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. geneva we had a

cracking lineup so far. is the european car market is recovering. there is a glimmer of hope. he is going to be producing an suv very soon and the global markets are developing. we are talking to a higher die. what plans do they have this year? we will talk to renault. this is a european car company that has made a big investment in russia. are they regretting the investment and how will they manage the situation as this tory develops in the ukraine. how carefully are they watching every move that could and is making -- that vladimir putin is making?

that could upset the apple cart and it will be a great show. >> looking forward to it. let's get more on the top story and the standoff between the ukraine and russia continues. vladimir putin withdrew soldiers soldiers remain in the crimea region. -- crimea region. a tense standoff in the crimea. base in crimea was taken over by russian troops and they took control of crimea. unarmed ukrainian servicemen have marched towards the base and are demanding it back. they have been met by one dozen russian soldiers and no one is

denying that there are soldiers anymore. fired warning shots and they were not in the direction of the ukrainian soldiers. they are, as far as i know, the very first shots fired in the conflict and give us a sense of how tense and tenuous and difficult things are right now in crimea. >> we also had the imf getting talks and what can we expect from that? >> they get underway and it is interesting timing, considering the military presence in the south of the country. what we can expect, i have been told by a person familiar with the talks, is for the ukraine to ask for and receive $3 billion, the first tranche that the ukraine expects to get from the imf as part of a financial aid .rogram that ukraine has asked

it would come in at $15 billion. this is after the russians 15 -- the plug on their $15 billion program. the russians did pay when you ninkovich was in power -- when victory in the coverage was in power -- victory viktornkovich -- yanukovic was in power. we have a little reprieve today. bylook, yesterday was driven the risk of escalation and today , people are looking and thinking that it is diminished. perception is in these markets right now and you see equities higher in europe.

financialo say, markets are on one side and the russian economy has its own issues. the central bank came out and had to hike aggressively and that might help inflation. it will not help growth. they came down from five percent and they have big economic issues. yesterday it will hurt russia and her the billionaires, as well. you saw a big stock falls. say, the western markets. >> they are saying that there could be one of them. on the sanction side of things, where is the international policy coordination? to threatening serious consequences, it is worth thinking through beforehand. this is primarily because of the gas issue in europe.

one third of their gas needs from russia and how --h leverage to the helpful do they have? i was talking about and we have 45 days of gas in europe if supplies are disrupted. at some point, financial markets decouple from geopolitics and that will not take away what is going on with the ukrainian and russian economy. we still have a tense standoff , youhe political risk could never know what happens. vladimir putin makes rules and changes what he wants. what difficult to know he's thinking. >> to balance this out, russia, -- ishey are doing is in

legitimate in the eyes of the law and they talk about this with the eu and the u.s.. there will need to be a discussion about this. it is well and good to have john kerry going out and talking about these sanctions that he will impose. if you are not on board with them, where we you go? what is the million-dollar question. >> it is manus cranny breaking down the numbers. trough interrupt and they missed on the numbers. if you look at the details of , the pain comes in the first half and it comes in the first half when they took the pain on the chin.

make costthey would savings and also, the world is looking better and they are it.ing with the other issue is what they are doing with the assets. they are synonymous, really. don't worry. we are on track and are having discussions. are is $5 billion and they going to get ready for are nearly at the point where they can sell. that is what they are telling us. >> the strategy is different. but it is ironic. had areersation i have going to be more prudent and pull from capital expenditure. x -- that -- they have

cap acts and the strategies are 25% of aing assets for coal miner and they have huge tonnage is of coal because they bought into the deal. this is as china says they will use less coal. it is going in a fundamentally different direction to bhp. >> this, of course, means that they received big bonuses. >> it is a few more than where i live. 180 million dollars is up from 173. and is capitalism at work

in 2002, he took on the company. he is a traitor. i applaud these things and he is the richest man on the bloomberg list. shareholders voted this man back into the job and there is a reason why. >> thank you so much with the very latest on that. their firstted living loss -- yearly loss in 40 years. the murder trial of oscar pistorius resumes today and yesterday, one witness says she heard screams on the morning that the girlfriend was shot.

he has pled not guilty. the most has become expensive city, according to a unit. a stronger currency and utility bills pushed into first place. other cities are at the top five. top gear, we're back at the motor show and guy johnson has an all-star lineup of guests. once we certainly do. we will talk to the fifth-largest carmaker and russia has a new carbon fiber. we will be back after the short break to talk to that.

>> good morning and welcome back. you are watching the pulse live from geneva 2014 and the motor show is heating up. this talk to the world's largest carmaker by volume. the car that you brought to geneva. web start with the products. you want to talk about this being revolutionary?

compact what we call a crossover and it is different because it has a compact hydrogen fuel-cell and it is designed by a guy called peter who is the top designer in the world and happens to work for us. but right. -- >> right. that uses hydrogen to make electricity and has a greater range. means,s of what this this will not be mass-produced for a few years. what is it that you are looking at and how do you make the transfer to getting this technology to the mainstream right now? >> it is quicker than other manufacturers and it is 10 years away.

thes determined by availability of infrastructure and we are building the cars for sale in europe and you can buy one of these. in the medium term, we have efficient gasoline and diesel engines and we are looking to bridge the gap with hybrids and her pride sherrie hybrids that we will have an market between 12-18 months. pushing hard to make europe a bigger part of the foot print and they are 2-3 around the world and your challenge is to get to that position in europe. can you get to that? >> there is no doubt that we can move forward and we see an opportunity with great value and low emissions. opportunitype is an

and we have to hit a market share by the end of the decade. years ofive or six with therowth positions globally. >> what do you make of the market right now. there is signs of the recovery emerging. a similar story in other parts of the world. and does it become organic when does this become self-sustaining? twoe anticipate percent-three percent growth and it is a reality that the european economy and the global economy is hardwired into the global car market. it reflects the other and there is a lot of volatility in the car market and incentives.

is at the market incentive levels and we have a good position to grow. healthdependent on the and the growth of the european economy. >> one of the things that has driven the market is the contracts. you pay off half of the car and then the half is on the next one. that drives car sales. do you think that will happen and generate a similar story? attitude towards retail finance differences -- differs from one market to the other. it is a question and we have financial penetration that is across theund 13% whole of europe. it is negligible in our major

markets and we have a joint venturer there. the spanish bank. i believe there is opportunity and we will be the way for consumers in the view of vehicle utilization. is not your thing, you look after your. you guys are number two in russia. with regards to the russian markets, making you nervous? >> is not my immediate area of responsibility and it is a big place. ago, the russian car market and the global car market was hardwired to the economy. nonetheless, we believe there is it willnt growth and give us continued momentum in

sales growth and in the months and years to come. . do not see it product,ing a luxury it is a hard place if you're trying to compete. what do you expect to learn and what you take away? is it a learning experience? is it a bottom line? us, we have a product that is engineered for the home market and we have sales volume. demonstrate the technical capability to the consumer and really use the vehicle as an opportunity to develop our business beyond positioning today to affordable challengend not to on local premium brands

their home turf. that would not be good. but then he have tried and few have succeeded. we will wrap up there. thank you for your time. the coo for europe. we will talk lamborghini we come coo and we will talk to the who is a new car in geneva. we will find out what he is making.

>> welcome back. streaming on your tablet, your phone, and bloomberg and it is a time for a look at hot shots. the championship concluded in dramatic style. spain inherits the gold medal. winning the competition with a black guy. 65,000 kilos.

the battle of the oranges was the main events of the historic carnival. pilots push their airplanes to the edge. between -- to we've at 370 cloners. while. -- kilometers. >> in a word, perception. has gone back.k there are troops in crimea. in european equities, we have a rebound. the dax is up. it is the biggest selloffs in

2011. the lost his not completely erased. it is coming down a little bit. a lot of money is going into cold yesterday. in fx, we some money going in. the dollar yen is up by a third of one percent. we have the bank of england on thursday and payrolls. >> thank you so much. we will certainly be busy. we will start your engines and be back at the motor show. find out why he has high hopes for the newly unveiled product. branson andichard the island hideaway venture for animal species.

that is ahead.

>> welcome back. seeking loans from the imf and the country is looking for a loan. the minister spoke to ryan chilcote. hearing is that people are talking about this.

>> there is a need for the ukraine and it strengthens your hand. that we had troops to help us. >> that is the economy minister meeting with the imf today. disruptions from the ukraine. prices have jumped the most and yesterday and there is a concern that mounting tensions may disrupt. for 16% of european. the biggest decline in 29 months on monday. the central bank raised their key rate by 1.5 percentage points and the ruble has had a

10% slide this year that was triggered by of people in the ukraine. , elliottve been gotkine joins us. >> thank you. cofounder and he joins me now. it is good to have you now and your company automatic the edits video after it is shot. >> it is a stunning thatsticated technology works as an editor and edits the video. it says what the storyline is video that is funny or sentimental. dullis is a particularly video that i can show to give an example.

it was shot earlier this morning inside of our office. your 20 million users and what does that translate to in sales and being profitable? create andant to upload more photos and videos, you need to. ofsee a nice percentage users convert it makes is one of the top worldwide. it is something that we will add more features to make it more powerful. >> $22.5 billion already. areessive ventures and you looking for more. >> we are trying to add partners

to help us build the business, in terms of connecting to existing social media and the photography business that interest.e company has a deal with the russian facebook and we have embedded the social network so that all the photos and videos they get into the network are itned into videos and inputs into the first of its kind. does that make dollar signs? >> when it comes to valuations, people see it differently and the values that you can bring to

companies like facebook and other giants in the market depend on how you can increase the row you. that is how we think. the services can increase the quality of every type of media that arty streams on a social network and video site. i think that this sets a high bar that is achievable. >> in terms of where this is asng in our profession journalists, we spend a lot of time as editors. will your software do the job for us? >> i do not think that is the case. thean start taking over the loan consumer movie. editing millions and millions of movies that are not being edited.

and itnot doing anything is a sad state. we are changing that. >> the ceo and the founder. thank you for joining us. it is good to know that we are not out of a job yet. >> all right. i do so much for the very latest from tel aviv. let's go back to the motor show and guy johnson is there with another big guest. >> yes. we are joined by the ceo of lamborghini. is a great pleasure to go down and drive last year. now, the car company has come out with a new car and we have the hurricane. it looks like a nice car. how many of these are you going to sell? >> things are going well and in the presales activities that we

the two months until now, we have collected within 1000 orders and this is good for the future of the car. >> it looks kind of like another car. are you going to introduce a four door at some point? >> it does not. it is appreciated because we love it. the 610 is the most successful lamborghini in the future and things are going well because we are investing in the mid-and car-term because the sports market is about design and performance and you can achieve only dream cars and visionary cars if you are a leader in the technology stop this is key. if we speak about the car that

we are working on, we are not talking about this. it is time to do and not time to talk. >> we will watch for that one. you are telling me that you are focusing on the u.s. market. the marketsugh what look like and where you see the demand. give me a top-down view. >> the u.s. is going strong and is healthy with a lot of orders and it is getting good response. the second largest market is ofna and there is a slowdown the increase of the super sports car market. it is still increasing. then, the u.k. and middle east. markets, like germany and japan.

they are on the same level and, for germany, we see it as good. >> russia? what's it is a small market. bricks,talk about the russia istiming and small and india is increasing of that. >> ok. volatility in the emerging markets. you can manage that. >> what we are doing in lamborghini and is trying to sell a balance in the major regions of the world and this is what we are achieving in 2013 and we are planning to do the same. this means one third in america, one third in the middle east,

and the asia-pacific. and youlk about the suv are a little boy on a lonely's. still the same picture? >> there is no suv. working hard when i saw them. when you wrap that up? >> the third model? it is what we are seeing and we havefive cars a day and we the entire year to be focused on this. will be full speed in the last quarter. >> ok. are notthings up, you producing it and i have to know the daily basis with cologne and

what do i read into the fact that you are doing this? the core business is developing and producing our beautiful cars and we have a brand extension, it does not dilute our value. it is a clothing collection and the first year was the last idea. it is a nice perfume and they gave it to me as a gift. it is very good and i think it is a product that will do well. >> it is a pleasure. thank you for speaking with us. the ceo of lamborghini. from geneva 2014, back to you. >> doing now? ?

-- do we know? >> i'll ask that question and get back to you. i will get an answer. it is just for men. once we have the answer on live tv. the power of live television. in crisis and we continue to monitor developments. we are live with the ukraine's investor to the u.k.

>> let's return to the situation in the ukraine. totern leaders are trying keep or. happening. we are joined with the details. what is the latest? >> we expect an address from vladimir putin and when that begins, that is the biggest news of the day. he is making it from his residence in moscow. it is a tense standoff at an airbase and you have an airbase that was taken over by russian troops over the weekend and a unarmed servicemen one at that and they stop with russian forces.

one dozen armed men, not necessarily russian troops. they could be a russian speaking tried to get them away. it is the first shots that i know of that have been shot or have gone off since the conflict began and they were not in the direction of the troops. the situation is that you have two groups of troops on the and guarding entrances. it gives you a sense of how tense and on a razor's edge things are in crimea. >> what is the risk of war breaking out? the markets seem calm her. but the feeling is that crimea has effectively been taken by ukraineian forces and

says that russia has 16,000 troops that are trying to take control of the few remaining bases that they do not already have. there are a couple of ships and an airbase. they have consolidated the basic power and there could be an a standoff at an airbase that gets heated and someone starts shooting. the real thing that we are all looking for is, is this ending in crimea? the answer to that is something only vladimir putin knows. there is a concern that this goes into the eastern ukraine, where you have more russian speaking ukrainians. that is the reason that the russians gave for going in, to secure the russian speaking population. it is a difficult one to predict and it could change at any

minute. >> what about sanctions? we look at the european union and they are so dependent on gas traveling in the you train. would be given goal for the union to impose economic sanctions on russia? the feeling is that economic sanctions would be difficult and with russia on the edge of a recession in -- it may not be helpful. what is getting some currency is an idea of targeted sanctions senior officials and the bank account outside of russia. russia, thet that united states, the european list have a whole laundry of issues that they are on opposite sides of other than the ukraine.

, you getclear weapons into these big actions like sanctions and agents difficult to engage on other issues. >> the very latest from jeff. as ruled that -- a court as will that bp must adhere. they say they were misinterpreted. bp must resume paying linda dollars and claims that were temporarily withheld. avoiding a lengthy antitrust challenge. the shareholder says that they are paying. samsung is donating millions of bylars to charities picked

ellen degeneres. was retweeted and temporarily shut down twitter and beat the record set by president obama. richard branson. for rare animal species. the details are ahead.

>> richard branson's paradise. speciesr the 300 animal he shelters there. why branson has turned in his residence to a mini-madagascar are. >> they are about to end the half weeks old. but they are friendly. but they are very friendly. >> i am excited to see some lemurs. 300 species have been hunted to ofr extinction or forced out their habitat. the billionaire collects them and make sure they thrive.

are red rust lemurs and there are only 300 or 400 left in the world. >> for branson, saving animals is a passion and a resave. wildlifes a team of experts to care for them. >> they were taken to zones and were not breeding. they have more space here. to six species that are nearly extinct in madagascar. >> they are thriving in this environment. bitt made me a uncomfortable, to say the least. giantnkfully, the galapagos tortoise do not get

excited about meal time. they can live months without food. because hee new 18 is going to live to 200. to cornices and lemurs, it shelters rare birds. >> doing very well. right here. >> i see him right there. it was once native to the area of the caribbean and when he moved here, there was not a single one left. >> because they are beautiful, they may have been killed for the feathers. >> branson has a big plan for them. >> once we have enough, we will move them on and hopefully, they

will have scarlet ibis there. >> i would never leave. >> yeah. yeah. yeah. >> trish regan, bloomberg. >> whether animal or human. thethose listening on radio, the first word is up next. or our viewers, the pulse is back. we'll talk to the chief executive officer. our top story is that the ukraine is in crisis and we talked to the ukraine ambassador to the k -- the u.k. he seestalk about how this evolving. you can follow us on twitter. i know that there has been good stuff on cars and car pictures.

we will see you a couple of minutes.

>> vladimir putin and military exercises in russia and thousands of remain in the you train. tried to stops the standoff. the geneva motor show is live. slump is inevenue the mirror. good morning to our viewers. this is the pulse from

bloomberg's european headquarters. my cohost is at the geneva motor show and we will get to him later this hour. putin and troops in russia. 16,000 troops remain in the crimea peninsula. we are joined by phone with the latest. what is the latest? >> good morning. we have a standoff in crimea at the airbase that was taken over by russian troops over the weekend. this morning, a group of 300 unarmed ukrainian servicemen marched to the base and said they wanted the base that. men were pushed back by were not necessarily russian fired warning shots

into the air. and thato the tension is the first i know of any shots being fired in this conflict. beginning the imf talks today and what can we expect but mark >> great timing, right? the talks begin today and i understand from an individual involved in those discussions that the ukraine will ask and specs money and funding from the imf and we could get an announcement in the next week that would be between 10 and 40 days. the ukraine has asked for 15 billion dollars to replace the 15 billion they will not get russia. but thank you so much.

ryan with the very latest. let's take a look at how the markets are reacting to the ukraine. we are joined with the latest. >> absolutely. to it beingn intense in crimea. the perception is that the end diminishes exercises it to some extent and there are some losses and broader equity markets and we see them pushing higher. it has not erased all of the losses from yesterday and putting financial markets to one side, a lot of people in russia and the economy is still very weak. you have a central bank without the need to hike interest rates and that may have the inflation

side of things and not growth. growth is around one percent and they need to address that. we're worried about investment right now. >> the ability is curtailed by our dependence. exploreds something yesterday and it is important to draw a distinction between targeted sanctions and freezing of the says and trade sanctions. we are talking about echoes of iran. it is easy to put sanctions on exports of oil and crude. the u.s. compensates and it is difficult to do that with. exposure andsive it is difficult to see where the

leverage comes from. perhaps it will come from stockpiles and maybe that gives a little bit of leverage. if theve 45 days of gas supplies are disrupted. struggle toine is a find international coronation with the u.s. and europe. are they on board with that and how hard can they push? latest fromhe very the president of the european council. stay will discuss the situation. prior to the extraordinary meeting, we understand the prime minister will be joining them in brussels.

we are joined by the investor to the u.k.. give me a sense of how you see this developing. there has been a lot of angst in the market. this is the eu giving russia four or five days to calm down. it is tense and difficult. we need all the help that you can get in the first place. we are acting individually and russians.restrain the that secretary kerry is supposed to be in town today to discuss the situation. the point.pursue

>> this will be sanctions and economic sanctions or will it be something less tangible? our markets the ultimate way to punish russia? situation is very heardant and we on the influence that the situation has on russian business and i think that sanctions is on the table havehat type of sanctions to be chosen remains to be seen. >> the sale of 10%.

these are closest. >> that is what is going on and i do not know how the little goal establishment in russia .ill ameliorate this situation it is up to the president and the government of russia to calculate this. badink they'll face real economic consequences. >> heavy spoken to anyone in london? have you been speaking to institutional investors? >> certainly. i am speaking to many people and that includes business and they are worried about what is going on because this is against their interests. still, it is up to the russian

evaluate and i am sure.- i am not this to play an important role. insuranceu had any from investors? funds we do not. that's >> we do not. it is an important development and the british government has pledged assistance to the ukraine. itl, you know, we appreciate that theink

negotiations will be constructive and will open up again for other institutions to, substantial assistance. >> iq so much for your time today. still ahead, we speak to the officer and the third-largest market on the company shares. we will ask him about how renault will. that is coming up next.

>> welcome back to the pulse. we are live from the geneva motor show. let's talk about cars. new one.as unveiled a -- will theyar replicate that? what's talk to the chief reform its officer. that sounds like a good title. this is an iconic french automobile history and you guys have updated and modernized it.

it has delivered for you in the past. us and weconic for launched the first in 1992 and for theed a new model public and customers. the samere launching innovation you would see. debt out certain outstanding -- outstanding. it is new for us and with this car, once again, we are back. has their new car and everybody seems to be doing it at the moment. the european car market is difficult. year.s a turnaround

forward --xpecting for 2014 to be a last year of the crisis. that is what we are experiencing because france is not at the end , under our expectations. we expect the market to be higher, frankly and i consider 2014 forecast for the market to be a growth of one percent-two percent. >> is self-sustaining? you have subsidy packages they keep the market along at this point. >> frankly, the subsidies are there to overcome the situation that was what difficult and we still have some subsidies in

benefitinge are because our products are the ones that the spanish customers so far, thish and is a big them from it from last year and we do not need any more subsidies. i expect the market to be sustainable. ventures in the country that are well noted and you must the watching this as anybody else. are you able to manage the situation? are you reacting to what is going on? >> you cannot manage and everything related to the political aspect is not manageable for us. we are looking carefully at the evolution from the end. it is too early to conclude the drop of the sustainable.

what that means is that it is too early and we have an interest on these markets on our have the major region car manufacturer that we are looking at carefully. it is very much important. >> we are wrapping it up there and that is the chief performance officer at right now. that wraps things up. details right now. jon ferro is standing by. >> i can see you getting around london. mario draghi said this is important first rice -- for price stability.

ecbhis pushes tire and the does nothing on thursday, expect inflation to tebow and you see moves and japanese yen and the swiss franc. it is yesterday and reverse nbc money going to the dollar. isht there, the perception that the escalation has diminished and you see moves in reverse today. elsewhere, the same theme. today, down again. not sensitive right now. they are on the ground and that is the reality. in crimea, there are thousands of troops. >> thank you. that is a look at the market and starts and ends off a little bit. we saw the price of oil go up and down 1.2%.

still to come, we monitor the standoff in the ukraine and the vladimir putin fullback from russia.

>> welcome back. at the hotfor a look shots.

race and officials stripped belgium of the wind. the competition with a black guy. kilograms in,000 the battle of the oranges, the main event. championshipworld is under way and highlights try to push their planes to the edge. at 370 kilometers per hour. while. it is time for the number. tip that aw big a man who delivered pizzas recede.

he thought he was delivering an order to writers and producers at the oscars. host whorprised by the walked him on stage. from collected tips celebrities and that was nice. doing?ou know what i'm professions. >> otherwise, there is no money in that. glenn couric strada released their earnings. what i want to know is how much the ceo made. >> look at this. she wants to get to the cash. dividends andn fiancé percent of the company. he is on our billionaires list. qataris are happy and the

profits are up. the behind the story and entire mining industry is in a state of change. tape, the market is not looking great right now for call and it is expanding production. he has control of 10% of the cold market. an honest and forthright take on the world. projects.ed of mining projects.ed of mining he is scared of mining projects. this is going the other direction and he is building out copper. there is a piece of copper that

he is trying to sell. he said they are going to try to do the best and grow the copper production. they have the assets that do not hit and he is ready to sell. the price is important and if be for the, it could shareholders and a payout to them. control of costs and going a contrary direction. but that is key. many have failed and he has a bold personality. but you summed it up. what they similar to analysts are saying and he is typically taking a contrary view. i like bernstein for a lot of injuries and we have both spoken to him. this is a classic

countercyclical acquisition strategy and if you think about coal in have pockets of stockpiles and china is trying cooal.less cool -- less >> for the moment, he seems right. for the moment. >> is a cliché? time will tell. >> thank you. the very latest on that. theng up, he is the king of boutique hotel industry and he is joining forces with marriott. on, theive at later ceo. not this the latest.

all of that is coming up. menace cranny is on twitter. we are back in two.

>> welcome back to "the pulse." these are the top headlines. predicts a taming of the russian ruble losses. slide this year has been triggered in part by the up evil in the ukraine. heaval in the ukraine.

mostgas prices jumped the concerns1 yesterday on over the ukraine and russia. gazprom will and the ukraine gas discount. >> i was concerned. >> getting a little bit warmer. >> it will be warmer, for sure. this.ld be worried about gas motivate for people in the industry to use less and to save more. a good thing for the ukrainian industry, and for the world. >> concerned you might lose that

discount? including that into our consideration. >> since friday? >> since friday. >> you said, we are not going to get that cheap price anymore. that was ukraine's economy minister. do we have any more details? that theyd appear just lost that discount that he thought he was going to lose. om said thegazpr ukrainians of them $1.5 billion in loans.

the whole thing highlights the issue of the gas war back in 2005 when russia curtailed the gas to ukraine for a short time. it underscores the urgency with which ukraine needs to get this money from the imf. the imf is in town today to begin the discussions. >> thank you so much. newse getting breaking from the russian finance ministry. auctions to sound -- sell russian bonds. tom keene joins us with a preview of "bloomberg surveillance." >> ukraine is very much in focus. blood amid putin starts his news conference -- vladimir putin

starts his news conference in moscow. will have the lead american at the international monetary fund four years. assiste imf can do to and where the imf fits in to the scheme of things if the west confronts russia. we will talk to the global strategist from pimco, the russia.e about ge >> looking forward to that. showing live pictures. president putin has started his news conference. it is live in the moscow region. we will give you headlines from that.

it will be interesting to see what john lipsky has to say. the imf has now arrived in kiev. tom keene with "bloomberg surveillance" and about 25 minutes. tweed. over to you. iconancine, i am with an of the hotel business. he started with the nightclubs in new york and moved onto the boutique hotels. global.aken his brand the marriott hotels. to rollls are going out 100 locations around the world. he has been awarded the lifetime achievement award by the hotel

investment for him. -- forum. congratulations. >> thank you. ,> lifetime achievement award you could not get more establishment than that. do you still feel like an outsider or an insider? does it matter? >> it does matter. i still feel like an outsider and i still use that approach. >> why is it important to feel like an outsider? to tryare always trying new things, think outside the box, go against the grain, do things that have not been done before, rather than getting swept away. said, of the things you can you elaborate? being a social scientist when it comes to hotel? >> to observe everything that is

going on in the world, popular culture-wise, what people are looking at an doing and feeling, the way the are dressing, the music they listen to, what kind of cars they drive. i try to tap into that zeitgeist. i try to create a hotel that is responsive to that and take people across the finish line. >> that zeitgeist -- you described a problem. design on steroids. >> the zeitgeist is not about design it is about an ethos, much more fundamental and basic, something that resonates with people. something that happened in the design world is that people are doing design because they think it is good business, but they have no real vision, no real ethos.

they are just doing something. design is meaningless to people and does not upgrade the experience. >> it is going to be very interesting to see. we are watching what you are doing. unfortunately, we will have to find out about that at another time. thank you so much indeed. i love the idea of the design not being the driver of what the zeitgeist is. i'm sure we will hear more about that in the future. >> thank you for that interview from berlin. we are getting breaking news from the live news conference with president putin of russia. these are the latest headlines. ukraine'sd that yanukovych had agreed to compromise. he is talking about the events over the last 10 days.

-- the know he thinks ukraine government overthrow was unconstitutional, ukraine has suffered a coup, he is trying to defend the former president yanukovych, saying that he did not give legal orders to shoot. from flate latest amir kiev -- vladimir putin. of course everyone in kiev must be glued to their screens to see if they have any glimpse of what putin will do next. for the moment, what we have is backward looking. ,> to a certain extent president putin has more control over the future of ukraine than the ukrainian government at this time. these comments we are getting are quite telling. they give us insight, not just

into what he thinks happened in ukraine, but also what might happen next. when he says that ukraine's yanukovych agreed to compromise on february 21, the context is that he had reached a deal with the opposition that was brokered by poland and other western governments, that would have --n early elections in may sorry, early elections in december. president putin is upset that the idea was never honored. effectively, that same day, yanukovych fled ukraine and the opposition to our -- putin is calling that a coup. they decided they were going to have elections at the end of may instead. putin does not like that. he does not like the west the brokered the deal did not include russia in the process.

it gives you a little bit of a putin iswhy president acting why he is in crimea. he feels that russian interests got a raw deal going back as far as the 21st of february. what we are seeing is a little withf an effort from him, his incursion into crimea, to try to set things right, though it is not at all clear, at least to me, how sending troops into crimea will write the situation that he said when wrong a couple of weeks ago. >> i want to get your thoughts on other things. russian finance ministry has canceled bond options. they are fearful that they will not be responded to very well because of what we saw yesterday. here,vladimir putin is what this that mean in terms of legality of what he is doing in crimea?

we talk about borders being redrawn, frontiers being changed. what are the implications of him saying that ukraine suffered a coup? does it mean anything? offering, the russian government has plenty of money. the bond offering set the benchmark for corporate borrowing, as much as anything else. it is easy to cancel that. in terms of legitimacy of russia's military operation, there is a link. we heard the russian ambassador to the united nations say that it was president yanukovych who was run out of the country in a canoe that i asked him -- coup that asked him to militarily intervene. he is justifying his justification.

president yanukovych is the rightful leader of this country. he had agreed to step down early , he was not going to be reelected anyway, and yet the opposition launched this coup, with the west's +. -- blessing. leaderbeen asked by the who has been ousted to step in and try to bring stability to the situation in ukraine. so there is justification for this military intervention coming right now. it is pretty interesting. >> thank you so much. the very latest and continuing to monitor the press conference on the outskirts of moscow from russian president vladimir putin. condemning what happened in ukraine, saying it was a coup. we will return to the geneva motor show to speak to the ceo of opel.

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>> welcome back to "the pulse." welcome back to the geneva motor show. opel says it is back. let's find out what it is doing and what its plans are. karl-thomas neumann is the ceo

of opel. europe,gm of effectively. you say you are back. you maintained market share, you delivered. what we deliver in 2014? -- will you deliver in 2014? >> it was important to not lose market share in 2013. we expect growth in this year. we expect that opel is able to win market share with new products we are showing. 26 new products and 13 new engines. we are showing new engines. 1%, most people say 2%

growth. 2%i think it could be in the , maybe even a little bit more, 2% plus range. beenf the things that has lately is u.k. market the tax breaks. is that something you can replicate on the continent? we have this branch of financial services now. we will increase the penetration of financing. it is giving additional business opportunities and increases customer retention. >> why will i buy one of your cars this year? simply because you're financing is better or because i like the product? talk me through the selling points that gm is going to be delivering to put itself back on the map. >> we believe that the product

and the brand are key. the product is really improved now. we have great products. the brand is also great. opel got a bit too pale in the past. we have a new campaign now. the german and approachable bit of the brand. on the technology side, we have really given products the new engines. >> you have a lot of ties with russia. can you plan for what is going on right now? do you have contingencies in place? >> it is obviously difficult to plan in such an environment and in emerging countries in general. russia is a very important market for us. it is the third biggest market for the opel brand in europe. we think it will be the largest scale market in 2020. too not have any reason change this perception. our intention is to invest further into russia. >> thank you very much for your

time. the ceo of opel, gm here in europe, wrapping up there, talking about russia being a very important market moving forward. back to you. >> let's go back to russia. this is where vladimir putin is talking to journalists. he has said there is no need to send troops to ukraine yet. yet is the key word. he is also saying that the legitimate president is yanukovych. let's head back to ryan in kiev. this is what the prime minister of the ukraine is listening to right now, is what vladimir putin has to say. he is saying we are not sending troops yet. .his is a quantifier, qualifier it is a possibility. >> i am in kiev and i am watching this press conference

from president putin live on ukrainian television. the us is at the forefront of everyone's minds. is big one, the big headline no need to send troops to ukraine yet. ukraine would not understand thatbecause they believe russia has 16,000 troops here in crimea. means that they have the right to have 25,000 troops near their base. they have not sent additional troops, is what president putin seems to be saying. he is also saying that they would not send troops to ukraine , except for in an extreme case. he does not feel that we have gotten to that extreme case yet. the second part is that he is talking about how yanukovych is the legitimate president of ukraine.

fleddent yanukovych ukraine last week, gave a press conference in russia, and the big question was, does president putin recognize your legitimacy? today we learn that indeed he does. yanukovych requested that president putin intervene militarily in ukraine, that is what the russians are saying, that is what they said in the united nations yesterday. they have been asked by the legitimate president of ukraine to intervene with their troops in that country. he is saying, i am not going to take it any further just yet and what i'm doing is legitimate. >> he is just trying to legitimize all of the actions so far. i know it is very difficult to read. it is vladimir putin and what he wants to do. this is why it makes it so

difficult to understand the next move. do you feel that he is belligerent? >> no, not necessarily. this is actually kind of quite familiar behavior from him. this presssms during conference. it is difficult to predict how this will develop and what he wants. all we can do is look at history and experience. when we look at the former soviet union and what we have in crimea -- crimea is becoming a state-let. these exist in other former soviet republics, in moldova, georgia. maybe we are hearing that president putin is happy with having this foothold in ukraine. he is going to send the troops into eastern ukraine -- that would alarm everyone. it might be that that is the

plan for now, to keep russian troops in crimea and see where it goes, to have this foothold. he is not saying that he is not going to send them to eastern ukraine, he is not saying he is going to send them home. de facto, we are in this sort of stasis now. >> i am surprised by this latest headline. he is saying that the markets reacted nervously. reacted nervously due policy. >> is he referring to president obama's speech late on friday? the hard-line that the u.s. administration has taken on this? it was very strong rhetoric coming out of the white house. it is difficult to know exactly what he means in terms of this.

perhaps he is speaking about the russian stock, the russian markets, which were the worst hit in the world. part of that was because you had the likes of secretary kerry saying stuff like, we may have trade sanctions against russia, kind of blacklisting russia as a place to invest. >> thank you so much. ryan monitoring the situation on the ground in kiev. we will keep you updated on the press conference. the two main headlines, vladimir putin saying there is no need to send troops to ukraine yet. he is also saying that former president yanukovych is the legitimate president of ukraine. in terms of market reaction, we have seen a couple of movements. dax, it isll up the

pushing higher on the back of this message from vladimir putin. he does not see this government in the ukraine right now as fully legitimate. when we talk about escalation risk, you do get a sense that it seems to be diminishing. he is talking about extreme cases that we are not yet at. the market is seeing a bit of a rebound from yesterday. >> it is interesting because likely -- he is legitimizing what he has done so far. >> that is where the debate will ndgin with ae you -- the eu a russia itself. european union ministers going to do about this? do,s a difficult thing to to put sanctions on russia right now. the prime minister of the

ukraine is showing up. that is it for "the pulse." "bloomberg surveillance" is up next. follow us on twitter. ♪

>> this is "bloomberg surveillance." military ends exercises even as warning shots are fired in crimea. president putin speaks on the crisis. ukrainian stocks advance.

starbucks invades mcmuffin territory. vital news. good morning, everyone. this is "bloomberg surveillance ." i am tom keene. joining me, scarlet fu. west," torrymberg johnson. it is time for our morning brief. >> a handful of things we are keeping our eye on. 15 years of deflation ending in japan. salaries increased for the first time in almost two years. economic front, no big economic data expected this morning. all eyes will be on the ukraine. >> we have earnings as well, though we? >>