European headquarters in london. This is what is coming up on the show. Says it will Start Building the first suv since the 1990s. The original suv was called the rambo lambo. And detroits top five, inside access to the hottest vehicle being unveiled in motor city. That is coming up later on in the program. How could you not want a car like that . I would buy adjust just for the name to say i have a rambo lambo. We begin with the News Conference that europe is waiting for. Francois hollande is set to give a Major Press Conference later today outlining his political priorities. Of course, the elephant in the room is his alleged affair with an actress. He is polling higher after those allegations surfaced. Caroline hyde is outside the palace. Difficultg to be very for him not to talk about what Everyone Wants to know, what is going on in his private life. You are exactly right. Politics in focus. Francois hollande will be walking into the policy into the palace this morning. Parliament, a member of the socialist party, and also on the finance committee, thank you for joining us. This is a crucial press conference because he will talk about the economic policies he once the layout. Willu think the questions be a bit distracted, talking a bit about his private life . In france, people outside the country are surprised but we are not very interested. I would say french people do not care about the private life of political persons. I think this will be sweep golf very rapidly during the press conference. More of a focus on Morning Headlines to dominate in terms of economic policies. If you are in france right now, what can you expect resident llande to president ho be outlining today . Keep expenses for the public sector. I think it will be a very important message. Something that is asked for by the business experts. The other thing is to confirm a betterants to give environment for companies in france and help companies to create jobs. I think that will be a very important part of his speech. Would cutady said he 50 billion euros of spending. Where . This year, france will cut by 6 billion euros. That is the first time in france over the last 25 years. It is a big change. A real big turn for our policy. What parts of the economy will be cut back on . Frictions,be social what we want is to protect our social details. That is very important. Protect for everyone in france. What is not needed . I believe there is a lot of relativity a lot of productivity with the administration. In the u. K. , it has happened for a long time. Now we are starting with thise administration. A lot of things have artie been decided for the budget for this year. I am sure there will be even more on these cuts for spending. What about businesses . What charges will be cut . By 20are already cutting charges ofos the companies in france. It is a huge decision. The chargesby 7 , on companies. It is huge. I do not know if the president will announce even more, but we have artie decided we have already decided and we are putting in place issues for our country. And it will be trusted. He will stand by it will be trusted. Something that is very important. We are also very keen on reducing the deficit, the debt. Andre cutting expenses ectinging our and prot our systems. Thank you very much, member of the socialist party, member of parliament, member of the finance commission, saying that those questions that will come his way about an affair will be swept underneath the carpet. She is a socialist. A lot of people say that. I read the biography of the ex wife and she said, times have changed in france. People knew, but nobody really cared. Over the last six or seven years, there is the internet. People want to know. The game has changed. We will find out a little bit later how much the game has changed. 3 30, that press conference will be taking place. In the meantime, we will be staying on top of this story. We will continue the conversation in a few minutes when we talk with a professor of political science. We will get that story and we will get mario montis take on all of this. Dangerous when we talk about things that interest everyone. S have found a home. It is the latest tech company to be snapped up by google. It is a vermonter, amongst other things. Ryan chilcote is on the hot story. What is next . Why does google want this and why is this setting the tech world alight . What is worth 3 billion . It is the internet of things. A have two products. The first one is a smart Smoke Detector. I know you have seen it. It is available in the u. K. Since you interviewed the ceo, it is something you can Purchase Online for about 100 pounds. It basically adds wifi into your Smoke Detector so that you can monitor your Smoke Detector from your smart phone, your computer. It also allows it to interact with your other devices, like the nest thermostat, which is there other product. You can monitor it because it is webenabled. It also helps you save money. The way the two interact, if the , ite detector detects gas will tell the thermostat to turn off your gas boiler. Pretty handy. Who would have thought thermostats would be hot . Turns out google things they can, especially if they are smart. More about this a little bit later on. In a related sector, Time Warner Cable has rejected a 61 billion acquisition of charter communications. The bid is backed by billionaire john malone. Manus cranny joins us with the details. That inadequacy is a sum total of approximately 30. Charter is backed by john malone. Liberty media, 45 of charter. Historically worked for Time Warner Cable, tom rutledge. Trying to do a deal with a 30 spread. That is what is on the table. Is what Time Warner Cable wants. What is up for grabs . 12 million video clients, cable assets in l a new york, and dallas. They have had conversations on several occasions. We did not put our house up for sale. We got a knock on the door and somebody was trying to lowball us with an offer. When it comes down to this retracted. Period ofotracted negotiations, they are going straight to the shareholders that this stage. We caught up with one of the big thinkers over at deloitte. He is the head of tech, media, and telecom. He said, we get this idea that they will start dropping cable subscriptions. 50 Million People out there will have two or more paid tv subscriptions. We are going to double up, if not triple up. Which sort of blew my mind. And then we had a chat which said the Cable Operators need to get together. You need to have consolidation to deliver efficiency. Back to you. Thank you very much indeed. Shares are falling even though the internetonly retailer posted sales that beat estimates. Why the selloff . The share price has gone up quite recently. 150 in the last 12 months. The story continues. Highspeed is dead. Long live the internet. It is about positioning. A company with no exposure to high street has seen sales jumpingnd asos keeps over them. That is a oneyear chart. That makes it a bit more special. And that is the point. Yesterday, the shuttering of the high street, a big part of the Retail Establishment effectively walking away. This is a business that has the internet story right. Others are learning quickly. How does the environment change from before . Their target demographic is something francine and i have been talking about. Their target is twentysomethings. These guys dont have the priorities they do not have to spend on the kids. And you can go home for longer as well. The bank along and a of mom and dad is still strong. I think it is fascinating. We do not have time. We wish we had time. Thank you so much. Have you ever bought asos . No. Have you . I tried. Lets leave it at that. Here is what else is on our radar. Lamborghini lands to introduce a suv in 2014. It will be the first lamborghini thee the rambo lambo in 1990s. It is part of the brands push to expand the united states. Credit suisse has told junior Investment Bank junior Investment Bankers to avoid the office on saturday. Others are implementing similar policies to soften the image of early wall street careers as endurance contest with 100 our weeks and no time off. Ronaldo ended lionel run by claiming the ballon dor last night. Next, Francois Hollande faces the music. He is set to give a major News Conference today at the height of what could be the worst week of his presidency. Does he stay the course or use the moment to launch a significant shift in policy . We will debate that next. Later, we will be joined by mario monti and ask him about the countrys economy and the health of the eurozone. Todays News Conference from Francois Hollande comes during a tough week of his presidency. This is how we communicate during the break. Ofhe faces a crucial task convincing france and the world that he can be trusted, not only at a political level, but also his personal life. What will he say . Joining us now to discuss this story is a professor of political science. Good morning to you, paul. Clearly, everybody is going to want to know about his personal life. Tot can the president do downplay this story . How do you think he is going to treat it . How will you approach this problem later today. It is very difficult. This is a bit of the script that was not there originally. Planned wasginally the sequence of his new years message almost 10 days ago. This would be followed by this long plan for a press conference. It was already the bad jobs figures at the end of the year that prompted this rather about turn that was given in a new years message. The idea was that this press conference was going to follow up on that. Now you have another aspect of the story that has surfaced and even though the initial reaction has been the first traditional one, in france, that he try as much as possible to steer away from all questions involving politicians personal lives, apparently the events over the weekend have shown that there is going to be a lot more curiosity and fallout from this story. Is this the perfect opportunity for Francois Hollande to make more of an impact . He has more of the world watching. Not only europe, but people who were maybe not that interested to see about his political life. He could do a big bang on the economy if he were to choose today to launch a very strong performance. Strongaunch very reforms. I am not sure where they are watching, where they wanted him to watch in the first place. The prognosis of the economic and political situation in littlechanged by the impact of this story or not. Indeed, one big challenge that he does face, and that is not something that is settled by this new aspect of the story, is the fact that after his new years message, there were still a lot questions raised as to whether he had this political capital, the means, the leeway, the actual Political Support from the people who he appointed to his government, the people who were elected in his name in the National Assembly to effect this about turn. A lot of commentators have been wondering whether the policies are going to follow up to the declarations. Unfortunately, that has been a question that has been raised for almost 20 months of his presidency. If this really corresponds to whateepheld vision of needs to be done for france, why was not why was that policy not implemented from the start . Why was it not the main theme of the campaign that he ran on . That did run on the fact he was mr. Normal, that he was not nicolas sarkozy, that he was not all about the bling. It turns out that his life is not quite as normal as most people would have first assumed. One of the things that has also helped him out despite his appalling poll rating is the fact that the party has not had a serious leader. Do you think what is happening now in his personal life could make life easier for the opposition and strengthen the opposition and start to see the opposition putting people in place, maybe nicolas sarkozy, that could run against him . The opposition faces problems that are as that are, as we know, of their own making. If france will on and his party were able to exploit this absence of clear leadership facing them, that is maybe not something that is going to last. We are looking at the results of the forthcoming municipal and european elections. The results of those confrontations are going to weigh heavily on minds in the next few weeks or so. It would be hard to see how personal problems adding themselves to the wellknown general policy problems in france are going to benefit the opposition if it does not overcome its own demons. Certainly, the additional trouble for mr. Along mr. Hollande does not amount for a perfect goal for the opposition. Thank you so much. Of former professor politics. It is time for todays hotshot. One of the best videos from around the world. The car rally roars into the chilean desert. Cars, trucks, and men speed cross mountains and deserts in south america. The rally will finish on saturday. Only for the brave. Welcome back to the pulse, live from bloomberg television, radio, and streaming on your phone, your tablet, and bloomberg. Com. Ferro manus cranny will tell us exactly what is going on. Bankeraustrian central saying that germany could row 2 , austria could grow 2 . We had a bit of a reprieve during the first hour of trading. That reprieve has given way. Even those of the comments that are coming out certainly begin to question the stability of the valuations. That is what is going on. Keep an eye on emerging markets. As i said different scene, one of the bigger backdrop stories is the move in emerging markets. One of them is dollarrand. A couple of Different Things going on here. You might get more strikes in south africa. That is the economic backdrop. Secondly and more importantly, it is about what is happening emergingmarket currencies per se. A fiveyearing at low on dollarrand. The aussie dollar is down against the dollar. Again, this is all tied back to the view on tapering. Charles plosser and mr. Fisher speaking today and they will drive the tone and intonation on the quantitative easing and tapering debate. I think the subplot is much more about what is going on in terms of the timing of quantitative easing and valuation. The timing, according to Goldman Sachs, will stay at 10 billion per month. A lot of the papers today are citing valuation concerns. I did not get that strong sentiment. Futures just flat in the u. S. Back to you guys. Forp next, an automobile america. Lamborghini will Start Building the first suv since the 1990s within three years. Good morning, everybody. Welcome back. Youre watching the pulse. The bank of england has an inflation target, which is 2 and we are there. For the First Time Since 2009. Yeah. We finally made it. Is it a good thing . Well wait and see. It is going to make things interesting for mark carney. Sterling selling off on the cable rate as we speak. It did spike earlier on. Starting to reverse a little bit. We are there. Yep. It is a touch below what we were expecting. We were expect 2g. 1 . Now the Bloomberg Top headlines. Francois hollande is in the hot seat. Allegations of an affair as he elivers his 2014 agenda later. His popularity rose from a record low. House and Senate Lawmakers have agreed to a 1 trillion bipartisan bill to fund the u. S. A german brewery cartel has been fined more than 100 Million Euros for fixing the price of beer. Five german brue brewries and seven people were fined. On avid tweed joins us more that story. Anheuserbusch imbev msm this is the biggest beer maker in the world by sales. It wasnt fined but only because this was the company that was the whistle blower on the cartel and it blew the whistle about 18 months ago. What turns out has been shopping that representatives from some of the biggest breweries in germany have been getting on the phone and getting together to work out what the price of 20 beers was going to be. That was a specific example. They agreed to encrease the price by one euro. You mentioned the biggest privately owned brewer here in germany. Veltins. Some of the most famous beer in all of germany. The amount of the fine isnt terrible but the reputational damage is severe. Particularly given the fact that this market here in germany is really declining. 25 . The margins in these markets are absolutely paper thin and beer makers today simply cant charge enough for their beer. No froth in this market. David i. Also going to make a bad joke. It is a tough life for david to have to try all of these beers, but you did try to them and talk to us about how much it costs having a beer in paris compared to london. If anyone in paris wants to have a beer before this speech coming up later from Francois Hollande, they are going to have to pay 5 euros 75. In germany the cheapest place to buy a pound of beer is the czech republic, just 82 euro cents for a pint of beer. Thats why it is the party place. David, thank you so much. David tweed. Now the autoautoindustry closes out one of the best years on record. Ryan chilcote joins us now. This is the first time that iats c. E. O. Sergio marchionne has talked. This is the first time we have seen him as an emperor. He spent the last several years building the empire and now is intercept on using the products he intent on using the products he has in the stable. They have a new Jeep Cherokee out. Surprised everyone. 13, they sold almost 750,000 jeepses. They think this year and next year they will hit the 1 million ark. It is one of the most profitable. They want to capitalize on that. Have a listen. We need to hit that number across the world and see how far we can take jeep. It is an incredible brand and has incredible international potential. We need to take it there. That is the first todo listmony agenda. The second is the development of to bring it back. Bring it back, alpha romero. It was supposed dom in 2013. There was some talk this y