>> jobs day. the u.s. is set for a big pickup in payrolls as christine lagarde tells us the country is one of the few bright spots in the world economy. loyalty lost. easyjet profits jump as passenger swotch from air france. jpmorgan says our recent cyber attack invades two thirds of american households. welcome. you are watching "the pulse." we are here in london.

i am guy johnson. what have we got for you? a bloomberg exclusive. we are going to speak to the ceo of accor about the hotel and tourist industry. we are going to talk about french economy as well. tesco launches a new version of this tablet called the huddle. unnecessary distraction for the sampling -- the struggling supermarket? i have actually got one here. it is wrapped up. this is from tesco's pr. this is christmas morning for me. we are not allowed to unwrap it for another hour. we will see what it looks like. should tesco be investing in that kind of stuff? first, let's talk about jobs day. we are watching the world's most important economic indicator, forecast 250,000 new jobs added

on the month. jon ferro is here with more. where does that take us on the path to rate hikes? >> good question. i am more excited about this number than this box. >> you want to be here to unwrap it. >> may be. the quality of the wrapping leaves something to be desired but anyway. , even withwth disappointing numbers last month , the difficulty for me is, we spend so much time looking at jobs that everybody is talking about europe. what the ecb is going to do. a lot of people associating the most in the market to what is going on here. everybody was looking for the euro and the ecb to fill the void that would be left once the federal reserve steps back. doesn't look like that program is going to be as potent as what the fed did the last few years. >> you wonder what stocks are

going to do. >> exactly. it is an interesting story as well from an inflation point of view. inflation actually is and as punchy as you would have thought given some of the data we are watching at the moment. you wonder whether or not that acts as a break in terms of the first rate hike and the trajectory of rates. >> that is very true. i think the discussion about the initial rate hike has done draghi a favor. we have seen such great dollar strength over the last couple of months. it has helped push the euro down. that is one box almost take for mario draghi. asking, you want to get the balance sheet up right, how are you going to do that? they kind of backed away from the signal. the details that we got about the abs program, not clear how big this program is going to be. >> you are talking about this

this morning. maybe at this point in time, he can't get his arms around how big the program is going to be because he is waiting to see. he starts talking about it, the market expands, he did in -- he can do more. he can't then really get to it. >> that is a long game. this is only a two-year program. inhow big does he get that the meantime? you see the numbers out this morning from europe. eurozone composite, and expansion territory by dropping. france, italy, below 50. entrenched in contraction. that is not pretty. >> we will talk about jobs a little bit later. thank you. we are going to take you to hong kong now. protests dragging on the pro-democracy demonstrations. they are tarnishing golden week, a period normally associated with heavy luxury shopping and tourism. andrew davis is in hong kong.

the leadership saying it will have negotiations, but no significant developments in couldof evolution that satisfy the protesters. what is going on? ullthere is quite a l after last night when the students were giving ultimatums and threatening to escalate if they didn't get resignation, which didn't happen, but the chief executive did offer negotiations with the students. it is hard to see what they could agree on given how diametrically opposed they are. today has been extremely calm. there has been a return to the work week after two days of holidays. we have seen the numbers dwindle. that is probably compounded by extremely heavy rain today. i wouldn't want to be sitting out in the middle of the road in these rains today. we are seeing it in the secondary and tertiary protest areas. they are almost empty.

barricades are starting to be opened but the roads are still blocked. there are still a lot of protesters surrounding the government compound. 3000 people work there. the protesters sealed off all the entrances. the tension hadn't this updated but there had been a lull and they are waiting to see how the students will react. >> the hong kong chief executive talking about, they won't let protesters block the offices indefinitely. but no immediate plans to clear them either. again, maybe the long game being played a little bit by the authorities. thet is friday, so today is only working day this week left. then they go into the weekend. i guess they can afford to keep the police presence at a minimum, which they have done since the tear gas episode. you don't see many police in the street even though there are crowds of tens of thousands. it is remarkable to see that

many people and no police. are virtually invisible. they are keeping far away from the protesters. they are at the government building protecting it now but they have kept a minimum presence. the tensions in terms of the potential confrontations have reduced, apart from a few hours yesterday when the students were agitating. it is kind of a semi-calm standoff now. the students haven't given a clear response to the offer for talks. they seem to indicate they are open to it but we haven't heard from them today yet. since been about 12 hours that press conference. >> thank you very much indeed. we will update later. let's talk about what is happening in the united states, a massive data breach of jpmorgan. hackers found a way past the firewalls, compromising two thirds of american households,

apparently. hans nichols is with us. what data was taken, what is the effect of this? >> the most sensitive data wasn't taken. the effect is there is a clear breach in j.p. morgan chase's security. this is a hacker who came in through the front door. they did it by getting a password from a j.p. morgan chase employee and they were able to access the server that way. in terms of numbers, this doesn't quite compare with ebay or target earlier in the year. it is pretty significant. we are talking about 76 million households. you compare that to ebay which was 145 million and target with 110 million. the important thing with j.p. morgan chase, it was 7 million small business accounts as well. here is a statement from j.p. morgan trying to allay concerns.

we found out about this because we had to put it in a regulatory filing that went live last night. here is the statement from the company. "there is no evidence that the account information, account numbers, passwords, user id's -- here is what was taken. a phone number and an address as well as an e-mail address. now the danger is about phishing , trying to get these people to give up sensitive information. internal data identifying companies i recommend that was also taken. crucially, no passwords. that is the message that j.p. morgan chase is trying to get out. this data is secure. it was a breach. now the question, what do they do to make sure that future breaches don't happen and how to have a customer concerns. nobody likes the idea of their

data being compromised. flex impact on j.p. morgan? share price, etc.? >> after-hours trading dropped just a little bit. it will be interesting to see. target was obviously affected. target you could argue had bigger problems. the cyber weakness was just a manifestation of that. we will see whether or not there are severe precautions today. when it opens in new york, we will be taking a close look. >> thank you very much indeed. hans nichols on the jpmorgan hack. america getting to work. we are going to preview jobs data. a chief economist joining us in a few minutes time. ♪

>> monetary policy has been pulling a lot.

+++ we need the right pace and mix of fiscal measures. those countries need to continue to adopt their public finance. we need to have serious structural reforms in place to unleash the potential and our recommendation in order to address the short-term demand issue as well as the improvement in the medium-term is investment and infrastructure. it is needed across the world. >> that was the imf director, christine lagarde, speaking to bloomberg. she tells us the u.s. economy is one of the few bright spots when it comes to the global economy. her optimism gets tested later today. ,ere with more, lena komileva the chief economist at g plus. hot, not too too cold number, don't we? whack's absolutely. i am a bit worried about the too hot number. there are concerns about another sub-200 k number which would not be the end of the world. we had the strongest year for nonfarm payrolls. since the 1990's. this was the longest string of over 200 k for a month's growth in u.s. jobs. the fact that we had a blip last month was down to temporary factors.

what we have seen in the last four weeks is more evidence from the jobless claims that u.s. labor trends are very much intact. that is very good for u.s. growth. is, weam worried about are at a sensitive time for global risk. we have the fed ending qe. we have the market losing confidence in what the ecb can achieve. the last thing we want is a rate hike that could destabilize returns. persptive,uropean more dollar strength would not be a bad thing. , is now theit is cyclical structure ailment. it would have been fixed by now. it is not really down to a currency evaluation. is ahat we have in europe shortage of demand, domestic demand. it is something that a cheaper is quite cheap, it is

not cheap enough in france, but it is cheap enough for the region as a whole. europe cannot possibly overcome the affect of growth and the effect of trade flows on the unions. it is a deficit of demand internally. when it comes to the eurozone, cyclical and intrinsic disinflation or a pressures, and we are in the second year of this now. if a cheaper euro could have fixed this -- >> it would be done by now. achieved critical escape velocity? on the one hand, i see the data telling me the growth is coming to a head. on the other hand, i am looking at inflation data that is that if you look at five-year forward break evens, they are not pointing to a bigger inflationary problem. >> you have to remember, capital theets are looking at

prices of international markets. capital markets have come to realize that even though we are seven years after the great crisis, there is still a lot of production capacity and monetary liquidity, and not enough demand, not enough assets to invest that liquidity in. we have this environment where the u.s. economy grew strongly thehe second quarter -- additional forecast is seen to be conservative. we are looking at probably a 3% plus growth in the third quarter this year. what we also see between the nonfarm payrolls and the surveys is some sign of increasing growth. your question is, have we reached a escape of a i think possibly so. what the fed and markets are concerned about, this recovery

is still very weak. comes to the ability to sustain high interest rates with very low income growth -- >> where is the wage growth in all of this? that seems to be the missing piece in the puzzle. you wonder about sustainability. >> absolutely. we have a consumer that is flying on optimism at the moment. that -- as far as global equity markets are clearly unstable, we have the expectations of quantitative easing ending becoming priced into the market. the fed will be very acutely aware of the risks they were in a year ago.

ofy created the kind volatility in the market that halted the recovery in the housing market. the housing market has not recovered since that taper tantrum. we don't really have that many pillars supporting u.s. consumers at the moment which is why i am concerned about how strong the immune system of the u.s. economy is. is the u.s. economy starting to grow but has an immune problem? the european economy is in a different place right now, still in intensive care. just a quick comment on what draghi didn't do yesterday. nothe ecb credit easing is positive easing. there is a lot of controversy. there are so many people wondering what is needed and what it will do. what we don't have is certainty of what it is going to be.

is something we had when the fed or the bank of england started quantitative easing. we don't know that it is going to have private sector valuations. therefore, both the capacity and willingness of banks to lend -- and third, what we had in the last month is about the worst scenario. business growth expectations and inflation expectations heading south. it is something that many central bank are looking at with full-blown qe. guaranteed not either the size of its balance sheet or the speed of asset purchases or the affect it is going to have. that is worrying. >> thank you very much indeed. lena komileva joining us from g plus.

some good things are coming out of italy right now. new hybrid is easy on the eyes and on the environment. we are going to check out this groundbreaking new model when we return. ♪

>> welcome back. you are watching "the pulse."

lamborghini is best known as the guardian of -- maybe a few other things that sound a bit nicer. it has unveiled a something a little bit different. the lamborghini noise is incredible. how does a lamborghini hybrid work? porsche is making it work. how will lambo make it work? let's find out. this is able to perform at 320 kilometers per hour. i am responsible for the design of the lamborghini. it is a clear, classic interpretation of our first hybrid platform. that this car has 910 horsepower.

decided that this car needs a different dress. we have the battery inside. i was really interested because of our hybrid. it is very elegant. we will never forget our capability to do supercars with extreme and beautiful design, but i think that we can start with a new range of products. this is my personal dream. somethingct can be

that is different. most important story, why not? >> doesn't look quite as raptor as some of the others do, but nice styling. ferro would like one. >> i prefer the petrol. we will talk about that in the break. 62nd asset check for you now. equity markets in london a little higher. december 2013 lows. we are coming off them right now. down about 2% on the ftse on the week. people talking about a selloff. look at the s&p 500. ,n the fx market, euro-dollar 1.2640. italian services data, french services data, and contraction territory. people are slowly trying to work out whether it is the ecb are the fed. doesn't look like it has got much teeth.

germane urging the government action against ecb purchases. a little asset purchase program and everybody is challenging it. >> thanks very much indeed. we have to talk about easyjet when we come back. cashing in on air france's problems. we will find out how nicely when we return. ♪

>> good morning, everybody. welcome back. i am guy johnson. these are the bloomberg top headlines. the world needs bolder policies to avoid week growth according to the imf chief, christine lagarde. she says she is worried that investors are out of touch with the real economy. >> with concern and with a lot of hesitation, because there is clearly a discrepancy between the boy us of the market in many

ways, asset values at their highest ever, volatility very compressed and low, and at the other end, we see a real economy where recovery is not really strong. we see areas of very fragile recovery. >> bill gates also it sat down with bloomberg television in an exclusive interview. the microsoft cofounder spoke to us about the fight to end deadly diseases. >> we are lucky that we can help provide resources to the very best sciences working on malaria, the very best people going out in the field and working to finish polio eradication. despite all these challenges that nigeria has with an election coming up and bo boko , we think inola

the next year we will get the number of polio cases down to zero. that will be the last country in africa that we have never eliminated polio in. >> easyjet shares are rallying today. full-year profit jumped 20%. they saw a traffic surge following strikes at rival air france. let's talk more about that story. kari lundgren joins us with the details. you are telling us that easyjet was going to be the beneficiary of this. the markets should have priced this in, yet we got a big bump in the share price today. >> i am not sure they realize the amount. it is 5 million pounds added to easyjet's revenue by the air france strikes. that was a very healthy bump. fuelalso saw benefits from and foreign exchange. those things also added. they increased their revenue outlook and that seemed to make

everyone happy. place toyjet the best benefit from air france and lufthansa's problems? can we read this across into the other carriers? placed.et is very well they have a 14% market share. their goal is to raise that 1% every year. they focused on developing their position. ryanair has been hesitant about the french market. they were worried about the labor laws. they see other markets that they prefer to target. easyjet has seen this as a business market that they feel they can make headway in. to be difficult unless air france carries on having strikes indefinitely. >> easyjet in general, they are growing in gatwick, at amsterdam, they are looking at italy. that expansion at gatwick, it

does drive down yields a little bit. it is about managing that and making sure those planes are full. >> the load factors are incredibly high. >> they are doing a good job of theing the load factors -- 12 month load factor is a little over 90%. they are doing a good job overall. >> that compares to what kind of number? >> more in the high 70's or 80's. depends on how well they are managing their loads. >> thank you very much indeed, kari lundgren on the easyjet news. shares getting a boost today. tesco. it is turning to tech to try to reverse its fortunes. they are launching a new version of the tablet today. with shares at their lowest price in 11 years, it has to be quite a tablet to deliver on that. caroline hyde has more. she is at the tesco event.

what is expected from the huddle? >> they want us to think that this is bigger, better, faster. that is what everyone is talking about. it is quite a slick evidence. only about 80 people there with one man on the stage presenting. eight colors. just for you, there is one in aqua. you can get them in pink, orange, white, you name it. far bigger screen, 8.3 inches. also, better camera. it key take away here is, might be bigger, better, faster, but it is still the same low price. only 129 pounds. that is a quarter of the price of an ipad, half the price of an amazon kindle. tesco still trying to win on the price point. a key question is whether or not this is all a distraction?

is the critical question. how do investors feel about this? are they comfortable with tesco management spending time on this? >> you are right. has been the key criticism the past few years. they have had profit warnings and now overstatement in profits , meaning they are now being investigated. they were trying to build an amazon. that is who they saw as their threat. this sort of centerpiece that was meant to be where you do your online shopping, thereby spending three times more. looking atso perhaps your music, downloading music box,ilm to buy at blank and perhaps doing tesco banking on the same element. that could be the centerpiece of

thisng -- putting does first. they let their market share be eroded away to 29% now. still a lot, but far less than they used to have. by discounters underneath. clearly, this is what investors are now worrying about. this is why the share price is down by 50% on the year. this is why warren buffett has said he has made a huge mistake investing in tesco. -- the fourther biggest holder of tesco shares. they feel they have lost $800 million on the fact that their executive team took their eye off the prize. you have one quote from the chairman of berkshire hathaway saying tesco owned the world.

one day, it stopped working so well. should bethis sold off. mike, who took the stage, refused to add to speculation. overall, it seems that many want them to focus their operations on the u.k., not digital. >> thank you very much indeed, caroline hyde at the tesco event. we have a hudl. we will and rapid a little later. out of the flash is coming as caroline was saying. the opportunity for a low-priced smartphone, no longer there. that is interesting. he does say this is commercially viable. no smartphone coming. we are going to get some insight into what tesco should be doing in the tech landscape and its core business. -- david gray will be

joining us in a panel. we will debate that story later on here on "the pulse." up, we are live with the ceo of hotel operator accor. how have the protests impacted his business? find out after the break. also coming up, renewables on the rise. why renewable energy investment is getting a new lease on life. ♪

>> welcome back. the hong kong protests have dragged on for a whole week. protesters have barricades around government buildings. this ahead of talks with government officials taking place. the demonstrations have impacted the tourism sector. how much? let's find out. , with aof accor significant foot print in hong kong, joins us now. now onen bazin joins us the phone for an exclusive interview. sebastian, shame you couldn't make it into the studio. bityou talk to us a little -- we spent four weeks talking about hong kong.

it is golden week, a huge week for tourism in hong kong. you own hotels there. any sense about how it is affecting business? too soon forally us to assess it. hong kong alone for us is less than 2% of our core business. it will have a potential major impact on mainland china one day, maybe. being, it is a matter of very sensible to our guests and employees. it is fairly calm and nothing really note to report. >> good to go there. i am sure we will get updated as things develop. you have been in this job for a year now nearly. give us a sense of what you think you have achieved, what is going on. you have been interested in the business for quite some time. talk to us about what you think you have achieved in this time

period. >> it has been 13 months. there are two things in front of me. in terms of strengths and weaknesses. i have known the hotel industry for over 20 years. one is a need for a major consolidation through our core, both in terms of our organization, operations and digital culture. something else which has to be done at the same time, which i also have to attack and make sure we are going to be an actor as opposed to a spectator. we have been making sure we have a new talent pool and reshuffling the organization. that is behind me. now we are in the phase of executing upon the plan. at the same time, i really have to make sure that when it comes

to all the new players in the indeedy, that our core is to be a participant as opposed to a spectator. let's pick up on some of those points. do you need to become a tech company? booking industry is becoming technology-driven. you guys can't be left behind. how does that change the way you approach your business? >> it changes everything. for the last 40 years, the industry has been going through -- the next 40 years tells you that it is going to be client due to clientss being more demanding and with better knowledge of what they want. the client has more awareness. you are sharpening your mindset.

you have to adjust to it. if you look at it, it is a matter of value chain propositions. for 40 years, the value chain was in the hands of the operators. for the last 10 years, they have been eating a share by becoming intermediaries. then you have the trip advisors of the world, which is a digital revolution. maybe the last revolution, the , they are going to be a fourth revolution. you have to go into this technology. we need fresh eyes and new financial resources. >> how much money do you have to put into that to make that work? >> i am afraid you have to wait another three weeks. -- announcing how many

.esources that is a few weeks from today. >> looking forward a little bit as well, in terms of your operating profit targets, i am drawing to get a few numbers out of you. are you happy with the progress that is being made? >> i will make it. if you don't know me well enough, whenever we announce something, we will be achieving it. million,et to 595 which is way ahead of the 525 we had last year. we are in route to achieve it. time, having all the resources to tackle the digital world. >> can i talk to you about what is happening in europe? a lot of focus on the weakness we are seeing in terms of the european footprint, i would be

interested in your take on that. more specifically, on france. john lewis, slightly joking, saying over the last few days that france is finished economically. accor, what is your perspective on this? >> i think it is dead wrong. economy, the second largest economy in europe, still is. it has its own complexity. it is a very viable industry and has capacity to rebound. it is going to take another few years. for me, france is the world's in terms ofination international arrivals, the u.s. being second. the market share we have in france is very substantial. we are a leader. i am looking forward to increase my market share in france. the footprint is extraordinary.

the only market lagging in terms of growth for the past 12 months has been france. unfortunately, likely to remain the case over the next 18 to 24 months. that said, we are in 93 countries. nt, u.k. market is buoya doing well. as are many markets in the middle east and america. we are exposed to france as a matter of 35%, but the other markets are giving me the fuel i need to meet my objectives. >> one final question, other hotel chains have very big, nice, really super high-end hotels in paris. we have just seen a new one open. you don't, any plans for one? >> i don't have any plan, i have some dreams. i missed it because it was not a

top priority. rolls-royce.been but it is time to adjust. i have been telling all my investors that. we cannot be a french-headquartered compan y and not have a luxury property in france. we are working on it. there is no urgency at all. i am a french guy and we will find it. >> we will look forward to hearing about it. thank you very much indeed for your time. the ceo of accor. we will take a break, back in a couple of minutes. ♪

>> welcome back, you're watching "the pulse." renewables on the rise. latest results for new energy investment so a decline has been reversed. let's find out. angus joins us now with the details. numbers, seeing what 2014 looks like. is this just a bottoming out or is this an improvement that we are going to see being generated into next year and the year bond ? is a warm figure, not a hot figure. the third-quarter numbers are very much dominated by china and

japan. there is a big push going on in china. solar as itoring looks to make up the gap left by nuclear. those are the two countries that have lifted this particular quarter. we think 2014 will probably be to 2013. more compared >> we are seeing amazing figures about what solar is going to deliver and how big a part it is going to be of the energy grid going forward. in terms of the investment that is going in, what does it look like? >> it is not enough to make it in the early year part of the picture, but we think that solar is on an upward push that will continue, seeing us come down. they came down sharply over the last few years.

more efficient manufacturing in the far east and so on. we think the cost will continue to come down. deficiencies will improve. facts solar seems that a cash -- be the focuss to of attention. >> print is still very important in that it is a number one. there is a sort of improvement ineffectiveness happening in win as well but it is a mature technology events over. the improvement is slower. in solar, it is happening rapidly. engineering,f the the cost versus efficiency story, solar panels, they used to be very expensive and the output was limited. give us a sense of the scale of the improvement being made in the output of these things.

if i bought one of these things for my roof, what am i getting out of it? >> there are a lot of whatvements on things like angle you put them to the sun and so on. those shouldn't be overstated. they are improvements of a percentage point in one year and maybe half a percentage point in another. they are not the main contributor to cost. people are getting more innovative about looking for places where they can take cost out. in the home, that is an area that is being looked at. the thing. install it is not just about the panels themselves. >> angus, we will leave it there. always nice to see you. for those listening on bloomberg radio, the first word is up next. for our viewers, a second hour of "the pulse." it is u.s. jobs day. we are talking about that.

tesco's new tablet is out today. hudl, is it a distraction? we will talk about that as well. see you in a moment. ♪

>> it's jobs day. the u.s. looks set for a big pickup in payrolls as christine lagarde tells us this country is one of the few bright spots in the world economy. loyalty lost. easy jet's profits as passengers switch from strike-hit air france. and hackers hit j.p. morgan, who says the recent sign air tack affects 2/3 of american households. >> good morning to our viewers in europe, good evening to those in asia, and a warm

welcome to those of you just waking up in the united states. we're live from bloomberg's european headquarters. we're here in london. we're talking tesco this morning. the new version of the tablet is called the hubble. i've got one here. i'm going to start unwrapping it. we're actually allowed to look at it at 10:00. the question is, is this an unnecessary distraction for the struggling supermarket giant? the sage of omaha thinks that investing in tesco was a big disaster. he was unimpressed with tesco's management. should tesco's management be unimpressed with investing in technology? we're going to debate that later on. but first, it is u.s. jobs day. we're watching the world's most important economic indicator. economists forecast 215,000 new jobs were added last month. is that enough? is that a good number? last month was a bit of a eh number. >> i think we're going to look

if the previous month's number actually gets revised. we should try to bundle this together if we can. we used to talk about the u.s. jobs number, and it was kind of like bad number, good news, because the fed is going to do more. this morning we had some pretty bad data out of europe, if you're looking at french and italian p.m.i. numbers for the service sector. bad news, good news, can the e.c.b. do more? what we got yesterday was just actually an example of how constrained the e.c.b. really is. bad news isn't good news for europe, because the e.c.b. is not the federal reserve, and they've tried to do a relatively conservative, small asset purchase program, and as people shout it down, they question the legality of the e.c.b.'s asset purchase program. >> in terms behalf we're going to get out of the united states, though, if we get a strong number today, say it's a really punchy number, the ripple effects could be quite dramatic, because what it may point to is an earlier than anticipated rate hike coming through from the fed, and the emerging markets are going to

be watching that very nervously. >> of course they will, but i think what we have seen is a strengthening dollar so far anyway. we've seen markets pull back just a little bit. it's something people are beginning to think about. there is a federal reserve meeting this month, no press conference, but we will get a statement. in that statement, there's a line that everybody obsesses over, and it says when q.e. ends, rates will rise, something to that effect. well, q.e. ends this month, so the statement has got to change. it's going to be interesting to see how they adapt the language. for me, what's really interesting is it's another very disappointing number. what does that mean for the market? the market has been starting to get nervous about this whole federal reserve debacle and what happens next. so a weak number possibly could move the market more than a big one. >> draghi must be hoping for a strong number though. you've got a stronger dollar, much stronger dollar potentially, plus you have a u.s. economy that's beginning to get going, and that may be providing a little bit of a demand out of europe. >> maybe, but then i look at one line from ben bernanke, former federal reserve chair,

and he's said that he can't refinance his mortgage in the united states. now, we can talk about how tight credit conditions are in the states or we can talk about what on earth ben bernanke has been doing with those fees he gets for speeches. >> yeah, yeah, we'll talk about that one offline. there's a few jokes and a bit of fun to be had with that one, maybe at mr. bernanke's expense. let's go to hong kong now. protests dragging on. the pro-democracy demonstrations are going into the festive period that's associated with a bit of shopping on the island. bloomberg reporter andrew davis is in hong kong with the latest. andrew, we've had negotiations agreed to. is it like that will they're going to end this stalemate though? >> well, i think both sides are probably looking for a way out. the holiday is over, numbers in the protest have dwindled. we'll have to see if they pick up in the as they have been, but i don't think we're going see the levels we saw earlier in the week. the wtr haturned ally nasty.

whatever is sitting out there is getting very, very wet right now. it's torrential rain, or at least it was a little while ago. and i think there's a degree of protests, fatigue that's setting in. we've seen protesters being confronted by people in the streets, trying to remove the barricades, get the streets open again. you know, they blocked roads, businesses have been forced to shut. it's been an inconvenience for the people that are in the three, particularly business people that are in the three protest areas, and they're starting to push back. so tensions, you know, the sympathy that the students had after the tear gas attack, it's still there, but now it's shifting a little bit. >> what kind of effect is this having on golden? what is the back story in terms of business? >> you know, it's pretty significant. there was a report out today saying in the three days, the retailers have already lost

something like $2 billion in hong kong, i don't know what that is, a few hundred million dollars, just in the three days. there's a report that, you know, even macao is suffering, because some of the high rollers that tend to play at the casinos come through hong kong, and they've been canceling their trips. we've seen stores, fendi and others, some have been forced to close their bramplings, and people are nervous about going into shopping areas given the number of people on the streets. yeah, it's had an immediate and direct impact. whether they'll recover those sales if things calm down, that remains to be seen. but they're certainly getting hurt right now. >> andrew, great to get your take. thank you very much indeed. andrew davis joining us from hong kong on the latest on the demonstrations that are taking place there. tesco is turning to tech to try to reverse its fortunes. the grosser has unveiled a new version of the hubble tablet today. i've got one here. my kids have got one of these,

just to declare that. they've got one of the old ones. it's wider. it looks like it's got a better screen attached to it. apparently the cameras are better. the big question is, is this a device that is going to help tesco out of the hole that it's in? let's find out. let's go to our european business correspondent at the launch event. tesco need this thing to deliver? >> they certainly do. the hudl 2, i've been playing with it, it's bigger, 8.3-inch screen. it's three times faster. it's also still pretty cheap. i mean, let's face it, it's nice to look at. i think they'll probably sell more. but last year, think of the fanfare that we had with the launch of the hudl. it was a launch of a business, not just a product. yeah, the chief executive there was there, all about taking on

amazon. it was about putting digital first, and the hudl being the centerpiece of that. this year, we had none of that fanfare. we had just about 80 journalists in the room. it was all for the technology bloggers, it wasn't for the business press. they were far more cautious. there was somebody else at the stage, the head of digital, the man who founded, co-founded blink box. this is what investors are now talking about. sure, this product might help sales, but, well, is it a distraction? is digital a distraction? certainly analysts are coming out and saying get rid of the hudl, get rid of bling box, which is their music and tv streaming service, focus on your core, focus on groceries again. think of the backlash. we've had four executives go. we've had a quarter billion pounds worth overstated profit. it's chaos at tesco, it would seem. this product launch couldn't

have come at a worse time. we're very worried about us getting in there to film the event, worried about the questions. they batted off the first question about what will happen to bling box in the future. no wonder, because you've got the most famous investor in the world, warren buffett, saying he made a huge mistake investing in tesco. they've lost $800 million on their holding because the shares are down by almost half this year. clearly this is a company that's trying to readjust. we don't know whether they will unravel their blink box, but certainly we're not sure if hudl will be the future. but the product, i have to say, it looks pretty slick. back to you. >> caroline, just a quick uestion. the technology unveiling this. 60% come from mobile devices. i guess the question is, does it matter if they're on tesco's device or anybody else's

device? i guess that is the question. they've got to be in technology. the question is, do they actually have to have their own echnology? >> we understand they were going to have a hudl smartphone, and they've decided to put that on hold, just focusing on a tablet. that's a funny one to go with, considering we're actually seeing a slowing down in tablet demand nowadays. you're right, you can basically access the tescoance from any device. there was logic to the hudl to begin with. they said if you shopped offline in the stores and online, you spent three times more. if you accessed a blink box, which is the music and the film downloading business that they have that they bought in 2011, well, that would see a 13% up tick on that. so you can see why they pushed that way. but i think you're right, they do need to be making devices. they need to be focusing on prices at home and the u.k. core business is groceries. back to you. >> caroline, thank you very much indeed.

we're going to have more on tesco's foray into tech and whether it should be investing in an android device like this. we're going to be joined by ross slight and planet retail's david gray in a panel. that is coming up at 10:40. they take very different views of whether or not tesco should be investing in the hudl 2. we'll do that a little bit later. let's turn our attention now to the data breach at j.p. morgan. hackers found a way past j.p. morgan's firewall, compromising 2/3 of americans. our international correspondent, hans nichols, is with us and has more. in terms behalf we know about what happened here, what have we got? >> well, hackers came in through the front door. that's to say that they stole a password from an employee of j.p. morgan chase, and that was able to give them access to the server. now, in terms of data that was compromised, no really super-sensitive data, no social security numbers, nothing like

passwords, but what you did have is you have them taking, getting user names, getting names, getting addresses, getting email addresses, and it sort of adds to the general level of insecurity that so many people have about online transactions. when you look at what this is in comparison to some other big data breaches, take a look at what ebay and target have had. ebay had 145 million accounts that were compromised. target, i believe, in the 110 million range. from j.p. morgan chase, we've got 76 million households, seven million small business accounts, and when you look at this 65 million different americans may have been affected, so remarkably high numbers. this is america's biggest bank. and what the bank is saying itself is that nothing sensitive has been taken out. here's an actual quote from the bank. they say there's no evidence that account information for such affected customers, account numbers, passwords, user i.d.'s, dates of birth or

social security numbers was compromised during this attack. so, guy, that leaves you with what they've taken, which is user contact information, names, phone numbers, addresses , and email. guy, the challenge now is to prevent phishing. that's what we'll see, when people try to trick you into giving up sensitive information, because now they at least have -- they know your address. they know where to find you. guy? >> i guess that makes it a little bit easier. hans, thanks very much indeed. hans nichols on the j.p. morgan data breach. still ahead -- jobs day in the united states. is the country leading the charge in the global economic recovery? we're going to preview the jobs report with a fund manager. that's coming up.

>> welcome back. you're watching "the pulse." let's talk about the currency markets. let me show you the dollar index before we get to the payrolls number a little bit later on. the strength of the dollar is now a massive factor in a number of areas around the world. we have seen clearly the emerging markets onwards, paying more attention to this. you haven't -- you have seen an effect, but you haven't seen a big effect yet. as we transition through this riod through the end of q.e. into the first hate reich, the language, the tone, the conversations coming out of the fed speakers are going to be really important to where we go

from here. is there head room on the dollar index in maybe. we've had a big move. let's find out what happens next. let's bring in a fund manager to get his take on what we're going to get. we were chatting as you sat down about the symmetry of the risk we're going to be looking at going into today's number. a better than expected number probably doesn't change the story very much, but another weak number could. >> if you remember, last month we had a weak number, 143,000 number. prior to that, we had round about hundred,000. this is a noisy series. the market is used to numbers bouncing around. the markets are prepared to give -- we have one bad number, they'll give us the benefit of the doubt f. we have two, that starts to look leak a trend. then you have to ask the question, is the u.s. economy starting to lose steam in the same way that europe is losing steam, china is losing steam, and other economies around the world may number trouble. >> september is not the greatest of numbers to hang your hat on. >> it's a terrible month to

hang your hat on. what you have is you have a lot of students going into education. you have a lot of seasonal orkers coming out of jobs. you have a huge variation. at the end of the day, the number published is the difference between two very large numbers. statisticians will admit that this number is accurate, plus minus 19,000. we might be worried about a number, and really, it's just noise. >> what should we be looking at right now? what is -- if you were to look at a series that are going to give us an idea of where the fed is going, should i look at the inflation number? should it be what average hours are doing? what am i looking to get the best clue at the moment? >> it's all of those. that is where janet yell and not rest of the governments are looking at. you're looking at slackers are within companies before they have to start hiring. you're looking at hourly working, how much slack there is in the labor force, how much

money people are willing to pay to get new workers. we all look at one big number that comes out every month, when really, we should look at a much broader sense of figures, just like the fed does. >> should we pay more attention to the lack of inflation in the united states? if you look at the break evens now, they're not pointed to a great deal of inflation. you look at the five-year forward break evens, they're not pointing to a great deal of inflation in the u.s. system. are we kind of make overhyping the hiking cycle we're going to get into? >> it's a very good question. a lot is going to depend on what sort of growth number we have between now and the end of the year and what sort of forecast people are looking at. in the last 24 months, we've had a tremendous fiscal company on the company. we've been putting up numbers when the private economy is growing 3%. when that fiscal drag comes to an end, next year -- this year we've had 3% growth.

if people look fog 4% next year, interest rates have to go up sooner or later. >> with the e.c.b. not delivering on its promise maybe to boost the balance sheet, we saw european stocks coming off. what's the picture now with u.s. stocks? what's your sense of how sensitive they are to this? what's the expectation that's built in already and what's not built in? >> you mentioned the u.s. dollar, and we've had a 7% move since the end of june when companies last reported earnings and gave guidance. for the s&p 500, which gets roughly a quarter of their earnings from overseas, the currency is going to have a big impact on the numbers that they report over the next couple of weeks, and more importantly, on the guidance that they're going to give for q-4. we could end up with a series of negative surprises, and that could put pressure on large cap stocks. conversely, small cap stocks could actually get a benefit, because they have a much smaller proportion of overseas earnings. and forecasts have outperformed against large companies

tremendously this year, and you could see that start to change. >> are you comfortable with the kind of valuations that are being put on the multiples, the multiples that are being put on right now? >> they trade, which is at the low end of the range. at the beginning of the year, they're at a 50% premium. you've go on remember, the growth rate is something like mid teens average. you're getting 7% or 8% on the s&p. >> the argument is they're insulated, and they're going to benefit more from the u.s. growth story that hopefully is coming through. what's the upside on the russell then? this time next year, where is it going to be? >> the earnings are at 15%, and they stay the same. you can see the russell 15% higher, which puts it at 1300. >> do you think there is going to be this kind of global concern about isolating the ssell is great, but more generally looking around the world, are you comfortable with

valuations right now? there just seems to be -- the head winds just seem to be getting more and more in your face every time you turn a corner. >> we seem to have this decoupling of economies around the world, and before we were all moving together, whether it was europe, u.s., the far east, and now you've got each individual bloc is starting to do its own thing. and how that works out for different valuations and different blocks is going to be very interesting to see as we roll through the next couple of months. europe is looking that expensive gven growth expectations are coming down. >> maybe it will be a decoupling. we'll watch. hugh, thank you very much indeed. we're going to take a break, we're back in a couple of minutes.

>> welcome back. bentley has unveiled its latest car in the paris motor show. it's a bit of a monster, i have to safe. the company's c.e.o. showed us his favorite features. >> this is the most prestigious car we have to offer. it's very exclusive. it's very powerful. i'm the president and c.e.o. of entley motors. of course, the best place for me as an engineer is still the driver's seat. here you can enjoy the sheer power, the acceleration from zero to 100 is only 4.9 seconds.

and to build this beautiful car takes 400 hours. this is the ultimate working atmosphere we have in the bentley, so when i am traveling from a to b, i enjoy to look through my presentations. i think it's the fastest and most luxurious office on wheels. this is really a very luxurious one, our water cooler that is installed right in between the two rear sets seats, and by the press of a button, it opens up, and there comes the cooled champagne and some very nice, hand-crafted glasses. price is 390,000 euros. we will probably sell around 1,000 units per year. our customers like to have it. it's hard to believe that 500 horsepower is not enough. n this league, more is better.

is it going to be champagne or prosecco? probably champagne. we're going to head to france after the break to see why champagne is losing its physician. ♪

>> good morning. welcome back. you're watching "the pulse." we're here in london. i'm guy johnson. these are the bloomberg top headlines. hong kong's leaders still refusing to step down, but he has agreed to talks aimed at ending protests, which have dragged on for a week now. i think these are live pictures we've got coming from the city. it's the biggest unrest since the 1960's. the police are saying they're going to hang back. maybe they're hoping the weather will disperse the crowds. i.m.f. chief christine lagarde says the world need bold

policies to avoid a period of weak growth, but she's optimistic about some economies, especially the united states. >> one of the bright spots. you know, when i look at the advanced economies, the u.s. pops out, you know, in a much better condition, and the u.k. does as well. but clearly on the investment and infrastructure front, more needs to be done. >> easy jet shares flying high today. profit jumping at least 20%. the discount carrier saw a traffic surge following those strikes at rival air france. let's see what's happening in the jets. let's find out what else is going on. over to you. >> here in london, you get in the rebound, big focus is the jobs number.

215,000 is the median forecast. guy, you'll remember when a bad number, a bad jobs number meant good news for markets, because the fed would do more. the same applies to the eurozone. today we had some bad data. france and italy below 50. does that mean the e.c.b. is going to do more? an example of how con stranned the e.c.b. actually are, nevertheless, we're talking about the dollar, as we speak, down by a third of 1%, but that program that mario draghi has come out with, guy, not such clarity on how big that program is going to be, how much teeth it will have and whether he can really expand the balance sheet by a trillion euros. even though it's conservative and it might not be big, the hand is challenging it, and he would like the german government to challenge the very legality of the program, guy. it's much to think about here in europe. i'm going leave you with this. in the bond market, two-day yields in germany still negative, up almost a basis point, but still negative

nonetheless. when you look at the negative yields all the way out to the three-year on germany, look at some of the money that's parked here, just going to give you a number. it's a trillion euros. a trillion euro social security how many global bank reserves, mostly e.m., are parked in eurozone assets with a negative yield. how this develops, guy, could be very, very interesting. do they go further out on the curve by the 10-year money to pick up a yield, or do they pull out all together? if they do, that could get pretty interesting, guy. >> it could certainly get interesting. you say there's evidence the curve is flattening, so it's beginning to come down on the back end as well. there may somebody evidence of movement. we'll have to watch the space. thanks very much indeed. 25 minutes to go until "surveillance" takes to the airwaves. tom keene as ever -- well, he was not there yesterday -- tom, you're back. what have we got? >> back in new york city as we look at the jobs report. ellen will join from us morgan stanley, looking at the market

economics of the american labor economy. and then a conversation as we try to do each jobs day with alan kruger of princeton university. he's a former chairman of the president's council of economic advisors, without question one of america's leading labor economists. he'll not only be with "bloomberg surveillance," professor cruge her help us understand the american labor economy through the 8:30 report. >> looking forward to it. thank you very much. big day stateside. tom keene at the helm. look forward to that show coming up very shortly. w, for the first time, prosecco outsold champagne. they sold more than three million bottles, and the trend is set to continue. caroline hyde traveled to france to visit a champagne make we are over 200 years experience and asked, is champagne -- dare i say it -- losing its physician?

>> this is the master winemaker, and he's picking out something special. >> are you sure you want to? >> more than 1,000 pounds to this vintage champagne. it would be rude not to try some. >> just makes me want to have more. >> crisp, refined, expensive. champagne has a certain je ne sais quoi. but tastes have changed, and its italian rival has seen a leap in sales. often a sweeter physician and produced in northernity leave, cheaper to change. that's seen the italian variety fly off the shelves. >> we sell three times more than u.k. and france. >> philippe is the president. champagne is in his blood, literally.

how often do you drink it? >> every day. >> every day? what time? >> every day, not too much, but every day. >> see how nice it is. taste it. >> it's sharp, isn't it, but really juicy. >> it was founded in 1760 and produces up to six million bottles a year. they're one of the elite champagne houses. so, are they scared by prosecco sales? >> it's good that people , and one t prosecco day we discover champagne. philippe doesn't seem concerned, but he quite he willly admits the rapid rise of prosecco took him by surprise.

the effervescent mood here comes from quality that will win over quantity. >> a great champagne. ou cannot compare to prosecco. it could be compared to prosecco. but agreed, never, never. we are much more. >> it's maintaining its swagger. >> what a charmer. >> but the italian have taken them by surprise once. if prosecco develops a high-end brand, they may have a fight on their hands. aroline hyde, bloomberg. my kind of vehicle. coming up -- the new tesco tablet, the supermarket giant is betting bigger on tech, but with shares under pressure,

should management be more focused on core issues to build its brand? a great panel coming up after the break to debate this. ♪

>> good morning. welcome back. tesco, the giant retamer, is hoping that technology can help it reverse its fortunes. the supermarket is launching a new version of its hudl tablet

today. i have one here called the hudl2. with shares trading at their lowest price in 11 years, this is -- well, it's a nice tablet, but is it going to be good enough? let's find out. caroline hyde has spent the morning at the event where it was launched. what does tesco need from this ew hudl, caroline? >> well, at the moment, i think it will sell pretty well, guy. we've got 750,000 sold last year, so a few quarters of a million. i think they will sell pretty well once again. it looks slick, comes in an array of colors, eight no less, and the fact that it's three times faster, but still with the low price point, still only 129 pounds, about the quarter of a price of an ipad, it still has the allure for many of those buyers out there. but many questioned whether this is a distraction. i think that's why it was all being very downplayed today. think of the fanfare when they unveiled hudl1 this time last

year. the chief executive was present. all the journalists were invited. you got the technology reporters, but also the business reporters, it was a crowd that was there. but today, much more intimate, only about 80 people were actually allowed in. all the technology bloggers. this was the launch of a product last year. it was the launch of a business, guy. it was all about putting digital first. the hudl was meant to be the centerpiece of all of that. it was meant to be the way in which you shopped for groceries, but also downloaded music. you streamed movies by a business they bought in 2011. you were meant to get on the tesco banking app as well. they wanted to take on amazon. they spent a lot of money doing it. they spent more than half a billion pounds last year alone on their digital foray. that was three times more than they spent on lowering the prices of their actual groceries than tackling the competition that have now been eating away at their market

share, aldi and the discounters and up at the top. we've now had the worst sales results, biggest decline in ales in two decades. they fell by 6%. you also had their eyes taken off the ball in terms of accounting. they're now being investigated into their overstated profits for the first half of the year. four executives fired. this has been a baptism of fire for the new chief executive, dave lewis. no wonder he wasn't here today. no wonder they were so cautious about us approaching the head of digital. they did not want us to get any sort of interview with him. apparently they were fully booked. but clearly they are very worried about being asked. when a bloomberg reporter did actually ask the question in the auditorium about blink box, will it be unwound, no answer. they said they're not adding to speculation. they are clearly having to

reassess their focus on digital. does it really help sales? it does drive more demand. with blink box, you spend three times more, as well as an offline, but is that really going to win the war versus the competition in the u.k.? investors don't think so. you've got warren buffett, the most famous investor in the world, saying he made a huge mistake in his investment in tesco. they hold the fourth most biggest amount. they are the fourth biggest holder of tesco shares. they've lost $800 million on that bet y.? stock down by almost 50% this year. clearly this launch came at a pretty tough time for tesco. i don't think the hudl is going to be the answer to their prayers. back to you. >> caroline, we'll be talking much more about this. thank you very much indeed. caroline hyde at the tesco event. we have to take a break. we're going to come back with a debate, some of the issues caroline has been talking about. ♪

>> good morning, everybody. welcome back. you're watching "the pulse." quick look at the currency markets. the big story today is payroll data out of the united states. this is the back drop to that data. last numbers last month, not a great number, a miss in the 140's. we're expecting just over 200,000 this time round, but the margin for error is always huge. the september number, as people leave their summer jobs, go back to university, etc., very,

very volatile. but nevertheless, watch the dollar index later. it's going to be a -- it's going to be an interesting day, i expect forget currency markets. it's already been an interesting day for tesco. it has unveiled its new tablet. it looks like this. it's called the hudl, the hudl2 more specifically. the big question is, should tesco be spending time worrying about being a tech company when it's got so many other problems if its business that it needs to fix? let's debate that now. a retail analyst, and a chief strategy officer join us now. good morning to you, gentlemen. this looked very pretty, ross. it feels nice. it feels like a high-end tablet. it's very,very cheap. just put this in context in terms of what i am getting as a consumer here. >> well, as a consumer, what you're getting is you're getting an extremely powerful device at an extremely chief price, right? so if you look at the marketplace, it's about 37% of adults in the u.k. have a

tablet, and that means there's a lot of head room in the marketplace for a tablet to grow. very different for smartphones, where we're already at maximum penetration. so what you're getting is the opportunity to be able to access all of the internet, all of your entertainment, all of your content, all of your web, absolutely on a very, very cost-effective device, even more cost effective if you're buying vouchers. >> why on earth, david, is tesco spending time on this when we see the share price cratering? warren buffett describes tesco as a disaster in terms of an investment. >> yeah, i did see the news out this morning about the warren buffett comments. i think, really, you know, the hudl tablet, the hudl1 quite well, because they sold a big number of the tablet devices. but i think in terms of looking at the bigger picture, i think really we're seeing them -- we may see them start to refocus on the core food business. we've seen them pull back from launching a smartphone.

we've seen them possibly put up the movie entertainment service, blink box, for sale. and so i think -- >> possibly, we'll see. >> possibly. so we'll see. i think we'll see a stronger focus on the core u.k. food business. >> would that be a mistake, ross? >> no. of course not. it's the near term versus the long term, right? you look at it now, about 12% of all sales happen online for all retail, single figures for groceries. again, a lot of growth there. but customers are shifting. this is about a question of really are you overestimating the short term, underestimating the long-term impact of digital? by getting devices in people's hands and particularly tesco's customers, are you in a position whereby you're seeing the people that shop more and more online, right, and getting that for the future and holding that for the future. the important part about that, as i said, if you shop in tesco store and you shop for groceries online and you shop

for general merchandise online, you're worth three times the amount that a normal customer who just shops in the store. so what we're talking about is increasing the share of wallet through digital shopping amongst tesco customers, and that's a long-term play for them. >> david, they said this morning that 60% of their online grocery sales are done via a mobile device. those are quite compelling numbers for wanting to be in this space. >> yeah, absolutely. we're seeing a lot of customer transactions shift to online, shift to digital. but i think you need to put a cautionary note on this, particularly within the online grocery space. this is not clearly proovepb to generate a huge amount in terms of profit. you know, tesco's bricks and mortar stores, where they generate majority, they're branching out into online grocery. it actually has a detrimental impact upon margins when you talk about profitability. it's sort of a downward edge --

>> is that just a short-term story? as we've just been hearing from ross, is that going to develop over time, and it will become a much bigger part of their business through general merchandising, etc., in the future? >> yeah, it will grow. it will become a bigger part of the business. if you look at a company such as tesco, the majority of sales and profits still come from the stores, and the fact is that fulfilling home delivery orders for food is a very, very costly business. you can gain a lot of top-line sales growth through online, but there are question marks on food over the actual profitability. >> ross, why do i need tesco's device? it's great, thank you very much. and it's at a very cheap price, and it comes with a little button that i can go shopping w. i've already got a multitude of devices. why don't i just put an app on one of those devices and a chief the same aims, but with much less cost invested, management band width invethsd, etc., into the technology

space? >> as i said earlier, there's a big opportunity just for the technology hardware sales, but the real thing here is about the ecosystem, it's about the stat which you see of owning the services, the software, and the hardware, and putting your services ahead of everyone else's, right? that's what amazon has done so well with the kindle device. and in doing so, what tesco is trying to do is to emulate that single ecosystem that you stay in and you basically shop within the whole time. that's why it's more aimed, i feel, at current tesco customers, and i feel that it feels more like a long-term loyalty play for them. >> ok, i'm glad you bring up amazon. i'm going get a point from both of you on this. is this about fear of amazon? i've talked to tesco exec tfs a number of times, and the thing they tell you kind of quietly is that they're terrified of amazon. is this about their response to that fear? is it all about amazon?

>> if you look at online retail sales in the u.k., the top in terms of traffic is amazon, tesco at number four, and that's basically saying amazon is winning the general merchandise battle out there, right, in online, so tesco obviously doesn't like that. in effect, you've got to be looking at tesco trying to knock amazon out of that number one position. importantly as well, in the grocery business, amazon has just launched fresh groceries in the stats. they're saying what happens when someone shops completely through amazon? david, your view? >> i completely agree. i think amazon is a big, big threat, particularly within general merchandise, and i think the great thing about the hudl tablet is that it links to tesco's own products and services, and as ross says, it's a way to sort of gain extra sales of tesco's additional products and services. >> maybe it is worth it. gentlemen, we'll leave it there. thank you very much indied. david ross, thank you for your time.

right, we're getting to the time where we quickly talk about what's coming up the rest of the day, rest of the weekend. rodrigo weller is in madrid to tell us about what's happening in brazil. hans nichol social security in paris. rodrigo, let me start with you. elections kicking off this weekend. the main candidates are clear. what is the polling telling us? what are we looking at going into this poll? >> hi, yeah, the latest poll came out yesterday. it was a poll that was published. it's pretty clear that they set -- they said the president will get into the second round quite comfortably, the big question is who will be the contender? a month ago, it was very clear that it would be marina. but yesterday's poll shows that she's statistically tied with neves. it's a big question who will be the second-place candidate, who will compete in the second round. >> ok, let's leave that there. we'll look forward to hearing the results on monday. hans nichols, what are we

getting today? >> well, today is the preliminary hearing. the question for john leahy, and this is an insider trading case that he was cleared of a couple of years back, but the important thing is he may be out of commission. for the three weeks of the duration of this trial, he may have to appear in court in person. that means the man, the legend, john leahy, who sold over 12,000 airplanes over a 20-year career, may be sidelined. remarkable story. it's really a taste for airbus of what could come after leahy, who's 65, how they're going to sell airplanes if and when john leahy is finally grounded, decides to retire. from what i understand, he's not the retiring type, not the golf type. selling airplanes is what he does. we'll see how airbus survives. >> this man lives on an airplane, let me tell you. sometimes he doesn't even book hotel rooms, he just gets off the airplane, has a meeting, gets back on, sleeps, goes wherever he's got to go next. clearly the other big story to

watch the rest of the day is the jobs number. that is a central focus at what is coming up next. "surveillance" is next right here on bloomberg television. have a great weekend. we'll see you monday. ♪

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>> this is "bloomberg surveillance." >> the government offices are closed in hong kong as protesters strengthen barricades. back, andpushed

moments ago student leaders called for calm. it is jobs day in america. we go in search of wage growth. and a half century mystery that is north korea's leadership. this is "bloomberg surveillance ." we are live from our world headquarters in new york. it is friday, october 3. i am tom keene. scarlet fu and adam johnson are with me. we start with equities. >> the first time in five days that hong kong has seen green on the screen, and their are the live shot -- and there are the live shots there is >> this is very dynamic. the last couple of minutes, some scuffles -- harbor, butoss the that has people's attention because up until now it has been fairly peaceful among the people of hong kong. face-off with police, but we have not seen that yet. >>