business correspondent, caroline hyde, jon ferro and our europe editor, david tweed also standing by. jon, let's kick it off with you. south africa is going to be more in focus over the next 24 hours. >> what we don't want is a repeat of 2012. lonmin today, miners start to go on strike. they want wages doubled. can the miners absorb those extra cost? >> let's get out to david in berlin. you have got the spanish unemployment numbers breaking across the terminal now. how do they look? number once again over 25%. this is a problem for spain. the real issue in spain is structural unemployment. when is it going to start going down? some of these people have been unemployed for more than two years. a lot of them are going off jobless benefits. that is bad for the economy. we have got what tony blair says

about it. >> just to confirm those breaking numbers, in the fourth quarter, first in the number --es in at 26 point 03% 26.03%. that is a serious level of unemployment to deal with. staying above 25%, that is the challenge. i am keeping an eye on the swiss company logitech. this is the maker of mice but they also -- a large portion of their business is in tablet accessories, music accessories and speakers. upgrading their overall view in terms of guidance and sales. $2.1 billion and their third- quarter numbers actually be. .- beat when that opens, we will get to it. caroline, let's talk about easyjet. >> the business travelers are certainly being wooed. because 20% of their tickets are

business travelers. people want the fast-track. stock down more than 2%. sales missed. they grew seven percent but there was tough competition. you have ryanair and norwegian air shuttle's trying to cut prices and also the comparison is tough. the olympic's are luring people into london at the end of 2012. there were 60 flights canceled in the last three months of last year. also there is this concern about the widening loss. fromoss could be anywhere up to 19 million pounds. that is more than 50% of where it was last year. >> let's just bring you the price for logitech stock over nine percent. we also had the french pursuing -- purchasing managers index for manufacturing. that beat estimates. john, it is all about the

chinese. >> without a doubt. disappointing on the downside. that is a concern for investors. let's check out how it is impacting the markets because we are expecting a lower open here in europe. what have we got? the ftse down by 0.1%. the dax down by 0.3%. here in europe, we are also pretty busy. data heavy, we get that emi from france and germany and the eurozone as a whole. my focus today is spain. look at the spanish borrowing costs. coming down, coming down, coming down. this is not the concern it once was. we stood talk about it in davos every day -- every year. it is not about borrowing cost though, it is about the economic reality in spain. for a lot of people, things are still pretty hard. unemployment up 26%. how is it impacting the euro? you $1.35, upuys

by 0.1%. that unemployment number out of spain does not move this one lower. it is pushing higher. this does not provide southern comfort for the likes of italy or spain. >> thanks for that opening round of the markets. let's head straight to davos. francine is standing by, the woman who makes the cold weather look just impenetrable. francine, what is the focus today? >> [laughter] you are too kind. trust me, it is very cold. time with the of iranian president yesterday. he is here to do business. he is here to sign deals. we have also spoken to some oil companies including france's largest oil company and they are clean -- keen on getting back to iran. they had to pull out in 2009. they are meeting the ceos of a lot of majors here in davos. they have just started the

meeting. it is very difficult to say whether we will actually hear something from them, whether anything will be signed. certainly, this conversation is going and this is very important. they are trying to attract business. what the other issue is is sanctions. will they be able in the next 12 months to find some kind of timetable so that the sanctions are lifted? i spoke to tony blair about what needs to be done and whether it is businesses' job to put more pressure on iran. quid pro quo, i will give you business or comment drill some oil in iran but at the same time i need to make sure the sanctions are fully lifted so you need to do your part. >> it depends on whether iran is prepared to take a strategic position to give up nuclear weapons ambitions and step back from being on the nuclear threshold state. the previous negotiation gave them an opportunity to conclude the real deal.

we shouldn't be in any doubt at all, the real deal is that they step back from that threshold. if they don't, the implications are very serious in the region. other countries will try to acquire the same capability. then you have even more instability in a region already unstable. >> we will see if president rouhani is able to attract businesses here. he is speaking to the whole of davos in about an hour. >> listening to some of the conversations you have had, there is this theme that we are not in crisis mode, the crisis is over. inequality is one of the most pressing issues. that seems to have come through from the entries i am listening into with you. >> inequality would be the legacy, the unwanted legacy of the crisis. we spoke to the secretary- general of the oecd. they are concerned that the heads of state are not tackling with enough passion the problem of inequality. this is youth unemployment, the widening gap between the haves and have-nots. there is still big pressure from

davos saying, we are not in crisis fighting mode. we are not firefighting but we need to make sure that europe is competitive, that people get back to work, especially the youth. we also have a little bit of fun here in davos. it is not only hard work. hans nichols, our man on the ground is having a lot of fun as well. case youre, and this man on the ice. i am standing in front of a giant icefield which is overtaken right now my audi vehicles doing test driving, i striving. -- ice driving. here is an we have opportunity for companies to use their brand. you see it all around town whether it is kpmg, gm, all over the place. >> ok, look forward to seeing you behind the wheel. bem just devastated not to at the goldie hawn meditation special.

coming up, don't miss tom keene's interview with the seat -- cisco ceo live from davos. is in "on the move." ♪

pre-k's welcome back to "on the move perko -- >> welcome back to

"on the move." i am manus cranny. bloomberg has access to some of the most interesting thinkers. great programming. we are waiting for tom keene, editor at large to get cisco in the chair. john chambers coming up very shortly for you. don't miss that interview. but give you a quick check on the markets. markets are a little bit later today. it is really in response to what is going on across in china. london down, barely moving. virtually flat. resources and travel are down. what we have got is china, the preliminary purchasing managers index coming in, showing a contraction. that upset the markets somewhat. as well as that, you're looking at spanish unemployment, really

dominating the agenda above 26%. the markets virtually unchanged at the moment. let's have a look at some of the foreign exchange boards. dollar just the coming back a little against the euro. 1.3599. again, virtually unchanged. 1.6589. overall, would you can see is the usa today. we are going to have jobless claims. this is the driver for the dollar component. existing home sales and leading economic indicators also due to come out. keep an eye on dollar/sterling. 16588. ian mccafferty says business investment is feeble, hence the reason might -- the reason why stimulus needs to stay. let's give you some company news this morning. a successful bid by china's

lenovo to buy the low-end server business of ibm may trigger a u.s. security review. lenovo is likely to pay up to $2.5 billion for the ibm unit. a deal would be announced as soon as this week. the growing chinese investment in the u.s. has prompted national security concerns. hyundai reported fourth-quarter profits that missed analyst estimates. eroded earnings of south korea's biggest carmaker. thechairman forecast weakest sales growth in eight years for 2014. a chief executive is said to be planning to propose that the new york stock exchange be the primary home for their shares. milanonne will recommend as a secondary listing at a board meeting next week. ok, they are ready. we're going to go head-to-head.

one of the best conversations of the day, tom keene live in davos. you have a very special guest. >> good morning to you. good morning to everyone worldwide. at, chiefannual visit executive officer of cisco. forget about the stock price, he can't talk about earnings. front and center in the buildout worldwide of all that stuff behind the magic we do. it is early in the morning in davos. it is the perfect time to speak the smart play solution with fabric interconnects. that is your world, isn't it? >> i think you said everything the audience wants to know about that. >> you were talking about the buildout where you have become the key player of the infrastructure of the internet. what difference now versus five years ago? >> everything has changed. every device in the world is going to be attached.

in 1984, there were 1000 devices attached to the internet. today it is 10 billion. there are 10 billion applications, 10 billion devices downloading 77 billion applications. this internet of everything where it ties together every device in the world will change health care, education, job creation, etc. it is the big topic here at davos. >> you're a member davos five years ago. nobody knew about cell phones and all that. ceo's got it with a vengeance. here is my 15 second instagram imovie video which comes to you from john chambers. how is your world linked with the consumer world by what i am doing here? >> we provide almost everything from the concept about clouds to video transmission. that is done over cisco equipment. what we do is bring it to life and make it so that you get the right information at the right time to make the right decision. we bring it to life. we build these devices that can

literally download the entire netflix library in one second. >> when i look at not the criticism of cisco but the question of competition, you told parents recently every three or five years there is a new wave of competitors to tear your world apart. how do you respond to that in 2014? >> you have to get market transitions right. this is what cisco does. from 15 to 20s years ago, none of them exist. you had to transition. >> when did you know that wang was toast? >> i knew that it missed its transition. dr. wang and i had a discussion. the only time he ever got mad at me. that we had to move from a minicomputer company to a software company. dna. that deep in my cisco reinvents itself every three to five years.

we come out of the market even stronger. next year we have the chance to become the number one i.t. company. this internet of everything is a $19 trillion contributor of profits to business. that is more than the entire internet from its inception by five or 10 fold. >> i want to talk about the concept that all of technology is facing on revenue decline. is the first order revenue decline feature china, lack of emerging market growth, the , why side, the unit side are revenues down? >> we had 16 quarters in a row of growth and record quarters, many of those. we are in a short period of lumpiness and it is due primarily due to emerging markets. it is a different issue. 80% of our business is new every quarter. -- onlyy like ibm, all

about one third of their business is new. >> wall street journal said it well but bloomberg didn't say it well? >> i am sure you would have said it better. they said emerging markets would be very bumpy. we are the canary in the coal mine. we are the first one to see it turn out. cisco has always emerged from these and we will come for this one in great shape stronger and better. you have to reinvent yourself as a leader and a company. >> how are you going to do this for the shareholders? you have done a terrific job. continue forward? >> absolutely. you will see us not only returned 50% of our free cash flow to shareholders, you will see us go well above that. >> what is your dividend growth model? how do you frame dividend income growth? you have to reinvent yourself every five years. do you say, we're going to do

10%, gdp, how do you grow? >> we are currently at 3%. you will see us grow the dividend this year. you will see us also acquire companies. you will see a consistent financial plan. i think he both find the shareholders like that very well. the last 10 years, earnings are up 350%. revenues are up 250%. we have got to get the stock up. >> the stock has moved up. it has rolled off a little bit recently. do you and your board model the growth of the dividend -- i am fascinated by this question where tech people have to act like 3m or emerson electric and say, let's do a 10% dividend growth. >> we say, how do we create wins for our shareholders? we are already number one with customers. we are number one with partners, number one with innovation. we have to be number one with shareholders. how do we make our shareholders

win as we do? we create $10 billion of free cash flow what year. >> i know you are going to talk religion here but it is a question every listener has. why does america so week in wi- fi? "r as the germans say :wee-fee we don't do wi-fi well in america. what is taking us along? >> today, we are number one in wi-fi, mobile wireless, small sale -- wi-fi can't i get link it in the state of texas or near west virginia? >> you should be able to. interestingly enough, at davos we are talking to countries around the world. president parking korea will be the first one who transforms our country around the internet of everything. >> why can't we be like south korea? governor talk to the

of texas, they created one third of the jobs in america over the last 10 years. they will probably become the first digital state. west virginia could learn from that. i think we need that as well. >> media types toss around the word "cloud." big data and all the rest. define the cloud for our viewers. >> the cloud is very simply the ability for the viewer to get access to any information anywhere in the world. the cloud allows you to do that very cost effectively. what is exciting, the word cloud, mobile, big data, cisco is the network. it used to be a processor- centric environment. big processors, mainframes, etc. it is now mainframe centric. question, are there other edward snowden's out there that could make your life miserable? >> i am a believer in transparency. we don't allow any government in the world including our own any

unique access to our products. there are no backdoors. we don't help any government in the world. if the russian government trusts us, the american government trusts us, every government around the world i think you will find will trust cisco. that is why we will become the number one security player. we think this creates an opportunity for us. to becomepossibility a number one security player. >> john chambers, thank you for your visit here in davos. a beautiful day, not as spectacular as yesterday. a little colder today. we will have much more for you through the entire day here in davos. >> tom, look forward to those commerce asians. fasten -- those conversations. fascinating conversation with the head of cisco. later in the hour, we had back to davos. francine lacqua is going to be sticking with the intesa sanpaolo chief executive. we have a rocking lineup of

guests coming live from the world economic forum. don't miss the next half-hour. what a beautiful day in davos. ♪

>> i am manus cranny in london. this is "on the move" on bloomberg television, radio, strumming on your phone, tablet and bloomberg.com. two companies for you, the top

and bottom of the stoxx 600. logitech, these guys make everything that goes into your tablet, keyboards, covers. they make mice. speakers, music, that gives you a flavor. up $2.1 billion. third quarter beat. logitech up 11%. that is the biggest rise since april 2012. from mice to education and the owner of the fp. pearson delivers numbers this morning. looks like they have got headwinds in the education business in the united states of america. online subscriptions doing quite nicely in terms of the fp. that stock down 5.5%. those are the top and the bottom of the stoxx 600. we are going to take a little bit of a break now. make sure you stay tuned. we have the intesa sanpaolo ceo joining francine.

it is a busy 30 minutes, one that you don't want to miss. live from davos, francine lacqua will be with you with those two guests. stay with me. we will talk about markets before the end. breaking ahead in davos, 2014. ♪

>> welcome back to "on the move." china's manufacturing may contract for the first time in six months, adding to stresses in the world's second-biggest economy. estimates.nalyst a number below 50 indicates contraction. ukraine opposition is ramping up pressure against the president. riot days and nights, the select as many as five people dead.

2000 people were injured. special presidentingwe have a y this year. the rainy and president, the first time -- the iranian president, the first time in a decade we have had an iranian president. do you want to do business with iran?

the presence of the president is great news. we hope for a positive conclusion. i do not think you can expect anything to happen he for the conclusion. >> -- before the conclusion. i have no meetings. frankly, it depends on the political situation. aside, howl solution big the beer run market the? iran how big could be market be? >> it is the largest market in the middle east. i ends -- i am expecting the

market to move up i 50%. there is a big opportunity for the iranian consumer and the carmakers. >> the french brands have been popular in iran. they were not exposed to the u.s. market. with the sanctions, it was impossible to do any business. >> what is your ambition for china? in five years? >> china is the largest market in the world today. we sell 30,000 imported cars from south korea and china. our milestone is to reach in china as soon as possible the market share that we have normally.

3.5 market share globally, 3.5% market share in china. is 150,000.ep it is a small first milestone. >> does that put you in any difficulty? >> they have a long tradition. when nissan entered in china, they were already a partner with honda. --petition is as tough nissan had no problem. nissan to have a very strong growth in china. >> we talk a lot about disruptors. who do you consider your biggest rival? largeste the fourth

group. we are selling more than 83 -- 8.3 million cars a year. motors,ehind general toyota. we do not have one rival because we are very special. >> everyone always has a rival. >> in our case, we have benchmarks. there are some car companies that we follow strictly because they are doing a great job in some aspect. companies in front of us are our rivals. >> what is the european market going to look like? >> i think it will get better for the first time. >> thanks to growth or incentives?

>> there is a point where you will have to come back. 2014 will be the first year of the positive evolution of the european market. not very big, one percent. we will get back slowly to moderate growth. >> with different performances between the countries. >> you overall trend -- the overall trend will be positive. you may have different levels of growth between the different countries. overall, the european market has been cleaned from all the sales that do not correspond to the levels of the markets. so much youth unemployment, who do you sell the cars to? slow.rowth will be very

the same class of people that have money. employment of the youth. the wealth disparity is creating a little bit of a handicap. a lot of discussions taking place. everybody is conscious of the fact that these problems cannot remain without heavy consequences on the economy. >> we have seen some high- profile resignations. how do you deal with stress? >> everybody has his own way to deal with stress. you are doing the right things

for the kind of life that you are having. learning how to make some distance between the reality you are facing and your own thoughts. if you are from mine all the time in every issue, you will be all thed -- front line time in every issue, you will be exhausted. it is very important for coping with the stress. --n you manage to companies two companies. have the opportunity to live both in japan and france. looks i should also ask you -- >> i should also ask you how to do with jet lag. a great lineup of interviews after the break. we will be talking to the intesa sanpaolo chief executive. that is coming up.

♪

>> welcome back. we are live from the world economic forum. i am joined by the ceo of intesa sanpaolo. thank you for joining us. the first time i meet you, you .ook the helm four months ago

the situation was a little bit messy. what is your main priority? >> to prepare a bottom-up business plan. i am working on industrial plan. 6000 people within all of the different business units. ,orking with the managers proposals in order to exploit the value and potential of our group. the target is to -- higher than 10%. >> when will you have the details? >> the restructuring would take place -- we are best in class in europe, lower than 50%.

the main target is to increase revenues. class.y, we are best in low interest rates. the future for me is quite different. .e have a lot of potential division.investment >> one of the things we have been exploring, we are -- do you focus on shareholders? do you focus on your employees? is there one thing that has to be done? we focus on the numbers, but there is how you deal with those signs.

>> i am working on motivational people. -- i need to motivate people. why i involve people in the business plan. the employees have to be part of the business plan. the involvement with the proposal from the people is the way we can increase motivation within the company. a really import and italian bank -- important italian bank. it is what ceos tell us every day on an hourly basis, this is the biggest challenge is that you need to make sure your best people stay motivated because they drive the company. >> absolutely.

people-- motivation of is the key driver. you cannot give top down decisions. so you can exceed the expectations. be an4 is going to interesting fiscal year for banks. there is a lot of regulation. -- there is always little bit of a discount. my opinion is that we are -- we are the only one already ofplying with the target 2018 him and not the target of 2014. -- 2018, not the target of 2014.

we become stronger and stronger. there is something related entirely on conditions. .he provisioning is good our common equity is 11.5. the possibility of having a good success.

from a -2.5% in the consumption. percent., one >> it is the first time you are in dalvos. what are you most looking forward to? >> very smart people in the world.

it is a very interesting situation. >> thank you so much. the ceo of intesa sanpaolo. we have some great interviews lined up for you. >> take a break, get a couple of coffee. confirmed they are ibm's ibm -- buying server business. the deal is priced at $2.3 billion. there you go. johnson.it is guy you have been talking about big blue. on talking about

some of the b's we have on the program. vos tojohnson is in dat rub shoulders with people with big checkbooks. anthonyto our clays, jenkins will be joining us. ,- then we go to barclays anthony jenkins will be joining us. what does he see in barclays future? and we it to the billionaires. -- and then we get to the billionaires. markets remain a significant part of the story. and then we have the iranian story, which we need to cover as well. ulse."morning on "the p

>> we will head back to davos after the break. hans nichols has been taking some driving lessons. this is something you simply cannot miss. ♪

vipsvos is swarming with and they all come with their own got a lesson on how those chauffeurs would handle and icm bush -- an icy ambush. when you were in an armored car, you are always safe. power, power, power. there is a roadblock in front of us, someone with a gun, we do not wait for this. faster. change gears. >> power, power. aggressive.

>> how was your insurance? any good? >> hans nichols, i am seeing you in a whole new light. you have a whole new career. >> i hope you enjoyed that. there is an overall marketing point and that is corporations to promote themselves to the wealthiest customer base. so we step out of the way are in front of a giant pasture. it has been glazed over with ice. they are preparing the track. executives orng

anyone else who wants to sign up for something just how to drive. you see corporate sponsorships, major brands, the entire village has been transformed. majornow are hosting events, private dinners. anybodyyou seen actually driving? anybody famous? >> we have been waiting here all morning. the break will come at 1:00. that is when executives will start driving. those hard-working executives do not want to be caught on camera in the latest audi on a frozen pasture. >> i will tweet out your package.

they would bloomberg all morning. pulse will bring you a panel with the iranian president. ♪ . .

>> davos date to. we are live in the swiss alps with another all-star guest lineup from the ceo of barclays to the mayor of london. the man everyone wants to speak to hear, iran's president is about to tell the for him that his country is open for business. >> the deadline approaches. ukraine's opposition issues an ultimatum as talks fail and clashes leave at least five people dead. good morning. welcome. you're watching "the pulse." we are live