I am olivia sterns. Coming up on the program, the worlds greatest golfer gary player shares how to perfect your swing as the u. S. Open tees off today. Our top story. Bnps coo is stepping down. Pressuring theen worlds biggest bank to dismiss de courcell. This link to investigations over sentient violations . Bnp is letting him go of his own accord. It was his decision to step down. There has been a lot of indications in the media that u. S. Regulators were calling for his departure. We should be clear. He has not been accused of any wrongdoing. I want to ask you about your sense do you think bnp can afford this if they get cut off from the u. S. Dollar Payment System . It is a lot of money. I do not think it was their intent to force the bank out of business. Spiraling bigger and bigger. Every bank has to pay more than the last one so the regulators can show they are taking a very aggressive approach. Fair, it is not the reason that is up to 10 billion because of the sense that bnp was not cooperating with investigators. They did cooperate. Regulators said they did not. Theyre seeking a 10 billion fine. Obviously, someone has the power to exert that sort of fine. You know, it is what it is. The coo is stepping down. We will see more heads roll. Yeah, there will be some more heads rolling. The top banking regulator in says he wants other heads to roll. There is a lot of pressure on regulators these days to hold individuals responsible. They took a lot of criticism amid the financial crisis to sort of a loud banks to harmed. Putation was entities have reputations, but it does not prevent someone who was involved with someone and getting a job at a separate bank. It is harder when your name is been associated with wrongdoing at this level. Thanks. Moving onto our other top story but staying in the world of finance. George osborne has a message for currency riggers jailtime is on the time. They will announce plans to extend the laws. Lets bring in caroline hyde. Good morning. Watch out. That is George Osbornes message to traders. Watch out if you are foreign currency trader. Watch out if you are commodity trader or fixed income trader and you dare to. Mutilate the market. Youentioned how he outlined could face criminal charges. If you have many belated li libor, already if you manipulated that market, you face unlimited fines and up to 7 years in jail. 9 firms have been forced to pay 6 billion. There are worries that the foreign currency markets have been in the belated in old markets have been manipulated. George osborne one year at head of the general election is talking tough. He is talking to the electorate, not just the bankers. He is using words trying to relate to people at home saying markets set Interest Rates for peoples mortgages. Exchange rates for exports and our holidays in the Commodity Prices for the goods we buy. Relate to theo person at home. This is why that manipulation has hate you at ho has hit you. He wants to start penalizing with criminal lawsuits. It is interesting. It is a similar sentiment that is driving the story we were talking about with bnp, this e sense there has not been enough individual liability over all this commercial action in the market. Staying with the libor story, u. K. Seems to be carving their own path. Osborne says they will not follow the European Unions rules. Why are they going it alone . Interesting. Maybe that it is another election ploy. There is a referendum promise by the conservative government and United Kingdom trying to step away from the eu. That backlash after the European Union that european Member Parliament were many feeling antieu, playing to that crowd a little bit today as well, saying we will not take your rules on market manipulation from the eu. We are going to enforce our own. We wanted to be strong, perhaps even stronger. But what this is potentially is looking after our own industry. Remember, the Financial Markets make up a huge part of the u. K. Economy in terms of our service sector. They want to protect that. They do not want to they want to make sure it is not too harsh. We stepped away from other eu that on transaction taxes have been imposed in the likes of germany and france. We shied away from that. Once again we are shying away from eu policy, making our own regulation but notably, if you are a foreign bank working in the u. K. , you will be under own own auspices. Or jpmorgane bnp, working in the u. K. , it will be under u. K. Law whether you manipulate foreign currencies and the like. It will be the courts you face here. Caroline hyde. Unless you have been living under a rock, you know the world cup begins today. Brazil will play croatia in the opening match. Organizers have faced controversy over preparations for the tournament but investigators investors are viewing the country as an opportunity. Billion spent on the tournament, by far the most ever. Will it be worth at . Unless you have been living under a rock, you know the world cup starts today. You also know that according to the media, the country is a dump. That has been the whole focus of all of all the media attention, extremely negative here that is why the contrarians say this is a perfect opportunity. If you look away from the coverage, bmw is there and apple is there. Was writing them for years ago saying he would never open a store there, they built the store there. Also, financial investors. Good. Sayhs is its they say all the negativity is priced in. All the pessimism you hear from the brazilians that is a good thing because they will change things in their country. What you are worried about, pimco says, is if they were apathetic. I heard a similar thing from mark mobius earlier this week. Franklin templeton. He says he is very bullish on brazil. Give us then the basics. The fundamental far this one, brazilians are young, average age under 30. That means they have a huge Resource Base and they have workers as far as the ey can see. Two, it is a very democratic nation. They protest. Three, increasingly educated. The last government when it was in power really pushed this pro gram which effectively they took all the surplus money that was kicking around because of 8 Economic Growth and told poor families if you send your kids to school, we will give you a stipend. That reduce the poverty rate by 50 that was very effective. Finally, they are increasingly wealthy. It is always relative, but if you look at the middle class as brazil defines it, that is 109 Million People. If you look at their wealthiest group for their income brackets, we are talking about the brazilianaires are a dozen. People that are earning 30,000 a year. 29 Million People. Five years ago that was 13 million. Thats who bmw lands to send their beavers do their beemers to. High, but really these people have gotten the consumer bug. That is the argument is that a the from, away from negative coverage there is this big story. Story. G consumer we will have more on the world cup later on in the pulse. We will be joined by a senior for total analyst for ihs. Turning to check, eric schmidt is on a Charm Offensive in germany. He opened a new start up in berlin called the factory. Hans nichols is in berlin. Hans, has the german vice chancellor warned that google might need to be broken up. Argument is that there are a lot of Tech Companies in germany that cuts against his argument that google is a monopoly. Eric schmitz really needs these Tech Startups to succeed. He he said he welcomes competition. Being ericthis schmidt, he could not keep himself from criticism of politicians. Listen to the dig he got in as he was praising the german minister who introduced him. We never have politicians that get it right until now. Right . So its very, very important. I do not fully understand the german system provides that you to eventually become the president of europe where you could actually get the rest of the countrys fixed. Facesarly google headwinds in europe. They have this right be forgotten. This Court Opinion out of brussels. They have antitrust and some tax issues. Eric schmidt also talked about how slow the internet is in germany. Another dig. Saying there is such a thing called cyber. I have spoken to a lot of people who say that it feels nowadays that regulators are almost gunning after google the way they were gunning after microsoft. They do not want to see is shaken up because there is so much power. The big story as you mentioned is the right to be forgotten. Did schmidt say anything more on that . Public approach on this is that they are going to try to comply with it. Listen to how he had to put it. We are disappointed by this ruling. There are, located tradeoffs involved. Defense an example, in of their decision, they are trying to address issues that people have in the best way they can. So we decided we are going to work very hard to comply with the spirit of what they are doing. Olivia, you can take down the state. H companies in the google, facebook, or amazon they face regulatory challenges in europe. Both in brussels and increasingly in berlin. Many decisions berlin is going to make an regulation may be followed throughout europe. Google is here in europe. A new factory that is mostly on the tech sdide. Challenges ahead. We will see how successful schmidt was in appeasing his critics. Hans nichols there, our International Correspondent joining us from berlin. Ilianaires. Azxl we will meet a wealthy family behind four of the tournament stadiums. The brazil brand all over the world. I think i dont believe that the riots will affect the game or the tourists. That was the president of one azilsults br biggest Football Clubs. The on security and one of most dangerous countries in the world. Lets bring in the senior principal analyst ohn a latin America Country team at ihs. Good morning. Half a million tourists expected to show up in brazil for the world cup. How big is the Security Threat . 600,000 foreigners. We are talking about 3 Million People there. There are issues. The main concern is infrastructure. The bottlenecks and some cities. The airports are not ready. Some stadiums are half finished. Thats the main concern. Urban transportation is a concern and some cities. In sao paulo there is only a metro line that takes people to the newest stadium, but at the same time, there has been this threat of industrial strikes. I would say the main reason the infrastructure constraints and quite critically the threat of industrial action. Yor example, the just toda workers at the rio airport are going on strike. To increase salaries. For us, this is our main concern at the moment. We have been covering this for weeks saying it does not look like resell is ready, that that brazil is ready. Is it as bad as you thought it would be and is that going to disrupt the game if there are stadiums that are still today have finished . I think they will muddle thr ough. They have some decisions with help, for example, on game days. The metro in rio and sao p aulo, only people with game tickets are allowed into the metro and that will help. Three hours before in three hours after the game. Secondly, theyve decided to bring forward the school holidays. In brazil, one of the main reasons of traffic is people taking children to school. People in brazil are on holiday right now. That kind of thing will help. Some airports in sao paulo avenue terminallike a new terminal. Fantastic terminal but it is not ready. 16 airlines are supposed to be operating from there. Only six at the moment. Basically 90 of people will arrive to the old tournaments the old terminals. Brazil will shut down. I have been in brazil for world cup four years ago. People will not be allowed on the subway in chile have tame game tickets. Thatillion in the country has poor schooling. Contrary to the general perception, there is a problem in brazil. The clash the middle class has been the main beneficiary of growth. Taxess. High when you pay high taxes you expect good Service Provisions and they are not getting that. Brazil pay say that taxes similar to europe and get Public Services similar to africa. They are becoming more demanding and demanding Better Health and education. That is the main challenge. On the other hand, brazil really needed this infrastructure. Ispersonal view is brazil going to benefit in the midto longterm from and for structured. For the olympics it will be better. Brazil really needed better ports, better airports, and better highways and because of the world cup and the olympic games, that problem has been addressed. The only things they have not done them on time. But in the next five to 10 years, brazils capacity to handle passengers come a air traffic will double in capacity and it will be good for the country. The economy does appear to be stalling. It is growing at 2 . Something the u. K. Would love to be doing. A most any nation in europe. Razil. Low for b there was a lot of frustration that the president had to put in reforms. In terms of ease of doing business brazil ranks 116 out of 139. What are the prospects for Economic Growth and reform . That is the main challenge of the president. The formerula, president , was very lucky because he had the best of times. He had the commodity super cycle. He had the discovery of oil. He had fantastic. Prospects. When rosel came in, it was difficult times. Brazil has done Macro Economic stability quite well. But the second one which is structural reform, cutting taxes, making the labor market more flexible, that is what hes expected to address. But we have serious doubts about that because she comes from a leftwing government. She represents a leftwing party. With that we doubt she will go all the way to address that. Possibly will have a very economic anemic growth. Ihs is predicting 1. 5 growth for this year and 2. 4 for next year. In 2016 is when this investment makes a difference. Also when Oil Production will increase will make a difference. Still, it will be below the potential that brazil has. If they are not actually in fact if you think she is not it, they say do that she is losing popularity as a result of the world cup. Carlos, thank you very much for joining us. A senior risk analyst at ihs. Stay with the pulse. Back in two with more. Welcome back to the pulse. We are open rolling across the board. Open after it of the late start because your next had a technical issue aw week before its own ipo. Trading higher in the core of europe. Stoxx 600 trading flat ahead of u. S. Data. Initial jobless claims should improve as well. In europe we are looking for industrial production. Technology trading higher. Miners trading lower this morning. Still concerns about growth and for investors as well, geopolitical risk back on the agenda. Iraq, the key concern. Eda capturing the country secondbiggest city. Worries there. Lets have a look at what were watching in terms of stocks because a lot of it has been focused on france. There was a delayed opening the check out m a in this industry. Back in a moment. Welcome back. Live from Bloomberg European headquarters. Hese are the top headlines militants from a breakaway Al Qaeda Group are extending their control over parts of iraq. Capturing the birthplace of saddam hussein. A Warnings Issued about the Global Housing market. Holocene makers must take more steps to prevent another policymakersh must take more steps to prevent another property crash. The bank also faces a possible fine of up to 10 billion. Brazil has spent seven years and more than 11 billion getting ready for the world cup. Critics say it is a waste of money, but the president defends the spending sing preparations for the tournament will improve results infrastructure and help stimulate the economy. Will it ultimately be worth it . Joining us is the ceo of a spanish infrastructure company. Thank you very much. You are doing business for some companies in brazil getting ready for the world cup. Do you think it will be an economic benefit for the country . Thinghink it is a good for the country. It is good i believe it is a positive thing for brazil and for the companies. What is the Business Environment like down there . Brazil still seems to have this. Yzantine bureaucracy we need to they are doing better. Recently, they were in a different situation. This is coincidental with the emerging middle class. It is important for the country. Brazil recently was totally different. My belief it is this kind of thing that is energizing the country and changing slowly the consistency, the way to do things in brazil. On and hewas just said their forecast is for the economy to grow 1. 5 this year. Are you not concerned that things are slowing down . The other from thing that is very important is to consider the midterm, not only the shortterm. One of the problems we have now is with a shortterm benefits. Next 10to look over the years. Of the greatquence advance in the last years. Future oftive for the a great country. 73 of the credit cards are in brazil. 38 of the internet is an brazil. Future. Be the you are saying there is an emerging middle class and that is good news, but this is something we have heard before. The story line that brazil is on the brink of booming is something people have been saying for 15 years. Why is it still such a poor country. Brazil is the constant within ntinentdent a confiden within a continent. It is important to put it on the table. When he to shortterm analysis the evolution is going to be positive. It is not so far away. It is no longer than 10 years. 10 years is nothing for transforming a continent. Brazil is much more different than 10 years ago. Creatings the cup been opportunities for you specifically . One year ago, we were off brazil. We work in the northeast and southeast. Electricity, and telecommunications. The middle class is going to use it for the next 100 years. We are strong believers that we can make it. Positive that is the reason we are growing and investing mark in brazil investing more in brazil. You call it the land of opportunities. Is there a sense that latin america is what has been driving the recovery in spain . I think so. There is a natural link between spain and latin america. Latin america is investing in spain now, too. Mexico is investing heavily in spain. There are two ways to enlarge in our relationship. It is of great friendship. It is not just one white anymore. How it is not just one way anymore. How is the Business Environment . Spain is going to recover quicker. Spain was the end of the world one year ago. I believe it is that spain is a strong country with a strong government with a strong idea to grow and we have overcome the most important problems we had. The energy of the spanish people , the preparation, we are going to do and we will do better. Now we are going out of the crisis. How about the spanish consumer . Strong is the spanish consumer right now . The consumer now is not so good. You need to understand that there is a psychological factor, too. It weighs very much in the mind. It is recovering for the first time. The trend of the people not working has changed. For the first time in this quarter, the jobs are growing. I believe something has changed the mentality of the spanish people. They are not so pessimistic. The faith to overcome the crisis. Totally an optimist. I think spain is going to recover consistently in the next three years. Who is going to win the cup . I have a challenge to be i am going to be very clear. Spain. Ok . Dark horse perhaps. Youll have to come back soon. Workers at rio de janeiros airport started a strike admin night local time at midnight local time over better pay. 70 of Airline Workers will remain on the job as will 80 of baggage chandlers. The workers won a bonus for working during the world cup tournament. The party was ruined by this man when brazil last hosted the world cup. He might not get a chance to watch at this time. The 87yearold scored the winning goal in the final game of the 1950 world cup. He is the last surviving member of the uruguay squad. German fans at a Berlin Football Club have created the biggest world cup living room i bring their own sofas to the stadium. Most of the registered sofas are already positioned so that football fans can watch the tournament as if they were in the comfort of their own home. 12,000 fans are expected to watch the opening game today. Lets bring you some live pictures from sao paulo. This is the first match of the world cup, brazil versus croatia, will be ticking off today. The biggest sporting event on the planet. Lets bring our focus back to the world cup. The tournament kicks off today despite all of the excitement, brazil has been faced with lots of challenges. In 2007, when brazil was awarded the 2014 world cup, the country was enjoying a period of Economic Growth. But getting ready for the finals has not been easy. The task of building and remodeling 12 stadiums was not as daunting as it has now become. Only three of the 12 were completed on time. With total cost spiraling upwards of 11 billion, resilient public protested brazilian public protested demanding hospitals and schools over stadiums. Whether the stadiums are ready or not, their Major Concerns for the safety of the fans. 2013, brazil was the nation with the most deaths caused by football violence in every year, there are 20 times more murders in brazil than there are in the u. K. And five times more than there are in the u. S. Deployed byll be the brazilian police. Oddson to lift the trophy. Goldman sachs even suggest buying brazilian stocks. Lets stay on the world cup with a look at who may be caching in caching and. Cashing in. It has received to build some of the arenas. Our billionaires editor joins us for a closer look at the socalled brazillionaires. Voth of them have very close ties to the government both of them have very close ties to the government historically. They are the government promised that they would not have to spend any taxpayer money on the stadiums. Subsidized loans they spent about 3 billion. This is why the people are so upset. When you do healthcare, education, and Affordable Housing. The slogan i keep seeing, we want fifa quality schools. How did they make their money . And construction. And construction. The major funders of the parties, the Workers Party that is sponsoring the current president. These guys transitioned very well. Perez is 30 years junk or and was a protege 30 years younger and was a protege. They Work Together by getting government contracts. They have used those government ties to build their businesses, which is why the people are so upset. The government is creating the personal fortunes of these families and the people are suffering. What do people want them to do . Tothey want the government pretty much have more of an arms length relationship with these billionaires so that the money the taxpayers pay does not go to enrich these millionaires. Great schools and Affordable Housing and health care. They are taken it out theyre taking it out on the billionaires. You are the billionaires editor. Brthere a sense of azillionaires of making their money and certain sectors . Government that helps enrich these people. Russia is a very different and smaller story. A very unique situation. Brazil, it is the government ties that are enraging the people. They were not taking state assets. They were using their government ties to get beneficial deals. Subsidized state loans, that sort of thing. Staggering fall from grace. He has lost his fortune. He lost it in a very dramatic way. I do not think we need to worry about him starving. Thank you. Lets bring you some more pictures live from sao paulo. Lets take another look at the corinthian stadium. Brazil will be playing croatia, kicking off the biggest sporting event on the planet. Welcome back. Kicks off world cup in brazil. If your taste leans more towards golf, you will be tuned into the opening round of the u. S. Open. Tiger woods is missing his second major because of injury. We spoke with gary player for an exclusive interview. He credits a healthy diet and exercise for his professional longevity. I would not change anything. I was a hard worker and i alwaysd things i was very optimistic, but when you think of what i achieved, it it is far beyond what i expected. It lead you to nine majors and lead you to nine senior majors. He said to me before we started chatting that when the grand slam, it is harder winning it in the senior tour. People are amazed when i say that. My grand slam on the senior was far better because you have to do it after 50. Most athletes are finished when they are 30. It is not like tennis were you when i play against each other, same conditions. We are playing against 100, different conditions. I had to do this after the age of 50 and im the only one to try. It must be tough. Go back a few weeks ago. Amanda 50 years of age nearly one a man of 50 years of age nearly won the masters. He goes along and went the spanish open and went to his first senior tournament. We come to the conclusion, you could be 20 years old or 80 years young and im almost 80. I cannot believe you are 80. Just under. I exercise profusely. Any aches and pains . None whatsoever. I do not put the poison that exists around us in my body. Amazing. 1300 crunches at nearly 80 years old. Todays newn to energy. We will look at efficiency. Lloyd blankfein sat down with charlie rose to discuss Energy Independence in north america. When you think of the u. S. Being as close as it is to Energy Efficiency and not having to be in that importer of energy, you think of the history of the last 40 years. The way history unfolded, could you imagine how Different Things an imagine how different it will be over the next generations if we can make this right. In terms of the economy and the geopolitics and americas position in the world. The benefits of the blessing do not come automatically. What do we have to do . We have to reconcile the schism between the people who are only thinking in terms of the environment and only thinking of supporting the economy and get some accommodation between the two. Oth of them are right accommodation has to be reached so we can go forward and have rules that are durable and reliable so people can make foot types of longterm investment that allows us to receive the benefit of the energy situation. Blankfeins lloyd speaking to charlie rose. For those listening on bloomberg radio, the first word is coming up next. For our viewers, a second hour of the pulse. Stay tuned. Calling it quits. One of bnp paribas top executives will step down, the u. S. Seeks 10 million from the bank for sanctions violations. George osborne cracks down. Currencyraders who fix rates will face jail. The world cup kicks off in brazil, is the nation ready . Good morning to our viewers in europe, good evening to those in asia, and a very warm welcome to those just waking up in the u. S. Sterns, this is the pulse, live from london. He is one of the worlds greatest golfers, terry player shows how to perfect your swing as the u. S. Open tees off. Cooof the mp party abouts s cooe of bnp paribas stepping down. We should point out that he has not been accused of any downdoing, is his stepping related to this . The bank is allowing him to save face but there has been media reports that u. S. Regulators want him out. Desire to hold individuals responsible and show aggressivere having tactics hitting the bank in the executive suite. Will this be enough for ben been pushingas for some scouts, or do you think we will see heads roll . They want to see names associated with allegations of violating sanctions in iransudan go out. People involved in these transactions obviously do not have the same cachet of the individual resigning today. There is going to be desire for other employees to go. Concern seems to be focused not so much on 10 billion. 10 billion is not what used to be, the bigger threat is whether bnp will get cut off from the u. S. Dollar Payment System. Any sense of whether that is likely or still in the cars . Lawsky wants that. He has talked about that as being every. Once customers leave, will they come back if they get comfortable with a competitor and start using a different bank. There is always a fight to windows customers back. Lucrative not a service, but essential. Thank you so much. Moving onto one of our top stories, in the world of finance. George osborne has a message for currency rigorous, jail time on the table. Announcing plans to extend laws that criminalize libor rigg ing. Lets bring in caroline hyde. Theeorge osborne takes to stage adjusting the Banking Industry. A warning if you are a trader in foreign currency, commodities, or fixed income. If you manipulate the market, as we have seen with libor, the london interbank offered rate, you will face criminal charges. Not that much of a surprise that this is being taken seriously. Foreigncurrency manipulation already, we have had Martin Wheatley of the Financial Conduct Authority saying this looks as bad as libor. Eondon interbank offered rat underpins contracts of 300 trillion student loans, mortgages and the like. The manipulation of that has seen 6 billion of fines handed out in regulation has been passed that you can see seven years in jail if human appeal of the market. A show to the bankers and the electorate head of the general election next year. George osborne wanting to look toss on manipulation in the market. And speaking to the populace here. Some extracts from what he will say in his speech today, he is marketsings like the set the Interest Rates for peoples mortgages. Making it to the person at home see that it affects you because it affects your mortgage. It affects our exports and our holidays. In the Commodity Prices for the goods we buy. Hes trying to set your groceries are affected as well. Your holiday cost. Hes trying to speak to the electorate, not just the Banking Industry. Trying to be hardhitting ahead of the election. Is interesting that George Osborne is saying that the u. K. Is not going to go along with the eus market of these roles market abuse rules. Why are they carving their own path . This speaks to the electorate as well, there is a referendum being promised by the conservative government at the moment. Out of the eun or in general . There is also the transaction tax, we shot away from that. U. K. Wanting to show they want to impose their own regulations. The financial industry is crucial to the u. K. Economy. More important, are giggly, then to germany or france. We want to ensure we do not crimp growth but there is regulation where it is needed. George osborne going on the attack. He will be joined by the bank of England Governor Mark carney letter should i. The ble and the treasury working to develop regulation. Looking for to your regulation, caroline hyde. The world cup begins today, host nation brazil plays croatia and opening match. You are looking at live pictures from the studio in sao paulo, where the game will take place. Still the middle of the night. Organizers have faced has received over preparations for the tournament but investors are viewing the country as an opportunity. Ryan chilcote joins us with more. Billion,uestion, 11 will it be worth it . Even that picture tells the story. It looks grocery. Dreary. Oks 3 billion people are going to watch the world cup. Half the planet. A billion of them have watched negative coverage of brazils preparation. They have seen the slums. Peopleup to the cup, have come away with that the country is a dump. The contrarian says this is an opportunity. Is very negative on brazil and sent a team in january saying it is not as bad as we thought, negativity is market,n to the stock which is down by a third. Bmw is spending 200 Million Building a plant there. Apple just opened a store a few months ago and they are selling their iphones like hot cakes. People are going in with contrarian plays because they think the fundamentals are right. Breakdown the fundamentals. Pimco says brazilians are young. Just under 31 years old on average, they have a resourcebase. An increasingly democratic country. If you listen to the news coverage, they are pessimistic. Old be worse is if they were apathetic. They will make change for the better in brazil. They are educated, increasingly. Milia project was a move to take surplus money in the system when gdp was at 7 or and give poor families a stipend to send kids to school, reducing the poverty rate by 50 . Also, they are increasingly wealthy. The upper income bracket now contains 29 Million People. About five years ago it contained 13 Million People. That is who bmw wants to sell to and who is willing to pay double the price you would pay here in london for an iphone. They have very high taxes. They have got the consumer bug, pimco argues, they are not going to walk away. To mark froming franklin templeton, he said a similar thing. I asked about the issue of people demonstrating on the streets and the economy. He said that is good news longterm because that will help the economy. There is always a warning, in ans case, the world bank has ease of doing business survey. This year, brazil comes in 116th place out of 189 countries. The Football Club will do much better. If you look over the last seven years, they have improved three places. It either is opportunity there. Say, doingrarians business can be lousy. Who will win . Everyone thinks brazil, what it means for the stock market. Disclosure,est of we picked out of a hat and i ended up with ivory coast. Im going for what this means for the stock market. Goldman sachs says the victors stock market rises by 3. 5 after their victory in the world cup. That would mean brazils stock market would go up by 3. 5 by the end of the month. Hope they do not lose and cause further slowdown. Ubs said a loss would be best, that many people would bring in more market it would put in a more center right thank you for joining us with the latest on the world cup. With all the International Attention surrounding the world cup, it can be easy to ignore the facts ignore the effect on the local population. Our tournament will impact daily life. Stay tuned to the pulse. Welcome back to the pulse, time for a check on the currency markets. Lets get over to caroline hyde. Focusing on a fruit the kiwi. Higherland trading 1. 4 against the dollar. The reasoning is because it raised its Interest Rate, up by. 25 cents, 3. 25 . Zealand isnew struggling to contain inflation. They want to enter the future views of where prices will go. Biggest gain for this currency in four months, up 1. 4 . The Federal Reserve bank of new zealand governor, graham wheeler, is saying i am not done yet. I can raise rates further. Up 1. 4 at the moment. On the back of Interest Rate hikes in news england it new zealand. The 2014 worldt cup kicks off today as brazil gets thrust into the international spotlight, how are brazilians feeling . Lets ask a journalist and the author of brazil country of the present. Looks like the drumbeat has been negative ahead of the world cup. Is that justified, as brazil ready . One of the main things people are paying attention to, they are finding out about problems that brazilians already know about. Infrastructure problems, problems with traffic in the city, sao paulo especially. The world is starting to Pay Attention to that. Someey start to make criticism about that. That lowers expectations and makes people be prepared to know what brazil really is and what are the real problems in brazil right now. That might not be a problem for brazil because that is the reality of the country. It is good for people to know what is really going on. I have seen polls that say are skepticalans that the world cup is actually going to yield benefits for the country. Some people are skeptical. People were happy before. When the world cup was awarded to brazil in two thousand seven, people expected to show brazil as the new country it was trying to build. A country where infrastructure was really well developed and the economy was really well, the country everybody started to Pay Attention to. Now what is showing is a lot of the problems that did not get solved because things do not change overnight. And a lot of the problems are still there. People start to worry about that. But brazilians are really obsessed with the International Image of the country, what you will think about brazilians is something they talk about a lot. You have 3 Million People going to brazil and experiencing the problems brazilians deal with everyday, they worry that the rest of the world is going to think bad about the country. That is something that makes people feel skeptical. I think part of the International Image of brazil is also the idea that there is a fabulous wealth next to dire poverty in the favelas. Where have you seen evidence that the emerging middle class g . Growing yo brazil started really bad. Things have started to evolve in the last decade. Inequality is decreasing. The situation with inequality is still bad. You have people becoming consumers who were not before. Improving,ings are you get to see a lot of money next to a lot of poverty. That is something that is a problem for the image of brazil and that is not going to change overnight, either. The idea that brazil is on the brink of booming is not new, we have been hearing this for 15 years. Why hasnt it happened . People create expectations. Some studies show that this has been around for more than 50 years. We can find International Media reports in the 1960s saying brazil was about to boom. Is that things did not evolve as fast as people expected. You get the attention on brazil and people start to think everything is too good and then too bad. In 2008 people were saying everything was great for brazil and the expectations were too high. Now they are lower and things might, people will stop criticizing and things might be seen well again. The author of brazil country of the present. Back with more on the pulse in two minutes. Stay with us. Welcome back to the pulse, we look at Energy Sufficiency. Goldman sachs Lloyd Blankfein sat down with charlie rose to discuss Energy Independence. About the u. S. Nk being as close as it is to Energy Sufficiency and not having to be a net porter of energy. Think of the history of the last 40 years since the Arab Oil Embargo when it was driven home how dependent we are on foreign oil. And all the ways history unfolded over the last 40 years. Imagine how Different Things would have been for the last 40 years. Imagine how different it will be over the next generations if we can get this right and make America Energy sufficient in terms of the economy and in terms of the geopolitics. It is quite a blessing. But the benefits of the blessing do not come automatically, you have to do things to take advantage of it. What do we have to do . We have to reconcile the schism between the people who are only thinking in terms of the environment and the people who are only thinking in terms of supporting the economy and get some sort of accommodation. Both of whom are right. It is not a question of wrong and right, both are right but accommodation has to be reached so we can go forward and have rules that are durable and reliable so people can make the kind of longterm investments that allow us to receive the benefits of the energy situation. Those benefits are growth and jobs. Was Goldman Sachs ceo Lloyd Blankfein with turley rose. Lets talk technology. With revenue rising by 100 million a year, iron source could the headed for the big time. The israeli Platform Helps Companies distribute and Sell Software online. Lets head out to tel aviv with Elliott Gotkine. Good morning. I am joined by the founder and ceo of iron source. Great to have you. Tells about what you do in terms of helping companies distribute and monetize software. Howdy do that . If you think about software developers, their main is to get to users and effectively deliver their product to users. If they want to become a business at some point they need to find a Business Model to transform a kadant into a business. From a product into a business. Helping developers concentrate on developing great products and we help them with the rest. Distribution, delivery, and monetization. 1 3 of attempts to Download Software do not work. Numbers are amazing. About 30 or 40 of Software Installations will fail, depending on different geographies for various reasons. Security, operating system, and configuration. Thosempanies developing products would not know about it because they do not have the analytic tools and the Delivery Platform to know what is causing the problem and be able to solve it. When i get told to update my flash player or something, is that iron source telling me that . Theres a good chance. We have done over 2. 5 billion installations and we do 5 million new installations every day. Revenue is rising 100 billion revenue is rising 100 million every year and your profitable. Everyone expects an initial Public Offering full stop what comes next . More than 100 million a year in revenue. Rising 100 million. Andor a company of our size status, we look into different options. Ipo and other options are on the table. What kind of timescale will we be looking at . If that is going to happen, it will happen within the next year or two. You just opened in china, how big an opportunity . China is an amazing opportunity. We have offices in china, the u. S. The china situation is interesting. You have internet giants their see themselves as international players. They partner with iron source to help them penetrate additional markets. We help them distribute products worldwide. We help them get Global Distribution. Of lucksh you the best with your growth plans. Ceo and founder of iron source. Back to you in london. Thank you, Elliott Gotkine live in tel aviv. Coming up, a fair fight. A program. L launches disrupting the taxi industry. Google helps open a new home for start ups in berlin. The complicated relationship with europe. Coming up on the pulse. Follow me on twitter. Backod morning i welcome to the pulse, live from bloombergs European Headquarters in london. These are the bloombergs top headline. Militants from a prickly Al Qaeda Group extending their control over a rock, advancing baghdad. The u. S. Is considering an iraqi request for airstrikes. One of bnp paribas coos stepping down. The u. S. Had been pressuring the bank to dismiss georges chodron de courcel. The bank has been investigated over sanctions violations and faces a fine of up to 10 billion. George osborne getting tough on people who abuse markets. Set to criminalize the manipulation of currency, commodity, and fixed income benchmarks. He speaks later alongside mark carney. At how thea look european markets are trading. Lets get over to caroline hyde. A mixed trading picture. Spain trading higher, france trading higher, germany higher. A little bit muted ahead of key u. S. Data. Retail sales set to improve. Expecting u. S. Jobless claims to improve. Yesterday we fell out the sixyear highs in europe. Now, pausing for breath. Lets get over to the Industry Groups. Technologys standout performer. Ers trading lower, selling the likes of anglo american. Keep an eye on the Industry Groups. Just staying in the green. One Industry Group that is franceting with m a is and telecoms, the fight is on for whether or not orange might we telecom y buig telecom. All the stocks are rising at the ent, particularly elliott all the stocks are rising at the moment, particularly illiad and bouygues. Mark carneyne and will take to the stage, their annual address to the Banking Industry at mansion house. How will the answer to the fact that the u. K. Economy is turning around jacob driving the pound p i. 25 , one dollar 68 driving the pound up by. 25 . 1. 6829. Pressure on mark carney. Implemented a yesterday, tandout figures 6. 6 unemployment rate. The lowest we have seen in more than five years. Good seeing a bo view on the bridge pound and the new Zealand Dollar trading up 1. 4 , the strongest and more than four months. Why . Interest rate hikes. Time, it isutes surveillance with tom keene. Good morning. Going on. We go to peter cook in washington to talk about eric huge news. Across america, see the House Majority leader loses in a primary. Day two follow on about who will replace eric cantor. Iraq is front and center. I saw Prime Minister camerons comments overnight. What to do to assist baghdad with the militants. Only 60 miles him a 70 miles outside active. Oil higher. Neil will join us from renaissance macro. Talking that retail sales and the greater u. S. Economy as the fed has a meeting june 18. Jeffrey will join us from blackrock. Talking about emergency market. He has a different view. Robert wolf will join us, a supporter of president obama. About thelk to him politics in washington and the future for the republican party. So much, tom. Coming up 25 minutes from now. Only startuphe that has angry cabdrivers on its tail. Hailo is quickly expanding its footprint. The company Just Announced plans to move into the market for bmws. E hire mercedes and is founder and ceo. I was on Trafalgar Square for 13 hours yesterday. Uber said they would start hailong black cabs, what has been doing. You are going to offer executive car services. How is the shaking up the Competitive Landscape . Hailos approach, we have always entered any market, we are a Global Business in asia, europe, and the u. S. We have always come at the market from the licensed taxi side. We are a u. K. Business, it was founded here. We have been working with our lightness we have been working with licensed cap drivers from the beginning. Customers want more choice, particularly because we are expanding our service and seeing that customers are corporate. Premium offering we are talking about, executive car felt we something we needed to do to continue to draw customers to our base and keep them with us so they have some choice. It does not change our basic proposition. In contrast to uber, which is very much about the private hire vehicles. Doing, ithat might be would consider that more of a cynical move to act as a hoax to be able to upsell their car tovice to act as a hook be able to upsell their car service. A few months ago when you got into private hire, your offices were vandalized. There has been a blowback. I was speaking to a cabdriver who said 75 of drivers are getting rid of their hailo apps. They are furious because you are moving away from them. Are you seeing that kind of drain . No. There is rumor going around, it was late that we had applied for a private hire application and license. Which we still do not have. Announceture we will the launch of our service. It was always going to be limited to an executive car service to augment the core part of our business, which is the licensed cap fleet. By sheer numbers, it is the Better Service because we have liquidity to cover the demand. It was never our vision that never going to be a solution by itself. In london, unlike many other markets in the world, the fleet is high quality. It is the best in the world. You have special lanes. Takes offrush hour it the time. There are so many reasons why you would never want to alienate that group. It has been unfortunate to some of the rumors. Square,ing on trafalgar i saw several taxis go by that had a hailo sign with a big x through it. Them have the expectation that we were going to do what uber is doing. Saying you can pick either one. That was not our intention and now we are doing. They are offering luxury executive cars, you will be directly competing with uber. In that aspect, but that is not new. We compete around the world with them. Have you been losing business to uber . No. There has been a lot more going on in disruption on the private hire side of the market. We are both converging on what trade, theysed taxi are using their app to arbitrage. To take work on the street hail side of the market, not the corporate side. We are going to come up against them. If you consider what was going on yesterday, the frustration of the drivers, they might try to articulate it but the real issue is that yes, it could contribute to anything. Hopefully we can get clarity on what basis people will be allowed to compete. The truth is, right now, it is not a level lighting field. Uber is doing things, whether you believe it is illegal or not, there will be a High Court Ruling as to whether it is. The fact of the matter is it is not the same roles that the black cabs have to play by. The city and the mayor have to decide what is in the public interest. In other words, the costs and infrastructure that a licensed cab is part of the public infrastructure. If you do not have if you do not protect the rules they become uncompetitive. Examples like handicap access. To take aon cat has wheelchair. Background checks as well. Safety checks. People argue that with new technology. But the fact remains, how many can take a wheelchair . It is a different issue across europe, there were protests yesterday. The united front, frustration all around. In common seems to be the fact that local taxi and limousine industries are heavily regulated. Do you think tfl needs to deregulate . What we care about is a level playing field. Innovation company, we believe in disruption. Our view of how you disrupt is not to destroy, these technologies can be applied to existing players in the market. As we have demonstrated. Whether they deregulate, i have no issue, as long as they treat everybody fairly. The regulation means why do sticke black cabs have to to their meter . Uber does not. One has to stay to a fixed pricing mechanism and they can price based on supply and demand, there is a difference. Required cost, do you the knowledge to have a license to pick people up, that is a threeyear to fouryear commitment. Cabs are expensive because they have to be able to take wheelchairs. That is not a level playing field. If you want to deregulate, let everybody do what they wish. If you feel there is a public interest, the city does have to make a decision of how to protect that or allow that to function alongside a free, competitive market. Competition heating up, it will be interesting to see how it shakes out. Thank you very much, ron zeghibe cofounder and chairman of hailo. Stay with the pulse, looking at a startup factory. Berlins tech hub has opened. Will this improve their reputation in europe . That is coming up on the pulse. Stay tuned. Welcome back to the pulse, Googles Eric Schmidt on hr offensive in germany. He met with one of the harshest government critics and open a startup hub in berlin. Hans nichols is in ireland. The vice chancellor has warned google might want to be broken up. What is the response . Up thisschmidt opened factory, this is a big tech old bordere on the between east and west germany. His argument is that he needs startups in germany to cut away at the anticompetitive charge that google is facing. He could not help himself, he did have some positive words for the politician. Overall, he was critical of the political scene in europe. Have a listen. We never have politicians that get it right until now. It is very important. I do not understand the german system, but i expect you to become the president of europe where you can get the rest of the countrys fixed. Google is facing problems, tax issues, the European Court of justice and them they have questions on antitrust. On the brussels decision, some cooperate. Nt to quite consolatory. There are complicated tradeoffs. In defense of their decision, they are trying to address issues that people have in the best way they can. We decided that were going to work very hard to comply with the spirit of what they are doing. U. S. Ogle and other companies, amazon, they face difficult regulatory challenges in brussels and berlin. Can start they feeding it out with startups trying to become part of the ecosystem, that is what google is trying to do. Thank you so much, hans nichols joining us from berlin. For more insight on google in europe, lets bring in hussein, a partner at hawks inventors. Describing the climate for google opening this factory. Why do you think germany is not the tech hub everyone is hoping . German entrepreneurs have a great mental economy that they have not really dont that much in the way of technology businesses. The most successful german entrepreneurs are the guys who copycat businesses. They basically photocopy a Business Plan and execute it across the world. The bigger problem germany has, it does not have much in the way of venturecapital, it is about 1 5 the size venturecapital per gdp compared to the u. S. Why . A more riskaverse culture. It is good that google is getting involved. The Silicon Valley way of doing business is not predominate in germany. A lot of guests have said it feels like the eu regulators are gunning i googled the way they were gunning at microsoft a decade ago and they want to see google broken up. If it is an antitrust issue, we should have that conversation. Google has market power everybody uses. I dont think google is doing harm to the consumer, i think they provide good services. The eu regulators are clumsy and the way they implement laws. The directive was a good thing, to protect privacy from coming into these companies. Ee you a progressive force but the implementation is poor. Now we get popups on every site that says are you ok with your implied consent for the cookie data. The right to be forgotten is good in concept. It is harder to implement. Google is overwhelmed processing to childdophiles molesters to malpractice doctors trying to get themselves out of the google index. Has had a shaky response. They want this information to the public. Have the people to right to be forgotten. The implementation is not very good. I have seen some stories saying that 41,000 requests in the first few days alone. Very close to that number. Is a good thing . It is good if you are trying to remove yourself from the index. Some folks think they should not be removed. Is a good for consumers . It is nuance. None of these are easy to solve. Should you be able to be forgotten . Yes. What happens if you done something bad, you probably should not. The litmus test is very vague. There seems to me, being from new york and here in london, theres more mistrust of google culturally in europe than the u. S. Itsoogle has not opened up arms to the economy here. The tax issue has been a bad thing. That is a part of it. These Companies Optimize for lsing sure that there pn look healthy. Starbucks has had the same response. It is the optimization around tax. I was covering the uber protest yesterday, people are up in arms. Acres across sectors. A big deal in technology. You mentioned you think germans are riskaverse and perhaps that is why they are not thriving. Across europe there is very little money going into this. Of the funds, 40 of last year was a state backed funds. Why arent we seeing more individuals in venturecapital . To build aard company in europe 10 years ago. You did not have a Global Distribution platform. Now we have Great Companies coming out of europe spotify, etc. Now there is a lack of resource because the venture money lags. People who give money to firms look to the rear rather looking forward. People writing these checks are union like the European Investment bank. Are things Getting Better . On thee is a capital gap ground, i do not think you could pull off uber and raise that money locally. Thank you for joining us. Stay with the pulse, back in two. Pulse. Me back to the gary player is one of the greatest golfers of all time. With the u. S. Open team austin daye, his top tips for improving your swing. I have been a professional golfer for 60 years and have traveled more than any human being. I have hit more balls. Golf is putting. Do not tell me how far you are hitting the ball, practice from 100 yards in. Long drives dont mean that much. Learn toare putting, keep your head still. Hit the put, do not move and do not be a peeping tom and move your head. The minute you move your head, the putter goes wide. Ch rory macklemores watch mcelroys swing. Good balance. Third, speed. Speedn my body to have at my age. A young person has to have speed. Every shot requires speed. The first 20 years are the toughest, good luck. Check onget a quick the currency markets with caroline hyde. At the qa versus the dollar. The new Zealand Dollar, rate rise up. 25 . Up goes the currency, up 1. 4 , the biggest jump in four months. It for the pulse, keep it right here, surveillance is coming up next. Break, liveo the pictures from sao paulo. This is the corinthian stadium, where the first match will take place. Brazil will be playing croatia. The biggest sporting event on the planet. Have a great day. This is bloomberg surveillance. He has not been accused of any wrongdoing. Nevertheless, the head of compliance at bnp is being shown the door. And a 70 miles outside baghdad oil prices higher. Amber zoellick roy took, they play a soccer game at 4 00 p. M. This afternoon. Over 3 billion Television Viewers have been invited. Were live from our world cup headquarters in new york. It is thursday, june 12. Keene, join me scarlet johnson and adam johnson. Argentina . Yes actually, im going to go with brazil. Brazil v. Croatia. I dont not know if the stadium is done. They will play regardless. I wore this soup for argentina. That is a sharp looking suit, by the way. Alpaca . You are a highend guy. Are there alpacas in