A very warm welcome to the pulse. I am manus cranny. Go, than 48 hours to scottish voters head to the poll and decide whether to become an independent country or stick with the union. David cameron made a final plea for no vote. His opposition leader, edward miliband, its set to do the same thing. Alan crawford joins us. You have got to say, it was a lastditch impassioned plea by the Prime Minister. Well, the first indication we had is the herold newspaper has come out for no. In that sense, she has of the result, but yes, and impassioned plea. Anythingd to imagine like this. The Prime Minister pleading with scottish voters to stay with the union. Very much a heartfelt message. At one point said even if you do not like me, i will not be here forever. If you do not like the conservatives, they will not be here forever. If you vote for independence, there is no going back. He said it was no each trial a divorce. What it was impassioned to be followed by the opposition, ed miliband today. What is the latest on the campaign trail . I watched salmond and his counterpart darling and they were talking about is being a very dirty moment. There was a split between the parties. Certainly, there has been rather ugly accusations of internet of bullying and so on. My experience in edinburg a which is [indiscernible] very peaceful demonstration foryes. At the same time, there were groups of people, vigorously debating the issue. Ye re acutely aware they are acutely aware that in the eyes of the world are on a them. We just heard a Government Official in spain. If it was a quiet resolution of building behind, it is hard to predict. Certainly, the yes campaigners are in the worst course today or the vast majority of the population lives in discounting. Allen, thank you very much. Alan crawford in edinburg. Minutes, my conversation with i financial author. He said an independent scholar could become one of the richest nations on earth. Why . Well look at that question. Of Political Uncertainty in france. One of the toughest weeks before resident hollande. Faces a confident vote in parliament. A failure to win could plunge the country into new elections. Manuel said in the french still have faith in their president. I do not believe it is the knowt and i even do that i if there exists a moment to question the president elected. I do not think that is the moment. To question. Proposing the resignation of the president or the dissolution of those who loveof governed and of spire to govern. Is up against another challenge this week. He has to meet the press on thursday following his exgirlfriends tell all book. His Approval Rating is hovering around 13 . That make some friends most unpopular president frances most unpopular president ever. If you have not noticed, it is London Fashion week. Burberry shoulder their latest on looks on at the catwalk. The First Flagship show for christophero, bailey. Guy johnson asked him if his main concern is taking risks on the runway or the bottom line. Are indistinguishable. We have to keep moving forward and do new things at have innovation. And we create something we believe in, so our customers get excited. Is of the pressure to take risks growing on the catwalk . It is always the same. To have basically 12 minutes inspire people. Sometimes that means you may do something unexpected and sometimes the feeling is it you want to do something more familiar. This business is about feeling and emotion and that has to then turn into something very tangible. Which is what . Emotion that turns into something tangible. Bit part ofy is a something we are doing. Instagram, everything. In terms of the story. Is it turning into an arms race . Is burberry known for its technology . It is indistinguishable today. A company cannot just live in a little siloed world. Technology is hugely important for a is as is music and craftsmanship. It is about being curious and making sure you are part of things happening and make sure partnerships and build longlasting ones. It can be with craftspeople or Technology Companies or musicians. If you ever wanted what standing by the ceo like that is getting a nervous. Caroline hyde joins us now. Interesting that the bailey, he personifies molding. Revamping a brand and delivery stellar stuff on the catwalk. Is Fusing Technology and fashion. Creativity and having to answer to show holders. And hehe chief executive is under a lot of pressure, is a team . The last time he isnt he . The last time he met with shareholders they voted down the 20 Million Pound buyback package. It fragrances, the face of is on the front row. Inspirationg for for his overall runway focus. Always destined there also experimenting. They were also experimenting. She had a musician. Had a musician. It was more about the makeup. Immediately on twitter. Not just burberry doing get. Cap shelf also experimenting. Top shelf experimenting. Democratizedppets, London Fashion week. They love that word, dont obey . And dont they . They were able to see on facebook first. [indiscernible] [inaudible] t o top shelf has always pushed the envelope. We are talking about the amount of Fashion Technology in london bring boutique ways of selling things. It is all of about taking get off of the high street and getting us to buy immediately. When you talk about buying is the risk. They had a fire warehouse. Whether it is a profit warning. Personifying the volume play online, doesnt it . It shows the amount of money we have to invest. Do not have toou put cash into brick and mortar. When you get as big as asos, you have to invest in a way of getting that clothing out of your Distribution Center. It had a terrible fire june 20th. 20 of the inventory was over went. Clearly, that issue. Wasr 20 of the inventory uin was ruined. They are trying to push into china. You have to be clever trying to push into these markets. [no audio] they have to not just look at when you on the runway do is a u. K. , have to see eight or nine or 10 different ways of viewing the products was that they want to touch it and feel it. They have to be novel and of the ways of that are looking at different markets and penetrating and investing. That is why profit is not going to go up next year. Look at therefore a share price. A 5 drop. Millionis more than 3 3 billion pounds wiped off. It has been a poor red 2014 but a great decade for asos. 2014, but a great decade for asos. Would you buy that new burberry trench coat with the new colors or the traditional . The butterfly colors . I am still going the traditional. Maybe a little bit of gold. And the black nail varnish. It is on facebook. Black nail varnish. Yes campaign. That is the argument. Find out why our next guest think an independent scholar scotland could become one of the richest nations on the earth. Time to our big focus. Less than 40 eight hours a goal, scotland decides. They will decide to become an independent country or stick with the union. Our next guest said it has all of the hallmark, all of the hallmark of the characteristics to be, the richest country in the world. The richest country in the world. Scotland is going to become over this road, all of the ingredients to become the richest country. If you look at the richest countries on per capita, the cia all havend world bike a list each year in at the top the likes of brunei, norway, singapore, luxembourg, switzerland. Some of these countries have gotten their wealth because they of they as some because have turned themselves into Financial Centers. And the regulatory options that were chosen to turned themselves into Financial Centers are available to other countries but the one overriding characteristic of the all of the top 10 has is a theyre all small. Populations of less than a 5 million except with the United States which is ninth. Lookcotland, if you take a of scotland, it is small. Of less than 5 million. Second, it has some oil and third, the opportunity to take on the same regulatory decisions as singapore or luxembourg and one of the other countries. There is no other country in the world that has of that. No other country has the oil and financial. Countries you cited are geographically small and the infrastructure and technology as the cost of setting up his left for scotland to compete on the same leveling phil. You have to devalue the currency and Corporate Tax rate. They would have to learn to live off of their tax. It is a big problem. Probably will not be up to spend as much money. An issue that salmond has avoided. If it were to achieve i am talking in a theoretical i know. W, if it was to achieve this, it would have to make hard decisions. One thing i noticed, i may be wrong about this, i think it is quite left wing dominated. I described is quite a kind of small state right wing kind of model. Finally, it might contradict the politics of salmond. You are saying yes or would it mean spend less . That would mean that alex m a has a misrepresented salmond has a misrepresented the yes campaign. He has not said what his tax structure will be or if he said to me. Is not clear we had a guest from Oxford University and he said going back looking at the numbers, you have independence a you was cease to have a transfer but you would have oil reserves but we do not know the price of oil. Be400 tizen would each citizen would be 400 pounds worse off. You do not have the money for the promises salmond is a making. Of my book isme that Government Spending gets in at the way and i think it is good. It needs a bit of tough love. If we look at the big debate, it is currency. Say the currency issue not that i like to interrupt. I would really dispute that it with you. Nobody is saying they cannot have sterling. What is very, very clear is that alex salmond does not have a plan b. He thinks everyone will roll over on friday get from sterling. Englands governors have made it clear you have to give up some power if you want a currency. You have to give up a bit more. I am of the view theres a great deal of misinformation being put out about of the panel. Nobody can stop scotland from using the pound. There was something going around the scotland could not use the pound and of course, they can. I was kind of ok, ok. What they would not have is if people do not mellow on their positions, they would not have monetary policy. At the door is the fastestgrowing economy in south america and it is using the of the ecuador is fastestgrowing economy in south america and it is using the dollar. May be we will see that dean national is a de nationalization. It is pretty obvious to me that if it makes isy, to you is where the world is going. Crypto currencies is much more efficient. Do we not trust currency anymore . Do i not trust the euro . Toyou have no choice but trust it because it is the law that you use it. If you think about how many times you cross of the border per year, maybe 10 or 20 times a year and few think about how meantime to cross online, it could be hundreds of times. Scotland has an opportunity to be the first to blaze a trail to be the first promising that of the first government currency based on bloc technology. I do not think that salmond is thinking that. He is carefully he probably has ideas in place hope they yes a few more things and ideas. Dominic frisby, life after the state. We are back in 2. Welcome back to the pulse. Thank you. Look at it the map below me. A day of losses. The ftse 100 is down by 0. 25 . The fed meeting starts today. Independence vote over in scotland, the referendum on thursday. Our eyes will be glued on the numbers. The equity side, some big movers. Asos down. Thest 70 off of highs for year. You do not tell them next years profit will be flat. That does not go over too well and that is what is happening with asos. Durant wants to go to the spanish carrier. Orangeranch wants to wants to go to the spanish carrier. The big one we are watching is sterling. We are down 3 . Down below 162. Big call from jpmorgan. If we get a yes vote on friday morning after thursdays could drop sterling another 6 , 7 . Something to think about. All eyes are glued. Thanks for that. We will bring down the numbers after the break. Tel avivs top innovators come together to show the latest startups. We are waiting on the cpi numbers to come. Straight after the break. Monts on month, we are expecting month on a month, we are expecting a rise of 0. 4 . Welcome back to the pulse. Live from bloombergs headquarters in europe. The u. K. Inflation data that mark carney and his cohorts will be watching. 1. 5 which matches the estimates from the analysts. Ery much in line of course, 1. 5 below target for seven months in a row. The target is 2 . More latitude in terms of what they do with a rates. The longest under par inflation since 2009 when we saw undershoot for six months in a row. Lets look at stirling. Sterling has been lower on the back of the scottish news. Virtually no reaction. We are only down by 0. 3 . Days in aen down for2 row. Level holding at 160 since the july a multiyear high. Come. More to jobless claims and the vote and retail and the vote could take it down to 150, which is what experts have been telling me. Breaking news. Their scooter business has done a deal with machendra. One of the biggest producers of tractors. Access to technology for them in terms of doing the deal. It is going through his own reformation. That is technology. Ut. To buy peugeo that is a bloomberg exclusive. Rom scooters or inflation. Lets talk about netflix. It is expanding into six and new markets. The largest streaming Video Service faces regulatory hurdles localmpetition from a media companies. Hans nichols joins us for more. They are marching into europe but they need to get it right. They need to go local. Local. Local content and they are on international. They want to bring to customers in germany and switzerland and france and belgium, those are the new markets they are entering this week. You have 200 million people, 80 million broadband. Compare that to the market in china. Ceo is very clear. One way to get to them is you will lose money at first but you need original content. It will be challenging to be profitable. We have a lot of content and we keep getting more. Gothe long term, if we five10 years, we should be profitable. It is just like you are reporting, original content and then you get the viewers. What they want to do is to expand internationally. They have 50 million subscribers is in the United States. They want to see growth of buff and beyond. They want to get 6090,000,000 in the states but they want in out of the states. There are challenges. What do you do with programming that has been licensed and programming to entice new viewers . Clearly they think their show will be a hit. We are doing both. We are licensing a local content and developing local content and commissioning a series marseille, set in a marseille. Of course, our great originals like origins the new black here in france. The goal is to generate 80 of the revenue outside of the u. S. They saw 85 ear, jump. When you get the european market, it can be 20 of their expansion. See many more new countries added to netflixs suite, so other people can download and watch. Chris i know you are an International Correspondent a you cannot live with the house of cards. Do you get a in germany . Here is my challenge. You can get it on sky deutsche. They are not up to speed on everything coming got in terms of seasons. You cannot get it on netflix in germany the cost is already licensed out. I am not advising this or saying to do it. If you use a virtual private network, you can track the you are in thinking minneapolis a you can watch it that way. It could be a guess the law and try it at home. Week, with warnings, we do it we come with a warnings here, we do everything. Hot shots. Prehistoric old city played host n active the monster. Reader taking the top position. Boarders took off the challenge of icy, cold ambitions when they in the harboread competition. They jumped and flipped putting on spectacular shows in the process. Skills do not get much better than this. Pulled off a skillful moves and demonstrated trick shots. It contains mathematical or seizure, imagination. Ever haveve you you ever driven a truck that can climb walls and go vertical . Theres a new vehicle that can do all of that. Before the u. S. Military does it , it has to go through tough testing. How do you drive it . It is a great opportunity for myself. Hestside of milwaukee, enshrine a heaths drive a ton00 military vehicle vehicle. He is the test driver. The oshkosh corporation. Isnt tight competition for a 20 a milliondollar contract to replace the humvee. It is in tight competition for a 20 Million Contract to replace of the humvee. The dod has asked for a new veal global. It must pass a rigorous process. Oshkosh is set up at headquarters. The track is short only about a mile long to replicate the very worse off world conditions are from anybody anywhere in the world. We have features to put the truck in the paces. He makes sure oshkosh trucks can pass through a battery of cast. Lets start with the grade. 20 and aades between 60 of left to negotiate the grades. Ifoal to a side slope we go to a side slope where the angle is to one side, it is a measure of stability. The third thing we have is our vertical step. This is literally a vertical wall we need to ascend. How are we doing . We are doing great. It is one of three finalists and of the 55,000 truck contract against lockheed martin. The winner of the new contract will be announced next summer. I would just love to have one of those where i live. , it is the online a fashion statement made in london. Fashion week wraps up. We will look at how High Technology seized the spotlight. Er joins me to talk about selling luxury online. A company can not a live in a little siloed world. Technology is hugely important such as judges so is a music and music andhip so is craftsmanship. You have to make sure you play your experiment. Sometimes be with crafts people and sometimes Technology Companies or musicians. Probably the most sought out after ceo. Christopher bailey talking to bloomberg about the increasing growth of technology and the fashion industry. Research suggests that the Online Retail could be worth more than 40 billion pounds in less than six years. Join me as one of the online pioneers. And we are joined by our correspondent. Caroline hyde. Thank you so much for coming in. We were just chatting. We are on a journey. ,retty exponential journey about technology and fashion. Do you thing bailey has arrived at burberry . You have seen incredible things. Bringing something much closer to the consumer. He is a real pioneer. He has done exceptional things. Brandthe growth of your has been phenomenal. You started with a brick and mortar. Fashion. Com is now 70 of your business. How is people gravitating . We rebranded the business because we wanted to create an experience that was a Customer Experience of our brand through mobile, technology, or physical. Is really by international growth. 70 of our Online Business is international. Countries. A large part is around the Technology Enabling it to happen. It is a big part of digital and the Product Selection of all of the key brands. You say time is the greatest luxury of all and ironically, i enjoy shopping. Great editorial content and phenomenal brands and caroline and i were chatting maybe that is not how like you want to be perceived. It is for the wealthy, time deprived searcher, isnt it . It is about time. And beingss of wine able to select and having it delivered to you the next day has to be great to lecturing. People say to me how can be a experience . It gives you the time to make the decision. It is how we bring in and editorialize the conversation about brands. Part of our dna has always been emergingbracing talent. We have about 50 british labels we carry. We can have these incredible labels like stella mccartney. If we are doing new and emerging brands like markets wish on this andrnoon, an unknown brand we bought at the label and we were the only people to stock their. Within two days of his arrival, completely sold out. What makes the decision . It is not to me. It is the talented a buyers. Givesabling of technology a voice to the brands and labels an editorial is a. Increasede they have leaps and bounds. It seems like they have increased leaps and browns bounds. Where has technology not moved fast enough . Where do you want to see it to move on the likes of me and manus and not worry . It is not a clear area. Spentaid earlier, we houses of years on the high street and we have seen this Incredible Development of technology and what it is an able and businesses to do. One of the areas we want to see improvement of size and fit at how the customer can understand what is relevant to them. It is around personalization. One of the great things about being a brick and mortar digital and it is now a business was a marketing opportunity. How we may closer to the physical experience. Its about how we communicate with the customer and personalize. Give us a sense of the size of your team. How many buyers, how Many Developers . Year, online grew by 125 . A 3000 working out of square foot of space which was distributing our products. 100 80,000 square feet and we are looking for more space. To bepartment they used the Distribution Center is the tech team. We have 60 people working for developing new programs that we will be introducing. Fashion week. [indiscernible] and up to 33 14 online. It is about technology and marrying the 2 together. Is that the secret . My experience with brick and translating to online . It is customer choice. How the customer wants to engage with us is the most important. Whether mobile or through shops we dothe around the globe, how the customer wants to engage. We need to make technology and abler. Which countries are doing it well and embracing . I think the u. K. Is pretty advanced. City and the whole project being done. In you were there as well, werent you . Thing, the exciting journey we are going through. We are doing well. A great opportunity. A very engaged any other countries we can learn from . Were always looking to see where we can learn from. Always looking at technology to thesin but making customer purchasing much easier. When you look at London Fashion week, facebook is team go with top shop. Newall of them are trying forms of engagement about making get much more commercial. Is it a ubiquitous, are you happy with what you are seeing at fashion week . What do you think . It is such an exciting journey. Cannot have been five years ago. Fashion is much more about the consumer. We did a project at week with a designer during new York Fashion Week and we presented the Product Available and it was on site the next day and she sewed our pretty much the next day. The immediacy that the Technology Brings us. Tom, great to have you. Chapman. Matches. Com fashion and caroline hyde. Green Energy Future as they weigh out independence. After the break. Welcome back to the pulse. Live on bloomberg television. It is time for new energy and when it comes to the energy of scotland, the fiercest debate. It has an impressive record of new Energy Resources and independence swings and of the balance. Major role. Play a tom gibson reports. Wind, it isenses in knows a prize that scotland has been the flag for wind power. It is on most 50 of scotlands energy. By government wants 100 2020. North of the mainland, that is the case. These islands produce a more that they can use. There is much more than went power. Wind power. A first applied energy into a national grid, the first time it was done anytime in the world. This is not easy. This site is part of the emac. It was set up 10 years ago to thelop marine devices for future. There is good room to invest. They think a bit of that u. K. Energy can come from the sea. Are workinggineers on power that harnesses power from the sea. On another part of the island, conditions are better suited for title devices. It uses the currents. Most and development, turbines at the dusty b at the sea bed. This is a floating turbine and it harnesses tidals at the surface and being relatively cheap to construct, it has other advantages. It is floating. The vast majority of the situations and they can be accessed. Run plays a by a commercial device that will generate eight times as much as powerfulg it the most device in the world. Whether an independent scholar makes of the most of the oil, the levels of innovation in alternative technology is second to none. And appends directives to discourage green investments. The question may not be if they will be carrying the world but whether or not they will still be in scotland . Tom gibson, bloomberg. Radio,those listening on first word. We will keep the spotlight on scotland ahead of the vote. We will look at what the vote means for the oil market with an. Nvalid Energy Analyst the french Government Faces a confidence vote and we are live in paris to see how president hollande can held to one of probably the toughest weeks in his tenure. A week from hell for ho llande. Britains Prime Minister makes a lastditch plea to scotland voters. The new Creative Force in charge of burglary. Burberry. And has to turn into something tangible. Being online fails to boost the bottom line. Shares tumble on a profit warning. A very good morning to our viewers in europe. Good evening to those in asia and a warm welcome to those waking up in the United States. This is the pulse. We are live from the European Headquarters in london. The toughest of weeks for president Francois Hollande. The Government Faces a confidence vote in parliament. A failer a failure to win will plunge the country into new elections. Faith inh still have their president. I do not believe this is the moment, and i do not know if there exists a moment to question the president of the republic elected by the people. This is not the moment that Christian Jacob can question institutions. Greg joins us from paris. The french government is expected to survive. There is not much in the margin. There is a bit of risk. There is a little bit of risk. Is exactlyparliament half the feet. They are likely to pick up a few votes here and there from some of the centrist parties. Socialist group of lawmakers who say they will not support the government because they are angry about what they consider to be the kilts of the government, they will abstain, not vote against. The government will survive. The point is it will not look good. It is going to put the legitimacy of the government into question. Francois hollande will walk around that much more wounded, but they wont most likely survive. We are seeing images of Francois Hollande trudging doing a his ex partners kiss and tell book. , from thepresident british perspective, that is under pressure. He gets to talk to the press. He has a Big Press Conference on thursday. When he has one of these conferences, it seems to be after female trouble. The last Major Press Conference were after him and julie after photographs of him and julie came out. Questions about it. He has dealt with a fair amount of it already. The most damaging thing him out of the book is that she claims he does not like were people. He has had chances to address that and he said it is not true. The questions will continue. I dont think it will dominate the entire press conference. There are other things going on. There are economic problems in france. There will be plenty more way to the issues. He will not be able to escape his female troubles, for sure. Greg, lets see what the for later on this weekend this afternoon. Thank you. To the scottish. They had to the polls and will decide whether to become an independent country or stick with the union. David cameron made a final plea for a no vote. His opposition leader, ed miller band, is said to do edit milliband, is ed set to do the same. Seems impassioned and heartfelt. A absolutely. If you think Francois Hollande is under pressure, David Cameron is under just as much pressure, but from a different perspective. Speech. An impassioned there was a heartfelt plea to scottish voters to stay with the union and he did warn them, he that it would be a painful divorce. At one point he gave a note to the fact that the conservatives are not popular in scotland. Do not like the government, it will not be here forever. If you do not like me, i am not going to be here forever. Independence would be forever. There is no going back. Latest on the campaign trail . I have heard a great deal talking about a bitter campaign. What is it like on the ground . Engaged. Seem it is the main focus on conversation. I was on the meadows in edinburgh. There were groups of people on , in a huddled, discussing good tempered manner, yes or no. People andged the whether there is a Quiet Revolution building behind the facade of the in edinburgh, it is impossible to see. The big Population Center over in the west, that is where the yes campaign is focusing. It looks like that is where the campaign could be won or lost. How the last 48 hours go. Great to have you with us. Also coming up a little bit later, we will be speaking to pimcos mike amy on the impact of a yes vote. Lets bring you a little bit of a break in economic data. Is a german Investor Confidence number. It drops for the ninth month in a row. Actionsahead of the ecb with the targeted lending program. A little bit of disappointment in terms of the numbers. Lets switch gears and focus on fashion. Burberry showcased the latest fashion looks. Whether theasked main concern is taking risks on the runway or the bottom line. They are indistinguishable. The important thing is we keep forward. We have innervation of the brand and we create something we believe in. Gethat our customers excited and are inspired. Is the pressure to take risk growing . It is the same. The runway is something where you have 12 minutes to inspire people. Sometimes that means you might do something unexpected. Other times, it means you want to do something more familiar. It is about feeling and emotion. That has to turn into something tangible. Technology a big part of what we are doing. This is it turning into an arms race . It is indistinguishable today. A company cannot live in a little silo world. Technology is important, but as is music, craftsmanship. Sure you playing and experiment and you build longlasting partnerships. Do with sometimes Technology Companies or musicians. Caroline joins me to tariq they were together. They transformed this technology and fashion. They are continuing to partner up with some of the biggest players in silicon valley. They keep saying we want to experiment. You were in the crowd, you could get onto twitter. Not theuy clothing quite yet, but their are a lot of pictures in the press. Accessibility is the right word to use. T is about getting the young you can lock them into the cult berry by getting them into the lipstick in the cheaper makeup products. Others are doing similarly. Instagram, they are saying this is the way it is changing. People want to buy the low. I think this is the spirit going on in london. It has put london on the map. We caught up with anna wintour. She has a bit of a soft spot for her hometown. Creativity and fun. You never know what youre going to see. It is great to be here. Will pry those sunglasses off of her. This is a great example we about andtalked they talked about expanding their warehouse. It is a representation of risk and the technology cost. This is why we have so many fashion stars. You do not need to rent a shop on the high street. Has expanded into so many markets, it has to plow market money into the market. Also, into infrastructure, getting the clothing out quickly and fast. Also having to do free delivery and returns, that cost money as well. Look at their sales. We saw growth in the united kingdom. Maybe the Scottish Referendum will help them a little bit. Thate a terrible helps. They can manage to get that back. I think that shaw tells it all. 64 . More than 3 billion pounds. Why . People got over excited about how quickly they can leverage themselves without having to sacrifice. I like the skins and the trenches. It was floral. I thought it was a bit lively. We are going to leave it there. We will find out what the Financial Impact of an independent scotland will have on the u. K. Economy. Mike amey joins us next. Welcome back. Lets have a look at the currency markets. We are down a third of 1 . Inflation at a fiveyear low. Factsrket is leaving me aside. They are focused on scotland. Joining me now is mike amey. They to have you with me. Inflation is at a fiveyear low. If data is not really what is driving the market. The truth of the matter is the referendum is driving u. K. Rates and the fmc. There other things Inflation Numbers radically different. It was pretty much in line. To take using through the next three days. We get into scotland in a moment. With numbers like that, the nontarget levels for mark kearney and the guys at the bank of england, it gives them latitude. Wages and theres not much a sign of that. It is one of latitude at the bank of england. The inflation rate is below target. It looks like it will stay below target. It gives would go room. We have to caution the amount of wiggle room and gives them. One has to recognize if you spend several years above the target and above the 3 , getting a few Inflation Numbers below the target but still within the band is still good news and gives you wiggle room. Not the all clear to leave race on hold. You are the big boys of the market. Where you go, the rest of us fear to be left behind. How much risk would you recommend the normal people to take going into thursday night, friday morning . What is the position . Not trimmed back. We look at u. K. Rates and we think they are rich. In reality, the level of the markets, if you say 10 year, you can argue both ways. If you were to get a yes, which an expectation, it would make it harder for the bank of england to hike rates thereafter. If you get a yes, the front end would rally. The backend would put a bit of a term premium on there. I suspect we will see a weaker market on friday morning. Event of a yes, it is very hard to call on these polls. Ai find interesting majority of the people i have interviewed are talking about the sterling. Of the union and it is 1. 50, no great shape. Change inume no great the view of sterling . We go through this hubris. You cannot say that for certainty. Flight, but ak of lot of the issues about where the sterling trades in the event speakings broadly where sterling was during mid2012 when the eurozone was under pressure, that is why a lot of people focus on that. Of course, one cannot say with certainty. The reason most people would not argue for a flight out of the u. K. , we should not use lose sight of the fact that scotland is important politically. The bulk of gdp comes outside of scotland. It is a big political deal. This comes down to how you agree on sterling. What is your central view on what we might get currencywise if we wake up on friday morning. It is a Currency Union . Other people have made this point. It is not something which is a recipe for longterm success. That is what we should remember. , the truth yes vote of the matter is scotland would have to continue to use the sterling. The carving up of the dead is interesting. What the base expectation would be is is if scotland takes its share of the dead and comes into a repayment arrangement with the. K. Government the u. K. Government has made it clear. It is written in the documents. We would still have one it will be a lively morning. Mike amey, always great to speak to you guys at pimco. We are going to take a short break. We will be back in two minutes and talk energy. Is in the next half an hour on the pulse. Do join me. Time for a look at todays hotshots. They played host to mountain baking at a competition. Competed. Have theke borders challenge of the icy cold conditions when they went headtohead in the harbor reeked competition. They jumped, flipped around, and had some pretty spectacular wipeouts. Skill does not get much better than this. Some skillful moves demonstrating the art of the trick shots. Up next, what about netflix . Welcome back to the pulse. I am manus cranny. Here are the top headlines today. Prorussian separatists are trading accusations over the biggest outbreaks of hostilities since the truce was signed. Airportman said donetsk was shelve all day yesterday while the army obeyed the ceasefire. Separatist authorities dispute that claim. Nato countries have begun military exercises in ukraine. Francois hollandes Government Faces a vote of confidence. A failure would plunge them into elections. The Approval Rating is hovering at around 13 , which is the lowest since the current constitution was put in place. Hisu. K. Prime minister made final plea to scottish voters, urging them not to leave the u. K. Change as ato voters opt to vote no. All of the arguments can be reduced to a single fact. We are better together. As you reach your final please dont let anyone tell you you cannot be a proud scot and a proud brit. Scotlands first minister scaremongering. Lets take a quizzical look at the markets. Lets take a quick look at the markets. Session lows. Losses across the eurozone. Down by a third in frankfurt. Confidence drops for a ninth straight month. Given what is happening in russia, no surprise. When you put that into context of the ecb says m ellis the overtimulus policy come here in the missionary some of the losses in the market. Do not telld you the market when you release numbers. They see pretax profits for the tor to be at a similar level 20, 2014. No growth is what happens to the stock. 13 euros a share is the offer of jazztel. 12. 76 euros as we speak. Were talking about sterling. One pound buys you one dollar 61 1. 61. The potential for a yes vote in the Scottish Referendum. Within numbers, a dropoff in food prices at 1. 1 . You strip out food and energy, you have inflation. A healthy 1. 9 . Outside of this, inflation, forget about it. Get a yes,ys if we this is going to have another 5 to 7 downside. Thank you for that. In 25 minutes, it is surveillance with tom keene. I understand you have a bit of a document. We will look at the beer transactions in america. As you know, you are the only one on the planet who has tasted all of the bears involved in the beer wars. Campbell,lk to matt who tried all of the beers last night. It is a big deal in america. What is interesting is the profitability of these major beer companies. To givefu has a chart scope and scale to the american beer that you did test so much. We will speak with ken burns. He will join us later. This is on his new widely roosevelts, it is about theodore and franklin and eleanor roosevelt. He is changing television and video in america, really looking forward to talking with him about this project. The big news is the decline of hedge funds. We will look at the uproar as they exit the hedge fund u. S. Based. Withdont have a problem american light beer. I have a problem with the ability of the drinking competition. You might find that the irish tom americans. Ump theirish americans. Br. You need to try p i am going online and i am going to order a few tins. The little short bottles. Its ok in a can, but you need a pbr in a shorthand, cold. Faces a few hurdles and competition from local media companies. , our american in berlin has been covering netflix. It will make you feel a home. Manus, the goal here is to work in a potato cellar for a few weeks and get to know germany, not plot myself in front of netflix. Are marching through europe. They are in france, had a big you look atight, the number of people, potential customers, 20 million people. It is shy when you look at the china numbers. That is the granddaddy of them all. The company is willing to spend money, to make money. They have a longterm view on international expansion. It will be challenging to be profitable. Content. Re in the longterm, if we go five and 10 years, we should be profitable. Create content that people like, get them in, get them to subscribe. You look at customers, 50 million in the u. S. They will get maxed out at 60 million to 90 million. They think is going. O attract international we are licensing local series. Commissioning a it is a family struggle set in a political context. We have our great originals here in france. Goal for netflix, 80 of their revenues they want them to be outside the u. S. They had 85 growth in the last year. Their revenue is in europe. Clearly opportunity here. I am curious. What is that behind you the trojan horse . Of theve just been aware trojan horse. I will find out. Maybe it is a metaphor of netflix into europe. I think it has to do with the u. S. Free trade agreement. Great deal of opposition to data and free trade agreements. Howe going to have to show we are. With that, back to you. I do not think i can match that, so i will leave that there. Time to talk telecoms. A bid for made jazztel. Out of the broadband subscribers, lets bring in matt campbell. What are they after . Best deals were to be done outside. There are bright spots. On spain. Bet the spanish economy, against the odds is rebounding impressively. It sounds almost crazy to say so, but it is almost the case. Theyre trying to increase their bed. They are joining the trend of mobile convergence. Tell jazztel is a fixed operation. This gives them the capacity and scale they need to compete. The wayplay seems to be things are going. We are insulated in the u. K. , where it is uncommon to get mobile and Home Broadband from the same place where it in france, germany, spain, that is the way things are going. The top threel, mobile players in spain will have a fixed line offer. It talks about a capital issue. How is ago . They are down slightly, little over 1 . That is not a dramatic decline for a company that is doing a significant amount of shares. It seems they are willing to support this type of m a. Theyre going to get away with this, which is a good thing for the company to be able to say. We have seen the race, what is next . Are we building up to a quarter of dealmaking . Telecom deals never fully stop. There is always something going on, whether it is in europe or elsewhere. The trend, you have to assume it will be consolidation. If there are two or 300 distinct , there are for perhaps three. Looking at our m a function, deals done here in western europe. 83 billion in telecoms. It is great to have you with us this morning. Up, my next guest says a voting yes could place scotlands financial fate in the hands of the oil cartel. He will explain. Lets get back to the big focus. Less than 40 hours to go until scottish voters head to the polls. Will they decide to become an independent country or stick with the union . Future of an independent scotland is linked to oil. An oil analyst. It is great to have you with us this morning. There has been a great deal of debate about what it means. Now we are talking about the and with saying yes to independents. How much risk is associated with the decision . Of different types of risks are associated. If a yes vote goes ahead, we are looking at risk being added in the region which were known to be quite stable. It could be a lengthy process to have a new set of laws and regulations come back into scotland. ,il companies do not like that especially where Oil Production has been declining. They would rather have a stable government. This was a huge rock a couple of years ago. Some of the tax incentives were taken away. Said to count on those to get oil expenditure capital back in. It is a hard cliff to get oil out of the ground from. And one has to remember, back has only had two peaks. One in the 1960s and one in 1988. We are in the declining curve. The report says the existing reserves are in the region of 12 to 24. It is declining. The decline rate could be arrested if there is decent investment being made. Only come ifill there are incentives for oil companies. How are they going to decide who owns what in the north sea . In terms of scotland and u. K. , they are probably going to go by the maritime boundaries. A line along the border which basically means these are boundaries. Time if they follow those boundaries, it depends on how they will deal with that. Underneathook at your chair if i slice a parallel line like that that is the horizontal line. 85 to 90 is likely to go to scotland. What is it going to take if we wake up on friday morning and they vote yes, how much of this plays into the debate . More importantly, the pricing debate. Trademark. What is the risk to brent as a pricing mechanism . It is huge. Not in the near term but as we go ahead and a little bit longer timeline over here. Brent is based on a limited thatt of physical crude has been declining. Suddenly have independence and the investments are not incentivized, that could have a further increase in the decline rate, making it more volatile. Need for including increases the need going forward. How much of that do we depend muchwhat is above how fuels our energy needs down in the aikido . Demand is coming from oil and gas. A most 70 of our oil and gas consumption is met by the oil in the production continental shelf. It does come from there. Look at government revenues, only 1 come from oil and gas. Donts hope the scots shut off the lights. Abhishek deshpande, great to have you with me. Francois hollandes week from hell. The french government fights for its survival. You are very welcome back to the pulse. Sterling, dollar inflation in this country is below form. It has been below form for seven straight months. Core numbers creeping higher. Below target inflation for eight months in a row. Dollar sterling trading at 1. 6 185. Friday morning, all about the scottish vote. Lets turn our attention to what were watching the rest of the day. Greg is in paris. The french government will be facing a confidence vote this afternoon. They will almost certainly get it. Government wins a confidence vote, it comes out stronger. In this case, it could come out weaker. Fair number the socialists only have about half of parliament because they have law left the government. Some greens will vote for the government which will give them a little bit of an insurance. There is a group of rebel socialists who will not vote for the government because they are angry with the austerity driven turn of the government. They do not want to bring the government down, so they will abstain. Be a huge victory for the government. They will scrape through and get the confidence. It will be one more thing where people are looking at how long the government will last. It is already so low in the polls. One little drip against the Francois Hollande government. Lets see how the afternoon shapes up. That is it from the pulse. Tom keene and his team are up next. I will see you on friday morning. The next out of studio couple of days. Very exciting. Join me on twitter. Runup to the scottish vote that is all that counts. This is bloomberg surveillance. The president declares war on ebola. Near 2500 dead in africa. Confidence returns to finance. Where is the Retail Investor . Making beer is like printing money. Is a craftribbon beer. This is bloomberg surveillance, live from new york. Tuesday, september 16. I am tom keene. Joining me, scarlet fu and adam johnson. Adam johnson is the only one who has tried pbr. I cannot remember the movie, pbr, they would shout it out. I wish i could remember manus cranny has not had a pbr. This is a breaksclusive. We talk beer. Some signs of global slowly overnight. No pbr. Foreign direct investment in china slows to a fouryear low. German investor offense at a ninemonth low. U. K. Inflation falls to 1. 5