>> treading lightly you read the crucial fed minutes show officials being careful as they started tapering process voicing concerns about future risks to financial stability. >> european central bank and bank of england are expected to stick to the status quo today. the challenges are very different with mario draghi backing inflation and mark ernie's forward guidance coming forward. >> luxury carmaker rolls-royce reporting record sales. series twoe the phantom for a spin and talk to the ceo live.

hello. i am mark barton. anna edwards.-nomic it is just on 6:00. we are ready to deliver the stories or your day. manus cranny is looking forward to the decisions from the bank of england today on ryan chilcote as many most envied person in the newsroom outside ready to take a spin in the rolls-royce phantom. headlines from the fastest-growing holiday results later. for chief executives. hans nichols has the details on a new app targeting business execs instead of teenagers. up, a little bit more

details on rolls-royce. taking you inside the super luxury car brand. this is parked just downstairs here at bloomberg and ryan chilcote will take it for a spin later. whose decision was that? i'm not quite sure. >> of the u.s., the federal reserve saw fewer economic benefits from the bond buying program because of concerns about a natural stability according to minutes from the last meeting. what's the next step yard go we have the details. detail ase bit more they finally pass go. one word really stands out, efficacy. quick say it again. >> efficacy. it was declining as purchases continued.

finally, in an official statement from the federal reserve, you can see a lot of people see that it is starting to wane. a lot of talk about costs. is the potential for excessive risk-taking. some people think that vote has already left the port. >> diminishing returns. did you get a clue on how quickly they would be removing stimulus from the economy or at least stopping it as quickly as they are? were, one,uestions momentum. did they get any clues on that? not really. the lack of market reaction says that it remains intact. than theyn per month think the pace is being maintained. another conundrum was rather they would define the threshold. unemployment comes down to the threshold. >> little support for it.

to change reluctance policy. there was interest in you see a little bit more emphasis on the inflation side of the mandate. so long as it does not exceed 2.5 or send an rates could stay low. if you really want to reinforce that rates will stay low for longer, perhaps you shift the emphasis from unemployment to inflation. >> a few contrasting views on the labor market. we will compare this later on. >> 10 billion a month for the next seven meetings? >> it looks that way. >> thank you. tito central banks releasing the first of meetings today. we will have enough date on rate decisions from the boe and the ecb later. manus cranny is here. let's start with the ecb. what are the options on the table? >> the presumption is no change

from the ecb or from the mpc. all 51 economists say no change. they have fragile growth, bank lending falling and disinflation or no real muster in terms of inflation and that is a threat. it's cause and effect. the ecb will take charge of the banks said they will review the asset quality. quid pro quo, build up your reserves. >> which means you may not land. >> a vicious circle. will you begin to read into this? pimco says you have to do a cleanup before you can actually begin to lend. inflation is below target. is below in europe target for the 11th straight month and this disinflation is the notion. spiegel" says there's no

reason to act at the moment. no real reason for that. long-term loans with contingents -- >> very different challenges facing the bank of england and mark carney. >> a complete flipside if you think about it. two extremes. forward guidance begins to buckle. what do we mean by that? fastest growth since 2010. the knockout or one of the three and the u.k. is an unemployment rate of 7%. the way that it's running right now is that you could see that by 2015, so a couple of things. will mark carney go for a change in forward guidance? his credibility may well be shot. rates will be over 1% in the united kingdom by march. do the math. that takes your mortgage rate to 2.5%-3%. bank will be breaking the

of england rate decision at noon london time. we will have the latest decision from the ecb. we will also have mario draghi's press conference live and in full. >> it is a top super luxury brand in the world than they have talk to their record for the fourth straight year. ryan chilcote brings us an inside look literally at the british carmaker behind the iconic phantom. being in ther than studio. a little bit of market research. inside the rolls-royce phantom. $500goes for about million. that's the starting price. i thought it would be nice to pimp my ride and move it up from the ford fiesta today. the results are extraordinary. another really good year for rolls-royce. byyou know, they are owned

bmw. they sold just over 3600 cars. basically 10 cars a day which is from 2012. 60 cars butoes not sound a lot rolls-royce does not want to make a lot of cars. they don't want you to see other roles out there if you're having this experience. germany did pretty well. part of the issue there is the may balk is gone. competition with the bentley came out all right. bentley a little bit cheaper. bentley, you a drive. if you are in a roles, you are driven. driven.rolls, you are the middle east saw the biggest sales growth. that's not a whole lot of cars. i said $500,000 but the sky is the limit. take for example the starlight headlining.

have your celestial sign up there. each one of these leds is individually done by the more than 1000 people who work at the factory here in the u.k. k. quite the interesting car. a good year for rolls-royce and bmw comes out with their earnings. i will have the ceo of rolls- royce. he mistakenly loaned this to me and we will talk not just about rolls-royce but the very high- end of the luxury car market through the day. anna and mark. >> is he wearing his seatbelt? >> i'm not sure. >> ryan, get your seat helped on. >> where are they taking you in -- the ceo's gps >> we are on our way to heathrow. [laughter] seenan chilcote last

leaving the country. we will be back with more. flex when you are in your bentley, you drive it and when you are in your rolls-royce, you are driven. >> i would love to be driven generally. i think that's not different than normal. to wear a like ryan tie. he's not wearing much of a tight. >>, on, ryan. make an effort. this global chain is getting some breaking details. mia saini has the details. good morning. >> the numbers are crossing the terminal right this second. we have a beat when it comes to net income for the first quarter. they calculated as the three months that and november 30. we have 41.8 billion yen. that is the income coming in beating analyst estimates of

those we survey at bloomberg and if you were to put that in perspective on a year, also beating the previous which was ¥38.5 billion. he went to see what the growth is looking like in sales for the three months, 880 ¥9 billion, higher from the same time last year. what's most important is the full-year forecast for sales. ¥1.3 trillion. they did trim that just slightly . you think about more broadly typhoons and unseasonably warm weather in japan contributing to in salesm percent drop in october. that was the biggest monthly drop in three years and the casual clothing retailer looking these higher- of margin close including cashmere sweaters and cardigans. per customer spending rose in the quarter after gaining in october for the first time in some 11 months. it's interesting because the

president is adding stores outside of japan including china, indonesia, part of the big plan to more than quadruple sales to ¥5 trillion. he's even going to be adding a store in your part of the world in germany. we will see how it trades tomorrow because it did close right before the numbers came out. >> thanks, mia saini, in hong kong. >> let's see what's coming up on "countdown." we are joined by caroline high dan hans nichols. we have had discounts, promotions, fierce competition in the run-up on the u.k. high streets and we are starting to get a picture of the winners and the losers. .n the winning side, john lewis on food, it has to be -- we are

getting numbers. could it be 10 straight quarters of declining growth in terms of sales of clothing? will be food also have slowed down as well? numbers coming at 7:00 a.m. and the biggest growth in the united kingdom, all about tesco. foray into india and much more on that in a moment. that's talk tech and the city with hans. indiscreetof those conversations we have over e- mail, there is a new app called confide. it is basically snap chat or the c suite. you dry your finger across the xt and it is erasable. there is one regulatory hurdle and that it is they are sometimes required to keep electronic communication. we look at the app than the regulatory challenges ahead and then we will text and discreetly.

>> interesting. >> in the u.s., tapering has started. we will see why fed officials are voicing concerns about the risks of bond buying. ♪

>> time for today's company news. hasworld's biggest maker canceled its contract with on terror and suing them for compensation over the baby formula contamination scare. it resulted in product recalls across asia including china. japan's health ministry is demanding a criminal probe into the swiss drugmaker novartis. they say they may be in breach claimsrtising laws for of its medicine. they are in talks over mark over a unit swap. vaccineld trade the business for the over-the- counter unit. welcome back to "countdown." i'm anna edwards. >> and i'm mark barton.

the bond buying impact on financial stability, our next guest is the tapering of those purchases finishing by the end of the year, the fixed income director at hansen global directors. billione minutes, 10 per meeting finishing by the end of december? collected feels like it. the clear guidance was that yes, they are beginning to be concerned about some of the aspects of quantitative easing and want to keep tapering in place. they have greater confidence that the economy is doing well enough to continue. >> what about a potential called in the wheel concerns about the celebration in consumer prices over the year? many talked about that in the preferred measure over half lower than it should be. could more tapering be held off because of inflation at lower levels? >> it's possible. inflation is so low that it has to be a concern for the fed. unless it falls to extremely low levels, less than 0.5%, they

will hold off. >> is this because -- you've mentioned that this is coming from emerging markets. is that what we are seeing here, the boom in commodities, to some extent, calming and therefore we are seeing less pressure? >> absolutely. you're seeing that in all prices. one of the features in the trade data was the improvement in current account position largely because of reduced petrol imports. it's because of self-sufficiency opened drive down inflation. globally speaking, you are expecting 2014 to be a year of recovery strengthening. where do you see that strengthening? where does it convince you most? >> mostly in europe. there is a financial system where the ecb keeping rates at a very low level but the economic

level is becoming a little bit more particular in the u.s. >> there is no inflation in the eurozone as evidenced by data this week. how does the ecb balance low inflation? how does it balance the notion of reviewing bank balance sheets and trying to get banks lending but at the same time trying to boost capital levels? there's a lot of tricky balancing to do by the ecb this year. >> a lot of very difficult thing is the ecb has to deal with and the whole ecb asset quality is going to be encouraging the banks to reduce their lending at a very time that the ecb would like to increase their lending. it's a very fine line the ecb has to tread. we will see them later this year, not today, but later, embarking upon some more unconventional policy. >> we look at further thoughts on the european central bank and

bank of england meetings both happening today. that's next. ♪

>> welcome back. we are here with kevin adams. let's talk about the bank of england. they will beink changing rates which is what most economists think. will they change the forward guidance on all?

>> probably not at this meeting. it's more likely to occur in an inflation meeting which is in february. there's a possibility they do something today but at some page , they will need to change guidance about the threshold rates of 7% which needs to come down. arguably, we are already below that. >> is mark carney's credibility straining or is this beyond him? >> it is the event. he came in with a good deal of credibility and he has made his forward guidance comments and unfortunately the bank of england for casting apparatus has not worked as well as he would like. it does damage his credibility. it is not terminal but it is not helpful. >> i was going to ask about your investment strategy. the recovery is taking hold in the u.s. and the u.k..

those are not really the bonds markets you preferred though, are they tobacco >> it's improving and ultimately they are improving in the u.k. also. the area you want to be avoiding is in those markets. we favor european bonds over u.s. bonds in particular because the ecb has to keep interest rates low. >> i read that the average yield on the bond is 2.55% and the lowest from the financial crisis, ireland returned to the market. market.ht return to the are things getting crazy with the idea of greece returning? the greek government bonds rising last year. would you invest in portugal, in greece? >> the fundamentals of those economies, they are improving

but in portugal and spain, and i think in greece, the fundamentals of the economy are not really improving. you have a general wholesale grab for you and investors see some stability no bad have a seem to be and that has been the case. >> and the yield outside of government bonds, where do we go, kevin? do you still like a high-yield despite the low levels you can get right now? >> generally the corporate sectors are in good shape. you need to be careful to avoid the more highly leveraged companies but there is still low ratepart in the investment-grade area as well. .> kevin joining us >> coming up, looking to innovate right in the kitchen. the latest high-tech appliances at ces.

♪

>> i'm mark barton and these are the latest limits -- minutes. they voiced concern about future risks to an end to stability. ecb president mario draghi convening the first to ratesetting meeting of 2014 in frankfurt today. his to do list includes looking at recovery in the nation bloc and looking at the balance she review of its largest lenders. asia stocks lower on the news pricesinese reduction of extending the longest slide since the 1990's. adding to evidence the second- biggest economy is weakening.

>> welcome back. .'m abe-nomicm anna edwards cancelled it's contract with ontario. paul allen is in sydney. what is dannon seeking? have not specified yet. they have filed for damages in the auckland high court that they have not said what they exactly are seeking yet but that will come out during the course of the hearing. all of this relates back to the botulism scare back in august when they announced to the world

that they were concerned 38 tons of the powder had been contaminated by a dirty pop that one of its processing plants that sparked a worldwide recall of most bold products, particularly infant formula as damage toputational brands including font tara -- fonterra itself. there was no botulism but by then the damage had been done. danone seeking unspecified damages. have todoes fonterra say about it? >> they intend to defend this very vigorously. the legal liability is very minimal if not zero. they are close to reaching a settlement with another company as well. it's difficult to quantify how contract isone worth to them. they have suspended dealings

until they can guarantee that this will never happen again but we do have one analyst saying it's worth a few hundred points of revenue every year but certainly not one of their larger customers, but significant nonetheless. >> paul allen joining us there from sydney. spencer and marks and reporting in the hour with the fear of competition. the giant and british retailer expected to report slower sales. caroline hyde is here. not much optimism in the figures. >> if you are looking at tesco, same-store sales expected to drop. could be flat in terms of non-food sales, closing. it is always a brighter spot as they could see it growing to 2% but down from the previous quarter. getting the picture painted of who the winners and losers are here and just really pointing

out here that with tesco, it's likely we could see a continuation of how they are not able to distinguish themselves from their competitors. profitability could be dropping in the second half. in the market share is being eaten into. the discounters are going in at the bottom. they are bragging they've had their best year ever. they have more than 3% growth in the best christmas on record. they are on the top side. squeezing the food retailers and marks and spencer's, of course, dominating across the board and a big win. will they lose the top spot at the moment? >> they had a good christmas. business hereine has clearly been a big driver about what's happened over the

christmas retailing events. will it be a big factor in today's numbers? they had fared so well on the clothing side of things. this just helps to bring their clothes to the masses. they supported the overall business model unlike where they brought back in delivery charges. also there.ngs the numbers may not be that brilliant today but you have to see the choice that overall this company has been making and the clearlye been moving so and to online retail them the fact that they dominate, it will be paying off. it will be showing dividend in the future. to it. forward >> their prevalence in europe and in asia as well. what is the push into india? >> tesco is the first global

chain to enter india. they are making a real leap of faith. they withdrew from japan and scaling back from china. they are making a date that have a $110 million in a 50% unit deal in india. >> after they opened up the retail sector. thank you. >> the leading tech companies are in las vegas for the consumer electronics show. the t-mobile executive addressed reports that they could be taken over by softbank. years, the past 10 almost all consolidation was done for someone to acquire spectrum. all the people rumored to like t-mobile, all they have the spectrum. they don't have a business. movement,ny, this this revolution will continue whether we do it alone or in a consolidation, we will be at the forefront of what happens.

he had to be escorted out of and at&t party and missed out on his favorite act, macklemore. ofi was surrounded by a sea humanity that escorted me out. listen. i'm sure i would have done something different but it was not a stunt. i will tell you one thing. i was prominently displayed right next to concur -- he and photoshop self he and former sucking onitzer someone's toes in a hot tub. i've arrived. >> it showcases the latest electronics. since i'm looking to be an innovator in a new age -- samsung looking to be an innovator in a new age of appliances.

>> cbs has always been about things like tvs and mobile product but lately you can add another category, kitchen appliances. the home has become a world of opportunity for tech companies as things become smarter and more connected. one of the big players is samsung. they have some pretty ambitious goals. they intensely the largest manufacturer of appliances by 2015 which will be a bit of an uphill battle. they have to increase revenue by about $6 billion per year to displace the current world leader, whirlpool. how did they intend to do that? they have a bunch of product they are showing here in vegas. let's take a look. this is the chef collection refrigerator. it's not for everybody but it has a pretty interesting feature. this door has buttons on top. push whichever you want down the chamber becomes a fridge or freezer for as long as you need it. , stillhe water dispenser

or sparkling. let me show you what's going on inside this oven. because ofoer of and this panel right here. you pull this out and you have a giant compartment for the biggest turkey. we put it in and you have two cooking zones. you may have the asparagus here at 275 and the pork loin both cooking at two temperatures at the same time. a big name ineady washers and dryers been bringing new technology to that category as well. this means the tub will get deeper which makes it awkward to get things out. meanwhile, they have made this not so much deeper but wider. they can still fit more clothes it's hard to get them out of the machine. so how about the ambition to become the world's largest appliance provider? it wasn't that long ago when

people said samsung? smartphones? >> looking at the chef collection refrigerator and anna edwards liked the look of that. >> flexibility in the kitchen appeals to me. see it.thought i would it suits you. >> coming up, manus cranny looks at the signature item of a budding fashion label. ♪

>> time for today's company news. rolling out cheaper models to lure customers from mass-market like ford. will be revealed. they join mercedes and bmw to push models that cost less than half of the flagship cars. euro tell passengers will soon be able to use their phone at any point during the times. an agreement was reached between euro tunnel and vodafone.

samsung plans to release the by april. they are considering using eye scanning technology as they compete with the latest iphone. will be paired with a new wearable device. welcome back to " countdown." >> more problems for kanye west. it features a cartoon version of the wrapper and it was rushed to launch yesterday. his lawyers filed a cease and the creators. they dropped the west from the currency name and changed the visitor and to the fiction of a wrapper as a fish. -- the visage to a fish. >> this is interesting. it shows the low barrier to entry for a competitor to

bitcoin. they are already in trouble getting themselves out ahead of this. >> there's a good story linked to this one linked to snap chat. it is a multibillion dollar valuation by creating an app that appeals to teenagers that want to send on trackable photos that disappear in just seconds. this is a new app that offers a similar off the record promise and it is for the corporate world. >> haven't we all been waiting for this? confidential communication or racing just moments after? >> you have some very dark messages. >> all of my top sources. you go back and read the woodward stories and he talks by the flower pot. there are real concerns because regulators like to have electronic data captures and stored. $3.75 millionout

and they have a new app and we are downloading it now so we can play with it. others will go to market because you were getting confidential communication that is not actionable. if not this, someone else will be in this space and they will not necessarily be traceable. >> how will this he main stream? even if you have an account on this service, it looks as though you have something to hide. >> this is the marketing strategy. they want to go viral. they are not hiring a sales force. they want employees to use it reaching critical mass and everyone may be using it. you slide your finger over the text and it disappears after your finger goes across it. you could not take a picture if they were saying something incriminating. >> but the text is still all stored on servers.

who knows what the nsa can and cannot access. they tried to investigate what was going on at goldman sachs and there were these three ," let's discuss life. and then there is no intimidating evidence. flying close to the width there, thank you very much, hans nichols. something close to his heart. >> in the world of casual menswear, hoodies have never been a fashion statement and certainly not as a luxury gartman. at the about to change and will cost you a pretty penny. manus cranny introduces a $300 footie. >> may have gone from the com in board to dot under a year. is this style over substance?

>> we use the finest quality cotton, 100% cotton on the inside and it is cut like a suit laser. >> talk to me about the hardware because this is the bit that caught my eye. is custom made in italy. it adds that real touch of luxury. you can really feel the quality. >> i think that's the key about it. buddiesir university and that is where the luxury hoodie and the brand was born. social media has been key. the long came before they even had a finished product. the question for any new entrepreneur, where to get the biggest bang for my buck in digital? a partanted people to be of the journey from day one. facebook is really important. it's been really great. there's lots of descriptions

about the journey we took. building acomes to young luxury brand, brick and mortar is just as important. london men's fashion week, manus cranny, bloomberg, london. >> manus is here now. >> i went back and bought one. it's the packaging. it is the whole thing. .t does not take much >> look at that. >> it's all about the zip. it's all about the hardware. these are made in italy. they teamed up with liberty. it's very smart. >> you are sucker for liberty. >> when he mention hardware, i was thinking of a pc. >> it's all about the hassles. you know what? adjust caught my eye. >> what is it about fashion?

if you are not a pop up store, you are nothing these days. >> let's connect. they've done facebook, twitter, the blog. it allows them to connect with customers. they are smart, sharp boys. >> we all know about gordon ramsay. some say he's got a pretty foul mouth. another chef has had enough. find out who after the break. ♪

>> welcome back. i am anna edwards. >> i'm mark barton. pickslook at today's top from the newspapers. hans nichols, take it away. cracks the mp makes waves. she will be participating in a celebrity diving contest and she her swimwear. >> i don't know if you should wear a bikini well diving. >> i've had bad experiences with it. >> have you? >> have you seen "splash?" >> if i don't get it on page three, i get it here. cultural norms are different. >> members of parliament can remove their clothes.

>> a member of parliament did here on the celebrity jungle program. it is commonplace. >> judge not lest you be judged. >> tesco sales coming out in six minutes. this is in the guardian. businessest is now will be embroiled in this after david cameron potentially says we should be paying welfare benefits to children living abroad. andfit should not be paid they agree that they are being singled out and now they say that we might boycott your biggest british retailer, tesco. >> we get sales figures in minutes. s favorite people in the world. >> don't swear about telly.

she was asked about gordon ramsay, the michelin star celebrity chef and his approach to tv cookery. she said she does not think there's any excuse for swearing. at the young are watching, they will think it's normal area and approachsked about her to disciplining children. she uses a butter pat, like a cricket bat. >> a tap on the back of the legs. >> for that, you have an empire. [laughter] >> this story and all the papers today. marriage soaked in tequila. "diddy" combsn eleon, aup buying d

luxury tequila brand. relationship with citron. from one luxury story to another. flexing superluxury car brand. rolls-royce, ryan has an inside look at the phantom man has the chief executive with him. christ that's right. he is also here with me and we are in the phantom. the scar starts at just over $500,000. you've done a bit of customization. andes you a nice feeling makes this a magic carpet ride. >> this is not my car. this belongs to the ceo. not your car. >> it is a car lined up for me, let's say.

>> what newspaper would a rolls- royce have inside the car? >> i would prefer this morning's "the financial times." >> we will be talking about the rolls-royce numbers and how they did in 2013 and a lot more when we come back. ♪

>> the following is a paid presentation. >> it's about time. > the number one reason people have for not working out is they do not have time. >> i have four kids. i work 60 or 70 hours a week. >> i do not have the time. >> no time to work out? no problem. the home fitness program guaranteed to deliver hours of