You are watching the pulse. I am guy johnson. I am Francine Lacqua and this is what is coming up. We have another exclusive interview to bring you. We are live at the ceo of airbus. We are live with the ceo of airbus. The house of representatives has passed the first bipartisan budget in four years. The twoyear, trillion dollar deal clears the way for the president to approve spending to avoidingll lead a shutdown. Is not the grand bargain were expecting but it is something. Were seeing spending rising. I love the line from this morning. Rise, we are not dealing with entitlement or corporate taxation. Have a look at this. Jamie dimon made a comment which was carried in the financial times. It was, thank you, thank you and may god bless you. When it comes to politics, i think boehner who is that House Speaker is all about progress. This budget is a positive step in that direction. It is progress. It is doing what the American People expect us to do, which is coming together and finding Common Ground. That Common Ground comes weough in the vote date hundred 3294. Of course there is dissent within the tea party and the heritage party. It is a reduction in terms of sequester. It is dealing with some of those issues. Monetary policy is going to be affected by this. That is a story will be focusing on as we move toward the feds decision. The political shockwaves it sends out in many ways are also as important leaning forward from here. In reading everything of the story, i think political progression and rehabilitation of the grand old party or the republicans. We know it is split. What comes through clearly is paul ryan is a contender for president ial has he put himself on a pedestal in terms of assuming high speaker role, a great mediator of bargains or has he compromised his position in terms of running for presidency because he has acquiesced, because he has done a deal they will send to the senate . To that and if you look at the ratings, they were floored, they were bombed. The red lifetime lows the cousin of the shutdown of the government. They were at lifetime lows because of the shutdown of the government. Manus, thank you for that. Gm is selling at seven percent stake in persia oh. In peugeot. Ryan chilcote has more on that. What exactly did we find out today . Peugeot is getting hammered. Shares down almost 11 . If you look at the year, investors of usual have done pretty well. Share price by up more than 70 . What a rocky ride it is. Shares down more than seven percent yesterday. Look, gm and peugeot are going to continue their partnership and continue to buy and develop products together, but i think everybody understands this partnership is not going to be on the same grand scale that was originally envisioned just last year. That is not because peugeot announced theyre not saving as much money as they anticipated, but they are competing for customers, right . That is not helping them. Gm bought the seven percent stake last year to underpin its partnership. It says peugeot no longer needs that Capital Support. The background is peugeot talking to its chinese partner g. Gfang there i talk to me about what this says about gm. A lot of news coming out of gm this week. We have dan ackerson moving on. Hes using this to tick off his boxes before he does that come announcing all kinds of exits including his own, right . It will come on january 1 when the new ceo in 2014 takes over. We also learned that theyre going to exit ally financial, the remaining stake being sold for 1 billion at a healthy profit. Here in europe, i think this is are limiting their exposure, getting rid of the chevy brand which will be gone in two years. Europe has been a bloodbath for gm. Not just a shortlived one, but it has gone on since 1999. They have lost 19 billion here. Back to you. Ryan, thank you very much. Ryan chilcote on the latest from the car sector. On the ourmberg exclusive, European Business correspondent Caroline Hyde joins us now with more on the google story. All aboute, this is optimizing performance. Google can basically better control the interaction between hardware and software, but it is also about cutting costs. Giants such as google and facebook are looking for lower powered machines for their more basic applications. For those applications you dont need massive amounts of computer power. You can use a cheaper chip. Now they can steal market share and service. This is all about disruption of the established order. The established order being intel . Exactly. Not such good news for intel. Google is amongst the largest buyers. It could threaten intels market dominance. It currently provides 95 of chips for server processors. Google is intels fifth largest customer. It spends at least 500 million, 500 million of server chips every year. That is not too much need to panic yet. Building from scratch is going to take at least three years. If you need really big supercomputer type crunching numbers and data when youre still going to need a for ari, you will still need an intel chip. Caroline hyde with the very latest on technology companies. Using bitcoins could bleed , according to the European Union which is considering regulating the currency. The basic message about buying bitcoins is caveat emptor, buyer beware, because the European Banking Authority has put out a report and has outlined a whole lot of risks for consumers. First of all, these are traded on unregulated platforms. If that platform were to fail or close for some reason, you arent guaranteed to get your money back if you happen to be your bitcoins arent lodged there like a bank. You are at risk of not having anywhere to trade your bitcoins. Is second point they make that these coins are being held in digital wallets. Every digital wallet is susceptible to being hacked. Theres no deposit refund scheme in place, so if you get your money hacked by a hacker, you might not get it back and we have artie seen some people losing as much as 1 million worth of money which is being hacked from the digital wallets. Finally, another point they make is that because the whole trade is anonymous, that means it is susceptible to be used by money launderers. So the authorities decide someone is doing too much Money Laundering they may just go ahead and close down the platform. That is another risk, guys. How much would the market be worth now . Do we have any estimates or guesstimates . Are outinate bitcoins there and they know what theyre trading at, with about 10 and five alien dollars if you were to buy them all up at once. As for who owns the mall or who knows about them, bloomberg did who owns them all or who knows about them, bloomberg found out that six percent of people thought it was an xbox game, other studies in iphone app, 42 of americans actually know it is a Virtual Currency. Of news for you, norway said they are not going to count this as a Virtual Currency. It is going to be an asset and the know each and services are going to tax any capital gains. Another risk. A story to watch. David tweed from berlin. We didnt pull the europeans who think it is an xbox. I thought that was funny. Heres what else is on our radar. The ceos finally resigned as rsa slumps. Jpmorgan is nearing a 2 billion dollars settlement to resolve investigations into whether it ignored warning signs about ernie made office crimes. He was behind the largest ponzi scheme in history. A deal could be announced before the end of the year. The board is working to decide on a ceo as early as this year. Ballmer said he planned to retire within a year. What have we got for you in the next part of our program . Rx queue look into the luxury yacht maker seen as the ferrari of the seas. We at the water with riva to learn how to ride in style. That is coming up next. Good morning, everybody. Welcome back good lets get to our big focus for the program for the next couple of hours we are going to take you inside makesthe italian brand million euro yachts for the rich and famous. Fot was a fan. S a let me show you what all the fuss is about. Glamorous, romantic and refined. Rivas boats are made for beautiful people, and more importantly for beautiful weather. This is not what i had in mind. That means is two things. The first is that the rain coaches on. At 44 feet, the riva rom a is sophisticated. It would be somewhere between a for ari and a rollsroyce. Two 800d, there are horsepower engines back there. If you want this thing to go, it can go. Top speed is 41 knots and that on a day like this feels a little abrasive. I still cant wipe the smile off my face. There is a fully fitted kitchen under here in the head over here is all you could ask for. It all becomes too much. You can forget about the mod cons, this boat is all about joining a club. Its membership has included Sophia Lorraine and sean connery. The price of entry is high. I learned two things in that package. You pretty good on the riva and. Ive great balance very would love to do it all again on a sunny day. Youre being battered by the weather. The italian lakes are still pretty cool. Now it is time for our exclusive interview with the ceo that owns riva. Me what he wants to do is make more of rivas heritage and fulfill its potential as one of europes top Luxury Brands such as lvmh. Boats ofst beautiful the last century is our kelly. Are the best for the same brand. We have the same designers of the boat to develop something else, something we have called the riva experience. Something like an object we have developed for our owner but can be purchased by everybody that loves the brand and loves the expressingva is itself. We are working right now to open ourselves to the public by creating a sort of gallery. We want to share the great heritage and great story of riva to the open public. You do the same . Ferrari is a Wonderful Company and they have just closed the most fiscally successful year ever. We would like to be perceived as the ferrari of the sea. Were going to bring you more of that exclusive interview later on. Why america is still rivas number one market heard this business is no chinese owned. Were going to take a look inside the factory and show you how you build one of these beautiful boats as well. To planes itoats is been a tough week for europes Biggest Aerospace company. Still, it has a new plan to keep things simple. Jonathan ferro joins us with the very latest. It is all about communication. We start with the name itself. It would change in january. Streamline the name and simplify the business. Take a step back from the defense side of the business. 5800 jobs will be shed from the defense side of things. The government are spending are cutting their spending ou on defense. Ceo ran airbus and he knows how to streamline and focus on where the money is. The guy who took over for him is upstairs at the moment. Is an operations guide. Years are going to be significant for this business. Thes been a tough sell, 8380. He developed the 350 which is yet to fly. What is the next 10 years going to be all about . After the a350 there are new lanes in the pipeline. Is all about milking what you have. You get more bang for your box. Wet be interesting is that talk about these companies restructuring. Theyre about as nimble as tanks. I want to get his insight as to how difficult it is to turn around. He doesnt run that it of the business. He runs the airbus business. These guys are going to make some serious money over the next few years. Everything is changing in this industry. How does it look in 10 years time is going to be fascinating. Thank you so much very at beyonce has just released a Surprising New album on itunes. Welcome back to the pulse. Streaming on your tablet, your phone and bloomberg. Com. To our markets editor, manus cranny. London is the only laggard among the markets. As a twomonth low for london but as for the rest of the markets, the dax is down over 1. 5 this week, paris is down also. Let me show you what the terror of the london markets is. It is our as a. We knew they were going to have to put more capital in. Today the ceos gone. This shows you just how dramatic the move has been for rsa, guide. We have an eight. 5 year low for the stock we havent eight and a half year low for this. Tock another tough day in terms of rsa. When you cross over to the states, a lovely gift of a story this morning. About 0. 25 . Up there is a traitor who spent 5 million buying a pet that volatility will rise over the next four months in april. He is taking the view that what you will go through a tough time in the first couple months of the year. It is year of transition. Wherever heard that before . Back to you. Still to come on the pulse. Would live with the ceo of airbus. We will discuss new strategies in 2014. We will be delighted to have you along for the ride. We will see you in a moment. Welcome back to the pulse. Im Francine Lacqua. Here are bloombergs top headlines. The u. S. House has passed its first bipartisan budget in four years. The trillion dollar budget removes automatic spending cuts including 20 billion in cuts for the military starting next month. President obama says he will sign the final measure. Has executedays it the leaders uncle for treason. He is the most senior figure to be purged since kim took power nearly two years ago. Union has offered the ukraine funds to overhaul its economy. Cash would be available at the country signed a free trade pact with the eu. Guy, you have more on the ukraine now. We certainly do. In the battle for ukraines bloombergrchs zero editor rob lafranco is saying how billionaires could have a big part in taking down the president. Well talk about the names in just a minute. They have a vested interest in this countrys future, a big vested interest. Presumably, that is been tied to the president. Exactly. Most of that fortune has been accumulated by purchasings date assets. Similar to a we saw in russia. The economy is concentrated in a very small number of hands. The richest man is worth about 13 billion dollars for use the Metals Market. Is alsond richest man the Metals Market is worth about three billion dollars. It is a really small number of people who are concentrating this economy. In russia if you went against his how are you went he ended up in prison. There was an armed revolution that leaned towards the west. These men are producing metals and energy. They do have to integrate with the rest of the european economy. The problem is that when the , thee revolution came previous president was not for successfully managing the economy. A very prorussian president came in and he snubbed the eu and allied himself with russia. It is about stability right now. Yes, to get business done. Well learn more later. Europe editor rob difranco. Major of italys last independent jewelers is investing heavily in newer markets in search of new or young wealth. Caroline hyde reports. Dummy on he is a Family Business now in its third is ation damiani Family Business now in its third generation. The ceo sees himself as an ambassador for italian style in italy rich people are old. Instead, the jeweler is turning to central and east asia. Quality anditalian heritage is an asset that people will pay extra for. Inasian people love made italy and high quality items. Is investing heavily. Hes planning to open 4050 stores in the next fourfive years. The damiani family, theres more involved in money. More involved than money. Caroline hyde joins us for damiani. Is well known for the family goldsmith it has in south milan. Is not only being designed but made. They get the gold and by the gems from nonconflict areas. They buy all their gold from they took over the country when he was 26. Use keeping very much to the production and sales in italy. We asked a few seeing a turn in corner in sales in italy. Sales up 16 across the board because it is all about asia and emerging markets. China, malaysia, the main thinking is still that they are not selling out. Out. Ari selllagr it is the last of the independently held italian luxury companies. Their product being italian but theyre looking to emerging markets. And to the younger clientele. As a younger person i wouldnt buy these tools. Im not sure that the chinese would buy these, either. In moscow,eiling malaysia, china. They went on a tour with sophia loren. That was back in april. They really are trying to woo in the asian crowds. Theyre not looking to sell out overall. Theyre looking to the east, but also they still have 76 owned by the family. They do have great big logos. Maybe there is a market out there for something not european. Thank you, carolyn for the st on damiani. It makes milliondollar yachts for the rich and famous. We brought you part of our exclusive interview with the ceo. He tells us that riva wants to be one of europes top luxury hermes. We lvmh or take you to the factory where the craft boats that stand out from the rivals. I am riva product manager. You whereo explain to riva boats are born. Realize the 44. We start to install the first cable. There we start to install the engine and the fuel tank. Then we start to see the boat. Here we placed the deck on the hall and we start to see the shape of the boat. Finish the days to whole piece of work and we apply 20 layers of varnish by hand. This is the last step. And testheck the boat all the systems on board. The electrical system. When all systems are done and ready, we start to test the boat on the lake. Izio. Has a very long history and we will bring you more of our interview with the ceo. He will tell you why the american boat i are is still number one despite the companys evenhinese owner. Princess grace of monaco had one. Yes and theyre going to sell that boat shortly. I wish i could buy it. We have asked ceos to name their favorite books of 2013. T is great if you like and sounded by library. This was chosen by alan and the two men who are the architects of the federal reserve. Is a juicy book. It is a juicy book. Everyone went with history or and i am stunned that someone has the downtime to read these books. Picked for brooks, one of them was my way, the book by frank sinatra. He read one on a group of native americans and how they run with their feet. A book on how gm and at t were reinvented. When youre a billionaire you 4n choose for books. We got what have coming up . We have our exclusive interview with the ceo of airbus. Were going to talk to him about the Company Strategy