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.

welcome to "the pulse." i'm mark barton. >> i'm olivia sterns. pfizer is on the verge of ending its effort to buy the drugmaker. >> world-class grass for the world cup. as players prepare for the kickoff, we show you the cyborg version of foot wall turf -- of football turf. has claimedenko victory in the race for president. exit polls show you one more than 50% of votes. ryan chilcote has been speaking with him. he joins us now live from kiev. this looks like a landslide win for poroshenko. >> that's right. to beall but certain

announced as the president-elect of ukraine later today. to exit polls show he has more than 54% of the vote. the official vote, same thing. again, he has more than 50%. he is a veteran of ukrainian politics. he is the foreign minister of this country, he is in the economy minister. a also is a billionaire, made billion dollars both making and selling chocolate. what i find remarkable when i spoke with him after he got off the stage, having made what sounded an awful lot like an acceptance speech, is that despite the turmoil, just how positive he is about the situation in ukraine. businessmanke a when he describes what he needs to do. have a listen. >> there is a great danger, but there is a great opportunity. my main purpose will be to organize the country, build up independent cost systems,

demonstrate zero tolerance for corruption. partnership --al if we can effectively demonstrate that, foreign investors will come here, no andt third ukraine could be should be a paradise that only for ukrainian people but for investors. investors on the top of his laundry list of problems to deal with. video obviously showing them destroying ballot boxes, something i have never seen in 20 years as a reporter. the country,of something like 1/7 of the country, 5 million voters were unable to vote in the luhansk and done at screen gems. donetsk regions. i asked him how important it was inmeet with president putin

the future. >> i think we should find out a format which helps us to solve a long list of problems we now have with russia. what would be the form, would be the date. >> wooden sitting down with the russian president do it? >> i think that would be possible. most probably together with our american and european union partners. it would be much more effective. >> there is a sense that it is just good that ukraine was able to avoid a second round. if poroshenko doesn't come out, if he was not to have come out with more than 50% of the vote, there would have to be a second round in the middle of june. given all the violence and given the fact that the very existence of ukrainian street is in question at the moment, a lot of

people are saying at least he got through that election. probablye inaugurated at the beginning of july. at least we can move on and start dealing with the critical existential issues facing this country. >> one of the first problems he will face an will need to handle it is a crisis in the east. it begs the question, how free was devoting their? -- was the voting there? >> the separatist effectively block voting in all of the occupied regions, which is a huge part of the country. having said that, i think with the ukrainian president is offering, e devolution of power, a decentralization of government , leaving more money to the regional government, maybe something that the people in that region are prepared to accept, a federalization of what is now a very unitarian, very centralized government.

it may be acceptable to people in that part of the region as opposed to joining russia. russia, so far, has declined any so far to beests accepted in the russian federation. >> thank you, ryan. we will continue in just a couple of moments with someone tinao intelligence. >> meanwhile, earlier this morning we spoke exclusively to former prime minister mario monti of italy. manus cranny started the interview by asking him how national governments -- how concerned national governments should be. >> they should be listening more and speaking differently.

they should be listening more to their domestic public opinions ofause the mounting wave populism was there, clear and, already since a few years. they should also be speaking differently, because most governments, even the most pro-european and national governments for a often play a cynical game with europe. they participate in decisions taken in brussels with other governments and then blame brussels as if it were a different thing for the sometimes unpopular consequences of those decisions at home. >> mr. monti, where want to know is, you say they should be listening more and paying more attention, should they therefore be lobbying to change the fate -- the fiscal policy, this viselike grip we have in terms

of stepping back from spending. his or her case to be made to adjusting fiscal policy? >> well, there was a case already. that case is reinforced, but i think one needs a balancing act, mainly, many come -- many countries, particularly in the south, have made progress toward achieving budgetary discipline. italy is of course a country that came out of the crisis without any financial assistance from anybody. this is now out of any excessive deficit procedure by the eu. in recognition of the good progress being made by countries , the european union should go to a policy framework that is more expansionary in terms of investment, both investment at

the european level and in allowing some more nationally financed public investments for selected projects. get more on that you elections. our national correspondent hans nichols -- our international correspondent hans nichols is with us. very 41%.ly did well lots of numbers to get through in these hits this morning. to really stand out. really stand out. contrast the 41% that renzi's party got with the 14% that francois hollande got. of this isne out that this is an anti-eu vote. examples,a couple of namely italy, where it is clear something else is going on. it is the idea, so far, that

nationalist politicians need to be more responsive. in some ways, the response of this result is going to be more interesting than the actual results. >> mario draghi is speaking this hour at his first ever ecb for him. he says the risk of deflationary expectations taking hold. jonathan ferro, let's start with the headlines. >> let's dig deep. a headline on him saying they won't discuss current policy at this conference. is a risk of disinflation or expectations taking hold. we are not resigned to allowing to low inflation for too long. inflation for. of time and we tipped back toward the target which is at or below two percent. that is a sign that they're not comfortable with the best -- with the best case scenario.

it means they could well do something. many people expect next week or june the third that they will. loans. could offer they could buy asset-backed security. expectations might well be high. the first move could well just the rates. -- does itconomists make you think they will do more than the drug he has previously signaled? >> i think he has signaled they are discussing nonconventional tools like asset-backed securities. is he hasf the matter given us the clues. he said last month. the debate is still ongoing. >> what is the minimum job that the ecb had to do next month, cut the main interest in clifton

house rate to zero? that is a very minimum to satisfy investors and markets? >> if mario does what he says he was going to do, that is the bare minimum. what he said last month was if the outlook for inflation worsens, those forecast from projections of the ecb next week are revised lower, if outlook does worsen, then he has to do something. when the expectations echo i think people expect at least a rate cut. i saw all of these reports come from strategist. 90%. that was a huge turn. all of these notes coming to my e-mail folder. we revise move, our expectations for june. we need something. the rates the banks lend to each other have come down. areet expectations building, aren't they? >> once mario draghi was delivering a press conference, it was yields

in italy and spain that were moving lower. >> a lot of people were saying it was mario draghi's response to the jackson hole summit in the teton valley's out in the west. >> the fed is getting boring. will be tapered every month. the big talk of the fed is the exit strategy in the first rate hike. you are based in the states. you know it is. the news is in europe and the ecb. it has been so far behind the fed on policy. >> that is the key question now, are they too far behind the curve? >> is aneconomist -- american in a letter europeans say that their central bank is boring? >> i would never say the fed was boring, the ecb is a little boring. the notice is on a first name basis with mario draghi.

i am not sure janet yellen would take offense to that. >> up next, the chocolate king. petro poroshenko claims victory in the elections. can you resolve a bitter conflict between the west and russia since the cold war? ♪

>> let's bring back the focus to ukraine's elections.

petro poroshenko has claimed victory. exit holes show he won more than 50% of the votes. thank you very much for joining us today. a first-round election victory for petro poroshenko removes some uncertainty, doesn't it? >> indeed, a second round of votes would have prolonged this interim. by three weeks. the separatists tried to take control over the eastern region in order to prevent the vote. actually, there were clashes over the last week. there were forces of the ukrainian army. that possibility has been removed. >> the seventh of the country did not vote. how does he reassert the central bank's authority while the separatists in the south and east are claiming he is illegitimate? >> first of all, they will push a narrative of saying that is

was a high turnout the rest of the country and the people in the east have been disenfranchised by the separatists. whatever the government forces were in control, they tried to enforce the vote. maybe 15% of polling stations were open in donetsk and fewer in luhansk if any. what is the top of his to-do list? >> this first trip as a primitive -- as a president will be to donetsk. the second thing on this list will probably be changes of the constitution that they had been going through. that will come in september/october. atwill probably looking early elections at some point. >> president putin surprised us all on friday when he said he

will work with whoever the ukrainian people choose. would he think poroshenko's relationship will be with the russians? how is he viewed by the kremlin? >> it will be difficult. start the campaign, poroshenko was portrayed in a not very comfortable light. this factors have been targeted by anti-immigration raids. his bank accounts had also been frozen at one point. it not all comfortable. russia might be willing to work with them. they worked with him before when he was in foreign minister. it may work with him now, but it is not going to be a warm embrace from hooting. if he had wanted to do that, he would already have done it. >> stay with us. going to head over to ukraine now. >> ryan chilcote is standing by with a special guest, ryan? that's right, we're joined by

the foreign minister of ukraine. thank you very much for joining us. i want to start by asking, the exit holes we have seen, the shows mr.ote thus far his wayroshenko is on to victory. how does that strengthen ukraine's hand in talks with russia, if at all? >> we're confident that our campaign is over. the president of ukraine is elected and elected by people of ukraine. it gives him more legitimacy. i think this is a very good momentum for russia to reestablish relations with ukraine. and recognize the results of the election and recognize ukrainian president. so far, they were saying that ukraine doesn't have legitimate powers. we have now. andas proven by the voters

it was proven by the international organizations and it was proven by the statement made already by the foreign countries. >> have you seen any signs of support from russia since the election last night? a phone call, perhaps? that petrotions poroshenko might sit down with president putin sometime soon? >> we haven't received any official statement yet from russia. we haven't seen any official statement from russia recognizing the elections. myself, i haven't received any telephone calls from mr. lover avrov. we hope russia will honor the promises made by president putin. >> we have had -- we have heard

allegations from russia that there are fascist in the ukrainian government. how did the ultra nationalists do in the vote? >> there was only one party of concern and that was the right sector. the leader of that party was running for the presidency. his support was about one percent only. one percent. happening next. you think things have eased a bit ever since president putin the he would work with ukrainian president and pull the troops back from the border? >> i wanted to see some concrete steps. to some extent, it is a kind of propaganda. russians were saying that they were withdrawing troops from the border at the same time they withdrawing other troops. russians say they have no influence on the terrorist groups in eastern ukraine, but at the same time, russians were

illegally across ukrainian borders with arms. i think what we really need to see is actions from the russian side, and not statements. of a you see any chance date when ukrainians may be able to travel to the european union without any visas accor any indications from the eu about that? recently, we have adopted a lot of legislation that allows the first stage of the liberalization action plan with the european union. expect that she would

recommend the european commission to move to the second stage of implementation of the visa liberalization plan with ukraine. if it happens, and it is up to the ukrainian government how to implement all of this legislation, if it happens, then we might start talking about the visa liberalization as early as the beginning of next year. you're facing the prospect of a supply crisis at the beginning of june. ukraine has said they are prepared to sue russia in the stockholm court. you have to do that by the end of the month. are you going to do that? >> it is still on the agenda. we will see what will be the result of the talks we have started with russia. the first round of talks of talks have started in berlin. -- the first round of talks have started in berlin. the market price for gas and not

the political price of the gas. >> all right. thank you for joining us. that was the you -- for the -- that was e foreign minister of ukraine talking to us just after the vote yesterday as it would appear that petro poroshenko moves forward, likely to be announced as the president-elect of ukraine today. back to you. is still with us. let's just ask what ryan asked the foreign minister at the end about the gas dispute between the two nations. you expect to be resolved, june 1? >> now we literally only have five days to solve this dispute. now, it seems unlikely that the dispute would be resolved by the end of this month. gas dispute is a function of a larger political dispute hurt if you see the difference between

the russian gas policies of was talkingody about the debt. suddenly when the government changed, there was a price increase by 80% and also the debt is being demanded, whether it is real or imagined. , this isot a dispute not a tool that russia would want removed from his hands before the new constitution is resolved. the gas situation is make or break as to whether ukraine will be able to meet the target. come to the imf will terms? >> i think what we will get in the next couple of days is ukraine saying they're willing to pay the advance at the prices they think is fair, that is $286 as a see it. russia is going to say we will supply you gas for as much money as you provided us, but for the

price of 495 as we think is fair. we will see where that leads ukraine. otilia, we will be back in three minutes. stay with us. ♪

>> the why is the european elections. matteo renzi, the prime minister of italy never faced a national vote. his party takes 41% of the vote to the european elections. it strengthens his mandate. down by and yields huge 14 basis points. we are flirting with that three percent level once again, heading towards record lows. elsewhere, of course we're looking at euro-dollar. one euro buys me 1.3635. inflation, low inflation expectations may require quantitative easing. if he wanted to take some of the heat out of next week's meeting, he certainly didn't do that. >> all right, mario draghi making waves at the first ecb forum in italy. and interim prime minister

council alleged to be named today. poroshenko is elected as president. he received more than half the votes in sunday's election. the biggest antiestablishment victories came in france, greece and the u.k.. the u.k. independents party that wants to pull britain out of the eu -- -- out of the >> thanks for joining us this morning. a huge victory for nationalist parties, for antiestablishment parties, for anti-austerity parties, how big of a blow are these election results to european integration? surprising that more

nationalistic parties are getting a larger share this time because unemployment is very high in a number of countries, especially in greece but also in france. why else integration is a major issue in u.k. and france. overall, these nationalistic hardee's still have a minority in the european parliament. their influence will be large. is make it harder to centralized powers within the eu? forhere now an appetite further concentration of power at the center, or even expanding membership to make it 29 ? it is very unlikely in my view that a further centralization of power may happen in coming years. instead, what is more likely in that case of france is since the

national front came out the first, more nationalistic and more domestic parties will gain more prominence. i don't think there will be any new big project in the eu in the coming years. let's turn to greece for a moment. how destabilizing do think the ? >> ts of these polls are partyrease the far left became the largest. the victory was not as high as expected them and the current coalition partners still have -- i thinkage over it more populist movement in greece, more populist rhetoric -- is unlikely the government new break down and elections will be announced in the near term. >> what will happen in the u.k.

out onhe utip party came top for the first time? >> indeed, it was a surprise then in my view -- it was a surprise win in my view. it is possible that a referendum will be held, whichever party will win the next election, and also, it may have increased the probability that the u.k. will leave the eu. right party far that we saw a surge in the polls ,as france's national front coming in first in those elections as well. we heard francois hollande talking about freezing the shannon jan agreement.

>> i think it is very unlikely, because the dominant parties in the european parliament remained the european people's party and the progressive socialist. france, francois hollande remained in power. why they made immediate push towards policies against the free movement of labor within thinkropean union, i there should not be expected a major setback on the free movement of people within europe. >> you think the antiestablishment parties could unite anyway? members from at least seven countries to form a new bloc within the parliament. to think they can unite in some capacity? they are a motley bunch, aren't they? some sorte and form of protest bloc within the eu parliament?

>> at think it is likely that they will do that. even the national front and france will probably have 25 seats, both in the u.k. independence party, we have more than 25 seats in the parliament. they would be most likely able to form a group by themselves, yet, if they were joint forces they would be more powerful. i think some additional parties will join these two major parties within the european parliament. >> what do these results mean for the election of the president? the eu leaders are not required to choose a candidate based on the elections, but they are supposed to take into account what has been expressed in these polls. how do you think this will affect the election of the next eu president and how much power as the eu commission president really have? >> there was a sense from the voters that they not just vote

for a party list, but they also vote for a new president of the european commission. --ce the european commission european people's party came out first, it would be a wise decision from the european ckercil to endorse mr. jun as a president of the commission. they can decide. now, the second part of your question, how powerful european commission president will be, i is rooms maneuver -- for maneuver is very much limited by legislation. there may be some shifts in policies toward more growth and jobs oriented policies, but basically all the fiscal packs are in place. the president has to respect all existing laws. thanks to you.

it is still incredible to see tsipras name up there along with juncker. >> manus cranny asked him about the state of italian politics. >> i'm confident that prime minister renzi will make use of this mandate, not by going there and trying to throw things upside down, but rather to continue the action that italy has been moving already. there are two governments that preceded renzi to persuade germany and other countries in we all, including them, need to pursue structural to have a home and

continuation of budgetary discipline, but one which is more forward-looking and more respectful of the need for europe to increase its public investments. >> time government bonds are surging this morning. been released, record lows around the periphery of europe over the past month in the bond market. are we getting something wrong here? is it too little risk for markets? are they assuming too little risk in the periphery of europe with those bond market? ts? >> i don't think markets are going to sleep as he unfortunately did for 10 years after the inception of the euro. i think they have understood that the periphery is serious. what i would expect, honestly, is a relative improvement within the periphery of the market recognition of italy, because

italy is the only country in southern europe which came out of the crisis, as i said, without any financial assistance externally. it is the only country in southern europe which is no -- procedure. that doesn't include all of southern europe, but also france, belgium, even the netherlands are now being a debit because of procedure, not italy. i find it normal that italy still has to pay a higher premium, i higher spread over germany than spain is. >> interesting to look at the reaction in the periphery bond markets after the eu elections in light of what mario monti said. rising.ces are bond prices in spain are rising.

investors are very much focusing on mario draghi and our eu elections. percent, when i left europe three years ago, we were at five or six percent. we're seeing surgeon shares of italian banks by the popularity of as much as seven percent. unicredit also gaining some 4.6%. the reaction there in the italian equity markets and bond markets. we are really zynga matteo renzi escape the blame for the economic stagnation that took down so many others. >> this isn't the first time he has had to face the public. of course he hasn't faced the public in italy before. it is a massive support for what he is doing in italy. >> there was a lot of concern about if the results were bad affect theuld berlusconi/renzi packed. he's coming out of this with a stronger mandate than ever for fiscal reform.

>> does that we can berlusconi in the long run? doesn't make him less relevant. questions for our italian guest later in the next hour. put up or shut up as they say here in the u.k.. will it walk away from the biggest ever deal in the drug industry? that is ahead.

>> the drug industry's biggest ever deal may stall out. according to someone familiar with the matter, the offer may be abandoned. we are joined by the senior --rmaceutical analyst at what are the chances we could see a last-minute bid from pfizer? >> probably the deal will not go through, as you said. little chance that pfizer will do anything. we know that under the rules they cannot increase offer. on the other hand, astra said publicly they are not interested in this hit and they really want stay independent at this stage. therepfizer walks away, is at least a three-month cooling off.

period. what happens next to oth parties? >> obviously, it will depend a lot on the performance of astrazeneca over the next few months and the pressure they could have from the orders if do not looks are -- too successful or the of emerging market or japanese is not as high as the market expects. obviously, more pressure from orders. >> is picking up pressure from shareholders, they have to be disappointed the stock fell 10% or more last week on news that the deal was not actually going through. you think that pressure will grow? there is going to

be a three-month window. at that point, they could invite pfizer back. if they don't, they have a six-month window. you think astrazeneca shareholders will now be agitating for this deal to go through? again, it is for difficult to say. pretty pfizer gave ambitious targets. they're pretty long-term targets. they could deliver more value to share orders in the long-term, but obviously to come back to 48re price of around 47, almost as we have seen in the past week, that will take more time. shares were the really at this level because of the bids. for difficult to say at this stage what is going to happen. storyyou believe in the come at you believe in the sales

projections which were being put forward by pascal? they were very optimistic, $45 billion of sales by 2000 and 2023.-- but is he a little overly ambitious? yeah, we have to say looks very ambitious for us, almost unrealistic in our view. not because of the pipeline good, too are not early to say, but also because of the competition. if you look at immunotherapy, .hey are behind merck obviously, it is going to be very difficult for them to reach there -- foror example. among others in which we think that the targets are ambitious,

definitely. to bo deal runquist -- odile runquist. ♪

>> union group will commence construction of two hydroelectric lance that will start operating next year with investment close to 100 million dollars. the plants will generate around 27 megawatts of electric power and be linked to the national grid. ceo.ng us is union groups how important is peru to use? >> peru is growing seven percent this year. 10 years of very consistent growth. it has a huge amount of foreign reserves. 30 million people, that is going to generate good opportunities for power and power generation. >> how significant is this new hydroelectric plant in the view hydroelectric power?

>> over the next three years it is going to be very significant for peru and for us as a group, because we will be developing them from scratch. we are just now starting construction, but over the next three years we will be starting one every three months, all the way to complete the -- >> where else can you push your hydroelectric strategy within the region? >> the most interesting medium term of opportunity is interconnection. we expect over the next three bolivia, chile, brazil will be absolutely connected into one energy market. , $50, in chiley it is under 20. compare? those prices it is obvious a more expensive than coal and gas. >> it depends where you do it.

to be efficient in hyder generation, you need a big fall and a lot of water. peru werentry like you have rivers coming down the mountains coming of capacity factors that are above 90%. it makes it very efficient and good in terms of cost. we are able to generate electricity around $40 per megawatt. it is clean, renewable and very cheap. >> we need to talk about the world cup. you are heading over there. >> i'm going there for over geoeye for uruguay versus england. last time, the world cup was in brazil in 1950. we wanted heard we want to repeat that. >> uruguay could be the dark horse. >> i think we are the odds on favorite. like in uruguay

ahead of the world cup? >> i can tell you we are not going to be working a lot. we will be supporting the team and being there. if uruguay wins our group, who will come in second, it italy or england? >> i think england has very good chances. is a tough team, they're always there until the next -- until the last second. >> for our viewers, the second hour of the pulse is coming up. eurosceptics take on europe. we was due to francesca calie gallietti. >> incredible to think how well the national front did in france.

>> are you going to put up or shut up? i'm not being rude. its deadline date. >> will pfizer up their bid as the clock is running out? ♪

>> petro poroshenko claims victory in ukrainian elections. in kiev.ve >> skeptics take on europe as protest parties gain in elections. it is a wake-up up call for mainstream politicians. good morning to her viewers in europe, good evening to our