A warm welcome to the program. Are ready to deliver the stories that will drive your day. Jon ferro is looking ahead. Ryan chilcote is on the ground at the london boat show. We have another quarter of sliding sales. There is competition from Chinese Brands and, who better than manus cranny to talk about center stage in london. London . George osborne will set out his vision a more spending cuts in a speech and lower taxes. Not a cheery message for a lot people in one of the fastestgrowing economies in the western world. You have unemployment and of unemployment falling and Economic Activity rising. Truths andr of hard the government will not be losing the purse strings. Tempering andot this is about minimizing the governments role in the economy. Incentivizing and hiring more. Funded bynot be borrowing and, as we start 2014, really, this is about setting this up for next year. It is a big year because the election. Despite the improvement in the economy, the conservatives are losing some of their core support, arent they . It seems so. 30 of the voters seem to have supported them in the last election and no longer back the party. One of the big issues is austerity being unpopular. When you ask people if they feel a little bit richer, they will tell you know. There are energy costs and food costs coming down. You may say that the economy is improving to what they are facing is a costofliving crisis. What is interesting about that is the 30 of voters who know haver support them, they shifted because of immigration, the other big theme throughout this year. More highlys regarded when it comes to managing the economy. He is. Millebed miller band and and the disastrous government that went before them. He can keep blaming them for all that and that will keep them in favor, in terms of managing the economy. It is up to labor to shift this one around. The british boat building industry had hard times after the financial crisis. There is a celebration at the london boat show that began this weekend. Boat show is ushering in a new year with swagger. It is not the first boat show of the air. It is the first one since the economy tanked and people appear ready to drop some serious cash. Orders have been put in by dealers. They do best when the big boat makers do well. They are the for rorys of the dinghy world. Then, there are the big boys. They are the main attraction. There is a lot i am trying to get my head around. Britains boat industry is worth more than 4. 4 billion. Exports rose eight percent last year. That is compared with a contraction of the same magnitude the same year the year before. Now, who is that i see over the horizon . It is Ryan Chilcote at the boat show and he is joining us with more of the preparations that are being made there. Several there is hundred Million Dollars worth of boats. The most expensive yacht that you can get here is the sun seeker 40. Feet. 40 meters long, 130 well be checking at the boat and managing some of the trends. Yesterday, i was here and they were watching me like a hawk. Today, is just us and the hoovers. It is just us and the hoovers. Then. E us the lowdown, i was asking about this. It is like asking about how much you should spend on the wedding ring. The answer is, one months salary. Millionant to buy 27 yaht you have to have money you are willing to lose. In the first year, you can expect to lose 30 , unless you get the first or second. You have to maintain it, even if million,fford the 27 you have to have the Purchase Price to keep it going because you do not drive these shots. You have to have a crew. In the case of the 40 meter boat , you have to have nine or 10 crew on board. What kind of buyers do you see their . There . Usually, you get a bunch of gawkers who look aspirational he. Aspirationally. I was struck by the number of people who looked like they were appeared to buy something. You can see all the boats really well and normally, they are in the water. You have full range right here. People were really considering. Certain buyers were considering what they might buy. In terms of nationalities, there are a lot of english. There are people from the United States, mexico, the middle east. Chinesetrend is the buyers who are shopping for multiMillion Dollar ya uhts. I like the pink one. I think both for color. Color. Boats for smart phoneon for makers. Deutsche telekom is leading the way. Hans nichols reports. Snowdons bombshell, two phones. A blackberry 10 and a samsung for theere competing German Government. With news reports of the nsa listening on top of the u. S. Embassy of berlin, two companies are experiencing a surge in and a secured smartphone. It is about security and confidentiality. What were offering is attracted to them. Code towrite lines of virtualize the android system. Is inserted next to the sim card. Forthan toggle backand between the secure mode and the secure the regular one. Theres a secure compartment. Seecan switch and you will it is a normal android. Their competition is a isified blackberry that listed at 2000 euros. They claim that they are more secure. The most secure best the most important thing about the nsa spying is that this becomes important. Here is value in your voice they have the tender to sell 10,000 devices. Secret asly guarded to which device will become the chancellors phone. Hans nichols joins us from berlin. How well are these do technologies expected to work . They have the stamp of approval from the nsa in germany. They claim that they are entirely secure. Even if you hack one phone, you just get into one phone. Hacking into the whole system everyes hacking into single smart chip in these phones. We are seeing a transatlantic battle. Any company that has u. S. Components could be susceptible to the charge that their data is not consist secure. Some of the voters in the french are concerned about a backdoor or u. S. Intelligence azz to agencies to suck up data. The next phase of this goes to the private sector, when banks and bankers demand smartphones. Hans nichols in berlin. Htc revenue. Caroline hyde is following that story. Bigion week means business. Manus cranny has that story. Junior cannotey instill confidence in this company. Nine straight quarters of decline from htc. They used to be the dominant player in 2011 and they were the biggest seller, at one quarter of the entire market. They are trying to get a new marketing campaign. I think one of them was a hipster troll carwash. Loss in a fouryear earnings. Something a little more stylish. Menswear. That is going on in london. Designers are getting involved in the business. Dolce hink of anna gabbana kicked off business. What does the collection mean for british industry . We will have that in a short while. It is so unique, in terms of technology and fashion. Cranny. Verdapper manus according to research and reports, which we have exclusive and early access to. We will talk about with the transwe spent on and eye onre keeping thaan the massive store in the u. S. The sheik u. S. We will have more throughout the day. It is time for company news. They missed analyst estimates for the fourth consecutive quarter. Net income was 10 million. It was less than half of the forecast. Bitcoin past 1000 again on the gox exchange. The threshold in november and then plummeted to as low as 600. Acquiring a Bruising Company servicesorms medical a Brazilian Company that performs medical services. Welcome back. At is 70 minutes past in london. Is 17 minutes past in london. In 2014, it was higher than the Previous Year and Richard Gordon joins us now to give us the headlines. In terms of the increase in spending that we will see for 2014, compared to 2013. Any growth is good growth. Market growinghe at two percent, three percent, four percent going forward. It is a good performance. More moneyre be spent . What is the story behind this increase . People spend money difficult differently. Spending, asfts in opposed to growth in spending. The traditional pc market, as we know, is in decline and has taken up slack. For the big themes that divides the space is the focus orientationsd toward specific tasks, versus price. You think that will be most important going forward. Differentiation on rocks and functions are important as more phones are smart phones. Wearables and that is where the Device Market will go. We know the trends and there is nothing new going on there. There is big spending over seefinancial crisis and we companies thinking that they have all pcs on desktop and what will they replace them with . What is the thinking among those who are making the decision . Will they buy more pcs . Miking e Decision Making process looking like . Job function. He we start with the traditional pc buying and the content creation stuff. The consumer space is more about consumption and they may have a pc at home. The thing they will buy is the tablet or the smartphone. The tablet phone revolutionizes the workplace. To some extent. It depends on the job function. That people are mobile, they are out and about. We will talk about spending on Telecom Services and data se nsor systems. Richard will tell us about the big trends that he foresees in 2014. Stay with us. Welcome back. Is talking about the latest i. T. Spending reports that it increase by 3. 1 this year. We will see the biggest percentage increase. Businessriving the analytics . A nexus ofooking for forces and we have information on big data, if you want to call it that. Four he of those getin the four, we want to better marketing messages and seeove not only be be to 2c but b2b. A is coming in and it is question of being overwhelmed. What you doing that . Companies are moving to the cloud where they store the data. They are and theyre taking it of the Business Model that i and theyrerlier going towards an outsourced solution. They dont want the capital risk and we are seeing the trend quicker than we expected. Perhaps we are still seeing spending on data being done by different people. Is consolidating with providers it is consolidating with providers. Not spending on telecommuting telecommunication services. Why is that . Very mature market get your crystal ball out. What will make headlines in the i. T. Space. Space . \ it is a headlinegrabbing thing right now. Is there some the grabbing your eye . Im not sure what we will see, in terms of mass markets. Great. Good stuff. See you next quarter. Richard gardner. Big publicista and a sale to stop a nine quarter slide. We will find out why on countdown. These are the Bloomberg Top headlines. Speech showthe austerity goals by reducing spending and proposing and income tax reduction to become permanent. The eu could drop financial banks andr the big investment operations. The proposals are removing the provision and it is a narrowly defined band. Flights are being canceled as heavy snow hits the midwest. Some operations had just recovered from the friday snowstorm in the mideast. The worst cold front in 20 years is sweeping towards the east coast. Celsius. Is 13 degrees hello. I am anna edwards. On what is in ev. Ening could noton man improve the performance of htc. They had a campaign that featured Robert Downey junior, of course. Look at to our correspondent wes all the details on this story. Lets get to our correspondent who has all the details on the story. 24 of the they had market and now we are seeing htc lose more and more market shares. Theyre listening to the chinese in that are moving they are losing its to the Chinese Brands and sales are down when he nine percent for htc. Htc. for and a 25 ve assets stake in the headphone maker. That was not enough to offset the fouryear loss, sales loss. Sales are continuing to decline and there is a desire to try to reinvigorate there is no luck reinvigorating the brand. The moment, people do not want to buy the product and they have a new branding campaign that was ambitious. It reportedly cost them billions of dollars. That came upaign with new ways to figure out what htc stand for. Hipster troll carwash. They had a huge catamaran. Thank you. All these campaigns and it is not working. A 5. 9enormousa and it is inch with all of the new mods. Theceo has been appointed global head of sales to direct things a little bit more. They need new Distribution Channels and cutting off costs. At the moment, the customer focus is not Getting Better sales. Carolina hide the latest on htc. Accorded to people with knowledge of the sale, one will take up Elliott Gotkine has the details. Good news for them. It is not bad news. It must be good news. They have parted ways with the chief executive, jeremy levin. There was a spat over the restructuring plans. Advantagesfew big and they said that he is a board member. He is a seasoned executive and formally they had of strasburg head of strasburg. Largeste of the agrochemical makers. Is wellknown to the investment and Business Community in israel. The trick will be to translate that over the lake and to the United States. That is where they have most of their shareholders. New chiefts a executive and the challenges remain the same. Hat. Me woman, different the main challenges that face the multiple sclerosis drug that could face competition as early as this year. If that happens, the question will be how easy it will be for companies to get a copy past regulators. Of that, they have been undergoing restructuring and lance to reduce the workforce by 10 . That was the reason why there was a disagreement between jeremy and the board. There are also shares that are performing terribly. They are hovering around a six year low. Vaey have talked about te being broken up. Side, he has his the support of activists. He has been advising others to do likewise. Thank you. What did your chemistry advise you . Step away from the bunsen burner . [laughter] he taught me to listen. Good advice. Good advice. International fashion be taking center stage this weekend. A stylist sector. Menswear gets its own show and three days of 130 designers. Menswear is worth 11 billion pounds. You cant employs one million people. Fashion employs one million people. David was present and is one of the brand ambassadors. Comes to the business, when it comes to the business, they have pounds of media interests. And christopher cain. It is by appointment only. U. K. Will be the home for menswear. We will see their range tonight and nick is a cool dude here. The radio dj of the year. Bring on the voice. Boys. Front ands seen as center, and terms of technology. Plus, youwith google will have a front row seat at the catwalk and everybody involved in the top brand will be wearing little cameras, rapher cameras. A lot of the excitement is about what goes on behind the scenes. Isnt that right, anna and mark . Behind the scenes at the you. Everybody is filming the point being, you can buy and transact live. You might see something cool. Not that i can wear anything like that anymore . Theres a moment that comes. What is that moment . Barty . Know, my never came in the first place. Wise. Transition, fashion fashionwise. We will move on. Andaking the temperature weete taylor its didnt tailor it . It is time for hot shots. Compelling most images making the news today. Waves that aree famed for being the biggest in the world. They got a boost from strong winds from the atlantic storms. They gathered up pictures and saw at anyone was brave enough to test the surfing conditions. A new year and a new way to dispose of the christmas decorations. Hosted the sport of Christmas Tree throwing. People competed for distance, height, and flinging. Satellite ison designed and built in the country to market the largest triumph of the indian space organization. Welcome back. I am mark barton. Have you just posed of your Christmas Tree . Quarks i did not throw it anywhere. Iket to the allocated took it to the allocated collection point. We will not go there. On the move is off at the top of the hour and Francine Lacqua joins us. Happy new year. New year. We haveare changed and pmi and the Service Industries in the euro area. You can see futures are a mixed bag. Also see the data that Shows Chinese manufacturing falling. Well keep an eye on china today. Click that has weighed on the market. That has weighed on the market. They lower the recommendation on the stock and another one that we do not talk about is elect out. They make radio surgery equipment. On the move will try to identify the Industry Groups that will be your best buys and best picks for 2014. Will the Banking Sector be in focus today . The stock may also move because of global management. We will look at the future of real estate and what Spanish Banks have to selloff. Thank you. Lets take a look at the corporate story. Caroline hyde, it is a big week for u. K. Retailers. There was a profit warning and they lost their cfo. It was put into sharp release and john lewis. Are seeing winners and losers. Who might be more losers is coming up. That comes outnd on the eighth. There is plenty of speculation that these companies have not done so well. Food category does ok they could be under the cost. But two are out there on the street before christmas. We were out there on the street before christmas. The fact that they want to be itwear, many feel that you could see tesco falling. Quarters, it might come to an end. It might. It is being pushed on both sides. The discounter is eating away at market share. Thank you. Jonathan ferro joined us to talk about the macro things. Coming off the back of china, the Services Number is a bit of a disappointment and expansion is about momentum. The other focus will be out of the u. K. Services make up three quarters of this economy. It has been punchy, that data. A lot to watch and we are data heavy. Anything above 50 is expansion. Central banks are a focus this week. Ofin the first weeks trading, you have the ecb, the bank of england and some speculation that the bank of england could lower the unemployment threshold. There is talk abo