>> kiev loses control. fighting grows across the ukraine. fears of another russian military intervention. a clean break. announces a three-year bailout program without a safety net. good morning to our viewers in europe. good evening to our viewers in asia and a very warm welcome to those just waking up in the

united states. my colleague is off today. she will be back tomorrow. we're live from bloomberg's european headquarters right here in london. let's start with the main story of the day. the conflict in the ukraine is escalating. violence is spreading across the country. president obama and german chancellor angela merkel warned that they're ready to impose more measures against russia. isthe phone from moscow bloomberg news reporter henry meyer. walk us to the events and let us know what is happening. >> in the last hour, the russian news service, interfax, has reported that ukraine's essential government has resumed military operations in the city vyansk. that could provoke a russian response. they have talked before about how they're concerned about the ukraine's military operations in the east of the country. in addition to that, we have reports of fighting in

easternmost part of the country. perhapsically and geographically, most importantly, we have unrest in the city of odessa, which is in the south of the country. stormed an activists police station late yesterday, freeing 67 of their colleagues effectively who had been detained on friday in the s we sawh of the clashe in the city and the tragic fire. lots going on on the ground within ukraine itself. also, within the last hour we have learned that the russian government has given the russian president a report on human rights abuses, as they put it, in ukraine itself very the question everyone asks is if vladimir putin is presenting himself as a guardian of the rights of ethnic russians throughout the world, and certainly in the former soviet union. this is the prelude to something more. >> let's get a sense of that

very henry, the report intended to provide real facts and events in ukraine. this is an escalation in the language? is this a prelude we have been looking for? >> it is very hard to say at this stage. the russians have responded very strongly to the events in odessa. the spokesman for president vladimir putin over the weekend described what happened as a crime, said the authorities in kiev had blood on their hands. they also pointed the finger at western countries, which racked -- which backed the government in ukraine. the potential for military intervention, the russians have always kept that option open. they said if they need to take action to protect russian speakers, they will do so. however, and must be said that this is a strategy that would be fraught with risk, both

militarily and also in terms of the economic impact of potential .eapons sanctions >> russia has made it clear that they do not want elections to take place on the 25th. is the situation on the ground beginning to move towards them. i.e, it is hard to conduct elections with the pictures we're seeing on a screen is now? >> certainly, the russian strategy is to achieve an election which is not seen as legitimate in those regions. the ukrainian authorities have said themselves it will be very difficult to hold an election in all ukrainian regions. so you end up with results with a government that is recognized only by the western countries and by the western and central part of ukraine. the crisis will only deepen.

>> we will leave it there. thank you very much, indeed. ryan chilcote joining me in the studio. let's go to portugal now. the nation will exit its three-year bailout program without a credit line. portugal will not need further help from its bailout lenders. ferro joins us now the details. >> it is just three years after that bailout. line,caution or credit clearly confidence in portugal's own abilities. are is where portuguese when costs are on a 10 year yield right now. 3.6%. this is a level we have not seen in some eight years. that is some turnaround. the question i've been asking the confidence justified? what is the cause of these yields being down here? it is the bets on the europe

turnaround? or is it the search for yields that have come to somewhat overextended levels. what does that mean as we go forward? is it a false sense of security? politics, it me for jon? >> is good news. we can all celebrate and pop the champagne, can't we? the fiscally conservative germans can say this is good. to see the problem? look at the debt challenges for the likes of portugal. borrowing costs at an eight year low. they still have a gross debt of 214 billion euros. the gdp ratio is heading towards a hundred 30%. deficit target of four percent of gdp. that means we have to carry on

this year and get down to three percent the year after. that means there are plenty of challenges ahead no matter what happens in the european debt markets, guide. challenges for the portuguese economy. >> inflationary forces are only going to make it harder. it will be interesting to see with the ecb start protections look like. the british opposition leader says that david cameron is acting inappropriately and promoting the pfizer astrazeneca bid. where are we? millilband has made a strong charge saying that david cameron is acting as a cheerleader for this deal. what we may see with this deal is testing the proposition of whether or not one is ceo writes

a letter pre-deal, pre-consummation of a deal, saying that he will keep jobs in the country, whether or not it is believable. that is exactly what you and reed has done. take a look at the letter, at least some of the points he is put out in the letter. 20% of r&d in the u.k.. it is really a question of whether or not the public believes that this deal is in their interest. is trying toiband agitate. first they have to agree on a price. that has not happened. >> the politics are certainly going to be there. hands, thank you very much, indeed. our international correspondent. coming up, president obama and

chancellor merkel sent a fresh warning. will sanctions be enough to end this crisis in ukraine? we'll talk about that story when we come back.

>> welcome back. you are watching "the pulse. co south africans go to the polls this week. the anc is expected to cruise to

victory, but how big will be the read.ty? just had a the pmi data that is just been released is weaker than anticipated. was 50.3. what has the reaction been in the rant. the dollar is gaining traction. the rant is losing ground. we will have much more coverage of that poll as we head through to wednesday. the missionary as well what is happening with the stock rates. as a result of which, you can has beenorwegian krone making gains this morning. let's move back to the ukraine. conflict significantly escalating over the weekend.

u.s. and european leaders have set a may 25 trigger for possible economic sanctions. ed is of course the polling day for ukraine. let's find out what we need to watch as we worked our way through this week. kerry smith is executive director of the american academy in berlin. from an academic one of you, what is the read right now. it colleaguesch and look for parallels elsewhere, we see the situation evolving quite significantly. what is a take away this monday morning? >> is very explosive. the ago thes -- a few weeks sudden and unexpected outbreak of world war i, where four weeks beforehand nobody had an inkling of what was going to happen, but likets and even people myself who lived here for over two decades and observed the close, it ukraine up was obvious that this was an

explosive situation and it is not getting under control. parallels? the best history has a tendency to repeat itself. is it the proxy conflict? is there something different? what resumption of you this situation through? prism must i view this situation through? there are many former soldiers, many russian speaking people in the eastern part of ukraine.

there is nothing to do so they are getting their arms, they are perhaps being armed, they're getting their own arms and they are out of control. the germans think world war i is the analogy. aboutans have thought hitler and world war ii. is definitely more like world war i. it is not that far away. poland.reatening this could spill over. >> what i hear the americans talking about from within the beltway in d.c., they're talking not about world war ii, they're talking about the 50's and 60's. there talking about containment and rollback. there talking about traditional cold war terminology. that is what they think we are referring to at the moment. is world war i/world war ii pushing it quite far? or is

there something more about and the relationship between empires in europe and russia, between america and russia and the changing nature of global power? , those areell definitely important points. as far as containment is concerned, the germans and europeans are loath to adopt these analogies as too simplistic. they don't want to return, certainly not in berlin, to the cold war, where this is the front lines, the fault line between east and west. it is a question of balance of power. the soviet union, and now russia , when president obama referred power, heas a midsize motivated president vladimir

putin because he wants to be a global power and assert his power. that is why his behaviors so hard to predict. he is not acting according to immediate economic interests. that sanctions , he'swill affect him acting according to his global positioning. >> thank you very much, indeed. the executive director director of the american academy in berlin. let's bring you up to speed and company news. nokia is planning to invest $100 areion in companies that involved in automotive technology. -- in mobile technology. leader of the opposition

says the takeover may not be in the national interest. otherliband says no company will approve of the merger. its bid forsweeten astrazeneca. astra ejected the bid on friday. chinese yuan retailer wants to give a group of insiders exclusive rights to nominate a majority of the board. alibaba plans to give all shares equal weight as a result. we will take a break. see you in a moment. ♪

>> welcome back. you are watching "the pulse. go space innovation. elon musk has been leaving a push to reach space. we got a look at in nasa competition deciding who will build america's next shuttle. time we were racing into space, it was about national pride. >> the eagle has landed. >> this time, its about money. the international space station is a near zero gravity laboratory dedicated to scientific research.

the end of nasa's shuttle program with only one way to get russia. >> is embarrassing that the has left these rights to russia. nasa won't be making it, private companies will. >> we are building this in anticipation of a market emerging. >> nasa is hosting a competition for private enterprise to build a spacecraft to show humans back and forth to low earth orbit. that contract will be worth aliens. >> i think commercial space today is much like commercial aviation was back in the late 20's and early. it is being enabled by the government, but eventually is off. to take a ver

>> the stakes are high. all multibillion-dollar aerospace companies, each determined to win the nasa contract in order to become the leader in the emerging space industry. nasa has been outsourcing work to private companies since the start of the space program, but with this new contract, they become the client instead of the boss. private enterprise assuming all of the physical and financial risk. >> every spacecraft that has been built by commercial companies. this is another way of procuring that spacecraft. i'm convinced that we will have a reliable spacecraft for the time comes to assign that. >> the more we test results and more push exploration, smarter and better we will be. it is in our dna to explore. we need to continue to go beyond what we currently know.

such cool stuff, such amazing technology. on wednesday, please do not mix are bloomberg special, the next space race. this is cool stuff. make sure you watch that. now, let's move on. we're going to talk about a bloomberg exclusive. isgermany, more news emerging about siemens' reorganization. we are breaking much of that news. the start what was happening next. parity with getting closer to hearing about a deal finalizing .he sale some big names involved in this deal. one of them is david tweed. how thislk to us about fits into siemens strategy. >> a context of all of this is that the new chief executive wants to lift margins at siemens

because siemens has been lagging , general electric has been lagging, abb. they want to get rid of the companies which are not performing so well, get rid of those units that are not performing so well, bring onboard units that are performing better. the growth that story about siemens wanting to buy the wind turbine from rolls-royce last week. good margins there. now, we're hearing the story that might be decided for good by tomorrow, the siemens wants to sell its airport infrastructure, basically baggage handling business very his business or 900 million last year, its margins in the single digits. siemens wants to move it on. >> is amazing when you do sit and wait for your bags to arrive. now we're waiting, getting the same thing in germany from merkel, yeah? he wants to see mrs.

merkel putting her full political weight behind the bid it siemens for alstom. seems he is very worried about general electric's bid, because i would really make general electric much more competitive in one of siemens strongest industries, and is energy and energy power production. he does want to get angela merkel onside heard the problem is she is a little annoyed about this trip he made to russia. yeah, and she not keeping him waiting. david, thank you very much. we'll will hear much more news out this week. david will be covering it all this week. we will be building up to that strategy announcement. we will work our way through that story. how --going to show you

is a great way of running an office heard will find out about building that when we come back. ♪

>> good morning, everybody. welcome back. you're watching "the pulse. " let's talk about the bloomberg top headlines. ukraine is seeking to dislodge separatists in its eastern industrial heartland with more military action. the interior ministry says the government has regained control of a television tower. the violence has spread to the black seagate wake.

gateway. hsbc market report on china. the french president, francois hollande, is hosting japan's prime minister in paris as we speak. the latest leg of his six nation tour of europe focuses on a free-trade packet with the eu. china will certainly be on the agenda, as well. washington got together to celebrate itself over the weekend. it does that so well. it is the annual white house correspondents association dinner. hans nichols has been to a few of these things. we explained to us how this works and what we need to know about it? guy, it is not that hot

ticket. the after parties are about the only thing -- still nothing more humiliating than begging for ticket is talking about it on tv in europe. we will come -- we will could take the president's comedic chops. we will get what he has to say about his own mediocre year. >> of course, we rolled out healthcare.gov. that could have gone better. [laughter] in 2008, my slogan was yes we can. in 2013 my slogan was control alt delete. clean, thecome president does have some help writing those jokes. he as a speechwriter and they have outside joke writers who usually do it for free. everyone wants to say i wrote it showed -- i wrote a joke for

president obama. >> we need to be trying way harder over here to make your life unpleasant. we will talk about that later. let's talk about the future later. the stock at the dutch stock what the past right now. hotstate is not that ticket. you're not meant to impress the ladies with it. who do you take to dinner. >> a good point. the smart white house officials always demand to take their wife. you know it is not their first rodeo if the minute you ask them they say can i get plus one, ecause the wives and husbands sometimes want to meet all the celebrities. there are some good jokes as well. it is most fun to sit with a speechwriter because you can deconstruct the jokes in real-time. obama usually make fun of john boehner and himself a little bit. listen to this combination of race and john boehner scholar, which is a little 10. >> these days that house

republicans actually give john boehner harder time than they give me. which means orange really is the new black. >> guy, you come to d.c. in elementary get the right branches and pre-parties and after parties. -- onrade on an access that accent of years and you'll be fine. is working for you in reverse in berlin. those branches are nothing to sniff at. thanks, buddy. we'll catch up later. we talk a lot more about hands next few months. 45 minutes ago until surveillance. tom keene, as ever, at the helm of that show. he joins us for preview. ss, the situation ukraine related significantly over the weekend. >> you really see that deterioration. just as importantly, the markets react. you see it in the yen and in the

10 year yield on the u.s. treasury. we speak with richard falkenrath on the top of both hours to give that distinction you're been talking about to the eastern ukraine and now southwestern ukraine in odessa. then we will move on to the news of the day. there's a great phrase in american market, sell in may and go away. going to go to london, guy, but in the u.s. they go way for the whole summer. should you go with the whole summer? we will talk to tobias l levkovich about that. our children will join us on regulations also. bart chilton will join us as we look at some of the challenges in regulation in the markets. >> london is on holiday today, so this is probably a little hard to spend. we are british, we don't go way to go -- for the whole of may.

we leave that to the french. >> i realize it is a different dynamic in europe. here, it is a cliche. if he sold in may, that was a dumb decision. we will talk to citigroup about that. >> we are all waiting for st. ledger day. more.rro has >> we are on lows of the day. we have the dax down 1.3%. spain and italy training low as well. london is closed. what isg reflection of going on in ukraine? may be. we have a little bit of risk aversion. come to the 48.1 in the hsbc

reading. month.h straight if you look at data, it has been trending lower ever since october. is ayou're also seeing lower dollar yen, money going into the japanese yen and the japanese currency by about a quarter of one percent. the dollar's getting weaker and the japanese yen getting a little stronger. it has been a bad day for data. the south african rand is trading lower. also pretty weak. weak.as been pretty industrial production data out of sweden, have a look at that. absolutely terrible. what you're seeing is a .eflection of that the swedish currency getting a little bit weaker. sweden is now in an inflationary environment. i will not have the risk. the cycle be under more pressure to do more. think about paul krugman referring to swedish bankers as

saito monetarists. >> you just need to get these things right. thank you very much, indeed. jonathan ferro is almost getting it right. i just like the words. the snow may be melting in utah, thishat has not stopped skiing yet. some pretty extreme mountain stunts. even for extreme guys, that is quite an extreme jump. quite a view, though. red bulls free runners found a stunning backdrop. they jumped off of the ancient clay ruins.

you have to be so fit. we'll take a break and when we come back, we will talk about twitter. twitter's lockup is expiring. we will talk about what that tells us about this business when the lockup expires. see you in a moment. ♪

>> good morning, folks. welcome back. we're live from london on bloomberg television. buildings here at

bloomberg -- we have an open floor thing that happens here. basically, it is designed to improve communication between employees. it works pretty well. one ad agency has taken things a step further by seizing every staff member -- by seating every staff member at the table. this is a mega desk. when i was growing up, i was thought that a main desk would be the character of an office. feel had a real community like joining a club. wouldn't it be fun if we could all say that one desk. as he thought about what this should be, we wanted the desk to be different in character.

only after that you realize that the table is climbing up and down. it curves and moves in different ways in different heights all the way through the space. >> the affordable way of doing this was to use plywood. cover that in one liquid process. on isace that you work very smooth. the underside is how you understand. >> you create a lot of informal gathering spaces for people. the structure allows us to have little areas we can put books. it really domesticates these spaces. say that was inherent risk because it is never been done before. we had to go on a journey and hope that it worked, but the overall cost equation was cheaper than a standard office.

solde desks that are already are more than paper. who needs a desk? no need to desk. you need a place to put things on. i think it is time to utilize those freedoms rather than resist them. >> really cool. it looks like a big skateboard park, as well. we will carry on talking tech of a different kind now. teixeira lockout expands later. a -- an expired share lockout expands later. us now from joins new york. he is president and founder of the tech consulting firm half of vision. good morning, to you.

how much should i read into this twitter story. this is something that we have all seen coming. we have known this date is on the diary. as a result of which, maybe we are hyping it up it too much. >> a think you are. most insiders have already factored in the stock rises and factored in the possible cell. there'll always be something sold when the lockup ends. i don't think it is going to be dramatic. >> these guys have a right to sell. we should be able to differentiate between these guys getting paid and their long-term vision for the company. is that the right way of looking at it? is guys have been around for a long time and they have invested a lot of time, money and effort into this business. never right to take some of it back. >> you're right. i've been lockup situations myself. the reason you invested in the first place is because you believed in the product. i think the people behind twitter really believe in it. it is an interesting service.

it has a few challenges. i think some of the people on the outside may be a bit worried. the insiders are confident that this is a long-term play. spreaddo think that exists between the outsiders and insiders? >> the growth among twitter subscribers has slowed. twitter is actually hard to use. we are seeing all the introduction of photos, instagram, for example, even google glass, which i'm wearing here, allows you very easily to send a message. it is not easy to take a picture and post that. it is easy to take a picture then compose a hundred 40 characters. not everyone is that good at sending something in 140 characters really meaningful. there are a lot of people on twitter. advertising campaigns are using a very effectively like the snickers campaign. getting celebrities to say something out of character. that was brilliant. it are a number of different ways that twitter is going to be used. it is only been public for not a

very long. of time. i think insiders will stay with it. >> i am really curious about what you just said. twitter is actually quite hard to use. if you want to sound smart, you have to be smart. for some peoples minds, it is quite elitist. is that a danger? taking a picture is relatively straightforward. god have phones and tablets i can do that. increasingly elitist. had we work around that one? >> that is the worry. if i were looking at it, that would be my main concern, as well. twitter has started introducing photos and they have added in the capability of doing something very quickly. for google glass, for example, i can actually dictate something and create a tweet that way. you're absolutely right. it is somewhat elitist. i listen to twitter more than i actually use it. i turn it on if i want to see the pulse of the world.

if there's an uprising, you can look at twitter and see what is happening. it is not that many people tweeting at the end of the day. it is mostly people listening. what we should be worried about act is justnly tweeting under 40 characters, then i think you have reason to be concerned. i don't think that is where they're going. i think they understand this and a very smart people. i think they're going to move forward and at other capabilities, whether it is google glass, photos, audio. >> greg, we have to wrap it up. thank you very much indeed. we will take a break and see you in a couple of minutes. ♪

>> welcome back. you're live on bloomberg television. streaming on your tablet and we are of course on bloomberg.com. now, a tiny french invention is at the pariszz fare right now. the rockers peter turns any surface into a loudspeaker. just howard reports. howard reports. >> you can turn any surface into a real speaker. umbrellas, even trash

cans. anything you want. the speaker uses a vibration system. inspired by the same technology that submarines used to communicate, and thanks to a bluetooth connection, you can control it with your smart phone. euros, theice at 35 company has artie sold 50,000 them, mostly in france. they want to start exporting as soon as this year. >> now we want to go to the united states and canada. are selling accessories, as well. this band lets you wear it on your head. >> what is really better about this is that you can actually hear what is happening outside. >> there are more accessories on the way. the sound will just depend on how creative you are.

>> let's move from speakers to elections. i'm not sure how i will make that segue. let's talk about south africa. they're going to go to the polls this week. the anc is expected to maintain its grip on power. we wait and watch to see how big the majority is. first of all, we have some weaker pmi data coming out. we have seen that. you can see this bike tire and the dollar versus the rant heard we have seen some unemployment data coming out. the unemployment rate has climbed to 25.2%. that is obviously a big factor in this upcoming election. we have fairly negative news coming up from the platinum strike as well. the rant has been doing fairly well. we talked about the -- fairly earlier. rate we have had that hike, we have seen the rant

doing fairly well. we're going to watch what the -- onis coming out of bloomberg. the economy is weakening, and that is something we need to think about in the context of the big strikes we are seeing surrounding the mining or, as well. we will do that on tuesday and wednesday this week here on bloomberg television. but also are watching for the rest of today? it is still just monday. ryan chilcote is joining me here in the studio and from berlin we have david tweed. >> president putin is just to read -- received a report from london talking about human rights abuses in ukraine over the last several months. we are no the answer. it is definitely something worth watching over the coming hours. we just got that report an hour ago. get the thing i'm going to watch is may the ninth. as of friday. that is victory day. russian government believes

there are fascist elements in the ukrainian government. way, victory day is an opportunity for the russian government to celebrate a struggle that obviously happened during world war ii. today, in this crisis with ukraine, to continue the fight veryi think it will be picturesque for moscow. they will have the tags on red square, but also watch for a lot of volatility in easternmost parts of the country and in the south if we don't see that .efore friday we are french president and the japanese prime minister meeting. they're going to talk about china and free trade. what is happening with rush as well. >>t you see on the agenda thing i'm looking out for his and unmanned submarine. defense is pretty high on abbe's agenda. the japanese

government has allowed defense contractors in japan to actually export certain defense products. the idea behind it is so that they can get a hold of advanced technology and boost their defense capabilities. this is very important to guys abbe is worried about deflect -- about flexing his muscles that is going on with china. >> as you're been speaking, we have taken ourselves to the le is a palace were real looking at ysees palace. they're taking questions over the next few minutes. we have a short statement first evolved from both gentlemen, and then we will be hearing exactly what they have to say. submarine drones? yes i want to hear more about that. before we wrap things up, we have pfizer numbers of little bit later.

>> we will report before the market closes. >> david, ryan, thank you very much indeed. that is it for the pulse. surveillance is up next. ♪

>> this is "bloomberg surveillance." >> ukraine battles russian rebels on two fronts. trying to change the calculus.

markets change -- u.s. treasuries are bid. aba hoping limited will show its cards. it is monday, may 5. joining me, scarlet fu and adam johnson. let's get right to the morning brief. >> overnight, signs of global slowing. china's factories slowed for the fourth month in a row. was adjusted 0.8%. our inflation is about 1 %. those are signs of slowing. the market of u.s. services -- we will also have a nonmanufacturing composite. earnings before the