Welcome to pulse pulse live from bloombergs European Headquarters in london. Im manus cranny. Lets check in on equity marks in europe here. We are gaining for the fourth day in a row. We are extending equity highs. The i. M. F. Cut its Global Outlook by the most in three years. The World Economy will grow by 3 bonnie 5 in 2015 down from 3. 8 projected in october. London up 1 3 of 1 . 6606. Growth expectations. Have diminished everywhere except if ever the u. S. That will offset the boost from Lower Oil Prices. The weakness, many emerging market economies are revising their medium term prospects now. As the i. M. F. Downgrades its forecast chinas growth in 2014 beat estimates. G. D. P. Expanded 7. 4 in line with the governments growth target. It was, however, the slowest growth since 1990. Were joined by andrew davis in hong kong. I suppose if we want to sum this up, they avoided a hard landing. That was the market paranoia of 2014, wasnt it . Yeah. I suspect that they havent convinced everyone that they completely avoided the soft landing and well probably see some of that paranoia continue. They talked about a new normal, Slower Growth but sustainable growth. It remains to be seen whether they can pull it off. It seems they have allayed some of the fears in the market. Andrew the world gearing up for davos. What do you think the message will be . About the new normal . I think he will make a case for the new normal. Talking about the fears of a hard landing and they literally wrote people need to get over it. I think that is going to be lees message that we see in davos. Their efforts to sustain the economy to a more service oriented, consumer oriented economy may be starting to pay off. The Real Estate Market is soft. There is a lot of worry about the shadow banking industry. The rate cuts seem to have had some effects. Andrew davis in hong kong. Thank you very much. Lets see what hes message is tomorrow in davos. We are there. President obama delivers his sixth state of the Union Address today. The president is expected to focus on improving the economy, immigration and cybersecurity. Youll be able to see the speech live in full right here on bloomberg. Now on our radar as the World Leaders and the Business Leaders head to davos, well talk about the euro, the challenges in Decision Making in todays world. Today such a new phenomenon. With a complex world we do not always know the unintended consequences of degrees making. Look at the Swiss National bank. I think they didnt know all the consequences it will have. So i would say europe is at the forefront of concerns related to china. Im optimistic about china. We should not just focus on one single issue. We are in a world of multiple challenges. Well bring you more from that interview throughout the show. Coming up, china g. D. P. , well, more on that story. The lowest growth in 24 years. Stay tuned for analysis. Welcome back to pulse pulse. Were live on bloomberg testify, radio and streaming on bloomberg. Com, your tablet and your phone. We are omnipresent. Lets talk tech. Hans nichols is on the ground for us. You have an exclusive interview. Take it away. Thank you man us in. Manus. We just heard you talk about google and the need for a fair level playingfield. Tell us what that means . It is the main player in our economy. Google has huge competence. We have few everybody, the European Companies and the Global Companies have to accept our rules, means objectiveness, neutrality. We have some concerns a concrete case that should be decided have to come to a fair balance between googles business interest and our relations. Im quite optimistic. Quite optimistic that youll come to a deal. Will that include a new tax, maybe . A new tax on google . A taxation is not a concrete point in the google case. We are developing a new and taxation may be one instrument. Involved next week, coming out a proposal middle of the year. Taxation may be involved. They there be a fee that google will have to pay to publishers for taking their content . A fair balance between all that publish us on the one hand and so we are inviting all stake holders to come to a fair solution. And no doubt, as there are different interests, but at the end of the day, i think we can come to a fair compromise. Do you expect there to be Net Neutrality from brussels a pan view rule in the coming year . Yes. Net neutrality is one point. It will be discussed next week. We can come to a decision, that is my expectation, before the middle of the year. We need clear obligations and a clear rule for everybody. When you talk about clear rules, clear obligations, when we think about streaming online should streaming online, should that be allow to be roaming pan europeanwise . One day will be able to watch a football match across borders on my mobile device . It is our ambition, yes. We want to complete. We want to finish our so it is a clear advantage for the investors and for users. That means one rule on roaming. One pan european rule. It means one rule for roaming. Quick question for you on cars. The Auto Industry which germany clearly is a leader on. Does it need some help in competing against the googles and the Tech Companies and Silicon Valley . They dont need help. We are cofinancing some research. Im sure our european are smart enough, tough enough and Strong Enough to survive. Longterm. 4. 0 is one of our main challenges. Commissioner oettinger, as some may be calling you in brussels, the new sheriff in town. We just talked about the need to have standardsized rules. I know youll be looking forward to your favorite Football Game on your cell phone. Manus . Tax is on the table. Great interview, hans. Thank you. Lets return to one of our top stories. Chinas Economic Growth. It beat estimates. Is that something that we should cheer about in the last quarter ending on a resilient note. They expanded 7. 3 on the year in the Fourth Quarter of 2014 nair owely narrowly beating suspectations. Expectations. Is it a new normal for china . My guest is a deputy chief economist at asianomics group. Great to have you with us. How should i look at the china data . The slowest in 24 years. A hard landing. Do i breathe a sigh of relief . No is the short answer. The market has seen what it wants to see and is rebounding today. Optimism is misplaced. The Growth Numbers are always questionable. I think the more reliable number to look at is the nominal g. D. P. Numbers. Growth slowed further in the Fourth Quarter to 7. 6 from 8. 2. That is down from 20 one year ago. So the economy is definitely slowing. Were seeing the nominal g. D. P. Numbers much more in line from macro indicator numbers whether it is hsbc pim, etc. Sorry. I think that paints a much gloomier picture than what markets are reflecting this morning. Im going to go on your journey which is slightly more pessimistic. What does lee need to do then to effect a nominal growth . I dont think there is a whole heap he can do. If you look at the slowdown, it is very much led by the Investment Sector and in particular the Property Market and every indicator you look at across the country, the Property Market is on a downturn and worsening. That is understandable. The huge credit bump, most of that investment has gone into the Property Market and thats where the debt overhang and the investment bubble is. Is this about managing a the avoidance of a property crash . Yeah. I think they want to see they are very much aware they have a debt overhang problem. They want to manage it. No government wants a crash. So what are they going to do . I do think that they will continue to cut Interest Rates. They could cut as much as 200 basis points. Whether that will be acceptable is another question. Our answer will be no. All it has done, this is of course is the peoples bank of china. All it has done is fed a mal investment bubble that resulted in a greater debt and overcapacity. Call me old fashioned. 200 basis points off the top line of rates is that not going to continue to deliver a greater debt overhang . Yeah. Youre right, manus. Absolutely. The 200 basis point cut is it is not going to lead to a resurgence of credit. Banks are in consolidation modes. If Interest Rates are cut, Interest Rates for margins are going to get squeezed. That is putting money directly back into the system. I dont think they are going to that because they know that they are not going to pump more credit into the system. We dont think they will go for a big stimulus package but we think the prospects of a deevaluation are growing. That is where we want to talk about, a yaun evaluation. Yuan evaluation. Manipulator currency. But the currency, a deevaluation. What level of deevaluation could we see and give me the time frames because everybody is playing the currency game. Currency wars . Yes, absolutely. I think the prospect is growing. The question before that is what are the circumstances under which they would go for a deevaluation rather than a 3 to 5 to answer the first question, which brings me back to the g. D. P. Numbers. The one good thing is that it is booming and it is very different from 2008. Even though chinas Business Cycle indicator is now back at the level of 2008 when they introduced the big stimulus package. Labor markets are relatively calm. What that means is there isnt the need for big fiscal stimulus from there. They could go for the deevaluation option. If the Service Sector fails to absorb the manufacturing job losses. Then we would see them relying more and more on it. You can see why. You sf you look at the Chinese Exchange rate, it depreciate bid 7 in the first half of the year. It is now 8 stronger. Were going to leave it there. That is a big call. 10 to 10 . Great to have you with me this morning. Coming up, we sit with union levers c. E. O. This morning. The company yni levers c. E. O. This morning. The Company Released numbers. Stay tuned for that. Youre welcome back to pulse pulse live on Bloomberg Television radio streaming on your phone. Unilever has posted the slowest growth in a decade with weak growth in merging markets, europe in decline and only the u. S. Posting a pickup in growth. Almost sounds like the i. M. F. Report. Despite the slowdown, it is very much focused on emerging markets. This was the big play for unilever. Ben jerrys ice cream. They got it all. It has always been about the emerging marks. About 60 of all of their sales come from thailand russia, china. It is slowing down. They serve 2 billion customers. No wonder they reflect what the i. M. F. Is seeing. They painted a beautiful birds eye perspective of what is going on in the world. In United States there is a bright spot, were starting to see consumer demands. In europe, we saw a decline down 2 . 3 in the Fourth Quarter and were also seeing a real slowdown in china. 20 drop in sales because they are destocking. Are you as resolute in remaining there . Are you as determined . Yes, is the answer. He said you can look at the news headlines. Sure it doesnt sound all that great. 5 margin, europe would kill for that. We aim to have 3 4 of sales in emerging markets. The c. E. O. The headline after headline after headline, were all concerned about emerging markets. They are running a business on a much longer term scale. Precisely. It was great interview. A c. E. O. That manages to but you were talking to him about oil prices. Because it is so topical. What does it mean for their business . He said a really interesting take. Again it was a longer term perspective. Bigger than just unilever. He said it gives us a unique opportunity to actually start to price trying to scale back from oil. It is all about Climate Change for unilever. Oil is not going to affect the business that much in to tality. Have a listen. The Lower Oil Price at the time that we need to get Climate Change agreements is an ideal opportunity to put the price on carbon finally and to it is about 700 billion of subsidies. Not helping us. So this is a unique opportunity. In that sense it is a very positive thing that we see the oil price going down. There is a perception that we might see a little bit of that in some places. But many countries import oil and they have seen a weakening of their currencies at the same time. So we need to work our way through this. And then when prices go down, we also see prices in the market more deflationry and we have to adjust to that as well. The overall effect for a business like ours, might a little bit. Overall it doesnt affect them. It is not really helping the consumer. He is a great man to speak to about things over and above his own company. He cant wait to get to davos. He is very passionate. Thank you very much. Caroline hyde. Coming up barclays. Lets talk about that after the break. You are welcome to pulse pulse live from bloombergs headquarters in london. Im manus cranny. Bloombergs top headlines. Chinese growth figures out today show that the Fourth Quarter g. D. P. Rose slightly ahead of forecast. Chinas fullyear growth figures were close to the governments target for the year. They show that 2014 was the countrys slowest year of expansion since 1990. Chinese stocks rose on the news rebounding from their biggest loss in six years yesterday. Denmarks economy minister said his country will not follow switzerland in severing its ties with the euro. He said any comparison between the two countries is impossible. His comments follow yesterdays surprise move to cut by 15 basis points to. 2 . They are expecting the central bank to lower Interest Rates today. The countrys deputy Prime Minister made the comments at a News Conference after a Cabinet Meeting headed by the president. The Turkish Central Bank is due to publish its decision at 11 00 a. M. London time. Greece and one of the most important elections in the nations modern cyst could mean the end of greeces membership in the your zone. That is one potential outcome. What sort of impact is it having on the Tourism Sector . Joining us now on the phone from a resort there is a resort chairman. Great to have you with me this morning. It is one of the bright spots in the greek story in the past couple of years. Are you seeing any impact thus far in the bookings for the business . First of all, thank you for inviting me. No. I believe that greek tourism will perform as well as it has performed this two last years. Dont forget that the year 2014 was the best year ever for greek tourism. 21. 5 million. Total income for the greek tourism, more than 13 billion euros. I think this will continue this year as well. Power in some form, as the polls would indicate, what worries you most that they would gain power in greece . I believe i dont know what the result to have election will be. But any government greek tourism is very important for the economy. But also for People Living in remote areas in our beautiful but very isolated small islands. And so i think so i think every government will look after it. I must put it to you obviously that the polls that we see 70 of greeks want to remain within the e. U. That means possibly holding on to the curnspifment a return of the drachma some say could decline. It would bring tourists in by the droves. Is that a poisoned chalice to your industry . The vast majority of the greeks want to remain in the e. U. What we really expect is giving us a possibility of growth of development so that we can see our economy recovering and this is where we believe the only way to start being in position to pay back what we own. Owe. We really believe a new negotiation will be very important. But we are optimistic. These are difficult times, of course. But what i have to say is that in my business, im in tourist business for many, many years i see young people. I see people that want to make and i have the optimistic feeling that we are going to have a Better Future in the next years. Stavros, we wish you well with the season. The resort chairman. Now the market shock caused is still being felt and still being felt in denmark. Offshore investors ensure they are not about to copy switzerland and drop the deposit rate to a record low. They say the necessary tools to defend the euro peg joining us is mark gilbert. What was . It walks like a duck and quacks like a duck and there is a danger there were sticking to our peg. Were not moving at all. Central banks have to say that until the day it is no longer true. No one thinks it is going to go. When there is a consensus like that, that makes me more nervous than more. There might be a fantastic profit reason. Very small economy. If you dont see the action on players that everyone expects, youre looking at turmoil. In chaotic situations, bad things happen and unexpected things happen. Im pretty sure the Swiss Central Bank didnt expect to be trading in parity to euro this week. Probably 110 closer to 120. Yet, thats what happened. Yet currencies, you can end up in the eye of a storm, unbekno