Sound, at the speed of we will take you inside the worlds fastest and most expensive private jet. Outrageousions options, check out some of the strangest items ever sold on ebay. We begin with the big ecostory of the day. Chinas Economic Growth increased for the first time in three quarters after the government accelerated spending. Jonathan ferro has more with the market reaction. Are you still alive . Talk to me about china. This is reassuring for us in many ways. The top line is reassuring. Growth that 7. 5 . That is solid growth. The synnex among us the pointu take it as seven five percent growth, the question has been asked whether this economy is restructuring. Look at some of the credit growth going through and the stimulus measures and you ask yourself whether they can get the task done. Theyre looking at this and for that government to maintain legitimacy, you have to maintain jobs. They do not want the Unemployment Rate to rise. They have to generate growth, no matter what looks like. Lets talk about the federal reserve. There are two very Different Things to consider. Where do you think the way to focuses . Is it on janet yellen . A little bit of volatility in the air, we may see rates rise sooner than we think. Debate the excitement of bloomberg. It is little bit more measured, a little bit more nuanced. We might raise rates faster than you think. On the flip side, on the other side, if it does not, we might keep them lower for longer than you think. Forget about the testimony, forget about the q a session and look at the quote. Some of the valuations of some of the sectors are stretched, and it is quite big for a central bank to make that call. You think that is what the q a session wo isat is why day t important. I want to know about stocks. Janet yellen did say she is not overly concerned about the valuations. Very true. An interesting dichotomy at play. Lets turn our attention to the middle east. Editor Elliott Gotkine is in tel aviv. The ceasefire was frederick and not rhetoric and not reality . It andisraelis accepted posit their attacks paused their attacks for five or six hours until the rocket barrage became too much. There are temps in the region to broker a ceasefire. The Palestinian Leader is due to be in egypt. Hamas. Not control strip. Controls the gaza it will be their decision to observe the ceasefire or not. We have seen reports from that 100,000 gazans have been told to leaves to leave their home via israelis before further strikes. A large number of women and children and the like. In israel, it was the First Casualty as well. A volunteer to take food packages was critically injured in a mortar explosion. And later died from his wounds. Depressingly familiar and no sign of a ceasefire. You for that roundup. Lets turn to tech, apple and ibm, they are putting old rivalries to rest. Yahoo was keeping more of ali baba that originally anticipated. Ryan chilcote and Caroline Hyde are here with the details. This is a nice big move. Apple, ibm, finally we get the crossover between business and personal life. Interesting that these are two companies that have been feuding for three decades. 1984, the mac comes on the scene. Had, cades that ahead, we know it is all about apple. It is slightly better for ibm. In a nutshell, they will make business apps for iphones and ipads. The likes of Caroline Hyde can now use their iphone or ipad for more than just browsing. She can say, i won approval for this for her posh dinner. If we had more businesslike things going on, i see something selling well over there and i want to put in a big order for that. That is something people are not doing in the mobile space right now. Siemens, their employees have iphones. Why wouldnt ibm want to get in that space . Want you to put these earnings in context. This ibm deal with apple, that is less devices. So much growth going on in mobile at the moment. It is interesting that we have intel beating estimates. Asml, in the food chain, is the maker of chip machines. Their customers are the likes of samsung, intel. They make machines may have been investing a huge amount in this new euv technology. The machines that make more powerful chips. Areeems as though the sales not going as quickly growing as quickly as expected. Everyone was thinking this was the future. We know that smartphone and tablet sales are still growing, but not at the pace we used to have. Maybe these powerful chips are not in demand as quickly. Three of those machines were ordered. They will be sold in 2015. 2014. Ere expected in 2014 sales not looking as good. It will grow six percent. Morgan stanley saying this is another sales warning. News. Od a slightly different story on the tech story ibm shareholders thought it was delightful. Apple was up about two percent. The loser was blackberry. Investors continued to be concerned. 3. 5 that was down 3. 5 . Ibm returned about 70 to include dividends. That sounds pretty good. But then you think the s p take note, this deal gets announce yesterday. That is when ibm will have their earnings out. I think what ibm would like to say, look, this is a direction we can move in. Maybe they do not have exciting revenue numbers, but this is something that can sweeten things. This is a company that is feeling the warm winds coming from apple. We will get a new iphone, we understand, in the fall. That means they will be driven by that. Theyre already seeing profit escalating. Chipmakers are doing well. The company that provides their equipment, and not doing so well. Techank you for that roundup. We will stay with a hold tech theme. Also coming up, a bloomberg exclusive with the ceo of christies talking record profits. Welcome back to the pulse. Bloombergs on london headquarters. We are on the present. The pentagon has confirmed the f 35 will not make its airshow fleet. It was grounded by fire. An appearance was planned. Lockheed martin hope to boost foreign orders. Shares of Qantas Airways fell. Majorityowned by the australian government. 49 cap oneep Foreign Ownership in place. Rio tinto said production rose 11 in the second quarter. The expanded operations in western australia. Output matched estimates. Oil prices have fallen only seven percent this year 27 this year. Those are your headlines. Theme running through markets and this morning, it is tech. The fed concerned about tech valuations. They should a report. Sent facebook and twitter lower. A partner atw is passion capital. Decidesshocking the fed to send us a memo to tell us that tech is overstretched . I think it is interesting. They had to try to assert what their involvement would be and how engaged they could be with the market. It was a bit of a stretch for them to say is valuations were overstretched. Do you disagree . I disagree. I think it was a sweeping generalization and it was ill guided. A lot of media coverage, some of the examples people would throw out to validate Janet Yellens comments. The biotech index has a multiple of 500. Things like facebook. Of 20 since the beginning of the year. Up 136 from a year and a half ago. In orders of magnitude lets leave that aside. Apple and ibm, ibm has the hardware and apple has the kit. What a beautiful marriage. Should apple have a prenup . I do not know strategically, it is a great story. Soundsu can deliver fantastic. The question is, the devil in the details, how will the execute on this . Let take five years, six years will it take five years, six years, seven years . Look at the players in the deal. Are the executors . They are good leaders. I think theyre very good at focus and very good at getting their teams to execute. This will be it is going to be a little bit more than frost. They did go to great pains to make sure the underscore the commitment and the partnership. Time will tell. It will take far too long. A great opportunity for startups. They feed into this. An opportunity. There is an opportunity to deliver security and solutions and applications for ios devices. They are working out while they are working out how they do that, it is a great opportunity for startups. Do you think the innovation will calm in a kind of will come in the kind of companies that you back at the moment . I think so. I hope so. Google bought a company that was in the space called divide, all brought all about enterprise management. Google paid a lot of money for them. Ok. She stays with us for little bit more. Yahoo , alibaba, what does it all mean . The ceo of christies joins us live for an exclusive interview in the next part of the pulse. Dont go away. Welcome back. Let me get you up to speed. Session highs across many of these indexes. The dax up by one percent. Strong gains on the. 7. 5 , better than many expected. Is that reassuring . Rio tinto out with some solid numbers. On the flip side, the fed rings the bell and the Monetary Policy report on the valuations of some sectors. They call the valuations stretched. What do you think about that . Will janet yellen be pushed on various sectors of the market . Upside 7143 surprise. In five minutes, the u. K. Unemployment. Looking for that to come down to 6. 5 . What does it mean for the bank of england . Still with me is eileen burbage. Lets talk about yahoo . , she has managed to hold onto alibaba. Fantastic for them, a stroke of genius. Stroke of genius. They have negotiated the fact that they would have to 40 of their holding of the offering down to 27 . That means they get to hold onto three quarters of their holding in alibaba. That is fantastic. They will not about a billion dollars in cash net about 8 billion in cash. That is fantastic for the company. Is it a good enough reason to hold on to yahoo . The only reason pumping up yahoo is you have this vicarious holding in alibaba. As long as that is there, it is substantial. It is real. Until the Public Offering in until some of that settles out in terms of how much or were over aside, it is Worth Holding onto. It is the old the the only thing people are holding onto. It will be surpassed by microsoft in terms of ad revenue. Premium advertisers are not going to yahoo . That is a big problem. Which is why this was a stroke of genius to hold onto the alibaba stock. The reason they missed earnings could be rectified over the next two. She is buying time. How much time would you give her . With respect to this one transaction, it is fantastic. Been able to carve out, that is what saved them. Talk to me about chips. They make the beast machines that make the chips. How significant is that . Not a hugeit is problem. They had a huge amount of growth. You will have to see that slow down a little bit. All of the chip manufacturers have the equipment they need. This new technology, those machines cost 60 Million Euros each. You do not have to sell hundreds of thousands. Great to get your input on those tech stories. Come back very soon. It is an exclusive, live with the ceo of christies. Auctions. Lking opt what is big about china . Welcome back. Live from bloombergs European Headquarters in london. U. K. Unemployment is crossing the bloomberg terminal. The jobless claims, dirty 6000. 36,000. 27,000 was the forecast. The threemonth rate of unemployment remains unchanged at 6. 5 Weekly Earnings comes in below what the market was estimating. Was. 8. Mate the jobless claims dropped more than the market anticipated. We will have more reaction on the u. K. Data with the bill oneill. Make sure you stay tuned for that. Lets give you some of the top headlines. Eu leaders, their meeting in brussels, barracks considering expanding sanctions against russia. The u. S. Is urging the European Union to take a tougher stand against moscow. Chinas Economic Growth accelerated for the first time in three quarters. The Chinese Government had boosted spending and freed up more money for loans. Billion in deals at the air show. The biggest deal was with air asia. To the co to see you know about why he decided the ceo to know why he decided to bet big. Not a lot of choice in this space. For four years, i kept pushing airbus to reenter this. To their credit, they went back and took a look at it. You told me you are harassing them. How long . Four years. They told me know when many different languages. In manytold me no different languages. It will save us 14 of cost. It will enable us to grow much quicker. The makers of the worlds fastest, most expensive private jets are expanding their range. Bloomberg spoke to bolstering about their latest gulfstream about their latest plane. We are sitting inside the gulfstream, the largest business jet aircraft available. It is the longest range business aircraft, the largest cabin, and the fastest certified civilian aircraft in the world. Cuttingedge Technology Aircraft with an advanced cockpit. The most advanced business jet on the market today. This is a standard layout. This arrangement seats 13 for both eating, sleeping, and working. The airplane is capable for flying a must 16 hours. Itn fly to go missions allows you to get to your destinations quicker than any aircraft in the world. Price. Illion is the we have a backlog for the airplane that extends out through 2017. It is worth waiting for. It is time for a bloomberg exclusive. Christies had a record hot year in art sales, up 2. 7 billion pounds. The auction house got a boost from online activity. It is up by 70 . We are joined by the co, Stephen Murphy. A great set of numbers. Three quarters of a billion dollars. Can this kind is him and him and this kind of momentum just continue . The business has gone broadly into the larger art markets. We are at a moment in time where the culture has shifted to a huge interest in art. Over 103 more works million in the first half than the same period last year. The middle of the market has grown as well. In 2013, we had a 70 increase in works on paper sales. The world has moved toward acquiring and experiencing art. The standard line would be that china is up 50 of the big six the bigticket sales. How has that shifted . Talk to me about the complexion of the buyers. The mix of sales worldwide for christies, christies is a global entity and we are operating on auction and private sales online. E operate in three markets america is 38 of our business. Europe is 38 of our business and 24 is asia. What is really happening is buyers are buying worldwide. The chinese higher spent 46 more. Clients spend 46 more. What is happening for us as we are looking at our clients as opposed to regions. Talk to me about engagement. Talk to me about how you win these mandates. What is involved . How long is the process . The first thing to say about the weather system of the art market is it is not overheated, but it is vibrant because the sales are being achieved at such high levels. There are so many new buyers. 30 of our buyers last year were new to christies. They were brandnew people coming in to buy art. When prices go up, more great works come into the market. That is the virtuous circle. We are discovering so many new people every month that we have not ever done business with. A great deal has been made of zero percent Interest Rates. I look at the diamond list. I look at zero Interest Rates, pushing new interest and your market . People with means are having more time and money to spend on things they care about. I care about art and objects and jewelry, etc. A tiny percent of our clients are pursuing these passions as asset moves. The Hedge Fund Manager who wants to buy the picture. Is a passionate enterprise. Lets talk about some of the other asset classes. I love watches. Some of them i cannot afford. The online watch business youve got is interesting. I find it fascinating. We have the watches business, diamonds. Where are we apart from the big blockbuster our tickets . Art tickets . Christies is a place that people should be able to come and get advice and counsel about their passions and a transaction, if they wish. We have watches, wine, jewelry, art. That is who we are and what we offer. For the watch aficionado, the reason we built the site was to have auctions online and to reach that market. The real reason we are doing it is we know that if we connect with our clients and they buy a watch or to wear three, take a connected to a christies specialist who will bring them into the world of christies. Last month, a gentleman who we never served before bought three watches and then migrated to an offline auction and bought an american painting. That is our strategy. It is the ultimate high night worth High Net Worth sale is building that relationship. A great quarter for russian arent. Russian art. Are you concerned about geopolitics . Do you look at what is happening in russia . We are talking about the art if we are getting the conversation right because the art comes first. We have to invite them to enjoy it. Dips in certain markets within a year or quarter are dangerous to draw trends from. I was recently in mumbai for our first option in india auction in india. This local reporter asked me, why are you here with the market kind of soft question mark we are here for the next 100 years. It may be a little bit dim right now is beside the point. That was the other thing. You will stay with me for a while. Your opening more space, more physical touch and feel space. Broadento engage and to the appreciation of what you guys do . We have grown to 14 exhibition spaces around the world and therell be more in 2015. Our belief is that the world has gone online for information and bricks and mortar for experience. We have to provide both. Christies ceo Stephen Murphy staying with us. His fashion collaboration goes on sale this week. The bags are a bargain. The worlds most expensive living artists. His original sculpture sold for recordbreaking 58. 4 million. Lets continue our exclusive conversation with Stephen Murphy. The auction house had a record halfyear results. Sales up 13 . Nline sales up 27 over 170 countries. Talk to me about the marriage between online. You have one of your competitors who decided to get in bed with ebay. Talk to me about what your versuss is doing online the new spaces. The simplest way to describe the strategy is to say that we looked at what were customers were doing and we try to replicate that for them. Customers