>> the accused of vladimir putin tells bloomberg, he is always being blamed. debut,hoo's market shares of the luxury shoemaker are up. the halo seo gets out of the cab. we will speak to j greg len about his new robot business and why halo is bowing out of north america. >> want to welcome you to "the

pulse." i am guy johnson. vladimiran president putin is competing with leaders in the land, peace talks we could call them but his latest to cuthave been a threat in -- cut the flow of natural gas to the ukraine. a few words with president putin. the hot topic in the lawn is without a doubt the war in ukraine. they were supposed to meet last night at 7:00 p.m. local time, that was going to be their first meeting since they met at the d-day celebration in june. the meeting did not happen until a 11:00 p.m. and did not and until after 130 in the morning. we will still standing there outside the hyatt hotel when he came out and i had an opportunity to ask him what he

makes of the allegations that he is not doing enough to resolve the crisis in the ukraine. he inferred that the criticism is nothing new. it will get messy in this video but how about a watch. askeveryone wanted to questions from the russian president. >> the russian president got in his limousine and before he was whisked away, waves goodbye to boost coney's home where he a rave -- remained until 3:30 in the morning and then it 8:00 this morning there was the breakfast of champions, the russian president, ukrainian president, german chancellor, italian prime minister, british prime minister, french president, they all met.

did i repeat names? met to discuss ukraine again, the russian president left the meeting and said it was positive and good. they're going to be at another meeting in three hours time. this one in the so-called normandy format going back to the four party talks that took place in normandy on d-day. that will be the russian president, the ukrainian president with the german chancellor and the president of france trying to hammer out a deal. the objections from the western are that russia is not doing enough to carry out the cease-fire in ukraine. of course there are sanctions against russia in another eu meeting next week where again the talking sanctions.

ask brief -- >> briefly if you well, we've heard from thinking ahead of the meeting that he may cut some of europe pass gas supply, i was not being taken? seriously,eing taken always when someone suggests that a third of your gas supply to the cut. ,he latest comments in serbia for he was reviewing a military parade celebrating the liberation of serbia, specifically he said that if the ukrainian cost price aside and asked transiting through the ukraine and russia reduce the supply of gas going ukraine cai that amount. address words they will if the ukrainians takes him away. that would of course lead to supply cuts in europe. keep in mind the supply cuts in the ukraine began a long time ago in june.

there are schools having extended holidays so the schools don't have to be eating gas. >> thank you very much indeed. mr. ryan chilcott. a string of sanctions imposed against russia, should germany stopped to get back on track question mark -- track? you are of the opinion the sanctions should be abandoned immediately? >> i think sanctions are not effective and mostly you would not achieve the political goals. at the same time sanctions cause a great deal of damage to bystanders. as you can see economic expansion is slowing down in the euro area and in russia it is a disaster. they are mutually beneficial to stop the sanctions immediately. lookw much damage if you

at the german slowdown is down to what is happening with russia? >> that is hard to say at the moment, german exports account gdp, at the same time energy imports from russia are very important, more than 36% total natural gas imports in germany that come from russia. area arens in this most likely to cause great damage for economic expansion in with thehowever russian crisis we have a big problem with the euro currency and that is of course obviously turning into another round of crisis. oil prices are falling dramatically at the moment, the euro is falling dramatically, is that going to allow angela take a continuation of the tougher line she has been taking? earlier, i think

sanctions are a stone age policy instrument. it is not effective and does a great deal of harm. butonly to companies companies all over the world, for instance u.s. companies are basically prevented from investing, from continuing to invest in russia. goes up and russia because of that and i think it is unacceptable to continue along this path. maybe a change and this kind of policy may come in the weeks to come. merkel taking a tough line on a number of fronts, russia being one of them. she is also seeming to take a tough line when it comes to the of her peers. is that a mistake or the right call? >> that depends whether you

would think that fiscal spending actually translated to high economic growth and higher unemployment. the german concern at the moment balancing and the city out of control. of course the stability pact will be abandoned completely and at the loosening of fiscal policy, the european central bank will have to step in and monetize the outstanding amount of debt and that is of course a danger to price stability and having said that, the german position is, as far as i can see, more inclined to push ahead with structural reform and countries, to liberalize stable markets and product markets. i don't think that more fiscal spending or money printing is helping the new area as a whole

to overcome the current prices. always a pleasure to speak with you, thank you very much. on, european stocks have snapped a losing streak. they're not closed yet, we're not done yet. the last few weeks have been entertaining. this last week to. jon ferro joins us now. this week has a big shock to a lot of people. i think it has shaken the confidence they had. the question is lingering in my the is, are we going to see monetary policy reacting to this and i think that is the next shoe to watch carefully. get a hoodnning to from the states and a hint from the u.k. this morning, rake, qe, they could be carrying on longer than we thought. >> you look at the last 24 hours

and some of the comments coming from the federal reserve the european central bank and the bank of england, it didn't take much for them to back down. two week out and they got a little bit worried, and then they came out to say qe could stay for a little while longer. by market is so conditioned central-bank stimulus that it rallies at the comments from a fed official that does not have a vote. it tells you a lot doesn't it? >> the center of gravity seems to be shifting a little bit. you saw those with the comments made today at the bank of england. >> i think andy's comments were indicative of the move and of these major central banks. the bank of england, a bank that only a couple of months ago many people thought would be the first central-bank, to come up and say i'm feeling a little bit gloomy. these guys are nervous and are

worried about the eurozone. but you packed away the issue of credibility. end of this month they keep qe on hold what is that say that the credibility of policymakers that when it starts to whistle they stay on hold? >> we are assuming that they are reacting to the market, or are they reacting to what the markets are reacting to which is concern about lower growth? >> concern is the bottom line the retail numbers haven't changed much in the last two months. there is left of an inflation policy, butf to making this point in the ft this morning, talking about the fact that the u.s. is like a rock climber at the moment with everyone hanging off the back of it. europe,w growth out of

very slow growth out of asia. >> making a point here, his is the tailsterday, wagging the dog or the dog wagging the tail and the market is now pushing the fed to position where it is difficult to get out of this low rate uber overture low stimulus world. >> over the next two years it will be interesting. or 8-1?by 9-0 9-0 or 8-1?e crime -- once again climbing in greece. the well-known greek banker effectively, now in government, we will get his take on what is happening. investment, wein -- asee why the brand

brave move many would say.

>> welcome back you are watching the pulse. jimmy choo made its debut on the london stock exchange today. they went public despite the recent market volatility, but

shares priced at the bottom end of the range and they are trading pretty flat. good morning, andrew. how brave a move was this? despite the initial pop is this still a good idea? i think we have to see this in context of what the billionaire holding company is seeking to do. earlier this year they re-organize their luxury unit and got rid of that and said it was all part of a new focus on their holdings, however if we look at the price that they set for jimmy choo, it is about what they paid three years ago. that, they are not investing the money they get from the ipo in the business, so as one analyst put it to me, all of this really points to ja be sicking -- seeking to get out of and perhaps getting

out of luxury altogether, the idea is that a low price is better than no price. that is not to say that jimmy choo does not have an opportunity in the market come a it is a well-respected brand. it has a lot of recognition, that it has a long way to go. margins,bordinate they're saying the key is to take the margins from a shoemaker to that of a luxury shoemaker and that is moving from a roundabout 30% to over 50%. to do that, that requires a bit of investment but only -- not only in products, but a big challenge. the brenda strong and there is demand for it and it is growing fast. a big? as to whether now is the right time, but jb obvious he believes it is the right time.

are they cool enough to make the leap to the next level? >> the shoes are very popular. i suppose jimmy choo probably rose to fame off the back of sex and the city. labels theof the lead character would talk about and where, the question is can it be a brand that appeals to men? brand forthe go to buying handbags and clothing? a big? over that. our investors -- are investors and our consumers? they do have things on their side of the jury is out whether it has enough stretch.

will it appeal to a broad enough set of consumers? great stuff, thank you indeed. let's keep looking at luxury billionaire, prices have been flocking and london. how can you get in on the -- action? feel likesometimes the artists have taken the mickey. the experts say demand is strong. markets a very bullish in the art market right now, and even of the stock market is fairly quiet, it is extremely strong. here we are in one of the top , he ises in london

helped the careers of a number in a has artists really skyrocket in terms of importance and appreciation. say this is the next artist that could make huge amounts of money. the belgian artist is not one of the top picks. >> we would look at it as definite. we would not invest in it, we model,ee it as a top maybe i will be proved completely wrong, but it is not where we will be putting our money right now. >> the final pick, two well-known names in britain. damien hirst and anthony gormley. at 4 millioned pounds. there is now a real resurgence in interest.

some markets where it goes down and comes bouncing back, just like other markets in the contemporary world. we see it go down 50% and then go up 45. >> savvy investors could make themselves a hit the profit -- pretty profit. >> still to come, they can keep thecompany or even help injured. will check out the latest innovations. japan's robot week and why halo's founder says robot will become the new mobile, i.e. everyone will have one and they will become ubiquitous. ♪ >> welcome back to "the pulse."

we are live on bloomberg television as you can probably tell. to the markets now, the jonathan ferro. >> what a crazy week.

heading for four straight losses on the stoxx 600. the longest losing streak since 2013. we are finishing the week on high with the ipaq over 2%. gains of 1% here in london and gains of over 1% on the dax here in frankfurt. guy johnson, let's not talk about economic data or fundamentals, let's talk about the wit of central bank stimulus. he comes out and suggests that qe might stay on hold. seriously? the market moves for two weeks and you are talking about qe forever. that is a sentiment right now. you are seeing policymakers back off. do,ecb is doing what they talking the talk and then talking about the possibility of doing more.

the real standout policymaker today is andy. yes and flay's trending lower but this is meant be the first major role -- major central bank to put up rank. look at the impact on sterling this morning. it dropped one third of 1%. $1.64, ask the question, what is going on, policymakers are already backing down. are they worried about the volatility of the market. are they just concerned about europe and the european recession. the prospect of that. the market has moved, it has swung violently and policymakers are already backing off. are, he gave an interview to a british broadcaster and says in mid-two dozen 15 a rate hike is a reasonable bet. we will see.

next, with google we will see what the tech giant is struggling to relight struggling advertising sales.

welcome back, you're watching "the pulse." the russian president vladimir clute -- putin threatened to cut natural gas supply. this weekend he meets with european leaders in the land for peace talks. he says he is felt victimized by the rest of the region. land, he has been speaking exclusively to

bloomberg and says he is not worried too much about weak nerves in the economy. i have seen the possibility of slow growth and in other parts of the world we've seen that devaluation of the price of oil so there are situations that can suggest slower global growth. of course we have to take them seriously, but no panic should be allowed. google said it missed profit and revenue estimates for the third quarter. sites slow advertising sales. google, thater for is it time to panic? >> maybe not. pains,ould be growing

because what you're seeing as google transitions into mobile and the same with facebook did two or three quarters ago even though they are a younger company. when you look at the percent of ad sales on tablet and mobile phone it is 33% this year. one year ago it was 20%. how google navigate -- navigates that be crucial. as theyg that's clear are hiring. another 3000 employees joined in the last quarter and that brings their total to 55,000 employees. one thing we want to look at is gross profit margin. -- indicationinto that the company is not as profitable as it once was. in this key metric of whether or per click.cost how much they are getting per user. this is down ever so slightly. you look at some of the previous quarters when they're making the transition to mobile, this could

give an indication that the worst is over and that they are stabilizing and bringing the cost per click into line. thing, google does not break out their cost and what comes from mobile, or desktop and you cannot google it. of all the things you cannot google. employees perut click or employees per dollar earned. the numbers are going up. >> you overall do see increased revenue, which is what everyone is talking about, we will see what opens at today, the miss was always $50 million out of 13.11 billion, it was not a massive miss on the revenue side. one thing google is doing is a lot of capital expenditure. investment. is 10 billion for capital

expenditures. building andny preparing for the cloud, building data centers for the cloud, even if the numbers are not there yet. preparing for the cloud and we will call it there umbrella strategy. i know your english guy's a you did not bother with an umbrella, but if you were googling you would be cracking for the cloud. fair, i think we brits know a thing or two about an umbrella. i think i can see myself in the cloud with an umbrella hoping it will not rain. i guess google is in the same camp as me. thanks very much indeed. keep talking tech. apple will have a new lineup of the holiday shopping season. they unveiled a second wave of product announcement this season.

cory johnson went to check them out. >> ipad sales are falling, the question is will the new ipad air have enough innovation to bring the consumer back. >> the brand-new ipad air two, the first thing you notice it is noticeably thinner. 18% thinner than the ipad air. you can never be too rich or too thin. this display is a lot higher quality. this retina display was made with higher quality and an image quality that is impressive. it allows you to do more things. to have a display that works you need a better chip. a more powerful chip in this monitor, inside the machine. needed torse he connect faster so it has a faster version of wi-fi than any a cellularell as version. a faster lte chip. and the thing people have been asking for is the touch id.

andre just using your thumb the same way they have for a while on the phone. it is a big difference for people use to log in with their phone in the same way. big, theevice is too new ipad mini has all the same features which of course comes at a somewhat lower price. just in time for christmas. telekom is said to have and their joint venture could be valued at $19 billion. let's bring on the european deals reporter. why now? >> that is a great question. they already tried earlier this year to ipo the business. now, it is crazy. i think the companies are in very preliminary stages to

explore options for the assets. the ipo remains the biggest priority, but nothing that is going to happen imminently. it will be more of a deal for next year. >> more of an ipo story than a trade sales story? >> for now i think the companies to accept a third point -- >> why is that? >> they want to be part of the u.k.. theu.k. market is one of most interesting and exciting in europe even though it is one of the most competitive. whether or not this would change the landscape significantly, we were talking 02, a couplef days ago and he said this is consolidation. this is not consolidation is it? >> it could come with a very sweet offer, but it sounds more

orangeutsche telekom and are playing very well their cards and trying to get the most out of it. we may see an ipo down the road or a merger scenario. >> thank you very much indeed. up, the selloff seen around the world. did the market send greece a warning? why they may need to think twice about an early exit.

>> welcome back, you are watching "the pulse." it has been quite a week for greek debt. this is the greek 10 year, that is where we started and that is where we are now. you can see the asus points have an absolute enormous lead. markets around europe are bouncing today. what caused all this? let's try to get one from our next guest. you and i met at various stages of the financial crisis --

--the famous leak story things are different today? >> are they? in 2009 to acit balanced budget in 2015, last year for the first time since 1948 with a positive current account, we had a hyper schedule , andarket access targets the first in the world in adopting structural reform. in this quarter that just ended, the first quarter and's 2008. fundamentals are completely different today than anytime before. the market is not convinced, how do you convince the market? you gave me a whole lot of numbers but the market is not convinced. you got a message yesterday

from our institution partners, from the european commission and the ecb that we are working in a prudent way. the greek province is coming to a natural and and we are ensuring that we have institutions in place that things are not have refinancing years to come. think something the markets may not have appreciated yet and they should. now, it is hard to say that you have access. the logic of borrowing is is not there. is a very shallow market, the greek bond market. one fraction of the national debt is in the market. anticipate these levels of fields is adequately appreciate as they depreciate a proven way and the fundamental recovery, who think the fields will

compress again. what does that happen? what makes that happen? what convinces the market that your good credit? data ahead of the program which we have delivered to, together with the small planet from the government to continue reform and a political determination to remain on the fiscal surplus territory is unquestionable. thing is to give the market a clear impression that what you're doing is a very important and coordinated way relation to your partners and no way that greek -- greece will be having -- i think it is our job to communicate to the market how we are working on this. , isf the government changes that what the market is freaked out about? >> the election in 2016? >> they could come earlier than

that. >> we believe the parliament will elect the president, because the election is a constitutional requirement and we doment will stand -- not anticipate self elections. that --hink the fear of the polling data seems to suggest if there was an election tomorrow, he would not be your prime minister anymore. >> the coalition is still ahead of the opposition, that is what happened in the european elections. people have gone through six years of recession, greece is the deepest and most prolonged recession in the history of the western world. it is natural that people not only in greece but around europe, that there is a disillusion with government and programs.

what is important for us is to demonstrate credibly to greet people and international markets that things are getting better and that fundamentals are recovering so people back home will realize they've taken enormous sacrifices, however, they are paying off. >> how do you convince both the --ple looking for despite and thee -- respite, individual markets that you will satisfy the desires of both of them. the people want respite, austerity has been brutal, but the market is concerned the government will not carry the reform program -- you've two competing forces and there is attention. at the moment the market believing any government will favor the former rather than the latter. a fiscal front but we

talk about tax cuts. yeare last year and the going forward we are not talking about taxes but tax cuts because we can afford them. we are one year ahead of schedule. way toeve this is the grow the economy, this is the way to reduce unemployment and unemployment is the biggest social problem by far. we clearly believe this is the way to reduce unemployment. >> what about a precautionary line, one of provide some sort of backstop? >> as i mentioned before we have a discussion for a prudent continuation. >> it's a possibility? >> always. we're not doing something unilaterally. -- >> that is the impression being given at the moment. >> weed to explain to the markets that we are working with

,artners, the ecb and the emf and the action from the ecb clearly demonstrates that these properties are here to continually support greece in the years to come. >> you can understand the cause for confusion. the people i'm talking to are giving me the impression that is concern about what he doing and getting ahead of the polls is one of the reasons why the government has sold it as an exit. we are done with these guys and moving on. you talk about the ucb, the last press conference that mario draghi delivered talked about no programs and no purchases. -- he ishe impression talking -- the impression given their was the greeks would not be in the program anymore. the same time use talking

but the probability of greek paper in the ecb. what is clear here is that we are working in a prudent way. we're not talking about greece becoming a financing risk. >> is the issue that the international audience is lifted by tricks designed to be delivered to a domestic audience? he's talking about wanting to exit the program and maybe he is shifting the line too much and selling it to the domestic population that we are done with these guys. >> there is one message abroad and at home. is approaching its natural completion because we met the objectives. is a fundamental reality. what we need on the second stage, what kind of institutional protection we need is what we will discuss and what was not done last week, will consciously know the european --

the program as we knew it, has not unfolded. we're graduating with distinction. >> nice to see you. >> nice to see you again. >> i would say until we meet again but let's hope the story fades to the background. thank you very much, indeed. back in a couple of minutes.

>> the new energy fashion giant isn't energy leader when it comes to its carbon footprint. marie claire is the chief sustainability officer and joins us from paris. why is it important for a luxury company to be so invested in sustainability? everyone, it is very important to be invested in sustainability because we think way to tackle the major issue of the 21st century, that being the climate change issue, and the scarcity. ceo is why our chairman and

has put the sustainability as a core of our business strategy. the luxury industry has been through good times over the last few years. the world has been fascinated by the products, you have been able to sell them aggressively around the world, but it looks like life will get tougher over the next few years. is that mean there will be less emphasis placed, willoughby harder to sell to your cfo the need for sustainability question mark -- will it be harder to sell to your cfo the need for sustainability? of what weery proud receive because we think it is really a testament of our work -- in all the brands, and

it has why we think something to do on the sustainability side because when you mentioned luxury products, that means heritage, several fair, it isvoie about the credit he. what we call proceeds and loss, is a tool to measure our footprint and to monitor these values so it is very good to have a conversation with our cfo. >> out of curiosity, when someone buys a gucci bag is this what they are thinking about? >> could you repeat? >> when someone buys a gucci

bag, the you think -- how important is this aspect of that purchase? that our customers and clients are citizens, and citizens are becoming more and to sustainability because it makes a link between the british and us and i think when they are buying not only luxury gucci products but also the division product they are s arenced that our product sustainable and it is important to show the luxury also setting the trend. i think business as a responsibility to address the issue was also an overall luxury because we set the trends. congratulations on the award

and thank you for taking the time to talk with us this morning. fascinating conversation. marie claire joining us from paris. break, a short break. ♪ >> the accused.

vladimir putin tells bloomberg he is always being blamed. jimmy choo luxury shoemaker up on the first day of trading. the ceo gets out of the cap. the old co possibly. we will speak to jay brenneman about his robot business. good morning to our viewers in europe and a warm welcome to

those waking up in the united states. this is "the pulse." we are live from the new york -- european headquarters. vladimiran president putin is meeting european leaders. he is threatening to cut the supply of natural gas through the ukraine which will affect the whole of europe. you stayed up late to get a few words with president putin. talks on the war in the ukraine have been going well, quite literally the russian president and german chancellor or supposed to meet yesterday at 7:00 p.m. for their first meeting since june where they were also discussing the ukraine and they in fact met at 11:00 at night because the russian president was late getting from serbia where he was visiting the prime minister. only emerging at 1:30 in the

morning. we were there and we had an opportunity to ask him what he makes of the accusations, you heard it from the german chancellor and many others yesterday that he is not doing enough to resolve the crisis. he if actively that is nothing new. >> the russian president then got in his limo that was waiting for him before he was whisked away, little did i know he was on his way to meet the formal prime minister of italy and wanted to see his old friend. he left there at 3:30 in the morning and this morning it 8:00 he had what i'm referring to as the breakfast of champions.

another meeting attended by everybody under the sun. the british prime minister, the german leader, the french leader, the italian leader, the russian and ukrainian president, president barrosso. to try and talk the cease-fire agreement reached in belarus over a month ago. scheduledmore talks and those are expected to begin at 1:00 p.m. in the lawn at those will be in the normandy quarter or they were in france in june. talks aresay, the very difficult and president barroso warned me that we should not expect a breakthrough. putin has been rattling the nuclear saver and the gas saver, how seriously should we take all of this?

>> i think you have to take it pretty seriously. it was the russian president yesterday in serbia before he arrived here and attending a military parade to mark the 60th anniversary of the liberation of parade was moved up by four days of the president could attend, where he said that if the ukrainians -- i use his anymore russian gas this year that the russians will reduce the amount of gas they supply to western europe by transit through ukraine. in other words they will not top off the tap if the ukrainians siphon off some of the gas. 2006 andat we saw in that's what we saw in 2009 and the result was supply in western europe. now the only supply cuts we are seeing so far are of course in

the ukraine. russia cut the ukraine gas we are already seeing that it is getting cold in the ukraine and schools in particular are already soouncing extra holidays kids get to stay at home. >> not such good news for the parents. ryan joining us from miniland. -- milan. thatis a prepared speech we have seen released from the head of the bank, shock horror. he is a little bit concerned about qe. and the desirability of a balanced budget in germany. a shift of spending focus to investment in germany, the usual comments on military -- monetary policy but one line stood out, eu will be damaged if we

accepted french budget. this is the bundesbank, but i mention he is a reflection of the sentiment within the german government. >> yes and no. withdrawn in the past but not with them. it is not a shock that he is going to take a more holy side when it comes to releasing the fiscal side of the equation. >> no. >> the balanced budget in germany makes perfect says. >> here is a big point. germany on the policy and monetary side cannot capitulate. asset purchases suggests the shift to a qe type of philosophy, but we are going to do this so don't you dare back down. >> you suggest he is prepared to back down -- >> i think he has no choice

right now. he voiced his concerns but he is only one man. a big part of how the ecb works yes but ecb can get things through whether he says yes or no. that merkel mean has already given mario draghi the nod? >> i can't comment on that but over the last five years he has tread a very fine line. you had better follow-through, and right now the french -- >> will the french back down? the italian budget as well. on the monetary policy us well he has summoned to say about politics and fiscal policy. >> i imagine he's feeling squeezed at the moment. at thesitting here trading deck this morning, how do i read this? is becoming increasingly likely because that is probably the more obvious story and therefore i can bid stocks?

i am being hawkish but we will end up blocking and the germans will be difficult in the hedge fund will become a problem and will have a big fight in the center of europe? it is a difficult choice. think the ecb have already moved to a point where they're trying to do more. over fore to get quantitative easing is still very high. if you look at his comments -- do not accept the french budget, politically. this will have huge fallout. as you said the bundesbank is not the government yet but that was backs -- reflects strong views within germany. angela merkel under pressure herself. they have to turn inward again. a lot of work to be done but on the fiscal side, and argument on the monetary and fiscal side,

things are heating up. lisa the purchasing assets may impact bond in asset markets as well. trying to put altogether, it will be interesting. maybe weidman is expecting that we are on a path toward qe. the market is incredibly volatile this is another element to put into it. both companies, jimmy choo debuted in london, share price at the bottom of the range. would you have done this? >> personally i am not a manager, maybe not. you seen people pull ipo's this month already. because of the market onironment and this week, top of the swings in equity markets we've seen several huge

luxury goods maker say there will be significant headwind coming our way. earlieroberts was on and saying basically -- >> the bottom of the range 140 pence. they gives a value of 140 6 million pounds to they paid the same amount three years ago. does this seem like desperation? >> we want to do something else. maybe that's the message to take away is that luxury will get tough. >> we are here to talk about shoes, the shoemaker company, it is a pure market story. >> john thank you very much indeed. european car sales extending a streak for another month. rolls-royce holdings are lower.

willompany says revenue fall between 3.5 and 4% rather than remain unchanged. delay for orders and russian trade sanctions begin to bite. missed profitt and revenue's estimated for the third quarter. as the company steps up spending citing slower advertising sales. saying goodbye to halo. us live,ny coo joins why he is betting big on -- while i'm not going to tell you. you have to tune in to find out.

>> welcome back, you're watching the pulse. we are here in london. let's show you what is happening in the currency markets. we've seen sterling sharply lower but since then the pound has recovered. seems to be that maybe he was saying we can put rate hikes on paper for a little while but gave an interview to itv in which he not backtracked, but maintained the line -- he said it was a good bet that you will see a rate hike mid-2015.

equity markets let's show you what is happening here, central banks writing to the rescue once again. maybe we are starting to see bond out pricing, getting back to stocks. 1.74% to the outside. let's get a take on all of this, let's bring in the global allocation strategist. good morning to you. where are we? a brutal couple of weeks. we're sitting here friday morning, thinking it's over or is there worse to come? >> the trading deck has been great because we have seen close. we have seen market start to liven up so it has been a great time. there is actually noise on the floor which is a sound i like. the volatility we have seen is

massively overdone. red october crash or correction and we are sliding toward the correction side. correctionse these of 10%, the average is 9.5 and this is in line with that. though it seems horrendous, the fog of war, we have seen 12.5ations from 40.5 to and i think this is a good time to apply the short role or go long-term equity. >> are you still nervous? >> they are always nervous. >> would use to be tapping people on the shoulder saying i'm not comfortable with the acquisition, is selling still to come? are margin calls going to be part and parcel of the story? >> we do some interesting trades in the back of macro hedge strategies.

that led to a big selloff on wednesday. there has been some interesting shake else, but i think shake out's of these long positions is not a bad thing. i don't think this would be a massive setback. >> from a technical point of view, hedge fund start trading their books out about now. what will this -- what effect will this have? >> hedge fund averages have fallen quite sharply. but we have also seen very large are owing to buy stocks in the knot it states and that has fallen also. statesks in the united and that has fallen also. >> does that carry-on question mark >> yes, it will carry on. 30%s somewhere around 30%, is like crossing the rubik and for vicks. rubicon forthe

vics. short and that will be a good trade. >> should we? ,'m not talking about bronson what about the peripherals, we were talking about greece this morning, italy, spain, what is the trade? >> we have been bearish on the sovereigns for two months because if you see the spread versus the ratings, spain was -- portugal and italy the same. that actually had to happen. we had to have a correction. >> there is more to come? -- trading less than 1%, what would be the correct spread? >> we think 150 bits would be too farsible, we're not away from it but we still think there should be wider spreads.

>> the shape of the curve? we are the germans flatten massively, what is a trade there? we still think it will be tightening relative to treasuries. we think that trade will continue. cause it tot will continue out relative to treasuries. we are in this weird world where stocks are big but the e-commerce data keeps getting worse. it's hard to get a handle on it. out what the bond market is telling you, then the u.s. is telling you we will go 1% growth. that is completely unrealistic, a clear mispricing there. i think this 30 basis point tightening we saw wednesday is a technical thing because people are widening the derivative

division. inflation in the u.s. is likely to pick up. if you look at the unemployment numbers that we just saw, 5.9 percent now with a 14 year low, i think it will be pressure on the united states. the european story is one that seems to be concerning people. very low growth. what will the next year deliver? ask the thing them mario draghi watches is the five-year fall. he is down to deviations below the long-term average. it has fallen deeply and that is what he will be looking at. is the 2015 watch forecast for inflation. if it roles below where it's at now that will be the trigger for qe, but that value is very high. >> nice to see you.

next,l take a break, up apple revamps its lineup, we will get our hands on with the new ipad. ♪ >> apple will have a

up of ipads in time for the holiday shopping season. than thee new ipads

new imacs and the update to the iphone last month. cory johnson is our man. ipad sales are falling, the question is will the new ipad air have enough innovation to bring the consumer back? ipad airou have the two, the first thing you notice is that it is noticeably thinner. 18% thinner than the ipad air. you can never be too rich or too thin. you notice the display is a lot higher quality, it was made especially for this core. in image quality that is really impressed. to have a display that works like this you need a better chip. a much faster more powerful chip in this monitor here. also wanted to connect faster so a faster version of wi-fi than any tablet they've had. as well as the cellular version

a faster lte chip. the big improvement is the thing people have been asking for is the touch id the ability to log into the machine using your thumb. difference forg people used to logging in with their phone. it will enable apple pay as well. big for you, the new ipad mini. all the same features on the ipad mini which of course comes with a lower price. ,> let's stay with tech musician and entrepreneur that i am he unveiled his new device, spoke with bloomberg west's enemy -- emily chang. >> a whole different conversation around wearables and the next five years and we aim to be the ones that lead the conversation with jackets and shoes that we use, backpacks -- will.i.am. speaking to emily

chang. 1800 full-time positions to layoff. the takeover was completed earlier this month. in the sector, dt and orange have been talking to sell their joint u.k. mobile phone venture called ee. it is valued at as much as $19 billion. ipo will be the likely exit route but sales could also be on the table. and jimmy choo made its public debut on the london stock exchange today. it raises a run 140 million pounds. ,et's take a break, up next things aren't clicking with google. why the tech giant is struggling and trying to reignite slow advertising sales. exclusively to j

recommend about his new robot business and why halo is bowing out of north america. ♪ .

>> welcome back. you are watching "the pulse." i am guy johnson. russian president vladimir putin -- meets with european leaders in milan for what it was calling peace talks. angela merkel criticizing his government for doing too little to support a truce between the rebels and ukrainian forces. european commission president is at that meeting and milan as

well and speaking exclusively to bloomberg and says investors are worrying too much about the weakness in the euro zone economy. possibility of slow growth in other parts of the world. there are some indications that globalgest slower growth. and of course, you have to take them seriously. but there is no reason for panic or alarm. >> there are some good data coming out of the eurozone. ar sales extending again -- gain. 1.2 million, the most since march of this year. happening inis terms of the economy. what is the market reaction? economic much about

fundamentals. a little bit more about qe forever. the suggested the federal reserve may stay on a hold in terms of the qe program. european equities like a little bit more qe. ftse not missing out on the rally. in frankfurt, a move higher of almost 2%. here comes the small print. jim bullard doesn't have a vote. two met he thinks it will move to raise rates in the first quarter of next year. reality check for the market, the market here's what it wants to hear and a here's the stimulus cap stays on. great on yields this week. tenure not 8.94%. at 8.94%. now

higher at over 300 basis points in a month. bella program? the markets are letting them know what they think about that. england comes out this morning and make some comments you know what? the data is making me feel a little bit gloomy, maybe we will also have low rates for longer. you've heard the message. was meant tongland be the first to operate. what is your call? >> it will be interesting. i think people will pay attention to that. the central bank story is front and center. how much is behind the rally we're seeing today? hard to tell. maybe people are bottom fishing.

is about to step up with "surveillance." >> dow futures up 180 points. you're right about the hope the central banks will not step in, but at least to the right things. we have a great lineup to discuss these things. synthesize economics into investment. our guest is in the markets. he is optimistic. timely.optimistic than you know him from jpmorgan. equityusy as him for the markets as well. we will have a conversation with ukraine front and center admiral james tribute us, a former editor supreme commander. he is out in celebration of his new book "the accidental avril." thewill talk to him about headlines that came out across

the bloomberg terminal. you really wonder, where we will be in this discussion in six or eight weeks on ukraine and on gas to europe. >> once it starts snowing, the story gets a lot harder -- hotter. coming up, they can be your friend or bring your cup of coffee or help the injured. the latest innovations from japan's robot week. plusll speak to hailo outgoing ceo. he is betting big on robotics. find out why when we come back to sto. ♪

>> welcome back, you are watching "the pulse." google shares such a fall today. the search giant just estimates for the third quarter. the company steps up spending to boost slowing ad sales. let's bring in hans nichols who has been tracking the action. it is a pretty bad quarter, maybe a little early to push the panic button? >> maybe a little early, but you get a sense of what eric schmidt, when he was in berlin earlier this week, was talking about when he said the biggest competitors are amazon, on facebook. it is not from other search companies like bing or yahoo!. clearly, a lot of the ad is migrating toward tablets and

toward smartphones. one third of and spending was done there this year. last your, it was 20%. in some years -- in some ways, facebook is a ready made this transition. profit margins are concerned. 59% for google. they have been above 60% for a while. how much they get per click, it is down just 2%. this could be the best number and everything that google has that the reported last night because it shows it is stabilizing. maybe they figure out a way to stem losses. you look at some of the previous quarters, they have greater her cost click losses. maybe it is stabilizing. employeesalk about per click. that number is going up. >> it is remarkable. they added 3000 employees. the previous quarter, 25,000.

but they are 55,000 employees. this is a company that continues to grow and continues to invest in hard assets, server sites, infrastructure. in capital expenditures, 2.4 billion. you cross that out over the year, 10 billion in capital expenditures. this coveted makes a lot of money, has a lot of cash, but they're planning for the next -- this is a company that makes a lot of money, has a lot of cash, but they're planning for the next big thing. they want to have a lot of next big cloud emerges. courts if you like robots, japan is the place to be this week. as they move from science fiction to reality, robots are becoming a bigger part of our lives. it was robot week to japan and we went to check out the latest innovations. this is the latest humanoid robot i a french company on display at japan's robots.

58 centimeters tall, mixture of cameras and motors to interact with humans. he can hear you, see you, and he can respond. if he is too tall for your liking, there is junior. he can talk about the weather, sing, and make gestures. all for just $140. if toys are not your thing, you can find help with machines that look after bedridden patients by lifting them out and even helping them walk. companies and 20 universities displaying their inventions here, you may get thirsty walking around. that is where this guy comes in. the robotic for restart. there are no plans to sell him commercially yet, so he probably won't be serving you in a starbucks anytime soon. both --ext guest is

that's robots are going to be massive. islo's co-ceo jay bregman leaving the company. he joins us now. you are in dublin yesterday. you're here for the conference. you have been in some pretty exciting spaces. the story surrounding hailo is amazing and it is wholetionizing hol -- industries. why are you getting out now? a shame the stories have come out together, but it is really coincidence. for the past couple of months, i have been working on a new robotics venture and have been seduced by all that develop its and what i think of as mobile phones were app. >> i said they're going to be as ubiquitous as the mobile in your pocket. willobile in your pocket

become a server. what kind of role are robots going to play? >> i think they can play much deeper role. if you look at the biggest industries in the world, agriculture, manufacturing, the much are done in the same way they've been done for the past 100 years. i think the addition of robots into society will allow people -- a sister was on a farm in new zealand -- to be able to do what was previously done on a portable, have the services of the helicopter of for the price of basically a can of coke, to be able to give her data on where to actually -- >> is this a big data story or robot story? >> i think it is a robot story, but the difference between hardware and software will be melted the same we think of your phone now. is it hardware or software? >> where are we in this process? the mobile phone market has accelerated.

are we see the similar exclamation? times"s reading "the from yesterday saying drones will fill the sky over the next decade. i think that is true. i think basically, we're going to see an explosion in the amount of robots and i think most of the innovation is going to be done here in europe. >> y here in europe? >> if you look at the way the regulatory environment is set up it appears regulators are more willing to allow the commercialization of robots in europe than in the united states. it is interesting you say that because the regulatory story here has been tighter and harder for when it comes to the other story you've been focusing on. , it is beenat uber difficult for them to get in here because of the regulatory story. >> i can't really comment on that and i don't do symmetries are necessarily well phrased,

but everything is regulated at a different level so it is just a matter of what you're looking at, whether it is robots or taxis. >> but the revelatory environment creates different opportunities. is that the framework in which we think about the way science will involve? backdrop, maybe there are differences and symmetries not perfect, but nevertheless, i think that message is valid that the regulatory environments, whether it is the faa allowing drugs to be find in this space or not or taxi firms -- drones to be flown in the space or not, or taxi firms, their framework which defines which opportunities exist around the world. >> it is a whole bunch of things. one, it is about the talent in the society are talking about. i learned yesterday, more people under 35 in the u.k. starting businesses and never before. statistic.uge

europe and technology innovation is on fire. people are starting to go into startups more and more. this much more accepted thing to do. the other is, a willing and open regulatory environment free to actually experiment with this technology. >> people still think software. you have google camps up the road. there are a bunch of software guys. the majority of guys there are software guys. do you think that balance will change? >> i think the distinction will change. i think it will basically be like what apps are two operating systems and software. what is a map? this software but it is intricately linked to a hardware device. i think that distinction will start to go away. >> where is the key opportunity? if you think about robots, clearly, there are advances that need to be made in agriculture. that is true of the industrial

revolution. battles to beeasy one right now? >> i think anything doing with imaging. anything that you would've needed to hire helicopter to do, but easier and cheaper with a fleet -- >> pylons or whatever it is. talks there's a great cup again just learned about in spain that is basically looking at the wind turbines and doing analysis of the wind turbines to see whether or not they require replacement on a much more regular basis then you could of done with a helicopter or human beings repelled down these things, which seems a little dangerous. >> helicopter pilots, the guys that are on the roads going to the side of these things, jobs are going to be shifted as a result of this. do we understand how that will affect society yet? >> i think in the exact same way -- very much like the dawn of

the internet. it is going to lift all boats. i think helicopter pilots are going to be in high demand as largeerseers, overseeing uav devices or drugs rather than just piloting a single helicopter. i think those skills will be in more demand than ever. >> how far into our lives do you think they will reach? >> i agree with no gates. i think there will be a robot in every home. >> doing what? >> new ones are reading to your children, handling home security -- there are already a lot of automated systems in our lives that we don't even think about whether it is -- this is a trend that will continue. what is interesting, that starts to make people nervous. >> how nervous should they be? >> i don't know, exactly, but i do know, whatever -- whenever i

tell my mother or someone else i'm going into robotics, the reaction is either it is military or something to do with late runner or terminator. people are afraid of robots. rightfully so, because if we don't put the right guard rails in place and regulations in place and technology in place to make sure the socialization of robots occurs, gradually and effectively, in line with what we all want, then i think we could be in for trouble. there is a great opportunity in society for people looking at the problem. >> you are going up against some big boys. google has invested huge about the money in robotics. how easy or difficult is it to compete with those guys? >> everybody competes with google. i don't think -- >> they have deep pockets. >> and there are great business. some of the great things they produce like google apps have

build many businesses on top -- >> do you think they are, like they don't know the future holds and they're like, let's scatter a bunch of money around and see what sticks and what doesn't? the companypect very deeply. their sharp and sophisticated. they will be great partners to many startups in the future. >> when you think about where take his nap, the evolutions we are been through and you think about what happened with apple venting whole new categories, do we need to think differently where-- we're in a world we have been through a lot of innovation but it seems to have grabbed a hold in certain key areas where we thought we would see more dilution from. robotics is one of them. where are the hotspots right now? >> great question. i was asked that question before. i think mobile is still a very deep well and there's a lot more

to be done in mobile. i think you'll see a lot more services that are created by people in a particular area, whether it is makeup or hairdressing or laundry or whatever it is. mobile going to become businesses and much more on demand sensitive businesses. there's opportunity for everyone to think about what they do well. do we need to think differently about mobile phones? they have become computers, servers, the center of these wearable devices that we're going to be putting on. >> what is interesting, it used to be you could count on everybody having one. now it is like you can almost count on everybody having to. that will be much more interesting thing. maybe a tablet and a phone, so you can build services whether they be robotic services or mobile services on top of this platform that has been created.

i think it is going to be great. >> thank you so much. jay bregman, the cosio and founder of hailo. watch what he does next with a great televangelist. victim, putin plays the card. we will talk about that in a moment. ♪

>> welcome back.

we want to talk about the pound. more dovish than people expected. you saw the reaction in the pound. talking about a mid-2015 rate hike being a fairly solid bet at the moment. anyway, the pound, back north of 60. what we're watching for the rest of the day, let's rejoin my colleague brent chilcott in milan -- ryan chilcott in milan. european leaders sitting down this afternoon. what are they going to be talking about? >> i'm watching the russian ruble around 41 to the dollar right now. he continues to depreciate. we have two events, 1:00 p.m. central european time, forward

talks with russian, ukrainian, french and german leaders will meet again. then we will get a final word from the russian president at 4:30 central european time when he has his final briefing schedule. what i really want to know is exactly how many hours is vladimir putin going to get to sleep tonight because he met with angela merkel until 1:30 in the morning and still had enough energy to go to berlusconi possibility till 3:30 before that breakfast of champions this morning were all the leaders discussed ukraine with the russian and ukrainian presidents. a lot to watch over the next 24 hours. >> he is a man of action. i'm sure he will be fine. thank you, ryan. that is it for "the pulse." yet, janetdone yellen speaks a little bit later. "bloomberg surveillance" is next from new york.

it is going to be a interesting conversation. you can follow me on twitter. have a great weekend, everyone. we will do it all again next week. ♪

>> winter is coming as putin europeanh leaders.

markets, crisis over, markets catch a bid on a hope, prayer, believe that janet and mario draghi will react. releasing new toys for scarlet to buy this weekend. they will generate additional tax flow for carl icahn. good morning, this is "bloomberg surveillance" i am tom keene. with me, scarlet fu and adam johnson stories this morning, -- we are not starting with apple. we will get there. >> ebola. spoke afterama meeting with government officials or cord ending the response. >> it may be appropriate for me to appoint an additional person, not because the three of these folks have not been doing an outstanding job. this is my national security adviser. it it