We are getting manufacturing data out from the eurozone. We have seen a series of numbers coming out already this morning and we are waiting for the final number. 52. 7 is the number. The french number was weak, wasnt it . It came in at 47. German 54. 3. Areas of the periphery that had been weak in the past, such as spain actually strengthening. That was against a 48. 6 reading in november. Turning around, the spanish number. Later on the program, well speak to unicredit about the Oreign Exchange story. Fiat shares are surging this morning. They agreed to buy the remaining stake in chrysler it already doesnt own. It gives them full ownership of the u. S. Automaker. Ryan chilcote joins us with more. Marchionne finally gets the deal he was looking for. The stock is up more than 15 . You have to go back to april 2009 to see that kind of share price increase. Really extraordinary. Worth mentioning the Italian Stock Exchange has an upper limit of 10 . They waved it. Investors seem to like it and think it is a good deal for fiat. 4. 2 billion is the size of the overall deal. Less than what was anticipated. Other factors are that fiat is going to pay a small parliament of that. Perhaps a lot less. And the market loves certainty. Now we have a little bit more certainty. This merger is going to go forward now. This merger, you know, Sergio Marchionnes goal since he wasnt able to pull off the purchase of g. M. Lewis, some think that is what fiat needs. How significant is this for marchionne . This opportunity with deal he was first working on but plan b perhaps . He spent pretty much the last decade trying to do it and it was worth wile. Since he became c. E. O. In 2004 2004, he had two mantras. You have to be big and you have to cut production. Effectively what he has got is what he wanted and it is a lifeline for fiat for at least the next couple of years. They will be able to ackstheas cash pile that chrysler has to reinvest and try to make them work and get people buying cars they want to buy. That doesnt mean people will actually buy the cars. He has a couple of years to get his plan up and running. Now investors very excited that we have reached the implementation part of the plan. He has to execute now. It will be interesting to see. Starting to push cars back into a booming u. S. Market. You can see how the story works. Yeah, you know, at least from my perspective, it is a lot more clear of what fiat gets out of this than chrysler. The problem for fiat has been exposure to europe. Now it can sell its cars in the United States and it is already change to to a certain extent with the fiat 500, for example. It is able to reduce its dependence on europe. After all, were at a 20year low for car sales in europe. Marchionne has been at it for a few years. He hasnt been able to make it work there. It is still a lossmaking company. Now gets a shot. Thank you very much indeed. A mixed bag for u. K. Retailers this Holiday Shopping eason. They have announced the departure of their c. F. O. Farewell simon, chief Financial Officer for two years. He has announced he will be stepping down with immediate effect. Kennedy is taking over for the interim period as they search out for a new leader. There was much speculation in the press that he might step down because the numbers have een appalling. The Christmas Period is meant to be standout performance. There was not any. We have not seen a surge in demand. They are having to slash prices. They had to cancel their share buy back. Big concerns at debenhams. That runup to christmas was really quite interesting. Bad weather. People not hitting the stores. The runup to christmas did not go as planned. Certainly not for the u. K. High street. I was out there on the streets for what was termed manic monday for john lewis. Quiet looking at marks and spencers. There really wasnt that much until midday. John lewis, the biggest chain in the United Kingdom said we saw a huge surge. Christmas sales up 7 . They had 11 million hits on youtube. They did a little bit of price cutting in the runup for black monday when we are all meant to go out and go mad online. They saw an increase of 23 in online orders. That was a record third of their christmas business. They got 3 4 of traffic on line was in the mobile. They got serious orders on that day as well. John lewis outperforming. Best ever Christmas Trading period. Deben hams is not. They are saying look, it is early but there is little doubt that john lewis will emerge one of the main winners of christmas. They are going to be stealing market share. They stole it from debenhams. They had manic loss. Thank you. The latest on u. K. Retail. Christmas shopping on your tablet. Aing. Shows you how much of a success they made of that project. Adopting new way s of thinking about what the company does next. In a note from the company, we must give a bigger push for innovations including the Business Structure so that we can lead industry trends. Lets move on and talk more about this with matt campbell. He is our deals reporter. I read this story twice this morning. Im trying to figure out what he is talking about and how you shift a company of this size in the way that he is talking about. There are two things going on here. There is a macro and micro going on. Macro is the tech world, particularly the mobile tech world is littered with onetime leaders who have fallen off the pace and fallen into irrelevancey. Micro is samsung is apples big rival. The only company to keep pace with apple. Part of that has been the strength in asia. If you go to asia, other than japan, you really dont see many iphones. Ou see a lot of Samsung Galaxy devices. Apple realizes this and has made a huge push into asia. Recently making a deal with chinas largest mobile provider. They are coming into samsungs territory. The other thing is samsung is enormously dependent on google. These devices they sell run android. Googsl not in the business of making money for samsung. They want to make money for google. They are selling their own flagship smart phones. Is this how samsung tries to keep up with apple tries to move further than just hardware and into software. Is the battle about apple or google . You want to compete with apple because where the profit is. They sucked up 75 of the profit in the smart phone world. Everyone else was trying for market share. Google is an important ally in that fight because they bring software and expertise in the u. S. And european markets that samsung doesnt have. But you dont want to get too close with google. That is where samsung is with apple. Yeah. It is going to be making this actually happen is going to be fascinating to see how it does. Well be watching this quite carefully. Thanks very much indeed. Lets have a look at what else is on our radar. The billionaires index shows the worlds richest people adding half a trillion to their figures. Ill gates is at top again with 78 billion. Severe kerr sustained schumacher sustained serious head injuries skiing in the alps. What have we got coming up for you . The currency trades you knee to know about for 2014. That is coming up next. Youre watching the pulse. Lets talk about what 2014 is going to bring for the fOreign Exchange markets. Plenty of risk out there. Joining us with his top tips is the head of global fx strategy at unicredit. Good morning to you. Happy new year. And to you. Your trades focus on the euro. We have seen some ok numbers coming out of the eurozone. Germany producing good numbers. Greece is looking like it is back on the positive trajectory. Well talk about france later. How convinced are you . What is the risk associated with betting on a bullish euro in 2014 . Were quite convinced as far as the eurozone recovery is concerned in being stronger than consensus. 1. 45 on average for 2014. Think it is 0. 9 . We are considerably higher than that. There are factors in favor of a stronger eurozone recovery. First of all, we think a potential boost to growth is going to be a pickup in investment and values largely because of the fact of the first half of 2013 what we have seen is a big cap in productivity and profitability and that usually leads into better numbers in investment at the same time, inflation, having low inflation, having not deflation. Having low inflation is actually boosting real incomes in the eurozone. Couple that with the fact that we are running Consumer Confidence surveys, multiyear highs. Usually is followed by any in private consumption. We should not forget that we are coming out of an era where it has been squeezed really, really hard and the low inflation is providing relief basically. Overall we think it is going to be a domesticically demanddriven story. On the back of it, the euro is likely to continue to remain firm throughout 2014. How do those two things interact, though . Ou have a firm euro. 135plus euro on euro dollar. Does the fact that we have the strong euro impair the recovery that were going to get . Based on our research, what the e. C. B. Is projecting, the important thing first of all is to remember that the e. C. B. Is looking at the index of the euro. A 10 increase in the tradeweighted index usually shaves off about 80 basis points from growth in the eurozone over a period of two years. 80 of that over the first year and 20 over the second year. Now this year, the tradeweighted euro rose by 4 . So its impact on growth is likely to be quite small. For next year, where we have uro ending 2014 at 140, this implies another probably 3 to 3. 5 appreciation in the eurotraded index which again is going to have a small impact. Lets go through how you play this. You play this euro yen and against swiss franc as well. Yes. One of our dominant first of all, euro is fimple. There are four reasons for that. These are the four things that we base the story about our firm euro. Increasing account surplus. A stronger recovery in the eurozone. It is exactly the fact that managers are going to start restoring their usual reserve in currencies which went down significantly. And yen, and swiss franc reserve accumulation went up significantly over the pags three or four years. With a sovereign risk perception, continuing to decline in the eurozone, managers will probably start restoring more normal, traditional levels and finally, you the fact that euro stocks had a very good year but on a four or fiveyear, they have massively underformed s p. U. S. Equities. The fact that the recovery, as we expect is going to be stronger, we think they are going to play some catchup and usually, there is a positive correlation. A portfolio effect. As basically equities go higher, people put more money into risk assets and therefore the euro remains stronger. As far as the yen is concerned, well, the yen are our general story is one of risk normalizeation. That was the story for 2013. It continues to be the story for 2014, meaning that you want to fly away from safe havens euroyielding assets. We also think it is quite likely that the bank of japan is going to boost its monetary stimulus because they would like to count act act the negativefect from the tax hike and to increase the chances of achieving its inflation target. Over to you. Thanks, guy. 9 21 here in london. Still to come, concern about burning off those extra christmas calories. Well get tips from the u. K. s Prime Minister. He will tell you how the latest technology can help you get fit faster. Welcome back. A popular new years resolution is to get into shape. The trainer of the u. K. s Prime Minister gave me some tips. Matt roberts trains top business leaders, actors, even british Prime Minister david come ron and he is emoperation Cutting Edge Technology as a way to get fit. His gyms in london already use personal monitors but he believes in the next few years the technology be bound ahead. Monitoring all sorts of data about you. Everything from your heart rate to temperatures to the way that you move. Which direction you have been moving. Respiration rate. Looking at your grew coast levels if for your gluke owes levels. If it all sounds like big brother, they will know if youre slipping the moment it happens. He said technology is getting so good it could put some personal trainers out of a job. It will be better than some trainers because it is so detailed, what they are monitoring and providing. They are phenomenal. If you think personal monitoring is invasive, how about looking at the very makeup of your body. D. N. A. Testing and analysis is being used to pinpoint your strengths and weaknesses. If you can get the information, it means we are wasting less time. Roberts is already using this technology and seeing the results. Good news for some and bad news for those of us who would rather keep our trainer in the dark. There are limits. Apparently he goes running on christmas day, guy. After the christmas i just had, i can believe that. They are perhaps a little bit light on volume but i will show you a market on the move this performing msm the bond market. Yields down, particularly in italy. Italian bonds having their best day in five months. Were getting Strong Manufacturing data from those countries. Spain, italy, germany all showing expansion. Whereas the standout ill performer is france. Yields are just climbing up about o 2. 6 . So clearly bonds falling in france. That is on the back of a disappointing data. A quick check on the euro, down about. 3 as i speak. Back to you. You can follow us both on twitter at guy johnson and at anna edwards news. Good morning, everybody. Welcome back. Youre watching the pulse live from bloombergs European Headquarters in london. Im guy johnson. These are the top headlines. The hsbc purchasing managing index came down to 50. 5 from 50. 8 the previous month. A separate official gauge yesterday showed a similar drop. The British Government got more than 6,000 mortgage an applications during the First Six Months according to David Camerons office. Almost 1 billion pounds have been sought under the program. Michael schumacher remains in a stable but critical condition. The former formula one champion is in an artificial coma. He was in a skiing accident in the alps. Lets bring in greg from paris. What is the latest on his condition . Well, there is no latest, which i guess is good news. On tuesday his doctors gave a press conference to say they had done a second operation on him. There had been a slight improvement in the swelling in his skull after that second operation on tuesday. Doctors said they would not be making any more statements. That was the second day in a row they had given a press conference. They said they would not have any more communication until they had something to say. He continues in that situation a bit better than before the second operation but he is still in an artificial coma and still has lesions on the brain. For the moment, there really is nothing new from tuesday. Our understanding of head trauma has improved significantly over the past few years. What do we know about the kind of trauma he sustained . There are, i guess ironically plenty of comparisons with the motor industry and people have learned an awful lot about how the brain reacts. What are ear people saying about what the other people saying about what the proknow sis is going to be . The doctors refuse to make a prognosis and say things could change for the better or the worse. We know it had to be an extremely violent crash. He was wearing a helmet. He would have died without a helmet. The doctors were clear about that. It would have broke. The helmet broke. Doctors have been very, very cautious about making any sort of forecast they will not be drawn into it. They say it is too early. The next hours would be critical and were about 48 hours from the last press conference. I would imagine that we will know more in the next day or so. Thanks very much for the update. Anna . Jpmorgan has stopped clearing dollar transferses for latvian lend rs. Jpmorgan has been reprimanded by u. S. Regulators for lax controls that could allow for money laundering. Jonathan ferro has more. Lets start out with the decision by jpmorgan to stop clearing dollar transfers. What is the significance . There is concern in the country by some people about which is quite worrying for countries joining the eurozone. A lot of people are asking why would anyone want to join the euro . You have to ask what is in it for the eurozone as well . That is where it really gets interesting. Not just for the p. R. Also for the country itself. The country that has been through quite a lot of restructuring. A contraction. Since then, the last few years, the best performing e. U. Country. This is the country that embraced austerity. Almost the poster child for it as well. You have a country joining the euro that germany can hold up and say look at them, good growth on the back of a lot of austerity. What is in it for them, joining the euro right now . They want to join. They are joining. They have joined but some of the polls are suggesting not neve latvia was as keen. You see half of the country are against joining the euro. Like it or not, they are in it now. Whats in it for them . If you look at politics, this is a country that is part a europe. Anything that happens in the eurozone will affect them. Having a seat at the table means you can impact some of the outcomes. They dont have to worry about transactions anymore. That cakes away some currency risk. For a businessman, you may see more bank lenders for these businesses and more investors investing. Officials in latvia saying we expect borrowing costs to come down. Youre a part of the eurozone, a small country, you know how they an insurance policy in the shape of germany. They have been there and dead keen to make sure every single kunduz not default. Even the likes of greece. You know greece will be towering above them saying no defaults on our watch. The eurozone is still seen by some of these peripheral countries as a bit of a lifeboat even though it turns out to have a few little holes in it. A little bit shaky. Guy, back to you. Lets continue the conversation. Manufacturing data out of the u. K. Slipping in december. November, revised lower. Earlier on, we saw some eurozone numbers out as well. The french number weak elsewhere. Signs of strength. The overall number, 52. 7. David tweed joins us now with more from berlin. David, what does this tell us about the agate picture and the sh aggregate picture. We are seeing a pretty good aggregate picture, guy. It represents the fastest increase in