European headquarters in london. , renzi to the up rescue as italys new Prime Minister tries to form a government. Hospitalityaltitude. We will show you the hotel that is pushing the limits of good service right up there in the swiss else. Alps. You a lets bring bloomberg exclusive. We have been speaking with bank of england policymaker david miles. They should not be tightened because there is so much Spare Capacity in the u. K. Economy. To my mind, there are clear signs that there is slack in the labor market. First, although unemployment has come down fairly sharply, it almost certainly remains above the level consistent with our hedging inflation targets. Flak there. Egree of runemains above the long equilibrium rate. About britains property markets. He says the bank of england is doing enough to stop a housing bubble. The situation we are in at the moment is the Financial Policy Committee, as a firstline line of defense, against the risk as the Housing Market starts to generally overheat. If you did get into a situation where the tools of the Financial Policy Committee had seemed not up to the job of stopping the Housing Market, we would turn to the instrument of using the bankrate. We are a long way from that. But the mpc has confidence in those tools at the moment. There is no reason to doubt them. There is a range of tools that they have. It seems to me that some of those tools would be powerful and effective at pushing the lid on overheating if it cropped up. Have, as a last line of defense, the blunt instrument, the big stick for the interest rate. So the bank of england does not sound concerned about the property market. It is a great interview. Did you get a sense that he is not worried about a lot of foreign buyers . If you strip out what is happening in central london, he is much more relaxed about what is happening in the wider Housing Market. The trend is now improving. We are still not back to where we were before the financial train wreck, as he describes it. Therefore, there is still a significant journey that we need to go on before we get to that level. He is sounding more dovish than i have heard him sound for quite some time. Capacity there is in the british economy, he really sounds of this. A lot of economists saying we have not ever focused on the outlook. It is a fairly nebulous concept. Great exclusive interview, more with david miles later in the program. Germanys central bank is a little more worried about what is happening in the south in the housing sector. It thinks properties are overvalued by up to 25 . Itinterest rates remain low, says there are risks emerging of a real estate bubble. That is a different conversation. The boj maintain the face of its bond buying program. To tell us what it means for the markets, here is jonathan ferro. Overnight session, the dollaryen higher, the nikkei higher as well. It is more about the symbolism of this world of this move. Who are they going to lend to because companies are already sitting on record cash piles and record deposits . They do not need this money anyway, that is one way of looking at it. Here we are. We are the bank of japan. We are ready and determined to do more. The expectations for the bank of japan, 25 out of 34 economists say there will be more easing by september. Huge. Mini squeeze. The boj and the Chinese Central Bank are concerned about credit and the funding and china. They are trying to do something about it. Some really punchy figures for credit in the month of january. A lot of people say this is seasonal. This is well above what a lot of people forecasted. If you think lending is too cheap, you have to do something about it. You just saw the moving chinese stocks on the back of that. Big concern for a lot of people outside of china. The leave me. It it ash believe me believe me. It is a concern for everyone. A 25 billion agreement could be announced as early as today. Lets get the details on the deal. Ryan chilcote joins us with more. This is an extremely activist company. Before last, it acquired a Swiss Pharmaceutical Company that was called Watson Pharmaceuticals. Of deals, not including this one, which may be announced today stateside if the deal does not fall apart before then. Valuing thee company at as much as 25 billion. Forest labs closed on friday, the last day of trading in the United States, 19. 3 billion. This would be a healthy 25 or north of 25 premium. That would make carl icahn very happy. He has an 11 stake. He got a seat on the board in 2012. Shareholders say he does not think forest can go it alone and that the Company Needs larger scare larger scale. He stands to make half 1 billion. Even though he is worth 22 billion, it is not chump change. F the deal does happen the ceo of the combined company would be the ceo of the acquired company, and you do not see all the time. That is brent saunders. He got into the ceo job at forest thanks to help from carl icahn, who is very fearful that there could be that the preceding ceo may pass on the reins to his own son. That was a big issue for carl icahn. Bush before been at that. He led some acquisitions of his own. You look at the pharmaceutical injury industry, it is all about scale. Everyone thinks you have to have more of it. There is an issue with Companies Developing new drugs, getting the pipeline going through their own research and development. It is the fastest way. A lot of Companies Say you do that, go out there and buy them. Thank you so much. Ryan chilcote with the latest on the possible deal with activists with actavis. In europe, car sales continue to recover after a sixyear slump. January sales rose more than five percent. That is the fifth straight month of gains. Lets find out what is driving it. Hans nichols joins us from berlin. Walk us through the numbers. Engine . Is revving the is an increase. It was 13 last month, so it is slowing a little bit. To get a sense of how far down they are, as is the Second Lowest january on record since 2003. They sold just under one million cars. Fluctuations month to month, but that puts you annually at around 12 million, which is much lower than they were at tree crisis highs. Crisis highs. If you are looking for good numbers across the major economies, the u. K. , seven. 6 . Spain, seven point six percent. Germany, 7. 2 . Italy in the 3 range. Even france had an increase. In spain, some of that is being driven by cash for clunkers. In about what happens when spain withdraws that stimulus, if you still see auto sales in positive territory. Doign peugeot doing . They had a great month. Renault was up 13 . Daimler had perhaps the worst month. Gm was also down, but they are in a separate situation. Toyota, the leader, 15. 4 . Of course, later today, the peugeot pew joe of will be meeting. Will they accept they cash . Nfusion from dongfang it looks like they will and they will have a lease on life to maybe fight another year. Much. Nk you so hans nichols with the latest news for carmakers. Just finding out what else is on our radar this morning, cadillac will sell shares in a london ipo. Credit suisse and jpmorgan are the joint book runners. Intercontinental profit jumped after the Company Expanded in the americas. Benefiting from growing demand for accommodations in the region. As we look at the u. S. , we saw good growth in 2013. Good signings, a lot of activity , an uptick in expectations to travel and you look at the data, which we survey regularly, of our guests, people are more likely to travel in 2014 than 2013. Overall, a lot of noise around the debt ceiling or anything else that can happen on confidence, which impact our business. Other than that, i think we are seeing momentum. Of ukraines government are marching on parliament today. Jeopardizing compromises that recently eased tensions last week. Coming up, the pressure is on italys incoming Prime Minister. Matteo renzi faces the crucial task of gallery allies to form a government of gathering allies to form a government. Candy isoming up, nick in that house. We will speak to the multimillionaire robert e designer about the outlook for the luxury Housing Market. Welcome back. You are watching the pulse. Matteo renzi meets with party meters today. Party leaders today. For more on what is next for italy, lets welcome the chief renziive, a friend of mr. , and a contributor to his campaign in the past. Thank you for coming in. Inot of people are excited italy. They say this might be the right man, but the way he has gone about it is difficult to read is difficult. Do notcial is he that we see the same faces . Analysisk italy is an paralysis conundrum. Everyone is analyzing the problem and no one has done anything about it. The last three years, the nation 7, 8, 9 reforms. Letta was issued a mandate to go through these mo these reforms and not much has changed. At matteo, what is key is least the two key reforms. He gave himself an ambitious timetable. In the last 20 years, we had no reforms. I think that gives you an idea of setting a pace. And what needs to be done, ultimately, are not overly complex, but very difficult things to achieve. We need to take away the status quo that most of the lobby did not want to give up. Easiere going to find it working with people who are currently in the system . Berlusconi possibly or people who are real outsiders. Do we need a complete change to make this work . First of all, he is a total outsider when it comes down to what to do, how to do it, and the speed with which to do it. The best example is he took the leadership of the Number One Party in the country within four weeks and had a proposal for a new electoral. Seven years they were discussing about it. Proposals and execution that is the difference. A vote inposal needs parliament, but at least you can vote on something. Until now, they could not vote on anything. That gives you an idea of the change. 50 of what is needed is the ministers who are totally fresh, who have not been in politics, and 50 of people who know how to move the bureaucratic machine, which is one of the problems. The best way to tackle what i think is one of the key problems , you need a few of the best bureaucrats on your side. Otherwise, you run the risk of just going to war. You need accommodation. Is so political system complicated. They have tiny little factions which could be almost useless that you have to negotiate with. , matteo renzi is going to try to form a government in the next couple of days. They need to start with reforms next week. That will surprise people. As soon as you get to the trap of trying to negotiate politically with your adversaries, that is when you have a much tougher job. , firstink what you said of all, he has given himself a week to come up with a government. The timeline. It is an example of execution. She had a clear majority. She won the election, clear majority, Prime Minister. Here we have not had the election. Partynot have a single with a majority in the lower or upper houses. The country is giving itself a week. The sense of urgency is that. Most importantly, is there a sense of urgency . Yes. Secondly, the reform agenda is very compelling on paper. That you not issues can say, we need to deal with this issue. , do you want to put them on the agenda in parliament and ask for a vote . Do you want to run the risk of being voted down. Most politicians prefer to take the easy step. Nobody wants to go and face the lobby and take away the privileges. Is the finance minister the most crucial job . This is the guy or the woman who has to steer the economy. , thed a number of names former chief executive of telecom italia, who would you pick . I think who you need here is not just one person. I do not think the finance minister is not necessarily the key answer. In order to be effective, i think you need 1020 people between the economic minister and the finance minister and the ministers for Economic Development to work together. Not just a key star, you need 20 people. To tackle the remaining 200 of the bureaucratic machine with one man, you are done, no matter how good he is. Someone, i hope we pick with real world experience. Someone that can integrate and understand the problems of the real economy. Are you looking for a job . The answer is no. Are you part of that 20 . No. Candidate support a who did it is a conflict of interest of wanting to take a job. Fair enough. Years in england have taught me something. I am glad. [laughter] my asked my accent has improved much. It has happened in planning for quite some time relatively quickly. Do you think the people you are talking about, and there are around,ing bandied young people, that could potentially take up jobs . Now that it has become a reality , do you think all the people will go along with him . Is there enough momentum behind him to create the kind of cabinet that you are talking about . You, havingl followed my home country 20 years, never, my generation, your generation has been so close to politics. Secondly, i think it is somehow unifying rights the cothe issue is not whether you want to talk about communist or fascist, but to talk about today and tomorrow. The generation comes in. Third business is that matteo is pragmatic. Create more jobs and get more business . He is the mayor of florence. He has been negotiating to get the second four seasons in florence. No ceo in the world no city in the world will have 2 four seasons. It creates more jobs. Is it good for the city . I think that is very important and there will be enough people to get himself ready for the job. Discussed. S been i have no idea of the discussion. Think about how it would be done in england. This time, the same will happen in italy. Which is a surprise in itself. A refreshing surprise. Thank you so much for now. We are back in just a couple of minutes. Lets have a quick check on these markets. Equity markets declining. The way to look at it is squeezed from skis. The peoples bank of china squeezing the markets. First, the bank of japan is unsettling the equity markets ever so slightly. The Consumer Price index in the in the big shift currency markets, all 19 industries on the move today. Dollaryen breaking. When will it hit 110 . Some say by the end of the year. Thank you so much. Still to come, London Property gurus look these. Nick cannon he will be joining us. He and his brother are looking to take their brand global. Welcome back. You are watching the pulse. We are at 1. 9 . Is going to be interesting to see if the bank of england can raise rates. We have been speaking with bank of england policymakers and he told us that he is not worried about rising prices. Find that it looks like inflation whilst they close to the target, probably be a little bit beneath it. The slack in the economy will decline gradually. You can hear more from that we will be playing it later this hour. Want to know how much ad revenue a rival website makes . You have to guess or indulge in industrial espionage. There is a startup that means you can find information in a couple of seconds. Lets join Elliott Gotkine for more. They have never done any news media interviews before. They have been under the radar up until this second. I have the founder with me now. It is good to see you. Tell us how adimap works. Public . Ake information each party sees only their own metrics. , anyone sees everyones metrics. We have developed core capabilities. We similarly simulate real users and generate real ad targeting. We develop Technology Recognition and detection on any site. We track the trackers and we measured and recognized es on any site. Ads, andnd detect the recognizer attributes. Everyone wants to know what their rivals are up to. Are you going to be annoying some people and be a blessing for some others . I think were going to disrupt and change the marketplace. Were going to the large and small marketeers on the same playing field. It is meant for advertisers, publishers, analysts, buyers and sellers, and even decisionmakers in the company. Who were you competing with . There are several advertising and Business Tools out there. Companies measure technologies on any side. Others measure the general traffic and ranking. Arers show which ads running on any site and where they are running. It provides all of this data and information and provides the metrics which matter. The ceo and founder of adimap , thank you for joining me this morning. Thank you. Elliott gotkine, the latest from tel aviv. Designers behind the most expensive apartment complex. They are planning to take their brand global. Hyde park. The most expensive apartment block in one of the worlds most expensive cities. It is the brainchild of nick and christian candy. Fits quare meters sits on a prime quarter prime corner, bordering hyde park. Starting price is nearly 11 million, going up to well over 160 million. They plan to license their name for luxury residential apartments and are planning to look for international partners. That we are ined danger of becoming swamped by developments. As concerns are matched by prediction of price increases in the luxury home market of almost half this year. Up for our next conversation. Nick candy joins us in the studio. Good morning to you, nick. Thank you for coming to see us. London is unique in so many ways. A reserve currency around the world. You expand that story into other markets and the safe haven story that is london maybe does not apply. How are you going to work this expansion . There are other safe havens apart from london. Kong, london. G the cities have had massive growth. The problem they have had is governments trying to control the bubble. In this country, we have seen increased from one percent to seven percent. Prime residential is still growing. Most people say you have a 700 increase in any business, that would put the brakes on. They have at the same problem in singapore and hong kong. London will always do very well. Are we in a bubble . I thought the crisis would have topped out two years ago, but it continues to grow. The difference between 10 or 20 years ago is that 10 years ago, or 20 years ago, there were only a few people looking to buy. Buy everyone is looking to property in london. We have more rich individuals because the nation is getting richer. Theyre all chasing the same assets. That puts the pr