>> not taking the deal. rio tinto rejects the deal from glencore. samsung squeezed. smart phoneas the maker loses ground to apple and chinese rivals. ebola any europe. a spanish nurse is the first person to contract the virus outside of was africa. we will speak to the world health organization about the growing threat. christie good morning and you ." i am iing "the pulse

am guy johnson. .io saying no the world's second-biggest iron ore exporter has rejected an approach from glencore that would've crated the world's biggest miner. jesse, you guys have been working on this and watching it very carefully. >> he is a deal maker. he have done it through inquisitive deals over the past 15 or 20 years. he has been here for 10 years. in this instance, the big issue will come down to price was the what we know about glencore is they never overpay for anything. to get rio, it looks like it will have to be hostile now and would be a chunky premium. >> is it the last deal he will do at the glencore if he does this?

>> a good question. we know he is an ambitious guy. it will crate the world's largest mining company. perhaps, he is an ambitious guy and a deal maker and is the last one he could do at glencore. >> as i look at the lay of the land, it could honestly change it significantly. you kind of wonder how the people fit into the story as well. >> exactly. it would create an enormous company, brand and huge iron ore. that is clearly the attraction. >> the price of iron ore stinks. is it the bottom? >> that is the view. well seen the market collapse under the weight -- and we have seen the market's collapse under the weight. to expand.y expected >> why is it still and not another?

why this one? this one and not another? you cannot to get a bigger. if the glencore guess it is big, it struggles to do another megadeal. why this one? what is it about rio that is attractive? they will probably be cheaper. brio is still making huge markets. you are looking at $50 a ton. it is probably the best, if not the one of the best mining assets in the world in terms of profitability. significant hurdles to this deal of being done. at of the way the share prices have risen a this morning in rio, the market is making the assumption this is runs theon burke --

shelf that you get the market, you get the idea. is it what we are watching here? this is how he designed this? i am sure it came out. is a glencore happy you have done this? that is a good question. the answer is probably, no. look, it is clear that once it was rejected by rio, it is set in place and the start of a long and protected dance. -- >> the music had to start playing. >> it seemed to have started playing months ago. quite surprising about the number of people who would've been involved. >> a great reporting. we should mention that the chairman of bloomberg lp is also a nonexecutive director of glencore. we'll be talking about one of the guys running the numbers.

will be joining us later on and give us his take on whether this deal would happen, should happen. one-run top stories of the the morning. some song. the company is losing out. company is the losing doubtful some when you look at the market reaction, the assumption seems to be it is as bad as it gets. >> they are looking optimistically to the next quarter. will beave said it ugly. ugly to the tune of 60% down in sales. profits are heard at samsung. why? top andetition for the the bottom. apple on feeling bigger screens. -- unveiling bigger screens and that is where samsung always wpm on out. 'sey are selling less s5

because they are out to data. it does the prophet er -- profit insion we are seeing lowering the overall price is that you look noble and all of these new players in china coming up. eating them from the bottom as a wellparticularly -- as particularly in china. the glass is half a full for the fourth quarter and they told us they have new products. the note 4. that was after the eastern conferenceet. they spent a that up and introduce it in china earlier than planned to sneak ahead of apple and the note edge and you can read your messages at anet and goal because you are the wraparound screen. becausee you have

the wraparound screen. what you saw in the last peas was chips. this company, about 1/3 of its much of apple guess is chips from samsung and they are investing big. it wants to diversify and they hot.the competition is a how do they keep growing? look for your automated vehicles and chips driving your cars and pots and pans and thermal that and they want to provide those as well. >> quite scared about my pots and pans being smart. caroline hyde. analyst will be joining us in a few minutes to give us his take, is it as bad as it gets. become theurse has first person to contract ebola outside of was africa. the woman was part of the team

that visited a spanish priest who died from the virus. health officials said they are doing everything they can to contain the infection. our guest joins us from the world health organization. can i address what happened in spain? do we have any understanding of how this nurse, who should have by thelly protected protocols that would've been an place, ended up contracting the virus? >> good morning and thank you for inviting me. it is something to be looked at. be anill probably exhaustive investigation about how the person contracted the disease but what is important now is to do exactly what you said and how authorities will look into all context -- contact

this person had from the moment she developed symptoms. contained and is it is really beginning and it has happened luckily in senegal and it seems it has been done and the u.s. when you have a first case, you quickly identify all people living and colts contact -- close contact and monitor for 21 days and make sure these people do not develop symptoms and if they do, they are taking care of. the unitedident of states speaking yesterday and talking about the fact that other countries, not the united states needed to do more, needed to be better organized and have their protocols a little bit firmer to make sure that we do not get a spread. the u.s. can do so much and we can only do so much and others have to pick up. do you think the rest of the

world outside of was africa is as organized as they should be? >> we hope so that all countries by now have in place a contingency measure in case -- there is a person from -- with ebola coming to the soil. you are seeing that the transmission and all he those three countries, -- and only those three countries, liberia, sierra leone and guinea and they will be managed that in the outbreak is contained. we have to focus on helping those in three countries. if we do not contain the outbreak in those countries, we will always live with the risk of virus traveling to other places. is important that every country in the world have in place protocol and health workers are being prepared for the possibility and is still has

to be helping those three countries, who are really struggling right now to try to come to the end of the apple at -- ebola outbreak. >> you have come back in the fact the countries are struggling. how would you characterize what is happening there right now? and the possibility the situation becomes more controlled within an the next few weeks? there is a talk of vaccines coming soon, but not soon enough. where are we with could tame and strategies being applied? are really in a the middle of this outbreak. what i have seen is it there are a lot of people being affected and people in their homes and communities in affecting other people because we do not have enough beds or facilities,

sobered isolated these people and keep them with the necessary care. we are racing against time. we know what needs to be done. there are promising signs. we started extensive program of training health workers, so national health workers are toter prepared and equipped work in these centers. the u.s. has committed to work with us and the ministry of health of liberia to build additional treatment centers. in sierra leone, i have seen amenities organizing themselves a using community health centers as a holding place for people who might have ebola, so they do not stay home. response, but it is released burning in the community, so we have two [indiscernible] n. appealed to all member

states who can help and agencies to step up. >> thank you very much. joining us from the world health organization. while more from the story. -- we will have more from the store. else will we talk about? samsung having a bit of a stumble. they get squeezed by apple. we will look at the smartphone wars when we come back. ♪

>> welcome back. you are watching "the pulse." samsung posted is low was profits in at least five years. its lowest profits in at least five years. >> i do not agree. i think the quarter potentially with new products, it might go slightly but i do not see a long term+++

>> what hurts the most? >> they hurt equally as a much. there will still be treatment -- shipments and they will be the number one chipmaker and it is the profitability that's being squeezed. also the customer and the new keyboards you can get on ios and samsung act of premium end is falling away and the india and chinese companies a you have -- and you have xaoimi and it is eating up their market share. >> a big company can invest a lot in terms of new products. screen is really in iteration of a flexible screen. they could well produce a very flexible wristwatch or smartphone could well thrive and it could be very profitable, but i again, it is an arms race.

everything i am being told is the smartphone is the hub of all of the things we will where and it will live in my pocket. do i need to have the big flat screen and all of those sort of things? thet is becoming the hub, server for all of the devices i am wearing. >> that is the correct analogy. wristwatchld be a and anything. that is absolutely the way we are moving. it is something that competitors are making inroads. to be able to invest in all of these items and it is worth noting that they invested or acquired last year a platform to products to speak to each other at least in the home. samsung is thinking how they can create value and the internet era.

it is how they talk to each other and the real value for the customer. >> a lot of business. the p&l and they want to throw money at a lot of things. lookingom line is squeezed. it does not summit a great investment takes. marketing, the next couple of devices, they were have to do. it is not creating a premium brand about making sure they have the devices in the has of customers it is not a brand. it will really have to change. >> because they do not control ios? >> there is a huge disadvantage. there's nothing they can do. differentiate, you will monetize. we are seeing that. we have seen it in many markets before. >> is it a rerun of an old movie

with a new name? >> it always is. the same they will play out again and again. is worth keeping an mind of how things play out. it is true that apple were able to maintain and to play on the premier brands because they controlled the hardware and software. >> they needed to monetize? is it -- what is this? if i look at a model and work technologyrame, seems to get smaller and smaller. to moree subject exponential growth and you cannot always look to the past and saying it is the same timeframe. the technology has penetrated the market more than any technology before in existence of humanity. the next thing that comes along, the smart watch, whether it's a piece of clothing and it will

grow as fast. a case to say you needed to be ready to meet of the market at the bottom before it flies off the charts. chris and the destruction in between? >> samsung will suffer. >> lawrence, nice to see you. lawrence lundy joining us. --will speed to carlos slim we will speak to carlos slim, the world's second richest man. and we will talk to a chief economist. of me show you live pictures parliament. lawmakers are holding a hearing about the threat of ebola after a spanish and nurse was the first to contract it outside of was africa. we'll get more. ♪

>> good morning. welcome back. you are watching "the pulse." the markets. john farrell. >> thank you. we will charge wrapping things up. morning.en a busy

the ftse down by 0.6%. the dax in getting attention. more a week data out of germany. i will talk to me that. you abouttalk to that. rio tinto down by 7%. look at it today. over 5%.by glencore wants to merge with rio. rio rejected an approach in august. we are given the scope they are laying the groundwork for another deal next year. price of rio tinto in here, it will look like this on the year and iron ore like this on the air. a big iron ore producer and why does glencore want a slice of a producer of a commodity that has been crushed? bottomy is calling the -- this guy is calling the bottom of iron ore. elsewhere in fx land,

euro/dollar. back to the german data. production data down 4%. what is the similarity? both represent the biggest drop since 2009. the euro down by 0.3%. every body will look to the ecb to do more. dollar/yen. a little lower. the primus the shinzo abe is talking about the wiki yen hurting -- the weak yen hurting households and it is not recovered and the weakness. the weaker yen is not helping. i leave you with this. maybe we should be careful what we wish for. >> always careful what you wish for. of things common goal. ip data is about to come out and manufacturing data at 9:30. also carrying on talking about

the rio/glencore transaction. and have pual -- paul gaits we will talk to him next. ♪

>> welcome back. you're watching "the pulse." let's move on it. we will look at the pound reaction later. let's talk about the big story. when the top gainers, we now know the company rejected a murder -- merger back in august. it would have created the world's largest mining company. since then, radio silence. is the deal off the table? is just part of the game?

gates is on this potential deal. you think it is a winner? >> the logic is sound. it would create the most diversified mining company. offer the number one status in the industry and become the must own stock. world's best the inr business with the most sophisticated marketing trading business. you would end -- and the two glencore. it would create the must own mining stock. the rating potential is significant. the strategic changes that a manager like ivan glaze and berg would make. ivan has been adamant in the difficulties that the industry is facing. they are driven by supply-side issues that can be fixed. they just require a different approach to management.

is that it is more sophisticated. he is creating the cycle. of havingle point this consolidation in these industries as you can create the cycle. you are not a victim of extraneous forces that will sweep you along. you are master of your own fate. 300 -- 300ave million tons of iron ore in the market. on that kind of volume alone, you can dictate what happens to the iron requests. they have been shoveling the stuff. they are giving the stuff away for free. ivan says why are you doing this? this is not smart. take some of the extra volume off. look what happened with the indonesians when they imposed and or band. there was a 35% rally. they have created far more value than any extra tons of the

market would achieve. >> it makes you wonder why those managers are not drawing the same conclusion. >> there are three problems in the mining industry. there is too much iron ore. they don't know how to correct the assets are it why is that? if you take facebook of the world, what happens? nothing. how is the case that this company can be so cheap? how can a trade on five pounds. this is ridiculous. they are presenting a vision on how to change that. let's talk about ivan. target forted this himself almost. this is a transaction that he needs to pull off. he climbs to the top of the mountain. he has of the top of everest and looking out across.

there are no more mounds to cost -- conquer. >> this is like alexander weeping. this is a deal that is commensurate in scale with his ambition and sense of self. this is the deal that anglo american isn't. an enterprise value approaches to and $50 billion. anything else last of the mining space is going to be incremental. the only place you can look is in the going oil and gas industry. he's got the trading business in oil and gas. this represents the summit, the very peak of what is achievable. >> he is a deal maker. he is not some and best synonymous with being a manager. >> who was the guy who went to try and troubleshoot anaconda? people that the few

understands both the technicality of the mining business and also what that implies about value created in the marketing side of things. precedent about the danger in damage these massive aggressive technical risk projects actually encapsulate. the man that we see today. he understands valuations. him -- say this happens and there are a lot of moving parts to make this happen -- how long would it take him to do what he needs to do to crystallize the value in the real assets? rio assets. >> that moved faster than i think most people expected it

to. it was able to put some impression of synergy numbers out there within a space of six months or a year. i would expect to see changes from day one. have a 100 dayy plan in front of them if the deal were to go ahead. he would expect this to go through and the progress would be measured. i think we would be surprised at how quickly this would crystallize. this is in a mining context. we are talking about a couple of years in order to really see that pushed all the way through. >> are the chinese going to want to pay more for their iron ore? >> they have a conundrum. they sat on it and push the point -- price of iron ore

through the floor. they are upset with that position. they wanted more than that. let's put this in the table. he gives them some money. anyays that he doesn't have interest in these massive projects. he will gamble it will not be able to get this away in a country like any. you're going to try. the price will be higher over the intervening. while you try to do it. i won't subsidize your steel ambitions. if you wanted, go and do it. >> thank you very much. it was nice to see you. we should mention that the an executive director. rocket skates are the latest futuristic trend in urban travel. check this out. well they take off with consumers? we'll find out later on the

program. ♪

>> good morning. welcome back. you're watching "the pulse." business leaders are gathering each month to debate key issues and financial markets. asset managers will be to challenge the ubs house view. investment rocks

strategist. good morning. a lot of things are going on at the moment. a lot of geopolitical tensions that are very hard to map out an understand. banks are hard to understand. let's look at what you are taking to that meeting and the relevant things we should be thinking about right now. how concerned should i be about the next six months in europe? i've got deals on the floor. the curve is flattening down. i get a central bank that is looking incredibly hemmed in. i have politicians that don't seem to have a grip on what to do next. this is a great cocktail. expectations are low in terms of european growth. the german numbers set that

pattern. , youthe next six months may need a microscope to do it, we will see marginally better economic trends in europe area we know that the housing firm in france picked up in the last month or two. temporary employment numbers are up in the zone. goods in belgium tend to be a lead factor. they've shown a bit of a pickup. this is not victory. but it is not a continuing defeat. priced in europe. we understand europe. is that right? i have said that things will improve a little bit. , the impact on the

economy is minimal. we are focusing on the dollar. the euro and yen hardly changed. terribly it is not a price sensitive vein as far as currency goes. 129 is better than 139. cheering.rt, they are they are worried about every tick up. it is a market event. >> how should i worry about your? this is a bit of an old question. we understand the dynamics of what is going on. that there is a little bit of market reaction and it will be interesting to see ultimately if yields get dragged even lower.

i am wondering how i should think about it. >> this is a very long haul. with the demographics and the labor situation, all of that kind of stuff. it is going to take a long time. spain, we were writing off a couple of years ago, has done a lot of good things. the economy is not too bad. the lack of action to address structural issues that is the slow strangulation that we are concerned about. in that category i would put germany's fiscal status. they spend a lot of money over .he last 25 years in the east the infrastructure in the west is beginning to wear a little bit. --s is something that if the >> does that have a ripple effect? it is.epends on how big

the objection that merkel had to bailing out the rest of europe was understandable. moreot sure that i take on fiscal risk. >> you can borrow and a tenure basis at less than 1%. >> this is where you should be leveraging up to do that. i don't understand the political barrier to that. -- which area, if you look around the world, where is the area when i look at the views,ution curve of where are we most undecided about how outcomes develop? >> people are always undecided about china. will it collapsed? will it not collapse? it is taking a long time to collapse. it's got massive reserves. i don't imagine that they are

it without making an intelligent assessment. there demand for run materials will continue to grow. economy -- >> the model where it over borrowed and under delivered is still much in place. it is a slow slow down rather than a dramatic one. that is where it exists. what about deficits? seem tooncerned as some be about areas of over leverage? some of the credit guys are nervous. strength in the high-yield market has everything less attractive stocks that have come before.

in september, there was a big calendar that was a bit lumpy for supply. i think that is a small cloud. it takesvery well that two to three years for this to go bad. rate starts to ineriorate on september 2017, it is a long way out. it is more of a valuation issue. to look starting moderately attractive again in a equalshere low growth low terminal bond yields. bond deals mean there is still a search for yield. above, it is or

beginning to be attractive again on a price point. >> i am looking for bank for buck? india? >> great idea. it is not going to be a straight line. it is all about reform. we call it under new management. they are under pressure to deliver. we have had a lot of promise. we will see in the winter session a number of reform measures coming through. inflation seems to be getting under control. can contemplate a rate cut in the first quarter of next year. this is a cyclical pickup in business. a lot was held back by the election. high.aluation is not that -- earnings growth is 20%. there are challenges. they have to recapture the public banking sector. fundamental reforms to

get through. it won't all get done. of itlong as a big chunk gets done, it is a win. >> it's now the 10th largest stock market in the world. the wind is behind it. they're going to be bumps along the way. those are opportunities. >> thank you very much indeed for your time. still to come, we are going to speak to a waste disposal company. ♪

>> good morning. welcome back. you're watching "the pulse." they are converting unused food into renewable electricity. thenext step is expanding digestion does this. ianing us for more is weakland. he is the ceo. we talked about this. it is an interesting technology. it generates power. the supermarkets get off the grid. , one at youhas been

build a big one of these somewhere and hook it up? it is a nice idea and you could do that. the problem is what you generate electricity into the international grid, there is a huge loss in power through transmission. up and down the country through the grid. you lose power. the perfect scenario is to have a user of the power close to the generator. then you can put a direct line in to the store and there is no loss of energy in transmission. we would love to do more of this. food is incredibly rich in entity -- energy value. the technology is proven. it is fundamentally a very clever thing. we create gas and make electricity. it is a great business. >> what be the target?

>> it is 15 million tons of food waste generated every year. it is a norm us. our plants are 120,000 tons. it is relatively small in comparison to the scale. >> there is a bit of a price war going on, how expensive is this? this might effective balance sheets. is there a smarter way to finance them? >> they are expensive. this is a very sophisticated cap stomach. the price of power will increase in coming years. a generation of bio electricity from this is cheaper

fundamentally than buying direct from the grid. there is a saving for the consumer. >> we see your tracks everywhere. they are transporting the stuff, it is pretty heavy. that sounds like a lot of stuff to move around. >> that is the reason why you just can't build an enormous facility. the cost of moving food and waste around the u.k. is expensive. it is not great for the environment. is bettercilities than the very large facilities. we generate a lot of power already. there is waste and energy. it is made of recyclable material and high-energy. are invested in more facilities to generate more power from waste. you're going to have to

rethink your business. thank you for stopping by. for those listing on bloomberg radio, the second hour of "the pulse" is coming up. we have the first case of ebola in europe. that happened in spain. global the head of health security. we will talk about how this happened. there is a hearing taking place talking about that very question. we are going to try to get some answers. all of that is coming up in the next hour. if you want to follow me on twitter, please do. adding to this.

she will be back on monday. the second hour ♪ is up in a couple of minutes.

>> this would have created the world's largest minor. er.min samsung is squeezed. it loses ground to apple and chinese rivals. good morning. good evening to those of you in asia. good morning to those waking up

in the united states. this is "the pulse." we are here in london. today, we ares going to see rocket skates. this could be the future of urban travel. it looks like fun. let's look at the top story. into has rejected a merger. is reallyrsation interested in. there are so moving parts between glencore and rio and the chinese. this is an amazing mix of politics that we need to focus on. the middle of in this. what is his game plan? this is change the game plan somewhat. july,proach from rio in

they came back in august and rejected that approach. a are now at the start of takeover now that is public. they will be able to speak to shareholders about it. they can gauge some interest from shareholders and support for the deal. >> didn't need to get public at some point? >> once they rejected it, yes, it had to. they want to do something on a friendly races. we know that glencore hates to pay big premiums for their transactions. they have done a $60 billion in deals in the last 10 years. ivan hates to overpay. >> he's got a bit of skin in the game. we talked to one of the finest analyst out there, we have been talking about this the bottom of

the iron ore cycle and he said no. he is going to create the cycle. they are turning some of the stuff out of the ground in selling it for free. he is going to control the supply side and change the cycle and make it more expensive. that is huge reason for doing this deal. you want to know how much money you can extract from this business. if he could lift the price, what does it mean to the bottom line question >> we are talking about billions of dollars. this is at a five year low. we are looking at 300 million tons of year. they have more discipline in the way that they allocate.

this is shared by a lot of people on the market. they control it. they have created this global glut. a lot of investors are unhappy about that. the chinese going to be more culpable paying more for their iron ore? >> that is the big question. that is why you see in our polling yesterday that they have been quick to go to support. it is going to be a tough sell to the chinese. >> thank you very much indeed. let us move on. we are going to move your -- madrid. a spanish nurse is the first person to contract ebola. priest ineated a africa.

they are doing everything they can to contain the infection. our spanishin bureau chief. this was meant to be a specialized facility. it was meant to have protocols to avoid this. the big question is how did it happen? that is the big question. we don't have any clear answers to that yet. important forvery these facilities to maintain safety procedures. those procedures may have failed. we have heard some health officials talking this morning saying that the patient is stable. she is not at any risk. any risk to her life. this is a very serious illness. they can't rule out the possibility of further infection. >> let's talk about that risk

and what protocols in place to make sure that doesn't happen? they are attempting to trace all the people with whom she has had contact. this team that was treating this spanish priest who died in september. he died in madrid. she took some time off. they are trying to track down people who would've that any contact with her. her husband has been put in isolation. to the been moved hospital herself this morning. >> what do we know about her? she is in her early 40's. she is from the northwest of spain. that, she wasthan part of this team of 30 people there were treating the spanish

priest. that is information we have about her so far. >> in terms of the reaction in spain to this, are people talking about this turning into something more significant? is this viewed as an isolated case, something that will develop further? the familye that members of put in isolation. does it go for the map? -- does it go further than that? >> we do not have enough information to make that judgment yet. this is a severe test of spanish procedures. learn how effective the spanish protocols are in terms of containing this infection. >> thank you for your views.

we have the latest on that story. we will watch it very carefully throughout the morning. we are going to move on and talk about samsung. is this the bottom? can the largest smartphone maker fight back? all of that will be discussed when we come back. ♪

>> good morning. welcome back. we're live in bloombergs european headquarters. samsung is slumping. caroline hyde is here. this was not a good quarter. >> and ugly quarter, but people were braced for it. sales were down 20%. rise in thents did third quarter. they did see sales of their phones going relatively strong. is problem is the margins being eroded. they're having to spend more on marketing and lower the price points of their phones. they've got competition from the top with apple launching the iphone 6. that is where samsung had dominated. top.ou've got apple at the

nov up behind is no flow -- and the cheaper price points feared their very popular in china and india. samsung is number four in china. they are seen competition. they do make televisions. for rival phones did not sell as well. s5 has been slowing down. the shares are down 15% year to date. there is a focus on next quarter. they have new phones coming quartered. -- forward. earlier ining out china. that will sell well in the fourth quarter. edge.e got the note

that seems to be lined up to do relatively well. the push now is into chips. they are spending $15 billion on eight chip lantern south korea. is that where the growth is for the future? everybody wants the next flagship phone to really put apple up to the test. >> let's get more on this. the market is up. the signal seems to be the glass is half-full. is this a low point? >> probably. we are coming up on the christmas season and their new products coming up. -- has been some benefit from the currency. it would not be surprising if they had better fourth-quarter results. when we get to this time next year, not only could we see greater exports from chinese

xiaomi, weers like are looking at increasing competition from sony. they have just signed to contracts in the states. year, if apple can repeat the hype over the iphone six for the iphone 6 s. >> samsung does not control its operating system. no we can compete with apple because apple has the operating system. thing.n't have the same had a samsung deal with that? >> there are two ways. the first is to come up with her own operating system. they are getting very poor feedback. which is whytion

don't they buy the microsoft consumer electronics business. they would get windows for the mobile and they would get video games. they are interested in video games. they think there is an interesting option there for them. >> they have made a lot of noise about the internet, they can have margins like this. is we are talking about the google android operating system being behind the internet of things. it is being provided by a third party. had a samsung break into the profit chain of that? >> none of the sounds good. >> the one area they are doing well in is semi-conductors. if you don't strip away the mobile side from the physical

business, that is the problem. hugee market cap is other semi-conductor companies. this is the basic problem. long-term outlook, evaluations struggle. is becomingle phone your professional server. all of these other devices we will wear is attached to it. it is going to live in my pocket. care if it haso a large or big screen. how much of that is going to matter? routeyou go down the where we are more voice --ented, the screen he comes

-- you just talk to yourself. youproblem with that is have smaller screens per you may not need high definition screens. you are taking it away from their core profitability. that is a terrible line to go down. that is an area that is quite plausible. >> we have got a change at the top coming in samsung. , ifwill the new management you are coming in and looking to run the business, how you do it? >> you have to look at the cost you are putting into the handsets. the quickest way to resolve this is to take cost out of the equation. revenues aren't bad. there are two ways to do this. deal with suppliers.

they may have to go back to lcd for screens. they are quite a bit cheaper. there is savings to be made there. they are going to have to look at more of these startups. they are going to have to go to cambridge and fine companies that are not doing business with apple and say we want you on our side. >> a lot of things to do. thank you very much indeed. we are going to take a break. we have plenty more coming up there and i want to talk about the currency markets. we have commentary from australia overnight. it seems to be that the australian currency is even cheaper. it will be even cheaper from here. the economy is going to migrate away from robert cereals. today we are trading at 8787.

this may not be the if the australians are looking for. we are going to talk about what is going on in tel aviv. the stock exchange is in focus when we come back. ♪

>> good morning. welcome back. we are live on bloomberg tv. we are on bloomberg.com.

and we have aon special interview. >> it is nice to be back. when it comes to stocks, they don't consider israel european enough. this makes things tough. great to have you with us. you been on the job since april. trading volumes hit a five-year low. how is it going to pick up question mark >> it is not just the volume of trade. our major effort is to increase number of companies that trade in tel aviv or increase number

of shares. this will affect the volume of trade. the volume itself is not the point. how many companies we could bring to the stock exchange in the next two or three years. >> we will come back to that in a minute. the drop in volume is largely traded to israel being upgraded. they are not being incorporated an benchmark. israelrs say they don't to be part of the european investment basket. that is the mains tumbling block and how far along the way are you to persuading them otherwise? >> i don't know. what we are doing is working very hard to find the right channels to convince the decision-makers that we will europe and we think we belong to this place. all of our economic philosophy

in trade and export is to the european market. that is why it is important for us to be part of this market. >> you are doing other things to do more european. you are promoting the index features that are traded on your ex. how persuasive are these moves likely to be? >> i think this is an effort to show we are part of the world. the reason we change the days and try to create more derivative and product that we can bring to the market. today, the markets are open. they are not closed. this is done only in israel. a lot of companies are traded in new york. a lot of companies are coming to israel. we have to do the best we can to be part of the world.

>> if they say no again, was plan b? >> we don't have a plan b. we have to convince them. this is plan b. best that we the can to show them and convince them that we are part of this world. it is good for them and good for us. us.s not just for it is a win-win situation. discussing this, getting israeli stocks listed in new york but not listed in tel aviv to trade in tel aviv. how far away are we from that happening? a little bit more. this is a process. drafteady wrote the first all of the points we need to go through. icc.ve to convince our

we need to convince them. i think it takes a few months more before we have the final decision. i have reason to believe that we we work approval before on it. time, we willrs see 100 more companies on tel aviv. >> absolutely. in five years i hope to do more. 100 is the minimum. then we went to volume -- double the volume. >> we list you -- wish you the best of luck with that. this the first interview since you became chairman. i will head back to you. the next time i see you i will be from tel aviv. >> that is really and stuff. great interview. news -- come, good could these wheels be the

transportation of future? we will talk about this later in the hour. we have big interviews later today. we will talk to the world's second richest man. ♪

>> welcome back. you're watching "the pulse." we are here in london. i'm guy johnson. these the top headlines. a nurse in madrid is the first person to contract ebola out side of africa. the government is fixe investigating. obama says stopping the spread of this virus is a top national security priority. he has had enough of french

testing -- bashing. he spoke with francine lacqua. >> i want our economy to become number one again in europe. i want people to talk differently about france. i have had enough of french dashing. france has problems. we have enough strength to say yes, france is here and moving. it is back in undergoing reforms. mitt romney is speaking out about the obama administration. he spoke to us on the first episode of bloombergs new show. administrationma is a foreign-policy disaster. >> this is well understood. the president wasn't right about isis.

he wasn't right with regards to iraq. he wasn't right in syria. he was not right in regards to russia. let's go to the markets. this is down across the board. this is down by 0.9%. i will get to that in a minute. by one 7/10 of 1%. the big corporate story is right here. it is rio pinto. ae news is that they rejected merger proposal in august. bloomberg has the scoop. they are laying the groundwork for another approach for rio tinto next year. i wonder if they can pull off this deal. look at the trajectory of iron ore. it has gotten hammered this

year. be thatage seems to they are calling the bottom and iron or. we are talking about german data. industrial production is down by 4%. the biggest drop off since 2009. by oneollar is down third. if people ask more for helping to generate inflation. you have seen them do enough. look at the end. look at the japanese yen. let's put this over 24 months. here is the move. this is the yen getting weaker. here we are two years later. this is the message. the weaker yen is hurting households.

they are talking about weakness and exports. when you turn to the ecb and ask for more, maybe there is a case study in dollar yen and the bank of japan. it is a very insulated economy. a lot of the demand is created internally. you don't get the bank for your ink in the way the you would a more open economy. this leads us nicely into what is coming up next. keene is in new york for us. you have some big heavies on the program today. you're going to be talking about the global economy. >> we will look at the global economy with professor spence. he lives in italy for a good part of the year. stunningpence on the back to back two days in a row week news out of germany. they put it right on their website.

germany is in recession. we will talk to professor spence about that. jeffrey sachs will join us from columbia university. ebola. be talking about we have news out of spain. we will talk about american income inequality. we want to dovetail the schedules and get them on air at the same time. i can't promise we can make that happen. tot would be really special have them on the same time. we will try to do that in our 7:00 hour. >> i will tune in. thank you very much indeed. we have some great guests and we will be talking about the world's second richest man. he is going to be joining bloomberg. speak to the chief economist. it will be interesting to get his take on what is going on in

the u.k. right now. what islk about happening in the telecom space. news.e heard a lot of m&a let's get another m&a story. to owner of lt's is trying snap up portugal telecom. what is it always involve brazil these days? please expand to me what is going on. >> it is a little bit tricky. you have to listen to all of this and not get totally mixed up. altice has operations in portable that's portugal. they want to buy it. portugal problem is telecom is merging with a brazilian company. that is quite advanced. what has slowed it down is the revelation that portugal telecom

had some commercial paper. are you still with me? ill-fated portuguese bank. that has turned a spanner into that merger. they are trying to take advantage of this instability and grab portugal telecom. where would that leave them? >> that is another very good question. we are going to get consolidation in the brazilian mobile space. there are four carriers. that is going to end up being three. they might be in a better telecom to merge with italia. what really gets me about this is once again i am talking about a telecom deal and it involves brazil. what is it about brazil at the moment?

everybody is processed -- obsessed with brazil. are a place where we can get a deal. everybody is looking at buying everyone effectively. one iteration will happen. we have seen them spend a lot of money. for all the problems in the brazilian economy, it is a big and important country. there is a lot of growth in the telecom business. you may as well look for it in result. that is driving some of this investment. >> you guys had fun over the last couple of days. last few months look like? >> it is busy. this is the season of crazy. every big deal is being conceived of. that is just how it seems. we are talking about glencore and it rio. tomorrow we could be talking about something else.

we are seeing some eye watering deals in the pharmacy's. -- pharma space. interest late's -- rates are low. the smart money seems to be on these big transactions. >> is there a deadline coming up the we to think about in terms of getting something done? these guys want to get out in front of something. >> a rate hike is very important. there is a sense of urgency. interest rates not going to stay low forever. if you're a chief exact looking it, you many to get this done before the interest rates move away. >> that is why we talk so much about the macro stuff. matt campbell. let's go from telecom to tech and startups. they are in a race to develop the next great mode of transportation. one california cap re-think

electronic footwear is the future of urban travel. we met the cofounder of rocket skates. rocket skates are electric skates. we want to make it so that you become your transportation. ultimately, what we are shooting for is something you can wear all day and never take off. you can wear pretty much any shoe with the skate. you can turn on either one first heard it doesn't matter which. then you press your control safety. the ground as a once you role, the motors kick in. it is around wanted to miles per hour. we have motors in each of the larger wheels. we have lithium ion batteries.

those give the motors power. they have bluetooth. we have apps that allow you to control the performance and watch what your friends are doing. are very inspired by automotive sources. wheels are designed with that car in mind. kick starter we did, we asked for $50,000. we ended up with $550,000. that was outrageous. we have sold over 1000 skates so far. to prices range from 500 $700. it takes a long time to get to a product that people can actually use. you can let them go and they can take off with it. >> how do you break?

that's what i want to know. going forward is no problem at all. stopping looks quite interesting. is a pretty car. they did not sell many. the did not make any. that is an interesting guide to the future. leave off the rocket skates. we'll be back in a couple of minutes. ♪

>> good morning. welcome back. you're watching "the pulse." nurse has become the first person to contract ebola outside of west africa. aftersted positive treating a priest to died from the virus. we are talking to the head of the global health security. let's talk about the spanish situation. happeningn is what is in spain. any sense or understanding of how a nurse who is trained in specialized in treating diseases such as these ended up contracting it? it will never probably be understood how she became infected. there was some breach in the protocol are some difficulty

with the protective equipment and she got infected. if you think back to the sars outbreak in 2003, health workers are being infected in singapore and hong kong despite excellent protective equipment. these things happen unfortunately. >> how worried should that make us? this has a different vector. there are different ways of this being communicated, does the public have a right to be concerned? >> health workers are at the greatest risk. they are on the front line. the spanish public should be less worried because there is excellent public health in spain. systems andcellent they are putting the contacts under surveillance. if they develop fever they will be immediately tested. if it is ebola they will be isolated. they can take care of this in european countries. >> this is a concern.

you don't want panic. the president was talking about screening passengers he four and after their journeys. when i heard that i struggled to understand how that would work in practice. this takes a long time. many times there is a reaction. this is not the case. inspections -- infections can cross borders in the incubation phase. they can cross borders at non-border places. setting up border protection measures is a false security. able to issue is been detect rapidly and respond to a disease when it is identified. that is what is occurring in north america and europe. there will be a better history taken of people who have a fever who have come from africa. >> the lessons are being

learned. we do have protocols in place. there are a few lessons we need to be learning at the beginning of this process. learned will be a chelated overtime and added to the next protocol. >> that is what is happening in europe. and you view the situation in west africa, as you look at how the situation is evolving, how close are we to getting a grip on the situation? >> it is a very difficult situation. in all cases in the past, ebola has been stopped when it is in rural areas. it emerges from some animal to humans. it causes an outbreak. there is excellent committee organization. the whole system can help stop the outbreak when it occurs in a rural area. in urban areas, that system is

broken down and there is a increase in population density. it is more difficult to control. to thes listening nigerian finance minister, they are concerned that people won't visit the region as a result of what is happening. for those that want to do business in west africa, should they be put off by what is happening? effect?have a long-term >> there is a direct economic impact. it has closed all kinds of multinational businesses. this will affect the supply chain and business outside of africa. affecting tourism. people are making irrational decisions not to travel to east africa. these will continue.

the situations. what is important is for the outbreak to be stopped. once it is stopped it is important to rebuild the infrastructure. >> is this going to be something that is part and parcel of life in west africa? can it be eradicated? can vaccinations deal with this in the future? are they going to have over this for some time? >> this the first outbreak of ebola we have seen in an urban area. normally, it disappears after all cases have been found in isolated. it does not continue. hopefully they'll be the case this time. there is no reason to believe it is -- it won't be. >> thank you very much indeed for coming to see us. etiquette to some company does.

the eu is going to investigate amazon. into if theying collected illegal state subsidies for 10 years. chipmakingsume units. negotiation's broke down in july wanted to take over the business. ibm is offering more. its biggestosted drop since 2009. they lost ground to apple at the high-end and the chinese at the low end. we are going to take a break and see you in a couple of minutes. ♪

>> welcome back. we are live on bloomberg tv. we are on the currency markets. it is going down a little bit. if you look at the one-month chart, there is more duration and you will see a decline versus the u.s. dollar.

that is not enough to satisfy the reserve bank of us trillion. they would like to see more. the exchange rate has declined recently. the dollar is strong. with declines in certain commodities. will take the economy away from rum a terrier one of the ways they will do that is the currency. we will look for a little bit more of a drop. thank you for watching. watching.going to be the imf is coming out with their report later today. we have an interview. what are they trying to do? they are trying to push for a slowdown in china. if you look at the german data out today, we can look at this

economic outlook is going to look like. industrial production is down 5.4%. this does not look good. we get another reading in november for german gdp. people are talking about that very seriously. we can look at this in context of the bank of england. we will talk about the brain -- bank of england. >> he doesn't want to talk about it. >> they have made some mistakes. this slowdown in europe should be taken very seriously. he is worth $81 billion. we'll get his take on what is happening with the emanate storytelling --. that is it for "the pulse.

"surveillance" is up next. if you want to follow me on twitter, i am on it. see you tomorrow. ♪ .

is europe into recession? there is chaos in the mining industry. to cut costs.

-- gianni's, not carnations. good morning, this is "bloomberg surveillance." we are live from our world headquarters in new york. it is tuesday, october 7, i am tom keene. joining me, olivia sterns and adam johnson. >> overnight, german industrial output drops the most since 2009. that is a key point because that is the exact same headline i effectively conveyed yesterday morning. >> it contracted -- >> like gurus and experts could overcome by events. you wonder where this leads to a november and december. >> in japan, it leads to more stimulus because that is item number two. bank of japan