>> the border. nato reinforces to determine russian of aggression. tosident obama heading deliver a direct warning to vladimir putin. apple security. the tech giant in the fbi fs again that hacking up between -- the tech giant and the fbi are investigating the hacking that led to nudes. seo ofation advisor and the airport.

>> good morning and welcome, you are watching "the pulse.". i am guy johnson. a number of bloomberg exclusive's. much,st of the warm and much more. the shackle is a big story. much, cost of the war and much more. is a big story. not exactly sellable but it could be very effective. we will began with our top story. will reinforce the borders in an effort to deter russian of aggression. president obama heads to estonia to meet with regional leaders. the latest, what can we expect? our international correspondent hans nichols is following the

story. what did we know? a rapid, you have reaction, 4000 strong that could be deployed anywhere within nato . the 28 member countries in 48 hours. that's special forces. that was floated yesterday and the expected to be ratified at the nato summit in waleswhich stash -- in which starts tomorrow. it is increasingly more hostile ukrainian troops are facing setbacks. in the southeast part of the country and it is clear the ukrainian defense minister wants to prepare the country for war and poroshenko. they are looking at the need to call and more forces and they said what russia is doing is clearly war. it is a land war the likes of which europe has not since and world war ii.

ukraine wants more help from nato and the u.s., we will see if they get a when president obama arrives. >> a lot of questions. finding its vocation once again. -- what obviously message will he deliver when he touches down in the balkans? message is he is landing air force one there. a deal ofhouse, deliberation on each report like this. just the pageantry. there may be strong language. we do not have a copy of the speech yet. the white house, they are not going to back down and they are going to use a trip to put president obama close to russia's a border and to say this is nato territory and needs to be defended and here are the steps we will be taken. aggression will not be tolerant of this nato allies and that

article five. ukraine is trying to make changes so they may be able to membership.or nato it is a long process. it could be discussed as a nato summit. ukraine is out of nato. by obama is told strengthening beto is not doing much for the situation on the ground. -- strengthening nato is not doing much for the situation on the ground. >> fascinating. hans nichols. thank you very much. theill continue conversation a little later. is going a -- the ceo to be joining us. ryan chilcote sitting down with him to get his take on what's the economic story looks like right now. in the meantime, let me take you to the cloud hacking scandal. apple and as the fbi are investigating the nude photos of

jennifer lawrence and some of the biggest names. they got a leaked and posted online. it is days -- it is a little embarrassing for apple's scheduled product announcement. break it all together for set caroline hyde has been watching the store. what do we know? little. they are actively investigating. the fbi has come out with a statement. they very rarely do that but they said so much was the public curiosity that they set the interest was so high that they felt it was appropriate to offer a limited statement. they are going into the investigation clearly, it was linked on sunday which was the icloud, the opera product is where the hack happened for some fishing the apple product is where the hack happened. pple product is where

the hack happened was that it is only female celebrities. \ in image sharing website. they said of the hackers got it from the icloud. jennifer lawrence came out and said the aldridge were hers. she cut the situation a flagrant violation of privacy. andkardashian and rihanna cure skin dunce and it goes on. dunst and it goes on. the photos were deleted. it shows that the length these hackers have gone to. the question is, how on earth did they manage? one person said it was a bug within the software. many habits on in k's the phone might get stolen or lost. haven't in k's the phone might get a lost or stolen. many have it in case the

phone might get lost or stolen. >> the icloud, product is critical for apple. the cloud is critical for them as well. ies sitting two stor side-by-side. >> how to link your iphone to your ipad to your mac? remotelyccess any data from whichever particular hardware you pick up. it is a key selling point. many of the other providers have something similar. google, you can do that. docs.eir google it is a way many of the juggernauts are making life easier. once again it puts into spotlight the fear people have about the cloud and how safe it is. explained byyths

the big tech companies try to ease our concerns it is better to have your documents in the gmailas we can access our and hotmail accounts rather than how documents or photos or some of our key materials saved on particular device. it could get corrupted or break down. they said it is better to use the cloud. apple.es a light on it does not want any negative press. to be on the iphone 6 developed. the biggest screen. we are expecting a wearable device. not the kind of hype you want. >> the backup system works. if you have been to leave it. i like to point it out. recoveringl facet from that. caroline, thank you. caroline hyde. we'll have more. the co -- ceo of a company will be joining us for a take on what we should take away it from this

story. in the meantime, let's talk about what is happening in london. closeyor has plans to heathrow airport. dismissed.ng our aviation reporter joins us now. so, what happened was the davis commission has come out and said this is not a flyer. it is not going to work. not going to be an economic reality. >> and they came out with the decisive decision paper on this independentifferent reports. countless comments. they went through all of the different issues that could be -- could arise. they talk to the environmental point. you have to crate impact -- create impact for birds. there's a facility on this location and questions of how that would work with the airport.

the distant that heathrow travelers would have to go. an additional 19 minutes on average. all of these points. on top of that, having to data.er all of the the aviation facilities and the people who live and work around heathrow to the other side of the city. the did say, they did make point it was a grand idea and the idea was a super hub to challenge asia and dubai. they and that london does not really need that. it is better to have a incremental moving forward and a super hop is maybe not the right answer. >> the response is quite interesting as well. they talk about a bit myopic. -- byoint to the fact ruling out of this super hub beenthe old debate what having. >> not too surprising.

you would expect them to be better. having said that, he has backed a hub. he would have the opportunity to back heathrow, by saying this whole thing is irrelevant. davis has made himself irrelevant. it makes you wonder, are we going to go back to square one or will there be another decade of debate? there's going to be a lot of political debate. the government so far has been very quiet and they have said we welcome his report and we look forward to the final statement which will come out to the elections next year. if anybody gets david cameron today and put him on the spot on the subject. >> a lot of voices will be churning on this one. later this hour, we will be with the ceo to talk about london's next runway and the key aviation advisor. all of that is coming up on "the pulse," and we are back in a couple of minutes. ♪

>> a back to our big a focus. nato said it will reinforce of the borders. aggression.sian let's talk about that. of a capital company joins us. which is the most important event? and what ise five,

happening with the ecb? things are all very important. the biggest event is russia and ukraine and the nato summit. and it seems to me that the escalation, it is a fact of life now. it is hard to see how either side can find a face-saving way to de-escalate. and we are on a certain trajectory. clear isncreasingly the russian national interest in whatever they want to achieve is very specific. in the sense they want more control unless u.s. influence. u.s. interest is much more general. the sense of what the u.s. is trying to achieve is a kind of return to rules-based architecture of the international system and kind of geopolitical -- geopolitical stability.

the things are very important but in the russian k's a because it is very specific, the willingness to pay a high price. more pain is often the one that ends up with the out, they he or she would prefer. does that mean we are in a situation where ukraine becomes a federal state or a pseudo-buffer state between ukraine and russia? if that is the outcome, from a political standpoint, let's get there. >> i think you are right. the federal states, the decentralization, whatever we want to call it effectively what it translates into is we reckon and effectively veto power from russia through the russian speaking regions. southeastern ukraine of what ever it is that western ukraine, kiev might want to do in

integrating with the west in terms of nato. >> partial hedge michael -- hegemonical. a small operator in between the tule powers. two -- two powers. >> it may be seen by many as a place to start rejigging. >> as we head into the windsor, we seem to be on aggressive side that is more in open conflict. running western business during this period will beach rookie especially the gas market. maybe overplayed the gas story. his economic interests and we talk about he has the most interest to turn the gas off

which is a big step in russia relies on the gas. if you are watching this very cautiously, should you be as nervous as the political headlines suggest? >> i think that is the critical question. the way i would frame this is this a regional or bilateral problem of russia and ukraine wider problem, global problem certainly european problem? it has the capacity to be very destructive for western europe and the world as a whole. i tended to agree with that piece of rhetoric with some interest. it would be irrational for russia to turn off the supply of gas. they never did a in of the cold war in the worst moments. we are nowhere close to a cold war yet. more of a hot war. what russia is engaged in doing is diversifying the

sources of demand for its commodities and energy in particular with the out reach to china after years and years of negotiating. it brings to a lower price and shows that russia is on the back foot. diversify where it can sell is energy. >> we have to leave it there. nice to see you. arnab das. let's turn to one of our big stories of the morning. airport on an island, it is getting dumped this morning. heathrow and gatwick. for the nextace runway. perspective from gatwick. stewart wingate joins us. good morning to you. >> good morning. >> of boris said in this morning and it makes davies irrelevant.

we are back to where we were when we started the whole process. is it a reasonable line? seek we are in an important junction in this debate. this morning ruled out the exterior option and it has come down to a two horse race. will he be gatwick or heathrow? within we are the only deliverable solution. by expanding gatwick, we would free up some capacity at heathrow by taking the pressure off heathrow while enabling .atwick to grow passengers enjoying affordable flights, not only across europe but whole destinations. we would have two world-class airports. >> you make a somewhat a very rational argument, which i am sure at some level it is. the point of is making is we are back to this little choice. i wondering if it concerns you?

i see the deliverability is really the key issue at hand. i think the man has consistently looked across the heathrow issue and said it is politically toxic and undeliverable. that is where gatwick can enter into the fray. we have the answers to many questions. we are deliverable. the environmental impact of gatwick is a tiny fraction of the expansion of heathrow. can serve the future needs of aviation. we can get in the long called us in nations with the dreamliner's and affordable flights with low-cost carriers. >> if i can ask you one final itstion on this subject, if is credible after what happened today? >> absolutely credible. the commissioners spent months studying this in detail. it is no surprise that the

options has fallen away. and there are some really been issues with moving ahead on such a skillful set you have to look at and say gatwick is at the center of the debate. >> british business does not seem to agree with you based on what we heard from the cbi. heathrow.s backing >> what the cbi said was we need spare capacity at our airports. of course, by expanding gatwick we would relieve the pressure on heathrow. that in itself would provide the spare capacity to enable us to grow and have a successful heathrow and at the same time, having gatwick to be a similar size as heathrow. it is certainly serving europe at a low cost. new generation of aircraft. the jury minors which have less -- the dreamliner's which have

less these but can carry the long-haul. gatwick will play a big role of getting to emerging economies and that is what the business community wants and cbi. -- all of your arguments on the board. completeate not a backing but fairly clearly vote of confidence that we need a hub airport to stop both boris and business is backing a hub. cbit is clear from the report that they said would be to spare capacity in heathrow. the most cost affordable way is expanding gatwick. what itl give this is requires is spare capacity at heathrow and the opportunity to get more connectivity for passengers traveling to and from london. gatwick that -- and that is why gatwick is as at the center of the debate. >> why are we messing around

toed ball one a new runway? why are we messing around talking about one new runway? a runway at heathrow and a runway at gatwick. the debate has been framed. thomas said it was to find out where the next additional runway can be built. some 70 years since we last built a full-sized runway in the south of the country. from environmental perspective, with a current technologies, we can only afford one additional runway. when you look at the passenger ,emand, if you want affordable there's sufficient demand for one runway. it would see us at least through 2050. >> you are saying it is one or the other? talking to business leaders and they can see the argument that you cannot see an argument for two fresh one way's -- runway's?

>> the commission's focus on identifying where the next runway should be built. and the gatwick case, we can build it and faster and cheaper and environmental cases stacked up and we can free up capacity at heathrow. we could have two successful airports was the >> that is not at the question i asked. can you see the argument? can gatwick see the argument? when you look at the numbers, can you see an argument for evil more capacity than a one runway would provide? been consistent from the very start of this process. it is very appeared and clear to us that commercially there is sufficient demand to support the building of one at the time. around 2040-2050 will be the next time for a further runway

to be built. cbi's wouldhat the like to see shovels on the ground. >> we are the fastest option. we are ready in 2020 as long as the government supports the proposal and have it open in 2025. we are the only deliverable options the >> stewart -- deliverable option. stewartore -- a wingate. we will get the take on it today's news when we come back. -- andll be talking to we will be talking to a ceo. we'll talk precious metals when "the pulse" continues. you can follow me on twitter.

plenty of things to discuss from a boris islands to what is happening in ukraine. we will have it all right here. ♪

>> good morning. welcome back. you are watching "the pulse." i am guy johnson. he u.k. prime minister said will force airlines to share their flight to list with security services and the appalling the power to confiscate passports in and the he said he is looking at how to restrict suspected terrorists in a britain. we are putting

our arrangements of security on a statutory footing. airlines will have to comply with our no-fly list arrangements and give information on passenger lists. theiry do not do this, flights will not be able to land in britain. lost steam in the second quarter. gdp was unchanged in the three months from june. 0.5 percent growth. that's the weakest quarterly and shows two years private consumption was unable to make up for slowing exports. aree and the fbi investigating reports that hackers use the icloud service to illegally access nude photos of actresses including jennifer lawrence. it is days before apple's next product announcement. it is a key part of apple's

strategy to unite products using the cloud. ok, a bloomberg exclusive. a gold has dropped to a one-week low. tensions between ukraine and russia. where do we go from here? joining us is ryan chilcote with visio of -- with the ceo of the russian gold producer. out andprofits came while aback, j surprised him more than a couple of people because profits rose just as in the sanctions were starting to in thed in the crisis ukraine was really taking off. we are joined by the ceo, naftali bennett. -- howyou reconcile that do you reconcile that? sanctions began to get imposed on russia and your company, profits are rising. >> the sanctions on the usual

business has been negligible. and the rublerol valuation, those were the key drivers of our performers. so faras been traumatic this year. the ruble is down more than 10%. interest rates have been rising. how do those a balance out. quite moderate and so for foreign metal the positive impact, the valuation upsets the interest in rates. >> if we were having a conversation a year or two ago, europe as a gold producer, i might have said it you are a beneficiary of the crisis in ukraine because gold traditionally have gone up with crises. this time around, we are not really seeing that as a much. old has been volatile.

-- a gold has been volatile. why the disconnect? is what to drive really -- one normally drives truly kickeds not in so far this year. that is probably because most view the still geopolitical situation as being relatively mild compared to the previous geopolitical fights. >> a lot of talk about the central-bank possibly raising rates to stem the ruble's decline. what do you think? >> i am not the financier myself. the benchmark reading as significantly to the left, better than western economies. whatever the central bank that does, i do not think it will have an appreciable impact on the operations of the company or

the direction in russia. think of theo you sanctions have caused your share prices? >> is a very easy question to answer. the ftse index rose by approximately 10% from the beginning of this year and our share price is down approximately 25%. our operating and financial performance has been very good compare to our peers. that is approximately a discount that i personally view as directly linked to the geopolitical situation. >> does it create opportunities for you, for example, would you do a buyback share with your share price alone? projectve for not had a which is costing us a lot to buy and will cost much more to

build. isy key objective right now to retain financial flexibility and be prepared to continue the construction of the project even as gold prices decline. we are not in a position to spend money on a buyback. >> at of talk of consolidation. industryeard in steel and gold industry. we know people in your company was talking about a possible merger. do you see with share prices depressed, any opportunity for the talks to be written in? -- renewed? >> i do nothing financial considerations should play a meaningful role. i do not see any potential of consolidation which would bring synergy to our company. as a result, consolidation is not something i view as attractive at this junction.

>> we have seen a lot of russian companies are moving to shelter their businesses, protect their businesses from sanction a fallout. a lot of copies talk about moving their money into hong kong dollars. is that something you are doing or looking at doing? >> within the framework, i do not think that such actions make any sense. butrly, the interest rates we do not truly deal with companies. we have seen no restrictions on the financial transactions and so far. nothing we would do like you have mentioned. >> when a comment to the sanctions, what keeps you up at night? a suggestion by mr. cameron of excluding the russian from the swiss system. that raised some eyebrows.

other than that, -- >> why would that be a problem? >> it wouldn't -- it would increase all cost in transactions. to westerney counterparts would have to be rerouted through third countries, most likely china which will slow down the flow of money and add to transaction costs. >> do you think the sanctions are working? the idea is to influence the oligarchs to influence president putin to get a the oligarchs, the people in charge of russian companies, to say to president putin, you should pull back your troops from ukraine because it is hurting business. your brother is a billionaire. co-owner of the company. can he call a president putin russian hey -- do

billionaires have that influence on the president? to have at qualified meaningful opinion on it that matter. for me, it is not clear the purpose of the sanctions lies in what you have described. think it is just to impose a cost on russia. certain political behaviors linked to certain costs. >> the assumptions are imposing costs? >> certainly. >> they will change in the president's behavior? >> that is not for me to judge. >> what do you think is happening in general in russia? seems we haven't talking about four years. investor climate, modernizing the economy, things that are not being talked about. -- these are things we have been

talking about for years. >> the economy has been slowing down before the crisis in ukraine. >> that is true. >> russia was not the market's darling. clearly the sanctions put additional pressure on the theomy, but i also see signs that the sanctions are helping russia corporate and state owned entities to wake up to the realities of the competition and become more efficient. is a double-edged sword. on the one hand, the economy is suffering and the people and companies are looking to improve and live under a new regime. >> you went to yale and worked at merrill lynch in new york. it has to be difficult for you? clearly, a very unpleasant

situation. i am the ceo of the u.k. public company. certainlyck price has bore the brunt. the difference is between the west and russia and it will be resolved amicably and the near future. foritaly nesis, thank you joining us. he said the sanctions he things have cost of the company's 30%-40% of the market cap. >> thank you very much. a fascinating conversation. virus.g the ebola it has been on a rampage across west africa. we will look at the search for a key or and a human vaccine. pfizer is about to begin. we talk about that a little later on in the program. ♪

>> welcome back. you are watching "the pulse." to his story we are talking about. with more than one million apps, apple and google stores and less the help of apps teasing companies to help them stand out. an israeli startup is a company called -- elliott dokken has more. >> thank you. i am joined by a cofounder of

the largest app testing company. great to have you with us. some of your clients are google and netflix. why do they need you to tell you that in their apps work and look good? >> one of the challenges is and they spend tons of money and time and there's a big gap of what is in the lab and what happens in real life. we bring to the table a variety of devices and locations and we measure and analyze what is going on with the apps for so doing testing. than 100,000ore people who tested the apps and use them and make sure they work and look good. what do they get? how do you recruit? highly professional people and they spent their

career testing. they spend a lot of time. and a lot of them are making a lot of money. it's a potential part of their their and a part of career development. they get exposed to a lot of applications and code. it is a win-win situation. >> you said some of them do well. over $43 million led by goldman sachs. what is the money for? >> of the money is for global expansion. we have a company out of berlin. the headquarters. we increase our technology. we have a bit partnership with ibm. technology solutions. so we thought about growth. more markets and more developers. >> the fundraising.

many people was think of the step would be an ipo. what type of time horizon? a team andocusing on to grow the company. could be a part of it. went to judge exactly, maybe in the near future was to >> year or next two years? >> and may be something. >> you are not profitable yet but you are experiencing growth. growing as a high double digits in year-over-year. we are aiming at being profitable in the near future. added this point, we are focused on growing the business as fast as we can. we believe the marketability to grow. many emerging startups are focusing on apps and wearables and this is where we shine.

>> and not just talking mobile outs on our phone, but a much bigger area. where do you see the most of growth? >> outside a mobile. mobile expansion. connected to cars and wearables. homes.mart software. a lot of investment there. a of traditional brands trying to create an experience for the mobile apps and web apps. we like to be part of it. >> i have to ask you. between the conflict in israel and gaza. impact the gaza conflict you and your company? >> it has impacted for sure. and salesvelopers guys. it is hard to focus on business when there is so much going on outside.

i cannot say it was a good experience for all of us. we will continue to grow the business regardless of what happened. >> more solomon, cofounder does solomon, -- roy cofounder of applause. >> thank you very much. elliott will be back later with a bloomberg exclusive. let's talk about a serious story. an ebola breakthrough might be soon. researchers will have an experimental ebola vaccine. the death toll continues to rise in west africa. let's talk to sam. the science getting it on the ground and to market, it appears to be happening quite

quickly? >> they can do it pretty fast. you are not needed to do field trials with an ebola vaccine. that is when you go out into the world and give people a vaccine to see if it reduces the rate of infection. what you are looking for is a vaccine that induces a response you believe is capable of withstanding the disease. chris is the body's immune system? studies with the mechanisms of which you can do research to test the ability of the immune response. the capability in fighting the a vaccine.me up with >> the history in terms of the science and the cost of this is probably relatively low. does it make economic sense for a company to be involved in the economic backdrop?

>> on the one hand, economics do not come into it. it is something the world has to deal with. the ebola virus is much bigger and much more problematic. this is something that has to happen. it is good to see one of the large pharmaceutical companies is on the books to try and do this. the cost would not be very much. these are sure to trials. the professor you had earlier said that the have it done by the end of the year. it does not take a lot of cost to get it off the ground. there is a possibility if governments around the world like they saw with smallpox and see ebola as a potential bio threat that could make some money in helping these countries build stockpiles of vaccines. onyou said keep an eye dengue.

>> there's been news in japan we had a breakout of dengue fever. family of yellow fever. yellow fever virus. it is a big problem. it is mosquito that is suspected. majors where there is a vaccine. they are filing in the first quarter of 2015 hopefully to get out sometime in 2015. that is where their israel commercial value to be had. a much bigger worry for us from an infection across. when it is a mosquito, it is much more prevalent. sam, will look forward to seeing you. joining us.

taking surveillance to new heights. the blimp that the be the next spy. that is later on "the pulse." ♪

>> welcome back. energy headlines. a new energy source. the thermal well will provide

and schools and hospitals for decades to come. paris will be a big beneficiary. the largest manufacturer of solar panels in the u.s. is importing. america to investigate claims that chinese as benign -- and hacking. -- espionage and hacking. jessica alba is bringing star power. friendly environmental baby products. raised $7y has million after its latest funding round. , bloomberg first word. for our viewers, the second hour of "the pulse." we have an is collusive interview -- an exclusive

interview with the israel foreign minister. we will talk about boris island. focusing on heathrow and gatwick . we'll talk to the chief advisor. ♪

>> bolstering the border. nato reinforcements. president obama heads to estonia. apple's security. the tech giant and fbi in investigating the hacking behind the release of nude celebrity photos. boris island sinks. with the aviation advisor. ♪

>> good morning. a very warm welcome to those in just waking up. welcome back from labor day. i am guy johnson.. this is "the pulse." exclusive conservation. -- conversation. wooton with the cost of the war including the value of the shekel. and surveillance to new heights. the blimp that could be the next spy plane. the spy blimp. a spy blimp. take lots and lots of pictures. talking about security, nato will reinforce the borders of its eastern member states to divert further russian

aggression. president obama will head to reassurances and warnings. hans nichols is following the story. what do we know about the latest nato plans? force.s a rapid forces kobe 4000 deployed within a 48 hours. that is the 28 member countries. this plan was announced in brussels yesterday and will likely be ratified at the nato summit which starts in wales tomorrow. the attorney general of nato when he was talking about this said it is very important not to be naive about russia's intentions and their aggressive behavior is troubling. let's take a look on the ground in the ukraine, which is not a member of nato. in ukraine, and a southeast not

only troops but where they were beforehand making advance around unasked. -- donetsk. it is clear from the ukrainian side they are suffering setbacks. they said they are facing tanks. guy? to thepresident heads baltics. what message will he deliver? >> do not mess with the nato countries. though former soviet countries, eastern bloc. estonia, little when you. -- lithuania. a clear message. when ever the president decides to land the plane that is not contested, it is somewhat in the news and want to be reassured. landing themessage, plane fare and will be meeting with leaders of lithuania and

latvia. he will head to the nato summit. this trip was tacked on not last minute. obama was always going to go to the nato summit but they decided trip to send a message. >> i imagine tacking on to the president of united states' schedule is not something you take lightly. is difficultly, it but they wanted to send a signal. >> they probably had their work cut out. thank you, hans nichols. turn to the cloud hacking scandal that are shaking up the celebrity world. apple and the fbi are investigating nude photos of jennifer lawrence and other celebrities posted online. it is days before the product announcement. these stories are well linked. caroline hyde joins us now.

deal with the investigation element to this. >> the declaration from apple and the fbi as well who very rarely pulls out such statements but because of the increased public interest, they thought it was rational to provide a short statement saying that they are actively investigating along with apple. leaks came in it was put on which is an image staring website. the hackers posted some nude celebrity photos said they could have access to more and could develop more after they hacked icloud. a icloud thats was hacked. jennifer lawrence coming up and the representative is said they are of her and it is a flagrant violation of privacy. added to that in the report that

the photos of kim kardashian, renounces -- rihanna, and female celebrities. up to 100 u.s. a u.k. celebrities. one actress, mary was sent, -- mary weston, said the photos were delete it years ago. it shows the length and power these hackers do have when they managed to get into the cloud. we wonder how they did it. some say there was a bug within the iphone in which you can seek your iphone if it goes missing if it gets stolen. they said it was a bug that allowed that to get hacked. many are hypothesizing that one person is saying but because we know so much about the celebrities and we know their maiden -- and their mothers made in nine -- and we know their me and weaiden na

know all of the tricks. part of the business. the announcement of hardware in the next few days. the idea is apple links all of thehardware we have via cloud. it will be a bigger and bigger part of the business. the usp. the way your iphone can tell to your ipad and your mac. you can interact the document from any hardware you have with apple. of these technology giants use this is the way you can manipulate and accessing your data and documents from whatever hardware. the same with the google with google docs. something they wanted to build trust info stop there are many -- build trust. -- there are many myths about

the data. they said there are many good things like if your computer die and you would not lose that crucial part of your photo out on more data. now we have a setback when apple is planning to unveil link ups with your finances. this is going to be a key concern. of a good timing ahead september dive when we know we will get an iphone 6 and perhaps a wearable device. >> the timing is not great. caroline, thank you. talking about apple a lot more i would suspect. we are going to be talking about the issue of data privacy. what is good technology? a security solutions competence. they have a view of what we have seen. mayor's plan to close

heathrow has been dismissed this morning by the davies commission. our reporter joins us now. what were the issues that davies had with boris island? decisive paper. davies wanted to put the nail in the coffin. you would have to have other areas. there's a natural gas facility and that aereo. a question of how well the airport hub or facility will work together. of gettingue passengers to the airport. they estimated the extra time would be 19 minutes for heathrow passengers to get to the new facility. whole moving of all of the people and businesses and facilities around he threw today.

65% of international goods. -- and this whole idea of moving all of the people and businesses and facilities for where it is today. and in norm's movement. >> -- and this enormous movement. argue that he is told about the need for a hub. he is to stuart wingage, very unconvinced. >> he is. his argument is you can have heathrow and it could act as a hub and you could have gatwick. the aviation industry has really lowloped very much from the cost a sector. will send this enormous growth. he is saying the dreamliner is a hub buster. when you talk to the cbi and other people, they are saying that you need this hub to get a transfer passengers into planes

to make destinations that would otherwise not to be -- get to china you cannot from he threw now. >> in the people from all over of passengers.l once you have a route set to the places, what the cbi was saying, once you have a route, it increases trade a you my how tourists. the cbi was saying with each additional route, it is 100 million pounds. gdp.ional in normative value to the test enormous value to -- enormous value to the hub. as a bad.factor not having to wait the arguments. >> kari, thank you very much.

later on, we will speak with the chief aviation advisor about the battle of london's next runway. breaking news out there. plansjohnson has unveiled to sell an iconic landmark. scotland yards, the headquarters of the metropolitan police, is on the block. twitter 50 million pounds. we will bring you that story later. -- 250 million pounds. break, let'sto check in with elliott dokken. he is back in tel aviv. >> a thank you. announcement that it will appropriate 100 acres in the west bank is damaging by the finance minister. why is israel doing it? i will ask that question to

shorti bennett after this break. please stay with us. ♪

>> good morning. you are watching "the pulse." israel's finance minister expects a small decline in it cannot -- a small decline in economic growth. let's go to tel aviv where elliott is standing by with the

finance minister. >> thanks. i am joined by naftali bennett. thank you for joining us. hasg controversy this week been the planned announcement to three appropriate 100 acres south of bethlehem. your finance minister has a u.s.ed it as damaging official said it is counterproductive. why is israel doing it? >> it was a part of israel before. what we are doing and what we need to be doing is establishing entities and that govern themselves. we have israel and the palestinian entity. we need to progress according to the plan i submitted called the stability plan where each of the people governs themselves. israeli controlled areas, israel will go over and the palestinian

areas, palestine will govern. where ever we hand land and pull out, we'll got there shortly after radical islamist terrorist for stuff we pulled and the gaza strip in 19 67 and what we got is a radical regime shot -- if that shot the tens of thousands of missiles. we do not want it to happen again. the arabs andr to hopefully it will work better than syria does and gaza and lebanon, it is not working. we will not take that risk. >> what message does this announcement send to palestinians and the palestinian authority, which works with the israelis? what message does this send? asideis time to each governs itself and we separate

the we do not need to this mix. we wanted them to govern themselves and us to govern ourselves. >> an independent palestinian state? >> i understand it but we cannot ignore the region. the whole area is falling apart. the only area of stability is really israel. we do not want to risk of that. israel is on the front line of a global war of radical islam and terror. we are there. the battle against hamas is not unlike the battle against isis or al qaeda. if we do not fight together, america, europe, israel radical islam will win. i expect the world to back us. >> most people will say, from ' perspectiveans governing without a state is a nonstarter. moving from that. israel has a cease-fire and it

is holding so far. right toe israel was agree to a cease-fire or should it have carried out fighting? haveoner or later we were to wipe out hamas. i am not sure it is the right time. what we did was good. we beat out with hamas. a zerome out with achievements. none of their demands were met. i am pleased with the results. >> the demands, for an airport and seaport. through gaza into israel. scenariover in any going to happen and under what circumstances and when? can happen ifly they agree to disarm themselves as. we would not to build a fortress of terror in gaza. to derive like singapore or whatever, they cannot have their missiles and terror tunnels.

wethey disarmed themselves, would love for them to thrive economically. >> you said it was a win for israel. hamas has claimed victory. >> you cannot show one achievement. >> there has been in a packed -- >> they had a list of demands but none were met. >> the economic impact and we ministerm the finance of the second-biggest bank that the israel economy has been impacted. where do you see growth for the economy this year compared to where we were expected to go before the conflict? >> conflict is not good for the economy but israel's economy is robust. we are easily going to be able to overcome it. we have a very powerful engines of growth. amidtech continues to grow

all of the conflicts we have had especially over the past year. with had a wonderful year of high-tech investment. it is wrong faster and faster. >> high-tech entrepreneur as well. the biggeste critics of israel. the president described it as worse than hitler for example. trading exports. is a turkey a country not grotta a, happy to see that relationship go down to zero? >> we hope to see a progressive turkey, a modern turkey. we are concerned about the ways that it has been let into. for anot good relationship. as of the same time, we are but 10 and economic relationship with turkish people and hopefully someday they will come to their senses.

>> you do not always the eye to eye with the prime minister. will it is coalition hold to be end? >> i hope it holds. my party is the second largest. we do not want to do it it is not good for israel. if it is up to me, the elections will be held in the initial date. crooks naftali bennett -- >> naftali bennett. i will hand it back to you in london. >> interesting stuff. as we head into break. the pulse number. $1200. how much it cost per hour to run this surveillance of blip. -- blimp. it can stay in the air for 30 days.

we will show you more later this hour. anyway, more coming up. ♪

>> good morning. welcome back. you are watching "the pulse." the currency markets.

conflicting. the pound is down because it looks like it is going to be closer than anticipated. seems tot polling data be suggesting a move towards independence by the population of scotland. indications of that that the pound could be quite extreme. everybody is paying attention to the poll numbers. , gold isof what else picking got. volatility around at the pound. pmi data at a much more elevated level. of 64.e apparently there is a shortage of labor within manufacturing. will talk about this mass is a breach of security for celebrity data when we come back. dozens of other hollywood celebrities were compromise was. we will speak to an i.t.

security expert. of goodspeak to the ceo technology. that is coming up a bit later. break, let meo show you pictures of iceland. ♪

>> good morning. you are watching "the pulse," live from london. i am guy johnson. let's get back to one of our big stories, boris island sunk. the plan to close heathrow airport and build a new hub on an island has been dismissed. joining us now is the mayor of london's aviation advisor. good morning to you. credible as a result

of this announcement. people are beginning to wonder, are you? >> i think they are heading in the wrong direction. the decision will be taken by whoever is in the government after the next election. will be aing if this huge contribution to the debate. they are now limited to two options -- a third runway at heathrow. is gatwick,other britain turning its back on having a hub airport altogether for the next 40 years or 50 years. notheathrow expansion is possible. you do not think this is the end of the road?

>> the davis commission is just a warm-up for the main game, which is going to happen after the next election. continuing to make this case. it is not simply an air force case -- is not simply an airport case. it is about the shape of london, you have a .3 million people. 're going to need to build homes that have jobs. like other cities, hong kong is an example, you can have economic activity in the right place where the homes are going to be. if you can about this in a holistic way. davis is spinning this out until after the next election. at it in a will look different way if the report they get in the end turns out to be as incredible as this one is heading to be. >> that it would be surprising

given the fact that politicians, up until now, have decided not to decide on the issue. you wonder whether or not, with such a huge move that the island would entail, whether or not they have a political stomach to make that decision. there is no evidence to date that the politicians are willing to make big decisions, if any decisions, based on what happens next with another runway. >> this government has made the decisions. areidea that politicians incapable of delivering large projects is not quite right. they can if they want to. here, you have a major problem in london and the southeast -- not only about the fact that we are losing our hud aviation capacity to overseas and all the economic problems that arises. also the demand for homes and jobs. think about this as a planning proposition in a holistic way. argument has still

got lots of mileage in it. davis has chosen not to rebuff that argument, but simply to ignore it. he has said we are interested in what you can do in the next few years about where to stick some tarmac. if he chooses to interpret it that way, that is his prerogative. that is not that the government asked him to do. he runs the risk of actually failing to see the picture of the context in which the political decision will be made. >> business would like him to interpret it that way. business wants a hub airport and they want shovels in the ground by 2020. everywhere the cbi said -- said wasd the cbi right, we do need a hub airport

with shovels in the ground. the third runway at heathrow or , it is the same and will last the same amount of time. if you crack on with it, you could have shovels underground by 2020. you need a proper hub airport and heathrow does not provide that. a third runway by 2027 is not going to provide that. you need a bigger airport with four runways, you could have it up and running by 2029 and you meet all the cbi's criteria. that is what they should be backing. they have not said they are backing an extended heathrow. they are open to backing a new airport if the politicians show they are going to crack on with it. you're not going to give me a straight answer and i understand the reasons why. let's assume the island does not go ahead. we need heathrow, yeah? >> no, we need a proper hub

airport. heathrow is not going to provide us with a proper have airport. >> taking it to the original premise, let's assume that they this -- let's assume that davis is taken on board by the politicians and they decide they are going to go with his views. they're not going to proceed with the island. the only option left to provide a hub is heathrow. >> heathrow does not provide a hub airport. i'm trying to give you a straight answer -- >> no, no -- >> it is possible. it is likely that davis will come up with the wrong answer and possible that a future government will adopt the wrong answer as a policy. what is one's reaction? .ay people makes mistakes maybe that does not matter.

of lifehrough the rest saying i was right and they were wrong and here's the proof. that is the reaction you get, isn't it? are you to say what going to do if the government of the day makes the wrong decision -- well, they will make the wrong decision. that is what they are like this to do. but the country will suffer the consequences and you will see those consequent is being suffer. it is already the case for the majority of this country. airport, 27 u.k. cities are connected. are connected to heathrow. if they want to do international travel, they have to go to a foreign country. they cannot get to the capital of their own country. that is bizarre. a proper airport with spare capacity, as the cbi said -- spare capacity is a crucial phrase -- could correct that.

heathrow is never going to offer you that spare capacity on an incremental approach of building a bit here and a bit there and trying to trick people into thinking that is the last they're going to see. you are turning your back not just on london but on most of the u.k. that is why a number of chambers of commerce road to davis, he ignore them -- that is why a number of chambers of commerce he ignored them. they said keep this in the game, it is important to us. >> a final question -- the mayor has announced that he is going to run for parliament. he did so downstairs in the building i am sitting in now. do you say that it is going to remove some of the impetus that has been behind the island option, the fact that he is going to have other things to think about. it is that a blow to the continued push for this to happen?

on thell not comment's manners parliamentary ambitions. as i have said, traipsing around behind him as he is doing media, he is standing only about 100 yards from me. i've heard a ferocious defense of the case he has been making on behalf of london for the last six years. i see no flagging in that whatsoever. that is what i can see with my own eyes at the moment. cases is sticking by the that he passionate believes -- the casesticking by that he passionately believes in. the homes, jobs, and the reshaping of london that is necessary to accommodate 10 million people by 2030 and over 11 million people by 2050. >> thank you for your time, chief aviation officer to boris johnson. other top headlines -- barack

obama heading to estonia today. set to warn russia that nato stands by its military commitment to security. nato secretary-general said yesterday that the organization is planning a force of 4000 troops that will be deployable within 48 hours. flexibility in response to rush's alleged intervention in eastern ukraine. the swiss economy unexpectedly lost steam in the second quarter, gdp was unchanged in the three months through june. estimates were 0.5% growth, the weakest quarterly reading in two years. private consumption was unable to make up for fundtech sports. -- for slowing exports. uber facing a ban in frankfurt. drivers doays uber not have the permits to carry passengers under german law. one of at least 4 legal actions against uber in the country.

a breakthrough in ebola researcher might be near. researchers from oxford will begin human trials soon. we spoke to adrian hill, director of the institute working with glaxosmithkline. >> i think we're pretty close. we are aiming to be in the clinic this month. probably in a couple weeks. this research program goes back 10 years, a lot of collaborations have been involved. the national institutes of health in bethesda, several companies, small biotech companies and now glaxosmithkline are all contributing to this program. >> joining us now is bloomberg intelligence's sam. in terms of what the process is here, we are going through a phase of containment. and then hopefully eradication of this virus. what is the timeline on that ? >> containment is the best a

vaccine can do anyway. timeline -- it depends. if you listen to the world health organization, they believe there are more infected people that have been reported because of the stigma and the issue with health care in africa. i think it is very difficult to tell what the timeline is. as soon as the vaccine is available, you can build a ring around it. you can vaccinate the medical personnel and first responders and the family members. that, already, is a significant step forward to containing it. once you contain it, the next question is can you treat the patients who are already sick? zmapp is the drug that has been mentioned that has shown some potential. that really will depend on what the outcome of the trials are. >> the timeline is very quick. >> the vaccine can be quick, all you need to do is show that in humans it is generally safe. most vaccines tentative.

and that it introduces anomie response -- and that it introduces an immune response appropriate.k is price, at the share cardiovascular news. it is huge for this company. bigovartis has a couple of patent expertise is dealing with, like many pharmaceutical companies. a pretty vascular drug has expired in july. drug expiredscular in july, you see the effects of generics. a very important cancer drug that did around $5 billion of 8% ofin 2013 and was revenue. that goes off patent in 2015 and the first generics are expected in 2016. most companies have expected

that and others have been lucky enough to back fill with new drugs. has shown some very strong efficacy in treating a disease called heart failure. what millions of people suffer from, especially as they get older. the data that we have seen suggests that few people have coined the phrase uber blockbuster. the lipitor sales of $12 billion, it is a drug with efficacy that we have seen a 21% reduction in mortality rates and a reduction in hospitaliz ation. it could pluck some of the whole -- it could plug some of the hole. fazeli from bloomberg intelligence. we're going to take a break. ♪

>> welcome back, you are "the pulse." the scandal that is shaking the celebrity world. apple and now the fbi are investigating reports that hackers used the icloud service to steal photos, some of which well-ude, of several known stars. we spoke to an ethical hacker to find out how cyber crooks get past our defenses.

>> my name is james, i am an ethical hacker. on sunday, hackers posted a large number of photographs of celebrities in compromising positions. in what might the the largest breach of celebrity data online, ever. the photographs, posted to a large number of forums, included reddit, celebrities like jennifer lawrence, kate upton, and kirsten dunst. so far, over 100 celebrities are included. not clear how the attack was executed. the hacker went online to a form selld 4chan, he offered to additional images for a number of bitcoins. he reveals that some of the information was collected from sources like apple's icloud. let's have a look at one of the techniques here. what we have here is a copy of apple's password reset page.

the simplest way is basically, guessing the password reset questions. the more advanced version would be to use a tool like this. this is the social engineering toolkit. what i have done is created a "forgot mye apple password" page. what you are looking at here, when we type in a name or a password or date of birth, it provides the information to the hacker so they can log in. it is possible the celebrities might have been duped into something like this. >> all caps of weird and wonderful ways but the result is the same. let's talk about security and technology. the ceo of mobile security solutions. good morning. >> good morning. >> this is creating a lot of buzz. if i'm a ceo, a cto, somebody running a business, and my

business is using the cloud, this is going to make me very nervous. >> it is going to cause you to think about what information do i have running on mobile devices today. >> i am putting more and more stuff on my mobile device, is that the right thing? >> there are safe ways to do it but i think it causes you to ask the question what data is ending up on what device and what am i doing to protect it? >> you are in the business of making sure companies understand the risks they are facing. let's break that down. if they understand the risks they are facing? these are celebrities who may or may not have been duped, may or may not have had to information out there, making it easy for people to get into their systems. i the companies cognizant of the risk they are facing? >> i don't think they are, many companies, especially smaller only thatons, security is a conversation for

banks or governments. they do not believe they have article information or there is a fuller ability there. even if you are not intentionally putting data out, your users are taking their data with them. >> apple has a halo effect. viruses orget the the same security threats associated with other operating systems as you do with apple. does that break this down and put apple on a more level playing field? believe apple is more or less formidable than everybody else. in cases like this, sometimes in casesr building -- like this, sometimes the former ability -- in cases like this, sometimes the vulnerability is the user. the concern for i.t., how do i make sure my data does not end up in that network. >> the opportunity is going to usingnd we will be

mobile devices in ways we have not even figured out yet. what are you doing to get in front of that? towhat we enable companies do is take their data and keep it separate from consumer data. a user would have all their corporate data. if they are no longer working for that company, i am going to take my data off of that device. i'm not going to disable the cloud for their personal content. the question is, is my data interface a protected space? pcs and tablets and it is going to be true for were bulls, google glass -- true for wearables and google glass. was hacked. jpmorgan spent a lot of money making sure it is not hacked. i cannot believe anything is secure. journey, it isa never a destination. i don't think anybody ever stands up and says he saw about

the problems and everything is secure. it is a process of going back and saying do we know where the threats are, where our users taking our data, do we give them the right tools and protect our own? tohow much money do we need throw at it. jpmorgan is one of the biggest spenders on corporate security but it was hacked for three months without knowing it. >> the average breach within an organization is often not known for 150 days plus. au are not going to know for wild , depending on how the attacker came in. i don't think it has to be a huge expense. they are are simple, easy to access technologies that help you. depending on the user, the role, and the kind of day-to-day or try to access, that should guide how much you are willing to spend. >> thank you for stopping by, ceo of good technology. we're going to take a break. ♪

>> welcome back, you're watching "the pulse." somebody woke up and realized there is a real possibility that we could see scotland going its own way. that is reflected in the currency markets. polling data is pointing to this close.ing the volatility in the sterling market has gone through the roof. the pound is under pressure, .5%, despitearound

better-than-expected data in the british construction sector. that wraps up "the pulse," "surveillance is next, live from new york. ♪

>> this is bloomberg securityance." >> the situation has changed. the president will travel to estonia. nato plans 4000 troops for

ukraine. jobs day is friday. month after month, we create 200,000 plus jobs. mbas need not work for general the entrepreneurial urge beckons. this is bloomberg "surveillance," live from new york. tuesday, september 2. i am tom keene. joining me, scarlet fu. he is back -- adam. he was up all night with a puppy. the beast is here. mcallen, she is the color of scotch. i have aged five years in two days. ad eight week old puppy and one bedroom apartment. >> the next two weeks will be crucial. manufacturing in asia and europe weekend, one of the things i noticed. tr