and bar them from traveling to the european union. do not think the eu ministers will target members of the russian business community, as many speculated and we cannot see any appetite to impose economic sanctions on russia. there are five conversations that i had with four ministers and the goal is to sway present prudent from going further. >> thank you so much. you are following the market reaction. >> futures are higher in europe. you had the selloff and you knew crimea would go this way and join russia. when or will russia annexed the region? how does the u.s. retaliated with sanctions? that is based -- that is the key

question and it will come this week. >> 1.2%. a lot of futures are higher. give us the corporate stories. vodafone is a big one. >> 2 billion euros. aboutw that it is all data. useave skype and we do mobile companies. we will use vodafone on a tablet and smart tv. >> they will open in a couple of minutes. we are continuing to monitor the search for the missing malaysia airlines flight. investigations from 25 different countries and we will bring you information. dallas four ministers in

-- foreign ministers today. the want to get a look at equity markets. that is what you have on the ftse 100. the cac 40 is higher. the reality check is that we have a selloff last week that races all of the gains this year. the s&p 500 and the u.s. is lower. the way wevotes thought it would. will russia annexed the region and will we get far-reaching consequences? it is likely to be asset freeze sincs. the ruble is at record lows. it is against the dollar and the euro.

willompany with revenue eat away at that revenue. one more for you. the euro dollar drops below 139. of euro zoneng inflation data. it will be concerned -- around 0.8%. what will they do about it? not a lot right now. >> they try to do things in the past. jonathan ferro there. it is great to have you on the program bob. we have a situation with the crimea and we still have not heard from russia about what they are about to do. what does that mean for a portfolio strategist?

>> let's look at the reactions. we have seen pressure on the ruble and it looks like it is stabilizing. interestingly, there are a number of statements and rumors that they may be selling dollars. why was the euro so strong over the last two weeks? theof the factors could be sovereign wealth fund in russia. it is actually switching out dollars into euros. the second market reaction has .een the year to date decline we have a technical bounce this morning and russian equities are down 16%. >> we knew it was going to be this. >> the interesting question is what is going on in the banking market.

the russian sovereign wealth fund has significant assets and russian corporations have long to the- large debts banking system. russian banks and western banks. there are nervousness about loans and the repayments of them under sanctions. that it is thes cheapest market in the world and the price to earnings ratio is close. bankinglem with suggests it is difficult to see a sustained rally. sanctions arehat happily put on russia and russia be wary of would you

investing in the ftse right now? we do not know the impact that it could have. >> there is going to be a clearly negative impact. frustratedup getting with the geopolitics and we may end up with a situation where, as we have seen today, there is not much commentary out of russia. it may end up being difficult to analyze because little is going on. >> for me, that means they should be cautious. markets, is itin a good time to take risks with mark -- risks? there are all sorts of factors at the moment. are the chinese resolving the issue of the shadow banking and will we see an improvement in u.s. data after the week data of

december and january? i think we will. will we see a improvement? it was not for the problems in crimea, weing and would have a different .onversation given those uncertainty, it is hard to stand back until we get clarity on the issues. >> thank u so much. credit suisse asset management. we will be talking about that. here is what is coming up. the crimea votes to leave the ukraine. the big get bigger. vodafone shells out in the latest telecom megadeal and the context of avoiding a real-life armageddon. here. we are on the move. we are just getting started.

back.come in london, this is "on the move."

phone streaming on your and tablet and on bloomberg.com. we had comments from the chancellor, ahead of the budget unveiling. you can see housing and he talks the stimulus in the budget this week. biggestsee some the construction companies in the u.k. gaining. crimea voted to secede from the ukraine on sunday. governments denounce the vote as illegal. there is a discussion of sanctions against russia. ryan chilcote is on the ground. we expect the sanctions from ministers. they are leaving in 1.5 hours from now. now, fourtes from ministers are expected to gather to freeze the access of the

number of russian officials and ban them from travel in the ee you -- european union. a number of ministers have met this morning and they are called the "friends of ukraine." it is chaired by the ukrainian foreign minister. he is not part of the european union but is here to lobby the ministers to be tough on russia. there does not appear to be unanimity, as some had speculated, to go against the russian business committee. that was discussed with the ukraine foreign minister. >> the sanctions that the european union will impose tough but we strongly believe that we have to go after business leaders. we are very interested in not

affecting the rush of people who oppose the war. ofwe point out that a number polls in russia show that a vast majority of russians support the intervention in the ukraine so far. dissuade vladimir putin from annexing crimea. they asked the russian president to do just that. >> ryan, where does this leave the ukraine? >> it is an interesting picture. you have crimea, after this vote, happening the way people with russianuld, forces advancing beyond crimea and into the ukrainian mainland

into a different region. andhose troops stay there the number of russian forces or their were to increase presence, you could see an increase of sanctions. the four ministers i spoke with this morning said that they will ratchet up the rhetoric and sanctions, should they see russia moving militarily into the west of the ukraine. >> thank you so much. ryan chilcote is on the ground at the european union foreign minister's meeting. head of thes is the strategic advisory group at credit suisse. we talked extensively about the you thinkd how investors should be cautious. until we understand the .anctions and russia's position

you mentioned china. they slid 0.5%. china is another big worry. >> yes. there are a number of factors. investment positions have been very underweight and out of the chinese equity market. it is a contrast to investor positions. it has been that the chinese renminbi is a one-way bet and it is fair to say that the people's bank of china, when the currency 605, 618, 619, they wanted to protest the one-way bet on the renminbi. they have achieved that and, as a result, we have seen a clearance of loan positions. that has pushed us back.

the chinese authorities are much more comfortable now because of a weaker renminbi. the strength of the renminbi was strange impact growth and investment in china. pictures ining live brussels of william hague, saying that sanctions need to be discussed. william hague hopes that andtions involve crimean russian names. it is difficult to say if you're more worried about china or crimea. we do not know what we're dealing with at the moment. >> the answer is that it is a concern for global investors at the moment and it is quite interesting. there has been a foreign exit from russian equity markets and foreign ownership and domestic ownership of chinese markets. the shanghai composite is that

low levels. four.vels are around we are at the lowest price earnings ratio that we have been that for over five years. >> keep it right there. we will get the corporate story with -- ch a deal caroline hyde has the latest. they are away from nacchio. -- an ipo. >> they can get more bang for the buck and money up front if they go into vodafone. vodafone will be spending on the spanish cable asset. earnings 7.5 times the . there are a lot of cost benefits from this deal and the spanish

to the gets scaled competition from telefonica. but why would they want to buy assets from spain? >> it is a questionable one. skinow that vodafone has in the game and nine percent of the revenue coming from the country. they want scale and they want to get in the home. they provide internet by mobile. we are not calling so much through our mobile providers. we use skype and other applications. companies are happy to go for data. internet --ts us internet- axis and the in our home. this is what they can provide. homes to some .2 million

homes.million they can scale of the sales by offering mobile revisions -- provisions. >> the human lives on vodafone. stay with us. sector, of the telecom we're seeing so many mergers and acquisitions. it is a flurry of activity. you are not keen on them, in general. >> companies know what they are. >> they know what they are trying to be. >> there is a lot of work to be done by the investment industry on re-categorizing companies by sector because the old categorization had the mobile and i.t. company. one.all now morphs into vodafone is classified as a

telecom company and is that morphing into a cable company? yes. it company, arguably. >> that would make them more attractive. >> yes. it is an interesting investment scene. there are companies that are in the process of reinventing themselves and moving out of their base. if a company stays as a mobile company, they have a problem. if they have a strategic change and become more bernanke company or cable company, there is an interest and an upside. ago, heple of weeks said that they were in i.t. company and valuations are higher. right. i think one has to be skeptical

of classifying fedex as an i.t. company. track the movement of parcels. if one gets back to basics, it is stretching the imagination to say the parcel movement company is an i.t. company. >> all companies crossed the border and the content provider. ofit is an example reinventing itself and it has moved from what was the old utility company into what is now a media content company. the market has responded to that positively. when you say that you do not like it, the market does. >> bob parker. the head of strategic advisory at credit suisse. and what, alibaba

could be a record-setting ipo. that is next. ♪

>> welcome back. when the things that we are watching is ali baba. u.s. over hongn kong. let's go to hans nichols.

hans, they are not listing in hong kong because of hurdles. yes, it is hard to have the government structure they wanted and still be in hong kong. they try to work it out and could not come to an agreement. a clear loss for hong kong and new york is the big winner. will it be ons, the nasdaq or the new york stock exchange? facebook what with the nasdaq and they had pickups. they will do numbers and it is expected to raise 12.9. compare that to facebook and 16 billion. when you look at the may beization, ali baba as high as 200 billion. at 172. is

one final comparison is the fourth quarter revenue. ali baba is that 1.78. ebay is that 4.5 and facebook is --t to see be interesting what numbers they present. income will be strong. >> what about the banks? they are all like equal dogs and they are going to give them the same amount. no single bank will be the lead underwriter and that means lower fees. good for ali baba and less good for the banks. >> hans, think you so much. we will go to haunts for any update in ali baba today. and thep, share sales

ipo. we will tell you how much the shoemaker is work, coming up. i will see you in just a couple minutes.

>> welcome back. i'm francine in the bloomberg european headquarters. this is how things are shaping up. we are seeing quite a lot of gains. everything is gaining. the ftse is gaining and it is a similar measure for the dax. the ibex is gaining. there is a drop in equities and this may be a bit of a buying opportunity on the back of a

correction. this is the crimea vote to secede from the ukraine. this was widely talked about and there was no surprise there. we are waiting from sanctions -- for sanctions and we're waiting to see how russia response. we have to keep an eye on the currency. budget in thethat u.k. on wednesday. these are the bloomberg top headlines. there are plans to boost instructions -- construction budgets. was told that they will extend the buying program. avoid -- tos to afford your own home. we have help people into homes and build new homes. i want to extend the scheme for new rebuild houses and we will

send it for a decade. it will be 120,000 new homes. >> will bring you the budget 12s wednesday from half past :00. appeala is building its and has asked 25 countries to support the mission. officials are criticizing the lastafter they established controlwith air traffic seven hours later. inday's referendum vote crimea had over 90% of voters backing the referendum. the ukraine government said that the vote was illegal.

let's stay on the ukraine and go to jonathan ferro. you're watching the market reaction to the latest. >> or, the lack thereof. it is muted. crimea went the way we expected it would. two elements remain now and will russia annexed the region? retaliate?e eu russian equities might be a touch higher. 70%.e year, they are down for the500 is down first three months of the year and political risk has been a key feature on the move in the last month. stocks --just russian it is not just russian stocks. >> the russian currency is down to get it whole range of currencies and those moves will

hurt european companies. any european company with a large slice of revenue will get less and less. how this escalates remains to be seen. sanction talks are not focused on energy. there is a $160 billion reason for that. that is how many crude exports come out of russia. has a fragile recovery and the last thing they need is an energy crisis and a spike in energy costs. here in europe, they sit down and talk about sanctions. >> jonathan ferro is here with the latest on the markets. we have more on what the crimea vote means for markets. it is great to have you on the program. thank you for coming. talking about the markets. complacenceabout

and a lot of it has been priced in. we do not know what russia will do and we do not know with the sanctions will look like. what's it is an interesting picture and there are significant headline risks. we need to watch what they are going to be. at the same time, global markets have broadly dismissed this ukrainian crisis and that is the irony here. areuld say that the markets much less significant than a couple of years ago. this iseach markets say not a crisis. >> there is a sense that this is being contained. if you look at the currency, the ruble and others, that picture is not great. >> is a contained crisis and is highly geographical. , it has massive

-- it is a massive crisis. the central bank is intervening in the markets. it is well established and could go much lower. >> you are telling investors that they should stay away from russia. at the moment, we do not know the consequences. this is a weakened economy that may become much more week, depending on sanctions. you will feel the repercussions in russia and the economy. that it is no denying was not that great. in any case, the economy is slowing down and they are depending on sanctions. , cane seeing new markets you believe it's? who could ever say that.

it is doing well, relative to others. >> what about turkey? there is the benefit of distracting the headlines away relative toand other problematic regions. >> talk to me about china. we have had headlines in the last half an hour, basically. the yuan has had the biggest drop since 2008. engineered by the authorities as a game plan. it is a policy move and from my , i'm happy to see a proactive bank liberating it. high you read into the corporate defaults that we had a couple of weeks ago? we are still on the fence about china.

it is orchestrated and they have a firm handle. another is saying that this is the biggest and riskiest bet for the world economy and the next three years. ityou mess it up, you have on your hands. risks.e is a fear and at the end of the day, we are seeing companies exporting there and it is small. >> for now. >> yes. i would say that i have not seen any signs of policy error on the part of the authorities. i tend to see everything as firmly under control. >> given what is happening in ukraine and was happening in south africa and china, are you more optimistic on emerging markets than you were a couple of months ago? because of the ukraine, we realize that global risk and

political risk is out there. >> it is interesting. m.d. --emember, everybody was so bearish on the markets. are looking better. energy markets are back in beenon and the crisis has a big pickup, in terms of headline and shock to risk sentiment. visibility on the front of this crisis before we can go back to emerging markets. >> if the ukraine get out of russia is a bit more aggressive than we expected to it make european countries more cautious. what's basically, the higher the escalation, the riskier the contagion is. it will give broader and broader.

become aario, it can global crisis. we are not there yet. >> to do so much for all of the analysis. it is the head of the emerging markets strategy. coming up on the program, jimmy takes us forward to an ipo. we will have details up next. ♪

>> i call upon russia to meet with the ukrainian leaders and tort dialogue with them and move to de-escalation as quickly as possible. let's. from catherine action. she is meeting in brussels with other administrators to discuss sanctions against russia. the pulse is coming up and i am joined by guy johnson. we will have more on ukraine at the top of the hour. upwe have all of that coming . referendum going the

way you thought. we have to get a handle on how those will react in the situation. bloom will join us from hsbc. see what is waiting to will happen next. we have a chinese story to discuss next. this is a story that has largely been anticipated. nonetheless, we will be giving on how the russians .ill react look forward to that. hopefully, we will get some news on the latest developments. so many open ends on the story and hopefully, we will tie down some of those. we have the final read on the

euro zone inflation. it's bc numbers have been getting out of the region and the country is pointing to a downgrade of 0.8% to 0.7%. >> guy johnson has the polls in about 15 minutes from now. rwe has agreed to sell its energy. that is backed by a russian billionaire. now, our europe editor, david tweed, has the very latest. is this beginning of a new phase in oil and gas investments? >> it could be. i will remind you that last aar, they sold their stake in company for $5 billion. now, there is an oil and gas subsidiary of rwe that is based in hamburg and they said they

want to use it as a principal conduits for investments in the business. said, the unit has interest egypt.any and also, off of the coast of norway. rwe,the point of view of they want to sell their oil and gas unit and focus on the core business, power and energy production. it tends to work from both sides. still, it is a sign, from the russian point of view, that this is business as usual. their investments company is based in luxembourg. it isstingly enough, advised by a former ceo of bp, lord brown. david just said that they

will be buying stake in. pirelli. >> they could be on the sanction list. on buying 50%ead of the italian tiremaker. they sell the products throughout all of their gas stations in russia. a tightening of an arrangement between these two companies. >> thank you so much, david tweed. story.d to another jimmy choo. we are joined at the very latest. why are they considering an ipo?

me for a a great ti reseller. retailers that have unknown names are up 40%. why not do it right now? >> this is appealing because we are talking about luxury and high end luxury. it is a good brand and recognizable. >> yes. >> anything else that investors should watch out for? >> apart from the shoes? like jimmy choo and gamo, forferra investors that buy into the real estate story, they are looking for new opportunities. >> what do they have to gain from the sale?

>> they pay 500 million pounds. they are looking at a range of one billion pounds. that is a hefty chunk and retailers are going up in trading. there is quite a bit of money to be made from its. >> it is amazing. 500 million a few years ago. that is pretty amazing. thank you for joining. coming up on the program, crowd sourcing the galaxy. a competition kicks off that would help people to avoid a real-life armageddon. the details are coming up next. ♪

asteroid hunting contest starts today. if you can find an asteroid heading towards the earth, you could win money. it is the latest crowd sourcing situation and this time, you could save the world. for aeroids are important couple of reasons. they contain valuable natural resources and the ability to kill everything on earth.

nasa is creating an asteroid hunting contest. you can win $35,000 if you can come up with a better algorithm to track asteroids. currently, nasa is only able to track one percent of all asteroids in our solar system. there could be an asteroid heading towards us right now and we would not know. we have had close calls. some are closer than communication satellites. on the same day, an asteroid street. it exploded with the force of an atomic bomb. that asteroid was 50 feet across. an asteroid that was one mile wide would make things cataclysmic. obviously, it would be better to find these things before there is a planet destroying event. it is important to remember that

plants where resources are exploring resources for profit. many asteroids have precious minerals. asteroid detection is not only a good way to prevent mass extinction. it is also a good way to make a dollar. >> to bring you up to speed with dealnies on the move, the will generate savings of 2 billion euros. vodafone is compensating for sales. makeselandic company that the blades used by oscar pistorius says that they will resume ties with the olympian if he is acquitted of charges. oscar pistorius as flight not guilty to the charge of intentionally killing his

significant other. claims on chinese state-run say -- on service were highlighted in a broadcast. apple put it out with folks like you. for a recap of the biggest market stories, we know that they are meeting right now with the foreign ministers in brussels. we have to see how it pans out. >> we know what we saw. and russia vote annexes the region. that remains to be seen. nobody has heard anything from vladimir putin yet. what are they looking to do? is this to prevent russia from annexing the region? at this point, there are visa

bans and trade sanctions that we are talking about. there's too much interest for europe and russia to really go .hrough >> last week, there is a big market selloff on the week and today, there is a technical rebound. >> look, it is an old cliché. it is sell on the room and by on the news. last summer i looked, they were down 70% on the year and that is a reaction, francine. watchrency is the one to out for. >> without a doubt. anybody who is a big chunk of revenue out of russia is going to get hit pretty hard when they convert to domestic currency. >> thank you so much, jonathan ferro, for the latest on the markets. stay with bloomberg because guy

johnson and i are back with a with and will be joined perspective on the russian standoff. in the meantime, you can follow us on twitter.

>> referendum results. gremio wants to join russia in moscow faces sanctions. >> the malaysia air mystery deepens. the crew comes under closer scrutiny as the hunt expands. we will bring you a live briefing this hour. >> a $10 billion deal. ono.one snaps up good morning to our viewers in europe. a warm welcome