our europe editor is standing by in berlin. futures are inching a little bit lower. >> i think it will reflect on yesterday as well. everybody is talking about the exit. not assumed we are going to get any division, but we are waiting to see what these comments are. understand they could face a fine of up to $5 billion in the united states. >> i am glad you said could, because it hasn't been said yet. the final number will come in next month, but this just seems to get acre.

-- get bigger. last week we were reporting it was only $3.5 billion. they have set aside $1.1 billion. i will give you more details about how this could affect the details. >> the stocks are down at the oment. let's turn to luxury goods. stocks are a little bit lower. >> sales up 17%. i knew chief executive christopher bailey taking over the reins. the chief creative officer talking about japan gaming control. gaining control also up makeup distribution. with fragrances, locking in the aspirational buyer who might not be able to afford a 4000 pound coat but can afford a 22 pound

lipstick. still concerned about the pound. these macro issues will have an effect on these companies, especially when you are a british exporter, such is are buried. still very certain they will have growth and growth will be stable for the rest of the year. >> let's cross to tel aviv and elliott gotkine who spoke exclusively with the ceo. >> i did. he has been in town to talk about the opening of a new research laboratory, trying to go back to the roots of this company that invented the telephone, tapping into the innovation to help make all could tell lou sent -- alcatel startup andlike a more nimble. i will have that in about half

an hours time. >> i look forward to that interview. are often running. what is going to be the focus? >> the central bank has dominated. bank of england minutes are focused through the morning. futures were a little lower through the morning. this is your market open. the dax down by three. the cac 40 down as well. two days of losses make it three days of losses. coming off the back of five weeks of gains. i am going to take you straight to japan. the bank of japan does nothing. the yen getting stronger. the dollar getting weaker. japan there were big bats might not hit the inflation target of two percent and the bank of japan would have to do more. he is giving no signs there is more stimulus to come. if you are betting against him

you are betting against again as well. outbank of england minutes today. this is the one to watch. the division between members about the amount of spare capacity in this economy. they think it is going to drop to 78 cents. that is a stronger pound against a weaker euro. >> one company on the move, the shipping and industrial giant raised its 2014 outlook for underlying profits. for a little more detail, the chief executive joins me on the phone from copenhagen. us. great to have you with you have raised for your bad news fort is investors. what i really want to know is do you feel the recovery taking

hold around the world is firmly entrenched? what is your view? >> we had a slightly more negative view then the consensus in the market. below still a little more what is consensus. europe we will be below one percent. it is good conditions for there is enough business to do. that is why we deliver appropriate results. >> where was the standout? i am trying to get a sense. where are the spot for us to it is interesting. we have seen a good development.

it seems as if the export out of europe is improving. we are seeing not only the usual like waste paper and scrap metal. we also see car parts and manufacturers. we're are seeing a change towards domestic consumption. we're seeing southern european countries becoming more competitive in a number of export goods. good signs.me >> that sounds good. your volumes are rising. just give me a flavor of where they are rising to. rates are down by five percent. what i really want is, have we seen a bottoming out in terms of rates? it has been a tough market in the past five years.

>> we had continuous pressure on the freight rates, and it's only because we have been restructuring the business and taking a lot of cost out and concentrating on delivering a good product to the customers that we have been able to stay as profitable as we are today. unfortunately, i don't really see a change in downward rusher downward rusher on rates. we hope they will stabilize. it looks good for now, but there is too much capacity in the market, and we have a number of weaker players putting more so it will be a difficult few years for the that leads me to ask you, are you going to have to take more costs out of the business. . arecutting has been key

there more cost cuts to come from the business deals? we have not sold to reduce cost. we sold to redirect investment into the four big business units we have. that is a trend we will continue, but we have invested cost we continue to take out because we are in a commodity business, and we need to do it, but i am sure we will also succeed in that. >> talk to me about the business. we know you are diversifying and rebalancing. next 10ness for the years. your business is a one-year and two-year business. give me a sense. what am i going to be buying. as a long-term investor, what am i investing in? is there going to be further rebalancing away from the container business? >> we will continue to invest more outside the container business in relations to the

see aninvested. you will increase in wait outside the container business, but we will invest in the container business , toptimize our net work grow with the market. that is the strategy. we are looking to grow the oil business. we will certainly grow the port business because we believe there is good opportunity for us there. also, we have plans to further grow drilling and offshore supply business. we have plans in place to diversify, and i think created for really strong legs for the group -- created really strong legs for the group. we should be investing in diversified but focused conglomerate. ceo?at is your sense as this level of tension we have between russia and the united

states and europe in regards to ukraine. does it play into your discussions at a board level? have you discussed your exposure to russia and how it might impact trade and the business? we are invested in russia, and we operate ports. we have a big shipping business in and out of russia, and we are happy with that. at the moment we don't see any negative signs, but if sanctions spike, it will have an impact on trade when it impacts the russian economy, but we are not politicians, so we will do the business that can be done, and we are confident we will do well in that. me a sense. you say it is a combination of you and a number of other shipping lines that america has just ratified and agreed you can do that.

what is it going to mean for the bottom line when this agreement actually comes through? because wesave costs will save on larger vessels. we will have more direct sailing . it will be good for you missions. -- for admissions. it will increase our .ompetitiveness that should improve profitability somewhat. also for the first quarter we saw an extremely good trajectory. we are outperforming the average a prettyrket with significant margin. we are confident we can go alone, but we think this will be an additional advantage. >> you have done a lot of work on green shipping. of where get a sense

you are over the past two years. it. weontinue to push think it is win-win because we can reduce co2 emissions quite a showing the way for the rest of the industry, and in doing so we also cut our consumption so we get more competitive. we continue to invest in that and the newest vessel we are taking delivery of now uses 50% less fuel per container than what we used to a couple years ago. there is a lot to be done, and we still think it is very exciting. you with mehave this morning. that was a fairly all-encompassing interview.

joining me for his perspective on the markets is the chief investment officer who oversees more than 2 billion pounds in assets. great to have you with me. listening to the ceo who had a fairly diversified business, and must he music to everybody's years. it is coming out of europe. all around recovery. it a cautionary tone? what is your take? >> i thought the european story is interesting in terms of the increased cohesiveness of southern europe starting to work and trade starting to move. we are seeing that in gdp numbers and domestic consumption. that is interesting. on the flip side machine sales were down 14% into asia and latin america, so you have got big drops in the investment side of mining and that is the old

industry driving the emerging markets, which are starting to tail off. it is a transition, and this is a good sign in terms of how that transition is going. >> the top line of your agenda is there is no significant risk of a market correction. good.he data is really convinced about these markets? >> we have rarely seen a big corruption when the indexes in an expansionary phase. i have looked back to the data and not found it. the pan is interesting because bmi has gone below 15. it is a japan centric story with a consumption tax increase that has caused that to some extent. he have seen a big bounce back numbers.y i think may is probably the of global gdp.

june we should start seeing a pickup. all the indicators indicate a strong second half of the year. >> stay with me. we are going to have a little more time to discuss where to put the money. please stand by. we are going to speak about the bundesbank because a board member told our correspondent that investors may not be prepared. this seems to be a theme. we have a former bank of england policy member telling us this. what did you make of the conversation? the dax is at an all-time high. what they are trying to do is

acknowledge the uncertainty in the market and keep the ability theespond to it but without potential response influencing the market. to what he said about volatility. real estate markets are pretty high. corporate bond valuations seem stretched and hide. at the same time, global activity leads to market theycipants who think don't have to hedge because they think it means low risk. fact see risk despite the the markets are calm. >> ever since the lehman crisis a lot of work has been done conceptually. we have been thinking that things through as much as we an, but could we exclude failure of a bank if it is really too big to fail without

making taxpayers pay? we are not quite there yet. we just heard to soundbites. why we care so much about what he is saying is because he is going to be on the financials supervisory board for the bundesbank and the ecb. that means he will have supervisory concern over 100 rd european wide banks. speak central-bank speak. we had a central banker speaking their own special language which you can translate. the second one was a little more populist about too big to fail. it is really hard to try to understand what central bankers are getting at, but might take for is to be prepared potential action. we just don't know how strong >> i haveickly. passed the baton of interpreting central-bank speak over to jonathan.

on a more serious note, i think this is about preparation for reality. preparation for reality in terms of the united kingdom and likewise in the united states. ecb, it looks the like interest rate meetings are going to go to every six weeks instead of four. what is behind that? is that to quell the demands of the press or the markets? >> the communications strategy is behind it. the big issue is if you meet eight times a year you could potentially release the minutes, which would give so much super his heart.o the ecb does not release minutes. the central bank does. >> we have to leave it there. chris is still with a. take more risk seems to be the

mind, youwith that in have of you. you are prepared to short a little more euro, so you begin to believe that is a position you might want to add to. >> it is difficult. a lot of people have been caught on the wrong side of that trade. it looks expensive. it is going to be key. it is an interesting trade in a sense that it is overvalued. if we start to see deflation come a concern it is a good hedge. if central-bank policy is successful they are one of the key targets. it is damaging the economy. >> i find it fascinating. in the energy space you have gone with halliburton.

what are you thinking now? selling it to the oil companies. that is what halliburton does. we have had this for nearly two years now. it has been a long story. these are the companies that are really helping to develop the unconventional sales in the u.s. >> on the tech side, there is this debate between consumer tech and enterprise, and it is something i asked people. you go with priceline. you say that is your preferred e-commerce. it is very much the retail side you are betting. >> that is a good point. interested in the equipment. on the e-commerce side priceline had nearly 40% growth. it is trading around 23 times forward numbers. to us it is a really good story.

>> i am going to squeeze this in. visa. seen the consumer credit numbers really struggle in the cold winter and the u.s. the numbers visa released were not great, but we think it is at the low end of its valuation range and the momentum should improve. >> one for the braves. great to have you with us. come back and see us soon. up, burberry beats its four-year forecast, but it's not all. we look at the new ceo's strategy coming up next.

>> welcome back. it is all about burberry. they posted results. they beat estimates. the new ceo is at the helm. caroline hyde is here with all the details. stocks down. profit beat. why? >> a little bit of caution, just slightly. it looks as though they are a little more tentative on margins. fxis all about the headwinds. the strength of the pound is not only shaving off 30 million.

it is going to knock off 40 million pounds. it is that much more material in terms of the affect. that seems to be the issue going forward. otherwise it is ready power. . profit update or said. sales up 17%. they say the focus of the growth is clear. it is japan. back licensing. they are going to be an charge of their own. beauty as well. they said they have taken licenses. they are going to be distributing their own makeup. very against the grain with what you have seen and the rest of the industry. they are in control of their own destiny. a are going to be looking at new recruit. a new female. >> you showed us that.

.he is a strong woman >> they lost the chief executive. she has gone to apple. interesting what they will bring. in charge ofe media. she is going to be a new admission at the top. >> talk to me about christopher bailey. design,ill in charge of but he is setting new trends. digital. very much they are going at it alone. also partnering with more tech giants. they've partnered with apple. now they are going with amazon. otheron't want to see knockdown prices. if you can't beat them, join

them. >> caroline hyde. ,oming up next is netflix taking on europe. they announce the biggest expansion since 2011.

>> welcome back. by administering a. cranny.manus basic resources and telecoms lead the markets. the bank of japan does nothing. zone consumer confidence is expected to rise a little bit later. the lowest since 2012. what will happen in the global economy? more talks about exit strategies. bankers, what stocks should you be eyeing?

>> three. be facing ¥50 dollars -- $5aling with sanction billion for dealing with sanctioned countries. more than many expected. it is the value of the pound that is eating into the earnings. the stock is down. i love this company. the world's largest shipping line. their stock is going higher. >> that is the scenario. >> let's give you some of the top headlines. the japanese central bank refrains from additional easing, saying that the economy can weather the impact. the contraction is projected for

this quarter. on bank is counting companies still wanting to invest. the bundesbank board member sees new risk to financial stability. in an exclusive interview, they say that generous central bank policies and a search for you -- low yield is adding to risk. >> the real estate market in some countries is high. the corporate bond valuations seem stretched and high. time, the low volatility leads to market participants thinking they do not need to hedge. they see the low volatility as low risk. this may all change. despite the fact that the market -- seekingauthorities are money for bnp. the are looking into

dealings with sanctioned countries. that is according to people familiar with the matter. the ban on transference of money could be part of the settlement. for a little bit more on the story and what it means, i'm joined by david tweed from berlin. every day, the story grows and from about the environment regulators. it is easing up. we are looking at $5 billion, potentially. >> they could potentially be even more than that. the final ruling on this is not going to come down until next month, according to people we have spoken to. it seems to get bigger. only last week, we were talking to the same people. they were looking at $5.3 billion. bnp is much more than what was considering it would be.

even when they said that last month, they might have to raise more money. $5 billion is a severe penalty. it is around about six percent of bnp market capitalization. theother thing is that authorities in the united states and the u.s. attorney in new york have been looking at similar finds in the past and they decided that this was not tough enough, considering that these sanctions and violations of the sanctions was supporting a country that was supporting state-owned -- state-sponsored terrorism. that is why the fines are so large. fines havethe past not been severe enough. >> we talked about credit suisse. arees on wall street talking about not pulling the plug on credit suisse.

this is a different story. a length of time where the banking licenses could be interfered. >> the banking license could be interfered with, depending on whether or not they have a criminal conviction. the other part of this was something that you mentioned earlier. they may have a time frame where they are banned from transactions in and out of america on behalf of their clients. shifting money in and out of the united states. that is potentially bad news. basic banking service they provide to their clients, they would have to go elsewhere. if they go elsewhere for those services, they may not come back and that is not a good thing if you are a like like -- a bank like bnp.

this is one of the reasons why -- we still do not know how far these fines will go. share prices are down two percent at the moment. they are off the market is aalization and that difference between the 3.5 billion dollars that we reported as the potential fine and the $5 billion that we reported now. a lot of people are waiting to see what the fines are going to be before. >> let's leave it there and see what the real figure cams out to be -- comes out to be. a bloomberg exclusive interview. makeent -- lucent will gains. part of it is a new research venture. elliott gotkine got an opportunity to speak with the chief executive about the plan. >> credit suisse used to be a

startup. what i am trying to do right now is reignite this innovation within the company. that is what it is about. andeed to do innovation disruptive innovation. it is difficult for big companies. i was to see us as an innovative reigniteeaning that we and reinvent. ones who invented vectoring, which we are rolling out in israel right now. >> let's talk to elliott gotkine. this is a ceo who has a mission to really turn out into the

future. >> very much. turning towards the future by tapping into what they have done in the past. he is, as you can tell, very excited. the have a research facility here. iconicll be bringing an laboratory here. they want to come out with more inventions that will shape the future. now, it is not just a research laboratory that they are him and with. .- coming with they are looking at potentially buying some amah as well. >> we are interested in innovating. that is -- also, to screen companies that we might acquire. we are proud to be opening up a laboratory in israel. labs has wonll

nobel prizes. >> they are looking to compete in cyber, an area that israel is strong and. -- in. opening in israel. >> ok. thanks for that. great interview. rate to hear what he has. that's great to hear what he has. -- great to hear what he has. ranking, to the brand google's value rose. apple's value fell. stay with us. ♪

that ive always thought learn and get better on stage. i hope that i will keep coming back to it again and again. >> that was daniel radcliffe

speaking with charlie rose. deal or no deal? that does not mean a takeover is off the table. could it be time for pfizer? it could happen this year. bankior analyst with a joins us from stockholm. great to have you with us. what is the possibility of anything happening between now and the 26? >> indeed. couldew is that pfizer close the deal. beingrse, after zeneca is direct and upfront. zeneca is being

direct and upfront. >> if we think about the overall position, maybe nothing might happen between now and the 26, do you have the view that pfizer could come back with a hostile challenge six months from now? is that your baseline scenario? , there are opportunities course, six month later, our view is that it depends on the valuation of astra zeneca. , the pipeline progress and the aspects of pfizer not being

changed. also, the pressure on pfizer to focus on smaller units. that looksindustry towards scientific leadership. >> we have spoken with a number of people. praised the ceo and staying independent. he has a lot to deliver in the next six months, if he is going to be credible in his defense. well, the investor log is in favor of them. forced.stry is

have a good way in a short length of time to move on that strategy. key to puts very together companies that are big. away in theight industrials. goes right away in the industrials. >> we will have you back on. pulse is coming up and mark barton joins us with a quick preview. gas deal. 10 years in the making. a bit of a worry. they would like to sign and seal

it. 10 years in the making and they are quibbling over price. russia less dependent on your up for gas exports and make it more intransigent, when it comes to form policy with the ukraine and other markets. that is important with the election. >> this goes back to ryan chilcote and his interview yesterday. is request -- the west pushing a new cold war. .ou are on the right-hand side but what is the difference between right and left? >> i leave that to you. we are focusing on the beauty side. they have gone in-house, when it comes to distribution of cosmetics and beauty products.

that is a unique model and we are speaking to a man from the luxury brand industry who is skeptical about the usage of amazon as a distribution channel. he says that it will have a negative impact on the brand. >> you have an interview with one of the wise men. >> these are the german council of experts. we spoke to the bundesbank member who warned about the risk and the low environment. interesting views from mr. schmidt. he advises angela merkel. he says that the architecture within the eurozone needs to be more resilient and important aspects need to be addressed. we will be asking him about the ecb meeting. will the answer any questions about it? >> you will push them along.

the recovery is the fundamental question. look forward to see you -- seeing you. will addming company services to six other countries. the ambitions and the plants. this is a cracking story. this is about european expansion. >> this is about decriminalizing some of my own activity with netflix. we will not get into that too much. the united kingdom is a country where netflix is available. it is not in luxembourg. they are considering going into this market and will be there by the end of the year. it is a remarkable story. if you look at france and germany, you have 146 million people.

overlay that to the number of people who use that internationally, there are 35 million in the united states. wants 70%-80% of the revenue to come from abroad. they have to figure out pricing structures and payments. this is an indication that netflix will become a global content provider. you have to figure out how much to pay for it. prices will be the key. thank you for that. , it is a maker cutting down the competition.

>> welcome back. i am manus cranny in london. here are some companies on the move. burberry's efforts are topping estimates. rose eightit percent. this is the first set of results from christopher bailey. bhb estimates are lower.

the mining will be affected by a strike. they told reporters that they may seek government intervention in the australian tugboat strike. they're hopeful that they can reach a deal. astra zeneca got a boost. one of the biggest institutional stockholders. others -- they say that after zeneca will earn better returns for shareholders by staying independent. blade market is dominated by gillette. one is trying to dethrone these companies. david tweed has the story. in the small town in the a new east germany,

york-based startup is making waves. >> my name is andy katz-mayfield. wem the cofounder of harry sell our own products through our website. there are companies that have been part of the industry for a long time. they charge prices that are disconnected from the cost of manufacturing. was $100tal cost million. we searchedd and all over the world to find the best manufacturer. it turns out the best manufacturer in the world is in germany. we are able, particularly owning a factory, deliver a product efficiently to our customers. we get it directly to them. by doing that, we deliver it at

an exceptional value. mean,t down here and, i you walk through the factory and immediately have an appreciation for how hard it is to actually manufacture a razor blade. the workers are here -- how skilled the workers are here. they are truly craftsman. people and the know-how that enables them to get steel into razor blades. >> a great package there. mark barton and olivia sterns are back. man,ll hear from a wise christopher schmitt. he will join them at the top of the show. that is it for me. you can follow me on twitter. @manuscranny.

london is up. basic resources, equity markets, a touch lower this morning. . .

>> first, credit suisse. now bnp. more than $5 billion from the french bank to settle its sanctions investigation. >> and an exclusive interview of the bundesbank. >> another bloomberg exclusive. up until losing -- alcatel lucent's chief executive explains why he is betting big on cloud technology. welcome to "the pulse." live from