11 thousand 600 positions, that is what siemens plans to cut. it is all part of the restructuring and cost-cutting ser. joe kae >> the right to be forgotten is all about allowing europeans to disappear from the internet. more on that later. guy coming back to you. >> we're forgetting anything here today, caroline. the european markets are about to open. it will be interesting to see how bnp paribas deals with that news this morning. let's find out what is going on. manus cranny standing by at the touch. >> we have seven straight weeks of gains in the european equity market. the question is how will we close out the week. this is the longest judge in european -- since 2012. is making record highs. the yen is rising. the question is, is it the wrong

kind of inflation? willet temper the view from the bank of japan in terms of their ability to deliver more stimulus to bring the yen lower. prices rise for the 15th month in a row according to home craft. confidence is rising here. we have a positive number in the gf k index. for the first time since 2005. that surely can't go without note. smith and nephew were a big play yesterday. spanish and to get italian inflation data today. another break in the war of the dissipation story around europe. the portuguese central banker will are -- will also speak later today. midwest, the heart of the

united states in terms of how they're feeling. chicago purchasing managers index. some of the companies we are watching, we go down another five percent. on billion could be levied them. as a change in tone, a change of tack in the usa. get ready, credit suisse. i will talk about that in a little bit more detail. socgen's russian assets are going to deliver 7 million euros for the revenue. over 11,000 jobs potentially to go out of siemens. stock virtually unchanged. carton is off another five percent. guy, back to you. >> that is a very big number, isn't it? manus, thank you very

much. manus mentioned move on siemens. it is removing more than 11,000 effort to cutn costs. our international correspondent hans nichols is in berlin. jobs, yeah?ot >> it is an important distinction. we're talking about 11,600 takenons that will be away. some of those posts, some of those employees can be absorbed into other parts of the company. we don't have a number on that. it is positions, not jobs. is on the high end of what is been speculated or reported in local press, which was around 5000-10,000. aeser'sll part of joe k restructuring. clearly they're moving towards trimming costs. calls a quote from him on to investors.

about 20% of those we believe can be put to work elsewhere, but not there. they can be taken out of the system because the work goes away. >> you think about the 20%, it refers to the 11,600 number. his are jobs that are going to be restructured or taken away. also on the conference call, he was pressed on the idea of selling the health care unit. there've been hints of them wanting to get out of it. he said, we do not want to defend health care business, but we are trying to be prepared for anything that comes along. that, to me, is an indication that if someone comes along with the right offer, they may be willing to except it on the health care business. but ifke my house, someone offered me a silly price i would be prepared to take it. the elephant in the room we're not talking about is their cutting costs and positions, you have to think about what is happening with their alstom bid as well.

ge is proceeding along the lines that something is going to happen. nevertheless, something is going to happen. >> the question is if and when. we expect them to make a formal bid for alstom's energy business. about guaranteeing jobs for certain number of years. how strong will those guarantees be of more jobs in france or certainty of jobs in france, when elsewhere in the global siemens business, they're trimming positions? it is going to be hard to aeser.e that one for joe k >> thanks very much indeed. let's give sense of where these markets are right now. we have the head of market strategy at lloyds bank. good morning. up.ties up, up, for how long? the think it is the mix of

liquidity provision and the relative valuations, as well. hand-in-hand with this, it is worth remember and that the bond market has rallied. we have got tenure notes, even after a correction. every asset classes on a high, so to speak. >> volatility is low. can makely way people money, particularly as we are not getting this big normalization in a macro story, is to go for carrots trades come an incremental gain, if you like. it means until we see immaterial shift in how that game is being played, i think that boils down to either china or the federal reserve. either one of those would be the key swing factor. until that changes, people will play the same game. you could see another 2-3 months of equities. is volatility going to affect

the trade you're talking about? >> i think is really a matter of do we start to see from the u.s. strong enough data to harden up and bring forward their expectations on when the fed might start raising policy. normally, markets will anticipate those moves around nine months in advance. at the moment we are all 2015.ng q3 if the data starts to print really strong, because obviously we had a very weak q1, we will get a strong bounce back in q2. really, we'll need to see how q3 starts to shape up. the july and august data will really be pivotal. at shows ongoing momentum in the u.s.. people might start to bring forward the expectation of rate news. >> stay with us. wes have we got coming up?

a settlement growing by the day. bnp could be facing a $10 forion fine for the u.s. sanctions on violations. we will see you in a moment. ♪

>> welcome back. you're watching "on the move or cry and guy johnson. we are on your apple tv. how we are on the new amazon fire tv. we have it all covered. the anti-heart about may be

weeks away from what could be the largest criminal fine in u.s. banking history. there are some big numbers that have receded it. the u.s. government may be seeking more than $10 billion from the bank over sanctions violations. let's find out with the details are and talk about that number very manus cranny's back with more of the story very >> guy, under french or eu rules, harried by would not have roque in any rules. this is the regulator getting incredibly focused on moving the bar higher in terms of a fine and in terms of a guilty plea. the mood is changing, the severity is rising. it comes down to this. the misconduct is more egregious. the bank has not cooperated. comes down to regulators looking for information. if you don't play the ballgame, they can get hard and heavy.

that is what bnp party bar -- we thought we could get higher than ages eight. the sheer size and scale of this potential levy against party bus and an absolutely their message. you don't play ball with the regulators whether it is for tax evasion or for breaching sanctions, you you are owing to pay the price. aboutus, talk to me reparations for this, because they have known that the find is coming. the number i have this morning is one .1 of the reason line. we are looking at a provision that around 10 times. lie youll have it as a listing. as a line

this would the the largest criminal penalty, if it is imposed and if they plead guilty, it will be the largest criminal penalty ever. >> why the step up to the have not gone with the regulators. there's obviously some fairly cases involved. y the magnitude of the step of? why the beefing up of the response that we're seeing here? >> i think if you look at some , the protagonists involved lauske is the one to comes to mind. he had an article in the new york times. a couple of weeks ago, they balked at the fact that these

guys have the temerity to come in over the doorstep, ask for discount, when they had not cooperated. auske is a that, l gentleman. regulator, strident, forceful, and really wants to make up for the time and criticisms that have been levied against the regulators in the united dates of america that they have merely, as follows wall street is in turn, tap them on the wrist. over days are absolute the . back to you. >> thank you very much, indeed. let's continue with charles people. he is at lloyds bank. we are a few days away from an ecb needing. there could essentially be more than a rate cut. how do they deliver to keep the

markets on time. >> dev builds up an awful lot that's the asian market. just having the rates will not be enough. i think you're going to need to see liquidity provisions and, more importantly, given how many times we have done the cycle, the markets are really going to have to believe that this is going to have a material and packed at the economic level. previously, we have had rig up some the quiddity. engendered the proper economic coverage. we do think there is going to be something along the lines of the s l s u.k., where this funding to lending scheme force. or european market, much more so than in the u.s.. recovery theof

demand for credit and liquidity is not really that strong at the moment. they're going to have some way to go to really build confidence that people believe in this scenario at this point in time. we're generally a little bit skeptical that there's going to be much follow through when they actually act. it does depend on the magnitude. the key is how successful the plan will be at getting down to the grassroots. it looks like it is going to be successful, then you can have more optimism in the longer-term. --are the japanese the authorities being successful? optimally, yes. the imf report says yes they will hit this target in 2017.

that is fine, but you're fighting against certain fundamental structural forces in japan, particularly things like demographics. they make it difficult to believe in the strong growth, higher growth rate and higher inflation type of economy. expectations may have been quashed in the short term, but again, it is a bit like the sensitivity we are talking about with the ecb. the sensitivity to policy measures is inevitably going down. question is particularly with china, and stealingeaken back some growth from the rest of the reason, whether japan can sustain these kind of growth stories over the next two years. >> what you're telling me is that more stimulus is coming down the pipe. if you look at this sort of

gdp metric, as in what percentage of gdp are we going to -- we're probably going to cede another five to 10% of gdp in terms of ge to materially affect much. again, i'm not sure this is a story for 2014. it might be next year that we start to see the fight coming back into the japanese economy. and you need to see another policy response. proactive rather than reactive. when do we see the prices set in that means the nikkei starts to look vulnerable in late q3 and into q4. >> the same probably applies for the european market and american as well.

situation in europe starts to improve if the ecb acts. >> nice to see you. charles people joining us from lloyds bank. let's move on. the right to be forgotten. that is google's next challenge. the u.s. tech giant has assembled a task force to respond to the policies. caroline hyde has the details. caroline, a bit of a balancing act for google. >> a very difficult balancing act. they have to judge what is damaging, relevant information from what is in the public interest. from today, you can go online and get rid of links to information you don't want the world to have. if you are an individual, you can get a full lineup that links from other sites. the way you do is fill in the form and give the link of the

offending material coming to your country and you give your reason. is the data out of date? is it irrelevant are damaging. will have to come to the confusion as to whether or not it is parrot of the can make the decision, when it passes it over to the data protection agencies, so worried are they by the deluge, and even germany is thinking about setting up a whole new class of court. this is a very difficult balancing act. we have a task force to beat all task forces to really help come against his eu decision. you have the wikipedia cofounder and members from the u.n., they have lot experts in oxford academics to help decide the ethical and legal challenges posed by the web. how do they debate what is in the public interest? what fits your private information? with ceo larry page.

he said look, this could be a real problem. this could crucially be a problem for governments out there. that could be a real worry. alike of china put some ways and means of keeping things off the internet. could damage the new generation of startups? can hurt them? google has cash to splash to really navigate, let alone one to three man and woman band to set up websites. he is humble. he says we're trying to be more european. the biggest threat we did discuss this more, we didn't get rid of regulators and get talking. he vows to become more european. that to you. >> caroline, thank you very much, indeed.

thanks to caroline hyde. online will continue in two minutes. ♪

>> brooklyn brewery is trying to avoid becoming the next bud lite. is invading sweden. hans nichols did, as well. ♪ brooklyn brewery is a power brand with an enviable problem. it is getting to global and the world that craves proximity.

let the yeast to the hard work. >> mixing the right types of different yeast gives you a pallet of possibilities. >> stock holmes recently opened a new brewery. it is located in an old light bulb factory that was built for disaster. >> the idea was, if this one blows up, it will blow towards the water and not damage anything. give some ofto brooklyn lager's most loyal fans a beer brewed closer to home. >> use your growth and all locally produced feedstuffs. boot is a foodstuff. beer is a foodstuff.

>> this spent drain, you can really smell it, we'll go over to the water treatment plant, then get converted into biogas which will then help fuel the plant. >> you want to tap the demand for local products as well as sweden's thirst for micro beers. you go from buying cheap beers to mark spencer beers. growsve a euro value that more than the volume. i wouldn't say that the costs directly correlate, say make a bit more money. >> now for the taste test. two straight lines of beer. the stockholm brewed and in the brooklyn brewed. -- and then the brooklyn brewed. bloomberg,hols,

stockholm. >> how did i not get that gig? right away than to take a break. i met guy johnson tv. see a couple of minutes. am @guyjohnsontv. see you in a couple of minutes. ♪

>> welcome back. you are watching "on the move." i am guy johnson. hope your morning is going well. we are 30 minutes into the trading day. how are things shaping up? your french, not too well. europeans by and large, a little low. the reason for that, the banks are taking a bit of a battering over in france this morning. the cac 40 is losing ground as a result of that. it is not just bnp paribas. manus cranny is here with the details. there are some alarming statistics. >> there are. $10 billion, in reference to the key story which is that they floated transaction regulation

in the united states and regards to sanctions. i can tell you this. $10 billion, $10 million, that would be the net income of bnp theirs for only twice in history have they made more than $10 billion. in 2010 and 2007. mark barton did the stats. stock down 5.3%. the volume it is trading 2rough, you are seeing almost million, 3 million shares changed hands. that is approximately 60% more than an average day. that is the. last array. socgen, the cost of doing business in russia, the cost of the russian ruble on your bottom line, it looks like return on bank will be lower than anticipated. siemens, up 0.3% as equity

markets -- the dax virtually unchanged. you can see siemens taking the news quite well. they are reducing costs by over one billion euros and that can account for over 11,500 jobs. that is the state of play. volume up at bnp paribas. >> thank you. let's talk about the bloomberg top headlines this morning. the chief executive of unicredit expects the european central bank to begin an asset protest -- asset purchase program soon. spoke with bloomberg about the benefits of an expected rate cut next week. rates may help on the euro-$. forfor us, i think but

other economies in europe. banks, i think a program formedium-sized small banks capital and liquidity. >> japan's inflation accelerated in april to a 23 year high, something the ecb would like. consumer prices rose 3.2% from a year earlier. industrial output fell after a sales tax increase. even if you strip it out, the number is still pretty strong. the united states says ukrainian separatists are getting outside the system in the form of advanced weapons. pro-russian rebels used shoulder filed missiles to shoot down a ukrainian helicopter killing 14 soldiers. there has been a surge in fighting in the east of the country, around 160 kilometers from the russian border has been the epicenter. let's stay on ukraine.

the nation faces a russian gas bill that will reach $5.2 billion next week. as well a supply cut off. let's talk about what is --pening here with our enter international correspondent, hans nichols. let's go from beer to gas. story would be getting more attention if we were in the winter months. it is only because we are heading into summer and there is real conflict, real casualty in the east of ukraine. there is no agreement, no deal. everyone here in berlin trying to broker some sort of agreement. it may have had a setback yesterday when the energy minister of ukraine called russia an m&a. using language like that is not going to help them cut a deal. gas by $2 billion of the may 30, today, so we are getting the deadline.

more by$500 million june 7. you start paying down your gas bill and then once gas prime --gazprom gets the first tranche, they can start negotiating future prices. do witht of this has to the fact that ukraine feels russia has jacked up the prices some 80%. at the same time, since may, ukraine has been stockpiling gas. they have increased their intake by some five times, putting it all underground in storage tanks. they are bracing for what could be difficult negotiations and potentially a cutoff. >> thanks very much indeed, hans nichols. let's get more on the ukrainian gas negotiations. chris, a founder of macro advisory. he joins us from moscow. good morning. the ukrainians now have the money thanks to the imf. are we going to see a deal?

>> i expect that we will see a deal. there is a lot of pressure coming from europe, from germany . talks are taking place in berlin. the germans are pushing ukraine to use some of the bailout money. in total, ukraine probably has billion between the imf, euro and the bond issue. they are using some of that to pay down the extending debt and put pressure on both sides to come up with terms of agreement on a new contract. nice that the imf and eu can help support ga zprom. >> i guess from the russian perspective, this is a highly politicized dispute over unpaid utility bills. depending on which side of the political divide you are on, it comes down to the fact that the

gas bill hasn't been paid. the existing contract is clearly unfair to ukraine. they need to pay down some of the outstanding debt. also there needs to be a renegotiation of the contract. that is the issue on the table the terms of that new contract. cracks the focus is more on what is happening in the east of the country. choppers being down, etc. quite large-scale fighting. -- who walk me through is pulling the strings here? saying thats are the separatists are getting significant outside help, that they have been given advanced weapons. there seems to be some evidence of this from the reporting we are seeing on the ground. here? whatcow's gain are they trying to do? they have a leader in kiev that

sounds like he is willing to negotiate. >> my view has always been that what russia really wanted in the east was for kiev to accept that it would have to enter talks on some sort of a federalism or greater autonomy for the east. now, hopefully the violence can end soon. i think the legacy of this pilot is that there will have to be some sort of federalism or autonomy in the east. that was moscow's objective. clearly the situation now is almost out of everybody's control. the separatists are getting weapons from somebody. they are taking weapons from ukrainian army as well. moscow what we here in is similar to what we hear from kiev. very muchnments would like this situation to calm down so they could go back to -- quite political normality, but at least maybe go back to some economic pragmatism and work out .ome deals

i think moscow's objective is in termst dragged in of military action or being accused of military action. they would like the situation to calm down. next week week president putin takes his first trip to europe, the celebrations in normandy. he will meet with president obama and european leaders. i think this is an important backdrop. i think russia would like to go into those meetings not being accused of anymore support. chris, how much rope are they prepared to give poroshenko in terms of dealing with what looks like a situation that to everybody is out of control in the east of the country? they are prepared to cut him a little bit of slack, maybe allow more military action. is that the kind of story you

are telling me here? >> yes, that is exactly the story. for sure, we are hearing criticism from the russian foreign ministry and calling for an end to the violence as you expect. russia pulled troops back from the border which has now been shown. the indications are that the kremlin is definitely getting the new president him time with a view to hopefully -- and the next couple of weeks there can be some discussions between both sides. president poroshenko has already said that one of his first visits will be to moscow. he wants to sit down with president putin and work out a pragmatic compromise deal. i think that is what the russians would like as well. i think there will be a lot of criticism over what is happening in the east that i don't think it will go any further than criticism at this stage.

>> nice to see you, thanks for your views. chris weafer joining us from macro advisory. coming up, a look at modi's momentum. now that the world's biggest election is over and india has its new prime minister, we will head to mumbai for details of what his priorities are. that is coming up next. musksweden to space, elon has unveiled his latest creation, the dragon v2. the space chip is designed to ferry up to seven astronauts. the capsule has eight pop-out legs and reentry rockets that let it and anywhere back on earth. it will be ready for use within a couple years. ♪

>> good morning. welcome back. i am guy johnson in london. this is "on the move." let's talk about india. the election is over and prime minister modi faces the extraordinary task of turning around and he is economy in his second cabinet meeting, the new leader laid out his top 10 priorities for his first 100 days in office. the math is quite easy, the task

is not. bloomberg tv has the details from him by. what topso me about the agenda here. growth has to be on top of the agenda. the modi government has an uphill task ahead of it. the sentiment has pushed equity markets to a record high. growthices, falling making india a more business friendly environment, that is the date promise modi has on his to do list. the newly appointed prime minister has asked all ministers to make a 100 day agenda listing top priorities for their ministry. reports are indicating the prime minister wants to ensure consistent policy that is a big

one. global entities have shied away from making investments in the country. understand that there is a meeting next year of the top global brokerages with the finance ministry officials to gauge expectations from the market. on the other side we have a slowdown on industrial production as well. prime minister modi is likely to focus on infrastructure. seems like at large burden of expectations for the government and a lot to do as the government rolls out its business officially. >> so, growth, growth, growth. we are going to get gdp out later. tell me what we are expecting. about 5% growth and not any good news any time soon. 4.7% to be precise. 5%t will result in a sub

growth from april to march, making it the worst run in 25 years. industrial activity is coming in at a 22 year low. agriculture as well, nothing much to write home about. with the prospect of a monsoon, that's not looking very bright for 2014. all in all, it seems like a difficult economy that prime minister modi is inheriting. >> i guess that's why he was elected. thank you very much indeed. we are going to continue the conversation on india ahead of it gdp reading a little later today. we are going to speak to the founder and chairman of cobra beer in the next hour. in the meantime, let's bring you up to speed with some of today's company news.

removing at least 11,000 position is. andcompany streamlines places a new divisional structure. some employees will be assigned to other roles. one spanish government approves oil drilling. the approval signal success in the campaign to start excavation near islands. the supreme court is set to roll on a challenge to its expiration permit. ceo steverosoft ballmer has won the bidding war for the u.s. basketball team, the los angeles clippers. er will pay apparently $2 billion to buy the team from shelley and donald sterling. mer outbid at least four

other suitors. coming up, it pays to drive for uber. the car service recently announced drivers make $100,000 a year. compare that to $40,000 average salary for a new york city taxi driver and you can see why people would want to go for the gig. cans talk about why uber afford to pay these kind of numbers. we will do that after a short break. ♪

>> welcome back. i am guy johnson here in london. uber announced this week that the median salary for one of its drivers in new york city could reach $100,000 a year. with built-in tips, low or no service fees and no annual membership charges, you have to wonder, how does uber get paid? >> how does uber make money? a mobile app that connects passengers to drivers. they hail drivers not from the curb but from the comfort of their own phone. company has been stealing

passengers and drivers from companies and city cabs ever since its launch in 2009. net annual revenues top $200 million according to internal numbers which makes it worth more than $10 billion. that is because over -- uber is growing fast. its mobile app helps answer around a million requests every week, taking a 20% cut from each fair. uber is a middleman. uber doesn't actually own any inventory, which helps keep costs down. uber may want you and not just as a passenger. now, we are nearly an hour into friday's trading session

here in europe. manus cranny is back with me. i have been checking on a few stats. bnp paribas. the stock, bonds and credits to removing this morning. thisthing reacting to incredibly large number being speculated about. $10 billion. >> two weeks ago we were talking about $5 billion. hsbc when they breached sanctions, paid $2 billion. we have got 10 times more potential. morning, bond markets, nine of the most active bonds being traded in europe today are. bob bonds. the extra premium they are -- are paribas bonds. the extra premium they are paying exploded. that is quite an extra premium. i have not got the answer to

this. how do you cough up $10 billion? if the fine comes down the pipe next week, i know they have got access to capital. i know they can draw upon various credit lines. $10 billion is a lot. >> it is a big chunk of their market cap. the credit markets also reacting to the expectation. they are going to have to go this way or range money. >> changes the dividend story. trying to build capital to satisfy the regulator. slapped on the head now by the american regulator. it is almost like revolving doors. >> 10 billion is a big number but it also depends on what the plea is. if the plea is painful as well, you could end up with further charges down the road. it is not even if we have got a hurdle on this number completely yet. >> the other thing to consider

is, the regulator who flew the kite back in the standard charter case, he was the regulator who flew the kite saying, let's consider dealing with the banking license in new york. i am not saying that is what will happen. it might happen. license, that u.s. banking license, the cost of that license -- >> reputational cost as well. >> but the sheer cost of having to deal with the dollar system, having to be there. you wonder, 10 years down the road, 20 years down the road, do they have the same power they do now? >> this is just ratcheting up of regulators who have been accused of perhaps being a little bit lax in terms of how they have treated wall street. this is about looking overseas as well. this is quid pro quo. this is america versus europe.

interesting, the google story on one hand and the banking story on the other hand. manus, thank you very much indeed. stay with bloomberg television. i will be back with "the pulse" coming up in the next hour. ♪

>> the biggest criminal penalty in u.s. history. bnp paribas faces a $10 billion fine for breaking sanctions. siemens streamlines europe's largest engineering company, cutting nearly 12,000 positions. your privacy protected. to eu demands. the you have the right to be forgotten? good morning, everybody. you are watching "the pulse