology in its infancy. already in the ui k you're uses're seeing tesco technology to determine the age and gender of their customers. a sickly have a digital formula, a mathematical equation for someone's face. what the technology does is scan everything out there, comes up with an algorithm that looks like a phase. from that it extracts the face and creates what is called a phase print. and is stored in a database they see how certain they are about that face. . the question is can you do more beyondder and age. that, how specific and how certain can you be?

right now, the technology just isn't there. guy? >> technology has a habit of becoming better over time suggest things will become more accurate. given the fact that we have spent so much time talking about nsa spying and the relationship we have with data, presumably privacy groups are upset about this. >> they're going to be outraged and that is to be expected. the question is will they have political will or momentum behind them. in the senate you're seeing in individuals like al franken really pushing for it. you can expect something a little bit beyond what we're seeing now which is voluntary guidelines. remember, there's always a question of jurisdiction. the googles, the facebook so going to have to comply with european regulators as well as u.s. regulators. >> times, thank you very much indeed. art european correspondent

joining us from berlin. >> we have another company story for you. will buy hundred 27 shopping malls for a 2 billion euro deal. where exactly are the stores that they are buying? >> 63 of them are in spain but also in france. seven are coming from italy. it is pretty fascinating. these sites are fromklep klepierre. they are buying them back after having sold them earlier. will hold 42% of the company. leadingt to become a shopping mall owner not just your individual small sites. they want to help the

hypermarket part of the business because they have the largest stores. they haven't been working and tesco is doing the same in u.k. making a morbid destination for shoppers. lexus is reallyc about having control. this is a turnaround forarrefour. they're buying sites are the arty have a big hypermarket. >> they want is a little sick and get to lure in customers and start spending the cash in their own hypermarket. interestingly, they're starting to see a turnaround in the hypermarket because for the past two years they haven't seen any increase in sales. for the first time in the third quarter we did see them post an increase in sales at the hypermarkets unit. get 1.5 billion euros in proceeds. they might flesh out some m&a themselves. they will restructure their own portfolios.

>> caroline, thank you so much. hyde with the latest on the 2 billion euro deal. guy. >> let's go from what is happening in retail to what is happening in telecom italia. shares of the rise after blackrock revealed they had nearly eight percent in the company shares. matt campbell joins us with more. potentially a little bit of a mess is how the stock is declared. first of all temperatures about how that happened and second, what does this tell us about what happens next with telecom italia? >> as you said, there is a mess about how much of telecom italia blackrock owns. a bit of who's on first infusion between new york and milan, i think. blackrock claiming its convertible bond should be included in his total. italian regulator says it should. a sharerock disclosed

there was greater than 10% wch is a threshold at which you have to announce a holding in the time markets. with more interesting is that blackrock, the world's largest equity investor, has taken such a large position in telecom italia that it is the second- largest shareholder after the controlling shareholder which is telefonica.ic blackrock is going to have a big role in deciding the future of the company and particularly the business in brazil. >> do we know that it is blackrock? other acting for itself or someone else? that is something we -- >> that is something we don't know. that is not something they are saying quite yet. there is of course a rebel investor that is trying to oust the board of telecom italia. that is something that will be voted on at this meeting on december 20 third blackrock will have a huge say in the outcome, or as you point out, whoever blackrock is holding this share

on behalf of. >> in the scheme of things that is a lot of money, but in telecom land it is not. options here? when you talk to people about the future of this business, what are they saying? >> i think blackrock turning up tells you this is a virgin amick situation that pretty much everyone in the telecom world things is going to change somehow. it simply cannot continue. you can't have a company with a very substantial operation in brazil, which is the former de facto telecom monopoly in italy worth 12 billion euros. it does make sense. there's lots of debt there but this is a going concern. this is company with a future that is large. it is no question that market value doesn't represent the value that is inside of telecom italia. the question is, what happens? to severn trent by? telefonica controls the company. there's also the future of this brazilian business which telefonica would like to see broken up.

kinds of moving parts. i'm sure we will talk about this plenty more. francine, over to you. >> guy, sports direct, the british discount sports retailer is next. manus cranny is looking at the story. talk us to the story, manus. >> it comes down to chelsea kit. adidas.ld by th it is a valuable commodity for retailers and adidas. adidas has stopped are going to stop supplying chelsea kits.

basically, you go in for great bargains. it has everything there it has a billionaire owner, mike ashley, who if you read the front of the sunday times is urged by the fact that adidas could be perhaps casting aspersions on the scruffy nature of some of his stores. it has brand association, does adidas want to be flogging the kit through sports direct. it is price competition and control and alien or status written all over it. so with that in mind, the story goes now that so emerged is mike ashley that he may be seeking to build a stake in adidas. i don't know. >> he is a billionaire. what we know about him? >> he's a really self-made guy. i know him through industry over the past 10-15 years. i met people have done business with him. boisterous man who likes to make his presence very well felt.

he owns newcastle united, huge football team in the premiership. he really has invested in that, he loves his football. he but brands that have trashed and burned like dunlop, lonsdale. the king of discount sports clothing. it is his passion for football that really counts. he goes to work his helicopter every day, as do i. he's a very powerful character. up mr. how i would sum mike ashley. >> coming up, leonhard to caprio plays among on the big screen, but we talk to the real wolf of wall street. the disgraced party board and brokers tells us what he thinks of the new film and the state of wall street now. >> i needed to mold them in my

own image. >> this is the greatest company in the world. >> i was becoming a legend. ♪

>> welcome back. 15 minutes to the top of the hour. this morning we have seen eurozone manufacturing via my numbers come out. we have seen service did as well. the aggregate number for the manufacturingber is widening.

we are going to get many more signs during this quiet. as 2013 dresser close, next guest says he sees no rush for the exit from qe in the coming banksin fact some central might be leaning toward it. joining us to discuss this report is neil williams. yay or nay this week? >> if we do, it will be the first of many baby steps. the fed simply aren't yet ready to start watering the green shoots we have had. if we do get the start of taping , is going to be the first baby step. i think this time next year we will still be talking about when end. >> are we going to

hear more about inflation thresholds? are we going to hear more about unemployment? what else are they going to tell us? >> they could come out with some new gimmick. my concern is that the policy toolbox is so empty, not just in the u.s., but in the u.k.. where are really scraping the barrel to think of new things and some stages that will come back to bite us. is money policy getting to come pick it? we don't really need new things. central banks should simply put their hands and say your the concealer, it is up to you. toolbox is getting empty. but we don't need new things because larger the u.s. economy and u.k. economy are at least recovering. >> there are green shoots. that not too many people are chewed up about the economy but it is inevitable after 5-6 years after the first traces of the crisis.

the question is, are central- bank sufficiently confident to start watering the shoots are due the carry-on? we still have this dark cloud hanging overhead which is the eurozone which is not fixed third >> is talk about the eurozone. we saw comp posit number for the whole of the eurozone which is ahead of expectations. it looks ok. at least we're starting to get some decent traction. the bulk of attraction is coming out of germany whose numbers were quite good. the french numbers were in the low 47's. in ecb, deal with numbers that have that spread? , draghi has helped get the symptoms down. is that thesurely euro is still in search of a government. germany is not prepared to be that government, understandably and i don't think merkel three is any different than merkel two

or merkel one. france can't be a government given the pmi's you just mentioned. also, spain worries me. they started political campaigning next year for big election in 2000 16. on the one hand, if they do nothing their funding costs go up. if you do something with 60% unemployment, they could get --e -- with 16% unemployment we see something new from the ecb next year. it will take constitutional change which is easy and secondly, for germany in wait,ular, the longer the the greater the chances euro goes up there it >> neil, we will leave it on that note. neil williams, chief economist of the hermes strategy group. isthe wolf of wall street one of the most anticipated movies of the year. dicaprio.eonardo

bloomberg sat down with belfort himself. belfort.e is jordan the year i turn 206i made $49 -- the year i turned 26, i made $49 million. was all this legal? obviously not. >> when i was in the bottom and everybody was writing high, i was as bad as the poor saying -- when i was on top people i wasn't as good as people were saying. i won't lay blame with anybody especially if fictional character like gordon gekko.

he stood up and said greed is good and i 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 focusing on who gets hurt along the way. it is not true. toas taking enough drugs elephantsride of developm each day. i'm not making any money on the books of the movie. until i pay people back, don't make any money. as a broker or traitor you're really not creating. your trading off the ingenuity of other people. it is very easy to feel there's nothing tangible attached your profit and you have an emptiness to the moneymaking you try to attach money -- you try to attach value to it by spending.

>> the wolf of wall street is out this christmas. solarup on "the pulse.", energy gets recharged. stocks are up 200% this year. when the sun is shining down on the tour next. -- why the sun is shining down on this sector next. ♪

>> first, bloomberg. good morning, everybody. you are watching "the pulse." we are streaming on your tablets, your phone and of course we are on bloomberg.com. energy, solar stocks are up around 200% this year. stabilizing prices are providing some manufacturers the opportunity to make a profit. that's asked jenny chase. she is part of rumored merge new energy financing. she joins us. icing the stocks go up and down a lot. we have seen and up a lot over weeks and months. what has changed? >> basically, demand for solar products is stronger than we thought it would be in the first half of this year. japan has gone extremely fast.

we knew japan would be a big market public that it would be next year rather than this year. also china has come on very strongly buying modules. market inre exciting places like chile. even at these new prices which are now quite stable. -- >> why has this happened? wises demand therefore that tvs it wasn't expected to be very? their? >> basically we are not good at estimating. it is not as difficult to do this in japan as we thought. essentially, the industry has been incredibly ingenious in selling. also, the chinese government has helped. it took a long time this year to bring in the plan that was going

to build a love solar. once it did come in with a plan, it now looks like it will do almost 10 gigawatts is here making china the world's biggest solar market in one year ever. >> that is an amazing story. i don't always get it right but at least the direction of travel is good very jenny chase of bloomberg's new energy finance team. fran come over to you. >> for those listing on bloomberg radio, the birds first word is up next. "hour of "the pulse. is coming up next. we talk about face recognition. facebook is doing it, walmart also wants in on the action and about thatalking t as well. we will see you in just a couple of minutes. ♪

moncler's mega debut, shares maker.r the ski wear alive with the chairman, a newly minted billionaire. -- we are live with the chairman. >> lady in waiting as angela merkel appointed germany's first female defense minister. >> big brother goes shopping. gearing up to use face recognition to pitch products, and walmart will also be helping to write the code that protects the very same shoppers.