You are watching the pulse. Beer is going hightech. A big data story may be about to kill happy hour. Will rocket internet take off . The idea that could be germanys largest. Number outg you the of germany. 104. 7. That is significantly below where the estimate was. But we are seeing here is more dismal Economic Data emerging from the eurozone. The french data yesterday, not good. The german data, mixed. Odays data, not exactly rosy we will get an economist take on where we stand right now. Lets hop across the border. Conflicting reports about the future of air frances discount unit. It is being scrapped outside of france, or the plans to expand it outside of france in response to the worst strike the century. Commentsny says those are premature. What is going on . Are aviation reporter joins us now our aviation reporter joins us now. It is a moving target. Air france saying it is premature and they have 3000 employees that have signed the petition asking the pilots to get back to work. They are not adding on anymore to this conflict. The members of the staff want everyone to get back to work. It is interesting to see this out of the transport ministry, one wonders if they are trying to put pressure on air france. T is an embarrassing situation the premised are saying, you guys need to the Prime Minister singh, you guys need to get things moving and get things back to work. It to be wants resolved. These are the striking pilots. This is them yesterday. They are not backing down. Have asked for the government to get involved. That was at their event yesterday. I did a strike outside the french they did a strike outside the french assembly. A significant section of the entire lobby. Intotrike is due to go friday and it could be extended. It is still on at the moment. Pilots,ncedes to the not a very good president to set. Precedent to set. If he does not go ahead with the project, he is putting himself in a disadvantage. Iag this is something that is pivotal in the longterm growth of the airport. What we are talking about is transaviaend a via the idea is they have the charter operation that was based in holland going into amsterdam. That has been extended a little bit and you france, a little over a dozen planes. They want to expand that to 100 planes. The pilots are worried that those pilots working at this space is outside of france would be on a different contract. The benefits would not be as good. The company has been able to make job cuts when it comes to the contract role terms, that is for things are task. Tough. The pilots are not backing down on this. Im sure we will have more information. Later this hour, we will love more on this story have more on this story. An expert on the European Aviation space. Approached have expressed interest in acquisition. Pfizer abandon its takeover of astrazeneca back in may. I thought we were done with inversions. Is this about tax or drug pipelines . This would be and version. That story of u. S. Companies trying to relocate abroad still has some way to run. Defiantas been fairly of these noises coming out of washington that to do these inversion deals is not patriotic. He is prepared to put his money where his mouth is, as we have reported. Ctavis is a big company. It is a bit of a legal dodge. Proper one ifely youre in pfizers position. Trigger on ahe deal like this. The ramifications of it later. We will fight the fight with Congress Later on but we need the transaction in place now. What we did see come out of washington the other day, these have not really been as dramatic as some people were expecting. They can to nibble around the edges. Rather than really going after the core rationale. With certain adjustments to your models, you can make an inversion work. Thank you very much. Thought it was all over. Matt campbell, our deals reporter. Blackberry will unveil its first major new device a little bit later on. It is called the passport. It is a big step forward for the new ceo. He took the helm last november. The company has a steep road ahead. Caroline hyde joins us with some details. The passport is a little bit different. We may have some shots of it, but this is not what you expect. This is not the traditional smartphone model. It is square and looks very different. They are desperately trying to user. E business the keyboard is still there. It is 4. 5 inches. Still smaller than either of the new iphones. It is also cheaper. Plan. Ithout a mobile they will be unveiled much faster in toronto and dubai today. That looks like it is built for accel. Excel. Theyre going for the doctors among us. They have a bloomberg assistant. You can be efficient while you are traveling in your car. It is Business Front and center. Bloomberg or a blackberry . Slip of the tongue. It got hardly any headlines. Everyone is saying, look, why on earth would you buy this . You have to be very niche if youre going for the expensive version. The new passport is trying to affirm, we think it is important and we want to woo you if you are a business person. This is a firm focus on business. Apple is focusing on video. Blackberry is getting back to its roots. Spreadsheets, the keyboard. It is all of the things that businesspeople want rather than those who are watching videos or youtube. Samsung and apple are killing it. We want video, messaging devices, pictures. Businesspeople do really like a keyboard. Is it enough when apple has already teamed up when ibm . Is it enough when you and i dont want for different devices. Four different devices. We have far fewer businesses providing you with a phone nowadays. Citigroup ran some numbers. Four years ago, 3. 5 billion phones per quarter were being provided by business. Now it is about one million per quarter. Ibm. Is teaming up with the ceo is an incredibly nice guy. He is not much of a device guy himself. Realized that Software Services is where its at. It is all about security. Like they are still trying to make it relevant. Carving out a small niche. Can they be profitable in that niche . Anecdotally, a lot of people seem to miss the keyboard. But you can get the keyboard for your iphones. You can do everything by your Android Devices were iphones. Or iphones. Sat. Are services, where it where it is at. Youre right, niche. When you have 10 million devices selling in a weekend for apple thank you very much. Blackberry, we will be talking to him from toronto. Right after we sue the unveiling of the new passport mobile phone. Business confidence in europes largest economy continues to decline. We will speak with an economist about the disappointing data we have seen this morning. Welcome back. 60 minutes past the hour 60 minutes past the hour. Hour. Minutes past the more uncertainty to the economic picture were seeing at the heart of the eurozone. Lets go to munich. Good morning to you. How depressing is this number . Seen a decline in all sectors, articulately in manufacturing particularly in manufacturing. Exports are weak. In sectors like construction, the Business Climate declined this month. What is behind that . Is that what is happening in russia . France . What is the message we should take away from this . The main reasons are probably the sanctions, russia and ukraine. The weakness in the euro area. Entrepreneurs, which had relatively strong investment, this year in germany, they are getting a bit cautious. There is a wait and see attitude. At the moment, people are very cautious to start new investments. What do policy makers need to do now to get confidence back and arising trajectory back on a rising trajectory . What do we need to veer from the ecb . What do we need to hear from Angela Merkels government . Problem. B is not the need is on the political scene to get a clearer picture that the russiaukraine problem can be solved. The new European Commission is getting started. The Business Community is waiting for some news to get started again to invest. Nothing. N do what impact will fullblown cue we have on the German Economy . Qe have on the German Economy . Credit is available here. The credit costs are low. For germany, at least, this is not the big problem. That was the point i was about to come to. Germany needs the rest of europe to get going. Should germany be supporting even more aggressive Monetary Policy and fiscal policy and the reduction of some of the austerity measures being imposed on the rest of the eurozone . To help support the german export machine . The ecb is already doing that. There is not much more you can ask of them. On the fiscal side, things are much more difficult. Already ies have some have room to maneuver and others are still fighting for it. It could, from the new commission. It could come from the new commission. You dont think that now is the time for bold action . We should see a significant loosening of the austerity rules . Qe is something the ecb should pursue . Moment,t say, at the just preparing our new report, so i will not go in detail. For the time being, the point i would like to make is that the ecb is doing their job. Some countries, the credit situation has to be improved further. This helps indirectly germany. Directly, we do not need such measures here. On the political scene, sanctions with russia may be some solution. That we get some peace agreement. That would help the Business Community. Gettinganguage we are from the ecb and outs where in europe seems to be elsewhere in europe seems to be pointing to a weaker euros. Is that something where you think the eurozone should be focusing its attention . How big a difference would it . Ake to the export story what should we be doing on the currency . How aggressively should we be getting that down . Changes,pact of such they operate slowly. Even if europe were to decline further, you could not see this immediately and exports. It takes a long time. A weaker euros is helping quite a bit of countries. At the moment, the your level would be ok the euros level would be ok. Italyreas, illegal is probably hoping for a weaker euros. In the end, this will probably be the trend. Ok. Thank you very much. The view from the institute. We will take a break, back in a couple of minutes. Welcome back. You are watching the pulse. We are watching the markets. Lets start with the german Business Confidence number. It is a slip for a fifth straight month. By have the ftse 100 down 10. Reaction in the euro, a little bit of a slip lower. Bottom line, you have to think about this. Ecb coming out with this plan and that plan. German Business Confidence just carries on sinking. This plan is to stimulate business across the eurozone. The money in the bond market going to burden the german 10 year, down one basis point. The data does not look good. Mario draghi says he will do whatever it takes. Anymore . That mean we will talk about big data in happy hour hour when we come back. Good morning, everybody. You are watching the pulse. We are here in london. Pimco says it has been cooperating with the authorities and it believes procedures are entirely appropriate. Massive amounts of suppliers are still needed in liberia, sierra leone, and ginny to help control the ebola outbreak. Or maybe a million cases by january. Issue, with a commitment of the population in the government of nigeria and the states, we will contain ebola. President obama is calling for a deal to combat Climate Change. More than 100 World Leaders gathered at a u. S. Summit. Global warming is the issue that will define this century. The climate is changing faster than our efforts to address it. The alarm bells keep ringing. Our citizens keep marching. We cannot pretend we do not hear them. We have to answer the call. What our business is doing to help tackle Climate Change . Caroline hyde is back. There was a clear voice from business at this new york summit. A lot of pledges being made to help emerging countries get their carbon footprints down. It is all about gaining momentum. It is a bit of a publicity stunt as well. A lot of european voices. You had air france, as if it was not busy enough. Siemens. Voices coming from the fossil fuel industry groups. Ikea promising they will phase. Ut the use of fossil fuels what if you are a fossil fuel company . Statoil making some interesting promises. 30 companies. Players european gas looking at how they can reduce. A lot of talk about Carbon Pricing. This is a way of pricing something that is being inefficiently priced at the moment. You could be taxed on the amount. 75 in terms of tax for co2 emissions. They analyze it would be 50 per time is what they build into their model per ton is what they build into their model. Committed to Carbon Pricing. The world bank has done the heavy lifting. A thousand companies and investors to say, Carbon Pricing is the way forward. We have been hearing from some big investors about the fact that they will be just investing into companies disinvesting into companies that have a big carbon footprint. If they will get involved, they have some big tools at their disposal. Interesting move that has been taken. It started as a rallying call in the universities. They are signed up to what seems to be moving out of 200 companies. Hurt. Will be fund,ckefeller brothers this is a fund coming from the oil itself. They have said that they will nvesting in the 200 biggest polluters. If you invest, and put more money into these companies, you have a bigger chance of changing their behavior. 188 billion dollars is how much the California Teacher retirement system has. They will boost their investment in clean energy and technology by a smidgen, 3. 7 billion. Quite a smidgen. If policy changes, that could go to 9 billion. Warren buffett, everyone likes to hear him lend his voice, he will be doubling his investment in wind and solar energy. Thank you very much. More on this a little bit later. We will be joined by the ceo of carbon culture. How do we make changes to the way we operate and how does that all come together . About rocket internet. Double the amount it is seeking to raise in a Public Offering. The tech investor could become germanys largest Public Offering this year. Lets get more details from hence deckles hans nichols. They may want to go on International Shopping spree. Rocket is a holding company. They have a bunch of different startups. If they will go up against the alibabas of the world, the amazons of the world, they may need more cash. Forooks like they will go 1. 4 billion, 1. 8 billion. Quite a lot of money. They are in the 35 euros range to the 42yearold range. Euros range. We will see what kind of pop it gets. Will the alibaba effect take place here in germany . They take successful models and localize them to markets where they do have some expertise. They did it with ebay. Darling is their version of eharmony. Slightlyays, that is a unfair argument. So much borrowing from all of the big tech companies. Bingo facebook and myspace think of facebook and myspace. We will see how they do. They want to raise 633 Million Euros. Thank you very much. Lets move on and talk more about what is happening in germany. Hence nichols will be back a little bit hans nichols will be back a little while later. Making sense of huge amounts of inflation from everything from shopping to dating. What has been used for his beer. Elliott gotkine and has this report. There is an art to pouring the perfect pint. Now there is a science to go with it. The quality and quantity is being measured. The information is transferred to a box like this ready to be analyzed by the bar owner and brewer. Using the system has helped to cut waste and boost profit. Exactly what to do. Up 50 more profit. Sometimes 80 more profit. The Realtime Data come courtesy of an israeli startup. How many beers were consumed and what days and what hours and what regions. Hey can leverage the data they can monitor their beer quality. They can offer some unexpected beer insights. Consumedf the beer is when the bar is closed. That is probably the owner. Some brands do better on certain days of the week and in certain times of the night. Was so much data now available, bar owners and brewers can be more targeted with their promoters promotions. It may also end up killing happy hour. Devicesf these wearable and the interaction between the data telling you how inebriated you are or not. Up in the air, air france conflicting reports causing confusion. Well have details after what happens next. Welcome back. 44 minutes past the hour. Lets talk about air france. Air france has scrapped its plan to extend its low cost operations. The company says those comments are premature. Who is running this business . Lets get some insight on this situation. If i was the passenger looking at air france right now, i will be wondering who was running this out airline, whether i should book a seat on this airline. I would be scratching my head about the news we have had this morning. What message is being communicated . Government says one thing and management says another. Passengers dont pay that much attention. In the french market, given how difficult the economy has been, the average person in france is used to strikes at the moment. I think, unlike where we have seen other strikes in europe, this is a market that is very price sensitive and customers are saying, air france needs to survive. You think that is the case. Does the government have the same view . It looks as though the government is putting pressure on the company to back down. Is a difficult situation. The government is a significant shareholder. They want to win votes. The elections are never too far away. We have to step back a little bit. There are two parts. Air france wants to expand transavia. Compete with easyjet in their own market. They want to expand in europe. That is about setting up bases that will gain more scale. That is about taking the fight to easyjet. They have to have scale. Ryanair is putting 200 new airplanes. Air france wants to get transavia up to 100. If they want this thing to have scale, it has to operate on a paneuropean basis. Air france will have to go this way. The question is just a matter of when. The concern from the pilots are about losing air france pilot jobs. Unlike the sunset louis this is a very different strategy. That transavia is a true nofrills business. There is no question that some kind of violation happened, but that business is something that will do very well because the strategies are different. I dont see that transavia is going to be a threat. Eventually, this will have to be worked out. You do not see this as a threat. The pilots see it as a threat. They have been on strike for nearly two weeks now. This is 20 million operating a day for air france. Wonder this becomes the next essential story existential story. That air france pilots are very well paid. That is well known in the industry. I dont blame them for wanting to draw a line in the sand. The fear seems to be if they let go of this fight, they may lose future fights. Ok. The Prime Minister is talking now and saying air france needs a solution in the coming hours. Do you think this can be resolved in the coming hours . It seems like such a difficult conundrum to solve. Air france needs analyses the model at some point needs a lcc model at some point. Like a bigon sounds number, but in the airline business, it is not a big number. It really isnt. If air france gets into this fight now, they will have a difficult time picking out of this hole. They need to see this fight through. Air france has done extremely well in trying to turn around the core business. They have a Restructuring Plan and this is part of the restructuring land. It will have to face some difficult days. If they dont to that, they will face the same challenges their other friends in other parts have faced. It is important they find balance. The future sustainability hangs on whether to do a few things extremely well hangs on whether to do a few things extremely well or the need to have a Broad Spectrum presence in all market segments. It has to be 100 aircraft or more. Hearing from well respected people in the industry as well. Do you think he has got . Another two weeks question mark another month another two weeks . Another month . What kind of timeline . The longer the strike goes on, the unions look bad. People start to get frustrated with the pilots being greedy. Management does not lose. 20 Million Euros a day is not a big number in this industry. He has to stick this out a bit longer. France is a prounion environment, but there will be a backlash towards highlights who salaries are so extremely high. Always. At pleasure as really good to get your analysis. We will take a break. Back in a couple of minutes. There is one issue that will define the contours of this century more dramatically than any other. That is the urgent and growing threat of a changing climate. President obama speaking at the summit on Climate Change. He called on World Leaders to reach a global agreement to tackle the threat. He upped the pressure on china to reduce its carbon footprint. Is china the key in winning the . Attle good morning, just in. . Good morning, just in. Someone made the case that the chinese should have been at this meeting. The noise of the news that we hear at a beijing is the china is committed. Talk to us about the message we should be hearing. Right. Is absolutely some coverage a couple of weeks ago that the president was not going to be in new york for this climate summit. In the past week, we have seen a lot of announcements coming out of china regarding its commitment to reducing emissions. The announcement during the summit that china is willing to consider a limit on peak emissions. That means there is a redline to the total number of missions china can imminent emit. Note is a redline we should cross. That is a very significant signal. Were looking at the moment of pictures on the screen of smog and pollution. That seems to have been a big story in china. A big change in altering the opinion of the leadership. What are we seeing on a daytoday basis . There is a lot happening. This has come to pass in the past two or three years. Most days, it is not clear. There are two issues. The first one is environmental. Air pollution is a major problem. The public is aware of it. Leadership knows it has to do something about it. We will have to wrap it up. We will see later, thank you very much. Up in the air. Conflicting reports cast confusion over air france. A toorkt lower u. S. Taxes after it fails in its bid for astrazeneca. Is the new square smart phone the ticket to a turnaround . Its c. E. O. Speaks to bloomberg later. 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 United States. Im guy johnson. This is the pulse live from bloombergs European Headquarters here in london. What have we got coming up for you . Beer tech goes hightech. How big data may be about to kill happy hour . And well look at the i. P. O. That could be germanys largest this year. But first, let me take you back to our top story. There are conflicting report about the future of air frances discount unit. He countrys minister said plans are being scrapped. The company said that is premature. We had the Prime Minister speaking on the subject. Decisions need to be made apparently. Lets find out what is going on. Our aviation reporter has some details. Details are limited. It is interesting to hear them coming out with comments this morning. They had a significant stake in the airlines still. We had the comments saying the whole plan was scrapped and then the airline said no, it is not. On monday what they were offering is a delay of this project to expand their discount unit, transavia. You wonder if the government is putting pressure on air france. They want the situation resolved. It is very poor p. R. In terms of the brand france. So they definitely want this to be resolved and then you more comment also in the Prime Minister today. Definitely pressure on both sides. Pilots also asking for the government to get involved. So you wonder if they are going to be starting to get a little bit involved. This is the pilots yesterday striking outside the National Assembly putting pressure on the government and it is interesting this morning to see what we see. There have been demonstrations apparently by the crew and pilots that dont agree with the strike. Small ones at charles de gaulle. There is a petition going around asking the pilots to return to work. The company is it is trying to get everyone onboard with the returning to work. The idea is that the strike will go on until friday. Pilots have threatened that it could continue past that. You had a guest on earlier that was saying to some extent in the beginning a Company Looks bad in a strike situation. On, the longer it goes worse it looks in terms of the pilots. You definitely have a lot of very frustrated passengers. The last figures i saw was over 400,000 journeys have have been disrupted. Thousands of plans have been grounded over the last week. This is good for the exact people that air france doesnt t to be good for like easyjet. They have a big footprint already with Big Companies in france. This is going to further enhance that. It is definitely playing into the hands of their competition. F you are an executive and you have traditionally flown on air france and all of a sudden they are not reliable anymore. You might try easyjet. They are get me there on time. They are not striking. Easyjet has definitely built up their position so that was a base where air france wanted to develop transavia. The other company it could be beneficial for is i. A. G. Why not fly into london or adrid with iberia. The strike could go further than friday. It is not impossible. Thats what happened last week. It got extended. Further extensions could happen. It could happen. Every day this goes on, it is costing the airline 20 Million Euros in operating loss. They have said they will update the market once the strike is over with how this is affecting their fullyear results. Again, many analysts have spoken to are suggesting bumper results for easyjet for the full year. If youre investing in the Airline Sector a longshort strategy may be called for here. Thank you very much indeed. Bloombergs aviation reporter. Lets move on. Lets talk about m a and the pharma industry. Pfizer has approached for an acquisition. Astrazeneca. Lets talk about the Tax Implications if in the latest move. Is it taxes once again . Tax is a big part of this, guy. A very big tavis is company. Shares have run up enormously in the last few months. Pfizers chief executive is very clear they are looking for an immersion deal to get out of the texas to domicile which they currently have. That desire, we saw come out of washington the other day that would slightly restrict it. They can still happen. You have to fiddle the bit with the numbers. Inversions are still the order of the day in the pharmaceutical space. Despite what the white house says. Given what the white house has been saying, what is the possibility of this deal happening if for know now these two companies are not in formal discussions. There is some question as to whether pfizer can move now or would rather wait until after november when we have Congressional Elections in the United States this is similar to astrazeneca when that first came out into the media because pfizer made an approach that was rebuffed and then they started an almost bear hug approach to get the desire to buy astrazeneca out there. This is playing out in a rather similar way with pfizer being discussed in the media as having done this. We could see that in the next couple of days, of course. In terms of our understanding with the impact that these inversion rule change also have in the United States, my takeaway from this is not much. We always knew this was going to be a band aid over the issue of the inversion until we got a more formal deal down the road from government. The fact that pfizer is doing this do you think this will put other people back on the road to inversion as well . These deals are still in play. We have burger king and tim horton yesterday come out and say their transaction will involve burger king moving its domicile to canada is still on track. Another pending inversion transaction. It seems like things are still going on. What this does is maybe affects your math. You have to be a little more confident of the numbers. You have to structure things in a slightly different way to structure tax benefits that are closed off by the regulations. The regulations are from the u. S. Executive branch. They are not congressional legislation. The come with the benefits core rational remains for these companies. Blackberry is unveiling its first major new device since c. E. O. John chen took the helm last november but the company has a steep road ahead competeing with apple and samsung. Caroline hyde joins us with the details. It is different. It is. It looks different. It has a square screen for one. This is all meant to be targeted to business uses. This is meant to make it easier to access your documents. Interesting to see xrays. I saw this. Yeah. This is doctors and architects as well who may want the square screen. Others are not. On the square er format. It is going to be obvious they are going niche. Blackberry has a very small market share when you compare it to the 20 that apple has and the more than 2 3 samsung has. But they are coming out with a new product and want to remind us they still make hardware even though it says software and the messaging system that everyone likes about blackberry. The keyboard still wins users. It has a 4 1 2 inch square screen and doubles as a touch sensitive swipe as well. It is called a passport. It is 599. It is about 50 cheaper than the iphone 6. They are trying to circumnavigate apple and samsung saying were not going for the video users. Were looking hard and straight and squarely at the Business Users. They have slightly portrayed the Business User as square. Maybe they should have just called it the square. Passport doesnt allude to that. It is interesting this is a company that is out sorting the hardware story. It still has an element of design that this is heavily involved with. Focus on the software and the security that we know and love them for. John chen came aboard in november last year. He signed a deal and said were not going to do the hardware anymore. They outsourced it. They are leaps and bounds in terms of software within cars as well being able to have cars that are connected device. They have been front and center. John chen is a really nice character. He is not that much into device himself. He said i only carry one. The q 10. I dont really like wearing wearables. He is a software man but he is also trying to reclaim profitability. M, thee came to the hell stock is up 6 . It used to be worth 83 billion at its peak. Needs to convince the market that he can get this company back to profitability. He cant quite achieve that yet. We have their numbers coming out tomorrow. He promises to get break even cash flow by the on the other hand this fiscal year and profitability at the ends of next fiscal year. Many feel there is going to be a loss that they are about to announce. Think of the buildup we had about apples iphone 6. We were talking about it for months. We knew exactly the date. People were already queuing. I dont think youll be getting the queues when they unveil this today. There are plenty of people. Some in this news room, some that we talked to that still miss their keyboards, love their back berries. Blackberries. Maybe they are in the market. They might well be. Out are a few startups there that you can buy clipon keyboard. Now after the break, our next guest says john chen may have curbed blackberrys troubles, but for how long . That is the key question. Welcome back. Youre watching the pulse live from bloombergs European Headquarters. Were right here in london. Were watching the currency markets. Euro dollar. Early on we had a number that was a little bit disappointing. Nrblely the currency went up and has since come back down. The market may be listening to what mario draghi has to say. E. C. B. Ident of the talking about the fed about whats happening at the bank of england. Nevertheless, euro dollar still in some peoples minds fairly elevated. The news out of countries like france, italy and spain is we would like to see the drumbeat pointing to italy with the euro. 1. 2843 may be a bit too strong for them. Lets move pofpble lets talk tech. Lest get to one of our top stories. Black ber blackberry is going to unveil a new smart phone with a square screen. It is targeting Business Users. Expert and analyst. Why is blackberry doing what it is doing . It has a square screen which feels big and clunky. You have a keyboard there. What are they saying to us about where they are going . I think they are trying to say blackberry remains contemporary. Of the anecdotal implications is people dont give up their blackberries until they dont function anymore and couldnt use them. In my experience, i cant remember a device that i kept upgrade. As time to is the keyboard a unique selling point . Very few of them these zrace them. They are all touch screens. Blackberry is going back to that. I think that is true. That is what the users we have spoken to what they have raised is the keyboard. They tend to like the retro design as well. I can imagine there is a market for that retro design. A lot of users like it and the idea that people would like to have one device but they are learning there are practical ttles that favor practicalities that favor having two devices. I used to be somebody who absolutely wanted one thing from the car y phone to pay bill. There is a lot of benefits actually having two separate devices so you can compartmentalize your life more than youre doing. That served blackberry very well. If we go back to what they are doing, chen has done a very good job. But at the moment, what were not clear about is it is like were looking at e. R. Center blackberry. You go in there. What has he done . Like he plucked in a dialysis machine while waiting if a transplant. The problem with transplants is it is still largely a temporary fix. That would suggest his structure is twofold. The other is he comes out and attached a pair of bionic hands to business which is great. That business would have a long way to go and be completely refreshed. I think he is getting it into a 5 billion it is now business. He is getting it into a shape where he has a fighting chance of growing it but in the end it will be in the shape that someone can buy. He is repositioning the business and looking for somebody to buy. I why would somebody buy it if there is a big enough market in business . Is there a significant enough niche here that there is an asset that you would want to own . The key here and this is a bit of an irony to the whole story. He has to succeed with getting this device into hospitals, government businesses businesses where revenues are fairly reliable and the Customer Base is significant. He gets into the security market, i think it is a legitimate position for him. Then it works and then he has got something that somebody would buy but i think the longterm outlook for blackberry, the scale, you have to say what happens to these big businesses, they end up getting bored. They dont tend to reemerge. Nokia was the exception when it changed the business product but in the end when it fell badly on tell co, it had i. P. It had a brilliant brand. The restructuring came too late. They could not get the devices out of the window. Black folkia never had the Specialist Operations that some would say blackberry has. The security is very, very strong. A focus on the enterprise sector that nokia never really delivered. Youre never going compete if you go further down market. Maybe blackberry goes the other way. Spends money on the high end of products. That is a different place to operate it. It is a different space but on bolt on eing somebody elses profile. Who would be a likely buyer of this kind of business . Players like microsoft, google, for example. Im just throwing things in the wind to make the point that it doesnt have to be a tell co or it manufacturer. Is it a you can selling point that is secure . Angela merkel has one of these things and she has a bit of an issue with the n. S. A. What she uses is a blackberry. Youre right about this. This is a key place where they could make themselves a very nice niche. They dont need to be more than four or five in the market space. That misses the point. Or six. Ve in specific niches they need to be one for security or two for security. They cant be three. They are not going to win that way. There is definitely a market for this. There are startup businesses that are making devices that are secure from the n. S. A. There is definitely a market for this. As consumers become more savvy, they will want these types of device actually. Actually i do care about my data been of the way it has used they will want more of this. To blackberry, if they cannot get the sales traction, the market may give up on them. So i dont know how long they have got left. It might be 3 4. Then it just doesnt look like to nokia story if they dont manage to make the turnaround. The probability of them going back to a fantastically Strong Company and not being acquired s quite low. Thank you very much indeed. Were going to take a break. Back in a couple of minutes. See you then. Welcome back. 26 minutes past the hour. 26 is not todays pulse . 50. Is todays the pulse number. Why . Thats how much the rockefeller Brothers Fund has pledged to sell. Part of glowing global initiative. He rockefeller funds director said the green energy is the future and he is committed to supporting the fight against Climate Change. Welcome back. Livee watching the pulse from bloombergs European Headquarters. Were here in london. Im guy johnson. They see are the Bloomberg Top headlines. Pimcos e. T. S. Being over whether it artificially inflated asset prices to boost returns. Pimco said it is cooperating with authorities and it believes its procedures are entirely appropriate. President obama is calling on World Leaders to strike a deal to combat Climate Change. More than 100 of them gathered in new york for the u. N. Summit. Obama told them that Global Warming is the issue that will define this century. The climate is changing faster than our efforts to address it. The alarm bells keep ringing. Our citizens keep marching. We cannot pretend we do not hear them. E have to answer the call. Massive amounts of supplies to needed in liberia, guinea control ebola. There may be one million cases by january. Liberias president spoke to bloomberg tv about what is going on. With the ssue commitment of the public, the pulation and the government, we want to contain ebola. Lets sort out what has been happening on the markets this morning. Jonathan ferro has more. Ftse 100 down by. 25 . The dax just off by. 2 . Euro dollar, a little drop off there at 1. 2851. That dropoff was on the back of that german Business Confidence data. Slips and slides for five straight months. It speaks to two things. Perhaps the need for more stimulus. Thats what a lot people are talking about now. Maybe those people that doubt the need of that in germmy. Maybe that ticks the box for them. Politically, i spoke to standard and nd poors this morning they talked about the anteeuropean part in germany. It has gained some significant momentum. What you see the that mean for the policies in the eurozone . Angela merkel has to turn away from the eurozone and talk about what is happening politically and the shift to the right in some regions. That is a big, big concern. 1 is the combreeled on the 10year. I think yield on the 10year. Speaking of politics. Im going to show you one stock. Air france. Up 1. 8 . No idea. When you get the transport minister saying what is strategy going to be like for this company, the company is out denying it. They need to expand it to survive, to flourish. The unions are on strike. The pilots are on strike. They dont want it to happen. What is going to happen to this company . Who rules corporate france . Businesses or politicians . When we talk about reforms, this is exactly what were speaking about, isnt it . It is. We need a solution within the next few hours. So well see the solution there. Who is pulling the strings. Jon ferro on the markets. Minutes to go until surveillance takes to the air waves. Tom kean is ever at the hell keene is ever at the helm. Just moments ago the dutch looking to commit four f16 fighters to the battle against Islamic States and headline speculation coming out of the u. K. , britain joining the coalition. We will speak with a former Supreme Commander of nato, wholl join us with tufts niversity. Of will join us with his wife with their book on charities. He is a liberal in america. A harsh critic. Well talk to him about the actions. Of course the backdrop of all of this is huge traffic jams in new york city as we see the United Nations meet. You just had on the nigerian president. That is a political backdrop. Well look at the markets as well. William janeway will join us as well. Well look at the effect of alba alley ba ba. Keene coming up on surveillance. The internet has almost doubled the amount it is seeking to raise. 1. 4 billion euros and could become one of germanys biggest Public Offerings this year. Lets talk more about this i. P. O. Now and its relevance en were talking about alibaba. Com. Rocket could be looking to compete with alibaba as they try to go into these international markets. They made an incredible splash. The evaluations are nowhere near. You take a looked how much they are trying to raise, their share offerings and values, 35year range. 3542. That is an implied vault. A pretty big company. One of the biggest if not the biggest tech i. P. O. S ever in germany. But it is still much stronger than alibaba and that is really the challenge for rocket. They incubate a lot of businesses that have been successful elsewhere. They take them internationally and try to scale them. Guy . And heres the thing. Is it a representation of the jer than german tech scene . The company is doing a me too model. What does it tell us about the wider picture . Look at their most famous example. Lando. Is it fair to say it is a clone os . Zapp probably not. They have done some different things. They have done something very difficult in how to sell and localize markets. Good authors steal. Bad authors plagiarize. Guy . I feel the same way about you as well. Hans nichols always has great little lines. You have to listen to hear them, but they are there. Im telling you. Hans, thanks very much indeed. Hans nichols joining us from berlin. Coming up, cutting down on my next guest says we need to fix Climate Change or the environment will fix the market. Welcome back. Youre watching the pulse. Were live on bloomberg television. Were chatting about whats happening in the environment and the changes that were beginning to see. President obama called on world to to strike the combat Climate Change. What are researchers doing to fight pollution . Caroline, there was a clear voice from the Business Community in new york. Youre right. Whether or not there is a publicity extrave ganzor whether they are trying to build on the momentum going on. They are committed to try and and reduce their own carbon emissions. Among them, we had many european voices taking to the stage. Shell, siemens, shell, unilever to name a few. A Company Whose very business is carbon. Oil. Shale. Carbon. They are committed to sharing, learning, best practices. They are committed to methane as well. The likes of b. G. Group. Clearly commitments coming in that respect, to methane. This is something the world bank has been fighting very hard, signing up now. Saying that Carbon Pricing is the way forward to basically price into the market what damage carbon does by tax or trading carbon emissions. Clearly we have some voices being added to that. Were going to charge 75 per ton of carbon and when were looking at investment opportunities, were applying 50 per ton to carbon. You also had nestle, 30 companies saying they support his way of carbon as well. Swiss re sage said in the decades said in the decades to come we want to review fossil fuels from production. Renewable energy for their production. Lots of businesses voicing. And Investment Managers saying they may shy away from investment in car lonheavy companies. Lets speak with man who helps businesses help the environment. Good morning. Nice to see you again. Good morning, guy. Just in terms of the background, how you spend your time working this industry. The bandwagon seems to be getting a little bit of momentum now when it comes to what happens in the green tech environment. It feels very important. I think one of the things that is missing from copenhagen a few meet ago, the last climate that was had, the politicians are saying we need more support for government. And businesses are saying we need stronger regulation. And i think whats happening this time which is very useful is all the different pears are doing that in advance of so that is politicians will feel they can move with permission from business and businesses will feel they have a reliable regular nation place. This meeting is taking place in paris next year. Yeah. This is the next of what it was. Were moving back into the kind of difficult negotiating environment but you feel the people around the country are looking at each other now whats happening in new york at the moment is building up to that moment. Everyone is aware of that. That is the next opportunity we have. In interpret s of avoiding major Climate Change probably the last opportunity we have. Getting their house in order. I think business what is beginning to happen in business, all businesses have an opportunity to save energy and to run better businesses and now i think some are trying to see whether they can make money from it. Ve us regulation and per mission to make money and bring on the green economy. Is that ringing more often at your company . It is. It is busy. Are Companies Getting more involved. They are making pledges and have to figure out how to make those work. Making sure the economies have the necessary to invest in this stuff. They need to do it at the Grassroots Level as well. I think it is happening all over the world. Encouraging businesses all over the world. The national governments. So everyone can play their part. The mayor of london is launching a challenge to londonbased businesses to save carbon. Over the world. Is the city level the right way of doing this . Bloomberg has talked about this as well. Yes. And it is that level rather government level that you can get the bigger bang for your buck . It feels like through the c40 that is going to be an important one. I think if cities are going to prove to be important. Businesses need to be able to make money. Citizens need to be able to get quality of life. With high quality. Is making money the right way of doing it or is it about saving money and is there a distinction between the two . I think it is about in the short term it is about profitability navend the long term, it is about the amente ability to operate. With what is going to happen, their access to raw materials. It could disappear. It could be a very painful change for them. If there are certain funds that are disinvesting from companies that are not making the right moves. From a guy who spends his time talking to companies about it, is it the right move . Shulled we be buying should we be buying more stock in these companies . How are we approaching the behavioral aspect of this . Those are the two approaches. The engage approach has been nrlsrble over the past two decades. Nrlsrble. It is money that talks. So disinvesting is the most powerful thing that investors can do for business. In businesses, the senior executives, they want to change the direction but dont feel they have the permissionor their investors. This is a really important move. They give them permission to do the things they know they want to do anyway. And to bring on the tuche. Nice to see you. Thank you very much. Those busy up, deals may not be as frequent as ou would hope. Find out how they could be about to kill happy hour. That is coming up after the break. Welcome back. Youre watching the pulse. Lets take the pulse of the currency markets. Interesting note from steve fe rro over at sanders talking about the cable rate. The pound crosses are all looking fairly rosy at the moment and now, you have seen cable join the fray. Looking robust and that cable is a trade you need to look at. Trading 1. 6402. Barely budging on the session today. 1. 5550 is what should be looking at. A little bit of head room still to come in the cable rate. Again. Watch this space. A lot of data out. A lot things moving around at the moment. What were seeing in the euro pays as well. Quite interesting too. Ets switch gears now. It is all about beer. Big data. It touches all of our lives. Information is everything when it comes to shopping, dating and ow beer. Watch this report from elliott gotkine. It is fascinating. There is an artor pulling the perfect pint. Now there is a science to go with it. Inside the walkin cooler where the beer kegs are scored, all the beer that passes through taps outside is being measured by these meters. The information is then transferred to a bot like this ready to be analyzed by the baroner and brewer. Using the systems has helped to cut waste and boost profits. The message at the beginning of the shift and tells us what to do. Take this beer from 9 00 to 10 00 and offer the second one at half price. 50 more profit. 70 more profit. Sometimes even 80 more profit. The Realtime Data and number crunching come courtesy of israeli startup know how many kegs were shipped out of the factory. We tell them how the beers were consumed and what hours, what days. What regions. By providing them with this data. They can leverage it to a better marketing method and sales method and monitor their beer quality. It can also throw up some insights. Some of the breers consumed when the bars are actually closed. Probably the owner or staff enjoying some beer. They are doing better on certain days of the week. A lot of beer is consumed in the earlier hours. With so much beer data now available, bar owners and brewers can be more targeted with their promotion. On the downside, they could end up killing happy hour. Maybe give you a few clues on how your night is progressing. Tech a big theme for the rest of the day. Caroline hyde is with us and hans nichols is also with us. Aroline, lets start with you. Blackberry news. It looks like a blackberry but squarer. A little squarer and bigger. It makes it much easier to analyze your excel documents. This is squarely targeted at the Business Community. This is the first flag ship unveiling under john chen since e started moving manufacturing of blackberry hardware and this all gets unveiled at 10 00 a. M. Eastern time. So hold on for that. We will also be speaking to john chen himself. An incredibly nice guy. I think this is the direction were going to see. Client, y realizes its the consumer, trying to make contact with businesses and security. Well look forward to seeing that later. Hans, obama speaking in a few hours at the u. N. General assembly. Normally this is about the challenges obama has and who he is going to meet and who he is going to shake hands with. In some ways today his challenge is more difficult. There are so many crisis afoot. What will his response be to Global Warming . Today he is going to tie up traffic on the entire east side of manhattan. This is this part of the broadcast i pretend to be a traffic reporter. Take the subway. We all know it. Guy . Because Everybody Loves the subway on that side of town as well. It is efficient and such a great way of getting from a to b. Hans, well leave it there. Thank you very much indeed. Hans nichols joining us from berlin. Were going to take you to new york now. Pulse spulls over for today. Over in new york, surveillance is gearing up. Well see you tomorrow. The british and dutch consider joining the coalition. This is Kurdish Forces fight Islamic State forces. President obama must break the back of the ebola epidemic. This as the c. D. C. Looks for exponential growth. And this bull market is awash in animal spirit. Alibaba adds fuel to the fire. Good morning, everyone. This is bloomberg surveillance. Were live from our World Headquarters in new york t. Is wednesday, september 24. Im tom keene. Joining me, scarlet fu and adam johnson. Adam, we could do a sixhour surveillance today, weve got that much news flow. Its incredible. Im glad you took the helicopter today to get through the traffic. It was the only way to get through the traffic. It was mindboggling yesterday to get around. German Business Confidence overnight lined more in forecasts. Here in the u. S. , we get the Weekly Mortgage application numbers. But new home sales at 10 00. And a new importance, i would suggest, on home sales. After the existing home sales took an unexpected drop in august too. I think weve seen three months of kind of