Capitalist today in principle. It should be combined with steep , social responsibility. Hello, welcome to countdown. I am mark barton. I am anna edwards. Bloomberg reporters are standing. Y ready to deliver the stories in a berlin, david tweed covers sap. Their earnings are breaking it now. Unilevers numbers. And hong kong to the lenovo ibm story. Its a possible to make a new profits in music streaming . A new company is trying it. Getting earnings from sap, the german company, the biggest maker of software. They all felt fourthquarter results. It is announcing its output for 2014. And 2015. It sees its operating profit this year between 5 billion euros and 6 billion euros. Just slightly below analyst e stimates. It delayed its margin operating target to 2017. It delayed its profitability target and that seems to be the biggest news pushing back profitability target of by two years. It is chipping stemcells from licensing business to program delivered over the internet. They said operating profit at adjusted for some items will probably reach 35 of sales by 2017 rather than in 2015 as previously projected. Lets get contacts for the desk context for the numbers. David tweed from berlin will give analysis. Let us to get context for the numbers. It pushes for more cloud business. Exactly. It seems to go to the heart of the challenge that they face. Traditional Business EnterpriseSoftware Business where it used to go into a company and it would install its companysn that servers. Companies do not want the debt and stalled. They do not want to run the service. What they want to do is download what they need in terms of Business Management software from the internet and this is known as the cloud. They are targeting one billion euros worth of revenue from a cloudbased products. In the last four years, the chief executive officers have been focusing on actually buying ondemand Software Companies like a success factors. The other thing they have been doing as focusing on the new talk or database which is the Database Market for sap. The real key here is whether they have success to migrate the entire sap product range to this this is and if the Management Software customers existing will follow them when they are shifting. If you look at the Sales Numbers which have come out, a drop of 2 for the business in the Fourth Quarter. Most of that has to do the strength of the euro. Sap reports any euros even though it gets a huge amount of business from the United States and asia. We also saw that the sales were weaker than analysts were expecting. Areas,d, in sweeping asia, americas, how is business in asia right now . A little biteen weaker facing stiff competition in that traditional market. What they are trying to do and this is something that topped by an december, they have agreements with samsung for example. To beant samsung handsets compatible with sap software so anybody who is using sap software can use it and axis to easily using and access it easily using their samsung. They are in talks with lg electronics. The same idea. Try to get these people to migrate as fast as possible. Thing toertainly the ask the ceo later when you talk to know. We certainly will. David tweed in berlin. Well have more later when we talk to the cold chief executive officer. He will be the sole ceo in may. That will be later this hour. An update. The french engineering business is guiding the market lower. Theyre expected cash flow and operating margin and they are saying while they produce he operating margin would rise, and now they are sent the operating margin is going to slightly decline. Demand in a number of marks is weaker. It will remain a week in the short term they are saying. Powerre citing a thermal in an area where they are seeing a lower sales. A quick update on alstom. Will let me more for your letter less me more for unilever . It is slightly less any years. They plan to cut the number of products. 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 . One of the issues they face has been to deliver currencies. Some of the emerging market currencies have weakened since may and 2013. In a number of their markets, it is more export expensive for consumers to export. Slower growth. It also have the fact that is more expensive to import. A double whammy. Will not know how they negotiate the cell. They cannot ramp up in the emerging markets. How will they outperform the market . They promised that. They said six percentseven percent to stop they say we will do better. How . Nestle has fared better. Also remember, a third of their sales coming from europe in excess of double figures of the United States, how will they cope . Thank you. We will talk to the unilevers ceo. We will get that interview later on during countdown. Carolina will speak to him. The Chinese Markets is having one of his bachelor days in a month. David joins us. One of its best days in months. First good today in a muscle stop the index the best day in months. Were talking about the index. The gauge. Sentiment about where the economy is heading. The central bank and china is avertng up to overt one of the cash flow issues we have become accustomed to. A longed to china it was holiday coming. Funding is going all. Yesterday, the usual red flag. You can see are your screen, they are back down to 100 basis points. What happened . They announce this trial, the landing facility, that would allow banks to get cash once the rates hit a certain threshold. One week of at 7 . Fromad a positive reaction the market. Chinese banks around the and 2 . Great it is aa good measure because it does sort of provide that a line in the sand beyond what some banks especially the smaller ones can expect help to come. Stocks david, one of the you are looking at is a lenovo. Another deal could be in the works . Absolutely. One of the Bigger Stores this morning. You had a lenovo said to be in discussions to buy the server ibm. Ess of according to someone a direct knowledge of the matter. According to that person, lenovo had completed the Due Diligence process and the deal could be signed into weeks. They did not deny it. They came out with a statement that there are acquisition talks taking place but they did not reveal or give details on who the target was stopped ibm has been talked about also declined to comment. Broadly speaking, it makes sense for both. Lenovo is looking for other areas of growth. Pc sales are down. Ibm is trying to get out of hardware. We will see how it plays out. Thank you. Live in hong kong. Does it in still fact we see them being sold off. Pcs going to lenovo. Maybe servers going the same away. Financing. Brought you music and headphones. Now, he is bringing you curated music. The latest on the new beats music service. They have done it with the headphones. The market is dominated made popular by dr. Dre himself. The market, they have 50 of the premium and. The music streaming this is the its arrival is spotify and pandora. Two businesses that have struggled to make money and offer free streaming music. That is something beatable not to do. It is pay only. 10 a month. Trying to make business profitable. Oneofakind conversation. Billion have to let the prince bill gates will join billionaire bill gates will join in the loop. Flying high in the private jet market. Ceo and founder of the marketplace that is shaking up the trichet the traditional way of chartering a jet. Traditional way of chartering a jet. Time for company news. 3 billion capital increase. It will be the second time in two years the french carmaker raised upon. French phonele of business. Biggest investor. They will have talks often down over the past two years without agreeing on a valuation. Blackberry shares surged the most in a month after the u. S. Department of defense said they will account for 98 of the devices in one of its new networks. About 80,000 blackberries will be hooked up to the systems. Welcome to countdown. I am anna edwards. I am mark barton. The market for chartering a private jets is not one usually associated with the savings. Means essentially what it the Clyde Jackson is the ceo and founder of a victor. The marketplace for chartering a private jet. He joins us. Good morning. Thank you for joining us. Yours is aa does disruptive company. Why are you so unique . Today, customers are looking for trust and transparency in pretty much everything they want to buy and consume. The private jet industry is no different. It is been largely an on regulated industry. We are trying to make that whole process open and easy to consume. Effectively making it easier. There are other websites. They can get others as well as euros for bookings of either a flight with a private jet. What makes yours are different . What we try to do is ensure when you book through a particular path platform, you connect with all of them around the world and you get to see who they are before you travel. The other important thing is you get to see the margin that we charge. 5 . Eep that at a flat that makes that appealing to consumers. That is important. It is a bit murky and chartered jets. Can you tell us traditionally what one would pay in commission . Yours is fixed. In the real world, it is not. Absolutely. There is no application for disclosure. In the last quarter, the u. S. Department of transport made a big push to bring disclosure into the private jet chartering the business. Right now, theres no obligation. Ed and i have to show how much they are marking up a jet. Summers wanted that transparency. We are championing that cause. Consumers wanted that transparency. I imagine you are quite busy this time of year. This is a leaders and World Leaders are arriving in switzerland all competing for landing slots no doubt. Do things get busy around this time of year . Is it difficult . Timesarly, there are peak of the year. When you look at it industry overall, year over year, we are probably up 3 . Across europe, they are all up between single and double digits in the last month. We are beginning to see signs of wear businessmen are flying on the jets and where potentially the coverage is coming. President emerging markets are in europe. Have seen growth in europe. That is really important. You want to shake up the white label production. Clive . Ou, take ae jet owners to bookings from customers and themselves. About 25 . With victor, you get to see exactly who you are booking. If you are a jets owner, it is important to be sure your jet is available. Again, that is i like one of the things you offer. I have never booked a chartered jet. When you book a jet, you have to pay for the jets to return to its original place. You are offering individual seats on the return. Absolutely. That save some money. We are seeing today when people book private jets, there are not always paying for the return. Occasionally, operators will quote a oneway fare and we see that happening. That means it is much more Cost Effective to fly. If you book, you can seller the empty one to try to defer the cost. It is to help people. Clive jackson. More with him. Welcome back to countdown. I am mark barton. I am anna edwards. The market for chartering private jets is not usually associated with the savings. Over next guest is trying to crack that. You raised 5 million. How easy was that . Fund raisingtart a process, you do not know if you will make it or not. We were fortunate that the majority came from people who actually used the service. You founded it is this is just a few years ago in the middle of a global recession. Is that a strange time to start a Luxury Company . Not really. It does not take somebody brave to step out there. A recession,in customers are looking for a smarter way of doing things. If you come out with a Disruptive Technology or Business Model, this creates an opportunity. Anything at Opening Hours at victor or are you always open . Fix it is 24 7. It is 24 7. Doesnt discourage anybody who is not is the more available to those who are not ultra net worth . Increasing amounts of Business People looking back at flying private across europe. They are doing that for business purposes. Effectively would you fly private, it is not a luxury but the luxury of time. You can get to two or three european cities in a day and back home rather than flying commercial. It would not be possible. Buying one to seize a private jets. You can have a little taste of the luxury . A or potentially buying returning aircraft. There are lots flying around. 40 in europe. We are providing a platform to allow people to get that and those really good deals. With the plan in the future . What is the plan in the future . The ambition for 2014 is to sell shares. Ofcomplete our second year 300 growth. Thank you for joining us. These are the top headlines. The united stationers wrists the United Nations or rescinded its offer for iran to join the talks. Are disappointed. More unrest in kenya. Flaming projectiles were thrown at police. Defense. Aimed at dumped its junk classification. [indiscernible] knows that capitalism today should be combined with a steep social responsibilities. That was the founder of the economic form forum. Welcome back to countdown. I am anna edwards. I am mark barton. Heels in expensive we pers goes up to 12 miles hour. It requires great skill. A high in the mountains above , after skierss take their last around. Bashers reclaim the mountains. Worth more than a half 1 million each, these snow creatures make sure the snow is smooth again. Sometimes 18 miles per hour. You work all night and the city is partying, you make it nice for them and in the morning. Yes. Sometimes [indiscernible] until the morning. The peace basher party. Goof the track monsters nearly 200 miles of snow covered paths. It could be dangerous work. To keep from crashing you go with the mountain and down the hill. Put it [indiscernible] sometimes you are tipping over. Or do you ever get a lonely . You are here 16 hours a night. You stop to sleep. You go out. Snow in your face. You keep going. You do that . Schnapps. No alcohol . No. Always. No schnapps. Not always. Schnapps. The sometimes the way you stay awake. Not the coffee. The slope. Always looking for new ways to stay awake. Almost encouraging drinking on the slope. Very irresponsible stop responsible. Bloomberg will be live from davos. It takes place this week in switzerland. Other tricks on the job. Not to dr. Dre. He dominates headphone. Beats. He is turning his attention to music streaming. Today, he launched his beats of music. He is competing against pandora. Is 6 00 a. M. Beats, they have dominated the especiallyector premium. 60 market share. I want to do with the music streaming. They called in to tune into music experience. We have all heard of spotify. Generationis something they want. That is something free. It offers free streaming with the occasional ad. Data Business Model struggles to make money. To make money, you need a big Subscriber Base. A paying Subscriber Base stop a big scale. Spotify has with 4 million users. They only have 6 million paid users. Will not be offering free streaming. This is 10 a month. They hope they can do subscribers on a board. Unes is how itd ty is described. And the technology. I separated this into three parts. Marketing adventure ration. Marketing, they have teamed up with at t. You take out a contract with at t. It is in u. S. You pay your 30 or 40 a month and get the beads streaming service for free for the next 30 days. Yourll take that on top of bill every single month. The extra 10. At least that is what they hope. Analysts said you are forward times more likely to pay if it is on your bill. What is cool is that your ration. They call it the hand curated. There are people there picking sauce. It could be dr. Dre. There are people there picking songs. If you ever use spotify, you click on a song and recommend the next two plates up hand picked without the algorithms. Next to play. Handpicked without the auger rhythms. Algorithms. You saw beyonce released her album through itunes. What is dr. Dre releases his through beats . Call it beats the next episode. It beats the next episode. They do not. Hope [indiscernible] i will buy you a beer. I need a doctor. Dr. Dre and eminem. I am very up to date. Do not miss a 101 conversation with microsoft founder bill gates will join in the loop with the betty liu. That is at 2 30 p. M. 2 30 p. M. London time. Facing off in the course finals of the Australian Open tomorrow. A look at the strategy for the upcoming match. Company news. Lenovo is set to be in talks the lowend to buy server business. They failed to agree on a price a last year. It is said to be between 2. 5 billion and 4 million. Chasing a space craft. Going back to earth after a 31 month destination. On a decadeft is long mission in space. The Rosetta Mission is the first attempt to orbit and land a probe on a comet. Air asia chief executive is making some big announcements regarding formula one. Be a busy few weeks. He is preparing to announce that air asia has been given the license to run it in india. The first time a Foreign Company has been allowed to run in india. But, it took me seven years. I was blocked by the government. Patience is a virtue. The prize is a big if we get it. The timing. I hope in the next week or so we will hear something. Approval and hope we can keep the airline up by the end of march. Welcome back to countdown. I am mark barton. I am anna edwards. From thepicks newspapers. David tweed joins us. You take away. I have a little stake in this story. When i came to work yesterday on my bicycle, the temperatures dropped to minus two. It was a drive. After i left, berlin was covered with a sprinkling of rain that turned the entire city to an ice skating rink. People come to work after i arrived came with stories about slipping over on the black ice. There isrs at no nothing funnier than pictures of somebody falling over. They sent their photographers out all over berlin to take photographs of people having accidents on their bicycles. You can see quite a series of mishaps. See. Photographs you can falls over here. Tourists. A few problems here. Somebody being helped up after falling over. Quite amusing. When i came to work this of berlinhe heroes who overnight sprinkled the entire place with the grid. I do not think there will be any more photographers going around. It is the subject here. Iti cannot help thinking if will be covered in britain. There will be a contrast between editorials calling for the government to do something about the joyful situation. The editorials calling for people to toughen up and cope with the cold weather. Is that happening in the papers you are talking about . And nothing like that. It is an excuse for the newspaper to go out there and have a good laugh. Of mine is vaguely weather related. Or not related. The survey. Mae, ifinist vanessa you remember her . Sold 10 million albums for the albums. She turned her legs to skiing. She qualified for the winter olympics. She will be skiing for thailand. She skates and skis. Albums and onto another career. She qualified over the weekend for the tight ski team. She has been in training since 2010. Here going with by and videos posted Islamic Extremist Group which is promising to make their presence for those attending the event. The delegation is raising concern about if security can be guaranteed. What is a special speciality . Let me see. Skiing i am not sure. I will see if i can find it. A big match taking place tomorrow. Roger. That is andy murray. Roger federer. That is a bit of a yopre. A lot has happened. Andy murray had a back injury and was out. First bigs tournament. Roger has a new remember him . I saw him play at wimbledon. Pretty cool. Gameis happening to roger is because of him. Of the court. Ack apparently, that has transformed his game. He used a body that more at the beginning. Embody that more at the beginning. That is raised his game. That could make a wimbledon exciting. And do not miss a oneofa kind cover station with a bill gates. He will join in the loop. For a conversation. German Software Maker sap is pushing back targets to stake its claim on the cloud. Well find out why it is betting big with the coceo up next. Welcome back to countdown. I am mark barton. Just had earnings from sap. The Company Pushing back its profit target by two years at the shift toward the cloud. The code chief executive of sap joins us now. Good morning, mr. Mcdermott for joining us today. Thank you for having me. The big news today is the news that you pushed it back to your profitability target by two years to 2017. Why have you chosen to do that . Committed toy being the Cloud Company powered. Our ambition is to run entire businesses in the sap cloud powered by hannah and surf customers as they manage their Capital Needs and procuring. Theoing this, we feel that midterm target is best served going to 2017 because we will invest in market share gains against all competitors in the cloud space. Will the traditional Software Business continue to grow over coming years or will it decline have to be made up by the growth in cloud . No, indeed. The core will still grow. It is that the cloud will grow much faster. One of the things we did today and the midterm target of 2017 is relate out our ambition is to cloud. 5 billion euro company by 2017. If you take the gross rates, that is 41 compounded growth rate. We intend to grow very fast in the cloud and also in the core. As you know, when you move toward a cloud business, you start recognizing some of that revenue and there is a three year cycle to hypergrowth. Bill, how are you going to reject that the goal of 3 billion by 2017 . Analysts were skeptical of you billion byur 2 2015. They said you can make it but you will probably have to make acquisitions. Do you agree with that . When we gavesaid our target is that it would be a combination of organic and potentially some m a. That is fair. We are on our way to our 2 billion target by 2015. It is already 2014 to look at a we updated2017 and the numbers. We will and we have proven that we will it do m a as it makes sense for our customers and move the company forward. That is never been anything we shied a way from. The majority of the revenue and our guidance is in organic basis was up youre not been afraid of sid basis. You are not afraid of spending the money. Could you foresee yourself spending that kind of money again and the next 34 years . Did in 2010 is we are the Market Leader in Business Software and analytics. We saw the move to the cloud and realtime database and that is why the bold invention of hannah is changing the industry. We saw a mobility the being of a ubiquitous platform of the future. We are in all of those businesses and we are leading we are the fastest growing. We do not need to do m a to get in those spaces. We need to continue to innovate in ais and extend our lead. We are in a much different position that we were in 2010. We have four years of double digit growth behind us. We have tremendous momentum. Hannah has become the de facto standard in computing. We are the fastestgrowing Cloud Company and of the world by scale. We have a more users into the cloud that any other business. We are the marketshare leader in mobile. We have a lot of the spaces cornered. It is about accelerating growth. May is a big month for you. Down inceo, he steps his role which means you will be the sole man at the top of sap. How does that change things but mark things, your role, the management of the company . Well, first, i am incredibly happy that my dear friend and colleague jim will be on the Supervisory Board because you cannot hope for a better friend in the board room. That extends our tremendous friendship. In terms of running the company as the sole ceo, in this environment where decision bold andeds to be quick, we really need to simplify our company. Really simplify it so we can execute and even brisk the pace. It is time where the model makes a lot of sense in a Strategic Planning stuff that is why jim and i have come to this term. Jim want to focus on things on a personal level. He and i have done the strategy and executed beautifully all along. The company is on a momentum swing and we are extending the strategy will build together. Changes in no big daytoday operations stopped we are both excited and ready to go. Talked about how excited you are about to the cloud. What is the most exciting things happening within the Global Technology space right now . Idea of Companies Really getting an touch with their consumer whether it it comes to them from the internet, retail outlet, wholesale outlet, or simply doing this is to business transactions. Have toe big data world focus on the consumer. Number onenah as the in memory Computing Platform in the world enables executives to predictiveime analytic decisions and choices to optimize the relationship with our customers and therefore grow their business. ,f all of the things i believe the biggest a game changer in the world is hannah and sap has it. That is why it is growing so thank you. Bill mcdermott. Thank you for joining us. The following is a paid presentation. Focus t25 by beach body. It is about time. It is about time. The number one reason people have for not working out is they dont have time. I have four kids. I work 60 or 70 hours a week. I do not have the time. No time to work out . No problem. Introducing focus t25, the home