>> deal and no deal. vodafone shares slide as at&t says it won't make a takeover offer. liberty global agrees to buy ziggo. oil giant in trouble. weak start for shell's profit warning. bg says earnings will be lower than expected. shares have fallen today. the grammys, music awards or business awards? founderdiscuss with the of the mercury prize. good morning. welcome. you are watching "on the move"

live from bloomberg -- you are froming "the pulse" live bloomberg european headquarters in london. francine lacqua is off today. let me tell you about the data crossing as we speak. the number coming through at one end .6, that is slightly ahead of expectations. let me show you a little shot of euro-dollar. this is what is happening in the last few minutes. catching a bid before that number came out. we are 1.3704 but we have extended that move. we are up by 0.2% on the day. that is the economic news. let me move you through to some of the corporate news we are watching today. our top story, at&t ending speculation for now that it is looking to buy vodafone. sayinge saying -- at&t it has no plans to make a takeover. we have learned that john malone's liberty global has agreed to buy the dutch broadband provider ziggo. that's get more on both of the

stories with hans nichols in berlin. hans, let's kick off with at&t. >> it has been a remarkable morning. at&t is down 5% i believe. let's walk through the last 24 hours. in dollars, the at&t ceo met with the european digital regulator. this field speculation that at&t was close to making a bid on vodafone. this morning, at&t ended that. they put something out right at 7:00. it was quite final. here is what they said -- that prevents them from making a claim for vodafone for six months. this story has shifted into a vodafone story. if vodafone is not going to be acquired, what might they acquire? they may be looking at ono, the spanish cable provider. that could provide them some

sort of foothold in the spanish market. they're going to have a fair amount of cash from this deal. at the end of february, they finally unwind their relationship with verizon and the united states. that is $130 billion. $80 billion of that will go to shareholders. $10 billion will go to investment. goings a company that is to be able to raise money for potential acquisitions if they want to expand and if they aren't going to be acquired. some say a potential name in the frame could be liberty global. it is bulking up. walk us through that deal. >> what we have with liberty is they have finally made a tender offer at 34 euros per share for the remaining stake they don't own, about 70%, in ziggo. this is a dutch cable provider. what is interesting about this deal is that malone appears to have succeeded where carlos slim couldn't when he was making a play.

kpm is more of a wireless company, but what you see is american and south american companies make plays for european telcos in part because the competition in the home market is heating up. also because what is happening in europe with the expansion of 4g, it is an opportunity. there are opportunities for growth here. the question of who buys what and when and do they get regulatory approval, which brings us back to davos and conversations that randall stephenson had with the eu commissioner, what else did they discuss and is there something else on the block for at&t? potentially e.e. in the u.k. >> it has been an active quite some time and continues to demonstrate that there is more to come. thank you very much indeed. let's turn our attention to the emerging markets. em stocks fell to their lowest

level in more than four months today. currencies once again under pressure. manus cranny joins us to put this into context. taper etc.? -- fed, or is it political problems in countries like south africa and turkey? charged andt is sparked and driven by number one. we will get around to reconsidering the structural issues when the washout is complete. we know that there are countries under pressure. the turkish lira has less reserves. have a look at the three worst-performing currencies. currencies are fundamentally challenged. what you are seeing right now according to pimco, they're calling it a stampede. they say the moment investors are not differentiating, they are just going em, sell, sell sell, and they are not bothered by the quality of names.

that is the same view at seen from credit suisse and ubs. we will see a continuation of that selling process according to credit suisse but we will come out the other side. we are not done with this move on the downside yet. discerning around to or discriminating more clearly. argentinians have gone for devaluation. the turks went for intervention. the rand sees lows with mining strikes. there are big issues at each of those worked -- worst-performing currencies. what you have got here is currency called being torn up and thrown out the window. i don't think we are anywhere near done the end of this. it has more to do with taper than china and structural problems but the market will come back and discern. politics as well. >> any sense that the fed may change its tune as a result of this or will it continue to focus on domestic matters? inthe fed is not interested

terms of what happens to markets outside. is the fed concerned about anything that goes on outside? the answer, no. they had their geo-mandate which is about unemployment, growth. >> you could make the argument that is beginning to feed back into u.s. assets. >> i don't think -- i don't know what they are talking about at the fomc meeting. i would be naive to think that there was some juncture that they don't have conversations about what happens in emerging markets. possibly not now. am i ok? look at the equity story. i think this is where the china story plays in more. you are seeing bigger demonstration of moves on taper in the fx markets. what you are seeing in the equity market is i think much more to do with where markets

are overvalued. have a look at volatility. volatility rising by 80% in the last begin emerging markets. for me, the nuance is this. it is about the mature markets, the s&p 500. volatility in the developed markets is rising. it is ratcheting. up 82% last week for short-term coverage. are we at the beginning of a forection or the potential a correction in developed markets? we will be talking to our guests about this shortly. thank you very much indeed. -- ecbe former ac president is weighing in on this selloff. we spoke to him exclusively over the weekend in davos. >> the davos man is probably 2014 in thinking that

would be a nice year with growth all over the world. a little bit more growth than last year. again, the mood is good and you can understand that from a short-term perspective. of course, risks are still there. risks are there everywhere, obviously. certainly in the advanced economies. central banks are still doing extraordinary things including -- and that signals that things are not yet working normally in the advanced economies. there in theo emerging world with the most honorable countries. we are relying upon the growth of the emerging economies. some of them because of the ,hange of the global finance

the most honorable -- vulnerable are risks that are multiplied by the global international community. >> you're going to hear more from jean-claude trichet later on in "the pulse." the political crisis in ukraine worsening over the weekend. president yanukovych has offered to share power with the opposition. it failed to end the unrest. let's get the latest with ryan chilcote. >> funeral processions have become the new feature in the ukrainian unrest. protesters marched alongside the coffin of one. he is a young man who was shot dead earlier in the week during those violent protests. he would have turned money six 26terday as he was late -- as he was laid to rest. we had clashes through the night and two over the weekend occupations.

one of the convention center that protesters turned into a makeshift hospital. a big issue there is the protesters getting medical attention. this helps them with that. also, just late last night before dawn, the ukraine's justice ministry was occupied by protesters. the guards of the building happily letting them in. the justice minister herself, one of the key negotiators with the opposition, said that the protesters in that building have to leave today or she will call on the president to install a state of emergency. regionally, the chaos continues to spread. theregional headquarters of federal government in 10 different regions has been occupied. whereas in the past when we were talking about that it was just in the west of the country, we have also seen some of these protests spread into the eastern parts of the country where president yanukovych has been more popular. >> is that the next evolution of the story? the fact that we are starting to

push these protests in east -- that is moving into the yanukovych heartland. it is the bit of the country that has normally favored russia. >> it is worrisome for yanukovych and russia which gave $15 billion to ukraine to prop up president yanukovych. at this point we are in limbo. all eyes on the ukrainian parliament session supposed to take place at 10:00 ukrainian time, that is 8:00 in the morning here in london. over the weekend, president yanukovych offered one of the opposition leaders the post of prime minister. although he was an incredibly clear, he appeared to decline. some people say that was meant to divide the opposition. and alienate from the protesters, most of which don't care who is the prime minister this point. the main man is that president yanukovych resign and call for early elections. >> we will leave it there. thank you very much indeed.

talking or about the emerging markets in a few minutes. in the meantime, let me tell you what else is on our radar this morning. the former nsa contractor edward snowden says there is "no doubt" that the u.s. engages in industrial espionage. the key to a german tv channel, he said that if a company such as siemens was found to have had information useful to the u.s. government, the nsa would use it. are wrapping up an effort to protect citizens data. the companies are working with the eu to create standards for web-based programs and data storage services. daft punk cleaned up at the grammys. the electronic is a duo won five awards. macklemore and ryan lewis were another standout duo taking home two trophies. one of the highlights at the grammys was a performance of

husband and wife powerhouse jay-z and beyonce. we have a question this morning. what does it take to win a grammy? catchy lyrics or smart business? we will discuss that with the founder of the music prize. that is coming up later right here on "the pulse." ♪

>> good morning. welcome back.

turmoil is spreading across global markets. em stocks have sunk to a global low. -- four-month low. investors are worried that the fed tapering will spark more capital outflows. i asked one of the biggest names in the hedge fund world about where the ecb will follow suit, whether or not we will get more from the ecb in terms of qb, whether or not you're going to get the opposite. pierre lagrange who cofounded ecb are the fed and going in different directions. >> the fed will be much more gradual. the u.k. will probably follow. typically more proactive because of deflation trend. on the emerging market side, the same thing especially with current account deficits which will need more help there. japan i think is going to continue. with thea big hurdle

wage negotiation. there is going to be another slump of money. cofounderom glg pierre lagrange later on in "the pulse." let's talk more about this. is the head of em at pioneer investments which manages more than 200 -- more than $2 billion in assets. how much of what we are seeing in emerging markets right now is driven by what is happening with the fed? how much is more local? >> certainly it is the global picture. the fed story has been playing out already last year with the tapering bringing the markets sharply down. this year i expect will be late somewhat as we see a better situation, better understanding by investors what the tapering

and hails. there are more fears in the market due to the chinese slowdown in growth as well as the latest emi numbers which were softer. with a lotombination of issuance in the market. you have a little indigestion as well from the perspective. local currency will be under pressure as special for those fragile five countries where the current account deficits will be still -- >> do you think investors are discriminating enough at this stage? em's obviously tend to get sort of lumped together. in the last 12 months, you have made great money and current account surplus countries. if you look at the gulf, the investments have done very well. look at current account deficit companies, they have not. you think investors are understanding the new once his of what they are seeing? >> people are differentiating

significantly. those countries which were more stable perform much better. it was overall a difficult year last year. hopefully this year will be slightly better, more stable. those vulnerable countries will stay under pressure. >> where do you think the focus is going to remain? you talked about the fragile five, argentina and the mix as well. on theontinue to focus turkeys and the south africa's? >> argentina has been a focus of the markets in the last few days especially given the volatility we have seen there. the currency has lost 20% since the beginning of the year. supposedly we will lose another 10% to 12% this year as forecast. it is going to be under pressure. we see some orthodox measures that are leading to the selloff. orthodox meaning that the central bank is looking to

address some of the imbalances that are there, to adjust the current exchange rate to the parallel markets. this is causing a little bit of uneasiness with investors at the moment because of the spillover effect on the banking system. in 2002, posit were frozen. that comebacks to haunt. of course you have turkey where you have a combination of a current account deficit that is quite wide on top of the political volatility we have seen. >> do you think turkey is going to fare the worst? it seems to have the most toxic combination of the political plus a business model that is really based on external funding. >> absolutely. you have a combination of fundamental challenge that

turkey is facing, large karen echo deficit. you have a -- current account deficit. turkey needs to balance its books. they have been running a deficit in the primary surplus should probably be around 2% for turkey to the on a stable path. you have a significant pickup in political challenges. it has been spilling over into the economy. you have a heavy election calendar. you are facing local elections in a few months time. followed by presidential elections and bake parliament elections next year. there is going to be a lot of volatility for turkey. >> thank you very much indeed for your thoughts. he is the head of emerging markets at pioneer investments. still to come, the high rollers cashing in on the grammys. how the magic -- music

industry's top performers are building a business empire. ♪

>> welcome back. to the markets now. manus cranny, over to you. >> guy johnson, day three of equity market declines, the biggest declines we have seen since june of last year.

gas companiesand that are on the downside. volatility is rising. the cost of protecting yourself against a correction on these markets has risen by 25% over the last three trading days. you begin to understand the dimensions of what is going on. it is about bg, the london market to be fair. bg, $2 billion of empowerment. we will have more on that. vodafone, at&t not taking vodafone. our insurance company in the u.k. may have to drop the dividend to protect their capital. it is a triptych in terms of the u.k. these are the beasts of the ftse. this is the second biggest company in the ftse after hsbc. back to you. >> thank you very much indeed. coming up, what is a grammy worth? lorde wins song of the year. we check out the business of the

biggest awards in music with the founder of the mercury prize. we will see you when a moment. ♪

>> good morning. welcome back. we are live from london. francine is out today. have all the things you need to know and these of the bloomberg top headlines. government acquisitions our power. . the deal marks the first sign of progress that has taken place in switzerland. edward snowden says that there is no doubt that the nsa engages

in industrial espionage. he says that if a company was information that is useful to united states government, they would use it. not -- at&ty do says they do not plan to make a bid for vodafone. let's get more on the latest from the world of telecom. hans nichols joins us from berlin. today, to what extent is it about the takeover ?ules >> let me do the background. there are two ways you can look .t the filing that at&t made one is that there will not be a rule. does that make that more likely

that they will acquire vodafone or less likely? wants a foothold in the european market and vodafone has that. millione close to one subscribers. it really takes the pressure off of themselves. there could be a potential price war in the next six months. vodafone will turn from being prey to being predators. they will go on an acquisition spree and they will have so many fixed assets that are no longer attractive to at&t. you are seeing all this talk about them potentially buying a spanish cable company as an ipo or getting brought by vodafone.

because they have more fixed line assets, it makes it more difficult for them to cherry pick the wireless. >> that leads us to the next story. some say that liberty global could be a target for vodafone or the other way around. so, liberty global clearly has control now. they owned 30% before. john malone had a strong toehold and foothold in the market. he succeeded where carlos failed. he wanted the wireless side. what you are seeing is the story beingap american money withd and coming over

assets to buy in europe. there are more companies than they are invested in the opportunities. >> yes. us fromhols is joining berlin. oils will be below expectations. in the latest, let's bring brian. this is a head scratcher for me. the market is down sharply this morning and there are hints, lots of them, that there was a problem. muche outlook for 2014 is

lower and you expected them to turn around faster. will any of these problems be resolved. the egypt issue looks like it will be tougher this year. problems.ome of these >> it is hard to say. egypt will take a while. .hey have 1/5 of their profits it is unprofitable to ramp up production there. in brazil, this applies to investors and it will be ramped up. >> so, who is next? >> i do not know. you look at the problems therere emerging, are similarities with other businesses that i can extrapolate? >> the problem is that oil prices have been high and the

cost of doing all these projects is going up much faster. it is the same problem that everyone has. there is pressure from investors to clamp down. >> thank you very much indeed. technology and move on from energy. bondage -- vonage. he has been speaking with elliott gotten. -- elliott. ande integrated things conference calling. one click and your entire team is on a conference call. we help people communicate effectively. a 2014 and we created

solution that we believe we will use. >> is a business focus. it does well all over the world. dynamics.team >> there is a crowd sourcing company. is that any imminent future question mark >> we are working and looking for people who are interested. the timing is good. it is up to 1.5 million. right and weave a understand the experience, i am learning a lot and it is fine. >> most of your team is based in the united states. i go for where things work

best. we have been able to do data work with large agencies and we have a way that we can work with technologythe core is done by the best and brightest people in the world. why shy away from that? product inside of itself. we sit onand and champagne. very proud of what we ended up with. >> you have the meeting with a .umber of staff in israel where do you think the next big thing is going to come from?

where would you be looking now outside of your own company? there are lots of things that are happening right now. there are lots of noise and opportunity. there are things that are really cool. i have a better appreciation and ever before of my life i have invested in fitness and wellness startups. i'm looking at this from two different worlds. communications and health.

there is proactive health and it will be big. rather than going to a doctor and being sick, you check-in and it changes the dynamics. at the end of the day, where are we? we are looking to make a better life for everybody and help out with how we are doing and putting it forward from there. of vonage.ounder and punk was at the grammy one album of the year. we talk about the changing music environment. live is a big draw. robots are a big draw.

24, 25, 28 million people turning to the grammys. it is a magic marketing moment and you have a moment with macle -- mclemore. there was a newcomer who was a teenager, coming to a zeitgeist moment. it is encapsulated perfectly. you put in 24 million people from the music side. it is amazing. >> yeah. i found it interesting that this is -- and we will talk about purelater -- this is still

of the music industry as a business. if you want to look at the two people, to my mind, who encapsulates what is going on in the business, it is them. they are good at marketing and not marketing to get the business model working perfectly. >> yes. -- well done,y menace -- manus. what does it mean for record sales? the week after she won the had 120,000. up to 500% as a ramp-up in

sales. be. will >> a kick starter for the business model. >> thank you very much indeed. we will continue the conversation and speak with the ceo of the music manager form. that is in the second hour of the show.

>> we are concerned about it. cpi is weakening and we are looking at japanese banks and asset values because of deflation and recognition of the lending. why it does not hit you immediately? it takes0 years for the dictation bubble -- deflation bubble. lebron -- pkiera grange.

our next guest things that is overdone. he is worried about it. the numbers, when you look at them, have come in sharply. is 0.7.er should we the worried about it? >> i am worried about the prospects of deflation if we are on the back of a slowdown of the global economy and heading towards a new recession with no progress. that is not the case. we have momentum in the global economy and the euro area, which has tended to lag. the point i would make about specifics and the euro zone inflation is that what you are seeing is the flattening of energy and food prices. there is an increase in

purchasing power. comes todeflation that cut wages more and that is when we get worried about the deflationary spiral. >> you do not think the inflation number or the bank lending survey that we will get this week will provide a shock? >> the numbers have been low for three months and we are unlikely to see anything particularly new this week. survey, i can, that is a worrying part of the economy. we have households lending to corporate's and entities are still falling. the term, escape velocity, in the euro zone. carney andtalk about

escape velocity. mario druggie, the head of the ecb, talked about a threat ghi,her down the road -- dra the head of the ecb, talked about the threat further down the road. if there was a need for action, talk to me about what it would take stop >> it is our minds that the key is to provide credit to the private sector. the euro zone is going to be like that for some time. area and the ecb are the only authorities that can take policy action. we are talking about another incentivizing of the banks for credit portfolios.

england was out 18 months ago and buying securitized bank loans is good but, we will have to securitize them. we are not going to get a chance to talk you about mark martin this time. up, a reviewable usage or people power. we have a way to convert energy into electricity. that is coming up.

>> welcome back. power.ing renewable it can convert to electricity. let's find out how it all works. people are pounding up and down every day. when you walk down a street, we can convert your electric energy into power.

power on the street can be connected. >> how does it work and how efficient is it? >> it is a really efficient system. there is continuous pol or coming out of it. we are going to see that getting better as we reduce the cost curve on our product. with a few steps, you can see me on the behind steps. we are storing energy and connecting into batteries. steps, you can see the sign being a limited. >> that is all it takes? like this will go

for 30 seconds or a minute. imagine 100 thousand people aggregating power and that is what we are doing. >> 100,000 people to a awful lot of damage to pavement and you have to use resistant material. capable of standing up to that kind of battering is your technology question mark >> my team, when we go out, we want a product and a machine that is nonstop. down to -50. you are in a tough situation outside. we have engineered something that can stand up to that. >> how is the business model standing up? out,ng, getting this bringing it to europe. now, we are in 14

countries and we do a lot of business in europe and north america. curves toucing cost the same price as normal flooring and that is our ambition. we are trading and you can see it powering train stations and the biggest retail sites in the world. next, the biggest airports will use this technology. >> thank you very much for stopping by. the ceo and founder. up andst word is coming for our viewers, the second hour of the pulse. that took on a whole new meaning for me. let's stick with music. the second hour, we will talk about the music business. something we will talk about is the grammys and what impact it

has on businesses. andill talk about telecoms earnings, as well. stay with us.

>> deal and no deal. vodafone shares slide. buyiberty global agrees to ziggo. music orammys, business awards? we will discuss. ♪ >> good morning to our viewers in europe. good evening to asia and a warm good