>> talks on russia and the eu leader tells him to pull back. mario draghi has his latest data. a bidding war for 10 billion euros with vivendi. a rival proposal. welcome to the polls from bloomberg's european .eadquarters

guy johnson is off today. link and you miss it. the global launch of the car you can control with your cell phone. first, leaders are arriving at an emergency summit in russell's and they are looking at repercussions for actions in the ukraine. andeditor is also there isolating russia put him to freeze pressure on the eu to make a move. >> when they make a connection like that, that would. pressure onrease countries to make some sort of reaction that is going to be a cohesive reaction amongst all 28 members of the european union

and i think it is interesting to listen to what the secretary general nato actually said about the reasons why they have decided to go ahead. >> the situation in the ukraine presents serious implications for security and stability of the euro atlantic area and russia violates the ukraine sovereignty and territorial integrity and their own international commitments. so, nato decided today to take a .umber of immediate steps >> there are two things that they are doing. they're going to kick them out syriake a u.s. warship to that is going to help diffuse the chemical weapons in syria and the second thing is also important. there will be no relations between nato members, civilian , and russia.

they will keep the lines of communications open to the investors and the reaction from russia has been that this is not hurtful, if you want to keep open the lines of dialogue. that is what they have decided to do, to go ahead with that and that will weigh on the talks here that are getting underway in brussels between the european leaders. >> there seems to be no coordinated action. the eu?ut what is in will they agree on the course of action together? >> you have to come up with a cohesive message and whatever happens at the end of this meeting is going to send a message to for vladimir putin. there are differences of opinion within the union and i'm thinking of the polish and baltic states. they would like to see a strong message and action by vladimir

putin in crimea. they would like to see some sort to escalations. maybe a timetable for de-escalation. itt is one way of looking at on the other side, we have economic interests and the view is being led by germany with the support of a tie-ins and their concerns over the economic consequences of putting sanctions in place. we hear that russia is artie talking about freezing the assets of european countries. could go on a lot longer than we anticipated. >> thank you so much. our europe editor is david tweed and he is on the ground, covering this all day. we'll get news as the leaders

arrive through that door in brussels. the situation remains tense. ryan chilcote has the latest from the ukraine and what can you tell us? here isnk the concern that the people in brussels will not do anything at all and the situation on the ground is heating up in crimea. envoy was chased out of town he wasay and left after at a ukrainian military installation. -- armed gunmen said he needed to go. the forces that are there are outside intervention and mediation. all military installations in -- ea remain

>> the servicemen can leave but cannot go back and and we have a standoff continuing on the peninsula. mood.s is the what is it else where? >> in the west of the country, have theet and places demonstrations yesterday and a pro-russian and pro-ukrainian demonstrators clashed until the police intervened and took some of them off. a group of pro-russian demonstrators seized a government building and they did leave in the evening. flag may be flying above the building. we have a local resident of the city declaring himself the

governor of the area and he is pro-russian. they have to keep this country together and it is interesting to see if they get the financial aid they need. they will get russian forces to pull back. but thank you for the latest from the ukraine and we will get the ecb decision later. mario draghi said that the last meeting had more data before further stimulus. is he missing the risk of deflation. we are joined with the latest. deflation is what we're worried about. month, mario draghi said that the euro zone is not japan. at present, there is no reason to expect that prices will drop

sharply and place pressure on the entire economy. that quote is from the bank of 1998 andthly report in then what followed was a decade of deflation and the problem with central bankers in europe is that deflation is a self-fulfilling prophecy and if you see it, you sound the alarm and it can accelerate the process. that you arey going to go out and spend this weekend. >> a little bit more careful. what are the options today? >> one option is absolutely nothing and the data has not -- you seefor inflation coming in above expectation and many people think there'll be no rate cut and the ecb will sit on their hands. 2016 forecast for inflation and mario draghi is there. inflation can be a bit of an issue going forward.

will they act on the liquidity side of things? this could be where it gets interesting. the heavy data available and the crisis was for italy and spain and the securities market program. they actually sterilize bond purchases to appease the bundesbank. out and maintain deposits at 175 billion euros and that is the equivalent of the bonds that are on their balance sheet. in other words, it is neutral to the money supply. has given the nod to suspend the process. if they do that today, they could add liquidity. the problem is here and the question will be asked if it is not qe and reverse. >> thank you so much. remains to be seen.

we have a guest host and he is eric nelson, the chief economist at unicredit. and woulde ukraine have the ecb and the bank of england. is this something that the ecb would look at? you could say that they are worried about the outcome and that they are not going to spend the money. >> i would think it is the other way around and the ukraine disturbs markets and the uncertainty has increased. up andk factor has gone the whole thing is a little bit tighter than it should be. the ecb is not spending money on the ukraine and is spending money on the european economy. >> finally consumer and a suet is happening and i get a little bit more concerned about my outlook, do they have to take

more action? >> i think that is exactly right and that is exactly the point. it is for consumers and businesses, right? are you exporting in that region? are you investing in a machine that will increase production? now, your holding back a little bit and it has a deafening effect. equal,ing else being this damage is europe a little bit. if it is transitory, they should not react to it. >> it is something to look at more. thank you so much. that was the first comment. we will get acted him shortly. to the company's story and the center of a bidding war. caroline hyde joins us with the very latest and this offer basically rivals the other. >> they are desperate to get out of telecoms and france and there are two hungry buyers.

you have telecoms and cost savings and competitions. today and itetails is 14.5 billion euros that is how much the value of the offer is. a 46% stake in the combined unit. so, a lot of money there and they're saying that when you factor in the cost savings, it will be 19 billion euros in the telecomainst offer, that is for 14.5 billion euros. there is similar immediate value and speculative stories scrutiny. a --le company buying company leaves you players in france.

one, there are three players. many are saying that it would not and they need consolidation in the market because the prices have been tough and competition has been so fierce that we need to see the consolidation. the european regulators are going to look at the purchasing sfr very closely and they have to say they want a bit more certainty, bit more in terms of less regulatory scrutiny coming from the offer and it is a difficult one to do and you can see how many are going in today. back to you. >> caroline hyde is here with the latest and here is what else is on the radar today. a mobile unit in the near-term because the regulatory hurdles and they are

thatto alternatives and remains the preferred option. george telecom cut their cash flow. minister tookime israel.to talk about he spoke with bloomberg tv. to get all the venture capitalists and investors to come to israel and seeing how entrepreneurs and technologies to corporate with them. >> henry kissinger is criticizing the russian resident and his actions in the ukraine. he spoke to charlie rose. they are no longer in a position to threaten all of

their neighboring countries. conducting an apology in which use assertive and defensive at the same time. >> you can watch the interview on charlie rose on bloomberg. up next, we will continue the conversation about the ukraine. market research said they reacted nervously to the conflict and we will discuss that with the mobile economist next.

>> gathering for a meeting on the ukraine as we speak. speaking to the chief global economist. thank you for sticking around and we mention the ukraine and you said that you are concerned and you do not know. nobody knows how long this will take to be resolved and how it will be. to not be it overblown. >> at the end of the day, it is a probability game and it is like anything else. it's a figure out what is going to happen and it is overwhelmingly likely that russia will be politically isolated for a while. maybe they get kicked out of the g-8. it will be restricted to that

measure and not economic measures, as we talked about before. european growth is down and the reason is that no one has the interest and nobody has it. >> we each have part of each other's back. russia can always pull the banks for the loans that they have with russia and it hurts us. not the right time to invest in the russian economy. >> no. i would not. >> at all. we do not know who's is in charge. >> i think that is right. from an investor's point of view, i would not invest in the country right now because at the end of the day, it is certain that the russian economy will go down to a standstill and growth in the capital increases and

there is a lot of uncertainty in that sense. my point is that if you look at the european region and western europe, i think it is a low probability that you get measures between the two that will damage your growth and it is extremely unlikely that they will go so far and this applies that would be disastrous. >> talk about your take on what happened today and having nothing at all. inflation is not as bad it could be and we are more and a wait and see situation. >> is a tough call and i think it will do something. if not today, next month. i think it will do something else and i think they will do it theffer to buy stuff off of sheet to expand their balance sheet and if you have not seen it, you should look at the

explanation and it is not a deflation risk. low inflation is damaging for the country who is suffering the fragmentation and for the .uropean departments yesterday i very much agree with that. sooner, the better. thanbetter time to do that when they did not bring inflation back to the target. say thatit this way, they were in the same distance. have a discussion. >> they would do it. >> of course they should. they have extraordinary missions and why notu lose

somethingy because bad happens and you do not have the tools to counter it. but investors argued is and i do not agree with this. the point is that if you have a finite number of tools, waiting means you have to do more and a finite amount of tools becomes an issue. i don't think the central bank has a finite number of tools. they do not like to go there and they should go earlier. >> a good point. thank you so much. this is what is coming up on the program. technology and the global launch of the car that you can control with your cell phone.

>> welcome back to the polls. we're sharing on your tablet and phone. is at theerro

touchscreen. >> let's check out market. they are pushing ahead of it is 6/10 onand the cac 40. the bank of england has no change expected. interesting in the second half of this year when we see the debate about rate hikes. that is when that it's interesting and the ecb it's interesting right now. the data is not ugly and not terrific. the ecb may sit on its hands on the right side of things. we have a program and look out for that. it is pretty volatile in today's engine that session.

a quick going to take break and i want to say that david cameron has arrived in brussels and he is speaking to reporters on the ground. we heard from the minister who says that he does not expect that.

>> welcome back. i am in london and guy johnson is off today. european leaders are gathering meeting on the crisis in the ukraine. oneeting comes today after point 6 billion euros in numbers and ca was offered to the government. the prime minister spoke earlier. >> this is not just the

ukrainian crisis. europe andrisis in we are understanding that this is a joint responsibility. officials england said that foreign exchange market manipulation concerns are more than seven years report regulators are open. meetings have been released from traders with some of the biggest bank. the latest policy decisions later today. and marioate decision draghi said that he needed more data. there have been stronger than andcted inflation reports there is no change in the benchmark rates. >> it is time for a bloomberg exclusive and standard bank beat

estimates. the bank is confident in its and wening across africa are joined from johannesburg. thank you for joining us and give us a sense of where you see the bank. are we going to see more turmoil in the next couple of months to put investors at ease? >> we are positioned across we've seen aad fair amount of volatility from 2013 and some of our markets. i think some of the early capital flows have already happened. >> i guess there is a worry in a

region that is the fastest-growing region. .arkets freak out and so all you make sure that your counterparts have it in order. right and basic economic fundamentals prevail and clearly the emerging markets are fragile. there will be capital withdrawals and think all of us have to be vigilant. ceos? is it having joint this is been one year and working. have worked well and we look at a and we felt like it worked very well. >> what is your biggest concern for the bank? navigating economies?

and africa hass won the large economies. we see lower growth in south africa and higher growth in some of these other academies. they are focused on the year ahead. affect the that business? we think that if we have a , the of 150 basis points cost will be banal. consumers, they can be more troublesome. >> what is the country where you

see the concern? i want to get the flavor about how you see this that playing out. >> the markets are connected and you cannot escape that. situation, these particular markets. the connected markets are international markets and we obviously remain quite focused portfolio. a larger some of the african markets and the inventory of the portfolio investments and the rest of the economies are. >> i guess your businesses are affected.

i think we are having technical difficulties and we will get back to him. let's continue the conversation on the emerging markets and eric is with us. we talked a little bit about the central bank and you say you expect something today and not an administrative decrees. you have tools to deal with whatever comes and emerging markets are tricky. we do not know what we are facing and how do you look at them from the economist point of view? investor, thean key is that we have to think about the 7-8 years before the in the world emerging markets where everything looks good and they take over the world.

a place where they are getting used to. companies you see that they have problems adjusting to the new reality. a century of great emerging markets is doing well in europe and poland is a well-balanced economy. differentiate and a word of normalization of good balance sheets that are the premium. you have a balanced account that is t for south africa and the

import is if you have to capital, you are dependent on the mood of the market and if you allow them to have the funding from the private sector, it is more stable. >> we are doing around the world and i want to have your take on the bank of england. they are in the envious position and they have to contend with productivity that is not going anywhere and a high pound. >> this is exactly right and they have a tricky situation. it is a luxury problem and the only issue is that the central bank came in for a while and keeps monetary policy accommodative for a long length of time and forecast show that the output gap is no more than 1.5%.

there is no real prospect of having the potential output decreasing because it is too low and if you look at the bank of england numbers, you must think when that there will raise rates before the end of the year. we will see whether the economy suddenly slows or if they have prepare. >> you expect them before the end of the year. >> we do. they started at 25 and it will go gradually. that is the other side. -- bank.tral brain that to tell you that it is coming and you'll never have a central bank said that they will wait for a while and when they star, my god are we starting. that is not the way you do it and it was self-evident. it's it is like communication.

what do you make of yesterday? we have the first possible bond default and is is a small company and it seems to be encouraged by the chinese government and us a little bit like a flag. we're are taking care of the credit crunch problem and there is something in that. >> that is right. that is exactly right and that is something that we have to be talking about going forward because there is a big bubble and we know that the lending volumes are high in the market and we're are close to 200% gdp. they're trying to deflate the bubble gradually and that is almost impossible. i have never seen it. i have never seen a mobile the size. maybe the chinese can do it. now, they try and they were worried by half-billion of if they go below

interest rates and exchange rates to get a feed from the external side, i think the chinese are doing the best and i don't think we will have a crisis leader -- this year. i think this will be real interesting. >> you are pretty optimistic. is this the big unknown that is so big thing goes wrong that they could really stop the world ? >> yes. i think that is right and i'm -- idence that nothing have confidence that nothing is going to happen. if you tell me that there is a crisis, there has been a political crisis that holds the levels and i do not think that is likely. if you look five years out, you have to shift 20 percentage points and we have never seen that before and we have a

turning point with capital. time, the have three or four percent growth and that is a big adjustment. >> thank you for all of the. the chief global economist stays blink andd up next, you will miss it.

>> this matters because we benefit from a world where people follow the rules and people in the ukraine choose their own future. >> that was the prime minister arriving in brussels where the european leaders are meeting for a gathering on the crisis on the ukraine. we are on the ground and we will bring you anything that comes from that meeting. let us shift here's. rifle to anything made by -- folks like an -- volkswagen.

we check it out at the show. usthis car is exciting for and it is the first car in the world with power. track, no car can go faster the same time. >> the problem is to find a a -- and you are facing you go the other direction. there are not enough places to do that. if somebody else is faster, they are over 400 and 40 kilometers an hour. we are certain of the as/400 40 kilometers an hour. we are certain of that.

-- forwarded 40 kilometers an hour. >> the most viable soccer team is on sale and here to tell us more about the team and the buyers is jonathan ferro. are you sad? >> no. disclaimer you the and the small plant -- print is that they are sending marketing documents to buyers and a said that the team is not for sale. the club is one of the loves of my life and say would you will about silvio berlusconi, as a club president, he has been so successful and this is a club in decline that needs investment. >> do we know about potential buyers? beat sign football used to

all italians until recently when roma was sold. from asia could come and this club needs big investment. the club needs cash and they do not own a stadium so they need to generate revenue. they need money injected him and whoever buys it will be filthy rich. >> all right. thank you. working on the development of tires. smaller amounts of fossil fuels and we speak with the ceo and latestirman about the acquisitions in the drive for more sustainable manufacturing.

>> welcome back and we are getting pictures of the president walking off ban the the topic of the day is ukraine talks. russia says the move was unacceptable and should have consequences. there'll not be any sanctions on russia today in brussels.

he has spent the last several years making production greener and more efficient and they are using synthetic materials. they have announced acquisitions and expenditures and rubber. here's to tell me more is elmer. thank you for joining us on the program and talk to us about the new expenditures with the rubber -related businesses. is this because you thought they were underinvested? thought that the intention to recycle material is true for rubber and electronics. we found the methodology two separate steel from rubber and other material and it is not easy to do it economically. we will definitely increase the new amount of the recycled rubber for new tires and help the environment. concernis the biggest

for the next years? there seems to be a push to gain more independence from the auto industry and we're seeing the early signs of carmakers coming back in europe. hope that the signals we are getting from europe will get stronger and that european markets will recover. year, we were at the level that we were 10-15 years ago. in northppreciate it america. on the is your take percentage of tire production that we want. we are putting a lot of money on tire production and you have a figure in mind? what is that figure?

i can give you the production rate of last year. andly 125 million last year this was an increase over 2012 and our target is to grow production towards the level of 150 million in the next 5-6 years. >> what kind of vehicle? money to upgrade the spending on the tire division. are the standard vehicle tires? is it that they once used in the mining industry? >> we are targeting premium tires and passenger cars. inare also investing specialty tires. you are right that this is an opportunity for companies and we have this area.

and we over companies invested heavily in brazil and in china. all emerging markets now. >> thank you so much. mental --an of cut to continental. let's get some final thoughts from him. eric, we discussed everything around the world and what is the thing you are concerned about? there is the ukraine and central banks. is there something that the market should be looking at specifically? >> the conflict in the ukraine. difficult to see where it goes and if you see the russians threaten the territory actions that is aopeans do, concern and if the europeans shifted closer to the volcker -- , that is a concern

for markets and it would be good news if the germans and italians are a bit more cautious. they are sounding more hawkish than they did and i expect that the famous picture of the official.-- office and have to be more careful i think that is good news. >> all right. of course, we keep having leaders walking through the door in brussels and we will see if they come up with sanctions or an agreement for coordinated action. thank you so much. for those listing on bloomberg adio -- the second hour of the pulses coming up and we're talking about the ukraine crisis and

will go live to our european editor. the european council on foreign relations and we will talk about wine and selling it.

>> battlefield brussels. emergency talks on ukraine and russia. chasing growth. the ecb chief delivers the latest rate decision. a bidding war. euros for the french phone unit. good morning to our viewers in

europe, good evening to those in asia, good morning to those waking up in the united states. guy johnson is off today. we begin with the emergency meeting among european union leaders in brussels. so many different interests on the table today. it might be difficult for leaders to come up with a single resolution. >> you are absolutely right. there are different views from different groups. one group is the eastern european group, led by the poles. they want to see a cost imposed on russia. you have other views, like germany, and they're worried about the potential for further retaliation if sanctions are imposed on russia. at the same time, you have a pretty good understanding of exactly what russia needs to do

in order to alleviate the situation. it was outlined by the new ukrainian president, just speaking on the way into the meeting right now. we ask russia to respond, whether they are ready to preserve peace and stability in europe or they are ready to instigate another provocation and tension in our bilateral and multilateral relations. thet is a question of how european union, how are they going to respond to that. i thought the david cameron's comments going into the meeting were interesting. he said we have to send a clear message to russia that what has happened is unacceptable and should have consequences. were further action to be taken, that would be even more unacceptable and require more consequences.

will the european union say, if we see an escalation of the action in the ukraine from russia, then we will put into place sanctions? or if we do not see a de-escalation, then will we put in place actions -- sanctions? will the be a timetable on sanctions? that is the question we will look at. >> russia refuses to would knowledge the new government in the ukraine. what are the european union leaders doing to support that? having the ukraine president here is a very supportive diplomatic stance. also, the european union will be talking about really cash aid. it will be decided by the council today. it is conditional on an agreement with ukraine, with the imf. once that agreement is in place, there is a potential that these loans could grow to as much as

11 billion euros over seven years. the european union is putting its money on the table. will it be enough? it does not look like ukraine is facing an immediate default. >> thank you so much. covering the european union leaders summit. we saw david cameron, the french president, others walking into the meeting. the situation remains tense on the ground in ukraine. the latest from kiev. we are just getting a couple of technical difficulties there from our reporter on the ground. we will get back to him shortly. certainly, a lot of focus here in europe. we cannot forget what is happening on the ground, a lot of tension and a lot of worry in kiev. let's turn to the other big

focus of the day, the policy dishes and -- decisions from the bank of england and the european central bank. a lot more focus on the ecb. are we actually expecting them to do anything? mario draghi said he wanted more data. now he has it. >> it has not been great, but not terrifically awful either. greek unemployment even comes in better. 27.5%. record lows since unification in germany. what does he do? his answer to the disinflation is that the eurozone is not japan, but there are similarities. the european editor here at bloomberg news did a great piece about it. strong currency, the euro bank compared to then yen,

of japan 1998 is being compared to ecb 2014. we do have to risk inflation here in the eurozone. forecasts out to 2016 are going to be key. you have a 2% target. what are you going to do about it? happen todayhas to or next month. -- if was trying to ask he does not think it is the interest rates, but they have other tools at their disposal. on there north of 2.5% interest rates. where do you take it? you could take the deposit rate negative. there are unintended consequences there too. is tosiest side of things

do something on the liquidity side of things. maybe that is an option mario draghi takes today. the pressure is on him to do more. the economy is struggling. going to the ukraine side of things, ukraine and isolation is a big deal. >> on the ukraine, i want to alert viewers that angela merkel is speaking to reporters right now. that the ecbhing will have to watch. >> isolation is a big deal. this has always been about spillover. the eurozone recovery is in baby steps. this is not hard in the recovery. the last thing this region needs is a big energy crisis. they will be watching it. >> angela merkel still speaking to reporters in brussels. we have the italian prime minister -- he walked in the door without making comments.

david cameron did make a couple of comments earlier. he seemed a little bit more hawkish than before. he said russia possible moves were unacceptable and they must have consequences. the french were saying they do not expect sanctions today. one of our top corporate stories. two bids for the french phone unit. they had been planning to spin off sfr. caroline hyde is following the story for us. >> the two players pitted against each other are telecoms and a cable giant. let's have a look. the deal on the table is an offer valued at 14.5 billion ,ould you factor in cost cuts

is actually worth 19 billion euros. getting 10ld be million -- billion euros in cash and the 46% stake in the entity. if this deal goes through, for telecom giants and france would become free. you were removing some competition. .hat will bring a lot ofside ofe lookingionaire owner is to offer about 14.5 billion euros as well for sfr. there is moren competition. you would still have four telecoms giants and france. this would be a cable company buying a telecom company. he wants to offer internet and mobile services and potentially television.

this is a question for vivendi. and morent more upside regulatory scrutiny or a bit more certainty? there will be a tussle on and it will get heated, i'm sure. >> nothing like a fight to get control of sfr. thank you very much. here is what else is on our radar. ceo ise telekom's viewing the sale of its mobile .nit is less likely it is open to alternatives. its 2015telekom cut cash flow for cost on higher u.s. banking. the company is experimenting with robots to replace repetitive behavior on the line -- said the google chairman. he compared the search giant to apple. >> apple is a well-run company.

whatever issues they are facing, they will solve. i was on the board for a long time. they are a good company. isgoogle, the motto brilliant founders. you have a commitment to excellence and you do not accept products that are me too. henry kissinger is criticizing president putin. he is no longer in a position. is conducting a policy in which she is both assertive and defensive at the same time. >> you can watch the full interview on "charlie rose" right here on bloomberg tv. we were returned to brussels.

eu leaders gather for an emergency meeting over ukraine. ♪

>> welcome back. let's check in on the currency markets. trade for you. euro-dollar. dead flat on the day, but this

one could get exciting around 12:45 u.k. time. it is ecb decision day. the deposit rate could go negative, but no one thinks they will move because of one thing -- inflation came in little bit higher last month. it is still way below that 2% target of the ecb. if they do see inflation below the target rate two years out, people will be questioning the credibility of that bank. mario draghi knows that low inflation is a threat as well. that could be a threat to the economic recovery. we are trading flat into that one. a big day. manus cranny is all over that one. >> he certainly is. are meeting in brussels this hour for an emergency seminar on russia.

david tweed is standing by with the latest. >> thank you very much. just about to get underway. people are starting to arrive. i want to discuss what you see as a potential outcome to the meeting. what would be a satisfactory outcome? isthe key thing for the eu to come up with a plausible, coherent, mid to long-term strategy to reassure the citizens of the ukraine that europe will be a strong partner in a difficult situation. economic help. that has already been signaled in a massive aid package. targeted sanctions against russia, yes. i think there is a further important point. not to lose sight, despite all of the understandable anger at

the way putin has handled the situation, that it is vital to keep communication with moscow that there are legitimate and essential russian interest in ukraine. >> what are those interests? the newistake is that ukrainian parliament announced that russian would be demoted from the second national language. anxious,ussia rather even though they did not go through with that. parts of ukraine have historically been what was considered russia for what one could say is 1000 years. even if there is consensus to keep the borders intact, they

are a fairly recent creation. the crimea is another territory which was russian for hundreds of years. it is an important part of their cultural and historic space. that is to say that whatever the eu and the west devices as a strategy must be done bearing in mind russia's interests in ukraine are not just a post in. oh arrogance. >> there are russian interests in the ukraine. what can be done in terms of returning the situation to what it was prior to last week? >> we will have to see how to handle ukraine and the western parts of russia will handle it. we have to work toward the situation where a secession of

crimea is avoided. >> it has just been announced that crimea has announced that it will have a referendum on march 16, a referendum to decide to stay within the ukraine or to secede to russia. how does that play into the whole discussion? >> that complicates things immensely. one can question the legitimacy of such a referendum and how it will be held. there are were military interests here at stake to. there is the issue of the russian black sea fleet. there are many complicating factors. again, the anger about russia, should notoint which construct a future of -- thatagainst russia would lead to failure long-term. bemany, many issues need to

considered by the european leaders at this meeting here. it will be an ongoing story. back to you. davidnk you so much, tweed there and his guest. up next, israel's prime minister talks tech. bloomberg said down with benjamin netanyahu and asked him what he would like to see in his own version of silicon valley. ♪

>> welcome back to "the pulse."

live on bloomberg tv and streaming on your ipad and bloomberg.com. the israeli prime minister took a break for a subject he much prefers, israel as a tech hub. he seemed to talk more about what israel can do for california rather than vice versa. >> that was certainly part of the discussion. he is not afraid of crowing about israel's technological achievements. his when he was asked about visit with tim cook, he said he learned that apple was in israel for a very good reason. the prime minister says that he wants more.

get all oflike to the venture capitalists, investors him and technologists to come to israel and see how they can find soulmates, but actually entrepreneurs and technologists to cooperate with them. you do not insulate yourself and you do not closed -- cloister yourself up in this world and preferably you open yourself up to the smartest brains you can find anywhere on the planet. that's what we think we have in israel and their other places like that. california and israel are two of the greatest tubs of technology and entrepreneurship. >> we have seen a lot of little companies get acquired before they ever get to any size. is that good or bad? when you imagine her economic goals? -- your economic goals? fine.ll googles would be

that requires marketing reach. you have green people who develop startups. it used to be that if they sell a $100 million, they were wildly successful. soon they were so if you billion dollars. sell at if you billion dollars -- a few billion dollars. it seems to be our lot to keep producing these mushrooms after the rain. somebody else picks the mushrooms. that is ok. we might develop a marketing reach eventually of big companies. it has happened in one or two similar companies. overall, israel is the laboratory of the world, the laboratory of innovation. >> some suggestion that netanyahu may have invited tim

cook to pop over to israel to check out the exhibition they made late last year. we also had news yesterday of israel intercepting a ship at sea, which is reportedly carrying missiles from iran to gaza. >> really interesting story. the israeli navy intercepted this ship off the coast of saddam -- sudan. they were going to inland versus to gaza. overland the ship was captured just in time, according to the twitter post. faileding coincidence or lies? iran is denying that it was involved in this. >> they give so much.

up next, from fashion to high-tech. now you can get a sweet deal on wine. you can follow all of us on twitter. ♪

>> welcome back to "the pulse." bloomberg's european headquarters in london. here are the top headlines. european union leaders gather for an emergency meeting in brussels beginning this hour. they will consider repercussions for russia the day after the eu issued in -- offered an aid package to ukraine. >> this matters to people in fromin because we benefit

a world where people obey the rules. we benefit from people being able to choose their own future. >> the european central bank announces its latest rate decision today. mario draghi said he needed more data to make any decision. we have seen stronger-than-expected output and inflation reports. most economists predict no change to the benchmark rate. officials knew of foreign exchange rating concerns in 2006. they released the minutes of the meeting with traders from some of the world's biggest banks where they discussed the concerns. the bank of england announces its latest policy decision later today. is a frenchrivee

company that premiered the model of online flash sales. it is adding another category, wine. .ere is the cofounder thank you so much for joining us. give me a sense of exactly what vente-privee wants to become. you started with a little bit of luxury, flash sales. product.uy this 24 hours before. then i have a short window to buy the products. why wine? you never plan to buy something. vente-privee is based on impulsive buying. you think about wine. you do not think about buying wine. you can have a fantastic wine in front of you, tasted by great wine taster's, with a big discount, roughly 40% as an

average -- you jump on it come you receive it at home by mail. >> it is heavy. it is the extra of delivery hassle taken care of. give me a sense, when you look at different countries, where do you expect us to do better? it will probably be a bigger percentage in the u.k. compared to france. why? biggerthe u.k., wine is a part of business. people love wine and they love to discover new ones. all the one from the world, from africa, california -- in france, it is french one. vente-privee is a great way of discovering new one. -- wine.

it is good for the economy wine in the u.k., good for the producers of wine from around the world, and it is good for vente-privee. >> talk about your strategy. ofsked you about the dna vente-privee. you are doing so well. for me, the sky is the limit. you said you did not want to do deals with supermarkets. how do you choose what you sell and with whom you do it? >> we work with products from the supermarket. productsork with local , very small producers from everywhere in europe. we work with both sides of the market. , mas always with discounts limited time -- in a limited time. we do not want to compete with supermarkets.

vente-privee is the opposite. you do not seeing -- think about buying a product, but because you see it in a beautiful way and that a very good price and you buy it. after that, you go to the store. people, of the buyers do not fund the products they want, the going to the store within 24 hours and then buy it at least once in the next six months. >> how much can you grow from here? >> really, i think the sky is the limit. to10 years we went from zero $100 million. next will be 5 billion in europe. our market is europe. we are in the u.s., but our main market is europe. i do not see the limit.

the small producer from the u.k., from france -- it can sell , it can sell everywhere in >>.pe i want to get your sense of what the biggest concern is. we are a step ahead in the u.k. in terms of delivery. suburban kids and retailers are trying to find easier ways to deliver the goods. -- supermarkets and retailers are trying to find easier ways to deliver the goods. future is online and off-line at the same time, in the same store. future.the >> thank you so much. the cofounder of vente-privee.

in 20 minutes, it is "surveillance." tom, i bet you get everything delivered. >> we get everything delivered. -- you would be embarrassed over how bad my taste is in wine. it is an ugly american thing. we will have a real european focus on bloomberg surveillance this morning. ecb,bank of england and that press conference or mario draghi later on. wu will join us from bank of america merrill lynch. we will look at retail in america. it is widely predicted that it is not happening. profits are scanned in american retail. in american retail. the real focus on ukraine.

we will continue to touch on the continuing story in rome and brussels. >> david cameron seems to have turned a lot more hawkish. i totally agree. there has been a subtle shift in the last 12 hours. we will see how that plays out in the coming morning in the united states. >> thank you so much. "surveillance" in 20 minutes. let's take a look at how markets are trading. manus cranny is that the touchscreen. >> markets seem to be shaking off this risk for now, in terms of what is happening coming out of the ukraine. stocks are trading at a six-year high. view was positive on earnings, momentum will trump politics. have a look at some of the industry groups on the move. banks are doing quite nicely.

we will see what sanctions, if at all, come out of what meeting -- the meeting in europe. let's have a look at u.s. equity futures. waiting for the challenger report today. that will come hot on the heels of what we saw yesterday. that was low yesterday. equity markets are showing a rise. radio,se listening on that is your number. 1875. i quite like the move on the n. -- yen. i thought we would have a look at that. -- look at bonds outside japan. sell yen.

back to you. >> thank you so much. coming up, mercedes-benz bet big on tech. we will take you for a spin in the car that really needs a driver. a reminder that bloomberg tv will air the latest polities it -- decisions from the ecb later today. ♪

welcome back to "the pulse." live from london on bloomberg tv. let's get back to one of our top stories. international efforts to ease tension in ukraine are in full swing. over in rome, john kerry and his russian counterpart may resume talks. they are in the international conference. the two failed to reach a ukraine deal yesterday in paris. this will take the forefront. our policy correspondent has been following secretary kerry. what is the latest news this morning? >> there is so much going on, it is hard to know where to start. as we speak, and brussels, the eu is having an emergency summit

to discuss this bloodless seizure of the crimean peninsula. it is expected that that you willwarn russia -- the eu warn russia, but probably will not sanction them. russia supplies half of europe's natural gas. the u.k. are reluctant about slapping sanctions on russia at this point. they want to solve it diplomatically. cameronard from david in brussels. he seemed to be a bit more hawkish. is there any more progress? >> yesterday, we spent the whole day in paris with secretary kerry working very hard on his russian counterpart. he met with him more than three times. he really tried to press them to meet his ukrainian counterpart.

there were eu efforts to launch a group to bring together the russians and ukrainians. so far, publicly, russia is keeping the same line. the west is interfering. in one way, they have kept the door open for diplomacy. they have talks about a meeting of the former soviet republics in the beginning of april. kerry will have a chance to meet with lavrov again today. you can believe he will be pressuring him again for diplomacy. we saw washington put out a fact called resident putin's fiction. possiblediplomacy is if both sides are using such strong tones? >> fascinating things. at the speculation

moment, but it would be more likely that sanctions would come from the u.s.? there is less u.s. interest at heart. the u.k. is close in terms of bank loans with russia and closer geographically. any energy supplies being cut off will affect us directly. >> you are right. it is much more likely that sanctions would come laterally from the u.s. american officials have talked about this happening within days, not weeks. on the other hand, the kind of sanctions they can slap on russia are not that powerful. asset fans, visa bans. is not. russian trade that high to begin with and the u.s. suspended bilateral trade talks with russia. the real painful russia would come a see you puts sanctions on puts-- if the eu sanctions on them. we have henry kissinger weigh in

on this in "the washington post." withid, let's step back this confrontation. ukraine should be a bridge between east and west. he is calling for diplomatic resolution. he is hoping that cooler heads will prevail. >> thank you so much. time for some company news. for vendee's sfr unit valued at 14.5 billion euros. cracking down on illegal gun sales. facebook will delete posts that break the law. sk is trying to

break a monopoly with spacex. executive says mercedes is not making cars fast enough. that signals a healthy turn. he showed off the company's revamped s class. it is full of technology. >> this is mercedes-benz new s-calass. they believe it is the new future of motoring. many functions can be controlled by your cell phone. it even drives on the freeway autonomously. said it wouldu

drive completely hands-free if the law allowed it. >> it keeps track automatically. you just have to touch the steering well every 10 seconds. that is a legislation issue. >> you can preheat the car from your phone, check the fuel level, and located in the most confusing carpark. others arechnology still working on in the lab and puts it in the car. >> nobody has active body control this way. nobody has autonomous driving. this car has it all. driving moreake safe, it prevents more accidents, it saves lives. the computer predicts corners. >> watching the road, controlling or speed. how long before the driver becomes obsolete? geneva motor show. come, we have all

angles of the crisis in ukraine covered. we are live from kiev. we are live from the emergency meeting in brussels. for the latest details, we will be on the ground in both places. i will see you shortly. ♪

>> welcome back. let's get a check on the currency markets. jonathan ferro is that the touchscreen. >> euro-dollar is dead flat on

the day. ecb decision time is in a little under two hours. see no change at all. inflation did take a little bit higher. there will be plenty of questions for mario draghi. >> a look on what you need to watch for the rest of the trading day. we are joined by weight -- david tweed. the emergency meeting starting right now and brussels. -- in brussels >>. the key is whether we will see sanctions put in place or not. we probably will not see sanctions. the preferred avenue is to goad on the diplomatic route, but what happens if russia escalates its activity in the ukraine or will not be escalate the a cavity in the crimea? that is what european leaders

will have to be clear about what they propose to do should the whole crisis escalate. one other point to what is going to happen here today -- european leaders providing financial support for ukraine and really endorsing the government there. there will be a news conference coming up with the president in about an hour. this whole meeting is supposed to wrap up around about 3:00 here in brussels. >> what are you watching on the ground today? >> i am watching two places. crimea, the crimean peninsula. the parliament voted to secede from the ukraine and join russia. there will be a referendum on march 16. the people will vote whether to back that. with those 16,000 russian forces do in crimea. i will be watching for east of

ukraine, where we saw unrest yesterday. will that continue? of what the sense mood is like in kiev right now. is almost business as usual, outside of independence square. people are watching what is going on in brussels on their hopeful. they are also a bit skeptical that they will get the kind of assistance that they would like to get. getthat russia is going to punished as these politicians in brussels say they will. they are a bit concerned that that might not actually happen. >> thank you so much. we will be crossing life to him throughout the day. john, you are watching central-bank decision day. it is all about the european central bank come whether they have anything up their sleeve. >> it could be on the liquidity side of things. into the detail of

that just now, but the fact of the matter is that the data has not been terrifically ugly. it is not a free pass for the ecb to do nothing. 50 saying they are not going to cut rates today. we talk about running out of ammunition. the fact of the matter is that the best ammunition you can have for economic shock is a strong economy. you have to preempt it and find a stimulus early. i think it gets interesting in the bank of england. it could be interesting for a rate hike in the second half of this year. >> thank you so much. 1:30 with manus cranny, don't miss that press conference, the news conference with him mario draghi. bloombergght here on tv. "surveillance" is next. live from new york is tom keene

and his team. follow us on twitter. we will all see you tomorrow. ♪

>> the european union holds emergency meetings in brussels. they claim 18 ukrainians embezzled state funds. the bank of england reports

inflation, tepid economic growth. everything at cosco is on sale. good morning. this is "bloomberg surveillance." it is thursday, march 6. i am tom keene. running me is scarlet fu and adam johnson. did you go someplace warm? lex.e corner of 81st and >> very good. good morning. >> morning brief, indeed. overnight, here's what happened. estimates.d we have seen this over and over in a number of retailers. lekom says a sales of t-mobile is less likely.