when >> closing in on crimea. russian lawmakers will vote today to annex the region. we are live in brussels as europe's leaders consider their response. >> twitter versus turkey, the social message service tells users to bypass efforts to shut down the service. >> we talked to the heart of the french as ms. dynasty. yannick bollore joins us shortly from paris. good morning to our viewers in

europe very good evening to our viewers in asia and good morning to those just waking up in the united states. i'm guy johnson. >> and i'm francine lacqua. >> coming up, how do you revitalize a century-old brand? francine has gone inside fendi. >> we have another exclusive interview for viewers in europe. the american ambassador to the u.k. joins us to talk about the crisis in the ukraine. >> russia says it is are paring retaliatory sanctions against the west after the eu and united states rod and their list of targets. we have all the angles covered on this story. >> jonathan ferro is on the market reaction.

ryan, let's kick it off with you. russian lawmakers are in the final stages of pushing ahead with annexing crimea. >> that is exactly right. i've been looking at some of the sanctions which target individuals. going through some of the personalities affected by the e eu and u.s. list. starting with the billionaire brothers are tidy -- arkady. his companies alone were worth about sixere rewarded billion dollars worth of contracts as part of the sochi games. he and his brother on the sanction list that the u.s. came out with before the eu came out with its list, also have interests in a bank called smp bank. this personal sanctions at point are affecting, perhaps in

a small way, the russian financial system at large. another name i would mention is the largest shareholder in a bank whose name means russia. this is a st. petersburg-based bank, the 17th largest in the country. yuri kovalchuk is on the list and so is the bank. it is the first time the united states has sanctioned a financial entity. rossiya has come out with a statement saying it will not be affected by this decision. if the bank requires any assistance, it will require -- it will provide assistance to the lender. the russian rail network,

state-controlled, london listed. interesting character who is also known president putting for a long time. sanctioned oneen the united states list. the sanctions are arty getting very personal. the u.s. and european union acted last night. they're going up the food chain trying to get associates much closer to president putting than before. putinser to president than before. >> at the moment, the meetings seem to be eliciting a more cautious response. >> he might try to. that depends on the events on the ground. quite clearly, while they wouldn't say it publicly, there is an understanding in the west, both here in the european union and in brussels, and in the u.s., that the annexation of crimea is a done deal. it can pretty much be written off at this point. any sanctions that they go for,

like economic sanctions, they said would be to punish president clinton and -- president routine and to keep him from going further into the eastern ukraine. if they want to discourage him from doing that -- president putin. and to keep her from going further into the eastern ukraine. >> ryan, we will leave it there. ryan chilcote joining us from brussels. >> donath and ferro is here to look at the market reaction. pharaoh is here to look at the market reaction. ferro is here to look at the market reaction. arepean equity markets actually higher today. investors are starting to talk

about this, that these sanctions are going to be targeted, they're going to be isolated and the potential for fallout right now is not as broad as was feared at the beginning of this. everyone is talking about one thing. is down about 40% year to date. let me tell you about one of the biggest fallers. company called nova tech -- thetek. has come under sanctions. >> let's talk more about that area what do we know about this guy? >> he is very close to vladimir routine -- routine -- vladimir putin. putin are steeped in russian culture.

this is hitting at the heart of president vladimir putin. sense of what he owns and how much these sanctions are hitting him. >> his fortune was valued at about $11 billion, it is now $8.4 billion. transferred ownership of his oil company to a business associate. he owns an oil transport business and a number of other smaller assets as well. -- the u.s.k about treasury suggests that president putin is somehow a beneficiary of this company. the company completely denied this. you said earlier that everyone

is linking president routine to various companies. he has a holding and gas prom -- -- gazprom. >> i suspect there is a lot of intelligence going on to make sure people understand the lie of the land. n on this one.h jo >> are you surprised? >> i am surprised. the statement clearly says that it was 44% owned. the remaining 12% was owned by numerous a senior level managers. that is publicly stated information. there is no proof of exactly what resident routine might have. >> this company has been extremely compromised by this suggestion. what are they going to do going

forward? who wants to deal with them? >> you don't put a statement like that out without having some kind of support. did you talk to the london ambassador on this? we have an exclusive interview with him later on. >> it will be interesting to know how much of that money is track and what level of understanding the authorities have, both in the u.k. and the united states, about the ultimate ownership. >> guy, thank you so much. have just had some details coming through. russia's upper house of parliament ratifies the crimean treaty. we will track this process as it works it way through the political structures of russia throughout the day. i suspect someone of a rather

senior position will be signing on a dotted line. leaked audio files kept cropping up on the site. hans nichols bring this the very latest very what is twitter's response -- what has twitter's response been? >> twitter is going to be aggressive very at a are saying tweed by sms. twitter has direct relationships with some of the mobile carriers in turkey. turkey is twitter's eighth a gift market, so they are pretty saturated there. -- erdogan asks twitter to take down some audio links. now.is how it stands right you can actually tweed by sms, you have some difficulty on some mobile networks to read your twitter feed, but if you are at your desktop, you can use a virtual private network for a

workaround. what this essentially does is make it more difficult for people to share information on the street, but there are workarounds as long as you can get to a desktop. it is the same thing twitter did in venezuela. he urged people to send direct tech's messages -- direct text messages and to treat that way. a we will be back with hans little bit later for more on this story. as thements in moscow political structure moves further towards the annexation of crimea. ryan. >> just within the last five minutes, the federation council, that is the upper house of the russian legislature, also known as the senate, has ratified russia's treaty with crimea, effectively including crimea as a russian territory. say, annexinguld crimea. all that remains is for president putin to put his signature on the treaty.

we can expect that any moment now. the nikkei the russian perspective of this moment reduces history in the making. russia already the largest country in the world. on december 25, 1991, the soviet union collapsed. president routine has called the loss of crime mia the most regrettable mistake of the 20th century. this is part of the plan to reconstitute, in some way if you will, the former soviet union. they have argued that crimea has always been part of russia. what is it going to do in terms of sanctions? they have already introduced their sanctions late last night third i think it is doubtful that they will go any further than the sanctions on russian officials that they have already announced. don't forget, this goes forward heard me of the g7 meeting earlier next week. president obama has already threatened if russia escalates in crimea and ukraine to ratchet up those sanctions. back to you.

>> thank you, ryan chilcote over there in brussels. >> conversation with a man at the center of the french business world. we're going to ask him about competing with giants. that interview up next. ♪

>> good morning, everybody. welcome back. you are watching "the pulse." --ertising company have us vas has maintained that the company is not for sale. >> bollore is no newcomer to the french business seen. gannett joins us from paris. great to have you -- yannick joins us from paris. we will kick it off with russia. ask you youro exposure to russia, but whether that puts a dampener on sentiment. if you don't know the situation and how the sanctions are going i imagined a company would spend less on advertising.

>> yes, i'm very happy to be with you this morning. it is an important country for clients. what we can say is that the confirmation has not impacted yet. the only impact will be about rublefect, because the has lost more than 20% recently. we have to see and to stay concerned about what will happen. it is very much localized to russia. times, in terms of geopolitics right now and the advertising sector itself, yannick. you said this morning that the company is not going to be acquired, but so much speculation surrounding your business post what has been happening in the sector.

the me through how you see landscape? >> thank you for that. we are in a great situation. profit marginr for 2013. it eighth year in a row that has increased. we have more than 1.5 million euros liquidity. we are doing very well on our otherd we can consider companies. what will be an acquisition. today it should come back to basics. the advertising a -- the advertising industry is very easy.

is any company that will bring scale or relevant knowledge? -- havas brings social expertise. we are thinking about investing in new countries. to be honest, we are doing very well on our own. we are in a very wealthy financial situation, so it is not an emergency. >> is it not technological companies that you are looking at? you said one of the things you would like to strengthen his technological expertise. is doingand that havas very well on its own, but when you look at the valuations and the stuff that is actually coming out there and being

bought by facebook, are you concerned about the valuations? or do you want to acquire one of these very cool little companies that we are all using everyday? interesting with the valuation. when you look at what is up, it is a 50 million euro company funnyas been acquired for million dollars. i'm not sure i could sell my company for these amounts. would be interested in this space or you would? would you be looking at buying something in the technological space? where?so, >> yes, we are looking at the technological space. we are a strong partner to the people from the valley. we all spend a lot of time in the west coast. we have created some good initiative, for instance we have

created a lab called 18 18. they will have 18 months ahead in all types of innovation. we have created a lab called wood. would -- called sili we have lots of interest to other technology co. -- to technological companies that would bring scale. people.ooking to hire vas is at the top of its class and technological innovation. >> yannick, stay with us. you will appreciate this. we will take an advertising break. it will last a couple of minutes, pay some bills. we will see in a couple of minutes. we will see in a couple of minutes.

you in a couple of minutes. ♪

>> yannick, good to have you on the program. thank you for sticking around. we were talking about possible expansion plans and pitfalls. what keeps you up at night? is there something you are ms.ied about because it is may be more vulnerable to the

emerging market? when you look at the world economy, what is your concern right now for havas ? we have seen the emerging of latin america and the emerging of asia. i think tomorrow it will be the emerging of africa. havas has managed perfectly well the expansion in latin america. we are the leader in most of the country. in mexico and brazil we have the biggest, edition. -- the biggest competition. the situation is maybe more contrasted. we have more room for growth there. have great people and great clients. i am thinking of singapore. but australia we are one of the market leaders. i think we have the chance to

live in a world that is still growing, not in the same place in every part of the world. obviously, the united states are going for -- are growing very fast. asia will nearly be 10% this year if you consider in terms of aspect. am lookingar, i forward to the growth of the advertising economy. >> yannick, content is said to be king, but content and advertising, the lines seem to be increasingly blurred. would it make sense to have a company that encompasses content and advertising? >> i think your question is relevant. iwoodlked about the sil initiative. key component for drive.

in the future, one of the options will not only be to horizontalinto consolidation, but maybe to have some space and invest time and money to think about content third we have done that in mexico and france. in the u.s. we just hired someone. content will be more and more key. in innovation and technology, something that we are really looking at with great interest. there is a company in france that comes to mind. vivendi? >> yes, that rings a bell. >> do think there would be any logic there? havas used to be owned

by vivendi. today, we are in an interesting situation because when the bollore group decided to invest in the communications business, we started with havas. today, havas and vivendi are the same largest shareholders. in june, -- should be appointed president of vivendi. we arty have strong relationship with vivendi. we are arty doing commercials strongwe already have relationship with vivendi. we are already doing commercials sfr. our agenda is done.

are one hundred 50% committed to adapt our organization to the new paradigm of communication. if you ask the people from ,ivendi in the coming weeks they have more important things to deal with. >> at the moment, there something that can't be ruled out, yannick. maybe five or six years down the line? >> you never know what will happen. havas is working well on its own. we are most global. we are not vague or fat. we are the fittest group. it is important to be fit when governments are changing. closersame time, to work with content companies, to have

an expertise about audiovisual content, about music, could make sense. there is nothing that we're looking at seriously right now. in 10 years, honestly, i don't know what will happen. the half-life of technology seems to be coming in. just to wrap things up a little bit, clearly, omni con is omnicom -- have you had conversations going about maybe taking some of those clients? >> to be honest with you, the merger -- the merger is not official as yet. china did not yet get clearance. much moreion is tentative. the two main competition we have was emirates and another

company in brazil. in both cases havas has won them. has not been a key element. for us, to be honest, i am not that worried. we have a lot of talent opportunities because of industries made by women and men. i'm sure it will create opportunity. i don't want to be too optimistic. i prefer to remain cautious. as you say, it could create opportunities, yes. >> all right, yannick. we hope to see you very soon here in london. just needet you up with the bloomberg top headlines. russia's upper house of parliament has passed how santos no changes for crimea.

>> at the same time, eu leaders are meeting in brussels along with the u.s. to broaden sanctions against russia. the british prime minister says the eu needs to speak with a clear and united voice. >> i also said it was important to send a clear message that further destabilization in the be followed by further wide-ranging messages -- wide-ranging measures. new measures. the search for the missing malaysian jet will continue shortly. a satellite stationed over the equator picked up messages. engineers say that puts the plane in a direct class -- in a direct path.

that meet take you to it now. , toadies and gentlemen start the press conferences [indiscernible] >> malaysia continues to work out the details involved in the search for the airplane. objection of the information released by australia yesterday is indeed authentic. youhe meantime, we are can -- we are continuing the search and rescue operation in the northern and southern hemispheres. efforts southwest of

birth continue. china has deployed five ships and shipborne helicopters. they were also searching in the southern corridor. this morning, i spoke with the commissioner from the united kingdom. echo is arty heading toward

the southern indian ocean to support the search efforts. u.k. will be providing us with the assist of assets that can be deployed if needed. we also confirmed that, in addition to this technical support provided so far, it stands ready for special search and investigative assistance once more information about the known. m h 370 becomes i have also been in touch with the french delegation. man who led the investigation into air france 447 crash. withs agreed to assist us his considerable experience and expertise. i will also be speaking to the u.s. secretary of defense at

21:15 tonight to request further assets to help with the search and rescue efforts, including removing items for ocean salvage. they have not found any trace yet of m h 370. on the police investigation, the ukraine police have confirmed that the background checks on the ukrainian passengers have come back clear. i would like to discuss the data.sing of the master the investigation team received the complete raw satellite data. data is not normally used in investigation of this sort. it is only because we have so

little other information to go on. unusual ands difficult situation that the data is being used. immediately disgusted with the u.s. team how this information might be used. the u.s. team and investigation it no further processing would be needed before it could be used. teams agreed by the u.s. that further refinement was needed, so the data was again sent back to the u.s.. the results were received at approximately 2:30 on friday, the 14th of march. the u.k. a aib, who had also independently,

conferred with hours. the prime minister was briefed a.m.e information at 8:00 on saturday march 15. search and rescue operations were immediately shifted to the northern and southern corridors. wekuala lumpur held a briefing. it was to update families on the latest developments and to answer questions and clear up any confusion. the meeting was well attended by family members from different nature -- different nations. a high-level delegation including representatives from malaysian airlines, the department of civil aviation, thethe ministry of defense, ministry of foreign affairs of the national security council

also attended the meeting. we had a very constructive and frank discussion. although we answered most of the questions they raised, we could not answer them all. these questions will continue, family's convenience as long as they want them. we also intend to listen to the voices of family members. a special envoy to china will be cord knitting -- from now on. with familymet members for 3.5 hours. ladies and gentlemen, this continues to be a multinational effort coordinated by malaysia and involving dozens of countries from around the world. we continue to receive offers of assistance, including specialist

assistance that can help with the rescue. we welcome all assistance that we continued to follow every credible lead. you have been listening to the latest briefing regarding mh370.sing flight there'll be a conversation later on for the malaysia asking for more assistance. expect they are still asking that they used as a staging base for the northern corridor that they are searching in. >> we will keep on top of this breaking news and continue to follow the news conference. we will be back in just a couple of minutes.

>> welcome back. now it is time for another bloomberg exclusive. thene is often seen as fashion capital of italy. -- one luxury company calls rome home, that is sandy. 1925, two italians opened a fur and leather shop in rome. adelenames, eduardo and watch, ther their

company grew to be a multinational luxury brand. they had some help from this man -- karl lagerfeld. in 1965 as a young designer he joined fendi. he helped them with new, innovative techniques. sandy to create their most successful product. the baguette bag. four years later, the biggest change at fendi in its history. --nch luxury powerhouse about a 90% stake in the company. with the younger generation in the ranks, the company is still very much a family affair. its heritage is strong. ceo.t down with fendi's

he talked about his big ambitions for the company. >> we are working on the three elements it makes a company successful. container andhe the communication, which is the wings fly.makes the company invests a lot of money in the stores. when you come into a store, you have a feel. >> are you selling the dream? >> is selling a lifestyle and the dream and your way of seeing taste today. we want to give them a feel of your taste. >> what are you trying to achieve? what audience are you trying to capture? >> i think we have a great additional clientele. we are trying to be appealing to a younger type of customer. our range of prices is quite broad. we appeal with accessories.

we made these little furry monsters that you attach to your bag. pricewiseof object is and as it object has a certain type of appeal. for is the climax of the luxury chain. >> how do you marry technology with luxury online. ? i lose that kind of edge, that high-end luxurious aspect. >> presence is no longer an issue. everything is immediately everywhere online. we canot a field that

afford to not have any more. you are transparent in what you do. to which prices your sold, the assortment. this is healthy and in a way it brings up the level of competition to an even more fierce level. amazing, when you speak to the ceo, he talked about history and karl lagerfeld. he has five sisters. they are the daughters of the founders. they each had one thing they were good at. one was marketing, the other was a seamstress, the third one took care of first. >> it is slightly cancel and whatl or cinderella -- >> it is great, it is how you run a company, right? >> getting along is the crucial thing. >> let's move on.

here to explain what it is going on is matt campbell. our clays is getting hurt. this is about sprint and alibaba . take me through this. this is quite a thicket we have to work our way through. this involves billionaires and investment banks and international ipos. this is a bit complicated, so stay with me. sprint was bought by softbank last year. there was a counter. from dish network. worked with dish. this upset softbank's chief also ownsofficer who a big chunk of alibaba, which is now going public in new york. ,hat seems to have happened according to people familiar is that massey,

song said his partners will not work with barclays. it looks like our clays will be one of the few investment banks will be not part of the ipo. that is a two plus billion dollar ipo. >> this is not a great time for barclays. they're going to lose out on this. anyway they can grow this one back? >> it is not a great situation for them. there's been lots of bad news in the barclays investment bank heard one of the things they have is that they're not going to get alibaba, they may as well get alibaba us. have been pitching for the ipo of j.d..com, which is another chinese commerce site. our clays will survive. it is a strong investment bank. it does show you a little bit of how some of these feuds do take shape. >> you were telling me he wants to -- he wants sprint or intbank to be the biggest

500 years. investment banks have conflict among clients all the time. managing those conflicts is one of the most complex things they have to do. this kind of personal vendetta, assuming this reporting is accurate, which of course it is, is quite unusual. veryhas a lot to do with a unusual chief executive. >> he likes to fight. he absolutely likes to fight and that has been made clear over the last few weeks. >> what a character. matt, thank you so much. >> you have all heard about wearable tech, but what about wearable tech for dogs. that is exactly what san francisco startup whistle is doing. emily chang checks it out. >> there is the pebble watch and the thick. and then there is whistle. for your dog.

>> is all about communication between pet owners and their pets. we want them to bridge the gap in understanding. >> here's how it works. attach is disk to fighters collar. it collects all sorts of data. all sent to the whistle monitor activity at. >> unlike to keep her as healthy as it possibly can. it is like a fit for dogs. >> the cost? about $130. it turns out dogs are not just man's best friend, they're also one of man's biggest expensive. americans spent an estimated $55 billion on their pets. then, there is the ripple effect. pet owners can use whistle to see if their dog walker took a shorter walk.

>> when i get to go back in and put in a picture from that day, it really illustrates the whole story. >> whistle just inked a deal with retailer petsmart for exclusive rights to sell the gadget area >> one of the reason so many national retailers are so excited as they want to bring in an apple or a google to their stores. alreadyhouseholds spending more than $1600 a year on their friends, whistle can find themselves running with the big dogs sooner than expected. >> i have only one word for the -- barclays.ackage >> still to come, another blue -- another bloomberg exclusive. u.k. and ukraine have just signed an agreement on closer ties with europe. has been annexed. we will talk to him next.

♪

>> now for a look at what we are watching today. caroline, let's kick it off with you. we arty had that malaysian air briefing and know that we are nowhere coast of finding the plane. >> false leads, conflicting information goes on. we do know that they are still looking for two pieces of debris.

the australian maritime safety puttingy are still hopes on trying to find some identification of what has gone wrong. towe are getting very close the annexation of crimea. we are looking for a response out of brussels. >> yeah, let me give you two things. one has just happened. ukraine has just signed a trade deal with the eu leaders. the very same trade deal that four months ago the ousted resident declined to sign, sparking those violent clashes in kiev. the russian senate has just voted for the annexation of crimea. as soon as that happens, the russians will consider it a done deal, despite the fact that no one plans to recognize it as part of russia. >> ryan, thank you so much. we have an exclusive interview

coming up for our interview -- for our european interviews. barzun to ask matthew about the embassy here in london. ♪

>> america and europe go in search of a coordinated set of sanctions to punish russia. russia bars boehner, reid,

mccain has six others. the search continues for the malaysia air jet grid -- jet. and ben are spending billions on bow ties. good morning. it is "bloomberg surveillance. " joining me is scarlet fu and olivia sterns. olivia has the morning brief. fitz ratings raised our outlook from negative to stable. negative, raised to citing the sanctions. we do have some basketball. coming out is tiffany earnings. darden is under review. everyone wants to see what will happen with the spinoff of red robin. president obama will be meeting with tech ceos.