That has just been passed in italy. The law requires them to purchase internet ads from locally registered firms. Caroline hyde us with the details. What is the objective here . It is all about clamping down on the shift of taxable profits. Ofis all aimed at the likes google, amazon, yahoo . We know that they shift large amounts of profit around the world to socalled havens. The likes of ireland, luxembourg, bermuda. Italy is trying to crack down on this and they passed a measure saying that if you are going to buy internet ads from a company in italy, you have to buy it from a locallyregistered company. It cannot be something that happens to be registered in ireland. There is plenty of concern at the moment. This law is not without controversy. Some say could violate eu law. This is what many lawyers are saying. As it stands, the measure does not hold above water when you look at eu law. They say it is a violation of competition law. They are trying to force the hand of the oecd. They are trying to lead the way because there is 100 billion at stake and that is how much europe and the u. S. Uses intact from the likes of amazon, google, starbucks. The oecd put out a blueprint to clamp down to try to fight these strategies of these companies. ,taly taking the first step maybe forcing the oecd to shift up a gear. At the moment, the plan they are currently formulating will not be finished until the end of 2015. Lets talk about money. How much could who will lose as a result of this or how much will it save by shifting its profits . At the moment, a staggering 2 billion is how much google managed to cut off its mobile income tax bill just last year. Is claimingoes it all the advertising it sells in europe is done from its irish unit. It then pays the royalties do and irish unit headquartered in bermuda. At way, they are able to push down their overall tax costs. Italy, their income tax stood at just 1. 8 million last year. Clearly, italy feeling aggrieved by this and wants to push through a law. Is saying we will abide by the eu laws and try to fit in with that. It looks like they are trying to speed up the process. Interesting to see if they will follow suit. Days since being released from prison, Mikhail Khodorkovsky is speaking out. Bloomberg spoke with the man, one of his first interviews since given his freedom two days ago. Ryan chilcote got his take on the company that replaced his as russias biggest oil producer. , after you were released which, to a certain extent exists thanks to the assets that were part of your company, said they would be happy to give you a job read he was joking. Maybe he was actually mocking you. How does that make you feel . His comments were a joke. That, right up to the very end, he was trying to convince the country leader not to free me. Only because he was personally afraid of something. A man who wants to joke around with an opponent on weaker footing and with integrity should not use the power of the state to get rid of him. 20 of rosneft. Some would say that effectively legalizes what some would argue was the expropriation of the assets. How do you feel about that and bp . I agree with the idea that when you are doing business, you can do anything that you love within the law. What bp did is entirely lawful. It is another matter whether it was ethical and whether business should be concerned with ethics. Perhaps every company in society has to answer that one for themselves. Ryan chilcote there. You will hear more from our interview with him later on as well. Fors u. K. Shoppers hunt their christmas dinners, more and more are turning to german discount supermarkets. David tweed joins us from berlin. David, you have some data on our mince pies. I do indeed. It is quite surprising. There was a test, 12 retailers would in their mince pies to be ranked. The number one mince pie in the entire United Kingdom comes from aldi. Pie andpest mince number two in the entire United Kingdom comes from lidl. 1. 79 for 6 pies. That compares with nearly 13 pounds at fordham and masons. Those are the bottom of the list of 12. You might think that this is a complete freak and not something that would necessarily repeat itself. The thing is, this is part of a strategy that is working for aldi and lidl. In the three months up to the ninth of december, those two stores in the United Kingdom actually gained market share while the big 4 lost market share. I am talking about sainsbury, tesco, asda, and morrisons. Actually gaining market share. Quite extraordinary. Tell us about the owners of these german supermarkets. They are billionaires. Actually, they are the richest and the second richest germans. If you look at them in the rich list that bloomberg does, they rank immediately after mark zuckerberg. The richest of them is worth 23 billion no, he is worth more than that. Brecht. Ur right al aldi. Albrect discount. That is where comes from. The two brothers started to expand in 1946. That is the basis of what they have been doing. A are pushing into the United States at the moment. 25. 6xt one is worth billion. Interesting story about the name of this. Store whato call his would translate to black market so he settled on the name lidl. These companies are worldwide institutions. They have been in the United Kingdom since the mid1990s but they have only been really gaining market share in the past five or six years. Middleclass shoppers have become a lot more price aware, partly due to the recession, i suppose. Thank you very much indeed. David tweed joining us from berlin. Here is a look at what else is on our radar today. Strong winds and flooding are disrupting holiday journeys. Gatwick airport has reported a major power outage at its north terminal. That is causing flight cancellations. There are also delays at heathrow. Rail services have also been disrupted. At least three people have been killed from the Severe Weather so far. President obama has extended the deadline to sign up for Health Insurance. Today was supposed to be the last day to sign up for coverage in the new year. When thousands of people rushed the site, the government pushed back the deadline to midnight to give them all access. Andnd twitters cofounder chairman has been elected to walt disneys board of directors. He will stand with the other directors at a meeting in march. Disney says the Company Hopes to reach more people through new technologies and new platforms. As we head into break, the Backstreet Boys made it big in the 1990s with songs like everybody. Now they are making big changes to how they are managed. He will tell you about a new trend sweeping the Music Industry. Welcome back to the pulse. We are live on bloomberg tv, streaming on bloomberg. Com, your tablet, phone, and any Windows Phone as well. The bank of japan has left deflation off its monthly comic report for the First Time Since 2009. That is as the yen extends to eight straight weeks of losses against the dollar. Joining us now to discuss the outlook or japan is the head of Economic Research at mitsubishi. Great to have you on the program. What will happen to the yen . It is something of a oneway bet. There is no such thing as free lunch. There are two scenarios in which the yen could rebound. One is some sort of asset price speculative fever retrenching to some degree in global markets. The other situation would be very good news on Investment Opportunity in japan. Capital expenditure by companies picking up. I think that would tend to go along with rising yields and a stronger yen. Why is that . Capext scenario of picking up is in the range of 10 20 . We do have the problem in the u. S. With quantitative easing and monetary uncertainty. Businesses realize that there is an asset problem in the future and distrust level of high equity prices. In the case of japan, they have lowered the yen and do not plow funds into investment. That is a problem. What is your take on the u. S. . Bankse them as to central completely diverging. The fed is thinking about tightening. Or you see the fed as very dovish. Even if they pull back a little on stimulus, the amount of stimulus is so dovish that there is not really that kind of dichotomy. What we have seen over the last few games days is more to do with games than any real fundamentals. Fact, a bit of the data may have been swayed by inventories and there is concern about retail sales maybe not being a strong. I see the real action being in the bond markets with the u. S. Bond yields having risen substantially since early this year. Whilst japanese yields have gone down and remained stuck at about. 6 . That widening spread has been key to the yen move. I by no means think that these u. S. Yields are rising further. The inflation outlook is at about one percent. Tenyear yields are about three percent. That is not way out of line with what you would think. A lot of the action has already happened in the u. S. Bond markets. This yield spread between the u. S. And japan, maybe one should be looking more at potential upsets on the japanese side. Ifwhat happens to euroyen the ecb does straight qe . Asi think of the euroyen being the best barometer in the world of asset Price Inflation. The euro gains from asset Price Inflation. A lot of money comes in the european stocks and high yield products. In the case of japan, money tends to leave japan. It is a big move that we have had during 2013, the yeneuro going from 100 to 142. Tells you what is going on. The key factor as to where that goes in 2014 will be the degree of asset Price Inflation in the world and my overall central case would be that that tends to decrease a bit, which means that you would see the euro falling back against the yen. Doingot see the ecb anything in terms of unconventional policies. Because why . Bundesbanklly, the in the background is in control. It is not in control, but with the German Economy strong, there is no reason they will concede experimenting. Of crisise any sort or asset price deflation in the world, then yes, the ecb would go in that direction. What is the biggest risk of 2014 . There is so much optimism on the markets. So much confidence that we will have sustained growth, at least in the u. S. , possibly in the u. K. Is there something that the markets are mispricing . Markets are very expensive. There is a lot of fluff read nobody knows how much. You look at high yield reddit markets or equity markets and if we get any sort of disappointment, maybe the u. S. Economy is going down during the first half and everyone is , or, ofg acceleration course, what we are seeing in china is very important and emerging markets also. There is a range of fragile emerging markets. Any sort of disappointment or accident. The problem is that markets are all set up so much by asset Price Inflation that we could get a violent reaction in the opposite direction. Thank you very much for all of that. Over to you. Some company news. Blackrock says it has been buying up turkish stocks over the past few days. Political turmoil in turkey has been driving share prices down. Blackrock says that raised the valuation of that makes the valuation of shares more compelling. Blackrock says it pays to be brave when others are fearful. The Worlds Largest producer of aluminum is suing the london metal exchange. Madesay that the ime irrational and disproportionate changes to its policy last month to speed up withdrawals. They say the lawsuit has no merit. Deutsche bank has settled a lawsuit brought by allstate. Knewate says Deutsche Bank it securities were a toxic mix of loans to borrowers who could not afford their properties. The settlements were not disclosed. As we had to break, one of the worlds most famous Luxury Department stores is adding a abbey. F downton offering couple of mentor he canapes served in style. Offering complementary canapes served in style. With christmas just a day away, the party season is upon us. When it comes to hosting extravagant parties, there is one company that promises to deliver your every wish. The report on what quintessentially events. Imagine it and we will deliver it to read that is the motto behind one of the worlds most prestigious events companies. Hang wins in the pool. Penguins in the pool. With the the ones access, the connections, and the tenacity to get it and deliver it. Caroline hurley is the companys cofounder and prides herself on being able to do the impossible, including getting pop stars to play at your party. As soon as you start bringing in a major label, that will always be costing 1 million or more. Party. Illion on a sounds extravagant, but not for everyone. Early says business is growing and when it comes to hosting parties, people are always trying to outdo their neighbor. There is definitely an element of competition. It is fairly broad all around. And inlike to celebrate celebrating, it is a statement about who you are and how much money you have. Many of the most extravagant events are not in europe or america. The gulf states and central asia take background. Azerbaijan, in really exciting territory with lots of opportunities. It is enough to make your next party feel a bit modest. Looks like a great party. It does look like a great party. Lets get straight to our European Business correspondent. Caroline hyde, is there a party in the markets today . I suspect not. A little bit of one if you are going for the green. The bar and uzi at stake as we head towards a shorter day of trading. Stocks are holding up to our gains. Every single Industry Group is rising. We look at how the euro stoxx 50 is at the moment. I can show you a board. We are higher in france and higher in the u. S. Stoxx 50. The ftse is the upper former at the moment, up almost. 5 . Leaderboards in the u. K. Is sky. There are a couple of stocks on the move. Stock exchanges from germany and italy entirely shut today. Lets look at what is moving. Bskyb up. The daily mail is reporting that potentially vodafone is eyeing this company, saying it would be the perfect incentive for vodafone to stop itself from being bought by at t. Up 2. 3 . Regi1. Its stake in percentp almost three today, the highest in almost two years. Thank you very much indeed. Youp next on the pulse, have heard about the elevator pitch, but have you ever done one . We can tell you what hotel is turning this networking tactic into a reallife scenario. As we had to break, in the 1990s, the Backstreet Boys climbed to the top of the charts with hits like i want it that way. For their latest studio release, they are ditching the classic Record Company contracts and changing industry. Half past the hour. Welcome back you are watching the pulse these are the Bloomberg Top headlines. Weather is bringing chaos to millions who are traveling home for the holidays. A major power outage in a terminal. Have beences disrupted by strong winds and flooding. Have sadlyree people been killed loss far. This far. 47 was conceived in 1941 while he was recovering from wounds. Since then, they have been used in conflicts in hundreds of countries and have become a symbol of guerrilla complex. Forident obama signed up Health Insurance under his Affordable Care act. Many of the issues have been resolved and yesterday was the last day to sign up or coverage in the new year. The deadline was extended until midnight tonight. The middle east is a change place going into 2014. Mark joins us to break down what we can expect in the region in the new year. It is great to have you on the program and thank you for joining us. Talk about the biggest risks to the region. You have syria and knee live civil war going on. You have half the population and 2. 5 million in jordan, lebanon, turkey. Nobody wants to intervene and you cannot ignore the situation. , you know, ones year ago, you had the Muslim Brotherhoodelected government in place. Now you have a bombing in which 12 people were killed and the government is describing the Muslim Brotherhood as a terrorist organization that they want to go after. That is a growing and unstable situation. Share prices have gone down 13 in the last year. How dangerous is the situation in turkey . Not any situation like egypt or syria. It is dangerous for the Prime Minister and there are political risks that are being seen in the stock market and the currency valuation. 10 is in the last few days since it was revealed that there was a fight within the Prime Ministers religious conservative base. That is, in fact, more dangerous to him than the protesters who we saw a lot of in the summer and are important. They said a lot about turkey but were not a threat to him. This is quite serious and is his own base. I faith movements has moved against him and he has moved against them. It is not inconceivable that he gets moved out and that would be very interesting. More likely, he will win. In order to do so, he will have to purge institutions, he has first the police and he will have to purge the courts. That is very dangerous and part of the reason for the stock market change is that people are worried that he is going to go after companies that are linked to the movements. He won after secular companies after the protests. Been sold out and what happens if the Prime Minister is put out of power . What comes next . If he is out of power, that is interesting. He has been in power for 10 years and we do not know what would happen. ,e would hope that other people who set up the justice and Development Party with them, the deputy Prime Minister, those people, the competent people in the government who have been moved assigned as the Prime Minister has become the only person. The marketsike