>> central banks take center stage. medical news from europe's policymakers. it starts now with norway. day two of airbus in london. shares continue to slide as the manufacturer considers the future of the giant's a-380. kong polys removed barricades and tents as protest leaders pledged to stay in admiralty. will they be able to?

good morning. you are watching "the pulse." i'm guy johnson. we promised breaking news from the central banks and i said it would kick off with norway. the norwegian central bank has cut its key rate by 25 basis points. that takes them to 1.25%. that is the norwegian krone versus the swedish krona. a useful pair to look at in these scenarios. as you can see, we are seeing a sharp drop as a result of the news that is emerging from norway. a central bank cut from the ritz bank. we kind of expected that we would get some news coming out, but we knew this was a possibility not fully priced into the crosses. there is one of the key crosses and it is down 1.27%. hour, we start to

get the ecb coming out with news. the bank of england will be out with a pole. we hear from carney today as well. we have the russian central bank coming out as well. the ecb news starts to kick off now. the real news is what the ecb is saying -- let me just run you through the details. low for an extended period, oil price drop might affect other components, officials unanimous to act again if necessary. acting again if necessary is a very interesting story. they had hopes that the tell tro would get them where they wanted to be. the central theme, how much that story has moved on. they haven't moved on significantly and that is what the market expects, then people are saying this could be the precursor to some form of qe.

formn't know what exactly that is going to take but we will wait. back to the norwegian story, the norwegian -- i think it has gone through nine versus the euro. i think we haven't seen that since 2009. all nines this morning when it comes to the norwegian. --'s get some details on let's get some context on all this. hans nichols is in berlin. we knew this morning was going to be busy. what can we expect? >> unfortunately, i don't have the numbers. is context. if i had the numbers, i would be locked up somewhere. here is what we are expecting on the tltro later today. the median estimate is for 148 billion. the challenge for mario draghi is, how is he going to get to one trillion? remember, the september number

is appointed. it came in at 83 billion. to recoup the cost of the previous loans, which is all the way up to 270 billion, you have to see an eye-popping number today. to behe market seems expecting, one hundred 50. anything south of 150 billion euros, that is ammunition for those folks that want to have quantitative easing faster and sooner. i noted with interest when you read the ecb decision that it was unanimous that they would act if necessary. that was the big change we got in the last meeting. we went from expected to intended. when mario draghi said he intended to bring the balance sheet up by one trillion euros, he lost three important votes. everyone has accepted the fact that the ecb can do quantitative easing without bringing the germans or the dutch along. you don't need unanimity.

>> let's talk about inflation, france, germany. the numbers.all they are disappointing as they have been for several months. they met expectations. we still have something we are waiting for, spain and italy tomorrow. the issue is, how much is the price of oil going to affect inflation numbers? it doesn't look like the final readings from germany and france that much. it is part of this multitude of data starting to build that the ecb is going to have to do something more. looking forward to that number. we get it in about an hour. anyone that has that number before hand, you call the relevant authorities and send them to jail. >> that is part of my everyday job. police when it comes to monitoring early announcements from the ecb. thanks very much indeed, hans nichols. let's get more on what happens

next with the ecb. let's go from berlin to frankfurt. senior european economist at barclays. how important is this tltro announcement? >> good morning, guy. of the key is one elements for the governing council's decision in january whether to announce additional measures and move to full-fledged qe. 's have, since the tltro been announced, the focus has shifted. initially it was to restore the bank lending channel. now i guess the focus is more on how much can the tltro contribute to this balance sheet expansion? we have believed for some time now that it will fall short. even taking into account asset purchases and covered bond programs, all this will not be sufficient to expand the ecb's balance sheet back to 2012

levels. below 180,s tltro which we think is the upper healing for today's operation, would support the case that more is needed and make it more likely that the ecb will decide to add other instruments to its asset purchase program. >> yeah. , long-term repurchase operation, was meant to public credit into the banking system and get the banking system to lend money. why is qe going to be different in its ability to incentivize growth in europe? said, the targeted learn term -- targeted long-term refinancing operations, in our view, the funding is not a big

constraint for banks at the aggregate level. its effectiveness was always questionable. qe and balance sheet expansion work through different channels. draghi has elaborated on that in his speeches. what you would get is, of course , theould get compression benchmark may even drop a bit further. you will get a further deep appreciation of the euro. an actual announcement will accelerate the depreciation trend. so the real yield in the euro area will also fall. should giveer, this somewhat of a boost to the european economy for next year. it is not going to be the silver bullet to solve all the problems of the euro area. draghi has been clear on that. what we need is structural reform, fiscal stimulus and so

on. ok, can i just talk about the in quantitative. the bank of england bought around 25% of the outstanding debt in the u.k. at the level of 2013. if the ecb was to do anything in the same size range, it would have to buy well north of the trillion we are talking about. are we still lowballing the scale needed of qe to help the european economy? >> there is also a debate theher one trillion is even amount that should be raised. i think that is a fair question. the technical modalities are under debate, obviously. there is a legal challenge pending at the european court of

justice. that should clarify some of the issues. as you may recall, when draghi announced the program in 2012, he announced unlimited intervention and restructuring of a sovereign. these are all important issues that will have a big impact not only on the size of the purchase program of the ecb but also on its effectiveness. >> there was an interesting piece this morning in the financial times. may beas this talk of using a similar model for the bank of england and using some sort of abs, asset purchase facility, that would allow may be draghi to circumnavigate political issues. do you think that would wash in the eurozone? i wouldn't exclude it, but i

think we had a similar debate at when the ecb could support such a vehicle. i think it is going to be quite tricky to do so. i don't think it is going to be a big issue for the ecb. >> ok, that's interesting. , s, always a pleasure to speak with you. we are all looking forward to this announcement. looks like it is going to be an interesting few months. it has already been a busy morning. let me run you through the details. said to's regulator is be looking into evidence that barclays and deutsche may have used algorithms to manipulate foreign exchange rates. deutsche bank and barclays were not among the six firms that agreed to pay 4.3 billion to

settle fx rigging probes. its service inse spain next week because of copyright legislation that allows publishers to charge internet companies for their content. the will take effect next month. that is the latest challenge in europe for the world's largest search engine. the european commission is investigating google for possible antitrust violations. in the next hour, the bank of england will publish its report looking into the transparency of its monetary policy committee meetings. the meetings decide benchmark interest rates. a review led by a former federal reserve official may recommend changing that. mark carney will hold a live press conference about that report at 10:00 a.m.

we are going to take that live with you. here is the question of the day, what changes would you make in the bank of england if you had the ability to reform this institution? let us know. tweet us. @guyjohnsontv. seen the norwegian bank coming through and cutting rates. we have cut by 25 basis points. that is the effect on the euro versus the norwegian krone. we will take a break. take a look at markets on the way out. equity markets look a little bit like this. the stoxx 600 is largely lower. you can see the main markets just a touch higher. keep an eye on airbus. see you in a moment. ♪

>> welcome back. let's go to hong kong where democracy protesters have locked -- blocked the street and divided the city for more than two months. police have moved in. rosalynn chen joins us live from hong kong. the details, if you will. >> it has been a long day here

in hong kong. after more than 70 days of protesters occupying this highway finally being cleared. the structures they have put up in the last 11 weeks or so. you can see behind me, they haven't quite finished the operation. there are a couple pockets of protesters, some actual hong kong lawmakers have been staging a sit in and refusing to leave. they are being arrested and taken away one by one. that is a slow process but you can also see behind me here, there are quite a few dump trucks picking up the garbage and other things the protesters have left behind. it is largely peaceful. they haven't really met with any violent confrontations or anything like that between protesters and police so far. metesters have been telling

that although their physical presence is no longer here, they hope that it has awoken the interest in some young people and politicians in hong kong in much the same way that perhaps the scottish referendum did. young people often not interested in engaging in politics, they were some of the people driving this pro-democracy campaign in hong kong. futurepe now that in the the younger generation can push things forward. >> thank you very much indeed. the latest from hong kong from rosalynn chen. let's go from what is happening in hong kong to the m&a story. telecoms very much back in the news this morning. arefonica and claro planning to make an offer for brazil's second-largest company. the offer would value the company at around $15 billion.

caroline hyde joins us with more. this feels like a soap opera. >> another day, another deal. more people getting in on the act. there are four players in brazil. everyone needs consolidation. the market is too competitive. brazil used to be hot and expanding its market, but perhaps those heights are starting to cool down a bit. meanwhile, the government wants them to pile billions into investing. four should become three. three players are going to chop one into bits. tim is the one you talked about. $50 million, that is a 40% premium they are offering the owner who happens to be telecom italia. , claro,fonica are clubbing together to form a group. -- they willer offer $15 billion and oi will

take 25%. the rest will be left up to claro and telefonica. this is the way they are forming. they are going towards trying to take tim and/it apart -- and slash it apart. they already got the go-ahead from their board. tim is allowed to cuddle up to oi, see if there is any matchmaking. now they are being put forward a $15 billion offer. that is nowhere near what telecom italia wants to see. they said, we value it $25 billion. there has to be some hard negotiating. not only does telecom italia , thethe idea of offloading three players who want in have all said they very much want to play a big role in the consolidation of brazil. it is a huge, growing market.

there is probably room to be negotiated. >> just got to get the price right. caroline, thank you very much indeed. coming up, repairing the relationship. can jean-claude juncker and his you k's reboot the unhappy partnership with the eu? we are going to speak to the woman who many people say has the toughest job in the u.k. eu'ss the head of the representation to the u.k. she is joining us very shortly. ♪

>> welcome back. you are watching "the pulse." we are live on bloomberg tv, on the radio, streaming on your tablet, on your phone, and on bloomberg.com. thursday night means one thing for european basketball fans, match night. maccabi tel aviv are aiming for their seventh title. we are seeing the first euro league club to make it big in america. elliott gotkine has more. night in tel aviv. maccabi is up against moscow, seeking to retain basketballs championship league. it is also taking a shot at a more lucrative prize, the united states. >> they have the pom-poms, they have the pose as, and at least over here, they have the pedigree.

conquering america, that is a whole different ballgame. the strategy is simple. u.s. plan to enter the through tv rights and gain more tv coverage. we will have more games played against nba teams. we also expect to have maccabi basketball in the u.s. and israel. and of course merchandise. >> it helps that the coach of lebron dreams -- lebron james used to be on maccabi. that may not be enough. >> the united states, north america, are built around a love of celebrities. david stern figured that out when he was running the nba. he got magic johnson, larry bird, michael jordan, really hotwired for the u.s. audience. maccabi tel aviv is coming in without any star players. >> that could be a problem. maccabi tel aviv makes around

$20 million a year, the same as lebron's wages. its overseas appeal may wane. players' preseason nba roves they can make it in america. >> it was probably a sellout crowd. >> the college atmosphere is more like european. the fans really support their teams. i feel like maccabi can have that in the states. >> for now, u.s. basketball fans are more likely to come across maccabi on the xbox, where it is one of several euro league teams taking on the best of the nba. elliott gotkine, bloomberg, tel aviv. >> basketball with elliott kotkin. coming up, will airbus ditch its a-380? we are going to look at why this oem may not break even for this

aircraft in 2018. it was a big bet. let me show you the markets as we head into break. ♪

>> welcome back. you are watching "the pulse." these are the bloomberg top headlines. two months of pro-democracy protests in hong kong appear to be coming to an end. police have removed barricades and torn down tents. student leaders have vowed to stay until they are arrested. the protests began 11 weeks ago when china decided it would control the nomination process of the first leadership election in 2017. the russian president is in india today, due to meet

with india's prime minister. the trip is the latest leg of the russian leader's tour aimed at strengthening trade and political alliances. back in moscow, russia's central bank will release an interest decision shortly. the bank is expected to raise interest rates quite significantly. new york regulator benjamin lockey is said to be looking into evidence that barclays and deutsche bank may have used algorithms to manipulate foreign exchange rates. deutsche and barclays were not among the six institutions that agreed to pay $4.3 billion to settle ethics probes -- fx probes into the rigging of markets. airbus has been facing some big lows. profitpany announced a

warning yesterday and now it is weighing the possibility of ditching its superjumbo, the a-380. glen campbell joins us from berlin. good morning to you. think, caught a lot of people by surprise in terms of the warning that we got. >> that is correct. yesterday was a tough day for airbus. the stock slipped 12%, the biggest drop in six years. it started in the afternoon, even before that profit warning that you mentioned. airbus said that it would not deliver its a-350 wide-body jet to guitar -- to qatar. sitting on theis tarmac, ready to be handed over. the ceo ofll be that qatar just wants to get some more concessions out of airbus.

investorsy caught surprised and the stock started sliding at that moment. then we had the profit warning. they said 2016 earnings will be stable rather than grow. that one really spooked investors and the stock started falling then. to top things off, they said the a-380 might not survive beyond 2018. that would be a little over a decade after it started its commercial debut. they want to break even with the product next year. beyond that, there are very big question marks about the product. >> benedict, we were just talking about the a-380. let me read you what we've got. where is the problem with the a-380? i don't know whether that is aimed at john leahy or not. yearn break even on 30 a or more.

a neil version and a stretch version. the 380 program is under control. no urgency on the upgrade. the program will progress. that sounds like every spur j, the boss of airbus, thinking the superjumbo has a future. might be backpedaling a bit from yesterday when the cfo of airbus said that discontinuing might be one option. that obviously spooked people. arguably, the best way to kill the commercial products -- commercial prospects of any product is to tell potential customers you might not be making it. this is a product that needs a lot of confidence from a prospective buyer. you want to feel confident that you can fill this plane, but also that you have the service from airbus and the commitment this is a plane for a buying this is a plane that you

are buying for 30 years. they probably won't have customers rushing to the plane anytime soon. >> tim clark at emirates once a stretch and a neo-. do you think he is the only customer for this aircraft? there are others but he is the main one. does, what tim clark once, tim clark gets? overat might be a little optimistic. airbus has said their upper tight -- appetite for a stretch or neo option is limited at this point. remember, these are planes that are sold in the hundreds, if not thousands. there is a huge market out there. it is far more difficult to do this for a plane that has only sold 300. you would have to convince and united and ge technologies that they should be on board for this. that is going to be very difficult to do.

rolls-royce might not have the appetite. >> benedict, thank you very much. bloomberg's european aviation and defense lead reporter. let's go from aviation to attack. another setback for google in europe as regulators focus on its business in spain. it is related to google news. here with more is caroline hyde. they are shutting the new site down in spain. why? >> a new law has been passed in spain that publishers can charge news aggregators such as google. google goes as far to say that they have to charge aggregators such as google if they reproduce their own content. news, which is currently in seven international editions, 35 different languages, are going to shut google news in spain. google executives met with

spanish officials because they knew this law was being debated. they said, if it passes, we are going to shut it down. they stood by their word. they are going to exit this business. it is no longer going to be available in spain. the head of google news putting that out on the blog. >> so what is the future story here? google are reacting, saying they've got to do this, saying they will probably review it area but what happens next? >> i think they are trying to put out fires. they put out -- there is an interesting blog that the head of google news has written. he pulls on the heartstrings here, trying to make out, we are the good guys. a reminder that google news was born after september 11. to put news at our fingertips.

big, international newspapers, but the local news, the bloggers. they are trying to say, we bring money to publishers. the internet has created great challenges, but not google. by having the google news service, we will highlight your work and bring you more advertising, more money, more revenue. they point out that google news brings in no money for google. there is no advertising. they are trying to put down the fire already. they can see the smoke billowing in spain. once again, this is europe. the regulators really clamping down on google. it must be relatively terrifying. >> you get it in different countries, that is probably the issue. , you getne story multiple stories. tobecause of google, we get know about things that happen in

spain and maybe france. germany, axel springer has been quite critical of google. they could be the next big publisher. >> caroline, thank you very much indeed. a bit of breaking news. smbe got the head of the speaking. let me show you what is happening with euro-swiss, with the main crosses. what he is saying is that the smb will enforce the cap at all times. this is designed to keep the swiss franc from appreciating too fast. he is also intimating that there are a range of other possible measures of the smb that could include to maintain policy. one of those includes negative rates. this is what has been happening this morning with the euro versus the swiss franc. we have been through 1.20.

if you look at it the other way around, you get a very interesting story. we are going through key levels at the moment. what we are seeing is the smb taking a hard line. more on that coming up a little bit later on. some say she has the toughest job in britain. we are going to talk to the european commission's representative in london. will the relationship last? we will ask that question. check out the ruble, it fell --ow 55 chevelle the dollar 55 to the dollar this morning. we will get the next rate out at 10:30 u.k. time. expecting a big announcement from that central-bank later on this morning. ♪

>> welcome back. you are watching "the pulse." the u.k.'s unhappy relationship with the eu is our next subject. appears to be heading in opposite directions and the british prime minister takes a's tough stance on , we are just a smoother relationship. joining us to discuss these challenges, jacqueline minor. good morning. i read somewhere this morning that you are the woman with the toughest job in britain right now. that is probably an

overstatement of the situation. but is it a tough gig you've got in london? think it is probably easier than some of my colleagues think it might be. , i find it-day basis fascinating, interesting, challenging. occasionally discouraging. lots of people i meet every day have much tougher jobs. >> what is interesting, what is challenging, and what is dispiriting? >> what is interesting is the level of debate. the focus on britain's relationship with the european union has meant there is constant discussion, debate, meetings with people who want to find out more. well-informedvery informed, some very expert people. what is challenging is trying to convey some of the messages to theuropean policy public in this country.

last point, do you think the british people are being given the information they need to be able to make a rational decision about our relationship with the eu? there is a lot of hyperbole. draggedwant you to get into talking about that, but facts are important. in the scottish referendum, facts became only important at the last minute. there was a lot of sound and fury before that but when we got to the facts, people made a different decision. are we in a world where being correctly informed? the scottish referendum is very instructive. orthe end, in the last two three months, the people voting in that referendum wanted to tease out the issues, how it would affect them, their pensions, their savings, what the impact on employment might be.

i suspect that if we have a referendum in 2017, there will ,e a similar demand for facts information, understanding of the issues. i think we are beginning to see that already. there is more information in the public domain. a balance of confidence is exercised, which has gathered enormous evidence. various academic institutions and bodies collecting evidence on the impact of foreign direct investment, the impact of trade with the european union, but also the world, and the impact of inward migration. information, you think, is being disseminated broadly enough? will write the

stories they choose to write. >> do you think that information will come out? >> i think it will. if we have a referendum, then people, i think, will decide partly in terms of their feelings -- and that is important in this debate. ofscotland, feelings historical and cultural heritage . in the european debate, those feelings of belonging to a european continent are not as strong's as the feeling of belonging to a united kingdom. increasingly, there was this concern about, how would i be affected? would it make it less likely for my children to get a decent job?

would my pension be secure? what would happen to infrastructure? >> all the things that are real in people's lives. do you think business in britain is playing a strong enough role in the debate that is beginning to gather momentum? has been playing a stronger role over the last 12 months. we have seen surveys from the cpi, from the federation of small business, all of which make it clear thatthe -- that their members support continued membership of the european union. , but theyant changes think the balance of membership is positive for the united kingdom. you've also had ceo's of some rather big companies talking about their wish to see the united kingdom remain in the

european union. >> this is from the other end of the telescope. may be case of the extra british contribution is a useful way of looking at this. you talk about your colleagues in brussels. do you think there is an understanding of the debate that is happening here? >> i think that is a very good question. until recentlyat there has been a real understanding. i think for most of my colleagues in brussels, and probably officials throughout the member states of the european union, it has been almost unthinkable a member state would seriously consider withdrawing. i think that is changing. they understand that there is a real debate here. -- some the possibility

commentators, i think john major said, it would be 50-50. there may be a referendum and the referendum may be a vote in favor of withdrawal. this is something that has to be taken very seriously. changewe going to see a in attitude, i thinking communication, a change in policy? ask a change in policy, not very much. policy, many of the things the united kingdom would like to see changed are changing. in his push for a transatlantic with the usa, a big things, smaller on the small things. pushing for a conclusion that

evening -- a deepening of the market. in terms of communication, i think it is important we try and make clear that many of the things the united kingdom is seeking to achieve are part of a shared agenda, an agenda which is shared by the commission. also, most of the other member states want the same thing. it is not one against 27. it is 28 pushing in the same direction. >> let's hope so. thank you very much indeed, jacqueline minor. we are going to take a break. see you in a couple of minutes. ♪

>> welcome back. the bahamas plans to cut fuel imports by as much as 5% as richard branson's caribbean clean energy initiative. build solarplans to fields. the agreement comes as the to cutent overhauls dependence on imported diesel feel. the sun does shine there. the u.k. energy secretary has called for a debate on forcing companies to disclose their

exposure to fossil fuels. he says investors need to know the risks they take as he transitions to a low carbon economy. the comments were made to investors in peru. he says there is a case for making disclosure mandatory in the u.k. right, we are waiting for news. heaven or mark carney and kevin reveal a review of how the bank handles its monetary policy committee meetings. jon ferro is here. what are we expecting? >> the report from walsh and whether or not carney listens to it. the federaljapan, reserve, they have these behind the door meetings. at some point in the future, you will get the transcripts from those meetings. what does the bank of england do with them? they burn them. central banking is taking on much more importance over the last five years.

it means we want more transparency. these guys are behind closed doors making big decisions. arguably, mark carney has a more influential job then the exchequer, george osborne. >> if you want a healthy and open debate, do you need to do it behind closed doors? >> that is a question worth having. that is why they didn't have minutes. globalssure on all central banks is to be more transparent. you've got to insulate these guys from public pressure. when they are out there giving speech after speech, you get a good idea for where they stand anyway. >> is that enough transparency? >> possibly. >> i'm just throwing it out there. say, youalso got to look at the minutes from the bank of england, they are kind of water down compared to federal reserve minutes. does it matter if these get released?

>> probably not. we will find out very shortly. thank you very much indeed. , when we comes back, we will bring you mr. walsh's reports from the bank of england. ♪

>> central banks take center stage. we will see critical news from europe's biggest policy makers. reviving the ruble, russia's central bank is expected to raise rates to help stop the country's currency slide. and it's day two of airbus in london. shares continue to slide as the plane maker tries to calm nerves overpb the future of its giant a-380. >> good morning to our viewers in europe. good evening to those in asia. a very warm welcome to those of

you baking up in the united states. the b.o.e. will seek to cut to 2016 and publish minutes alongside the decisions from august 2015, and it's going to publish minutes, i just read that, and it's going to reduce the number of meetings. jenny scott is just running through the details of the press conference that is about to take place, introducing those involved. clearly you know the man to her right. he wants the governor of the bank of england, mark carney. this is mr. walsh, the man who has concluded his report am let's listen to what he thooze say. >> we've all come a long way from the never explained, never excused central banking. as you know, the past two decades have witnessed a regime change in the way central banks interface with the outside world. for the modern central bank, transparency is the watch word. the bank of england, like many of its peers around the world, finds itself giving considerable thought to the

ways that explains itself to its parliament, the financial markets, and not least the citizens whose lives are affected by the poflse. the governor and his colleagues commissioned me to undertake an independent review of the transparency practices here at the bank. i was asked to consider the measure its and demerits of creating, retaining, and ultimately publishing transcripts of monthly m.p.c. meetings. the transcripts should not be the soul or perhaps even predominant measure of transparency. i was zod reflect more broad on the transparency practices here at the bank. could the bank do more to advance the cause of openness and accountability? to accomplish this task, i consulted widely. i conducted interviews with all current members of the m.p.c., along with many who served in years past. i listened to actual recordings

of selected m.p.c. meetings. i spoke to central bankers past and present. and i spoke to a range of officials, both from this country and abroad. i considered thoughts and analysis from the academic literature in fields as wide ranging as economics and organizational theory. in work wag dedicated staff here at the bank, i conducted independent research into transparency practices of central banks. the peer review was a useful means of evaluating transparency initiatives currently being practiced. i was curious to see the bank ranked by objective measures on various transparency tales. and the truth is it ranked well. but the most transparent central bank does not necessarily merit the gold medal. that distinction is owed to the central bank that most effectively uses transparency to achieve its broader

objectives. trance parns a is not a virtue in and of itself, it's a virtue for what it can do. so the review seeks to put transparency to good use in service to important bank objectives. these objectives, which i describe as the big four, are as follows. first to make sound policy decisions. second to communicate effectively. such that the signal is heard through the noise. third, to be accountable, so as to overcome any democratic deficit common to central banks. and fourth, to establish a despair accurate historical record for economic history may teach us at least as much as economic theory about the practice of policy. so it's in this broad context that they identify five fundamental reforms to

strengthen the bank in pursuit of its objectives. allow me to list them briefly. first, public had she a policy assessment and rationale as soon as is practicable upon the policy decision being made. the bank is now alone among its peer group of central banks and not routinely providing a contemporary rationale. it is also my judgment that the m.p.c.'s meeting schedule is inconsistent with best practice. real transparency doesn't always mean more, but it should always mean better. so there is a strong case for reducing the number of meetings from 12 a year to eight. rarely would a single full week period be optimal to revise an economic assessment. second recommendation, enhance the minutes. the m.p.c. minutes as they are compare well to their peers, but the crux of the

deliberation should be expanded in the minutes. that way businesses, households and investors can gain a better sense of the key judgments with which the m.p.c. is wrestling. third recommendation, published transcripts of discussions that currently take place on day two of the two-day policy meeting, that is the day when decisions on the stamps of policy are determined. a deferral period for publishing these transcripts of between five and 10 years is reasonable. the review seeks to preserve a crucial element of robust decision making, and that is genuine deliberation. ensuring a safe space for general russian deliberation is among the most indication of successful, long-lives organizations. the reform package would allow the m.p.c. to bolster its trance pearns a and the

accountability of its decisions without jeopardizing its ability to make sound policy. fourth recommendation, publish the same deferral period as with the transcripts, the key materials from staff that informed the m.p.c.'s discussions during its two-day meeting. and finally, fifth, strengthen the bank's secretariat procedures so that future historians can better assess the judgment of policy makers today o. barbling i hope the framing and these recommendations prove to be a worthy input to the ultimate judgments that the bank and its stakeholders will have to make. thank you. >> thank you very much, kevin. will the me start by stating the obvious, that the bavepk england now had immense responsibilities for monetary stability, financial stability, and micro rehaitian. with these responsibilities comes the need for effective

transparency, genuine accountability and robust governance. the strategic plan that we launched this past march established openness and accountability as a core pillar of our mission to promote the good of the people of the united kingdom. so today we're pleased to announce a series of changes that will enhance our transparency, reinforce our accountability, and improve our overnance. since the policy was formed in 1997. and second alongside those measures, we're also proposing a number of additional changes to the way the bank is governed. the combination of these will mark a step change in how this institution is run. they'll enhance our transparency and make us more accountable to the british people. want to thank the governor for his review of policy over the past six months, make clear that the bank is accepting all of his recommendations.

i asked the governor to undertake this review after a single question from the chair of the treasury committee six months ago. the question was, what do we do with the recordings of the m.p.c. meeting, was it was a small question, but important, important because decisions that we make on the m.w.c. affect the lives of everyone in this country, and that puts an enormous responsibility on m.p.c. members to account for those decisions and to make them in the most transparent way possible. today we're proposing a number of changes tone hans that process, and let me highlight a few. first, as recommended by governor, the m.p.c. will publish full written transcripts of the meeting at which policy is decided after a period of eight years. this is consistent with the review, and we believe it strikes the right balance between the need give members space, to deliberate, and our intention to enhance accountability and transparency. these new arrangements will

take effect in march of next year. second, the review recommends the m.p.c. publish a detailed policy statement as soon as is practicable following each policy meeting. the m.p.c. agrees this would improve his accountability, but we believe there's scope to go further. so we're announcing today our intention to publish both the minutes of our policy discussions and in the relevant months, the inflation reports at the same time as our policy decision. by removing the present news, in other words, the policy decisions and the inflation report and then the minutes, in favor of a single monetary announcement, we believe these arrangements will enhance the effectiveness of our monetary policy communications, making the policy signals we send as clear as possible. we intend to move to this frame

work with the august inflation report next year. third, we're also reminded to move to eight policy makers a year rather than the present 12. that pat certain already adopted in other central banks, and it was recommended by every review of the process, including the treasury committee's 2007 report, the m.p.c., 10 years on. it will require a change, as will some of the other proposals that we're making today to governance. finally, what we intend to do is to hold four scheduled joint meetings of the m.p.c. and the ad c. in 2016, as well as hoc meetings next year. this will help ensthure policy making is joined up across these two major policy committees of the bank. the fact is our broad range of responsibility creates the potential to exploit synergies between them, and the

effectiveness of each function influences that of the others. be joint analysis will help us maximize our impact by working together to meet the challenges we face in maintaining monetary and financial stability. the two other major changes we're announcing today concern the transparency of court itself. the first is that we will bring publication of historical court minutes within our new archive policy, under which minutes will be released after a period of 20 years. that allianz the bank's archive approach with best practice in white hall, and it means that during 2015 the bank will publish the minutes of court meetings held between 1914 and 1987. second, in january, the bank also intends to make a special release of the minutes of court and related meetings during the crisis period of 2007-2009 as requested by the treasury committee. in combination with the recent

winterings in stockton review, this will provide a complete record of the bank's activities during the crisis. our final proposals concern the structure of the bank. we noticed a simpler structure for the bodies and a clearer commitment to accountability. that's what we tried to achieve in this n these proposals which are made with the new institutional structure of the bank. they seek to reinforce the intent of existing legislation and make the bank as effective as possible in delivering the responsibilities given to it by arliament. this is easily addressed by a simple guiding principle, which makes clear a distinction between, on the one hand, the bank as a corporation, governed by a court of directors which oversee strategy, finance, risk, staffing and budget, like any other organization.

and on the on the other hand, the bank's three policy authorities, the m.p.c., the f.p.c., and the p.r.a. board, each acting under a separate statutory mandate. from this police pell, two sets of changes flow. first, we should align the status of the f.p.c., the p.r.a. board with the tried and tested model of the m.p.c., governance of the corporation should be reserved for the court. and second the court should be an unambiguously unitary board with executives and nonexecutives working together. that means absorbing the nonexecutive oversight committee into court. these changes are closely in line with the proposals made by the treasury committee in its 2011 report, the knowing act of the bank of england. to conclude, taken together, these changes to our monetary policy sandross our governance

and transparency arrangements are intended to put the bank at the forefront of international best practice. they will strengthen the ability of parliament and the public to hold us to account for actions, and most fundamentally, they will enhance our ability to promote the good of the people of the united kingdom by maintaining monetary and financial stability. >> film bloomberg news. can you talk about the costs of meeting on a less frequent basis? will this impede your ability to act in a timely fashion if need be? and then also work it put a little bit more weight on people to act at a meeting when they knew there would be more of a lag? >> well, first thing is that we have the ability, and we will retain the ability to meet at any time.

we could have a meeting this afternoon and that would still be the case if we put these changes into effect, if the bank of england were to change. there are exceptional circumstances where that would be appropriate. so that's the first point. the absolute flexibility exists today and would continue to exist, and that's true. as the governor has indicated in his opening remarks and his report, it's seldom the case that in a given four-week period there's a material enough set of information or changs to the economic outlook or a change in policy. it makes sense to have a greater lag. if you look at the history of the m.p.c. prior to the crisis, prior to the crisis, on average, action happened four times a year. so even with eight meetings, you have some built-in redundancy. one of the advantages of moving

to eight meetings a year, a cycle which would have four inflation reports and then a meeting in between inflation reports right in the middle of the time line is it's an ability to do a stock take relative to the forecast. &provide perspective if policy action were warranted, and i would remind, policy acts, deciding not to change policies is also a decision as well, and i can reinforce the point that comes through clearly in the report and which we wholly endorse is that when we decide not to change policy, not to raise interest rates, not to change the asset purchase facility, there is merit in providing a full and immediate account for why we did so, and that's what we're moving towards, by bringing the minutes to be published at the exact same time as we make a ecision.

>> you draw a distinction between day one and day two on the transcript, only the transcripts from day two should be published sthasm a distinction that other banks make? and following on from that, once these reforms are made, is the bank of england going to be, in your view, the most transparent central bank in the world or will there be others which are still ahead? >> in response to your first question, knowing it's property to note the federal reserve and the bank of japan are the only central bank out of a peer group of nine or 10 institutions that already in this business of providing transcripts. the changes, if adopted by the bank of england today, would put the bank of england in that very top tier of providing transcripts at all. in terms of the distinction itself, i would say the distinction that's being made both in my review and according to the bank of england in their acceptance of it is pretty

important in conduct to making policy, the distinction between deliberations and decisions. the deliberations that happen on day one of the m.p.c. meetings are, to be frank, quite impressive. it shows a willingness to play devil's advocate, to interrupt one's colleague and ask a follow-up question, and in some sense, the institutional design here of the bank of england with relatively fewer members in comparison to the fed, with a more intimate surrounding encourages that kind of robust deliberation, which i think is essential to making good public policy. if tourp compare that to the federal reserving the institutional design and background of the fed is quite different. we have 19 people that sit around the table. we have a room filled with about 60 people, which would depire something like nine decision makers here and 15 or 16 all told in the room. and so i would say that the deliberations, which i answered on day one of these decisions

of these meetings here are really stoked none, and that is a essential asset that struck me was worth preserving in the context of policy. and so that's the reason for the decision. if tourp read the transcripts themselves, you would also see two policy go-rounds. in theory, similar to whashdaup i'm going break in to the governor there and bring you the details of the second targeted loan offer for banks within the eurozone. it's come through just shy of 130 billion. i would argue that's probably bang in the middle of the range anticipated by the market and to drive not enough to the e.c.b. balance sheet toward the intended target of around a trillion euro. i'm looking for a bit of reaction on euro-dollar. we are fading now to the lows

124. session, trading at 23. let's get instant analysis. >> we had a range of 90 to 250 billion euros for this auction. we've come in at 130. it's better than that ugly september auction of 82.6 billion. is it good enough for those on the e.c.b.? if you look at the balance sheet right now, and i looked at that time before i came on, i looked it over five years and then over 12 months, we're just bounce ago long at the bottom at the moment. the e.c.b. is treading water. the money that's being paid, the same amount is coming back out. we're treading water. that's the debate that's been had right now. >> this is only going to further convince the market we are ultimately at the beginning of next year, and the bulletin we have from the bank this morning making reference to key decisions to be made over 2015. >> serve talking about 2015. everybody is talking about q-1. serve talking about that meeting at the end of january.

mario draghi stepped up in the q&a meeting last week, and we talked about the paragraph, the quote would be illegal not to follow our mandate. you know the mandate. >> in the distance, it's on the horizon. >> it's close to 2%, whatever that means. we're at .3% right now, way, way off. clearly they've got to act. he was also very keen to say that purchasing debt is also within the mandate. >> yeah. it will be interesting to see what vehicle they use to decide to do that. what is interesting, we are getting a little bit of a reaction, so 10-year italian bonds expanding their advances after news of the details. the expectations there clearly from the market is that there will be a new buyer in the market at the beginning of next year that will be buying, and that is in the form of mario draghi. >> record low. >> yeah, precisely. i think it's hard to see a

massive move being generate by this piece of news. bonds have already been staggering towards lower and lower levels over the last few days. so a little bit of spread compression once again. at spread compression story, just how low can you employ? >> should we get to the disappointing stuff for the central bank out there? >> ok. >> eight meetings, eight meetings, ok, it needs parliament approval. it needs parliament approval, but bank of england looking to cut the meetings down to eight. >> this is a double whammy for you, isn't it? not only do we have the bank of england going to eight meetings, we're now going a lower level of e.c.b. meetings. >> guy, the talk of publishing the minutes alongside the meeting i found very sbfplg the current lag right now is two weeks. as you said, you joked, but it's serious, you need someone to write pretty quickly. on top of that, they want to win half the minutes, because if you compare them released

from the fed to the once released to the bank of england, it's very watered down, probably not a paragraph worth reading. enhance them, release them quicker. >> as they continue, we're continuing to ask questions, so we're still getting more details and fleshing out exactly what's going to happen. i guess there's another way of looking at it, we may just see a delay in the publication of the news, the decision, and we may get it all maybe later in the afternoon or maybe the meeting breaks a little bit earlier. nevertheless, that's going to be a very different occasion, because previously what you've had is a couple of bullet points and a decision, and you've been able to make decisions based on that. now what you're going to have to do is get the decision, get bullet points, and then there's going to be the transcript n. transcript, there's going to be a lot of nuance. and you're going to have to digest the details of that nuance before you can actually make a actual informed decision

about what the rate path is and whether or not this ultimately changed. >> what was also interesting was the question our colleague put to governor carney. what does it this mean for the decision making? talk right now, if you look at the federal reserve, who have already got eight a year, people start to change their predictions, their forecast on when the rates will go based on the meetings and based on the meetings that have a press onference as well. >> all sftsdz in the desire to increase transparency. >> absolutely. there's something there for historical trance pearns a. for the historians, i'm sure they're very pleased. >> governor walsh talks about the fact this puts the bank of england in the upper echelon of its peer group. i think still people struggle with the idea of how to understand policy and fed sandofle wrist taking us. they struggle maybe a little less to understand where the b.o.j. is going. but it's not as if we're not

going to be in a world where we still find it difficult to understand the direction. >> let's be brutally honest. >> the environment is so difficult. >> let's be honest here. the last 18 moss, the communication coming out of the bank of england, they've been confusing to say the least. you see one thing come out, another thing come out of -- another thing come out of a statement or a speech from governor carney. it's been confusing to be kind. >> yeah, but i think that's generated by the environment in which we find ourselves. if you think about 2015, it's not as if we're suddenly going to be bathesed in the warm light of understanding. they are as dependent as everybody else, the data is going to be incredibly confusing. they, as everybody else, are going to be a little bit reactive. they're going to try to look through that a little bit, but nevertheless, there is still going to be a very bumpy ride ahead. >> long way to go for the e.c.b. central bank news continues after the break. we are expecting a significant

move from the russian central bank, the ruble has been punished of late. there is a desire maybe to deal with the pace of that. we'll bring you the news when we come back. ♪

>> good morning. welcome bask you're watching "the pulse." we are live from bloomberg's european headquarters in london. i'm guy johnson. what we're waiting for now is the central bank rate decision from moscow. we have had a lot of russian news this morning. vladimir putin is in india. following up a few must not ago, he concluded a press conference, and he's been trying to develop relationships around the world, and we've seen that of late with turkey. we have now got the central

bank raising rates. the rates have now been moved to 10.5%. the news coming out from russia, central bank, as anticipated, hiking rates. what does this do to the overall landscape for russia, and what does it do to change the ruble? et's find out. 0.5%, how does that change the game? does it? is it enough? will they have to do more? >> i think the central bank had to give something to the market. there wasn't a significant market pressure for hiking rates. and we will have to see. it's enough, is this enough to stabilize the currency? >> would your expectation be no when it comes to that question? the market was actually looking for a little bit more.

>> yes, the market was looking for 150 basis points, 200 basis points. there might be some renewed selling pressure on the ruble, but it's also important to wait on the comments of central bank later on, so there might come some additional measures left or ethics intervention in the market to stabilize the currency. >> to a certain degree, russia needs a weaker ruble. the real question is how fast that happens. >> yes, it's the speed of decline the central bank is concerned about. ussia has an incentive for appreciating currency, because oil prices are dropping. a lot of currency is offsetting dropping oil prices, and it's just the speed of decline which is creating significant stress in the financial markets. in russia we saw panic in the markets recently. so it's a pan being in the

market. it's financial stability the central bank is concerned about and the decline of the russian ruble. the bank is saying that, and i guess these are her words, will continue to raise rates. more rate hikes if c.p.i. accelerates. would you expect, and given the currency, it's a mechanical story, would you expect it to continue to is being alley rate? >> i expect it to accelerate. we're at 9.1%, and a number now, it's probably fastly going above 10%, probably heading towards 11 in 2015, towards the summer of 2015. so that significant pressure on prices in russia, so the central bank might further react to this, but it's specially, like i said, it's a financial stability that the central bank is concerned about. >> we talk about the rate change when it comes to the decline in the value of the currency.

we're down 1.1%. we're at a record 455 verse the dollar as you and i are talking right now. how much lower does it go than now? let's talk about the absolute levels. do we move it even further? possible. 5760 is >> is it 57260? >> usually 57. but 60 is basically the next evel market. 60 is the next level i would be looking at. it also depends on the decline of oil prices. i think it's against the dollar. what does this mean for other ssets, do you think?

i think the stress will continue. we saw a panic in the rates and markets. we saw the one year cross currency cooperate heading to what 20 recently. it now has come down to 14. the stress will continue, and the central bank has to come into the market with additional measures. these are ethics interventions, and knowing they will intervene once we head towards a 60 in the ruble and also a liquidity as i mentioned will be on the cards for the central bank. >> what are the implications of this? >> i think putin mentioned they're going to sign speck letters, so the central bank is also -- under pressure to do something. it means, what does it mean? that's a good question. putin mention it had a couple of times, but the ruble continues to decline. i think they just want to intervene verbally for the ruble and also the central

bank, like i said, is under pressure because the government doesn't want the population to be too concerned about the falling ruble. there's some concern in russia coming up amongst a lot of people and cooperations that the people are moving too fast. we saw some news recent that will some corporations seem to be in stress. there's concern in russia about the steepness of the decline. >> you're tightening into a recession. there are reasons why you're tightening into a recession. what impact is monetary policy going to have on the real economy? they're trying to deal with the ruble, but there are second-round effects that come off that. what do you think it means in erms of g.d.p. growth? they have to hike rates, at the

same time the interest is continuing. vureb in a very difficult situation with sanctions on one side, oil prices dropping, so they face pressure from two sides at the same time. the economy is slipping into recession. central bank has to hike rates in order to support the ruble. it's not an easy decision to be made here for the central bank. >> what does this mean for entral and eastern europe? twenk has negative impact on other countries, especially with russia, which are negatively in terms of g.d.p. growth. still we believe it's growing, obviously around 3% in 2015. also hungary has some strong growth momentum due to domestic demand. but generally speaking,

implications are negative for eastern europe. >> just the final question, where does this end? where does this lead us to? we're vutch caught up in the moment right now. we're watching the central bank hiking rates, watching the ruble come under severe strain, watching the economy grind to zero. what's the end game? >> there has to be some solution -- >> this is what we're going back to, yeah. >> that's the main part behind sanctions, behind distress of the russian economy, apart from the declining oil price. >> i was going to say, is that true? you've got two different situations here, both which of are coming together to create prices, which is why i was going ask the next question, which is more important? ukraine clearly critical. sanctions having an effect. but the oil prices are by far greater impact on russia's

ability to finance itself. it has a much bigger impact on russia, but at the same time we think that sanctions are just starting to bite into the economy right now. we see a much bigger impact of sanctions coming in, so obviously the oil price is much more important, but i think that's pressure on the vernment, a situation in ukraine. ? think that's hopefully mindset they have to come some solution. i think they're very stubborn at the moment, but -- >> yeah. >> have to be tearful what you say. but i think there needs to be some solution to the ukraine conflict, and things then hopefully turn around, also for the russia economy. >> we'll leave it there. thanks for your analysis.

bernd berg, right, let me walk you through the top headlines. it has been a busy morning to say the least. two months after protests in hong kong, they appear to be coming to an end now. police torn down tents around the site. student leaders are vowing to stay until they're arrested. the protests began 11 weeks ago when china decided it would control the nomination process of the city's first leadership election in 2017. that's the big news coming out of asia overnight. we're going to take a break. we're continue our analysis, all the central bank news, plus all the key stories in the world of business. we're going to talk about soda stream. we'll do that when we come back. ♪

>> welcome back. you're watching "the pulse." it's the stock slide that even scarlett johan son can't stop. we've been watching it with a great deal of interest. there's the video that made this firm even more famous than maybe it had intended. we're back at i.p.o. levels we were at four years ago. the stock is down on slumping profit. let's go to tel aviv. let's go to elliot got kin and get the latest. elliott? >> thanks, guy. i'm joined by the soda stream c.e.o. daniel, great to have you here live with us. it's been' tough year for you to say the least.

the shares are now down at the same price you had your initial public offering some four years ago. how are you going to regain the confidence? >> we announced a plan where we're completely changing our strategic approach to the market, financed mentally, we are transforming from being a soda alternative, so a different way to do soak and pepsi, to a company that provides ways for consumers to hydrate healthy. we call it water made exciting. we are a water company now. we have every license to do that by the way, because we do make water exciting, and america wants to drink more water. they do. they're not drinking enough. we research to substantiate that folks who have a soda streak at home do drink more water. three cups a day more of it. it's very exciting for us. that's what we're bringing to the american consumer now. >> how is this new strategy panning out? do you have any feedback? is it feeding into stronger

growth, stronger sales, for example? we're in the early stages of the product. we already have six water-flavored in the united states. they're available only at bed bath & beyond right now. we're at the early stages. we need a few quarters, well into 2015, to see that this strategy is really taking ground. i can tell you that already 68% of soda stream sales are towards making water, sparkling water. this is what the consumer wants. >> as part of your growth plan, you are closing down the fact refresh my recollection the one that caused so much ontroversy, of course. has have people already losing their jobs? >> we're relocating the factory to a different one. >> this particular fact will i will be closed. >> we're offering all the employees there, including the palestinians, continuity of employment to the new factory. >> that's not up to you, is it? you need to get permission from the israeli government and presumably getting employees

permits to work inside israel. it will be like butting heads. >> we do the impossible. we're leading a revolution in beverage towards healthy hydration. we're also leading a revolution in enabling people to prove that enemies can work together, that arabs and jews and israelis and palestinians can actually live and work together. we're doing that in this factory. we want to continue doing that in the new factory, in the southern part of israel, in israel proper, and it is going to be a difficult process. we're working with the israeli government. i hop they'll cooperate, but let me tell enthuse, elliot f. we get a minister from the palestinian authority and say, put politics aside for a day, let's celebrate the light of peace, coexistence, let's show everyone this is where we're going at the end of the day, this is where people can actually live together, we'll get benjamin netanyahu there. >> it's pretty obvious that no palestinian minister is going say to soda stream until at

least the factory in the west bank, which they see as part of a palestinian state, has closed down. but moving on from that, there have been tensions rising between israelis and palestinians. has any of that filtered through imbue employer relations? >> not at all. within the waffles our factory, there's peace, co-ist ens. it's unlike anything in the world. it's unbelievable. jews and arabs live together. they eat together. they celebrate. next week we're inviting the hanukkah candle. i'm inviting the palestinians. they're going to add light, not take it away. that's what we stand for. >> i have been there and seen them working together. moving on from that, you've got a lot of controversy, not just from the factory, but also because scarlett johan son ended her relationship with oxfam as a result of her relationship with you. is she still your ambassador? >> she's a good personal friend. we work with her on an ad hoc basis. we did the super bowl commercial with her. right now we don't have any plans to work with scarlett on, but we don't know yet.

>> no soda stream super bowl ad? you won't have one this year? >> absolutely not. we've had enough of the super bowl ads. every year we get panned, and we're accused of doing it deliberate. that's not the case. but wf a message to give to the american people, and we're going to do it through other ways. we make water exciting. nutritionists are going to tell the stories. doctors in america are going to tell the stories. a lot of folks who care about hydration are going to tell the fact that when you have a soda stream, you drink more water. it's proven now. >> are we on the road now to a smaller, more lower profile, more modest soda stream? >> i don't think there's anything modest about revolutionizing a category, ok? true, the share performance has been disappointing in the last year for sure, but give us a chance. we're on a new strategy here. we have every right. americans to want change the way they hydrate. they don't want the chemistry and the chemistry. tonight drink more water. give us a chance. give us a few quarters and into next year, and you're going to see a revolution happening at soda stream. >> just one more question.

every other month, we see reports you're going to be acquired by someone. the shares are now at the lowest level isn't i.p.o. are you in any discussions for soda stream to be acquired? >> i can't speak to that specifically. but i'm not interested in act inquired. we don't need it. wf a strong balance sheet, enough cash to do what we're doing. we just built a new facility, and we're investing $90 million. it's nearly complete. we don't need to be acquired am we don't need more capital. we need to execute now. we make water exciting. that's what we do at soda stream. >> ok. daniel, c.e.o. of soda stream, thank you so much for joining us. soda stream being used to test some syrups right now, although i guess we were chatting earlier, the c.e.o. doesn't think it tastes exactly like pepsi. for now, i will hand it back to you in london. >> elliott, thank you very much. fascinating interview. soda stream, what happens next? let's move on, we need to know what's going happen next.

airbus, stock down, absolutely battered on the profit warning. today is day two. they spoke in the last few minutes, talking about the future of the super jumbo, saying it will "dominate the future" in the later. et's get the latest now. >> some die nament i can coming out yesterday. as you said, we had the chief financial officer, the man with the big calculator coming out and saying we might not be able to build the a-380 after 2018. his morning, the airbus c.e.o. and the sales had pushed back and said this is the plane that had a future. it can be upgraded with new engines. t can be upgraded. it will be interesting how this pounds out. the biggest sponsor of this

aircraft over the weekend, he was down in dubai, and they discussed the options going forward. the jury is out on whether it will die in 2018 or whether they can take it the other way, upgrade it, and give it a sort of second future. eye. y may not see eye to our leader reporter, right, coming up, the leader of the opposition in the united kingdom will be setting out labor's economic plan to tackle the deficit. yes, he's remembered the word. we'll bring thaw speech live in the next hour. stay with us. ♪

>> welcome bask you're watching "the pulse." now, that's pretty much it for "the pulse." let me tell you what's going to happen over the next few minutes. for our viewers in continental europe and the people watching in the united states on their treadmills, tom keene is up next. they'll be taking you through the news, which has been dominated by central banks this morning. here in europe, in a few minutes' time, here in the cufment. , we're going to bring you a speech by the leader of the opposition, ed miliband, giving

a speech a little bit further down the road here in the city of london. we'll take that live. that's what's going to be come up a little bit later. that's what the story is for "the pulse." let me just update you on what's happening with the markets as we head into that break. we're going to show you some video in just a moment, but before we show you what's going to happen there, let me show you what's bouncing around elsewhere. 55.1544 is where we're trading. we didn't get maybe the size of the central bank hike that maybe we anticipated, and that was the reaction. so 55.1544 is where we are trading. as i say things are bouncing around, let me continue that theme. it's been one thing for european basketball fans, we actually can't find this video, so we'll play it for you another time. worry waiting for that miliband speech.

it's going to be something that is going to be critical. there's the video. we just got that. we're waiting to stand up. the emphasis here is the -- miliband needs to reconnect with business, and it's been a very difficult relationship thus far, but there's a real sense within the labour party, particularly with other people, the business is going to be critical. the reason for that is that they feel that they've got an opportunity to reconnect over the issue of an e.u. referendum. the conservative party here more broadly are looking at that referendum potentially taking place. if they were to win the next general election, the labour party is saying they will not do that. they will have a referendum if we see a treaty change, but that's not necessarily the case at this stage. labour sees the opportunity to reconnect with business, and that is what the leader of the opposition is going to be talking about when he lays out the economic plan. he wants to reconnect with business. here is our plan, here is how we're going to deal with the

deficit, and here's how we're going to deal with europe. we're going to hear all that have coming up very shortly for u.k. viewers. for our viewers from europe and for our viewers in the united states, tom keene is next. ♪

>> it's spending bill time. liberals rebel, calling it the worst of government for the rich. conservatives make a sausage president obama can sign. the oil focus, it is on saudi

arabia, russia, and north dakota. meanwhile, venezuela nears financial collapse. in raising money, well, the old-fashioned way, sir martin is asked to pass the salt and pepper. good morning, everyone. this is "bloomberg surveillance." we're live from new york t. is a busy thursday, december 11. i'm tom keene. joining me, brendan greeley, and the minimally talented, spoiled brat, scarlet fu. she has our top headlines today. are you starting with angelina jolie? >> we will get that. >> take the high road. >> absolutely, because i a married, married, six kids. all right, in hong kong, a group of pro-democracy protesters is making their last stand right now. police removed the barricades and tents around government offices. they started taking away protesters who refused to leave as well. student leaders say they will remain until they are arrested. the protests began 11 weeks ago. hong kong's government has rejected the key demand