Good morning. Welcome. You are watching the pulse. I am guy johnson. What else have we got for you . Accounting offers a list all. Will gobranson said it to space before the end of the year. Counting off the lift off. Air france pilots say they will stay on strike indefinitely. We will sow the troubled carrier can get off of the ground. Data coming through at the moment. I. E. Euros september Services Data was weaker than anticipated. Numbersust getting the at the moment. The manufacturing numbers at 50. 5. That is pretty much in line. The services looks a little weaker. Earlier on we had a french manufacturing data better than expected but germany was worst. That is a positive spin we will put on. Our top story. Israels army said it has shut shot down a syrian warplane near the border as the United States and arab allies launch their first airstrikes against militants inside of syria. For more, lets bring in elliott dokken. Lets start with a is really an story. A little bit of confusion where the at craft was and why it was downed. What are the details from the israelis . As far as it israelis are concerned, a syrian warplane and they said it was a russian made a fighter inside of airspace. The defense minister said it was acting in a threatening manner and that is why it was shot down. So far onlytate has confirmed that a syrian warplane was downed. Perhaps this series will say over syrian territory. Occupiesarea, israel the area from 1967. Certainly, no law and no love lost between the countries. There is a policy from the syrian perspective to bring israel into the civil war. It has enough troubles on his hands dealing with rebels. It is the first time in there has been such an incident in a three years. There is the occasional mortar. Hells that landed in israel but nothing like a warplane being shutdown, guy. Turkey. On the turkish border. Lets talk about the airstrikes. U. S. And arab allies hitting targets inside of syria. A significant escalation and a little bit of confusion about who and when. From a regional point of view, not a massive surprise. Not a surprise in the sense that barack obama a couple of weeks ago in his address said they were not hesitate to strike Islamic State militants inside of syria whether the government liked it or not. In that sense, the u. S. Is simply keeping its word. It has targets inside of syria. The Associated Press is reporting that more than 20 militants were killed in the strikes. And if the u. S. Was not doing it alone. It has support, military support from its allies, saudi arabia, and jordan, and qataris chipped in on their territory to launch some of the strikes. That will get some measure of comfort to the u. S. That the strikes inside of syria will not be misconstrued or misinterpreted as an aggressive war that perhaps might be seen as the iraqi conflicts in 2003. Elliott gotkine joining us. Exciting subject but it has become sexy. The u. S. Is struck down trying to make it boring again. They are tackling tax inversion. The Obama Administration has announced regulations to make a more difficult for American Companies to move their headquarters overseas. It has had a massive impact on the m a singer. What to do we know about the rules and how far do they go . Lets make an exciting and have a real life example. We will suppose i have a horse form in kentucky. Lets say it is owned by francine. Her horse farm is making massive amounts of money and we want to buy your less expensive horse farm in england and we want to use the money from caroline francines base. I purchase your farm and we own it and we redomicile in england. Long. Cut a hopscotch it is one of the few things treasury has the power to do administratively without legislation. They want to stop the hopscotch loans. It could affect eight pending deals. Deals that have been announced but not been closed. It is important to know that whatever jack lew announces is not retroactive. If you got in under the wire enclosed your deal, you are safe. Mayou are still out there be burger king, it is unclear whether burger kings purges of tim hortons will be affected. It depends on how they structure the finance. Yes, it is complicated. For the Obama Administration, it is a half measure that they could do before the midterm elections. Measure. F many say basically what needs to happen is. Tax reform. The reason why we are doing this is because of attack tax in the United States sucks. That is the biggest story here, isnt it . Some ways, yes. Until that uncertainty into the midterm elections which happens in six weeks, a you may have a brief window before the president ial campaign, the first half of 2015 for comprehensive tax reform. Very difficult to do, entrenched interests. 35 is the tax rate. In reality, most Companies Pay lower. 20 20 5 but because they have many deductions. 25 because they have many deductions. You have to take away the exhibits exemptions and that is difficult. It takes a real big push. It will be challenging. You have a half measure that will stop short term inversion. You are saying that the markets react. And we will see if it is enforceable. Can the companys challenge the loss simply because they were in laws simply because they were not passed by congress . Seend news for the m a appetite scene and potentially good news for the lawyers. Somebody has to win. Hans nichols. A big deal further down. Lawyers will watch carefully. Now from m a to ipos. After the biggest ipo in history, alibaba, another is lined up in the United States. This time it is a bank. Citizens group. It is the american a unit of rbs. Caroline hyde. How much is going out of the door in terms of the business that they will be putting on to the market . 25 . That is how much of they want to sell. The pricing will be between 23 and 25. That means citizens financial is worth 14 billion. A big player. The 11th biggest publicly traded bank. Bank ipo since 1999, Goldman Sachs. 5 million customers and more than 1000 branches. It was history all the way back to 1828. Almost 2 centuries old. Sincens has been around 1988. It will become a separate company. They could take a Regulatory Assets off of the rbs Balance Sheet which improves the ratio. Say have said it will be a real boon in terms of capital. They tried to sell the unit as a whole. Not so many takers. B tohave had to go to plan sell shares publicly. It is all about the british government. Getting a more a safety net and get the money back of 5. 5 billion pounds used to rescue rbs during the financial crisis. They want rbs to switch their focus. Come focus at home. Corporate. There were concerns coming because the u. S. , regulation, they were making a foreign owners subsidiaries having to look at what was going on in the United States. Back in march, citizens failed the feds stress test because they were not ready. The first time they had been looked at by the federal reserve. And if the capital plan was not up to scratch. The fed said the practice under the stresses were not good enough. The u. K. E at home in can focus on what they do and she isds of the u. S. , taking over citizens financial antique and make sure things run smoothly and of the u. S. Of things to do. Caroline, thank you very much. Lets stay in scotland. Right. Caroline hyde. Lets move on. Deadlocked on the runway. Air france pilots said they will stay off indefinitely as a result of the story. , deadlocked on the runway. What they have to do to get off of the ground. 14 minutes past the hour. You are watching the pulse. No end in sight for the strike of air france. [indiscernible] the strike is costing 20 Million Euros a day air war aiming just a warning euros a day and warning the travel plans of thousands a day. Join me on the phone is chris. Has been covering this sector even longer. He knows the score. Chris, can in her friends really ifair france really compete it does not set up a low cost carrier . Your point is absolutely right. Whether competing in short because after the end of the daycare france has a demand aggregation. It is on medium and longhaul services. Of thethe cost shorthaul feed down and secondly, if it is going to grow, it is not going to grow with the short operations. We concede elsewhere. Special can see it elsewhere. Can see it elsewhere. What should management do . It is not going to grow a great deal. Kyle its who say they will not tolerate some pilots who say they will not tolerate. How do we get a meeting of minds . It is exceptionally difficult. This question about how do you affect change. How does management exercise the rights to manage . We know the cost associated with it. Those at the meeting saying there needs to be an event. Any europe, we do not have that. Recognition, the they have to make the changes this way or there is no future of the business and that will take a long time and friends. In france. The reality is that the world has changed. Growth in europe is coming only from lowcost carriers whether standalones like ryanair or jetblue. Or another that has a growth strategy. In terms of having a fleet of probably 200 aircraft. Are you suggesting if chapter 11 was available, it will be the best route to go down . Ati am not suggesting that all. That is something u. S. Carriers have been able to use. In europe, we have seen whether fsa guessing an agreement to make the change. To enable the finance and to be put in place. It is a fundamental issue. A lot of Airline Management despite everything and the balance of power. External supplies as well as internal supplies. In this case here, exactly the point to be made. Where air france will grow in the shorthaul and the other point is longhaul. Fundamental changes in longhaul traffic and that is what carriers are doing in north america, increasing presence. It does not connect in european cities to fly over to the indian continent country and beyond. Also longhaul. We may be talking about lowcost as well. We are beginning to see it. We are are ready seeing with norwegian. The majority of growth from what i would call the emerging or economies in europe. What ever you want, it will come from decisions taken by airlines in a the region. Furthermore, with seeing the benefit whether the 787 or 330 now. Whether norwegian outbound from europe or in a bound, [indiscernible] not only looking at lowcost shorthaul platform but also a longhaul one where it in these that for later to keep up with the gulf carriers. Thank you very much. Chris tarry, aviation analyst. It is going to be interesting. A fascinating winter. I was talking to a ceo and he was telling me hes is a bloodbath this winter. Ryan air, watch very closely. A lot of work cut out still to do. We will stay in roughly the same a place. We are going to look at jimmy choos plans to go public later in the pulse. Welcome back. You are watching the pulse. Richard branson said aversion galactic Virgin Galactic will go into the air before the end of the year. I am confident we will go to space before the end of the year. That is not very long to go. What held us up was of the rockets. It took us a lot longer to build rockets. Rockets have tested the and we have now tested the rockets and they have passed all of the tests. Over the next few months, we will be doing has and by the end of the year, we would have gone into space. It will move to new mexico where the space port is. Upelf and my son should go in the early spring of next year. I think about 700 people have paid deposits. Have you had any pushback from them . Almost anonymous so as a. We are up to nearly 800. Almost none whatsoever. They have been patient and realize it is Rocket Science and want to make sure we do not hurry them up there. They want to come back. That is what the team is doing and they have done a fantastic job. Im confident we are as good as there are now. We have more test flights to go. You will start seeing virgin going into space a by the end of the year and starting the whole Space Program in the spring of next year. For someone who actually talk etc. Agreement and green talk etc. , how do you make them more carbon mutual, the whole Space Program . We dramatically made it almost completely carbon neutral. Wicca puts people into space for less than we can put people into space for less than a ticket from london to l. A. A dramatic reduction in cost. One day, we will transport people around the world by space. Almost no carbon output whatsoever. Big, big a breakthrough as far as carbon outputs are concerned. Yes, a lot of very, very exciting things ahead of Virgin Galactic. Richard branson, back on earth. What else is happening in the markets . Equities are punished as well. The ftse is down by 1 . Dax it down by 0. 8 . Taking we is talking about is tate lyle. Down by 24. 1 . Has brutal treatment. The outlook of prices. This today the warning of outlook of profits. Guess what the stock is doing . The inevitable. Is betterrom chatham china is better than expected. Strata down the line. Services, manufacturing, all contraction. 0. 9 on the 10 year. Look at spain. Spanish bonds. The challenge for the program [indiscernible] heark a top court will the challenge. Special treatment, harnessing the power of personalization. The ceo. Dynamic yield is coming up after the break. Good morning. Welcome back. You are watching the pulse. I am guy johnson. Israel has shut it down a syrian warplane in a israeli airspace. That is according to is army as the u. S. Carried out airstrikes against Islamic State militants inside of syria. Jordan. Is working with and the you a deal. Turkey said airstrikes are not enough. Uaed. Rdan and if you only consider that yous, this means are not fully involved in this struggle because airstrikes is only one dimension. There would be things that need to be done from the air, on the ground, from animate intelligence perspective. They all have to be taken into consideration and we have to look at this as a whole. If we do not have this kind of comprehensive of approach, the job will be have done. You can watch it therefore interview tonight on charlie rose right here on bloomberg television. You can see the times on the television in front of you. Ecb president mario draghi said he will not wait for stimulus to reach england. He said he would take an active role in fighting stagnation. We are star a tradition from Monetary Policy framework predominately on passive bank credit to a more active and controlled management of our Balance Sheet. Mario draghi speaking yesterday in front of the european parliament. Two technology. We all alike to feel special. I do anyway. When reading our shopping online, many websites treat you like everybody. One is really startup wants to change that. Elliott gotkine has more. Israeli startup was to change that. I am joined by the cofounder. Great to have you with us. Tell us how do you make hundreds of millions of people online visiting websites feel special and be treated differently . Personalization. We are very different personas. We are looking for Different Things when we go online. We are not in a position where we want to tell websites what we are looking for and we want it to adopt and learn. Wintermple, i am into sports and im searching for my gear and i will like the website to cater especially to me and bring me the special offers. Chris instead of you going on a retailers website issuing you webpage, it will show you Winter Sports . Website, go to any they are met with a lot of products that are not interesting for you in the context right now. The website is a we learned that could predict your behavior, narrow down the choices that are really interesting for you. Track even when not on the particular internet page . We track your behavior on the actual sites. When you are browsing like reading the new york times, you are sending a lot of information based off of what you are reading. Bothering you. T we at just the experience to be one of the best. You also track me when i am not on the new york times. Could you get my interest elsewhere . Information share between customers above which ran our engines in the background to perform better. A sportsknow you are fan. I would not share this information out with a different sites. We know to send you more sports related articles even if you visit a website. You mentioned the new york times, are they an investor in you . Tell me how it came about. And anynew york times other publisher, the quest to improve User Engagement and have Better Service for the user. If you think about traditional news, you have a printed paper and to scan through the pages you are interested in. [indiscernible] to show the of what user is more critical than in the previous version. Theres a lot of experience worldwide to optimize to be more relevant to the person reading the newspaper right now. And ever raise over 50 million from the new york times. You said eventually you will be acquired. The aihat the is that m . Aim but theot the animal of every startup is to become a phenomenon. It is the hyper competitive market. Facebook, aol, yahoo , they acquire such startups because startups like ourselves are strategic to the future of marketing. Offeredthe startups get along the way. Too tempting to say no to. We look forward to having you back. Liad agmon, ceo and cofounder of dynamic yield. I think you are very special. Ditto, elliott. Joining us from tel aviv. Siemens is expanding is virtual offerings. Hans nichols trying on a new software to respond to water emergencies. Necessary toigs, extract oil but dangerous to get to. Developed a 3d game to train workers before they arrive. Are often fars away, they are remote. I will visit one but virtually. My task is simple enough. Find a leaky pump, turned the myve, and shut it awful stop instructor threw me a surprise. And shut it off. My instructor threw me a surprise. I cannot do it. A man is down. Do i save him. And awkward. M slow then, i did the hang of it. It is by design. The idea is to be game like. The users have to be the experts in terms of application. They can use as a simple game. Chris offerings like this is an example of siemens, europes largest engineering company, trying to go digital. It employs 17,000 software engineers, more than sap. After i put out the fire, i tried to run and jump off a so