The ryder cup tees off in scotland. Were going to look at golfs prop you ready problems. Popularity problems. And the battle of the bubble. We had to france to find out why champagne is losing its fizz. Press echo is taking over. First, lets talk about the markets. Stabilizingcks after a decent selloff yesterday afternoon in europe. Lets talk about the action, put it in context. Jonathan ferro. It is a dangerous game to look at one section and start to blame a whole different thing. Everybody is trying to blame everything. Nasdaq, techhe stocks fell off, apple makes up 7 of that index. That stock really feels it. You can explain that one right there. I think we should look at the week. Not just the macro stuff. Look at some of these companies that are coming out with profit warnings. You have tnt talking about europe and the struggles there. You look at the data from germany. Business confidence trending lower. Just a story of internal management problems. ,t is a story about food prices which arent going anywhere. It is a story about a whole these companies havent really restructured. My take away is that there is enough negative macro news out some point, there may be a trigger and have it knows what that trigger will be. It might not be that significant but it acts as the catalyst. I think the bullbear debate has heated up. We had a couple ipos in europe. Some people think that the s p 500 bull market run of the last five years has been off the back of strong earnings. Earnings per share, what is that a result of . A lot of it is the share buybacks. We had 2 trillion worth. That is off the back of low wakes. What happens to rates when they do rise . What does it mean for those kind of themes . We believe it there. Thank you very much indeed. We are going to talk a lot about golf the day. In the meantime, we are going to talk about tax. The internet has been vulnerable to a security flaw for years. Governments and Companies Just waking up to the threat. The u. S. Department of Homeland Security is warning about the shellshocked bug. Our international correspondent, but he might as well be internet correspondent today, hans nichols joins us now. Apple may be vulnerable to this. The internet of things may be vulnerable to this. Is it possible to quantify the risk . No. All we know is that the risk is towards the top of the charts and that is from an official government agency. They say this is a 10 in terms of impact and vulnerability. You mentioned apple. Apple just came out and said that their os ask system osx system, most of them arent vulnerable. They are only the owner if you have changed advanced security settings. I get to pretend to be a computer scientist. Normally we pretend to be economists. Lets talk about the bash code. Systemssource code unix that has been around since the 1980s. This is where the vulnerability exists. Here is what the department of Homeland Security says. Official Statement Last night guy, that is governments take and it is a very clear message to i. T. , directors, everyone running the backend of a security system. They need to fix this bug. There is a patch available. Download the patch and also figure out which of your systems are indeed vulnerable. Many ofhere are so them. That is the problem as well. It has been around for a long time. You have to figure out where it is and where the patches need to be applied. How does this compare to the heartbleed bug that we were talking about recently . Trick users like you and me into changing our password and that password opened the front door to our security systems. What we have with shellshocked is a vulnerability on the backside. This isnt tricking consumers. The tools they are using to break in, they are quite primitive. In some ways, that is the problem. This is so old, you have to fix the back systems on architecture that is really from the 1980s. A remarkable story. What is most remarkable to me is how long it has taken for everyone to wise up to it. Like governments and companies are raising alarm bells. And the implications for the internet of things, we will watch that as well. Thank you very much indeed. Beenair france shares have under pressure all week. We know why. The pilot strike is in its 12th day. The company has offered big concessions. Kari lundgren joins me now. This was meant to be about transavia. The fact that we have not had a deal done seems to suggest that the pilots objective may be different. It seems they are still worried about the transavia side of things and how that is going to be. There is a cap on it. 14 planes, it cant grow beyond that. Point, the question is how that is going to grow. What the pilots are worried about is whether the contract , whether theing terms and conditions for those contracts are going to be different. They are worried that if you are an air france pilot, are you going to be under a different contract . This is something they are concerned about. Are we any closer to this strike ending . We had a statement from the board today. We had a statement from the sky team pilots alliance association. Both sides have their backers. The board was very much saying, if we are going to grow trans avioa france, it has to be a lowcost thing. They dismissed having one tract across the board. We havent heard much this morning yet. One would hope there is going to be something. The weather in scotland this morning looks glorious. If i want to get there, there are a few options available. You can go by private jet. You can pull with other hedge fund managers, company owners. You are talking about business on the golf course, you could do it in your private jet on the way there. 1800 pounds. For a single . That is a return fare. It would mean flying with people you dont know. Better than the 10,000 pounds you would spend doing it yourself. I am sure it is worth every penny as i watch the golf on the monitors in front of me. Thank you very much indeed. Cup. Get more on the ryder Caroline Hyde joins us for that story. It is clearly one of the highlights in the golfing calendar. In your calendar. It is even better to watch live. But nevertheless, this is a big day for golf. Golf is finding life quite tough it elsewhere. You said it is great to watch on tv. I am not such a fan. There seems to be a problem. Since tiger woods hasnt won a major since 2008, some people are calling it free fall. You see money flowing into golf. You see tv ratings falling. Golf clubs closing. How are they going to build up the momentum again . Rory mcilroy is helping. He has just won two majors. Widely followed on social media. It is helping with europe. In terms of social Media Presence versus the u. S. , we have europe with more than a million likes on facebook of the ryder cup European Team. That is three times the u. S. Twitter, two point 8 million follows for the European Team than the u. S. Team. Only way they win is instagram. Fowler has u. S. Emblazoned on his head. Usa carved into his haircut. He is helping with instagram but generally they have to up their Media Presence. They also need to get women on board. Whenlittle referendum vote they announce that women can now become members. Big move. There are still two courses on the british open that dont allow women but it is getting the youth involved. One area is asia. The middle class is swelling. We see more participation there. You bring up rory. He has a new driver in his golf bag. Bright green. But this is a new nike golf driver. As you say, big following. Golf is proving to be tough for Companies Like adidas. Nike is faring better. They say Action Sports and golf were the two areas they didnt see growth but they are optimistic. They are saying, they have gone in hard. They have sponsored the key players in terms of social engagement. Tiger woods, rory mcilroy. He has a new club that is going to get people talking. This is a company that puts their money where their mouth is. Salesow spend 12 of all on athletes endorsements. They have about 30 billion. 12 of that is a lot of money. They are on track to be spending big. Sales of 15 . Europe doing very nicely, up 25 . Greater china up 20 . Profits are doing well. This is where they are really standing apart from adidas. As seeing sales down and having to issue profit warnings. Nike going from strength to strength. Social media, they won. Also in golf, they sold a lot more boots and they have these new boots that they have ronaldo wearing. They are winning in terms of golf as well. Caroline, thank you very much indeed. She will never have a driver by the end of the day. Up, no retreat, no surrender. Air france saying they are still refusing to back down. My next guest says the strike could come back to on them. He will explain why when we come back. Good morning. You are watching the pulse. It is friday. Air france pilots still on strike. They return to the negotiating table. Concessions from the airline have nailed to stop the worst strike this century with the airline losing 20 Million Euros on an operating basis every day. How long can this carry on . And economist, over at sex o bank. He covers this area. Good morning to you. Walk us through what we may see next week. Does this represent and exist shall crisis for air france . How serious is this . It is a disaster for air france. As you said, the company is losing a lot of money every day. Euro loss forlion the next 10 days. The final situation is very weak. If the strike last for a very long time, probably next week we will have discussions between top management and labor unions. This is only a way to keep [indiscernible] what does that say about france . You sense that the french government would like to get involved but it is trying not to. It has a little bit. What does this communicate to the world about French Business . All, it is very toficult for a company reform and change the situation. This strike is a symbol of corporatism in france. It is a way to keep privilege for some people in the company. Might not know [indiscernible] it is a very bad message to foreign investors. As we saw last week, the government cant influence negotiations. It is trying to not give too much. I am pretty sure the government tried to push for the end of the strike because it is a bad situation in france. In what sense does this act as a significant change for the airline . You are looking at a business that needs to figure out how to compete with ryanair and easyjet. Done, what can management due to deal with that threat . What can it do to make this airline profitable . Unless it wins, its options are going to be very limited. Exactly. The situation is that air france is not profitable. If we didnt have the strike, it might return to profit this year. As we can see, it is not in that situation. The big problem for air france [indiscernible] it is not a failure but it is not enough to be competitive regarding ryanair. Strategy implement a to create a new project. This is very important. The big problem for air france is the financial situation. Losing money is not good for an airline. Even if the government is part of your shareholders, it is never a good situation. I am not very confident about air france surviving in the next year. It might be very difficult for the company. Last question. If you were a ceo, would you be going down to your travel team and saying, we cant deal with these guys anymore, we need to get our business back on track, lets talk to easyjet. Is that what you think is happening in businesses up and down france . Is that what they are doing right now . Yes. Negotiate,ying to they try to have the support of the government to be in better shape, but they are negotiation negotiating with other Companies Like easyjet. It is very important for air france to get into a talk with those companies to find an agreement. It might have a lot of job cuts in the coming years. It is crucial for the company to survive, to end the strike very project,implement this to have a local subsidiary, and to negotiate with local companies to find an agreement to be more competitive. Christopher, thank you very much indeed. We are going to take a break. Still to come, making waves in monaco. That is coming up later here on the pulse. Welcome back. You are watching the pulse live on bloomberg television. We are on the radio, streaming on your tablet, on your phone, on bloomberg. Com, on the markets where Jonathan Ferro is. I think the word you are looking for is stabilization. We had big losses yesterday. Losses have stabilized on the ftse. On the week, down over 3 . Dax stillankfurt, the trading lower, down by 0. 1 . Selloff likea big yesterday, the temp tatian is to start blaming everything. The macro side and the corporate side. On the macro side, the data has not been pretty. Business confidence in germany trending lower. Consumer confidence lower. The ecb can do their part. German business is just not buying it right now. Some big moves on the corporate side of things as well. You look at de la rue. When a company that prints money is struggling, you know there might be a problem in corporate land. De la rue down 27. 5 . They are citing market conditions. Not just in the Currency Division but in the Security Division as well. Epassports. This stock taking some heat today. Plenty of moves in the fx market as well. Eurodollar, quite a week. It drops through 127 yesterday for the First Time Since november 2012. It is a mix of the data again. The data and the expectations that the ecb is going to do more. Dollaryen going higher, up by 0. 3 . Inflation numbers out overnight. Not pretty when you trip out that sales tax hike. I think there is a lesson for the likes of europe when you look at japan. Inflation, a, economy still struggling. We will talk about that later. We are also going to talk about ebola. Welcome back. You are watching the pulse. I am guy johnson and these are the Bloomberg Top headlines. Ukraines president says the worst of the war with prorussian separatists is now over. Ukraine is now focusing on elections, securing gas and preparing its bid for eu membership. U. K. Prime minister David Cameron will Tell Parliament that the Islamic State extremists pose a direct threat to the united kingdom. He called for emergency votes on whether to join the u. S. Led airstrikes. According to officials, british strikes may start within days of and approval vote. Ankish fighters are battling advance by Islamic State in northern syria. Tens of thousands of kurds have fled while others are heading to join the fight. Airstrikesfollowing by the u. S. , saudi arabia and the United Arab Emirates in syria. Sierra leone is the latest country to expand its battle in as the death toll in west africa approaches 3000 people. Health experts are warning of an epidemic. A vaccine developed by glaxosmithkline could potentially prevent that. Joining us now on the phone, john pender. Thanks for taking the time to talk with us this morning. The quarantine story has been one that we have been focusing on. The authorities have been hoping that will work. What difference will a vaccine make in the fight against the virus . Good morning, guy. A vaccine for ebola like any other vaccine, we hope if it proves to be successful in the early stage trials, will provide protection for a period of time for those people on the front line working on ebola. Longerterm, perhaps to provide protection for the community against the disease. We are quite a long time away from proving that yet. In terms of the science, how tough has it been to get to the stage you are at now . How much have you had to put on it and, walk us through how the process started, the calls you received to get it going. Virus has been known since 1976. All the previous outbreaks until the recent one have been controlled by traditional means of isolation natural outbreaks that have just died away. This is the first time we have seen an outbreak which has got roots into the urban area. This is the first time where ebola has really hit the public profile as a disease which the Global Community needs to focus on care if that is why we have accelerating the trials of this particular incident. We have been working on this vaccine for a couple of years have wethe acquisition o made a couple years ago. It has been fast tracked now because of his current outbreak. Is this a zerosum game . Are you taking resources away from Something Else . It is a zerosum game in not have a huge amount of Spare Capacity in our r d pipeline or our manufacturing portfolio for vaccines. Vaccines are a growth area for us and for the world generally. That is why we have needed to find new ways of working to develop this vaccine so far, which is why we have created this consortium with the u. K. Department for international development, the medical Research Council and a number of academic institutions, to ensure that we bring more resources into the situation and prevent it being a zerosum game. Through work our way the process of monitoring, hoping to find a solution to this outbreak, initially, the protocols were containment. That was the strategy. Do you think lessons have been learned for future outbreaks, that there are lessons we can learn from this, that viruses are a problem that need to be dealt with with a vaccine . I think what we have learned from this outbreak is isolation and containment is still the best way to control this disease and other viral outbreaks. Procedurese, those were not followed quickly enough and the Health System in the country is so fragile and them inle, many of conflict situations, they werent able to cope with that basic method of tackling the disease. Now, what we have seen from the u. K. Government and u. S. Government to build isolation wards and hospitals, we are still in a situation where we are probably 2000 beds short to really follow that strategy of containment and isolation. In that environment, certainly there is an increasing need for vaccines. We have to remember that this is a unique riskbenefit situation in terms of the threat from ebola and it fully justifies this fasttrack approach on developing a vaccine. John, a pleasure to speak with you. Jon pender joining us from gs k. Lets get more company news f