valuations and there is a subtle nuance. ands about the speed propensity of tapering and its impact. you look at the dollar yen and emerging market currency. that touching a bigger story about what will happen to pull equities. we have time warner cable jockeying for the right price. all they want. >> they want more money, as is often the case. thank you. you are watching online retailers catering to the young. fairly young. yell -- really doing well. >> they are building and you see them online doing very well. they are at 2.7% and the numbers are in line.

the profit margins are down. the expectations are terrific for this company. 38% sales growth. 7.9 million active users. so much over the last year,. -- last year. we are not expecting much from the stock. >> let's get to caroline hyde. what we want to know is the private life. >> it is. atitics meets private life 4:30 p.m. will face theande press and allegations swirl about the love affair with the 41-year-old actress. and isaking a u-turn looking to embrace business. extreme measures for extreme times.

we have a 16 year high. four unemployment -- for unemployment. will have a look at what is ahead for the all-important talks later. >> thank you so much. in paris with the very latest on the president. >> we are watching u.s. retail sales ahead of.the vote -- ahead of the vote. they are both hawkish in their views. u.k. inflation could go back to 930. the futures are lower and asia and the topics markets hit the lowest levels in five months. european equities are lower and let's give you a look at what is driving the core markets.

lucent is more cyclical and lower their. -- there. you have a big italian day and we thought we would keep that up. lower,e the banks generally, in italy this morning. retail sales will come out later today. retail production will also rise by 1.4%. some companies caught my eye. a little bit smaller in size and nonetheless interesting in maine market movers. -- main market movers. the profits arising. -- are rising. barents is a builder in the u.k.. what we are hearing -- u.k. we are hearing about a strong finish to the end of the year.

it is more profitable levels and that is doing better than the ftse 100 this morning. michael page, this is a recruitment company. and iup seven percent think this place in the currency. fisher doesn't he speak mode tonight and that is ahead of the next meeting of the fmo see. you can see the overall trajectory. let's take it back 30 days and you have a slightly better complexion of what i have. it is all about the fed tapir and what it will do. it is beginning to pick through aluations people are getting reality check >> thank you so much with the latest on the

markets our next guest says that willmonetary conditions drive gains in equities. let's welcome alan higgins. sense of what 2014 will bring. at some point, there will be tightening for the fed. >> we think it is another good year for equities and we are dovish when it comes to the central banks. think central banks are going out of their way towards raising rates and in the u.s.. -- u.s. and u.k. we had tapering and bernanke's very long speech. the unemployment is falling quicker than we expected. >> it is getting closer to the threshold of seven percent or, that lovely canadian phrase,

waystation. a surprise for mr. carney to say that they will follow the u.s.. nonetheless, like bernanke, they are going out of their way. is, why?ion for us, the answer is, you are not seeing any bank lending these are different than the kind of recessions i'm used to. i'm used to the interest rate being crunched up and the economy falling. the interest rate drops and the economy popped back. this is different. >> the central banks are propping it up. the quantitative easing has if youod for equities look at long-term valuations

they are average or slightly above average. you have a remarkable situation where the dividend yields and the direct payout from the company is higher than the corporate bond yields. i have never seen that. i'm not too sure about marketing conditions and their share prices going up 15%-20%. >> there has been a cash holding why ceos and there has been a lot of focus on capital discipline and returning the money to shareholders in the united states. reflected.inty is >> thank you so much. investment officer stays with us. here's a look at what is coming on on the move. of 37% and beating estimates.

hollande is in the hot seat and delivers his agenda with allegations of an affair. is getting more than $3 billion.

>> in london, this is on the move. we are streaming on your phone, your tablet, and bloomberg.com and this is a stock where

watching. aftertock is dropping made an offer. the share price went up and the regulators are saying that they need at least 12 months to come out with a new offer and that put a damper on investors. 75%, according to regulators. the u.k. retailer released sales figures earlier this morning and we break down the numbers. >> good morning. we're looking at retail sales and they are 36%. they deliver 30% and the rest of the u.k. high street continues to cover -- struggle. ons is online and they carry boosting their online customer under 8 million active customers by the end of last

year and they had just over one million at the start of the recession. the trajectory is clear. there has been a big push internationally. >> air has. this is one of the most visited online fashion retailers on the planet. one third is the number of revenue that comes outside the u.k.. they teamed up with claudia schiffer and sponsored a tv show called "fashion hero." tell you that they lack competitive pricing in the region and it will take time to negotiate with local brands. they are growing as fast as they are at home and in the u.k.. it is a challenge and it is here. you see the stocks trading lower and this has been kind to the investors over the years. >> thank you so much for the very latest with the retailers. we are back with alan higgins.

like you for sticking around. we were talking about central banks and retailers. christmasat the showed us was that if you are not online, you are not ok. that is correct. i wish i had listened to my daughter. they weretastic and very early investors and saw the potential in it. you are quite right and it is a simple as that. people are more comfortable buying clothes online. people are very different. a lot of us foresee how genius it is. a lot of people do not have disposable income. well,ury is performing

notwithstanding china. that kind of middle market is slightly more expensive. glad you mentioned it. i do not want to get in trouble. it is slightly more expensive and it seems to be where people want to shop. >> when you look at how you take advantage of the technology in 2014, do you go for the retailers that are online or do you go for technology that enables them to be online? they can go and transfer the knowledge for you. >> i think that branding is important for companies. they are a great band -- a great brand and, after a sticky start, they recovered. the offering is good and i had a look at it. it is nothing that special.

>> is a strong brand. that is true. .t is not any different think that the brand, for retailers, is just as important. >> a little bit about cars, we're covering a trade show and luxury in the u.s.. we heard from lamborghini. they want to stick to the 2017 forecast to get an suv out. >> yeah. you're talking about a guy who collects 1970s and 1980s brand cars. gasoline below four dollars in the united states and you have a petrol economy. cheap.e seems relatively you have a little bit of a resurgence in the united states

i would love to see it what lamborghini does. they are my favorite car. i will have a look the gasoline price and the economy. at an much do you look index? how much do stock pick with industry making? andhey have two models customers in the street. and theyge portfolios financialsdirectly are a theme and we bought etf's. bought selected financial

stocks. we missed, tois, a certain extent, the gm and ford revivals. we did not talk about individual auto stocks. and yet, it is possible for anything in the states. some of the issues are the bts etf's.he >> we have a lot of banks reporting and a change of culture. we have a note that says that young bankers go home at 6 p.m. on friday and come back on sunday. >> it is a good thing and i hired some people from mergers and acquisitions in investment banks. they work incredibly hard and the most successful people have

a good work-life balance and it is a people business, at the end of the day. banks, it is a value story. it is a valuation that is and there in europe is an improvement in fundamentals. we like the financials. >> thank you so much for all that. the chief investment officer coming up, francois hollande is in the hot seat. there are allegations of an affair as he prepares to deliver his 2014 agenda later today. we'll have it reviewed next. we are about 18 minutes into the market and we will study how they are faring. we are seeing a bit of a selloff and it is valuations. we had a slow start to the year and this is the point your debts

is the picture of the tax, the ftse. -- the dax in the ftse.

>> welcome back. these are some companies on the move.

the all cash deal is subject to a review. rejecting the communications takeover offer. the biggest acquisitions since 2008. the local officer -- the local er is rejected. they should be out of the office by 6:00 p.m. on friday. wall street firms are working to improve conditions. francois hollande will deliver his 2014 agenda and the french president faces approval waiting and allegations of an affair. we have what to expect from hollande's speech today.

if we leave the economics, what people want to know our about his private life. >> this is the toughest week and the toughest day and the presidency for hollande. he is focused on his private life. this is the allegations of the love affair with a 41-year-old actress. she was featured in some of the election campaigns, even. if these rumors started swirling friday, a then, on magazine released pictures of them together with the allegations. there has been no denial. the president says that he floors the intrusion into his private life.

lady is in hospital with exhaustion on the back of allegations of this affair. leavems that the french that it is his private life. isa poll, they said that it his private life and, fascinatingly, particularly for those in our part of the world, it has risen on the back of these allegations. it is a phenomenal time here in france. bill clinton, when there are , he was impeached by the house of representatives. not so in france. there is questioning coming from the international press and the french press in his personal life. how much does that flow into his political life?

read that he gained in the polls. how will that change his political stock? he has a great way to make an impact and it depends on whether .e takes it more so than ever, the eyes of the world or on him today. >> they are. he is desperately hope laying -- hoping that they focus on his political statements and not the questioning that he will have under intense scrutiny with his private life. we ares of the politics, getting a u-turn, it would seem, the man who promised to attack the rich and promised to go after the financial world as his number one at the seri -- , is now having a

change of heart. his political power and his views of the popularity are at record lows. 15% of the polls were in his favor. poll taken% in a yesterday. the reason he is embracing business is to get popularity up and turn the economy around. will be 50 billion euros in terms of extra savings and he is also saying that they are going to make a responsibility packed. they will cut regulations and higher. is all in the details with the business leaders. >> caroline hyde is there with the latest. bid isup, a $61 billion rejected.

rejected warner cable the deal. there he tells -- the retail prices are up 35% and we have more on that.

>> welcome back. and bloomberg's european headquarters in london. markets are shaping up. the indices are on the lower side. in general, a lot of the equities are at the highest level since 2000 and eight -- 2000 date and there is concerns about the good start to the trading year. today, the have

retail sales raising one percent in december. but seven look at the currencies is 1999. these are the bloomberg top headlines. has hisch president 2014 agenda today. rose.de's popularity he had an affair with a 41-year- old actress. hollande's approval rating jumped two points to 26%. that is according to a poll. house and senate lawmakers agreed to a 1.1 trillion dollar tol to fund the government december. on budget is scheduled laps january 13.

assess.ies called to announced that it was an attempt to stop a military coup. they say that it is against an islamist committee. of charterion communications is backed by a billionaire. he calls the growth inadequate and market senator join us now -- our markets editor joins us now. >> i think they're holding out. the number in the report is a hundred 65 and the offer from chart is a hundred the two. -- is that 132. charter is at -- the number the report is 165 and the offer from charter is 132. look at the protagonist. john malone, we know is an asset wrapper. build his cable

assets. john malone's company has 25% holdings there. -- istledge is that twc at twc. have a look at this. and got a knock on the door somebody made a lowball offer. they want premium assets and they are not going to get it at bargain basement prices. what do they want? 12 million? cable assets in new york. cable assets in dallas, that is what charter wants to build upon. optionsare charter's right now? >> they are saying that they want to have finance in place and they want to leave all options on the table, francine.

one thought is, could charter build it up? could they do a deal that way? we have bigger and and you know the whole argument we had here with you, me, guy. do we still need cable tv? you still need a cable subscription? you have netflix and online. the view is, you are going to see, globally, more than 50 paidon people, having to subscriptions and doubling up. there is a logic. they say there is a logic in this move. they are going after these cable assets. have you been on the phone with your customer service agent? i have. time warner cable rates at the lowest customer service

experience and the second worst in cable. customers are very upset. >> all right. thank you so much. we have the latest on time warner. retailersng, online -- online-only retailers slated 25%. we are joined by stephen. thank you for coming on. they are going from strength to strength. has done so well in the last couple of quarters. placed,nk they are well where the market is right now. iny are well-positioned where they are priced and all of these are different. are they such a success story?

they go to an age group that has not been cap before. they are completely online and keep costs down. >> i think they are well- positioned. they know their target demographic and they go after the 20 somethings. they are well-positioned to go after that. they are in digital marketing. they're being very aggressive. are targeting the under 25 a 1930s. underhe under 25's and 30. 25's and under 30's . >> their brand is different because of the answer. >> they are unique. they offer brands, essentially platform,/e a department store. -- eight platform/department store.

primark, as well. we see that they are taking a share from h&m from primark. as well as a lot of menswear. if you are a rival and you look at them, is there anyway that you can take this away from the model? , will you not online make it in this new environment? >> i think shoppers are demanding access to retail. that could be on the high street or on the coast. like the over lunch. they have a multi-channel offering and the cost of entry. you have to have that. are very much exposed. >> investors should be looking for the online offering.

>> absolutely. having a strong online component , and aobile component tablet component, andy smartphone component, those are big indicators of success. a good job at filling up their profits fast and they are very convenient. it is not just price that the shoppers are after. it is convenient access. >> it looks good. it is stuff that suits you and you like the way it looks on you. gimme me something that retailers will not make. it will be tough for retailers. .hey cannot get on there's feet -- they cannot get on their feet. again, for the 20- somethings. this is for the target demographic of people who are

gaining household income and are getting more disposable income. when you do not have a legacy, captured they have not the shopper mindset of knowing how disposable income is and shopping there. amazon captured that and getting is veryoppers important. it is something i worry about with a retailer like mns. >> thank you very much. stephen with the retailers. coming up on the program, we will have more on the big business of german brewers and a price-fixing scandal. -- forgiant is buying $1.3 billion.

>> in london, this is on the move. we are on bloomberg television and streaming live on bloomberg.com. the pulses coming up. we are joined by my coanchor.

and wese is coming up are joined by my coanchor. >> let's talk about france. the president will face the cameras after the news of his alleged affair and he wanted to be talking about the economy. private life is going to dominate. we will talk to the socialist party. we'll ask her what it means for the president and her country. we will talk about france with monte. former prime minister says that france is lacking in their commitment and is not doing so as of late. we will get his take on the and the banking union that is not a banking union.

the lack of a backstop and the resources is a big problem. andill get his take on that the political newcomer in italy onunveiling his jobs plan thursday. what does mr. monte make of that? we will get that out. a strong a tying theme. -- italian theme. >> guy johnson with the pulse. constructive of an suv in 2017, according to a ceo. they will get the first suv since the 1990s. aluminum is the material of choice with ford and the company entiree it with their

lineup. they introduced an aluminum body for the f1 50. f150. digital stocks and smoke alarms. they will be subject to regulatory review and will close in the next few months. joining me is ryan chilcote. us.executive showed that we arty have in our house. stuff that we already have in our house. >> what makes it smart is that it has wi-fi and you can react to it by hearing the alarm and monitoring it on your computer or smart phone. it you interact

with the other products. the other product is the smart thermostat. you can monitor it with your pewter or smart phones. learnsnterestingly, it your behavior and makes suggestions to allow you to save money. the funny thing is that these work well together. if your smoke detector detects a gas leak, and can tell the thermostat to turn it off. that is where it gets interesting. these two devices interact together and it is pretty interesting. who would have thought that a thermostat could be smart. clearly, google does. >> this is because we are more connected and we think these devices will run our lives. it was telling when these came and here is a ceo behind this product.

tell the product. it comes and it looks a lot like iphone. they have the first 18 generations of the ipod and he got bored. he retired with another guy. on a smartd working net of things, these smart devices. andas at a tech conference after thinking it over, he immediately said, i would like to invest in that and they got together. you are right that it is extraordinary. you can see the product and the apple heritage teamed up with google. andle invested early on google, if you will, makes money off of selling this product to

itself. there are other venture capitalists that are getting 15 fold returns. for all the venture capitalist who missed out, this is a real opportunity. >> for me, it is surprising. they are going for devices to use in your home and it would be a more natural fit with apple or samsung. but google is getting into the engineeyond the search in ways that we can only imagine. >> you think about a smart television, a guy told me that google makes a download advice that you can put into any hdmi dumb tv make your smart. innovating in expanding their universe beyond the search

engine. for your house. thank you ryan chilcote. a german brewery cartel has been fined 106 million euros for fixing the price of beer. seven people were find. let's get to david tweed for the details and the reaction in berlin. a brewing cartel. i love the sound of it. >> it seems fairly lighthearted and it is very serious. we are talking not about domestic brewers. we're talking about international brewers. anheuser-busch is one of the biggest sellers of beer worldwide. it'd not have to pay a fine because they were a whistleblower 18 months ago. has been going on is that people inside the brewing operations have been having personal contacts and been

colluding to raise the price of beer. 20,000 beer -- 20 bottles of beer costing one euro more. the reputational risk is that the amount of money we are talking about is not a huge amount of money. the reputational risk is severe. iny are household names here , in, in germany. i'm talking about companies that are venerable and are being hit by a drop in consumption of beer in germany. it means that the prices are low. >> speaking of beer prices, what are they like around europe? >> there's a little bit of research on that one. the most expensive year, not surprisingly, is in norway.

here is one for caroline. if she wants to whistle watch is reporting, she has to pay five euros. -- if she wants to whistle while she is reporting, she has to pay five euros. our europe editor in berlin. stay with on the move. our final thoughts are next.

>> welcome back. athletes will descend for the winter olympics. withames will be filled athletes who have dedicated their lives to the sports. is silicon valley veteran using the tricks of the valley to get into the game. >> hello. my name is paul. in real life, i am a venture capitalist. this year, i decided to go out there and make it into the 2014 winter olympics. >> i'm doing this full-time. i'm going on the transport. it is really cool. it moves very quickly and someone to die. i don't like downhill skiing.

started -- i started this by default and it is my sports now. i started skiing in april. you have to go to a small nation. it is a drastic change in my body and i lost about 35 pounds. it -- to give you perspective, it used to take three hours for me to do a race. it takes about one hour now. and has really come down to the last minute. i compared to the jamaican bobsled team. it is amazing to be part of this. there is nothing like enjoying the sun after a long day of practice.

>> for a recap on the market movers, let's check back in with manus cranny. this year, i want to join the olympics. talk to me about the markets. >> you're not letting me. it has turned around a little bit. there are a few comments on the european central bank as things are better. the recovery in the euro area and the average growth may not exceed two percent. you have the european union and i still go back to what i said in asia. keep an eye on the dollar and the emerging markets. they cannot go from one day to the next day. valuations do matter. >> thank you matter. -- they do matter. manus cranny. stay with bloomberg tv.

guy johnson and i are back next. you can follow us on winter. i will see you in just a couple of minutes. . .

>> facing the cameras. francois hollande's alleged affair and not the french economy looks to dominate his press conference in paris today. will ask the former italian prime minister about everything from europe's economy to extremist clinical parties. -- political parties. >> and google pays $3 billion for a digital thermostat maker. good morning, everybody. you are watching "the pulse." we