Quicktime francine lacqua. Coming up, rollsroyce matches sales records. You are looking at live pictures of the new race model. We will take you inside the car dealers luxury model and show you how to avoid paying a 400,000 price tag. When ryan drives the car, must watch television. We are going to get ryan to drive it again. This is a mustsee moment here on the pulse. Speaking a pricey product, would you pay 300 for a hoodie . A pair of entrepreneurs are betting you will. One of them doesnt run facebook. We will talk about that story this hour. Manus might even wear it. Tesco, morrison and Marks Spencer all reported reduced holiday sales as consumers cut back on everything from food to clothing. For a roundup on this retail story, lets bring in caroline hyde. Ouch. Lets look at the grocers first. Tesco, morrisons, morrisons was the worst in the whole of europe. Falling the most in what five years . Slashing more than 300 pounds of its market capitalization. The reason, profit warning. Sales down more than five percent over the Christmas Trading period. Off by 5. 6 . Similar story for tesco. Sales disappointing, down 2. 4 . Blaming largely a weaker grocery let up in europe or asia either. It is worth noting tesco is still huge. One billion pounds taken in five days. That is more than 2000 pounds per second. Tens of millions of customers. Billion investing one in refreshing their stores. They are still not seeing the reforms from this. The new stars are starting to pay off new stores are starting to pay off. But still, disappointment for tesco, disappointment for morrisons. Marks spencers, if we are looking away from the grocers at retail in clothing retail, Marks Spencers, 10 straight quarters of clothing on the downside. 2 fall in january. Many thought that they would just stagnate but far worse. Theyre blaming the weather in october. Pricesdnt have to those in the runup to christmas. The actually knocked them off by 50 . That meant that we have seen not as much profit and it failed to get us into the shop anyway. Salesubt 0. 5 growth in just in the week before christmas but that failed to live up to next, john lewis and others coming out a far better results. Where is that big turnaround . Where is the new dream team . Dream came . Disappointment on the high street for the u. K. Disappointment and christmas all around it seems for the moment. Thank you very much indeed. Is cutting its supply contract with the worlds biggest dairy exporter, a new Zealand Company called fonterra. Contaminationing for last years product recall over a contamination related to baby formula. Catherine is standing by in our paris bureau. Good morning, francine. It is a fairly big deal for danone because Baby Products represent about 20 of their annual revenue. This all started about six months ago in august when fonterra warned about using this baby formula that could cause botulism. It can cause pallor oocysts or even death. The damage seemed pretty limited because fonterra only bought a 12 million provision for that. Danone really started to measure the impact. They say they had to cut their they had thest and slowest sales in 16 quarters. They started really being concerned. That is when also they decided they would seek compensation. Now they are suing fonterra and this may have caused 300 Million Euros in lost free cash flow. Mostly it is about Brand Reputation for danone that has been damaged. That is why danone does not want its consumers to be scared or uncertain about their products, especially in asia where most of the products have been recalled and where danone makes about 20 of their revenue. Warned that 2014 will be a very unbalanced year for dan on danone and this problem could actually cause a three percentage point impact on growth in the last quarter of 2013. Back to you. Thank you so much. We talked about margins, profit, but if you dont have the then it is a very difficult gamble. Ok, lets move on. It is snap chat for professionals, the new app confides launched yesterday and it promises the corporate world a selfdestructing message to ensure communications stay off the record. Sounds very even hunts. Our very own ethan hunt is here. Hans nichols is here to explain. This is a challenge we probably all have. You want to send something confidentially but you are concerned about leaving a digital footprint. Confide has come up with a way to target businesses. They want this to be snap chat for the csuite. We are going to give you a demonstration here. I have received a message. Click this on. There is a message. See how this is covered. You run your thumb across and you see the message and it says sell all your bitcoins. Chinas central bank is about to ban it. You have three minutes. Insidertrading. Obviously we are not Insider Trading here. [laughter] but you can reread it . For two or three minutes. You cruise across. It would be very hard to take a picture of this and it does it now when you want to reply. You can screen grab it, all those things . The technology is always one step ahead of the guys in the i. T. Department. This is whether the regulators are going to be concerned. This is why we used the Insider Trading example. A 3. 75 is paying million fine for not saving electronic medications. Special companies that are regulated, what are the required to archive . What is required by the law to archive . Will this lead to Illicit Activity or will the very resumption that youre using this lead to the resumption . This could just be gossip. All the stupid things we message about throughout the day. Forgettable. Re 80 are fighting. Scanning, iris security is a big deal now. They willr april likely have their new phone. They will have Iris Technology and your communications will be secure. Thank you so much. Fascinating story. All about that data security, protection. Mission impossible. I be obviously dont have anything bad to say about anyone or Insider Trading. Believe that, youll believe anything. Andbank of England European Central Bank will release their first decision of 2014 today. Lets talk about the differing decisions they are going to make. Manus cranny joins us for a briefing. Lets start in frankfurt. Mario draghi of course has the wholek over banking system, cause and effect. What he does in terms of getting lending, we have bank credit dropping for the 19th month in a row. He is going to oversee the banks. The banks have to hold more capital therefore they are less likely to lend. That is his challenge in terms of looking at what to do with financingadditional for the european economy. Could be the possibility of longterm loans with contingencies. Negative deposit rates, both those kites have very little flight in their sales. I think what you get is a fragile growth, no bank lending and disinflation. That is his economy. Side, mark other carney looking at the best growth since 2010. Unemployment, the big trigger 7 . Mark carney could face that trigger as early as june of this year when he would look at rates again. It wouldnt provoke a rate hike is the rhetoric they are telling us. Carney has the alter ego of economies as i say in the u. K. He has storming growth and the climbing unemployment. Declining unemployment. A statement would undo the word that we look for which is confidence and robust Forward Guidance. Manus, thank you very much indeed. The bank ofreaking england Rate Decisions for you by here on bloomberg television. That happens at noon london time. Frankfurt time, we have the ecb decision coming up. We were bring you many rio draghis press Conference Live and in full. About 1 30. Ng here is what else is on our radar. Vigodman as its new ceo. Some other big csuite changes today. Management shakeups at standard chartered. Asy have named mike rees deputy chief executive. U. K. Eurotunnel passengers will soon be able to use their mobile phones at any point in the undersea journey. This is also true for french eurotunnel users. Or even belgian. Betweenment was reached the tunnel operators and vodafone. Aroundt of wheels worth 400,000, that is the rolls royce wraith. It sold out through to june. We got our hands on this one. Details on the latest sales figus coming up next. Good morning. Welcome back. It sales record for the fourth Straight Year in 2013. Ryan chilcote joins us now from inside one of the brands hottest models. Ryan. Eat your heart out, guy johnson. I know you wanted this gig. This is the wraith, one of the reasons rollsroyce did so well in 2013. A record year for them. It is rollsroyce first two door. We are to give it a whirl here. This nice wood covered ashtray here. I didnt know that people still smoke in rollsroyces. It is a keyless car so you just press the start button here. We go down. It is important to get this right because the only thing worse than crashing this rolls would be crashing it into the roles that it is parked in front of. Were off. This gentleman passed us. Car atve introduced this the geneva car show back in march area they started producing it in october. The last few weeks of 2013, they delivered a couple hundred of them. They are already sold out through may. It is a really hot car. It is their first twodoor. The whole idea is to get a different target audience. People like me except for obviously i cant afford the 230,000 pound starting price tag. Almost everybody wants to customize their roles. Dont they . It is done very well. It has got a of the 12 engine, 624 horsepower. As soon as the light goes green, we will test it out. Geographically, they were very happy that germany came back online this year. Good growth in germany. The biggest markets of course are china and the united states. Real good growth in the middle east. Sales up. Lets test this engine out. Pedestrians, stay out of my way. We are to leave it there for now. I will be back in the 10 00 hour and hopefully i wont run into anything. Yeah. Thank you very much indeed. I think i have just found my new chauffeur. Ryan chilcote, man for the job. Of rollsroyces figures, lets take a look at what is happening in the luxury car market. Who is buying what . Joining us to discuss this is the man selling these highend vehicles, the founder of one of the u. K. s reading luxury car dealerships. Rollsroyces sales figures this morning are showing that there is still incredibly Strong Demand for very expensive cars. Not here in the u. K. Where ryan is driving around the block, it is in places he says like the united states, china and the middle east. There will always be a demand for rollsroyce, particularly the new cars. There are actually more demand for secondhand rollsroyce in the u. K. Than there are for new cars. What does that tell us about the nature of how this market is going to evolve . These things depreciate quickly. Is it smart for people to go, you know what, i will wait for a year . What is the warranty on rollsroyce . Five years. Buy one a year later, still four years left on the warranty. That strikes me as telling you something about the nature of how this market is evolving. There is a demand even for secondhand rollsroyce is to be exported in the middle east and china. Demand is so high there. The u. K. Market, you can buy a good rollsroyce for as little as 100,000. If you are running rolls royce, if you need to worry about the cars depreciating so quickly, do you think that could cause a concern . It is not just rollsroyce. That is a lot of the luxury performance brands. There are exceptions to the rule. Ari ferrari are about to launch a new model this year. Ferrari, get new one of these things, you will buy off may i will pay 250,000 more than what you paid for it. It veryri have made clear that they will limit manufacturing to try and maintain that exclusivity. What you are telling me is that kind of story might pay off. It always does. It is all about supply and demand. If you look at the Sister Companies of rollsroyce, surplus cars because production is so high. Rollsroyce is trying to control production by making less cars. That will strengthen the price. Do you think the customers care about depreciation . Some do and some dont. This is a story of one mans meat, another mans poison. That customer wants to customize the card to his color, his specification. It was a lot stronger many years ago than it was today. If iere better value am buying a rollsroyce, do i need to be a lover . You want to drive a rollsroyce but an average highend consumer, do you think they will be happy with a bentley . Is bentley offering better value . Is that something i should look at as well . Is there a series of alternatives that i could think about here or is rollsroyce Still Holding that cachet . Everybody is different. Purpose. Ey fits its makes you, any car feel more proud to drive. I have sold them for four decades. Nothing compares to a rolls royce for luxury and quality. How many of the people that buy rollsroyces from you drive them themselves . That is a good point. Probably 50 . Like the others get somebody else to drive them around. That is right. I am just coming back to Ryan Chilcote being my new chauffeur. Great to see you, thank you bring much indeed for stopping by. If you happen to have one of those ferraris, maybe tom is your man. Francine, over to you. Now you are talking. Money, morere problems for kanye west. The new Virtual Currency named after the singer has launched early after his lawyers filed a ceaseanddesist against its creators. As a concession, they have coinyed the name from west. Good morning. Welcome back. Youre watching the pulse. Straight to our markets editor, manus cranny at the touch screen your asset check. Equity markets ahead of the central bank and the bank of england, just trying to eat out some gains. The question is, will they last . Come over here. One mans challenge they are both challenges, this is euro against the pound. You have got a strong pound, that is the difficulty for mark carney. This is the euro falling against the pound. Lookake that and then you at what the challenge is for mario draghi, and ever resilient euro. This is the euro against the dollar. Draghi wants to put a cap on the eurodollar. Carney wants to put some pressure on sterling as well. The currency is the key in some ways to both these economies. Those Rate Decisions will come later in the day. I will cover them live here you here for you. We have talked a lot about retail through the morning. Look at this, marks and spencer now turning around. This was down 3. 5 . They had a terrible christmas time but he is on the Conference Call doing a pretty good job. Yes, we went for fashion slashing prices before christmas but other when earlier. I was cold. I was standing outside one morning. Marks and spencers turned it around. That is one company we are watching. Overall, you are going to get jobless claims in the states today. The adp number was pretty darn strong. Tighteak was also fairly but futures indicated a little higher in the last 24 hours. Manus, thank you very much indeed. You are called, you can wear your 300 footie. When you will pay 300 for a hoodie . A parent entrepreneurs is that in you will. Youl hear from this would hear from them this hour. As we head into break, this is what we will be showing you. Not only hoodies, we are also talking Central Banks. Welcome back to the pulse live from bloombergs european headquarters. I wanted to stress the live. We are live. And a life. I am guy johnson. These are the Bloomberg Top headlines. Christmas has failed to deliver for some of riddance britains favorite supermarkets. All poor reported reduced holiday sales. Consumers cut back spending on everything from food to clothing. There are reports that at least five people have been killed in a Chemical Plant blast in japan. The blast happened at a Mitsubishi Materials plant. Local police say at least 16 people were hospitalized. There has been some csuite check out this morning. Teva and others have announced boardroom changes. Standard chartered named mike rees as deputy chief executive officer. Named Erez Vigodman as president and ceo. Lets get more from Elliott Gotkine. Areare anticipating this you have been trimming this for the last couple of days. The change now confirmed. That is right. He is due to take up the role of ceo and president on february 11. Vigodman is currently a board member and chief executive of and agrochemicals maker which he turned around during his four years at the helm. He is going to step down as eeo at that company and take up that role as ceo and president of teva on february 11. At the same time, acting ceo is going to go back to being the chief finance officer of teva. Huge challenges for the new incoming chief executive. The last one left following a spat with the board over restructuring changes. They are looking to lay off 10 of the workforce to cut cost in anticipation of generic competition for its blockbuster drug for multiple sclerosis. It brings in 4 billion a year for teva. Shares are hovering around a sixyear low. Hey are down a smidgen today a lot of challenges to be faced by the new chief executive when he takes up that position. Teva has also tell us about that. This is yesterday afternoon. There was an announcement that teva had raised was trying to this. Another offer for as a treatment for migraines and the like in the united states. Teva trying to trump endos earlier bid by making that bid. As yet to decide which of the two is more compelling. Levin adopted a strategy at teva to go for companies that are offering new forms of treatment for ailments that already have treatments on the market, but new ways of treating them. After years of blockbuster acquisitions, teva just cant afford to buy big anymore. It has one of the biggest debt loads in the pharmaceutical industry. That tevaon or so should be able to digest. Thank you bring much indeed. Elliott gotkine joining us from tel aviv on teva. Casual menswear. Change and it will cost you a pretty penny. Cracks it certainly will. It will be interesting to see whether Mark Zuckerberg is interested. Mark manus cranny certainly is. Lets let him i