him sink or so. >> we are seeing the reversal. talk to me about the little corporal. >> is a beast of a mining company. into taken into back focus. it rises by 20%. he struck out all of the variation. it missed estimates. indeedare a shareholder, eight percent of the company. 100 $82 million from $173 million stop by to keep track with the russian billionaires under pressure.

the main thrust of this from going core is cost-saving. long-term organization. growth and develop markets are coming back. the rest is going in one direction. the other end opposite. this man is doing exactly that. a big production. the rest of the world is stagnant in terms of production. this man is going in a different way. saw spanish jobless because it was better than expected. jobless claims fell in february. at first, we saw a rise. we are watching ukraine and glenn core. is situation in spain getting better. slowly getting better. that is what the jobless claims are saying. what else are we watching? >> happy data for spain. let's check that the exiting markets. what had a bit of a rebound.

down by over 10%. the biggest selloff since 2008. where expected a rebound in equities. the cacse in paris is higher. is closer. where expecting a higher open. the biggest selloff on the dax since 2011. the weakness we saw yesterday. is the and of the escalation risk. the russian military was scheduled today. seeing a reverse and least and equity. the same kind of moves and the market. lower today. the steeple move down by 0.1%. money and the havens. by zero .8%. on the back of the news. .oney coming out out of the yen.

dollar/yen is moving higher. not just about ukraine, a busy week. bank of england on thursday. payroll claims with plenty of event risk. >> the very first look of the markets. european stocks getting up. our top story of the day. developing crisis in the ukraine. ryan chilcote is an etf. what can you tell us -- is in kiev. -- what can you tell us? putin is recalling the troops by the end of the week. >> the recall of russian troops under president putin, he was there yesterday. a bit of a direct bearing. some investors thought it was troop in crimea and was not troops and crimea and we saw oil go down. the assumption those were troops. we got a military buildup in crimea gathering speed.

hasukraine said a russia 16,000 troops on the peninsula. and ukrainen town will ask for $3 billion and expects to get it. enough, the u.s. secretary of state john kerry arrives and to talk about how the international community cap pop-up ukraine and be looking to hear from him about how he intends to punish russia. talked about sanctions. will be looking for more details about that from him during his visit. very quickly, the situation, does it feel under control, the markets seem to think so. is it because of the selloff yesterday because markets are pause?day apu -- a >> crimea is effectively under russian control.

the next question is, are russian forces one to the east of the company -- of the country and nobody knows that. >> ryan chilcote on the ground in kiev. headng us is mark, global of investment at ubs. great to have you the program. thank you for coming on. talk about ukraine. this really took us by surprise. the last two weeks it has been escalated. it is very serious. we're talking about sovereignty and borders. the markets reaction yesterday seem to may be have been overdone if you look at today's reaction. meeting around the clock of that's because we have heard people talking this was the black swan that upset the market in this year. we do not think so. the scenarios we have run, we see a 50% chance that things are contained at this level. russia stays within the crimea

and the imf package it gets done. while there is a recession, this has limited impact for global investors. perhaps a 40% chance that there is somehow an interruption of payment for the ukraine. that would impact emerging markets perhaps those investors who have equities or bonds in russia. and we see a two percent chance that this escalation was the signs are, does russia move troops beyond the crimea and we are looking at the scenario that will impact the risk premium globally. >> what did you tell people that said economic sanctions on russia are not going to do anything? squeeze thee, markets like they did yesterday. >> i do not think anything squeezes anyone the way the markets do. they're the ultimate arbitrator. we saw that yesterday. the russian equities fell. the ruble hit a low versus the

dollar. the market has weighed in on this and that put boundaries on the crisis. at the same time, putin is engaged in politics. we have to believe at this point it will reach a rational and and. >> for the next two months, how do investors play their portfolios given what we have seen? do you stay put or buy more gold? >> uh huh. one of the things would've looked at our assets in russia. they entered the crisis with attractive valuations. yesterday, a fall further. we are seeing russian equities trading at 4. this a very high probability that over the six-month period, will get recovery. if oil prices stay over $100 a barrel, that will help russian companies and the economy and that is what we are watching closely.

>> mark, thank you. he will stay with us. what asked him where he sees value. ise's a look of what else coming up. we had to the geneva motor show with guy johnson. ♪

>> i am francine lacqua. this is "on the move."

of our main stories. we are watching ukraine and heading over to guy johnson at the geneva motor show with a special guest. >> thank you very much indeed. yes, geneva motor show. let's talk to bmw. carmaker in the global luxury sector. let's talk to the head of sales and board member, ian robertson. good morning. what do you have for us? ies,e have the bmw 2 ser first frontwheel drive bmw and a lot of space. higher seating position. a lot of flexible seating arrangements. and lots of new customers we think we can bring to the brand. the 4 series which is a sport coupe with two extra doors. a very flexible offering.

still great success with the 6 series. we think this can work. .> a big difference you beat mercedes last year. will we see these two cars doing similar things this year? >> i think so. we brought a lot of momentum out of laster. later, we show the next part of our family. runaway success. i think we can continue to move ahead strongly. >> is 2014 day european car market gains traction? the first signs of recovery. not in every country. it is continuing this year. spain, 1/3 precrisis level. 1% off.een we see challenges in france and italy. germany, i think we'll move --

will move a few percentages off. whimsy a turn in your what a by no means will it be over -- we will see a turn in europe but abide nobody's willing to be over. >> you talk about spain. good contracts driving. that sustaining organic story. chris the interesting parallel if you look at both sides of the atlantic, the difficult times as in the same time. the u.s. and this year is probably on the precrisis growth the level. europe, same timeframe is on the bottom. i think that tells the story right. it will probably take a couple of years. but how much exposure to russia? >> quite a bit. we have strong sales and we see potential in the market.

the dynamics of the market is under somewhat of a scrutiny at the moment. having said that, we look for the longer-term. the contingency planning at the moment. if the market was taken away right now, how big a difference would it make? sayt is much too early to what is going to happen in the ukraine. it only started to develop. let's wait and see. technology.out you are ios. does that mean that an android user cannot buy one of your cars? >> people's integration of their handsets is something that is a personal choice. some people lie one l some people like -- some people like wine and some people like another. and some people like another. >> you might be a bit of disappointment will start >> -- disappointed.

accoladesin a lot of and we like to do that. other people when things too. it is a competitive rates. something that is exciting. >> the production presence of the car behind you? >> a good car we are producing. 75 units a day. demand curve is strong. we are rolled out around europe. the pipeline for the united states and will launch the car in the second quarter in the united states. ofhave roughly six months orders in the pipeline and we are very pleased with that. it is doing exactly what we wanted it to do to great a news segment. >> what did you make of the announcement of the massive factory? the details are a little vague. what is bmw's take? >> we are the bulgarian motor works. we produce electric motors. we invested heavily to produce

the body shell of a car. we decided to buy the factory -- batteries. that was our choice. we believe the batteries are developing quickly and therefore, that is something where you need a high-volume scale. you the tesla is doing, have to ask them. they are making steps into this and that is preparing the marketplace for the growth of alternative engines. >> you the batteries are the way to go. toyota has unveiled a fuel cell story. has been dismissive about it. >> one thing we are clear about it the combustion engine has a long way to go. we think hybridization in one form or another will be across the wider range of products in years to come. we are researching fuel sales with toyota is part of our agreement. that tells you were not pulling one basket.ggs in

that will be different technology that nobody is talking about the yet. one thing we are clear on is it will be multispectral, the future. much too early to say this is the one thing that is going to be the future. >> too early so we will handed back. >> our intention in 2014 is to be number one. sales robertson, head of at to bmw. >> 2014, number one. not bad. thank you. speaking to ian robertson. after the break i will be back with mark, of ubs. we'll tell russia and carmakers and why he sees value in stocks that fell last year. ♪

>> welcome to "on the move." i am francine lacqua. let's get back to our main guest of the hour. mark at ubs. than $2 trillion of assets. thank you for sticking around. theere talking about implication of ukraine and russia and what it meant for global selloff yesterday. is the russianrn

investments. what do you do with them at this point? telling investors to stick with positions especially if they are focus on emerging economies that could pick up more exposure given we do not think the crisis is going to extend from here. stay a 50% chance it will at the level. the valuation now is very compelling. >> in terms of your best bet globally, is it the once that were hard hit last year like a european equities and recovering stores? >> -- stories? >> all you have to do is look at the indexes last year -- yesterday. this has been our focus for some time now. the u.s. assess was the improving economy and we saw yesterday. we have consumer spending. the picture there is on track. of growth.

there will be noise around the weather related defect. we like u.s. equities and high-yields and overweight the dollar. as the primary focus right now. >> valuations are more expensive . do you prefer european stocks on that fact they seem so much cheaper if you pick the right one? is another equities area of focus we are overweight to stop would've seen, the recession and within margins will improve. we think that will show profit going for. we have decided to recovery in the periphery. you cited data today in spain. this will help europe and proof. we also think global growth will improve. exposure inlical the atlanta market. they indices and that will help the index as well. >> if you look at growth in the u.s. and europe, the european

who one is that much weaker. do you see the trend is growing nicely or will we see had went along the way? >> the european store will be more volatile and more difficult because well from around one percent and you are bumping around the bottom and people are going to question that. when you have a change from a recession to growth, typically see companies able to expand their margins and settlement growth. we think there will be positive surprises. >> what industry groups do you like? industrieske to exposed to cyclical exposure. things like discretionary income and cars. have that exposure. they are more favored by us. we like i.t. and we did it will benefit from an increase in spend. sectores at a valuation that is probably near its 20 year low. >> i.t. but not tech?

>> tackle broadly. >> tech seems expensive at the moment. it's a big names that we focus like facebook and twitter that seems overvalued? is there something of a tech bubble? are you concerned? because it revolutionizes the way we consume and the way we live our lives, it may be 15 or 20 years down the road that the bubble burst if it burst. >> in the past couple years, we focus on central banks and interest rates. thee's been a revolution in markets where the nasdaq has really outperformed the s&p 500 and i think that leaves two ipos a tremendous levels. on the other hand, when you get away from central banks and away from politics, what drives growth in the world? that is technological advancement and the market has

shifted back from that after the crisis ahead of many economists. there are some still underlying forces. thise next 10 years, with he one billion more people get onto the internet. those forces, it will dry speculation, it can drive real growth. >> talk to me about it the u.k. you are underweight. story we is a simple have to balance our overweight and in the u.s. and europe with somewhere and we chose u.k. companies,income for from abroad and the u.k. recovery has been so strong it lifted the pound so much and within the unders -- earnings will underperform. >> that is what the bank of invalid is worried about. impact with that kind of of exports. talk about developed markets like china. we went through developed

markets. what does it mean for your investors? does it look a little bit dangerous? tapering more than we expected. especially the markets that do not have the structural reforms. >> i think there are two perspectives and him what to do global investors need to know about emerging markets? is the story going to disrupt the global story? the answer is, no. we see look at china, growth at 7.5% in line with what the government have explained. we have seen the government intervened were so the products have had problems. we do not think china will derail the overall story. secondly, we have had many problems in the markets coming together at the same time. venezuela and ukraine. these are isolated and separate incidents. we do not see these type of things disrupting the global

story. however, there is a fundamental issue which is and this time of low interest rate, emerging markets did not really finance or take advantage of the rate. there are structural imbalances -- >> thank you. we will leave it there. ♪

welcome to "on the move." >> -- >> welcome to "on the move." i am francine lacqua. let's talk about ukraine. our main story of the day. let's focus on the ukraine. there's been buildup but with john kerry visiting the capital for the the imf means with the economy minister tomorrow. ryan chilcote sat down with the minister about the meeting and about the fate of ukraine finances. >> we know all of our debt

obligations. we know the reserves and that we have. if we repaid all of the debts, it will be zero. [indiscernible] it is a geopolitical problems. from what they hear from the worldand the western, the said it is a problem. >> people are talking about this effectively increasing the impetus and need. in a way to strengthen your game with the imf. >> we wish it would not happen. we do not to delight. is the sense now international community is more prepared to help than they were before russian troops arrived? delegation.see the

we will probably see them tomorrow. the factor that -- [indiscernible] >> for more, let's go to ryan who joins us from the phone on kiev. update as of the situation. >> we have a tense standoff in crimea at the airbase. a beta that was taken over by ration troops. an air base over the weekend. and of the last couple of hours, a group of 300 unarmed ukrainian soldiers have a marched to database in an attempt to take it back. that was stopped by a group of a dozen russian infantrymen who have told them they must turn away and recently fired warning shots. these warning shots were not in the direction of the ukrainian soldiers. nonetheless, they represent an escalation of sorts. at least the first shots and

that have been fired into this conflict that i am a ware of. >> meanwhile, the you and met in new york to start -- united nations met in new york. >> it was interesting. must -- mostly about the justification that russia provided about being in crimea. it is twofold. the ambassador to the united nations said ousted president yanukovych who fled the ukraine about a week ago asked president putin to intervene militarily. him to bens consider the legitimate president of the ukraine. if he asked for military assistance, they believe that is good reason to go inside of the ukraine. they believe that according to a 1997 treaty that allows them to have a military base in crimea, they're allowed to have up to 25,000 soldiers on the ground. ukraine said russia has 16,000

troops so the russians believe that can bring in some more. >> thank you submodules to a. we understand president putin is about to give a statement. -- >> thank you ryan chilcote. crisis is affecting markets, i am joined by jon ferro. today, markets looking more upbeat. >> yesterday in reverse. when you see a big selloff usually see a big rebound. the headlines come out around 6:00 u.k. time. exercises were scheduled to finish today. the reality is you have 16,000 russian troops and crimea. right now, some the escalation rates -- risk has gone away. you are seeing a rebound. the economic reality outside of markets is the russian economy is struggling. we had growth of 5% and is down

to normal one percent. when using a central bank that has to hike rates as aggressively, that will do nothing for russia and the russian economy. >> europe, we talked about sanctions and eight and people saying can we afford to put the sanctions? we are so dependent on russian oil. what would he do? >> when the international coordination. russia is not iran, and the eu is dependent. a third of the gas imports. where is the leverage? thee one is the weather, spring. with had one of the mildest winters. we have a stockpile of gas. one analyst is saying they could buy 45 day of supplies. you saw natural gas move by 10%. thisnk the bottom line is

-- somebody is talking but how to punish russia. if it escalates and political risk, the biggest section that could be imposed if investors are boycotting rush altogether. that is what some analysts are talking about. that could be key. what is going on in russia a ukraine, the russian economy with the big challenges. >> a big challenges. yesterday felt like a session. imax fell. it will hurt those close to putin. thank you. the bloomberg top headlines with the secretary of state john kerry is set to today.and kiev they are trying to pressure russia to deter military ukraine.n and -- in president obama is warning a russia. this will be a costly proposition for russia.

and now is the time for them to consider whether they can serve their interests in a way that resorts to diplomacy as opposed to force. said it europe has enough natural gas in storage to cover any future disruptions in the ukraine for 45 days. gas prices jumped the most since 2011 yesterday on concern mounting tensions between the ukraine and russia may disrupt the supply. 16% of accounts for european demand. goldman sachs predict a will contain losses in the ruble after the currency site is big a declined and 29 months yesterday. russia's scituate bank raised the rate by 1.5% and sold billions of dollars in currency market while the ruble 10% slide has been triggered in part by the of people in the ukraine.

>> 100 days to go before the world cup kicks off in brazil and they are expecting more than 500,000 taurus. with work still to be done on stadiums and infrastructure, will brazil be ready for smart -- and be ready? david tweed is standing by. >> good morning, francine. it is the international investment forum, more than 2000 delegates are here. a lot of deals get done which is why fernandez who is in charge of financing and investing promotion or department of tourism in brazil is here as well. first of all, these 100 days until the world cup, on a scale of one to 10, i want you to be serious, how ready is brazil? >> i would say 8.

we are going to reach it. >> what about some the stadiums that are not finish and infrastructure from transported that is not finished? things brazil promised to do. affect? this is something very common in brazil and we do last minute things and everything works at the last time. i am very confident. facilities and everything. >> you are looking at how many tourists do you expect to come in? >> around 600,000 foreign touristss. >> a where are they coming from? >> number one is the united states. many brazilians coming to visit. was brazilians coming from the united states? >> americans as well. europeanbout contingents?

>> many spanish people as well. >> tell me, within the investment you have been making, you are looking to open a lot of hotels on the next few years. how many are you looking at? >> we're expecting around 400 new hotels in the next three years. not only for the world cup but to the olympics. but i heard you are looking for financing. what kind the interest are you getting at where is it coming from? >> we are getting investments from all around europe and the united states to stop -- states. >> we are talking about hotels, what sort of hotels are attracting at what level? >> the trend is for economy hotels to grow faster than luxury ones. >> economy hotels?

catering to a lot of tourists coming in for the olympics and world cup. what is brazil offering in terms of tourism after? >> we are expecting better transportation, better infrastructure in general. cup and that the world olympic games will leave for the country is significant and we are betting on that. we are waiting on more tourists to come. >> are there indications you will see that? a lot of people look at the investment you make for big events like the world cup and the olympic games and wandered given the fact there are protests and so much controversy surrounding if it was worth it? common in aare very democracy and it shows our democracy is strong. of ournly an indication

political development. we do not think it will affect the tourism and of the country. but we are seeing a drop in the brazilian currency over the past year. is that having any impact on the number of tourists you are expecting? >> actually yes. we are seeing a growing number each year. year, we reach 6 million which was a record. we expected to be even better because of the sporting events. >> you are looking at 6.6 million? >> that is the number we have a. only for the world cup we are going to have 600,000 more. >> what kind of represented? >> 10% of growth over the next three years. >> ok. let's talk about the world cup. there must be an awful amount of pressure on the brazilian team.

not only are they the host of but a favorite. are they going to bring to live up to the expectations? >> we like pressure on our team. the couple last year showed we do not have the better team but we played the best team playing. have the home advantage because no european team has ever won the world cup in the americas. that was a piece of football trivia i bet you never expected from me. >> i am very impressed. thank you so much was that david tweed. and now, let's get to some the other stories. -- more on thel results coming up next. ♪

>> welcome to "on the move." i am francine lacqua. germany's biggest power company reported its first annual loss in more than 60 years. that follows billions of euros in write-downs. our markets editor manus cranny. the first loss. 60 years. , it was likeell us the bus is coming. the question of how hard will it

smack you. we know the structurally the energy market is changing. the loss isn't there. what is more important is the on tohat rwe is holding the guidance and they gave. , the current net income. they said we will make one point $3 billion. that is incredibly important if you are a dividend or stockholder in this company. kitchen seek is a colloquial term for dumping everything that is bad. if the with gusto. it is making savings. and howfunction exciting my life he gets on tuesday. renewables is a part of the business. it is barely 1%. record.ibility is at a that is according to bloomberg

industry. that has a significant tale. new business is making record profits and expenditure is also at a five-year low. mothballing old plans. getting ready for 2022. why do i say that? germany comes off line. >> i was going to ask you about that. is a story about the german energy market changing completely. >> if you think about the edict -- green power wants to constitute 45% of energy production. up from under 25%. with energy.ution energy prices have been coming off a month after month. down by 15%. that arose profitability. those are challenges at rwe and the whole of the european

complex as well. they are hugging the guidance. >> manus, thank you. se" is coming up. we have a cracking line of interviews from the geneva motor show. >> yeah. we'll talk to reno. a car company with significant exposure to russia. heavyy regret the investment -- investments they make? looking forward to that and looking for insight into this manufacturer. we'll go to the other end of the spectrum. lamborghini. they have a new car out. it is out and we will see the car. that will be what 2014 looks like. owned by bmw. bmw has given him the green

light to produce an suv. everybody wants to produce an suv. what progress the company is making for that. and rumors that they may produce a four-door to compete with the panera. the story here at the motor show is the european markets gaining traction. maybe the russian story could upset it. i am looking forward to it. >> guy johnson. thank you so much. releasestching as it its full-year earnings. i am joined by a bloomberg reporter. the market has reacted positively to the results. what is it seeing and talk to me about the conversation? that is what people want to talk about. quick significant it beat on the numbers. very positive on that. driven by results. cut costs better than expected.

a significant positive was the synergy number. it is 2.4 billion dollars. the number they put on the record up from $2 billion. the dividend, $182 million. >> not bad for a couple years of work. >> he is the biggest shareholder. by company is 25% owned management. a mine,to talk about give me a sense of eisenberg is a man. he goes counter to what the market is doing. he said people are risky. >> that's exactly right. he has been ceo of the company for over 10 years. it has been this countercyclical strategies. evidence of this

which is a big bet on coal. a lot of people were in the market. >> one of the key catalyst for the stock was the potential for compromise. what did we know? >> not much detail. no roadblock and the talks and speculation in recent weeks about a snack. he said talks are ongoing with china and they will sell with the right price. >> i did not know you spoke to him afterward. in a good mood? >> yes, quite bullish. very upbeat. >> jesse. great. the latest from the figures from glencore. stay with us. our final thoughts are next. ♪

>> welcome to "on the move." i am francine lacqua. for a recap of the a list of market movers. cranny are both here. the market yesterday, a huge selloff. a big selloff in europe. today, back to normal. but we have a collie here who called it on balance. whatve got a reverse loan we saw yesterday. -- >> we have a colleague here who called it rebalance.

we have got a reversal of what we saw yesterday. from russian military, the exercises were scheduled to finish the day. you have 16,000 troops in crimea . whenever there's political risk -- >> some having an impact on commodities. a lot of pressure on oil companies, oil in general. today, not so much. what onee see in typically sees is the immediacy and markets. their ability to get themselves to the point of where they are prepared for the worst case scenario some nobody, absolutely nobody, nobody knows what is going on within vladimir putin. nobody. time to de-escalate the situation. it got too quickly. markets are slightly ahead of themselves.

>> and that is true. we have to keep an eye on all of this. why itr putin, that is is so difficult for the thank you so much. stay with bloomberg tv. "the pulse" is next. ♪

thousands of troops remain in the ukraine. leaders andr's best the imf again a special message -- mission. have revenue flows in the rearview mirror. welcome to the pulse from the european headquarters in london.