>> vowing to campaign for political prisoners. he said he would never return to politics. he will work to free others days after being released by the president. apple possibly through and china. inside of the new deal with china mobile that can add hundreds of millions of potential iphone customers. lessons from a gambling approach. our interview with the billionaire sheldon ho will talk about the future and why he is not placing his event online. bet online.

>> welcome to "countdown." i am mark barton. to russia positive richest man. he is now in berlin after giving a pardon from president putin. he spent more than 10 years in prison. he was released in a deal with angela merkel. good morning. for khodoweekend rovsky walking into the first -- first scoffers and more than a decade after leaving his status --the most popular print prisoner as becoming the most famous exile. he was received like a rockstar. breaking between cameraman

jockeying for vantage. i have not ever seen pandemonium alike in this. did he come out fighting said he would take aim at vladimir putin? white the opposite. he said he does not get into politics. -- quite the opposite. tohe said he does not want get into politics. he said he will be a voice for political prisoners across the world. he said he does not think people should boycott of the winter on memphis. i spoke them a little bit. i asked him what he would advise. -- in the winter olympics. -- i spoke to him a little bit. he was russia's richest man when he went to prison and a decade ago. he said. forget i should give advice on that matter. he said it comes down to looking at risk and reward. to think isill like a step in the right direction of normalizing the climate in russia. andry measured khodorovsky

reminded people while he is a free man, he is a hostage in a sense. he has several friend in prison in russia and that may have been weighing on him as he answered the many questions he got yesterday. >> on what should we make of all of this happening in berlin where you are? >> yeah, not just berlin. in germany, but all of this was happening in a museum at checkpoint charlie. i was astounded this press conference took place at there. i asked him about it. he said these people were very helpful to me. they have an exhibit celebrating khodorovsky and paying tribute to his time in prison. he played down the idea were in the cold war anti-was some type of component of it. we have david tweed with us now. our expert in berlin to talk about this.

this is a big success for angela merkel. >> i thought it was interesting that khodorovsky said in his news conference yesterday that he had to thank angela merkel. it was yesterday he became aware of our involvement in the negotiations which went for 2.5 years. amount of timey going into the negotiations. it shows the success angela merkel can do when she was her power behind a position on like this. negotiation is 86 years old. he was a forest minister -- foreign minister in germany and resigned in 1992 when of the wall was coming down. he was the chief negotiator. would you look at this whole wrist lease -- hold release means, it is a victory for quiet diplomacy. germany does not throw its weight around.

it shows angela merkel can achieve, what she can achieve. >> this is night and day and comparison. >> putin was described as a flawless democrat. extremelykel is critical of human rights. she can still achieve a negotiation. stay with this. we'll pass it back to you. we are going to cover khodorovsky first two days of freedom and berlin. russia's most famous prisoner. now the most famous exile. >> thank you. both in berlin. apple fighting to get a market share in china with a new deal. they will be able to sell the iphone through china mobile starting next year. they have almost 800 million users, twice the population of the united states. let's get to beijing. >> good morning. they were talking about 2.5

years of negotiations to get that political prisoner out of russia. apple has been negotiating with china mobile for about six years to get into this market. it seems like all those years of hard work have played out and does come to fruition. a multi-year deal but we do not have the financial terms. it is quite significant for both parties. it'll give apple access to china's bigs wireless network in the biggest market in the world. subscribers inn addition to those already using iphones over the rival networks, china telecom and china unicom. they have offered it since november of 2009. telecom has offered to send a last year. china mobile playing catch-up. there was a big stumbling block presumably over china mobile homegrown technology. no other carriers globally have

adopted this technology. apple up until now i had been reluctant to provide a td compatible iphone. there were revenue differences between china mobile and apple. those differences have obviously been resolved. the iphone is going to go on sale in china mobile as of january 17th i think it's the date. >> this incursion news for apple. what about china mobile? deal removes the competitive disadvantage they had a drawing in the high-end users. those who can afford to pay more for the iphone. they have close to 800 million subscribers. all of them not going to be migrating to the iphone but if they can get a 100 million, that is a huge thing for china mobile which is already facing perhaps

the first drop of decline in a decade because higher subsidies and cost of 4g rollout. getting the higher margin iphones in the mix is positive for china mobile. >> thank you. let's look ahead. of european banks. the industry has risen 23% and year measured by the euro stoxx. for a look at the prospects of banks in 2014, let's bring in senior banking analyst, bloomberg industries has 140 analysts who provide research and data on a 100 industries. john, good morning. one of the big events if not to the biggest that will take place in 24 for european banking industry is the ecb asset quality review. >> absolutely. with this ebanks preparing for

this. haven't had three or four years of running the provisions -- having had three or four years of running the provisions, it has never been lower. -- inhas a coverage ratio 2006, one of the big questions l, are you declaring your oans in adequate or bad and how much cover should you have? what would this do if banks are required to increase coverage? >> bullet to be a barrier for profitability for banks -- will it be a better year for profitability for banks? >> it is going to return 8%. versus 6% it is here. which is slowing down the most banks. profitability will rise.

how much growth is there in this environment? and the question of margins in the buildup of lost coverage and how that might impair profits. >> what is the outlook for cost reduction? and, to fall from 55% this year. positive, not to judge riven by headcount. -- and not just age riven by headcount. driven by headcount. [indiscernible] >> the raiders of deals. us, willt was telling 2014 be any better? reviewasset quality could fail certain banks. spain or portugal. up-ice he some the larger

players benefited for reasonable deals -- you can see some of the fromr players benefiting reasonable deals. it's a little too early. what do spend more restructuring than m&a. >> held with closer to the union -- how do we get closer to the union? they said no public funds will back up. there seems to be the criticism. >> you understand. germany has been in the eurozone for three or four years. that had 10 years to build a 55 billion dollars. what happens if there is a problem in the near term? that is the real question. >> thank you, john. bloomberg industries senior banking analysts. what can the eurozone expect

after the fed taper decision in 2014? our next guest has more analysis on that. his top three stocks for the new year. stay with us. ♪

>> time for company news. a $1.5an to sell billion. most int shares up the six years. they plan to sell $3 billion and assess overall. game in had is biggest four years to outsource its handset production to foxconn. a seat as a transformation into a smaller services provider. ace -- they took a right down. tiffany is being ordered to pay $500 million to swatch group as -- after joint venture failed. were inruled they breach. they said they blocked the development of the swatch watches with tiffany branded. they were taking $300 million charge in the fourth quarter. welcome back to "countdown." i am mark barton.

barclaysguest said will be one of his top picks for 2014. us on the set.ns we would talk about the stocks you pick in at the next segment. since 2007.r europe will we see the same again next year? >> it is been a stellar year. we will see further gains. what is interesting with had this wonderful stockmarket rally at confidence is not that high if you go across the street and recovery is very fragile. it is so perpetuating. there is a risk it could derail quite easily. >> and the fed starting tapering and the fed starting tapering in january, how does it change? started inuld've

september when they signaled whether burba to do it. everybody is taking it with a little bit of salt. that washey signaled when it. the demand -- >> many are thinking it will be $10 billion through the end of the year. you'd think they should finish it sooner? >> the market is slightly addictive. a sharp decline would be good as long as economic figures are there. >> they seem to be there, don't they? the gdp numbers on friday. >> i think recovery is stable. that will be the question mark. whether the global markets recover, a quick unwind would be good. >> the fed will continue if the rates will stay low. that is the message but mark >> low interest rates are critical.

people on the street are not comfortable for the if you raise up quite quickly, that would've why did the recovery. how will heey, convince investors with economy rising and housing markets all over the place. how with the governor of the bank of england convince investors that rates will not be rising? >> is a very difficult job. bubble comingrket along. get into seven percent at the the end of the year. >> he has changed it. you said seven percent is a guide. we do go below. the fed has not come to his for guidance. >> true. left is toreally have credibility. what he said is irrelevant.

>> the unemployment is 7.4%. what point do they started to issue stronger forward guidance? the next few months? >> would've already seen the subtle change. not a trigger. expect you to do something else, not talking -- >> a new threshold. or is it a thing of the past? it is been bit, hasn't it? is not aecovery typical recovery we have seen. it all has to do with house price recovery. that would derail straightaway. criticizing the recovery. but somerset at least it is a recovery and maybe it will lead to stronger business investment. we got a plus side on the figures in the third-quarter gdp. maybe it will lead into a self fulfilling recovery. >> i think it will.

people are getting more confidence. the christmas retail figures will be very interesting. the first christmas we have cash. let's go spend money. hiring will begin to come back in. a lot of companies are going to keep flexible. >> u.k. shares are underperformed the european peers because he u.k. benchmark awaiting predominantly for banks and mining companies. that is a big reason. do the u.k. stocks, the think it couldou lack again the next year? >> i think it probably will. comparing to germany and the recovered it has dramatically. as they have had a turnaround in their economy. germany is in a massive boon time. recovering, itk.

is so global. economyout the global rather than individual light germany and southern europe. >> what was he something big blow up next year? >> i think we will. especially what is happening in germany and greece and spain and portugal. not for germany pushing but a server in your penn state saying we do not want to be the eurozone. the button saying we do not want to be in the eurozone anymore. >> joe rundle. stay with us. ♪

>> welcome back to "countdown." i am mark barton. still with us to talk about 2014 is joe rundle. your for big picks for 2014. one had a great 2013 stop easyjet. by 90 seven percent. >> the company has it right. they have got it right. they are moving more into business travel within europe. that is an incredible alternative. are a good service. they will continue to get growth and then positioned himself very cleverly.

another one in your chosen which is interesting is barclays. did not see the big again this year. 7%. program.form they are stepping up their assets reduction target. a couple of regulators looking at them as well. if they going to treasure mission? >> it is. -- are they going through a transformation? >> -- it is. the low interest rate. that should be positive. andglobal economy recovers it will be a little bit of pick &a and the return of banks and doing what they do, lending and making the mining. regulatory issues for them will always be there. issues. a few big i'm sure the libel issue will reemerge. this is regulators.

they went a long time ago. easy political point scoring. .> tepco some of my saves a brave pick. >> it is a fantastic company. it has a structure wrong at the mall -- at the moment. up.ng to catch if they can really focus on the u.k. and execute their strategy and go to smaller stock, takeaway the u.s., they saw bureau. >> problems in europe and asia. >> it is such a big company, a very slow ship to turn around. look at the success. they will go into that. they will claw back market share for -- share. >> thank you. -- first theresin

dinner reservations of the new year. that is next. ♪

>> i am mark barton. , he said he will focus on freeing political prisoners. he is in germany after being released last week from 10 years in a russian prison. isernational monetary fund raising its outlook for the u.s. economy. christine lagarde said there is certainty. in an interview, she credit the budget deal in washington and the fed plan to taper bond purchases for improving conditions. people in spain are celebrate christmas early.

the lottery paid out 2 billion euros. fattop prize known as the one. it is a welcome reprieve from spain's financial crisis. >> welcome back to "countdown." i am mark barton. straight sunday of kiev was filled. they are putting pressure on the president. president vladimir putin. mark champion is here to tell us more. mark, good morning. is it over in the ukraine, the

demonstrators have they given up? what do you think? >> it is not over. the protests are smaller. they will continue to get smaller. i think the fundamental issue remains. the west definitely lost this round. putin outplayed the marvelously. the fundamental question of where younger ukrainians want to be? it is a divided country. yet, we know on this one issue of integration into the eu, it is -- there majority want to stay there. >> a new move will being suggested. willing to gain traction? do they need to be behind one leader? >> they definitely need to. it is difficult. a political culture, a young company and. since 1991 and that they cursed

with their leaders. vich or in between, the orange leaders. there were always terrible. they have done the country a terrible disservice. we are in a position where you have a leaderless movement in part because the leaders have been insufficient. plays out, i do not know. it will be more about the ulovych makes.yan that will be the issue. if you look at the deal that was made. a big question if it was a good deal? >> is it a good deal? what do you crave give for this $15 billion deal? not know. do they said there were no strings. let's imagine there were none. and putin saying we are friends,

we are brothers, we are giving a gift because we are brothers. if we are brothers and you look at to be two parts of the deal we know about, we know about the gas, they cut the price by a third. the prices forger dollars which is not only above the european thee but if you think about transit required, it'll dramatically above the european price. the current price is $260. that is what it should've been. they said will stop extorting you for gas. he is not said we will give you a discount but we will stop extorting you. if that's the kind of brother you want, that's a brother you like. >> he is in getting people out of jail and broke windows and brokerages in the middle east. some has a yet outwitted the eu. the winter home ethics is a few weeks away. -- the winter olympics are a few weeks away.

>> he has been a inverse of obama. he is unchallenged. he can do what he wants domestically. nobody to check out. abroad, all of his plays have worked. if you look in syria, he got in the deal he wanted. he is doing tremendously. the question is there is if it is from playing a weekend strongly or see generally in a strong position? i think it's a former. if you look at syria and the chemical weapons, that was a deal he made because headed the u.s. struck, there was nothing he could do. he would be standing by and his client was struck and he did not know if his client would be able to survive in that. it is very important to him to make a not happen and he succeeded. not necessarily from a position of strength. >> thank you, marc.

highlights ofc 2013 stop which restaurant to look out for next year. the chief food critic. good morning, richard. up 2013. the year for restaurants. >> a great year. they have opened so much. i thought they would clear up some the less successful ones. where people coming in and properties going up. the space comes up now. a lot of restaurants compete. taking --rant that is he said a dozen people going flat. that is happening. >> one of your top 10 restaurants. let's check in through some of them, richard. so fast medical ones. in at number eight, café. -- some surprising growth.

>> it is a kind of lower-priced, down market of her flagship. where she worked years ago for gordon ramsay. beautiful dishes. and to the bar and eat. it is fantastic. >> jason addison had a busy year. >> he opened a little social. which is ang house much nicer place than soho. he's also going to open in the city. he is going to combine the two. he is putting in city social. he wanted to be a stop. three, this from

the team who brought you -- very popular. >> their charge toward three concepts before. the mexican place. with the steak place and it is taken off. several branches. first is the neighborhood and it is cheaper. ribs. >> you like grain store. >> a french chef. to start with the vegetables and the center of the judicial stop -- center of each edition -- dish. not to meet, just mushrooms. your number one is an agreement with jim carter.

your best meal ever? to be at the number one, why is it so special? >> it is my favorite stop over a decade. every dish has been thought through. food can have different textures. menueven have a game a which is fantastic. using the same supplier. even though it is easier, it is not french indian. this is indian. >> lots of people have been visiting. lots of big chefs in there. ago,n't there a few days in a new york. lots of big chefs stop >> is it difficult to get a table is mark -- table?

>> not too difficult for lunch but on friday night, good luck. >> what are the key trend in 2014? >> there are a lot of openings. it will still be casual dining or fine dining. i suspect we'll get more americans coming in here. and a lot of american restaurants are looking at the london. babalu and a big steakhouse. .e look to the steaks hot dog champagne restaurant. your favorite restaurant opening of the decade. which restaurant do you love more than any other? >> jim carter. -- i love finding --

dining. >> thank you. richard vines. swatch once forger $50 million from tiffany. -- wants $450 million from tiffany. we would tell you why next. ♪

some the most compelling images in the news.

it was the big one. a bigger splash. they jumped into a jacuzzi to celebrate. what is the seaboard? it lets you twist and bend music and notes. -- it is part to digital. 575,000 views in under two weeks. watching a charlie brown christmas is a tradition. would you recognize the dog in real life? dog oncruited the iconic the streets of manhattan.

>> ♪ >> i want to see francine's moves. >> whether we should do the jacuzzi thing? >> a jacuzzi. you run with guy collins. guy johnson into the jacuzzi to celebrate. >> all of us. there you go. the dancing. tomorrow, deal. >> 11:00. i want to see your snoopy dance. >> i would do it tomorrow morning. futures are down. they are putting upwards. a little bit less exciting than the they usually are. it is the 23rd of december.

a lot the book holidays in europe. overall, we are expecting theres to gain after decline last week. gaiam of arrays growth outlook for the u.s. so that will be one of the main focus -- the imf revised the outlook for the u.s. so that will be one of the main focuses. a $450was awarded from tiffany. they decide to sell a watches to gather and that was a dispute. >> apple? a deal with china mobile finally. >> after six years of negotiation. it has finally struck a deal to sell the iphone to china mobile. that means a both companies have a great chance of increasing their profit. they have not raised the price in.

today is the final sendoff of the deal for the will it move ishares? that is not for certain. >> and 24 hours, francine's dance. see you in about 30 minutes time. i am guessing you are doing apple. >> i look at apple and the response. thatology and dialogue it's a bit divided. , the biggest apple customer. they could get a bit of a pop at last. iphones will be sold by china mobile. >> a lot has been made of by the fact that they have sony subscribers, hundreds of millions. not that many can afford the high-end. >> when you think about it. how many of them can really

--ord about temperature $750? ended u.k., you get a lot of subsidies when you buy your iphone. -- the network helps to subsidize it. not so much in china. really about 100 million people are likely to afford. morgan stanley said to look for 12 million iphone sales next year. an increasing because of the deal with china mobile. that is about eight percent up on 2012 sales. overall, it is sort of the final hurdle, piece of the puzzle of how. after losing market share. >> 5%, 6%? >> the biggest provider of handsets in china. it is going to be doing well. apple is moving into its

territory as well stop -- as well. paid $450 million by tiffany. they have been embroiled in a legal battle because u.s. jeweler was said activity -- said tiffany and it was supposed to sell watches and that with to share the profits. it was said tiffany did not help much in growing the business. overall, they get $450 million. that is bigger than the annual profit. >> i look at the profit last year. that is eating up the whole profit. >> it really does. >> 10 years. close eye the luxury sector in general. lvmh. product missed eight percent

growth from its previous -- prada missed eight percent growth from his previous stop offsetnot managing to the increase. >> what is carney moaning about? >> he said abu baton is too extreme. >> his a gripe or. -- he is a gripe or. -- griper. he has diamond teeth. >> he spent a lot of his wife to be. our next guest is bullish. ♪

>> welcome back to "countdown." i am mark barton. a bullishuest has outlook for technology and banking sectors. chief marketing analyst joins us from the dublin office. thank you for joining us. are you in a bullish movement ahead of 2014? good morning. yes, we are quite a bullish for 2014. rally wese start of have seen. we think next year will be another upside of the s and p. we are looking at the top side for the s&p. inthe same time it, money

fixed income is nearly 1.4 trillion which is part of the sidelines. we think a small hick up would bring the money back in the market. -- apple and facebook. facebook has doubled. apple has not had such a good year. it has good news overnight to stop it reaches the iphone deal with china mobile. if we look slightly back at apple for the third quarter, there've reported $30 million on revenue. a lot higher than they reported in 2012. in terms of apple, a deal with china mobile is a plus. the stock has a lot more potential to go to the upside. in addition to that, it also

introduced a 7. honda, all of these cars will have systems which will pair up with your iphone. that is going to be a another good thing for apple. another point i wanted to make is that they have acquired this gaming company and they think apple will embark in the gaming industry as well. momentum.book, great the company does not have any type of debt on their balance sheet. .1.5 billion sitting we think there will be more consolidation and more acquisitions going forward in 2014. the company will build report a lot higher earnings. thank you. chief marketing analyst at capital markets joining us from a dublin. " is next.ve

swatch is receiving $450 million from tiffany. see you tomorrow, nice and early. have a good day. ♪ . .

>> welcome to "on the move." i am francine lacqua at bloomberg european headquarters in london. we are moments away from the start of european trading and our markets team has everything covered. ,ere with me now, caroline hyde and joining us from berlin, david tweed. caroline, you are watching apple. arm.ep an eye on they might just get a little bit of a rise. the final piece of the puzzle for apple. they are going to be sold by china mobile, the biggest

network divider in the whole of china. about three quarters of a billion in terms of population. not all of them can't for the very expensive iphone. >> after six years of negotiations, finally they have struck a deal. david, what are you watching? >> i am watching swatch. they could get an absolute boost. they have just been rewarded by the netherlands arbitration court a payment of up to half $1 billion. a huge amount of money from tiffany over a breach of contract. i will explain just what went wrong with their joint venture. >> thank you so much. we will see if swatch is rising as much as some investors are thinking it will. very low volumes. two days before christmas. raising expectations for the u.s. these futures, and a moment, these stocks will open higher. >> many are just focusing on the

christmas holiday yet to come. it is all positive sentiment. reddit agricole -- credit geithner: saying that third quarter gdp numbers for the united states being revised higher and saying that it sets them up for a positive tone to the end of the year. stocks rising across the board. what a week we had last week. >> quite a week. today, we have quite a lot of corporate news. apple, swatch, tiffany. what are we watching today? >> you're keeping an eye on premier foods. they could be selling some shares. keep an eye on equity markets. we are likely to see gains throughout the whole of europe. let's look at the rise regionally speaking. .25%.se 100 up similar moves seen in france. cents --p point seven .7%.

germany saying they have a positive tone for risk assets into the year-end. even though they have the imminent onset of tapering, easing back on stimulus by some $10 billion starting next month. overall, we are seeing risk appetite out there. the imf is bullish on u.s. growth and it is being backed up at the data. 4% ondp outperforming, up an annualized rate. it is all about consumer spending. look at how they are doing in europe today. last week, we had the biggest weekly jump on the stoxx 600 since april. up almost 4%. on the health care downside, a but remember, that is an asset class that you get into when you are a little bit fearful. technology higher. that has got to be down to apple. let's dig into those particular names. i want to keep an eye on arm, a

big provider to apple. keep an eye on dialogue technologies as well. that is over in germany. it gets 70% of its revenue from germany -- from apple. apple will now be sold through china mobile, the biggest network provider in china. they could be adding about 12 million iphone sales next year, according to morgan stanley. swatch is up 17%. david tweed will talk on that story. tiffany and swatch have been embroiled in a legal battle. swatch claimed that tiffany was not helping with its joint venture enough, not enough growth of development and sales under the tiffany brand. now they are rewarded 400 million swiss francs. that was bigger than tiffany's entire profit last year. that news for tiffany, good news for swatch. the mere foods down by four percent this morning. reporting thats

they may announce a 300 million talent -- 300 million pound selling of shares, all in an attempt to cut their debt. >> thank you for the latest on the market movers. let's have a look at what we can expect in 2014. the chief investment officer at ccla investment management. is there too much optimism? >> we need to get caught up in all of the good news. realistically, fundamentals are very strong. companies are saying all the right things. what might go wrong? number one, the united states. moving at a rate that is consistent with the fed taking some money away, but still delivering growth. if we get too much growth, we may see the fed acting more aggressively and raising interest rates ahead of expectations. that would be calamitous for markets. me what is going

on at the federal reserve, they have been buying $85 billion per month. they are going down to $75 billion per month. at his nonsense. they were buying $94 billion per month for the first half of last year. jumps in liquidity in the global marketplace is huge. there is a clear intent to begin to take it away. moment, the markets are clearly understanding that the beginning of tapering does not mean tightening. >> absolutely. if the economy continues to move ahead, the federal reserve will have to say this is not just an issue of less support. at what point do we normalize interest rates? we are low interest rate junkies. we have never actually solved the fundamental debt problem that took us to the edge of the abyss in the first place. if companies get their teeth behind this recovery and begin to invest, that is bad news for

earnings per share. we begin to see companies build up excess capital. that is what we have to worry about. as well as a reduction in competitive positioning. >> we had a rally in 2013. could 2014, even if companies continue to do the right wing, will shares be up next year? >> my prediction is the s&p was up to 1950. we might see material less growth from china. we want long-term, sustainable growth. i suspect that china's authorities will be aggressive in the near-term to cement a much more solid platform of growth for the long-term. that could be bad news. >> a concern about a credit crunch in china? >> if you look at the international lending figures, very hard to reconcile with -- what china says is going on. china says it borrows in aggregate. that does not add up to the

politics in europe, the european central bank will do anything other than support recovery. is european central bank desperate. the bundesbank is going to run out of cash next year. euro isquickly, the shooting up. will they have to do qe? a realink there is probability that they will. i think the euro economy is way too weak. the periphery, which had all of the benefits, sentiment you might want to rely on. >> james bevan, we will be back with james shortly talking about emerging markets and industry groups. here is a look at what else is coming up on "on the move." apple and china mobile team up finally. that is the deal. what does it mean for the mobile sector, next week after 10 years behind bars, he will campaign for the political prisoners. and he says online gambling is like cancer. we will hear from the world's

12th richest man. we will be right back.

>> i am francine lacqua in london. this is "on the move." television, radio,

and streaming on your tablet and phone. arm holdings is one of the suppliers to apple. this is our biggest corporate story of the day. after six years of negotiations, apple striking a deal to sell the iphone through china mobile. companies andh ability to reach 1.2 billion chinese subscribers. some people are saying that, because we have been talking about it for the last six months , everything may be already priced in. not so for arm holdings at the moment. for more on the details of the deal, let's get to our european business correspondent, caroline high. this has been a long time coming. >> six years of haggling and at the, china mobile is biggest provider. its customer base is more than double the entire population of the united states. it will at last be selling iphone 5.

5s models 5c and will be on offer. late to the party, aren't they? iphones have been available in china since 2000 nine, but only by the second-biggest carrier. got in on the deal in 2012. six years of haggling and finally, china mobile will be selling iphones. perhaps it took so long because apple was reticent to get involved in the homegrown 3g and 4g networks that china provides. wantedelecom wanted -- far more benefit sharing from selling the devices. no details of the financials of this deal. >> what sort of sales growth are we likely to see? >> morgan stanley says it could add 12 million iphones to sales in 2014 for apple. upt is about eight percent

on the iphones that were sold in 2012. so a nice, big win. maybe not the entirety of china mobile's customer base. about three quarters of a billion people are currently linked up to china mobile. remember, these are very expensive phones. on average, it would cost you as much as $700 per phone. there are not as many subsidies and you will not get as many discounts. it is just the high-end buyers. that is what china mobile and apple want to see. they want to see a boost in sales. only thement, apple is fifth biggest handset maker in china. they only have six percent of the market. it wants to scale that up and get ahead of samsung. facing aile also slowdown. in fact, it could see its first profit drop in more than a decade and it has been investing in its 3g and 4g.

one of the main reasons china mobile is in the position it is today is because of the growing revenue. it has been waiting for the iphone deal. so much.you we are back with james bevan. this point to a friend for apple? it has had a rough ride. this gives it an extra boost, access to a huge piece of the market. the worry that this is issue of traveling rising. what happens with apples global business model, many people say that it will replicate in china the market share it gained in the states. isthe states, the unit price $200. it will be $700 in china. i expect that we will see far less real sales and margin maintenance in this book up -- h

ookup than many analysts predicted. or moldings, for example, the opportunity to derive benefits without worrying too much about the margins of sales, are much more relevant. >> once you seal the deal, the rest can be tinkered. is this not apple coming into the market and seeing what it is like? >> the share price is predicated on an expectation that apple will not only get volumes, but volumes and current pricing. it is a really dangerous issue. when apple comes to the table to report sales, it will only achieve volume if it discounts the price. what is happening, the overhyped of apple? >> the last three months is when the share price has moved the most. actually, the last quarter. the last quarter tells me there has been an awful lot of optimism with people factoring in opportunities in china. i think that the sales opportunity will only be

achieved as a reduction of price and profitability. these iposat all of and they do not actually make money. difficult to believe in models where there is no clear revenue screen. google, fantastic company, amazon likewise. i would look at some of the emerging ones, a first-class technology company ready to gobble up. margins and profits in other economies. hcl, indian company, about to become more substantial in european sales. it is the next leg of the bull market. 2014 will be the year it makes real progress. >> and you also like s.a.p. well positioned and high maintenance margins. what i look for in technology companies, solid current sales. prayer, hopes

tomorrow. >> i love the way you put it. that is another big corporate we are watching this morning. swatch and tiffany. 's tiffany will have to pay swatch after losing a breach of contract suit. david, what are the details of the case? >> this relates to a joint venture that was set up a swatch and tiffany. the idea was that they would develop a manufacturer of watches by swatch that would be sold under the tiffany's brand. alleged thatch tiffany was blocking the development of this business. what we have now is the results of this. the netherlands arbitration panel has decided that tiffany's million swatch a $449 as reparations.

it is quite a lot of money. surprised to see that we are not seeing a bigger jump in the swatch share price. it is up around .5%. >> that is a little bit surprising. in central europe, a lot of people are on holiday. half $1 billion, quite a significant blow for tiffany's. >> looking at the share price, it might reflect the fact that this case is not open. ceo says they are shocked and extremely disappointed by that decision and that they are reviewing their options. they are talking to legal counsel. maybe this is not dead yet. maybe it is not time to start counting your pennies. tiffany's has said that it will have to take charge of as much as $305 million. its earnings will be diluted.

it says its earnings will be diluted by as much as $2.35. in november, they had guidance of $3.75. it is a huge hit. the total is more than their net income last year. it is a big hit for tiffany's. i wonder what sort of reaction we will get to those shares in new york later today. >> thank you so much. .till with me, james bevan what do you make of the luxury sector in 2014? is going to be that china draghi because there is left get -- let's gifting. >> absolutely. central london property prices, we know that they are highly leveraged. who is going to be a good play on that? i have to say baron sutherland. 60% of their earnings will come from central london. less than 10 times earnings. i think they have some share

price upside. we see the bank of england in the u.k. no government or fiscal impasse. that is where i see significant opportunity. company that may not be described as a classic luxury goods company, but it it has leveraged the cycle. >> thank you so much for all of that. happy holidays. coming up, the airline industry is set for skyhigh income next year. what to expect when you take flight in 2014. details next. ♪

some 2013 served up unusual concept cars and attempted to push luxury to new heights. paul allen takes a look at some of the industry's latest creations. >> is it a car or is it a tv? toyota's futuristic car certainly takes the prize for 2013 in the reliably odd concept car technology. honorable mention goes to the car owners who only ever wanted a tiny bus. the latest automaker made a hydrogen car. >> the difference between a hydrogen fuel-cell vehicle and a

conventional vehicle is that the hydrogen fuel-cell vehicle generates electricity onboard. , but 13 yearsa into the 21st century, an idea still somehow absent from the roads. bugati unveiled its new creation in dubai. only three are available for sale at $2.28 million each. >> it is the second-largest market in the world. always a pleasure to be here in dubai. >> rolls-royce also chose to buy to show off its phantom. encrusted with 400 diamonds. emerging markets are trading up to cars and picking up some inadvisable packing techniques on the way. while manufacturers of bulletproof cars are finding a market in pakistan's notoriously exciting southern city of karachi.

>> my family is also here. >> on the subject of safety, ford showcased its collision avoidance technology in belgium in october. the car will take over steering and braking if he does not detect the driver doing the job. -- lessects this resistance to this idea than self driving cars. >> that was the year in review for cars. what about flight? our aviation reporter is here with the latest. what are some of the trends we found in 2013? >> one of the biggest themes was the rise of the middle eastern carriers and their dominance. showing one world, the alliance with iberia. a tremendous number of planes. in the running for buying a stake in al italia. that is one group of airlines

that will play in enormous role. and of course, the low-cost carriers. they have been pushing forward in 2013 and they will play a big role in 2014 as well. low costs?ut the >> in terms of the low-cost, probably the most interesting will be in europe. you saw some big orders at the beginning of the year with easyjet and ryanair. they ordered about 300 planes. 2015,are not coming until but they will be solidifying their position. one of the things we are going to be seeing is a softer, friendlier rider. that would be something quite fun for customers to see what it , insteado go on a ride of being confrontational, a friendlier product. >> a little more luxurious maybe. >> i do not know if it will be luxury, but they will be letting you take some duty-free onboard if you fancy that.

>> thank you so much. coming up, after 10 years behind bars, mikhail khodorkovsky said he will campaign for prisoners. we are live with the latest next. ♪

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welcome back to "on the move." i'm francine lacqua european headquarters of bloomberg in london. tycoon michael he will focussays on freeing political prisoners. he is in germany after being released from 10 years in russian prison. director christine lagarde credited the budget

deal in washington with the first plan to improve conditions after tapering. the world's richest lottery fadeout to .50 in euros. gordoop prize known as el 400,000 euros per ticket. that's cap khodorkovsky back to the latest on khodorkovsky. >> francine, what an extraordinary weekend for michael khodorkovsky talking to the press for the first time as a freeman in more than a decade. just 36 hours after walking out of prison, russia's most famous before that, flying in here. now the country's most famous dissident in exile in berlin. he was greeted at this press

conference like a rock star. they had to hold back the start of it he cause there were fights breaking out between the cameramen who were jockeying for position. absolute pandemonium in the room. you'd expect him to come up fighting? quite the opposite. he says he was a challenge putin, -- he says he will not challenge president vladimir putin. support any political opposition. >> to the question of sochi. it is a celebration of sport. something which millions of people celebrate that should not be damaged by a boycott. obviously, the event should not become a great party for president vladimir putin. >> keep in mind, the 41 into prison he resources richest man

with an estimated $13 billion at the helm of the world's fourth- largest oil company worth about 36 alien. i asked him yesterday what he would advise people looking at russia in terms of hi its investment case. he laughed and said. for bit i should give advice. he did say that he hopes his release is one step in improving russia's investment climate. 30 measured comments from mikhail khodorkovsky. >> you have been covering russia for the last two decades. having are the last words from khodorkovsky? >> i do think we have heard the last word. he said he wanted to spend time with his family and there is a lot of that to be done. he has been away for a decade. he got his hands on his first ipad. he was consumed by that very it he saw his four-year-old grandchild for the first time. .s mother is ill here

you don't tell journalists several times yesterday that he needs more time to think about his future. keep in mind, even though he's a free man, he is a bit of a hostage. several of his coworkers are still in prison and i think also in respect to german diplomacy which helped win his freedom, i think we're going to hear very measured statements from him for the foreseeable future. wraps after his friends get out he becomeserhaps as more emboldened, we might hear a haps more critical and perf as he adopts to his new role. >> the japanese yen will continue weakening against the dollar in 2014.

what is your boldest call for 2014? the bank of japan has anticipated they will come up with more easing. it would be bold to say that the japanese central bank aside that the central reserve is one of the most dovish central banks out there. we're not going to get a hike in that funds rate. it is a long. of time. after talking about tapering, we should look at it from a different angle rate we're going to have cute e3, but the federal will hold on and 2014, maybe even longer. have a verys we dovish central bank in the u.s.. that means that the u.s. dollar will again be quite a weak currency for the duration of 2014. that is something which will have disappointed the market consensus.

that just hasn't happened. we have to be very patient waiting for the dollar to turn the corner in 2014. >> it will really disappoint mario draghi. may have to start fighting on the euro front to get lower. what we see now in terms of the euro dollar, it has come off a peak since tapering last week. >> this is a very strong rate for the euro dollar. we have a weak economic recovery in the euro zone had a much weaker euro which helped it. the way the market is viewing draghi now is as a weekend. the fed has a strong hand, draghi has a weekend. it would really help europe if the dollar were to slump. rise.

that isoes look like happening. the market doesn't really believe that even if you were to cut interest rates to negative, that would have a big impact. -- again,ably will be the market doesn't view him as having a strong hand. theink they're waiting for dollar to strengthen. really what draghi needs more than anything is that. >> in 2014, you will have a huge ecb andy between the the bank of japan doing everything to keep monetary policy loose. >> the fed have been so dovish. where the bank of japan stepping up qed, the fed doing less but still doing it and perhaps the

most dovish bank of england is a central bank of new zealand. get to the end of 2014 it becomes easy to see which of the central banks can hike next. orl it be sweden, norway even canada? canada has become much more dovish. much of the data has not been that bad. perhaps the market has got to variations of the canadian dollar. by the end of next year could be turning. >> what about the bank of england? that we have had unemployment come down to 7.4%. we know forward guidance as we get to seven percent it will stop thinking about the. hike. i don't think the rest

of the economy outside the housing market is strong enough. i think they won't be hiking until 2015. again, i think the pound will remain pretty well supported. the ecb are going to stay dovish as well as the fed. it has pretty good data for the last two quarters. there's a lot of news in the price. long the data remains good, there will be support for the sterling, at least for the next few months, at least until perhaps we get a change in that forward guidance. the bank are going to have to keep on working to push against those expectations at the hike could come sooner. >> jane, thank you so much. another exciting year for exchange markets. we will hear from gambling's richest man and wife thinks online gambling could kill casinos. stay with us, we are "on the move."

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>> first, bloomberg. >> i'm francine lacqua in london. this is "on the move." we are streaming live online, on your

phone and tablet. number one inks the u.s. and canada this weekend again. "anchorman two" opened with almost $27 million according to the box office. hyundai motors is expecting to sell 7.5 million cars this year. ford has said the new s series will the shown at next month's he tried auto show. "the pulse" is coming up in 15 minutes from now. cohost guy johnson is here.

we would talk about what 2014 is going to feel like and it has a party theme to it. he says we will be partying like it's 1999. really? we're not talking about prince there were talking about the fact that it is going to be a very u.s. centric world next year from an economic one of you. it ando won't be doing neither will the emerging markets. let's talk a little bit about the gadget story. we're not talk about the gadgets for christmas, we're talking about some of the surprises that will be generated this year and going into 2014. what is going to be interesting. and gadgets european editor will the nokia leumi iphones have been one of the ofprise success stories

2013. the fact that microsoft has made windows work on the tablet is a big breakthrough. it will be doing that as well. again, what have we got for you later on? this is the likes of oxford street and regent street. the company that is been putting that up since those stories for started around 50 years ago. we'll be talking about the illuminating innovations that have been generated over the last couple of years. >> i love christmas lights. who doesn't love christmas lights? especially if differently to the environment. >> apparently, the guys who put them up work on them all year and by the time they come to christmas they are sick of it. >> i still enjoy looking at them. that is the secret to having a .appy christmas light enjoyment guy, thank you so much. coming up on "the pulse" 15 minutes from now.

he may adelson says build individual resorts in major european cities just days after aborting a plan for 35 billion dollar mega-resort in spain. adelson will be speaking to a in tel aviv.r sto so, he has not been put off by europe? >> he has the likes of evenlona, milan, rome athens on his map. he's thinking about a more modest single integrated results in each of these places. little bit of a come down from that mega-$35 billion project in spain. >> this will be the largest real estate developer never undertaken on a commercial basis. anyn't -- neither can company -- did that kind of money.

come a newer signing government could come into power and change everything that is part of the agreement. so i needed some sort of indemnification and this is something that, you know you do a project was companies will take a chance that if you sign a 10 year project, most governments will go up to. of time. period of time. i needed an assurance that some government in the future will be discouraged from coming along. also, because of the european union rules, we needed a preapproval from the european union. now, the eu does not have a process for getting preapproval so we ran into two things. one, where governments were not

used to providing guarantees our indemnification they will provide incentives and grants but they are not used to providing a guarantee that a future government won't upset that are turned over. i couldn't take the chance of $35 billion over a 10 year. that the government won't come back and change their mind the day after i signed the agreement. somewhere looking else within europe? >> i am looking at a different like or doing singapore japan like or career like individual locations insmed individual cities. >> it could be an adelson casino resort coming to a city near you before long. he did mention london. ? >> not yet. he makes most of his money from

mccarron fat. he is looking elsewhere in that region. >> right now looks like japan, korea, possibly vietnam and possibly taiwan. -- each willow allow the establishment of integrated resorts. me busydo, that'll keep for the next five or 10 years. >> if that doesn't keep him busy enough, francine, he says he might pop in to give a lecture or two at the adelson school of entrepreneurship, which is why he was in israel over the weekend. mr. adelson is the world's 12th richest man. coming up next.

more on the price of luxury, next. ♪

>> welcome back "on the move." to i'm francine lacqua here london.

luxury furniture maker in italy makes posh interiors for top range cars. we took an exclusive tour. i am chairman of the business that is called interiors in motion. [indiscernible] our main client, and we're proud of this, is still for ari. that is part of our story, but in recent years the real growth of other important brands, not on the italian brands. so in addition to for ari we , faulk wagon, jaguar.

i think our strength is a possibility to be able to make a .ransfer from what we have from thele to move home front to the interior of cars. the other i would mention is all the things we call customization. a customer came to us and wanted that shehe same color had in the boot. the wife of this customer wanted to match the interiors. leather is a natural material and that creates and an additional level. the test ofantee

quality. >> horst you have to love those boots to match them terrible car. car.tch them to a whole profits below estimates, european business correspondent caroline hyde joins us. caroline, too expensive even for kanye west. known fort exactly his frugality, isn't he? manner had entire row of his bottom teeth replaced with diamonds and gold. apart from the ring, he hired out the entire at&t baseball park, or 50 piece orchestra,

fireworks and please marry me put on the scoreboard. he said on a u.s. radio show that he has a bit of beef when it comes to louis vuitton. apparently he wants all his fans to boycott. he has a bit of dried issue with them. it is highlighting a trend. vuitton are trying to achieve what hermes and dior are achieving. they're much more high-end. >> it depends on how the customers it used to buy you react to that. vuittone moment louis bags are up.

it looks as though prada sales are not as high as expect it. profitexpected. >> caroline, thank you. stay with bloomberg tv. guy johnson i are back in "the pulse." . .

>> apple connects with china mobile. they finally strike a deal to get 1.2 billion subscribers access to the iphone. >> the amnesty continues as putin releases one of pussy ri ot's members. mikhail khodorkovsky says he will work to get other risen out of jail. >> and an exclusive interview with the las vegas sands billionaire. he talks about the future and why he is not lacing his bets online. online.ng his bets