>> tech troubles. selloff in the sector intensifies. >> will the marquis device protect its lace as the world's largest smartphone maker? we speak with one of its top execs. >> a victory lap? maybe. greece comes back into favor with international investors. good morning, everybody. you're watching "the pulse."

i'm guy johnson. >> and i am anna edwards. we had to the world pizza championship to find out how to .ake the perfect pizza pie >> definitely thin, always thin. then versus mosquito. physicists taking on the world's deadliest bug. huge -- qeith that seems to be the overriding factor. let us not forget that greece thesuccessfully reentered debt markets after years in exile. toela merkel is jetting in athens for talks with the greek minister. our european editor joins us now. david, what a difference 18 months makes. last time angela merkel was there she saw herself in an ss uniform.

they were burning effigies. what kind of reception was to get this time around? >> it was incredible last time. we have some pictures of that trip, of the crowd, last time as well. our member being in a taxi and hearing this dj just blasting angela merkel, calling her a nazi, saying that germany was trying to invade greece again. it is not like she is more popular there now, but i don't think you see anything like that sort of reception. one of the reasons for that is that critics are better at crowd control. they have 7000 police out on the road here they will lock down that entire area around the square and the areas where she will be. i've got to say that things have improved. look at the 10 year bond yields back in october 2012 when she was last there. now it is below six percent. we have seen this very successful bond sale going off yesterday. "wall street- journal" reporting that black

buyers. one of the big she will be meeting with small and medium-size businesses and some start up people. then there will be a formal meeting with some rs -- with to look out for is a think she will have a suitcase full of goodies. one of them will be an announcement of a development greece/germany investment company. if you had a look at what is been going on all week, guy has been talking about the quantitative easing. that is one of things is pushing it. look what is happened in ireland, italy. notes, portugal as well. all these yields have been coming down. speculation of quantitative easing. there has to be something more than that. remember when we saw

a downgrade of a peripheral nation, they'll be running to get in front of a camera to talk about it hurt now we hardly talk about the positive news. fitch hasng that raised its outlook for portugal. the point is, it is still below investment grade heard even if there was quantitative easing, it is questionable whether the european central bank would be allowed to buy portuguese debt. we're still seeing those yields falling. >> there could be plenty of other issues as well, like not financing governments. we will get back to base. david, thank you very much, indeed. >> the imf and world bank's spring meeting in washington. growing as russia threatens to halt gas supplies to the country. for more, henry mayer joins us

now from moscow. what can the west do to stop president putin from turning off the tap? meetings. is holding there is an expectation that they will reach agreement on an aid package for ukraine of up to $18 billion, which in turn would unlock international financing of up to $27 billion. that is a significant amount of money. is the first time that western countries come a which are backing the new government, are actually putting money in the table. the problem is that the russians are continually upping the ante. president putin sent a letter to european leaders in which he threatened to cut off the taps if ukraine does not pay its gas bills. he put the total debt owed by ukraine to russia at around $40 billion. of which $37 billion is related to gas. even if this package is agreed, it may not prevent that happening.

will it accelerate the prospect of the aid package happening? could we see that this weekend? it is anticipated that that agreement will come this weekend, yes. the director general of the imf said there was broad consensus within the imf on making this decision. >> we will leave it there. henry meyer joining us from moscow. >> let's talk tech. how are you doing? >> my heart rate has dropped from 170 254. devices becomeed its divide available today. caroline hyde has the details. >> way to talk about the market. we are offering a bit of a tech selloff.

once again we're seeing tech stocks under pressure. jonathan ferro is covering all of that. before we get onto the tech, let's talk tech stocks. beenthis theme has bubbling for some time. there's probably a reason behind the drop off. put it into context. how should we look at this? of stuffeard a lot about this. there's no agreement on what is behind this selloff right now. or as fives in my hand. if you look at some of the companies that have followed over the last couple of months, >> of facebook, google, twitter over the last few months has been remarkable. they're coming off all-time highs. they're not coming off 2014 highs, that is what is really key here. >> if you made the chart of the longer, if it wasn't two months, if it was two years, what would the selloff look like in the context? >> this would be nothing but a little blip third is the key art

of all of this. is this selloff a correction that we have not had for a while , or is this something that is a little bit more than that. it will get a little more aggressive around the corner. >> we are linked. we are synced up today. >> he's wearing a device that you can monitor. >> i know. if only i could make him walk around the building. what is is i can analyze what his pedometer is like. this is the s five. is currently hooked up to your gear fit. is a good-looking piece of equipment. it has some nice features. a fingerprint sensor, a heartbeat sensor. it has a longer battery, a bigger screen and water resistant, always necessary. but not as good as many people wanted. it is not a revolution. they're throwing money at the situation.

$600 worth of features. free applications and paypal vouchers. the fight is on to remain top dog in terms of market share. >> these two stories linked together in my mind. yet the amazing evolution of the smartphone which is gone from a really clocking difficult device , the final form factor of a device we're looking at. you have is really aggressive rise up. look at the stock prices and now they're struggling to make headway. >> they are sacrificing profit. >> if you look at the stocks that have taken a hit, it is stocks that are based on high-growth. , they areonal stocks not the stocks that have been hit over the last couple of months. if you have a debt on high-growth -- >> you just normally is so to freebies with cereal boxes and washing powders. discussing a portfolio.

look, he said, what will the e in the u.s. q have any effect on how many twitter users there are? >> these are high risk stocks. that is why the selloff. it is not because they are linked in any typical way to what the market is doing in that way. i don't-- if facebook are selling out because of their fundamentals. what may be selling off more is a likes of the companies that i inc. are at their saturation point. now the struggle is on two can they innovate next? it is on the wrist and with wearables at the moment. the mobile sector has grown incredibly. a forceds is just

break. maybe our great us to come down i am more >> concerned about wearables. i know people who went out and bought the fuel band when it came out and guess what? they don't wear it anymore. >> check out ebay, the amount of galaxy gears on it are enormous. >> you can pick one up for 60 or 70 pounds. to do these people want them anymore? ,> many of these devices samsung is a good example, they would try to sell you into an ecosystem. it is a real trend of the technology space. there tried to keep you hooked. >> the ones that are attractive are the ones that don't. the galaxy gear was not as much of a success. it is because you have to have the tablet or the smartphone from samsung. >> that is a big problem, i think eric >> lg has one.

except your smartphone, but it doesn't matter what it is, regardless of whether it is android or ios. maybe that is the microsoft view, if you can't beat them, join them. jon, thank youjo very much. >> we're going to play some music now. inflation coming in below the government's 3.5% target. that indicates room for china's premier to boost economy with the bitter stimulus. recalling 156,000 vehicles in the u.s.. they're calling back cards with in-line six cylinder engines because of a defect that could potentially damage the and in -- the engine. their recalling vehicles that at 2012.t between 2010 >> stephen colbert will replace

david letterman next year as the host of the late show after letterman's 33 years on the show. cold air is best known for playing the character of a staunchly conservative host. he will drop the character in the new role. we will see just how much of the character disappears. >> how much do we know the real man? are we on the verge of three bubble?g another we will discuss that next.

>> i would say that when the united states withdraws come everybody loses. when the u.s. engages and exercises legitimate leadership, things improve around the world. i would say to exercise that leadership. -- i would say do exercise that leadership. that taperingned is having some negative side effects. our next guest says that lagarde has not learned a key lesson from the financial crash. talk about tech stocks this morning. strategist at socgen. he is been bobbing around the world for the last month very probably has a good take about what is going on in the four corners of the world.

the four corners are coming together in washington. they're all going to kick around what is happening. what conclusions should they draw? what should they take away from what janet yellen is saying and what lagarde is saying. ? >> during that. , until last may, you saw a massive appreciation by lots of emerging market currencies, anything with yields. was,e general complaint are currencies are too strong, or interest rates are too low, or housing prices are going up too much. a bit of normalization, a bit of correction, quite harsh. that is was saying scary. let's go back to the dovish thing. here we come in the last few days with markets pretty frosty again and some of those currencies going up. i give them eight out of 10 last summer for managing to get

interest-rate expectations to a better place, for taking air out of some very frothy asset prices. and yet i certainly see adam saying, christina is you're going a bit crazy. we'reyellen is saying very accommodative. then you get to asset markets were the only thing that stops him as a publicist big that the you think the central bank will stop wrapping ? >> we from falling over are moving toward normalization of monetary policies. returning away from the exceptional policies we've had in place since 2008. what we're being told is there much more scared about doing that to quickly than doing it to slowly. the u.s. is running a policy which is going to help us with prices and keep the dollar weak

and boost flows of money into emerging markets again. if you do this for too long, you undo what i think of as a good workout i'll see normalization. kickstartll they normalization in europe again? >> if we have a banking system where we have more equity, less leverage in the banks, then a securitization industry that gets money to those who want to borrow it more efficiently through things like -- >> and there is cutie as well, which is kind of nice. >> it all helps. the question is, how much is this going to do for house prices in germany and bond prices and griese echo relative to what it does for bank lending, economic activity, unemployment, things that matter to real people. >> you have been traveling, 20 flights in 12 countries in the

last few months. the would we do topics at forefront of most investors minds? more qe from japan? has it been china and growth? what are the worries? >> china growth is a big worry. what investors want, and a sense, are safe harbors where they can earn yields. that is what they want in this world's most of all. there's also some of that is you have overinvestment in the company. we have overinvestment in the corporate bond market or peripheral dread. is, ancert everybody has hard landing in china would be disastrous. i think with uncertainty about how serious -- about how u.s. monetary policy will play out. with an adjustment from zero interest rates and low interest rates finally happens. fewer and fewer concerns about a financialpe and

market senses,. the economist barry very growing, but it is taking a long. along. gtaking a >> lagarde has been banging that drum a little bit. >> what we're doing in europe now is the other side of what we did at the start of europe. we have deflation in the countries whose real economies got to hide. they're having an adjustment without the currency moving through deflation. he of house price inflation in is only a tiny echo of the inflation we saw in spain back of the start of this. this is how an internal adjustment happens. yes, the right interest-rate in spain/italy is just much lower than this. although there are high fives all around for the greek bond yesterday, the reality is that

debt is much higher than the nominal gdp growth rate of the greek economy. >> thank you very much. >> lend us your ears. music streaming services are fighting for subscribers. we will take you through hits the right note. see you in a moment. ♪

>> these are today's hotshots. this is called team fighting championship third that brings together groups of mixed martial arts fighters and what can only be described as an organized our fight. the sport will be hitting screens quite literally in the next few weeks. a woman in brazil was mugged on live tv while she was giving an interview about increasing crime and a lack of police officers on the street. the thief rocher gold chain necklace, but didn't manage to make off of it. that must have actually been quite painful. >> funny how the markets are doing. ferro, over to you. >> is pretty rough out there.

guess which industry is taking the hit today? tech stocks. down inwall street, asia, down in europe, here as well. if you look at something else, want to show you something. let's look at bond yields. boring? not quite. look at the spanish tenure. australia why this is significant. look at the u.s. 10 year. was hundreds of basis points. you see ryan going with this? greece borrowed at below five percent paid candies yields in spain and italy actually go lower? it is a question people are asking. elsewhere, let me tell you what qe is not raised in. the euro right now is one dollar now 1.38. $1.30, the closer to

dollar needs to get stronger. it is about the u.s. economy. that is what is going to trade and drive these crosses. >> thank you very much. we'll take a break and after that we'll be talking about pizza very here that? pizza.t do you hear that?

>> will come back. we are live from bloomberg's european headquarters in london. >> there are the top headlines. our down worldwide as the tech selloff intensifies. the dow jones is off four percent and the nasdaq was off five percent, the worst in three years. are worried about over valuations. >> chinese inflation believe -- remained below the governments

projections. they're still a reason why the company -- gross said media coverage has been over the top. >> this whole past two months has been breaking news. quite rob ford or lindsay lohan types of headlines. the critical link in terms of what you talked about it with is thatcle talks about it would've been helpful from my standpoint in the company's standpoint for my hobbit two of spoken out and -- my hobbit -- mohammed to have spoken up. quite frankly, that is an extreme disappointment. we move on. we have a new structure edited

deputy cio structure that does better than what we had in the past. spoke about the developments prompted some introspection. that over to the fact the past two or three months should cause one to re-examine yourself. the michael jackson man in the mirror in this particular case. are you the person you thought you were or are you the person that others thought you were. >> what is your answer to that? part, i am the person i thought i was. i am willing to say that in this environment and this new our dci owes, i was less of a strong leader and an inclusive type of leader.

i look in the mirror and i like my hair. it is nice and thick as the article suggested. it can be a different style or trams at a certain level. >> what would you change about yourself? and temper it a little bit. at certainthat points i have raised my voice. is that a bad thing? not all the time. you don't get a perl unless you ofe a little bit of grain sand in the oyster. a little bit of sand, little temper, it is incumbent on a leader to promote that. not a lot. baby can bring back the mustache that he used to have. >> that is what is missing.

>> that is a moment that needs to return. >> maybe you should bring back the mustache? >> my heart rate is rising. italian prime minister is in top level management nominations from a key italian firms. we are joined now by alexandra. becky very much for joining us. from an inside perspective it is exciting how very ordinary it appears that the prime minister is appointed these people. the government have stakes in some of these industries. >> that is right. the government has large stakes in many of these. it is about 30% and the top ones. that is why they have such say.

it is a process. first of all, the government nominates and says who they want. the board and shareholders will vote. in theory, there is a process with the shareholders deciding. agm's voter seen the different than the government nominations. it is a very italian thing. whichever government gets to nominate, the nominations are for three years. these last longer than many high-end governments. >> do we have any idea at this stage who is going to be out or in? >> let us start with any of the biggest companies. the current manager may not make it. there's still a chance. he had some legal issues. we think he is number two -- his number two will replace him. he is right now running

exploration and production. he would be a great choice. the power company, he has a good choice. it he has done a pretty good job. renzi wants a new come in younger people. that is some speculation this might be internal or a political appointee. it might be a woman. he wants some women in the boardroom and in top positions. company, the current ceo has a good chance of making it again because he has not been there that long. renzi might choose to appoint a younger force and or woman to show that he is bringing change. >> i you very much, alexander. she is joining us from rome. renzi was saying in april that energy policy and foreign policy

. >> the intelligence bed. where going to stay in italy. love foodse of the on the planet. are with the former. its worldas championships. we want to find out what takes to make the very best. >> when it comes to pizza, it is not just taste that wins over the critics. you might need athleticism as well. this is the world pizza championship and parma, northern italy. it is taken seriously. from a mouthwatering marinara as to fruit -- pizzas that look like bowls of fruit. pizza makers from 30 countries

compete to be the very best. of the meat fan feast, you are no, sore. the biggest mistake in pizza making is using more than 45 toppings. people don't understand what kind of taste your time -- trying to achieve. >> the pizzas are judged on technique, creativity, and presentation. the international competitors know that if they want to do well, they have to revisit the pizzas roots. >> we try to make what the italians may care. we can form our recipe from home. pizza, is more than just it is big business according to the organizers. think of the annual turnover generated worldwide by the pizza business, we are talking about 72 billion euros. it is a growing a business. >> the chefs come there to compete.

mean cashprize could comes back to the restaurant. >> there is no bacon cheeseburger pizza there. >> i am shocked. we will not go down that road too much. i'm still working on the perfect pizza dough. i have yet to crack it. >> are you throwing it around your kitchen and a very physical way? can help burn calories. >> we're going to take you on a 'sur of the waldorf astoria latest luxury hotel. ♪

>> good morning everybody there it you're watching "the pulse." it opened in 1929. it was the most luxurious in the middle east. it only survived a few years. as of yesterday, it has been rebooted and restored and rebranded as the waldorf astoria 's latest luxury location. we checked in. >> the palace hotel of the likes, and had things phones and hot water and elevators. now a waldorf astoria costin up to $5,000 a night, guests can

expect even more. the finest italian furnishing, and aetrium, chandeliers. >> they cost about $200,000 each. for a very special light. >> my favorite thing has to be this, a tv embedded in your bathroom mirror. i think i will watch bloomberg tv while i'm having a shave. sitting in the restaurant that was once a stable, the general manager says making this hotel was -- a reality was tougher than expected. >> the main challenge was to restore the original format from 1929. in order to add additional meeting rooms and the biggest ballroom in the area. the staircase of the palace hotel of the time was to build

exactly the same way as it was before. and 150ok six years million dollars to rebuild the hotel. -- become home to the trade ministry. laws,rcoming israel's took even longer. >> this project was started 35 years ago. i am very happy of the result. the inside is high-class. it is a business hotel. it is on a very small site. it is in a very good proximity to the city. similar tor is very the waldorf astoria in new york. >> for waldorf-astoria should last a lot longer than the original hotel.

a lot of history there. a lot of history. >> a lot of tvs in mirrors. that is a good idea. urkel jets into -- merkel jets into greece today. might be over plain slightly. she is excited to get a different reception today compared to a year and a half ago or so when she was last increased. there is still some people who won't welcome her visit. outsideb that exploded the bank or the imf is taking place. things have moved more in their favor at least with markets in recent months. the economy is still contracting. yield on ae percent

five-year a realistic expected in? >> i don't think so. what is happening in credits and , it is all part of a similar thirst for yields. insee explosive growth places of high yields. we see bank lending areas. we see sovereign debt space -- c down to see rated rated sovereigns. risks in this. the markets are ahead of events. >> is it mispriced? as the market looking at greek debt with a much more german hue than it did two years ago? --the other traction

is the negative correlation. that has been a feature, it has helped where it yields a been rising in safe havens. fallinge benefited from yields in this peripheral that. what is happening now is yields are falling across the board. there is an appetite for yield. the worry for me is that is oblivious. >> this is not just about germany backstopping greek debt .urin >> there may be up broader qe program. >> that is low but the stretch. >> i agree. they have made it plain that we would exhaust interest rates. they may well buy assets back.

in theory, they could step in and start buying. that is a good question. is further down the road. eventually, we may get there with this. qethey are going to start very late when deflation is a real risk, they may have to go to extreme measures. have an elaborate portfolio of debt? that you could argue is quite difficult given the rates and the credit ratings in the periphery. the criteria would resumable he be based on capital subscriptions to the ecb. they could buy a lot less grace and they would germany. why would they need to buy them

anyway? it is much more complex than the bank of and met -- bank of anglin buying guilds. -- bank of england buying guilds. things have to be resolved as to how they will do it. it has been clear that they haven't worked this out yet. this is probably still a few months away. this concerns me that is like japan. it took them a long time to accept that they needed to do it. when they did, they didn't in small-scale. here we are 14 years later and they are having to do it in much larger scale. i compare two text ox at the moment. they are getting stretched valuations. people are going i don't understand how i am evaluating this. i feel we are in the same place

in some of these peripherals. you've gone from an extremely elevated yield 18 months ago on greece to a very stretched in the other way yield. what does this mean? where is fair value? >> it is not entirely clear. it seems like high yields would reflect the correct relative valuation. issue with got the these low inflation rates that the debt burden is increasing steadily. the debt deflation risk becomes greater, even though interest rates are performing significantly. reforme of a fundamental , and has been faster in ireland than in greece. they have been driven down together. there is a risk that we have

driven valuations to level the on fundamentals across a range of asset classes. when we get the adjustment, it will be quite british. sh.bruti >> lend us your years. we are talking music streaming services which are fighting for subscribers. we will see you in a moment. ♪

>> the morning. welcome back to "the pulse." we are streaming on your tablet, your phone a, and bloomberg.com. i emphasize streaming because arec streaming services vying for subscribers and more crucially, added dollars. their product may seem similar. there are some real differences. cristina alesci has figured out the best match for you based on your favorite car. >> come on. tired of sticking your devices? final? --r enough for

vynil? which service is right for you? think of each service like the kind of car you might buy. is like thepandora mercedes. it is high-tech it almost rhymes it tell -- self. pandora is free, but you will hear ads. if you don't want the ads, that will cost you four dollars a month. you can't always hear the song you want on demand. for that, go to spotify. flashyigh-profile and a and it is really powerful. do you really need that much car? if you're a music freak, maybe you do. killer catalog.

it comes with commercials, but do yourself a favor and pay them $10 a month and lose the commercials. you can listen while you are not connected to the internet. if you want all, you might want --.o with you're have to pick an artist or song. usingn make a playlist by beats. an option. have notice that by -- combining substance and style would be cheaper. >> i am fascinated. there are parallels between the streaming sites and the car you drive. i don't have a car at the moment. if i did it, it might be something a gay family wagon with boot space. that doesn't lead me down any of those roads. >> i like an old porsche. i don't know where that puts me.

probably not a good place. next, this is the second hour of the pulse. we are talking about the galaxy s5.

>> samsung's new phone hit shelves worldwide. will protect its place as the largest smartphone maker. to one >> we will talk of their top executives. angela merkel flies in the greece. good morning. it good evening to those of you in asia. a very warm welcome to those of

you just waking up in the united states. i am guy johnson. >> we are live from bloomberg's european headquarters in london. the cheesy details behind the search for the world's best pizza. >> ouch. let's get to the top stories. samsung's latest device hits the shelf today. it is available worldwide. we have the details about the technology you will meet or not. let's talk about the other story. there is a mass selloff. i don't have one of the bands on me, but my heart rate is high. wall street in europe have no love for tech. tech stocks are hammered, getting absolutely hammered. they are coming off all-time highs. double-digit in

percentage figures. what is behind that? there is no real consensus right now what is behind that. these are moves that were coming up some big highs. if you look at the nasdaq over the last five years, you can't see this correction. it is not even there. we haven't had one for so long because people are saying this is healthy. >> yes. we can draw a line. that is the best segues i've ever heard. getting healthy because it is all about wearables. you are brandishing one on your wrist. it goes on sale in a hundred 25 countries along with this little puppy. .> i have the gear fit very and >> it tells you the calories you burn this morning. >> my heart rate has ranged

between 51 and 170. i have burned about eight calories. the other gadget. this the cheaper version of the galaxy gear. it is an interesting move that they're making. they are basically offering .ncredible deals, freebies $600 worth of freebies. you get linkedin premium. it for fitness apps. you get paypal vouchers because this is the evolution in the phones technology. high-techsome smartphones for very low price points. you have the apple iphone. >> they're trying to say that profit is another thing.

it is all about sales. they dominate in terms of the market shares. they sold 300 million units. at the other end of from some of the other chinese manufacturers. ofy're going with freebies the smartphone way. they're also going with wearables. they're trying to innovate in that direction. one person put it wonderfully. samsung is doing r&d in public. it says try a smart watch, it is .ot the best thing it yet we are trying to get ahead of apple. -- developing to get better. >> you get an industry that is struggling to find a sense of direction. your share price is doing the same thing. >> look what is happening. the margins are getting smaller as well.

then we talk about innovation. we talked about this early in the week. i don't care what they're doing it samsung or apple right now. the only thing that people are excited about is a new iphone is the size of the screen. >> i disagree. the point of these innovations is they are stepping stones. will eventually paying for everything on our phones. developers do.e you have to get excited about some of these fit bets. here you go, where the surround. we can track what your heart rate is. >> we are joining these stories together and we are questioning whether they should be. it is only about tax because anything that one of the most there in now it is coming down the most.

it is more about the fed in some ways. >> now we are bringing macro economic sent to this. >> it is names like facebook and twitter that sold up the most. and cisco have been very stable. that is not to win since. >> the current industry is about to go through a revolution as well. they're going to lower your the insurancese company knows how you are driving. you could go the same way with this area of >> thank you very much caroline and john. we have a laptop to stop using the product. the company says the laptop factory may overheat and cause fire damage. there been three types of overheating so far.

acrossve been shipped the world today. >> it is been a big week for european bonds. and greecetart qb has reentered the debt market after years in exile. angela merkel is jetting into athens today to talk with a great prime minister. david, you've been in it out of greece. the last time she was there, she viciousted in a fairly way. there were effigies being burned. time? it going to be this >> there was really quite violent demonstrations against her. you can hear it everywhere in the streets. there.r then when i was i was there last week. the atmosphere feels like

different. not withstanding the car bomb that went off. i am not sure that is the case. --need to find out who out was behind that car bomb. will be pretty much the same it. that is it you can't fix a problem like reese overnight. you have to do a lot of hard work. she is conscious of the fact that you have high unemployment at only 7.5%. it is way too high. look at the numbers they came out and maybe they had peaked. she arrives at 3:00, she will be talking to small business companies and some start up companies. show something in her suitcase in the form of an announcement of a development bank. this may be psychologically quite important to be able to develop -- announced something. >> it seems the greek bond sale

has captured the imagination. how is that going down with markets? >> is interesting to see what has happened. if you look at paltrow and italy, all of these five-year notes are coming down. are saying this, not because of the speculation about the possibility of quantitive easing. as guide pointed out rightly, it foroing to be difficult bonds being purchased in some of these arc it's where you got below investment grade bonds. maybe it is to do with optimism about the future. raisedortugal outlook today. maybe things are slowly getting better. .> we will even on that note thank you very much, david. >> the imf and world bank

meetings are underway. ukraine is high on the agenda. russia threatens the country. henry, what can the west do to stop wooden from turning up the gas tax? >> the imf is expected to agree on a substantial aid package of -- $18 billion. that would unlock financing from the international community. ukraine to get $27 billion over the next two years. that is a significant amount of money. it is the first time western countries are putting money on the table. continually are upping the ante in this game of nerves with ukraine. gooden sent a letter to european leaders in which he said that ukraine may have its gas cut off because it owes russia money. he put the total bill at around

$40 billion. this is all part of a general strategy to increase the pressure on ukraine to agree to russian demands. of ukraine toeast be given autonomy. you -- the ukrainians have refused. >> will an agreement this weekend be helped on the financial front for the rest of the world and ease tension? >> >> of course it will be positively received. it does give ukraine a financial lifeline's. detentions are not going to reseed. we have a meeting next week is taking place between russia, the eu, the u.s. and ukraine. it is not expected to lead to any breakthroughs. the russians are likely to continue upping the pressure. henry, thank you very much is

reporting from moscow. >> up next, the latest samsung products go on sale globally. can it defend its place as the largest smartphone maker? we will ask a top executive that question when we come back. ♪

the pulse.atching this is what is happening in the currency markets. about moneyng

flowing out of the emerging markets into europe. that is when the theme of late. we have seen the turkish currency. it is coming through moody's. it is putting pressure on the country. politics are a big part of this. it was beginning to stabilize a little bit. we have more concerns as well as we will get to. look at the turkish lira. things might be starting to turn around a little bit. keep an eye on the currency. let's move on a talk about one of the big stories of the morning. sam sun's latest devices help -- hit the shelves today. by the deputy

president for samsung mobile europe. i have been wearing one of these. my heart rate has varied between and 50.d 70 this is clearly something that is important to you. let us cut to the chase. i have rent as many reviews as i can and the last 24 hours. every one of them says this looks about -- a bit like the last one. it is the final form of one of his going to be. everybody is struggling to make headway. hattie you answer that? >> it is full of innovation. there are things we have in that phone very we were listening to we haveomer feedback,

the new fingerprint scanner. we have the security on the phone that gives you payments through paypal. we have water and dust resistance. these help people in their lives. >> are these enough things to have people replace the phone may already have? >> the feedback we have received retailersperators and is authentic. we are confident. >> your packet with a lot of freebies and other bits that you get coming with it. that feels like what happens when i buy a car. the last incarnation of what it back to a lot of little gadgets to get me to buy it in the last year of a production run. >> we listen to the customers.

we embedded more things and the device. these are both hardware and software things. r&b -- rmb,lot in more than $16 billion. this brings what matters most to the customers. this is a phone anywhere will device. this is much more to the story than what we can bring it. >> give us an idea about creating an ecosystem rather than just one roddick. many technology companies are trying to not just sell you one product but get you locked into their way of doing things and hope that you buy all the products. the way of hooking somebody in so you buy samsung products in the future? >> we want to bring more to people, not to lock the men but to give them more choices. and the gear.

>> if i want to just use one of them and i don't have a samsung phone? >> it will not work with an iphone yet. it gives us much more flexibility. we are trying to offer as many features as possible. this is possible because we have an integrated system. >> let us say i was in the market for one of these things. i might buy one. i am think about buying a samsung phone but i don't have one at the moment. i have to buy the whole lot to make it work together. are you limiting the potential audience? >> we have more than 200 million people out there.

>> but you want it -- that number to go up. >> there will be a lot of additions to the system. to new to expand customers and bring as many new devices as possible. >> what is the biggest competitive place? is it from china? or is it from apple at the other end of the spectrum? where is your competitive radar pointing? >> it is a competitive environment. thanks to the research that we do, we are a step ahead all the time and bring what really matters to the people. in this device, we have a simple new feature that is a power saving mode. .hat is very revelatory and >> guy has not been active

enough. >> that is working out really well. it would be nice if the phone dated itself. >> we went to enable people with what they want to do with the phone. i think you have experienced that, running out of power at the end of the day. at 6:00 in the afternoon you have some left of the battery. you activate power save and you have more power. this is interesting to take an off-line model. >> we think we have much more to say to our customers than just devices. the way we are getting them this experience across the whole range, we are bringing phones and tablets and wearables and we have a lot more products to show to people.

which we calls experience stores, we can deliver that full experience and let people know what they can do . wearable, there is a sensor that remote controls your tv. [laughter] >> we have a kids mode for children. that will protect your phone from them. waterproof -- it needs to be waterproof. toi try to bend my wrist read this thing. >> there will be a new way of displaying the device. is that way.o use wear it the other way

around. >> these are the tricks of the trade. >> you definitely have to contort yourself at the moment. >> thank you very much. >> we will take a short break and be back in a couple of minutes. see you then. ♪

>> this is some company news.

is replacing the link and chief designer. they want to get a light -- larger slice of the luxury car market. sales at theter ingest flavoring maker grew the first quarter. >> the co-op bank says it does not expect to turn a profit in 2014 or 2015. alonso 586 million pounds. that number keeps backing up. we look at the latest products and mean to disrupt the sports technology market. there will be some smart tech and golf in the next segment. bad golf from me. it can follow us on twitter. we will take a short break.

we'll be back in ♪ just a couple of minutes. ♪

>> welcome back. you're watching "the pulse." . we are live in london at bloomberg's european headquarters. >> these other top headlines. markets worldwide as the tech selloff continues. offnasdaq biotech index was five percent. that is the most in three years. investors are worried about the valuations of tech stocks. >> china's consumer price index

met estimates. that is below the 3.5% target. that leaves room for the chinese premier to boost the economy with stimulus. >> hillary clinton's docs out-of-the-way of a shoe that was thrown at her while she was giving a speech in las vegas. she cracked a couple of jokes about the shoe. the person who threw the shoe was taken into federal custody. howet's take a look at european markets are currently trading. >> tech stocks get hammered. here in europe, they are as well. followinge highest they're downpe. one point 34%. the equity story is one-sided. here is an interest in one for you. here is the bond market.

let me shave the yields on spain. the yield is 3.1%. let me show you the yield on the u.s. 10 year. it is 2.6 i percent. the spread is about 50 basis points. was 100 basis points. this is a bet on the eurozone. the question is do we get quantitative easing from the ecb ? what does it mean for yields? where and recent auction five-year bonds of the yield of under five percent. there was a great piece on this and bloomberg new. is that optimism or desperation looking for yield? euro-dollar, it is down a touch today. bust of where we were before. he did not push down the euro. the euro is having its best week since september of last year.

the dollar needs to get stronger. the dollar is having its worst week in eight months. that is a story behind this one. and surveillance will be here in 25 minutes. they're taking their show on tour. >> it sounds much more elegant when you are unsure. we have meetings of the international monetary fund. this comes off our conversation yesterday with christian lagarde. today we will further that conversation. the peterson group is doing the best research. we have got a lot more guests on what is going in washington. those stormyat markets. the weather here is perfect. in the world of the nasdaq,

things are very difficult. >> one eye on the markets. thank very much tom., will be back in 27 minutes. results will be released at 7:00 a.m. new york time. let's talk to media banking analyst. he joins us on the phone. jamie diamond has been talking about it being a tough year. is that going to affect the numbers today? >> it will be yes. while there are some blind spots a jpmorgan, the big focus be on the fact that it is extremely tough. be question ofo how much weaker those were.

how much that is offset by bank performance inequities. you. is good to see i think it is going to be a long drawnout saga. after the final mexichem money-laundering said the charges will not be one off the next two years. we have still got that. provisionsgan to the got cloudsit still of the foreign exchange hanging over it. >>, about capital as well. seeing capital standards been raised. how much further can they go? at my model for what

i am looking for. is about 9.5. that is about the minimum if you beingabout the bar systematically important. behink what it will concerned about is if the chairman of the fed talks about the introduction of the leverage ratio. he talked about them adding their own buffers. i think the capital creep will continue. the banks are going to find growth, where is that going to come from? about u.s. banks in away from some the other businesses. has an outstanding wealth management business. the lady who runs that has done

a fantastic job. , i think thatking is a good area for them. they are being hit by slow debt and mortgage. we know,t banking as there are so many headwinds around. not just fixed income news but the need to push back on costs. the need to continually deal with the changing regulatory landscape which seems to keep moving. >> thank you very much for joining us. >> we'll have more on the numbers as they come throughout the morning. we are still looking for a reason why the ceo left the company. gross says media coverage has been over the top. >> the past two months have been silly really. breaking news, gross gets mad once in a while.

i am not quite rob ford or lindsay lohan type of headlines. >> he also spoke about the recent developments opted introspection. something like this over the past two or three months causes .ne to re-examine your self the michael jackson man in the mirror in this particular case. are you the person you thought you were or are you the person others thought you were. >> what is your answer to that? >> for the most part i am the person i thought i was. say that in this environment and this new dci owes, itth our is important to be an inclusive type of a leader.

i like my hair. it is nice and thick as the article suggested. can it be changed? can it be a different style or trimmed at a certain level? of course it can. >> what would you change about yourself beside your hair? >> to try and temper it a little bit. at certainthat i raised my voice. is that a bad thing? not all of the time. quite frankly you don't get a perl unless you get some sand within the oyster. a little bit of sand, a little bit of noise, it is incumbent on a leader to promote that. not a lot. examining myself from that standpoint. >> maybe he could think about regrowing the mustachioed he used to have. let us move on.

and it opened in 1929, the alice hotel in jerusalem was the most luxurious in the middle east. as of yesterday, it has been restored and rebranded as the waldorf astoria's latest luxury hotel. we checked in. lavishedlace hotel luxury on the visiting the laments. things like phones, hot water, and elevators. costingwaldorf astoria $5,000 a night, guests can expect more. the finest italian furnishings, a magnificent atrium with drop-down windows, stunning chandeliers. >> how much of the cost? >> about $200,000 each. >> my favorite feature in this hotel has to be this, a tv embedded in your bathroom mirror.

what more could you want and be able to watch bloomberg tv well you're having a shave? >> sitting in a restaurant that was one -- once a stable, it was tougher than expected. >> the main challenge was to restore the original facade from 1929 while we were adding additional meeting rooms and the biggest ballroom in the area. of theous staircase palace hotel, we had to build the same way as it was before. >> it took six years and $150 million to rebuild the hotel. the taxome home to ministry. overcoming israel's byzantine planning laws took even longer. projectstarted this

years ago. i am very happy with the result. is on a very small site. it is a very good proximity to the city. is similar more or less to the waldorf astoria in new york. waldorf astoria should at least last a lot longer than the original hotel. a taking ap tom swing at wearable tech. to talknes joins us about gadgets that could improve your game. it is all about golf. that is next. ♪ >> will come back.

you're watching "the pulse." we are live from london on bloomberg television. it is the masters of this weekend. this is the most relaxing weekend. technology is going to disrupt the game of golf. the best golfers are gathering in a gusto. they are perfecting their swings. this tech description

and the golf course grade simon jones is a golf professional. he holds the world record for the most number of golf swings in 24 hours. and he would've follows golf or plays golf, they're becoming aware of the fact that tech is becoming a bigger part rooted you can analyze your swing. you can do all kinds of things to improve your game. these are some of the latest gadgets. let's start with this one. a launch monitor. it is a simulator. it will capture the data as you did the ball at the moment of impact. it will deliver back key pieces of data. it will simulate the data as well. >> you take your tablet to the range and it will give you a lot of information. >> you have bits of data on

screen. you've got clubface data. numbers, the actual simulator itself. that atffective is improving the game? i love the tech. is it going to improve my game? >> definitely. it fits you to the golf club. i best use this? i am going to buy this technology and take it down to the range and hit some balls. how do i then take that data? technology on my tablet good enough that i can self analyze that?

>> it gives you all the bits of , swing speed so you can measure the shots correctly. it will give you launch angles. it is key. anybody needs to know that. >> my swing is slightly off and i am cutting through the ball. would pick that up for me question mark >> yes. let's talk about some of the other things here as well. game golf the new device. it is brand-new on the market. it in theatching u.k.. got an actual clip onto your belt. individual tags for each club.

what you do is you simply tag that club in and measure that shot and it will map out the roundup for you and give you back every piece of data. accuracy, you can compare and share them with your friends and the best golfers in the world. >> they will know that i am claim on a certain golf course. >> they have many courses on gps. let's move on. this goes on my golf club. >> is a 3-d analyzer. model, anve you a avatar of your golf swing.

it is going to give you your ,wing speed, your club claimant which people think is not as important but it is. you need to make your hands are in place. it will give you all your key bits of data that you need. this is a great self analyzing tool. if you want to teach yourself, this is a great thing. it works very well. >> what i am waiting for is the golf ball that i can find. i lose a lot of golf balls. coreis is the latest inside of a golf ball. from a resinade that is lighter. it is more stable. it transfers the energy from your shot into the ball much more than a piece of rubber wood. >> amazing.

all of the stuff is amazing. elvis changing rapidly. what impact is this going to have on the game? >> it will bring amateur golf to a better place. they will be able to learn more , they will swing in be able to analyze it a lot more. they can keep up with the pros. >> that sounds like a great idea. thank you very much for coming to see us and bringing all this technology. is enough golf for one day. i think that is change or golfing life. photographer has created a wait to see the world from every angle. he rigged together six cameras to create the fishbowl shot. it is taken him years to perfect.

there is new craze kicking off on the world of extreme sports. this is called the team fighting championship ring and --. this is an organized brawl of mixed martial arts. screens in theng next few weeks. mugged on brazil was live tv while she was giving an interview about increasing crime on a lack of police officers on the street. chainief broke her gold necklace but did not manage to make off of it. the pulse when back in a few minutes. ♪

let's talk a little bit about the currency market. ra make seen the li progress. the market is returning back to buying anything with yield. that has, overnight. maybe that rally we have seen in the turkish lira is coming to an end in the short term. >> this is look at what we're watching for the rest of the day. you.tart with angela merkel is in athens today. >> she arrives in a couple of

hours. she is going to meet small business people. she is going to talk to some startups as well and get a hand of the start up situation in greece. she is going to have a news conference after meeting with them. i wonder what she might have in the suitcase. >> i think a lot of people like the answer to that question. that is a curious question. we are going from small business leaders in athens to big leaders in washington. >> thousands of government officials are descended upon washington. it is a big meeting for the imf and the world bank. some of their agenda may be the you -- ukraine situation. the finance minister in the ukraine says they're going to get $7 billion. >> first quarter adjusted earnings shares for banking in

the u.s.. it is up for the quarter and down for the year. >> that is it for the pulse. surveillance is up next. have a great need -- weekend. ♪ . .

>> this is "bloomberg surveillance." >> kathleen sebelius falls on her sword. the obama administration tries to move on from its obamacare disaster. there is a global flight to

quality as a stock market, particularly the nasdaq, to send -- descends. is it time for you to buy a golf course? good morning america one. this is "bloomberg surveillance." washingtonfrom our news borough this friday, april 11 was that joining me from our world headquarters in new york, scarlet fu and adam johnson. get a start with a friday morning brief. ofovernight, more signs slowing in china. produce prices fell, extending the decline. u.s., we get our prices at 8:30, then consumer confidence is that 9:55. earnings, jpmorgan at 7:00, then wells fargo at 8:00. also samsung galaxy s5 goes on sale and congress begins its easter recess. thank goodness, scarlet