>> touching down in geneva. in easternts meeting ukraine as new threats of sanctions continue. heading for its trading debut in new york. mind the gap. janet yellen points to how short the fed is to its goals of full employment and price stability. hello. welcome to "countdown."

thursday morning. standing byporters ready to deliver the stories to drive your day. david tweed is in berlin ahead ukraineeeting on the crisis. jonathan ferro getting social and the first day of trade. caroline hyde with the details on google as latest sales revealed that fact in its shift to mobile. mcginty views on bloomberg this morning. sap earnings with chief bigcutive bill mcdermott -- interviews in bloomberg this morning. maurice levy from publicis. wu tang's producer joining "the one singlewhy even

copy is up for sale. we will get the latest insight into the results with co-ceo bill mcdermott live from germany. nothing from sap as of yet. top that the blacks from ukraine diplomats -- top meeting. u.s. and european union are getting ready for new sanctions. is there a chance for diplomacy o work here? >> john kerry has already arrived in geneva. is russia serious yard go do they want to go ahead or will

they just continue to try to do stabilize east ukraine for their ? n purposes they are unable to run or govern all of russia and we saw that with the failure of ukraine troops to actually take eastern ukraine. guarantees for russian gas going into ukraine and also through to the rest of europe. russia will also want to see that ukraine has a nonaligned status. they will never be able to meet the european union and certainly never become part of nato. was a discussion of a new ukraine constitution, something that all parties will probably be able to consider but certainly not consider the

russian demands that any independent or autonomous regions and ukraine should be able to secede to russia. that will be off the table, mark. >> where are we on the subject of sanctions? >> the u.s. and the eu are preparing further sanctions that otherhit finance, energy, areas of interest to russia. president barack obama made it pretty clear last night when he was talking that every time russia continues to destabilize ukraine that there will be consequences. >> what you have already seen as the russian economy weaker, capital fleeing out of russia. are notn's decisions just bad for ukraine but over the long term, bad for russia. side the european union with regards to sanctions, the european commission sent 28 different european union

on exactly reports how sanctions were likely to impact their own economy. that's where we are on sanctions if the talks fail or show that they cannot become the beginning of some further diplomatic effort to try and solve this crisis. >> european editor david tweed there in berlin. chinese twitter rival weibel on the nasdaq today set to price it at the low end of the range giving a valuation of three point $5 billion. jonathan ferro is here with the details. welcome back. a time to go public as a tech company over in the united states. they filed for the ipo and you saw what happened to their peers. linkedin, twitter, facebook all taking a beating. as has been nasdaq itself.

it surprisingly had a range of $20.o it's not a surprise that one is up the bottom of the range and the talk expect them we had with twitter at least. >> it is called china's offer to twitter. are there similarities? >> up we look at users, twitter has 240 million. i know everybody loves this particular metric, revenue per user. 76 cents for twitter and $1.46 for weibo. the company makes no money and has not been profitable for the last three years. got to say that the problem but there is a wasted opportunity. it's not abnormal for making no money but it's about growth and opportunity going forward.

i've never heard of the singer in china. compare him to the likes of katie. , he has 72 million following him. katie. has 52 million on twitter. it's absolutely amazing and that's an opportunity right there. we don't know who that guy is here in europe, perhaps in u.s. and if you want to target this captive, unique audience in china, here is your opportunity. here's the problem. to operate in china and a way that twitter and facebook they have too not, comply with censorship rules giving them the opportunity to operate in china. this limits user base growth out of china. you have to say yes and that will limit them going forward. you.nathan ferro, thank we will bring you more on this ipo in an interview with charles don'tt 6:00 p.m. london,

miss it. the shift to mobile is proving to be a challenge for google with shares falling 6% in its latest missed projections for sales. here with more, european business correspondent, caroline hyde. some of the trends are worrying investors. isfollowing after hours and the third biggest company in the world, google. we have seen it with the likes of facebook. they're struggling to monetize mobile. google has already been on the trends knowing we were moving towards cell phones. larry page is upping the amount of adverts. downrice they charge is nine percent because companies don't want to spend as much for a very small promotion on your phone. on a desktop you can have far bigger, more flamboyant advertisements. they are getting the last four each of mobile dollar.

>> tell us how it is broadening out from its core search business. you're looking at tech companies, you can look at bottom line and profitability, but most people want to see sales, growth opportunities. they have $60 billion of cash and they are looking to expand outside internet search engines. advertising is coming at a slightly lesser price but look at the forays they are making into robotics, cars, drowns even. they are pushing into hardware. up 23% buts risen they're really funneling money into google play, the equivalent of the app store for apple. they're spending money on developers there and acquisitions. as a big one, nest labs. that is getting google in the home and connecting your thermostat, your smoke alarm,

connecting google to your home. also they're looking at robotics. solar powered satellites about connecting people who might not have access to internet in very rural areas. investors aremuch worried at the moment. revenue is dwindling. achieve you one fact. they're sounding optimistic. the chief is ms. officer says that eventually mobile adverts will cost more than desk top. you have so much more information about us when we are on mobile. they can see where we are and who we are interact it with. >> the search for survivors off the coast of south korea enters its second day. at least nine people are dead and that number is likely to rise. let's get the latest from mia saini in hong kong. good morning. give us the latest. dead, 200 87 missing.

there were 470 five passengers on board. no survivors have been found today. chances of more rescue looks like it will just be diminishing due to the fact that there is a cold see in the temperature is very low. the coast guard is still hopeful that some passengers may still be alive if there is enough air in the ship. you are currently looking at live pictures. over 550 divers are searching for the faerie. strong currents, low visibility, making operations difficult. you can see the search crew on land. the accident happened off the schedule to route to a popular tourist destination island. it sank just three hours from the island. you can see the map on your screen. investigators are looking into what caused the sinking including the possibility of

hitting a rock underwater or perhaps having an explosion inside. >> what about the families? >> the families are not too far from the site you are seeing now. these are live pictures on the screen, hundreds of parents whose children to remain unaccounted for also packed into a gymnasium near the side of the sinking ship. a southn threw water at korean prime minister who arrived recently. the government is making all available resources there so they can find these passengers. the bow was currently visible from the waters, mark. >> mia saini in hong kong. fans will not want to miss today's in the know said and as the amazing spiderman two hits cinema.

up next, janet yellen and signs of inflation. she does not see any so far. we will discuss her comments next. ♪

today's company

news. the biggest container shipping agreement toding take over most of the chilean rival assets. this will make them the fourth biggest container shipping company in the world and that -- annual revenue of $12 billion. ibm first quarter revenue fell almost four percent from a year earlier. they must estimate sending shares down in after-hours trading. sales continued to tumble in the hardware unit in developing countries. with clashes over the company. this allows the ceo to continue in his rule of upgrading networks and selling non-core assets. welcome back. this is "countdown." anna is away this week. janet yellen's pledge to continue to support the u.s. economy sending the pound in

opposite directions and we are joined by asset management global market strategist david lieberman. good morning. always good to see you. what yellen essentially said is what matters is how short the fed is of its goals of full employment and price stability. she pretty much gave the answer away. she said they are about two years from those goals. what are the implications of that? >> when yellen is asked questions about the direction of fed policy, she is trying to be a little more transparent. it's impossible to put an exact timeline on a how long this will take but in interest-rate rises not imminent. they will continue along the path of tapering but will not do anything unexpected. business as usual and effort to reassure markets that they will not be removing liquidity. >> our markets now more confident that rates will not go up six months after the tapering

process ends which was what she said after the fed meeting? >> her comments need to be taken with a grain of salt. she may have been caught off guard and made the six-month comment. she meant when they see it, and it's appropriate, that is when they will raise interest rates. improving and is the winter lull seems to be passing. looking at the data released this week, capacity utilization and the economy is firing on all cylinders. >> what do you think? when will tapering and? -- end? when will the first interest rate hike come? it will take something

significant to derail them from the current pace of tapering and they will start to raise interest rates. i'm not sure they want to pull the carpet under the economy. >> i had somebody say to me the other day that i will take a small explosion to derail the fed from the current path and i think that's a pretty accurate assessment. >> what does that mean for the dollar? it fell making us believe that investors may be pushing back their forecast for the first fed rate hike. what do you think? >> at the combination of that inflation numbers. they are seemingly going in slightly different directions. it looks like the risk is to the upside. they raise interest rates before the said whereas they said they will remain accommodative and that should result in a stronger pound and a weaker dollar. lexi was significant when it

comes to u.k. data. came fromeal wages this way rather than that way. >> it's important to keep in mind that one data point does not constitute a trend. that being said, wage growth is necessary. putting more money in the pockets of consumers gets them back out on high street spending and in developed economies like the u.k. -- >> they are not dipping into their savings. as the recovery becoming more balanced here in the u.k. ? >> stronger economic growth should lead interest rates higher. they can rely on more traditional ways of saving because yields are more attractive giving them a little more security about what yields ahead. >> weevil chat to you more next. issue. big russia, u.s., e.u.

lots to talk about with david leibowitz. ♪ stay with us. ♪

>> welcome back. this is "countdown." i'm mark barton. david leibovitz is here with me. russia, u.s., eu meeting in russia. our investors pricing in the

worst-case scenario, best case scenario, do the goalpost have to be moved? constantlypost are moving but the one thing that i have noticed at least is that investors seem to be becoming more comfortable with the fact that this will be a relatively drawnout process. there is no quick fix to any situation like this and unfortunately it just may be slowlyquo as things grind out and resolutions are smoothly reached. emerging-market riskier stocks have rebounded from the february low if you look at the msci emerging markets index up and year to date it is pretty much flat. january, emerging markets were falling. what happens from this point? developed versus emerging? >> it's almost time to get into

emerging markets. to me, it feels like there's a little bit of uncertainty, a little bit of risk. if you have a shorter time horizon, you may went to sit tight for the time being because there is some uncertainty. turning to developed markets, things continue to get better. the pace may be slowing but can only grow at double-digit rates becomesong before it impossible. continued economic growth should be supportive of earnings and push equity markets higher. but not asgdp fell bad as many had anticipated. is this a managed slowdown or secular? extent, it is managed. the thinking about chana -- >> to an extent, it is managed. thinking about china, now they are trying to manage the risk. on the other hand, they are trying to turn to more stable

types of growth. typically, consumption-led growth is more stable. we are seeing a managed transition whereby they should be looking at the quality and composition of the growth rather than the absolute number because it is not necessarily a bad thing. >> what about the applications for the rest of the world? >> it has been an engine of global growth over the past few years. that being said, as it transitions from emerging to developed and growth slows, it will be passed to others. >> can europe and the u.s. pick up the baton? >> it's also about places like taiwan and indonesia, some of the southeast asian emerging markets were they have not necessarily seen the same amount of development as china and now it's time for them to lead with respect to the growth while china continues to be the elephant in the room. david leibovitz,

thank you. clanhip-hop group wu tang is planning on selling just one copy of their next album. whether music can still make money. ♪

>> welcome back. i'm mark barton. let's go straight to jonathan ferro. >> this is a weaker dollar down against most of the majors. pastor hitting hitting a four year high. janet yellen in a devilish mood. who would have thought? the fed has a mandate. we are not hitting it and that's keeping a potential dollar rally in check. up another 2/10 of a one percent this morning. mario draghi said because of this we might need more

stimulus. still unable to drive this one much lower. the french ministry minister calling for an eu meeting on the euro. picture that. this one right here becoming more and more politicized by the day. bloomberg tophe headlines today. emergency services continuing to search for nearly 300 people missing after a ferry sank off the coast of south korea killing nine. on hundred 79 have been rescued in most of the passengers were high school students on a field trip. u.s. secretary of state john kerry has arrived in geneva for crisis meetings with russia, ukraine, and the eu. the diplomats are meeting for clashest time since erupted in eastern ukraine. president obama says they will face increasing economic penalties unless vladimir putin supporting separatist

militias inside ukraine. janet yellen looking at wages for sign of inflation repression. pay gains continue to proceed that historically lipases giving the first major monetary policy framework speech yesterday. by responding to changing circumstances, policy can be most devout reducing uncertainty about the course of inflation and unemployment. some sales figures to form thes biggest company. showing a fragile recovery and demand improving in certain markets. read the new 1.6 billion euros compared to the $1.61 billion estimate from the analyst we surveyed, slightly below estimates but stripping out the

effect of currency fluctuation, sales and dance by 6.8%. in china are sales picking up. it contracted late last year. there was growth in spain, italy , for the first time since 2011. the company confirming the growth targets of more than 4% for the year but they are cautioning the second quarter will not be as strong because of high comparables from the year prior. first-quarter sales up by 2% in europe showing a fragile recovery demand improving in emerging markets. watch out for shares later and watch out for our interview with ceo maurice levy joining francine on the move. the earnings do not stop there. we have figures now from the french premium liquor giant, cointreau.--

>> coming in below estimates and organic sales falling by nearly 11%. the market was estimating just under 10% drop. it doubled digit drop in organic sales looking for a decline of 9.7%. remy cointreua brandy, dropping 12 point eight percent. a three-way meson three of the big benchmarks. >> how much of that is down to china? that most ofaying this movement is down to china. that is where they are seeing the anticorruption movement. what they are saying is that they see the full year, the 35%ance the fall between

and 40%. to give you a sense, 50% of remy's profitability comes from china. they have been adversely affected by the chinese anticorruption extravagance policy. a negative impact on consumption premium risk. once you have stopped consuming high-end premium spirits, will the chinese return? that's the critical issue. they were warned in january but k of whether the brea trend and consumption. a strong performance, up over 7.7%. russia, japan, and africa are reporting strong growth. nowhere near as important as the

chinese business. a miss on the top line numbers and guidance that says profitability operating profit will fall. >> and it cited the prior forecast for significant double-digit fall. you wonder if it were the prior forecast. >> it looks to be worst. >> that is a profit warning. >> if you want to wrap it up that way. fourth-quarter revenue, taking the first quarter of the living year including the chinese new year and we saw revenue significantly missing their coming in at 186 million down from 229 million. louis vuitton sought down and i read an interesting note from sanford bernstein. they said, look, there's been a huge movement i the government to close down what they called the erotic sector or high and karaoke bars. can you tell me the difference between high end and low?

i said i could show them a broad range. you have visited many in your day. >> their range from fairly well and to fairly high-end. [laughter] survive." [laughter] >> it had to be gloria gaynor. >> a bit of pet shop boys. >> i like that song. off track.etting >> you are taking me off track. i was staying very focused on high-end karaoke. come back to me. sanfordtion is bernstein saying there will be no recovery in the cognac market until they get through 2015. day for manas.y

what are the challenges? what are the challenges right now for the alcoholic drink industry? >> we just talked about china treau.my coin the chinese spirits market is to thebout $70 billion booze companies. that's over 40%. that's the challenge. you have a currency risk in asia-pacific. you have changing societal issues. is if you areues the hunter or the hunted. the hunted. >> potential. we need to be careful with this. he might look across the numbers. now they are warning again and again and one can say perhaps it offers residual value. we know they raise their bid.

bloomberg industries wrote a lovely piece. if this deal goes through, it will take 2014 into the year, the busiest da year for booze making. >> that's a multibillion-dollar deal. have this deal with united. it's a question of trying to grab. are their value assets that the booze companies are prepared to pay for? >> i spoke to campari ceo. they have made smaller deals in the last month. he said it is a very fragmented industry and there will be further deals. >> there are huge pieces that can fit into your business. and the united states will play a critical role. will the united states

outweigh what is happening in emerging markets? >> the u.s. is critically important. there is a wonderful line that the one thing that could not work in united states of america is vodka. banca could drag the u.s. down. >> smirnov is the third biggest selling spirit. they own smirnov. what's happening in the u.s. and the campari ceo said it's all about the brown stuff, the whiskeys, the bourbons. >> that is what is becoming more popular in united states of america. with those of brands comes the premium is a nation as well. we are seeing it in the booze industry. agio they have the guinness brand that sells very well. you are looking at a tough consumer.

in latin america, venezuela. i love venezuela. to strip the venezuela numbers out when they come. reading through some of the comments from the market analysts, you have sandberg -- sanford bernstein and they say probably more so on the beer side and valuations seem to have bottomed and people are looking through the emerging-market foreign-exchange saying traps the worst of that cycle has passed according to janet yellen. i'm calling it the yellen express. is he terms, easy street. up the equity markets go and of course, it is a reprieve and a model for the emerging-market central bankers to say good old janet is on our side. >> low interest rates were a little bit longer. we are done with the booze. when it comes to alcohol, the most famous rand does not necessarily mean the messed --

best sales. we took a look at the world's top-selling spirits. is bige drinks business business. the industry is now worth more than $1.4 trillion. some of the biggest sellers mesa cries you. these are the top three according to drinks international. one you will have heard of, smirnov. it is sold almost 230 4 million liters according to the 2013 report. , this oneowell's comes from the philippines. sold 279 million liters but the biggest seller is perhaps one of the most specific . it is seen here performing gan a nam style. soju madebrand of from rice. despite it being a regional player, two and a half times the amount was sold of smirnov.

>> coming up, the biggest selling season, easter. how the company prepares for its favorite holiday. ♪

>> time>> for today's company news. raised 270id to have $6 million in its u.s. ipo after pricing shares at the low end of the market range. joined seven other chinese internet companies planning to go public in the u.s. this year. apple will unveil a song discovery featuring the update of the ios mobile software. they are partnering with london-based shazam entertainment to identify music by matching sound from a phone against a song database. shazam has more than 90 million monthly users and they have been weighing an initial public offering. first quarter trailing analyst estimates and the german technology company spending more on online cloud computing

services. profit climbed 2% and we will get the best insight into the figures with co-ceo bill mcdermott live from germany and just under half an hours time. welcome back. this is "countdown." 6:47 a.m. in london. withoutt easter the cream egg involved. what exactly does it take to make the gooey delight at cadbury? bloomberg found out. >> easter is an incredibly exciting time. important timey for us because it is one of the biggest selling seasons. we need to get easter right. we make 47 million easter eggs. 30% of theund chocolate market. at easter, we have about 50%.

cadburyseller is the creme-filled egg. we make 1.2 million every single day. milk chocolate fondant toand yellow replicate what an egg looks like. we slam the two together and we close it like you close a book. like most chocolate manufacturing, most things are automated. it could've been made in the last few weeks or months as well. are in easter 2014. easter 2015 is probably put to bed in terms of planning and we are now working on easter 2016.

a lot of people think it's on sale all year round. it is. a little radio spring sunshine in the dark days of winter. sunshine.e ray of an all the news on wu tang cl releasing one album. how much will it sell for? ♪

>> welcome back. i'm mark barton. clan are trying a their newss model for album selling just one copy. they printed a single unit and plan to sell for a multimillion dollar figure. is this a new business model, publicity sjtunt? i'm joined by justin. good to have you back. revolutionary? >> there is some background here. changedc industry has from a physical business to a digital business. cassettes, cds, and what itunes and innovation around digital digital products, you have mp3s.

artists and labels have made less money as a result of that. clan are being very innovative. they are saying the music is not a commodity but an art form. supply and demand and we can get money for it as if it's art. >> it will sit in this engraved silver in the box. tour to museums where they will have to pay $35 or $40 to listen to a bit. will bely you auctioned. this is a band whose heyday was back in the 1990's. >> again, it is supply and demand. >> is there demand for this? if jay z,s coldplay,

beyonce. 2007.last album was community,ip-hop they are royalty. they are influencers. they have been offered between $2 million and $5 million so there will be a buyer. >> will the buyer have control of the rights? can they sell it off or give it away for free across music platforms? >> i'm not sure the specifics of the deal. of options here. you could see an individual buyer, a brand that may want to get involved in some capacity. they are smart businessmen and they understand they can probably make more money by doing this.

than getting an advance of a record label. to $500,000.ser >> it's hard to say the specifics. >> what's next? yonce released an album on itunes exclusively for one week had some pay $5 million for rights to his album. where does this go? what's the next level of publicity, justin? artists and labels are having to differentiate themselves in a crowded music space am a crowded landscape. you will continue to see stunts and brands that get involved. will continue to look for new and innovative ways to sell their products. it's a digital product they are selling so they have to look for innovative ways to add value beyond the. >> how is just go going?

>> we are raising capital. >> is it easy to raise capital in this environment? west.are going we are going to los angeles. >> why aren't you raising capital here? why do you need to get their? -- go there? inentertainment industry is los angeles and there's a lot of people in california who have done similar deals. was on the show i spoke of it. european investors don't have the same type of risk tolerance or knowledge in the demand we are in. >> what will you do with the money that you raise? employees,y hire improve the product, scalable platform. that's what we're focused on. >> tell us when you have raised it and come back to chat. just iin golshir.

technologyiggest company, sap, missing estimates today. we will have more. co-ceo bill mcdermott joins us in just 15 minutes time. stay with us. ♪

>> top diplomats meet today for the first time since clashes erupted in eastern ukraine as new threats of sanctions continue. microblogging service heads for its trading debut in new york. germany's biggest technology company misses estimates for both earnings and sales. eo will be joining me in the next few minutes. countdown.k to a very good morning to you.

it is 7:00 in london this thursday morning. bloomberg reporters are standing by across the world. david tweed is in berlin today i had of the -- ahead of the meeting about the ukraine crisis. caroline hyde has details on google as its latest sales reveal setbacks in it shift to mobile. earningsssess sap's with its co-ceo. maurice levy joins us. clan tries out a new business model. top diplomats from ukraine and russia meet today for the first time since clashes erupted in ukraine.

eu are preparing sanctions. david tweed is in berlin. is there a chance at diplomacy will work today? >> there is a chance to diplomacy can work him about it will be overshadowed by what is going on in east ukraine. we just heard from the unit -- the interior and -- interior minister that three pro-russian fighters have been killed this morning. information upt on his facebook page. this will support the russian argument that the government in kiev is unable to govern all of ukraine. that is something the russians have been pushing constantly. john kerry, who was already in geneva, will want to establish whether the russians are serious

about having any diplomatic solution to this situation in east ukraine or whether they will continue to destabilize the situation. there are a number of issues on the table. one of them is going to be looking for guaranteed gas prices. the gas going through ukraine into the rest of europe. the second thing on the table is the status of ukraine. russia wants to make sure that ukraine remains nonaligned. things on the table today is the discussion of the new constitution for ukraine. that is something all of the parties are probably willing to discuss, but they are certainly not going to agree to russian anyest or demand that

region that does become autonomous can vote to secede. there are areas where they can talk about. >> what is the situation when it comes to sanctions? and theuropean union united states are discussed the fictions. barack obama was speaking on -- discussed sanctions. barack obama was speaking on television last night. >> what you have already seen this the russian economy weaker, capital fleeing out of russia. his decisions are not just bad for ukraine. over the long term, they will be bad for russia. >> or are some concerns the european union are not going to be able to agree on further sanctions, but the united states could go it alone and target the financial system. loads --d target make

bank loans, credit cards. it could lock russia out of global financial markets. it might come down to the united states acting unilaterally. that is something we will see only if these talks fail. there is an assumption there is no chance for diplomacy. let's hope that is not the case. >> we are getting sales figures from the world's biggest distiller. miss in terms of the quarterly numbers and in terms of the sales. it declined by 1.3%. rise.ts were expecting a that shows you the crunch the came in this first calendar quarter. if you look at the overall trend you are a to give

reflection of what is going on, sales rising by 3/10 of one percent. the market was estimating a rise of two percent. current trends will impact the full year. >> the biggest trend is the emerging market. >> asia-pacific and southeast asia, further negative impact from instability in thailand will impact them. america is a very important market for them as well. currency volatility negatively impacting operations. trend will impact the topline growth. in north america, trends remain unchanged. it is about getting the right product, really boosting sales in north america. unchanged from the first half.

net sales up 1.2%. a strong third quarter last year. western europe continues to drive incremental improvements. the topline takeaway on this is it is a mess. -- a miss. jumpingean car sales 10% in march. that is the seventh consecutive monthly gain. newmont of to replace aging vehicles. -- new models to replace aging vehicles. first-quarter sales rose 8.1%. rising as consumer confidence in europe strengthens

. the sovereign debt crisis in spain, portugal. sales rose 29% in march, 11%, a 8.4% inolkswagen -- volkswagen. corporate and consumer confidence has started improving and it is now visible. the seventh consecutive monthly gain pushing european car sales up by 10% in march. chinese twitter rival trades for the first time on the nasdaq today. they have priced shares at the low wind of the range. -- low end of the range. some would say it is a brave company. >> tech stocks in the u.s. have taken a beating over the last

couple of months. who would have thought you would have a listing right now? you cannot plan for this type of thing. it did not look so bad at that point. linkedin, facebook, twitter are taking a hammering. is it a surprise that this is going to be priced at the bottom of the range? expectations for a pop are not that high. twitter.the chinese are there similarities? >> it is a microblog. if you look at the comparatives, they lag behind twitter. this revenue like per user metric and they lag behind twitter there as well. profit, there are not any in there have not been for three years. what is interesting here is the potential for growth and the fact that they are in china.

>> twitter has not made money either. >> their presence in china is a blessing and a curse. >> who is the singer i have never heard of? >> singer, actor, but he has 72 o.llion followers on weib opportunity, it is manifested in those numbers. at capturing look that market. this is a blessing and a curse. the busing is the fact that they are there and the curse is they have to go by the censors at laws from the chinese government -- censorship laws from the chinese government. twitter is much more liberal.

it will limit their potential user growth over the next couple of years outside of china. if i can get anyone near that guy, i will be a happy man. >> spiderman 2 hits the theaters today. we will review the big box office hits based on comic books. we will assess sap earnings with co-ceo bill mcdermott. that is next. ♪

>> welcome back. the shift to mobile is proving to be a bit of a challenge for google. shares fell six percent. here with more is our european business correspondent caroline high -- caroline hyde. >> the third biggest company in the world. >> dismissed -- the shift to mobile is not a smooth one. they are struggling to

monetize. why? the main amount of revenue is advertising. advertising is cheaper on smartphones. isn though larry page ramping up the amount of adverts price hee to sell, the can charge for them is going down by nine percent. belowe came in slightly what people have been estimating. stock declined six percent after hours because of this concern that they are not growing at the pace they used to. the chief business officer says, eventually, mobile adverts will be priced higher than desktop adverts because you can it's so much more information.

-- because you can get so much more information. eventually, they should be able to sell them for more value. area worthanother noting. >> the question is, when will these investments, when will it isa acquisitions -- the most, the biggest dealmaker out there in the world. when will they start reaping the profits? will they really drive up earnings per share? questionable. we know that google has google campus a stone's throw from our office. they are betting on smaller companies investing, helping these companies will thrive. --e of the companies that they have just made an acquisition.

drones.wered where does that play into google's overall revenue stream? >> especially those that do not have access to the internet. >> they are betting on robots and technology in the home. they splashed out $3 billion on next lab. this is a fascinating piece of hardware that you put in your home. putting their bet on getting interactivity in the home. they already have chrome cast. it is like a netflix, and apple tv. interesting bets on hardware. >> it is best to do something none miss out.

is making a bet on weibel begin in a different interactive world -- is making a bet that we will be in a different interactive world. --king around an alternative doing our shopping that way. the question is when will we start seeing the revenue and the possibility? amid the selloff, we are seeing a bit more sensitivity. this is why the shares have plummeted six percent. juggernaut. >> european auto sales rose for the second -- seventh consecutive month. details, next. ♪

>> germany's biggest container shipping line signed a binding agreement to take over most of chilean rival. the fourthll make it biggest container shipping company in the world with annual .evenues $12 billion ibm's first-quarter sales fell almost four percent. news sent shares down in after-hours trading. sales continued to tumble in the

hardware unit. shareholders have voted a new chairman. welcome back. tweed has been taken a look at those european car registration figures. seven consecutive months of increases. >> it is quite extraordinary. the european consumer really is feeling a lot better, certainly better than the european businessman. we had this german confidence survey for a role and it showed itecline -- for april in showed a decline for four straight months. it is concerning because it does not account for what is going on

in eastern europe rain -- eastern ukraine. ones -- up 20%. it seems to reflect the fact that some of the cheaper brands are the ones leading the gains. ford has done very well, 14%. we managed to catch up with a ford executive talking about the transformation they're trying to do in europe. but even in markets like germany, we are taking on some strong competitors, our share was up a point and we have added more production for our fiesta. we are doing well. in terms of countries, the u.k. is up 17.7%. >> david tweed, live from

berlin. biggest technology company reported earnings and sales that missed estimates. let's bring in bill mcdermott for more insight. thank you for joining us. >> good morning and thank you for having me. >> i have to start with the numbers, that is what we do. and earnings sales and software license sales. tothis part of your shift on-demand software, the transition that you are implementing. is this something a bit more serious? we did not miss on anything. grewuided 6-8% and we nine. we guided about 35% growth in the cloud and we grew 38%.

we achieved our operating goals on profit. is we haveng for sap declared that we will be the cloud company. -- enterpriseses can run their businesses in the cloud. could be a business executive and run your department on sap. -- of this is happening running them at much lower cost and higher productivity. we are helping customers grow. ask your software license sales, an indicator of future revenue, fell by 5.2%. what is going on? what are you doing to mitigate that? >> it grew by one percent and when you look at the negative five, you're adjusting for the currency.

i absolutely agree with, currency impacted our growth five percentage points this quarter. what i not doing is worrying about that. our core continues to grow. we are going to transition our business model to become the cloud company powered -- cloud company. our coreoing to see grow in study single digit kind of numbers and we will not only grow our core and are cloud at fast growth rates, but we will do both profitably. that is unlike most of the competitors in the cloud space. >> will you reach your goal by the end of next year? we reiterated and we basically said we will do three billion euros by 2017.

we have that and provided a midterm guidance at 2017. i could doubt be poor confident -- i could not be more confident. >> what is the challenge for you? >> you have to declare that you are willing to innovate and change the way you normally did business, which we did a long time ago. in 2010, only reiterated a new strategy, we basically said, the cloud andl go to the we will be there. we know the internet of things has driven an unbelievable insatiable appetite for a device experience that is gorgeous. companyated the whole

to making beautiful user experiences. you have to make software and innovation easy to consume. that is why we move the company to be the cloud company. you areidea is -- dealing with the world's fastest database and application platform. you can increase the speed of operations by 10 to 100,000 times. you fight much lower cost and higher part of timothy and you generate new business processes in all industries in all markets that help questions grow and do so in a highly profitable way. that is what we are. we do the complex things that make them look simple. becoming sole ceo in may.

how was the german coming along? >> i love it year. here.ove it i am working on my language skills. 20,000 very inspired employees in germany. they are doing a great job and we have an unbelievable aspiration for what sap can be. would 67,000 women and men behind me, i have a good feeling about her future. >> bill, you are known as the technology company. you would have witnessed what is going on with technology stocks. you have not been swept along in this decline? a lot of the traditional text got -- text -- tech stocks have

whether the decline. are we seeing a repeat of what happened in 2000? for instance? >> i think you might very well be. here is the situation. a billiondeclared euros of profits to the shareholders and we are guiding 6 billion profit. we are going to be the cloud company. we are the only company that is doing it profitably. some companies out there, those internet fast-moving, they are going pretty fast, but unfortunately, they are losing money faster than their topline growth rate. say, i believe these companies will grow at

incredibly fast rates. they will be able to keep the sales and marketing costs in check. we have one benchmark of the large company that has been in the industry for 10 years and they did more revenue than any other sales company and they are still losing a quarter of a billion in a year. they have not proven they can make money. investors want to see growth on the top line and they want to see expansion on the bottom line. to talk to you. we will see you soon. let's get over to jonathan ferro for the fx check. it is driving the dollar

lower. it is also a drying the euro a little bit higher. keeping the euro elevated. mandate and we are not hitting it. the problem for the euro is the euro is not going lower. mario draghi, a little bit of verbal intervention last week. for the lastothing couple of days. the french industry manager said we needed eu meeting on the euro. picture that one. the euro alone, becoming more and more politicized. emergency services continuing to search for 300 people missing after a ferry boat sank off the coast of south korea. have been rescued, most of

the passengers were high school student. john kerry's arrived in geneva for crisis meetings with russia, ukraine, and the eu. president obama says russia will face increasing economic penalties unless president putin stop supporting separatist ukraine.in janet yellen is looking for wages. they gains continue to proceed proceed.oric we -- to >> policy can be most effective at reducing uncertainty. >> the spiderman movies are a couple of examples of, >> making the leap to box office -- comic

books making the leap to the box office. i am joined by an expert. he is the chair of the comic book alliance. good to see you again. was last we spoke summer when the latest superman film -- do we need another superman movie? let's replicate. do we need another spiderman movie? there were three other films, of five-year gap. do we need another film? ask him maybe a little bit too soon. -- >> maybe a little bit too soon. it is sony columbia wanting to hold on to the franchise.

>> would you like to see spiderman within the marvel universe? >> it will be really nice to see those characters interact, but they have a strange situation. you have all of these groups split out. mutants inreally do the avengers world. in the comics, they all exist in the same universe. for an expert, for a fanlike yourself, the dream would be to have the whole lot in one universe. you have the avengers were you have a host of characters in one film. it was a massive suggest -- if you throw in spiderman, it is too many characters.

if you get the right character on the right balance, it is possible to do that. having those little hints is very nice. those little things, that is what fans really look for. the amazing spiderman was not as profitable as the original three. spiderman -- they are not the dark knight tight success. you on a film to break a billion dollars. that is what the warner bros. will be praying for.

>> there is a two-tiered structure and people are looking for that epic saying. -- epic thing. this spiderman is the most expensive one they have done so far. biggest production they have done in new york ever. these are the biggest adaptations. -- there the avengers is iron man. they are big earners, aren't they? are you happy with the way they have adopted -- been adapted? which would you say is most true ?

>> i like the very first captain america. it had a nice retro feel about it and that was directed by joe johnson. >> you like the second captain america as well? it is slightly different in tone and feel. >> that isn't it -- it has action-adventure and what is .ice is they keep building that ties into the films. you are creating this you are buying into everything. of, butdo we get sick adaptations? -- comic book adaptations? you have teenage mutant ninja turtles. fantastic for comes back as well. is there an overdose?

>> as long as the characters are interesting and the story is good, there will always be an interest for. taking that leap from the comics page onto the big screen -- >> why not leap onto the small screen? publisher, we are doing a series. a graphic novel anthology, lots of short stories. as in the same style as twilight zone. a bigs going to be growing area. >> you have the agents of shields, the walking dead. >> the walking dead -- i think it started out at 5 million. when it first started.

now it is up to about 12 million viewers. >> will we see more and more comic book adaptations? 13 is a french canadian production based on a french graphic novel series. i do not think it will end anytime soon. >> what is humanoid? -- we publish a lover the world. influence of movies on comics excess gone the other way as well. this is their summit block oster -- some -- summer blockbuster. >> it has gone from comic books to films.

>> we have bruce willis and scott glenn. to the mind? do they mind? always white in the comments and they did an offshoot. it became like a self-fulfilling prophecy. he was a big comic book fan anyway. >> favorite, but film of all time -- comic book film of all time? >>it became like a self-fulfillg prophecy i have a soft side fore rocketeer. >> come back in the summer. we will chat more. it to see you again.

it -- it is good to see you again. depressed pandas, we will tell you what park workers did to cheer her up. ♪

of the to look at some most compelling images of the day. here is one for your bucket list. running the marathon at the north pole. runners gathered in russia in the north pole. this easter is bunny hop a day early because of a hailstorm. the giant female panda seem depressed after her panda was sent to another part of the country. they build her an amusement park. it even came with a tv set.

depressed.l is. he >> that is one of his best ones yet. a depressed panda in china decided to watch me for a couple of minutes. >> janet yellen has spoken. >> market express. decide how doto you measure this economy? janet yellen has said it is going to be two years before she sees is getting back the kind of normalized inflation --

>> that does not mean it will take two years for rates to go up, does it? can i finish? you have this instant light switch. in theory, much longer than we are pulling they back in terms of quantitative easing. cheap rates are here for a long period of time. the s&p and raced -- he raced -- he raced its entire loss for the year. -- erased its entire loss for the year. .e did really say that >> he checked the comparison between 2000 and now.

>> it was relevant for them because they make money, yes. he is making the comparison between him and some of those cloud companies, which are not making money. >> profitless companies. profit. not delivering the argument thus far, i do not think for one moment that the german is calling all of the technology companies. all ofrmott is calling the technology companies. china is getting ready to do the reasonable banks have to put aside. giving the periphery, this is where they have been trying to squeeze the economy to get to the center.

that not sound like a contradiction? we talked about this a couple of days ago. to deliver social stability as well and to do that you need to have growth. do one thing in the world that everybody wants to avoid was a lehman brothers like moment in china. capacity to make sure something like that does not happen, but they will not run the risk that they let the housing market fall over or the shadow banking. pimco juster ceo of did a great piece on china.

it. and dong piece on china we care or do we not care? the company reported sales the unexpectedly dropped.

>> we are a minutes away from the start of today's european equity session. here.hughes is u.s. futures are lower. back futures are down. .- dax futures are down interesting after the janet yellen comments. heard such mixed messages. her initial statement hinted at rate hikes and she went away from them. you cannot read too much into it. we are looking at ukraine and these potential sanctions and what is happening. you have these talks happening today. the only people looking for any kind of tough sanctions are the u.s.

only ones -- >> this eu have the stomach to try harder sanctions because of the ties between the two areas? >> you have a lot of german companies, germany has the closest ties to russia. it cannot afford for this to happen. -- ne wants this , weakness in emerging markets. that is a big theme, isn't it? this issue in china where they are not seeing any growth at all. these things are not necessarily

materializing. there is a good deal of that around halfted -- washe world's whiskey consumed in india. >> i never knew that. >> an amazing figure. -- its not the first time is quite a lot of consolidation in the sector, but you can see why this is happening. you had these really struggling areas. expensive.sive, very when yout looks like are struggling in so many areas, india seems to be one of the better places to branch out. next.the move is

they are watching diageo. enjoy the easter holidays. i will see you on tuesday.

>> welcome to "on the move." coming up this hour, we will be speaking to the chief executive on the back of his company's latest figure. we are moments away from the start of european trading. our markets team has everything cutter -- everything covered. with me is caroline hyde. david tweed joins us from berlin. we have a little bit of a renewed tech selloff on the back

of google earnings. >> there was nervousness, wasn't there? live up to not quite expectations. it is all about mobile. there are still plenty -- they're still selling plenty of advertising. larry page is not managing to charge as much. is eventually, mobile advertising will cost the same, if not more, than desk top. you get so much more information about a person. acrossill have a read for all of the european companies that may be affected by the slowdown. eibo --ugh -- wav >> who would