Good morning. You are watching the pulse. We are live in london. There is news on the issue of scottish evolution. Fei company is going to assume a range of new powers, including taking control of income tax in scotland. A live event could be taking place shortly from the museum of scotland and we are trying to find out when it is going to start. It could start in the next few minutes. We could see income tax raising power and this is a big they for the United Kingdom after the scottish vote did not go towards full independence. That almostg move takes us in the direction. Meeting of to the the Oil Producers getting underway. And ryane collapsing chilcote is inside of headquarters. Could anything make them deviate from the plan . You never know. They surprise. I would say one out of every six meetings. You look at the price of oil going into the meeting. Investors do not think they will cut. You thought they were going to cut, you would think oil would go up and you would want to hold it. Investors have been selling like there is no tomorrow. We heard from the minister yesterday and he thinks the prices will stabilize. Have a the countries united position. We have not heard the countries crying for a cut. The comments suggest that, in fact, we will not get a cut. You never know. There are countries that have been calling for a cut. It has quieted down in making demands. Following their rules and having a symbolic cut would have a huge difference in supply in any case. I sensed they lost the grip on the oil market. Was that holding up this morning . I think they believe they still have some relevance. The look at what is going on in , they have at supply glut with emerging producers in the United States. I think they think that, if they are united in allowing the price to fall by not cutting, they can shake some of the producers out of the market and out of the business. That is when you hear them talking about prices stabilizing and what he is inferring. You get the american producers , in a business fashion, will take care of itself . Take care of itself. Thank you so much. He will be trying to get all of the breaking news and we will bring you the decision here. There is news on the issue of scottish evolution. We have just seen that lord kelvin stepping up to the podium and the latenight negotiations are picking up towards an evolution of power. I can see the audio in the background. Lets listen in and see what he is saying. To put it mildly, the process was difficult. Put aside the longterm goal to Reach Agreements. Difficult, leaders come together and Work Together to Reach Agreement with one another despite the tough negotiations. Will deliver improvements. As a result of the agreement, the parliament will be more powerful and accountable. And, more a time this. The details of what had been , the recommendations are explicitly designed for strength in the Scottish Parliament and objectives. It will result in the biggest transfer of power to the Scottish Parliament since the establishment. I will list some of the new powers. Well have a parliament that is more accountable for the effects of the decision and the resulting benefits of cost. The composition of the income changed. There is more spending coming in scotland and the remainder is coming from the u. K. Government. Givenrliament will be increased borrowing powers to support capital investment. The parliament will continue to be used. It will be agreed by the scottish and u. K. Government. Neither the scottish nor u. K. Governments will lose or gain from the transference of power. Taxation, theon parliament was given the power to set income tax rates and will retain all of the income tax raised in scotland. Havingliament will be duty. The new powers will create an andic this parliament will be made will be made permanent. The election to the parliament over 16 and 17yearolds to vote. All of the parties have called on the government to develop this in time for the parliament elections. People to join us here today who will be pleased by the change. I think there are few people who vote after seeing them add so much to the referendum. Last, i want to draw your attention to other powers. Benefits tos u. K. Support people and powers to create new benefits with discretionary benefits discretionary payments. To help the unemployed back to work. A wide range of powers, including responsibility for measures to improve household energy. Ofer over a wide range tribunals. A clear scottish voice will have ensure thend with the u. K. Ter position inside of the European Union. On what wasuch reached. Throughout our work, we have been supported in the Scottish Government and the u. K. Government. The lowest governments discuss the proposed change. That some of the recommendations will take time to come about and some will require further discussion. A change of this magnitude cannot be rushed. Ofant to mention the value the public submissions to our work. I can assure you a big input in a material way with the agreement we reached. I would like to go further and champion the issues raised. Let me be clear that these are my recommendations based on submissions supported by political parties. Believe it is in newport and complement. Is a strong desire with a transfer of power to local communities and the Scottish Government should work with local authorities to set up ways to benefit from the powers of the Scottish Parliament. Second, stronger parliamentary oversight. Theresponsibilities mean oversight of government will need to be strengthened and i would like to see the officer who i am delighted to have today build on important work with reform. I recommend that an inclusive review of parliamentary oversight makes recommendations implemented ahead. Third, improved governmental work. Of week a question intergovernmental working and it needs to be improved. I recommend that the Prime Minister of the United Kingdom and the first minister of scotland need after the details have been figured out. Last, the challenge facing both parliaments is a weak understanding of the settlement and i recommend the Scottish Parliament residing officer and the speaker of the house of common improves oblique understanding of the constitutional settlement. I have no power to bring about the recommendations. They are pragmatic and carry. Support in parliament and beyond. Voted andt everyone it has a few about the result of the process. Some believe it has gone too far and others, not far enough. The role has been to broker the best possible agreement eight on strong and clear principles. I have i have never thought to change the nature of the outcome. Entered without political affiliation or publicly stated view of the competition the constitution and in tend to leave it that way. This marks the end of my role in the commission. To responsibility now passes the United Kingdom and Scottish Government. I will not play an active road. An active role. I will see that these take place and i would like to say a few words about the people who brought the agreement together and the nominees from the political parties. To have thiste group and expertise with people who have led their parties. And have experienced life build bridges. I was pleased to have the skill. Themselves and fought hard for the positions. There is a need for compromise. We could be having a go at each other and laughing with each other. That is important. It is important. I realized a love for scotland and a desire, despite the differences. I am indebted to them and would like to give my thanks to them. Museum of scotland feels like an appropriate place phasech an exciting new in the life of the parliament. It was a venue for the signing. There has been water under the bridge since then. Believe the package of new powers will open up another chapter that is more powerful and accountable. Thank you. Johnld like to call on sweeney to say a few words. We will leave their following the announcement of recommendations for income tax and i think this will become a central theme. The general elections will be next year and some argue this is the evolution to a back door income tax. We will wait and see what the reaction is to all of this. The announcement will have a Significant Impact on the build up to the general election. Decides and the world waits. We will discuss the consequences to the cartel. Ferragamo opens a shop in moscow. We will have an exclusive interview with the ceo. Welcome back. We are live with the top stories. Vienna. El is meeting in crude has dropped. Joining us now within outlook is the head of strategy. Is it a done deal . We have heard there is no cut on the table. Been mounting skepticism on these comments and of being the technique very cryptic and allusive. I do not think he is giving away the outcome of the meeting before the meeting. In terms of market sentiment, it has shifted. Cutelieve that opec should because it is in their best interest. So, we will see with the meeting brings. Lets assume there are no bunnies and nothing happens. You get the surplus. How much of the surplus is priced into the curve . It is an interesting question and the oil prices have been moving slowly. Our view is that we will get another and it will be more volatile and brutal. Role asrfeiting the swing supplier. It is up to the proverbial invisible hand to take care of business. This, cartel wants to do it is good. It is russia and the u. S. This is almost like a staring match. You could put it in who is blinking. There is one possible scenario. If they do not cut and they are taking the market that is, are we the idea getting a situation where prices will have to fall to exclude the marginal producers . Participatingssia in meetings with keep oil prices, the economy is hurting from sanctions and they would like to see opec do something. The average price of oil in 2015 . It is tough. Priceslooking at rent averaging around 90 next year. If you do not get a cut . You can take 1015 dollars off. Nothing lower . You will have an overshoot and it will eventually creep a little higher. The curve is trading between 80 and 90. They could return to those levels. Sale was an oil producer in the United States. It is a wide range. If you go anywhere between 60 and 90. Maybe 90 of shale in the u. S. Is cash positive. You will find acreage that is cash positive. Producingys that are in the u. S. Are often hedged. No matter where the price goes, the production is sold. It is a long game. If they are in the game that is anyones guest. Theoure talking about emerging markets. More affordable than last year. Haveu have been you feedback and it could stimulate the economy, relative to the forecast with 3 in World Economic growth. That could help support the oil prices and feed demand. How a lastditch is demand . Not that a lasting. In terms of energy bills, it helps. This is not necessarily a positive outcome. Guest and he said they do not have to do anything revolutionle gas will be shortlived. Is there any truth in that . Shale oil and gas is here to isy and the other thing people addressing issues of supply and demand and looking at the production as the dominant feature. The United States cannot export crude oil. They may keep on producing. The oil is not available to the rest of the world and we do not have a perfectly elastic Global Supply curve. The only way to benefit the rest of the world is to import less and that is not a simple proposition. They got rid of the easy part of foreign oil. Of what the u. S. Refining system uses on the gulf coast is crude oil. Not the kind the u. S. Is producing. Thank you for that. We will have to wait for the meeting under way. We are just getting a couple of headlines from David Cameron. The minister is responding to the story about scotland. Recommendation comes and David Cameron is delighted with the report. An interesting word, given the political backdrop. He went to twitter to deliver these comments. Interesting. The russian renaissance. We are talking russia in a context we have not in a while. To the ceotalking next and we have a great story about apple raising prices. I wonder about the thinking. You can continue the conversation. We will see you a couple of minutes. Welcome back to the polls. I am guy johnson. For bloomberg exclusives. Celebrating the reopening of the flagship store. In thehion label ambiguous market. Talking with us is the ceo. Great to have you on the program. It surprise a few of us. Has concerns with the ruble. Before we could predict what was happening in the region . It was part of a plan. In a couple of weeks, we will store andh larger moved to a larger premises. We believe russia is an important market for domestic consumption and for international consumption. Any investment you make is reflected everywhere else in the world. From europe, china, even mexico. We believe in the longterm for is beautiful. We see a positive move. It the case that the russians are traveling less as a result of the following ruble and because of the sanctions . They will spend more at home, rather than doing it in the dutyfree salons of the world. I would say that. I have been looking at the numbers and the russians are traveling a lot. Turkey and egypt. And, consumption in europe. It is the target and spending has gone down. Time, i see consumption on the domestic 5 . Et at 80 80 there is an opportunity for domestic markets and we hope the mood will improve with sanctions hitting economically. I would say some of the consumers. The feeling is improving and we are confident. If the rublens starts rising again . You are talking about the way the russians are changing their travel. How are you positioning your self for when the ruble starts rising . Prices asto keep stable as possible and we do not when the currency takes a long and, at the same time, we hope ruble and oil go of. I did not want the oil prices higher. We will stabilize again. A similart, we have price in europe. It is becoming more competitive towards american or european markets. It was curious and interesting. Of the iphonecost in russia and you feel no need to do that. You think the pricing comparisons remain stable and that you do not need to raise prices for goods in russia . No. New ones every season and every 45 months. Time, we try to keep the prices and i was coming out of a opportunitys was an to the markets. And thisll very high is one that is penalized by the duty and it is important that the price level is similar everywhere in the world. Can you give us an idea of what you think russians are buying, at the moment . Are they buying some more highend exclusives . Is it womenswear or menswear . I was checking this morning because i travel a lot in asia. It was in russia and for women and men. We are a company with a core is strongest at this moment. More hedge products, shoes and special things in moskal. They are sophisticated customers outside of our domestic market. You, as can i ask you put a store together and is it done in russia . Corruption is a big issue. You are well respected with an impeccable record. How is it to operate in russia to get rings done . We have a person working for more than 10 years and we do not need that. Is in russiaterm and st. Petersburg. And the plans are realized sometimes slower. It was more than we really expected. I see development and we have and a from st. Petersburg potential with it being nice to see more investment. This is something that is ms. King something that is missing. I hope, in the near future, there will be more opportunities businessf moscow and has been a little slower than expected. Even slower. Ina, backwant to take a step and ask you what you are worried about outside of russia. Is europe a big challenge for you because of deflation . I would say europe is moving in a logical way. Consumption is going slowly. Was number one and you have a lot of different nationalities coming. It more than compensates and, what we see is extremely important. Still growing at double digits with more opportunities to open new stores and still growing tax percent worldwide. It is a huge number and i think that europe, of course, has new openings in copenhagen. There will be opportunities. Not many. Ok. That sounds really in. There is a weakening euro. Will that have a Material Impact on the bottom line . Term, you seet the impact on the revenue ofause we have a time frame 12 months. In 2015, if the dollar hopefully stays where it is now, it will positively impact the top line and the bottom line. After june andws july. It has been strong and we look forward. Forecast,s of your what level do you make them at . I cannot tell you. Month, seen, in the last to be reasonable to work with the present Exchange Rate to look at the future. It could possibly go even stronger. It depends on Central Banks and andnpredictable social geopolitical events. We are on fronts where we were four months ago. Thank you so much for your time. Europe in arom bloomberg exclusive interview. We saw a big rally this morning. We will talk about the estimates and where the company is going. Another exclusive is coming up in germany in just a moment. Welcome back. Live from london headquarters. Getting ahead. A series of incidences include the killing of four rabbis and a synagogue. Is what we are concerned about. Elliott gotkine has this report. Souvenirs in jerusalem for 40 years. He has seen palestinian uprisings. Everything is bad now. No business here. Terry lytle. Day andto make 1500 a now is lucky to make 300. Sometimes, they close the roads and are afraid. Smolderingm has been since a palestinian teenager was burned alive in revenge for the killing of three israelis. Recent attacks on gaza have tourists and locals. Many stores are closed and shopkeepers say the trade is the worst they have seen. We saw one small tour group. Of the business can you save . 95 down. The market is empty. Every day, like this. To have seen sales drop by as much as half. There are people in the markets. People are scared in the markets and there have been attacks here in the past. Not good. Annualofficials hope the long winter night cultural will have people returned to jerusalem. Many traders are losing faith that things will improve anytime soon. Elliott gotkine, bloomberg. It is time for a bloomberg exclus