>> pub politics. prime minister camera and president hollande seek closer ties, including a deal on romans. then they will discuss britain's place in the eu. >> microsoft find its head in the clouds. the tech giant prepares to make satya nadella ceo and bill gates could be out as chairman. broadbandgs in more customers with his free scores channel. good morning, everybody. you are watching "the pulse."

we are live from bloomberg's headquarters. show, acoming up on the royal collection. we give you insider access to the es-ever cartier exhibition. >> touchdown for kate upton. why this year's super bowl ad could be the priciest ever. >> david cameron and francois hollande our meeting today at an air base near oxford. ryan is here with the latest. we know that they are having lunch in a pub, which is what we want to know about. should we talk about that? >> e.r.a. allowed to know they are having lunch in a pub, we aren't not allowed to know which pub. historylk through the of this cooperation. these are two countries that post-house agreement, said they will operate on military affairs. >> that original agreement was inked back in 2010 between

sarkozy and cameron. hollande arrived later. ideologically, they are very different. hollande has an issue with britain trying to rewrite their relationship with the rest of the european union. militarily, i do not think that president hollande has seen the value in cooperating with french up to the aliursion in molly -- in m about a year ago. they are going to try to kickstart that cooperation all. the idea is that they work together on a drone. they will sign a deal committee $200 million to developing a drone over the next two years. bae already has its own that it has been experimenting with. it is called the tyrannis, named after the celtic god of thunder. they will also talk about missiles for helicopters that

ipuld be used in anti-sh operations. more than $1 billion of military cooperation on the table. it is a little bit like companies. they are trying to find synergy and cut costs. both of them could use that. actually getting british and french citizens to work together in the sensitive area has proven not as easy as i think sarkozy and cameron originally thought. >> it is interesting. you talk to bae and dassault. they have huge respect for each other. those are the only two companies that are building advanced fighter jets. they are the only two companies that can potentially pursue some sort of a drone transaction. they have huge respect for each other as well. the politicians might not have huge respect, but they do. where can we go with this deal? >> it is not just france and the u.k. recognizing that, from a

national security perspective, on the perspective of sovereignty, it is useful for them to have drones. it is 21st entry combat as the united states has been demonstrating in afghanistan, iraq, pakistan. interestingly enough, both the french and the british have drones. they are only american-built. enough, dronesy have not been worked out in u.s. airspace. both programs run out of the united states. the eu agrees that there should be some kind of european drone. companies are independently working on this, but nothing really ready for combat just yet. eu has, the ue -- the agreed that europe should have its own drones that can be deployed in conflict zones. they are trying to move away from this dependence on the israelis and primarily on the united states when it comes to unmanned aerial vehicle operations.

>> you really want to upset someone who works in defense, call it a drone. >> thank you very much. we will continue the conversation in a few minutes because we will discuss their joint defense plan. >> let's talk about some of the company news we have been focusing on. beat estimates as more customers signed up for broadband internet packages. why are they doing this? let's find out. let's talk to jonathan ferro. >> it is about the sports. bt sport, 2.5 million customers now. i have really punched into some of sky's territory. they beat on earnings and revenue and lifted their outlook. i want to take this story back 12 months forward. in 12 months, we get the next auction for premier league rights.

paid 1.6 billion. inn it jumped to 2.2 billion 2013. the big question is, what will they pay next time around? is has gone from 38 million a season. what you could see is a raise fromthe bottom -- a race the bottom. how out of control could this fight for right to get? >> there is a point where you just cannot spend that much. what is sky doing to counter bt's push into sports? >> it is not all about sports. the sports are there because they want you to buy the broadband, telephone, and mobile as well. sky are getting a little bit cozy with vodafone. you can see on the signs outside vodafone that they are offering sky sports on the mobile with your contract.

that is creating a little bit of buzz. what happens when these two you something more formal together? they could also offer something offer adoes not competitive package in, which is mobile. >> the battle continues. >> the battle for your living room. >> not even my living room, out and about, everything. >> the very latest on bt sport. over forch might be microsoft. the company is preparing to make satya nadella the new ceo. linewith more is there a you spoke to him recently. lex i did indeed. he was unassuming. interested,ngaging, interesting, gentlemanly, notably loyal. this is what he told me. >> you are in it for the long haul no matter who is in charge, yourself or someone else? >> absolutely. could well be

him. he would be the third ever ceo for microsoft. there has only ever been bill gates and steve ballmer. he is very different from steve ballmer. he will not be leaping up on stage, dancing, sweating, screaming at the top of his lungs. internally, he is very highly respected. he is a tech veteran as well as a tech geek. leadership roles across the board. notably in the new areas, the areas microsoft is pushing to gain ground, to innovate. he has led the cloud services. that is where he leads now, of course. increasing sales over the last quarter. he is the head of the server unit and sales up 22% since 2011. he has also headed bing. he is front and center of where microsoft is trying to shift, away from just the software

toward pc's and into new areas such as cloud computing. after 100 or so candidates that they analyzed, it seems as though they whittled it down to this one key figure, who was very impressive. >> perhaps more surprisingly, possibly a new chairman as well. will bill gates stepped down? >> this is the big surprise. 1975, almostnder, four decades ago. he has been chairman since 1981. why now step down? we spoke with bill gates a week or so ago here at bloomberg in new york. he says his key focus is philanthropy. >> my full-time work will be the foundation for the rest of my life. my wife, melinda, and i enjoy that. i get to do it in depth. i am not going to change that. i will help out part-time. want to beestors may seeing is an outsider for this

role. satya nadella is an inside person. he is not much of a surprise. let's face it. they had to look at about 100 other candidates externally. potentially the inside people were not that inspiring. they want to get some new blood and new vision into microsoft, this whole new technological world. perhaps they should get something outside the board. it could be an internal candidate again. according to bloomberg, we have been speaking with people familiar, it has been said that john thompson, 40 years in the technology space, has been on the board since 2012. he has experienced. ymantect simon tech -- s over a decade. he is also known for speaking out against steve ballmer. questionsim some hard and made him step down perhaps slightly sooner in august of 2014. and shake, but he

is certainly not a key visionary that many investors want overall. member, this is a huge company. i leave you with this fact. this is a $305 billion market capitalization. that is equivalent to malaysia's gdp. it is huge and it needs some top executives to lead. >> thank you very much indeed. >> here is what else is on our radar. zynga will cut 15% of staff and spend $500 million to buy a popular mobile developer. they agreed to by natural motion as they look to regain footing in casual videogames. >> lvmh shares are up today. the most since 2010. the world's largest luxury goods maker posted higher annual profit thanks to a rebound of sales in leather products. >> and the danish prime minister quits over a goldman sachs investment.

pushed $1.5 billion stake sales. powers in exchange for the investment. >> a new global arms race has emerged for drones and europe wants to compete. in britain and france put their policy differences aside long enough to cooperate? we will discuss that next. ♪

>> good morning, everybody. welcome back. you are watching "the pulse." streaming on bloomberg.com, your tablet, your phone, and any windows phone as well. and francois hollande are holding a summit at in oxford air base today. over eu reform, the two may agree on one thing, drones. here to discuss the dense -- the defense plan is a defense analyst. good morning to you. in effect, these are the only two countries in europe that have capabilities to build advanced fighters. >> that is correct. >> the next step is logical, to build drones. the french have traditionally gone their own way. these two countries should cooperate. >> it makes perfect commercial sense. that -- the suspicion actually, the french favor being

good at protecting their own industries. it will favor its own industry over the u.k. thevalue-added of uav's is the 2 and 3 providers, electronics they go into these platforms that the likes of bae and dassault make. there is a suspicion that the french will protect those value-added areas. >> a little further up the road. when you look at the potential that could be here. if europe does not get together, it is going to struggle with the israelis and the united states. >> it makes a lot of sense. the u.s. exporters are dominant. they have an awful lot of war experience. , in terms play it is of a stock perspective, you can still get exposure to u.s. and

's byand european uav 3 suppliers. and they provide the value-added electronics onto these platforms. >> so you do not buy bae. -20% of anyave 18% part of the export package of the f-35. you do not play it that way. it, there is play more competition. you go for the tier 2 and 3's in my opinion. >> when you look at the potential for the defense land dip in europe, i am always told the until the french have network within the defense industry out, there is no chance of serious cooperation in europe. is that the base case? >> i think that is fair.

the talks that were agreed to in 2010, this is a development. i am a little bit cynical. i think it's agreement is papering over the french opposition to eu repatriation of rules back to the u.k. something could be made of it, but it is really tricky to bring these companies together and allow them to cooperate. it may happen. it needs to happen commercially in light of -- i think that is an important point to make. it,s not how they are doing it is what areas they are spending more money on. that is a key point. they are talking about spending or cooperating on areas of uav's, shipment helicopters, systemsection underwater. all of that changes the focus from land capability. building mineer

protected vehicles. thate stepping away from and we are moving towards air and sea capability. that benefits -- >> is missile manufacturing the model we should think about question mark it is running incredibly efficiently. you think about dividends, you are running this on a casual space. could you run european defense rogue rams under that library? da is different. it is run as a sensible company. >> you are absolutely right. thatare in specific areas they have to collude on and compete with the u.s. and others. i think it would be really tricky to merge -- as we saw beenbae and eads, that has

swept aside. i am not sure there is more. i think consolidation will definitely happen. i think the u.s. budget deal also, the beginning of this year, careers the way for a potential bit of certainty. the primes in the u.s. cannot consolidate each other anymore. they are going to be looking at a broad. 3's, as i keep saying, because they provide fantastic capabilities. global footprints. i think that is the consolidation that is more likely. u.s. primes stepping into the breach and looking, scanning the radar for companies like government ultra. >> thank you very much indeed. theill continue conversation on david cameron and francois hollande a little

later on this hour. to you.eantime, over >> thank you so much. let's get some company news. google has posted fourth-quarter sales that topped estimates. spends after retailers more on advertising during the holiday season. yahoo! has identified an attempt to break into some users e-mail accounts. the company says a list of names and passwords was probably taken from a third-party database. yahoo! is the biggest u.s. web has mored yahoo! mail than 100 million daily users. volkswagen is seeking to hire a former daimler executive. tuesday.ed it -- on he previously ran daimler's tr uck division. still to come, millions of clicks and counting. for mercedes is a big hit and it has -- it has

not even aired on tv yet. details ahead. ♪

>> welcome back. it is time for a look at today's hotshots. with sochi just days away, the olympians are fine tuning their skills. shaun white will be one to watch. medals over3 gold

the last 10 years. you can see why. >> you certainly can. also showing off some highs the american balanced skier. his intensive training regime has helped him secure 4 world championship titles. he is going for another gold after a win in the 2006 olympics. >> i wonder how they shot that? that is amazing. >> they must have a camera on a pole. >> amazing images. that.move on from let's go to our markets editor, manus cranny, at the touch screen. >> how do you follow that? have a look at these markets. you have is 30 days or a months worth of trading. it is the worst january since 2010. stocks have dropped by nearly 2%. $7 billion has let the emerging markets etf's.

that is the worst exit this of cash since 2005, when etf's began. ,o understand the map below me london down three percent, germany down two percent, france off around 1.3%. aper at theng p lowest rate on record. stock market up on the month. italy, likewise. a positive performance on the month of january. wereeople who did the best the spanish banks when you look at the analysis on the bloomberg machine. there is no risk by -- respite. emerging markets, are we facing a breakdown of international policy? as far as the turks are concerned, it is a renewed onslaught in terms of their market. emerging market currencies continue to decline. i will leave it there. back to you. a up next on "the pulse,"

global collection from the gr worn by the duchess of cambridge on her wedding day to queen elizabeth's favorite broach. we take you inside the exhibition. ♪

>> welcome back. >> i am god -- guy johnson. >> bloomberg has learned that satya nadella may become the company's new ceo. they have been replacing bill gates is chairman. iscentral-bank governor looking at a breakdown in global policy coordination. anmade these comments in interview with bloomberg india.

>> we have to play a part in restoring that and we cannot wash the hands and say we will do it we need to. rates, theral bank rate hikes came. managers -- six danish ministers have quit. the deal gives goldman sachs power in exchange for the investment. story.s get more on this let us welcome anthony grog or. she joins us from copenhagen. >> whited this enough happening? -- why did this and that

happening? >> we knew that goldman would be buying the stake. back then, nobody paid much attention to it. later, there was a bloomberg scoop or found the documents that showed put of the agreement was there would be fetal rights. that was picked up by certain members of parliament. to a popular uprising against the whole deal. pulled said the did not want the government to back the deal. departurethe yesterday. >> can the government survive? can the premise or survive? >> yes. it is normal.

the coalition has said it will continue to provide support so the government can govern. they are not expected to call elections. this will be sometime next week. >> thank you so much. -- keeping itster real. deliveredury firm fashion and leather. manus cranny joins us now. >> the stock is still down on the year. tracing. is the question we have to ask is is is beginning of turning around? or is this a higher experience?

did well and make up to double-digit growth. , louisrall performance vuitton still grew at the rate of the industry. they were penalized because of some of their margins. the question is are they pushing the needle quickly because of a limited number of store openings? >> china is such an integral part. the dynamics and china are changing. there is so much more demand for the smaller centers, which are bigger than any capital city in europe. >> the chinese luxury market is worth $19 billion. the luxury items were

purchased by men. women are coming up. they are independent and they have their own money. i don't disagree. females are fashion addicts and fashion forwards. it is possibly going to supplant just -- giftuying buying. it is encouraging people to do business in a friendly kind of way. it is sort of irish. there is a revolution going on there in terms of what is happening structurally. have an look at the stocks that are ramping this morning, so far in the fourth quarter six stocks have delivered an eight and a half percent growth in the

fourth quarter reporting. louis vuitton is trumping the mall. is that sustainable and durable? >> it is true that there is a trend in developed countries. is taking a look at luxury. the largest exhibition ever dedicated to cartier is in paris. this tr was worn by kate middleton at her wedding with prince william. it was bought in 1936. it is just one piece of royal jewelry on the display at the cartier exhibition in paris. it also includes this brooch tom a one of queen elizabeth's personal favorites. you have to be rich like a

royal to afford one of these sparkling tiaras. cartier quickly landed the nickname the jeweler to the king . estimated to be worth $50 million. watches, dresses, and paintings. he was very inspired by history. he liked french style in collection. >> grace kelly and liz taylor received a one million diamond dollar necklace. cartier may be losing some of its sparkle.

swings, therey was a decline in luxury sales in china. >> do you like everything you see there? >> you start saying oh that's nice, it was a favorite of liz taylor. >> the line of people are signed up. earnings had the slowest growth since 2009. us fromhols joins berlin. what we see with amazon is it finally turned a profit. the revenue growth is not there. i can weed into all the numbers for you, there's just want to focus on. that is $79. that is what amazon prime costs.

it is dealing with higher fuel costs.nd shipping they want to increase that by 20 to $40. investors did not like that and they did not like the growth story. it was down as much as 13%, the stock. what it trades at when it opens in the states later today. that is amazon. what about google? tell us how they are going to profit from the super bowl. >> google seems to know how to grow. they do that with the exception of their handset business. this is their plan for the super bowl. they will sell ads against ads. they'll have ads on ads. the middleton is doing mercedes data. i meant cain upton. i am getting my kates confused. they are selling ads against those ads.

the super bowl is a $66 billion ad business. you are seeing an explosion of growth of people watching ads online before the game and then after the game. google is planning to look at the ads that went viral and people go to youtube and watch them. costs $4the super bowl million for a 32nd spot. 100 million people will watch. that is pretty standard, but that is a lot of money. >> i wonder how much you have to pay to get kate middleton to do it. >> it would go viral. maybe we have just launched a new career for kate middleton. i would not want to suggest that on air. i would make it very clear that you made the suggestion, that

kate middleton should be in advertising. it potentiallyld cost? i think you should take the blame, hans. speaking of the super bowl, it is the most watched tv event in the u.s.. here are some of the surprising numbers. >> are you ready sort -- for some football? almost as many people will watch as the entire population of metlifer enough to fill stadium in 1333 times. just $12.st fans were outraged they were so expensive. $2600.e value is you pay more first hub -- stub hub. on the field, not all the

quarterbacks are like. peyton manning is the highest-paid salary. is one of the lowest paid starters, making a base of just over $500,000. russell wilson was just nine years old when peyton manning was drafted. 1.2 5 billion wings will be eaten. >> those nubbers are huge. this is a great opportunity for advertisers. the world cup should offer greater exposure. >> this is football. the game you play with your feet. a 32nd super bowl spot costs $4 million. cup, a 32nd spot

costs only $250,000. even though 715 million people watched. that is a global sport. it also depends on the audience. if you want americans to buy your stuff, the super bowl. coming up, crap -- prime minister cameron will be talking defense. >> will they finally bury the hatchet? we list us that next. ♪

>> the british prime minister david cameron and the french president are holding a summit near oxford this morning. the focus is on defense. they will air out their differences over reform. thank you so much for joining us. this is two heavyweights. they do not get along on a personal basis. .hey have not been very warm summit, anything can happen. it is not a done deal that

things will go wrong. we have a surprise because reforming treaties. not because of what david cameron wants, the timing of those reforms. onceritish prime minister show reforms to happen and some. achieved the presidential election will make it difficult to have a referendum triggered by a treaty just before an election. aside, itial deals

seems to be a weak position to start advising david cameron. oracle had a much stronger position. if you look at french the latest number in about foreign investment. it was almost four times greater in january. it is a terrible number. sure the position is weakened. coalition.you have a , it is theinister

last chance to have a relationship between france and germany. i think it is the opposite. >> we always hear about these meetings with andrea merkel. think he will have less influence. end, the keys. cameron was in a very strong position. on the other hand, he did not have a good relationship with merkel.

there may be some surprising that front. have something. thank you for joining us. that sounds nice. managing your heating and hot water systems by our smartphone. that sounds like a good idea. that story is coming up here on "the pulse." ♪

>> good morning. homes don't have basic heating controls. forms --nagement web platforms increases energy efficiency while cutting fuel costs. you can do it all from your iphone. i have to say, it is great to have you here. time talkingst about this. the google acquisition of nast has set the cat among the pigeons. are you concerned it is getting a crowded space westmark --? >> it drives interest in the space. activity.ing a lot of

there is lots of advertising and expenditure to get into the public awareness. it is good news. it gets the public understand the benefits that can be made from better management of their heating and energy consumption. >> you have a differing feature? concentrate on analyzing the data and making sure the it's -- the consumer is getting feedback from the data we collect. homeneed to know how the is reacting and what the weather forecast is telling us. -- optimize all these factors. be for me toit plug in your system into my home? >> it is a straightforward solution to plug-in. we recommend you get it professionally installed because

you are dealing with electricity. >> it is not obligated. >> two or three components in your online and you have access to your phone so you control it when you are away from home. with advice and guidance on how to optimize. >> the payback. is about a year. depending on the size of the home. it makes a lot of sense. againstan push back rising energy prices. the cost of energy is rising a times of earnings. it is becoming a political what canas consumer you do. you can use less. >> the data is fascinating. i can see why google is getting into it. it is another way to harvest data. what is the potential? >> everybody wants to be in the

thing it. this helps you understand what is going on in your home. it could be with healthcare or understanding what is happening. home security is another thing that is driving the market in the u.s.. this is all about getting things in the home and collecting data. you get that data back and the value for the consumer. >> thank you for stopping by. now for those listing on a second houro, of the pulse is coming up. we'll be talking about tech trends. we'll be talking about where we will go from there. go and what do they need to work on to get those costs down. we will talk about getting bank

for your buck as the super bowl advertisers. iwhat would the best dad before the show? ♪ >> pop politics.

closer military ties are sought between britain and france. they will discuss britain's place in the eu. >> iker soft has its head in the clouds as it will make satya nadella its ceo. >> google gets the clicks, but amazon doesn't deliver. retailer sees its lowest quarter of growth in five years. >> good morning.

warm welcome to those just waking up in the united states. >> this is the pulse, live from bloomberg in london. ,> a touchdown for kate upton why this year's super bowl ads could be the priciest ever. >> there is inflation and unemployment data. let's look at what euro-dollar is doing. we are at 135 as we speak. disappointing. it can see some of the credit numbers beginning to stabilize a little bit. of the short-term interest rates are stabilizing. we have some concern about the short and of the interest rate curve. we to watch the data. it is not a rosy level. deflation,tion or

blogger down the road. we were expecting higher figure. deflation hurting the eurozone. there are dire figures of unemployment. this is the weakest we have had in at least a few years. take tois it going to freak the ecb out? into doing something? the ecb took action the last time. they meet next week. what will it take for the ecb to become convinced that this data is becoming a problem? >> they will preempt with anything before gets too bad.

this is what we're are watching out for, inflation. >> let us talk about microsoft. they are making satya nadella the new ceo. i have had conversation with them. back and quiet. he is not loud or brash. he is a different person from a steve ballmer. is a reserved character and engaged. he is interesting. he has a lot of people supported him on the inside. he is very highly expected. not going to get that sort of pr angle from satya nadella if he does become chief

executive. we get experience and a high level of respect internally. he is but the company since 1992. he is a veteran and has led the internet search engine being. he drives the cloud services. this is a real area of growth for microsoft. they're trying to find their way in the new world. --seems innovation lives lies inuse other -- where you store data. he is very much loyal to the company. he says it is an inspiring place to work. >> it is an exciting place to be. if you look a we are doing other devices and services, it is an amazing spot to be in. we are innovating and taking to market a broad impact across

society. >> the question is going to be asked of investors, you look at 100 candidates. why hasn't taken taking so long to eventually, to a decision on internal candidate? at the you have to look ericsson chief executive if you're true leader was under your nose all along? >> that is a good question. >> all of those guys have said no, we do not want the gate. -- they gay get. .- the gig many a lot of the more worried about taking the job because of the influence of bill gates. they've only had two chief executives. bill gates is still very

involved in the company. this is a major move. >> there is talk that he has been focused. he told that in an interview. >> a full-time work will be the foundation for the rest of my life. we are enjoying that. i get to do it in depth. .'m not going to change that i will help up our time. replacen earth could the founder of microsoft? the man who has microsoft in his blood and bones? they could be john thompson. he is quite outspoken. he is leading the ceo search. he told steve ballmer to retire early. we need new blood and a new direction. he is quite outspoken and prior experience.

he is not an outsider. in a breath of fresh air coming into microsoft. they are still dependent on software, a dining area and pc sales are falling. >> he comes from the right part of the business, which is an area that the company will focus on. >> thank you. >> we'll move on a talk about what you need to know this morning from tech to telecom. more customers signed up for broadband internet packages. is about the sports package. i get excited about this for you as well. it is all about the sport.

2.5 million customers find that onto broadband. a big sports into the sports rights. i did the biggest issue is what happens over the next 12 months. what happens with the next round of premier writes get negotiated. paid $1.6 billion for three seasons. to 2.2 billion. how much can these companies absorb and how hard will it push next time around? tois sky doing anything bt's push? about does not even talk bt as a competitor.

they do their own thing. this is not just about tv. it is about getting broadband and getting them to sign up for a telephone line as well. if you walk the high street of the uk, there'll be a poster in the window. there's a bit of a buzz out there among investors talking about. this is a very competitive space. bt are pushing into skies territory and skies pushing back. >> thank you very much. >> the uk rime minister and the french president our meeting at an air base near oxford as we speak. >> on assignment what else is on the agenda, including a trip to the pub. where not allowed to say which

public, are we? i like to run my life that way to. but also they talk about? they started at an airbase and held a press, charlie. then they moved to the pub. they talking about military deals. they want to develop a drone together. they're just turning to test fly a drone, prototype. than $800 million for missile system tom helicopter mounted missile system. there talking about a bunch of stuff in terms of foreign-policy, syria and the like. this is the first time have gotten together since 2010. >> this goes back decades. has huge respect.

i think these of the companies that have excelled in the past and making advanced fighter jets. there is a relationship here that exists. theye bottom line is realize they have to have a drone. they are using drones. they are flying them out of the united states. they want to have their own european capability. as every cut specter military way to do thatly is through synergy. it has been for years and have not accomplished much so far. >> alysia today changes anything. that is the latest.

>> there is no one on the other side. what is on our radar. the company agreed to by uk-based natural motions. >> yahoo is the latest company to have a security breach. trying toified 70 break into a yahoo mail accounts. it was likely taken from a third-party database. there is no evidence that anything was stolen. >> the prime minister coalition government had ministers quit. the social democrat prime minister had pushed for an

estate sale with goldman sachs. the world's largest online , we will lookon at if they are worth it. this is after the break. ♪

>> good morning.

welcome back. you're watching "the pulse." we're looking at the euro. the reason for that is we have data out from the eurozone. the data is mixed. employment number's are still incredibly elevated levels. it is the inflation over the people will focus on. rates, itime they cut was to lower inflation. havingalk about the ecb a needle in its compass. that is including the inflation mandate. ,nflation is below target around the two percent level. below unacceptable. the threat of inflation is something people are talking about. and the markets are reacting to it with a negative vibe. piggy so much.

let us talk to -- tech. amazon suffered the worst quarter of growth since 2009. our international correspondent joins us from berlin. hans, the could've done better. amazon had growth and revenue, but only 20%. that is less than what they have been growing. they have strong numbers on the profit side. they will turn a full profit for 2013. investors want to see more and they want to see growth. the stock was down 14%. we will see where it opens and where it hovers around today. , at leastnot growing nonetheless last quarter like they have in the past. >> that is amazon, what about google.

tell us about how they are working with the super bowl. tothis is an opportunity talk about their sales advertising campaign when it comes to the super bowl. they will sell ads against ads. if you look at the overall billion, some of that is from youtube. ads and got people to click on the ad before they even watched before the game kicked off. >> the money involved in this is incredible. guy, you have more on this. good morning. google and amazon have

similarities. this is in many areas. they are trying to create ecosystems, one was to collect your data and one wants to sell you stuff. there are many similarities. we look at what they are doing, do those similarities jump out? >> their fundamental different companies. yes they want a bigger systems to capture as much value as they can. one is an advertising business. the goal is an advertising business. thin russella very martin -- profit margin. they want to sell you stuff. they could not be more different. >> it is google that is spending money on hardware. it just got rid of its handset business. companies that

it is buying. >> it is very interesting. their acquisitions are all about trying to closer to their users. nest is a company that smell -- cells smoke alarms. the window you are doing inside your house. that is very interesting. it is a better understanding of what human beings do. business.a hardware the kindle is a shop in your home. if it breaks they will give you one for free. that is how much they want to be in your home. it is a very different business. google is cheaper than i am going to buy. >> that is a huge problem going forward. some analysts say the microsoft makes more money on every nexus

sold. very big problem because of android. we look at the stock price, how much of that is due to android? off thisof the making system? how much is it worth to them question it is a hard case to make. >> were the government? -- where do these companies go next? different.s in the are massive spaces in which they operate. you still have the sense that we still do not know or understand what they are capable of. >> it is true. google has the more interesting upside potential. or the mo -- more they could do in the future. >amazon provides cloud services.

.t powers most of the internet it is that one tiny sliver of other revenue they have. it is much more interesting to look at google and what they're going to do as opposed to a traditional retail model with amazon. >> it is very effective. they were stopping by. coming up, the self-described king of fun. we will see what the billionaire .oes with his fortune stay with us for that story coming up next. ♪

>> let us take a look at companies on the move. manas granny joins us. >> i have it all for you. let's look at telecom more than tech. they're bringing in the customers. their sign up broadband. 150,000d is up customers. this is the best day for these boys and four years. fashion and leather goods did well.

there was a rebound in organic sales. it gives the rest of the industry. buyer washing machine and by your dishwasher. they miss their numbers, back to you. >> thanks. upton andome, kate her ad from mercedes is a hit and it has not been on tv yet. 137 -- $130,000, that is how much companies will splurge for one second of a super bowl ad. >> you to follow both of us on

twitter. ♪

>> welcome back to the pulse. i am guy johnson. these are the headlines. >>

>> in the 30 days of this year. that is the biggest exodus of

record.on this was in 2000 and five. this happens against em. >> manus cranny with the latest. saying right america's richer under attack. us.poke to i intend to give my money away. many years ago a taxi driver told me we were talking about different billionaires at the peoplet would comment on

. when we passed somebody's casino, he said 70 should tell that guy there are no luggage racks. that was 30 years ago. i got what he said. no luggage racks on a hearse, you cannot take it with you. i live by what i have. i want to give away. the rich are being demonized in the u.s. do you share the views that the rich are a minority under attack? >> i do. coming from new york city. the blodget was all about it. he wants to tax them an

exorbitant rate. i find people who worked hard on their own with their own , to hundred thousand dollars is not an exorbitant amount of money to be taxed. the rich are the ones created the jobs. percent that haveibute in new york taken an initiative and gone out and prospered and hired employees. a lot of those people don't bother to go to college because they are so wise that they do not need a college education to learn what the people want. i am one of those who believe that. , you couldin college

become an entrepreneur. >> how important is it for the wealthy to do it you are doing? lots of people ask me that. i can only speak for myself. i feel a responsibility that i have been blessed and i want to share it with those who are legitimate people and i shared with them. whether it is education or medical or the environment and improving that. >> what would you do? >> i must tell you, why sold my business the financial guy called in the big three came down. thursday i said goodbye to everybody. i could not wait to get out of their to do what i am doing now. that one wealthy businessman.

he spent most of his career on wall street. >> after selling his brokerage firm for nearly $1 billion, he retired from finance. the business dear to his heart is still thriving in lower manhattan. >> some of the people who get very wealthy on wall street spend the rest of their days in small islands of the sun. others by towns in vermont or the middle of america. shop.is a donut it turns 50 years old. somethingd to have that i could come back to you know my rent was paid. firm fornd spot his $900 million. more than a decade later, he still has the doughnut.

reality is they have fallen out of favor in the health craze. >> you need to have a little oil in your system. >> and world war ii, donuts were sold as nutritious food for soldiers? >> i should hope so. why do you think we won the war? you have some competition. dunkin' donuts opens two blocks away. >> we have one around the corner and they did not make it. we had one for the doors down and they did not make it. david actually beat goliath. >> it is been one of the biggest phenomenon is of donut history. >> i think the guy is a genius.

>> do you like donuts? peakyou are at consumption, how many per day? >> six or eight. at one sitting. >> dooming the holes? if it was a jelly, you break it in half. >> you really do that? >> pleasure is what life should be about. that is cool. that 10:40donuts

a.m. tom keene joins us. >> i love donuts. the surveillance new year is upon us. it is the year of the doughnut. i can tell you that right now. ave never darken the door of donut shop there. i will do that this weekend. that is if i can get to the super bowl traffic. things are starting to pick up the energy here. went down thee toboggan and survived in times square. we will survive. adam parker will join us. and last when its we've seen a 10 year yield break under 2.67%. there is some softness in the last 20 or 30 minutes of the market. we will look at microsoft and our team on the west coast are

reporting on the management changes at microsoft. michael wolff will join us. yahoo.ffiliated with far more importantly, this is the future of bill gates and his involvement. bill gates is only 58 years old. of life ahead of them. tom keene with surveillance and 20 minutes. america gets ready for super bowl sunday. >> the advertisers are getting ready for their 30 seconds of fame. what is it worth? we will discuss with the cofounder next. ♪

>> welcome back, live from london on bloomberg tv. >> many will tune in for the game. a lot will be waiting for the all-star commercial and up. a 32nd commercial will cost a whopping $4 million. >> are they getting the most bang for their buck? it is great to have you on the program. we are talking about this compared to the football we play in europe.

>> with our feet. >> it is a phenomenal amount of money. the symbol is special in many ways. there are not many events that bring you over 100 million people. .t is a highlight you get quality of attention. pilar not just watching your ads by accident. people tune in to watch your ads. are they specifically tailored for this event? there is some creativity that plays ao an ad that hundred thousand times is never going to be? >> it is an opportunity to activate the audience that is mobile and social. consumers are not just watching

tv. they have all kinds of devices. it is understood as a channel, it is about which network gets incremental reach. to movies on time just watch the ads. the ads are becoming the content. these were ads for ads. excitede not be as about the game. >> i guess that is the critical question. can you get better bang for your buck elsewhere? >> it is worth it if you use it smartly. kickstart ait to campaign that goes on in 365 days a year. people are answered what comes after.

that was pretty iconic. it is the most shared super bowl at all time. >> we were trying to figure out the world cup and prices. it is shared by so much more of non-americans. the worldwideo public, you get more money. >> there are 2 billion connected people who watch. it is just about the budget. if you pay all the money in the world for huge celebrities or massive production budgets, that is our people share with their friends and family. powerful create emotional connections with the audience, if it makes them laugh or censure is down her spine, that is the brand will do well. scarlett johansson with soda

stream, data that is a big part isthis sequence as well, spending money on david beckham worth it? >> that is a question i never thought i would be asked. raise awareness. what is clever about that campaign is how it uses social. everybody is talking about that. fromee brands moving away a tv event and make it a channel event. >> i think it is worth it. , what iswere to spend your strategy? ,e want to make a big impact

what campaign would be best? >> and can make people laugh or cry, but you have to choose. you want to make the emotional connection and get your audience a reason to share it. maybe it will give them social currency. maybe it is an altruistic, new charity. you not need a celebrity. you have yourself. you're off to a good start. you need distribution online. it will go viral. creating serious about toimpression, upload your ad youtube and hope people will share it. by specialist to put it online and have the right channels? you have social media experts level tweeted out so you get traction? >> how you avoid the prey? company and bya

distribution to guarantee it will get watched. you cannot buy -- guarantee the shares. oretimes through youtube facebook, there are many video sharing platforms. that is interesting. i did not know that. >> thank you very much. >> is the first outdoor super bowl in a cold-weather city, new york. it will be chilly over the weekend. the weather forecast a started to warm up. we will talk to our meteorologist, coming up next. ♪

>> welcome back. twitter has alerted me to a very interesting thing. price stability is front and center in the ecb. we had another dismal reading below one percent, remember the inflation below two percent. it is well below target. this videon watch

before it decides. >> i hope that made the video. watched american is the super bowl. >> i ready for some football? that is how may people will tune in for the super bowl this sunday. almost as many people as the population of mexico or enough to fill metlife stadium 1333 times. the first super bowl was in 1967 and tickets were $12. fans are outraged that they were so expensive. only $600.are .ou'll pay more on stub hub on the field, not all quarterbacks are life. peyton manning has the highest wilson is one of

the lowest paid starters making a base of just over $500,000. manning was drafted in the 1990's, russell wilson was nine years old. a record 1.25 billion buffalo wings will be eaten during the game. that is enough to stretch from centurylink field or the seahawks play to metlife stadium in new york 30 times. >> big numbers. low numbers as well. let us are with you. extreme weather wreaking havoc on ticket sales. has started to improve? >> we are looking at much better weather forecast then people were faring earlier in the month. , we saw theee ticket prices impacted by the

weather. the forecast is 39 degrees at kickoff with light wind out of the northwest. a good-looking forecast for the super bowl. when we did have the arctic and the big snowstorms earlier in january, the ticket prices were impacted by that. we saw a decline in terms of people wanting to buy tickets. the teams were far away from the site was a factor. that is seven to keep in mind. >> thank you so much. europeans atng to a public will not be watching the super bowl. >> they watch the rugby. pressill have a conference any time. they will talk about drones and how they want to build their own drones. they will go to a public -- but.

i cannot wait for that. that is it for "the pulse." ♪

>> this is "bloomberg surveillance." >> microsoft chooses an insider to move deion the gates-ballmer years. amazon disappoints as

world-class customer service leads to a world-class shareholder loss. i'm sure no one talked about drones in the conference call. will emerging-market the stress cost your 401(k)? good morning, everyone. it is "bloomberg surveillance." we are live from world headquarters in new york. friday, january 31. where did the month go? i'm tom keene. scarlet fu and alix steel with us as well. it is super bowl morning. -- super bowl morning brief. taking a look at euro area inflation am actually hit 0.7%, below half of the european central bank target in january. some eco-data here in the u.s.. 8:30 a.m., personal income and spending, 9:55, university of michigan confidence and earnings -- simon property group, mastercard, chevron. chinese new year.