alsospondent hans nichols standing by. ryan, let's get to you. ukraine, what is in the agenda. >> it's all about politics. he are expecting this is what the acting head of the so they canants vote. it -- vote on it in the parliament. they need that in place if they want to negotiate with the imf. >> it's definitely boring. the big one around this. headwinds, you have a rare thing. cross party supports. want tond conservatives crack down on gambling. it's a thing they want to address. they provide a vast amount of revenue. we will have a chat about

toking compensation paid tackling debt. >> stocks up. eye on them,ng an and they haven't given the game away with what they are going to do with the telecom operation, have they? like they are considering all options. slight miss ona revenue, but it could be it is more likely they are going to as rid of an asset like sfr they try to focus on the core of what they do as a media company. that's where we see the earnings. we will be digging more into this in about 20 minutes. 1.6% on the down back of that open. the movement in the stock market is quite staggering. >> extraordinary. i'm going to look at the ukrainian stock market.

stocks up 22% yesterday on the back of arise on friday. it has been extraordinary. if you put your eye on the stock market, they are very happy right now. >> we will see how the volatility plays out. the european business correspondent caroline hard -- caroline hyde has a very special guest. >> good morning. i am now joined by the chief at the chip design center of what is basically every smartphone. you don't actually have any particular statements to be made, but every single company ist announces a new product making the same. >> virtually everything is based

on the chip somewhere inside the technology. >> you just announce last quarter the design. tell me about the roadmap. i know you have your site set on that. where is the demand going to be coming? >> i think it's going to be a very exciting next few years as we go to the next hundred billion. i think the innovation is going to be all over. we are going to see lots of interesting devices. also low-cost handsets, which are going to allow billions of people to get access to smart phones which could never get them before. we have got the infrastructure moving the data around and the in the internet is very exciting. >> there has been a lot of lip service paid to the fact we are

andng slowdown in high smartphones. -- high-end smartphones. everyone was excited about the chips you provided. your share price seems to have dipped a little. is there a little concerned about the highly profitable chip design? is that a concern for you? >> there is a lot being made about smartphone growth. personally i think there is going to be a lot of innovation all across the spectrum. yesterday we saw new devices that look pretty interesting. more sensors connected to other devices. at the low end and the entry-level and the mid range going to see massive volume, and i think that is going to be really interesting. make profit?ill they were talking about a $25 phone.

highlyre still functional phones going to the emerging markets. are they still profitable? >> absolutely. a feature phone. we are very excited about growth at the entry level. >> get me a sense of technology. galaxye is excited about being launched yesterday. they have two or three products. what is the scale of this ithnology, and how is important to you? >> it is all about volume. we don't make very much per chip , but when you get 10 million , these aret year very large numbers. i think as far as wearable devices, there are a lot of

people on the planet. you are going to see sensors deployed in all sorts of things. just finding where the people are, moving around a city like barcelona when it is crowded with tens of thousands of people , it's an opportunity for embedded intelligence to monitor flow, and it is easy to navigate. >> you are moving into data as well. the amount of data we are making is growing exponentially. what are your views in how you come up against the competition? to enable the energy requirement to move the data and extract information from the data. with the growth of smartphones there are only about 2 billion of them in use against about eight billion.

there are a lot more consumers using smartphones, generating data. way to dealhe only with all that is to deploy a very energy-efficient processes into networking that links these so the together processing can be done in an energy-efficient way. privacy?bout there has been a lot of talk about concerns are data might be seen by institutions. is there any pressure when you're developing chips to have the redacted to protect data? >> we see this as a big issue and an important issue. what we are doing is trying to create technology in our designs to allow encryptions to occur in an energy-efficient way. we are seeing there is a lot that needs to be done between technology companies with governments to work out a framework for how privacy and

data is going to get protected. we don't want to over regulate things because that is going to slow down innovation. at the same time we believe innovation -- individuals should have some say. >> you have a role to play. >> i think we have a role to play in helping but the fundamentals into the chip that allows data is to be secured. >> what about competition? we have heard intel is going to start designing its chips. is that healthy, or are you a bit concerned? investors toed for be concerned? >> we think competition is a good thing. competition is good. space,into the mobile that is a relatively new entrant. what we are doing is working on technology. we're working very closely with our large ecosystem to make sure the solution is as compelling as it could possibly be.

>> what about innovation in general. the u.k. you have got the tech hub and east london. you have one in cambridge. how important is the wealth of innovation that seems to be funded by crowd funding? is that something you can leverage? something you can help entrepreneurs with? >> it's a really important trend. something like this watch i am wearing came from innovation that was crowd source funded er, and istart think it is a great example of how modern technology can be used to put things together. we will see much more people experimenting, using low-cost manufacturing, using the cloud. it is easy to use an apt to put these together. i think that is going to drive an explosion of innovation. >> does that mean explosion of share price?

you have had such exponential growth. what can a shareholder expect? what can the people demanding your chips expect? keep workingng to on our roadmap of the process of technology and everything else you need to use that processor in the chip in a very efficient way. we think that is going to drive large volumes of chips to get sold. that's going to drive for us, and hopefully that should generate a great return for shareholders. >> it is wonderful having you here. thanks very much. the chief executive of arm holdings. i'm pretty excited about it. back to you. >> a great interview there. the headline from the mobile world congress. francesco, theis cohead of market research at goldman sachs. great to have you with us this

morning. a lot to get through. the first vote. he has got another vote of confidence today. what did he need to do in the first 100 days to affect change in the italian economy? what did he need to do? >> italy has a shrinking labor force. thateds to basically boost conductivity for the years to come. how does he do that? there are two main elements. one is to reform the state, the government, the civic justice, the speed at which the country that is something i would think parliament could do. it has a low social impact because it is mostly in the functioning of the public administration. the other stuff relates to reforming the labor market, and

that will have a deeper social and location, and to be affordable it will require cutting of expanding, and that this choice. >> that's a tough one to make and to affect. if i am to think in terms of time, am i looking at a year of transition, a month of transition if he gets some of the legislation through? price i think everything by the state takes longer. passing labor market reforms is down to how much elliptical support there is and what the social response would look like, so i think within the year it's likely we will see some meaningful reforms passed. markets anticipate these things. they may help. >> that takes us to the question

of the bond market, which is a direct translation of what you see at the political level. you have a clear view of the market relative to the peer group of europe. talk me through your thinking there. .> i'm a simple person spain.ar i focused on just the market to focus on was spain. the year itning of was a market nobody liked and ended up being the top performer in 2013. i think spain is fully priced for what it is, has a good growth dynamic, but i think there is more discussion about italy, and i think that discussion is reflected in a bigger risk rhenium. risk premier.- the slope of the curve is very steep. that i think is the opportunity.

in all aspects of markets, credit markets, sovereign equities, i think italy is a place to watch this year. becausee is the focus poultry -- does mario draghi have enough evidence to provoke some kind of action, and from a goldman perspective, what action do you want to see? isi think the irony here rocky gets frequently asked is getse japan -- draghi frequently asked is europe japan. he says no. the strength of the euro, this is a currency people hate. they think it should trade much weaker. in that sense the euro is like the yen for the past that gates,

and i think that is the challenge of the ecb to get the euro down. get negative rates, but that will depend on what the fed does. we know the fed is fairly dovish. i think it's down to buying assets. probably the greatest traction they would have is buying corporate credit. >> do you really think the ecb would have the guts? >> i think so. >> germans buying corporate credit? >> it's easier than government bonds. the program was essentially getting into credits. sheetxposed their balance to a lot of credit risk, so this would be a natural extension if they get comparable later in the year. >> i caught up with the finance

minister. he said that qe is something needed. a you really think that is potential for the ecb? >> i think so. it across to the u.s., because a lot of debate about the data. how do you see the u.s.? think it is fascinating. we came into this year with the u.s. growthast of recorded in 25 years, some people are very much in agreement the u.s. will outperform in gross terms other economies this year, the growth rate being close to three percent. these forecasters have been challenged i week that i, and most of these forecasters to whetherhis affect. it is down to whether

distortions. whether that holds or not we will see pretty soon. the weather will get better as we go into the spring. theill find out whether signal and the noise are different. >> your job is to be ahead of the noise. you usually do quite well. take me had -- ahead of the noise. play your perspective on the u.s.? >> the honest answer is we don't know. i would side with the distortion idea. is the have noticed here u.k. has had the opposite set of .ata surprisingly strong figures confounding expectations, so if you look at surprised indicators, you will notice the u.s. is on the low. >> there is the lowest level since august, 2011.

>> in that sense there is a relative play, which you can reflect in cable, in short rates between the u.k. and the u.s., so if the u.s. does actually slow the u.k. won't be hiking rates. strong, theys catch up in the rate structure and currency will come from that side, not the u.k. >> let's talk about banks. we rent around the globe. you do it double. you love banks. >> i do. that's because i work in a bank. >> what you think about banks?

are all banks equal? could say there is a good and the bad bank. so far we have seen the weakest banks outperform. i think going forward there will be much more of a story of differentiation, banks which .ave a strategy towards europe the local banks more attached to local governments are the ones that underperform. qe for the lot of banks, and the u.s. seems to be a place of growth. and.st a quick closing, the u.k. hitting the highest since 1999. tell me what's different. maybe i am cynical. is different about these

new highs versus the technology 2000? in 1999, are these highs achievable? is the momentum there in terms of earnings? >> most of the performance has been driven more by expansion and less by earnings. earnings beingat in the driver seat from now on. have a huge inflow into the europe area. a cycle,the him in which has been sputtering along. m&ait -- the him and a -- cycle, which has been sputtering along. let's leave it there. thank you so much for joining us

today. the head of macro and market research at goldman sachs. coming up we will bring you the latest on the possible spinoff of sfr, coming up next live from berlin.

>> welcome back. here's some companies on the

move. the bank is seeking to buy a stage in the mobile messaging service. shares were up on the news. about 340 million users. it may be worth almost $50 billion. deutsche telekom is considering an alliance of the carrier hopes to partner with the start up in markets such as romania, though not in its own country, germany. deutsche telekom is hoping this might go to different groups. another company we are following -- earnings estimates. all eyes are on the companies. our international correspondent is in berlin with all the details. do we know any more? >> we just got a little hint

from the conference call with ofe ceo of a vendee -- vivendi. he said the plans to decouple track. still on the plan was a spinoff of the it out there, may be listed separately in the first half of 2014. this could be a negotiation. i stress good because what we had over the weekend and confirmed yesterday is that they have been approached about possibly selling part of their with or having a tie up the french cable company. they have been talking in the past. now with the ceo in the to meence call, it sounds like it is a little bit of a negotiating point or their true intention as they are in

discussion. it makes rate sense to sell it because they are getting hammered in france. they don't have the infrastructure to sustain it. they want the pipes. they want the cables. >> when you look at vivendi, they want the world to see them and take away the noise of telecoms which is so low margin, so it's just a question of timing, isn't it? >> it's a question of timing. it's a question of who their dance partner is. is altice, partner it is less significant. >> we have got to leave it

there. we will see you a little later in the day. , the executive ellector hans christoph qui joins us, next. .

>> welcome back to "on the move." i am manus cranny. bloomberg european headquarters in london. the ukrainian parliament is expected to vote on the new cabinet that is later today and campaigning begins for the presidential elections. that is for may 25. ryan chilcote has been following the story with each twist and turn. he joins me now. the run me through some of characters lining up. >> oleksandr turchynov is the

acting president. he is a speaker of the parliament. he is saying he was a vote today in the parliament. so we can start negotiating with the imf and dealing with the sorry state of the economy in the ukraine. whether they actually agree on the government of national unity today, keep in mind, a lot of course trade is another matter. that is what he wants. he is a colorful guy. he wrote a film that was based on his life. he is a technocrat. and his ability to get things done. he is an ally of -- there is the film. it was nominated for the academy awards but did not make the final cut. he is an ally of yulia tymoshenko, a noted person to watch. she is one of the leaders of the opposition who spend the last two years in prison and was released on friday. she said she is is not what be considered the prime minister's post.

shoes be to 50,000 people and said she would run for the presidency and then she seemed to backtrack on it. there are questions in there. and how many people really support her? there was a negative story about her daughter, she was actually staying at a swanky hotel in italy when people were getting gunned down an independent square and that did not sit well with the opposition. world-famous boxer, the word is he will run for the presidency. the guy, to pay attention to, governor. he is a russian region. this guy is best known for making a televised address to the people in his region a few years back. he was reading off of a teleprompter and kept messing up and was wearing and it was quite a comedy. a sickly, this went on you tube and went viral. he has become popular. headry quickly stop a new

of the central bank. it is important. >> he is also interesting. he was in charge of the protest camp on independent square. kind of like a mare, in charge of logistics. he knows banking well. he would be the man to lead the negotiations with the imf should he get the job in a week's time. >> it is all about credibility stop thank you. that is the ukraine. some of the top headlines today. the prime minister. matteo renzi won a confidence vote. legislative priority, in a speech, renzi said lawmakers should do more to end the stagnation. we believe italy desperately needs to regain confidence to access critical situation we are in. this a blighted country left in a sidewalk is constrained by a

suffocating bureaucracy. the german exports surged the most in three years in the fourth quarter boosting and expansion in the largest economy in europe. in the fourth quarter confirming an earlier estimate. it was supported by investors. off-line ahange went day after its ceo resigned from the foundation. efforts to reach its website director uses to a blank page. they said this month is identified with a bug that left it vulnerable. he distanced himself from the company as sought to reassure users of the virtual currency. black phone is the smartphone in a post snowden era developed in response to the nsa spying cabrillo -- revelations. the first to run free of carrier

and vendors. make and users to receive calls without being spied on. snowden case has elevated everybody's a wearing ess of the-- awaren world we live in. i've been writing about a desk, a feature where you have pervasive surveillance. the snowden documents have revealed to us that it is far worse than what we imagined. we have to push back against this. a black phone is a smart phone that has been created for the herpes all protecting users' privacy. it protects your online activities. the content of your phone calls is encrypted so nobody can water cap you. nobody can listen to the phone call except of the two people on. criminals have access to the same technology as the rest of us. the 9/11 hijackers purchased gps

to guide their targets. gps was developed by the pentagon. what are we supposed to do? stop selling gps? we think the protocols we are we have designed them as such a way that we hope and we think we have reason to think that major governments can not use your encryption analysis. there are other ways to break into files. when you push back, the technology tools, like black phone, we are going to need to do more and push back in the policy space. we have to change the laws. >> let's stay on security stop airline hyde is at mobile world congress. it brings germany all of its unhackables. >> thank you very much.

i have a great to guess for you. his name is hans christoph-quelle. these are the designers that help hack proof the german's black phone. with the ways out of making it a hack proof. angela reported that merkel herself has given it the thumbs up. we turn to hans christoph-quelle and thank you very much. give us an example of how you can hack blackberry with your technology. no impossible over phone lines or landline or thele, and we have solved issue last year with the blackberry solution. interviewed our word technology -- our technology which secures phone calls. have you seen an

increase in interest on the back of this and the back of the nsa fallout of people hammering on your door wanting to get a piece of the technology? >> we are delivering a broad especially good for government and also for enterprise customers. >> it is only available on blackberry 10. blackberry has been using market share. as you move into more enterprise space and institutions, will you go to other files or stay on android operating system or apple? >> exactly. there will be other solutions we will try this year. they are -- [indiscernible] not only blackberry. it is a really good product for government to keep it secure. it also secures your e-mail.

the whole aspect has been interesting. it is very secure. smart --ackberry blackberry? do you use it? is it that much more secure? exactly. the platform, the blackberry platform is so much more secure. the cloud introduces our technology. it makes it a really secure enough for the government. having totechnology work -- >> is technology having to work that much harder to work with android operating system and apple? the once we might use in our lives? differentide two spaces. we have one that is open. everything for the politicians. on the other side, you have an area which is highly secure.

and yourthe e-mail voice. that is the only problem. in an open world, access to world,ing, a more secure the government internet. >> which companies are the most interested? financial services? large corporations? with this solution government. we do not target enterprise but they come. nsa, those with huge spending. they are secure indeed. those are the companies. the other solution will be based on our platform. it will be more easy to introduce. >> morphing private, individual could come to you and show their own private data. >> there are individuals. [laughter] not a lot.

>> give me a sense about competition. are we starting to see more developers, technology coming out trying to launch? >> we expect it. it is really good. this is due to the revelations. people are taking care about their security of their privacy. activity and, you have to have it in your hand. wonderful speaking to you today. managing director. that going to be a theme runs and runs. aboutl be much more privacy and technology and our falls to protect our data. >> well done. you are having a great run for the next two days. we will see you later. for us. hyde breaking news. on russia and the ukrainian situation. will the russian foreign minister speaking on state

television. russian has no plans to intervene in the ukraine. he said he wants the west to start a non-intervention approach in the ukraine. needed. cooperation is cooperation is needed in the ukraine, these are the breaking news lines. as we understand, there will be a vote on the new government in the ukraine. said it willhey continue to grow. we will bring you the breaking headlines through the day. i will have a conversation and it will be with a chief executive on the latest earnings. it will be after the break. ♪

>> i am manus cranny. this is "on the move." pulse is at the top of the hour. that is under 15 minutes. guy johnson is in charge today. we have got italy.

it will trump the ukraine? of theine is at the top agenda. you look at what is happening in the country in terms of european politics and what it means for russia and you can draw a line to this story. syria and to iran. we'll have the latest of what is happening in the capital and what is going on in the country. what are you craving is thinking about in terms of the russian reaction. we have a ryan chilcote. what's the latest from europe? how are the russians playing the story? we have john hardy. he will have the international angle from the economic point of view. what will it mean for the currency and would be a default? how are the markets positioned? we will get to citigroup. we will talk about matteo renzi. we had to the big speech

yesterday about a disappointment. what do we get today? can he deliver what he says and that is the big question surrounding renzi. ukraine is at the top of the just and. -- is at the top of the agenda. >> never far from the tech story. pulse agendas -- to vivendi. the outlook is the ceo and he joins us from germany. great to have you with us this morning. are takingow you away some of the trading business later in the year. talk to me about the earnings momentum of your company if they take away the elements. the bigger picture. what momentum? >> the bigger picture is we a

half continued to grow. wiseve grown no volume a in 2013 and we had currency effects. into 2014ors going and we believe it will improve. it will continue to grow. that is the bigger picture. oil and gas and that context is important. as you said, we agreed with our partner to trade our gas trading business. we will soon have additional resources to be able to attract business. it is a of earnings, lot of -- more than 10 billion euros. it will go away. that seems to be nominal restructuring that we've seen over the last 10 or 15 years and going on every year. >> would you look at the world, the great debate is the u.s. recovery.

how you plan for your business and you cover in china and that could have a landing that we anticipated and lots of issues with property landing -- property landing and to be landing economy. what is your take, what do they report back to you? >> in north america, we have seen positive. how we grow very different from 10 years ago. not just because -- [indiscernible] we have resources. we see continued growth largely in construction and automotive in north america. a very good solution for alsohing business which is heavily engaged in north america. china has been in the one a big growth story of the last 10 years. we have invested heavily. we have seen good volumes.

we continue to grow. as we speak, a little bit more as we get to the broader economic picture for china. more concerns about the growth picture and the growth pattern and therefore, we are not disappointed but we really see a change and will a more quantitative growth. about what thelk investor can expect from your business. you are generating cash. what i want to know, is it buy back or momentum in dividends or should we expect you to continue to do acquisitions? >> we have seen continued improvement of our dividend and we announce a noted increase. that is going forward as well. we have a program a couple of years ago because we are focusing heavily on growing.

of four bit higher point $5 billion last year. this year, we see opportunities not just in emerging markets but in north america. we continue to grow the business fewisition, we have done a small ones in a 2013. i cannot imagine the same happening in 2014. >> the other things investors look at in your business and we know it isn't transformation a you are letting people go, where can we expect you to trim back in 2014 and terms of staff and expenses? >> several restructuring programs including headcount reduction. this continues especially in the performance product business group.

it is a more specialized this is that we have a restructuring needs. we heavily focused on continuing cost saving programs underway which are implemented according to plan. that is simply necessary to improve our bottom line. going into 2014, we will continue restructuring. that is the cost of business. >> the cost of normal business. kurt of basf. great to have you with us. stay with us. the final thoughts. stay with "on the move" for everything for your trading day. ♪

>> welcome back to "on the move." i am manus cranny. ofe for a recap of themes the day. johnnie, markets are generally lower. we are run up extremely well. >> we have. listen to the guests we have have -- we have. they can tell how justified they are. we have seen the bad weather blamed on weaker data. is it a bad whether a or is it the economy losing traction? right now, nobody really knows and nobody will know until the weather gets better. side, ae politics

momentous day in the ukraine. where are the rush is on the debate? juste foreign minister spoke and he said russia has no plan to intervene in the ukraine. if you look at the real politics of the situation, russia has discovered soft power and the ukraine and notice it will be more effective. they get their gas and russia has offered them aid and they need russia on board. they do not want to alienate russia and russia understands. the russian stock market -- the ukrainian rush -- and the ukrainian stock market is off. yesterday, it was up 22%. on friday, 5%. ladbroke, we will talk about that. >> thank you. stay with us. guy johnson is up next with "the pulse," more breaking headlines from russia and the ukraine.

what is going to happen it in italy with mr. renzi as he goes through his agenda and second confidence vote in 24 hours? stay with bloomberg for the news. ♪ . .

>> work in progress. ukraine may now not get a government until thursday. this according to the interim president. another blow to bitcoin. gox,op exchange, mt. suspends trading over an apparent theft. and the $19 billion bargain. facebook's founder says he got a great deal on whatsapp. deutsche telekom seeks an alliance with its latest acquisition.