in ank. is still fundamentally keen a zero game -- fundamentally in a zero game. >> let's go to zürich. .ou are watching credit suisse >> that is right. licenses and the man at the top was this investigation mishandled? fallout from the guilty plea and you and i will talk about it. chilcote spoke to the russian prime minister. have a listen. >> we admit that we are sure slowly approaching. ryan is in moscow.

good morning. >> good morning. we sat down with the prime minister. it was his first interview since nations were imposed. vladimir putin is in china. is doing and historic tended towards the country. it is part of a gas supply deal. the prime minister told me it is likely to be signed today. the government says the the deal and the signing could come at any moment now. large united kingdom stocks. they say that next year is going to get worse. why? because this is a company on a standalone basis. they could cross over the border. not so. they will buy direct tv.

now, it looks like vodafone will keep struggling. the sales are coming from europe. remaining. you name it. they could gain today. three years of a turnaround. a surge in falling profits. the trends are continuing to get better. there is more profitability and money back to shareholders. the profits are coming in better than expected. >> we are getting a little bit about the ecb and the federal reserve. charlie speaking later. we have william dudley. the second most of 2014. there is a little bit in these markets and we see confirmation on the ukrainian story.

whether they have ordered the troops back to the base. we will be getting some speak. the futures are unchanged at the moment. that it was just opening to the downside and come down to what the message is as some of the figures go by. some countries -- companies we have been mentioning, let's just see. first up, getting on with doing business. he is there and delivering a resilient message. credit suisse seems to be the top line. they are passing through a charge. it is 1.25%. caroline said that is the third straight annual drop in profits.

merchandise in the margins in the general merchandise dismiss is at an eight year low. turnaround? that is not. it reflects back and seven straight orders of a drop in revenue. guiding lower and the dividends are not assured in this world. >> let's stay with the markets. we have the chief investment officer. good morning to you. you are high on equities right now. why? >> we are getting into sovereign the -- they do not look particularly attractive. equitieseen looking at where we think return is.

it is somewhat better. but some of the southern european equity market proved quite volatile. italy was one of the early strong performers. they are down eight percent. is it worth dipping our toes into the likes of italy? we will talk about the bond in a second. is it a risky investment? >> we have to be aware of the equity markets. that the economy is alien is having problems. andequities are overvalued i think the valuations are retracing. >> the bond markets have done exactly what you have said with the equity markets. they have had a great run.

have shot upds subtly and show that these markets can be volatile. >> there is an acceptance growing that the ecb will be looking to some sort of a package in june. the theory is that, for those markets, you will see inflation kicking in again and it is not a good use if you are a bond investor. out frombeen floating hedge funds. >> you are looking at some of the big stories today. and anotherg them decline in profits. they had three years to turn the ship around. how much longer will he be given? >> i think that time is not on his side and i would say that

range that kicks and has received a favorable reception. went to some lengths to disclose separate profits for clothing. that the aim is to convince markets that it is changing. the proof will be in the figures the next time around dan -- and europe isline shrinking. >> the future is in the mobile space. i think those mobile operators are scrambling around. >> thank you. here what else is coming up.

a bloomberg exclusive. we sat down with the russians. pay $2.6 billion in tax fees.

>> in london, this is on the move. amazon.

here is a stop on the move. it is vodafone. straight quarter of service revenue decline. shrinking organic revenue. was a drop. the last time the metric rose it was at the end of june 2012. the shares are down by over three today. let's have a look at credit suisse. leading guilty to helping americans avoid taxes. zürich is now from jonathan ferro. what is the deal between the bank and the u.s. authority. it is a big find. it is a guilty plea. on the plus side, they retain

their license. bank, let's get back to business. outside of the bank, there is a big debate about the way they handle this investigation. drawn withls will be ubs. they paid a fine without a guilty plea. the u.s. attorney general gave his opinion on how he thought they handle things. >> they failed to take basic steps to ensure compliance with taxation laws. when they began to feel pressure , theyply with the law were notified in 2010 and they failed to retain key documents which allowed evidence to be lost or destroyed. they conducted an inadequate internal inquiry. is that view on how credit

suisse handled the investigation that leads some to believe that the department of justice went after them harder. significance of this stilted and? -- guilty plea? >> it has been politicized over the last months. they fired a warning shot for other banks. the business aspect of this is less clear. he spoke earlier on and said look, we do not see any material impacting the business. he is taking an optimistic point of view. there is concern among analysts and investors. the internal rules -- they admitted guilt to a crime.

that is the big unknown. he said that you cannot give an answer to that. to be naïve and say that nobody knew what the outcome would be. they knew the outcome. credit suisse knew the outcome. if anybody knows the fallout for this, credit suisse is the answer. >> the shares are up by 2.6% today. story?at tell the the shares are up. dugan sees clients doing business with the bank, despite the guilty plea. are they still worried about the stock? >> they are waiting to see how it unfolds. the use authorities wanted them to. the fine has come in where the market expected it and, over the

next year, we will see what andens to the net worth history does not look favorably on multinationals when they get caught by the u.s. authority. >> you like financials. fite does credit suisse into the viewpoint of the financial industry? >> we are we are not. there is lots of work to be done. we are bringing new money to work. we like the numbers of the insurance companies and the figures we had. the business is going from strength to strength and the demographics.

it is across the whole region. back after the nowcellor surprises all and that is going to have one. drugs, cannot get away from them. the takeover battle. is this deal dead in the water? pfizer -- according to the u.k. takeover panel rules, final means final. is that it? is there a discussion between the companies? >> the clock is ticking down. i think the shareholders have 40% of the company and one presumes that the chairman has been talking to them.

if they are not, the deal is not dead. >> what about the other shareholders? they say they are disappointed because they did not enter into formal negotiations. undoubtedly, shareholders are looking at money on the table. the stock was low and less than three months ago. it picked up value. are they going to be asked? possibly not. >> would they take a punt on the thinking if the pfizer deal does not materialize? astra could be a potential target the company. >> it could be. buyer and any deal would have to be on favorable terms.

i am not sure that any drug company is ready? >> you like insurers. you favor them. have both cases, they long-term supplies of minerals and strong geographic positions. a good supply in the chinese despite the recent fear over chinese growth. reacheddemand inc. usage of metals and, consequently, they have had a long run as of late. would you be rushing into japan, like last year? optimistic on

japan. nothing is expected tomorrow. why by japan? >> people are getting carried a way. we have. i would say to you that the japanese authorities are aware of the opportunity for this government to do something meaningful to the economy. i see a package forthcoming in the summer. there is a weaker yen. >> it has been on the move for a long time. it moved a lot. confident that the climb will resume. consequently, it will give the catalyst that people need to return to the market that is not correlated with other western markets. you have diversification.

>> great to have you. nice to talk to you. the chief investment officer. up next, more from our exclusive conversation with demetri. he says --

>> welcome back. i am mark martin. interview, the russian prime minister said that with ryan chilcote to talk about everything. the impact of sanctions. ryan joins us. we have all the details. >> good morning. down for minister sat his first interview since sanctions were imposed and it during a standoff that he said could lead to a second cold war. the biggest gathering of business of the year. you will remember the white house said that ceos should stay away from it. >> i think this is bad. decisions me of the

made in this country. suffers interests because of ideology. you should ask the ceos. sacrificey have to their business interests for the sake of solidarity but to mark >> and puts them in a difficult position. make money and do not want to go against the government wishes. >> this is bringing ideology. what the soviet union did in the past. ideology did not sue the government. this is what the administration is doing now. --is destroying the national

[indiscernible] >> there is only one more thing i would like to say. remind you that no sanctions were introduced against united states. we may -- we -- trying to scare us? this will lead nowhere. takes officent after obama and the sanctions will be forgotten. resident -- the president is in china. thecrucial part of this is gas supply deal. it is just as western europe

talks about diversifying itself. the prime minister says he does not give that much credence and he does not see a viable alternative to russian desk at boards. it is all the same. it will be the opening of a new market. he thinks that deal will go through today. have a listen. >> i think it is likely that there will be a contract and that means long-term agreements. there should be robust for tj cooperation. it will be finalized very soon. deal was a couple of -- ago. the government says it could come at any time. we will have to watch that. that he wouldaid not guarantee that the south would remain part of the country. that is crucial. >> see you later.

we have the rest of that exclusive interview. up, we will have profit declined. details next.

>> welcome back. are into the trading day. london.decline in cranny has three stocks to watch. thought 2.6 billion was bad, reconciling the differences.

this is the number. there? the have only set aside 1.1 billion to reconcile their differences. astrazeneca, day two of the declines. say, pfizer, go away. an aggressive deal that they are doing and are urging pfizer to give up on the deal. stock is worth 49. they produce cider. the profitability rises. the fit straight year in a row. back to you.

>> these are the headlines today. the chinese government has denied charges. indicted the chinese officials. espionage of commercial -- they say they have been the victims of espionage. law nationwide. they say that it is not something that people should be concerned about. suisse hascredit fled guilty to cheating on taxes. they will pay billions in penalties. this is the largest prosecution of a bank in a decade.

they are facing similar criminal probes united states. another condominium we are watching is spencer. they continue to decline. is going to move to delivery. here with more is caroline hyde not an end to the three year plan. >> it is not a in glory. you can see the shares trading lower. there is a decline. they are down 1.4% and it is the area in which the company continues to struggle. mark is not managing to get to grips with this company. there are areas of road. it is up. the retailer was promised and

the sales are of. profit just beat. his is a company that has thrown billions that turning themselves around. improvedave promised profitability. these improvements come from? >> in clothing. it is the best that we have had in years. not much. it was a slight turn for the better and they say that the trends are going to. the margins of profitability will go up. 250 newo promise us stores. there is an area of growth. most of all, they will be

looking at the delivery. they have doubled investment. they promised that. spendingthey will cut each year for the next years and increase.ity will excess cash will go back to you. today is all eyes on negative profit. they say profits are continuing to decline. >> the shares are down. i am joined by richard. he is the director of research. >> it is difficult to tell. we saw the figures and they suggest the clothing is doing better. thes weird figures and numbers were down so much that

was like they have a space. i am not convinced. they are doing the right thing the brands are similar. there isn't anything they can take them on. that is what they have to do. not a buyout with their customers. >> what are we talking about? >> yes. that is a range that you have to refresh. you have to have people used to shopping. >> do the older ladies still buy into it? ast year, there was collection that went well with reviewers and the older ladies were lukewarm. >> the five is a bit better.

it should be. they are still at the bottom and hoping to get things back. that is doing phenomenally well. that must be holding up the business. i cannot see how clothing to be making that much profit? >> they are destroying credibility. it used to be consistent and have styles of retail discipline. >> do they have something to learn? not in sales. and profitability. are an incredibly well disciplined business. that is ultimately going to be the key. they are a multi-brand business. you have a long way to go forward. >> billions on improving stores.

the online seems to be paying in sales. not like the merchandise, it does not matter. >> is there a brand? >> now. thewomen looked at merchandise. >> it is a serious failure. >> is it the ceo? >> how much time does he have left? >> he does not have any after christmas. once one more collection. is the third year of the climbing profits. sticky companies would

with money. >> you have to deliver the goods. >> some would say that the next is delivering shareholders. what about the international push? >> there is a cardinal rule. include, it is superb. they are not being complacent. food is a competitive marketplace right now. >> that is the keys to what is going on. the consumers are much better informed. is the benefit of the doubt. why is one of the reasons they are doing so badly. people really care.

they do not make do. merchandise, merchandise, merchandise. >> indeed. >> the senior analyst. vodafone is dropping for a second straight quarter. find out why after this.

>> i am mark barton. the communications sector lurches and the u.k. giants are on the shelf. the acquisition of vodafone seems less likely. here with more is caroline hyde. not a great trend for vodafone. >> this is a company that is very exposed. the sales come from germany, u.k., italy. they had to take charges in the last year. spain, romania, the list goes on. when you are analyzing the independent standalone, there is much hope that it would be supplied by overseas. atlantic would have to face them on their own. they are not making calls as

much as we used to. we can use skype and messaging. provided need the data by phone providers. now, they are trying to lure us in to get us using faster connections. the have to invest in that. that is sitting there earnings. the earnings are going to be worst. they have not grown in a year and they are telling us that next year will be even more poor because of the investments they have to make. out ine stretching spain, and germany, it is not paying off. it is a long-term bet. >> vodafone being alone, independent, not being part of a takeover. >> wehat worry investors?

got a deal. a $48.5 billion deal because at&t wanted to bring acquisitions over to europe. there was talk that they would cable is goingd crazy. you have comcast buying time focus atd at&t has to home and not focus on europe. the likelihood that the mnj will &a will come. analysts. see more cuts come from analysts? a little bit more. it does not seem to be standing all that strong. they got out of verizon

wireless. they have a big cash pile and have to invest. the chief executive is suddenly paying attention at home. trying to really move those customers. >> second two china mobile and the subscribers. >> it is huge. got to invest big. >> thanks. see you later. let's go back to the russian prime minister talking about the second cold war that i could emerge from the ukraine. he weighs in on the sanctions in his country. >> in fact, a great number of people are used to using foreign systems. visa, mastercard, and american express.

now, let me stipulate what will happen to stop i will focus on sanctions and political decisions. they are considered an act of parliament. issue fromat this another perspective. i have a card issued. million inound 700 this country. more than the population. i would like to stress that i do not have a relationship with a foreign state. i have a relationship with the card. it never occurred to me that my payment depends on a foreign state. whatld like to know if visa and mastercard did was in violation. we trusted those payment systems. if i was a lawyer. i am, unfortunately, not at the moment.

concerned that visa and mastercard are just following orders, it in a sense, from the treasury of the united states? to say that we do not want visa or mastercard to leave russia. our relationship with them has been productive. actions, that such responding in such an awkward manner. how are the politics coming? we have it at the top of the hour. a good morning. what's good morning. looking forward to it. we go back to russia. we will hear more from our man in moscow. ryan chilcote is on his way.

we will hear more from that exclusive interview. .ome interesting comments it looks like tensions are easing. troops. ryan was told that the united states and russia are being pulled into a cold war. he stopped short of guaranteeing that russia would not and ask further provinces in the ukraine. we will talk about one of my topics. the most loved brand worldwide, according to some studies. to rbucks is pushing in

tea. you do not want to miss that. they cannot get a second airport off the ground. >> iq. see you in 10 minutes. andng up, kick starter indiegogo. cashing in on crowd funding. the details after the break.

>> welcome back. i am mark vartan. barton.n -- fundedarter has projects. elliott gotkine reports that it is not just the fundraisers that are cashing in. 2,1., kingmaker of kick starter. he makes videos. having him on your team can translate to megabucks. >> we help you get from nothing to a you do not of money. mmount of money.

>> one involves a paper airplane and an option for your headphones. >> they can be moved. here is how. >> it makes them air-conditioner smart. >> they are banking on videos making the success. the company producing the video has a stake in it. they will get a cut. >> they take some cash upfront to pay for the shoot. and hits a $70,000 target from indiegogo. >> i would pay a lot of money. video a great indio -- is important. you can have a great product. if you do not have the right message, no one will look at you. >> success is not guaranteed.

>> we need your help. >> it monitors baby bottling. a smartphone controlled car. early investment, there are risks. he has been successful so far and has quadrupled his workforce . he plans to open an office in san francisco, new york, where they are based. elliott gotkine. israel. >> let's go to a recap. market -- manus cranny is here. a board member has spoken and has warned about low inflation. >> a recurrence theme. the speaker yesterday said that negative rates are something

that you have to tacitly accept if you want safety. the extended lower inflation that is the risk. with that in mind, he says that the ecb has instruments to face this risk. the issue is where does the euro go. hasn't run out of steam? they say that it is unlikely to depreciate in coming months because they lower the rate. they go into a quantitative easing mode. hot money flows in. >> it has done in anticipation of that. this is the theme that is coming through. i guarantee you that you will be using the word counterfactual. >> counterfactual.

stay with us. this is on the move. we will be back tomorrow. i will be back with you in four minutes. do not move. . .

>> we are slowly but surely approaching a second cold war that nobody needs. russia's primeom minister, speaking exclusively to bloomberg. >> and credit suisse leads guilty. they face $2.6 billion in penalties for helping americans avoid taxes. and vodafone shares take a hit as revenue numbers decline. welcome to "the pulse."