We are live from bloombergs headquarters here in london. We have another big interview to bring you with the u. K. Secretary of state for scotland. Support isask why starting to grow for Scottish Independence. That is according to the latest holing. U. S. Budget negotiators have unveiled a agreement to avoid a Government Shutdown. The house will consider the measures. Manus cranny is our markets editor and he has more on this story. Talk us through the details. An imperfect deal, but it is the spirit. They have raised the overall spending limit. They have reduced the deficit. They have done away with nearly 60 billion worth of automatic spending cuts. The military gets a little bit of protection. No tax hikes, that is the message on the republican side. There are revenue increases. Every time you get on a plane, if you are a federal employee, you will be paying more into your pension. Haveryan and patty murray a lot to sell to the house. News washer overnight the approval of the volcker rule by regulators. What does it mean for regulators . I think it is probably true that lobbying does pay. 700 meetings with the regulators and wall street gets their attention. The Biggest Issue was this. Our traders making markets to meet client needs or are they making markets to make profit . The element of profit has been taken away rid has been taken away. You can no longer remunerate those debts in a manner that fits proprietary trading. There are broad exceptions. The definition of hedging is very clear. You cannot say, it was a hedge. Nope, it was a trade. You have got to be very clear. You have to be very clear what you are heading and why. That is going to be critical. Cftc. E comment from the 2. 5 weeks ago, i doubted this legislation. Here we are, it is rigorous and strong. The definition of a portfolio is very clear. Hedging is hedging. You cannot speculate. They say this will be another static situation. The banks are clever. You know . That is my rule of the situation. Bankers are slippery devils and they will find a way. To circumnavigate these rules. Thank you very much indeed. Lets say with the banking theme. European finance ministers in brussels last night inched towards a deal to get toward the Banking Union. Costs when a bank fails. David tweed is in berlin with more. David, the Big Questions still in my mind have been left for this emergency meeting that comes in next week. We still do not have the resolution that we need and this is going to be a very slow process to put this Banking Union in place. When you think about it, when they started talking about a Banking Union, it was only 18 months ago. Seems to me like it has gone incredibly fast. There are so many meetings and so much detail that they need to decide on and so many compromises involved. I suppose that is why it seems like it is a slow process. We are beginning to see how it is going to look. We know that the European Central bank will be the supervisor. Asset quality reviews and stress tests, next year. It looks as though the compromise will be that the European Commission is going to be the authority which decides if a bank is going to be resolved. There is still bickering over exactly how to fund the the final fund and thing, if there is not enough money in the resolution fund, what will be the ultimate backstop . They are moving towards an agreement. That is the noise i am getting out of brussels. To make will be able some sort of agreement at the european meeting. The thing is, what is the legal basis of all this going to be . That is going to be and resting. We could look at some intergovernmental agreement. There has not been a process for choosing a head for the single supervisor at the ecb. What do we know about danielle. She has been at the bank of france since 1974. She has been in charge in france since 2004. She has never done a formal sit down on the record with a major newspaper. That is very interesting. She will have to up the image and Start Talking to the press she has to be the person who will explain why the single banking supervisor might take them of the decisions they have taken. For example, if they were going to actually go there. We do not know a lot about her at this stage, apart from the fact that she is extremely well respected. She spent five years as the secretarygeneral of the board of banking supervision. The so she certainly has a shot. She certainly does. Thank you very much, david tweed. Rbs director, nathan bostock, has stepped down just six months after they lost Stephen Hester. Lets go into more about this. Caroline, another one out the door. Stephen hester and now the cfo, nathan bostock, going as well. It is just 10 weeks into his role as chief Financial Officer at rbs. Anis going to be given orderly handover in terms of responsibility. Some say he has a 12month notice, so he cannot run off to his new employer anytime too soon. It is another poor headline for rbs. Bad just have a glut of press recently. Technology problems back on monday. They could not make their electronic payments. From the eu regarding libor and the Interest Rate scandal. Of course, allegations that rbs is pushing businesses into default. Mcewansa lot on ross plate. He only joined on october 1 as well. He was upgraded from the head of the retail bank. He is trying to get a grip on rbs. Of course, he has promised that he will unleash his new outline on the first of january. He is trying to rally his Senior Executives and make sure they stay on board once the plan is unveiled. Cutsanking unit makes job and of course, they are expecting a substantial loss from the u. K. Lender as they shift a lot of their toxic assets into this bad bank that was unveiled earlier this month. Nathan bostock is returning to his old employer, santander. What will his role be . Fascinating, because it was only a few years ago that he came from santander u. K. , which was known as abbey national. He was the chief Financial Officer there. He is going back as deputy chief executive and chief risk officer. An awful lot of speculation now. Be in charge of helping float this unit . Of speculation that hsbc will be offloading its retail unit into the ipo market. Will santander u. K. Be similarly going to the market and selling shares . The santander chief executive has said not next year, but could they change their appetite for a share sale given the appetite that is out there at the moment . She is currently the head of santander u. K. Will she be leaving anytime soon . Will she be going back to spain . He only left in june of 2009. Going back again, he must have come up with a bit of a bargain, it would seem. It makes you wonder what she will be doing back in spain. Thank you very much. Here is what else is on our radar. Earnings and estimates. Profit climbed one percent three the Worlds Largest clothing retailer is getting a boost from online. For blackfin is going to price the hilton ipo later. It is expected to be the biggest ipo on record. Hundreds of ukrainians have dismantled and antigovernment crowd. Clashes roque out, the ukraines biggest road test in decades. Last month, the president snuffed a european act. The secretary of state for scotland joins us next to discuss the possibility of an independent government north of the border. Welcome back to the pulse. We are live on bloomberg tv, streaming on your tablet, phone, and now any Windows Phone as well. Calls for Scottish Independence have increased for the first time in a year according to the latest poll in scotland. It is a complicated situation. Jon ferro is your do explain. This is a poll that came after the big policy outlines for independence could look like. Support rising, the majority still want to stay within the United Kingdom. A lot of confusion on both sides, particularly the side that is against scotland coming out of the United Kingdom. , Free Education for Higher Education students going into university. How do you finance that . The scottish may face an additional 1000 pounds per year in higher taxes to maintain independence. Then you have the pound. They want to keep the pound and the bank of england. So much confusion about this. With the english allow them to do that . And then you have the membership to the European Union to talk about as well. A lot of people think that scotland would not get in the European Union. Talk to me a little bit the Prime Minister, Mariano Rivera rajoy, the Prime Minister of spain weighed in on the scottish issue. Does the carolina about scotland . He certainly does not. He cares about his own country and the region of abalone up. This could set a precedent, a country leaving the u. K. And getting to maintain their you membership. Eu membership. Stamp that out and said that if scotland leave the u. K. , you can forget about membership. We getuld be way before a referendum of our own to leave the eu. This is a subject that divides the United Kingdom. Thank you so much. Guy, you have more on this. Lets continue the conversation with the u. K. Secretary of state for scotland. Good morning to you. Thank you for taking the time to join us. Despite the latest polling, there seems to be an overwhelming sense, particularly in london, that this is a done deal. That this vote is not going to go against westminster. Is there a sense of complacency . Do you feel the sense of complacency . We know what he can do and what he has done in the past. Is feeling complacent over this, there are still 10 months to go in this campaign. Just about anything is possible. , those of us who went to the meeting in the united is still anre enormous number of dont knows. Who are these dont knows . You see a picture emerging. The dont knows are people who have been traditionally loyal labour voters, who were not massively impressed with 13 years of labor government. , went lock, stock, and barrel to the scottish nationalists. We have seen them do it once. It is possible that they could do it again. At that point, the margins become very tight. Every vote is in play in this election. Thisave got to remember, is a referendum. This is not a general election. It strikes me, as a scottish mp who operate in westminster, you are in a loselose position. If the referendum goes the way of raking up the union of breaking up the union, you have lost the vote. If you win the vote convincingly , is there a sense in the rest of the union, why are the scots voting for this . Why do they think this is in their interest . Are they getting too good a deal . This is not my position. I am using this as a i get your point. The beauty of the situation is that having a strong Scottish Parliament delivering health care, education, transport, and the Domestic Services of while being part of the strength of the u. K. Economy and membership to the European Union as part of the United Kingdom really gives scots the best of both worlds. That does not mean there will be a backlash. I do not see it in terms of a backlash. Does it mean there could be a growing demand in other parts of england to take tighter control of their own Domestic Affairs western Domestic Affairs . Be one of thel unintended consequences. I would be delighted if it happened. You would be surprised if we saw a reaction that says the scots voted for this. Of course they are voting for this. They are getting such a great deal. Why would you not vote for this . The fact that the United Kingdom is stronger for having scotland as part of it. Entityted kingdom, as an , is much stronger than some of its constituent parts. Talk to me a little bit about the pound. The first point is that there is a view in scotland that says the rest of the u. K. Has got to accept scottish use of the pound , simply because the aggregation of volatility and all of the instability that will go with having the scots go their own separate way. That is a valid point. The only people who hold that view are the scottish nationalists. Is aknow that the pound strong, stable, widely respected currency. It is something that people value as being part of the United Kingdom. Terms, they are trying to say, of course we could leave the United Kingdom, but we can still keep the best of the United Kingdom. We like having the pound and the bank of england. That is something they cannot control. They might want that. Actually, there are two sides to that negotiation. If you are sitting outside scotland, you would have to say, well, actually, what we are being asked is that the task they are should stand behind the bank of england, ready to bail out banks over which they have no control. You wonder why, in these circumstances, they would actually want to make an arrangement of that sort. A Currency Union only works if you align your economies closely together. We know that from the eurozone experience. The whole point is that you do things different, not that you have to run your economy along the same lines. You bring up europe. Why are you not, as a strategy, hammering the debate back . People like Mariano Rajoy are saying there is no guarantee. Why are you not taking that in a much more aggressive way . We will see how that argument develops. I think the Prime Ministers intervention was absolutely crucial and telling. Nationalistsof the is to take the risk out. Course we will be members of the European Union. They told us that we would never have to leave. Even the most enthusiastic scottish nationalists would say that if scotland leave the United Kingdom, then we leave membership of the European Union at the same time and we would have to apply to get back in. The question is not, would scotland be a member of the European Union, but it is membership. As part of the European Union of the United Kingdom, we get really positive member terms. Things we have negotiated over the years. You would have to get unanimity among all member states. 20 different capitals and saying, are you going to give us a better deal than you have got yourselves . I just do not see that happening. Thank you very much indeed. A secretary of state for scotland. We also invited politicians to join this debate as well. They were unavailable. We are going to take a break and we are back in a couple of minutes. Welcome back. Lets get straight to manus cranny with your asset check. Essentiallyrkets uncertain on which way to go. France rising, pain rising. In the u. K. , things under a bit of pressure. You waiting for the china dated to come through tomorrow. Wave of negative sentiment, risk aversion sweeping through these markets. Gmaking of australia, getting ready to exit australia. The aussie dollar coming lower. Sell into the rallies seems to be the consensus. You have a 20day moving average. I know you have all gone to sleep. That is the level to watch in terms of resistance. Back to you. Up next, a bloomberg excuses. A bloomberg exclusive. We are speaking to the ceo of orange. He joins us to talk about the industry and how he is looking to grow his business. Just a reminder to follow both of us on twitter. We are back in just a couple of minutes. Good morning. Welcome back. U are watching the pulse we are live from bloombergs European Headquarters in london. These are the Bloomberg Top headlines. U. S. Budget negotiators have unveiled an agreement to avoid another Government Shutdown next week. It eases the automatic spending cuts and reduces the deficit. The house will consider the measures this week. The agreement would end a three year cycle of partisan showdowns. Both wall street and u. S. Regulators are claiming victory after the adoption of a strict new volcker rule. Regulators are pleased with the restraints on hedging and other risks while banks want last minute exemptions for their marketmaking. They are able to push the role 2015. Tart date to july dismantling an antigovernment campaign in kiev. As they flooded the site, clashes broke out with demonstrators. The biggest protest in a most a decade was triggered last month when the president snubbed a european integration pack. Lets talk tech. From smart phones and smart watches the smart clothing, a few startups are betting on wearable electronic devices. We met with one of them. This is the tech summit in paris. Has created aup connected shirt to measure your wellbeing. The smart shirt will be launched in the First Quarter of next year. Caroline hyde reports. Show us your shirt. It is pretty revolutionary. Shirt. S a bio sensing i own many of them. I wear them at the gym, at the office. It is a lifestyle shirt for real life. It reads my bodys biometrics and streams them into my iphone. Takeny live directly from my heart. For every biometrics, the more it is the healthier the biometric is, the more worried about it i should be. Would you were looking at here is my live breathing rate. This is my step count today, pretty low. I should be more active today. My calorie counter is taken directly from the heart touches more accurate. So you are going to consumers first. Eventually, we could be monitoring the