ministere u.k. prime is to announce details of his plan to renegotiate e.u. membership. vodafones picks up. shares rise as the company sees recovery. china risk. more evidence emerges as inflation continues to ease. the is "the pulse" live in city of london. i'm manus cranny. prime and mr. david cameron is about to set up his demand on

the european union membership debate. the speech comes as he sent a letter to the e.u. president, formalizing the government's stance. u.k. bring in our political correspondent. and the managing director and member of the investment commangnac. the world waits to hear from the man's lips what it is he wants from you. there is the laundry list. what is the sticking point. svenja: that people had identified a few months ago, which is this idea, which is vaguely expressed as curbing mig ration, but means curbing in -work benefits. and a lot of e.u. members are saying this is dissemination, -- because ition,

attacks the principle of free movement within the european union. the idea is you are polish citizens. you come to the u.k. you have the same rights to claim welfare as a british citizen. what david cameron is pushing for is for that to be restrictive. off.: it is a long way the theater of the beginning of theater of a very long -- how i look at it. there are many details to be worked out in negotiation. from an investment perspective, where is the timeline? how do you look at this debate for the bank of england? does it change anything? does it change the ray rice? your perspective for owning investments -- does it change the rate rise? >> the play started some while ago. most certainly a lot of the discussions have been taking place for quite a while. some of the other points that

are being mentioned or that will be formally announced, you refer to the urge to increase competitiveness, to increase the power of national parliaments. of goes the sort direction that the european union needs to go anyway. quite a few members want that. to a large extent -- manus: where do you think he's going to get the most support from? >> on several topics, france an d germany have already quite supported some of the claims he has made. on the idea that more efficiency should be, competitiveness should be brought into the picture, italy was very much a supporter of that. so, there is going to be some level of support. the other thing is, it is perceived from the continent as something which is, a number of topics, which to some extent or

more controversial and the u.k. than they are in the continent. manus: i suppose he has been told countless times that trying to deal with this, the sticking point that you referred to is perhaps going to be the most difficult because that comes down to the movement of people and formal e.u. agreements. the people you talk to politically at westminster, in the village, what do they say about the prospect of the timing of this referendum? my goodness, are we going to spend the whole of 2016 talking about it rather than getting the trigger pulled? svenja: the consensus is that if they can get it out of the way early, they will. there was a lot of chatter at first going for next on. -- next autumn. the problem is there is a process. and yes, three of these principles should not be too hard to achieve. the fourth, the issue of curbing benefits, is going to

prove a major sticking point with eastern european countries. he needs agreement across the table from all of the 27 members. so, what we are going to see now is an accelerated phase of negotiation. a lot of behind the scenes work has already been done. but the sense that we are getting in westminster is the moment they think they can get a deal, they are going to go for it. manus: the moment they will get a deal. give me your perspective. how much does this feature in conversation as you see clients, as you begin to talk amongst yourselves? what is the biggest burning issue? how do people look at this , y ou're a european, how do look at it from a european perspective? ain, i do think it is perceived as a u.k.

controversial issue rather than something big at stake for the rest of europe. one more thing -- in these negotiations which again, a lot of that takes place behind the scenes, there is a virtue to having a list. in the sense that then you can start focusing on what really matters, and you are not running the risk of some new issue being put forth just at the last minute before a decision needs to be made. listme extent, having a restricts the areas in which you need to negotiate. way, that is more reassuring. going todier, you're be with me for a little while longer. we are waiting for -- we are waiting for david cameron to hit the podium at chatham house. ok, let's take a very short break.

manus: welcome back. this is "the pulse live on bloomberg tv, streaming on bloomberg.com, your tablet and phone. you're looking at live pictures of chatham house where we are waiting for the prime minister

david cameron to deliver his speech on the e.u. what is it that he is going to be requesting from his partners in europe for a reformed e.u. relationship? in the meantime, let's get up to speed on equity markets. london down by 2%. the rest of europe is improving somewhat. let's get across to mark r in to a little bit deeper into these markets. all about china, i'm afraid. weaker than forecast consumer price data, an increase of 1.3% for october was below estimates. 5.3%,er prices sunk by extending the declines to 41 consecutive months, coupled with the recent weak trade data. that means the figure certainly open the door for the people's bank of china to loosen policy further. throw into the mix the prospect of an interest rate hike in the u.s. in december. investors certainly have a lot to ponder right now.

emerging market stocks are sinking for a fourth day. the s&p 500 had its biggest drop an a month. this is a five-day chart. as you can see, stocks are down for a fifth consecutive day. a lot hasgly, happened in the last seven days. last tuesday, the odds of a u.s. were 50%. today they stand a 68%. why? the blockbuster u.s. job support. -- report. global stocks have rebounded 9% since sitting hit two-year low in september your today. this index, the msci, has fallen by 2%. let's just show you what is happening to nickel today. because nickel is one of the industrial metals that is sinking on that china inflation news, which points to weakening demand, particularly demand for commodities. we know there is a weak demand

for commodities because the trade data on sunday told us as much. declining heavy industries helped push imports down by 18.8% in october because of weekend demand for coal, eye and or and other commodities. nickel is heading for its lowest close since 2008. it has now fallen for six consecutive days, which is its weakest stretched since february. by the way, year today, it is down by 37%. manus: they give very much. fascinating to see. anglo american dropping down, the biggest loser in london. there you go. he is about to tell us what he really wants from your. almostinister cameron: three years ago i made a speech about europe. i argued the european union needed to reform if it was to meet the challenges of the 21st century. i argued that britain's best future lay within a reformed european union if the necessary

changes could be agreed. peopleromised british that if i was reelected as prime minister, we would have a referendum and the final say on whether our national and economic security is better protected by remaining in the european union or by leaving. that promise is now being honored. the law of the land will require that there must be a referendum membership by the end of 2017. the renegotiation is now entering its formal phase following several rounds of technical discussions. and today, i'm writing to the president of the european council, setting out how i want to address the concerns of the british people and what i believe the changes that britain is seeking will benefit not just britain but the european union as a whole. would of course be for the negotiation itself to conclude the precise legal changes needed to bring about

the reforms that britain needs, explain ini want to more detail why we want to make the changes we have set out and how they will make a difference. this is perhaps the most important decision that the british people will have to take at the ballot boxes in our lifetimes. so want to set up for the british people why this referendum matters and some of the issues we should weigh up very carefully as the arguments ebb and flow as we approach the referendum. i want to explain to our european partners why we're holding this referendum, what we're asking for and why. almost made this speech three years ago, the challenges facing the european union, they have not diminished. indeed, they have grown. the economic outlook may be somewhat brighter, but the crisisof the eurozone and doors. the threats to our security and to the security of every european nation have grown

enormously in the last two years from the russian invasion easter ukraine -- eastern ukraine to the emergence of isis and the migration flows. across europe, the rise of parties a protest to man's response. nothing has rendered obsolete the central argument i set out in my speech. if anything, it has reinforced it. the european union needs to change. it needs to become more competitive to cope with the rise of economies like china and india. in the support relations between the countries inside the euro and those outside it like britain onto a stable, long-term basis. it needs greater democratic accountability for national parliaments. operatel, it needs to with the flexibility of a network, not the rigidity of a bloc. never forget the european union now comprises 28 ancient nations

of europe. that very diversity is europe's greatest strength. britain says let's celebrate that fact. let's acknowledge that the answer to every problem is not always more europe. sometimes it is less europe. let's accept that one size does not fit all. that flexibility is what i believe is best for britain, and as it happens, best for europe, too. doing what is best for britain drives everything i do as your prime minister. that means taking the difficult decisions and sometimes making arguments that people do not much want to hear. it is why we have taken the difficult but necessary action to reduce the deficit. it is why we are seeing through our long-term economic plan. it is why we are reforming welfare and education. because we know that the bedrock of our security is a strong economy. and that these are the things any nation must use-- must do to succeed in the 21st

century. it is why, despite the pressure on public finances, we guaranteed to spend 2% of our economy on defense and why we are spending .7% of our gross national income on overseas aid. with that money, where able to equip our armed forces with two brand-new aircraft carriers, to double our fleet of drones, to buy new fighter aircraft and submarines and to invest in our special forces. we are doing all of these things to protect our economic and our national interests. and that is the prism through which i approach our membership union.membershi european making the difficult argument, addressing the issues no one wants to talk about, and protecting and advancing our economic and national security. like most british people, i come to this question with a frame of mind that is practical not emotional. head not heart. i know that some of our european partners may find that

disappointing about britain. but that is who we are. that is how we have always been as a nation. we are rigorously practical. we are obstinately down to earth. we are natural debunkers. we see the european union as a means to an end, not an end in itself. europe where necessary, national where possible as our dutch friends put it. an instrument to amplify our nation's power and prosperity, like nato, like our membership of the un security council, or the imf. we understand there is a close relationship between the security and prosperity of the continent to which our island is tied geographically and our own security and prosperity. and in the week when we commemorate the end of the great war and in the year when we have the 70th- marked anniversary of the liberation of europe, how can we not? britain has could you be due to

the full freedom that european nations experience today. across the continent, in stone cold cemeteries, lie the remains of british servicemen who cross the channel to help subjugated nations throw off the tyrant's yoke and return liberty to her rightful place on what churchill called "this noble continent." today we continue to play our full role in european security and in global security, fighting policingflying missions over the baltic states, contribute into nato operations in central and eastern europe. saving lives and busting them the people smugly rings -- mugglsmuggling rings. spending 1.1 billion pounds of -- to the region's of syria more than any other european nations. britain has always been an engaged nation because we know engagement is the best way to protect and advance our economic

and national security. today, as we confront fresh threats and dangers to our country, i am in no doubt that for britain, the european question is not just a matter of economic security but of national security, too. not just a matter of jobs and trade, but of the safety and security of our nation. equally, when europe and the european union accounts for half of our trade, it matters for our economic security that the european union is competitive and succeeds and promoting prosperity for its members. just as it matters to us that, while we are not part of the never willn my view, be, the eurozone is able to deal with his problems and to succeed. if it fails to do so, we will not be immune from the side effects. that is why almost three years ago, i set out the case for reform, reform that would benefit britain and benefit the entire e.u. i was clear that britain gains

advantages from her membership of the e.u. but i was also clear that there are some major problems which need to be addressed. political leadership is confronting these problems, not wishing them away. if we ignore them, history teaches us they will only get worse. let me explain what i mean. in my bloomberg speech three years ago, i said the european union faced three major challenges. first, the problems in the eurozone. they need to be fixed and that will require fundamental changes. second, a crisis of european competitiveness, as other nations across the world soar ahead and europe risks being left behind. and third an gap between the e.. and its citizens which represents a lack of democratic accountability and consent that is felt acutely in britain. these three challenges are as

critical now as when i first set them out. today, i would add a fourth. as we have seen across europe with the question posed by the migration crisis, countries need greater controls to manage the pressures of people coming in. and while in britain we are not part of the borders agreement, so we have been able to set up our own approach and take refugees directly from camps, we do need some additional measures to address wider abuses of the right to free movement within europe and to reduce the very height -- very high flow of people -- manus: prime minister david cameron speaking at chatham house on his letter to the e.u. in terms of his negotiations for our new relationship and united kingdom with the e.u. just finishing as we step out of it, saying the country need greater control over migration. this is very touchstone of the argument that cameron would

make. let's bring in our political correspondents. joining me as well to talk this through. let's go to you, first of all. diversity is europe's and britain's strength. flexibility is something that one needs for europe and for britain. quite an open speech. just touching on the migration question. svenja: yes. i mean, this is going to be a sticking point not just with other e.u. countries but also at home. there is not a majority opposition to britain staying in the e.u. but it is still pretty sizable, and they are going to seize on every opportunity to show that david cameron is not getting reforms that he seeks out, which is why he has resisted setting out a list for so long. the other issue which you brought up, which i thought was quite interesting, is the idea of national security. this is a reminder that david cameron wants britain to stay in

the e.u. and that is what the government is campaigning for. he has got to please his european partners and he's got to please people at home. manus: thank you very much. any other headlines that come across the bloomberg terminal, we bring them out to the viewers as our morning goes along. our political correspondent. let's bring back in didier st. georges. as that speech continues, i want to take your mind back to other issues, one of which is china. the deflation threat. i think this is paramount. cpi missed. u.s.a., inflation expectations the lowest on record for the next three years. bank of japan delaying. deflation, global deflation is very real. didier: it is very real. we had a team in china week ago. in thaten investing country for 25 years.

we wanted to check as we do twice a year on the ground what is really going on. and what the team came back with was the confirmation that the industrial part, the balancing story that everybody is aware of, the industrial park keeps slowing down, which creates huge overcapacity. and the very strong impression they got was the fact that to deal with that overcapacity instead of closing it, which would create social problems would try to export it. that is a source of major deflationary pressure across the rest of the world. so i'm afraid that the kind of triangle you are talking about is not the -- the past. deflationary threat started with the -- aftermath of the great financial crisis. now it is very much about the say china deals with it overcapacity in the industrial sector. it is very real. manus: that threat transfers itself globally from an

investment perspective, what does that do to the rate story? it's a deflationary threat would push more pressure on the european central bank to ease, which delays the u.k. is that pro equities? it is. ironically, short-term you can see that the investors consider that bad news on the inflation front remains good news on the monetary policy front. that creates two issues. one is immediately the fact that a number of companies are losing margin. it is very clear in the u.s., the marshes were very high and the margins are starting to shrink. -- the margins were very high. on the cost side, sellers are starting to go up. side, they keep suffering from deflationary pressures. you have an issue with corporate margins. when you are an investor, you have to make sure that these

stocks have pricing power. manus: we are going to have to draw lines under it. mr. cameron -- stay with us. we will talk mont clare. ♪

welcome back to "the london.ive from i manus cranny. your top hotlines. david cameron has set out his demands on the european union membership debate. he wants to negotiate on four areas. the top is controlling migration and tightening welfare. he sent a letter to the e.u. president, formalizing the process. a left-wing coalition is poised to vote.

portuguese prime minister out of power today. that raises concerns about spending cuts tied to the country's international bailout. which might be rolled back. the firm that runs india's biggest airline indigo rose as much as 18% on its trading debut. raised -- aviation after pricing of the top end of the market range. it is the first ipo by an indian airlines has 2006 and comes after south korea's airline searched 60% on this trading debut last week. alibaba 11 last year, sold more than $1 billion worth of products and three seconds. the sales march the start of single day, an obscure holiday which snowballed into chinese consumer phenomena. let's be to emily cheng. she's the anchor of "bloomberg west." great to have you. lovely to speak to you.

i think this is going to be a whopper of a day. came frfoom nowhere. emily: a whopper of a day. it came from nowhere. alibaba invented this "holiday" in 2009. it is called single state. a reaction to valentine's day to encourage people to buy stuff for themselves, which i am a huge fan of. i am here in front of the water tube, the olympic venue where michael phelps won all of those gold medals. alibaba is about to kick off an evening gala. this is a four hour event to kick off what has become the biggest shopping day of the year in the world. dwarfs black friday or cyber monday. last year they sold at dollars worth of merchandise. this year is expected to be bigger than ever. the china post estimating 760 million packages will be sent on single state tomorrow-- single's

day tomorrow. manus: you know what i find fascinating. is that the -- olympic park? emily: yes. this is the water cube that you saw 2008 were michael phelps won i believe eight gold medals. i was actually here in 2008. i came here to cover the olympics. i will say they're a summary things about beijing that never change for so many things that change so quickly. the city is almost unrecognizable for when i was here five years ago. manus: we have got a couple of other things to touch alibaba -- they have just done a deal, haven't they? emily: they just bought yoku, $4.8 billion. you can think of it as a youtube of china, accommodation of youtube and netflix. part of the strategy to reach people not just on their desktop but on their phones. 350 million people actually watch content on their phones.

450 million access online video contact in china. jack ma's very interested in hollywood studios. he's interested in buying more content. part of alibaba multiscreen strategy to reach users not just on their phones but on their pc's as well. manus: i want to let you know because i know you have clicked on a special gift for me. i'm going to be at home in the afternoon every day this week. so feel free. i'm happy to get amazon to drop by. i could do with a new watch. . luxury watch emily: if you're coming to beijing, i will buy you an air purifier because the air is the worst i've seen it. that is expected to be one of the hot item selling on singles day tomorrow. manus: there is a phrase -- go shopping. emily chang joining us live from beijing. make sure you stay tuned.

2:30 london time. tomorrow emily will sit down with alibaba founder and chief executive, none other than jack ma. you get it all here, you get it all first all on bloomberg. now, let's talk more about luxury. montclaire, third quarter earnings beat estimates, revenue coming in at 26% higher for the first half. we are joined by the chairman and ceo. from milan. fantastic to have you with me this morning. great set of numbers. i believe you raised the expectation for revenue and for profits for 2015. when i look at your business and i look through the numbers, you are doing amazingly well in the united -- in the americas, likewise in asia. is that when going to see a continuation of the growth story versus the european story? ourctually, you know,

strategy is very clear. we start with europe because we were born here. the company was founded six he five years ago in 1952 in grenoble. then we decide to open stores for our retail. we started in asia because actually japan was our second market at the time. and we moved to china, hong kong. ad became like int 2010, united states moment. we started to open our aspen store. the luxury ski resort. then we go to new york to the united states is very important, very, very potential. we opened a few stores last year. we did very good, actually. united states is very good, especially new york. we are going to open soon our flagship on madison avenue next year. i hope september-october. i think that it's a very

potential market. talk about china. we have 26, 27 stores. we don't want to sell too much there. we want to build up a brand perception, a strong band, but i think it is important -- a st brand but it is important to follow the chinese customer around the world. manus: that is an important line because the other luxury chiefs we are the pleasure of talking to have said the same thing. i know that you are building, you just talked about new york avenue flagship store in japan. talk to me about building that physical business. because that is six to percent of your business, of your revenues, owning your own stores. your business.f if i said to you, what is the target over the next five years? because buying space, getting premier space for a premier brand like moncler takes time.

what is the ambition? end of 2014 you had 134 of your own branded stores. overwould the target be five years and how many more can we expect in japan? >> you know, very carefully we just opened a flagship. we care a lot about the business. the energy comes from there to be the best in stores, very strong energy. we are in the middle of the best brand, the best customer. i care about wholesale. japan is very strong for us. it is one of the first markets. i think it helps us a lot to improve our brand perception. up till now we have basically stores, shopping department stores. now we have our flagship, 500 square meters. we can really talk with the customer in the right way. and i think, you know, this is the strategy -- very important

because moncler is jacket company. we did a lot in the last 3, 4, five years. i want to talk with my customer, my client in a different way. flagship helps us a lot. but about the future. for next year, for sure, we concentrate on flagship it going to open london, new york madison avenue. we will open seoul. a huge investment. a lot of work to do. and we do not want to open to many stores but it's to open carefully -- yeah? hello? manus: i want to pick up on this theme, and i get the essence of big stores, beautiful stores, but digital. and this this is a debate. how does the moncler products. you say you want to talk to your customers to it i get there. i want to talk to people who are selling me a jacket at your price tag. my question is digital. how does digital feature in the moncler growth story?

what percentage of revenue are you spending on digital and how is digital doing? what is my digital experience? i went on to the website yesterday, looks beautiful. where does it fit? remo: this story is very important for the young generation. i feel and in a five years, digital will be a huge business for us. it is like 3% of our turnover. we invest a lot. we really feel it is very important for the future. and i think you can talk also with them with a different way when. you go onour website, you feel something different. not only product. we want to sell products. again, when i talked to a customer in a different way we want to increase our brand perception. this is everything. investment a lot of money there but the revenues is not a big business. but i think to have a new

communication, new advertising, new way to talk with the customer, you must need digital for the next 3-4 years. manus: i saw the sneakers and the new rucksacks, both of which look pretty cool. even i think i would look good in those. i love the jackets. they feel like real money. and they are real money. what are we going to broaden the products by some of moncler? you have got that hats, sneakers, rucksacks, and jackets. what is going to make the most money going forward? is it still the jackets? remo: the company was the first of down jacket in the world in the french alps. this is the dna. having said that, with a strong possibility to improve that category. i feel that is very important for us for the near future.

the facility and our company really concentrating in knitwear and shoes. shoes can be very strong again. shoes is really something of a long to our roots. we want to invest first in the industrial part and then to have the possibility to again to talk with the customer, because we do not want to make a total look of everybody other. we want to make category, icon products, good quality, good price relationship with the quality. i think this is our future. with these three categories, i think in the midterm we can make a really good business and make something different than now. sneakers. sold on the i look forward to write exclusive inside the store when you open here in london. chairman nco of moncler -- chairman and ceo of moncler. thank you for joining us. fitch downgrades volkswagen. adding another dent to the

carmaker's reputation. we talked to the senior director for the ratings agency next. ♪

manus: welcome back to "the pulse," live in the heart of the city of london. these are your top headlines. vodafone reported earnings that beat estimates.

the companyrkets, raised its guidance for the year forecasting annual ebitda of 12 billion pounds. trading higher by 4.3%. consumer prices in china rose by 1.3% in october am a falling from the last months and missing animus -- missing analysts estimates. the data signals that policy makers may need to act again to ease deflationary pressures. volkswagen is going to give u.s. car owners $1000 in a gesture of goodwill. the news comes as the automakers debt is downgraded by fitch ratings. h says the diesel emissions testing scandal raises questions about management, internal

control at volkswagen. we are joined by the fitch rating senior director. he joins us on the phone from barcelona. great to have you with us this morning. what are the single biggest concerns? youtalk about management, talk about controls pick give us a little bit more detail on what those concerns are. >> yeah, sure, good morning, everyone. i guess for us, the rating action was driven by a commendation of what you call the internal control issues. in general, that would be corporate governance, whether you call that management problems, whether it is internal control. a combination of quality factors. evenedition of qualitative quantitative factors that led us to downgrade this company by two notches. find: this is where i difficulty sometimes. did it take a scandal for you to understand that there were corporate governance issues at volkswagen? >> n o, absolutely not, actuall.

we always said in our previous commit occasion, the report and every thing, that corporate governance, again, this general approach of what the management would do, what the supervisory board will assess, that corporate governance was weaker at volkswagen than any other peer. so, definitely, it is something of a concern we have. the new scandal put this under the spotlight. we understood or we knew, of course, before that this could come to a scandal of this magnitude, of this extent. this is the scandal now which is the key impact on the ratings. manus: you also have a negative outlook. you now know what is underneath the hood within the former governance of volkswagen. it is important to say that this

is the reality of former governance. you have a negative outlook. the scale of financial liability. what are you modeling? what are the extremes? you are there to model the extremes. what is the extreme scenario of liability in your estimate for volkswagen? >> to be frank, it's anyone's guess. i guess we are speaking about 10 billion, 20 billion, 30 billion or more than that. in our case, we try to assess and make assumptions about what would be the impact on the capital structure, on the free cash flow from various scenarios. at this point, it is totally impossible to guess what the regulators do, what would be the customer reaction. what will be the legal claims. i guess the lawyers everywhere have a field day now with trying to make the totals of the potential -- fines they can

extract from volwagen. it might range from 20-30 billions of pounds or euros, but it's going to be substantial. it will impact the company. this negative outlook is a question of billions of euros. it is difficult in point a hard figure. manus: obviously, when we try to understand this story as it we have litigators, there are sovereign wealth funds. that whole volkswagen stock. in a state of shock. there are customers. the potential financial liabilities. we look at the three families. customer and, the the institutional investor. where is the greatest risk for financial liability for volkswagen? >> i suppose it would come from

the legal claims. there will be, well, there will lawsuits now whether it is in the united states, whether it is in europe, that will impact the ability of shareholders to get money back from the company. discomfort has to invest a lot further to improve their r&d, to improve their ability to meet the requirements. the lawsuits.e of course, the three components, the main shareholders, will all have to, well, subsidize the company at some point. it might be coming from the state, from the german state. this companyet fail a few years ago. they might be involved at some point in the future. this is coming to potential bankruptcy. i'm not talking about bankruptcy here. the rating that we have, ddd+,

still means that the company is quite solid. at some point the future, everyone might be involved. whether it is the family's, the state, the lower saxony state or the german state. there will be involvement of all those constituents in the financial strategy of this company. atus: the senior director fitch ratings on volkswagen. thank you for joining us. up next, we are going to wrap up the chart that mattered. including vodafone. it does. slightly higher numbers. ♪

manus: tom to chart the market with who else, mark barton -- time to chart the market. mark: disappointments continue with consumer prices and producer prices coupled with the prospect of a rate hike in the u.s. in december. investors have a lot to ponder today. get an app at have a look at the msci. it's fallen for a fifth consecutive day. last tuesday the odds of the u.s. rateh ike 450%. odds of a u.s. rate hike were 45%. now 68% " . woe in china, means woe on

metals. sunday's trade data highlighting the darker picture for industrial metals demand in china. by the way, this metal has sunk 37% this year. have a look at vodafone shares. revenue beating estimates. service revenues to be exact. markets in europe rebounding. demand for mobile data in africa and india is surging. a bit of a boost for vodafone. it needed a boost after talks to merge various assets. liberty global disappears in september. vodafone jumping as much as 4.4%, the biggest gain since august 27. manus: stay with bloomberg television. i cohost is in new york and she is revving up for global "surveillance" we are revving up to speak to the ceo at vodafone. on the back of those results,

all of that to come with mark barton and the team. for those listening on bloomberg radio, the first word is up next. francine and tom, take it away. ♪

>> no mission is impossible. david cameron unveils his plan to -- new membership. as chinese slowdown emerges -- continues to decline. the question for investors is when people in china will act again. key merkeled by advisor. good morning, this is bloomberg surveillance. i am francine lacqua with tom keene. tom: