Straight to our top story. We had a little bit of breaking news. This is manufacturing pmi, it has risen and pretty much in line with expectations. Showsng above 50 expansion. It is the story of divergence of what china and china is doing and put on the table. Stimulus. Uch more every piece of data from the eurozone is important and has the potential of moving the euro up. Lester on the euro. The manufacturing pmi not as bad as expected, pretty much in line. Our top corporate story, a deal for digital. A 3. 7 billion dollars purchase of an american attack copy an american tech topic, sapient. Guys, thank you for joining us. Matt, let me start with you. Previously, wanted to buy another company and it fell through and they are going with sapien one guestt said it would. Begreat for digital and they always wanted to be in the Digital Space and that is where they are the weakest. To get backeffort on the front of foot after this deal fell through. A couple ofouple tough quarters and they need to show investors, and competitors who have been snickering behind its back it can still be aggressive and make deals and innovate. It is what we are single which a deal for sapient which is Digital Agency with a big footprint in the u. S. It seems to say it is good faith. They had differences of ideas of how to run the space. How much do we know about sapient and will it be a good fit in terms of the customer that they can attract . Incredibly bold move if you consider what they were going to do with omni, 82 big Company Coming together in the old world. Sapient has fantastic companies. You go from the mega brands like cocacola which everybody was to work with two exciting brands like elephant away group the fenway group was that you have a good mix of customers here. For a change of strategy, it is quite dynamic. To rely said they cannot take on google and facebook when it comes to scale and negotiation and it would not have happened with omni,. They need to get smart and by somebody who can help you with the data and analysis and that is what they are excited. Are they not a little bit behind the curve . When they talk about the need to analyze for quite some time. Isthey are behind and that why they are paying a hefty price. A premium of a billion dollars or more for a company that has risen quite dramatically. It is a bold move and although we might see it expensive today, if it works out, we was a very cheap in a couple of years. Legacy is maurices after the last one did not work. Fewe are on quite a legacies. Alexi 4 or five. He keeps saying is going to retire but he does not. Announced his obsession plans. His plan is to be around 2018, which is a very long time. Hise has announced retirement plans. The problems they were about is google and facebook. That is to the competition is and that is how you have to view these acquisitions. Are we going to see many more Digital Deals . I think it is a good bet. We run one of these midsize deals every six months or so. We had aegis. Its a safe assumption we will have more. Nick, is that a fair associate . Digital is everywhere. What were not talking about is the mobile side of this. How people will get onto mobile devices . We are seeing more revenue coming from this. They are finally going to the hold in the world which is ever more important. Is it learning lessons in bringing back some of the knowhow to their older platforms or is it a company that will leave a load . Would have been listened to the Conference Call it now and catch up with it Conference Call now and catch up with it. They said we will keep a separate and we wanted that magic that will be there from sapient to continue. Dev only talked about cost savings of 50 million which is not much. What they are doing is taking some recognition from the fed you cannot integrate. Is so much about the people and creative. It is an essential move to keep the departments and the magic through those people. Costsavingabout but attracting new customers which they struggled over the past couple quarters . Is about building the Customer Base and also about building the knowhow. You do not have to do these things for costsaving in the ad world. Theres a long history in the Advertising Industry of leaving these agencies along, all of the be ad companies are really holding company. They have had a long experience with these agents is that they acquire. You do your own thing and tells at the end of the quarter how you did. That appears to be a model. Do you lose accounts because you are not digital or you are attracted new customers . Toi am cocacola, do i go one person to say i want to be big on social media, or is it part of the bigger cap at . It has been happening as there is a breakdown of the accounts. You have one internal agency going to a number of different credit partners. In the old days, you go to your credit partner and a parcell it out. Crated is integrated campaigns which covers so many different types of social media. What we are seeing is recognizing that they were never going to get all the business from a company with dr. That angle. It will certainly be for them a strength in their boat to say lets get their full spectrum. I do not think anybody is going to give anyone company all of their accounts. It is to get more of the share of wallet. If you look at it in with that much more digital m a, who is next in line . I know it is impossible to say. Will there be another acquisition by publicis because they are lagging behind . Theres another interesting question in addition which is whether we see longterm consolidation and in the ad space itself among the big Advertising Holding Companies . Theres a lot of tart and theres a lot of talk after omni and perhaps they will try to merge with interpublic in the u. S. And one in japan that has done their deal and they are still out there is another big ad agency. There are two questions. Who among the large players could be acquired . Big Holding Companies in which there are four or five going to say stable . Most people say the answer in both could is probably, we will see some of those activities picking up as it becomes more critical to build scale and the technological platform. More to come from publicis . Now. Not for it was a lot of money even for big company. We are on legacy number cointreau and maybe we will get a legacy number six. And seven and eight. Matt campbell and neck nick hungerford. Chinese surfaces data shows signs of a slowdown. The pullback will test of the governments determination to pull back a more stimulus and they are headed toward the slows want true year growth since 1990. The u. S. Supreme court where her argument indicates that will let as many jerusalem born citizens have passports and designating their place of birth as israel. The Obama Administration said under my is a longstanding the state Department Policy and is not taking a position. The citys eastern part posted lower than estimated offense. Posted lower than estimated profits. They are europes largest bank by value. Still two come, a conversation conversational with events cable. A conversation with events vince cable. Investigators say the engine of the Virgin Galactic spacecraft that crashed was intact with no obvious signs of damage. They say the system a spaceshipt deployed early. One pilot was killed no one was injured. What have learned so far . Conferencele press was about something called feathering. Richard branson himself explained it in his blog. It is effectively like this process that allows the spacecraft to slow down when it reentered the earths atmosphere. It worse is that same way and crates a bunch of drag. What we know and what did they discover is that the mechanism opened twirly. How opened too early. Have a listen. 2 in normal flight in these that extent that are referred to as feathers. After the space vehicle is launched and goes up to be apogee returns to the atmosphere, the procedure is to move the feathers into a position where the entire body rotates in order to great more more drag as it reentered the atmosphere. Favre in a nutshell. We know the fuel tanks, the images that were suspect, a lot the engines that were suspect , those are intact would suggest the problem was not there. When it comes to feathering, there are two things that have to happen. One is the copilot has to unlock and that was done. The second is that have to manually press and give the goahead for feathering to take place. Moscow one and it was posted be mock 1. 4 and that was too early. Does it mean that was human error . They say it is too early. It is interesting that will learned so far. They said is a statement of fact and not cause was done cause. We heard from Richard Branson that he is till interest in Space Tourism. Have we heard from him in the last two hours . Talking to someone in charge of being the independent for many years. He said, this makes me angry because the bottom line is that the commercial space industry has been resisting regulation and today have not been very transparent and the Safety Standards that they are applying. Redundancy, triple redundancy and it looks like and 2is case if there were only step levels of redundancy. Does a mean and they end of commercial space activity . The people bought the tickets willis lower down . Will is slow down . It seems likely. The people who bought the tickets are going to have to wait. We heard there from Richard Branson over the weekend and they will not blindly go forward. He said they will go forward if its fixable. It will take time. It has been a while for space began 13 years ago when a guy went to the International Space station thanks to the russian who took him up. I was there. There is a lot of demand for commercial space activity, not in just taking a highflying a supplementrists and provide nasa with new resources. Isnt the first major setback . There was more earlier in the week and they are mounting. The fact we would launch into space, Space Tourism as early as next year, i think it might be fanciful at this point. Ryan chilcote staying of the story and well be following very closely. And profitss off soar. We bring you our interview with the ceo when we come back will stop come back. Welcome back to the pulse. Airlines and on to the lowcost and high. Raised its profit go for the second time said the economic slowdown is working in his favors. They have a new strategy for winning over the middle market and thats being nice. Michael oleary, the ceo, spoke to us. It is a reinvention. We have one of the price battle and a price war. The prize pedal and price war. We want to provide people with a better experience. We discounted prices for children traveling with the parents or business product and will want to move into the middle market. As we get a nicer and nicer, we are finding more of the customers are increasingly saying yeah, lieutenant ryanair. How is staff taking it . I am not saying they were not nice but it is a bit of a shift. It is a shift. The people that wanted us to do it most is the staff. We put our staff in situations of conflict far too often. Wilson were ending the conflict and will not fight over you because the bag is and is too big. It is the reflective and complement the letters from customers how nice the people are and however for sure the changes are. It is working. They are coming back for better customer service. Stepping it up. Compared to last winter, how much more flying . Bywith spec traffic to rise about 16 , which is a huge growth in the first half of the year. This demand for ryan air across all markets. 60 travel growth and would expect the fares to dip. Over the fouryear, the travel will rise by 9 . Profits will rise by about 45 over last year. Olearyes michael talking to us on why his company is so great. Other company news. They are swapping liquor brands. Its fit percent of ju is giving its 50 of juklio. [indiscernible] monte is expected to raise capital for the shortfall identified during the ecb stress test. The lender is ruled out taking state funding and has done that twice in the past five years. A binding offered to buy the Portuguese Telecom from brazils oy. The offer is worth 8 billion. If successful, it would unwind a merger. The markets. N on Jonathan Ferro joins us with the latest. The divergence. When readinge pmi, of it. Italian pm im, a significant disappointment. If you look at equity market, a disappointing start for this monday morning. Ibex dipping into negative territory. In the untied benchmark down. The ftse down by 0. 3 . Last week, the stoxx 100 up. You look at the massive red and you will notice a bit of green and it is ireland. I will show you why. I wish index is up. You did in and a company youre talking about, ryan air. Digdid in and it is in and is a company youre talking about, ryanair. A huge lift for the fullyear outlook. The approach of ryan air or is efforts thatof have bitten into profit that has helped his company . Ryanair is looking into the beneficiary. I look at sterling. 5977. Ound buys you 1. Ahead of manufacturing. Not manufacturing, u. K. Manufacturing, not a big part of the economy that in the spotlight. Sterling, the uncertainty of the u. K. s membership in the eu taking a different dimension and the german press. Angela merkel signaling pushes looking it as something that might happen. The u. K. Added towards the exit door. Why we are opening this up, why the u. S. Does u. K. Government is crating this uncertainty. It resonates with the British Public and they are leveraging. That is why they are doing it. They are saying it is bad for business. Good stuff. The very latest on the markets. The first day in office. What is topping the agenda and also, attention jet setters, planning and the hands of a modern traveler. You can follow us on twitter. We will be back in just a couple of minutes and we have a really packed showed today. The pulse continues in a couple of minutes. Will come back to the pulse. These are some of the top headlines. For the first time, the german chancellors was concerned that u. K. Might hold cameron promises to membership. The former bank of america employee has appeared in court in hong kong charged with the murder of two women. It were found in an apartment. Officeout of the indefinitely. The engine ofsay the Virgin Galactic spacecraft that crashed was intact with no obvious signs of damage. The Defense System may have been deployed early. One pilot died and another was seriously injured. Takeull investigation may months. We are a long way from fighting cause. We have months and months of investigation to do. There is a lot that we dont know. If we have the resources to go through. We have some raking u. K. Data. It is much better than expected. It is common up for the month of october at 53. 2. Anything above 50 indicates expansion. 53. 2 is an impressive figure. Inufacturing in general terms of gdp is not that big of a chunk in terms of the overall economy. U. K. , theth the european exit for the u. K. Is being talked about. According to a report, the chancellor is concerned that britain may exit the eu. Book aboutote a angela merkel. How serious is this . Up as been building while. You have to deal with the starting point. She wants the u. K. To stay in the eu. She has reached out to David Cameron on the multiple times over the recent months to try and make that happen. This immigration issue has turned into a problem for her. That now with this morning she is trying to draw a line of how far she is prepared to back the u. K. Government. Run me through this. We talk about a possible british exit being a disaster for all of europe. She is interested in keeping the u. K. In the eu. Up week as iis will do everything to keep you inside. Not at any price is basically what she is saying. She has hinted at this before. This is causing the latest quite a stir in the u. K. Merkel has of writing factors to consider. As much as she would like the u. K. To stay in the european union, she cites arguments such as the uks free market tradition being important to the eu as a whole. She can only push that so far. ,isnt in the report she doesnt want to be seen as promoting an antiimmigration agenda in europe. How does this fit into her broader agenda of trying to build up germany . About germany. T i think she is interested in keeping the eu together as much as possible. Were going to have a referendum catalonia. We have the referendum in scotland. Reasons,s economic she wants europe to Stay Together read she has said this very publicly. She argues that europe can only be strong if it holds together. That sounds like a stereotype or a cliche. I think there is a real element to of truth to that. , there is only so far that she can go in backing David Cameron. Thank you so much for all of that. Tony is in berlin. He is an author of a book about angela merkel. Also weighing in on the debate is vince cable. He spoke to Jonathan Ferro last hour. I am concerned when people start raising these issues. Of view of the International Business community which is investing in the u. K. , they want to have certainty. In of the key certainties recent years is been knowledge that we are members of a Single Market and if they put their factories or offices in the u. K. That they will export goods and services to the european union. We have had anxiety expressed by investors in japan, china, and elsewhere about our future. So far, it has not affected our membership. They are increasingly toxic in nature. Immigration is making this more difficult. Just a small point. To there giving lectures scots for wanting to leave and now they find themselves in this place as well. It is a contradiction. The conservative party thinks that the eu is beneficial. They have a problem with this being a clinical football. They are in a battle. Thats what this is really all about. It is about getting reelected. That resonates with the electorate. Had you fight that . You join the party. This is a problem that everybody has had. You do something to fight fight the more extreme parties. Do we have any polls . If we were to go to vote now, would we ex