We are here at the European Headquarters in london. Coming up on the program, we go behind the scenes of pro cycling. Were going to take you on a tour with the leader of the top team in the Tour De France to make sure what may to find out what makes him tick. The new car for royalty and the superrich. We begin with a bloomberg tv exclusive. Over the weekend, we were speaking with frances finance europe economic conference and he said he would like to see less dominance of the dollar. We sell ourselves aircraft in dollars. Is that really necessary . I do not think so. Airbus can sell it to air france in euros. It would create stability for airbus and air france. So we can avoid this Exchange Rate risk. Euro really be an alternative to the dollar considering that 60 of the reserves of Central Banks are in dollars . Diminish financing costs in our economy by labeling more than other currencies. This is not a fight against dollar imperialism. ,he goal is to fight stability to reflect the financial and economic reality of the world, that the world can be more stable. Do you think we will see more european banks get a fine like bnp did . Europeanhere are other banks which are concerned by the same questions. But the past is the past. The u. S. Justice system is independent. But we are looking at the future. It is in the interest of everyone to create a better balance between our currencies. Is the french government going to take the lead . France is in europe, so it is up to the eurozone to lead this argument. Ministerench finance speaking seeking to bolster the euros role in global trade. For more, lets bring in jonathan ferro. Is this a reaction to the bnp paribas case because they are flustered with the fine . That is all it is. One of their babies, a massive french bank, had transactions carried out in dollars with countries under u. S. Sanctions. For me, you would think the french politicians might be a little bit more concerned that one of their big Corporate Giants has conducted themselves in this way with a considered it with a significant lack of compliance. The problem is that the u. S. Laws extend outside of their borders because many of these markets are dominated in dollars. I think the former should be a bigger concern, but maybe not. Ceo talking about conducting some of these trades in oil in euros. And the french politicians officials want more trade conducted in euros. Fine. But they also want a weaker euro. Do those two things add up . Maybe not. The most noise coming out of a french economics conference in the south of france is about the dollar versus the euro. When the French Economy is on the cusp of a technical recession. For me, i would want my finance minister going down there and banging the drums on the reforms they are going to introduce and how they are going to make the French Economy competitive again. We did not hear that from him, instead a nationalist rant about the eurozone. They are talking about using the eurozone a little bit more, but they were beating the drum on making the french government carry on through with the reforms they said they would do. Is he on board . It looked like he had an agenda and it was not reforms. It is interesting to see how the tune from hollande has changed as well. He famously said that finance is a faux. He now says a good finance could be a friend. Perhaps a soft note the a soft note. Them, of course. Thank you so much. We will see you later in the hour. We also caught up with the ceo of orange and he told us he would like to see more m a in the sector. He wants to see some of his smaller rivals start to consolidate. I do believe that the french are at a critical size. One day, i believe we will probably switch from 4 to 3, as is going to be the case in germany or ireland. Anything that will happen, bringing the French Market to 3 players would be a positive move for orange. Clearly, orange was not the best place because we are the largest operator and also we are probably the one that needs most this competition. Bouygues, iliad, we still have room to see some maneuvers. Thise still ready to take game. I do think it is a necessary move for the consumer, for the investment, and for the country. There should be more would more m a, and that stop the price wars they are seeing in french telecoms. More from the conference here on the pulse. Merkel is inellor china today. It is her seventh trip to china since she became chancellor in 2005, the second day of her trip. For more on what is on her agenda, lets bring in hans nichols live in berlin. What else is on the agenda for merkel . Trade and there are new bowl lighting plant that will be built in china. There are new volkswagen plants that will be built in china. Also, what is the latest on this double agent . We will talk about that in a second. You look at the number of potential drivers in china good it will be one billion why since he is in 1015 years. Right now, there are 250 million licensed drivers. A massive explosion. If you look at vws numbers alone, about 1. 5 million cars were sold in the first few months of 2014. They expect that number to go to 3. 5 million. Saying that growth is explosive there. 15 , 20 lking 10 , year on year. They need to build factories to have those cars and that is part of the german strategy. When they are looking abroad, they are looking towards china for exports. Eggs are slow here in terms of industrial output. We are seeing a slight cooling of the german economy. The business ties all sounds well and nice. Everyone certainly want that. But there are a few sensitive. P. And the as i whole spying debacle. What are we hearing from Angela Merkel on i. P. . They need to go through the motions to talk about the importance of intellectual property and not to have any taking of it. That is very clear. In a way, this is a corollary to the debate that is happening in germany about what to do with the u. S. Eu free trade pact. They want assurances that data will be protected. Any prospect of a freetrade pact was dealt another serious blow over the weekend with reports that there is a german secret agent, a double agent that works for the German Spy Agency and also doing work for the u. S. Spy agency. I know you love this read this alleged spy was transmitting information back on a fake weather app. I am going to look at how many weather apps you have and try to assess who you have been rooting for. Yahoo is one of the few things i am still really them really dominating. Thank you so much. Hans nichols, our international correspondent. Coming up, we are going to talk more about merkel in china. We are going to look at germanys prospects for competing with both england and south korea. Welcome back to the pulse. Angela merkel is visiting china at a time when ties between the two countries have never been stronger. Frankfurt pushing to become a Global Trading center for the yuan. For more on germanys prospects competing in the global currency markets, lets ring senior of fx strategy at ubs. Frankfurt competing with london and even south korea all to become trading hubs for the yuan. Lets start with the basics. Why is it so important . Why does everybody want to be a Trading Center . It depends who you ask. ,rom the chinese point of view internationalization has been going on for a while now. It is threading around the world. There is a perception in the country on the receiving end of these trading hubs that they believe the immediate benefit will not be from jobs, but it will use transaction costs and Capital Markets in particular. For example, companies will be able to issue offshore in these respective centers and that leads to job creation and boost economic ties between the nations. It can only be a positive. Where does frankfurt stand in the running . China is germanys third biggest trading partner. Frankfurt is fast becoming a leading offshore hubs. Will be infrankfurt an extremely strong position if there is some sort of Exclusivity Agreement with the chinese. So far, within the eurozone, they will be the only hub in the immediate future. Thatve had some reports paris will not compete directly with london because london is the hub in general, but in terms of transactions, from a trade respecter, frankfurt is uniquely positioned by virtue of their trading relationship with china and the fact that there will not be any competitors in the near future. If they can sign some sort of exclusivity deal. Or you think that will happen on this trip . Trip, the chinese and the president did agree with the germans. The actual negotiations are done we will not see any immediate investment. And madridlows paris to become trading hubs, i think frankfurt will. Far are we from the u. N. Becoming a fully fledged reserve currency . I think it is still going to be a long time to come. It has a better prospect as a reserve currency than as a payment currency. If you look at swiss data from going he dollar is why is that . Is it because it does not have the liquidity or depth on the Capital Markets . It is a combination of everything. They achieved payments faster so you have capital controls, which limits the ability to show up in the swiss data. As a reserve currency, i think more and more Central Banks want to wean themselves off of the dollar preference. Allows ale, frankfurt greater pool of assets to be available to these entities and why not . Who is buying . You mentioned Central Banks. Which Central Banks . I think the largest central , they know their size is just too big and it makes a big portion of that benchmark. Does, there are specific allegations. Llocations. Ions a you need to qualify for Institutional Investment status first. We want to show our national populace that we have the diversification method rather than incorporating it. That is the first step. There was a conference and we heard a lot of bluster about wanting to reduce the dominance of the dollar. We heard the french finance minister saying how there is no ,eed for airplane financing traditionally done in dollars, cannot be done in europe. We also heard from totals ceo, saying you could be buying oil in europe. Do you think we will see a shift from the dollar into the euro or is it more likely that the u. N. Will step in . I think the french finance minister should check his figures. Waslast two years, the euro actually larger than the dollar as a payments currency. Of 2014, the dollar took over the euro again. I think that is a perception not backed up by hard data. Show, if the euro could that we have resolved institutional deficiencies within the eurozone, that you do not have to worry about breakup risks, if they cannot guarantee that, then i think it will just be a hindrance to the dollar, to be honest. What is your outlook for the euro now . It is still weaker, but it is more of a dollar stronger story. The parity is not happening. If mario draghi goes to qe, what doestv that do for the euro . Depending on how the market interpreted, the market will come down. Future, wediate think the catalyst will be u. S. Yield going higher. Juckes on from socgen. His target is 1. 32. What is yours . We are looking at 1. 25. It is a lot more aggressive. Our forecast for the u. S. 10year is aggressive as well. It is predicated on the forecast. If it happens, you can guarantee volatility and yield differentials will be in favor of the dollar. Has ubs wrought in the rate hike forecast since last weeks jobs report . To be honest, it is quite aggressive already given where our federalization forecast is. We think markets are underpricing the strength of the u. S. Economy right now. It looks like mark carney could be the first central banker to raise rates. We still think that will be the case. Sterling sustain its current gains. We think it will top out around 1. 73. Having said that, we would be happy to be short euro sterling all the way. At the end of the year . Back to 1. 65. Euro sterling back onto 1. 78. Thank you so much. Nice to see you. Still to come on the pulse, inside pro cycling. We take a spin with the owner of the top Tour De France team. Welcome back to the pulse, live on Bloomberg Television and radio and also streaming on your tablet, your phone, and bloomberg. Com. I am olivia sterns. It is time for a look at todays hotshots. A worlds best freeride mountain bikers battle it out in the diamond series world to her, pulling off some highflying flips. Compete in five stages of the competition irrelevant. Around 15,000 fireworks displays took place across the u. S. This weekend to celebrate independence day. One of the best was this amazing closeup captured using a drum. A drone. And there was no shortage of action at this years indy 500 race in pennsylvania. Montoya sped to victory in the fastest rates in history. The average bead was just over 200 miles per hour. That is incredible. Now lets take a quick look at how the european markets are trading this morning. Manus cranny has more. I talk fast, but that is a little bit too fast for me. Equity markets having a tough start to the week. A couple of various things at play here. 25 . Down by german Industrial Production is down for a Third Straight month. You have the confidence data coming lower. The imf beginning to talk about possibly being unhappy with the levels of growth. Goldman sachs also move their view on the timing of u. S. Rates. They think that the fed is going to go for a rate hike in the Third Quarter of 2015. That is pulling it forward from the First Quarter of 2016. The other dynamic is this. The extra yield that you get for your dollars is at the widest versus your peers in the g7. That differential stands at 75 basis points. Indicator of a renewed figure in the dollar. Basic resources are lower, banking is lower. The perspective on the fed is critically important. A couple of companies have delivered some information for us this morning. Matterscomes to great in the netherlands, these guys have raised their operating cash level. A little bit of good news for them. Will they or wont they . What price will anybody pay for shyer for shire . The frenzy in the market seems to has seems to have dissipated. And when all and renault had a good first half. The kind of models that are selling europe sales rose by 18 . Argentina, russia, down double digits. Argentinian sales fell by 20 . Russian sales fell by 10 . We talk about the differentials in terms of what is going on in the currency market. Eurodollar trades just under 1. 36. Traders have not been this short on this currency since 2013. Momentum is building on the short euro position. Back to you. Thanks. As we head to the break, it is time for todays pulse number. 54,250. That is how many tennis balls it took to get through the wimbledon championship. The balls are stored at 68 degrees fahrenheit and changed every ninegame. The official ball supplier for wimbledon since 1902. Later on on bloomberg tv, we will be talking live to the new wimbledon champion, novak djokovic. The bead Roger Federer in five sets to reclaim the number one ranking. Welcome to the pulse. I am olivia sterns. Here are the Bloomberg Top headlines. Said that theer eu needs to get past the nomination of jeanclaude ju ncker. We need to get past the situation and think about our common interests which is to Stay Together in would be a weakening if we separate. It is our good luck to have it. We need this gateway. Chris Goldman Sachs is opening a private lending the unit according to the financial teams. Aeyre looking to build up to 5 billion loan in three years. Goldman sachs has not confirmed the accuracy of the article. Novakhat Djokovic Djokovic beat Roger Federer. To the newspeaking champion later on today on Bloomberg Television. Lets stay with the world of sports. The tour day france kicked off this weekend but not where you would expect. Northern england and all places. Ryan chilcote caught up with one of the owners of the top teams. Oleg tinkov was the champion of siberia before he made millions of dollars in selling russian beer and credit cards. Now pumping his money into his own team. He wants to talk to me about it while he does a little writing of his own. What about making money and to what extent is it you are a rich guy and you can afford to have a team . I would rather spend money this way. We are a week into the tour with one of best teams in the business and we have full access. Justhe gowex riders another day. Cover 30,000 will kilometers a year. Theyre just a couple of hours before the punishing 219 kilometer race to the top of a swiss mountain. The race and its time to talk strategy. 200 kilometers ahead of them, the team owner, tinkov, is attacking the finish line. He rides at least part of each array society likes to win. Checks the bus, tinkov in with the team and they are in second place looking dangerous. Are on the final stretch and not the only ones suffering. Tries to find a tv for the finish. A real good job. You can do it. We have to finish the job. They were second. Chris the Team Finishes three seconds behind the winner. Are you happy . No. Not at all . We got second place. To be second. He is one the most competitive, driven people ive ever, across. Come across. I make money. Rising from Humble Beginnings to become one of russias a most successful serial entrepreneurs with a bang on the stock exchange. Bank on the stock exchange. The time he spent eight years on the cycling. From war, right windchill cold joins us on sat. An extraordinary piece. For moore, Ryan Chilcote joins us on sat. Did he really say that owning the team is better than going to a casino or getting prostitutes . Yes. He is from a different world. Cycling team as a professional writer himself because he is passionate about writing. He wants to win the tour day france. Writer riter rider did very good. They are in contention for the title three weeks down the road for that he is a businessman. He is the Richard Branson of russia, a serial entrepreneur. Especially there is competition, as i figured you get, they do not like to lose money on any venturer. He likes to make money or narrow his losses. For me, if he is a richard nson, fine, can he do what did for chelsea . We talked about that. Cycling depends on sponsors. [indiscernible] want to change cycling. We want to make it more commercialized. Number one is some from other sports. [indiscernible] it used to be run by continental. It is like other businesses. , it is bigger corporation. We are at the beginning. Once we get together and create for ourselves [indiscernible] we have to great some interest. More popular. Cycling is the third or fourth sports patriotically. It is losing the business. That isone Company Making money. They make a lot of money. A lot of money. Hundreds of millions of euros. It is like they never paid for their performance uin the theaters which is a stupid idea. New york toed ball boycotting you haveday france . Talked about boycotting the tour day france . Is that a good idea . [indiscernible] the sponsors are pushing them off. [indiscernible] station would never pay. They are blocking this. They would never. Teams, butrench who is going to watch . You think the doping scandal has gotten in a way . When the big advertisers pulling out . I may be naive. There is no more doping. Nothing related. Five years ago, 10 years ago [indiscernible] it is over. 10 years ago, sure. There is no doping. It is gone. You heard him mention the italian and that won last year. He won the stage yesterday. Talk to murdochs man. He owns team sky. Tou and we will continue our coverage. Why is the Tour De France inamed . Theres a prologue and this year it is in the u k theres a lot of people that cares about cycling. Even though the teams do not make money and so the company that owns the 20 france makes de tour day france france. Half of the county. Is the planet watching . Cup. Ng with the world int nation brazil suspension. It is appealing the suspension of its cap captain. Thats after brazil leading ar was hurt. The government is trying to entice rebels out of the jungles to watch the world cup games with the rest of the country. Television advertisements asked how they can miss the world cup, the biggest spectacle and said the country is saving them a seat at the Biggest Football Party . Arrested anlice argentine fan who disguised himself as a swiss supporter. Isl below Pablo Alvarez one of thousands fans with a history of violence at games. He posted a picture of himself dressed as a swiss fan. Up, driving this is in china and alibaba is going head to head with uber and will details on the battle. Welcome to the pulse. I am olivia sterns. Service is stepping up to uber china. Lulu chen joins us with the details. Hello. Tell us the story here and the new expansion plan. Sure. Idi its pretty big in china and they are focused on taxis and they are trying to go to high end and they are the main competitor with a service that is backed by the largest asian Internet Company and has to do with expanding revenue channels and one of the main reasons is they are cash burning companies. And they have not been able to find a sustainable revenue model. There are regular areas of uncertainty in china out there saying the government has been thinking about centralizing these platforms and offering , an under a platform umbrella operated by the government. Is a mixed vendor of revenue channels. What does it mean for uber . Are they both competing . Ride is rolling out new uber is rolling out new highend cars . High they have been successful. They are hiring and expanding across china. So far, they have not committed too much competition partly because they have been targeting different customer segment. Now that kuaidi has announced they are under the same Business Model as uber and theres a company that a lot of backing from alibaba and lots of cash and lots of technical knowhow, it is a game changer. Probably game on for uber. Lulu chen, thank you so much. Mercedes is given that one of classp of the line s carson site is not for everyone. Than 1 million. Matt miller got a ride. Bmw has a rollsroyce and audi has been late but what does have . Her germany maker s classl bring back the plated with armor that cost over 1 million. Twice the price of the most expensive rollsroyce. And as a royalty and the rich, the s class think of as a of seats with two rows and a show fors cabin. s show for chaufferu cabin. The car is meant to invoke the 600 series. Owned by celebrities like john lennon. The bmwying to overtake as the biggest luxury carmaker by the end of the decade. It requires mercedes to produce a much cheaper cars like about 29,000 cla. Keephave to be careful to the luxury luster and they are doing the with high margin cars. Maybe they needed to bounce out of the bottom with the unattainable luxury car will work its magic on may about. Maybach. There are rumors. Of more than 1 million, twice expensive as a rollsroyce. I am guessing it is a product targeted to the u. S. Of market because i cannot see it had all the terms and in the streets of europe. Cleaning up chinese coal. Vision forels green china. Welcome to the pulse. I am olivia sterns. It is time for the new energy. Merkels trip to china has talks about the environment. Joining us is jonathan robinson. Good morning. Thank you for coming in. What to do the germans want to sell and what to do the chinese want to buy . A german, the capabilities, pollution control technology. And also for the water management. These are the secondary areas of why germany has interest. How big is the demand . We hereby for dirty coal plants a you looking at terrible pollution. Kristen bell coal plants are quite a bad. The coal plants are quite bad. Really think some the other areas they can make an impact. Industrials that can be cleaned off. Waste energy is something that is huge in china and will be huge in china. Massive as show growth. It is their undeveloped. Are you expecting any new deals . There are always things that come up. I do not know if we will cease on the megadeals. Nobles . Bout were renewables . What is it like . Will there be much cooperation . Not really. China dominates renewables and now solar market. And turbine manufacturers big players. Little that can be done there. You can argue with biogas. That is massive growth area. Long,y was leading by a long go away. This is something where china at the moment has not been him to scratch the surface. How big of a problem is chinas dominance of were nobles . It has been a massive problem. It has forced many german businesses out of business. It has been a huge, huge problem. It is over with now. Dominant. Oo what about the electric car market . We hear both way and will be spending 2 billion euros on a new plants. What are the prospects for electric cars . Very good in china. Legislation that will take place at next year to reduce taxation on cars and banning cars for many parts off some of the first time. Takeric vehicles should off. From a german perspective, they have partnerships with local players. Highendfocused on the stuff. They want to get in with top end like a mercedes. They are looking to really exploit in the highend market. China loves german makers. You pointed out we may not be better off with electric cars. In china . The difficulty is the electricity is generated by coal. The overall impact in that sense. In the air quality in cities is will be. Real gang big savings for cities. The pollutionif is coming from cars or dirty plants . A boat and polluting streets nearby. Both and polluting streets nearby. If you get the deals and move the industry, you are minimizing the problems that it will take time. Nice to seerobison, you. For those listening on bloomberg word is comingt up. He second hour of the pulse is coming up. An interview with michael sapin. Taking on the dollar. Friends finance minister france pr friends minister. C trade betweenre the countries. Good morning to our viewers in europe