Hello. Welcome to countdown. I am mark barton. I am anna edwards. 6 00 in london this thursday morning. Bloomberg reporters are standing by around the world ready to deliver stories that will drive your day. We have details of a slide in stock prices. Manus cranny has been digging into bernankes policy decision. And also looking at nintendo in desperate need of a power up. We will look at what the company is doing to boost its profits. Anothernovo with purchase. Hans nichols is in berlin. Big on the super bowl with the new ad campaign. And Caroline Hyde on facebook shares. Lets tell you what is coming up on bloomberg this morning. E have some big interviews we have Andrew Griffin that will join countdown after the earnings break. We will also get results from menezes. s ivan china manufacturing shares david with us from hong kong. Good morning. Good morning. It is a confluence of factors really. Asia welcome to big declines on wall street. It is all of the uncertainty out there. You have a lot of these unexpected moves. You have new zealand that was not expected to move. Of course, it is all against the backdrop of the fed. At this point, we are certainly below the day that says a lot. There is aut lot of risk aversion. A lot of reasons to reduce those decisions. Last 30weaker over the minutes or so. In china, this is basically coming out with some numbers from january. It is confirming what led to the selloff last week. It indicates a contraction. Keep in mind over in china, the last trading day before the long holiday. That is what we have. Back to you. David in hong kong. Federal policymakers have their first 2014 meeting for this week. We will not be stopped. Up thewanted to sum statement, it is that. They talk about a modest reduction to further measured reduction. There is a wonderful line from analyst sa the hurdles, stepping back from the trajectory. Quantitative easing is pretty darn high. When it comes to emerging from the point of view of emerging markets, the fed has said, hasta la vista, baby. It mentioned emerging markets. There at this juncture. Too early to mention emerging markets . A matter ofly been days. I think that is a fair point. In terms of the labor market, it is next. Haserms of growth, it picked up in recent quarters. A moderate pace. For somel be lower time. Lets bring in john. What a day yesterday. We talked about the South African meeting. 58 yesterday. It was unclear whether they would raise rates. They surprised everyone. Not a single economists surveyed from bloomberg starting to be a trend. Yes. Have a percentage half a percentage. A little less than what you got out of turkey with their nine hour rally. Swings in the lira were huge. You saw it come up about 4 against the dollar and then bang, completely reversed the other way. It is absolutely remarkable. It we end up in a position where policymakers are unable we could move into a worried space scaenario. I remember he was talking about the fed to drop dead, emerging markets. What would happen if the fed did not taper yesterday . After they had gone around saying, em, we have a domestic that is one issue of credibility. Two, a could fan the fear a little more for investors. You know you have got to be concerned. That is significant, isnt it . For the First Time Since 2011. Quite dovish recently. Whole taperinghe gross, hasco, bill been in charge. But happen in the turkish lira , he said turkey and south africa flung the currency test. Derisk. Moved to treasuries. Dont wait to see who is next. Once we have gone through this huge risk of what is happening, right now we are in the eye of the storables do we move back to a period where we structurally got problems and who hasnt . That process will come. They said they could not fight the fed. What did he say . Not. Hey did not fire over i remember covering morgan stanley. A ray there saying is time by south africa, it india, in terms of rates. This policy is not working. That is an important point. Look,r when you theyre draining it at 10 . They cannot keep doing that. Investors are looking at that and thinking, how much have you got left . The market is testing them. Thank you. See you later. Spreeovo is on a buying on terms of u. S. Tech units. They bought googles motorola mobility. They will pay nearly 3 billion for the business. It hopes it will help get a foothold in western markets. Hans nichols joins us from berlin. Good morning. Normally when we talk about google, we talk about acquisitions. This morning, it was a story of sales and they are selling their motorola had unit for about 2. 9 billion. Remember 20 months ago, they ended up buying it. They bought it for close to 12 million. A steep decline. Stake will get about 5 and cash deals. Gets is a foothold into the handset market. That is what they get out of this deal. It is clear why theyre doing and less clear why google is doing it. Hasnt exactly been surging under google. The smartphone maker has lost 928 million in 2013. The Net Asset Value look at the overall smartphone market. Apple at 50 . Lg at 5 . Lenovo is down there at 4 . Anything . Gle get you hinted at some of the things. Yeah. One important thing is that they still retain the some 15,000 patents. They were able to protect their android operating system. They bought lenovo in cash. They also sold off one of the motorola box units. This has not been a total financial disaster for google. They have been allowed to play defense and protect their patents. This was always a patent acquisition and less about the hardware. Google is returning to their core strengths, which is selling ads on the hardware that we use. Thank you. That was hans nichols reporting from berlin. Surging after hours. Particularly and mobile. Here with more is Caroline Hyde. There 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 8fold. 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 to. There have been some worrying trends. The strategy lab said look, in 2011, the number of teenagers of 1317 logging onto facebook on a regular basis has drive dro pped by a quarter. , but many sayrn it is an overblown concern. Theyre not theyre logging on to into scram insta gram. Maybe that is why the overall search of facebook is now worth more if you hold onto the aftermarket gains of 12 . That is just short of vietnams entire economy. Not yet. Thank you. Wecoming up on countdown are talking nintendo. You could say you need to power up. You could say that. 93 billion industry. You have got losses on the horizon. We have got the Business Strategy for nintendo. Guess what . They stand defiant. Thank you. Tapering is the talk of the day as the fed reserve talks about the bond buying program. What is the theme . Why one says investors should be concerned. Tempered todays company news. Hans has no steps to step down. At t is still set to be interested in a potential acquisition of vodafone. The news comes after they gave up and auction. At t said it would not consider a bid for vodafone. People familiar with the information said it might have made the announcement to meet strict regulations. And topping estimates. The largest maker of mobile phone chips. Qualcomm customers are helping sales. Welcome back to countdown. I am anna edwards. I am mark barton. 6 18 a. M. In london. Cut bond buying for a second straight week. Will the pullback keep the same pace through 2014 . Inhave a chief economist economics. Possibly the Biggest Surprise that took place was the fact that there was noted dissent for the first time in 2. 5 years. Does this mean that 10 billion is safe and on track . That is right. A clear and communicated path of measured taper. That is a good news. The bad news is that the fed suspiciously did not mention anything about the emerging market turmoil or headlines or the Global Financial conditions. In the perspective, this was a dovish fed, but a hawkish fed in the international dimension. Are they waiting to see whether the term i will have impact on the u. S. Economy . And not until then will they focus on what is going on in the emerging markets . Could we see a slowing down in tapering . Perhaps. I think that is exactly right. The fed has no democratic mandate to subordinate u. S. Ffense did interest clearlys decision is having an impact on this rapid outflow from emerging markets. What happens next when it comes to emerging markets . Central banks have raised Interest Rates for currencies. Talking to india, turkey, south africa here. What next . The symptoms of the tsunami this macro systemic crisis rather than a micro specific crisis. In that respect, emerging markets are living like a huge part of global finance. Too much emphasis on growth what hasd ignoring been happening over five years there is a huge ballot that has been generated. Oo many buyers are you saying that the same will happen this time . There are some similarities in what is happening in financial markets. There was an indiscriminate selloff beyond turkey. It suggest there something more here. As with any macro systemic components didee that, behavioral market impact, there is a policy reaction and the fundamental fascinating conversation. We will continue it. A short break on countdown. Welcome back to countdown. I am mark barton. I am anna edwards. We have our guest with us. You were saying about emerging markets, is a contagion in that is being driven by Growth Opportunities and investors are saying, i do not need to put my money there anymore, i can find Growth Opportunities in the u. S. . That is not such a frightening prospect, is it . To an extent at this point. We are in a very much evolving crisis. What is have any affirmative behavioral market. Too many People Holding emerging market risks and looking for exits with a diminishing window. Yeah. It is like trying to catch a falling knife. Right now, we have the situation of falling emergent records currencies. Means given how indiscriminate and speeded the recent exits have been, there is shadow banking and leverage accounts. At this point, i think turkey is a good example. Not every emerging market out there is turkey. Andproblem over leveraging shadow banking growth, too much reliance on developing markets for the funding gap. Moment happening at the in turkey is we have a situation that is completely unsustainable. 25 of gdp which is over 200 billion. Is not with the sovereign, but the private sector. The Banking System is shrinking. Now to go through the process of the leveraging. There will be a massive crunch down on domestic gdp. Thank you. Stay with us. I am mark barton. These are the Bloomberg Top headlines. China manufacturing contracted. A survey shows the company is cutting jobs at a rate of almost the Ukraine Parliament offering amnesty. The measure was passed after nearly 12 hours of negotiations. And mark carney said the bank of england still wasnt ready to move away from record low Interest Rates. His book on the issue of scottish independence. He said an independent scotland would have to surrender some sovereignty. The existing Banking Union between scotland and the rest of the United Kingdom has proved durable. These arrangements help make sure that scotland can mccain a Banking System. Maintain a Banking System. Hello. Welcome to countdown. I am mark barton. I am anna edwards. For facebook, experimentation is the key to staying relevant. Not to discuss why facebook be a dinosaur anytime soon is our guest. Great to see you on the program. Profiledhis highly winston study of which they said facebook would die out. You think those concerns are overdone . Yeah. They were using search traffic. 52 of its revenues coming from mobile. People dont search using a mobile for facebook. That doesnt happen with the mobile app. It has got 1. 23 alien active users. Billion active users. A. At is december date it is slowing down. Thank you markets like the u. S. And u. K. , theyre trying to edge toward saturation. Half of the internet connected population what about the teenage spectrum . It has been some concern. Facebook has been very reticent. Thirdquarter reports was a slight dip in numbers. They never really quantified what that dip was. The media suggests theres something afoot. For me, the biggest thing is most of the evidence how do you entice new users, particularly teenagers . This is where it was quite interesting. People talked about basically you can the idea that be infected. If all of your friends are infected, it is easy for you to be infected. Some are suggesting if your friends are using instagram isch facebook owns, that fine for facebook. What if they use alternate social media sites . Could it spread . That is a challenge that facebook faces now. Your multiple channels. Importance you have multiple channels. There are multiple purposes. Effort theyt the have been making to manage very carefully the amount of advertising that goes into your news extreme . Some users have expressed concern that maybe there is too much advertising. Facebook should counter that by increasing the quality instead of the and show of the number of the ads. When you look at the numbers, you see a drop of increasing in advertising, but the polity, it is higher. Quality, it is higher. They tread a fine line. That is something they need to maintain going forward. Two years ago, you have seen, especially for my side, streamlining of products. People all gotten used to seeing advertising on facebook. They are used to seeing advertising on facebook. Facebook is Getting Better at that process. A percentage of the ad market, analysts estimate it will be 9 in 2015. Twitter will be 2. 2 . Some say it is a battle between facebook and twitter. It is facebooks battle to lose. Is that correct . I think so. If you look at Something Like twitter, it has users of about 240 million. In the laster, they spoke this is slightly inevitable, i guess. 2014 seems to be shaking up to be the year of the mobile. More advertising comes from mobile than the desktop. Where is the mother of yahoo said 2014 would be the year Marissa Mayer of yahoo said 2014 would be the year. Absolutely. It has been the year of mobile in the Tech Industry for the last four years. It is something we need to see of solid growth yearoveryear. The fact that facebook has had just under one million active one billion active users is a strong indication of that happening. And facebook celebrates 10 years next week. Get your crystal ball out. In 10 years, what will facebook look like . I think people will still talk about teens leaving the service. [laughter] a lot more moms and dads on the service . Youll have full saturation, ubiquity. A standalone app. When you look at the numbers, 1 in 6 of the world population. That is quite a hefty network. Thank you. Great to get here via. Your view. And nintendo announced disappointing result earlier today. It presented its new strategy. Jonathan ferro is here. How is it changing its game plan . Announcedve disappointing Business Strategy. For thatooking nintendo characters to boost products. Theyre also looking for health care entertainment. How this pans out, i do not know quite yet. Do not goore gamers for nintendo anymore. They go to playstation and xbox. The customers have left them in that sense. I can download the game to my smartphone right now. Nintendo analysts refuses to go down that route. And the hardware . The hardware sales are so disappointing. Over 2 million. It doesnt sound too bad. Look at the performance. Sold 3 million units. Xbox sold more. Nintendo is not in the game at all. It wasnt always this way. Annack in the early 80s, with it on the school steps and play her playboy. Multiscreen gamers. Mario and luigi. I got so good. [laughter] it may surprise you with the top three games actually are. It is in some of the big ones we all remember. Check this out of theendos dominance 93 billion Game Industry is over. But it was not always this way. According to independent industry analyst, the top 20 video games ever sold, 18 were released by nintendo. The top three of all time all caps and nintendo name. Carry nintendo name. And number three was mariokart w ii. It helps them and nintendos dominance as the choice for casual gamers. In second, yes, nintendos iconic super mario brothers. Millions of copies since its release in 1985. It was hugely influential in the best selling game of all time for about three decades. 4 cameas until wii along. A came with the wii and help define their success of the original wii console. One le in number one. And i thought it would be super mario. Slightly disappointing. Sayinge of our guest was Companies Like disney n it looks like they might license the characters. They should be pushing. This is what investors want to see happen. The stock was down. Up next, the super bowl is right around the corner. H m is gunning for a touchdown. We show you how i knew David Beckham ad campaign. Sodastreams super bowl scandal. Time for todays company news. Ian w has introduced introducedbmw has limited models. Is one of one model costs 458,000. And starbucks. Promoted in the beginning of february. They will have mobile payments and Company Loyalty programs. An tim cook is spending on more acquisitions. The company said it paid ive hundred 25 million on deals the last quarter. 525 million on deals the last quarter. Welcome back to countdown. I am anna edwards. I am mark barton. 6 45 a. M. H m will report earnings. The results come days before the super bowl kicks off in the u. S. The retailer is hoping to score a touchdown on the big day with the 4 billion marshall starring none other than David Beckham. Hans nichols is in berlin with more on how the campaign should help h m good morning. Good morning. How many points does it take to score a touchdown . Oh, gosh. [laughter] three . Come on extrad then you get the point. As an use this opportunity to give you a tutorial on american football. One of the reasons advertisers like it is because there are so many breakups in the game so you can slide ads in. That is one of the reasons h m has a 4 million ad with David Beckham. They had a big hit in 2012. Their challenge is how to monetize and add even if it goes viral . How do you make them go to the store so they have an opportunity to buy the underwear of David Beckham directly through your samsung tv . It is the start of h m trying to make a push into the u. S. Market. You look at where the stores are and where the revenues are. I believe 4748 . The u. S. , 10 . Here is what were looking for in our things. We have gross margin and raw material costs. And also expansion plans. We will dig into that a little bit. A quick tutorial for you what is one score in football . 1nil. Mark and anna. The one square at is possible say that again . Re. You cannot have a 10 sco only number you cannot get in american football. You flummoxed me on your american football question. How many points do you get when you score a tri in rugby . How many points do you get when you score a tri in rugby . Mynow youre indicting friends who never taught me the rules of rugby. Yes. Two can play this game. Two for aoints and conversion. Hans, thank you. It is super bowl sunday this weekend. That could only mean one thing a controversial sodastream ad. It caused outrage among palestinians. Elliot has more. Sodastream says its ad is being censored. If youre not able to say what you want to say then i suppose you are being censored. I looked at it a few minutes ago. Ad with uncensored scarlett johansson. She has garnered more than 2 million views. Cokeays at the end, sorry, and pepsi. The ceo of sodastream says h is country is being treated unfairly. Can shownd pepsi competitive products. We cant do that. I guess we are small and we dont have the money. Maybe we are too threatening and someone has to watch out for the interests of our competitors. That is a shame. As an american, im upset and is appointed. Sappointed. We will be running this spot in assia russia to make point that what runs in russia does not run in the u. S. Come on, guys. Ask fox to reconsider. Run the ad. The ad will run anyway without the offending line. Last year, the sodastream was also bad because it featured exploding coke and pepsi bottles. Sayhe copywriters meant to less sugar and fewer bottles. [laughter] grammatical inaccuracies will always be picked up by elliott. Scarlett johansson is also a Brand Ambassador for the company. Scarlett johansson has been an ambassador for a public charity. They are dead set against companies that operate in the occupied sodastream has a factory just inside the green line. The ceo says they are doing a good thing. Even though they are building a new factory, they said that they will stay put. We are trading an island of setting an example for coexistence in the middle east. Upon the encouragement of scarlett johansson, i invested president to a come and have not heard back. Im confident when he does, youll embrace this. We are working for peace. Scarlet has stepped down from her role. She has often been subjected of people mocking upper ads. There is a picture of her sitting sodastream and setting to set the bubbles free. She said that she supports what sodastream is doing. They are building a bridge to peace. Thank you. He is that Grammar Police. [laughter] if you make any grammatical error, he will jump on you. He is a pedant. Im proud. I emailed an isreali newspaper. You can send Us Corrections after the show. We look forward to your feedback. [laughter] isthe Grammar Police watching. State tuned. Newspapers are next. Welcome back. I am anna edwards. I am mark barton. For a look at the newspapers. Were running out of time. Lets go to hans in berlin. What germans order in a is 28 pizza. No surprise there. 24 german food down to 1 . Im reverse on that. I always order in a satchel. I would if i could. This is in the guardian. Jazeeraalists from al are being charged by the egyptian prosecutors. They bring accused of fabricating the news. One among them is is an australian that is very well known. There was a wonderful interview with ambassador. Used to work with this australian reporter. Have you ever failed to pay for an item at a selfservice checkout . Yes or no . Be honest. Do. 5 of us most of us blame the technology. The technology did not work so without we would take it. It is costing the instant street 9industry. The machine is easy to fool. They are hard to scan. Countdown continues. Stay with us. Lower, lenovo shares. The Company Plans to buy googles motorola mobility