We are live from bloombergs European Headquarters in london. I am guy johnson. Francine lacqua is off today, back tomorrow. Within the last hour, we have learned that the ukraines Prime Minister has resigned. He is stepping down to help ring protests the street that have paralyzed the country. Lets get the latest from Ryan Chilcote. Emergencyainian session began just a let just a little less than an hour ago. We got this surprise offer of resignation from the prime , who says he wants to try to encourage some kind of peace and reconciliation in ukraine. Immediately after we got that announcement, the broadcast signal for the Ukrainian Parliament was cut. Many questions remain. For example, will he remain in the job as the acting Prime Minister . If his resignation request is not excepted. What if no one takes the job or agrees to fill in for him . Over the weekend, we heard the ukrainian president , that is who many of the protesters would like to see resigned, say that he is prepared to sacrifice his Prime Minister and he offered the job to one of the Opposition Leaders. However, the Opposition Leader declined his offer. Interestinge an situation where we have an acting Prime Minister. In any case, all eyes on parliament, where those discussions are underway. Undoubtedly he did while hundreds of people remain out and tens of thousands more people could show up just as soon as they want to. Those outction from on the streets to the news of the resignation . Is this being greeted as an further talks . The protesters have had a very large laundry list of complaints and demands. One of them has been the resignation of the Prime Minister and his government. The primeg to see, if minister does go, will the larger, wider government go as well . They have also demanded the resignation of the president. That is where the power is in ukraine ever since the president change the constitution. And they would like early president ial elections currently scheduled for early 2015, not early enough for most of the protesters. It is too early to say if this will be enough to dissuade any of the protesters from going out on the streets. As we have seen, some of the more militant aspects of them attacking government build government buildings and seizing them. Ryan will stay on top of the story, monitoring what is taking place in the Ukraine Parliament and he will bring us any developments in that story. Lets get to our top stories of the day. Apple reported iphone sales missed estimates for what is typically the most lucrative period for the company. The disappointment is hitting European Tech stocks. Jonathan ferro has more. Report does a Company Record sales and the shares drop off . About the outlook as well. Look at the iphone sales, came in at 61 million. Expecting 65 million. It is all about the outlook. Analysts expecting some big things and they come out with the first quarterly decline in revenue since 2003. You can see this reflected in their market share. One billion smartphone shipments, yet apple sees their market share get smaller. We have now heard it from of thethe toop end market. It is beginning to suffer. That points towards margin compression. Yes. And where are we seeing the trend . It is in the low cost phones, where apple just do not feature at the moment. On the other side of this, you have the lack of innovation. You have not entered a new product category since 2010. They have not entered a new product category since steve jobs departed this company. At is a big question hanging over this company. Where is the innovation coming from . A lot of people are looking for things to happen, but they are not happening right now. The fact that r d is now at levels we last saw prior to them putting the ipad out there. This is the little else of optimism. Do we get something out of the other side of this . We have been talking about mobile pay. Tim cook says this is something that intrigues him. Was built with a screen potentially for that. We could see something huge. 400 million registered credit cards on the itunes platform. Whether they can leverage that remains to be seen. It is something that investors continue to question and you can see that reflected in the stock after hours. We saw a big fall. Thank you very much. The latest from apple. More earnings from the tech sector this week and we will continue to bring them to you. Siemens reporting Quarterly Results this morning in the first full quarter of the new ceo. Hans nichols is in berlin with all of the details. How did he do . How did they do . They did all right. These are mixed results. You can see that reflected in the stock. Orders are up some nine percent. Revenues down three percent. We have gone and sifted through the numbers. The strong euro eating into some of their orders. The infrastructure unit doubled revenue. That is doing better. Perhaps the most interesting is the fact that they are delisting from the new york stock exchange. This could be joe kasers first empowering his workers. He is talking about trying to increase shareholders among employees. Of course, some five percent of their shares were traded on new york, so it is not a massive shift. It does seem to be bringing the moreny back and have a employeeled focus. As they try to become more profitable, 10 is what they are at this year and the old goal was 12 . It seems like this is an employeeled move and we will he whether it can withstand these other challenges, including a strong euro. It seems like they are on the right path. 12y have delivered 4 of 16, more to deliver and we will try to get a ride on one of those locomotives. That sounds like a cool assignment. Thank you very much indeed. U. K. Gdp figures for 2013 are breaking this hour. Questions remain about the sustainability of that growth. Lets find out more with manus cranny. How solid is this recovery going to be . The view that is coming through from the notes i am reading, you will see a bit of volatility in the construction number. Industrial production stalled slightly in november. By and large, things are looking ok. This will be the first full year of robust growth postcrisis. They have upgraded the growth of you there. From legalul quote and general group. Ande is a natural momentum a selfreinforcing cycle that creates a comeback. Me, francine lacqua, everyone in this newsroom, do you feel more confident about investing, about spending . If that feelgood factor of our wages at least keep pace, we may talk about a reasonablysustained recovery. The question for hammer and osborne, is it be on the year 2025 . Is it outwardly growing momentum . That is the critical point in this argument. Mark carney, we will find out from his point of view how he sees things north of the border. This is talking about where we see the right cycle going the rate cycle going. Carney has made it clear that rates will remain low for some time. If you look at the inflation numbers, he might have a point. Ofhis project at the bank england, there is the iconic image of the very first meeting, the very first days work of mark carney at the bank of england last year. As you say, he is trying to push this subject between unemployment, which was a knockout for him, and beginning to look at rates again. Three big calls, have a look at this. Citi says that the job growth is rich and they go for a rate hike in the Fourth Quarter of this year. They are putting that back to the Second Quarter of 2015. Paribas, lets have a look at the three big names. They are calling it the end of the affair. About gradualng tightening in 2015. They do not see the momentum for the tightening this year. Of course, sterling is on a tear. Could impact the overall trajectory of the export story in the united kingdom. Back to you. Thank you very much indeed. Market putting out a note that the pmi reports are pointing to broadbased recovery in the u. K. Thank you very much indeed. What else is on our radar . Rbs is on track for its biggest pretax loss since 2008. The largest governmentowned lender set aside 3. 5 billion pounds more for legal compensation claims. The bank says much of the andisions are for lawsuits the sale of mortgagebacked securities. In talks with several states to build advanced manufacturing facilities. Foxconn is the maker of apples iphones and is planning to set up factories closer. From surprise rate hike the bank of india. It raised its benchmark rate. Economistsof 45 surveyed were predicting an increase. Talking of governors, we are about to talk to a former Central Bank Governor of argentina about the threat inflation now poses to the emerging markets. He joins us next. Good morning, everybody. Welcome back. You are watching the pulse. Economy is not the only emergingmarket economy with an inflation problem. Argentina, the price of goods is shooting up after the government let the peso plunged. Joins us now, a man with some experience of this situation, the former governor of argentina central bank. Good morning to you. Good morning. Lets start with argentina and we will broaden our way out. Your thoughts on the policy shift that we have seen over the last few days from the government, are they missing something . Have inflatione increasingly embedded into the economy. Have done the easy bit, devaluing the currency, and the hard part is dealing with the implications of that. I think it has tipped in the right direction. Comprehensiveis a and Creative Program that will affect inflation, reduce the panic that has been created in the market, that will create that they are willing to tackle the problem. It could be counterproductive if they do not come together with a comprehensive program to tackle the deficit, the monetization, you need higher interest rates. Comprehensive and understandable to the public. The political situation is incredibly difficult in the country. Are those who are controlling the levers of power capable of making that next step . Is, the question is how the political environment will develop. Are willing to pay a price for civilization. There is no free lunch. You need to stabilize the price and reduce inflation, reduce the deficit. You have to make good decisions. I do not see the government taking these. How much time do they have . They have reserves. They are being squeezed. Time the cousin it is the summer there. There is time to put this thing together. But not too much time. Because anytime there could be a run on the currency. I do not think there would be a run on the banks, but a run on the currency. Lets broaden out and talk about other emerging markets. Youd have just come back from davos and your sense is that the elite had a grip on what was happening here. How serious are threats to some of these emerging markets . , but i thinkreat it is modified a little bit. Something, it is not that suddenly there is capital outflow from emerging markets. From whenrrection liquidity was so plenty in the world. Cleaner. Like a vacuum the vacuum cleaner was functioning on the other side. Resourcesity and the without this, all types of emerging markets were absorbing huge amount of liquidity from the rest of the world. Now it is being reversed. If the right policies are put in policylike interestrate and some constraint on fiscal expenditure, that is the next thing that the emerging markets will cope with. Has already put through a series of rate hikes with more to come. Turkey, a Central Bank Meeting tonight. I bet we will see fairly aggressive rate hikes coming through. India, because of this policy , has avoided part of this problem. Plungedency has not like other countries. These problems are being composed also by the fact that there are political issues in emerging markets like ukraine. If the right policies are put in place, the emerging markets can cope with it well. You mentioned raising rates. What else needs to be done . Definitely raising rates is important and it is taking place. The currencies will appreciate from the inflow. Avoiding creating too much domestic liquidity, this is part of the package. Particularly the large emerging markets that are working in that direction and putting these policies in place. I would not worry so much. More sensible are and sensitive. Who is the most at risk . The payment imbalances, the account deficits. So turkey they need the capital inflow. To finance it. , emerging markets have suffered from this crisis in the sense that you have to discriminate more now. Emerging markets are not the same as they were before. We are going to leave it there. It has been great to see you. Thank you for your time. Blejer, the former argentinian Central Bank Governor. Coming up, we will look at the radical design that is gathering the most buzz right now. Will they make it onto the production line . And president obama will deliver his state of the union tonight. We will bring it to you live here on Bloomberg Television. Good morning, everybody. Welcome back. You are watching the pulse. Lets find out how markets are trading this morning. Manus cranny is trading by. The biggest selloff over the in seven months. The cost of protecting yourself is falling today. And the turks had a special meeting this evening in terms of defending their currency. We are seeing a bounce in the emerging market currencies. Here is the euro against the turkish lira. What will the turks do . What will the fed do . Will he go for another 10 billion in perpetuity over the next six meetings . This is an upward movement for the lira. In terms of our growth level in the united kingdom, cable likes it. Of eight out of the states today. Confidence numbers, futures trading higher. You are going to get durable goods, Consumer Confidence. There is a traitor out there that is betting 18 million that volatility has topped out. Back to you. Thank you very much indeed. Towards thatr way u. K. Gdp number out in a few minutes time. Housing tothe the recovery so far has been the housing market. Chiefxt guest is the economist at the Royal Institution of chartered surveyors. Give me the broadbased picture that you guys are seeing. We think about the institution as the housing market. You guys see what is happening in office space, the construction sector, what is the big picture . I think the. 7 number is about right. The indicators that we are seeing across the sector, housing, construction, real estate in general, commercial property, all turning a little bit more positive. This morning, our commercial Property Survey came out and what we found is that there is increased appetite to take up space across the board. It is not just in certain parts of the country. We are seeing more interest in office space around the u. K. More interest in industrial space around the u. K. Area, whichretail has been troubled for a number of years now. Is this broadbased . There are indications that the recovery is broadening out. Inevitably, there will be questions about how sustainable a recovery and domestic issues that could curb some of the improvements we are seeing in sentiment that will be driving the hard labor. There are some signs. We will be back in a moment with you want that number comes down. Chief economist at the Royal Institution of chartered surveyors. The u. K. Gdp number is breaking in three minutes time. We will break we will bring it to you after this break he after this break. Welcome back. Youre watching the pulse live from bloombergs European Headquarters. Im guy johnson. Francine lacqua off today. She will be back tomorrow. A little bit of a slowdown in the Construction Center is what seems to be driving the g. D. P. Let me show you whats happening with the pound dipping on the back of this umber. 1. 6577. Maybe this will help out mark carney. We have unwound the bulk of the gains made already on the pound greenback rate. Lets get a reaction from sychon rubenson. Construction dragging the number from. 8 to. 7. We have had two strong quarters in construction. It could be y of revised back in line with expectations. We have had two strong quarters. They are volatile. The outlook for 2014 our only indicators are sending out a positive message. Look at the aggregate number. What is it going to look like for 2014 . 4 . Housing, 9 , 10 kt. It is not just housing. Were looking at infrastructure. The Public Sector is going to e lagging. Inflation is well behaved at the moment. What do you think the right response from the Monetary Policy authorities . We only have to look at the rends. Why would you be looking to tighten policy given that the headline inflation number is now around the 2 target and probably heading south of that. One of the things were noticing is a bit of a shortage of skilled labor. It will be interesting twrozz that fits into higher wages. If you have nearly double digit growth, that has to lead to punchy wage settlements from the big firms. A lot of laborors left the market. I think it will slowly come back. One of the interesting issues is one of the key areas were seeing shortages in bricklayers. In the last cycle, i think a lot of migration helped to fill that gap with a change in government policy and will it be an impediment . Your sense that is to feed through yet. Our indications are overall costs for most Constructions Companies are under control. The risk for this rosy picture youre paint arrange what . The domestic risks linked to surprises on the inflation side. Are the bisks downside or upside of that . Term, downside. Im more worried about the global picture. The turmoil in the markets. India raising rates today. Uncertainty about turkey. China slowdown. These factors, this global picture presents the biggest risk, both the u. S. And u. K. Central banks. Nice to see you. Thank you for stopping by and analyzing the numbers. The chief economist of the royal chartered survavers. Surveyors. Britain and the rest of europe egaining appetite for ikea furniture. Jonathan ferro is an expert at constructing it. Lets see how he does with the numbers. If you want to pop in profit, then you want more people to move homes. Were seeing mortgage approvals climb back to precrisis highs. Ike