This is the big interview of the day. We have some big interviews, bringing you and talking about Global Business of sport. There is a big event going on downstairs with some of the leading minds in the sporting world. Two of the top attendees will join the pulse today. One is the principle of the red bull formula one team. Hims chief executive called his ideal successor. This is the guy they could be running f1. Red bull has dominated the circuit in the past few years. We have seen changes to the rules coming on the horizon. The 2013 car will look very different from the 2014 cars. Big rule changes. We will talk to him about that. We are also going to be joined by the chief commercial officer of arsenal, tom fox. He will explain how he is working to promote the club to an International Fan base. We will also hear from the ceo of the Brooklyn Nets. Find out why he is feeling lucky ahead of the nba faceoff in london. They are playing the Atlanta Hawks. Lets focus on france now. The questions were avoidable. Francois hollandes policy conference was overshadowed by his personal life. He vowed to clear up the well, who is going to be the first lady, saying he will make Big Decisions on the economy. He will make a decision on who is going to be the first lady before his trip to the United States. It is such a bizarre situation. Of because barack obama needs to know. The french people can be kept in the dark. The four that trip, everyone must know. This is the big decision he is going to make. Not the french economy, not sorting out the International Story when it comes to French Foreign policy, who is the first lady. Lets talk to Caroline Hyde. She joins us from paris. She was at the press conference yesterday. I was one of the 600 journalists packed into the palace. Dripping withroom chandeliers, gold, red velvet. Be aor what was meant to fight for Francois Hollande political life. Laying out the agenda for where the economy was going. Instead, the questions came thick and fast about his personal life. At least 4 questions were asked, the first one about his first lady. He is not married to her, but she is a longterm partner. That was the first question with the alleged affair swirling in the press. What of the first lady . He dodged the question. Everyone in his or her personal life can go through ordeals. That is the case for us. These are painful moments. I have a single principle, which is that private matters are dealt with in private. For now, no answer. We all have to wait until february 11, when he has a trip to the united eight, to clear up whether she will remain his first lady. Sticking up y he is not clearly sticking by her. The rumors are rife. Every single french person has a little bit of an inkling that he has a new first lady. Private matters are private. Maybe that was true 20 years ago. Times have changed, especially with the internet. He refused to give any clarity at all about his personal life. What about for policy . Much more. This is what he wanted the agenda to be about. From theuturn previous president , who promised a crackdown on the rich. He has promised to bring in the business and tell them that the economy is going to be higher. He unveiled the socalled responsibility packed. That is to cut labor charges. He outlined that 30 billion euros will be wiped off of labor charges. Also, simplifying regulation. He said he would overhaul regulation. In return, he Needs Companies to hire. He unveiled that they would be offering 50,000 new jobs to the youth this year. The lobby for business saying that if you cut charges by 100 billion euros, we can multiply that by 20. You would be hiring some one million more people in the economy. This is so necessary. This is a man with his popularity at record lows nearly. Unemployment at a 16year high. The economy remains sluggish for two years. You need to turn this around. Drastic measures for a socialist president , now trying to woo in the business leaders. Thank you so much. Caroline hyde with the very latest from paris. We will continue the conversation in just a few minutes. By the frenchned socialist mp. Looking forward to that conversation. It seems digital was making all the difference. Manus cranny has been pouring over the figures. How did they do it . You have got to say that angela has gone along with christopher bailey. Asia, tech, and beauty. Retail, 67 of their business. That is where you saw a strong showing, stronger than the market had look for in terms of the numbers. Digital is about 10 of their business in terms of revenue. Three times the size of the industry with digital delivery. They are converted. What do they mean by that . You come into the store and then go online. You are spending money. You are engaging, they are converting. You are spending. You have a complementary mix. A compelling christmas, Digital Innovation have been the keys. When it comes to the beauty component, they are saying that we tried a promo called beauty box just before christmas and it looks like it worked. They want beauty to be about 140 Million Pounds worth of contributions through 2014. That beauty is the entree into the burberry spirit. Margin, experience the product, grow up, earn more, and you get to buy the 1500 pounds tote three coat. They are converting. That is a critical part. It will be a tough year for european luxury. Burberry has the Beauty Products online. Overall, it will be quite tough as chinese spending may have slowed down a bit. At play is a new regime in china. That is going to impact not just the amount spent domestically, but also the nuances between hard luxury and soft luxury. Luxury, as an industry, underperformed for the first time the general market in five years. A ceo summed it up beautifully. There is more pressure coming from china. The yen continues to weaken in japan. Goldman sachs says you will see intensified anticorruption rhetoric and occupants coming from china. There are a lot of headwinds out there. Burberry is focusing on one. Foreign exchange. It will be a continued headwind for burberry going into the second half. The question is, can they sustain their margins . We have talked about this. Some of the products, specifically within beauty, deliver nice, upbeat margins. Bags are us. I cannot see myself with one of those huge, big bags. But the coats . Oh yes. I would love to see men wearing bags again because then i would have to carry less. The Chinese Private equity firm is considering a bid. I am going to get you a bag. [laughter] guy and i. No. The future. Men are not the kind of bags you are thinking about, i think. Making a bid. S Jonathan Ferro joins us with more. I am not going to talk about handbags. But a company with 6. 8 billion at play. Interested in united biscuits. Normally people in this country would not have heard of them, but brands they definitely have heard of. Digestive, penguin biscuits. It is a brand we all know in this country. A Chinese PrivateEquity Company could you looking to buy. Know, according to those people, that they are examining a bit. They are in talks with blackstone and tai partners. Not clear whether this will transfer to a did. Are is there money in biscuits . There certainly is. It was bought in 2006 for 1. 6 billion. They spun off kp snacks. It remains to be seen how much will be gotten for this company itself. You have chinese equity firms looking to buy established bands in developed markets. They certainly have a lot of cash to spend. Thank you very much. The latest on united biscuits. Radart else is on our this morning . The world bank has raised its Global Growth forecast. A doubling compared to 2012. A lender has predicted the World Economy will grow by 3. 2 this year. The airbus group chief he is in officer says merger talks for the companys space unit. He said he would also contemplate taking control of the missile business. This comes following a combination of the space and defense units that led to the loss of 5800 jobs. What else is on our radar . Mary berra heads to the corner office. She officially takes over as General Motors ceo. The company declared a dividend for the First Time Since 2008. Gm made another big announcement. It appointed Chuck Stephens as its new chief Financial Officer. Backming up, we will head to paris to talk to a french mp about president along policy somises president hollande policy promises. Do they go far enough to save the economy . That is next. And revved your engine. We are speaking to the man at the helm of the Red Bull Racing team. They dominated formula one for the last four years. What is the strategy for staying on top of the sport that is changing so much this year . Welcome back to the pulse. We are live on bloomberg tv, radio, and streaming on your tablet, your phone, and any windows as any Windows Phone as well. Francois hollande managed to deflect questions about his personal life in his News Conference yesterday. His focus was on how to fix the french economy. Was he bold enough . For Caroline Hyde is in paris with more. Off westons fend about his personal life. Questions about his personal life. A member ofk with the socialist party. She is also Vice President of the finance the mission. Thank you for joining us this morning. Are you worried about how much issues to do with his private president istracting hollande from setting the agenda in france . In france, we are protecting the private life. That has always been the case. , this is a principle on have greath intentions. I do not think he will be distracted by what has happened today in his private life. He has direction. Our main need for economic issues. Rather than private life. You do not think it is eroding his credibility among the french electorate . Look, we seeve a that the french do not care. Maybe it is the french spirit. I do not know. Private life is private life, even for president hollande. It is a painful time for him, as he says. He is trying to have this new agenda within the community. What did he say that was new yesterday . He outlined 30 billion artie billion euros, cutting down payroll charges. Is that enough to start spurring innovation . After the decrease, france would be the average in europe, comparing taxes and wages. There is no issue regarding the bet that france could business friendly. France is business friendly, definitely. There is a ranking showing that france is the number two for of worldwide3 innovation. The European Commission has been calling for cuts to labor charges for a long time. Many have said you are falling behind spain and ireland in terms of labor reform. Why has it taken Francois Hollande so long . We need to tank we need to take into account everything. 365 billionith euros. Decrease,30 billion france will be the european average. In terms of business spending what about the reigning in of the welfare state . You are a socialist and Francois Hollande is a socialist resident. It is all about big state. Now he is going to cut the amount of money. It is big state, for sure. What we need to look at is who is paying at the end of the day. Than 50 of more their gdp. In france, it is 11 . It is less. We need to take into account all and not only look at who is paying for it. 50 billion euros will be reined back out of spending. Where are those spending cuts going to come . He mentioned the Healthcare System yesterday. It cannot all come from health care. To assure them what would be the place of states in our life. We need to start with us. Expensive without thinking about what could be the mission, the goals we need to reach. Definitely. Is three years long enough . We have already started. In 2013. D this year, there will be 15 billion euros. It is not new. It is just a reaffirmation of the direction. The Business World came out today and said that we like these points, we want 30 billion euros cut for labor charges. They never want to pay. 100 billion. I think he would rather explain the innovation, his view on the new businesses france could have and be the leader on. And the new jobs being unveiled, 50,000 new jobs for the youth in 2014, where are they going to be . What industries . Have on the technical side, engineers, lack of people taking these jobs. We need to put effort in that, i think. Wonderful speaking to you. Member of parliament and the socialist party. The Vice President of the finance commission outlining that she feels that france is in the top tier of innovation and they are on a level Playing Field when it comes to labor charges. Back to you. Thank you so much. Caroline hyde with the latest from paris. Watching that story very carefully. More company news for you now. Charter communications will start meetings with Time Warner Cable shareholders to convince them of a 61 billion takeover bid. Time warner rejected the officer , calling it inadequate. Amazon technicians in the state of delaware vote on whether to become their first u. S. Union. It is just a handful of employees. The decision could mark a big change for a company that has battled Union Efforts for years. Paschis chief executive officer will remain at the bank. That is after a conflict over the biggest with the biggest shareholder over the timing of a rights officer offer. He wants to avert the risk of nationalization. Coming up, one group says there is proof that cars are not the only way to get around motor city. Details of that next. Welcome back. Time for hotshots. Night at the ice climbing competition in colorado. They navigated a challenging route of ice and rock. It looks treacherous. The other show is not the only the auto show is not the only thing happening in detroit. A group of skiers have found another use for abandoned buildings. They have constructed their own ski jumps and ramps in defunct warehouses. On how hot are the markets this morning . Manus cranny will find out. You just sort of grapple with this. Quantitative easing, we are in taper mode. You have growth coming off the ground according to the world bank. Bestean equities of the buying opportunity and will give you the best bang for your buck over the next five years according to a former investment manager. He knows a thing or two in terms of return. Thestoxx 600 is up for fourth straight day. It is all about the dollar. To fischer had to explain his audience what beer goggles were. The two people who advocate reducing quantitative easing but making the argument very clearly reduction in quantitative easing but keeping rates lower for much longer. Strong thesee how Federal Reserve is. Manus cranny on the markets. Up next, where airplane seats go to be reborn. We take you inside the company with a secret for saving tens of thousands of seats for the skies. Welcome back to the pulse live from bloombergs European Headquarters here in london. Im francine lacqua. Here are bloombergs top headlines. Several former barclays traders are set to be facing libor nterviews. It is part of a global investigation into rate rigging. We also have the latest Growth Numbers from germany. The economy expanded less than forecast last year. Economists forecast growth of. 5 . The world bank has raised its Global Growth forecast. It is predicting the World Economy will grow 3. 2 this year compared with a june prediction of 3 . But the upgrade comes with a warning. Developing markets remain vulnerable to tapering in the u. S. Manus cranny joins with us the latest. Basically they are saying everything is fine as long as there is cheap money there. And as long as there is a nice smooth exit from quantitative easing and tapering goes in a lovely, lovely line. It has gone smoothly so far. All right . Volatility. A little bit of an issue. Look, to put this whole thing in context, we were going to grow at a basis almost at double what the world grew in 2012. Put that into con test. Easing austerity. Context. These are things that are contributing. The richest nation also grow. They are going to provide, you know, a real boost for that growth. That is the critical issue so long as tapering goes smooth accomplishment this is basically what is amazing when you look at the breakdown, europe is doing well. They are kind of like leading the pack but that is why they uped their forecast. When you look at the numbers. Europe up 1. 1 . Frup just under 1 . It is the essence of what they spafmente germany will propel that recovery. Spain and italy will do better. I love what they say about where europe is. Europe is where the United States of america was a year and a half ago. A little bit hesitant. A little bit unsure. Sounds like me on friday night. A little bit hesitant and unsure. A push in the right direction, ill be there. Japan is not going to go more robustly than thought. Neither is the United States of america. They questioned the momentum of the japanese story without the reform. I think when you look into it, hina is set to is it . A lot of people say for the next couple of years, it is going to be a little bit wobbley before they find their feet again. They are saying 7. 7 . They downgrade. Brazil is going to slow down. India and turkey. Money, 64 billion was pulled out of emerging markets over the summer last year. That is the key. Are they concerned because of q. E. Unwinding it may repeat itself . That is the heightened sense of risk. There are those not in a defensive