Good morning. You are watching the pulse. We are live from bloombergs European Headquarters in london. We are just getting some german ifo data. That number just breaking on the bloomberg terminals better than expected. The figure came in 104. 7. We had a forecast of 100. 3. We will dig into the details and find out exactly what is going on here. Concerns surrounding the european economy at the moment. We have seen a significant move in european bonds. The reason for that may be more to do with draghi than what we were expecting from the ifo but nevertheless we saw a significant move. The spanish tenyear going below 2 , the first time in history. You also see a significant move on the italian 10 year. The french 10 year as well. We are seeing records on both of those. Ecb effect ise large across the european economy. How much further do we go . That is the trillion dollar question, one that we will put to hanswerner sinn in a couple minutes. Discovered has been by symantec and is thought to be developed by a nationstate to spy on people and companies in at least 10 countries. Here with more is caroline hyde. It has been used for quite a while now. 2008 is how long this was being used. Symantec ising that a Security Software maker. We know it for norton. 2008,ms as though from this is a new Malicious Software that is being used in 10 different countries. We understand they have been used for surveillance, for intelligence gathering. The infections were across a variety of organizations. Withdrawn and seems to have resurfaced since 2013. Caroline, talk to us about being targeted as a result of the software and house sophisticated it is. If you are looking at countries, two countries keep rearing their head. It is russia and saudi arabia. More than half of the attacks seem to have taken place in these countries. There are another eight on the list. India, ireland, afghanistan, iran, belgium, austria and pakistan. These are the countries where so far it has been seen. Largely attacking individuals and Small Businesses. Half of all attacks are on the smaller side. Another one third of attacks seem to be happening in internet providers and telecom companies. That is huge for symantec to be drilling into the data of individuals and Small Businesses. Quarter last bit, one seem to be happening across hospitality, energy, airlines, governments and research institutes. It is difficult to ascertain what this is up to, what it is looking for. It can be capturing screenshots, stealing passwords, ticking into deleted files, even. This is why they think it is actually a nationstate behind this. The level of capability, the level of resources that have been pumped into building this incredibly sophisticated malware which has antiforensic capabilities, which means you can hamper computer investigations, it is incredibly inconspicuous. It covers up its own tracks. It uses a custombuilt encrypted virtual filesystem that sounds complex, it is pretty complex. They tend to think this is a nationstate. They dont mention which one but many are already curious on twitter and across the internet, to beng that it is likely only a handful of countries such as the u. S. , china, israel. These are the countries that many out there are saying have the level of resource to channel into this. It seems to be one of the main Cyber Espionage tools used by a nationstate across 10 different countries. Caroline, thank you so much. Caroline hyde with the latest on this malware. Here is what else is on our radar. In vienna, International Foreign ministers are starting to reach a deal on Irans Nuclear program before a deadline tonight. U. S. Secretary of state john kerry and his iranian counterpart are discussing whether to extend the deadline as both sides say significant gaps still remain. An exception would be the second since an interim agreement was reached last year. European Commission PresidentJeanclaude Juncker is set to announce a 21 billion euro fund to share the risks of new projects with investors this week. That is according to eu officials. The fund would include loans, lending guarantees and equity. The commission will pledge 16 billion euros with 5 billion coming from the European Investment bank. Itsew york is extending lead over london as the worlds most important financial sector. 59 percent of respondents picked new york over london. That is a 16 point swing. Londons reputation has been hit in recent months by a string of scandals. Coming up, fifa under fire with another sponsor questioning the investigation of world cup corruption. Could there be a world cup boycott . That is the subject of todays twitter question. Would you consider a personal boycott over corruption allegations . Let us know what you think. We will take a break. See you in a moment. Welcome back. You are watching the pulse. We are live on bloomberg tv, on the radio, streaming on bloomberg. Com. We are on the case of the european economy. Lets get back to our top story. We need to go to munich now to talk about the ifo number. The data are better than anticipated. The downturn in the German Economy has ground to a halt. Lets talk to the institutes president , hanswerner sinn. Good morning to you, professor. Do we see a recovery from here or is the German Economy going to bounce along the bottom . Well, that we dont know. The line in the indicator for six months in a row. Now the good news is it jumped up word by 1. 5 points, which is quite a bit. We do have the rule not to interpret too much in such a move unless we have seen that three times in a row. Lets be cautious. But it is good news as such. Tax give us a sense of how you see i know the rule is, lets reserve judgment until we have a better indication, but the bunde thek seems to be suggesting economy go back home and the month of the year. Do you have the same sentiment . What happens next year . , this extreme p from of pessimism which we have had in the summer and a video for now. May be over now. Labornot forget the term market always was in very good shape. Firms wanted to hire new people he site the find passionate site the zipline despite the decline of the indicator. Only manufacturing was a problem but that problem may be solved now. German Companies Report that export expectations have improved since last month. Professor, i am reading that a lot of people are expecting to see a property boom in germany now. The simple reason for that is the money is incredibly cheap. And the ecb is going to make it potentially even cheaper. There is going to be a lot of liquidity. Would you expect construction to be one of the big stories Going Forward for the German Economy . Could be. We have had very good Construction Activity for the last four years. Of thely, because crisis. Before the crisis, german savers brought their capital to other countries. Now they have become very cautious and seek the safe haven at home. Gold, asa flight into we say. It seems that this process is going on in particular because the ecb reduced the Interest Rate further. That is only one of the drivers. The crisis is the main reason. Do you think mario draghi will deliver in the summer with extra tools . He seems to have suggested that now may be the time to act. Could be. There is strong opposition against quantitative easing in the directorate, in the council of the ecb, because there is the legal problem of whether it can buy the government bonds off of the separate countries the fed would not buy. The ecb wants to do a similar thing. There is a lot of dispute about these things. I dont know. Professor, there is an accusation going around that the isman economic story suffering from groupthink at the moment, that there isnt enough radical views out there that everybody is saying the same thing, that there isnt a big enough debate in germany about what german Economic Policy is doing to the rest of the eurozone. Do you have any sympathy for that argument, that maybe we need more radical voices . I hear that when it comes to the finance ministry, there is only one economist there. Is there only one economist . I doubt of that. While germany has a slightly different view than many other commentators, because we look at the problems of europe as a structural problem. Southern europe can be cured with more borrowing. We think it has a structural problem by being too expensive. The euro has induced a credit inflationarycame before the crisis. It priced Southern Europe off its competitiveness. Spain, for example, increased its prices during the good euro relative to the rest. That has to be reversed. This cannot be done with macroEconomic Policy tools by the ecb. , btpsspanish 10 year and the french 10 year all hitting record lows this morning in terms of the yield. What is the market signaling . That yougot to believe get a compression over bonds continuing. Everything is tightening up around europe. Market is signaling that we are in for low growth and low inflation. That is not the remedy for high unemployment. Im not sure. This is the macro view which you have. If the countrys too expensive, it needs deflation, real devaluation, to become competitive and increase employment. The truth is that one has to go through a difficult period of reducing the price level. Think of ireland, which in 2006, they reduced wages and prices and now they have this enormous surge in industrial output. So that is something which we have to see in the Southern European countries too. If we just pump money into these economies, that will never happen. Professor, i want to talk about russia. Were you surprised by the fact that germany has relatively shortlived pain despite all the acrimonious words we are hearing from russia . The russian the attitude towards russia is a little bit mixed in germany. The chancellor plays a hard card. The secretary of state wants to have a moderate stance. The german population at large is very nervous about sanctions with regard to russia. I think the majority does not like these sanctions. We are very close and we want to have peace rather than these tensions. It is very difficult for me as an economist to make an overall judgment of the politics. Very complicated indeed. Thank you so much, hanswerner sinn. Under fire. , fifa another sponsor questioning the investigation into world cup corruption. Could there be, should there be a world cup boycott . Welcome back to the pulse. Now, the football world cup governing body, fifa is under more scrutiny over its handling of a report investigating corruption. Major sponsor cocacola is now expressing concern over the investigation. Lost one majory sponsor, emirates airlines, over the controversy. Hans nichols has more from berlin. Could cocacola follow them . They might. What we saw over the weekend is that sponsors are getting upset is beingfifa is run. It all goes back to russia and qatar. The departure of emirates, you can kind of understand that. They are a rival of qatar air. Cocacola making noise is significant. Lets look at the quote that came over the weekend. The current conflicting perspectives regarding the investigation are disappointing. Our expectation is this will be resolved quickly in a transparent and efficient manner. We have to bang reports. Two reports,. The german judge in charge of all this has an investigation. After the report came out, after it was submitted, he basically said there is nothing to see here. Garcia came back and said, wait a second. That mischaracterized what i said. Now we are going to have a debate about this report. You have seen germans get ahead get upset ahead of the german football league. They had some pretty scalding fifa is on hpow running things. Then you have the sponsors. These are the sponsors, it is estimated they pay 100 million u. S. Dollars for every four year cycle. Gets about 350 million sponsors. You have the players turning against you, you may have the sponsors turning against you. Fifa may have some difficulties. We should bring guy in to have all the right football terms. Happy that you are calling it football. That probably is a big step in the right direction for an american. We will take that as a big positive. The simple truth here is it is about transparency. Why not just publish it . This is the great divergent. Just get it all out there. Is doing is saying there are legal reasons they cant publish it. Mr. Garcia has referred parts of it to a swiss prosecutor. In some ways, you can see an easy resolution. That is, they publish it all. Then there may be legal issues. Stay away from that. We have not heard the end of this story. In drips untilt 2018 and 2022. All right. International correspondent hans nichols from berlin. Lets move on and talk about some company news. Into has a sao paulo into has a sample hello speaking to the financial times. It will face some tough competition. , Credit Suisse and singapore are also expected to consider a bid. Petra faxed shares are slumping as the u. K. Oil and gas engineer is the worst performer on the stoxx 600. The company has issued a profit warning. It says that earnings next year will be 25 lower than expected. Samsung is planning to shake up its top management. Analysts are expecting a largescale change in leadership. Earnings are slumping and market share is shrinking. The restructuring, we think, will be announced next month. Lets talk about the markets. Aat we have seen is continuation of the reaction to what mario draghi said at the back end of last week. The hints that he may go further. Extrams of pushing liquidity into the Financial System here in europe. That is continuing to push yields lower and lower in the eurozone. What we see this morning is the spanish 10 year down by four basis points. Is takes the spanish 10 year yield from 2. 01 to 1. 97 . We havent been below 2 ever. That probably gives you a sense of the historical importance of what we are dealing with here. Btp is also under pressure as well. What you have to look at is the red and green. People are buying spanish bonds, they are buying italian bonds, they are selling german bonds. Not much selling but a little bit. In terms of the stories, the dollar a little higher. 1. 2396, not by much. A little bit higher. Coming up, the deadline for an agreement over Irans NuclearWeapons Program is fast approaching. Will a deal be done . A reminder, you can follow us on twitter. The question we are asking today is, would you personally consider a personal boycott of the fee for world cup . Let us know. Welcome back to the pulse. Im francine lacqua. Im guy johnson and these are the Bloomberg Top headlines. Asian shares rose this morning in reaction to fridays Interest Rate cut by the peoples bank of china. The hang seng index closed up almost 4 . Chinese 10 year bond yields also saw their biggest drop since 2008 on the news. The rate cut was the first for the Chinese Central Bank since 2012. The uks secondbiggest insurer is in talks to buy friends life. The takeover would be the biggest u. K. Insurance industry 2000. Up 6 . Life shares even more at the moment. Britains Lewis Hamilton has captured his second formula one world title. The british driver secured the crown yesterday. Hamilton overtook his teammate and championship rival with a blistering start and never looked back. Now, talks indiana aimed at containing Irans Nuclear program could be entering their final hours. Significant gaps still remain between the two sides. For more on the story, Ryan Chilcote is here. What do we know about the talks . Last night, john kerry sitting in the room with his iranian counterpart, their sixth set of talks in four days. The second time they have delayed them. That is when they started to talk the e e word, extension period the deadline is this evening. We also heard president obama over the weekend say he is not sure president rouhani maybe wants to do a deal. He said the real deal maker is the supreme leader. He also suggested the interim some positiveed results. In some cases, even rolling back irans alleged nuclear program. The question is, are we talking about a few days, through thanksgiving, that is one of the options, or are we talking about a several month extension . This morning, the talks continue in earnest. The Chinese Foreign minister has arrived. He has said he has a comprehensive plan to solve the crisis. However, there is a recognition amongst everyone that the stakes are really high. If they dont agree on something today, the longer the delay, the more difficult to get a deal. Back at home in washington and in tehran, those people are quite entrenched in their views. Across town everybody is gearing up for the opec meeting. All the action is in vienna this week. You are going . Ryaniranians chilcote is showing up very shortly. Oil cuts, iran, the pieces are beginning to move a little bit. The iranians according to an Iranian News Agency are going to propose a one million barrel a day cut when they sit down with the Saudi Oil Minister at a meeting on the sidelines. The only thing i will say is, it is difficult to imagine two countries that have marred difficulty disagreeing more trouble agreeing on anything than the saudis and iran. They vie for leadership in the gulf. The saudis are very skeptical speaking about irans alleged nuclear program. Areddition to that, they part of rival factions within opec. They have to agree on a supply cut before they get the other 10 countries in opec to agree. More and more, we are hearing talks that if there is a supply countries would like to see countries like russia agree as well. Quote fromo say, the the Iranian Oil Minister is one of the best ones i heard. He said iran wont decrease its share of the global market. Your point that opec is in such a tricky situation that they need the help of nonopec members, are th