>> 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." bloomberg european

headquarters in london. >> great to be back with you for a second day. let's get straight to our top story. we begin with a bloomberg exclusive. russian prime minister dmitri medvedev sat down with ryan chilcote to talk about the ongoing situation in ukraine and the impact on the sanctions. i sat prime minister and down for what was his first interview with an international media organization sanctions were imposed against his country. he told me that the standoff with the west could lead to a second cold war. >> to put it simply, sanctions are always a sign of tense relations. we do not support sanctions. we have not commented on them a great deal or responded to them harshly. it is bad for international economic relations, our

relations with europe and the united states. those sanctions are a sharp knife for european business and american business. the only ones who want sanctions are politicians who use them to reinforce their convictions and power. for example, president obama needs to show congress that america does not need russia. they need to show that the u.s. president can make tough decisions, that he is doing everything that the senate is accusing him of not doing. the situation is somehow different for europe. >> speaking about president obama, because you were the author, the architect, with president obama, of the recent relations. are you disappointed with how he has handled this crisis?

>> yes, i believe that president discussing do more those issues. some decisions are disappointing. we have done a load for russian-u.s. relations. we believe doing so was right. sorry that everything that has been achieved is now being eliminated by the decisions. basically, we are slowly but surely approaching a second cold war that nobody needs. why am i saying this? because a competent politician knows how to make careful, subtle, and wise incisions. -- decisions. which i believe he did for a while. the united states is one of the parties to suffer from this. what we also discussed ukraine and the deadline ukraine is facing to pay its gas bill to

the russians. the russian prime minister telling me the ukrainians owe the russians $3.5 billion. while he said they do not need to pay all of that in one go at the beginning of june to avoid a supply cut, they do need to pay at least some of it and provide a timetable when the russians will get the rest. only after that will the russians be willing to make some concessions on price. have a listen. >> frankly, we have no desire at all to help the ukrainian authorities because we do not consider them to be legitimate. they have not shown themselves to be honest. happening ins ukraine and the people residing in the country. them are prepared to discuss any collaboration, but in order for that to happen, it

is necessary for them to demonstrate a serious intention to cooperate. quickscan western europe count can western>> europe count on getting all of the gas that they expect to get this year? >> if the ukrainian market is stable and ukrainians fill all other obligations, europe will receive what it is entitled to in full. between thet european union, the u.s., and russia. if we succeed, everything will be fine. that forike to note europe, there is no guarantee that everything will remain as before. needslize that ukraine that. if we get this done, the

europeans would have access to gas at all times, regardless of who is in power in kiev. >> do not forget that president putin is in china today. the prime minister told me that the russians are very likely to sign a $400 billion gas supply deal to china that would allow them to diversify their export market away from europe. that deal has not been signed yet. the prime minister said he doesn't expect it. the prime minister saying it could come anytime now. it has been 15 years in the making. one other thing from this interview, what the prime minister did not say or would not guarantee. he declined to guarantee that the east and south of ukraine, respective of what happens, will remain part of ukraine. that is an assurance that the ukrainians, the european union, and the united states would have liked to hear. back to you. >> a great exclusive.

we are also looking forward to the interview you will be bringing us from st. petersburg later in the week and we will have more on the gas deal later in the hour. >> credit suisse cleated guilty to helpingguilty americans avoid taxes. joining us is jonathan ferro. tell us more about this agreement that credit suisse struck with the u.s. >> $2.6 billion is the number. we have been talking about it for weeks. it was not a big surprise on the side of money. but they do get to keep their banking licenses and their ceo, brady dougan. forgetll move on and about it. but let me tell you something, many people out there are not forgetting about it. they are questioning the way management has handled this investigation. investigators questioning credit suisse's behavior the last two years. brady dougan went to the senate

in february and said this was down to a few small swiss bankers that accounted for less than 1% of global profitability. listen to eric holder and he said this was an extensive and wide-ranging conspiracy. i leave you to decide. you those match up? up?o those match >> brady dougan seems optimistic that clients will carry on doing business with a bang. that is his view. what is the view of analysts? >> he was on the conference call this morning and seemed optimistic. they see no material impact thus far on the business itself. ask an analyst what they think about the fallout and they will not be able to give you an answer. there are plenty of reasons for that. it is just not clear. withlients continue to do -- to do business with them? do they have any internal rules that prohibit them from doing business with any entity that

has admitted or pleaded guilty to a crime? that is not clear. what is clear is that credit suisse and the regulators will have done their homework. i will look into it. i will have looked at the pension fund, the big crimes, and see whether they can continue doing business. the point is, no one really knows. the only answer that you are going to get is this will take time to play out. >> credit suisse shares up by 2.5%. >> while m&a in the communication sector in the u.s. may be flourishing, it has left eight u.k. giant on the shelf. the acquisition of vodafone looks less likely by at&t after they agreed to buy directv. here with more is airline hide. hyde.oline hide -- it is not looking good. >> we are slightly better than expected. this is a company that has given us growth in service revenue for more than a year.

that is basically money they get from us with text messaging, making calls from our phones. phone microsoft, weekend for free -- we can phone for free. vodafone is having to combat right now. they have real exposure to europe. charges, 6.6 billion pounds worth from germany, spain, portugal, romania. all of these economies having to set aside money for these sorts of issues. and they are looking outside europe to diversify. turkey, egypt, those countries are not exactly in a politically stable area. they are having to go to south africa for growth as well, india. it will take time for that to feed through. in while, they have to invest. $19 billion to improve their network. is the big reason why

they sold their stake in the u.s. company, verizon. what are they doing with that cash? what will they do with the money? are investors worried about the future of vodafone? >> they have made acquisitions already themselves. they bought up kabul bushland in inmany -- deutsche land germany. they are trying to give us the triple play. you have your internet, landline internet, and video conferencing. >> and your tv. >> this is what the new atmosphere is like. you have to be all things to all men. how worried are investors that it is no longer is health target? that had been the big question. it was a high valuation on vodafone. many thought at&t would swoop over from the atlantic and by vodafone. -- buy vodafone. that is what at&t initially wanted to do until comcast

snapped up time warner, a cable frenzy, and they had to turn their attention to the united states and u.s. content themselves. strong ison is, how vodafone as a stand-alone entity question mark -- entity? many investors are paring that optimism. they say that vodafone is not on the rise, it is a long-term bet, and it will take time for it to grow. >> yesterday, at&t agreed to buy directv is that we can all watch tv on our mobile. >> coming up, putin pivots to china. russia's president looks at ease as the rises in ukraine escalates. ♪

>> i believe it is very likely that there will be a contract. they believe it should be robust. it will be finalized very soon. i believe it is time we we chen agreement with the chinese. -- we reached an agreement with the chinese. >> that was russian prime minister dmitry medvedev speaking directly to bloomberg. he believes they will finalize a russian gas contract with china and that a second cold war could emerge from the crisis in ukraine. >> christopher joins us right now. thes the manager --

managing director of trusted sources. talks about this pipeline from china to russia for over a decade. walk us through what is at stake. >> it is the greatest economic synergy on earth. russia with its insatiable desire for primary materials. russia is right next door with abundance, reserves of the aforementioned. why has a deal not happened so far? >> it is all about price, isn't it? to whose benefit do you think he will be? reckon that there is a price that would make sense for both sides. to $11 for a10 thermal unit of russian gas. that would allow the gas to arrive at shanghai at the same price as the gas that is piped

from central asia. it would be competitive with ln g, coming up -- coming in from north america. that is the price of the deal to be got -- to be done. with the ukraine crisis, russia desperately needs something. >> does that mean the chinese can drive a harder bargain? >> clearly, they can and there will be commentary out there in the market if we get the news today. you could say we are writing for a fall in that respect. the lastm shares couple of months, they hope that the deal will be signed. >> absolutely. there could be disappointment in shanghai today or tomorrow. announced with great fanfare, the price will almost certainly not be disclosed. the parties will agree not to disclose and there may be suspicions that the russians

have been driven to an uneconomic price to show they have alternative economic and energy options in the east. au heard dmitry medvedev call potential new cold war. to get those tax revenues for the shareholders of gazprom, that would be a risk. in the deal is struck next day or so, does it send the message that russell -- that russia has struck this deal with china and saying that we can do deals with other big countries, we are not so reliant on you? what is the significance of striking the deal when it comes to deal political relationships? >> i would argue that the real significance is not geopolitical. ,n the geopolitical sphere everyone will stand on their positions. russia will say, whatever the economic cost of fair amount interest in ukraine, we will take it on the chin. the u.s. and the european

governments will say that the principal is paramount and theing else can withstand sovereignty of ukraine. actually, it is more on the investment side. if gazprom strikes this deal, it would mean that they have got commercial for the first time. it has opened a market by offering a price that works in that market. that is the big message for the european gas market. if it were to trade actively on the european gas hub, which uses the power of its volumes to be more commercial, these are things which the bureaucrats in brussels have long been demanding. gazprom could be very competitive and successful in the european gas market if it got more commercial. >> you would say that they were not offered a commercial price to ukraine because they were giving 80% discount to ukraine until they have just taken it back. what do you think the prospects are of ukraine paying their gas bills at the price gazprom is now asking?

>> i think zero at the formal price that gazprom is asking, which reverses even the discount that was connected. i think there is little chance that russia will agree to the very low price that it offered to the previous ukrainian regime in december. case, a as in the china deal can be struck in the middle. ukraine will pay off most of its bills at a lower price -- >> with money from the imf -- >> with money from the imf and the united states government. and that will open up a negotiation. fromne can get gas back places like slovakia at about $3.60 to $3.80. >> so a gas crisis will be averted?

>> even if there was an interruption of supply in june, the crisis would have existed only on paper. no one would have felt the effect. >> the winter worry. >> if it were to be cut off in june, it would not be trivial because it would store up serious problems for the forthcoming winter. my view is that they will avoid the crunch because ukraine has the money to pay. there is a deal to be done. disk --crisis is on a a.d. escalating path. i think it is bullish. >> that is good to hear. it has many politicians in the united states and europe i rate that the money is going right back to gazprom. 9:21 here in london. still to come, berlin's unfinished airport. we look at some of their efforts to shame the city into getting its act together. and we will bring you a very special conversation with airbus' chief executive.

that is later in the show. do not miss it. ♪

>> it is time for today's hotshots. commuters get an early morning surprising new york when five divers are over the skyline. they passed over the financial district, landing just over a barge on the hudson river.

>> and a run for their money during a fast-paced training session in -- she is the first woman ever to win the ama pro road race. let's see how the markets are trading. manus cranny has your asset check read -- check. >> we are within 1% of record highs on european equities. still, the language is about what happens next in terms of the european central bank. russia has not signed its euphoric gas deal. that is for sure. we have had some ecb commentary coming from the spanish central banker, basically saying that the drop in prices is one of the biggest issues on the map. we are down .4% in london at the moment. have a look at this. honorable are adding to their capacity in eight -- in australia. 2.16%. equities are struggling.

it is the next piece of substantial news that moves the agenda along. in terms of the euro, on the back of those spanish comments coming from mr. linde. at a three-month low. there are a couple of individual names, credit suisse, vodafone, and along with that, where did we go? that is very bad. look at this. up 1.6%. who is next to have those issues? potentially paribas, with over $3.5 billion worth of fines. jam tomorrow. that is all about their earnings next year. >> coming up, a bloomberg first interview. we are going to speak to an italian coffee maker, opening

their books this morning. we will dig into their latest earnings report with their ceo. mediarst international report. you can also follow me on twitter. ♪

>> welcome back to "the pulse." will either bloomberg's headquarters in london. i'm mark barton. >> russia's prime minister has been speaking exclusively to bloomberg saying his country is being pulled into a new cold war with the u.s. and its allies. this wasore, i'm sure

a direct file nation of clients. individuals trusted those payment systems. >> the army chief said the move is not a coup, and that people shouldn't be concerned. thailand's stock index dropped for the largest amount in two weeks after the announcement. say the offernot was hostile, but he said he would not call it super friendly. certainly, we did reject the offer of 55, but we had other things that concerned us also that we did not get resolution to because of the hurry with the bid itself. as we stand right now, this is

the last and final offer from pfizer, and that is what the plans are. are you getting the feeling that the deal is dead in the water? >> the deal is not 100% dead in the water but it is very unlikely at this time according to u.k. takeover rules. there are a few things that could happen under unusual circumstances by which pfizer and astrazeneca could once again speak. >> if another party makes a bid for astrazeneca or it unveils a drug that suddenly is going to change the value. >> exactly. >> those things looking unlikely now. >> the stock plunged 11% and is down again two percent today. pfizer shares were actually higher yesterday because the logic for pfizer is still very sound. they will pay much lower rate if in domicile sere.

tom -- domiciles here. bristole are mentioning meyer and squid. >> those are in the u.s.. >> let's talk about u.k. inflation. we have inflation of course in up once is creeping again. it had been on a downward trend. accelerating more than forecast. getting a boost from easter last month. today compared with economists forecast. inflation creeping just up. just below the bank of england's

target number of two percent. of course the report does expect inflation to remain at or near that level for the next two years. berlin's unfinished airport is d. ourquestione international correspondent hans nichols is at the berlin air show. good morning, hans. >> good morning, mark. i was tried to speak over the roar of the jet engines behind me. a whole phalanx of planes behind me. perhaps most interesting and qatar.c is the a350 from germany hasn't contributed its full amount to airbus's production of the a350. which is with airbus ceo fabrice bregier. they need to put their differences behind them. there are a variety of differences, namely between some

of these gulf state carriers and berlin. they need to open this airport, but perhaps more importantly, they need to increase the number of slots they have very it right now, emirates can only lead in dusseldorf, hamburg, frankfurt and munich. i don't have the license to land in berlin. their message by being here is saying look, we spend a lot of money on airbus planes, we need to be able to land them year. here.d them a euro fighter to feel your wheaties in the morning. take off, jet engine i everyman gets a giant smile on his face. s for getting han

through that. >> you know it also is noisy? an espresso machine. avazza aims to make the u.s. it second-biggest market in five years time. withe joined from milan the first interview. planstalk about expansion in the u.s.. you imagine seeing yourself in a s? of starbucks coffee chain? can you hear me? >> just repeat please. curious about your

expansion plans. describe to us how you see la vazza growing there in the next few years. , the u.s. is the second market after italy. there is a huge potential for our brand. it is a market that is growing four percent-five percent. it is five times the size of the italian market. we started with a partnership -- while we're going there to have many different projects. we want to introduce the filter range in the u.s. market. the level of investment that we are going to do is starting from advertising. is to have an

important future in the usa with joinpany that will have to hundred $50 million on the usa market. as you know, master blenders recently bought a coffee unit for $5 billion. the number two coffee company after nestle. how much of a threat do you see this new company? >> look, i always say to my people that we have to know that the market is going in a consolidation process. in ald say that we are very distinctive position, a very unique position worldwide. if we see all the brands of vazza is a worldwide

brand. we have to be sure to grow the company trying to create in the future. in 10 years time, a 2 billion euro company. we are tried to say that we have to deal with this guy, try to be seeded with them around the table, looking with them at the menu and not a coming a part of the menu. i will say that the coffee up on the beerg segment and many other segments. as an italian company, we have to face it and look at it. knowing that we are in a strong and distinctive position. >> right now, starbucks is in the matter -- as in the middle of switching gears. when lavazza day

actually gets into t? >> sorry, i didn't catch your question. can you repeat? >> i am wondering if by any avazza willthink l expand into t the wake starbucks is doing in the u.s.? >> no. it is not part of our strategy. we are trying to concentrate on our core business. tostill have a lot to do grow our core business before you move somewhere else. i noted data from the meaningful brand index shows vazza ranks seventh in the top 10 of the most popular global brands. vazza soit that makes la enduring? why are you not number one, by the way? i tell everybody that

there are no are not many companies that can say since 1895, next year will be 120 the samehistory, it is family roasting coffee and looking after quality, tradition, heritage and the company. coffee.rom the land of remember that in italy, one or two cups of espresso cappuccino vazza cup of coffee. what makes us distinctive is that in a hundred 20 years we only do that. maybe it is not enough, but it is hundred 20 years that we concentrate our efforts on the quality of product. worldwide, this is something that has been easy to recognize. a great slogan the more it goes down the more picks you up.

-- the more it picks you up. >> marks and spencer rockets continue to drop. we, three years into this plan by mr. bolland and profits still declining? >> it is the end of the plan. it is not exactly bathed in glory in its final year. profits down six percent. lowest since 2009. saw one billion pounds in sales. now they're down at about two thirds of that. marc bolan's not getting the grip of things. sales are missing their target. even though this is a company that has thrown money at trying to turn itself around, trying to regenerate. >> is it working or not? >> no. underwear wise, still strong. i wouldn't particularly go in and buy my suitor jackets there. it is not quite lured and the

younger buyer in particular. >> you have to go for the top end of the next generation, .hich is the 38 to 42-year-olds that is the marketplace really should be fighting for. >> they're very strong in suits. it is the clothing that has been the in the armor. they say positive trends are starting. last -- the best corner the best quarter last quarter. going to get more profitable. this is what people will use to measure mark boland. but delivery and handing cash back to shareholders. they're going to cut spending overall. internationally, sales up six percent. online, sales up 22%. >> any to take a cue from j.crew.

>> coming up, our middle east editor elliott gotkine has more. >> if you go to my twitter handle and click on the name there, you will be able to see a live stream of this interview as well as seeing what we get up to during the break. ofill have the founder yevvo with me after the break. ♪

we're not talking about volcanoes, we're talking about vvo.al media phenomenon ye our middle east editor elliott gotkine has more on the israeli start up. elliott, good morning. >> good morning to you, mark. i'm with the founder and ceo of yevvo. his name is ben rubin. . we do is you press a button and everybody that pushed tou is being their mobile. with one click you go live and one click for your followers to

tune into whatever it is you're streaming. have 100 somey we people watching us via yevvo right now, except via a different angle. what is your business model? how are you going to make money? anyone to to allow stream, to browse and interact in real-time time with this kind of content. and you created platform that allows hundreds of thousands of people to tune in to one phone of a person, you empower people, the people become the new tv. we want to own this media. >> your car to completely kill tv, but you raised more than $4 million. where do you go from here? i heard a funny story about how you manage to get that money in the first place.

>> the first round i was speaking to one of the notable angels here in israel. chter he finished the pit there are mixed emotions. i entered this taxi and the guy had a karaoke machine in the taxi. microphoneed me a and he had a microphone and both of us sang karaoke. and i went live and the investor who had the early alpha version, tuned into the identification and he got it. you got what it means. >> your voice to and put them off, which is good. abuse this and live stream bullying in a school or other things that are not to be on air. how do you have any control to prevent abusive or illegal material going live on your system? technologyevery new

introduces new challenges in terms of abusive use. what we do is allow real-time people to flag content. a very goodve community team that makes sure naturalunity stays very and not abusive. >> ben rubin, ceo and founder of vvo. i'll head back to you in london. >> thanks, elliott. we are back in two minutes. ♪

>> in today's new energy company losses due to extreme weather are on the rise as the cost of global warming kicks in. cdp is a nonprofit organization working to make roddick's sustainable. we were just speaking to the ceo he is worried about climate change. which sectors would you say are at most risk for climate change? >> some sectors are most likely to be impacted. that will be quite severe. any sector with an agricultural apparel,ain, food,

retail. electric utilities can't move. they are impacted. insurance companies. to the increased the cost of premiums or do they take the hit themselves? >> what is the cost of all this? >> highly significant. hurricane sandy added $50 billion to the new york economy alone. hurricane sandy cost $431 million just from one event. all this aggregates up to be very significant to some companies and of course to investors. >> some might be listening to this and say that some people think it is a result of climate change. others would say it is more extreme weather. either way, what do businesses do to alleviate the costs? >> first of all, it is

significant and we have to tackle it. all the scientific community agrees that it is caused by humans and it is impacting us now. what do we do to tackle it? the best way to reduce greenhouse gas emissions quickly, because that will be the cheapest was cost effective way of dealing with it, rather than letting the cost of your party scene increase. >> are the risks current or are they looking ahead 1-5 years? risk of becoming more that is jumped to 45%. that is because of the events that are happening and the increase in offense. >> what is your company doing to mitigate these costs? google hasre saying spent a lot of money. should there be moving to iceland?

what should businesses be doing? one is reduce energy. reducing energy reduces costs. it is a win-win for business and the environment. the second one's climate change is here. they have to build resilience plans buried what are we going to do when these events increased in frequency and severity. how is it going to be impacted and how will we cope with that? >> thanks to you, paul. the first word is up next. for our viewers, the second hour is coming up. we have more from our exclusive interview with russian prime minister dmitry medvedev. prospects of this imminent gas deal that could be signed between russia and china. >> the message from him being that the u.s. is pulling russia back into a new cold war. exclusives,bject of

another exclusive chat with the .irbus ceo fabrice bregier stay with us for that.

>> we're slowly but surely approaching a second cold war which nobody needs. >> russia's prime minister speaks exclusively to bloomberg in an in-depth interview. >> credit suisse agrees to pay two point $6 billion in penalties for helping americans evade taxes. urges -- to work towards a strong euro. we have that exclusive interview. ♪

good morning to our viewers in europe, good evening to our viewers in asia and good morning to those just waking up in the united states. >> this is "the pulse" live from our bloomberg had quarters in london. we will talk to ryan kilo death -- ryan chilcote from moscow with the details. ryan, this interview comes at a very interesting time. it looks like tensions are easing, nato and the u.s. both saying they saw signs that troops are pulling back from the ukraine. what was the message for you from medvedev? >> this was the first time that the prime minister has really talked about sanctions. his first interview with an international media organizations since the sanctions were imposed against his country. he effectively said that this standoff with the west could lead to a second cold war.

to put it simply, no one is happy about sanctions since they're always a sign of s. you probablyon noticed that we have not commented on them a great deal or responded to them harshly. we could cause some unpleasantness for those who are imposing them. sanctionsonest, the are wanted by politicians who use them to reinforce their positions and demonstrate their power. for example, president obama needs to show the congress that america does not fear russia. if anything happens, they can hurt us. they knew to show that the u.s. president can make tough decisions or rather that he is doing everything the senate is accusing him of not doing.

the situation is somehow different for europe. >> speaking about president obama, since you are the author and architect with president obama of the reset in relations, are you disappointed by how president obama has handled this >> is? >> yes, i believe president obama could be more tactful. some decisions made by the u.s. administration are disappointing. i believe there -- the agreements that were reached in america are useful very dumb very sorry that everything it has been achieved is now being eliminated by these decisions. basically, we're slowly but surely approaching a second cold war that nobody needs. why am i saying this? the competent politician knows how

to make reserve, careful, subtle, wise and intelligent decisions, which i believe mr. obama succeeded at for a while. what is being done now proves that the u.s. administration has run out of those decisions. >> meanwhile, we also talked about visa and mastercard which are about six weeks to decide whether they want to exit russia before facing hundreds of millions of dollars in costs to stay in the country. those costs coming from the russian legislation that would come into place in july that would effectively force them to provide collateral with the russian government against their operations here. these and mastercard to client service to some of their credit card customers in this country on the back of sanctions against two banks, the first time russian banks had ever been sanctioned. it is a short suspension and in most cases a resume services.

nonetheless, the force of russian government or encouraged them to come up with new legislation. something the prime minister really wanted to talk about. he told me would like to visa and mastercard to stay here. >> a great number of our people are used to using foreign payment systems, mary visa and mastercard, but also american express. other electronic payment systems are also widely used. i will not be focusing on the sanctions as a political decision which will be considered an act of harlem and ornamental garden anglo-saxon law. of ann ordinary holder international bankcard. to be precise from russian card issued by a foreign payment system. by the way, there are around hundred million tons of this card is country.

like to stress that i do not have a relation ship with a foreign state. i have a relationship with the bank that issued my car and it never occurred to me that my payment depended on the political stance of a foreign state. therefore, i would like to know mastercard -- and threat to did was a his clients. would be a lawyer, i glad to take this payment systems to court. >> aren't you concerned that visa and mastercard, as you said yourself, were just following orders in a sense from the treasury in the united states? they could leave the russian market. >> i would like to reiterate, we do not want these are mastercard to leave russia. overall, our event has been quite productive.

however, before taking fast decisions, those companies should remember that fast actions undermine trust. >> very high stakes in this dispute, not just for visa and mastercard, but also for russia. the vast majority of financial transactions in this country, not just credit card payments, but also interbank payments, go through visa and mastercard. >> a great interview. an exclusive with dmitry medvedev. one can only wonder their thoughts on american express. waiting for president putin to sign the gas deal in china this week for gazprom. >> credit suisse is pleased to helping americans evade taxes. joining us now from zurich is jonathan ferro. stay ones brady dougan as chief executive for now? >> is the question we all want

the answer to, isn't it, mark? the big man survives another day. the pressure on him does not go away. the spotlight on the way credit suisse conducted themselves could not be brighter. a couple of questions spring to mind. why did ubs pay a third of the fine that credit suisse are paying. havehe executive team handled this investigation better? of the u.s.opinion attorney general. >> they failed to take even the most basic steps to ensure compliance with tax laws. when the bank finally began to feel pressure to correct the legal practices and comply with the law, as a result of the justice department's investigation of which there are notified in 2010, credit suisse failed to attain key documents, allowed evidence to be lost or destroyed, and conducted an in adequate internal inquiry.

>> mark, eric holder calls this an extensive and wide-ranging conspiracy. a wide-ranging conspiracy that nobody on the executive team, including the ceo brady dougan, new was happening. >> is this guilty plea anything more than a symbolic gesture? they haven't had to hand over any of the names of the people who were evading taxes like ubs. >> it is symbolic of the sunset is a big warning shot for other banks that may face a similar fate. on the business consequences, it is not clear. brady dougan says he has not seen the material. you see -- he still sees clients doing business with them. some of those big clients, including pension funds, will have internal rules that prohibit them from doing business with any entity that is pleaded guilty to a crime. when we first see a sign of what

could happen here? look out the following quarters earnings season and see if you see any client outflows. that might be a clue to the fallout of this. if you want an answer, i can give it to you right now. it will take time to play out. > thank you, jon. >> a lot of people are wondering whether this will be the model that is applied to bnc. ais truly does mark turnaround point for the department of justice. it is the first criminal conviction of a banking more than a decade and what they're trying to do is strike a balance. the door to call it a crisis or see what happened to arthur andersen were 85,000 people lost their jobs. they have been under a lot of pressure to show they are not just letting banks go off unscathed. it? >> fine line, isn't either way, it looks like brady dougan is staying. &a. ht, m an

>> for more on what is going on with the british carrier, i will bring in our european business correspondent caroline hyde. the trends don't look right. -- don't look great. >> we're not seeing people spending, splashing out. wearingeeing people contracts, turnover. we haven't seen growth in service revenue for a year now for vodafone. it is the second biggest mobile carrier in the world. clearly, what is more worrying is next year, they're telling us

and will continue to deteriorate. see, charges being taking in germany,pounds spain, portugal, czech republic, romania. all these countries are very dependent. they're trying to woo us all in, using faster internet. how they do that? by spending greg. $19 billion, project spring is what they're calling it. you have to build those cables and the broadband infrastructure. as an independent vodafone hold its attraction for an analyst/investor or not? does look like at&t may be looking to make another bid. the grand plan of at&t was to come across atlantic, going to europe. in stead, they have to fight

fires at home. snap up directv, 48.5 billion dollars to come against the likes of comcast and cablearner were forming a juggernaut. for them it is content rather than coming across to europe. because cut the price m&a less likely. >> will bring you our special conversation with the chief executive of airbus, fabrice bregier. stay with us for that.

♪ >> list check in on the currency market. inflation got a bit of a boost last month. easter giving a bit of a lift. more than economists forecast. governor mark carney says the price growth is benign. we will see if investors believe that area corrects it is time for another bloomberg exclusive. has a ceo fabrice bregier message for mario draghi. we spoke to him earlier at the berlin air show. we have a large backlog. 5500 aircraft.

we have decided to continue to ramp up our production. we will increase production by 10% from now to 2060. the trend is globally still very positive. >> the strong euro is hurting you. should the ecb be doing more to support the currency? advocates what we already for a very long time. you can't have all your investments large -- largely driven by the european currency. you can't have an exporting dollars and be competitive if it is around $1.40 per euro. to loweringuding have theest rates to

euro as competitive as the u.s. dollar and the yen. with the japanese bank did, i think the european central bank can do as well. >> you need to see the euro at 1.35, 1.30? >> i think 1.35 is appropriate. >> remarkable comment. 1.25, that will be tough to get to. >> look at the yen. as devalued about 20%. it would just mean a reduction of 10% of the value of the euro and still 20% higher than when the euro was introduced. >> behind you is your a350. you have landed here in germany. contributing to the a350 project. why did you bring the plane here? do you expect germany to contribute? >> is not really true, germany contributed archly. than 20,000 people

in germany. i have 4000 people working on the a350. they all deserve to see this fantastic aircraft heard >> do you expect germany to make its full contribution anytime soon? >> there is a new government and want to enjoy excellent relationship with germany. we need their support. the aerospace business needs the support of the government. this is why we are here and we are showing what we are very proud of, the a350 and he. a peacee a350 is on mission here with the new government. >> is about to finish development hardware moving to certification. we are not focused on anything else than this goal. >> when we talk about your other line, your big 380, is going to get some stiff competition from the new boeing claimed territory going to do to update the 380 to make it competitive? >> we see competition. competition because it

boosts our own innovation and tivity. we see something that is fully supported and subsidized illegally by washington. you will not believe it, but owing will get more tax breaks than the development cost of a airplane.n of the obviously, there's something wrong with this illegal support to the 777 x. boring really -- what will your company do to compete? >> there are discussions. there is also reality.

the discussions will take some time. we will benefit -- our competitor will benefit from the subsidies. the 380 is a fantastic aircraft. our customers are very happy with it. bought 50 aircrafts in november. this is what counts to me. >> you want to get your full airline models in here. talk about the 330. are you going to put new engines and 30 echo unless you expect this to cause it was timeline? >> it is a bit early to answer. ushad many customers telling the 330 is a fantastic machine. it is extremely competitive. can you improve the turbine with new engines? we started to study it and we will come to a decision probably this year. year early or mad? >> it takes normally close to one year to secure all the

parameters, to analyze them and to decide whether we launch or not such a project. but thank you very much for your time. i appreciate it. >> hans, tell us about germany's relationship of airbus right now . >> it is a little strained and you're are the ceo talk around that. just underneath the wing of that a350 over there, angela merkel will be speaking any moment now. it is a question of how you repair the relationship, not just between airbus and the german state, but what germany does overall to try to convince airlines that they're serious about opening this airport. this is the new berlin airport. you see a bunch of military jets out there, transport jets. what you don't see is commercial jets. it was supposed to open in 2012, it has been pushed off and pushed off. the latest expectation, you

won't be able to land here on your private learjet until the year 2017. some fighters are coming in. let's hope our coverage has been positive and they are not going to train their sights on me. mark? >> thanks, hans. we are back in two minutes.

>> is time for the new energy

headlines. india's new prime minister modi plans to use solar energy. that is according to the new government plan. is also boosting solar power. it wants to limit to mystic fossil fuel consumption. officials say the nation is looking for a hundred billion dollars to create a solar industry by 2030 two. saudi arabia is the world's biggest exporter of crude. >> the danish manufacturer has a fourth project with the american developer. next, a bloomberg exclusive. we'll bring you more from our conversation with the russian prime minister dmitry medvedev.

>> you can always follow me on twitter. still the sign of marks joining twitter. we are making a little bit of progress. more on that medvedev interview into. . in two ♪

>> welcome back to "the pulse." live from london. >> here other top headlines. the chinese army and government are denying charges that five members of its military store u.s. trade secrets by hacking into corporate websites. chinese indicted officials and laid out the case that they have been involved in extensive espionage of commercial secrets. china says it has been the victim of u.s. espionage. hai army says it

has imposed martial law. astrazeneca's chairman has told me that he is surprised by hostile offer. >> it is the end of the road for this engagement. and certainly at these terms. we had other things that concerned us that we did not get resolution to. as we stand right now, this is the last and final offer from pfizer. that is what the takeover panel says. >> a final offer could mean a final offer on the takeover panel. in thece is all language. pfizer says this is their final proposal, but they could come back with something else. there are legal technicalities

where there could be wiggle room. the final offer from pfizer. the language indicated that the ball was in their court. they said they would not go forward. it is likely to fail. there is still a very small chance it could go through. >> what did they think of their chances of staying independent? what laster zeneca do? could become -- what will astrazeneca do? the to become a target or a creditor -- could it become a target or a predator? >> they have come out with several promising cancer drugs in the past couple of months. bit moreed a little money. the question for pfizer is what do they do since they have not been able to buy up astrazeneca? people have mentioned other names. the problem is that they are based in the u.s. b the logic was that astrazeneca

, with ad in the u.k. lower corporate tax rate. >> investors believe there is not going to be another bid and that this bid will not be successful. he said he would recommend 58.55.ion if it got >> he said, why did you lay out , why did- i said you lay out a price? he said it was for shareholders. >> shareholders were hoping that they would at least enter into discussion. saidiggest shareholder they would be fine with it. >> it depends if you have a short-term or long-term horizon. >> do you believe that these projections for the drugs that astrazeneca has in? let's bring in more with the

russian prime minister. russia is close to signing a contract to provide natural gas to china. today tois in shanghai try to seal the deal after more than 10 years of talks. it is not because we do not attach much importance at this time. first off, every country or group of countries, including the european union, has the right to diverse up either supply. we do not attach much importance to that, simply because there is no viable alternative to russian supplies. we happen to think that we should have an opportunity to deliver gas not only to europe, but also to asia. i would not look for any politics in that. i have no doubt that this holds great promise in the future. we have enough capacity and gas

to send supplies both east and west. if we look at the worst-case scenario, purely theoretical he, -- theoretically, western supplies can be sent to china. that is a theoretical possibility. >> if the question was to move oil from russian supplies? -- move away from russian supplies? let them give us the calculations. as i understand, even if this is done on a balanced basis, the price of supply from the united states of america would be 40% more expensive than russian gas. hear more from that exclusive interview with the russian prime minister later this hour. minutes, it is

"surveillance" with tom keene. let's start with medvedev. any reaction? >> i think it is a further discussion, as we saw with foreign minister lavrov the other day. putin is speaking directly to the chinese. he is looking south and east. we will take a real look at these five military officers and china. -- in china. we will talk about china and about the asia watch. jonathan ferro will join us out of zürich, your jonathan ferro. we are on the brady dougan deathwatch. we will see how that goes. >> i know you are an avid social media user. you make wonderful videos. are you looking at the go pro? >> i think it is very

interesting. in see it everywhere here new york city. i had one almost take my hat off in central park two or three weeks ago. it is another part of that animal spirit. we will look at the linkage of m&a frenzy. an can it be a further jumpstart to that excitement to get nominal gdp going? >> are thanks to tom keene. looking forward to it starting in about half an hour. >> manus cranny is here with more on the markets. 1% differential between here and all time flies. -- highs. the minutes from the u.k. will come up tomorrow. we are running ecb squawk watch. we have had some comments from the spanish.

the spanish central bank is saying that inflation or the lack thereof is one of the biggest risks. when it comes to adding capacity and future long-term view it is all about disposable income in the antipodes. adding capacity. over 5%.up the market is taking that nicely to heart. we are also wrong -- on fed squawk watch. the minutes come out tomorrow from the federal reserve. u.s. equities are a tad lower. reservely federal governor and the new york federal reserve governor will speak later today. that will give us a little bit of direction in terms of the u.s. equities. currency, it is not exactly ripping along. on the back of those inflation data. inflation coming in a little bit higher here in the u.k., 120%.

-- 1.8%. no great shakes. -- eye on aussie dollar. the australian central bank rocked the reference to the currency in their minutes. -- dropped the reference to the currency in their minutes. back to you. , toying with the idea of a spontaneous trip to sin city, i'm talking las vegas. ♪ the be back with chief operating officer.

>> crowd funding is big business. has helped fund more than 60,000 projects with more than $1 billion. it is not just the fundraisers that are cashing in. >> 3, 2, 1, action. >> meet the kingmaker of kickstarter. he makes videos for crowd funding campaigns. having him on your team can translate into megabucks. >> we help them get from nothing

to a huge amount of money. some projects are so cool that they will do good without us, but we probably double or triple them. >> recent successes include a smartphone controlled paper airplane. the latest campaign -- >> curacao. -- here is how. not just the startup founders that are banking on the videos making their crowd funding campaign a success. the companies producing the videos also have a stake in it. they will get a cut of any money raised. >> it still takes some cash upfront to help pay for the shoot. i would gladly pay a lot of money when you are successful. having a great video is probably

the most important thing. goodan have a very product, but if you do not tell your story right, maybe nobody is going to look at you, nobody is going to pledge. >> success is not guaranteed. sleevely may not hit its target. these cars have got off to a slow start. there are risks in the business model. faras been so successful so that he has quadrupled his work in three years and plans to open an office in san francisco or new york, where indiegogo and kickstarter are based. let's keep talking tech. there is more to las vegas than britney spears and celine dion. company'sned by the

chief operating officer. peter, thank you so much for coming down. no offense, but it is a pretty obvious idea. everybody is looking for things to do. it is a crowded space. why is your app -- why hasn't been able to stand up? -- has it been able to stand out? >> it is an $80 billion industry. people ale to serve list of great and exciting and relevant things to do. we are 100% mobile. we have an ed -- easy to understand purchase. these are only events in the next 48 hours. get -- if you want to see bruno mars in las vegas tonight, we host different things. >> do you get the stones

tickets? >> we will have stones tickets on our app. 80% of our bookings happen within 48 hours of the event. we work with 800 event partners. >> these are the tickets that are publicly sold. >> we will source from a number of different locations. >> i am trying to figure out if i can get stones tickets. >> we will make sure. [laughter] >> how do you get the stones tickets? number of with a different promoters and venues and ticket providers. last 48old them for the hours. >> we will be able to display stock that has not sold out. >> what is the business model? >> we get a commission for everything that gets old through our app -- sold through our app.

it is about personalization. we are able to display relevant things to do. you double tap and you are there. >> traffic, what is it like? i was the business? >> -- how is the business? >> we are launching vegas today. we have been in london still longest -- the longest. case ine a user demand a 40 hour. -- 48-hour period. there is no one servicing the las vegas area right now. we are spontaneous. >> you use it on your phone. >> look at that website, look at the phone. there is a 45 second video on how to use it. it is very simple. >> it is to taps and you go to the event. that is why i think it is great.

names of your big backers. how did you get these guys on board? >> they use us. decided he wanted to do something and he downloaded the app and used it. sayingt he got in touch he wanted to invest, absolutely. we have a great set of investors. this is enabling us to expand. stephen fry loves the app. >> what is the plan? what is the big ambition? newe ask this question in york, london, san francisco, vegas. there are many other cities. as long as there is event supply. there is easy demand on the other side. we want to make sure that we have enough content to get the market launched. it is working. >> you have this great information on people and what they like to do and what they like to do socially.

do you have other plans to monetize that data? you could position yourselves as a data website? >> absolutely. >> valentine's day. do you know how to download apps on your smart phone? >> it is a beautifully created app. a lot of people use it for spontaneous decisions. >> what is the big plan? >> the big plan is making sure we grow the demand which is becoming huge. building up our supply chain on the other end. >> i want to go to who -- i am already going to aerosmith. best gig in town. >> wow. >> remember those stones tickets. the eu accuses jpmorgan, hsbc

, and others have rate rating. we will have more of that breaking news coming up. ♪

>> let's take a look at what we are watching today. big news breaking.

jpmorgan, hsbc, and others have been accused by the european union of rate rigging. >> there has been a statement of objections in regards to acting in the form to rig rivals, the interbank rate in terms of european interest rates. one. the people who took part in it -- >> six firms agreeing to a record amount of buying, 1.7 billion euros. you wonder if those banks that did not agree to those fines -- >> given the climate at the thent, i suppose

preparedness for regulators to paribas onkes of bnp some of the issues there, perhaps they are running a risk. 1.7 billion euros. that was back in december time. have had theanks opportunity to respond. >> it is not over yet. this goes on and on. >> the commission made a manifest error of assessment in the way in which it calculated the bank sales, they said. this refers to the amount of business that you would have done in the interbank market, in terms of loans and agreements. is how you assess the amount of business in terms of the interest rate markets. they are saying there has been a miscalculation or an incorrect assumptions. given the climate of where we are with regulators on both sides, i need to be fair and equal with this, the climate and

the temperament is rising, in terms of what people want to see from regulators in terms of proposals. hsbc came to an agreement in regards to sanctions in the u.s. >> litigation is something that all banks are having to deal with. deutsche bank raises a whole heap of capital yesterday. >> 8 billion euros. >> the co-ceo did say he is not selling that new steak and he is not raising cash from the qataris and others because litigation is going on. >> credit suisse has sewn it seed. hsbc have been accused of forming a rate rigging cartel. credit suisse has pleaded guilty

for its own reasons. that is separate. brady dougan is still sitting comfortably. say comfortably. let's be clear about that. he keeps his job at least for now. tong forward, the point build on manus' story, has the u.s. set the tone for how regulators will be with investigations in europe? they got the guilty plea. credit suisse is the first and the long time, probably not the last. >> any euro fighters flying over you, hans? >> the next time a euro fighter by, there are two overarching questions. will the berlin airport ever open? 2017 is one of the best case scenarios. convince theriers german government to open more

spots so they can service this airport? >> banks have been accused of colluding to rake interbank lending rates. >> thomas up next with surveillance. see you tomorrow. ♪

the pfizer acquisition of astrazeneca is near collapse. -- bradygan" its ways

dougan and credit suisse regret past misconduct. charges of intrigue industry and espionage for china. good morning, everyone. this is "bloomberg surveillance." me, scarlet fu and adam johnson. important breaking news. the european union is accusing jpmorgan, hsbc, and credit agricole of rate rigging. the three banks did not sign onto the settlement deal last year. it looks like the european union is charging formal charges as a result. over each region having fixed rates that everything is based off of. the rate rigging affects everyone out there. >> the subtlety of this