>> all aboard two. boss where world leaders in business tycoons gather today. we have an all-star guest light them throughout the morning. >> and look at who else showed up at davos. matt damon is pushing for universal access to safe water. the chief executive of pimco resigns. founder bill gross tweets that his batteries are still really charged and ready for another 40 years.

hello and welcome to "countdown." >> a warm welcome to the program. bloomberg reporters are standing by throughout the world, bringing you the stories that will drive your a. -- drive your day. a look ahead at some of the big interviews we have coming up for you this morning. 40 miles west of davos, key talks are ticking off. >> first let's give you bit more detail of what is coming up in davos today. we are talking to a number of big names out there. we will kick it off on the program. the ceo of india's largest software company joins us. we will hear that in just about

20 minutes time. axel weber will be live from .omino's -- davos the russian deputy prime minister is live in the next hour. davosncine is live in with more details on what is coming up during our program. good to see you. 2500 participants, more than 50 heads of state, davos is just getting started. we will tell you about the interviews we have and go through the agenda. hans nichols is here on the ground with me. it is snowy, a little bit cold, but there is so much to do that i know we will not get tired.

all the big thinkers, all the newsmakers are here. are here onebrities behalf of their charities. >> they are also here to bring money and raise awareness. and i caught up with matt damon, i ask him what his goals are, what he is trying to achieve with this ngo in terms of clean water. let's have a listen. >> 780 million people on planet earth don't have access to water. we've got a number of corporate pepsi, ikea, a bunch of them have stepped up for us and been really great. they really get it and are taking a really proactive role, and it's really wonderful. is going to require a lot more than that, obviously. >> your first impressions here at davos? it has been a pretty good start. rackspace for your time. mixes celebrity and

seriousness, they are trying to promote something beyond their own brand, larger causes. psy.w you caught up with i know he was tweeting and taking as many pictures of you as you were of him. some years they strike a balance, and some years they don't. that is one of the challenges here. how do you talk about serious issues in the midst of celebrity, some 200 million in corporate sponsorship. we see all the corporate locals around. it is a challenge. >> it is a challenge. i caught up with psy yesterday moves.wed him my gangnam he was very impressed. also not showing off, but showing the world what they have, because everyone who has money to invest is here. a --more serious note am

on a serious note -- >> he shows up today, president rouhani, and gives his main speech tomorrow. what we're going to see is an effort, talking about these six months when there is an open window on the sanctions. what he can do to unlock the money that is a broad and what iran can do in terms of exports. they can expert petrochemicals -- export petrochemicals. they can open up the lines of commerce to one day the more open and join the community of nations. >> it will be interesting to see . this is the first one in five years where we don't have a crisis, so there will be some interesting debate, which may give a little more visibility than it did in the past. >> so much of the past has been reactive to the actual crisis of

the moment. there is a general feeling that the crisis is over. angela merkel, even though she injured herself in a ski accident here in the house, she didn't have it on her agenda to come to davos. can there be more forward thinking, 1, 2, 3 years out? again, that is another challenge here. biggerink there is a contingent then there was in the past. thank you so much, hans nichols. of exclusive interviews and exclusive features. we have plenty of interviews coming up on the program. >> you just told us that you moves,psy your gangnam and now we're not going to get to see them. we're going to keep pushing for those on future programs. >> where did she go off interviewing psy the night

before davos begins? from the world's biggest bond manager to a diversified investment firm, he now resigns at chief executive officer. we know he's going to stay on as an advisor to the german insurer allianz, but do we know the reason for his resignation? ofthere's going to be a lot speculation as to why he did resign, but we really don't know the reason. he did write a four-page internal memo to pimco employees and he said the decision to step down has not been an easy one. what we do know is there are going to be a big reshuffle at the top of him co-. haschief executive officer been appointed, and there will chiefs in investment

addition to bill gross. the new deputy chiefs will be there. other speculation is that he will be carrying the blame for the record redemptions we saw coming out of pimco in 2013. $30.4 billion was actually withdrawn from those funds. what we do know is that bill erian were close , every second day they swapped over sharing the daily investment strategy meeting. they came up with that term the new normal back in 2009 to describe a world with low returns, increased government , forions, regulations developing countries. onthere was any speculation

a clash between these two, they have both put out statements praising one another. , pimco is has tweeted fully engaged. are 110% charged, i and i am ready to go for another 40 years. given he is 69 years old, that k.uld take him to 109, mar >> he would probably be the oldest mail worker in the world. is very familiar if you follow u.k. politics. >> extremely familiar. thehe moment he is head of -- he is based in london. i imagine he will probably be moving to california. ivascyn is in charge of the beat 97% of its

rivals. he and his co-manager have been named by morningstar as the top fixed income manager of 2013. quite a few credentials behind him as well. >> see you later, david tweed. >> the business elite will be gathering in davos in switzerland, but nearby there's another meeting to discuss the political into the war in syria. 40 other countries and organizations are attending that meeting. john has the details. >> there is so much riding on this, 100,000 lives have been lost in this conflict. hundreds of thousands going into refugee camps. one in jordan is now the fifth largest city in the country. you have 40 countries and

organizations there, the u.n. and the u.s. and russia as well. is the really telling absentees. iran will not be there. william hague, the foreign secretary of the u.n., says it was the right choice. they are not ready to say that a transitional government should be something we should all look for. >> a transitional government made up of those diverse groups. that is what is on the table? >> that is the aim of it. ,ou have the opposition there and the assad regime still want access as the top man of the state. there's the question of how fruitful these negotiations can be. what is expected across the board is that today's conference is the beginning of a process, not an end to the conflict. what we all want is an end to this conflict.

>> john, thank you very much. >> coming up, michael bloomberg withill gates sat down emily chang and betty liu about their concerns for the future. >> the first and most important thing is every kid getting a good education, and in some parts of the world they understand that, and in some parts of the world they don't. sadly, in america, we don't seem to. >> coming up, ibm earnings painted a dismal picture with the seventh quarterly state set -- sales decline. more on that, next.

>> time for today's company news. sheryl sandberg is one of the world juntas female billionaires. facebook closed at a record high yesterday. the 44-year-old chief operating officer has a stake in the company, managing $750 million. fiat has obtained full control of the chrysler unit in the united states. they reached a deal with the united auto workers health care trust.

predicts profit may fall short of estimates. the news comes as the company cuts more than 1000 jobs. the company is coming off three straight years of declining sales. welcome back to countdown. ibm shares fell after hours after the computer company posted sales that missed analyst estimates. demand for service dwindled. this report by caroline hyde. orders oftraight falling sales for ibm. sales down five percent for the full year. said we are forgoing our bonuses. to put it in perspective, $28 billion for the fourth quarter, that is bigger than last year's gdp. they are just not living up to

expectations. the reason we are not growing anymore is companies that work on a general basis don't need service quite so much. totead, we are all looking loud computing. you don't need these huge juggernauts of hardware. we talked to a tech analyst recently who was saying there will still be demand for service , it is just that cloud companies would buy them instead of businesses. what is ibm doing to turn itself around? >> it is trying to get in on the cloud service act. inroads, butng they made a big purchase, $2 billion last year. they are looking to ramp up and steal back from amazon and other countries -- companies

that have been leading the march on them. supercomputertson , setting up an entire new business unit. answersly this computer questions in conversational language. getting rid of lower volume businesses. yesterday we reported they are close to selling their low-end servers in particular. sales are down but profits are on track to rise. i read a report that estimated 2.5 quintet billion bytes of data are created every day. that is 25 followed by 17 zeros. world's data has been generated in the last two years. just ahead, we'll get back to

davos. ♪

>> welcome back. the time in london is 6:21. we are headed back to dad vose now where political and business elite are gathering in the very scenic swiss outs -- headed back

to davos in the very scenic swiss alps. --we are joined by the ceo the mood has changed since the same time last year. we had a large selloff in the emerging markets. will there be more confidence in 2014? >> we are more optimistic about the future. we have new emerging technologies, which is good for us. we are predicting better growth for the world. >> are we too complacent? when there is not a crisis, people think everything is great, at least we are not in crisis. >> i still see caution.

we are going through very tough times. exuberant. we are not overly optimistic. there is a certain amount of caution in the decision-making. but we are looking at the future with confidence. >> last year we were asking our participants and guests if they would invest a million pounds in arts, stocks, or bonds. what are you doing this year? >> i think we are focused on real estate holdings. that has done very well. in europe, germany, and india, that has done well for us. invest for the long-term, never even the medium term.

[indiscernible] toyou have said you wanted turn the company emphasis to the bellwether status from three years ago. are you on track? >> our goal last year was 5.8%. now it is almost 100% more on growth terms. we have gone from 23.5% to 25%. had about 50 clients this quarter. i feel that we are on track. >> what is the timeline as well? >> in the future, you can never predict, but right now looking at the future, i think we are on track. what about privacy on the mobile phone because of the nsa scandal? we have constant

conversations on these matters, because we are the custom in sub data in the software, and they are connected to us. we have to implement new technology, new ways of securing our data. >> this is a fingerprint. on a continuous basis, it is very important for our clients. >> is it the snowdon effect? clients, these are the global 500. they are very concerned about their data and security. we are working with him very closely. that means is conversations have been going on for a long time.

>> interesting. you are here at davos to get a sense of how to help your clients. number one, our clients are here, so this is a good opportunity for me to meet with our clients and get a sense of where they're going. believed that we should balance performance and progress. we founded this foundation 14 years back. you have to spend 2% on security activity. >> thank you so much for that. nar

anna, i will send it back to you. >> we will take a look at 18 million heirs who expect to get even richer, when we come back. ♪

>> i mark barton in london. these are the top bloomberg headlines. hollywood star matt damon is taking center stage in davos. he received an award as cofounder of a nonprofit organization, water.org. pope francis has sent his blessing to davos. he urged the leaders to ensure well.umanity is served he called for a new political and business mentality that takes ethics into consideration. as the business elite gather in

davos, peace talks between syrian president bashar al-assad and opposition groups began. at least 40 countries including the u.n., russia, and the u.s. hope to create a transitional government and end the three year civil war. hello and welcome to "countdown." >> 6:31 here in london. time to head back to dad vose -- davos in the snowy and very cold resort. now a bloomberg exclusive story. billionaires expend -- attending richer inplan to be 2014 with a few key that's. francine lacqua and others are

live from the slopes. towe have been talking shibu. a lot of ceo's are here for business and also to gauge the mood. the mood seems pretty firsttable here, the meeting in davos where we have not had a looming crisis. 80 billionaires on the ground. , the bring in matt miller head of the billionaires team for bloomberg news. great to have you on the program. a billionaires, we have couple of younger ones. hitheryl sandberg, facebook a record high and as a result, the money she has him selling facebook shares pushed her over the edge. we have also been asking

where you would put 100 million dollars. >> almost everyone said stocks. everyone is extremely confident in the equities market. they believe interest rates were main logo in the central banks will do a lot to continue to stimulate the economy. most said they would invest in stocks. no one said bitcoin. they are pretty bullish about the environment. banksre expecting central too big repaired to take on a little bit more risk? >> they are prepared to take on a lot more risk. billionaires made almost $500 billion around the world. do aprobably expect to little bit like that, probably not as much. we see the same return on the s&p 500 as we did

a year ago. activity.y more m&a we will talk about what him in a deals might be lurking around the corner. activities and day activities might be lurking around the corner. >> this is a mood to gauge her. -- guager. gauger. ofwill find out what kind growth we are looking at. >> they are trying to look each other in the eye and look the politicians and government officials in the eye and find out where other people are investing him a what are some other smart moves that people are doing, and trying take that and use it throughout the course of the year.

>> we have a lot of emerging- market billionaires. 19 billionaires from india, about a quarter of the world possibility and errors that are here. you have about 20 from the u.s. you also have quite a few russian billionaires that show up. >> that is more or less like last year? >> it is almost exactly like last year. be 80-85 plus a couple of hidden billionaires lurking around the halls. >> we want to find out about those hidden billionaires. thanks so much, matt miller there from bloomberg. exclusiveme first and billionaire -- interviews. that is a little bit later in the program. >> with the rich and powerful dissenting on davos, what is the

most luxurious hotel to do? in unlesso getting you are invited. international correspondent hans nichols was. ♪ isthe intercontinental davos easy to defend. be quiteseems to expensive. you have the perimeter set up. area,articularly secure we have more than a handful of heads of state coming. >> what does that mean, more than a handful? greg six or seven. orwhich ones -- >> six

seven. >> which ones? >> i can't tell you. the intercontinental the newest name in a valley that knows luxury. a 10th floor bar to watch the city below. with a dedicated cigar lounge. start off-season, suites at $1100. much? >> i can't tell you. >> more than the normal market rate? >> you go to monaco during the formula one, you will see the price is very popular. probably higher, yes. the hotel is banking on the conference market from asia and east.ddle-ag

orif you were one of the six seven presidents staying there at the intercontinental at davos and you weren't put in the presidential suite, would you feel slighted? >> i would. speaking of the world economic forum, hans nichols will be live from the intercontinental hotel later on in "countdown." just one month after reports that he may leave ubs earlier er willpected, axel web be live with francine lacqua. deputy, the russian prime minister is live next hour on "countdown." >> just ahead on the program,

it's a one-of-a-kind conversation. bill gates and michael bloomberg tackled topics from education to tech. we will hear a piece of that, coming up next. ♪

>> time for today's company news. 1700 jobs in the aerospace division. they will make delays in new aircraft programs. the stake in eurosport. the company will boost its holdings from 20%. the discovery ceo says they are to competitively in the race look at more tv sports rights. toyota and honda set production records at their north american plants last year even as the yen weakened against the dollar for a second straight year. gains were not matched by records in sales. welcome back to "countdown." >> 6:42 here in london. poor, saidisn't in a michael bloomberg in a discussion with bill gates and

betty liu in new york -- technology is and enabler. i think the basics really haven't changed. education, business, philanthropy is still about people looking each other in the eye and listening to each other, working collaboratively and collectively. you have to be careful and not just think technology is going to do everything for you. at six matter. -- ethics matter. the education of our kids is the most important thing. there are enormous changes in the job prospects of people at every level him and some will lead us down a path with some very severe problems. nevertheless, the first and most important thing is every kid getting a good education. in some parts of the world they understand that and in some parts of the world they don't. sadly, in america, we don't seem to. we keep falling in the rankings. we are lucky to be in the top

30. that does not bode well for the future, and we have to pull together and get away from this partisan stuff and start devoting the resources we need if are going to have a future. >> il, you are passionate about training young people as well, particularly in computer science. is a topic mike and i think is incredibly important. we have been willing to create let'sontroversy saying help teachers be better. let's try out new approaches. the status quote was pretty unsatisfactory. technology is going to help, particularly for that motivated learner, but how do you increase motivation wadley -- broadly? problem.stly a human >> bill gates and michael bloomberg talking there to betty liu. we will have weekly employment numbers at nine: 30 this morning. john is here to take us through

what we are expecting. will that number get close to the 7 -- 7% target? not really a target, more like a threshold. inching ever closer to that threshold. what a difference six months makes. we could come down to 7.3%. we conducted a survey at bloomberg news just last week and 60% of responders think that forward guidance could be challenged with next month's inflation report. when the imf comes out and upgrade our growth forecast to 2.4% for this year, a lot of are asking if it can come sooner. >> had you keep interest-rate expectations down if you don't

reassess forward guidance? >> lucky bank of england. what is happening on the inflation side, you will see it come back down toward its target and the bank of england is starting to look a little more like the federal reserve. you look less at the unemployment side and more on the inflation side. whether they would actually move to change the threshold six months afterward, you would have to put a question mark on that. someone from hsbc was suggesting it might not be as simple as do they drop the threshold or not. things are more nuanced and perhaps they will step away from it slightly in some way. >> think about what the fed are doing. they are looking at the unemployment rate and saying it has come down, but look at the quality of the labor market.

what they could do over here is look at the level of wage growth. virtually half of the level of inflation. real incomes are actually being eroded month to month. wage growth is becoming more and more important. some politicians are talking about a cost-of-living crisis. we absorb a right hike if wages are still flat? the potential for mortgage costs to rise as well. rate expectations in the money markets have actually fallen for 2014. maybe the message is getting through. >> the big focus will be next month and the language that comes out on the back of that report. indicating there was not going to be a dramatic increase in interest rates.

our picks from today's newspapers. stay with us. ♪

>> welcome back. >> i'm mark barton. 6:50 here in london.

time for a look at today's top picks from newspapers. is here and we are joined by francine lacqua on the ground in davos. is the newave today zürich newspaper. it is interesting because it is you look at a lot of the more mainstream international newspapers, they have a lot of focus on davos, the fact that the crisis is over. they decided to put on the front page a picture of a sausage vendor. the fact that they need help from the government, they say that this little sausage company will make a lot of money because the most and the world economic forum will give them a lift. says thisn basically tiny shop will get a real boost from davos.

interesting to see that locals are also talking about davos. there is a general sense that although the topics change, we talk about the crisis, we talk about technology, we talk about eavesdropping and how you protect data, there is a lot of focus on what the world economic forum actually brings to davos. the population here is doubling for this week. >> it's getting a lot bigger, that's for sure. making the davos agenda relative to the man on the street, thank you very much. >> this is a rather interesting take by the independent. made ined by the u.s., china, consumed in l.a. apparently small from china is driven -- tripping over the pacific ocean to california.

-- drifting over the pacific ocean. the study is done by u.s., chinese, and american and even u.k. scientists. they are saying how manufacturing in china has reduced overall pollution in america, but the western side is still getting these sulfates dribbling over there borders. if you are working for the big tech giants, perhaps you should be concerned and get one of those face masks our friends in china are wearing. >> watch out, real madrid. the daily telegraph sport section says that real madrid are interested in launching a than waynee other rooney.

he has 18 months left of his contract. doing badly this season, thank you very much, caroline for raising that point. i wasn't going to say that. if manchester united don't reach the top four this season, it means they won't reach the champions league. then it might be difficult to sell wayne rooney. do you think somebody will be breaking glass in case of an emergency? of alex ferguson, and it does say, in emergency, break glass. x even though the share price in new york is at a record low, give them time. that is my advice. know many of us have dabbled in social media, so i

thought it was interesting to bring to everybody's attention a few wise words coming from the church in the u.k. churchgoers and church officials in the clergy are being given advice on how to use social media and some of it translates into other fields of life. reads, bless me father, i have tweeted a right stinker. they don't want to stop people who work for the church for amusing social media, but don't use it in an urge to be liked. the first of what they call nine commandments on modern communication. don't rush in. always think, is this my story to share? what i want my mom to read this? ?hat i want god to read it

, you you are on twitter might want to look into the full nine. what will other people think if they read your tweets? rushing in. i'm following that advice. >> francine is over in davos and tweeting like crazy. >> if i could feel my hands, i would tweet a lot more. coming up we have an interview with the ubs chairman. he spoke with us last year. personperson -- the best to gauge what is going to happen in 2014 in terms of growth and where you want to put your money. that great interview is coming up in just a couple of minutes with axel weber, right here live from davos 2014.

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