difficult experiences. take a listen. >> may be the most difficult day was when i saw them starting to control the company, or maybe the most difficult day was when i learned the company's council had died, or maybe the toughest was when i got knifed in the face. >> we will have plenty more from that interview throughout the show, but now let's go to corporate news. you have news from google. >> italy is going to be shut for trading, but parliament has an busy. they first want to put in a measure against web advertising unless you're in the country. it is trying to cut down on so basicallyhoo!,

it prevents taxable profits from being shifted offshore to the luxembourg, but it doesn't look like it is going to be compliant, but it does seem to be forcing the oecd's hand. many countries want to force them. how can they get back the money they are losing in tax dollars? >> this is one of the big stories of the day. this will have big repercussions for a lot of the companies around the world. gdp update. that's what we had. confirmationt was that in the third quarter the french gdp actually shrank 0.1% quarter on quarter. the question is will france head to a triple dip recession? it might not because we had some

good numbers out today. an increase in november of 1.4%. that was much more than the 0.3% increase we forecast. analysts said watch out for consumer stocks as they open today. speaking of consumer stocks, i will be back in a little bit with the story about german retailers and how they are the u.k. with mince pies. >> i love that story. thank you so much. go to tel aviv. you are watching news out of turkey. this is physically blackrock buying turkey shares. >> blackrock the biggest money manager and turkey shares sold after a corruption investigation led to almost 50 arrests in turkey, including the sons of cabinet ministers, the mayor, and leading business executives,

raising the prospect of a power struggle between the prime and someone based in the united states who has a lot of influence. shares fell by about 10% last month, but blackrock taking of you that when investors are fearful that is the time to be brave. that is the time to say blackrock has been topping up its holdings in turkey. >> caroline, we have a little corporate news. today are very light. a lot of european indices are actually closed, but we have had a pretty good rally in europe. >> we have. keep an eye on asia because that is where we see a divergence in policy. it is a story of reining back stimulus. we are seeing stocks climbing higher in asia. let's have another look at what is going to be a rather sedate

day. the rise and fall of many. the u.k. is barely changed at all as of this morning, everyone just keeping calm ahead of the early close. we have france tentatively up. italy shut overall. let take a look at what asia did over the course of the trading session, because we did see gains across the nikkei, up about two/10 of a percent. the hang seng up more than one percent. why? it is being driven by chinese stimulus. we saw the asian central bank use the cash crunch. the bank tumbling the most in almost three years as they try to inject funds. japan economic report, no mention of deflation for the first time in more than four

years. remember it is about trying to get the two percent inflation target. if we look at the effect it is having on currencies, let's look at a market. the dollar is currently climbing against the yen. if the yen weakens, it will come into full force in 2013. it is the story of dollar strength as well as we anticipate reining back of stimulus. you can see the dollar higher against the euro, and a quick check in on bond yields. treasuries are now at their cheapest versus stocks and more than three and a half years. at 2.93%.urrently >> the very latest on the markets. a lot of people are concentrating on christmas, but we have to talk about the markets.

takee year wraps up, let's a look at the future for a preview of 2014. let's welcome the portfolio manager. great to have you on the program. talk to me about 2014. it is going to be the year of the virgins between the fed and the bank of japan. it cannot last forever. i think the markets in western europe have some way to continue atlong as 10 year yield stay a certain level. it is possible. within asia and the emerging markets seems to be more of a challenge. today we had the people's bank of china intervening. is a structural problem in

china. it might not be an end of the year problem, and we might see it continue to unfold. year14 is going to be the we see a lot of u.s. strengths. is there a concern this is going to disappoint the forecasts? >> if you look at the data and the predictions, it's very hard to see -- the weakness, if we have some government problem and -- wehave ellis e problem have a policy problem, the economy looks pretty strong. peoples in fact a lot of are not trying to work again because they will just retire. all in all, the picture of the economy is pretty good. >> stay with us. we will be talking about

industry groups as well. here is a look at what is coming up. we speak more to the oil tycoon. more on that next.

>> this is "on the move." to our interview

with the x oil tycoon. we sat down with the russian dissident for one of his first interviews after being released from reason. once russia's richest man, his was a boon for the country as they wrestled back control of the oil industry. >> describe your most difficult day in prison. around 4000 difficult days. to say which was the most difficult of them is pretty tough. maybe the most difficult was when i saw them starting to , or maybee company the most difficult day was when i learned the company's legal counsel had died. day was the toughest

when i got knifed in the face. it's difficult to choose. >> what was most difficult thing about risen? -- about prison? >> the most unpleasant was the sense of wasting time senselessly. clothes, being in an enclosed space. that is stuff you can get used to if you have self-discipline. i spent all those years in prison under so-called double surveillance. >> in a prison within a prison? >> yes, and a third risen -- prison within that. the first level is where you are a prisoner like everybody else. therecond level is when

is a camera trained on your workstation, your bed, your table. the third level of security, just to give you an example, is when there are at least four other prisoners reporting back to the authorities on your every ove. >> because president clinton was personally interested in how you ?re treated >> of course. >> the holidays are ahead of us. what would you like for christmas? >> i really hope i will get the present i am waiting for when i see my wife. where's move to italy, parliament passed measures on the google techs. the law requires businesses to purchase internet ad from locally registered units rather than tax havens. caroline is here with the

atest. this is a pretty bold move. >> it is, and jumping the gun. italy's government passing this ,ew measure on web advertising meaning you can only buy it from a locally registered company. the company has to be registered in italy. it is to prevent the shifting of taxable profits. in havens the likes of ireland, luxembourg, bermuda. really the crackdown is on companies we know well. all of them know to shift , but italiants companies are being forced to only buy their advertising from locally registered companies. >> this law is not the .ontroversy >> all the lawyers are saying this probably violates eu laws,

but it is something countries are wanting to clamp down on because of the sheer volume of money they could the making. at the moment europe and the tax loses $100 billion on by these companies shifting around to so-called havens. approve aey did blueprint to fight these strategies used by internet giants the likes of starbucks. they are only still in the making. they are trying to force the . at thespeed things up moment the oecd plan is not likely to be finished by 2015, but by trying to force the issue maybe we will get there a little quicker. >> how much is google actually saving by shifting profits? >> europe and the u.s. using 100 ilion dollars. last year alone $2 billion is

what they managed to carve off their income tax by claiming they sell advertising from ireland, so they are not selling you your advertising. they're not selling it to an italian company in italy. they are selling it to an irish unit, and that pays royalty to a unit headquartered in bermuda, so that is how they are managing to suppress the overall tax bill. certainly that is what countries like italy want to clamp down on. >> the latest on the google tax in italy. with us is the manager. this tax touches advertising. it also touches these big american companies. do you like technology stocks? >> you can get carried away too much, but within technology stocks you have some companies with earnings, but i think this

is interesting news. it is difficult for a country to tackle this kind of thing. it has to be done at the european level, and it will be very difficult. the only example of a country , andg to push an agenda they say they will do it no matter, risking their own financial industry in the theyss, and by doing that have got some traction, and we today theeurope project is having problems, but it is possible. if they are able to push through and convince the other partners, ireland will probably be against it as well. it might work, but i think it is going to be a long process. >> of this good -- is this going to be for 2014, or will it take longer?

data in europe. in a way, those companies are a bit like banks. people don't like their data to be shared, and they want the company to repay the community in order for them to pay taxes. all we know is they are a retail company. people are using it every day. incentive fore an them to be more transparent and to voluntarily pay tax. >> talk a little bit about your portfolio. lace?s your favorite >> right now it is pretty high. >> even in europe?

>> yes. >> you have to look sector by sector why they didn't do so well. there is one sector that did terribly this year. it is the big oil company. prediction is down for three years in a row. explodedt invested with no expanding tax lows. therefore, companies have a pretty good ratio and a pretty good dividend yield. as long as they still bode well we expect predictions to increase in cash flow to increase much more. are quitepectations low we could have a big surprise likehe likes of shares portugal for example. >> very interesting. i wish you happy holidays and a great 2014.

coming up, call it a bitcoin the currencyat can by you this christmas season? stayight be surprised. with us. we are "on the move."

>> welcome back. matt miller has been examining how to spend bitcoins. is christmasnture

cheer. take a look at what is bitcoin bought him in the streets of manhattan. you take bitcoin? >> yes, we do. >> why? let's this is the second year we have taken it. we accepted because i got into bitcoin in early 2010. >> this is a douglas for, which is lasix and since then the .raser for -- less expensive >> it is 12 feet and a few inches. >> this is the freeway we decided on. the 12 footer may be a pain. let me just scan that. got that. scanning transaction.

now mine says received. .08 there we go. >> that is cute. staying with the christmas spirit, u.k. shoppers hunt for their holiday dinners. in, ourme from early european editor -- from berlin, our european editor david tweed. a story about mince pies, because it is a mince pies strategy they seem to be following. did a survey of the best mint pies. this time around the number one mince pie in the united kingdom comes from lidl, a german retailer. sixone pound 79 you can buy

mince pies. i want to compare this with for no man masons -- fortnum and masons. they are selling for nearly 13 pounds. you might think this is a freak, can't possibly pushing these mince pies, but this is a strategy. it is a strategy of going after the more well-heeled retailers. it aims to be paying off, because if you look at what has inpened in the retail area the united kingdom, 12 weeks up until december 9, the four big retailers -- saint barry poss test goes, -- st. mary's -- sainsbury's, asda. waitroseheat rose --

getting round there. it seems to be working. >> they have been in germany for years, these retailers. tell us about the owners. they are going in there is. billionaires. >> we are talking about the richest and second richest man in germany. we have 8000 stores worldwide. these brothers took over in 1946 with their strategy of putting in boxes. you go to the retailers and server self from boxes. smarts't want to call it market, so he decided to call the chain lidl. >> thank you so much. we will have plenty more from david tweed throughout the day.

as we had to break, remember the backstreet boys hit? everybody -- i am not going to sing it. there have been big changes. backstreet is back after the break. .

>> welcome back to "on the move." i'm francine lacqua at bloomberg's european headquarters here in london. here are today's top stories. u.s. president obama has extended the deadline to sign up for health insurance under his affordable care act. the program has been plagued with problems since its rollout. many of the issues have been solved. when thousands rushed the site, the government pushed the deadline until midnight tonight. the man who ineventsed the most powerful assault rifle in the world has died.

he began imagining the a.k.-47 in 1941 when recovering from wounds after the german invasion of the soviet union. blackrock says it has been buying up turkish stocks over the past few days. political turmoil in turkey has been driving share prices down. sale id it has made the of shares more compelling. it dares to be brave when others are fearful. some of these fears could be justified with the recent arrests of businessmen which sent share prices down. >> yeah. we saw shares decline about 10% last month. down about 30% over the year. one reason for this is a wise-ranging corruption investigation which led to

scores of arrests including three sons of cabinet members in the turkish government ands there chief executive of turkey health bank and turkey's construction companies. blackrock having a stake in this both of those companies and adding to its holdings. these arrests led to concern s of a power struggle going on between prime minister and a leading turkish cleric based in the united states has a very large following if turkey and believed to have many followers in the police and judiciary. there is a bit of a power struggle going on there. that is one reason why investors took -- last month. when it comes to emerging markets it does pay to be brave when others are being fearful. a lot of the bad news in turkish

shares has already been priced n. elliott, what about the prime minister's hopes for the presidency in 2015? >> this is all wrapped in with this supposed power struggle that may be going on right now in the background in turkey and has come to the fore. he has been the prime minister for 10 years. his party is extremely popular. it is a well-oiled political machine. he wants to become the first popularly elected president of turkey. really when it comes to turkish politics many people see that the only thing that can stand in his sway this cleric. me suggesting that he is

declaring war on them and orders they show their hand before these elections. he describes the forces as a state within a state. he has referred to ferros in harge of turkey. more in the molet of the founding father. -- mold of the founding father. he has been add ogg to the islamist side of things. there is believed to be a bit of a power struggle going on now. where it is going to end, we certainly don't know. there were allies when it came to purging militant s of the military. it seems the gloves are off on that and of course something that has been spooking investors, but not blackrock. >> thank you so much for all of that.

one of the world's most famous quailent stores is adding egg and smoked salmon served up by brothers. they are offering blankets, live music and performance to those waiting in the cold. let's stay on retail and what the new year could hold for the sector. r next guest thinks discount retailers will continue to grow. brian, great to have you on the program. the three companies basically that you like are either -- they are basically very clever. they position themselves either in good quality but not too expensive or actually all of them are great quality and not

too expensive. on the cheaper side. cheap. >> two of them don't have their e commerce operations. loverts excitable talk about multichannel, only channel in the ecommerce space. they have resisted any temptation to move into significant online operations. at the other end of the spectrum in terms of offerings. >> we all shop differently. primark, you something on the cheap side and you don't really know what you are looking for. you say that t-shirt is two pounds or three pounds and you buy in bulk and buy more than you need to. >> yes. a very different customer basis. aldi, 2013 has finally become

thier year where they have become a middle class staple. it transsends the traditional class now. we expect that to continue in 2014. an tonal an already cut-throat grocery sector. >> how do they do that? marketing? a lot of the campaigns are luxurious and also the mince pies. >> it is witty and -- it is very aggressive. it is not directly comparing it to brand products against major brands. the more store openings. the decor has played into increased -- from frugele shoppers as they look to trim money from their grocery bills.

fantastic year. majors on quality and affordability. >> how does aldi actually compare with lidl? >> a bit of a divergeance in the model. similar business models. what we're seeing is lidl splitting away from the traditional model. becoming more of a discount supermarket. offering more brands and discounts and promotions. >> this is actually the one i was thinking about. it is a lidl promotion which looks very classy. talk to me a little bit about christmas sales. food is doing all right. it is something people focus on. there is that spending for the turkey, for the mince pies. clothing is not doing so great. >> no.

a lot of the m & s stores opened at 6:00 a.m. this morning trying to get some last-minute trade. >> are they on sale? >> 30% discount on lots of clothing at the moment. i think they reached 40% last eek. clothing remains flaccid. that is going to be a challenge, trying to reignite the clothing part of the business, getting women back in the stores. >> what are retailers going to face in the next couple of weeks? discounts? sales? have they better managed it than last year? >> there has been a lot of caution this year. they had left-over inventory.

supermarkets in particular have been cagey on non-food items and gifts. slightly concerned we might start hearing about profit warnings. >> are there retailers you're worried about? >> not so much -- probably heard the last of those really big collapses. there will be more as we head into 2014. what we might be seeing is perhaps a return to consolidation in the sector as ell. certainly even in ecommerce we might see some as well. amazon has been quiet.

2014 could be the year we start seeing amazon spreading its wings across europe and more western european companies and southern and eastern europe as well. >> brian roberts of cantor etail. fulfilling your wildest party desires for the right price. they host parties from around the globe. bloomberg got a plus one for a ehind the scenes look. >> imagine it and we'll deliver it. that is the motto behind one of the world's most prestigious events, penguins in the pool. they have already made that happen. >> we are the ones with the access, the connections and the

tenacity to find it, get it, deliver it. >> caroline is the company's co-founder and prides herself on being able to do the impossiblings including getting pop stars to play at your party. >> as soon as you start bringing in major label artists, it will cost $1 million or more. >> yep. $1 million at a party. sounds extravagant. well, not for everyone. hurley says business is growing and when it comes to hosting parties, people are always trying to outdo their neighbor. >> there is definitely an element of competition. fairly broad. people like to celebrate and in celebrating, it is a statement about who you are and in some cases it is a statement of how much money you have. >> many of the most extravagant

events are not in europe or america, though. the gulf states and central asia take that crown. >> really exciting territory with lots of opportunities both corporately and privately. >> it is all enough to make your ext party feel a bit modest. >> coming up, bloomberg sits with khodorkovsky. the backstreet boys are now hoping to take control of how their music is distributed. ♪

>> i'm francine lacqua in london. this is "on the move" on bloomberg television, stream and n your tablet, phone windows phone as well. backstreet is back. the 1990's boy band had come out with new music and keeping control of their management and pay. caroline hyde joins with us the latest. basically they have changed the way they are making music to take more profit?

>> yeah. blast from the past. 1990's, "i want it that way" when it was storming the charts. they said they were cheated out of millions of dollars. it is backstreet middle aged men and they have now come back a bit wiser. they are using a label services company more like a consultant. you get more bang for your buck. u sign with one of these new providers, b.m.g., they will allow you as the act to keep about 75% of your earnings. it used to be 15% to 20% of your earnings. you have more control. you have to hire your managers band in more control of your marketing but you reap the rewards.. >> it is mazing how the music industry has changed.

it is better for well known artists such as beyonce. >> for the backstreet boys, peter gabriel. they have more money. you're able to foot the costs of your recordings. you don't need the advance from the record company coming your way. it is interesting. even the more established such as prince are able to sign with these labels, it is forcing the hands of universal, warner, sony, they are having to adopt some of these practices. >> beyonce shook up the music world. she released a single without anyone. she released it do itunes. retailers are mad about that. >> they are. we have disruption coming once again from the carter household. of course her husband, jay z managed to go with magna carta and sell it to samsung in an

exclusive deal. his wife goes one step further and sells direct do itunes skipping any sort of marketing in any way. already she sold 430,000 in the first day alone. without any marketing. she didn't forewarn about it. she mixed up the market in that way and mixed up the retailers. they are angry. target is refusing to stock her c.d. the exexclusivity has ended. you can go out and buy it from wherever but not target. they said we should have had it in the physical format at the same time you put it out online. they are banning it. amazon, you can only buy it from them in the mp 3 version. she has gone into wal-mart, which is stocking the c.d.. went in there and offered to pay

$50 to every shopper. all of their first $50 in holiday gifts. there she is making an announcement. that would have been one epic holiday christmas shop i think. >> it is a win-win situation for her. thank you, caroline hyde. now we have been hearing this morning, our extended conversation with mikhail khodorkovsky. he was once russia's richest man. he said president putin pardoned him from the objection of -- >> after you released the head of rosneft, which to a certain tent is exists thanks to the assets, said that he would be happy to give you a job. he was joking. maybe he was actually mocking

you. how does that make you feel? the comments are a joke. because i know right up until the very end he was trying convince the country's leadership not to free me. only because he was personally afraid of something. a man who wants to joke around with an opponent on equal footing and integrity shouldn't use the power of the state to get rid of him. >> b.p. owns 20% of rosneft. some would say that effectively legalized what i guess some would argue is the expropriation

of the assets. how do you feel about that and .p.? >> i agree with the idea. but when you're doing business, you can do anything you want that is not forbidden by the law. what b.p. did is entirely awful. -- lawful. in another matter when it was ethical and when the business should be concerned with ethics. every company and n society has to answer that one for themselves.

>> we're back in just a couple of minutes. ♪

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speaks out.sky bloomberg sits down with the former russian prisoner in one of his first interview since president ruden released him. >> italy takes on google. buying internet ads from locally registered companies. >> travel chaos in the u.k. this christmas eve. extreme weather causes several deaths and severe delays. good morning, everybody. ,"u are watching "the pulse live from bloomberg's european headquarters in london. >> we begin with the