>> fury in ferguson. the white police officer avoids charges for the killing of a black teenager. president obama urges calm as chaos erupts on the streets. >> bank of england governor mark carney said the fx role in the scandal is likely to take center teenage. >> pope francis weighs in on the opics drag europe. youth unemployment.

>> good morning, everybody. welcome. you're watching "the pulse" live from bloomberg's european headquarters. we're right here in london. i'm guy johnson. >> i'm francine lacqua. appears before parliament in an hour. the german bundesbank gives a briefing on its financial stability review. >> let's bring you a bloomberg exclusive. one of the key figures of the e.c.b. has told us, more specifically francine that a rush to add more stimulus is not necessarily on the table now. executive board member said the central bank will debate all options and hinge any decision on incoming economic data. >> we are ready to do more if

needed. we are watching the situation extremely carefully. we are discussing it when we meet next in december. there might be situations where we would have to do more. >> the market's interpretation is now you feel much more comfortable than doing what you did just four weeks ago. is that fair? >> we have to watch the economy very carefully. we have to understand how what we have already decided works. we're not going rush to a new decision without knowing what we have decided works. we have to look at the dalt around us. -- data around us and we have to discuss all possible options, particularly when it comes to buying new assets. tltro's. ot about

it wille convinced that be extremely helpful for banks o be able to lend again. i expect it to be more substantial, larger than the first installment. >> how much are the charges that the e.c.b. will do more -- chances that the e.c.b. will do more in december? >> we have a discussion in december. we look at the numbers. we look at how the economy is doing. we look at what we have been able to achieve. a couple of days ago. we have the discussion and if it is in december, it will be later, we're not -- any particular timeline. we want to be -- in the economy.

>> that was e.c.b. executive board member benoit coeure speaking to us in an exclusive interview. in a few minutes we will get reaction to his comments. >> the united states has been chaos in the streets in ferguson, missouri over night after a grand jury decided not to indict a white police officer in the fatal shooting of an unarmed black teenager. michael brown in august was shot dead. authorities fired tear gas. cars were set on fire. businesses were looted. president obama appealed for calm. >> i join michael's parents in asking anyone who protests this decision to do so peaceful. -- peacefully.

michael's father's words. hurting others or destroying property is not answer. no matter what the grand jury decides, i do not want my son's death to be in vain. i want it to lead to incredible change, positive change, change that makes the st. louis region better for everyone. >> the bank of england governor mark carney will be speaking in the next hour. he will give testimony on the quarterly inflation report in which the bank of england lowered forecast for growth and inflation. we'll bring you carney's remarks live when they happen. >> also pope francis will deliver a speech and address unemployment and immigration. in a meeting with bishops last month, the pope alluded to rising unemployment as a big

issue and described the continent as wounded. >> coming up, we'll meet the man and the robot behind this revolutionary gaming technology. >> we're looking forward to that. that's what they look like. the studio is being controlled by its inventor. why this could be one of the great gadgets for christmas. everything goes to your smart phone but robotics one of the top stories we're watching here. we'll talk about that on the program. we have some great packages to show you as well. we'll see you in a moment. ♪

>> french manufacturing and business confidence numbers both beat estimates. we're counting down until thursday when the e. sumbings expected to make an official announcement on whether or not to penalize the economy for not meeting 2014 budget targets. great to have you on the program. thanks very much for coming in. in interpret s of the notables, how significant is it if the european commission doesn't slam down france on not adhering to the budget? ask forsaying they will 4 billion more cut or they will

give some extra time until march 2015 to achieve it. so far we don't know. what we know pretty much for sure is that germany has lost lost ence, completely has confidencing french ability to reform itself. >> how will the markets position for this? do the markets care about this? is this something that is more politics than actual economics? what is the story from an asset manager's point of view? >> we're talking about a low. right now it is not seen as an asset. with relation to what's happening in france because of the policy to central bank. as long as they remain accommodative, they should be

able to do well. we see some widening of the -- the o.a.t. could be in trouble. in term of french equity, at cap 40 company, the global company, they will suffer less on french environment. >> nofect basically is what you're saying. it doesn't really matter from an asset manager's point of view in the short-term. if you're looking for a job in france, it matters to you greatly. i don't think it matters for now. having said that. if you have a large country within europe which is seen by other country not able to reform itself by itself, it captain be good news. >> a french discount. we used to talk about the

italian discount. if what you say is true, a lot of countries are seeing france as not being able to reform itself and there must be some 40 of discount even to cac stocks. >> an investment in france. there is no confidence in rance. compared to germany or netherlands. >> should there be? >> i think we rely on the -- depend on france. personally we don't have specific barriers against france but we think for example a bank will benefit from the e.c.b. -- and they should be able to do well. it is a large french bank. because of the -- the bank should be able to do well. >> when do the markets start to worry about france?

because of what the e.c.b. is doing and they don't worry about the big companies because they are diversified around the world. 2015, 2016? if they can't get their act together and figure out a way to put up a decent candidate, at what point do we start becoming seriously concerned about it? back at 13%. it is terrible. i think that we have -- wea a problem with a far right. -- we have a problem with the far right. in 2017, there could be a hang arliament. i think that could create a -- and a reaction in the market. >> when you say that the germans

now think france is unable to reform itself, is that one of the reasons why the commission may be more slack on france or are they going to go much harder on them? what do you feel? >> i think within the commission, mr. juncker wans to make a compromise. we need to try to find a compromise between france and germany and the idea of giving france time in order to find like 4 billion. i think that is the main thing. having said that, if, you know, a lot -- there is not -- a lot of smaller countries that -- portugal, spain, ireland, they don't see -- a very good positive attitude. it's been good for this country.

we see the benefit -- sprain, for example now and ireland. there is no reason that france, just because it is a bigger country, should have a more lenient treatment from the european commission. > political situations are pretty tough here as well. >> still to come, we're going to keep the focus on france. we're going to look at how one french firm is seducing commerce home grown lingerie. the french very much still have a va-va voom. we'll see show you that later in the hour. ♪

>> 20 past 9:00 here in london. welcome back. you're watching "the pulse" live on bloomberg tv, streaming on our phone and bloomberg.com. the latest twitter user to have a so-called d.m. fail. we're explaining what happened

and how this tweet went out. ans? so this is what you call a hash tag fail. >> so this is a question. >> tv is an official medium. it usually has sound attached. >> this is a big oops moment. what is your biggest oops social media moment? >> and yours is? bloopers onlenty of television. that is something. we do it regularly. >> we'll fix the technical stuff and get back to hans in a second. >> he has some great stories to tell. we're going to move on now.

the growth in the u.k. compared to the rest of the u.k. can be seen clearly n the largest home improvement retailer, kingfisher. we were talking about it just a few moments ago. france. >> not doing so well. feeling the pain because of a list of problems in france which kingfisher group, europe's biggest do it yourself home improvement retailer in europe has outlined. >> not necessarily home improvement. not necessarily related. >> whether they are wreaking havoc on their own houses, they are on their own economy. france is pretty much bleeding for kingfisher. weak consumer confidence. higher taxes.

all of that has made it a pretty difficult quarter. he is handing over the reigns of wer to the head of the castarama group. clearly shows the difference that is going on in france compared to u.k. >> the u.k. is doing really well for kingfisher. > exactly. s well as b.n.q. when you dig into their numbers, little things catch your attention. china is doing badly. spain is doing badly. poland is doing badly. russia is doing strong.

yes, profit sblet hurt by the fx currency translation. >> i guess the base was much lower last year. they were nonpresent last year. now it is growing by -- because the base is so low. >> they are surprised by how strong the market was in russia. we're starting to get a really interesting picture painted. manus has a beady eye on the housing market. is it actually cooling? are we seeing the euphoria coming out of the london and english housing market? getting some varying views. an online portal, you can go see what is on the market there. they are trying shrug off any concerns in the u.k. market. yes, you economic challenges. nounch this will impact our

numbers. -- none of this will impact our numbers. we just had nationwide come out. they said some interesting things. housing market definitely cooling. but overall, it is not suddenly halted. hasn't fallen off a cliff. competition has hit mortgage lending to the tunche 32%. her actually far less. competition is rife. everyone has basically said the market is not as you foric as it was. >> amazing because it is the go-to place at the moment. thank you so much, caroline hyde there with the very latest on the property market. there is a little breaking news from san and the ar. thelvarez has been named as c.e.o. of santander.

i wanted to check the details of what's happening here. we'll get more details on that in a few minutes. antonio alvarez has been named c.e.o. there. >> the share price is gaining. >> the share price is picking up. we'll have more details out of spain as we get it and bring you to full story. that is headline. jose antonio alvarez named as c.e.o. of santander. >> let's get back to the twitter story because hans nichols is in berlin with the very lathesd after a 2013 financial officer struggled -- after a twitter financial officer struggled to send a message. what actually did he accidentally tweet? >> well, what he tweeted was a potential m&a -- a potential target, francine. when we're talking about twitter in general, we can't be glib

about it because of our own technical failures here just a moment ago. here is what happened at twitter. this is the company's chief financial officer and here is what shent out. it clearly indicates they are looking for some sort of acquisition. i still think we should buy them, he tweeted. he is on yore schedule for december 15 or 16. he will need to sell him. i have a plan. we have all made typeo mistakes in twitter. the question is have we ever done it when it is market moving? we don't know who the potential company is. if you had a meeting december 15 or 16, you can be assure their high brass is thinking about acquiring you. twitter hasn't said a whole lot about this. deleted after it

was sent. there is speculation over who twitter might be thinking about acquiring. the irony is that he helped twitter raise 1.8 billion so they can go out on a buying spree. looks like he has the cash. the question is does he have the discretion? you,t to know from each of what is the most embarrassing twitter moment you have had? we'll keep it clean because this is a family show. >> we'll have to get back on that. i'm a little bit skeptic. can you really do such a big blunder? why are you direct messaging your boss saying i think we should set up a meet for you? >> it is a private message that you use like email. these guys use twitter like email. > all right. hans, thank you.

>> it is a big mistake. >> yeah. with his oops moment. coming up, we have more on twitter and we have more on the pope. ♪ .

chris welcome back to "the pulse ." i am francine lacqua chris i am guy johnson. states, a grand jury decided not to indict a police officer for the fatal shooting of an unarmed black teenager, michael brown in august. authorities fired tear gas. cars and buildings were set on fire and businesses. these are live pictures from

ferguson. decision-maker of the central-bank said no rush to add stimulus to the eurozone economy speaking to bloomberg. an executive board member says the bank will look at all options at next month's policy meeting. he said it is a concern. -- that news came out in the last few minutes. it is spain's biggest bank. >> the french economy may have barely grown in the past few years, the manufacturing and confidence numbers are better than expected. a sliver of hope. a feeling they should be optimistic at the moment and they are betting made in france lingerie can still thrive. ♪

naughty.s called brand.lingerie online from as far as the u.s. and china. even though keeping the products made in france is not always easy. >> we are looking for 300,000-500,000 euros to develop internationally. the labor in france is higher. is a drastic change to make before going global. >> the global market for lingerie is estimated at more than $2 billion. france is the world's biggest. entrepreneurs are betting on quality materials to capture the growing market. he wants to keep the production and friends in his hometown.

-- in france in his hometown. >> when you are in france, you can [indiscernible] incentives created this company. he said being based in france against trickier after a couple of years in business. >> you have to pay taxes, it is a lot. when you start, it is easier in france. obstacles, both rely on the country's image of fashion and luxury. the touch of course. it is anonymous with class. >> you can be a romantic. you could be a sexy boy. >> bloomberg, made in france. bit of whatttle

light italy has. high-quality products. the little french -- >> that is the right. -- jenison kwok. >> let's switch gears. >> let's move on. >> a massive problem around the world. it is a serious subject. a cure.ch for once for a start up. let's find out what is going on. elliott gotkine has more and joins us from tel aviv. >> good morning, died. i am joined by dan, a chairman. they may have found a cure for type one diabetes. you have the device with you today. a not quite anm artificial pancreas will parlay that way. is int we have developed

this implant called in air device which contains real living sales. sales in our bodies are responsible for excreting insulin. if you do not have that component of the pancreas, you are going to be a type one diabetic. you have to inject insulin externally to control your sugar levels. theou do not have immunosuppressants if you had a pancreatic transplant? real,n though it is a working transplant, there is no need for -- with engineered protective mechanisms into it. the other issue is we have found ls areat pancreatic cel when the biggest consumers of oxygen in our body. they make 2% of our pancreas and that consume around 80% of the oxygen coming into the organ. what we have done is enabled a

supply of oxygen to the device. that enables us to put in a lot and hopefully pages will be without the need to inject insulin externally. cells.put in many more >> it is implanted into a patient and then to top it off with oxygen, you would have to have an ejection. the injection. >> it is implanted into the abdominal region. ,t is a very simple device external device with which you can supply oxygen. it is a tiny needle was the daily that will not be a major issue the way we see it. -- and when would we see this coming to the market? when should we expect to see your device in the market? >> our phase watch while has started already in sweden.

we expect to launch in europe around 2017-2018 and a couple of years later in the states. verse $21 million so far, will it be enough? -- you have a raise 21 made us so far, will it be enough? there are many patient out there that need this device. the more resources we have the moral will to the to the market. have, more resources we the quicker we can get to the market. [indiscernible] we are trying to work on a cure. are we size of markets looking at with potential revenue? a multibillion-dollar market. we are talking about 70 million patients worldwide. 3 million in the states. forward to having you

back. the chairman and we wish you the best of luck with your device. i will hand it back to you. >> thank you very much. elliott gotkine, our middle east. and the mining sector. rio tinto. s after thek minor break. ♪

>> "the pulse welcome back to -- >> welcome back to "the pulse." a deal could still be in the cards. campbell. is matt is the deal getting less likely or more likely? >> a tiny bit of background. a briefing given by a mining banker in london this month. his take in this presentation which was obtained by bloomberg news is this deal is almost certain to have happen sooner or later, basically. the industries dynamics that the chief executive ambition to make acquisitions and make the deal all but certain. ossicles tofew this. glencore has ruled themselves .ut until april of next year

beyond that, it seems i week of going back into the situation. me, he likes to let things percolate and let the ground shifts a little bit and then he will come back and make it happen. it kind of fit the strategy. the rulebook. >> and there are a couple of things. the broad, psychological gestalt which he seems to be getting out. there is also more practically, some numbers on his side. one is the iron ore price. there's almost no one out there that is iron ore is going anywhere but down or flat over the next year. rio is principally a minor of lien or. relativeo that, the values. glencore is still a smaller company that rio tinto which economics 101 tells us very

difficult for it to take over a larger company. as time goes on, those market cap are converging, helped by the weakness in the iron ore price. a psychological sense and a very practical dollars and cents a way. >> what could get in the way? there's always the andtion of do liza burke other executives want them to make a deal this dramatic. does rio shareholders want to be bought at what would be a very slim premium if any pregnant at all? there's a antitrust. -- if any premium at all? affect ona big anything we console. the m&a,rest of anything else we're looking at?

>> it is relatively quiet. there. floating out beyond that, we are seeing a little bit in the oil space. u.k.,l oil deal in the the oil price is way down. all of the people are expect it but it is pretty slow. >> can't i ask one final question -- if you were a player in the iron ore market and you are watching these headlines, it would be a reason to be cheerful getting no prices are going to go up curry -- are going to go up. >> they have been critical of big minors for flooding the market with the various commodities whether copper, gold, or whatever else. that was soon to be the long-term plan. if you are in the market to get from here to there, quite a bit of pain. but initially two years before the deal would close.

>> matt, thank you. matt campbell. from bigmove on machines to the things out of the ground to small robots. app in the united states, the future of robotics is taking shape. it integrates directly into our clothing to monitor and assist our movements. her research could someday lead to revolution and what we wear from rehabilitative clothing to military performance to everyday athletic gear. sam grobart went to meet her. >> when we hear the word robot, a typical image comes to mind. robots all share something -- they are rigid, often made of plastic which makes it difficult

to perform delicate tasks. that may be changing thanks to a fairly new field called soft robotics. >> it would be exactly what it sounds like. robots made of all softer materials. in many applications, that makes perfect sense. >> this is rebecca kramer, she wherehe fabrication lab they looking too great a different kind of robot -- one you can wear. and youare really soft want to wear robots or technology enemies more sense to me to try to integrate the technology into what we already where, our clothing, fabric. >> the wearable robot is not a new concept. researchers have been working with exoskeletons for a while but they were clunky, hard friends and large battery packs.

rebecca it matches wearing what you would not know was there. >> long term, what might exist in the far future, i think of completely innovative soft witheletons that will go our motions and seamlessly so we do not know we are wearing the technology. definition, alest robot consists of two parts -- sensors which cap monitor motion and temperature and light and actuators among the motor or muscle that craves movement. morer sensors are much longer than our actuators. thoseturns out making mechanical muscles out of soft parse is incredibly difficult and solving the problem comes down to one thing -- material. >> insult robotics, materials cannot be ignored, the central component of how the robot functions. the robot will behave differently and stretch it

differently. >> a number of material options are being explored that may help movement like pressurized gases or accommodation of google compounds called hydrogels. to is made from a metal remember a shape. >> we work with shape memory alloy. you can get them in wires. we literally use a sewing machine to incorporate these into the fabrics. >> what you are seeing is that shape memory alloy sound into a clock. sewn into the -- cloth.-- her research received funding space exploration. future applications may include smart athletic wear like a yoga

pants that could correct your form a rehabilitation clothing. a soldier needs to travel a long distance and if you could take away a small bit of the energy going into every step and over longer distances, you can enhance endurance. it is very exciting to think we might be able to change somebody's life one day. >> what rebecca's team is doing is not bring a new market to expand what is possible. to completely change the way we interact with machines on a daily basis. and what they are doing is successful, it may not long before the world robot has a different name. >> is amazing what we can do in ourfuture to help people, bodies. >> i would like to improve my posture. something that would work so well for so many people. you did about how your body moves and everything.

if you can fix that with robotics, think about people with broken spines, broken bones, broken everything. >> 2015, we talk about the fact in europe, we do not do enough air reforms. and then the robotic space, there is room things being done that can help us in our everyday lives for in our next hour, we'll continue that covert --tion with fighting robots would continue that conversation with fighting robots. >> this is something you can have at home and have fun with. a hugeure of robotics is story and we'll talk to the inventor of these metal monsters. i saw the guy that is behind this picture. very impressive stuff. the question is -- how easy is it today from a small start up into a big business? we will find out when with come back with the ceo of reach robotics.

let me take you in a different direction. from robotics to something that actually is going to be a hard challenge for unemployment and the idea that robotics is going to change everything we do. we will be addressing those two subjects and the issue of unemployment. he is addressing parliamentarians and leaders from around europe on the issues that divide us at the moment. an and integration. how to lose all those two problems? -- how do we solve those two problems? live pictures. we will come back and talk about that a little bit later. ♪

>> welcome back to "the pulse." are seeing live pictures from strasburg "francis, he is just arrived at the parliament, you're looking at live pictures. he will address two hot button issues, unemployment and emigration. our correspondent is with us. what is the pope expected to say today? >> hello, francine. the focus is to discuss the issues of you were talking about. part of his papacy is concentrated on issues of poverty and that is why he he took a vow of

poverty. he is worried about unemployment and emigration and social issues that will make europe slide backwards and creates tension, social tensions and worried about young people. he settled if we do not help the you that he said if we do not help the young people, there is no future. this addressing the bishop and the families and he is concerned about unemployment. he's a people not getting married and buy houses. people are not getting married and buy houses and you would no longer have a healthy society. alexandra, many people argue we do not have leadership in europe. politicians are not making a difference and that cannot shoulder the heavy lifting required to get your back on track area what differences do you think the pope could make?

>> he is a very charismatic figure. europe does not have very charismatic figures right now. is seen as a bureaucratic blob that does not act. somebody was recognized and well known and he is been known since the start to go straight into issues that are not necessarily religious. a lot of people have criticized this. he is not visiting the cathedrals, he is going straight to the parliament as we see from the images. he wants to make a difference politically and perhaps he has the clout, the personality to do so. a reminder it is the first visit of a pope to strasburg since 1988. ,nother very charismatic figure it was john paul ii aims a very strong pope as well but a different time. it was before the berlin wall came down. very, very important visit from the pope.

>> thank you for all of that. you, you cand follow both of us on twitter. we are back in a couple of minutes. ♪

>> a white police officer avoids charges for the killing of a black teenager. chaos erupts industries. >> the bank of england mark carney faces -- live pictures in a moment. chris shakeup. the biggest bang out is such -- chief executive. >> good morning.

i am guy johnson. >> i am francine lacqua banks are taking center stage. thatcarney is testifying an independent member of the bank of england, one of those to vote forntinuing rate hikes in the u.k.. we have a seven-to split. we will be hearing from carney very reason shortly. we have a 7-2 split. offensively, we're here to talk about what is going on with the >>lation report -- but -- probes may take the central stage. >> the row it did play, didn't

play, members did play, didn't play in the scandal. >> of their are giving a briefing. we will get the news on that. and prices in germany. they are flagging. the german bank is risking property losses. and we will bring you anything. -- anything that comes under the conference. what hat in the past 20 minutes or so, the german finance minister and german us remain the growth engine and tock to the rules an example others. all of your must carry out structural reform. much -- the idea

of austerity has led the way that europe should be going at the moment. others like france or italy, they disagree. >> let's talk about france. breaking news. let's talk about spain. the bank has ousted its ceo. they have nominated their cfo to the top position. caroline hyde joins us with the latest. is a huge bank. it is a bank that has seen change at the top because when the chairman passed away, his daughter was put in place over two months ago. >> september sheets into the hill, september 9 when her father passed away from a heart attack. helm, september 90 when her father passed away from heart attack. she is taking control. she is exerting her authority. she is shaking up the helm.

will step down. 20.as been ceo since not even 18 months. he is replaced by the cfo. has beenngly, jose there a significant amount of time. he has been the cfo since 2004. he has a decade of how to negotiate. loans that had a bad bank in their domestic area and they're looking to the u.k. for growth in particular. of chairs. you are given the head of global marketing, jose to become cfo -- ceo. and a global wholesale banking in the u.k. will become global banking marketing. >> talk about the history of these guys. walk us through the history.

>> it was a surprise. hobby eric took to the -- hobby tothe helm.er took spec he knew what he was doing and a good judge of character. he had led the insurance. a credit where it is due. we are seeing profits pick up. and he is photo lower cost. gained and focus more on higher value part. and you have to wonder how much of it is him and how much is the chairman as well? if you look at the share price under the premier cfo's tenure, precisely nothing. where we were back in april of 2013. i do not think it is done that good of a job. beatt up 52% that

analysts' estimates. nobody felt he was right for the job. >> caroline, thank you. caroline hyde. >> i want to take you back to the treasury select committee in the u.k. that is currently growing and is governor mark carney speaking and now. >> the judgment of the committee , there has been some marginal an spare capacity between august and is my reading of the data would've made progress on employment. participation has fell back. now moves relative to desires. if we look at total hours, the increase over the past three increased lessas

than what we have expected. and mapping together our andmates with which i agree wage behavior which has been broadly consistent with our expectations in august and underline productivity and growth which is flat want to add just a you have to adjust up to get a flat. i would say is consistent with the spare capacity in the range of 1%. crazy of a figure of 1% in the inflation report -- >> yes. >> the only reason i am raising this at all is asking really given the estimates. do you believe it? >> i think it is useful to provide a central estimate, but is equally important to stress the wide range of outcomes around it -- let me put it this way, we are not [indiscernible]

an estimate of spare capacity. can i take you to forward guidance briefly? of -- it to the effect must,.licy, or it -- it must come or have that effect. isn't it really the other way around? introduced in a time when it's time has gone? well, i do not agree with that characterization, chairman. committeeived, the had split opinion on whether to provide additional stimulus at the start of the recovery or policy at his current level. in addition, the committee was managing policy in a way that

they zone is forecast is was on would take up to three years for inflation to return back after a piano -- period of above target. the committee was looking through a number of one-off factors and recognize their response in the economy. but the balance discussion was about whether or not to provide additional stimulus or hold policy. agreed,ing was, which i was providing guidance at the time -- the state contingent, we would not be raising interest rates on till we saw the point where we saw unemployment fall to 7% and provided greater clarity, not just in financial markets, but to households and businesses that we're not going to take risk with his recovery. people in the early stages at the time. that message got across and you can see it particularly in firms

as we would around the country and visited with thousands of business across the united kingdom. businesses understood the message. -- one thing they do not have to worry was interest rates going up. if you map reaction to the managersin purchasing and diseases surveys and other things, historically, mvc would've raise interest rates at least two times over the course of unemployment falling. to -- i- i refer you will refer you to my colleagues's speech which will provide the evidence. we had -- we provided that clarity. it was helpful. it helped provide greater certainty and was one of the contributing factors to building confidence and securing the

recovery. once we got to the point where unemployment had fallen to the threshold of 7%, we did exactly what we said was going to do and step back and assess the where to and decide set policy going forward. we provided guidance to two aspects. somewhat technical but important guidance to financial markets, the asset purchase facility where to reinvest or think about selling assets or conditions for those and provided that clarity. and secondly, guidance of what we felt as -- as we reference as the medium term of policy was likely to be an expectation on a promise. this expectation that once to raise began to increase and our very clear message from the different views perhaps on the precise timing, we're all in the

camp of expected rates to increase over the forecast. increase, that have a policies likely to be limited, chris -- limited increases at a gradual rate. i found that and talking with businesses across the country him and they understand that message and a perspective it provides. guidance has a role in my opinion in the communities opinion. particularly in managing the exit from exceptionally stimulative policy or exceptional policy act of the lower bound, 20% plus of gdp and assess we purchase. a host of unconventional facilities that will be winding down and provided context, absently at the time for the policy which is why we continue to pursue it. >> thank you. and then the professor for the same question. thinkkely do you

inflation is going to further undershoot? the forecast to which i subscribed has balanced around the risk from the upside and the risks on the downside. atrobability of when we look -- when we look at inflation in a constructive light, likely as 1% that it would drop below in the near future. up toion pushed it back almost closer to target. and by a number of factors. , andf that is improvement improvement in the external environment. some of that is the domestic economy picking up a bit with

consumption. driven by primarily by household savings lower in the early part and productivity and the later part of the period and business investment around current levels. it is quite difficult -- you can see the risks especially the external environment which could lower than expected demand and that would push down inflation and you could see the risks in the supply side of the economy with the inflation expectations, we do not get the increase in pay when needed to push. >> deflation -- >> i do not know. there is a possibility it could be lower. slightly on the downside but that is not, we do not have the deflation. >> same question to you.

>> we look at inflation and breaking into two components. fed cup on driven by external factors including commodity prices, oil prices. and then look at domestic pressures. when you look at the extra somers, you will have severe drag on inflation over the next few months at least. oil prices, commodity prices and the effect of sterling depreciation from march of 2013 to the middle of this year. factors still building and will be felt through the end of this year and next year. just external factors should be powerful and continue to keep inflation low over the next few months. port upon is at the domestic component and we track a number of measures generated inflation to understand that. those measures are also low. and sunset should continue to keep inflation contained for

now. as we increase, domestically generated measures should pick up. stay lowinflation will on the next few months and under our target of 2%. i do think it will start to increase and headed back of our target over the medium-term. consensusderstand the , the undershooting of the target. to persist on the possibility of further undershooting and deflation, i just want the governor -- have you done any kind of work in the bank or any formal discussion in tools to loosen monetary policy.

of things. couple on context, likely or not that inflation will go under 1%. more than likely i will write a letter to the chancellor in coming months as professor forbes indicated external factors are important but domestically generated inflation is not particularly well pronounce. we expect it to pick up. as john said, it will take some time. in fact, and dented in our forecast, falling oil prices, etc., to have dissipated by 18 months out. we still do not get it back to target on the forecast until the end of the forecast which gives you a sense. the -- the question, your question around additional easing, just want to be absolutely clear that the discussions we have been having

as a committee including our most recent has been the case, timing, degree of tightening the policy. just to be absolutely clear it to not make any comments that suggest anything to the contrary that there is no change in orientation of the committee particularly because -- >> and that is why ask the question. >> if we have formal discussions, it would've been admitted as you both have noted. discussions of additional options and indicates we needed to provide additional stimulus and the last minute. i will state the obvious that a given the track record of the mpc has considerable flexibility to provide additional stimulus if it were to become necessary. host of unconventional policies. i will say this though in terms of my personal view of stance of policy at the zero level bound which is there's a difference

between conventional and unconventional policy. and not a smooth continuum. there are costs. margin, one looks through these effects added the zero level doesn't zero lower bound and one does not -- and the biases not provide additional marginal stimulus on unconventional added the zero lower bound and i will repeat myself. i want to be clear. my expectation is the next move and policy will be increasing interest rates. what has happened in the three months since august is the global economy, some disinflation every precious largely from abroad and the combination of those mean that the curative tightening of policy is likely to be less than what we would've thought. >> what can you make of the ecb

's introduction of interest rates? ecb is an the acknowledged difficult position simply refer to government rockies speech where persistent -- governor mario draghi's speech where it looks likely to persist in the absence of policy response on a range of policy responses which included negative interest rates. and judging where the lower bound is, judging how low interest rates can go, there has to be an assessment of domestic financial markets and domestic financial institutions functioning and that environment. one is major differences between europe and the u.k., the importance of the society sector and the pass judgment has been reasonsbasis points for

to do a short term collateral-based market and really the function and also the impact potentially on society criticbility and transmission. the judgment was fitting baseboards was the effect of the lower bound, which asset purchases began. if ever we were to be in a position, that we had to revisit the provision of additional stimulus and were not in that position today as you know. i was late, we would revisit as financial markets of all profitability of institutions to it just. st.to adju years ago when the committee was talking about the ideas there might be out somewhere deflation and warned about inflation and why did they get it so wrong?

>> is always said there are of then both sides issue. what we have seen over the course of the past few months which is been a large driver of inflation would've seen over the past year and low inflation and the governor that john mentioned this morning is due to external factors. largely, commodity prices combined with the rising theling we saw earlier in year. inflation is a relatively volatile component when driven by such movements of international commodity prices. i would not suggest we got it wrong. if you look at the forecast, inflation has come down rather fast than we had expected. forecast has been conditioned on oil price fall rather quickly. data -- wouldn't you [indiscernible]

those -- onene of of those -- one of the dangers and what itation should've been doing is encouraging. .ay increases >> i do not think it is my job to a current wage inflation. as you will see from the minutes and from my record, i am still ofcerned by the prospects wage inflation over the course of 2015 and 2016. >> we are going to leave westminster but cuts want to bring you another huge news event. pope francis is in strasburg speaking to the parliamentarians and he is about to start speaking. let's listen in. >> thank you for inviting me to a dress this institution, which

is fundamental to the life of the european union and i thank you also for giving me this opportunity to speak through you. to though more than 500 million the 28 member states whom you represent, especially grateful to you mr. president. for your warm words of welcome and did the whole house. -- and in the whole house. it comes more than a quarter of a century after pope john paul ii, a great deal has changed since then in europe and the whole world premiere are no longer the opposing blocs which divided the continent into 2. gradually, the hope is being withzed that europe

institutions will one day reach the full dimensions of geography and even more history has given it. as the european union has expanded, the world itself has become more complex and ever-changing. increasingly interconnected and eurocentric.s less despite a larger and stronger , europe gives the impression of being aged. weary.re he -- world there frequently looks on it with aloofness and mistrust and even at times with

suspicion. as i speak to you today, i would like as a pastor to offer a message of hope and encouragement to all of the citizens of europe. hope plays on the confidence that our problems can be powerful forces for unity in working to overcome all of the fears with your together with the entire world is experiencing at the moment. the message of hope in the lord. death into life. it is a message of encouragement to return to the firm conviction of the european union. a future based on the capacity to work together and reaching -- in bridging divisions and fostering fees and fellowship between all of the people -- >> is a first-time go the hope is fading and public about the european union and telling

europeans to almost cheer up because it's tough out there in terms of unemployment. in recent only popes memories to talk about european policy. we are live on the ground in ferguson. much more. ♪

>> welcome back to "the pulse." >> these are the top headlines. >> the oecd has just released its economic outlook for november. the chief economist is just spoken with bloomberg and described a pessimistic picture for global growth. >> the global economy is in a low gear at 3.1% and we are only expecting it to get up to 3.9% by the end of our projection period, and that is below the

long-term historical rate of growth and we really should be which more than that, 4%, is the historical average, because the emerging markets are a bigger share in they tend to grow faster. it is really not a good picture. named as a internet over us as ceo. that news came out in the last hour. spain's biggest tank, europe's biggest -- second-biggest bank. talking about the hot button issues of use, unemployed, and immigration. these are live pictures of the pope. , --thing we need to walk watch, talking about immigration and how to get europe growing again. a picture that someone who is very much on the issue of immigration at the moment. interesting, the pope

speaking of parliament, the ,ositioning of those two themes trying to talk about a positive story. your maybe feeling a little better about itself -- it europe feeling maybe a little bit better about itself. westminster, the governor of the bank of england and the policy committee are talking to parliamentarians about the latest inflation report. not much of a reaction in the pound. we've had mark carney making it very clear that he feels the next rate hike -- the next move will be a hike. though i think he is fairly clear on missing this, the central guidance on the amount of spare capacity in the economy, the amount of slack in the economy which will have an impact on noninflationary growth

is something the bank really doesn't have a handle on right now. and the senses from him, the inflation will go down before goes up. not much of a reaction in terms of the currency market. these are pictures to the treasury select committee. >> one of our top stories, protests continue in the streets of ferguson, missouri after a grand jury did not charge an officer for the debt of an unarmed black teenager michael brown. elizabeth campbell joins us now, live on the ground in ferguson. what is the latest? erupted chaos basically in ferguson last night after the grand jury declined to indict a white police officer for the shooting of an unarmed black teenager here in august. everything from businesses being looted, police cars burned on the street, at least a dozen buildings were set on fire.

outsided out the night the ferguson police department were crowds gathered waiting to her the decision. after that, it was a lot of chaos. >> in terms of the political reaction, we have heard the president speak. how much of what the president is saying is being heard in ferguson? >> well, the president told the nation that basically they should heed the decision of the didn't pushand you for peaceful protest. he said from the white house, shortly after the decision was just and, this does not issue for ferguson, but for america. president obama was joined by others, including michael brown's family, and her jim protesters to bps full. and they were anything but peaceful last night. >> elizabeth, what are we expecting today? what we're seeing, either

protests planned? what is the feeling on the ground for the rest of the day? thatsterday, the plan was protesters were supposed to come to clayton, missouri, which is where the grand jury was meeting, 7:00 a.m. today central time. protesters were out, some of them, quite late, to the early hours this morning so we will see what happens. shop fore calls to not black friday, the day after thanksgiving holiday here in the u.s. that is this friday. and calls for continued protests. we will see what the day brings. >> thank you very much for your reporting, elizabeth campbell, in ferguson, missouri. >> in about 25 minutes, "surveillance" with tom keene. what are we looking at today? >> we will look at ferguson, missouri. something in new york city last

night as protesters were in union square down on 14th street. they migrated up two times square later in the evening. it will be interesting to see those protests continue on into this tuesday evening. we will look at inequality in america and the federal reserve policy. we're honored to bring you alan melzer, arguably the most sharp, conservative critic of what all central banks have done. we are thrilled to tag team him david. we will talk to them about lack of inflation out there. we have to continue forward. stephanie ruhle paid $432 for a turkey on sunday. it was a 32 pound beast. it is rumored the family survived the feeding of the early thanksgiving at her

household. we will talk turkey as well. >> i'm delighted to know that the ruhle household is not going hungry. >> she is awesome. she would out and shot the damn things, dragged it home and defanged it, or whatever they do. >> coming up, fighting robots that battle in real time. >> it is not just fun and gaming, there's an educational twist as well. we will be the man behind the company. looking for to this conversation when we come back. ♪

>> welcome back to "the pulse." clocks don't panic, there is not a strange sound affecting your television screen. we will be talking tech, more specifically, robots that make strange buzzing noises. this is not the transformers, but it could be one day. nothing new on the big screen, but battling in real life commitment -- remote control by your smartphone is the future of gaming. the platform is a gateway for young people to learn about asots and try out coding well. let's talk to the ceo, the founder who joins us now.

glad to see you this morning. , iyou are not the real star have to say. this is the real star. before we talk about the business, talk about the product, that what this is. >> this will be the first gaming robot designed to make robotics accessible to young people and older people as well. we're trying to turn the world around so you can control the robots by an apple under smartphone and they battle each other enroll life. >> show us a little bit. this guy is called brutus. you can basically battle it out. you have a friend with a robot -- >> you can pick on your little brother. >> this is how you control it. >> they don't just sit there doing nothing. they have characters built-in. he can show he is excited. you have different skills. for example, flamers would do damage to your opponent.

all of these skills have a real-life implication. >> attacked my tea. >> we have a lot of startups that come on this program, most of them have an app. everybody is very excited about apps. how excited are they about robotics? probablyays, this is something that is when other much more meaningful and bigger impact on our lives going forward from here. >> people are quite excited about robotics. it is a new market. it is been growing for a while. development of the smartphone industry, for example, has brought down the cost of electronics component and we can upload in the process we would normally do on the program -- robot through computers. >> and the server will drive all of this. >> exactly. >> how are you developing this? how much money do you need to do your research and is a difficult

to find the funds? >> it is difficult. there is some support out there. we took some grants from the government and some early investors that really believed in us that of done a lot and supported us by helping us to develop the product as well. next is to bring the product to market. >> how much you mean -- need? >> 650,000. >> that isn't that much, really. >> when it comes to app valuations -- two people get put off by the fact this is hardware rather than software? is it harder to attract money because of that? >> that is one of the difficulties in a start up company. yet the initial starting --ital, but that reduces

costs willne your come in. it is the initial capital that is putting people off. but we're seeing a change because of the 3-d printers making it easier to validate your product. those things are bringing -- breaking down the barrier. >> i saw you the other evening when you are presenting this, the product. how important is it to get out in front of people? how important is it to show what you can do? >> connections go a long way. influenceections and is really important because the small startup is really important to partner with these bigger companies or have those connections because that is the only way you will get to market fast enough to make an impact. >> i know these are just beginnings, but one thing we all our ceos, how do you see this developing outgo is it a company you would like to keep more selloff if you are

approached, do you have a bigger vision or would you have to sell? >> i am in this for the long term. i think robotics is going to be in demand in the future. it is also about education and really driving interest. that is something we need fundamentally the u.k. as well. definitely i want to create this company to grow and be the company that is recognized in the theme of robot it . >> next christmas, this christmas, how many homes will have these in them? end of next year, our aim is to manufacture about 120,000 units and go on from there. definitely have a massive plan. we want people to literally turn the living room into a playing field.

then you can start to learn about robotics as well because you want to create new skills that you can then show to your friends as well. >> you can build and add things? if i buy this and you stomach it to add things on -- and you sell me a kit to add things on "the pulse." not just change the way it looks, but the way performs a battles as well. it allows you to tailor the robots. >> in my programming or just buying off-the-shelf? creations the physical you buy off the shelf, then the virtual one restart to create euro and motions and program them. >> that is the idea, it is teaching. you're going to get better. the better of programming you become, the better your robot. >> exactly. we are caught sure your imagination -- captured your imagination. a really good gateway to learn about stem and robotics. >> show was quickly the coolest

thing this robot can do. these are different motions they can do. do when het he can is excited, maybe has won a battle. >> that is a victory dance. >> exactly. lasers andve different things like that. then we have stop, which does see what it looks like. you are thumping on your opponent. >> actually beating up on your opponent. >> exactly. >> i've a couple of boys at home that would find a very entertaining. >> thank you so much. >> other company news, the u.k. retelling group reporting sales up 0.5%. highlighted difficulties in france, which was impacted by

weak economics. the company ceo takes a step down december 8 and will be .eplaced >> staying on the home sector and looking at properties, shares trading higher after the online property search company reported full-year sales of 24%. it says it does not see challenges in the housing sector having a material impact on the company and added trading for urine is a line with expectations. thoughttie's auction -- sought two bags. it is estimated to raise $387 million. >> a bargain. erupts as asie

white police officer avoids charges for the killing of a black teenager. we look at the fury and ferguson we come back. ♪

>> good morning, welcome back to "the pulse." let's talk about the currency markets. mark carney and members of the mpc in the bank of england theng arguing testimony at

treasury select committee in westminster this morning. you are looking at live pictures coming from westminster. fewey saying in the last minutes you expect the u.k. recovery to continue. he says though he would not overplay the recent turn wages we started to see. the u.k. economy remains an economy that still requires stimulus. haven't seen a great reaction as a result of all of this, to be honest. fairly flatlining. the other story we have been watching as and coming from strassburg where pope francis has been addressing parliamentarians and jurgen leaders talking about unemployment in the european union does european leaders talking about unemployment and the european union. i find it fascinating that the pope is on his seat at the center some would say of democracy. addressing parliamentarians and

leaders. we also heard from the oecd talking about his concerns about the eurozone. talking about the fact germany needs to stick to the course and maintain a sense of leadership when it comes to his economic position. little movement in the euro dollar this morning. a suspect the pope is not moving the euro-dollar, but maybe having an effect on the wider debate. >> for look at what we're watching the rest of the day, we're joined by hans nichols. we're starting with the turmoil in ferguson. what can we expect as day breaks? >> hopefully, we can expect some and lesshe situation violence. it would be a challenge is that it goes on for president barack obama to try to strike the right note. he is had some challenging moments in the last few days. he lost his cabinet secretary, defense secretary chuck hagel, needs to find a new attorney general and get that attorney

general into place. some difficult political situations, always difficult in america to strike the right note on race. president obama tried before and sometimes he is been successful in other times by his own admission, has had to go out and clean some things up. a real challenging moment in yet another really defining moment for the obama presidency. >> let's move from ferguson to what is happening in vienna. ministers gathering. we heard dr. carney talking about the impact that oil prices will have on the global economy. in a chance opec will upset that story? >> it seems like opec is talking about a supply cut. you could see the price go higher. remember, prices are not at the historical low, but low as they been for some time. aroundeck it was right $79. that spread with wti is under four.

some ministers are arriving in vienna for this meeting. we have the saudi minister who says this is not the first time there's been oversupply. heading into this, no one really knows what they're going to do but there is a lot of hint. you have been to the end of. they're hinting there's going to be supply cut. we will see what that does to the movement, to the cost and price of rent -- brent. , hansnk you very much nichols, talking about the price of crude. the main it will be covering the story is on his way toward vienna. he was talking yesterday by the fact -- >> you doorstep the minister so we will get breaking news out of that meeting and a couple of hours. that is it for "the pulse." "surveillance" is next with tom keene and his team live from new

york. you can follow us on twitter. up of thenice round main for exchange news in terms of corporate stories. we now have a new cfo for the second-largest bank in europe -- >> ceo. >> the former cfo has become the ceo. it is an interesting story because we are seeing the shaking things up. she is that empower for two months now and it seems she wants to get a streamlined team that will focus on digital, that will focus on bringing the bank that has been seen as a little bit of a dinosaur in the past into the next generation, online banking, things like that. witht me just leave you live pictures of pope francis addressing parliamentarians down in strasburg. interesting to hear what he has to say. matteo renzi listening intently

to what the pontiff has to say, addressing many issues here in europe. fundamentally, what does europe do next? how does it solve this crippling unemployment problem that we have here in europe, particularly, youth unemployment. ♪

>> ferguson, missouri erupts in anger and protest. police to smoke -- police officer will not face criminal

charges in the death of michael brown. in the year of geopolitics, we consider the transpacific response to a new military triumph. -- stephaniestocks ruhle guarantees stocks always advanced thanksgiving week. good morning, this is "bloomberg surveillance." daughter'say, my birthday, i'm tom keene with olivia sterns and stephanie ruhle is with us today. scarlet fu is cooking a 22 pounder. brendan greeley is watching "frozen" for the 14th time. in the city of ferguson, missouri, exploded overnight in violence. police carsorched and looted buildings. chaos broke out moments after the announcement came that the grand jury would not indict the white police officer who shot an unarmed black teenager last august. police used tear gas to try to break up the protest and several dozen people werar