Good morning, everybody. You are watching the pulse. We are here in london. I am guy johnson. What else have we got coming up today . Table that assemble your or transformer shelves into chairs. Eet the room bots plus, appealing to the masses. The first public play traded company to raise equity through crowd funding. How does that change the game . Lets get to our top story. The Scottish Independence vote. Sterling very much under pressure this morning after an opinion poll showing that the Scottish Independence campaign gained a lead for the first time this year. Next week, scotland votes on whether to break up the union. Anna has been tracking all the action. Good morning. The poll is interesting. The headline number is maybe slightly less leading misleading, but it is the first time using the configuration they have given us that we are in front. The first time that the yes campaign has been put in front this year. That is why it has significance. Upholdas another poll, the typically has been a little more sympathetic to the yes campaign. Crucially, that campaign hasnt actually shifted must since june. Runsoke to a professor who the poll of polls. He is trying to put all this in context for us. Buttill has the yes behind it does show that momentum seems to be building with the yes campaign. He described the swing that we have seen as remarkable. Go back to the words used by the yugo president. He says the yes camp has not just invaded the territory. It has launched a blitzkrieg. The fact that this one poll, which hasnt changed significantly in its methodology, as it going from a 22 point lead for the no campaign replaced by a twopoint deficit. Remarkable. Not entirely unprecedented perhaps. There was a build up for a separatist Campaign Just before the polls. In that case, there was a no vote. There are limits to which you can draw on history. Huge momentum. The political response in westminster and here in london has been remarkable. Some dawning realization seems to have happened here. Exactly. Dawning realization for markets and politicians as well. We have had the pound weaker in asia trades though we were being cautioned about reading too much into what happens in asia trade. Some people will be meeting to decide how they position themselves with this new information. Some institutions will be working out where they put their money. The pound has been down against the dollar 1. 6 last week. It lost more than 5 of its value against the dollar since july. I had an interesting conversation this morning. It is not a simple question of working out if scotland decides to leave. It is not that simple. What is more important is the huge distraction this but comes for u. K. Politicians. If we get a yes vote and try to work around a different way of doing things, stocks also under pressure as a result of this. Standard life, only 8 of their customers are scottish but they are based in scotland. Owns scottishng widows. Rbs. Many are suggesting that there are lands, they are considering moving there across the border. We will find out what the latest is. Thank you very much indeed, anna edwards. Have a lot of coverage over the next few days. In ukraine, i ceasefire is being tested as ukraines government and prorussian rebels report truce violations and casualties. Lets get the latest from ryan chilcote. Thing to say is that this truce will fail. However, it hasnt yet. The indications we are getting is that the violations or alleged violations of the truce that we heard about over the weekend appear to be declining. We have heard from one of the rebel spokesman, the deputy Prime Minister of the donetsk beagles republic donetsk peoples republican, saying what the separatists are seeking is autonomy within ukraine, not independence. If indeed, he is being sincere, that would be a positive for the peace talks. The ukrainian president saying they are prepared to give Eastern Ukraine a great deal of autonomy. He is also saying that we can anticipate an all for all prisoner swap on wednesday. If that goes forward, that would be the first real test of the political solution. Not just making sure the guns remain quiet. Talk to me about the sanctions story. A lot of people are trying to figure out whether sanctions are working and whether we should put new sanctions on the table. The sanctions are still on the table. They are expected to the agreed today. We were expecting them to be agreed on friday of last week. That was the selfimposed deadline. Agreed today, published tomorrow. The wall street journal reported have several companies not affected by the sanctions thus far. Restrictingng about Russian Companies access to European Capital and market. ,e are talking about gazprom vtb andt as well as bank. Bank zber the feeling at the nato conference was that sanctions should go forward in any case. If this truce sticks and russia rolls back the troops it has in Eastern Ukraine, that would be an opportunity to suspend the sanctions, maybe even rolled them back. Brian, thank you very much indeed. We will continue to monitor the situation. Ge is selling its appliances business to electrolux for 3. 3 billion in cash. The company is making a big bet on the connected home and appliances that talk to each other. The internet of things is part of this deal. Lets find out how big the deal is. Hans nichols joins us now from berlin. Clearly the, markets like this idea. Electrolux stock is almost up 7 . It is a 3. 3 billion sale from ge of their appliances unit. 90 of ge revenues from appliances come from america. For electrolux, this is an opportunity to get a foothold in the states. If you do think the internet of things is going to take off and we all are going to be cooking with steam in our ovens, we spoke with the chief Technology Officer of electrolux on friday. He said this is about connecting the home. The internet of things which also comes into the kitchen. It will help you to get the recipe right. You can process through it as a professional chef. And then, maybe go out of the kitchen into the living room to socialize with your friends and watch through a camera what is happening in your oven, and have that peace of mind and control that you want to have while you are cooking. You and i can have a debate about how far away that is going to be. Clearly, all these companies are making big investments. Not ge though, they want to be more focused, more streamlined on industrial industries. Here is what the ceo had to say about the deal. This transaction is consistent with our strategy to be the worlds best infrastructure and technology company. They close that sale of Alstom Energy assets over the summer. Ge gets more focused on largescale products. Electrolux makes the product for our home. Either way, we will be cooking with steam soon. Do you have that expression, cooking with gas . Very much. You are cooking now. I think it came from advertising schemes a while ago. British gas, i am assuming it was. It may have been the ipo. Definitely a phrase here. All right, well we will be cooking with steam soon. It sounds less exciting. I dont know why. Hans, as ever, from amanita cooking, he is on hand. Chief correspondent and chief food critic. Ryanair. This is a ge pivot. Ryanair is poised to place an boeinglion order for jets. Ryanair has pushed boeing for a new version of the plane which has more seats. Kari lundgren joins us now with the details. Good morning. I was thinking that ryanair just place a massive order for the old version of the 737. Here they are about to place a massive order for the new version as well. Absolutely. They made the order early last year and they said at the time that they were interested. There were maybe a few tweaks that they wanted with the plane. A lot has happened with ryanair tints they placed that order. I cap asking every time i spoke to michael oleary. It has kept on getting the lady. Now, they are suggesting that they are nearing the point. There is going to be an announcement later. Ryanair has had so much on their plate in terms of image revamp. You do wonder if part of the delay in getting this order out alsot only the delay, but making analysts and the market convinced that their whole revamp of their image was actually going to work and that customers would like it. Ok, so they need to know that their Business Model works. Placed has always aircraft order at key moments in time. When boeing was forced into making the switch from the 800 and announcing the max because of what airbus had done, again, there was a part of the line that they were making that needed a bit of longevity to make the flip. He got a good price on those as well. This doesnt feel like that. Wonder if thisto is more about ryanair and their growth strategy. They are looking to expand. When boeing came to them and said, we have 11 more seats on this plane, that means two inches of narrowing between the rows, an extra emergency exit bind the wings. I am sure the negotiation was a tough one. Michael oleary is not someone who will take the price offered. He will negotiate. Plane definitely fits in with their strategy. It is very efficient. In terms of the competitive environment, they are really trying to push into eastern europe, up against what easyjet is doing. Inches going to get two less between the seats. Those need lockers everybody has been talking about. The leg defenders. Can you recline your seat . If i remember correctly, you cant. They have avoided this whole issue. Bachelor parties and bachelorettes i guess. Thank you very much indeed. Kari lundgren. Stay tuned, later on we are going to be speaking with ryanairs ceo, michael oleary. That is happening around 4 00 p. M. London time. Looking forward to that conversation. Coming up, a wakeup call. We are going to dig into the results of an independent poll. That is coming up after the break. There should be no doubt about the consequences of this decision. One of this is, the government would not be sharing the pound with the rest of the United Kingdom if the separatists win the vote. Chancellorcourse the George Osborne speaking over the weekend, talking about scotlands push for independence. One of the key things we are watching this week is the polling data. Scotland will vote next week. The latest whole shows scotlands nationalists overtaking opponents of independence for the first time this year. The yes vote has increased to 51 while the no side dropped to 49 . Here to talk result is tonya. Good morning to you. A significant swing. Really quite significant. What is that because of . This is the first time we have seen the yes side overtake the no side. What is most impacting on this is how it has changed over the past month. Two weeks ago, there was a 14 point gap. Now it is overtaken. Why is this . It could be a possible number of reasons such as momentum, the coverage it is getting, and people thinking about it and deciding what they want to happen . Both numbers exclude the reason for that is, you want people with an opinion. The result is excluding those who dont know. Those who have an opinion. Out of curiosity, how many of the people are saying, we wont vote . Butt is not most of them there is a Certain Group of people who are still undecided. In terms of the history of this and precedents of this, how can i benchmark this . Can i see this as an election . Should we benchmark this against other referenda, how should we see this . This is a different type of election. Compared to what we know about such things as the general elections, what we see is that generally there is a move toward the status quo. With this type of election, it is different. This is what has gained massive headlines because of the movement and the impact of that it. We were talking to pollsters earlier on. He was saying that the poll earlier on in the process was a little low in terms of where the yes vote stood. Is this just you guys catching statistict a simple and the numbers are settling down a little bit, or is it more than that . At the moment, we think it is too close to call who will win the referendum vote. That variouss things are impacting what people are thinking. Ugov has traditionally shown a larger lead for the no campaign but this movement is showing that in the runup to the referendum, anything could change. It is only because the other polls have been more stable. They are not showing the swing you are showing. Is your methodology, do you think . It could be that. We take a weighted sample of people. We make sure the people taking the pole are representative of scotland as a whole. We make sure we are getting the right groups of demographics. Is this momentum going to continue . Aappreciate that we are in position where it is too close to call but the momentum is with one side. When you look at the data, when you look at the history, all the sort of precedents, is there a sense that this will carry on, or actually we are done with it now . This is what the yes side are hoping for. They are hoping to maintain that momentum. They are hoping to attract demographics that are coming towards the yes side. Women, the younger, and also the working class. The no campaign, they are hoping that people will see the results and probably rethink their decision, consider all the possibilities in the hope that there may be a shift. In terms of the breakdown, you talked about the demographics and the younger vote coming through, in terms of the political breakdown, how does it work . That this is a swing within the labour party. We definitely see a shift within the labour supporters going to the yes side. This is somewhat apparent with the liberal democrats. The conservative party are very much within the no side but we have to take into account that the tory population within scotland is relatively small. What we can conclude from this is that labour support is considering a shift towards the yes side. Thank you for coming to see us. Tonya abraham. We are back in a couple of minutes. See you then. Welcome back to the pulse i have an asset check for you. Equities down across europe. The ftse 100 down by 0. 4 . Lets show you some of the biggest movers. Lloyds down by over 2 . That is one of the biggest lenders from the u. K. Scotland moving markets this morning. Who would have thought . You have seen the poll giving the edge to the yes camp. Could scotland exit the u. K. . The pound has gone from 1. 72 down to 1. 61. Exit risk. That is something we havent talked about since 2012. Are there any parallels here . We can talk about that after the break. The pound trending lower, scotland moving markets. We will be back in two. You get the treat of guy johnson. Welcome back. You are watching the pulse. We are live from Bloomberg European headquarters in london. Lets talk tech. Alibaba could soon make ipo history, raising more than 24 billion selling shares in the states. Here with more on what could be the worlds biggest share sale, caroline hyde. Fairly substantial valuation. When you compare the money this business makes, the scale of its you begin tochina, understand why it is so enormous. Biggest player in china. Already it has got 279 Million Euros users. It is the growth we are expecting. At the moment, it is 632 Million People connected. That is bigger than any population in the world apart from india. That is how many people are already on the internet. More than a third are meant to get on in the next two years time. This is the biggest player in china at the moment. This is similar to ebay or amazon. 160 3 billion is how much we are expecting overall. More than 95 of the rest of the s p 500. This company is just expanding. It matches up businesses and potential buyers. Buyers and sellers takes a nice little commission. It also gets advertising. There are flash sale websites, virtual mall websites. It is not just chinese growth. It is outside of china. Express, already one of the Fastestgrowing Companies in russia. You have also got it in english. Many feel that outside the mainland, 50 Million People, they too will be lured onto alibaba because of the wide range. You get mung bean powder which you might want to cook with. You might. The fact that you have got more than the entire population of argentina living outside the , they want to get this investment. As with all these tech companies, there are risks. Can it migrate to mobile . What is the competitors story looking like . We have Corporate Governance as well. This is why it is going to new york and not hong kong. Hong kong didnt like the Corporate Governance. U. S. Likes them more. Facebook, google have this muchdent of setting how control you have. Alibaba has 27 individuals who ruled the roost. They decide who goes on the board, what company they are buying. In the same way that many people are slightly worried about what Mark Zuckerberg does, this is biting into a vision of the founder, his team. You are not going to get much control if you are a shareholder. Jack ma said that in his letter. Priority ourey customers. Second, employees. Shareholders, you are number three. But i will have your money. Finally, you bring up oculus. One of the interesting things in all these companies, shareholders to a certain extent are signaling this, they need to go out and spend money. Distraction is a thing you need to think about. One of the ways to do that is m a. It keeps you close to that story. Alibaba has a stake in a company in silicon valley. They are buying stocks. They are buying companies that do film production. They have got a stake in that. They have a messaging app. You can understand the messaging app, but why film production, white taxis . These are the sort of when you think about the distribution model they have, you could combine taxis and delivering packages. Arend also, Many Companies jumping onto uber as well. , maybe when your taxi arrives, you want to do some purchasing. All this is a vision that the founders have to tell. It all kicks it off in new york today. It is then coming to london. They are going to be in hong kong as well. Is the most acquisitive company in china at the moment. On average, two purchases per month. That is a busy team. Caroline, thank you very much indeed. Lets go on to another internet giant, google may be under pressure to make additional concessions to the 2010 settlement of an antitrust probe. Feedback has been negative since the eu competition commissioner hans nichols joins us now from berlin. We thought this was done. What is next . It seems like the eu is going to try to mediate this process. Google wants to resolve the issue. On the other side, Companies Like expedia are complaining to the eu. They have this whole process taking place. Seemed to be very negative complaints. Have a listen. The last version of the report, we came back to the complainers. The complainants have sent replies during the summer. Some of these replies are very negative. In some of those replies, some complainers have introduced new arguments, new data, new considerations. We now need to analyze this and solutions to find some of these concerns. That to me doesnt sound like a process for google that is wrapping up anytime soon. They are putting pressure on multiple fronts. Tomorrow, they will Start Holding hearings on this whole right to be forgotten. What can be erased from the internet . On the android operating system, there is some concern they may be starting a new probe. We are trying to receive from google some responses or explanations to some complaints that we received. These complaints put forward rigorous arguments that they have not found adequate solutions. The next step would be to open a formal investigation as we did four years ago. That seems to me like a pretty strong hint that a formal investigation may be coming into android. They are not at all happy with what is happening with the 2010 complained. This seems like we are in for some long innings for google. They have a lot more answers to provide to the eu and competitors that are raising these complaints. Hans, thanks very much indeed. Hans nichols joining us from berlin on the google story. Lets run you through the Bloomberg Top headlines. Chinas trade surplus climbed to a record in august. Exports rose. Imports fell for a second month in a row. The decline in imports was unexpected. It may show chinas Economic Growth target could be at risk. A coordinated policy response from regulators. This comes after lenders have sent socalled allowances to get around the ban on bonuses. Barclays, hsbc and lloyds are among the banks. There is a bit of a london focus here. Italys finance minister says his countrys lenders wont face serious issues in the upcoming ecb review. He spoke to bloomberg in cernobbio . The italian Banking System is in a very healthy position. They have done a lot of effort in increasing the capital. I am confident that we will not face any serious case. Been under a program for a number of years which has been large but also successful. It is now exiting the program. I am confident that this is going to be a success story. The shores ofom lake como. Lets show you todays pulse number. 23 billion. That is how much Renewable Investment in scotland is at risk if the country votes for independence. This raising questions about how developers would get their subsidies. We are going to take a break. We will talk more about green revolutions when we come back. Good morning. You are watching the pulse. English wine Company Chapel down is breaking new ground. It is the first listed company to raise new money by crowd funding. Company chosen to go down this route . Joining us now is caroline hyde. Good morning. This raises all kinds of questions. How did it come about . Why would a listed company come to you and say, we are not going to go the traditional route . I think chapel down chose to use crowd running for two reasons. They wanted to reward their existing customers. By allowing them to easily become shareholders. The second reason is as a way of acquiring new customers. Potentially, they have a very iconic english brand. They have an incredibly loyal base of customers. They learned early on that to have your customers as advocates of your product, there is no better way than having them share the success the business has. Obviously they are expecting this to help with marketing to a certain extent. Peoplethey build on going out, sharing this information . They are going to want to keep going. That is a great question. Essentially it requires momentum in what we call the network. Every time someone invests, we have very powerful social media sharing tools. It is more and more people hearing about it. Essentially, it is a very convenient and easy and accessnt way for them to these existing customers and new customers. They will be emailing and marketing to existing customers, telling them about the opportunity. The minimum investment is 10 pounds and you become authorized is an incredibly quick way of building that momentum. How does it work from a regulatory point of view . Shareholder,isting how am i positioned postwhat is happening with you guys . By there regulated platform. We have approved their campaign. , for that existing customer to become a shareholder, they have to be signed up. Part of that journey is they have to become authorized with us. That by high net worth, but also if they are not or wealthy, they can pass a very simple quiz. That is how they can demonstrate that they understand the risks of this. Holder, thereebt are various Asset Classes that fit within a hierarchy when a company is structured. You would be looking at how that hierarchy is structured to regain where do you fit into that process . They will be equity shareholders. The fact that cedars is involved is kind of not that different. What we are is acting as a distributor. They are going to be tradeolders and they can when they wish. How have the existing shareholders reacted . In terms of valuations, many people felt they were able to get their debt for much cheaper because Retail Investors arent so savvy. They dont demand much in terms of a return. How have the existing shareholders reacted . It is a good question. Essentially, the pricing was set last week. Institutions have essentially set the price. The price is pretty much what they were trading at at the close of play on friday. There is this conception that the crowd investors are dumb money. It is so far from the truth. There is from the companys perspective, much more power in having the price set by your customers than by a few discrete institutions. What this does is democratize the pricing element of this. You have a few institutions arguing the price. How much of a president is this . How many other companies could you be talking to . To be honest, this is an incredibly important day. This not only shows the coming of age of equity crowd funding, and we certainly came across a number of naysayers who thought crowd funding wasnt going to be around for long, i think this shows that it is here to stay. It is a major form of corporate financing. I am supremely confident. The reason we are so excited is that i think you are going to see some largescale ipos being distributed either partially or entirely through the platform at seedrs. Are you talking to any other companies about this at this stage . Are you having discussions with other firms that could follow a similar route . We are not in any direct discussions now. We were very proud that chapel down chose us. Like any first, you have got to make sure you get it right. I think we have done that. It is going very well. I imagine there will be a few phone calls after today. Give us a sense of scale. Last year 5 billion was raised by crowd funding. It could be doubling this year. Where do you see the market going . I think the market is an infinite market. I think the term equity crowd funding, which is kind of imposed on us you are not buying a product, you are buying a stake. This term, crowd funding is an umber let term for the kickstartrts of this world. I think i use the oculus example. It crowd funded on kickstarter and was sold to facebook. If you donated 300 and got the headset, if they had been raising on seedrs, and you were buying 300, you would have made a return of about 20,000. I would have preferred a lot more headsets. Ok, we will leave it there. Thank you very much indeed. Thomas davies and of course caroline hyde. Come, making a splash with urban farming. We are going to speak to this years winner of the climate cake awards. That is coming up after the break. Welcome back. In todays new energy, aquapo nics is making a splash. Linning us now for more on this story, tom webster. Good morning. You are the founders of grow up. What is grow up and why did it win . Grow up is an urban farming business. E use aquaponics we take the waste water from the fish farm, pump it to the hydroponic growing beds, clean the water for the fish and the whole system recirculate. Sounds very simple. A lot of fish. Scalable is this business . It is an idea that you post this infrastructure in cities. Space is pretty limited in cities. What is the potential to make this business grow . We think cities offer a very good potential for growing the business. Rooftops. Some spaces, we dont use oil in the ground. Things on can stack top of each other, we can grow in a much higher density to maximize on small spaces. So in five or 10 years time, the objective is that every building in the city of london will have some sort of farm associated with it . I guess if you look at the rooftops around here, there are an awful lot of them. How big could it get . We think the potential is huge. Acrosslations everywhere the world, not just in london, making use of those spaces, rooftops, land that is up for development, we could be seeing farms supplying communities, to help peoples understand where their food comes from. What does winning this award mean . Taking a business like this and growing it is very hard. How does that translate into getting it,business bigger, growing making it happen . Climate cake offers amazing exposure for start ups. The network they have is incredible. The events they put on and the recognition as a viral startup means a lot to us as a business. How hard is this whole process . I think starting any business from scratch, especially in an industry has been hard work. Agriculture does exist. It is not as if we dont all eat food and understand and are paying attention to where it comes from. That momentum does work in your favor. That is why london is such a great place for us to be. From is a real interest consumers, restaurants, and where food comes from. What is next . Next, we are building a commercial scale farm in london. Really scaling our growing, scaling our impact and starting to prove that this is a viable commercial model. Can i eat the fish as well . We planned to lobby a. They are an omnivorous fish. Tilapia, they are just not that popular in the u. K. That is one of our big challenges for next year, raising the profile of tilapia. Thank you very much indeed. Kate hoffman, tom webster. We are going to take a break. Coming up, a second hour of the pulse. We are talking about this geelectrolux transaction. What that means for both companies. We talked to the ceo of o2. He has got a plan to help parents. Plus we are talking about his business. All of that coming up. See you in a moment. Yes. The pound is under pressure after polls put independence in front for the first time this year. Electrolux cleaning up as well. The Swedish Company biting ges Home Appliance unit. Annair is set to announce 11 billion for boeing jets. We will talk to the companys ceo, michael oleary, later on today. Good morning to our viewers in europe. Good evening to those in asia
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