>> what is on the a list? apple gears up. at a record high in what could go wrong? forget about it. holds his a road as it the first of seven public minutes to debate the right to bring forgotten. eric schmidt is in madrid. the big guns. scottish and separation. the former u.k. prime minister outlined the plan to give scots more power.

good morning. you are watching "the pulse." i am guy johnson. the latest. inside of the luxury carmaker's model. a grand opening. we will show you the pictures. before i get to our top story, the pilot a union has announced a strike for lift hands. a.m.-6:00h to 10:00 p.m. that is going to be something they could have a significant impact on your travel plans. it is best to check in with the airlines. let's talk about apple's big a day. after weeks of speculation, and if you links to the they are -- and a few leaks. the tim cook is betting on

wearable technology. expecting an iwatch. the details of what we know. the anticipation. caroline hyde joins us. where are we? >> they have been stoking up the hype. cook set we have an incredible pipeline and we cannot wait to share it. they are whetting the appetite and even building a three story building next to where they will begin when the speech in california. maybe to show off some of the software. the devices are basically well in the public domain for what we know. new iphonecting two 6's. better in terms of we hope scratch ability. a stronger screen. display and camera. how do you drive this? we have pretty high end phones

from samsung and bigger falls from samsung. aboutl be software and payments. mobile payments. getting into our wallets. it is a new thing. japan has been paying for their trains for years. from barser a coffee in london on your iphone already using certain apps. thethey going to be using 800 million i taught -- i to users -- itunes users? they have partitions with american express and visa. are google and paypal shaking go right now? how much easier will it to be for you and i to go shopping? this could be a way that that's a their iphones into upper hands because we want the software that is unique.

>> the u.s. in some ways is way andnd europe and security maybe it would insist the united states and having a better option. i wonder if the big long-term story is health care and to be iwatch will be more focused on that. >> that's where the wearables and a new software kicks in. we are expecting an iwatch or whatever it may call. the fashion is going. marie claire. it will kick in with health care and home kit. it could be quite specific to women because they feel women are the goal two. we understand nike and reebok have been trying to tap into the female audience. we are the ones they use the fitness apps far more than men do generally. we have more space. something more jewelry like. and do they want to do perhaps that's why that the

three-story building is to show how good count calories and our steps and also get our radio working in our home and tv. maybe get a bluetooth or streaming music are programming your cooker. that is what they want to show off of. how it helps your health and home and hardware teaming with the best software. >> caroline, thank you very much indeed. another tech giant, google will hitting the road for answers. it are facing the first public meetings around europe to debate a court ruling. hans nichols joins us with more. what is the strategy? >> the strategy is either one giant publicity stopped or an attempt by google to seek feedback from the users who may want to be forgotten. you will eric schmidt on stage. we do not know if we will have cameras in there but the first

meeting is in madrid. spain is where the initial court case originated that led to the european court of justice leading the right to be forgotten ruling and then on to rome. we believe paris and warsaw and munich and brussels. the criticism is these town scaleare kept toward the of you have a right to know in terms of the public what someone else might to be doing. the danger and this is the problem for google is it,, apr problem and challenge -- is it problem and a pr challenge. if you want to be forgotten, they said you simply fill out a form a you make the request and we will balance the right of the individuals with the public's right to know and distribute information. when you look at google's market share all through europe, they were in a dominant position.

more than 90%. belgium and france and germany at 93%. you have to go far down to the u.s. which is at 67%. it is in germany where you have telecoms like deutsche of that are leading the charge against what they say is a monopoly by google. they simply cannot compete. between germany and google is fascinating, really fascinating. we have to watch it with another case. that is part of the story. ront dilutes ice you hasn't back -- it looks like they in eu has drawn back. it came from an interview with the eu commissioner on competition. he has to say that he has a lot more complaints about google from the competitors and draw all the -- go back to the drawing board. if there are fines all google,

we are talking about 10% of earnings are revenue which was $60 billion. a massive fine. google which run to resolve it. the clock is ticking. we will have a new group of commissioners. october seems to be the deadline. >> our correspondent, hans nichols. eric schmidt, google's chairman will be addressing users in madrid around 10:30 a.m. london time and we would take you to the event and show you the pictures and give you a flavor of what is going on. i want to take you to breaking news. releasedafety board its findings. the cause of the crash. ryan chilcote joins us. high energy object penetrated the aircraft from the outside. krista there are saying there was no emergency call from the

crew before it crash, no indication of technical fault or that in the crew made an error but it was penetrated. the aircraft in the traded by a high energy object from the outside. that suggests that image 17 as everyone has said was hit by a missile. it's the first official reports coming just two days shy of eight weeks since the downing of image 17 and is stop short -- mh 17 and is-- stop short of saying it was a missile. most, overost the 190. they have been identified in the last eight weeks. 298 passengers and crew were killed. important really here is the language in the report and whether or not they were going to use that word "missile."

product" goes close. it was the out location's and assertion by a number of countries and first and foremost that the united states that it was downed by an sal 11 missile by pro-russian separatists that really solidified opposition to russia and letter to the first sanctions against russia by the european unions. we have a new batch of economic sanctions the eu has a great but is postponing the introduction of. this needs to be seen and light up putting pressure on russia. -- economic sages of the eu, but it has been postponing the introduction of it. russia perhaps playing along with the west in terms of action in eastern ukraine. importantly, is stop short of saying it was downed by a

missile or looks like it was downed by a missile. somebody said it was hit by high energy object. guy? >> it is fairly close. willbout as close as you get without identifying the object and they hit the aircraft. is pretty conclusive and pretty damning piece of evidence. thank you very much. we'll will get more details out of germany. introducing the federal budget and spending outlook. speaking to lawmakers now in berlin. in terms of the details we are getting, he is talking more about what is happening in europe and in germany and he said that everybody should adhere to the european rules. a balanced the budget must book, a normality. a normality.

and we had hints from mario draghi it would be necessary. to boost to spending and maybe balance out the monetary push with a fiscal push as well. we are not getting that from germany. he is enda kenny that everybody should adhere to the rules of a balanced budget. said,y crates trust, he by sticking to its commitments. we will talk more about what the commitment mean with the deutsche bank a very shortly. let's take a to scotland. to save the union, the former prime minister said he will give parliament a bill to grant stronger control over taxation. anna edwards joins me now. some say it may be a little late for gordon brown to get involved or maybe evident that westerners are getting nervous. saying yesterday how

we will see the western part is showering promises on scotland as though vote looms to the former prime minister and chancellor. 2010.t in he said last night we could be proud of what scottish and still be proud of the u.k. [indiscernible] cast westminster as of the villain. to scotland, the welfare, social care, taxation, the economy. that control health, justice, education. we will find out more as it the morning goes on on what it will look like. they are calling get a bride. .- some are calling it a bribe there will be more details as i would've had another poll.

another evidence of the shift. 38% of the respondents here say, yes. 9% s, no. still close. the no has lost 13 points. that is now only a one percentage point lead. we spoke to tns earlier and tim said that there are a lot of undecided. jury still seems to be out on that one. he set it go be "amazing." that is intellectual -- in the oral t -- that is elect oral -- that is electoral terms. expect 84% turnout. they are reporting a large number of people registering to vote. eces of further evidence.

the pound is a little weaker today but not to buy the amount we saw yesterday. not the end of-not the story. >> live pictures from berlin. comments about the eurozone. the take from deutsche when we come back. ♪

>> good morning. you are watching "the pulse." let's talk about germany. is deliveringuble his speech right now. chief international economist of deutsche bank joins us from frankfurt. give us an instant analysis. hoping and maybe mario draghi on this list will provide maybe some fiscal world on the toand side and it is going be sorely disappointed in what we are hearing from wolfgang schaeuble? >> good morning.

one isng that the number a balanced budget. and the whole term .chaeuble has been skeptical in other evidence showing that even if germany went went on infrastructure program to the rest of europe and will be pretty limited. from the european perspective, there is no strong argument to ask a germany to stop and invest more. >> nevertheless, do you think the call will come? the momentum around europe is about freeing may be some of the fiscal pursestrings and maybe it will be easier for countries like france, italy, spain, to spend more money. that will be pressure on germany. do you expect the pressure to grow?

has alreadyure gone. you mentioned mario draghi speech which was well balanced the point on more fiscal spending as respect to those countries who may be able to .fford it put more perspective overall, you look at france, hardly any consolidation in terms of the budget. and the same a italy. they are at the deficit mark. and to be hopeful will be on germany. i think germany will basically a budget.y balanced within the coalition, there is some dispute. the minister of economics wants to have a push in terms of infrastructure and could be debated germany about a crumbling infrastructure, which is pretty much exaggerated. there is no doubt there's been under spending. that could be a little bit more. another question is if there is a good use for public money, can

it be baltimore or from somewhere else -- borrowed or from somewhere else? prime target is to deliver a balanced budget. >> is that rational and that point and a time? the german is a flat entity front end. is it not a rational for germany to borrow money when people are paying interest to do so? you cancertain extent, make that point because we do not have to pay for that. the debt has to be repaid in the future and germany is facing a demographic problem. the deficit will go higher just because of the social spending which is from higher kind of aging population. in this respect, if you look at the intergenerational

perspective, it would be unclear to the younger generation to basically spend it more now. if you look at some the measures the government has introduced, for example, the chance to retire at 63 or higher pension for mothers, that is all stuff that will burden the younger generation. on top of that by increasing the public. i think it is unfair. >> which is more tolerable to the german public -- more public spending or full-blown qe? in terms of what the german public would be more comfortable, which would it be? of thee to figure one options will get on the table. >> i do not think these options are comparable because infrastructure and project in germany, what are we talking about?

investing's about $40 billion a year. from the management side, it could be very difficult to implement. that is four billion dollars. it will not turn the european economy around. i will not see this as alternatives. it is exaggerating the impact. infrastructure spending might have the rest of europe. >> good point worth making. thank you very much. we will take a break. we will see you then. ♪

>> welcome back to "the pulse." europe.ere in lows around the ftse 100. down by 0.3%. the dax in negative territory. the san francisco fed. more dovish than the federal reserve. fed more optimistic about growth than the market? yield treasury up a little higher. fx market, you know where the noise is. it is sterling. we have come down a fair amount. down by 4%. manufacturing production.

the man who will bring you the data is guy johnson. he will be back in 2. ♪

>> good morning. welcome back. you are watching "the pulse." industrial out put is a raisin by 0.5%. it is ahead of expectations and estimates. we match estimates there. not the most useful of numbers. it is clouded by a number of factors including revenue. nevertheless, slightly more positive on the industrial side

of things. beating the estimates. let's see if we can show you the pound and what is going on. it has been on a downward trajectory. it is been higher on the back of this data. the data taking gus to 1.6 fractional he up on the day. -- at the data taking us to 1.6 fractionally. apple is releasing new products today. apple stock is nearing a record high as they anticipate the devices. the stock of maintains its value. iraq parliament has approved a new government. president obama made it clear the u.s. military is supportive. secretary of state john kerry will be there this week to build a coalition. he called the vote a major

milestone. the duchess safety board is out with a report of the downing of flight mh 17. it said it was hit by a high-energy object. the board will deliver a final report within a year of the july 17 crash. ryan chilcote is here. i think it is interesting, notable they did not say it was downed by a missile. >> pretty close. penetratedrgy object the aircraft from outside. do thinknergy hit, i of very few birds that the travel with high-energy. >> it would take a large flock. consistent with what would happen if -- exactly. missiles shy of the aircraft and sent shrapnel.

evidence and when we saw parts of the airframe on the ground and there was evidence of -- drop no effect. >> you wonder why they do not say it missile and maybe that cannot proof. this of first official investigation. we have heard all types of allegations from of various countries including the united states. saying it was downed by an sall 17 with russian assistance in the insurgent trolled area. what they did say as a wall was there was no emergency call. we have the results of the black boxes. -- what they did say was there was no emergency call. no indication of technical fault or there was crew error. by aaying it was downed missile but stopping short. it is important and the sanctions perspective that it wasn't the downing a malaysian d thet mh 17 and it cemente

support of sanctions and we got to be first batch of eu sanctions against europe and the united states introduced their others and other countries. months are almost two later and the eu has agreed but not introduce a second batch. >> the trigger for that could be what? h ruse almost ineffective on the ground. there have been truce violations. >> we do not know what to betray their is. we were expecting the sanctions to be agreed on friday. -- chris we do not know what the trigger is -- >> we do not know what did the trigger is. iswas thought the sanctions what brought the russians to the table and the first place and the pressure needs to be applied. it looks like the trigger is, how well the cease-fire goes, does is stick? of rolling back

sanctions, it will be russia in the eyes of nato and eu and the united states, rolling back the forces it has in ukraine is self. mature good for de-escalation -- for de-escalation would be if all of a sudden they start shooting at one another in a major way and the parties say the cease-fire is off or ukraine says it is off. there is a trigger for de-escalation, pulling troops out of ukraine. and russia said it they do not have any. >> thank you. let's shift gears. mobile technology. a thousande is worth words, what does your online mug shot say about you? that is the idea about the israeli startup. to tell youhers

what are they seeing of you. it sounds painful. elliott gotkine. >> i am joined by the founder and ceo of getyou. great to have you with us without what is the big idea? -- a great to have you. >> what is the big?idea >> we show you how the world gets a year. -- >> what does the big deal? -- >> we show you how the world gets you. cars andt a tech of say what you think they will be in terms of age and -- you get a cards and eu say what you think that will be in terms of age. what is 84? for?at is it

of ar initial offering discovery tool of discovery how people get you while discovering yourself. our full platform will consist of other things like a personalized feed, content and individuals, and profile. our full platform will allow leveraging each and every friend that you have. >> who are you going up against? is it to take on facebook or twitter or what have you? >> we think social networks do not address the friends that you have. each person has different bra nds. i thought about the fact i have

andd and professor friends friends who startup companies. friend bar with my best and i volunteer once a week. none of the existing social networks take in the different 'riends and personalities aspects. this is crowd source profile will let you know how people get you and how the world gets you and your content while leveraging your different friends. >> you have raised over $1 million. what is the business model? >> we need to leverage and give our users in the back exit -- the best experience we can. we will always have the premier services option open for us. right now, we want to give our

users the best experience. have almost 200,000 users already. are there any people reinforcing stereotypes? offeringhe initial [indiscernible] 174 countries and it was amazing. we have not done the studies yet. as our initialt offering. now that we have those, i can tell you that the most impressive thing are the countries. we have people from iraq and iran and even sudan and the lebanon. this is the amazing thing we discovered. we have not done the right surveys. you to say a szekely what you want. who knows what would happen.

the ceo and founder. options andonly the later on it could allow you to say what you want. picture.r your and she say you are a bloomberg reporter and she said she thinks you are 32 years old. >> i am loving that last bit. i was worried there for a met. seriously concerned. elliott gotkine. joining us from tel aviv. we will take a break. cashing in on mobile gambling. we will look at how casinos are betting big. we will talk to a ceo and that is coming up, next. ♪

>> welcome back. apple stock at a record high. investors anticipate a including an update on the flagship phone. other competitors offer an out of their own. tom gibson reports on a company trying to take a bite out of apple. hasome of the best new tech

been on display. some of the biggest threats to apple. i, achinese company, xiaom smart phone with a six inch display. are reapinges rewards from phones with bigger screens. they said they will dump her their market -- a double their market share. japan shows a phone that can play video games. apple's's biggest competitor, samsung, best positioned. the technology on this tablet was a show stealer in berlin. one of the biggest rumors about iphone 6 is in was -- if it will launch a iwatch. korean firm was not to

be on one launching a timepiece. motorolaola -- lg and released watches. he out the launches will have to do more than just catch the eye. -- anything apple launches will have to do more than just catch the eye. boosting technology is online gambling sells. what is net entertainment? the world's leader in online gaming. do you care about what apple does? does out meaningful impact on what you do? >> it does. mobile gambling is increasing. a you can play casino games were ever you are. if you are waiting on the bus, it is all good. he other mobile devices are very important. >> the better it is for your business?

>> for sure. what you can see it is incremental revenue coming for us. the desktop gaming is continuing to grow. this is very good for our industry. >> how much of your business is mobile at the moment? >> only 13%. grow -- opportunity to where is the opportunity to growth? >> about 5%. >> is it easy to manage? >> you have to have a completely new game but cousin has to fit into the smaller screen. to fit into ahas smaller screen. >> bigger screen, better for you? >> yes. >> that is interesting. apple is about to bring out a bigger screen. about the payment systems.

you do not do the payment systems but presumably as it becomes smoother and more secure and more will -- and mobile, it plays into the story. >> is already secure today. people are confident about putting their money into the casino. when you are dealing with a gaming operator and you can go from the while it to sports betting into the casino and put your money where you want it to go. >> do people get put off, when you see headlines about mobile hacked.being the home depot story we are running weather. how big a concern is it for potential customers? >> may be. it is not a big thing because an increasing flow of players coming in. and the security is high. last year, we had 16.2 billion transactions.

billion? >> yes. >> that is an amazing number. i am trying to put in contact with what a traditional casino deal with. the traditional casino business is going to find it very tough to come back from where it is now and what you guys are doing. is traditional gaming dead? >> absolutely not. it is so much bigger than online for so we are growing rapidly. but the casino is so much bigger than online. and i think we can coexist. for example, if you have a casino in las vegas, it is nice to take your customer with you caesars palacere or whatever. you can have your casino at home. >> or do you work with them? >> not yet. we are preparing to enter the

u.s. market. it is opening up slowly. new jersey and delaware are the states that have opened up online. >> and the potential there is? >> before they closed in 2005, the biggest online gaming in the world and it closed down. it is reopening again. >> some of these guys have great names. sands. is the better part for you to work with them or compete against them? >> we work with them. some are against it but some see it as a way forward. the younger generation is used to being online. >> do you have a apple phone or samsung? >> apple. >> we believe it on that. nice to see you. the ceo of net entertainment.

we will take a break. will it live up to the london launch? a sneak preview of last night. we will do that when we come back. ♪

>> good morning. welcome back. you are watching "the pulse." we are on bloomberg.com. we will be on the new iphone

when it comes out. the luxury carmaker jaguar has launched its latest. it did so in great fashion. it expects its model to go towing tow with the likes -- to go talk to toe with the likes of bmw. -- told to toe with the likes of bmw. isit is the car that jaguar putting their money on. the british carmaker is not just betting there are health but an entire skyscraper on its success. smaller, cheaper and intends to go against germany's best selling cars. takingmself a german, is jag in a new direction. >> it is the car for the younger generation and helping to attract younger buyers and also more females. was flown above the

streets of london over the weekend and on veldt in a lavish show at the capital. it iste with pop star's, quoted by one sunday newspaper as costing 4 million pounds to put on. that is small fry compared to the of all -- compared to the overall investment. pumping 3 billion pounds through march to broaden the car's lineup. >> we have only a very limited product or folio. only offering top end agents. >> debt change -- and that changes now. it will be price on par with the and 40,000 20,000 pounds. c is about, the x

joining rather than beating the competition. there. shocked looking very pretty. in new energy. windand went project. -- project. turbine demand could be a factor. there is uncertainty and that it may lead turbine producers to reduce their scottish manufacturing. that is what we are hearing. singer and rapper has gone green. the collection uses recycled aspects. up.s electric car may fracturing, tesla, may go to toyota again in the future. elon musk said he envisions a

larger product. both of the companies wind down rav 4. now, on bloomberg radio, is the first word. for the viewers, a second hour of "the pulse." we will take you to madrid. google's chairman eric schmidt will address in users about the right to be forgotten. is seven roadshows around europe designed to talk to customers and address their concerns. we will about apples of bigs on selling. what does the iphone it mean? what do the wearables mean? about health systems. it is a big day for the tech landscape and we will get more details on what we can expect.

if you want to follow me on twitter -- we will take a break. we will see you in a moment. ♪

>> what is on the a list? apple gears up to unveil new gadgets, including its first wearable. what could go wrong? google hits the road as it holds the first of seven public meetings across europe to debate the right to be forgotten. chairman eric schmidt is in the dread. we take you there. by high-energy objects, that is what the dutch safety board says happened to flight mh 17.

good morning to our viewers in europe, good evening to those in asia, and a very warm welcome to those just waking up in the u.s. i am guy johnson. this is "the pulse," we are live from bloomberg's european headquarters in london. day,op story is apple's a another big day. after weeks of speculation and a fear leaks, the tech giant latered its new products today. its ceo, tim cook, is betting on wearable technology. are we going to get and i watched? building.on has been what are the leading rumors? >> the leading rumors, we're going to get a couple iphones, they will be bigger, better, and scratch resistant. we will be getting a wearable device and mobile payments. it is a bit too big to fail. of buying into the stock

into fargo. screen, playing to the asian theme, the chinese in particular like bigger phablets. is going to be sleek and the way it looks, how will it be slick in the way it works with software? they're offering payment software, teaming up with the likes of visa and mastercard, american express. hoping to make our lives that much easier. to go into a shop, to spend, exit and then keep track of our receipts. buying railway tickets on their phone, you can go to a coffee shop. youran order and pay for coffee. starbucks are killing in america, 15% of coffees are bought on their app. what is different? big vote toake a

apple, they will use i beacons, purpose built it and try to make apple ahead of the game come make it better than samsung. high quality phones. this is what they have always done differently. this goes to fingerprint security and all the other things they have been building in previously. >> hinting out and getting us comfortable. we are fine with the fact that nts can unlock our phones. therefore making it that much easier. the risk-reward seems to be easing a bit. market by$90 billion 2017, they want to be leading the charge. >> let's talk about health. >> wearables. this dichotomy -- samson makes things and then tinkers with them in the market. they did that with the galaxy gear. >> they had a load of wearables,

they are on their figure six. >> they were not that good to begin with but they got there first. >> apple's making something that is going to work perfectly. but who would be playing to? they have all the big magazine editors. purpose building a three-story building, next to where they are going to be giving off their event. is this to try to show how your wearable device will look beautiful, play to the fashion crowd and also be able to seamlessly work with your health and your home? they have these two platforms, home kids and health kits. health kits are about what nike and fuel band and the like have been providing -- that the fit bit is monitoring your calorie intake and how many steps. how can that play into apps for apple? this is where they get developers excited. why do you want to make for

apple rather than anywhere else. can youhave a home kit, play your music, lack your home, since your heating. trying to bepple an ecosystem and having the beautiful hardware. it is trying to work in with the software as well. we will see how that works together. will suppliers win or lose? >> a crucial thing to watch in the supply chain. >> a couple have done well. nxp semiconductors up 50%. they're going to be behind tech amides. another company will be providing the sapphire that will make the screen. >> the entire business, every place that used to fix your shoes, there is an industry based around fixing mobile phone screens. that could be coming to an end. in my household, we have spent a fair few pounds. >> don't even talk to me about it. >> caroline hyde.

from tech to scotland. the former british prime minister gordon brown is pledging he will give parliament a bill to grant scotland more power. anna edwards joins us. gordon on the frontline. the problem is, we are getting very near the vote. will this have a meaningful impact on which way people are going to go? >> exactly, nine days until the vote. gordon brown calling this the new scotland act. it has the support of all the major parties in westminster. essentially pledging more power to scotland if voters go with a to independence vote on thursday of next week, the 18th. he said we can be proud of what be part ofd still the u.k.. trying to stir up some emotion "no," thecampaign as

it is politely called. the note to independence. casting westminster as the enemy. this is being seen by some as a fight back, gordon brown trying to put some of the fight into the "no" campaign. we will be hearing more about this from various westminster parties, trying to convince the scots that if they vote no, there will be changes afoot. more power will be coming. care, housingcial benefit, taxation, and the economy, we could see further powers to scotland. another poll overnight. another day, another poll. yes tofrom tns, 38% in independence am a 39% in the no for independence. it does show the very similar trend to the one we have seen, the yes campaign is fast closing in on the no campaign. in the words of tns, too tight

to call. we spoke to tom from tns, he says there is lots of undecided voters here. i goes against what some voters have been telling us. the turnout is going to be amazing. guy? >> a critical factor. saw a big truck yesterday in the value of sterling and a number of financials got punished on the back of the poll. what is today's action would you like-- going to be like? >> a little bit more muted. confirming what we already knew, the pound a little weaker. stocks coming under pressure and bouncing a little bit. we had a really interesting conversation with matthew beasley earlier on from henderson global investors. he was saying hedge funds will be poring over. all stocks with substantial exposure worth of the border --

north of the border. he was saying watch all of those and see how they react. he believes some of those have very strong long-term investment cases but there will be volatility surrounding what the vote tells us next thursday. >> thank you very much indeed. the story on scotland, we will spend a lot of time talking about this. let's move on. the dutch safety board is out with a report on the downing of flight mh 17. the plane was hit by high energy objects. the eu approved a new set of sanctions against russia -- postponed them. ryan chilcote has details on both stories. walk me through what the findings are. which is interesting. high-energy objects. we talk about a missile downing the flight? >> we can. australian prime minister just did. he said it is consistent with the view that the plane, flight mh 17, was down by a missile.

that is the allegation nearly every western country may in the immediate aftermath, that it was fired byn sa-11 insurgents and possibly russian troops themselves, using sophisticated antiaircraft machinery. that was corroborated at least by some media organizations who got evidence and eyewitness reports from people saying that they saw that kind of antiaircraft machinery in the area before the downing of mh 17. the report stops short of using the word "missile." -- a number of high-energy objects penetrating the plane from outside of the plane would be consistent with what you would expect from an antiaircraft weapon. what it does is explode short of the aircraft to come as you were putting it, increase its opportunity or probability of striking the plane. they have stopped short. this is the first official is pulmonary.f it

it is going to take them up to 10 more months to get the final report. everyone will seize on this. we should see this in the vein of pressure on russia. it is not a market event and it is not going to affect any specific companies. it might put a little bit more pressure on russia. we've already heard from some of the rebels, who were talking as if this report exonerates them because it does not have the word "missile." >> draw a line between this story and the sanction story. >> it was the downing of mh 17 that cemented the case for sanctions against russia. the eu imposed sanctions. the eu has agreed on a second batch of sanctions but stop short of imposing it. saying it wants to get the cease-fire agreed to over the weekend between the separatists and the ukrainian military a chance to work and evaluate it. saying they will keep those on hold for a few days. will this be enough to trigger

the imposition of those sanctions? i am not sure. bringing theely whole issue that really escalated this conflict into an international one, back into light, and will be seized on by not just australia but the u.s., the u.k., all of the -- the netherlands, of course, who put out the reports -- all the countries who lost a great deal of citizens in the crash. you know what, we cannot let russia get away with this. we have to keep pressure on. >> ryan chilcote on the latest on mh 17 and the sanction story. coming up, apple's next-generation tim cook will roll out a new product line tonight. again changes people are talking about yucca the top editor from the u.k.'s biggest technology website weighs in. ♪

>> good morning, welcome back. we're live from bloomberg's european headquarters in london. we are talking about apple. hours away from the big launch. anticipation has been building. baker iphones, wearable devices, mobile payment systems -- health as well. , a lot to digest. we are joined by the tech writer for the uk's biggest technology website. a lot anticipated from this

event. ideatly we got used to the that software is the more important thing for apple. there is some big hardware announcement that could be significant as well. for the first time in a long time. >> it has been an interesting time for apple. they seen people like samsung blow past them in terms of big screens and things like that. they realize that people do not want just a small son, they have to offer something that is in the tiny iphone. people are moving to enjoy. it is important not just to get the software right, also the hardware. is exciting.hone maybe it has a scratch resistant screen, unbreakable screen. that is exciting. it is not a game changer. to what extent is the wearable device going to be the one that we end up focusing on? >> apple has a track record of coming slightly later than their rivals and doing it really well and really catching the attention. they did it with mp3 players and the ipod.

the smart watch market is still in a stage where apple can really show people how to do it. apple are very good at taking an idea and making it wonderful and making it something that people love. that is what they're going to try to do this time with the iwatch. of the software, let's talk about that and relationship to the hardware. payment systems, they've made it clear that payment systems are going to be a part of their system is in for. apple is a core company that does core things. financialng of the system, you when i think would be a place that apple would want to spend a lot of time. apple would not think would want to spend a lot of time there. >> they dominate the market in terms of finance. interestinglye so becoming our wallets. doing away with our wallets and the going away with paper and apple coming on board

is going to be vital. maybe not right at the moment. two or three years' time. if your phone does not do the things apple's device will do, you'll moved to another device. it is important to establish in cell size players and say we are here, trust us, we are the future. asto establish themselves players and say we are here, trust us, we are the future. >> this has been around for a long time, this is not new technology. going to change the nature of our relationship with the device. >> is hugely important. some devices make little sense and have things like payment. we talked about in sectional -- we talked about contextual computing, stuff we wear that knows where we are and what we are doing and can you give us information. and iwatch becomes useful if you are at a supermarket and you , youro use your card

watch knows you are in the supermarket and you can touch it and it works, that makes sense and changes these are large dynamic. thing,mes a different rather than waiting an oyster card. >> >> on the london underground, yeah. >> you can just touch your watch, it becomes interesting. contextual computing is important and something that will be the future of technology. apple is really keen to get involved. >> how much do you think people will be put off with the security scandals that exist around this technology? trustingbecome quite with our details. although they get in the headlines, people unlike google like google- people and apple, the majority of people trust them. theeel that given them or governments, we trust tech companies more. settle much more by

giving our details away. nhscannot stop using the but you can stop using apple if they are responsible for a leak. there's a vested interest financially for the companies to be as safe as possible. let's bring up the nhs, talk about health. do we understand how these devices will be used to monitor our health? talk about the number of steps and your heart rate, that feels mundane. we already have devices that can do that. the owners have been around for some time. aboute a bit of thinking where we are going with that element. >> it is about joining the dots. i do not care how many steps i take. if you start joining it with other things that we do, it is contextual computing. i burn can tell me that more energy than i should because i've been thinking about something else and maybe i should be raising my blood sugar, if it actively helps me.

it gives a target that is more achievable and becomes part of your everyday life, something you actively think about or just in the background. for people who are healthy, it is less of a concern. an apple product, but something that can monitor your fluids during the day, that could be incredibly important in the way we live our lives. if it is saying you have not had enough water survey, you are suffering, your skin is beginning to crease. might become very interested in this. what it will do today, it will not impress everyone. options.exercise our it becomes part of everyday lives, it does more than just -- it starts joining the dots. >> how quickly does that happen? how up to speed with the

developer community be on providing us with elements that go with this? how far in the product lifecycle time are we in a year's >> if you give developers the technology, data coming in, the feel they need, they come up with amazing things. i want to be millionaires and they have to have the best and most innovative out. market is set up for innovation. more data and power you can give seelopers, that more you fascinating things. u.k. editor for tech radar. let's move on. we're going to be talking about the vips behind some interesting brands. in the meantime, i will take you ceo, dr. brents.

a significant return of money to shareholders. good morning to you. in your share price, returning money, a little bit of a surprise. why the decision to do this now? we have done very well on cash generation over the last quarter. we have also successfully grown our portfolio. a lot of cash at the moment. our shareholders participate in the strong cash generation. ofs is also a signal confidence in our own company. >> is there going to be more, are we going to see from it returns of shareholder money to shareholders? there have been asset you have

disposed of and there might be further assets you might dispose of. are we going to see more money returned to shareholders? >> when you run a company like the ceo tothe job of do responsible portfolio management. it is the focus of the new strategy to drive organic growth for. ween the many acquisitions have done in the last year, we have some non-core assets in our portfolio that we identified and found a better home for. we will continue doing incremental acquisitions as appropriate and if needed we the maturity for this done, and we will let our shareholders participate in the success. and thealk about m&a possibility of requiring further

assets. the big story in your industry has been what has been happening with ge and oust him -- ge and alstom. are you signaling that that kind of an opportunity is no longer here? abbook at the portfolio of going forward, we are active in a $600 billion market, we can grow organically. there are other opportunities. we announced some strong partnerships. a partnership with philips last week. last week, the leading battery technology in china. we will work together on electric mobility. and as appropriate, we will complement the appropriate acquisitions when the time is right. >> can i ask a couple unrelated questions? order fromken scotland.

can i ask you what your plans are vis-à-vis scotland? what your concerns would be if scotland were to become independent. it is potentially a source of renewable energy for which director grades will be -- which direct grids will be necessary and your kit will be vital. are you concerned about what is happening? >> the politicians do their job and i do my job. our purpose is to supply leading-edge infrastructure solutions to the companies on the countries out there. morning, i amis proud of an $800 million order, connecting renewable operations with the main grid. that will be necessary independent of the political structure. i am confident this will be a good project and that the path will prosper. >> you are not worry. there's already talk there will be fewer subsidies and there is companiesility on

that are likely to invest in scottish renewables if there were to be independence. that does not concern you? is not my job to speculate about political outcomes. my job is to run abb. a great job working with the scottish comforter to prepare for this project. now we have an agreement and we will partner up. the technical need is there, the infrastructure need is there. there is a future on that front. different butou a in some ways related question to which politicians have a big input -- the situation in russia . the industrial opportunity, lies in russia, have you been downgrading your expectations for what you think that market will a liver in the future? >> what i said about scotland, i say about russia. the entrepreneurs have to deal with the political environment

there. i wish the situation calms down and they have a stable set up in the future. and that all parts are benefiting from that. the short-term situation is one that we monitor and we are prepared for different outcomes. at the moment, it is too early to speculate. >> one final question. , what would you do if you were trying to kickstart european growth? some say what we need in europe is a large scale infrastructure spending program? could berrent grids part of that. europe needs to spend money on this kind of kit now. would that be a way that you would go? if you look at the european situation, there are a couple factors. first, we need political certainty and predictability for

the power infrastructure. we need to understand how the energy policy at the european level looks like. it will be beneficial for europe and also for the population to get this environment. then we need to make sure that the policy in europe puts europe back at the forefront and catches up on some competitive disadvantages. mightoncerned that jobs move away from europe if there is no solution found in the short term around energy policy. i am confident that the right people are working on it and hopefully we get an outcome in the near future. europe needs energy efficiency and technological solutions are there. we need to drive awareness on the institutional and individual levels. we need to support the right regulatory framework. we have a new commission that is starting very shortly. should this be a focus?

should this be where we should be spending our efforts right now? we have a threat from what is happening in russia vis-à-vis energy infrastructure. emerging ins story the u.s. that means they have energy advantage over us. how big an effort should there be? put it in context, when we look at the threat that is posed, are we doing enough? if you look at the energy have ape today, you massive shift in the u.s. based on shale gas. you have the russian gas situation. europe needs to fix its situation in terms of the dilatory environment -- in terms of the regulatory environment. if you look at the north gas,can situation around there's a lot of volume being produced but no one is making

money because the prices are so low. as soon as the u.s. open europe as an export opportunity, there'll be more balanced prices. that's a relationship between russia and europe. in my eyes, as soon as it becomes in balance between the u.s., europe, and russia, there will be a more stable situation. thank ulrich spiesshofer, you very much for your time. congratulations on the share price bounce you are seeing this morning. the view from abb. right, currency markets. what is happening. sterling trade is one everyone is focused on. monday, a big drop in the value of the currency. cable trading 1.6107. bounce today.f a a limited waiver coverage rate my becoming in. -- a little bit of a recovery

trade my becoming in. let me talk about today's pulse number. an amazon fire smartphone will cost you. it is a big drop from the phone's previous price, $199. the move comes as apple is set to unveil its latest iphone. we will talk more about that in a few minutes' time. in the meantime, bloomberg top headlines. the dutch safety board says flight mh 17 was hit by high-energy objects. crashications that the was caused by technical faults or crew actions, the final report will be delivered within a year of the crash. the iraqi parliament has approved the new government. u.s. making it clear that support is conditional on establishing a more inclusive government. john kerry is in the group to againstld a coalition

the islamic state. a major milestone. currency future cup -- currency futures suggests the pound has further to fall against the dollar ahead of the vote for independence. a new poll by tns confirms momentum behind the yes campaign of respondents say they will support independence, up from 32% a month ago. morning will continue in the u.s. "surveillance" is very shortly. tom keene joins us with a preview of what we can expect. morning. dollar strength and power and weakness, however you want to phrase it. front and center. the ramifications of foreign exchange is a litmus paper of the global system. we will have kate more from jpmorgan. talking about how to equities, bonds, commodities fall into a strong dollar currency market. looking forward to that.

cupertino,in california. cory johnson getting up at an ungodly hour to tell us about the new products at apple. more importantly, what it means for apple's cash flow. shannon cross will join us and howard linden will join us. great observera of west coast technology in new york this morning. mornings in california, i do not think those two things went together. looking forward to the show. thank you very much indeed. tom keene in new york. to the markets. jonathan ferro. >> 2 hours, 30 minutes. ftse 100, just off session lows. bond market is interesting. u.s. yields have pushed higher. franciscom the san fed about whether the market is more dovish than the federal reserve itself, that note

indicates that. u.s. yields ticked higher again today by two basis points, 2.49%. that is the yield on the 10 year. is the fed too optimistic about growth? more optimistic than the market? what we have seen over the last few months is the bond market more generally pricing and lower inflation and lower growth. u.s. yields have been no different. nor is humming from sterling. one pound buys you $1.61. a chart over the last 30 days, down 4%. andstrial production manufacturing cannot earlier. no longer about the data. it is about monetary policy and factoring in scotland. governor mark carney speaks in an hours' time. it was wage growth, now everyone is talking about scotland. what does he say to the people of the trade union?

waking up in the u.s. and wondering what the scottish independence vote really means. you have the scottish economy making up about 10% of the overall u.k. economy. i have some numbers, looking at the u.s.. texas, about 8% of u.s. gdp last year. imagine janet yellen having to look at the possibility that texas might leave the u.s. i leave you with that. >> that raises all kinds of interesting thoughts. thank you very much indeed, jonathan ferro on what is happening with scotland. interesting analogies in the states. tech now. not just apple, google. google's chairman eric schmidt will address users in madrid, the first stop on his european tour. google is hosting seven public meetings around europe to debate the eu court ruling. hans nichols joins us from berlin. the right to be forgotten. >> this is all in response to european court of justice case the right to be forgotten.

google is going on offense. they are either going to face a lot of public criticism or they're going to get some input that will help them tweak and massage their response to this decision. what they are doing is holding town halls across europe. it starts today in the dread and will go on to rome. followed by warsaw, berlin, london can bring your own case. and in brussels on the fourth. the criticism of the town halls as it will be taped in google's favor. forgottento be balance against the public right to know. look for google to marshall experts and analysts on that very point. what google says is simple, you fill out a form and they are going to make a determination. here's what they say. when you make such a request, we will balance the privacy rights of the individual with the public interest to know and the rights to distribute

information. one interesting fact about google and their position in europe is that most countries are over 90% market share. much higher than the states. france is at 97%. france's 95%., spain and 96%, germany is at 93%. the u.s. is at 63% market share for google. in company, companies like axel arer, deutsche telekom criticizing saying they can't compete with google. their argument in part is because google is so popular with the users in germany. >> hans nichols. this is not the only thing we are talking about. big footprint and the antitrust case. when you look at those numbers, you put that in context. talk to us about where we are with this antitrust case. the drawing board. the eu commission thought they had some sort of resolution to the antitrust case, the 2010 case.

currently they do not. ministere competition of it we can talk about this in an interview with bloomberg tv. there have been a lot more complaints from companies like microsoft and expedia. back to the drawing board and the clock is ticking. october is when a new commission will come in. google has avoided formal charges. a little bit of math. formal charges could mean 10% of revenues, which in germany is -- in europe is $60 billion. a $6 billion fine if they do not come to a resolution. >> auch. -- ouch. hans nichols from berlin. still to come, we all know tim cook. who are the other masterminds behind apple? we show you five other key players. releaseshe tech giant its hot at tonight. stay with us on "the pulse care ♪

>> welcome back. itse preparing to unveil latest version of the iphone today. bloomberg's editor at large cory johnson has documented the first seven years of what we are calling the iphone phenomenon. take a look at how they this business has now become. origins of the iphone can

be traced back to the ipod, first released in 2001. the ipod was so popular, the earbuds became icons. by 2000 six, ipod sales were even bigger than the macintosh. apple was a transformed company. when asked at the next consumer electronic device from apple might be a phone, steve jobs said anything from a carrier was too difficult. steve jobs told a conference we are not good at going through an orifice to get to the end user. they were a ruse, already working on a phone. in january 2007, they announced the iphone. >> we are calling it the iphone. >> apple sold 53 million iphones in the first year, two $.5 billion in revenue. by 2008, apple had become second in global mobile phone sales. after watching apple get up to $10 billion in iphone revenues,

samsung stepped in with the galaxy. a fierce rivalry ensued. by 2013, samsung's market share had outstripped apple's. 551 .3 million iphones have been sold. billion. revenue, $343 it is a global phenomenon. it was initially sold in the u.s. but now is sold in 143 countries and is the single most popular consumer electronic device ever. in china alone, sales have doubled in two years. year one was $12.7 billion. two years later, 25 point $4 billion. the industry. industry. an enormous apple will sell more iphones in the first weekend in the first iphone soul in his first year. a global phenomenon that is universally popular. it is about to have a greater impact on our lives than ever before.

bigs talk about apple's day. it all happens tonight in the u.s. around the world, companies are gearing up for this. lots and lots of businesses are going to be affected by those. let's go to berlin. in terms of what this means for the community, how they create day is today? -- how big a day is today? payment systems, health tips, new devices. how excited are you? >> is a pretty big day. like any apple launch day is going to be interesting. i'm looking forward to getting my own iphone 6. yous more interesting if think about the other things they are going to lunch, particularly payments and wearables are going to be the talk of the day. particularly when you look -- >> let's look at, sorry --

that investors, i think the ecosystem is going to be created around wearables and around payments. very exciting. a really cool company. i am wondering why it is so interested in payments. i kind of know the answer but i'm interested to get your take. how big an effect will apple have in terms of the electronic payment systems? the technology has been around for sometime. what is apple going to do that is different? how is apple when the change the game when it comes to payments? >> apple has 800 million credit cards. it has a lot of affluent consumers and it has trust. that is what makes a difference in payment. the payment network is becoming what telcos have become a few years ago, it is a great business but very little value is added through the network.

way that weange the pay. nothing has happened in that business in almost 30 years, nothing substantial. if you can use your device as a wallet, obviously that has huge applications. >> in terms of the developer berlin, how big an opportunity is this? if you are a developer sitting there were ever you're going to be, how big is this an opportunity for you to write new stuff and get new businesses up and running? >> it's a huge opportunity. ae iphone and ios has been big opportunity since their first launch. the ipod has been a big opportunity. this will be a big opportunity for people in mobile pos and

small andction with medium businesses. this is a huge opportunity, particularly the payment part of the equation. wearables as well. apple has been an amazing at making things mass-market. i expect that the same thing will happen with wearables. there will be -- there are a host of companies that are looking to do things around the wearable ecosystem and building applications. helping apple understand what wearables will be useful for. >> you are close to the developer community. they have had the help cap -- they have had the health k it for a well, how much created there?s >> that is still early. we are working in an augmented timeframe. 10 years ago, none of us had a

smartphone and we did not know what it does, today it is an obvious thing. it will take wearables a few years to become obvious. and health care, we are seeing relatively simple things. trying to leverage basic biometric data. in two years or three years we will see more sophisticated stuff. what is going to be very interesting in health care is the treatment of chronic diseases. monitoring things like diabetes, for instance. through sensors on the patient and trying to make this easier inlife handling the disease over time. >> at sounds like what we need is actually the data still data to start coming in. we need to use this stuff and then we can figure out how to use the stuff. i think when the iphone came

out nobody understood how meaningful it was going to be. looked at inple internet and they looked at e-mail. and then it changed navigation, mapping, banking, a lot of things. this smarttion with phone. i think the same thing is going to be with durables -- with wearables. they're not going to be useful in the beginning. once a good, solid wearable is in the market, the developer community is going to react very fast. in berlin, tel aviv, san francisco, people are going to start building applications for these wearables. i do not know what is going to be -- what are going to be the winners. in three or four years, there will be huge companies build on this new ecosystem. >> expectations are so high going into this, maybe we need to temper our enthusiasm because of the fact that it is going to take a little bit of time to fully realize the opportunity. we will have to leave it there. joining us from berlin.

we will take a break. ♪

>> good morning, welcome back. you're watching "the pulse." caroline hyde and hans nichols join us now.

said in my era that we have lost hans nichols. pretty unfortunate. >> we will talk technology while we have technology problems. >> a point well made. apple, a massive event. expectations were so high. lastre talking to our guess about how the full realization of today's announcement might not be there for quite some time. managing short-term and long-term expectations. >> they quite often wet the appetite. perhaps not with the software and the functionality behind it. many got the hint that that is the direction apple is going. 6:00 p.m. london time is when it kicks off again. i'm intrigued to see this three-story building their having to show off software. >> they have to do that because

-- normally tim cook or whoever walks around and explains a little bit. the fact that they have to do this to explain how to get it strikes me as being interesting. with the technology. another guest made the point, how much will tim cook call upon the high-profile people he hired to distribute what their goal is? >> angela ahrendts, be talking about retail? we have the high-profile hiring in terms of design. that is going to be mark newson coming on board, showing us where the direction of travel is. >> looking forward to it. we found hans nichols, always good news. he's talking about eric schmidt, speaking right now. >> eric schmidt is on set. the question is will he fanned calmlames or will he

passions. about you?s the data when eric schmidt was in berlin about two or three months ago, he said they were going to comply with the ruling and do everything they could. as is part of that. europe to across solicit opinions. i am more interested in audience reaction been to eric schmidt's reaction. the audience reaction, if it goes south and there is real anger, is going to be difficult for anyone, let alone aaron schmidt, to contain and tamp down the anger. >> interesting to see how choreographed it is. going tohey are not want that. how much control you think they actually have? >> right. i don't know if they screen people before they are coming into this town hall. clearly a lot if europeans are upset about google. we will see it comes out. >> thank you very much indeed, hans nichols. caroline hyde. that wraps it up. "surveillance" is next from the

u.s. apple day, they will talk about apple. we will talk about apple over the next 24 hours and again tomorrow. follow me on twitter, @guyjohnsontv. see you tomorrow. ♪

>> this is "bloomberg surveillance." strong it the draghi dollar. the dollar is ascendant.

apple unveils new toys. think deepaught -- value. good morning, everyone. this is "bloomberg surveillance." apple day,ay, september 9. .'m tom apple keen joining me, scarlet apple fu and adam apple john son. -- johnson. >> overnight. another sign of growth. u.s., we are going to get our own read. small business optimism is expected to increase for the third consecutive month. >>