By acrossare standing the world to deliver the stories that will derive drive your day. The gdp figures. And david is in berlin to look at how germanys digital sector is driving the economy. Theater, we will speak with head of italys Biggest Company dashed oil company. Biggest oil company. He will tell us how he plans to boost profits. We didnt forget about valentines day. Love is in the air for couples and retailers. We will talk to the leader of the u. K. Gift site. That is in the next hour. The italiantta Prime Minister will resign after his party drew support for the government. S is the calm relation homer nation of weeks of tension. From the latest, we have hans nichols in rome. Good morning. He is going to have to defend charges he is assuming the premiership legitimately. Ough the front page of a here is the front page of the paper. The headline is, he appoint himself. He clearly had the votes. It in the Democratic Party. 13616. Likely face awill vote of confidence within parliament. That will include all the parties including the senate. What will happen is conversations between renzi and the other parties. Ce is justof floren 39. E wants to stat this legislature. He thanked the Prime Minister for his service. That would be before enrico letta announced his intentions to resign formally. He will go to the president and resign. Is going to be Prime Minister, he will be the third that was not directly elected. Out snapdent has ruled elections. There is a chance that there could be snap elections. But it looks like Everyone Wants to get through this electoral law. After that, the prospect of elections could happen. But now it will be a smooth transition from one premier to the other. Hands, among all of this turmoil in italy, markets do seem to be relaxed. The yield on the 10 year debt in italy hit the lowest level since february, 2006. Amazing considering the political activity taking place. There are two theories to explain that. One, we are not any crisis mode. Italyer uncertainty is in does not spread out. The other is that matteo renzi will be better at pushing through a reform package. He may cut taxes. He may actually move italy closer to both growth. He has a stronger mandate from his party. 39 years old and the mayor of the city of 336,000 people. Now governing a country, europes thirdbiggest economy. A country of 60 million. Fascinating story. Thank you very much. The footsie one of the bestperforming european market. What political turmoil in italy . Figures from france, germany and others lots of state for the ecb. What will be the ramifications . Manus cranny is here. We just finished with han s. The longest recession on record. Invoke reform. To any growth. Had two years of stagnation. We are looking for a growth level in italy. Percent of growth in italy. Lets talk about this in the context of europe. 11 00 this we get to morning, we are expecting 0. 2 . You look across the pond to the u. S. Growth in the Fourth Quarter was over three percent in the u. S. It is not often that i curry favor with something about that an american treasury secretary would say. Countries could do more to stimulate entries. The world needs demand. That is what european gdp will reflect. A lack ofd demand. The number three economy, structurally unreformed and unrepentant. That is the consensus view for france. You are possibly looking for 0. 2 growth there. And hope that the taxation level will boost your economy to growth. For germany, you are all right, jack. Bmws thenlling more you can throw a stick at. And then you can throw a stick at. But will germany rescue europe . Are you listening to jack lew . Maybe they should. I caught up with the head of the ecb. He said, why not have qe . Qe could be in the cards. I personally doubt it. But eventually some people are beginning to believe it. Does that really deliver growth . Making them not earn anything on your money . Negative rates, qe would be the two issues. But downgrading growth and inflation levels. We will see with the data reveals as we go through the morning. We are in berlin to look at the german growth. Where exactly are you today, david . I wanted to look at the gdp through the prism of the startups, i have come to one of the interesting Real Estate Developments that has taken place here in berlin. It is called the factory. It is in a former brewery. 16,000 square meters. It used to be part of the berlin wall. I am in a glass box at the top of the building. That is why i sound like i am synthesized. I will be talking to some of the people moving into this building. Peoplebe talking to the of sound cloud, the audio music platform. Has 6 Million People using it. And in 20 minutes, i will be speaking to the founder of this entire project. He hopes this Real Estate Development called the factory will become a hub in berlin for startups and more stab at companies. I will be speaking to him in 20 minutes. Gdp releasederman soon. How important is technology for germany . Isthe Digital Economy becoming increasingly more important. It is growing around 10 a year. It now represent about three percent of the entire gdp. It doesnt some like so much, but it is becoming more integrated on a lot of levels. Inm the Auto Industry four people employed in the industry, you can see that is also growing. About 430,000 across germany. Year. S growing by 810 thank you david. Live in germany. Investng up, how do we in emerging markets . We will talk to rodriguez of black first. Bloomberg. Time for todays company news. Fourthquarter thatngs that most of growth was from acquisitions. They are facing increased competition. Shipments in china fell for the First Quarter in more than two years. Idc says it signals growth in marketgest smartphone may be marked it moderate. Telekom says they planned to be the leader in central and Eastern European markets by 2018. They say they will continue to eye ou by assets and upgrade networks. Welcome back, i am anna edwards. And i am mark barton. Indexerging markets dropeped to a low last week. We are joined by gerardo rodriguez, specialist at blackrock. Question to start off with. Should we buy emergingmarket assets . It is always time to buy emergingmarket assets. Returns they will come from emerging markets. 80 of the population and 50 of the gdp. It only 20 of financial assets. You can only think of growth when you think of emerging markets. If you want to have growth and returns come a you must have a portion in emerging markets. How should we differentiate . The south africas . The turkeys . The brazils . Which categories to divide them into . The creation of these different they created confusion in the marketplace. Are part ofntries willbasket they differentiate themselves and the individual dynamics will become more important. We have got to read interesting period in which all economies grew at a fast pace. They have developed their own idiosyncratic stories that will dominate as we go along. What were seeing there are certain countries that have significant nominal rigidities. Like argentina, venezuela. You have to think of them in a special manner. Within those countries, there are those that have developed over the past couple of years external and internal imbalances that are unsustainable. Markets are reacting to that. There are also countries that are not experiencing any imbalances. Because of that, you have seen more stability and their financials. Can i ask you about mexico . You are from there. You would be the first person to studio and speak enthusiastically about it. The recent economic history is one in which the economy has not been able to exploit its full potential because of significant strengths constraints. The Energy Sector is the most important example. The new government comes in with thatection result allows them to construct majorities in congress and have congressional help with the agenda. They bring together the different ideas of different parties. That has been the base upon which they have been delivering significant reforms on the structural side. With telecom, education, competition. And lately on the energy side. You have the potential to increase gdp growth all the way to foreign a half or five percent. Is itommand commitment to reform that makes you excited about a particular market . Gaining does seem to be momentum in some cases. We have seen recovering markets. Marketstory of emerging is one of rapid growth. That captures the attention and imagination of the marketplace. 2001 to 2011, there was a rapid pace of growth. This was because of a reform agenda executed in the 1990s in difficult and challenging markets. Unfortunately, it is the lack of reform momentum that has started effects on certain economies. Markets are reacting to that. When you look at the world, there arent that many places that have showed the willingness to do the right thing for their own countries, even though it may have a shortterm political cost. Next goes at the top of the list. Mexico is at the top of the list. Joining usrodriguez from blackrock. We will hear from the role about the role of startups in germanys economy next. Countdown. Back to we are looking at germany through the lens of the startup scene. He caught up with the founder of a startup incubator. My name is simon. I am the founder of factory. Forhe factory is the space startups to grow from each learn from each other. We look for a place to on theilding was east side of town, containing the east population. We have the innovators of the future working on what will become the future of the german economy. The factory is in direct relation to berlin as an ecosystem. It is an earlystage place. We have created a different approach. Relevant. Is you have youthful founders with great ideas. That is why we differentiate and call this a organic accelerator. We are creating proximity. David is at the factory with simon. David . . The factories creating quite a bit of the buzz. Sound club will be here in the spring. Simon. To talk to there is a lot of interest in the startup scene. People are talking about the difficulty of getting funding. Theres Something Else that is needs to happen. What can encourage the Digital Economy . [indiscernible] we could foster the really have ae Legal Definition of what a startup is. Make sure it becomes a regular business. What are some of those parameters . Asking the authorities to have [indiscernible] it sounds weird for somebody asking money back. Stock options is another area that is difficult. Absolutely. Tovately, we will be having pay taxes at the current valuation. That is at the same time that we will have to pay the premium on the . You were in brussels presenting ideas about this. What kind of reaction are you getting . Is very supportive. There are seeing high unemployment rates. They believe the Digital Economy could be a solution to that. What are you trying to achieve here at the factory . Make early stages work better. We have much to fulfill with all the hype going on. We are going to see that happen, i hope, here. Happening in start the spring when people start moving into the factory, this former brewery. Fascinating. Thank you very much, david. Year has been a testing for the company. Next. S im mark burton. Here are the top headlines. Enrico letta in italy saw his Democratic Party draw support and turned to rival matteo renzi. The president must decide whether to appoint a new Prime Minister or call elections. Environmental agency says river levels are expected to rise. They had ever spite yesterday after more than two months of downpours. The new storm brings rain and wind. Company s says the israels techof industry is vital. He says the industry is galloping like a horse. If you dont gulp with the horse, it will go up without you. If you dont gallop with gallopurse, it will tell u without you. Welcome back. Im mark barton. Anna edwards and i anna edwards am. Here is more on the french economy. We have france growing by 0. 3 in the Fourth Quarter of 2013. That beat the analysts estimate. Only two quarters of growth in the past. We have a bunch of data to come to the morning. 0. 3 . In terms ofth david technology and revolution in germany. Germany is the Growth Engine. Responsibility to really drive up demand in france. Likewise with italy. Deliver agot to growth number because they have had the longest recession since world war ii. You have a state of political chassis in italy. Going for a new for government. Overall, 0. 2 for the whole of europe. That is when you begin to put things in a global context. A rise of 0. 2 for europe would contrast with the u. S. Which has percent. Over three you begin to understand the debate that jack lew delivered. Countries their responsibility to drive demand. Those are the comments coming through. Suffering from a disinflation cycle in europe. A threat the threat is you are looking at a japan style economic threat. That draghi himself denied at the news conference. What is in the toolkit . , withn you look at it some levelheadedness, you have to say could quantitative easing i caught up with head of the ecb. Possible to have qe. But that is a big ask. Those are the two missioncritical issues for the ecb to consider. They have downgraded their review on inflation and growth for 2013. And and mark, back to you. It has been a week for chinese economic data. This morning, we got inflation. Lets go to hong kong for the details. Beijing ridge east released its inflation data five hours ago. Much saw was not that just about what was forecast. Forcoming in at 2. 5 january. That was about the same exact growth we saw in prices for the month of december. Wholesale prices, which essentially measures prices that atthat shut up further. The trend is clear. As far been in deflation as Consumer Prices are concerned. We have to take into consideration that china is scaling back the industry. Practice prices at the factory gate. That does not mean we will get easing. Bringing down the level of debt in the economy is a bigger concern. David, this is not the last set of data. The most important comes out today or tomorrow, money supply. What has been forecast . Haveat is right to read we three today or saturday, metrics. One is the broadest measure of growth for the Monetary Base in china. The forecast is 13. 2 . That would be the slowest pace of growth in 18 months. Also, new currency loans. To top about expected what is more interesting is the amount for aggregate financing. Everything from lowes to equity and debt offerings. He forecast, 1. 9 trillion re thanks, david. David in hong kong. The south African Mining company angloamerican reported earnings. It it has been a year for the ceo Mark Cutifani. When you manage a large, diversified mine company, i would say it is as easy as hurting cast. Herding cats. South africa accounting for about 45 of the revenue. Elements of uncertainty provided by the strike. Jacob zuma spoke about the strikes. He has to walk a fine line. He assumed that it to the strikers, but he knows a company like angloamerican is the largest Credit Sector employer. You can see how this could impact the lives of anglo. It is not just south africa and brazil. They have a huge iron ore project. Gavepolished the boot that we are expecting some decent numbers from them today. They had good numbers from real. Rio. We saw the cost of iron ore rise. We know they are probably going to have a good boost to profit from the estimates today. Looking for earnings of 9 million for the year. Some big numbers from them today. Like rio tinto. Not quite as big. We might be talking about cash. Think you very much. Lets move it on. This is bloomberg, 6 30. The championship face gets under facingth manchester giants of sports. Match analysis is next. Time for todays company news. They are reporting estimates that beat estimates. Says the executive group is on track to achieve 850 Million Euros in savings for the fiscal year. His online mecca they will provide a Distribution Channel for content and access to emerging markets. Sony playstation for has retaken the lead in u. S. Videogame console sales. Used to havex one the lead. Sony was able to take the january lead. Analysts are watching the sales closely to see if the market has permanently lost ground to smart phones and tablets. Welcome back to countdown, i am anna edwards. Lets talk football. We are crunching the numbers in preparation for the champion matches. Arsenal announced some big games. Dave is here. Massive week for the in which teams english teams. They are the kings of possession, arent they. I wanted to show the size of the task that faces us. Giant games next week. Was 63. 6 . That is extraordinary. They have managed to improve that. Possession. The opposition under 30 . Over 700. These are off the scale. I was secretary the comparison with everybody else. It is off the scale. Is like the old days. Of course it is. That is the point of the style. Some say it is more direct, which it can be. It is still possession, the absolute key. You keep the ball, the opposition cannot score. And 0. 5 this season. They came away with a victory. Look at this. They would have come away with a bigger victory. Look at the position in the game. This is just a game. They managed to restrict to 45. Had bayern arsenal had two shots in the game. Canoes show that bayern sometimes keep the ball and not do a great deal with it. What arsenal needs to do is be more direct like they were last time. Get inside the 6yard box you never know what might happen. Surely they have no chance . I didnt want to tell you this, but we were going to do some stats for arsenal against the top six. To they have a chance . Of course. From my personal opinion, i think bayern is so powerful. Barcelona. R look at this. Manchester city and barcelona, these are third and second in the domestic leagues. Goals court, manchester is 68. That means barcelona laid fewer. Played fewer. Remember as well that barcelona did not have he will probably be missing for this game. It shows how extraordinary the goals come from everywhere. I think city had a big chance in this game. It will be fun to watch. There both