>> 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 are watching "the pulse"

live from bloomberg european headquarters in london. i am guy johnson. francine is off today. let's tell you what we have got coming up. we are live with carlsberg's ceo. with clashes in the ukraine escalating, we are going to talk to him about the brewer's big presence in this country and what it means for him. is istails on what happening in the ukraine, the violent clashes taking lives. the number of dead continues to climb after the bloodiest episode of the three-month standoff. ryan chilcote joins us with the of contextnd a bit that we need surrounding these stories. these pictures are amazing. ring us up to speed with the latest development. >> bloodiest day in these protests in three months now. bloodiest day in ukraine's 25-year history, 25 people killed, 350 injured.

both sides increasingly entrenched. last night we had the police telling women and children to leave the square. we had the opposition leader calling men to the square to defend it. another leader says they won't leave it until this is over. -- we now have the european union weighing in. the polish prime minister has been addressing his country's parliament. he says this may be the first hours of a civil war. he says the country's existence is now in doubt. it is now time for eu sanctions which he will take to the european union. he says the solution doesn't look like it will work anymore. it is time to work with the opposition, hold john ninkovich responsible. anukovuych responsible. there is talk from the polls about the need for a rescue effort. that is days, weeks, months

away. political is stability or some kind of stability in ukraine. >> financial market reaction to all of this? 23%,e bonds are now above pretty extraordinary. a record for the country's bonds. yesterday, yields declined in the morning by about one percent after the russians said they were going to resume their $15 billion aid program for the country. that lasted for exactly one hour as investors focused on political stability. it is not about the $15 billion of aid ukraine needs anymore to repay its debt to the imf and private investors. it is about stability in the country. it is clearly out of control today. >> reserves are being burned through pretty quickly as well. it is going to be interesting to cover all the angles of this. thank you very much indeed. let's move on to our top corporate story. peugeot shares rising this

morning. they are selling stakes to dongfeng and the french government later this morning. we will speak to the company's chief executive, philippe varin. that will be his first interview of the day. the details of what we have learned over the last 24 hours -- manus cranny joins us. with thekick it off shape of this deal. the question for shareholders is whether it is capitulation by peugeot in terms of going on this -- i suppose tripartite. dongfeng is coming in with capital and the french government coming in all on an equal footing of 14% shareholding. we're going to have a rights issue. they have shored up their defenses in terms of access to finance with the banks. the capital has been taken care of. dongfeng is the partner of choice. they have tried to sell other assets rather than turn to

dongfeng. what are they getting out of that deal? we have got research and development, that is what we're hearing mr. varin saying. technology sharing for dongfeng. the three of them are all in. the capital is in place. peugeot onng to put a better footing? >> we saw better numbers this week. deliveredd as renault and that could be a problem moving forward. talk to me about the challenges. sales a little more stable but you now have three parties involved in the company that is struggling with a lot of challenges. >> often times when you and i have covered the stock, there is a couple of facets that we refer to. one is the amount of cash burn. they are reducing it. the target was to reduce the cash burn by 50%. they have done that with aplomb. they have narrowed losses. those are better than market

estimated. the image you are looking at now is one of the new models, the 308. this is doing well in the market. they have got a model that works quite well. they have a car that is working. i will leave you with this thought, at the end of a dynasty, the family at peugeot have lost the battle. think of what is going on at bmw. i stille andrea agnell sitting on the board and you have the quandt dynasty still there. klatten still in their. really a historic day in terms of the changing landscape of dynasties in europe. >> thank you very much indeed. we will be live with peugeot's ceo. it will be his first television interview of the day. bae says theplans,

u.k. and saudi arabia have agreed on increased prices for typhoon jets. whore joined by rob wall covers defense and aerospace for us. this is the transaction we have been waiting for. the company has been waiting for a very long time. >> they were first hoping to get this deal closed in 2012 and it didn't end to complete. it looked like it might not happen in 2013 but this has just happened before full-year results come out. forbae, -- big deal for bae, . terms for in pricing these 72 airplanes. they agreed to sell in 2005. why did it take so long? essentially, saudi's didn't want to give up that much money.

he knows the middle east and he knows how to haggle. >> implementations for the program? andt is good news for bae euro fighter typhoon in that area. there is talks that saudi arabia may place a follow-up deal for more planes. getting through this pricing phase was critical to get to the next stage. it is key to get typhoon production past 2015. then there is qatar, bahrain, kuwait. they're all looking at fighter jets. >> that puts the results tomorrow in a slightly better light. we will look forward to those numbers. we will see later, thank you very much indeed. carlsberg shares are rallying today after the brewer beat estimates. we are going to speak to its chief executive in the next hour. david tweed joins us from berlin with the breakdown. >> let's look at that breakdown. there are three pieces of good news that appear to be driving

the share price. the earnings were better than analysts expected. we have seen a 33% increase in the dividend. finally, market share gains in all three of their main regions where they are operating. if you look at the share price, that gain was the biggest gain in your the 18 months. it only takes them back to where they were in mid-january. reflects concerns about what is going on in some of the biggest markets. you mentioned the ukraine, that is an issue. they have a 28% share in the ukraine. it will be interesting to talk -- mr, rasmus ssen later about that. taxes are going up in russia as well. the government there wants russians to drink less. there is something else to look at. >> talk to me about this

position in asia. asia is kind of where the company is refocusing. we have seen a change in the structure of the company and the way it is owned that now allows them to do more deals further down the road. asia is the big focus. what are we hearing on that? >> you are right, we saw that in the carlsberg foundation which allows them now to become a lot more flexible when it does come to structuring deals, particularly takeovers in the asia-pacific or in asia. just the last day of december, they finished up by buying eight breweries in china. .hat is another area i am looking at what the chief executive said in his statement today. the focus is on improving the russian business but also doing what they can to increase their asian business given the fact that that is an area with so much growth potential. much indeed,very david tweed joining us from berlin.

carlsberg's ceo is joining us later on "the pulse" here on bloomberg television. what else is on our radar screen? the fed has approved new standards for foreign banks. it requires lenders with at least $50 billion in assets of u.s. capitol. american hustle is nominated for 10 i cut of the awards. film's rose talks to the director. >> it was amazing. >> i love him. it was based on a real midwestern character. there were agents in the wild. it was all true. that chemistry tammy was electric. >> make sure you check it out. you can see it in full tonight on bloomberg tv at 10:00 p.m.

u.k. time. diesel's owner has declined to rule out a move to cavalli. that is after a report that cavalli has helped in talks with a private equity firm. diesel's chief executive s aid cavalli could be interesting. >> we want to position as an alternative to luxury goods. before we go after companies that position themselves in the more contemporary and premium compared to the top luxury or basic casual wear. >> coming up, is there any data the nsa can't reach? chancellor angela merkel hopes so. she is discussing the possibility of a european network with president hollande. we will begin to whether it is feasible and what it could mean. see you in a moment. ♪

>> welcome back. you are watching "the pulse." --ela merkel meet friend saw angela merkel meet francois hollande today. they're discussing a network that would shield data from the nsa. is that feasible? which internet providers could benefit? let's talk to the president and ceo of good technology. securityide mobile solutions for companies and i am

assuming it is good technology. good morning. look, angela merkel, francois hollande, i suspect they are being well advised. they're coming out and talking about the fact they want to have a european network. is that viable? is it a realistic option? is this just them pursuing politics? reallyn't think we have seen enough information to know what is really being defined as a european network. it is certainly an ambitious statement. there is lots of different ways to address how to protect your data. looking at the network could be one option. >> is this the right place to start? >> it is really ambitious. i don't quite know how you would architect something like that. i think there is a number of countries or organizations that have tried to control the internet. it ends up being slightly risky. we will see what comes out. we don't really know. >> how much has the debate

changed surrounding security over the last 18 months? , the conversation has escalated. gone probably into every boardroom in most major companies. the conversation about, where is your data and who has access and are you taking the responsible set of actions to protect your data? there is no denying that people want data on a variety of different devices. are you responsibly looking at not just managing the phone but managing the data securing the data. >> where is the weakest point? >> i don't know there is a single point of failure. you have to sort of look at the complete workflow. i canimplistic re-think, get my e-mail or do my internet banking -- it is not just the application. it is the data that is transmitting between applications. if you're looking at an attachment in an e-mail, this probably -- three or four

different applications are going to touch that data. if you are the owner of that data, have you managed it in a way that is controlled? --when you look at blackberry was always the company when you thought security for mobile phones. i guess this is a window of opportunity for the company. is it creating new opportunities? i talked to a vc guy the other day who said he had never even looked at security before. now it is all they are looking at. how sophisticated is the echo system? >> i think that last year if you would have looked at the ecosystem, you would have seen and lots of tiny features as opposed to solutions. i think you are starting to see that settle out of little more. some more mature solutions evolve as companies that have deployed solutions broadly to secure data were closed.

i think there is an opportunity and a lot of confusion. , do you want a secure phone, secure data within a phone? the second you allow a user to install any other application, there is some increased risk. managing the device enough or do you have to get in and put controls around the data? is the biggest challenge the fact that we have got clunky but secure phones on one side and systems that aren't user-friendly and hard to work with, and user-friendly but terribly insecure systems on the other side? >> i would argue that you can have both. i think we have achieved security criteria on par or better than some of the hardware secured virgins you see. i think -- hardware secured versions you see. something you create that is not usable and is clunky, then the user becomes the liability. the perch and you are trying to protect becomes the weakest link

because i don't let you open the attachment. you will forward the attachment to someplace you can open it. you have to focus on both. if you don't allow users to put that balance between personal and work data, company data and their own data, protect their privacy and also protect your integrity, they will find a way to work around you. the sophistication of users today is unlike anything we have seen. >> just a quick final wrapup, what phone do you have? are you prepared to internet bank? how secure is that data in the world that you live in? >> which phone do i have? i have a lot of phones. we run across android, microsoft, windows mobile. we take the approach that all phones are somehow compromise. so we self-contained our security model within the platform. we looked very broadly across the market. that also applies to the

internet of things. the athletic devices are the cars, the home monitoring systems that you have. as people are sending applications and data to these devices, there is risk. -- and there are other tools that will allow you to contain that data even on those different devices. a couple of weeks ago, we saw our first and since of a malware attack from a refrigerator. >> i read about that as well. i was fascinated to see the internet of things probably is the least secure elements of many of these networks. >> it is being taken more seriously. increasingly our customers are talking about security for business partners and all of the other devices. >> i will never look at my fridge again in the same way. thank you very much indeed. what have we got coming up for you? a booming business. we will check out a sound system that is 100 times louder than the roar of a jet engine. get your earplugs ready. see you in a moment.

♪

>> welcome back. time for today's hotshots. around tight corners at high speed. jack miller posted the fastest time of the day. it was a dramatic sprint -- at the opening of the 2014 tour.

cyclists battled for the opening position over the 105 meter stretch. out the skyhigh view from singapore. the aerobatic team put on a display of high-speed skills for spectators at the singapore air show where anyone within a few miles of the event. nice shots. let's find out what is happening with the markets. not exactly skyhigh this morning. manus cranny has more. >> we are taking a little bit of a pause. we had a three-day rally that has momentarily stopped. the bank of england is going to tell us what they talked about in a couple of minutes. john ferro will cover that story later in the day. moment -- have a look at the u.k.

when it comes to retail, there is in edelman called mike ashley who runs a company called sports direct. they pack it high. they sell it at various prices. lassiter,by-side with reebok side-by-side with low brands. high-volume, high margin business. good numbers coming in today. that is bolstering the u.k. story. in paris, it is peugeot. that has fallen off the leaderboard. lafarge came in with good numbers. credit agricole didn't eat but the markets seem quite happy with the dividend story. one, the first one you had since 2011. banking shares, there is our shock. seeing that come back virtually unchanged. keep an eye on sterling. will it stay strong as we see what the unemployment numbers are in this country?

>> you kind of wonder whether unemployment is the new metric that we focus on. it has been the new metric for a while. u.k. data coming out, bank of england minutes, we will get some insight and see you in a moment. ♪

>> welcome back. we getting breaking data out of u.k.. 7.2%, 9-0 on the bank of england for both votes. fairly mixed up numbers, let's get some analysis. >> just looking at the on implement rate, we have a tick higher at 7.2%. this is a three-month rolling average. in the month of november, it was 7.4%. 7.1%.ed

you see sterling trading lower on this one. thing i am looking at is the quality of the data, the underlying data below the headline data. if you're looking at weekly earnings, you see a tick higher to 1.1%. it is slightly better than anticipated. encouraging but still below the rate of inflation. this is a key metric. we are talking about capacity, weak productivity. inflation might be coming lower but wage growth isn't matching it just yet. that is a concern. those two metrics are not mutually exclusive. if you see rates push much higher it will feed into a higher number as well. if you are worried about guidance, look at the minutes. they agree, no change to current policy. no knockout was breached and guide us. unemployment has take higher. it hasn't breached that seven

percent threshold. right now you have sterling a little lower on this one. a lot of room to keep rates lower for longer. the output gap maybe even bigger than anticipated. let's get some more perspective. let's bring in a bank economist. 7.2%? >> what we are seeing is payback for two extraordinarily strong months rent employment has fallen by 60,000 or 70,000 per month. it looks like a breather after some strong months. >> does the trend resume after that or are we down to a level where we bounce around? >> claimant counts are still falling. it is a good sign suggesting some cooling. lloyds bank job prospects have been flying. they say unemployment should keep going very well. i don't think it is a reverse completely. >> talk to me about wage growth.

to my mind, that is the key thing. we need wage growth north of inflation. how do you see the wage growth story developing if the bank is focusing on that too? >> i think you are right around march and april. that is bonus time. this time last year, you had the top rate income tax drop. it was a lot of changing in timing. i think we do pick up from here. demand for workers is rising. supply is down because unemployment is down so that should push wages up. most pay deals happen around the start of the year, we should see some action fairly soon. >> does this change your idea of where we was he the next rate hike? >> i think the focus has come from the explicit unemployment rates. what we will need to see is whether wages do pick up, whether those that are working be workingill

full-time, whether that ratio is going down? it is a number of things. for me, the first rate hike is early 2015. probably about three percent to 3.5%. as -- high >> what does the fec do next? >> i think we are seeing signs that the housing market is cooling off of its own accord. a lot of the strength is penned up demand which will become exhausted without the need to raise rates. mortgage rates will start to come off as their own accord as well. fpc willhink the press the panic button as long as the trends continue as they are now. >> thank you very much indeed for stopping by. right, put your earplugs in. engineers at the european space agency have created a sound system that is 100 times louder than the roar of a jet engine. they say no human could survive

direct exposure. sam grobart. check it out. >> this might get loud. european space agency has created something extraordinary, a large european acoustic facility or leaf which is basically one of the worlds loudest boomboxes. forget earsplitting, the agency says it can create a sound so powerful it could kill you. four massive nitrogen gas powered air horns blast sound into a 50-foot tall chamber reaching volumes up to 154 decibels. that is about 100 times louder than a jet plane taking off. to testpeans use leaf whether satellite can survive the intense waves run a rocket launch. used to tonepart down the acoustic assault of

space shuttle liftoff by spraying hundreds of thousands of gallons of water over the launchpad. european rocket scientists have some competition. there is a whole subculture of decibel drag racing in which people compete to create the world's loudest car stereo. the volumes inside those cars make rocket launches in comparison sound downright polite. >> can you still hear me? great package. come, what happens in vervier stays there. we will take you to richard branson's gotten hideaway. ♪

>> welcome back. malan fashion week starts today fresh on the heels of london fashion week. gucci kicks things off in italy's capital of luxury. according to a new study, spending on luxury is expected to grow to $1.2 trillion by 2020. for more, let's talk to antonio, a partner and managing director. nice to see you, good morning. a number of things coming out of this, clearly we are looking at a sector that has good growth

prospects going forward. the sectories within are becoming increasingly interesting. we have lots of luxury ceos sitting in the chair that you are sitting in. we talked to hunter this week, we talked to lvmh. all these countries -- companies are telling us relatively the same thing. digital is a growing part of their business. they are still trying to figure out how to use it. most of them don't see it as a channel for sales but a channel for communication. how is that going to evolve? positive about the fact that luxury will be growing. the capabilities required to grow would be diverse. when we talk about digital, the most obvious things about sales that are done online. this accounts for 7% of the total luxury town over --

turnover. ,hat is important to recognize that is just the top of the iceberg. at sales that are digital-influenced, we go up to 50% or 60%. what do we mean by digital-influenced? sales that may be stored online where people get influenced on the choice of the brand, but then the final transaction is still happening in the store. being able to engage both in terms of crm and consistency with pricing with this customer divisional --see digital is a separate channel will be quite key for success of the brand going forward. >> you have just described what another ceo said to us earlier on this week. that is how he sees his business, part of a communication where the customer wants to come in and touch the

physical. what burberry is doing, much more digitally integrated. you can now buy the music on itunes. ndts is going to apple. is burberry's model the future or are we going to continue to see companies like this doing what they are doing? have we gotten to the point where we understand the super high-end hard luxury companies, how they are going to do business? >> burberry pushed digital to the next frontier. there is a space for making a competitive advantage out of that. that is not the only thing. and we saw that one receipt does not fit all. for the younger generation, digital is very appealing. they are willing to have digital immersion in the stores.

doing, thery is catwalk within the store. when we go instead to consider what is appealing to more senior and baby boomer generations in europe, they are more willing to engage with us more in a different environment. it is very important to segment your customer base, to recognize what it takes to win in your specific segments. use digital not as a creator but a specific commercial letter. ,> as the generations change presumably the digital impact is going to change as well. >> that is very true. when we look at a market like china or korea, where the aspirational consumer tends to , differentlyger also in terms of digital, they want to engage.

they want to have the opportunity to have an impact on some areas that were typically unidirectional he managed by a brand. the site of burberry allows the consumer to interact in choosing the color of the trench and the like. and interaction from consumer that goes to have an impact on re aspect of the brand. isther strong aspect of this -- more than 70% of consumers in the luxury space are spontaneously becoming ambassadors of the brand. being able to engage them in the proper way is going to be very key. >> i know you have a plane to catch. we will let you go. thank you very much indeed for joining us.

let's stay with luxury. it is time for our special series, the highlight. swiss ski resorts are getting pricier and pricier but you can't just blame the strong franc. property prices are going sky high. hans nichols reports. ,> welcome to verbier switzerland. we are here to show you why and just how expensive it can be if money isn't an issue. >> in 2014, a permitting ban on building a second homes will make chalets like this one listed in 25 million swiss francs -- that is nearly 28 million u.s. dollars, even more exorbitant. with six bedrooms, a pool and a sauna, it is grandfathered in under the old law. a potential buyer doesn't have to be a full-time resident to purchase it. this swiss regulation cap say town's holiday properties at 20%.

have more than 85% of homes in verbier already. what is going to be built in the next few years is going to become a lot more valuable. a 10% increase within the next couple of years is certainly not to be rolled out. >> new construction is frozen but demand is heating up. already in a market that towers above its alpine neighbors. buyers and sellers were waiting for clarity on the law. now, sellers know they have the upper hand. >> when do you hope to sell? >> it doesn't really matter. when we get the right price. i think $25 million is a bargain for this chalets. we have lovely old oak beams. we have the floors which are 400 years old. things are so beautiful. >> in the valleys of switzerland , ski property is as high as the tree line. there is one loophole for the

thrifty ski bum. move to a resort village full-time. hans joins us now fresh from the highlight. you must he developing a taste for this kind of stuff now. >> either i am maturing the taste or further advancing it. you decide what i am used to, what my standards are. one interesting thing about verbier, the ski bums there, you don't get the attitude from verbier ski bums that you get from any american ski bum. i am not certain what the difference is. maybe they are just happy to be verbier.er -- to be in >> sitting at a bar with some cool guy still wearing his woolly hat sitting next to you. i know the picture. something to warm up to, definitely. i could see you as a ski bum. very nice. hans will be back later for our

next installment in our special series, the highlight. we will give you a tour of richard branson's mountain hideaway. meantime, back to business of the day. let's get you some company news. credit agricole has a profit. they were helped by a tax rebate. the consumer banking division is boosting its bottom line. the world's second-biggest cement maker saw more positive trends in the recorder. estimates bank to sales of assets in honduras. samsung is said today releasing a new phone with a larger screen and sharper display. the new handset will debut around the same time as an upgraded galaxy gear smart watch. .amsung is adding pictures spending patents in the smart grid industry. that story up next on "the pulse

." as we head into break, ukraine on fire. the latest fighting has left at least 25 dead and hundreds injured. we will discuss the wider implications of the unrest with the founder of macro advisory. ♪

>> good morning, everybody. you are watching "the pulse" live on bloomberg tv. now it is time for today's new energy. the renewable energy smart grid market reached a value of nearly $15 billion last year. china is one of the main drivers, boosting its investment into the industry. for more on the interesting green energy solutions, we are colin.by good morning. the smart grids mean different things in different countries. what does it mean to china? >> for china, it means they are making a massive investment in both renewing their infrastructure -- so the chinese government can edit -- committed

to this by 2017. anat was scaled back from earlier more aggressive goal. the largest smart grid market globally. another myth, installing sensing and automation. sort of can view a strengthening the grid and allowing it to respond to outages more quickly. >> the u.s. invests for grid stability. the europeans invest for efficiency. witness china -- >> china is a mix. a sort of future-looking part of the investment saying, there is a lot of renewable investment in china right now. eventually, we need a smarter grid to integrate all the renewable generation. >> who are the key companies generating the text going into this? >> you have some specialist companies like itron, silver spring networks, these are

specialist smart grid companies. they have largely been shut out of the chinese market. they haven't really been able to capitalize. all the contracts around the metering rollouts have gone to domestic players. some of the larger companies like ge and siemens, they have a presence in china but smart grids are only a very small percentage of their overall portfolio. to make aasier low-voltage network smart than the kind of high-voltage d.c. grids? >> we have had sort of high-voltage d.c. -- high-voltage intelligence in the grid. now what we're seeing is that is pushing down into the low and medium voltage grid. it hasn't really been economical to do it in the past. all of a sudden, as you start to have changing patterns of

at differentdemand times and intermittent generation, you need a better understanding of what is happening further down the grid instead of just at the higher level. >> ok, nice to see you. for those listening on bloomberg radio, the first word is coming up asked. for our viewers, it is a second hour of "the pulse." carlsberg is looking east. we are going to the company's ceo. we will take his temperature on what is happening with his business. we are going to look at peugeot's rescue deal. peugeot's ceo is joining us later on as well. philippe varin will be giving his first interview to bloomberg television. we will be back with the ukraine to try to assess what is happening on the ground within the country. you are looking at live pictures coming from the country. smoke continuing to below from many government buildings.

we have fires basically separating the government forces and the protesters. we will analyze the situation and find out what it is moving forward. let's talk briefly about what is happening with the markets this morning. we have seen some interesting data out of the u.k. much stronger than anticipated rate on employment. 7.2%, we were expecting 7%. a fairly incipient day in terms of direction. spain down by around 0.5%. let me show you what is happening in the currency markets and bond markets. i would just run you through what the picture looks like. there is the u.s. futures looking ahead to the start of the trading day. the pound on a little roller coaster ride. we will tell you about that in a few minutes time. we are going to take a break. you can follow us on twitter. colleague is off today.

she will return shortly. we will see you in a moment. ♪

ukraine on fire, the latest fighting leaves 25 dead, hundreds injured. we will take you inside the square in just a moment. strikes a deal with the french government and dongfang, we will speak to philippe varin. deal and saudi arabia, a new higher price for a long-awaited jetfighter sale deal. good morning to our viewers in europe, good evening to those in asia, and a very warm welcome to those just waking up in the u.s.

i am guy johnson, francine lacqua is off today. this is "the pulse," live from london. withg up any minute, live the carlsberg ceo. with clashes in ukraine escalating, asking him about the presence in the country and what it means for him. we will begin with the story coming out of kiev, death toll continues to climb after the bloodiest episode of the three-month standoff. ryan chilcote joins us now. looking at live pictures from the square in kiev. take us inside the square, what is going on? isthe situation right now stable but very tense. very easy to understand how it could kick off all over again at a moments notice. the end of the square, that is independence square, the maidan.

it is a smoldering fire, a barricade that protesters had put there. this is 10 meters to 15 meters wide. it is actually still burning. in some places the coals are knee deep. on the far side, you have hundreds and hundreds of riot police who could not just walked over that barricade. we have a guy on the ground looking at this carefully, he doubts you could even drive over it. that is where we have seen that night, that is where the standoff continues with no fighting happening right now. come to this side of the square, you see what looks like a peaceful group of protesters. distinction from the protesters, more militant protesters guarding this line of the fire. not so many people

-- basically the square and the streets leading up to it are completely open. you have peaceful and militantly minded protesters able to come in and out. importantly, bring in supplies like firewood for that fire. like metal rods and stuff to fortify. you have the situation where we are in a stasis, no fighting going on right now, but you have several thousand potential combatants on either side. with you abe back little later, ryan chilcote covering the situation on the ground. the founder of macro advisory will join us later, looking at how the protesters are impacting ukraine's international reputation, how investable or on investable the country is. a man with direct exposure to this country, carlsberg. wery aref the bre

gaining after the company beat estimates this morning. let's find out what the situation means to jorgen rasmussen. you managing the situation, dramatic pictures, you have three breweries in this country, how are you dealing with that? let me say i think it is very sad what is happening in ukraine. night, onets, last can only help all those tensions can be resolved very soon and we can get back to a more normal society again. view, iusiness point of can say the first part of this year has not really impacted -- the situation in ukraine has not impacted beer sales. who knows what can happen if this continues. >> what contingencies do you have in place? there is a lot going on, a

lot of support to local management as well in terms of being as prepared as possible for any situation. as we all know, to predict what could be happening tomorrow is very hard in a situation like this. so far it is not spread across the whole country, it seems to keyn certain parts of cities, all the unrest and tension. that can change very quickly, we are trying to be prepared for any scenarios and look after our people. it is less important about sales right now, it is looking after people. >> can i ask you -- looking at this from a different angle and bring in russia as well. the ruble this morning trading low, the central bank talking about buying foreign currencies. the ukrainian currency has been hit heavily, how are you managing that? >> i believe it is not only link all thern europe,

emerging markets. currency is a headwind for many businesses right now. we are linked to emerging markets, of course it is a headwind for carlsberg. and for us because of russia and, to a smaller extent, key markets in asia. it does impact our reported numbers. wet we have to focus on -- cannot control currency, we can try to condensate with pricing. we have to make sure we performed extremely well in the underlying business on what we call organic basis. beating competition, taking market share, and maximizing everything we do in the business in a situation like this. currency you cannot control, you and triedrk with it to overcome it the best you can. you cannot control it. another russiau

related question, sochi, what impact are the games haven't, if any, on the bottom line of the business in the country? >> it is important to bear in mind when we talk about sponsorships like sochi or the european championships in is not just about the two weeks or three weeks when you have the event. it is more about what you can do before and after. since early 2013, we started marketing sochi on some of our key brands in russia. support brand equity and brand strengths by having a big event like the sochi games to work with. that has worked for us in terms of brand equity and also corporate image. theeing so engaged in winner olympics.

it is less about sales increases during that two weeks, that is not very significant. asia have not talked about or the numbers, looking good this morning. asia becoming a bigger part of your story. thefoundation and restructuring of the ownership of the business has given you more opportunities, opening stakes in china. talk to me about m&a moving forward for the next 12 months or 24 months. , onefore i get to m&a minute on the ongoing business, what we have today. i am pleased about our performance in different regions. marketssome challenging in eastern europe, overall we have done well compared to competition. i think what we are working with in the organization, we feel good with what we are coming out with. m&a, nothing has really changed

today versus two years ago or one year ago. we still want to be part of consolidation in the beer category. our focus is in china, you have just seen with chongging being a significant step in china in the latter part of 2013. we now have a 60% ownership, nothing has really changed in terms of how we think about m&a and our strategy. way we should be thinking about the brewing business? you need greater exposure in asia, you cannot ignore it. i am curious to get your tech on microbreweries and how much investment you think carlsberg will be putting into that. >> the brewing business is not is also about, it growth. it is not being better at exciting the consumer, coming

out with products that interest the consumer, it is about making .usiness model more efficient we still have a lot more to do, we have changed a lot in terms of how we operate and have been able to improve profitability in a region with declining beer market. volume is flat. ourave also maintained profit, despite our biggest inket being in steep decline the last two years or three years. we have worked a lot to still come out with what i would call pretty decent performance, if not strong performance. yes, the category is changing, the consumer is changing, that is why we are also spending time doing consumer insight and we need to be part of an international brands. we want to be part of craft, have beer brands, we

strong brands, we have an international brand. we are taking part in that segment and plan to continue to be part of that. >> congratulations on the numbers this morning, looking forward to talking to you next time, joergen rasmussen ceo of carlsberg. what else is on our radar? the fed has approved new standards for foreign banks, lenders of at least $50 billion of assets will have to control more assets in the u.s.. deutsche bank and barclays will be the hardest hit. rising after the u.k. and saudie governments have agreed over a fighter jet deal surrounding the yphoon aircraft,

has been hustle" nominated for 9 academy awards. they asked him what was like to work with luis ouis ck. >> it was amazing. >> it was massive to have these two together. it was wild, it was all true. that chemistry was electric. >> a great chat, check it out on "charlie rose," 10:00 p.m. u.k. time. later, we are live with peugeot 's ceo. philippe varin joins a bloomberg for his first interview of the day. stays inens in verbier verbier, richard branson's mountain hideaway in the swiss alps. ♪

that, you are watching "the pulse," live from london. let's look at the currency markets, plenty of stories surrounding the ukraine and with russia. i start with the pound, some would say a disappointing reality unemployment story coming out of britain at 9:30 this morning, a seven point two percent number, we have the line the bank of england

is at 7%, people were expecting 7.1%, the pound is now down on .he back of the news, 1.6683 a fuzzy situation vis-à-vis bank policy now, looking at an output gap. kindzier concept on that, of wait and see when it comes to boe, 9-0 vote on key metrics from the mpc. let's bring our focus back to -ukraine situation. developing for the last couple months turning bloody overnight. chilcotetion, as ryan described, hits a stasis in the square. you are looking at fires burning separating government forces from protesters. fluid andion is very very tense. let's discuss the international

impact, is the country investable? us, founder joins of macro advisory. is ukraine investable? no, it is highly speculative. companies looking at investing in ukraine are wanting to see how this ends, so many possibilities as to how the situation might develop, strategic investors are held back. bondholders are in a different situation. if the outcome looks like deal remainsa intact, the likelihood of default is low and you will see a rally in bonds over the short term. longer term, the unpredictability of the situation is bad for economic growth and that for investment. >> it feels really binaries to me. if the government is the tory us and stays in power, then

ultimately we have a situation that is disastrous for the country long-term, going into default. to europe, the story for the economy moving forward is more rosy and optimistic. there is no way the ecb will put hard cash down, you end up with a dramatic default. the currency peg is unsustainable, it was always unsustainable. the situation has made that clear. if the russia deal remains intact, we could get something as we saw in kazakhstan in the last week, the government might and try to defend that line. the bond situation would be protected. if we go, ukraine goes to the eu, the paid will be taken away. i expect the currency rate more there will be debt restructuring, ecb did not bail out greece, they will not be allowed bondholders in ukraine.

>> from a corporate point of view, you talk about evaluation of the currency, that has impact on balance sheets. >> this is one of the reasons why the central bank has been trying to hold onto the bank, we have not heard a great deal about this. a lot of ukraine's corporations have done as russian companies did before 2008, they have borrowed more cheaply in foreign currencies, relying on the currency peg to protect them. now the currency is sliding, that increases their debt servicing and puts strains on the balance sheet. youhe peg were to go, could see -- >> corporate default. >> that is why we are seeing in the bond markets, bond yields are spiking more than the sovereign issues, people are fearing that the currency them that a reminds

devaluation could put companies at risk. were an international gas company with a footprint ukraine, if you were the carlsberg ceo, what is the outlook for you? >> you have to wait and see. if you are not already there, stay out and wait. youou are in the country, have got to wait to see what happens. there are a number of possible things. we could end up in civil war talk about splitting the country, there could be a much tougher situation of the government gets tough. looking at a near-term difficult situation. we were looking at 2% recovery growth in ukraine this year last november for this kicked off. the economy contracted by 1.3% this year, we were looking for , we haveof up to 2%

downgraded that to another 5% for gdp.ar, -1. the first six weeks of the year have been disastrous. situation were to resolve, it will have legacy issues. 2014 is a write off. a second straight year of recession in ukraine. already in ukraine will have to picture the wreckage as it were and see what situations will be going for. there are several binary scenarios at this point to play out. i think companies have to sit back and wait to adjust their forecasts. >> nice to see you, thank you for bringing us the news. chris weafer, founder of macro advisory. is on track market for his biggest start of the year, why are some u.k. tech companies still choosing to go public in the u.s., when we come back. ♪

out.lcome that, check this the european space agency engineers created a sound system 100 times louder than a jet plane taking out. they say no human can survive direct exposure. sam grobart want to check it out. >> this might get loud.

the european space agency has created something extraordinary -- a large european acoustic facility, or leaf, one of the world's loudest boom boxes. it could create a sound so powerful it could kill you. 4 nitrogen gas powered air horns blast sound into a chamber, reaching volumes of 154 decibels, 100 times louder than a jet plane taking off. leaf to test use whether satellite can survive the soundwaves from a rocket. tone down the acoustic assault of space shuttle liftoff by spraying hundreds of thousands of gallons of water over the launchpad. leaf may be loud, rocket scientists do have competition. ofre is a whole subculture

decibel drag racing, people compete to create the world's loudest stereo. inside those cars, volumes can decibels, making rocket launchers satellite. -- sound polite. shots. sounds to hot olympic hot shots. ,espite low visibility in sochi american david wise scooped the gold in the half pipe. the norwegian outsider took first place in the nordic combined. ld in a competition that includes ski jumping followed by a 10 kilometer cross-country race. that looks exhausting and slightly terrifying. the dutch sweep the board in speed skating, picking up a the l yesterday, and

one that record in the 10,000 meter. is where we, this stand. back in a moment. ♪

areelcome back, you watching "the pulse," live from london. i am guy johnson. francine lacqua is off today. let me tell you about a top headlines. the fed has approved standards for foreign banks that require lenders with $50 billion in assets to hold more capital in the u.s.. morgan stanley says deutsche clays will be the hardest hit. britain's unemployment rate rose in the fourth quarter, from 7.1% to

7.2% come analysts were not expecting a change. in thet 25 people dead ukraine after clashes between police and antigovernment protesters, hundreds are injured in the bloodiest day of the three-month standoff. fires burned through the night in kiev. many european governments have condemned the violence. to our topon corporate story, peugeot shares rising, europe's number two carmaker narrowed losses, selling stakes to dongfeng in the french government. i will speak to the ceo, in his firstn, interview of the day. let's get the details of what we need to know. there is currently joins us now. -- manus cranny joins us now. three is a crowd. >> but you all have an equal

footing, 14% each. 14%,ot at 14%, dongfeng the government at the same level. capitulated or have they been expedient axis and capital.-- accessing all in, almost 6 billion euros. the new ceo saying it will be &d, the french government, peter muscovy seat saying no job losses in france. it is whether those interests come together in harmony. does dongfeng get the technology they would like, does peugeot get the sales uplift they are desperate for an asia. get to government, they

say we supported a national makingy and we are not job losses stop any two-year high. the rating agency upgraded the stock. all in. this deal finally done, the balance sheet is looking a little better. what next? > will they getg, access to the technology, will peugeot be able to leverage this relationship, selling 1.5 million units by 2020. quite a high ask. a little bit of irony at the end, one of peugeot's models in they hads was the 205, a very special edition. ,ow they have got them 308 which has just caught on about

the small compact model. could it be they have a replica 205,eir hainds of the car of the 1990's. age and maturity. >> you have got to hope. 105 gti turbo. >> they did not hang around for long. you have got to love the 1980's and the 1990's. later, i will be speaking with firstt's ceo, his interview of the day, philippe varin joining me. news investors have been waiting for, bae says the u.k. and saudi arabia have agreed on an increase price structure for typhoon jets.r

why has this taken so long? >> is linked to the sale of typhoon jets that was agreed to have05, they have -- 34 been handed over. as part of the deal, the price was going to get adjusted to reflect the fact that these things drag out. the pricing at the time is no longer reflective of material. udis did not want to pay the ceoas bae wanted, wanted a good deal, there was haggling done. >> did he get what he wanted? >> yes, i think they are -- they are ready to move on. this deal is needed to get done to get other deals done. talk about saudi arabia buying you neededtyphoons,

the price escalation thing out of the way so you can start focusing on the next tranche of typhoons. >> what was interesting about this was when the uae walked the, you felt maybe it gave kings of saudi arabia the whip hand. didn't happen that way? >> i don't think so, i think what -- this deal helps regain momentum in the middle east for bae. there was an announcement in talks had broken down and the saudi deal would not happen by year end. it looks like air was out for bae in the middle east. thingstwo unrelated coming together, now there is momentum, qatar, bahrain, kuwait, there is traction in the middle east. >> that was pretty key.

payment incash 2014 related to the aircraft handed over. results out tomorrow morning. >> rob wall, defense reporter. tournament's -- to two minutes until -- 20 minutes until "surveillance." the unrest in the ukraine, thai fund deaths reported. was join us with council on foreign relations. they have done work on the polarity between eastern ukraine and russia and western ukraine, including kiev and the eu, trying to find a voice in this crisis. we will talk with ian bremmer. in the 6:00 hour, ian bremmer 8 response to what we have seen in the ukraine.

looking at the markets, market striving higher. aggressiveggests an call for 2014. >> looking forward to getting into the show. i am fascinated to see what ian has to say, he has his finger on the pulse. tom keene with "surveillance," shortly. let's find out how european markets are trading. manus cranny has more. been evermarkets have so slightly. t in the political unres ukraine, is that playing into markets? go to my twitter account, i will give you the cause for this map for 2014. barclays says the stoczz 600 will -- barclays says that the stoxx 600 will ramp up.

has a consensus of around 7.6%. will fall bycks 13% this year. unemployment comes in higher in the u.k. it panics the fx trader. have blown off a little steam, there is this demise of sterling. 1.6669. where should we go? let's look at the euro/dollar, some data coming out today, housing starts. rising a little bit, you do have come out ints to the u.s., that will dictate the pace. estimated to fall down to 950,000. s&p 500 down.

>> thank you very much. next, it is a new york state of mind for king digital, the latest european tech company to choose to go public across the pond. in a crushing blow to the london stock exchange, is it really? should we care? do we want it? we will debate those. should the u.k. want ipo's like this, are we happy to see them go? i will be speaking to peugeot's ceo, philippe varin's first interview of the day, talking about the deal with dongfeng and the french government, three is a crowd. we will find out later in the morning. ♪

welcome that, you are watching "the pulse," live from london. let's talk tech. we want to know whether u.k. is losing out to the u.s. again on big public offerings. we have learned that king digital entertainment, the u.k. maker of candy crush, is filing a $500 million ipo in new york. should we care? isning us to discuss this and ubs's garrett

mccarney. is this a blow, something that doesn't matter, how should we read this? is dangerous to ,xtrapolate one data point london is strong across all sectors, this is one data point. there will be other businesses that will choose london as the right listing location. you can take a longer-term deal on this. to listnt a big company in london, we wanted to be the right company. was this the right company? absolutely, this is the right company to go to america. i am delighted. [laughter] great news for london, we have a very strong and vibrant technology sector in the u.k. we have a number of ipos that are doing really well.

i don't know what the ups corporate book is like, we definitely have a lot of companies talking to us about coming to market this year. >> is important that we get the right -- there are certain companies that act as bellwethers and lightning rods and will attract others. you can look at it different ways. if we get the right company, it will have a better effect than simply having a big number. is that the point? >> absolutely. % company we ipoed is up 524 since summer 2012, that has been a catalyst for other small technology companies. technology and london is a story with a long tail, it is small growth driven technologies in terms of the investor base. we have either small focused right up to the idelities and black

rocks supporting these co mpanies. >> i am wondering whether the setup and london is the right one. should we be modifying listing rules to make it more attractive? getting investors to be more tolerant of lower free flows. are the rules right? >> it has been a proactive approach in the u.k., the high-growth segment is being looked at that addresses around the free flow requirement. there is a broad base of investors that is very deep with their understanding of technology in the u.k. increasingly, u.s. investors are happy to look at u.k. listed stock for liquidity opportunity. there is a lot being done to address that. there was over one billion pounds raised in technology in

the u.k. over 30 plus deals last year. this is a sector that is working, it is a market that works. >> george? >> forget the growth segment, it is doing a great job. the companies are coming to market -- >> is that the right platform? technology is long, the growth segment is just a piece of marketing on the exchange. >> 30 plus transaction last year tells the same tale. someone lasting to night, he said u.s. investors are still nervous about coming over here. european companies are happy to go over there, u.s. investors are nervous about coming over. is that true? seenthink what we have over the last 18 months since

the european a u.k. ipo market has reopened is two things. we have seen a broader engagement of u.s. investors looking to play the u.k. recovery story. the natural progression is going from the secondary market, a more open stance to investing in looking and europe to at opportunities in capital markets, including ipos in the u.k. from my perspective, they are open to looking at it. >> investors want to make money, if you show them a formula, they will press rebound. ,ech ipos in london are up 114% drawing investors and from london and the u.s. as well. idea -- i am getting a sense that the story is developing, there is momentum coming and it is not tomorrow. it is still emerging.

windows this explode? when does it really happen for london? my perspective it is happening for london and the broader market, we are talking about one sector. technology specifically, we have some good ones. there are good examples of businesses choosing, if you are looking at where did you list and why did you list, where the management team is, where the revenues come from, where the dna of the company is. if you have a strong, differentiated story, the london market is ready for the right opportunity. salesinvestors and my team are saying bring as big companies, there is a political around the guys heading for the u.s. the at the fundamentals of marketplace, these are about smaller companies. not necessarily u.k. domiciled businesses, we ipoed a malaysian tech business in december 2012,

london investors are happy with technology. >> thank you very much. ukraine exploding into violence overnight. the government vowing to restore order after the bloodiest days of the standoff. more on that and what you need to know for the rest of the day, when we come back. ♪

>> welcome that, you're watching day for the a bumpy pound. unexpected data out of the british economy, we were thinking the unemployment rate would remain stable at 7.1%, not what we got. that wasrise to 7.2%, the impact on the town. cable now trading 1.6669. let's move on. ever wondered where a billionaire stays when he skis? hans nichols got a peek inside richard branson's non-hideaway in the swiss alps. you can rent it. , it is referred to as "the lodge." richard branson's home and the swiss alps. open to rent. >> come on in.

guests, itoom for 18 is more like a hideaway. chefs and 15, 4 a driver. more personal touches. >> if you had too much to drink, we will put you to bed. >> downstairs, a fully stocked with a a dance floor disk the ball. the pool is not far. >> we tried to discourage drunken -- it is quite dangerous. there are two of us here if it leads to a pool party, we make sure -- itwith a large living room, hosts corporate getaways, family reunions, and the branson cl an. >> richard's suite.

low, there is bit a remote-controlled fireplace. >> given that it is richard's room, there has to be a surprise, a secret passageway behind the bookshelf. open it up, this leads into the neighboring suite. peaceyou can have some and quiet, maybe get some work done when you are on holiday. runooms are available to individually. if you want the whole place, you need a ceo salary. christmas week will set you back 80,000.9 populare is with corporate groups. >> the lodge -- we're very discreet. >> a mountain lodge that is not as pure as the snow outside. does notoes on tour

always stay on tour. i am sure hans nichols has a few good tales. >> it is like your time in davos as a young man, no one will ever talk about what you did or did not do in the swiss alps. i don't know what you are talking about. i have some idea, we will not talk about it now. let's talk about peugeot, we will talk to varin shortly. a grassompany is at roots, they have taken a cash infusion. the family that controls peugeot is no longer in control. look at what is happening european wide, a little bit better auto sales, but still low figures. >> we cannot overlook the ukraine. dead is thee, 25

latest count. everyone is monitoring, condemnation from foreign capitals. expect more when washington wakes up. much, ourou very international correspondent hans nichols. that is it for "the pulse," "surveillance" is next. ♪

>> this is "bloomberg surveillance." >> good morning, shot of kiev after 25 killed in the past 24 hours. we will speak with ian bremmer

in this hour. america will lose 500,000 jobs with an increased minimum wage and that is from the cbo. the tao iscks -- over 16,000. good morning, everyone. it is wednesday, february 19. joining me is adam johnson and alix stell. we will get to the ukraine throughout the show but let's get to the morning read. >> we will start in the u.k. because unemployment unexpectedly rose to 7.2% in the third quarter. it's the first increase since february of last year. we have economic data in the u.s. -- 7:00 a.m., mortgage applications, 8:30 a.m., consumer price index and housing starts and building permits. we are focused on the housing numbers