>> 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 morning to those waking up

in america. >> let's get to our top story. at&t is looking to buy vodafone today and has no plans for a takeover. we learned that liberty global agreed to by. let's get to hans nichols in berlin. how are things with at&t? >> they will not make a move for six months. that is according to a regulatory trigger this morning and they formally notified them that they would not make a bid. one is that the deal is totally off and that vodafone will pick up too many assets. it does not make it attractive to at&t. the other way of looking at it is as a six-month window where they continue negotiations. after the six months, at&t can

get serious. over half a billion $250 billion.d this is a massive company and would allow at&t to get into the european markets, while facing a potential price war and an expansion. it is an exciting day. >> he cannot see me. one female voice sound like another. we can get that from that. busy morning.a >> he has had a busy morning. let's move on. me for that. of course. my mistake. john malone has a toehold in europe.

how and where are european companies going to invest? the shares are valued at 34 euros a share and he is succeeding where carlos failed. and there is ay difference in the company. it iss fixed assets and like a game of musical chairs here. and it isis circling unclear who is the hunter and who is being hunted. companies have a lot of cash and we will have a busy season in the next six months and after the next six months. >> whether these deals come from mobile -- earnings from facebook and amazon.

reports.ple you have big headline numbers headline numbers and how many ipads were showed. what are they forecasting for this quarter they have teamed up with china mobile. to be honest with you, it is getting boring. we notice the, massive, and significant. productsevolution of -- e 2010 and we want a about innovation. >> massive over the weekend. there are subsidy talks going on and how they can never -- leverage this number. that is the amount of credit

that companies have on file with itunes. how can you leverage that to go hard into the digital space and do what people talk about? you get your iphone and you walk into a shop. facebook talked about monetizing facebook. have is accesst to an account. this is a little bit of context. globally a little bit and you can see how big the space is. it is about that. >> mobile payments. details. chance with >> there is potential here. >> thank you very much. >> let's talk about emerging markets.

a significant number of currency is weakening and manus cranny is here. is this against the fed? >> a lot of this movement is the takend they will have to $10 billion off of the table this week. the biggest market reaction is in emerging market currencies. peso and south africa was where they thought they would have to raise rates. so far this year. you have to ask yourself with the dollar-peso down. mistake.a bit of a it is just which way around.

you have a clear stage of work. today, we spoke to ubs and credit suisse. and you areling off going to see more selling when we begin to differentiate in the week. >> thank you very much. they continue to be bothered by the tapering question. will the central banks follow suit or go in the opposite direction? says they will not reduce stimulus anytime soon.

going to be more proactive because of deflation and economic growth. be emerging markets will trying to counter. they will need more help there. it will continue. you have a big hurdle. if you do not start with inflation, there will be another. >> here is what else is on the radar, snowden says there is no doubt that the united states engaged in industrial espionage. they said that companies were found to have useful information and the nsa would use it. he has disclosed mass surveillance by the nsa. sap is ramping up efforts

from the united states government. it is data storage that signals which programs are safe. daft honk won five awards. duo. was another standout we will continue the conversation around the grammys and the money behind it. we will look at the business of music with the founder of the mercury prize. >> did holiday shoppers buy enough iphones and ipads? we will have more after the break.

>> good morning. welcome back. you are looking at the headquarters in london. another busy day in foreign exchange. taking it on the chin, those with current accounts. and you in south africa see the business story is not great. selloff.a

let's show you where we are today. we have a fresh five-year low lira versus the dollar. this is a big move. seeing inat we are 2014 with local elections that are wrapping up the bigger elections. together to make things very difficult. let's continue the conversation. >> sticking with the emerging markets themes, the ecb emerging and economies. you are thinking that europe

have a bitcer and more growth than last year. and you cangood understand that from a short-term. everywhere, obviously. central banks are doing includingary things, signals that things are not working normally and are growing andr in the emerging world vulnerable countries where we rely on the growth of the emerging economies. , some of them, because of the change in global power that

is insulated, some of the most vulnerable are in the international community. president.er ecb and their apple earnings. they are expected to record their first game in a year. people are buying more iphones and ipads. we are joined with what he expects and he joins us from dubai. mean that apple will have a great time? >> i think it is an indication that they will have a better time. if you look at how the iphone is being received, it is better than expected. the ipad air is also popular.

you have china mobile, the first time you can sell the iphone legally in china and that will add to the numbers. we will see 55 million units and i am looking around 57 million units. fascinating and the numbers are good, potentially getting better. over the last few quarters, it has been lack of innovation. any improvement? >> i do not think so. they are not going to talk about soon.oducts anytime that story is not going anywhere. apple for the next two or five years, the biggest issue is the lack of services that they have. realize that what they are

good at is distributing services and content. what they are also good at is the hardware side. they went to invest. that is a great asset and apple needs to leverage that assets to hardware toays then make good margins. going to be any good? >> that is a good question. the answer is no. if you look at what has been launched so far, they have not been successful. and this is good the problem that they have. , further down the

i could see a mergers and acquisitions spree. >> as you go through the week going towhat are we see reported this week? we are going to see good numbers and a valuation that is challenging. is that intele it had a difficult time and microsoft had a great time on the software side. apple doing a little better, thanks to some of the weakness that they are experiencing in the smart phone market and a lot of reaction is in software and services.

the hardware is starting to slow down and you are seeing that reflected in the firms this week. >> always a pleasure. it is nice to see you on screen. .hank you for joining us over to you. >> we will tell you what is coming up on the show. a political crisis in the a date and a big show -- to share power fails .

>> good morning and welcome back. the hedge fund community has bounced back well from the crisis. image is another matter. >> i think our image is going to theyanother five years and have been with the view of economic images with businesses .nd operations it is a highly documented theess and we include allocations because we focus on risk adjusted returns and

allocated risk budgets. mistake with anglo-saxon capital marketplaces. we have to move on. >> move on. that is the cofounder talking to me last week. let's talk about what is happening in the ukraine. the political crisis worsens. let's find out what is happening . ryan chilcote joins us with the latest. >> there was a piece fire that did not last the weekend. we have protesters seizing a convention hall and turning it into a hospital. and many ofrtant the protesters cannot go to government hospitals because of fears of getting arrested. , at thers walked into

invitation of guards, the justice ministry and the justice minister, an ally of the president, says that unless they leave the building, she is going to ask for a state of emergency and that is something to watch. processionseral that have become a new feature of unrest in the ukraine. you had a big one yesterday and you have a man who would have turned 26. you have a geographic spread into the west of the country. and wein 10 regions now have moved into the heartland. all in all, a dangerous path. >> what happens next? vacation in on london.

when they get together will be the catalyst and surprise everyone with the opposition leaders. wasn't decisive in the way he did it and people say he left the room open. there were opposition leaders who have, in general, -- attempt toit was an divide the opposition and alienate them from the protesters on the street. he made the offer and a lot can happen in the parliament. if a lock does not happen, we have to fear what happens after that. >> the protesters are moving east to a more russian focus.

alarmed and be there are two parts of these protests that we were talking about. the geographic fragmentation of the ukraine and the protesters from the rest of the country. they tend to be more national and speak russian. that is what they did until 20 years ago. their second language is their first language. about theoncerned increased nationalism from the ukraine and, when you see these protests in territories, that undermines the argument and the other thing that is going on is that people are fed up. not just upset about the government, they have heard about corruption in the country and that is a big issue for russia. >> right chilcote is the latest.

chilcote with the latest from the ukraine. a bit about the business model we come back. ♪

>> good morning. welcome back. you are watching "the pulse." i am guy johnson. these are the top headlines. syria's government and its opposition groups and discussed the release of prisoners and allowing aid into the siege city. egypt's interim president said his successor will be elected before the nation votes on the next parliament.

of have seizedey seized the justice ministry. demonstrators say they believe little will come from the parliament session called by the ukrainian president, which happens later. back over to you. >> telecom takeover talk. intent tonced its make an offer for vodafone. we are joined by the principal coming -- thank you for in. let's talk about the biggest of these. at&t saying they are not going to bid for vodafone. how do you interpret this? comply withs is to u.k. takeover laws.

does that mean they might bid after six months? >> let's go a couple of steps back. when vodafone sold the stake in verizon, immediately the market started speculating, now it is time for at&t to move ahead and see whether they can do something with vodafone. out from thisd deal. will have forced them to come out and say, we want or we do not want. they say, we cannot go ahead at the moment with the acquisition of vodafone. reasons. a number of the price of vodafone in the past six months has gone up so

much. >> it is a bit cheaper this morning, but yes. see a we don't really clear benefit for at&t in acquiring vodafone. >> the argument has always been that they would like the european assets. vodafone comes with a lot of emerging market assets as well. >> there is a lot of interest in european assets because european assets have a fairly low value, in comparison. they are cheaper to buy. markets are weak or have been weakened by regulation and by competition. it makes sense. from an industrial point of view , we do not see any immediate benefit. >> is there anything that

that the-- proves -- that thef at&t meetings could have been derailed? i don't know. what could have derailed this deal from happening is probably vodafone being able to command a fairly high price. that is probably the essence of this not happening. , while all of the speculation that vodafone would be prey to at&t, vodafone is busy planning other deals. do you think they will be after spanish assets? >> we know that they have been looking around for mainly cable assets, tv combined with cable. there is an enterprise focus as well.

is not whatngly, it at&t wants to buy them for. right? >> no. the reason why at&t is looking to grow is because they are in a players backfour at home. at&t relies almost entirely on the u.s. market. this is a market that is doing ok, fairly well actually. as it becomes a lot more competitive, especially because of the capital injection from southbank, sprint is talking about merging with t-mobile in the u.s.. if that happens, they will become a very strong player. that is bad news for at&t. they know they need to do something. and somehow they think that the vodafone direction is probably the right one. thatve said from the start it is probably not the best thing to do. there are other ways that they

could be doing. they could be focusing more on the u.s. market, extract more value from the existing customers. >> think you very much. we will see if this deal will pan out in months to come. thank you very much for joining us. >> thank you very much indeed. a link to our next story. edward snowden says there is no doubt that the u.s. engages in industrial espionage. he spoke to a german tv channel. let's get more on those comments. hans nichols is in berlin. that germanis is companies, european companies will try to use these revelations by edward snowden to promote, to leverage, to seek some sort of advantage in the cloud business. as it all becomes more integrated and heads for the cloud, everyone is seeking the

advantage, everyone is seeking market share. here is the actual allegation. he really brings it home to a german company. informationhere is in siemens that is beneficial to u.s. national interests, even if it does not have anything to do with national security, then they will take that information, nevertheless. it was a six-hour interview. it has been played on german tv numerous times throughout the morning. they're playing snippets of it. it is interesting that he chose siemens. from siemens tomorrow. we will be listening to see on the conference call whether or not siemens has asked about this allegation. the next side of the story as to what extent will german companies, european companies publicly expressed concern that some of their confidential, proprietary data has been compromised and that the hands of the nsa. >> just when you thought the story was done, there is more. hans nichols, thank you very much. >> the great and the good from

the world of cyber security meeting in tel aviv today for cyber tech. israel is one of the leading players in the field. elliott has more. there are reports of hackers targeting and israeli defense minister computer. thatese reports saying some 15 computers were taken over by hackers who used a malicious e-mail account to get into these computers and then take them over, one of which was by palestinians. attachmentous e-mail would have come from an address that is purported to be from the domestic security service. how important it is for israel to maintain its cyber security, but i suppose the prime minister we saw aizing that

drop in sales from cyber security firms last year. what he said this morning is that he is going to reduce ,estrictions on the licensing export licensing, of cyber security companies in order to try to help to boost the industry. that is something that he was saying to us before the weekend over in that most -- davos at the world economic forum. >> you cannot have the growth of the world economy without the internet. the internet drives the growth. everything is dependent on one thing -- having security. how to protect her bank accounts, your user files, electricity grids, and so on. all of that is becoming a tremendous issue. i think israel is going to be

there. we will manage, we will balance our security needs with our business opportunities. >> those are very big business opportunities, as far as israel is concerned. more than 200 startups in the cyber security space right now. they have raised over $400 million in the last three years. that is at the bottom. check point software listed in the united states worth $13 billion -- invented the firewall. certainly an industry that israel is keen to promote and to lead in the world. >> thank you very much, elliott. in 20 minutes time, it is surveillance with tom keene. he joins us now from new york. what are you looking at today? >> i am looking at my glasses. i am blind over here. let's look at the markets. i am waiting for that first

quote on the argentine peso. .urkish lira, week what does this mean for the emerging markets? what does it mean for those in the developed world? it will be interesting to get jason's perspective on the reaction to what we saw thursday. lan will join us from deutsche bank. there is a football game like a week from now. i am totally not up to speed on the super bowl. us, i amakes two of afraid, tom. plenty of be companies up to speed on the amount of money they can make. thank you very much. tom will be back at the top of the hour. let's take a look at the markets

are trading. very topical. manus cranny is that the touchscreen. foreign-exchange and what is going on. banks areh central calling an emergency meeting. the monetary policy committee will meet on the 28th to discuss recent developments and take the necessary policy measures for price stability. the decision will be announced at 2400 hrs. this is emerging market central- bank policy reaction in the make. this is the euro declining. this is the lira rallying. what we see so far are the turks defendto intervene to the turkish lira. they just are not have the currency reserve. the do not have the firepower. is a peashooter against global markets. they will have an emergency meeting.

this sets the tone and the tenor. dollar rising. below levels that we have not seen. for a hike and south africa to defend their currency? the market is pricing that in as a 50% possibility. the debate this week will be if this is a right or a correction. that debate will go on. >> thanks for a much indeed. a developing story. coming up, last night was the music industry's big night out. it was a big night out for daft punk. reallyher grammy wins worked? we will discuss the business behind the grammys. ♪

welcome back to "the pulse." the 56th annual grammy awards took place last night. we ask if the award show still matters. manus, this is a changing music event. is this live spectacle still key? >> it can be make him a break medical.

break critical. when adele won her grammy on the album 21, it was a record that trumped the album charts. the week after the grammys, it went from selling 122,000 copies to selling 730,000. that is a 500% increase. >> it seems that particularly for acts that are fairly small still come on the rise perhaps, this can really add to their notoriety. people25, 28 million tune into the grammys. if you have the right product -- you can grip the nation if you can grip them for three hours -- >> you don't even have to show

your face. it daft punk to the whole thing from behind masks. >> who is going to benefit the most in terms of box? -- bucks? >the running is open. lorde. >> nothing to do with that finish rock band years ago. i listened to lorde's music this morning. lovely. >> did he just say that the average age of the audience is 42 years old? >> yes. >> that strikes me as being remarkably old. i am just putting it out there. let's talk about the industry little bit more. we are joined by john webster. he represents music giants like elton john, radiohead, lily

allen. he founded the mercury awards. good morning. >> good morning. >> what struck me about the grammys last night is that the kicked off with two of the most successful artists in the industry. jay-z and beyoncé. these two people are also the most successful artist and business people in the industry. they really tie these two aspects together. you wondered, watching it, business awards or music awards? >> i think it is increasingly becoming business awards is artist start to build the run businesses. that is what we believe is happening. the record labels used to dominate this. they used to control distribution and finance. they do not anymore. artists can raise finance and do it themselves. jay-z and beyoncé are the people who are leading that charge. hasigitalization

accelerated this process. >> it has made recording cheaper. distribution, as we saw with beyoncé recently, you can did your music out to the world immediately, to the entire planet straightaway. the old channels are far less informed. >> manus was running through the music sales. music sales are increasingly just a part of the business. you have to do merchandise income all of the other things. >> you absolutely have. recent survey said that something like 55% of the value generated by the music business is generated by artist. that has never really been put to the forefront. used to be that the record labels for the big tosses and they were at the forefront. that has changed with the internet. it has changed with the generalization.

recorded music is probably 25% of an artist's business these days. merchandising, synchronization, things like that. it is all changing. >> the music industry has, for ds on thes, built ban back of being non-consensus. the best business people are the best musicians, increasingly. change of the music industry? how does the industry deal with that? >> artists have not been keen to be seen to embrace business. i think that has changed in the past 20 years. probably coming out of america, as much as anything, and the whole hip-hop culture that has been about success and showing it. you talk to radiohead about it and they will walk -- not want

to talk about it. you talk to jay-z about it and he will talk about it. >> he wants to talk about nothing else. he knows that that is what he is doing. they're all different. those that don't want to talk about business, that is why they have managers. who do those things for them. >> we will leave it there. fascinating conversation. jon webster am a ceo of the music numbers for him. ♪

>> good morning. welcome back. you are watching "the pulse." extraordinary moves in the foreign exchange world. this is the dollar versus the turkish lira. it is reversing a course that eight turkish lira selloff. the central bank has been under pressure not to raise rates. political pressure. it 11 meeting that will take place tomorrow. -- it will have a meeting that will take place tomorrow. markets as we go through the early part of this week. hans nichols is back with a look at what else we need to be aware of through the rest of the trading day. what are we watching?

at&t at the open of the u.s. trading session. news that that u.s. giant is not going to bid for vodafone. >> we should look at all of the telcos this morning. vodafone lunged at the open here in european trading. also, verizon. more competition stateside, and more potential competition i n europe. apple reports today, their quarter earnings at 4:30 eastern. where they are with samsung. how well did the iphone cell over the christmas period? there will be an indication. when you go to bed very late at night, you can see what samsung is doing, reacting off the back of those apple shares. it is snowing here in berlin. we are going to be watching the snow. .> it is just windy and wet

you could probably say that for most days here in london. "the pulse." for keep it right here on bloomberg television. "surveillance" is up next. >> see you tomorrow. ♪

>> the emerging market route continues this monday morning. cajun --tingent -- and contagion spread to the u.s. market?

another immigration plan -- the first tuesday in november. content is king. just us facebook and yahoo!. >> we are alive from our world headquarters in new york. it is monday, january 27. where did the month go? me, scarlet fu. we welcome olivia sterns. she has never been up this early in her life. that is not true. we used to have a 5:00 a.m. london show that we did. >> do you like new york better than london? >> hard to say. very happy to be home. some news overnight coming out of japan. reporting a record deficit in 2013 things to a surging energy bill. this comes after three decades of surpluses that can to a halt in 2