>> tiling on the pressure, the e.u. in the u.s. expand sanctions against russia. itrussia has to know that will only isolate it further from the international community. >> could the room sharing service air b&b be worth more than $10 million? do it.nike just may not shares fall after hours after they signaled momenta may be slowing.

hello, welcome to "countdown." i'm mark barton. edwards.nna stay with bloomberg all morning because we have big interviews coming your way. the first door opening in dubai, the first international store. we will be speaking with the ceo , taking us through the decision, later on "countdown." >> exclusive interviews, u.s. relations with the u.k., and ,ollowing the latest earnings an exclusive conversation. states and the european union have or although the list of russians targeted for further sanctions over crimea. eu leaders met for the second day of a two-day summit in brussels. the possibility of more sanctions top the agenda. ryan chilcote is in brussels

with the latest. >> good morning. late last night, the eu expanded its blacklist of russian officials that will be subjected to asset freezes and travel bans based on short of economic sanctions. i followed her next mention of the united states' blacklist. they expanded the number of officials they will expose to asset freezes, broadening it really to not just senior members of the russian government. the head of the russian presidential administration, but also russian business leaders, the head of the state controlled railways group, russian railways , and also some of the billionaires the u.s. treasury department said were the cashiers of the kremlin. one was an owner of a trade group that a couple years ago did $92 billion of business.

he was sanctioned. the company then said he had sold its stake a couple days ago to his partner at the company. the u.s. also made the allegation president putin has financial interests in the swiss oil trading arm. the u.s. also when after a russian bank, bank russia, not to be confused with russia's central bank, saying it had been sanctioned. both countries, regions stopping short of broad economic sanctions, but ratcheting up the blacklist. >> we are just showing the impact some of these discussions and these latest double guitar having on the russian market, what2.37% at the open, but has russia's response been to these new developments? >> i guess twofold. if the u.s. and european union were hoping to dissuade president putin in the kremlin

from going forward with the they have of crimea, been unsuccessful. yesterday we saw the lower house of the russian parliament approved the annexation. that now goes to the upper house. goes toesolve when it going forward with the plan in the ukraine for russia, despite the fact nobody intends to recognize the region as part of russia. russiaond thing is responded with its own blacklist, nine u.s. officials, a response to the u.s. moves, spanning members of both president obama's administration as well as some senior u.s. lawmakers like senator john mccain was been an outspoken critic of president putin for some time. >> what has the response been of those targeted by the sanctions? >> yeah, you know, many of them have called it a badge of honor or have just said they simply don't care. we heard from senator john

mccain. he is on russia's blacklist, saying, i guess i will have to ors her my siberian holiday, and that secret moscow bank account is gone. the same snarky comments from the russian side, saying i don't have any assets in the u.s. anyway. who came up with the silly measures. quietly though, perhaps both sides would be concerned about this. they do have consequences in general when it comes to banking, for example, and the international financial community. it is reason for concern for both sides. however, publicly, they are playing it up to the domestic audience. >> ryan chilcote reporting from brussels. >> jon ferro is here checking the market reaction to sanctions. russian stocks have opened? >> lower. i think it is easy to get excited about this. before today, russian stocks were up 6.7% on the week, would have been the biggest week since

december. a bit of a rebound earlier this week, but these are the losses that cannot even compare in comparison to the loss we saw monday morning. yes, the reaction, down 2.6%, the dollar up about .2% against the ruble. >> but it is down over the week as well. the context is important. what really interests me, the last 24 hours, the moves by fitch and s&p, not only credit ratings. on the growth, the outlook for growth. both are looking for about one percent again this year. this is a country that once produced annually five percent growth. people talking about they don't care about the sanctions. bottom line is the economy on a decline it will certainly hurt them. >> the global stock markets don't seem deterred by the escalation of sanctions, do they? asian stocks are up, u.s. futures are higher. >> yeah, i think we have to

think about something else -- china. china put out their beige book overnight. a lot of people looking at that, concerns the economy is slowing. when you mix that with geopolitical risk, other things to think about. investors choosing to keep their eye on jobs. >> let's get more on ukraine situation. we are joined by the global , mark mcfarland. thank you very much for coming in today. when you look at the latest developments, the international geopolitics, clearly center stage. are you looking at this as an economist at the trade impact, the inking system, the impact on individual companies, the energy market? how does this manifest itself in your world? >> all of the above, everything you mentioned. the capital flow implications, the trade implications, banking implications. essentially, sanctions lead to

stop transferring cash, stopping trade, stopping the economy. as your correspondent said, growth in russia will probably be about one percent this year. that is a lot down from where it was. the russian markets are reflecting what is happening in russia. and the region as a whole is slowing down rapidly. >> eurozone ask ports to russia, 2.5% of its total. german exports slightly more, 3.3%. isis not a huge percentage, it, mark? will russia feel the sanctions more than the eurozone? >> it depends effectively what happens to gas. if the sanctions escalate, and it is beginning to sound like the 1970's and 1980's, it depends on whether gas flows from russia to europe are actually impaired because of sanctions. that would hurt the european economy. what would really hurt russia is ofecline in trade and sale

oil and gas. there could be a substantial escalation. >> we had a guest yesterday that analyze the implications on gas supplies. he said today there are alternative routes, stockpiles are stored lehigh in europe. he was comparing it to 2009, when russia disrupted supplies through ukraine. >> i think that's right. the level of inventory is actually very high. europe as a lot of wiggle room. they can get through probably 5, 6 months without it becoming a serious problem. at deutschemist bank said there would have to be a material impact on the european growth story. we would have to see an extreme scenario and deep recession in russia. is that the case do you think? worst-casethe scenario comes through is if it becomes a conflict that starts to impinge on the borders of poland in the czech republic.

the european bank lends a lot money to the eastern european banks. therefore, there are liability issues with the banking system. that could be why the problem starts to begin we get there. i don't think we will, but that would isolate a potential problem. >> we will come back to you in a minute, talk about other massive items grabbing investors attention globally. >> we're going to take a short break here on "countdown." no, we are not. we're going to talk to you about something else, ships and planes from the u.s., australia, new zealand scouring the area in southern india ocean for signs of the missing jet after satellite spotted at least two objects. paul allen sent this report from sydney. >> 25 planes in 18 ships are either in or on their way to this area, 2500 kilometers west of the capital perth, some

distance into the indian ocean. the first ship to arrive is now on the scene, a norwegian flag carrier. it is in the area. planes are also backed up in the air today, looking for these objects. these grainy images were spotted by a satellite that could be very much could be debris from the missing malaysian airlines flight mh370. thursdayes were out searching for these objects, covering 22 thousand square kilometers of open ocean before returning to perth having found nothing. while that sounds like a large patch of sea, you have to keep it in context. these images by the satellite were taken back on march 16, five days ago. the heavy seas really could have move them anywhere. some are suggesting it could have drifted as much as 400 kilometers from the spot they were photographed. is also known as the roaring 40's, which tells you a lot about the weather

conditions. the wind can get very strong, no landmass to really slow them down. that makes wells big. the visibility right now is not so great. have been struggling with low clouds and rain, making life difficult for the search teams. another challenge is the sheer isolation of this area. the planes need to fly for hours just to reach the search zone, and once they get there they can only look to hours for the have to turn around and head back to perth to refuel. bearing that in mind, no surprise the australian government and the maritime safety authority is doing their bit to manage expectations. the prime minister tony edward said this is a very serious lead and the way that nothing else has been particularly considering it is close to the southern corridor or. the maritime safety authority is stressing even if they manage to find these objects, there is no guarantee they are in any way connected to the missing flight mh370.

still, the effort continues. more assets are on the way to the area. we will have to wait and see if they can look at those objects. paul allen, sydney, australia. >> malaysia airlines is considering that it cannot put a value on claims, but the coverage can meet reasonable costs. it is considering an advanced payment for family of those who flew on the mh370 flight, and the compensation is subject to proof of loss, but it does have malaysia airlines adequate coverage, they say. claimsng up later, milan to be the fashion capital of the world, but one italian luxury company has its roots in rome. stay with us for an inside look at the brand and a sitdown interview with the ceo. ♪

>> time for today's company news. boosting their cash bid for the second largest company to derail

the bid by the cable tycoon. the proposal has the backing from the french government. after china is covering spinning for 2014 as they invite private investors. capital expenditures in 2014 are 17% lower than last year. the government is pushing to reduce dominance of the gas producer. twitter access was blocked for many users in turkey after the prime minister said that twitter ignored calls to move content related to a government corruption scandal. one user leaked documents and audio files described as the result of an official investigation of corruption within the government. welcome back to "countdown." i'm anna >> edwards. i'm mark barton. b&b is set to have an

ipo. caroline hyde, who has used it. >> i have. >> a very big price tag, and a bigger price tag? >> just six years old, already worth $10 billion. alarm bells should have run because of the initial funders of the business. this is the third big fundraising it is doing. as we know, now valued at $10 billion. the people who got in early are people with amazing track records. , who didorea capital their investing. they came in with a huge reward. first-ever backer of facebook, the cofounder of paypal come he has been a big backer. >> and in germany? >> it is an amazing business when we look at the scale, 34,000 cities that you can rent

apartments, houses, a bedroom, a sofa. 192 countries. worthwo years ago, it was $2.5 billion. quadruple that in less than two years. it has quadrupled because the scale keeps getting bigger. the value is $10 billion. it is raising just shy of half $1 million -- half $1 billion overall. it's fascinating how quickly it has been able to open up to international markets, isn't it, really tapped into this theme of the sharing economy. it is the poster child for the sharing economy, but there are regulatory concerns. there are, particularly in new york, paris, berlin. many feel that flouts regulations. cynically, many feel this is the hotel chain. overall, new york city claims it is illegal for a room to be

rented for anything less than 30 days without a tenant. the business model is that you hand over the key and are out of the premises and leave it over to the people who are holidaying in that city. i did that when i was in amsterdam, i stated in this fantastic apartment that no other hotel could have her find me with such a location, such the core. charged a relatively small amount. these concerns from investors that chase you keep a nylon. paris is rising up, berlin is rising up with revelatory issues, but how strip, other companies do the same thing. to convince the politicians that maybe with a little taxation on the side, and little bit of money towards the government, they can rape the therds for -- they can reap rewards of air b&b. they tend to take about nine percent, 15% of the overall rate. to take a bit from you when i

that are going to rent it. caroline, thank you very much. we'll take a short break. >> mark mcfarland is going to stay with us. do stay with us. ♪

>> welcome back. this is "countdown." i'm mark barton. >> i'm anna

edwards digestave added a day to janet yellen's comments about fed tapering. we have had a day to decide whether or not she meant it, whether or not is a good thing, whether it is bad. what do you think? >> was it a slip up? i don't think so. i think she was afflicting the wide dispersion of the federal open market committee. will giveink the fed itself a date where it has to raise interest rates. that is not very clever. i think all she was telling you as interest rates probably will go up sooner than you think. there is the potential for the labor market to give you wage inflation. was a bit of a slip up and she gave a date when really you think she should not have question mar? >> she said maybe six months

afterwards. >> they might have backtracked? >> 24 hours later, you would think something would have appeared in the wires. was interesting was the way the futures market moved, backtracking on the date for the first rate hike. world must back to where we started. >> how about the slowdown in china? >> not at all. there are short-term issues with growth, but also positive long-term policy changes. the policy makers in china have been engineering the slowdown. >> we should not be surprised when we see that serializing. think abouthen you the policies in november, and, anticorruption, -- anti-pollution, anti-corruption, they will bring lower consumption because people don't want to be spending too much a

maturing goods, which leads to lower growth. >> the stance in your research was the topic of capital flows in emerging markets. one would assume if you listen to the media that capital has been floating out of the emerging markets. you say, no, data proves it. >> these new york aced bankers association, they balance payments. ,hey tell you the debt market particularly eastern europe, there were a lot of flows in the last few months that pretty much go against the perceived wisdom that funds are flowing out. good data. >> mark mcfarland, thank you very much. >> up next, we will hear from the ceo. find out why he says that selling fendi selling a piece of rome. >> nike's earnings did not

disappoint, but we will tell you what its presence overseas has to do with that story. ♪

>> welcome back. >> let's get straight to jobs. in the u.s., a couple of traits, the dollar yen up by one percent. the yen weakening, the dollar after its first week in two months. everybody is asking, did she mean to say six months? post-fedall it the presser. elsewhere, looking at china. the chinese currency right now down 1.25% against the dollar. doesn't sound like a lot, but this is the biggest weekly loss for the chinese currency in 20

years. >> these are the bloomberg top headlines. other -- sanctions on on another 12 russians and ukrainians. the u.s. and e.u. are pressuring president clinton to act down. >> it's important to send a clear message if there is further destabilization in ukraine, there should be further wide ranging measures taken. we have actually agreed tonight we will task the european commission to draw up those possible measures. that is progress. they have raised the outlook for the u.s., saying they have rated devbt. investigators searching for the missing malaysian airliner are chart atellites to

probable path for the jets. positioned over the equator picked up seven pings from the aircraft. engineers say that means that it flew in a direct path at cruising altitude, either progressively north or south. let's get to one of the top stories, nike. the spite third-quarter earnings that topped estimates, they are signaling momentum may slow. the strong dollar has hurt its performance abroad. it's go to berlin and hans nichols. hans? revenues, overall sales numbers, now it is nike's turn. 45% of their sales are abroad. the overall numbers in terms of their revenue and sales was quite strong. millioname in at $680 on the quarter, overall revenue

almost $7 billion. nike has spent a lot of money on advertising. or as they call it, demand creation. 2.7 billion dollars is what they have slotted for the year on demand creation. next quarter they will do another 20% increase. they have the world cup coming up. that is not inexpensive to advertise. and, mark, something near and dear to your heart, they may be sponsoring manchester united for a billion-dollar deal over 10 years. 100 million per year. at 79l motors is already million per year. the question is, is it worth it? worth ations, is manu billion dollars for a 10 year deal? do you wear, fashionable sports footwear on the weekends when you are doing earnings? that is where nike is seeing growth. guys question mark >? >> i do wear sports footwear.

i will allow mark to answer the first. >> to billion dollars, personally, yes, if i had it. the nike deal has propped up manchester united share prices. analysts a it is the difficulties on the field. shares have been rising. >> you want to tell us about the difficulties on the field, mark? >> no, no time. have to catch a train. on that crucial question, mark, you are running errands on the weekend, do you wear the proper leather shoes or what you call trainers? if you do errands. i'm not sure if that is part of your deal. >> i don't know. i don't think that mark has a casual wardrobe. i think he dresses on the weekend like this i'm convinced. hans nichols, thanks for joining us from berlin. kicksn the alibaba ipo off with an estimated $18 billion valuation, john dawson

has more. good morning, john. >> sources telling bloomberg the interesting story, some sources without being named, this goes back to the bid for softbank. $21.6 billion. backed thetually person who lost the bid. upset,t a little bit felt betrayed. alibaba, do not use barclays. top bank has a stake in alibaba. the last time this happened was june of last year. guess what, they used 13 banks, but did not use barclays. the next is the ipo, which could be worth $18 billion on the come to market. haver come using thanks we

mentioned already, which includes credit suisse, morgan stanley, goldman sachs, citigroup, morgan stanley, but not barclays. >> when one door shuts, another window opens. let's look at the positives for barclays. >> the positive perhaps is it is not involved in alibaba, and therefore other options are available. in jd.com, the stake my name, obviously, and when the company goes to market in july of this year, barclays could be the underwriter. i could be the upside. analysts a it is worth $20 billion when it goes to market. that is perhaps the window opening, but the door that was a big door.

alibaba is the second biggest company in china. quickly, i wanted to ask all week about the big news in the tennis world. course,ray, of splitting with his coach, ivan lendl. as a man who loves tennis, you and me, what is your view? lendl, who likes to be back on the older persons tour, enjoying tennis again. it is time to move on. i actually believe, from what i have been reading, he has won two grand slams and olympic gold. not win in a more grand slams, you could say that ivan lendl won this for him, per perhaps time to change. a big, big low for andrew murray. >> woefully someday you guys will play eve online all -- ivan

lendl. >> mark has an amazing sir. we call him boom-boom barton. >> malan is often thought of as the fashion capital of the world. many companies have their flagship stores there. one fashion company calls romance home. -- holes rome home. opened925, two italians a for a leather shop in rome. fendi. it was passed to their five daughters, and the fendi story begins. under their watch, the company grow to a multinational luxury brand. but they had some help from this man. kara like her felt. in 1965, as a young designer, he joined fendi. down with the first

new innovative techniques. his collaboration with the company continues to this day. fendi to create their most successful product. created in 1997, the big at that was designed by one of the daughters. four years later, the biggest change at fendi in its history. the french archery powerhouse bought a 90% stake in the company. it is now run by the ceo. fendi is still creative director of the accessories. with the younger generations in its ranks, the company is still very much a family affair and its heritage strong. also sat down with the ceo to talk more about the brand's in rome. originals,th the monuments, which is beauty, which is rome, it is

unbelievable. every time you discover a new piece you did not know existed. it's a richness that is transmitted to the creative people living here and the city gives us so much. is visited by millions of people every year. to say we are from rome is like selling a piece of lifestyle. it's a marketing tool, in a way. recently we help with the restoration of the trevi fountains, one of the most visited monuments of the world. we restore the fountains. they gave us creativity and inspiration, but this link between rome and fendi is important. >> we forget that it is fashion because of heritage. fendi is very close based to the culture, right? >> we also have a responsibility

, a responsibility about what we do because people look at that. we are very visible. to help when you can, your own city to do better, for the eyes of the people who come and visit i believe is part of the strategy. again, we are lucky enough to be from rome. a game that, neither side can afford to lose in their quest to be crowned english premier league champions. we have match analysis next. ♪

>> first. bloomberg. >> time for today's company news. microsoft apostolate or is stepping down. he was a member of the search committee that led the effort to select the new ceo. a says he is seeking full-time job as chairman and ceo of seagate technology. netflix has filed for rules that would prevent internet service trotters from subtracting a fee for "house of cards."

amazon is teaming up with the company to sell a fine works of art through its site. the pieces will be anywhere from $25 to have a million dollars. it is the brainchild of ceo jeff bezos who encourages people to put art in the cart. ."lcome back to "countdown i'm anna edwards >> i'm mark barton. let's talk for all, shall we. they will travel to chelsea. a loss would dent their chances of winning the english premier league title. , real madridlassic versus barcelona. looking his lips in anticipation is dave, who joins us with some match analysis. fairly,go, to put it

you pummeled manchester united in year be sport match analysis. you are unbiased, used stats. here it is. do you think they will lose both games? >> i think they will lose to liverpool. >> and that will be at? >> that will be it. where was that wrong? david made about three great saves. you lost to liverpool. >> we did lose to liverpool, one out of two. >> somehow you think it is ok that you fall apart right at the end. >> through to the quarterfinals. >> and now you are the worst team. >> anyway, i just wanted to show that they've can get it wrong sometimes. anyway, chelsea versus arsenal. >> it is good news after last

week. 1000th game as the arsenal manager. suppose come it is a criticism of arsenal over the years. it shows with the b sports match finalis, again, the third. if you want to break it down further. 155.7.gainst penalty area and trees means all of the penalty areas. that is were it starts to change. chelsea, much more positive. it's interesting that final passing stat is straightaway. >> it's amazing, considering chelsea don't have any good performing strikers, do they? >> their performance has dropped off.

and of course that translates into shots per match. suddenly, for the funnel, it flips over, chelsea, 17.1, 13.8. that is why chelsea is so much more effective than arsenal. at the moment, arsenal is still in the title, but if they lose that game -- >> let's look at the other side, defensively, how has chelsea fared? >> chelsea is perceived as not being very good at defending, but this would show you it's not terrible. in the first half of the season, goals conceded by chelsea, one goal per match, which is poor for them. look at the second half of the season, only four goals conceded. this is the turn of the half of the season, .36, that is why chelsea is suddenly on this drive, suddenly pushing themselves to the top. >> re-surprised with marie as coach? his teams have always been solid. >> that is my point. >> maybe it took a while for his

methods to get through. >> i think it shows the arc of their season. .36 in the second half is insatiable. in the game tomorrow we favor chelsea. arsenal can always do it. they proved last week they can play and win. >> chelsea lost. >> they did, but they are one of the few teams that were beaten in the premier league. i think it will be chelsea's day. i'm not sure they will win the title, but they will win tomorrow against arsenal. ofalso, the biggest game club football, real madrid, barcelona. >> the only game that would rival it is next weekend. the super classic. we just thought we would be a little impatient with this. there are reasons for it. >> finding holes. >> if you look at their goals

per 90 minutes, the stat is ludicrous. manchester city has one of the best goals per minute. 1.27 goals per minute. that is good for a team, but for one player in a sensational. you look at the performance in the classico, it goes down. you will say that is because they're playing against better defenses. there is an element of that, although none of real are great defensively. i think it is more the expectation, more about the players being targeted. ssi playing ine the classico, they really try to stop him. the game, ares they out on their own? >> it's very difficult for

barcelona i think to win the league. in the closing days, what you are asking the opposition to lose twice and you are not one of the teams playing them, it's difficult. and in london we have the incredible climax, the barcelona players on the last day. if it still alive, it will be a wonderful climate. .49 is really good for anyone else, just not them. , i fancy real. i think they will win the league. >> don't listen to all of dave's productions. >> when we are predicting good, high-quality teams, we are pretty good at it. up, the 2020 cricket world tournament kicks off in bangladesh. that's next on "countdown." ♪

>> welcome back to "countdown." i'm anna edwards >. i'm mark barton. >> continuing with the manchester united theme, this is interesting. this is that manchester united must go on the season, talking about the club's dna. is that a criticism of the manager? sure. suggesting they are not playing the way that manchester united all to play.

that might be the way that manchester united -- >> it's all about the brawl in the paper. for manthe easiest tie u? >> it's difficult, isn't it? >> portman? >> possibly. portman.a or >> is incredible stuff. more tears from you. i cannot take it. tissues. it makes my job painful. >> does it really? >> shall we carry on with support? >> the 2020 world cup, talking cricket, bangladesh is hosting, the first major cricket tournament they have ever hosted. it could be the last, that is what this article is about.

the government has spent about $40 million on hosting it, and a country where people survive on less than two pounds per day, factories are being shut, shops being told to close early to avoid. tickets have been sold very cheaply, a big sellout. england won this four years ago. we are not going to win it this time, are we? >> they only just scraped through, qualifying. it.reland could still do >> caroline? that resetsa pill the body clock could cure jet lag. it suppresses an enzyme come in the daily telegraph. read more on it. and how the martini can be considered feminine in the times. the article here says that james bond drank it.

femininey, it has a image come celebrate it by bringing back the classic cocktail. that is in the times today. that will do for the first hour of "countdown." we will be back with the second hour. stay with us. ♪

joined together in expanding sanctions against russia. that furthert know escalation will only isolate it further from the international community. service be room sharing be worth more than $10 billion? the company is raising money from investors. >> nike might just not do it. shares fall after hours. momentum may be slowing. hello, welcome to "countdown."

i am mark barton. >> i am anna edwards. stay with bloomberg all morning for the biggest news coming your way. store,st international the ceo of the business will tell us why he chose dubai coming up later on countdown. >> two exclusive interviews. barzun. pulse" in join "the an exclusive conversation. >> welcome to the program. russia has promised retaliatory measures in response to u.s. and eu sanctions. the measures were announced in washington on the first day of a summit in brussels. we have seen some market reaction. let's get to jonathan ferro with the details. some of the market reaction that

we have seen to this seeming escalation. >> i will break it down very simply. we will look at russian equities and currency. down about 2.9% right now. russia stock has been hit quite hard year to date area down around 14.5%. some talk about that being the ultimate sanction. dollar/ruble, dead flat. if anything, the ruble is up against the dollar by 0.1%. there has been a lot of talk about russian companies repatriating funds from abroad. not much evidence. very speculative. if you were a russian company, is it safe to bring it back to russia? that is something you have to think about. >> we have some interesting ratings agency moves. fitch put russia on negative outlook. they reaffirmed their rating on the u.s. and removed it from the

watchlist. they are suggesting that russia has more to lose here than the u.s. does. >> at least in their analysis. i thought what was really interesting wasn't so much what they thought about credit ratings. not many investors are looking at that anymore. what they think about growth is pretty punchy. they are for 1% growth out of russia. that is way off the 5% this country was delivering. for a lot of people, that is the bottom line. they are going to have weaker growth. >> some of these russians who are under sections have basically left it off. one individual who has come to billionaire,a big mr. timchenko. what is the story? >> we rang him as being worth $8.4 billion. he did hold a 44% stake in a trading giant called gunvor.

businesshat to his partner last week to avoid disruption caused by sanctions. the u.s. treasury said putin is an investor in that trade. they say he may have access to its funds while timchenko's activities have been directly linked to putin. this individual, banned from entering the u.s., any assets in the country have been frozen. we are hearing about these billionaires and individuals in russia saying, big deal. he also owns 23.5% of a company called novatek. that is russia's second largest gas producer. guess which stock is the biggest fall or today. novatek. listingt has a london which was down 5% yesterday. >> the wealth of these individuals is getting hit hard. we can't actually know where these individuals fit in with crimea and ukraine.

>> thank you very much. >> let's get over to ryan in brussels. day two of this eu summit. good morning. >> eu leaders took their time in coming out with their announcement. they stopped short of economic sanctions. instead choosing to expand their so-called lack list of russian officials. >> i also said it was important to send a clear message that if there is further destabilization in ukraine, there should be further wide-ranging measures taken. passve agreed that we will the european commission to draw up those possible measures. that is progress and the world will see that. moved after the sayingstates took action it was drawing up plans for economic sanctions but wouldn't impose them just yet. president obama said he understood those would be harmful to the russian economy and potentially harmful to the global economy.

the u.s. also expanded its blacklist. further up the food chain, targeting more senior russian officials like the head of the russian presidential administration. also, targeting some of russia's business leaders. back to you. >> what does it mean for business? >> it is an interesting one. you and jon were discussing some of these russian businessmen that have been targeted. i will give you a couple more. russian billionaires have been targeted, longtime friend of president putin. contracts asrth of part of those $50 billion or two games. they are on the list as is gennady timchenko, one-time owner of guns or -- gunvor, the

swiss trader you were talking about. the u.s., backing that obligation. substantiated, the u.s. alleging that president putin has a financial interest. that is something the kremlin has denied. another interesting one, yuri kovalchuk. -- yuri sanctioning russia's largest lso about $10 billion worth of sanctions. >> they don't seem to bother, do they? >> they don't. at least publicly. they have either said they don't care or it is a badge of honor. they knew that this was coming. they had a week or more to react

to it. many moved their assets or could have moved their assets. in russia, russia's intervention in crimea is, let's face it, quite popular. if the u.s. is sanctioning them for some kind of role in the kremlin's actions in crimea, by default, that makes them popular. >> thanks, ryan. ryan chilcote in brussels. >> earlier, we got word that malaysian air is considering advance payments to families of the missing flight. ships and planes from the u.s., australia and new zealand are scouring the area in the southern indian ocean. satellites spotted at least two objects. paul allen has this report from sydney. ships eitherand 18 in or on their way to this area. 2.5 thousand kilometers southwest of the australian capital of earth.

that is some distance into the indian ocean. the first ship to arrive is now on the scene. planes are also back in the air today, looking for these objects, these grainy images spotted by a satellite that from thosebris missing malaysian airlines flight. there were four planes out on thursday searching for these objects. 23,000 squared kilometers of ocean before returning to perth. while that sounds like a large patch of sea you have to keep this in context. these images were taken on march 16, five days ago. the seas could have moved them anywhere. some analysts suggest they could have drifted as much as 400 kilometers. the area is also known as the roaring 40's which tells you a

lot about the prevailing weather conditions. the wind can get very strong. that makes the swells big as well. visibility, not so great. they have been struggling with low cloud and rain. sheerr challenge is the isolation of this area. the planes need to fly four hours from perth just to reach this search zone. once they get there, they can only look for two hours before they turn around and head act to perth to refuel. it is no surprise that the australian government is doing their best to manage expectations. prime minister tony abbott saying this is a very serious close toidering it is that southern flight corridor. the maritime safety authority stressing that even if they do manage to find these objects, there is no guarantee they are connected to the missing flight.

still, the effort continues. forust have to wait and see them to locate those objects. paul allen, bloomberg in sydney, australia. what is preview of ahead, here is caroline hyde. >> another day, another incredible valuation for a tech startup. this one just six years old. has these things across 34,000 cities. just a year and a half ago, it was worth $2.5 billion. it is now worth $10 billion. this company is doing its third fund raising, going to the likes of tog capital. -- tpg capital. six years old. >> twitter turned eight today.

i am beginning to sound like you, mark. >> you are. bying up, we are joined barclays head of global asset allocation jim mccormick. for a discussion of his new release global outlook report. ♪

>> welcome back to "countdown." i am mark barton. >> i am anna edwards. joining us now, barclays global head of asset allocation, jim mccormick. he has just released a quarterly global outlook. give us the headlines. you are avoiding the temptation to the -- to overload your portfolio. >> the basic message on stocks versus fixed income for the last few quarters is that the valuation story is becoming a lot more balanced. as long as global inflation remains well contained, you are not going to worry about central banks and equities. we do have an overweight in equity but it is not a big one.

>> this month marks five years since the post crisis bottom of the markets. a good time to have another think about whether equity markets are the place today. >> as things do happen, people get more and more bullish. macrois a very good backdrop for equities. growth is fine, central banks are supportive. valuations are stretched some places. again, given that we are not that far away from a fed that isng cycle probably going to happen sometime in 2015, you have to be alert. >> why has it been more than two years since a global correction of more than 10%? little concerned, worried, jittery? too-year look at that period, it has been a fantastic period. two years ago, the eurozone was on the verge of breaking up and

spain was on the verge of losing market access. global growth was very weak. you have had a very good run. you have had a good run on the back of supportive central-bank policy. we are still there, but we are getting to were the end. the fed will probably tighten rates in 2015. the bank of england probably will tighten rates in 2015. it has been a long time since markets have seen central banks raising rates. >> talk to me about emerging markets. you say there is no crisis. where is the value within the emerging markets face? >> there is a lot of value if you think as we do, that china's growth is probably pretty well priced. it has been very soft in recent months but i think that is well priced in assets. large hasby and valuations very close to currency crisis type levels. em fixed income in terms of the

yield you can pick up is very exceptional. even some of the stress currencies like india and brazil are showing signs of stabilization. i think if china prussia growth does balance -- china's growth does balance, there is some good value in em across the >> when i see headlines like hang seng for rop, that is old news now? >> i think the market has responded quite rationally to some very weak news in china. the question people need to be is, what does it mean that china's central bank is starting to ease policies is to mark -- ease policies? sea change and we haven't had that in a long time.

>> over the medium-term, ken gav -- can they get the balance? >> we have to assume that the rate of growth in china is going down and there is always the risk of an accident. these rebalancings are not very easy. if i look at a lot of asset prices, they are pricing in 5%, 6% industrial growth in china. pricing.retty dire >> what are commodities pricing and? as a space, up by 1% year-to-date. dow 3% the beginning of this month. >> inside, it has been a very different picture. tiedarkets that are most to china, like copper had a terrible time. gold has done very well i think because u.s. yields have fallen. we wonder how long that is going to continue. most of the rise in the commodity index has been agricultural prices.

really, a function of bad weather everywhere. the view is that -- >> you don't look at the copper price as a canary in the coal mine for the chinese economy? it has been one of the worst performers. >> i look at the copper price and it looks perfectly consistent with what we have seen in industry a production growth in china already. if you believe that china's growth is really moving toward is what gdp is looking like in q1, then copper is about the right place. >> is the dollar the right place to be? many have forecast that it is going to rise but it never quite seems to take off. has yellen put a rocket under the dollar or not? that thetainly think real inflection point for the dollar is when a market sees fed tightening right around the corner. what did yellen due on

wednesday? she reminded the market that it is not that far away. on the dollarisk is pretty minimal. the upside risk is quite a lot. you are probably not going to realize that upside risk until the second half of this year. >> thank you sir much for joining us, jim mccormick. >> coming up, nike's most recent earnings didn't disappoint but it is signaling that growth -- see how much a strong dollar could hurt its overseas business. ♪

>> time for today's company news. bouygues has boosted its cash bid for sfr in an attempt to derail a bid made by patrick and his group. the offer values sfr at 7.5 billion euros. petrochina is cutting spending for this year as it prepares to invite private investment. seven percent lower than last year. they are pushing to reduce state dominance of the country's biggest oil and gas producer. twitter access was blocked for many users in turkey after the prime minister said twitter ignored court orders to remove content related to a government corruption scandal when users leaked documents and audio files.

>> welcome back to "countdown." i am anna edwards. >> i am mark barton. >> let's stay on corporate stories and look at nike. despite earnings that topped estimates, the company is signaling that moment am a slow. the strong dollar hurts its performance abroad. let's bring in hans nichols. ramifications for your part of the world. we heard from adidas that they were being hurt by a strong currency as well. is nike's this success. they are growing outside of the u.s. 45% of their sales are outside but they get nailed on the strong dollar. that is why their stock after initially rising -- they have almost $7 billion -- then it came back down on that forecast. nike spends a lot of money on advertising. $2.7 billion, what they call

demand enhancement. they are talking about having a stake in manchester united. $1 billion over 10 years. the biggest place for growth for them, what you wear on the weekends. sales aftern saturation. two quick questions. how many pairs of used running shoes do you have in your closet? mark, you dodged this last time. do you wear your trainers when you go out on the weekend? >> i will answer you first. when i go walking on the weekend, i do wear trainers. >> with your suit and tie? >> without the suit, keep the tie on. to the pub, have you ever worn them to the pub? >> never. not since i was about 18. >> you shouldn't wear sporting kicks at a pub generally. i don't have that many pairs of trainers. on occasion i might wear them

under a news desk, just to keep people on their -- >> can we get the camera down here? fax not today. thank you very much. just ahead, more disruption for the hotel market. we will talk air b n' b when we come back. ♪

>> welcome to "countdown." i am mark barton. >> i am anna edwards. let's get to jonathan ferro for the fx check. >> data light in europe, did a light in the u.s. euro/dollar down by 0.1%. the euro having its worst week since january. nothing to do with the ecb. 1.3783, it is all about janet yellen. did she slip? today, i am calling it the post-fed pressure pressure. it could drive this elsewhere. the chinese currency down 1.25%

against the dollar on the week. a slowdown, how is that playing out? don't be full by that 1.25%. that is the biggest weekly drop for the chinese currency in 20 years. >> thank you very much. these are the bloomberg top headlines. the eu slaps sanctions on another 12 russians and ukrainians. the verge ofn annexing crimea, the u.s. and eu are pressing president putin to back down. a it is important to send clear message that if there is further destabilization in ukraine, there should be further wide ranging measures taken and we have actually agreed tonight that we will task the european commission to draw up those possible measures. that is progress. affirmed the united states aaa. it raised its outlook on the u.s. from negative to stable. they say the united states has greater debt tolerance than many

of its aaa peers. and investigators searching for the missing malaysia airliner are using satellite pings to plot a probable path for the jet. a satellite picked up the pings after the aircraft left malaysian airspace. that means it flew in i direct path either progressively north or south. >> the start up disrupting the hotel market, airbnb is raising money from investors in a funding round set to put the company's value at more than $10 billion. let's get more with caroline hyde. company, isn't it? >> only six years old. that is the only entering the u.k. population's consciousness at the moment. this company has spread like wildfire. 34,000 cities, you can use airbnb. the business model is that you

can rent out an entire apartment, e-house. even just a room or a bad. -- a bed. much cheaper than a hotel. it has been disrupting mainly the cheaper end of the hotel market or indeed the more bespoke and. you can get some interesting properties and rooms. business users aren't really going to airbnb but if you are going on holiday, you look at it. that is why the valuation has gone through the roof. a year and a half ago it was valued at $2.5 billion. now, $10 billion. , the deepoking at tpg pockets of venture capital firms. it is one of the most valuable privately held companies. backingook at who was it, you should have had alarm bells. , they know how to pick a good one. also, founders fund.

one of theer thiel first outside backers of facebook. >> investors are pretty excited about this business. there are regulatory worries. >> there are. many cities, new york, berlin, paris are trying to fight back. either they want a bit of skin in the game, added of money that is being passed from the owner to the holidaymaker -- potentially we could see taxation in that way. mainly it is the hotel that are lobbying hard. they are seeing their entire market disrupted by airbnb and many cities are saying, you are going against regulations. new york claims that airbnb ifrts lodging laws, saying you're going to rent out robert e for less than 30 days, a tenant needs to the present. that seems to be what is against the grain. there are concerns. we don't know what the risks are in terms of what might come on

board in terms of money. at the moment, airbnb takes about 9% to 50% of the amount a property charges. if you have to give money to local cities, councils, governments, it could disrupt things for airbnb. >> the u.k. gourmet food retailer has long been a favorite of the queen. now it is trying to reach other royals like those in the middle east. it is opening its first international store in dubai. joining us now for a first on bloomberg is the ceo thank you very much for coming to talk to us. your first international venture. tell us, why dubai? trading for over 300 years. our goods travel the world. this christmas we supplied to over 112 different countries throughout the world. the middle east has always been a very important region. for a year now, we have been seeking opportunities.

we felt that dubai was a very important center. the second most important luxury retail center in the world after london. region.nticed to the after water, the second-most popular drink is tea. we thought the opportunity was too good to miss. >> do you dilute the brand? stores -- thenew new one in london of course. now, this international venture too. very important to us is to find an iconic site within downtown dubai. we are one of the very few retailers in dubai who have a standalone site adjacent to the dubai mall. it is a very prestigious

location. it will become a destination building in its own right. that wevery clear wouldn't go into a shopping mall and we wanted to have a location that would create its own sense of destination. >> are you changing your offering at all for the gulf region? are there things that you are stocking that you wouldn't stock in london? tell us how that thinking has been going. a retail perspective, absolutely not. our world-famous embers will feature significantly. honeyss, preserves and and chocolates. all the candied fruits and sweetmeats which are incredibly popular in this region. that is a very focused fortnum range that will be here. in addition to the retail, we have two hospitality offers.

in those areas, we have been able to the more experimental with product development. the menu will reflect the tastes and desires of both the local people in dubai and also the very significant number of visitors that come from across the entire world. i see dubai as a very important signpost towards piccadilly in london. the regional preference will be expressed through hospitality. >> looking at your business overall, you mentioned that the middle east has always been an important region of the world to you. many wealthy travelers coming through your store in london. i imagine you have your fair share of russian visits as well. given the geopolitical climate, do you have any recent intelligence on the sightings of russian tourists at fortnum?

>> we do indeed have russian visitors. they are our fifth most important international customer traveler. chinese are also very important in increasing numbers. the russians of course love tea and they hear about fortnum through the marketing we do in the region directly. russians are also coming to an important holiday destination. is actually aubai very safe place to do business. the exports, we are going to see more global travelers heading to dubai. fewer russians in your

london stores right now? >> not particularly. business is very buoyant. we are still growing in piccadilly, and double digits. where our london-based business has changed is we are receiving more domestic customers. i feel that fortnum is becoming more relevant to the smart folk of london and from all parts of the u.k. coming into london and much morenum on a frequent basis. >> thank you so much for joining us. enters the ceo of fortnum and mason's. >> right, one of the biggest sellers is said to be one of the original it banks. it was designed by sylvia fendi. she told bloomberg how she came up with it. >> everybody was crazy about

that special bag. it was kind of a fever. i am sylvia fendi and i am creative director at fendi. i am also the daughter of the founder of fendi. i really thought it was needed at the time. has a short strap. you where the bag under your arm like the french bag. there are many versions. i think today we have more than 1000 versions. i was so happy when i saw the baguette on saturday cigna park are. -- sarah jessica parker. it was kind of a fever.

some people are really in demand . >> pictures of leaders arriving in brussels. >> scheduled to the arriving. 7:42 in london. those pictures at the bottom of the screen. we are going to take a short break here on "countdown." ♪

>> it is time for "hot shots" a look at the most compelling images of the day. >> hi, welcome -- >> one of the stars at a robot exhibition. developers showed off robots of all shapes and sizes. the robotics industry is growing by 30% a year. that is driven largely by humanoids. trooper was

investigating an accident from the shoulder of u.s. interstate 80 when a truck hurls through the air, missing the officer narrowly. the video reminds motorists to use caution when driving by vehicles on the shoulder of the road. an emotional moment in the white house when 24 minority u.s. service members receive the medal of honor. they were identified following a congressionally mandated review that found that some u.s. servicemen were denied the country's highest recognition of valor because of past residents. -- past prejudice. welcome back to "countdown." >> let's take a look at our top corporate story, or one of our top corporate stories. we are looking at the read across from those nike numbers. >> it has been a theme for this week. foreign currency exposure. we have seen it for many

exposure -- many retailers. sees 45% of its sales outside the united states. the euro is strong, the pound is strong, the u.s. dollar is strong. when you convert sales out of the u.s. bernanke back into your home currency -- for nike back into your home currency, it hurts profits. they are not looking so good going forward. that has an immediate read across for a deed us. they are in the same sector. is ae does -- adidas company that we are going to be eyeing up. >> in the focus because of what nike had to say and because of the development in the ukraine story. both of those adding into our coverage. up, officials speak today on what jonathan ferro is calling the post fed presser presser. he will have some sense on that

and what the markets are watching for, next. ♪

>> welcome back. this is what is happening in brussels. officials arriving at day two of the eu summit. toterday they added 12 names their list of you russian and ukrainian asset freezes. the eu acting after the u.s. yesterday penalized 20 people. namedn business leaders

by the obama administration as having ties to russian vladimir putin. us,yan chilcote was telling those who have been named in the sanctions list seem to wear it as a medal of honor. businesses in the crosshairs of this -- some businesses you doing -- using twitter this morning to distance themselves from any action that president putin is taking. we continue to see dignitaries arriving. the european union foreign policy chief, we have seen her arrive already. black limousines continue to arrive, more eu leaders gathering for this summit. skewednda very much towards what is happening in crimea and russia. jonathan ferro is onset to talk about some of the macro themes that are gutting the markets. we should talk about this whole story developing in the russian markets.

we have seen some equity market reaction. >> you have the russian my sex -- micex down 3.5%. >> not quite as much as it fell last week. >> there is concern but it seems to be isolated. if you look at european futures, pretty much dead flat. dollar/ruble, barely moving on this. some speculation that russian companies are repatriating money from a broad. not much evidence of that right now. that.d data on >> goldman sachs was talking about capital outflows from russia, saying they were up 60% when you look at the first quarter of this year. some really complicated flows of money. >> people have been more concern about outflows. >> i read that the outflows in the first quarter could reach $70 billion, more than the entirety of last year.

that was roughly $60 billion. fed, what are you calling it? >> the post fed presser presser. we heard from janet yellen. everyone is calling it a slip. did she mean to say that rates will probably rise six months or so after qe ended? was it a slip? whoy we have jim bullard objected to that decision and we have got stein as well, a governor at the fomc and mr. fisher. that is their opportunity to set the record straight or just confuse us even more. look out for that. >> one of our guest said because the fed didn't respond within the first money for hours -- >> we would have heard already. was -- >> we have scheduled speakers. look for those. alan greenspan was a man that mastered what was called fed

speak. if you understood what i said, then i misspoke. that is paraphrasing what mr. greenspan used to say. was this a slip up i janet yellen? she has been at the fed since the 1990's. was it a slip? maybe, maybe not. wait for the minutes. >> you don't want to give too much information. that is the key. >> they are worried about moving markets. they used to like to lose -- to use language that would confuse everyone. maybe she will be more reserved when she talks next time. >> china, a theme for the markets. disappointing data out of china. >> we have pmi sunday night, monday morning. hsbc ratings, everybody will be watching that. readyige book shows what

much everybody has been saying, a slowdown in china. the chinese currency is weakening. a lot of people say the central bank would try to introduce some volatility. actually, that debate is still going on as to whether the chinese central bank is trying to engineer a weaker currency to help those exporters. today, chinese currency looking a little more resilient. if you look at the numbers, you saw its worst week for 20 years. only 1.2% but this is big for the chinese currency. what is going on there? they continue to guide that reference rate lower despite the fact that the point of the matter is, they are still guiding the guarantee lower. >> thank you very much. jonathan ferro with the mac you themes you need to be aware of. and "on the move" is next. they're going to be keeping an eye on adidas. they have been complaining about the strength of the euro. it seems currency movement is

very much a live story for european and global companies. let's leave you with some live pictures of eu leaders arriving in brussels. >> futures indicating a mixed start today. u.s. futures are up and not much of a reaction. ♪

>> welcome to "on the move." i am francine lacqua at bloomberg european tour is in london. we are just moments away from the start of european trading. our markets team has everything covered from companies to currencies. alex friedman joins us for the first half of the show. chiefthe global investment officer of ubs global management. jonathan ferro, hans nichols and ryan chilcote are standing by. kick off with you. what are futures doing? >> pretty mixed this morning.

the only reaction over in russia. the micex down about 3.5%. that is where the concern is. concerning their version of the beige book. down, that is one of our top stories. hans, you're watching adidas. >> we are looking at adidas, nike. it is an excuse to talk about shoes. it is also an excuse to talk about currency. both companies have had explosive growth outside their home markets. the euro is strong, the dollar is strong, that is hurting profits. that is what we are going to talk about. >> thank you so much. something that a lot of people do have. jon, if you look at the overall on thesea lot of folks new russia sanctions.