Transcripts For BLOOMBERG The Pulse 20141002

It is a big day in europe. The ecb is in naples, policymakers meeting. This is one of the two meetings every year where they go somewhere else. Mario draghi has a lot to do with today. The abs program is front and center. How we get the Balance Sheet how will he get the Balance Sheet up to thre 3 trillion question mark . It is going to be about what is eligible to buy. The conversation around buying greek assets as well. The decision last month was not unanimous. A particular central bank was saying no, we dont want you to do this. Theres a lot of pressure on him right now. The data is getting worse over the last month. Plenty of questions today. Will we get the answers . The boss of one of europes biggest carmakers. He is standing by at the paris auto show with hans nichols. Good morning to you. Ceo ofjoined by the renault nissan. We will hear your and we will see your new minivan. It is an important vehicle for us. 30 years ago, we came with the concept of the minivan. It was copied all over the globe. We are coming with a new version, much more modern. We started with what was the need 30 years ago for a minivan. Version which new looks more like a crossover. It is a crossover and a welcome back. Minivan. You are watching the pulse. Me, can i boring as london. Ere in go out to buy it question mark by it . Im guy johnson. These are the top headlines. Hong kongs chief executive faces the deadline from student lets talk about market leaders. He must resign or protests share. This segment is important and throughout escalate. People have00,000 europe. I would say this would be occupied the main roads in hong kong. Riting off outstanding debt for reasonable to think that renault should have its normal market share in europe. 300,000 customers. Crunch that out for me in companies of rules and will numbers. It is too early to talk about accept your loan applications. It. Lets wait until we start the sales. It is being written off. We fill very good about the product. It is very well designed and is being written off. Full of technology. Am i wrong to call it a president mario draghi is minivan . Expected to underline the ecbs when you look at it, you will stimulus. Say this is a crossover. When you sit inside, you will investors will be looking at the Asset Backed Securities row say it is a minivan. Graham program. It is an innovation, a concept. Is going onut what innovation is so important, this morning. Jonathan ferro. About 0. 3 . By especially in europe. Do you see the overall side of bigger growing that much in europe . It would be two straight weeks of losses. The bond market. Touch higher. It is growing. For the first time, we have below 2. 1 . Growth in europe. After six years of decline. Before the20 below record low borrowing costs. Crisis. The u. S. Is already above. Eurodollar, 1. 26. You have seen the move lower that is what makes us since june. Optimistic. 8 of the highs we hit back in we will have a slow growth for may. Many years to come. It will take a long time. We are looking for three words. Be . Big can the Program Three or 4 growth this year. Next year . Year. Ut 3 of growth next how much risk will the transfer to their own Balance Sheet . It will depend on what the and opposition, how much policies will be a limited in opposition is there going to be europe. To really give this abs program be implemented in europe. Some meat . Here is a quote. Bit an incentive the euro is now at a more realistic level. For growth. I would say an average 3 growth that quote is not from the head of global banks in the city of for the foreseeable future is london. Reasonable. It is not from a fund manager. That is from mn called francois would you like to see more from mario draghi . Hollande. He has been talking about do you think he is heading in the right direction bu . This for quite some time. I expect we will hear more from him to continue to between relationship him and mario draghi is going to do what he is doing. Get quite interesting over the we think this is the right way past couple of months. To go. U. S. Futures are not looking we need to unleash the growth in particularly rosy on this order to have all of the thursday morning. Policies. Surveillance is about to take doing it in a situation where to the airwaves. Currency and cars a big focus. There is no growth is going to we will certainly touch on be terrible. Euro is good news the markets as well. In general. We will have more coverage out produce. Rint makes us of the paris auto show. European carmakers we dont export too much outside will unveil vehicles that can be custommade for me and adam johnson. Europe. In a certain way, it is good news. Porsche will discuss their new if the euro drops lower, that hybrid suv that is perfect for me to bring my kids to hockey is even harder for you . Practice. Daimler willof if it drops lower, that is better for us. Discuss a new sports car that is perfect for adam johnson. A slightly challenging the chief u. S. Situation for you. Russia, you have a large share of the market. Equity strategist of Morgan Stanley to discuss the state of u. S. Equities. Can you increase market share big caps are down from their high. . Uestion mar small caps is an area of concern. Another leg down for the equity market overall. The russian market is down 20 this year. Tom keene is in washington, it will stay down for a while where he will be speaking with Christine Lagarde, the managing until the environment gets more director of the imf, later today. Im looking forward to that stable. We are increasing market share. Conversation. The question of market share is for europeans, things may not be not the issue. Going that well in the eurozone, the ruble is weakening. But we can still do a few good we are the most localized in things and carmaking is one of them. We are looking forward to the russia. This crisis helps our market conversation. Looking forward to hearing from tom and Christine Lagarde. Position. From the other side, it it is the Paris Motor Show is really revving up now. Not good for business. A glimpse into what may be the we have 33 of the market and the market is down 20 . Car of the future. Lets take a look at some of 2016 40 still the gold by them. Tom gibson reports. Could this be the car of the the goal by 2016 . Future . Citronnch car giant a shrinking market where you wants to boost sales after a twoyear low. Even carry the are the leader is bad. Car manufacturers name, but certainly makes a statement. Trying to take on the electricvest a lot in established idea of premium. They are trying to do it in a particularly french way. You are looking at something over styled, perhaps slightly more different than we are used cars, but demand has been a little soft. It is increasing. To. Good for variety is it is increasing in the united states. It is going to increase in china. Upeurope, it it will pick business. With the development of the infrastructure. Its Sister Company peugeot is electric cars will be part of the industry for the future. The question is, at what speed in on the acts. Will it increase . They hope the results will take on their german rival. Peugeot has a big jump to be on infrastructure to done to persuade people that they are really rivals with make the consumer willing. Upmarket cars. Did you get the timing right . Whether we see Something Like that on sale, very doubtful. When you have a technology it is a Good Intention to show where peugeot is going with that allows you to answer main concerns, the missions and too regard to its brand. Wonder if concept much dependence on oil, you have to go ahead with it. You need to go out, put the cars will ever make it onto the technology in place, take your road. Far down theretty stand, and engage with a line for most car manufacturers. What tends to happen is you see different market. I think the response has been them with a slightly altered for great. More designers have been reined we are the leader in electric in and some of the more extreme ideas can reach fruition and be car production in the world. It is also very good for our seen on the road. Tom gibson, bloomberg. Ok. Brand. Engineers bringing lets go from cars to central banks. The ecb is in naples today. Together. They are cooperating a little bit more, but you still have we are waiting for the press more work to do to integrate the conference. You may get some details there two cultures. On the abs program. No doubt. Home of the ecb is these two companies are very frankfurt. Different. We want to make sure we are well enough working well enough car theme running together. Through the show because the Paris Motor Show is on. Is today a pit stop on the road to further qe . Take, basically. To extend itsecb Purchase Program in the coming months to include government bonds because president druggy has basically committed to Balance Sheet expansion up to one trillion. He has not really set a timeframe yet. We believe it is going to be difficult for the ecb to achieve that with the purchases only they are doing now. The currency is falling. It is going to make the inflation story little bit more positive. It may start going the opposite direction. Is that going to be enough ammunition . Definitely come of the process is still to some extent driven. Picks up quicker than we anticipated, it weakens the case somewhat. Look at the figures that were released this week, inflation dropped further. Surprisingly, the core Price Inflation week we can further. Weakend further. If the euro depreciates further and attacks the inflation theres, then it may cause ecb to make them feel like they have done enough. Of the zeroeached band when it comes to standard Monetary Policy, mario draghi has acknowledged that. Have we reached to the zero bound when it comes to nonstandard policy . He has tried to use things to stub out the expansion of the Balance Sheet to the banks. The banks are not interested in the money. If you look at what is happening in the abs market, there is not the size or scale to do significantly more. You kind of wonder whether or not and you at all the german resistance, whether or not we are actually reaching the end of the road. Is it going to be possible to get the Balance Sheet up as much as you are talking about . The barriers to that happening seem to be growing in my mind. I think it is possible. If they were to expand the program, then it could be done. The risk of such a program, that debate has largely taken place. The council has basically committed unanimously to do everything and use unconventional tools to make bringhe ecb manages to Bank Inflation to target over the mediumterm. The outlook has deteriorated and inflation keeps falling it is a risk to bring inflation back to target. Point, they have to extend the program and do more. Ofis not so much the debate whether government bonds should be added, but rather a question of timing at this stage in my view. Ok. Where do we sit with this debate alongside the debate that is happening at a fiscal level . The french and the italians believe that we need more fiscal expansion. Weir economies are the place will not see the fiscal expansion. We want to see pure economic expansion in germany and a demand driven push in germany. How did the two sides of the fence Work Together . Or do they not worked together at all, do you think . As president druggy pointed out mario draghi pointed. , the problems are very obvious and he has called for more expansionary fiscal policies and for more Structural Reforms to make sure that the economies in southern europe, france and italy, become more competitive again. In terms of the fiscal stance, the debate is about whether you should stick to nominal targets. In countries where you do not have much fiscal space, the debate is not about adding stimulus, but about making fiscal policy not more contractionary in a week economic environment. Resistance int of germany. And also the rules of the new fiscal tax. It is important to stick to the rules for credibility. Worsens,onomic outlook you will see a bit already miss here in germany to provide some true stimulus in terms of tax cuts. There is already quite a bit of push for that to give some income tax relief next year in good morning. Germany. Welcome back. Holding europe back the ecb meets in naples today. Mario draghi is expected to right now . We are not getting the stimulus drivers we need right now to underline his willingness to employ economic stimulus. Theue the ecb from we will get details today of the inflationary story right now. Armanys currentaccount is asset backed purchase schemes, huge disinflationary drag. Details about where we go from is germany the problem . Here. No, i dont know about that. Nevertheless, you kind of get the sense that he is finding the going tough right now. He probably wants to do more, i think germany needs to make sure that its economy keeps running. But the bundesbank is holding our models have shown that the him back. Spillover from fiscal expansion in germany is relatively not getting the kind of limited. Traction that he would have hoped for. I think thats right. We have a very tight Global Supply chain. The speech he made after july is important. In the end, i think we all he understands that Monetary Policy on its own is insufficient to get the eurozone depend on a healthier Global Economy back on track. Backdrop. Markets are watching quite the manufacturing momentum needs to keep flowing. Germany has always been quiet, closely. Whether he can get the balance relatively strongly oriented sheets of by one trillion euros. Economy. It is a moot point. He is running into opposition this spill effects from sprint from german policymakers worried fiscal expansion is very limited about possible degradation of from fiscal expansion is rare the ecb Balance Sheet. Very limited. That will be a big issue. Thank you very much for your what we are heading time. Remember to stay tuned for the towards is some type of qe light ecb at 12 45 p. M. Program rather than fullblown the action is going to be at the press conference in naples at qe. 13 30 u. K. Time. There are the sorts of barriers that he is running into. There is a big question mark we will be taking that live and in full. We will head back to the paris whether the whole thing will work anyway. Auto show when we come back. With banks deleveraging, debt overhang throughout europe, banks dont want to lend and borrow his borrowers dont want to borrow. The other issue is we should never forget what is happening to fiscal policy. Monetary and fiscal policies are pulling in opposite direction. None of that sounds good. The only good news is the europa is falling the euro is falling. That is what he would like. Knows all of the asset traders in the market. The flip side of the giro weakness is the dollar the Euro Weakness is the dollar strength. A stronger dollar might not interest to the american economy. Prime minister abe with a eager with a weaker yen. It may be disorderly and that might be a problem. The dollar yen seems to have hit a 1. 10 level. Noto you think he is talking about it. It is not on the agenda. But he would like it lower. If he can get it down to what level . Look at the eurodollar Exchange Rate. The decline is only 5 . He needs to see Something Like a 10 decline. What is important, he has a real problem. They have undershot their inflation target. Inflation expectations are going down. They really have to do something. Otherwise, theyll be faced with this problem of economic stagnation. The currency could have some effect on that as well. A weaker currency is better than a stronger currency. His worstcase scenario is what happened in japan winning and went out. Up. Hen the yen went what happens if the Balance Sheet does not go up . His worstcase scenario is that the euro might go up. German it is getting stronger and stronger. Welcome back. This is another issue that lets head back to euros biggest car show. Hans nichols is there with another ceo. I hesitate to say the most deserves a lot more attention. You need an expansionary fiscal important ceo of the day, but one of the more interesting ones. I am joined by peugeots carlos policy. Tavares. Its surging it we have done a lot of ceos. Is there light at the end of the attracts capital inflows. Tunnel . Yes. We have seen portfolio flows from equity funds, there is we are starting to see the light still this structural influx. At the end of the tunnel. In our turnaround they are battling against it all the time. Plans and we are back in the race plans. Stopped the turn of the core economies, germany and the company and we are back to a profitable situation. Of course, the work is not france, a footstep away from finished. But we are on our way. Recession. From today come a nobody technology that germany we want to express confidence. Is running out of steam. Confidence in the future. This is a real issue. We are pretty sure that we are going to drive this thing around. Pointe we reached the positive cash flows this year or are you already there . For the First Six Months of the year, the cash flow was 1. 5 where we are getting to the zero bound on eurozone monetary billion euros positive. Policy . The profitable because of the fact that mario draghi cant do more. Area for the operating cost of the company. We are back in black, which is very important. Control of which of 2014the first half assets he could buy to the against the first half of 2013 and that is the big rating agencies. Encouragement for our people. Have control of what management, it shows that we are moving in the right direction. Of persistent implementation he wants to be able to buy. Is he unable to go further than the back in the race plan is the living result delivering he wants to . Results. You have that similar that is a good way of describing it. Confidence when you look at he is running out of ammunition. Russia or even latin america . You are not quite there on the german opposition is going to be profit. An issue. What is your longterm outlook . We have many things to do to we havecomments improve our Business Model in russia and in latin america had, and to that effect. We have had comments to that because we are still in the red in those areas. What we can see also was that effect. Is it going to stimulate . All of the actions we have taken within the framework, we are now the banks are deleveraging. Also getting results on those regions. It is not yet in the black, but the amount of red is getting there is still an essential smaller and smaller. Problem. And you still have this debt the actions are now being productive. Overhang. These are all big issues. 2016, 2017, will you be in fiscal policy, austerity is the black in russia . Committed to 2017 at pulling against Monetary Policy. The latest in russia and in this is a real issue. Latin america. We are doing our best to do that flaws. Exposes the design sooner if we can. Is that a promise that you will deliver . No. I think he understands that and it is the expression of our competitive spirit. Once policymakers to do a little what is the forecast for bit more to encourage growth. Stay with us. Europe . How do you see the market evolving . We can see the trend is around 2 or 3 improvement. Well bring you the ecb Rate Decision at 12 45 p. M. U. K. We like to see growth. Time. It does not have to be very big growth. We would like to steve see up on that coming steady growth, something that is bloomberg television. We will head back to euros biggest europes biggest car stable to create tailwind for the company. We still have significant work show. That is coming up later on in to be done to implement our plans. Having this small tailwind will the program. Help. It is the first interview he has done today. We are the second most Competitive Group in europe. We are now growing fast and strong in china. All of that coming up. This year, we are going to deliver north of 700,000 sales compared to 550,000 must year. We expect to continue to the rede this and fix ink issues we have in russia and latin america. Youre will you return to precrisis levels in europe . We are still far as a market. To be at precrisis levels. We expect in three or four years that that may happen. What is most important for us is that we have steady growth. Us somerowth that gives stability to implement our turnaround actions. R dhen you look at rmb and next month we will have fiat and chrysler joined together, is that a threat . Chrysler and fiat coming together . We are used to having tons of competitors on a worldwide basis. We have 97 of competitors. That one is more dangerous or competitive than the other. We are facing tons of competitors. That is not creating any fear in our mind. Plan, therernaround is a huge move toward efficiency improvement. Beyond the numbers and the dollars that we are spending in any activity, what matters most in the industry is the with which we are using the euros and the dollars and that is where we have to focus. Do you expect your research and Development Team to be more efficient with less resources . They are going to be more efficient because we are now implementing what we call a core model strategy. The product opportunities as global opportunities, which means making a car for several markets and keepingtime, some latitude of tuning to meet specific market expectations. By bringing together global models, we improved dramatically the efficiency of r d and by doing this with limited amounts of financial resources, we will have a much better output. Thank you very much for your time. I heard a whole lot of optimism about the European Market and their chances for getting to be profitable from our guest year. With that, i will send it back to you. Thank you very much indeed. Our international correspondent, hans nichols. We will take a break and see you in a couple of minutes. A quick check on the markets. 90 minutes into trading. Equity markets still lower. The dax stays lower. Down aroundndex 8 . The nikkei down by 2. 6 . Some worries about growth. On another day would stocks up, ak numbers. Ave we the s p 500, 3 off record highs. To 90 a barrel. We know the supply story. Demand growth, lets think about what happens there. Slightlydollar is higher. Good morning. Welcome back. You are watching the pulse. We are watching the ecb for the rest of the day. Not much is going to happen with rates. Jonathan ferro, the press conference. Yes, it is big. You cannot take rates any lower. You are to expand your Balance Sheets by one trillion euros. How do you do it . Everybody is looking to this abs program. How big is it going to be . What is a going to buy . How much opposition is the going to be . The market is tiny. It is unlikely to do the job. Possibly. We have not got enough time to frame the debate. The hurdles are right there. The hurdles are very high when it comes to the germans who are pushing an ever higher at the moment to making Mario Draghis life it little more difficult. We will run you through the News Conference. Today. Renzi is in london mario draghi is in naples. Never the two shall meet. That is it for the pulse. We will be back with the News Conference a little later. In the meantime, surveillance is up from new york. We will see you later. Good morning. You are watching the pulse. Ecb policymakers are meeting in naples. Mario draghi is expected to toerline the willingness andrew, we just heard the figures from last night. Some reports suggesting were starting to see some of the fting off. Dri i was out there last night and there was a huge amount of people. Almostve been getting similar numbers. T is very hard to gauge the police are not putting out any estimates. The numbers have been pinning out during the day when it is sending out during the day when it is extremely hot. It is following the same pattern. 200,000 . Who knows . There could have been, there was a tremendous amount of people in the street. There are some images being shot with drones. Otherwise, it is hard, given how many skyscrapers there are, to get a grip on how many people there are. Stocks around the world the you are showing some images now. Only the aerial shots can give you the sweep. Klein of the European Central bank will it be whatever it that is a daytime shot. Takes . Last night, that area was much testers in hong kong warm warn of the chief executive more densely populated. There does not step down, their prodemocracy demonstrations will get bigger. Been setseems to have toentists in texas try determine if the ebola patient infected anyone else as the of something of a deadline Tourism Industry scrambles. About a negotiated exit. Good morning, this is bloomberg do you think that will come to surveillance. Anything . It will certainly not come to its thursday, october 2. His resignation. He has not spoken very publicly. Washington ahead the people around him are saying of the imf meetings later this that there is no way he will week. He will be speaking with step down. Christine lagarde at noon. We will bring you that interview when it occurs. 12 00 p. M. , tom keene with Christine Lagarde print i think it will inevitably produce we need to start off with that data check because it was quite another conflict it day yesterday. It was nasty day and confrontation with police. The tension is rising a little continues this morning. Bit. We were down 238 points they have hinted that tomorrow they will do something. Yesterday on the dow. How much theook at the students dont necessarily speak with one voice. S p 500 has fallen from this is kind of an ad hoc movement. Bigger than they expected. Is that the line in the sand . If we start getting the occupation of government buildings. If that were we start to get a trigger for more Police Action . Any sense of the students debating debating the police by making these Threats Police bye making threats . I think the students know time is not on their side. That is an enormous turnout for a city of 7 million people. Is an enormous showing. How long they can sustain not, we had a holiday yesterday and today. People have to go back to work. Students want to get back to their classes as well. They know something has to give. By telling police that we are coming on your turf, their warning the police. Said they will not permit that to happen. They are almost nowhere to be seen. It is pretty remarkable. If the students come, they will be there guarding the government buildings. Much. At, to a very thank you very much. Joining us from hong kong. Meantime, let me take you back to the u. K. U. K. Ut. You some of the headlines. They are not calling for changes. Housing market remains a source of risk to stability. In terms of geopolitical risks appear more marked since june. But go back to neil mccann and lets go back to neil mccann and. On the fiscal side of the hours havehe last 48 been quite remarkable. We have seen the Prime Minister making all kinds of promises to the electorate. He will somehow do with the budget deficit and cut taxes and drive more money into peoples pockets. Isnt that terrible . There is an election next year. That explains everything. Most people would prefer lower taxes than higher taxes. Ofhave had our form quantitative easing. We have had our Exchange Rate depreciation. Has been a little bit easier. Putting all of those things together, we have the economy going. That could continue into next year. The economic backdrop is quite favorable. The bank of england needs to keep an eye on a couple of things. The Housing Market, they have a little bit of breathing space. Be as we got will through the end of the year and into spring. It is quite likely that we will start to see the Housing Market go up again. That will start to put pressure on the bank of england to raise interest rates. For the time being, the bank of changes, that story we are talking about normalization of policy. Interest rates going up for the first time. Will it be a problem that we 2015 is looking like a very difficult year for the eurozone. The eurozone has been a drag on the u. K. Economy. Despite the depreciation in the Exchange Rate, the fact that the demand and our main trading markets were flat as a pancake did not do anything to help our exports. Be aayoff is that could potential problem. Potential problem for inflation over the next 1218 months. The u. K. Economy has to recalibrate. One of the big debates going on is the fact that we are too dependent on eurozone exports and we export more to ireland than we do to china. Is still a big market, as is asia, as are the emerging markets, half the Global Economy. That is where the growth is. The eurozone is hardly a growth market. It has real economic problems. If we look at the big picture, the u. K. Has to reorientate itself in the medium and longer term. Do a lot more to promote exports. It is already happening. That is the way forward, i think. We have to go where the growth is. The eurozone, unless things , but they cannot go along the road there on. It is the road to nowhere. I want to bring up some pictures. Job has been made harder by the fact that the Current French finance minister has just made at howr if you look the u. K. Model versus the french thel works right now, french are blaming others. Is there some justification for that . The u. K. Has reason to blame the eurozone. How much of what we are seeing at the moment in france is structural . How much of it is their biggest trading partner not having enough demand being generated . Put the story in context. Deflationary, created mass unemployment. They are part of this project. Is the project to blame . Hollande Approval Ratings have plundered for all kinds of reasons. The policy settings in france are not conducive to economic growth, simple as that. We are now in a situation, and germany, theto German Economy is stagnating. The core european economies france, germany, italy is in a triple dip recession. It is not the periphery anymore. France has to change course. I can understand why the french are saying no more austerity. It is simple economics. If you dont get economic growth, your budget deficit goes up. This is what is happening throughout the eurozone. This balanced budget m has been ast so disaster for the eurozone. They need to break the logjam and get out of this awful situation. The ecb is in their backyard right now. It on a ferry to capri. Thank you very much. Back top, we will head europes biggest car show. We will hear from the ceos afford and volkswagen right after the break ceos of ford and volkswagen right after the break. Good morning. The worlds top Auto Executives are in paris. Hans nichols is there. You have been speaking to some of the biggest ceos on the road. Quietly andhem are not so quietly cheering with mario draghi. It is the corollary to what is happening. A great deal of concern about the european recovery. For individual companies, that means they need to be more efficient and get more market share. When we caught up with the vw ceo, it means improving certain auto segments. We are already world market leaders when it comes to passenger cars. We are working to develop ourselves further in these areas. Ceove yet to speak to a who thinks europe is going to absolutely take off. Everyone is in the 34 growth range. That is a long way off from precrisis levels. Last time these guys got together was in geneva. How nervous are they now . Thing most interesting from russia, rollsroyce. A hedge against the weakening ruble. From the ford ceo, this idea they need to be involved for the long term. Our view is that somewhere down the road, it will be the largest market in europe. We have started two years ago with only producing two products. We want to serve the russian customer. Maybe if the euro weakens that much further, i will have to start investing in rollsroyce is as an asset class. 0 pounds. 350,00 i am sure they are all in your price range. We are talking to the seo of peugeot later of on. We will be pressing him on the same things. What is their strategy for growth and for market share and how Many Political headwinds are there . What mario draghi is doing, how much is it helping . Hans nichols on the road at the Paris Motor Show. Rocket Internet Sales to lift off. We will see why shares are sliding on day one of trading. Good morning, everybody. Welcome back. A new report has ranked countries with a sustainable diets. India came out on top. The high number of vegetarians. U. K. First zero restaurant has opened. It recycles all food waste. This is also sourced locally. Sewage fories used 2. 5 million people. Rallying today. Dubais biggest Public Offering made its debut on a stock offerings. It is not quite alibaba, but not bad. Not too shabby. They searched about 20 at the open. Now they are up 12 . Sale ofy announced the 1. 6 billion dollars worth of 25res, they were more than times oversubscribed. They could have sold 43 billion worth of shares have they sold shares to everyone who wanted them. Lets not forget the Dubai Stock Exchange is the world secondbest. The ipo will not harm the opposition. Thank you very much. Ipo to another. Little lift off when it comes to rocket. Shares notipo, exactly taking off. Valuations maybe a little poppy. They did double the size of the amount they went for in the market. They are about 1. 6 billion euros. They went for a price of 42. 5 euros. It is trading down by about 5. 5 . Many people feeling they have actually been a little bit greedy. They see the amount of demand and it is priced at the top and of the range. What investors are looking at is the opportunity in his company. Is three brothers. We are not the geniuses behind the concepts of the companies we build. Our genius is in the execution. They want to become the worlds internet powerhouse. They first started with ebay. They brought it over to germany. They suddenly have a winning formula. Theyre looking to push out to the emerging markets. We know the Business Model works. The risk is the new geography. They are an accelerator for more than 100 companies now. Look at the amount they have raised. Hopefully, this will tempt companies to think, time to cash in. Despite the little drop, quite a big picture story out of this. It is theewers, second hour of the pulse. The ecb is on the road in naples. We will talk about that story will make him back. When we come back. Stocks slide. Mario draghi hospitality and job. Job. Rio draghis italian start your engines. Good morning to our viewers in europe. To those just waking up in the united states. Im guy johnson. This is the the pulse. The big story is the ecb. Policymakers are in naples. Are away from frankfurt, the headquarters of the ecb investors will be listening closely to a mario draghi has to say. Good to see you come a guy. Good to see you, guy. Be . Big can this program what is going to define how big the assets they can buy. That might move the dial slightly in terms of the assets they can buy. If you look at the distributed market, one abs billion euros in 2013 issuance. The idea of this plan is that he is going to take bundled loans off the bank Balance Sheets and afford them the ability to put more money out into a sector that we have about its desire or willingness to take money on anyway. Onto theerring risk ecb Balance Sheet. There was going to be a lot of opposition down in naples today to what they try to introduce. It is a very difficult job mario draghi is trying to deal with right now. We have seen a reduction in the euro. Is the most Significant Development we have seen over the last six months. There is possibility we folly for an from here despite germanys currentaccount fall even further from here despite germanys current account. It might be music to his ears. When you strip out the more volatile prices, you look at. 07 . Pi, it is a drop of it is not clear how much the euro is going to help over the next 12 months. There is a lot of work to do. The ecb has always been on this fine line. What are the french doing . You could not have done that more perfectly if you tried. A little flash when across the screen from president hollande. The euro is that more realistic levels. This is disappointing to a lot of people because this is all they have heard from people for years. We need a weaker euro. Wellnigh you have a weaker euro, what are you doing with your budget . They are kicking it to 2017. We will take Mario Draghis News Conference from naples live and in full. Looking forward to that. Lets go to hong kong. The citys chief executive faces a deadline from protesters. Lets talk to andrew davis who joins us from hong kong. Give us a sense of developments. What was it like last night . How many people were there . What are the stories this morning . Will we see escalation . Last night it continue to be very festive. Students are saying 200,000. Who knows. The crowds are massive. It could easily be more than 100,000. It is hard to gauge the size of this. It is in three different parts of the city. Each of those areas have several tens of thousand people there at night. We are starting to see people returning now. There is a growing sense of tension. Thestudents have given chief executive of the city and ultimatum to resign by today or they are going to escalate protests. What that means is a little unclear. They have talked about invading government buildings. Any kind of escalation, particularly trespassing and government buildings, would provoke some response from police. They have been virtually invisible since firing that tear gas. It is really remarkable. It is remarkable to be in a crowd that large and not see Public Safety people. They may be there in plain clothes. They have not shown any visible presence at all. It is pretty incredible. It is interesting that we have got to this point now. You have to think about the stalemate we have got. Whether or not it is sustainable or whether or not the student leaders have to force the story now, whether they have to make moves them have this go when way or the other. Do you think that is the thinking . Very well be. It is hard to say. They dont exactly speak with one voice. I dont think they have a plan for anything like this when they initiated it. I think that the police use of tear gas turned this into something much bigger than it would have been otherwise. Kindally provoked a very of visceral reaction from a lot of people here who were really shocked. This is not a violent city. This is not a city where the police are often out in force brandishing weapons. This is not that kind of place. It is not ferguson. Not that way at all. This is probably one of the most safest cities in the world. Not a lot of tension generally with the policece in general. Firing the tear gas really struck a nerve and brought people into the streets. The students also know that time is not on their side. They have been out there a week. The government says, we are not going to force you out. The students know the numbers are going to start dwindling once people go back to work after the holiday. They have given this ultimatum. No one really thinks the guy is going to resign. He has the full backing of beijing. There is little chance that he will be forced out unless beijing decides to hang them hang him out to dry. Tomorrow, it seems that the students will do something to escalated and then it will bring some sort of confrontation with the Security Forces and police. Andrew davis joining us from hong kong. Lets go to brussels. A hearing is currently underway at the European Union pollock parliament. How to do with excessive debts and deficit levels. Can be no Growth Without debt reduction. His successor is making life a little bit difficult for him. Lets stay with the french theme. Lets go to paris. The motor show is underway in the french capital. Hans nichols is there. You have been talking to some of the biggest ceos on the road. Tell us what they have been doing. It is a french question. It is a question over whether malays will be hanging over the entire euro auto industry. Ales are up it is a question of how much longer they will continue to grow in europe. In overhang. O i put the questions to the ford ceo earlier. Throughve guidance 2015. We do expect to improve next year. Still significantly, but at a loss. That is a round of deterioration we have seen in russia, also in the market. It has been recovering. It is a little bit of weakness in the last couple of months. Finally, we have had the low interest rates. Our expectation is to get back to profit as soon as possible. That is an indication that every company here is bracing for the long haul, at least in terms of russia. They see a huge market there. Ford talked about it being bigger than the u. K. Right behind me as a concept car for toyota. We will be back with a talk Top Executive from toyota and just what im going to get you for christmas, guy. Normally it is flip flops from an ipo, but we are going to double down and get you something nice. Im now having my expectations levels raised. The rollsroyce looks pretty nice. The company cars. The boss would sign off. Why wouldnt he . To take a break to make sure we get to our great guests. Hans nichols is talking to the peugeot ceo a little later on today. Stay with us. See you in a moment. Good morning. Welcome back. You are watching the pulse. We are talking about the price of crude. Dropping on the session. Brent is probably a better global benchmark. Nymex is a key level. 89. 71 is where we are tracking at the moment. But me show you the longterm chart. This is significant for mario draghi as he thinks about inflation and the moves and eurodollar. 85 index has gone from 80 to over the past few months. It is significant. The nymex crude story is something to Pay Attention to. What is happening to the dollar is really the big story right now. Petrol, cars, oil, currency, lets bring it all together. Lets go back to the Paris Motor Show. Hans nichols, back to you. Guy, you need less oil if you are going to drive a hybrid. Talk to the to executive Vice President of toyota. Fascinatedbsolutely with this car. In enteringatement the cross of protection. You will him and we are statement. You are coming to the party a little late, however your home to be noticed. Ravtarted concept with the 4. As that car grew, we want to go back to where it was in a different way. You can see here, quite expressive. Toyota is taking a lot more risk with more exciting designs we have ever had in the past. It is a concept car now. When might we see it on the market . I cant say exactly when. One year is too soon, three years is probably too late. So start guessing. 2015. Give me an idea of your sales targets. Yes, we have been growing for the last three, four years in a row. I heard you earlier talk about the malaise. We think we can manage the business in europe. Our market share is growing a little bit. We have been growing steadily. We have been profitable for 23 years in a row now. We run a profitable business in europe. We have a very high hybrid mix here in europe. In the past, people said you needed the diesel in europe to this is seed to succeed. We are at a 20 mix now. One in three is a hybrid. We are extremely hybrid oriented. We think it is the future. Involving two different types. You and bmw cooperating on fuel cells. How is it going . Means everything. You know this from your business reporting. Cultures either work or dont work. The bmwtoyota culture is very good. I cant say a lot about that, but it should lead to good results and we are working on interesting things. When you say interesting things, does that mean a joint vehicle . Technology first. Technology first and then we are working on a sports car feasibility study. Maybe late next year we will share you news with this. The sports car is going to be ultra sexy. Fantastic design. Cars in thets lineup with good energy backing for the brand. Toyota is still number one. Volkswagen wants to supplant you in that spot. Are you confident in your global position . Are we confident . We are not taking volkswagen chasing volkswagen. Disappointing to your readers. If we grow and become number one, that is great. We want to make sure that our company is really solid and we expand in all the regions of the world, even the difficult ones like europe. I think we are proving that. What are your forecasts with russia . It is going well surprisingly. We have a highend mainstream model. ,e sell camry and above including some strong suv lines. We have gained market share in russia since the crisis. In 2015 . Isthe market itself definitely going to be down to about 2. 1 million. We are going to have to fight in a smaller pie. We will try to hold our volume to a similar level. I hope to see this in 2016. Guy, i think it is pretty clear. We are going to see this concept car on the market in 2016. Fire up the amex and get you one shipped over. I dont think you want one for me, it sounds like you are one want one. I could see you in one of those, hans nichols. We are going to take a break. We will get back there and little bit later. That was on snow goals talking to the toyota executive Vice President. We will come back in a couple of minutes. Welcome back. You are watching the pulse. Catch isrtup bio turning crime on its head with the launch of an online art fraud exhibit. Elliott gotkine has more. Im joined by the ceo and founder of bio catch. The art of fraud. These are tracking of hackers or malware. Behavior, analyze the we figure out the behind the , they are creating amazing art. The good thing about it it is endless. The malware is trying to improve all the time, so the painting is Getting Better and better. The focus for bio catch has been on banks. Tell us exactly what you do . This might be you making it disappear to see how we find it. This is like a secret question that we ask. That you areware asked it, but you give me a good answer because the we move the mouse and the cursor disappears is very unique to you. That tells us something about the profiles. Hackers catch up with a lot of the Security Companies eventually. Are we going to see malware being able to replicate the way they move . That is the biggest challenge. They will come up with something new. This will give us 510 years. Some of the biggest banks in the u. S. And europe are your biggest clients. Social networks will be an area of growth for you . Not only social networks, but online accounts. Gmail, facebook, business applications, we are dealing with applications all day. We want to become the new standard of online communication. Say, these is not to are the guys who did this. Your job is to prevent the hack or money disappearing in the first place. You have raised 12. 5 million so far. Year weieve the next are going to raise more money because if we want to be the new standard in the world, we will need to do that. I know you have offers in the u. S. Already. We are based in tel aviv. Are very much looking forward to more art exhibits coming from bio catch. We are speaking with the ceo and cofounder of bio catch. Im not sure if any of those are going to make it into the art coming up in london. But perhaps we can have a go and see if any of those appeal to any of the art critics. We know we can offer they can offer their opinions. We will try. We will give it a go. Some of them, certainly, eyecatching. Thank you very much indeed. Coming up, you are looking at one of peugeots latest concept cars. There you go. We will speak with the companys ceo. Live from the Paris Motor Show. Looking forward to that conversation. Mario draghis decide day again. He will have to Say Something about the asset bank row graham that he is putting out there. Details a little later. Stay with us