>> 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, everybody.

you are watching "the pulse." we are live from our bloomberg headquarters here in london. >> coming up, bring it on boston. britain's pusht to become the new hub of medical innovation. falling prices for galaxy .evices jonathan ferro joins us to talk about what is ailing the world's biggest smart phone manufacturer. it comes in at a $.4 trillion of profit. it is a slowdown. it is down from a year earlier. that is the point. a lot of people are talking about two words -- market saturation. >> that is interesting. it takes as to what the rest of the year will look like.

people are looking at what and lenovo will do next. can the chip away at the bottom end of the market as well? >> price point is a big deal. we can add the nokia deal into this as well. they weren't making any money in it anymore. talking about margins. nokia got bigger margins from the old handsets than the likes of samsung do today. that is quite telling. going forward as a price point gets lower, the margins of these companies is going to get smaller and smaller. we, the show, have a lot of gas, talk about innovation and disruption. to be quite honest, it is giving me a headache. fingerprint sensors, waterproof phones. >> the word disruption came on at one minute past nine. yesterday was 10 minutes past nine. >> the big thing for mobile phones is the size of the screens. >> at it is wearable. it basically enables the

company to take on the big ones. samsung is spending so much money on marketing. >> the most disruptive thing that is going on in the smartphone market is not innovation, as google coming in making cheap handsets at people want to buy. it is not the hybrid technology you're talking about. 25% of samsung's workforce is in research and development third weather coming up with? samsung galaxy gear? let me be honest with you. what if apple launched galaxy gear. two cooks heads would be on the line. everyone would be coming on the show talking about apple getting rid of tim cook. >> what apple does is comes out with the finished product. gets a comes out earlier product out there. >> the big deal this year is not hybrid technology, is the fact that the iphone may be 5.5 inches big.

-- he majority you like a kid looking for the next big shiny thing. >> the point is this is a mature market. the market is going to shrink and way on these companies. is to bring your costs down to protect this margins. those companies have really got to look to do that now. to the carry on spending or do they protect margins? that is going to be a big story. >> with samsung you could probably do both. you could attack lower price points. they make their own screens and chipsets. they have an advantage of the chinese. and they have a great brand name. follow the margin -- you can thought the radar screen completely if you go after margins. >> they can carry on spending are they need to protect the margins. >> are going to dive you don't

innovate. >> i don't disagree. all i am saying is that is the price point comes lower, that is more pressure on those companies. up microsoft. this is a great case in point. the fact that we're talking about this and them turning off xp is fascinating. this is where microsoft made so much money. i love the fact that here's the inertia in the technology or. get this. in china, 50% of pcs still run xp. 1:00 p.m. standard time today microsoft is going to turn off support for this. a 50% of pcs in china still run on it. 500 million pcs around the world still run on xp which is a 12-year-old operating system. i find that mind blowing. >> here's a security. it is going to be absolutely huge for china. >> what i think is fascinating is that 90% of pcs operate on

windows operating system. hackers use holes in xp because the system has been evolutionary , to find holes and later operating systems. it is like having unvaccinated children in the school system. there is a weak point in the system, and that is what hackers are using. >> jonathan ferro, thank you so much. >> our european business correspondent caroline hyde is live from imperial college. she joins us there. talk to us a little bit about how important the life sciences are to the british economy. 50 billion pounds important, guy. the lifeow crucial sciences element is to the uk's economy. that is about double the amount of money that adds to one of our key grosses every year. unique researchers like this are

driving forward development and breast cancer. it is unique accent like these amazing laboratories that they these laboratories. it is that serve research that they want to focus, shine a light on. just to try to bring investors attention. at the hubs we are the having cambridge and oxford and make london another linchpin, as they say, the golden triangle. caroline, why would london proved to be a good addition to the expertise -- >> i'm ready handed back to because we have lost all connection. >> that is a shame. we are going to ask about the golden triangle. we will get back to caroline throughout the day. medcity. orting from >> i want to talk about what is

going on in that ukraine. armed men are storming buildings in three cities in eastern ukraine. some would say it is the same as what preceded russia's annexation of crimea. >> ryan, this comes as a bit of a surprise. >> the three cities are donetsk, kharkiv. armed men are seizing government buildings there and then declaring that there from independent states in that they will hold referendums in may where they will ask the local electorate if they want to join russia. what we saw inke crimea. this is a very significant chunk of ukraine, about 10 million people live in those three cities and surrounding areas. it is, in many ways, the industrial heartland of ukraine. this is a very big deal for the

central government in kiev. perhaps even more of an issue than crimea was. >> look, accusations are flying from east to west and west to east. talk us to the reactions to the events. >> reared quite a bit from russia. russia is saying that these protesters, as they're putting it, should have the right to choose their political destiny, perhaps supporting these groups or armed men as some are describing them, warning the ukrainians to suspend any military preparations that may be underway to take the buildings back. we have also heard the russians say that there are 150 military specialists from the united states in ukraine. ukrainian stressed that as you create special forces, the russians are talking about security contractors. the foreign ministry say they work for a private security firm

called greystone, another very interesting allegation. i spoke with the russian foreign minister a short while ago. he said that is just russian propaganda. there are no u.s. military specialists on the ground in ukraine. he said all of this is simply an , to create and pretext to send russian troops into these of ukraine. they won't let that happen. in fact, he says their party taken one of the three underment buildings back control. there've agreed with the so-called protesters in the donetsk regional legislature that they will lay down their arms. clearly, this is something we will have to continue to watch. be doing ay, he will force. ryan chilcote. >> here is what us you are watching today. investigators have narrowed the search area for the missing malaysia and jet. -- investigators are up

thenst the lifespan of black boxes that are his. >> the bank of japan is refrain from adding extra stimulus. policy makers say the economy continues to recover even with last week's tax increase. for the first time today, the boj allowed the medias reports to be shown in real-time. >> major pharmaceutical companies were ordered to pay billion for a suit involving pharmaceuticals. up, we've been talking about already. smartphones have been getting cheaper. samsung has been struggling to

keep up. can the world's largest smartphone maker continue to work customers. ? more on that when we return to "the pulse." ♪

>> welcome back to "the pulse." we are live on bloomberg tv and radio. also streaming on bloomberg.com. >> let's talk tech. some of the biggest names in the sector falling out of favor with investors. manus cranny is here with more. >> guy, it is the biggest

conundrum in the world. look at these indices. nasdaq has had its worst run since 2011. volatility is rising. traders are beginning to pick up protection. this is concern in the market that the way matt that -- there may well be a correction on the way. twitter, linkedin and facebook. performance years today. not from a year to date high. stocksse the kind of that are coming under pressure because of consumer faith? they did much better than the market when the market is rising, but when it turns, they're the ones that take it on the chin third and leave you with this thought. brave men and women at oppenheimer.

>> manus cranny with the very latest. >> sales came in below estimates, so how can samsung fight back against this tide? blitz as the managing director and partner at his research firm. a situation with the top and look saturated. the smartphone market has been getting busy up there. at the real action is cheaper end of the market with the chinese are making a big bush with names like lenovo. how does samson deal with this and fight back? can it fight back? yearey've spent the last holding their own. we have had this discussion for almost a year if not slightly longer. how long can samsung hold its own? it does look harder and harder by the day. lenovo's deal with motorola earlier in the year set a benchmark with which samsung is now going to have to fight. ip andhas western

chinese economics. samsung are going after software solutions. therein to put out $600 worth of free content into the samsung cut that.order to >> are they spending too much on innovation -- not on innovation, marketing, and not enough on margins, basically. is such a highis water mark what they achieved before. i think they're doing incredibly well to be generating $6 billion of profit per quarter from handsets. not what problem, they're failing to do, it is what they're done before that is so amazing. >> the chinese gave the green light to know kim microsoft deal today. nokia is going to be giving away -- microsoft will be giving or

the operative system soon. it was to become the third force. how much of a challenge with that pose for samsung? is another challenge. >> i've always been a big fan of microsoft's work in the windows phone area. i have a nokia 825 myself. i think this is an area where competition has been slow to emerge. definitely, microsoft has ability to push forward the windows phone franchise. if you start looking at the combination of what they're tablets,h the service with xbox one and stuff like that, they're coming up with an integrated consumer product. the problem is it is costing them a lot of money. the question has to be how long will the current new ceo put up that?he cost for >> is a market that is saturated. apple is nothing sales declines, but they are not growing, either.

we'll be talking later about this brits app. etest on wearable technology. >> each of these products, it is almost like an add-on to the original concept of smart mobility, rather than a revolution. once it is an add-on, then it gets harder. summary has to come up with a new next big thing. it is not just a marginal issue, which is what we're been talking about 30 fewer to produce a profit growth that we have enjoyed over the last five years since original, somebody's going to have to come up with something that they. >> what you think that is going to be? samsung completely repositioned itself. is another company waiting to do the same thing? is that the applet samsung or somebody else? >> the likelihood is it is going to be one of the existing

players just because of the money required. xiaomire hearing from that they want to sell 100 million handsets in 2015. not talking about revolution, we're talking about evolution. we're talking about it topic the hoovernd make affordable. is the super high-margin high sales product and come from. it is going to be something that comes up up metro connectivity, perhaps to do with electronics. >> why would it not be chinese manufacturer? automatically looking at google or microsoft or one of the big players. it could be someone much smaller. >> the problem is ip.

this is why i go back to why lenovo acquired motorola. very few companies have ip that stands out. they can produce handsets cheaply at home because are not running into any pattern problems. this is a start exporting these products, whether or not the patterns are valid or not, >> of apple will come down them like a ton of bricks. that is why lenovo made a deal, not just to make the ip, but to trade the ip. done.s why the deals are for most people, they don't have that access. we're going to start to look to see if others come in, they will buy more ip and trade and then there's their two thirds or three citizenry from dream at. >> nights as you, thank you for joining us. >> the cofounder and ceo of

squared will be coming in to speak with us. >> why researchers are hopping with excitement about this mechanical kangaroo. ♪

, welcome back. you're watching "the pulse. so restricting your tablet, your phone and of course on bloomberg.com. >> all angles covered. let's go straight to market editor manus cranny at the touchscreen. >> and equities is slightly undecided at the moment. themes, geopolitics and valuation. 500 dead since these markets have had a correction -- 500 days since these markets have had a correction. euros equity futures. i just ran through some of the issues on the nasdaq. correction on the way in technology stocks? are they battered or should we do as oppenheimer suggests which is catch a falling knife.

we going to very early trade as far as the u.s. coming to work is concerned. three big upgrades that are focusing on and european equity trading. sugar, profit warning. it is in part the majority of their business. are they trying to sell their telecom business? have they been on the phone to telefonica? huge discount retailer on sports goods here in the united kingdom. down six percent. divested a few more shares, 200 million pounds worth. back to you, guy and fran. >> do want to read a novel in 19 minutes? and your speed reading app says it has the answer if that is what you want to do. it shows you just one word at a time.

and we test it out out the technology that may be redefined reading. we will see it a couple of minutes. ♪

>> welcome back to "the pulse." i'm francine lacqua. >> and i am guy johnson. these are bloomberg's top headlines. >> united states says russia is behind new unrest in eastern ukraine. it is warning moscow against what it calls a very serious escalation. pro-russian separatists seized buildings in three cities. the white house says there's evidence that protesters are paid provocateurs from outside ukraine.

>> a central banks as economy continues to recover even with last week's sales tax increase. >> barclays settle the first lawsuits. >> boris johnson has launched medcity today in an attempt to hubte a medical research that will join london with oxford and cambridge. >> caroline hyde is live from imperial college london with more. this is basically launch date for midcity in london. is.t i'm very pleased to say them i'm now joined by the executive it is dr.dcity,

elliott foster. tell us first of all about what london artie offers in terms of life sciences heard >> we have in london some of the leading medical research centers. some of -- five of the top 10 universities of the world are based in london. million patients are available for clinical trials with a whole host of diseases present. some of the world beating discoveries, much of which is focused around the university complex and a mention. >> what sort of businesses have you seen eating enticed into the >> of london. is it financial services and banking services? londony helping propel forward in terms of biotech? the reasonsne of

for closing the gap. one of the ambitions of midcity is to bring those two -- of morety is to bring research and investment. >> we're been talking this morning that already is 50 billion pounds a year in turnover from the life sciences. how much bigger could this be? how can you take on the might of the likes of boston, which is a real world hub and later in life sciences? >> austin, in terms of investment, somewhere around 10 times more than we get in london and the greater southeast. in terms of output and numbers of publications, numbers of new discoveries, they're very similar. the gap between that investment and the scientific output is what we're trying to address with medcity and through that

grow the number of jobs and businesses and the number of new medicines coming to patients. >> what are the tactics? at the moment you're the have the pr guru himself, boris johnson, who is very good at singing the praises -- the praises of london. how else are you going to be pushing this forward, driving that investor up site? >> one of the things you have to do is make sure everyone understands what is available here in london and the greater southeast with respect to life sciences. one of the things that medcity will be aiming to achieve. support,r government

the academic community, and business at all aligned around this mission to make london and the greater southeast a hub for life sciences. >> has a been a worry that we were losing business interest at one point? in pfizer.background was her worry that we were losing our place in the world or were we just turn to accentuate where we already stand? >> i don't think there was a lost. the farmers pharmaceutical industry -- the pharmaceutical has artie had a presence here. big pharmaceutical companies have been thinking about doing research and making discoveries in a whole new way, working with academic institutions and other businesses. in aeven have set up

number of pre-competitive areas. all of which lends itself to the medcity ambition. >> your artie chief executive of another company which focuses large on the skin. what is the greatest southeast -- what is the forte when it comes to life sciences? is a cancer that we seem to be pushing the boundaries on in terms of development? >> clearly, everyone is trying to find ways of treating cancers andhe population ages regenerative diseases needing regenerative medicine. things like dementia and parkinson's grow and grow. the number of cancers which occur are growing. are london and its academic institutes. next year we will become the forefront of that research.

from a business perspective, the access to those 8 million patients is very important. in my own company, nothing gives me greater delight and to be doing clinical trials in this region with our advancing medicines. wonderful speaking to you. actually seeding in with dcity. will see whether we can raise more than 50 billion per year to make it bigger and take on the likes of boston. back to you in the studio. medcity.ry latest on nasa breaking news. cracks we have some evidence of the fact that the british economy is on track. we have been talking about the life-sciences angle and industrial angle. we just had some very strong manufacturing and industrial

data out of the british economy. only read the numbers at the bottom of the screen. the pickup in industrial output number is significantly stronger than anticipated. to can see the pound popping 1.67 against the dollar. spritz is developing software that streams written content one word at a time. the app is perfectly suited to the tiny screens of mobile devices. >> is more efficient, apparently. so could spritzing displays a parent reading? sam grobart reports. these racks and shelves contain a lot of books. >> for thousands of years, we humans have been pretty good at the whole reading thing. in most places we do at the same way. restart start with our eyes on one side of the page and remove them across to the other. and a company called spritz is

looking to change all of that. consider presenting words and sentences that i scan over, it presents words sequentially, one after another. why would you want to read this way? there may be to benefits. for starters, if you are presenting things were better word, you don't actually need a very large display to read longer texts. in fact, samsung has hooked up with spritz to include the technology on its latest line of smart watches. there may be a second benefit heard 80% of our time reading is actually spent moving our eyes from word to word and refocusing on each one. if we are have to do that anymore, in this case, the words come to us, we can read, spritz says, faster. the company's research, people using spirits often settle in at around 350-400 words per minute. this is a -- that is about twice as fast as normal. there are some outliers reading at 1000 words per minute heard

research has shown that after around 650 words per minute, comprehension starts to fall off a cliff very in some cases, that would not be so bad. spritz says they want to account for 50% of all reading within two years. that is a pretty lofty goal, but the company thinks it can make some inroads into the shorter form reading that we all are doing. no, you're probably not happen to read war and peace while using spritz, checking account inbox away for train, sending it -- sending a quick text message from your wrist. it has more to do with just glancing at and burning through. >> 2-wood via? >> yes. it?o we buy >> yes. i spent a lot of time on trains moving around or your cause of different devices.

the ability to get through stuff fast. that works. >> always faster, quicker, more efficient. will keep talking tech and efficiency. efficiency is number one. ands gill is the cofounder ceo of go squared. what isuld talk about happening in nascar. planet drum at nascar. speeding to victory after defeating defending champion. person sells to extreme heat and rocky terrain at the infamous marathon. it is the toughest endurance race that there is. competitors run approximately 250 kilometers over six days in

deep sorrow. >> -- in the deep sahara. to mercedes drivers battle to leavein an attempt the other cars far behind. >> is time for today's pulse number. it is $14,000. that is how much was paid for this golden egged at a market in the u.s.. the buyer was planning to melted down and sell it as scrap metal until he realized it was a rare masterpiece. a faberge bag is worth tens of millions of dollars. it will go on display in london at the end of this month.

>> welcome back to "the pulse." >> let's talk about what is happening in ukraine. tensions rising in the country. pro-russian supporters continue to occupy government to links in the east of the country. ryan chilcote spoke exclusively with the countries acting foreign minister. >> in the last 36 hours we have seen armed men seized buildings in three different cities. places, people say

they will boycott presidential elections and that they want to hold a referendum in may, where they will ask the people in their regions if they want to join russia. i spoke at the ukrainian foreign minister this morning and i started by asking him, we saw what happened in crimea. what is different about what is happening in ukraine right now? is thatifference ukrainian authorities in the region and ukrainian police are taking measures and actions to normalize the situation on the ground. successful.quite yesterday, since this morning are the administration building kiv is being contrarily -- controlled by ukrainian authorities. internets, -- in doentsk the

building is under ukrainian control again. separatists are still controlling the regional administrations. however, they agreed to to give up another building. >> referred from the russian foreign ministry saying that ukraine must stop military preparations in the east of the country, presumably they're talking about how you handle the situation with these government buildings. what do surge to the russians? you say to the russians? that the biglavrov number of those people who are now protesting in eastern ukraine are not local citizens. most of them have come from russia. i warned him not to think about

protecting them in eastern ukraine. the scenario that was used by russians and other parts of former soviet union, for example how my in georgia. position, the ukrainian government has enough power to control the situation in the ukraine, including the eastern ukraine regions. it is not military preparations, is it a lease that was involved. to police were involved to calm the situation and make it normal. >> speaking of foreigners in u.s.ne, there are 150 military specialists, they say, working for private security

firm called greystone with links to the u.s. military, working in the ukraine. u.s. military specialists in ukraine, according to russia. is that true? >> no, absolutely not. it is just russian propaganda, nothing else. we do not have any information about this. however, we do have information, and we already deported and number of russians who have been in the eastern ukraine revoking the situation. violating ukrainian laws. >> clearly, a very dangerous situation. we will have to keep our eye on it in the ukraine. there are just 40,000 troops just over the border. you have russia warning that there could be a civil war as a result of these events. russia warning ukraine not to take such action in the east to establish order. we will have to keep an eye on

it. ukrainian interior minister speaking now. russian foreign minister speaking at 10:00. >> great exclusive interview that you just had going through this situation versus the one in crimea. >> the armed men that are in two of the three government , these are legislators or local lawmakers. they are just armed men that have taken these buildings. there's a big question whether they have any kind of administrative control over the regions that they are in. when they say stuff like we are going to boycott the national election and we're going to have a referendum where we're going to ask the electorate if they want to join russia, it is not clear that they could actually pull these things off. unless of course there was some russian assistance. >> ryan, thank you so much. we'll be following the situation

very closely in ukraine. >> up next, airbus is showing off the interior of its new a350 for the first time. we will give you a special tour, coming up next on the pulse.

welcome back. you're watching "the pulse." we are streaming on your tablet, your phone and of course on bloomberg.com. it airbus has artie shown us with the outside of its new a350 looks like. now it is showing us with the inside looks like. that is ahead of the in-service launch later this year. this is the company's weapon in its fight against the very successful boeing dreamliner, which has had idea problems. just howard compares the two planes. >> meet msn2. it is a show and tell for airlines, a.k.a., potential customers. airbus offers superior level of passenger comfort. boeing said the same thing when the dreamliner started flying back in 2011.

how do these rivals stack up? on the inside. a cabin with over five meters, means they will really be able to pack them in. the dreamliner has a max of nine seats across. it is just narrower than its rival. breathe easier on an a350 flight, thanks to a new aeration system. it changes the air inside the cabin every 3 to 4 minutes. lower cabin pressure at 6000 feet makes for a more comfortable ride. dreamliners have the same lower air pressure, to come up but are also equipped with special filters that 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 scene, the a350 has a full led lighting system that has 16 million color options. not all in operation at once.

fancy illumination must be a theme because the dreamliner sports one, too. it mimics sunrise and sunset. >> diverted from a resident play? >> the thing that i am waiting for is when they get rid of all the windows and we just have screens all the way down the side of the airplane that mimic what is going on outside. >> my question is if you fight more for that situation. the second hour of "the pulse " is coming up. >> i just mobile analyst daniel gleason. be talking with more

when we come back. int two. k ♪

>> samsung slides. profits fall as the biggest smartphone maker -- cheaper devices. office -- turns off its xp operating system. -- more referendums to join russia. a warm welcome to those waking

up in the united states. i am guy johnson. >> i am francine lacqua. this is "the pulse." a big date with go squared. tracks -- >> will a new speed-reading app revolutionize how we read? >> falling prices for galaxy devices hits problems of -- profits at the company. >> as expected, a slowdown from previous years. 8.4 trillion, you can call it a billion dollars. everyone is talking about one thing. they are talking about a market that is potentially a saturation point. it is a debate that is

happening. it is specifically a premium and of the market. -- end of the market. the margins are smaller. it is a problem for them. >> it is almost like what the luxury center went through. it is a lifestyle product. them nowessure is on to protect margins. that could be the story going through the next 12 months. if you look at samsung, they have to do something. t toa it's the green ligh move out of the mobile business today. the margins they got back in the 1990's with the phones were bigger than the margins that samsung gets today. is drawn into the low price point debate. they have phones in that market. is that apple me has avoided going down that

route. there is a rumor they would do it last year and they have avoided doing it. who is at risk here going forward? is it samsung? is apple doing the right thing avoiding it? >> none of this surprises me. you have the high margins in the beginning. that is when companies like samsung make their name. the chinese come in and they can monetize the products and make it available to everyone. margins come under pressure. the battle for samsung and apple is not in smartphones. that game is done. time to find something new. what is going to be new? what will deliver the margins back to these businesses? >> where will it come from? they are talking about the likes of it being a watch, a gadget watch. iwatch, no sign of it right

now. where does it come from and do they push their money into what exists already, which is the smartphone? over 30% of the revenue for smartphone sales went to samsung. bigger opportunity is for apple, who were at 15%. >> they have not grown either. when you look at disruptor technology, you do not know you wanted until two months -- >> we did not know we wanted an ipod, and ipad. today is an incredible day in the history of the tech sector in many ways. we have nokia. the story is happening. they're getting rid of their mobile phone business. we were obsessed.

time a nokia every came out, we were assessed with the business. -- microsoft is turning off xp today. pcs in china still operate on it. you are looking at around 500 million worldwide. talk about the inertia that exists in the system. >> what are they downloading? mamet you don't get security hacks, the fixes that you have been getting. withsoft would come up patches, they're going to stop doing that. they have been warning about that. the problem is, all of the subsequent windows operating systems are based on this. there is some commonality as the systems roll forward in time. maybe, therefore, there are holes that exist because of the problem. maybe the whole system becomes a little less safe. 90% of computers still work on

wendy's -- windows. we were obsessed with how small the next nokia phone was going to be. it was the flip phones, then it was the nokia phones. >> what are we talking about today? how big is the next iphone going to be? things change. >> jonathan ferro with the latest on technology. launches midcity today. he hopes to establish a golden triangle of medical innovation by linking london, oxford, and cambridge. caroline hyde is live with more. talk about the importance of the life sciences in the british economy. my oh sotalk about

stylish lab coat. we're showing you the leaps and bounds pushing and drug development. u.k. has such a rich history. penicillin, the dna structure we found in the u.k., they want to build on that. the 15nt to build on billion pounds being brought in per year via life scientists. it is only 1/10 of what boston manages to bring in. johnson is boris trying to push forward his idea medcity. >> why would london prove a good addition to the expertise and cambridge and oxford?

>> the proximity helps. -- when you are across the atlantic in the northeast, it is a small region. what london really has is a wealth of expertise with universities. you have imperial college, kings college, the amount of research already being done here. businesscial and sectors are here. they want to leverage that, to bring in the investment so they can do the pr stuff that boris johnson is good at, to show the with thecan be twinned business and finance and hopefully the money that london can do so well. >> thank you. caroline joining us from imperial college. ofm obsessed with the idea boris johnson in a lab. that would be worth watching. a lot of glassware.

>> like a bull in a china shop area and -- china shop. ryan chilcote has the story on ukraine. investors are once again more concern. it is a surprise. >> we have armed men seizing government buildings. in three places, they are saying that they want to see a boycott of the presidential election, set to take place on may 25. area, with about 10 million people living in it. it is different from crimea in that sense. what is also different is their our men -- is that there are men in the building that are not actual lawmakers. when they are saying they have

declared themselves an independent state, the question is, do they have the administrative power to do something like that? it is not clear. is theer difference ukrainians are pushing back. talk about what is happening in terms of the diplomatic language and maybe that is the wrong phrase. veryssians are being aggressive in their language and assertive. they are saying if you are planning any military operations, to clean up the chaos in the center of the cities, you should think again. they are alleging that the u.s. has 150 milley -- military specialists on the ground. ukrainianth the foreign minister and the idea that there are u.s. servicemen or military specialists on the ground is nothing more than

russian propaganda. it will take control of these buildings. they already have taken control of one of the three. protesters and another will surrender their weapons. this will not be a military operation. it is a police operation. goes.s. says if russia into eastern ukraine, that will mean sanction. nato said that would be a historic mistake. >> you will bring us all of the latest. ryan chilcote with the latest on the situation in ukraine. >> we are watching this morning's investigators narrowing the search for the missing him a lesion -- missing malaysia and jet. the black boxes have a 30 day lifespan. 370 vanished a month ago. >> the bank of japan is refraining from adding extra

stimulus. it pledged to maintain its monetary basis of $680 billion a year. >> -- were ordered to pay a combined $9 billion after a court found they hit the cancer risk of their diabetes medicine. they fell as much as 7.8% in tokyo trading. you want to read a novel in 90 minutes? a new speed-reading cap says it has the answer. that will show you technology that may refine your reading habits. ofwill be live with the ceo ghostsweb. -- of gosquared. ♪

>> welcome back. you are watching "the pulse." we are live in london. what has been happening with the pound this morning -- the sterling has been having a search. -- a surge. it may be pointing to the fact that the situation the british economy is beginning to get better.

that has always been a concern that living through a credit fueled bump that has been driving at -- driven out of the housing sector, but we are starting to get descended out of manufacturing. that is the data at the bottom. .9 versus an expected .3. profitung posted decline. for more, we're joined by daniel gleason. daniel, great to have you on the program. how do you win the battle? it will have to be bundles. the life of samsung, you see sony doing it as well. it is no longer just the smartphone people when they go in. there is usually an accessory bundle. bundled the gear smart

watch with the galaxy note three. you will see a lot more of this going around. because some of the companies like samsung and sony have these other capabilities, which they are able to leverage, which some companies, many of the smaller chinese brands do not have the capability. >> that is how they protect the top end of the market. battle is with the chinese guys at the bottom. the smartphone lifecycle is getting pretty mature. you have seen a commoditized ditization.ommo how does samson battle these guys? brands of these chinese have had a great track record of expanding outside of china. they have been really tied to their operator partners.

the only successful company we have seen has been tcl. that is because they bought the alcatel brand and leveraged that. won'tt does not mean 2014 be the year that they go into international markets. >> it can be. i think lenovo will make a push internationally. we are seeing some slow, steady from them.gress the big difference between this wave of chinese brands versus the older wave is this is consumer focused. i think they have a better chance of succeeding. -- samson pushed out their new 5. this is not a radical re-innovation of a smart. what needs to happen to keep the market ticking?

>> the amount of innovation for many of them is relatively minor compared to what we had a few years ago. versusom the iphone 5s the iphone 5 or the iphone 4s. it is a diminishing returns in situation on the high-end of the market. what else can you bring outside of the smartphone experience. whether it is the smart watch or content offering like sony is bringing. ma'am you go through some specific examples of smart phones, for example, senior -- in not looking at you general about niche is. persond be the working or niche is that mean they will pierce into the market.

>> even nokia's flagship was more of a camera on a phone. you have seen the lg flex is curved and bendable screen. you will see different designs in different ways to grab people's attention. it is a competitive marketplace. a lot of the work is making people aware that your product is bear. -- is there. talk to me about what microsoft has to do. fromt the final clearance the chinese. we have the ability to merge these two companies. what does microsoft have to do next? it isn't giving away the operating system for free. it is trying to make an oppression -- an impression. seen the windows

phones > percent market share in sales. it has some momentum. as key problem may have had it has little penetration into the north american markets. that is where most of the big developers are. apps come out later, they do not get updated. the ecosystem is stale in comparison to iphone and android. it has to be for microsoft. >> thank you for that. we're going to talk about kangaroos. that's right. meet the kangaroo boss and find out why researchers are hopping with excitement. ♪

>> welcome back to "the pulse." . we are live on bloomberg television.

to the markets, manus cranny. >> what is going on in ukraine? is it a rerun of the crimea situation? -- did ask of japan was expected. that we have aw slightly risk off day. the valuations, rather stretched, are we in a technology bubble? european technology is clawing its way back. as you break into that, the story becomes a little bit clearer in technology. the consumer side is under pressure. that, you have covered story little bit today. closing off one system, they get the agreement in china in terms of what they can do. technology, some of the names are still on the decline. a couple of other stories are making the news.

sugar, they warn -- sold million shares. production,ustrial dollar share 16706. presume that sterling is going to carry through on the upside. was to do with the revisions that we saw to the january data. >> thank you. manus cranny with the markets. $14,000 is today's pulse number. >> at is how much was paid for a golden a at a market in the united states. the buyer was planning to melt it down and sell it for scrap when he realized it was a where -- rare egg. >> we're going to talk big data

with the ceo of gosquared. >> think of the way that you read is most efficient? think again. ♪

>> welcome back to "the pulse." i am francine lacqua. >> i am guy johnson. these are the top headlines. russiaunited states says is behind the new unrest in ukraine. it is warning against what it calls a serious escalation. pro-russian separatist seized buildings or the white house says there is evidence the protesters were prayed provocateurs from out -- paid provocateurs from outside ukraine. the central banks of the

economy continues to recover, even with last week's sales tax increase. -- thelays is set to first lawsuit. this comes weeks before the trial was scheduled to start. the trial would have featured testimony from former barclays officials. when you read, you're used to squinting -- scanning words. start up ish reinventing the way that we read. sprint streams content add one word at a time and you can double your reading speed as a result. sam grobart reports. these contain a lot of books. thousands of years, we

have been pretty good at the whole reading thing. 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. isew company called spritz trying to change all that. it presents words sequentially, one after another. why would you want to read this way? there may be to benefits. if you are presenting things word by word, you do not need a large display to read longer text. samsung has hooked up with spritz to include that technology. there may be a second benefit. 80% of our time reading is spent moving our eyes from word to word and refocusing on each one. if we do not have to do that anymore, the words come to us, we can read, spritz says, faster.

spritz often settle in at around 352 400 words per minute. it is twice as fast as normal and is some read at 1000 words per minute. research has shown that after about 650 words per minute, comprehensions starts to fall off a cliff. in some cases, that may not be so bad. they want to account for 16% -- ing -- 15% read of reading in two years. you will probably not read "war and peace" with spritz, but checking your inbox, increasingly, there is a whole -- of glancing at them burning through. it might change.

another disruptor. the way we read. now, it isfrom surveillance with tom keene. what are we looking at today? -- i lovelooking at that thing by sam grobart. the speed of reading. today isre going to do look at ukraine. richard fall craft will join us. --icular only it's particularly its relation -- they need a stable ukraine to do that. we will be looking at the equity markets. tobias will join us from citigroup. we will talk to him about the selloff and that the highfliers like twitter and facebook. >> i have bad news for you. new york has been knocked off a list of the 10 top forest of destinations by tripadvisor.

it has been replaced by rome. ouch. of theve in the heart tourist area in new york and it is booming. it has been a very cold spring, but other than that, it is a huge part of our economy, as it is in rome or london. one of thenk touristy destinations is new zealand, with the successful trip of baby george. think they are focusing on cities. istanbul is number one, wrong, number two. >> i will go is tumble number one, any day. if you have not been to assemble, make it part of your future. >> i would probably truth -- choose new york. >> the italian embassy is on the phone as i speak.

, talking about the biggest names falling out of favor with investors. >> is it a shutter, a change? worse three days since 2011. volatility is rising. nasdaq chart. the that begins to tell a slightly different story. it has been a very recent selloff. some of the names, it has been we have, 500 days since had world markets do any kind of a cleaning out. view"s on an "bloomberg piece this morning. twitter, linkedin, facebook. this is their performance here today. element toconsumer

this technology change. nasdaq up an eighth, one percent. these are an attractive opportunity. that is what makes the beauty of the markets. >> thank you, manus cranny. >> let's continue this conversation. we are turning to data crunching. we want you to meet the guys that watch what you're doing when you're online, whether it is a website or an app. stays one step ahead of social media. joining me now is james gill. great to have you on the program. should we start at the start? what does gosquared do? this is crunching how we use the internet to buy or look at things, to have a better understanding of what we are

enticed by, and what we consume. bit like a bloomberg terminal for websites. it gives you insights into what is happening on your website right now. what content is popular, what is driving people to your website or your app and how can you understand the usage of your website or app? companies come to us. it could be a high street retailer, they put a small sip it -- snipit of code on their site and we analyze it and give it back in a simple and easy to understand report. >> so many ceos are talking about how they use the data to enhance sales and consumer experience. it gets into the mind of the consumer. what is the most surprising trend you have seen? the thing that is really interesting is how fast

everything is changing. peoplegrams of how much are consuming content on mobile, desktop. the changes in the last two years have been huge. as impact of social media well. people spend more time on social media. for a than googling product, they are taking recommendations from friends, facebook friends, twitter friends, and taking that and making her kissing decisions. a ton of trends we are seeing -- and making their purchasing decisions. a ton of trends we are seeing. i do not think anyone understands -- the whole industry is still in its infancy. is a buzzword that gets all the time,und but it doesn't actually answer many questions.

-- more people want to get insights from the data. goes on, we see more and more valuable use cases for being able to understand not just a small subset of information, but to really get an understanding of a business and their customers and trying to help people the actions they can take off of that. have someone talking about the way chinese consumers by their clothes. there is a big line to trying on clothes. stuff to be on wechat and like that. >> a big turn that is more of a buzzword is showrooming. they try things on and then

popping back home or even on their phone going and buying that while they are still in the store, but buying it online. that is becoming the trend and it shows this shift of moving from real world to online and purchasing habits. the nsa story. talk to me about how that has changed the perception of what you do. ofand has shifted perception larger corporate. people are paying more attention to how google acts to how facebook acts and twitter. when you look at the vast --ntities of information of the companies like google have, and is not just your web browsing data, it is your e-mail, everything. being ase are transparent as possible with how the data is used. we are in this position where we are not using it as much to sell ads, which is what a lot of

people do. we're using the data to help businesses improve the experience of their customers. that is a nice position for us to be in. the whole nsa scandal has made consumers a lot more aware of where their data is being used. it goes up into this cloud. where it is ago then? for that.ou james gill, the ceo of gosquared. we will also be asking about other trends, including one industries harness this big data better than others. >> cr couple of minutes. ♪

>> welcome back to "the pulse." on our techry conversation. we are with james gill and an investor in his business, eileen burbage. she is a partner of passion capital. eileen, let me kick off with you. why did you put money into his business? >> because of james and the founders. are what,t them, you 17? they had been running their business four years out of their respective bedrooms while they were in secondary school, and making good money. are 17, ares, who making money, think about what value we can lend and how we can increase the value of this is this over the next few years if we inject investment capital and try to help them a little bit.

we started talking about big data about two years ago. it is something we are looking into, but we don't know how much we can get out of it. >> i don't think we were using the big data thing. what we were thinking about was what kind of traffic people are seeing, what kind of actions people are taking, what they might want to do. they will want to harness that data. google wasn't even doing real-time analytics. they were ahead of the curve. it is the biggest opportunity. going back to your point on big data, a lot of the technology has been happening behind the scenes, but only recently has pute been a turn -- term around it. this is the opportunity to take the big data and put it into something more useful.

in terms of our position, i am excited by what we can do for retailers because there is an opportunity to help them grow. >> where are we? have got inwhat we terms of the data are we utilizing productively? >> it has moved a long way since eileen first invested. we are still pretty much scratching the surface. charts andlook at graphs to understand what is happening with your business. it seems ridiculous when you think you could be giving people action. >> explain how that works. iam browsing on a website and am trying to figure out if i want to buy something. how different is that, with the signals i am sending to you then me going on a website and saying i know what i want and i am going to buy it. how easy is it to determine the difference in the ways people shop? >> there are a lot of patterns

people exhibit. is impliedng is what about the section that you're going onto. also, the amount of time you spend on the site, the amount of time you spend on each page. if you are on a tablet, you are pretty chilled out, probably in your pajamas on a saturday morning. if you are on a desktop, you might be at work or your lunch break. there are all of these different factors that come into helping understand what people off intentions -- people's intentions can be. this is something that everyone should be doing, just exposure. market

>> we thought e-commerce and retailers make the most sense because they can monitor the impact. publishers, hand, anyone who has anything online will want to know what they just read, what pages were they visiting before they came to this page, webpage might they go to next, what might they be interested in to keep them on this site, to keep them where i am, or send them off to where i am getting generation revenue. the website will want to know more about what their visitors are doing. users story is that ios spend more money than android users. is that always going to be the case? are you detecting trends that that is beginning to change? >> one of the challenges for android is a lot of users do not realize they're using android. they buy a samsung phone, they bind hd phone, apple has an

inherent brand trust. they make a payment through the ios app store, there is an element of trust that is inherent with in apple's brand. google is making more shifts to enter the google name into android. google has a trusted name in web data and payments. i think a lot of people do not trust in samsung. it is about trust and a slick, simple experience of the payment itself. having to enter your card details is a nonstarter for a lot of users. everyone pretty much has an itunes account. is why there is a lot more money exchanging hands on the ios. >> james, eileen, thank you so much.

memo we will take a break and be back in a couple of minutes. ♪

>> welcome back. we are live on bloomberg television, streaming on your tablets, and we are on bloomberg.com. the big standout story is what is happening with the pound. a big jump for cable.

of 1.67.ading north we had big data out of the u.k. earlier today. theindustrial numbers in manufacturing date out today. significantly better than anticipated. that is how the pound has reacted. we are getting up to interesting levels. can we break through them? that is the big question. joined by ryan chilcote and jonathan ferro. we are watching ukraine. there is an uneasy feeling amongst investors that this may escalate. >> i am watching the ratcheting up of rhetoric. commentseen strong from the russian foreign minister in the last half-hour, saying a violent response to the ," would be unacceptable. russia has warned it could be a civil war in ukraine. they have 40,000 troops just

over the border. important to pay attention to what the russians have to say. the u.s. are talking about sanctions again. clearly, we need to keep our eye on ukraine. off in theking united states. the previous earnings seasons was not that bad at all. on thelook at earnings bloomberg terminal, 73% of the company is on the s&p 500. that is not a bad delivery. --t we are worried about >> all companies managing expectations really well. ofwhat is going on outside company earnings, political risks, what banks are up to. i am going to be listening this afternoon. i will talk about euro-dollar. guess what we were the morning we opened before the ecb?

one .3767. they did not do enough to push that one back. he did not change his position and speaks again today in berlin. they have to get the nod from the bundesbank. the pound is going up. >> xp, 1:00 p.m. eastern time. microsoft turns off xp. this is the operating system -- does anybody still have -- i have two laptops at home that operate this. massive security potential implication here. half of the computers in china still run this. 500 million worldwide and they are turning support off. it is going to be an interesting day in the world of technology today. >> guy johnson has warned you,

right here on "the pulse." is up next with tom keene and his team. >> you can follow us on twitter. day.a great rest of the we will see you on wednesday. ♪

>> this is "bloomberg surveillance." orchestrating detainees protested eastern ukraine, according to kiev.

the imf and brussels watch from a distance. earnings season begins with alcoa. tobias love goodrich -- tobias levkovitch joins us. connecticut holds off kentucky. this is "bloomberg surveillance ." live the from world headquarters in new york, it is tuesday, april 8. i'm tom keene. joining me, scarlet fu. he darkens the door -- way too early for erik schatzker. he joins us this morning. i stayed up and i watched a little bit of basketball. >> four games, three games left in the nfl -- nhl season. of canada's seven nhl teams made the playoffs. the worst in 41 years. >> because of that, we have bkovitch. >>