>> deal for digital. the debate as germany ways the exit. the issue puts businesses at risk. space.'s investigators are looking for answer after the galactic crash. ♪ >> welcome to "the pulse." i am francine lacqua.

straight to our top story. we had a little bit of breaking news. this is manufacturing pmi, it has risen and pretty much in line with expectations. showsng above 50 expansion. it is the story of divergence of what china and china is doing and put on the table. stimulus.uch more every piece of data from the eurozone is important and has the potential of moving the euro up. lester on the euro. the manufacturing pmi not as bad as expected, pretty much in line. our top corporate story, a deal for digital. a 3.7 billion dollars purchase of an american attack copy -- -- an american tech topic, sapient. guys, thank you for joining us.

matt, let me start with you. previously, wanted to buy another company and it fell through and they are going with sapien one guestt said it would. begreat for digital and they always wanted to be in the digital space and that is where they are the weakest. to get backeffort on the front of foot after this deal fell through. a couple ofouple -- tough quarters and they need to show investors, and competitors who have been snickering behind its back it can still be aggressive and make deals and innovate. it is what we are single which a deal for sapient which is digital agency with a big footprint in the u.s. >> it seems to say it is good faith. they had differences of ideas of how to run the space.

how much do we know about sapient and will it be a good fit in terms of the customer that they can attract? incredibly bold move if you consider what they were going to do with omni,, 82 big company coming together in the old world. sapient has fantastic companies. you go from the mega brands like coca-cola which everybody was to work with two exciting brands like elephant away group -- the fenway group was that you have a good mix of customers here. for a change of strategy, it is quite dynamic. to rely said they cannot take on google and facebook when it comes to scale and negotiation and it would not have happened with omni,. they need to get smart and by somebody who can help you with the data and analysis and that

is what they are excited. >> are they not a little bit behind the curve? when they talk about the need to analyze for quite some time. isthey are behind and that why they are paying a hefty price. a premium of a billion dollars or more for a company that has risen quite dramatically. it is a bold move and although we might see it expensive today, if it works out, we was a very cheap in a couple of years. legacy is maurice's after the last one did not work. fewe are on quite a legacies. alexi 4 or five. he keeps saying is going to retire but he does not. announced his obsession plans. his plan is to be around 2018, which is a very long time. hise has announced

retirement plans. the problems they were about is google and facebook. that is to the competition is and that is how you have to view these acquisitions. >> are we going to see many more digital deals? >> i think it is a good bet. we run one of these midsize deals every six months or so. we had aegis. it's a safe assumption we will have more. >> nick, is that a fair associate? digital is everywhere. >> what we're not talking about is the mobile side of this. how people will get onto mobile devices? we are seeing more revenue coming from this. they are finally going to the hold in the world which is ever more important. >> is it learning lessons in

bringing back some of the know-how to their older platforms or is it a company that will leave a load? >> would have been listened to the conference call it now and catch up with it -- conference call now and catch up with it. they said we will keep a separate and we wanted that magic that will be there from sapient to continue. dev only talked about cost savings of $50 million which is not much. what they are doing is taking some recognition from the fed you cannot integrate. is so much about the people and creative. it is an essential move to keep the departments and the magic through those people. cost-savingabout but attracting new customers which they struggled over the past couple quarters?

>> is about building the customer base and also about building the know-how. you do not have to do these things for cost-saving in the ad world. there's a long history in the advertising industry of leaving these agencies along, all of the be ad companies are really holding company. they have had a long experience with these agents is that they acquire. you do your own thing and tells at the end of the quarter how you did. that appears to be a model. >> do you lose accounts because you are not digital or you are attracted new customers? toi am coca-cola, do i go one person to say i want to be big on social media, or is it part of the bigger cap at? >> it has been happening as there is a breakdown of the accounts. you have one internal agency going to a number of different

credit partners. in the old days, you go to your credit partner and a parcell it out. crated is integrated campaigns which covers so many different types of social media. what we are seeing is recognizing that they were never going to get all the business from a company with dr. that angle. it will certainly be for them a strength in their boat to say let's get their full spectrum. i do not think anybody is going to give anyone company all of their accounts. it is to get more of the share of wallet. >> if you look at it in with that much more digital m&a, who is next in line? i know it is impossible to say. will there be another acquisition by publicis because they are lagging behind? >> there's another interesting question in addition which is whether we see long-term consolidation and in the ad space itself among the big

advertising holding companies? there's a lot of tart -- and there's a lot of talk after omni and perhaps they will try to merge with interpublic in the u.s. and one in japan that has done their deal and they are still out there is another big ad agency. there are two questions. who among the large players could be acquired? big holding companies in which there are four or five going to say stable? most people say the answer in both could is probably, we will see some of those activities picking up as it becomes more critical to build scale and the technological platform. >> more to come from publicis? now. not for it was a lot of money even for big company. we are on legacy number cointreau and maybe we will get a legacy number six. >> and seven and eight.

matt campbell and neck nick hungerford. chinese surfaces data shows signs of a slowdown. the pullback will test of the government's determination to pull back a more stimulus and they are headed toward the slows want true year growth since 1990. the u.s. supreme court where her argument indicates that will let as many jerusalem born citizens have passports and designating their place of birth as israel. the obama administration said under my is a long-standing the state department policy and is not taking a position. the city's eastern part -- posted lower than estimated offense. -- posted lower than estimated profits. they are europe's largest bank by value. still two come, a conversation

conversational with events cable. -- a conversation with events -- vince cable. ♪

>> investigators say the engine of the virgin galactic spacecraft that crashed was intact with no obvious signs of damage. they say the system a spaceshipt

deployed early. one pilot was killed no one was injured. what have learned so far? conferencele press was about something called feathering. richard branson himself explained it in his blog. it is effectively like this process that allows the spacecraft to slow down when it reentered the earth's atmosphere. it worse is that same way and crates a bunch of drag. what we know and what did they discover is that the mechanism opened twirly. how -- opened too early. have a listen. 2 in normal flight in these that extent that are referred to as feathers. after the space vehicle is launched and goes up to be apogee returns to the

atmosphere, the procedure is to move the feathers into a position where the entire body rotates in order to great more more drag as it reentered the atmosphere. >> favre in a nutshell. we know the fuel tanks, the images that were suspect, a lot -- the engines that were suspect , those are intact would suggest the problem was not there. when it comes to feathering, there are two things that have to happen. one is the copilot has to unlock and that was done. the second is that have to manually press and give the go-ahead for feathering to take place. moscow one and it was posted be mock 1.4 and that was too early. does it mean that was human error? they say it is too early.

it is interesting that will learned so far. they said is a statement of fact and not cause was done >> -- cause. >> we heard from richard branson that he is till interest in space tourism. have we heard from him in the last two hours? talking to someone in charge of being the independent for many years. he said, this makes me angry because the bottom line is that the commercial space industry has been resisting regulation and today have not been very transparent and the safety standards that they are applying. -- redundancy, triple redundancy and it looks like and 2is case if there were only step levels of redundancy. does a mean and they end of commercial space activity?

the people bought the tickets -- >> willis lower down? -- will is slow down? >> it seems likely. the people who bought the tickets are going to have to wait. we heard there from richard branson over the weekend and they will not blindly go forward. he said they will go forward if it's fixable. it will take time. it has been a while for space began 13 years ago when a guy went to the international space station thanks to the russian who took him up. i was there. there is a lot of demand for commercial space activity, not in just taking a highflying a supplementrists and provide nasa with new resources. >> isn't the first major setback? >> there was more earlier in the week and they are mounting. the fact we would launch into

space, space tourism as early as next year, i think it might be fanciful at this point. >> ryan chilcote staying of the story and we'll be following very closely. and profitss off soar. we bring you our interview with the ceo when we come back will stop -- come back. ♪

>> welcome back to "the pulse."

airlines and on to the low-cost and high. raised its profit go for the second time said the economic slowdown is working in his favor's. they have a new strategy for winning over the middle market and that's being nice. michael o'leary, the ceo, spoke to us. >> it is a reinvention. we have one of the price battle and a price war. the prize pedal and price war. we want to provide people with a better experience. we discounted prices for children traveling with the parents or business product and will want to move into the middle market. as we get a nicer and nicer, we are finding more of the customers are increasingly saying yeah, lieutenant ryanair. >> how is staff taking it?

i am not saying they were not nice but it is a bit of a shift. >> it is a shift. the people that wanted us to do it most is the staff. we put our staff in situations of conflict far too often. wilson we're ending the conflict and will not fight over you because the bag is and is too big. it is the reflective and complement the letters from customers how nice the people are and however for sure the changes are. it is working. they are coming back for better customer service. stepping it up. >> compared to last winter, how much more flying? bywith spec traffic to rise about 16%, which is a huge growth in the first half of the year. this demand for ryan air across all markets.

60% travel growth and would expect the fares to dip. over the four-year, the travel will rise by 9%. profits will rise by about 45% over last year. o'learyes michael talking to us on why his company is so great. other company news. they are swapping liquor brands. -- its fit percent of ju is giving its 50% of juklio. [indiscernible] monte is expected to raise capital for the shortfall identified during the ecb stress test. the lender is ruled out taking state funding and has done that twice in the past five years. a binding offered to buy the portuguese telecom from brazil's oy. the offer is worth $8 billion.

if successful, it would unwind a merger. the markets.n on jonathan ferro joins us with the latest. the divergence. when readinge pmi, of it. italian pm i'm, a significant disappointment. if you look at equity market, a disappointing start for this monday morning. ibex dipping into negative territory. in the untied benchmark down. the ftse down by 0.3%. last week, the stoxx 100 up. you look at the massive red and you will notice a bit of green and it is ireland. i will show you why. i wish index is up. you did in and a company you're talking about, ryan air. -- digdid in and it is

in and is a company you're talking about, ryanair. a huge lift for the full-year outlook. the approach of ryan air or is efforts thatof have bitten into profit that has helped his company? ryanair is looking into the beneficiary. i look at sterling. 5977.ound buys you 1. ahead of manufacturing. not -- manufacturing, u.k. manufacturing, not a big part of the economy that in the spotlight. sterling, the uncertainty of the u.k.'s membership in the eu taking a different dimension and the german press. angela merkel signaling pushes looking it as something that might happen.

the u.k. added towards the exit door. why we are opening this up, why the u.s. does u.k. government is crating this uncertainty. it resonates with the british public and they are leveraging. >> that is why they are doing it. they are saying it is bad for business. good stuff. the very latest on the markets. the first day in office. what is topping the agenda and also, attention jet setters, planning and the hands of a modern traveler. you can follow us on twitter. we will be back in just a couple of minutes and we have a really packed showed today. "the pulse" continues in a couple of minutes. ♪

>> will come back to "the pulse." these are some of the top headlines. for the first time, the german chancellors was concerned that -- u.k. might hold cameron promises to membership. the former bank of america

employee has appeared in court in hong kong charged with the murder of two women. it were found in an apartment. officeout of the indefinitely. the engine ofsay the virgin galactic spacecraft that crashed was intact with no obvious signs of damage. the defense system may have been deployed early. one pilot died and another was seriously injured. takeull investigation may months. >> we are a long way from fighting cause. we have months and months of investigation to do. there is a lot that we don't know. if we have the resources to go through. >> we have some raking u.k. data. it is much better than expected. it is common up for the month of

october at 53.2. anything above 50 indicates expansion. 53.2 is an impressive figure. inufacturing in general terms of gdp is not that big of a chunk in terms of the overall economy. u.k., theth the european exit for the u.k. is being talked about. according to a report, the chancellor is concerned that britain may exit the eu. book aboutote a angela merkel. how serious is this? up a's been building while. you have to deal with the starting point. she wants the u.k. to stay in

the eu. she has reached out to david cameron on the multiple times over the recent months to try and make that happen. this immigration issue has turned into a problem for her. that now with this morning she is trying to draw a line of how far she is prepared to back the u.k. government. >> run me through this. we talk about a possible british exit being a disaster for all of europe. she is interested in keeping the u.k. in the eu. up week as iis will do everything to keep you inside. not at any price is basically

what she is saying. she has hinted at this before. this is causing the latest quite a stir in the u.k.. merkel has of writing factors to consider. as much as she would like the u.k. to stay in the european union, she cites arguments such as the uk's free market tradition being important to the eu as a whole. she can only push that so far. ,isn't in the report she doesn't want to be seen as promoting an anti-immigration agenda in europe. >> how does this fit into her broader agenda of trying to

build up germany? about germany.t i think she is interested in keeping the eu together as much as possible. we're going to have a referendum catalonia. we have the referendum in scotland. reasons,s economic she wants europe to stay together read she has said this very publicly. she argues that europe can only be strong if it holds together. that sounds like a stereotype or a cliche. i think there is a real element to -- of truth to that. , there is only so far that she can go in backing david cameron. >> thank you so much for all of

that. tony is in berlin. he is an author of a book about angela merkel. also weighing in on the debate is vince cable. he spoke to jonathan ferro last hour. >> i am concerned when people start raising these issues. of view of the international business community which is investing in the u.k., they want to have certainty. in of the key certainties recent years is been knowledge that we are members of a single market and if they put their factories or offices in the u.k. that they will export goods and services to the european union. we have had anxiety expressed by investors in japan, china, and elsewhere about our future. so far, it has not affected our membership.

they are increasingly toxic in nature. immigration is making this more difficult. >> just a small point. to there giving lectures scots for wanting to leave and now they find themselves in this place as well. >> it is a contradiction. the conservative party thinks that the eu is beneficial. they have a problem with this being a clinical football. they are in a battle. that's what this is really all about. it is about getting reelected. that resonates with the electorate. had you fight that? you join the party. this is a problem that everybody has had. you do something to fight -- fight the more extreme parties. do we have any polls? if we were to go to vote now,

would we exit? how are merkel's comments being played out in the press? >> this looks like winning that. they are taking seats off the conservative party. these guys defected from the conservative party to begin with. the threat to the conservative party is there. this is also a threat to the labour party. they are in danger of being pushed out as being a third party in this country. he did not understand why this debate is being reopened. it resonates with the public and you can win votes i leveraging this debate. >> you can win or lose votes. if they don't talk about immigration, they may not be in power very much longer. this is the big problem.

the eu has four pillars of one of them is labor. when you talk about restricting immigration, it is a non-argument because it can't be done. the conservative party is talking about as if it can be done. merkel has been start about that. she has acknowledged for the very first time that the u.k. could be heading toward the exit door. whether you think this is right or wrong in the long-term, and the short term there are two no two ways about it. it increases uncertainty about what is going to happen over the next 12 months, and that is not what we talk about markets. it is not good for assets. >> in the long-term, there is very little benefit. >> can have that argument for another time. day foris the first europe's new commissioners in brussels. this is a look at what is on the

agenda. first of all, we are going to talk about digital and cyber security. is the new commissions main job going to be to convince the u.k. to stay in the eu? he is the right guy to try to do that. primethe longest-serving minister in history. dealsspent his life doing among governments. he knows that national governments run the eu. he is also the only candidate in the commission to offer to renegotiate britain's membership terms. britain and david cameron are vilified. now to have to work with them. in respect to do the economy? >> the commissioners look a lot like europe. politicaly europe's

rivalries. , it will beeconomy co-managed by a french socialist who is not a big fan of austerity. isre is also a latvian who the apostle of austerity. the result is likely to be something the middle. >> on the digital side, what can we expect in terms of tech companies? some of the unfinished business that is on the plate of the new competition to mission commissioner is antitrust against google and inestigations of tax breaks luxembourg, ireland, and the netherlands for companies like apple and starbucks. you also have questions of internet corporate governance and when the eu should have a full scale law that enshrines the right to be forgotten.

all of these questions will find answers in the next three years. >> think so much for joining us today. we will keep a close eye on that. is a globalow showdown and market turmoil affecting euros largest banks? ♪

>> will come back.

profits missed estimates. this we arewledge joined by the author of "the art of banking." richard, let's kick it off with you. what was the biggest surprise today? you know that banks have fines. we know investigations are ongoing. exactly. i think payment protection insurance in the u.k. is one of the big issues they have set aside. over $580 million is a lot. we have seen that with all the banks in the u.k.. this is still big considering the initiative that has been rumbling on for three or four years. david, let me come to you. how concerned are you with what we heard today? the big problem is they have the currency charge. they actually missed estimates.

what is the problem? i don't think they have been doing a bad job. we have a very challenging regulatory and -- environment. having that they are in thisulators investigation. i think it is difficult now given the fragmentation and the intensity of regulatory requirements that a bank can do other things. to reach a level of compliance. it takes time. at this point, i would say it takes money. there might be more fines coming down the road.

>> you're talking there about a number of challenges and increasing compliance. this?an we get over i know there are a lot of ongoing investigations. a year from now, can the banking industry but this behind it? is this something that will cross off quarter after quarter? >> it is very difficult to put the timing of this. the agreement with the u.s., they are reopening investigations. it might be just a year. it might be a bit longer. you have to be very proactive in dealing with this. you have to draw a line in the sand and have comprehensive agreements. ideally, it should be a year but it could be longer. regulators are getting more aggressive. we have seen this proposed in the u.k., to make them liable in

case of some proven wrong doing or misconduct. i think it becomes very inllenging for banks attracting talent and retaining. think this is a specific question or is it going to be more brought across the industry? they are one of us complex financial institutions in the world. is it better for banks to focus on things they may be better at than others? there is too much of a risk in being all things to all people. >> go-ahead, david. >> i think this is the start of intense de-risking and it getting out of risky business

and risky contracts. it is more acute because we have this global operation. we have to deal with several regulators at the same time. >> i wanted to get your take on china. this is something that we should not underestimate. discouraging and worrying figures coming out of china today. aren't the other markets doing that great either. >> well, yes. we can summarize the situation with 8% less sales in floorspace. real estate is the driver and that is cooling off. gdp in china.o everybody expects some interaction with the government.

the government and china has to balance this information and allow banks to lend more with in potential implication terms of bankruptcy down the road. cooling-off which can take quite a bit. terms of real estate, that will take a bit of time. >> in terms of the investigation, the u.s. -- lacks the u.s. will be bigger. we had citigroup estimating that the u.s. portion was going to be significantly higher than the u.k. element. billion, which41 is a very big number. who ise have any idea most likely to lose or put more money in than others? >> indeed. 500ave seen barclays million pounds is much bigger

than it today. beenood rule of thumb has a survey of the size of market share and currency transactions. citigroup, barclays, deutsche bank were all big in there. they might be more exposed to this investigation. --how should investigate his investors pick their banks? do you pick them where the economy is stronger? we talk about fines and that is important. they have to be in an economy with a can lend and continue to make money. one of the elements is in this challenging environment, the bright side has been private banking. they have achieved this sort of financial with the regulators are a better investment at this stage. there is so much unknown still.

exposure, terms of there is a stronger ability to withstand the changes. >> thank you so much. program, let'se find out why mercedes is teaming up with tesla to deliver the latest electric car.

>> welcome back. it is time for the new energy headlines. they are warning about damage to the environment from fossil fuels. the results are based on the biggest ever study conducted on climate change. there are risks of floods, drought, and the extension of species. angela merkel's government has just published a paper laying the groundwork for much stricter limitations on coal in europe. this may boost the price paid for electricity. the first mainstream electric car has tesla technology under

the hood. there is unlike motor and battery inside the hatchback. they teamed up with tesla to avoid the high cost of production. this car will reach german showrooms on november 29. of viewers, a second hour "the pulse" is up next. about that.king an apt for the modern traveler. about the web summit in dublin. we will have plenty to talk about in terms of digital technology. i want to get his take on the

legacy. it is going to be a packed show. stay with us on "the pulse or co -- here come

ways a u.k. exit. the issue puts businesses at risk. branson's space setback, there will be a search for answers after the virgin galactic crash. good morning. good evening to those of you in asia. welcome to those of you just waking up in the united states.

this is "the pulse" from london. it's get straight to the top corporate stories of the day. this comes less than six months after the megamerger with comic-con. are joined by ruth. this is the first time since the now defunct megamerger, we want to be in digital. sense thats been a they have been looking for something to get away from the distraction. that would've made them the largest agency. notthey are saying we are going to be the largest agency but we will be the largest digital advertising agency. shareholders did not seem convinced. if you look at the premiums, it

is a 44% increase. up 27%.seen this that is a big jump. shareholders and not so sure that they want to pay that kind of money. >> it seems expensive. it makes more sense. i will when they came on here and talked about it. that did not turn out the case. it was a very burdensome company. , this seems toe make more sense because that is where the money is. .> it is expensive it also seems like it is an easier deal to get done. i think that there is some of that playing into this as well. the shares were down 17% for the merger.

they had to cut their sales forecast last month. they're hoping they can get more growth from digital. >> where does this leave them? they intimated that the megamerger that never happened was going to be his legacy. is this going to be his legacy? putting this ad agency up? i think maybe this is a step toward building that legacy. who knows best and mark --? more.may be the volumes of the highest in 10 years. the numbers are above 303 billion a. that is huge. i am sure that more consolidation in the media space. >> thank you so much, ruth. story,on to another big

that is the brexit debate. on the merkel can understand why the british are reopening this issue. let's bring in jonathan ferro. you spoke with vince cable today. >> he was in fighting form. angela merkel was at least at balancing the u.k. exiting the eu was probable in itself. secretary, business it is heightening concern for anybody investing in the u.k.. take a listen. concerned people start raising these existential issues. they want certainty. one of the great certainties in recent years has been the knowledge that we are members of a single market and that if they put their factories or offices in the u.k. that they can export

their goods and services to the european union. couple of years we have had exactly expressed by investors in japan and china and elsewhere about our future. so far, it has not done any damage. it is becoming increasingly toxic about immigration and that is making this more difficult. >> he called a toxic debate it is a political football. party have been marginalized on this issue. they are not getting traction with the electorate. that is why they are getting support. they jumped on a popular theme. it resonates with the british electorate. these existential questions that he is talking about will take center stage at the next election. >> it certainly will. you've re: got a seat in the

house of parliament and we've got another election in two or three weeks time. they are likely to win again. that would be two seats in the house of parliament. this will gain traction. it is being acknowledged by the european union. it is a big debate. politics is not all sunshine and rainbows. immigration has become a little bit of a dirty word. it is an issue that some parties have gained traction on and others have not. when you are the conservative party, you look at the party gaining traction on this issue, what are you going to do? that is why the conservative party have put in this issue. at as long as that issue is the top of the agenda, this is likely to get your in bigger as the months role on a ahead of the big win next year. >> think you so much. anybody has seen

sunshine and rainbows for quite some time. aat is the very latest on brexit. it is a long way from find out what caused the fatal test flight crash of virgin geoeye kicks spaceshiptwo. what we learned this morning? we learned a lot about feathering. i had never heard of this. richard branson himself described it in his blog last year. itis a slowing mechanism as enters the atmosphere. it creates drag so that slows down and functions like a shuttlecock in badminton. it did not function properly. have a listen. >> this is a space vehicle in normal flight and these two tales that extend back are

referred to as feathers. launched vehicle was and goes up to the apogee and starts to return to the atmosphere, the procedure is to move the feathers into a position where the entire body rotates in order to create more drag as the vehicle is reentering the atmosphere. this is a mechanical process. the lock was unlocked for the feathering process. that was done by the copilot. you're supposed to press a lever that begins the feathering. that did not happen. it happened on its own. that is the big issue. the spacecraft has to be moving faster than it was. it was only going mock one. problem is a redundancy problem. we have at least one failure.

i was talking to the head of the , hependent safety office was saying that is the problem. there is not enough redundancy. spaceflightal industry is going to be transparent. that is an issue going forward. >> what does that mean for the future of space tourism? >> it is going to be a break. it may not last forever. this is a statement of fact that this feathering problem and it is not a statement of cause. that could take a year. people including justin bieber who are waiting to fly that of paid a quarter of million dollars are going to have to wait at least one year or longer. richard branson was talking was theis said this innovation that made their spacecraft possible. that was the breakthrough.

tourism began a while ago. it's been 13 years. there are a lot of people that want this. , the spacere agencies need private companies to help them do the basics of's .est -- space travel it is difficult to forecast when this is going to start again. playsll ahead, ryanair nice. we will talk about their new space -- strategy. ♪

>> welcome back. low-cost is aiming high. raised its profit goal for the second time. the slowdown works in its favor. that is sending shares soaring. they have a new strategy for winning over the middle market. the ceo spoke to us. >> this is a fundamental re-invitation. we won the price war. we now want to move into the middle ground where we are providing people with a better experience.

we discount prices for children traveling with parents. we want to move into that middle market. when we get nicer and nicer to our companies, we find more and more are increasingly saying we take ryanair as the better alternative. >> how is the staff taking it? >> it is a bit of a shift. the staff wanted us to do it. we'll put our staff in a situation of conflict with customers. we are ending the conflict. we're not going to fight. the people who like it best are the staff. reflective in a surge of copper mentoring letters from the customers. it is really working. people are coming for the prices and coming back for the better customer experience. we are stepping it up and

>> compared to last winter, how much more flying are you going to do? >> we expect traffic to rise by 16%, which is huge. there is demand for ryanair across all markets. we expect affairs to dip slightly. over the full year, the total traffic will rise by 9%. 4% butsts will rise by profits will rise. oliver, great to have you on the program. is probably the best marketing person in this whole wide world. they're doing good. they are upping their forecast for the second time this year. that simple when the economy goes down and people know they can book with ryanair.

is it true? >> if you look at the past down that invite them did mean that people tried to go to low-cost. , the rate atare which they were taking share increased. >> the world is changed. another example of a poor economic backdrop area i think they will be able to succeed. look at the traffic numbers they are showing. they were up 6% year on year. localk the evidence is carriers can take more share when times are tough and the more expensive carriers are having to restructure. >> how are they faring compared to easyjet? forget air france. easyjet is seen as a little bit

more friendly. that is why it ryanair has had to play catch-up. >> they are trying to mimic easyjet's model. the network they are offering in the product they are offering and the kind of approach they are taking to revenue in terms opportunityup, the is to be able to imitate a lot of what easyjet has done. areas.ve copied a lot of they are holding their cost-based down and are offering lower fares than easyjet. at the end of the day, if you've but it islar service 20% less expensive, that is what they are aiming for. >> du think ryanair will be busy -- better than easyjet? >> not really.

easyjet hase that produced the models that everybody wants to copy. i think it would take them many years to catch up with easyjet's brand offering. a biggeras got capacity in a primary airports. i think it will be a profitable strategy for ryanair. they are coming from behind. that is why you're seeing the shares up so much. muchve me a sense of how the low oil prices benefiting these companies. this is giving them a big boost. >> many of them are hedged. this, they almost lose out on the oil games. as we wind forward, their

hedging forward to a time and they are looking at low rates. you would expect to see some feel benefit coming in toward next year. the euro is depreciating. it is not quite as simple to see an immediate benefit. >> are they adding enough routes? capacity bygrowing 11 or 12%. this is also about frequency on the same routes and this is a change. actually, at least half of the capacity they are putting in his offering more times a day. this is a proven thing to do. make sense because there is a market for that. you could open a new route and the airport could be away from where you want to reach. >> they are mimicking the easyjet strategy.

you start off with limited frequency and then you increase the numbers of time a day you are offering the service. >> great to have you on the program. thank you for coming in. quick turn toa check. this what we are seeing on the markets. this is all about divergence in terms of the dollar rising. you can see 12494. this is on speculation that the federal reserve is moving toward raising interest rates at the same time. japan and european central bank is also of note. for china. they had a gauge this morning on services and that fell to a nine-month low in october. that may signal a slowdown.

up next, what is under the hood? find out why mercedes is teaming up with tesla. back to the future fans, rejoice. flying cars could be a reality sooner than you think. ♪

>> the designations is warning about irreversible damage to the environment from fossil fuels. this the biggest ever study on climate change. the rest of floods, droughts, and species extinction increases. germany is turning against coal. anglo merkel has just published a paper laying the groundwork for much stricter stances on coal in europe. they will have additional supplies. the first mainstream electric car by mercedes has tesla tech under the hood. says it teamed up with tesla in order to avoid the high cost of production. back to the future fans take note. flying cars may sound like science fiction, but they are a step closer to reality. bird?it a

is it a plane? it is a car. the flying roadster is the closest anyone has come to a vehicle made for road and the sky. it runs on petrol. it is about the same length as a luxury car. it hits 124 hours. it is no slouch. it has a range of 430 miles in the air. it can fly. traffic jams could still be a problem. flying roadster needs at least 200 meters of clear road to take off. regulations may stop this car from getting airborne in the u.s. and europe. the prototype could not fly in austria due to aviation rules. those behind it have identified china and australia as potential first markets.

you can still only imagine owning the prototype, they hope to start manufacturing in the next couple of years. the estimated price is just over $280,000. >> cheap. you just need miles of strip to land on. this is the revolution that we are looking at. next, we look at how a new app puts planning in the hand of the modern traveler. this is the biggest ever ipo in the middle east. if -- a why not even fat walk and derail it. you can follow me on twitter. we can talk about flying cars. we have plenty of stories and we have coverage on "the pulse." ♪

>> welcome back to "the pulse your co we are in london. these the top headlines today. anglo merkel has voiced concern that the u.k. might leave the european union. theirs according to newspaper. the u.k. prime minister promises to hold a referendum if he is reelected next year. a former bank of america employee has appeared in a hong

kong court charged with the murder of two women. they were found in a 31st floor apartment. e-mail reply said he was out of the office in definite and recommended contacting someone who is not an insane psychopath. engine ofors say the the virgin galactic spacecraft that crashed was intact. system may have been deployed early. the other was in seriously injured. the full investigation may take months. >> we are long way from finding cause. we have months and months of investigation to do. there is a lot we do not know. there are extensive data sources that we need to go through. let's check in with the markets. jonathan ferro has more. it is a packed day.

>> there is a lot to talk about, francine. there are some losses across europe. if you look at this map, you can see a bright spot. is coming out with some solid numbers. they are lifting profit on the someer by 14%. that was performance by michael o'leary. stirling is up. that.ps just below manufacturing data it comes in. it is 53.2. if you look at the export orders index, that drops to 48.3. they are blaming a weaker europe. that is the only currency that is. the yen has taken another

beating. the dollar is on a tear this morning. >> thank you so much. that is a good way of putting it. jonathan ferro has the very latest on the currency swings. tom keene joins us from new york with a preview. what we're looking at today are the midterm elections. >> a lot is going on. the conservative republicans are doing better than the liberal democrats. the president is a democrat. unusual.f that is we will have a lot more coverage on that. jan clifton will join us. we will talk about congress after the elections. we will have our coverage through the day and on to with allwith our show "

the lip to midnight. today we will focus on the geopolitics of it all. we will talk about the four fronts of america's geopolitics. we are really looking forward to talking to dr. bremmer. carl weinberg will join us from high frequency economics. this is a very important interview. on thebeen out front many challenges that japan has. this will be our first chance to talk to dr. weinberg. history was made last friday. >> i am looking forward to the interviews. this is the first time we have heard anglo merkel say you are on your own if you start touching immigration and the free movement of labor. orderry kissinger's world

and the last part of the 6:00 hour we will spend with dr. bremmer on the history and future for america and europe. merkel's front and center in that debate. >> thank you so much, tom. "surveillance" starts 25 minutes from now. our next guest is hoping to provide a nap. they help you book local holiday adventures from your mobile phone. co ome to "the pulse your this is not booking flights. this is giving you experience. the weighted we travel has dramatically changed over the last six or seven years. >> we started with this simple idea. when you are back from a holiday, you don't remember your flight. if you do, it is for the wrong reason. you might remove your hotel if it was very nice.

you remember the things you did. there is no brand for that. of theseno booking third segments. it is a very fragmented market. it is difficult to put together all of the interesting things you can do all around the world. there is not a service that you can use today in london and next year in paris or peru. >> there is one question that we ask all of our smart guys that were contact. what's more important, a genius or an idea that may not be so genius but is executed to perfection? >> i think it's execution. i'm not saying that everyone will share that. to us, the key thing is that we

were able to deliver on our promises. that was the crucial thing for us. we wanted to get the whole thing running and get the funding. >> what's more difficult? is getting funding the most difficult? that is a different journey. at the beginning, it was about showing a product which made sense. theas difficult to convince first experiences to come on the platform. the apple is nowhere to be seen. when we were able to convince supperers of the last that they could sell their guided visits on our app. that really gave us the initial credibility. nowadays, we are nine months down the line.

it is about showing there is user engagement and the metrics. there is satisfaction at the experience we offer. see my travelt i changing over the last 10 years, you don't look at the same things. we are in a recession in europe. who are you targeting? >> not just a specific demographic. it is not just about youngsters read we have a lot of customers who are in their 50's. they want to take control of their experience. there are still travelers interested in getting a package tour. those who want to the can choose the best hotel for their likes, the best flights for their needs, and the best experiences. >> is there a company that is

not operating your space that you could look at with admiration? mythere is a similarity in position with hotel tonight. they have a very curated approach to the things of they offer. they only give you a selection of hotels. differentive you 3000 tours of the vatican. we give you two tours that we trust. >> it is great to have you on the program. thank you for joining us. up, dublin's networking bonanza. island hopes that one of the most important tech events will put them on the map. ♪

>> welcome back. we are live from london on bloomberg television. let's head to the middle east publicis is the biggest offering in the world. they raised $6 billion in the ipo. we have more. it is really a line mac -- landmark sale.

>> this is the biggest ever ipo in the middle east. from 2007.s dubai this is the second biggest ipo in the world this year. they have raised about one quarter of what alibaba raised. they do sit there in the number two position ahead of citizens. has had tremendous demand for shares. it was a slow process. so in about half the stock they were hoping to sell. the money that they needed. they could have sold about $58 billion worth of shares. that was 10 times more than they were looking for to begin with. they are up by about 1/5. the oil price drop has unnerved

some investors. it seems to been a success. slighted byt be ncb. it all comes down to sharia law. birthplace of islam. some say that the assets do not comply with surreal law. -- sharia law. banks could charge interest and things like alcohol or gambling. ncb says that it is looking to sell $38 billion of assets that are non-sharia compliant. some analysts say that is easier said than done.

everybody will be able to invest in it with a click. >> thank you so much. tech.talk thousands of people are gathering in dublin for the web summit. it is only biggest tech events in europe. joining me is the ceo of reputation.com. have you on the program. what is the next big thing? if i have been in the tech world for some time, what is the next big thing question is it wearable technology? is >>ething i haven't heard of? we saw last week the results from twitter. twitter is slowing down. it is not a mainstream product. newbet they placed is on a

set called fabric. these are development tools. it is a set of developer tools that they think people will adopt. it will be the ad network for the app network. they are hoping to do dominate what google has done. toolsne will use their >> what does it mean for the consumer? >> i am looking at the summit for a lot of engineers are upset entrepreneurs and we are going to be a docking fabric or not question. when meets the consumer is not much. app developers have a hard time monetizing their apps in building apps. toric is the first attempt make that much easier. that is the next new thing in the gets of the internet that i'm edged in.

>> that is not going to be a game changer. allow me to see if i like twitter or not. is apple pay a game changer? i think the qualification of , the stuff that fuel. the 90 what my activity level is. tells me how hard i am working at how much exercise i am getting. they are still clunky. they're not all that advance. once they start to get approved devices, yous -- are going to see an explosion of information that we get about

ourselves. we will get a much better understanding of ourselves. that will lead to personalized health. we are not treating a woman, we are treating francine. had we tailor our medicine? benefit a lot.o >> i had one of those. i had to get rid of it. i was too embarrassed. i was not walking fast enough or working out enough. >> you were getting negative feedback about yourself. >> i tried a bunch. rex these are still very early days. measure more things than they can report. >> this is interesting. we talk about wearable technology and health. this will be for 10% of the population that was to get fit? can everybody start getting involved? as expensiveart

and esoteric. eventually, you will hold a cup or glass and it will tell your health it will give you a glucose figure print. it will permeate to the vast majority of people in the developed world. the developing world is doing a lot of interesting things when it comes to health on the mobile phone. i think the markets are so unattractive to large cap and small-cap companies that they are focused on the developed world first. >> we often see the world in the latter sense. what is the next big thing in tech? tech,doesn't cut it in it's just not going to survive the next five or 10 years. we moving so fast that the

situation, it is just not going to work out. i get a question. i cringe. what is your gravity strategy? digital is everything now. when the were signs for a company is having a chief digital officer. it's everywhere. everyone has to be the chief digital officer. digital has to be everywhere. what is happened in the last broad back ofe the economy is going online. uber isn't example of how the broad back of the economy works. travel is moving online. is an inevitable cloud of awesome coming. but, if you're not in that

space, are you going to fail? if you're a big company and you're not on board, are you going to push off? >> you are going to have a huge disadvantage. off-line businesses like shipping. i can tell you it is a big disadvantage. large companies that are nimble do come on.hey ford is doing a great transition to the digital age. these are companies that are really using an innovating technology that brings the advantage of the internet to bear with businesses. customers, from your the ones that don't do that are going to use market share.

>> you have a new book out. at enough i'm supposed to talk called "theit's reputation economy." this and i amread not sure i have a digital footprint, then i am toast? >> it's how to turn a big data into revenue. >> big data is the thing. >> this will teach and do that. >> think you. that was very comforting. we are back in just couple of minutes. ♪

>> let's bring in our middle east editor. the supreme court is getting in one of the most delicate issues. >> the issue is jerusalem. boy.lates to a 12-year-old he was born in 2002 in western jerusalem. he has two american parents. got their passport they were upset to see that it only said jerusalem instead of saying israel. there was a big fuss. congress said in that situation the parents want their children to say jerusalem, israel, that

should be the case. the state department never enacted it. jerusalem for israel is an undivided capital. the eastern part of the city, the palestinians see as the future state capital. even meddling in something like beingas prevented from negotiations. the policy oft having no policy when it comes to jerusalem. >> thank you so much. pulse."it for "the keep it right here. "surveillance" is next. you can follow all of us on twitter.

i will see you at the same time tomorrow. have a great afternoon.

scramble to get out the vote as republicans argue how conservative their majority will be.

the midterm elections are tomorrow. the dollar ranges higher, other currencies lower. cashless society. good morning, everyone. this is "bloomberg surveillance." i'm tom kean. -- tom keene. are from election. are down to one last day. anotherans may win seat to take control of the senate. , republicans are expected to expand their significant majority. turning to the crash of richard branson