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tv   The Pulse  Bloomberg  February 17, 2014 5:00am-6:01am EST

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>> get ready. the mayor of florence is meeting with italy's president. thes about being named prime minister, we think. >> roosting outlook. >> made for strutting. debut and theek ceo. we talk about the british plan -- british rant going global. -- brand going global.
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good morning to our viewers in europe. to asia.ing happy presidents' day to the united states. >> this is the pulse. a how not to get burned by secondhand car. >> let's get to our top story. the democratic party leader is weting with the president as speak and it could mark the first step to a new italian government. let's hans nichols is back from rome. walk me through the next 24 hours. >> good morning. minutes, we could see napolitano a merge. renzi to form a government. what is the makeup of his
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cabinet? he will face challenges in the upper and lower houses of parliament and the challenge will be in the upper house and this is. what can you do to appease various factions to vote for him. if you don't, you have snap elections and that is an outcome they do not want. he wants to serve as the prime minister until the end of parliament in 2018. that would be the third prime minister was not directly elected by the people. in a tient turnover and prime ministers, let us say. italian prime minister's, let us say. a base of have support and is a populist politician. seessconi admires that and a bit of himself.
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they are from different parties and he is 39 years old. decided to work together on the electoral reforms. after that, all bets are off and if the government crashes, it will be after he and berlusconi passed through a parliamentary change and that could get you closer to a two-party system. i know you are firmly a parliamentarian and a three party man. we will not even begin to open debate on that. >> a can of worms we could open and have such fun. a big can of worms. very big can of worms. hans nichols is our international correspondent. >> japanese economic growth is falling short ahead of the proposed sales tax hike in
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april. a lot of people are saying they are not on track. it is one percent annualized and it is a huge mess. we can be blasé. the primeout in minister is embarking on a major experience -- experiments. importse more expensive and growth that is going nowhere. get thise a needs to profit passed onto consumer and that is not a given. >> is in will take a lump and the numbers will get worse. >> yes. if you are a consumer that is
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not growing, there is a massive and rapid aging. by 2035, one third of the population will be over 65. they need to get more people in the workforce. abe wants to increase the participation. he is trying to set some target for women and that is not a given that either. immigration laws are not a given either. they in japan has done their bit. will they do more? that remains to be seen. fire and hit the
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target. >> thank you so much for the very latest on japanese gdp. a slick login. the company was registered. we are joined from tel aviv. be the smallest acquisition the google ever makes. we're talking about telephone number acquisitions and this is a company that has no customers and no investors. it has no patents or intellectual property. it was registered two months ago and what on earth are they doing? ofy are buying the brains an israelies from military unit and they have come -- with a way to
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make logging into websites more secure. that is out a sound almost imperceptible to your phone. sound and hears the it tells the website that you are who you say you are. that is what this company is doing. the spokesperson for google said to me that this is an acquisition and higher. three bright guys are joining fold.ogle float -- that they were becoming nooglers. >> nooglers. i would say new googler.
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going's talk about google shopping and israel. how does that fit in? >> this is the smaller end of the scale and it is very early. of course we know the landmark acquisition from google. it is the fourth login. google is not the only one. and apple. giants really see a greatel and place to do research and development.
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they have the highest proportion of research. -- research and development. there are bigger sized companies. hugs -- >> all right. elliott has the very latest on the acquisition in israel. >> let's stick with technology. meeting with the french president on wednesday. david tweed is in berlin. what does she want? >> she wants data protection. citizens.erman she talks about coming up with a european communication structure by e-mails do not be sent
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the united states. this is what she had to say. >> we will talk with frets about how we can maintain a high level of data protection and our citizens. to sendld not have e-mails and other information across the atlantic. >> fits in with the discussion taking place. good to telecom -- deutsche aboutm has been talking wanting to have eu-only routing and we had an interview with the co-chief executive officer. companies that are in talk with the european commission and are talking about definitions of data protection for the cloud. this is something that is on the mind of european leaders and
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they are looking to do something . of google critical and facebook. what did she have to say? >> she was and took a swipe at them because his companies have european headquarters in ireland. difficulty with coming together. there areulty is that so many different countries with different levels of tax and and the swipe was that companies like google and facebook will --ose the companies countries with the lowest levels of data protection. she did not specifically say ireland. that is what her meaning was. that is how i took it. >> interesting. david tweed, from berlin. >> on monday morning, the ethiopian airlines flight that
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was forced to land was hijacked by the copilot and police arrested the man. route to rome.on american, miller, has earned a historic place and is the oldest american to win a medal, at the age of 36. germany has seven goals. years a slave has won the top prize. drama is named the best film and won the best actor award. >> coming up, these boots were meant for walking. our exclusive interview with the hunter's ceo. >> high-fashion and the
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highlight. a look inside lulu jet. expanding beyond the one percent.
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>> welcome back. you are watching the pulse. let's talk about currency markets. data came out from japan.
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the next few months will prove pivotal for the economy. a miss to growth is really growing gdp data. we are about to be hit with a sales tax in the domestic part of the economy. we have been higher and we are at 101. will we go lower from here? we will find out about that in just a moment. >> for more on the disappointing growth numbers, we are joined. >> thank you for joining us. abenomicssense of working? >> we need the three arrows to fire and everybody will be a believer. it is hard to be a believer and something that has not been completed yet. i am still a believer. i am concerned about the abenomics traits.
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correlation is making people more cautious. >> let's talk tactics and long-term strategy. over the next couple of months, how will work? >> a defense on what you think about the yen and what you think about the boj. the second point first, we are more cautious about it easing and the boj want some buy-in from the government and want to see more signs of reform. andave comments institutions can ease. that may not be happening. the second point about the yen is what people need to focus more on. which currency is the safe haven?
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it is the yen. if they unwind, they will be unexposed. we country. not want to -- the currency you do not want to own is the sterling. we are talking about one third of gdp. that is one sector i'm concerned about. >> the dollar yen is at 101. what are you expecting? >> it depends on 105-106. it should stop around there. >> what about one month? a it is more headlines and is bit lower. we expect that to happen. 101.89.
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market -- >> the market will be cautious, as well. the boj has credibility issues. , despite with the government is saying, they want to ease. >> what is your take on the euro-dollar. -- euro-dollar? short best play is to be the euro-sterling. boe is allowing the u.k. economy to overheat to productivity. only after that will they think about rates and going down. we know that during the over heating phase, you want to be
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long on the currency. i think the boe will be worried about what sterling is valued. the eurozone growth in the lack of loose policy -- >> let's talk about sterling. the barbells that you are them,g about, if we see is that a trade you want to put on? >> depends on the unwind. crisis --e payment you do not want to have a short position. it is driven by turkey or argentina and you will see a massive unwind that will derail all of the scenarios. you want to have that. >> interesting.
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the senior fx strategist. >> the london fashion week and .he boot maker debuts we will stick with the hunter's ceo later this hour.
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>> hunters stepped out in style for london.
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theheritage brand hit catwalk in the fashion show. talked to the ceo and jonathan ferro joins us for more on the business. >> they delivered when millions -- one million pounds of boots. year to think about leveraging that. it is a cool thing to do and we know the success story for burberry. is, this was a british heritage and was more modern. cooleromething that is and will get the youth on board. >> it is about being cooler and buying a brand style. >> sure.
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it has been immensely successful. >> is it mainly -- i cannot get my words out -- mainly -- >> on that side of london, i do not understand why people wear them on the two but when you get rain. leverage theto brand around the world and are looking to spend. they have aspirations for china and canada. those are big markets. they want to push it in the united states. business heritage, the has had an up-and-down history and they will be able to do that. the question is, a small independent company dealing with massive giants of carrying. how easy is it to do? >> consumer power. >> online is massive for them. let's you do not have to do a big --
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that is where you get a lot of exposure. peerord-of-mouth and presence is driving this brand. you have a great british heritage brand and a modern twist on it. i do not think this is as easy as many people make it out. sojonathan ferro, thank you much. >> we will bring you the exclusive shortly. coming up, flying high on a private jet. company withside a innovative ways to make money. >> we meet not to print or using cloud. give it right here. >> we are on twitter.
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fronting likewise to be found -- france in the plot is to be found appropriately at -- francine laqua is to be found that ,> welcome back to the pulse
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live from bloomberg's headquarters in london. >> i am guy johnson. >> the ethiopian airliner was forced to land a geneva was hijacked by the copilot. police arrested the man before freeing all the passengers and crew. fromlane was en route roma. the plan to march will take place after opposition leaders return.
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angela merkel has been on the front line of this story. -- will given control of give up control of buildings. gdp expanded at one percent from the previous quarter. this is an expansion of 2.8%. to our topet interview of the day. early this morning, i sat down with the company's ceo. what makes hunter's brand interesting. >> we appeal to urban citydwellers and people in the countryside. launching a be field ranger product that is
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more for purpose. takes thenical and boot to the next level. i think there is an opportunity for urban consumers to experience the brand in a different way as well. they can exist very well together. aring the week, they can have experience with boots and have a different need for the product. it has both uses for the consumer. >>, spec of the business get? had $100 million. how much bigger can the business get? >> we hope to get a much bigger levels. we think there is a chance to be global. right now inmazing terms of sales. the u.k. has always been our home market. we have great interest from china, japan, korea, europe,
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germany, italy. we have a great global potential. we have an open -- we have not opened retail stores yet. outs opening retail stores and that will be the start of a direct consumer journey. develop ayou business? you had a wholesale offering. you are now going to be launching a retail experience. we look at a humpy like burberry who wants to control the channels to the consumer, how are you going to go direct with the consumer? will it be a mix? how is it going to work? >> our opportunity is to divide a amazing consumer experience. where we can do that with their own stores, that is great during the weekend partner that is great.
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it we can communicate the hunter experience. we think the web presents an amazing opportunity. we have very good sales in the u.s. and the u.k. over quality trading. we were surprised about the readiness to buy wellington boots online. that is our largest opportunity thee expand hunter around lobe -- globe. we are faced with the kind of financial firepower, how do you grow? >> it does help us with some of the things a big house can help with. i do think that in certain areas, it is great to have a big group behind you to support. -- we other side, we have
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can be much more entrepreneurial and faster. we can move at a different pace. , let usrms of the pace talk about global development. how are you going to roll this brand out around the world? >> concentrating on the u.s. and the u.k., that is our primary objective in terms of developing the business there with retail and great wholesale and online businesses. canada is doing extremely well for us. and asia, we don't have a presence in china yet. that is a great opportunity for us. those will be our major markets along with germany where we just opened up a dusseldorf show room. there are key markets that we will concentrate on for the next couple of years at least to make sure we get those right.
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there's so much opportunity in those markets on. >> a private equity investor usually has an exit in mind. be something that winds up being consumed by something else? >> activity many different options. as you said, one of the options would be to be part of a group where there would be synergies to be had. that is one option. for someption would be to see the great retail potential and want to invest in retail and by the brand and develop a larger network of retail stores. it is early days for us. there are several interesting kinds of opportunities i had for hunter. a great interview. it is refreshing to hear a lot
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of executives say they do so much online because it is a cheaper price point when you buy the boots. you know what you are getting. >> he was apprised people do it. these are the things you want to know if they're going to fix. if you have a number of pairs, i know that a pair that is size 11 fits me. there is a huge range. you can buy the mind or online. you get them in all different styles. -- in ae you and if pair of very bling hunter wellingtons. >> from high fashion to the high life. >> bloomberg is it the business of the slopes. we are going inside lunar jets. it is an independent private jet broker. businessanding its
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beyond the famous one percent. hans nichols joins us. >> it is a remote valley, 23 hours -- two to three hours by train. there's one way to make the journey last -- less painful. private is an option that may be getting more affordable. many jets offer speed and convenience in a market that overcharges. are -- you want people to pay the best price. we want to make sure they pay the fair price. >> it is a big difference from irregular flight. you can choose the size of your plane and exactly when you want to leave. >> you will go for a weekend from london. we take your plane on a friday and you come back on a sunday
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evening. spend three hours traveling from point a to point b. >> you will still need your passport stamped at customs, though the lines are custer -- shorter for privates. is get you closer to the slopes. just a short ride away in your executive limousine. what about that budget price? and we can make it for four people. .8,000 for flying private hans nichols, bloomberg, geneva international airport. .> he is here now he is definitely in the one percent. is there a faster way to get to birdie a? >> it depends of the weather. greatather is the
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democratize or. there are certain airports closer to the resorts that you intohrow into be -- fly because of the beacon system. the question becomes helicopters. base, heopter to the signed take the gondola up. if you are bolded in helicopter all the way to the top and ski down. there are options. >> i would've thought that hans nichols would be out of the plane at 35,000 feet pair shooting in. i can see it now. that is the package we do get made. >> and it's a little bit disappointed that you did not parachute in. >> for next year. i will be our arrival for dominoes. we have all planned out. we still have our cast extent
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oil field trip to do. you have a lot of travel ahead. >> it is getting hard-core now isn't it. expensive know that erie and let us work on it. thank you so much. >> let us talk about the european markets. off on an the week high, gains of one percent. these are gains almost across the board in europe. things are boring. the euro is there a dollar 37. plenty more on top of that. finishing moves today are happening in the italian bond of market. the yield on the ten-year is now 3.66%. it is down another couple of points today.
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instability, forget about it. new investors like it this way. another potentially unelected prime minister taking away the possibility of elections. >> i couldn't possibly comment and thearkets operate intricacies of the bgp market. let us to say that given what happens with the central banks, these men a be the fairest markets to understand. >> it depends and if you want to take on the ecb or not. soros raises his stake. >> how not to get burned by a secondhand car. you are getting ripped off and go to the dealership.
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>> the lego movie led ticket sales in the u.s. for a second week. the film from warner bros. collected more than $48 million. favorable reviews and lack of competition have helped the movie. this would help the firm.
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it is not disclosing the financial terms of the action -- acquisition. >> george soros has boosted its stake in tether. as the world largest maker of generic drugs. now for more on teva. a big a big bold bet by soros. >> that is right. he did not become a billionaire out of chance. they have boosted their stake in this since last year. he holds about one percent of what is the world's largest maker of generic drugs. this is a $57 billion company. percentccounts for four of the asset -- assets under management. why is george soros going into
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teva now. , among theery cheap cheapest of the global pharmaceutical companies listed around the world. that iten very vague could be a takeover target. it is in the process of restructuring, letting go 10% of the workforce to get $2 billion worth of cost every year. this is aos thinks bet taking. they are doubling down. the shares are up 10% so far this year. they are up a little bit more in israeli trading. he -- they are still facing challenges. start, it's ms drug could face generic competition. contribute about half
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of its profits, it could make a big dent in its earnings. at the same time there is a new ceo. ideas that his predecessor had. s biggests teva' shareholder. they are pretty risky. they argued in court that a patient that another drug company has a branded drug ought to know longer be valid. sometimes you lose. they have had today multibillion-dollar settlements to pfizer. there can be reward where there is risk. soros is hoping for that.
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taking so much. > >> this is the latest in our series of entrepreneurs. one entrepreneur think see his way finally to stop getting ripped off when you buy a car. the company is called. >> i do know your spark plugs from your alternator. buying a car can be an expensive business. so one off -- entrepreneur got her fingers burned, she decided to shine a light of a secondhand car market. it. test drove it all seemed fine. about three months later, something major went wrong with the car. is isized that all that not a record of maintenance and
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repair work. that information is available. it is out there. third ownerond or cannot access it. motorietyt launched where you can see all the work done on a car. it creates an autobiography that is stored in the clouds and passed from owner to owner. >> your background is in marketing. you know your way around the car? >> no. i might get confused. a lot of the things you learn in any business is transferable. in it for the garage? >> we send you a reminder. they have to verify the work they do on your vehicle. >> joyce to disrupt a business that is digitally behind the curve.
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now all she needs is critical mass. does she need funding? >> that is an interesting one. we hope we are a disruptive business. theill transform the way automotive set manages. secondhand car dealers, the game is about to change i am sensing. -- it will be bought by somebody big, like one of the big car dealers. >> let us go from cars to italy. rezi.ady for we wait to see. that door is being guarded. we are waiting for the president to come out. >> we'll be back with the latest on that.
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that was 1030 a.m. local time. >> one would've thought so. we will be back with that story.
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>> we have breaking is that of italy. >> we have a new prime minister.
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the italian resident has just asked renzi to form a new government. we have a formal government. thing is toortant find in the finance minister is. what we just had was a brief statement while we were in hasercial saying that renzi accepted to form a new government. we do not know how it will be formed. we were looking for statements from the palette, no. >> they been meeting for over an hour and a half. this decision is just coming. the italian president has asked to form a new government. hans nichols joins us.
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will be the youngest post-world war ii premier. >> he is younger than mussolini was. as far back as we can go, one of the youngest leaders of italy. four hours, what personnel concessions did he make the opposition? he faces votes of confidence in both houses of parliament. >> in terms of the longevity of this administration, who will be in the administration? the longevity is this is pressing. technically runs until 2000 18. probability wise, it would suggest that his prime minister ship will not be a long one. we will see. we will see how he can navigate the waters and extend and stay for this life of this parliament. >> figure so much.
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good luck to him. the timing seems tricky. regan and herh special the player. we will see you tomorrow.
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