>> the fighting spreads across ukraine and kiev starts to lose its grip. a clean break, portugal announces its exit from the three-year bailout program without seeking a cautionary credit line. abe ise prime minister in paris to meet president hollande amid concerns over russia and china. welcome to "countdown."

governmenttral continues its biggest defensive so far against pro-russian separatists as unrest spreads to the black sea port. >> plenty to talk about. we have the ukraine central government, its forces taking atv power -- tv tower back from separatist. lots of fighting, a local website reporting that seven have been killed in the fighting. the biggest issue is owed us storming police headquarters yesterday. activist pro-russian that were freed by pro-russian -- what shall we call them? militia? well we have now is a situation where most of the fighting has

been in the easternmost parts of the country right alongside the russian border. now we have it in places like odessa, which is very much in the south. >> why is it such a geopolitical -- why is it so important? >> i never thought we would talk about this so early. republic of former moldova that became an independent state with the fall of the soviet union. inside, you have an enclave of about 100,000 people which is controlled by russia. we have heard over the last few weeks, resident couldn't talking about his concerns about this -- president vladimir putin talking about his concerns about this place being blockaded. the russian government may want land bridgeo-called

for the easternmost parts of the country.

price to a 13 month high. ministerpanese prime is in paris today as a special guest. joining us now is the secretary-general. it morning, sir. q i for joining us today. morning, sir. thank you for joining us today. >> we have to tiptoe around the economy. we will not talk about the forecast, but we will talk about the economy. on howthe general read you -- give us a general read on how you see the global economy right now. >> there is no mystery, the global economy is better. it has been for quite some time. the united states moving to two

or three percent growth. europe is coming out of its recession. japan is moving away from deflation, where it was from about 15 years. there is a slowdown in some of the emerging economies, china is holding its own. this is the way it looks. better, but with downside risks and with problems in europe having to do with the banking ofon with the capitalization the number of banks. in the case of japan, the third abenomics has not yet been defined. , the economyates is doing well, though there was a glitch for the first quarter because of the weather. very strong, very vibrant labor market.

doing better with the housing markets. the u.s. is good news. >> what does it mean for central the united within states? people have read the jobs report in different ways. the participation the lowest since 1978. there's is not much evidence of wage growth. i think the tapering, not the is something that will continue to happen. it was predictable, it was inevitable, and desirable. going back to normality and normal is good. we should not get addicted to the steroids.

the u.k. is in the middle because it got into the crisis a year later. twoeuropeans are about years behind this process and we expect both the u.k. for somewhat longer, although the u.k. is doing very well. the gdp growth and in the case of the european and the euro area, to continue to have low rates for quite some time in order to consolidate the recovery. >> you touched on japan, i want to come back to it because yes, we will hear more evidence of the third arrow from the prime minister. there has been a lot of talk and it comes to the third arrow but not a lot of implementation. is this the last chance when it comes to the third arrow?

finallywhen mr. abe is going to have to deliver on economic reform? cannot be any implementation of the program if it has not been announced. as far as we know, this will be done in june. we are all preparing for that announcement. we have contributed to this announcement. two weeks ago, i was in tokyo and we delivered to the prime minister our own contribution of what we thought was required for the third arrow and i have to participation in the labor market was an important component. they have 230% of debt to gdp. this is the highest ever in a g8 country. that is a constraint. you will have to do a careful juggling act between kickstarting the economy, which

they are already doing. there is a nuisance and confidence -- there is a new sense of confidence in japan. what will be done on the important issues of structural change, like education, innovation, competition, deregulation, flexibility in the labor markets? more than a third of the labor is with short-term contracts and does not have the basic guarantees. there is a dualism in the labor market and that has to be addressed. there are a number of issues on the structural side. be the big test . the prime minister is fully aware and he will be talking about what is going on now and the plans he may have. we may see a very interesting premier here at the oecd.

>> i would love to hear your view of what is happening in ukraine. the oecd suspending talks with russia about joining the oecd. events really flaring up over the weekend. the crisis is escalating. what is your take on how this crisis is going to proceed and the implications for markets around the world? >> it is very serious and very untimely. it is not because russia or ukraine have great linkages in terms of trade or financing or investment to the rest of the world. it is that this is causing tension overall. systemic tension, fear of further confrontations and that is having an impact. at a time when we were trying to

build back the trust, trust is one of the big legacies of the crisis. we have slow growth, high unemployment, growing inequalities, and we have a destruction of trust and we're trying to build up the trust. and then this happens and this is slowing down the process. this is bad for russia. this is bad for the world out large. it is very unfortunate. we are calling on all parties to de-escalate and to bring the pressure down. we have postpone further talks for the time being. clearly, when we will resume will depend on things on the ground, real events. noticed on your website, you have this better life index. many users have looked at this

index and they have shared their view on what makes a better life. what interesting things have you uncovered? .t is not just about gdp it looks at a whole array of things. it is something i thought worth touching on with you. >> we have had millions of people who have visited the ,ebsite in different languages which is going beyond gdp in saying what makes a life? is it your income? is that the overall level of wealth generated? the answer, of course, is no. we are measuring at least 11 other indicators having to do with security, having to do with engagement with your community, having to do with political commitments, having to do with the balance between your work and your family life, having to

do with cultural and educational issues. a number of other things that make the quality of life. we are measuring it in different countries. each country has different weights in terms of the important they give to all of these elements. this is a powerful weapon in order to tell policymakers what it is that people want. what they have to deliver to have more satisfied customers. at the same time, of course, this will help them to get it right in terms of the support they will get for the public policies they deliver. >> always good to talk to you. ,ood luck with the forum resilient economies for inclusive societies. the oecd secretary-general speaking to us live from paris. taking stock of the earnings season.

♪

welcome back. is 7:16 a.m..ndon

let's take a look at the corporate earnings season. vice chairman of bnp paribas investor partners joins us live from paris. good morning, william. how do you see the earnings season so far? it is the only factor that is expected to underpin equity markets over the course of this year. if you look at the year over year growth in the u.s., it is too slow. if you look at the year-over-year growth in u.k. earnings, it is way too slow. doing a better job in massaging the expectations. with respect to europe, it is simply disappointing and the street was expecting this year, something like 14% earnings growth. >> you than what you have said, are equity levels are at record

levels in the u.s., are they justified? >> based on the view that earnings will accelerate. for the time being, this is what one should expect. this should give you more confidence about way that earnings would evolve. europe has been represented by the strengthening of the euro against a number of the emerging market currencies. recently, that has reversed. what is interesting is that everybody is thinking the trend for multi-yields is up, markets are relieved when it see some dispersion, difference in quality on strength. it means the worsening interest

rate environment is not yet imminent to start to shake the market up. that when -- >> when might shake the "william? >> it depends when we would see the labor market data in the u.s.. broad set of at a indicators. if the vast majority of these indicators move in the right ,irection and start to flash people start to react. obviousement to put the from janet yellen. the fomc member forecast will be looked at with a looking glass to gauge whether it is on for summer or fall next year.

that would be something the market would have to work on digesting. >> is that means yields in europe -- does that mean yields yields at record lows, will the compression -- will the yields continue to decline in those nations? there is a limit on how far you can compress them. everybody is taking a view of the world. on the other hand, there are limits on how far you can compress. ecb qe, prospect of the there is no reason why these yields would start to move up. we are in a very and nine market the nine market in

europe. >> thanks, william. coming up, as the ukrainian government continues its defensive against pro-russian separatist, we will have more from russia about the international reaction. ♪

>> welcome back. i am mark barton. this is bloomberg television. ukraine seeking to dislodge rebels from its industrial heartland. reporter henry myers joins us from moscow. henry, what is the situation on the ground in eastern and southern ukraine? >> currently, the ukrainian inernment is continuing eastern ukraine. there were casualties, people were killed yesterday. mainown which has been the town held by the pro-russian rebels is still partly under their control. there is fighting ongoing in those areas. in the south, where more than 40 people were killed last friday,

there was continuing violence yesterday, row russian activist seized a police station and there were more deaths reported. >> how was russia responding? could warned that it intervene militarily. this outlook likely? >> at this stage, not so likely. they have been pursuing a strategy according to western countries and ukrainian government of infiltrating agents and assisting the pro-russian rebels. they are using covert methods. the russian reaction was very strong, though, and the spokesman for president vladimir putin said he had been thinking very seriously about what to do next. russia is receiving thousands of phone calls from residents of those areas who are asking for russian help. butlikelihood is going up,

the risk for russia would be immense. it would provoke large-scale western sanctions and be fraught with military risks. >> does that mean there is room for further diplomacy? the os cd isf coming to moscow on wednesday and the german government is trying to revise the so-called geneva agreement, which was a deal signed on april 17 in geneva by russia, the united states, the european union, and ukraine. they are trying, but it is extremely difficult to try to get back on the track of diplomacy. >> henry, thank you. heading downill be to the oecd for him in paris to look at global inequality with one of the people fighting to narrow the gap. ♪

>> welcome back. let's head out to jonathan ferro. at,wo traits to look chinese manufacturing, the hsbc reading. it is a contraction. read across the market was pretty obvious early this morning. . weaker aussie dollar what you did tonight is the reserve bank of australia meeting.

if you're looking at dollar-yen, japanese yen moving higher. the dollar is getting weaker and money going into the japanese yen. bloomberg tophe headlines. ukraine is seeking to dislodge separatist in the industrial heartland with more military action. the government has regained control of a television tower seized by pro-russian forces. a top republican center in the united states is calling for either -- even tougher sanctions against russia. >> the russian stock market surged. would would do, i sanction the energy economy of russia, the banking system, and try to drive the russian economy into the ground. i would help arm the ukrainian people so they could defend themselves.

>> stocks in asia lower today after china's manufacturing contracted for a fourth straight month. belowbc index dipped analyst estimates. conflicting reports on whether pfizer will make an enhanced offer for astrazeneca. the sunday times says pfizer will lobby shareholders forcing the company to accept the offer and warning there will not be an increased bid. poorestn the world's countries are still spending only one percent of their american counterparts. a new world bank report shows global economic inequalities have shrunk in recent years. let's bring in philip jennings. --joins us from the oh ecb

the oecd forum. thank you for joining us today. >> good morning. >> what is the message that you will be bringing to the forum in paris this week? >> the same is all about inclusive societies, inclusive economies. my basic message is that if we are going to have inclusive societies, we need to make a new deal at work. i am surprised by those figures from the world bank on economic inequality. we have record levels of economic inequality. record levels of income inequality. we will not realize the objective of inclusive economies with a continuation of the unfairness and the distribution of the income that we see today in both the developed and emerging world.

there have been poverty reduction, but at the end of the day, more than a billion people are still surviving on less than two dollars a day. and bad forainable business, bad for economies, add for our communities. that is the message -- bad for our communities. that is the message. it is about decent work and quality jobs. >> what is term vision for inclusive growth? >> it starts from the question of distribution. reinstitute those building blocks -- we need to reinstitute those building blocks. it is not fair, not right that all of the income gains of the last decade have gone to the top one percent. we need to attack the problem of earnings at the top end of the income scale. ceo salaries are off the scale, taxation has dropped, their disposable income has increased

and it has not benefited the rest of us. we need to improve the share of wages. we can do this through living wage initiatives and to collect the bargaining, giving people a voice at the table. giving people the right to organize into unions. ensuring that working people have a seat at the table when we are talking about the distribution of income. we need active labor market policies. people are stressed out. they are under significant pressure to perform. this is not helping the working atmosphere in business or the well-being and communities and in homes. question is atn the top of the pile. >> the secretary-general of the oecd was talking to me earlier about the risk of the loss of

trust in government's. a loss of trust in the system from these high levels of unemployment. what are the implications of that loss of trust for societies across the world? just the risk, it is a reality. the global union movement does its own polling, global polling of communities and working people around the world. they have lost confidence and trust in their political leadership. the risk is that the top one percent seems to have purchased the political machinery in terms of the messaging and investment and the lobbying process. we had this political process which is in an orbit which is not touching the day to day realities of working people. working people do not feel the politicians are addressing their concerns about unemployment, about youth unemployment, about

the fact that their incomes do not stretch to the end of the week or the month. the risk is this general corrosion of faith and institutions which is bad for democracy. it is also bad for business because when trust breaks down in business, when people don't believe what the business community is saying, it is not good for business and the products they are selling. a loss of trust is corrosive and that has to be addressed. we have had exclusive economic growth for a small portion of the population. we have to talk about the concerns of the 99%. one percent have made hay. time for some sacrifice and new taxation policies. we have to have a policy of including the people and the benefits of economic growth. it is not happening. >> how do you implement taxation

policies without hurting business? >> let's not talk about the pain of business and taxation. the level of tax avoidance and evasion is off the scale. the highest earners in the developed economy is so slow as it -- is as low as it has ever been. these people have to pay their property taxes. in ordinary working man and woman, i represent workers in the service industry, they'll pay their taxation. they are good citizens, they understand fairplay. what we are seeing, using the language of hurt and pain is frankly nonsense. i am pleased to see the g-20 is taking more measures to clamp down on tax evasion. i would like the left to discover its voice and have the

courage to say that we need fair taxation policies for those at the top and the economies will not collapse and businesses will not run away because they're being asked to pair there've -- pay their fair contribution. things are out of kilter. it is time for some political courage. and then we will begin to see the installation and the rebirth of trust in our institutions. are doing countries -- >> what countries are doing a better job? >> i think the model is in the countries. theave seen because of growth of incomes at the top vent, but nevertheless, the essential social contract stays -- they will be balance, there

will be active labor market policies, there will be a debate within the business, the voice of labor is respected. unions play a key role in the life of the business and enterprise. they feel included. they feel they have some

.

>> welcome back. i am mark barton. let's talk about japanese prime minister. he begins the french leg of his european tour today. he will meet francois hollande later. david tweed joins us. defense ties will be high on the agenda along with trade. why defense?

>> it is something that he is very concerned about. china is flexing its military has beennd he himself not exactly up using, what with his visits to the shrine in tokyo which commemorates the .ard that -- war debt he is pro-building up japan's defense forces. one thing they need to do is they need to get access to advanced technology because , mostly companies focused on consumer goods. they have not been pushing defense, like western companies. allowe has done was to japan's defense companies to export again. they have not been able to

export since the 1970's. the idea that these japanese defense contractors will enter into international development deals with european companies, american companies, and get that valuable access to technology. the end of the game is to boost japan's defense capabilities. what we are expecting to hear today is a plan to go into a deal to develop a non-manned -- an unmanned submarine with france. >> what about eu-japan trade talks? how much of a priority is improving trade? talking to thet secretary-general of the oecd. talking about whether japan can get the structural reforms through the third arrow. very difficult for them to do.

he is looking to try to kickstart the economy again using -- you want access to the european market. that is why the eu-japan talks are of the utmost importance. >> david tweed. john is here with the big macro themes of the day. , 48.1.hsbc it is a contraction. more signs of the slow down. when you look at the provinces and the municipalities in china, 30 out of 31 west their growth targets in the first quarter. the targets were lower than the target set in 2013, not a good sign. it is damaging growth. >> richard fisher, said president dallas, when he speaks, we listen. >> -- said president dallas -- fed president dallas, when we

speak -- when he speaks, we listen. he push those conversations out. hawk is notggest talking about a rate rise. the partisan page -- the participation rate was lower. >> we will take a look at how markets are hedging the risks. stay with us. ♪

>> welcome back. let's take a look at the markets. marshal joins us from cyprus. hello, marshall, always good to see you. have talked long and hard about the fed today, what they will do next and how quickly in light of friday's job report. what was your take on the jobs report? from janet yellen's point of view, it was not such a great report. the headline number was excellent, but she has been focusing on the average earnings and those were totally flat. that is one of the things she is focusing on as a sign of the tight labor market. when you have so many people

dropping out of the labor force, what does that mean for the labor market? people should be entering the labor force. i think it means lower for longer because it means there is a lot of slack in the labor market regardless of 200 83,000 people getting jobs. >> does that mean -- 283,000 people getting jobs? >> does that mean it is time to change your thinking? no, i think this is in the limits of what they have been thinking. they will continue to taper off and i also think the ecb is headed in the opposite direction, albeit slowly. the diversions and monetary policy is still there and the growth differential is still there and the dollar will win out, but i think the dollar will be lower for longer than i

expected. >> the timing of the dollar's rise has caught many wrong. the ecb, eventually they will do something and this is all about timing. it is not going to do anything this week, is it? looking back for 19 days in a row, every morning when i come in, i update my spreadsheet. it is really amazing. it started with a 1.38 handle. the eu inflation figure. what will knock it out this week? i do not think we will get a bigger surprise from the ecb so i think we are stuck in these ranges. >> what about sterling? sterling, if ukraine blows up, what happened?

-- thed assumed ukraine problems in ukraine would be bad for the euro, they seem to be bad for the dollar because certain people may be moving their money out of dollars into europe because of the sanctions. if it starts getting hot, it would be bad for the euro. it impacts europe much more than the u.s. it should be bad for the euro. i think dollar-yen may be headed lower still as the safe haven currency because that is where the immediate slows will go into. that is the big wild card for this week. >> rate to chat with you again. -- great to chat with you again. "on the move" is next.

enjoy the bank holiday for those in the u.k.. for those else where, enjoy your day. we will see you tomorrow. ♪ .

>> good morning. you are watching "on the move." i am guy johnson. my colleague is off today. start ofy from the european trade and our markets team has everything covered from markets to currencies. with me is ryan chilcote and jon ferro. jon, let's start with you. low volume. >> low-volume. futures on change. we have been lower.

manufacturing data. the reading and contraction. been trending has lower. a little concerning. >> a little closer to home. the situation in ukraine to tour your -- deteriorated further. >> is opening down lower about 0.25%. last week was a really good week. that is because the sanctions proved to be a lot less meaningful than people were concerned. obviously, a big escalation of violence. also in a dustup. -- also in odessa. people think it is a civil war. going toed ball what is on and portugal. the portuguese -- >> let's talk about what is going on in portugal. >> they will make a plea.

if it a big deal? market, at the bonds massive turnaround. it used to be around 18%. should you bet on portugal or has it gone a little too far? the debate is widely divided. it will go on. >> now, we will go to david. we will talk more about portugal. david, talked to me about what we are seeing overseas, m&a, access to being moved around. we are going to be looking at siemens shares all week. the strategy review coming up on wednesday. we will see the current data. and also speaking about the story they are back to sell the airport infrastructure unit. this seems to be part of the strategy to get rid of the

underperforming units and by ones that are doing better. >> looking forward to that. show.s the jon ferro what those are you watching? >> would like to spread it. the ftse. data out of the u.s. the rest of europe is open. london is a little lazy. let's check out the markets. the currency is close. the cac 40 is down stuck germany, exports. chinese manufacturing. a fourth straight month that the hsbc reading is an contraction. not just in contraction but a mix. it is playing out in the fx market. the aussie dollar is trading a little lower through the morning. coming back as the hours progress. australia's central bank meets later tonight. everybody not looking for change. where you are seeing a bigger

move is dollar/yen. the yen is up. the dollar is getting weaker. not just that, the bank of japan. a lot of people thought they would. he gives absolutely nothing it way. >> ok. thank you very much. you know what will be happening through the rest of the day. let's develop some of the themes. let's go to zürich and get perspective. a portfolio manager. more than $400es million of assets. good morning. i want to start with m&a. a broad theme that seems to be running through is not only siemens but pharmaceuticals are alive with the talk of the story as well. is much can i read into what happening with the health of the market? is driven by m&a

cheap credit and tax lawyers. >> good morning, guys. i agree with that. they seem to make acquisitions and earnings and stock markets were last year and confident and tax is all the rage right now. >> what does it mean for me as an investor? the credit situation will probably get a little worse. central banks will talk about hiking rates. the tax story will probably stay for some time. thet does not tell me how companies are performed operationally. do i follow the money or take a more cautious start? >> i mean, i would buy a company based on -- and you do m&a as an option. i would not be chasing astrazeneca.

however, some other comments look attractive. buying -- that looks, it's trading less than market. if you look at different ,ituations like, allergan trying to take over the company a you can make money if it goes through. in.f a white tonight comes or a bid for shire. they could pay a big premium. >> you seem to be do not assume assume it'll be a fairly clean markets. is that the right to -- is that the right way to go? it feels at the moment we are in

the early stages of what could phase.&a >> i think so. i expect to see more deals. you want to be selective. there is not a lot of competition. for example, david is building scale to be able to better respond to the changing health care landscape with obamacare. they are able to negotiate with distributors to be a bigger company. there are other companies like walsh. astrazeneca, if you look several they have 2017, repealed. a 50% difference. >> do you like the overall market? are you comfortable? >> i am comfortable. i think the recent dislocation

and rotation from sectors means there is growth starting to combine all multiples even though they are going much more quickly. also, inflation is low. you saw the jobs report on friday. so, the low inflation and lower interest rate, the higher. will continue our conversation in a few minutes time. we need to toed ball what is happening on the geopolitical front. what is happening with ukraine. -- we need to talk about what is happening on the geopolitical front. and we will watch the data. and what is happening next in it you ukraine. are we going to see military action? what does moscow do next? we will get back to the story that jon was carrying. out.gal with the bail

a safety net. touchsthe -- and the creen. stay with us. we will have more on that. ♪

>> good morning. 10 minutes after the hour. you are watching "on the move." we are on your tablet and apple

tv and now on amazon fire tv as well. we have it all covered. ukraine's central government continues its offenses against pro-russian forces. it has been a busy weekend in the region. --n chilcote has been walk watching the events. >> plenty of fighting there. the most recent development is ukrainian central government, its forces have overtaken a broadcast tower. is of the local websites reporting that seven were killed in the last 24 hours. what you're seeing right and most important on sunday. we saw pro-russian activist storming police headquarters winning the release, frink six and seven of their own. they were detained in the aftermath of the tragic a fire. 67 of their own. the biggest loss of life since

these events began. where as we saw the violence up talkingmoment, we are about is like odessa that is in the south and getting closer to western europe as well. >> if russia -- is it russian speaking? >> partially. is thing about this city russia has an affiliation. 75 years ago, it was bar of the soviet reunion. it was a resort town. geopolitically for the russians, ukrainians only bid access gateway. if it was to fall under russian control, it was the private ukrainians to the black sea. -- it would deprive the ukrainians to the black sea. if they take odessa, they already have crimea. if they were to intervene, with

the booms on the ground, if they were to intervene, it could effectively build a land bridge eastern maldova and romania. the russian market is down. sanctions were not nearly as bad as the expectation of what they might be. interesting one we are seeing is wheat. it is at a 13 month highs. the reason is over odessa, the gateway to the black sea. 89% of ukrainian wheat goes other cities next to the black sea. there's concern about was what happened to the infrastructure there. ukrainian -- ukraine is the sixth biggest exporter of the week. they have a drought. crimea, traders

are going, what if something happens within the infrastructure there and we lose that supply. month highit's a 13 for weeks. >> we will leave it as air. it will continue to track. weontinuation of a theme, will get back to johan utterman. he is a portfolio manager. joining us from zürich talk about the markets story. this week and this seems to have taken the situation and in the country to a different level. it feels much more like a war story. the market reaction to this is fairly benign at the moment, but nevertheless, if you look at the risk. would you have taken this week as a negative signal? think -- looking at little further out, i am

cautiously optimistic. near-term, tensions in the ukraine as well as deceleration in china are a bit worrisome. germany simply because is a powerhouse and they are getting 1/3 of the oil and gas exports from russia. >> everybody is watching. talk to me about what will happen with the central-bank story. the fact that economies are recovering. thate looking at an ecb has the pressure to do something against the inflation. we have positive news. we stabbed his overall deflation story working its way through europe. what are you expecting this week and how are you building into your portfolio? >> europe is a little bit different from the u.s. and in the u.s., we are seeing

quantitative easing and tapering and that is why it will be finished at the end of the year. janet yellen said it could be a free month gap. dachshund three-month gap. mario draghi has talking about qe potentially. -- looking at bit 10 year yield in the u.s. and the u.s. dollar and the way they are be acting. when the nonfarm payrolls came out on friday, the yield shot up and they you as dollar and then it reversed. that is a little bit surprising. >> how do you think it will result -- resolve itself? expect theely, i 10 year yield to increase and head north. dollar.he u.s. that is important looking at exports in the u.s. and europe,

which once will benefit which once will get hit as a result? >> we will leave it there. thank you for your time. johan utterman joining us. now, let's had further west. portugal is exiting is a three-year bailout pliant -- plan without a credit line. they said they will not need a further help from the bail out lenders. was a very finely balanced -- but it was suspicion they would do it. a clear accident. shot of their confidence. what is remarkable is we have a turnaround of portuguese. it has come down to 3.6%. >> some people put money on. >> a massive amount. oryou look around 18%, two

three years ago, that is a huge turnaround, guy. my question going forward, is it a false sense of security? itt did the pins on -- depends on what is driving this move. you seen the yield come down and come down extensively. the countries' ability to make their debt sustainable or is it overextended search for yield. perhapse possibility that a man working buying a lot of debt. >> it is possible. it tells you the situation we are in. mean?t do you >> you can spin it how you want. knowtically, we do not what conditions would be attached to the credit line. the probability of more reforms, etc., etc. we are heading toward european

parliament treat elections. more people exiting your bailout agreements. conservative he can come out and speak on it. and the dynamics. look at the debt dynamics. to137%.ding they are heading higher. 37%.dp heading to 1 will they hit their targets? the government is confident. they still need to get to 3%. there are big challenges. the government still needs to make cuts. they are not as the once. they are going force. -- they are not out of the woods. >> thank you. we will be back later. siemens is at the heart of a big transaction. this one has nothing to do with

amgen. to ahey might be close deal with a billionaire. that story is next. ♪

>> there is no mystery, the global economy is better than it has been for quite some time. it is moving two percent-three percent and a europe he and -- a

europe is coming out of this recession. modest of growth. japan is moving away from deflation where it was for about 15 years. a pretty optimistic. he is speaking in the last hour from the opening of the forum. we'll have more live interviews. company news. the parent company of china's largest publicly traded steelmaker is looking for control of the australian mining company. up inn holdings teamed .3e 01 $.3 billion -- $1 billion bid. sap has announced the departure of his chief technology officer.

he is stepping down for personal reasons after being in charge of overseeing and a patient just one year ago. sap is overhauling its management. nokia plans to invest $100 million in smart card technology. planning to fit into its map business. right, let's continue on the corporate line. are watchingny we is siemens. the reorganization is leaking out. logistics the sale of and airplane infrastructure unit. talk to me about the strategy. >> it is going to be a big week for cmis because you know on wednesday we have the strategy

review which is coming up. we went here for the first time what they would do in terms of re-organizing siemens. what we hear now is the story that our reporters in munich closer tomens coming selling its airport infrastructure business. this is basically a baggage handling business. 900 milliont earned euros. the margin on it was in the mid-single digits. he wants to left the margin right across siemens' board he could have been lagging in they have been lagging behind general electric. siemens will like to get some of alstons' assets. >> how does it fit into the overall strategy and what is are we expecting from siemens? >> the overall strategy is to

lift the margin. the markets seem to have had, i should say confidence that siemens will be up to do something like that. if you look at the share prices, up 17%. it has been shaky so far. a lot of people are folks on what will go on at the meeting on wednesday. we will be speed to jerry kaiser after the meeting. -- we will be speaking to jerry kaiser at the meeting. >> the weekend brings easter your -- eastern ukraine the worst of violence and has seen. regionntrol over the contains to flip. at china's slowing down, manufacturing contractor for the door -- for the fourth straight month. will party leaders pulled the trigger on a new stimulus? that is a key store for the global economy.

at the moment, they do not want to do that and want to manage the slow down. and youon the move," can follow me on twitter. let's take a short break. see you after that. ♪

>> good morning. welcome back. you are watching "on the move." off today anda is joining the holiday here in the u k into the trading day, let's see how things are shaping gulf. remember london's out today. it is a holiday. is a big chunk of change. it will be a quiet today for the other markets. cac down. i am looking at my average volume on my terminal.

the ftse is fractionally up. that is where we turned the story. stick around, there are interesting stock stores out there. let's touch on them with jon ferro. >> if you look at the dax in germany, it is down about 0.1%. what we are seeing. the big german exporters. the china manufacturing data looked pathetic. not good for china and anybody exposed to it. elsewhere, we look at siemens down by 0.2%. they are said to sell their logistics and airport infrastructure business. steps down.hief he was put in charge of innovation. --l mcdermott take the road

role of ceo later this month. >> thank you. jon ferro. some of the other headlines. chinese manufacturing as jon anted at its declining for fourth month according to hsbc. it missed estimates. stocks fell on concern that china's economic is gradually declining. osting shinzo abe today. the latest leg of the tour. it will focus on free trade. they are trying to forge a free-trade deal with the u.k. talking mounting tensions, ukraine is seeking the separatist in the heartland. the and.

-- the interior ministry said they have regained control. violence has spread to the black sea gateway. let's stay with that story. straight tocow as the news reporter who joins us from the phone. henry, the actions of this aekend takes us forward quite long way. we are seeing open conflicts in the countryparts in including odessa which is significant. if we are looking for pretext to our russian reaction, does it go far enough? headinginly, we are into that direction. the spokesperson for blood where putin issued a strongly worded statement which said they have blood on their hands and the western countries, the u.s. and the european union states that support the ukrainian government

by extension are responsible for are takingthat place. he was referring to an incident that took place on friday were more than 40 pro-russian activism were burned alive in a trade union building and odessa. he said putin was considering the situation and what he will thousands ofare calls coming in from residents of the region asking for russian help. definitely, the risk is rising. .> one and seeing do one thing is the diplomatic story. -- one thing is the diplomatic story. in terms of where you put it and focus on how significant is the release? >> it is the first achievement any diplomacy. there was an agreement and a the europeann

union, ukraine, russia, and the united states which was supposedly escalated the conflict but it was never implemented. there are actions underway to revive it. angela merkel held a conversation with putin over the weekend. they agreed they would try to revive the plan. it is very difficult to know if it will be successful. >> what is the since and moscow? what is public opinion looking like? moscow?is the sense in >> supportive of putin. crimea toans consider be part of russia historically. in the east, they feel the russian speakers are being a north. an invasion, if he came down toward, would be a different story especially if you have

major casualties. the russian leaders will waive that very carefully. they have met this they could use including sending agents. thef you look at geographical story here, the fact we are looking at odessa which would effectively give , access of the black sea, how significant is that? plan orpart of the game more scripted? they do planthink to escalate the situation and to make the unrest spread to the south as well. there areppening is presidential elections scheduled for may 25 into ukraine and russia has caused for the -- if the arrest continues especially in the south and east, they will be up

to say that those elections are not legitimate because they were not able to hold them in the region. they game plan for russia is to make sure what ever government is elected is to say it is not legitimate. >> henry meyer joining us on the phone. what happens next? a new bloomberg reports gives us insight of how vocal a tax haven is. us now with the stores are jesse, russia's businessmen and women are making extensive use of foreign subsidies in places like the netherlands, luxembourg. until we start talking about sanctions working effectively, visibly these territorial areas that will be difficult to get sanctions fully effective. right. that is one the points we made in the story today.

a good example is one of the sorry, itanies, i am is a big oil trading company that was founded and until recently, co-owned by mr. tec henko. the u.s. said that mr. putin owns a stake. r, was largelynvo a dutch company. like a lot of other big companies has moved most of his assets and to the netherlands both to protect from the potentially capricious nature of to avoid taxes. this company is not alone. a lot of other companies have tens of billions of dollars in assets in subsisted -- in subsidiaries and the european andn and like netherlands

luxembourg that is part of nato. it erased the interesting question of, things they did to keep their assets safe to move out of russia. that could be making them of honorable if the u.s. -- vulne rable if the u.s. continues the pressure. there any -- i read your story this morning. is there any sense of the story will change? the pressure put on these countries to make significant inroads and thus story in your alluded to. a big leape quite forward and a lot of pressure from the whole of europe to make it happen. >> right. presume the pressure has to come from the u.s. or germany. there's a lot to say hair. a lodge of these countries have ambiguous feelings about this. the u.k. is a good example.

amount of russian money invested into london real estate and stock and europe is getting oil and gas from russian companies. couldf taking sanctions have a real ramifications of what happens in these countries in terms of the everyday lives people living there. i think the individual countries are very unlikely to impose their own sanctions, their own political freezes against these companies. thepoint is that if pressure does continue from the as. and from europe, there is real opportunity here that would not have existed otherwise if these were russian companies. the bottom line is that these comments are not russian ammann they are dutch companies, luxembourg companies. that could provide an opportunity. >> we will leave it there. a great story. thank you for joining us from rome.

political fights in the u.k. ed milleband. details are coming up next. ♪

>> good morning, everybody. you are watching "on the move." let's turn to restore he would've been watching for the last few days. a deal that could turn into one the biggest takeovers and u.k. history and is a hot, political story in britain. astrazeneca rejected pfizer's takeover bid. it did so on friday. politicians are calling this story overriding national interest. that is ed miliband. let's figure out how it will develop from here on out. i am joined by a senior pharmaceutical analyst. nice to see you. let's do the mathematics first and then we will talk about the politics. the mathematics of the story is going to get a little pricier for pfizer.

do the astor is worth more? when do you expect to see it if it were to develop? pfizer is mean, forced to put the offer and deftly because astrazeneca rejected within three hours of receiving a letter. pfizer had the choice of pounds per share of 700 billion pounds. >> why the hostile bid is unlikely? >> pfizer, the reason the interest in this acquisition is benefitsignificant tax and increase tax rates from

27.4% to less than 20% and they commit a lot of savings of $2 billion. and they would get access to an exciting, although risky pipeline. >> let's talk about the tax story. for theake it easier politicians and the u.k. to negotiate something, the protection of jobs, etc. in britain? driven not has been by industrial logic but by fiscal logic. it does a make it easier or more difficult? -- and does it make it easier or more difficult? >> i would say more difficult. it is very, very difficult because of all editions do not want to interfere with the company. i obviously, they needed to get lots of jobs and the u.k. we know pfizer three years back

close one of their facilities in the u.k. and now they're coming back saying they will keep at in the u.k.f r&d obviously, what happened to three years back, people remain very cautious. >> your expectations is what? it continues and we see a deal being done? it is very difficult. what we can say is astra shares drop by 2% on the announcement that the board rejected the bid. the markets do not think a higher offer will be made by pfizer. very,, i would say, it is very difficult to say at this stage. they are working very hard on this one. thank you very much.

joining us from geneva. se" is coming up next. we will have a great show. we will not have francine lacqua, but we will have a good show. the flare up in the ukraine. fresh sanctions to be coming up. economic guy will join us. will join us from barcelona for the push into electric taxis. they are doing it in spain. we will talk twitter. the lockout expires today. investors, long-time investors can start to sell the stock. how they will handle the story? this is something that should be priced in. it be a chance for a bubble

story? it'll be a great couple of hours. make sure you stay tuned. in the meantime, it's a great event. it happens every year. washington get together to celebrate itself. it is the white house correspondents' dinner. our formal white house correspondent is none other than hans nichols. he has been to a few. the president was funny, yeah? >> look, he is always funny in parts because he does not write his own jokes. he has professional joke writers. folks from hollywood line up for a chance to write his jokes. he rejects some of them. listen to a few that made it through. here's a fun one. >> of course, we rolled out healthcare.gov. that could have gone better. [laughter]

in 2008, my slogan was, yes, we can. was ctrl, allogan t, delete. >> he recycled won a joke. john boehner who is the speaker of the house has a bit of a tan. and always. there's always a question about his pigmentation. prison obama has joked about him being a person of color -- and president obama has joked about him being a person of color. but the house republicans give john boehner a harder time than me. it means that orange is the new black. phone parto say the is getting together with the speech writers or the next couple of days when everybody has sobered up and figure out which jokes were too edgy and stop -- too edgy.

>> hans, thank you. precisely, that is for the books. he is writing a book right now. ch that coulde te make your touchscreen redundant. it is called touch and grab. it could give you control of your gadget with the click of your finger. we will see you in a couple of minutes. ♪

>> good morning. you are watching "on the move." i am guy johnson. touchscreens. we all have them. they are on tablets and on the phone. what we need now is the right technology to make you look forward rather than back. editordle east only -- iotve it shows up -- ell shows of of the story that can revolutionize. it is the smart gadget. touch is a little inconvenient. i am on my way. i will be about 10 minutes. just as well. it is becoming necessary. the light.rn on

quick say hello to point to grab. m. we are using the algorith just a simple 2-d camera. it analyzes the body and the movement and we will make changes. if you put your he finger on, co -- volume. the you can go to the next channel you want to watch. the volume. you can zoom in or out. signed up grab samsung and lenovo. it is already profitable. it's ambitious go beyond the living room. >> any power source. be added to it and you control it in several ways. you can turn it on and off.

you could change the sound level. >> he is getting to grips with this new technology. i have fruit all over my hands. i do not want to touch my touchscreen. if i am watching a recipe, i can scroll down. i cannot be bothered to press. you point to it. it will bring you the drink >> if you do not have anybody to take a picture of the special moment, selfies will never be the same again. elliott gotkine, israel. ff and it continues because you need to stay with bloomberg television. next.ulse" is

we will be talking about chief european economist talking about the impact and twitter. state-owned for the next couple of hours. i will see you after the short break. ♪ . .

kiev loses >> control as fears grow of another russian military intervention. a clean break. portugal announces its exit from a three-year they'll out program. program.t and the u.k. government comes under pressure to block pfizer's astrazeneca bid. good morning. you are watching "the pulse." we are