>> the bank of england releases minutes this hour, investors are watching closely. for russia'sng biggest beer maker. we are live with the company ceo. rejected again, shoots down another bid. shares of both companies dropped on the news. welcome.

i am an edwards. edwards. we will show you the world's most expensive cigar. story.et back to our top the bank of england will publish the minutes from its latest policy meeting later this hour. investors will be searching for any hint of dissent among the members of the monetary policy o committee. i think there is every possibility you could get dissent. -- conversations we have had today's conversations, the bank of montréal would say carney has done a fairly good job. it might leave them a little bit of room.

what about the inflation data yesterday? we are dealing with a retrospective. my gosh, we are not sure whether wages will rise. underestimated the amount of slack in the economy. it is really, really difficult. declining, inflation is declining, wages are not rising. a lot of elements which are going to give the dogs the upper hand in the vote. >> they thought they could be the dissenters. 50-50. >> the timing of all of this is interesting because these minutes predate the inflation

number of last week. if we saw no dissenters in these minutes and then you add on the dovish nice of the inflation number we saw earlier this week, it suggests no one was going to turn more hawkish as a result of just the inflation data. just far out do we have to go to see in interest-rate hike? >> there is an article -- i referred to it yesterday. nobody wants to break out of the cycle. >> that is an interesting analogy. >> mark carney tried to step right. i think you try to test the

waters -- i think you try to test the waters and it was a pretty vicious response that he got. at the end of the day, it will come down to janet yellen. they had a reduced level of inflation coming through yesterday. nervousness.of and weguage of slack have moved to a wide range of views. carney said that when the time comes, when things are finally balanced, we are united on the gradual approach in terms of raising rates. mark would disagree with me on this. one should stop using expensive language guarding the market.

-- guarding the market. i think it is a pipe dream. >> none of this is ever a promise. dependent.ata it is not a promise. england minutes out soon. shares of the u.k. biggest builders are falling. u.k.comes ahead of the takeover panel deadline to put up or shut up by friday. here with morris caroline hyde. brilliant has been -- karelian has been knocked back. what is the latest? valuation,ion pound not good enough.

third time was not so lucky. the two helped build britain. you have the likes of balfour beatty helping to build the channel. history. together i'm a they would be the biggest builder in the u.k., but the merger is not going ahead largely because of the u.s. unit of balfour beatty. todoes not make sense for us dispose of them. they're very close to a deal to sell off their u.s. unit. it is an engineering consulting unit, 700 million pounds there close to gaining by selling this unit. 200 million of that would go to the shareholders.

worried about retrenching after the u.k., they seem to think by teaming up, they would be removing themselves out of u.k. construction at a time we are area. excitement in the why back down from it now? >> from builders to be her. o beer.be our international correspondent hans nichols joins us now from berlin. what does beer tell us? is a consumerere slowdown. you see this with carlsberg most

radically, a get a third of their profits from russia. they have issued a profit warning. they expect profits to come in less than expected. before they were talking about single too high digit growth. at heineken, it is a different story. heineken does not have as much exposure to russia. they have seen strong growth in western europe. when we spoke with the ceo, he said it was about gaining market share. >> world cup helps and good weather helps in europe. the most important is that we are winning market share everywhere in europe. rate has been booming at 7% of revenues. we are doing fine and strong. you onll interrogate market share.

do you drink carlsberg or heineken? ale am not and drinker. more of the grape variety for me . what kind of world cup do we see -- world cup affect the receipt? -- affect do we see? the world cup effect, maybe around 3% increase when you combine that with good weather. one other interesting factor, easter fell later in the year this year and because of that, you have a long holiday weekend for the weather was nicer, more people consume beer. household.ot in your >> thank you. we will be speaking to carlsberg ceo in his first interview of

the day coming up very soon on this program. let's head over to germany. that is for jonathan ferro joins us. you have a special guest for us after the break? >> i do. 19 nobel prize winners in tonomics and i get to speak a nobel prize winner who needs no introduction. we will talk about the situation in the eurozone. ♪

welcome back to "the pulse." former has resigned -- steve ballmer has resigned from microsoft's board. it marks the end of a career with the world's largest software maker that lasted more than three decades. he remains the top individual shareholder. apple stock closed at an all-time high in the u.s. trading on tuesday. shares rose to $100.53 as investors looked ahead to new products. analysts are forecasting record sales for the next batch of iphones. glencore has announced a share

buyback of up to a billion dollars over the next six months . the mining giant announced first-half adjusted half it that beat analysts estimates. for a bloomberg exclusive interview, jonathan ferro is in germany where he is mixing with the brightest minds in the world of economics. he joins us now with a guest. what is going on? >> thank you very much. i do not have to give this man intro. everybody knows who he is, it is joseph stiglitz. professor, thank you for joining us this morning. since 2012, we look at market spreads have collapsed. now you seem to have the eurozone in a race to recession. italy back to recession. france on the cusp.

do think we need a change of approach? >> i have thought that for several years. people said about a year and a half ago that it showed that the policies were working because europe was emerging from recession. thatsponse was, the fact the growth was so low had only changed the aspirations that the very low growth was proof that the policy was not working, that the high unemployment rate, 12% average, 25% unemployment rate in spain, 50% youth unemployment really was proof that the austerity policy was a dismal failure and should be recognized as such. >> what would you like to see happen now? eurozone.e in the

countries,ividual but the banking union. the pace is too slow. they are focusing on supervision,, and depositing --, depositing. mmon depositing procedures. the policies have led to divergence. you need some kind of fiscal union, some way of borrowing with the strength of europe as a whole of solidarity. if europe could borrow as a whole, it could borrow interest rates comparable -- >> that is a pipe dream. could you first see angela merkel and the germans thinking

that we could do something like that? debt? the political realities seem to be against it. at some point, reality strikes. -- >>the economic reality the economic rally pushes us over that hurdle. enormous price that europe is pain. -- is paying. trent,is 20% below that you are wasting trillions of dollars and the prospects going forward are bleaker. hopefully the reality of this policy will be realized and people will say let's try something else. all over the world have seen this set of policies has not worked in their other policies that have the hope of

working. >> what about the monetary policy side of things? do need a more aggressive ecb? everybody was saying, the ecb has got to do more. is that something we will see? >> a good chance, that some of the politics are against that. monetary policy cannot really be a substitute for these other policies. monetary policy helped in the united states, but the u.s. economy is still weak, stronger than europe, but no one would describe the u.s. as in a good position. i do not think -- the hope that qe,anged monetary policy, a would substitute for dealing with the fundamental problems posed by austerity.

that would be a mistake. >> let's talk about inequality. you were on a group of economic advisers for an independent scotland. you think independent scotland can tackle inequality better. why is that? >> i was advising them on the issue of if they become independent, what with the kinds of economic frames, policies that would make it work? underlying drive of this is that the approach to success of reducing inequality within scotland is a more socio-democratic approach which emphasizes university education for everybody, a more social

thatarity, programs continue to get access to health care for everybody. those policies are working. that is a very different view from the cameron conservative policies and england were they are raising tuition. they're moving in very different directions. >> doesn't independent scotland pay higher taxes? >> some of the funding comes from changing priorities. scotland be involved in the war in iraq? afghanistan? these take resources and the question is, this is the best use of resources? did the united states spending trillions of dollars six seed in securing peace in the least?

many americans think this was spent.was money not well i do not think they are wasting money on the scale the u.s. military does. in terms of priorities, priorities have to be established and there is a different sense of priorities. >> what is left from the currency question? the u.k. government making a lot of noise about scotland not having the pound. what is plan b? the question of what the position of u.k. today or england today is is a bargaining to change the politics of the electoral process.

once they get independence, if that happens, i think there will be a very different position. countries can work with many different monetary arrangements. the concern here is can they achieve a stable transition? i think that can be accomplished. >> do we need to reframe a the question? question fundamental the scotland would use their say. is when you are political entity

-- the reality is that the voices of the larger countries are heard much more strongly. final question. dozens of scotland issue speed to the wider question of the eurozone -- doesn't the scotland issue speak to the wider question of the eurozone? >> the question of whether a collectivity of countries can work together in a monetary zone, different from a union which has lots of regulatory things in common, but a monetary union has much higher demands. one of my colleagues at columbia

road a very influential paper -- wrote a very influential paper. .urope is not satisfied having formed a currency union, the question is, splitting apart will be costly. >> professor, we have to leave it there. q i very much for joining us this morning -- thank you very much for joining us this morning. ♪

>> the co across berg joins us -- the co of carlsberg joins us.

>> welcome back to "the pulse." we are just getting some breaking news coming through from the bank of england. interest-rate vote was 7-2. the bond purchase vote was 9-0. that would have been a surprise to many, even those who were expecting to see some dissent at the bank of england.

if we have a look at what is happening to the currency markets, we might see that being expressed. these minutes looking a bit more hawkish than people expected. since the minutes of this meeting were taken, we have had some dovish inflation data out of the u.k. coming in lower than expected. interesting to see how the pound -- let's talk to mark gilbert. 7-2, mark. that is quite a surprise. that was the one that everyone was expecting. is thishink it tells us is not so much about the economic backdrop. it is trying to have a two-way

market and interest rates expectations. you do not want consumers and businesses to stay at interest rates at record low forever. >> forward guidance was about giving people some certainty. >> the certainty that rates will rise after some point and if you think dr. the inflation report -- think back to the inflation report, does this policy mean if you will stay lower for longer, you might need to move sooner than the economic actor out tells you. he looked very shifty. those expectations that have been taken off the table for rate increase this year, he might start to see some of those come back on. >> what about the conversation around wages?

for some members of the mpc, that lack of -- it is not enough. views on theof mpc. they will want to see the combination of wages moving in the right direction and slow inflation. they said there will not be a target for wage increases that would be the threshold after which they would be willing to raise interest rates. i think they will have to move sooner than people expect. >> an interesting comment coming through on the subject. the bank minority saying an early rate rise would allow for gradual tightening. maybe that is the thinking amongst some. slack was becoming less useful as a policy guide.

we have seen this evolution of guidance had away from the bank of england -- evolution of guidance from the bank of england. boyfriendeliable seemed a little unfair. think back to the central bank. banks do not like leaving policies on hold for a long time because it introduces complacency. there is a willingness on the part of central banks to move quickly and you change those expectations. they want to get in early, this nonsense about some deal is nonsense. there is no quite agreement not to raise interest rates. resign mark carney would on the spot.

>> thank you for joining us. the latest on the bank of england. -- shares of callers work are under pressure -- called berg -- carlsberg are under pressure this morning. joining us from copenhagen is the carlsberg ceo. thank you very much for coming to talk to us. back in may, you had to bring down expectations of what you can achieve because of what is happening. you've got to that once again. end in terms of bringing down market expectations? so.e believe -- it is challenging,

uncertain. sanctions being put in place that recent events. it is still important to and bear in mind that our russian business has very strong performance. it still delivers very profitable results. western europe very strong, the same out in asia. >> you might be delivering a profit in russia, but you are losing market share. losingit because you are -- is a consumer preference that is hurting you in russia? >> i do not believe it is anything to do with our portfolio. we have the strongest for folio

in russia. our market share is performing a lot better than our market share in volume. we have chosen to avoid price increases on some of our products, we have chosen to take out liquid. >> what about the sanctions environment? are you having conversations with governments, with regulators about the sanctions? what kind of conversations are you having? you always have to have .onversations we do that in all of our markets. -- keepkeep doing not

doing that. what has an impact on our business is negative outlook for the russian economy and the russian consumer and we think they will purchase less in the second half than in the first half. it is much more about the consumer. that will have a negative impact on many categories. >> heavy change the way you are doing business -- have you changed the way you are doing business at all? are you adapting to this changing environment? >> yes, we are. we have been adapting for years. we keep doing it. you greato change how

the tensions we see over russia, does that speed up your diversification plan or does it hinder it? >> our acquisition strategy has not changed compared to what it was a year ago. we will look for attractive opportunities.

important to find out that russia is a very important beer market. we have a very strong business delivering very strong financial results. -- if it is all about profit growth and expansion, [inaudible] disappointingn growth figures for the eurozone. how are you competing in that kind of market? >> it has been a very good first half, very strong results. we are gaining market share in a number of the key markets. we have bet on volume .erformance

it is still a tough environment, -- our product .ortfolio, brand investment >> i am english so i've been trying to forget the world cup. spell out for us where you saw that affecting your business. >> it does affect the business because more people watching football and you get together with friends see go down to the local pub and watch some football. even if england or denmark is not playing, you still go out to

watch the games. in the markets where you have teams still playing, more positive impact. >> thank you very much for joining us. ceo of carlsberg. we will bring you and his collusive interview with heineken's chief advertising officer. ♪

>> welcome back. the sharpest minds in economics are gathering today in germany. jonathan ferro joins us with another guest. >> i bring you a very special guest. a different perspective on the unemployment situation in the united states. there seems to be an obsession with wage growth, or the lack of wage growth right now. maker,k at a decision

are people just more willing to accept the job in wagers are not an issue for them right now? start,less secure job the less people are prepared to press for high wages. there has been a wages spewed in wage tropolitan opera -- dispute in the metropolitan opera. >> are we expecting something of a turnaround? the federal reserve hoping to be -- they are pinning monetary policy on that hope. happening -- happy to have a job, the employee will not be pushing to have higher wages anyway. when unemployment is high,

the wage pressure is not there. i am not a macroeconomist, but there is no question that there are times -- even in the height of recession, there are skills in high demand. those command high wages. we've have been seeing stories about analysts of big data being in short supply. in thee does this fit whole inequality question? is there a concern that the people at the higher-end will actually push for higher wages? >> one of the interesting facts about wage inequality is that

people with higher educations tend to marry each other. those couples tend to be more prosperous than unemployed couples oral couples that work at low wage jobs. seeing a bigger dispersion of household incomes. over the long span of time, i am not sure what has happened. in the united states, the. after world war ii seems to be different than the present period. >> going forward, there seems to be an obsession over inequality right now. has this always been an issue? gateso not think -- bill

is a wealthy man. ds thatt think anyone mine if you write a book like harry potter, you will be a wealthy person. the kind people worry about is intergenerational. in the united states, one of the is whether universities continue to be of social mobility. >> thank you very much. some very special guests this morning. 19 nobel laureates here today in germany. i will throw back to you, anna. >> thank you very much. we are going to take a short ."eak here on "the pulse

♪

>> welcome back. how much would you fork out for the rolls-royce of cigars? how about $1000? you our favorite among celebrities. we will take you inside the factory to meet the man behind the world's most expensive cigars.

♪ >> we do not make millions of cigars. what we do make is the finest quality cigar out there. sedo.m the owner and ceo.am the owner and the box sells for $25,000 and there will be a small increase by next year. we hunt for the most exotic tobaccos around the world. in 1996, we got a hold of 18-year-old tobacco and we fermented it with cognac. it smooths out the cigar, but it

gives the aroma when you take it out of the glass. we started off with 75 boxes and now we're down to 20 boxes. we have a three year waiting list on a cigars. we have captains of the industry. people try to copy us a lot, but we have no competition. we tell everybody, please smoke a cigar -- a cuban cigar and then smoke hours. they realize what a difference in quality it is. a very unique smell and the unique flavor. if you have the pleasure of smoking one, you will understand the difference in the taste.

they're are working on something right now. they're working on the tobacco. we should have something close to once they finish. >> he looks like a man who enjoys his job. uber has hired a top local advisor to help cope with regulatory hurdles and growing opposition from cabbies around the world. he said downwind bloomberg -- he ober.own with blo with bloomberg. >> i am lucky enough to just partnered with the best campaign

manager in the world. bloombergibutor to television. the bank had promised to report transactions as part of a 2012 settlement with new york's top tanking regulator. riskank did not stop high transactions. a share has announced buyback of up to a billion dollars over the next six months. the mining giant announced third-quarter adjusted profits. for those listening on bloomberg radio, the first word is up next. for our viewers, the second hour of "the pulse." we will be talking beer -- carlsberg versus heineken?

we will speak to heineken in the second hour of the program. we will talk mergers and acquisitions in the engineering space, that is coming up. ♪

dissent.rst two members wanted a rate rise. trouble brewing for carlsberg. the earnings outlook is way down. fromken says with less russia, profitability could improve. down yet another sweetened bid from pavilion.

good morning to our viewers in europe. good evening to those in asia. welcome to those in the united states. this is "the pulse." live from london. the rolls-royce of cigars. a favorite of bill clinton and matthew mcconaughey. how much it will set you back. story.n with our top the bank of england says to policy makers want of a rate hike. this marks the first dissent under governor mark carney. we are joined by mark gilbert. it was something of a surprise. an members voting for increase in interest rates for the first time under mark carney. >> nothing wrong with dissent, absolutely nothing wrong with dissent. it is why they have a varied panel.

good.t is there should be a range of views about the economy. there is an art to monetary policy. this is an interesting development, a healthy development. then the statement, and minutes, rather, they are in wageabout lag increases. this seems to be preoccupying many economic minds in the u.k.. you get ahead of it with something else that might operate with a lag and that is increased interest rates. terrified bankers are . they are terrified about it

getting out of control. there has been no wage increase for several years. the europe -- europe and the u.s. are facing the same problem. goingssenters also said early lets us leave rates lower for longer. it is not really about wage growth. they are always concerned about wage growth, even when it is not happening. the argument of being ahead of the curve, you can see where that is from. about going early to stay late -- lower for longer. of 9 is not enough to change the interest rate. 2en do we start to see that turn into 5? look atyou interest-rate futures for

december, they have given back everything since mark carney gave his speech about underestimating one rates may go up. i think you will see more economists coming back into the cap. -- that camp. >> you think we could see some economists putting forward their expectations as a result of this of when rates might move? suspect that the bank is reaching to raise rates. it would be a shot across the bows of complacency. there is a concern about snuffing out growth. mortgage rates tend to pop rates -- orterest bank rates than he used to. -- it used to. >> interesting.

thank you very much gilbert joining us. -- thank you very much. mark gilbert joining us. a snub ahead of the u.k. takeover deadline to put up or shut up by friday. caroline hyde is with us with more. are they the same reasons before from balfour beatty? >> they are the same risks they are outlining us before. it sweetened deal of valuing at 2.1 billion pounds is still not enough to overcome it. if they team up with karelian -- ion, it would make the biggest builder in the u.k.

that is a key risk. parsons brinkerhoff also keeps haunting carillion. .hey are close to selling it that would go to the investor base as cash returned to shareholders. they want to get rid of this asset that has been burning a hole in their pocket. there is no logic to keeping it. illion says that as part of the deal. if they were to bring these two together, who helped rebuild the façade of the buckingham palace, if you bring them together, they still want to have a skin in the game in the united states. that seems to be what is breaking this deal apart. theseferent views about

two players in this story about the future in the u.s. and the future in the u.k. if there were to be a future for the saga, where would it go to? >> that is what we will delve in on. that is probably why the share prices have taken a bit of a whacked today. -- whack today. many are interpreting this as the end to the process. now we have to analyze golfer beatty on alfour standalone basis. it does not have a chief executive. it has not had one since the last one stood down. profits are tumbling, they keep on tumbling. profits are down by 50%, more than 50%. illion is seeing profit

take up. -- tick up. has reallytty struggled on its own. that is part of the irony. they have not made the most of the uptick in construction. managing wel been l. , they haveloundered had problems in australia. they have had a management reshuffle. they have had serious project issues back at home. this company has to wonder where its future lies. carillion has made it much transition into the services area and maintaining buildings rather than just building them. 5:00 p.m. is the deadline and i'm not sure they will get there in time. >> now i will attempt an awkward segue.

numbers poured out today from the russian beer market. they are helping to provide a reading on the geopolitical turmoil. hans nichols joins us now from berlin. wood to the beer numbers tell us about the global economy -- what do the beer numbers tell us about the global economy? two sides of the same story. the sanctions are affecting the economy. the economy sees a weaker ruble and that affects a lot of companies. the carlsberg stock was down almost 7% earlier today. profits are down. they have issued what amounts to a profit warning. they were talking about single-digit profit growth for the year. now they are talking about low single-digit profit growth for the year.

clearly they are affected. companies that have exposure to the russian market, whether sanctions or the economy, are going to feel an impact. if you have strong growth elsewhere, outside of russia, you may be ok. take a look at what heineken has done. they have had strong sales in africa and western europe and their stock is clearly trading up this morning, even though their sales are basically flat. they over performed in terms of profit across every division. here is what the ceo had to say. obviously, world cup helps and good weather helps. the most important is that we are winning market share in every single country in europe. we are gaining share in most of the countries around the world. our innovation rate has been booming.

we are doing fine and strong >>. >. >> 1.4 5 billion euros. the estimate was for 1.32 billion euros. >> let's talk about the world cup. you might have thought that the dutch tea making it through would have felt heineken -- team making it through would have helped heineken. >> there is a little bit of correlation with the world cup. there is also the weather. they also mentioned that easter came later this year. there was a long holiday weekend. people drink more beer over a long weekend. i know you are a wine h ousehold. you don't have to tell me what you serve with your easter ham. >> you have a worrying level of

interest in my own drinking habits. we will have to meet up for a beer. >> someone needs to show concern. [laughter] >> thank you very much. reporting from the beer industry. i don't think he has been drinking this morning, but i can guarantee. -- can't guarantee. profit gains, we will break those numbers down next after a short break. ♪

>> welcome back to the program. let's check in on the currency markets. the euro has lost considerable d focalsince we hear complaints from european businesses around numbers pushing up. nine-month high against the euro for the dollar. goldman sachs is seeing more dollar gains as they see money flowing out of the euro. attention will switch later on today to the federal reserve. we will get the minutes later on. the focus will be on jackson hole over the next two days. will be all things central

banking, including normalization of policy, no doubt. gainede says nonprofits 8%. .he mining giant were you impressed by what you heard from glencore today? there seems to be something bigger on the buyback front. >> i have been digging through these all morning. i thought the buyback was pretty good. considering the disappointment of bhp yesterday, where there was no buyback and no benefit either, particularly in the u.k. glencore stood out well there. they had an acquisition that goes through. that is very good news. lots more cash. $6.5 billion of cash in the bank from that. >> they say that the balance

sheet is robust and improving. >> it looks really good. the market activity is very well. the agricultural side, which went from virtually nothing to a very good contribution. the trading side of glencore is performing just over half of what the mining site is doing. -- side is doing. is doing muche better than i anticipated. there is still scope for improvement. there was much more to come from this group, looking at the portfolio. >> looking at the trading side, you thought it could be a wild card going into the numbers. what have you been impressed by? the ceo saying the trading businesses giving great returns. >> very solid. we were worried.

volumes have been very good. we have seen that with iron, oil, and coal. volumes are amazing. it is a really interesting market. they have not been caught out by anything nasty. commodities are moving. i think they're still building. the consolidation seems to have worked well. what is impressive is when you look at the metals trading side of thing, it is contributing almost half of what the mining site is doing. it is good numbers coming through there. a little bit less on the energy side with oil prices coming back. brilliant on agricultural commodities, grain trading, very good numbers. >> what do you make of the commodities super side? believe that it is still

in place? china is still their underpinning the super cycle? it shows how much global trade has expanded in metals and mining. ishink the key take away that china has been absorbed into the global economy. there is another superpower in the economy, and the world. did note world, that we have 15-20 years ago. and it is still growing. the super cycle is still very much with us, as far as i can see. yes, there will be ups and downs. the rate of growth is falling. we can very clearly see that. >> the demand super cycle away from the supply super cycle. they are two separate things. the miners are trying to be more disciplined in the last few years. haven't they? s are still going

for it and things like old. -- in things like coal. they are still making more and more money out of these businesses. if you look at the less popular models, zinc, nickel, the production of those is likely to fall. that means that prices are sure to go up. the key point is that china is closing dangerous and uneconomic mines. those sorts of things. that is good. the whole price process could accelerate. >> thank you very much for joining us. we will take a short break on "the pulse." we will see you in a couple of minutes. ♪

>> welcome back to "the pulse." live on bloomberg television and streaming on the ipad and bloomberg.com. it has become a staple for the young and trendy. craft. beer could leave room reason i eries high brew and dry. arehe precious hop plants weeks from harvest. arehis is what the brewers

after. pollen.the yellow that is what the brewers need to create the flavors. >> they have been growing hops their whole lives. they have 100 acres dedicated to the delicate flower. brew 46 million pints of beer. hops are in high demand. six times more hops than standard beer. the craft beer industry was born in the u.s. hops prices have doubled their in the past decade. there is even talk of an imminent shortage of the flower. >> the hops we are stirring in

now are for the aroma. >> he quit his job for high-quality craft beer. now one of 60 within london./ >> he mostly uses american hops. up 35% of the global market. 1.5%.k. only produces brewers will have to start looking elsewhere if there is a shortage in the u.s. >> you may find it very difficult to get hold of some of the more profitable hops. >> what we need to encourage them to do is try the full range of variety that are available. different breed

of hops going into your brew. on beer, earlier we spoke to the ceo of heineken about the impact of russian sanctions. >> the impact has been minute so far. not have a crystal ball to see what for and impact -- four reign impact will have on the region. i think it will have some impact over time. i think it will impact a lot of sectors, not particularly just us. >> after the break, we will bring you an exclusive interview with the chief marketing officer at heineken. you can follow me on twitter. ♪

welcome back to "the pulse." live from london. i'm anna edwards. the bank of england has released the minutes from us last -- from meeting monetary policy and it shows 2 dissenting members. they wanted a basis point rise from the current low of 0.5%.

a surge in energy stocks led to an increase in norway's wealth un airlines are on alert. a volcano shows signs of eruptions. carriers are concerned. an eruption in 2010 created a nash cloud -- an ash cloud that cost billions of dollars in lost revenue. let's check in on the markets. manis granny has more. >> an -- manus cranny has more. >> anna, the magic is gone. equity markets are giving back recent gains. when it comes to that little bit ,f emerald, it is beer

carlsberg is doing quite nicely. that is helping with the overall trend. equity markets are coming off the board. look, a drop of a further 1%. british american tobacco. mail is on the upside. is good. it always makes for a much more interesting dinner party. and nice little reaction. -- a nice little reaction. you get provoked. the voices of dissent. economic circumstances justify immediate moves. that would allow the mpc to move into a gradual momentum in terms of what they do with rates, they say. that is the theoretical argument. the two dissenters.

will he get another one to join them? with that in mind, the overarching backdrop is one of dollar strength. portrays itself most candidly in the euro-dollar. a nine-month low for the euro, a nine-month high for the dollar. it is about dollar strength. i mentioned beer. two very different stories at play. you touched on them, anna. i spoke to the heineken ceo this morning. darn tough.retty heineken is being awarded for emerging markets. back to you. >> it is time for a bloomberg exclusive. investors are raising. the third-biggest brewer expects growth.

that is after it posted profit in the first half. joining us now from amsterdam is alexis nasard, heineken's president of western europe and the chief marketing officer. thank you for coming to talk to us. can i ask about this call for growth to moderate? you have western europe under your belt. do you expect to see moderation in western europe or elsewhere? >> our growth in the first half of the year is from to phenomenon -- two phenomenons. we had good weather and the world cup. underlying that, we had a structure and competitive position in western europe. e --ave our own market shar we have grown market share in almost every market. that journey is not only related to our results, but also in the

second half of 2013. we grew 70% of the business in western europe. one is circumstantial because of the external environment, but we are also much more competitive. you about that structural improvement? what do you put that down to? why are you managing to take the market with the heineken brand? all of ourmost priority brands have grown share thealf of this year and second half of 2013. we are investing ahead of the curve. we're are investing a lot more right now in our business, in our innovation.

quantitatively and qualitatively. we are innovating a lot more than we have ever innovated. our innovation rate is three times the level that is was years ago. we are working in on and off trade channels. that is crucial. have a lot ofu structural dynamics in the region which are not positive, as you know, growing population, less alcohol drinking, a lot of that moderation in the development of the beer category was also self-inflicted. collectively, we did not innovate a lot. for the category to be competitive, we need to innovate and that is crucial going forward. much can innovation take from drinkingaway

some of the more standard beers and awat from beer entirely -- away from beer entirely? >> quite a lot. aen though europe bashing was sport for quite a few years, we are living in an economic powerhouse. .e are 30% of the world gdp you have educated consumers who are very interested in innovation. at the worst of the economic crisis, you had people queuing up and standing in line all my to buy the next iphone. you have an educated, affluent consumer who is excited about innovation. innovation can take us quite far as a player, as a company, and as a category. i saw an interesting study recently in the american association of wine economists.

they said consumers struggle to tell the difference between various european pale loggers. -- lagers. is that just sour grapes from the wine industry? or is there something in that? has the beer industry done enough to distinguish its products, one from the other? >> yes, i think we have and we should do a lot more. it remains wine, to a great extent and agricultural product. beer is branded. the power of brand is nice. what we can do in terms of brand management to stimulate interest to differentiate brands. it is unlimited. you areat end, increasing spending in the u.k., in terms of cider production. what are the innovations you are mostly talking about? have a lot of innovations

happening in the company. the most visible are the ones related to the global brands, like heineken, like desperado. we innovate a lot on our global brands. if we take the u.k., some of our healthiest and fastest-growing lude the brands growing strongly in the u.k. marketing, good execution, a powerful innovation program. consumers are loving it. that point, it corroborates what i said earlier, in terms of how innovation can stimulate the category. cider benefits from the macro economic environment. it innovates very vigorously. that is one point that is heartening to us. >> thank you for joining us.

no doubt we have made everybody very thirsty this morning. [laughter] coming up on the program, balfour bearttty says no once again. ♪

>> welcome back to "the pulse." live on bloomberg television. balfour beatty has rejected

carillion's bid. , thanks for coming in, anthony. you think that balfour beatty should say yes. why? >> in the absence of any counteroffers, this is an elegant solution for the shareholders of balfour beatty. they have some great assets. it has a great portfolio. where it has taken a wrong turn strategically is in the construction business. that is a business that carillion has played very well against the credit crunch. this could enhance it for both parties. >> you know a great deal about the inner workings of this particular merger proposal because part of the conversation seems to be linked to the media all the time. why do you think balfour beatty has been saying that the carillion management are not up

to this? think it is unfortunate for both parties in some senses. has got a good track record of integrating acquisitions. maybe we are seeing stuff we would not normally see in the public arena. that carillion has delivered profits. balfour beatty led to profit warnings. does not havetty a chief executive. >> i'm surprised they are making such a big strategic decision without a chief executive in place. if the proposed merger does not i would take stock, stand back, appointed chief

executive without history or baggage, with a clear mind, and let him take you to water rising. concerned beatty is that the american sale should go through and that if they sell themselves to carillion they will be reducing themselves in the u.k. brinkerhoff,rsons i would not sell. of theirut half profit. if you take that away, then there is a big gap in earnings, which leaves a big gap to fill in dividends for shareholders. >> balfour beatty wanted to sell it to get cash in the short term. >> they are saying they would return up to 200 million pounds to shareholders.

you could argue there was an element of indifference. the issue is that balfour beatty wants to grow the u.k. construction business. , a recovering u.k. construction business will consume cash. if you get rid of a unit that generates an awful lot of cash, there is risk about how to find expansion. it is a useful source of cash to help expansion. offer ision says its improved. balfour beatty says it does not add up. >> we're are dealing with grown-ups on both sides here. i'm sure they have both done their due diligence. tois in no one's interest make up goals they cannot achieve. suggested.y has it should be good for both sets. >> are the culturally very

different, these two businesses? are they culturally on the same path or on different trajectories? >> they do differentiate themselves. at the end of the day, they are involved in trying to build construction management environments, growth in schools, hospitals, tunnels, bridges. in terms of the work people are trying to do, the project managers want to improve the infrastructure of the u.k. i think you do that whether you are wearing a carillion or balfour beatty at. -- hat. >> will we see another bit from carillion or will carillion a try to approach holders directly to make a move? >> that is the question. i'm sure they will be very busy today. hopefully, they will be talking to each other. i still firmly believe it would make sense, in the absence of

any other bid, for this to go-ahead. >> is anyone else likely to make a bed? -- a bid? >> any other bidders have had plenty of time to show faces and we have not seen them yet. >> thank you so much for joining us. othermove on to some company news. standard charter agreed to pay $300 million for savings -- to pay for suspicious transactions. according to a statement from the u.s. regulators, the bank potentially high-risk transactions because of faulty anti-money-laundering controls. glencore has announced a share buyback of up to $1 billion over the next six months. they also announced it adjusted profits that beat analyst estimates. and improving the

performance of players as part of a three-year deal. it is a matchup of germany's biggest technology company and the team. software to help players will be a particular focus. we will take a short break here on "the pulse. " after that, all eyes will be on the fed. will the minutes be a clue on interest rates? we will discuss that. ♪

>> welcome back to "the pulse." live on bloomberg television. streaming on the ipad and bloomberg.com. let's get a check on the currency markets. here is the euro-dollar where we are trading today. far away from the conversations we were having earlier on this year. the dollar against the euro, around a nine-month high right now. ae dollar index is around six-month high. goldman sachs saying today that they expect further dollar gains as money moves away from europe in their view. attention is now focused on the fed minutes. we get those later on today. get kind of growth will we in those minutes and what kind of focus will we get on week wages, weak inflation?

the dollar index. jackson hole will come into view in the next two days. central bankers are gathering in wyoming to discuss. macroeconomics. let's get more now in germany, where jonathan ferro is standing by. you have been taking us through a number of academics and economists, taking the soundings. minutesocused on the from the federal reserve. we will see would emphasis they put on growth against the emphasis they put back on week wages and we can inflation. weakak wages and inflation. >> they will be discussing the big picture items. after a couple of years, the bank of england, you start to see some real differences emerge , develop, and gain traction. evidence of real dissent. we know about the dissent at the

federal reserve. the philadelphia fed president dissenting last week. when the minutes come out this evening, that is what everybody will be looking for. a little bit more color on a particular dissent. the dallas fed president talking a lot about how the committee is coming around to his way of thinking. what does he mean by that? look for any color there. mark carney has been described as an unreliable boyfriend. janet yellen is a reliable girlfriend. she speaks on friday. she will be speaking about reevaluating labor dynamics. it will be interesting to see what is the role of the federal reserve. does she think the issues in the labor market are still different and does she think there is still more work to do? the other kind of debate that is and we will have to see a jackson hole later this week. be something of an

academic exercise. almost closed and central bankers get together to talk amongst themselves about the best policy options. now it is a place to play for central-bank leaders, to break ground, to take to the stage, to talk to a broader audience, isn't it? >> to pick up the event itself, the reason it went to jackson flyfishing, it developed into much, much bigger things. it is a who's who of central banking. the could be a big policy bombshell or give you a hint of what is coming out of the federal reserve. this time around, we get an insight into the thinking this time around. it is all about the labor market. it is all about reevaluating the labor market dynamics. will get insight into where janet yellen stance. the fed has got to roll. talking people are about structural issues.

if that is the case, then the fed really did not have a say there. >> a lot of the conversation around loose monetary policy and the effects that is having on inequality. it has been a factor in some of the conversations you have been having on your macro economic tour. had a great time. what a really can't ignore is that i spoke yesterday. forget monetary policy. fiscal policy issues. talking about reform fatigue. the austerity measures here in europe have failed dismally. the situation in scotland speaks to something wider here in europe. he said he did not think scotland have a say in monetary policy right now. the other thing you have to think about is italy, france, germany. germany is still driving things. >> monetary policy is no substitute for other fiscal policy seems to be one of the

message. jonathan ferro, thank you. this is it for "the pulse." keep it right here on bloomberg television. "bloomberg surveillance" is up next. tom keene and the team are standing by to take over. follow me on twitter. ♪

>> this is "bloomberg surveillance." >> kurdish ministers join a new iraq government. in gaza, the cease-fire fails.

60 targets are struck in gaza. be of good cheer. bill gross on a pessimistic and neutral america. confronts cities. they hire the president campaigner in chief. good morning, everyone. this is "bloomberg surveillance." we are live from new york. i'm tom keene. joining me, scarlet fu and adam johnson. the markets are on the move. the dollar is headed to new strengths. >> the dollar has been getting a bump. >> very good numbers. >> strong numbers out of japan. exports rose. that is good for the global economy. the whole economy is about exports. in england, the bank of england officials are split on the interest rate increases. i would also argue that is