>> ebola arrives in new york. a doctor has tested positive with the virus. we are live outside the hospital. >> punished for success. the eu to handover an extra 2.1 billion euros because of the country's strong economy. >> too close to call, recess and nieves harnacknd and back. we will talk to mark mobius about the story.

good morning, everybody. welcome to "the pulse." we are here in london. i am guy johnson. price i am printing approximately at these are the top stories. -- >> i am printing the plot. these are the top stories. dr. craig center is being treated in isolation at bellevue hospital center in manhattan. that is actually holiday is now. what is the latest? facts as you mentioned, dr. is in an isolation unit. this is seven hospitals designated by new york officials to treat ebola. they have been doing drills. they have been prepared for months. yesterday, when dr. spencer fever,with a 103-degree

according to mayor bill de blasio, they moved swiftly. they sent an ambulance. there was a team with hazmat suits who transported the doctor from his apartment to the hospital. nea,doctor was in gui working with doctors without borders, which is why so many people were alarmed about this news yesterday. he had contact with ebola patients. he returned about 10 days ago. the incubation period for ebola is 21 days area this looked like it could be a possible ebola case. governor ofwhen the new york spoke, he addressed concerns and said it is indeed ebola. >> what are the authorities doing here to contain the spread of the ebola virus in new york? >> first of all, officials are being very clear that people should remain calm. the risk of getting ebola in new york city is extremely low.

there are people who have had contact with him and we have been learning that he rode subways, was at a bowling alley, uberan urder taxicab -- taxicab. people are worried. the governor talked about some of the people he had been in contact with. here is governor andrew cuomo. >> we are reacting very quickly and identifying about four of the people we believe he came in contact with during the relevant period. we are already contacting all four people. >> from the beginning, these officials have been very clear. they have been addressing concerns immediately -- i am sorry, we are hearing a lot of ambulance sirens. yesterday, when the patient called in and came to the

hospital, the hospital made a statement quickly. officials addressed concerns immediately. it appears as if they have learned their lessons from the dallas case where communication was not exactly coordinated. seemed relatively calm. officials are trying to address this, make sure everyone is staying calm and make sure everyone is in the know. shelby, thanks so much. the situation seems under control. we will have to see any new developments. we will continue the conversation about ebola with one of the well-known frontier investors, mark mobius from franklin templeton investments. we will go through all the implications. >> let's bring you some news from the hedge fund community. bloomberg story out without the last few minutes suggesting that

paul taylor, the chief executive of eclectica asset management over in kensington, a fairly high profile hodge fend -- hedge fund, may have left last month. they are not responding to the calls we have been making. we have called his office, mobile, e-mailed him, but certainly there has been a lot of news over the last week or so. there has been a hemorrhage of assets reported from the fund, from one of the eclectics funds -- eclectica funds. profile. a very high since then, a little more circumspect when it comes to a media appearance. we are waiting to find out whether or not we have

confirmation that paul taylor has left the business. we will get back to you with that story. >> we had to high-profile d-up archers already. one in september and one in may. >> interesting times. back tolet's take you our other big stories of the morning, david cameron challenging an eu call for britain to contribute an extra 2.1 billion euros to the budget. will hutton joins us now from brussels. can you run through exactly what the commission is asking for and why? is one of those situations where you get to the end of the year and you get a letter from the tax authority saying, we think you os more. -- owe us more. couple. in the last weeks got a letter from the european commission saying, we

think you underpaid your contribution to european union funds by about 20%. they want another 2.1 billion euros. on how calculated based everyone's economy has done. relatively, the u.k. economy has done very well. the u.k. isn't the only country receiving this demand. it is the largest. the netherlands has been asked about 600 million euros. there are other countries including some surprising ones. countries like france and germany are being told, you are going to get a bit back. >> what has the response been? 2.1 billion is quite significant. what did david cameron say? he hasn't said anything public yet, but privately, his office pushing back quite hard.

he had a meeting with mark richer's. the netherlands is the next biggest demand recipient. he and the prime minister met yesterday afternoon in brussels to discuss how they are going to fight this. this comes at a really bad time for david cameron. he is under an awful lot of pressure at home. the anti-european union u.k. independence party is fighting a by election, possibly on course to win down in southeast england. the last thing david cameron needs is to be seen to be handing over a big chunk of cash to brussels. rob, do you have any sympathy for the countries that are going to be making contributions into the budget? do you think this will be sort thatderstood in brussels

this makes life difficult for him? , you are part of the party, you have to play by the rules? >> there is a bit of both. i was talking to one u.k. official who said sometimes it does feel like the european commission does want britain to leave the eu. these things, and they are badly timed. received aemand couple of weeks ago and they would like payment at the start of december. if we receive this tax bill, we would be quite upset about it. on the other hand, they probably do want to keep the u.k. and. they must be aware that there is huge pressure on cameron at home. we have conservative members of parliament saying he should refuse to pay and if there is a demand, he should have parliament change the law. cameron is under enormous pressure and they must recognize that. on the other hand, cameron has

not always handled eu diplomacy brilliantly. he has this tendency to stand up and say, i am going to take them on. that works very well outside but , nowyou get into the room you would like us to help you. it would be interesting to see how this one plays out. >> i think that is an understatement. we are fascinated. thank you very much indeed, rob hutton. >> i love that. you give a big speech and then walk into the room like, what did you say? let's talk tech now. it is turning into a tough season for amazon. the company posted is worst losses since it first sold shares. here with more is caroline hyde. investors are basically starting to lose patience. down 1.13 percent. they are losing patience with a company that keeps promising

rewards in the future for spending big right now. almostuarter net loss, half $1 million. they are spending big on smartphones. they are going into drones. they are moving out much further than e-commerce. they want to be in every part of our life. they are bringing in huge amounts of sales. amountlion is no small to be making in a quarter. they are making $27 billion next quarter. that is not as much as people want to see. when you are spending more than that, it is becoming irksome for many investors. >> let's talk about the cloud. microsoft and amazon. >> this is the silver lining for amazon. it provides the ability for smaller companies to run their

websites, apps, to store data in the cloud rather than big servers. they managed to turn the corner. amazon had a lot of competition coming from microsoft and google. there was a price war. they managed to drive up volumes. so that is reaping rewards. microsoft, this is a company that over delivers at the moment. this is where satya nadella has hit his weak spot. he is perhaps not playing to the female years so well but he has managed to please investors. profit up 5%. despite the fact that they are sacking 18,000 people. that costs a lot when you have to pay out redundancy packages. sales were up enough to make this company profitable. commercial products more than doubling in demand.

,hat i love is this statement how many vendors of this size are growing that fast? pound theis is a table outperform company. they are also doing well in their phones, surprisingly. tablets andell in software. >> thank you so much, caroline. >> i didn't get the memo. we are going to continue that conversation later. company that powers the mobile story at the moment. we will get his take on where we go from here. >> you did have a yellow tie, you just decided not to wear it. >> coming up, the health of the u.k. economy. our next guest expected to come

in below expectations. >> later, one of the biggest stories heading emerging markets. mark mobius will talk brazil, will talk russia, and will talk the impact of ebola on west africa. ♪

>> welcome back.

u.k. gdp data will be out in 10 minutes. our next guest expects the economy to grow less than the consensus of 0.7%. joining us now is eric moore. great to have you on the program. ghtlyre expecting it sli below estimates but the economy is still strong. >> if i had to call it, i would probably be on the downside. europe, wey that, have seen a slow down there. i think the biggest driver of gdp in the u.k. is consumption. company dataecent has been quite weak. the retailers have been pointing to a tough september. some of it is whether, some of it is slow down. side, thee housing

u.k. consumer is very reliant on what is going on in the housing market. there seem to be some signs of slowdown there. foxton's, a very london-based business, that has beena n engine house -- been an engine house and that has slowed down. trading is good but not as good as it has been in the spring season. is that as good as it was ever going to be? --that was rogue recovery that was the recovery. moving on. over the last three years, it has been a bit choppy but if you take the bigger picture, the market is up 40% or so. anticipation of a recovery that as you say is pretty uneven. to step back again and say we are living in the aftermarket of the credit boom there is that means

consistent and massive deflationary pressure all the time. there is too much debt everywhere. that limits the ability to get sufficient gdp growth. is, monetary policies have got our backs. the bank of england and other central banks are alert to deflationary forces. measures keep us on this tight rope. i'm afraid that we continue to bubble along. that sounds like a very difficult thing to do. >> it is risky. the risk is that maybe we fall off into a deflationary scenario. with all the central banks pushing us back onto the tight rope, there is a risk that maybe we can bubble the other way. our central banks going to go

too far? qe tooey do one bit of much? >> have they not done already too much? if you look at valuations, a lot of markets have gone up with that extra liquidity. >> equity markets in general look fair value. if you look at the long-term ratings, compared to other assets, equities look very cheap. will yield over 4%, which is extraordinarily good compared to fixed income. unusual that equity deals more than sovereign bonds. goodnk there is still a valuation argument to be made for high equities. get some areas of the economy where there is growth, some sectors where you can find good investment opportunities. >> next year looks incredibly

tricky for the u.k. mainly for political reasons. i was listening to hedge fund guys a couple days ago and they were all really downbeat about next year. they are thinking the scottish referendum, extrapolating it to the wider u.k. economy, none of that is good. >> that is a good point. political risk is usually ignored by markets. no one cares much. going into the election next year, the stakes are higher. the most likely outcome is uncertainty. no one likes the uncertainty. if you have an outright victory, we are looking at a referendum for the

eurozone in 2017 and that is a negative for the investment community. are thinking about building a car plant in england, maybe you hold back. we will wait to see what happens with that. r wins, either way, it looks pretty tricky. >> eric, thank you so much for all of that. >> coming up, protests in hong kong, the threat of ebola. we will discuss the market risks and the reactions with frontier guru mark mobius. that is coming up very shortly from hong kong. ♪

these are live pictures coming from brussels where eu leaders are meeting. the focus is going to be on the u.k. the hot political potato. spot the leader that is scowling and that will be a country that is having to contribute a little bit more to the budget. >> probably keeping a low profile.

that is where i would see him. >> it is going to be an interesting meeting. we will be back with the story from brussels a little bit later. is rajoy smiling, hard to tell. >> equities lower across the eurozone. politicsers is u.k. and u.k. gdp that comes out in three minutes. this is the pound, 1.634. the one to watch, euro-sterling. i haven't got it on the board but euro-sterling is very interesting. forhe you -- the eu asks 2.1 billion pounds, growth is doing much better than the rest of the eurozone. what does this mean for u.k. politics? will that energize the u.k. up movement? u.k. gdp expected to come out in a few minutes. you, togoing to blame

be honest. >> i say prime minister david cameron has already read the speech. >> fine, i am still going to blame you. we will be back in a couple of minutes. ♪

>> welcome back to "the pulse." we are just getting some figures out of the u.k. >> we are. the number matches the media estimate that we had, the forecast number that we had from the economists. you are looking through the detail, the construction numbers look a little weak. everything else looks pretty much in line.

certainly, led by services, seems to be the overall story. the service is number unchanged. >> let's have a look at the pound. maybe yields as well. there is much more out there. yields to remain higher. there is the pound. >> a little bit of a spike, not a great deal. this number pretty much as anticipated by the markets. we are popping up to session highs at the moment. we will see if this really changes anybody's expectations on when the rate hike will come through. >> it is a very interesting day for the u.k. with david cameron in brussels facing a request that britain pay an extra two-point one billion euros. >> that is not going to play well. we are still pricing in lower rates.

higher equals lower in some way. let's move on. muchis the number pretty as anticipated. >> authorities in new york have confirmed the city's first case of ebola. a doctor tested positive after returning to the u.s. from guinea. joining us to talk about the risk is franklin templeton investment emerging markets chairman, mark mobius. great to speak to you again. you are one of the first people in the world in the frontier markets. these are markets that are little known. a lot of these markets are present in africa. how concerned are you that there will be more of a huge selloff if ebola isn't contained? markets sometimes are not very sophisticated. >> i am more concerned about what is happening globally, the spread of ebola globally. if you look at the numbers, about 5000 people have died of ebola so far.

look at hiv-aids. in africa, over one million people have died of that. respiratory disease, another million. ebola is relatively small although very tragic and dangerous. i am more worried about the international impact of the spread. mark, can you just handicap for may, what are the risks of that actually happening and where to get think the economies are most at risk? countriesing it is with relatively poor health care. >> yes. a disease like ebola can travel very fast and wide, and can move into developed countries like european countries, the u.s. i believe they are going to be able to nip this in the bud because they already have vaccines and other treatments that can be used.

i am not that concerned. the nice thing about it is that they caught it early. i don't think it is going to have a big impact on the markets. >> what about the psychological impact? will this put people off traveling to west africa? nigeria has been declared ebola-free. peoplebeen talking to from around the continent and they are seeing an effect on tourism. what is the hangover from this? >> there is no question that people are going to be very careful about traveling, even to nigeria. travels to west africa will slow down. , for theset remember frontier markets, we depend on the domestic economy, what the domestic buyers and sellers are doing. what the foreign

buyers and sellers are doing. in that sense, it is not going to have that big an impact. people that have to travel, the oil company people, the mining people, are going to continue to be in these countries. they will take precautions. >> mark, have you been traveling? have you curtailed your traveling or is it is nice as usual? >> not really, i haven't curtailed any travel. month,n indonesia last malaysia before yesterday, here in hong kong now. tomorrow, i will be in dubai. investment made any decisions based on ebola? >> no, not really. we are investing in india. i was also in two weeks ago --

in india two weeks ago. no real impact. i don't see the impact here in hong kong or in asia. decisions made any that would be impacted by ebola. looking at nigeria, looking at the west african countries, we have to be very assured that there will be impact. wee of the mining companies have been questioning, and we have been holding off from further investing. impact mining activities. one last question on africa and west africa, is there anything you would be buying at the moment? how'd you play africa? >> the biggest play is in the banks. thisanks reflect incredible growth you are seeing in these countries. on the list.er one

second, consumer products companies. companiesompanies, that are doing any kind of consumer product. some on the list would be of the pharmaceutical distributors and manufacturers. ebola, they are going to be of great interest to investors around the world. of time,long period pharmaceuticals are going to be interesting. >> stay with us. we are going to change gears. we are going to talk a little bit about brazil. the election just a couple days away. the candidates campaigning all over the country. we will look at what it takes to compete in brazil's presidential politics. >> calls for chains across the largest -- for change across the largest city in the americas. it has been six months since he

last had a job. , he is sao paulo campaigning for a new brazilian president. >> after 12 years, it is getting difficult. things need to change. the workers for party, which is led by income and president dilma rousseff. she has been ahead in most national polls. during the first round of voting, her challenger, nieve s, beat her comfortably in sao paulo. he showed he knows how important sao paulo is. people from sao paulo were satisfied about that. >> name recognition amongst middle-class voters is no guarantee that a candidate's message will travel successfully

to the far reaches of the amazon rainforest. >> it is difficult to ensure that people know who he is. this is a problem. it is fair to say that brazil is gigantic. >> that is why national television takes center stage. can't run a presidential race and shake everybody's hand. to run ae forced campaign like that, you have to use tv. >> candidates may end up spending more than $100 million. during the last u.s. presidential election, around $1 billion was spent on tv ads. in brazil, broadcast time won't shoot up a price tag. because in brazil, you don't buy tv ads. you get for free. >> instead, the financial focus

is on hiring the hottest talent from the media to produce some lavish tv spots. >> 10 minutes per day, it is like a soap opera. you have a lot of people, a lot of travel, a lot of helicopters. >> in brazil's biggest cities, old-fashioned door-to-door campaigning does still matter. that is because there is no electoral college system. every vote carries equal weight. city swing voter in every costs money, but could ultimately count. sao paulo, brazil. >> let's go back to mark mobius. wins the election in brazil is going to have to deliver some pretty bad news to the country. this is a country that is in recession. business confidence at a

five-year low. what investment opportunities are there? >> again, very similar to other parts of the world. the banks are particularly interesting in brazil. resilientshown to be to hard times in the past. we expect the banks to do fairly well. we are a little suspect on the consumer companies in brazil. they have not been doing too good. spending power is down. of course, you have to look at the big ones like petrobras. you are seeing these ups and downs in the market is because one day the polls say that nieves is winning, the next day the other side is winning. back and forth like a yo-yo. if dilma is out, these stocks will do very well. the big problem with petrobras

and these other state owned companies is the heavyweight of the bureaucracy and the corruption that we have seen. like if yousounds had a vote, you would vote for nieves. correct? >> no question about it. >> what is he going to bring to the table? business, it is really surprising. very few businessmen are prepared to put their head above the parapet. they seem scared of the implications. yet everybody in the market and the business leaders seem to be saying what you are saying, of course i will back him. they are only saying that in private. >> exactly. hey are afraid because ifd ilm dilma gets back in, they could be heard. privately, they want change.

what it means is reform, reform, reform. ,he good news, if he gets in they are going to go back to the reform movement that was started adopted.lma, and , we should know in a few days, about what the result is. you are talking about reforms of domestic issues. rousseff has done in the past is blamed domestic troubles on the international situation. do you think that is a fair assessment? >> absolutely not. it is domestically produced. brazil is a big country. it is like the united states. they could cut off themselves from the rest of the world and still survive. they have all the resources, the

people, the market. it is all about domestic reform. that is the real key. eves wins, will you put extra money to work in brazil? >> yes. we would probably add money. you have to be careful here. will probably skyrocket if he does get in. it may get a little too expensive. we are already there. we are hedging our bets. pop would youf expect? if we get the result, what kind of top would you expect in the stock market? short-term, 10, 15 percent, even 20%. >> thanks so much for all of that. mark mobius stays with us. after the break, we will discuss russia. ♪

"> welcome back to "the pulse live from bloomberg's london headquarters. let's focus on russia. president putin is addressing political analysts today. russia's financial markets are facing -- raising eyebrows. ryan is here with the latest. doi know it is trendy, but

we have to talk about the roble -- the ruble? it is trading just shy of 42 rubles to the dollar. that is a record low. down 27% year to date. one of the world's worst performing currencies. one of the reasons why the ruvell is down today is, we are expecting a report from the s&p after the london close on russia. will it keep the credit rating where it is or downgraded to junk? if it downgrades to junk, a lot of russia watchers say you can expect armageddon. the longer factors affecting the ruble are sanctions to a certain extent, but really oil and the price of brent. we have heard from goldman sachs saying that if brent stays around $85 a barrel, you can expect the russian ruble to fall anywhere from 10% to 15% from where it is now, which is pretty

dramatic. >> doom and gloom. is there any bright spot here? it seems if you listen to the russian side of the fence, they are pretty positive about the story. they acknowledge there are problems but they sound quite optimistic. they think they can whether this one. they think the sanctions are missed targeted. oile is an issue with prices but that tone is more positive than in london. >> they are hoping for sanctions fatigue. no sign of that yet. we heard the german chancellor say the sanctions should stay the way they are. russian stocks are always cheap and in particular, very cheap right now. cheapest stocks out there among the emerging markets. stocks, you have cheap they are trading at 4.5 times projected earnings, you do get bottom feeders or at least

people that hope they are bottom feeders. some people see some light at the end of the tunnel. ts, theyook at e have seen inflows. >> ryan, thank you so much. let's bring in mark mobius from franklin templeton investments. any value to be made in russia? >> tremendous value now, but the problem is this inexorable march towards more and more sanctions, particularly from the u.s. most of our money comes from the u.s. investors. if the u.s. continues to raise sanctions, it is anyone's guess what could happen. we have to be very cautious on this. it is unfortunate because there is no question that a cheaper ruble would be very good for investors like us and the lower

prices in stocks are very attractive. >> so you would put more money in if the sanctions story wasn't there? that is having a direct affect on your decision-making? >> absolutely. no question about it. we talk to our russian analysts and every day they are coming up with new bargains. but we will not put money in because of the sanctions. >> how cheap is it now? have you seen it this cheap before? can you give us a sense of the scale of the opportunity? it is's put it this way, the cheapest major market in the world today. no question about that. with the ruble getting cheaper, that becomes very good for investors. you are able to buy more rubles with less dollars. if you look at the historical perspective, of course, at the

time of the breakup of the soviet union, you could pick money off the street practically. we are not there, but we are pretty close. some of these stocks at low single-digit earnings ratios. no other stock market in the world is selling like that. >> what would you be buying up in russia? >> i would start with the major stocks. go down the list. companies,ajor oil supermarket chains, biggest part in -- big department store chains, mining companies, etc. you could almost be blindfolded and throw a few darts and hit something that is cheap. >> how does the relationship with china work here? do you think the chinese take advantage of the situation? is it possible to play the

russia story via china? >> not yet. i don't think this story is going to play out anytime soon. for the simple reason that relations with china and russia are now by necessity. the russians had to do a deal with the chinese. they were not too happy about doing it. i don't think the chinese are putting an awful lot of money, at least through chinese-listed companies, into russia. i don't see that happening. >> is there still more value to be made in russia than the satellite countries can and mark -- satellite countries? do you like the region as a whole? >> some countries, like poland, have been doing well. companies have been quite profitable, have been growing. a country like romania is going through a big reform program that makes it very attractive.

you have to be very selective when you look at these european countries. , russia is the elephant in the room. that is where you want to be. mark, your take on what is happening in asia at the moment. we saw unilever out with numbers yesterday. the statement talked about a slowdown in asia. it talked about the consumer slowing down a little bit. can you give us your read? what are you seeing? yes, no question, there is some slowdown in selected markets. you have seen the numbers for china where we are not in double-digit levels now. we are in high single-digit growth levels. in the rest of asia, you are talking about roughly 5% growth average, which is very good when you consider it in comparison with other parts of the world.

there is a bit of a slowdown, but it is more like competition. numbersthe unilever probably reflect increased competition for what they are selling. mind you, unilever is a great company and we like to be exposed to that company simply because they are so diverse a fight around the world. is a combination of things, but not so much a slowdown in consumption, more competition. >> are you worried about possible defaults? a lot of people are worried about china. as badures haven't been as some were expecting, but is there still a chance that this country may see a lot of companies go bust? is no question the private companies that don't have state support have that risk. we have to watch that very carefully. you already heard about some scams and problems with private companies.

we are more concentrating on companies that would be bailed out by the state. npl's,s of an the o's -- the official numbers don't reflect what is there. at the end of the day, the state will come to the rescue, to these trusts and other firms. the privateul with ones. >> i have a minute left. how big a benefit for the emerging markets is significantly cheaper oil? >> it is a mixed picture. generally speaking, it should be beneficial. many of these countries are big importers of oil. they, of course, will benefit from that change. by the way, to give an example, in indonesia, they now want to reform the system and subsidized diesel and gasoline by raising

local prices. with lower financial prices. that will be easier to do. , chairman ofs templeton emerging markets group. we're going to take a break. back in a couple of minutes. ♪

>> ebola arrives in new york. a doctor has tested positive for the virus. we are live out the hospital. treating the patient -- we are live outside the hospital treating the patient. ericsson's profit drops. we are going to talk to the ceo about the competition and the telco sector. ♪ good morning to our viewers in europe. a warm welcome to those waking

up in the united states. >> this is "the pulse." >> let's get to our top story. city has confirmed its first case of ebola. a doctor that returned to the city has tested positive for the virus. craig spencer is being treated in isolation at bellevue hospital in manhattan. that is where our reporter is. what is the latest? what has been the reaction? dr. spencer is in isolation at bellevue hospital. he has been here about 12 hours now. he called health officials yesterday were wearing a 103 degree fever. they moved him down to the hospital wearing hazmat suit. blasio said it was a seamless transportation and everything seems to have gone smoothly. ,he doctor was in guinea

treating ebola patients with the charity doctors without borders. they have treated about one third of the a bowl of cases in west africa -- one third of the ebola cases in west africa. he had been self-monitoring and keeping an eye on his symptoms. when he called health officials reporting the fever, they did not waste any time getting him here into isolation. -- theyed what guided expedited his blood tests. they were preliminary, but tested positive. that was enough to confirm the first case of ebola in new york city. >> how are authorities containing the fear? >> in a number of ways. at that the apartment, they have sealed off the apartment. health officials are passing out information to neighbors and residents in the area.

at the hospital, a special cdc team has been dispatched. to handlebeen trained these cases of ebola and they are coming here to the hospital to help with treatment and dr. spencer's care. foremost, the public has been told not to have fear. the chances of new york citizens getting ebola is low. they have identified people in close contact with the governor. -- with the doctor. identified about four of the people we believe -- we believe there are four people he came in contact with during the relevant period. we are already in contact with all four people. the doctor is in good care. hospitalse of eight

designated by new york officials to treat ebola. t of a special lab, they have in isolation unit, they have been practicing, doing drills. held acare workers symposium to practice getting in and out of gear, to avoid the that happened in dallas. we will be following the story. >> thank you. , live from new york city. >> economic growth cools in the third quarter. david.ring in any takeaways from this? >> while it was in line with market expectations, it was below what the bank of england forecast. they had a forecast of 0.9 for the order. -- for the quarter.

if you look at the markets, they are pricing in some kind of interest rate through august of next year. this is push it back even further? year ist of next incorporating what the market is expecting. even though it was not in line with what the bank of england had forecast. the big risk moving forward is to what extent does it weigh on the u.k. economy? seen some signs of a slowdown. the attention turns to the last quarter of the year, how much of the euro was the u.k. able to withstand elsewhere? services, the leading sector right now. is there anything we can extrapolate taste on weakness elsewhere?

>> it is what you expected. the service sector is the bulk of economic activity in the u.k. the strong point is not manufacturing, like it is in germany. that is in line with expectations. -- it is difficult to protect, the next quarter, what could happen? lack of fat,the inflation, whether we can withstand anything from the eu. there is a lot of political turmoil. >> a lot of headwinds facing the economy. the housing conveyed that message and also, the deputy governor said that. eyes are going to be focused on to see thet data,

damage on the fourth quarter. >> david powell, thank you. that good news can be construed as bad news. let me explain why. british economy doing well now. as a result, in brussels, they have decided the u.k. can contribute more. exact.lion euros, to be that is not good news from a political point of view in westminster, particularly for david cameron. the brussels meeting is underway at the moment. eu leaders have gathered them for another summit. our political correspondent is there. europe wants more. that will not pay well -- that will not play well with the british. walk us through the politics and the economic surrounding this. surprise to everyone, including prime

minister's and governments. there is some kind of , aculation of the way recalculation of the european budget and contributions to it. communicated that the good news, if you are france and germany, you can have some money back. u.k. and thee theyrlands, and greece, need a little bit more from them. understandying to this calculation and over how many years it applies. what is certain is the demand to britain for 2.1 billion euros has come in. like it byhey would december the first. that is a bad timing for david cameron, who has a by election bi-election.

they are hoping to take its second parliamentary seat. the last thing from a political point of view that david cameron needs to do is write a large check to brussels. what has his reaction been? quake so far he has said nothing. he came in this morning and said nothing. we get a press conference from him in about an hour or so, where he will say something off of the record. his office, very hostile to this. he says they do not need the money and we are resistant to paying it. with the netherlands -- they have been asked for

about 6 million euros, to discuss resistance to it. what he has on his side, nine countries have been asked for more money. we have the start of an alliance there. and slightly trying to get my head around the whole situation. how this has happened and the way it has happened and the nature of it. is there an understanding in brussels of the political situation in london? it is not clear that there is. that saidne official sometimes i wonder whether they actually want britain to leave. we do not think they do. there is -- the thing about brussels is there is say process where you have people sitting there working through the numbers and here is the real of. we must of -- and here is the

formula. we must apply the formula. that process is not necessarily linked to the political process, the political reality that here is david cameron who is facing a anti-e anti-european, immigration surge in seattle home. he is having to offer concessions to try to keep his party together. is aast thing he needs demand for cash. quite possibly entirely within the rules. of clear how he will get out paying it, but it is difficult for him to pay it. >> thank you. there.ton it seems incredible this bureaucracy that is brussels, you cannot see what david cameron is seeing at home. pressmally the german

conference is packed. the u.k. press conference is pretty packed. i think today, that press conference at lunchtime upstairs going capitol building is to be busy. >> we will get to the u.k.. in thews growth slowed third quarter. we will discuss that after the break. ♪

morning, folks.

welcome back. the ruble is beating yesterday. that was on concern that may be -- was going to be asking extra money from the government to cover some of the payments it has got to make on the international market. that took a big chunk out of the ruble yesterday. today we see continuation of that process. watching for this evening, an announcement from a rating company. there is a fear that russia gets downgraded and that has an impact. you heard mark mobius talking earlier, saying the market looks cheap now, but because of restrictions particularly placed on the community, you are not seeing flows you would see. is going to downgrade further. let's show you cable as well. the gdp printed out early today.

data is good coming out of the u.k.. the pound spikes. sterling, prices in interest rate did not move a great deal. the expectation, pricing in the first rate hike of the u.k. coming towards the back end of the summer. we can talk about the summer here in the u.k. next year, more of a reaction in the pound. >> let's bring in digby. great to have you on the program. thank you for coming in. had real estate, the one that people live in, give us a sense of how you are viewing the u.k. market area >> -- how you are viewing the u.k. market. interesting it is showing services growth because the services growth has been driving demand across the u.k.

market in the offices and retail sector. from londonemand over the last 18 months and is starting to get into the regions. hothich regions are looking at the moment? bristol is looking strong. outside of london, how much foreign money is working its way around the m4 and m3. the main driver will be the media and tech sector. this is the driver from the outset of the cycle. initially with google and newon, and it is headquarters. that is being felt in the triangle between oxford, london, and cambridge. that is where the main tech investment is going. we are anticipating, we will see head count growth of about 191,000 people between now

and 2018. that will drive the demand for property. >> how concerned are you about the political scenario? to be more pressure from brussels on the u.k., which makes things pan out badly here at home. is there concern more companies will decide there is too much uncertainty in the u.k., i will wait to see whether it stays in the eu or not. >> there is a depth of demand. is being sustained in the office market. this will be a record year to take up in the london market. where i think we will see the difference is the investment market. market,nvestment although there is uncertainty in europe, the geopolitical position in the wider global environment tends to focus more money coming into the stability of london. global why we are seeing

inflows from all around the world and we continue to see that. >> is that sustainable? is because of london's position as a safe haven with its rigorous legal regime and its position at the center of the financial world and the retail and cultural world, yes, i think it is. the u.k.ut money into now, what is the story for me? >> we are forecasting that 2014 will see the highest levels of property return since 1993 at 20%. combination, the combination of yield progression and rental growth coming through at the same time. that is up from 11% last year, but i think we will see it forming off next year but has will not be sustained. that is going forward, the average will come down.

there will still be significant returns to be made. >> come down by how much? >> over five years, about 6.5%. >> are we going to see -- there has been a story going around that offices are being converted to flats. as that slow down as the residential market slows down a little bit? areas, there is an exemption from those being toverted and an ability resist that. what is happening is the residential construction that is going on around the french is polarized -- going on around the around theolarizing center. >> will that change if there is a change in power? >> i do not think so. you have to preserve the cities of london and west mr. sc commercial heartland -- of as theand westminster

commercial heartland. you have to preserve the buildings that do that by the values of prime residential and prime commercial. talking to businesses from the start up story all the way to hear ae starting little more it is too expensive, there are better places to go. of doing business. is theinteresting thing war for talent that is going on at the moment with competition between the business sectors and major employers has led people to relocate back into london. vodafone coming in, amazon coming back in. it is becoming increasingly urban. that is something you would see inthe west coast of america,

san francisco, for example. the talent wants to be here. the employers need to be here to catch that talents. we are seeing as office rates rise, people occupy the space increasingly densely and efficiently. although the cost per square foot of rent is going up, the cost per head of occupation is being maintained by occupying the space more efficiently and more densely and moving to new and alternative ways of working. >> more people in an office? office sure it? sharing? >> having spaces for the functions you are doing at work. space if you are having an informal meeting, formal rooms if you are having a negotiation, and all things in between.

>> thank you. get closer, guy johnson. we will be back in just a couple minutes. ♪

>> good morning. welcome back. you are watching "the pulse." through newyou energy headlines. eu leaders agreed on the most

ambitious carbon emissions target of any major economy. ramp upin a bid to pressure on the u.s. and china. leaders agreed to cut greenhouse gases by 40% by 2030. that will cost about 38 billion euros. has -- as sales of their jointly developed plug-in suv winds down. collects martin spencer will host the largest rooftop solar power system. it will cover an area as large as 11 football pitches. british companies are increasingly turning to solar power in order to meet sustainability targets and curb energy bill. hit atits taking a

ericsson as competition ways on growth margin. the ceo will be up shortly on this program. ♪

>> welcome back to "the pulse." we are live from bloomberg's had orders in london. top headlines.e >> the first case of ebola in new york. a 33-year-old doctor has returned to the u.s. from guinea, where he was treating infected patients. officials health after developing a fever and is .n an isolation ward we spoke to mark mobius about the impact of the ball on the

market. >> a disease like ebola can travel fast and can move into developed countries. believe they're going to be able to net this in the bud. they already have nice scenes, there are treatments that can be used. i am not that concerned. the nice thing is they caught it early. i do not think it will have a big impact on the market. anyavid cameron challenging call for additional british contributions to the common budget. the eu wants to .1 billion more euros. blog does nothe need the money. he has met with the dutch to rally support. the disagreement comes at some of the voters are questioning britain's role in the european union. a runoff presidential

election sunday. the incumbent has taken her first lead against her challenger. according to the poll, the president leads by eight points. the winner will have a tough job as brazil struggles with an inflation rate over 6% and remains in recession. >> let's talk about the markets. , wes we wrap up the week are heading for the best week since december 2013. a bit of a rebound. when i dig into the gains and losses, gains on the periphery. these markets and look different when they when we get the stress test results sunday midday. losses in mainland euro. dax down a touch. ftse down a touch. travel and leisure stocks, a

little. the stocks moving low art the big european chemicals maker of abandoned their 2015 goals. the other is energy. the big mover is pushing down energy stocks this morning. 22%t down 1%, down by over on the year. this has been a remarkable move. they are suffering off of the back. looking at sterling, let me bring up the pound. the pound, a little bit off the back of the gdp number. 1.637.nd buys you in line with estimates, a relief rally in the pound, back down again. been more thanad 2.1 billion euros, maybe something to think about.

>> everyone is trying to understand the mathematics of the claim. ,> forget about the mathematics it is like the european union u.k. out. about 25 minutes from now, surveillance with tom keene. he joins us with a preview. >> front and center on ebola. we will put a substantial amount of surveillance to the news. us near thecome to top of our 6:00 hour and we will have a number of informed the guests to make you smarter on , whatsease in west africa we are in the united states as well. on finance, bonds, particularly oliver will europe,

join us from carlyle group. i will be e-mailing you to get the proper russians to ask. an election in brazil, this weekend, alberta will join us. >> thank you. if you can get out of the house -- if you get out of a half the er if he is >> i like that. i will ask him about the former president of the french republic and scarlet insists we ask about real estate renovations. we will do that as well. tom keene with surveillance and 25 minutes. that the hedge

leftceo of eclectic a has and did so last month. to one person with , will wainwright. good morning. good asot all been that of late. run is through what we know ,bout whether paul has gone what his reaction is to all of this, he was a well-known character. what doing know and what do we not know? >> he has a reputation in london. he has developed a well-known firm because of his outspoken paul taylor.hired

to oversee the growth of the firm. big operational infrastructure that would suit these guys, that is where the money is. hedge fund managers. it comess left and down to the foreman, like so many background managers. >> this is a great story. guy has been intrigued by everything. you managed to speak to people familiar with the situation and a lot of assets have been taken out of the fund. -- hedge fund, >> the firm managed more than a billion dollars in january, now down to less than 500 million. key investors have called out.

macro managers have been doing ok, but they got burned by what happened in the market this month. one strategy has not have an up year since 2010. some are doing well, but an awful lot or not. >> there are a number of funds .ere how has he been performing relative to the market. >> it is not bad at all. >> this is a part of a shift in strategy, how much of this is down to bad management? >> they say it is a tough time.

other areas are more appealing. >> what is event driven doing versus macro. >> better, essentially. >> watch this space for hedge funds. >> quite entertaining. we are going to talk about action. earnings are out. having an impact at this moment. gross margin did being a little bit. the ceo coming up shortly. ♪

>> welcome back, live from london. tech.'s talk about since 11 years ago. that is appropriate for caroline hyde. she joins us. it has been one of those stories , jam tomorrow for 11 years. point.ay, another

greg's how can a company that makes more than $20 billion not post a profit? to such a huge scale, splashed the cash, so they have half $1 billion loss. the biggest loss since the age shares in 2003. clearly, shares sold off while most 13% after hours. you get the fourth quarter projection, a -- >> you better go wild on the internet. >> they missed profit and sales estimates. the fourth order is not going to hopingboone time we were for. the company is investing in drugs and smartphones. it is trying to be all things, but it is having to spend a lot

of money doing that. >> it is amazing is a big cloud business. it is one of the biggest hosting companies out there. amazon webe services. this area everyone was worried about. they were worried about microsoft, google, offering space to put our phone data in the cloud, all of our photos, and companies that want to be able to outsource. it was a lot of price competition, but even though amazon/prices, they managed to drive up volume. not like the good old days when they saw growth. it is still good and this is where they are seeing these over lining.

is helping drive sales. overshot expectations. he always plays it cool and has managed to over provide for investors. profit rising, even though they are slashing work staff. to pay out a lot of money in terms of payoff. , allis so amazing businesses, everyone was worried about it. the cloud business -- they thought it would cannibalize. we are also seeing the phones doing better. expected, more than $2 billion, making the surface, telling to-one. -- ll areas

>> caroline hyde with the latest from the tech scene. >> let's stay with the media theme. canceling cable tv will not actually set you free. if you want to watch streaming video online, you will still have to take the cable company for internet access or it there is a good chance you are paying too much. >> i hate cord cutting. if you stop paying for cable tv, you still have to pay someone, probably the same company, to get the internet to your house. are definitely paying too much for it. it is really expensive to run courts to everyone talked houses. it would be expensive if you are doing it with yarn. figured companies have

out how to do it. the phone company and cable company. telephone companies did not pay to upgrade copper with high-speed internet access, so we are left with the cable company. basically, one company owns the cord and any other court has the right to buy access to the cord to sell you the internet. this takes a natural monopoly and creates competition. that is novel what we do here. in the united states, the company that owns the cord to the companys selling you internet access. there is no competition. hate your cable company. they do not have to compete with anyone else. company got its start buying access to common carrier copper that went to everyone half houses. it will sell you a get -- a hotspots around the

country, free international calling, it will sell you all of this for 30 euros a month. that is $38. another two euros, you get 197 tv channels. in the u.s., even if you have verizon files, you will not get more than megabits. the average price is about $57. the sec is thinking about changing the policy, but this will not happen because the fcc does not have any brass. cable companies will get their money out of you, no matter what you do. >> erickson has released numbers for the third quarter. drop 9.4%. joining us now, erickson ceo. thank you for joining us.

the figures today put china at the forefront as you try to inld wireless networks countries such as china. >> if you look at the order, we had the growth and we were glow -- we were growing well in china .nd the middle east 56% in latin america. we were growing in seven of the 10 regions. consistent, fueled by mobile broadband, but also the -- on the network is going up. >> good morning.

growth margin, which direction is that going in? >> compared to last year, three percentage points up. that, -- is a little better. we are improving profitability in all three segments. fluctuationen a big in the quarter between the swedish krona and the u.s. dollar. tailwind, but we get headwind on the result, which we need to reevaluate the future hedge contracts due to fluctuation that gave us one billion swedish krona's. kronas inlion swedish

negative impact. >> give us the lowdown in your own words. the top two priorities for the next six months. improve ouroking to core business. infrastructure and services. that is where we would continue the work. the other priorities, we want to get a stronger leadership in media, billing systems, the cloud. and i to see more growth want to improve my core earnings and business. that is the focus for the executive team. about the mobile business, one story that stands , spying,curity security, nsa. how big of aket, potential is there for you in security and what are the

opportunities in europe? >> it is going to be connected. billion mobile broadband connections in 2019 and we are going to double the amount of people having access to the internet. we are going to have more people havected and they will things like security and privacy that we need to work with. the networks have to think about security and quality because this is going to be important that the infrastructure is working. thate seeing that our -- we are doing the best thing when it comes to supporting consumers and our customers. security is one of the things you want to tackle ocean mark how would that market work for erickson?

>> we are working with our technology for years. it is not the separate -- that we are selling. what we are working on. that is part of the quality we need to sell to our customers. we are thinking about the importance on mobile broadband in the ability towards the end of the day. we are not accepting netbooks are going down, that you cannot , we work with quality and security constantly to see that uphave an extremely high time on networks around the world. -- was in the studio a couple of days ago. was -- i was asking her about net neutrality. whether or not there was an incentive for european operators to invest and whether or not net neutrality reduced that. what is your view on net

neutrality in europe? each and everyone should have access to the internet and no discrimination. that is obvious. when i look into all of the future of thee technologies, you need to understand the difference -- you need to understand different types of services need different type of quality aspects. think about the critical health information being sent off. i do not see a contradiction between neutrality and that we can be able to give different type of service levels, depending on who -- i think it --, and bebe a supporting the transformation of the industry. everyone that should have internet should get the internet and connectivity.

it is a clear correlation between the country and a sustainable gdp. sustainable to gdp. are you saying that we should are you comfortable with the plans that europe is putting in place at the moment or should we have some degree of differential pricing? you polarize a little bit. net neutrality means everyone that is -- that could have access should have it. there should be no discrimination. and has to be different quality of services in the future. that will create economic development. we will use broadband and the cloud to transform industries.

they will have different demands on the network. capacity a lot of others might need high speed. discuss,hat we need to how that is going to work in the future. sson joiningerickso us. >> a new york city worker has the first case of ebola. he tested positive for the virus. >> he is being treated in isolation. this is going to be one of the the widerories in united states. we will have a great deal of coverage of it over the next few hours. >> pretty smart conversations. that is it for "the pulse."

.eep it here we will see you tomorrow at the same time. >> we will see one monday. >> you can follow us on twitter. ♪

in isolation in new york city. we look at ebola in america and west africa.

there's a presidential battle in brazil. a conversation on what the sunday election means for global investors. jeffrey bezos faces investors. they are simply running out of patience. good morning, this is "bloomberg surveillance" from new york city, friday, october 24, i'm andkeene with scarlet fu brendan greeley. let's get to the top headlines. >> a new case of ebola in america, diagnosed right here in new york city. craig spencer was taken to a manhattan hospital or he is being treated in isolation. he tested positive ebola after returning from west africa. authorities are tracking his movements to see who he came in contact with. fortunate had a circumstance here, the the affected person was a doctor, a doctor who worked on doctors without borders.