the imf potential for ukraine. obama's words saying you need to de-escalate. merkel talking about tough responses. stocks this month are on track for their worst monthly performance since june of last year. so i think there are layers to this story. and it is whether ukraine has come off the boil for now. and whether we focus again on data. >> and a little bit of pressure on banks in asia. >> if you look at the stress tests, we talk about the nuances. the big news overnight -- citigroup's plan to do a share buyback on hold. the fed says no. the news for europe is the fed has questioned the management unit.ses at rbs's u.s. stock was called lower by 2%> >. >> we will get you the opening

price. hans, you are following the ukraine-imf bailout. >> we are waiting, expecting a bailout to be announced somewhere in the range of $15 billion. that money will free up eu money, and japanese money and u.s. loan guarantees. arrive soonerld in ukraine to get their economy back up and running. expecting 3% contraction for the year. >> thank you so much. hans nichols will be watching the developments there throughout the day. we also have our correspondent in basel watching luxury watches and the impact that tech could have on them. what are we watching today? >> data. you will get one of the final readings on u.s. gdp. in the uk, we will see whether retail sales have slowed. we're going to get u.s. jobless claims. with all of that in mind, we anl keep an eye on

investigation in terms of stock trading. looking touities are open a little bit softer. obama's rhetoric shifting up a gear. warning a deceleration is needed in terms of russia's decision in crime your. merkel getting ready for tougher spots. stocks over the past few days had a nice rally. 2%. let's see what is going on with one or two of them. so we had a rally of over 2%. we are getting some of that back today. sap up. on the downside is commerce bank and bayer. there are couple of stocks that are worth watching on the day. jon mentioned rbs in terms of having failed the stress test. we're talking about banking, engineering and here we go with heneais.

they will go online in central europe and china, spain, but it is missing on this margins. tough on the high streetk. paschi unchanged. the police are investigating stock moves and traits. babcock. what do they do? they dismantle nuclear plants. they have confirmed. they were in talks in terms of with a joint venture spanish helicopter service company. the confirmed today they are going to buy the company. >> thank you so much. manus cranny with the latest on the markets. breaking news. in the last couple seconds. we now understand the imf has an agreement. a stock level agreement with ukraine.

we have been covering the story for the last couple days. we know the imf is looking at the size of what ukraine would need. we are now told that the imf says the sign of this two year deal for ukraine would be between $14 billion and $18 billion. at the moment, we have a staff level agreement with ukraine. first of all, the junior parties involved in this negotiation agree on it. then it has to go to the top. but it means that at least we have a figure on how much the program is needed. joining us for more perspective on the markets is cross ridge capital strategist and head of investment money. great to have you on "on the move." i have to ask you about ukraine. this is one of the risks on the markets. we are concerned about sanctions, concerned more today than we were two days ago about repercussions. >> what i got from obama's trip clearope, it was

de-escalation. there are warning signs that russia should not do more on the eastern front of ukraine. my feeling is that there is a willingness on the part of germany and the u.s. not to escalate without also, to send a message to russia. i see this as hidden sending a message rather than an escalation. i am still comfortable with the risk at this time. >> overall or just on ukraine and russia? there is a lot of concern about china. we hear stories about possible bank runs on smaller commercial banks. we have a lot of concern on europe. most of the market is shrugging it off. >> the main points remain -- fed, china and ecb. we're still talking about the same things. what we heard recently in europe, the talk that you can have negative deposit rates. q.e. speculation. the same in china. china will come up with its own stimulus. in terms of earnings that a, from bank of china, it was

better than expected. the concern remains, but people have real gdp expectations in china and emerging markets. a risk say that there is to the upside rather than downside. >> let's focus on the banks. we had this news overnight from the fed stress tests. where do you see your favorite flag? is there anything looking attractive on valuations or because it is a good hedge? >> sure. the key thing is that it has not been a market of trend. at the same time last year, the gdp was up. there is a lot going on below that. now, you have seen that there stocks have bank done well over the past two weeks. on the back of what is happening in china, and chinese stimulus

news, the mining stocks are doing well. so there are stocks to pick up in the market. neck be then index my wisest strategy -- may not be the wisest strategy. >> it seems like every day we announced a big deal. >> i would say i'm still very much a play. i believe structural growth is there. even though it is low growth, we will get the u.s. gdp number today. it could be 2.5%, which is not bad. but i believe firmly that the upside is much better than we see now. if you see the number of people who had jobs and could not go to a job because of the weather, there are 600,000, which is twice the outlook. same with a reduced number of hours. 1.5 million and with his .5 million. 6.5 million.

>> stay with us. coming up next, we have plenty more on ukraine. we will look at banks as well. the fed rejects capital plans have five big lenders. ♪

>> welcome back. i'm francine lacqua in london. this is "on the move" on bluebird television and streaming on your phone and your

tablet and bloomberg.com. h&m the retailer came out with figures today disappointing, especially in terms of margins. first-quarter profit rising less than analysts expected. h&m, one of the biggest dollars in today's trading session down 3.2%. five lenders failed the federal reserve's stress test. jonathan ferro has the report card. >> i will start with the big one. the fed says no. no to citigroup plans to buy back over six dollars billion in shares. that was a result of the central bank stress tests. there were two routes, and they are worth going over again. all of the big guns past the initial one. that was what if unemployment hit 11.3% and stocks plunged 50%. can those banks with sand a deep -- withstand a big recession. the results from the second stage were more than that. it took into account of the polity of their processes. it was subjective judgments

about management. and it was not just citi that failed. the u.s. units of rbs, hsbc and santander fell short. >> jon, what does it mean for banks in europe? >> probably hard to quantify but what is clear right now is that from her reputational standpoint people will be asking questions.f o for rbs, it is one more in a long list of issues. the fed objected to the u.s. unit's capital plan because of concerns about its practices for estimating revenue and losses under economic stress. this is the very same unit that rbs want to sell. they want to get this unit off the books, whether that it is through an ipo or an outright takeover. two pushes we asked -- does this raise a red flag for buyers? does this it away a value? rbs trading about two percent down. >> the very latest on some of

these banks. stay with us for more on his views. a strategist and head of investment across bridge capital. like to citigroup and you actually own some of the stock. big disappointment after the announcement yesterday was.git we own citigroup and j.p. morgan. what we heard is that the fed is not happy. it is disappointing news, but at sector,as a bank in the i am not disappointed. when you start to talk about the fed raising rates, that should play into the banking sector. i would hold. >> citigroup and bank of america? >> and j.p. morgan. we hold them. >> what is the read across for you for europe? >> for europe? for bvanks?

last two, all in the weeks we have seen some resurgence in terms of stocks doing well. europe is very much a story about inflation. whether deflation will take hold. for thernight rate down last two years. the inflection number is 2%, which is where the concern comes from. now we are chatting about negative deposit rates or asset buying. it is an interesting story. >> there is the problem with the banks that we -- we are not clear with regulation. 8 italian banks are preparing to of stock.lion euros would you be buying any of those? >> i am not looking at european banks. i am doing it through ebs secto rs. apart from bnp, which i like. other than that, i do it by etf. >> this is because you are not

sure about european banks? you would rather hold some of these big names in the u.s.? >> exactly. i will hold a couple of u.s. names in using etf's. >> is that also true for uk banks. rbs is under pressure today. here there is a lot of government involvement. this may go away in the next couple years. at the same time we have the specter of not only regulation but also fines. >> sure. banks, the ones that i hold is standard chartered. that is because of the emerging markets all of. emerging markets have been sold. i have been immersed in that. >> talk to me overall about earnings because a lot of these are impacted by currency swings. a lot of people are practically no one was expecting the dollar to be as weak as it is, given

that we are tightening. what does it mean for stock picks? >> currency, i would say that the euro will come under pressure because of italy's -- ecb's statement. we will see more of that in the next jobs report which i feel will be suppressed to the upside. >> u.s. jobs. >> people are still marking it at 188,000 jobs. effect. pre-weather coming back to europe, the ecg b, here you are fighting to maintain the price. in terms of euro, there will be extra pressure on europe. that should be good for europe as a whole because of you have a strong euro that brings consumer prices down as well because a major imports cheaper and your exports expensive. which is why some of the

regional stocks may not be doing very well. you had a guest that mentioned that there are some issues with inflation. myould say the currencywise, view is negative on europe but not hugely negative. we see the flow of taking european stocks. 1.36 is what i would think euro -dollar. >> thank you for all of that. now, let's return to the breaking news had from the imf on ukraine. hans nichols joins us from brussels with the very latest. hans, we were expecting some kind of deal on ukraine. what are the figures looking like? $18the figures are $14 to billion over two years. some reporting is that it would $15 billion.0 to this is more in line with what the ukrainian government wanted. on top of this $14 to $18 billion. u.s. is $1 billion in

the eu. has talked about 1.6 billion in euros. in plus that up. and you are the 20 billion range. this is on the upside of what may be needed. this is a back level agreement. the executive board, the imf b oard has to approve this in april. they have an agreement. and it will be subject to the board's approval. then the money can get out the door. some of the earlier traunches may be released before hand, especially the u.s. money. we will have to take a look at the technical aspects on when that was released and whether or not it was conditional on the staff level agreement or they -- a full agreement. >> hans, peggy so much. hans nichols, the breaking news -- thank you so much. timeless investment. the world's biggest watch show is underway in switzerland and caroline hyde is at baselworld.

>> it is the biggest watch and jewelry fair in the world. oozing with luxury. there are chandeliers, champagne, and there is even an enormous fish tank. the challenges are still clear for the watch industry. a slowdown in china. foreign currency weakness abroad . and of course, new technology. new smart watches. nevertheless the people flooded. as you can see the biggest names -- rolex and omega. the likes of those are ready to do business and welcome people into their incredibly fantastic new shops they have set up. ♪

>> welcome back to "on the move '. i'm francine lacqua in london. toyota is buying back stock for the first time in five years. the world's largest automaker will repurchase as much as 60 million shares for about $3.5 billion. buyout have been fielding calls from analysts returned money from shareholders. a securities regulator are investigating trading in shares over the past month. the banks'to get shareholder that an inspection started yesterday and it is cooperating with authorities. for the second time everland

delayed in annual earnings conference scheduled for today. germany's second-largest airline says it will discloses numbers before the end of april. airberlin is struggling to achieve a turnaround. its largest owner is trying to support the carrier by taking over. another airline on the move is ryanair. the company is revamping its no-frills business model. we caught up with its outspoken ceo to learn more about the changes to come. manus cranny has all the details. what exactly was his message? >> the big message was, we are friendlier. i was just catching up with guy johnson. the planes leave on time. they are efficient, they are absolute but it is about the engagement with customers and about trying to make you and me love them more. stop complaining about them. the weightshaving and measures please take a step back. taking you out of the cue with

your small bank because it is -- is fouruse it centimeters too big. it is about like o'leary taking a look of the competition and saying, there are a few things wrong for the customer, technology, and realizing the need for change. >> think it was a bit in place and. -- complacent. people would crawl across broken glass to get these low fares. 81.5 million people still do. but there are another 20 million iople out there who say, no, will not put up with a third rate website. i will not put up with policies that do not allow me to get an allocated sea to bring a second bag on board. we are changing those policies. >> what about the business messenger? >> there is an ironic moment when you read to the story. saying, carolyn mccall treats business passengers very well. she runs easyjet. i am being ironic. but the business passenger is important. he wants to go from 80 million

passengers to 100 million passengers. that means there are 20 million people out there that have money to spend and probably want to think about -- >> travel more. for business. you may travel every week if not two times a week. >> even for us. when i go to switzerland or when you go on location, you want the ability to be able to change the ticket. clearly, ryanair and michael o'leary have their sights on the business traveler. you didnk in the past not care whether you are traveling on business or leisure and we treated everybody the same. now we will have a policy that will recognize you are a businessperson. you have different needs. your meetings might change. you may want to fast track through security and we will have a policy that will allow you to do that. >> look, there are still 81.5 million people who travel with ryanair. they are still on target to produce a full-year profit of half a billion to 525 billion euros.

it is about being fit for purpose. here is the ceo that has built budget, cheapest, do not care how you feel as a customer -- a turnaround and say, i need to change technology and change how i deal with you. >> it is all about perception. if you say, i would rather pay 20 pounds more and fly with ryanair because they treat me better. how do you turn that around? >> this is the conversation. guy johnson travels with two kids. i travel on my own. it will take a long time before i jump ship third i want to know and understand it is not an emotional event getting in a cu e. people are having a better experience. guy is able to book for people to get on the plane at the same time. for me, i will learn about a few social media and your experience. i will leave it to you. >> i will be your hamster.

manus cranny with the latest from ryanair. with french unemployment approaching 15 year highs, is it match made in heaven? ♪

>> welcome back. are 30 minutes into the trading day. let's see how things are shaping up. it is a picture of the markets. the dax is down. this means that it is holding a two-day rally on the stoxx 600. a lot of investors are concerned that the crisis in the ukraine may escalate. obama was in brussels.

and he said that the united states and its allies stand united. out foratching citigroup and bank of america later on. this is a picture of currencies and what we are looking for. these of the bloomberg top headlines. bank of america has agreed to pay $9.3 million. agency has housing sued 18 banks over the sales of mortgage products. loans are behind securities. said to have a suspended fx trader. the investigation is into the rigging of currency. there is a review of currency operations and this is after traders in the industry colluded .

the international monetary fund has announced an agreement for a bailout for the ukraine. there is a two-year program between 14 and $18 billion. the agreement still needs agreement -- approval from the imf. for more on all this, let's bring in hans nichols and run us runugh the numbers fonts -- us through the numbers. it needs to be signed off. >> the lord always needs to sign off. oard always needs to sign off. that will allow for the release of money from the european union and a billion dollars in loan guarantees. you are getting into the 20 billion mark. heating agreeing to cut

oil subsidies and letting the currency float a little more. a flexible exchange rate will have the currency drop and make exports more competitive. >> i love this story. another side of this is that the russians want to promote gambling in crimea. that is what our sources tell us. >> a person familiar with the matter says that if you look at what is happening, there is an independent entity and they have a deficit. the russian plan for this is to bring in gambling, really legalize it and promote gambling. take the revenue to shore up the deficit hole and you could have a crimean entity that is a little more fiscally sound than it would be otherwise. a lot of gambling revenue comes in. it is unclear if there will be towards him from elsewhere in russia.

they have to support the crimean economy. >> thank you so much. hans nichols have the very latest from brussels. racking $18 billion in deals with french companies. it is important for france. their trade is behind germany. we have the very latest. france really rolled out the red carpet last night. >> they certainly dead. this is the culmination in a couple of years of policy that the call economic diplomacy. i want to give you an idea of what they have done. there were 33 separate countries missions to in asia and it was all about trade. 13 inompares with only the perceiving two years of the government. there really has been an

important goal for the government of francois hollande. frenche hosting companies and they have been talking about the importance of rebalancing the relationship between france and china. china is invested. there is only one percent of all foreign direct investments. they were saying that they were the eighth biggest investor in france and they have to aim to do that. , there are 70ls planes sold by airbus to china. there is a deal with a nuclear power constructor to recycle nuclear fuel. for ahas been a signing 14% stake. they say it is vital. could lead tot

job creation in france. .> it is not only about that france is trying to woo asian countries. >> you could describe this as an economic of it towards asia. even today, you can see an example of this with the announcement by the japanese airlines and said they are going to do 16.6 billion claim it is key.nd it is the first time that have ever bought the planes. year, they decided by from airbus. it is a signature deal. there are other deals in the pipeline. jet fighters were sold to the indian military. france is trying to follow what

germany has done with economic engagements in these economies. >> thank you so much. to go through a wider investigation. here is one of the first to break the story. give us the details. we published a story last night in london that said that half a dozen traders around the world have been suspended by ubs. there is the latest round of anpensions that is running sprawling investigation into wrongdoing in the foreign exchange market. >> what do we know about the traders? a foreign-exchange trader. we hope to continue our report and we know that he is a senior guy in the world.

one of the differences between this and libor scandal is that they are principally focused on london and this is a global investigation and market. they know these guys work in zürich and singapore. it is a global thing. probe me now -- mean now? >> the personnel is small. you're talking about a dozen people. foreign-exchange and it is common. >> how bad is it for the banks? >> this is the beginning. the regulator start the investigation in october and we expect it to continue. they take it seriously.

you are in a situation of this suspended. it does not look good for them? -- for them. >> coming up, we go to an inside look at how the industry takes. company.a london stay with us. we are on the move.

>> welcome back. in london, this is on the move. we are streaming on any windows phone, as well. we are kicking off and showcasing the latest in watchmaking. is standing by with a special guest. >> i do have a special guest. of thethe cofounder watch club. buy and sell vintage

watches. thank you for joining us today. talk to me about the vintage watches. >> they can be intellectual or not and they are good looking and have fantastic value. the collections are increasing. >> why are we seeing a move into watches? a value thing? >> i do not think it is the case that they are cheaper. a lot of vintage watches. people realize that there is a watchesscarcity and have not been produced. them.friends can admire you can take them to dinner and you cannot do that with a ton of iron ore. guest what region

are we seeing? >> we are based in london and we based with european customers. that tends to be the strongest market. the european question -- the european customers. america, asia, australia. we're seeing retrenchment over the past years. we've seen austerity. what is the impact? ande have grown steadily good sense we open. designs andthe main what are the main companies that people want to look for? rolex. that is the key word in the

world of watches. there are many others and the thing to look for is nothing that is gimmicky. it has to be good and reliable. >> how do you show the track record? there is concern about whether people are being conned. you pride yourself on the assurances for those who by the watches. how do you do that? >> in you to have a knowledge and do your homework. and yous been published need to make sure they are authentic. the have to deal with somebody who has been a long -- around for a long time. aboutt do you think

vintage suppliers? are they competition? realistically, we are small, compared to the scale of those organizations and i would like to think that we can bring some prominence to vintage models by some makers. >> are there any expansion plans? we could speak about that at this time next year. they're telling us they have no plans to make a female watch. morees are becoming fashionable. andhere are ladies watches women have smaller wrists. it is not just a trend.

these watches are celibate and women love them. >> are they buying them? >> yes. >> good to hear. it is wonderful to speak to you. thank you. that was the cofounder of the watch club. sellan go in and buy and vintage watches. >> thank you. hour, we'll have a sneak peak at what some are calling the most viable watch ever made. we are talking millions of dollars. a vital missing piece in this. guy johnson was invited. the company has seen its profile. for the missing

flight mh 370 is the biggest in history. thousands of men and women scour millions of miles to look for a needle in a haystack. even the most sophisticated search and rescue equipment available has found that finding the missing flight is tough. it happened here on the ofndabout on the east and london. it is an unremarkable building that is filled with people doing remarkable things. >> he has been in the satellite business in 1979. he has 10 operational communication satellites that fromsed by everything ships, planes, broadcasting. what they do here really is rocket science. they're figuring out what

happened to mh 370 and it required radical thinking and lots of pizza. flex they did it with this. not this racing car. the doppler effect that describes how signal frequency changes over distance. in the racing car case, that sound. in this case, it is a pain in between satellites. the coreiguring out door and the aircraft could have been traveling in. hope is that tangible evidence will be found and will explain what really happened. whatever that is, narrowing the search area will prove to be pivotal. the bottom line remains to be seen.

this area of london is once again securing its reputation as someome of the hobbit of innovative companies. >> what a great report. what was the most surprising thing? >> the math. they did something with the math that has not been figured out before that took a lot of brain power and really was a big step forward in the search for the missing aircraft. the aircraft has not been found. hopefully, they narrowed the search. when the company was formed. i have been reporting around here for over 20 years and maybe we should not be calling it silicon roundabout. maybe it should be known as satellite roundabout. >> a very good point.

in 10 minutes, we will talk about the ukraine and we have a great guest. >> we do. we will continue the conversation and listen to what they have to say. about the imf deal with the ukraine and we will get some analysis of that. we will continue to talk about the chinese and european relationship. how do they perceive us europeans? i'll ask how the chinese see the french. we will have that conversation with a guest from eurasia later on, as well. >> we're looking forward to the program. watcht, the most viable in the world? we will reveal the price tag.

>> welcome back. here companies on the move. an immature racecar driver and his father over control of a facebook page. the car claims it infringes on copyrights. facebook rules so that they can

make fan pages and do not have to claim to speak for the company. a civil lawsuit commands millions of dollars for hours of work. or saysemerald reduce that they are scouring for assets in columbia. dropare looking to hold a in investments. that they will move to columbia no one may find the right asset. making an appearance at this this year. a luxury jeweler is introducing a hallucination watch. it is the most viable watch ever made. create something extraordinary. collected

extraordinarily rare colored diamonds. and over carats of its 50% of its is between two and three carats. it is a collection of diamonds that happens to be put together fors it is very possible them to be the best of the best. the diamond market, more than of greatre is a lack places for wealthy people to put their money and diamonds are a great tangible assets that you can hold in your hand. inre is tremendous value diamonds and real assets. >> stay with bloomberg.

we are back with the polls. that is coming up next. i will see you in a couple of minutes.

>> missing the grade. citigroup fails a stress test. >> the imf rides to the rescue. a bailout agreement. bankruptcy. and technology takes on luxury. good morning and good evening to those in asia. welcome to those waking up in the united states.