i'm caroline hyde. >> i'm ryan chilcote. >> i'm jonathan pharaoh. -- ferro. have dider does not you completed yet. here with more is ryan. -- they don't have the deal done yet with fiat. 41.5% in their actually only paying $1.75 billion. the remaining is in installments. it's not everyday you can buy a carmaker in installments. just 13 days ago, he was saying he was prepared to pay $4.2 billion and we had this ipo. was about price discovery. basically, the results of the ipo was looking at a $10 billion or $11 billion valuation. paying $4.35 billion looks like a fair deal all things considered. >> money strapped chrysler will have the deal but what does it mean for the leader of this group? >> he's been working on this for the last 10 years ever since becoming the ceo of fiat. he tried to buy gm europe then he went all over to try and win that deal and they decided they would not sell. this was plan b. sincebeen working on it 2009. it's very helpful for him in the sense that fiat is still lossmaking. he can still use this plus get access to the cache file chr

here with more is caroline hyde.seems that this was one of the winners over the christmas period. >> that is where their strength was. phenomenal numbers. that is why shares are at a record high. profite raising their guidance. they have come out with sales up. up 21%. if you're looking across the board, they are up almost 12%. that is three times where analysts had been expecting. this is trouncing the competition. ubs says it was a promotional bond fight. next didn't are taken that. overall they are seeing improvements across the board. they are giving money back to the shareholder. >> you talk about this non- discounting policy. how much did that help? a talked about how they are left with so little to clear. not only did they not discount, but they don't seem to have a great deal of stock to shift. >> people were just buying right up until the last minute. you can order on catalog or online. they had a lot of footfall in their just days before christmas. they didn't go for promotions. they give clarity to the ove

caroline hyde is in paris. take it away. hour.s been a 24- full of headlines. >> you are right. i was there at a press conference. it kicks off that -- kicked off at 4:30 yesterday. they got impatient as he tried to sell to the french public how he will turn the economy around. all anyone really wanted to know was what will become of his supposedly first lady. she has been in a long-term him, but notith married. what of the allegations of the affair with a 41-year-old actress question mark -- typically it was the first question that was asked. will she remain first lady? [speaking french] his or her in personal life can go through ordeals. these are painful moments. i have a single principle. private matters are dealt with in private. no answer coming from the president's first lady. no answer about whether she will remain a first lady. she said she will give an answer by the trip to the u.s. on february 11. the fact that he is not clearly sticking by her -- everybody has bes suspicion that he might finding a new first lady. >> he refused to give much clarity on his personal lif

caroline hyde joins us with details on that incident. what caused this extreme action?s pretty extreme. companyt year ago, u.s. said it would close this factor in northern france. it was after five years. they were talking to unions and it disintegrated. they have got to shut it down. that sparked demonstrations outside the headquarters. they said it escalated into violent protests by workers that injured police. it heated up again when two executives were taken. one in hr and the other the manager of the plant. they were allowed to keep their phones. it was civilized, but it was about demanding negotiations for severance packages. two days later, they were let go. the union that represents the workers said they cannot occupy the plant. and the protesters said the show was just beginning. begun the show has just when it comes to hostage taking. this is not the first time in france. it is quite common. >> it is quite common. international was look to -- >> to buy portion of that plan. >> there when the bail out the plant before the big spat happened. they were claiming t

here with more is caroline hyde.lowdown in china, the role of the asian shopper in europe, all of that very much topical. >> still front and center. last year we saw the slowest luxury sales across the entire industry. to bain andording co.. a large part of that concern has been about chinese consumption. we are speaking to some of the big players in italy. which is a maker of men's suits, they are worried about the chinese buyer. they say they are still not spending. , we don'tclair saying see the need to push too much. i want to give you a clip of what the chief executive of ferragamo told us. they are focused on shoes and bags. he is saying, italy is still a beacon of style for the chinese. the asians are really now [indiscernible] it will be an opportunity. still feeling pretty confident and it is going to be the smaller chinese where you start to see the ramp-up in demand coming. >> and monday was a big theme in italy last year. makersalian the jury value their independence. >> they do. the likes ofsaw with huge

caroline hyde has all the news.again. >> only october the first was his first day on the job and after three months he is gone. reasons, heersonal said to the market at the end of closing play yesterday. he's going to stay on as a development director. he has some assignments he is still responsible for. for the time being it is the chairman that is going to be the interim ceo. he knows the business well. he used to be chief executive previously. there is speculation as to the reason why he has left. there wereying disagreements about how to tackle china. the potential slow down there, was it shipments slowing down in china at of the new year? maybe that is why the chief executive has stepped down. at the moment, we know it is just for personal reasons and he is staying on in a development director role. this further clouds the shares because there is going to the internal distractions. and it is a tough time when it comes to the cognac market. be considered as part of the story. >> exactly. tenure, weinto his saw a

caroline hyde is outside the palace. difficultg to be very for him not to talk about what everyone wants to know, what is going on in his private life. >> you are exactly right. politics in focus. francois hollande will be walking into the policy -- into the palace this morning. parliament, a member of the socialist party, and also on the finance committee, thank you for joining us. this is a crucial press conference because he will talk about the economic policies he once the layout. willu think the questions be a bit distracted, talking a bit about his private life? >> in france, people outside the country are surprised but we are not very interested. i would say french people do not care about the private life of political persons. i think this will be sweep golf very rapidly during the press conference. more of a focus on morning headlines to dominate in terms of economic policies. if you are in france right now, what can you expect resident llande to president ho be outlining today? keep expenses for the public sect

let's check in with our european business correspondent, caroline hyde, on microsoft.of market sentiment, pretty much unchanged. the big story of the day, we may now have a name, who you interviewed exclusively in december. >> satya nadella may be exclusively taking the reins as ceo. what does it say about him if they had to look at more than 100 candidates? does it cast a little bit of concern that they were not as inspired by the internal candidates? ericsson ceo, steven e lop of nokia, but having spoken to him, he is so impressive and engaging. he is such a gentleman. myself at refreshing some of the dance moves of steve ballmer. he is shouting and sweating profusely. that is not what satya nadella is going to do. it will be a big change. of course, bill gates could step down as chairman as well. >> or he may dance on stage. we will see. knows? >> thank you so much. stay with bloomberg tv. guy johnson and i are back with "the pulse," coming up next. ♪ >> pub politics. prime minister camera and president hollande seek closer ties, including a deal on romans. then the

i am caroline hyde. breaking across the terminal.o intend to make an offer for vodafone and we were -- running a story earlier. talking to regulators about potential takeover with the vodafone off. >> it is no surprise was that at&t has made it clear they are looking across the atlantic to make purchases and they want to expand their market. you have sprint and t-mobile really hitting them hard in terms of price and in the united states. they wanted to come to europe and much speculation with the vodafone. maybe some other european companies. >> when of the story first broke at the end of october according to people familiar, bloomberg ran a story. a statement has been released that has quashed speculation that an attempt to make an offer for vodafone. our international correspondent has been of the story this morning. hans, quashing speculation? >> it looks like the speculation the at&t is going to make a bid for vodafone is over and it looks final. that makes them beating in and davos all thatin more important. what did they talk a

overall, very little heat in the market. >> thank you very much indeed, caroline hyde.ll do,, -- still to fashion week moved to milan. he speak to executives about the industry next. ♪ >> welcome back to "the pulse" live from bloomberg's european headquarters in london. i am francine lacqua. >> i am guy johnson. tope are the bloomberg headlines. >> iran agrees to curtail nuclear activities starting january 20 under a deal with world powers. in return iran will benefit from some sanctions relief and the start of the 6-12 month timetable to reach a permanent accord. >> protesters have begun blocking major roads in bangkok, adding pressure to prime minister yingluck shinawatra to resign. the demonstrators have cut off access to a government complex. >> a bloomberg exclusive for you now. sergio ermotti says ubs won't spin off its investment bank. he says the current model is working. stephen engle spoke to him in shanghai. >> their airyou and. the investment bank -- there are no speculations. the investment bank is very strategic for us. the strategy is working and is focus

caroline hyde is here to tell us more about their ambitions. they need to deliver more products. >> let's talk tech. this is front and center to what this company is. it is a technology company. it has developed its own software and build distribution centers that are state-of-the- art. it has managed to use the most cutting-edge gaming technology to build 3-d replicas to start delivering your groceries in the most fast, efficient, cutting- edge manner. haveechnology that they bill, that software, can be licensed to other businesses. oft is why investors, some the savviest investors on the street, have got so excited about this stock. that is why they bought big stakes in this company. that is why we saw the share % last year. 410 they are at a new record high this year. it is all about the potential to move away from groceries and into other areas of retailing and not just in the u.k. as we mentioned, they have morrison's under their belt now. but they are looking abroad. the chief executive saying, we have been inundated with queries from com

caroline hyde will go through the story in a second. do you like tech?s it something investors should be looking at? theech is enormous cash-rich. it is quite hard to value the bunnies when a quarter of their balance sheet is cash. it is also hard to work out what the volatility should be of those assets. how well truncated is it? having said that, some parts of the tech market are trading on 10 times earnings and have consistent profits. other parts of the tech market are on 20 to 25 times earnings like google. of thegh valuation and spectrum is similar to other spectrums which we would call the quality theme. you have high-quality tech, high quality consumer discretionary. in some cases, those are well over twice the market average. as a group, that is the same bubble premium that japan had when it was a bubble in the 80's and china had with it was a double five years ago and when tech was a bubble in the late 90's. all of these premiums eventually subside. not necessarily with valuations coming down. it is just that if you are invested in those high-q

caroline hyde has more.tition continues to hurt sales at htc. >> it continues to be the chinese rivals, lenovo, huawei that are just eating into the market share of htc. cast your mind back to 2011. htc was the biggest smartphone manufacturer in the united states. it had a quarter of the market. the fall from grace has been phenomenal. sales down 29% in the fourth quarter. they're forced -- first full- year loss. of this fierce competition coming from the likes of the chinese. even the sales of its stake in beats, the headphones maker, it earned them $265 million but that wasn't enough to offset the loss. >> the company has been trying to turn things around but so far no luck. >> you mentioned iron man himself, robert downey junior was employed. he has a two-year contract to be in advertisement for this company. to change the adverts on your screen now. a hot tea catapult? it was just trying to get a cool factor back for htc. that plus the new product hasn't been working out. this is the biggest phone to dat

caroline hyde is following that story. morning. caroline, let's begin with you. there is another addition to the list. layer herecomplished it is a fast game that has -- player. it is a fast game. a big overhaul at microsoft. they're bolstering sales and focusing on devices and services. bob gatesmer and still remaining on the board of the company. gates still remaining on the board of the company. >> thank you. we are talking about this in -- they areet calling it the air-apocalypse. we had residents in beijing waking up to yes, another dark winter warning -- morning. i will be back with more. >> thank you. >> up next, sugar is in the spotlight. regulators are trying to crack down on the sweet stuff. should businesses be worried? peppersmith ways in. >> i would look at her rise from teenage cover girl to fashion icon. -- we look at her rise from teenage cover girl to fashion icon. ♪ >> welcome back to "countdown." i am anna edwards. >> i am mark barton. toerts are describing sugar tobacco because of the negative attention it has been attracting. let's bring in t

here is our european is this correspondent caroline hyde. talking about the success of games consoles on the cloud. >> it has been paying off. the strategy. the hardware is paying off. xbox one slot the shelves. >> they overtook sony. >> the lot -- they won out over the playstation. also the move to cloud computing, with ibm. microsoft was quick to catch up and has made inroads. sales have increased. we saw a record sales of $25 billion. profit increased five percent. many thought it would decline. have office 365, the cloud, your data being stored on the internet. that is winning. but saless it xbox, of its tablet has doubled. they had to take a charge because it did not work. device units up 68%. that overhaul at microsoft is starting to read dividends. we are seeing one of the biggest transitions in a decade. after stevearch ballmer said he will leave in august. >> any idea? >> this is the big question. we have the main cravers -- players. such an ella -- satya nadella. vesper --op and hans vesberg.op and hans the cloud business is on the

. >> let's get to caroline hyde. what we want to know is the private life. >> it is. atitics meets private life 4:30 p.m. will face theande press and allegations swirl about the love affair with the 41-year-old actress. and isaking a u-turn looking to embrace business. extreme measures for extreme times. we have a 16 year high. four unemployment -- for unemployment. will have a look at what is ahead for the all-important talks later. >> thank you so much. in paris with the very latest on the president. >> we are watching u.s. retail sales ahead of.the vote -- ahead of the vote. they are both hawkish in their views. u.k. inflation could go back to 930. the futures are lower and asia and the topics markets hit the lowest levels in five months. european equities are lower and let's give you a look at what is driving the core markets. lucent is more cyclical and lower their. -- there. you have a big italian day and we thought we would keep that up. lower,e the banks generally, in italy this morning. retail sales will come out later today. retail production will also rise

here with more is caroline hyde.here is a mobile metric which everybody cares about today. >> how much of that advertising revenue comes from mobile? intohave made that move mobile. the dp percent of all of the money they get in advertising comes from mobile. 50% of all the money they get in advertising comes from mobile. users useters of facebook on their mobile. this is why there was sharing it there. this has helped push sales up 63%. look at that screen. up 8-fold. they were worried of scaling back the amount of ads to receive on facebook, when you look on a facebook page, you have a wealth of newsfeed imaging pictures of your friends and updates. they said they were going for quality rather than quantity. -- they didd they not get as much money in the door. this is why profitability is up. they could become an even more dominant force. you could see an increase in their market share. of course, there is a concern of the business model. they are wondering whether teenagers are spending as much time as they used t

i'm caroline hyde. central-bank -- india's central-bank unexpectedly raised rates.ore on the unexpected hi ke, talk us through the increase. since the time that they have -- septemberto the 2000 13, almost every time he has managed to surprise with decisions. , 42 out of 45 economists polled thought that he would continue with the rates. he has gone ahead and increased the rate to 8%. does not come as a surprise to several of the economists. one said that this is a good, cautious step. they will continue to address the inflation risks resolutely even if the gdp slows. quarter -- and concerns regarding the economy will continue. inflation atmain this point in time. they have also clarified that keeping in mind the current -- off the inflation they see, there may not be a need to it again increase the rate in the near term. he is taking a hike right now but he is also indicating that for now, maybe they are done with hiking rates and it will be a longer pause in the future. what else have we picked up from them? that is going to be a key concern for the reserve bank g

caroline hyde is following unilever and david tweed has the latest on sap. what is the take away? >> he is sounding upbeat. in sixe up the most months on the back of underlying growth and that is in the underlying markets. it is a tale of two worlds. andemerging markets are up the key driver is latin america and china for growth. the growth is easing and that was put forward to me by the chief executive of unilever. they say it will be more sustainable growth in the emerging markets and what will not have growth is the developing world. there is weakness there. fiveso saw, in europe, years ago, it would take 10 years for europe to recover and to expect another few years of slow and sluggish growth. -- happy onnt on the whole. forward ate looking the opportunities and the alternatives. and ourve a purpose sustainable living plan. it has an environmental impact. it is planning to work for us. the challenges will be the it isic challenges and being challenged. >> they innovate and improve the margins. they are improving profitability and coming up with new and clever ways of doing it

here with more is caroline hyde. still no growth?> 18 months in and she is managing to get more people visiting the website. they got more than 80 million average users per month but advertises a not responding. more andike google facebook. even though in july, young will actually eat google in the amount of users it's got, advertisers are still not being leeward -- lured. their share over to digital advertising business is not good -- much slower than the market is growing. they are expected to increase the digital advertising business by four percent this year and that is about one third of the pace of the entire market. i think the key line is that concern to many those of selling the shares was the concern is -- it will take years for yahoo! to reach a desirable level of growth. stagnant sales in the fourth quarter -- growth of less than three percent. sellt is up but having to -- it is all down to their holdings and their holdings in japan. -- they are seeing sales up 21%. months in, marissa mayer has been in the job, tell us ab

more analysis is our business correspondent, caroline hyde. they do it again. >> for the 36 time.t has been nine straight years, back-to-back quarterly gains. the market has been expecting a decline. they are really bucking a trend, but king estimates as well. some fascinating facts. 100,000 turkeys sold by sainsbury's over christmas. essex,re in at six -- in one million pounds taken in one day. taste the difference, the more upscale range, did particularly well, as did the convenience stores. sainsbury's local, i know one just opened up by me. they ramped up 15%. they are opening one million square feet of new space. raining back their actual scale on the high street. a more just seen polarized market. you have lidl saying it saw its most successful year in history in the u.k.. half the u.k. population are shopping at the discounters. isertheless, sainsbury's still managing to do well and stealing market shares. about theust talk u.k.. is not that optimistic is it? >> you are right. we get numbers from tesco. shareactually seeing prices climbing on the back of saint very -- of sa

caroline hyde, thank you. anna. >> no napping.es until surveillance takes to the airwaves. tom keene is here to tell us what is coming up on the program. what are you looking at? you have got some slightly warmer weather coming your way. really something, i grew up on the edge of canada and north -- western new york. there. normal for up this is extraordinary. most extraordinary was how the cold reached south towards the gulf of mexico and into texas. austin, texas, that is where the university of texas is and where the acclaimed sxsw conference is was a 12arch, there degrees above zero fahrenheit for austin. that breaks today, we are going to break down the future of media. craig moffett will joins us, he was with stanford bernstein and now has his own shop. the most interesting guy on the block, john malone. you know him with cable acquisitions, talking to moffett about malone. now we will talk to robert d ahl about the track record he had for 2013 and his view forward. a, equities he is long. very cautious on gold. bob doll why

for -- caroline hyde is in paris with more.f weston's fend about his personal life. -- questions about his personal life. a member ofk with the socialist party. she is also vice president of the finance the mission. thank you for joining us this morning. are you worried about how much issues to do with his private presidentistracting hollande from setting the agenda in france? >> in france, we are protecting the private life. that has always been the case. , this is a principle on have greath intentions. i do not think he will be distracted by what has happened today in his private life. he has direction. our main need for economic issues. rather than private life. >> you do not think it is eroding his credibility among the french electorate? look, we seeve a that the french do not care. maybe it is the french spirit. i do not know. private life is private life, even for president hollande. >> it is a painful time for him, as he says. he is trying to have this new agenda within the community. what did he say that was new yester

caroline hyde joins us with the latest. richemont sales figures came out this morning.o thets trend of women buying more jewelry for themselves. >> shares off by 2.2%. largely because chinese sales are declining. they are falling. this really disappointed the likes of deutsche bank who expected richemont, maker of cartier, to eke out double-digit growth. we saw 9% growth. you factor in the strength of the euro, and how much that ate into their sales in the u.s. and japan. it really is asia-pacific where the disappointment is coming. department stores are not ordering is much. they are nervous. gift giving. that is what is impacted the most. and don't want watches jewelry being given to chinese politicians. you are seeing a plummet in luxury spending. >> now we are seeing a lot more women being empowered, working themselves, earning their own money, especially in asian countries. >> it is a fascinating trend. it has been marked out since the early 2000's, but it has ramped up as we are coming out of the recession. pay gaps are narrowing. women are wanting to buy jewelry

caroline hyde will have a run down later in the show. the best performing european stock in 2013 was ocado. caroline hyde, two for one in this show. how is the story? talk to me about ocado? what are the ambitions here? >> they are a technology company. if you have been thinking it was retail, you would be mistaken. what has got investors so excited that the share price rose 410% last year so, excited that they are on a fresh record this year up 17% year to date despite never making a profit, it is all about technology. this is a company that has built its own software to have state of the art delivery. at the moment, it is focused on grocery delivery. it can be expanded. they have taken significant chunks, a big stake in this company betting on technology licensing. they feel this company can expand its remix from the u.k. more than 50% of their office staff are actually technology employees. they have been building the software to make it the best in class. analyseses say there is not a retailer or a company out there that doesn't want

european business correspondent caroline hyde joins us now with more details.oday we had an announcement from google that they launched an open automotive alliance. carmakers, general motors is in there, honda, on develop looking to android software and customize it for cars. samsung similarly partnering software thathave will run in car systems as well. why these tech companies falling over themselves? because her market could be huge. we understand that ihs thinks 150 million in excess of 150 million cars will be on the road and connected to the internet by 2020. that's more than all the cars that will be reduced globally this year alone. in fact, we are seeing the amount of chips, the value of chip net technology in each car is just wrapping ever higher. in fact, the value is something like 65% higher than it was a decade ago. the way younating, can get technology into phones. panels willflat allow you to see displays was still sitting to the windscreen. sensors will analyze how you're feeling. you can match your music your mood. of course while analyzing tr

caroline hyde has been talking unilever. she is taking a look at the market. >> those tricksters on their across the we are up stock market. six-year highs. why? china is feeding the frenzy. stimulus, cutting money market rates, expanding their own facilities, stocks driving higher. yen is falling against the dollar or the dollar is rising against the yen. out of favor is gold for the first time off its six-week high. industry group is all about consumer goods and unilever. more on that in just a bit. >> thank you very much indeed. still to come, dr. dre rolled out his music streaming service today. with the headphone market in the back, does he have what it takes to beat out the competition online? we will find out when we come back. ♪ >> good morning. you are watching the polls from bloomberg's european headquarters in london. francine is preparing for vos.no's -- da it looks pretty chilly there. things, of chilly extreme weather will hit washington dc and is expected to cause chaos. are canceling flights to .he east coast

caroline hyde has more on the story. hosted a drop in nine quarters. >> more than two years profit, down eight percent of its sales come the slowest growth for nine quarters as well. a bit of a dismal quarter for samsung overall. they are getting squeezed in the middle. the other top and, apple introducing the new iphone 5s and 5c. they sold more than 9 million of those in september. samsung galaxy for has sold only 4 million in the whole quarter. remember, they signed a deal with china mobile, so there will .e competition the competition coming up in the first quarter as well. the cheaper manufacturers, the ikes of htc and whil -- and they're being squeezed in the middle of mobile phones. that 60% revenue for samsung, also tvs not selling so well at the moment. the only area of growth is about ships for samsung. -- which is where it becomes interesting. >> take a look at the share price. where will all feasting for christmas festivities, many were selling of samsung shares in a big way. they lost $19 billion in market c

caroline hyde joins us. the deal goes through, ibm gets paid -- the deal does not go through, there is a nice kicker as well. vo is having to take it on the chin. they could be havi to pay 8% to 9% for breakup fee to ibm if the deal fails. double whatfee is is usual. if the deal does fall through. ibm is threatening them a little bit. ibm is still talking to a japanese company who might offer them more. lenovo is between a rock and a hard place and they have had to take on the risk. >> why is ibm pursuing this strategy? >> it is nervous whether the u.s. regulators will go through with this deal. they have been talking that it will. novo haveand le tried to make out that they are not too concerned. national security concerns are pretty raised in the u.s. at the moment -- especially when it comes to the chinese. contracts with the u.s. government in supplying service and more profitable maintenance of the server units -- that is where the dubious nature comes in. ensure, it ibm wants to that they are not left

with a little more insight on the story, caroline hyde. all things tech, caroline. talk me through this. is it structural? this is a structural change in terms of demand? >> they're playing catch-up. $28 billion is what they have in terms of sales in the third quarter. not to be sniffed at. that's more than the entire g.d.p. of bolivia. that's latvia's output for a year. but it's less than hewlett-packard makes. sales are down for seven straight quarters in a row. the executives held up their hands and say we're not going to take bonuses, they're so concerned. companies aren't storing their data in service in their offices anymore. they're going to the cloud. they're storing it all on the internet. >> put this in context because you and i had this conversation this morning. there is' not enough business for everything on the cloud. you said look at hit the way, you've got amazon. the sheer volume of what we need. so there's enough pie for everybody. >> we are storing mega data and we have to have the companyity to serve that. they're arresting. $2 billion last year

our european business correspondent caroline hyde is here. home to cartier. >> they are seeing far more jewelry in the americas that the moment. they are also seeing the online retailer getting more shares. america is a bright spot, may be helped by las vegas. it is all about china. china sales to climbing. china gigantic the region far less than we anticipated. sales .p nine percent factor in the strength of the euro, and sales only went up three percent. the reason we are seeing a of lack of because giftgiving. we have been told about this. we are not allowed to drive the politicians. -- to bribe the politicians. jewelry that is suffering the most. , theseier, mont blanc are the things they own. this is why we are seeing such of slowdown. also, watches as well. we are seeing a big fall in the strength of growth. we knew the exports from switzerland into china were decreasing. we knew they were following about eight percent. the stats are amazing. hong kong.o to how are they going to keep up that growth if we are seeing such a fall down in c

business correspondent, caroline hyde, jon ferro and our europe editor, david tweed also standing by. jon, let's kick it off with you. south africa is going to be more in focus over the next 24 hours. >> what we don't want is a repeat of 2012. lonmin today, miners start to go on strike. they want wages doubled. can the miners absorb those extra cost? >> let's get out to david in berlin. you have got the spanish unemployment numbers breaking across the terminal now. how do they look? number once again over 25%. this is a problem for spain. the real issue in spain is structural unemployment. when is it going to start going down? some of these people have been unemployed for more than two years. a lot of them are going off jobless benefits. that is bad for the economy. we have got what tony blair says about it. >> just to confirm those breaking numbers, in the fourth quarter, first in the number --es in at 26 point 03% 26.03%. that is a serious level of unemployment to deal with. staying above 25%, that is the challenge. i am keeping an eye on the swiss company logitech. this is the make

this report by caroline hyde. orders oftraight falling sales for ibm. sales down five percent for the full year. said we are forgoing our bonuses. to put it in perspective, $28 billion for the fourth quarter, that is bigger than last year's gdp. they are just not living up to expectations. the reason we are not growing anymore is companies that work on a general basis don't need service quite so much. totead, we are all looking loud computing. you don't need these huge juggernauts of hardware. we talked to a tech analyst recently who was saying there will still be demand for service , it is just that cloud companies would buy them instead of businesses. what is ibm doing to turn itself around? >> it is trying to get in on the cloud service act. inroads, butng they made a big purchase, $2 billion last year. they are looking to ramp up and steal back from amazon and other countries -- companies that have been leading the march on them. supercomputertson , setting up an entire new business unit. answersly this computer questions in conversational language.

our european business correspondent caroline hyde is here. francine is in davos.aking his head. >> we picked the same story. bible thatd of a everyone has. this is a program for the world economic forum annual general meeting. at 9:00 a.m. we have a workshop. >> it is on meditation. this is a workshop, a goldie hawn meditation workshop. it is how we deal with stress. ceo's this to morning. we had the lloyd's ceo. this morning. cool.greco just said be stress ofot have the making acquisitions. it to the conversation. el-erian of pimco saying he struggled with work life balance. finance whenn someone is resigning it is because of legitimate reasons. >> the one session, we have great sessions. we have the iranian president. this is the davos paper. abouth telling us here theired to allow customers to switch off to disconnect from that funny 4-7. will live.how he when you meditate they say it will help you live longer. >> facebook could die out like the bubonic leg. -- plague. researchers are a socially -- assimilating social media and by desert of users could facebook

caroline hyde adjoint us i had of the earnings. head of the a earnings. >> the biggest problem has been emerging markets. exactly the same for unilever. you have a dove, vaseline. you have maximum. -- magnum. than half of their sales are in emerging markets. the key concern is devaluations. indonesia, brazil, russia has really hit the third quarter. their first warning in a decade. sales the slopes in four years. and they have promised that in the fourth quarter will look promising. it will include strong innovation in terms of the pipeline. and also they will reign some of the products with talked about stuff they have cut some products. some of by three quarters. and the last 13 years, gavin scaling back and focusing -- they have been scaling back and focuson all products that work. of yourd to get rid spread. focus on ice cream in particular. the names we know that we love that are selling well. clearly it had speculation on what could be the cell of some -- sale of some units. how they will come back to the emerging markets? on

the best-performing european ocado.as caroline hyde has the details.lark's most talked technology, that is what this company is. -- >> wes talked technology, because that is what this company is. many are building up significant kes in the company. this is the application of the technology that this company has built, the expansion beyond groceries that is giving people jumping up and down about this company. if you go inside its distribution centers, they have two vast distribution centers, the way in which it moves. they so efficiently managed to deliver groceries which they believe to harvest things to hoffer's online. this is state-of-the-art. theysmoked analysts and have said there's not a retailer out there in the whole of the world that does not want to get their hands on the technology that they have. that is the future, it is about licensing the technology to other areas. >> because they developed it themselves, don't they? is inf their workforce i.t. >> they administer you have cranes inside at 20 miles an hour. they are delivering somebody t

here with more is caroline hyde.nts to break this business up. >> he does. he started with apple, demanding money back to the investor base. now he is turning his attention to ebay, the largest online marketplace. carl icahn saying, look, split it up, spin off paypal. >> this whole business of the divorce between a merchant and management, i think it is hurting our economy greatly. i think it is time that shareholders should have more to say. in the big picture, not micromanaging. -- it is a no-brainer that they shall -- that paypal should be spun off. >> he also suggests that two of his employees join the board of ebay. this all comes as ebay perhaps hasn't been performing as well as many had anticipated. third-quarter sales missed. fourth-quarter sales missed. first-quarter sales forecast also missed analyst estimates. paypal, about 40% of revenues now. it is growing faster than ebay. i spoke to the president of paypal just a few months ago and he said they are making forays into mobile payments. he said mobile is

here is more with caroline hyde. big blue is looking a bit battered. >> look at the numbers, $28 billion in sales in the fourth quarter. that is more than the entirety of the u.s. -- of the gdp of bolivia. it is less than hewlett-packard makes. overall, sales are on a downward spiral. so bad has it got that even the executives are saying that they are foregoing their bonuses. they are trying to appease the investor base out there. the reason is we are moving to cloud computing. companies are starting to store their data on the cloud. large part of ibm's revenue still comes from selling those huge servers. >> maybe it will do that with lenovo. that can be one part of the turnaround plan. the management gave up their bonus. what they would really like to see is a concrete plan to turn this company around. more of an upwards trajectory. atmaybe they are buying time the moment. they have got plans in place. already, they are offering more cloud services. acquisitions, $2 billion last year buying software technologies. th

caroline hyde is that the touchscreen with more. >> a crushing payroll report. 74,000 jobs added in thehas that mean tapering happened too quickly, too fast? is bad news good news? equities are getting a lift from the hope that tapering will not happen. easing that concern that stimulus will be rained to quickly.- reigned too we have the yen gaining against the dollar. the dollar off by 0.8%. lynchf america merrill saying look to 2014 for the euro-dollar. the euro is set to fall, set to we can. -- weaken. stocks are still holding onto your gains. the banks are almost up i 1% -- by 1%. global regulators are giving a stay of execution for the banks. debt limits are scaled-back by committee. that pollution is hoping to drive the bank sire this morning. it's have a look at individual stocks. we have got some movers. we have some movement coming in terms of retailers. we have a profit warning. enhams. retailer.another it posted concerning numbers. dropping for the christmas period, but morrison's is raising money by saving quality assets. analysts say please do not sell the crown jewels quit

caroline hyde is here.optimism in the figures. >> if you are looking at tesco, same-store sales expected to drop. could be flat in terms of non-food sales, closing. it is always a brighter spot as they could see it growing to 2% but down from the previous quarter. getting the picture painted of who the winners and losers are here and just really pointing out here that with tesco, it's likely we could see a continuation of how they are not able to distinguish themselves from their competitors. profitability could be dropping in the second half. in the market share is being eaten into. the discounters are going in at the bottom. they are bragging they've had their best year ever. they have more than 3% growth in the best christmas on record. they are on the top side. squeezing the food retailers and marks and spencer's, of course, dominating across the board and a big win. will they lose the top spot at the moment? >> they had a good christmas. business hereine has clearly been a big driver about what's happe

caroline hyde. bitcoins havef passed $1000 again on the mt. gox exchange after zynga said it would start excepting the virtual currency. they first crossed the threshold in late november and then plummeted. >> look at the volatility there. as theertook toyota countries six largest foreign automaker. the popularity of the ford focus helped them sell faster than any major competitor. >> chinese stocks hit a five- month low on evidence that it he can't ash that its economy slowed in december. the services age fell from the previous month according to hsbc and market economics. >> what do we have coming up for you? the race to create an nsa-proof phone. wanting toysicists supply alter secure devices for the german government. ♪ >> edward snowden has been bad for relations between the u.s. and germany. good for some german businesses. hans nichols now takes a look at two tech companies that may profit as they vie to produce the next secure smartphone. >> before snowden's bombshells, two phones were competing for just one customer, the german govern

caroline hyde joins us for more. first profit drop in nine quarters? >> profit is down by some eight percent but it is also the sales group you have seen in the same amount of time in more than two years. not great figures. it is because they are being squeezed from the top and bottom. apple stealing a market in higher-priced smartphones. the galaxy s-4 is really the flagship phone. by a quarter in the fourth quarter. million in the first weekend alone when it went on sale. we will see what china mobile will do with apple. that will only eat into market share. it is the dominant player in the world but this is a competition from the bottom -- top. you also have competition from the bottom, the chinese companies that are offering much cheaper phones and driving down average prices. you have saturation of the high- end and you have competition hitting sales. this is not only of phone maker. , tv units.isplays when 13 was not a great year for tv sales. chips is the one area of growth. what investors were inspecting, have they been bracing themselves for a

caroline hyde, our european business correspondent, covering the latest from the tech landscape.ve the expected warning from samsung overnight. we're going take a short break. after that, we are going to talk to the french finance minister. france, top of the list of many people's concerns for the eurozone this year. >> welcome back to davos. we're now joined by french finance minister pierre moscovi with his plans. also with me, an he is teamed editor and reporter here at bloomberg. thank you very much for being with us. appreciate the time. last year, growth in france, 2013, flat. 2014 predictions, .8%. >> .9. >> the distinction was worth arguing? >> that's no change, but our prospects on fwrothe forecast is .9, and it was considered as serious by the european commission, by our partners. in a way, i don't care, because it's not enough. i want to do more. we want to do more. this is why president hollande decided to establish a new set of investments to boost growth and job creation, which is the main purpose of our economy. we made strong reforms in the last 20 months as we re

here with more is caroline hyde. they have done pretty well so far. >> they have.were up after-hours. at last, facebook has shown, proved it can make the move into mobile. the key figure for analysts yesterday, for investors, now more than half of their advertising revenue comes from adverts that are placed on the mobile. this is important. this is the biggest social network. more than half of all internet users use facebook. 1.2 5 billion active users. this is what is driving sales up 62%. this is what is driving profit up eightfold. they can really show the quality as well, not just quantity. people were very worried that they were not going to have as many adverts on the newsfeed. they cut down the, of adverts but they upped the price. they upped the price by 92%. companies are willing to pay. >> what about the concern that it was losing support from teenagers? >> this was a big worry. that aalysis shows quarter of all 13 to 17-year-olds have dropped out of using facebook. since 2011, the last three years, the number of teenagers has fallen by a quarter using fa

we have our european business correspondent, caroline hyde, jonathan ferro, and david tweed is also standing by. futures getting a small bounce here. what is your focus? >> i think it has to be emerging markets. you have to say the selloff yesterday did not discriminate. it hit european equities as well. fedt of people talking tapering in the end, but you have got to talk china as well. a china slowdown is the big concern for investors i have been speaking to. flavor withtech microsoft. how did that play out for the european context? >> you look at some of the suppliers, sap might be getting a bit of an uplift. microsoft made per day more than a quarter of a billion dollars in the last quarter. finally, their tactics are working out. they are selling hardware. this is a software giant, killing it in terms of xbox one over the holiday season. a move to the cloud, sales doubled there. they also doubled for the microsoft surface. at last, the move into hardware is paying off. samsung, a different story. still profit growth, but it is lower. they are being eaten into market share. also, the chea

caroline hyde is here with a roundup. are either doing really well or really well but i offering cheaper prices. in the middle, you're kind of stuck. >> the dig for we have been looking at, tesco, morrison's, all those players, they have been crashed by the upper and lower limit. you have the discounters eating into your market share. sales up, we are all going for luxury. spencer's,s & morrison's all disappoint on the high street today. comparable sales fall across the board. growth ass in on the far as tesco, morrison's, tesco's sales down 2.4%. sales down in asia and europe as well. despite tesco investing one billion pounds to upgrade their stores and get us all back shopping there. if you look at morrison's, they are showing a profit warning. sales down more than 5% overall, they say it is very disappointing. they are particularly hurt by online competition. players -- ife elected marks & spencer's, the biggest clothing retailer in the u.k., clothing sales down for a 10th straight quarter. they aren't managing to dra

here with more is caroline hyde. potentialt with the ceo, you met him recently. >> i did, in december. , very softlyng man spoken, interested, interesting. not forthright, not a huge presence. he was very nice, very welcoming. very easy to talk to. he could become the third ceo at microsoft has ever had. this is a company with more than a 40 year history. only ever been led by bill gates and steve ballmer. after five long months, we have whittled our way down from more than a hundred candidates. gone is tony bates, he is not going to be ceo. neither is chief operating officer kevin turner. it could be a man who has been at microsoft for more than 20 years. in 1992.ella joined he is at the forefront of the development for microsoft at the moment. >> benefits in that business ,elped drive the revenues didn't they? >> it doubled in the last quarter. these cloud offerings are growing. since he took over the server unit, he has grown revenues there a 20%. overall, this company is still managing to be a winner in the techn

here with more, our european business correspondent, caroline hyde. was this move anticipated?or to new year's eve, there had been speculation that the cfo might be leaving. shares got a little bit of a push on it. a are climbing once again today. relief that there will be a new person at the helm. we don't know who that person is. new entity will be acting as the interim cfo. simon stepping down, no surprise when the numbers have just been so tortured. warning that we're going to see a deterioration, they have been slashing their prices in the run-up to christmas up to 50% in terms of discounting. that is going to be hitting their margins. it didn't draw in the customers. just a 1.1% increase their. sales at debenhams really shook the market across the board. >> they certainly did. people are asking questions about how much this was a debenhams specific story. we're getting more details on that with numbers from john lewis. >> it could be more of a specific story. john lewis came out with stellar numbers. christmas sales up 7%. they saw what they call a manic monday, the 20 th

caroline hyde joins us. this is a fascinating story.es given to a particular trend of businesses going to a developed market. we're talking about businesses returning to the emerging markets. decide wlg the manufacturer in a developed market setting. >> it is going closer to its client. that is going to be half of the reason. they are looking at the united states. in fact, they are looking at six states are clamoring for foxcon to come to them. the likes of arizona and colorado. they want them to start building plants. that means more jobs and more money going to the state. why on earth would you leave an area where you have cheap labor costs to go where there is higher labor costs? in china, they are having a bit of a labor shortage when it omes to engineering. labor costs are not as low as they used to be wages are going higher in china. they are looking to the talent pool that the united states can provide. they work for the likes of many company. they work for microsoft. they build tablets for microsoft and amazon and provide p.c.'s

caroline hyde has more. > farewell to the c.f.o.errick which had been speculated over the british press. after that profit warning that took the market by surprise sent ebenham's shares down. kennedy is taking over for the interim short-term period. the numbers were so appalling when they came out on new 're's eve. holiday discount. they were slashing prices by 15% at times in the runup to christmas. the time we were all meant to be shopping. no one was rushing into debenhams stores. they blame the weather and the pressure on household incomes and the fact that fewer shoppers were going into stores and were shopping more online. clearly debenhams is being hurt now. there had been concern going into the christmas shopping period that things were getting tough. we have seen increasing sales being announced by some of these retailers. >> certainly debenhams and marks and spencers all had 30% to 50% off. john lewis played a little bit of that game online for the likes of black friday and fiber monday. -- cybermonday. we have numbers fro