have not pushed through with any conviction. a look at the data. u.s. retail sales down. data picks up today. hans following pfizer and after zeneca ahead of key hearings today. more on that. >> we like the smell of a parliamentary hearing first thing in the morning. to convincebe able the public and this parliament that it is about jobs and research, not just taxes? in a few minutes, we have an important interview with a labor and the -- mp. we will get a sense on just how hostile it may be. and she hasis here her eye on the airline industry. easyjet reported earlier. rex it did. bang in line with expectations is not good enough to send the share price higher. they said it could potentially decrease a little bit. once again, read tax is better that -- pretax is better than

expected. they are becoming more profitable. they are taking on amazing technological leaps and bounds. drones, 3-d glasses, just to make sure they can analyze any disruptions to the airplane, any concerns, inspect planes for damage faster. scrapping paper manuals, they are set to save half a billion pounds per year. eight, cut a kilo of w 20,000 pounds per year in terms of fuel. amazing. when they start worrying about what we way, i am going to be concerned. >> david, you are watching airbus's morning. this morning. >> the earnings fell, but they still beat the expectations of analysts and maintained their guidance for the year. that is important. they are on track to deliver their first a350 two qatar

airlines by the end of the year. also important, along with the restructuring, which is bumbling along. what else are you watching today? >> twitter for laois and. -- twitter-flation. decade highs on the ftse. up not quite over one percent right now. down .5%.ib why do i care about swedish inflation? everybody is talking about swedish deflation. the cbi reading comes out in 30 minutes. what are we going to get from that? are we going to get a snapback? that is what many people are expecting. elsewhere, the data continues to pick up. u.s. retail sales from may. we are looking for .4% growth. here is sterling.

it's talk about what the bank of england mike duke. ubs says the bank of england, tomorrow, in the inflation report, may feel a stronger need not to accelerate the policy difference between the south and the ecb. what does this mean for the fx market? they are looking for corrections here to 1.60. that would be quite a move. >> joining us now for more perspective is richard jeffrey, casanove capital management. talking about the forecast that sterling will correct in the next three month. do you share that view or not? >> the only take on currencies is that if people knew where they are going to go, they would not have to work. they are incredibly difficult to predict, the wave of transactions and influences is so complex that it is hard enough to understand what they have done in retrospect, let alone predicting them.

i think you take most forecasts with a grain of salt, i hate to see it. tois the stock market easier predict? record highs for the dow and s&p. sinceoxx 600 the highest 2008. can we move up another gear or not? >> i think we understand what has been driving stock markets. that is a combination of strong liquidity in markets -- of course, that is still coming in through quantitative easing. although the pace is being slowed down. air is still quantitative easing coming through in the united states. in the u.k., quantitative easing has taken place. the liquidity is not being taken out. it is still there. markets are hoping that the ecb will move down the same track. that is a factor. of course, the world economy is beginning to improve, normalizing, particularly in the west, is also driving markets. what has not been driving markets is profits growth.

rough its growth has been disappointing. even in the united states, if the market relied on profits growth, it would not be at these levels. we have to adjust. >> at what juncture do earnings start to deliver, particularly in europe? >> the important thing is that we see earnings growth this year. the previous two years, people have started with high expectations and those expectations have weathered and we have ended up with either no growth or a decline. we have got to see validation of what stock markets have done. earnings growth this year. we are beginning to see that. expectations coming down slightly. they are not falling as fast as they were last year or the year before. on that basis, i think there is fundamental support for equity markets. i am not looking for the sorts of returns out of markets that we made last year. we may get to all-time highs in the u.k., but that still will not reflect gains of 20% that we

have had over the last couple of years. >> what is the view from your side of the table on value versus growth? there is a big debate playing out out there. >> there is. there is always a debate. firstly, i think that stock selection is becoming more important now. it was a sector-driven market if you look at it two or three years ago. i think it is now more down to stock selection. within that, i think we are looking for a later cycle type activity to come through and drive markets. one of the things that is important in economics terms for the european economy and the u.s. economy is that we move into the next phase of a recovery. more driven by capital spending than the recent past. of course, that has implications for stock markets because it will be companies that feed that investment cycle that will come to the forefront. >> we want going to come back to you in just a few seconds. here is what else is coming up

today. u.k. lawmakers get set to grill pfizer and astrazeneca over jobs ahead of the megamerger. socgen sets the bar high. the bank targets high profits held by lending in russia and africa. the chief executive spoke to us here on bloomberg and easyjet thanks on business flyers. look at the latest numbers this hour. we are seven minutes into the tuesday session. u.k. stocks, french stocks, german stocks have all opened higher. stay with us. ♪

>> i am mark barton in london. streamingn the move," online, on your phone, on apple

tv and on the new apple fire tv as well. airbus reported a drop in first-quarter earnings. shares are lower. it delivered fewer commercial aircraft. fell to before interest 700 million euros. return on sales growth for this year. earnings were last year were restated to reflect account changes. top storys on our today, pfizer and astrazeneca cheese facing u.k. lawmakers to explain the future of jobs in britain. it is a controversy i'm next guest knows all about, having dealt with job losses in the wake of the astra and zeneca mergers 15 years ago. joining us to discuss this is sweden's finance minister. good morning, sir. thank you for joining us. >> good morning, good morning. for or against this deal?

>> well, we are quite for it in sweden. takeover ofed the the pharmacy 15 years ago and that was the operations in sweden very heavily over the couple of years. the track record of pfizer when it comes to jobs is very clear. they have taken over three or four different companies globally. we cannot see the real business logic here, but it is clear that pfizer sees some clear tax benefits from this deal. mergerworried that this is driven more by tax logic than by business logic and that normally means that you would have great problems with the merger. >> does that mean that you have not received any assurances from pfizer to protect research jobs in sweden? >> well, we have not been approached by pfizer with

commitments to their swedish operations. i remain skeptical that they would give us assurances. they gave the impression, when they took over pharmacy a -- pharmacia, that they had a commitment to the industry. if you do not have a very sound business logic, i would assume -- thisy would focus on is a u.s. company with headquarters in the u.s. it would be u.s.-centered. sweden would be downscaled in the long run. i think you have two alternatives. to ride with the astrazeneca company, which has research coming through, or you could go with this burger with pfizer. we are worried that the pfizer

deal would be problematic in terms of jobs not only in sweden, but also in the u.k. >> after they combined astra and zeneca in 1999, hasn't the company diminished its presence within sweden? back in 2008, there were around 8500 workers there. now there are just 5900. there have been cuts to the workforce even ahead of a proposed merger from pfizer. productivity that increases are a good thing for an economy. it is quite clear that astra has done some downsizing too. compared to the track record of pfizer and with the limited commitment they have to research and development, i am worried that we would see downscaling. astrazeneca is still a very important swedish companies --

company. it is one of our major exporters and taxpayers. the merger with astrazeneca has worked quite well. company that has had a strong presence in our market and we are quite worried that pfizer, an american company, the move out of our region. i think we have a stake in this. we have put money into life science research. we are paying for a lot of the pharmaceuticals that they are providing. we are worried that this would mean job losses not only in sweden, but in the u.k. if you see a negative reaction today -- >> carry on. i am sorry. was trying to say that if you would see a negative reaction today and tomorrow from the british government, the british political system, i am quite certain that pfizer would

not push through with this deal. hostile takeover notthe benefits of that are for growth. i think this is a very important debate that we are going to have today and tomorrow. >> do you think a finger should be pointed at the u.s.? do you think the u.s. should make it harder for domestic companies to shift their legal addresses to other countries to avoid taxes? believe in a globalized economy where companies are merging across borders. if the logic of the business deal is basically tax-driven, i think that is problematic. if you have a tax competition with a race to the bottom, that might, in the short term, be beneficial. , it islong-term detrimental to business logic. that cannot be profitable in the

long run. >> all in all, you have obviously got your doubts. aboutdo you draw the line being an open economy, which sweden is? you have a positive attitude towards globalization. where do you draw the line between that and stopping on yourentities preying companies and possibly cutting jobs? where is the line to be drawn? been stickingve to our fundamentals -- regime, whichopen has been working in the long run. mergers have normally been done through a corporate strategy with two companies, the synergy effects that they want to benefit from. in this case, we are seeing a business sector where we are heavily involved through research and development and we also see a hostile takeover and that is problematic in itself.

we have a story ruled out eu legislation -- we have this orically ruledst out eu legislation in this area. >> have you spoken to george osborne? will you air your views to him? spoken to the british government and the chancellor. we have had a discussion with this issue. he is well aware that we are quite skeptical of this deal. our experience with commitments from pfizer have been not that convincing. >> thank you for joining us today. i know you have to jump on a plane. we will speak to you again soon. sweden's finance minister talking about the potential pfizer-astrazeneca link. richard jeffrey with a few thoughts. should politicians be meddling or is it down to the shareholders? >> you can feel the rising intic sent

some of those comments. politicians have to be wary about intervening in these sorts of situations. i do not think this deal is simply driven by tax considerations. i think politicians and countries have to take a step back, take a deep red, and be confident in their approach. if they want to attract investment. this is not a static situation. this is a dynamic situation. if astrazeneca is taken over by pfizer, there will be investment money available in the u.k. to do other things with. obviously, investors will receive some cash back as well as shares. that is part of a dynamic economy. part of thes also world economic cycle beginning to normalize, companies beginning to look towards extending their operations, developing their operations. i think it will go hand-in-hand with the stronger investment cycle that we expect to see. >> good to have you today. thank you for joining us. you back in two minutes.

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>> we have got our eyes on the skies today with airbus and easyjet reporting numbers earlier. estimates. analyst aircraft sales drop from a year earlier. slipped, first-half

losses more than forecast. david tweed is watching airbus. caroline hyde is watching easyjet. david, why the earnings drop that airbus? >> we saw some aircraft deliveries being deferred, particularly by the asian airliners. the number that we come in with, third quarter deliveries, 141 planes a year144 earlier in the first quarter. consensus earnings came in about 10% better than consensus expectations from analysts. the share price is up five percent. for the year, it has done about seven percent. still, it is moving in the right direction. the reason why we got better than consensus earnings is because of better margins, particularly in airbus commercial, the division that makes the marshall aircraft. two thirds of their revenue now are. the good news now is the a380.

they look as if they are making much better progress in their cost control of the a380 and they are on track to make that aircraft break even by 2015. so that is good news along with another bit of good news, that -body, they are on track to deliver that to guitar by the end of the year. by the end of the year. this is a gradual story of improvement that is looking as if it is on track as well. >> airbus shares up by 4.5%. easyjet shares are not doing so well. >> the worst day for easyjet shares in about three months. despite profitability improving, the pretax loss was better than this time last year. not as well as analysts had hoped, but still better. and ales better than analyst expected despite easter coming late. basically, easyjet continues to deliver.

maybe they wanted really flamboyant results if you are still going to be piling into these shares. shares have outperformed over this year and in the last 12 months. but this is a company that is on business travelers. 12 million in the last well months. that was carolyn mccall's big focus. therefore, the business travelers managed to offset a late easter and the better weather meant there were less disruptions. >> what about drones? >> this is a fascinating one. easyjet is focused on cost-cutting. amazing that they are going to be investing in drones. drones are going to be circling the planes to spot any sort of damage. say your flight gets hit by a lightning strike. usually you have to land the plane and take an evening out to assess whether the flight could take off the next day. well, you could have a drone inspect the plane that much

faster along with 3-d glasses they will be using. less, this means cost-cutting, which will be better. also get this, scrapping paper manuals is likely to save easyjet half a million pounds per year. if you cut a kilo out of a plane, that saves $20,000 per plane. scale it up with the amount of planes that they have. effective as to how much weight and luggage you are carrying as well. caroline, see you later. after the break, we will leave you with socgen. it is holding investor data. they posted a surprise 13% profit last week. it is all about risk in russia. big exposure to russia. we bring you our interview with the ceo. that is next "on the move." european stocks 26 minutes into the tuesday session, stocks are higher. ♪

>> welcome back to "on the move." europeanoomberg's headquarters in london. that's focus on russian risk. 13% profit drop last week for societe generale. we ask them how they are adapting. >> what we are experiencing is a slowdown of the russian economy. we reviewed our business plan. what we are seeing today is that

in the central scenario, both parties avoid the escalation of , yes,n that effectively there is a slowdown. we are able to implement a strategy of growth with straight risk and liquidity management. large, promising market. we confirmed a long-term commitment to russia. >> where it easy for european sanctions. ? >> i think that europe and the world will probably react very differently in the nature of the sanctions if russia was to send military troops to ukraine. but as long as it is not the case, and it is not the case currently, i do think the escalation of sanctions can be that significant for the russian economy.

investing ineep russia given the current situation? --i take a long-term suspect the long term perspective. russia is a part of europe. it is very strong links with many countries in central and eastern europe -- germany, italy. again, both parties know that they have an interest to maintain these economic and political relationships. >> we use the opportunity if other banks decide to exit from pressure? >> may i say that what we can also factor is that when there is a slowdown, there might be less competition. russian banks might have their own problem's with ukraine. it probably means a capacity to learn. for the time being, again, we stick to a strategy. in the there will be some opportunities, but it is too early to say. >> we are 30 minutes into the

trading day. let's see how things are shaping up so far. stocks rising right across the board today, after we saw the u.s. indices, the dow and s&p hit new records yesterday. similar gains for the cac 40 in paris as for the ftse 100. the dax and ibex are trading higher as well. these are the bloomberg top headlines. a disputed referendum showed support for independence. russia's state-owned gas promise threatening to cut off gas supplies to ukraine unless kiev pays for its gas by june 2. pfizer may be planning to sweeten its bid for astrazeneca for a second time. people familiar with the discussions say that pfizer is crafting a new offer that

increases the value from 50 pounds a share and boosts the cash portion of the deal. if former treasury secretary, timothy geithner says the u.s. banking system is now safer than in the months ahead of the financial crisis. geithner a toll charlie rose of the days of financial panic may not be over. >> we are absolutely vulnerable, if not in this country, in other countries, from the risk of a major panic again. is inherent in the financial systems. you can eliminate or ban it. to can do a lot of things reduce your vulnerability to it, and the reforms we put in place , however messy and imperfect, they are a very powerful guard against that risk. >> tonight on bloomberg, don't miss it.

the waymakers stand in of pfizer's takeover plans of astrazeneca. out what she wants to hear from chief executive ian reese. ♪

>> i mark barton in london. this is "on the move." to sweeten to plan

its takeover bid for astrazeneca. its chief executive has a very busy morning ahead of him. he will let up here before the u.k. parliament in just over one hour. can he win favor with the british leadership? our international correspondent hans nichols has a preview with one of those lawmakers. hans, its over to you. mark, good morning to you. we are joined this morning by the labour mp. she is on the committee that will be inquiring about these very matters. i want to ask a few questions here. thank you for being with us. is there anything you reese can do to convince you that he is serious about his commitment to jobs in the united kingdom? >> i think he has to say what his strategy is. is he actually going to add value to the company? is going to add value to the u.k. in terms of tax?

is going to add to our industrial base? assertionsty vague being made. >> you're trying to get at his >> it wouldis he -- appear that pfizer is for a cash-rich. it doesn't want to re-patch rate the money back to the u.s. because of current tax rates. is thecerned that it primary reason why this company was to come to u.k. and take over astrazeneca. it is a wrong reason and will have the wrong consequences for the u.k.. >> so the burden of proof is on him. he has to convince you that he is doing it for reasons other than advantageous tax settings. >> given the scale of this theor and importance to u.k. overall, the importance to thousands of workers here in the united kingdom, is that we need

to see much more detail, much more assurance that it will actually be a better case for united kingdom. >> he has given some assurances, 20% of r&d jobs staying here in the u.k.. >> i have some doubts as to how those can be enforced. it has a major get out clause. no definition of what the circumstances will be and what would trigger it. to what extent the u.k. could prevent harm and damage to this environment -- to his economical sector. skeptical questioning could have a chilling effect on investment inside the united kingdom. i do think that given the scale of this potential deal, the impact on this vital sector

for our u.k. industry is important. >> you will have a member of the government addressing the committee. we see to drive a wedge between his position and the conservatives position? test mr.k we will cables position. he is always stated on the record that he wants to discourage short-term moves simply for attack is -- for tax advantages. there are tensions within the coalition, and we want to see to what extent mr. cable's viewpoint is having the upper hand or whether this is being led by number 10 and mr. cameron. offer byn increased pfizer soften your opposition? >> that i think is about the size of the bid, it is about the

10 -- the intent about what it will achieve. it is what value it adds to our british industrial base. >> thank you for joining us. mark, we'll throw it back to you in the studio. has a can see, ian read difficult ahead of them. outside of parliament ahead of the grilling that the chief executive officer of pfizer is set to have in just over an hour. bloomberg has exclusive access to the idea summit taking place in london. our markets editor manus cranny standing by with more. good morning, manus. >> a very good day to you. a pretty big day ahead of us. 300 clients here at the goldman -- ideasa summit

summit. i was looking at the rundown of subjects. demographics is a really hot topic at the moment. how do you look at the world and its ever exploding population? the reality is actually that we will live in a world with people that are a lot older and the total population will be smaller. to keep your spine that is falling fertility and increased longevity. >> talk to me a little more about that. do falling fertility have to changing demographics? women perhaps deciding to have kids until they're older. is that the driving force? iswomen being more educated a huge driving force. we estimate that in the least ,bout companies -- countries the fertility rate can drop by 5.25 children. the displacement rate around the world is 2.1.

shopping fertility, not just develop market issue, also developing market issue areas thailand and vietnam, both have lower fertility rates than europe. europe.entioned there is a great stat you mention of the u.k.. talk me through that. i think it crystallizes what is happening here. >> on the one hand you have the falling fertility, on the other you have increased longevity, because of course you have had a gleason science and medicine and so we are all living longer. in the u.k., there are 12,000 people, roughly, that have reached the age of 100. everyday, we're are adding five hours to the average lifespan. specifically, we have 8 million people alive that will reach 100. hopefully, you and i will be two of those people. sure if i will resort hundred club. i'm happy at 75. tell me what that means to goldman sachs.

moment come to that in a in terms of the power of the purse. tight together that strand for me which is to graphics, growth, longevity, fertility. order a look at that from an asset management point of view? >> in the pension world, if we are all living longer, pension liabilities will go up. that is hard for the pension funds. from an investment perspective, just to give an example, one thing we would give an example of would the nappies. two years ago, they sold more geriatric nappies and baby nappies. the opposite is happening in nigeria, where you are an explosion of baby nappies. is a very simple example to say that those big transaction can have a big impact, even when you look at the world bottom-up. read.re's a paper i i know you are with one of your colleagues last night when activist paper. i got as far as the power of the

purse. it is fascinating, because this is about women come access to capital, and the consequences of women with access to capital. are of the numbers in this quite mind blowing in terms of gdp and in terms of the per capita income. talk me through the top line of the paper. >> i co-authored a paper called giving credit where it is due. the conclusion is very consistent with all the research we have done on women and developing economies. if we elevate the status of women and girls in developing countries, we will also elevate the economic performance of those countries. the headline of this paper is that we look around the world in developing countries. we think about 70% of women are unserved.s -- we think we can add 12% of those countries after 2020.

>> how you close that gap? >> is very important because a way to close it is to prove that women are good credit. importantly, there are millions of women in the developing world that are inspiring -- that are aspiring entrepreneurs. we need to make sure that they get access to the finance at they need the dice can appreciate that. it will expand their loan book profitably to lending to women. it is just a matter of making sure that is a global community, we make the resources available to match the ambitions of those women. >> katie, enjoy the day. i think you're due on stage in a few minutes. enjoy the moderation. thanks for having us here today. >> always a pleasure. back to you, mark. coming up and roughly

30 minutes time. a strong line up today. >> are we the dream team? >> the replace dream team. we have some great guests there . >> she only has four hours sleep a night. >> there has to be six minimum. not just about being a female in business, but encouraging diversity in general. she is really thought out how different nationalities are in her executive committee. to get it will be great her view on whether austerity is actually pushing many young people to setting up their own companies and whether businesses that much more attractive. it will be great to get a viewpoint on politics.

it'll be interesting to hear politicians getting involved on astrazeneca and pfizer. >> we will be speaking to top analysts on whether this is indeed a deal is an official for tax incentive purposes or if it helps the pipeline or rmb in the u.k.. rmb -- or r&d in the u.k.. >> there not to say oh, it is all about -- >> they deftly tried to downplay the tax reasons. -- definitely tried to downplay the tax reasons. >> they made assurances. those assurances were worth the

paper they're written on. >> we will see. they will be debating the various performances of easyjet versus airbus this morning on the back of earnings, and also looking at how the at&t potential deal of buying out directv may affect vodafone. >> the spring up to speed with some company news today on the move. at&t is supposed to be in advanced talks to buy directv for $50 billion. it will give them access to the largest u.s. satellite tv provider to combine with its wireless phone and internet services. according to people familiar with the negotiations, the deal is more than a week from being completed. -- the broadcaster owned by former italian prime minister silvio berlusconi owns in telefonica.

the crisis in ukraine is needed to avoid harming business in europe. the italian bank is one of the largest in ukraine. >> i hope that at the end of the day, common sense will prevail on both sides, in ukraine but also in russia. we need to find a solution, because whatever it is, if we don't find a solution soon, it could affect all european business, including europe and russia. we head to the break, we will leave you with this food for thought in a new study shows the fountain of youth may not be full of red wine after all. resveratrol fails to promote longevity among italians.

a study by johns hopkins university followed participants in tuscany for nine years. those who drank red wine were just as likely to develop heart disease or cancer. sour grapes. "on the move" akin to. in two. ♪

>> welcome back. i am mark barton in london. time is 8:54.

top moversng at the so far. where were you on december the 30th, 1999? >> i was a country club getting ready to see in the millennium. remarkable. we have touches levels and come back. should we be a short-term? i want to talk about things in the longer-term. i love that interview is manus cranny over goldman sachs. looking at demographics. japan, for instance. we know we will see a third of that population over 65. what does it mean for debt dynamics and consumer spending. how do you track demographics without going by the bureau of statistics? when the going by? nappy sales. i thought that was brilliant. more sales to geriatrics than babies in japan two years ago? we have crossed that line?

it was absolutely brilliant. some of the ways you can track demographics. fantastic. >> i want to know about nappies, though. deflation, prior to this month. talked to a couple of people about this. we are still below where the central bank would like to see inflation. this is a bit of a snap. a swedish krona rebound. this is a case for the eurozone, escape -- except sweden has this thing called growth. get a very solid year last year, annually. things aren't that obvious for sweden yet. every low inflation. it is a pretty good economy. that is the one to watch. thank you very much.

caroline and i will be back on "the pulse." will be speaking to this matter, the former world bank president. the pulse is next page don't you dare move. ♪ . .

>> get set for a grilling. pfizer's chief executive will testify in front of u.k. lawmakers amid plans to sweeten its after zeneca takeover bid. >> socgen sets the bar high. the bank targets higher profits helped by lending in russia and africa. thisill hear from its ceo hour. >> and we speak with the cofounder of skype and the former head of the world bank. we are live at goldman sachs' asset management ideas summit.