you are watching "the pulse." i'm guy johnson. francine is in the building, just not on set. she will be back. let's get straight to our top story. oil trading at the lowest level in four years. this the day before opec meets in vienna. a deal to cut output looks increasingly unlikely. saudi arabia's oil minister has said that tumbling prices will stabilize and there is no need to reduce production. nexen go, venezuela and russia have als decided not to take action. the boss of rosneft has the same view. he has been speaking to ryan chilcote in an exclusive interview. he says his country can $60 aand prices as low as barrel. >> we decided to monitor oil prices over the next year. possibly everything is necessary. industry was privatized a long time ago. owners andrivate peculiarities to working in russia. like the climate and logistics. russia's oil producers will .eact to market demand efficiency is the main factor of determining market supply. if the demand and the price are adequate to the amount of investment, we are prepared to work with that situation, and will work with that situation. idea that russia will -- to $300,000 a barrel 300,000 barrels a day in re turn with opec, what is that? >> a decline in the price of oil, even below $60, isn't so dramatic for us that it would require an immediate cut. ceo speaking exclusively to ryan chilcote in vienna. there are some suggestions to why we may not get a supply cut. we may hear from opec that the cartel will stick more closely to its pre-decided output target, which could translate into some kind of cut. whether we get that far remains to be seen. ryan chilcote monitoring the situation over the next 24 hours. let me take you to the other big story we are monitoring this morning. presidentmission jean-claude juncker has been speaking to the european parliament. he has been unveiling a plan to fund 315 billion euros in new projects. tois another attempt jumpstart private investment in europe. let's get the details on what we know and the questions that need to be answered. hans nichols joins us from berlin. we knew the parameters of what was going to be expected here. that reallyget here is going to make a difference? >> that is really the big question. what we got from juncker here is a confirmation that their ratio is 15. for every 15 euro the eu puts in, they think they will be able to do and infrastructure project with total price tag of 15 euros. this is the argument against it. the argument contra to the higher leverage argument is that the eu will be assuming the risk on these infrastructure projects. if there is a catastrophe or something that goes wrong with these projects, it would be the eu that would be the first of the wiped out in terms of investment. look at the numbers. 16 billion euros in guarantees. out of that, you have about 8 billion coming out of current accounts. there is no new money that is going to be spent. you have 5 billion from the european investment bank. that gets you to 21. you multiply that i 15, it gets you to the 350 number. will countries like france, italy, complain that this isn't enough new money? do they want to see new money injected into the economy? are we going to get caught up in this debate over budget deficits ? november 30 is the deadline on that. that is when the eu has to decide whether or not budgets are within line. france and italy are going to bust. we will see whether or not they use this spending plan to pick a fight with brussels. in terms of the timeline on this, this is something that is going to be a slow burn. even if you assume a high ratio that juncker is talking about, it is going to take time to get there. don't even have this fund up and running until mid-2015. this is the initial 21 billion. then you need the crowdfunding. here is what optimists would say, that banks have a lot of cash on their balance sheet. we saw that at the end of october. the goal was to get that money off the balance sheet's and into projects. you can see that starting to happen. again, even you few look at the imf, none of the projections indicate that there is going to be that much demand. so we are talking about public investment, public infrastructure projects. it is hard to see how you get to that 15 multiple with public investment projects. those are the numbers, we will see what happens. >> we have been here before. there are a lot of savings in europe, just not in the right place. thanks very much indeed. we are going to go back and listen into jean-claude juncker once again. in the next hour, he is going to give a news conference. the kind of questions that hans has been answering -- asking, will hopefully be answered by the commission president at that event. we will listen into what juncker has to say. what else is on our radar? it is a busy morning. pro-democracy demonstrations in hong kong have clashed with police as the police tried to clear a protest site. police in riot gear came prepared to remove barriers along nathan road. wo student leaders were among those detained. public support waning. a recent survey found 58% thought the government should take action. ubere car booking company is close to a round of financing that would value the firm at $40 billion. that would be more than double its valuation from the last round in june. situationse to the say uber is raising more money to finance international expansion. it is hitting a few roadblocks in europe. google is facing multiple challenges from eu regulators. it could potentially be broken up as eu lawmakers vote to consider splitting search engines from commercial activity. regulators will also tell google to apply the right to be forgotten to websites beyond the european union. that brings us to the question of wednesday. is google too powerful? we are more in love with google in europe than we are in the united states. we use it more than they do in the united states. has google got too big? should it be split up? is this something we should be thinking about seriously? send us your thoughts. let us know what you think. are a thomas you cook shareholder, you should pay attention to this story. you may need to take a holiday. if you've been in for the last couple of years, you have done very well. share prices down today quite substantially. what is going on? we are going to find out. ♪ >> welcome back. you are watching "the pulse." we are live on bloomberg television. of what mr.e case juncker is doing. let's get back to one of today's top stories. the next big move to kickstart growth. jean-claude juncker has been unveiling the details of what he things is a 315 billion euro sector boost private investment. how will this be different from other attempts to spur growth across the eu? let's bring in martin look. that morning to you, martin. is it enough? let me ask you a simple question to start with. martin, can you hear me? >> i don't hear you, i'm sorry. >> let's come back to you in just a moment. we will fix the sound and come back to martin in just a moment. what we have had here from jean-claude juncker is a plan to crowd in private sector money and bring it to bear, to drive investment in europe. the idea is fairly straightforward. in some ways, what we are looking at here is seed money. in take the first loss to allow other money to come in more comfortably. will it be enough? that's go back to martin lueck and ask him that question. 315-claude juncker thinks million euros is going to drive the european economy forward. is that number big enough? if business or is achieved at all, it could be big enough. it could kick off some of the eurotments to lift the area to a higher growth trajectory. however, there are a number of obstacles to that. as you mentioned in previous reporting, there is this big doubt if the leverage of 15 can be applied to these numbers. if you look into the details, it looks a bit more like financial alchemy tammy. i think the better thing is to look at the broader idea and take it from there. it is a good thing that europe is moving to its growth orientation. >> what is the realistic leverage number, do you think? >> this is very hard to say. on previous programs, the european investment used to calculate even more than that. they have never achieved these numbers in practice. it is hard to tell also because the idea of taking the first losses on the part of the eib and the eu as a whole is a relatively new idea. this idea of leveraging a fund that is now being created has not been tried before. it is very hard to tell where the realistic leverage will be. >> this is a story of trying to savings piles, which exist in europe, they exist in germany, to be invested into european infrastructure. is this the right way of tackling the european problem? is this what we need? andave a structural problem a cyclical problem. if we can move the savings around, maybe that will provide the solutions to those problems. how realistic is it that this money is going to start to move, and how long do you think it is going to take? >> my view is that more than anything else, the european picture needs more optimistic stance. that means that companies need to see more realistic sales prospects within europe, and also growth. if this were to be the case, even an initiative like the younger plan -- the juncker plan can have an impact. that would mean that private individuals, companies and households would be more willing to lend to the real economy, would be more willing to invest in infrastructure. i think the kickstart needs to come from more optimism on the demand side. more publicobably money needs to be invested before the private sector is a significantvide share on its own part. >> so governments need to put more money in. what about the idea that governments should say to the eib, we are not worried about aaa status? >> this obviously could change the picture quite a bit. i would expect lots of resistance on the part of some northern european economies here. hasaaa status of the eib been almost sacrosanct, one of the most binding principles here . another principle was the eu budget. so that only 8 billion out of the eu budget could be deployed in this initiative, which makes it very generous and very optimistic assumption that it billioneveraged, that 8 on the part of the eu plus 5 create from the eib can a total sum of 300 15 billion. >> so we need to change the rules on a number of fronts. as a final thought, the ecb is looking for assets to buy. if we could put more money into the eib and change that aaa status, do you think these would be assets that would be useful for mario draghi to purchase? -- one waybe one day we could end up with a monetary policy story and a fiscal policy story working hand in hand. >> that is right. behink this potentially can part of the future policy mix within the eurozone. we are seeing that generally fiscal policy is becoming more expansionary, more willing to fund growth initiatives. at the same time, monetary policy is likely to remain very accommodative. if we see the third element coming in, more willingness to put structural reform into place to create a longer-term growth enhancement, these economic policy elements could work together cooperatively and lift europe to high growth. is one of the options the ecb is looking at. >> on a morning when we are covering two big stories, one of which is what jean-claude juncker is doing and the other which is what is happening in which is the bigger sorry for europe this morning? jean-claude juncker or the fact that we could be looking at lower oil prices? flax i think they are -- >> i think they are both extremely relevant. , if youker initiative drill into the details, you will find a lot of obstacles, but it story and thethe hope of providing a better prospect for the euro area. the opec initiative is very important in order to have an impact on the short trajectory of inflation in the eurozone. i think they are at the same level in terms of importance. flax good thing and undertake, thank you very much indeed. joining-- martin lueck us. next, good by ms. green. thomas cook par ceo makes an unexpected exit. that is probably the only reason why the stock is tumbling today. find out when we come back. ♪ >> welcome back. you are watching "the pulse." we are streaming on your tablet, your phone and bloomberg.com. i have all kinds of airline jokey or. investors are punishing thomas cook this morning. the travel company has missed estimates and its ceo has quit. anna edwards has been tracking the story. let's deal with the ceo. >> leaving the business after just two years. she was credited with a big turnaround of this company. was 14 pencece when she got into this business. it has been as high as 180 pence in february of this year. now it is down to 111. why exactly is she going? a little bit unclear. we don't know where she is going. she said in a statement today that she would leave the business when she thought the challenge was over. she says that time is now. call, theference company has been talking about going from a transformation stage into more of an implementation phase. as former coo taking over the ceo, he has a lot of travel insperity and's. -- travel experience. he was credited with turning around part of the business. -- theceo of the ceo u.k. and continental european part of the business. she is somebody who is very driven. she has talked about when she was awarded the business woman of the year. many talk about how she didn't need very much sleep. that became something that she was known for. mayexplained to us back in why she is made of such tough stuff. >> when you do transformations, you need to things. and tonslots of focus of stamina. i've got both. you can't give up too early and you have to get everyone bought in. >> made of pretty tough stuff. >> for certain. what kind of company is she leaving behind? there has been a huge pop in the share price. what does it look like? >> we don't know where she is going and that will be interesting. what the business looks like, they are saying that they are seeing a tougher trading environment, which means the full year 2015 outlook for growth is more measured. they are expecting further growth this year at a more moderate pace at a time when revenues came in below estimates. eps that are then estimates. net debt brought down year on year. at least in that sense, things seem to be on a better trajectory. >> thank you very much indeed. coming up, laying tracks for economic expansion. we are going to talk to crossrail. we have also got u.k. gdp. this is the second generation coming out. we will see you in a moment. ♪ >> welcome back. you are watching "the pulse." u.k. gdp is out. we have a 0.7 rate. this is the third quarter number. that matches the initial estimates we had out. it looks like that number fairly stable. quick look at the pound to show you how hit is reacting to the data we are getting. not a great deal of movement. tradings where we are on the cable rate versus the u.s. dollar. let's talk about the u.k. economy a different angle. 's rail transport network is undergoing its largest expansion since the second world war. crossrail is doing its share for the u.k. economy. the project has created 350 apprenticeships to date and looks to remain on track by encouraging businesses to join. joining us now is terry morgan. morgan.ning to you, mr. we just had the u.k. ddp number out. zero point seven, fairly respectable by international standards. let me ask you whether you feel that infrastructure spending is the key to getting potential growth here in the u k to continue to take higher. i think it is a positive change in terms of a priority that has been put on infrastructure investment. we will be spending 15 billion pounds inside the u.k. economy. we are already seeing around london huge redevelopment opportunities that come with railway investment. we've seen a lot of people who were unemployed join the program. as you rightly pointed out, we set ourselves a target a number of years ago to have 400 apprentices by 2018. your number is correct. we are very confident that we will breach the target we set for 2018. it is a very positive market. we are building up a great project on time on cost. inare creating a legacy terms of skills. >> how do we keep it going? we have the skill set that we built up as a result of crossrail. there are other projects around the country. how do we maintain the momentum? >> we have two. the program we are doing is a new railway. when you look at the skills behind it, it is for infrastructure. before high-speed 2 comes on the agenda, we have a big program for utilities on water. the nuclear program coming along. there are a number of big projects. >> i was talking about potential growth. the u.k. economy is beginning to be an economy that could be effected -- affected by a squeeze. we can't get above the growth rate we have now without driving inflation higher. how big a difference in terms of getting up to that higher-level will infrastructure be? spready is that to throughout the rest of the u.k.? >> i think the important thing to realize on a project like crossrail -- as you rightly say, the railway system will be based in london -- 60% of what we are spending is outside the london area. it is going across the u.k. as i said earlier, 95% of what we are spending is being spent inside the u.k. economy. in terms of relating that investment to the skills agenda, it is so important that we invest in young people to ensure that we not only invest in infrastructure, but create opportunities. in brussels this morning, jean-claude juncker, the head of the commission, has been laying out the plan that he hopes will crowd in rabbit sector savings into infrastructure projects. you look across what is happening in the u.k., what is happening in europe, how do we get that savings story to be engaged with the infrastructure story? you have experience in dealing with this. what is happening in the u.k. and across europe as a whole? story ofonly take the the crossrail experience. when we had this program approved, it required public-sector backing and funding. having said that, two thirds of the funding came from londoners. there has been a private sector engagement. in truth of the matter is, terms of the business case, it is very strong. when you look today at what is theening, 50% of development applications being made for redevelopment of ,roperty in london right now crossrail is the predominant reason for that. that is the great story that is now unfolding on crossrail. i'm interested because we are on a day when we are talking about this across europe. europe has a huge youth unemployment problem. is crossrail a shining example of how you can maybe start to target youth unemployment, start to raise the growth rate, start to have a meaningful impact on economies? this is an example of how infrastructure can have an effect. me, people should look at what we have done. we insisted when we placed our contracts that our contractors would invest in apprentices. we were very specific about that. we also built an academy in east london, an area where you are talking about generations of people who have not had the opportunity to work. right now, of our apprentices, two in five came from a background where they were not in an employment background. you can make a difference. >> what were the big take away lessons of how you got investment into crossrail? quick were to give a lesson on the key things you need to achieve, what would they be? on huge infrastructure projects like crossrail, it isn't just about the railway itself. importance is understanding the impact it is going to have on the economy. by 2020, we will have 5.5 billion of gdp benefit to the economy. people will have confidence that with a railway, you can build. 55,000 new homes will have been accelerated. we have also made available almost 3.5 million square feet --accommodation and resale retail facilities in london. it has a big impact. once you start investment, you have to continue. infrastructure investment create economic value. >> terry morgan, thank you very much indeed. right, let's talk about the bloomberg top headlines. the police officer who shot and killed an unarmed black teenager in ferguson, missouri has said that he feared his life the for he fired his gun. officer darren wilson says he felt like a five-year-old trying to restrain a wrestler when confronted. protests over the decision not to charge wilson over the shooting have entered a second night. investigator leading the search for a missing malaysia airlines flight says he is confident that a deep-sea sonar search will find the plane's wreckage. at a briefingtold that the search methods will be effective in locating a deadly field. withoutch has continued success for 260 days. bush says low interest -- presenting the annual stability report, bush says it is keeping a close eye on real estate and some investors should be ready for a market correction. >> investors should prepare themselves for potential reversals from the previous crisis that indicate market sentiment changes. there might be pockets of illiquidity in the financial system. every investor has to be aware of this possibility. >> coming up, google under the microscope. it might not be a happy thanksgiving for the u.s. tech giant. european parliament good move for a spin off of its search engine. details of that story after the break. ♪ >> welcome back. you are watching "the pulse." it is a bit of a big week for google in europe. the european parliamentary ofates a possible breakup the biggest search engine company. here with more is caroline hyde. this move within the european parliament to have a vote to break up google, that is starting to attract attention. >> from the united states in particular. this is not about competition anymore. there is potential to see an unbundling of services within search engines. they don't name google by name but this is being thought about by the european parliament. u.s. backlash is building. not to, butone, three open letters from u.s. politicians citing the proposals targeting u.s. tech companies, raising questions about the commitment to open markets. this could be a real problem for eu and u.s. trade going forward. interestingly, there is backlash coming from european lawyers themselves. out that forted europe to ask a global player such as google to adapt its structure would be europe overplaying its hand. another professor says that the parliament is attempting to influence illegal investigations. i might add that the european parliament hasn't decided what the final statement will say, what the final assembly will vote on. we understand that a second version doesn't include the ofds "unbundle" or in terms that, they are just saying, let's get tougher. >> there is a big investigation going on, which is a little like what has happened with microsoft and could have fairly meaningful impact anyway. this may be goes just a little bit, or maybe a little more little bit further away from that. >> they are backing off. i think this is all about frustration. for five years, the european question -- commission has been taking questions about this. they seem to be making no clear steps. they have had to put off any agreement to settle with google. google put some options on the table. now, the new head of the european competition chief, she said she is listening once again to competitors and wants to hear from the rivals. members of european parliament are trying to force the discussion, trying to inflame -- and they have. now they are backing away from those comments. -- eu digital commissioner previously, he had been a critic of google. he has now said, any breakup of the google wouldn't happen on his watch. meanwhile, a member of parliament who proposed this whole discussion about unbundling search engines has stepped back too and said, google, any unbundling should be a last resort. hasink the u.s. criticism put the backup. they be they wanted to force the issue. for five years, people have felt that google have been preventing their own competitors from being popularly displayed. they want something done about it. >> google is incredibly popular in europe. caroline, thank you very much indeed. we will continue to watch this story very carefully. question this morning, do you think google is too powerful? tweet your thoughts. a few of you have been doing so already. split,search should be search/ranking results are googleated to reward advertisers and punish others, says one contributor. another saying, european politicians hate google that much, do they bing instead of google? plenty more still to come. let me talk you through some of the other company news. hsbc have beennd sued in new york over claims they conspired to manipulate prices for precious metals. standard bank and a metals unit of ba were also sued. a complaint filed yesterday in manhattan federal court says the companies used inside information to profit from price movements for the metals using projects ranging from jewelry to cars. they claim it is the first class action lawsuit of its kind in the united states. sony is developing a watch made of electronic paper. emphasizing style, it will be made from a patented material that allows the entire surface area to work as a display and change its appearance. ceo this year put a special division under his control to fast-track the missing products. online fashiont retailer has reported its first earnings as a public company. the company said it expects to end the year slightly profitable after posting a smaller loss in the third quarter. full year revenue is anticipated to grow by as much as 25%. bus powered by human waste has hit the road. find out more. we talked to the company behind it. interesting stuff. very interesting when you realize where it all comes from. you will be surprised. ♪ >> good morning, everybody. you are watching "the pulse." we are live on bloomberg television. energy we are new looking at how food and human waste can be valuable resources. the arrival in britain of the first bio bus is a case in point. gen eco is a company that converts waste into gas that is turned into fuel that drives the bus. you need a driver as well. joining us now is the general manager. good morning. very nice to see you. how does it work? give us the chemistry and the engineering. >> very simply, what we do is transform waste that historically would have gone to landfills -- primarily, what you flush down the toilet. in our case, 75 million tons every year. plus around 35,000 tons of food waste that is collected by households and thrown away by supermarkets. bio-ansform that into a methane gas and a fertilizer that we recycle. the technology behind this is very clever. it is called anaerobic digestion. we have these huge tanks heated naturally occurring bacteria start working on the organic matter to break down the organic matter to produce the bio-methane. >> is it economic at the scale you are at? >> it is. the work we are doing now will help to scale this up. >> what is the limiting factor in terms of scaling this further? limiting factor in our case is the amount of raw material that we have. it is about the sewage and the food waste that we process. given the tonnage is that we have, we are producing around 17 million meters cubed of bio- methane, which is enough to power 8300 homes. >> given more, you could do more? have overengland, we 17 million tons of food waste that is either burnt in incinerator's or sent to landfill. we've done some calculations that show all that material instead of going to landfills, we could produce enough bio- methane to supply 10% -- >> why has that not happened? is that a target? is that something you think is achievable? very muchlly, i would like that to happen. hopefully through the work we are doing, we hope that folk will wake up to the fact that doing this is not only helping, it is incredibly sustainable. 30% more to sustainable when compared to diesel. in creatingtime, digesters within the u.k., you are encouraging a industry to grow, which can help the economy. >> how competitive is the space right now? guy on of a few weeks ago who was involved in powering a sainsbury's. how many other companies are doing this? of food stockenty available, so i think at the moment, it is not as competitive as it could be. as more and more plants get built, the space will become much more competitive. theou talk about refining science. i have done a lot of work already, but how much more efficient can it become? you talk about naturally occurring bacteria. can we artificially stimulate this process? having anssed with incredibly talented group of individuals who have helped make ins process that we operate the most efficient way. we are quite keen not to introduce external sources. atare very comfortable having a sustainable process that uses natural resources. >> we look forward to hearing much more about this. thank you very much indeed, mohammed saddiq, general manager at geneco. what have we got for you? first, bottom of the barrel. we are going live to vienna to bring you interviews with the ceo of rosneft and the uae oil minister. opec trying to decide how it is going to do with falling prices. then we are going to talk about the man with the plan, jean-claude juncker has unveiled a 315 billion euro project to formore investment infrastructure in the eu. how realistic is his plan? he is going to deliver a press conference at the european commission. we are going to think that press conference and hear some of the questions. hopefully we will get some of the answers. the conversation. printing the defining a fullback. talk to a moment. ♪ >> the bottom of the barrel. oil slides as expectations dip that opec will deliver supply cuts. >> the ceo of russia's largest oil company rosneft says his country can cope with lower prices. reveals aaude juncker plan that he says will kickstart european growth. >> good morning to our viewers in europe, good evening those in asia, and a very warm welcome to those just waking up in the u.s. i'm guy johnson. >> i am francine lacqua. this is "the pulse." live from london. >> a day before opec meets in vienna, a deal to cut output looks unlikely. saudi arabia's oil prices says tumbling prices will stabilize. mexico, venezuela, and russia have decided not to take action. let's get the latest from vienna. ryan chilcote, you've been speaking to the uae oil minister and the boss of rosneft. give us the takeaways. allhe key take away is that of these talks come of, has yielded an agreement to watch prices. to watch prices as a far cry from an agreement to cut production. if you think about the meeting we had yesterday, 4 countries, saudi arabia, venezuela -- both of which are in opec -- mexico, and russia. if there are 4 countries that have the ability and stomach to cut prices, it is those countries. they do not come to that agreement. to get an understanding of why they did not, i spoke with mr. sechin, the ceo of rosneft. i started by asking him to explain the logic for not cutting. think a supply cut would raise the price of oil sufficiently to accomplish the task? you need to look at the fundamentals and the subjective factors on the market. are that theres is an overproduction of oil. supply exceeds demand. that is not so critical that it could force prices down in the long-term. of the fundamental factors is dropping support for the dollar. and i would list the increase of shale oil production in the u.s. as a factor. however, for how long, that is something we need to look into further. we simply agreed on additional monetary and new consultation. that's important for all of us. allow us toing will formulate new proposals to react to the situation. >> mr. sechin also said that russia could sustain an oil price below $60 a barrel without any immediate need to cut. he did say they would be watching the market. it was those comments from mr. sechin that have influenced oil prices. we saw the price dip to a four-year low yesterday on the back of those statements. >> opec still has to vote. is there now no chance that they will cut? >> i am not going to say there is no chance. we've had 2 useful pieces of information this morning. naimi, the oil minister of saudi arabia did speak. he said no country should cut because the price will stabilize. has theountry or person ability, it is mr. naimi. i just came back from a meeting with the oil minister of the united arab emirates. he said that this glut, he said was an oversupply, was not really produced by opec. it was produced by new players, producers.shale he said it is for them to cut if they want a reasonable price going forward. the sense that tomorrow when they are going to meet, you , you get be sure the sense that they do not have the appetite for a cut. wants to do that, he can do after the meeting tomorrow. >> ryan chilcote in vienna. >> let's talk about what's happening with the commission. presidentcommission jean-claude juncker has been speaking to the parliament. undunveiled his plan to f billion inn-- 350 new projects. hans nichols joins us from berlin. did juncker's announcement match expectations? >> juncker is giving a little bit of breathing room to plus t hat 315 billion number. he starts with 5 million from the european investment bank, 16 million from the european union. only 8 billion is hard money. that gives you a 15 times multiplier to the 315 number. juncker wants this up and running by june. he said any additional contributions to the core 21 againstfund won't count a country if it is concerned about stability. if france or italy is complaining that the eu is not doing enough, juncker has given himself a vehicle to take that money from those countries, put it into the magic bank account, and multiply it by 15 and get higher numbers. he's talking about new schools hospitals in france, electric vehicle stations along the highway. they are getting down to that the eu is going to take the risk is aspects. they will absorb the first losses if there are any. then they hope to crowd in private money. angela merkel agrees with it in principle. wants just said she to see specific projects. right now we need hard projects and private investors. >> hans, the ratios are pretty incredible. is very optimistic. the french and italians, i suspect, would be in favor of more upfront capital. real money to invest in these projects. landscapee political looking like? schulzwatching margitin at the european parliament. >> the germans will be under pressure to contribute. the french and the italians who might have budget deficits, there challenges may be how do they criticize the program as not being big enough without contributing to it. i don't want to call this a masterstroke by juncker. he is allowing himself a defense to future criticism that the initial seed capital was not big enough. he can always say countries can contribute. they will get this 15 times multiplier effect. 8 15 times, if he went with the number comes down sharply. >> is about execution. to appease this just europeans so that they do not left whenight or too the next elections,? aspect withlways an brussels. they want to show progress. they get the problems and they have a plan. the flipside is there is not a huge appetite in national budget meetings to contribute more to brussels. as you know from the debate in london. even if you have contributions based on gdp there is never a lot of appetite to give more to brussels to solve these problems. juncker describes this as the third prong of attack on unemployment and slow growth. we've had mario opening the printing presses. the banks are in good health. they need to start lending. juncker hopes by assuming some of the risk they will get there and we will see big infrastructure projects across europe. >> europe needs a little bit of good pr. that is a bit of an exercise mr. juncker is trying to do. >> needs to feel better about itself, that is what the pope said. chulz is speaking. jean-claude juncker will be speaking as well. we are looking to take questions from the press on the fund that has been announced. we've heard juncker run through the details of the plan. i think we will bring you some of the other news, get back to hearing what mr. juncker and mr. schulz are saying. then take some questions to hear about the problems that surround this plan. let's move on. >> this is what else is on our radar. pro-democracy demonstrators in hong kong have clashed with police as they try to clear a protest site. detainedficers protesters and prepared to remove barriers in hong kong. two student leaders were detained. public support for the two-month old protests have been waning. people thought the government should take action. >> more than double the $17 billion value from its last dilation in june. uber is raising money to finance the national expansion. -- international expansion. asgoogle could be broken up lawmakers vote thursday on a call for regulators to consider splitting search engines from commercial activities. the regulators will push google to apply privacy requests from eu residents from its primary site in the u.s. speakinglaude juncker at the commission. let's have a listen to what he had of the european commission has to say about the plan he's underlined this morning. >> make sure we can build trust again. these things need to go hand-in-hand. budgetary consolidation, structural reforms need to continue being introduced. we need a third pillar. that islung, investment. we have set up this investment plan. been looking at investments over the past. theell you the truth, at of of the dramatic phase financial difficulties we expected recovery to come faster. did not come faster so we need to get public and private investment. make sure that the economy can be kick started again. another thing that might be we will geted but further details, this is a project pipeline that is going to be set up. just mes might not funding but would like to know up soe project can be set they are attractive to investors and they will have an effect on the regions where these projects will be carried out. to haveso important this type of support. d what is also important is to make sure that the projects on which we shall be agreeing will not be sand castles. they will really promote the potential. it is not just a short-term program. we are looking at long-term strengthening of the economy. if you allow me to do be able toainen will give us further details on this program. i've got to say. i think everybody needs to get down to work. much, mr.ou very president. gentlemen, what i want to say first, the investment plan is not a magic wand which will change everything. implementmanage to the plan properly and efficiently we can make permanent change. a one-off stimulus measure. this is more like a program touches the various areas, from single market development to project pipeline and further access to finance. from the first behind, we are looking -- we are lagging behind the sustainable level of investments. big year. target the the biggest part of investment is explained by a bubble in some of our member states. the sustainable level of additional investments is year.at 300 billion per is tryingment plan riurnal. there are three different parts. our aim is to take uncertainty out of the investment by mobilizing new investment finance. this is the first part. provide trustworthy projects. within reach to real economies. and prove the investment environment -- improve the investment environment by creating an deeper single market. at the heart of this package there is a political choice. how to use european public resources. either we continue business as usual with traditional tranche and loans. that is as far as the money goes. or we use our budget the most efficient way to support riskier borrowing and create a larger lending capacity. we have chosen the latter. higher to increase powers of the eu budget and the new vehicle, which i will present next. so, this is the construction of the new fund. fors called european fund strategic investment, efsi. so where money comes from two efsi? first it comes from the european investment bank, which will inject 5 billion in capital to the new fund. financing source of comes from the eu budget. i will try to explain it in a way not able to help you understand what we are going to do. we will collect around 8 billion from the eu budget. billionosal is that 3.3 . 2.7 billion from 2020. be placedlion will to fund within the european budget. wheres a current fund those resources are put. tos 8 billion will enable the efsi6 billion into . there is 8 billion from those sources which i mentioned within the eu budget. and once the 8 billion is there it will enable us to put 16 billion to efsi. these two sources together will th 21 up a capital base wor billion to efsi. tos 21 billion will enable increase public lending a bit more than 60 billion. according to the historical experience, empirical experience, this will attract prior investments. at the end of the day, the birth of new investments will be 315 billion. will explainer more about this leverage multiplier effect. it is also very important. investbeen planning to or to use additional lending billion, toound 75 sme's and mid-cap projects. or, 5 billion to mid-caps and sme's which will attract private investments so the overall song sum will- the overall be 75 billion. 16 billion to long-term investments. this will add up to 240 billion or so. there are two issues which are very different. comparing the current eib. the first thing is that the efsi will focus on high risk investments. the second is that -- >> this is like the ultimate roadshow. >> this is important stuff. this is then talking about taking high risk investments with efsi. fairly aggressive leverage ratios. this is talking about trying to get european growth going. we've seen some of this before and it is not really working. >> a, they have to basically entice the private investors to play a part. >> seems pretty aggressive. >> they just have to deliver. we have to see some of that money in the real economy in three years or four years. what i question is how do they this as success. that is what we will be discussing. >> getting it to work. break is theer the chief economist at ing. we talk about what his views on all of this are. jean-claude juncker says he does not want to build sand castles. what will we be building in europe? find out after the break. ♪ >> welcome back to "the pulse." live on bloomberg tv and streaming on bloomberg.com. >> samsung is to sell some of its chemical and defense picked defense businesses or deep buyer is a conglomerate ant has been making exclusive for six decades. on amsung cons up generational handover of power from the patriotic to his only son. the deals are expected to be completed next year. zalando is a public company. the company expects to end the year slightly profitable after posting a smaller loss in the first quarter. >> goldman sachs and hsbc have been sued in new york over claims they conspired to manipulate the price of precious metals including platinum and palladium. etals unit of basf is also being sued. the complaint said the companies used inside information to profit from price movements for the metals used in projects ranging from jewelry to cars. this is the first class action lawsuit of its kind in the u.s. uber isharing service driving up to a $40 billion valuation despite recent pr troubles. we are following the jean-claude conference in brussels very closely. >> you are looking at live pictures of commissioner katainen. we will talk to carsten brzeski from ing to get his take. is it a game changer? apparently not. find out more when we come back. follow us on twitter @guyjohnsontv, @flacqua. see you in a moment. ♪ >> now for more on the european commission's 315 billion euro plan, let's bring in carsten brzeski. what do you make of what you have heard so far? >> it is nice abracadabra. the intentions are good. they tackle the problem of lack of investment. they try to make europe more competitive. the implementation is lots of wishful thinking. it is a fund of hope rather than strong commitment. >> we are looking at live pictures, that is commissioner hoyer addressing the press conference in strasburg. i have a strong sense of deja vu with the story. we've been here before. we had talked about leveraging up. i remember being quite passionate about the fact that it was unlikely this leveraging was going to work. a 15 times leveraging of 21 billion here. is it magic they are china to propose? how is this going to work? know.o not i think it is magic. i agree. we had this leverage issue with the esm, it also did not work. is nice to cap the risk for investors. but how will they get investors on board? where is the return on investment for an investor? we are talking about infrastructure investment. we are talking about public goods. public goods should be done with public money. these are public investments. >> many ask you a simple question. given what you have heard, do you think new investments will actually materialize on the back of what we heard from jean-claude juncker? honestly, not in the next six months to eight months. in thell fun only start summer of next year. it will probably be the end of 2015. i would not revise any growth forecasts for the eurozone. if there is any positive impact for the eurozone it will be in 2016. 315 impact will not be these billion euro. i do not believe it. thingld a more useful be to do to say we are not worried about the eib's aaa rating. >> that would be one. a more useful way would be to look at governments which can get money and markets right now for less than 1% and go for it really fresh money to start investing in the right projects. infrastructure, energy, education, innovation. these are the right areas but we need a kickstart for investment. not hope for a gradual magic wand which will probably only have impact two years from now. this is politically sensitive. i guess this is the point. how much of this is done without ruffling feathers. they are concerned about european politics when we go to fresh elections one year or two years from now. >> obviously. -- we are also going always going into some kind of election. it is not the commission we can blame, it is the member states because they are not willing to chip in fresh money. this investment initiative is another missed opportunity because it could have been the kickstart for a new european vision. a european vision for growth and more european integration. right now, it brings back memories of other leverages for the esm and other big ballpark figures which never materialized. i think chances are high that this is another missed opportunity. >> a missed opportunity for the ecb as well? the ecb is looking for assets to buy. me that strike infrastructure bonds would be a way of creating a virtuous circle. you can broaden the monetary base and at the same time provide money for shovel ready projects/ have we thought beyond a way of making this project work and how to fit it into a wider story? we miss the opportunity to fit it into a real european strategy. if we had infrastructure projects this could be the supranational bonds the ecb alld buy without having germans run to the constitutional court and object against real qwe. ecb,the ball is with the which will have to do whatever it takes to get growth in the eurozone going. it is the missed opportunity that we will not get this grand bargain. we are all players in europe. playing together for one goal. the one goal should be to make europe more competitive and to get growth coming again. >> carsten, do you think the ecb is thinking about that? they do not know what to buy, why not create something they could buy. is it viable? we have had papers suggesting that that is the most favorable way the ecb would like to see. it depends on whether it works economically. >> i think the ecb is very determined to do more. the balance sheet target is for real. avoidb will try to purchasing government bonds. therefore looking for other alternatives. this is why we had the discussion on rumors about corporate bonds and wouldational bonds make life easier. eventually the ecb might still be forced to buy government bonds. >> thank you so much, carsten brzeski, ing germany chief economist. >> let's shift gears, literally. t boss is filling up tanks for an international road trip. close to raising. $1 billion. that would value the firm at $40 billion. hans nichols joins us from berlin. this is amazing. it was back in the summer that they last had a round. that put the evaluation at $17. 40.are now talking $35 to $ >> you look how quickly uber has gotten to 11 figure valuations. you see why so many investors want a piece of uber. legalare these challenges. in germany it is unclear whether they will be able to operate. they have slowed down and only offer their services, this was announced last night, on the weekend. uber wants to have a lot of cash so they can compete internationally. you look at their valuation, $40 billion. you look at where they are in comparison to other companies at the same level. they are in the same range as kraft foods, delta, and airline company with hard assets -- airplanes. you compare them to hertz rental car, hertz is at $11 billion valuation and has a fleet of rental cars. it is a skyhigh valuation based on the billion dollars they want to raise. we think t. rowe price will invest, that has not been confirmed. ditto for fidelity investors, they were a previous investor. money.ve a lot of the question is will they live in a regulatory environment where they can spend the money and compete? you aboutoing to ask regulation. they had lawsuits and they do not know how they can operate in which countries. >> there is a great deal of uncertainty. it in the past couple days. apr kerfuffle in the u.s. potentially investigating journalists. in europe, the challenge is fundamental. will they get regulatory approval? crackdown ona airbnb in europe the way there has been in new york? the sharing economy leads to high valuations. it seems that it is right to be punctured by a legal challenge. the question is, is the legal challenge final question marks in quick we are getting close in germany. it is sitting at the constitutional court. frankfurt is looking at it and we couldn't get a final ruling in the coming months. we will see whether or not uber can compete in germany. >> highs nichols, our international correspondent. >> the u.k. papers are full of stories that the u.k. wants to be the capital of the sharing economy. crude sinksec do as to a four-year low. analysts are split on whether the group will lower output. we will discuss opec's next move with a texas oil market analyst. that is coming up. ♪ group is meeting tomorrow. ryan chilcote is there. we bring you the headlines, when we come back. ♪ >> welcome back. you are watching "the pulse." live from london on bloomberg television. the nations supplying one third of the world's crude did not output.ges to decrease saudi arabia, mexico, venezuela, and russia opted to monitor prices. the world waits on opec's next move, which could be announced when the group meets tomorrow. joining me is natixis oil market analyst abhishek deshpande. good morning. the takeaway is pretty much that we are going to get nothing. what is the price reaction if we get nothing? >> if you look at after naimi's have done,at prices prices have not done much. this could be an indication the floor is there. remain there, i do not think so. if there are no cuts, markets will sense the supply will be there for a longer period of time. then you are looking at a 2008 scenario. onshore storage capacity will run out. then we go to offshore. belowng spot prices wer where they are now. you will see a reaction eventually. >> what kind of figure? is it going to be a shock? >> immediately or eventually? >> in five months or six months. you say there's going to be a further drop. is it $20 or $30? >> it is difficult to predict. be surprised if the drop is significant. the markets will be oversupplied. right now, the glut and supply is almost 600,000 barrels. more than the glut in demand. it is going to get worst in the first quarter next year when seasonal demand is lower than the last quarter right now. you could see prices falling below $65 a barrel. >> a bit of a tragedy of the commons in terms of the way this is borne out. more concerned about what happens in the u.s. than it lets on? if it starts to cut, the u.s. is going to take advantage of that. saudi arabia is in a difficult position. any cutbacks it makes, u.s. shale producers will make more. even opec producers will make more. even if they promise they will cut, what are the chances they will adhere? saudi arabia is trying to wield power. position totrong wield power and make sure other opec members either come on board and stick to the cuts they decide tomorrow or lower oil prices could help saudi arabia in the future. maintaining their market share. in the future more oil will be required. making sure there will be higher break even. oil produces will be taken out of the market. c> this is naimi and ope telling the world and the u.s. you cut first. or do you think this will resolve itself? markets will support oil longer-term? >> it's very political the way the prices are. the market was being driven by fundamentals earlier a few weeks ago. now it is looking more political. saudi arabia is definitely -- not just saudi arabia -- any of had member. -- any opec member. they all want high oil prices. if they want their fiscal budgets to be balanced, they need high prices. in the last two or three years, saudi arabia has managed to sell oil at about 100 art levels and iraq aexport levels than nd libya. they are building a stash they are relying on now. if that is what it takes to bring other opec members on board or just keeping low oil prices and helping demand. and japandia, china, will benefit end -- there will be more demand for oil. oilore demand for down the road. how much fear is there that the price over $120 was demand destruction? is there a sense that as the west invests in new technology and green technology you will see an erosion of demand for their product on the road? demande is the fear that for oil will reduce because of natural gason to and green technology. in the short term, we still depend on oil. higher oil prices impact countries such as india, which imports 80% of crude oil. 20, we were accelerating that. >> exactly. they will probably think, and yet will think of moving away from oil. in the short term the chances are low. it will still be stuck with using only oil. the only way that demand destruction will take place is if consumption in the country -- oil,hishek deshpande market analyst at natixis. shot andce officer who killed an unarmed black teenager says heson, missouri felt like a five-year-old trying whenstrain a wrestler confronted. the second night of protests in ferguson of the decision not to charge wilson over the shooting. missouri highway patrol captain ron johnson described the scale of the trouble. >> we have seen violence and destruction before. we have not seen anything to this magnitude. one thing we keep saying is that we maintain lives. no one was injured. no one lost their life. that is a blessing. thomases in travel agent cook are slumping after the ceo says she is stepping down from the company effective immediately. the coo will take over. the company posted a four-year taxes, a steeper loss than expected. >> bundesbank vice president interestuch says lower rates are causing investors to take risks. the bundesbank is keeping an eye on real estate. some investors should be ready for a market correction. >> investors should prepare themselves for potential reversals from the previous crisis. in case market sentiment changes, there might also be in the of liquidity financial system. any investor has to be very aware of the possibility. and also take precautions against it. >> next, no cuts to crude. whyead to vienna to look at opec will not reduce oil output. ♪ >> good morning. you are watching "the pulse." on bloomberg.tv. let's talk about the fx markets. the aussie. interesting stuff happening. coming down overnight. that is the last two-day chart. of the reserve bank of australia saying overnight not given the decline in the terms of trade we have seen for australia, the aussie should be weakening significantly. that has not happened, we are still trading in the mid-eighties. he did not suggest how much the come down by, bloomberg decided to do regression analysis. if you run the numbers you should get a number of .7630 id-80's we are trading at the moment. the currency last traded at those levels in 2009. if you extrapolate, maybe the trading lower.e >> for a look at what we are watching we are joined by ryan chilcote in vienna. it looks like opec will not cut output. that is fair to say. we heard from the oil minister of saudi arabia. he does not talk very much but when he does it is meaningful. saying saudi arabia should not cut, the u.s. should not cut, nobody should cut. the oil market will stabilize. he said that after his daily speed walk. meaningful,mously considering that it is saudi arabia that has the spare capacity to cut. a short while ago with the oil ministry of the united arab emirates. he suggested that while there is a glut of oil on the markets, it has not been produced by opec. it has been produced by shale producers in the u.s. if anyone is going to cut, it is down to them to do that. the newcomers coming to the market, they need to realize that there is fundamentals in this market that everyone needs to respect. the market is stronger than all of us. it will stabilize here it sure the market will stabilize. there seems to be a feeling here that the low oil prices we already have may shake out the shale producers in the u.s. atch are producing oil records the country has not seen in three decades. and that this problem may take care of itself. there is a sense that the problem will go away. >> tell us what else you got from the interviews you've been doing. unsurprisingly, the iranians talking about how they will not cut. they are talking about how they production. saying they do not need permission to do that. not from the u.s. or the west in terms of sanctions or from the cartel. at this point we have got to watch what happens. we have to watch mr. naimi and the other ministers speak. that is what we will be doing. >> looking for to it. ryan chilcote in vienna. >> that is it for "the pulse." is next, live from new york. follow us. >> on twitter. i am @guyjohnsontv. >> i am @flacqua. have a great afternoon. we will see tomorrow. ♪ >> concerns are channeled. the president asks for calm. the governor of missouri asks for additional national guard. blocked the police path of protesters trying to get from manhattan to brooklyn. oil plunges as the opec cartel unravels. in your james, the role be no .lane delays good morning, this is "bloomberg surveillance." we are live from our world headquarters in new york. it is wednesday, november 26. i am tom keene with scarlet fu, and in greeley -- brendan ruhle -- andhanie on and on. >> we start off in missouri. police and national guard troops have dispersed protesters in ferguson. there was some scattered violence. some stores were vandalized. it was nothing like the chaos of monday night. the police officer who shot the black teenager in ferguson has spoken publicly for the first time. there and was interviewed by

Related Keywords

New York , United States , Malaysia , Japan , Australia , Germany , Brooklyn , Missouri , Texas , Iran , China , Strasburg , Mecklenburg Vorpommern , United Arab Emirates , Russia , Brussels , Bruxelles Capitale , Belgium , London , City Of , United Kingdom , Mexico , Iraq , India , Saudi Arabia , Hong Kong , Libya , Sechin , Franche Comtér , France , Vienna , Wien , Austria , Italy , Venezuela , Greece , Berlin , Saudi , Germans , Aussie , Iranians , Britain , French , Italians , Angela Merkel , Carsten Brzeski , Martin Schulz , Claudia Bush , Mario Draghi , Abhishek Deshpande , Greeley Brendan , Thomas Cook , Terry Morgan , Anna Edwards , S Jean Claude Juncker , Jean Claude Juncker , Ron Johnson , Mohammed Saddiq , Hans Nichols , Darren Wilson , Rosneft Martin , Tom Keene , Claudia Buch , Caroline Hyde ,