>> asian stocks fall as china's biggest export since 2009 and deflation highlight the thisenges in achieving year 7.5% growth target. securityia said measures need international standards. >> we have the latest. >> we are live from the conference in paris well we will speak exclusively with philadelphia fed president. he has been described as a pinup for entrepreneurs.

we dialon woodruff as into part six of our entrepreneurs series. >> welcome to "countdown." i am mark barton. >> i am anna edwards. it is 6:00. bloomberg reporters are standing by ready to deliver the stories that will drive your day. search for thehe missing malaysian airline flights. manus cranny is in paris at the global conference. >> david inglis has more on china hoss export -- china country as exports falling. hans nichols is in berlin looking at mobile and cloud and big data from the conference. .> stay with us this morning

city coming up. the conference in paris and we will be speaking exclusively to the philadelphia fed president. >> the search continues for the missing malaysian jets. fromt 370 was heading kuala lumpur to beijing. more. haslinda, what is the latest on the search efforts? mark, at a news conference, the aviation authorities of malaysia said nothing from flight 370 has been found and the oil from the oil slick was cover on the water of vietnam. it is being investigated and analyzed to see if it was indeed from the missing aircraft. 48 hours after all contest was 70, nothing yet and

nothing is known. that is adding to the frustration. and in the family. what we know is the search has been extended to 50 nautical miles. involves more than six nations including the philippines, thailand, china, and even the u.s. not even to the intelligence of the the the hardware. we are talking about ships, aircraft. nothing so far. asknow experts from nsaa ntsb, theying and are currently in kuala lumpur the capital to see how they can help with the investigations. >> passengers boarded the flight using stolen passports. what information do we have about this? well, -- >> well, 2 stolen

airport. one from an italian. one was stolen 1.5 years ago in thailand. currently, the investigation going on in balls not just the then the address -- and investigation going on involves not just the stolen passports to a terrorist attack. no indication for sure that it was. to pointo be careful out that it has yet to be proven it was a terrorist attack. interpol has, with a strong criticism and said malaysian airlines should have checked the names and passports i guess is a database. least indications that at one of the passports is on the missing or lost list that is included in its database. >> has led the, thank you. haslinda, thank you. >> we are at the conference

kicking off in paris. man is crazy is there. what did you expect the debate to be about? there.s cranny is it >> we have the risk of rising protectionism. that will be debated by the chief economist for wells fargo. face-off it is the between one central banker to a mother. withtine, who is our host, the president of the philadelphia said. mr. -- he will talk about bailouts. there's a whole section on japan. also, debating about growth in the united states of america. deflation or not as the case might be in europe and whether the emerging markets we have had

in the end of a cyclical moment in our time. some pretty tactical debates from a markets point of view. >> a lot to continue. manus cranny joins us. >> we got some key economic data from china's -- from asia's biggest economies. a recap. let's start with china. >> yeah, the biggest. good morning. china, three things. consumer price inflation. rising at its slowest pace in a year. two percent for february. reducing prices fell another 2%. now, we also had traded data for february. that has a lot of people talking here. we saw the largest drop in exports since the financial crisis. down 18%. in $23 billionce deficit. keep in mind, lunar new year,

first week of february, a big factor. in january, the surprised 10% surge in exports. we do have to wait until march to get the whole picture here. saying, doist are not put too much it to be set of numbers. >> and david, to japan. fourth-quarter growth data. which one is more important? the -- >> well of the gdp number was ms. forecasted. what is more important is the current account deficit. -- >> well the gdp number was misforecasted. from the days away sales tax that kicks in. he barked talking about momentum. they are hoping to get from exports, they hope it would at this point. it is actually fitting

ironically at this point. three years ago, we had the earthquake. the tsunami which forced japan to start importing a lot of its energy needs. a lot of oil. that has one with the trade weance into a deficit as know. the trade number as we know, a big part, which i just mention is at a record. $15.5 billion. quickly david, thank you. attention to ukraine. russian forces have advanced in crimea. with the latest is ryan chilcote. he returned from kiev. let-up about russia and how much power it has. effectively, the russians are looking to do two things. establish their supply lines. and in that area, it was of theng the crossing

straight. now that can bring pretty much anything they want into crimea from russia without any problems. the second is a that begun establishing the new border. people are talking about ukraine proper. proper meaning not crimea. there's just -- they are establishing checkpoints in between the two and link minefields. this are preparing for the referendum that will take place on sunday. it was like is a foregone conclusion it will happen. >> how close are we to gas line disruption? >> we are not there yet but it could happen. people are saying the next front will not involve troops at all. -- thaty, gas problems effectively we may cut your supply off, ukraine, if you do not pay your february bill and pay us the $2 billion.

the ceo also said, we could have a repeat of the situation in 2009. they did just that. that led to supply disruption in western europe. 2009 athat instance in another one in 2006 that prompted this turn of gas wars. that russia was using gas as a weapon. and so, is it likely? >> it is warmer this year. the other day is what is difference between 2009 at 2006, more of an abundance of gas in western europe. some of it cook off for western europe into the ukraine if russia was to cut the supply. that might be something for them to go through with the threat. >> a preview of what is still to come. let's go to hover knuckles in a berlin. you are watching -- and let's go over to hans nichols in a

berlin. >> we hadtching stuff opening remarks from david cameron and angela merkel. aboutre talking abolishing roaming season. you canrk where download a movie in a second. throughout more in 30 minutes. >> u.k. growth may exceed its prerecession peak earlier than expected.- that's according to our next guest. ♪

>> time for company news. germany's biggest builder is $1 billion to increase its holdings. ownership tose his 74%. it signals a may consider a full take over. a vodafone and said to have increase its takeover of the spanish cable company. people familiar with the matter said they raised their bid after meeting with key shareholders. wall street journal said analyst meet today to move ahead with

the plans for an ipo. meets withpresident investors and policymakers tomorrow for a bit in consolidation and the mobile phone market in the u.s. he is said to be considering a bid in t-mobile after a sprint yesterday. he will reframe his argument according to people familiar with the matter. welcome to "countdown." i am anna edwards. >> i am mark barton. recentlysh chamber published its forecast for the u.k. economy. joining us now is the bbc chief economist. he was responsible for preparing the forecast. thank you for joining us. you raise your forecast for growth for the u.k. to this year and next year. what is behind that? >> the recovery is a little bit

stronger than we thought. the economy is moving ahead. that is good news after a long time of a bad news. downward revisions. very is good news because soon all of the negative growth will be beefing up probably a quarter earlier than originally anticipated. >> indeed. what will be below? what you have to remember is we should have been much higher. it should've been up. where will we be next quarter if be asrecast is not, will deadly where we are. marginally higher. if the economy continues normally, we would have been putting percent higher. it is never good news. >> a bit of psychological difference. the implications are no greater than that. >> it is good news because we

are so much below and we are there again we are going up. the economy is growing. we have to make sure that the quantity of the recovery becomes stronger and bigger. emerging.y is the recovery is not a balanced enough yet. so far, too much reliance on a strong housing market and consumer spending. that is good news. we need more investment. happen,if it does not it could -- >> i read a piece of that was talked about young, unsung heroes being in the professional services market. maybe manufacturing or financial services, may not have lived up to expectations. where is the growth coming from? professional services does not seem like something increasingly playing a part in our global footprint. >> you are very right.

that is good news again. we have a services economy. manufacturing is very important. it is a small sector. only 10% of the economy. services among not just itfessional, but overall, is 80% to stop most of those were in services. if that is not just manufacturing but services inc. recently, making a contribution. business in general. it is an important factor. unlike manufacturing services, more diverse today. other rebalancing toward industries besides financial should be welcome, right? >> when i toggle bar rebalancing, not just so much manufacturing services -- when i talk about rebalancing, not just so much made vegan services but everything. so much manufacturing

services about everything. >> levels below what they were. >> about 2008, three or four years. it is going up. investment now, the economy today, it is approach it where it was in 2008. if you take investments, it is 15% lower. loss.ment has made a big the debt has made a big impact for productivity which is not as strong. it has made wages lower than they should be. investment is up to criticism. -- >>y david, we will cut the david we will continue. thoughts onith his the economy.

welcome back to "countdown." >> -- >> welcome back to "countdown." i am mark barton. >> i am anna edwards. david kern is here. -- proposal of the u.k. puzzle of the u.k. over the last few years. is it becoming less of a puzzle? >> i think it's a problem and not so much a puzzle. what is happening in the u.k. is , unemploymentturn

went up much more sharply in the u.s. than the u.k. the u.k. has engaged in labor holding. many people lost their job and stayed in. less butt we produce more people than otherwise would be the case would be employed. clearly, productivity was down. wages were down. in terms of visibility, it was a good thing. it is better to share the labor. it cannot go on forever. it is to increase productivity. , that wouldis right happen. but not fast enough. it happens pretty slowly. wages are going down in my forecast. but not very fast. in the meantime, inflation -- >> the wages are out raising inflation? >> it will be a boom.

>> the first time and how many years? that is what makes people feel wealthy are not. >> clearly. it is good inflation has calmed down. three years ago. now just under 2%. wages and earnings are going up by over 1%. there are other sorts of income. protection that is added to -- >> who would think it would be so significant? significant because consumer spending is an important factor which is good. we cannot rely on this administration. when he productivity and more investment and things will move in the right direction. >> would you expect in the bank of italy to do when it comes to what to do market -- you expect the bank of england to do when it comes to the

housing market? the moment, house prices are rising. i do not believe is a bauble. we may be approaching a bauble in some areas. in some areas. if they do not do it, i hope it will not raise interest rates. ip that would be a big mistake. that we use macro protection tools, which mean attacking areas in the housing market. like a bigger percentage of mortgages. it would cool the market. or furtherget bent to run? is ado not think it mistake but we have to watch the situation. i do not share the criticism about housing. that it was a bad call. u.k., the housing is at the core of the economy.

thes a political part of feel-good factor. like risingthey house prices. i do not think we would've had any economy with the housing market. >> when did we see young declinyment rising -- ing? what is the problem for young people? >> a very serious problem. youth unemployment last year was over one million. it is now 900,000 last night. it is much too high. the trend is going to the right direction. right, it will continue. this is the future. a critical situation. >> the data, thank you for joining us. david kern. >> the free brand. the data behind it.

♪

>> the bloomberg top headlines. recovery shift of the aircraft across the china sea. where it may have been spotted. missingn flight went after taking off late friday from kuala lumpur to beijing. some of those on board are believed to have been carrying stolen passports. the malaysian airlines have their records after declining as 80% in their stocks. face a gas increases. meanwhile, there have been clashes between pro-russian and

pro-ukrainian supporters in crimea. estimated ats is the 20000 and russian tv said armored vehicles is moving from the west to the east and the south closer to crimea. shanghai index has fallen to the lowest in weeks. lower export numbers. overseas shipments were down in february compared to the median estimate analysts. china also cut the car seat for cut the since -- currency for the most since 2010. >> welcome back to "countdown." i am anna edwards. >> i am mark barton. reporting earnings as we speak. the low-cost tele-, provider behind the free brand.

-- telecom provider behind the free brand. >> is toward a prize a war in this area in france. the lower end. some countries are three euros. it has been quite high for this country. to justice 5 million euros. a slight miss. -- 200 65 million euros, a slight miss. you see double digit growth. revenue is up to 3.7 billion euros. 2030.gs are up by 31% in they are delivering growth. of whatpany is part could be a spider web of deals and financial. quickly give us the news on the latest. >> is complex. s, part of this

network. that could go for price tag of 1.8 billion euros. boys want to get rid of it so they can get it through the deal. assets,hed some in the it is more likely to get past to a concern which is for competitors. you see the competition regulator this morning in an interview sending the boyd's allow simpler scrutiny. this could mean the deal gets in through a little easier. this one is complex. a spiderweb of deals. guestspoke to a telecom who said it will be a rise in the brand and marketplace. it is consolidation. >> a massive pricing war in this area. >> somebody else saying they should not be that important because iliad remains in the markets and they should not be shunted by the french are regulators. they should not give preferential treatment because

iliad still remains the low-cost operator. it is still a competitive marketplace. it does not remove the lowest competitor. earnings of over 40% by the end of the decade. a company with a bit. festival in journey is in full swing. hans nichols is covering the event. angela merkel and david cameron spoke. what do you -- what do they have to say? >>z and are the to cohost -- they are the to cohosts. combining british ingenuity with the german engineering. if you harmonize all of the different regulatory regimes, you can add data free mobile roaming across europe. here is how cameron put it. >> if germany and the u.k. agree to work together to improve the

telecom single market. of of the long-term ambition the european commission but want to take steps that deliver benefits to business and consumers quickly and including the complete elimination of mobile roaming charges. >> just some of the themes --theng at to be conference is big data. his remarks were more lengthy and tech specific than merkel was kind of the whole. he talked about the need for 5g, that means download a movie in about one second. i do not know if it's a short movie or a long movie, they have catching up to do. south korea is a couple years ahead. >> all of this about date ability, what is that? >> i thought it was a another german word. it is data and responsibility. that is what angela merkel

talked about. a responsibility corporation have to customers and protecting down. we have talked about that and this comes on the heels of potentially new revelations by wikileaks julian assange gave a interview to sxsw talk about new revelations about what the government is collecting on you. look for this to be a theme all week. the zone of privacy for individuals and consumers and what corporate responsibility is to protect the zone. >> thank you. china lessder of the us in on some of the secrets of his success. ♪

>> time for company news. unilever expense to open a plant in ethiopia. it wants to emulate its expansion into vietnam. the second biggest consumer might make cleaning services before moving into food. deb agreed to buy a 50% stake in the chinese e-commerce site.

a 15%y have agreed to buy stake and the chinese e-commerce site and they are seeking to build a competitor to alibaba. as clues of talks to sell part of its network and a spectrum. for a billion dollars for antitrust concerns. it is look to merge its phone assets. welcome back to "countdown." i am mark barton. >> i am anna edwards. about under per norse. -- entrepreneurs. he is good at creating new businesses like yo! sushi. i went aboard his houseboat to find out why he does not see the world as a war anymore. was --t big show i did [indiscernible]

i remember going to a dinner party one night. >> of the founder of yo! sushi, simon woodruff, learned about stage and andromeda or his days on the road. from his days on the road. >> would've a number in the pipeline and now. home is a radical take on what the home of the future will look like. >> i have seen you described as a pinup for under per norse. there's a heavy weight to carry. >> is very nice. >> have always had nice businesses. i started late and 45. i had money tied up. i was unemployed. i had nothing going. i had one restaurant and it was a success. i think that is very inspiring

to people. it is very inspiring to me. i pinch myself. at 16.school i never had the imagination of a 13 and 14 euros half. i do not have the education to have it with. -- doicting it holds true you think it holds true? certainly, i employ people and i am looking for passion and a realasm and nitty-gritty street sense rather than a big business degree. as i have gotten older, i've had that sense of identity with a much better they you. my way is a better way. myt was beautiful times in life. fortunately, as i've gotten older, i was suffering from delusions. and i made the realization when i moved to the next stage of my life which is to let other people to do things their way

off and my way. >> is that part of being aces -- is that part of being a successful entrepreneur? form soon as you get some of success is being able to let go and get on with business. funny things happen when you that success. both of success and recognition. i remember making the first few millions and thinking, wow, this is great. within a few months, it was not enough. the demand i have. it was not enough was done i compared myself to have a more. i thought it was a form of madness. i said what my experience it was. sending yourong on do not want it that way. is why you cannot write an entrepreneur book on how this is done.

>> simon enjoy some of the trappings of success. what message does he have for new entrepreneurs? business iscess in the person getting themselves and the right place. the kind of get anything done. we have a knock back, you can keep going. >> simon woodruff there. we are joined by another entrepreneur to stop this one is -- entrepreneur. -- this one is talking italian food. thank you for coming in. tell us your story. how do you, with your idea? >> me and my business partner work in the city at jobs we loved but we knew we wanted to something for ourselves and create our own business and our passion for food and cooking. i knew we will go into the food . in 2009, we looked at quick service food markets and realize that there was no quality

italian food and coffee offering in this city. we set about creating coco di ma ma. the great deal of professionalism and spreadsheets or is it -- [laughter] is there room for more creativity? it isst and foremost, creativity. going into the space we are, if you do not have passion, you will not succeed. background is in the city. the art of detail on which woodruff was referring to earlier. that is helped. >> what is distinctive about the brand? thery competitive part of markets. the food service based on market in london. you are based in the city. what is distinctive? how do you make it to be distinctive and this cutthroat and competitive part in the market? >> you are right.

it is the offering. the italian offering. yes sandwiches and soups and mexican, but we all love pasta and italian food and there is nothing like it at the moment. secondly, we like to believe is the way we treat our customers. the experience. we are obsessive. because we are so small, we look at every customer every single day. how they have the best expressed possible. beginning, you need to be slow and careful and delivered about what you are doing. if you are too big too quickly, you can miss some of the important things. >> how quickly you grow. is it about your attitude to risk? you can, would this is plans to have -- you can come up with business plans that have different aspects? >> your at it to an aspect for risk is important.

and focusing on what you have. for risk isttitude important. and focusing on what you have. to give you the platform to push on. but how did you find funding? >> it is very interesting. we started in 2011. in the midst of economic hard times in a london and beyond. one of our concerns were are we going far enough? myself and my partner put up a bit of the money. we went looking for people in the industry who knew about the industry. who would support us. we found people to be extremely andusiastic for our bid raising the money. >> among dear shareholder is rhoad road -- is stuart des, how hard was it to get hit him aboard?

>> it is amazing. his experience is invaluable. we meet with the regularly. he comes a regularly and have a bowl of pasta and gives us advice. he was very open to it. markets spencer. we knocked on his door and said we are young british osborne doors with an idea. what do you think -- young british entrepreneurs with an idea. what do you think? >> and he was open to it. >> he wants to listen about our ideals. he is extremely keen on british entrepreneurs and driving the economy. simon wase stories telling me about it how important that entrepreneurs the their jead -- heads in right place and getting back up when you get knocked it down. is oneaving resiliency

of the key things that will dictate whether you survive in this market? >> i completely agree. it is a reality that you do that your knocks. you go through peaks and troughs. you need to be tough. the other thing i would say is, in our space to do it alone is pretty tough. to have a partner like i have, you kind of match each other and push forward. quickly you are partners with your childhood friend. how is a work with a friend you know for so long? >> would've been best friends for 30 years. this a new stage in our friendship. we know each other very well. other's strengths and weaknesses and to understand how does. >> jeremy sanders, cofounder of coco di mama. >> 20 k customers a week.

>> a very good. >> a back story. >> newspapers are coming up next. a little bit of rugby i am sure. stay with us. ♪

>> welcome back to "countdown." i am anna edwards. >> i am mark barton.

newspapers are back. >> will start with the weather. it was very nice here in the u k. it is just a picture. >> it is you on the boat. >> is not me. millionture tells a things. >> very nice. it was really wet. >> i'm sure retailers will be pleased. a sigh of relief. per-g at theu paralympics. britain's first ever paralympics gold. she is legally blind. she had to have a guide. she is an incredible athlete. she's had this debilitating eye disease, is hereditary.

she is hereditary. should the losing her sight for the past 15, 20 years. kelly gallagher. ist i think hans nichols joining us from berlin. where we take us in the papers? >> the front page. percent of german jobs are occupied by females was up a brazen attempt to create a favor with you. 15 awful wonder 50. ambassadors are female. one of the lowest rates. 50 ambassadors 1 are female. it is still a male-dominated. more calls for it to change. anna, am i in your current graces? >> well done. i will pick up on your men versus women theme and take a more animal.. direction.

wrong about the birds and the bees according to new research. charles darwin, female birds sing, too. not all about the boys. it is not all about mating. females think they are likely to great complex melodies. this is new research. about mating but defensive nest sites and resources and something that female birds do, too. >> who would've thunk it? of rugbywas a game yesterday. i previewed it. as an englishman, i was happy. which beat -- england beat wales. it was yes -- it was last year that wales thrashed england. the triple crown trophy. team away youles

been to scotland and ireland and wells, you win the triple crown. won not w -- we have not the six nation title. england plays italy. england has a chance to win. great again. --how long is the term it? tournament? >> one more week. you have the most weekends. it is about over six-eight weeks. so happy. [laughter] >> it made your weekend. the combination of rugby and the weather. you said that. "countdown" continues. wealth and exciting -- we have been exciting, exclusive interview with the president of the philadelphia fed.

that is coming up exclusively in the next hour of "countdown." ♪

>> asian stocks falling. deflation highlights the year'sges hitting this growth target. >> malaysia says security measures at kuala lumpur international airport do meet international standards. we have the latest live from the malaysian capital. the independent center in paris.

hello, welcome to "countdown." >> it has just gone 7:00. a warm welcome to the program. bloomberg reporters are ready to deliver the stories that will drive your dave. live with the latest on the search for the missing malaysian flight. >> the global interdependence conference kicks off, and we focus on ukraine as russian forces embark in crimea. >> live from the conference in paris, we are going to be speaking exclusively with the philadelphia fed president. manus cranny will be bringing us that interview within the hour. >> asian stocks lower. joining us is jonathan ferro. it was a surprise, wasn't it? >> it was a big surprise. it was a massive ms..

-18.1%. a lot of people are talking about this being quite a cloudy number because of the lunar new year celebrations. of 2013. in january this year they were in mostly february. i think it's like blaming the weather. you know it matters, but you don't know how much. we knew the lunar new year happen. it's not an excuse for such a massive ms.. 30 out of 45 college avenue miss. >> it seems to be weighing on sentiment in equity markets, doesn't it? we are seeing equity markets weighing lower. some are saying we might see more ipos, and that could be one reason investors are more nervous as well. >> maybe. it's copper as well.

we saw copper down as well on the back of that default. this is one country that accounts for 20% of global demand of copper. there is concern it will play out in a weaker price. the aussie dollar weaker again today. i think there will be more concerns over the potential for more loans to go back. people are asking where is the risk and where is the overcapacity. if it's in manufacturing you are going to see it get hit. >> the csi has dropped to the lowest since 2009. >> the search continues for the thatng malaysian flight disappeared on saturday. it was heading from kuala lumpur to beijing when it disappeared. let's go to kuala lumpur for more. what is the latest on the search efforts?

>> nothing has been uncovered. at a news conference three hours ago the civil aviation authority of malaysia said nothing from the jet that went missing has been found. also samples of the oil slick's are being investigated to see if it was from it. it has been a frustrating 48 hours. nothing has been found. uncovered. been it has been expanded to include 50 not ago miles versus 20 not the cold miles. it has also included more than six nations in the search, including indonesia, thailand, singapore, china, even the u.s., and they are contributing not just intelligence but hardware like aircraft and ships. worth noting is some discrepancy. initially it was said the plane lost contact two and a half hours after takeoff. more recent reports indicate it

was just an hour after takeoff. crucial because it shows precisely where the plane lost it was vietnamr or in malaysia. at this point in time we know at additional help is coming from the faa as well as experts from boeing. they are currently in malaysia to help do the investigation. two passengers aborted -- boarded the flight using stolen passports. what is the latest information we have about this? frome stolen passports are an italian and austrian. those passports were lost in thailand about one and a half years ago. it raises speculation this could have been a terrorist attack, but having said this, we have to be careful to point out currently there are no indications it was a terrorist attack. it's not just to passports being

investigated. as far as we know at least for -- interpol has come up with a strong criticism. it's as malaysian authorities should have done proper checks against its database. it would have shown at least one or two of the transports are lost. this could have saved them some sort of trouble. >> thank you. >> 706 in london. the global conference is kicking off. what do you expect the debates to be about today, besides the one you are in? >> thanks for that, mark. when it gets to japan we will get a little more focused. i think there is going to be a healthy debate. there were some pretty big newsmakers and thinkers. globalnd the rise of protection, but there is also

the reality of the debate. u.s. growth, will it make three and a half percent? where are we in the cyclical turn? we come to sometimes conferences. those are big issues. we have the chief economist from wells fargo. they are on the first issue. we are going to be discussing bailing in. they will discuss bailing in in banking. going to be quite a fascinating debate. and monsoon were -- monsieur christian is hosting today. >> and roughly 30 minutes time i look forward to that. >> seven minutes past seven here in london. let's turn our attention to ukraine. russian forces have advanced on

the crimean peninsula. ryan has just returned from kiev. give us an update on what are russia's movements. >> there are effectively consolidating control. they are doing two things. one is establishing their supply lines. in the case of crimea that means .ontrolling the ferry crossing if a foreign a half kilometer wide crossing to russia proper. that means they can bring whatever they want into crimea. the second thing is they are establishing their front if you will. they have built a border between ukraine proper and ukraine crimea that established checkpoints, and they have established minefields to keep people out. abouts. says russia sent

20,000 troops. they are getting ready for this referendum. it looks like it's going to happen. there are talks going on, but i don't think there's a lot meaningful to report. >> what about gas supply disruption. do we have anything meaningful to report? >> there could be a disruption. this comes because the next front might not invite -- involve troops at all. from effectively threatened if they did not pay their bill for february, they could be cut off. the ceo saying it's possible we could see a repeat of 2009. that's when they did just that. it was 2009-2006 that led them to accuse russia of using gas as a weapon. that is what we saw disruptions in western europe because ukraine is a transit point. it's warmer so there's not as much of a need for gas.

there is an abundance of gas in western europe and in general lackluster economic activity in western europe has helped. that means there is gas in the reserves and gas could be pumped from the west, even if its original source rose russia -- was russia. -- toppingexports in 2009. we will look at the challenges ahead for the country next.

>> time for today's company news. --many's biggest oler is off builder is offering $1 billion in lay-ins.it stake -- leighton. they would also consider a full takeover. people say vodafone raised its bid to 7 billion euros at a meeting with key shareholders last week. the wall street journal said shareholders meet today to move ahead with plans for an ipo. soft rank -- softbank's son

meets. people familiar with the matter say he will refrain his arguments to advocate for an ultrafast broadband network. back.e i am mark barton. >> the time in london is 14 minutes past seven. where the to france gic joint conference is taking place. manus cranny is standing by for us. by michaelned drewry. he is the chief economist at make aim. he is also the chair of the gic. we will start with markets. great to have you with me. i am looking forward to the debate. let's talk about your specialty. we have a little data out of china.

exports under pressure. inflation dropping. what do you think? week isxport data being critical in two senses. it tells you their economy is slowing down. given markettly, shares, it means the world economy is low. you have traveled extensively over the past years. you were talking through the changes. what is your impression of what you are hearing about the political changes and the impact on the economic situation? >> the new leadership is much more about the party first rather than it is good to be rich. going on.two things one is to bring the power back to the center by moving to the top, and they are moving power away from the traditional players down to reform. it's a good dollars see.

whether it works is the question. >> seven and a half percent, a lot of you are saying they are going to make that number anyway. and just have that number, they say, yes, they believe it. do you believe it? >> the thing about china is no one believes the numbers because everyone made up those numbers before they got promoted. the real issue is propaganda and how you selling it to the public. right now seven and a half is as low as they can go. at maybeeing them seven percent within the range. i think everyone is pretty clear they are going to slow to five percent over the next three or four years. >> talk to me about currency. i think it was a pretty big move overnight. it? do you make of >> the argument is the fact they wanted to drive out speculators. we don't believe that.

we think the yuan is the best indicator of the confidence. when it backs down like it did in 2012, we think the emerging markets are slowing down and that is hitting export markets, and this is part of the reaction. >> do you think we will get another big move? is that on the cards, or are we being slightly ignorant at the moment? >> the devaluations make it much more expensive for them to get money. in makes it much more expensive for them to buy oil or other commodities. there is real pressure on the emerging markets right now. that has a feedback through the european banks. >> take me through quick thinking there. >> european banks are the biggest lenders in that environment. if there are default they are going to start to appear in asia. it's going to show up in europe. >> you are the master of ceremonies. what can we look forward to?

>> it's going to be a great day. are getting the international ramifications of changes to monetary policy. some strong opinions will be voiced here today, and i think it will be interesting and worth the debate. >> thanks for having us. programa pretty packed schedule today. it's going to be really getting into the debate of mullet -- monetary policy and getting back to protectionism. back to you in the studio. we will have a little later the chair of the ubs, so a pretty packed show. i am now an expert on japan. >> manus cranny live from paris. >> the time in london is seven: 18.

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>> welcome back. time for hotshots. people in rio de janeiro

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international correspondent is monitoring the event. angela merkel and david cameron have spoken. what did they have to say? >> david cameron is finally making a decision on europe. when it comes to mobile data he is envisioning a more closely european integrated community -- don't don't pain pay roaming fees. >> germany and the u.k. have agreed to work together to improve the market. we welcome the long-term commitment of the european commission, but we want to take steps to benefit businesses completely, including the mobilee renovation of charges. >> the prime minister also announced a grant for the internet of things. he also talked about the importance of a five g network where you could download a movie in about a second time.

angela merkel focused more on the privacy side of things, talking about the responsibility corporations have to consumers to protect and safeguard individual data. plan tous about the make the merkel failed -- merkel phone available for the public at large. lot. have talked to them a they basically modify a blackberry. they are going to sell that mass-market. the had a contract with german government for about 2000 phones. now they want to make it available to everyone. tag, buthefty price vodafone may be offering a monthly contract in germany for around 10 euros a month. secure have conversations as long as you call another customer. security,ultimate in but it's pretty pricey.

>> inks. >> up next, let's talk a little bit about china. we have numbers that disappointed, and that's something you need to be aware of is we are half an hour from the start of european trade. numbers coming way below expectations. were expectings an increase. in fact it came in with a decrease of 18%. >> the question is what distortions there were from the lunar new year holiday. investors are looking for policy guidance from the national people's congress taking place in beijing right now in its second week. to have thedecided growth target of 7.5%. >> keeping the same growth target they had last year. the fact there has been a change of emphasis from the chinese government. they are not about roads at any

cost. they are valuing environmental concerns as well. to ask howave some they were going to achieve all these targets simultaneously. >> this data as to the debate. can they achieve that target, and the stark -- the stock market reflects those concerns because they are pledging to the lowest level in five years. >> for miller one kicks off in australia. we will show you how they are keeping the speed up and the costs down.

>> these are the top headlines. the shanghai index fell to lowest in weeks. unexpectedly weak export numbers. estimate hadalyst analysts cutting the most since 2012. certain parts of the south china sea for fragments of an aircraft that may have been spotted of the malaysian airline that went missing on friday night on a flight to beijing. aboard arese

believed to have been carrying stolen passports. stocks declined 18%. price paidse in the for russian natural gas. meanwhile, clashes between program -- pro-russian and pro-ukrainian supporters and crimea. -- in crimea. vehicles are moving from the west to east and closer to the ukraine. hello and welcome to countdown. >> it is 7:31. income missed

estimates. the numbers with say. the net income was 255 million euros. that leads you in the wrong direction because there were strong numbers this morning on the revenue side. revenue is at 3.7 billion euros for tax earnings appreciate his asian -- shows pretty good numbers and they continue to achieve growth. this company was coming out and starting a price war in 2012. they are very competitive in this area. >> consolidation is a theme in the french market. this is thee and one that started all of this. forrove the need consolidation. >> to try to get the margins back and what we see right now

is a spider web. we are seeing part of the network being sold. there are great opportunities for expansion and that would not meet price rising. they need to shift assets so they can get through for vivendi. hopefully, you. the regulatory concerns. is simpler fort regulatory scrutiny and you can see why they are doing it. theiry are trying to get hands on that. >> a lot of competition. >> on the move starts and francine has a preview. futures for the market are on the way down. let's have a look. futures are losing.

reports are the that the chinese exports slumped and we have the first weekly loss. >> john is talking to us. a lot is happening. >> and in general. absolutely. openpected to move at the and the mobilephone assets. we have pricing on vodafone. we understand, from people familiar with the story, that it will be between 7 billion euros. we will watch. i like this story that came out overnight. it is in the london financial services that rose 11% last month with temporary workers. we will look at the implications of that. >> that is in 25 minutes.

>> the season starts in australia and new cars and new drivers this week. position withu in a look inside. spending to get to the front of the grid. they are finding innovative ways to keep the speed up and the cost down. >> it is about being very quick. it is accelerating. to 18 of over 350 people. here in the based motorsport valley. the man in charge of the start creative and got the team to the start line. performers at the

lowest possible cost. business, we need to find the right supplier and partnerships. value and we try to get technology. if you look at measurement onerol, the true formula that is coming into our factory is what we're doing. --inting and in 2005 technology that gives them rapid development.

is willingartup that to -- >> stay tuned this week for more. that is the 2014 formula one this week and we kick off in australia. >> we speak with the philadelphia fed president live from the conference in paste -- in paris. do not miss it.

>> welcome back. >> it is 7:40. let's go back to the global interdependence center conference and manus cranny is joined by the federal reserve president of philadelphia. indeed. you very much i am joined today and let's get to the big issues on bloomberg. >> great to be here. >> it is going to be a good day, i hope. let us talk about the numbers. the numbers are good and some

revisions came through. does it impact policy? >> i do not like to look at one thing because it can be misleading on month-to-month. thatonth-to-month number came out was better than what people anticipated and i think that it is encouraging, given the previous two or week. -- were week. >> i know that you would like to go faster. is there a case for going faster? >> i think you can make a case that it would be nice if we had started at a faster pace. given the fact that we embark on this measure, it is important to give some certainty or clarity to the markets about what we are doing. that is why i believe it is ok to continue and the hurdle for changing is high in either

direction. asthe average earnings rose, well. are you happy with the data? >> the data is encouraging and we had low wage growth over the last several years. it is encouraging and is coming back a bit. wage growth is not a precursor to inflation. it is a lagging indicator. it is inflation that comes first and a catches up. if we keep looking for signs of inflation, it is too late and it is built into the new wages and contracts. >> what are the better indicators? if that is not a good indicator for you, what are for you? >> i look at things like money growth and expectations of inflation's.

s. there is a wide range of things and there is no easy bullets. i wish there was. it would make things easier. >> let's talk about guidance. youhas linked to say and have guidance policy and communication policy. what are you lobbying for. there is a great debate about having qualitative guidance. >> for me, we have to be humble about how much we can indicate how we will behave in the future and because things change and people change their minds and things happen, i'd like to see us begin to move towards a description of our reaction function or rules that we can qualitatively about how we can go forward. that is the best we can do with information in the markets and it will be informative.

>> is there consensus towards the? -- that? >> that is a much harder question. i think that there are many of my colleagues who talk about qualitative guidance and things like reaction functions. i think if we can move in the direction, that's a good step forward. this is not a place where you and. is a journey and you are always refining your communications to improve them. this is a process that will last for a while. >> interest rate hikes. we have to go to this taper, first of all. reserve looksral at the playing field again. is there a case that if we see a significant off left -- uplift

of growth that we go through interest rate hikes faster? >> circumstances can change and we have to react to the economy. we have to be particular about how we react and i think that we end to stop tapering and adsset purchases. it would be silly to end purchasing and raise interest rates. we have to end first. we will discuss the circumstances under which we would discuss rates going up. >> you made a speech in london. what i want to know is can we expect to get back. this is something you have mentioned. what were you thinking? >> we are growing at 2.5% year and some people said between two

percent-2.5% that is our long-term growth rate. many people were expecting us to grow faster than that and catch up. some wanted us to get back up to a new level. i do not think that is in the cards. we had to except the fact that we had a traumatic experience and we took a big hit to the economy. we will grow at the steady-state and we are doing that right now. forecasted three percent, four percent, five percent growth rates. we are in an economy where growth rates are going to be 2.5%. is tough to2.5%, it get higher than that and what does that do for a new normal?

where can we expect the new normal with rates? >> you look at the for the recession and growth rates were higher. we are not that much below. if you believe that is the long , it has implications for interest rates over the longer term as to what they look like and they may be a bit lower. not substantially. you used the word, "tad." could limited enter your vocabulary with guidance? it could be limited or gradual? >> it is a step towards replacing forward guidance with

what to expect from banks in the future and i would prefer to see us talk about the conditions in the economy that would lead us morelieve -- behave in a limited or gradual way. what does the economy look like? that's what i would like us to go. it is a slower economy, probably inflation,be slower or inflation not coming back. it would look a little different and it may look similar to what we are expecting. i would rather talk about the economy or time. >> is hard to see bubbles. your colleagues says that the ghost of a rational exuberance is coming back. do you see financial bubbles? of a rationalst

exuberance -- ir rational exuberance? >> we should be aware of the unintended consequences of monetary policy around the world. we have initiated programs and policies that we have never tried before and we have to be cautious in thinking about the risk that policies engender and worry about those to make sure that they do not get out of line and overtake the economy in a negative way. >> you will take the platform with -- would that be your message to him? be aware of the peril? >> i know better than to give him advice or any other central

banker advice, for that matter. we all have our challenges in every country's outlook is different. he will have his own views about europe and i will express my views about the united states. people can infer what they will from that. >> thank you for joining us today and i look forward to listening to you later at the conference. >> there you go. that is the extension of the voting member of the sm -- fmo c. move the debate away from the numbers. i will hand it back to you and --er on, our host is we'll have him. i will see you guys later. >> thank you. manus talking to the president

of the federal reserve in philadelphia. >> 10 minutes to go until the start of equity trading session. the equity trading session in europe. we will talk more about that interview.

>> welcome back.

>> the time is 7:53 and we are joined with a look on some of the top themes. >> the great exchange between the two of them and i have headlines for you. the hurdle for change is high and he is talking about increasing qualitative easing. let's -- >> you want to start earlier. ande wanted to increase it it made to stabilize the markets of that. asset purchases must stop before rate increase starts and i do not think that makes him a dove. that means that qualitative he -- quantitative easing with and towards the end of this year -- would end towards the end of this year. >> there is plenty being written and said.

there is value or lack thereof. this is his thought and he says they need to be humble about guidance and about what we can know about what -- where we are heading. >> he called communication a journey. >> always trying to improve. >> he would not go near the bubble conversation. and he said that we must be aware of loose policy. >> richard fisher is the dallas fed president. suck about the china export data. >> however you charted up, this iss. massive m you can blame the lunar new year and we knew that would happen. >> economist factor into their estimates. why are we backtracking?

>> no forecast. >> the equities could weigh on the stock of european equity trade that kicks off in a few minutes time.

>> welcome. we are in bloomberg european headquarters in london and moments away from the start of european trading. has everythingm covered from companies and currencies. andill be in paris shortly with any newsn and exclusive interviews. how are the markets pointing? missing chinese exports.

-18.1%. put it on, it you takes the markets lower. >> for the moments, the european stocks opened lower. you have the latest from the ukraine. >> consolidating control and one of the things to look at his core. the ukraine is a large exporter of corn. people are piling into foreign because there are supply concerns. think that maybe farmers will want to hold onto their corn as a hedge against the following currency and other people say that they need cash and they are selling the corn right now. you see the price of