have done and it is still contracting. the currency, the currency is that a 16 month long. -- low. the currency can do for you what you cannot do for the economy. >> sometimes. >> do not burst my bubble. >> we will also have pmi figures out from france. 50 indicatese expansion, but it is a lot below what analysts were estimating. later on in the hour, we will have german pmi. we will bring you those breaking numbers. we are watching china data, futures, pmi in europe, and a little bit of tech. is not theings, it

glitz and glamour of the likes of apple or samsung. -- more thanompany 4 million people in the world touch something that has an holding chip in it every single day. arm holdings gave us numbers --ay, slowing in terms of the licenses are picking up. that bodes well for the future. many analysts say they are a bit more positive for the second half of the year. >> speaking of key concerns in tact, we have numbers from facebook and apple. >> the glitz and the glamour. it is remarkable. we could have a second quarter

for apple delivering just under 20 million ipads. flat revenue could be the first time they have delivered flat .evenue in over a decade for facebook, what is next? talk about possibly going into banking. we will have a chat about that. >> in terms of what else we are watching -- we have a couple of data coming out. we have the minutes from the bank of england. i am in a zone of my own. it is unlikely to be that he did. david einhorn has a few dollars under management and he is talking the tech market, a bit

of a brave call. to stocks that ipo would with fluffy values. that french did it will play into some of the mood. as far as equities are concerned, brushing aside that view about what is happening with china. european equity markets are declining, contracting ever so slowly. let's go to paris. no big movers in france. in terms of u.k., it will be the bank of england minutes that drive the market. i will bring not to you at 9:30 a.m. ab foods, and opening new stores in the united states. they are set to sign a lease for 70,000 feet in boston.

the primark brand is something that is driving the stock this morning. arm holdings is saying, royalty sales were up i three percent. this time last year they rose by over 30%. erickson saying, these guys make wireless networks. we saw the japanese in the u.s. spend on 4g. often margins are rising. much better than the market estimated. .ales fall by over nine percent the stock is off by 4.4%. that is delivering very little today and promising a great deal for tomorrow. the aussie dollar is where you are seeing some of the biggest

movement. it drops as consumer prices, inflation under shoots in australia by a third of one percent. as peopleit lower make the assumption that you will see softer rates for a longer. of time. -- longer. time.iod of of thes a member investment committee where he helps oversee about 50 billion euros of assets. thank you for coming in. when you look at the overarching themes, we see a lot of weakness from china. investors saying they have the situation in hand and there is nothing to work -- worry about. situation in europe or a high euro is hampering growth. what do you see as the biggest risk to the markets right now?

deflationary pressure that we are seeing around the world. in europe, it is one of the key concerns. one thing that is different is that real interests are much higher in europe because of the slow inflation. despite all of the progress we have seen. this remains one of the key concerns. this explains why within the global world, we keep referring to the u.s. as the focus of our investment strategy. believe wet mean you are risking deflation and we are risking a japan mike situation? -- japan-like situation? >> the latest announcement they have made where you have this unanimous support of the board members to implement some

unconventional measures in order to address deflation is a clear sign the risk is there and they have that in mind. we would not be too negative nevertheless on the possibility of ecb intervening. what we have seen over the last years is that every time we reached critical state, in terms of liquidity or in terms of preserving the euro and the sovereign debt crisis, the ecb did step to the floor and put in place some action. >> a lot of investors say it is just words for now. we will come back to that debate very shortly. here is a look at what else is coming up. we will break down key results from arm ahead of apple and facebook later today.

china manufacturing shows weakness despite stimulus and mixed reviews. elon musk -- not everyone is happy. ♪

>> welcome back. i am francine lacqua. this is "on the move."

we have all angles covered on bloomberg. this is a stock that is on the move, it is ab foods after primarkng primax -- will be opening in the united states. lot on primark and that is what is driving growth. that is why they are expanding in the u.s. that stock is one of the biggest gainers in today's trading session. shares of arm holdings were lower after semiconductor giant put in slower growth. later today, numbers from apple and facebook will come out amid increasing concerns. training is for all of the details, care line height --

joining us for all of the details, caroline hyde. it is amazing how much arm holdings doesn't terms of chip designs. -- does in terms of chip design. 95% of all smartphones have an arm design chip within them. 4 billion people are touching something that arm helped to design every single day. this company is everywhere in every single country. there is some concern about fluctuation. the iphone uses the most powerful chip. towards the low end emerging markets and buying up the less powerful smartphones, less powerful chips. they were sounding very positive about the second half.

it is not just mobile, it is the internet of things. >> wearable tech. first of all, apple and facebook, there are companies that everybody knows. there is a concern about saturation. the numbers are always going to start or less. -- startle us. they could deliver the first flap decade in a decade -- first t revenue in a decade. what is next? and no have that concern one has an answer, that is when people start getting a little concerned about valuation. >> i know one investor is not

worried. you cannot be pleased with the performance. >> i am quite pleased with the performance. even when you look at the share price, the share price is still doing fine. people have in mind the 20% drop but we had a few weeks ago. growthu look at prospects, you still have tremendous growth and there is a big difference. capital goods.is facebook, what you are selling is usage. you are selling something that is a repeat. remember, facebook advertising revenue was growing year on year thanks to

advertising on mobile. cycle, of this product which will describe -- >> we will talk about david einhorn said. i do not understand what they are trying to do. will they leave them alone or are they trying to reinvent a new company? kind of ecosystem. you want people to stay as long as possible in your ecosystem in until therel and resurfaces. everything i have done so far is to keep people on board. you are right, the valuation is high. the point is that sometimes whattors do not think of kinds of earnings growth you would get ahead of the valuation.

abb earnings prospect is not as great as we anticipate. google had an extremely valuation. eight years down the road, the share price has almost tripled. today this is the kind of long-term investment you should see and i think the point is not the facebook valuation is sure or last year, the weather it will be -- but whether it will be five years from now. >> david einhorn is betting against tech stocks. at one hundredok times earnings. you have amazon in triple

figures as well. apple is that their team times earnings -- 13 times earnings. if we get a selloff, should we discriminate? or do we see a blanket selloff? we will see how things go .orward, there is no such thing as a kind bubble.t of the 2000 you have some great divergence in terms of valuation and growth prospects. looking at the specific again, the google example is here to show that you

if youe a high valuation have the earnings goals supporting this valuation. as investors, you need to be active and very selective. as an investor, you need to be a good stock picker because there are different stock stories within the tech sector. holdings and the future is the internet of things. you can have your benz connected. where is the future that you are betting on? >> in terms of facebook, what you are buying is how social media is becoming an integral part of every advertising strategy of every firm. it is still much more cost competitive than traditional advertising.

this kind of competitive advantage that you are playing in. you are buying the quality of the management. sector, where you have this need to reinvent not want to i do blame tim cook, but when you compare april with steve jobs -- apple withcook steve jobs and apple with tim cook. whatsappieve in the acquisition. this is something tangible. when i look at my younger colleagues, this is something real. we are not talking about buying

a vision. >> is this going to be a mobile payment? there are more and more rumors out there that facebook will become some kind of online retailing bank. would you be happy with that? apps.have one of the best >> it is definitely a possibility. when you can interconnect, the ,ffers you can make two people you have a strong ecosystem. it does not mean that facebook needs to run from a to zed. much.nk you so caroline hyde, jonathan ferro. keep it right here.

the china slowdown continues and we will find out what it needs for market later in the hour. ♪

>> welcome back. i am francine lacqua. here are some companies on the move for you. biggest network

maker is focusing on more lucrative contracts. this is the fourth consecutive quarter that eric since profitability -- ericsson's profitability has not improved. wrapped up talks with french regulators about how to pay for content and to comply with streaming news. it is proposed merger with publicist is moving slower than anticipated. approvals from french tax authorities and the residency commission. . few final thoughts he is a member of the investment committee. thank you for sticking around. we talked about the tech stocks that you like, including facebook. he talked about the world in

general. emerging markets -- you quite bullish on the emerging markets. >> you need to be very selective -- we still find some great opportunities for couples. >> how do you rank brazil at the moment? we're seeing a lot of riots on the ground today. .razil is a mess this is very good for the business. we are shoulders of one company called google power.

they are a great company, but in the right spot. this is a clear example of how global leaders in europe can take advantage of worlds around the world. it is very successful in china. we sell plenty of them in the news yesterday from pharma. >> we got all of the deals we were hoping for. they have started to two in the portfolio. these are the kind of deals who we areecting from -- expecting.

review the stock with lots of upside potential. >> thank you for your thoughts today. about china. ♪

welcome back. we're just getting some breaking news. we have some german pmi just crossing the bloomberg terminal. this is for the april manufacturing figure. pmi at 54.2. 53.8.dian estimate was we will have the aggregate number for the whole of the eurozone in about 40 minutes from now. --were expecting a figure

germany, though, much better than expected. the euro is pretty much unchanged. we will keep on top of that story and bring you many breaking news. we are 30 minutes into the trading day so let's see how things are shaping up. the markets are pretty much unchanged despite a pretty disappointing figure from china. -- china may slow down a bit but everything seems in control. outsold all other carmakers for a third straight quarter helped by rising demand in japan and china. gm and volkswagen tied for second place with about 2.4

million sales each. -- the is considering acting president said the move is needed after the discovery of two bodies our possibly killed by prohibition militants. asian stocks erased gains after chinese manufacturing data signals contractions for a close month. this is the first reading since the premier unveiled the minilled many sinless -- -stimulus. >> we just got some news from barclays. >> we are getting some breaking news from a report in regards to

barclays. faces his first quarter results and his shareholders -- some are saying that 7500 jobs need to be eliminated. 5000 -- of those job losses and this is according 30%ou are looking at 25 to of the banks employ the employee's. be managing directors would be the prime candidates to take out a layer of management followed by junior positions.

17% -- lossped by of fixed income commodities is probably the best thing to have happened to strategic investors locked into barclays. it is finally pushed management to solve a problem that they thought of as cyclical. this could be the best thing. course.enges, of he is getting quite a lot of .takes >> this is the most contentious area. you saw a return on equity.

overall, this part of the bank falling to just under eight percent. when it comes to pay, this is a critical issue. pressure to pay for human capital in the united states of america. as profits fell, chris wheeler says there is a feeling that he has lost control of the business. the u.k. local authorities for pensions were prepared to impose the deal. quite a killer vote for jenkins. note, thank you so

much. let's return to one of our top stories today, the latest in the china data and what it means for the market. great to have you on the program. give me a sense of whether you are concerned about china or not . i have a lot of guests coming in this very show -- coming on this very show and saying, i am worried a little bit. -- i do notnt is know either what numbers i'm looking at. >> we are concerned about the tight rope at the chinese government has to perform. it is a transition which is bit of a challenging one. so far, they have been proving relatively skillful and fine

tuning the past. we are talking about a high-class problem. percent.l not be six ?hy are we so confident policy makers been scratching their heads for centuries to try to fine-tune policies. >> it is a very sad question. the chinese economy -- the government does have quite a grip on what companies are doing and what regional governments are doing. exchange rate policy as well. they have more lovers at their

disposable. says -- andernment there are plenty of other levels. direct spending, you given that they do not have a fixed deficit , which is plaguing them. flexibility they have in terms of their own budget, monetary policy. >> how confident are you -- are you confident enough to suggest -- we want to see -- we won't see a hard landing. >> that is the bottom line. 7.0% is below market consensus. it used to be.

>> thank you so much for all of that. elon musk made an appearance in beijing and deliver the nations first model s. >> elon musk has said he is not really sure. this is day one of delivery. >> what we see right now is really strong demand. more demand we can fulfill this year. it will be quite a big number overtime. ,y instructions to the team spent money as fast as you can without wasting it.

will tesla form a partnership or go it alone? early stages,e sort of in the crawlspace. even a year from now, we will not be quite young as a company. he says he is generally happy with the car that says certain backseats are not ideal. a millionhat of dollar car.

>> others, though, we are less forgiving. buyerman claimed to be a of the 120 thousand model s and was up said at delivery delays from the factory in california. >> we have delayed some of the customer deliveries in china for a few months in order to ensure that when they get their car, they will have great experience. some of them were upset about that. >> he wants to make them here to avoid california's 25% and/or terrace. arriff. the level of support has been great. i have nothing bad to say at all. books were you expecting this sort of crowd here today? >> no.

>> do you have a clear title policy? >> we just want to do everything that is needed. we want to do the right thing. >> the pulses coming up at the top of the hour. we will continue the tech scene and talk about strategy. former investment banker turned columnist, mrs. money penny joins us to discuss her new book. on the move is back only return. -- when we return. ♪

unsubsidizedpoint is now down and someplace below $50. more people are getting access to smart phones. smartphones, a lot of growth ahead of it. even those entry-level smartphones. >> that was arm chief executive speaking to us in his first interview of the day.

let's get to one of the other top stories and the crisis in ukraine. ukraine is on the verge of operations to oust militants from eastern cities. our europe editor is in berlin with the latest. the situation is deteriorating by the day. the last thing we really had that was the catch point was the fact that the acting prime minister of ukraine announced last night that two bodies have been found in eastern ukraine and both showed signs of being tortured. one of the bodies has been identified and the other one has not. party of theing current president.

that particular operation had been on ice for five days and was the basis of this geneva tatters. which lies in the russians 40,000 troops on the border. what happened to special operations? saidime, the united states it will deploy 600 troops entered countries and eastern europe. the united states threatening once again sanctions in the coming days. sanctions. threatens how much damage would that do to ukraine's economy? it would have a disastrous

effect on the ukraine holiday. ukraine is attempting to stockpile as much right now. the united states will help. i want to bring to your attention something positive the ukraine energy minister saying maybe they will meet this .hursday that is something to watch out for. >> david tweed with the very latest on ukraine. let's bring you up to speed with some companies on the move. deutsche bank is said to be shrinking its equities business in latin america.

that is according to people familiar with the bank. shares are lower after the third largest shareholder rejected a bid from volkswagen. the offer does not fully reflect the chipmakers long-term value. primark is opening stores in the u.s. northeast. adjusted first-half earnings came in above analyst estimates this morning. you are looking at live pictures . we will be speaking to him in the next hour. .e is talking about the release he is speaking to are very own guy johnson at that conference.

>> it is clear that they regard themselves as part of the spectrum. ♪

>> welcome back to "on the move." let's turn to the cinema of the future. is betting that is the next

craze to take over movie theaters. jon erlichman went to hollywood to get a feel for it. >> welcome to the movie theater of the future. cool, tryught 3-d was adding moving chairs, strobe lights, and smoke. let's do it. feet are shaking. the company behind this is a korean theater chain. chains in europe and mexico came calling. downtown los angeles is retrofitting one of its theaters . a process that can cost $700,000. looks to be competitive and relevant, you have to be if all thing. .- be it evolving

>> although this can be controlled through a tablet. effects that are timed. >> they engage four of the five senses. >> i smell some burning rubber. it is raining. i am in the theater and it is raining. the four d experience cost six dollars more. >> we anticipate there will be a strong demand to roll it out into other movie theaters. >> you are moving with him a little bit. >> you are floating a little bit. whoa, that was crazy.

>> you did not sound pretty excited, but it looks pretty cool. let's talk pmi. >> not exactly going in the -- breaking news. underwhelm's. look behind the headline numbers and what you see is a story about cost and then put prices. they are slowing in germany in manufacturing and services. in france, they are cutting prices. this is everything set mario draghi and they ecb -- and the

ecb are most worried about. >> so far, that is encouraging news. may show up in tomorrow's confidence numbers. to cancel orders, to stop doing business might be a longer lead time. i could be wrong. they might well show a different complexion. >> the export a lot to russia. -- the export a lot to russia. >> that has not come through. the services beat and the manufacturing beat, but it is about the input cost. russia is undoubtedly a huge is to -- a huge issue.

>> we are getting the aggregate eu manufacturing figure at the top of the hour. stay with bloomberg tv. ♪

>> smartphones lowdown. demand for higher devices ways on arm as apple braces for its first flat sales in a decade. china worries the world. asia'sfalls when second-largest economy fail to respond to stimulus. and u.s. troops arrive in eastern europe as the crisis in ukraine escalates. welcome to "the pulse," live from bloomberg european headquarters in london. i am francine lacqua. guy