1%. they want to share technology and they want the same synergies that brought vw so much success in their auto division. we will see if this bid is successful. >> thank you so much. hans nichols with the latest. up next, we will head to one of the biggest events in the world for the mobile industry. caroline hyde is on the ground in barcelona with a preview. >> it is a beautiful, sunny day outside in barcelona and it is heating up inside. in.00 people streaming among them, the chief executive of facebook and the chief executive of what's that, the two most talked about figures in the industry over the last week, the $19 billion deal that unfolded. i will sit down with the founder

. that, we have new events and new products being unfolded by nokia. in just a moment, i will sit ceo.and talk to the ono we will talk particularly about &a andkes of mna -- m growth in spain. ♪

>> more than 4000 chief executives are gathered in barcelona for one of the biggest mobile industry events of the year. consolidation has been a major theme of the telecom sector this past year. caroline hyde is standing by with the chief executive of one of the largest companies to resist a takeover so far. by ono's chief executive, spanish company, making its way into mobile as well. thank you for joining us this morning. talk to me about the growth that you are seeing, not only in customers, but internet and mobile as well. >> yes. our strategy is to have profitable growth. the growth part is very important. we just reported our last quarter results and we showed customers, but also

big growth on mobile. 600,000 lineshan of mobile. right now, growth means growing in broadband, television. todo you have any figures as how many customers you hope to add in 2014? >> no. it is very early. we will continue looking for growth in broadband. but i cannot tell you numbers. >> how is that supported by the slow what sensibly-short turnaround in the spanish economy? you feel you see the economy turning around? >> we see that every day. they are very positive, all of them. we are positive that expectations for this year are much better. we hope to stop five years of a

very depressed economy. >> you are talking about growth. you sound relatively optimistic. potential shareholders are thinking that too because you will be looking to sell shares in an ipo. what is the market reaction so far? >> we are working on it. it is our intention to do that. of course, we do not have all of the details and i cannot tell you many details because i cannot. we are already looking into the market. >> do you have any view on what sort of size of the amount you want to raise? >> not yet. i do know the market situation at this point will make a difference. we are looking for an ipo that will be a decent size.

number will be defined by the market situation when we announce the ipo. >> a decent size being in the $1 billion range? >> yes, about that. >> timeline, in the next few months? >> yes. you beingf talk about wooed by the likes of vodafone, liberty global. have you spoken to vodafone in the last few days, the last week? >> that is not an issue of the management. at is a conversation you may have with shareholders. we are not allowed. we are working on the ipo. to the digital agenda setter for europe earlier and she says she wants to see more of a level playing field in europe, less barriers and one central market. is consolidation going to be occurring as we see more of a

europe?arket in >> i think consolidation should happen. operators, good for the market, investment. it is very critical to invest in networks and they require a lot of capital. i think it will be slowly. we also have conditions for consolidation. barriers are not easy. to eliminate. but i think that is a very important trend. >> do you think it would be good to become bigger? >> yes, i am sure will. telco companies require a lot of capital. healthyin financially and having the critical mass that will allow you to invest. that is why we are doing this ipo. >> you want more money to be able to spend. tell me more about you as a female leading a technology company.

we are seeing more women coming to the top of the large companies. microsoft.utives at should women be more incentivized to lead? think it is a fantastic sector. the industry otelco is rapidly changing. it allows you to do many things everyday. innovation is great. i would encourage a lot of women because it is a fantastic industry. i enjoyed it a lot. >> thank you very much. ono sayingtive of critical mass is needed by the players in europe. still no update on whether vodafone or liberty hats come knocking in recent days. >> thank you. we will be back at the mobile world congress later this hour

and we will be live with the ceo of alcatel lucent for his first tv interview of the day. ♪

>> welcome back to "the pulse,"

live on bloomberg tv and radio and also streaming on your tablet, your phone, and bloomberg.com. time for a look at today's hot shots. human loop the loop in history. loop at a topden speed of 8.6 miles per hour. racepening world superbike in australia. up ande engine blew called smoke on the 15th lap. luckily, he walked away unhurt. despite the freezing super fans turned up to watch the second leg of the red bull crashed ice championships. ice crosss best racers battled it out over perilous jumps. of hot shots, let's get

an asset check with manistee. -- with manus. video makest that you kind of frightening. the german equity markets are confident. the italians are waiting to see the confidence vote in parliament today. that is the confidence index there. are is what global markets concerned about, a tightening, a squeeze. let me take you on a global trip. lending to the property developers in china, the market coming under pressure. that did not drive through into europe, but one stock story is driving the agenda. value for shareholders. vw shareholders definitely seem to be rather critical of the new arellion euros that vw about to spend to get a hold of the rest of scania. will that deal go through? how is he going to play out? a couple of other things coming

through when you look at that china story. some of the miners coming under pressure. rio tinto down. the copper producer is down 1.3%. lend tore not going to the private building sector in china or if you are going to squeeze that industry, what is he going to do to iron ore? the aussie dollar is also on the move. the germans are confident in terms of the ifo. 137.60. the aussie dollar is managing to turn it around from a low rate overnight. >> up next, alcatel lucent is back in the black for the first time in two years. their chief executive joins us in his first interview of the day to talk about the turnaround plan. we will return to the mobile world congress in barcelona when we come back. in the meantime, you can follow all of us on twitter. we will be back shortly. ♪

. .

>> welcome back to2" live from bloomberg's european headquarters in london. guy johnson is off today. here are bloomberg's top headlines. ukraine's acting interior minister says that a warrant is out for the rest -- the arrest of president viktor yanukovych. he was last seen on the black sea peninsula. in a statement on his official facebook page, it is said that yanukovych is wanted for killings of civilians. ubs is seeking immunity in investigations in the eu and u.s. the bank saved itself billions of euros in fines in november by disclosing to the eu its role in manipulating libor. they may be the first to report conduct and currency markets to european and american

regulators. italian prime minister matteo renzi faces confidence votes in parliament this week. it is the first test for the 39-year-old since taking office. renzi will address the senate at 2:00 p.m. in rome. for more on our italy top story, let's bring in our italian bureau chief. renzi faces his first confidence that. we are expecting numbers to be behind him because he has just unveiled the cabinet. talk to us about the cabinet. how important is it that these are the right guys to push the reforms through? >> obviously, mr. renzi is putting quite an ambitious program together. he has talked about reforming the labor market, changing the electoral law. in 100 days. not an easy task. he has tried to choose a very young cabinet, a small cabinet, 16 ministers, half of whom are women. clearly, the common theme is

used, lots of energy -- youth, lots of energy, enthusiasm. he is not going to have a big majority in parliament. he is not going to have that much time to get these really tall tasks done. vote, he is going to outline his program. what will the key points be? >> i think he is going to reiterate that italy absolutely has to change the way that it elects parliament. he is going to focus on that. he has proposed also eliminating the senate, which is now the upper house of parliament, and turning it into more of a regional legislature. and then he is going to talk about the labor market, reducing payroll taxes, giving incentives to companies to hire workers,

particularly young workers. i think those are going to be two really crucial points in addition to lowering the overall tax burden. this number has been floated in the press of trying to reduce the tax burden by as much as 8 billion euros in 2014. >> thank you so much, dan. let's get back to barcelona. let's return to the mobile world. caroline hyde is standing by with more. francine, i am now joined by the chief executive of alcatel lucent, michel combes. tripledk has more than since he took over less than a year ago. thank you very much for joining us today. the turnaround seems to be working. you have had your first profit in two years. are you still on track? turnaround is

much more than asset disposal. i took charge of the company one year ago. i didn't show up last year because i was not yet completely ready. i wanted to change the company in a big way. have changed the operations of the company in order to be more efficient and to be much more effective. we are leveraging around debt refinancing as well as asset disposal.

to disposal ofd assets worth one billion euros in the next three years. we have already done 250 million euros. we are well on track. >> now you're able to focus more on the innovation. what innovations are the areas you want to focus and? >> at the beginning, the turnaround is really around the industrial place. what i intend to do is have alcatel lucent back on track from innovation point of view. all the enterprise is moving to the cloud. what do they need? we invest a lot in ultra-broadband access in order to go -- [indiscernible]

there is a convergence in between cloud and network meeting the clout enters in the network and the network enters in the cloud. we want to innovate in that space. a veryay, i announced important partnership with intel in order to accelerate this. want to be aware of the context. whatever type of application you want to get, the network needs to know that in order to allocate the right resources to you for the best experience. in order to do that, we are increasing -- and we have secured a room partnership where we are developing in order to

answer these type of things. it is about security. we want to be the most secure network. theirne now is shifting digital life on the network. when your digital life is on the network, you want to be sure that the network is secure and that you have no risk with your data. >> that is a huge theme for mobile commerce in 2014. particularly after the fallout of the united states with the nsa revelations. our european players doing enough to make sure that my data is protected? >> we can always do more. that is obviously a very important matter. digital,hing would be all your private data would be there. you need that to be protected. we need to work altogether by providing the right technology.

operators by operating those technologies in a proper manner. in order, regulators to establish rules and enforce those rules. also, you as the user need to be decide if you want to put your data on the network or not. if you don't want to the data to be shared, you can select that to be done. we are starting to work in that direction. acceleration in the next few years. [indiscernible] is there a lobby group being formed at the moment? are you talking to other companies, networks? >> i wouldn't call it lobby group. wen you say lobby, you think

are trying to lobby in favor of something. thatndustry has realized we are going to migrate into the digital world. if we want that to happen in a proper manner, the privacy and security has to be tackled. there are insertion points which can reveal some weaknesses in the network. we just have to make sure that people cannot leverage that and get all the data. >> very last question, what about regions? you have a lot of competition coming from over from asia. we have huawei in china. where do you want to focus regionally? we are a european company

alcatel and an american company lucent. we are extremely strong in the u.s. we are extremely strong in asia. we are very strong in europe as well. we intend to play everywhere. do -- intend to [indiscernible] , to be a real leader in this industry. [indiscernible] the only fact that we have been partnershipsnce -- with intel on months i. this really shows you how really are and how winning we are.

>> michel combes, that is fighting talk. thank you very much indeed. chief executive of alcatel lucent really pitching his words. it is all about innovation now. back to you. >> caroline, thank you so much for that interview. samsung unveiled its hotly anticipated galaxy s5 at the mobile world congress. there is speculation the device will have a fingerprint scanner and a 16 megapixel camera. as samsung gets more high tech, it is forging stronger ties with google. the companies have agreed to share patents. sam grobart has more. together tonding fight a common foe happens all the time. game of thrones, house of cards. that enemy mine movie with dennis quaid. it is happening again, this time between samsung and google.

with the unveiling of samsung's latest flagship, the galaxy s5, it heralds a new era of good feelings between the two frenemies. last month, they announced a sweeping agreement regarding patents that will increase cooperation between samsung and google. it is expected that samsung will tone down development of its phone app, favoring ones made by google. previously, galaxy users were faced with this weird mirror universe of google and samsung apps that did the same thing. that should end soon with google apps coming out. appsamsung, letting google get more of a spotlight may be the most expedient. google wants a tighter rein on the android operating system. any company can use it and any company can modify it as it chooses, including cutting google entirely out of the picture. amazon's kindle products run on

android but all apps and services go back to amazon, not to google. samsung can sleep easier at night knowing that google has sold motorola, a hardware rival that was always making things a little bit awkward. it is not like there aren't other rivals out there. amazon is one, facebook is another and there is always apple. for samsung and google, things are a little bit like that episode of star trek where kirk formed the alliance of the klingons. they are friends, for now. >> he seems pretty convinced. still to come, protecting the world's data. we will should you help tech companies spare no expense in this super secure mountain facility. ♪

>> g 20 leaders have been meeting in sydney. we have been speaking with all of the big names including the head of the imf. christine lagarde told paul allen why she is disappointed with the pace of imf reforms. >> the dialogue that took place between the parties around the table. you had 20 countries, some advanced, some emerging economies. all of them with their respective policies, situations come a requirements and recognition that there are affects from the policies

decided in one country on the rest of the group. >> has the g 20 made any progress in resolving this disagreement or are we still stuck on that same route? tapering that we see is a result of the significant improvement of the u.s. economy. that in and of itself is positive. bey will continue to volatility on the markets as a result of this tapering. what is clearly helpful is the dialogue that was instigated by the australian presidency very for the emerging market countries to actually express their views, share their concern and for the advanced economies to appreciate that and be prepared to not only be mindful of domestic consequences, but also of what happens in other economies. >> there is clearly some tension

with emerging markets. is there anything the imf can do to provide support? >> the imf is here to support all its members. advanced economies, emerging markets, and over the course of time as we celebrate our 70th anniversary we have around the world depending on the economic cycles. we will continue to do that. we will continue to adjust to respond to the needs of the membership. also notedunique disappointment with the united states not passing imf reforms. crucial is this issue? >> it is disappointing. from not going to stop us doing the work that we have to do but it means two things. one, it does not equip the imf with a necessary long-term resources that are needed to come and help countries. imfnd, it does not help the

being appropriately represented. it is about credibility. >> is there anything the imf can do to engage with the u.s. to resolve these issues? >> what matters is that all u.s. authorities be on the same page is aonvinced that the imf necessary institution for the good of economic stability in the world area >> -- world. >> yesterday you came to the meeting alongside janet yellen. how has she been at this meeting? >> she offered to give me a ride. she is a very talented, very competent, very friendly woman that i greatly respect and admire. a differentpect approach from her on china and emerging markets? >> she will be competent,

demanding, thorough, rigorous. humane, very very attentive person. everything is combined into the chairman. >> christine lagarde they're speaking to us in sydney. up next, good luck hacking into this one. we check out the underground fortress in the swiss outs. it is taking security to a whole new level to protect precious company data. details ahead. ♪

>> in the wake of edward snowden's nsa relations, swiss entrepreneurs are trying to capitalize on other countries reputations for secrecy. hans nichols talked his way inside a cold war swiss army bunker. lake in jagged mountains looked picturesque but they are in fact the first line of defense for a data vault inside an old swiss army command center. surveillance and infrared cameras. doors must be closed before the next can open. fingerprint scans match individual badges. module entrance, one at a time. >> i am walking inside the mountain. it is about a 70 meter long,. i have gone through seven security matters -- barriers. i still have a couple more barriers to go including a

hermetically sealed door. >> we have -- >> a karate black belt and former french air force officer purchased the bunker, one of 16,000, from the swiss army in 2007. reservoirs of mountain water. not to drink help cool the servers, lowering the electric bill. clients can rent racks or rows of storage lockers or even an entire room. an air shaft for ventilation. there is a sick day, a post office and a map room. >> if cyber commandos try to storm this bunker, you can shoot at them through these apertures. cityself-contained designed for an attack that never came. -- theuse purity concept security concept, you have eight

layers of security access. risk isiggest security internal. >> would you have to be careful about is your customers. when they get in, when they give you a proper id, that is what you have to be careful about. >> they could be posing as journalists. >> they could. that is why we are going to check you before you get in. >> was that the best assignment ever? very james bond wasn't it? >> it was pretty cool. ,here is an aspect to this there is almost too much security. we could have an argument on whether there is too much security. the idea of commandos parachuting into the middle of a swiss valley and trying to break in, that is not going to happen. the larger threat is, can you get in through the cyber backdoor? that is really their big challenge. it is as much an electronic as it is fortress switzerland. my biggest take away from that,

inside that ball, it was massive. they have so much space for growth if this does indeed become the next swiss industry. we will have another package tomorrow about a company that is storing data there and just what they are offering. francine. >> all right, i am looking forward to that. hans nichols there in berlin. we are getting a little bit of breaking news from the u.k. high street. company hereis a in the u.k., has said that it is in talks with carphone warehouse about a possible merger. it has been confirming the talks. they also say those talks are in a very preliminary stage. they have until march 24 to lay out their intentions. for those listening on bloomberg radio, the first word is up next. for our viewers, a second hour of "the pulse is coming up. ♪

>> on the hunt for gannett co. which. ukraine's ousted leader -- yanukovych. ukraine's ousted leader. of mobile, mark zuckerberg takes center stage at the industry's biggest fair. >> we will talk tech with the founder of ariadne capital. good morning to our viewers in europe. good evening to those in asia. welcome to those just waking up in the united states