>> cementing the recovery. european business leaders and a livery of megamergers. ships for the malaysian jet and the flight data recorder. >> will robots steal your job? good morning to our viewers in europe. a very warm welcome to those

waking up. >> i am francine. we are live from the european headquarters in london. it is monday. they have won the bidding contest for the ff are and the deal is valued at over 17 billion. >> joining us is matt campbell. is it finally over? it seems that it is over. 23 billion dollars. the new shares are the subsidiary that will be at 17% this morning. the markets like consolidation and they would like to see big money spent. this particular aspect of

this transaction may be over. cases andd be legal there is talk that we could be looking at consolidating the mobile phone sector and this is just one cork in a big machine. >> there is a lot going on in the telecommunications space and this is everybody reevaluating their strategy and we have seen that. attempts soorted far. literally, this is a stage where the company is thinking about doing big things. >> it is somewhat late. the next hour. where does that leave the french telecom market? >> we are going to look for some kind of mobile consolidation and

a full-service telecommunication operator. more likehat it is three and the question is what happens to the one that failed to buy and. they will go from the hunter to the hunted and the smaller player in the market is a long way down the road in terms of execution. >> they are the holding company owned by the family that are wealthy french industrialist. on buildings signs around london, for example. the idea would be to sell those. the chief executive officer is attached to telecoms.

telecomng at the landscape, there is a story we you told is the industry that will consolidate the most next year. >> i think it is. fran says gone through one round isdealmaking and there probably another. the united kingdom is interesting. it is quite standard to have quadruple play efforts and your home internet and tv. in the u.k., we do not have that. we have not had those converging deals where mobile is bought. that is something that a lot of people who watch the sector will mean consolidation in the sector. >> in 2000, we talked about disruption and tnt was there. new.thing

>> no. they comes back in style eventually. what's thank you so much. >> this is a vintage tnt boom. m&a the.e the the ceo,e led by bernard. >> manus cranny has been speaking to industry insiders. what is the take on the merger. >> disruptive. not resist it. i'm sorry. i am five minutes into the day. it is about taking volume out of the system. and that debt problem is what my sources are saying. on thee committed expenditure front and want to

get up off of the junk status. the regulatory hurdles they are trying to get over. the billionaires are the characters who are the major shareholders within. so, it is all about the billionaires. i'm being told that it is slightly against what the members on the board are saying. it is the billionaires that are pushing the deal through and it is a game changer for some of the other players. this is a megamerger that is five years early in the world of cement. >> let's talk about how the

authorities see this. >> it is going to be hard. 35%.y the great overlay is in europe and that is where the challenge will be with the authority. with that in mind, that is big. have pricinghey issues here in the eu. it is being investigated. you. is a challenge for will the chinese people to sign off on the deal? mergers arese, and not something that go together. isength and identity is what behind the deal. >> ok. the concrete reinforcement.

not too disruptive. >> thank you so much. it is a big deal and there is a >> is this thesm structural reform that they have delivered? to deliver the structural reform for the political process? >> this is playing a part. let's talk about another story. ships that are searching for plane signals -- phone by aed on the reporter from bloomberg tv in malaysia. what they are searching is very deep and we are starting to get some development. the signals from the black boxes could be a very significant one.

we are confirming that the chinese vessel detected pulse signals, two of them. they were courted and -- recorded. they came from the black boxes and from the flight data recorder and the cockpit voice recorder. >> actually, i want to take it from here. the royal british navy is sending a ship to the area. can you tell us more about that? what is the timeframe? announced on sunday in malaysia and it was two days crew wouldhat the

arrive in the waters where the ings were. rememberss, we have to that this is very volatile and it could get up to 5000 miles -- the search effort will be a significant challenge. what will happen next? we will get an update shortly and a few more details on the latest developments for the search. of the nextnse 24-48 hours and what it may bring. once we expect a briefing from the malaysian transportation industry in the next 20 minutes -- waitingwinning

for confirmation. it is a significant lead and it of finding the plane somewhat intact. research has is gone past the 30 day mark that was initially have notby experts to happened at all because the battery life in the boxes should have only lasted 30 days. with all of that, time is of the essence. still be enough power committing from the black box to facilitate the extended search. they say it is an important and encouraging lead and that expectations have to be managed because there is no certainty that these are from mh 370. >> thank you.

that was randy from bloomberg tv in malaysia. >> what else we are watching is microsoft going all hollywood with sarah silverman and seth green. layers wererld cup involved in the rollout in june. bikes voter turnout has doubled from the previous election and they are picking karzai's successor. the pro-kremlin demonstrators have seized holdings in the eastern region of the ukraine. they are calling for a referendum to join russia. the ukrainian government is blaming russia for creating the unrest. >> can robots replace you?

we will find out. stay with us. >> robots are one of the themes the biggestis industrial fair in the entire world. angela merkel is here. it underlines how important this is for the economy. as i mentioned, robots and computerization. i will be back with more.

>> welcome back. -- are watching i will flash the numbers the bottom of the screen of the companies that have been struggling as of late. reflect disappointing figures coming through for the company. in the meantime, as you digest the figures, i will talk about the indian rupee. we are looking at an interesting five weeks for the currency and we have seen a number of things written lately that talk about the fact that we could see a potential downside for the rupee being greater.

there is a potential downside for the rupee. 2/10 of one percent. india goes to the polls today and they are starting to go to the polls. this is a massive democracy. 1.2 billion people. look behind the process. >> india is the largest democracy and this is the largest selection. 815 million voters. woman andevery man child in north america and europe.

it is equipped with almost 2 million electronic voting machines. the job is to choose more than 500 lawmakers and the party that will run the 10th largest economy. whoever wins will rule a country that is home to 1/5 of the world' people. india is a colossal country and colossal challenge. >> we are joined now. .he economy >> it is a two horse race. bjp, thethe nationalist hindu party. have -- her side, you

is interesting thing is who the front-runner. india has had the same crime minister as an incumbent for 10 years. party has really dominated indian politics since they became independent in 1947. the bjp is coming in with a lot of support. keep in mind that the pulls are often wrong in india. polls are often wrong in india. one of the reason why business like seven and one of the reason s we have seen the rupee coming on is because they think he will win this election. >> thank you so much ryan chilcote with the latest on the elections.

us get more on a take of what is happening from a business point of view. an onlineined from a i travel agency. how should you see these elections and what would be the best possible outcome? >> i would want them to come in. from a governance point of view, he is the best guy around. >> simple as that? indiaave done business in and it is difficult. -- governance is a problem. time is of the essence. it is not of the essence to them. it is difficult. >> you have a company that has investments and sustainable

education. remains a big unknown. what is the thing that the new person in charge has to do? it seems like it is difficult to get a handle. >> there are 1.2 billion people in india and i suppose that you have 600 million who do not have any electricity or running water. that's all they want. they want electricity and running water. next 300-400 million people want education and employment and governance. the last 200-300 million want infrastructure and governance. means addressing corruption. it is so large with the congress party that it is difficult to operate. -- augusta.ustom

the italian minister is in jail and no one has been charged in india. >> how concerned do you think that extra businessmen would be about the fact that there is still a big religious question hanging over the potential administration? what's it to be a problem. in the state elections, out of 90 muslim constituencies -- elections,, he won -- in the urban elections, he won 17. the muslims do not think much of what happened in 2002. look at the congress record in 1984. people were going in and killing

them. television interviews of congress leaders who are leading the attacks on television. none of them were charged. but yeah. emerging back to the economies. we look forward. the worst scenario is the fragment: june. how -- coalition. thecan you push through referendums? >> there is a coalition and there has been for the last 10 years. you need 272 seats to run the country and there is a coalition now. bjp alliance is concerned, there will be around

the 210-220 mark. is -- to a lot of business leaders that i talked to that are happy about what is done. >> running a region and running a country. you cannot scale one to the other. >> no doubt. has he even run a state? you run a small country before you run a large one. >> it is the scale of issue here. he focuses on a region and delivers a total -- is that scalable? given the nature that the problems that india has. if they win 220 seats or

whatever they win, it will be all over india. > how much of it? >> he is the leader and he was nominated by the party. know if you will deliver, as well. , it will be his first year and there's a lot of opposition and vested interests. a six under million people want electricity and water in the 21st century, it is a total shame that they do not have it. >> it is an absolute scandal. >> talk about corruption. where does the money go? >> investors are very concerned about putting their money and. leaving that to a side, what does the elected coalition need to do for business?

>> i talked to a friend of mine setoutheast asia and they and had a man from minnesota in that region. him.want to see to cut the story short, here is a list of all the secretaries of departments, labor, finance, etc. they are programmed so that when it rains, they know who it is. a union leader turns up and says that they want -- lancet -- labor secretary and the union leader disappears. hopefully, not permanently. >> not permanently. but from that site.

that is the point. you won't governance. >> yup. >> yup. that is the founder.

welcome back to "the pulse." i'm francine lacqua. >> and i'm guy johnson, and these are the bloomberg top headlines. >> the latest reefing on the missing malaysia and jet is starting now. ships searching for the jets .ound pulses it may be the biggest breakthrough since the plane disappeared a month ago. >> hundreds of pro-kremlin

demonstrators have seized official buildings in ukraine's eastern region. the ukraine government is laming russia for stoking unrest. the west african nation to the number one position after overhauling its gdp data for the first time in two decades. in an exclusive interview with the world bank cfo weighed in on nigeria's growth story. is a country where growth is very rapid. five percent per annum for more than 10 years now. we have to make sure it is sustainable c and inclusive growth.

we have to make these things happen. it is part of our mission. >> to the set to post a record profit of $19 billion for the year. turning back time to stay ahead of the field. they're replacing production line machines in certain cases with people. it is reverting back to craftsmanship. reporter automotive joins us from tokyo with more. can kyoto be more productive by using manual work over machines? talk to us about these goals. iskamesama in japanese. i'm doing my best to brush up on my vocabulary. at person we spoke with toyota, at the oldest plant in japan is a half-century veteran of the company.

he is really one of their gurus when it comes to the toyota production system, which for so long was such a vexing system for other automakers and manufacturers in general. thisa has always had advantage on its competitors in the automotive industry from a manufacturing excellence perspective. the big believe is on developing people. what they're doing here in japan is at about 100 places throughout the plants reverting to manual labor, putting it back into the hands of people, and really making sure they are the .asters of their machine rather than letting the machines be their master, if you will. >> are they the only carmaker going in this direction, wanting more skilled workers instead of machines? -- it is ay

different approach across the automakers. typically, you pay a skilled workers quite a bit more than you pay a typical hourly worker. that is really the case in particular in the u.s. plants that i went through covering the industry in detroit. in toyota, they take a different approach. they really expect all of their workers on the line to be skilled workers. i think that is something that see toyota get credit for from experts who go through the , ands at these automakers even outside of the automotive industry. >> thank you so much, craig trudell. tom keene, what are we looking forward to today? >> we will touch on the malaysian airline search. francine, we will look at the

equity markets, the pullback in some of those highflying momentum stocks. join ustin adams will from wells fargo. she needs profitability in 2014 to make equities move higher area and arianna huffington will join us at the 7:00 hour, the darling of the media with a really profound impact on american media. we was the to ms. huffington about her new book, "drive." >> we are really looking forward to that. >> iwatch "game of thrones." i saw the first episode twice. they gave me the dvd for it. this is what i am really watching. does this bring you back? this is 30 years back, francine, when prince william was the baby in the arms of princess diana. here we are, the redux in new zealand. what do you think? >> they look a bit the same. i am amazed at the duchess of

cambridge. she is carrying the baby, looking as if it is nothing in the world, no bags inside. that is pure class. >> you think they would have three or four oh pairs of the trip. my guess is they have three. >> i think she only has one and i think she is spanish. we will have plenty more from baby george. mr. robertson with a real commitment to the new zealand economy. it is a celebration for england. i think it is fabulous to see them out and about, showing the flag. agree., i we will have more from tom with surveillance in 25 minutes from now. kids, i would my just walk off the plane with a child with no baggage. talking of things that are

having a tough time relaxing, the markets are under pressure. >> they're having a bit of fair pressure off the 2008 highs. we have had a cracking run on these markets. stocks just pulling back. as tom said, some of the technology stocks are being sold off in the u.s.. that is carrying through into the european session. i want to give you some of our bloomberg stats. when it comes to technology, we're down 0.8%. the industry has rallied 108%. the valuation is 20.5 times earnings. way above the index. it is trading just under 15. with that in mind, we give you a bit of a reflection. here are some pretty big news stories going on. m&a is one of the biggest names in the market. investigations

they're going to have to solve. good luck. nokia is down, arm holdings lower. one thing, i as i was reading this morning. every friday we have positions of foreign exchange traders. information disclosed by the cftc, the futures regulator. the s&p 500 is down. the dollar, high. traders have become the most bearish, taking the most bets on the bearish side of the dollar in four years. that.e like back to you. >> manas, thank you so much. manus cranny with the very latest on markets and currencies. >> let's bring in ryan chilcote for more. they lost 62 million dollars. investors were expecting htc to

lose money, but they weren't expecting them to lose quite this much. one thing to note is this does not include the numbers, the m8es figures for their ine handset. it has a five inch screen, hd screen. it is an update, an upgrade from the phone last year. physically looks very similar. the issue has been the last two years, declining sales. they're spending less money in marketing and getting more competition from lenovo. this is a little backward looking. it is worse than what investors were thinking. markets are close to there, but people will be paying attention to what happens that only with that handset but in general. the cfo has forecast increasing profitability and sales for the rest of the year. bey are hopefully going to hoping this is a turning point for the company. >> we will have to see how they decide what route they go down.

you so much. ryan with the latest on htc figures. ts.all those great adver let's carry on. microsoft's xbox is selling big. its entertainment studios unit told bloomberg is committed to six original television shows, including halo. steven spielberg can be involved in some of these, and there are more than one dozen projects in development. is microsoft actually doing this. jon erlichman got a peek inside the la-based entertainment studios. inside this low-key santa monica office building, microsoft is plotting its tv future. it is tied to this. ask box entertainment studios is a unit of xbox created to make original tv shows. this is a startup with the help of microsoft.

led by longtime hollywood theutive nancy tell him, robot thriller called humans, a reality show on street soccer ahead of the world cup. to watch, you will fire up your xbox and if you are one of 48 million members of its online entertainment net work, xbox live, you can stream xbox originals the same way you would watch netflix or play interactive video games. microsoft may also start partnership deals to distribute shows outside of xbox. shows will also be interactive. he will be able to do funky stuff gamers like to do that is different than line under couch watching cable. microsoft is doing this to keep xbox loyalists happy, but also to broaden its reach. it is estimated each xbox sold is worth $1000 of purchases to microsoft. the number would climb if tv is a success.

microsoft has a goal of making xbox one the anchor of its home entertainment network. places todayl tv right here on the wall. >> totally tech. feel, ag to that tech ping-pong table, a well-stocked wechroom, and -- >> commemorate all our successes by ringing the spell. games, but that the tv shows, begin. i could've watched a lot more of that. >> as ever, a great package. will be coming up with tech feed. will we soon be working alongside robots? taking our jobs? that is the big question. we will be talking about that next. and plaster, some of the ingredients found in counterfeit pills. we will take you inside the $75

billion black market for fake drugs. ♪

>> welcome back to "the pulse." live in london on bloomberg tv. >> germany is renowned for its manufacturing or i was very that the world's largest industrial fair in hanover re: europe editors david tweed. he would get a look at the latest technology trends.

david, merkel has been there, what is the main message? >> you have just underlined how important this is. this fair was established in 1947. when you think about it, these fares go back to medieval times. angela merkel came here last night. competitivebout trends. reached trade talks which is very near and dear to her. communicate to the participants here at this absolutely enormous show. i've been talking to some of the participants here. they're pretty optimistic about the outlook, not just for germany and europe, but also all around the world. the us economy, the chinese primey, the chinese

minister was here talking about the bottom line for chinese growth. show has gonel very well here, focused on automation, guy. >> all right, david, thank you so much. we will be back with david tweed shortly. toyota wants to get back to basics. >> the carmaker is envisioning a future where humans take their place alongside robots. you heard me correctly. it is thinking a little counterintuitive. >> are joined by david wood, chair of the london futurists meet up. we are excited about this conversation. it is the biggest transformation since the 18th century industrial revolution. >> it will be incomparable. the way that robots are taking over more and more jobs, formerly, people that humans will never be displaced. then, gosh, they are displaced. whether it is in supermarkets or banks, journalist jobs will be

down. robots are quite good at hacking together a story based on data and making it sound as if it is written by a real person. more and more we will be down. challenges us. do we live to work? would be better for the robots to do all the work in us to focus on what we would prefer, leisure, creativity, self-expression. it is going back to some of its old school guys who have been bashing metal for years. what the duties guys is re-engineer the robotic process. they have learned how to take costs out from certain processes. you program robots, they do a great job, they build cars fantastically, but they're not forget the creative side of things. >> a lover to it is doing here, combining humans and robots it for the same work. we have to learn to race with the robots rather than racing against them. it is hybrid intelligence.

robots are going to get more intelligent. the current robots are not for a bright. their program to do one task and do it well. increasingly, they will be able to look and see if they do something differently it would be more productive, more efficient, safer, whatever. that discussion is going to continue. all the time, the boundary between what humans could do best and robots can do best is going to change. years,in 20 years or 30 how long will it take? you're talking about extreme were robots take over. did your jobs and we just have a leisurely life third certainly, that makes no sense. >> think it does make sense. all a difficult, dangerous, challenging jobs -- >> you were talking about white-collar jobs. that seems dangerous. we have seen a lot of cases of that recently. journalists do not do their job on the front line. the bulk of legal secretaries do not do the job of the frontline.

>> people's people's white-collar job facilities, but they will be different heard what a lot of people do now will be done by robots instead. journalists were backed up by huge typing pools. there were back on clerical assistance and resort teams doing research. more more research is being done by automated tools. the boundaries are going to change and increasingly people will be challenged. what they really want to do. we are not put on this earth to work. we'll put here to self -- >> should be become more clever? i need to make sure my new judgment is better. worker, for another cap i need to make sure i am so much better than the robot, every single step of the day, every day. >> i've have silly show the currently your judgment is much better than any algorithm. but the algorithms are getting better.

if you think how do you do the very scenes you do, your various rules europe lying in your head. there's various background knowledge. eventually that can be programmed to robots and software systems, two. whenever somebody like me comes on your show and talks, the robot will be able to fact check in real time. you will be able to put across the killer question that makes a conversation even more interesting than it is now. >> we are sleepwalking into this already. people talk about singularities happening, that is where machines become aware. that is something that people are pointing to. you are the sea trends underway. we spent a lot of time in this program speaking about wearable technology. fiction,ok at science people have got things bolted into their bodies not onto their bodies. it is not a big leap of the imagination to go from figuring out what to wear with my close to having it implanted in my body. >> we are dangerously walking into many of these things.

technology gets better behind the scenes and suddenly it is here. then we wonder where it came from. april laughed at wearable technologies and say only geeks will where google glass. 10 years ago when i was in the smartphone industry, people said only geeks will use smart phones. normal people want to this thing. guess what, they are everywhere. ipads are everywhere. it was not even here five years ago. it will be the same thing with wearable technologies. in two years time, people will have google glass or apple glasser samsung glass, which is constantly augmenting their intelligence. we talk about unemployment every day on the show. citizens of humanity need to be productive. we have studies showing that this is how you justify your existence in some parts. is this something that futurists and look into? >> is something we do look into. it is in flagged up as a key issue of our time. 1930's, we the

talked about the coming technological unemployment. show in the the years ahead you have more people talking what technological unemployment. more people talking about the need to not work 40 hour weeks but to job share. can we foresee all the ups and downs of that? can we see all the bad things echo is why many to discuss it hard and fast. chair of the, london futurists. we will be back in a couple of minutes. i feel slightly unnerved about this conversation. >> we will see in a couple of minutes. -- we will see you in a couple of minutes. ♪

>> i have never seen an executive as committed, as intense, and as hard-working as larry. he is not going anywhere. vice-chairmane speaking to francine a little earlier. -- >> next weome have a quick currency check. >> dinner french finance france needs more growth and employment. he says the needed balance between deficit cutting and growth. this is a big battle that france is about to have a the commission.

he would discuss the french deficit land with the commission. that will be the big story moving forward from france. that wraps up the show. "surveillance" is coming up next. >> tom keene and his team. have a great afternoon, everyone. ♪

>> this is "bloomberg surveillance." >> facebook and twitter lose momentum. attempt toparties

triangulate malaysia heirs position on the floor of the indian ocean. bitcoin acolytes will hold a conference this week. this is the value of bitcoin to them. good morning, everyone. this is "bloomberg surveillance." it is monday, april 7. i am tom keene. joining me, as always, scarlet fu is with us. she survived game of thrones. adam johnson is with us. i, too, survived the game of thrones. here we are, overnight we have the german industrial production rising for a fourth month in a row. this is a sign that growth in europe's largest economy is continuing to accelerate. we'll see what the imf has to say about that later this week. economic data in the u.s., we have consumer credit, that is it . first-quarter earnings kickoff tomorrow. we have jpmorgan later in the week. what everyone is talking about, ncaa finals.