germany's finance minister says greece may need more time to bring down it step is its before leaving its bailout program. victim finds itself the of yet another possible attack as its playstation store is taken off-line. >> china's stock market boom continues. check out this chart, the shanghai composite moves above 3000 for the first time since 2011. the right-hand side of that chart makes very interesting reading. good morning. you are watching "the pulse."

we are in london. a the greek parliament passed 2015 budget last night, but they haven't reached an agreement with their creditors to receive their final payments for some 7 billion euros. ministers meet in brussels today after the german chancellor increased pressure on france and italy to reform their economies. hans nichols joins us now from berlin to discuss this. is there a solution for greece or are the markets really spooked? >> it looks like wolfgang choi blood may have just hinted at a solution. you have a technical extension, a longer-term discussion about what greece needs to do. we are talking about 2.5 billion euros. wherepeaking in brussels finance ministers are gathering, he says, it looks like greece will need more time. that is more time for the longer-term bailout.

there has been a lot of talk about a technical extension. markets.d calm when we saw this whispered about last week, you saw yields starting to drop on greek debt. there is a little bit of exasperation, francine, in his voice. he talks about, it won't be the first time. he also had some compliments for italy and france as well. let's talk about what has been going on in france and italy. an ongoing sense of frustration as well. the italians finance minister jumping into the inflation debate. what has he been talking about? inflation, notut getting close to 2%, the challenges on prices. what just happened was interesting. he said the rules that apply to greece apply to everyone.

he also praised italy's structural reforms. the context of this, yesterday, chancellor angela merkel gave an interview to a german newspaper and she was somewhat critical of france and italy, saying that both of them needed to do more to reform their economy. choi blood is a little more conciliatory. that is going to be an interesting meeting today in brussels. it is not just greece on the agenda. it is also france and italy. >> let me get your comment on these. the head of the eurogroup making some comments in that meeting. he said he does not feel confident at all when it comes to greece. not everybody sounding as if they think a deal can be done here. we also need to factor in, if we don't get some technical

extension, where does that leave us with greece. >> if you don't get a technical extension, that puts them in a very difficult session -- situation domestically. we are expecting some sort of election in february. if they don't get the technical extension, and that is what the finance minister is referring to, not the overall deal, i would be careful on that distinction. is he talking about an overall disbursement of aid as part of the program? or is he talking about a technical extension? if it is the former, you could have elections a lot earlier in greece. guy, you spent a lot of time there as well. you know how crushing the reforms have been and what have as done to the left of center party. they would likely come into power.

would they continue with austerity measures or totally throw it out the window and would you be starting back at square one? this is an exciting moment and we will be following all these comments as they trickle out of brussels. >> certainly an exciting moment, hans. the markets are a little bit more nervous than they were a couple weeks ago. >> as sony reels from the hacking of its entertainment unit in an attack allegedly originating in north korea, playstation's network has also been targeted. why? that's find out. hide joins us now. -- caroline hyde joins us now. >> lizard squad, they are who are claiming credit for the attack. they have been on twitter saying, psn login, off-line. it was about 2:00 a.m. london time that the experience was

difficult for people wanting to get online in games. they had difficulty connecting. if you had an online game, you couldn't really access. you were prevented from logging network.psn now everything is back up and running according to sony. lizard squad, who are taking credit on twitter, are not related to north korea, not related to "the interview congo the comedy -- "the interview,", comedy at the expense of kim jong-un. >> we did also have more news about where the original hacking originated from. >> this isn't just sony being targeted. this is microsoft as well. microsoft xbox, if you were trying to log on, again, you had difficulties. it was lizard squad claiming

credit for that particular issue as well. if you go back to august, this is suddenly a theme. the more you read into this, the more shocking it becomes. in august, we saw sony really targeted by the same group. they went as far as to stage a bomb threat to the president of sony online entertainment. his flight was grounded. it was reportedly said. the fbi started looking into this. it seemed as if lizard squad was taken down. they were taken off-line in august. september, they started to come creeping back. if you look back three years ago, 2011 was when this went on for a month. they managed to take down sony's daysetwork for a month, 23 , 77 million accounts allegedly hacked.

biggest breach of data at that point in history ever. worrisome when you have such an area of growth for sony. it seems to be exposed to hacking. >> it certainly is. >> caroline, thank you very much indeed. >> here is what else is on our radar. japan's recession was steeper than initially estimated. the economy contracted 1.9% in the july to september period of the previous quarter. that is weaker than the 1.6 percent drop initially reported. prime minister shinzo abe is still on course to win next week's election. >> a guest on that subject coming up shortly. job cuts are in the pipeline of bp. this according to the sunday times which cites an interview with bp's chief financial officer.

also cause some projects to be delayed or even scrapped. bp would also cut the oil price consumption it uses when it comes to its day-to-day budget. a ubs has turned to singapore-based technology company for help delivering personalized advice. technologies will use a cloud-based computing engine driven by artificial intelligence to comb through data, extract relevant information, and deliver tailored content to mobile devices. >> that -- >> in our twitter question today, we are asking, would you trust a computer? manager rather than your current fund manager. which do you think is going to generate the best results? let us know what you think about that one. >> my question is, what are the fees like?

up, bailing out the bailout. with euro finance ministers meeting in brussels, the nation passes its first balanced budget in decades. >> will emerging from recession hinder the case of an early bailout? we will discuss what is next for greece when we come back. ♪

>> welcome back to "the pulse." we are live on bloomberg tv and radio. >> we certainly are. we are on your tablet, on your phone, and we are talking about greece now. lawmakers approving the first budget in decades. this comes as euro finance ministers prepare to meet in brussels. what does this balanced budget mean? will the push to exit the program? joining us now from athens is a senior scholar and consulting ceo. good morning to you, miranda. the head of the eurogroup in the last few minutes saying that the extension to the bailout, very much still an open matter. he does not feel confident on greece. what are the implications of a deal not being done on an

extension for the bailout? >> there are several implications. first of all, greece might lose 1.8 billion remaining under the current program, which expires at the end of december. there would be no credit line unless this review is completed. bondsy, greek government would no longer be accepted as collateral by the ecb. greece would be left without the unlessp come january 1 this was concluded, and conclusion of the review is a prerequisite for requesting an extension of the program into three months or six months of 2015. >> what are the chances of the review being completed and greece getting an extension? the review needs to be completed at staff level by next monday at the latest, because

european parliaments need to approve the extension before around therecess 18th or the 19th of december. there is only really one week left in which to conclude the negotiations between the greek government and the troika. >> what are the implications politically in greece? we are waiting to see when we will have presidential elections. they could potentially be bought a little closer. also the implications associated with that. how does this fit into the broader political story? >> that is another complicating factor. that means that probably more time will be needed to conclude the negotiations. the sequence of events is that greece concludes the review at

staff level, requests an extension by three to six months , then that would provide enough time for the greek parliament to legislate the prior actions that are needed as a prerequisite for concluding the review. also, it gives enough time to negotiate a precautionary credit line that greece will need from the european stability mechanism , as well as a possible imfersion of the current into a precautionary credit line. >> how worried are you about the elections in march of next year? >> first of all, we have presidential elections in february. the government has to secure a 3/5 majority, 180 votes. in fact, the position only controls 155 votes.

there is a question as to whether some independent mp's from other parties would support the government candidate. if this parliament does not elect a president, then national elections will be called. one of the things that were read -- that worries market polls.pants is the andf we get early elections -- ends up being the next prime minister of greece, what are your expectations? nobody wants to talk about what would happen to greece after that eventuality becoming a reality. what would greece look like? what would the economic story be?

>> they have moved closer to the center compared with the 2012 elections. exit was a very real possibility. whichtill have any agenda includes higher government spending, increased pensions and forgiveness,ebt forgiveness of the debt that greece owes to official creditors. said they would receive many of the forms that have been already implemented. nationalize some of the systemic bands. this agenda does not provide confidence that funding could be found to implement all these intentions.

syriza would be faced with two choices. either abandon their agenda for lack of funding or they will leave greece outside of the euro area, which they don't want to do. >> all right, miranda, a big story into the next new year. .iranda xafa >> coming up, the crude reality. the impact that the oil price plunge is having on leading oil companies. we are going to tell you what changes they are going to be making as crude continues to crumble, if crude can crumble, fall is probably a better way of putting it. see you in a moment. ♪

"> welcome back to "the pulse live on bloomberg television and radio, also streaming on your phone, your tablet and bloomberg.com. but talk crude. of oil isn the price giving companies reason to examine their strategy. over the weekend, bp said it might cut jobs and freeze projects. total may also delay some spending after the slump in

crude. let's get more on the story. chilcote. now is ryan oil companies the obvious losers. now some projects are at stake. >> they are very much under pressure. bp falling for a third day straight. brent also falling by a little more than that. $68 a barrel. their sharebp, price has come down 6%. if it gets directly passed through, but it is stimulus to cut costs. the cfo was talking to the sunday times. he says, we are going to cut 84,000 jobs. they also have scope to cut cost. that is in addition to the $10 billion worth of assets they had already announced they intend to cut. that is not helping their share price. total also saying that some of the brazil oil fields they are looking to embark on, if the oil price is still where it is, they may forgo those.

drill, baby,s, drill. merge now.h, baby, investment bankers are warming up. thehey may finally get to point at which all those rumors surrounding bp become reality. we will see what happens. what really struck me about this story was, you are kind of decideg to it, if they to make long-term decisions, they are assuming that oil stays low for longer. this is in a flash in the pan. they are actually making strategic long-term decisions based on the fact that they think crude stays down. for you and ihing to speculate. it is another thing if you have a company like bpr total. -- bp or total.

$100 a barrel is supported by the fundamental, not saying they think the price will be there for the next couple years. it has been dramatic. the decline in the price of oil continues. we are at $68 for brent. it could go lower. we were at $67.53 this time last week. wti, i think, is more important than ever to follow. $65 a barrel, just north of that now. on friday, we closed at the lowest we have in five years. if we see, barclays has a note out today, the price drop for declines arere coming. >> ryan, thank you so much. ryan from bloomberg news with the latest on the oil companies. >> you just changed his job.

>> breaking news for bloomberg news. >> we will deal with the details on the break. we have some news coming up. an uber taxi driver has been arrested in new delhi after an alleged rape of a female passenger. local police are considering action against the car booking service. we will bring you the details when we come back. >> german investigators have cleared deutsche bank ceo of manipulating interest rates. germany's banking and markets regulators found no evidence that any management board member knew about or participated in libor rigging. >> founders are cutting their holdings in an indian based company. is set tosale which be worth around $1 billion comes four months after the company appointed its first non-founder ceo. the executive is trying to boost property margins -- profit margins and revise sales growth.

>> coming up, alarm bells for aid. -- for abe. new data shows that recession is deeper than previous estimates. we will discuss the implications, next. ♪ .

." welcome back to "the pulse i am francine lacqua. >> i am guy johnson. >> china's surplus grows to record as oil price contributes. will chinese as towards rose 4% from the previous year and asked force arose leading to a trade surplus over $54 billion. >> the former leader of the scottish party will try to win a seat in the general election in

may. the first minister resigned after losing the referendum. theank of -- warned -- in quarterly review, they said emerging markets that hold large amounts of debt are at risk. the dollar index closed at an eight year high after stronger than expected jobs on friday. artificialaking intelligence. it is planning to use the technology to deliver personalized data to its wealthiest customers. manus cranny is here with more. is it an indication that are saying or we need to stay with the times stay abreast of the latest developments?

>> we are a digital business. we are all digital. >> i am saying ubs is digital. >> you have the transition and wealth management, the rich are rich in the next-generation coming along are much more dexterity is with using technology. competition to extract information that is most relevant with the explosion of data so they can compete. and richom amazon people being -- direct from amazon and rich people being rich. what they have done is ran a competition. qream. 8 teams competed out of asia and this team won. i love this. they monitor patterns.

since many people in singapore million about, 85 different things. food, vanity, travel. taking a data and crunching it down. that is how they personalize the information. -- taking a big data in crunching it down. personalizing it. make sure you get it the instant feed. >> it is not-- advising but crunching their purposes to provide the services that is more suited for you as an individual. >> absolutely. wealth what we think of management is face to face, one to one. this is progress. to complement everything they are doing. it sevenny, we find years. 2 guys. university inmbia 18 technology specialist for 20

years and they devised -- one at , aumbia university and one technology specialist for 20 years and they devised this. we -- flashback. it did not work very well. but it shows you where we are in terms of creating data and voice patterns. that is what these guys are looking at. voice patterns and they are taking those out rhythms -- algorithms and make sure you get real-time. it is all about developments. doing it.sse is what is most interesting is credit suisse is piloting and asia. i love with goldman sachs is doing. complex questions i will love to take an algorithm.

put it into plain english. [laughter] >> yes. speaking to the ceo tomorrow. >> we will indeed. we will get his views on a host of issues tomorrow. it will be markets. and how he ran the bank. >> an exclusive interview by manus cranny. >> let's move on and what is happening next. the u.s. drugmaker merck is in talks to acquire a pharmaceutical company. it is said to be valued at more than $7 billion. matt campbell joins us. cubist.us about why are the attractive? >> it is all about antibiotics .hich is interesting subject it is seen as being a much for medicine. indeed, it was good for a while.

all of the big pharma companies have wanted to do something for cancer and diabetes and arthritis, heart disease as well . antibiotics is seen as a poor relation. cubist has very cutting edge drugs are run andy roddick resistance to prevent antibiotic -- around antibiotic resistance. superbugs which we read about. merck is saying, it is something we want to get into. is in a billion that former world, a mere trifling amount of money compared to some of the numbers. $7 billion. pharma merkel wants to do the small to midsized acquisitions. pretty advanced. >> what does it tells about merck's strategy?

>> merck is not pursuing the megadeal strategy which others seem to be doing. ra.zer had a try with ast they tried with another and that did not work. in normal sleep and vicious transactions that may or may not get to the point may or mayment, they not happen. merck is setting its sights a bit lower and smaller and more manageable. you can argue that is strategy that will succeed given some of the obstacles in the huge transactions. >> i am not going to touch chemistry. market, of how big this it is large. we rely on antibiotics for a large part of the medical

treatment that we live in. au can see how if we can find new way of treating some of these bugs, it can be massive demand. >> none of us want to live in a world where antibiotics do not work. that's an ugly, ugly scenario. years andompanies, decades spent on much sexier areas of science. they are waking up to the risk. where there is a risk, there is a market. they are not doing this out of out truism. there's an opportunity for these drugs. -- they're not doing this out of altruism. they are trying to make existing antibiotics more effective. they are coming up with a new antibiotic concepts which are very difficult. if there were easy wants to find, they would've been found already. andl have to see how cubist

other companies are able to progress on what could be enormous market. >> are we going to see many more pharma deals from now until the end of the year? >> we are getting to the wire. we have another week or two which is serious work will be done. doubtful we will see another megadeal as the astra/pfizer scale. you never know. things come out of nowhere. these are huge companies. they face big, strategic challenges. you never want to rule out big deal making. >> matt campbell. now, japan's recession deepens abutted the slowdown does not seem to be putting a dent in prime minister shinzo abe's plans. after the break. ♪

>> welcome back to "the pulse." to japan and a red flag. less than a week before the nation has to the polls, if finds out the recession was deeper that initially estimated. joining us now is the director of mitsubishi international. great to have you on the program. you argue recession is a little deeper but in the great scheme of things, not that bad. , it is the adjustments

not significant. second, we have to see the japanese downturn in terms of bringing forward of spending up to the increase in sales tax. it is quite natural we should have a bit of a low and spending. when historians look at this, they will say that was probably no recession in japan. and i would expect to see some rebound coming through into the winter of this year with the end of valuation and through the sort of smoothing out of the cut in spending. >> you would expect the government and central bank to set policy for the long-term or at least the medium-term. policy and japan seems to be hoof and where panic

is used quite frequently, i am talking about how policy is being formulated. take a step back. what is going on in japan. what is the big picture? you are saying smooth out economic data. >> the big picture is off a numbness is not succeeding and printing a -- abenomics is not succeeding in bringing a surgin and breaking the cycle. when you bring it with a surprising weakness of the economy in the middle of this year, it is rough for the ruling party and the boj. that instress, the fact the boj and government has responded to this apparent cyclical weakness. at the same time, the comedy may be true -- and economy may be transitioning. it is happening everywhere. we only have to look at the history of the united states. every time the fed talk about

shifting policy, cycles moved onto the next stage. >> how significant is that when we're looking at elections? looking at elections on sunday. given what you said and the fact that may be and is not much of a recession but it is very politically damaging to have these figures published six days before an election. >> the election result is going to produce a big majority again for prime minister abe. >> a he will lose seats? >> he will lose seats. beyond that is what it means for the monetary policy. he will have to realize that despite all talk and tabloids about currency collapse. we are really unlikely to see that. and next year, some type of the yen rebound. cheapest accept for doing the starting of the crisis and the 19 days seven at the

peak -- 1997 at the peak of the bubble. shorte a fantastic position. the great short is in the yen. that is where we are again. price inflation in the global economy -- economy so if we see a slowing down of asset curses next year which is likely, the yen will be the beneficiary. we have to be cautious. >> is that related to the about the dollar cycle? can you explain it in more detail? >> when you look at the u.s., the strong employment on friday and gearing up in the fed for moving policy in line with a stronger economy next year, that should be a warning sign to any contrarian on u.s. monetary policy. maybe the u.s. economy is actually losing a bit of momentum at this stage which

would fit with the idea that the collapse and the oil price is going to lead to some slowdown and spending in the u.s., along with weakness in the export side. >> what's your take on the yen? >> it is very cheap in real terms. a lot of scare about whether the again and pusht the yen down and drive japan and some sort of currency turmoil or collapse. is not a latinan american republic. and a verye biggest rich economy. context, there is a lot of unhappiness already anecdotally and japan about the yen falling so much even if abe has majority. there are factions. putting all of this together, my average would be the yen is an

overshooting territory. brendanon browner -- brown. >> prada has fallen to its lowest level in years. their reported a bigger than expected drop in third-quarter profits. they dropped the lowest since 2012 after the hong kong protests led to a drop in consumption. toe luxury good makers close their stores. >> the ceo of qantas has no -- after announcing losses, alan joyce has dealt with the share price. the international unit is set to post first profits and since 2011. joyce lance to see through a $2 billion cost-cutting program. has released its

first apps for doctors and nurses. angelesoped by a los company. the health care company run by patrick. the first part of the deal will connect blackberry to a system recognizing -- and treatment options. it will be available next year. ng the waves. recent andehind the new energy. ♪

>> welcome back to "the pulse." streaming on your tablet and phone and bloomberg.com. >> waves are taking a beating. we are talking about the downfall of the marine. a couple weeks ago, they tried to sell their visit. one of many blows for the ocean energy industry. it will havedicts other casualties. joining us is the global editor.

what we specific about are talking about. this is wave energy that is turning out to be more trouble than it is worth. >> there are two sources. ray energy. ned the coastal further out in title string which is localized -- the title which is local -- tidal which is localized. >> why is it so tough? what you are seeing is a difficult capitalist shakeout of a lot of venture capital funded wave.ies particularly in strain is better positioned. tidal we are reason to be hopeful it will amount to 2020, we areby losing a lot of the companies.

harder tomechanics deal with the physics of how this stuff works or is it because other stuff is getting more efficient more quickly? and solar are the dominant renewable energy and they have gotten a lot cheaper. they set an example. is of the earth's surface covered in water and there is pressure on that space to get energy at their resource which would be fantastic. the problem is the sea is a harsh environment. salt water, stormy, a lot of energy. you have to have machines reliable and as a big challenge. market could be a big for the future of her noble energy. stream in the next 10 years could emerge as an important business. not make it.re may

i maybe wrong but it is looking darker at the moment it may take another two years before we get significant number of generating power. >> we will leave it there. thank you for the update. chief editor at bloomberg new energy finance. for those of us on bloomberg radio, first word is next. for our viewers, the second hour of the "the pulse." >> we will be talking about artificial intelligence a ubs and in interview with the ceo of ubs and that will be tomorrow. manus cranny will talk to us about artificial intelligence and how they are trying to be more digital. >> we are all in the digital business now. even wealth managers. we will be talked about the fact that the ceo of aer lingus has a new job. he will be taking over malaysian air. in aviation.job we are talking about air france

as well. the latest numbers are not great and the strikes continue to hurt. >> we talk to a ceo up one of the great apps. they are behind everything from airbnb. we will talk to the founder where the digital revolution goes from here and whether it has boundaries. are talking about companies, the backdrop of telecommunications like uber. francine said, airbnb. how and security today and much you have to spend to protect your system. one of the big stories we are watching. sony hacks again. the second time in two ways. how much you have to fear and how much you have to invest in your businesses and customers? >> tweet us. you can follow us on twitter. the question of the day is would

you trust artificial intelligence? if you were a wealthy client, would you trust artificial intelligence to give you advice. we are back in 2. ♪

>> exit on hold. germany's finance minister said agrees may need more time -- greece may need more time to bring down the deficit. sony finds itself the victim of yet another attack. >> the takeover. we spoke to the ceo of a company behind the hottest apps in tech. like looper and airbnb. er did airbnb. >> good morning. a warm welcome to those waking up. i am guy johnson.

>> i am francine lacqua. this is "the pulse." >> the greek parliament passed a 2015 budget last night but it has not reached an agreement. a country where the creditors will receive the final eight of payments of 7 billion euros. in you prime minister's -- finance ministers meet in brussels today. angela merkel will increase pressure. our international correspondent, hans nichols, from berlin. this euro cauldron. we haven't talked about greece. everybody has been told by greece. what are they saying? >> they are saying conflicting things. both heading into a meeting in brussels. you have schauble saying greece

will need more time. they always need more time and he is confident that while some sort of financing and agreement on agrees. another one has a different take or be he said he is not confident and does not know whether it will be a short-term extension and in greece is going to get the requisite amount of funding. look at the calendar on this, the real cut off date is december 14, 15th you could argue the cause of the member states that have to approve any future disbursement. if you get a technical extension, you can set that line of credit could extend further but you have a fundamental problem of what do you do to help greece plug their holes area the estimates is third 2.5 euro short -- 2.5 million euros short. the budget they pass is about budgets but it does not hold much weight onto on to the eu signs off on it. whath, their growth

forecasts are. -- everybody will be subject to scrutiny. >> angela merkel had strong words for friends a italy. -- france and italy. two the store. she said, though budget rules have to apply to everybody and she thinks france and italy the to make chance -- changes by march. schauble may have softened it and said he was quite impressed with italy's reform. at the same time he said the rules need to apply to everyone. strong words from merkel and mixed words from schauble and we had into the meeting be the outcome very much in doubt. describehow would you

the franco/german relationship? how would you see this relation? >> right now, they are confused. air is a great deal of certainty in germany of hold the new leader in france will be. that's why we had this big back and forth. would sarkozy address the conference? pausems like it is on until there's more political certainty in france. said, they- that seem to be on the same page. it is a question of whether or not france can relate undertake the structural changes to their budget and appeasing german voters. , merkel seems to move incrementally and bring the german public all long. it be fastn is, will enough for some of the changes that are taking place?

do you need to wait for the german public? do you need the germans to sign off on quantitative easing? by the time and do, it may be too late. >> hans nichols in berlin. as sony reels from the hacking it appears the sony playstation network has been hacked. joining is a caroline hyde. what was the problem with the playstation 4 smart >> it seemed to happen midnight u.k. time until 2:00. get onto the playstation network to play games online. connection problems lasted about that time. they said everything is back up and running. they are investigated root cause of but this seems to be a cyberattacks. the people taking credit is the lizard squad.

#lizardsquad. they claimed it on twitter and prevent you from locking on -- logging on. a bit of a pr problem. even though it is not sony pictures which was attacked by a group related to north korea and the fact we have the interview they are not finding it funny at all. that is related. tie station also been hit by cyberattacks as well. -- playstation also being hit by cyberattacks as well. >> microsoft is under pressure and it seems like a buildup of something larger. >> exactly. lizard squad have claimed it could get even worse. dose ofd is a small what is to come on christmas. clearly, they will be revving

up. microsoft's xbox has similar problems last week with the xbox one and xbox 360. you got an error code. they were aware of the fact of cyberattacks are a problem. we are waking up to it and the rest of the media. someone getting interested in the gaming area. it is a trend that's been going on. back in august, there was a big focus on sony and the playstation network. sony entertainment was hit by the lizard squad. it went in through an extent they even managed to claim there was a bomb threat on the president of sony online entertainment flight. in sanght was grounded francisco and gotten the attention of the fbi. they are trying to figure potentially who these people are. we understand some gaming

reporters have said the identities seem to be exposed. the lizard squad shut down in august. they are back again. in action once again. sonic goo 2011, we saw off -- sony go off-line for a month, 23 days. millions of accounts were stolen to deal with the playstation. it was a huge embarrassment. that had to go to gaming awards outbig conferences and hand free games and apologize for what was happening. it was the largest breach that had happened. it is something that goes on relatively regularly but we usually do not hear about it quite so much. because of the fury around sony pictures, we will pay a lot more attention to the gaming industry. >> we certainly will. caroline, thank you so much. >> what else is on our radar? recessions deepened and the

economy contracting 1.9% between july and september from the previous quarter. numbers,he negative prime minister shinzo abe is on track to win the elections which are the referendum of his handling of the economy. pipelinets are in the and the petroleum giant. as according to "the sunday times," who had an interview with the chief operating officer. it could cause projects to be delayed or scrapped. the people cut the oil price consumption it used to second the budget. a techis turning to company that uses artificial intelligence to help deliver personalized advice for the sqeem. clients,

andill go through data extract the most relevant information to the top clients and deliver. >> still ahead, the division within. there could be a risk with opec. challengesation's with the oil and energy investor. ♪

>> welcome to "the pulse." opec's decision not to cut oil to -- production may be producing division. that's according to the founding editor of the oil and energy investor who joins us. great to have you on the program. we know venezuela wanted a cut and everybody resisted. is that opec staring down shale oil in the united states? >> that seems to be the perception but it will not be successful. most of the people if we divide opec between the gcc members and the remainder of the association, it is the remainder that has the financial iran,ulties -- venezuela, nigeria. the oil minister of nigeria is

the incoming president of opec so she will have to balance to contend with. members have reserves to allowingnable them to withstand lower prices much beyond the reminder -- remainder of what opec does. the saudis have very little ability to offset this in with the lower prices there are a number of opec members selling their monthly quotas at lower figures. it is becoming a very difficult situation. temple --n a big chemical company, what does it mean for me? cruise in the short to medium-term term, you unmanageable prices. in the long term, it is an issue of sourcing. the most significant change of sourcing we have seen is worldwide global unconventional

crude. the latest estimates are that less than 14% of the shale oil available in the world recoverable is located in north america. it is going to be a global phenomenon moving forward. aboutudis themselves themselves maybe 3-5 years if they are lucky with the strategy. the trajectory downward will remain. >> shell gas extraction is viable? base andends on the the technology. there been some really magnificent advances in technology in north america over the last year. >> what is the pace of its celebration? >> the pace has been a great. if we were having this conversation maybe two years ago, i would have to tell you that $75 is the absolute limit notnd which shell oil is

recoverable. now we're looking at $60 and even below a it is still profitable. it depends on the basin and the company and what infrastructure is in place. the data loadly, and finance of the companies. >> in terms of where you predicted the oil going, it is almost an impossible question. will it stay around these levels or will it go to 40? >> no, $40 will be abnormally low. if you look at the options -- >> they have been wrong before. >> that have been wrong plenty of times. one thing -- first to point out this time around, shorting has diminishing returns. activity wefuture have seen over the past several days has actually been driving the price higher. if i was to guess the fair price of crude oil this morning, probably closer to 68 dollars.

>> were not going back to $100-100 $10. we have come down a long way. maybe a few more bucks. not to the kind of level we were experiencing previously. if that sustained, a massive boost. >> a massive boost to economy's worldwide but a major crisis for nigeria and even for the russians and none opec members area >> how elastic is demand? theemand is restrained at moment which means demand is on its way up. we see many indications of a moving of sluggishly. >> oil prices accelerate that process. >> as always is the case, the lower the price goes, the more people use it. , the oile the main companies are the ones -- a new rounde

massive mergers and acquisitions. we will see activity. there are affordable companies already. size is not always the issue. >> do you have names for us? >> right now, the vulnerable companies is clearly -- they have been volatile since i was advising the ugandan government. there are some -- >> as a takeover target? target, right.r in the u.s., several companies in debt. have -- the difficulty is if you are going down further with high fracking and horizontal operations, you have introduced your operations and will continue. if you're a deal about developing new fields, that is what the problem is. >> trying to figure out which companies and they should buy and thinking there will be m&a

and a credit analysis is probably the best guide. critics absolutely. companiested states, such as cimarron, one of my favorite six months ago is exceptionally vulnerable because of the deck. >> kent moors. up, banking giant ubs is moving and to artificial intelligence. why? we will explain after the break. ♪

>> welcome back. you are watching." -- you are watching "the pulse." and ubs.k tech ubs is making a move into the world of artificial intelligence. it is using the technology to deliver personalized data to is will these customers. the specifics, if you will. revolves -- i tweeted the store. racing toerybody is engage individuals. and the rich need engagement as well. there's a slew of data coming at every bite. they are trying to tailor the data out of ubs to their riches clients. big data. this is trying to take big data

to what is relevant to you and how it works to you as a billionaire. billionaires use tact and make their money in tech. >> how is it different from what they are doing now is mark >> it -- doing now? plements what they do now. we all communicate. the rich is no different. they ran a competition and had 80 teams to see how to manage big data. focus for ubs and terms of finding new clients and really finding the rich. technology and the 80 teams. mobilele evolution of a and penetration is perhaps at its highest. they were to extract information

most relevant to the client with exposure of a data and deliver it tailored. >> tailored information to you. if you're interested in wealth management. >> used to have the personal banker, right? why would you choose ubs to pay the fees? >> that is the whole point of having advisory services as well. it is another complementry. let me give you context. goldman sachs have their version. financial complex questions in plain english and they bought a company to do that for them. they developed the same kind of product started in asia and taking the pieces of data. they take 85sqeem, million -- it is all about voice patterns and what people are talking about. 85 million subjects.

on food,n worse vanity, travel from 6 million people. all of those concerns about privacy and access to data and ubs are ensuring that sqeem has covered those. taking the data and analyzing the out rhythmic patterns -- algorithmic patterns. , thank you so much. tomorrow, a great interview. >> we do indeed. we will see what comes out of it. >> it will be fun. >> i am really looking for. other company news. that theafter reports fund is an disc russians with overseas investors all about buying shares. with in discussions overseas investors about buying shares. the company has lost around 33%.

falling sales. fed cup prices -- it cut prices. the balance sheet could be the center of the store. >> the german investigators have employee deutsche bank after a two-year probe. regulatorbanking found no evidence that any management board member knew in libraparticipated rating. >> blackberry has produced apps for doctors and nurses. it is being developed by a los and it based company the is run by a billionaire. the first part of the deal will connect physicians' b lackberries. it will recommend treatment options. it will be available next year. , call much of the

royal family is worth and what their work is to the u.k. economy. >> looking forward. there are in the united states. ♪

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>> welcome back to the pulse. over the last half-hour we had a little bit of break of what is coming over from the middle east. >> wedded relates to is basically kfc's, etc. across the gulf. there are a bunch of other private equity groups looking interestly to take an

in a group called on americana, which owns a bunch of fast food operations. >> pizza hut, kfc, a hole of the of restaurants as well. bloomberg's because our reporter is on the ground to confirm the price. it is a joint offer for around 4 billion daughters -- dollars. this was after a saudi arabian firm actually plan about of the marketplace. in there interested company operating kfc and pizza hut. we will have plenty more news as we get more news a into details. >> family firm said to dominate the gulf and kkr and ccc putting this deal together. >> here are some of bloomberg's

top headlines. >> china's trade surplus world to a record in november. rose 4.7% from the previous year while imports fell 6.7, leaving eight trade surplus of over $54 billion. in may,al election after a referendum on scottish independence. >> and the bank for international specialists has -- the dollaring is at particular risk. >> let's take a look at the markets. >> thank you very much.

and look at how will you trading. coming roof. down a quarter of 1%. often frankfurt coming off a six-year high. london, down. off by 0.7%. europe only in friday. a lot of talk about stimulus. talking about something being vaguely troubling when the unthinkable becomes routine, could they be talking about the shanghai of article up over 40% this year. some pretty dire trade numbers within china. rallying in the market. could they be talking about the italian trading below 2%, up a today but 2% down run snp graded one notch above. it does make you think about how fragile some of these markets to what exactly

is underpinning some of the evaluations. i will leave you with a big headline. crude oil down, $67 per barrel for brand. that is it 2009 at low. -- about 25 minutes from now, surveillance. metta world looking at today? >> west texas intermediate, the new lows.il down to well under $65 per barrel. with the bang up american jobs report on friday. at him will join us from megan -- morgan stanley to talk to us about whether those stocks will go up. parker with a constructive you for 2015. on emerging markets, will begin surveillance with someone from the buy side.

a great track record, firm oppenheimer finds. when a firm in his view on foreign markets and talk to him about what we have just seen in the last three days of trading. jon ferro's data check signals the turmoil in the markets as they adapt in digest. we'll start out at 6:00 a.m. >> thank you, tom. touchdown in new york city. that must be on your radar. >> i am. i am appalled. we offered to give the babysitting services. the couple, not that you would understand this, but they needed a break from the child. let's be honest. what do you think? >> i wouldn't understand that at

all. >> i bet he has for all repairs. >> i bet he doesn't -- i bet he -- four au pairs. are here to raise awareness for their charities. prince william of mobile going to washington to give important support for wildlife awareness. there is some seriousness to the trip as well. we go away, we leave the children with the grandparents. rexam today. ask her majesty is currently babysitting. >> that would be fine. >> that would be great. stop talking about the royals and start talking about the airlines. years been a tomato juice for malaysian airlines. they have suffered the loss of

two airlines and a slump associated with that. new --y are selling to a it more on the challenges the new ceo faces. while.been known for a what does he take with him? what does he take to malaysian that he is learned over the years that could help turn this around? >> 25 years of experience and he has become known as a bit of a restructuring and turnaround specialist. to take aer lingus as an example, he dealt with enormous tension, government issues ,ecause they own a stake low-cost competition and low-cost involvement in the fact that the ryanair also owned to shares. he took all of that stephan and

has done very well there. he has also done that at sabina, and he was involved with julie. he has a lot of airline experience and a lot coming to the table. one would hope he would bring this all to bear when he takes over. a similar beast, that because of the tragedies. absolutely. it is important to remember that they were losing money before the accidents happen. one is still unresolved. a huge reputational issue. he will have to take on that and the practical side. a 1.7 billion dollar restructuring program, involving over 6000 job cuts. issuesre hard, practical he is very experienced at. >> if you look at the asian market, there are similarities as well. if you want to put this tragedies behind him and move

on, there are, in many ways, air asia. in some ways, he has one of the biggest operating in the market. lesson in some ways do apply to what we are seeing over in malaysia. >> some interesting parallels. government intervention. he is going to have to dive in. all of his experience is in europe so have to see how he does in asia. there is also a cost competition. brian air is a juggernaut. big parallels. when you look at singapore, cafe pacific, they are both been very successful. that is a possibility there is a valuation that can turn around and be successful. hopefully, he will be at the forefront of that.

be goodus seems to ceos. coming from a small airline going onto one of the national carriers. he is an ambitious man. very pragmatic, very charming, exceptionally hard-working. the other thing is he is down to earth. he is not one of the ceos that is all about drama. todoes not like himself up much. he is very confident, but he is not a job or pain. he does not call ridiculous press conferences. they need someone who is able to show empathy, able to be diplomatic, but at the end of the day somebody who is also able to make those tough decisions. >> thank you very much. >> now we mentioned the need and duchess of cambridge's visit to new york. the royal family are sometimes referred to as a serious player

in all sorts of area. areof the rollers stateside, and will take a look at what the windsor's are up to. some of the wireless investments. and them all together britain's first family is worth $83 billion according to the rams finance. 2.3house of windsor cost billion dollars to the economy last her. that is $700 million from tourism. far the biggest financial benefit. the royal baby caused a spike in spending, too. 125 million was made on george-related toys and souvenirs. land across the country bread and almost $400 million.

value of having a girl is worth up to $700 million. in all of this does not come for free. security and maintenance come to almost $400 million. >> leaving on from the royals, we will be talking about a company you probably never heard probably powers a lot of what you did. it is a cloud-based communications platform that works with rubber and a whole are atf companies that the forefront of the tech universe. the ceo and cofounder joins us in a couple minutes time. ♪

>> welcome back, 45 minutes past the hour, your watching the pulse. chances are high that to are using a cloud platform of julio, very involved in your interaction. this is one of the most used apps. theinterfaces take care of link between you and the provider. it is the missing link. at the sun without sharing your personal details, which is pretty crucial right now. the companybout

right now. the ceo and cofounder is here attending a summit. good morning. is that a fair description of your company? you are the bit between never connect us off. >> indeed. when people think of the cloud, they typically think of the service like salesforce. i.t. expenditures also include the devices that we carry and communications. communications is actually 44% of the i.t. budget. nobody has migrated the infrastructure to the cloud yet. that is what we are doing. we were building communications in a completely different way than the holiday has been done in many years. >> only going to faster to slowly?

>> the pace of innovation is only going to increase because canpace at which a company innovate is getting faster and faster. cadence ofd the innovation from software, if you build a mobile app, you can push updates to that mobile app all the time if you have a cloud service. you can update early. the cycle of listening to your customer and innovating is getting shorter. >> your virtualizing and infrastructure that has existed for hundreds of years. if i was at&t or british telecom, i would be thinking this is a company i would want a piece of. do you think eventually one of the companies will see what you as being too attractive? of the largest architectural shifts from 150 year legacy in hardware to a future in software.

it is one of the largest industries in the planet. $2 trillion market. were looking forward to the opportunity to build a meaningful company that will be the bedrock of communication. >> given the fact that so many companies doing this, will you be staying independent? >> absolutely. staying independent means we can build the future of communications as it migrates from the legacy in hardware to the future in software and we get to build a very meaningful company by doing so. >> have you been approached? has anyone said they want to buy your and you said no? >> without speaking to anything in particular, were just focus on building a meaningful company because this is an exciting time in innovation. next we have been talking about this morning, there is a classic case in point. uber is a classic case in

point. they are growing so quickly at the moment. the story is changing so fast at the moment. are you surprised that that? does it present problems? possibilities? how does the half-life affect you? >> it prevents -- presents both albums and opportunities. which innovation can occur. when you build a mobile app, you can put it in the app stores of 150 countries overnight. you can build a web service and have it live everywhere in the world. it is enabled by mobile. i the cloud. these have fundamental internet scale built into them. that is why it is such an exciting time to be building a company in the technology sector right now, because global scale is built-in to this model unlike

any time in the past. it is faster and easier to build mobile companies. when you go global, i asked about the two trends. global i guess is great because you have a chance of surviving market share grabs. canat the same time, you all flat on your face and have too because you have gone quickly. next add is the risk of being aggressive and growing quickly. that come to the companies take risks and move boldly to capture audience. that is one of the things that make it exciting. >> there is a european mindset that says, we're going to give you a little bit of money and

you're going to grow a bit and we will give you enough to grow a bit. that in the states, every time i talk to people there, it is like get a ton of money, scale the business, and we will see if it works. when you look at the global opportunity, it is the way to go? are we missing a trick? the gap seems to be, scale up. a lesson from silicon valley to scale up? is that the right lesson? >> i think there is some muscle memory for silicon valley. at various times when people had the opportunity to invest in something more speculative, something without a revenue model rhetoric, something like say, a twitter. investors may have invested and gotten the road and well or not invested and regretted it.

you have some investors who have taken leaps of faith as investors or entrepreneurs and had that workout because they are thinking over very long time. one of the things silicon valley tends to do well is thinking up a long architectural and technological changes. they invest for the long-term. you may not see the revenue or nextt growth next year or quarter, but thinking about what technology is going and investing and head of that curve to build large, meaningful businesses i think may be something people around the world can take that leap of faith because over the long-haul, over the fullness of time, we all know where technology is going. the general direction. it is getting easier to use of cloud.ucts because if you invest in the right trends over the long haul, those things will probably work out. you also have to have the

willingness to fail. that is another silicon valley trait. >> thank you to the cofounder of twilio. >> we will tell you what to watch for the rest of the day, coming up.

>> welcome back to the pause, streaming live on the ipad and

of course on bloomberg.com. >> let's start off with greece. a slightly better understanding of, let, how could finance ministers solve the problems and grace? where will they do to get there? they have a short fall, they have a gap. the clock is ticking. december 15 is the deadline. if they do not need to december 15 deadline, there is some real problems like potentially the collapse of the greek government. >> let's all also talk about princess. >> prince meets the president in oval office. i remember being with president obama when he visited the queen. they had a nice relationship, a nice talk. and see what they talk about in relation to wildlife reservation. dear to both of their hearts.

thank you very much. >> that wraps up the pulse. we will be back tomorrow. meantime, watch this. see you then.

>> this is bloomberg surveillance. at this moment continues

to collapse. the new mediocre hits of america. can america create quality jobs? once upon a time, there was a starbucks grande a. good morning everyone, this is bloomberg surveillance. we are live. head get right to our lines. keeps going. just a new three-year high today. a 12th straight day. investors encouraged i did is showing china is importing less well exporting more. do not forget, a stimulus on the top of that. west texas intermediate fell to a fresh five-year low down almost 2%. oil drillers in the u.s., for instance, increased