Welcome to the pulse. I am anna edwards. Also coming up on this program, it counts your calories, measures how must you exercise and takes your selfie. Can this smart fridge air your dirty laundry to . First, some news from south wales. The nato summit is beginning. Lets get out the Ryan Chilcote on the scene. I take it that is what all those nato leaders are looking at. That is exactly right. Of nato are all watching this flypast which has been underway for a little while now. We have the fourth group of aircraft coming through right now. Bute, likely to the f15s you will have to forgive me if i mess it up a little bit. There are several aircraft involved. I show of force from nato. This is the first gathering in two years. The last one was in chicago. This one, perhaps the most important in a quarter decade with the crisis in europe and ukraine and the price is in syria and iraq. Here comes a voyager, a massive aircraft as you can see. Not just fighter jets, but a whole range of aircraft. Finally, i dont know if you can see them just yet, but we have the red arrows coming through. Aircraftthe u. K. Stunt and they are flying red white and blue, as you can see. This is the last of the aircraft to come through for the nato flypast. Pretty impressive. World leaders taking five minutes out of their schedule. That is it, anna. We have already had a very busy summit here. Yesterday, dominated by the issue of ukraine and the crisis. Today they are talking about how they can counter the Islamic State in syria and iraq. Perhaps sending nato trainers to iraq. A lot of the discussions here, not so much about what the alliance can do together, but what separate countries can do. Ofwill be talking about all that much later in the program and throughout the day. Ryan, thank you. We will be back with you pretty shortly. Lets get to our bloomberg exclusive interview this morning. Mark barton spoke to economist Nouriel Roubini in cernobbio. When asked about Mario Draghis move to call for almost 1 trillion of stimulus, roubini said it was a step in the right direction. Movement decided by the ecb yesterday goes in the right direction. I think the most significant part of it is not even the conventional part of it. But the fact that right now the ecb has gone into unconventional modes. What they decided yesterday is a form of quantitative easing if you believe that quantitative easing is increasing the Balance Sheet directly. It doesnt really matter whether you buy private assets or public assets like sovereign bonds. What they have decided to do is increase significantly the Balance Sheet from the current 2 trillion, closer to 3 trillion. That will have a Significant Impact over time together with other policies like fiscal policy and Structural Reforms. What do you think we can expect on the assetbacked security front . How long will the program last . Buy risky of versions of assetbacked securities . I know we will get the details next month, but what are you expecting . Well, first of all, the most important part of the announcement is that they are going to buy existing assetbacked securities and bonds. Loans is going to take a long time. Changedlations have not so you are doing Something Like the fed did. Abs,cb is going to buy existing ones, and existing covered bonds. Thatcb has pointed out they are going to concentrate in these abs securities. There is a question of whether go without ag to guarantee coming from the eu government. The ecb is going to take that credit risk and concentrate on the part that is safe. Abs andg existing covered bonds, it can actually buy in large volume. If they are deciding to buy new loans, that flow would be very small in the first ways. Do you think draghi is merely buying himself time . Part of the reason for that could be this supposed spat with the bundesbank president. Is he buying himself time before the ltro program to launch out right qe . This is qelight essentially. When do we get fullblown qe . Ltro areof all, the not quantitative easing directly. They essentially depend on the demand for these new loans by the eurozone banks. It is demanddriven. Increasing the Balance Sheet is going to come by the decision of the acb the ecb. It is already a form of quantitative easing. The liability side is increasing on the Balance Sheet. Not directly if it of using. Are not directly quantitative easing. I would say at this point, quantitative easing itself, given the objections of the bundesbank and others, we are not buying sovereign bonds. Once you start buying abs and covered bonds, the next step might be buying aaa Corporate Bonds. What is the difference between aaa Corporate Bonds and sovereign bonds of similar risk type . Therefore we are on a direction that eventually may lead to asset purchases of sovereign bonds. Why, the amount of existing abs and covered bonds is limited. The ecb wants to increase the Balance Sheet. They are going to soon run out of abs and covered bonds to buy. To bext that is going either Corporate Bonds or sovereign bonds. Effectively, quantitative easing has already started. That is the chairman of roubini global economics, Nouriel Roubini speaking to bloomberg this morning. For more on the ecb surprise move this week, lets bring in our markets editor, manus cranny. Good morning. Expecting whatt we got yesterday from the ecb. It is being described now as qemike. That is a bloomberg term. Filled with tidings of not great joy he recently. That was kind of an upbeat take on it. I think he has had a rebrand. Equity markets were triumphant. They always get the best stats before i get on the telly. Two year bonds in negative territory. Is that right . Is that the correct way to add value eight european debt . As you heard, this is stage one of expanding the Balance Sheet. Taking more risk on the Balance Sheet. They only want clean, tidy stock at the moment. What is abs . It is banks. They lend money on cars, on buildings, on nice, clean things. There is a loan for a million , the and there it is Interest Rate payment. We will lend you some money again fast. That is what Asset Backed Securities are. Then you want the good stuff. Heard mario have draghi suggest that it means he is not buying things that look like derivatives. You are very graceful, you are correct. Shorter word of a with four letters. Are prepared to get involved but not terribly involved. Germans dont want to join in. Jens weidmann has dissented. We will have to wait and see. Bondstwoyear government below zero for the first time ever. And the euro went below 1. 30. Peacereading el erians and he was saying the ecb is ready for unconventional measures. The words that roubini used as well. Suggesting the positions for fullscale qe. It showed that the ecb is not too worried about the multi track centralbank world that we have been talking about quite a bit. When Central Banks that have been on similar paths are now emerging from the financial crisis at very different speeds and in different directions, that raises the question of what role the euro plays. On that, the funding currency, i had a conversation with Valentin Marinov and this is their top funding currency of choice. With Francesco Starace about 10 minutes ago. What i found interesting there, making the point that it is about structural reform. Monetary policy itself will not be the absolute answer. You need Structural Reforms to come along. An italian ceo stated that we need structural reform. , perhaps telling the government. The funding currency of choice. Bond yields, my proposition would be, there is something not right in the world. When you have eight major Global Markets on twoyear global bond yields in negative territory. Maybe they are preparing for something much more we will get some further analysis of this. I am very excited to be speaking to lorenzo bini smaghi, former ecb executive board member. That is coming up in just a little while. Thank you very much. Now back to Ryan Chilcote in south wales where nato is meeting for the second and last day of their summit. Hopeful apresident is ceasefire can be reached later today in belarus. The eu has been talking about new sanctions today. How likely is that . Is it contingent on what comes out of belarus . It may be. And worldn minister leaders have been vague about timing of sanctions, other than saying they expect a decision today. They canituation where have their cake and eat it too. Peace talks are supposed to begin in two hours time in minsk. Wait to see what happens. There seems to be a consensus among the leaders that i have heard from that the sanctions should go forward and they can always, if these talks are successful and the ceasefire is agreed, they can always be pulled back. Have a listen to some of the foreign ministers. It is deeds, rather than words that matter. We have seen russia go into different commitments and violate them. That is why deeds matter. I dont think anyone has the appetite for sanctions but i hope that all countries have appetite to stop this conflict in ukraine. Decidedpean council that European Commission has to make concrete proposals to move forward with sanctions. It was a unanimous decision. To be fair, there are sanctions and there are sanctions. The sense is that these are sanctions. We have heard from the german chancellor, suggesting that what we get out of the European Union is something quite similar, along the same lines of what we already had. What that means for equities and bonds is really, perhaps more Russian Companies are finding their access to European Capital markets restricted. So far we have had russian banks and Defense Companies. Some banks and Defense Companies losing some of their access to European Capital markets. The sense is that that could be extended to more Defense Companies and maybe some russian oil companies. A stepely would be forward in terms of the sanctions but not a huge one. We heard this week from president putin and he has presented a sevenstep plan towards a ceasefire. It called for a number of concessions from ukrainians. How ready is poroshenko to make concessions in order to reach a ceasefire . He sounds like he is rather ready to make concessions. Perhaps that has something to do with the fact that over the last week and a half, things have changed on the ground in ukraine. The Ukrainian Army is on the retreat. They have given up a lot of the ground that they had as these more than 3000 Russian Troops have really been moving. Other reasons for that, perhaps poroshenko is here at this summit realizing that he is not going to get the assistance that he perhaps was looking for or that could make a difference in the fight. He was looking for military aid, for weapons. That doesnt appear to be forthcoming. While the sanctions, most people agree, have affected the russian leadership, the russian economy, they certainly havent changed the russian president s behavior. Perhaps these are some of the things that have been waiting on the ukrainian president s mind. Yesterday he was talking about how ukraine is tired of war. What we dont know is, our understanding is, based on our conversations with people in the russian government, what the russian president wants is a buffer zone where they would effectively have enough autonomy that they could veto big federal decisions made by the government in kiev, like joining nato. That is something we dont know. Is he prepared to go that far . Fascinating. Be thank you very much, Ryan Chilcote. Still to come, a direct challenge from huawei. Find out how the Telecom Manufacturing giant plans to take a bite out of apple after the break. Welcome back to the pulse we are live on Bloomberg Television. Turning to technology now, huawei throws down the gauntlet. Chinas biggest phone Network Equipment maker has given itself a threeyear window. Hans nichols is in berlin. They have some ambitions to overtake apple in terms of market share, do they . Number two. To be apple is at 12 market share. To get through apple, you have to take a bite of samsung. To get a sense for how ambitious this is, right now they are at 7 . We talked to the head of the consumer projects. He said that yes, he is an ambitious man. He is not a humble man but the race is long. Sticking with the apple theme, we also heard about some new security features from apple. This very topical. The celebrity photos that seemed to be hacked earlier this week. We are looking ahead to new releases from apple next week. This is a big question here. Sorry, thought we had some sound that we could play there. This is a big question. You had samsung frontload this. They came out with their 5. 6 inch phone. From huawei, we got a sleek six inch phone. What does apple put out next week . We have been talking to a lot of analysts here about security concerns. What apple is saying is, they are going to have an additional layer of security. That notification, if someone may be accessing your icloud, you will get an email. It will be similar to bank notifications. They want to assure customers that their photos are secure. It will be a big discussion Going Forward. We have to wait and see what apple comes up with. Do they come out with a watch, a new iphone . We get all that next week. I will be waiting. We would try to find that sound for you. Hans, thank you very much. Keep it right here. Later this hour, hans will be speaking with the ceo of monster product in his first interview of the day. Still ahead, draghis surprise. The ecb cuts rates. The ecb strategy with a former board member at the central bank. That is later on the pulse. Welcome back to the pulse. Time for a quick check on the equity markets. Markets are trying to digest what mario draghi did yesterday. Qelight. The beginning of unconventional measures. The size ofe near the Balance Sheet the Federal Reserve managed to do with quantitative easing. The ambition is 3 trillion. 2. 7 billion euros. European equity markets taking a bit of a pause. The real impact is on the currency market. Yesterday whenop we had that come through. I caught up with citi. This is the currency funding of choice. 1. 25 is potentially achievable. You want to go into turkey, rand, highyielding currencies. Ready to bank of japan do a little bit more action. That seems to be the message coming from the bank of japan. That is it for me. Lets see what anna is up to in the next part of the pulse. Welcome back to the pulse live from bloombergs European Headquarters in london. Here are the Bloomberg Top headlines. Mario draghi has called for almost 2 trillion in stimulus. The ecb president said it would significantly steer the ecb Balance Sheet back to the higher levels seen in 2012 and revive inflation in the euro zone. The council decided to start pershing purchasing assets. Euro system will purchase a broad portfolio of simple and transparent assetbacked securities. Economists are forecasting a todays230 thousand in u. S. Jobs report. It would be the seventh consecutive month of growth above 200,000. Nato leaders are starting their meeting now. Yesterday, David Cameron urged leaders to refrain from playing a british citizen remains hostage of the Islamic State extremists. Lets look at the latest Technology News coming out of appliances that can talk to each other and air your dirty laundry. Hans nichols reports. A camera inside your fridge. Text your fridge and it sends you back a picture of what is inside. Your smartart of home, onyx of products for sale and some futuristic concepts. This bathroom mirror from toshiba syncs with your watch and monitors your health. This has the vital signs or the calories, things like that. You can see that as well as a schedule and the weather. Lean lunche a little today. If my bathroom mirror told me i needed to have a leaner meal, this monitor above my stove would show me how to cook it. Comeam struggling, i can down here, call my mom, and she is going to walk me through it. There are two reasons why a fully connected home may stay only in showrooms like this. One, a common language, a common protocol for all these machines to talk to each other. Security. How do you ensure the home stays private . On the other hand, who really cares about my dirty laundry . Be interested in hacking into domestic appliances . Who should be interested in reading what you have in the washing machine . Doubt somebody is interested in that. It may not be that interesting, but i dont necessarily want people to know how little i exercise and how much i ate. Techns nichols at the fia fair. Lets bring you in here. Am i going to have to learn to speak german to talk to my fridge . No, it wont require that sort of precision. You can just texted something. The interface was in english. There are a lot of exciting gadgets here. The question really is, when does this become massmarket and for the consumers. We are joined by a guest, noel lee, the ceo of monster, the head monster. He has brought products to the massmarket. You do a lot in the wireless space. What is the next thing to come that we will be wearing on our years . We are in the wire