Also coming up on the program, amazon is taking on apple and samsung. Securing a spot. We are going to speak to the ceo of electrolux about whether we intelligent connected washing machines, dishwashers, etc. We begin with a bloomberg exclusive. Loreal is scooping up Beauty Brands around the world. The Worlds LargestMakeup Company is buying and labased at Cosmetics Company. The ceo tells us he sees more acquisitions after this deal. In an extremely rare interview, he sat down with caroline in paris. It is a fantastic brand. Brand. Professional it is the only brand like that. Has been a Great Success in luxury for many years. Equivalent in luxury, the brand urban decay. We are planning a huge success with this professional makeup brand. The size ofeal acquisition you are looking for . It is not that, it is just that we thought it was a great opportunity and we took it. At seizingty good brands that are still at the early stage of development and making them huge. Maybelline. Xamples, when we bought it, it was a 300 million and now it is 2 billion euros. When we bought it it was 30 million and this year it will be 600 million euros. This, we do pretty well. Taking a brand and being able to identify the strength and value of this brand, and then globalize it and make it very big. We think nyx will be also a very big brand. How long will it take to turn the body shop around . If your latest attempt fails, will you consider selling it . One of the reasons why maybe the bodye difficult, shop when we acquired it was already a big band. It is easier to take a small brand and make it a huge brand when it is a brand that is already big and you have to reinvent, refresh, renovate, it is always more difficult and takes more time. Take the body shop as a real challenge. Have not few years been proving very well, but there is a new team. There is a new strategy. Are we going to see more acquisitions in the rest of the year . We are, i would say, analyzing all opportunities every year. The simple reason is that when you want to, do sell, they contact us first. We see all opportunities. We are selective. We take only the ones that we think fit our strategy and are complementary to our portfolio, that have big potential. We are confident that we are going to find other opportunities this year or next year. This is the story of loreal. So it is pronounced nyx nicks. That doesnt sound like it is from l. A. It sounds like it is from the west bank. I thought you were going to say new york. I am not surprised that it is not on your radar. Caroline joins us now from paris. Great interview. Well done getting it. Very bullish sounding, saying this is just the beginning of several deals. How about the market in europe that has been difficult the past few years . Does it seem like the European Market has hit a bottle . Right. Is just because he is making this acquisition in the u. S. Doesnt mean that he doesnt plan to invest in europe in the near future. He has been very bullish in my interview last night. He said europe is back. He said that countries in Southern Europe could be a growth region. Entries like spain, italy, portugal or greece which have been very difficult for loreal in the past six years. In the First Quarter of 2014, for the first time in six years, loreal saw sales growth in these countries. They are pretty confident that the future. As for the global cosmetics market, the loreal ceo expects growth of 3. 5 to 4 . He expects that his company will exceed this market forecast. Eggs so much, caroline. You will hear more of our exclusive interview with the ceo of loreal later. Lets stay on the m a theme. We talked about the bidding war for alstom. Immelt arrives in france to make the last push for the energy assets. The european rules imply an open market in corporate ownership with one or two exceptions which we all apply to. Shouldntic in france detract from the underlying reality that we have in the u. K. That is not to say that there are not instances you mentioned alstom in france. That is one. We have had this issue in the u. K. Where we have been concerned about the impact of a pfizer takeover of astrazeneca. The way we dealt with it is by engaging with the company, pfizer, to secure longterm commitments to the r d base in the event they have gone away. Clearly, there was a interest. We endeavored to engage within the rules. The french are operating on the same rules as we are. That was the u. K. Business secretary. He described an impressive character, which i thought was interesting. Many people describe him as plenty of things. We will hear more of little bit later on. Back to our top story, the Market Reaction after the Federal Reserve trimmed its Bond Buying Program by 10 billion, staying on course with the taper irrigate the fifth straight cut taper. The fifth straight cut in a row. Manus cranny is here to walk us through the minutes. Clearly the markets liked what they heard but it seems they are more dovish than yellen. They are certainly more enthusiastic. If there was an equity trader out there, what you listened to. Ere the words, moderate pace you heard about lower rates for longer. Those are Janet Yellens words. The s p 500 traded through record highs. Lets have a look at the longer term chart. There is the s p 500. Look at the 10 year Government Bond yields. Revised down its Economic Forecast and investors bought bonds. There is the bottom line. The dollar went weaker. Risk assets went up. Things are improving. But the market heard was the same as last month. Things are moving at a moderate pace. This is the issue we talked about yesterday with the bank of england. Mind, the market is still moderately on an easy mode. First of all, the relationship between bonds and equities. You have a big reaction in equities and fx. That equity bond relationship is interesting. Pointedointed they to quite strong growth in the second half of the year. Growth deliver upon that , are we going to see the market having to reprice the fed being more aggressive . She said, everything is ok. We are going to continue on the path we are on at the moment but we are expecting strong secondhalf growth theory get to we need to reprice . The fed has already reprice that. I am not convinced they have priced it enough. 3. 5 for the next several quarters in order for us to hit the current trajectory. Predicated on the view that housing recovers, that you have a good economy which continues to strengthen. Fears of a more hawkish outcome, to a certain extent, this is what it is. Yesterday we looked at dollarsterling. Dropping below 1. 70. Why . I am being slightly facetious in that. Here we are, the reaction from the market is thus, fears of a more hawkish outcome. That is what happened yesterday with the bank of england. I think that is why the market has priced in the weight that it is. You got a much bigger reaction in equities. I am looking at the two messages coming out of this theory get we are expecting strong growth in the second half of the year. They did longerterm, cut their longerterm forecast. Lower growth. They raised their view in terms of the first rate hike. I hear 100 what you are saying but for me, the bottom line is they raise by 2015. They said in march rates would be 1 at the end of 2015. Now we are at 1. 13 and moving. They have downgraded their levels on growth. You downgrade the you talked yesterday about having this said carney moment. Are we going to have to go through a moment, september, october, where yellen has to go, i think you are miss pricing this a little bit. I am glad you brought up that point. This is the ability to communicate in a much more effective manner. My perception is, janet yellen said there is no mechanical formula for when rates will rise. She has moved on. She has not had a bernanke moment. I will tell you why. I am pretty sure mark carney neither had a bernanke moment nor was unsure how to communicate. He was clear how he was communicating. Forward guidance. When peoplepeople, go to Study Communications in years to come, those will be the three leaders they look at. And they are following her. Manus cranny, thank you so much. What else is on our radar . New typedeveloping a of flat panel display. It can be made into any shape. They are calling it freeform display and the Technology Reduces the size requirements for a screens outer edges, allowing nonrectangular designs. Sharp is expanding panel outputs in chinas growing market with this product. Amazon unveiled its first smartphone, the fire phone. The device has tied the online retailers other services to make it simpler for users to buy items from where else but amazon. 199phone will start at dollars and will go on sale in the u. S. On july 25. We have more on that story later. Parliament in spain has sworn in a new king. The new king will face a series of challenges as he attempts to restore the reputation of the monarchy. Interesting that it happened on the same night as spains lost in the world cup. Lorealon the exclusive ceo. We take a look into his shopping bag after the break. When someone asks, they contact us first. We see all opportunities. We are very selective. We take only the one that we think fits perfectly our strategy, that has a big potential. That we candent find other opportunities this year or next year. This is the story of loreal. The ceo of loreal speaking exclusively to us. His company is on course to spend more than 5 billion on acquisitions in the first half of this year. What else could loreal be i in . Lets ask the founder of the luxury brand agency. Good morning. Said, this is the story of loreal. They make these acquisitions and turn them into huge brands. Do you agree with him . I would agree that this is what loreal is very good at, taking something that is relatively successful or unknown and roll it out worldwide using their own marketing. They are not so good at inventing new things. Sense for them to because they probably cannot invent a brand like this by themselves. It will fit nicely into their portfolio. From theiroo far off dna and way of doing things. And it is very much like urban decay which they own. This is something i know a lot about. Can anybody stop loreal . It is a bit like the Technology Giants we see around us as well. And pharmaceutical companies. They are not good from zero to one but they are good from one to two. Is it a model that is that anybody can tackle . The only people who could stop are the consumers. This is a great business. This is a great business but it is a very tough and competitive business which does require a lot of resources to go from one to two. And there are big competitors. Estee lauder has the same business model. I cant think of brands they have natively developed on their own. Any thoughts on their other targets . I wouldnt want to speculate on this but i think anybody who has a successful brand that is to 10020 million million of turnover is a potential target. They get to choose, dont they . They can say, that one is going to be a winner, not that one. They are surveying a landscape and looking for something that is going to fit into their business model. Are i think what the ceo said about people coming to them first is quite true. It is like lvmh. Ibo come to them first because they know they have got the machine to take the brand somewhere else. Trying to take something into an emerging market that isnt already there. That is true. Wayably in a kind of wicked for the brand owners to the targeted, is probably a great sign of recognition that they have achieved so much that loreal is considering them. Can great brands that are coming up in a zero to one stage succeed without being part of a big conglomerate . I think they can. It just takes more time. What the big conglomerate rings to the table is the resources successfulto reach levels. It is almost giving them a way of speaking much louder. And they share the r d. Estee lauder will spend a lot of money to develop an ingredient to reduce wrinkles. They can then translate that into several different price points across their brands. What sector in the market do you think is hot right now . A decade ago it was the rise of celebrity makeup artists. Then there was the celebrity dermatologists. What is hot now . Is maybe not so well served right now is i wouldnt say ethical but not environmentally sound. We have emerging stories about the damage that is done by silicones that get thrown through the oceans. Brands will start to have Product Offering in that range, they will probably become very hot. Explain that to me again. Byproducts cosmetics and up being released into the waste system. Brands there are some emerging brands right now in the u. K. And italy that are starting to work biodegradable . More environmentally friendly. That is going to be much hotter in the future. Quickly, we heard mr. Agon say that the market in the europe is coming back. He is having some trouble in north america. Why is loreal struggling in the u. S. . There is probably i know this is going to sound cliche but there is a huge ultra difference between the u. S. And European Markets. Loreal has always had a love and hate relationship with the u. S. They have cultural problems. But they own maybelline. That is a very beloved american brand. Loreal takes something and makes it grow bigger. So maybelline was an american brand and has grown bigger, which is good for that market. To bring another brand into that market is going to be more difficult. The brand has to be adapted. The communication has to be a adapted. That is not something they are very good at. All right, thank you so much. See you in a couple of minutes. We are going to be talking about what is happening in todays business stories. We have some great ones coming up. Electrolux a big theme. Welcome back. Time for a quick look at the equity markets. If you are in doubt of what to do, according to janet yellen you look towards risk assets. European equity markets are rising. You are seeing the dollar decline. The currency is just coming back a little bit. According to the bloomberg index, we are at a onemonth low. China also making noise over the past 24 hours. They are committed to 7. 5 growth. They are committed to keeping that economy moving. We saw an uplift. Rio has a story in terms of moving coal around. Kingfisher, you saw Credit Suisse saying, do it yourself. The market only just beginning. I have yet to buy my tool belt. Rollsroyce rising. One billion pounds of shares to be bought. That is the state of play. Good morning, everybody. Welcome back. Youre watching the pulse. Actually what youre watching is live pictures coming from spain where king felipe is now doing the rounds, effectively, a guard of honor in madrid for him this morning. Interesting. It wasnt a coronation that we saw for him. It is the proclamation. A subjectle difference i suspect for royal watchers and very subtle difference for the rest of us. Nonetheless, we have a new king of spain. This is the first time we have seen the transfer of the royal family within spain. Quite a big shift. I wonder who were the the spanish are weigh up this morning are more engrossed in this story or the fact that spain got knocked out of the night. P last by chile. Ouch. They probably would have preferred something to think about this morning, the spanish on two fronts. The new king and the loss of a ground when it comes to the football world cup. The fed is sending Global Stock Markets higher after reassuring investors that rates would remain low. The committee believes economic ackstivet rebounding in the Current Quarter and will continue to expand at a moderate pace thereafter. U. S. Prosecutors are broadening their investigations into the Foreign Exchange industry. Authorities have been asking bankers how much they charge ustomers to exchange currency. And the fighting in iraq continues. Local police say they have taken back control of the countrys biggest oil refinery. It has been seized by extremists on wednesday. Ryan chilcote joins us far look at the latest. Coms in the country. What are we seeing . Look at the market first. Oil generally up since tuesday. Tuesday morning. Yesterday oil closed at a ninemonth high. Some of what is going nonis in beijing. It is now under the governments control. Now maybe there is a truce in place and they are evacuating people from there. Very important for iraqis. It is responsible for 40 of their refining. 300,000 barrels a day. Not just for the north of the country but also for baghdad. That is one of the friction points, if you will. The oil fields themselves remain very safe. 3 4 of the output comes from the south. We have b. P. And exxon beginning to pull some of their people out of the country. Having said that, there has been absolutely no change to the physical supply of oil, the oil over picture out of iraq the last week. It is just as it was. Earlier last week, we heard malachy, voices from the Iraqi Government saying now what were hearing from the u. S. Is that the option is off the table. President obama met with congressional leaders last night. Any signs that he is now shifting his stance and will take a more active role . Never say never. Even if they were going to launch air strikes, im not sure they would be very clear or public about that in advance. Definitely it does not look like that is on the cards at the moment. In fact, the message seems to be a political one for the Prime Minister of iraq, almalaki. While at the same time, it seems like were getting a message from the u. S. That they are not sure that he is capable of that. Think about that. Almalaki has been in power for eight years. I was in baghdad in may 2006 when he became Prime Minister for the first term. It was a very sectarian time in baghdad when he rifed. Arrived. Third term in april he was elected not with broad support among sunnis and occurreds but from extremist shia parties. Now he needs to be this uniter and there is concern that he might not be able to do that or this st not be able to do quickly enough to stop the advance. If you want to stop the militants from getting loafer to baghdad you have to get moderate sunnis onboard and that is something he has the failed to do at least thus far. Back to you. Lets get back to one of our top corporate stories this morning. G. E. s c. E. O. Is in france for the thi