Transcripts For BLOOMBERG Countdown 20140404 : vimarsana.com

Have a special report on how the u. S. Designer michael kors is beating european brands in their own backyard. Welcome to countdown. It is 6 00 here in london this friday morning. Bloomberg reporters are standing by across the world. Looking ahead to the job stated in the united states. The day is the last day to register as a candidate to run in ukraines election. Caroline hyde has the story about how michael kors is grabbing market share in europe. Lets tell you what is coming up on the program. We will be live in italy, a beautiful views from the lake. Focused on the biggest threats to the Global Economy and what needs to be done. The former chairman of Goldman Sachs Asset Management jim oneill will talk to us. That interview within 15 minutes. We will hear from former ecb board member. Do not miss our exclusive interview with the chairman of ru. It is jobs day in the united states. It is watched by the fed. Our markets editor is here with all of the details. Is it been has it been supportive . When you look at some of the parts, the adp report that beat estimates, auto sales, the highest since 2007. The momentum is building and the number of jobs losses cut the number of firings, that is beginning to baseline. That is the precursor to a real level of growth. We are looking for 200,000. That is the consensus estimate. 10 of the most accurate forcasters are going 215,000. Hadjobless numbers we yesterday, 42 states sell the jobless claims drop. 1 saw a drive saw a rise bank of america leading people go from the trading sites. It is still a very tough own theg, but we will twitter conversation in terms of unemployment. Twitter. Of nail the number. Make sure you join that conversation. Can we have the inside info on your guest on your guest . Guess . I am a middleoftheroad kind of guy. You are feeling middleoftheroad this friday. Yellen. Lk about janet she uses a whole dashboard of numbers. Give us a vision of her dashboard. We are going to get five. It has changed. We will talk about jobless numbers, payroll, unemployment, the longterm unemployment number is perhaps the most important. This will go back to supporting her comments at the start of the week. Accommodation needed for some time. Two thirds of the dashboard is still reading worse than it was before the great recession. That is quite something. That tells you a great deal about the data. Two thirds of what she looks at is nowhere near the recovered state. That gives you a sense of the kind of challenges they have. The longterm unemployment, and this is talked about a great deal. Real stories in the economy. The longterm unemployed, over a third of them have been out of work for more than 26 weeks. That is twice the average of the last recession. We are dealing with a very structural issue. Thank you very much. Tensions between russia and ukraine heated up as russia said it detained 25 ukrainian citizens suspected of plotting terrorist attacks. Russia raised gas prices for ukraine for the second time. In ukraine, it is the last day to register as a candidate in president ial elections. Ryan chilcote joins us now with a break down of who is in the running. Give us a primer. This is a two horse race. We have one guy with half of the electorate. The best known outside of ukraine. The most recent revolutionary movement. She did that from a jail cell. The Ukrainian Court system decided because she cut a bad deal contrary to ukraines National Interest with russia for gas supply. Interesting person. Many of her supporters and the European Union felt that trial was politically motivated by her rival, the ousted president. She is out now. She has been out of jail for two months now. The very day he was ousted, she was released. She Just Announced a couple of weeks ago that she will run. She only has about 11 of the electorate. If you talk to ukrainians, they are ready for something new. Think she hase twice been Prime Minister and we need to try somebody a little different. What do we need to know about him . He is the willy wonka of ukraine, the chocolate billionaire. Ood chocolate i am not a huge chocolate fan. We sent the wrong man. Glitzy, shiny store for everything that ukraine isnt. It is representative of the hope. As henow in to ukrainians was the foreign minister. He is a guy who has lost out to the conflict. He had a factory in crimea and a factory outside of moscow that has been seized by the police. Most ukrainians think when it comes to dealing with russia, we see how important that is today. He perhaps is a man who could do it. A very pragmatic guy. Wins heay that if he will sell his Chocolate Factory and concentrate on politics. He is the guy to watch. We will have more on the challenges whoever wins the election will be facing. U. S. Defense secretary chuck hagel weighed in and the situation on russia. He spoke exclusively to peter cook. Peter asked him if the Obama Administration has misjudged president Vladimir Putin. I do not think anyone misjudged him. Lets go back to 2008 when president cliputin invaded georgia. This is not a new approach that he has taken, but what you always have to do is always be prepared. We will have more from that exclusive conversation coming up later. Years ago, u. S. Luxury label michael kors was little known in europe. With Stores Popping up in highprofile locations, it is stealing market share from its bigger european rivals. Here is Caroline Hyde. What sort of pace of growth are we talking about . Pretty phenomenal. Sales have more than doubled in two years. Europe is getting a bigger piece of the pie. It is 10 of tackle coress entire sales of michael courts Michael Korss entire sales. This is a company that is managing to double sales, but he phenomenal. It has given the chief executive that much more ambition, that much more optimism on the growth that he can have in europe. He initially thought 100 stores is about where europe could take it. Now he is saying 200 stores. They are opening in very high profile streets. In london, regent street, in paris. They are really going for the highend and they are looking to take on the rivals such as gucci and hernmmes. Tell us how they have achieved this. Get theare managing to elusive luxury meets affordability without washing out their own view. They are managing to keep that luxurious feel. Still having a much cheaper price tag. Is how much we are seeing their bags. Euros is how we are seeing their bags. I do happen to where michael , 200 pounds for a watch that looks pretty strong. I like it because it stood out as a masculine watch. That was something i felt was affordable. This is for the aspirational buyer who does not mind mixing zara with their more luxurious labels. The fashion establishment in europe, should it be worried . Hole that filling a they are creating at the moment. Vuitton having to up the prices. A much higher for price range. It is hurting them. It is hurting the likes of mulberry. When you think that this is a 300 billion industry and the main battleground is europe, a third of all sales come from this one region. They have to steal back some of the incentive. With,ing i will leave you it is a victim of its own success . Many think it is marketing too much. The view on exclusivity may be diluted. We will have an analyst later on this story. Japan asels trip to part of the obamas pivot to asia. Peter cook sat down with them for an exclusive interview. We will have more on that conversation, next. Welcome back. Secretary chuck hagel is heading to japan as part of the Obama Administrations socalled pivot to asia, it comes renewed eastwest tensions over crimea. Peter cook asked chuck hagel if there is any sign that russia will back down. Did the Obama Administration misjudge Vladimir Putin and the challenge posed by russia Going Forward . Lets go back to 2008. Georgia. D this is a particularly new approach this is not a new approach he has taken, but what you have to do is always be prepared for anything, any possibilities. I do not think it was a matter of misjudging putin. Did, we stillt he do not understand fully. The point of responsible governments is to have strong options and capabilities and be prepared. That was chuck hagel speaking to peter cook. We will take you live to the workshop for an interview with the former chairman of Goldman Sachs Asset Management, jim oneill. Welcome back. Lets go live this morning to the ambrosetti workshop in cernobbio. We will be speaking to the former chairman of Goldman Sachs Asset Management. Im, thank you for joining us lets talk about the biggest threats to Global Growth right now. There is a list to choose from, i guess. What worries you . A number of things are nagging away at me. Is alowdown in china neverending thing to focus on. Of in the camp that is sort all deliberate and quite manageable, but every now and then i think, it is getting a little bit out of hand. Global relevance of china, in many ways, i would say that is the single most important thing. In the socalled developed world, you have growing differences of issues with the u. S. And europe. It is increasingly about the exit fromut how they the Economic Policy in place. In europe, you have this growing battle against inflation and whether the germans are prepared to take it more seriously. As if the ecb, mary draghi, he, mario what is stopping them from taking more action . I think it is the position of the german influence at the ecb and more broadly. I think it is not right. If the ecb is going to hit its germans have to accept the possibility that their inflation rate should go above 2. They do not seem to be prepared to accept that. How we canlear to me meet the situation without putting the deflation pressure on spain in on spain. That is not the right policy to follow. It looks like the markets smell that with european equities doing so well. Lets talk about some of the faster growing economies around the world. Do you feel slightly let down by some of the medical establishment question political establishment . You gave them such an economic platform and reforms have not lived up to your expectations. Of course looking ahead to the elections in india. It is very naughty of them, isnt it . It is very unfair. What is interesting is the past few weeks, a lot of these socalled emerging markets have done rather well. India and indonesia have done really well. To cope with its own local elections. It is quite interesting that people were fearing so much and many of these markets have recovered impressively. That tellsow whether us that people are little bit more balanced about some of these issues or they have high expectations. The indian one this weekend is the biggie for them and whether they can get more decisive leadership. What they missed is decisive leadership. I would look for Better Things that of india. If you go around the corner to indonesia, there are really high hopes. He would be really quite effective. It is going to be a big couple of months for these places. In russia, how week do you see the economic picture . Weak do you see the economic picture . Economy isian amongst those that have been so disappointing the past 12 months. Crisis, thehis russian economy is weak already. , modestlyatest data to the upside. I guess we will have to see what andimpacts of the markets the applied pressure from foreign governments will be on investment spending. I would imagine, given how putin stancemir seems to be with his domestic voters, i doubt whether it will negatively affect consumers. In terms of investment, that will be the probable source of weakness. How long do you give russian leaders to reorientated their economy away from such a dependence on the oil mark critz oil markets . Before you consider removing acronym . Om the bric 13 years on, he each of the b biggernomies are much than i thought they would have been 13 years ago. They have had two disappointing years. If i put it in the perspective of where i thought they were coming from, this is not something i am thinking about in the next few months, i think about it in terms of half decade cycles. If we get to the end of next russia showing no signs of policy leadership and diversity, i would start to have a lot more concerns than i typically read people suggesting today. They will have to do things to improve the economy supply side and reduce dependency on oil and gas. What excites you most about which growth story excites you must . Are you most excited about one of those . I was just in nigeria last week. I have been traveling to africa quite a lot. I have been in nigeria more than any other part of the world other than the u. S. Perhaps it was keeping only keep me away from Manchester Uniteds performance. Indonesia is doing way better than many people feared. In terms of the big influences, i think china, even with its slowing, is still the major marginal driver of what is going on in the world. Lots of places to see some exciting Economic Growth and opportunities that go with it. Thank you very much for joining us. I will try to get hold of your travel records. Much. You very former chairman of Goldman Sachs Asset Management, jim oneill. To minus crowley. The markets smell the possibility and the germans might except a higher inflation rate, but no actual delivery. 137 as he uses that language of discussion in terms of the use of unconventional what they are, you and i will talk about that a little bit later. Coming back ever so slightly. High,e just off a 10 week it is risen for the Third Straight week. I suppose it all comes down to todays unemployment numbers. Thank you very much. A Bloomberg Survey of economists shows u. S. Employers picked up the pace of hiring in march for a Third Straight month. A raw numbers are released in a few hours. Payroll numbers are released in a few hours time. U. S. Defense secretary chuck hagel says nato is considering sending a new u. S. Army brigade to europe to counter the threat posed by russias buildup near ukraine. It is among a number of options being considered. He is on his way to asia for meetings with japanese and chinese officials. This is not a contained china approach. This is an approach to reach out to try to be more open and communicate and coordinate, find ways we can work with each other and common purpose. We do that now with the chinese in many areas. We have differences . Yes. The only way to deal with that is to be direct and open. Hillary clinton and Christine Lagarde took part in a joint interview in new york. Author regarded as potential president ial both are regarded as potential president ial candidates. Is there any other job you would be interested in . [laughter] comptroller of the state of illinois or something . Not right now. Economicreat of sanctions on russia is pushing to a plan b. David english joins us from the far east. What is happening . Morning. I am joining you we are looking at russian nickel exports. A lot of geopolitics involved. For a lot of these business, you get a lot of these uncertainties on the politics side of things. Markets werehese currently are shut, what is plan b . Based on the survey of nickel if china, it seems as seems to be that plan b. Russia is already the worlds biggest reducer of nickel. Chinaappens to be happens to be the World Biggest consumer. It accounts for 46 . It does make sense from a buying capacity perspective. All that is happening puts more pressure on russia and its counterpart here in the far east. To improve those economic ties. One of the things being talked about now is this natural gas pipeline. This is one option a lot of people are saying could be viable. What does this do to nickel prices . 17 from the start of the year. When you look at nickel prices and why the prices have come up, you have to consider that here in asia, you have the indonesia factory. There is a little bit of a supply concern when it comes to that. Together witht possible trade sanctions on russia, we could see prices of nickel top 20,000. Deutsche bank says we could average 17,000 four 2014. For 2014. David, thank you very much. 15 million cups of coffee are served up in the u. K. Every day. Some are better than others. We will set the coffee down and the people will be impressed and they will say, how do you do that . It is technique and practice. I want to show you how to pour the perfect latte. Making coffee for about five years and it comes down to the beans and the machine and experience. , it isu see people do it very quick movement. Almost a muscle memory. You have mixed the froth into the milk. Database down get a base down and you can pour, whatever you choose. It is how you heat the milk and how you pour it. He makes it look so easy. It does not look like that in my kitchen. The london Coffee Festival kicks off today and we are taking an inside look at the business behind the beverage. Do not miss that conversation in the next hour. Also coming up, how did miley cyrus get caught up in the scandal between russia, europe, and the u. S. . You would have more on the intricacies of enforcing the sanctions against russia. Multimedia will make a game console in china after the nation lifted a 14 year ban on the devices. The game player is compatible with mobile games for googles android system. Next lab is defending sales of its smoke alarm after it determined the units could be switched off unintentionally. The potential malfunction was revealed in a lab test. Not aware ofhe is any customers who have experienced the problem. Google bot nest for more than 3 billion in february. Investors are trying to judge how much asias Largest Internet Company is worth after fourthquarter net income trailed estimates. Welcome back. Get to Ryan Chilcote who has some insight for anybody who is considering doing any business in russia. We have been talking about sanctions for the last couple of weeks. I have with me a partner who has spent the last decade advising companies on how to deal with sanctions. Thank you for joining us. You must be really busy. I went to your seminar yesterday and i have to say it was packed. A lot of attention on the russian sanctions. I think there is a lot of attention to what the sanctions will look like. But here in london, here in london, this is because this is a Financial Capital that russians do business in. Rish thanks, u. K. And british banks, u. K. Institutions do a lot of business in russia. Lets get into the sanctions. I was reading about miley cyrus, how she could end up in trouble. Explain that to me. The issue that has come up is she is doing a concert in finland. The concert venue is owned by a company that is owned by one of the people who has been sanctioned by the united states. Performmeans she cannot . The company that promotes her concert may have an issue with respect to renting out that particular venue. Justin timberlake as well . Books are you representing them . Are you representing them . The majority stakeholder. Examplebring up another . This is not a very Large Russian bank. The credit card holders of that bank found they could not use their credit cards. And mastercard stopped servicing the cardholders of that bank. Whatevers. Companies, the Financial Institution is, can do business with institutions. Individuals who are sanctioned. They have to make their own calculus in terms of who they can do business with based upon what the sanctions are. They stopped servicing the credit cards of two banks. The only entity that was actually sanctioned by the u. S. Government. Then they resumed servicing the credit cards. It looks like that was because the brothers had a less than a controlling stake. That is important. , thee way it works sanctions apply to the individual or entity that is named in the sanctions by the u. S. Government and also to any company that they have a 50 or greater ownership interest in. That is what u. S. Institutions are trying to figure out. Who are those controlled entities . Is there a lot of room for interpretation . It is difficult to know exactly what the ownership percentages are. There is room for interpretation. Some have sought guidance from the treasury department. You have done a lot of sanctions advising over the year. How do the russian sanctions measure up . A lot of done sanctions advising. The russian sanctions are limited in scope, only those individuals and the one entity are named. Those entities that are controlled by those people. Iran sanctions, on the other hand, are much more comprehensive. They are much more of a comprehensive ban on doing business with the government of iran. Very different in scope and scale. Way. Ts hope it stays that thank you for your time. We have been live this morning from the ambrosetti workshop in italy. We spoke to the former chairman of Goldman Sachs Asset Management jim oneill. Our markets editor is here to take a look at some of the highlights. The is the man who created acronym for bric. Interesting have thoughts on china. As the government got it right . Right . The government. It interesting that jim oneills view, who has always been quite a believer in the chinese government, he said, mostly i am a believer. Whether it is deliberate or got away from the chinese, that was very interesting. The overriding principle was 13 years ago when he christened that acronym, result, russia, india, and china, he made the point, i am amazed by where we are in growth. It is interesting that he does make the point, it could be just the one that got away. When you put everything together, maybe they are putting structural change in place like the germans did in the 90s. We do not realize it yet. It could be a very long game. They are not wedded to that 7. 5 . They are not assessing about 7. 5. Other people might be. The ecb Rate Decision yesterday, no change, talk about his reaction. He was talking about the germans being in the way. It is a fact. Unless you get the germans to accept, a slightly higher level of inflation than two percent, it is not going to work. You have to get the germans on board. Mario draghi was talking about it yesterday. Path of thent central bank and what is going on in europe. The u. S. Is increasingly about the payroll, how they exit from the easiness of monetary policy. In europe, and you have this growing battle against inflation and whether the germans are prepared to take it more seriously. That is something that worries me from a european perspective. It is a heinous crime to make statements ahead of the unemployment numbers. To be fair, jim oneill has the luxurious position. I was asking whether he would the r from bric. How long do they have to deliver . He talked about time frames, look, you had this slow down over the past two years. It is better that you think in half decades. A longerterm timeframe. The past two years have been tough. If we saw another 18 months of that economic performance, the lack of stewardship, policy , that would change his mind. Then, of course, nigeria. To talkhen we moved on about mexico, indonesia, nigeria, turkey. He said he spent more time in nigeria than any other country at the united states. That could be quite insightful. I wonder if his travel plans will tell us anything more the next big story comes from. Thank you very much. Coming up, cap very loses a trademark appeal. Dbury loses a trademark appeal. Welcome back. Just over an hour away from the start of most european trading. Lets get to the newspapers. 12 s comes from paved page 12. It is about the hbo series Silicon Valley. Do notded he did you have to make this stuff up, reality is funnier. Not all of the geeks thought it was funny. It is being made by Silicon Valley . Not really. Ceo was there. Silicon valley is funny, but in a different way. T starts off with kid rock the main characters i was trying to copy you. Richard is the ceo of a Company Called pied piper. He has to decide between a 10 million offer. Or whether you should invest. He is kind of weird, anyway. Interesting. Sunday on hbo. This is from the independent and we love a good story about the pros and cons of certain childrens names. Apparently, there are some that is that are going extinct. A number of names have not been used at all in 2012. Bertha, willie and roland. Other short names are far more popular. Lily, hannah, patrick, and joe have been kept. A lot of names are more popular in their shortened terms. Thanie is more popular frederick and charlie is more popular than charles. I have not heard of anyone called phyllis a long time. I have worked with a phyllis and they bertha, but they are not children. Lets talk about chocolate. We are vaguely close to the weekend. Urys rivals aadb purple patch in time for easter. It is a chocolate maker in the u. K. And they wanted to trademark this purple color. The purple color is technically that is the technical description of the collar. They wanted to trademark it. The company has been using it since world war i. They lost an appeal that would allow them to trademark this. They were up against nestle. My children will be delighted because they have an Easter Egg Hunt tonight. Town is purple. It means a lot to them. The second hour of countdown continues after the break. High hopes for recovery. How many jobs did the u. S. Economy created in march . We will find out today. Recovery, that workshop where we will talk to some of the biggest names in economics. Chuck hagel talked to russia. Does he signs up see signs of russia . Backing down there are troops that are moving around. No indication of any significant large troop deployments away from the border. The special report on how u. S. Designer is beating u. S. Brands in their backyard. Welcome to countdown, i am anna edwards. Welcome to the second hour. Bloomberg reporters are standing by to deliver the stories that will deliver test drive your day will deliver the stories that will drive your day. Onoline hyde has the latest how michael cors is grabbing market share in europe. From the workshop in italy all day today. And liveinging news interviews. Focused on the biggest ripped the Global Economy. On the move will hear from the former ecb member lorenzo. That is later. And a dont miss our exclusive interview with the chairman of Global Economics roubini. Data in the u. S. One of the most important world. C data in the the fed is watching for signs of economic every. A look ahead to some of that data. How supportive has it been . Quite supportive. The Services Number coming off a four year yield low. The Auto Industry side is softer. Strongest since 2007. The trade deficit widened. The number we are looking for, consensus estimates, 200,000 is the median estimate. Median unemployment of 6. 6 . The lowest since 2008. During the great recession, the economy lost eight. 7 million jobs. The recovery they have recovered all but 66 6000 jobs. With wages, the participation rate. The longterm unemployed. You are seeing the likes of bmw that spendwill say 1 billion. Employers holding back. Trend ise overall firing has slowed. That could be the precursor. We are going to own we will be all over this. These are the s you will need. Nail the number. Very american. What will you contribution be . Cranny. Ll be at manus you youur ago, i told were to consensual. 250,000. 000 you have done over the top. Lets talk about janet yellen. Y bitss is one of the ke of data. We talk about the dashboard she uses. One is the slack in the economy. She referenced it the other day. It considerable slack. The dashboard has a variety of elements. The joblessness. The unemployment rate. The longterm unemployment rate. Its patiently. I draw your attention to those because two thirds of the dashboard are still worse than they were before the recession. Hence the reason she is using support for some time. Test growth and layouts are the elements that are back where they were before this great recession. Longterm unemployed will be critical. More than a third have been unemployed for more than 26 weeks. That is twice the longterm couldoyment rate recession. Whether that overstates or understates, i am not ready to say. Thank you very much, manus. The jobs report later. Tensions between russia and ukraine heated up as russia said theyd detained 25 citizens. They also raised gas prices for ukraine for the second time. In ukraine, the second day to register as a candidate for a candidate in president ial elections. Ryan chilcote joins us for a breakdown of who was in the running. It is effectively a two horse race. A lady and a guy. There is the picture. How could you forget . Where he way behind. The polls were done two weeks ago. It does not look good for her. There was another candidate, heavyweight boxing champion. He pulled out and thrown his support. Twice Prime Minister of ukraine, went to jail. The same day that Viktor Yanukovych was ousted. She was accused and tried and convicted of doing a deal with russia for gas supplies that ran contrary to the natural interest. Was a politically motivated trial. She did get out. She has been running. She does not have all the support she would need if this election was to happen. The frontrunner is boorish ankle. Borochenko. Which notpany to plug them makes nice chocolate. Contrary to what you would expect. Very interesting guy. Has done a little politics. The first and only billionaire to support the opposition throughout the protests. Going contrary to the perception you would think. In terms of the locations he has assets any factory in crimea. Beenutside moscow that has seized by the police. If you ask the crew ukrainians, they see him as pragmatic. They ate see him as somebody who can do is mess with russia. Arrestnformation these, when the u. S. It stops paying attention to necessary toill be manage that relationship. He is the guy to do it. Plenty of economic challenges. Thank you very much. Ryan chilcote on ukraine. U. S. Defense secretary weighed in on the situation. He spoke to teacher cook. Peter asked him at the Obama Administration had misjudged president putin. I dont think anybody must misjudged him. Lets go back to 2008. President clinton invaded georgia president Vladimir Putin invaded georgia. This is not a new approach he has taken. Is beou always have to do prepared. We will have more from the exclusive conversation coming up later in the program. Label michael the cors was little known in europe. It was stealing market share from bigger homegrown rivals. Moresk airline hide with here is Caroline Hyde with more. Sales have doubled in two years. The American Company is dealing market share. Also snapping up shop fronts. The chief executive it is getting far more ambitious, far the pace ofnt, as growth outstrips the industry. Juggernauts u. S. Rivals that are trying to penetrate. Tony burch. They are going nowhere near as strong as michael cors. The chief executive is more ambitious. Stores. To hundred what makes this late full attractive. Luxurysible fine line of meets affordability. Her i have one. Have one. Sclosure, i 300 euros rather than the 3000 euros you might see from rivals. They are managing to attract the aspirational buyer. It is amazing to think how far they have, in europe. A dictate different tactic. Are they doing anything. Different . The growth is opposite to what we are seeing from gucci were leaving town. Vitton. Uis they are raising the prices to grab back the aura of exclusivity. Reducing the amount of stores they have. They want to become less wellknown. Michael kors is going against that and taking up the void. You will have to wonder if they can continue to walk that alateen act. Between being luxury and also to 2005. Our mind back burberry begin to regain it became downmarket. Became too popular. It had to rebuild itself from the ashes. Rebrand. We are seeing the same sort of effect with which he gucci they are to reconnect too recognizable. You see them everywhere on the public transport. We need to keep in mind that this might become too popular for its own good. Thank you very what is your favorite coffee . Being . Americano. As the Coffee Festival takes off, the business behind the brewed beverage. It the in the know discussion coming up. S beating european rivals. More on the player when we come back. Time for todays company news. Vivendi will hold a Board Meeting today as they near a decision on selling the french phone unit. The board will determine whether can close in on its proposal to merge. Jpmorgan, the u. S. Biggest bank withsets, will merge another business unit. Be folded into the new yorkbased treasury unit. And u. S. Government officials that will not give u. S. Backdoor access to secrets. The pentagon and the Biggest Telecom Companies Use ibm servers. New noaa says they will not have access to the servers because ibm down,e back to cout i am an edwards. Anna edwards. Joining us in the studio is the heads of actually good a luxury goods research. Why has michael kors been successful . The brand has been successful. The appeal to younger consumers looking for affordable luxury goods. Ofalso have a large number consumers who cannot afford the highend gucci. Lots of these high end brands have been putting up their prices. There is a lots of pentup demand for luxury items. Why isnt European Business filling that gap . They are going highend. Why are there not more homegrown markets . Brandsink a lot of the are based on the target behind the net worth individual. Thats where the money is. Brands are clever to get to that kind of affordable luxury racket and be successful. Kors iscors successful. They have expensive dresses, but have cheaper watches and accessories. Very distinct price points. They can keep up the luxury or out. How much can they keep the balloting that . Balancing that . Introducing more luxury goods . Definitely something we will see more of in the future. Brands realizing there is this bracket of affordable luxury. Lots of tree brands are not targeting. Has been very successful in the lower brackets, renewing new products coming out. Consumers do not get bored very quickly. Has been great at targeting the younger demographic with internet and facebook. The website is amazing. It is all about being a jet setter. It is a younger model. Im interested in the fact that close did not have tackle michael kors all over, but they are not understated. Kors is michael continuing to deliver that kind of product. Lowerpricedat the point is trying to target. The higher and are looking at discrete but tree brands. In china, logos or out. Are out. Consumers, who are new to luxury, it is about showing off rands. Off brands. Wing will that happen to michael kors . It it may will do. It is a case of being successful with managing the brand. There are other u. S. Fashion labels that have come to europe in recent years. Have they been a successful . Definitely. It is the area that is more affordable. The cheaper end of michael kors. Are now seeing kate spade coming into the u. K. Looking to branch out. It is the appeal the more affordable luxury brands. J. Crew, another brand that has been very successful. Opening more stores in the next year or so. Thank you very much for joining us. The head of luxury goods research. Just ahead to, the threat of tougher economic stations is exploring firms to explore a plan b. White could push nickel Prices Higher next on countdown. Welcome back to countdown. I am an edwards. Of sanctions this davis joins us from hong kong. What business are we talking about here . When we talk about russia, it is usually about natural gas and energy. Switching the destinations is difficult. Do need theed infrastructure and pipelines in place. It is easier to find another buyer for nickel. We are talking about nickel and russia is looking east. We are looking at that is the biggest producer of nickel ore, for example. They are looking at china. The biggest buyer. From a buying capacity, china serves as a big market just in case those trade sanctions do occur. To the does this do outlook for the price of nickel . Nickel prices have been any care. That is because of the export. You cant ask this export unrefined or. The deep pens on the type of ore. , production, other things. Upk the prices can go further if you combine those things. Back to you, anna. Thank you, david. David reported from hong kong. As the london coffee testable kicks off, the business behind the brewed beverage. That conversation next in our in the known discussion. Copy, comed get a back, and we will talk about it. Welcome back, i am anna edwards. Really delivers a view of how the markets feel. The nonfarm payroll off a threeweek high. The risk is of course the numbers might disappoint income below 200,000. He spoke and uttered the words. Quantitative easing. What shape and form as a wholly different thing. The dollar flatlining. Unanimous on the unconventional to. Anna, back to you. Thank you very much. Top headlines this hour. They picked up the pace of hiring. March payroll numbers released in a few hours time. Economyts believe the added 200,000 jobs. Compared to februarys gains of 175,000. There is change. He will join the bank in may as the chief finance officer. He is cohead of investment banking. Now it is the first day of the workshop in italy. A host ofare weighing Economic Data after the ecb signaled it would be ready to begin quantitative easing to stimulate europes economy. I spoke with jim oneil about russias slowdown. Goldman sachs Asset Management chairman says he does not expect the slowdown to continue. The indicators are much bigger than i thought they would have been 13 years ago. Yes, they have had two disappointing years. As has brazil. Ofi put in the perspective where i thought it was coming from, this is not what im thinking about in the next few months. Lets move on. 15 million cups of coffee with served up. We spoke with a london and paris ff for paris stuff barista. They say, how did you do that . His technique and practice, really. A name is adam and i am barista. I have been making copies for five years. It comes down to the beings, the machine. Experience. It, it isee people do almost a muscle memory. Mixed the froth into take this andt mix it with the coffee. Put a base down. Then you can pour your whatever you choose. That is how you keep the milk. How you pour it. No more than that. That is just hot melt. Milk. More coming up on the Coffee Business in a few minutes time. Im sure there are plenty of coffees consumed at the workshop in italy. We are joined by London Business School Professor who is at the conference. Thank you professor for joining us. I wonder we can look at the euro zone economy . The ecb president mario draghi conceding that qe had been discussed. I spoke with jim oneill. Formally of Goldman Sachs. He thinks the germans are anyway of any qe. What is standing between the ecb and qe . Of course we were all t the ecb didtha not move yesterday. There have been discussions of certain consequences. Its more than that. It is euro area, difficult to assess what is the potential effect of such policy. Especially in a situation where Financial Markets have fragmented geographically. Issues of implementation. How qe would be of limited. What quarters. Details which of have to be discussed. Not just qe as we have seen for the u. K. And u. S. Move a version, which will be different given the nature of the european markets. Especially financial fragmentation. There will be some work of preparation as well. You say it is difficult to assess, but i know you have been called the queen of numbers. You are an expert in short Term Economic forecasting. Is inflation easy to work out . Some seem to work look through the current weakness and say it is cyclical factors. Is that your view . That is definitely not my view. I have seen that the ecb has produced. The analysis about seasonal factors. The factor of composition. I think there are week numbers the numbers are worried very worrisome for inflation. The surprise is the negative. What matters is the unanticipated component of inflation. The fact that the forecasters have been surprised on the downwards for quite a long time. This is unexpected. And as what worries me lot of people in the markets. His thoughts view on this topic . He has been saying that it is theoretically possible to have quantitative easing. On the other hand, he has been emphasizing the cyclical nature of some of these numbers. You think germany is on board with the possibility of qe . Lotsthink there have been of signs that germany is on board. Positionmoving their on that topic. Something has to be done. Zero interest rate. We have to think about exceptional measures. Something has to be done soon. Timing, the ecb, since the crisis, has often been behind the curve. Successral bank the is timeliness. Being ready to act soon rather than later. I hope they will get their act together. Other countries have done qe. Including the u. K. Forward guidance by the bank . Has it been a victim of its own success . It was so successful in driving Economic Growth that that is why it had to be abandoned. Forward guidance it is too early to say. There are issues of how you want to implement it. It would be a mistake to link Forward Guidance to a single indicator. Which is so hard to predict, the labor market the bank of england is moving to a broader concept. I have some sympathy with that idea that one should look at to more than one indicator. A broad set of indicators. There are tradeoffs. The we should understand it with the news coming from the economy. There will be more that we will see. Forward guidance will be linked with howr transparency the Central Banks think. What are the models. React to news which comes from the economy. Surprisedmists were you were not named as a new desk giving me would you like to have your say . In the not interested mpc. I have not applied for this position. I applied for the position of vice governor. I did not get the position. I would not apply for the i have a lot of projects link to europe and italy. Follow thesay bank of england as a commentator and academic. Thank you very much for joining us, professor. Joining us from the workshop in italy. To we will take a short break. Coffee break in the u. K. We will look at the growth of that market. 20,000 people are expected to visit the costly the festival over the next few days. Time for todays company news. They will make a game console and china after the nation lifted a 14 year ban on the devices. Is multimedias game player compatible with android systems. They can be played on any tv. Extended sales of smoke alarms after they suspending sales of smoke alarms after revealing they could be turned off unintentionally. They said they are not aware of any customers who experienced this problem green bay bought int for fish in february february. Thatgrowing concern Internet Companies are grow overvalued, they are trying to judge how much asias Largest Company is worth. Welcome back. I am anna edwards. Are expected to descend on the london Coffee Festival. The event kicks off u. K. Coffee week on todays in the know discussion. The business behind me brewed beverage. An analyst inby the sector. Jeffrey, thank you for coming to talked with us. How big is the coffee scene in the u. K. . A huge amount of impact on British Society today. Over 20,000 coffee shops across the u. K. 550an five 5000 branded chains. Quite amazing when you consider the tough times that that five years in capsules. Absolutely. Analysts have been surprised by the robustness of the sector. It an affordable treat that consumers can drink. It is part of the fabric of British Society today. We use coffee shops for a variety of reasons, not just for the copy. The wifi. The meetings. You ever drink tea . Absolutely. I enjoy a good cup of tea from time to time. But i am in the copy cap. Talk about the role of independent players in this scene compared to the big established change. Starbucks. It and then other chains like costa. Growth for both camps. Very strong growth of chain concepts. Lastor development in the five years has been the growth of artists and independence. The quirky one artisan independents. Highquality products. They are having a big impact on the chain and operators. They are raising the game . They have invested in training. Approved their roasting improved their roasting. Techniques. Costa has introduced beverages like the flat white. You take some credit for the reduction of this flat white into the u. K. Coffee scene. We made comments five or six years ago teen saying it needs to go on the menu. A lot of chains took that advice. It came from down under . Australia new zealand. That advice has paid off. It accounts for 510 of some of the players. What is the role of coffeehouse is to mark it has a long history. We are a nation of tea drinkers. Tea and a history of coffee establishments they were places where people met to exchange ideas. The city of london was founded in the 17th century around coffeehouses. Absolutely. In as of london began coffeehouse. London does have a heritage of copy. With theforgotten colonization of india. That led us to more of a tea drinking nation. But the coffee houses have come back. They play a vital role in the lifeblood of todays world. Any good poetry recited in the coffee shops . They are artistic places to be. It includes of. Winwin inclusive and women friendly. You can be there on your own or with people. The festival has art. Whole sections on the artistry of coffee. Chocolate pairings. Absolutely. We are coming to understand that coffee is an agricultural product. A gourmet product. Profiles andlavor mixing different foods together, chefs have done that for some time. Now that is in the coffee industry. Chris i know you find it to go to pick your favorite. Is the beverage i like. Creamy and light and delicious. We give me a copy shop to try . Gem is in london. Thank you for joining us. Time is and tenant syntel 8 00. 10 minutes until 8 00. We will take a short break. Where the European Equity markets are headed. Futures are pointed mildly height or higher. More when we return. Welcome back to countdown. Care line height is here to talk about what we need to double Caroline Hyde is here to talk about what we need to know. The financial director might be leaving as soon as next week. That is the story. 23 on the uncertainty. This is a rumor we have had for most of march. The pressure has been building. Think of the market share falling. 28. 7 . Theyre at that is the lowest since 2005. Putting the pressure not only on but the financial director as well. There five years. As of the ninth of january. He was a distribution director before that. He took up that position. Talk about someone who is been integral to the business. Lets talk about easyjet. Brighter spot. Passengers are up again. Almost fiveaffic up percent in march. Set to gain in terms of its share price. 23 . Sent 5 million customers in march. They have been trying to make inroads and ryan air. She led the charge making it a nicer experience. Iran number working in baking. We did used to use easyjet. More people have caught on to it. Now you are ticketed. You have a seat. Is acceptable, especially in the era of austerity. Ryan air has been taking a leaf out of their book. With the website. Giving a located seats alloc ated seats. Watch out for the opening of european markets. Pointing a little bit upwards. On the move is next. Gauging the expectations for the job date. Is the market too optimistic . I will see you again monday. Welcome to on the move. I am Francine Lacqua at Bloomberg European headquarters in london. Coming up, we will speak to a former ecb board member. First, we are moments away from the start of european trading. Our markets team has everything covered, from companies to currencies. There with me is Ryan Chilcote, manus cranny, and Caroline Hyde. Caroline, you have jobs. Everybody is nervous. Will they deliver . Will they underwhelm . Yellen part of the dashboard. Five elements will be delivered today. Taking a little bit of money off the table. Why get caught in the wrong direction of a bluff . Onsomeone always gets caught the other side. You are watching ukraine. It is a twohorse race. Ukraines willy wonka and she is the princess lady. You have seen her hairstyle. Forgive me. Obviously, they have their work cut out for them. The gas price again, second time in a week for ukraine. Ukraine accusing them of terrorism. Will keep track of that throughout the program. Caroline, you are watching