It is 7 00 in london this monday morning. We are ready to deliver the stories that would drive your day. She is in zurich with a look at what switzerlands decision means to companies that want to hire. Hollande takes on a u. S. Tech giant. Swiss lawmakers have shocked the european elite by narrowly rivoli voting for immigration curbs. This could have a effect on the countrys key industries. How many showed up to give their support for these new caps on f oreigners . About 3 million total votes of an 8 million population. It passed by 9000 votes. At was 53. 3 . This is the president looking forlorn. Almost seems to be fighting back tears. There is a sense that there protests there is a real 5050 country split. In the cities, this was voted down overwhelmingly. It was supported in the country in the german and italian speaking regions. This will take years to implement. It will take three years to put this into law. That is the challenge for the swiss government. They have to write this in a way that will be acceptable to the european ison. The European Union indicating that it does not want to do a piecemeal negotiation of that 1990 treaty. Changing system with wideranging consequences. Euis an indication that the will need to renegotiate everything in countries like switzerland or even outside the European Union cannot take a a la carte approach to eu treaties. This did not actually set firm limits. It just said that limits needed to be set. What happens next . Where does this story go now . The challenge for the European Union is that whatever negotiations they have with switzerland, will be taken as test cases for other countries that might be having similar referendums. In the united kingdom, there is talk about 2017. Switzerland said no to mass immigration. Bravo. The challenge will be to not set a precedent for other eu countries that could negotiate their own separate treaties and their own special carve outs within the eu. Switzerland is not part of the eu. Because of this treaty, they enjoy many of the benefits. Free movement of the people and free trade. Looking into a possible criminal leak of data that may have affected up to 27,000 clients. A whistleblower walks into the mail and gives them a memory stick with the data of 2000 barclays customers. It has information about their risk information. Really detailed stuff. This whistleblower said that this is just a sample of a total data set that may be as large as 27,000 customers. He was working with a brokerage that used the information to endear their brokers to clients out there and inl them dodgy investments rare earth metals. He had been told to sell for as many as 50 pounds per file. Incomes, savings, mortgages, insurance policies, passport numbers . The idea is that when you make this phone call, you have this data and you can really identify, without letting on that you have the data, the individual you are hitting up for the investment. Not just a data leak, but data used for the various purposes. Possibleinvestigating criminal theft. A Financial Planning unit that is now extinct. It existed until 2008. It is not good. Especially ahead of their annual presentation. Will that be a tough sell tomorrow . The expectation is that bonuses may arise as much as 10 . You have the legacy issues. Nobody is thinking among investors that it is time to pay money. They would argue that they were not getting paid more money because their salaries were reduced. It is going to be a tough sell. That is one of several issues he will have to negotiate. Cash portion of Investment Banker bonuses by 24 year over year. That is part of these good citizen initiatives that jenkins is going to be announcing tomorrow. Reducing Investment Banking by a fifth. That could lead to several thousand jobs getting cut. It is trying to reduce 1. 7 billion pounds per year. You try to take the whole picture and he would like to be going into this annual presentation with a slightly better image. Big music fan. He likes to listen to music before he makes presentations and works through complex issues. Tomorrow, he will face the music. I bet he will be listening to itunes. I wonder what will be on his playlist. Not metallica, the black album. Cranny joins us with more. Significant above and beyond the comments about his personal life which are never far away . They are never far away. This is trying to project mobile statesmanship image. Line in one oft bloombergs stories. No drama obama white house. The official protocol would be out of sync. The official dinner would be out of kilter in terms of who would sit beside two. It is by the rehabilitation of the image of one of the most unpopular sitting president s in french history. Unemployment at a 15year high. Politics,ness, it is and it is talking to big tech. Iran, the is spying ukrainian relationships. Syria is a friend of the u. S. In that regard to syria. We will see if there is any mention of spying. I wonder if he uses his phone while he is there. It is a big g 20 topic. It was the zeitgeist of last year. And a lot were harried into turning a profit here. About20 legacy statement getting together on taxes is something that obama and holl ande will marry their minds on. Not just are they going after facebook or twitter, not since 1996 there has not been a state visit to the white house from the french since 1996 when the president of france went to Silicon Valley and met steve jobs. Coming up, we will have a branding expert here to tell us how carmakers can create a trustworthy image. He will take an indepth look at nissans relaunch of the debts and ran. Time for todays company news. The chinese carmaker said that negotiations to purchase a stake in persia. Deutsche telekom is said to have agreed to pay about 830 Million Euros to take over its check division. This is part of which telecoms stretch to broaden its and eastern europe. Directors are meeting tomorrow to discuss an ipo of the business. Vodafone is one of the few european major cable assets. Liberty global bought virgin media last year. Welcome to countdown. minutes past 7 00. Nissan is bringing back the old with the relaunch of its datsun in india. Is ang us now psychologist. What do you make of the decision to relaunch datsun . Is this a brand that conjures up images for you . Talks it does conjure up images. I remember my dad taking me to school and dropping me off at the bus stop in a datsun. It does have a heritage. Does it have a heritage in india . They are trying to create a completely niche brand. Its going to be going to the emerging middle classes. The first models will be for firsttime buyers and things like that. It is a difficult one. Bigever i think of a automobile brand looking at another automobile brand and being distinctive, i look at mini. Successfule two brands that are being consumed and relaunched. When bmw took over rover, they just wanted it to be a small car. Brandnted to inject some dna into that car. Make it a small sports car . It is now a small sports car. Cars, at with sports the same kind of idea happened with volkswagen. Be the name, the car that you did not want to be in. They projected the paternal family care for this brand and gave it its own identity within itself. How do you distinguish a brand . Nissan is middle income, datsun is low income and infinity is upscale. How would you establish it without diluting the other brands . You have to be very clear to your market what this means to them. You have to be clear in terms of this one. The nissan go, which is the first iteration of the brand, it is the kind of car which is fun, it does exactly what it says on the label. What they have done in the indian market is that they have made a very wide range of accessories so that they can still be your own type of brand. What kind of accessories . You have floppy dice in the mirror. It could have been a neon glo wing logo, which people want. That is to make it personalized. From aportantly, psychological point of view, is to make them want to aspire to go up to the next step to the nissan brand and go up from there. People have to know they are part of the same group. If you want people to go from datsun up to nissan, up to infiniti. Absolutely. That goes back to the bmw and the mini. People knew that it was a mini. It was part of the bmw brand. There has got to be some quality. Something from nissan put into this one. The germans seem to do this ready well. Should they be brought back from the dead . If they are completely dumb a there is no more life left in it. Maybe no. It all depends on how you can get it to be perceived by the market. It is interesting when you look at them. Many industries try to divide up their business. They have the lowend, the middle end, and the upper end. If they have this lowcost offering, it may cannibalize more expensive products. Does that happen in the car industry . I will talk about apple with the 5 s and 5c. Higher brand and a lower one in terms of price points. What happened there was very interesting. You can bring out a lower level model which actually drives the higher level model. People would rather be seen with the higher level model than the lower level model. It worked. It is a really risky venture. The automobile market has been consistently going down a bit. It has been consistent. They have got a challenge. There appears to be an unlisted event taking place at the sochi olympics. This one will not get you a metal. Hotshots is coming next. Richard bransons Virgin Galactic is set to make its Maiden Voyage sometime this year. Those who purchased a 250,000 ticket one may want to get familiar with the feeling of weightlessness. Cory johnson went to try it out. I am cory johnson. This is one of the most enjoyable moments of my life. Way. Just always that a few minutes ago, i looked like this. I am doubting Cape Canaveral on my way to experience zero gravity with a Company Called zero g. I am the wrong person to do a zero g flight. They have partnered up with for passengers to get used to the experience of weightlessness. They will offer up the experience for anybody who will pony up five grand for the experience. The plane flies at 24,000 feet and goes into a series of parabolic arcs. Flies at anll extreme angle. It feels like 1. 8 geez. To34,000 feet, it begins dive at an equally extreme angle for half a minute. In that minute, passengers experience weightless. They do it again and again. There is a reason that this plane is known as the vomit comet. Less than four percent of our participants get sick. It is very rare. I will need some numeric handholding here. This is becoming more of a reality. Companies are talking about their peopleave experience microgravity. That brings us to where we all started. This experience comes at a price. A Virgin Galactic ticket costs 250 grand for six minutes of weightlessness. 5,000 a headging for seven minutes of weightlessness. That is only 11 a second. Weightlessness on the cheap. They have their eye on more than space tourists and seekers, there is big money from nasa. Several companies are looking for contracts for the increasingly outsourced space agency. Races capitalist space on. Nasa is paying the russians about 7 million every time a u. S. Astronaut hitches a ride. A private maker says that they will charge several thousand for orbital flights, but only has room for one passenger at a time. Jeff bezos is still in the testing phase. , before of that working i can figure out, i will be back on the ground. Paying 5,000 might seem like a lot of coin. There is an extra perk. You get to keep the flight suit. There is the twitter pictures i could make you the envy of your friends. Can you put a price on that . Me, one giant for leap for bloomberg television. Talks it is time for hotshots to take a look at some of the most compelling images of the day. Over 100 years ago, captain Robert Falcon died trying to reach the south pole. Now they have completed the same 1800 mile trek to the south pole. Taking 105 days, they each pulled sleds of wearing weighing over 450 pounds or an average of 70 miles per day. Living onto a less taxing winter sport, so cheap. While the olympians compete for gold, others compete for the best selfies. They want to be in front of the giant olympic flame. People have been flocking to pull out their cell phones and put on their best selfie expressions. These are the Bloomberg Top headlines. Some breaking headlines from. Hich, calm Deutsche Telekom the buyout is part of the effort to broaden its reach in eastern europe. Is investigating a possible criminal leak of client information. Mail reported on sunday as many as 27 thousand customer files containing personal and Financial Information were taken. Ms. Eurozone chief the eurozone chief banking regulator is sending out a warning. She told the Financial Times that some banks should be allowed to die. She also signaled that she wants to weaken the link between government and eurozone banks. Lcome back to countdown crossingng earnings the bloomberg terminals. Is it profitable . Has it changed its forecast for the fall . It stuck with the fullyear forecast. It slashed forecasts by 15 of the profit target. They are sticking by them at the moment. We will see ¥10 trillion in terms of full year revenue. Sticking with that growth, we would like to see a net income just shy of four percent. We have been thirdquarter income by a substantial amount. This is 20 billion more than analysts have been expecting. Operating is worse than estimated. You will see some manipulation of the numbers there. Now that has been helping rivals like toyota and honda. Nissan was ahead of the game. They started shifting production abroad, particularly in emerging markets, investing in Company Countries like mexico and brazil. They have not benefited to that extent. They have been hurt by snow in emerging markets. They had big exposure in thailand, indonesia, russia. Ring you back in the 1980s, the datsun. They will be unleashing that in india. A halfess than six and thousand dollars. Sticking with the forecast, it will be a sigh of relief that the chief executive of nissan is shaking up manners matters. The chief operating officer no longer exists. The vice chairman. He has a lower level of lieutenants reporting to him. He said that we are not going to have three regions anymore. We are going to have six. Instead of breaking up big markets like china. Buyese do not want to japanese products because of the ongoing political dispute about the islands. They have remained to the biggest supplier in china to the japanese brands. Operator profit misses. We will dig into how honorable they remain in china. The fed chair janet yellen and the bank of england governor are set to speak. First will deliver hurt testimony as head of the fed. As for more, james ashley joins us now. Thank you very much for coming. We will start with janet yellen. It is a big event this week. Tapering is on Cruise Control is the message coming through from the fed of late hearing late. Is very much those of ben bernankes. I do not expect to see a radical change in direction. When we see changes and other Central Banks, we have seen differences and how the Central Banks have responded. At the moment, i would not expect to see anything too different from yellen this week. We could perhaps see Something Different in terms of how she responds. The big one on wednesday. What is the evolution in your eyes . What you think is going to happen. They will have to do something. The implement rate is at 7. 1 . They are not doing anything right now. Our expectation it will be widely south. Rather than changing the threshold to 6. 5 , this will cover a wider scope of labor market indicators. The downside of that is that it muddies the waters. The upside is that it has a bit more wiggle room. What about saying that we will not raise rates for a year or two . That would be the best option. It almost seems as if the Interest Rate forecast which they would have to subsequently change. There could be a loss of credibility attached. The clearest policy would be to put out a central pack the same way they put out the employment rate. At this point in time, that is too big of a step forward. Isperhaps the other argument that it did serve a purpose. Perhaps the british economy averts from the path which it was going to take. Perhaps they could have kept Interest Rates lower in the market. It was launched in august of last year. Coincidenceculous that the Unemployment Rate has come crashing down. Is it because it was a remarkable success . There is some truth in the idea that it has been beneficial to the economy. Not just in terms of holding down rates, but holding down the volatility of rates. I do not think it has been a useless policy at all. They need to change the format of it. Why are Central Banks so appalling at forecasting . Are they any more appalling than anyone else . They are probably the best of a bad bunch. Viewers, inind our august, they said that unemployment would not hit seven 2016. We are late not talking this month. That is a huge mess. That is attaching policy to the Unemployment Rate. It is the flip side of connectivity. We havent talked about the productivity problem in the u. K. It is by definition puzzled about the unemployment. Why attach policy to this . Lets talk about the eurozone economy. Some of the manufacturing pmi nu mbers without some in the market noticing came out better than expected. Pmis are normally a reliable indicator. What we have seen over the past couple of quarters is that tmi has been less reliable. , initial production will be quite weak. They could be weaker than that. They could lead to potential downside news on gdp later in the week. We have some news on some acronyms. Highest court said that somebody else maybe decision about the ecb bond buying program. It is down to the court of justice. Is it to the ecb to bailout countries in need . I do not think so. You read through the details of it. Know thed not punchline, you would think that the Constitutional Court would come down against it. Up to going to put this the European Court of justice and let them make the ruling. Rather than condemn it, they have put it onto the ecj. They are widely expected to take. N a more favorable we talk about the integration of europe. This is a judicial integration of europe. Thank you very much. , nasa is exploring ways to decrease their stake in loreal. Newsme for todays company. A wider than expected loss and sales have missed estimates. Theyve forecasted the Sales Outlook of 1. 1 billion last year. They hired Robert Downey junior to promote their brand. A fivemonth rally is lifting the investment record. Andrecent bets on twitter an online retailer help boost shares of his publicly traded company. Warren Buffetts Berkshire hathaway shares were about flat. The lego movie took the number once. In america. The movie opened with more than 69 million in box office sales. first numberros. One feature this year. Welcome back. I am mark barton. The startminutes on of todays european equities. I imagine you created a few things out of legos as a child here it i still do. I do not doubt that. I am not going to ask you about your skills and legos. Does he have a young kid . Or does he do it on his own . He just makes things out of legos. What do we have coming up . Futures are actually rising. Last week, we had a difficult start. Today, they are up. The Federal Reserve will delay a third cut of on purchases. On friday ined terms of jobs data. Gained. 33 . Res i do not know if that is good or not. We look at the companies that could be on the move. Vodafone is in focus, nestle is in focus. Year we would see more consolidation. Thefone may be more active. Company has approached a Spanish Company about an acquisition. Deutsche telekom has agreed to zech interest from investors. Worlds Largest Food Company is exploring ways to reduce its 29 stake in loreal. There was a scandal involving a very famous french heiress. It is an interesting story. Lets look at one of todays top stories. Caroline is here. What is nestle up to . Nestle could gain as well. It is all about nestle analyzing how it would reduce its 30 billion stake it has in the cosmetic company loreal. 29 it has in that company. Come april, the restrictions on it selling those stakes will be lifted. Company thatto the owns one third of loreal itself. With the expiring coming to an end in april, this seems to be a speed up in what nestle and loreal is looking at doing. Many investors are hoping that loreal itself would buy back those shares. That would boost your holding. After the market, that 29 would not exist anymore. Each share that you own would become that much more valuable. It is interesting the relationships between nestle, loreal, and a french drugmaker. That loreale holds. Nine percent is held by loreal. It could buy back those shares. It . Omplicated, isnt it essentially wants to get out of cosmetics and focus on nutrition and health. That is the key focus. Why have all this money when itp in loreal could be getting back and investing elsewhere . John is here with some of the top macro themes to watch for the week ahead. We have a lot of Central Banks. Forward guidance is dead. Long live Forward Guidance. Mark talked about this in your previous interview. In august, they were talking about 2016 for when unemployment would hit seven percent. 1. 1 es later, we are just away from it. It is honorable to give investors some certainty as to where rates will go. You run the risk of tying it to an Unemployment Rate that goes faster than you anticipate, thereby undermining Forward Guidance. The second part is credibility. You diminish any attempt to reengage anyone on this whole issue of Forward Guidance because you have been so bad at forecasting it. It will be a big issue this week. How incredible will it be when you have been so wrong, not once, but twice . The fed will talk about Forward Guidance. This started back in march, 29 2009. Then they tied it to a threshold. For the bank of england, this experience is six months old. The debate will be whether we should be doing it at all. It is not just about the next phase of guidance. Later this week. It is a semiannual testimony. You want to get into what she thinks about policy and also an insight into what she is going to do on the other side of the atlantic. This rate has fallen way quicker than anticipated. The inflation is not there. Your next guest is full of that. Deary me. That is below the belt. Thank you very much. That last lansing blow. Little be back with a showdown. And an accommodation on where we are heading in the markets coming up this week. Welcome back carried i am mark barton. Week move ahead to equities markets and investors. Lets talk about results. We talked about some of the Central Banks making the headlines this week. How has this earnings season then . Been . I think the ftse still represents reasonable value against the s p 500. We still have much of our business on an international basis. It does represent some good value. The one webably be are looking to see. Ales appear to have gone extremely well. Thing they need is this account theft story. The report was out last week. The bank of anglo and has told the banks that we do not think you arent spending enough time or money on security and this is a classic example. Of all of the ceos, he has tried harder than anybody to do something about the trust and restoring the it does go to show that the trust element is going to take another thrashing. What is much more important is the fact that barclays cut back on its Investment Banking of perhaps 150 billion pounds. Me, whichif you ask bank i would rather buy that or hs b. Sc. Hsbc, barclays is the one. Cable talking about casino banking, the general banking has been the libel. A brief word on lloyds . It has done very well. The trouble with lloyds is in the share price. I think lloyds is quite a boring business now. The next charge may be you do not do it in little chunks. You just get rid of it. We have 30 billion coming back. While people are in that mood. 10 seconds on manchester united. Talks i am wrecked with embarrassment. I had to sit in between. Thank you very much. Welcome to on the move. I am Francine Lacqua at Bloomberg European headquarters in london. We are Just Moments Away from the start of european trading and our markets team has everything covered. Youre with me now is our European Business correspondent, caroline hyde, ryan chilcote, and our markets editor, manus cranny. Futures pointing to a higher start. It is all about the fed. The day, would they, should they in terms of positioning . The french, Industrial Production misses estimates. Investment into france is the lowest on the global stage. Thing that caught my eye. What are traders doing . They are betting on the bonds. They are betting against volatility in the United States of america. Keep an eye on that. The stoxx 600 offers relative value to the s p 500. Futures are gaining. 3 . We are expecting the market to open any second. You are covering the immigration vote this weekend. More curves. Good morning. 50. 3 of swiss voters approved this referendum that sets limits without saying what the limits are on how many immigrants can come in to switzerland. Now comes the difficult part, negotiations between the eu and switzerland on how to implement this referendum and what it will mean for big business, industry, and the immigrantfounded countries. You so much. In terms of corporate news, barclays is coming out with annual figures yesterday and today. They have the presentation tomorrow. Two stories this weekend that are meaningful. The sunday times reporting that the bank intends to slash up to 1 5 of its Investment Bank. That is an interesting one. The mail on sunday, of course. Leaked the personal data of up to 20,000 clients. We will get the presentation tomorrow. It might actually hijack the presentation. Our clays gaining. 7 . Barclayshing gaining. 7 . I am watching nestle and nissan. The head of nissan and renault not doing as well in terms of the japanese yen weakening. When it was strong, it got out of japan and started producing abroad. Now it is coming back to hit it is to hit it. If you look at profit margin, it is the least profitable of any of the japanese carmakers. Clearly not reaping the rewards as much as rivals. Something that we will keep an eye on. We will have a whole sector on carmakers in asia. This is the stock i am watching, nestle and loreal. We understand that nestle is looking to explore solutions to reduce its 30 billion stake in loreal. Exclusivebloomberg and one that will change the way shareholders see the stock they own. What could happen and what they are hoping will happen is the restriction for when nestle can start selling its stake in loreal and will maybe sell it back to loreal. That means that 30 billion will be marked out of trading. Suddenly, each share is worth a lot more than previously. Theirre hoping stakeholding will become more valuable. Caroline will have much more on this through the program. What else are we watching . These indices are gaining. We have a lot of corporate news. The swiss vote. Waiting for italian production numbers to come out and a triptych of numbers for europe to watch. Yellen gives her half year view on the u. S. Economy later in the week. U. K. Andwill be on the the Inflation Report, which comes out on wednesday. In terms of equity markets, we are opening slightly better this morning. Slight gains across the board. All 18 european markets actually finished the day on a rebound, except for germany. Just under trading 14 times earnings, less than the s p 500. See the coots have a cracking call on emerging markets, which is all of their clients. Lets get into some of the complexions that are going on. The swiss voting to get a little bit tougher in terms of the immigration. Residents are foreign. Chemicals industry higher from overseas. From overseas. Francine, you were talking about a couple of stocks at the start. As those discussions are said to get underway. Downsizing potentially the Investment Bank, getting ready for their numbers. Deutsche telekom going for closure on their deal. They have gone ahead and wrapped that. A little bit of relief across European Equity markets. Back to you. Manus cranny. Joining us now for his investment perspective is the head of Global Client groups at deutsche assets and wealth management. Great to have you on the program. Thanks for coming in, as always. Talk to me about market sentiment. We thought this would be a more sophisticated market. It seems we are still this risk on, risk off, tapering or not, and that is the only thing that markets care about. Thank you for having me back to we were very surprised about the tapering engine tapering in december. We would be more surprised if there would be more surprises on the tapering front for the rest of the year. As a matter of fact, we see the u. S. Economy growing at three point four percent this year and unemployment trending down towards 6. 1 . A lot of the weakness that we have had is mostly attributable to unusually harsh weather. What does it mean in terms of your overall strategy . The emerging markets, something practically no one predicted it. What does it mean for investors . When the sun comes out, i think we will all start feeling better. When it comes to emerging markets, i agree with you. Emerging markets has been a tricky one for many of our clients. To paint therd picture of emerging markets using one color, which today is red. In an equally simplistic manner, most of our clients referred to emerging markets as one. They attribute the weakness mostly to the reduction of stimulus from the Federal Reserve. We see the situation is much more complex. Continuingthat the deterioration of sovereign, Corporate Governance thernments has exceeded emerging markets crisis and the fed removal of stimulus has been the catalyst for muchneeded reforms. Investors have to be much more sophisticated. I will ask you that after a short break. Client grouplobal at deutsche asset and wealth management. Stay with us. This is a look at what else is coming up on on the move. Switzerland voted to tighten immigration. Nestle and the markets take a big hit. And no gravity, no problem. Attractingpany is visitors for life in zero g. Welcome back. I am Francine Lacqua here in london. On is on the move bloomberg television, radio, and streaming on your phone, your tablet, and bloomberg. Com. Are onre two stocks that the move. Gaining some 5. 9 . We are seeing more and more of the telecom story play out. 5. 6 on theuch as back of saying a couple of minutes ago that it has agreed a patent settlement. Loreal gaining some four percent today. , the Worlds Largest food maker, may be looking at ways to divest itself from its 30 billion stake in loreal. On the back of that, the share price is gaining. Tightentizens voted to immigration rules. It was a shock to european elite and local business groups. For more on the weekend vote and its impact on the countrys key industries, lets bring back our international correspondent, hans nichols. Just how many swiss voters showed their support for these new caps on foreigners . It was a very tight vote. Just 19,000 more swiss voters voted for this than against it read if you look at the regional breakdown, it is in the east of the country, the germanspeaking regions, or this had the most support. The cities voted against it. In zurich, there was a small protest outside, people protesting this vote. Now the question is, how do you implement it . Who takes the first step, the eu or the swiss government . The swiss government has indicated they will try to do this quickly. They have three years to try to implement the law. Here is one of the newspapers here. Take a look at it. They have years to actually do is it showsdoes someone cutting off a full appletree. This captures what is happening here in terms of the industry elites. If you look at some of the industries in switzerland, they clearly rely on foreign workers. It is going to come down to how this is unlimited how this is implemented and who goes first, the eu or the swiss. What happens next . This comes into place not for a couple of years, right . So you have three years to make this into law. Somewhere in there, you need a renegotiation of this 1999 treaty, which has removement of peoples. The question for the eu, do they want to have an exception for switzerland . You are seeing other conservative allocations politicians seize on this. Is very aware that whatever stance they take with switzerland will be interpreted why other countries that may or may not be considering similar measures. , hansnk you so much nichols. We are back with the head of Global Client group at deutsche asset and wealth management. What do you make of this story . It a worry for switzerland or the eu . Pen was one of the first ones to speak out, meaning we need to regard shiite to renegotiate the relationship. It is sad. The biggest trading partner with switzerland is the eu. This is turning a Cold Shoulder on the European Union and puts additional pressure on the swiss economy. I am not surprised by the reaction. At the same time, we have three years to see the result. You are not expecting investors to panic today and say, what do i do with what i have in switzerland . Or the conversation will start going and the markets react to hot stuff, right . I do not think we will see a big movement on the swiss franc. Most of our clients start thinking about this on a mediumterm basis. This has more repercussions about other important votes later this year about what does this have to do with the eu and its positioning versus neighboring countries. Bywe started the interview talking about the fed and emerging markets. You want money, forget the bricks. You want to be in the frontier market. It is interesting. We think most of the value is outside of the bricks. Was at a client meeting last week which was very interesting. That, fornting out example, the pacific rim of latin america have the same gdp as brazil but is growing at twice the speed. Subsaharan africa is similar to where india was in 20042005. Gdp per capita is significantly high up your higher. If you look at asia and compare that to china, it is similar to where china was seven or eight years ago. Private consumption is a lot bigger. We have been talking about emerging markets on this show for the last six years. A can never quite followthrough. Does it represent a bigger deal because the bigs are under pressure . Think the msci index is low. That is obviously a trap. They are hard to capture, most of the opportunities are outside of the listed markets. You need a specialist player. Thank you so much. We will talk about financial than some of the earnings next. We are less than 24 hours away from the presentation to investors and that is coming as reports that barclays may continue to cut back on Investment Banking. Ryan chilcote has the story. Barclays will cut 1 5 of its Investment Bank and selloff as much as 150 billion pounds worth thousands ofslash jobs according to a sunday times story that came out yesterday morning. Would Antony Jenkins be doing this . He is under pressure from investors to boost returns. The government has not taken kindly to what they call casino banking in an effort to approve with improve relations regulators in england. And of course, we have the new Capital Requirements that the bank has to comply with. The big issue is operational profit. It was supposed to be good. 7 billion is what barclays is expected to report. If you take a look at net income, the expectation is just a few hundred million. Is because of legacy issues concentrated in the Investment Bank. You can expect Antony Jenkins to spend time talking about how he intends to cut the Investment Bank back when he does his annual presentation tomorrow. Examinings is also theft of data. A whistleblower went to the mail on sunday and effectively said, here is the data of 2000 clients of barclays. With all of their personal information, very specific stuff like their appetite for risk. Brokeragen this at a i was working with. The brokerage used it to sell andstments to these people got it from some third party that got it from the bank. I was told to sell it on for up to 50 pounds or 80 per file. He also said that this is just a sample of as many as one a 7000 files of clients link to barclays. Our quays confirmed that there was information taken from some of their Financial Planning customers dating back to 2008. They say it looks criminal and they are looking at it. Just another example of the kind of news that Antony Jenkins does not want to be entering at his presentation tomorrow. He is trying to show that the bank is getting cleaned up and oversight has improved. This is just a reputational issue that the bank is going to have to explain tomorrow. Thank you so much. Ryan chilcote with the latest on barclays. Dario, we went through the many pitfalls and talked about the frontier markets, the fed. Give me some of the Industry Groups that you like. Financial is one of your top three picks in terms of industries worldwide. I think financials are for positive earnings and upside. That is one of the industries we like. Another one is customer discretionary. We believe in the u. S. Recovery and in general, i think a recovery and send it will filter into positive earnings. You also like technology, which i am surprised about because some Technology Stocks are very frothy. Are you staying away from those or do you like them all . Spendthink that corporate friday will increase for i. T. Will increase, especially around pc sales. When you look at consumer discretionary, is this around the world or do you have a preference for europe because valuations are cheaper . Bullish onbeen more the euro versus the u. S. For quite some time, favoring developed markets over emerging markets and equities over fixedincome. Valuation is definitely more interesting in europe. That has not changed and it will not change for the perceivable future unless we get some kind of strong market reaction. There are two clouds on the horizon. Hopefully those will not paralyze. Talk to me about japan. That is an interesting one. ,rom a consensus perspective most of our clients expected japan to have done very well in 2013. Into 2014,ooking there are a few headwinds and problems. Consumer spending, consumer tax coming into april. It will be hard to replicate. Largely, we agree. Willlieve the msci japan finish around 120 and on the back of the dollaryen, about 110. I was in japan a few weeks ago when there were some negative surprises on the u. S. Economy and the nikkei was down 4 . I was talking to a client and the client said today was a record by volumes in terms of japanese investors. I said, why . Focusing onryone is the external event of money coming into japan. Lets not forget, 15 years of negative inflation has plagued this country. Trillion inut 3 cash that is waiting to be redeployed. We are at the forefront of trying to persuade japanese investors to invest some of their money in japanese equities. Thank you so much for joining us today. Coming up on on the move, president hollande those stateside rally u. S. Tech giants are preparing for the first visit from the french leader in 18 years. French president Francois Hollandes 2day visit to the u. S. Begins today. Manus cranny joins us with the very latest. There is recent personable travails. It is all about tech. Taxation oft is the tech or currying favor with tech. Ite house. Bama wh the officialupset protocol and dinner. This is a man on a mission. The man who is chasing companies for tax. He has an entourage of 70. It is all about business. Spying is on the agenda, syria is on the agenda, iran and ukraine. And taxes was a big issue at g20. He wants to capture that and move forward with obama. He will go to see facebook along with a few of the other tech companies. Google and twitter, beware. We also want to know about the first lady. Maybe that is just me. That was last week read lex still to come, putting a price on olympic gold. We tell you which companies which countries shell out the most to their top athletes for winning. Welcome back. Bloomberg cost European Headquarters in london. Lets see how things are shaping up. This is a picture of the markets and we are seeing equities rebound from 2010. Were seeing a little bit of optimism growing this morning in asia. HadFederal Reserve discouraging data and showed that employers hired fewer workers on friday. Look at currencies, in terms of i want toe seeing focus on the pounddollar. It is flat on a twoday advance versus the dollar. This is before a bank of england update on the Inflation Reports this week. You can see that this is an focused and we will go to china. These are the Bloomberg Top headlines. New immigration curbs in switzerland impose curbs on immigration and about 1 5 of the residence are immigrants. Management says that there will be it a crisis in emerging markets. The company is taking advantage of buying after the selloff. Barclays is investigating a criminal leak of information. They are speaking with regulators and customers. Customers files were taken. Barclays says that the bank is taking all necessary steps to contact clients. Will deliver her first testimony as the fed chief and we will get the bank of england Inflation Report on wednesday. That will take center stage. We are live now. Thank you. Andard guidance is dead longlived Forward Guidance. This is going to give you, me, the businesses, a sense of what the rates will be in the future. You have not seen them hitting the unemployment fresh threshold. 0. 1 from the respective threshold. Has turned out to be nothing but dead wrong. If you say that rates are going to stay lower for longer, this is really not the way to do it. Repeat after me, it is a threshold and not a trigger. Do what you say you are going to do. Uses to assess rate policy. There has been talk about doing this for quite a long time. This raises a credibility question. Is beyond thetion headline numbers. The lack of rising income in the u. K. They could keep it pretty simple. You name a date and you do not see the rate happening by 2016. There are an incredible amount of options that either amount is that either central bank could take on. That either central bank could take on. For theintment process bank of england and the fed as well. Thank you so much. We are following those very closely. Coming up is the picture for nissan. The least profitable carmaker in japan. The details are coming up next. Isyou are in london and this on the move on bloomberg television. Are one some stocks that the move. We have talked about it all day. This is one of the biggest ones we are watching out for. You can see them gaining 4. 5 . Nestle is exploring its 31 stake in loreal. This is the other one we are watching. It is one of the biggest gainers. To ais after they left htc patent settlement. We will have more on those in a couple of minutes. Nissan reported a 57 jump in profits. Forecasts three months ago. They are still behind rivals. With us is the head of valuations and analysis at glass. The problem with nissan is the yen. It was recovering faster than theta or desk until fukushima and natural disasters there. They started to offshore and fortunes have changed. The again is weakening. So much of the production is done outside of japan. 25 is done at home. They are also the least profitable of the big japanese carmakers. They have a data exposure to the emerging market. We know that thailand, indonesia have political unrest. You are not getting some of the bang for your buck. They are investing in mexico and brazil and that may win out longterm. , at and upfront cost. Thatinly, having to admit and slashing forecasts with a massive management overhaul is interesting. The chief executive has taken away the rule of chief operating officer and got himself a new lieutenant so that he can focus on regional expansion in china. Beaconrance, he was the of how you run a car company. His fortunes have turned around. What is he doing to get back on track . They do not have three regents. They have six. Japanese companies have a big problem with china. They have an ongoing dispute over islands and many chinese buyers avoid japanese products. Still, we see the biggest player of the japanese carmakers in china getting more and having a cheaper range. And they brought back are going back into indonesia for six have a car point 5,000. 6,500. Investors say that the changes in management will take time. Stay there. Lets bring into the conversation richard. Great to have you on the program. Nissan is going through a tough time. Some of their bets are not paying off. Merging markets are difficult will they get through this ok . Alternately, yes, you are right and they made significant investments in emerging markets. For is a great launch pad them to get Significant Growth in the future. They are not quite seeing that yet. You are right. The devaluation of the yen is happening. Thing the one thing that you would change right now is . I spent a lot of money strengthening the modelrange lineup. Great andmodel was they did not want to change its too much. The electric vehicle could be ahead of its time and he could be a good one for the future. The industry is looking to see how that performs over the next few years. Remember that this industry has transformed cells from a manufacturer of dull and drab vehicles to what is considered to be one of the most fashionable lineups. How does the United States deal of competition . Cost of theirt a profit margins. People have to have a high incentive to buy. Is it too much . It is an interesting question. Gas. Market guest prices have stabilized. Detroit makers are back in fashion. That could change quickly. Ultimately, they have a good product and it is a case of getting out there. That they are probably having to buy a market share. What happens is that consumers make the switch and do not go back. It may be the same going forward. Electric cars may be ahead of their time. The prius is doing well. An electricnk of car by nissan. I know they are in the game. Why do we not know that. We are talking about it here a letter. What you mentioned are hybrids and they are different. On aelectrics are reliant battery technology. Consumers,s of many that is unproven and the range is not fantastic and need for me around. In the premier round. Are thinking about, am i going to run out on the motorized motorway . May be theectrics future. At the moment, consumers do not entirely understand them and they are wellsuited towards commercials. People are trying them and seeing how they perform for the winter. Again, to have significant advantages in that area. Up. Spent a lot time parked what about the relationship with renault. Renault . Should the very an absolute be anation there absolute combination . You can argue if that has worked or not. If you take the u. K. Market, just as an example, what they try to do is take some of the some of the other models that they have and repackage them as chrysler. Would you have our products that do not match the perception of the brand and they have really struggled. Thank you for joining us today. Caroline hyde. In 60 minutes, the pulse is coming up. Guy, happy monday. Happy monday to you, to. Too. We have a lot to talk about. The french president is an United States. What will you talk to you next its president about . There will be talk of spine and tech companies. We have new things to talk about with trade and transatlantic trade is high on the agenda. We will cover all about. Loreal story. Caroline will be back to talk about that. We have great pieces on entrepreneurs and we will take you through what the entrepreneur should do when faced with the prospect of selling. Chris nicholson will be here to talk about all that. One of the highlights of my day will be new energy. Concerned. Are a new Energy Companies called off that energy. Although our homes lose a lot of and they have a Cool Technology that allows you to capture some of the heat and turn it into electricity. They do it in a clever way and you will have to stay tuned to find out how they do it. Thats im looking forward to it. Front. At the but the cuttingedge of this sort of thing. I look forward to the segment tomorrow. But good. Me too. Guy johnson. Here are some companies on the move. Deutsche telekom to go over their wireless unit from investors. Planuyout as part of the to broaden their reach in eastern europe. Vodafone is said to have approached gain about a first a possible purchase. There will be fewer many major cable providers. Extending the flash sale model. That the bloomberg site is known for discounting goods for a limited length of time online. They plan to attract more customers in europe and the United States. Up next, no gravity and no problem. We will talk about the businesses that are helping space visitors ride in zero g. We will tell you which countries pay the most to their top athletes. That is coming up next. Welcome back. Galacticranson virgin is set to make its Maiden Voyage this year. The zero G Corporation comes in. Cory johnson travel to Cape Canaveral to check it out. He says it is a giant leap for bloomberg television. Im cory johnson. This is one of the enjoyable moments of my life. It was not always this way. A few minutes ago, i looked like this. Im down in Cape Canaveral and on my way to experience zero gravity. Im the wrong person to do this flight. With virginndred up galactic for passengers have already purchased tickets on suborbital flights. Zero g is offering the experience that anyone else will pony up five grand for the privilege. Heres how it works. Feet. Ane climbs to 25,000 it goes through a series of parabolic arcs. It feels like 1. 8 geez and nearly and passengers to the floor. At 38,000 feet, they dive at extreme angles and passengers experience weightlessness. They do it again and again and again. Theres a reason that this thing is known as the vomit plane. Its less than four percent about just get sick. Im going to need numerical handholding. Arehese companies experiencing microgravity. It is a wide open market. That brings us to where we started. I like it. This experience comes at a price. Costsin galactic ticket 250,000 for six seconds. Zero g is charging five grand at head for seven minutes of weightlessness. Zero g has their eye on more than just space tourist and thrillseekers. Several companies are vying for from theve contract increasingly outsourced space agency. The private space maker says that they will only have room for one passenger at a time. Hopes to take three astronauts into the new shepard caps off. The odds of that working . , were i can figure that out are back on the ground. Paying 5,000 may seem like a lot of corn. You get to keep the flight suit and there is a set of pictures that makes you the envy of your friends. Do you want to put a price on that quest to mark one small step for me. One giant leap for bloomberg television. On that . E small step for me. One giant leap for bloomberg television. How much is this worth . Ryan chilcote joins us. Country it will give the bonus to their citizens . Kazakhstan. End a bronze. It is mostly sober and not a lot and it. In it. Er and not a lot akhstan pays kaz well. She needs to switch countries. Switzerland slams the door, a vote in favor of immigration curbs could hurt the economy and relations with the eu. , taking on the tech giants arriving in washington to call for a crackdown on tax avoidance. Exclusive,erg loreal cuts its 32 billion stake. Good morning. Welcome. Youre watching the pulse live from Bloomberg European headquarters in london. Also ng