employee. how the dealabout comes together and where facebook sees the value. it is explosive growth in the emerging markets. >> ok. we will see how exclusive that valuation is. let's get to you, ryan. situatione ukrainian in the capital. >> that is right. the president declared a cruise -- a truce. that the interior ministry said that 20 of their policemen have been shot by a sniper and the suggestion is that that is happening as we speak. we have heard that the parliament is being evacuated. that.are closely watching let's go to breaking news and the fed.

we have the pmi and the manufacturing numbers coming in. the markets have an estimate. likewise, the services have quite a significant missed here. for 49.4 and is you are looking at manufacturing. let's have a look at the euro-dollar and see the clear mrs.. ok. let's leave it there. let's talk about the fed. they are running away from forward guidance as we know it. thathe clear takeaway is quantitative easing is on autopilot. it is an interesting discussion and how quickly will they hike?

>> a minority. i'm not saying they are. they are talking about it. >> who? >> two out of 17. we have a recipe. the pmi is a mess. forou ever wanted a recipe lower growth, we have one. that is what we have. look down in the south of europe, likewise in spain. two big reasons. the fed minutes say that tapering is on autopilot and the tapering will go 10 billion every single month. and theerns are ongoing pmi data is a big disappointment. is telling us one thing

and the pmi is telling us something else. pmi.opped lower on the fact, that of germany data comes out at half past eight. i think, look, it is about a number in isolation it has been four or five years in the financial crisis. what are they going to do? that is a big one ahead of march 6. back to you. >> let's get to hans nichols, who is standing by in berlin with the details on the deal of the day. courtship.about the >> so, this is how it started off, and a german bakery in 2012. they started to go hiking together and they started talking formally about a deal.

a few days later, they showed up with strawberries. and consummate the deal they talk about the deal all morning. the numbers are high-popping. 12 billion in shares. 3 billion in restricted stock. has 150 million users. one million users added each day. the important thing is that 70% of them login. compare that with facebook. twitter and ifn you look at what facebook is paying per user, it does not seem so crazy. $42. instagram pays 550. twitter is valued at 120. the last big acquisition was instagram.

here is what mark zuckerberg likes about the potential for whatsapp. he likes the potential for growth. path tothey are on a connect one billion people. the services that reach that milestone are valuable. 55 employees. you do the math. >> no press office. let's talk about the billionaires in the making. >> the ukrainian born man came to the state and he relied on food stamps. .e reported sequoia capital put an initial -- initial state they have their feet and

the fire. >> this will be a raging debate, whether it is a disrupted trade or one for the future. is the portfolio manager of -- capital. a good value? >> they are keeping their users engaged in the last few weeks and months. on facebookaged cost website. this could be a good way for them to make sure and use the service. there is growth potential for the company. >> help me through this.

you pay one dollar and it gives me a billion-dollar gross revenue. >> one billion users gives me $1 billion. where is the value come from? >> i think it will be advertising and it will be a way site anding the monetizing the users for the website. , what black -- -- >> maybe we are all missing something. have a user -- they

should deal with monetizing. >> we will deal with the issues after the break. stay with us. more on the agenda.

>> in london, the is on the move on bloomberg television, your radio, and streaming on your phone and tablet.

the federal reserve delivered their minutes. unemployment hit a 6.5% threshold. jonathan ferro has a full and robust review. >> it was the first unanimous decision of the fed. there's very little that is unanimous about what took went to the meeting. several officials want to make it is 10e message that billion. are they on autopilot? there's nothing to indicate they are moving away from that. interest rates. let's be clear that there is a conversation by a small minority.

conversation is happening and that is symbolic. you don't worry about the personal spat. what are we getting in terms of forward guidance? 0.1% away from the 6.5% threshold and we knew the discussion is going to happen. ultimately, it comes down to the concerns about low inflation and this went through the meeting. there is a concern about the snap in the labor market. doesn't sound familiar? it will come down to janet yellen. she will develop indication and it is widely expected that we will get details over the next to create a job is consensus that the federal

reserve on delivering the next phase of forward guidance. >> ok. not an easy job, running the federal reserve. we will leave it there. you read the minutes last night. backing away from 6.5%. what to do with forward guidance. give me your case on the minutes. >> they are split on what to do next with forward guidance. threshold of unemployment explain tove and market participants will be the set of circumstances that will trigger a rate increase. given the response of janet yellen, we will go into a storytelling way.

don't do well was storytelling. u.k.,see in the u.s. and when you closer to benchmarks, what is the long-term value? it is a backward indicator. monetary causey on one or two factors. explain what the decision process will be. so, you risk do the fact the 10 year yield will grow higher. >> lets move to china. we had data overnight and concern. how do you transform the data into investment philosophy? >> it doesn't matter.

was the growth sector in the emerging market. they are still officially growing at seven percent and it is getting more difficult for the government. they cannot control the shadow banking. it will be more difficult for them to control. so far, we have seen mixed --hat black - >> do you want to scale back? >> in europe, we will do better than emerging markets. the country. >> a lot of people came in and they say that they want to by european companies.

european companies and market exposure will be the dominant force. .elp me through this wrong because the emerging market is softening. if 50% of the business is in emerging markets, you really suffer. >> the prices are at record highs.

>> most of the product research hyper --opment leaves leaves higher margins. are products and we know it very well. , it isging markets growing because currency is not in the favor. it will go up again this year. all in all, the company is facing a lot of headwind. it will recover and be a good investment. >> we are in france.

saw the top line earnings rise and do better. they are doing a punchy job. it and is it a stock you want to hold? >> it is up 20%. favor of holding the bond than the stock. expected. than expect 10,000 jobs at the end of the year. -- rom the credit side >> i think it was done this year. i do not think there is much. -- theging markets

ukraine is an unsettling situation and i read a piece about the stocks with the ukraine. how concerned are you with the situation in the ukraine? tragedy.a human thatve to underline everything started three months ago with the negotiations for the collapse. on the street want to be closer to europe and value. europe feel strongly. that's the first point. in terms of the investment, it is impossible to invest in a country. allow a citizen of the country to look at the data and competitiveness and strength of the government and

management. if you are on the brink, it makes it on investable. templeton, they are increasing asset management. >> thank you very much. coming up, sluggish demand it's the bottom line. we will dig into the earnings report. we had to break and i want to show you a stock that is on the move. it is down 10%. the profit will fall as much as 10% this year after a last-minute deal with saudi arabia. a bit of a warning is coming from baa systems and we will leave it there.

>> welcome back. here companies on the move. drivingngs recovery is by cost cuts and is picking up speed. there's a plan to increase profit this year and further reduce debt. said that hedging

against losses is too expensive. brewer braces for currency volatility. this will cut operating profits that is in the currency doesn't recover. the production of the model s sedan this year. the automaker says that deliveries will grow and a selloff to china begins. orderly results beat analyst estimates. another company that we are watching is the biggest yogurt maker that reported their first annual earnings decline in more than a decade. scare ina botulism baby foods in asia. it was a bad year

and we knew it was a bad year. how bad did get at the end? things to look at is the forecast and that maybe it was not as bad as people were expecting it to be. a little less than one half a percent at the moment. you might think it would go down further. we see a drop in earnings. growthlooking at sales between 4.5 and 5.5 in 2014 and there are going to be headwinds. we're talking about sluggish consumer demand and higher milk prices inflation in 2013. also, exchange rate volatility will be an issue. what is interesting is how they are fighting back. and had a botulism scare

they have increased their stake in one of the dairy product companies and spent half a billion to do that. they are looking like they are on the offensive in china. >> let's talk about the strategy and the speculation that they are selling a medical nutrition business. what is the reason behind that? >> to focus on core product. they bought the business back in 2007. the speculation is that they are in talks and they would want to new. on something billionlking about 32 market cap and see what that compares with.

stat of thee of the day. after the break, i have a ceo who joins us for exclusive interview on the insurance industry.

>> welcome back. prime minister any. we are in european headquarters in london. let's show you how things are shaping up around the equity markets. the purchasing managers and china are lower than estimated. up 1.3% and let's bring you a bit of the disappointing data from france, in terms of the german data.

bloomberg the terminal right now. manufacturing data comes in lower than estimated. situation.e this is rising. a bit of a different story. andhave expansion manufacturing and pacing. it is not at the pace that it was estimated. you can see the equity markets and france delivers a tough time with growth. generally, a higher dollar and this is after the federal reserve. andhave the euro coming let's go to the markets.

joining me to discuss the insurance market and the u.k. floods is a ceo. let's start here in the u.k.. the image that we have been barred with -- been bombarded with is top. >> we talk about the flooding it is difficult for us to understand. issues and weance are impacted by it. >> we have more ministers

running around. when interactions do we have with the government? is there pressure from the administration to be reactive? settle claims do as quickly and as good as possible. we have the government finding solutions for the situation. that not a certain time there are talks. today one side, the issue is on the medium or longer-term. i assume that is happening and will be attributed to more talks as soon as possible to resolve

it for all parties. >> if that happens, we'll see price increases for customers like me. >> that always happens in a case like this. going to raise up prices in the industry will have to follow. that is the way that it works. >> that comes through in 2015? pricescannot change going backwards and it will go on in and evolutionary way. it is too early to say. the damage of the people in this situation. >> let's talk about the broader level and the challenge is not to be like bankers. how much left again are you doing with regulation coming your way?

back to theok crisis of 2000 date and the insurers that have problems, most of them were linked to financial projects and not the business. had fewer bigave problems. one of the reasons that they are less since stomach -- systemic risks at the end it inner conductivity between banks -- .nterconnectivity between banks unfortunately, today, you have governments and regulation that is copied from banking to insurance. >> insurers hold government bonds and they can hold liquid

instruments. they are moderate-to-high yield products. importantold some products. >> of course. we have big assets on the balance sheets and we have an liabilities. we do not have the same volume of leverage that you have in banking. otherwise, you package them and sell them. he start doing business and it is easier. >> have the regulators got that? ceos is a group of lobbying. >> we are at the beginning of a new regime and it took a long time.

longer than expected. the industry is not fully happy with the current model on the table. it is better than what we saw a few years ago. heard and there are local differences with insurance that we have to discuss with local regulators. on the endyour take of quantitative easing in the united states. europe needs more assistance. do you see asset levels? -- bubbles. are you concerned about asset bubbles? >> there will always be bubbles and people are more optimistic when thereistic and is over optimism in the market,

everybody wants to be there and as a company, you want to be different and not follow everybody going in the same direction. ownhave to make your assessment of what you do. we are active in europe and asia. and we know. we are active in asia. it is clear that you have to be andlant in what you invest there is no 100% certainty. otherwise, there would not be insurers. avoide small errors and too much concentration in risky assets. ceo and it is great to

have you with us this morning. ok. we have breaking news from seattle. let's get it. >> a fluid situation in kiev. protesters captured a group of police. clashes are taking place in independence square. there are images of the group of police being led away by the protesters under guard. this is just within the last half hour. we have gotten word that the government headquarters and the parliament have been evacuated. it will remain closed today and tomorrow. the ukrainian interior ministry reported that 20 of the policeman had been shot by what appeared to be a sniper on a rooftop in independence square. that is coming from the ukrainian interior ministry.

we had a truce announced by the president last night and it is being tested now. you are looking at live pictures of independence square. you see the barricade that separates the peaceful group of protesters from rye police. what you do not see is that the clashes are continuing sporadically and it is a tragic dance between the bryant police on one side and the militant protesters on the other. >> talk to me. you have been on the phone. what is your sense of what is going on on the ground with yanukovych. there are politicians. give me a sense of what is going on. leaders intotion an agreement to have this truce. we have a chapter of diplomacy

beginning and you have the arriving tosters talk with ukrainian president this morning. it will sit down the opposition. the opposition is supposed to sit down with direct talks with the government. will this go forward? even if they go forward, they that much more if there are clashes going on. we will stay abreast of the situation. that is the latest from kiev. facebook and whatsapp. is a man in the house. withll have the discussion us on whether whatsapp is really worth 90 million -- $19 billion.

>> i am manus cranny in london. this is on the move. when it comes to global, nobody does it better. let's talk about facebook.

whatsapp. i'm joined by james, the investment officer. this is what capitalism is. >> it is a fascinating transaction and we do not know if it will make sense. mr. zuckerberg is paying 42 a month per user and that compares four 135 and when at $60 per twitter. -- 160 for twitter. him getting one billion subscribers and we are valuation at the large. the problem that we have is

whether this sector is going to generate value. facebook generates a dollar 20. -- $1.20. a steep requirements with the pricing. a huge amount of optimism. >> facebook has a balance sheet and the ability to buy a collection of pieces that go into the facebook family. is that what this transaction is about? commenting this week of products that they have? it attially, they bought an early phase of their life. more.ill be paying a lot say that heright to has a selective strategy.

issue facebook to whatsapp pots customer base. -- whatsapp pots customer base. 's customer base. >> is that practical? to.he commercial logic has andhey are creative people you cannot tell them there are all going to pay. they have demonstrated that they are capable of starting businesses and running them. we cannot dismiss this as something that may end up being good. ffawingmber people gu

google and amazon. they have proven models. >> why did they survive? >> we don't really know why some companies survive. they have the capacity to leverage. i am impressed by the progress that facebook has made in their membership. i think it is more impressive than the bearers have suggested. >> view on facebook? -- do you own facebook? the eye worried about watering valuation and how much is in the price. >> i can tell you that you can be successful as a business. as an investment? so much of the good news is in the price.

tragedy for telecom operators. >> it is. determinedpanies are on ancient fixed line dependency and we have seen a shift to mobile communications and a shift in bundling. we have a clear expectation that texting and messaging are big component parts. we will see the telecom companies thinking about becoming tv companies. >> reinvention is the name of the game. --eative destruction what >> that's capitalism! >> let's talk to guy johnson. where are we? 10 minutes ago.

big things running through this morning. that is what is happening with facebook and we will continue the conversation with the ukraine. we'll make sure you're up to speed with all you know. talking about creative destruction, we will talk to the technicolor ceo. this goes back to the archives the film and needs to be a company that is relevant today. how do you do that if you are the boss of technicolor? what next for a company with so many patterns and so many forward. moves how do you make it all work in technicolor? we will see later on. >> this will set you back $10,000.

we will explain why and why it costs so much. who is buying them?

ando, you have a jacket goggles. what about skis? discerning skier, only

the best will do. materials. for a speciald kind of customer. methodploys an unusual and more unusual materials. mass production materials like aluminum and fiberglass. it uses cap -- patented carbon fibers. the materials are too expensive for top level racing. >> you want the best materials and it is higher prices. but i pricing, indeed. cost $10,000. the correction is just a little

less expensive. someone who can afford high-priced ace and appreciate the craftsmanship. the team is made up of ski fanatics and designers. they show where their passion lies. it gives them a cutting-edge. take this. one of only six and the whole world. it was designed so that each individual ski can be adjusted to within one 100th of a millimeter. they talk of precision and quality driving the design. mass-produced skis can lose tension by 20% and result in poor performance. and a decrease of -- percent.

they have to >> the expensive skis could be a good investment. hans nichols. >> there you go. hans nichols. we talked to jon ferro and how he spends his money. germany, as we know, it is growing and there is a little bit of a myth on why the numbers. it is not good. >> in a word, pathetic. andared to the gdp figures they are encouraging. troubling france and indicates a stagnation in the country that is a concern. what is the ecb going to do? we are still asking.

>> we'll wait to see what the answer is. all the breaking news on the ukraine and tf. up next with a pulse. stay tuned for live update.

>> the truce is tested. ukraine's parliaments have been evacuated as more people are kiev. in fresh clashes in what's up? what's out? facebook splurges 19 billion on this mobile messaging app. good morning, everybody. welcome. you're watching pulse pulse live fr