part, 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 it is as g-7 meeting,

multinational response. he wants europe to come shoulder to shoulder with the united states of america. a real business impact and whether europe is prepared to take the next step. the u.s. is ready to put into place the possibility of mining sanctions, financial sanctions. cadre ofcdre -- sanctions could be considered today. >> the question is whether that pushes russia back into recession. outave the latest pmi data of france that is just crossing. let's get straight to david tweed in berlin. >> it looks like quite a surprise. of theted strengthening french economy with the manufacturing index above 50, indicating an expansion in the economy. certainly good news for president francois hollande.

german numbers coming out in about 30 minutes. i will be back with more analysis. >> thank you very much. david tweed with the latest european pmi figures. according to a preliminary march, the nation will miss its target for growth. we have europe, ukraine, and china. >> and we have socgen this morning saying to expect some form of monetary loosening. there is no way they will get to 7.5% growth in china unless they take some action. they shrugged off the market and chinese data. uptrading began to pick momentum in the hour before the markets opened, we saw europe take a little bit more pressure. the french number, we will check in in terms of what the euro is doing. china is underwhelming.

complex, we saw some additional moves, but they seem to have come undone. hedge fund managers have reduced their bullish bets by the most in nine months on wti. copper has turned up. in 2013.own 13% this was the worst-performing base metal. it had been a little bit lower, but look at gold. positions dropped for the fifth week in a war -- in a row. 1000 could be in the cards. in terms of the companies on the move, we are waiting for credit .uisse to cross they're going to pay $885 million for mortgages that they sold wrapped up and packed up.

they have done a deal and restated their fourth-quarter earnings. they will take a charge retrospectively. banco montekes paschi. stockholder biggest -- the second biggest stockholder in that stock. let's check in on the currencies and see how the french pmi actually translated. you know what? let's just pull up the euro. a little bit of a spike. i can hardly call that dramatic. if you are in fx, every pip counts. >> that is very true. manus cranny with the latest on the euro. joining us to discuss how the ongoing russian standoff may impact your portfolio is the chief investment officer at cigna wealth.

thank you for joining us today. we have china, ukraine, the standoff with russia. we also had pmi figures. the french number looks strong this morning. what is something you are focusing on? is there one thing that you believe the markets are getting wrong? >> at the moment, i think markets are just too complacent on the emerging markets. growthential slowdown in related to fed tapering, related to the china slowdown. and now this russian contingent scenario. likelihood of a sudden stop event. it has increased given what is going on. no one is backing down. i think the market is a little bit too complacent on this story. >> what countries are you most worried about? are you expecting a big correction and should investors pull out now?

>> we have been underweight emerging-market, local currency , and the problem areas of current account deficit countries for a while. this is not a new story. the problem is that it still has legs. >> the fed has been flagged down. we have been talking about fed tapering for the last seven months. why is it not priced in? >> because of portfolio flow impact. $55 billion a month still being purchased. as we have seen in past .nstances, when the q.e actually stops is when you see the impact. when you get close to the edge of the cliff and there is no more liquidity, that is when markets price it in. this is par for the course. what we have his pockets of weakness in the u.s. economy,

pockets of weakness in the chinese economy, and this contagion story, which may cause us to correct sooner than that. >> very quickly, we will get back to the ukraine story next. are you saying that growth in the u.s. is going to undershoot? >> i think there is a material possibility that this sort of bounceback that we are going to see maybe a little bit below par compared to what we are expecting. nonetheless, i think we are expecting a bounce back. we have to see just how strong that bounceback is going to be. >> thank you very much. be talking about ukraine, russia, and china next. here is a look at what else is coming up on "on the move". president obama seeks a united as russia the g-7

tightens its grip on crimea. and virtual reality worthy of the matrix. talk about tech and entrepreneurs. ♪

>> so president obama has just arrived in amsterdam. we saw him get into the helicopter and he is there to talk about the crisis in ukraine. he is then heading to the g-7.

we will keep those pictures live and bring you any updates on that. for the moment, our white house correspondent, former white nicholsrrespondent hans , what does president obama hope to achieve? >> he wants to preserve the unity between the united states and canada and the european union on the sanctions response. he also wants to preserve the option to incrementally ratchet up sanctions. we are going to see a step-by-step approach. here is what he told a dutch newspaper. it went live a few hours ago. "if russia continues on this path, the sanctions we have begun to oppose -- to impose will only increase." fore is a danger here western leaders. you saw the canadian prime ministers and at this.

that is that the russian troops on the ground in crimea become the status quo. they want to roll that back. the challenge for obama is that you cannot have economic sanctions that are so strong that they will devastate a fragile global economy. it is a difficult balancing line thealk, especially given economic dependence that some of the european countries have on russia. no russian delegation. what should we read into that? reason is thel security summit. this is the third one. the russians have always attended that. on top of that, the president also tacked on a g-7 meeting. it is without russia because otherwise it would be called the g-8. that is this evening. i had of that, we will hear from obama and -- ahead of that, we

will hear from obama and get a sense of what his next moves are. how strong are the new sanctions that he is considering to impose? justthey be beyond individuals? will he start targeting industries? >> thank you very much. we will go live to hans throughout the morning and get updates on president obama. still with us is the chief investment officer at cigna wealth. great to have you on the program. thank you for sticking around. talk to me about the fact that you are expecting emerging markets to go through a strong correction. you think that not everything is priced in because of the fed. talk to me about russia. is now the perfect time for investors to get out of russia? we do not know the impact of the sanctions and a possible recession. >> i think you are right. we do not know exactly what the sanctions are going to be or the retaliatory measures that we

could see from russia. what are they going to do with the western money that is already in russia? will that be subject to a potential freeze? at very lowe valuations anyway, but there is no mileage in being the first one out. i think you stay and wait and see how it plays out. i speak to money managers every day and it is interesting. psychologically, half of the people tell me that if you are in russia, wait and see. others would say, why would you take the risk? if you do not know what is happening, get out. >> you are probably already underway, but there is no reason why you could not continue to reassess your positions. >> let's talk about china. this morning, we saw a surprise decline in the hsbc pmi. march is the fifth straight month of weakening.

concerns that they may not meet their 7.5% growth target this year. ,f you were to rank risks china, for me, would probably be number one on my list. would it be on yours? >> it would, actually, because of the incremental growth in china the last few years. it is really sizable. if we do not touch 7.5% in terms of growth this year, it is significant for the global economy. and currentket account deficit countries. this is the major risk now. i think you are spot on. >> how do you protect yourself? china is so big that it has impact on commodities, western equities. >> i think you have to reassess your portfolio. we way we are doing it is

are looking to benefit from volatility within the markets. that involves trading a little , using relative value strategies and dispersion strategies. we are employing those in the equity field as well as the fixed-income world. alternative investments, hedge funds. we kind of saw it coming. deliver betterto returns than what we might get him pure equity strategies. since the start of the year, we have seen safe haven assets perform better. -- re ready to reassess >> talking about what, yen? looking at the yen, fixed income in general, the best-performing asset class this

year. as well as gold. we have seen some good returns. why is this happening? we all thought that growth was coming up. there is a new risk that we have seen in q1. safe haven assets do allow us to protect a little bit. very carefully. that might be a good way to go, providing portfolio protection in the second half of this year as we approach that. >> what is your take on europe and what is your favorite play? i know i am asking a lot, but i need the answer in 30 seconds. our favorite play is a producer of aggregates and cement exposed to the cyclical recovery. very solid u.s. operations. on the european side, if there is a recovery, which we are seeing good traction in, then i think we continue to improve. >> we had some great pmi figures in france. do you like the construction business overall or just this

company? >> i think this company has a strong global footprint for us. >> a lot of earnings are being hit by foreign exchange, which is out of their control. >> peripherals are solid in terms of the risk reduction we have seen related to europe. peripheral bond markets perform very well. insurancesuch as axa, sectors are benefiting from the cyclical recovery in europe. spreads are coming down and there are benefits for those types of companies. >> we are sitting here in london. it looks rosy. growth is gaining momentum. yet they have a problem with the strong pound. our investors cautious enough on the u.k.? >> i would not say we have a real problem with the strong pound. the bank of england has said that the strong pound is doing their job for them. europe is in recovery. it is one of the world's biggest

export markets. construction is improving. domestic demand and recovery. it is rosy. for the pound to strengthen on the back of that, it seems appropriate. u.k. doese domestic look in better shape than we have seen for a number of months and years. >> thank you for that analysis. , sanctions could sink the russian economy. will the west feel the side effects as well? we talk sanction spillover next. ♪

>> welcome back to "on the move ". i am francine lacqua in london. let's bring you up this bead with some companies on the move. will orderys says it 37 airbus planes. at $3.8r is valued billion. as part of the deal, they -- in favorers for of more fuel-efficient models. responded to reports that the nsa infiltrated its computer network. that from information

edward snowden provided. and hutchison went over -- w fell after selling its watsons unit for more than $5 billion. hutchison is controlled by asia's richest man. president obama heads to the leaders.meet g-7 they will be asking how sanctions can affect their interests in china. what exactly does president obama hope to achieve at the g-7 in terms of business? ,> he wants to get the u.k. germany, the others on board and say look, we are prepared to take fairly big steps. are you prepared to come shoulder to shoulder with me? going beyond the people around putin. if we go the next step, are you prepared to join me and take the

pain that will come back from russia? so far have been outlined. obama has authorized potential genitals -- potential penalties. they are ready. the question is, is europe ready? >> give us some perspective. put it in terms of real business. >> banking and finance. socgen, the bank of international settlements. foreign direct investment. it is one of the big players. europe is a major player into russia. that could come under risk. we are trying to look at the data. every week, we sit and look at the data. is it improving? exports could drop by over 2%. if you want a personification of what is going on, finland depends on 100% of their natural gas from russia.

if you want an account of what is happening on the ground, they were going to build military we are aton and here the end of march and it is not happening. the german government stepping in and putting a blockage on that. that is the personification of what is happening without real sanctions. >> exactly. yet we could have much more repercussions. first bank is exposed. what about or print america? corporate america? exxon is in the black sea. they have done a deal. boeing are concerned that this year, global gdp to be impacted the same way it was last year with iran. this year, it is coming from russia. there is big american vested interest in terms of participation in russia.

america is one of the biggest foreign direct investors in russia. them joining the world trade organization and wall street. >> i was going to talk about wall street. ,f you ratchet up sanctions wall street might also feel the pain. >> i think the most beautiful line that sums up the risk for wall street comes from a guy that used to run bank of america's interests in russia. it is this. reputational risk is perhaps a little bit more damaging than sanctions. official sanctions are not as important as the sanctions of the marketplace. why don't you go to russia and if obamawith putin will not? has $1 billion worth of investment. they have a three-year contract to help putin build his reputation. big business and big vested interest.

>> thank you. still to come, matrix-style virtual reality could be a game changer for the gaming industry. we spoke to an entrepreneur racing to be the first to bring it to the market. ♪

>> welcome back. obama seeing president arriving at the hague. he got on a helicopter and into a car. he is making his way for the start of his day. we expect them to talk later on to leaders of the u.s., japan, and china. there is more concern growing that the ukraine he's entering the car and on his way to meet with the prime minister of the netherlands. it has been 30 minutes since the

start of the trading day. but see how things are shaping up. last time we checked, they were under pressure and we see nervousness. leaders are gathering in the hague to discuss tension over the ukraine. andad weakening disappointing manufacturing figures coming out of china. this is a fifth straight month. measure. preliminary investors are in this year. we had a stellar figure from french pmi. he said we are getting a little bit of the french pmi figures. 55.5 and it isg that 54.

that live in impact on the euro dollar. these of the bloomberg top headlines. western nations have growing concern over the troop buildup. leaders gathered in the hague today to discuss this. france's far right made historic gains in the elections on sunday. the national party won their first male role seat since 1995. the results were by the left and right. chinese manufacturing data weekend for the fifth straight month after a preliminary reading in march. the reading fell and missed estimates. estimates above 50 signal

expansion. there is a taste of how manufacturing is this morning. is better than expected. germany is worse than expected. >> that is right. i think the standout is the french numbers. they were good when you compare them to what is going on. they are showing the manufacturing and services for more than five months. when the numbers shoot up words, that is really something. that is a 31 month high. the services are 51.4. it is quite extraordinary. the market puts the numbers out and the expansion is broad-based. it has been underpinned in the french sector.

the gain is for 34 months. name.ennedy has a great he is the chief economist and he says that if activity growth can gain traction in the coming months, we could see improvement in the employment front that would deliver a timely boost to confidence. it would deliver a timely boost to confidence and help the french president in his elections. you saw what happened in the municipal elections. he was trounced. economy turns around, we will see some slowdown. and it is slightly lower is above 50. the german economy continues to .xpand, francine

>> thank you david tweed. let's get some data. he is the european economist at deutsche bank. talk to me about the french number. it seems unexpected. you have always put into question the pmi figures and how they will look at gdp. talk me through that. >> i think that the pmi in the french case has been poor over the last years and they should use the pmi to relate to gdp. it is surprisingly bad in the french case. it has been good for the rest of the euro zone. the voteweeks, happened that criticized the inability of the pmi to accurately describe what is going on in the french economy. ,hen you look at the distance

what is interesting is that the pmi is close to what they call general economic expectations. people think about the french economy and there is a big discrepancy between pmi and personal output expectations. companies actually do. the possibility is that the market is overly skewed towards big companies. there are some who are answering on what investors are doing and what the general sense of the economy is moving. it creates a moment of discrepancy between gdp. we have a good figure today. pmiollows a quarters when repeatedly understated the french growth. relativet catching up

strange for two years. >> you are saying that the numbers are faulty and it does not point to strengthening the economy at all. >> the pmi was low before and today, it is too high. they try to look at a wide array of indicators and it tells you that we are in a situation for recovery with positive numbers were gdp growth. >> what you make of these municipal results? arearen't economist -- you an economist. more right wing anti-immigration politicians and that could change the way that france is as a country and have an economic impact.

>> i do not think this will have a direct or immediate impact on french policies. arecipal elections intermittent and bad for the government. there is not much of the centerleft government can do to them.odate the claims of the ideological difference is so wide that i cannot see what they would do to bridget. i think the government has put itself in a situation where the have moved on central reforms and some supply-side reforms. there is fiscal austerity in a prudent way. i'd not think you can really change. towards the right on economic policies, they will lose what remains in their strongholds. that is important for them. wante same time, if they to shift to the left to reach out to the working class that is

voting for the nation of france, they will lose market support that has been strong and positive in the last few months. i think they are stuck and they will probably continue with this complicated and arcane way to reform the country. thes not enough to impress economists in the central banks. it is more -- >> or bloomberg. >> or bloomberg. and are finding a way supporting the core of the policy support. i really do not see how they could respond to what happened. >> what you make of germany? they were below expectations. figures at previous last week and it seems like there is a bigger impact in german thinking because of the ukraine. , do they .2s

weakness in the economy or is it fears of expectations of future earnings because of what is playing out in crimea. >> this is significant. fors an export to russia 0.5% of gdp. it is one of the biggest. and it matches -- it matters for germany. we're seeing that the uncertainty in russia adds to other sources of uncertainty. the data we get from china and latin american countries. the data we get from turkey. if we are in a situation where, in general, not because of a global crisis, but because video syncretic issues, -- , there istic issues

no end of this. i'm not sure of the data and if it reflects that. this is something we need to measure and germany will reflect it ahead of all the other jewish -- all the others. we can react to whatever happens in the end. it is slower and later than germany. they are the one country we need to monitor. >> thank you for that. that is the european economist at deutsche bank. the prime minister. the plug on twitter. facebook could be next. on theve the latest social media crackdown after the break.

>> there are reports of russian troops on the ukraine border. moscow withow from more is ryan chilcote. what are you hearing on the ground? >> what we can talk about is what has happened so far. over the weekend, russia moved to consolidate control over crimea and took the last space and pocket of resistance in the airbase over the weekend. it really wrapped things up. russia has tens of thousands of troops. will they move in?

they say they have no intention to. russian president has dispatched his foreign minister to the hague. he is meeting with secretary kerry. chairing a meeting about sports. it looks like the president is turning a deaf ear to western pressure. he is pretending with business as usual in moscow. in terms of we, economic fallout from sanctions in russia? >> we have several banks talking they limited sanctions and are arty threatening to push the over the nexty two quarters. of things you can see on the street, the street is littered. the ruble is down.

the 17th largest bank here was targeted for sanctions and there is fallout there. are still cardholders not able to use their mastercard's or visas. they say that they are not servicing those. the bank is asking customers not to carry out hard currency transfers to the banks. president is opening an account there. he asked the central bank to help them. the big issue that affects business year if the uncertainty of the situation. that is the big concern because what will that mean for capital inflow and capital outflow? that is a big question. toyou think about the trips the east of the borders, if they

moved to the eastern ukraine, one thing that the obama administration made clear was that if they do service in the ukraine, that would trigger sanctions and it would be widely felt impalpable repercussions for the economy here. >> thank you so much. that was ryan chilcote on the ground. we will have breaking news throughout the morning. 15 mr. now, i'm joined by guy johnson. we have a big show. we're talking about the ukraine and russia. >> yes. the main events is president obama and his news conference. we will carry that live. it is scheduled before 10:00. happen justwill after 10:00. look forward to that. we will analyze what you has to say and the implications for

european policy. we'll talk to a number of people about how the situation evolves from here. ryan chilcote is talking to an mp from moscow who is taking a different line than vladimir putin. is popular in russia. how does that translate to policy here. the obama press conference is front and center. out, it wille data put -- looking forward to it. that is guy johnson in 12 minutes from now. days to go before the local elections. the turkish prime minister is defending his blockage of twitter. ellie gotten has been following the developments closely. there are ways around these things. turkey is trying to close them

as well. >> they have not been completely successful. turkey tried to impose a ban on twitter on thursday. people are linking to recordings and documents that implicate them in a corruption scandal that is taking place right now. over the weekend, we, as they say, they tried to block twitter. they used a publicly available number that you can put into fullsystem settings and the internet to thinking that you are somewhere else. the government has clamped down. the prime minister is saying that twitter has not been shutting down these accounts .hat linked to allegations this has shaken families at the

root. -- re going to >> trying to demonize the social media. it is ao mole game -- whack-a-mole game. there are virtual private use tos that many people access netflix and countries that they are not supposed to. that is another way of foreign the internet into thinking that you are somewhere where you are not. you can take further action against them. they may block facebook and youtube. will this affect the prime minister's party in the elections this weekend? >> it is hard to tell. -- the media in

turkey is controlled by the state. ll showed the prime minister at 70% in 2011. he is now at 44%. party couldat the win more than 39% that they got the last time in 2009. we're seeing the impact of the scandal in turkey on the market, on stocks, on bonds, and investors are looking for stability in turkey. terhaps they will get it af the elections. >> thank you. we are back in two couple of minutes and we will be talking more about the ukraine sanctions. do not miss it.

>> virtual reality finally feel real. but what is virtual-reality seem perfect question mark >> we can

have full body language and presence and feel like we are in a space like the matrix. a headset atated his parents garage and started showing it. that was only the beginning. >> this was a personal passion. now, you are a cofounder of a company that has $75 billion and moves towards a commercial product. you get to live your passion. but it is great. people who are smarter than what i do. >> one of the people he is working with is an entrepreneur. >> i was skeptical about virtual-reality because i grew 1990's with80's and a lot of expectations and excitement around it. the technology was not ready and now the technology is there. it takes a few seconds and you see that it has the potential to change the world and finally works. >> there is a new technology that has his initial tracking.

when a player leans forward, the virtual player moves forward. >> we are able to deliver on the promise of a synthetic 3-d environment that we could not before. >> it accomplishes a lot. unlike previous systems, i'm not feeling any nausea. outhe buzz has brought competition. sony has announced a project called morpheus. executives at this company. not worried. huge sony fan. i hope they take it seriously and deliver something great and it makes virtual-reality a bigger industry. >> both companies have hurdles ahead of them. it is not clear if the software developers will ever embrace the technology.

>> one can consumers buy one? and not a is ready second before. >> is that in 2014? >> we will see.

>> obama touches down in europe and the president is orchestrating a response. >> we are going to moscow for an exclusive interview with the only mp that voted against the crimean annexation. but taking a battering in local elections. is he good news for the french president? pointing --a there's a point to a growth. good morning to our viewers in europe and good