>> shanghai shaken, chinese stocks fall the most since 2008 as regulators rein in retail investors. >> we will have more on the latest bloomberg survey of what to expect this week. >> 50,000 new jobs to the continent, we are live in munich speaking to top tech execs as they vie to win over europe's investors.

good morning. you are watching "the pulse." i am guy johnson. >> china stocks falling the most since 2008. the shanghai composite was down 7.7%. >> regulators crackdown on investors buying stocks with borrowed funds. david tweed is in hong kong. 63% higher in six months. a little bit of a bang at some point. >> it is a pretty eye watering number. the pace of games really concerning the chinese authorities, which is why they had to crack down on margin trading. 63 billion dollars, we can get an idea of what that means. that was the amount of money on

margin loans in june last year. by december $174 billion. you can get some scope of the money that was being put into the equity markets. largely retail investors. this is a market driven by retail investors, 80% is retail. this is what the chinese authorities are concerned about. they have brought in some measures the three largest brokerages have been told they cannot open up new margin trading accounts on behalf of the clients for three months. other brokerages are being punished for opening up accounts for inexperienced investors. we have a very strong message coming from the chinese authority that they do not want to see the piece of gains continued to go up. some people think that this is a

halt in the momentum we are seeing in the chinese market given the fact that this -- the question is, will those retail investors heed the message that policymakers are giving a strong way? >> david, thank you so much. let's get more on this story and shift the focus back to europe. the countdown to the biggest monetary policy meeting is thursday. for more, let's welcome the chief economist. we will talk about the ecb in the trouble we are seeing in europe. give us an indication on how you read the china story. >> david tweed had his thumb on the pulse of it. we are looking at a change in credit conditions for investors.

that is trading 101. i do not think it is repeatable. fundamentals in china are quite good, we are at the low end of a protracted business cycle slow down. the figure we will get overnight tonight, gdp for the fourth quarter. the big story is the big flow of money out of china to the rest of the world. >> another example of regulators -central banks catching investors unawares. increasingly unpredictable. is that the world we live in? >> that is the world we have always lived in. central bankers -- it is a volatile market. >> it has not been volatile.

central bankers have suppressed volatility massively over the last couple of years. >> when mr. jordan at the swiss national bank writes his memoirs, he will tell people that he did not anticipate the market reaction to what he did. >> was it a mistake? >> it is too soon to tell whether it was a mistake or a good idea. clearly, keeping the franc pegged to the euro was an unsustainable proposition. if you did not know that and you were just -- if you were dead wrong about it, it would be the wrong thing to do. >> it is a lesson the central bankers will learn.

people are trying to figure out what the ecb is going to do later this week. trying to communicate to the market has been tricky at the best of times. we are in an increasingly difficult world. tensions are rising. how difficult is it going to be to get policy and policy communication right in 2015? >> i like your use of the word tricky. for janet yellen, it is a lot easier. she has control of her committee. mario draghi has a real tricky problem. he has issues related to being able to signal the central bank's intentions. 19 central banks, all of the points of views, all of the political constraints. i think he has no choice but to be little bit less clear.

he does not know what he will be able to do. >> it seems mario draghi has been very clear. he has preempted the ecb moves by being strong vocally. the markets have believed him so far. >> read what he says carefully, lots of conditionality. if we review, we may reconsider. one of the things we may reconsider would be sovereign bonds. only a certain amount of ways to get there. whatever it takes. the strongest tool in his arsenal, given the political realities he faces is the ability to be able to scare the market down. what i'm expecting thursday is we will probably not get the huge purchase of bonds the

market is looking for. that will remain dangling in the future as a possibility. we might see esf the -- we could see foreign exchange added to the mess. >> we will have plenty more on that. thank you so much. >> let me update you. greece has entered the final week of campaigning. the general election takes place this coming sunday. time is running out for the permit us to. we are speaking to a candidate for the tommy party, who is pulling in third place. >> -- pulling in third place. >> there is a new volatility

leader in town. fluctuations in the front -- franc jumped to five times over the ruble. the swiss franc, volatility, two things you do not expect to have hand-in-hand. >> we also talk tech. more details to come from the digital life designer. >> let me talk to about her twitter question. is tech going to save europe? let us know what you think.

would we be better off spending that money on technology and infrastructure investment? we would like to get your take. ♪

>> welcome back. you are watching "the pulse." we are on your tablet, we are on your phone. this will be something of a theme that runs through this

week. everybody is talking about. the analysis has shifted towards whether the central bank will adopt full-scale qe. i wonder if we have made that migration yet. let's get back to talking about this. carl weinberg is still with us. is everything -- nuance is everything and you have to figure out what is between the lines. nobody knows whether or not this thursday will deliver sovereign buying from the ecb. your sense is that, we are not quite there yet. if i were the president of the ecb i would not go to full-scale sovereign bond purchases right away. i think there will be some qe

coming of this meeting, but it means printing money to buy something. they can buy sovereign bonds, corporate bonds, gold bars, foreign exchange they could buy iphones, little yellow bricks. as long as they print money to pay for them. they could buy dirt as long as they pay for it by printing money that is qe. >> are they doing this because they do not have to deal with the tricky greed question? >> it is my opinion, first of all, that the ecb will do something. the market will be disappointed. it is the only thing we can say ahead of the event because we do not know what they are going to do. the market expectations are so

high, if anything but that won't do we want to position ourselves for a bit of a retracement, no matter what they say. it is going to be a rough day on thursday. as far as the greek event is concerned my theory -- and it can only be a theory -- the ecb may want to open a facility because if the greeks demand a renegotiation of debt, those bonds will turn to dirt because 144 billion of them are back loans from greece. the ecb have in the facility to buy those bonds back would kill two birds with one stone.

it would give them a stabilizing role in the market. >> how does mario draghi [inaudible] greece is a credit risk. how does he manage that credit risk if he has to go to to full-blown buying government bonds. >> it is not his job to do that. the ecb has to fix everything because they are the ecb. it is easy for us to do that because we are the only ones doing anything. mario draghi complains that governments have to get their house in order. some of them are structural,

close down the barriers to entrepreneurship. some of them are basic government support for governments like greece. some of them are things like easing physical stamina -- easing fiscal stimulus to move an economy out of a depression. the ecb cannot do this on its own. credit -- uroplasty stand together. >> -- europe has to stand together. >> you cannot slam them down. they have taken the pain and they will get their. >> -- get there. >> we have a problem and we are looking at from a number of different directions. we no longer have the fact.

the ecb cannot fix what is wrong in europe. we are in the eighth year of a depression and there will be a ninth year and attempt here and prices will go down -- and 10th year and prices will go down. there is no way the ecb can fix this. >> if i am buying something -- is buying spanish debt risk free? >> buying any debt should not be risk-free. there certainly is risk there. is germany going to bail? germany can't.

there is risk. you look at greek government bonds. not because they were safe but because people recognize them. everybody believes that germany and other european countries and suddenly they were safe. the fact is, they are not safe. >> you are intimating that whatever happens are we looking at a japanese-style economy? would you not go heavy on thursday? >> japan's problems are very different. the real problem of james -- japan's problems, a massive debt

growing faster than they can never be paid back. japan has to labor under the burden of managing an ever-growing debt with ever shrinking. it is a finite problem and it is solvable in the different institutional setting. it looks like japan topically but in terms of its underlying root problems, it shows a different problem. >> we will wrap up the biggest bank losers following this was central banks decision to end the cap on the franc.

♪

>> welcome back. live from bloomberg tv and radio. >> let's get some company news.

john lang has announced plans for an ipo in london selling the business for 130 million pounds. the diverse range of products includes didion's -- stadiums in australia. >> the men's fashion show for ferragamo took place yesterday. the ceo spoke to bloomberg about their strong finish in 2014. >> we closed with a very strong end of the year. net worth in terms of revenue showing growth in all of the markets. >> deutsche telekom plans to increase spending on that works in germany. 27 billion on projects in its

home markets. >> 50,000 new jobs in europe this year alone, that is what uber sees as the potential growth in the eurozone. hans nichols joins us. what of you been hearing on the ground? >> there is this traditional debate taking place the between innovators and the regulators. last night, you tried -- you saw uber try to get in front of that debate. >> we want to make 2015 the year where we establish a new partnership with eu cities. we push for progressive regulations and ensure innovation and help build the smart cities of tomorrow. we will promote core city

functions. we will provide massive economic benefit to cities and their economies. what is this mean at the end of 2015? if we can make these partnerships happen, we create 50,000 new eu jobs. >> there are conversations taking place on progressive regulations, also talk about potential deals all around me. quite a vibe around here. we have the ventures ceo, and we also have chris moody from twitter. talking tech, talking deals, and maybe talking jobs. >> we have a great guest coming up. the ecb will announce a program

this week. will it be enough?

>> welcome back to "the pulse/" i am francine lacqua. >> chinese shares have fallen the most in six years, the shanghai composite has dropped 8%. chinese regulators are tightening control over margin investing concerned that the 63% surge in stock prices may lead to instability. >> president obama will lay out

proposals for new taxes on the wealthiest americans. he plans to increase the top rate of capital gains tax and taxes on asset transfers. >> mario draghi is likely to announce a qe program this week. this will be his biggest push yet to tear the eurozone away from deflation. >> anticipation growing that we will see a significant announcement from the ecb on thursday. equity markets are trading higher. in asia, it has been a little bit of a bumpy day. particularly, in china. this as the authorities make

efforts to reduce the amount of money traded on margins. they have restricted the top three brokerages from opening new accounts. the shanghai composite results in the biggest drop. no u.s. stock markets are closed today. >> a big week. a very big week. uncharted territory, we are already there. you be taking another step into that uncharted territory. let's talk to paul in frankfurt. >> the market is anticipating a lot. >> a lot is a subjective call.

earlier, we are looking out proposals -- the markets are saying the ecb needs to go further. speculation that draghi will top the new expectations. and he might to. he is looking at a trillion euros to the ecb balance sheet. he has 200 billion euros to be repaid by the banks of the next few weeks. current programs they really have not added a huge amount so far. he is going to have to go a long way. there will be out there saying, we would rather see more. >> the major haggling seems to be over allocating risks. where the possible outcomes? >> quite a few.

there are some governors saying we need -- we do not like qe. for example, german taxpayers would take on the burden of potential losses from buying foreign debt. what he would achieve by doing that, by limiting the risk, would be ability to announce a bigger package. if he goes the simple route central bankers may say, we will limit the amount you can actually buy. what will be the structure of buying? willoughby a monthly amount unlimited -- will it be a monthly amount unlimited?

>> what is the risk associated with the balkanization of credit risk around europe? it will make it difficult to see the eurozone as the united front when that credit rate has been subbed out. where will that leave the ecb? >> this is precisely the concern, the selling point. if you could come out which is very complicated. some central banks logic of further -- you do have a balkanized -- therefore, you

start to undermine your chances of success. that calls for a more dramatic program. mario draghi will talk a good game he has always done that, but he needs to come up with something big and bold. >> qs so much. -- thank you so much. it is a big week in terms of coverage this week. that will not stop us from taking the ecb press conference live. that is this thursday 1:30 p.m. u.k. time. >> the ecb has now moved to six weeks. on thursday, i sit down with some of the most influential business leaders in the world.

>> that is quite a good set up. we will carry on the conversation. stay tuned for that story on "the pulse."

>> being a producer, you know, the price differential a luxury goods -- of luxury goods it shows a sign. >> that was the impact of last week's action on his business. the loss has been inflicted on some financial services companies. here is caroline hyde. a number of trading companies have reached out for help. >> it is quite phenomenal, the damage that has been raked.

-- wreaked. many out there in the market would. some of these brokerage companies, they have retail investors excited about trading foreign exchange. how do they do that? putting a small amount on the table to be able to take big positions. you could have two cents on a trade that was worth one dollar. you had a very small amount but you have to deposit at the brokerage company. who will fill the gap? they said on friday they would have to look for going into insolvency. they said, no, we will not. they are looking for a buyer.

it could be pepper stone from australia. we have the biggest u.s. retail foreign exchange broker, a million-dollar lifeline they have been given. >> banks? >> banks are being hit hard. deutsche bank $150 million they have lost. barclays, slightly less than $100 million. we spoke to the european banking authority, the chairperson, and he tried to make clear that they have the strength in place to supply these. >> these shocks are always -- european banks have capital significantly. they are much more resilient now.

>> they can survive a 40% to move. volatile moves. one thing that is interesting, julius baer. we suffered no losses from the swiss national bank move. they could manage to maneuver themselves within the volatility because they are so well capitalized. no losses. >> what about capital global? >> that is the hedged fund, $830 million is how much that hedge fund had under assets. they will have another $2 billion of funds, but they made the bet the wrong way. >> caroline hyde, thank you so much. >> the world economic forum

comes back to job those with world leaders -- comes back to that those -- i to davos. we take a look at one of the hotels. it is called the golden egg. like a bond villain slayer built into a mountain, the intercontinental known as the e goldengg richard branson, bono john kerry stayed here last year. it is guarded by swiss soldiers. it may not be enough to protect it from bankruptcy. where did it go wrong? other than the week of the world economic forum 216 hotel struggles to fill it's bad --

fill its beds. hard to believe it could fail. one of just a few -- credits these pumped $152 million into the site -- credit squeeze -- credit suisse pumped $152 million into the site. it is fully booked for the week of the forum, the problems facing credit suisse. >> we are not staying there. >> going public, rumors about an ipo will not go away. we will take you straight to munich. a discussion with one of the company's earliest investors. that is coming up next. ♪

>> good morning, everybody. you are watching "the pulse." aztec titans gathered -- as tech titans gathered in munich, he

told her international correspondent about the biggest trends thus far in 2015. >> the number one trend is something that is important to everyone. content creation. content marketing was this big frame of mind. we think content creation is the next big evolution. you are only as good at what you cana great example is nike. i might buy a pair of running shoes once a year but i am tuning into their nike tumblr many times a day. the ability to publish quality content is a huge trend. >> we are talking about micro-content. >> micro-content that you can

consume from your phone. that is the thing brands are coming to us time and time again. >>they have many posts and they can choose to highlight one of those posts as a sponsored post. >> your case to potential advertisers, it is more the brand you were talking to not necessarily advertisers. >> they want to build audiences, buying in and into the brand as publisher movement and they're coming to tumblr to build out their site and headquarters, that is to we have conversations with. the cool thing, have our user community has embraced brands because the brands have been so creative. ford ibm, dior pushing out an

amazing batch of content. >> talk about international growth. >> we had a huge amount of growth in brazil, germany especially. it is something we are constantly thinking about. one of the main reasons we have come back year after year is because growth internationally is top of mind for us. >> is at the facebooks,. the googles? what is your value proposition? >> to build your home on tumblr and use our platform to syndicate out to the other social channels. we do not view them as competitors. a lot of traffic comes to tumblr from places like interest -- pinterest and twitter.

>> the networking bonanza unfolding, some of the biggest names in tech together for discussions on how best to keep up with the changes in an increasingly digitized world. hans nichols is on location at the conference. >> a special guest, a big investor. i am joined by index ventures founding partner. qa for joining us. -- thank you for joining us. 3 billion euros, what is the opportunity for european investment gekko >> -- investment? >> if you think about same time last year we talked about how europe can support and create the foreign companies.

laster, we had a few examples. in the last month we would be able to create a lot more additional companies. it is leading the online entertainment, mobile gaming industry. if you look at the service industry. with these european roots, this is all supporting the idea that it is becoming a personal ground for companies to become creative. >> can you get your foot into the door based on the strength

and the weakness of the euro? >> we always look at the underlying business. create those billion dollars in value. whether the company is in europe or the u.s. multicurrency, multi-local. companies like -- transforming the industry the a work across job fee. the base they have in europe is only a platform from which they attack the global market. they have to be multinational. >> startups go up against companies already in that space.

is there still an us versus them mentality? >> when you talk about disruption and industry people say that destroying and industry that was profitable. in reality, a lot of the companies are innovating and we are convinced the collaboration the tree and large companies and the son of world -- and the start of world is the benefit for both. create a better place for consumers. we are a big proponent of trying to get large companies closer to the platform. so that they can embrace and pick the ones they want to work with. >> is this a chance for you to

open your checkbook or make more contacts? >> we will not look for additional but forward thinking and share your thoughts and seeing many of our ceo's present. it is a good networking place to share ideas more than anything else. >> thank you for steering your ideas with us. -- for sharing your ideas with us. we will get back to you in the next hour. >> we have a packed our. -- packed hour. for those listening on bloomberg radio, the first word is up next. >> for our viewers, the second hour of "the pulse" is next. chris moody will be joining us.

if you want to join the conversation @guyjohnson. ♪

>> shanghai is shaken, the chinese stock market falls the most since 2008. >> druggie will make the biggest push yet for a bond marking -- selling program. we will have the latest on what to expect from the ecb this week are in >>uber promises to bring jobs to the continent. >> good morning to our viewers

in europe. a warm-up come to those waking up in the united states. happy martin luther king day. >> this is "the pulse" from bloomberg headquarters in london. let's bring in hans nichols. you are joining us for the entire hour. >> it's an exciting hour. it is a jampacked morning. it is a question of how you have regulators and animators, how everyone gets along. we have an exciting batch of guests. if i have time i would like to introduce our first one for this hour. it's the coo of dropbox. one of the opportunities? >> our business is growing weekly. we have 300 million users. think about your life, you are creating huge amounts of data. all of the video and data, you need to store that someplace.

the old hard drive doesn't work. people using dropbox. >> businesses as well? does this get into business accounts? >> we have over 100,000 businesses using dropbox that has doubled in the last year. companies are using it for sales presentations, architectural design. all kinds of data that they can collaborate on much better when they can give it to people who are mobile and people can use a dropbox anywhere. >> two people feel less secure? we talk a lot about data security, do people feel less secure if everything is up in the cloud? >> if consumers and businesses did not trust us, they would not put their most important information with us. we encrypt everything. we take that obligation to

protect our users data seriously. the growth of the service seems to indicate people believe in how we approach the problem. >> there is one security breach to keep you up at night. >> we have some the best security experts in the world that are focused on that problem. this is a problem that could affect every business. we have not been breached. >> you are based in the valley. do you think you will cross here or there in terms of new money chasing new opportunities? >> we are in the early stages of something that is going to be very big. 3 billion people are connected to the internet. they are creating a massive information every day. they are recording their lives. that is going something to a cloud service. these markets are huge. if you are talking about music or ridesharing or storage, the markets are enormous.

>> evaluations don't concern you? you don't think we are in the middle of a bubble? >> we are focused on building our business. we are building out our teams to serve businesses that are in europe. these are partners like spotify. there are tens of thousands of smaller businesses that rely on a dropbox to run their business. >> what you think of the regulators? >> they are concerned about how we protect user privacy while enabling investigative authority to do their jobs when someone is suspected of a crime? we take trust -- it's very important for us and our users. when we receive an inquiry from

government, we disclose that to our users. we think government will evolve in the dialogue and we are part of it. >> story things in the cloud it does it make us dumber? >> it makes us smarter. you have access to all of the information that helps you do your job or live your life. >> how many phone numbers do you have committed to memory? >> probably none. i don't need them. >> with that, i know you still remember all of your phone numbers, francine. we will send it back to london. we will have more throughout the morning. >> i don't even know my own phone number. >> i do. i sometime forget my wife's that is dangerous territory to head into. >> thank you so much, hans nichols. >> we will be back in munich very shortly. another gate crest is going to

be joining hans nichols later on the program. he is our international correspondent. what else is on our radar? that is when the next shareholders meeting takes place. the bank will name smoaghi as ceo. >> fluctuations in the franc jumped five times. >> greases entering the final week of campaigning for the general election. time is running out for the prime minister. covenant, we will speak to a

candidate from the party that is pulling in third place. people are talking about a second round of elections. that would be a catastrophe for the country. we will have that for you shortly. ♪

>> welcome to "the pulse your

e." the put tommy partour next guest joins us from athens and says the second round of elections would be catastrophic. she is a professor of economics. this is a bloomberg exclusive. thank you so much for joining us. give us a sense of how concerned you are about a possiblegrexit? >> we are concerned. we appear to be on the brink again. the previous time was 2012. the reasons were primarily economic. the economy was in a mess. it there was a catastrophic

trend in all major economic trends. now we're back on the break. this time, the brink is politically fabricated by the government. they want to show how dangerous the left opposition could be if they have the chance to get into government. although the reasons are mainly political, the danger is no less real. if we fall, we will break our neck as we would have done. the situation is very critical. the economy looks better but politics looks worst. our own contribution of becoming the third party is to make sure that we create stable coalition

governments. the problems now are so big that no signal party government could ever dream of addressing it. >> could a coalition be stable in your mind? >> who is going to be the first party is something that is not for us to decide. it seems that he is leading the polls. it seems that it will be the first party in the elections. however, if we keep saying that it is very difficult to find common ground it also means that we say this country is ungovernable. this we do not want to say

because we don't think it's true. we think this will open up new avenues of dangers that are very high risk. common ground can be found. the thing is, we need to try harder to find it. >> do you think there will be a significant shift in the policies in order for that reality to become something you could see yourselves working with? people are talking about a big u-turn do you think he will deliver it? >> i definitely hope that they will deliver this u-turn. they are aware of the fact that the majority of great people are in favor of staying within the eurozone and the european union. they have to wake up to the reality that there must be a

framework for any policy moderation. i am confident they will see that. i am less confident that they will know which is the absolute -- the point where they should make the turn. this is why we are here, we want to help them realize the deadlines. >> you would consider that a coalition? >> absolute. he's been saying that we believe we should not go to a second round of elections. these will only reinforce the first party. this will be catastrophic in the sense that no signal party government can address the big

problems of greece. we are not going to change our line because of that. even more so, we feel that we need to sort of enter the scene in order to be helpful and avoid accidents. >> have you reckoned guys -- reconcile a business friendly liberal party? i understand it goes back to the question guy was asking. what kind of common ground will you find them? >> for us, the priority is not to allow any first party to enter in the dangers of doing unilateral movements that will

endanger our participation in the european union and the eurozone. we feel we need to target the very poor families who are completely lost in the nonexistent safety net. social policy in greece is aimed at middle incomes. the people who are clients of the state. the third of priority is a simpler tax system that will allow people to contribute without being suffocated by taxation. we believe we need to stop this hijacking of the state either party. we don't want to allow him to use the government.

we need to seek for the people who are best fit for the job, regardless of their party activity. these four things are not irrational. they seem very rational to me. they are not very ambitious. the party that is going to be first in the election would want to discuss this at least. we will not give a white empty check to anybody. we want to be part of it to ensure that there are no greater adventures line ahead. >> can i ask you how you would negotiate greases that's with the rest of the eu? what is your stance on that? what is the best response to

dealing with that? are we in a situation where it might not need to be done? >> i need to stress that i think this whole discussion about the debt is misleading. the main problem now increase is a lack of liquidity. the lack of liquidity is what is suffocating both firms and households. it is important to try and make life a lighter burden in order to service the debt. this can be done in a variety of ways. it can be done with lower interest rates and extending the. of repayment. i'm sure technical solutions are available. i'm sure that our creditors are

willing to discuss them. in order to put the economy back to work, it will produce more gdp. i'm sure the creditors understand that. i'm sure that unilateral moves endanger our credibility even further. >> thank you so much. >> up next, life in the digitized world. europe's biggest digital conference is underway in munich. ♪ will

>> welcome back. you're watching "the pulse." we're also on bloomberg.com. this is the 11th annual conference underway in munich.

hans nichols has been joining us all morning. this is the great guests that this event has. over to you. >> the president and ceo is with us. i am joined by robert tarkoff. you were just on a panel. you were talking about the new consumer. what do consumers except -- expect from tech? >> there are extreme expectations. most consumers expect that you are going to engage with them automatically on the channel of their choice and fulfill high levels of service needs that they expect to see day. the google, amazon, facebook that is the standard. >> what do small companies need to bring their game up? >> there are a lot of options

for smaller companies. there are cheaper tools available on the internet. the big issue is for the larger brands. they have hundreds of millions of consumers to make decisions every day. if they don't transform faster they will miss an entire generation of customers. >> who is doing it well? >> in europe there are companies in switzerland that put together a platform where people can rate in review different kinds of foods. you have companies like at&t in the united states trying to transform digital over the next several years. you have companies like google that are running their own communities. new tech companies are doing it really well.

there are some more traditional companies like at&t that are making initiatives as well. >> put on your german schoolmaster hat, who isn't doing well? >> without naming any specific companies there are some that just aren't seeing the urgency of the transformation. as we talked about on the panel the time is now to understand there is no entire generation of consumers that are coming up digitally. they expect that app experience. they expect immediate response on twitter or facebook. a lot of companies just aren't there. >> isn't there a response to -- risk to responding to every criticism. does it really make sense for a company to engage all their customers that way? >> not necessarily. you don't have to do it. there are best practices that we talk to our customers about. one is to engage the consumer group or your customer base to

act on your behalf. you can find that passion for your brand that exist out there and get them working for you through communities. there are ways to do that. >> but we talk about sectors, is there any sector you think does need to do more? what sector? >> the sectors we are focusing on where the need is most urgent , communication service providers and tech companies and consumer electronics deputies but also banks and credit card companies. these are the major life decisions that consumers are facing. those are the key factors. >> there is room for improvement on those key sectors. >> i know you're banking is entirely on the up and up and you don't need any room for improvement. >> there is always room for

improvement in general. >> no there isn't. >> we will be right back with hans nichols. ♪

>> welcome back to the pulse. >> i'm guy johnson. these are the top headlines. >> chinese shares have fallen the most in six years. three of the nation's biggest brokerages were stopped from adding margin trading accounts. regular it is our tightening control on investing. this may lead to instability. >> president obama will lay out proposals for new taxes on the wealthiest americans in his

state of the union address our night. the plans to increase the top-rated capital gains taxes the new measures are expected to generate $320 billion. >> mario draghi is expected to release a cutie program this week. this will be his biggest push yet to steer the eurozone away from deflation. now let's get back to talking tech and cyber security. our international correspondent hans nichols is on the ground with twitters vice president. >> printing, i am joined by chris moody. he is from twitter. what is your message from twitter to everyone here? >> we are talking about the role

of data in businesses in making smarter business decisions. we think twitter has the ability to make every decision smarter. we can help you understand what the world is thinking about any topic at any moment in time. why wouldn't you want to insert that into your view of customers or your partners as you think about the world? >> are you getting real-time data from twitter? >> we deliver stuff with sub one second latency. we have all the tweets from all-time. that becomes for a lot of cases were people need to go back and study the past and what happened around a series of events in order to make better decisions in the future. the historical data is great. >> d you see any geographical differences with adoption of this kind of technology? we have big growth in asia. >> we have data in 42 countries.

there are tons of information -- innovation happening in the states and israel. we have very active communities developing on the platform. different areas are working on different types of problems in the united states. there is a big emphasis on customer service right now. there is more public messaging to deliver a better experience. >> what about security concerns? all this data you are gathering it is public. i am putting tweets out there for someone. it's important to remember that the user put it out there because they wanted to share. >> that is truly unique. it's not public in a technical definition. people turned to twitter because they want to deliver a message. the power of it being public means we can deliver it to the system that businesses have invested heavily in.

this is not about having another marketing dashboard the gives you a view of how twitter thinks about the world. i have a supply chain system and now i can take twitter data and insert it and make that are supply chain decisions and inventory management decisions. >> you need users to adopt twitter. it give us an update. >> there are 6000 tweets every second of the day. we spike at 40,000 tweets perspective. we do not have a content count. we have too much content. we spend much of our time trying to help people mine the content that is going to help them. that is where we are focused the mining of the mass of content that we have. >> not necessarily finding new users? >> it's about 19 data for valuable insight. >> when you look at the privacy concerns, what is the strategy?

have you make sure that people's accounts are secure? we have this big issue back in the states with i still===sil pretending to take over centcom. >> all technology companies that have passwords you to take on the responsibility of hygiene for passwords. >> you put your information out there and then it twitter can scrub that data. >> we need to respect the voice of the user. their data is public. that is an easy thing to do. it is a public platform. >> have you ever regretted anything you've tweeted? >> yes, but we have a delete feature. [laughter] i mostly regret misspellings. >> i think we always regret our

misspellings on twitter. especially when we've said something particularly clever. i have only read about it. it is never happened to me. we will send that back to you. >> i'm sure you're quite understanding. i certainly have. that's why it's fun to follow people, when they say something that makes no sense. >> that is when i make most of my mistakes. >> up next, videos next step. we are back at the digital life design conference with hans nichols. we will be there in a couple of minutes. ♪

>> welcome back. we're live from london on bloomberg television. >> we will be back at the conference. we are trying to establish contact with hans nichols. he is our international correspondent we will be back with munich in a few minutes. the irony is technology is letting us down. in the meantime it, some company news. >> it's a shift for the owner

who considered selling the company. the diverse range of projects are highways and windfarms. >> europe's largest phone company plans to spend $20 million on a project in its home market. they will unveil the planet at an investor meeting next month. >> and italian suit maker is tearing up their budget. the company is reviewing everything. they make most of its measures which are now more costly. let's have a look at the markets. let's show you what is happening here. last week, some volatility.

that is what the markets are delivering it. not very much. we are looking with the ecb has in store for us on thursday. that is the big event of the week. the markets are waiting and marking time, trying to figure what is going to happen next. a real sense among those we have been polling that we will see a significant announcement today from mario draghi. the bond markets are unchanged as you can see. we are barely budging. everything else is unchanged. >> let's have a look at china. china has been one of the big stories today. i do know we can get that up for you. >> chinese equities have plunged the most in six years. it all goes back to a lot of those banks, they try to

persuade investors that they are not switzerland. it does not mean lost credibility for certain banks. what does it mean for other governments trying to say we are going to stick to our peg? >> that is what is happening. down at 7.7 overnight. the technology has been fixed. we are now able to take you back to the conference in munich. that is where we find hans nichols. back over to you. >> i am joined by the ceo of videmeo. thanks for joining us. everybody was to get into video. tell us what the big advances of them in the industry goes? >> thanks for having me. video explodes on the internet.

one of the major milestones is the 10th year of open video sharing on the internet. vimeo was one of the early services. the thing that distinguishes us is we have a higher quality approach. we have no interruptive advertising on our service and different creators sharing higher quality work. that is one of the major trends we are starting to see emerge. youtube chartered the path for mass sharing of consumable video. what we are seeing is an emergence of a new class of high-end video that is coming from independent creators everywhere in the world. we are allowing them to sell their work. we think one of the major trends we are seeing is just like in television were the first 50 years were just about free content that was advertiser

supported, we are seeing this paid layer. this is something we are very excited about. >> give me a percentage of how many are co-gross? >> it is a huge category. it shows you that it has more affordable tools in the hands of enthusiasts. action sports is one of the prime categories. this is a very popular category. those videos where they are skiing or snowboarding or skating, beer is a very passionate global audience that is underserved by traditional outlets. we are seeing themselves very well that would never generate the scale to make a viable business using advertising. >> what is the difference between doing business in the states and doing business in

europe? >> it's not that different. that is one of the exciting things about the internet. unlike itunes or netflix that may be coming from the states and two other territories, there are generally parameters they have to it here too. the content licensing is very established. on the internet, we provide a platform that any creator can reach any viewer from anywhere in the world to anywhere in the world. it has been a global service since the beginning. we are excited about that. one of the things we see is creators selling content in over 100 countries in a matter of days. to be able to do that without any traditional distribution relationships through any of the halls of the media capitals of the world, it's incredibly exciting. >> what does the news business

look like to you in 15 years? >> is a distinct animal. the level of credibility that is required to really produce high-quality journalism it really does make news a different animal than entertainment products or sports. we are not quite sure yet. we see the news is opened up quite a bit in the way that social media plays a role. it has to be a symbiotic relationship between the open internet and rational news outlets to make sure that people get information that is reliable. >> when you look at the competition for customers and you see some of the valuations attached to some of these companies, does it feel frothy to you? >> i've been working on the web since the late 90's. we have seen some crazy things over the years from a eluate in perspective. i do think we are there right now.

i don't think we are there. everything is changing so fundamentally. for a service like ours, we reach 170 million viewers a month. now the quality of video delivery, i worked on the web back of a were trying to deliver video over dial-up. it was not a great experience. we can deliver in hd quality stream to any device and we are getting to the point where even wirelessly that's ubiquitous. i think the power -- >> technology failed us. >> that's the thing about technology conferences. there is a message in there somewhere. >> this is breaking news. this is from the french

president. people may not think -- does he know something? is he going by the markets? >> may be draghi had a conversation with merkel and she had a conversation with him. >> interesting. on friday he got things mixed up. this is the french president and he thanked draghi for bringing inflation close to zero. he probably does have the best handle on the economy. >> you can understand politically why he would say that. having zero inflation probably make sense. it makes less sense if you're the head of the central bank. >> is obama leading to lift his legacy? we will look and what he wants

to do in the last two years of his presidency coming up. ♪

>> this week, the world economic forum comes back with world leaders in attendance. it's a good week for high-end hotels. >> is one week a year and up sustain business models? we took a look at the biggest

hotels in davos. they call it the golden egg. >> like a bond villains layer this is the golden and. john kerry, richard branson, and bono allstate here last year. it is guarded by swiss soldiers. it may not be enough to protect it from bankruptcy. where does it go wrong? other than the week of the world economic forum 216 hotels struggled to fill its beds. even the local authorities diver a planning fee without a guarantee. this is one of a few resorts they pumped money into the site.

the hotel has lost 6% in value. bankruptcy proceedings are ongoing. while it is fully booked for the week of the forum, -- >> it's going to be quite a week. we are heading over later this afternoon. we will take it in life. we will have a count to discuss what it means for 2015. larry summers will join us for a packed panel on thursday. >> right. this is what we need to watch for the rest of the day. we are gearing up for the state of the union. >> tomorrow night we are

already talking about it or it last year it was watched by 33 million people. nonetheless, 33 million people is an accomplishment. he has taken a different approach to this year's address. they laid out most of what he is going to say. the approach in the past from revis presidents has been to tease it out and put some suspense integrated we know what he is going to do. the democrats are thinking about 2016. republicans of heather opportunities to lay out their agenda. this is going to be about how the democrats intend to support the middle class and how they are going to tax the rich. that is what we are going to get out of the speech tomorrow. >> that has a lot of

implications for his legacy. >> absolutely. he is in a difficult space. both houses of the congress are controlled whether republicans. most people are going to look at the speech as an expression of intention than what the democrats can actually accomplish. when he says he wants to raise the cap on capital gains and sick days should get paid in the united states by having a woman in the audience who benefited from the recovery act and runs a small business in colorado and got a lot of loans and raise the minimum wage for her employees to $10 per hour he gets to emphasize the minimum wage. we should look at it as 2016.

it sort of will be emphasized tomorrow night. >> they're going to discuss how they can work better to fight terrorism. that has been a huge issue. they are also going to talk about russian sanctions. there has been chatter about how they need to be rolled back. given the fighting we have right now in ukraine it's ready in tents fighting -- intense fighting, that is not looking very likely. >> thank you for the latest on obama and the meeting in brussels. that is it for "the pulse." keep it right here on bloomberg television. programming continues on bloomberg television. we are heading out to davos. manas -- manus cranny will be in

the share. it's going to be a fascinating week. >> have a great afternoon. ♪

>> a few good men catapulted an actor to celebrated screenwriter and producer. he went on to bring us the west wing, moneyball, the social network, and most recently, the newsroom. joining me today on studio 1.0 aaron sorkin. thank you for being here.