>> the chocolate billionaire claims victory in ukraine. >> not only the >> to bring peace. >> eurosceptics take on europe. the latest projections have them winning 30% of our limits boat. mario draghi gets set to speak at the first ecb for them in southern portugal.

-- forum in southern portugal. a warm welcome. it has just gone 7:00 here in london this monday morning. we have big interviews. the former italian prime minister will be joining us for an exclusive conversation coming up after 8:00 london time. and a check on the impacts of the ukraine russia crisis. we will also be speaking with the cfo coming up in an hours time. back to our top story. elected billionaire as president. ryan has the details. poised to winut the vote. 1/5 of votes are counted.

exit polls show him winning with a convincing lead. he is an experienced politician. the minister and has navigated ukraine through various presidents. he is also a billionaire. i spoke with him just after he got off the stage. he was like a businessman and very optimistic. >> it's a great opportunity. >> to build and demonstrate --

my partners have succeeded in a short time. ukraine should be and would be a paradise not only for ukrainian people. also for investors. >> it is not investors but separatists they will have to deal with. the sundaymost of destroying ballot boxes in the east of the country. the fighting continues between ukrainian troops and separatists . have to find a common language with president putin. i asked how important it was to sit down with president poroshenko. >> i think we find a format to help us solve the problem we have with russia.

would be the date? >> presumably sitting down with the russian president. >> i think that would be possible, most probably together with our american and european union partners. real sense that many of the voters here in ukraine chose mr. parrish and go -- parrish anka -- poroshenko. you have to get more than 50% of the votes. the official count was 1/5 of the votes. he has 54%. the second vote wouldn't have happened until the 15th of june. a lot of people were concerned the country needs stability, needs a president. needs a commander-in-chief to deal with the crisis it is

facing in the east of the the violence. >> with the crisis in the east and the violence in our minds, that is one of the first inc. he needs to handle. he says he is going to visit that part of ukraine. how free was a voting? you mention some of the activity around the ballot boxes. >> it wasn't free at all. there were very few pockets where people could actually vote in the east of the country. affectivelyters were denied their ability to vote in the area, not just werese the separatists destroying ballot boxes, but in general wholesale shutting down access to polling stations. very few polling stations work. those that were open many were too fearful to go to them. it's going to be difficult to

win some type of peace. he has already said he is prepared to turn ukraine into a federalized state. it is very much unified. russia would like to see a devolution of power. poroshenka says he is prepared for more of the decisions to stay in the east of the country. it is the industrial heartland of ukraine. not unlike detroit, it is very dilapidated region. some of the problems are as economic as they are political in nature. he is ready for talks and says he will talk to anybody who does not have blood on their hands. it violence continues, and has been very violent in the lead up to the vote that took place yesterday.

>> far right parties in france and the u.k. took unprecedented first place in elections for europe's parliament. turnout was up slightly, and the result will shake across europe. hans nichols joins us from berlin. did any of the establishment parties have a good night? >> he came in at 41%. he would be almost the clearest winner and all this. notyone else had an awful, so good night. you almost have to look at who had the worst night. take a look at the united kingdom. david cameron comes in third place. nick clegg it's only seven percent of the votes. in france. 25-26%, and you look down at the , and it is mr. sarkozy's old party. then 14%.

14%. this party gets will shake brussels. the question is will it alter what brussels is doing? he tried to hand this was going to be a sign of further changes to come. >> until now, european integration always seem to be inevitable. i think the inevitability will tonight.these results >> overall it was the center-right party that came in at 212. these are preliminary. party and theht centerleft party could form a coalition to get together and run the parliament and have parliamentary president, but there is a lot that needs to be determined. parties in power need to reconcile with the fact that

they are not very popular right now and voters are apparently quite upset and willing to throw them out. >> who is likely to be the next eu commissioner? great rarity. it looks like jean-claude yunker -- juenker could get the job. it's supposed to be not binding but influence the national elections. basically you have the heads of state of those countries picked the eu commissioner president. it looks like if everyone holds could be the next president of the eu commission. >> we will have further analysis of election result in europe and an exclusive interview later this morning when the former italian prime minister will be joining the team. that is just after 8:00 u.k.

time. mario draghi is set to speak at the ecb's first for him. is this their answer to the jackson hole? >> they are certainly giving it a go. than much more important what the fed has done. probably light-years behind. what would they do today? mario draghi is going to deliver a speech. i would say even if they were not on holiday this would be the the markets. he has lifted the bar so high for expectations as to what the ecb might do. clues.ust looking for what are they going to deliver? >> what are the options available? onif we look at what is left

the table for central banks, just look at rates. rates are already at zero. you can trim both of those. >> 90% of economists think that is what is going to happen in june. >> the big question is whether for me theyond that. big question is our expectation is so high even a rate cut would be a disappointment for this market. use of the euro sounding off from around one dollar 40. much of that is on ecb expectations. what are they expecting? are they expecting a rate cut or something more? if you want asset purchases you might have to wait. that could be a disappointment for a lot of people in this market. expectations are high. >> he commented. he said people are clearly disengage.

the ecb is very mindful. they say jobs are vital for -- and jobs arerowth vital. he sees that as the best generator of peace. feels a great weight of history on europe right now. >> he think these questions being posed are thorny questions for central bankers. what is he going to do about it? been up one percent, below one percent since october. if they had a labor market that is much affected maximum unemployment, it would be way off because unemployment is at a record high across many of these countries. it'll have become this in franchise. they didn't just pose questions for the european partner. >> coming up, as mario draghi host the first ecb for him in

the hills, we will take a look at the topics that may be topping the agenda. that's next. ♪

>> pfizer is said to be near

abandoning its bid for astrazeneca. the deadline to make a firm offer arrives today. the drugmaker is expected to announce they won't pursue the bidder any further according to a person familiar with the matter. general electric pledged to keep the nuclear operations in france. .e is seeking approval last week ge agreed to a government request to suspend the deadline by three weeks. form two ventures to start making and selling playstation gaming consoles in china as competition continues. 17% stake ine a one venture and 49% in the other. videogame console makers are expanding after authorities and ban. ban -- ended a we have plenty of elliptical

news on europe. a look at the economy. berkeley senior economist joins us from frankfurt to take a look at the big stories coming out of the eurozone. thank you for joining us. taking a look around europe, do you see anything in the strong showing we have seen from the far right hard use in these --opean -- bright parties right parties that will change were europe heads from here? >> i don't think it is going to have a big impact on our short-term outlook on europe. the economy going, especially in france, but in europe we have high unemployment see the voter can being fed up with the current situation. >> do you think the ecb is holding a for them in port --

in portugal?rum do you think we will get an idea of what monetary policy might look like? that is going to be a very -- speechbeach ecb ecb president druggie will deliver in portugal. a couple months ago he outlined contingencies under which the ecb would act. he says the ecb feels comfortable acting. expectations are running very high. if president is druggie is going to show more concerned about the risk of aboution, more concern inflation expectations, those are the two conditions under which he said the ecb would givee more open to

substantially more monetary policy stimulus, which could mean going beyond interest rate cuts. does have aghi history of going off script and making big statements when he does. this is not an ecb meeting. it doesn't mean we won't get any news. what do you think really is on his mind at the moment? >> i think his biggest worry is europe could slip into a situation we have in observing in japan where you have economic stagnation, low inflation. that would be very difficult to sustain in europe where we have states struggling with sustainability. that is a big issue for the ecb.

the mandate is to keep inflation below two percent. he also made clear several the inflation target is symmetric. that helps with dealing with the debt overhang. also it is again in a situation where you have low growth and low inflation. it comes. difficult to deal leverage from the public sector. -- it becomes difficult to deal with the public sector. impact inflation expectations, pushing out the risk of deflation, which i think would be very dangerous to the eurozone. are talking from germany. what is your take on the german

economy at the moment? it is very integrated with german supply chains. if people are worried about slowdowns in china or the resilience of the recovery in the u.s.. do you see any resilience in the german story as a result? we have seen some fairly weak export data. coming fromnot much the rest of the world at this stage. exports have been relatively , but germany is a lucky position that domestic demand is very strong. it made up for external weakness. it was boosted by be nine weather conditions that helped construction sector. at this point the german economy is doing very well. there is a huge divergence across the eurozone. we have seen stagnation like

france. it complicates very much monetary policymaking. >> thank you for joining us. berkeley senior economist joining us from frankfurt. is ukrainian billionaire a set to win the elections. we will be speaking with the minister just coming up after a short break. more from that region.

>> welcome back. time in london is 7:24. korainian candidate polochen is set to win the election. >> we are going to be speaking with the economy minister of ukraine, his first meeting with the media since we saw this victory last night, indicating he will win without a second .ound thank you for joining us. it looks like we have a clear win in the first round. have.ks like we are you happy as the economy minister with the ukrainian

people's choice? good for theenko economy? >> i am happy there was free and fair elections. i am happy they get to elect their president. i am happy they will have a strong counterpart backed by more than 50% in the first round. >> is it market positive? >> i think it is market positive. of the about the impact economy overshadowing things? >> we have an antiterrorist operation to de-escalate the situation and bring back order and bring those guys under control. you quantify? >> we will see that later. is west important thing

need also to engage the people who live in the region into policymaking. that is why the government has launched the international roundtable. the legal -- local leaders, business leaders, so we develop a common policy. >> when do you think the problems in the east can be resolved? >> i think major issues can be resolved quickly. weaponsy need is some that are now dispersed among the people. these have to be surrendered pretty quickly. quickly that is done depends. >> going into a conflict with russia, are you expecting a supply cuts at the beginning of june? >> i expect negotiations with russia -- knowing our russian counterparts, i think negotiations are expected to

pick up. figure out a common solution. >> are you ready to repay your debt? president putin says you have $3.5 billion. >> we are ready to repay. >> they are saying they want to charge you $486. what do you anticipate paying russia some of the money you owe it? >> it is the intermediates. >> tell me about your international currency. after you got the money from the imf and the announcement of the deal, we didn't really see a strengthening of the currency. do you think on the back of this election we can expect a strengthening of the currency? why thebut i think

markets got more nervous is the situation. under control. >> the government has said they anticipate an exchange rate of 10 and a half to the dollar. governmenthat the eggs about this is one thing. they are -- the youth see with the government thinks about this? meetings or events or decisions being made of consequence? >> absolutely. understand all of the emergency measures we have to in order to employ

unpleasant financial outcomes we are taking back in march and april. basically doing something very important. we need to pass lots of laws through the parliament so investors can feel a better condition. >> we wish you all the best in that. i am going to try to move in. thank you for your time. that was ukraine's economy minister in his first interview with international media since we got those exit polls isicating that poroshenko poised to become the next president. >> let's talk currency is now. fors get to jonathan ferro the currency check.

>> the eurozone is the only gainer in town. the u.s. is off. london is off. euro-dollar is down close to 1.40 in a month. if the inflation outlook worsens we are comfortable acting in june. comfortable doing what? that is what we want to learn. any clues what the ecb might be doing? the ecb chief speaks at their first economic for him. theirould like to call it version of the jackson hole. that happened that 9:00 a.m. u.k. time. >> thank you very much. these are the top headlines. poroshenko ascted president. of the eastern part of the country did not vote. gains. parties racked up the biggest anti-eu victory came in france, greece, and the u.k.

the u.k. independent party won the election in britain. thailand's king has endorsed the military to despite protests. thailand's army commander will name an interim prime minister today, four days after the government was overthrown. the new european parliament will when its work at a time leading eurozone politicians are convinced the economic crisis is over. at least as far as the economy goes, my next guest says that is not true. we are joined to the director of the center for international political economy. very much thank you for coming to talk to us. what do you think the new priorities for the parliament should be? the economy itself like you are suggesting should be their priority. still in a very

poor economic situation. unemployment is still extremely high. economic growth remains anemic. whenever set up we are going to have in the european parliament, the european commission -- the first ird for them would have to be to get the economy around europe to work much better. -- the first priority for them would have to be to get the economy around europe to work better. >> you don't think the extremist don'ttist votes, you think that is going to have a ?irect influence on policy why do you downplay the ability of these groups to influence policy? >> first of all, we are talking about a very diverse group of politicians and political parties. secondly, they have gained seats , but takenpe together they are still far too small to have any influence on

the shape of policies coming out from ruffles, but more importantly, i don't think they are going to brussels in order to influence policy. they are going there to about what they want to do in their home countries. i don't think they are going to come there to be part of the machine the european parliament really is. i think the main conclusion going out is that we are to find the centerleft and the center-right having to cooperate much more than they have done in the past, but that is not a big change from what we have seen in the last five years. >> is that going to be the extent to which brussels is listening to these votes? do you see any lasting impact on the way brussels does business on the type of european union we have? >> that remains to be seen. we're going to have a far more

coverage in it political situation in brussels in the last five years and we have in the past five years. we have other challenges, like the u.k. is going to have a national referendum and wants to renegotiate the terms of its membership. also seeing other established parties around europe like angela merkel's christian democrats are in holland they are also starting to find anterested different sort of working order in brussels where powers are going to be sent back to member states and they want to see more reform. the rise of the populist and extremists, we are going to see a slightly different tone coming out of brussels in the last five years. i don't think it's going to be a big earthquake. we are talking about a complete revision of what brussels is sort of a complete new accord between member states and

brussels about national sovereignty. >> it might be early, but is it possible to read anything about this election into the scottish independence referendum? some analysts suggest you might be able to take these results and draw some conclusions or speculate as to what might appen in september? >> it is always difficult to say. what we most certainly can say is the results coming out from all across europe yesterday doesn't really seem to correspond with sentiments when it comes with national politics in their countries. we have far more fringe parties that have gained and established parties that are falling. domestic policies that whacked as well. this problem with elections to european parliament that many people don't seem to

think it matters so much. prepared to put the vote on a fringe party that is not going to have any direct influence on policy but is a proper protest vote. the scottish referendum is going to be about something substantial. it is going to force people to vote to think about whether they want scotland to stay in or out of the union. >> thank you for joining us. ukraine's election of a new president may help ease months of tension with russia over potential gas line disruptions. we sat down with the head of germany's largest our producer -- power producer. what did he have to say? >> this is an interesting conversation with a guy who is in the thick of it. this major supplier does a lot of business with russia. relationlong-standing

with gas from. they then sell it to germany and the czech republic. so far the relationship is going well. this has been going on since the cold war. they have been through tough times. so far it has been going well. he is concerned things could escalate and become worse. i asked if there was going to be another gas crisis in europe. here is what he said. >> i would say there could be some hiccups. i don't expect a long-term freezing of the relationship. andia has depended on us our money. >> they say they need us as much as we need them. he still thinks russia is a reliable supplier of gas, but he is beginning to look else where. he says it is always prudent to look for alternative sources. that is the geopolitical environment he finds himself in, but how about the underlying

this news? >> it has been a difficult year. they have had multibillion-dollar write-downs because of some power plants they had to write off as goodwill. they had to cut cost, cut dividends, and they have been selling out a lot of assets. the stock has really been struggling the past couple years. he says he thinks the worst of the crisis is over and things are going to be returning to profitability this year. he says they are still generating cash. the big problem is there needs to be certainty in the regulatory environment. there is still a lot of uncertainty about what it is going to be. that is a big problem. you need to have certainty before you can be on a solid track. alternately 80% of analysts still have it as a cell or hold even though he thinks he is going to be back in the black. >> thank you very much. you will be back later this morning. rushing towhat will

pop -- perishing, --poroshenko 's victory mean?

flextime for today's company news. bp signed. bp agreed to $300 million financing for a joint of element deposited near kazakhstan. are open to consider an alternative for the benchmark. the ceo says it is possible the gold price on the cme futures exchange could be used instead. general motors has linked 47 crashes too small cars with defective ignition switches was saying it has not increased the number of deaths tied to the accident. the automaker began recalling chevrolet cobalt and other small cars back in february. let's talk about what is happening in thailand.

are expected to name an interim prime minister after the king gave his approval for thursday's coup. popular protest are growing with ontesters defying a ban street protests. protesters have had enough of seeing soldiers on the , get out, getg out. >> we need to choose who. we cannot live like this. >> gatherings of more than five people have been banned by the army. to stop her rally of 500 protesters from making their voices heard. a long smoldering insurgency flared to life over the weekend. a series of bombs exploded,

killing three people. it's not clear if they were or as to the crew -- coup insurgents were sibley taking advantage of the chaos. these demonstrations were small by recent standards, but if protesters become emboldened, numbers could grow. five that was the latest on the situation in thailand. on the move started just under half an hour. manus cranny is going to be anchoring the program. he has something yes. -- some big guest. where should we start? the trading environment? i think the trading environment, what a shot of the proverbial for europe. 30%. it, theyink about

might be underwhelmed in terms of voters. 30% are antiestablishment. are going to see how europe actually reacts. investors are overweight europe. show.e a really cracking >> you have some reaction to that european vote. >> we have mario monti to join i suppose aebate. stalwart of european politics, a voice in terms of somebody who has tried to reform certain written he was spared because he came late to .he table we are going to get that context from mario monti. we going to try to put the whole thing in perspective.

then we have a great conversation. and one of the beast in terms of the oil industry. we are joined by the cfo shortly after 8:30 a.m. two huge conversations that will help give us a little perspective. >> plenty to look forward to when we will be -- when on the move will be here. ecb forp the first ever them taking place just outside of lisbon in portugal. ♪

>> welcome back. it is 7:50 here in london. joins us to talk about some of the big macro themes. the big one of the day is going to be the ecb falling. it is beautiful this time of year. to jacksonnswer

hall, which is the gathering of bankers and intellectuals. >> a chance to test the waters for what they might do next month. mario draghi gave a speech and set up various scenarios of what he might do given certain situations. what was interesting was the base case scenario. it is inflation and then we move gradually back to target. what worries me is if the base case scenario changes a lot. to be staff reductions updated. that is part of the reason they are not updating. >> of the inflation outlook worsens, we are comfortable acting next month in june. he has got to walk the walk. the talk we have had a lot of that. today we are looking at hints as

to whether that base case scenario has changed, and other top of that, what are you going to do about it? what are you likely to use next week? is it just grates, or are they likely to go beyond that? are we set for disappointment? central banks complain about them being the only bank in town. the only reason june 5 has become this massive date in the diary is because mario draghi put it there. economists predict there will be some sort of rate cut coming in june, don't they? the bar is set pretty high. be the first major central bank to charge bank for holding excess cash overnight, which some people say is quite significant. there are other options on the table. >> there are other options,

maybe to do an asset purchase program in europe. to get over that hurdle. this massive. i watched the press conference. everybody changed their call on what the ecb would do next month. was hes interesting defended the ecb's independence. you had pretty much everybody under the sun calling on the ecb said,more. mario draghi we are an independent central bank. he defended the independence. next week he will be dependent -- defending their credibility. the most significant policy initiative hasn't been qe. it has been one life for mario

draghi. those words meant something. week,y don't act next does that take a dent out of him doing whatever he is going to do next month? >> this is at the ratesetting meetings. set is not the meeting to policy. this is not a press conference on the back of one of those. he does have a history of being bold enough to make those market .oving statements >> one other point i might add his expectation is high but the market has moved in anticipation of all this. the euro has come down today. we have seen yields in spain and italy rally as they come down significantly. can he deliver? can he go beyond expectations? that's a massive question. >> this is going to be more than just about the ecb. i found it interesting that

christine two guard was in attendance. dugardtina two guard -- was there. it is not just interest rates. she was cautioning. you wonder who is listening. >> there seems to be some kind of blind faith that we don't need to use bank rates. they are tested somewhat, but in majoral areas, not in a country like the u.k.. test for the bank of england itself. >> thank you very much. on the move is next. as protests rocked the the e.u. parliament they will be speaking

exclusively with the former italian prime minister mario monti. there is trading in other parts of europe. manus'sleave you in capable hands. ♪

>> welcome to "on the move." the u.k. markets are closed for bank holiday. until the start of the bank holiday. with me is jon ferro. hans nichols is standing by in berlin. a have got futures indicating

higher open. you said to me, had i look at -- look at italian government bond yields? >> down. the big winner in these european elections was not just the anti-european party. >> futures are a little bit higher. go to ryan in kiev. ukraine has a new president. almost certainly. of ukrainianan politics. he is a billionaire who made his fortune making and selling chocolate. he is all but certain to be announced president-elect of even as violence threatens the nature of the ukrainian state as we know it. breakdown get a full on those election results and

political implications shortly. let's cross to berlin and hans nichols. a little bit of an upset to say 30% of european parliament is filled with antiestablishment rds. .- parties >> there were upsets all night and surprises, but perhaps the renzit one is that matteo came in at 41%. the other was 21%. this is an antihero vote across the board. it's an antiestablishment vote across the board. then anti-euro vote across board. we are seeing the markets reaction. >> futures are indicating higher. the euro is inching a little bit lower. event.waiting for a new

we have got draghi. we have the imf leader. what can we expect? what are people speculating? we just want the detail on what is going to be next. if you are comfortable acting in june, what are you comfortable doing? speech iso draghi's pretty much the only game in town. >> they'll quite a bit of data. >> futures are a little higher through the morning. london closed. the u.s. closed. volumes are going to be a touch lighter. the stoxx 600, six weeks of gains. the longest winning streak since november last year. this is your market open. of oneup by a quarter percent. ignore the ftse. that is closed today. italian stocks rally. that is the big gainer through

the morning. guess why. matteo renzi. the italian prime minister has the stamp of approval from the italian electorate. if you look at italy on yields down by three basis points. that is significant. theanti-european parties discontent was energized by the underperforming economy through posing the eurozone, some thorny question for central bankers. euro-dollar. the only game in town was for mario draghi's speech. what are they comfortable doing? are they going to act june 5? a big question. have that through the morning. let's pick out some big themes with the portfolio manager. he is kindly to come in on this bank holiday. europe,ck off with

because that is the majority of worry -- where the majority of your money is invested. a real kick to the traditional format of the eu. antiestablishment, does it mean anything to you as an investor? >> it's not good news. the main thing for europe is to that will havey compromise on any subject and push for a specific agenda. it is probably because of that. my opinion is of course there are a lot of different rds. -- different hearties. parties. >> there is still quite a disparate, it's not a united voice.

movement it's the difficult to organize themselves in the national parliament. bad news.'s very we don't know what could happen. you could have some specific issues that go the wrong way. could unite over certain subjects. it looks like we will have a clear victor in the ukraine elections. what are you waiting to hear from russia? >> i think that's the main thing. thereve to keep in mind today ist is important

they will be able to recognize the election as a fair election. what happened last week we had the impression it was a clear possibility. it's hard to call. soould think they would do because otherwise they would turn to more sanctions. it's a close call. >> we will talk to mario monti very shortly. >> 30% of parliament, it will be an impossible situation. >> this is why many people question the validity of the eu. the electorate has gone from 50% to 40%.

mario draghi has gone to a their equivalent of jackson hole. do you think he will say something that will impact markets? >> i think everybody wants him to say something about what will happen on the subject. we know he can deliver very high expect haitians. -- high expectations. there are a lot of challenges. we think they can make more military policy. >> what is your top call out of that? >> we have seen some selloffs, especially in portugal. i think it's a good opportunity. so far we did ok. going to leave it

there. we are going to pick up your thoughts when we come back from break. here is a look at what else is coming up. the eu hearties through parliament. mario monti joins us to give us his take on europe and the future of the ecb. ♪

>> this is on the move.

the far right parties in france and the u.k. took an unprecedented first place in the parliament. turnout was down ever so slightly. results,look at these quite shocking the sheer for some of these numbers are. were there any establishment parties which came out of it ok overnight? >> matteo renzi. this will cause national governments and parties to rethink their approach to the european union, but in no way the immediate collapse of government some people were expecting these elections to precipitate did not happen. theire have in italy, government actually strengthened. he comes in at 41%.

the five-star movement had only 21%. italy is seeing strong. yes, the far left artie made great advances in greece. doesn't look like a collapse of the government is imminent. far right parties made advances in france the socialist party of francois hollande came in just 14%. yes a strong finish for right-wing parties and anti-eu in italy the government seems to be more established and more entrenched. the answer on who seems to be parliament, that comes down to horsetrading and jean-claude juenker. will he be installed? ?hat will his challenges be

that is the issue. it doesn't look like it will cause an immediate collapse in government. >> lets the who takes up -- let's see who takes up residency win the vote is called. we are joined by an exclusive interview from the former italian prime minister and former european commissioner mario monti. you for joining us. when you look at the results across the european landscape, should national government be concerned? should they be listening more? moreey should be listening and should be speaking differently. should be listening more to their domestic opinions because

the mounting wave of populism clear and visible. they should also be speaking differently because most governments, even the most her european nations often play a cynical game with europe. they participate in the decisions taken in brussels with other governments and then blame brussels as if it were a different thing for sometimes unpopular consequences. is you i want to know said they should be paying more attention. should they be lobbying to change their fiscal policy? ins fife lake grip we have terms of stepping back from spending. is there a case to be made to adjust fiscal policy?

wax there was a case already. that case is reinforced. i think one needs a balancing many countries have made progress to achieving budget and discipline. italy is a country that came out of the crisis without any financial assistance from anybody. it is now out of deficit received your by the eu -- procedure by the e.u., so in recognition of the good progress being made i countries, the european union should go to a policy framework that is more expansionary in terms of both investments at the european level and allowing some more nationally financed

investments. >> i would like to turn our toention to domestically italy. mr. renzi, his party got over 41% of the vote. compared to the french and the greek situation. does this give renzi a stronger mandate to wish for change in 2014? >> unquestionably, this is clear. i am confident prime minister of theill make use mandates not by going there and trying to throw things upside but rather to continue the action italy has been doing and the government to

persuade germany and other that wes in the north all need to pursue structure and to have ae continuation of budgetary discipline but one which is more forward looking and more respectful of the need for europe to increase its public investments. >> italian government bonds are searching this morning. been record lows around the periphery of europe over the past month in the bond markets. are we getting something wrong? are we assuming too little risk for markets? are they assuming too little risk in the periphery of europe with those bond markets? don't take markets are going to sleep as they did for 10 years.

i think they haven't assumed the periphery is serious. what they would expect is a relative improvement within the .eriphery of the markets italy is the only country in southern europe which came out of the crisis without any financial assistance and is the only country in southern europe which is no longer in the excessive deficit received your. that includes all southern belgium,t also france, the netherlands are now being observed because of excessive deficit, not italy. i don't find it normal that italy still have two -- has to pay a higher premium over

germany than spain. >> let's hope that continues unabated and nobody does question what mr. renzi employees. this is billed as the jackson hole of europe. what's nonstandard measures are going to work to relieve the ?ituation in europe what does drawdy need to deliver? need to deliver? >> he has been doing a lot. i think the best moments have been 2012 by the in european council, which i was a member, to adopt unanimously a decision invoking some

stabilization of the bond markets for those countries which were in line with your recommendations. that was adopted. it was not easy. that paved the way for mr. the outo put in place right monetary transaction. that has never been used but has proved to be a powerful safety net that has largely stabilized the markets. agree withabsolutely you on that point. so would many in the market lays. now it is about delivery. do you support out right quantitative easing and what we have seen in the united states of america, or do we want to see a credit easing? which will work better in your to build more credit to the

system? europe can focus more on improving the transition mechanism so any monetary expansion doesn't really flow into the hands of companies facilitating credit and further reducing the spread. i think the european central bank has honestly been having a record superior and not inferior. >> we need to finish with this. how do they improve that? it's a great conversation. how do they do it? you know how europe works. >> they go into negative territory for central bank interest rate.

and a few other things the ecb which i will be able to explain in a few more seconds. us onat to have you with the day of these elections. defending italy and giving praise to the ecb. great to have you with us. coming up russia's role in european energy supply. whether they are looking elsewhere for supplies. >> i think it is always good policy to have multiple sources. we need to look at how the dependence on russia can be compensated by our sources. >> we will pick up on that conversation with the cfo a little later in the hour. ♪

>> welcome back. still with us for his is the portfolio manager. what is your take from this? do?hat can the ecb

there are two ways. bank to lend.a >> he seemed to favor it, didn't he? >> for the second half of the year it could be the asset .urchase of government bonds it is still problematic about that. and the bond is issued by europe and european entities. >> let's get two big themes. m&a. what is the next big thing? the valuation in telekom reflects this him in a, so we have to look at other sectors that could continue this trend.

i think it could continue. there is a lot of crosscutting that can be done. that is one thing. leaveare going to have to it there. stay with us. we are going to have the cfo after the break. ♪

>> welcome back to "on the move ." i am manus cranny in london. equity markets are trading higher. the dax is at -- it is just off a record high at 9861. what you have here is stocks starting the week with a nice lift. we are waiting to see what mario draghi has to say. gdp will come out from the united states. it is a big week for data. jon ferro as those on the

touchscreen. >> it is a big day for italian markets. italian assets doing the talking today. italian 10 year bond yield, huge move. down 13 basis points. there is one reason for that. matteo renzi, the prime minister , it is the first time he has faced a national vote. an overwhelming stamp of approval. renzi's party with 41% of the vote. that strengthens his mandate to do more. the risk is, we came into the elections with political instability in italy. approval goes to matteo renzi. italian equities higher, bond yields lower. euro-dollar pretty much flat on the day. mario draghi talks and about 40 minutes time. >> we will be listening intently for that. these are the bloomberg top headlines this morning.

thailand's army commander has released 13 antigovernment protest leaders one day after the nation's capital endorsed the military coup. and interim prime minister is said to be named today. protest parties wrapped up gains across elections for the eu parliament. the biggest antiestablishment victories came in france, greece and the u.k. the u.k. has a party which wants to pull britain out of the eu. billionaire petro poroshenko leads ukraine's presidential polls. he has won more than half the votes that have been counted. most people in the eastern part of the country did not get to vote. for more on the latest in ukraine, let's get to our correspondent, ryan chilcote. russia last week, st. petersburg today.

what is your feeling? >> it is pretty clear on this one. petro poroshenko is all but certain to become president-elect of ukraine later today. he is a veteran of ukrainian politics. he has been the ukrainian minister. he has been in power under numerous leaders and has reuven himself to be very agile at dealing with. various politicians. he is a billionaire, worth exactly $1 billion by our count. i talked to him just after he came off the stage yesterday where he effectively made an acceptance speech. what i found remarkable was the way he describes the situation in ukraine like a businessman. have a listen. there is a great danger but there is a great opportunity. my main purpose will be

organization of the country. to build up independent causes. tolerance toe zero corruption. if we can effectively demonstrate that, foreign investment will be here. ukraine should be and would be a paradise not only for ukrainian people -- >> the very first people on the agenda are not -- they are the separatists. the fighting continued in the east today. we saw the separatists destroying ballot boxes, something i have never seen in 20 years. that is really what the president-elect is going to have to deal with. the formerht up with heavyweight champion of the world for boxing, vitali klitschko.

i got the same sense from him. they were sharing a campaign headquarters and he is about to become the mayor of kiev. as far as they are concerned, the whole fight for ukraine is just beginning. boxer, where are we right now in the fight for ukraine? what round is this? >> first round. we made a very important step. we change the power. want to build a democratic european country in the middle of europe with the name ukraine. >> according to the exit polls, petro poroshenko is leading with 54% of the vote. according to the official count, he has got about that same

amount. he is almost certain to be announced as president-elect later today. the key thing about that is that had he not gotten that 50%, there would have been a second round which wouldn't have taken place until june 15. a lot of ukrainians say they are relieved that there is not going to be a second round. the country does have a commander-in-chief and a president and they can move on and deal with the situation in the east of the country. >> ok, ryan. thanks for that. well done. kiev.hilcote live in is alsoian oil giant among countries that withdrew participation last week from the st. petersburg economic forum. for more on their view on markets, we welcome the cfo. great to have you with us. inhave been talking to ryan

st. petersburg. we had the election results in ukraine. what does this landscape mean when you sit in a board room as a major oil producer? >> first of all, we have been doing business in russia for more than 20 years. we have a very long-term perspective. we don't have business in ukraine but we follow the situation very closely. put pressure on your ceo not to go to st. petersburg or was it a closed-door decision made by you? >> we participated in st. petersburg. >> you are present but the ceo wasn't there? >> it is an important meeting for us in st. petersburg.

promising opportunities in russia. >> and you are continuing even though the ceo of rosneft is on the bench. no problems there? great opportunities for the long-term in russia. >> let's move on from that. let's talk about your business. this political crisis, some would say, will create an opportunity. europe needs to look outwardly now for their supply. in the long term, does that mean there was an opportunity for your relationship with europe? have you seen any impact? has always been very important to us from any perspective and especially in the gas supply. we supply europe with a significant part of the gas needed. i think it is fair to say that

the energy has always been geopolitical. it will remain so. i also think it is fair to say that the russian supplies have remained stable and predictable for decades. >> is that going to change? russia is looking towards china. people are saying, in the long term, that can only mean one thing. that means that prices for gas rise in europe. >> first of all, i think the deal between russia and china just demonstrates the importance of gas. china needs gas. that is exactly what the world needs. i think it is a deal for the climate. this gas as i understand will come from sources competing with the european market. as a very natural gas important fuel for europe to deal with the climate issue and economic growth.

the european market has developed significantly over the last decades. we have norwegian gas, we have russian gas, north african gas. from an energy security perspective, the situation is actually better than it used to be. >> obviously, that garners more competition for you. up,rim reitan -- statoil but my gosh, you are dealing with a lot of political slapping at the moment. thehave been asked by opposition to use electricity from land to power certain projects. huge in one year, two seismic changes. does this call into question your development of the big reserve? i may, therell, if is a lot of things happening in the industry. the challenges are quite big. if you look at the returns that

the industry is delivering, it is at a similar level as we delivered 10 years ago. is no longerel what it used to be. really attacked the situation . a world leader for the last three years. we deliver a project on cost and schedule. we have practice. >> i get that, but you have been attacked -- i am not sure in political difference here -- to get taxation put upon you and then get told how to power your site in a different way, that is big change in a year. you couldn't possibly deliver on

those promises in the backdrop of those issues. >> great discovery. when it comes to plateau, it will be 20% of the regional production. it, we have to pinch ourselves in the arm. this is great profitability. that is if the politicians will let you. >> in norway, there will always be a lot of attention. case,s particular electrification is part of the concept we have decided upon. we will facilitate further electrification in the area. my reading of the situation is that politicians really would like us to continue.

>> there has been a lot of speculation about maximizing -- not speculation, but optimizing your returns. there has been speculation about more asset sales to come in brazil. can you confirm or deny that assets are for sale in brazil? >> we are opportunity-rich. we have more than 100 projects to choose from and we are picking the best for ourselves. quite a few projects are put on the shelf. we take them out in 10 years time, five years time. from $18 billion in proceeds of about two years, $6 billion in capital gains. i don't want to say upfront what i intend to do. >> what is non-core?

>> we have done quite a bit of cleanup. we are a very pure company, focusing on what we are best at. butn't get into specifics, you shouldn't be surprised if there are transactions coming going forward. this is part of our strategy. click -- >> we are going to have to leave it there. , cfo at statoil. we are back in just under two minutes. stay with us. ♪

>> i am manus cranny in london. this is "on the move." today go to the polls and the presidential election. the outcome is widely considered a foregone conclusion. the former army chief who ousted president mohammed morsi is expected to win a landslide victory. elliott gotkine has more. whoever wins the selections, they have quite a job on their hands. >> that is an understatement. yes, quite a huge task. courseointing out of that this is a two-horserace. against someone running

him. he came in third in the last presidential elections in egypt. he will do better this time. he is not expected to take a huge share of the vote away from the firm favorite. these elections will have a mammoth task on their hands. politically, this is a very polarized nation especially since the military overthrew mohamed morsi, egypt's first ever freely elected civilian to the presidency. he is in prison on various charges right now. leading the military at that time was el-sisi. economically, the economy in egypt is a mess right now. we are talking record unemployment, a record low for the egyptian pound. you have blackouts on a daily basis. the economy only being kept

afloat by the generosity of the oil-rich gulf kingdoms who have pledged something in the region of $15 billion to prevent the most populous arab nation from imploding. a huge challenge for whoever wins this election. official results due out on june 5. soon after that we should get the swearing in of egypt's next president. elliott gotkine in tel aviv, thanks for that roundup. "the pulse" is coming up. olivia sterns joins us from the newsroom with a preview. you and mark barton, terrible twosome. >> what a newsday. it is a shame it is a bank holiday. we are talking about the ukrainian elections. we are going to speak to ryan chilcote about the victory of petro poroshenko. we also are going to be talking about the eu parliament elections. we have a senior fellow at bruegel which is a think tank as

ti toas francesco gallie break down what the results mean. be having what should be a very interesting conversation with lady linda rothschild. she is ahead of group. if you think about what these epresent results r -- >> ok, olivia. looking forward to that. stay with us. we are going to be back in two minutes. italian government bond yields drops. ♪

>> welcome back to "on the move ." time now for some company news. pfizer is close to abandoning pound bid forlion astrazeneca. today is the deadline for pfizer to deliver a firm offer. according to a person familiar with the matter, the u.s. drug maker almost certainly won't to do so. this would have been the biggest deal ever in the drug industry. general electric has pledged to

keep alstom's nuclear operations in france. ge is seeking approval for its bid to buy alstom's energy division. last week ge agreed to a government request to extend the deadline. a $300 million financing deal. tried to reach a deal with a russian energy company in st. petersburg last week. the chief executive of rosneft has been blacklisted by the u.s. the euro is rising actually, despite the eurosceptic parties taking seats in the eu parliament. we are expecting to hear from the president of that group hopefully in the next six to

seven minutes. jonathan ferro joins us now. if our producers can pull up a isrt of euro-dollar, that the pictorial stage for you. bothered?e >> i was very excited about two hours ago. mario draghi is going to talk at 9:00. , givent get some clues that his biggest speech to date was back in 2012. it was the whatever it takes speech. i wanted some clues as to what the ecb might do next week. the vice president speaking to reporters in portugal as we speak. he says, we want discuss next year's rates. i am not in a position to rule anything out. five minutes to go until druggie's speech. -- draghi's speech. >> italian government bonds moved.

let's be very bloomberg about it. they moved. i respond yields are falling by eight basis points. there is a wind in these bonds. beene bond market has speaking for a number of months in anticipation the ecb might do something. that is a tremendous move in italian bond yields this morning. down by over 10 basis points. coming into the european elections, you have an italian government that could potentially be destabilized. it hasn't happened. matteo renzi might be the prime minister of italy but he has never faced a national vote. last night he got a huge stamp of approval. >> we are going to leave it there. let's see how these bonds and foreign exchange markets react, despite the fact that london is out. a great deal of liquidity in these markets.

meanwhile, mark barton and olivia sterns will be back at the top of the hour with "on the move." we will bring you breaking headlines from the only voice that matters in europe on a day like this. it is mario draghi. ♪

not only the president, but the future commander in chief. i am going to do my best to bring security and to bring peace. petro poroshenko claims victory in the ukraine election. >> eurosceptics take on europe as protest parties gain momentum. it is a wake-up call for mainstream politics. >> mario draghi speaks this hour, the first ever ecb forum.