This is what is coming up on the program. Intons boat show sales town as britains boating industry makes a comeback. We speak to the most prestigious yacht builder. We will be alive with the managing director of sunseeker. Not much of it, around at the moment. We begin with a cold that is sweeping the united states. It is headed towards the east coast right now. Temperatures are set to plummet over the next few hours. New york has been 30 degrees celsius. In chicago, it is even icier, with a high of 18 degrees. Yes, that is the hide. Officials are warning people to remain indoors as much as possible. These dangerous conditions will continue to cause chaos for travelers. More than 9000 flights have been canceled in the last or days and even more have long delays. Jfk has a huge backlog of flights. The airport was forced to shut for two hours after a plane skidded on the runway. Children. For several schools have canceled all classes this monday. We will keep track of the situation and bring you updates on the situation. That is coming up later this hour. Good for the children, not good for the parents. Lets look at some data. Eurozone pmi Services Data coming out early on. Come throughve incredibly strongly. The difference between spain and italy is becoming quite clear. The german number is weaker than anticipated, still fairly strong. In terms of the eurozone confidence number, in line with expectations. Completely in line. We were expecting 51. It is more interesting to see the diversions between the divergence between countries. And the french numbers are weak. It will be interesting to see what jack lew is going to make of all of this. Week withg later this Wolfgang Schauble will be fascinating. U. K. Chancellor George Osborne will set out his vision of a longterm economic plan today. He plans to fund tax cuts by reducing spending. The u. K. Arecs in beginning to focus on the next general election and the message we will get from osborne today is very much part of that story. It is really about politicizing the recovery. Yes, we are seeing stronger growth in the western world, but we will not be stepping back from austerity even though things are starting to pick up. We expect George Osborne to drive home that message. On the tax side, he might give us a couple of clues about tax employers. Tivizing front and center in his argument is that that extra money will not come from extra borrowing. It will come from spending cuts elsewhere. That is where they pit themselves against the opposition party. Badly in not doing too the u. K. Compared to the rest of the eurozone. Nextwill really decide the elections, we think, are things like immigration and there is not that much focus on the economy. It is starting to focus somewhat to shift focus somewhat. Those that voted for him in 2010 have gone elsewhere. Half of that 37 have gone to the u. K. Independence party. Front and center, a politicized aspect to it being kicked around by both parties. The conservatives are in power after the next election to opt out of the eu. A lot of this has to do with immigration. Thank you very much indeed. George osborne speaking in birmingham at 930 at 9 30. We will get some data on the economy as well. The british boat burning boat building industry got back to profit. There was cause for celebration at londons boat show. Ryan chilcote is on the ground. Maybe not on the ground. Down at the boat show, very nice, ryan. A celebration it is. This boat show opens in an hour and they are already celebrating. Hundreds of millions of dollars of votes and boating para paraphernalia for sale here. Is called the cockpit. I know it is a bit confusing, but that is the boating vernacular. Lets take a look at the rest of it. This is a world debut, never shown before this weekend. This boat goes for 3. 5 million. That is the starting price. This is the saloon. Screen righth there, as you can see. Notice the windows. A big trend in the boating world is to have a lot of glass and get as much Natural Light into the boat as possible. This, obviously, is the dining room. Unfortunately, they did not leave back breakfast out for me. We will forgive them for that. This is the helm. This is an owneroperator boat. You can drive this yourself, though most people have crews. This is called the lower hull. There are actually two different places where you can drive the boat from. Is au can see, there bottle of champagne on here, but it is obviously empty. It starts at 3. 5 million. If you want the media system on board, the price only goes up. That will cost you an extra 20,000 pounds. Driving it yourself, i would not recommend that. Then again, what do i know about boats . Or even cars. How is the boating industry going, ryan . Right. S all relative, sales and exports are up to places like the united states, mexico. China is a big prospect in the future. Europe is sort of coming online. The user doing better. This was the first year they really saw that since the financial crisis. There are some pretty dark days here. Eggs are up and they are very excited about that. Sun seeker is seeing not just ,heir very expensive boats boats like this, sort of affordable luxury, single digit Million Dollar boats, those are starting to sell as well and they are very happy about that. That is why they are celebrating. Thank you very much. It is said that the two happiest days when it comes to boat ownership are the days that you buy the boat and the day that you sell the boat. We will be back later with ryan. He will be talking to the managing director of sun seeker. Corporate news, samsung is looking to transition its Smartphone Technology onto four wheels. It is making a push and automotive navigation and entertainment systems. European Business Correspondent joins us with more details. Why not look at the Auto Industry . The stats are phenomenal. Than 150expecting more million cars to be connected to the internet. That is more than the entire amount of cars that were produced this year alone. The amount of chips, the value in each car, has rocketed up 65 in the last decade. This is why samsung, which dominates about one third of the smartphone market, is trying to look at ways in which it can get its technology into the Auto Industry. Some interesting ways in which they might do it, look for ofdows to be made transparent, flat panels, so that while you are driving, you can see a map in front of you and still see in front of you. Sensors for passenger health. Might just match your mood as you drive. All important, you could be analyzing the traffic, suggesting a better route that you might want to drive. All of this is ahead of the International ConsumerElectronics Show in las vegas. On focus is pure and center the Auto Industry. A record nine carmakers are going to be there. Diu have the likes of au reporting that they may be announcing a deal with google. Is going to be a big one. Samsung numbers out tonight andhtc out tonight. Good start. To a they used to dominate a quarter of the u. S. Market. Not anymore. It is really a fault rum grace. , butlaunched a Campaign Still sales down 29 . They are down for nine straight quarters. They have their first annual loss. These are some of the ads they are using with Robert Downey jr. Htcfunny ways for what stands for, a hipster troll car wash, a humongous tinfoil catamaran, perhaps . Sales are down and clearly there is a concern about this Company Going forward. Thank you very. Caroline hyde. Bitcoins havef passed 1000 again on the mt. Gox exchange after zynga said it would start excepting the virtual currency. They first crossed the threshold in late november and then plummeted. Look at the volatility there. As theertook toyota countries six largest foreign automaker. The popularity of the ford focus helped them sell faster than any major competitor. Chinese stocks hit a five month low on evidence that it he cant ash that its economy slowed in december. The services age fell from the previous month according to hsbc and market economics. What do we have coming up for you . The race to create an nsaproof phone. Wanting toysicists supply alter secure devices for the german government. Edward snowden has been bad for relations between the u. S. And germany. Good for some german businesses. Hans nichols now takes a look at two Tech Companies that may profit as they vie to produce the next secure smartphone. Before snowdens bombshells, two phones were competing for just one customer, the german government. Angela merkel and the ministers whot text her. About the nsa listening in, the two companies are receiving a surge in demand for what might be this years davos status symbol, a secure smartphone. Onwe have always been secure confidentiality. We think that what we are offering now should be attractive to them. Code towrite lines of virtualize the android operating system. Euros. Ce, 1700 is inserted next to the sim card. You can toggle backandforth between the secure code and the public one. This is all blackandwhite. It must be in this compartment. If you switch to the light see it ist, you will normal android. Their competition, a modified blackberry listed at 2000 euros. They offer discounts for bulk buyers and they claim they are more secure. Becomes important. Voice was not, important. There is value in your voice. Ofthey have the stamp approval from germanys office of Information Security with a tender to sell some 10,000 devices. Verbal has posed with the blackberry, but it is a closely guarded secret which device will become the official chancellor phone. Be sortingoing to that story at. Most and we will talk at davos and we will talk about it now. Finn hudson ventures partner joins us right now. Snowden changed a lot of in a lot of different arenas. A lot them have been in tech. We just saw the race for a secure merkel phone, sounds like the bat phone. How big of an investment shift have we seen because of this . Security came back on the map. A lot of venture capitalists were not so bullish on the Security Agency the security industry. Not a lot had changed. Eye, a 7ee fire million opening. There is a resurgence of security, mostly driven by a cyclical trend. Everything is going into the cloud, which opens up a whole set of even if we had not had noting, we would have the chinese. The chinese, there was a report that the company that fire i just written just acquired says that there was a Security Team founded by the Liberation Army that was going through and hacking american websites and gathering all the everything from command andcontrol systems all the way down to information systems. Last year, googles australian data system got compromised because someone came through the heating and ventilation system. There was a weakness in the code and so they got into the data center. The benefit for us is that we access them from anywhere. The hackers can also access them from anywhere, meaning these things become weakened. Of paranoiaa lot that u. S. Companies are handin hand with the nsa, that the nsa is being allowed access into their systems by backdoors or whatever it is. Still do not understand all of the mechanisms. How real is that as a threat . It is murky. We all worry about what happens when the chinese come and invade our systems. The truth is, the nsa is listening into as much information as they can do. That is how they gather intelligence and they can act on intelligence. It is their mandate to try to listen to everything. They need these backdoors to come in. It seems like every month, there is a release from one company or another saying that we either let them in or did not let them in or they bypassed us. Last week, apple said we had nothing to do with this and the nsa said they could even drop on eavesdrop on virtually every apple phone out there. It will be interesting to see how the Tech Industry response to all of this. Re is clearly a bunch of there are good reasons to let the nsa in and bad reasons. End of theata at the day, as consumers. When you look at the reality of securing systems, how realistic is that . The companies are coming threat the moment saying, we are in the security business. It strikes me that there will be never there will never be anything 100 watertight. You have a group of people trying to exploit the systems and a group of people trying to defend the systems. Who is more dance . We all defend our computers, but as all of these services go into the cloud and the hackers get more brilliant, finding exploits around the services, they can do a lot more stuff. The next generation of security equipment defenders will defend these things. They are not going to defend every system out there. I have a Burglar Alarm on my and my neighbor does not so the burglar will go to their house. I can spend as much as i can, but it is really a deterrent. If someone wants to get into that your systems, they will be into your systems, they will be able to engineer their way around. It is hard to break into your house, but it is really hard to break into the white house. You can spend a lot of money on security, it will be the same thing. Every enterprise has limited staff at the end of the day. You cannot invest Infinite Resources on these things and that is what the hackers and the hackers exploit. That is why you buy Security Products to defend these things because you are always curtailed by the amount of resources thrown into these things. That is why there is a wave of innovation after innovation in these industries. The Security Systems have to get more robust every time. Isry time that happens, it the nextgeneration Security Company they capitalize on this. Francine, back to you. Still to come, competing on the catwalk. International Names Take Center Stage at the menswear fashion week in london and they are battling for big business. Find out what company is set to win the biggest lights of a 10 billion pound five. Pie. Welcome back to the pulse, live on bloomberg television, radio, and streaming on your tablet, your phone, and bloomberg. Com. We kick off the first full week of the trading story. What is it looking like . The chinese have underwhelmed in terms of Services Data. Europe is actually growing. You would not think to look at this map on the first week straight. European services actually expanded for the fifth month. Italian saw a contraction. Confidence is rising here in the u k. Cfos are the most bullish in 3. 5 years. Can you imagine the power of a cfo and the Risk Appetite of businesses in the u. K. . What is all of that going to do in terms of employment and rates , Interest Rates in the u. K. . Act beforeforced to next year . The market says the rates will be over one percent by next year. The u. S. Will get nonmanufacturing data, u. S. Futures indicating lower. Virtually unchanged. You will also get factory orders and there is only one number that matters this week. 195,000, the number of jobs that have been added to the u. S. Economy. Why . This will dictate what happens with tapering, whether it is a continuous process of 10 billion per month for the next several months, and that is the consensus from the pole that we have done here at bloomberg. Lets dig into currencies. The dollar is just off a four month high. Just coming a little bit lower. The strong upward trend should continue. Back to you. Thank you so much. Coming up, we will take you inside the most exclusive restaurant in america. It only has one employee. You have to eat in his basement and it could cost you nearly 300. Is it worth it . We are going to find out. In the meantime, you can follow both of us on twitter. Welcome back to the pulse. Were looking at Services Data that is breaking now. Is artie trading lower this morning. 58. 8. I think it is a little bit weaker than we were anticipating. This is for the month of december. It is even weaker than we had in november. We had a reading of 60. Were expecting 60. 3 and it went below 60 at 58 18. Clearly u. K. Services sector is the biggest part of the economy by a considerable margin. As weakening is not going to play well politically. That is important because we have the u. K. Chancellor speaking later. Lets run you through our top headlines. The british exchequer will say spending will allow income taxes and job tax reductions to become permanent. The coldest air in almost 20 years is weeping over the central u. S. Chicagos high is expected to be 18 degrees celsius. Snow, rain and ice will persist in several major cities. Thousands of flights have been canceled. New yorks jfkt airport, shutting the airport for two hours. The airbus a 380 lost cabin pressure as it was flying from london to singapore. Flight 317 landed at lock who airport just after landed atbaku airport. According to people with knowledge of the matter, the up theatte member will take it will beva. A relief to investors craving stability in the Worlds Largest manufacturer of generic drugs which has been lurching from crisis to crisis over the last few months or so. Lets not forget two months ago it parted company with its chief executive jerry jeremy levin. Mr. Goodman is quite wellknown in the business and Investment Community in israel. He is quite a seasoned executive. He is a former executive of strauss group. He is also currently the chief executive of the Worlds Largest agrochemicals maker. It is itself owned by china. As he said, francine, he is a teva. Heer t of has the trust of the Investor Community and israel and the trick is to translate that to the united states. Have a new man but the same problems, basically. Guy, my chemistry teacher used to say same woman different hat or just because you have a different face there in the form doesnt chief executive mean the problems will go