>> the french finance minister said your rep stagnation it chronic. become going to dutch. -- going dutch. an exclusive interview. cruising. trading on the new york stock exchange. later, we will speak to the ceo and chairman. ♪

>> good morning. you are watching "the pulse." i am guy johnson. what we have coming up for you? not seeing eye to eye with shares, they are slumping. thesecond to see up -- second ceo in a couple of months. let's talk about the global stock market. about the big picture. oil down again. stocks selling off. there were talks and maybe we will get it and that is not ? ppening, is it >> not right now. it is down 1% on the dax. are 33 points lower. these are big, big losses. let us see how the day pans out.

the problem is most of them will not be in today. equity markets are closed. but markets close. -- bond markets close. we will wait and see how the day pans out. last week, with had a shift in the debate. the debate and conversation is from the about the prospects of european recession and inability to address that. >> let's move on. we will talk about france. the french a budget -- the meeting today. will see a bit of fireworks. thank you very much indeed. let's talk about what is going on and france. the french finance minister said franciss deficit -- deficit -- france's deficit could not and should not be reduced. >> sometimes we can go faster

ball right now and this period, growth half the pace of expected for everyone with an inflation compared to everybody and we cannot have the same rhythm to reduce our deficits. financewas the french minister speaking to bloomberg about france's budget policies to our next guest said it is on its last leg. chair of thermer largest union of employer in france. we will, what she does next and little later. good morning to you. said it was as bad as 2008, would you agree with that right now? yes.ll, the eurozone situation is very serious. sliding in a trap

and we have to be very cautious in of the way we manage and this is france but all in eurozone globally. question?sk you a you are talking about a very bad situation. , which was a catastrophe for the global economy. has never really recovered. france has never really recovered. are we in a situation where one with a-- we end up chronic situation for growth? >> yes. of course, 2008 was global prices coming from the u.s. subprime crisis. now, it is quite different. lack basically due to the

of harmonization of european economic governance. but the situation isn't strong up front. it is coming from far away. 2008, it is just a lack of structural reform over the past 20 years. now the situation is very serious. of course and france, web a lack of competition in business -- and we have a lack of competition and i high level of unemployment and we have to fix that. we have to fix that in the same time including the global european situation, which is not very good either. >> yeah, it is hard to do economic reform when the

backdrop is so bad. the french budget is likely to be the subject of a great deal andttention as leaders meet luxembourg. given what is going on and what is happening in the battle drop, the lack of growth in europe and around the world, should france be able to break the rules? >> it is a very difficult question. to reduce thehave deficit. of course, weft to public spending and increase our competitiveness. and the prime minister is very pro-business. time, if we do it, in a very radical way, i would be afraid of increasing the worst part of the situation. so i think we have to be very

trading --not triggering prices in europe. effort,to make clear brussels and berlin also have to toerstand that if we go dramatically and structural reform, it could put also the veryh society in a difficult situation. we have to be careful. to best thing to do would be half of that kind of commitment surplus, have a budget we will put to the surf was -- we will put this surplus and reducing the deficit. >> what you are saying is france

should be able to break of the rules because if residents not, if republic is at risk -- france or does not, the republic is at risk? that is not only france will be at risk of but all of europe would be at risk. not really breaking rules but the accommodation. once again, i have to insist on that. all of the eurozone is on the edge of the [indiscernible] this is very serious, very dangerous. insist with drastic cuts in the budget, i am not sure that would be good for global growth. i am pretty sure it would be the opposite of it will worsen the situation.

>> is a problem any europe right now in germany and the inability or lack of desire to generate demand? is that the problem we face right now? of the problem. of course, germany has the great surplus because of the ability to have a great exposure. we have to understand this boomn surplus comes from a which is pro-germany and pro-europe. lacking is an investment in germany. we are lacking of investment and europe. -- in europe. i would appreciate that berlin would be less focused on austerity. >> just a one final question.

questions. one, are we in a situation where -- and these two stand out of the way and let others do their job? is france under new management? does france need to be under new management? >> i think it is a new management. el, we have a social democrat approach. very much pro-business approach. everybody including the government and maybe the it a strategicde error when they decided to increase taxes. and now, we have to be very to support this government.

even if you are from the right or the left of the left, it is all national interest to have this government. one final question. everybody is wondering what you are going to be doing next. france is under new management. any particular french companies under management in the near future? [laughter] know, from the week iers that said last would be the ceo of a big french electricity company. whichs a decision, belongs to the french president, hollande. i am in the currency. the current ceo is a great ceo.

i know that energy is key for f rance. realize the european strategy for energy and i know we can do that. that is why i am interested. we will see. >> we will see and we look forward to hearing from you on that. laurence parisot, former chair of medef. ackerman goes dutch for his company. an exclusive interview. see you in a moment. ♪

>> good morning. welcome back. we are watching "the pulse." time for another exclusive. bill ackerman starts trading, have started trading in amsterdam. cherries a little lower. -- shares are a little lower. hans nichols. >> and are joined by bill ackman. your company is a listed on the exchange and will ask you why europe, but first question, when you rang in the dong, back end or forehand? >> back end.

it was a big moment. >> why amsterdam? >> in the u.s., you cannot list a company that offers a security insensitive. -- incentive. as a result, weft to be an offshore entity. our choice were amsterdam and london. market andthere is a want to be in a major part of the exchange and will be the 25th largest. people will look at us as a real company and will benefit liquidity. now a youe $6 billion will going to ship in spring before college and can spend and one plays only. >> the capital gets repopulated among all of the funds. with a $2 billion in capital. -- we have $18 billion in capital. a new investment we will

announce the next 45-60 days in the capital will go for the new investment. >> a us-based company? >> a us-based company. >> can you give me a hand? >> no. >> and offering speech about 16 crybaby shareholders. do you think of yourself as a crybaby shareholder? >> no. the reference was to the fact that the governess was something top of mind for many corporations and it has become top of my for shareholder activist and being more engaged in the businesses they own. >> i am glad you brought up things like icahn. in some ways you are differences to you stay in for the long haul. >> we do not even called them trades. we call them in investments. we are not berkshire hathaway,

but not a bad this is a model. invest in public markets but will buy a large stake. to match theus duration. >> you think of yourself more like a warren buffett? >> i think that is a better choice. i am freely with mr. icahn, but we are more like berkshire hathaway. >> what is your definition of an activist? somebody who states to the very end? >> it not necessarily related to duration. that is what we like about what we do because we buy a large minority stake and will work with the management team and board and shareholders and make the changes and we will get it the benefit of that and our typical holding period is five or six years.

most of the capital and these large companies and as a result, shareholders have little input over the companies they invest in. because we are a lead shareholder, we can create changes sometimes bore changes. and all of the shareholders' benefit. we do all of the work. we guess a part of by the large and small shareholders. >> you mentioned directors. how is it going and securing a meeting with the directors? >> we have never met the directors. they have not been willing to meet with us. there are serious governance issues. but ultimately, we will get to the right answer. we are leading the charge. it will take place december 18. and a new board will be installed at that day. uncertainty ifal you will them to vote or not. >> that is very remote

consequence and will be several by the court by the end of the month and well before december 18. >> and terms of new price and offer, will you have a new wood before the december meeting? >> at that is something we will announce when we announce it. what needs look at to change at the competent, due to a new slate of directors or a few? >> we do not think the current board has managed this well and we have made a four offer for the company, what it does not mean they have to sell at that price. they are prepared to raise their offer. there are suggestions that the increase could be immaterial inquiries, but asked the engagement and done due diligence. and we think there's been talk into the press about activists and potential interest and company and we think it is time to explore opportunities.

today it is a $190 stock. they can only be justified in and sold tomerged someone else and with the the process will start soon. >> where do we stand? >> actually, the most significant development may be venezuela. you see a company with the exchange rate of venezuela is 10 3:1. herbalife has been marketing as 10:1. things are 90% worse. what people do not realize is venezuela even though it is percent revenue as they is -- we within 20% think 20% is -- their earnings can decline. we will see what they do.

the market is really 103:1. even the official market is 50:1 . how can they be booking the revenue? >> are you about equal? below stock is about 10% on the precise cancellations was a at a minimum, closer to being on the money. -- on the precise calculation. -- at a minimum, close to be on the money. >> when you look at the relevance is, -- we look at to business, is a hunt or be hunted? >> a lot of a can be dealt with the mergers that are procompetitive and one of the interesting about pershing is

that the stock trades 6 hours earlier than the u.s. is change. -- exchange. ism told early trading something i 6% or 7% of the markets is a there's very little volume. and a most pershing would percent of our capital is in pacific. people should be will to invest in pershing. an interesting element here heldse we are european entity. it will be interesting. >> it is going to become an and ask for some the companies? >> in a way. it is a pretty injured to entity. though -- the all the people who typically invested in pershing

were wealthy people. now anybody in the world can invest. the economic terms are much more a tractive and the terms for private investors. n terms forve i private investors. people have a piece of our economic interest. >> what are they getting the aps off? >> they are getting a he's off of the -- piece of the pershing square team. i get a lot of the disability. the word is being done by a very talented investment team and legal team. it is a big operation. this kind of strategy requires a lot more -- >> pershing square can exist without bill ackman? >> i think that is true.

if you look at a long like scott ferguson -- alumni like scott ferguson and people who have left pershing, a senior member who has been with us longer than scott and mickey can leave. i do not plan on going anywhere. we built pershing that says if i was to disappear, shareholders could vote to go to the entity and i think their vote would be a favorable vote. it is been a good place to us capitol for the past 11 years. the benefits of being public and we want to be here -- the exchange has been here for 415 years and we want to be here for >> where00 years to are we with a fannie and freddie? >> we bought a lot more fannie and freddie stocks. adverser so since the

decision. >> how much is a lot? >> we increased by about 20%. on ours some restriction ability to buy more stock. we think there's going to be a good investment. but what is injured in with the court's this -- but what is interesting with the court's decision, his arguments were principally the government is not allowed to take private property without justification. a beneficial interest that was not taken for that the judge decided that the stock traded on the market and large by you and shareholders there continue to have a meaning economic interest. >> we are at a hard work. we did hear there's a key man provision. i will make sure bill ackerman does not -- ackman does not

step into -- it is a dangerous city. >> good work. we will take a break. we'll be back in a minute. ♪

>> good morning. welcome back. you're watching "the pulse their co we are it bloomberg headquarters. this was a massive day for the markets. that is the dip. are we going to buy it? there might be some early signs that is beginning to happen. can just see it to the right hand side of that chart did there is a little bit of a pickup. we are off the floor. people are starting to bottom fish a little bit here.

they're starting to pick up some of those european stocks of the ben battered over the last few sessions. u.s. s a holiday in the it you may not be able to get the volume you are looking for. these are some of the contracts. we are getting some interesting levels. 8817 is where we are trading. that is not giving us a clue that we are going to continue this. this is been a commodity that has been a leading. they are been the canary in the coal mine telling us what is going to happen. , this is still the breakdown of the individual markets to show you what is happening. is in positive territory. others are coming up as well. now we are starting to get it back a little bit.

people are starting to buy back. is's show you what happening. this is the picture around europe. these are some fairly bleak messages. focus is going to be the french budget. where the oaw you tees are. european bonds are coming back unchanged as we speak. that is the bond market story. that is the commodity market story. let's talk about the headlines we are watching as well. shares are trading down for the most in six years. this is a brutal morning for the luxury i maker. they meet to discuss the appointments of a coo to take his place on an interim basis. osborne is going to sell

the nation's stake in euro star. the u.k. owns 40% of the passenger train. the majority stake is owned by france. the french papers are saying the french did not buy the stake. hasllas health care worker contracted ebola. the center for disease control has confirmed that a breach in protocol exposed the worker. a national exercise is taking place as to how the country would deal with an outbreak of the virus. it is only a matter time before the virus is found in the u.k.. eventually, there will be a case of ebola in this country. probably in this city. let's talk about this.

is now the protocols that are being used in hospitals around the world that are much and focus. >> would you have health care professionals that are supposed to be stopping the transmission or treating the people who have received the transmission or are sick, when they are getting sick and you look at the disease, have a bull and 200 were health care workers. in the night states they are putting the blame on this one nurse. there was this breach of protocol. any individuals that came in contact with the german who died could in fact also have been exposed. that is why we might see more numbers. this is what they are saying. not breach of protocol may have been this one person's mistake. there is a lack of protocol. then spain they were doing

same thing. there was blame pointed at the individual nurse and then questions asked. >> they are looking at a couple of different places where it the transmission vector may have occurred. one of the places they are looking at is taking the suit off. if you have not put one of these suits on or take it off, this is important because that is when you can get the virus against your skin. then it is only a matter of time before most of us -- most of us touch our mouth at some point. then it all goes wrong. the head of the nurses union in the united states says we don't have enough training on this. a fraction of the nurses in the united states have actually gotten the training that they need, a dress rehearsal if you will. that is meaningful in europe. we saw those training exercises in hospitals here. weis working on it and france's formulao come up with a

to prevent transmission. i think we will see a lot more focus on this. the financeh minister of sierra leone. this is one of the three countries that is facing the epicenter of this virus right now. the finance minister said he is very concerned. people areo say that running away. cocoa and coffee is also down. mining has been affected. cocoa and coffee prices rose

the most in three years. we are seeing around up -- a run-up. this is having a global impact. -- wek at the european were talking about travel stops. that was the worst performing sector last week on the stoxx 600. this was the worst performance in three years. you can say that all european stocks were down, but not by 7%. travel leisure is down again today. >> thank you very much indeed. have more onto this economic impact later in next hour.r in the a take on where we are with this in africa and the long-term impact.

is going to be a gdp impact that you will feel for years. let's go to hong kong. mobs of been confronted. ofs is the third week rallies. this is testing the patience of business owners and taxi drivers. i saw some of the pictures that you tweeted out earlier on. you were caught in the middle of all this. yes. we saw something happening in hong kong on hong kong island that we have not seen so far. the anti-occupy protesters were confronting the pro-democracy protesters. they met in a park. the police tried to contain them to this park, but they broke through the pearly scored and ran up the streets. it was mostly older chinese men. they were thuggish looking i've got to say. the police managed to control them. they linked arms and they held

them back. at one stage, there was a no man's land area in between other police who were not so much trying to hold back the pro-democracy protesters but trying to protect these protesters. after two hours of screaming confrontation, some sort of signal must have gone off. protesterscupy melted away. they disappeared into the local underground and the mtr. confrontation it blew up and disappeared just as fast. there was a huge police presence. guys terms of what these were, what are they looking for? where they looking for? >> they were yelling open the roads. very clear. a lot of these people are small business owners and taxi drivers. they are involved in logistics. corporations, we

were talking about the triad's last week, they make money from a protecting the minibus routes. they are not operating. this is having a very severe economic cost on to the people who can least afford it. small shopkeepers and people who drive buses and brought -- drive taxis. they are really hurting. there is a vocal protest going on. these twos that groups come together and you see violence. violence between two protesting groups. >> in terms of the bigger picture, questions are being asked about whether or not the ceo will be able to hold onto his job. we are reading the tea leaves. what you seen it? he is coming under quite a lot of pressure. money was received as a

fee from an australian happy. this is being investigated. he is coming under pressure. it does look as though he is going to hold onto his position. if he does resign, that is going to look as if aging is backing down. beijing is supporting the been supporting the beijing position. the word is, in three months time, he resigns for family reasons. we will have to wait and see some resolution to this crisis right now before that happens. >> some sort of a deal will get done. great reporting. thank it for joining us from hong kong. come up, revenue for wall street. time to pullght into the u.s. stock markets?

we will discuss that with barclays. we will get a view of from the bank when we come back. ♪

>> come up later on bloomberg tv, we will be talking to

chrysler. malan, we picked columbus day for the wall street debut. the right time to woo u.s. investors? is christina church. good morning. there are a lot of skeptical people out there. a lot of skeptical people. you're not one of them. >> we are skeptical about the five-year plan targets and the size of the targets. we do think there is a lot of benefits from the plan. market has ruled out the fact that he can do anything and there is a lot of upside opportunity. >> he is one of the most charismatic guys you'll ever meet. he is a great poker player. he knows how to communicate the

message when he wants to. why do we have this gap? >> he knows how the markets work. he plays his cards close to his chest. we will find out what he has planned. he is very good at giving the market guidance when he wants to. he is being quiet going into the listing. you said we will get to visibility by year end as to any type of change in capital structure. there are plans a foot. he is waiting for the timing to see when he was desk will discuss it. about of the big concerns this company is its balance sheet. it doesn't have the financial firepower necessary to be what he has laid out. how does he square that? he has a lot more firepower than he gets credit for. he has $7 billion in net debt. he has a lot of liquidity.

he has the ability to finance the plan. he has over $20 billion in grace liquidity. him 9 billionves and excess cash. he has an aggressive plan. he has the cash to fund it without having any issues. pragmatic to put some more financial firepower out there? >> i do think he needs to do and issuance. -- because of liquidity purposes he has made it clear that they would consider. i'd of the key needs to. if he thinks it is an overhang, he would go ahead. >> busy focusing on the right things?

this is going to be successful around the world. what about the other parts of the business? i member being down at the motor not allowed to talk about it. we're not quite there yet. you wonder if they have got their ducks in line on this and whether it is the right investment. >> i think jeep is the key investment for them. inis a grace area both europe and china. they are looking to expand jeep. they have a norm is racing heritage. the brand has huge amounts of value in it. he said himself some very tough targets. with mercedes and bmw? that is a tough order. can he re-energize the brand in a way that is done with maserati? i think there is a lot of

potential. >> you played at the financing and talked about there being enough liquidity in the business to invest in the plan he put forward. should he be putting money into alpha? would it be's and better elsewhere? >> i think it depends on what he does with the money. there is certainly noise in the past from other competitors it is to the value of the brand. would they like to start the brand from scratch themselves? potentially. if he can bring out one car in the near future that is a success, he could add to the value of that brand considerably. do you think there is a long-term plan to spin and out like for ari has done? there are all kinds -- like for ari has done -- like for ari has done. fore is setting himself up

option audi if he sees additional value. he thinks they can be rest valley -- value. >> if i'm sitting on wall street today, is this a stock i would be happy with? >> i think an auto stock is a tough call. it minute be an ideal timing in the short term. in the long term, we see a huge amount of upside potential. there are a lot of things the company can achieve in the market is giving them low credit for -- little credit for. >> christina church is joining us. we have an interview coming up later. is joining us a

little bit later to talk about the debut of this business over in the states. we can't wait to hear from oath of them. we will talk about what is happening here this morning. the missionary was happening with the stocks. -- let me show you what is happening with the stocks. we are back to flat now. that is the dip. that is the stock 600 over the last week. let me show you what is happening with oil. this is the commodity that led the story. it is still down. european stocks in general, let me show you what is happening. they are all of the green now.

they have all traded up into the green. this is what is happening with fixed income. it is moving around a little bit. meetingy interesting taking place in luxembourg. the french budget is very much in a focus. we'll take a break. we are back in a couple of minutes. see you then. ♪

>> good morning. welcome back here and it is time for energy headlines. the energy generated by these windfarms could power 1.4 million homes. operational by 2018. the region is on track for an energyre in and clean consumption. that seems pretty reasonable. westwood is helping with renewable energy. the company wants to use the website to raise 5 million pounds. the money will go mostly to the development of an onshore wind

farm. it may go toward hydropower as well. the first word is up next. for our television viewers, this is the second hour of "the pulse ." interview.e an is when you are looking at a story that is so bleak in france, how big of a risk is this country running. they are at a negative by s&p. we look forward to that conversation. but me show you the markets as well. you know what happened last week. it was an incredibly volatile week. people are coming in and buying

the dip. we will see what firms up. it is columbus day. it is a holiday. you may not get the volume looking for. ♪

>> this is as bad as 2008. the french finance minister says stagnation could become chronic. we will hear from them throughout the show. pershing square drops. we spoke to bill ackman in an elusive interview. street, they wall start trading on the new york stock exchange. we will be speaking to the ceo and the chairman. this is a great conversation coming up.