>> a fresh start as the ecb meets in a new building. will they deliver anything new today? we will get the take on the story. >> vladimir putin and the press. we will bring you a bloomberg exclusive interview. raises thest carrier guidance for a third time this year. we will have analysis on the story later in the program.

>> good morning. you are watching the polls. i am guy johnson. >> let's get to our top story. the governing council meets today. will they generate new policies? we are joined by david powell and jonathan ferro. i like the policies. it seems that we will have to wait. >> you listen to what the vice president says down, if you are expecting quantitative easing, they may talk about it in q1. >> he likes a surprise. not go early? >> we were talking about this over a coffee and we said that he is not a controversial man. he says something and it

probably means that he talked to the rest of the executive board. >> we had the interview and he withthat they will help the metrics they are looking at tech watch the balance sheet. >> that is a hope at this stage. are these three that have done nothing to boost the credit extension. we are smoking -- focusing on this and we are waiting to see if there is any progress in reaching the goal. if not, it would be timely to pull a trigger. >> they are going to downgrade the numbers today aggressively. rod for thenother back. stokeay they need to inflation expectations.

they are looking at next year and 2016. ,f they downgrade the forecast you are saying that the jobs are 2% inflation target. >> i am really bad at my job and this is what i'm going to do about it. i'm going to announce qe. >> i am just throwing it out there. pimco was in here and saying it is when. when is the next quarter of next year. sense that the germans are nervous. >> it seems unlikely that they would have provided such strong hints before the meetings. it may not be in the form of an official announcement. it could be a contingent commitment if we are not making significant progress. >> are we talking about corporate bonds or sovereign bonds?

this is a question. >> it is really going to because medical. -- be cosmetic. mentionedcally sovereign bonds and did not say anything about corporate bonds. >> have the markets already priced this in? you were talking about the fact you the bgp was below and on and theing race markets are already pricing this stuff to a certain extent. it may almost be fully priced in. >> you price it in several things. the reasons the yield is so low. you are pricing in the potential and the potential for it to actually work. the discussion is that, if you

think the outcome is higher with inflation, you want to stay clear of anything that gives you a yield of 1% on a government bond. there are bets on qe and it working at soon. >> i would add that the environment of zero growth in .ero inflation >> it is not like the market is shying away from this. the other thing is the oil price coming down. him and work against the fear is that he is going to have embedded inflation. stability. to price that is, again, working against him. >> the price of oil is falling and.

-- and, it does help with growth. there is one needle in the compass. >> the story of the recovery has been a week level of growth. even if you do have some modest growth in a drop of oil, it is not going to do much. >> we think he will not do it today. >> no official announcement. .robably a strong hint >> there is a theme in the ecb about talking about it. you really start to talk about it and the light has been eight months. >> what is the rating? every time they talk, it is not doing anything because of the markets adjusting by themselves. >> i think john is right and there are strong hands. get ready boys and girls.

get ready. think it makes it. >> all right. >> stay with bloomberg for more on the ecb. we'll bring you the news conference. that is going to be something that i am not doing. john, you are doing that all stop >> we have the boe. -- you are doing that. >> we have the boe. vladimir putin, the russian president, makes his annual state of the nation address today. that is a live shot that you are getting from moscow. this could last quite a wild. as it progresses, we will bring you the highlight.

>> ryan chilcote is listening and he speaks russian. he will bring us the highlights very shortly. this comes after work stoppages. bloomberg that this has to be taken seriously. >> i am sure that we made a significant move forward today in addressing our partners in the cockpit with the fact that we believe that there should be a mediator bringing us together on the difficult issue of transfer payments for early tensions. we have indicated that the unsuccessful talks should come to an end with no solution in sight. the reason is why we need a mediator to come to a fast resolution. >> an investigation by sony

.ictures has north korea the hackers have exposed more information, including details. the interview is a comedy about two journalists chilling a north korean leader. >> a bloomberg exclusive. the former anti-am prime minister, mario monti, joins us. >> we are going to tell you why. you can follow us on twitter. -- cine is at >> we have an interesting question and we will speak to the ceo. this is the question we want you to tweet about. polaroid versus instagram.

we will see you shortly.

>> welcome back to the polls. we are live. >> it is interesting news. let's go to ryan and. let's talk about that. we are joined now for the third time.

michael has to be happy. >> he is pleased. ryanair has kept planes on the ground and they are increasing capacity by 13% in november. you might expect this number in a similar range and they saw an increase in passengers. factors and a strong numbers making them feel confident. >> the third time this year. >> the third time this year. they are citing a number of ands that have done well business friendly frequencies is the word they are using. dublin's and brussels. targetingoming up and airlines in places. >> is the strategy to pick off the weaker carrier in the winter season?

are weaker airlines going to suffer? it will increase capacity and boost frequency. they are going up against easyjet. they are definitely seeing opportunities. ryan air season opportunity and they jump on it. they are not afraid of taking that. do we have any idea of christmas bookings? what's they are cautious. you have to wonder if there'll be another one. the fourthill saying quarter will have to wait and see. we will see. >> thank you so much. headaches in the face of

opposition to announce yet another strike yesterday. hans nichols brings us the latest from berlin. you have been talking to the man . what did he have to say? >> he has a long-term strategy of having a long-haul flight with a low-cost option. strike, they have a mediator. action withlatest 37 long-haul flights canceled. that is half. the cost to the german economy is crucial because you are hearing more criticism on what the pilots are doing. they have been talking about the tanzer --and luke fthansa has a -- lu

lost euros. they have done nothing but antagonize the union. a way tolike there is go on this. the resolution by christmas may not happen. >> in terms of the concerns was strikes, it is a reputation problem. did you speak to the ceo about the reputational damages? colleague in frankfurt and i could not get there. takingnot blame it on them to frankford. they have had 10 strikes and a lot of the long time customers have tried different carriers. base that customer they have drawn upon may be eroding because of the strike.

>> thank you so much. >> let me take you back to what is happening. vladimir putin is on his feet. this is the state of the nation address. town, very the focused on russian statehood. describes crimea as the temple mount and it is sacred. support for the ukraine and described it as a coup. he will continue to talk for the next few hours and we will bring you the headlines. once this is the vladimir putin we have come to know in the last couple of months. on one hand, he says he respects sovereignty and that he says that crimea is the russian temple mount. also next is our exclusive

interview with the former anti-and prime minister. we will get his views on the right decisions and the advisory council closed-door meeting this weekend.

>> welcome back to the polls. vladimir putin is giving a state of the union address. >> he talked about the crimea and the relationships with the ukraine. they would have sanctioned rusher with or without the ukraine at some point. it is interesting to see how he segues into the economy. how is he going to tackle that will be a theme running through the speech that he delivers. let's get the highlights and what we need to know. ryan chilcote is covering the

rush of story. >> he has come in and defended russian foreign-policy. he says the reason the world is obsessed with russia is because they do not like vladimir putin and a sovereign state. they said they would have done it even without the ukraine. if you were looking for accommodating comments, he has not done that. ruble is not going in. you see the support for ruble volatility. loader --is heading lower. not in accommodating speech. that is what we should expect. >> he is playing to a domestic audience about the ukraine.

there is a difference between what russia is thinking and how the international community season. do they do verge more? do they come together? >> we see little hope of bridging the divide between the west and russia. merkel played the role and has expressed dissatisfaction with how relations have been going with vladimir putin. she is saying that he is not maintaining his part of the deals. until the relationships get patched up, people are concerned that this could get worse. concerns address the of the russian people while there is still strong support of vladimir putin? how is he going to do that? >> a big concern is the ruble.

i think you can expect the russian president to talk about how what is happening will not affect the russian government's ability to pay salaries and pensions. these people want to make sure that they are going to get their pensions and keep their jobs. that he has balanced the budget. you may also talk about oil prices. he does not think the corrections we have seen or the decline in oil prices will be long-winded. this gives the russians a little but a hope that what they are trying to do is shake out show recover the price of oil faster than people think. too early to talk about a winter of discontent and the

ruble getting weaker? is that when you start thinking he may be out of power? that $70k russia says a barrel is fine for the next year or two. sure the government is predicting a recession next year the exceptionwith of the financial crisis since vladimir putin came to power. having said that, if the price of oil was to recover and we were to get back, there would not be a huge amount of pain. about whatpeople happens in the interim. there is no clear successor and it is very alarming. they are not sure that post is better than before. -- he iss setting setting the bar low. you go back to some long and cold winters and he is stirring

up the russian people and the sense that we will stand firm. >> a place into a larger narrative in russia and russians feel that their role in the world is not recognized. it comes down to world war ii and the russians believing that they were crucial in destroying adolf hitler. that was ignored in the rush -- in the west and all he is trying to do, as far as vladimir putin broadcast andis carry out the russian foreign-policy. he is speaking a little bit to that and it goes down well in russia. the had a deep recession at the end of the soviet area -- era. and glorytrong state in the future plays well. >> we will have more with the

interview next. >> you can follow us on twitter. we are taking a break and we will see you in a couple of minutes.

>> welcome back to the pulse in london. i am francine lacqua. >> let's get back to our top story. to decide onng interest rates. thisclosed-door meeting weekend. policymakers and the representative on the international advisory council joins us now for a bloomberg

exclusive interview. thank you for speaking to the pulse. this is a meeting to try to find in the big wide world. what are the issues. yes, in the international advisory council, we will visionsthe respective of how the world is evolving and europe is evolving. we will have a discussion on whether europe is continuing towards integration or if it starts to disintegrate. even closer to the international of thet is an assessment top-level business leaders from the global community and academics that we will have

around the table. sauce they the implications the great trends in the world have for the university. i must say that the advisory council has been working for use years and it gave important strategic advice, for example, on how to strengthen the position in international rankings and, i want to note that the position has improved. the ranking is with social sciences.

and it went from 17th to eighth. this council has to shape ourselves for globalization and lee mumbai backs international school of business. something thatis .taly and the world needs more educated, informed, and globalized. the better it gets, the better it is. face are ages they immense.-- are amend do you think there will be opportunities going forward?

do you think mario draghi will have any success? do you think people graduating will find opportunity? >> yes. ofhink what he is doing is crucial importance and i must there are a set of decisions the european union is going to take concerning how to make public finance and fiscal ascipline consistent with match for all public investments. andreal economy in europe the monetary economy of europe are proceeding in an evolutionary manner and along an aggressive pass the president has initiated. when it comes to purchasing

government securities alongside the ecb, it would do well to principles that were agreed to two years ago in the european council. namely government securities issued by countries that comply andy with the requirements recommendations that are, by definition, more excepted by the ecb. is there a danger the ecb is doing too much of the heavy lifting? that means there is not enough pressure on politicians around europe to push further for the refunds. >> that is why -- that is exactly why i am saying that the

ecb buys government securities, and my view, it should be objective in the distribution of the purchases. moreit tends to buy government securities of those complyingwhich are with all of the policy recommendations. purchases are in a bill of reluctant countries. they are hoping for structural reforms and fiscal discipline's to have a path towards growth. changing from monetary to could, you say that you

see an enhanced role for public investments. renzi has said that he believes that the investment plan is not sufficient. you would you agree with the prime minister view? nobody,ieve that neither president yunker, or renzi, can really pronounce the major evolution in europe. the implementation terms would have to be carefully studied. timenk it is the first ist the culture investment put at the center of the strategy and it has to be private and public investments.

see onesay that i important opening in the plan that consists in the fact that the contributions provided to the european union to finance the plan will not be taken into theaccount in monitoring compliance of the member states. from this important point, i -- actually,e case i will make the case in the council of the future and friends of europe in december the the recognition of the public-sector investment will have to be finding a proper place in the implementation of

the stability of growth. we do not want, i believe, to discriminate good national --lic investment relatively relative to financial contribution at the euro level. >> what is your take on russia? we are hearing from vladimir putin addressing the nation and he is talking about sanctions, calling for an amnesty on capital returning to russia. how concerned are you about the situation with the people on an international level? that this think challenge and threat is a factor to which the european union should react as it did to past make more and

progress in energy policy which relies on having a much more interconnected single market for brings us back to the topic of public investment. , i welcome your question on russia. discuss this because i'm interested in having the views on russia and people of turnoverthe ceo -- renova. they have the reactions of people as diverse as the ceo of coca-cola and the chairman.

tyson, the director for business and social policy at berkeley. allowu see, precisely to each of us to have a better vision, including myself, of course. the discussions are what we need today. >> yes. they certainly seemed to be exciting. good luck. the international advisory council meets this weekend. thank you for your time. that have been discussing vladimir putin will be addressing parliament. listeningeager faces to what the president has to say. he has been talking about the ukraine. he is moving on to the economy.

he is talking about the idea of amnesty for capital to return home to russia. he says that he will not ask any questions about where the money comes from. clearly, the fact that we have outflows from russia affects the ruble and creates some sort of a concern for the russian president right now. the sony hack job is not done. exposing executive styles.

>> welcome back. you are watching the polls. let's talk technology. the plot is thickening when it comes to the hackers who exposed embarrassing information on executive pay. interview" is a film on north korea. what are the latest revelations? >> most of them are films that you can look at and they are damaging views about how segregated the strategy is.

it is all about "the interview or c." north korea is not laughing. found films on file sharing websites. the cinemast hit yet. on the bottom line, that will hurt and there is a fantastic report over at fusion cable. the security numbers are out there. he is paying $3 million and the credit card number -- credit card numbers leaked. the 17 top earners get more than a million dollars in their units. not white. only two. only one is female.

you did in even deeper and the copresidents of production at sony entertainment, one is a female and is paid it hundred thousand dollars less than her other copresident, who is a male , according to these reports. explosive stuff, when it comes to it over all. managed to get a whole -- a hold of pay data. a huge discrepancy between men and women. >> it is amazing. this is what is interesting. there is the investigation going you see what they did? it is a group associated with north korea. they say the korean language coding has similarities to the

attacks. south korean banks and broadcasters were brought down and wiped the computers. what is more worrying is what is to come. went on the state and international agencies and said they will take measures if the film is released. >> is sony reacting to the threats? >> they are not changing their views and are planning on releasing the film. the area of admiration you have to have is that they are not wavering. media critics and screenings start next week. they are on the publicity trail. >> bad publicity is good publicity. >> caroline hyde is there with the latest on sony.

filmscould see similar targeting common the. >> there was one year where vladimir putin was on the front goodand it was not all things and they disappeared. >> they never arrived. >> let's look at the details we have been announcing in the last few minutes. he is calling for harsh measures for -- he is not specifying what the harsh measures are. they are going to be harsh. started out byin talking about his political againstnd the sanctions russia. now, he is talking about the economy and the ruble. >> he is talking in depth about the economy and it is interesting. what does he mean by that? amnesty and for an

said that if the money comes back, it should not be subject to penalties. he is calling for fixing taxes. becauselling for things he has good control over the political system. these are things we will see happen. he is calling for a moratorium and controls on checks of businesses. he wants to give business more bureaucrats,state the source of much of the corruption. we are getting the economic liberalization plan that we learned about. i would not say that we have any real dynamite to indicate that we will see a real dramatic change. he understands the way out of this is to change the direction of the economy. >> we will have a couple more hours to go through that. >> quite possibly. >> we are keeping a close eye on this and will give you any

breaking news. >> you have to be watching this very carefully. >> we're taking a break. up, we are -- coming taking a look at smart fire. we haven't invented smart fire. stay tuned. aboutl talk revolutionizing the fireplace when we come back.

>> welcome back to the polls on bloomberg. we are also streaming on your tablet and phone. >> we are quite literally on fire and we are talking about smart fire. ethanol.led with bio it is an added luxury added to the design. good morning. we invented fire. this is a step forward. tell us why. moving away from solid fuels and the need for a flu or a chimney. put this anywhere. indoors or outdoors. or a new building building. >> this is good for the environment. >> the fuel is made from vegetation. there is very little carbon residue.

>> it is not very expensive. liter.round one pound a it is delivered to your door. >> how big is the market going ?o be >> the market is potentially every home in the country. solid fuels are not able to be used in major cities. the fire has left carbon footprints on every building. >> you are saying that these are beautiful hotels. is?number one concern >> that they look good and people have a real fire with a real atmosphere. >> you do right now. >> it is very cozy. a historical housing stock. this is aimed at new builds.

fire can adopt into the lots of new builds in our boxes chimney and add a it cuts down the cost and the green footprint. i am mentioned that you are not thinking about expansion. the u.k. has single-family houses and townhouses. europe, the products are strong. we are very strong in australia and america. sell more because of townhouses. >> we are selling more because of townhouses. >> you look at what the chancellor is doing at the moment. is there anything that seems to help you? >> the more the market moves, the more it will help us along the way.

we are very pleased. >> we talk more about that. -- coming up >> we have to take a break. ♪ .

>> a fresh start it is a e.c.b. meets in its new building for the first time. we have spoken to the former italian prime minister, mario monti. is resident putin addressing parliament as we speak. we'll bring you pictures and nall sis. for the uprises hird time this year. >> good morning to those in

europe. good evening to those in asia and good morning to those in the united states. >> this is "the pulse" live from bloomberg's european headquarters in london. >> to our top story. the e.c.b. the governing council meets today for the last time this year. will the new venue generate new ideas? or maybe just allow them to enact new ideas. let's find out. let's kick it around. we're joined by david powell and jonathan ferro. everybody is saying we're not getting much today. we'll get the big announcement at the beginning of next year. today, though, as draghi likes to do this, he is going start hinting and the hints usually turn into reality. what hints did we get? >> we already got a hint at the hint 10 days ago where he said there is a need for action.

i would expect he would reit ra that you are gent sense of urgency. >> will he talk about the euro? >> he doesn't want to get in the way of it moving lower. e doesn't want to do that. i imagine, look, they want inflation and a cheaper way to do it. shove the surgeon sy a little bit lower. >> -- currency a little bit lower. >> the bundes bank is not onboard with q.e. . the banks in germany are not getting better now. the inflation story is not one to write home about it. the germans don't like inflation. they definitely don't like hyper inflation. are they prepared for deflation?

>> the labor market is very, very strong. unemployment at record lows. the approval rating of angela merkel is still very, very high. to the hen you listen board members, it is not that they are against quantitative easing. why take the risk if you're really not sure that it is going to work? that's still up to debate, whether this would actually work. with yields so low anyway, what kind of impact would it have? >> i think the experience of the u.k. and the u.s. provide some evidence that it does work. it doesn't solve all of the problems of the economy and won't be the solution to all the problems but it will likely provide some help to the economy and they need all the help they can get. >> what is he going to give us? the balance o be

sheet needs to get to here? by a process of deduction, you can figure out the only way to get to here is to buy -- how does the communication strategy work? >> my guess is he will reiterate the records from the vice president and say the lines of we will -- we evaluate in the first quarter whether we're making any significant progress toward that 1 trillion euro goal. if we haven't, it will be time to start purchasing other assets, probably government bonds. >> how much are they looking at -- euros? >> i think it is very important, francine. the previous eltros are expiring. people are paying that money back. it is equaled out by the new funding program. a lot of people think it will be as ugly as a pickup in the september pickup.

the pressure is on. >> we may be in a slightly different situation. >> it would be even more disappointing. >> you're living in la-la land if you think this is going to be a significant game changer. ltro's ree-year weren't that different from this program. we have several years of examples showing these liquidity programs led to no credit in the euro area. they are still hoping there will be demand for the next operation. > formalizing the e.c.b. statement, the commitment, this idea they will get the balance sheet up a trillion euros. the second one was to come out and say we're going to -- inflation expectations fast. to do that, you have to bring

something to the table whether it is now or next year. something has to come. >> to what level will they come down? just align themselves are i.m.s.? >> i think even more sporpt what they do with their inflation forecast. they are certainly way too optimistic and they even show already the e.c.b. undershooting its target on the horizon. how can they do nothing? >> every first thursday of the month we sit here questioning mario draghi. wouldn't life be great if merkel and hollande and the rest of the crew sat there every month and we could berate them as well. the e.c.b. is the only game in town and close to the end of the road. they are changing their

timing. that is one additional reason to put something out there today. the e.c.b. won't have an occasion to speak to the market in this press conference for another couple of weeks. >> the fact that he is not going to be able to every month have his -- of draghi. >> i'm not concerned . they are going to have to produce some content, that first thursday of the month. there is going to be that lag now. >> i'm sure they will think of something. bloomberg economist david powell and our very own jonathan ferro. >> jonathan ferro will be at the helm as we bring you to news conference live at 1:30 this afternoon. he's excited. you should be as well. what else is on our radar this morning? >> russian president vladimir piten is making his annual state of the nation address to lawmakers. he called for harsh measures to fight speculators against the

ruble. 37% e airline has scrapped of flights. this comes after work stoppages on monday and tuesday. the c.e.o. spoke to bloomberg. >> i'm sure that we made a significant move forward today by addressing our partners in the cockpit with the fact that we believe that there should be a mediator bringing us together on the difficult issue of transfer payments for early pension. at the same time, we have communicated through the union that we believe our unsuccessful talks about the project should be -- there is no solution insight. the reason for the striking action i think is something that hopefully a mediator could come to a fast solution. >> now an interim investigation by sony pictures has identified

north korea as being behind a hacking attack. that is according to a person familiar with discussions. the hackers have exposed more information from the breach including details on executive pay to the studio. >> still ahead, draghi's decision will discuss the european central bank's next move. see you in a moment. ♪

>> good morning, everybody. welcome back. you're watching "the pulse" live from bloomberg's european headquarters in london. we're waiting for draghi. that is certainly the big theme of the day. in the meantime, we're listening to putin. he has been making a number of announcements this morning. he has moved off crimea and on to the economy within the last half-hour and has talked about the fact that there will be harsh punishment for speculators in the ruble. speak that are speculating on the ruble this morning are seeing it hop around a little bit. the russian currency under a little bit of pressure. that pressure started as soon as he started talking. you can draw a line between one and the other.

he continues to talk about the the economy and talks about what's happening going forward from here. he is trying to find some sort of amnesty to bring money back into russia. illegal money that is held outside the currency -- there is dollar/ruble at the moment. we are now up in terms of a percentage point dollar versus the ruble. harsh steps for speculators. i don't know what those steps are. we weat with anticipation to find out. >> now for the e.c.b.'s rate decision later on tonight let's bring in a chief euro economist. great to have you on the program. what will mario draghi deliver today if anything? >> there are two contingencies that will prompt the e.c.b. to change its policy stance.

one is they concluded that existing measures were not enough. that is a work in progress and he other is they pt expect the medium term outlook to change significantly. they will conclude that the inflationout look has changed significantly for the worst. it looks like core inflation will be well below what they have been expecting for a persistent period of time so the real issue is to a majority of the members over the council what we have already had from the president and vice president that they need to sheet more alance quickly. i think on the basis of the projections themselves, the e.c.b. should be announcing a broad-based asset purchase program today including sovereign q.e. . >> do we even start to understand the details of how

that purchase is going to work? you look at the structure of the euro-zone. how does it actually work? do they buy greek debt? how much detail are we going to get associated with it? >> we have had a few precedents to the e.c.b. announcing something in principle and coloring the picture in a bit more detail later on. you can see the same thing perhaps happening today. an announcement to broaden out the asset purchases. we have already, though, had some hints in commentary over the last couple of weeks. the vice president of the e.c.b. told us sovereign bonds would be done on the basis of the capital key. we're already starting to get some color on that. the debate within the institution has moved on over the last few months. the e.c.b. has accelerated towards this discussion because of increased anxiety of

inflation expectations. i think they are well behind the curve on inflation. we know that. it looks like there has been a shift of move within the central banks. maybe we can get a hint that the e.c.b. is very close to doing this. but to get the full details, maybe it is a little bit too soon. >> in terms of what they will buy, it looks pretty much like a certainty i guess the sovereign bond. how is that going to work out? >> i think the main message that the e.c.b. has to say they will do whatever it takes to get inflation up. much more of a sense of urgency. draghi himself said we need to get inflation higher as soon as possible. he said without delay they need to raise inflation expectations. they node to do something about -- need to do something about this more quickly. expand the balance sheet over time.

it is going to take a year or two to make any material difference. part of the reason why they were thinking about buying sovereign bonds is because the deeps, most liquid market so he can buy more assets for quickly. you have to convince people to use the am mission you available and you'll do enough and you'll do it quickly enough and that's what i expect to hear maybe not in full today but certainly over the next few months. >> ken, if you were a betting man, do e.c.b. yields go down or up on h? -- on h? what to you think? >> in the periphery, given that you still have quite a chunky spread relative to core area yields, i would think it would be yields going down. at the core of the euro area, it is a bit more complicated if the e.c.b. for one surprises the market with a more credible announcement, you could have a

backup in bond yields. my guess is it probably wouldn't last very long. the e.c.b. is probably not going to enough to change the growth and inflation dynamics. after the announcement, that will probably fade. if you believe trend growth is low, we're looking at very low yields in the euro area. >> always a pleasure. nice to get your take. the thank you very much indeed. >> coming up, the sony hack job. hackers behind the recent cyberattack on sony pictures. now they are exposing executive salaries. we have the details next. ♪

there are plot thickens. hackers will study pictures of embarrassing and damaging information on executive pay of a studio that is set to release "the interview." caroline, what is the latest that has been revealed? >> quite monumental revelations about the discrepancies in pay that seems to be going on at the sony entertainment unit. between gender and race as well. we all foe why this is happening. "the interview" is due for release december 25.

it is the story of a plot to kill kim jong ump mp n. a hacking unit related to north korea went into sony and hacked into their computer releasing five sony films for free. one hasn't been released yet, "annie." we understood there are 17 top earners at sony. f all the 17, only two of them are not white and only one of them is not male. when you look at two co-presidents who are -- of production, hanna gets $800,000 less per year than her quivalent who is a male. also slightly embarrassing is pay packets for seth rogen,

more than $8 million and more than $4 million they spent on the film. >> now market volatility is forcing some companies to put their i.p.o. plans on ice. for others, it is business as usual. stock has tripled since it debuted on the nasdaq. elliott spoke to the c.e.o. to start within the first day. at a time when many companies are putting their i.p.o.s on hold or canceling them altogether? why have you be so successful in this market? >> we went public in september and are very pleased with the outcome. it is 15 years. our timing was not on a specific month or a day. we felt ready. we built a large customer base and saw demand from the market. >> there are other

cybersecurity companies. at differs cyberart from checkpoint which is well established on the u.s. market and others like palo alto that are doing pretty well now? >> we feel we are the best of both worlds. customers in over 65 countries. in terms of what we do, we're focusing on the inside. some of the companies you mentioned are focused on perimeter security. how do we keep the bad guys outside. we protect them on the inside very hard for them to move around and get to the critical assets that they are going after. >> privileged accounts security? >> there seems to be a lot of demand now. you raised your guidance almost three-fold. what is underpinning the growth now? for us owth drivers

have been constant. companies' growing awareness on the fact that breaches are getting more and more sophisticated and are making it on the inside. it is a whole new approach to security. we have a proven security to make that happen. tection of attacks that make it to the inside. >> this week we're talking a lot about sony and there are reports that iran has been hacking into airlines. does every data breach mean more phone calls and inquireys and business for you? >> we have a very stable business. the market is a well established market. cyberarc is a well known brand. we don't need to respond to specific attacks. there is growing awareness. it starts with malicious attacks coming from the outside

and also edward snowden. sbr prize prize -- enterprises are spending more on cybersecurity. >> at a time when your market is struggling to grow, do corporations think we can't afford to pay for cybersecurity or is that the last thing that goes? >> we feel that the organizations are definitely spending on security. in europe, it is a very important and -- i think they are robbing peter to pay paul. peter is probably the general i.t. expense. security is growing. there is a shift from perimeter security to protecting against advanced threats. >> >> that is the c.e.o. i was talking to earlier. talking over the last 15 minutes about hacking, north koreans, spying.

when we find out. >> everything that goes with it. bond at the top of the hour. what more can you ask for? ♪

>> welcome back to "the pulse" live from bloomberg's european headquarters here in london, i'm francine lacqua. >> the european central bank holds its last bench mark interest rate meeting of the year today. watching mario draghi for any indications of further stimulus measures for the euro-zone. to stay at 0.5%.

don't expect any fireworks there. qatar has put a member of its royal family in charge of its wealth fund that controls over 100 billion of assets. he takes charge of the running of the fund. >> there have been more protests in the united states overnight after another white police officer avoided indictment over the death of another black suspect. eric garner died after being held in a choke hold by the new york city cop. the justice department be conduct an investigation into the case. >> this is what's happening in the equity markets at least here in london the ftse 100 pretty much dead flat. unchanged. gains in mainland europe, though. a quarter of 1% of the ftse. half of 1% on the dax in frankfurt. it is frankfurt that gets all of the attention in a couple of hours.

it is a will they, don't they question? talking about q.e. . buying government bonds. will it create inflation? >> if it would create inflation, would you want to be holding any of these government bonds? with the yields they are at now? that's what has been happening now. started life this year at 2%. it has been a stunning move. the move in the euro? we dropped below 123 for the first time since 2012. it is the race to 120. if you want to see central bank action, it is right here. the race to 120, looks like dollar/yen is going to get there first. that is right there, the

b.o.j., ability to drive home some serious stimulus. has draghi got what it takes to do the same? will it work or not? i'm sure that is not question anymore. everyone expects. >> thank you so much. jonathan ferro there with the latest . in about 25 minutes it is "surveillance" with tom keene. >> mr. ferro will join us at 7:45 for an important announcement and then on to the draghi press conference, but in the backdrop, it is all about russia. ladimir putin with that battle against speculators on russia. we'll touch on that. peter henry will join us. dean of the new york university's school. he has some terrific respect on emerging markets including russia and we will speak with

him about the rest and the protests overnight in new york city. as you mentioned, francine, it was quite something. i could see the helicopters outside my window. we'll touch on that with him. wren of k with scott wells fargo. wren is a strategist. bill nichols really involved in the intimacy of the trading in the market. looking forward to a spirited discussion. >> tune in, in 25 minutes from now, ks "surveillance" with tom keene. we saw vladimir putin give his state of the nation address. >> ryan chilcote joins us now. busy morning for mr. chilcote.

>> shall we talk about the russian president first? >> first off, you know, a lot of attention is being paid to his comment about how the central bank should use harsh measures to crack down on speculators. after he finished, we heard from the russian finance minister. he said that doesn't mean apital controls. tim ash raised the issue. we have seen a lot of russians on the streets. russian households taking their for and turning them in dollars because of the decline. there is big concern that there is going to be capital controls. the finance minister said nothing of the sort. the other economic stuff is focused on liberalizeation. the economy minister said that will help them overcome the recession they are expecting next year. get back to growth. we shall see.

i guess the question is would you rather face trouble in russia by illegally spiriting your money out or would you rather have it in not a great economic climate with a lot of uncertainty in russia. that is a question a lot o people will be struggling with. the russians say they are going to choose russia. we spoke about a lot of these issues, including the ruble, oil, the sanctions. he is a very interesting guy. an entrepreneur. he started a number of businesses. sold a number of those businesses. he is often compared to richard branson. t.c.s. bank is sort of the capital one of russia. he is not an oligark. he is not a big fan of the russian president's financial i asked him what it is that the west doesn't understand about

vladimir putin and the country's policy in ukraine and near russia's borders. the west -- russia too much for no reason. yause wants to go to baltic countries or poland. this is so -- i mean, it is ip possible. you talk to -- impossible. you talk to anybody in russia. they don't think about that. >> that is a very arguable point. >> there is a need that they would go. >> to restore the soviet union. >> they need to support -- they need the money. we are the biggest country in the world. we have so much land. >> you mentioned ukraine. the west is concerned about russia going into ukraine. it has already happened with crimea and all of that stuff.

what is it that the west doesn't understand about russia and the ukraine? > moscow and russia. we don't need to make ukraine part of russ cra. nobody wants that. they want them to be neutral. they speak our language. they are our brothers. we want them to be neutral. we see them as a buffer between western world and russian world. like finland. we want them to be like finland. very neutral. that's way the russian elites see them. it is like neutral. it is a buffer. you put the missiles there. we are surrounded already. this is ukraine. please. ians want to be

in that part of the world. maybe they want to be american. are they want to have the same roads. they want to have the same life nd maybe -- they see the picture of europe and they want to have the same picture in ukraine but it is not going to happen. wife is from estonia. it is 20 years now. they are more poor than they used to be. the people are very poor. the mother of my wife, she is getting pension of 200 euro per month. that is a pension. the finland pension would get ,000 euro. why the difference in the pension wages? it is a dream.

they think once that become part of europe, they will reach better -- >> i think it is fair to say there are a whole lot of people who don't agree with his views. pretty interesting and provocative guy. given what is the kremlin's view of their policy in the ukraine and the former soviet union that is now independent. you can watch the full interview. it will be on bloomberg television over the holidays. he might great -- have been -- he might have done a bit of swearing. >> ryan chilcote. there you go. at ryan chilcote tv. there you go. oming up, an instant replay.

the c.e.o. joins us to explain what is driving the revival. ♪

>> welcome back to "the pulse" live from london on bloomberg tv. polaroid cameras, every family had one. when digital cameras hit the stores, polaroid cameras hit the store cupboard.

now impossible has seen their sales soar and manufactured heir 1 millionth film. >> smile, everybody. >> they were the cameras used by everyone. muppet or human. instant analog photography allowed the pictures to develop in your hands. but the rise of digital was the fall of polaroid. >> to design and build this equipment from scratch. it is difficult. >> this factory in the netherlands was the last polaroid factory on the planet making film. it was due to be sold off when polaroid began liquidating its assets in 2008. enter the impossible project. when polaroid stopped making film, impossible started. prevented 200 million

polaroid cameras from being rendered totally useless. >> from start to finish, there are about 50 chemical reactions that take place. analog instant film is the world's most chemically complicated man made product. 75% uptick in the 18-25-year-old customers just during this year. which has fueled a 30% growth in the company year on year. hacker can't very well steal a polaroid from your cloud computing account. it is more than nostalgia and security that is bringing customers back. >> these are customers . these are young people who have

been born and raised completely within the digital imaging world. when they take that picture, they not only are capturing the picture with a camera, but they are watching its develop. they are seeing the magic of all of the chemistry that is going on. >> making the m possible possible. -- impossible possible. >> ok. joining us now is the polaroid c.e.o. great to see him on the program. that is the old facility, isn't it? that is the old polaroid. >> that's right. >> let's talk about the new polaroid. how have you recreated a company that was so famous for one product. that was me taking a picture of you. it coming out of the front end and shaking it. how are you different than what i know polaroid to be? >> what we looked at is what does our d.n.a. stand for as a brand?

for instant and sharing and iconic branding elements like the color spectrum and the classic border. it is taking all of those ingredients and applying them going forward. we have a very unique business model now where we partner with others and bring products to market quickly. for example, the polaroid q which is an action sports camera. we looked at the category and said it is not just about these kind of male testosterone teenage adrenaline junkies. it is about how do we appeal to a broader audience? a lifestyle a you had yens which is -- audience which is emale and younger and older. they are 79 pounds here prment >> you can stick them on to things. > the go pro kind of customer.

why not reintroduce the polaroid? we were talking about it. taylor swift. i.n.s. gram. again. it is a little bit of the polaroid but on digital. why tot bring it back? it is more secure. >> we have. we have two different types of technologies that we make available today. the first is the analog classic film. sell a camera that prints a wallet sized photograph. it is popular among young teenaged girls especially. they will take pictures and shake it like a polaroid picture and get their smart phone out and snap it and post that to their social network. analog to digital. this is the 2300. an instant digital camera that takes a digital photograph and then you can print an instant photograph from it. it is a digital printer plus the digital camera all in one.

>> mentioned taylor swift. the new album "1989" came with polaroids. >> it did. it is incredible. it is something that is totally genuine that her camp came to us and said she wants to make her new album all about pole roit 1989 and shepts to have a deluxe edition where she includes 10 additional polaroid photographs of her inside the album. we have a giant marketing campaign now on her website where fans have post their photographs and upload them and share them with other taylor swift fans. >> do you feel like you're playing catch up because of i.n.s. gram and the digital rev thrution polaroid missed or do you feel there is really an opportunity for polaroid to do something different? >> we're already going through this tremendous resurgence oz a brand. the company is extreme -- as a

brand. the company is extremely healthy owned by very strong private equity investors. we have gone through this kind of analog to digital transition and now we are thriving and growing around the world. at this point, over 60% of our sales are down internationally outside the united states. we have managed to diversify ourselves geographically as well. >> it also has a big security element, your product. we have learned -- the sony company being hacked. we talked about celebrities being hacked as well. they don't want their pictures being hacked and delivered to the world. unless someone is going to burgle your house, the chance s of someone getting a hold of a polaroid is quite low. >> i would say so. there have been articles from celebrities saying if you want to be safe, just use polaroid

picture. >> do you think there will be a surge ens because of cyber hacking? >> the celebs are doing it. >> you have this retro hipster cool factor. that is a huge part of it. taylor swift, someone asked her why is it -- why did you want to do h based on polaroid? she said there is something about having a tangible photograph of the pictures that you care about that you can retain. there are billions of photographs being taken every day because of smart phone technology and people's obsession with taking photographs of everything they do. there are photographs that you treasure and want to turn into something. we have where you can turn them into workors art. it is about a product, not about a print. getting something to frame and hang on your wall and put on your she feel or desk instead

of having another print. >> are you thinking about reediting, reissuing the old polaroid? >> the original camera? >> i think there is opportunity. right now there is callice 50,000, 60,000, 70,000 units a year being sold. we sell them on our website. >> how much is one of those? >> $200 to $300 u.s. there is that kind of refurbish market. i think there is opportunities to do more heritage designs on future products using zinc technology or some of the old analogs to bring back the old retro feel. a big thing for you? > it is always huge. >> do an antler -- >> that would be something for the reindeer in your life.

it was great fun having you on the program. >> coming up, government bonds and james bond. ing the e.c.b. decision that is coming up and also talking about 007. the new movie is announced at the top of the hour. mario draghi could announce something as exciting as well. we're back in a moment. ♪

>> welcome back to "the pulse" live on bloomberg tv and streaming on the ipad and bloomberg.com. >> what are we watching for the rest of the day? let me tell you. bond. bond and bonds. >> two bonds. it is a tale of two bonds. about bond, ng james bond and government bonds. >> first of all, of course it is the big thing of the day. let's start with the more fun one. >> this is the big thing of the day. if you think draghi is the big thing of the day, you're kidding yourself. it is the new bond film. it is going to be announced in four minutes. the amazing thing is they are going to announce the subject today, any minute and they are going to start filming in four days. whoever has been in charge of security -- >> has done a pretty good job. they have basically been sending scripts with a blank space. one to have cast is

the baddy in sherlock holse. we will get q.e. at the start of next

speaker boehner needs nancy pelosi, as conservative republicans adapt to lame-dumb politics. draghi faces disquiet from germany.

he holds a press conference at 8:30 this morning. and 72 crayolas, pantone releases of the color of the year. it's a dark red, orangey kind of -- scarlett is going to blow up her whole wardrobe over marsala. unbelievable. it is thursday, december 4. i'm tom keene. joining me, scarlet fu, brendan wearing 2006's color this year. good to see that. >> it's a classic. >> started out quiet about 3:00 a.m. let's get to our top headline, new information. >> this just happening in the last few hours. russia's president vladimir pickup taken taking aim at the u.s. and european union in his annual state of the nation address. putin says the pair would have imposed economic sanctions on russia anyway no matter what happened in ukraine. he says their goal is to hurt the russian economy. he called on russians to end their dependence on imports and added business needs more freedom from bureaucracy. another cov