Make changes. Is a spin off one of the options you are considering . No. We are not considering that option. Operation shutdown. Protesters begin a blockade in bangkok. Major roads and disrupting traffic in an effort to oust their Prime Minister. Two of europes biggest numbers from metro. Competing for a bigger slice of the emerging market. The wealth snags the golden globe wolf snags the golden globe. We are live in los angeles. Good morning. Welcome to countdown. It is 7 00 here in london this monday morning. Bloomberg reporters are standing by across the world ready to deliver the stories that will drive your day. Ryan chilcote is focused on ubs. Comments from the ceo of the bank. Hans nichols is in berlin looking at metro and carrefoure. Where is best place to put your money this year . Manus cranny has exclusive sachs inom goldman london. Caroline hyde is watching the latest trends in mens fashion week moving from london to milan. A bloomberg exclusive. Sergio ermotti says ubs wont spin off its Investment Bank. Issays the current model working. Ryan chilcote joins us now for more. We already knew that Sergio Ermotti was reorganizing the business for wealth management. We knew that he was going to cut 10,000 jobs, that he had already closed most of the debt trading businesses. Last week, medio backus said they are considering getting rid of Investment Banking altogether. In an exclusive interview with Sergio Ermotti in shanghai and he said that isnt the case. I think the Investment Bank is very strategic for us. We have been making a lot of changes to our strategy. The strategy is working. It is one that is focused on supporting our clients. Very defined assets and capital that we want to put at work in the Investment Bank. Therefore there is no necessity for us to make changes. Is a spin off one of the options youre considering . No. The whole issue is, they want to boost returns, get return on equity. That is the measure of returns for investors, up to above 15 by the end of next year. In october they said that wasnt going to work out. Regulators asked them to hold onto more money. They have all these litigation costs. They keep getting sued over Mortgage Backed securities and everything else. The thinking was that perhaps this is one of the ways they were going to achieve that. It turns out that is not the case. The swiss are tougher when they come to banking regulation. They have a role which is basically at the s percentage of assets which is probably going to be tougher than the global rule. This is another reason why many are suggesting they need to spin off this. Ubs had two major strikes. First, the government bailout about four or five years ago and then we had just two years ago, they thought they were through it. That was a 2. 3 billion hit when they were done unwinding the unauthorized trades. They have a lot of pressure on them including specifically on proprietary trading, Investment Banking. Last october we heard from the finance minister saying maybe some of switzerlands thanks will have to get rid of their security banks will have to get rid of their securities. Is he a little bit of pushback. They are cutting jobs and focusing on wealth management. He says it is working. It is worthwhile. Ryan, thank you very much. Metro reporting revenue in line with estimates. The store facing up with its cap part in france, carrefoure. Us fromhols joins berlin. What did we learn from metros earnings . We learned that the german consumer did not in fact save christmas through a massive amount of spending. You see german sales down almost 2 . Overall this is the story, the challenge of European Companies trying to expand abroad into emerging markets with a strong euro. You have seen some of their gains being eroded in the fx markets. Overall, in line with estimates but the numbers are a little disappointing. Here is what the ceo had to say in the report. He tried to put a brave face on it. Our new Financial Year got off to a solid start in spite of the still challenging economic backdrop. Soft christmas sales resented prevented better development. Reported sales declined by 3. 3 . This is basically due to negative currency fluctuation. Quarter of last year, down 2 in part because the market here is more competitive. From facing challenges discounters and that is really their overall challenge. Thanks. Hans nichols live in berlin. Showtime for the developed Market Recovery. That is the view of Goldman Sachs. What does that mean for where you put your money . Manus cranny is at the Goldman Sachs global strategy conference in london where bloomberg has exclusive access. Good morning. Anna, we have a great day ahead of us here at Goldman Sachs. Over 1000 Institutional Investors coming in here. We have bankers and researchers. It is a feast. We have peter oppenheimer. He is going to happen at 10 past seven. He is the chief strategist. Well togot access as the hole japan story. Mehy matsui is going to join in terms of abenomics. What goldmans view is in terms of abenomics, what Foreign Ownership you thought they were buying in size in 2013. We will get a statistic out of kathy matsui in terms of the size of Foreign Investors that could come. We then move on to an american focus. David is going to take us through his view for american equities. It is all about dividends and buybacks. Also, interesting view on technology. We are going to drill into strategy with david at 9 40. Then of course, it is all about the Economic Outlook for the u. S. The chief u. S. Economist joins me at 10 00 10 30 london time. I have those jobs numbers friday. Any change or just a blip in the sand . All of that through the morning. It is going to be a cracking day. Back to you. What a way to start monday morning. Nana, thank you. , thank you. China is the battleground for the worlds biggest car market. Volkswagen outsold General Motors there for the first time in nine years. It regained the top spot. Theyre making inroads into the luxury market. It treated in berlin. We are talking about a market with massive potential. You always hear about how big that market is in china. It has just become 20 million vehicles. The really key thing about china is that those 20 million vehicles are around 6 of the population. In the u. S. , the, the vehicles sold every year is about 80 of the population. That gives you an idea of the massive potential in china. Vw. It is so important for it just outsold gm for the first time in nine years to become the biggest carmaker in the Chinese Market. Vw is trying to become the worlds biggest carmaker by 2018. It has been helped by audi. Audi is the biggest seller of luxury cars in the Chinese Market. They have been doing extremely. Ell because of the a3 compact also, porsche doing well with sedans selling well. The question is going to be just in well their new suv sales the Chinese Market in 2014. They have a lot on that one as well. Things, david. Coming up, mens fashion week goes to milan. Caroline hyde has the scoop. Caroline. We are speaking to many a chief executive over there. Now it is all about the autumn and winter for 2014 in milan. Firm, asto montclair, well. Ferragamo as well. Ia, a mens suits company. That company saying, the chinese buyer still isnt spending as much. They are concerned about their sales for the first half of the year. We are also talking about share sales. We know that montclair came to the Market Selling shares last year. For such a still looking versace still looking to sell its stake. Coming up, we have more from our exclusive coverage of the Goldman Sachs strategy conference in london with an interview with chief strategist peter oppenheimer. That is next. Time for todays company news. Alcatel lucent in talks to sell its Enterprise Business according to people familiar with the matter. The unit cell Telecommunications Equipment and services. It has attracted interest from potential buyers including siemens and a chinese investor. General can outsold motors in china volkswagen outsold General Motors in china. This gives them a lead among foreign art a makers in the worlds a guest car market. Mercedesbenz is adding Touchpad Technology pioneered by the ipad to see class sedans. New features include an ipad like display, a 360 degree camera and sensors to enhance systems. The carmaker unveiled the overhaul of its bestseller at the International Auto show in detroit. Welcome to countdown. It is 7 15 here in london. For the developed Market Recovery according to Goldman Sachs. Being hosted by Goldman Sachs this morning at their global strategy conference in london. Bloomberg has exclusive access. Manus, over to you. Thank you. Lets get right to peter oppenheimer. Before he goes into meet and greet the investors. Right to have you with us this morning. The world has moved. You are with us about a month ago and we are in taper mode. The ecb sounded pretty supportive the other day. Has your thinking changed . Youre broadly bullish on equities even though we are in taper mode. The fact that we are in taper mode and that uncertainty surrounding the issue in some ways is helpful. Is that the Central Banks are still very accommodative in their language. We think they will be in their actions. That should become mind with a cyclical recovery in the global economy. Should be pretty positive for risky assets and equities where our major overweight are. Its talk about fridays report. Everything i read over the weekend is that it is an anomaly. What would it take to set the fed a little more alarmist mode and backtrack on this taper mode . I think a lot of it really revolves around the parameters that they said. Of course the unemployment number has come down again and is getting closer to the threshold. Recovery, a stronger and unemployment came to more quickly, it could be that investors started to question the ability to keep rates on hold. A lot of strategies still predicate around that. Out of 2016 in terms of rates being low. I love the peace. It is a long goodbye. We are now into the growth phase of this. Define that for me. Tell me what can i achieve as an Equity Investor around here in the u. K. . What can i achieve this year relative to last year . The longer by argument was predicated initially on the fact that risk premiums were so high in equities and so low in fixed income that you were being rewarded for taking risks a couple of years ago. Valuations have moved a lot. Valuation as a driver of returns is much less likely. Our view is that we are transitioning from a typical hoped raven valuation phase which weekend to get at the beginning of a bull market into ofore sustainable phase fundamental profit and dividend growth. That is what should drive the returns. They may be a little lower this year but still positive. I like the piece on dividends. Elated out that we had the banks join back. We were held back on that side versus the u. S. Or is a little bit of a shift in thinking. Tell me the industries that could benefit this area benefit from this. It is worth mentioning that u. S. Dividends have gone up by about 55 since 2010 and have been flat in europe he cause of problems in banks, you telecoms and utilities. We think the dividend pressures are total bottoming out. We should get reasonable growth across most sectors. Our focus is on the companies that have Strong EnoughBalance Sheets and cash flow to generate higher dividends. We think investors will be rewarded there. That punch through a few of these. Call, overweight versus neutral. You cant buy every european in terms of that. Last year was really two halves of the banks. The banks had outperformed a little bit. Most of it was driven by the periphery as risk premium came down and the previously on intestinal was seen as an opportunity. Vestable became an opportunity. Be less focused purely on the periphery. I have to get to your underweight. Cyclicals, chemicals and industrials. You question the validity of china. They have their. They have done their spending. Perhaps we should review where we are. I think it is worth emphasizing that we generally like cyclical companies. That is true not just in europe but in other regions as well. We think investors have undervalued cyclical Earnings Growth because uncertainty has been high. The exceptions for us are Industrial Companies and commodity related companies where we think and markets are flowing in a secular way. Although we are positive encyclicals, less so on industrials and commodity related companies. Great to have you with me this morning. Though face the whites of the eyes of your institutional clients. I hope you have a great day. See you later on. Peter oppenheimer, chief global strategist here. We have a cracking day for you at goldmans hq. Up next, japan and kathy matsui. What is her view on women in the abenomics . Back to you in the studio. Thank you very much. Up, what was this lantern doing in singapore . We will find out after the break. Welcome back to countdown i am anna edwards. It is time for hotshots. It takes guts to drive off of acapulcos most famous cliff. It may take even more guts to climb them. They spent hours scaling the 35 meter cliff, picking up rubbish and by tourists. That sounds like risky business. Purple grapes and luscious vine leaves are in abundance here. These grapes are growing in israel. Hasdding wine group developed here. A 10 meter horse shaped lantern was paraded through singapores chinatown. The celebration included colorful displays and was part of the official Opening Ceremony for the upcoming Chinese New Year which commences the year of the horse on january 31. Mark, back to you. Last nights Golden Globe Awards proved a big night for american dramas. From the amc tv series breaking the two films like American Hustle and 12 years a slave. Our news correspondent joins us on the phone from los angeles. Good morning to you. I suppose the awards were fairly balanced. It was evenly split. You probably have to say that American Hustle came out the big winner of the night. Definitely. American hustle upon the most awards when it comes to the Golden Globes. It is thanks to the leading ladies. You have Jennifer Lawrence who has won backtoback Golden Globes now. Won an award for best actress. Of course, it won best picture. The other big winner and i know you are a huge fan is breaking bad. It has never won a golden globe for the Television Series or for bryan cranston. The lead actor took home his first golden globe as playing walter white. The series won best tv series drama. It was a big night for breaking bad. It has left a massive hole in my life. How did tina fey and amy poehler do . I know they were popular last year. They were very popular last year and so far the reviews are coming in that they did a fantastic job again. That wee some times have seen ricky german ace host and we some felt he was too harsh on hollywood. Tina fey and amy poehler still ran jokes making fun of hollywoods leading man. My favorite joke is when tina wasmentioned that gravity nominated and she said it is a story about how George Clooney would rather float in space and die than spend one more moment with a woman off his own age. That got the biggest laugh of the night. These ladies know how to make fun of their peers but also keep it clean. I am mark barton in london. These are the Bloomberg Top headlines. Blocking major roads in bangkok, adding pressure on Prime MinisterYingluck Shinawatra to resign. Theonstrators government says it will deploy 20,000 soldiers and police to combat his blockades. Sayshief executive of ubs it wont spin off its Investment Bank. Sergio ermotti does the current model is working. Ifspoke to Stephen Engle and in an exclusive interview in shanghai. We have assets and capital that we want to put at work in the Investment Bank. For us too necessity make changes. Is a spin off one of the options you are considering . No. We are not considering that option. The female stars of American Hustle take awards at the Golden Globes. Jennifer lawrence won for best supporting actress. Amy adams was voted best actress and a film comedy. They thanked the director for creating Strong Female roles. Hello, welcome to countdown. If you have ever seen an outfit on the street and wondered where someone purchased it, you are in luck. You ever have that problem . Never. Have, i assure you. If you can snap a picture, you can buy it in just seconds using a new app. We ar