Transcripts For BLOOMBERG Countdown 20150106

Is the verdict of the child sony chief executive as he speaks out for the first time about the cyber attack prompted by the interview. Welcome to countdown. Lets start with the global selloff that is characterized at the start of the trading year. Asian stocks fell the most in seven weeks aided by the decline of crude and the fragility of the eurozone. In the u. S. , the price of wti crude fell below 50 a barrel for the First Time Since 2009. Energy companies have been the biggest losers in the selloff which is wiped out more than 1 trillion of equity verio value. The head of the election is in three weeks. It is fair today we had an oil induced route yesterday that is spilling over into today. Benchmark u. S. Oil gumbel of 50 a barrel for the First Time Since 2009 and a closed above 50 a barrel but a decline of 5 year to date in this year alone. It fell 46 last year. That is just two days. Already down by that much. After reaching that high last year of 100. It was not confined to the u. S. Oil, brent crude also slumped yesterday. At one point brent crude was down 6. 6 , the biggest drop in four years. It did just close down by 5. 9 to 53. This is a big line, the market faces more problems, surging supplies from countries such as iraq and russia but on top of those countries you have output from fields. We have about half 1 million a day if western sanctions against the country are lifted. We were talking just yesterday about the amount iraq is reporting. Despite the fact that many analysts and commentators saying this is going to be a positive for Global Growth or at least u. S. Growth this is seen as a negative in the short term by equity markets. We had to asian stocks down the most and bhp down by 4. 8 of that is echoing what we saw in london yesterday. Equity markets globally losing in the same two days, 1 trillion worth of their value in a couple days. U. K. Stocks yesterday down the most in three weeks. Oil stocks taking the brunt of those falls, bp and shell down by more than 4 . The telegraph saying they did not think the bp had any appetite for any kind of tie up. Greek equities down by 5. 6 yesterday their lowest point since 2012. The equity market in the negative in the shortterm. The currency markets are a risk off market, look at dollaryen. A cut of 5 in the past 30 trading days, this is the strongest over the past two days by nearly half a percent. The bestperforming currency out of the bloomberg 10 currencies we look at. The question is, did we run too far, too fast in terms of being long on the dollar . There is a story that the pace of dollar buying was overdone. They have raised the price of oil bear selling to asia. A little bit of an interesting nuance. Gold rises for the third day in a row, up nearly 2 as you can see over the position. The highest in euro terms since 2013. Hedge funds have gone bullish and they have doubled their long positions since the midnovember. It comes to again talking about the yen rising and gold rising treasuries 30 year government bonds in the u. S. Are the lowest in years. There is a consensus out there that inflation is not going to be torture in the United States of america and what you have here are all the hallmarks of fear. You have till gross, formerly at pimco saying no hike until late in 2015 if at all. Lets talk about Global Growth, in china 1. 1 trillion spent on infrastructure as it seeks to shore up growth. Bloomberg news from hong kong with more. The keyword we hear might be fast track but we are talking about 300 Infrastructure Projects, 1 trillion in spending. Sources tell us this will be part of a broader venture. It essentially started late last year and will rise through 2016. We do want to mention last year 1. 4 trillion spent on infrastructure in china. The government gave the green light to projects individually and we are seeing a much more targeted response as opposed to 2009 when the government allowed banks to lend out. As the move illustrates, concern among officials that the consumption driven economy china wants to shift to has yet to bring any kind of growth momentum. China hit by this double whammy slowing Property Investments as well as sharp decline in land sales and local government. We are starting to see china find as many ways to stimulate the economy without resorting to fullblown stimulus first. It was adding liquidity we ask how far 1. 1 trillion goes in an economy the size of china but talking about it these are funded by central and local owned governments, which sectors will the money go into . They talked about seven industries specifically, including oil and gas pipelines, clean energy, transportation mining and the National Development and reform. Again, if it is an additional one trillion dollars or a repackaging of existing projects we are not entirely sure yet that experts say this could provide some support to bring growth to china. Thank you very much. Lets cross from china to the u. S. Where economists cap toy 14 as capped 2014 as one of the best. Gmc 23 gain. The question is whether this is down to the price of gas i have been in the states and my brother has a hummer and his wife has one of these easterly suvs beastly suvs. To have a contest . What ive never had a hummer but there is one man who can tell us. Cheap gas means americans want to buy cars and theyre happy to buy large cars and the december Sales Numbers for gm, ford, all carmakers in the United States saw an increase in sales last month. Best year since 2006 and if you look at all 2014 a stellar year and a stellar month for gm and fiat. Playing to their strengths, they like to make trucks and 1. 5 million cars sold in the United States. Gm saw a 19 sales increase year on year. The yukon, up by 38 . That was as the oil price is falling. Still living better than december was november and thats when we started to see the price of oil fall and people say prices are coming down. It is not just that, it is low Interest Rates Employment Confidence in the economy come a all of that coming together economy, all of that coming together. Chrysler sergio, a very happy man, up 50 . Rollsroyce, the car which i remember you drove almost a year ago to the day, had another record year. Its best in 111 years the you could say the same for 2013 2012 2011 all record years. Sales up 12 . We dont all own rollsroyce is like you mark. Thanks to the hoop that i was driving up 60 since 2009. Not just the sales of the cars that are up but personalized expressions of bling. People want more and more customize cars. A mountain of bling. This is the barometer not of the lower income bracket, the super wealthy. These people sell more cars than anybody for 200,000 euros. If you look at a car like the rollsroyce, you drive down the street and everybody sees you that is the whole point. You drive it yourself or does your driver or butler . The point is you want to be seen and it and you. Want to feel comfortable. That is something people were not in 2007 but that confidence to roll with bling is back. The United States, a huge market last year. Will the uae be such a great market for rollsroyce next year . What about russia . We are watching russia what happens to that market is important for us. Early days and maybe too early to make the forecast. On the other side is very hard for the market to forecast in russia this year. It is not just geographic spots that could challenge rollsroyce in the next year, you have to look at the other carmakers. Everybody sees the high income bracket is the bracket to target. Bradley coming out with the most expensive suv ever. They got rid of my voc as a brand maibach as a brand but they are gunning for some of that fund that rollsroyce has been enjoying. We will be speaking to the man himself, the chief executive officer of rollsroyce a little bit later. Time in london 6 13. What a start, the selloff continues and we will take a look at the things driving the market. Welcome back to countdown. Near the number of 1 trillion in a couple trading days i talked to you about yen rising and gold. There is a man to put it all in perspective, the city Financial Investment director. The world is weary of oil and is buying gold and yen. To put it in context you can probably realistically why in this hit but there is nowhere else to go and that has been the same for four years, it hasnt changed and there is more stimulus coming, a lot of this has been priced into china but throwing fuel on the fire, it is not good fundamentally. It has been that for a while like roadrunner you will run off a cliff eventually and you keep buying in the dips. I hate to be depressing for that theres. Bears. What are the fundamentals for equities . It seems like they are spooked by now. You have to look at it the ever way, it is not everything being toasted, it was Energy Companies taking the bulk of the pain and dragging things down. I would not want to be in the high yield sector, it is highly stimulative. It will stimulate and it will be highly stimulative over the next 12 months and eventually, does it reflect terrible fundamentals . No it reflects huge oversupply. The u. S. Are trying their best not to do this but old demand has been falling consistently it is actually falling. Why another 5 fall yesterday . What happened to precipitate a fall below 50 we seem to break these new psychological lows everyday. The opec producing companies have a huge message, to put the fracking out of business and that is the driving force. It will shut down very quickly because it can. It comes up in a week and can go shut in a week. It does not take months, it will be killed quickly. If that supply gets knocked out i think it will go 50 to 60 that will be the benchmark. Thats not good for russia and not good for highcost producers or fracking. If youre a lowcost producer you drive down the costs of the hidden agenda is that. No question. Saudi is in a game of chicken is the last month wasnt as big as the prior month it decided 50 or 60 will still kill the fracking. It is quite clearly a supply issue they will try to make it more constrained and they are playing along game as they can afford to. I wouldnt read the oil price as a cut to the economy, no one is protecting that, you have some skepticism and you are getting the bears out of the way. You will get slightly lush bullish. Im suggesting you have to play you have to play with the liquidity and that is how it is. What kind of negative fallout can we expect from the fall in oil prices . Yesterday you said there might be emergingmarket Oil Companies that will struggle a little bit is that the kind of place to look . Not russia and not brazil that is not oil but it is still very prochina and proindia and the obvious candidates. The beneficiaries in the asia pacific region, vast parts of the emergingmarket you dont want to be last. I know russia will get cheaper. Bill gross said youre not likely to see a rate hike until late 2015 if at all. Would you agree or disagree . The problem they have is the dollar rally, it continues to rise. It is very crowded but the euro is about to have some more printing going on and so is the yen. I will take an oldfashioned view that there will be less dollars and more yen. [laughter] why not make it simple back in a second, with the citi Financial Investment director. Peter is hair, the city Financial Investment director. Ive forgotten it, the possibility of a greek exit less than 25 , is that about right . It is to keep dangerous. Too dangerous. Im not merkel doesnt want to either. Theyve increased it is a stupid idea, it made debt will from 135 , it is a daft idea. Mr. Draghi gets a little pot of money to buy greek bonds. He has already alluded to the fact that greek could be included in that. At the end of the day he has all he needed, he has deflation coming. Does he lift qe in january . Im not sure, i hope he does but he might not be brave enough and he has the court ruling so we have to wait and see. Great to see you back, the investment director at citi financial. Could robots becoming to a bar near you . They werent around in my day but they do you are watching countdown. The yen market behaves and this is where you are seeing it gaining in strength and the dollar losing a little bit of momentum. It has rallied nearly 5 in the past month. It is the best performing currency out of a basket of 10 that we measure here in bloomberg. Euro at an eight week high. You are seeing big moves and it will continue with speculation about what the fed does. Flip a coin and have a look at the biggest oneday gain since november 11. As we said in our headlines china approves 300 Infrastructure Projects at 1 trillion. Nevertheless, ozzy dollardollar rising slightly. That is your moves. These are the Bloomberg Top headlines. Asian stocks fell the most in seven weeks. That extends a global selloff on the decline in the price of crude oil. The lowest level since 2009. Rollsroyce reporting record sales delivering more cars in 2014 than any year in history. The global sales had more than quadrupled since 2009. The u. S. Is rollsroyce biggest market but the chief executive remains cautious about prospects in russia. We are watching russia carefully, early days and too early to make a forecast for what happens in this market. The russian Opposition Leader has taken to twitter to declare an end to his 10 months of house arrest. He tweeted he has removed the electronic bracelet but says he has no plans to travel except for going to work. He violated the terms of his house arrest last week to defend attend an antikremlin protest. You remember we were speaking on Christmas Eve and we said one date to Pay Attention to was january 15 which is when we were expecting the verdict and sentencing of alexi. Actually, the russians moved the sentencing and verdict up from january 15th to december 30 and kremlin critics says that is because he did not want people to Pay Attention. They convicted him of money laundering, and that is going. And his brother. Both of them say those were politically motivated charges and they both the neither guilt. The unexpected twist in the story was that it was Alexi Navalny who was put in jail for three years and his brother got a suspended sentence, and went home under house arrest. You just said yesterday that the electronic tag he has been wearing he cut it off. Which is a symbolic move and a move that means that at least electronically, im sure there are watching him otherwise, they cannot follow mr. Navalny. One of the things to watch in two dozen 15, is this currency crisis . Is it a financial crisis and about to turn into a political crisis . Navalny is one guy to watch who is in a dance with the kremlin and how the kremlin response with this act of defiance yesterdays weather they round him up and throw him in jail for violating terms of his parole they could do that, there is room for that. He led demonstrations of more than 100,000 people two years ago a big concern for the kremlin and fastforward, the annexation of crimea and the russian president very popular with marginal support for navalny but a lot can change. The russian president is popular but why are people talking about the resignation of Vladimir Putin . It is a very trendy thing to talk about and the most recent person to weigh in is an 81 euro x strategist who made his 81yearold xstrata just exstrategist who said, this may be the year the russian president resigns because things will get so nasty with the collapse of the oil price. Made me think of one of Vladimir Putins favorite expressions which effectively is translated directly into english i will still be catching colds at your funerals. [laughter] prematurely forecast the demise of the russian president. [speaking russian] is the russian expression. As much as people in the west like to speculate, Vladimir Putin has been in power for 15 years. Everybody could sustain Lower Oil Prices for a year, it is what happens if we see more of that. I thought it was an interesting forecast. A little bit of media attention. It wont help you with a new years hangover but a group of entrepreneurs have created a robotic bartending system to allow you to create personalized recipes. Maker shaker is it robotic bartender composed of two arms that allows you to perform an infinite number of cocktails. You can literally create your own recipe and the actions the robots perform make your own cocktails and then share with your friends and then people are able to reorder your drink. It was an installation for the google i o installation and after the installation, it was so popular we decided to start a product out of it. We could have the first and only robotic bartender ready to be sold. We can we have our first order and it is not about replacing bartenders, it is about an interaction with people. I fancy one of those for christmas, 900,000. Not cheap. Do join us and follow us and let us know what you think. Your favorite recipes, russia is trending as is london. This is the three of us. Coming up micmac coming up after the break our next guest tells us why she thinks technology will be bigger than ever. Verizon has approached aol about a joint venture. That is according to people with knowledge of the matter. The u. S. Wireless provider primarily interested in the a a well Programmatic Advertising in the aol Programmatic Advertising technology. Sonys chief executive describe the recent Cyber Attacks against the company. He described the hackers as criminals. They were unfortunately the victims of one of the most vicious and malicious Cyber Attacks we have known in recent history, but i have to say that i am very proud of all of the employees and certainly the partners we worked with as well who stood up against the extortionists experts of the criminals. Samsungs shares in the electronic giant fell 4 . All of its products will be connected in five years. As the Consumer Electronics show hits las vegas, Wearables Take Center Stage why she thinks 2015 will be the year of wearables. Thank you for coming in. Do you think in the world of wearables, will it be i wear that is the dominant eyewear that is the dominant feature . Really looking for to the wearables and internet of things any device that will connect to the internet will work with cents. Whether wearables on your face or your wrist they can be connected to devices in your home, your fridge or your car or washing machine, it does not matter. One of the things you say is that wearable tech will be 10 times the number sold in 2015. If i am an eye surgeon practical application, where will the explosion be . If there is a building you want to recognize you can just look at it and find the history of it. Say youre looking at a billboard in the street dewpoint your device and it or by looking through google last . Exactly. Say you are in your house you have to look at and if youre device is running sense, you can overlay the router and overlay where you should plug each wire. It doesnt have to be wearables, just trying to find out where wearables gets such a boost. If you had to keep pulling a phone out of your pocket it is so much easier to just look at something and instead of pulling a pharrell, opening an app and typing in the text, you can just see it and instantly have an ambient stream of information and receive more. When it comes to content right now, would you say that wearables is simply a cut down version of what is available on smartphone technology, isnt that a criticism of that wearable ecosystem . At the current state we are not seeing technology specifically designed for the wearable technology, someone like apple entering the space will be a catalyst for change because they are so good at Getting Software developers to design apps. From the very wearables a to z, what letter are we at . At the moment we are at the beginning of the journey, we are seeing the first iterations of wearable devices but we will soon see how companies are approaching the wearable challenge. We will see the first steps into the challenges companies are facing. And it will turn to how is the Software Going to support the hardware evolutions. Who are the most innovative relationships you have . If apple brings it to our consciousness and that is what apple and google do, they will teach us and tell us what we want, who is the most Innovative Group you worked with . From the Software Side the Innovative Groups have been galleries, they want to educate people that go to their museums and art collections about things they are seeing and with wearables this becomes a possibility. Just by looking at a painting you can find out more about it and this can be unique to every person who goes into that museum. I can see how that wont feel so strange but i read the review in the guardian and there was a review of google glass as a Christmas Gift citing all the advantages and the downside that you still have to rely on other technologies that the biggest thing is overcoming the social stigma, the way other people look at you when you are immersed in what looks like wacky technology. It was like that with the mobile phone. Consumers the to catch up. The hardware needs to be more userfriendly, what we see with google glass is the first iteration and just like you say with mobile phones, there were these doubts around mobile phones. You needed a battery i had one and i enjoyed it but then you look at what they will do with lens Like Technology in your eye. Fascinating to go from google glass to a contact lens. In a few more years there will be more innovation in the hardware space and i think this first version of google glass will be unrecognizable. And where does it come in terms of leading innovation, are we at the forefront in britain we are trying to be. In britain we are in a unique position, we are at a nexus between this amazing Technical Expertise and on the other this wonderful creativity. We had someone like ada lovelace , a pioneer of Computer Programming and meeting on the other hand, london as a fashion destination and media hub and this wonderful cultural heritage. If we can combine these two things we will be in an amazing position to exploit wearables. Thank you for joining us. Coming up why liverpool football is looking for a 16 hike. Even though it loses its star players. Coming up next. Time to look at our top picks of bloomberg news. Leading with the story being written by our colleagues Jonathan Browning and terry. They were the first to report the football related story. How much to have your name emblazoned across the journey of a Football Club . They are demanding as much as 30 Million Pounds annually from its main shirt sponsor for the 2016 season. Lets put that in perspective, Standard Chartered pays 20 Million Pounds per year for the privilege. It probably will want to remain on the jerseys but liverpool is putting it out there, there will be a bidding process. If it is just one you will pay for that rutledge privilege. What is interesting is Stephen Gerard the most famous liverpool player is leaving at the end of the system so you lose your most marketable asset and if you include luis suarez the same for his biting, he left liverpool in the summer for barcelona and livers pull their two most marketable assets. When you are touting the opportunity to put your name across a shirt, maybe it is not valued as much. Liverpool once to catch up with Manchester United who set a record sponsorship deal with chevrolet 70 million per year. That contract is worth 559 million through 2021. Liverpool has quite a long way to catch up. 30 million ear, anna edwards. I will start saving now. Im going to take you to the book club, facebook book club. Mark zuckerberg made a new year pass resolution to read a book every two weeks and he started a facebook club. This is the one as number one. Moises wrote a book called the end of power. Ironically, this gentleman said could you have a we work with mark and see if you can stick me on the Book Club List and said i dont have the power to do that but there it was and his book sold out. He wrote the book two years ago and it is all about the concept of the end of power and the state and church being the arbiter of how we live our lives and how that is changing. That is something that zuckerberg said he really wants. We spoke to people in the book industry about the power of these endorsements and their is what you can do, 150,000 people who liked it on the page and got updates and it sold out immediately. Whenever they held up their book of the week it sold like hotcakes. I have picked out some photographs from Bloomberg Photo service and they show the stricken cargo ship operated by the norwegian business and it has been grounded on the bank. That is between southhampton and the isle of wight. It has been there since saturday night and all of the crew were rescued. It was built in 2000 and registered in singapore and deliver the grounded by the pilot and the crew after a developed a dangerous list. These photos bring to life the incongruence he of a ship which is leaning at an odd angle and you wonder how it can stay there, they have been trying to write it and you get a sense of scale from these photos about how it is becoming a tourist attraction. A valuable cargo of cars are on board. Something we will take up with the boss of rollsroyce of little bit later. Countdown begins in the next hour. Global selloff of asian stocks and fall the most in seven weeks. Over to the eurozone and it takes its toll. Accelerating development of big projects valued at more than 1 trillion. A record year for rollsroyce , it sells more vehicles than at any time in its history. We will talk about the year ahead. Quietly confident, the take for 2015. A good year for rollsroyce. Vicious and militias, the verdict of sony chief executive as he speaks out for the first time about the cyber attack prompted by the film the interview. Welcome to countdown. I am mark barton. I am anna edwards. And i am many cranes. Many friends. Far asian stocks. They have failed the most in seven weeks. The decline in crude oil and the fragility of the eurozone and the list goes on. And the u. S. , crude fell be low 50. It wipes out one trillion dollars of equity value in the first few days of 2015. The possibility of grease leaking the eurozone is weighing on investors minds. What a day. Oil breaks new ground. As in new lows. 50 a barrel and the u. S. Closing at 50. 04, the lowest since april 2008. At one point, it was down by 6. 6 percent, the biggest drop in 4 years. But still that was a low since may 2009. It is all about output. Continuing the evidence of output will increase more than reports, the oil market faces more problems this year with searching supplies from countries like iraq and russia. And estimated to be two alien barrels a day. Output can increase from fields in west africa and iran could increase overseas shipments of by half a Million Barrels a day if sanctions are lifted. More supply means oil could continue to head lower. How does it affect equity markets . It is interesting. Well see the big moves particular in the oil related industries, Oil Companies. What does it mean in the more mediumterm . Another voice telling us it is a positive for Global Growth in the u. S. And other countries that are buying oil right now. The equity markets reacting in a negative fashion. Asians stocks down the most in seven weeks. We are only day two, day three. No surprise, the oil stocks are feeling the brunt of things, bp and shell down by more than 4 . And other stories guiding the market lower, greek equities down by five point 6 , the lowest since 2012. A couple of other markets we look at at risk aversion. Equity, equity markets in the Commodity Markets and money going to the yen. The yen is making new highs. It is rising. Five since the past few days. Five cents the past few days. Gold is rising for a 30 day. In euro terms, a real spike in the price of gold which start at it the end of november. Hedge funds are bullish for the first time in three days. They have doubled their positions since november. The number people betting against gold for a 30 day in a row. Maybe i am stretching or pushing the envelope, we like to do that. If you believe there is a continuation of no lack of inflation in the United States aqua america, money is going to the 30 year bonds, the lowest in two years. Deutsche bank saying this is going to be key issues they keep on the yields low and will continue in 2015. But another person says he would be surprised if of a rate hike at all this year. It looks like perhaps in china, accelerating at 1. 1 trillion in infrastructure to shore up growth that followed below the 7 mark. The details. Good morning, anna. We are not sure of the additional 1 trillion in funding or a repackaging of existing projects of but either way, economists say it could add a boost to chinas economy there. 300 Infrastructure Projects were talking about versus may be of a broader 400 venture sexually and dollar plan that essentially is 6 trillion plan to started last year. This move contracts to things in the past where the government used to greenlight projects individually and concern this domestic consumption driven economy not quite creating the growth momentum they were hoping for. In that, analysts cutting projections for this quarter to 6. 8 , reinforcing a cost that the central bank needs to step up on stimulus. Which are going to see this project the money then . Where is it going to be . We are talking about seven industries being mentioned including oil and gas clean injury, Health Transportation mining. The commission which oversees say that will be looking at other projects as well in other industries to see if they can provide more growth to the economy. Ivanovic, thank you very much , joining us with the latest on chinese to greece and the snap elections which could determine the countrys future. With less than three weeks to run of the vote and antiausterity party, reports from germany suggest that economy may be more flexible to the possibility of a split between greece and the currency bloc. Can europe afford to let grizzlies . Lets ask wolfgang. Great to have you with us. Can europe afford to let greece go . Trying to instill fear and the greeks by they tolerate aggressive exit from the eurozone . Let me preface this by saying i believe that all of this noise about exit is nonsense. It was nonsense and 20 left, 2012 and still nonsense. Are the germans sending a message . Absolutely. They did it in 2012. They send a message to the mps before the election. They are opposing themselves as a bit of posturing. The greek party, samaras is posturing. They were saying greece would leave. Posturing and maneuvering but the reality is that it is still does not make sense in my view to talk about greek departure from the eurozone. Amongst the posturing, what do we know about samaras planet plan how far from austerity will they really go . They do not have a plan essentially. It is a very party where the leader is questionable. It was fairly easy for them to keep control and the moment they go into assuming theyve managed to do that but cousin there is a question mark of their. Because there is a question mark there. That isnt in the plan. What in heaven saying for the past couple of years, they are ruling out unilateral moves. Theres plenty on the other side in terms of policy ideas and very difficult to sell to brussels. In my view, a series of poses, not so much the plan of putting it together but the fact that do not have any in running any sort of government, local, regional and certainly not the national level. This lack of experience will be the biggest problem for samaras assuming. How will it play out when it comes to the victorious in the election . When it comes to negotiating with the likes of Angela Merkel . What is the Common Ground . Where do they meet . First of all, they will need to create a coalition. Need to find a suitable partner which means they do so, they wouldve softened their line. And a bit of posturing between and the new government because again, time for both sides to get to know each other and get up to speed. And the middle ground is the fact that none of the two sides want to contemplate the worstcase scenario, a eurozone exit. Again, assuming they can put one together. It is a big if at this point. Will it last . It will not last. Six months, maybe. Maybe waiting wait and see how long this can last and the interval, you do not take any significant decisions. Wolfgang, put in context of what might happen and need to understand the risk. That risk is it is a country where the debt of gdp of 175 and you cannot live your life at that percent, somebody is going to have two data series. Will it be the taxpayers that take another look through . No. Is there a possibility . Absolutely. If you do about will the germans give up their 70 billion exposure . No, they will not. If they did, it would be a discount on the margin for pledges, commitment to keep doing what theyre supposed to do in greece, reform. It is all part of a big bargain, factors, the ecb, the commission, germans. It will be a fairly complex again which i do not inc. The party is wellequipped. Will have to draw a line and it will be back. Wolfgang piccoli. Coming up, a banner year or the old standard of cars rollsroyce. After the break, breaking every cell record in its 111 year old history. The chief executive will join us after the break. Time for company news. Verizon approach aol about a possible acquisition or joint venture. According to people, the u. S. Company is interested in aol Advertising Technology but it has not made a formal proposal. Vicious and malicious is how sonys chief executive describes the recent cyber attack against the company and broke his silence while speaking at the Consumer Electronics show where he described the hackers as criminal. They were unfortunately the victims of one of the most vicious and malicious Cyber Attacks we have known certainly in recent history. I have to say, i am very proud of all of the employees and certainly the partners we work with as well. Against some of the extortionist efforts of the criminals that actually attacked Sony Pictures and its employees. Rollsroyce motor cars said it sold more vehicles than at any point in its own 111 year history. The fifth consecutive record for the luxury brand were deliveries have more than quadrupled since 2000 nine. Also spending more on each individual purchase with a Record Number of exclusive personalized features. Joining us now is the rollsroyce ceo torsten muelleroetvoes. Great to see you. The spirit is alive and well at rollsroyce this morning with Record Numbers. A definitely, we had a great year. We broke through threshold for the first time great news for us. Really good. You said you are the worlds leading luxury goods brand. We are. How and how to stay at in that lofty level . We are clearly leading by far. That is number one and number two is rollsroyce is known for luxury. The best. It is even used as a synonym of the rollsroyce of or Something Like that. You do not need to explain to anybody what rose was is about. Rosaries of breakfast, television [laughter] tell me this i was thinking about this interview and i happened to bill your website. I noticed you are on twitter and linkedin and facebook and i was thinking, why . Why with the lofty luxury brand needed to gain itself with social media . Who are you talking to . It is extremely important for many reasons. We are talking to very young buyers not only in asia but the United States. All of these people are used to using these tools. We also need to mature the brand is visible for all other people worldwide and we are also in social media. You are dominating 200 thousand dollar market. There is competition it is getting tougher. Theyll may that, the is him a box, the Bentley Maybach the bentley. We are far beyond the just mentioned socalled competitors. And also not really competition between car brent in the way of the settlement because our custom car brent car brands car brands in the segment. [indiscernible] something where you really buy something where you want to enjoy something. What would a rollsroyce suv look like . Bentley is planning to roll out the worlds priciest suv around 180,000. A rollsroyce suv, how soon before we can get our hands on one . Wouldve not made a final decision yet. I think we will come close this year. This year, you will get the final answer if we are or are not doing that. Rollsroyce does not compromise and we look carefully and carefully into the segment and our customers, what is their expectation levels what is needed to be rollsroyce and the settlement . The approach and the final decision this year. Are you approaching with we have made Good Progress over the past couple of months. This man is very good. [laughter] let ryan drive you around. America, its unique market and awful dobby. One thing and i will dobby. And america is seen as the new segment of luxury. It would be a prime market for a beautiful new rose was suv. It is back on track and Consumer Sentiment is excellent in u. S. 30 even more than last year. We have introduced a car that is spot on for the market. [indiscernible] and also been mentioned in the middle eastern market. Talking about something, a cargo vessel off of the u. K. Right now. I understand there is one rollsroyce onboard, is that right . That is right. Who has the risk in the situation . Any company that has cars is insured . They are insured. And the deductible will take of the customer who lost the car and we will be in contact shortly with the customer and make sure he is a happy man or happy woman. That is a practice in luxury world that cargo has to be replaced at the expense of the karmiel factual . That is something to clarify later. I am more interested in helping the customer loss of the car. We cannot go into it deeply. And we have looked at all possibilities to quickly rebuild the car. How do customers pay for that car . Is it in cash, a check . How do they pay generally . All sorts of different payments are possible. Very much a bank pay with your Platinum Credit card. Also, leasing. The leasing business is important worldwide. It is getting more important. Talking to 80 of our customers who are entrepreneurs, people who lease their assets. Torsten muelleroetvoes as ceo of the rollsroyce motor company. Hack sony speaks about the hack attack. We will bring you that and much more from the techs biggest event, ces in las vegas. 1 trillion has been wiped off of Global Equities since the beginning of the year. Last year, it never fell for 4 consecutive days. Running on five. The greek exit possibility, commerzbank and barton on the discovery there. A 25 possibility. Wolfgang piccoli said it is nonsense. We will take a small break. We will get to the outlook for 2015 for emerging markets. That is coming up after the very short break. You are watching countdown. That yannick is rising. Is the the yen is rising for the second day against the dollar. They yen has rallied nearly 5 in the past 30 days. One of the strongest currencies in the basket of currencies we monitor. The dollar yen has the possibility to make its way to 117 and the next two weeks. A stronger dollar yen. The index up. The euro dollar, not even though your screen. How much i have for a tuesday morning. The aussie dollar is up. There is your dollar yen at the bottom of your screen. Trade deficit has narrowed to step basically, equity markets take less risk. If the yen is rising against the dollar. The Bloomberg Top headlines. Declines on all of the major benchmark indices. Global selloff. The drop in the price of crude oil in the u. S. Crude fell below 50 a barrel the lowest since 2009. Rollsroyce has reported record sales delivering more cars and last year than any year in its history. The companys global selloff has nearly core drupal since 2009. That quadrupled since 2009 and the u. S. Is the biggest market. The ceo is remaining cautious on prospects in russia. We are watching russia carefully, of course. But early days in very early too early may be to make a forecast for what happens in this market. On the other side [indiscernible] germanys Angela Merkel is asking her countrymen not to attend antiislamic protest and she was the five when 18,000 demonstrators she was defied when 18,000 demonstrators arrived. Your paid europeans august as long as eight and islamization. What is the concern about the movement . The number is self and it keeps growing reaching 18,000. Anna, the discontent that some of the demonstrators may represent. It has been a city with relatively few immigrants when compared to the rest of germany. We are talking about a Group Gathering and chanting we are the people. They are talking about germanys over lax immigration policies and what they say is wrong islamic is the grommet is the growing islamicfication of germany. Angela merkel used her speech to warn the germans not to attend these rallies. Just yesterday speaking she spoke out against racism and antisemitism could find no place in our society. When you take a look at how the numbers are wrong with 18,000 last night and started in october with a couple of hundred and 10000 and 15000 and 17,000. Is there hurting counterdemonstrations. In berlin, 500 counter. And there have been counterdemonstrations. In cologne, they turned off the lights and did the same and volkswagen, they turned off the lights on their flashy, new shiny factory down there as a symbol to let people know they do not want to bring attention to this group. What does the group actually want . What are they calling for . 819 point sort of call to arms on their Facebook Page and they wanted immigration policy similar to australias and canadas and bring attention to the number of refugees that germany is accepting and can germany absorb it . Germany will accept likely that the most refugees are around 200,000, asylumseekers seeking asylum in germany. Thank you. Hans nichols. Lets talk our attention now to the new year. Our next guest expects Global Emerging Markets and the second half of this year. Joining us now is the head of emerging markets. Great to have you with us this morning. You say, i love, do not panic yet in emerging markets. If you said this time last year you would be 6 worse off. This is not 2013. The fed is going to be matter but admittedly you have to be cautious and the first part of the year. The call i am making is when the fed finally provide an opportunity for the market. What the setdo will be worse than the reality . Yes and you talk about the expectations, once we are past the hike is a bit like going to the dentist. You come out of your oneness saying, it was not that bad after all. Sometimes, it is not true. It comes down to how they telegraph the pace how the president said as much yesterday. The pace, the timing. Isnt that the key . Exactly. Timing wise, like to get rid of the uncertainty of the fed, it is not possible. I do not mind, exactly as you said, basically to be gradual and when we learn that and get this confirmed. It is going to be good for the assets. Make a point you will not get a high cant away later or maybe later this year. And when we get it where do you like, where do you buy the second half of the year in . There will be value. We will see a challenging environment in the second half, african buns, mexican ball african bonds mexican bonds they will be cheap. The li came down below,ra is a deposit in the li the lira came down, is a good, is a bad . The dutch turkey doesnt do well in inflation. Anything that will bring inflation down is going to be good for turkey. Lets talk about the rword russia. You are say one of the currencies to invest is the ruble, why . The numbers start losing cents when you lose 50 , guess what . A rebound, it is achievable. You are saying a mere 5 or 6 or something bigger . No just a little from a very low level. Other currencies will be faced with a stronger dollars. The ruble is one of those things. Besides that, what ive seen it rather read us is rather reassuring. What ive seen is rather reassuring. The institutions, a reassuring message about the sector that to me is the right signal. What worries you more declines in price over 50 . Global growth or china . Emerging markets get 2 3 of that pie. I do not want to over dramatize because if you look at the global picture, Lower Oil Prices is a good thing for the ruble and for emerging markets. It is clearly a sentiment element to that and basically what you are saying is the fears will not be addressed by a strong policy risk of bond is good for sentiment. We are waiting for the ecb. What if they come and then it will turn around. What about china . With her they are accelerating ever structure project we heard they are accelerating 1. 1 trillion of Infrastructure Projects. What are we expecting from the government . And theyre looking at the growth targets. We have seen the authorities reacting to what we are seeing now is a shifting, where they are going to put their buyers and also explored other revenues. Great to have you with us. Benoit anne. We will see where we go. Well done. Thank you for joining us. Join us on twitter, join the conversation. I have tweeted out something early from wolfgang. He told us it does not makes us to talk about a great departure from the eurozone. He said come on this program and you never know what you will get. Crocs what is that what is coming up . Should europe the world would about worried about stay with us. Time for the art charts. If youre worried about greek contagion, take a look at the yield of government bonds in italy spain and portugal. This is a 12 months chart and this is the countries. Italy is the white line. It is declining. Spain is up. Portugal is 2. 54 . They are at or near record lows. Compare that to what is happening in greece especially since september. Yields as you can see how moved from 5. 5 in september all the way up to close on monday at 9. 67 near the highest in 15 months. It is worth remembering this on the yield, 10 year to reach a record high of 34. 9 in december 2011. We have a long, long way to go to we get there. If greece was to exit the euro which is the pot was the worst possible outcome speculators would immediately size of the next potential victim. Were talking cyprus, portugal, spain, and italy as well. Remember, italy yields back in november 2011, at the height the greek fear, was 2. 7 . Portuguese yields rose to 70 in january. We are far, far away from those points. I want to finish with so words of the chief economist he said it would be a nasty precedent if the grizzlies encouraging others and it could be fragmentation. Losing one member of the family would ultimately open pandoras box. Is your worried about greek contagion . These bond yield tell us know but keep looking at this chart and we will be doing so regularly in the next couple of months. Lets turn our attention to the tech and the titans were at las vegas. Startups are innovating their latest gadgets. For the first time, we heard from sony about the hack attack. Our resident expert caroline hyde. Sony was combative is that fairly they chose the biggest trade organization 160000 people over two miles of space. This is where kazuo hirai the chief executive of sony, decides to make his first Public Statement about the hack and the u. S. Increasing sanctions against north korea. All involving the hollywood film studio and the interview film and he spoke of pride for his employees. They were unfortunately the victims off one of the most vicious and malicious hypertext we have known certainly in recent history. I have to say, i am very proud of all of the employees and certainly the partners we worked with as well, who stood up against some of the extortionist efforts of the criminals that attack Sony Pictures and its employees. Talk talk the pr disaster. And they reversed their decision and they ended up putting out the film the interview and said let me stand by freedom of expression and speech. Amongst all of this, he unveiled products and was about ultra high definition, atv and a phone and some of the key pictures. You made manus feel bad, he should not have bought that tv. That is sony and the conversation around the hacking. Other interesting announcements out of ces . Absolutely. A big arrival of sony, all about the internet and connected devices. They are putting their money where their mouth is. The internet of things could be worth 7 trillion by 2020. Samsung was showing focus on connected devices. Arguably, it is the most important topic for our industry right now. The internet of everything. Ahead of the curve, you said manus. You will be able not only to tell what you should watch the but no, no. This is the future. They are spending more than 100 Million Dollars on developers to connect things. As most curved hdtvs. As well as curved hd tvs. Whether it should be consumer electronic, whether it should be without car event of the year. A record amount of automakers are at ces this year. Trying to grab back the limelight from google and goal went in at the front pages about self piloting cars. You have the big carmakers trying to fight back. You have a mercedes owner, daimler and they took to the helm talking about their new concept car. You have seats that will slowly brown, the steering wheel. They want us to be a cook who cocoon on wheels. Bmw is out there with using samsung and they are trying to steal the limelight. I remember some time ford and how hed get the Car Companies will want you to see cars as your latest apps, whole life connect at the touch of the button. Caroline hyde, thank you. We take a look at a record year or automakers in the u. S. And explore what oil has to do with the story. Lets talk oil. The u. S. Benchmark all and the low 50. Is back below and it has been for the past hour. In the 49 range. It hit and fell below 50 a barrel at 4 25 p. M. London time yesterday and battered u. S. Stocks. In fact, the Energy Stocks and the declining oil price was responsible for about 25 of the dows declined. Bp is down 5 . We will be watching bp because we are seeing more weakness in the price. All eyes on brent. Brent is about 50 but not too far above. It has been falling. It is down by 1. 3 this morning. Yesterday, down at 6. 6 at one stage. But how much of the u. S. Car market benefiting from the Lower Oil Price yet . As much as equity markets have reacted negatively so far, it seems in the short term we speak to get jose is good for consumers. It is a huge boom for carmakers especially for suvs and big trucks. It was all for all of the carmakers year on year especially gm who was up 19 and chrysler up 19 . This is playing to their strong hand in trucks and suvs, chrysler, by the way up. Really good for carmakers. Not good for the stocks of the carmakers. They were all down. It was a brutal selloff yesterday on the dow. That is the point of the story. Thank you, ryan. On the move is next. They will be talked to the chief u. K. Economist at Goldman Sachs about 2015. We will see you tomorrow. Good morning. I am jonathan aero. Moments away from the start of european trading. What a 24 hours we have had. Lead Global Equities selloff. The worst day in three years. Japanese stocks dropped and oil markets tumbled. A sign that major producers are willing to cut supplies and concerns about Global Growth. China responds that bloomberg learned that china is excel a ring Infrastructure Projects. It is an effort to spur Economic Growth and ensure gdp does not go below the magic 7 . The markets are opening up. We are checking on future markets. The dax future is up. The markets are opening up in europe and manus cranny has that. A reprieve. Scraping based on the news that saudi arabia has risen the price of which they are prepared to sell their oil to asia coming off of a record low. There is a view that the oversupply situation that you have and the price declining in oil will get the factors out of production quite quickly and