>> the ukraine foreign minister warns that the risk of war with russia is growing. obama and other leaders are gathering to discuss the crisis. >> going towards recession. we are in moscow with reaction from the business community. sees the slowdown deepened. ♪ barton.k >> i am anna edwards.

it is 6:00 in london. it is monday morning. let's get to the top stories. the crisis in the ukraine is at the top of the agenda for president obama and the leaders of the other g7 countries. is on the first of his six-day trip through europe and the middle east. >> he has already arrived and gave an interview to a dutch paper. he repeated his argument and his strategy that there will be incremental sanctions for the russians if they do not return to the international world order. this is the challenge for the summit. they want to make sure that obama's ambition and the scope of the sanctions are in line. the impact would be different. obama is aware that he needs to bring everybody together. there will be a g7 summits and they will have a single voice

coming from both united states, canada, the g7 countries, and the european union. we saw prime minister harper in kiev. expect that we cannot the russian status quo in crimea. we heard bellicose language and bellicose warnings from a u.s. general. he says that this a massing of troops along the border with ukraine and moldova is a concern. he says there is a sizable presence and we have to be positioned differently and be more ready. unfold in a series of events. the president will meet with his chinese counterpart later this morning and this evening, the emergency summit and the group of seven. not the group of eight. >> it is the g7 and not the g-8.

russia is not represented. what do we read into that? >> they do not want to be part of the international framework and the international architecture. nuclearere for a security summit. president obama had long discussions with the president. russians decided to come and they are clearly snubbing this. they do not want to take part in these international discussions. what's thank you very much. russian banks are warning that sanctions could push them towards a recession. ryan chilcote is on the ground. we are looking at the impact of sanctions this morning. >> good morning. what start with the events that took place over the weekend with the airbase being taken over by russian forces. they are cementing their grip over the ukrainian peninsula. now, it is part of russia.

-- following this, officials complained of our and cuttinger cuts power intentionally. they said the situation in the crimea is a sideshow. these forces are amassing east of the border and the ukraine was vocal in saying that they were concerned that they may move troops into the ukraine. the former heavyweight tossing champion and now politician running for the ukrainian presidency, vitali klitschko. the president of russia, kiev is putin said that

an old russian city. crimea is part of russia. >> the kremlin maintains that they have no intention to enter eastern ukraine. one thing that is clear is that if there is any troops there, that would trigger sanctions. that is what the obama administration and european leaders have said. >> with crimea under russian control, what does that mean for sanctions? >> it is interesting. you have the russian foreign minister on their way to the hate for talks with secretary kerry and those will be important. the views the economy in difficult shape. we have russian bank saying that the economy, even with limited sanctions, they are being pushed into a recession. they came out with a note that said that they expect a shrink

over the next two quarters. all you do is see that the currency has fallen 10% since the beginning of the year and it is the second worst decline in emerging markets after argentina. this is something we're looking at. the sanctions have been targeted so far and what it can mean for russia, we will buy into that. i will give an indication of what he thinks. he says that u.s. policy has put us up a creek without a paddle. >> we will see you later. do not miss that exclusive interview. ryan chilcote will have that later for you with alexander. owns the evening standard. >> president obama heads to the hague to meet with g7 leaders. they will discuss how sanctions will affect business interest in

russia. cranny.is manus what is obama hoping to achieve their? -- there? >> multinational. theu.s. steps forward with number of individuals they're putting blockades around and they want to get the g7 to be shoulder to shoulder with united states of america. withnts to garner support the united kingdom and germany. he wants to say that we are ready to be there with you for sanctions that we are going to take. >> what is the risk for europe? >> financials and banking. ryan touched on this. they have $50 billion with exposure in terms of russia and austria. foreign direct investment is very important and europe has three percent of foreign direct

investment and exports could drop 2.5%. 100% ofis dependent on the natural gas. they are in a process of building in a process of building a military training camp for the germans and on the seventh of march, rye mcdonald said that the budget has changed. seeingground, you are economic impact in terms of sanctions and the threat of being associated with russia. >> is going to affect strategy, isn't it? that is on the european side. what about american businesses? second-biggest exploratory base. they have a deal with the ukraine for drilling in the black sea and boeing is

concerned about the overall global impact. you can talk about the russian currency and the economic contractions. what impact that might have on an economic base? sachs has been currying favor for a number of years and they are an advisory part of this panel. they drive the reputation of russia. 50 batches and one million customers. they are the number for overseas bank in russia. they have a high stake reputation. it is the country rest. -- risk. reduce profitability and official risk. it is not as important as the sanctions. obama goesness when to the g-8 and you run the issue of reputation. >> to get more on the crisis and

the implications, we have been law -- benoit. recession?acing a >> let suffer get that before the crisis broke out the macro was deteriorating sharply. standards, it is subpar. depending on the potential severe,s, and those of it could swing into negative territory. that is not far to go. >> we would not be surprised if we saw a russia in recession during 2014. >> it will be driven by whether there are tough sanctions in place or not. yes. near zerotrack to

growth. >> last week was a slight respite in the sanctions. marketsian stock recovered losses from a big decline. openuch further -- such an decline of is the the ruble and the stock market? >> it has been substantial, i would say. i'm observing the central bank try to make a bit more noise to contain risk. i find that reassuring and at this point, russian assets are driven by geopolitics. what happened last week was a reaction to vladimir putin's speech. >> it depends on how far the sanctions go, how negative

russian assets go. we see capital outflow at $1 billion this year. put that into context. is that a large amount for the russian economy to lose? >> it is large, not catastrophic. thehe end of the day, russian financial picture is rocksolid. we are not talking about the ukraine or argentina. let's put things into perspective. russiansay that the have a huge tendency to experience large capital outflows. you will seen and where the capital flows go. >> i'm not sure the property market in london needs more russian money. .> it will be a big number

i was interested in picking up that. january and february, $35 billion of outflow in those two months alone. that is quite big. >> bigger than last year. we're talking about 60 billion or 70 billion. scenarioon is a benign . it could be worse. >> thank you. >> for a preview of what is coming up on the show, let's bring in zen. .- zeb >> it is a closer look economic report. a report andng many are questioning in china will reach the 7.5% growth target. the number supply -- surprise.

not in a way they want to see. >> will track the impact on sanctions on russian business. ryan chilcote will speak to a capital and of aton a former head of merrill lynch in russia.

>> welcome back. impact ofe on the russian sanctions, let's get back to moscow. ryan is there with the exclusive today. >> yes. i am joined by bernie. let me tell you about him. he ran merrill lynch here for decades. we can talk about that and he is an entrepreneur in his own right . he has his hand in a number of russian businesses. he sits on the board of a ton capital -- aton capital.

he is discussing the limited sanctions that we have and the prospect of more sanctions. the first question is, how serious? you have been here over 20 years. how serious is the situation? we have seen a number of crises over the years. >> this is more threatening because it is political. business has limited influence politics. there is a degree of unpredictability in politics that business people are nervous off. we have a political context where there is a release of a strong nationalism that was not part of -- not a visible part of the political scene until a few weeks ago. you also have russia, for better or worse, challenging the prevailing status quo in the world and in europe for the last

25 years. this means that the economic consequences are much more difficult to predict and it means that business planning is subject to almost impenetrable variables. we are all guessing and that means that the impact on markets and on the russian economy, i am afraid, will be very dire. everybody is trying to get their head around the situation. >> everybody is scenario planning and trying to imagine what the next step is and what is the worst that could happen here. worstou think about the that could happen, you start thinking about troops and people in close proximity with arms who are not happy with each other. -- be would this affect on the uncertainty -- russian business -- beyond the

uncertainty, russian business? >> russian exporters are not trying to make products that are competitive. they are not going to get a earnings.xport we saw an increase in russian exports due to a weaker ruble. in the short term, you have people with money putting off very important investment decisions and they're putting off these investment decisions until the crisis reaches an equilibrium that people can understand and believe. i do not see an equilibrium on the horizon. to be talking a cross purposes. for business people, that is a challenging situation. what's with individual sanctions and one bank that has been sanctioned. -- >> we have individual

sanctions and one bank that has been sanctioned. cards stoppingt service. obviously, upsetting people in moscow and the kremlin. is that meaningful? >> sure. going on behind the scenes, you have people who are not involved asking whations their company should be doing and what decisions they should be making to protect their shareholders and their business. in an environment that is as fast-moving as this and, frankly speaking, business does not have a look into the decision process, these are tough calls to make and you tend to make the conservative decision that slows and stops investment. some of the actions by visa and mastercard were versed. it is almost comical.

on the other hand, if you are subject to the sanctions by a company that is trying to do the right thing, what kind of business relationship we would have going forward? >> that is the view from bernie, who has been here for 21 years. he is concerned about the uncertainty of the situation that we are in right now. >> thank you. ryan will be with us in 10 minutes. but we are taking a short break on countdown and we come back, we have a sentiment reading for chinese manufacturing data. we will get that. what will it mean for emerging markets?

>> welcome back. >> let's get back. we have some more disappointing numbers. some economists are announcing that we are seeing a loosening from chinese authorities. >> the chinese authorities are going to do something. they will have to respond. the story will be more pronounced and they clearly have on theated something

part of the authorities. >> talk to me about turkey. there are parliamentary you ares next year positive on turkish assets. why is that? thaterybody understands political risk is if you went .ack fundamentals are pretty good right now. the overall picture looks good. >> they do very much for joining

us. we appreciate it. -- thank you very much for joining us. we appreciate it. >> there are local elections in turkey and the prime minister has banned twitter. that may not be the last site to be banned.

>> welcome back. >> books go to manus cranny. >> we concentrate on a new service coming out of china. it missed estimates. you can see the dollar yen movingand you have it higher here. you have a meeting going on in the next two hours. a two percent target for inflation. leverage funds are in a sure position and that is the most in seven weeks. so, a weaker number and the aussie dollar is on the move. getcan see that we

estimates coming out and some resistance in the market. that is a 200 day moving average. they are the least aeration on the aussie dollar since october 29. >> these are the top headlines today. western nations are expecting growth and a troop buildup in the border of the ukraine. leaders are gathering to discuss the crisis. barack obama is seeking to mobilize opposition to the russian incursion. there are five more bodies found on sunday following a massive landslide. the washington governor as a squaree scene mile of total devastation. historicfar right made gains in municipal elections.

they won their first mayoral seat since 1995. the socialist party lost ground. results call for the governing left and right to stop the anti-immigration advance. >> more objects have been spotted in the indian ocean in the area with the missing malaysia . let's get details on the new images. satellite has object.ed an no size was given for the object spotted. is a hundred 50 kilometers north of the area that is being searched by airplane. a second image was taken by the chinese satellite.

this was closer to the area where the object was initially spotted towards the end of last week. it is 120 kilometers from where the object was first seen. it seems to match up. the object is 42 meters long and 13 meters wide. that is consistent with a size of a bowling. encouraging and it is just a clue. we are very short on clues. however, more assets are being deployed to the area. sunday, eight airplanes covered an area of 59,000 square kilometers. more arrive by the day. the first australian ship has arrived. there are chinese vessels on the way. they were dispatched.

they have longer range and planes are out there. theyuld be that encountered difficulties with the weather. there are reports that a cyclone may be forming in the indian ocean. it will make a difficult task even harder. paul allen, bloomberg. >> chinese manufacturing, according to implement very measure. -- a preliminary measure. >> it certainly did. weakening formber the fifth straight month. the index is considered to be a flash pmi and is released by a kiss bce. it is regarded as a key barometer on chinese economy. the official beta comes out

later and the early data gives us a clue as to the health of the economy. in the meantime, we have chinese leaders. we have chinese stocks rebounding and there is a questioning of the weakening policy pullingto back on stimulus. we watching this closely. ofs number is representative what manufacturers are thinking and it shows that they are retrenching their readings. the prior reading is 38.5. let us recall that any number -- any3 -- indicates number below 50 indicates contraction. it is curious. you would expect a deep selloff. the only thing we saw was a

modest dip in a shanghai composite. the numbers were released and the aussie dollar took a decline. the composite is at one percent and the hang seng is moving. the aussie dollar is losing. this is an earnings report. is buoyingp and it stocks. it is leading investors to take this one with a grain of salt. we will see how beijing response. >> thank you. >> we will stick with the manufacturing scene. following the chinese pmi numbers, europe has a manufacturing sector. let's talk to david tweed. is the situation in the ukraine weighing on these numbers? >> it could be. it is too early. we expect a slight slowdown in the expansion and the place to look for any reaction to what is

happening in the ukraine is in the business confidence numbers. we have the most important one in europe coming up in germany and watch out for those. it is interesting to look at what happened when consumer confidence rose back to levels that it was in 2007. that was before the financial crisis. we have numbers coming up for germany and france. thisare having a look at and it is expected to be under 50. it indicates contraction in manufacturing and services. in germany, we spec to see the economy looking pretty robust with numbers well above the 50 level. they will be added at half past eight. .e have the eurozone at 9:00 i will give a plug to a book here. a bloomberg economist once to

talk to us regularly and he is writing something called the traders guide to the euro area and economic statistics. it is a great book to help you get into the details of the pmi's. those are coming up today. >> thank you very much. david tweed was joining us. >> a week to go before the elections in turkey. the prime minister has extended a ban on twitter. our middle east editor has been watching the developments. to block thoseg ways around the bands. >> that is right. they are looking to ban twitter. there are our tweets that taunted the prime minister and his government. there are links and recordings that show how he is involved in this corruption scandal. this has not worked. that was a google dns

allows you to forward the internet into thinking that you are somewhere else. many turks were using that. the government blocks that. the prime minister said that twitter has not been shutting down those accounts. that is despite warnings. have shakenfacebook families at their roots. twitter, itself, has told users that they can send a text message to get their tweets up online. there are things like virtual private networks and things like ass, like they donkey, that can put you somewhere else.

you can also find similar obstacles. >> is there any sense that the the primeffect minister's party in the local elections? a broaderart of corruption scandal that has hurt his popularity. one opinion poll shows that his approval rating has dropped to 44%. other polls suggest that his party could do better in the local elections than the 39% of the vote that they got last time. the prime minister is looking to use the elections as a springboard towards presidential elections later in this year. we have seen signs of instability in turkey and violent clashes between protesters against the government that relate to the corruption scandal and this has taken a call on the markets.

plungem the turkish lira against the u.s. dollar and we have seen stocks and bonds take a hit. will be looking for more stability. looking for more stability. there is value if you are willing to take a risk. >> exactly. but another story that we are following -- but another story that we are following is -- >> another store that we are following is turkey shooting down a syrian airplane in their airspace. it briefly penetrated one kilometer into their airspace. the syrian plane violated their airspace. and shut f-16 took off it down. militaryse, the syrian officials -- >> on countdown, the smart

energy management system that claims they can save their users 200 pounds a year. the founder joins us

it is tremendously disappointing that the government secretly did all of this. you cannot have a democracy if they are not protecting users from the government. >> that was the google cofounder and ceo talking about the u.s. government surveillance program on charlie rose. you can watch that interview tonight on bloomberg. it is time for the company news. madison square garden is buying a stake in tribeca. investment values them at $45 billion. is cofounder of tribeca robert deniro. is trying to sell thier music channel.

it would spark offers from jennifer lopez. new film, divergence, top sales over the weekend. youngbased on a popular adult novel like twilight and the hunger games. welcome back. >> i am mark barton. managingee users energy consumption in the smart way. , all with aingm single device. we are joined now. thank you for joining us. tell us how it works. >> a consists of a home that you use in your home and you can control electrical devices with a flick of a switch.

given can tap heating schedules by the telephone. can set up heating schedules by the telephone. there is a light switch and you use it. >> what is the cost structure? >> we saw a set of packages that start at 250 pounds. are each 50 pounds each. sayou estimate that people 200 pounds on average. in the first year, you make no money. >> it is an 18 month return. there is research that shows that you can say 13% on this device and get a return of 120 pounds in 18 months. >> your devices are designed to control more than the thermostat. smoke alarms.

inwe started selling it november. >> it is available. >> we are selling standard products that are surrounded by other manufacturers and u.k.. there is a simple installation process for the consumer. the managing schedule and so on. >> are you focusing on what you will do with all the extra uncover?on you what will you do with all the information you get? what that is an important question and privacy is important. data to helpthe people understand what their energy consumption as. we measure energy consumption and give you back as much of that data. >> do you sell it to third parties?

>> will be inundated with e-mails as marc >> there is no intention to sell that data at the moment. we recommend how to save energy. our kitchen has to lights. data. analyze that >> you can monitor every household member usage. >> yes. i have set this up for my children. >> energy savings. >> interesting. you put a great deal of emphasis on design and that is clear. you look at the website. everything is about that.

moment, the innovation is based around the consumer. that is a good-looking piece of hardware and i think we will look at hardware development. >> your background is the energy savings. motivation for your business? >> i was 15 years old. my parents were leaving tryingion on and i was to help. that was my original impetus for the product. my background is in engineering and telecoms. space?credit is the

>> it is crowded. there are a number of competitors. there are proprietary solutions that come from one provider. down fromne supporting a large branch of manufacturing hardware. >> it is heating up, he says. thank you for joining us. it was great to hear from you today. and ceo. key founder >> challenging the winery. that is next.

>> welcome back. caroline is here. let's start. >> hello. you know i'm a big fan of newspapers. i don't know. --y did me a sense of what they give me a sense of things. on the other side, there is interesting insight into german society. this is a story about a man who

is not obeying the rules. he has a rooster. the has been in a fight over the rooster. it is too loud. to give you an indication, it crows at 100 decibels. that is the equivalent of a jackhammer going off. suburban-looking village that is not far away from here. bases -- he is facing prison or a 25,000 euro fine. on the side of the people in the village, this rooster should be in a pot somewhere. can you imagine 100 decibels every morning? >> that is a harsh fate. thank you very much.

do you like sparkling wine with your chicken? this is about the gourmet industry in the united kingdom. we want to go big on this. and ais a new research masters in studying. otherwise. -- this is another one in a region of sussex. it is funded by a vineyard in the south. >> yeah. wine. that.husiastic about let's talk about a good story in the guardian. areoup of sardinians arguing that sardinia should be sold to switzerland. it is a complicated story. they are unhappy and they would be better with the swiss.

3, barcelona 4. >> the second hour of countdown continues after a short break. .

>> ukraine's foreign minister said at the risk of war with russia is going on last leaders gather to discuss the crisis. >> western sanctions. ryan chilcote is in moscow. manufacturing industry weakens for a second straight month as the nation's slowdown deepens. >> welcome back to "countdown." i am mark barton. >> i am anna edwards. this monday morning, the second

hour of the program. the topis in ukraine is of the agenda for president obama. obama arrived for the first leg of his 60 day trip through europe and the middle east. our international correspondent is in hague. he has details. land indent obama will a few hours but his words have already landed. he gave an interview to a local publication where he warned of increased sanctions against russia. he is outlining the sanctions trying to bring the europeans along to get the tone right to not go too far because of their is a recognition from obama and europe that if you go too far, you could cripple the global economy. here is what the president said if russia continues on the path, the sanctions and the pressures on russian economy and the diplomatic situation will only

increase. this is the basic choice that russia will have to make. there was a realization that the u.s. could go further and a european union could go further but has to be cognizant of the facts not on russian economy but the global economy. the challenge for obama and his g-7 counterparts on how far to press with sanctions. a g-7 meeting. there are other conversation going on around the nuclear industry. there is no russian delegation there. >> they simply did not want to play this time around. what we have is a third nuclear summit. on the sideline, obama made an ad hoc call it had an emergency meeting on the g-7 which would be later tonight. not to the g-8 so russia will not be a part. it is something the russians had attended in the past and is an international foru to reduce

the number of weapons. they had a variety of reason why they are not here. g-7 looks a lot more like the g-7 than the g-8 of old. bucks thank you very much. hans nichols. president obama will be addressing the hague later and we will bring you the latest from that. are warninganks western sanctions could push russia toward a recession. ryan chilcote is on the ground look at the impact. before we talk about the business angle, let's start with you banks in ukraine. what is the latest? >> in the second biggest event in crimea was the event that russia took over what was the ukrainian a peninsula that is now part of russia at least as far as russians are concerned. that was the last pocket of

resistance. power cutsreports of and crimea. officials blaming ukraine for cutting power to blackmail them. crimea depends on russia for power and water. people are saying what is happening is a sideshow now. the real issue is what will happen next in the east of the ukraine? we have tens of thousands of russian troops. have said they believe russia may go there next. i caught up with a man who reigned supreme in the ring for years and is now running for the presidency in ukraine and i asked him what he thought russia might want in its neighbor to the west. have a listen. >> the russians want to -- [indiscernible] sayingsident of russia kiev is old russian city.

crimea is russia. it is part of russia. in the history also. >> the kremlin has said it has no intention to go into eastern ukraine despite the fact the u.s. a ukraine officials are warning they think that could be next. one thing is clear, european leaders and the united states have said that should russia sent its forces into eastern ukraine, that would prompt economic sanctions. we have individual sanctions. we'll see in a russian bank sanctioned and economic would be ratcheting up of the pressure on resident putin. crimea under russian patrol, does a mean of sanctions have subsided? what is your reading? >> it is like a lull. intossia does enter

ukraine, we would get this response from western leaders. as you were saying, the issue right now is the russian economy. we have the russian foreign minister heading to hague. we have several banks warning the russian economy is already being push does far into recession. theye coming out saying see the russian economy shrinking over the next two quarters. you walked on the street and you see the exchange points. the russian currency has almost fell 10% this year. one of the biggest declines after argentina. the real issue is the sanctions so far, no big deal perhaps. the concern now is nobody know what vladimir putin will do next and effect that will have. that uncertainty is having a huge impact on business. i would have alexander, the former billionaire and owner, we will talk about russia and what it means for russian business.

crimea, one of the bigs and is in crimea. putin, he's had his run-ins with the russian president before. that's coming up. >> thank you. hague.a heads to the u.s. businesses are talking about how sanctions affect their interest in russia. manus cranny. what is president obama hoping to achieve and the business agenda? a multinational response. that levels the playing field that the u.s. does not carry the burden of implementing sanctions was up in other words, america really trying to curry favor with germany and the u.k. and france. and compiles rates in g-7. stepping up schober that shoulder to shoulder in terms of their desire to implement sanctions they go below the personal level.

they have targeted 27 officials. and 4 ukrainians. they have set in motion a readiness to implement. it shows you that the u.s. is a little further ahead in is desired to implement direct sanctions. >> what about europe in real business terms? >> look at foreign investments. that could suffer. europe is a big player. 3% in investment and russian. europe,ing exports from critically important to the recovery. the economic recovery. exports decline -- >> the car sector is a big part. >> absolutely. and banking. over $50 billion in exposure. the dutch has financial exposure stops finland, we talked about

energy. it encapsulates. finland is 100% dependent on russia for their natural gas. along with the german, there is one example that i suppose personifies what we are dealing with. develope on schedule to 100 million euros of military training with the russians on march 7 asset we are fine and we are going ahead. here we are. the german government, they have come to a conclusion. that is not fine. they are not going ahead. not so much sanctions about the possibility of nothing acting in the right way. >> what about american businesses? >> some of the big brand names. ge. big planes on the ground. exxon. the second biggest exploration.

they have done a deal to trail in the black sea. bowling -- boeing. would have ann effect on global gdp. this could be the year where russia and the implications off sanctions impact the migration into the global economy. goldman sachs has over $100 billion invested in russia. they are also advisers to the russian government in terms of repositioning russia. citigroup, one million customers. the number four player. the --ording to one of ross sorkein, the board from goldman sachs, second down and talked about doing business with the russian a few years ago. the big american banks have big american interests. >> thank you.

an exclusive interview with alexander. the former billionaire serving in london. he also owns a newspaper. ♪

>> time for company news. spokesperson said they disagree with all activities that threaten their network. infiltrated its computer network. documents for former nsa contractor edward snowden. budget carrier tiger airways. they are canceling some existing orders. it is look for more fuel-efficient models. at $3.8 is valued billion. it is more than two years after he agreed to set a stake in singapore. their westernng unit for more than $5 billion. it is controlled by asia's richest man.

welcome back to "countdown." i am mark barton. >> i am anna edwards. for more on the impact of western sanctions on russian abysses, let's get back to ryan chilcote and moscow. he joins us with an exclusive interview. >> we are joined by alexander lebedev, the owner of the "evening standard t bank -- standard." requires little introduction. he is very much involved in journalism. forlebedev, thank you joining us. we have seen the sanctions, somewhat limited. all individuals improved his inner circle and -- putin's inner circle. how do you see this affecting russian business so far? >> quite frankly i have not seen any sanctions. debbie muted back. they brought some legal opinion. -- they have been muted back.

it is randomly picked up. it would be nice to be properly explained why for example. it is probably confusing to somebody. >> some of these guys are small fries, not to the big players. but i think so. there is no properly cool implications. an attempt to put pressure on putin was up somebody thinks it relates to his inner, close circle. i do not think it will produce any reaction really. not now of all, we are in the middle of ages when the soviet union was dependent with foreign community. now, if you look for example at they arepepsi-cola, producing care. is about 10 billion euros a year. ,f you look at general electric

they are probably renting to this country, leaving 200 aircraft. they have moved out of the country. supply the american companies. it will be hugely damages. >> how does the west to get president putin to change course? i know you have had your run-ins with the russian president. >> by negotiations. i will try something in front of you like i did a couple of interviews. i think both sides are do have arguments. it will be completely irrelevant if we try to take sides. if you would recall the 1945 deal, i do not feel like stalin, they did settle quite a lot of problems that have been facing each other. the war was still going on. if it takes place now, under

putin's initiative and they work out a package of economic assistance, russian military bases, political him and that would be a new hong kong. how about that? crimea will again join the ukraine. ukraine will be part of eu. did i influence in to buy or not? >> we will see. you have investors and crimea. >> i used to be the biggest russian investor and crimea. >> when was part of ukraine. russia considers it comes still have investments? >> yeah i do. about 30 hotels. the fact the crimea conceives it that considers itself part of russia. you win out because you do not have to deal with ukrainians. >> no. it does not mean anything for me. i used to be a crimean holding

company. it might sum up international investment. it is operational. but, it would not be a place on earth where -- it was completely corrupt. thingsve only been doing that leads to corruption. nothing else. --you say that bar russia the but russia is recognized as the most corrupt, major economy. >> i would hope that would not develop the same mistakes. corruption is there. believe me, i used to have quite some businesses before sacrificing. >> crimea being part of russia is a good or bad thing? books i think hong kong would a biggerprovide international package financially, economically than

russia. russia probably 2 billion euros. hong kong much 10 billion or 15 billion euros. jump to london. the international financing center loved by russians. how do you see what is going on in the crisis affecting russian mining in london? will they pull out? >> there are two types of investments in london. one, little tiny one is official. newspapers and football clubs. >> you have a newspaper? >> i am sort of a preferred investor. everybody tens of billions is kind of a dirty, it legal process -- illegal process. it is a pity. to do arnment has vaccination against it. that might produce bad results as far as corruption is

concerned. not yet. not yet. they are not corrupt. if we do not stop it, it is on the russian government side. regarding the dirty money of russia. sanctions be the being seen as hypocrisy. >> you do not see russian money leaving? >> no. not own a legal footing anyway. he is a -- >> i not asking if he is corrupt. >> not at all. these guys probably are very legal. they are on the legal footing. i mean -- >> the former mayor of moscow? of them as sitting in london for many years until he went to prison. >> will make sure we get them all in two address your allegations.

>> no problem. i have talked about them publicly. why not? >> alexander lebedev, thank you. a man who does not need an introduction on everything from russia to crimea to london. back to you. >> he always has a lot to say. thank you very much. up, high fashion and a base jumper. hotshots are next. coming right up, high-fashion and a base jumper. hotshots are next. ♪

>> welcome back to "countdown." i am anna edwards. hotshots, the most compelling images of the day. islands of myanmar have been called the lost world. outsiders have finally found it. now developers along with high-end tors. it is thought to harbor some the most exquisite marina life. they are highly sought after. if you are going to base the you might asmp, well look spectacular doing it. that is what she did to express her passion. she was dressed in head to toe

roberta cavalli. the bill and melinda gates -- questionede scientists to rethink the toilet. it allows your and powered -- urine powered fuel. nothing if not creative. >> thank you. china's may fracturing weaken further. will the government stepped in to boost? that is next. ♪

>> welcome back to "countdown." i am mark barton. >> i am anna edwards. f two minutes craning for the -- manus cranny for the fx check. >> the australian dollar dipped on the back of the information. we are heading back to a $200 day. are betting the r.b.i. will raise rates this year so we'll be decoupling story going on in the aussie dollar. let's look at ian. it is still there. bank of japan meeting. will they move on the inflation

target? in terms a sure position, that they cut for the most in seven weeks. back to you. >> i am mark barton. these are the top headlines. growing concern over russian troops in the ukraine. leaders are gathering in the hague to discuss the crisis. president barack obama is speaking to vocalize. found five more bodies on sunday following a massive landslide in washington state. that brings the death toll to at least eight. washington's governor described total devastation. the mudslide struck on saturday morning. gains in municipal elections winning our right. the first since 1995. though party lost ground. the result by the governing left

and right for anti-immigration divide. >> may fracturing industries weakened for a fifth straight month according to a preliminary measure released today. occurred.hat it is below estimates. raising questions. what china will do to boost manufacturing. that is absolutely right. it's a delicate of bounds for the policy makers in beijing. they are trying to rein in expansion. they say it is very dangerous. shadow banking. they do not want to stifle the and growth of employment strong businesses and the challenge here is doing that. what we have a fifth straight month of contraction here. manufacturing industry weakening. 48.1atest rating is

compared to 48 point five in february. it was lower than what economists were expecting. 48.7.an average red for and the below 50 indicates contraction. as they recall a break and economy, investors seem to be taking a longer view. stocks are holding up given this weaker data point. it missed expectations. let's not forget, this number is very significant because the key figure that global investors rely on as they get the latest read on the chinese economy. the official numbers from the government, out on april 1 and the flash of pmi, first indication the health of china's economy. we will be watching as the markets respond. the shanghai composite is up by 1%. >> how is this worse than estimated numbers? saying the market, about an hour

ago in your part of the world, how is it going? we are seeingct, the impact on nothing related necessary to the chinese market. the aussie dollar, we'll see the pull back. madeeculation that slowly fracturing sector will lead to fewer overall materials consumed . as for the indices, shanghai composite has been higher and the aussie dollar you raising the earlier declines. that is so longer view. generally it has held up. that is the broader market. >> thank you. pmi numbers,hinese europe will get a taste of how is the manufacturing industry is faring. it is a situation in the credit likely to weigh on the numbers? >> we might be able to see a little bit because there is an

expected slowdown and the pace of expansion and the eurozone and is probably getting the situation in the ukraine which will be thrown into the business confidence numbers we have coming up. business confidence numbers will be released tomorrow. it was quite interesting when you consider the consumer confidence and because it came out on friday rising again. that is right back to the level it was in 12,007. before the financial crisis. that is quite interesting. with regard to the pmi coming out today, the confidence index will probably show the eurozone continues to expand for nine months. it is being pushed more or less by manufacturing. the want to watch that will be coming up about an half an hour is a france. economists are looking to see that that when it's likely to show a fifth month of contraction. the trade in terms of

manufacturing and in terms of services. and france is really out to their own its own. even greece is expanding at the moment. australia, germany, netherlands -- all of them are expecting. germany comes in about one hour and then the eurozone pmi in gmt. 9:00 i will be back with that information. >> thank you stop looking forward to that. >> just a week before key local elections in turkey. prime minister erdogan has taken down twitter. elliott has been watching the developments. there's usually a way around turkey trying to block those kind of workarounds as well. >> certainly trying. turkey has put in place is blocks on twitter on friday.

this is in response to months of tweets that were taunting the prime minister and government with the links to documents and videos purportedly showing how they were in this massive corruption scandal in turkey. it's a bit like that game where you hit one thing i've another pops up out of another hole. publicly of billable number. you can put in your computer system or phone and it. internet into thinking you are somewhere else. authorities have clamped down. defending the block on twitter, prime minister erdogan said twitter has not been shutting down the accounts which are linking to the recordings and documents despite warnings. this twitter and youtube and facebook have shaken founds added their rooms. and we are not going to take a stance of those attacking. successful.ing there are also methods as well. twitter has given up a kind of

phone numbers you can text from turkey to have your tweets published. there are vpn. .hings like hide my app internet intohe thinking you are somewhere else. there are so many ways of accessing them. turkey and is prime minister is doing its best. >> any since the twitter ban will affect his party and the weekend's elections? much in the so elections. local elections, erdogan want to use them and his party showing a springboard to the presidency. his i was not on the ballot in this weekend. his approval brings half plunged from 70% to below 50%. many opinion polls show his party will still do better than it did four years ago at elections in 2009 when he scored 39% of the vote.

not necessarily likely to hit him. his corruption scanned and polarization in turkey and a hit on the turkish lira and stocks and bonds, this is all unnerving investors to a degree. they are certainly have taken action in selling valera -- lira and getting out of stocks and bonds. the story is not over. we'll see if they charge to ban youtube as well. >> thank you. mentioned, ihe believed him but i did not. it exists. quick the one named after a donkey. it does. he said it. minutes fromt 20 the start of the european equities at session. stocks could open a lower. asian stocks are rising. six in u.k. big

energy market. the energy watchdog. it which are to lessen their control. -- it will try to lessen their control. ♪

is tremendously

disappointed that the government secretly did a few things and did not tell us. i do not think we can have a democracy if we are having to protect our users from the government. >> dallas google cofounder and chief executive larry page talking about the u.s. government surveillance with charlie rose. you can watch the whole interview on the charlie rose show here on bloomberg. very quickly, time for company news. we have had breaking news from the danish pavement company. more thang bought for $3 billion. since 1999 the, the ninth big deal. the new team -- movie "dive rgent" top box offices and the u.s. it is based on a popular young adult novel light a quote twilight -- like "."

i am mark barton. >> the start of on the move as well. me now with a preview. good morning to you. >> happy monday. it is looking weaker than the asian session. >> absolutely. they are retreating. let's get to the board up to show you the dax and ftse. we are seeing a retreat after manufacturing in china. we'll have a full analysis on that. that means a lot more investors are worried about the target for growth. you can see the dax futures and ftse and cac 40 down. >> what monetary response will we see if anything from the chinese? >> we have to watch every linked to russia and ukraine and will be watching the banks saying it will pay $885 million to settle

lawsuits by the federal housing agency. the oil markets in focus partly because of the ukraine story. >> it is in focus. we know leaders of the u.s. and others meet in the hague. onge funds reducing the bets rising crude prices for the most in nine months. u.s.d a good number with inventory last month. there is more concern having the sanctions. ulysse of all of that, crude down. >> thank you very much. a look at the top corporate stories. caroline hyde is here. watch out of british utilities. >> yes, look out. british gas among the big

players in the u.k. that have a big fix here. it is estimated they control more than 90% of the gas and electricity market and now the regulates are tacking in on these companies. we realize the preliminary review might be released, the outcome as soon as this thursday. the electricity watchdog in the energy market here and other regulators. the authority has been analyzing. consumers and federation of small businesses. they are investigating the energy companies saying they have too much dominance and are taking too much profit overall. authoritiesed, new begging them to look into it. there is a concern we could see utilities divided up. unit iner generation

being separated from the retail unit. families the shares could fall. 1%-2% as them to fall we analyze where the futures could be going. a huge a generation of competitors coming into the market. first utilities and other and eco trying to get into the market offering us energy bills and trying to offer to the retail community at the moment. it's a looks at the moment the other players are too dominant. >> the u.k. players. eds and eon. it is a small part of their business. talkedting, and article about this over the weekend. they quoted saying a survey by investors all where they saw the biggest political risk for investing in the energy market and they named two countries. first was paid and then the u.k. investors are mindful of the

fact the cost of living and energy is going to be a big topic of conversation, isn't it? >> labor parties saying they will put a lid on. >> caroline, thank you. what a look ahead to the market open. stay with us. ♪

>> welcome back to "countdown." i am mark barton. >> i am anna edwards. to market ahead action we are joined by michael ingram. thank you for coming in. the latest over the weekend development is developments unfolding and in the hague today and the g7 meeting and other nuclear conversations taking place as well. all of that is going to be watched very carefully by the markets. a different way to explain. but i think so. i will point if you look at the market today to actually gross assets which have had a fairly hard time of that. , equities were struggling. >> and underperforming the u.s., michael?

europe underperforming the u.s. why? >> on the face, is a mystery. , ifou look at the momentum you spread pmi in europe and the the momentum has been with europe for the last nine months. >> you mean more room for improvement? >> certainly more at the numbers that are coming out stronger and what might impact the u.s. numbers. issue is ak is the big question mark over recovery. it was quite positive for what we just had especially for europe. theyu look at estimates, are declining. declining quite sharply. down almost 40% year to date and ng just of that qualli

yet. it started euro is impacting that. and no doubt that problems in crimea are a factor. fierce that it there are long-term structures and if you were buying equities, you are not initially going to buy in last quarter's numbers. indications and weakness of manufacturing today from the eurozone countries. any weakness or wobbles in the thean number in relation to places like russia? you will be looking for weakness from france. >> i think francis will remain the week -- france will remain of the weak. hollande plus -- equals hollandaise sauce.

for breakfast. >> it is a contraction? >> exactly. it is expanding. data,na, manufacturing michael showed the industry is weakening for a fifth month. stocks are rising. investors seem to china will do more. >> a bad news is good news in china like the u.s. for a long time. >> yes. it is so bad they have to do something. there were comments last week saying that structure would be moving forward but not money. it is increasingly betting on a many fiscal stimulus package. rates. >> it since i we have been here before. >> we have. the same old leaders. in china, credit boom. driving a boom.

we cut. out where weed see risk from the chinese government where it might fall. given the commitment to the environment agenda we heard from a leadership and that has been a change of the last five-10 years. spit all subway and air cleaning and that part of the economy -- spending on subway and air clean that part of the economy. >> sustainable economic growth. it is an absolute grand scale. to diffuse this incredible growthboom, 15% of gdp and 140% over the last decade and you have three way consumption. you need nine percent growth. how do you balance those two factors? growth at seven .5%. i do not think they can. >> thank you.

we are five minutes away from start of the session. " on the move" on the way. but that will do it for "countdown," and we will see you tomorrow. ♪ . .

>> welcome to "on the move". i am francine lacqua i bloomberg european headquarters in london. we are moments away from the start of trading and our markets team has everything covered. here with me is our markets editor, manus cranny, our international correspondent, hans nichols, ryan chilcote joins us from moscow, and our europe editor, david tweed, joins us from berlin. let's get right to obama touching down. part, comes the difficult

some sort of economic sanctions or response that manages to move russia towards the position of the eu without splintering the eu. it is a difficult diplomatic path. challenge in the next 48 hours. >> thank you, hans. ryan, you are watching the other side of the story. several banks in russia say that the limited western sanctions we have seen thus far are already pushing russia in the direction of a recession. the russian president's response ? well, he is chairing a meeting today on sports. vladimir putin continues to turn a deaf ear to western pressure. watching the fallout from the sanctions thus far. >> what they want to achieve with this