The company sold 34,000 phones an hour every hour for the quarter. Caroline hyde has more. The growth is absolutely immense. It is insane numbers. 18 billion. That is 200 million a day. I the time i finished speaking apple will have made half 1 million. This is a phenomenal company. They beat analyst estimates. They wanted record smashed amalie have smashed them. Look at these figures. Bigger than yemens entire gdp. Bigger than icelands annual economy. Adding up microsoft and google it is more than that. They are dominating the competition. In fact, in one quarter they managed to provide as much profit as General Motors makes in a year. The growth is so phenomenal. 18 billion is 30 more than last year. The new product, the innovation is shining through. Iphone 6, the bigger screens are winning out across not only android wooing over more people from android, but also asia. The bigger screens are amazing. Steve jobs, four years ago, said they would never sell. Who would buy a bigger phone . Now you see the reversal. What do they do to keep the momentum going . Yet more products. What is interesting is how they stopped cannibalizing the ipad. One area of deceleration we are seeing, 18 fall in sales for the ipad. The reason is, if youve got a 5. 5 inch phone why do you need an ipad on top of that . Therefore, you are seeing tablet sales fall. We are understanding they are going to be posting them. Also, they deal with ibm. Getting more Business People perhaps being lured to the tablet. Maybe they can rectify the situation. Another situation is the strength of the dollar. If youve got more than half of your sales outside the u. S. When you bring that home, less bang for your back. We are seeing apple recognizing that. They are trying to offset the issue. In russia, when we saw the ruble fall, they stopped online sales. Sales are going to be hit to the tune of about 5 next quarter because of the dollar strength. It is an issue, but i think the unveiling of the apple watch in april is going to give 2015 all the boost they need. How much do we know about the apple watch . About 300 for the most basic. I paid 55 pounds for an ipad case yesterday. Imagine if you start getting an apple watch. You will be paying thousands. This is where they can be so clever. They can lure in those who would usually buy a luxury watch. They are going to be happy to spend thousands on the rose gold apple watch. You therefore get to track your fitness at the same time. They are managing to have enough designs to basically lure anyone in. I was a critic. I thought there were going to reinvent the wheel something so different from what samsung had put out. It looks as though they will manage to woo with not only a 15pound apple case, but also managing to expand up. You can specify exactly what you want. This is for emerging markets or across the board . We are expecting the iwatch to have phenomenal success and appetite in the asian markets but also in the u. S. And europe. I think what is such a take away for me is how they are managing to win china. The emerging Market Growth 70 growth in sales in china. They are unleashing 25 more stores. Next quarter, weve got chinese new year. That is going to be another reason. Carl icahn says, it can be worth 1 trillion. Caroline, thank you so much. That brings us to our twitter question of the day. After apples record quarter was steve jobs wrong . When asked back in 2010, apple launched their own, jobs said no one is going to buy a big phone. That is one of the twitter questions of the day. We tried to answer it with caroline, because it is selling. This is what they had to learn the hard way. Samsung had these bigger screens. It was asia that really liked the bigger screens. It is eating into tablets, and that is where i think the question is interesting. Perhaps steve jobs was wrong, but it has deadened the ipad. The milliondollar question. Every line some amazing figures. Here is what else is on our radar. Russias earnings last year missed estimates. The company is forecasting that revenue and profit will increase in 2015. Rcohe is the worlds biggest seller of cancer drugs. Jpmorgans fx traders gained on the day of the Swiss NationalBank Decision to scrap the franc ceiling. They also said citigroup, deutsche, and barclays suffered trading losses. The Chinese Government is accusing alibaba of lax oversight of merchants. The government says alibaba has a credibility crisis and is accusing alibaba of allowing merchants to operate without business licenses. Alibabas spokesman said the company could not immediately comment. We will have more later. Also coming up, greeces new government gets underway. Stay with us for more on what is on the agenda and why greeces first clash with europe may be on sanctions over russia. You can see live pictures of mr. Tsoipras meeting in athens. We have more coming your way on that story. Welcome back to the pulse. We are live on bloomberg tv and radio. Greeces new government gets to work as the Prime Minister alexis tsipras, convenes a meeting with the cabinet he unveiled yesterday. The first one may not be about the greek debt. For more on the governments first day in office, lets go to markets in athens. We are seeing live pictures. Mr. Severus mr. Tsipras addressing his cabinet at the moment. Tell us what we know about the members he has appointed. Tissipras was elected on a promise of radical change for greece. Every indication is that he is going to stay true to that word and take policy in a radically new direction. Hes addressing his government members so far as we speak. On the way into that meeting, a few minutes ago, the labor minister said that he was going to imminently, the government will increase minimum wage and reverse a lot of the policies on collective bargaining. The abolition of these rules that were brought about in the last years. This was one of their key campaign pledges. They are staying true to their word. Other similar statements weve heard from ministers to halt monetizations of several Key Companies like the state Electricity Company and airport. What we are seeing so far is pretty much what you might expect the governments of radical leftists with a sprinkling of ministers from the right wing independent groups would look like. Give us a sense the markets have reacted badly. I think there was a general sense that these radicals may have become much more pragmatic. Is there a sense that they are not going to become more pragmatic because of what weve heard so far . It is very early days. What we are seeing so far is a government that is showing that they want to govern on the basis on which they were elected it came out that they were going to form a coalition with the independent greeks, instead of the more centrist party. That was a bit of a snub. Also, would have disappointed a lot of people hoping there would be an immediate uturn as soon as tsipras was elected. Dont forget, he came very close to an overall majority. They clearly feel that they had a very strong mandate. It is early days, but certainly the signals that have come out of the government so far do not indicate a move toward the center. Marcus, thank you so much. As greeces cabinet meets to discuss its agenda, the new government has made its first moves on the international stage. The Coalition Said it opposed the eu Statement Issued tuesday that considers broader sanctions against russia. Lets bring in Ryan Chilcote. What is the main issue that greece is raising . There seem to be two issues. One is the greeks saying that they dont consent to the statement that came out on tuesday from the eu, that effectively laid the groundwork for possibly imposing new sanctions, expanding the blacklist of individuals subject to asset freezes and travel bans. The second issue that the greeks seem to have is that they said they were never consulted, that there was a procedural violation, and that clearly, they need to be part of any decision. The issue, as you know, when the eu makes decisions on Foreign Policy like russ and sanctions russian sanctions they need all 28 countries on board. If greece wanted to come that meeting tomorrow, they could stonewall this whole thing and prevent any more action against russia. Is this rhetoric on the greek side, because they are just trying to say, we need to talk business . Or is it rhetoric from the eu side . Are we expecting more action on thursday . That really comes down, i think, to the brandnew foreign minister for greece. He could keep this as rhetoric or he could follow up and say, we are not going to sign on to anything, to which you can imagine germany, france, some of the larger countries would say, sure. If you want to go rogue on us, thats fine. Dont expect any goodwill when it comes to debt negotiations. That might be a very difficult path to take. What we know about mr. Kotzias is that he has spoken out very much in favor of increasing greeces ties to russia. Both countries are orthodox christians. They have a common history. He has spoken against the hegemony of germany within the european space. He is a polar opposites with the president of the eu that put this statement out on tuesday when it comes to the stamps on russia. We have to see. It definitely sets the stage for some pretty interesting backdoor negotiations in brussels. Any signs that the sanctions are actually working . Some are saying that the sanctions arent stopping Vladimir Putin being stronger in ukraine. The sanctions have clearly been effective in weakening the economy and the ruble. Have they been effective in changing president clintons actions in ukraine . Most analysts will tell you, absolutely not. The phrase is that putin is playing all in when it comes to ukraine. The rhetoric against the west has increased. He has shown zero signs of changing course. Thank you very much, Ryan Chilcote with the latest on russia. Now, the new unknown, greece. For more on the renegotiations with the eu, lets welcome barclays chief european economist. We have a new government in greece and it is very difficult at this moment to figure out exactly what they want. They are radical, they mean business, but they may change once they see the machinations of the eu. The priority will be what no sanctions against russia . I think the story about russia is not really a priority. I think they are not used to the european process. They are may be surprised by the fact that there was a Statement Issued yesterday. On russia, we cannot say there is a single position in europe. There are many different views and there are some discussions. They try to come to a compromise. The new government has no experience about that. They need to learn about how European Affairs are working. When you put 28 people around the table, it takes time to get used to the process. Are you confident that they will get used to the process . You could also have someone that says, this is a process, i dont care. They will probably try to i wouldnt say change the process but they are going to be they are radical, so they are going to the radical in brussels as well. I dont think russia is a priority. The priority is the economy. With the announcement of the measures made yesterday about raising the minimum wage it is something more symbolic. We cannot get have a clear assessment about what is to be next and how they are going to start discussions with the eu members. It is too premature. At the same time, everyone is drawing lines. Germany is trying to say, this is a line you dont overstep. The french today being a little more open and saying, we cant write off debt, but we need to find a compromise. What is clear to you, that austerity is not working or they dont want more austerity . There has been a change toward austerity not only in greece but in other European Companies countries. There is a discussion about what will be the right stance. What is a good mix between fiscal canola nation, structural reforms, there is a debate on that. The ecb has been part of it. I was very impressed by the speech of mario draghi in jackson hole when he explained what was at stake and what could be done in terms of the different areas of economic policy. There is a debate about the right stance for Fiscal Consolidation. I think the french and the italians will play a very Important Role to be a mediator between greece and the northern countries who are more of the view that austerity should continue, whatever it might take. People say, investors and Market Participants say, we are in a much better place than we were two years ago. We have the ecb and now we have qe. But it feels a lot more dangerous. If there is a political contagion then we could be back to square one, asking ourselves if the eurozone will stay together. The contagion is still there. It is not the same as it was two or three years ago. Growth was still weak. There was the problem of financial stability. All that has been improved a lot. The recovery is starting. But we have the people voting. We have just discovered that we are a democracy. It is the people who decide. I think it is important to focus on the best way first of all to explain the reforms, to look at the priority i think Fiscal Consolidation is less of a priority. There has been some progress. Greece is running a balanced budget without interest. What is at stake now is the political situation, and of course, behind greece the next election. We have a radical party which is gaining support in the opinion polls. I think the spanish are looking at greece very cautiously. I was surprised to see in all the headlines of spanish newspapers they were about greece. Give us a sense very quickly of how worried you are. If you are in the markets, are you in a wait and see situation until we find out more about these guys . It is going to take a long time. The deadline is july with the repayment of debt to the ecb. It is going to take a lot of time. There will be lively discussions. I think they will find compromise. I dont think a debt writeoff is on the table, but there will be questions about debt restructuring, how to relieve the pressure. I think there will be discussions about fiscal policy what is going to be capped as priority. Maybe there will be less spending cuts and more tax increases. What is going to be more difficult is the discussion about social reforms. In what has been announced yesterday, the increase in minimum wage is something but it is going to take a long time. On the other hand, we have a better economic situation. Qe. So, but what is really crucial is the evolution of the political situation in the different countries. Thank you so much for now. We will be back. We will be talking about the fed. Coming up, sonys smartphone struggles. Lets get you some company news now. H m profits have topped analyst estimates as the company open stores in china and the u. S. The net income rose 760 million in the fourth quarter. Sony plans to eliminate another 1000 jobs in its smartphone operation according to people familiar with the situation. The japanese tech giant is cutting costs, in an attempt to return profits. The cuts will include operations in china. Oddities are set to lag behind credit markets over the next three months. Goldman sachs cut its nearterm outlook for Raw Materials to underweight, predicting losses of 10 . Coming up next we look at the swiss franc and [indiscernible] welcome back to the pulse live from bloombergs European Headquarters in london. Here are bloombergs top headlines. Rbs plans to dispose of toxic assets in the bad bank by the end of the year. This comes 12 months earlier than predicted. Rbs is the you ks biggest the u. K. s biggest government lender. The Monetary Authority of singapore said it will seek a slower pace of appreciation in the countrys dollar. The announcement sent the currency to its weakest level since 2010. It also cut its inflation forecast for 2015. Today, we hear from the u. S. Federal reserve. The fomc Committee Releases a statement at 7 00 p. M. Here in london. Economists say policymakers will keep their language pledging to the patient this year. For more on the fed, lets bring in barclays chief european economist. Thank you for sticking around. We talked about greece, the implications of qe, and russia. The fed, will it raise rates this year . This is a question that, when i was in davos, talking to experts, they were split down the middle. Maybe more people now saying it will come in 2015. [indiscernible] clearly, what has been happening all over the world cannot it will have some consequences. Even though the economy is doing well and it would make sense to start the hiking cycle, the fed has become more and more nervous. They could have some longterm impact on inflation. Also, because what we see today is the resumption of currency wars. We need to acknowledge that. Clearly, [indiscernible] this is interesting. A lot of people say that we are not really in a currency war. That the drop is mainly because of the growth strategy. So actually there hasnt been much point fingerpointing. What also the banks are trying to do is avoid deflation. We are in deflation because of oil prices. Inflation was very weak even before the falling oil prices. [inaudible] the currency is the best way to have an impact quickly. If you look at qe, it has been good for the trade. Gradually, you will have another channel. Qe will help the financing of the economy. In a sense, i understand that central bankers dont like to talk about currency wars, but this is where we are. Lets check quickly on the board. Have a look at eurodollar and what it has been doing over the last couple months. We are talking about inflation here in europe. We are talking about the price of oil. When you look at the price of oil, and the dangers of increasing Interest Rates too soon by the fed, would it be disastrous . If we had one currency around the world, one government policy around the world, it would be to ease at the moment. Is there a danger of actually if the fed gets the timing wrong, it jeopardizes the rest of the world . If the fed gets the timing wrong, it could destabilize financial markets. They would be careful, they would be patient, and that is what they will say this afternoon. I think they will probably like to buy insurance by delaying