Transcripts For BLOOMBERG The Pulse 20140403

Welcome to the falls. We are live from the european had orders in london. I am guy johnson. Coming up, we will see how marvel finds its winning formula. Home delivery. We are looking for the online Takeaway Service to make a trading view. Debut. There is an inflation rating that there iscern this viral of deflation or low inflation. Christine lagarde is putting those words out there. Yeah. She is putting those words out there. She is assuring mario draghi to act. David tweed has the story. A robust debate is going on and most economists do not expect action today. Imagine if inflation was over three percent. You would the central bank to discharge its mandate to bring prices down. Situation where the inflation rate is on the wrong side of one percent and the central bank continues to postpone taking any action. That is why people are so upset that the European Bank is not discharging its mandate. It is not a lot of difference. Regardless of what victor said about the latest figure. Reckons it will correct after easter. You have to take the whole thing and to what mario draghi the rest of the Government Council thinks about. That is what i am going to be listening for when he speak to the News Conference later today. Right now, they argue that, despite the fact they have low inflation, you have inflationary expectations among the public that are fairly well anchored and that is the key thing. Mario draghi seems to be building consensus. Should we play into that . Iffirst of all, it looks as the president of the bundesbank expects to be one of the biggest talks and does not want to move. He says that quantitative easing could be her missable if they do not by sovereign bonds. He talked about negative Interest Rates and that is interesting. That is a situation where banks get with the European Central bank and have to pay for it. They say that it may be a legitimate way of bringing down the euro. Of course, the euro, at its current levels, is not great for exporters and is not great for inflation. You make it a bit more inflation coming in. It looks as if the president of europe is coming on the side that would allow mario draghi, and his News Conference, to start laying groundwork for deflation and he becomes convinced that the inflationary expectations are becoming unhinged. Thank you very much. Editor, david tweed, joined us from berlin. We will bring you the latest decision at 12 45 and at 1 30, we will have the full coverage of Mario Draghis News Conference. Tochina has a line of steps support the economy and create more jobs. For more on that, lets bring in our editor. Scott, what does this tell us about chinese lenders and leaders. Leaders . They are starting to get worried. They have said that 7. 5 level that the country needs to grow to create jobs at the pace of the leadership wants. And they are not hitting that pace and and was are not confident that they will. Somethinghave to do to step that up. They have to do something for a to the economy. Stimulushort of the that they did after the financial crisis in 2008. It is something that could keep the economy from slowing down further. It is really interesting, the way that they are doing this. Is this tell us something about level ofrn over the credit in the economy and the debt and the economy, etc. , etc. . They are doing this with debt fueled investment for the last few years. A lot of people are saying that they should be concerned about the level of debt in the economy. It is getting to levels that could potentially increase the danger of a financial crisis. There is not a consensus that that will happen. If they keep using debt to fuel growth and stimulus, more and more people are starting to get worried and we will see those concerns start to show up in the economy and markets so far this year. Thank you very much indeed. That was scott. Restated fourthquarter results. They say they have lost half 1 billion. Lets bring in manus cranny with the latest. Ou talked about the issue i get the feeling that 2014 is going to be when Credit Suisse goes for the cleanup. It involves 22,000 accounts in the u. S. And 8000 Credit Suisse bankers. Making progress on this issue. In journals, i say that we have made Good Progress on that front and we have a number of issues resolved. We have one of the larger issues. We feel like we have taken significant reserves during the course of last couple of years and we made Good Progress in working through those. I also think that the profile in this area is a lot smaller than a number of other banks. It is hard to say that to the end. I do think that we are making Good Progress. That progress is a few weeks ago. They did a deal to sort out their issues with any and freddie. Total upat brings the to 800 million. Litigation and tax charges have been a big problem for many of the banks. Withrms of where we stand tax provisions, where are we . We have made Good Progress. Christmas,down after myself; were surprised. That was the issue. We are further down the road and it is disappointing. I thought i would bench mark it. Se the pun, they handed over and this is the new issue. They have accounts for investigators. The next day, they got summoned by the irs and they had to hand over another for 5000 where are we . Ubs and we have yet to find out what they are going to hand over. Do we know what we find that out . It could be months. Lets let us wait and see. Manus cranny had the very latest on Credit Suisse. A set tophas launched box. Operators. V there could be a new Television Delivery model. Here with more is caroline hyde. What do they have to offer . Content. If you are a netflix user, you can use it. If you are a hulu user, you can use it. What they want to do is get onto prime tv. Crime instant video. You can access 50 thousand videos, movies, television shows. If youre paying 5. 99 pounds a month. They would need to get onto the amazon account and then you would upgrade to amazon prime. That is the way that you get sucked into the amazon echo system ecosystem. Spend far more using amazon than those who do not have the hardware. Through this hardware, they wanted to be sucked into amazon and upgrade to the prime video. From that, upgrade to prime in general. They have other things that they tv out of theple water. This thing really goes and i cannot wait for you to try now. If you have it all along, Fire Television is three times the performance in power of apple tv, wrote to, of chrome cast. This is a powerful device. It is powerful and offers games. Soon to be thousands of games. It will have voice command. That is something that none of the others have. They are offering content, power, and gaming will stop will this hurt . And gaming. Who will that hurt . There are options out there for the box set. Apple tv cost 99. As does the rogue who set top roku set top box. What about paytv . It will hit the set top box manufacturers already. And otherit Comcast Companies that, as we see these over the top boxes and people streaming from the internet, no longer do we want to pay 40 pounds or 80 to have access to Cable Television sets. You want to have streaming instead. It is much cheaper. This is what companies are worried about. Cutting the cord is what they call it. They are hooking up with apple to provide a set top box. And directv comcast are planning their own streaming offerings. It is going to get very interesting for the competition as to who builds what and when. For the moment, it seems like amazon is going for the jugular and the main thing for them is to get us all addicted to amazon prime. Thank you very much for the latest on amazon. Is decision day in the ecb and will the threat of deflation force mario draghi to act . There is a fragile and modest recovery underway and it needs to change year boards more sustainable growth. And balanced growth. Saying was the imf chief that more must be done to boost Global Growth and she says that low inflation could undercut the sluggish recovery. We spoke to the bundesbank chief and he said that a negative rate could counteract inflation potentially. We also asked about the strength of the euro and how it affects decisionmaking. It is not a polisario policy target for us. An assessment of the economy and it affects our assessment of growth. This is how we would take it into consideration. He was speaking to our colleague, hans nichols. We are looking at those comments aggressively. Lets talk about mario draghi building a united runt for the next big push. Is what people are talking about. It is decision day for the central bank. Lets talk about what we are going to. We have the chief european economist. Lets start with the comments that were the prelude to the meeting. Have been made over interpreted . I think so. I am open to the possibility of qe. N, he said that she we on he said that they would do qe on privatesector equities. There are things that would be eligible that are not large enough to do a largescale asset purchase program. Qed works if it is long on government bonds. He also seemed open to negative rate. Why did he not vote last month ecba rate cut when the showed that inflation was consistently below target. It rose in the second half of 2016. Year is not a three a serious forecast. The kind of visibility that we have in economics is two years and then we assume returns to trend. Even so, it stays below two percent and the case for cutting rates was very strong last month. If they cut this month, only because of headline inflation dropping to 0. 5 and is expected to tick higher in april. It will look like they are caught by surprise and the focus is totally proven wrong one month after they release it. It will be truly inconsistent. I would say that if they cut today, it is good for the economy and bad for the communication on the ecb strategy. Do you agree that the markets think that he is more dovish than they think that he is . I think it was an important afterention because it, the doubts of omt, it delivered us where we are now with the eurozone growing and unemployment. Are now ats about omt bit less because the Prime Minister has said that if omt does not work, we have qe in case of an emergency. It is therefore an emergency. To microattempting steer. Maybe that is the over interpretation . It is therefore an emergency. You are expecting change . I am not expecting change. The recovery is getting stronger and we are reaching trend gross at the moment. The lagging hand, indicator of inflation is low and still falling. Next month, it may go up again. Not be worried about this. That is what this is all based on an all of the other things are micromanagement. We do not talk about moscow we talk about Monetary Policy when we talk about Monetary Policy in europe. Should we . They do not have much power left, if you kind of go with the when i talk to officials in general and i do not miss you really mean ecb do not therearily mean the ecb, is not a precise estimate of what could be the consequences. Or anrade war with russia interaction with Energy Surprise that supplies supplies in europe. They could stall the recovery and there is a military angle to it. Could draw the economy back into recession. It is something that should register on the screen a policy makers. Along with the chinese slowdown story. I am not concerned with that. The one thing that is relevant for china is if we keep seeing pressure on commodity prices. Europe couldn in be a possibility. If all prices remain stable throughout the rest of the year, the average rate of inflation would be 0. 7 and 3 10 low the forecast of the ucd ecb this year. I would not worry about the external inflationary pressures because we would see Consumer Confidence raise. The pressure on real income for households is easy and they can support the economy. Part of the deflation scare is actually something positive for the euro zone recovery. What is worrying is within the eurozone. You have countries that have low inflation because the adjustment and you have poor countries with very low unemployment and low on low inflation. That is where the focus is. That the outlook is on the outside. We are seeing higher wages and wage growth in germany could pick up and inflation will pick up. I do not see any reason for the ecb to ask at the moment. I guess we will find out at 12 30. We are back in just a couple of minutes. Welcome back. Lets give you a quick check on equities. Lagarde said that we needed something more unconventional. Riske going in for a big for you in these markets today at the ecb doing nothing. That seems to be coming from the people im talking to. They are 1 10 of a percent higher. The employment report set up a talent for a bullish payroll tomorrow. Payroll services are at 82011 high and equity futures are trading at 1884. The dollar is coming a little bit lower on a slightly revised Services Number here. It is almost unchanged on the dollar sterling and that is it for now. Stay with us and after the break , we will talk about how to order online. Welcome back to the pulse live in london. I am francine lacqua. Im guy johnson. China has announced the stimulus policies. The government will sell 34 billion worth of bonds to Fund Railways. Giving bigger tax breaks to smaller businesses. Minn Russian Foreign ister said russia should not boost its presence. It is difficult to speak about expectations here because very determined russian action in crimea. But we urge russia to pull back its troops, to live up to her International Obligations and engage in a constructive dialogue with ukraine sooner rather than later. You can watch that entire interview in full tonight on charlie rose. Shares have risen in london as the company has its trading debut. Giving the online Takeaway Service of value of 1. 5 billion. The company says it has almost 6 million active users. Ipo volumes in london have more than doubled from the same time in 2013. Manus cranny is here to give us a breakdown. It is incredible how much appetite oh, bad i had to do it. You know, how much appetite there is for online stocks, but also the stocks that have to do with food. This is a cracking share sale. Nowhere near what you saw from boohoo. Com. Today we opened up 10 . We are lazy. We do not know how to cook. We set out our cities and all have tablets in our hands. Manuss weekend. My sum up of my lifestyle. Andon a sitee with a tablet basically get online and order three times as much. You go out for a bit of lunch. She does not eat a lot. That is an understatement. I want to show you the ads. The stock is up 10 . Take a look at these advertisements. They are pretty phenomenal. I thought they were quite funny. Stock up 10 on the open. 14 million shares transacted in the first eight minutes of the session. You know what . You are buying into the view that we are going to order more. The uk is their dominant market. Is the market going to grow . This market is worth 6. 2 billion. What is the barrier to entry . Why cant you or i or francine get that service . I would not want her as my ceo. I get the feeling life on the border be tough. Barriers fairly low. The ceo did an interview and said, i love it. The company is not run for profit. There is no patent on our technology and no quality control. In theyou have locked majority of the market in the united kingdom, you have scale. You are a takeaway outfit. I will sell you a machine for 600 pounds and deliver you an ecommerce solution. It makes it harder for new entrants to come in. Then you will see slicing on the high and on the commission. They sell the technology to the, whatever it is. The indian restaurant. I sell you the machine for 700 pounds. The orders come straight into your kitchens. The delivery goes out and i get 10 . The risk is this there is a barrier to entry. They have to put the install in. If i offered you a piece of kit that did the same thing at 300 pounds you have to be really quick. The more takeaways they get to sign up, there would be a high barrier of entry. They are global. They are and i should by john adjerbaijan. In my post code there is a restaurant. Have you used it . No. But i was out yesterday. I thought actually the risk is quality control. The risk is this if you have a really superduper, highclass rocking takeaway in your area, ok. Why would they bother to sign up with just eat . If you already cranking it out and you have a local clientele that keeps coming to, why pay 70 0 pounds . You still want to grow. Maybe you want to double your size. Ambition. Couple men fall. We do not talk about takeaway food enough on this program. I bring it to whole new levels. The latest on takeaway food. The controversial has arrived in the uk. John brown will have some tough times getting the birth on board. As time gets and reports. The story is high and stretching 2. 5 kilometers deep. This rig could change writtens landscape. Is checkingigas that shale rock for natural gas. Quadrille as on the hunt, too. The man running the Company Knows something about drilling. The developing of shale gas in the u. K. Will make a big difference, but it will not prevent the importation of natural gas from other parts of the world. It will reduce the balance of payment, add a new source of growth, and produce a lot of jobs. T he shale in northwest england has caught his eye. Have caught the attention of others. Local residents have made their feelings clear. Protesting against the damage to the landscape, they have tried to delay the project by blocking access to the site. The resistance is not just about natural beauty. They are worried about their health and damage to agriculture. Andrew owns 130 dairy cows and is worried that fracking will contaminate them. Any contaminant that comes out of the well head will always end up in this ditch, because it is connecting manmade ditch between this is where it go es. I am very conscious of the fact that i have one either side, and the connected one in the middle. If everything goes in that waterway, i will get it. Supporters reject the claim. Protection of aquifers comes down to integrity. As a country we are very good at this. They are regulators and standards of practice which supports that. Shale abundant and every continent, theres little chance it will remain untouched. Now lets get more on former bp boss john brown. He is featured in the may issue of bloomberg markets. Great to have you on the program. You called him the lord of fracking. Since leaving bp, he has been a partner at a private equity company. One of their primary strategies is to look for ways to take fracking bglobal. The uk has a mess of shale formation. We thought, why not start here at home . And quadrille resources is the company they have invested in to do that project. Not in my backyard. That is the problem he has got. And the politics may be starting to change visavis the russian situation. Concerned about importing gas from russia. Local politics is playing a big part in preventing him doing what he wants to do. There has already been a great deal of resistance to exploratory projects. One of the factors that hinders thatoperators herei is Property Owners do not own the oil and gas that is under their land. So they have little incentive to go ahead and cut deals with the operators. So it is going to be harder for them to drill. And that is the challenge they will have to overcome. What is driving the expiration . I guess, oil, big money, and also to fortify our oil reserves. There are a number of factors. One is supply. The north sea. Natural gas beds are dwindling the uks on course to import 70 of its natural gas by 2020. The government wants to adjust a problem because it is nowhere to be in the same situation as germany are some of the Eastern European countries with real dependency on imported oil and gas. They are thinking if the gases here in shale, lets get after it. Thank you so much, Edward Robinson there from bloomberg markets. Still ahead, the secret sauce behind the superhero movies. Were going to tell you why it may make you marvel. Also tina brown explains how she shook up the magazine scene with risky editorial decisions. Welcome back to the pulse live in london. Now, lets go over the top now. The battle for your tv screen is heating up. Amazon has announced its muchanticipated set top box. Talk about it heating up. It is called fire. And it will put amazon and direct competition with european Cable Companies and other big players like apple, netflix and google. Primel amazons play for time create Partnership Opportunities or more problems for the european Cable Companies . Joining us is the media analyst great to have you on the program. This changes the landscape. It is the famous words that we have talked about for six months. It is the battle for your living room. And has been going on for a long time, actually, but the battle lines are being drawn out as you say between on the one hand the incumbent broadcasters the new entrants, the likes of apple, amazon and google who are betting on the rise of the over the top services, which people are increasingly watching video via Internet Services whether a tablet or a pc or in the television. Amazon is betting on that for the future. It is very important for amazon because media such a big part of their business. So they need to be there. I went to a cable convention in amsterdam recently. Was that this was ok because despite the fact these guys are going over the top, they need our piipes. They need the Cable Operators to be in place. Cable consolidation is not negatively affected. Is that correct analysis . Broadly speaking. Tv the telcos and the pay operators have to adjust their business models. Certainly the broadcasters have forbig advantage which is the really popular tv shows, the massmarket tv shows, it cost a lot of money to produce them and you need a big audience. Andly, the likes of netflix amazon are niche but they are chipping away at traditional tv. Who will be the winners . Rice . Nt or p is this going to be a price war . You have to be the biggest, the oldest at a great price . It is hard to say at this stage. I think it is going to be the company that provides the best rates of content and the best features at the best price. Right now there are three contenders apple, google, and amazon competing headtohead. Its certainly going to be a very competitive market. You have also got the service providers, the likes of netflix, battling for position. It is very competitive. It is too early for who will be the winner. We are not at that ipod moment where you could say apple is the winner as it was a music. It is too early to call. Itv . At does it mean for itv is doing really well. Look at the share price. They are doing extremely well. Their production businesses increasingly strong. Their advertising business is picking up as the economy improves as well. Itv is doing very nicely. So broadcasters can piggyback off of some of the services. Quickly. Yer on there others will follow. It is a similar story in other countries across europe. They jump on board with everybody. I think that is right. They still have the most popular shows that everybody wants to watch. , despite the fact that we are watching more videos on smart phones and tablets, the tv set will be the center of most peoples videos and tv viewing experience for live events, for the big shows, the reality tv shows, you cannot beat the big tv set. They can make them. A lot of these broadcasters have a budget at the moment to make tv series or reality shows. Is there danger that that will change, or maybe an opportunity for the likes of amazon . They are sorely trying to exploit that. Netflix with its original tv shows house of cards. Amazon has moved into the same space. Certainly they are trying to differentiate themselves through original tv shows which they control. At the end of the day, the big tv shows are still owned by the broadcasters like bbc and c hannel four, and that is not going to change overnight. When i found fascinating about amazon is yes, they are trying to push the content, but is their opportunity to push other stuff . They are clearly trying to do that. Everything. Amazon is trying everything at the moment. They are trying to sell your groceries, your electronics, your content, whenever this. Once you get sucked i n, how much can they push down the pipe to you . If you shazaam, to get people to cross sell and pick out the prod uct. Can amazon do something similar . In theory, yes. What is interesting is that they are coming up with different devices. Kindle for books. The fire as tablet. And fire tv. They are developing dedicated solutions and adding each content form. They have done music. Now they are doing videos. They clearly want to is bigger share of our wallet particular young media as they can. I think this is a major addition to the market. It will be interesting to see how it develops. It will be all down to execution, whether they can keep various levels they have executed very well so far. So far. Thank you so much for that. Lets keep talking tech. Do you hate going to the doctor . New technology could get you off the hook. Proof allows doctors and patients to share photos and videos. We sat down with the ceo. Small to big. Proof is changing the face of mobile health and we are revelation the way patients and doctors communicate. You are trying to describe a rash it is easier to show a childe, or if you have a doing strange movement, it is easier to share video. We had doctors tell us that having the ability to see a photo of a wound, their able to keep the patient out of the emergency room 50 of the time. A year ago, captureproof started in neurology. Since then we have expanded to orthopedic surgery, dermatology, Plastic Surgery and cardiology. One thing that kept me up at night for ever was being fearful about our security. Patient photose on their phone and it is not secure, it could be a 50,000 fine per photo. We could be a function of app and create a functional app, but if we are not secure it does not matter. Captureproof has made it so that our data is encrypted on the go. There is authentication on the site at all times. No data is ever stoned on the phone or device itself. Just receive an Innovation Award from the american heart association, and two top managed Care Organizations in the u. S. Are paying customers. Proof will beure a name in every household. The ability to take two photos and share them with your doctor will have a positive impact worldwide. But what happens to patient confidentiality . I think she was trying to talk about that. The security and this will be critical. 9 still. I am not concerned about a picture of my toe but we will leave that one hanging there. We are back in two couple minutes. Signalcaptain america has made a big bang at the box office. In the u. S. It opens this weekend and expectations are high. , theen paolo scaron captain aa Winter Soldier opens on friday. , all have done well at the box office. Some phenomenally so. How do they do it . Here are four keys to marvels success. Stick to the comics. For years, screenwriters try to man because iiron thought the one in the comic books did not quite work. No, lets doaid, that and iron man grossed 585 million in his first year. The company has tried to stay faithful to the comic books ever since. Dont cast megastars. Chris henry werth was an unknown when he was cast to play thor. Ast year, thord seque made 630 million. His celebrity did not overshadow the character and marvel did not have to pay him a ton of money. It takes the universe. Years ago, marvel sold the rights to spiderman two sony which was a huge mistake. But marvel has a universe of 5000 characters with storylines like iron mans and thors that can weave in and out of each other, dating in a project like the avengers. Movies do not sell a lot of movies so you might have thought that marvel would have move the origin story to the present day. The character would start in the past. Then be brought into the present, giving him enough angst to rule a string of sequels. The first captain america made 370. The sequel is on track to do e ven better. Pretty impressive. For those listening on Bloomberg Radio the first word is up next. For our viewers, the second hour of the pulse. We will see you in a couple minutes. Will super mario surprise the market with action . Rather than words. Stepping up stimulus. China acts for the first time this year to support its slowing economy. And banking blues. Credit suisse says it lost nearly half a billion swiss francs in the Fourth Quarter. The news spreading concern across the industry. Good morning to our viewers in europe. Good evening to those in asia. A very warm welcome to those just waking up in the United States. Im guy johnson. And im lack lack. This is the pulse live from bloombergs European Headquarters in london. Also coming up, weve been talking about super mario, but lets talk about superhero success. See how marvell has found its winning formula. And hung hungry . We look at the online takeway Service Makes its trading debut. The e. C. B. Is meeting today after a surprising inflation reading t. Gets to. 5 this month, fueling concern here in europe the eurozone is sliding into a spiral of deflation. Even the i. M. F. s Christine Lagarde is putting the pressure on the e. C. B. President mario draghi needs to act, according to Christine Lagarde. Our editor, david tweed, is in berlin. A pretty robust debate taking place. It is a pretty robust debate, dont you reckon . There are three issues as far as i can see here. One of the main issues is the fact that the European Central bank can easily be under the charge, the fact that its not discharging its mandate to keep inflation under or near 2 . Its been closer to zero since november. I think its a very valid argument there. On the other hand, the second thing people are looking at, which is fairly controversial, is the veracity of those. 5 headline yes. Yes, it was. 5 , but the Vice President of the European Central bank says he expects that to create itself in april because its been distorted by what happened over easter and other reasons why it might be down, namely the fact that fresh foods and energy prices, if you withdraw them from the core inflation, thats the secondary im looking at. The third area is of interest, the whole issue about inflationary expectations, because mario draghi, well, he says inflation air expectations are well anchored at the moment. You just had christine on, and he reckon that is Consumer Confidence is rising, so i suppose as long as they think that inflationary expectations are well anchored, they can live with inflation at. 5 , hopefully. 7 for longer. Its going to be discussed in the meeting in the News Conference later on today, guy. Yeah, david, mario draghi seems to be building a little bit of consensus taking taking some action, but how do the comments play into that . We had someone on saying the markets are misinterpreting that, hes a lot less dovish than the markets think. Well, i mean, i think what hes been doing is just opening the door to further action, so i dont think theres going to be any action right now. I think that youll see action potentially later on if those inflationary expectations become unsupported by maybe an increasing an increase in the euro, or maybe a huge drop in commodity prices. Theyre going to be looking very carefully at that. Now hes opened the door to the possibility of quantitative easing, but we want to buy private assets. Well, i dont know how effective that would be. The other area hes talked about is not going on to sterilize some of the bond purchases at the European Central bank has made. He talked about several areas, but the other one was also his comments about how negative intraits could be the toll they use, because that would help bring down the euro, which would certainly give the economy a boost for exporters and also import a bit of inflation, which might be helpful. I think a lot is going to be discussed today, but for the moment, con sems seems to be the rest of the governing council will sit on their hands. Well see later on. David, thank you so much. A reminder we will be breg you the e. C. B. Rate decision and president mario dragees press Conference Live at 12 45, is 30 p. M. London time for that press conference. China has outlined steps to support the economy and create jobs. For more on the package, lets bring in Bloomberg News reporter andrew from hong kong. What does this tell us how worried chinas leaders are about an economic slowdown . Well, this is not a huge expense for the government, but does say they are concerned about the 7. 5 growth target. They only announced it about a month ago, and already theyre seeking to do some expansion spending to meet that target. Everyone is concerned about a slowdown in china, but, you know, theyre going to go ahead with this. A lot of the infrastructure does need to be built. Its not strictly unnecessary spending, but, you know, their debt levels are a concern as well. Yeah, this is more that, though. What does that tell us about the level of concern about the level of debt that is out there at the moment . Yeah, you know, maybe it says theyre not as concerned as other people seem to be, but they have previously pledged to get away from this growth at all costs strategy and focus on doing something about these unprecedented debt levels and also doing something about the pollution thats choking all these cities. This seems to be a move away from that. Its like contradiction. We had a survey out today of economists saying that debt levels, total debt, corporate debt, household debt, government regional debt will continue to rise faster than economic growth, which is 7. 5 , through 2016, and its probably going to reach about 240 of g. D. P. , which those are japanese levels that we saw what happened in japan. You know, they spent 15 years fighting deflation and now theyre just starting to emerge. Andrew, thanks so much for all of that. Bloomberg News Reporter from hong kong, andrew davis. Credit suisse has now says it lost around half a billion swiss francs in the Fourth Quarter. Lets find out what this all means. Our markets editor, manus cranny, joins us now. Walk us through what they said today and put it in the context of last time you spoke about it. 2014 is going to be the year where they do deals, issues, clean up the issues, historical issues for Credit Suisse. Today they had a Fourth Quarter loss of almost half a billion. Theyre trying to put provisions aside for their issue. The department of justice in terms of helping american citizens, this is a process that he was very focused on when i sat down with him at the end of february. We do have one of the larger issues outstanding, but we do feel like we obviously have taken significant reserves during the course of the last couple of years, and weve made Good Progress in working through them, and also i think our profile in this area is obvious al lot smaller than a number of other banks. So its hard to say. Its obviously difficult to say that to the end, but i do think were making Good Progress and working through. Just a number of weeks ago, they actually did settle their outstanding issues in regards to the mortgage litigation, 885 million. Today youre looking at almost an additional provision. So it really is progress. That seems to be the view from chris wheeler. Disappointed, but progress nonetheless. I guess litigation just keeps on coming and coming. Is this the end of provisioning for tax reasons . You could expect to see a little bit more. I thought id put it in context with u. B. S. Were almost the same kind of monetary value within Credit Suisse. Of course, youve got stood mitt certain things. Youve got to try to get off with not admitting or actually admitting they used tax evasion. Thats what u. B. S. Did. Thats the next piece in the jigsaw. Are we near the end of the dollar value of what this is going to cost you, and then, guys, what are they going to hand over to the i. R. S. . Manus, well leave it there. Thank you very much indeed. Manus cranny on Credit Suisse. Amazon has launched fire tv, the much anticipated set top bofpblgs the battle is really on with the likes of apple and roku. Apple is going to unveil some new tv products fairly soon. But also, significantly with the pay tv operators as well, it could spell a new tv delivery model. Weve been talking about over the top, and that fits into that. Lets get more now. Caroline hyde joins us now to walk through the game plan. The game plan is to make us amazon addicts. How do they do that . Well, we buy the shiny new black box for 99. From that, we can already use netflix if we happen to be a subscriber. We can already use hulu, the games, and there are more than 100. But really, what they want to woo us into is, wow, the 15,000 movies and tv shows that they offer via prime instant video. And hey, if were going to become members of prime instant video for five pounds 99 a month, why dont we just become members of prime for 79 pounds per year, which is 99 per year . Well, isnt amazon amazing . Wouldnt we just start purchasing that much more once were a prime user . That is the hope, we become amazon addicts. Theyve already seen when people buy the kindle, when they buy the hardware, they purchase far more on amazon. Com. If we go by tft, the hope is we also start becoming major addicts to amazon and purchase all our goods. They hope to woo us with some of the bells and whistles, which is the more power than the apple tv and roku. But really, what they want us to become is addicted to amazon. Com. And whos this reallying if to hurt . Apple and roku have similarly priced offerings at the moment, set top boxes, both offering 99 premium assets at the moment. But it could also hurt the slightly cheaper versions. Google has one, maybe you wouldnt buy that if you could buy into the new amazon fire tv. But interestingly, what about pay tv . You were saying it, guy. What about the likes of bskyb . What about the likes of comcast over in the United States . If we become so addicted to streaming our tv content, do we really want to pay 80 a month, 50 pounds a month for our cable . Wouldnt we just rather stream everything . Wouldnt we just rather go over the top . That is what Cable Operators are really worried about. That is why youre seeing comcast suddenly trying to sign deals with apple that they too can have this steaming offering. Directv is looking into it as well. Many of them wanting to jump on the streaming bandwagon to try and fend off the cord cutting as its becoming known. It will be a fascinating industry to watch to see who strikes deals with whom, but at the moment, amazon is focused very much on itself, i think. Back tousm caroline, thank you. Caroline hyde there with the latest on amazon. Still ahead the secret source behind the superhero move hes why, the captain america sequel will make you marvell. Good morning, everybody, welcome back. Youre watching the pulse. Lets talk about the currency markets. The e. C. B. Is meeting, press conference to follow. Youre row dollar not doing much in advance of that. Now theres a dollar component to this. Payrolls tomorrow, so think about that in the context of this number as well. But nevertheless, if we start to see movement from the e. C. B. Today, could see a big reaction in euro dollar. It has been levitating at a much morrell invited level that is justified. Single currency, a big part of the e. C. B. , speaking at the moment, we heard draghi talk about it recently. We also spoke with the bank chief. Now, he seems to be warming up to the idea of maybe a deposit rate to deal with this inflation problem. We asked him how the strength of the euro is now impacting policymaking. This is not a policy target for us as much as policy makers, but, of course, the euro, like other variables, our assessment of the economy, so in that sense, it also affects our projection for inflation and growth, and this is how we will take it into consideration. For more on what we might , i guess e e. C. B. Last month would be a perfect opportunity and now because theyre just getting more muddled, would it be difficult for them to justify . Well, it might be. I mean, i thought they might have done something last month, but my crystal ball wasnt working. So theyre disappointed. But, you know, its a tough call. I mean, the reasons for not doing anything, youve already made clear on your program that mario draghi, who i think is a wizard of oz character will just talk the talk, and he seems to find every reason remember, he was trained by the jesuit so its very al, in saying that energy prices, ive got no control over that, but the Exchange Rate, nothing talking that down, and some might argue that he thinks its a good thing, its all part of the structural competitive ajustment process thats going on throughout the eurozone. Of course, theres also the charge that actually the e. C. B. Sets Interest Rates to suit germany, and we know that inflation is higher in germany because its got an account. House prices, property prices are going up, so is the bundus bank. So theres reasons not to do anything. Of course, the refinancing rate is near zero. The big problem for the eurozone is not much to do with Interest Rates. If they did cut 10 basis points today, who cares, not that much impact. The real problem is the banking sector, and that needs restructuring, needs recapitalizing, theres been some talk of a bank of england lending scheme, although that had admittedly mixed results. But the e. C. B. Is conducting this review, and i think dont to want get that clear. The banks themselves are already clearing up their sheets t. Is going to take time for all of this to start filtering through, and for the economic recovery to take out the pace, and for the monetary transmission mechanism to start working again. What about buying packages of lines . That is not a lot of them around, but nevertheless, it would be symbolic. Its entirely possible, and that has been mentioned. Its a step towards the quantitative easing. I dont think were going to go down that route, although the bundus bank seems to have softened its stance. But the gray area surrounding the e. C. B. s legal mandate is obviously a difficult one. But within the treaty itself, the e. C. B. Can use its Monetary Policy to discharge the objectives, its mandates, which is missing in terms of both inflation and money supply. And also its charged with supporting monetary union. So whatever it takes to use the very famous phrase from mr. Draghi is something that the e. C. B. Could do. So private sector financial assets, some commentators mentioned that they may even and they can buy u. S. Treasuries, that would help bring the euro down as well. So there are certain things that they can do, because theyre up against the nominal zero bound on Interest Rates, and we know that other central banks, the bank of england, the bank of japan have had to do and implement unconventional Monetary Policy. How much and this is something we tried to discuss last hour how much will the e. C. B. Be thinking about external events, either the russiau. S. Standoff, or an event in china . Well, theyve already cut rates. Theyve practically cut rates down to zero. So really talking about what other measures can they take to try to break this logjam. Whether external factors play a role, im sure they do, in the discussion that the e. C. B. Has on the economic events does remain to be seen. I mean, i think the Exchange Rate is clearly a factor, and we have had verbal intervention, and i think many people in the market, many traders and investors think that 140 in the eurodollar Exchange Rate is the line in he sand. The real risk is they do end up like japan, which has a stronger period, so a stronger euro as real Interest Rates go up is also something that i think theyre pretty much aware of. Thank you so much for your time today. Back in a couple of minutes. When everything is n your home is connected to the internet, of course theres a good chance your connection speed will suffer. Thats unless you use technology from an israeli company. Our middle east editor has more. Elliot . Thanks, francine. Im joined now by the founder, c. E. O. , and president. Great to see you with us today. There are so many devices that weve got, theres going to be more when everything is connected online as well w. All of these devices competing to get online, how are you solving this problem . So as you rightfully said, there are plenty of devices, and the numbers keep growing exponentially, the number of connected devices in the home is just ramping up very well for us. Just as an example, i have four kids at home. For me, my wife and the kids, were talking about all together about 10 connected devices, the iphones, tablets. When theres family coming over, this number could double and triple. All together, this is generating tons of traffic, and this traffic is all about small pacts. Now just to give you some kind of an analogy, taking you to this fifth element film with bruce willis, you may recall this scene with the flying cars all over there. So theres traffic going over the air, but without air traffic control, this could end up with a big crash. Youre the air traffic controller. Aurp were just like the air traffic controller, and with the number of devices that are transmitting over the air, without the air traffic control, the service drops substantially. Were managing this traffic out of the gate. And you can also theres intrigue to that, and you could actually make your phone more important than your son or slow down your kids video, but youve got some pretty important investors like cisco and liberty global. What do they bring to the table for you, just a good customer . Well, with liberty, the largers cable operator in the world, its very important, and its also fine that says this company is using new technology, were using it and were happy with that, so working with this customer, they develop the best technology, which fits the best application which are available now. And just review, some 68 billion. Any financing i. P. O. s, too soon for that . Well, i guess its too soon for that. We might go for new financing. The company is growing quite fast, so based on our needs, we may go for that. Ok, the c. E. O. , founder, and president of celeno. We wish you the best of luck, and francine, celeno was the daughter of atlas, who carried the earth on his shoulders. Back to you. Well, i department know that. There you go, a little bit of mythology. Elliot gotkin, thank you so much. Coming up, a force of modern media. Tina brown explains how she shook up the magazine scene with some risky editorial decisions. Were going to find out where shes been. And later, the titans of tech announce new launches. Amazon makes a splash in the world of tv streaming and microsoft plays catchup. Were joined by a senior european editor. Well discuss the latest announcements after the break. Welcome back to the pulse live from europeans headquarters in lone done. Im francine lacqua. And im guy johnson, and these are the Bloomberg Top headlines. China has announced a new stimulus policy as the company will sell 24 billion worth of bonds this year to Fund Railways and social housing. The stimulus includes giving bigger tax breaks to businesses. Nato is warning russia that any further invasion into ukraine could be a historic mistake. There are as many as 40,000 russian soldiers along ukraines eastern border. That is raising concerns of an invasion. Its difficult to speak about expectations here because we have seen a very determined russian action in crimea, but e urge russia to pull back its troops to live up to its obligations and engage a constructive dialogue with ukraine sooner rather than later. And you can watch the full interview tonight on charlie rose right here on bloomberg television. Now the i. M. F. Is also sounding the alarm. Christine lagarde says russias soundoff with the u. S. And europe over ukraine poses a threat to a global economy. I hope for the program to ukraine to work, and im looking with my narrow lenses of economic and financial stability. Its a geopolitical tension go away, calm down, so that that country and its people can actually recover. Lets look at how the markets are trading this morning. Our markets editor is manus cranny. Weve got a little bit of uncertainty. The big risk for you, if youre day trading in these markets or very near term, it actually does not act. That would stand a very, very clear signal to you as an investor that youre going to have to do wait and see services. Its lower in the united kingdom. The governor of the bank of england is in one of the newspapers saying you might get a rate hike before the general election, so thats putting pressure on. In the u. S. , we had the report yesterday, the private report on payrolls beating estimates, coming up in the 190s. S p 500 making a new record yesterday afternoon, 1883. 9. The question is this, china doing a bit on stimulus. Will the unemployment numbers be better tomorrow . The one big thing, and its a tee coupling of central banks, no matter what janet yellen says, do you believe youre on a downward trajectory in terms of action from the European Central bank . Are they going to get easier . Is money going to be cheaper for longer versus the overall recovery play and trade that you may have in being overweight u. S. Stocks . That is the decision that you need to make as a longterm investor. Those are the issues, the Different Directions and trajectories of two of the most important banks in the world. Thats my thought for the day. Manus, thank you so much for your thought of the day. Many thoughts of the day. Now just 20 minutes from now, surveillance with tom keene, he joins us from new york with a preview. Tom, what are we looking at today . I cant do a thing with my bow tie this morning, francine. Im sorry for that. What you know . We need a new bow tie, tom. I need a flash bow tie. Its my next book. Weve got Michael Lewis coming up this morning. Im sure youve heard about the uproar over in new york. Wall street versus michael lowe, theres lots of yelling, lots of screaming. Were not going to do that, folks. Were going to have a cogent conversation over the wall street rigged, is wall street unfair. Representing wall street, kate moore will join us as well from j. P. Morgan private bank. Well talk to miss moore about the enthusiasm for equities, the back drop there, theres a better macro economy. Joining us, jillian will join us from the financial times. Well talk to jillian about life masters exiting j. P. Morgan. Jillian with a terrific perspective on the 27year career. Yeah, im a big, big fan of jillian. In terms of china, i guess it depends on how the markets interpret the u. S. This package, whether it means the chinese leaders have everything under control or whether theyre a little bit more worried than they let on to be. Yeah, i think theres a huge debate there. The china beige book people are exceptionally cautious, and on the other side of it is a china bull. Theres a wide debate as we look at the secrets coming out of beijing. Very tough to interpret. We see chinese laun a little bit weaker this morning, 6. 21 lawn per dollar. Im looking forward to the show. I know youre going to try to have cogent conversation. I think five minutes into the interview, there will be a little bit of shouting and screaming with Michael Lewis. I hope not. Well see. It will be great. Were on. Its a bet. Were on. Amazon now. Surveillance in 20 minutes right now. On to apple zofpblet the latest of the tech giants to join the battle for streaming supremacy. Launch of its set top box, well put the Internet Retailer in direct competition with european Cable Companies, global Cable Companies, big players like apple and google. Is it any good . This is the senior european editor who joins us now. Is it any good . Well, its basically a smartphone, a midrange smartphone without a screen on it. Its on your telly. So technologically, its nothing special. I mean, im sure a lot of people are going buy it, especially if they own the kindle fire tablet, if theyre used to the amazon store. On amazon, they describe it as the amazon streaming service, you know, so people buy it. But people are savvy nowadays, and they tend to stick with an ecosystem. Apple users are going to stick to apple tv, even though apple tv is kind of outclassed now by this amazon product, because its like, whoa. So theyll stick with it, because they want their movies they already bought and theyre used to renting, so same Android Users will be more enticed by chrome cast, which is a bit more limited in what it can do. It fits in your tv t. Can do less than the amazon products, but its much cheaper, a third of the price. It seems steer drawing the battle lines. This is a game thats about to get hotter, that is about to get rougher and much dirtier. Whos going to win . Is it on price or amazon . Because if i have everything on there, then its easy. When i think it comes to hardware, its a battle about price, because people are looking for a quick solution to make their Television Smart and give them access to their mobile media. And then it will will be price, and cost wins. But when it comes to investing in something new and maybe switching an ecosystem, leaving apple to go to android, then i think its a rather compelling experience. And this is something that could happen with the apple stpwhron product, if they have a compelling game. This is a device which can play games, something apple hasnt been able to do, delfer an apple tv. If a game comes along that sort of works on android, works on amazon tablets, uses the new controler that comes with amazon products, and its compelling and the kids at school want to play it, want to play it, so your kids want to play it, that is missing right now, and i think that sort of experience will be the deciding factor. Is it a big advantage . Amazon is an android platform. It is. Built on android, yes. How big an advantage is that . Its a real advantage, because it means that so android is huge, and the google part of android, which is Google Services running on android has a huge number of followers. That means developers, theyd be crazy not to, to serve that market. They can very easily put thoseance on the product, which is a big feature. The difference is that most people buy their apps, spend money have, their credit card details locked in with google, and their purchases wont carry over to amazon. So developers can say, yeah, well support this on amazon, but you cant say only going carry all my android purchases i made over. Amazon is in a strong position. What is amazon looking to become . They want to deliver groceries, take over our telly. Is there a point where theres going to be a consumer backlash . Is it going to be too much amazon . This is a really tricky question. Because theyre actually quite we arey washy when you ask them. We asked them, is this a game zphole are you ready to market amazon as a game console . They say, no, want really, we look to the market, and we try to understand what it wants. Its like market creation. That means its very unproven, very untested. Ultimately we do know that theres a lot of interest in more devices going on. Theres been some failures, and amazon has enough clout there was a bit of a failure, but amazon with its manufacturing clout does have clout to live where others happen. Youve got the tablet, you can shop on that, its a shop window as well for anything other than content. How do they its games. You plug a keyboard into it. Could you turn it into how much more can you control it . You control from your phone. Can this become the central hub in which the house operates under . I dont think its going to become a central hub, but is that where were going . Are we saying were going to have one box that does everything . I really you know, that would be nice, but i dont think so. I think we have a division between mobile and immersive, so we have mobile products and amazon is habit, really a mobile product. You have immersive products, big tvs, people investing in immersive gaming, like the playstation 4 and the xbox. I dont see it happening, because some people just want the mobile on the cheap, and others want to spend big. And weve got such a mix of companies that theres healthy competition. But it would look so much better. Sheriff, very quickly, whos going to come on top . I know its difficult at the moment because its still just the beginning, right . But if you look at netflix, if you look at roku, if you look at apple tv, at the moment, who are you seeing as the top three real contenders in this game . Based on history, my guess would be apple. Then again, apple is really being shown up right now for its lack of activity. Apple, im sure, will bring gaming to the next apple tv. Theyre working on better controllers. Theyve got a very powerful chip, the a7, which is in the new phone. But they havent done it yet. So amazon has picked them, but, you know, my bet would still object them, so long as this new apple tv doesnt take a new time to come around. Thank you so much for that. The senior european editor. Talking of content, marvell studio captain america sequel opens this friday in the United States, and expectations are high. When it comes to superhero movies, marvell seems to have found a winning formula. Where many have failed. Sam has this report. When captain america wind soldier opens on friday, it will be marvell studios ninth movie in six years, all done well at the box office, some phenomenally so. How do they do it . Here are four keys to marvells success. Stick to the comics. For years, Hollywood Screen writers tried to redo marvells iron man story because they thought the one in the comic books didnt quite work. My turn. But then marvell said no, lets just do that, and iron man grossed 585 million in its first year. The company has tried to stay faithful to the comic books ever since. Dont cast mega stars. Chris hemsworth was a relative unknown when he was cast to play thor, which made 450 million in it came out in 2011. Last year, a sequel made 640 million. Hemsworth celebrity didnt overshadow the character, and marvell didnt have to pay hemsworth a ton of money for either movie. It takes a universe. Years ago, march vel sold the rights to siderman to sony for a pittance, which the company now knows was a huge mistake. But marvel has a universe with storylines like iron man and thor, which can culminate in a mega project like the avengers. And finally, never forget the sequels. World war ii movies dont sell a lot of tickets these days, so you might think marvell would have moved captain americas story to the present day, but the studio took the long view. The character would start in the past, then be brought into the present, giving him enough fish out of water angst to fuel a string of sequels. You know the first sequel is on track to do even better. Ok, they nailed it. Lets go from superhero to the chancellor of the exquebec or. Were going take to you parliament, where George Osborne is giving testimony to the select committee, talking about the budget. He says the u. K. Economy is showing a more broadbased recovery. Good morning, everybody. Welcome back. Youre watching the pulse. We are live from our studios here in london. London is still hungry for listings. Today online takeway service just eat began trading. Its shares are surging. Manus cranny is here with the latest. What are they buying into . A food retailer, but also really online. Yeah, i mean, put the two together, i read lots of different articles, and the food dent go through the tech revolution. You run takeways, but im not going to say, hey, do you want to list your takeway on my website. Ill help drive orders to your kitchen, directly to your kitchen, ill sell you a kit, and it will solve your ecommerce problem. Ill charge you 600 pounds for it, and when you get an order, ill take 10 to 10 off the top of that order. Why . Because when i get people online to look at just eat, typically, typical when will did you online, you buy 30 more food than you would do if you sat down at a restaurant. I can see johnsons mind clicking over, hes making it up again. Youre a monitor. Youre a monitor. Im stunned at how much this works. Im not being funny. This is worth 1. 4 billion pounds. Lets go to the app. Lets go to the app. You know what . Its near the end of the show. Im a tortured soul today. Theyre crazy. Theyre crazy. But basically, the maximum price, 260 pence a share. So what am i buying . Youre buying i mean, you use the word domination. How many takeways have signed up so far . Theres over 30 restaurants in four con nents with six million. Thank god they used it. The Favorite Foods on this . Didnt get that, but id go fore i put in my post code, and its actually indian and chinese. Shes on food today, shes on fire today. I mean, we talk about valuations, is this a problem with evaluation, because theres so much appetite for an i. P. O. , or is it really worth 100 times. Its not to me to have an opinion, or should i be so disparaging of it . Its a business model. The market has valued it at that. The market is convinced by this deal. We dont have any technology who says hes not running the business for profit. I think hes being slightly tongue in cheek. Bottom line is they have scale. Its a hard one to crack into when youve got somebody locked into your ecosystem. Talk about the global story. Global competition . Amazon could do this. Yes, they could. Ill leave with you this one thought, and then weve got to go, which is they have no quality which leaves but idea if youve got the three or four best takeways in your area between your house and my House Railroad company they signed up on this today . Theyre the people who are doing the volume in terms of curry and chinese. Manus cranny with the very latest on just eat. Back in a couple of minutes. Welcome back. We have a nice bloomberg exclusive. Our bloomberg report has just heard from frances new finance minister. Mark, he was disappointed yesterday, so give us a highlight of your chat with him. Well, theres two theres two subjects here today, as he takes power as finance minister and at his side as industry and economy minister. So its ago interest split. Asically hes going to be in talks with brussels about how they should cut frances deficit, and he said hes hoping to he wasnt clear. He wasnt clear on what that speed will be, but it wont necessarily be with whats agreed with russell. The other subject here is how they will split power. He said today that hell use his power as economy minister to fight deflation and austerity. So were raising some interesting questions. Well have to see where the new government takes them. Any sense that his politics could move towards the center a little further . Both of these guys are pretty leftleaning when it comes to the political spectrum. Well, the key in terms of moving to the center, to put it that way, i think the key thing is to what extent they can continue to push reform, and what political maneuver there is in france on that front. I mean, hes been terribly emphatic that he wants to speed up on that topic, since he lost heavily in local elections earlier this week. But were still waiting to see the proof in the pudding. The next two weeks are going to be intense talks between paris and brussels on both of these subjects. Hes repeatedly said 50 billion euros in spending cuts are coming. Mark, thanks so much for all of that, Bloomberg News News Reporter there mark deen bringing us the chat he just had with the newly appointed french finance minister. The chancellor of the is talking about all kinds of things, needing to keep a close eye on the Housing Market in the u. K. In fact, we are now getting a more broadbased recovery. Lets talk about the pound. We had news over the last 24 hours, a weak Service Sector number coming out. Were waiting for draghi coming up in a few minutes time. But the u. K. Also being affected by comments, indicating we could see a rate hike this side of the general election. Now a reminder, bloomberg tv will bring you full coverage of the e. C. B. Rate decision and president draghis press conference, News Conference, thats a little bit later on today. Now should we have a look at what to watch . Caroline hyde has been briefing herself on whats been happening surrounding the story, surrounding the stock split. It is basically a stock split, 330 million nonvoting class c shares will come to the market today. They hit the market typically with a dividend, but basically this has been going on for two years, and it gives control to the founders. They maintain control of google as a company, and basically anticipate that these two shares that will now exist in google will move in lock step, otherwise there will be arbitrage to be made. Fascinating bit of maneuvering so they can reward their own employees without diluting the main control. Control. Exactly. Caroline, thank you. Watch out, of course, for those google shares, and we have the European Central bank were watching out for. Well bring thaw News Conference live. Yep, we will certainly do all that. Surveillance is coming up next on bloomberg television. Tom keene and the team will be taking it away. We will see you tomorrow. Have a great afternoon. This is bloomberg surveillance. Wall street is rigged and unfair. The debate rages on. A conversation with Michael Lewis. Julian tested in this hour. An improved economy. Driving stock basis higher. Good morning, everybody. This is bloomberg surveillance. Live from bloomberg World Headquarters in new york. It is thursday, april 3. I am tom keene. Joining me is adam johnson and scarlet fu. China announced a new 24 billion dollar Railroad Expansion aimed at creating jobs. In europe, the Service Sector productivity holds near a threeyear high. The ecb will announce a rate at 7 45. At7 4 pimco investors withdrew more money from the flagship on fund. Total up the 2 million has come out year to date. Weekly jobless claims. U. S. Trade flows