>> singles a day. alibaba beat last years record for the biggest shopping event. >> diplomacy reset. president obama and xi jinping together. >> mr. obama takes a side on net neutrality and called for an open internet. what impact it will have on european businesses? ♪ >> good morning. you are watching "the pulse.".

i am guy johnson. >> i am francine lacqua. alibaba breaks another record. china's e-commerce giant drew record sales on singles day, the world's biggest shopping event. it was $5.9 billion in last gotten in 14was hours. >> ryan chilcote has the details. this year will see alibaba takes is largest ipo and now it really going to make it clear what singles day can deliver for it. >> alibaba's master plan to make even more money out of ingle's is to take a global. the most interesting things. aliehave alley express -- xpress and another website that operate outside of china. press is the biggest in

russia and brazil. the idea is to get those websites into markets around the pe us into this buying frenzy which is singles day, also called double 11. the problem is when they get into markets like the united statess where you have amazon and ebay are already entrenched and it was a survey done that showed despite all of the attention that alibaba's ipo got , only two out of three shoppers had even heard of the company. they have work to do. the good news is that analysts we have been talking to say alibaba which has shown a readiness to stand through acquisitions to take market shares has $18 billion in cash. if it wants to do that, if it wants to try and make singles something that francine

celebrate as well, even though you do not have to be a single. 60% of china that took part in singles they were not single, they were married. only 25% were single. they have the money to buy that publicity. everything and i usually celebrate its one way or another, it is usually take. alibaba has created a singles day and turned it into their advantage. a company cashing in on celebrations in this way. >> alibaba's problem, the reason why they commercialize this singles day holiday which was -- 1985 students and they notice no one was buying things. that is why they latched on to dublin 11 or november 11. debeers had the same problem diamond deposits being

discovered in south africa in the 1870's and the diamond market is really in trouble. they came up with idea that you need, through an advertising agency, need a diamond as part process.gagement ring engagement rings were quite and luxurious and to have as part of a marriage proposal and let alone having a diamond with it. they came up with a diamond is forever. 1948, a diamond was essential to have part of the marriage proposal. more than that, when they discovered it was a planned thing, when in the went out with the man to buy the diamond ring, she always chose a cheaper rent. they invented the idea that it should be a surprise engagement ring, where the man buys it himself because studies showed men will spend more.

it helps to debeers. i do not know what it means for alibaba with a global audience. people trying to get into cyber monday, black friday, into the pre-christmas season. >> thank you so much with the parallels between singles day and what debeers did with the diamond market. if a woman chooses her engagement ring, it is cheaper than men. impulsive buying is more a man's seeing. >> i can assure you that. later on alibaba and betty liu will be speaking to alibaba's executive vice chairman and that is coming up on "in the loop." it is here on bloomberg tv. they see a singles and a surge. let's turn to be sales.

co-cio, very good to see you. are -- i want to know what your investors are saying to you at the moment. what i am here it is you have had a 20% pop in the past week and people have invested. when you make these kinds of returns, maybe time to lock in the profits. are they in the short term? are excited, they e-commerce story. when you have something as big cap,ibaba with a market that is what happens. when you look at the stock today and stocks trading at 20 times, the good news is there in the market caps. what we saw yesterday was unprecedented which is a phenomenal response for singles day and the response they got

from outside of china. about is aa is all not justion platform, the chinese consumer, but outside china. >> if you got alibaba on your account, would you like the past few weeks was mark >> it is a good stock and one would like to hold on it for a number of years. the way we look at it is like e-commerce is likely to grow in the next couple of years. you have got to be mindful of valuations. a chance to take money off the table. itwhen you look at alibaba, has a lot more rivals. how like he is at that alibaba takes off? when you look at the website, it is poorly designed to western tastes. it looks like a cheaper version of internet e-commerce we already have.

they capitalize, you see it coming up. what alibaba offers is an opportunity to buy chinese goods. shoesok at 60% of the produced in china. it follows that. there will be people who look to do that. where is the biggest opportunity that we will get you a glass of water. the biggest opportunity still in asia or in the united states or in europe? could they brca2 the indian market? is there a better opportunity? -- could they board into the indian -- break into the indian market? >> when you look at the way that the chinese shop, we had someone

who worked very closely with the department stores and they were saying the problem that chinese department stores have is people shop so differently. they will post something they wear online and wait for responses. said, theer what you first frontier, domestic markets would be to asian markets. it is a big market. you have close to 200 million internet users. they would look to conquer india, indonesia. have a presence in the u.s. and europe. probably look to find those in a 3-5 years from now. let's not forget it is [indiscernible] , should we know about how

much the chinese by? know about howwe much the chinese buy? chinese are very different in how they shop. they look for deals. how much do westerners understand their potential and the drawbacks? , it's a common across lot more value conscious. i see that in eco-source. , i think thattime is really something where alibaba comes into play. you have goods offered at a reasonable price. everybody is excited about what you have done. >> thank you for that. rahul chadha. here is what -- >> here is what is else on our radar.

the u.s. a u.k. joined the european union with threat of sanctions against your following russiaameron -- against following david cameron's remarks. vladimir putin has denied military involvement. >> preparing to reach settlements this week with the u.s. regulator, according to a person with knowledge of the case. poisedopean authority is to reject government this week with six thanks including citigroup and hsbc. are beingr of banks sued by u.s. investors. a story that is going to be worth paying attention. are suing the operator of a ship that they have had in the past. -- are suing them for the relationship they have had in the past. we are going to televise net neutrality.

>> we heard about president obama on open internet and he for stricter rules and how it will affect europe. that is after the break. ♪

>> welcome back. the company news now. according to one russian handset retailer, prices of apple's iphones are the lowest in europe. the countries as finance minister said there's a state fund to protect against the slings and commodity prices. the man who designed the fund said the request runs against this rid of the reserve. third-quarter net profit that beat estimates. it will list its 2014 outlook. indices higher fourth-quarter production for oil. obama has taken a stand on net neutrality announcing his proposal for an the internet & because

cable companies. hans nichols has the details. i am curious, why humans the statement -- and why he releases statement when he is already in asia and feels the need to get more aggressive on it. timing, that is unclear. he is putting pressure on his fcc which is an independent agency and putting pressure on them not to have any fast lanes or slow lanes as siding against the cable company and for the content providers, the netflix all the world and smaller companies. here is how the president tried to break down believes in the video message he believed while he was traveling in asia. >> i am asking the fcc to reclassify the internet under title 2. them to recognize for most americans at the internet has become an essential part of everyday communication in everyday life. >> i am glad we have a chance to

and theut title 2 markets understood. you saw companies like comcast, time warner, at&t, and verizon, there shares declined and some of them including at&t threatened to go to court over this and take a legal challenge to the potential new ruling. congressional republicans are siding with the cable company assay obama wants to regulate the internet. take a look at this tweet from ted cruz a he is a conservative from texas. words and ighting suspect we'll will be hearing more about this and we are just at the beginning of the battle. fromme great comments companies like comcast as well. from a european expect just -- from a european perspective, compare and

contrast what we are seeing what we are seeing and what the debates look like in the united states. it is centered around regulatory authority making the internet more of a public utility. it seems to be earlier here and eating done and the parliamentary level. -- it seems to be done earlier here and done in the parliamentarian level. a leading to net neutrality, no fast lane, no slow lane. that was not codified it and figure out how they will implement an different member states including germany have different views. at aa merkel was asked conference about a month ago and she is really kind of sticking away from really weighing in on really she is for net neutrality or against it and what she said is you need to increase a broadband capacity before you can make a decision about fast

lanes and slow lanes. a combination of member states waiting for the eu and brussels has not codified but they are heading in the direction net neutrality. the news for netflix on the continent as well as the u.k. >> it will be interesting. the new commissioner taking over , an awful lot of work to do to say the least. i am fascinated to's. -- i am fascinated to see. cold war warning. why the british prime minister is threatening sanctions against russia. ♪

>> welcome back to "the pulse." past the hour. that's find out what is going on in the markets. talking to mr. jonathan ferro. >> very polite and this morning. the dax is up 0.3%. the ftse has gained. the 40.d spain, data on

we will talk of vodafone. that is the big mover on the ftse. let me get it. there we are. almost 5% higher because things are not as bad as some people thought they might be. by 2.6%mate was down and they raised their guidance at the margin, just a little bit. enough to boost expectations higher. when i did in and look at inbers -9% in spain and 9.7% italy, that is stabilization. paint a pretty picture of business for both spain and italy for the likes of vodafone. the fx market, the big mover. the swedish krona is norwegian krone. subtly, swedish krona as getting stronger on the back of

inflation numbers, not good, but better. not as dovish as anticipated. one of the movers. i want to draw your attention to this very quickly. the euro versus the swiss friend. -- swiss franc. the swiss national bank does not like it at all. we are 120.25, two-year lows. that is the gossip in the market right now. >> thank you very much. jonathan ferro with the latest. last night, prime minister david cameron gave his annual speech in london and delivered a certain warning to president putin at this further action that would destabilize ukraine. >> grave danger to the rest of europe. here in this building, with its history shaken by the blitz, we should not need to be reminded

by the consequence of turning a blind eye when the countries in europe smaller -- bully smaller countries. beach, were on this are joined by our guest. the prime minister seemed to take a harder line on russia than he usually does. true. that is a lot of people saw it as a heartening. he refused to be drawn it and to the cold war, and the garbage also made a few days ago and at the end of the day the sanctions at the moment are already quite tough. theme have been asking for to ease somewhat. the prime minister's words suggested any easy that any easing is a long -- any easing is a long way. >> we saw the pictures all the she did not have

an opportunity to change on his way back to the house last night. >> no, the prime minister was forced to leave the speech early to go and vote in parliament. around the fact he had promised a vote on the arrest warmer and. the package of measures he voted on did not include that which was a consternation and more importantly among some members of the tory party. ?> what happened why did we end up in the situation? what was the strategy in how she thought it was going to work? people are talking conspiracy. and i think it was more of a lack of organization. vote, which is a 35 measures, only effectively voted on 11 is valid. it is binding. it is a technicality.

>> a great story and we will keep following. svenja o'donnell with the latest from the u.k. -- an italianyou chef. >> we speak to him exclusively. ♪

>> welcome back to "the pulse." i am francine lacqua. >> i am guy johnson. obama has beent meeting with his chinese and russian counterparts on the second day of the apec summit. obama and putin held an informal discussion. no official talks between the leaders are scheduled. >> president obama has called for the strongest possible rules

to protect the open internet. companies like comcast and verizon and at&t have been against net neutrality and companies like netflix and yahoo! agree with mr. obama, who ond there should be a ban so-called fast lane for web traffic. andhe captain of the ferry south korea that sunk will be jailed for 36 years. over 20 people died. -- 200 people died. >> let's talk about something different. the chinese crackdown on corruption has hurt cognac makers. what has been the impact on the chateau owners? apple reporter traveled to find

out. -- our reporter traveled to find out. >> the vineyards reduce some of the world's most famous red wines. last year for the first time, one of them was used by an energy company. she runs it. keeping the quality of the french wine and providing the chinese axis to it. about 20 or 30 people production. >> the chinese wine market has soared over the past 15 years to nearly 14 million drinkers. but crackdown on corruption in a little given hangover. she wrote officials. exports are suffering.

government wants to control the consumption. >> so far, it, -- has not stopped the chinese from visiting the vineyards. today, it is only 100 of them. >> i have one or two of the chinese. >> she now advises her clients to buy shadows that make more affordable line. , but thegh-volume [indiscernible] >> many believe the drop in exports will not last. willhinese investments help more french vineyards resist growing competition. is not the chinese, it will be somebody else. for now, it is a them. those who sold their shadows are happy to have sold them. are happy tous

have sold them. chris it is time for wine tasting. from alignment to food, let's focus on food. he is the patron chef at his own restaurant in italy and the author of the new book "never chef." skinny italian you are wearing the most famous chefs in the world and you are number three in the world. is it difficult to find inspiration today in and day out? >> it is not difficult if you live your life as every day, like you say, if you live your life as a dream, the passion comes through and for me it is like contemporary art and music.

art became my landscape of ideas. that is the major point in the focus. andt an idea from the art maybe i inspired them. i do not know. camera shooting here to get a look of the food. that looks like -- >> it is. >> a psychedelic of view. >> not flame to grill. >> the titles are amazing. the tides are works of art themselves. went deeplyok, we into all of the stories behind every dish. creativity is creativity. not just we are going to the attention as sauteing -- kitchen and sauteing onion adding meat. >> that is what i like. [laughter] >> ok.

we think a lot and sometimes as i explained in the book, it has become a gesture to help people. cheesemakers,s, [indiscernible] that is one of my favorite artists. inspired by this spring painting. >> that is what it looks like. >> we transform the side dishes into color. sauce.ad becomes -- -- beets became a sauce. onions butu saute your purpose is a lot more. art/design/good taste. you are like the renaissance man. >> wow.

>> is a really told me that. something like that. -- they told me that. -- something like that. the way you think. fooday you approach the that is different. creativity is creativity. whether creativity in the 19th entry or down, i choose that. that's covered is not the trendy cover -- that covered is not the trendy cover. and thee done renaissance in the 19th century or now or on a university. it is about creativity and the recipes added the -- at the end. >> we talked about designing a watch. a crater the man who can branch out into all other different. you are not only a shift in your mind?

>> in my mind, i am a chef. i love to think. and i'd love read to get deep into things. i love to touch the paper and make the visible things. if you have camouflaged as a dish and reading the book also picasso, it is all about that. and is very important and we grew up for that. >> i am curious about you saying "for us." "us" and "we." the team is the most important thing you have to stop the team is modern. we are 40 people for 20 it

covers. >> a pretty big ratio. you talk about "we" as well. you see yourself as an investor. you are an italian chef. -- you see yourself as an abbasid are. food is a way of life in italy. -- you see yourself as an a mbassador. you have done different things with food. >> is important to seafood in a the greeks have said we eat to contemporary way. ,ive and the romans switched it we live to eat. italy is like a passion. , the pope andnow pope francis and now is amazing. team is anl soccer disaster right now. if you screw up with her grandmother's recipe, is a big

problem. "never trust a skinny at how you chef " is ironic. we are chefs. we cook food. , we know how to think, but we are still chefs. we have to create good food. >> thank you for that. we want to get more of your take. massimo bottura stays with us. up, find outming how the u.s. helped to build the most accurate to watch. talking to watch and designers. ♪

>> ok, welcome back. you are watching "the pulse." as far as watches ago, it may take a beating. the atomic watch has been unveiled as the most accurate timepiece. seconds every thousand years. we'll take the 1.5 seconds. tom gibson reports. an over,tains

microwave, and a laser developed by the u.s. department of defense. this is no ordinary timepiece. it is the world's first commercially available atomic watch. it is atomic for a reason. itwhat makes it special is is the most accurate watch in the world. it takes the debt it tells of the right time. >> it is not sold to just anyone. uses andhave military buyers have to be vetted. inside, you will not find indian chamber with a gas heated.heated -- oven >> i've heard the microwave oven.

it has the frequency out [indiscernible] that helps with the accuracy. >> to run around a large atomic mop, there are move faces -- on faces. amazing.s the technology inside is quite amazing. is limited ifime you want to buy one. only 100 are being produced with a 15,000 pound price had. -- tag. >> i would buy one. he has made some the most accurate sports watches around. the only way to calibrate sales is with the atomic watch. is hundreds of times more accurate than britain's most accurate watch.

>> we are back with massimo bottura, the author of a new cookbook. we were talking before the break about the fact you are planning a watch and you see yourself as a lover of all design things. after watches, what will the next? would you be interested in a line? >> i would love that. if it is coming, it is coming. i liked craig glasses or like elements that can be used in everyday life. to have a sense of unity around you and design for me is very important. >> does it mean the great designers can become shy -- chefs? >> i do not think so. i am a very good friend with a designer like pierre.

we talk a lot and we have a great relationship and stop i pushing them to have this kind of impulse to arrive at the table with the right feet or chair, has to be sitting very well and stand very well. i am asked to sit for two or three hours and they have to be very comfortable. those kinds of things that are very important. yourwant to talk about sense of humor. without chief executive officers, and any lot's they -- we -- we have shown have chief executive officers coming in and they say a chef is the ultimate ceo. even the title of this is quite funny and fun filled is it your motto?

>> is a way to say always, we are chefs, we are not like superstars. everyday, hard work, hard work and a little bit of talent. like very important for me before, as i have said and the way you touch with reality in every day. weyou start the mill about are -- thinking about we are chefs and the ego, you have to use the ingredients, not to the ego. >> what kind of leader are you? you have 40 guys in the dotaurant and people, how you translate your kind of vision and creativity and desire to produce food that looks like this and to a leadership strategy?

difficult.ry the first thing you have to do is build the team. the team is everything. experimenting [indiscernible] or something. exactly. that is another point. waking up in the morning and going bed at night and noon time, doing what you choose to do. through passion is the motion. this kind of job is about the motions. the three elements that you have , passion, humility and dreams. humility, you stay with your feet on earth 11 everyday life. -- and everyday life. passion makes you feel not stressed. you're always under pressure. it is every single lunch and dinner.

coach?you almost a do you did a pep talk to your team? every night. after service, we analyzed the service and see if everything went well and what was wrong. on the outside, they do not have to feel anything. much -- the ideas come together. the idea process. >> it is like this. first of all, culture and our landscape. my process. music.art and just before leaving for the tour for the book, i have seen something that we designed that reminds me of russian doservatism as a guys, they

not know about russian conservatism. they have the book. they have their own schedule. i am like, i am getting into russian conservatism and going back, i want to see in the book what they know about russian conservatism. >> these are tests? >> that are not a test. i pushing them to learn. can be [indiscernible] -- go deepker or into things. if you go deep, you get obsessed and maybe you will know everything about it. fog.ir, the the besthow to bake

bread in the world. those are very important things that look simple, but is so complicated and everyday change. >> let's go. let's look at the cameraman to follow me. walk us through. standing in the middle of your creation here. . am standing in the middle when you look at a plate of food -- the white piece of paper effectively -- the paintingbout and this is the imperfection and the perfect imperfection. every single plate is going to be unique. you are going to experience in every single plate a unique design. a unique photograph, a unique everything.

this is the main actor. it is not real. we give the idea of imagining. what it is and what it looks like. we get to the beef. vealompress it to get the flavor. >> that is playing with your mind. >> is not grilled. but the flavor and taste is grilled. the side andes on -- that is virgin olive oil. >> i have tried it, it is amazing. , we are back in a couple of minutes. ♪

>> welcome back. time for new energy topic online. investing one billion yen into a 20% stake. >> bright source energy and shanghai electric plan to build 2 thermal power plants. mirrors will reflect sunlight onto a tower. >> there are pictures.

" for the second hour, a smorgasbord of great news coming out and we look forward to seeing you in a couple of minutes. ♪

>> diplomacy reset. president obama and the chinese counselor will meet in beijing. >> the president takes a side on neutrality. he is calling for an open internet. we will look at the impact of this will have on europe's web debate. >> alibaba beats last year's record for the biggest shopping event. >> good morning to our viewers in europe. a warm welcome to those waking

up in the united states. >> this is "the pulse." beijing.start in they have gathered to talk trade. the aipac rolls into its second day. we are joined with the latest. >> this is an interesting theing because, given tension between japan and china, the u.s. and china, the u.s. and russia, all of these leaders are in one place in beijing. a lot of interesting conversations going on. much of the meeting is focusing on trade. china will lead the effort to form a new trade alliance. you have these two dueling large trade pacts that will be

centered around the asia pacific. we could see them merging. china would like to be part of the u.s. effort, that i do not think obama is ready to hold up china on board. there is talk of china joining later. you have this new one emerging, will they still be interested if they get it off the ground? the new one will include russia. the u.s.-led one will not include russia. is goinglooks like it to hold early elections. what are we talking about there? walk me through the relationships between the u.s. and japan, japan and china, and the political story surrounding the sales tax. issue is aa-japan big factor at aipac. the two leaders have their first meeting since they came to power two years ago. relations were very tense. day -- they did not look happy

to see each other. which isaking hands, progress. on the domestic front, abe has a decision looming about deferring sale tax. he does not want to do it. in place to deal with a deficit that is more than 200% of gdp, but he does not want to choke the economy when he is trying to get his abeno mics in place. the sales tax would further hurt his popularity. why not call elections now? his numbers are solid. he could call the vote and betpone the sales tax and reinforced and avoid a leadership challenge next year. there is a lot of signals we are hearing from lawmakers that they are preparing for the vote. if it happens, it will be in december. abe could dissolve parliament as early as next week or said he

has not made a decision yet and it is up to him when and if parliament will be dissolved. >> thank you. andrew davis joining us from hong kong. --.et's bring in -- is it just for the cameras? >> a lot of it is niceties for the summit. it is to make sure that aipac goes smoothly and that the photo ops are nice. the priority is slipping. there is a fundamental change with the obama administration, very weak, domestically. the administration is very powerful domestically.

of concern about what china's rise means. china's pockets are appealing. it is going to have a material impact on so many countries that is going to be felt the on the alphabet soup of trade deals going on in asia. the first time since the cold war, we have triangular relationships. obama as the lame-duck. there's only so much they can expect. >> we are looking at a situation where republicans are taking control of the house. or deepsideline priority of the relationship with washington, is there a danger they will fall foul of that? >> there is always a danger. they are more willing to push the power. we did see the handshake.

we will see how long that lasts. they are willing to push because they calculate washington is weak currently. there is a risk in that. , especially -- there is risk in that. they think they have strategic opportunity before the next administration comes in. exelon of the foreign policies are made between two human beings. if you respect each other, it makes it that much easier. do we know about the relationship between president obama and president xi? >> not much. they try to keep it cordial. they both walked together in the fields and had an informal talk, which was significant for xi, showing he is the kind of leader who can do this. they're going to get an informal

few hours tomorrow. they are not going to be able to reciprocate that kind of hospitality in an off-site meeting with the u.s. putin,compare that with they are meeting regularly. a is very clear there is triangular relationship. >> if you are a european company trying to do business in china, asia, how should you be reading the tea leaves about how this is that is going to affect your bottom up business? >> you have to monitor it closely. it will have an impact every time. the u.s. has shied away from criticizing hong kong. there is a geopolitical layer to pay attention to. with the easing, the japanese -- theave been the

investment climate is improving. chinese are more receptive to investments in the areas they want them. not in areas where they think they have an edge. the high tech companies are the ones with the added value with intellectual property they could dilute. the lower value added, they should look at southeast asia. triangularabout the relationship, russia signed a gas agreement with china. where does this leave the u.s.? it seems like president obama is trying to pay -- trying to play catch-up. what does he need to do to recuperate a little bit of ground? click see needs a good team, a defiant -- a divisive foreign policy. it has a very strong card to play with the chinese in terms

of technological and technical operation. the u.s. is less vulnerable to .mports they are vulnerable to changing oil prices. now that the u.s. is less reliant on oil imports, they can choke off the chinese supplies. in russia, it is handy. it is a land-based route. that is where it is strategically important, to counter the maritime routes, which is dominated by the u.s. have joinedand u.k. the european union. are -- there are threats to tight and sanctions against rush of your they blamed russia for continuing to arm rebels in eastern ukraine. president putin denies

involvement. >> -- a person with knowledge of the case. the u.k. financial conduct authority is poised to meet settlements with six banks. of banks are being sued by soldiers. they are being accused of helping iran in transfers and financing of terrorism. the terrorists went on to attack troops serving in iraq. still ahead, pushing for an open internet. president obama calls for the strictest possible ruse to ensure net neutrality. finds out -- find out what this means for europe after the break. ♪

>> welcome back. bloomberg'sfrom london headquarters. a little bit of data out earlier. i expect we will be taking hold of the pound moving forward. the politics of britain are changing quickly in advance of next year's general election. people watch the prime minister

rushing back from the city of london over to the palace of westminster to take part of a vote. was on european policy. we are looking at chaos within the label -- the labour party. all of this coming together in election next year, which is confusing people. that is going to make life difficult for people trying to figure out what the economic policy is going to be. we are getting ed talking about a little lighter. nevertheless, confusion is the story. it has seen the pound come down. 158 now. the next few weeks could be fascinating to see how the story develops. as we start to get in to the real run-up to the election and the policy gets stickier, many

people start to take chips off the table and that could include the british pound. standsident obama taken a -- has taken a stand for no neutrality. neutrality. what does this mean for you and i? >> in the states, it means something different. not have fast lanes and you will not have slow lanes. companies like netflix will not be charged by the cable companies to give faster service to their consumers. it is obama coming down on the side of the internet freedom crowd. here is how he put it in a video he posted from asia. i am asking the ftc to re-classify the internet service under title ii. to recognizehem

for most americans, the internet has become an essential part of everyday communication and life. he talked about plain english. there was plain market reaction. all of the cable companies down in shares on this announced that. republicans in congress are saying wait a second, we need to make sure that the internet is fast and fairness may not be the priority. tweetedwhat ted cruz about it -- net neutrality is obamacare for the internet. the internet should not operate at these need of government. -- at the speed of government. are at the beginning of this debate, not the end. a lot of money will be spent litigating on both sides. this point in time, europeans had taken a line, which sounds familiar, if you are on the democrat side of things in the united states.

fully understand the implications, the details, do you think the debate in the states will shake things over here or do you think they take a different staffing point? technologicly-wise is further advanced in europe. two, the u.s. is not always a prelude to what happens in europe on tech issues. we have seen that clearly with the likes of google. even in the 1990's, you saw microsoft run over competitors in the states. they had huge problems in brussels. you might see something similar play out with the cable companies or the companies that lay the last line of my -- the last mile of line that go into your home. netflix is relatively new on the continent.

it has been in the u.k. for a while. of idea of streaming a lot video, it has not taken off here the way it has in the states. what the cable companies are saying is they want to be able to provide these services at faster speed, maybe for customers that want to pay for. we have not heard the end of it. the eu still has to decide and finalize their roles and on july merkel has not wait -- and angela merkel has not weighed i n. >> expanding london's airport capacity. the heathrow-gatwick tussle. that is later on. ♪

>> welcome back. you are watching "the pulse." we are on bloomberg.com. the biggest gainer on the stoxx 600. expecteded better than earnings. caroline hyde joins us with the details. signs of stabilization and what the executive calls encouraging progress. the stock has added 3 billion pounds to its market. the top performer in europe up

some 5.8%. not too bad. when you dig into the numbers, they are not all glowing. service revenue is down 1.5%. that is nine straight quarters we have seen vodafone continue to deliver negative growth in terms of service revenue. down in the u.k. by 3%. germany off by 3%. spain and italy off by 9%. this is improvement compared to the first quarter. we saw service revenue by more than 4% to them -- why 4%. they are managing to show this improvement. is about improving yourself in 4g. vodafone has been throwing a significant amount of money here. they are able to offer it 4g to more to -- they are able to offer 4g to more than 50% of people in europe.

80% in the second quarter shows our addiction to downloading videos on our mobiles. are things going to improve? >> they are expecting this to be a -- of vodafone, more optimistic. that seems to be the way the chief executive has been painting things. to be highlynue competitive, but these are the signs of progress and we will continue to overrule and start to stabilize, particularly in europe. two thirds of the sales come from europe. ,he second half of the year their weight -- they're raising the forecast. they just improved the range in

terms of profitability. goldman sachs saying we feel this is turning a quarter -- a corner. vodafone has been spinning one plate in europe, focusing 19 billion pounds of investment. comlm, -- voda downgrading. at the moment, it looks like it is positive news for vodafone. >> thank you. >> staying on company news, alibaba has seen record sales today. that is the biggest shopping day. worth $5.9oods billion.

ryan chilcote joins us with the latest. this is just getting bigger and bigger. salesustomers do more online. >> more presales. what is most of novel as they have a master plan to make even more money out of singles day. what was the homegrown anti-valentine's day in china to something that everyone in china got in on. just for singles, global. that is the whole idea to get u.n. me to participate in singles day. >> if there is a sale, i am there. of the people that took part in the sales were married. only 25% single.

this is something they would like everyone to participate in. it is the biggest online shopping site in russia and brazil. the ideas to push it out into markets. we shop at amazon and ebay. successful ipo. there was a survey done, only -- alibaba.hree >> can other brands of jump onto it? >> that is part of the idea. if you look at the scoreboard that they have, not only are they reporting success and progress in terms of volume of sales today, but they are also reporting what brands are doing well. four out of the five are chinese. that might change in the future.

>> thank you. >> we are going to take a break. when we come back, we are going to talk about gatwick versus heathrow. we will see you in a moment. ♪

>> welcome back to "the pulse." i am francine lacqua. >> i am guy johnson. these are the top headlines. >> president obama has been meeting is chinese and russian counterparts on the second day of the apec summit. obama and president putin held a brief meeting. president obama has been in china and released a statement. at&t seeverizon, and

the need for net neutrality -- see no need for net neutrality. netflix --ght side withlike netflix obama. 304 people died in the korean ferry. >> we are looking at the theme of risk in our economy. we spoke to the head of g 10 aspects. more interesting of a market. correlationsny

with data and fundamentals. we believe that at the beginning, this process will continue. ignore the data. we're going to keep interest rates low. >> let's check in on the markets. the state of play, keeping things in the green. a second day of gains. here in italy, half of 1%. in london, we are keeping our neck above water. up 1/10 of 1%. not as bad as people expect. market, and is about

one thing. a fresh record high. we are still out 1% on the day. some speculation that abe will push back the sales tax increase. look out for any talk and suggestion. it is a seven-year high for dollar yen. elsewhere, i want to bring your attention to this. swiss, we test the floor the swift -- of the swiss national bank. this is a low not seen since 2012. i pulled out this quote. someone said on twitter -- it is

like poking a wild air -- a wild animal with a stick. >> central banking to a whole new level. on.et's move gatwick and heathrow, head-to-head. to have more runway. will face 12 weeks of public scrutiny. joining me on the phone, london gatwick's ceo. a second runway gatwick will than yourlion more

bid suggests. ?ow do we get the math wrong >> when we analyze the cost of a different scheme was to look at the comparison. when you do that with the airport commission's numbers, as we have said, the gatwick scheme is the most affordable. it comes in at less than half the cost of the heathrow scheme. the heathrow scheme requires --e public subsidy and test taxpayer money. for us, it is the relative difference between the two. >> that was not the question i have, which was, you underpriced your bid by 2 billion. how did that mathematical difference exists? it is an awful lot of money. we are watching the process move forward. it is going to be critical to making an informed decision.

up with aend situation where you are under 2 billion where they think this will cost? >> when you look at the process we have gone through, we are confident in the numbers we have submitted. were carefully on putting the numbers together. we have had been peer-reviewed. commissioner has done the same analysis at heathrow. they analyze the heathrow was 4 billion pounds under cost. overall, which is the most affordable and clearly gatwick is the most affordable. run us through, are you saying that the gatwick expansion would not cost an extra 2 million? would gatwick expansion cost 7.5 billion pounds. we will go through the hundreds

of pages of documents that the commission released today. as of today, we are confident in the costs that we have put forward. >> there is no business case for expanding gatwick. your thoughts on that? >> if you look at the levels of support we have, we are seeing the business community get behind us. we see a whole variety of airlines come out and start support for that. the most important thing is that it is becoming very clear to us that those people support

additional capacity and want us to get on from -- get on with it. gatwick seems to be in the driving seat. >> had the commission spoken to you before? you are sticking to your pricing and your cost. had they given you a heads up that the figures are wrong? >> we have been speaking to the commission over the last several months looking at all aspects of the case. if we talk about the environmental impacts for a moment, what we see as the commission has come out and supported the position we have taken. we have also looked at the surface access implications where it is clear of the

investment would have to be made at heathrow. we have been talking with the commission on all of the different schemes. important thing is gatwick is by far the most affordable and deliverable solution. you are faultless in your desire and drive when we have these conversations about gatwick is the only viable option. mind, how close is this going to get? how close are we going to get in terms of making the decision? in terms of deciding which option is the best one. do you think there is a big spread between the two airports and it will be an easy decision to make. is it an easy fight or a hard fight? there are a variety of

different aspects. there is the cost of the scheme, the environmental impacts of the scheme. they all need to be taken into account. when you look at it on a balanced basis, gatwick becomes the forerunner in the debate. heathrow tries to expand for many years now. they have always fallen short. fundamentally, heathrow is in the wrong place and has huge environmental impact. with the rightg to build a second runway. it is a veryt, competitive airport and airline's market, which will bring benefits to the business traveler and the leisure traveler. >> always a pleasure.

it is always a fascinating conversation with you. >> still to come, the business of london landmarks. the cfo of land securities joins us next. ♪

>> welcome back, live from london on bloomberg tv. biggest -- lan security getting a boost. shares are trading higher this morning. to propertyroperly cfo martin greenslade. very nice to see you. it feelsk about what like at the moment. there is a lot going up right now. yields are coming down. property prices look buoyant. how would you describe it? to 2006, 2007? >> we have two factors.

rents are rising. that is part of the reason people are prepared to pay these yields or higher prices. not much new space coming on over the next couple of years. >> you had some very good figures because the real estate value went up by 11.5%. is doing well. now, we hear concerns about whether the u.k. will stay in the eu. we are starting to have worry signs amongst the business community. >> a couple of things. thehink we are well set for next couple of years with the space we are bringing. the demand is very strong. if we turn to the eu, it is a hypothetical question.

if you had a referendum in the run-up to that, i think our concern would be about as mrs. delaying investment decisions, such as taking new space. >> what it affect the investors as well? money pouring into u.k. funds right now. you wonder whether or not doubt be the case. >> the sensitivity is going to be high. wouldld it just pause or there be a reversal? we might see a pause. good indicator of what we see remaining? >> you can see some pausing in the moment. same thing. what is driving the cause. i suggested is a bit of a lack of clarity. >> land security has also developed buildings without having tenants.

that has proved to be a great bet. are you more cautious giving the change in landscape of what we were talking about, the possibility of the u.k. leaving the eu, even if it is unimaginable, you must be -- to that. have 2.9 million square feet we are delivering into london over the next two years. we have 1.4 million square feet of that left. of space into the markets. beyond that, we are not delivering any news base speculatively. that will take us through to the end of 2016. >> are there bigger opportunities outside london? >> outside of london, in the retail space, we have seen money flow out of london. higherlds have been much

and you have seen some yield compression in that space. up over sixre months. -- that we have seen in a while. >> still, companies tell you they want to be in london to attract talent. compared to the other costs businesses have, such as payroll cost, if you look at the real cost of office space, it has come down. >> is that because they are putting more people together? >> rents have not risen. a lot of people coming out of leases in the late 80's will have been paying per square foot. rent has not risen. , if you looksense

at the tenant spectrum, give us an indication of who wants to be in the government and who does not. is there anything that surprised you? we have seen a decline through the financial crisis in the number of financial tenants. in terms of financial services, all of those are taking new space. the economy is buoyant in that area and people, after they have been in a billing for 20 years, they want to move. have you felt a meaningful impact? it is probably further down the food chain, the way you are operating.

>> it does support of values where there is conversion to residential going on. we do have some residential .evelopment the city is focused on office space. >> we talk about google and facebook increasing their presence in london. the space is used much different than we are used to traditionally. tenants,speak to your you leave a building empty because they want to make it their own. how has the office space changed in the last five to six years? >> you do not have cellular offices anymore. very few people have individual offices. you do not have as many core rs.rs -- corrido people have focused on the breakout space.

how do they make that better. into ar phone moves small room for a private conversation? how do you make the collisions ?etween the people that is really important. that is why we come to work in an office. >> long tables? >> along tables, free food, clever technology. >> it is interesting you talk about the desire to bring people people in office. thessa -- marissa mayer has whole working from home story. as that process beginning to reverse? >> you have seen where the technology companies are coming back from the import corridor. that is where people want to be. people want to live in cities. we are getting people moving back into the city.

people love the environment. with the office environment, what you want to do is have a stimulating culture that people want to talk and meet and get that going. that is more difficult. you will get both. you will get remote working and you will have flexibility to do it how it suits you. >> thank you for a great conversation. the chief financial officer at land securities group. guy -- coming up? >> president obama and his counterparts are meeting in beijing. ♪

>> welcome back. streaming on your tablet, bloomberg.com. let me show you what is happening with dollar yen this morning. this is the picture. more dollar strength. a theme we are seeing. we have seen news overnight that maybe there will be a dissolving of the parliament of japan if we do not see a second sales tax push become a reality. the first one may have been something of a mistake.

we are up by about 1% overnight. >> hans, you are following the apec summit in beijing. stomach in beijing. >> they will have a meeting later on tonight. they will have a working dinner. perhaps more importantly, president obama and a vladimir putin crossed paths. they spoke for about 15 to 20 minutes. they appear to be talking. unclear how formally the discussions are. obama and clinton are having conversations, but nothing formal on the schedule. are havingd putin

conversations, but nothing formal on the schedule. >> thank you. keep it here. "surveillance" is up next. ♪ .

>> obama leads putin in a nonsubstantive exchange and then like ships the night they pass in the hallway. find new tech.

equities grind ever higher. the american depression you did not learn in school. jim grant joins us on his 1921. good morning, this is "bloomberg surveillance." we are live from our world headquarters in new york. it is tuesday, veterans day, november 11. i am tom keene with scarlet fu and brendan greeley. let's get to our top headlines. >> we start with a breakthrough in trade talks between u.s. and china, negotiators meeting at the apec summit have agreed to drop tariffs on another of technology products that may cover up to $120 of trade from computer chips to medical devices. the u.s., europe, and japan have been pressing for an agreement years but china has been reluctant to list -- live the tariffs. the clock is ticking on the nuclear talks with iran and there's no sign a deal is imminent. john kerry has wrapped up two days of discussions with his