are we in a technology bubble 12347 do you see it as an that you want facebook is down 20%? people are spending more on online advertising. is it an opportunity? are you prepared to be brave? if you look at the technology industry, it is the consumer side that is under pressure. the it is the old enterprise companies that are not under as much pressure. the whole mood about whether in a technology bust is a bit early to call. >> we're certainly seeing a sell-off. of course earnings season kicks off a little bit later. samsung talking up technologies. very much in focus. >> we expected a little bit of a slowdown. the key one here is it is down from the year earlier. a lot of people saying look, the market is saturated. there is two things to talk about. price point and entry level pricing. the cheaper smart phones weighing in on some of the profit.

we also have to talk about innovation. and the size of the smart phone could be what defines the war this year. apple and samsung. >> size of screen makes the difference in terms of quality and customer experience. of course you're watching you crane. >> eastern ukraine. armed men have seized three government buildings and said they would have referendums and that they want to join russia and russia said they should be allowed to choose their political destiny and they also said there are 150 u.s. service men in ukraine working as if they were ukrainian forces. ukrainians say this is just the russians in the east of the country trying stir up trouble. just got off the phone with their foreign minister and he said this idea that there are u.s. troops on the ground is russian propaganda. they have situation under

control. they have taken one of the buildings back and they are going clean it up. >> manus, we're also watching telecoms in france. >> what do you do when you miss out on the deal of 2014? well, you perhaps get on the phone to telefonica. are you in talks with -- it is about trying to decide what to . is it a business you want to be fully committed to? it costs money. > we'll have to watch out. iliad gaining some 1.4. %. >> bank of japan did nothing but an historic day for communication. it is the very first time ever that there was a live news

conference. again, a whole new paradigm. going to speak after the markets close. we'll get a little bit more of a view on what is the form of q.e. if there is going to be a form of q.e. ? you have the banks arguing that the regulators are asking for too much capital to be set aside for asset-backed security. that is the whole crux. it is all about asset-backed securities. we have heard it from mario draghi as well. we get industrial production in the united kingdom expected to rise by .3. you're also going to get a scope of where the budget is going to look. let's see what is moving in italy. technology on the downside. microstmicroelectronics dropping off there.

where should we start? we have a little bit of news on carrefour. stock off half a per sent. bouyges in talks with free about selling their telecoms business. apparently on the phone trying to get a better bit. sports direct, a huge retail outlet here in the united kingdom. the chairman, mike ashley, very well known football man. he sold $3.2 million worth of stock apparently. when the main man is selling stock, maybe that is an indication. morgan stanley, maybe this is their worst pick on the commodity. they say price also drop the

next four quarters. nymex crude, inventory data. we're expecting gas inventories to drop. >> thank you so much, manus. manus cranny with the latest on the markets. joining us is the chief investment officer at r.t.a. bone management -- rathbone. good to have you on the program. talk to me about market trends. we have the selloffs in tech. some say this is usually some kind of bubble bursting or it may be a little bit of nervousness from the investors and it may be a good time for investors to go back into certain areas of tech. >> we're getting back to the 2000 levels where people were talking about sales and not earnings. i'm not surprised to see people taking some profit taufs top. in our view there wasn't really

as yet a tech bubble. certain areas like software services were looking expensive. not a true bubble. if we see a decent setback, 25% 30,%, then i think it is a big opportunity. >> we have this possible tech selloff where you see an opportunity in certain cases. we have quite a lot of m&a. every day seems to crop up some merger and acquisition deal. what is most significant? >> i think the market will be -- on the earnings season. it is very interesting as reone into this season, more -- we run into this earnings season, the expectation i think from most investors is they are too far down that they hope there will be some decent -- >> this is u.s. and europe or more u.s.? >> more u.s.

we have ones coming up -- >> the first one to kick it off. >> i think people will watch that closely and see how it rolls out over the next few weeks. there are main theme apart from them trying to talk down rnings, hopefully geelt good surprise. >> dollar against the euro is obviously key. the euro has been stronger than one would have thought. it is holding up well. despite draghi's efforts to talk it down. what i would say is it is going to be fx and revenue line. what people are hoping for is the u.s. gains traction again after a soft couple of months. revenues pick up and consumer confidence picks up again. we need good strong revenue line through the rest of the year. >> thank you so much for that. we're going to take a short break.

we'll be talking about china next. here is a look at what else is coming up on "on the move." the crisis in the ukraine heats up. we'll talk about that.

>> i'm francine lacqua here in london. this is "on the move" on bloomberg television. on your phone, tablet and of course bloomberg.com.

here is a look at stock that is on the move. one of the biggest gainers in today's trading session. gains of 2.4% after a chinese regulator said china has approved the microsoft/nokia deal. there are certain conditions attached to it. however they are a lot smaller conditions than participants were expecting. microsoft said it would not ban chinese phone makers from using some of their patents. now ukraine crisis flares up once more as separatist sentiment spreads across the ragile nation. ryan chilcote has the latest on this story. ryan, how much of a surprise was this? >> it is a bit of a surprise. not in e cities

significant cities. a total of 10 million population in all. 1/5 of ukraine's total. really the industrial heartland ukraine. we begin in donetsk. in may, they would have a referendum where they would ask the people of the city if they wanted to join russia. kharkiv, the same thing happened there. the foreign minister told me they are retaking the building from those armed men. finally in luhansk, armed men moving into the city. battles throughout the night. the big concern is not just these events but this they are following so quickly after

crimea. if you remember, in crimea, it started with armed men seizing the legislature there and then vote for a referendum and then russian forces and militia surfaced. many people say including the ukrainian federal government, this could be the same kind of situation. >> ryan, what is the reaction to these events by international communities? >> well, the russians have been very vocal in saying these are ukrainians simply expressing their free will and they should be allowed to do that and hold the referendum. they have also called on the ukraine yum federal authorities to extend their military preparations to take back these buildings and they have accused the united states of sending 150 servicemen they say are in ukraine dressed up as you

cranian forces helping them. we have heard from the u.s. saying if russia was to move into eastern ukraine, that could prompt sanctions and we have heard from the ukrainians saying this is unacceptable. they will not allow russia to meddle in their affairs. >> ryan chilcote there following the latest developments on the ukraine crisis. with us still is julian chillingworth of rathbone. we talked about the possible selloff in tech. you say there may be opportunity out there. talk to me about geopolitics. you don't really know or it is difficult to predict these kind of events and we could have seen a huge sell-off in the markets. >> as you rightly say they have not in the past year or so. it was a very short -- reminder for markets that these things

come left field and perhaps the cold war has reignited as well. listening to your reporter, it is as much standoff between the russians and the americans as it is between the ukrainians and the russians. i think it is fair to say that geopolitics is back on the agenda and will worry investors. i think we need to expect further volatile fifment >> are we expecting volatility? we had that first selloff on monday when we talked about the sanctions. the markets are happily merrily going on as if nothing happened. >> if russian banks were taken across the border, i think markets would get very jittery. they would worry about what the response from the u.s. would be. >> on the other story we have been coveringing, nokia. i'm not speaking about nokia in specific, but we have these

megamergers and a regulatory green light from china on the nokia/microsoft deal. is it c.e.o.'s being more bullish about their outlook? more positive about the trends for the economy here in europe? >> i think there is renewed confidence in the economic outlook and that is a global phenomenon and we have seen in europe, quite a lot of efforts to consolidating, particularly telecoms is a prime industry where consolidation was needed and now i think people are feeling for confident and are prepared to put down the marker and go out there and do some good deals. obviously it is the cause of the investment bankers as well to drive them on. >> you're absolutely right. keep it right there. we're going to talk about evaluations next. let's stay with consumer tech. falling prices for galaxy devices.

what is ailing at the biggest maker of smart phone? >> what we got this morning were the big headline numbers. if you look at operating profit, 8.3 trillion was expected. it came in at 8.4 trillion. i say you can call it what you want. it is down from a year earlier. market saturation. at least in the premium space. these companies are struggling to generate growth. that seems to be the story through the next 12 months. >> how does a smart phone's sales battle -- >> you see the smart phone market last year. samsung took 31% of the industry's revenue. apple took home just 15%. that battle will no doubt take the headlines this year. price point becoming the focus. cheaper phones weighing on profits.

it is not necessarily about getting new people to buy smart phones. it is more about keeping and stealing existing smart phone users. fingerprint sensors, this year could be defined by one thing. simply screen size. samsung's goes on the sale and it has a 5.1 inch screen. big screens are what sells. apple has not featured in this space. it is where samsung has eaten up market share. that could change this year. there is talk that apple will unveil two iphones this year. one might have a screen measuring 5.5 inches. what might really matter is just the size of the hardware. >> thank you so much. jonathan ferro with the latest

on samsung. final thoughts with julian rathbone.rth of the smart phone is so crowded. the chinese mobile manufacturer is hoping to sell something like 100 million hand sets in the next couple of years. what does that mean for investors? you stay out of it? how do you play this? >> i think the hardware market is exceptionally difficult to make money and even if you're looking at supplies, it can be a real roller coaster. you look at people with innovative ideas. these are sometimes quite binary. our overall views in the smart phone market is one that you probably will do better to keep

away from and as your reporter highlighted, it is going to become more competitive because the chinese market is huge and they recognize at the bottom edge of that market, they can take a huge share. >> in the mex 4-5 years, you look at companies differently. >> we are looking -- i mean, i think we have got an upcoming conference which is going to talk about destructive technology and i think that that is a very interesting theme. out of that, you know, the internet technology, comes opportunity and that may be through social media. it may be through direct sellings to the consumer as well. but you got to be aware of the pitfalls as well as the upside in these areas. subsequently, i think so we don'tr things closely and

get dragged into new metrix. i.p.o.s hits consumer and clicks. it is an easy way for people to market a new product and perhaps not one where they are going to make money. >> it is a disrupter for the smaller companies. julian, thank you for your time. coming up on "on the move," a new day, a new buyout drama. details coming up next. ♪

>> welcome back to "on the move." i'm francine lacqua here in london. we're watching bouygues once again in london. ill yat is in talks to buy bouygues telecom. manus cranny has more on the details. you're bouygues. you're trying to get your hands on them. what am i going to do with this company? who can i merge it with? >> yes. ok. that makes sense. you look at that -- you're under the hammer. it is hard to compete in this market. these talks have been ongoing for months.

that i find much more interesting. that is an expedia board going. fine, we'll get this trade going but if that deal falls apart on me, i want a backstop. it is 1/3 of our business. we're never going to be a major player. we have to review. what do you do? you try and have discussions ith iliad. no comment from bouygues. it is a difference in price. free wants to pay 5 billion. mind the gap between 8 billion and 5 billion in evaluations. >> i guess they will have to come up with a little bit more. it is not confirmed. this is just press reports that we're seeing in the french prez. >> correct. these are french press reports. it is rallying somewhat now. if you think about it, orange

and s.f.r. a going to get together, not get together, they are going to be the dominant players within the french telecom industry. i love what they said. if you're going to roll the dice and go for bouygues, why not roll the dice again, bouygues/iliad. put them together, you actually get cost savings. net present value of just under 5 billion euros. if you want to roll out a company, talk synergies. >> over the next 12 months, we understand that they are going to go through the biggest m&a transformation. >> that's what matt said yesterday. >> thank you so much. manus cranny there with the very latest with bouygues. still to come, speed reading on the smallest of screens. that is the goal of one start-up getting serious buzz from the

likes of samsung. we'll introduce you to sprint. that is coming up next. you can follow all of us on twitter. i'm at flacqua. see you in just a couple of minutes. ♪

>> welcome back to "on the move." i'm francine lacqua at bloomberg's european headquarters here in london. we're 30 minutes into the trading day. let's see how things are shaping up. this is a picture of the market. actually little changed. a lot of investors are pointing to the fact that they want to watch ukraine because there is growing tension over in ukraine. watch out for that. it may give a markets a bibt of a dip over the next couple of hours and days. manus cranny is at the touch screen with three stocks to

watch. manus? >> sugar, these are the dominants. suedzucker. the biggest one-day drop since january, 2008. they said we're going to make about 7 billion in revenue. a operating profit of nearly 1/3 of what the market estimated. nokia gets that approval in china. the chinese say yes in terms of the nokia/microsoft deal. bouygues, the appreciation saying bouygues are in discussion saying they will do a deal. stock up 3.6%. it is a tough day on the markets. >> thank you so much. manus cranny there with the top three movers. these are the bloomberg top headlines. the u.s. is accusing russia of instigating the most recent

unrest in eastern ukraine. according to the white house, there is evidence that russian paratists who seized government buildings brought in people from the outside. refrained froman adding extra stimulus. and u.k. pay growth accelerate at the fastest pace in almost seven years at the end of the first quarter. 62.2 in march from 61.7 in ebruary. of course one stock on the move,

samsung. they posted a second straight quarterly profit decline today. for a closer look at their rulls i'm pleased to say we're joined . a partner if you look at the future, how ill they win market share? is it screen size or price? >> samsung has doubled the market share of apple. it is also not immune to this. their most recently released s 5 is 10% lower than the s 4. the research firms say prices used to be $365. they have dropped to $336.

the high end is really collapsing. it is the low end of the market that is growing. if you're a manufacturer of this these phones, that means falling margins for yourself. >> how do you find they are spending a lot on marketing. that is not really working. how do you do? what do you do? you're the c.e.o.? you're in your office now. how do i crack this market? >> i think samsung has cracked the market. it came out of nowhere to become a dominant vendor in this space. it spends a lot of money. i think the question now is that spend actually justifyable? justifiable? the second questioning as these phones get cheaper and the margins collapse, samsung gets about a 17% margin. remember nokia used to make more

money on their phones than samsung does today. >> would you rationalize costs? i guess samsung needs to be seen as an innovator. >> is there something coming around the corner that is going to allow you to build the next project that you can premium price for. nothing really stuck with the consumers the way the smart phone is stuck. it is becoming mainstream. >> is there anything you're excited about in terms of smart phones being unveiled? >> for apple, there is all of this -- some interesting strategy questions for apple. a lot of documents got revealed to the public. they know in their category, they are declining. their growth is stalling. they know they have dominated their category and they probably

have to either go up in the market and build a bigger phone something more like a tablet or build inexpensive phones. those are the two growth sectors. apple doesn't have plays in either one of those. nobody really knows. nothing has been super interesting so far. >> i'm sure that the c.e.o.s are working on that. hoping there will be another trick in their hat. talk to me about sell-off we saw in technology stocks. when you speak to investors and analysts and insiders, they can't really explain except from the fact that it was a bit -- and they are not getting a straight answer. is it time to get back in or is this the starting of a bubble beginning to burst or the early signs of a bubble? >> no one can really read the tea leaves here. evaluations were frothy. if you look at just a couple of

baskets. you look at some of the consumer troppings baskets, evaluations did creep up significantly. now the market has corrected a little. not all the way. you can still see companies trading at high multiples over their earnings. none of us really know why the market -- it seems to have settled down a little bit. is it a buying opportunity? it all depends. the biggest fundamental factor in all of these tech stocks is growth. if you adjust for everything else, growth. if you have a bullish reason to believe that growth is going to continue, it is a buying opportunity. if you believe growth is priced in too fairly, it is probably time to sell off. >> i want to talk to you a little bit about nokia. we finally have the regulatory hurdle, giving the green light to nokia and microsoft.

nokia one of the biggest gainers in today's trading session. gaining 3%. >> these things don't happen overnight. it usually takes up to a year to approve these things. it is great they have approval now from china. there is a bit of fine print where they have to open up their pat ept portfolio to the chinese manufacturers. i think they are going to be the interesting winners. they are the ones that can produce the phones at the lowest cost. i'm impressed by what they have known china and they are now expanding iny and to take on some of their manufacturers on their home turf. >> i'm fascinateded. i think they were saying they wanted to sell 100 million hand sets in the next couple of years, which is pretty impressive. keep it here. we continue with our discussion. speaking of samsung, there is

one company that has picked up on the idea of a start-up called pritz. sam grobar explains. >> these racks and shelves contain a lot of books. for thousands of years, we humans have been pretty good about the whole reading thing and in most places we do it the same way. we start with our eyes on one side of the page and we move them across to the other. a new company called spritz kind of looking to change all of that. instead of producing words in sentences that our eyes scan over, it produces words squerblely one after another. why would you want to read this way? if you're presenting things word by word, you don't need a large display to read longer texts. samsung has hooked up with

spritz on that technology. there may be a second benefit. 80% of our time reading is actually spent moving our eyes from word to word and refocusing on each one. if we don't have to do that anymore, in this case, the words come to us, we can read what spritz says faster. according to the company's research, people using spritz settle in at 350-400 words per minute. that is about twice as fast as normal and there are some outliers reading at 1,000 words per minute. research has shown after 650 words per minute, comprehension starts to fall off a cliff, but in some cases that may not be so bat. spritz wants to account for 15% of all reading in two years. they think they can make some inroads into the shorter form reading that we all are doing. no, you're probably not going to

read "war and peace" on spritz, but there is a whole body of reading that has less to do with comprehending and digesting and more to do with glancing at and burning through. >> do you want to read this way? this is again one of those technologies that you probably dependent know you wanted until somebody shows it to you and you say that's clever. why would i do it any other way? >> i love these things. they kind of come out of nowhere. it is great for them. they have a distribution deal with samsung. you need some real estate whichics samsung is giving them. if you look at the keyboards, there is the swift key which you can kind of guide your finger around and be able to trace word. who would have thought of that five, 10 years ago. the smart phones nabling -- >> it enable fass smaller

wearable technologies. i have a problem with this because i often go back for reference, if i'm reading a book to make sure that one of the characters i knew more about. for emails, quick and easy. >> for news articles on the go. great way to get it smaller digest. get it out in front of you. we'll see if it actually works. it is interesting to have people try it once. it is really hard to get people to use it on a daily basis. >> we'll find out in six months? >> i think three months. >> coming up on "on the move," london mayor buries johnson bets on british biotech. ♪

>> i'm francine lacqua in london. this is "on the move" on bloomberg television, streaming live on bloomberg.com, your tablet, phone. ndon mayor buries johnson -- boris johnson hopes to establish the golden triangle of medical innovation. caroline, how important are life sciences to the british economy?

>> good morning, fran. i have donned a lab coat and it is important because it is labs like these with researchers such as these that are currently driving forward development in cancer research as i speak. it is the innovation of drugs that teased the u.k. economy 50 billion pounds a year. it employees about 170,000 people. put that in perspective. that is half the number of people that one of our biggest grocers employees. they want to push forward this idea of med city. team bout making london with the expert's we already have here. to make this golden triangle to lure in more investment and to drive forward more breakfastthrough research. >> why would london be a good

addition to the expert's of cambridge and oxford? >> well, look, i'm already here, francine. i'm at imperial college. look at all the bottles and equipment that they are using. mind bog technology people watching now. it is that sort of expertise, not only imperial college, king's college, these sorts of areas, driving forces. the research hospitals that have teamed with them is what makes london so important. that is why the proximity to london and cambridge would also help enormously. that is why they want to build in london as a city. >> what is the advantage to building such a hub in london? >> i think the challenges are notably the cost and rent and the like. also a little bit of inward rivalry. would it be a little bit

competitive with the likes of kings college? not so says boris johnson. he is going to be the p.r. king. now he wants to put med city on the map for international investors. it is about bringing in yet more money and already we're seeing money coming in. it is fascinating. some companies have already raised money. sarcasia.e called it formed here in imperial college and it has spun off and is worth half a billion pounds with a record initial share sale for a life size company in the united kingdom. that p.r., view that we're getting across the border means it is going to entice more expert's in investing in life sciences. particularly in the united kingdom. >> we'll have plenty throughout the day from med city. "the pulse" is coming up. i'm joined by my co-anchor guy

johnson. we'll be talking tech and med city. also talking about the markets and why are we seeing the selloff? >> there is so much doing going on at the moment. the tech story. we'll talk about samsung's numbers today. what does that tell us about the lie of the land in the mobile hand set story. we have some great guests cog coming up, covering that. microsoft and the deal the chinese have cleared. 1:00 p.m. eastern time today, microsoft turns off support for xp. 500 million p.c.'s around the world still run this. we'll talk about the implications of that for the p.c. sector. they are picking up nokia. they are ditching support for xp. quite an important day for the company as it moves forward from

here. go square, a company that does an litics of what happens every time you use a website, you use an app. we're not talking about the n.s.a. here. we're talking about a small start-up company. we're going to get all the tech trends and the best story of the day for me, one that is potentially going to wind up a few people in the big apple is if new york has been removed from the trip advisors places that you must go. >> replaced by rome. istanbul number two. rome number two. and london number three. what do you say about that, guy johnson? >> there are people in the control room getting upset about that. we'll leave it there. >> guy johnson with the latest. here are some companies on the move. two companies that are the oldst

computer services providers in france and are teaming up against larger rivals. bosch already owns technology such as door sensors which regulate temperatures. nokia and microsoft received the green light from the chinese regulator. icrosoft receiving approval. coming up on the program, it is the battle for the sky. a first look at the inside of the a-350. went aboard for a side by side comparison to its rival, the boeing dream liner.

♪

>> welcome back to "on the move." i'm francine lacqua here in london. airbus is showing off the interior of its 5350 for the first time ahead of the launch later this year. this is the model the company is hoping will rival boeing's dreamliner. >> meet msn 2.

its airbus' mock up of the a350. kind of like a show and tell for airlines. airbus offers superior level s of passenger comfort. boeing said pretty much the same thing when the dreamliner started flying in 2011. how do they stack up on the inside? cabin room of 5.6 meters mean airlines will be able to pack them in. the a350 has a 10 across seating option. the dreamliner has a max of nine across. it is just narrower than its rival. breathe easier on an a350 flight thanks to a new aeration system. lower cabin pressure at 6,000 feet makes for a more comfortable ride. dreamliners have the same lower air pressure too but are also equipped with special filters to suck up those smells from food

or that guy sitting next to you who just took off his shoes. taking cues from the euro disco theme, the oonch 350 has a full l.e.d. lighting system that has 16 million color options. hopefully not all in operation at once. it must be a thing on long haul aircrafts because the dreamliner sports it too. >> pretty impressive stuff. show and tell of the airliners. stay tuned. gay and i are back on "the pulse" coming up next. this is the picture. we're 56 minutes into the market action. let's have a look at the markets. little changed. a lot of european stocks yesterday fell from a six-year high. investors are now focusing on what is going on over in the ukraine. they are trying to win a escalating tensions between the u.s. and russia over the future

of eastern europe. that is probably meaning that some are taking a little bit of profit. i'm back with "the pulse" in a couple of minutes. you can follow me on twitter. i'm at flacqua. i'll see you shortly. ♪

>> samsung slides. the world's biggest smart phone maker eyes cheaper devices. >> out with the old, in with the new as microsoft its chinese clearance. the u.s. giant turns office 12-year-old xp operating system. >> romeo 2.0. russia vows to hold referendums on joining russia. good morning, e