>> day three from doubles -- davos. the manager talks about the impact of tapering. >> what we believe is needed is a reset of the way in which the economy grows run the world. pulsingymaking -- makers making headlines in day davos. doubles -- >> microsoft shares rise as the ready --oftware maker >> and the rich and powerful

like to play in davos. will take you inside the party scene >> welcome to "countdown." >> is 6:00 in london this friday morning. bloomberg reporters are studied by around the world. francine lacqua and hans nichols are live from davos with some of the big interviews. >> mia saini has the details on samsung's most recent profit reports. and we are focused on the ukraine. it is called in kia but the protests are protesting -- spreading be on the capital. >> here's the lineup for

countdown. will speak with one of the 80 billionaires in davos. he earned his billions from shipping and gambling resorts. >> and will sit down with one of the biggest investors in renewable energy. and in the second hour, join me for our exclusive chat with the biggest refiner in western europe. davos wheredate at global leaders gathered for talks on the key political business and intellectual themes. francine look what is there now -- there are a few sore heads on friday morning. >> absolutely. >> speechless. we are feeling fine and willpower through the day.

davos will be all the better for our presence here. >> this is what you do when you are a teenager. i have to see hounds's moves -- hans's moves. i had an exclusive conversation -- she arrived in davos. we went into 30 minutes of talking. i asked if we were too complacent. she said there are many risks in the background. we need to make sure we reset the global economy. >> complacency is a risk. it is one of them. what we're seeing at the moment, to go along with the optimism, we are seeing recovery and consolidation. that is our analysis. we are also seeing risks that should be of concern. the old risks that are not all

sorted out. and new risks as well. needed of a reset is the way in which the economy grows around the world. >> blitzer with a reset. -- let's start with the reset. >> the risks are too financial stability. which can still be an issue, especially if there are bubbles developing. .e have massive unemployment north of 200 million people who do not have job at the moment. a growth rate that is going at to slow a pace. have an unbalanced growth and uneven growth. there has been some rebalancing, but we are not there yet. the question is, will it last when the recovery does consolidate ? in terms of new risks, we have

tapering >>. -- tapering. it willspillover effect have on the emerging market economies. >> are you only concerned about it in europe ? or is this something that can spread? >> we see inflation rates a bit lower than where they are targeted. i don't think anybody can challenge or argue with that. as a result of that, if it was to last, particularly in the euro area, there is a risk that core inflation is also lowered. that has consequences in terms of interest rates. it has a consequence in terms of the cost of debt and burden of debt. on corporate as well, which has a heavy debt load. increase there was a shock -- in

case there was a shock, which is something we have to consider and imagine, not that it is in the cards, then we have the risk of deflation. >> these were, it's -- topics we touched on. the emerging markets. something that still concerns her for 2014. let's bring in hans nichols. >> we had jack lew talking to tom keene. the sense is qualified optimism. but a little confusion about the numbers, the data that is coming in. that is true of china and the united kingdom. he backed away from the idea that seven percent is the threshold for eight -- an interest-rate hike. -- tom sat down with keene sat down with jack lew, his sense was we would have a

robust 2014 if we don't mess up. negotiationseans in capitol hill on the debt ceiling. >> i think the u.s. economy is doing much better. we ended the year strong. we started strong, as opposed to last year, when we had headwinds from budget cuts. this year we have tailwinds. fundamental core growth rate. the challenge is to make that keep going. avoiding any of the kind of self-inflicted wounds we saw last year like the government shut and fight over the debt limit. >> what you see is the idea we are in a much better position this year than last year. no one knows, at least for the u.s. economy, white we 13 was so good. and whether these tailwinds are lasting. >> i had a conversation with

investors who are little bit concerned. >> frothy. that is a great word. >> i see you partying. >> i did not get into the google part. i don't the guy would have gotten in. >> i saw pictures of the mckinsey party. --this is like television. live television. >we are trying to get a sense of the pulse of doubles -- davos. >> there is hans letting loose. >> cranberry juice. >> we will get back to him in a couple of minutes. you can see more of the exquisite conversation with the imf's erector -- director tonight at bloomberg at 7:30 p.m. london time. >> people dancing and looking at images, the morning-after without the music, it is cruel.

>> you said in your memory, one had a sore head in davos. >> looks like the microsoft overhaul is starting to bear fruit. with more is caroline hyde. >> record quarterly sales. $24.5 billion. is $266 million per day, $11 million per hour. >> someone has been on the track you later. -- on their calculator. >> the desperation to catch up. from software into hardware, it is working. xbox was flying off the shelves. they must've sold well. that dragged up the whole hardware unit. also cloud, internet-based software.

this is paying dividends. their new strategy, the reorganization of their products, the office 365 which is the internet data storage -- all of this seems to be paying off. it wasn't that long ago that they had to have a than hundred million dollar charge on the tablet they lost -- $900 million charge on the tablet they launched. you can't argue with that. still no ceo. >> we still have more to talk about with regard to the ceo and nokia business. >> let's cross over to mia in hong kong. >> hi there, guys. happy friday. is can blame -- that crimping demand for samsung

products. they posted the slowest profit rose since 2011. in at $6.7 billion on the back of sales of $55 billion. challenges include currency movements that cut out money. % of itsany gets 80 sales from outside of korea. bonus payments to workers to celebrate the 20th anniversary of the chairman's management strategy. and a boost in marketing as the company prepares to release a product that is making its big release in april. >> mia saini live in hong kong. >> back to dallas to speak to one of the 80 billionaires in attendance. he earned the billions from shipping and gambling resorts.

♪

>> time for today's company news. the largest u.s. drug

distributor has brought a german rival. this will allow them to buy as year in$10 billion a generic jobs -- drugs. sales at starbucks trailed shopping as online habits lead to less business. and the argentine billion air is be -- bidding for all of greece's airports. there are seeking -- he is seeking greek airports as they push into southern europe. welcome back to countdown, i am an edwards --anna edwards. >> at least 80 billionaires are sending a double's we are joined by one -- descending on davos. we are owing by one.

camila -- a flagship casino in manila. thank you for joining us. ,ou said you want to focus more that the growth will come from the ports. but this year, it was the casino that led the drive. >> i think casinos will have stronger growth in 2014 and 2015. growth, get on to the we have to talk about the big players in the casinos. you are saying in asia, it is four times the amount. the whales or vop's -- vip's are bigger in asia than in the u.s.

million hong kong per hand. >> when people talk about asian gambling, they talk about macau and singapore. how does the philippines fit into the mix? . we are trying to fit in. most of our revenue comes from chinese highrollers, either from singapore, taiwan and china. that is what drives the market and that is what we cater the business to. we have to grow our infrastructure. we have a competitive facility. other than -- other things did to follow. >> how long will that be? >> another 5-10 years. >> in vegas, they like slots. they like blackjack. do people play differently?

is noopinion is vegas longer about gambling. about -- it is about shows. gaming revenue is flat. >in asia, it is about the gamin. >> will change? >> i'm not sure. we have a casino already and to come up with shows -- is a big investment, $100 million to $200 million. >> who are the main people visiting your casino? >> we have the mass club which is local. ethnic chinese from all over asia, whether china, taiwan, this is the bulk of our business. >> let's get to your ports business. -- has it been an happy new and how can you see it growing?

>> the last real growth year was 2010. our growth is coming mainly from new terminals. new acquisitions. global growth will probably be to present this year -- two percent this year. i consider trade to have been in a bubble. ringworld is still recove from that. >> we were talking about the credit situation around the world. what is your view of the world, post crisis? business hasy is, been run by monetary policy since 2009. -- liquidity has reinstated the bubble, so to speak.

saying when the party is going to end. my feeling is absolutely, it will and. -- end. >> you can also go broke if you call it wrong. >> i feel will blow up but i can't say when. >> were do see the bubble? valuations.sset >> with a bubble be burst when the fed starts tightening? >> i don't know if the fed can control every step of the situation. they will make a big effort to do it. i was dumb luck -- wish them luck. >> where would you like to invest $100 million? >> i would say the philippines, which has been having a good run. also nigeria. >> given the complexity?

>> absolutely. -- 2produced to million million bill earls -- barrels of oil. the government is more serious than in the past. it is a very powerful consumer economy. >> i was disappointed. i was expecting you to say blackjack one evening. >> i don't gamble. >> smart man. thank you so much. up, we have plenty of exclusive interviews from davos. >> thanks francine. >> are emerging-market currencies continue to suffer. coming up next on countdown. ♪

>> welcome to countdown. tapering has been felt in countries like turkey and argentina. this may signal the beginning of a top -- a toxic financial environment. john is here with the details. a lot has been taking place in the past 24 hours. >> things are getting

interesting. we saw some big mark critz -- moves in emerging markets. let's have a look at argentina, south africa, and in turkey. the turkish lira down 1.5%. exacerbated by the political crisis. use of a central bank, and then try to intervene -- you saw the central bank come in and try to intervene. the south african rand, very similar picture. dollar strengthening iran weakening. -- and rand weakening. thelar situation with argentine peso. they have a problem with insulation. big big problems in the likes of argentina. >> it isn't just a problem for emerging markets

? the temptation is to try to tie something to this. you saw selloff in europe. data.el was the chinese the preliminary reading. this shows you how touchy some investors are. the biggest risk this year for investors was china. it was almost double the second concern, the eurozone risk. >33% of respondents thought the eurozone -- china was a big risk. it is about where we go from here. people are starting to get a little concerned. >> live in douglas was one of the biggest -- davis with one of the biggest investors in

renewable energy. ♪ >> china says the japanese prime

minister was abating -- the invading the history of aggression when comparing china to japan. speaking in davos, he said that germany and the u.k. went to war to fight strong economic ties. they say there is no need to increase darling costs in the u.k. has beguned a debate on forward guide this -- unemployment fell

faster than expected. the syrian opposition is scheduled to begin talks with representatives of the government today in the first negotiation since the conflict directed three years ago -- you rock did three years ago -- even erupted three years ago. welcome to countdown, i am mark barton. >> and i am anna edwards. let's check in with francine in davos. is the chairman and ceo of spain's largest power company. thanks for joining me on bloomberg. before we talk about renewables and the renewable sector, the mood is optimistic. >> there has been a tremendous

change in the last year. last year, people felt upset about what was happening. this year is more optimistic. -- last night, i had dinner with the heads of the latin american countries. same thing in the rest of the areas of the world. the urine haveng to go, there was talk about a spanish bailout. do you really think the eurocrisis is over? mentioned, the spanish prime minister is a person who is reflexive. he had a lot of information. he will make the more right decision. he did. is most difficult decision with the bailout.

we recognize that was a success now. spain has moved out of the crisis. -- spanish companies visiting the most important financial towns. i predicted it would happen. there was a concern about whether it will be real. spain is growing. we are booming. >> yet so many ceos sit on cash. >> our plan was clear. we have been passing through the crisis without much effect. -- 12 billion euros. we make important acquisitions in the middle of the last decade, and the u.s. and u.k.

we have good expectations. we have growth in britain, and the u.s. in brazil and mexico. >> you don't want to make acquisitions because there is nothing out there? >> it is because we feel our money is better spent other ways. [indiscernible] why buy things when we can make our own growth? >> there are always gross -- negotiations and the renewable sector. that it is is let'stic in the sense try to reduce co2. and let countries do that in the

most convenient manner. there are other sectors that are making tremendous omissions. emissions. because of the crisis, we talk less about climate change and renewable energy. do think it is a mistake? and it will come back when we see growth? the debate on climate change? >> if, you see the situation in certain countries they are not talking about it but they are reducing emissions. that is the case in the u.s. -- they are transfer me from coal to gas and reducing emissions by one third.

renewablepromoting energy but we are not growing. we are burning coal more than ever. as a consequence of the policies. leave it to the member state to achieve the 40% target. -- there are transport and other areas that we could be doing a lot of things with. >> investors say it is confusing. how would you explain what has happened in spain and what will come to investors? >> in the past, mistakes have been made. renewable technologies that were not mature. they created tremendous numbers of subsidies. it has been on our balance sheet

for large utilities. the government tried to reduce and minimize that. so, it has affected us -- nothing to see with this decision. we have not been benefiting for all these crazy policies. to write -- two wrongs are not making a right. fine.m is to act onolution is those energies which are most expensive. >> piggy so much -- thank you so much. i will send it back to you guys. >> francine, thank you very much. joining us from the slopes in davos.

>> let's talk about ukraine. we will talk about the latest developments in the capital, kiev. that is next. ♪ >> 10 today's company news.

the south african government meet with this meets with unions. it affects the minds run by platinum miners. south africa's responsible for 70% of production. lou fonda has asked the court to block the worker strike -- looked on the has asked the court to block the worker strike. they had planned a one-hour walkout next wednesday. london. six: 41 here in the antigovernment protests have spread beyond the capital. ryan chilcote is here. >> protesters have occupied government headquarters. all the important part is in the west of the country. why?

the governors were appointed by the president. the protesters resent that so they resent the governors as a result. you have a schism between the west and the east. they don't get along. the president is from the east. they are ethnic russian and pro-russian areas. the west of the country is more western leaning and ukrainian speaking. no civil war, country of 45 million people. at most we have had 100,000 people protesting. it does reveal the taking of the -- one of the fault lines we are -- lane out --. playing out. >> tell us about the truce. >> the government hasn't talked about it at all.

according to the opposition, they have agreed to hold off on violence will the government has agreed to not use libor rubber bullets -- life or rubber bullets. and to convene the parliament. repealing the at anti-protest laws that sparked this most recent wave of protests. also, a no-confidence vote to the comp this government -- to the government. most of the parliament is pro-government. >> the no-confidence vote failed last month. >> unless it was something the president can save face. --early elections are likely unlikely. the prime minister ruled that out. electionsu have early

where the center of your capital is occupied by terrorists, as he put it? >> the protesters say they will camp out until then. -- veryry key of ask kievesque. that is not an issue for the government. they want to get beyond the violence. that will be key to watch on tuesday. is what comes out of parliament enough to stop this? -- is aboutdoes the the pull of west and east, versus the particular government? >> there are several issues. west and east is part of it. another is you have a government that is not like a lot of people in the country. they see it is corrupt. they want a new one. they have had a lot of

volatility. they have throughout government and presidents. a lot of them see this as an opportunity. correspondent has been writing about ukraine. he says they are terrorized by a group of thugs who freely admit they are being paid $25 a night to stare and be people who look like protesters. not a friendly place. >> it gets tricky. i have been to a lot of these revolutions in post-soviet countries. this is a common thing that happens. you get protesters paid by both sides. the pro-government protesters show up. based -- then you get the clashes. it is not peaceful, it is violent and they can be removed. >> it looks like the microsoft overhaul is starting to bear fruit. here is our european is this

correspondent caroline hyde. we were talking about the success of games consoles on the cloud. >> it has been paying off. the strategy. the hardware is paying off. xbox one slot the shelves. >> they overtook sony. >> the lot -- they won out over the playstation. also the move to cloud computing, with ibm. microsoft was quick to catch up and has made inroads. sales have increased. we saw a record sales of $25 billion. profit increased five percent. many thought it would decline. have office 365,

the cloud, your data being stored on the internet. that is winning. but saless it xbox, of its tablet has doubled. they had to take a charge because it did not work. device units up 68%. that overhaul at microsoft is starting to read dividends. we are seeing one of the biggest transitions in a decade. after stevearch ballmer said he will leave in august. >> any idea? >> this is the big question. we have the main cravers -- players. such an ella -- satya

nadella. vesper --op and hans vesberg.op and hans the cloud business is on the rise. i wonder whether that pushes things -- he said he would say at microsoft the matter what. we have no clarity on who will be taking over. microsoft does seem to be more.ed more. -- reaping isevenue increase for 14% not bad for a company that is a giant in this industry. much.n, thank you very theloomberg got in on

google party in davos. looks like no one at this party is opting for the early-morning panel. that's why no one turned up today. to watch people -- it is mean to watch people dancing without a drink in your hand, the morning-after. we will take a short break. coming up, the: brothers and brothersin -- the coen and press again with a new movie. ♪

>> welcome back to countdown. i might barton -- i am mark barton. --anna an edwards edwards. davos but start out in -- let's start out in davos. what do you have for us? ipad.put it on the german]g

>> he believes there is a leadership role for the united states. he does not think he will get a fair trial. security and phones are the background of some of the talking. i have been asking executives whether they have a blackberry or iphone. great topic, which is why we chose the story. we have the most powerful business leaders of the world. they must be concerned about security. >> no one has admitted to what kind of security they have. i was talking to jamie diamond, who has a blackberry. 60% in davos, the that is when we will know it is the death knell.

the question is whether you have a balkanization of the internet. if the u.s. cannot secure server data, physical all around the globe and country? in that case, you might have more barriers and walls than openness. a question of whether companies can take advantage of the scandal. the digital agenda commissioner was saying, this is a great opportunity for european countries to do business. >> they are talking about security. swiss companies are talking about that and servers being in bulk -- you cannot get to it for jurisdictional regions -- reasons. on the other hand, you have company saying you want data to be free. that is the speed of the internet. that will bring you more revenues and information. >> this is the story that we

picked from german and swiss newspapers. nsa, and edward stone. -- snowden. >> i was wondering whether anybody invited edward stone into davos. maybe a bit tricky to get there. thank you very much. >> you are watching a panel yesterday. was talking about how doesn't use twitter or facebook. -- why areng this you raising this? >> just thought i'd bring it up. >> he felt like he didn't have to use them. had, i like to do my thumbs on friday. the latest coe brothers filmn. we have been talking about 12 years a slave. they have been giving five stars to this.

accomplished in ways that will have you laughing from toes to scalp. you the team that brought "fargo," they are saying this is a classic. but no oscar nominations. that has shocked many critics. >> this links to a story that we talked about. super foods. quinoa. comes a wonder grain from ethiopia. this raises questions about a country with many, many problems feeding its own population whether there should be exports. it is being considered as a new

superfood. >> are you going to mix it with your bacon? >> we continue. they with us for another hour. ♪

>> date three from douglas -- davos. we talked about the impact of tapering with the imf plus managing director -- imf's managing director. >> we believe the reset is needed. >> policymakers also making headlines. jack lew tells bloomberg he is confident congress will overhaul the nation's immigration system. >> microsoft shares rise after hours. they report record sales as steve ballmer readies his exit. >>