>> manufacturing hits the brakes. data from germany and france adds to evidence of a european slowdown. london waits for the news on its legal challenge to brussels. and, landing delta. airbus looks set to win a $13 billion deal from the u.s. carrier. as expected, we are just getting data out from the eurozone. that, i am guy johnson.

let's talk about what we've got. manufacturing pmi falling to 50.4, the forecast 50.8. we have already seen the breakdowns from a national level. the german date or little weaker, the french data certainly a little weaker at the moment. those that were hoping there were any w numbers in the other survey numbers were indicating that we were going to see a more stable story, maybe a little bit disappointed by that. 1.2515, you could have seen a pop through -- you could have seen a pop through 1.26 today if you had a decent german number. 16 is where we are trading now. that's get some immediate action to the figures. harry coleman, good morning to you. i read your notes this morning on the train. broadly positive. you think the doomsayers are largely wrong about the european

economy. is there evidence that undermines that argument. >> i don't think it does. we had soft data, some of the trends in the pmi numbers pretty poor, but generally i think the consensus on europe is too bearish. i think the outlook is much better. if you take a step act from pmi numbers, you will see most of the macro data in europe has been better than expected in recent weeks. i think that is largely due to the big fall in the oil price. oil is down 30% in euro terms. the outlook is better than consensus. i think people are too bearish on europe. thatat is leading them to conclusion? a lot of people are bearish and some fairly big names in economics are bearish on what is happening in europe. >> i think the backdrop is troubling. poor productivity trends, poor demographics, a lot of indebtedness. the trend growth in europe is

low for a starter and then you have falling inflation rates. the are bearish because of that. i think actually this bearish story on europe is drawing to an end. deflationinflation, concern that is out there is overplayed right now? we are getting hints from mario draghi that that is not impossible. >> i think we are probably going the ecb.re easing from probably what is more important is that in europe, the appetite for credit demand is improving. nonfinancial corporate sectors have been leveraging for five years. the pace of that is slowing. appetite tomorrow is improving. consumer credit is better. spanish demand for mortgages is very strong. >> from a very low base. talking about strong -- datau look at the survey

for spanish demand for mortgages, multi-year highs. it has been improving from a low base over the last couple years. athink we are about to see turn in the credit cycle in europe. that will add to the economic cycle. >> do we need the kind of credit that maye-style policy be some are advocating? >> i think the answer depends on whether we see credit growth coming through. >> you think we are already seeing it. >> the service data tells you demand is improving. the actual lending hasn't picked up in a meaningful way. the speed of deleveraging slowing and possibly about the turn. whether or not that comes through is key. whether or not they do qe will be depending on that. >> the issue in many people's minds is that we have a high debt load. i appreciate that deleveraging has taken place. it still has a long way to go.

you have a long way to go, you have countries that have well over 100% debt to gdp ratios. in some countries, you have very high household debt levels as well. the problem is, what we are not doing is generating growth right now. the lag factor in some of the things you are talking about, how long is it going to take before we start to change the story in europe? is a good there chance you see some better credit and better lending data coming through in europe probably in the next few quarters. thing tohe key remember about europe is we have low trend growth. if we have a little slowdown, we quarters ofor two contraction and it looks like a recession, technically maybe it is, but it is not meaningful. it is not full-blown. it is a soft patch and it turns out to be nothing more sinister than that.

>> are we just going to have i think credit picks up a little bit from dismally low levels and banks maybe start to sort out their balance sheets. you still feel a bit like things pick up a little bit. you are still not generating the kind of growth that europe needs to deal with unemployment of 12% in many countries. youth unemployment near 50%. societal changes that need to take place quickly. you kind of feel we have a duration mismatch. you have growth that is going to pick up very slowly and unemployment up here and people beginning to scream louder and louder. >> i think that all speaks to the structural headwinds in europe. high debt, possibly structure really high unemployment, poor demographics, low trend growth. it is not an exciting place to put joe money. don't get excited.

what i'm saying is that it is better than expected and the sentiment is heavily bearish on europe. i think it is pretty close to as bad as it gets. the interesting trade here is the euro. we could see a rally in the euro. position.rt in that >> hasn't pushed it down by much. >> the euro has been coming off. -- you runou look at through a list of things and the only thing that could be positive is not trade. what is a going to take to get net trade going? i'm not sure a euro in the mid-1.20's is going to do it. >> i think you could still get a rally on the euro based on positioning. technical models are telling you that euro is heavily oversold. i think it is one that could work. >> that is bad for europe, isn't it?

>> it doesn't help europe in terms of trade. >> a benefit in trade for the fx guys. it is not a short-term benefit for the companies trying to turn out widgets in germany or companies that are making trains in france. >> that is right. i think a lot of the data is not as bad as you seem to be suggesting in europe. spanish car sales for example. >> which is heavily skewed by the cash for clunkers and incentive scheme. ok, but you are not just seeing it in spain. house prices are accelerating in germany, portugal, ireland, holland. this is good for the household balance sheet. >> i'm just looking at inflation numbersnear zero, pmi on the manufacturing sector out the plus-minus

contraction territory sort of level. you point out, --htly, mixed, but they are you have to look for the positives. >> you do. but i think this is all part of the soft patch, the growth slowdown. it is one or two quarters of contraction, not meaningful, not dramatic. >> it is not 2007-2008 but it is maybe long-term and sluggish. i will take that. nice to see you, harry. what else is on our radar this thursday morning -- here in the u k, voting is underway. polls open at 7:00 u.k. time. they close at 10:00 tonight. the result is expected early on friday morning. pay attention to that. it is going to have a big effect potentially on next year's general election. u.s. president obama will use a

prime time television speech tonight to present the biggest reprieve for undocumented immigrants in a generation. he plans to use executive order to remove the immediate risk of deportation for 4 million to 5 million undocumented immigrants. to ignite asure showdown with congressional republicans who have accused the president of exceeding his authority. president south blatter refuses to release an investigation into the world cup in qatar and russia. saidjournal, blatter soccer's governing body is bound by swiss law and its own confidentiality rules. portions may be possible. that just really makes you realize how interesting that report could be, particularly as it also said, maybe i have been

misrepresented. coming up, find out how the price of oil is changing the geopolitical landscape. later, airbus on the verge of a big deal with a major u.s. airline. 50's is what we are talking about here. and we are talking about bankers as well. british bankers get a clue about the fate of their bonuses. we want to know what you think. banker bonuses the best way to control risk? join the conversation. ♪

facts back. we are live on bloomberg tv feeling of -- bloomberg tv. seems kind of a slowdown in europe. the montana, topline maybe negative. the numbers, any a little bit more positive. , not bothered about what is happening. if you look at the economy in the united states, you can understand why. it is a centralized central bank. jonathan ferro joins us now. why should they bother about the rest of the world? that bringsconomy lumber from the northeast and cars from detroit. it all comes together and forms an economy -- >> but it was the story of

october, the slowdown, what it meant for markets, what it would mean for the federal reserve. too concerned about it. limited impact on the domestic economy. , youu watch u.k. comedy know that phrase, am i bothered? not bothered about the slowdown in the global economy. not bothered about volatility. very concerned about not acknowledging it in the statement. they didn't want the market to feel like they cared more than they do. when we did get the financial volatility, he was very dovish. >> i remember that. i remember thinking, he just feels like an outlier right now. he is a nonvoting member, feels like an outlier. he is the only one that is doing this. are not too concerned about growth, not too concerned about financial volatility.

no real fight over ending quantitative easing. >> i like that. a lot to be said for that. inre does this take us understanding the trajectory of the right story in the states? that is where we are now shifting off. we were thinking about qe. now we are thinking about rates. not so much when the liftoff will be but the journey after the initial liftoff. that will be a debate going forward. the other news that came out was the lack of concern about a stronger dollar. we heard concern about a stronger dollar in the previous meeting. that wasn't there this time around. that is a free pass for the bank of japan and the ecb. they said yesterday in those minutes that that could be offset by falling commodity prices. i think that is probably a

fair point to make. be interesting to know how the dynamics of those two -- as the spread starts to grow, what happens with that dynamic is going to be interesting as well. with the u.s. position with shale, it was a different picture than it would have been 10 years ago. the negative impact for jobs, it makes up a terrific proportion of high-yield debt. that is a story that is going to keep moving. >> thanks very much indeed. let's carry on the conversation about oil. we are waiting for the opec meeting. it is a big week next week for the oil market. since june.ver 30% is the slump enough to force the cartel to act? ryan chilcote, we are sending him to vienna. what are we expecting? >> anyone who tells you what to expect from this meeting, take

whatever they say with a huge pinch of salt. is, there is no consensus. oilcan see that with the price which doesn't have direction. no consensus on what opec is going to do. we surveyed 10 analysts and 10 four they wouldn't do anything. ,he saudi's cut their prices which would suggest they don't want to cut production. many people say, in a move to make u.s. shale producers on , butmic -- un-economic they have been very tightlipped as they have done that. they can decide not to cut and keep the status quo by agreeing not to cheat, in other words, stick to their production targets. interestingly, morgan stanley has a report that says when you get price declines like we have seen this year, history shows that opec is likely to take action. they think there is a 2-3 chance

they will either cut or just agree to follow the rules. we shall see. three surveys we have done in the last month pretty much smack down the middle. people that watch the oil market for a living have been divided. >> the saudi's would like to see everybody else on board. the problem is that everybody else has the need to keep on pumping. how does that dynamic play out? >> that is exactly right. iran, where production is down by 25% since they last agreed to cut, libya, where production is down by about half, those countries aren't going to agree to a cut. it gets really sticky because while they have a production target, they don't have allocations for individual countries. every country can claim the other country for producing too much oil. usually, they blame saudi arabia. if you look at this nice chart

we have got, you see that basically, cheating has continued throughout the six years since they last cut production. the white line is actual production. yellow is what they are supposed to do. the red line is global demand. it is declining. yet, they are still cheating. that is because obviously no one wants to turn off the tap. that gives you a sense of the issues they are dealing with going into this meeting. >> brian, thank you very much indeed. bloomberg tv will be live next week from opec in vienna. a little chilly, i would have thought. coming up, delta is said to have picked airbus for a $13 billion wide-body deal. we will have details when we return. ♪

welcome back. let's look at how these markets are performing. equities broadly lower. there are a bunch of factors, one of which is disappointing data out of the eurozone. manufacturing pmi from germany and france below expectations. most major european equity markets lower this morning.

what is higher this morning could be airbus. airbus close to beating out bowling in securing an order from delta for as many as 50 wide bodies. let's figure out what the story is and why airbus is doing so well over there. benjamin cowell joins us now. good morning. delta managed to sneak this one from under the noses of boeing? for airbus to win win something in the u.s. of this magnitude and with a customer like delta. delta is traditionally a boeing customer. for a winner takes all types in a rio, that is a big -- type scenario, that is a big win. isning business in the u.s. important. it is very important to get a

flagship carrier like delta to endorse the program. when you get those big orders from major customers like singapore, like delta, that resonates around the world. it is important that they sold .he 350 and the 330 neo it shows these programs can coexist and one isn't sabotaging or cannibalizing the other. all around, a win for airbus. >> is it -- to what extent is 787 is so soldhe out at the moment a factor in this? are they going to get the planes earlier than they would have done if they had gone tebowing? >> that definitely plays into it. delta will have looked at the 787-9, which has more restrained orders than the a-350.

airbus has some wiggle room after emirates dropped its order. they claim they are sold out but that might have given them some room to negotiate and find some slots for delta. those two aren't and. are now and neck. >> do we have any indication on what kind of discount they have got on this? >> we don't know. it is probably the best-kept secret in the industry, what people actually pay. there are list prices out there but that is essentially a number scribbled on the back of an envelope. nobody pays list price, ever. a customer like delta, they will have gotten a big discount on these jets. it is impossible to say. >> but always the question everybody wants to know. we want to know what the real

number is. it is our job to find out. benedict, great to talk to you. up next, we are going to talk about uber and the controversial comments that have made it a little bit of a target. ♪

>> welcome back. you are watching "the pulse." u.k. retail sales down. a nice strong number. let's see what the other headlines we are watching as well. the minutes from the u.s. federal reserve revealed concerns on what the fed should be communicating to the public about the future of rate policy. october's meeting discussed whether it would help investors to clarify its approach. the pace of interest rate increases next year.

communication about policy would pose challenges. rbs is being finefd 42 million a 2012 collapse of its computer system. it left millions of customers without access to their accounts for weeks. the bank will also pay the bank of england 40 million pounds to settle its probe into the incident. risks a really slow down after manufacturing and services are weakening. pmi data for both sectors fell. in november. that is the lowest level in 16 months. is marketing its inaugural bond issue and may price the notes as soon as today. for more, let's bring in lulu chen. tell us more about this offering. >> alibaba is selling its bond

in the southern park series. they have already received orders that are reaching $20 billion from investors and the tryingile they are only to market as much as $8 billion of bond sales. they are trying to use part of these proceeds to refinance $11 billion of loans and credit that they already have. scheduled toion is kick off this week and will have more details coming as the week rolls out. >> ma has been talking, saying the company is facing its most dangerous phase right now. expectations are so high. talk us through his concerns. >> it is not the first time that jack ma said something like this. he is known to pepper his speeches with controversial comments. the context for this is that he

was saying that before the ipo nobody thought the company could make money. now the problem is that people think they are too great, that they can do anything. that is a dangerous moment for the company. jack ma had previous comments similar to this, saying that the danger is that company staff become too complacent and miss out on the opportunities of innovation and the opportunities in the mobile age. this is probably a reminder to complacent be too with the progress they already have now. >> thanks very much indeed, lulu chen joining us on ali baba. let's move on. let's stay with tech. uber is facing criticism about its comments made by executives. company tofor the

bring in more seasoned executives to help steer the company? growing at a breakneck and has a fairly aggressive management strategy. caroline hyde joins us. you've seen classically with big companies that they grow quickly but young executives need more seasoned hands to help them. are we at that point now? >> we have seen it with google, facebook, and potentially this is the tipping point. it is the most highly valued startup in the u.s. it has a huge pr problem on its book. we know what some of the stories are. it has been reported by buzz feed, the editor in chief when out to dinner with the senior vice president, and suggested over dinner that he heard michael saying, we could spend millions of dollars to look into journalists' private rights.

this is about a reporter who has been on bloomberg over in san francisco, saying people look to rivals of uber. >> in the past, people vote with their feet when it comes to facebook or google. uber is very different because it is the real world. you are getting in people's cars. is that finally scary enough that it changes consumer behavior? uber, there are other alternatives. of view, saraht lacy is being quite sensationalist. she has security, bodyguards, saying she is quite scared. there is another report, a buzz .eed journalist arrived at uber it is reported that the general manager said, i've been tracking you. why were they tracking? they say they are able to see where their cars are. i can see that he probably wanted to show off the technology. >> bad timing. >> they are accused of being , hegynistic because the ceo

gave a gq article calling uber -- more females interested in him. what you have to remember is the head of the u.k. is a female. claimshe misogynistic have to be realigned a little bit there. so how are they going to deal with this? bring in the grown-ups story going to be a reality? >> it is building a crescendo. travis from uber has said the comments are tell little, they don't rep -- are terrible, they don't represent what the company is saying. -advisere hired an ex to president barack obama. maybe they will make sure that people who are working at breakneck speed -- they realize

they are making mistakes. is this the point where you need to get sheryl sandberg on board as facebook did who was a seasoned executive and a female? people are saying, get a female on your board at uber. google, take a leaf out of their book. they have eric schmidt on. he was a seasoned executive. they needed help. he became ceo and now as chairman has handed the reins back. many feel this could be the tipping point. just that guidance through a turbulent time, when trying to raise another billion dollars at a higher valuation. >> caroline, thank you very much indeed. let's go from one app to another. are you tired of having to print out tickets to get into a gig? or having to retype your details every time you want to buy something. hasndon-based company streamlined the job and is

working to but scalpers out of business. angus bennett went to visit dice, the new mobile app hoping to rock the industry. >> these are the shows happening this week. they say what times the bands are on stage. you tap a button, choose any ticket you want. that is it. welcome to the dice office. there is only one room. veteran music producer turned entrepreneur. he set up dice this year and it is growing fast. dice is more than a ticketing service. it is like a guide. gigs and musicians are reviewed and suggested, the idea being that dice will learn your taste and keep you ahead of the crowd. >> we are only in london.

we don't accept all the shows. our guidance is these are the best gigs to go to in london. >> other companies do this already but with dice there is no hidden cost. they deal directly with promoters and artists. dice is also working to stop ticket scalping, where someone or a company buys tickets and then sells them for a higher price. person is actually buying it -- it is impossible to resell. >> not quite. dice has its own function which allows their users to sell their take it if they can't make it to the gig. >> 20% of people don't turn up to the gig. can return that they the tickets. >> the margins in selling mobile tickets are wafer thin even with booking fees. for dice, it is about scale.

london, wenow it in will take it around the world. you get the proposition of billions of people with technology in their pockets. >> angus bennett, bloomberg, london. >> let's go from the hot tickets to the hottest rides at the l.a. auto show. we are talking luxury and fast cars in just a moment. ♪

>> china's market has been growing very rapidly. we are selling over 80,000 cars. it is good for the company also. it is also good for u.s. having a strong foothold in china. >> the ceo of volvo speaking to bloomberg about china at the l.a. motor show. says china is the biggest opportunity for the government to change the auto sector. more on what is happening here. that start with the l.a. motor show. what we appear to have seen is what looks like an increasingly crowded luxury end of the market. more people want into the high-margin business. >> exactly. it used to be the three german brands that dominated this

market. we have seen a lot of new introductions. is out of there very strongly. maserati is another brand like this. the returns are attractive. have invested, mercedes have invested, the w has invested in audi, you wonder what that investment is going to mean in terms of their ability to stay in front? >> it will remain a german-dominated industry, no doubt. is going to be more diversified. if you have that kind of money, you can spend on a luxury car, you want to be different. differentiation starts to become important. how do the u.s. carmakers differentiate themselves? >> on the luxury space, there hasn't been much of a ledge of a luxury car industry in the u.s. we have seen lincoln and gm

pushing money into cadillac. the u.s. is still a rather undeveloped luxury market for carmakers. >> are we going to see any meaningful margin compression as a result of this? >> not yet. i think there was a peak in returns in 2012 and now they are trying to maintain those returns. the space is still very attractive. >> what should we watch out for? what were the themes that came out of the show? you were talking about the powertrain. we aren't talking about engines anymore. we have moved on. as we look towards the future and lowering emissions and moving away from the internal commotion engine, how advanced are we? that is a long process probably will need at some point a big loss of market share for

internal combustion engines. >> what do you mean? decades? >> probably two or three decades. you cannot get to zero emissions with combustion engines. even along the way, the reduction in fuel consumption does require a lot of electrification. what i find interesting is, if you look at tesla, the car it self is nothing special in terms of features. it is a nice looking car. it is a four-door said and. -- sedan. but the car is very successful because of the powertrain. we will have to see what happens with toyota and they're launching the fuel-cell cars in the u.s. and u.k. your notes were interesting as well because they talked about china, and game changing technology. you talk about 2, 3 decades for

this process to work. i think a lot of people would agree with you on that. say the chinese decided they were going to go for mass electrification. how significant would that be? >> it could be very significant and very fast. right now there are lofty goals in china for penetration of electric cars. if the chinese government decides to step up the pressure and push electric cars, create infrastructure, you could see towardsid shift electrification. because china is the biggest market in the world, every carmaker has china in mind when developing a new form of powertrain. it could influence the shape of the industry. >> say it was going to happen. which companies are best positioned? >> if you are a newcomer to this industry, tesla is an example, you don't have the baggage and history of internal combustion engines.

if you have been making engines others need to catch up. if you shift the industry towards electrification, you somewhat undermine the competitive advantage of the incumbents. it is no longer about internal combustion engines. it is about other features. it levels the playing field and helps the newcomers. the goal in china is to develop a competitive domestic auto industry which has not been successful so far. now and iinvesting want to hold the stock for 10 years, do i invest in the companies that are spending the most on electrification? -- they look to be spending money. do i spend on bmw? >> you have to give credit to -- thepanies that electric cars that they put on a five series is

not sold, but they have the courage to do that. the ones who make the effort of investing in those new foreign powertrains -- >> does it make it harder for a ispany like fiat that already balance sheet constraint and is trying to invest in getting brands on the road again? investing asot aggressively in future technology. >> it is something they need to do. they will eventually. interestingly, fiat today in withe is the company chrysler and the maserati brand -- the footprint got worse. it is something they will need to do. they need to be creative about it. they have been running behind.

>> in the past, they have been very creative. philippe, very nice to see you. now, moving from the latest on cars to a vehicle with a few more miles on it. mention classic cars and you may have visions of these, from a bygone age, glistening in chrome. it was forgotten. raised some eyebrows when it turned up. it was one of the more unusual highlights. >> the classic motor show, a glittering gathering of opulence and refinement from an era when motoring was all about style. you may be a little surprised to see an unlikely star hogging the headlights. believed to bes

the second oldest surviving one in the world. her owner has to think long and hard about which road to go down. restoration or preservation. >> once it is restored, you can never go back. right now, it is originally how it was found. it, you do something to have got the responsibility of the people that come out of it. restoration mike chooses, he is in good company. cars like the goal wind don't look this good without a healthy application of elbow grease and tlc. all are used. they are not just put in the garage and looked at. >> you can't have a classic car show without the company of film legends and a certain silver

lady. the rolls-royce enthusiasts club has over 8500 members who would probably think twice before being seen in an old morris van. >> the great pleasure is to ride behind the little silver lady, the spirit of ecstasy. i'm afraid it does make you feel rather grand. yourther grand even if motor is an old banger. looking very comfortable in that. coming up, amazon.com has some cleaning up to do. why one group is calling the company dirty and what amazon is doing about that claim. we will talk about that when we come back. ♪

>> welcome back. you are watching "the pulse." we are live on bloomberg tv. let's talk about today's new energy top headlines. amazon has pledged to reach 100 renewable energy usage for its cloud computing division. this comes after the company was criticized by greenpeace as being among the dirtiest tech companies this year. amazon has not yet declared any renewable energy investment timeline. seems pretty critical. since shares fell nearly 4% after morgan stanley cut

estimates for the firm, tesla has delayed the debut of its suv. production of the vehicle is critical to the automaker. california and the canadian province of quebec have cut ofrt their first joint sale gas allowances citing technical difficulties. they are working to recruit other states and provinces to join the system. on bloombergtening radio, the first word is up next. for our viewers, it is a second hour of "the pulse." we are going to be talking about the battle over banker bonuses. t's leader of u.k. reward practice is joining us. we are waiting for an indication from the european court of justice as to whether or not the u.k.'s fight to overturn eu banker rules are going to be successful. going to be talking

to russia's ambassador to the eu. and we are exclusive with the ceo of hunter boots. james suess is going to be talking about his push to take what was once a well the firm into the fashion market. ♪

>> a european court recommends rejecting the challenge to the bonus cap. -- we know aritish lot about the rain. we are talking about how to make it rain in the fashion industry. about taking the brand beyond wellies and into fashion and global growth. that is coming up later in the program.

good morning to our viewers in europe. good evening to those in asia. welcome to those just waking up in the united states. we are live from bloomberg's european headquarters in london. francine is off today. let's get trait to our stop story. fines for rbs this morning. 56 millionll pay pounds for the crash of its computer systems in 2012. our u.k. banking reporter is here. fined -- it was a big glitch. is this fine commence or it with the crime? >> it is quite a big fine. 56 million pounds, $88 million, quite a big fine. that, however, does reflect the issue that the regulator is taking here. this impacted about 10% of the british population, which is a

huge number. 6.5 million customers of rbs out of 26 million customers overall. that is a big financial stability question. that is why we see bank of england's prudential regulation -- the split between those regulators. they wanted to find them because of that issue that hit customers >> lessons learned will be what? invest aggressively. they were being nursed along to make sure they still work. some people say they are held together by tape. he sings a been developed since the 1960's. they have been upgraded -- these been develops in the

1960's. they will have to spend a lot. we saw a group spending one billion pounds to address digitization. the resilience of their i.t. platforms. a big problem banks are having to address. >> their bonus is pretty much everywhere and banking going forward. based on the claim that the rules and came in in january were not valid. apparently they are valid. "taking stoc >> indeed. european courts advisor saying that the eu has the right to count twice the level of salary. that is something that the banks and the u.k. are unhappy about. here, we have the

majority of the banking population of europe. that is the one thing the u.k. has been trying to address. >> there is been an attempt to finagle these rules to get around them. that?e advisor touch on >> there was not anything this morning. the allowancesw system is something the european bank authority has come out against. the banks in the u.k. are not making any change to that structure yet. they are waiting for the british regulator to take a view and tell them what to do. that is the regular in this country. likely this will translate into the full findings? past, the european court has always listen to its advisors. it's highly unlikely the u.k. will win this battle.

it is seen as a blow to george osborne in his fight against this legislation. >> what is next? making itssee the eu final decision in february on this issue. the prudentialt, regulation authority in the u .k. might have to make some sort of stipulations as to what they do about the structures. that is unclear. >> thanks for the update. two big stories affecting british banking. what is on our raider? the euro area economy risks reviewed slow down. 52.1% tofell from 52.4%. u.k., voting away and

the parliament or by election. the results are expected early friday morning. fifa's president has rejected calls to release the investigation into the 2012 world cup. says publications apportions may be possible if the person waives legal action. still ahead, we carry on a conversation on banking bonuses. what do you think? are bonuses the best way of controlling risk within financial institutions? mark carney has been talking about this. he's concerned about the rise of fixed pay. are bonuses the best way of controlling behavior? should we be looking at bonus bonds? let us know. find us on twitter. ♪

>> you are watching "the pulse" in london. the currency markets. we've seen mixed data from around europe. the eurozone not so great.

the u.k. a little bit better with the pound rallying off an earlier low on the back of retail sales numbers. we had a better print of the headline level. however, i would urge you to dig into the data and have a look more closely. the deflator within that. while we are seeing the top volume numbere looking ok. the reason that you are seeing that is because the deflator -- autumn.en a warm in the united states a warm fall. but it isticking up because people are having discounts to get the sales running again. now, let's stay in the u.k. for british bankers

about the fate of their bonuses. one of the nine advocate generals backed the eu's move to cap bonuses. says it leads to continue awarding bankers that take risk. he says targeting fixed pay -- what his issue is is that what we are seeing is a rise in fixed pay which is not so controllable. makes use bonds maybe to variable pay more effective and maybe target risk and reward or effectively. u.k. rewardader of practice joins us. good morning. no surprise. >> no. i do not think anyone in the industry was planning on the bonus cap being overturn. so, banks continued to plan on the basis they have been. when he to see how they pra is

going to implement the european banking authority's ruling on allowances. which places for the restriction on the definition of fixed pay. there is going to be restructuring banks have to do to make sure they comply with that within the timeframe set out by the pra. >> the fact that banks have said, you know what? we cannot pay you bonuses. we will come up with a way to get around that, which is allowances. the european banking body says, we're not in favor of that. so, they are going to carry out. we are waiting for that ruling. in terms of us getting close r to understanding what the long-term story is, how close are we? >> we are pretty close. one of the aspects of the ecj ruling was the acceptance that the bonus cap is not a restriction on total pay levels. it's a restriction on how pay

is made up. is fact that pay is going up well-excepted. u.k. regulators wanted fixed pay to have greater downward flexibility. the eba has made it clear that it is not permissible in their book. are going to have to move towards complying with that opinion of pay set by the pra. certainuture, it is we are now living with the bonus cap. ad fixed pay has to be in much more restricted form than banks have hoped. >> mark carney has a concern that we focused much on fixed pay. what that does is take out the ability of bonuses to be used to control behavior. unintendedhe

consequences it will be less by way of bonuses to claw back in future with future events. they are interest in how much bonus there is. he introduces idea that part of fixed pay should be in the form of bond. it can be written down of the bank gets into trouble. of, and opinion across regular user europe, the u.k., the u.s. around bonds in bank's pay. we are much more like a deceit in the delivery of bonuses than in the delivery of fixed pay. having something that can be written down the value seems to go against what they eba were saying about what properties fixed pay has to have. we will see the bonds idea come to fortune. but it is like to be and how bonuses are paid rather than fixed pay. >> all of this is an argument around behavior. and behavior is still something that remains questionable in

many areas within the financial sector. for all our fretting about bonuses and fixed pay in the relationship between the two, do you think we are having any meaningful impact on behavior? >> changing the culture is a multiyear project. it will not happen overnight. we spent far too much time focusing on pay structures. focusing on how people are paid. rather than what they are paid for. and that means what is the performance being rewarded the least? what are the bonuses that are celebrated around here? what makes you a hero in this organization? those are the things that determine the culture. i think some of this discussion around pay mechanics is a bit of a distraction from those key issues around what drives the culture. what the banking industry needs is a period of stability where we are not distracted about caps and they can get back to these

really important questions about what they are paid for. >> do think that is a debate they want to have? >> i do. i think that definitely at the most senior levels and banks there is absolutely a recognition that banks need to address failings of the past. they need to become srganizations that have culture more focused on doing the right thing. and that commitment is absolutely there. but banks are large organizations. it takes time to drive that through. nor time we take dealing with technical issues the last time, the much harder work of cultural change. grace if you were to assess the risk of tighter regulation on this further down the road, and you look at the headline set up and coming out with the fx pr obes, painting a fairly nasty picture of the banking sector? do you think there is a bigger risk that we see more aggressive roles and a small the risk we

see them being loosened up? think definitely at the moment the risk is around more regulation rather than less. the problem with this stuff is that you introduce regulations. it takes a long time for them to have an impact. the impact -- we still have also these issues coming up from the past. hich create a political environment where the possibility of further regulation is real. >> on that note, we will leave it. tom gosling joining us. coming up, a potential $30 billion deal. airbus is on the verge of winning a major order from delta. details after the break. ♪

>> good morning. you're watching "the pulse," li ve on bloomberg tv and streaming on your tablet. also on the radio. a lot going on, busy morning. let's talk about airbus close to beating out boeing in securing in order from delta for as many as 50 wide-body jets. let's get details on what we know. bloomberg's aviation and

defense reporter. what do we know? what are they buying? >> airbus is close to securing an order for about 50 aircraft. ais a bmx of -- this would be 330of the new re-engines aircraft. it is winner takes it all. boeing was in this. but from what we are hearing, airbus wins the whole thing for about 50 jetliners, which is a big win. it is a big win for rolls-royce. they are the exclusive engine provider on both aircraft. they can do with every piece of good news they can get after two profit revisions. they would be pleased with this as well as it comes through. >> why go with airbus? this is a customer that has traditionally gone with boeing. >> they will have letter both

aircraft. is large aircraft like 350 availability. they have both sold out which is a nice problem to have. but it is starting to become an issue for new customers. airbus might have more wiggle room because they lost a large order from emirates. they have placed 50 aircraft and cancel them again. that was a lost. but airbus might be able to re-place those with delta. airbus has with the 330 neo, the old tube with new engines on it. they managed to capture a niche boeing does not have. missions,o the long but it is cheaper to operate. it uses known technologies. they have been able to offer something that boeing doesn't have. >> there was some concerned almostose two might

cannibalize each other. the fact they are buying both, does that put that idea to rest? >> it does to some degree. what you might remember from the -- when airbus unveiled the 330 hey quietly dropped the smallest variant of the 250. the -- the 250. 350. they dropped the 900. there was concern that they would cannibalize one another. they would stand on each other toes. with delta by both aircraft, they've been able to prove they can coexist in a single fleet. this?n do they book that will have an effect on what this year looks like. >> it might have been this year. it seems like it is just around the corner. it's come down to the wider. who knows? it might slip into next year

which would not have been awful. this has been a very successful year for the 330. they got a big win when they unveiled it. g endorsement from the leasing industryreat. had a more muted order scenario. the program is looking very good. they will deliver surely to qatar. if you were to slip into next year, that would not hurt airbus. >> thank you very much, indeed, on what we are expected from airbus and delta. let's talk about cars. uber is facing criticism over comments made by executives about the -- journalists. is it time to bring in new executives to steer the company? >> this is a huge company with a $17 billion valuation.

it has a huge p.r. problems. we heard a number of stores reported by buzzfeed. they had a dinner in new york -- ben smith the editor in chief with emile michael, the senior vice president. emil suggested they would be willing to spend millions of dollarse to look into journalists private lives. being sarah lacey. this furor is gathering steam. another journalist turned up at the new york office. the new york manager came down and said, you've arrived. i've been tracking it using their "god view" in cars. theanted to show off technology. but it became creepy. you have this backlash. you have had the twitter ceo, the founder, coming online saying emile's comments were

terrible. they do not represent the company peter hanson mark showed a lack of leadership. the lack of humanity. and a departure from our id als. eals. is foolishness or sinister, i think at the moment they have a real problem. they've got to grow. >> grown-ups required. >> they made a key hire. advisor toa former president obama. he's head of communications. the calls are coming the potentially they need a few new executive. get a sheryl sandberg who knows the business and has got the experience and female to take of f that misogynistic counterargument. also, maybe get an action at character. this company is growing at breakneck speed. they are not sleeping.

they are doing so much they cannot steer this. >> thank you. an exclusive we are live with russia's ambassador to the eu. ♪

>> good morning. you're watching "the pulse," here in london. i'm gone johnson. 42 millionn fined pounds for the 2012 collapse of its computer system that left millions of customers without access to their accounts for weeks. its largest taxpayer will pay the bank of england 14 million pounds to settle his probe into the incident. u.k. retail sales rose .8% in

october. that is the fastest pace in six months. economists had forecast a .3% rise. i would urge you take to go look at the deflator. eurozone faces are in your slow down as manufacturing services data weekends. 51.4%, thell aggregate number. that is the lowest level in 16 months. a reading above 50 indicates expansion. let's talk about one of the reasons behind that slow down, particular for germany. what is happening in russia. germany's foreign minister says the mounting tensions in ukraine raise the risk of a major military confrontation. warning after question with president putin in moscow. byaer joine -- are joined russia's investor to the eu. us. chilcote also with

good morning, mr. ambassador. can i ask you a question first of all? the story of the g-20 was putin, your president, was not well received by other members of the g-20. as a result, left early. how big a mental game changer was that for those and make policy in moscow? >> well, i do not think this was a particular game changer. and i certainly do not think that president putin left before actually the summit ended because of coo reception or something like thatl. he actually the reasons himself. -- he explained the reasons himself. to thehe left, he spoke

us trying prime minister and his reasons. >> ok. my just curious because sense is that russia would like to have the rest of the world perceive it as a great power. the commentary that was delivered to your president at that meeting did not imply great power status. russia, whether someone wants it or not, is a great power. itsvirtue of its history off size, of its resources with human potential. of what other people think russia's secondary. you correctly predicted that russia would evade economic sections when the eu foreign ministers gathered in brussels monday. now people are looking forward to december 18 when the eu heads of state gather.

do you expect there will be new sanctions imposed against russia? you recently said that you think runningpean union is out of the political will and capability to impose new sanctions against moscow. i was hoping you could elaborate on that. >> well, i will try to explain my line of thinking. theou perhaps know, the way is throughion works taking such important decisions on the consensus basis. the consensus of 28 member states. my understanding of the current mood in the european union among these member states is that today there is no consensus on abolishing the sanctions altogether, but there is no consensus on increasing that pressure, either. >> have you heard -- >> i think i've lost you.

>> no. have you heard any eu country suggest recently that they do not support sanctions, a changing of the tide? i'm wondering when you say you do not see the political will there, which leaders you're talking about. >> i've seen some public statements, so have you if you read them, by several leaders and foreign ministers saying it's not the tide has changed. it is that the sages have proven to be quiet ineffective. -- quite ineffective. >> i think that is a very honorable point, but if we leave it there and move on to a situation in the east of ukraine. one of the things we have seen over the last couple days is the authorities in kiev had decided to cut off that part of the

country financially. tanks cannot provide financial services financial aid from the government is not going there. there may even be no gas supplies. nowussia going to step in that it is supporting in some way at least rhetorically the rebels to help the people and in easternaine - ukraine? >> i can confirm that you make a very valid point. the latest degree by -- decree by president poroshenko by what is in fact economic strengthening of the eastern provinces. the certainly increase hardships of the population ther there is also growing concerne. of people in its

ukraine and of russia with the military build up of the linenian forces along the separating those two self-proclaimed republics and the rest of the country. russia has been not only rhetorically supporting. russia has been providing humanitarian aid to the population to th civilian population of thosee two regions of ukraine. it's a sizable number. before the conflict, these regions numbered seven and a half billion. the proximally half of population estate, but still,it means a significant number. they are suffering -- yes? >> you rightly point out that russia is helping in more ways than just rhetorically. you are well aware that nato and

independenty journalists have said that russia is supporting the rebels with troops and supplies. the russian president as he left russia will not let the rebels be defeated in the east of the country. i was over and you might be able to elaborate exactly what the president meant. does that mean that if necessary, rush is prepared to militarily intervene? >> first of all, russia is not alitarily present in those reas no one.,including nato and any other source you mentioned, no one has ever provided any credible evidence to the contrary. logically speaking, can you imagine that ostensibly thousands of russian troops would not have suffered casualties and would not have

had some prisoners taken by the ukrainian forces. none has been shown. none has been proved. what my president evidently will use allssia of diplomatic potential, all its political resources to prevent a military, an attempt at a military solution of the ukrainian crisis. the need for a political solution is something that we share with the european union. ourt was confirmed by minister with the united states and other spread the only way to solution is a political one, through the. minsks why we support the

process. we stress the need for all parties to fulfill their commitments. kiev has been lagging behind in that respect. actually, violating its own commitments with the decree on the economic strengthening of the east. and also, with the withdrawal of the law on special status. >> ambassador, we are going to wrap this conversation up by talking about the economy. earlier said the sages are having no ueffect on th-- sanctions are having no effect on the russian economy. >> no, i didn't. quiteving proven ineffective." we can argue the point. the ruble has fallen by 24% this

year against the dollar. the russian economy has contracted significantly. can i clarify the point? you are saying that reaction in dollar-ruble, that is nothing to do with sanctions. you do not feel that sanctions are having mean a full impact and financial markets? >> of course, the sanctions do have an effect on the russian economy, primarily in the financial sector. but the fall of the ruble or the decline of the ruble has somewhat compensated for the fall of the world price on oil. oilprice for a barrel of measured in rubles has gone up. so the russian budget has not suffered. russian economy has not contracted. it's faring somewhat better than

the economy of the eurozone. the current figures indicate russian gorwtrowth of the economy for this year, modest as it will be, will be around .5% going up in the next three years. >> ok. do you think their nieces the us and you forget reaction within the way the kremlin runs the russian economy as a result of what is happening currently? we heard stories that there is going to be a push to bring now corruption within the russian economy. we hear we are going to get announcements on the present. can you confirm or deny that we are expecting big announcements coming through on the economy? >> i don't want to speculate on what might happen in the future. combat corruption is a perennialin job for any

the russianbe it government or any western government. that is a problem that no single country in the world is completely free of. differentld stress aspect of russian economic policy. substitute some imports with locally produced goods. that is a long-term policy. that is already produces the results. >> ambassador, it has been a pleasure. thank you very much for taking the time to speak with us. the russian investment to the eu. my th ryan chilcote for making this happen. we are going to talk to the brand that is as british as the rain. stay with us for this was of interview with the company's

ceo. ♪

>> you are watching "the pulse." time for another bloomberg exclusive. let's talk britain and bruce hunter, a british heritage man that is moving beyond -- brand that is movoing beyond wellington boots. the company's ceo joins us now.

nice to see you. i have been thinking about your a lness which has come when youo guys ton get over, when private equity got involvedg way. , was the plan to produce a high heels hunter wellie? >> the plan was to take the wellington boot and use that to springboard into new products. one of the great successes we were able to come up with was a boot on a heel. you will see everything from a on heel.oot to boots you've traveled a long way. how much more is there to travel? i'm wondering, is a high heels wellington boot the outer limits of what you intend to achieve? in toing women height rain pours is probably the limit. be something we

could get into. >> that is much more of the traditional hunting, shooting, fishing end of the spectrum. you have pushed aggressively on the more fashion end of the spectrum. you subdivided the brand once. add an extra technical element to it next year. within those three spaces, where is the focus? >> looking at the consumers. focusing on the customer and what are their needs. the customer and the city has a very different need for hunter than the country. in the country, what we want to bring to the hunter field sub brand is that performance, innovative category products that you can really get money in. and be completely protected. >> but when you look at -- the the media focus,

attention has been on the original side of the business. way, the biggest effort has been made in shifting brand perception? customers the biggest opportunity. if you look at asia, the u.s., that is really that younger, urban customer that really is interested in brand. you can see the great phenomenon of hunter on college campuses in the u.s. it is the uniform for girls to wear. that is where a bigger commercial opportunity lies is important we stay true to what we have done in the past. preppie bitill that of the market bet? is it just u.s. college campuses? >> it's an iconic product. you have the opportunity to expand from the core taking that and developing outerwear is. a key component of our growth

strategy. taking iconic parts of the boot and expanding that is part of our growth strategy. >> will you ever be able to go as far as burberry? way gear andraingrea parlay it into a fashion brand. >> the brand can hold lots of customers. it has a global customer base. yesterday i was chatting with customers through argentina. we have great interest from japan, from china. in terms of scale, we can expand the brand globally, which is great news for us. we have the customer looking for a product. as we develop new categories, it gives us great opportunity to reach different customers through outerwear. >> what are the lessons you have learned? there are iconic british

heritage brands that attempted to take them upscale. you look at barbary trying to change the. price point theyook at others and how degraded their core customer. what are the lessons you have learned? we're looking at burberry doing very well. when you look at the landscape, what do you see and what lessons do youngs to avoid see? >> being true to the brand. boot,g the pieces from the weather it is the high heel or the black heel chelsea. that's vital. when we look at how we have

expanded categories into outerwear, it is fashion, but it is also providing some functionality, which is part of what the original boot has done. >> by your header behind? behind. or when your general dr. calls you up? >> we did a copperheads a five-year long-range plan. our management team went back and looked at that. it is all there. what we have said we are going to do, we have executed. if we can stay on track for the next couple years with that strategy, i think we will have a great future. e strategy is what we have seen already. you now know what the next two years look like. you want to expand geographically around the world. the trajectory, that is it. >> yes. so, now it is about execution,

delivery, customer service, and looking at how we roll out -- >> do you need to change the team as a result? >> no. >> a new creative guy has made all of these changes. has shifted the brand's section already. do you need to bring in different kinds of people to execute the plan rather than having to create eternity -- the creativity of front? >> we have done this this past year. we have brought in a world-class team to support sales and merchandising or marketing. i feel he has the foundation to get to the next level with the rent. >-- with the brand. >> creative directors have stepped it to become ceo's. >> alastair has a great left brain-right brain. great team that has a lot of different skills from a lot of great industries. the balance we have now is going to be great future growth. >> where are you investing money at the moment? you invested in brand. you talked about the strategy,

talking about the trajectory over the next two years. are you investing in say technology? a lot of companies are talking about fashion and technology merging. rainwear we seem to be a great area for that to happen. the investmente opportunities? >> in terms of fundamental investment, we have made in a supplybal system to growth. in terms of being innovative, it is important part of our gender. how can we incorporate technology into the store? we have just launched a global website. how are we being different? if you gone there, there are some amazing things to enhance the consumer experience online. how we can bring innovation to product. you will see that evolving next year. you'll see real focus on innovation.

>> and the technical stuff? what can we expect from that? what kind of fabrics are going to be talking about? something different than what we see and the more field stuff which keeps you dry and keeps your feet dry? >> we're working on the next generation wellington boot. >> what does that look like? >> this boot from 155. we -- from 1955. we've evolved the product. if you fast forward 10 years now, what with the next boot look like. >> are you going to give me any clues? fundamentally, it is something that keeps my feet dry. but something beyond that, yes? >> absolutely. >> i'm intrigued. you are guy that has been around this industry for a long time, at the moment do you see any

heritage brands in britain that are being underused? think there are some great brands that are not necessarily london-based that are out there and brands we have talked about working with in the past because i think there could be great synergies between british friends. but there are some small brands -- >> still potential to do it agai n. a classic, it was the bottom half of the hunting -shooting, fishing for -- b rigade. there are other brands out there you can do some of things with? >> the biritsh attention -- the british attention to detail, cressman ship. i think there is some really interesting opportunities with british brands. >> thank you very much. i'm intrigued as to what the next generation of wellington boot will look like. we'll find out. nice to see you.

the ceo of hunter joining us for antics was of interview. that just about wraps up the show. that is thursday. " surveillance is coming up next. we will see you tomorrow. ♪ .

>> the president speaks tonight. immigration and health care policy collide. republicans say the president has no authority.

japan is japan. europe each day more like japan. what does it mean for american investors? 'tis the season for reach of america. everything the season must go. everyone, this is "bloomberg surveillance." is thursday, november 20. i am tom keene with scarlet fu and brendan greeley. time for our top headlines. presidentt with obama. he will be outlining the biggest changes in immigration policy in a generation. the political firestorm has a ready begun. the president is expected to remove the immediate risk of deportation for up to 5 million undocumented immigrants. he may also extend visas for high-tech workers. republicans accuse him of exceeding his authority. here is new jug -- new jersey governor chris christie. >> the