European headquarters here in london. And i am Francine Lacqua live from davos. We have a huge lineup of guests for you today. We will be speaking to Boris Johnson and Antony Jenkins, the mayor of london and the ceo of barclays. Then we will delve deeper into iran. We have some top ceos discussing iran and whether they want to do business there. I spoke to the nissan ceo. He said there is a lot of potential for the french carmakers to the big in iran. Need so much more investment that there is real potential for business deals and contracts here in davos. Is this what everybody is talking about at davos . You have an event taking place in the ukraine that is capturing the headlines as well. Rouhani seems to be the center of attention looking in. It is the first time we have an iranian president arriving in davos in a decade. I spent a lot of time trying to speak to him yesterday. I did have a couple of brief moments but he was backtoback meeting with the Prime Minister of the netherlands, ceos of Oil Companies now, he wouldnt really commit to what businesses he is focusing on but we know iran is open for business or at least that is what he wants the perception to be. ,hen you speak to carlos ghosn he says i would love to do business iran as long as the sanctions are lifted. I dont know what the political situation will be in 12 months. He is certainly trying to change the profile, isnt he . You havent seen this kind of event take place for quite some time. A very different approach being taken. Looking forward to it. This is going to be a great show. Great guests coming up. And hans nichols did a little bit of james bond. Teaching people how to drive on icy roads. Lets bring our International James Bond correspondent, hans nichols. Focusing on iran first of all, the speech from the iranian president is what we have all been waiting for. For. Have all been waiting it is clearly a challenge for him to speak to these different audiences. Whatever he is saying to Business Executives here privately, he had a meeting over here at the continental just over my shoulder moments ago, he has to make that jive with whatever he is going to tell the conference later today. That will be this and to by the hardliners in iran and he also needs to worry about what is happening inside the United States congress. This is just a temporary lifting of the sanctions. We are talking about a sixmonth window and none of these companies he is talking to want a sixmonth investment. They want a longterm investment. They want to develop oil and gas fields. We had the interview yesterday with the ceo speaking about going back inside of iran. Just moments ago, one of our producers asked rouhani what his message was to businesses, what his argument was. He just smiled and walked on. We will have to wait and see when he addresses the congress. I just had a great conversation with the ceo of Renault Nissan and he reminded me that french carmakers were very big in iran. Want to go do business there. The market is potentially huge but he doesnt want to start negotiating before the sanctions are lifted. We must remember that it is not only the oil makers but infrastructure, carmakers, and consumer companies. You have a thriving middle class in iran that is sitting on a lot of money and they are going to start spending, theyre going to want to start spending. When you think of the potential lifting of sanctions and what the iranian middle class would spend money on, you see corporations salivating. Companies like reynolds, 1 reynolds renault do a lot of assembly locally. They could scale up pretty quickly inside iran. Thank you so much. Hans nichols there. It is day to of the World Economic forum here in davos. The event has brought together nearly 300 political leaders from around the world. We are pleased to welcome london mayor and conservative Party Politician rs johnson. Great to have you on the program. Always good to be here in davos. Do you do business here . You do a lot of business. Every time i come here i find some idea or some opportunity that crops up. If i look back over the last four or five years, there are maybe almost 100 Million Pounds worth of sponsorship or investment that we have managed to attract just in davos alone. And this is from Foreign Companies . It will be from all sorts of people. London is a got in situation where huge sums of money are coming into the city. We have had a very big success. London is seeing huge increases in Property Values because of International Asset classes of london property. That is a great strength for us. It means that we have to build hundreds of thousands more homes to help londoners built capital. We have had a lot of billionaires on the program. Hadi always ask them if you 100 million of your personal money, where would you want to invest question mark they say real estate. Is that the question you get asked the most . Huge sums being put into real estate in london. That is good if it drives the creation of new homes from londoners. New bonds, new family homes, fantastic. What is important is to show these investors where they can put their money. We have 33 random aside, these incredible opportunities for development. What is the question people want . When you come to davos, you meet with delegates, participants, ceos. What is the first thing they asked you . What is your biggest problem . What is your biggest problem . We are selling it. We are building huge numbers of affordable homes. That is a big issue for a city like london. We are facing the problems of global success. That is what i got an olympic developing andre having very interesting decisions here in davos about that as well. Because it is changing it is moving to the east. You see all this tech business happening now. Which we cover a lot of the program. You are quite right to do so. Thatn is sort of all trendy activity is moving to the city. The londoners are getting younger. You know that. Londoners isge of now 35. That is down two years from when i was elected. The population is going up. Much that is why i am here. Mayor, thank you very much. We will get back to you in just a couple of minutes. That was of course the london mayor, Boris Johnson furious Boris Johnson. Now we know the question he gets asked the most. My haircut. [laughter] i wanted an answer to that next. That is the question we now need the answer to. I am interested in hearing him talk about london moving in. Francine, looking forward to the conversation already. Take two with boris coming up very shortly. In the last few minutes, we have had breaking news from lenovo, the largest easy vendor is going to buy ibms x86 server business. Lets get the details of that deal. Jonathan ferro has been running through the numbers. Is how muchion lenovo is going to pay, a mix of cash and stock. This is the lower end of the talks they supposedly have last may. That is an interesting point. I think it is worth discussing what is in it for lenovo and what is in it for ibm. Pretty clear what is in it for lenovo. They have bought the pc business , they are just cherry picking parts of ibm. You saw a six percent pop in sales last year in the last quarter. They are doing very well. The idea is onward synergy. So the pcs to corporate, offer them the server business as well. Staying perhaps it is with software and services. What does ibm now do with that cash . That could be interesting. Less cash than they may be thought they were going to get. Maybe it highlights the fact of how keen they are to get out of this sector. They dont want to be part of the Hardware Service anymore. They are out of this lowmargin business. The other big question mark over this deal is concerns over national security. Once more a Chinese Company moving in and buying parts of a u. S. Company. We dont know how smooth this one is going to run. Thanks very much indeed. Jon ferro on the latest news out of lenovo and ibm. What else is on our radar . Chinese manufacturing may contract for the first time in six months. That is adding to stress in the worlds secondbiggest economy. The purchasing Managers Index fell to 49. 6. That missed analyst estimates indicating contraction. We will wait for the official number. Frigid temperatures are set to reach the u. S. South, parts of texas and louisiana may receive snow and freezing rain. That as an arctic air blanket that we have seen in the northern part of the country pushes south. The region will remain in a deep freeze. Says activist investor carl icahn has proposed splitting off ebays paypal unit. Icahn is also nominating two of his employees to join the board. Shares of ebay rose following the enough and. Coming up, we are back in davos with Boris Johnson. He is sitting there chatting with francine, brushing that famous hair. We will find out where he gets it cut. He says that is the second most important question he gets asked. Back in a moment. Welcome back. The president of iran is giving a special address to davos right now. You looking at live pictures. Hassan rouhani is talking about his countrys place in the world in a panel with kyle strub. He wants to can this clouse schwab. He wants to convince Business Leaders that there are opportunities there. Lets welcome back our special guest, london mayor Boris Johnson. Thanks so much for sticking around. It is pretty cold. It is fantastic, nice to be here. Everyone is optimistic. Are you optimistic . Obviously, Interest Rates will have to go up at some stage. We will see what happens when that happens. I am very optimistic about london. When i look at what is happening to the u. K. Economy, its got huge Forward Momentum now. We have got to build on that. Do people ask you whether there is a chance the u. K. Will leave the eu . If they do, they are worried about that. They say, what is the plan . Have areally we want to renegotiation. We think there is a better deal to be done. We think europe as a whole needs reform. It is a great zone of stagnation or has been largely because of the euro. Look what is happening when france. Is not fantastic. The supplyside in europe has been grossly neglected. Why not have a different approach . I think David Cameron is ideally waste to lead that. Placed to lead that. What happens to london if you leave the eu . I dont think that is likely to happen. Ways thehat in many stakes are lower on the eu than they were 20 or 30 years ago. In the sense that the European Union as a whole now accounts for much less of the Global Economy, it is not so vital to the prospects of the u. K. As it was. It is still vital, hugely important but not as important. Secondly, dont forget that people prophesies to that if we didnt join the euro than the whole city of london would crack and fall apart and gigantic mutant rats would call out of the sewers and not the faces of it was all going to be a disaster. That didnt happen. London remains the actual capital of europe and the world. I think that will continue to be the case. I am in favor of saying in the single market. I think that is the right thing. We have to come up with some new approach. They should join us. London or the u. K. . Some of the other that seems a little bit messy. I think it is vanishingly in probable that the british ,stablishment, the business they wont really want to leave, to relinquish british influence in europe. For our u. S. Viewers, you do have a great sense of humor. That needs to be put that needs to be said. I Say Something in a joking way that they will take seriously. Just saying, it is good but the dots on the eyes. A lot of people that travel through london heathrow, is there any chance that the commission will look at your airport in detail . They are looking at it and i wish they would adopt it. That is the obvious thing to do. When we began our conversation, we have a huge housing crisis and london. We need to build hundreds of thousands more homes. Is Heathrow Airport area about the size of the royal barrel of kensington and chelsea. You could put 2000 200,000 people there. You could put the airport east of the city where it should be so that aint planes wouldnt have to fly airplanes wouldnt have to fly over the middle of london. This wasnt discussed a couple of months ago. What are the chances of you going through . It hasnt been formally adopted but Howard Davies has said that he wants it to continue to be elaborated. They havent shut it. It hasnt been machinegunned in the water. Give me a figure. 25 chance . Ultimately, it will happen. Having exhausted all the alternatives, we will do the right thing. In the short term, the mediumterm, i am afraid we will try and experiment with various other sub Optimal Solutions such as trying to expand heathrow. We will come around eventually to the right idea. Good morning, welcome back. You are watching the pulse light on bloomberg tv. It has been an interesting trading session thus far. A few assets only on the move. Jonathan ferro joins us now from the touchscreen. In a word, busy. Have a look at this chart right here. This is the map of European Equity markets. What is leading a slower . Chinese manufacturing, a surprise contraction coming out of china. Not a good sign. Germany came out with manufacturing data just after. Not enough to lift these equities. Positive territory on the cac 40 in france but only just. And off to lift the euro. You see the euro popping through , 1. 36. One euro now buys you 1. 3635. Of unemployment data out spain this morning indicating how tough things are. 26 of the population are now unemployed. Forget borrowing costs, that is your economic reality. Plenty of moves and fx but have a look at these emergingmarket moves. The lira against the dollar, another record low. The euro up by 1. 5 against the turkish lira. The euro and the dollar absolutely spanking emerging markets right now. You see it coming back a little bit right now. Euro now buys you pre. 10 3. 1076. I will let you speculate. Nothing substantiated at the moment. Thank you very much indeed. John ferro running us through all the Market Action this morning. Lets turn our attention to the ukraine. Antigovernment protests have turned deadly. Police were granted new powers to disrupt demonstrators. The opposition says five people have died. We are joined on the phone by Bloomberg News reporter and kiev. The opposition has said it is now putting a deadline in place. Feelsl make clear that it that action is now required. Walk me through the next 24 hours. What is the set up here . Hi, the opposition yesterday and they hadident similar meetings in the days. Eading up to the latest crisis. Hey have another meeting today we are not sure what the deadline means exactly. Maintainingon is antiections and revoking protest laws. We are looking at some fairly dramatic pictures. How dramatic is the scene in the center of kiev . Actual drama is pretty much contained on a side street where the clashes have been going back and forth basically within a stretch of 200 or so meters. On the main streets and on the independent square itself, there is no real drama really. When i was there this morning, people were rather cheerful. Ok, thank you very much indeed. Welcome back to the pulse. Were live here in davos 2014. The iranian president has just taken the floor about 15 to 20 minutes ago here in davos. We have some breaking news from him. This is the first time in 10 years that an iranian president is showing up in dallas. E is trying to in davos he is trying to send some deals with the oil makers. He had a big meeting with them here in davos. He says the iranian economy has be a the potential to the has the potential to be among the worlds top 10. This is a very interesting point because it is a point that the rental nissan ceo said to me just a couple hours ago. He said french companies, french Car Companies have a very nice report with iran. They used to sell a lot of cars there. There is potential but he doesnt want to start negotiating until we have the Nuclear Agreement and sanctions are completely off the table. We will continue to watch that panel where president rouhani is talking and bring you any breaking news on that. Now do and it was a vendor before you, my colleague Erik Schatzker sat down with the chief executive of citigroup, the third biggest u. S. Bank. When you go back and look at rate transitions, they are never smooth. I think we actually go into this one probably a bit better than we have historically. Taperve to remember that is actually a taper, not tightening. It is removing what was put in. In some ways, that is excess liquidity in the system. We are just getting back to where we think we should be. There is a tremendous amount of confidence and i can feel it from you as well. In the fed possibility to manage this without creating a lot of market volatility. Why is there so much confidence . It is unprecedented, it is. I think when you look, you look at why we are beginning to taper. It is because as i described earlier, the world and the u. S. Is becoming a better place. If you are extracting that excess liquidity as the rest of the economy, with powerful engines coming behind it, it should create for a better transition. S International breath make these things more difficult because you have sizable operations and so Many Companies that are on the one hand adversely affected by the feds withdrawal of liquidity and on the other, still stuck at a different phase of quantitative easing in Monetary Policy in europe and japan . Growth, weook at will probably see 2. 6 growth in t