>> on notice. russian president vladimir putin faces u.s. and eu sanctions if he is unwilling to defuse the ukraine crisis. >> payrolls friday. jobs numbers are due out in the united states. economists expect employers added more jobs in february than in set -- than in january. >> and pushing black empowerment. jacob zuma opens up to bloomberg as support for the african national congress drops ahead of may elections. hello. welcome to "countdown."

6:00 in just gone london on this friday morning. bloomberg reporters are standing by across the world did ryan chilcote is on the ground in russian president vladimir putin is put on notice to end the standoff or face sanctions. david tweed is standing by in brussels with more on the diplomatic attempts to ease the crisis. about jobsrro is all friday and south african president jacob zuma is on a mission to empower black people. caroline hyde has the details. >> the united states and the european union will move forward with sanctions unless vladimir putin joins discussions for a diplomatic solution in ukraine. ryan chilcote lines us from kiev. -- putinent couldn't and president obama seemed to be

moving in different directions for the time being. the crimean parliament has voted to secede from ukraine and to join russia and to hold a popular vote on the 16th of march, in nine days. they were already going to hold that referendum, they simply moved it up. remember that crimea is a region of ukraine and parliament is regional, albeit semiautonomous one. they said we are disbanding you vote, callingthe it a farce. there is a blueprint for these things in the former soviet union. where regional governments go rogue, like we have here, then have a referendum and then they get recognized by moscow. does theion here is,

federal decision matter at all? they have several thousand boots on the ground in crimea. make thisoing to referendum happen. there will not be any international observers, it would appear. in any case, it looks like the russians will recognize the vote. does it mean that crimea is going to join russia? it does not necessarily mean that. it means that they will ask her join russia. russia does not have to accept. it is a useful exercise in what russia is doing in crimea. >> ryan chilcote in kiev. >> let's get to david tweed in brussels for more on the european union response to the crisis. we saw the eu yesterday coming out with measures to get russia to the table. that is the intention. talk us through the latest as far as what brussels is asking of the russians. >> there was a bit of disagreement within the european union yesterday because there

were certainly the hardliners who wanted to see sanctions imposed a lot quicker. in the end, they came up with a compromise and that included the automaticity of sanctions which are going to kick in according to various timetables. i spoke to the president of lithuania, one of the big hardliners. she seemed to be satisfied. >> i am a little bit satisfied that the european union is weing to catch up because already, in europe, decided to start to do some sanctions, not everything, but some. repeated thatso this brutal act of aggression is good. includes ifaticity russia does not come to the table, they will start talking about withdrawing troops from crimea. then we will see asset freezes and after that, if russia does escalate its activities in the ukraine and further destabilize

the ukraine, and we are going to have further economic measures put into place. >> what are we talking about when we talk about economic consequences? >> this would be the big guns. david cameron was speaking afterwards and made it clear what they are thinking about. >> if russia takes further steps, the statement issued today makes clear that there will be far-reaching consequences. let me read you what it says. further steps by the russian federation to destabilize the situation in ukraine will lead to additional and far-reaching consequences." went on to elaborate on what those consequences could be. he said that there would be consequences for britain if you look at financial services. consequences for france if you look at defense. he said these consequences are worth it if you are going to

stand up to aggression. even though we are not anywhere near those sorts of sanctions yet, these are the sorts of inks that european leaders are beginning to think about. >> more from david tweed as we go through the program. >> the jobs report is out later. jonathan ferro is here with a look ahead. 7.5 hours. >> exciting times, looking for 149,000. if that number comes out, the three-month average will be 112,000. if these were the numbers at the end of last year, would they have ever tapered? ofund that magic number 200,000, what the guys on the board and janet yellen wanted to see. that is what they want. blaming the weather, the number of times they mention the weather was north of 100. weak data, they will blame the weather. economists have been missing

this number by a good margin over the last two months. howt just raises questions, high is the bar for the federal reserve to deviate from its current tapering policy? >> janet yellen has already talking that has artie talked about needing a significant change in the direction of the economy. the federal reserve president of philadelphia, manus will catch up with him next week, talking about not just tapering, but not being aggressive enough in the taper. you a sense of some of the people on the board. the other side of this is unemployment. now 6.6%. we are .1% away from that threshold. does it really matter anymore? no one expects them to consider putting up rates at the next meeting. they could change guidance or scrap it altogether. good question.

we will be listening very carefully. >> elections are fast approaching and the support for the incumbent african national congress has been dwindling. bloomberg said down with president jacob zuma to talk through his economic and political policies. here with more is caroline hyde. concern for many investors has been the ongoing strike in south africa. did he comment on that? >> he did. the association of mine workers and construction union has been on strike for six weeks now. that is about 70,000 members. we know the effect it is having on platinum mines. prices are up eight percent this year. reducers are saying they have lost more than $650 million in revenue. the workers themselves are forfeiting half of that, almost $300 million since it started in january. onmin is one of the traded miners. they say they will not meet their target.

wages tors want their be more than doubles. three years is fine. that is the minimum amount of time to give us that rate. $12,500. want thewhat they minimum entry level paid to be. the company says that is unaffordable. they will give a 44% increase. clearly at loggerheads here. state mediators say the gap is too big. we need totelling us find a solution, but it does not seem to me like he is coming up with answers yet. >> talking to both to say let us find a solution to the problem. we play that role. the workers say no. that you must consider. what is going to happen to the economy itself? on the other side, the employers

must concede. do, that is going to is our concern. be recognizing the disagreements, not coming up with solutions. these strikes were deadly in 2012. this is a real concern. >> the strikes are not just about mining, perhaps a dimmest ration of water frustrations among black workers. how do they tackle that? clear illustration, disillusionment among many of the block -- the black population in south africa. they feel like the distribution of wealth is not happening quickly enough to look at the anc report. elections in may have fallen 10% in the last year. they have a 53% support, we understand. jacob zuma is acutely aware. they have had power for two decades. this is the system -- the stiffest competition they will

have yet. government will try to push ownership in the economy. >> you have to establish the black economical power so you can deal with this to empower people. properly. so that there is no destabilization. those who have been running the economy, how do we bring in others into that system? >> i think we will hear him repeat these phrases a lot in the run-up to the elections. the case still stands. earn, on average, six times more than black employees in south africa. >> nelson mandela was booed a couple of days ago a -- he was booed at the nelson mandela memorial a couple of days ago. saying it is not personal. >> it any other government leader or president was booed, i think they would take it

personally. it must be hard. thicker skin than many. >> coming up, are the foreign exchange markets underestimating recent events in the ukraine? our next test says the muted response suggests a are. ♪

>> time for today's company news. u.s. supermarket safeway has equitywith the private -- with albertsons. they are merging the chains. cerberus is betting that a larger chain can better fend off rivals. iceland's largest bank may cap international bond markets to refinance as much as $2.1 billion of debt. alternativeys the is to get an extension on the debt. if they cannot reach an agreement, they will have to read -- have to pay their debt by 2016. >> and they cannot make their full interest payment that is due today. they say their attitude has been to let the market decide. this could be the first company in china to default on the company's onshore market.

>> a landmark event perhaps. welcome back to "countdown." >> let's take a look at the currency markets for its reactions. yesterday's rate decision from the bank of england and the ecb and a look ahead to today's u.s. jobs report. from the bank of new york. good morning. will the fed and outside economists ignore the weather jobs report, the third in succession if it does materialize today? >> i think there is temptation that they might want to see a few more data releases. janet yellen has spoken openly about the weather impact. she was quite dovish. even if we get a good report today, perhaps 150,000, just above consensus, you might still learn that they are willing to pause for a little bit. onbecause the bar is high the number of fed presidents that have spoken in recent days. charles plosser said the fed

might have to quicken its pace as the economy picks up its pace. >> there is a lot to lose. then bernanke made that clear under his regime. he expended a lot of clinical capital to make sure his legacy was one of success. the he was going to save u.s. from deflation and everything the fed has done over the last few years has been to that end. janet yellen was standing by his side when i was taking place. there is almost a case where they are willing to accept a little inflation risk. there tried to generate recovery that is irrefutably solid and they can then start tapering. they will start to quicken the pace when they believe that is insight. >> you are looking through the weather. you are suggesting it is all weather-related. >> i take janet yellen at her word. see -- she seems to think there is a fairly hefty element. figures,look at the

how the participation rate varied at the end of last year, i think you suspect that if we get a mediocre figure, that is not going to be enough to prompt the fed to accelerate the pace of tapering. i think she will want to see at least another month's worth of payroll figures. >> we often see investors flocking to the u.s. dollar. you say that has not been the case this time around. >> absolutely. it has been an extraordinary period in foreign exchange markets. when we saw a russia invade jordan -- georgia, afghanistan a long time ago, there was a big change in the foreign exchange markets. this time around, there has been an absolute indifference. >> are we just so used to crises? >> you get i get idea when you look at -- you get a good idea when you look at the volatility. you are seeing some of the lowest volatility statistically in quite some time. seen three lower levels of volatility in history, which is remarkable. past, it has tended to be

associated with yield-seeking behavior, investors trying to sell volatility to extract a premium. you are seeing that elsewhere in the eurozone debt markets. we are seeing a rally in eurozone debt, which you might attribute to the recovery. then again, the omt is threatened by its referral to the top european court. drahi -- draghi signaling extended gains in the euro could become a performer -- a concern. is there a level where druggie -- where draghi starts to get worried about the euro? >> quite possibly, but i do not think the market will take notes. he has said that they are ready and willing to act if necessary. everyone wonders what if necessary means. i suspect the market will probably run roughshod over this. from youl have more when we come back. we will take a short right now.

we will talk more about the european central bank and the bank of new england -- and the bank of england as well. ♪

itrussia is aggressive and is not in accordance with international law. we call on russia to withdraw their military troops. it has always been a discussion. we ended this very clearly and we now have to react if we do

not see a de-escalation of the conflict on the russian side. >> that was sweden's prime minister at last night eu leaders meeting on ukraine. david tweed talked with several of those in attendance. we will hear from several on the morning here on -- in the morning here on bloomberg. this is "countdown." >> we are back with currency strategist neil mellor. we were talking before the break about the fact that the euro has seen low volatility despite the crisis taking place in ukraine. let's turn our attention to the pound. we have seen a lack of volatility in the pound. is that specifically cable? talk us through what is driving a. is part andhink it parcel of the leveraged plays. picking up pennies in front of the steamrollers is the accepted phrase.

currency and they are happy to swap the dollar for it. not think it has that much to do with what the bank of england is doing. great expectations has not changed -- have not changed -- rate expectations have not changed that much. >> and there is a vote coming up on independence. do investors not think scotland will vote for independence or even if they do, it is not significant? >> that is a good point. the same reasons the market is largely ignoring ukraine. probably a lot lower than the impact we would expect from ukraine. independence will probably be voted down. there is a small risk. we do not know what it entails. the parties arguing amongst themselves as to what it would entail. it is a small risk that is not seen through sterling. yenhat does the japanese claimed all of this? set for its biggest weekly gain against the yen in four months.

>> i suspect that shinzo abe's heart was in his mouth when he starts to see the yen depreciate as it has. at the start of last year, they aboute want dollar-yen at 100. it has settled around that label -- that level. i think it will probably say around those levels. the big risk is that if the market does see some geopolitical event, that is when dollar yen will start to fall dramatically. probably very little the boj could do. >> would pumping more liquidity into the country help if and when it needs to, possibly after the implication -- implementation of the higher sales tax? >> i think they have to do something already. it is getting a lot of pressure from the government. come the day when the markets are caught the wrong way around in that trade, then i think it

would fall dramatically. >> quick comment back to the ukraine. the ruble has reacted in a way many would have rejected, down over 10% for the year. does it bear the brunt of ruble?an sentiment, the does it continue to do so? >> absolutely. i am talking generally about emerging-market major currencies and if the crisis escalates, we can expect more of that area >> thank you for joining us. out of telecom italia, suspending their common shares. this is the first time since the company was by the ties. they are going to stop paying a dividend. this had been expected by a number of analysts. a net loss in 2013 bigger than estimated by analysts. 674 million euros is the loss. italia later in

the program. >> coming up, a look behind the scenes at the italian fashion label. ♪

>> crimean lawmakers have called a referendum for march the 16th. there has been into national backlash. the u.s. has issued visa bans on russian officials. in back the financial aid package for ukraine. put russia'sso president on notice. and a man identified by newsweek

as bitcoin's creator has denied any role in the digital currency. said hedo -- yakamoto first heard of the currency three weeks ago. here isain reason i am to clear my name. i have nothing to do with it point. -- bitcoin. i was an engineer doing to been also. else.ng something >> welcome to "countdown," i am mark barton. >> it will be the first default ever in china. racing for more zombie phones to come out of the woodwork. this could be significant.

thing is,rning, the if you look at how much debt a lot of these companies -- even the companies in hong kong, this might be the start. the number of highly leveraged debt to equity ratios of over 200% -- it is up more than half. if you compare the numbers from 2007, we were at 150. that is across non-financials listed in china here in hong kong. that is about triple to under $2 trillion. feel for this company, shanghai shower. they are the first in line. today is when they have to make the interest payment. president actually confirming, they cannot make

that interest payment today. >> where are we looking for the immediate impact of this default? >> a lot of people that we talked to say, look at similar rated company. a goodople say it is thing we're seeing the default because it helps price credit and risk properly. to see if interesting the bond markets can have the proper mechanisms to iced them properly. the yield is now at 22%. borrowing costs in general for junk rated companies in china have actually gone from just over four percent. they are over eight percent now. that is only sustainable of the business is growing faster. they are slowing down. there's a drying up of cash flow from operations.

this year and next, you have a lot of these bonds maturing. a lot of these companies will have to tap the markets and refinance the debt at what is likely a much higher financing costs. let me leave you with this. there was an article from a south -- the south china morning post. of domestic how 96% credit ratings -- from domestic agencies -- are either aa or above. met you guys -- back to you guys. >> now with the rock 'n roll has made-- his group eight multibillionaire. we caught up with him in his office in northern italy. jet setter designer, self-made man. he is worth more than $3

billion. he has been called the genes -- jeans genius. 58, he has built him him empire.- an he considers himself an outsider but is at home at in the headquarters here. [speaking italian] >> who is the stupid italian that comes here? italian] he launched diesel in 1978. the tournament -- turning point came in the mid-80's. it was a huge success. indiesel now has 400 stores

80 countries. is the day i arrived, my first day. >> he has no desire to become like the french fashion booking lvmh. -- behemoth [speaking italian] >> he is always looking to bring in fresh young talent. -- he wasrmerly formerly lady gaga's designer. >> how did you meet? >> a dating site. >> he needs to step back and allow young talent to come forward. he says it is about finding people to place his foolishness.

bloomberg. initials ared the are on his finger to celebrate his 50th birthday. how will you be celebrating her 50th? >> so i have your initials that toad. -- tattooed? >> countdown. >> i don't know if i could fit that in. >the road to the champions leage quarterfinals. they are becoming rougher than some english clubs had hoped. sports is next. ♪

works for the very first time, we have had the formulation -- opportunity to formulate ukraine's needs at this critical moment. the eu leaders meeting on the ukraine. we are continuing our coverage. david will be leaving us -- ringing is live reports from brussels. to acquirepaid money patents frombm -- ibm. andter now has 956 patents

the 100 filed patent applications. the pills are made with an ingredient from an indian plant that fails regulatory inspection. the medicine generates may be $4 billion in sales. it was the second-best selling drug for the company. the company is trying to conserve cash. phoneition in italy's market -- they reported the third straight annual deficit. welcome back to countdown. >> coming up on 6:41. invented by a noble laureate. it has a unique pedigree. but it has been a tough few

years for families everywhere to cut back. jessica looks at why the british brand is back and ready to take on the world. >> i am martha stewart. i have written several cookbooks. today, i would like to talk about the augusta -- aga cook stove. >> royalty have joined the club. -- there's nothing exceptional about the design. >> the secret is its dense cast-iron shell which resorts -- absorbs and retains heat, so food is cooked by radiant heat, not air. >> you go from having oil and gas into having a product that is largely electric. physicist invented the all-in-one cooker in 1922.

into britain and reinvented and marketed. the earliest and most successful spysman -- world war ii david ogilvy. are made in the foundry in the english midlands and sale -- assembled by hand. it has been a tough few years. on the factory floor, transition is afoot. these new cookers contained electronics. , they traditional agas turn on and off controlled by a smartphone. >> the modern is the vest -- best. that is why we can go from being a successful nietzsche brands to a global product.

brand to a global product. >> and about 20 minutes, they will release their earnings. he will share his insights on the u.k. housing market. i understand you can get them impede. i don't know if that will be your thing. >> i am more of a blue man. our next guest does have a cream aga. the champions league starts again next week. three of the four clubs have a mountain to climb to reach the quarterfinals. analysis and addictions. -- predictions. people call it like a family member. >> i think it makes me into a good cook. >> i don't know if it makes anyone a good cook. good to see you. big round of games kicking off. a couple of weeks ago, you would have hoped that the english

clubs were doing better than they did in the first leg of the 16. the odds reflects that. >> they had the toughest ties. they play against munich and barcelona. the scores were no no -- nil-nil. they both conceded. munich traveled to buy -- bayern. munich has not lost at home since then. that is whyetter -- -- >> almost no chance. >> unfortunately for arsenal fans. >> they should be fine. man city not so good. he used to play for madrid.

gives them a bit of hope. >> a bit more hope for of manchester united fans, but not for long. >> when the draw was made, everyone was expecting united to walked the last eight. he didn't fancy that chance. willought, we have -- we make some money what we can. they got this amazing result. they got a second goal as well. the fact that they kept a clean sheet shows that, if they get one goal -- >> i think they are going to lose the shackles. it is all going to happen. that is my prediction. >> these are the favorites. >> they are the favorites. frogs -- clubs, 70%. it is also -- almost turning into a close -- >> two of those could go to the

next round. >> barcelona -- >> they could all meet each other. they might be knocked up by the final. third favorite -- they are doing well. they won their first six. no danger of slipping up and that getting there. schools that schools. -- he scored 40 goals. brilliant.bsolutely he has flown under the radar a little bit. favorites. --r for favorites. >> behind -- i have been talking to about psg. i think they should be ahead of them. >> this is relevant because

malan -- you think athletic oh might not -- >> all the winners in the group stage, they won their away games. is one-zero.- it >> i love the stats. >> these are interesting. they show that he plays on goal more than any player other than rent although -- renaldso. it is the shots inside the box. 42%. only just taking potshots from out of goal. sometimes, he is just taking chances. when he is there, they always have a hope. the work rate is one thing.

the performances are better, more shots. boy.ve got the bad he was good against athletico. >> he knows one or two things about the champions league. >> he has won the cup edition three times. >> who is going to win the whole thing? >> lookout for psg. team -- thee only way they play, defensive end counterattacking. chelsea can really cause problems. >> that's my production. thanks. stay with us for the newspapers. >> the world health organization released new guidelines for sugar intake. --y tuned to find out

newspapers coming next year it -- coming next. ♪

let's welcome back to my i am an edwards. -- anna edwards. >> let's talk something smelly. >> let's clear this up. it is the times.

-- when you walk shop, is a smell that potential he -- potentially might come from laboratories. apparently it makes us spend more. they have done investigation great a study found gamblers put 45% more into slot machines when they smell something pleasant. spend more on nike trainers in a scented shop. -- in aufacture smells shoe shop, that would make sense. there was a sign at the reception desk that said, we do help you like are no -- our ne w signature scent. >> make sure the house smells of

fresh baked bread. >> amazingly, they also produce vile smells. apparently this is all used -- >> not like the smelly little christmas trees. >> i don't know. a hundred pounds a month, you can get something for your shop. >> sugar is all the rage. >> the world health organization has given its latest guidelines on how much sugar we should consume. here is the helpful guide as to how many teaspoons are contained in these everyday items. it's not the things that you expect to have a lot of sugar. fruit juice. here, 11 teaspoons of sugar in a caramel cappuccino.

it does have the cream on top, the guidelines from the health organization is anything between's 6-12. >> per day. >> and you are basically eating your entire allowance of sugar if you have one of those particular beverages. this outhis is all for for consultation. english chief medical officer said we might have to tax sugar. wilshire injured this week playing for england against denmark. he is now doubtful for the world cup. he was injured in a bad tackle with liverpool's daniel. he is going toe theoryut the conspiracy

that a liverpool player will derail an arsenal player. when he was first injured, he was in tears. he played for another half-hour. with a broken bone in his foot. >> it did him no -- it probably made it worse. we can look forward to his reaction. well in the six nation rugby -- last year, they headed to cardiff knowing if the grand slam is when you beat all your opponents. they were thrashed. a lovely article in the guardian. 30 reasons why this year may be closer. england is significantly better. it is 36 years since wales 12 games in a row. -- two games in a row.

come on come england. >> we will have more on the diplomatic maneuvers to get prudent to the -- president clinton to the table -- president vladimir putin to the table. ♪

>> russian president putin faces sanctions if he is unwilling to diffuse the ukraine crisis. >> payroll friday. job numbers are due out in the u.s. >> and the bitcoin founder. the man said to be the creator denies involvement. he said he only heard about bitcoin three way to go -- weeks ago. >> welcome to countdown, i am arbartten -- martin --

on. the u.s. has warned president putin that they will move forward with sanctions unless he joins in for a diplomatic solution to the ukrainian crisis. >> good morning, it would appear that the west and russia are very much on different -- moving in different directions. the crimean parliament, presumably at the direction of the kremlin, voted to succeed from ukraine and join russia. did -- they will put their decision to a popular decision at the 16th of the month, and nine days. that is when everyone will get the boat on what the parliament has already decided. government, the parliament in key of, disbanded the army in parliament and in old the boat. nulled that vote.

there are boots on the ground and it appears russia once the referendum to go forward. it certainly well. in othera blue print parts where russia has moved in. there has been a foremost -- formal request support. what you get is a statelet, a russian foothold. it does not mean russia will and next this area. it leaves russia that ability, should it want to. card whereem a handy they have a part of the country saying, we would want to be part of russia. >> thanks, ryan. ukraine. >> let's go to david in brussels for more on the european union response. putting vladimir putin on notice. they absolutely are.

one of the interesting things to look at is the fact that even though the u.s. has said it will put in place travel bans and the european union has cut off talks on visa liberalization and trade, both of them are not actually moving to the big guns yet. not the u.s. because they are waiting -- the legal basis for these bans in place. the european union says they will only put their slightly bigger guns, also travel bans, into place if mr. putin does not come to the table. the ball is in the court of president putin. -- differences of approach to we see from the you and u.s.? some people are making a lot of the different approaches and others are playing down the differences. stand, it looks

as if they are working in unison. what they are both trying to do is to get putin to negotiate. the negotiation will be over ukraine. they have been talking about the referendum that will be taken place in crimea. that will be something that is putin side of vladimir when he enters negotiations. but we have to see what happens with the eventual long-term influence that russia has in ukraine. one thing they will be looking agreementpartnership which the european union said they will go ahead with &. things as they politicalsign me parts. the economic parts are still open. russia will try to get in on that. >> thank you for joining us, david. in brussels.

>> the u.s. job report is out leader to read a look ahead. >> we need a clock really. we are looking for 149,000. economists have been wrong on this for the last couple of months. always a big spread when it comes to this number. it is a bit of a guessing game. what is interesting, the 149,000 today. in the three-month average drops. the question i have been putting forward is, if we have that three-month average at the end of last year, with a ever have --rted the paper? -- keeper started the taper? probably not. janet yellen says we need a

significant change in direction. it's about the outlook. the president of the federal reserve of philadelphia -- we catch up with him monday, which will be a fantastic institute. he is talking about celebrating the tapering process. he thinks they could fall behind the curve if -- as the economy improves. he is talking about accelerating when people are talking about reversing it. >> he suggested, the path will be suggest -- consistent. >> $10 billion seems to be the magic number. they are expecting this to move on autopilot. the interesting part for me is rate policy. going into the next meeting. we will get the summary of projections. look for the top in the document hearing where various -- in the

document. where various officials think that will be. are close to the 6.5% rush holt. -- threshold. >> it will be interesting to see --what expense -- ask that to what extent it needs to have catching up. >> and when will we have the first clean number. it is a hards, game to guess how much the numbers are affected by whether. -- weather. >> there is the big debate, is a structural or cyclical. >> that is why you are seeing unemployment low. a couple numbers say if the us -- if the participation rate was as high as it was in 07, it

would be as high as 10%. >> thank you. >> worrying. a company says it cannot make its full interest paid -- payment. ever in china.lt they are bracing for more zombie firms to come out of the woodwork. where are we when we are looking at this default? >> good morning, guys. what ever one has to keep in thisis it is not only company. not only the solar industry. this is the sector that the chinese government very heavily supports. if we go back to this company, it looks to be official. markets are just about closing. we do have the first default in china's on market. -- a bond the market. toconfirmed he was unable

make the payment, oh $14.5 million. he said they could only afford $600,000 u.s.. there has been a massive amount of debt will top on a lot of ella cheats. sheets.ce if you look at that to equity ratios, the number of firms has actually jumped by about 50%. that, it is the absolute amount of debt. we are at just under 2 trillion u.s. dollars right now. as ubs mentioned yesterday, this could open up a second wave of defaults to come. >> is that the ripple effect question mark there could be more defaults? what are the other affect -effects. >> there will be a deep pricing

if you will of the bond market. you have the first default. markets learned their lesson. now investors will learn their lesson. it is not all peaches and apples. it can happen. we have seen borrowing costs go up from four percent to eight the junk ratedas companies. some of the things to watch closely our maturities. all of the bonds mature in the -- a lot of the bonds mature in the next year or two. they will have to refinance at higher interest rates. >> david,. works -- david in hong kong. they are saying they have

priced their ipo and will issue 600 million shares. >> one of many who were hoping to market. >> many ipos coming in the spring. they have not moved to the main market. let's change tacts. who first published a paper on the digital currency that has become the iphone of that coin -- backbone of bitcoin? million -- denials to the press. it's a like a film, but it is not. could this be the uncovering of nakamoto. group ofseudonym or programmers? what we know is he wrote the

paper with the initial source code for the coin. -- bitcoin. physicist, aar-old former defense industry and government employee. he changed his name. reporters were outside his house. the cherries -- chased him. he chose one journalist and went to lunch. they were hounded him at the restaurant. they went to the ap offices. he said, i deny it. newsweek stands by their story. the woman who uncovered it says, i confronted him before the publication and he said, i am no longer involved in that. i have been turning it over to other people. says it was misinterpreted. >> he says there was confusion.

here is his denial. >> the reason i am here is to clear my name. i have nothing to do with bitcoin. nothing to do with developing. i was just an engineer doing some analysis. -- something else. >> why would you use your same surname? this is what many of their critics have said. >> big cynicism, particularly those who love the coin. -- bitcoin. they say this is a gross breach of his privacy. says, if nakamoto wanted to be anonymous, he tried. he did everything he could to stay anonymous. why would he use his real name for the paper? >> the only way we would know

who he is is through digital signatures. he has put a unique encryption key that could say who he is. wortharently owns coins $600 million. not necessarily this man. -- 70% hasre saying been rewritten from the original code. concern is the violation of the privacy if it is indeed him. take a look at the piece on our website. >> the usual suspects. >> our next guest says he may have to take his this rethink his positive stance on the eurozone. we will find out why. ♪

>> time for the company news. safeway has united with albertsons. chainse merging the two for a 9 billion or deal. -- $9 billion deal.

they are betting they can better fend off rivals. international bond markets are refinancing $2.1 billion of debt. ceo's is the alternative is to extent -- except an extension on the debt. they will have to begin refinancing by 2016 if they cannot reach an agreement to read and the solar company says they cannot make their full just payment. they say the shanghai government has been to let the market decide. paymentto make the marks the first company to default in china's onshore markets. >> it is 718 here in london. the 7:18 here in london. we are joined by a capital manager. they give for coming in. -- thank you for coming in.

of's talk about the impact the ecb to do nothing. you say the reason you liked the eurozone stocks is because the ecb is about to turn japanese. something qe like. market,est performing where in fact be central bank was having the most easing -- we were thinking the ecb could be one of the most -- the bank of there's probably going to be some tightening as well. so far we do not see the evidence of it. there is no movement of interest. there is still some chance of action fromother

the ecb, but so far, we did not see anything. >> to early for you to change the preference you have for eurozone companies? ofwhen you have a lot volatility, we see a lot of inflow going out of the emerging market into the developing market. a lot into the eurozone. it is not a bad place to be. the problem is you could be in a situation like in switzerland two years ago. such an insult money that the currency became too expensive. -- inflow of money that the currency became too expensive. >> draghi signaled that the currency could become a concern. below 138, weing could be well into this territory. if you look at the earnings of european companies, companies are facing dramatic headwinds.

how the currency has been difficult to export. i am thinking -- he went into this territory already. >> the euro has not been affected by events in the ukraine. what you think? >> if you look at valuation in terms of earnings, it is quite reasonable compared to other emerging markets. all we know is the position -- if you think there will be strong sanctions against russia or will not be -- the worst-case scenario would be crippling sanctions like we have seen with iran. that will make exports and consumer confidence and company confidence weaker in russia. if we don't see that, it may be a good opportunity. --thank you coming yannick. thank you, yannick. more on his investment strategy when we return. ♪

>> welcome back to countdown, i am an edwards. -- anna edwards. -- back withe yannick. mistake default for china. a small amount. the situation of the company has

been week for many months. the industry is not doing very well.they are restructuring the external debt. all we know -- it was a well-known fact. andill see a creative unsure china. it is a significant event. i think it is a good event. -- canush investors to that really be done in such a orderly fashion? >> if you pick and choose who will default and who will not, it could be the possibility of -- the trust fund was about to default. probably because it was seen as too much big default.

>> too big to fail? we're craving a big ripple effect. this one is small enough. there might be some change in terms of bankruptcy law which would be a good step to make how investors can recoup. >> some are likening this to bear stearns. >> we don't know what will happen a one-year time i don't think it's that big of an event. i think it is a step in the right direction. investors have to write the risk. -- price the risk. you have to keep in mind that 80% of the market is issued by a local government or companies that are linked with the government. risky.re, it is not less i think it is still under control.

>> thank you, yannick. >> 7:26. going inside the latest film. the grand who to test hotel. -- budapest hotel. ♪

>> these are the top bloomberg headlines. a man identified as the queen's creator has denied a role -- as creator has denied a role in creating it. he was chased by reporters to los angeles after the magazine published a profile of him. >> the main reason i am here is to clear my name. i have nothing to do with bitcoin. nothing to do with developing. i was an engineer do is announce -- doing something else. >> crimean lawmakers have called

for a referendum on march 16 to turn the peninsula to russia. has noy the referendum legal grounds in ukraine. u.s. has issued visa bans on russian officials. have puts. and eu russian president vladimir putin on their list. they say they will unite in imposing sanctions if putin remains unwilling to the go sheet on ukraine. -- willing to negotiate on correct -- ukraine. i am mark barton. have warned the eu president putin they will move forward with sanctions unless he

joins negotiations for a diplomatic solution. let's go to ryan chilcote for a look at how is mrs. view the effects. fx.iew the -- for a look at how businesses now to look -- view the effects. >> i am joined by the founder of a startup. his name is nikolai. ms. andooking at is what business thinks about what is going on. what is your take on the event in crimea? >> i don't like it. ukraine once ain war with russia. a war withwants russia. we don't want russia to grab a part of our country. i have friends in crimea, and they are upset about that. >> you were out on independence where? -- square?

>> almost every person i know was there. >> because? >> they want a changed country. businessortant to make here in ukraine. >> they brought their i.t. ways with them. tell me about that. it is interesting because a lot of the i.t. people make organizations during the process. they created applications and websites. a lot of other things. >> tell me about casual. it is in cap in the development it is ana develop -- apt in the development stage. >> how has it been watching this

project with the product -- protest going on? >> it is hard to keep working on your product. it is difficult to stay focused. it a love the distractions. -- there are a lot of distractions. >> looking for money now? with peopley, thinking maybe ukraine is about to end up in a civil war or it will russia, it is not so easy to find the money. nevertheless -- it is for investors from ukraine. right now, during the last month, there was a lot of

support from people i know from the usa and europe. hi, nikolai, can i help you? i try not to speculate about what will happen. >> a lot of people know that there are cap devote -- app developers in russia. in belarus. ukraine came as a surprise? >> ukraine is a big country. 40 million people. 100,000 developers. they are very talented because -- for me, a ukrainian developers are great. >> how will those the market differ from russia? >> -- how does the market differ from russia? >> a lot of our developers work for the usa market.

they speak with people in the usa. >> because the market is smaller? >> the market is very small. the russian market is bigger. but in comparison with the usa, it is small. speaking withure you. we wish you and ukraine need guest bank -- ukraine the best. we will continue keeping everybody up to date on the news in ukraine. also looking at the perspective from businesses here on the ground. back to you. >> thanks, ryan. nikolai.cofounder, >> we are going inside the latest releases to hit cinema. "300: rise of an empire" and "grand budapest hotel." thank you very much for joining us. with "grand budapest hotel," it

has a grand -- a long and illustrious -- ofhe has a repertory company actors he likes to uses. at the top of the bill is ray finds -- ralph fiennes. >> he does quite a good comic turn. >> you wouldn't necessarily know it was tilda swinton. she is playing an 84-year-old woman. she is the concierge of the hotel. her special talent is to supply the needs of the rich old ladies. makeup is an 84-year-old woman. ralph fiennes is also very funny. >> how does it compare to his previous films?

we have the box office totals of his films. theyoyal tenenbaum's -- were breakout films. topped thet quite royal tenenbaum's, but it is up there with the first two hits. >> look at the figures. moonrise kingdom, his last film made $68 million. aquatic, 35 million. ever break 100 million. >> he is a very acquired taste. some people saying too much style, not enough substance. >> they have a different style, one from another. >> they are usually about privileged companies -- characters. world within worlds. >> for people who don't have time to being erotic, -- to

being erotic, -- for people who eurotic,ve time to be nuerot we have "300: rise of an empire ." >> quite an unknown cast of clay rogers. she is playing a persian naval commander. tandemstory happens in to the first story, based on the battle of monopoly -- the spartans. >> not really a sequel as much as a another bit of the war happening at the same time. we don't see many of the cast of the first film returning. a porcupine is like at the end of the first time. it is noter is not --

about historical accuracy. he wants to get people interested in history, then they can find out what happened. >> is a unique style of film. scenes.ly the violent everything is slowed it down. that has been much copied and. eat. different director, but the same slow-motion. you get the blood spurting. especially if you watch it in 3-d. >> can we look at the frank miller totals. he directed the first film and a few other films. he was behind simcity. -- sin city. million. made $500 >> i think this could match it. there are naval battle scenes. really right set secular -- quite spectacular.

i'm not sure it has the depth of the first film. >> it sounds gruesome. thanks for joining us. celebrities have been endorsing a call products. find out who is officially endorsing jack daniels. hotshots coming up.

>> a look at some of the most compelling images of the day. ♪ celebrationarnival ended on wednesday. but to the residents of rio, the traces of nonstop partying remain. trash collectors are on strike. it has been five days since anybody saw an empty been. -- bin. neighborhoods begin to smell as heaps of garbage lying he street during move over racecars, the international speedway infield grass has been transformed into the toughest event ever. normally it is used for the daytona 500 race.

race kicks off tomorrow. and when frank sinatra wanted it his way, he asked for jack daniels need. -- neat. according to the tennessee whiskey maker, the crooner was buried with the bottle of jack daniels. now fans will be able to enjoy the new sinatra select whiskey for $160 a bottle. welcome back to countdown. >> the time in london is 7:44. invented by a noble laureate, the cooker has a unique pedigree. it has been a tough few years after the recession for families everywhere to cut back to read -- cut back. we look at why the british brand is back and ready to take on the world. >> i am martha stewart.

i have written several cookbooks. today, i would like to talk about the aga cook stove. celebrity chefs, performers come apart's. even royalty have joined the aga club. there something exceptional about the design. caste secret is the dense iron shell which absorbs and retains heat. food is cooked by radiant heat, not heated air. >> the last 10 years, there has been a big switch. gas to afrom oil and product that is largely electric. swedish physicist gustav invented the all-in-one cooker in 1922. it was brought in to print and -- britain in the 1930's and reinvented. the earliest and most accessible

salesman was original adman and world war ii spy david ogilvy. made in the original foundry in the english midlands, a symbol by hand. -- assembled by hand. sales plummeted during the recession, forcing them to lay off a fifth of their workers. but transition is a foot. these new cookers contained electronics. , they traditional agas turned on enough controlled by a smartphone. aga is the vest will -- best we have ever made. it can go from being a successful niche product to a global brand. >> a brand that has stood the test of time. on the move starts and 13 minutes.

-- in 13 minutes. >> they told us operating profits were higher. there were a number of house moves -- that's coming up. >> some interesting thoughts on the housing market in the u.k. let's talk about the broader market. unchanged -- equities for the week are slightly declining. the first week of declines since january. we have and the dax -- the all-important u.s. jobs report. >> exactly. china the top? we will be talking to the head, andrew wilson. about china and ukraine. we want to be to protect your money. we will be asking him about some telecom tostries --

tell you -- italia scrubbing their dividend. >> thank you very much. we will be back at the top of the hour. congressrican national has been dwindling in support. we sat down with jacob zuma to talk through his economic and political policies. here is more on the interview. the ongoing mining strikes have taken center stage. did he comment? union thatis the represents these miners. platinum prices have been going up. producers have lost millions. employees have forfeited about half of that.

wages -- you their don't make much as an entry-level minor. they want to double that. they-american platinum -- say that is too much. negotiations are big between the minors and the union -- nminers in the union. he says they are trying to find a solution. >> let us find an amicable solution. we play that solution -- role. that must consider, if the companies pay the wages, what will happen to the economy itself. as well as on the other side, the employers. they must concede -- what will concerned those are

-- that is our concern. >> this is the example of the growing disillusionment and frustration among many. earn sixl -- workers times less than white workers. this is a problem that jacob zuma needs to tackle fred and center. he is trying to talk about getting more workers within the economy. day, --stat of the popular -- the most in the whole of england. while.uare-mile -- short break.a nine minutes until the start of equity trading here in europe. a day dominated by the jobs

report of the united states. we will have more for you when you me return -- when we return. ♪

let's welcome back to countdown. >> time is 7:54 in london. let's talk about the macro themes dominated by the jobs report. 149,000.g for

that would put the three month average below the 194,000 average we saw last year. what does it mean for the fed? fed officials are saying little. >> what does the first fall for china mean? >> it is a $14.7 million interest payment. everybody is giving china the benefit of the doubt. sessionreally double dabble in capitalism? see companies postponing bond sales. theagine interest rates -- borrowing costs will be higher. >> the world will keep turning, but -- >> he agreed it is the kundera -- canary in the coal mine. >> thanks for that interview.

the latest from the markets. >> we will see you on monday. ♪

x we are just moments away from the start of trading. our markets team has everything covered. director of goldman sachs joins us. we will be talking ukraine, china, and the jobs report. john, let's kick it off with you. >> exciting times.

140 9000 economists have been dead wrong on this number in the past couple months. they are blaming the weather. that does not excuse them for the big misses. i know it is a difficult job. low. very >> it certainly is, and it will decide what the markets do later this afternoon. let's get to david in hong kong. >> i think we have the first on thend defaults chinese markets. i will tell you later what that means. what it means for broader markets and what that does for re-pricing of risk in the chinese market. >> thank you so much. i look forward to that. you are watching the the eu's response to russia.