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tv   The Pulse  Bloomberg  May 6, 2014 4:00am-6:01am EDT

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>> profits dropped more than expected. >> a concession that the bank may be guilty. >> on acceptable. -- president says that the that it must improve. good morning. welcome. you are watching the polls. pulse. >> shop to you drop on twitter.
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we tell you how to indulge in retail therapy. a billionaire brawl in sydney. a billionaire street fight involving the richest men in australia. with a more tricky situation. ahead of the strategy meeting later this week. let's see what is going on. we will be joined by the analyst, jonathan. the, to say really disappointing. >> yes. a mixed bag. fixed income may be down 20% and they are also suggesting that. jp morgan suggested that 15-20% down is the running rate. it looks like they have figures
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wrong and could cut costs. the ratio is going the wrong way. >> free easy-going. is the realhat problem. >> absolutely. the underlying business of the sales provisions are better and the margins are holding up, mostly. you cannot get past this issue. 15 versus 40 is a big spurt. that in the strategy. they will be prepared to talk about what they are doing with the business and which area is being cut back. cut costs equity. so, it is important day and i think, more than ever.
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>> in terms of investment banks, a lot of layoffs. >> yes. the marketing of why they are down is a very ambitious quarterly target and the run rate is well below that. it will be something more than it appears. looking at where business fits in and whether it is something they can remedy. >> a question of leadership? ? >> they created the cap, as is. it does need to be given some time to put through the new plan. the traditional area of expertise, he cannot exist it -- adjusted, there may be. we'll have to see what the plans are. .his is not something
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>> thank you very much, indeed. the analyst from bloomberg industries. >> let's stick with the banks. the first quarter results today. saidbeat estimates and that they need a special payout for investors. manus cranny joins us now from zürich. it is about numbers and strategy. is about strategy and patience. a special reward and capital return. $.25 is the special holding. they have broken through on the buffers of capital. they are going to a bigger reduction in weighted assets and the profits. they reduce the assets and i think when you look at the , the expensesk are rising at the investment bank asset management.
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when it comes to moving away, 10,000 job cuts and it is all about the quality of cost cuts at the bank. count is a proxy of cost initiatives. the most exhausting is be ready -- the headcount reduction. targets inieved our cost reductions in the last with 42.1 we continue billion to reduce cost rates. time that the banking industry moves away from cheerleading with job cuts and talking about cutting costs in different ways.
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an interesting message for the shareholders today. >> cost-cutting has been an issue. they have been a big feature and the other is a massive fine. let's talk about credit suisse. for u.s. citizens who avoid paying taxes. a heinous crime with the irs. it could cost credit suisse $1 billion. and is aprosecutors critical issue. they created a special entity. they are talking about ring putting the 1040 in twoaccounts
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international advisors and that is what i understand is a protection mechanism for the rest of the bank. done for credit suisse is the entity that will carry the police and where the $1 billion will be leveled against. that is higher than ubs. back to you guys. >> thank you so much for the very latest. >> the french president says that ge cost bid is not sufficient. earlier, they said they welcome the input from the french government and the improvements. this for me.nslate >> it is always a challenge with the french government, particularly given that, last week, it seemed that francois
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hollande was declining to intervene. we have seen a rather coordinated message and hollande. he said that they would like to see the been improved. it is hard to understand what improved means. when you hear improved from the market perspective, you think of more money and that is not what the french government is after. they seem to be confirmed about the possibility that ge could transfer the cash. so, they are trying to ensure the best outcome for france here. down note shares are too much. a little bit. the market is a little bit jittery about political
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interference here. they kind of backed off. it depends on how the company positions or if they want to get influence or not by the french government. what's that is right. that is a distinction. a lot of companies and the french government retained a big stake. the french government has no direct stake. out 10 yearshem ago when the company was on the verge of bankruptcy and when you are on -- in the business of making trains and power equipment. the government is an important function. it is a delicate dance for them. thatare a private company will do what they feel is best for their shareholders. they cannot ignore what the government is saying. they get out.
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how is that being affected by government? a comparing contrast that you can do between the u.k. and france for another day. we saw over the weekend, ed baller band -- miller and and the business secretary say this is not a bit in the interest of the u.k. and stronger is the much on jobs, in particular. david cameron has not been opposed to this transaction and the government has been careful to make clear that they have certain red lines around research and development, and limit, and the u.k. government cannot stop this deal. there is no mechanism to stop it. it is a heavily regulated industry. if you're sitting in new york,
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you do not want to go toe to toe with the u.k. government in an industry like pharma. getting a tacit sign off from david cameron is essential in this deal. >> a strongly worded letter on the subject in the newspapers this morning in the u.k.. climb.up, the casualties we will bring you the latest on the crisis in the ukraine. we have a global strategist.
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>> welcome back. the fighting in the ukraine has intensified. special security forces have all ofn to the black sea city odessa. let's go to ryan chilcote. >> to give you a sense of the geographic part of this conflict , we start in the south of the ukraine. the gateway to the black sea and the third largest city. sent athe government special forces unit to odessa after the police station was stormed on sunday and the tragic fire and clashes on friday. they say that they have a new police chief for odessa and for the region. iev, a place that has been on theince the events
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square, the interior minister is setting up checkpoints this friday when the ukraine will celebrate victory day. take a look at the border right here. they share a 700 mile long border with ukraine. the closest point is from odessa. they announced to the they are putting their troops at high alert and the turmoil creeps into moldova. all of that is pretty far from where the actual fighting has been in the last 24 hours. the places this morning where the airport has been closed for 24 hours. the airportl that was floating crimea, as well. the fighting has been in a city that is not big but, has seen heavy fighting. -- big, but has seen heavy fighting.
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killed at least 30 separate this. an important place to keep an eye on and, increasingly, what we're seeing is civilian casualties. is that the eastern part of the country could be alienated from the central government. two things to watch. the regions that are set to hold referendums where they will ask the people if they want to secede from the ukraine, despite the fact that there is fighting in the regions. they plan on going forward with the referendums. >> thank you for bringing us up to speed with what we need to know about the situation in the ukraine. let's get some more insight on the situation. kit juckes is a strategist. good morning. people are worried about the situation in europe and ukraine.
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they are not in the currency markets. politicalaine is a itsis and catastrophe and is, apart from being bad news for the russian economy, it is worse for the ukrainian economy. a good reason not to be long on the ruble for as long as you can see. ofot of natural buyers currencies are shorting the euro. it is not clear how that plays out for the euro-dollar. it is not clear how anything plays out. >> are we brushing it off? if we have to ratchet up sanctions or retaliate, it could spiral out of control quickly. >> we should not write it off.
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it is right to say that the biggest problem is for the russian economy. i think that they could come back and have more problems in poland, for example. the european gateway. there is little growth, anyways. anything to drive in growth is going to be a further reason for interest rates to go lower for longer and for us to be week for even longer. >> thursday, what do we hear from mario draghi? programs andarket assets. -- it is much easier for mr. draghi to do something dramatic if we have inflation -- deflation.
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i do not think we will see anything on thursday that sends the euro down or the market packing. were to doyou something, he does not have the schools to play around with the euro dollar. is that right? fromamatic gestures specific intervention and foreign-currency debt undermines our currency. all that sounds lovely. he does not have the mandate. the euro rally for the last years has been driven by money returning to european equity markets. one dictated using is not going to make spanish-italian debt or european debt stocks less attractive. it could be pretty good for the euro. >> how much higher does the
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british pound go? it is being supported by bond yields that we know about. the best thing would be for the financial committee of the bank of england to push back the rate hike and expectations. we will see what they say this week. >> thank you so much for joining us today. we are back in a couple of minutes.
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>> good morning. welcome. shopping from your twitter feed is just around your corner. amazon and twitter asked for people to put their wishes into their shopping baskets. hans nichols, how does it work? >> it is impulse buying. what is meant to do is buy something or put something in your cart. it lowers a transition cost. from you deciding something and getting your credit card number out and paying for it. andsee something you like later, when you checkout, you
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can decide if you want to purchase it. if you're amazon cart looks like mine, you put more things in there than you checkout. paying anything and twitter is not getting anything. the ability for you to go to their advertisers and saying that people will buy easier on twitter and you should advertise with us. francine, >> is a great story and it is quite trained to -- tragic. amazon has been quite reluctant to go to social media. what was the hold up? have they changed their mind? >> he wanted to safeguard his data that he has and it appears that he is willing to sell a --tle bit of the data to get
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not sell the data, part with the to have people do impulse buying. a quick question for you, when you go shopping, do you use the shopping basket? do you use a shopping cart? >> both. it is a shopping cart. >> it implies that the americans spend more. they have a cart. european-style. >> ok. >> let's see how european markets are trading, jonathan ferro. >> thank you. let's have that story. the dax is down and the cac is down. the ftse has been lower this morning. fx,ou are looking at the
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139.17. better than expected. the anti-and services data is better than expected. we are seeing a sizable move flying out. you are seeing the pound coming through. 169 .32. we have not seen levels like this since august 2009. the pound is pushing higher and higher. informants time, we are looking for 57.8. it is massive because it makes up three quarters of the u.k. economy. we will have the first rate hike in the next six months or 12 months. >> think you. jonathan ferro with the latest on the market. >> coming up, beating estimates. we are live with the chief financial officer. first on bloomberg. make sure you tune in. >> follow guy johnson and me on
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twitter. we are back in just a couple of minutes.
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>> welcome back. we are live from bloomberg's headquarters in london. >> i am guy johnson. >> eric holder says that no company is too big to jail. in aholder may be comments web address as the prosecutors came closer to bringing up charges against credit suisse. >> it is possible to sanction companies that have broken the law, no matter their size. >> the eu will ask turkey to
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reduce the current account deficit. to a --according attained by bloomberg news. they have stagnated since 2005. one 35thn has made it through the way of the checklist. a long way to go. >> cashing in on the recovery. there are reports that the estimates. a maker of car parts. we are joined by wolfgang in hannover germany. mr. shafer, great to have you on the program. are pretty much in your favor. how confident are you that you will be better than the market in general and your peers this
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year? what you need to do to be sure? >> well, actually, i think we have proven that we can outperform the markets. if i take that the exchange rate, we were growing around eight percent and we outperform the markets again. way, what do we have to do? we had done it already and we markets.ntrated on the they help to reduce the emission .nd the safeties we understand and are confident that we will keep on outperforming the markets over the next time. more are you spending on r&d at the moment?
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maderogram that is being is amazing in certain parts of the automotive sector. how should we think about cars and r&d around them? do we need to change the way we think about your business? well, a good question. if you look at the quota over the last two years, i'm talking about the automotive business that is going up and is more than eight percent now. seen inmore than we had 2013. thes indeed part of digitalization of the car. we have more and more software engineers in our company. r&d costs, yes. the research is moving upward. >> i how much, mr. shafer?
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how much do you need to spend and are you looking at acquisitions, as well? >> the quota we are expecting is between eight percent and nine percent. there could be some increased possible. anare already on quite elevated level, compared to other automotive suppliers. be iferent question would we achieve additional knowledge are -- or in the electronic area. most, probably not. we are very knowledgeable in this area. we are very well in this area.
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>> do you expect the european car markets to recover? expecting the u.k. market to slow down. >> the first was for a growth of five percent. we do not expect this to continue for the entire year. we have some numbers that will not be there anymore and the fourth order. was not we had seen in the first quarter. much are you, how in russia.
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-- russia? are you concerned about what is happening in the >> is now this is not so decisive as russia overall. sales and million less than one percent of total sales of the continental group. effect on the growth rate of the group is quite limited. shipper, thanks for joining us.
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>> let's stay with the car sector. suv sales helped offset expansion costs. our correspondent hans nichols joins us now from berlin to get more from behind the wheel. hans?o we need to know, >> we talked about the base effect with europe's strong numbers. bmw did have a strong three percent increase. you can't explain the 25% increase in china as space numbers. clearly, that is where bmws growth is. this is their first quarter. they're still in first place above audi and mercedes. when you look at the profit margins, i came in at 9.5%. at 2.0 9 billion. this is mostly on the strength of their suv models. you look at the x one, the x five, the x three. all of them are up.
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x one deliveries climbed 15%. x 3, 11%. x 4, 14%. here's a quote for you. the bmw group has made a strong start to the current financial year with new record first-quarter figures. expect a record year in 2014. we talked about it all morning. it is suv 4 x 4 story. look at the numbers in 2009. oft year was 30 some percent the market. in five years it will be 40% of the market. that is a remarkable story. this is where the action is. this is where growth is and it is in emerging markets. cai, francine? >> hans, we will also get fiat results later. they're planning to expand the prettier mullets -- models. right?'re all pretty,
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they're going to try to revamp this brand. >> we're live in sydney. a street fight involving one of australia's richest people. check this out.
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>> good morning, welcome back. you're watching "the pulse." we spent a fair amount of time talking about billionaires on this program. when it comes to brawling in streets, australia is without peer. local media has exploded with
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pictures of this trillion billionaire james packer fighting in the streets. bloomberg news reporter dan petrie is ringside in sydney. >> ok. a very good morning to you, guy. ist we saw on the weekend news corp.. footage and that accompanying photographs. they have made spectacular viewing and reading for people here in australia, seeing australia's richest man, a casino mogul. he has gone effectively toe to toe on the footpath of australia's most iconic footpath with his best friend and best man at his wedding, the ceo of channel nine.
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they're still friends despite this. what happened was, mr. packer sent a text message. a channel nine van parked outside. mr. kendall says that was not the case. they meant to thrash out the issue in person. like all good australian males, he settled in age old-fashioned. that is what really brought it about. a spectacular media frenzy which soon followed. >> so he believe there is a camera crew trying to catch them out with miranda kerr? been denyingrr has such things. in terms of soap opera and theater, it has been dominating everything. of course, the fallout of this,
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there was no miranda kerr on sunday. it would've added more fuel to the fire. that he has to fall back of his board. james packer has a number of high-profile deals across asia. greatest look to have the ceos of your biggest companies going toe to toe industry. they certainly need to go to boxing class. by and large, great theater. >> it happens in the italian theater every day. >> punch ups. >> boys will be boys. >> dan, thanks for staying up late for us. that is what tv was made for, wasn't it?
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>> the sportswear company is hoping its official partnership at the world cup will turn around its fortunes. now, with just a month until the football tournament kicks off in brazil, we paid a trip to and guided us innovation center. >> it is a symbol, a symbol of the event. let's talk about brazil to -- brazuca. it is six panels with one panel shape. it is the first time we have done that very at it is a very
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nice, consistent rotation. we do a variety of tests. we want to make the show the ball keeps its shape. the rebound must be consistent over the course of the game. it is one of the most important ones is the player feedback. receivednts that we back were very consistent, very .redictable, very playable the method that we used to create the ball is something we have really perfect did. it allows the ball to have a very low water uptake. from the first minute to the 90th minute the ball is consistent. .t is for a good shape it has excellent playability. every player touches it. it is played in every game. it does not win or lose.
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>> it wouldn't be a world cup without some scandal about the ball. let's see what happens when this thing kicks off. >> adidas is ready. rozelle, world cup ready? not so much. , world cup ready? not so much. adidas has been coming under a lot of pressure from shareholders. >> i am going to go into that. first of all, francine, because there is union investment, they have just over one percent in the dust. just as weak there been saying they don't have confidence in the ceos ability to be able to sales and profitability. they find it incomprehensible why his contract has been extended through 2017.
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what they're concerned about is that nike is grabbing market share from them. not only in germany or in europe, but worldwide. me to the results. if you look at the results, adidas did say they had been hit by foreign currency issues. particularly against the russian ruble, which has been following. we all know why that is. biggests the third market for adidas. even so, if you look at their neutral sales, and you can see that in north america, they you can see that there might be some reason behind these criticisms which are coming from people like union investment. >> less talk about what happens in 2014. ceoing about the goals the has been talking about, was the plan to get into that position?
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>> they have said that even if they missed their targets in the first quarter, they will reach a 2014 targets, which might mean that they connection to meet their special 2015 goals. at the end of the release, he has come out with a pretty strong statement saying that later this month they will unleash their largest football offensive ever going into the world cup. the energy and intensity of the campaign, new products will be a clear statement of things to come. its has already started campaign. these two teams going head-to-head. adidas is the official sponsor of the world cup. nike is dressing more teams. i will be at adidas next week. i will bring you more stories from the innovation center. >> david, thank you very much, indeed.
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>> still to come, the stars of youtube. sensationsternet raking in millions of followers and billions of use. -- of views.
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>> russia says the un's goal of keeping global emissions from rising should not take countries emission limits in any new climate treaties. what is russia trying to achieve? let's ask our climate and energy reporter matt carr. what is russia's agenda here? >> it is difficult to say precisely. he seemed to be making some rather pragmatic suggestions on the one hand. agreeing with the push for a 10 year deal. they have not agreed on what the climate deal should be. they're also saying that talks need to have stronger rules. morehave to behave in a rational fashion so we don't have these last-minute negotiations that created a lot of tension.
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between theance u.s. and russia is widely different. terms of climate change. >> they differ on a few levels. they're on the same in some levels as well. both russia and the u.s. want nations to set their own emission limits. they're both pushing for that is the only way forward. to get laws into place and start clamping down on fossil fuels. on the other hand, russia is pushing for a 1990 start for the counting of omissions. since 1990, russia's omissions have plunged because of the collapse of the soviet union. the u.s. may push for a more recent beginning for the counting of omissions, so there cap is not so stringent. >> are we expecting anything
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concrete in the next 18 months? >> we will probably see a ramping up of the rhetoric. some pension funds are looking that lawmakers get tough on fossil fuels area and you look at the eu carbon price, it is at five euros. it for the copenhagen talks was up at about 30. it seems like the markets are not really expecting a lot from the climate talks which are due to conclude at the end of next year. >> all right, matt, thank you so much. guy come over to you. >> for those of you listening on bloomberg radio, bloomberg first word is up next. for our viewers, it is a second hour of the pulse. we will be talking to the ceo. it is industrial chemicals. this is the building blocks of everything that we do. this is fracking as well. this is the impact of the russian crisis is going to have on the european economy. it is an interesting
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conversation. plus, strikes. go talk to lufthansa's cfo. the pilot strike obviously devastating. we will talk to the company and find out what is next. also, the impact that the middle east carriers are having here in europe. it is going to be a busy show. we will see you in a couple of minutes. ♪
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>> another blow for berkeley. a confession from credit suisse. they may plead guilty and pay more than $1 billion to resolve a tax investigation. unacceptable -- ge must improve its bid. good morning to our viewers in europe. good evening to those in asia. a warm welcome to those waking up in the united states. i am guy johnson. >> i am francine lacqua.
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this is "the pulse." lufthansa is not ruling out more staff strikes. we are live with simone menne. begin with barclays. investors are punishing the bank -- ahead of the companies -- later this week. joining us is jonathan. the results are disappointing. in some ways, it is a nonevent. you said that jenkins was not even on the call. >> how do we think about -- make sense. that is what it will hinge on. how aggressive they will be on
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restructuring, how credible projections are. we will find out on thursday. the business hasn't been doing so badly, but the problem is --. each citigroup -- citigroup described it as a shrinking pie. biggest drive of their business, which is for them, unfortunately, they are reporting a return equity of mid to high 20%. they cut costs and focused on balance sheets two or three years ago. this is the thing barclays is going to need to do if they want to -- its stock. >> what are people saying about fixed income?
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everybody is suffering. these guys are suffering heavily. you told me this is a flow how -- a flow business. how do you fix a business like this? now, you have to address these things and be very clear about what the strategy is. it is more difficult, classified customer business. the market is more difficult. some people are plant of the business. are pullingng -- out of the business. there is a structural story here. we heard about this five years ago and we are still where we are now. i am looking forward to thursday. >> everything is postponed until
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thursday. jonathan, thank you very much. staying with banks and ubs, they reported earnings this morning. first-quarter profit the analyst estimates. manus cranny joins us from zürich. it is about numbers and strategy. >> it is. back tagging that conversation, those barclays need to step back from fixed income? this is not where we want to be on the ubs -- they did that a couple of years ago and it is paying dividends. the equity business did well for them. they're setting new targets in asset management. three of the issues were risk weighted assets. they're setting new targets. 15%, evenequity -- though they have been asked to put aside extra capital.
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>> we believe that our 15% target, with a removal of the additional operational risks year ishad in q3 last an achievable target. without the removal of the add-on, it will only happen in 2016. we believe that our business mix and further reduction will make us totally legible for these kinds of returns. >> the weight of everything that they are doing is by getting ready to give start -- substantial paybacks to the shareholders. it is a special payment on the cards. a little bit of a disappointment. backtracking from 10,000 jobs ago. the quality of cost cuts.
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>> let's talk about credit suisse. the offing?n >> they don't like people avoiding tax. credit suisse could have to pay a billion dollars. getting closer on the financial aspects in terms of your exposure to the department of justice would be a step forward. it is the criminal charges that are in thethat ether, so to speak. -- created csted international advisors. 1004 hundred 40 dormant accounts, 43,000 , putting it into that
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any litigation. they have taken $7 million of millionns -- 700 dollars of provisions. come to zürich. >> the very latest on the swiss banks. says theis hollande energy unit is not sufficient. it welcomed input after officials asked for improvements on the $70 billion bid. -- $17 million bid. what do the french want? >> that is the question. are some people in connecticut ge who may be a little bit surprised to see some of the statements. it looked like the french to -- wereor willing
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willing to let this proceed. what is crucial is we have the president himself saying it is not one of his subordinates, it is not the economy minister. it is the president. those words to carry weight. is inhey are looking for andway of jobs guarantees keeping important facilities in france, using ge asset as payment instead of cash to bulk up what remains after this deal. what theyreally know want. that is something people will be trying to find out. >> new they have a fighting chance? does it mean that siemens can come in stronger than it did last week?
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>> the rival bid is still in the game. alston said they would give siemens until the beginning of june to make and alternative offer to general electric. i do not think siemens is totally out of this. hand andhas the upper if you look at the shares today for alston, they are down in a flat market. not massively. investors are willing to give ge the benefit of the but -- of the doubt. >> let's talk about a different story. the british prime minister is coming under pressure to back out of this transaction. thats been telling people he is in favor of the transaction and that the u.k. could secure decent guarantees as a result.
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>> there is an interesting interplay going on. fromis a $106 billion bid pfizer to astrazeneca. the government said it was confident in the guarantees on jobs. astrazeneca seems to be saying we would like the government to be more neutral or perhaps even opposed to the disappearing of this very large british company into a big american company. we will have to see where that lands. this is a coalition government. junior partners are more skeptical about this deal than conservatives. we will have to see how the coalition plays out as the head unfolds. it is very active because astrazeneca has not accepted an offer. >> thank you very much. matt campbell with the very latest on the pharmaceutical sector and the alstom-ge story. >> we will get the latest on
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v's fight for control. that is coming up after the break. ♪
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>> welcome back. let's talk about the currency market. i bring you the british pound, which is surging against the u.s. dollar. too.s rising
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that is a four-month high. we are not through. the other thing i want to mention, which relates to the parliamentthe u.k. business committee has summoned pfizer to give testimony on the proposed deal with astrazeneca. another angle on the british government's involvement with the transaction. >> the fighting in ukraine has intensified and government --ops tried to re-gain regain ground from pro-russian forces. let's get to ryan chilcote. we know that fighting has intensified. what is happening on the ground? >> it is starting to look more and more like a civil war. look at the map. in the last couple of hours, the airports have been
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closed for 24 hours. there has been an awful lot of inhting, particularly slovyansk. it is worth pointing out that many of the casualties among the injured are civilians. is that willere alienate people in the easternmost parts of the country from the central government. thes not just happening in east of the country. on the other side of the country, regions are in play, odessa, the federal government has sent special forces to keep the peace in the country's third-largest city. moldova has raised border troops to high alert because they are
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worried about turmoil creeping over. the capital of ukraine, they are checking up -- setting up checkpoints. the interior minister is concerned about provocations of this friday. the big picture in the east of the country, they are planning on holding referendums this sunday. they will be asking people if they want to secede from ukraine. unable to hold elections throughout the country on may 25, that could trigger sanctions against russia. it could lead to russia not recognizing the federal government in ukraine. more and more turmoil set to come. >> thank you very much. ryan chilcote doing us the latest on ukraine. it is having an impact on the ruble. that impact is being felt outside russia.
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a company missed sales and quarter.timates in the david tweed has been following the story. the criticism being leveled at the company's ceo, justified or not justified? maybe it is justified. let's see what happened. the strength of the euro was one of the reasons they missed sales targets and profit targets. they said it was the euro against the ruble that was the main culprit. if you look at the currency neutral performances in each continent and area, they are not doing so well. currency neutral is down 20% in terms of sales. western europe is flat. increased injure many, but flat in the rest of -- increased in
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but flat and the rest of europe. you can see why union investment , which has one percent invest in adidas said that they do not in ---- have confidence ability to lead the company. has said it is a one-sided analysis. they are worried about nike. a sense.s they are saying adidas it will achieve it's 2014 goals. how will they do that? >> it is down to the world cup. they are about to ramp up their coverage. this is a statement from herbert hiner. to unleash the
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largest football offensive ahead of the world cup. the intensity of the campaign will be a clear statement of a sign of things to come. confirm that. to -- nike haslready already released its ad. >> thank you so much. david tweed with the latest on adidas and nike. we enter the dragon capsule. elon musk battles for a contract to build america's next space shuttle. we will look inside the spacex factory. ♪
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>> good morning. thanwelcome back. we have it all covered. in today's new energy, let's look at space exploration. aon musk has been leading push for renewables and is in a heated race to win a contract with nasa to build the next shuttle. we got a look inside his spacex capsule, called the dragon.
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>> spacex is the new kid on the block. born in 2002. do you ever question if you are crazy? >> yes. it is important to question your sanity. when you stop questioning your sanity, you're probably insane. --the end of nasa's saddle shuttle program left america one way to get to the international space station. russia. quick citizen embarrassing that the united states has to bum rides from the russians. nasa is now the client. with private enterprise assuming the majority of the physical and financial risk. elon musk has sunk $100 million of his own fortune into spacex. dragon is a capsule
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designed, meant to hold crew and cargo. i can stay in orbit up to two years. >> how much cheaper will it be to send an astronaut to the international space station using dragon. can take seven people. we can do it for $20 million a person. what is unique about the dragon? >> we looked at all of the electronic revolution that has been going on over the last 30 years and look at the best that is out there and said how to we fly that useto space. think it is that much more expensive to fly crew. for cargo, you have a lot of requirements on how you treat the cargo. we have to provide power and data to the cargo items.
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>> liftoff of the falcon nine rocket and dragon. >> the dragon capsule is launched into space by the company's own rocket, called falcon nine. dragon is the first commercial spacecraft in history to deliver cargo to the international space station and safely return to earth. it has only been achieved by three nations. this is the first dragon spacecraft. you can see the heat shield. >> how did it feel when i came back in one piece? >> take ai -- it felt great. >> what qualifies you to but human beings in outer space? of the falcon nine rocket have succeeded. it has a 100% success rate. that is the best success rate of any rocket, ever. >> wow, i cannot believe it
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worked. they are working in sweatshirts and t-shirts. >> we look at the next space race. >> hotshots now. caught on camera. check out this fight between james packer and his best friend. digital's camera crew following him. it all got pretty heated. our reporters questioning me quality of the fighting, but maybe that is not the way we should go with the story. camee land rover's sales to an end with no shortage of drama.
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the racers were pushed to their limits. this was team to the overall gold medal. doingt is land rover sponsoring a sailing race? we will see you in a moment. ♪
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>> welcome back. i am guy johnson. >> i am francine lacqua. .hares gained joining us now is clamadieu. jean-pierre, welcome to the program. we talk about m&a and pharmaceutical companies, biotech being taken over, do you
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feel you were be part of the story soon? we made a significant transaction a couple of years ago. do wes now behind us area expect to see the big moves we have seen? probably not. >> can i talk to about what is happening in the energy sector? i am fascinated to get your take on the story. -- losing been moving ground. u.s. chemical companies are building capacity in the united date to take advantage of the cheap feedstocks. is there anything you can see on the horizon that is going to change that? and has a big business on your sector. you have exited a number of businesses as a result. what happens next? i think you need an energy
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policy. we see that every day. -- morere of the use abused. we cannot let the u.s. have such a big advantage. we have to react to the situation. we react by being a very global company. in terms of businesses, it is -- the challenge is to move into highly evaluated product. is wellsolvay positioned to move through this. europe is losing ground and i think it is an issue. policy need to understand and take action. to ask a follow-up question? capacity is being built in the united states for basic chemicals.
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will there be an end market for all that capacity? probably not all of this project will --. we have seen companies, like dow chemical moving their focus in terms of investment into the u.s.. i think the u.s. will become a significant exporter of a number of basic chemicals and this is changing the picture for the upstream chemical companies. >> the u.s. has hydraulic fracturing. a lot of business production will be moved to the u.s. because of this. what is the business impact? how will the industry change? it is positive.
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we are in this business. we are developing chemical for the oil and gas industries. we have made an acquisition in the u.s. to benefit from these -- in the dynamic u.s.. this is the positive side of the equation. basicgative is that on chemicals, it is getting harder to compete. definite advantage in terms of feedstock. >> you talk about your needing an energy policy. the situation developing in ukraine -- could it be the catalyst that will produce a shift in energy policy? >> from a geopolitical standpoint and from a -- supply, we have an issue.
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that is another reason for europe to decide to have a very active energy policy. this has been missing in the past few years. this is one moment of the energy equation. elements we need to take into account. i expect a new commission will take this issue as a priority. i think it is a priority for europe. do you think policy makers are aware of this? this should highlight the fact that the energy prices in the u.s. are penalizing all other companies. why not act now? it is up to governments to take more of a stance. probably -- i was probably one of the first ceos to take action. policymakers realize
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that we have a big issue. the question now is to come up with the answers. none of them are easy or simple. the u.s. is becoming very competitive in terms of energy. i start to see signs showing that angela merkel, francois they are-- understanding the issues and preparing measures. ,rom the company's standpoint we have to adjust strategy. streams, move into product where energy is a much less important component. look at the reserves that we presented this morning and if we can generate some of this business, i think we are prepared to face the challenge. , thean-pierre clamadieu
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ceo of solvay joining us for an interview today. >> eric holder says no company is too big to jail. he made the company and a web address. prosecutors's are leaning closer to bringing criminal charges against credit suisse. is possible to sanction companies that have broken the law, no matter their size. fighting in ukraine has intensified. government troops try to regain ground. spokesman says 20 rebels were killed and one eastern city while dozens of civilians were wanted. security forces have been sent to the black sea city of odessa. ge'sancois hollande says bid for alstom is not sufficient.
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look at how the european markets are trading. zürich, soy is in look it over to jonathan ferro. >> how would i describe today? choppy. we were high up the low by a third. the ftse 100 stays lower. barclays stands by four percent. it is on the investment bank revenue side of things that is a little bit of concern. that is not just a theme for barclays. it is been a theme for the banking industry. however plays out will be interesting going into the next quarter. sizable moves for the pound. 169.45. -- 1.6 945. it is three quarters of the u.k. economy. if you thought policy was going to be boring for the rest of the year, you may be disappointed.
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the euro went up by 4/10. corporateiticians, across the eurozone, the exporters, what is going to push the euro down? we are above 1.39. no ecb talks until thursday. expectations of the ecb are pretty low. who was going to talk us down? janet yellen? she's the smart. is that -- she talks tomorrow. is that enough? don't get your hopes up. >> don't get your hopes up, john. >> coming up, lufthansa presses ahead. we will be speaking with the company's chief financial officer. >> as we head into break, let's the oscars of the
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fashion industries. event, whitethe tie, apparently. ♪
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>> welcome back to "the pulse." this is some of our company news today. coca-cola plans to move a controversial additive from its strength after bowing to pressure from food activists. at --gredient is a bvl 30 bvo. it is used as a stabilizer and drinks like power aid, to prevent other ingredients from separator. there is something you want to drink. french cement maker says harsh u.s. weather and the appreciation of the euro weight on sales. they're looking to complete a merger by the first half of next year. glencoe beats production after expanding in africa and australia.
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it ismpany said performing in line with expectations. . >> it is just around the corner. amazon on twitter have joined forces. consumers tweak their wishes into their shopping baskets. hans nichols joins us with the latest. i see something i like, i do a hashtag and it puts it into my car or my basket. #amazoncart.htag it makes it easier for the consumer to say i want this i want this i'm going to put it in my cart. you still have to check out of your card at amazon. me, you decide not to purchase it when you see the price tag, but at least he gets but in the cards. money is not getting any for this. they're getting the opportunity to sell ads to all of amazon customers. twittertionship between
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and amazon is noncommercial at this point. they have a technical tie up. that may help twitter sell ads so they can sell ads to other companies. it will be interesting to see how this plays out. thingss it easier to put in their car and buy things without looking apps. >> sounds intriguing. why haven't they done it before? >> jeff bezos has always been a little bit skeptical of social media. he wants to organize the world according to that data. this is what google does. they organize the world's data. to do isal media wants organize individual data and sell products to that data. this marks a little bit of
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departure from bezos to be a little but more open and increase revenue and engagement with users. >> thank you. guy thinks it sounds intriguing. i think it is dangerous. >> know you don't. >> no, i don't. to the chieflk financial officer of a company -- of lufthansa. ♪
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>> you are watching the
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polls. we are live on bloomberg television. we are streaming on your tablet and television. the pound is going to break through 172 get to the u.s. dollar. we have seen better than expected services coming of the british economy. the oecd has upgraded its expectations for the u.k. economy and what it will deliver this year. we have a 2014 number of 3.2%. one would have to assume the bank of england is going to raise rates. the pound is pricing and. a little bit more upside.
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1.6952. a few bits away. threeomberg sat down with youtube stars that have the most-watched channels on the site. they share their tips on how to cultivate a huge following of your own. >> i am bethany mota. >> i am michelle. >> i am ruby. i have about 1.6 million subscribers. i get 2 million views per video. >> i have over 6 million subscribers. >> online, especially the youtube community, they value genuine. >> the main element of storytelling.
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>> number one, it is engaging with your followers. weird -- let them see you are weird. if you are goofy, let them see your goofy. >> being able to tell a story and illustrate everything so people can see it. they are watching a video. it has to be visual. >> it is fun to engage of my followers. when i started watching videos, i related to the girls in the videos. when they responded to my comment, and made me want to watch their videos more. >> my last tip, talk about something you are passionate about. if you like fashion, make something fashionable.
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a> i upload at least once of week. >> my first video, use a webcam. >> if you want to start a youtube channel, just go for. that is the hardest part. you're going to upload content that people can see. it, do it. to do i am shy. i am getting through it. >> talking of flying high --lufthansa. we are joined by simone menne. she is the cfo of lufthansa. a i am looking at booking flight to new york over the next few weeks, can you tell me i am not going to have any more
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strikes to throw my schedule off? >> we try to bring you to new york safely and with good comfort. we are in talks and negotiations. topic, but it is constructive, moving on. i am confident we can solve the problem. i cannot strike it out. >> that is a possibility. talk to me about your negotiating tactics. some would say that you need to be tougher, that if you look at -- over the a, he has been much tougher. ashley has been able to deliver more. are you not being aggressive enough when it comes to taking cost out of this business? >> we do a lot of structural changes. we closed down locations, we
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have restructuring programs. i think the public does not see everything and that is a good part. we want to go together with our employees with structural changes, but we do not want to fight in public. that would be good. if we can figure that out, that would be fantastic. let's talk about what the competitive landscape will look like going forward from here. you guys are fighting a battle on two front. you are having to deal with a middle east carrier. is your expectation that the -- endtive story at the of the spectrum is going to get worse? do you expect they're going to see next? you think authorities will do anything about it? >> you are right.
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-- competitorse as well as the carriers. a lot is being brought into the market. southeast asia applies pressure. we have strategies. two is that we fly with class product. lower unit cost, we have enhancements and our product and we want to become the first five-star carrier in europe and we are in a good way because in first class, we reached that already. when we look at the authorities, what we expect from the we have the-- that same rules for everybody. what we do not want is anybody has a competitive advantage. . am very optimistic
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>> have you seen heathrow terminal to? what do you think of it? >> i did not. i will come next week. i expect a big improvements in the product we had before. >> looking forward to seeing that. at what theook business is doing right now, when you look at how the -- is going to change, the u.s. has been through significant capacity crunches in the united states. are we going to see a similar thing over here? are we done here, as well? >> what we need is a consolidation as we have seen it in the states.
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five airlines have about 90% of the market share. expect that in europe. not necessarily by buying of the airlines. >> thank you very much for your time. we will see a couple minutes. ♪
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>> fighting intensifies between ukraine and pro-russian resurgence. will strengthen its black sea fleet. the divide between the haves and have-nots sharpens, november
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2014 beckons. again and again, the rates are going higher. this is "bloomberg surveillance." we are live from new york. it is tuesday, may 6. joining me, scarlet fu and adam johnson. he tried every tequila yesterday. i thought the petrone was good. >> petrone is good. -- patron is good. >> it is a tequila free tuesday. employment and new business is picking up. 8:30,ic in the u.s. -- the trade balance. are we exporting? that is important. after the bell, disney. that is the one i am watching. allstate, whole foods


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