>> fed up, frustrated, and fighting back. with french unemployment back at record levels, business leaders gather in paris to deliver a positive message. you to that gathering. a clash of cultures. rio tinto tells bloomberg that a deal with glencore would be a bad fit. and, online over the bottom line. a bloomberg interview with facebook ceo mark zuckerberg on why getting people connected is more important than profit.

good morning. you are watching "the pulse." we are here in london. i'm guy johnson. francine is not here today. fed up, frustrated, and fighting back. that is the line we are going with this morning. french unemployment is at a record high but the big as companies have launched a pr bonanza to hopefully restore the nation's reputation as a good place to do business. french]lled [speaking which we think roughly translates as "bank on france." caroline connan has the details. who is there, what are they talking about? as,ou can translate that let's bank on france. it is all about boosting the image of france when the french economy has barely grown and is expected to grow by 0.4% this

year. some comments a few months ago from the ceo, saying that france was finished. the idea here is to fight against these kind of comments, against what they call french bashing. the economy minister had a conference yesterday. we got a very bad unemployment number for the third quarter that came out at 10.4%. i asked emmanuel make an what could be done about these jobless numbers in france. have a listen. >> i never react to numbers. i have no reaction. i just have a strong willingness to fight, fight, fight to recover and create new jobs. >> the economy minister was supposed to present his new

, inrm, the new activity law the next few days in france. that new activity law should -- which is not the case in many places in france. included also deregulation of some services, such as pharmacies and legal professions. the question is, will that be enough to boost the french economy? >> so we get deregulation. that probably will help. the other question is, innovation. deregulation and innovation. he is talking deregulation. the ceo's, what innovation are they talking about? >> as a symbol, this conference is being held in the grand palace, which is a beautiful iron and glass building where

was held the universal exhibition in 1900. it is a very symbolic place. you have 200 startups here. they are showcasing their latest innovations. you have the airbus electric plane, you have new intelligence robots, you have 3-d printers able to print bones. to takes of innovation the french economy in a good direction. i talked to the orange ceo yesterday about entrepreneurs. he told me he was setting up a venture capital fund in order to help these young entrepreneurs. have a listen. >> there are plenty of areas where young entrepreneurs from france can be very successful. they need of course to be a company. they need to be financed. we need more venture capital. we need probably more involvement of the big

companies, including orange, in andr to help them to grow access the market. >> all these initiatives are very good for the image of france. the question is, will there be enough to boost the french economy? the european commission has given france and extra three months to fix its budget. the deficit is still expected to be above 4% next year. back to you. >> caroline connan in paris, thank you very much indeed. we have more later on. we will be speaking to karine berger, one of the socialist mp's. we will talk to her later on. caroline connan will be talking to the ceo of havas as well. two great conversations coming up on "the pulse." let's go from france to france and germany.

apparently the most cozy alliance that we talk about so often, very much in the history books. angela merkel has reportedly dropped nicolas sarkozy from addressing the annual convention. hans nichols standing by. this is a breakdown in relations? >> that may be a little too far. maybe this is just a matter of protocol. back in november, wolfgang scheidler looked for the finance minister to welcome sarkozy to the christian democratic union party summit. now, what we have heard over the last couple days is that it was made explicitly clear to sarkozy's party that they could send a representative, but they couldn't send sarkozy himself with the expectation that he would be at the podium.

in light of all that, the latest sarkozy'som office is that he does not plan to attend. they are saying he is meeting with senators back in france. , who spoke with sarkozy, called him to congratulate him after he became the head of his party again. in 20 12, she supported him over francois hollande. whether this is a chilly relationship or a matter of protocol, difficult to see. it doesn't look like merkel and sarkozy are firing in the same way they were two years ago. >> there is by no means guarantee that mr. sarkozy will be his party's candidate to challenge hollande in 2017. is that part of this story? is there of you in berlin that he is not the right man for the job? >> there is a view that juppe,

the foreign minister for sarkozy in the previous government, may be the better candidate. this is merkel perhaps not wanting to get involved in intra-conservative party politics. they still have to have a big reckoning on who the candidate is going to be, who the presidential candidate will be. it is no sure thing if that person will get through the second round. there are a lot of open questions. i'm on the side that this is a protocol matter. at the same time, it does mark somewhat of a thawing. i don't want to say a chilling but it does mark a cooling of the relationship. >> probably getting involved in internal party politics in another country is not the director and that merkel wants to go in. always a pleasure, thank you very much indeed. what else is on our radar?

the facebook founder and ceo mark zuckerberg has been speaking to bloomberg. he explained the motivation behind his internet project which aims to get the entire world online. >> if we were focused on profit, the most reasonable thing for us to do would be to really focus on the first billion people using our product. the world isn't set up equally. the first billion people using facebook have way more money than the rest of the world combined. >> we will have more from that exclusive with mark zuckerberg. we will play it out later on. another bloomberg exclusive now, rio tinto's ceo has been speaking about why his company turned down a merger approach from glencore. >> we are totally different

organizations. we are an organization focused on the long term. expiration, in terms of long-term relationships with customers, in terms of our green project development. is very short-term. trade and do a deal. that is a very different philosophy to us. >> balfour beatty has turned down a one billion pound offer from john lang for its portfolio government backed project. balfour said in a statement that the proposal fell short of its valuation of that portfolio. balfour rejected a takeover bid from carillion back in august. coming up, frustrated and fighting back. evento france's biggest driven by companies.

a pr bonanza designed to restore a nation's wounded pride. is france a safe bet for investors? we are going to find out. we are going to speak to karine berger. she is joining us next. ♪

>> welcome back. you are watching "the pulse." we are streaming on

bloomberg.com, on your tablet, on your phone. what is it going to take to put france back on the front foot? we have the nation's largest companies taking a stand at a forum aimed at showcasing the strength of french business underway in paris right now. joining us now from france is the socialist mp, karine berger. good morning to you. are the french people, is the rest of the world, being too pessimistic about the french economy right now? >> i think that unfortunately french people are a little too pessimistic for their own economy. ownelieve that for our life, everything is going to be ok. we are too pessimistic. france certainly has a lot of things to reform but france has a huge economy. a bigountry, a country that is

able to compete, and i believe that this kind of forum can demonstrate the strength of the french economy right now. >> what needs to happen? the economy minister was saying -- can you still hear me? was saying that the french need to stop lying to themselves. what truth needs to be told? what reality needs to be projected? >> the reality is very simple. we are the fifth economy in the world. butre low growth right now, growth is low everywhere in the eurozone. solutions find against the risk of deflation in the eurozone and find solutions in order to promote innovation and investment in france, to

promote the ability of our country to invest in research. these two realities can be very byily taken into account members of parliament and i think it is going to be the in january. >> you talk about investment. does europe need a massive investment program? that is what we are apparently getting from brussels. do you think the investment that is being proposed by jean-claude juncker is enough? there were a group of businessmen at the for him saying, no, not enough and not well targeted. what does france need in terms of investment? what help does it need from brussels? it is not france that is needing something, it is europe.

what we want to do in europe, of course europe is dramatically needing investment plan. what mr. juncker proposed two weeks ago is enough. we need much more to fight against the risk of deflation that we are seeing right now. it is not a question of france. france is able to take its responsibility to reduce its deficit and make reforms. what we need in europe is a big investment plan in order for , for customers to be tofident in the future, and stop the mechanism of deflation that we can see. and itvestment is needed is not enough.

>> one of the reasons people may not invest in france is they fear for what the leadership will do next. do you think people are not insting in france because your party doesn't have strong enough leadership, doesn't have good enough ideas to put france back on? they are worried about the politics, less worried about the economy. >> investment is needed. we are still one of the countries at the highest level for investment. investment has not stopped. the problem is very easy. isre is only one thing that lacking in europe and france. it is growth. back,n as growth is investment will be done everywhere in europe. right now, we need all focus on growth. growth both by reforms

and by making policy. >> so it is not a politics problem here, it is not mr. hollande that is the problem here. >> there is no specific situation of france in europe. there are unfortunately some countries that have growth even lower than ours, and some are doing better. , we cannot find solutions on our own. we need to find a global solution, a europe solution. on ourot find solutions own. we are all on the same boat and we need to find a solution that is taking into account all the situations of the countries in europe. >> karine berger, once again, a

pleasure to speak with you. thank you once again. the socialist mp karine berger joining us from fronts. coming up, no deal. balfour beatty rejects john lang's $1 billion offer as too low. we will talk about the portfolio at the center of this transaction. stay with us to find out what is going on. ♪

>> welcome back. you are watching "the pulse."

thanks, but no thanks. that seems to be the response from balfour beatty and the owner of canary wharf group. both announced that approaches for their assets are too low. here with mark, caroline hyde. let's talk balfour beatty. this is an acquisition for a portfolio of assets. >> government-related assets. schools.pitals, they have a portfolio that they, back in june, judged to be worth 1.0 5 billion pounds. john lang looked at this and thought, maybe we will put in a bid. probably lowballed it. today, we got the response of balfour beatty. say,ritish builder, they it falls significantly short of

what we think it is now valued. thinking, we are going to reassess how these -- how much these are worth. >> i think it may be higher. >> funny that. >> one to watch there. we will wait for the orders to come back in. >> the share price is higher, probably. >> precisely. let's talk about canary wharf. >> the financial district is further east from here. it is canary wharf, which has made its business to grow and house the financial markets, but also is expanding. they have financial technology companies. they having to bidders bringing new people to canary wharf. they aren't trying to build themselves up. the owner of canary wharf, 2.6 billion pounds is how much the

qatari investment authority have pitched. it is the second time around they've made an offer. it is 350 pence per share. 9% lower than songbird had said it is worth back in november. songbird saying, once again, you are not fully valuing this unique position of an asset. facts they are not fully rejecting it, just saying it is not valued enough. we are not dismissing this out of hand. >> doesn't seem to. they are writing a letter to shareholders saying, we do not recommend it. the reason songbird is rising in terms of share price. the u.k. and why balfour beatty is rising, everyone is thinking, could these players, back with a more juicy offer on the table? >> we will see what happens in a new year. thank you very much indeed.

let's all caps on of the market news that we are watching. we are focusing on probably a two-base hit away. he is a yesterday to today in the context. yesterday was the ecb. we saw equity market under pressure as the ecb's/expectations for in place slashed expectations for inflation. we are going out feelings really there are differences with regard to the language. the market taking the view that if they can't agree on a language, we are talking about how much they can increase the balance sheet by, maybe they can't agree on the amount of qe or whether we get any qe at all. the euro went up. the stock markets dipped yesterday. they bounced back a little this morning.

we are waiting now for the payroll number out of the united states. when we come back, we will talk about the clash of cultures. rio and glencore. i spoke to the ceo of rio. i will bring you that interview. ♪

>> welcome back. you are watching "the pulse." i'm guy johnson. francine lacqua is back on monday. let me talk you through the headlines. german factory orders rose more than forecast in november. orders grew 2.5%. the data shows signs that europe's largest economy is continuing to recover. the beat, as the bund is bank -- bundesbank growth targets grew.

protesters have taken to the streets in the united states for a second night. this follows a grand jury decision not to indict a white new york city police officer who was videotaped putting a black suspect in a choke hold. the man, eric gardner, later died. nasa will make another attempt to launch its own ryan spacecraft. -- orion spacecraft. ofecasts show a 40% chance favorable weather conditions. this will be nasa's first manned space shuttle program. back on earth, let's talk about mining. let me take you to my exclusive interview with sam walsh, the boss of rio tinto, telling bloomberg it is business as usual for now. this as the market continues to speculate over a revised offer for his business from glencore. >> at the end of the day, it is a decision for the board, not

for me personally. this,y, when you consider there is a whole raft of things you look at in terms of how business -- in terms of our business and their business. >> you think they come back in april? >> i have no idea. it is a question to tony hayward, not to me. >> you are a man who likes to plan forward. are you planning for that event? are you putting this business on a footing where it needs to think about this? >> the most important thing is that we have a strategy. we have a game plan for how we are going to run the business. it is important that we stick to that game plan, that we don't get distracted or deviate or do something silly. that is not the way you run a business. , as is the board, that our strategy to deliver

growth and to increase in thelder returns is very best interest of the shareholders. rio'slso asked about commitment to returning cash to shareholders. this is a big deal. people are paying attention to this. the company just raw down its debt. does it now, given the iron ore drop, need to start to raise that debt to deliver on its dividend? here is what he has to say. >> this surprised people in february. traditionally, we made that decision in february. as i mentioned, i was not going to be distracted. business has been incredibly well positioned. we have provided options to the board in relation to growth and shareholder returns.

of theed 4.4 billion out cost, billion, not million. -- june 30,ur debt 2013 to june 30, 2014, $6 billion. we almost halved that capital. that puts us in a strong position. >> sam walsh, the ceo of rio tinto speaking to me yesterday evening. let's talk about the other company news we are focusing on. jpmorgan has put another mortgage bond trader on leave according to people familiar with the matter. it is the latest in a string of suspensions. the traitor had worked for jpmorgan since 2008 after being previously employed with bear stearns. in 2008.ught by jpm fidelity investments have cut their stake in takata as the

airbag crisis escalates. the company sold 79% of its stake in the japanese airbag investor. at least eight investors have sold all their holdings amid the global crisis that has been linked to at least five deaths. catching up with google is impossible. that is what the orange ceo told bloomberg in an exclusive interview. we spoke to him at the conference in paris. let's take a listen. giant in a digital europe, is still maybe a dream. but it is a project that we can have in our mind. google, like google, in the same business as google, i don't think it should be a project for europe. impossible to catch up in terms of the technology. ephane richard

speaking to caroline connan. the french banks throw down the gauntlet. how far has it come in the fight against the u.k. banks? we are going to ask the chairman, next here on the pulse. ♪

>> welcome back.

you are watching "the pulse." , metro bankars ago declared war on the so-called big for high street vendors in the united kingdom. lloyd's, barclays, hsbc, and the royal bank have a stranglehold on market share. refusesart startup bank to be intimidated. how much progress has metro made? what does metro make of the latest developments? let's find out. vernon hill joins us now. you and i have had a quick conversation at the break as we prepared for this interview. you said, we can't grow any faster. goingt something that is to continue to be true? is it true five years down the road? base.me from a low how much of what is going to happen in the future is going to be a story of metro suddenly

getting bigger? the base gets bigger every year. that is right. good morning to you. this is about building a completely different bank from scratch. it is not a better u.k. bank. one of our marketing strategists joined a revolution. that is what we mean about reinventing how retail and business banking is delivered. this is the fifth new bank i've done by scratch. >> how does it compare? >> we are seeing growth rates no one has ever seen from a startup bank in america or europe. as you said as we started this, you have a banking world in britain where you have four or five large banks that control the market. they have acted like a cartel should. they have underserved, miss charge, and underinvested in their business. the common thinking is, they have a stranglehold on the

market. what we've seen in the tech sector and our sector is, if you give the consumer something better and make it a clear difference, they will switch. going over 100% a year. the customer satisfaction rates we get in lots of surveys, the brits are saying, thank god we have a choice. i might also say, while the press about our banks is mainly about the consumer side, the commercial banking side is larger than the consumer side. what we found as we started is that the business sector, let's call it the sme sector, is even more underserved than the consumer sector. the major banks miss serve them in credit and opening new accounts. we have the advantage of building a platform from scratch. we are not burdened with the

problems of the past. we are not burned out -- burdened with i.t. systems. we have designed a system to deliver a service and convenience every day. >> there are a bunch of press articles. it is very slow progress. if you look at one set of numbers, 100% growth, the numbers are great. the journey from one to two is very different. you get a different percentage growth rate in terms of the number of customers you have. is there a tipping point in the next few years where you say, we our first we have got one hundred thousand customers, we start taking off now. is it that the base needs to get bigger? where do you get to the point at which the base is big enough that you start making a profit? >> we passed that point. we have 420,000 accounts. the law oflarger,

economics does lower the percentage. example, i have to use american data, the average american bank branch 30 new accounts per month. 70 new accounts per month. that is the magnitude of difference. we are seeing growth rates that we never dreamed would happen. the british customers are voting with their feet. what they say to us is, we clearly see you are different and you've given us a choice. beto you think it would better if you are given more help when it comes to capital? banking is a capital-intensive business. would it be better if the regulators gave you more help? than banks should begin half the requirements or a quarter of the requirements in terms of capital -- are you being given enough help at this stage?

>> it would be helpful if we knew what the rules were. they seem to change about once an hour. >> are they stabilizing now? >> it is hard to tell. a lot of the capital rules are coming out of europe. it is changing every day. it is not that we want lower capital requirements. we are required to have higher capital requirements. we would like a level playing field with a large banks. the british government has been very supportive of new entrants such as us. but what we want is a level playing field in capital, competition, payments. the british government has been very helpful in trying to open that up. >> just a couple more broad questions. is there a concern in your mind -- i'm interested in your take on this -- that britain is

ending up in a situation where private sector debt is growing too fast again? you have been through this a number of times. the are you seeing landscape developing into? >> i'm not one to comment on the level of debt for britain. that's not my area of expertise. >> you are in the banking business. >> i'm in the business of taking market share from the incumbents. is a tremendous place to do business. in many ways, more competitive than america. i would encourage the british government to open the markets even more, encourage free competition. we believe in free markets and free choice. i believe the british government has a gone a long way to improve that. >> do you think the british banking sector would be better off if it didn't have rules from brussels? >> we will like to know what the rules were. that would be a help.

you wonder if the same rules should be applied to france and britain. it would be helpful if we could plan for rules over a period of time. >> i think i've got an answer there. would your life be easier if there weren't regulations coming from brussels? >> let me put it a different way. it is much easier dealing with the british government then the ones from europe. >> i think i may have my answer. one final question, the deferred losses story coming out of the autumn statement a couple days back, certainly will make life more difficult for the larger banks who have deferred losses because they were around when the losses were crystallized. is that an advantage to you? read how that is going to change the landscape for you?

>> it doesn't apply to new banks. it doesn't have any direct impact. on yourt has an impact competitors. >> i don't think it is a major issue. they are not losing the ability to use the tax losses. they have to take them over a longer period of time. >> thank you very much indeed for stopping by. the metro bank chairman and cofounder, vernon hill. let's get more now on a bloomberg exclusive we delivered to you earlier. we have been speaking to mark zuckerberg. with over a billion people using his social networking giant, facebook's sucker berg has set its sights on a new goal, getting everybody in the world, yes, in the world, connected to the internet. >> it turns out the biggest hurdle isn't either technical or affordability. it is the social challenge. the majority of people not connected are within range of a

network and can afford it but they don't know why they would want to use the internet. if you grew up and you never had a computer, and someone asked you, do you want to buy a data plan, your response would be, why would i want to use this? >> facebook is a for-profit company. why call it .org? is this a nonprofit? what if we were focused on profit, the most reasonable thing for us to do would be to focus on the first billion people using our product. the world isn't set up equally. the first billion people using facebook have way more money than the rest of the world combined. from a business perspective, it doesn't make a huge amount of sense. the reason we are doing it is to connect the world. we take that seriously. to some degree, you can't really do that if two thirds of the thed doesn't have access to

internet. i do think it could be good for our company as well. a lot of these countries and economies will develop and overtime, they will be important. speaking toerberg us exclusively here at bloomberg. starbucks is opening a premium coffee store in seattle. a combination of a cafe with a coffee bean roaster he, the store will allow the chain to do production of its reserve line of premium coffee sourced in small batches that sells for more than $20 a pound. starting next year, starbucks plans to open hundreds of locations around the world, coming to a town near you. singapore airlines says travel agents mistakenly sold some business class seats as economy seats. soldirline says the agents the tickets using a booking class that was designated for economy seats.

with agents ing australia to recover the difference in fares. i wonder who is going to pay for that one. mobile card booking app uber garners a $1.2 billion round of equity funding. that gives the company a $40 billion valuation, more than double what it was in june. uber has raised $2.5 billion in funding since its debut. says the company is in a tremendous growth period and could create more than one million jobs worldwide next year. -- theup, the wider windier, sorry, the windier, the better. flying wind turbines that can reach higher altitudes and more energy. we are going to show you the pictures and bring you the details when we come back. ♪

>> welcome back. you are watching "the pulse." on bloomberg tv, on the radio, on the case of new energy as well. the german-based energy giant eon is shifting to focus on renewable energy. german utilities have taken a hammering on the financial markets with strains eroding

prices as well as the switch to green energy. this a result of the post-fukushima phaseout of nuclear energy. let's talk about renewable energy when it comes to skyhigh. energy. flying wind turbines, we are talking about here. the pictures you see in front of you are what we are talking about. softbank is investing in a u.s. company with technology that can lift wind turbines into higher altitudes. this would mean more power, more consistent wind. sente turbines are significantly higher. as a result of which, you start to pick up more consistent air streams. you then have a very large cable which brings the power back down to earth. there are issues that surround this technology. aircraft and air traffic control.

nevertheless, looks like a cool technology. we will wait and see whether one of those is flying over your house shortly. just when you thought you had seen them all, a russian tech startup is launching its phone. there was a previous incarnation which we brought you here on bloomberg. how is it different? the first difference is fairly obvious. it has two screens. one that is always on. it looks kind of like an e-reader. the other side is a bright, normal screen you associate with a smart phone. it has been used in international diplomacy. we went to the launch to check it out.

>> [indiscernible] we are well known right now in china. yotaphone 2, i

apologize for the pork sound quality. we are seeing a bounceback in equity today. we will have more in the next hour. plenty more coming from paris as well. see you in a minute. ♪

>> fed up, fighting back. but french unemployment at french leaders gather in paris to deliver a positive message. io tinto says a deal was -- with glacol would be a bad fit. gettingkerberg on why people connected is more important than profit. good morning to our viewers in europe, good evening those in asia, and a very warm welcome to those

ust waking up in the u.s. i'm guy johnson. backine lacqua will be monday. you're watching bloomberg television. live from our london headquarters. some french business leaders are tired of criticism. they are organizing a meeting in paris. it translates as "let's bank on france." as there and has a series of exclusive interviews. >> this conference is all about boosting the image of friends at a time when the french economy pastarely grown over the three years. the unemployment figures we got yesterday for the third quarter and france were very bad. 10.4% unemployment.

jobless claims have risen every month except for three since .resident hollande took office some entrepreneurs are trying to innovation.nch i talked to the economy minister marcon who opened the conference. i asked him what these entrepreneurs needed to grow their business in france. >> they do not need anything. they have everything in their hands. they are entrepreneurs. they dare, they want, we just have to help them. >> are you going to help? .> for sure >> the economy minister is going that isduce a new law supposed to increase the flexibility of the labor market in france.

have more shops open on sunday. will that be enough at a time when unemployment is so high? president ollanta said last month that he will not seek reelection if he does not manage to curb unemployment and france. >> the economy minister talking about innovation. what are the innovations we are seeing? what innovations are the ceos talking about? >> this is taking place in the grand palace. it is symbolic. this was built for the universal exhibition in paris in 1900. 200 startups are showcasing and some big companies as well. the new airbus electric plane. some electric boats as well. self defense

umbrellas. i talked to some bigger french ceo, such as the orange stephane richard. idea was to launch a new kind of silicon valley in france. i asked the orange ceo what he thought about that. and whether france could help europe create a new google. >> create a digital giant in europe? it is still up maybe a dream but that is a project we can have in our mind. re-creating like google in the same business of google. i do not think it should be a project for europe. google is impossible to catch up. the orange ceo does not

believe france or europe can create some kind of new google empire. president hollande has done and initiatives to boost these kinds of startups. he introduced 40 billion euros of tax deductions and help for french companies. that does not seem to be enough for executives here. earlier this week in france, thousands of executives protested in the streets to ask for more flexibility of the labor market in france. back to you. have the employers on the streets demonstrating, maybe that should be a hint that things need to change. carolyn conant -- caroline connan from paris. the french-german name. we used to talk about merkozy, nicolas sarkozy and angela merkel. partyntly angela merkel's

has blocked nicolas sarkozy from addressing the party's annual convention. let's go to berlin for the details. our international correspondent hans nichols. story. is a fascinating it is one that has a past and a future. there's the annual party conference of the christian democratic union, angela merkel's party. it will be in cologne next week. there were reports that sarkozy was going to attend. the finance minister wolfgang schaeuble said he looks forward to welcoming sarkozy. it has been made clear to the french counterpart right of center party that while they are invited to attend, mr. sarkozy could not take the podium. reports that mr. sarkozy will not be attending this party

conference. he has a scheduling conflict. he has important meetings in paris. whether or not that means zing of thelear free relationship between sarkozy and merkel is hard to say. it does look like it is not as close as it once was. merkel campaigned and supported -- she did not campaign. she supported sarkozy in 2012. morepect we have a couple iterations of this. >> we do not know who's going to be the next challenger to mr. and 2017. >> angela merkel can bet on another politician and france. this is according to officials in october, they are lining up .ehind another politician

the foreign minister for sarkozy a couple years back. it is a question of whether berlin thinks the ump needs a fresh face. so much drama. >> hans nichols, our international correspondent from berlin. what else is on our radar? mark zuckerberg has been speaking to bloomberg. he explained the motivation behind his internet.org pro ject, which aims to get the loan thene - the world -- world online. >> if we were focused on profits, we would focus on the first one billion people who use our product. the first one million people have way more money than the rest of the world combined. >> more from that interview with

mark zuckerberg coming up later on in the program. another bloomberg exclusive with the ceo of rio tinto. speaking about why his company turned down a merger from glencore. >> we are two totally different organizations. we are an organization focused on the long-term. in terms of long-term relationships with customers, and terms of our greenfield project development. glencore is a trading company. they are very short term in focus. they will trade and do a deal where ever a deal takes place. that is a very different philosophy. has turnedbeatty down a one billion pound offer from john lang for the portfolio of government-backed

partnerships. balfour said the proposal fell short from its valuation. they rejected a similar bid from carillion in august. we will take a break. mario draghi did not commit to widescale qe yesterday at a conference out of the bank's new headquarters. heroes and growth remains stagnant. how -- eurozone growth remains stagnant. how long can the ecb avoid taking aggressive action? we get some answers. ♪

thearly next year, governing council will reassess the monetary stimulus achieved, the expansion of the balance sheet, and the outlook for price .tability >> mario draghi speaking patty in new conference yesterday frankfurt. saying he may have let down investors a little bit. i do not think you should have expected a commitment to fully fledged sovereign qe. were were hints but there caveats as well. what does that stimulus look like? how much opposition is he going

to face? is it comparable to otherqe programs? chiefbring in mizuho's international economist riccardo barbieri. the market ahead of itself with expectations for the press conference? >> i think so. as of the end of last week we had very strong bond markets. extended technicals. a lot of people were betting on an immediate decision. even some forecasters were looking for that. i was not and i continue to look for a decision in january. later thant may come that. we know how slowly the ecb has been moving. indicatedthe language a decision in the first quarter and i think january is the sensible date. >> in the last 24 hours it has been about opposition. many members of the ecb governing council are not as

committed as mr. draghi is here can he get through what he wants? >> yesterday he suggested he can. >> he thinks that. do you think we should think that? >> it has happened before when the ecb started buying greek bonds. a split decision. draghi said if i do not have the majority i will have take a view. runs a unanimous decision he must wait for clear signs of a deflationary spiral. policy point -- using when you are already there, you are behind the curve. i would argue that ecb is already behind the curve and has been behind the curve for a long time. this could get more serious. either draghi changes the communication and the analytical

part of policy. meaning they start thinking that a drop in oil prices is a stimulus economic activity. they are not worried about deepening inflation to a negative rate. if they tell us that very clearly, then they do not need to ease policy anymore. if they're worried about a negative spiral with negative inflation trends. and then weakening expectations growth,ible nominal gdp they need to act in january. >> they do not have a growth mandate in the same way the fed does. they have a single needle in the compass as mr. trichet pointed out. >> in the old days they also had money supply and then they dropped it. in theory it is still part of the framework. money supply is below target as well.

so it is also pointing in the same direction. my long-standing view is that actually the european treaty, and anything that regards the overall goals of the eu and the ecb, would allow for something mandate.a that is not how it has traditionally been presented. it would not be exactly the way maximumhedges, which is growth on employment and price stability. in the european case it would have to be maximum growth on employment subject to price stability. which is different. trade optimization. it would still allow the central bank to say because inflation is very low, it is likely to stay low for the considerable future, we want to bring down this unemployment rate. we want to take growth higher. that would be legitimate based on the european treaty.

this is not the prevailing view at the ecb. >> let's talk about the bundesbank and the form in which qe is likely to come. of theidmann, boss bundesbank, speaking in frankfurt saying unconventional ecb measures have side effects. probably hinting at the negative side. that few of the side effects is going to have a constraining story when it comes to qe in the ecb. be at theent will qe the fed, andboe, japan? the side effects, maybe some of us would agree. the key criticism on the part of the bundesbank has to do with buying sovereign bonds as being . quasi-fiscal policy operation

that makes it different from the other countries you mentioned. where this issue was not mentioned. of fed combined purchases nbs because their goal was to stabilize and bring about recovery in the housing market. the bulk of the program was on treasuries. in europe this is the issue. the sovereign element of the march operation -- of the monetary operation. otherwise it is clear that using sovereign bonds to go about -- >> either way you get quantity. >> exactly. you bring down the risk-free rate. the bund yield. yields in other countries and other asset classes follow the decline.

you do not need to go into corporate bonds, into abs, covered bonds. the whole market rallies and spread to tighten on the back. that is the difference. in the case of europe i think the ecb is focused on the fact that the banking system is more important in the transmission of monetary policy than it is in the u.s. that is the first fact. the second, we have this problem of the sovereign element of the whole thing. >> nice to see you. riccardo barbieri joining us from mizuho. we have to take a break. the devil will now be able to order his or her prada online. brand's renewed push into digital. after the break. ♪

>> 23 minutes past the hour. you are watching "the pulse." we are live on bloomberg tv. we are expecting prada to post results in a couple hours' time. with protests in hong kong and a clampdown on lavish spending, the outlook is not all that flashy for prada.

caroline hyde? >> shares have been falling ahead of 11:30 when we get the numbers. we generally expect profits to fall 18%. expecting sales to dip 1%. a lot of currency translations will be hitting the bottom line. like for like sales are going to be down 5%. the reason is largely china. ongoing protests in hong kong. pro-democracy protests fell within golden week and are continuing. it is stopping spending in hong kong. from the chinese mainland they tend to go there because taxes are lower. and the crackdown on lavish spending we have seen. trackhas not had the best record. last quarter they beat estimates. before that they fill

every single time. analysts are doom and gloom. hold, 12 say sell. >> the devil is online. >> they just revamped their website. from a personal point of view i am not wildly excited. >> why not? >> i think it is boring. go to burberry, leading in terms of online retail. it looks like a flash-online first company. the way you scroll down the website. it looks sophisticated and tech savvy. is very sober and minimal. it gives you a lot of detail. g'sacan find out about eigh size and shape. >> you think it is built by fashion people and not tech people? >> that is my feeling.

this is a company waking up to the fact that it needs to be more online friendly. burberry has 3 million followers on twitter. prada has 171,000. that goes for the other luxury players, burberry is the standoff. i think this is where they have to to start wooing people buy online. if you are not going to get people in your stores because there are riots on the street, how are you going to woo them in? they're trying to shout prada as a long-term brand. it needs to work a little harder. >> we will find out.

our european business correspondent, caroline hyde. the rio tinto ceo telling me that a merger with len co. would not be a good fit. i will bring you that interview after this break. ♪

>> welcome back. you are watching "the pulse. live from bloomberg's european headquarters in london. french and will be back monday -- francine lacqua will be back monday. german factory orders thgrea 2.5%. showing signs that europe's largest economy is starting to recover. as the bundesbank cut growth rates.

protesters in cities across the a grand jury's decision not to indict a white new york police officer videotaped a black suspect in a choke hold. , later, eric garner died. not that will make another attempt to launch its orion spacecraft. show favorable weather conditions. will beat nasa's first manned program since the space shuttle in 1981. let me show you what euro-dollar looks like. a situation where we have a little bit of a recovery for the dollar. the euro spiking during pressday's draghi conference. 1.2363. there was an expectation we would hear more positive qe

noises. we did not get them. they were arguing about the nuances of the language they should put into the statement. it is the reverse course for the stock market, stoxx 600. that was the dip, that is the recovery. ever the last couple days, those .3 percent.own by that could change. we are anticipating payroll data from the u.s. 230,000 new jobs. that will be a central theme of coverage on bloomberg television when that kicks off stateside. tom keene will be at the helm of "surveillance." across america. alan krueger will join us. president obama's former chairman of his council of economic advisers. coral abouted to

the jobs market and its nuances. particularly the debate in america over wage growth. the idea is our central bank cannot move over they -- until they see a legitimate wage growth. some feel that we are seeing now or soon, others feel it is nowhere in sight. en from morgan stanley as well. a lot of other things we will be looking at. we will look at the holiday season. something i know you are an expert on, expensive women's shoes. i'm not talking about thousands of dollars. $600 or $1200 a pair. this is news you can use. we talk about fancy shoes. >> i am an expert. let me explain.

there is a person that sits next to me who is not here today. if you look under her desk, it looks like a shoe store. more organized but you are not far. have somesay i qualifications for talking about expensive women's shoes. >> i been working to get ready for the show. is it christian loui ouboutin? i cannot pronounce it. >> i'm looking forward to hear how you pronounce it. >> more important, jobs day. >> tom keene with "surveillance." at me turn my attention to man who hopes to have his feet

on the ground. sh interview with sam wal of rio tinto. business as usual as the market speculates over a glencore offered for rio. the day it will be a decision for the board and not me personally. this,y,when you consider there will be things to look at in terms of our business and their business. >> you think they come back in april? >> i have no idea. that's a question for tony heywood and not a question for me. you are a man who likes to plan for it. are you thinking about this as a possibility? >> we have a game plan for how

were going to run the business. it is important that we stick to that game plan. that we do not get distracted or do something silly because we notice that someone is hollering from the grandstand. i'm confident that our strategy to deliver business improvement and to increase shareholder returns, that is in the best interest of our shareholders. story for the m&a real. the other story is the sharp incline -- the sharp decline in iron ore. the question about rio aside from the glencore acquisition, will this company be able to return to shareholders> if it does, will it have to take

on more debt to pay that back to shareholders? .am and i talked about this >> i expect a surprise for people. madetionally we have that decision in february. planll stick to our game rather than somebody else's. the business has been incredibly well positioned. we have provided options and relation to growth and shareholder returns. d our debt by $6 billion. .e've almost halved our capital

that puts us in a strong position. >> sam walsh of rio tinto speaking to me yesterday. coming up, the french reconnection. the ceos of france's biggest ampanies have rolled out bonanza. is this going to be enough to restore faith in the french? we are going to paris to try to answer that question. ♪

>> 40 minutes past the hour. you are watching "the pulse." starbucks is opening a premium coffee store and seattle. of a cafe with a coffee bean roast. to boosthoping production of the company's reserve line of premium coffees. they apparently sell for more a pound. starbucks plans to open around 100 reserve only locations around the world. coming to a town near you. singapore airlines says travel agents mistakenly sold as this class seats at economy seat prices. sounds like a great deal. agentsline says travel used a booking class designated

for economy seats. singapore says it does not immediately know how many people are just those tickets and is working with travel agents in australia to recover those fares. a mobile cart booking at uber has -- the mobile car booking $40uber has a billion valuation, double what it was in june. $2.5 billioned since funding started in 2009. the ceo travis callakalanick has said the company could create more than one million jobs worldwide next year. let's give you another company angle. meet the company promising sight. worldhan 40 people in the

suffer from total blindness. robotics could change that. caroline connan met with the french company developing the bionic eye. >> this is a door. she was diagnosed with a degenerative disease. these glasses are helping her recover some. >> i feel like the first man who walked on the moon. >> she's involved in a clinical trial of a retinal implant system. >> this is the surface of the ocular globe. you have this on the surface of the retina. camera transmits the

signal to the implant behind the retina. that allows the eye to see. in 2 dimensions for now, shapes and shades. it costs 100,000 euros. first it needs approval. something its u.s. competitor already has. that does not worry pixium. >> we have a different camera system. it works like the retina. the number of electrodes, they are 60 and we are going to have 150 with a better resolution. to begin hopes clinical trials for its next device by 2016. 2000mplant will have electrodes. >> we believe it will be able to recognize faces and maybe read. barbara,tients like

the future can only get brighter. bloomberg, paris. to read again, that is quite amazing. innovation out of france. french business is not completely flat on its back. that is the view we are getting out of the event taking place in paris over four days. we are there. caroline connan is there. she's joining us. you've got some great guests. you bring us another now. over to you. >> that is right. many innovations, just like the one you just saw. many startups here to boost the image of france. that's the idea of this conference. to talk about these issues, i am of one ofthe founder the biggest creative agencies

for advertising and france. good morning. >> you were born in spain. successful --ery you have become very successful and france. tell me what have been the main challenges to grow your business in france. >> my challenges are very different in france. [indiscernible] and france, we have possibility and creativity. it is very strong here. if you are clear on what you want to do. if you are sure about your project. i am obsessive. i want quality.

i see the most important thing in france to be quality. [indiscernible] if you want to be competitive, you want to put more and more quality. courage.ivity you need to say no, we do not do this but this is important. >> do you think some of the problems may be high taxes or the lack of flexibility of the labor market in france? >> because i worked in the united states, new york. to work inroblem france in this kind of area. i think the true problem is france is a comfortable country. having strong comfort

. to set ok, ited is more important to be strong in the world. i think we have a problem of confidence. compani conferences here is titled are the french lazy or clever. what do you think? >> in between. i think the french are clever. americans are clever. i don't think we are so different. prizes.ve many people are strong in france. ,n design, decoration

aesthetics. think sometimes we are not lazy. -- when you have advantages this is very important. , if you have leadership and people who work a lot. brandsadvise many french and american brands in france such as mcdonald's and air france. do you think the made in france export?lps to >> the people outside are more positive than the people inside. [indiscernible]

it is positive in some areas and negative in some areas. they have -- we have many things. , some difficult thing things are hard. [indiscernible] people know they are very positive in food. air france. people are positive. at the same time, it is not enough. a brand is a brand. not because it is american or french. sometimes they say forget france, forget the u.s., forget england. what you do for the world and for the people. it is very important.

it is the reason i love to work for french brands. in france is a f good company. saide thing marcon yesterday is france is afraid of change. can you tell me how you are helping brands who are afraid of change? change.e is afraid of we need to move. the most important program is not a brand, it is people. changes.ople move, it [indiscernible] we have to change to adapt to the people. founder of thea, advertising agency and executive president of havas worldwide. back to you. >> caroline connan, thank you

very much indeed. the view from france. we are going to -- we are waiting for the orion launch. a40% chance ofas a large today. higher winds and rain. it has already been delayed. the first new technology launched capable of carrying people by nasa since the early 1980's. 1981 is when we saw the first launch massive.he gap, hopefully that will take off later. we think it will take off just after the top of the next hour. we will be back with that in a few minutes' time. ♪

>> welcome back. you are watching "the pulse." we are live on bloomberg. come. . i'm joined by hans nichols. the first thing is payrolls. nonfarm payrolls. the estimate is for 230,000 jobs. if that member holds it will be the 10th month you've had more

than 200,000 jobs. if there are not any serious revisions you well, for the first 11 months, had the most jobs added to the u.s. economy since 1999. the unemployment rate is expected to calm in at 5.8%. that would be the lowest since july 2008. i want to see what we were doing , that is how far back you have to go for these numbers. >> let's not do that. -- you areog with interested painting what the duchess of cambridge will be wearing in new york. europe so i i am in should refer to them as the duke and duchess. they will be going to new york raising money for saint andrews. saint andrews where the two of ofm met, it has an endowment $156 million.

a boarding school in delaware, saint andrews, has $200 million endowment. one hour, eight minutes and 11 seconds until orion lifts off. "surveillance" is next. ♪

>> this is bloomberg "surveillance." >> the state of american labor. millions of new jobs, are they quality jobs? to disinflation.

we'll cannot find a bid. shoes from that girl from bowdoin. we are live from our world headquarters in new york. friday, december 5. i'm tom keene. joining me is scarlet fu and brendan greeley. news from the white house. president obama has made it official. he's nominating ashton carter to be the next secretary of defense. more on that from peter cook in a moment. congress is one step closer to a deal on a budget bill that would push off the fight on immigration until january. one of the keys is a symbolic protest president obama's order. spoke. boehner