>> giving the germans a hard time. the u.s. treasury secretary, jack lew, pushes berlin to reverse the country's widening trade surplus. >> alan mulally bows out of the race to run microsoft. >> and another big unveiling at the consumer electronics show. sony takes on netflix with its own internet-based tv service. good morning, everybody. you are watching "the pulse." we are live from bloomberg's european headquarters.

i am guy johnson. >> and i am anna edwards. jack lew has pressed the german government to boost domestic demand. for more on what is on the agenda, we are joined by our international correspondent, who is in london today. the dates could not have been any worse. lew is saying you have got to boost domestic demand on the day when we see -- >> import declines in germany. the figures were little bit better than expected. lew is calling out germany, but not by name. yesterday, with france, he said that countries need to spend more to stimulate growth or short-term demand. you can talk about growth, right? the bigger issue is, do you have some sort of financial stability mechanism? do you have a backstop? listen to how he pressed his case for this.

>> we think having backstops is very important. we would like to see more action taken. you have to look at where things were just 1.5 years ago and where things are now. it is very significant progress. >> backstop means one thing, a taxpayer-funded mechanism. that is what the germans do not want. we will see how much friction there is between the two and whether or not it is all happy talk. >> how much do we put on the transatlantic calls to action? u.s. would not appreciate it if european politicians go to america and tell them what to do. they would probably not appreciate the reverse. how do these things go down? >> air was a sense that jack lew had to call for this. when the currency report came out, that was a more formal

way to put that out. got asnt barack obama good as he gets when he was in india and there was all the criticism for the central bank and what they were doing with quantitative easing. the president kept saying, i do not control the central bank. it goes both ways. is it effective? who knows? has the g 20 altered the course of a canonic history? you can argue that april of 2009 was an important g-20. for the most part, these international forums only work in crisis. when there is a crisis, you are glad these people are on speaking terms. >> and they have the relationships and the language. >> thank you very much. sainsbury says it has had its best christmas ever. they beat market estimates with sales gaining over the last quarter. caroline joins us now with more.

the winning streak at sainsbury's has continued. >> 36 straight quarters of like for like sales growing. justin king has done it again. nine years of increasing sales. the stock down just a little bit this morning. like for like sales will just be shy of a one percent increase. that is why we are seeing a bit of profit taking. winners are becoming clear on the u.k. high street. 36 straight quarters. 100,000 turkeys sold over christmas. stan way sx store sold more than one million pounds in one day. that is a record for sainsbury's. in the northeast of london, that particular store. the busiest ever week.

the stock down 30%, the biggest fall in more than two years. a profit warning because they saw promotions eating into their routability. not so at sainsbury's, john lewis. the winners are becoming clear. what will happen for tesco tomorrow? we get numbers and many feel that we could see like for like sales decreasing and we know the reason why, it has been tough on the high street. promotions have been plenty because of these new discounters. youou want to go up market, go to marks & spencer's. sainsbury's seems to have found a sweet spot, slightly more up market. also shopping a lot more at convenience stores, the smaller sainsbury's. around theened

corner from me and saw a 13% increase in the fourth quarter. they are expanding, but it is still tough on the high street. >> i am trying to fit -- to picture what 100,000 turkeys looks like. >> carnage rid >> talk to me about pizzas. >> ironically enough, while we were all eating turkeys, we were ordering pizzas as well from domino's pizza, which did particularly well. they have seen exceptional like for like sales growth. it is all about digital marketing. the activity ramped up, christmas break, everyone taking a little longer off. they also took the second and the third of january off. everyone went wild on pizzas, it would seem. like for like sales up 11% in the u.k. here is the interesting trend across the board. online is now more than two

thirds of their sales. mobile sales up 91%. this is where the trend is going. john lewis said that on christmas day itself, they saw people while the ordering from tablets and smartphones. slightly less good sales in remove, that is as they corporate stores to franchise management. it is all about the pizza and it is all about sainsbury's. ,obile phone pizza ordering whether the pizza actually finds you if you are out and about -- your pizza will soon come with its own ship built in so you can know exactly where it is. of which, more unveiling from the consumer electronics show. sony will test an internet-based paid tv service in the u.s. this year. it will provide on-demand streaming on both tv's and pl

consoles. >> i had a couple of domino's pizza's myself. my wife has her app on her phone. content is king. you have heard the cliché. sony has been using the cliché as well. they are going to put their business model where their mouth is. they are going to have this web- based tv service coming out later this year. they will provide live television, conventional television, linear tv, whatever you want to call it, and they will have on demand services as well. on the plus, sony already has 70 million web-connected devices sitting in people's homes in united aides. so they have the hardware platform. tothe negative, you have got point out that people are already in the space. last year. up 300% investors believe in the netflix story. they are not the only ones. apple will come out with their own smart tv, many people

believe, in the fourth quarter. everybody crowding into this space and there are apps all over the place on these smart tvs. i have one myself. the other issue is content. a good thing about sony is that they produce plenty of content. they are going to have to buy content and that is hard to come by. in many cases, you have to get the rights to the specific shows. in many cases, those have already been purchased by the likes of netflix. says, if youny want to be a good company, you have to be ready for trial and error. >> sometimes at sony, we zigzag our way to great innovation. other times, we fail. do not recognize or remember any of these products. do not despair.

neither does the rest of the world, so it is ok. >> he could have almost put the bravia tv set up there. it has done ok. in spite of by the fact it is rather prevalent in living rooms around the world, sony has lost money on manufacturing televisions. values all about adding to the manufacturing televisions, trying to get into the content space. >> we want to know about the -- that is where your heart is. >> the ultimate faux pas in the after-hours, parties at the tech show. the t-mobile ceo, a bit of a loudmouth in the telephone industry space. he showed up at the at&t party, you might say he crashed it. one of the tech journalists actually took a picture of him and tweeted it. shortly thereafter, the heavies appeared and ushered him out of the room. this guy is very interesting. his last name is ledger, a bit

of a legend because he is always mouthing off about the competition, stirring things up. he has 54,000 followers on twitter. we did ask at&t why they kicked him out of the party. they had no comment. >> he spent quite a lot of time before he was kicked out. >> he says he just wanted to see which was a big star in the united states. did not get to see him. him, but leftth empty-handed. maybe they got a couple of new telephone subscribers. >> thank you. >> he was on the list. >> maybe not, if you are going to get thrown out. we will show you what else is on our radar. executive, alan mulally, says he is not leaving for microsoft did -- leaving for microsoft. he says he will stay with the

automaker through 2014. >> l'oreal will stop selling its garnier brand in china. it marks the first time the company has pulled the event -- a brand out of china since they entered the market in the late 1990s. more than 100 employees will be affected by the move. some americans have just endured the coldest day in decades. temperatures in chicago and detroit were lower than in the south pole as frigid air clamp down on much of the united states. in new york, temperatures scratched a record set all the way back in 1896. thousands of flight and train cancellations. >> still to come, he hottest tech unveiling so far at the consumer electronics show in las vegas. we will review the device is likely to set the trends this year. that is coming up next. ♪

>> welcome back to "the pulse." the electronics world is gathering in las vegas for the consumer electronics show to show off their cutting-edge consumer goods. jon erlichman is there, checking out the latest gizmos, including the next generation of wearable devices. >> you have heard of google glass and the samsung smart watch. we are entering the world of wearables here at the consumer electronics show.

there are lots of wearable devices. i figure, why not wear myself out. this guy here is a photographer with a wearable camera. us if the light has changed or if i have changed my speed and can take pictures. this one measures heart rate variability. it cost $75. what is cool about it is it knows when i am ready to work out. if i did a heavy workout the day before, it will say, hold on a second. wait another day for your big workout. next, this measures fitness and your sleep. button.has an emergency if i fall, it will alert somebody that i am in trouble. we told it to text our producer if i get in some hot water. 5-11-year-olds, it costs

$199. $10 additional two-month dash per month to have calls from this. you can create a gps save zone. if kids go outside of the save zone, you can send them a text and say, where are you? next, this is measuring things like blood flow and even how sweaty i get. it is $200. on my right wrist, i have the fit bug. this costs $50, but then courage you to buy a program to help get you in shape. talk about getting in shape. i am getting a little worn out. i am jon erlichman. >> one of the things that is clearly dominating the ces is wearable sensors, etc.. is is going to win and who going to lose? let's try to figure out some of that stuff. the senior european yet -- editor at engadget. tell, there are

so many. >> and you have to wear them all ofget one in one -- get all them in one gadget. you are going to spend up to $200 on something that does one thing. that is the problem. >> who is going to fix that? >> it is almost like the hardware is there. low-power chips and connectivity. auetooth 4, the ability of small wearable to transmit with very low power. those things are in place. you are waiting on the defining gadget and it is up to developers and companies to discover it. i think intel is the interesting one to look at. >> we are starting with a blank piece of paper here, almost. >> every couple of years, those who are ahead can end up lost. this is intel's chance to shine. it is great that they are building lower power chips.

it showed off perhaps the ugliest gadget, which was its heart of five smart watch. it was hideous tob looku at, very clunky and chunky. t it has the sim building. it is not a companion device. and you put it on your wrist, you do not need anything else in your pocket. that is something i have been waiting for for a long time. necklace, if you do not want to put something on your wrist. intel is proving it is possible. it is not a marketable product just yet. >> the mindset of what we are looking at here has yet to be defined. we are all feeling around in the dark, trying to understand what this low-power technology will be able to achieve. we still do not have an idea yet of its full potential. >> i wish i could answer that. will be the year and we will see some exciting stuff. the one i really liked was the watch for kids, where they can reach their parents in an

emergency and the parents can keep track of them. then you do not need extra functions. the fewer the functions, the better. you do not want to be using it for anything else. some gadgets will be successful, even if they are quite specific. noticed in your notes this morning, sony, we have already talked about them taking on netflix. you think they have had a great show. >> two years ago, sony was a laughingstock. them, justed at spewing out gadgets with no rhyme or reason. no one was ever stopping to check whether any of them were selling. because they have so much money -- it is proving to be a really good influence. one sony has a huge emphasis on mobile. if you look at their purchase of 4k, 4 for streaming and times the resolution of hd, still seen by many as a gimmick,

but not by sony. this ecosystem stops them from being a hardware player. i think the best gadget i have seen from the show this year is a sony smartphone. a phoner version of that i love, a great android phone. it is waterproof and you can watch movies on it in the shower. you could watch netflix. big respect to sony. >> but the other thing that you also noted is the fact that the price point story is going to be very important. what we are now seeing, nova coming through and shopping the knees out. >> you assume that everyone brings their goods to market and that they will all be same-y. especially traditional pcs and laptops and hybrids, which are well-known formats these days. if you look closely, you can see real defenses in price point. has undercut its rival by

up to $200. pro,microsoft surface lenovo has one that is $700 and microsoft is $900. cs are the same. asus,ies like dell, hp, no one is talking about them and they are overpriced. that is a good predictor for at least the next six months of the year. over to you. >> watching films in the shower, he is either taking very long showers are watching very short films. still to come, dennis robbins latest trip to north korea is sparking plenty of negative feedback. it proves that not all publicity is good publicity. ♪

>> let's get straight to jonathan ferro at the touch screen. >> let's look at these equity markets for you. nothing really to set the world on fire. here in london, down .25%. central-bank meetings tomorrow at the ecb, the bank of england, and federal reserve minutes later tonight. if you are into your stocks, here are a couple of companies for you.

sainsbury's delivered, the 36th straight quarter of results. the chief financial officer spoiled the party just a little bit and said, hold your horses, a difficult year ahead. tesco reports tomorrow. that is one to watch as well. i will leave you with this one. the stock up 1%. last year.h of 21% solid growth in 2014. they say they are selling more houses. very much indeed. jonathan ferro with the latest on the markets. >> up next, it sounds like the plot from a national lampoon movie, but it is the real thing in france. some workers think it is a good tactic. why it is happening more, next. >> the oscar nominations are out and "gravity" is leading the pack. nominations are out

and "gravity" is leading the pack. we will take a short break and we will see you in a moment. ♪ . .

>> good morning. you are watching "the pulse" live from bloomberg's european headquarters in london. >> these are the bloomberg top headlines. >> the imf plans to raise its forecast for world growth. that contrasts to the outlook in october when the imf lowered its forecast for 2014. managing director christine lagarde says the fund sees a lot more certainty for the u.s. economy this year. a u.s. air force helicopter has crashed in east england, killing all four crew members. the helicopter crashed during a

training mission on the north coast. an investigation has been launched. ford's chief executive alan mulally says he is not leaving for microsoft. -- he says he will stay with the automaker through 2014. >> let's pick up on that story. hans nichols has more on this. from a ford point of view, great. job done, see you sticking around. this kind of refocuses laserlike attention back onto microsoft. >> it increases the pressure. i caps off has been addressed by ballmer's own admission. they want to have someone in place by 2013. it looks like we slipped to that deadline. mulally is not going to be the person. they had several people turn them down or express they weren't terribly interested. the question is, where do they find a candidate? they go inside. --y bates, ned a lot, a lot,

nadela, elop. elop spent some time at nokia. whoever gets it still has to answer to bill gates and steve ballmer. it is unclear how much the software company is going to actually change. what they do to develop the business model going forward will be an interesting question. our guest earlier was saying to you that temporality businesses can reinvent themselves. you wonder why they are having so much trouble and taking so long. >> they have legacy businesses. they have had a lot of competition between their divisions. accra soft microsoft -- is still sitting on so much cash. era, $20 million in profits. a must. a utility >> a utility, phone company. who is first on the list, bill gates or carlos slim? they are bolstering their bottom line.

there are challenges. are we going to stop using desktop beginners in offices anytime soon? are we going to do everything on mobile devices? no. >> but, this is a business that ultimately some would say needs reorganizing in a way that is more suited to a world that we are moving into. historically microsoft has done fantastically well. it needs a bit of fresh thinking. when this process started everybody said to me, we need an outside candidate. we can carry on in the way that we are thinking at microsoft. >> one, the person has to be of the tech world. two, they have to be outside. >> alan mulally, was he not tech enough? we don't know. mulally,ld have been he didn't get the job so he is ending speculation. until we have great reporting inside -- stuff like that comes out years later.

someone writes a book and we figure it out. hopefully they have a ceo by the time the book comes out. >> you can write the book. thank you, hans nichols. >> to goodyear managers are free after being held hostage by their union workers in france. it sounds pretty dramatic but the so-called boss-napping's are actually not all that rare. caroline hyde joins us now with more on this incident. in what haslatest been a pretty ongoing story. >> you are right. barricade twos to executives into a meeting room. they were allowed water. they were allowed to keep their mobile phones. two days later, the police intervened and they were asked erdon -- exported -- scorted off. goodyear said, we are going to

close down this factory. after five years of talks with the union failed, it sparked demonstrations. they were pretty ok, generally pays full outside the headquarters. later in the year, they turned violent. they wanted 19 police -- wou nded 19 police. the union saying it is not over. there are still going to occupy the plant. the show is only just beginning according to the cgt leader. it seems pretty shocking to those outside france that this happens, but you have been looking into the history and it does actually deliver results. >> it does. it is pretty common. much to the surprise of many abroad, think of maurice taylor of titan international. iny were looking to invest this french plant to try to help save it last year. he got embroiled with the

.ndustry minister of france maurice taylor was saying that the french only work for three hours a day and it came a bit of a hoo-ha. he took to the airwaves in france yesterday saying, this is stupid. this won't do anything. wrong. it does do something in france. of 10 french boss- napping's haven't and 2009. caterpillar, 3m, sony. they had their managers, their executives taken hostage. for executives by caterpillar taken hostage in 2009. the workers got more severance pay. they got 3% more. 3m took their hostage, took one manager hostage. he gave them a take-out meal, mussels and chips. to the court of appeal and the court ruled in the workers' favor. they got more money.

that is why goodyear workers are doing this. a one more bonuses, more severance packages. >> thank you very much, caroline hyde. the netherlands' largest pension fund is boycotting israeli banks because of their ties to west bank settlements. elliott gotkine has more. how were reading it in element is this? this is not a huge deal according to a newspaper here in israel which ran the story. the investment amounts to a few million euros. the fact that israeli bank shares are up and not doing that much this morning also would support that. why this story matters is the message that this boycott by this dutch pension fund sends out. and the potential precedent it sets. what is saying is we have been negotiating for years with israel's biggest five banks. we have been trying to get them to stop financing construction in the west bank.

since that didn't come to fruition, since they were on able to change the thanks behavior, they decided to withdraw all their investment as of january 3. they are no longer shareholders in israel's top five banks. i have been trying to get comment from the banks. spokesperson who said they were able to give us any further details. fundinly the dutch pension has confirmed all of these aspects although refused to elaborate on the size of its shareholding in israel's biggest banks. some fairly activist tactics from this investor. the dutch pension fund's bank boycott is not the only one that israel is currently facing. thingsnd a lot of the into the emanating from the netherlands. we have the case of a dutch which endedy cooperation with israel's

national water company again because of the letter's involvement on the other side of the green line, the west bank where there was a dutch company do to build a sewage treatment plant. it also pulled out when it learned that was going to be taking place. taken together, these individual pinpricks aren't causing huge amounts of concern. they are not causing large amounts of revenue loss for any israeli companies but the worry here is there might be some kind .f momentum building that this could ultimately do some damage to the israeli economy. it certainly gets politicians and a bit of a fluster. >> i can imagine. thank you very much, elliott gotkine from tel aviv. >> thank you very much indeed. let move on and talk about hedge funds. today, bloomberg markets raises its rankings of top performing hedge funds in 2013. john ferro is here to tell us how these became the most

successful in the world. how did they do versus the market? this is the benchmark. 16 of there only world's largest hedge funds that beat the s&p 500. 16. it is printed right across the front page. big pressure on them. these guys have paid a lot of money. the guy right at the top, and 84% gain. larry robbins, remarkable. where did he put his money? we are talking about a mix between politics and business. he saw that was obamacare came over those final legal hurdles, that more people eventually would get insurance provisions. it meant that more paying customers arrived at hospitals, more volume, more money. join the dots, put it together, go in hard. that is what he did. facilitieshcare runs

across multiple states. it saw a gain of 45% by october. with these guys is, is there consistency? how did they do five years before that? if i am putting money with you, you can have one great year and if you have four bad years after that i am not interested. >> it was almost a perfect storm for larry robbins. this is a guy that typically does not like the cyclicality of these stocks. stocksar it was those that he avoided. going forward, we know what the numbers are. hedge funds have underperformed the market for a long time. the last time they beat the market was 2008. do you know why? their losses were less than the overall losses of the stock market. error is a lot of pressure on these guys. >> i don't want these guys to compete with the benchmark. i want them to make the money. that is why i would invest with them. at 2% for looking

management fees, 20% on top of the returns. this is a big payout if you want to but money in these funds. >> jonathan ferro dawning of the latest when it comes to hedge fund rankings. let's leave you with today's pulse number. 30. that is how old north korea's later -- leader kim jong on is as up-to-date. that makes him the youngest head of state, three years younger than another youthful roller, the king of bhutan. rodman will take part in a basketball game in the country. was this short-lived marketing campaign a failure or a success? we will look at the business behind the basketball story in north korea. ♪

>> welcome back. you are watching "the pulse" live from bloomberg's london headquarters. i am guy johnson. the former nba basketball star dennis rodman is in north korea playing an exhibition match. his trip was originally by an international betting giant but the company

pulled the plug after too much negative press. they are still footing the bill though. >> as sporting stunts go, this one is pretty good. larger-than-life dennis rodman is back in north korea leading a team of retired players in an exhibition match. rodman who has a colorful history says he is close friends with kim jong-un. >> he is a very good guy. >> leader of the one of the world's most repressive nations and a man who recently had his uncle executed on charges of treason. to make this trip possible, and irish betting giant put up the money but as controversy swirled, they got cold feet. paddy power now saying they got it wrong and should not have got involved. they are still paying for it though. to honor their contract, they would not say how much. >> we will sort them out. >> paddy power is a company with

a history of controversy. this commercial was banned in the u.k. after just four days. this commercial was the most complained about in 2010. getting the picture? does their controversial advertising work? had a power's sponsorship of the event has drawn international attention, particularly in the u.s. could this be a case of any public city is good publicity? >> we are going to talk about the pr angle of the story later on. in the second hour of "the pulse ," we discussed what paddy power has gained or lost from this story. last year, carbon market headlines dominated. trading desks across the city of london being closed. can the struggling market make a rebound? we will talk about that as well when we come back. ♪

>> welcome back to "the pulse pickup today jack lew is in germany to orange -- to urge the finance minister to boost demand. despite the nsa spying scandal, relations between the two

countries remain strong. our guest is a senior vice president who joins us from berlin. hans nichols who's normally in berlin also joins me on set. let's ask you then about consumer spending in germany. some of the data has been more robust on that front. where does this discussion go? don't think we are going to see anything new in this discussion. the german line of defense in this debate has been relatively stable for the last year. that is certainly that the german economy is going relatively well in a comparative context in the regional context. the effect the of the german labor market actually doing a lot to play a part. i wouldn't expect any major change here from this conversation. on the could just ask separate site, we think jack lew is going to be pressing on, a

banking backstop. does he have more prospects for success on the banking side as opposed to just the macro stimulus side? >> not at all unfortunately. the view here in berlin is that this debate is basically over. the german government i'd actually have a point. if you look back at the time just before christmas, this is when european finance ministers meansy struck a deal that that we are not going to see any fiscal backstop in the short term. .his is unlikely to change european finance ministers have to strike a deal with parliament in brussels but the basic decision that we are not going to have a fiscal backstop in the this is not something they would move. has cast a fairly

successful export model. do you think the government is more likely to listen to other eurozone leaders or visiting americans or neither? >> probably not. it is clear that germany remains very reliant on the european market. 60% of its exports go to the eu, 40% to the eurozone. the strength of the german export economy also means that the german policymaking process is focused on competitiveness. that is not going to change anytime soon. >> last question, is there anything that he can tell lew in terms of updating him on what the coalition is going to spend and where they're going to spend? is there anything he can give to say, will allow lew here is what i learned from the germans? >> probably very little. he is going to say that europeans are making progress with the deal agreed in the case of banking unit.

when it comes to domestic german policy, we have to be realistic. it took a while for this government -- now that the new german government is starting to act. -- there hasn't been an awful lot of policy initiatives. much, carstenery on thatnd hans nichols subject of germany. the coalition government in germany is very much focused on the energy market. guy come over to you. >> let's pick up on that story. it is now time for new energy. carbon, horrid year last year when it came to the trading. 2014?going to pick up in is the story going to get any better? what can we expect? the head ofuss, carbon market analysis for bloomberg's new energy finance. good morning. how bad was it? a third consecutive

drop in the overall global market trading and only 40 billion euros of carbon credits changed hands. that is less than half of the peak in 2011 when the trading value was about 100 billion and about a third less than it was in 2012. the main reason for that is a big drop-off in prices in key markets. if you look at the queue to offset markets, prices collapsed to nearly zero. if you look at the european market, the price was about 10 euros per ton to five euros per ton. some of that, the loss was limited by an increase in trading volumes which was a positive side to the market. >> 2014, any better? all thee will be taking weight on. it will be the main market. policymakers are determined to reform the markets and they will probably take on a decision today to significantly cut the supply. that will increase prices again

by approximately 50% this year. as a result, we will see an increase in the global market value up to around 46 billion next year and potentially a bit more in the subsequent years. >> so things are improving but only a little bit. what will it take for this story to really take off, to get back to the idea we first started with? >> i think climate policy overall has to be picking up. it might happen more on a country level than a global level. we are seeing markets in asia, south korea will launch its heart and market next year. north america is making progress as well. we need to see a more bottom-up carbon market initiatives and more credibility to the market as well. europe is reforming its carbon ,arket, making it more credible decreasing the supply and also making it more flexible to the overall economic system. if we get more bottom-up systems and a bit more reform, then we

can see a more significant pickup in that. >> thank you very much indeed. we will take a break. see you in a moment. ♪

bows out of the race to run microsoft. ford's ceo is staying put. another big unveiling at the consumer electronics show. sony takes on netflix with a tv service. >> u.s. treasury secretary jack itspushes germany and widening trade surplus. good morning, welcome to our viewers in europe, good evening to those in asia, and a warm welcome to those waking up in the u.s.. i am guy johnson. i am anna edwards.

this is "the pulse," live from london. breaking news. >> euro area november unemployment has held steady at 12.1%, what the market was anticipating. >> the market was not anticipating the retail sales number. on the month.4% the estimate was for an increase of 0.1%, much stronger retail sales from the eurozone than the markets had been anticipating. we will keep an eye how that is affecting the asset classes this morning. how is that affecting the euro? 5. not at all, 1.360 a small pickup. is it the germans that are spending more money? that is a question that needs to be asked. >> one that jack lew will be thinking about, about to get

tough on germany. he is in berlin and will be meeting with the finance minister wolfgang schauble, pressing the government to boost domestic demand. we are joined by hans nichols. we don't know how the germans are spending and this number, this is a eurozone number. we had retail sales yesterday from germany, an interesting picture. consumer isean spending more. german consumer is spending ,ore, this will help schauble another line in his argument to jack lew that we do not need to do more to boost aggregate demand. that is a message jack lew wants to bring, he previewed that in france and will talking about it in person with wolfgang schauble today. do not forget about the banking unions. listenhave a backstop, to how jack lew prefaced his argument to schauble in france yesterday. >> we have made no secret that we think having backstops in

place is important. we would like to see more action taken. we have to look at where things were just a year and half ago and where things are now. it is a significant progress. of his is a preview argument he will be making today in berlin. then he travels to portugal, more of the good cop, giving them a pat on the back for sticking with their rescue plan. we could have tension. you never know how much tension is going to be public, we could have tension when they faced the cameras, jack lew and wolfgang schauble later today. >> you wonder how much the nsa spying scandal ways into this, much discussed in the german press. >> jack lew is the highest level officials who come to berlin says a lot of this has come out. well, when did it come out? the president was there in berlin. this is another data point for jack lew to have to answer, and an argument for schauble when he

says do not tell us what to do. we are crawling out of the crisis on our own merit. >> i am going to leave the jokes to be had. hans nichols, our international correspondent. tech. story, more another big unveilings at the consumer electronics show. servicel test a paid tv in the u.s., providing on demand streaming. ryan chilcote has more. >> at the end of the day, they are owing to provide this linear tv with on-demand services. are they going to be successful? that depends on the extent they can provide good stuff easily. consumers do not care where the content comes from. they want to watch what they want to watch how and when they want to watch it. they have a leg up in the u.s.,

sony already has 70 million web connected devices in homes. stations.sets, play position -- 25 s, over 4laystation 3' million playstation 4's. get have the hardware to people to the service. at the same time, if you think about the challenges, people have a lot of options. you were talking about netflix. netflix is already established, investors like it, shares went up threefold last year. netflix has the license to a lot of content. in the same way that sony does not want to lose out like you did to apple with the ipod, the music platform, they do not want to do a beta again. be so provide all -- be separate title --

have a farmersto market thing, everyone can put their content on there. it is not easy. he said you have to be ready for trial and error if you went to innovate. sony, we zigzag our way to great innovation. other times, we fail. do not recognize or remember any of these products. neither does the rest of the world, it is ok. [laughter] so for the last nine years, sony has been making television sets part of its manufacturing arm. for those nine years, it has been losing money. the problem is that it is a comedy business, you have the chinese making tv sets. they have got to add something, they are talking to cbs and fox and nbc about providing content. and making a compelling offer. it is not going to be easy.

>> we have got more news about -- >> playstation. >> the chinese angle is interesting. alternately, that may turn out to be a huge boost for the company. a little faux pas in the after-hours party. i am more interested in that. leger,lesger -- john ceo of t-mobile, went to at&t's after hours party at the electronics show in the states there was a reporter there who took a picture of him and tweeted it. after that, a bodyguard ushered mr. leger out. a good media stunt, he is known as the loudmouth of the mobilephone industry stateside, he has 54,000 followers on twitter and has been in this

at&t.tious battle with he became ceo of t-mobile in 2012 and made a that of a/there by crashing at&t's party and getting kicked out. theaid i just wanted to see macklemore show, a rapper in the u.s. why had no comment on they kicked him out. >> the latest on sony. freezing temperatures in the u.s. have pushed up the prices of natural gas and oil, u.s. oil prices have been on a tear with cheryl and fracking -- with shale and fracking, etc. this has huge consequences for the rest of the world. you cannot export oil from the u.s., you can export petroleum. mother of seen the

all oil booms in the u.s. for the first time in 20 years, the u.s. is producing more oil than it imports, 39% drop in induction -- 39% jump production since 2011. refineries in europe have closed in the past five years alone, by the end of year, you might be able to make that 16. less need for them. dependingas gone from on fuels from europe to exporting it to them. saw this oileople boom coming, how much further does it have to go? talking of people are about china taking over the u.s. as the world's largest economy. you have to think about the u.s. becoming the worlds largest oil producer by 2015, china might need that. it's restrictions -- big restrictions in the u.s. on the amount of oil they can export, but pressure is building.

in 2011, president obama said by 2025 the u.s. would cut crude imports by 2/3. it took three years. >> jon ferro on oil markets. is on our what else radar, millions of americans have been doing -- been in during coldest temperatures in decades. temperatures in chicago and detroit were lower than at the south pole. in new york, temperatures smashed records set in 1890 six, those forced thousands of flights to be canceled and plenty of distraction on trains. l'oreal will stop selling garnier in china, the first time the company has pulled a brand out of china since it entered the market in the late 1990's. more than 100 employees will be affected by the move. 's alan mulally says he is not leaving for microsoft. his remarks end speculation

about his candidacy for the top job at the tech giant. he says he will stay at the automaker through 2014. some breakingou news. this is, if you can see him, a french prosecutor investigating michael schumacher's accident, he remains in critical condition. the press conference is taking place in french. as we get more headlines, we will bring them to you. from histures coming helmet, waiting to see what those are going to tell us about the nature of the accident. on his health. coming up, we will return to our tech team. from wearable hatchets to curved screens, the hot trends expected this year. ♪

you're watching "the pulse," live from london. i am guy johnson. >> i am anna edwards. what isgn exchange, happening here? this is the picture on euro/dollar, 1.3 603, data is not really moving things around. a little bit later on, you will start to get this flow of data which will change things, fed minutes later, adp numbers

coming out, the european unemployment number has not changed. tomorrow, bank of england and ecb. friday, into the employment numbers. be next 72 hours will interesting. more interesting than the start of the week. anna. >> let's talk about alan mulally, ford's chief executive says he is not leaving for microsoft. his remarks end questions about his candidacy for the top job at the tech giant. he will stay with the automaker through 2014. hans nichols is here with more. i asked alan mulally in months past whether he was interested in taking on another job, he was very professional and diplomatic and said things about how he was committed to ford. this has given anything more forward-looking and rolled out speculation. you have to wonder -- here we are in 2014, he had plenty of opportunities. journalists were asking this all-time. would not, i would

like to end speculation, i have no plans to do anything other than serve at ford. it seems as though microsoft maybe having a difficult time filling this position. they have already -- a few other candidates may not be interested. >> they set a timetable which was the end of the year. >> they busted through that timeline, now, do they go internally at that we have internal candidates. >> who? lot -- stephen elop , tony bates, satya nadella. whoever leads the company is going to have to answer to steve ballmer and bill gates, they are watching every step you make as ceo. >> interesting to see what direction microsoft heads in. as you have been pointing out,

this is a cash generating business. >> for steve ballmer's time at microsoft, they had $20 billion in revenue, and spinning off cash. some of those cash streams do not seem to be diminishing. they still have a strong balance sheet and are in a decent position. this is internally, they need a strategy for mobile and for search, for the future. >> thank you, hans nichols. abouting a little chat what could happen next at microsoft. let's change our attention to what is happening at ces in vegas. wearable technology and curved screens. joining us for more insight on how this is going to change the market is former vice president of skype, recently founded an initiative called tech london advocates. one of the clear things that has come out of ces is that there has been a huge proliferation

and sensors and a wearable technology. a lot of money being thrown at the walls, some of it sticking. a new lifecycle in the tech space. any perspective on where this is going to take us? >> wearable devices are going to build and the mentum. things like the pebble. you really have got the first smart watch that people are saying, wow, i like this, it works. it is a smart device. you see more and more people wearing smart bracelets as well. you are going to see that happen. the formfactor, design, fashion is going to play a role. the tech community does not always have a great track record. >> certainly not. one of the things that came out of the smartphone story was that if you allow other people to write code for your hardware, you end up with an explosion in uses and maybe some of her

seeing uses of the technology you are producing. when you look at the sensor story, are we going to see a similar thing? we have low-power bluetooth stuff that will communicate and work very well. orstill do not understand have the imagination to understand what we are using this for. >> it is starting to happen. smart watches are an example. company called holds wallet -- called pulse wallet. goy have something where you and pay for something, you do not need your credit card, you put your hand on a device and it reads your palm diametrically. there is mass-market implication for that. is unique. palm the data coming from that and how we capture that can be very powerful and interesting. also it can raise alarm bells about security. this is my data in my hand. i am giving this to lots of

other companies. if theuld have concerns police had my fingerprints on my palm prints, should i be concerned if microsoft or apple or samsung had that? >> is that information safe, everything is now being captured in the cloud. as we have seen over the past year or so, the security and information access to the cloud, you know, is an issue. >> when we get hackers going into these companies, we get e-mails telling us to change our passwords. you cannot do that with your fingerprints. it andn, if people adopt say yes, i will do it, there will be some people who say i do not want to place my fingerprints on something like that. people equate that to go into the police, putting the fingerprints down. i had just given that to someone else. it is a big opportunity, but there are big issues and ethical issues.

>> that is true of my heart rate sensor or anything else i am going to be capturing with these devices. >> there is a wonderful opportunity in the wellness and health space. if you look at emerging trends, obesity is becoming a huge issue. no pun intended. that will cripple health services, we need more and more people to adopt these devices to think about health and fitness. the flipside is, organizations are going to capture personal information about my health and well-being and i may not want to share that with them. my employer, i might know what my employer to know about my health and well-being. it is going to be an interesting balancing act. in 2014.inating story thank you for stopping by, founder of tech london advocates. still ahead, dennis rodman's latest trip to north korea sparked controversy union his ower, decided to back out of this trip. is any publicity good publicity?

we talk about that from a business point of view when we come back. ♪

>> welcome back to "the pulse," live on bloomberg television, radio, and streaming on bloomberg.com. >> some companies that are on the news this morning. there is trainee is uniquely qualified -- minestrone is uniquely qualified -- manus cranny is uniquely qualified.

>> when it comes to industrial inhting, delay from the u.s. terms of industrial lighting, stock down 25%. they have a jv with phillips, maybe some interesting things from led. , hardware, toys stock down 30%. full year profit is going to miss, margins are coming under pressure in the u k not spending enough on your babies. toorgan cut the stock neutral. pizza up 2%. sales up 11%, u.k. is doing very nicely. digital marketing is the key. we are online, building a pizza, click, doorbell rings, that is the pizza. >> this has turned into a cooking show.

>> insight into ms.' life -- insight into manus' life. >> ryan chilcote has the opportunity go. managers are being freed after being held hostage in france. last -- boss-nappings are not all that rare. >> bafta nominations are out, "gravity was put is leading the pack. got 10can hustle" nominations. winners will be announced on february 16. >> follow us both on twitter,@guyjohnsontv. @annaedwardsnews. what you need to know for the rest of the day and talking about dennis rodman

strip to north korea as well. all that is coming up for ♪

>> good morning, welcome back. you are watching "the pulse," live from london. i am guy johnson and these are the top headlines. hadions of americans and just endured the coldest day in decades. temperatures in chicago were lower than those at the south pole as frigid air clamps down on the u.s. in new york, temperatures smashed a record set in 1896. thousands of flights and trains have been canceled. billionaire investor mark mobius

says he still sees fundamentals in emerging markets despite major wall street banks being bearish on the sector. in an interview with bloomberg, emergingys em to markets are a great opportunity. >> investors in the u.s. are overweight u.s. they now have to diversify, otherwise they are in trouble. force helicopter has crashed in the east of england, killing all four crew members. the helicopter, similar to the one you see here, crashed during a training mission on the norfolk coast. >> the netherlands' largest pension fund like having israeli banks because of their ties to west bank settlements. -- boycotting israeli banks. elliott gotkine has more. >> as an individual action, it

is not terribly worrying. they have confirmed that i they have taken away investments from israel's top five banks. newspaper,o ha'aretz bank shares have not been suffering. that such a move sense, the precedent it sets is what matters and what will be causing concern in israel today. to adhereis saying, to international law and to keep in sync with their own corporate social responsibility practices. they need to ensure they do not invest in companies that are involved in the occupied west bank. havingy they have been dialogue with israel's banks for years now, trying to persuade them to desist from supporting the construction of west bank

settlements or to have branches in west bank settlements, to no avail. as a result, the netherlands' largest pension fund has said that as of january 1, they no longer have investments in israel's top five banks. we try to get comments from the top two banks, were unable to get an i-formation -- but we were unable to get information. >> this is not the only boycott israel is facing. >> most of the high-profile ones seem to be emanating from the netherlands. there was a case of the dutch water company suspending cooperation with an israeli company over the latter's involvement on the other side of the green line in the west bank. another dutch company was due to outd a sewage plant, pulled because it would've meant working in the settlements in the west bank. individually, these are not

having huge impacts on the israeli economy or israeli companies. there is growing concern here that there is a growing momentum to boycott israeli academic institutions or israeli involved inat are the west bank or in west bank settlements. even if, as in the case is israel's banks, it is more indirect than necessarily directly financing construction. anna. >> thank you very elliott gotkine reporting. freeodyear managers are after being held hostage by union workers in france. this as other workers set fire to tires. these so-called boss-nappings are not that rare in france. caroline hyde joins us for more on this incident. what caused these buses to be napped. >> a year ago, goodyear said we are going to close this plant down in the north town of amiens .

they have been battling it out for five years with unions. peacefulked demonstrations at first. later, they turned violent. then it came to a head wind is co-executives, one who you see walking free, were held. they were given phones and barricaded in using tires. it is all about getting more bonuses, getting more severance pay. the cgt leaders, the leader of the union, they said we are going to occupy the plant. the show is just beginning. >> this sounds pretty abnormal, not in france. >> it might sound abnormal to our ears. maurice taylor, chairman of beingkin the u.s. were lured in to try to revive this plant.

he said he was not going to invest in this, the french only work for three hours. this caused antagonism. yesterday, he said all these -- he said are these people crazy, this is going to achieve nothing. it does achieve something, that is what is fascinating. there were 10 french boss-nappings in 2009/ . it seems that crime pays. caterpillar help 4 -- executives held 4 hostage and then upped their severance pay. 3m, managers were taken hostage, they were given a meal of muscles on ship -- mussels and chips. they let this man out and take it to the court of appeals. the appeals court ruled in favor of the workers. they keep getting more money.

makes it sound like your boss is having a nap. we will come up with something better. caroline hyde, thank you. anna. >> no napping. thank you. 20 minutes until surveillance takes to the airwaves. tom keene is here to tell us what is coming up on the program. what are you looking at? you have got some slightly warmer weather coming your way. really something, i grew up on the edge of canada and north -- western new york. there. normal for up this is extraordinary. most extraordinary was how the cold reached south towards the gulf of mexico and into texas. austin, texas, that is where the university of texas is and where the acclaimed sxsw conference is was a 12arch, there

degrees above zero fahrenheit for austin. that breaks today, we are going to break down the future of media. craig moffett will joins us, he was with stanford bernstein and now has his own shop. the most interesting guy on the block, john malone. you know him with cable acquisitions, talking to moffett about malone. now we will talk to robert d ahl about the track record he had for 2013 and his view forward. a, equities he is long. very cautious on gold. bob doll why gold will continue to move south. >> i have been to austin, i spent most of my time trying to find water. too hot. ofzing images coming out

north america. tom will be that at the top of the hour. let's take a look at how european equity markets are trading. manus cranny has more. you have record levels of unemployment in italy. you are just off record unemployment of 12 .1%. that ultimately has an impact in terms of overall domestic demand, the whole argument from jack lew, treasury secretary, in terms of rebalancing he is telling germany to do for the rest of the markets. overall, stocks are off a 5.5 year high come a london coming off a 2-month high. y,s. equity futures, fed da we find out what the federal reserve committee discussed. how focused are they on a $10 billion reduction in credit easing -- and qualitative easing? inching lower.

we get the adp number, a private payrolls report. indicator to the unemployment numbers on friday. 000 jobs. to add 200, one stock that we are most focused on here throughout the hour, a huge retailer in the u.k. --t record trailer on record best record trading on record. higher, a dollar proclivity to take risk. just coming off the dollar -- the dollar coming off a five-year high. >> thank you very much. manus cranny on the markets. before break, today's pulse number. 30. ist is how old kim jong-un as of today.

that makes him the youngest head of state in the world. three years younger than the next in line, the youthful ruler of bhutan, 33 years old. dennis rodman and a team of ex nba players will take part in a basketball game in the country. paddy power was the sponsor of this before it got cold feet. was this campaign a failure or was it a success? talking about that story from a business perspective when we come back. ♪

>> welcome that, you're watching "the pulse." company news. yahoo!'s marissa mayer has unveiled her plan to revive sales. she is revamping advertising services, mobile products, and digital magazines for technology and food news. alibaba will ban the sale of after china's central bank tightened regulations in december. the company says this will help protect users. retailers including gap urging talks to end clashes in cambodia over worker pay. three people were killed during a recent strike. anna. >> former nba basketball star dennis rodman will play an exhibition match in north korea today. his trip was originally sponsored by international

betting giant paddy power, the company pulled the plug after receiving too much negative press. its stock -- it is still stuck footing the bill. go, thisrting stunts one is pretty good. larger than life dennis rodman is back in north korea, leading a team of retired players in an exhibition match. >> it is most of their first time here. >> rodman says he is close friends with kim jong-un. >> he is a very good guy. >> leader of one of the world's most repressive nations and a man who recently had his uncle executed for treason. to make this trip possible, irish betting giant paddy power put up the money. as controversy swelled, they got cold feet. paddy power now says they have got it wrong and should not have gotten involved. they are still paying for it. they had to honor their contract, but would not say for

how much. >> we will sort them out. a history ofwith controversy. this commercial was banned in the u.k. after just 4 days. this commercial was the most complained about ad of 2010. getting the picture? does their controversial advertising work? sponsorship has strong international attention, particularly in the u.s. could this be a case of any publicity is good policy? -- the publicity -- good publicity? >> could their role actually benefit paddy power? social media users buzzing. dennis rodman is trending on twitter this morning. joining us now to discuss the power of a viral marketing campaign, ceo of online marketing company social bee. this is interesting.

does it tell us anything about the way businesses are trying to connect with social media right now? where is this standalone? >> it is not standalone, social media is opinion based. their say, to have with controversial news or just sharing tragic news like the helicopter accident last night. it is sharing people's opinion and a way businesses need to understand that it fragments the way you market your business. you cannot control how people perceive your business or how you want them to perceive your business. >> which businesses will the consumer and anybody else -- it is not even your own customers. which companies are doing this well and using social media? roughre is a large and companies that are listening, from organizations like barclays.

thing aboutgreat social media. barclays use it really well, they launched an app last year. thejust listening to positive stuff, they listen to the negative sentiment. i found out people were having problems with the app, they turned a product around in a week. it is hugely valuable for businesses to use and listen. >> you can listen to what people think about your brand. lots of companies that will help you. what about the way you use that information, trying to get your messages out there and targeting your market campaign. do you see companies devising different marketing campaigns depending on different channels and social media? thate key to success>> is it does not sit in one silo, it is not just about marketing. for customerd services. the businesses harnessing it well focus on their business objectives before they focus on

the social media tools. the tools are like the telephone and e-mail. when businesses understand that that is not a route to people, you can start to have an impact on those platforms. understanding your audience and your competition and then strategically using that for outcomes of success. whether that is improving negative sentiment or listening to the audience, using it for business development or improving customer retention. >> which names and social media are coming up the rails and gaining traction? they will be on companies' radars as places to advertise. >> there is a huge amount of platforms. facebook, twitter, linkedin are a given. google plus has been lipservice to people over the last couple years. it is when people need to adopt. with google plus, it is a big

man, is quite small in relative terms. >> that is not coming from a small start up. >> the real success in google plus is that they want to deliver personal results to people when they are searching, that is how google plus ties in. >> thank you very much. we will be back in a few minutes. ♪

>> welcome back, you are watching "the pulse." euro/dollar dipping.

adp number is out, more useful than it has been in the past. nonfarm payroll tomorrow. said minutes -- fed minutes. we have seen unemployment in the eurozone remaining at levels just north of 12%. jack lew in germany, in berlin, meeting with schauble. watch out for the body language on that press conference later on. anna. >> the electronics world gathering in las vegas for the consumer electronics show. jon erlichman is there checking out the latest gizmos. >> you have heard of google class and samsung smart watch, we are entering a world of wearables at the consumer electronics show. i figured why not wear myself out. this guy is the wearable camera.

sensors inside tell it if the light has changed or if i have change my speed. it can take new pictures when i have made those changes. this measures heart rate variability. it costs $75, $10 additional for the app. it knows when i am ready to do a workout. if i did a heavy workout, it will say wait another day. this is not on the market yet, it measures fitness and sleep. it has got a little emergency button. if i fall, it will alert, i amps, somebody that in trouble. they will text our producer if i get in trouble. this is for kids or parents. five-year-olds to 11-year-olds, $199 and $10 per month to place calls to your parents or have

calls from your parents to this. you can create a gps zone. if kids go outside, you can send them a text. wearablet the basis, health, measuring blood flow and how slutty i get. $200. -- how sweaty i -- how slutty i get. i am getting a little worn out. jon erlichman. >> a look at what we are watching for the rest of the day. , elliottols joins us gotkine is also with us. fame.le technology is a -- a theme. >> urban meyer when cell phones were bricks, that is kind of where we are with wearable technology.

>> you will never get into wearable technology. sony introduced a camera mount record images.an not sure why you need that. >> let's change gears, we will go to tel aviv. ellicott cain -- ellicott got cain is watching egypt. >> the trial of mohamed morsi was due to resume today in cairo. standing trial on allegedly ofiting the killing protesters. his helicopter never made it. he is in alexandria. authorities say that whether -- fromeather prevented him coming to cairo, february 1 is when they will resume. >> some violence ahead of that trial. pulse,"is it for "the

keep it on bloomberg. "surveillance" is coming up next from new york. tom keene will be joining you in a few minutes. ♪

sees anresident improving economy for the elites. inequality is his economic theme for the year 2014. stocks advance. the job market, too.

we will be with a bear. he did not go to the scarlet fu school of members, the t-mobile ceo gets tossed out of the at&t ces party. lasll mannered ces and vegas. live from world headquarters in new york. it is wednesday, january 8. i'm tom keene. she is back, scarlet bang -- scarlet. she came in from the cold. and cristina alesci. >> the polar vortex. i went over -- >> you went over the vortex? the whole week. >> but you were affected by the cold? >> yes i was opposed to be bank yesterday and my flight was canceled. >> time for morning brief. we have to start in the euro area because unemployment held at 12.1%. what is sticking