Welcome. Youre watching the pulse live from bloombergs European Headquarters. Were here in london. Im guy johnson. Im francine lacqua. It was a beat for barclays. An extra 750 Million Pounds were set aside for the currency probe. Anthony jenkins spokes to us first. This comes back to how do you reshape a beast . Do you cut off the legs . Do you cut off the head . What do you do . Jenkins is trying to put his stamp on this bank. He is dealing with expenses. He is dealing with legacy issues. When it comes to Foreign Exchange, that is a perennial issue. He didnt settle before christmas where he would have got a discount for doing so with a number of regulators. My question is should you gone with the rest of the crowd and taken that hit a little bit earlier. Did he make a mistake . He was quite optimistic though on the overall performance. We are required to provide what we can reasonably estimate at this time. I cant completely say that will be the end of the Foreign Exchange version, though because the discussions are still ongoing with a number of the authorities. 1. 25 billion pounds. Thats what the provisions are so far. R. B. S. Settled. Before christmas. They made a provision of 750 billion pounds. Hsbc. You begin to see is shape of why we focused on that. You still havent settled and you still havent done a deal and payment protection insurance, another 200 Million Pounds in provisioning there. That takes the bank up to 1. 1 billion pounds. The plan is definitely working. I guess inside the Investment Bank it is. Costs are down. Bonuses are down. There is the issue of these fines. What is the market paying attention to when you look at the Investment Bank . What is the key metric we need to focus on . I reread everything post jenkins. Return on equity after the Investment Bank, for 2014 came in at the princely sum of 2. 7 . The benchmark they set this time last year for the whole core business was a target of 12 by 2016. The rest of his businesses are doing well. Lets be fair and balanced in what we say. The the core of what they are doing at barclays. Barclay card. Africa hitting those double digit level offense core return. The investment level, 2. 7 . How do you get from 2. 7 to 12 . That is the issue. There are a few other things you to do to jump from 2. 7 to 12 . Take a listen. Specifically on the Investment Bank if you look at our position for example in thee logic tables. We you look at our progress in the equities business. We have done well there. You look at macros the way we have refocused our macro business. A number of underlying areas in Investment Banks are performing very well. It is so passe. It is all about declines. Thats how i would sum it up. He is reshaping the Investment Bank. He is matching clients on one side to clients on the other side and not carry too much inventory. Heavy bonds. Trying to reshape and recrop what it is they do within the Investment Bank. Im not a mathematician but it takes heck of a job to get from 2. 7 up to 12 and they said they were well ahead in the First Quarter and they are not planning any further job cuts as it stands. Thank you. The very latest on barclays. The worlds currency is focused on general eve ive today. Bloomberg is there as well. Geneva today. Our man on the ground our petrol head of the day, hans nichols. Who have you spoken to so far . Well, with spoke to a lot of c. E. O. S, guy. Ill tell you who i havent spoken to. Some of the scantily clad models draped over some of the automobiles here. I cant find a reason to approach them. Were going to keep this clean because it is a family program. Were going to talk about the russian market and currency exchange. There are a lot of things on peoples minds here. What is going to happen with the russian model . I asked him a question on russia and he didnt seem overly confident. We saw the markets slow. It dropped from 2013 to 2014. I have to say at the moment the market is holding up but i think some of that is pept up demand and pricing hasnt moved as fast it is a ruble is devalued. People are still buying automobiles. The longer it goes on then clearly i think the more difficulty will come into the marketplace. I hope there is a political solution and the market can turn relatively quickly. Apple and google are going to be entering into the auto market. Clearly everyone is talking about it. They are bracing for it. I asked the c. E. O. Of volkswagen. He didnt necessarily say he was worried but said he didnt think they would be able to scale that quickly if they ended up building multiple engines. These two Companies Plan to produce electric vehicles they could go fast. If they intend to make a lot of engines, it will become more difficult for them. At the same time to, master the physics of automotives is not so easy. The other big topic here luxury, just what is happening in the luxury space . Earlier i was in a rollsroyce. I was not allowed to go in. It had silk seats. It was already sold. I couldnt get a confirmation on whether or not it was more than 2 Million Euros but aide feeling it was a pretty expensive car. I offered to sit in the front seat because they have leather there. The chauffeur gets leather. The passenger gets silk. I could listen to your monologue all day. If youre in doubt of what to ask any person at that car show via a model or participant, go for the swiss franc. I bet they will have an answer. Thats a question you would ask the models . I would say where do you live and is it a net positive now that the swiss franc has gone up by a lot . There you go hans. Keeping it real. That is the financial genius that is francine lacqua. Walk up to a model and say what do you think about the Foreign Exchange . There you go. The producers are telling us we dont have time to banter with hans. Well go back to him a little bit later. Plenty of terrific traffic coming from geneva. Aston martin coming up later. The other big conference in barcelona. A mobile World Congress. Caroline hyde is there for us. What is the latest . Yeah, francine. We just had a great interview. Consolidation is such a key them here in barcelona. We just sat down with the chief executive. He has just struck the biggest deal in the chip industry in nine years. 12 billion. There could be more to come. Have a listen. Were not done. This gives us the ability to rreally create a strong foundation. We also just bought a blue tooth Energy Company in china a few weeks ago. It gave us a connectivity standard that was required. Well be active in doing the things that we think will put us in the best position possible to really win in the marketplace. This is such a growing space. Some 50 billion items are going to be connected in the next decade or so and chips are where it is at and to do that, connect your oven, your home devices. These are the players that are going to win throughout all of this. Also were going to be talking consolidation with orange. Bele sitting down with the c. E. O. To talk about the potential an exchange of views. We want to hear from the horses mouth. Are that any discussions to team up with Telecom Italia . Let me pick up. What about the smart phone makers . Youre going to be talking to lenovo. What is the key question there . Key question is can you become number one in china . Lenovo chief operating officer who were going to be speaking to. Well be talking really about their efforts to really build themselves up in china. They bought motorola mobility. They were the number one p. C. Maker in the world and now they are the number three smart phone maker in the world. Can they become number one . Can they dominate china . Can they take on the likesor xiaomi, the new kid on the block . How lo l you build your presence . They are going to be selling online. They are building a new line. We want to know how they are going steal market share in china and the rest of the world. Also of course having some key u. S. Guests later today. Key among them, tom wheeler, the head u. S. Regulator for telecom stays. Space. We will be hearing from tom wheeler a little bit later. 1 45 u. K. Time. For that i hand things back to you. All right, caroline. Thank you so much. Caroline hyde there. Well have more from europes biggest tech event the pulse. Coming up in the next hour, well be joined by the orange c. E. O. Plus james bonds car maker of choice. We speak to the new c. E. O. Of aston martin. Randy palmer in his first interview of the day. And we tackle the geneva mobile show and World Congress. What is more important to you . Your car or phone . I would like to add a caveat . Which one are you more emotionally attached to . Let us know. What about you . Probably my phone. Only because i dont drive a particularly exciting car. At guy johnson tv and at flacqua. Were back in two. Welcome back. Now lets go back to barcelona and the mobile World Congress. Caroline hyde is standing by for an exclusive interview. Caroline . That man is bob were talking music and comedy. Were talking Viacom International media network. Talk to me about what youre launching today because you going front and Center Mobile in terms of some offerings. Particularly mtv. Mobile is an important area of activity for viacom. You look at smart phones and 3g and 4 g networks. Were seeing them as the largest source of our internet track. Come through mobile. Expansion through the app world as well. We see that as an sbreg really a part integral part. Mtd is designed to be used with our mobile offering. It is useded in germany, switzerland and romania. Addition to having voice and data access, you get access to mtv content. Gets you access to 1,500 hours. It is bundled into your mobile service. It is a different service. For example in switzerland, we have about a 3 share of all mobile subscrishese. We do it with telefonica in romania. We are about to make play available in those markets through the relevant app stores. Will that eat into the sales of mobile . It is a partnership where were doing marketing. Were tied in with the operator. Putting in the app store is a bit of an experiment. You have to try different things. Were trying different things. Were going to see where it works in the app stores. We had some research that said some were not mobile subscribers but would like to get the app. Second one were talking about is a nickelodeon derivative product for preschoolers. It is actually called noggin. It is an example of how we differentiate between Pay Television and mobile. Nickelodeon is one of the leading kids brands all over the world. I was in india last week. It is the number one kids network in india. A very successful product. At the same time we have a huge library of programminging no longer on nick nickelodeon air. Why not access like an entry level product. Our colleagues in the u. S. Announced it last week. It is launching in the u. S. In march. How much is that an actual hack. There seemed to be a nickelodeon available that was a pirate. And wasnt being run by you. How much does that stop other people using your content . There is a lot of piracy. That is something that content owners and by the way governments have a vested interest in continuing to do deal with. We do a lot of work battling pyre spism part of that is on a legitimate basis. The noggin app will be part of that. Well do some of it with direct consumers and some countries were going to have traditional operators. Tv everywhere yrning it is important to this piracy question. People want access to shows they love brands they love but they want on their tablets. It might be might be on their living room couch. They wanted a tablet. How much of your content is being viewed on mobile . It is not so much rather than. Were seeing tremendous con sugs assumption. One of the big issues is lack of good measurement. That is one of the things industry is working on. It makes sense for all parties involved. The distributor, we say what do they care . They care. They are working for a local ad business. We have an imperfect view. But i can tell you by the demand from certainly our traditional pay tv operators who are interested in growing a nickelodeon bundle. We launched a new product in france last month. We launched new nickelodeon services in the middle northeast february which are in arabic originated in dubai. We launched it late last year in africa. So, you know, we are continuing to support that platform as well. We see a lot of demands on the nontraditional side. For example, the chinese market. We did a deal about 12 months ago that went from roughly 400 Million People access to nickelodeon in mandarin on demand. We got some other deals that we asked for on demand space. There is really, youre seeing usage across platforms. Were focused on preserving our partnership with pay tv operators. Multily looking for ways to grow through products like noggin. One product were talking about this week is mtv tracks. It is a new type of music service. It is not like a spotify where anything you want you can listen to. This harkens back the day of Music Discovery like mtv videos. Tracks are constantly changing that goes to your smart phone so you can see what is new and different. It is now being converted for about a buck a week. Well roll it out from there. Thank you so much for joining us. We could speak for so much longer. Great to see all the developments youre making with all of your brands mobile, tablet. It seems to be the place to get your content. All about these tv brands getting into mobile and showing that we can consume whoever we are on the move. That was of course the c. E. O. And president of Viacom International network. Back to you in the studio. Thank you caroline hyde. Well be back at the mobile World Congress a little bit later on. Well be joined by the orange c. E. O. For an exclusive interview at 10e a. M. U. K. Time. Stay with us for that interview coming up right here on the pulse. Welcome back. Time now for a check of bloombergs top stories. Japan, abe has become the latest with allegations of financial impro pryity. Abe will look into the accusations. A top e. U. Official warned that greece might need a third bailout within months. He said markets might not want to lend to greece when its Current Program ends in june. They will have to meet their requirements of the Current Program and see what Market Conditions dictate. The aussie dollar the bank of australia held its overnight cash rate. Markets priced in a 50 chance of a reduction. The governor is concerned that lower rates might fuel a rampant Real Estate Market particularly in sydney. Coming up, how to end the race in europe. Well talk to peugeots c. E. O. On why more cars are being sold in china. That brings us to our twitter question of the day. What is more important your mobile phone or car . Welcome back to the pulse live from bloombergs European Headquarters here in london. Im francine lacqua. Im guy gisme these are the Bloomberg Top headlines. Barclays fullyear profit jumped 12 . They set aside an extra 750 Million Pounds for a global probe. Anthony jenkins said he was committed to improving the banks return on eck philadelphia im absolutely clear that we will do whatever is necessary to get that into our medium term target range, 12 through the cycle. Google says it plans to offer wireless mobile phone services on a small scale in the United States. They also announced plans to law firm solar powered planes to bring wireless web access to areas that are unconnected in the world. The u. S. Comedy show saturday night live is heading to china. They will start a chinese version in partnership with Online Search engine and video streaming sites. The deal will seek comedians from across china hired for the show which will feature live music and sketch copped comedy. March is the time of year to discuss the companys economic and Political Goals for the years ahead. It is also a time they can be confused with all the acronyms sprinkled across the news. Every year in march chinas political elite gather for what means two meetings. The first is the cppcc which stands for the chidse chinese peoples political consultant conference. It is an Advisory Group made up of delegates from different affiliations. They are there to represent the multitude of interests within the greater chinese population. Second is the npc. Chinas legislative body which serves a similar fwunks some major differences to congress or parliament. The output of these once a year sessions will be a work report that spells out chinas political and economic direction for the year ahead. Ok. So what then the cpc and where does it come in it stands for the communist party of china, the ruling party. In other words, this is the group that meets every november to determine what gets announced in march. Hope that helps. Ok. A bit of breaking news. Came back a few minutes ago before we played that package. I want to take you through the p. M. I. Data. Much better than anticipated. 60. 1 rer us is 59. 1 in january. 58. 3 and 59. 8. A big beat on that number. Coming up, lenovo challenges in china. How do they plan to end the Worlds Largest smart phone market . That is coming up next. Welcome back. You watching the pulse live from bloombergs london headquarters. We havent talked about the markets very much this morning. Lets change that right now. A number of stocks out with their numbers this morning. Glencore out first thing this morning as well. Lets have a look at the stock price as we peek. This morning it came out, it should be down from 2 . The annual net profit dropped 7 because of resource prices. We have been looking at the price for copper and materials. It has been going down and that had an impact on glencores last quarter. That stock is down from 1. 5 . It is interesting to talk about the fact that many are expecting in terms of cash. They are being a little bit more cautious on that front. The next quarter or the next half. They are doing it on a halfyear basis is going to be something we get next time around. Lets have a look at greece. No barclays. There you go. Bar clasteclaze down. The i bank is probably the issue here. Elsewhere performing well. Credit cards performing well. Africa performing very well. The Investment Bank is where the problem is it seems. Its return on equity is very poor. It goes back up to around 10 . It is around 2 . They are cutting bonuses and costs. That remains the focus. Can they turn that business around . How quickly can jenkins do it . Lets go out to hans nichols. He is at the Geneva Motor Show with a great guest standing by. Over to you. The c. E. O. Of peugeot. Thank you very much for joining us. You have now been on the job for one year. What have you learned . Well, i learned what i get at the beginning, which is the potential of the company which is the reality. Through our 2014 results we are in a good way to implement our turnaround plan our back in the race plan. We are at two and are focused of achieving the objective of our turnaround plan. When we look at the cars, the new version of the 208. You dont have any new models here. How are you going to gain market share if youre not introducing new models . Several things. First we need to recognize that we have a very young range of cars. Below three years of average age. We introduced many new cars last year. We are entering 2015 with a young rage of products so we feel good about that. As you see here with this fantastic new 208, we are introducing highly efficient with a high level of technology, which one which is a world premiere, we have a three liter of fuel consumption for every 100 driven it is best in show. I want your thoughts on russia and your tieup with mitsubishi. Might that change given the difficulties in russia . No, were trying to hold on. We consider that situation should improve at one point or another. Tuscaloosa we expect it to improve. We consider strategicically we need to stay in russia. We are trying to stop the bleeding because we are losing money there. We are reducing the bleeding. We consider that strategicically we need to be there on the marketing and manufacturing side. We cooperate with ourmileanhour mitsubishi to make sure were ready for the rebound when things get better. Do you a time horizon when the rebound might happen . We are now preparing the things that we would like to invest but of course we also want to invest with some visibility, all the discussion going on will deliver some results and a good sense an additional mindset will be restored. Another partnership of yours, how is it going . Any talk of maybe having a partnership with them in india . It is highly strategic. It is delivering great results. In 2014, in china, we grew 32 in volume for a market that grew 10 . Our growth was three times the market. This is the result of the work we are knowing our joint venture with china. It is delivering great results. In 2014 we so you would sold 734,000 cars. Our growth is profitable and tremendous. We are very happy and of course we are working on other plans to invest outside of china with our partner if the opportunities arrive. Give me a hint on what countries that might be . . Mostly on southeast asia. You wanted to see the European Central bank do more to stimulate demand. Have they done enough . It is fact that we see the weakening euro is helping us. We have a strong European Manufacturing base. We are having very hard in improving the logistics and the manufacturing First Quarter si of our plans. We have efficiency of our plans. We think we can do more. We think we have more ideas that we can implement and be more efficient. A system that we continue to improve from one side and from the other side, great cars and a low euro we can export more. The more the euro weakens, the better we are. Your fortunes are tied to the fortunes of europe as a whole. What sort of risks do you see happening out there on the horizon if greece leaves the eurozone . I would just highlight the fact that we have two legs. One european leg and one chinese leg. Hopefully because over the size of our business in china, which is going to top 1 million car sales very soon. We consider we are no longer completely dependent on europe. But at the same time what we also see is that we have so many things that we can improve on european business, mostly on the cost side. The profitability of europe is improving at the same time the business is growing in china. All of this is a nice competition between the two regions and we are not trying to fix our business in latin america. Hopefully we will have a third leg which is more stable than two legs. One final question for you. You talk about competition. You may get new competitors in the field. Apple, potentially google. Cause for concern . No, i dont think so. Those companies are very wise. They will soon recognize this is a very complex with a huge cost of entry into the industry. We have working on our side in terms of making sure the connectivity between our cars and the internet world is perfect. We continue moving that direction and it will bring for our customers the services they are looking for. I dont see it as a concern. I think it is perhaps an appetite they have but they will soon discover this industry is highly complex and you need to have tons of expertise. That was a confident answer to a difficult question. We will throw it back to london with that, guys. Well have more from the auto thow show throughout the morning. Francine, guy . As we leave geneva, were about to go to barcelona. As we make that transition, we should probably talk about the question of the day. Yeah, it is this one. What is more important to you . Is it your car or is it your phone . You can tweet us at guy johnson tv and flacqua. Lets head back now to europes biggest tech event, the mobile tech conference. Caroline . Im joined by another great guest. This time it is the number one p. C. Maker in the world but the number three smart phone maker in the world. Lenovo. Thank you very much for fitting us into your tight schedule. Youre already the third biggest phone when it comes to smart phones. Where do you want to be . The beginning of the end of october it is first time we are here together with motorola. Where we want to be i think we see big opportunities. Big in merging markets. I look at western europe, some other markets. Latin america where they are number one in brazil. We can see how we can challenge number two and then number one. And western europe, where are the Growth Opportunities . Western europe, they are present in a few countries, right now, i think we need to build up all the other countries and come back strongly to western europe. What do you want for share at the moment . Very low digit. But you a target that youre aiming for . We only need to look at how to go to double digit, the market share. Talk to me about china. Youre now trying to beef up the likes of xiaomi. Do you think pass them . China is quite interesting. We see a shift. We announced that we build up this new company. We see a great opportunity. Not only on smart phone but on different devices. We need some time of course. I think the opportunity is there and we need a good balance between traditional china and have you got people knocking on your door already . We have something. We cannot talk about it. Tell me about what devices youre bringing out at the moment . What other connected device do you want to be dominating . Mobile device. Smart phones. Tablets and other mobile devices. Some we are working on. Why not . Mobile is this a way the p. C. Market . Where do you see the p. C. Market going . P. C. We are number one and we see great opportunities for growth. Not because the market is growing. Because some of the players are leaving. The market i think is coming back at least into a stable situation. We need to the new announcement. What we have seen today is coming back. I think we will see a better balance between tablet and p. C. Is the tablet slowing down because of the rise of the last i think it is a combination. The largest smart phone, six inches, even bigger. Big opportunities, 1011 inches. On the other side, people also start to realize the tablet is a very good device. If you want to generate or create a good p. C. Tell me about your brand as well. You have come under a bit of stress over the past couple of weeks. The issue of having software installed in your p. C. s which means you open to hacking and then you had your own website hacked. How are you rebuilding . I think with the new announcement last friday we are going for a very much cleaner deleting some security stuff and some other things. I think we are going back to and it is good to be from the User Experience point of view. A much better position in the future. Im going to put you on the spot. When do you want to be the number one player in the world . When can you achieve it . When is realistic . On p. C. . We are already there. In smart phones. On smart phone, i think we see opportunities to challenge for number two. Number three i think it is difficult to say when. We are still even below double digits. I think we need to shoot for double digit market share and continue growth from there. Who do you see as your biggest competitor . Is it samsung because they have so many different products . Probably the only qualified player left in the near future. Smart phone, still a big number of players. You start to see consolidation from a challenging point of view. The top two. Lets say the top five. Our major competitors. Would you buy anyone else . Would you be looking for more acquisitions . Today we are business to integrate from i. B. M. On the other side. We have something to do for the next 1224 months. This market is always were always open to considerations. I think for the time being we need to make sure we integrated these two companies and continue to grow from where we are today. It has been wonderful speaking to you. Chief operating officer of lenovo. He tells me he spends most of his life in the sky. All of these executives jetting about as they fly in and out. Consolidation up but not for another 1224 months. Back to you guys. Thank you so much. Caroline hyde there with the latest from lenovo from the mobile world conference. We tried all kinds of things to make it break. We even hit it with a hammer. What was the result when we come back. Welcome back now. Almost everybody has cracked the screen on their smart phone at some point. A Japanese Company is bringing their latest smart phone to europe. We decided to see if we could break its. Nearly everyone has a smart phone these days and everyone has probably broken their screen at one point. But that is where the this phone comes in. The Japanese Company has released the torque. A phone it describes as rugget. Before we completely rugged. Before we completely attempt to destroy this phone, lets have a look at its face. It is a fairly thick phone for the competition but it is fairly standard for a device like this. Designed to fall out of o lazies and underneath speeding trucks. Phone can withstand being underwater. Oh ok. Well, that did more damage to our equipment than our equipment did to the phone. There is one test left. Good god thats amazing could be the battery has been displaced. Im not sure how you would check. Im not really sure at all. Not working. The screen survived but the phone appears to have died a bitter death in the hammer versus phone battle. The end. All right. Thats what i need. Now on radio the first word is next. For tv, the second hour of the pulse. We have the orange c. E. O. And then we talk to the c. E. O. Of aston martin. This is the guy who makes the cars for james bond. Were pretty excited. Were back in two. Francine barclays beats. A 12 jump in profit as it takes a hit from the global currency pro. We spoke to anthony jenkins. Guy we speak to the orange ceo. Europes biggest tech event. Francine live from geneva with the head of aston martin and other car executives. Guy good morning to our viewers in europe, good evening those in asia and a very warm welcome to those just waking up in the u. S. Im guy johnson. Francine im francine lacqua. This is the pulse, live from london. Guy barclays fullyear profit jumped 12 as a bank set aside money for a currency probe. Manus, you talked to anthony jenkins. What did he say about Foreign Exchange . Manus it is not over yet. 750 Million Pounds in the headlines. The money theyve set aside up t o 1. 25 billion pounds. They did not settle with the rest of the herd before christmas with regulators in the u. K. , switzerland and the u. S. I sense a quiet optimism on closure. We are required to provide for what we can reasonably estimate at this time, i cannot say that will be the end of the provision because discussions are ongoing with authorities. Manus hes hoping to get to the end. They rolled the dice, they did not go with the rest of the banks. If you went early you what ive had a 30 discount. Rbs made a provision for 750 Million Pounds, they settled for 630 Million Pounds. They took a hit on ppi, payment protection. I think its an era in which jenkins is reducing compensation and trying to reshape the bank. It would be disingenuous to say there was not a counter side. It would be disingenuous to say the bank is not improving units. At core units. Francine it is the Investment Bank that has caused headaches. Manus hes reshaping bob diamonds legacy. An Investment Bank with that grew three times the size in terms of employees. The Investment Bank at cost fell. Pretax profit fell by 32 . When it comes to the Investment Bank, jenkins was trying to make the point that we are ahead in certain parts of the business. Specifically on the Investment Bank, if you look at our position in the logic tables weve advanced in europe. If you look at macros weve performed well. There are underlying areas where they are performing very well. Manus he did say everybody has got to live up to his targets he set last year, a return on equity of 12 by 2016. Return on equity at the Investment Bank last year was 2. 7 . To get to 12 is a journey. The question he did not want to talk about was are you going to do ubs, pullback from certain businesses. Francine manus cranny thank you. Guy the mobile World Congress in barcelona. Caroline hyde has an exclusive interview. Caroline im joined by the chief executive of orange, stefan richart. I will kick off with some comments in the french press. Got everyone excited about orange coming together with Telecom Italia. What did you say. Are you in talks with Telecom Italia . No. I tried to explain this clearly yesterday. Among all the ceos of european telcos we meet regularly and exchange views on europe. Everyone knows there is a need for consolidation and convergence. Thats it, there is no discussion, no talks between us. Telecom italia has its own strategic roadmap. We have our plan. We are in Nine Countries in europe and in africa. In the future i think that we probably share the view that in europe we will have to consolidate the industry. Because the industry is too fragmented. There are more than 160 mobile operators in europe. Too much. We need to invest heavily in the network. There is no project, no agenda regarding Telecom Italia and orange. Caroline would you want to increase presence in italy . Which countries in europe . Mr. Richard we are not in italy. We are in nine european countries. We have no plans to enter the italian market. Neither through an existing operator nor in anything else. You have 4 big paneuropean operators. You have a few significant operators but not paneuropean. Telecom italia is among them. Were openminded people. We do believe that one day we will have a Single Market in europe. And that will foster the creation of paneuropean players. I think orange will be one of them because we are today. Telecom italia will probably have to answer the question what do they want to be in europe . Only in italy or part of a global alliance. It is something we will have to see in the future. Caroline which countries do you want to build in . Mr. Richard we want to be a top player in spain. Caroline more acquisitions in spain . Mr. Richard no, today with the acquisition we are creating a very Exciting Company with a very competitive convergence offer. We are in france. We are in poland with orange polska. Were in belgium, romania and slovakia. Those are the main markets where we want to grow and want to be convergent. We believe that in europe the future is about convergence. Caroline you will be buying more assets, more broadband and the countries you are in . Mr. Richard we will try to be convergent. Either by investing in fixed networks ourselves like what we did in spain in a joint venture with vodafone. We might have the same kind of project in the countries. Or when theres an opportunity by buying fixed assets. Caroline you say you are openminded, what about the regulators . Are they helping allow consolidation in europe . Mr. Richard what we can see is that european authorities have little changed the way they are talking about the industry. They seem to be more realistic about the need for consolidation. Look at what happened in germany, ireland and the u. K. Things are moving. It takes a lot of time. In my view, the antitrust process in europe is very long. One year to get an approval. Its too much. Were a fastchanging industry with technology alltime. It takes too long. So i think that everyone is aware that europe has to consolidate industries. Its too difficult and we have a lot to explain. Especially by saying the purpose is not to increase prices for consumer. Everyone thinks that the industry wants to consolidate to increase prices. This is not the problem. He problem is to invest to make the real digital europe that we need. Caroline you have to invest. I was speaking to Deutsche Telekoms chief executive. What about a level Playing Field for internet providers . They, too, are communications providers. Do you agree that there should be more regulation for facebook and google . mr. Richard i agree that we need a level Playing Field and europe. The same regulations. Im not claiming for more regulations. Im claiming for the same constraints for all the players of the digital world. We should not think in terms of telecoms, Internet Service companies. Were all communication providers. In my view, we should have the same rules. The fact is that it is not the case today. Clearly myselfa and the industry we are claiming for a level Playing Field in terms of regulation and also in terms of slack. Caroline lets talk about emerging markets. Youve been looking at africa. You are carving out that business. Have you got any partners yet . Mr. Richard in africa we are one of the top players. Were in 19 countries and have recently registered the 100 millionth new customer. We are a big player in africa. We continue to extend in africa. Its a continent where theres Economic Growth demographic growth incredible. 2 billion people in africa in 20 years time. It is the strength of orange in africa. We intend to grow organically mainly. If there are opportunities to grow by consolidating or operating from assets in countries we are not, we will see. Caroline any countries you would like to be in . Mr. Richard we would like to focus on francophone countries. From a cultural point of view and a management point of view its the best area. Theres a lot to do in this part of africa, the western part. Caroline why did you not remain a big shareholder in bt any bt and 3 . Mr. Richard we are in business, digital come Deutsche Telekom has its own agenda. We have a lot of projects in africa. We are the process of acquiring another company. I explained that my preference was to get more cash. I really wanted to have exposure to bt. I believe that the bt combination is going to create value. Thats why orange took more cash and less shares. I respect her to talk hims i respect thee Deutsche Telekom view. It is not our view, we went to put resources in africa and europe. Caroline in terms of growth in africa, divestment. There was talk of you selling off fun phone towers in spain. Mr. Richard we study that but we are not in the process of doing it. We are committed to a sharing agreement with vodafone, which is doing very well. It is the correct answer to the optimization of the infrastructure in this country. No plans to sell towers in spain. It is something we do in africa like most players, but not europe. Caroline wonderful speaking to you so candidly. Talking us through orange in the future. The chief executive of orange speaking to us. Talking more consolidation europe and a little but in africa. Francine great interview. Nontalks with Telecom Italia and confirming other plans. Guy we leave barcelona. Coming up, we head to the Geneva Motor Show. Which is more important to you . Your phone or your car. Ive had plenty of people saying their car. Tweet us. Ive had people saying their car. Francine ive had people saying their phone. Tweet us. guyjohnsontv flacqua. Were back in a couple minutes. Not sure if we see russia being such a strong market as it had been last year. On the other side, the United States is an excellent market. The middle east is an shape. You should ever put your eggs in one basket. Francine that was the rollsroyce ceo on russia. Funny more from the geneva auto show. The ceo of aston martin will join us. Im sure youre excited. Guy some Pretty Amazing cars. The possibility of an suv. Could you see bond in an suv . One of the key questions. An event that a bank of england Governor Carney is speaking out. Speaking about the currency probe. Getting that coming through at the moment. Asking the tough questions. As we get more news, we will continue to bring it to you. Francine we will be monitoring that live. We are back in a couple minutes. Francine welcome back. Lets go back to switzerland. Guy hans nichols, talking to aston martin. Over to you. Hans thank you. Im joined by andy palmer, the ceo of aston martin. Weve got a concept car behind me. Mr. Palmer the future james bond. The future of the sports car. The car that will appeal to luxury customers but also younger customers. In particular, female customers. What would that customer like and a sports car . What they would like is a beautiful sports car, which is everything aston martin is. Make it accessible, which is why you get a crossover. Db sports car, david brown, x, crossover. Something much more appealing. Particularly to female customers of the brand. Guy or hans or james bond. Would james bond be caught dead in a minivan . Mr. Palmer would this is not a minivan. Its a beautiful sports car. Hans it is a little in between. Eventually it will have five doors with a hatch. Mr. Palmer yes. It will appeal to a market that is more accessible. Today we have the aston martin model that is more traditional. This is aimed at the next few generations, generation y, generation c in asia and south america, and to the female customer. In the 102 years aston martin has existed, weve made 70,000 cars in total. Only 3500 of those were ever sold to females. Only 2000 were ever sold in the brics. When you think about the future this is important. Hans i will not ask you for the crash rate. We will not get into trouble like that. We had the gt3. What is this thing about the direction you are taking the brent . The brand . Mr. Palmer it is about making sure the second century of aston martin, we do not ever want to go bankrupt again. A total plan includes three pillars to the strategy. Sports cars a renewal of all sports cars. Sports cars will be limited to 7000 units maximum. Then youve got the launch of the lagonda, the super sports sedan. Then you have the crossover, so important for us in the future. One key part missing is the collectibles. Aston martin has always been about collectible cars. Last week a db5 convertible sold for 2 million. How do we create collectibles in the future . There stands in the vintage gt3 special edition, those are the future collectibles. Hans if you do new models, what sort of funds are you going to need to raise . How are you going to do it . Mr. Palmer we have an agreement with shareholders. The plan is, we know the total cost of that. Theyve agreed to let and they are out there basically raising the capital to allow us to bring discards to market. There is nothing conceptual and hear about the Business Model itself. We are going to do this. Hans when you talk about the bugatti, the bentleys getting into the suv space. Ill accept that this is a cross over. Are you ced suv territorying . Mr. Palmer perhaps, but that is not where we want to go. We see ourselves attracting people that are connoisseurs. We want to extend that appeal to asia, south america, middle east and female customers. They will always be connoisseurs. Hans you will always have the confidence of a ceo who knows he has something special. I think i found your christmas present. You cannot get groceries and a car like this. You can only do something fun and a little dangerous. Francine that is just what guy does. He never does groceries. Guy fast and dangerous. Francine who is financing that . Hans nichols present to you. Guy he is buying it for my christmas present. Francine great interview. Guy like working on this show fast and dangerous. Glencore beat on trading. We walk you through the numbers when we come back. Hes out there. Theres a guy out there whose making a name for himself in a sport where your name and maybe a number are what define you. Somewhere in that pack is a driver that can intimidate the intimidator. A guy that can take the king 7 and make it 8. Heck. Maybe even 9. Make no mistake about it. Theyre out there. I guarantee it. Welcome to the Nascar Xfinity series. Francine look into the pulse. Live life from bloombergs European Headquarters in london. Im francine lacqua. Guy im gone johnson. Francine barclays beat estimates. The bank set aside 750 Million Pounds for the settlement of the Global Program manipulation of currency markets. Anthony jenkins told bloomberg he was committed to improving return on equity. Mr. Jenkins we will do what is necessary to get that return into our mediumterm range, 12 through the cycle. Guy google says it plans to offer mobile phone services on a small scale in the u. S. Announcing plans to launch solar power planes in the coming months to bring wireless access to unconnected areas elsewhere in the world. Francine legendary u. S. Comedy show saturday night live heading to china. The show celebrated its 40th anniversary two weeks ago i will start a chinese version. Media will seek comedians the deal will seek comedians hired for the show, which will feature live music and comedy. Francine i wonder whether we can see it here. Guy lets do some stand up. Jonathan ferro. Jonathan we will talk after the break. Looking at equity markets. The dax up. Some data out of germany. Retail sales really strong out of germany for january, up 2. 9 month on month. We were looking for less than. 5 . Ftse stronger, up. 2 . In london, pmi north of 60, 60. 1, really strong. Decent data not just for the euros and but for the u. K. Ftse 100 held back by barclays numbers. Provisions dragging down barclays and makes up 2 of the ftse. Bond market is the same story. Yields go lower, equities go higher and we see yields lower. Austria did something special. Auction fiveyear debt in the primary markets for the first time with a negative yield. In secondary markets, austrian debt five years with a negative yield. Forget germany, everyone is doing it. 10 year italy meets spain. 1. 34 on the italian 10 year. Pretty much the same on the spanish 10 year. The start of the year, the spread was 25 basis points. Why . Spanish politics. And little bit more stable in italy when you compare politics. Fx market 17 Central Banks eased Monetary Policy this year. The headline, the aussie dollar goes higher. Up. 5 against every single major currency. Francine thank you Jonathan Ferro with the latest on currencies. In 25 minutes surveillance. What are we looking at . Tom economics, finance and investment with peter fisher blackrock. We speak about a negative rate regime for full faith and credit. You know about the negative rates in switzerland among many other nations. Peter on the new low rates for corporate paper. We talk about making next to nothing on corporate bonds. Brian will join us on equity markets. Well look at low volatility across surveillance. As Prime Minister netanyahu speaks to a Republican House and a Republican Senate we will speak to peter of aei. He was a rockefeller acolyte years ago working with president reagan. We will talk to peter about the greeting the Prime Minister will get on capitol hill. Francine looking forward to the show. Surveillance 25 minutes from now. Guy glencore reported a profit beat. Shares in the lower. Lets find out whats going on. Jesse reisner joins us. Put together. Jesse the backdrop clearly is depressed prices for metals, commodities. Peers reporting huge declines in profit. Glencore has managed to report a small dip. They beat consensus. Glencore is a trader. They have that offset, theyve been able to counter weaker prices. The Market Reaction has been fairly negative. Down almost 2 . Did not return any cash to shareholders. They started a buyback last year. The cfo told me they would consider that. Perhaps there were expectations of a buyback or higher dividends. Francine the stock is down 1. 8 . Maybe investors got used to the buyback. Jesse there were weaker numbers in the second half as well. Most analyst reaction has been fairly positive. Unclear as to what is going on. Francine that happen sometimes. Guy what happens next. M a is interesting. The perennial rumor driver when it comes to what happens next. Plenty of buyouts. Jesse glencore is usually acquisitive. The ceo has done many deals in the past 10 years. Recently they done one deal in the past 10 months. A bit more conservative on the balance sheet. He said they see fewer opportunities out there right now that they can take advantage of. They are reluctant to punp in to pump in large amount of capex. Francine i would imagine that valuation would have gone down with the price of commodities. Jesse ivey junior and of town they require big amounts of capex to keep goin. One thing to keep going. One thing the ceo doesnt want. Guy is there a little bit saying why did i get into physical. Prices dont look great. You wonder what numbers would look like if they did not have a physical business. Jesse you look at the deal two years ago, big debt on thermal coal. Probably not the best decision. Francine thank you. Audi launches a zeroemissions super car. Guy plenty of cool cars. Todays twitter question. What is more important to you your car or mobile phone . Which are you more emotionally attached to . Were in barcelona at the mobile world conference and geneva for the motor show. Francine ive had a couple that said the problem is that in the future it is your phone that will open your car. It is the chicken or the egg. There you go. We will roundup the best at the end of the show. Tweet us. flacqua and guyjohnsontv. Guy we will talk about francine lacquas car experiences. A good story to tell. Francine welcome back to the pulse. Guy revenue in macau fell by a record 48. 6 in february. Regular gamblers stayed away over the Lunar New Year holiday period. The ninth straight month of decline. Farmers macaus first annual decline in gaming revenue. Francine the dutch chipmaker Nxp Semiconductors has agreed to buy a u. S. Rival. The company is still looking to do more deals. We are not done. This gives us an ability to create a strong foundation. We just bought a bluetooth all Energy Company in china. It gives us additional connectivity standards. We will be active in doing the things we think are the required to put us in the best position to win in the marketplace. Guy the Federal Reserve could raise rates in june according to janus capitals bill gross. The former pimco ceo made his production in an interview. Mr. Gross potential bubbles in the stock market and bond markets. I think the fed is willing to at least acknowledge that buy. Raising Interest Rates a knowledge that by raising Interest Rates 25 basis points in june. Francine back to the geneva car show. Hans nichols with another top seo. Top ceo. Hans im joined by the ceo of audi. Hyoyou outsold mercedes and bmw. Mr. Stadler we are quite happy. We are more happy about the results of 2014 as a whole. We are keeping the number two position in global markets. Lets wait and see. Audi will see growth this year. Hans we have the e tron behind us. Why would i buy an r8 etron there are other electric vehicles . Mr. Stadler Drivetrain Technology is moving on. You have to show up with technology. The etron is packed with a sixcylinder. The r8 etron is a pure battery electric vehicle. This technology will show what is coming next on the battery electric vehicle. Hans the r8 etron competes directly with tesla and the i8 f rom bmw. Mr. Stadler the customer is happy with that. Hans what about other plans for a luxury coupe . Mr. Stadler what we are seeing is that we have to face a strong standards when it comes to co2 emissions. We will see a lot of etron plugin hybrid concepts at audi. Battery electric vehicles will come up until 2020 and audi will spearhead that. Hans a coupe or something beyond the a8 . Mr. Stadler between the a6 and a8 it will be positioned. This is the right place to be in the battery electric vehicle. Hans the a8 is as big as youre going to go . Mr. Stadler the a8 is the top range for audi. It stays at that. Hans that is clear. Weve talked about global currency swings. How is the weak weuro affecting sales . Mr. Stadler when we export to north america it is a benefit. We had difficult situations years ago but it is ok. We are worried about south america, brazil. We see the devaluation of the ruble in russia, which is affecting the Automotive Industry. The overall picture is not easy. At least we will see on the global sales a slight growth pattern. Audi will try to outperform and grow. Hans you are saying the situation in brazil could become as perilous as russia . Or it is a similar danger . Mr. Stadler the swing of currency is hitting a lot of companies very strongly and quickly. You cannot counter attack with production and whatever. You have to accept and you have to deal with. This has not influenced us. Hans what are sales going to be like in russia for 2015 . Mr. Stadler despite the ruble situation we have to increase prices because inflation is getting high. If you decrease prices, the customer is waiting. This is the momentum we see in the whole industry in russia. We will probably have lower sales in russia. Nevertheless it is only one market out of 130 in the world. Hans when we look at google and apple coming into the auto industry, are you worried . Mr. Stadler i do not know the plans of google and apple. We are not worried about. I think what we are seeing is the Automotive Industry has a really good core company. Apple and google have their own core competences. Somehow we will look for cooperation as we did last year with the open Automotive Alliance we made with google. We can learn from each other. We can win together. There will be places we have to compete. When you compete there is some friction and that his business. Hans give me the fueloxygen mix between competition and cooperation. Mr. Stadler we are the best in the world. Google and apple will not match that business. Our customer is looking to the carto car communication. The customer is online and everybody wants a stake in that. The customer is ours and we will entertain him and attract him. Hans what is the first country that is going to give you permission to have autonomous driving . You have technology but regulation is lagging behind. Mr. Stadler im optimistic about the u. S. Im optimistic about europe. Europe is picking up. Stacy thomas driving they see autonomous driving coming up quickly. The technology is prepared. We are prepared to invest and bring it to serious production. The european policymakers are saying where do you want to test . This is the best place to be. To make it hans very open transparent and quick. Hans give me a timeline. When can i drive from here to stay guard by myself . Mr. Stadler with autonomous driving, we hope 2017. Hans you are going to need eu regulations to change. Mr. Stadler this is our plan. If not, we are in the u. S. Hans as long as the car can park itself we are set. A lot of confidence from the audi ceo. A beautiful car behind us. Francine beautiful and, you know, it would be great to drive to work without having to do work. Hans nichols at the Geneva Motor Show. Guy lets change gears. Some pictures from moscow. The funeral abortion itself the funeral of boris nemtsov. That looks like the hearse. A number of foreign officials have been denied access to attend. Plenty of russians filing past and paying their respects to the man shot a few days back in the back. Francine we do not have any suspects being named. We will continue monitoring that story and bring you the latest. Francine welcome back to the pulse. Streaming on the ipad. Guy almost everyone has cracked the screen on their smartphone at some point. Kier sarah is bringing their latest ultrarugged smartphone to europe. We decided to put it to the test. Nearly everyone has a smart phone these days. Everyone has probably broken their screen at one point. That is where the kyocera comes in. Im nate. Kyocera has released the talk, a phone it describes as rugged. Before we attempt to destroy the phone, lets have a look. Thick for the competition. It is fairly standard of a device like this. Designed to fall out of hands and underneath trucks. The company says the phone can withstand being underwater. [music plays] oh [beep] ok, that did more damage to our equipment than our equipment it to the phone. One test left. Good god thats amazing. Could be the battery has been displaced. Not sure how you check. It is not working. The screen survived but the phone died a bitter death in the battle. Oh, well. The end. Francine i have returned summary phones. Our mobile guys would be happy if i had an unbreakable phone. Guy francine always has a hammer out. Francine for a look at what we are watching, back to barcelona. Guy caroline, who are you talking to next . Caroline we have got plenty more interviews coming up. Looking at more smart phones. I do not think it will be nearly as indestructible, john chen, blackberry ceo. Speaking about their latest devices. Pretty sure you cannot drive over them. Looking at what they have got on the market. The key one to turn into 1 45 gmt. Tom wheeler, the head of the u. S. Regularly fcc. Thtalking about regulation. In response to Mark Zuckerberg dodging whether or not Big Internet Companies like facebook and google should be under the same microscopic regulations as telecom operators. A chat with tom wheeler 1 45 gmt. Francine you spoke exclusively to the orange ceo. What did he say about the companys interest in Telecom Italia . Caroline he really did try to push back any of that furor around Telecom Italia. He set the record straight exclusively with us. Have a listen. Mr. Richard we are not in talks with Telecom Italia. I tried to explain this very clearly yesterday. Among all the ceos of european telcos we meet regularly. We exchanged our views on the situation in europe. Everyone knows that there is a need for consolidation, for convergence and consolidation. And that caroline deals to be done in europe but not in italy for orange. Maybe a bit in africa. Back to you in the studio. Francine we want to know, if you had to choose what is more important, a phone or car. That was our twitter question of the day. A lot of responses. Guy a car to get to work. Both, they keep you connected. Francine is inseparable from her phone. She does have a beautiful one in italy but no license. Francine i do not drive. That is it for the pulse. We will see you tomorrow. Tom 6003 hundred 20 miles from washington to tehran. White house and capitol hill light years apart. Prime minister netanyahu speaks to congress. Volatility, no volatility as markets cymer, waiting for janet. Your front hallway, bigger than olivias apartment. Good morning. This is bloomberg surveillance. We are live from new york. Joining me, Olivia Sterns and brendan greeley. Our combined to Square Footage is the size of someones front hall. Olivia Benjamin Netanyahu heads to capitol hill and a couple of hours. He is expected to reveal compromises that the u. S. Has made with iran. John boehner invited netanyahu without