>> david cameron back in scotland as campaigning enters the final days. currency left out in the cold. the ruble hits record lows as russia cost foreign minister -- russia's foreign minister meets john kerry. a failed takeover bid for heineken. this, as the market makes sab the new target. good evening to those in asia.

a warm welcome to those waking up in the united states. this is "the pulse." we are live in bloomberg's european headquarters. we are here in london. we are going to head north. david cameron is in scotland for a second time in a week. he is there to warn the scots that a vote for independence could mean and would mean a permanent break from the united kingdom. the latest poll shows contradictory findings in the referendum. it is too close to call. how close is a? let's find out. anna edwards joins me. >> an interesting -- that we have been hearing this morning. not necessarily calling which way it is going to go, but departing slightly from the too close to call. we spoke to john curtis. he said there is caution around some of these polls and there is some closeness in them. he does say that the no campaign holds a slight advantage ahead

of the yes campaign. the no votes has a small lead. it is easy to see why people make that conclusion. the range of the lead that the no camp has ranges from eight percentage point just down to one percentage point. byther poll put yes ahead five, the most by 8%. john curtis cautioning a little on the pole. -- poll. they did not use quite as many people for sampling as many other polls have done. cameron will be delivering a speech where he emphasizes there is no going back. it is clear that even though he meetings,g emergency

everything else seems to be on hold as david cameron and others had north of the border. very negative in terms of a yes vote. it is not uniformly that way. >> if you look at some of the suggesting people in favor of independent scotland, they quote all kinds of on economic productivity, plenty of academic voices out there. an economist has been advising the yes camp for some time here. he says there is little basis .efore the scaremongering we had lots last week about how there was going to be a rise in prices. is in the prism with which they are looking at this vote. he says it is not about

short-term gains and losses. it is about monetary arrangements. he downplays the foreign exchange risk, saying the two economies are linked. he says this is more about scotland's vision of social justice and whether it can be best delivered through an independence or if the union is the way to go. there are many ways of looking at this. this is going to be negative for scotland and negative for the u.k. reasons it biggest was quoted by those who were going to vote yes and no, when asked what is the biggest factor -- feelings towards the u.k. or westminster. >> that will be interesting. if there is a yes vote, there will have to be a referendum. you wonder how the english will

be feeling about this afterwards. it is quite interesting. thank you very much, indeed. a little bit of news in terms of the economic outlook that we are expecting. downgrading expectations. that is interesting in a week where we have a fed meeting. talking about the possibility of rates being hiked in the united states. how much of a taste of that are we going to get of that from the fed this week. carefully.ch the other event is what is happening in ukraine. the ruble is coming under significant pressure. it is in reaction to what is happening on the ground. truce thathat -- the we may or may not have with ukraine. >> the ruble weekending against the dollar -- the ruble

weakening against the dollar. it is falling to 38 rubles to the dollar for the first time ever. a new record low for the ruble. movies came out with a report -- came out with a report saying that the sanctions are not just bad for the ruble, but for flights, growth, for the idea of russia growing its oil output. the concern was russian oil output going into the second round of sanctions would have been stagnant in any case. there is a concern that oil out the- oil output because of high tech to the industry would actually fall. they are saying that this second round is a credit negative because one of the fiscal strengths, the big credit strengths russia has been able to demonstrate is fiscal strength and that could come into question. >> what is happening on the

ground? thely down because cease-fire looks tenuous. what is the latest? >> there is good news and bad news. mostly bad. we had an exchange -- a prisoner exchange over the weekend. reservoirsged 73 73 prisonersir -- each from their sides. it was something that had to happen for there to be de-escalation. the other two things that have to happen are russia has to seal its border with ukraine to prevent more weapons and fighters coming across. ideally, russia has to withdraw its troops in the east of the country, saying there are still 3500 russian soldiers in eastern ukraine. good thingsngs than happening on the ground in ukraine. relationegative in the

-- aen russia and ukraine russia saying they will not participate in the gass talks planned for september 20. they it are not even willing -- they're not even willing to sit down at the table to talk about it. thank you. joining us on the latest of ukraine. thise watching the brewers morning. heineken has rejected a takeover by sab miller. heineken family, the family behind heineken says they are not interested in this offer. the reason for the offer is interesting. >> it is coming from the number two player trying to woo the number three player. you would think competition issues coming to this -- come into this. both boxes.es

it has a big presence in central and eastern europe. in latin america and africa. no wonder it is quite attractive to sab miller. 51% by theolled, by family. they do not want it. they were approached in the last ofple of weeks ahead of any formal discussions. heineken not liking the idea of combining. grow, but wanting to potentially wanting to protect itself. >> competition is interesting in this business. it is fragmented. you put these two players together, regulators might have an issue. number one player, budweiser and the lights, which has spent $100 billion in the last decade on pumping itself full of other

companies, could be eyeing up the number two player, sab miller. people like the idea of consolidation. wonderople are trying to how you can put the puzzles together, but this is a $650 billion market that is not growing that fast. all about western europe. we are not drinking beer to the extent we used to. in the u.s., it has seemed sluggish. they have been trying to consolidate and cut costs. consolidation helps with that. it is trying to work out who goes where and without a lot of money. it is amazing we are seeing sab looking on spending money on getting bigger. scale still matters in the industry. thank you. what else is on our radar? it highlights of -- the pilots

will walk off the job. its moste is facing disruptive strike since 1998. pilots have walked out and asked that -- and plan to expand. -- a big long haul blow for the business. the low-cost model is being adopted by all kinds of carriers as keeping up with the likes of ryan air and easyjet. alibaba may announce adjustments as early as today. they may target more than $17 per share. that compared with the range we tought we had which was $60 $66. latest polls behind the scottish vote is still too close

to call. scotland goese as solo. we will talk about that next. ♪

>> good morning, everybody.

let's check in on the currency market. the story of the morning is what is going on with the ruble. you should probably say record highs for the u.s. dollar versus the ruble. we continue to have concerns about what is happening on the ground. currency flights continue to be a very big story. as well whentory it comes to the united kingdom. currency is something we will talk about a great deal over the weekend. david cameron back end scotland for the second time in a week. it is still too close to call. committee --search we are joined to talk about the story from the city of london's point of view. business, the city, very slow to get on board with the idea needs to make its voice heard. do you think the level of regret

about that now? >> i think there probably is. wants to get on with its business and it is only when there is a scare that something might happen that it will have a significant effect that they are more inclined to speak out. >> the reason for them to speak out as there is a growing sense that the yes campaign has gained significant ground. it is too close to call. is that a misread of the situation? when you talked about the idea, , tobiggest threat here london, to u.k., to the british economy, it is a small win for the nose over the yeses. possibility of --. how big a threat would've be to the city?

>> it is uncertainty, which is the problem. vote, it isa yes significant that today, not only has the prime minister said this is a one and all decision, they have said much the same. i think he and her stands a problem of uncertainty. he says this is a once in a lifetime opportunity. it would not be helpful if there is a no vote to have a campaign to another yes or no vote. what would it mean to the financial community here in the united kingdom? meando not think it would too much. it would be a reluctance by some to invest in scotland. scotland is attractive to many businesses.

if there was continuing uncertainty as to whether rose part of the u.k., the eu, the taxation, regulation, that would deter investment. it would just be a scottish problem at that point. >> it would have some effect, but i think the effect would be felt most strongly in scotland. it would be felt by the whole of the u.k.. lessons learned by the city of london, is the lesson learned that you need to get your voice heard earlier on? >> it has been doing that. deal ofs a great research, analysis, discussion, and now there is a clear position that is exemplified that britain needs to be in the single market.

>> do you think that voice needs to be more clear and obvious? >> it is as loud and clear as it can be. i think it is fully understood and obviously mines will turn to europe when the scottish discussion may be enabled for the time being. if scotland votes for independence, it will not dominate the political agenda for the next couple of years. everybody will want to get the best possible arrangement for the future. we're going to take a break. we will be back in a couple of minutes. in ♪

clicks a welcome back. you are watching "the pulse." green energy sources can be expensive through a national grid. -- is working to streamline the process. they are using technology to manage the system. joining us now, the company's business director. if i am not aware of what this all is, explain to me what it is. intelligence software that works through a national

grid and larger consumers to drive energy-efficient benefits through the system. it has been about reducing energy and demand. led lighting, performing the same task at a fraction of the energy. what is clear is to deliver an affordable entergy -- energy future. >> supply and demand works better. how do you achieve that? >> dimensionally, national grid buys an excess of capacity to meet seconds. if the power station trips offline, they have another power station to ramp up immediately. they can ramp something up quickly. what we do is we do the same, but on the demand side. we work with large energy consumers, one of our largest consumers is united utilities. most of their demand comes from water pumping.

it is not time-dependent. we can turn off the pumps for a. time or turnod of them on for a period of time, to perhaps draw on wind energy. we can absorb that inane -- in an efficient way. hill and yout up can use that when it comes down hill to drive turbines and generate power. >> we can turn it on to absorb off to createit more capacity in the system. >> there needs to be sufficient scale for this to be logical and for the message that has been communicated to be the right one. >> we have been growing that scale and we are at the point where we are getting to displace power stations with the amount of capacity we can get from our customers. we are at about 10 megawatts.

50 megawatts is almost about 1% of peak u.k. electricity demands. we are creating a tipping point. >> how easy is it to install this kind of technology? a are coming up against potential supply crunch in this country. and happens to be an educational point of view, moving its mindset from a traditional -- to making you aware you can make your demand interact in different ways. it is building confidence that when we integrate software, we are not going to disrupt processes. that is one initial barrier. we are getting to the scale by move -- by proving that we are not disrupting. >> who can make use of the technology? >> the applications are so varied.

large industry and furnaces, metals, heating processes. pumping watering quarries, stored amounts of energy in many applications. >> how much money do you spend on security? >> a lot. we have to be rigorous with our security controls. it is a concern. >> thank you very nice to see you. david hill joining us from open energy. we're going to take a break and still to come, a conversation with the ceo of to each route all. chewy tra -- tui travel. you can follow us on twitter.

we are going to take a break. and we will see you a moment. ♪

>> good morning, everybody. you are watching "the pulse." we are live in london. i am guy johnson. increases thought to the size of its initial public offering. it is on the second week of its global tour. it is trying to convince people to buy into what could be the largest ipo ever. sentenced anas american to six years of hard label for what it has called

hostile acts. matthew miller toward up his tourist visa after arriving in the country and announcing he wanted to -- as freedom. cameron returns to scotland for the second time in a week. -- the latest to polls show contradictory findings. close to call. a lot of uncertainty this week. a big week for the markets. let's find out how we are setting ourselves up. a huge week for europe and global markets. this is how we are cooking things up. red -- sea is red. look at the equity markets and the risk that could develop this

week, russia, the possibility they might get a retaliation side ofs, the russian things, the sanctions could have realty. factor in the federal reserve. they start a two day meeting tomorrow. it ends on wednesday. about atpeople talking that as a pivot from janet yellen. what you have seen is dollar strength. some real dollar strength. it is up against every major currency over the last month. the aussie dollar, much different the dramatic drop right there is off the back of chinese data. disappointing chinese data. well, thes not doing read is that australia will not do well either. i picked out three. miller wants a piece of

heineken. heineken says no thanks. why are they up? they want to block a takeover from --. this one is up because the consolidation in this sector and are -- a little bit of fuel to the fire, the possibility of them trying to come in and get a slice of a b miller. air france, i know you will discuss in a couple of minutes. more strikes in france. >> thank you. jonathan ferro on the markets. minutes, "bloomberg tom joins us with a preview. >> everyone is focused on scotland and they follow over to barcelona and catalonia. we look at the pricing of alibaba.

--shall shum and shot in nnenshinesunshine -- so will join us. we have much more to look at. jamie mezzo will join us -- jamie metzol will join us. we will talk about what vladimir putin can do. an important book -- mr. spears paid a zillion dollars to have lunch with warren buffett. you may remember that from a few years ago. we will talk about how that antieducation did him wrong. >> what do you reckon? -- biggerr the fed event? >> scotland by far. i will feature comments made by

neil ferguson. he agrees with paul krugman. scotland is front and center this week. >> we will have a look at that later. thank you. tom keene, joining us from new york. -- leads the world in a number of industries. perhaps the most surprising hold to fame is robotic cleaners. -- pool cleaners. usuallyg dolphins is cruel, but not if they're plastic and eat her. dolphin robot cleaners are the world's number one, by some links. the biggest and baddest is this

yellow one. it is the wave 300 xl. it can clean an olympic size swimming: six hours. if you take the plunge, it will set you back around $11,000. owners, they pool have a 40% market share. sales are sure -- soaring and have risen almost threefold over the past two years. there's plenty of room for growth. wholeestimate the the 21s -- out of million pools, there are about between 2 million and 3 million pools cleaned with robots. is stillern hemisphere yet to be equipped with robotics. its 2 millionof or so pools are cleaned by humans. share of pool the

covers and alarm systems. it is high tech stuff, but is not to say there are not challenges. any downturn in the u.s. or european housing market would have an adverse affect on the results. secondly, the weather. winter inor prolonged the u.s. or europe will delay orders within distributors and could have a negative impact on the business. >> for now, they are aiming to triple revenues by 2022. >> cool stuff. we have breaking news. air france says that may cancel 60% of its flights tomorrow. that is slightly better than

today. is a big strike. it is going to go on for a little while. have 60% of pilots striking today. a little over half the flights today.nceled every single day this continues it is 20 million euros of cost costlyfrance and it is in terms of public relations if you are flying. is supposed to go on until monday, unless there is some negotiation a resolution. going day by is day, but they're trying to it will be long and short haul flights. airline strike to protect the long haul, but it seems to be across the board. fromis is about the move -- >> it is about wages. they want everyone to have the same wage. what air france is trying to do

is what all of the other network airlines in europe are trying to develop at is to discount unit. they wanted to have lower cost base, lower payments for the pilot. -- the plan they have this for their discount unit based in holland. it would be expanded from 41 planes to 100 planes. if you put that in context, ryanair has 300 planes. it is small ambitions, but so important in terms of the profitability of the company. >> if you are thinking over flipping over, lufthansa, you are not looking any better. >> they will also be striking tomorrow out of frankfurt. this is embarrassing for the ceo. he said last week that early this week he was going to be coming to the pilots with a revised offer. or sayhe gets to do anything, they are saying

they're going to strike. they will do whatever they can to ensure there are some flights. they will be getting volunteers, they will have management pilot doing flying. >> i wonder who will actually do that tomorrow. >> you never know. >> thank you very much. talking of travel, of next, we have an exclusive for you. we are going to be live with the chiefs of tui travel. that is coming up on "the pulse." ♪

>> good morning, everybody. let me bring you an exclusive. travel have agreed on their merger. combine and it will be listed on the london stock exchange. joining us, the tui ceo and the tui travel ceo. it has been a long road to get here.

i remember when this was first announced. i read an analyst line that said this deal was structurally and strategically questionable and financially motivated. do you think anything has changed in the think you will be able to convince most of the shareholders to go along with that? is -- thatbelieve it is the case. i think the structure and strategic are very compelling and it is not financially motivated. it has always been a case of the logic of bringing our two businesses together. on the basis that we could agree to terms that were acceptable to both groups of shareholders. i think that is what we have worked hard to do. we believe that is what we have achieved. it's very clearly -- strategically motivated, vertical integration drives value. exclusive content,

i also the access to the markets and whose content business is strategically, absolutely important. it is a strategically motivated, but the financial rationale is also there area and >> if that is true, why did it take so long to find a deal? when i started in the business, our share price has been half of what it is today. it took a little bit of cleaning up and now, the share price is much better and the conditions are much better. thatnow it is very clear now the equation makes a lot of sense. it took a little bit of time and a little bit of cleaning up, but

now we're in the position in a position to accept a deal and we believe it is not only the right deal, but it is also the right time for doing the deal. business that the exists after this and the vertically integrated model, you have outlined more financial benefits. will there be more down the road? >> what we have outlined today is that there are substantial opportunities in combining the businesses, particularly in terms of growth, which is important for us and in terms of our whole journey. and revenuer cost benefits we can achieve through an integrated business. i think we look at it with confidence in terms of the model and what we have announced. it would be premature to say do

we think there is more of what we want to do. it is to deliver what we have outlined today. we are confident we will achieve that. >> how was the operating environment going to change as you put this deal together? desperately try and change its business model to push more people onto low-cost aircraft, yous, are seeing and around europe as well. you have more capacity coming on from easyjet, ryanair are buying airplanes from boeing. why does this vertically integrated model allow you to stay relevant when that is becoming an increasing part of traveler's lives. is morenvironment competitive and therefore more is important to differentiate and a differentiation means of vertical integration.

the differentiated pieces the content piece. only to have many yes, but biggest leisure hotel operates in the world and a strong cruise line and therefore, the vertical integration is a differentiating element, which allows us to differentiate in the market because we focus on the customer end to end. to rebooking or coming back home and that is what we can do and we are in the unique position to do that. ask a question relevant for this week? advantage for your company and what is happening in vis a yes vote.

i read it could be good news for travel companies because it may reduce the passenger duties that are applied by the u.k.. have you had a look at that? do you have any views on that? noto be honest, we are going to get into the political debate. if there was change in air passenger duty in terms of departures from scotland, that is a small part of our program. >> ok. i will move on. i will not get an answer in terms of stalking -- of talking about scotland. norwegian, can i ask a few quick questions of norwegian. can you give me a sense in five muddled up the aviation industry is going to be

because of the fact that we have seen what has happened on low-cost and i am curious to know what could happen in the long haul. the 78 seven dreamliner, incredibly low cost competitive airplanes that could make long-haul low-cost a viable option. how much planning have you done in terms of that? that tui travel has a strong vision on long hauls. peter talked about long-haul and how important it would be for the business. not only low-cost, but how differentiated 787's are. guess who is the customer and is getting deliveries on 787 -- it is us. we are prepared for future competition in that respect and we're are not afraid of future competition.

contrary, i think we are set up and we have a great starting position. >> peter, do you think the ,ompetition in long-haul low-cost is going to be a reality? the 787.bought is it capable of delivering that business model? yes.tentially, most low-cost airlines are focused on their model, which is more-haul and they find it difficult if they change their model and become a long-haul operator. have a strong, sustainable position because we have this content and unique holiday experiences. integration helps strengthen our position and we do not see our business model under threat. we see the actions we are taking by way of bringing the two businesses together. it further strengthens our business model and gives us the

sustainability. what we are able to do is to match those, whether it is short or long haul flights. we match them with holiday experiences that our customer wants and that differentiates us from everybody. >> thank you for answering my questions. congratulations on the deal. it has been great to talk to you. we're going to take a quick break. we will be back in a couple of minutes. ♪

>> welcome back. the russian ruble has hit a record low. you can see the point. the dollar climbing against the ruble. that is continuing as concern on surrounds of the truce continues to grow. there is another aid convoy coming up, maybe that is designed to bolster the position of the separatist rebels. all of that is adding to pressure. we're watching that. and edwards joins us to talk about the stories around scotland. >> david cameron is going to be up in scotland in two -- for the second time in two weeks. no going back is the message he

is expected to deliver. he will see -- we will see a unity rally. that is at 6:00 this evening. accidents, i am sure. spectator saying it could be a battle for britain day. they are joining that camp. on the yes side of things, the grassroots campaigning continues. have seen that taking place. scotland'sly enough, ability to catch the world's attention, we had a story a week or so ago about catalonian delegation in scotland. sends ahat -- okinawa delegation to scotland to keep an eye on this movement. interesting. the eyes of the world are on scotland. >> thank you very much. our eyes will continue to be on scotland the rest of the week. tom keene will be talking around

-- about it as well. to follow me on johnson.-- @guy .

>> it is too close to call. scotland votes this week on independence. david beckham says, save our shared country.

n forced to look at china. the alibaba roadshow hits hong kong. rubber chicken will not be served. good morning, this is "bloomberg surveillance." we're live from our world headquarters in new york. i am tom keene with scarlet fu and adam johnson. there are no earnings today, is there? what else do we have? >> we still lamenting what happened with the jets last night and a crazy, crazy call. i'm not even going to go there. >> scarlet yelled, "timeout." --chinese industrial outlet output. its lowest level since the crisis. are going to get our own read on industrial production in this country at 9:15 along with capacity utilization, how active our factories are.