Transcripts For BLOOMBERG The Pulse 20140620

Coming up, is time running out for nouri almaliki, the iraqi Prime Minister . We will ask the foreign minister if the country needs a new Prime Minister. First, lets get straight to our top company story. Poised to make his case again to french leaders today. Tomis making the case for als Energy Assets. Things going on surrounding this deal. It is becoming increasingly political. Will france be set aside . Bothine, ge and siemens improving their offers and both meeting the president today. Thats right. A pretty exciting day today. The french president will meet with the siemens ceo at 2 45 french time. And he will also meet with the General Electric ceo. Sides improving their offers. Ge last night said instead of just taking over alstoms Energy Assets, they will also create a joint venture with alstom in renewables as well as relliance on nuclear technology. Ge is selling israel for naming business selling its rail signaling business to alstom. Siemens decided to improve their cash component of their bid. French statethe alstom want to see a higher cash offer and they wanted a less complex offer. Siemens has reduced the number of joint ventures they are planning to create. We are waiting here for the reaction from the french president. Guy . Caroline, everybody is talking about the fact these offers are improved, but the shareholders, nevertheless you get the feeling as well this is not just about the shareholder base, but it is about the politicians and the people that work for alstom. Talk to me about reaction from unions. Thats right. It is not only about the shareholders. The unions is pretty important. I met met with some of the Union Leaders last night. The reaction were mixed. Some saying they were reassured by the new guarantees from geon the jobs front. Some saying that the new bid means the dismantling of alstom. The Energy Assets would be split in different departments. So we are worried just like unions were at the beginning, because we are witnessing the dismantling of alstom. So that was the reaction from the unions. We will be waiting for more reaction from french officials today. We already got some reactions, including the Prime Minister saying that in the end, it is up to the company to decide. Guy . Thank you very much, indeed. On what is happening today surrounding alstom. Back with her later. We will maintain the eminem theme. The m a theme. After confirmation of several takeover bids from abbvie, all of which have been rejected. The company is best known for its add drugs. It is a perennial story when it comes to m a. Here to discuss all of this is matt campbell. Matt, a lot of people have suspected this company was after shire. It has come out that is the case. But shire is not satisfied with what looks like a decent offer. Thats right. We have seen in the last few minutes, shire putting out a detailed defense statement going into considerable granular details on its performance targets, that it feels there were execution risks. This is a document that has been in the fridge for a while waiting for just such an occasion. Nopw the question is, is this over as these statements have detailed . That last offer was may 30. We are now in a situation where shires shareholders are going to be saying, we think this offer might be decent or maybe they will say otherwise. Abbvie have to be betting that some shareholders will be asking management to come to the table. In terms of the logistics, what are the dates we have . They have got to make a firm offer by when . If they dont, we are back in the fridge for another six months. We are in a rerun of the pfizerastrazeneca situation. 28 days to make a firm offer. That takes us to mid july. Unless there is an Extension Granted by shire, then we are off for six months. There are exceptions to that. But six months is the guideline. We will have a very intense period of pressure over the next few weeks. What will the british governments view of this be . Shire based in dublin. Very strong in attention deficit drugs. Is there a sense we will get a similar story emanating from whitehall to the one we saw surrounding astrazeneca . Shire is not as big name. Astrazeneca is the kind of people a lot of a the kind of company a lot of people have thought of. Perspective, this deal would propose domicile in the new company in the u. K. It could be a net positive to the british tha exchequer. There is an interesting study on how much tax the company placed in westminster . Not very much. A slightly more political view rather than an economic view. We will continue to track the story as it continues to move throughout the morning. Shares up. It is a big day for ipos tsb shares have been searching. Euronext give him the lowest price. Manus, two very different stories this morning. Its regulation that forced both of these deals. Interesting to see euronext dipping. It is a big shift. A lot of money going on exchange. A lot of traits coming out of the overthecounter market. Euronext dipping slightly. Different story on tsb. Price to go. Stock, 30 held by the retail investor. Done globally in terms of pricing on their first day since they launched . Prices up 12 . 4 . In the uk, up that banner headline that the u. K. Is the home of ipo. Thats where all of the money is being made. Performance on u. K. Ipos relative to the rest of the world is a laggard. B m did well but the likes of of others are underperforming. In terms of the rest of the year, what does the pipeline look like Morgan Stanley says they have 110 ipos ready to go. That feel that that hunger, need to get to market seems to have dissipated. For them it will be about tech, health, and energy in terms of the number of ipos. When it comes to discerning most guy has been the beneficial, a lot of people look at the u. S. And then they look at europe. Tos been the stronger start the year in europe in seven years. The other thing is this u. S. Investors have been had been 10 billion a month into equities last year. That has dropped to 1 billion. Has that change the appetite in the u. K. . 16 billion worth of ipos this year. I will show you three people that dominated the scene of retail. Carry he. Terry leahy. Stewart rose. And sir philip green went ahead with his mysale. Com business. It was a bit of the debacle. Thank you very much, indeed. We will continue the theme. Later on we will speak to the Euronext Paris ceo. That conversation coming up on the pulse. President obama is deploying military advisers to help iraq beat back sunni insurgencies. Our middle east editor Elliott Gotkine is following the story. The u. S. Is getting more involved, but given the politics of the country right now, it is getting involved reluctantly. Yeah. Lets not forget that barack obama was the u. S. President to take troops out of iraq in 2011, trying to undo the middle eastern misadventure of george w. Bushs war there. What he is planning to do now is to provide up to 300 special aboutions people, talking navy seals, army rangers, who would be there to gather intelligence. Reconnaissance flights which would also gather intelligence on the Islamic State in iraq. And on isis. These are the in searches that took over iraqs second city the other week, prompting half a million iraqis to flee their homes. Millionng off with 400 in cash. When barack obama was speaking, he was adamant that this does not mean the u. S. Is going back into iraq as before. American forces will not be returning to combat and iraq, bubbly will help them take the fight to terrorists who threaten the people, the region, and american interests as well. So guy, no boot on the ground, no airstrikes which is what the real all maliki had been asking for. He asked for your us help. Not as much as he hoped for. The message coming out of the white house is that maybe he is not the man for the job. Yeah. There is not much love lost between me Prime Minister and the u. S. Administration. The u. S. Has been trying to persuade shiites to try to shunt aside, and get a new man in charge would be less divisive. The u. S. Administration sees the current Prime Minister as someone who has only served to exacerbate this sectarian tensions in iraq and by having new Prime Minister, perhaps things could start to move in the right direction. These 300on of special forces that the u. S. Plans to provide would last a few weeks to allow for a new government to form. Thank you very much, indeed. Covering what is an increasingly difficult situation and iraq. More on that story later. Thank you. We will be joined by iraqs former defense minister. Later on the pulse. Coming up, the paris pitch. And see mincemeat fra and siemens meet the french president. Jo guarantees are stronger. Bit is still about creating 1000 jobs in the next three years. After three years an independent agency would say that these 1000 jobs are not met creations. A that was the medi representative commenting on ges bid for alstom. What is the battle for alstom tell us about the trends in m a and what is happening in france and whether or not you want to do a deal there . And politicians that back them. Lets talk to the europe m a practice later. Good morning. A has been a big theme running through the last 12 months. Shire. Ot and we have got what is happening in france the focus of attention surrounding alstom. Lets focus on the lesser of them. Deal making in europe. Looks increasingly political. Is that a fair representation of the story or is alstom a blip . If youre going to invest any european country, you have to understand how business is done in that country. In many European Countries the post you have very strong union representation. You have very strong cooperation between the political powers, the business and the workforce. And that is the nature of the beast. If you want to invest in those markets, and there are fantastic businesses there, then you have to understand how business is done there. I think it is the nature of the beast. When we sit here in london with what they call our anglosaxon mindset, they do not understand why we dont understand that. Particular cross for deal makers. It is important because what you want to do is invest in the business. You need a workforce to come with you. Most deals are predicated that we are stronger together. So you need to understand how they operate and except that is the nature of doing business in that country. Do you think it is going to put ceos off doing transactions in those countries . Does that mean that there used to making an offer become higher and higher . It is a major consideration. If youre going to invest in the country, really think it through. It is probably the barriers to closing deals. But more importantly it is the inrs to or implementing the deal. Once it at the businesses working together, and you need to understand if you have a german workforce, how does that workforce operate . Reflectionocess is a of the culture of both the country and also the organization. Do you think the balance would shift significantly if we were to see a change in tax legislation in the United States . There is a political question. Absolutely. Look at some of the deals that are happening. A lot of Global Corporations spending a lot of money outside the u. S. They will say that is because there is investment opportunities. I have mixed feelings. But there is an issue there with tax. I think that is having an impact. When you look forward at the will seeeal flows we moving forward into the second half of the year, how much are we expecting to see and do you think the ceos looking at the landscape in front of them are still more inclined to spend money on buybacks and dividends rather than going out and doing transactions . If you look at the first half of this year, there have been a lot of big announcement. There have not been that many big deal closures. Over the last six months, 10 billion, there have been two. Very few really big deals have close. But there is a lot of noise. If we are looking at in terms of what is closing, we can expect that to pick up. There is so much knows going on. Pharama is a classic sector. On top of that you have the macro picture. Will confidence pick up . Will economies continue to grow . Confidence is the big challenge in m a. Marketbelieve that the is picking up, companies are more comfortable to go out and commit transactions. Being an optimist, i will have to say if the economies are picking up, that will continue to drive confidence. Plus, we have this big pipeline of announced deals and rumor deals which we think certainly many more of those will come to for russian. This come to fruition. You mentioned the pharmaceutical sector. Shire. How much more change are required to see in that space . Been rumored for a long time. I think a lot of it will have been anticipating this kind of enticement would come. Shire has been anticipated. They had a statement ready to go. Big transactions or do you think we will see smaller scale . We will see transactions of the shire size . A if you look at the pharm industry what is driving the big transactions as the way they have gone from developing products. Thesed to be big pharma did initial research, developed the ideas, took them to market all the way through. Et theshifting to well l Smaller Companies do research and we will buy a pipeline. Whole Business Model has shifted from building your own pipeline to buying the pipeline. What isa large part of driving these transactions as well as Different Company specializing in different aspects of the market. My take is that will only continue. Thank y very muchou. Now, coming up, keeping up with carney. We sit down with the hiphop mogul and cannes. Who he considers one of his biggest idols. Coming up next on the pulse. Welcome back to a quick view on the markets. We have had a flat week. Of aondon market is up 1 2 percent. Are we running out of steam . There is a race for yield. What are we waiting on . Lets go visit greece. Conversation im having with the recapitalization going on in greek banks. They are queuing up to buy those. And Consumer Confidence in the eurozone is something we will find out about. Have we improving confidence . We are expecting that to be the highest since 2007. It is the dollar that is the dominant conversation. Dollar is dropping. Just off the onemonth low. Me. E weakness to co and you have seen sterling give back some of its original gains. We are in the upward move. 1. 7053. Off a 5. 5 year high. Stay with guy for the next big piece on the pulse. Good morning. Welcome back. Youre watching the pulse. We are here in london. I am guy johnson. These other top headlines. President obama is sending 300 military advisers to iraq to assist the government. Obama insisted American Forces will not be returning to combat roles. He has also dispatched his secretary of state to the region for talks. Secretaryirection kerry will depart this weekend for meetings in the middle east and europe. s neighborsiraq must respect all of its territorial integrity, all of its neighbors have an interest in ensuring that it does not become a safe haven for terrorists. New fighting between the Ukrainian Government troops and insurgents in that country. That is despite a ceasefire declared by kiev. Nato is condemning russia for messing new troops at the ukrainian border. Maserati will double in Dealership Network to 500 by 2015. We spoke with massar seratirs ceo. At the end of this month, june, 2014, we will be already equal for this month. Is more to come. Ok, lets talk about the world cup. Last nights world cup news. It could soon be over for england. No surprisingly after his second losst. This time to uruguay. This header just before halftime. Goal, hasey got a first ever in the world cup. That was 11. But another goals feels englands fate. Tough angle. He had surgery on his knee. It did not stop him last night. He looked pretty fit. This was the moment. Fans celebrated colombias victory over the ivory coast. They will not be raising glasses for their team because bogota has banned all alcohol sales in a bid to curb violence. After columbia thrashed greece broke out gunfights in bogota leaving nine deaths. And football fans are having a hard time speaking out film tells the story of how the body got started. So far is only been shown in portugal and serbia with no word on a wider cinematic release. Enjoyable,he film is but the president committed script changes and critics slammed the film as a vanity project. Fifa. Interesting organization. The top names in the advertising and marketing world are meeting in cannes. We are on hand to catch up with the ceos. West andown with kanye asked him about his place in pop culture. Kanye, you said to the new york times, you can be due culture was steve jobs had been to the internet in terms of music, fashion, art. How do you connect them all . Steve jobs, as everyone knows, is the biggest influence and just seeing the way that he fought to make things easier for people. After he passed, a lot of people tweets that i sent out where i made it my lifes mission to do what he did inside that company, to take my position as being visual and help ial, to want to say these big overthetop statements that end up getting quoted the wrong way. We appreciate that. Help raise theto allette, raise the taste level of a generation. She also set down with the seo of wpp. Wpp. Th the ceo of how legitimate is social media data . On facebook i love to say that i like things that make me look like a glamorous wife and a great mom, but the truth is, when i am on sites like by seed, what i am clicking on, what celebrities look like with no makeup on. A discount and what people say their identity is online . There may be. Theres not much of a discount as you are suggesting. You can track their behavior. We would like to be able to track their behavior. The data we get is pretty good. What we have to be careful about is putting our own preconditions or assumptions into it. Internet results and advertisers making more money selling more product, or is it a Bottomless Pit . No. It has gone through two stages. 2. 0. 1. 0 was i have got to have something. We are under spending. On average, the industry is 20 percent internet mobile driven. Wpp is 36 . We are almost double. We want to be at 45 . In that first phase of i have to have some of it. Th second phase is mia investing it wisely, which comes back to the issue of fragmentation and the pressure in topline growth. What people are interested in is making sure they maximize return. In moving money from Legacy Television to tablets or smartphones. Did i think i would ever watch the world cup or mad men or house of cards, did i think i was going to watch it on the smartphone . No. This green is acceptable. Eenis quick, easy the scr is acceptable. We are all doing it. We have moved to the second phase. It is not indiscriminate spending. It is better considered. Effective in a more way. I have never seen him in a tshirt. Now, coming up, the big data debate. Find out why our next guest says the phone in your pocket is the data goldmine. If that is true, how should you protect your identity . Were going to talk about that when the pulse continues. Good morning, everybody. One of the themes of London Technology week is big data. We are creating a lot more data than we ever have before. We have got a lot more capacity to store it. The question is are we using it . The companies have not figured it. Carolinese hyde reports on companies that are turning this data into hard cash. Thursday night in Central London dance theater. Tickets are selling, crowds are building. They are here to see a dance show. Every person here is a source of data. Who they are, why they have come and whether they will, come again. You may have a blockbuster but then you will also have something that is quite a niche show. Finding the right people who love that show and fill out the theater becomes hard. And that is something we can help with. Dunn and her husband are the brains behind purple seven. S to draw bigeger crwods. Out like to compare it to oil. It is not until you refine get that it becomes valuable. That is the real challenge. Big data is all of this stuff streaming out. And we have got to build refineries so that we can find the stories in the data. They represent one such refinery. Clie, the data scientists, and edwina, the marketing mind, help the 1990s. O in 17 million have signed up since. You could tell whether someone was buying an item on promotion, because they like the brand, because if they did that, they bought all the time. Or because it was on promotion that we. The previous week they bought whatever else was in that promotion category. Tesco has been forced to defend its loyalty can scheme as a privacy scheme. It was all about you are where you live. That is removed into brands, it was more about you are what you eat. And that told us something about life. Nowadays our interest is you are what you enjoy. I some cases, what youn spend. Like classic. About crowdces are sourcing. The needs of messages by using an app where people make comments about their churning. We are crowd sourcing from social media channels. From simple analysis to understand whether that, where it is. Media, onlinel questionnaires, and weather data, the company, in place, is working on developing a platform tha matchest sentiment. The goal . To make journeys a smoother. Local governments scientist and because it has an opportunity for them to be able to really understand. In realtime what the residents of their neighborhood are thinking and needing. So whether you are catching a train, buying groceries, are going to the theater, your data is on display. And companies are cashing in. Caroline high, bloomberg. Lets pick up and tell more about big data. Caroline hide is here. We have the ceo and founder of citizen me. Lets start with you. We talk about big data. In your travels, have you come up with anything that gives us a sense of how big big data is . Not only the opportunity. Give me a sense of how much data there is out there. We talk about big. Lets put it in perspective. Millionuilding a 1 Square Foot Data Center just to put the data that they cannot decipher. This is in a vast scale. It is becoming too much. We need to start drilling down and getting real world uses out of this vast quantity of data. It is a 45 billion industry. We are getting Companies Like db that have mango the software that you can drill into the data you are capturing. Maker, browsing a juice and it will haunt you every time you go on the internet. These are the companies that are billionh more than 4 because they see the quantity of data needed to be successful now. You talk about data mining being goldmine. How much of the data relates to me . And how much of it is useful . Give me a sense of down at an individual level, what we are talking about. A phone was tracked for 24 hours on the phone was sending as of information in a day. That is going to everything from birdsg tom and angry sending your Contact Information through two your browsing behavior and other apps. There is a huge amount of data there. Location alone, for different location points across the day and you can tell where you work and where you live. If you map that onto traditional used,ing, which is still you will have a gold mine of information. The cutting edge for mobile marketing is working out where you live by your gps in your phone and mapping that onto your postcode. That is very clunky. It is telling you things like the fact that because you live in this neighborhood you probably like this serial. Cereal. The information you have on the device we have not set up. You will have your washing machine hooked up. The internet of things will allow you to connect. There is a plethora of information, some of which is junkie, and then there is a really key insight as well. What is it that is holding us back and making more of this information . Is it that we do not have the processing horsepower . Is that our lack of information or the marketing world lack of imagination in figuring it how to relate a to b to c . Where is the bottleneck . Theo advertising funds internet. The internet is ubiquitous. For advertising to work, you need personal data. The way personal data is collected is by Big Data Companies who, data brokers, who will harvest as much information as they can, which is not given with consent, and they will take lots of unstructured data and try to jam it together. Company thinks that i live in texas because i went to sxsw. Because it is collected from a lot of different places, it is not accurate. But it is out there. It is early days for the internet. If youbelieve is take the information yourself, curate start to self that information. We as individuals can be better. Choosing what we decide to sell to amazon and to the retailer. Is the information that is pertinent to you, that you want to share. Why the internet is free, because we are paying with our data . Look, they provide an amazing service. And they are up for by advertising, which is fantastic. The way they collect information is really inefficient. They give up tens of billions of dollars wasted by advertisers a year. Advertising using this data, they are miles away from using this stuff effectively. Miles and miles. You listen to what is coming out of cannes. They are so far away from having figured out how to use the stuff. I am amazed. Coming back to my question, what is it were not doing . From our point of view, we can go that way. Why cant the Advertising Community figure out . It is early days. Weve only had social stuff for 10 years it is still clunky. If you look at the advertising ecosystem, it is fragmented. You need to have the ability for people to share the data. Then you start creating efficiencies. You can use the market to drive that. The way we work is that everything all of your data gets mashed up into large groups of 10,000 people at a time. We have a foundation which is a separate company, a separate nonprofit which oversees the government of the data. But we have to be a marketdriven company on behalf of consumers to drive the market. Tha very much for stopping bynk. We are back in two minutes. Welcome back. You are watching the pulse. 30 billy needs to be invested 30 billion needs to be invested to enhance the infrastructure in the caribbean. Caribbeanned by the Development Banks president warns smith. Good morning. At the moment you guys are playing a lot for your electricity. We know you have geothermal and you have sunshine and wind. The opportunity for renewables is enormous. How do you make the transition . The transition will be made possible by creating an environment where private and takean come in advantage of the huge returns that are possible because of what is now very inefficient environment. So that what needs to happen is we need to focus on creating that regulatory environment, which will induce the private sector to take advantage of that 30 billion possibility that is there. Islands of small small countries. What you need to do is figure. E. , link to be one, i everybody up and make it a lot more efficient. You are on the right track, but it is not going to be possible to link up everybody on the islands, recognizing that we are yes. So the technology, i do not think the technology is there yet but there is opportunity for interconnectivity. That has got to be part of the solution to the puzzle. So that where you have small islands with large capacity for production, what you need to do is to interconnect them to nearby islands or landmasses which need cheaper energy. Timescale . We are saying mediumterm, meaning over the next five to 10 years. Isis a big project, but it exciting because it holds great prospects for the Economic Development of all the caribbean. What were talking about here is the possibility of combining renewable sources with also Energy Efficiency measures, which will make us more competitive by driving down the cost of energy and also opening the possibilities to new industries. If you ever want anyone to come and see it, i am your man. Back in a couple minutes. Unrealistic. Ceos make their pitches to frances president later today. The tail of tale of two sales. Good morning to our viewers in europe. Good evening to those in asia. A warm look into those waking up in the United States. Im guy johnson here in london. What have we got coming up for you . We are going to go to iraq. This time running out for the Prime Minister is time running out for the Prime Minister . We talk to the foreign defense minister of the country. Gm and siemens make their cases to the french president. , ge has just come out and heavily criticized siemens offer for aslstom. Unsurprising, i guess. Thats right. Paris. Is raising in you have ge coming out with a statement saying that the siemens offer is unrealistic. The cash component of ge is still higher than siemens and that the siemens bid will split alstoms businesses. Just after an improved offer from siemens and mitsubishi earlier this morning. Ge says they will improve their cash component. It will make their offer less creating less joint ventures and creating a joint venture with oust him als tom. Tension is rising, a lot is at stake for alstom. We will wait and see what is the reaction from the french government later today. Talk to me about the Union Reaction for this. They are having a huge influence, the unions. I guess the politics is reflecting that. What have they been saying . Thats right. The unions of oust him alstom met with Jeffrey Immelt himself yesterday in paris. The reactions were pretty mixed after the new, improved offer from ge. Instead of just taking over the Energy Assets, they will also create joint ventures with alstom, they will also create their well business to alstom. Mixed reaction. Some say they are reassured in terms of job guarantees. Some say it will still mean the dismantling of alstom. Back in the race compared to siemens and mitsubishi. ,nd there is a lot of unknowns especially about the joint ventures and the maintenance of the turbines. It is still difficult to really choose between the two offers. We are still waiting for the reaction from the french president. We got some reaction from the Prime Minister singh, it is up to the company to decide. Alstom will meet with its board to decide which offer to go for. Busy weekend. Thank you very much indeed. Theme. Tay with the m a shire stock is the biggest gain. The company is best known for its add drugs. Deal or ascuss the lack of it is our deals reporter, matt campbell. Shire says the offers fundamentally undervalued the company. This company has seen significant escalation in its share price over the last few months. A lot of people are expecting shire is going to have to accept that it is a takeover target and that that takeover is at a reasonable price. This is one of these perennial targets. Eventually, they do tend to get caught. Bought. These rumors happen for a reason. There are also lots of other pharma names that have been mentioned over the years in connection with a possible bid for shire. We dont know if any of those others are going to be making an approach as well. It is certainly something that will be on the mind of a lot of shire investors. Will the be others who will come out of the woodwork besides abbvie offering more . The u. K. Has a right to defend the science base that exists. Do you think they will be concerned about shire . No. Astrazeneca is a household name in a different way than shire. It is also not a u. K. Domicile company for tax purposes. Shire moved its own domicile to ireland. It has most operations in the u. S. National an emotive issue the way astrazeneca managed to become. Doesnt have huge forms of dollars sitting offshore that it wants to spend . Is that the main reason . If you speak to people on the there is great sensitivity around being accused of doing something just for tax purposes. Clearly, it does not hurt. All of these companies have lots of cash. Theyll want to buy something instead of paying 35 Corporation Tax in the u. S. We will leave it at that. We will be talking a lot more about that. It is a big day for ipos. For more on what we have seen this morning, our markets editor is here. Manus cranny, what do we have . We have two sure sales driven by regulation. There is a shock. Urinex. Equities are recovering. Xt. Eurone equities are recovering. On the flipside, tsb. Stock than they initially anticipated. Nearly a third of it falls into retail investors. They have stock up 13 on the day. Two very different stories. In terms of what we are seeing in europe versus the United States, what is the picture there . What is the timeline for the rest of the year look like . It has been a strong start. Million. Are about 78 last year, globally around this time, we werent about we were at about 55 million. Europe has had the stone the arc. Strongest the u. K. Is really winning the show. U. K. Ipos coming in at just over 16 billion. Retail, retail, retail. Are we at the peak of valuation . Are we on a bubble . A chase for yield . The u. S. Investor was putting 10 billion a month into European Equity markets, that has dropped to 1 billion per month. Of u. S. Investor coming out the heat in european equities. Back to you. Stay with the pulse. We will be speaking with the ceo of euronext. That is coming up in little bit later on. I want to turn our attention to geopolitics. President , barack obama, is deploying military advisors and reconnaissance planes to help iraq the back insurgencies that threaten to tear the country apart. Is on the story. The u. S. Is getting more involved, but not in a big way. That may tell us an awful lot about how the Obama Administration views the situation in baghdad right now. Yes. Obama, one of his achievements since he has been president , is to withdraw troops from iraq, to undo the middle east misadventure of george w. Bush. He is not about to commit u. S. Forces into iraq. What he is going to provide is up to 300 bushel Operations Forces Personnel Special Operations Forces personnel. They would not be on the front line. They would be gathering intelligence. They would be largely sitting back behind the frontline, working on intelligence. U. S. Does not mean that the is going all in an iraq. American forces will not be returning to combat in iraq, but we will help iraqis in the fight against the terrorists to threaten the people, the region, and american interests, as well. No boots on the ground, no airstrikes, as well. Iraqias something the Prime Minister was hoping to get. Nowhat is the game plan from washington . What is the game plan in baghdad . Are we going to see a change at the top . A lot of people are saying that is crucial if the country is to move forward and we are to unite the kurds, she is, and sunnis. Shias, and sunnis. I think it is a bit someistic to say that character is going to come forward to unite all of these disparate groups. The feeling in washington is that they couldnt be doing any current Prime Minister. He is seen as a divisive character. He has only served to exacerbate tensions in the country. We have a little bit more National Unity in the face of this onslaught from the sunni , sometimes known as isis or isil. The u. S. Is discreetly looking to push the Prime Minister aside and have someone else at the top. Much indeed. Very coming up, more on the crisis in iraq. Many questions remain. The critical one is will the Prime Minister stepped down . When will the west take action on that front . We are going to find out. We will get the take of one of iraqs former finance ministers with an exclusive interview. That is coming up next. Everybody. Ning, welcome back. You are watching the pulse. The worst performer is the norwegian krone. Yesterday, we saw a big move. To tolerateling more weakness in the currency and are potentially prepared to cut rates. That was the market reaction. Again, we are seeing the euro having another leg higher midmorning here in trading. It has moved up by around 2. 4 . We are seeing a lot of volatility elsewhere. Here is the euro versus the swedish krona. That pair taking another leg higher this morning. A lot of activity centered on the nordics at the moment. Is what istivity happening around the norwegian krone. Lets get you a bloomberg exclusive. We are back talking about the turmoil in iraq. The u. S. Has invested heavily in the iraqi Prime Minister to create an inclusive government. But his actions have no forced the u. S. To signal that potentially it is open to a leadership change. Can maliki and his government remain in power . Lets ask ali allawi, one of iraqs former ministers of defense and trade. Let me ask you a fairly blunt question. Would you argue that we are now in a situation where it is essential that we see a new Prime Minister coming in . Can the incumbent continue in office given what we are seeing on the ground . Bei think it would desirable, i would say, to have a change of administration right now. Yearssly, the last few under the Current Authority has not been very successful. That a the odds are change in government would have the desired effect or at least would mediate some of the issues that are affecting the government. Is there somebody that would have a better chance of uniting shia, sunni, kurdish views in baghdad . I think if you look at the current crop and the political class, the answer, im afraid, is no. There is no clearly during waiting. Theres no person with all of the attributes of being acceptable and accommodating to all of the major groups. There are secondlevel politicians, those who have less of the baggage that mr. Maliki who have a better chance of forming a government that would try to tackle these issues rather than be controversial and divisive. There is not a leader in waiting. There are a number of people who may be acceptable within the existing ruling groups. But you have to look really outside of those groups if you want to have a person who is not byng affected or involved the various imaginations of the last 11 years. Of the last 11 years. When you look at how the western powers have handled the situation, are you frustrated that they have left it so long that we are now in the situation where we are . If you look at it over the framework of the last 11 years, 12 years, there has been a disasters,ncredible policy disasters come on the part of the west, the United States in particular, but also the u. K. And others. , the whole at it range of errors, you would be hard put to design them. It is an incoherence of policies. An incredible number of flipflops. Inexplicable switches in direction and policy and then spending huge amounts of resources directed by errors that could have been easily overcome with more coherence in the policies. The west has been remiss in this sense. The whole framework of invading and occupying the country and setting the interim government they were all mishandled in a profoundly disturbing way, leaving a huge mess, both political and security. It is not entirely the wests fault, obviously. Can we fix the situation and prevent the effective dismemberment of iraq as we know it now . Are we in a situation were ultimately the country is going to fall apart . Are we going to end up with very clear divisions running through the nation . It is too late on the part of the west to try to do it singlehandedly. You have to work with what is available on the ground. There are certain things that one can do to move in certain directions and to point out mistakes that can be avoided. I dont think were at the stage where it is imminent, the breakup of the country. But we are approaching it at alarming speed. It is nonzero probability. There is a slight probability. Now it is somewhere in the vicinity of 30 50 . There has been a massive increase in the risk of the country. Do the regional powers have and all of this . There have been accusations made. Criticizeda has been for its relationship with the sunni push. What will these countries now need to play, what roles . Iran, three major powers, turkey, and saudi arabia, have contributed to creating the instability in the country. Indirectly and directly. Opportunity has been created for islamists to expand into iraq. They are playing a dangerous game because there is bound to be blowback and a short period of time. Where it is game trying to buttress its relationships with the major shiite Islamist Groups and has a very powerful role in terms of the nature of government of baghdad. The turks have also been involved, especially in the north, amongst the population, trying to carve out for themselves a group which can support and be like the cap spot in iraqis paw politics. Each of these groups has played a dangerous role. Your insight has been good to get at. Thank you very much. Ali allawi, the iraqi minister of defense, former. Welcome. It is time for the new energy top headlines. Plants largest solar will have to take a 10 cut in their remuneration. Attempt to cap Greenhouse Gas emissions has been threatened again. In britain has grown by more than 1 5. Finance 324cts to Renewable Energy projects 3 four Energy Projects Renewable Energy projects in australia. Euronextalk about coming up. Good morning. You are watching the pulse. These are the top headlines. President obama is sending 300 military advisers into iraq to assist the government there with its struggle against sunni insurgents. He has also dispatched his secretary of state to the region for talks. At my direction, secretary kerry will depart this weekend where he will be will to consult able tolies consult with all our allies. Iraqs neighbors have a vital fromest in preventing iraq descending into a civil war and becoming a safe haven for terrorists. Nato is condemning russia for amassing new troops on the ukrainian border. Booming demand for luxury sedans. We spoke to the ceo. Cars last over 15,000 year. Without going into detail, at the end of this month, we will be already equal to this month. There is more to come. Ok. Key eynote is you news you need to know about. Manus cranny is here with your asset check. London is up 0. 25 this week. You are just off a 14 year high. Argue the toss about true growth policies and fiscal austerity. The italians are making the rules. , they have a few little problems. Overall, the themes of the equity map are about ipos. Mergers and acquisitions are driving the london market higher. Pharmaceuticals. Shire pharmaceuticals. Who could potentially bid for the next. We are waiting for eurozone confidence. Week, i feel a bit like a weatherman overall on the week you are seeing a bit of a dip in the equity market. I thought we would nip in and look at some of the commodities. Is going on in the commodity complex belies a much more substantial move. Gold has had the longest winning streak in almost three weeks. High. Ve a twomonth it is the longest winning streak in gold, i should say, since march. An e is coming back by ighth. Back to you. Manus cranny, thank you very much indeed. Debut today. Its that is after splitting off. Will euronext be able to regain market share in europes recovering ipo market . What happens next . We are joined by the ceo of Euronext Paris. Good morning, sir. Can i ask bigger questions about the business. Cash equities is a tough place to be right now. Why did you guys decide that this was the right direction instead of teaming up with some of the other big Exchange Operators here in europe . Why are we where we are today rather than a different direction . Good morning. Thank you for having me today. It is a great day for euronext, with our ipo. I want to clarify something. Euronext is not just a cash equity business. We have a very diversified set of revenues. We have cash equity, listings, derivatives, indices, clearing revenues. The cash equity is just part of our business. Donta figure people know, we managed to keep 66 of the market share on our equity business for the last three years. A very stable market share. We believe that our unique proposition in europe and our unique Liquidity Pool makes us a very strong contender in the liquidity race in europe today. That is the reason why you did not go deal with others . Believe that the first p of euronext recreation it is not every year that we have a Second Chance we believe that in order to deliver the better value to our shareholders, we need to stay independent and grow our business. Another number that people dont know very well is that we are the first listing venue on continental europe, in terms of number of listed companies and market capitalization. Okay. Lets change direction a little bit. Now that you are not part of a u. S. Group, do you think that you are going to get a more comes toic ear when it european politicians . Do you think it is going to make life easier for you in europe . Look, when we went on the road to prepare the ipo, we saw a tremendous support from everyone. In the Different National markets first, but also from investors. European ones, but also noneuropeans. Have a great Business Model. When we talk about financing the economy and small and mid caps and large caps, as well, they are on board with us. Ok. That is good news. That is an area that mario draghi would like to hear about more. We are seeing restructuring and that could extend to highspeed trading. What are your thoughts on highspeed trading . Where do you see it go in europe and what are the options for you guys . The second batch that is coming into force in a few rebalancing the loopholes created by the first batch. We are going to see a more balanced flow that is today in the dark that will go back into regulated and transferred markets. The highfrequency trading flow is around 21 of our market share today. We have a very balanced view of that. We think it little but a little bit of highfrequency is good, but too much needs to be watched unregulated. Andy, we are quite balanced are happy with the framework that the regulators put around that space. Change, asegulations the opportunities change, how is your business going to change . And the other assets you are going to go after . Any other options that youre going to look after. Where does the business evolve from here . Absolutely. Our base is cash equities. But we are working on many different asset classes. The derivative, for instance, where we have a very strong commodities franchise. We are going to launch more product on that flow. Instance, front, for that is aebt very interesting asset class. That is something we are working on. We are launching almost one new product every week or every two weeks. Whether it is on derivatives, equity options, indices. The new euronext will be very strong in that yield. Lets go back one step. You talk about bringing sme debts on exchange. Can you give me a sense of how early it is . This is something we are going to spend a lot of time talking about, particularly when it comes to what the ecb does next. Can you give me a sense of what the Regulatory Framework looks like . Were you guys are in terms of the process and how big the business could be . It is very early stage. It is too early to talk about which framework we are going to set up and what kind of volumes we can expect. Bringre, if we manage to this kind of product to a standardized and regulated environment, first of all, we are going to help smes to get more and better financing and second, we will help all of the financial individuals to get more present in financing. Withe working in paris authorities, with the banks, with the regulators, etc. To define this framework. I cannot tell you more. It is definitely something that is going to have our attention in the next few weeks. Paris ceo. Think you very much for your time. Breaking news coming up on als tom. Frances government said they have no preference when it comes to the bid. Siemens arege and meeting with the french president later today. Meet the ceo of al stump alstom before those meetings. We will take a break. Up next, we will speak to the brains behind wikipedia. Up, this is coming up on monday actually, bloomberg tv is a great story for you, one of the most exclusive hotel chains will be the focus of our attention. We will talk to the ceo of the peninsula hotels. Driverless cars are coming much faster than people realize. It is an Astonishing Technology that is well along the way toward being the product. Driverless cars coming faster than we think. But not literally. The wikipedia founder talking to us about what excites him. Tech thatuttingedge he is keeping his eye on. He now lives in london. Is a lot of really great excitement and energy. A lot of small startups. A lot of things have improved in terms of the amount of Venture Capital funding. Immigration policy, things like this are better. It is hard to say. I caution against this idea that we should be aiming for the next facebook, the next google. These are extraordinary, extraordinary companies. It is more realistic to think about, that would be fun if that the industryreally is always bigger than just a handful of superstars. It is the broad, how many 500 Million Companies can we create . That is the more porton metric in the long run. Important metric in the long run. Jimmy wales speaking to us there. Lets talk about everything from the battle to against terrorism. Making sense of it all is still a massive challenge. Big data is proving to be a big headache. Lets bring in caroline hyde. A lot of hype about big data. , toog data a big headache much of a good thing about thing . Potentially. There are not too Many Software giants able to decipher what exactly information is insightful and what goes to waste. Also, the retailers we have been aware of using. 5 of Ecommerce Companies were actually looking at the data and trying to analyze what you and i would want to buy on a general basis. Where they are doing well and it also kind of creeps us out you have target, u. S. Company, which was so good at seeing which lotions women were buying that they could protect when they were pregnant. They would bombard them with advertising. That got a bit of a backlash. Aey are having to throw on curveball like, would you like a lawnmower with your diapers . Are some pennies. Retailers are getting it. Are companies. Retailers are getting it. It can work as a force for good. The amount of cancer data that who iss out there getting particular tumors, what sort of problems are arising cataloging mean genetic mutations. Finding trends in the environment. China has a company that shows where waste facilities are, power plants are. The founder of alibaba wants to have a less polluting china. Big data can track deforestation, pollution, human trafficking. Realtime social attractions, blogging, Text Messages. Sending out mass Text Messages to try to calm situations. It is working. It is still nearly being used to the degree one sector of industry that really seems to suck at this is the advertising industry. They are so bad at it. I am stunned. I am stunned they have not figured out a way to use it better. This is why the services for big data are set to ramp up. This is why we are said to see money being sent through the companies. Is a 45 billion industry. Posted 700intel million for the club. It is now worth 4 billion. It can help decipher the data on ie one i so ash on you and to make sense of it. Companies that help ebay and target. At the moment, it is him proving a bit of a headache. It is about figuring out which data is useful, rather than store it all for the sake of having it. Thank you very much indeed. Lets get your company news. Shire is the biggest gainer in stocks. Shire has rejected three of its offers. The latest bid was for as much as 46. 5 billion. The chief executive of ubs belgian unit has been charged in part of a probe into a tax fraud scheme. The investigations deal with things that began a decade ago. The belgian chief denies all of the charges. Eye has filed an ipo in the United States. We will wait and see on that one. ,p next, in the era of the app patients are growing impatient with being patients. We will look at the growing world of medical Smartphone Technology and apps. Welcome back. If you hate going to the doctor, you may be happy to hear that there is now an apt to deal with it. In fact, a few startups are in the process of launching groundbreaking technology that is going to let you diagnose medical problems from the comfort of your living room. Im not talking about going online and finding the most scary thing you possibly can the could relate to your symptoms. Sam grobart takes a look at three of these companies. Certain technological athroughs have of way way of making our lives seem more like Science Fiction than reality. All of a sudden, the future is happening kind of right now. Of arty changeps the way we work and communicate and the next step is how we take care of our bodies. We may be able to diagnose andelves using tiny sensors the Computing Power that is already in our hands. One company is developing a handheld scan sir scanner that you will have hold your four head. Forehead. Another company has developed a mobile accessory which turns your phones camera into a sort of your scope. Scope. A third outfit has developed a smartphone based ultrasound machine. It cost less than 8,000. A standard ultrasound reg will cost you rig six figures. Will cost you six figures. There are skeptics out there. In some cases, they may be right. These products are works in progress. The improvements seem to be inevitable. Think about it this way. 10 years ago, we barely knew what a smartphone was. About are talking driverless cars. If you look at the history of the future, one thing seems clear, it is happening faster. The fewerto trip to the doctors with my kids. That has to be a good thing. Lets look at the currency markets. Yesterday, they talked about being comfortable with where the norwegian krone is. The talked about cutting rates. Atch this space surveillance is coming up next. Tom keene will be at the helm of this program. We have a great guest coming up on bloomberg tv out of europe. We will talk to the boss of peninsula hotels. It is one of the most exclusive hotel chains out there. To speak to the companys ceo. Theyre debuting in paris. It is going to be a great morning to see exactly what they have. We will get it take from the company on what the future of the business is and the future of the hotel industry. That is something to look forward to after the weekend. In the meantime, have a great weekend. Surveillance is up next. Have a great monday see you monday. This is bloomberg surveillance. They will be targeted and precise in their actions. Sends 300 advisors into the maelstrom that is iraq. Changes to house leadership. Should you make changes to your Retirement Plan . The dow approaches 17,000. Everyone. Ng, this is bloomberg surveillance. It is friday, friday i say. I am tom keene. And adame, scarlet fu johnson. Adam johnson gets to a brief morning brief because it is summer. Tomorrow is the longest day of the year. Make sure you make your plans accordingly. Britains budget deficit is a little changed. The subtlety is that the tax receipts rose slightly as the uks economy improved. This is the success economy among the g7. Correct. It is like the greatest story never told