while. bae is saying that it is broadly consistent with the prior trading outlook and the company is set to report earnings tomorrow. let's get back to our team. ryan is here watching development in ukraine. >> the situation now stable if tense. time yesterday, at least 25 people have been killed. at least 350 injured. the clashes continued. is this an uprising? is it the country slipping into civil war? police have launched another assault about four hours ago. we will keep our eyes on it. >> manus, you're watching peugeot. >> stock is up. they have new investors, dongfeng. capital is king and assets to change. you have the peugeot family, dongfeng and the french government all in. 800 million euros. , a rarel produce cash

commodity for peugeot, by 2016. >> let's get to david in berlin. he has an update on carlsberg for us. >> that is right. their earnings before interest and tax beat analyst ß tatian's -- expectations. they are making market share gains in all three markets. no wonder we have seen that the stock is up at the moment. >> up by 4.8%, more from david a little bit later. jon, as we look ahead, you are focused on a number of data and minutes coming up in the u.k. >> my eye is on the labor market data out of the u.k.. even more emphasis about the quality of the data, the headline number which is unemployment and wage growth. since 2009, real wage growth adjusted for inflation, we have had almost none. economy in this country, real people on high street are thinking, we want

some wage growth. that is what i am looking for. >> manus, what else are you watching? >> i think the market is going to wait for the u.s. housing data. minutes, minutes, both of them u.s. and the u.k. as well. we are looking at the unemployment numbers but also on the minutes. how did the monetary policy committee discussed things in january. with rising markets for three straight days, everybody is very pro-risk. let's see what is driving, see if bae makes it. sports direct up 2.3%. bae on the back of that breaking news, the stock is up 2.26%. overall, equity markets up a little bit lower. the head of the blend is bank says, buying bonds in europe or qe would cause a few more

headaches than would actually solve. that is the voice of dissent. let's have a look at some of the companies we are covering this morning. peugeot, they have a new investor, dongfeng who is in for 800 million euros. the french government in there as well. trade credite we agricole. credit agricole delivered a fourth-quarter profit. it missed analyst estimates but would you have got is tax relief on the write-downs that they took on their greek unit. the dividend of $.35, that is the first time if you're a shareholder, the first time since 2011 you got that. we want more beer in russia. in asia, carlsberg earnings beat. mr. tweed will take you through those numbers later. today will be a day when we keep an eye on the u.s. housing data.

we also wait for the u.k. data. higher, dollar lower. money little bit of changing hands in terms of dollar/yen. this is dollar down, yen rising. equities a little bit lower, yen a little bit higher. just a little bit of a shift in terms of the dynamic of risk at the moment. 102.10 is where we trade there. >> thank you very much for that. for more on the market, let's turn to the chief investment officer at london and capital group. he joins us in the studio now. thanks very much for coming in. one of the top stories we're covering today, the devastating developments in ukraine. ,s this something that instability in eastern europe, is this something that is going to be a team of 2014? >> i think unfortunately you will see emerging markets

continue to slow down and see more stability. emerging markets need to have a certain threshold. on ever andability emerging-market is lagging. you see it in brazil, turkey, ukraine. there is a political background but economic conditions which are a lot more depressed when that growth is below its target, excessive rates. that is a theme. they're going through a transformation. less growth will bring more instability. emerging-market investors will have to monitor. they are still very sensitive. certainly something that we should all be looking at. >> do you expect more nervous times for investors in emerging markets? a some extent, january was fairly nerve-racking month for anybody who had exposure to emerging markets. you see things developing? >> i think emerging-market instability will be a theme throughout the year.

the fact that there is a secular force of rates in the united states unwinding, there is a rate normalization going on, that will translate into a negative flow into some emerging market regions. that might put pressure on the currencies. aeir heirs if -- there is fundamental dynamic. we see it in argentina as well. i think that what has been the beginning of the year will be more of a sign to come for emerging markets. that brings opportunities. emerging-market stocks might be the only place on earth where you have some value in listed assets. when it comes to public equities, you might see opportunities arising from important situations. >> what is your biggest opportunity right now? >> a combination of some

emerging market stocks. they are being unfairly punished. actually -- we have some countries, some assets in countries which have none of these issues in terms of deposition. they enjoy some sort of political stability. thailand, philippines, -- >> there is instability in thailand. >> but thailand has had stability for almost five years. at least you have got a strong -- malaysia is another example. >> so they are not all created equal. back to you. thank you very much for your initial thoughts. here is a look at what is coming up on "on the move."

we will have the latest on those clashes in the ukraine as the u.s. and europe condemn the violence. the turning point for peugeot. they bring in dongfang and the french government to shore off finances. we will have more next. ♪

>> i am anna edwards in london. this is "on the move" on bloomberg television. here is a stock that is on the move this morning. peugeot is up by more than 8%.

company agrees to bring in dongfang, the chinese car manufacturer and the french government as investors. let's get all the details from manus cranny. it is complicated. >> you know what, trying to take away all the numbers and the nitty-gritty bits, what you have here is a turnaround story unfolding. you have new investment. they had a marriage with gm, didn't last long. eng coming in,f taking a 14% stake on equal footing with the french government and the fusion family -- peugeot family, capital in place, almost 6 billion euros worth of financing in place. that is the critical take away from this morning. you have bank credit lines, your sorting out the financing arm of peugeot which is a 50-50 venture. that will produce more cash. peugeot tells us, we are going

to produce cash. big picture for me is this, the end of a dynasty. have a look at this. bmw has a deputy chairman. 16 years there, 70% holding in the company. quandts in thethe driving seat. ten is in the sea. llin you have andrea agne still very much in the driving seat. there are a few things at work here. one is the dynastic rule of the peugeot family. the other, how to reorganize the company. >> we will see if they turn out to the winners or losers. you mentioned the families involved here. let's talk about other winners at dongfang and the french

government. onwe have had the government the tape this morning. we talk about vested interest. the winners could be the government. this puts peugeot on a stable footing. it will mean less job cuts, closures and france. dongfeng is a winner, potentially a big winner in terms of technology and ambitious sales targets. of 1.5t a sales target million units by 2020. that includes their own brand, dongfeng along with peugeot. that is the critical piece here. dongfeng going after technology, peugeot going after access to markets. critical access to critical growth markets in asia and southeast asia. is symbioticord relationship.

symbiotic relationships of course tends to provide or deliver somebody who is a dominant for something you didn't quite expect. a new agenda at peugeot seems to be the way forward. managed toey have sell new cars. they have caught the zeitgeist moment of what is wanted in the market with the 308. there you go. that is a car to watch for. >> thank you very much, manus on the car industry. up later this morning, don't miss the interview with the ceo of peugeot,. he joins bloomberg for his first interview of the day. story.ick up on this pau, let's talk about the car industry. >> we are interested. representative of

what is going on in europe. with car manufacturers high exposure to the eurozone as a whole as opposed to other car manufacturers which have more of a global footprint, are almost a counter in the mind. they are very much -- >> so interested in but not investing? >> not investing. i am excited to see investors benefiting from what is a technical rebound. a lot of people are very negative on the stock. a lot of people are scrambling, trying to buy back the shares. however, who are the big winners on this? i am not sure that shareholders are. you think about a company that is burning cash at a big rate. positive cash flow yield in the 16 is very far away. this is the kind of company that has a negative return on equity. i would be very interested to hear what the ceo is going to tell you. at the moment, it seems that it

is not a lot of positives taking place. aboutyou are thinking whether to invest in a business and you come across a business that has a shareholder structure where you have 14% owned by the government, 14% owned by a similar business in a different part of the world, these competing influences on the leadership of the company -- does that ring alarm bells for you? >> it would ring every alarm bell in the melting -- the building. you have a chinese manufacturer which is there for the intellectual capital and to learn as much as possible. that is quite clear. you have a government whose main agenda is political, not economic. it is a short-term victory for them because they can put themselves out there. not very long before an election, they are doing things to shave jobs. -- save jobs.

and you have a dynasty which is a wonderful thing to be part of, but i am much or they are the best equipped to deal with a very competitive landscape. peugeot might have been in a beautiful position 20 years ago. , across new entrants there is a choice for consumers when it comes to cars. every single alarm in the building is ringing in my head. let's talk about your investment strategy more broadly. what is happening in the eurozone? how do you assess prospects for the eurozone and what the ecb might do? i know that is one of the things you're thinking about. cracks the eurozone -- >> the eurozone has staged a significant rebound. investors have already reflected the rebound. these expectations have already taken place. now, so what?

>> is that catch-up that people were talking about last year, that is already done? asked i think most of it has been done. when i talked about this year ago, everybody was on the way to europe. everybody was claiming that we were all going to fall under this hole and disappear. now everybody who wanted to be in euro stocks is seeing a lot they are delivering. growth is still very subdued, credit is not really following at all. the ecb is still behind the curve. the ecb holds the key in this whole puzzle. if they don't really make sure spiral istionary solved, you're never going to solve the landing. thank are not going to start lending. not with an asset quality review

coming up. growth will be subdued because this debt will not disappear when you have such low price increases. i am worried about europe. there are opportunities and some quality stocks. >> which are the quality stocks? >> some pharma stocks are still attractive. roche. >> is that because of takeover speculation? >> a lot of concerns about claims being exaggerated. these people have the ability to do what the tobacco industry did 10 years ago, buy their way out of problems. companies -- the robbery particular stocks. theall, the eurozone and european equity markets are still priced for success. earnings-per-share in the

double-digit territory. i struggle to be convinced whether those earnings will be real. >> thank you very so much for joining us today. coming up on the program, carlsberg reported earnings this morning. we will tell you how the brewer hopes to get profits flowing in asia. stay with us. we are "on the move." ♪

>> welcome back. i am anna edwards in london. here are some of the companies that are on the move. marks and spencer's is banking on its expanding network of food stores to boost sales of other items including loading and home goods. the head of its e-commerce unit added that stores where customers pickup ordered items have driven lots of growth. telephone -- telefonica's german unit is likely to face regulations over its bid for kpn. the eu opened up an in-depth probe into the transaction. orange is said to the intensifying its search for acquisition targets in spain to avoid being left out of potential consolidation in the market. france's biggest wireless keller is clear he -- carrier is considering wireless targets.

they may up against an acquisition if they deem the price too high. another company we are watching is carlsberg, the beer maker released earnings this morning. --id beat has been pouring not a pint, he has been pouring over the numbers. what did you learn from the results? they had a pretty good trifecta if you look at their earnings before interest and taxes. they beat analyst expectations. they have achieved market share gains in all of their markets. the dividend up 33%. that the stock is up about 4.5%. that is the biggest one-day gain that carlsberg stock has seen in more than a year. the point is, it only brings us back to where we were in january. that is really a reflection of ongoing concerns in one of their biggest markets. i am talking about russia. eastern europe represents in the third quarter, the fourth quarter, around 26% of all of carlsberg's sales.

russia has been an issue for them because there was a change in designations of beer. it is now counted as an alcoholic beverage, not a food. that makes sense, but for carlsberg it meant that they were locked out of some of their that was an because important distribution method for them. the russian government is also trying to stop russians from drinking so much. that is why we are having ongoing problems in the russian market. even though market share was up, in 2013 wasrket down about 8%. >> we have heard that about the russian business. what is this company doing to increase its business in asia? >> what they have said -- and we are going to speak to the ceo of carlsberg a little later today, he said they're going to focus on strengthening the russian business but also developing the asian business to capture growth in that region. what we have already seen at the

end of last year, they moved to acquire eight breweries in china. carlsberg has also changed the trust of its major shareholder, the carlsberg foundation. that is going to make carlsberg a lot more flexible when it comes to m&a. i will be an interesting thing to ask the chief executive, what have they got in mind in terms of m&a? which parts of asia do they want to grow fastest? >> david, thank you. one of our guests is watching their expansion plans in asia. certainly key to that story. don't miss our interview later on "the pulse" with the carlsberg ceo joergen rasmussen. i will be coming up on the program. coming up, clashes in ukraine turn deadly. we will bring you the latest developments on the escalating conflict after the break. ♪

>> welcome back to "on the move ." i am anna edwards in for francine lacqua. we are 30 minutes into the trading day here in europe. let's see how things are shaping up. this is the picture across the equity markets. unchanged in paris. the london market fairly flat with a slap report that -- a slight upward bias. the standout performance in the shape of bae in london and peugeot in france. let's talk about the currency is a little bit.

currency traders will no doubt be on the u.k. today. data get unemployment later on for the u.k. economy. that will be key to the direction of interest rates going forward. perhaps it will be more a case of what wage numbers say. we get minutes from the bank of england and the fed later on. bring you on and up-to-date with bloomberg's top headlines. new standards approved by the federal reserve will require the biggest foreign banks to hold more capital in the united states. dollar in the0 billion u.s. will have to comply with the standards. china reduced holdings of u.s. treasury debt in december by the most in two years. the federal reserve announced plans to slow its asset purchases. china cut its position in u.s. u.s. government

bonds by more than $47 billion. china is the largest foreign u.s. creditor. clashes in ukraine between police and antigovernment protesters killed at least 25 people according to the country's health ministry. hundreds were injured in the bloodiest day of the three-month standoff. fires burned through the night in kiev as demonstrators maintained a shield against security forces. the u.s. and european governments condemned the violence. let's bring you up-to-date with the latest from ukraine. ryan chilcote has been monitoring the situation. >> those clashes look like they are likely to continue throughout the day. last night was talks between the ukrainian president and the opposition leaders which yielded nothing. the ukrainian government demanded that central square be vacated. they said they wanted a truce. the police came and surrounded it. they told all women and children to leave.

the police called protesters to come to the square -- this morning, though i think numbers are probably less than what we saw yesterday and perhaps that live picture is a little bit last romantic. some of the fires have been put out. ukrainians arriving at the square. one of our reporters on the ground saw a bus of young man who had come in from the western city. some of them were armed, one with a hunting rifle. yanukovych.ey want this conflict is not going anywhere. we have the polish prime minister -- >> talk to us about what is being said outside ukraine about this. is this gaining more attention among the countries that surround it? >> it is. russia has been talking about it the whole while. poland has been talking about it. theave countries within

european union and the united states chiming in. just about 9:00 this morning local time, the ukrainian -- the polish prime minister started addressing the parliament. ukraine may be witnessing its first hours of civil war. there are various ways to characterize the situation on the ground. uprising against an unpopular government, a civil war, a split between the west and the east -- is that ther magnitude and the scale of the violence only gets bigger. that is obviously what has got everyone concerned. it does not look like the politicians, the government and have been able to agree on anything. >> we had a guest who is saying becausen't civil war there seems to be a lot of unity against the government. >> that is one view. there is a significant minority that would like to see -- does like president yanukovych, does like russia and does not support

what is going on in the square. and thehin the square opposition, there are divisions. that is one of the things making this conflict so complex. >> ryan, thank you very much. those live pictures show that some of the fires have been put out. we will see what transpires throughout the day. u.k. unemployment figures are due out later this morning. last week, the bank of england sever the link between the unemployment rate and the interest rates. the thanks minutes will reveal how much forward guidance they received. jonathan ferro joins us more -- joins us for more. focus is going to be on the quality of the underlying data. you have unemployment coming down quicker than many anticipated. are you feeling any richer? been below the rate of inflation ever since the financial crisis began in

2008-2009. if you look at the data from the office of national to assist ticks -- statistics, many people have been getting poorer. less hours.orking you would expect to see depressed wage growth off that. that is what we have got today. what everyone wants to see is a sustained pickup in the labor market. obite the minutes of the to backward looking? have the meeting and the minutes being released, we heard from mark carney. >> there will be some discussion as to how redundant both sets of minutes are given that we have heard from those individuals. i think the minutes give you a better understanding of dynamics. how it developed, how they got there. also, foresight as to how it develops over time. look for any discussion on forward guidance. emerging markets will be of interest to many people as well.

for me, what is really interesting is the data. we have had some ugly data at of the united states. payrolls below expectations and retail sales as well. i want to know if any officials at all think that bad data is not whether-related. if you look at u.s. retail sales , we saw a fall in non-store retail sales. that is effectively people shopping on the internet. the weather shouldn't affect that. we have also seen sales at for ari and maserati holding up well as well. i think the question needs to be asked come is it just the weather? >> we will get some more clarity perhaps later on. thank you very much. coming up, soda stream gets a boost from an unlikely source. all the details coming up next. ♪

>> i am anna edwards in london. this is "on the move" on bloomberg television. " is coming up at the top of the hour. carlsberg's chief executive,

joergen rasmussen will be on the program. on the give his thoughts latest numbers from that brewing business. don't miss the interview with the ceo of peugeot, philippe varin will be joining bloomberg for his first interview of the day. the u.k. and saudi arabia have agreed on increased prices for-jets. by ourjoined now bloomberg reporter. give us your initial thoughts here. this is all because of a fairly complicated sounding contract that was signed many years ago. had some flexibility about pricing built into it. >> the u.k. and saudi arabia agreed on the deal for 72 typhoon combat jets. there is a clause in there that as price would be adjusted economic conditions changed. for over a year, they have been haggling over this. this has finally come to pass.

it is a boost to their earnings and a yield of nice cash payment for bae because some of these airplanes have now been delivered. that will help them with their share. >> a little bit of certainty too for investors. what about these broad implications for the stock? >> everyone has been waiting for this. it removes a bit of uncertainty. the middle east relation grip -- relationship is critical for bae . >> they have quite a large operation there. >> there is talk about a deal for other combat jets it is critical to see that production line go past the 2020 timeframe. getting the saudi relationship right is key. --will help with other talks other folks in the region, qatar, etc. >> we are expecting numbers tomorrow. >> correct. >> thank you very much for joining us. rob wall joining us to talk about bae. joining us now from paris to

talk about peugeot is a senior consultant at frost minutes element. thank you very much for coming here. peugeot stock up by 4.8%. is that for all the right reasons? >> there is a couple of reasons it can go up. the good news is they are burning six times less cash than last year. they are doing good. the big news of the day is the agreement with dongfeng which is going to provide them with some financial support, financial means to reinforce r&d. a couple of other things, hybrid technology which is a very good technology which will be

developed with dongfeng. also, what peugeot was missing they willo renault is be able to develop a low-cost car platform with dongfeng which will be manufactured in china to be sold in southeast asia. and in eastern europe the sold in europe. .t is good news >> some investors are concerned ofut the complicated nature the management structure at this business now and you have the family, the french government, the chinese carmaker. they all have slightly different input -- different interests involved. >> exactly. deal,alking about this that was one point of concern. hadof the problems that tsa was, they might have to reduce

capacity. governmentnd the wouldn't agree because they want to save employment. that is one point of concern. , theu look at renault state has 15% stake. they have still been able to reduce operation capacity. >> how much opportunity is there for peugeot in china? we have seen a lot of concern about credit conditions in china. some people talk about the availability of credit, pollution increasing as well. what opportunities are there for the french auto maker? >> china is the biggest growing market. dongfeng plan to be another force that would make the capacity of 900,000 cars in

china. the real interesting thing in china is this hybrid air technology which makes hybrid vehicles which consume air. those cars might fall into the quota for a sales restriction. there is a marketing china and there is a market for clean vehicles. that is comparable to toyota with the previous. -- the prius. it would give them a competitive edge. >> where is the flow of knowledge going to go from and to? is it going to be a one-way street from france to china? dongfeng are beginning to attract more manufacturers. they are interested in the platform that they have for

their vehicles. they want to leverage those technologies. there is more and more people getting into china. there would be a transfer there. what you have to say is that now unlimitedng to have financing. if you look at what happened to over $1hey were given billionand another $1.5 gave them some way of investing in r&d and innovation to improve their position. that is a very important factor that dongfeng is going to provide. >> thank you very much for joining us. here are some of the companies that are on the move this morning. carlsberg reported

fourth-quarter profits that beat analyst estimates as the company gained market share. carlsberg is looking to expand in markets including asia to counteract slowing growth in europe. it is seeking to reduce its reliance on russia. swung to acole fourth-quarter profit from a record loss a year earlier. france's third-largest bank was helped by a tax rebate. net income was 612 million euros. the italian owner of jeans maker diesel has declined to roll out a move to roberto cavalli. that is after talks that cavalli has held buyout talks. these executives say a volley could be interesting. oure want to position product as an art tentative -- alternative to luxury. we would go after companies that position themselves in the more contemporary and premium segment , compared to the top luxury or

basic casual wear. >> let's get to another company we have been watching, soda stream. shares of the israeli home soda machine company have bounced back from a 14-month low. they might have their archenemy, coca-cola, to thank. let's bring in elliott gotkine. often that soda stream might be obliged to the world's biggest maker of soft drinks. the default position seems to be taking flight, most notably in the super bowl ads complete with exploding coke and pepsi bottles. this time, things might be different. ever since coca-cola bought a 10% stake in green mountain coffee roasters, shares in soda stream have begun to rise. at the same time, bets against soda stream shares, short-sellers of soda stream stocks have declined.

they are about one third of soda stream's earnings at the beginning of the year. now it is round about 1/5. some investors and analysts think that coca-cola buying into green mountain which has a do it yourself home soft drink machine , is a validation of that model. others having one and one together may be making 2.5, maybe making 3. it follows that pepsi must be interested in buying a stake in soda stream. either way, shares in soda stream up about 15%. they did fall a little bit yesterday. previously we have seen takeover rumors surrounding this business. that pepsi guarantee or anybody else might want to come in and take a slice of soda stream. >> absolutely. there are plenty of rumors saying that pepsi or coke might

come in and buy soda stream. pepsi is looking at getting into this market. it sees it as another distribution channel. it could go with anyone, green mountain, soda stream, it certainly has the resources to do so. shares from soda stream have lost more than half their value from their peak. rather than looking at the green mountain deal and thinking soda stream must be also insight, people might think that soda stream looks quite cheap. it certainly trades at about 16% discount on nasdaq. >> elliott, thank you. sir richard branson's ski lodge is available for rent if you can afford it. an inside look at the billion epos -- billionaire's swiss hideaway is coming up next. ♪

>> ever wonder where a billionaire stays when he skis? inside virgin ceo richard branson's mountain hideaway in the slips out -- swiss alps. it is if you can afford it. >> it is simply referred to as the lodge. richard branson's personal holiday home in the swiss alps. it is. open to rent. guests, it is18

more like a luxury hotel. a staff of 15 chefs, a spa therapist and a 24-hour driver service. then, more personal touches. downstairs is set up for the ultimate, a fully stocked bar and a dance floor with a disco ball. the pool isn't far. >> we try to discourage drinking in the pool. to -- we will be here to make sure no one strays too far. >> with a large living room, quiet suite and a bunk room for the kids, it hosts corporate get a raise -- getaways and the branson clan. >> we are going into richard's suite here. low butings are a bit there is a remote-controlled fireplace. >> not everyone who stays here knows this but given that it is

richard's rim, there has to be a surprise. in this case it is a secret passageway behind the bookshelf. we open it up, it leads into the neighboring suite where you can , maybeme peace and quiet get some work done when you are on your ski holiday. >> rooms are available to rent individually. if you want the whole place to yourself, you need a ceo salary like sir richard. christmas week will set you back over $180,000 so the lodge is popular with corporate groups to impress clients and let loose. a mountain lodge that isn't as your as the virgin snow outside. hans nichols, bloomberg. >> the secrets of richard branson's ski hideaway no longer secrets. thate looking at markets

are a little bit sluggish this morning. europe stocks are trading a little weaker this session. that is it for "on the move." guy johnson is up next with "the pulse." ♪

>> ukraine on fire. you are looking at live pictures from the country as the latest fighting leaves at least 25 dad and hundreds injured. three is a crowd. peugeot strikes a deal with the french government and dongfeng. ceo,e live with the philippe varin. bae lands a deal in saudi arabia. it agrees on a new higher price for a long-awaited typhoon jetfighter deal. good morning. welcome. you areat