>> 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 to those just

waking up in the united states. i am guy johnson. >> this is "the pulse." >> what do we have coming up? a program that pays people to save the planet from asteroids. >> what the luxury shoe business is looking at the stock market. >> let's get to the ukraine. the crisis deepening over the weekend. voting almost unanimously to secede from ukraine and join russia. crimean lawmakers have formally asked to join the russian federation. meyer.s bring in henry he joins us on the phone from moscow. to uss what is surprising and a lot of market insiders is that we have not heard about

russia and what it will do next. is this normal? are we expecting mr. putin to talk in the next couple of hours? >> yes, he is in sochi at the moment and he will undoubtedly be asked about this. things could move fairly rapidly. parliament houses of probably thisaw week or next week which would formally incorporate crimea into russia. >> my understanding of the legal situation is that the legal situation only allows for russia to annex another country or region if where that region is coming from accepts that this should happen. how was mr. putin going to get around this? >> what they have done is the crimean parliament has just announced independence from

ukraine after yesterday's. therefore russia will accept crimea as an independent country joining it. it is no longer considered to be part of ukraine. that thately is russian military incursion into eastern ukraine happens? given the implications of what people are saying in moscow. >> it is looking as though that likelihood is increasing. it is not possible to say at this stage that it will happen, but the likelihood is increasing. there have been statements made by russia which indicate that things are moving in a direction. the russian foreign ministry said that it was receiving appeals from citizens in eastern ukraine for russian intervention and there have been a number of deadly clashes in cities in that region, which the ukrainians say

by the supporters of russia. >> henry, thank you so much. >> let's get up-to-date with the situation in brussels where european union foreign ministers are meeting. they have entered the building. what have they been saying? the foreign ministers have been meeting for about half an hour now. we expect them to freeze the assets of a number of russian officials and ban those officials from traveling within the european union. they were meeting a number of those foreign ministers before they all gathered for a friends of ukraine group meeting, a breakfast this morning. that is where he spoke with seven of the foreign ministers. you get the distinct impression from them that none of them are quite ready to impose economic

sanctions against russia just as part ofone target this asset freezing leaders of russian business. let's have a listen to one of them. >> if things develop, i would not exclude that they could be expanded. statesstand that other have relatively different opinions on this. so far, the first is going to be officials from government rather than from businesses. the list the foreign ministers are working off of include more than 100 names. last week, it included the ceos of the world's most largest natural gas producer and the largest publicly traded oil producer, also a big supplier to western europe.

iearly from the conversations have had today, they do not intend to go there just yet. eu leaders meet here themselves on thursday and friday and that would be there opportunity. >> where does that leave the situation in ukraine? referendum itself when down much as expected. perhaps most interesting right now in ukraine is the presence of russian forces outside or russian militia outside crimea itself. the defense minister of ukraine said that ukraine and russia had come to a military truce that will expire on friday. if we were to see any ramping up of russian forces in ukrainian ,ainland, in ukraine proper outside of crimea, but still in , withinover the border

ukraine's sovereign territory, that would almost certainly lead to an escalation of the response from the european union officials. >> thank you so much. the very latest live from brussels. in thedevelopments region continue to have a significant impact on the markets. let's find out how that is being priced in. jonathan ferro joins us with the details. if you look over the last month, we have had a pretty big saddle on the european equities. we have a big break height by the russian central bank. this is about politics versus economic reality. you have a company that accounts for gdp and it is driving markets for one region, it is about political spillover and escalation risk.

russia exports $160 billion worth of gas and crude oil to the european union and the united states. we have no idea what the sanctions will actually look like. it seems like the european union foreign ministers don't either. the ruble is one to watch out for. >> i think it is. european leaders care about sfxs, energy costs, and fluctuations. the ruble is at record lows. any company that has significant revenue coming from that region, they will get a smaller and smaller slice of that when they converted it to their domestic currency and that will hurt european companies. thank you so much.

jonathan ferro with the market impact of the crimea referendum. >> it has been more than a week since the disappearance of the flighta airlines disap 370. we are looking at a significantly bigger search area. >> it is increasing the search in the search area and in leeds and angles that investigators are following. let's look at the size, the sheer scale, of what they are having to contend with. has extent -- kazakhstan in the north. all the way down to indonesia. 28 million square miles. that is more than double the size of the african continent.

huge. needle in a haystack comes to mind. leads, angles. the police are investigating the entire crew. they are to family members, loved ones, trying to visit the homes, get that angle. 26 countries are now involved. russia, france. the french can lend their experience. 447 it tooklight two years to find the main wreckage of that flight. 400-500 taiwanese fishing boats are helping. >> there are theories with what happened to the plane. what are investigators now looking at? >> they feel that this was an

intentional diversion of the aircraft. aircrafthat the operated for seven hours after it lost initial contact. the aircraftthat was veering hundreds if not thousands of miles off course. thatis really worrying is somewhere this wreckage is below the india note in -- indian ocean. there is a good chance you will never find this, one quote. back to you. >> thank you. we are expecting a news conference later this hour. >> vodafone has agreed to buy ono. $10 billion for the spanish cable operator. we will take a closer look at this transaction a little bit later in the program.

>> expanding the help to buy program. >> a key part of economic security is being able to afford to buy a run home. hashelp to buy program helped with that. we are going to extend it for the rest of the decade. that will mean 120,000 new homes. >> we will bring you the chancellor's budget live. >> determined to let the world know that he did not create it: -- bitcoin. >> crimea votes to become part of russia. what happens next -- we will

discuss the situation coming up here it -- coming up. ♪

>> the referendum was illegal and unconstitutional. >> that was the polish foreign minister speaking us -- to us in brussels. european union ministers are meeting their to discuss the next steps. follows the referendum

yesterday when crimea voted to break away from the ukraine. analysis on the situation. good morning. >> good morning. as we start to progress the situation, putin is going to do what next? anmost likely, go at it with annexation of crimea. meet to see how russia will react to the sanctions that we should see coming later today from the european union and the u.s. as well. >> what if russia wants to de-escalate this?

the only way to do that is by what? we are not going to annex this? they not say, thank you very much, but we are not going to do this? >> they could do this. the annexation is not a given. it is very likely, given all of the pledges done so far. it is not a given. the first sign of a de-escalation would be moscow's deciding to talk to the government in kiev, recognizing the legitimacy of the interim government in kiev. that would be the first sign. >> why does russia need ukraine? besides the military bases. it can get all of these things with crimea being independent. why does it need it? what is the psychological story here that surrounds this particular piece of territory? >> plenty of history, plenty of

identity issues. most importantly, the issue of ukraine becoming potentially a nato member in the future, something that the russians are very nervous about. it is about the geopolitical future of ukraine. putinthis not about losing? he said this is a former russian colony, some country that used to be part of russia. he is struggling to let go of it because he wants to build his own empire. this is about him. putin, this is important because it helps in terms of popularity. kiev.w what happened in you might get nervous about a similar event in moscow.

it is difficult to go against nationalism in russia these days. isondly for putin at stake showing that russia still -- you cannot mess around in the black sea area without having russia involved. that was a concern from russian point of view. of how this politics, russian once the nationalism card has been played, it is hard to gauge exactly how that story is going to unfold. in terms of the history of russia, how big a risk is putin taking here bites stepping into by stepping into structure? political it is clear we are not in a democratic structure in russia. >> the impact of nationalism

will be felt much more and foreign policy. -- in foreign policy. poland is extremely nervous. the baltic republics are very nervous. a more chauvinistic russian foreign-policy could put these countries under more pressure than they currently are. when the european union announced this roadmap for sanctions about ukraine, it is not just about the sanctions -- it is about the political message. willing ton union is restart negotiations with multiple but in georgia. it is not just about ukraine. >> making sure the map is drawn in a way that -- >> suits them. thank you so much for joining us. >> it is now time for company news.

rwe has agreed to sell. the deal is solute at $7.1 billion. >> h&m says february sales are up. retailer has more than 400 more stores this year than it did last year. tv cited blacke nikon cameras. >> will shares be as easy to sell? we will get the potential ipo for jimmy choo. ♪

>> welcome back. it is time for today's hotshots. despite the conditions on the the third straight overall title was won by marcel hirscher. day ifs st. patrick's you have not already noticed.

even rivers are bringing out their inner leprechaun. dyedhicago river was emerald green. plenty of happy irishman out on saturday night. a unique light on the scottish independence debate. there six months until scotland votes to break away from the u.k. shetlanders are vying for their heritage. i like the kilts. >> that looks like a fun party. party in the markets? >> party in the markets. geopolitical risk is front and center. eu and the u.s. do

to respond with sanctions if russia annexes crimea? the chancellor of the u.k. talks about expanding the help to buy program until 2020. the u.k. is climbing higher on that. in about an hour and 30 minutes time, we will get you inflation data. revised to lower, will the ecb react? >> thank you so much. jonathan ferro with the very latest on the market. >> a new state of mind for alibaba. it has set its mind on wall street and what could be a record-setting ipo. details on that coming up. you can follow us both on twitter. a very happy st.

patrick's day. >> it was a great weekend of rugby. and yeah. happy st. patrick's day. ♪

>> welcome back to "the pulse." live from london. >> these are the bloomberg top headlines. >> crimean lawmakers have declared independence and formally ask to join the russian federation. the european union and u.s. have warned russia not to annex crimea. >> we propose to move to a further stage of the european response today, with travel bans

and asset freezes on individuals. that is one of the things we will be discussing today. i'm confidence we will reach an agreement on that. at the same time, every diplomatic channel remains open to russia. itsalaysia is broadening appeal for international help in the search for the missing flight. authorities have asked 26 countries to support the mission that stretches from kazakhstan to the waters of australia. a news conference very shortly. >> the u.k. chancellor plans to boost construction and the budget. bbc he wouldthe extend the help to buy program. seals have stormed oilip attempting to export

from libya. the ship was boarded close to cyprus. more details. what should we know? be asking, what is the story, morning glory? a statement from the u.s. department of defense says that around 10:00 eastern time this boat was boarded by u.s. navy seals because they said it was carrying oil a listen lady. -- illicitly. they boarded and took control of the commercial tanker, morning glory. the vessel was north korean flagged, but north korea rescinded that flight when it was asked to by the libyans. we have rebels in the eastern parts of libya, they managed to

get a hold of this tanker, they managed to loaded up with oil. it libyan navy tried to stop , but the ship somehow gave them the slip and made it into international waters. that is where it has been since then. until it was boarded by the u.s. navy seals yesterday. it is now sailing back to libya shortly, the plan is to effectively repatriate this vessel. it is a big deal for the libyans and the rebels trying to get autonomy. >> thing to so much. let's take you to malaysia now where we will listen in to the latest. two groups. countries in the search corridor. countries from which we are taking assistance and expertise. those in the search core door -- satellitesradar and

and specific assets for the search. them to share their action plans, rescue action plans, so that we can coordinate the search efforts. details of any information required. revealnot at liberty to information from specific countries. we are gathering all information as part of the ongoing search and rescue operation. ladies and gentlemen, over the , we have been working on the diplomatic, technical requirements of the search. the number of countries involved in the search and rescue decreased to 26.

malaysia continues to lead the overall coordination of the search efforts. the southern corridor has been divided into two sections. the demarcations were agreed by the ito. australia has agreed to lead search in its respective region. search has already begun in the corridor. the royal navy and air force have deployed assets to the southern corridor.

australia has moved and orion aircraft to the region. australia will send an additional two aircraft. an orion and a hercules. we have been working with international investigators and authorities since day one. china has joined the investigation team. officials from the french office of investigations also joined the team. these authorities are working with malaysian airlines. they can help with the search. saturday, investigations were

started into all crew on board, including the pilot and copilot as well as those handling the aircraft. the family members of the pilot and copilot were interviewed. the pilot's flight simulator was taken from his house. the simulator was reassembled. cooperating with the fbi in support and other relevant international authorities. theuld like to address accusations that we have held back information about flight 370.

our priority has always been to find the aircraft. we would not withhold any information. we also have a responsibility not to release information until it has been verified by the international investigation team. this is for not only the families, but also to the search and rescue operations. it would be impossible to supply -- deploy substantial assets merely on the basis of unconfirmed information. we expanded our search to the new area. i would like to read the u.s. investigating statements on that. the u.s. team was of the view that there were grounds for the authorities to deploy this, to

conduct a search on the western side of malaysia. soon as we verified and corroborated the new satellite information as to the's class of bowl -- the last possible moan whereabouts, we coordinated the efforts. we will release a more detailed map of the northern and southern corridor. malaysia airlines has set up care for the families and crew members. -- of crew members. that was the acting malaysian transport minister talking about the search efforts. just going through the search, cooperating with the fbi and interpol from day one.

hans nichols has been covering the story. to approveuggling the government structure. >> they could not get it in hong kong. they're going to new york. do they do it on the nasdaq or nyse? we know what facebook did and twitter did. nasdaq did not come across well. take a look at market cap. billion.und $153 it could be as high as $200 billion. you look at revenue. revenue is a little bit down on alibaba.

these are all fourth-quarter numbers. they will look at the books, they will have an offering. we will see, do they choose the nasdaq or the new york? >> i know you will keep on top of the story as well we. the latest on alibaba. staying with ipos, jimmy choo is said to be in early talks to go public. lot of iposring a coming through at the moment. this is part of the same story, i guess. >> definitely. same periodat the as they were last year. you will definitely be thinking,

why should i not try going public? how much did they pay for three years ago? >> they paid about $500 million. we're hearing now that they are considering one billion pounds. that is at least doubling, if not more. >> that is a pretty good investment, which is why they want to make the most of it right now. all of the ipos we have seen, investors are coming in the first day and bought the shares immediately. they have risen so much in the aftermarket. bankers are pitching it to them. they have not yet decided. would think,m, you why not me in the direction of going public? >> especially if you make 500 million pounds in four years. >> vodafone has reached a deal to buy the spanish cable $10 billion.for

caroline hyde joins us with the details. interesting that this is an ipo that is not going ahead. ono is being snapped up by vodafone. vodafone keeps splashing that cash. it sold off its stake in verizon wireless in the u.s. it said, we have the spending power of up to $40 billion. to make acquisitions and make acquisitions. now they are buying a spanish cable company. vodafone does not just want to supply a mobile phone, they want you to be accessing data, the internet at home but vodafone, on your internet, on your tablet , when you're using are smart tv . we have all been talking about the internet of things.

vodafone wants in on that as well. this is why they are purchasing ono. 7.2 billion euros. >> we will take a break. we are back in two minutes. ♪

>> welcome back.

let's get back to our big focus, ukraine. crimean lawmakers have asked to join the russian federation. we have been hearing from european union foreign officials as they arrive in brussels. >> markets are remarkably calm. not a lot going on. this sense that the world is about to fall apart. there is not the kind of feeling in the markets. is it just delayed, deferred? ,> with equities having held up they seem very calm about it. you would expect them to really come through and come through and earnings. with equities holding up, the markets have been calm. as well as the usual gauges we use to measure the kind of risk would be dollar-yen and swiss franc.

with dollar yen, most of the markets are going up with some more qe and tax changes. euro swiss is doing nothing. equities are holding up. we are confused. we are confused because the usual gauges are just not operating. >> are we confused or are we complacent? waiting to see what the response from the european union and the united states is. >> and russia. >> we are waiting for that. the market seems to be very calm about both things. if there was going to be a problem, these things should be moving up and getting crushed. indonesia is doing brilliantly.

the market is saying this is a chinese issue, that was an argentinian issue. the markets are not saying there is a global problem. they are saying, this is local, isolated problems. >> you are joining the dots. should the market correction be here? is there a danger that they wake up in a couple of days, we have huge sanctions, and it all goes pear shaped? >> fx is not operating the way it used to with all of this qe and bonds. equity is going to be the answer. it is holding up really, really well right now. you tell me. panic and there is no contagion. it is the contagion issue that has been very interesting. draw thet refuses to

line anywhere in the world to say this is a contagion. >> can i ask you what is happening below the surface? where does the money show up? >> money gets absorbed very easily. indonesia saw liquidity. if you look at south africa, brazil, turkey -- whenever some problems with liquidity in fx markets. functioningts are normal and well. people do not know what to do. we are not saying that much action. we read the stories in the newspapers of people moving their money and around, but we are not seeing a huge flow in the market in one way or another. otherwise we would see spending. which we are not. obviously, the flows are not

china or mess is the -- the normosu asnot as gi people are making it out to be. >> have we not seen the selling off of dollar? the market is very big to absorb these kind of flows. >> thank you so much. we are back in two minutes. ♪

>> what we're watching for the rest of the trading day. caroline, let's start with you. >> flight 370. the large of the search is becoming apparent. when u.k. newspaper has done the math -- 28 million square miles where now searching. kazakhstan in the north. australian waters in the south. needle in a haystack comes to mind. no updates in the press conference we are looking at now. the police are investigating the crew, pilot, copilot, those that handle the plan before hand. going to their families, their houses. we have 26 countries involved in the search. >> let's talk about what is happening in the crimea story. formerly asking -- formally

asking to join the federation of russia. >> eu foreign officials meeting right now. we expect them to announce that they will freeze assets of a number of russian officials and bar them from traveling within the european union. will russia accept crimea's request to become part of the russian federation? crimean officials are in russia today. eu leaders gather here in brussels later this week. they may want to take the sanctions up a notch. >> david, you are watching euro zone inflation numbers. >> their critical. -- they are critical. the market believes there is disinflation in europe. currency, wages are being cut. there is disinflation.

the ecb is not going to accept that. this number is going to show whether they will. they will do some type of qe and that will weaken the europe. >> are they ready for this? >> they may need to loosen policy. germany gets a lot of energy from the gas pipeline from .ussia 1.45 that is disinflation area. that will knock off from the 1.7% inflation target. they will be missing the mandate. by the run admission. they cannot allow europe to continue to rise. to thise to wake up

disinflation area environment. do something, do something big, get the euro zone economy going. >> thank you so much. we are back in two minutes. ♪

>> this is "bloomberg surveillance." >> the referendum meets full international norms. the west will freeze russian

assets. malaysia seeks radar data from 25 nations. where do they look? striking a balance between your facebook page and national security. we will look into that this hour with david kirkpatrick. good morning, everyone this is "bloomberg surveillance." i am tom keene, wearing a green bowtie. joining me adam johnson. scarlet fu is off today. here that an johnson. -- here is adam johnson. >> overnight, asking prices for homes searched -- surged to a new price. the south korean prime minister said that people need to be aware about increased prices.