>> the u.s. and russia clashes as violence escalates in ukraine. offthey're kicking emergency talks shortly. back in the race? peugeot flashes its market lineup. china tightens its grip on copper. tal snatches up a mine for nearly $6 billion. good morning to our viewers in europe, good evening to those in asia and a warm welcome to those

waking up in the united dates. i am guy johnson. francine lacqua as off today. this is "the pulse." we are live in london. we have a great show for you. what to we have? how not to pay taxes. you heard me. thel loopholes used by tolthy and the scrooged avoid paying those taxes. we're going to look at the world's largest cosmetic maker is a gears to post sales numbers later. let's start with the more serious situation in ukraine. arepe's foreign ministers holding talks to defuse the crisis. the u.s. and russia have been clashing at a security council meeting. violence escalates in eastern ukraine. david tweed has the story. hasukrainian president spelled out a deadline to lay down arms. that has passed.

what happens now? been expecting to see some sort of action from the ukraine special reserve forces butnst the separatists, there has not been any action so far. one of our reporters reported russian can hear the national anthem being played from one of the municipal buildings that he is observing at the moment. we heardof hours ago, from the interior ministry website, an announcement that the national guard reserves would be deployed in the area. and at thists squadron one aim to shop -- stop terrorists, localized separatism, and try to control the situation in the region. at the same time, there has been sergeyconference from

lavrov and he is saying that russia does not have any agents in theb ukraine and he is calling on the government not to take any action against those separatists. there's a bit of a standoff taking place at the moment. if the action does happen, it is a risk the troops are massed on the border of the ukraine. 40,000 troops, all combat ready to move into ukraine should they need to. only go to show how to cents -- how tense the situation is. they have two real challenges. first, they need to prove that the russians are involved in the actionsian separatists

that are taking place in eastern ukraine at the moment. is notsays that russia involved. that would make it difficult for the foreign to use that as any precedents to start sanction. the other thing is, within the foreign minister, there appears to be different views on whether they should be moving to the iran-style economic sanctions that some are calling for. there is resistance going into that. until we see russia making it an overt military moves into ukraine, we have not had that yet. >> david tweed, thank you very much indeed. the global finance chiefs are trying to egg nine growth in their economies. thetly how to do it was focus of the imf spring meetings. mario draghi used the opportunity to take his yard --

largest stance yet. ourt would require, to make -- it would require further monetary policy accommodation. it requires further monetary stimulus. >> let's talk more about this. jonathan ferro joins us. a bit of a slow burn, but we have seen a selloff in the euro. >> i asked if the market had become desensitized to mario draghi. in moved lower in the last hour or so. of move theyind wanted to see? did he want to drive the euro lower? we have seen that. we heard the exchange rate being referenced before. it is a drag on inflation. -- hed the a strange he

said the exchange rate is strong. it was pretty aggressive language on saturday. still higher than we were at the beginning of the month. it's not get overly excited here. how much further will we have to go before the ecb acts? it is talk. nice and easy to do talk. a lot harder to convince the council about further actions. >> if we look at the exchange rate in isolation, we need 150. ecb --lar 52 trigger $1.50 to trigger ecb action. they want to see it move back to target. it will take a number more than a few more months. >> what language do you think the french will be using at $1.50? >> i imagine it would be pretty

rude and i will not be able to say on air. $1.50 would absolutely kill him. >> he would not be happy. that is putting it politely. we will catch up a little bit later. inc. you very much, indeed. jonathan ferro, covering the markets. peugeot shares are under a little bit of pressure. more.ne hyde has investors unconvinced this morning? is that being polite? >> being polite. the new chief executive joins as a ceo since march. he is taking a leap out of his old employer's book. he is going very near-term with the new business strategy. it is all about fixing the cash and returning to profit. back in the races with the strategy is called.

2014 to 2018, a four-year window that he is focusing on. they have been reorganizing peugeot. net losses have racked up to 7.5 billion euros in the past years. sales plummeted for europe across the board, particularly afflicting -- affecting the likes of peugeot. it is all about getting back to selling cars and cutting your costs. >> selling those cars in asia. that is the big story. theirably china, with partner dongfeng. they aim to increase volumes by three times, 22020. interesting focus in russia and latin america. in russia, they are hoping to roll out a sales offensive. new models, but adapted to the russian market. they hope to start racking up sales there.

that in america, they are boosting investment. markets thatse are are set to grow. in particular, with the two key they will push forward the ds line and the c line. there, but it is about reining back on the amount of types of vehicles they make. they had 45 types of car and to 26 types ofack cars. shares are trading lower. improve your overall profitability and rain back on cost. back on costs. >> thank you very much.

what else are we watching? the search for the missing malaysian airline flight starts again. officials have announced the sighting of an oil slick close to the area. an underwater vehicle will be deployed shortly. they thing the black box's batteries may have run out. letbook is gearing up to users store money on a social network. users could a an exchange money with others. the social network is said to be weeks away from receiving the approval and ireland for the services. cuttingp is said to be as many as 300 jobs in its global markets division. it is trying to shrink costs. quarterease first earnings at 8:00 a.m., that is

1:00 in london. could russia be manufacturing another crimean situation? we will discuss the next. ♪

>> we can only have a strong europe if france is also strong economically. is interested in our

growth plans and if it will succeed in permitting france to achieve both growth and reduce the deficit. financewas france's new minister. he is a vowing to bring public finances in line. the big news for europe, when i came to the imf meeting was a conversation than mario draghi had with the market, talking about the fact that he needs to bring the euro down. did he have an effect first thing this morning? the answer to that is no. we have seen the euro coming under a little bit of pressure. have all of this the wrong way around. you back to dollar ruble and show you the gap higher. we are seeing the situation in eastern ukraine develop in the wrong direction. there is a gap.

you see the similar story when it comes to the stock markets. to that subject, let's talk more. the u.s. and russia traded blows at the u.n. last night. figure out what is happening and what lies ahead. she has been monitoring the situation. not many weekends of relaxation right now. let's talk about what is happening. the situation in ukraine seems to becoming a carbon copy of what we saw in crimea. or is it? >> the tactics would be similar. bilzation of the establishing control of the ground. a the part of russia, is tactic of destabilization rather

than invasion, crossing the borders with the troops. positioning aim is ahead of the talks on thursday. russia's going to demand federalization of ukraine. kieving that the key of -- government be put into position by the western support. >> should we look at the scale that we are operating here between diplomacy and all-out war? where are we, to the right hand side of that scale? >> we're getting to the right hand side of the scale. it is obvious that the efforts in the region's, where the organ that -- the unrest have occurred, they're organized and coordinated. the support of russia behind these efforts is not an disputable, but it is fairly likely. closer to the forceful

options rather than diplomacy at this point. >> what was the strategy in the u.n.? in this direction or is that saying we are playing by the rules? what was that? to hiss the effort edition themselves as the ones that are playing by the rules. russia has been sending out signals that this is essentially fast-forward. that ukraine has been destabilized by the west support of the protesters against yanukovych, late last year. international or domestic consumption? >> it is mostly domestic. it will make nice headlines in russian headlines and on tv. >> how low should our , on the talks on thursday?

>> they do not have high expectations on either side. it is quite unlikely they will bring a resolution of the crisis. remains government opposed to the federalization of ukraine. the federalization would be undesirable for ukraine, and this is one of the major aims of russia and the country. >> will we see the gas cutoff? >> not yet, but the threats have been put forward. that would be another bullet in the gun if you wish to say it that way. that would precipitate if we saw further western commitment to kiev government. >> it strikes me that european business, the links economically with russia, are having a big effect on europe's desire to get mixed up in any form, it seems,

when it comes to the situation. expecting wide, economic sanctions to be announced against russia today, you will probably be disappointed. at most, we're are going to get an escalation of the list of targeted sanctions, which is sort of a level two of the sanction regime. that would be because of the links of european countries with russia. also, before the talks, they're trying not to cancel the whole thing. financially, though, we know that we need to support ukraine financially. to what extent, if we were to see europe, the west putting up significant quantities of money, would that have an effect to mitigate some of the ing forces? and the west by its way out of this one? >> it will probably not resolve

the situation on the ground. provide the ukrainian government to help handle the situation, but kiev will have to resolve the problem on the ground by itself. there was a substantial involvement of the eu and the u.s. diplomats in advising what was the opposition when they were coming to power. one would hope they are continuing talks with them. essentially, it is the kiev government itself. >> does that go as far as boots on the ground? being accusedre of putting provocateurs in at the moment. there were some suggestion that the west was providing similar advisors. what is the likelihood of that? beene talks of that have on the ground. there are military stations that have probably bits and pieces of advice that they are handing to

the government. >> as we see ukraine putting , is muscle on the ground that coming from washington and berlin, london and paris, that they should be doing that, or is that something that is being generated domestically? >> it is being generated domestically, mostly. >> ok, thank you. let's move on. up next, the $6 billion for a copper mine could be a game changer for minmetals group. ♪

>> good morning. welcome back. you are watching "the pulse." corporate at our top stories this morning. the mega deal for glencore. minmetals is leading a group, paying more than 5.8 billion dollars for the asset. joining us now, jesse rise borough. both look at the deal from sides of the table. why am i disposing of -- it is a prime asset. they are required to talk to the chinese governments.

toy are a bit immune investing into new minds. for them, it is not a bad thing that they can sell this, and get a bit more cash in the books. >> how big a problem is the balance sheet? >> it is critical for them to address these issues. >> people or talk about five, this is near six. >> most people or thinking 5 billion. they are very bullish on the outlook and they need the supplies. that is about 10% of china's consumption. >> glencore's management, i would be nervous negotiating

with ivan. >> they have known each other for a long time. he commented at the time that he was a tough negotiator, but very fair, and a man of his word. in terms of the message that this is sending out, it sends out a clear message that the chinese are interested in resourcing. >> jesse, nice to see you. jesse riseborough. coming up, avoiding the tax man. the legal ways of the wealthy can reduce tax exposure, sometimes even 20. -- even to zero. you can follow the team on twitter. we will be talking about taxes. i am at@guyjohnsontv. that@flacqua.a is

♪

>> welcome back. you are watching "the pulse." we are live from european headquarters in london. francine lacqua is off today. these are the top headlines. france's new finance minister says the economy may -- to the projected. what i am trying to share is the core of our objective. theind the best way that

cheese growth while lowering the deficit. >> bubba watson has a new addition to his room -- to his wardrobe. second masters in augusta. he finished three strokes ahead johannesan spieth and blix. the un security council has held an emergency meeting. toy have called on kiev start a genuine dialogue, but there are increasing signs of russian involvement in the violence. >> we know who is behind this. the only people in the area capable of this is russia. >> lets him on the situation. let's go to moscow.

henry, we had lavrov speaking earlier. what did he have to say? >> he gave a robust defense of his country's position. he said russia is seeking a unified and friendly ukraine. he warned against the use of force by the ukrainian authorities. of confessionsign on the russian side. >> what is the situation in eastern ukraine this morning. , what iseen casualties the story now? >> there was the first bloodshed since the crisis began in eastern ukraine over the weekend. at least one serviceman was killed, possibly two. there was a deadline for the protesters that have been

, topying these holdings leave them. that deadline has passed. they are very worried. the situation is explosive and the concern is there will be further violence. >> expectations in advance of the sitdown in geneva. probably fairly low. how are the russians positioning themselves in advance of those talks? >> they are continuing to lay theyheir demands, which complained they are not being listened to. they want a federal structure for ukraine and a new constitution, which would enshrine the rights of the russian speakers. ukraine says this is a recipe for breaking up the country. the prospects are not very good for those talks. they have significantly -- gotten significantly worse since the violence over the weekend. the west has limited options. there is disagreement on whether

they should proceed farther and impose new sanctions. german businesses against it. it is hard to see how we're going to get out of the situation any time soon. >> thank you very much. the view from moscow. let's go to washington and go to new york. tom keene, back from washington, in new york. 25 minutes until surveillance. from theyou pick up meetings in d.c.? what are you hearing in new york about the situation in ukraine. question, away from the microphones, that authorities at the imf, the , particularly in washington, are far more concerned about these events than they are letting on. i was surprised at the minor play in the newspapers this morning. there is a distance between washington and ukraine.

this is a lot more serious. i do not know what to make about the four killed as reported by interfax. >> the reports now suggest four. you feel as this is forces repositioning ideas in advance of meeting so we have coming up. take to makeing to the markets more concerned about this? earnings are later on today. >> for your office, i would suggest jpmorgan's week earnings report was the catalyst for a lousy week. pick up with futures, negative five. , it isomberg terminal simple. it is more about earnings. currencying at the

dramatically weaker. the yields move lower this morning. >> i want talk about draghi and what he said at the meeting. did you get a sense that the u.s. authorities have signed off on this? that we have approval for him to take the euro lower? >> i had a wonderful with fouron on friday leaders of the european .ommunity there's a real dichotomy between what european authorities are lagarde is looking much more at the economic slowdown in europe than the potential slowdown this year.

the show. forward to tom keene taking over shortly with surveillance. update onntime, an what european markets are doing. >> the politics are beginning to play into the nerves of these equity markets. we are down a third day in a row. the story is beginning to make robustlynce much more felt across the market. to be the driver. you saw jpmorgan disappointed. the mortgage lending numbers in the united states of america have had a much more telling story. it down a quarter of one percent. you are looking at one of the worst weeks in the last few

years. we want to get back into the u.k.. one thing that comes through is the reflection of the nature of some of the stocks that are on the move. and was upwas up nearly 90% up in 2012. 68% -- barrett was up 68%. equity futures lower in the u.s.. the british pound coming a little lower. one of the themes i come back from the discussions with ubs as you will see a higher dollar. that will play into draghi's efforts to reinflate. >> manus cranny. coming up, cashing in on cosmetics.

beautyat l'oreal's playbook. that story when we come back. ♪

>> welcome back. you are watching "the pulse." this is a police station in the area. it used in see one of the emergency vehicles. we are told this is a shot of program russians up orders

storming the police station. we do not have the details exactly. part of what we are now seeing, the east of the region, this attempted destabilization. kiev says it is by pro-russian supporters by moscow. catherine ashton has been making comments. we are waiting for a foreign ministers' meeting in europe. we are waiting for another meeting to take place in europe. we are not expecting that to take place in brussels. she will meet officials next week. she is concerned by the situation you see in front of you right now. that as the more on story develops. to itll come back towards the end of the program. l'oreal is reporting sales today. been on a shopping spree

this year with the purchase of china's magic holdings. will it help boost to growth? for more, we are joined by caroline hyde. also, fabrice. caroline, let me start with you. l'oreal thinks it is worth it. >> it is very dna. brand they how much own. 27, they bought. shop, this isdy driven forward, the brand in general, making it the biggest cosmetics player in the entire world. it seems to be on one emerging-market. particularly with snail cream. snails are a hot topic.

luxury products, shiseido is another deal they have done this year. mass market is where the bulk of their revenue comes from, but the faster paced growth tends to be the luxury area. >> the french are good at being aggregators. very similarh, a story. is it very similar, though? .t does not have to do that as l'oreal have to do what it is doing? operandi. modus and china, it is relevant. shiseido is smaller than l'oreal, so for l'oreal to go

and buy existing brands, it is important for that market, where their own brand has not been as successful as they would expect it to be. >> why are they not being successful? they are still keeping maybelline. is the chinese buyer -- do they not like brands they do not know ? do they want something like a magic, which is home grown? to the chinese buyer, it is probably the opposite. they know what is happening in there doing a lot of research on the brands. they have a great appetite for brands. garnier asdo not see a relative brand. brands transfer quite well and to china. the chinese have been big buyers of european cognac, leather goods, everything you can think

about. why are cosmetics different? >> they are different in terms of the product. on your skin,put a lot of formulation needs to change, packaging needs to change. there may be issues with product themselves. i also think, particularly in china, we see that the market has a great appetite. they are educating themselves. if they see value in a brand or the brand is delivering on quality and status, then they will buy it. maybe they do not see these values in garnier as much as european markets do. >> l'oreal has shown they can take a brand and grow it. does a l'oreal realize that once you put the force of its

marketing team behind it and the resources that it has, it can drive the brand forward? >> they know how to do it extremely well. if you look at the resultant china, this is not so shiny. maybe it is their approach to the market that has to be different. maybe they have to take china a bit more seriously, like shiseido does. growing a few of their own brands, that is what she shade oh is doing. their ownying to grow brands. perhaps that is the better approach. the more respectful way of growing into that market. --?an i compare it with is there a reverse story here? do we see brands coming out of china?

you can take brands out of china and played on the global stage. >> that has happened. if you go back or he or 40 as thewhere we saw japan maker of cheap, dodgy products, the measure has changed and they have taken over many sectors of industry. growing in cosmetics. it is possible that we will see strong brands emerging from china and going into our western markets. >> the snails are coming. >> the snails are coming, and they are good with garlic. final point, if you are looking around the world and seeing the greatest opportunity for all of this, this arrest in asia? cosmetics? african where is the greatest hunting ground? >> it is still china.

maybe brazil, the u.s. starts to revive as well. it is a big numbers game. devil-locks,s been it will be hard to find the same level. wicks similar to the drinks. we are back in two couple of minutes. ♪

>> welcome back. you are watching "the pulse." if you are a finance minister, doubly better to turn off now. the a little planning, wealthy and perhaps the shrewd, can reduce their tax to zero. the best part of it is that all of this is legal. brendan greeley explains how to give the tax man the slip. >> did you pay your taxes this year? if you did, you are a sucker. here are three clever and completely legal ways to give the tax man the slip. the options option. hisxecutive negotiating

employment contract for next year. options. take gains from nonqualified stock options are taxed until the holder exercises them. that means the executive controls when and whether the tax bill comes. it is not just icing. often, it is the cake. of oracle earned one dollar in salary and was awarded money and options. the estate tax eliminate or. they want to avoid the estate tax on earnings. who doesn't? step one, the parent steps up a grant to retain a renew a trust. step three, profit. whatever return the money earns in excess of interest remains in

the trust. it gets passed on to the heirs. the no sale sale. an executive has $200 million of executive shares. cash, but you don't want to pay the taxes for selling. they borrow about 200 200 million dollars from an investment bank and uses the shares as collateral. of theze the value collateral shales, he buys and -- options,ns, granting him the ability to buy or sell the shares later. the tax bill comes in years after the initial borrowing and his money has been working for him the whole time. nice problems to have. let's talk about the currency markets. what has been happening this morning. the ruble, unsurprising. the markets are feeling a little

cautious. the dollar gets higher this morning. we are up by 1.23%. stock market is doing similar things as well. it will be an interesting week for russian assets. david tweed is in berlin, covering the cosmetics story we want to know about, caroline hine. jonathan ferro's in the studio. david, let's start with you. eu foreign ministers are meeting today. what chance do they have of defusing the situation? see iffirst thing is to we see retaliation from the ukraine forces against the pro-russian forces. announced thate they have halted arms licenses to russia. the foreign ministers meeting is getting off the ground now. the prime minister of ireland is

saying that the eu is looking at states three sanctions. the sanctions being economic, financial. those of the ones to watch out for. david, thank you very much, indeed. over.ils taking l'oreal has been buying chinese brands such as magic holding, with a little bit of snail cream. sales, anting increase. is about themance luxury product area. they have contributed about a quarter of their sales. earnings areter out and no one is talking about their earnings. everyone is talking about the 200ntial that it might cost to 300 jobs. it comes from the markets division. this is where a lot of the money has been made on wall street. that could be quite --.

>> we will leave it there. that is it for "the pulse." leave it right here on bloomberg television. "surveillance" is up next, from new york. ♪

>> this is bloomberg "surveillance." >> gunfire and definite eastern ukraine. -- united states ambassador calls russian forces

coordinated. at 8:00 thisorts morning. they will ask 300 jobs. -- ax 300 jobs. adam johnson moving to the cayman islands. tax day is upon us. we are live from bloomberg world headquarters in new york. joining me is adam johnson and alix steel. scarlet fu at home doing her taxes. getting us started with a ukrainian mormon -- morning break. what happened overnight. mario draghi said the strengthening of the exchange rate requires further monetary stimulus. and of the words come getting too expensive. -- yetongest stance yes since they began complaining. >> one of the highpo