>> he must engage with ukraine. we are live with both presidents to commemorate the d-day commemoration in d-day. >> president obama says he will potential finehe for sanctions. >> new york's top banking regulator is said to be pressing the mp did dismiss one of its top executives. close european stocks near a six-year high as the ecb cuts interest rates to unprecedented lows and boosts lending.

>> hello, welcome to "countdown ." >> a warm welcome to the program. 6:00 in london this friday morning. bloomberg reporters are standing by across the world, ready to deliver the stories. here line height has a check on how investors are digesting the ecb moves. >> ryan chilcote is in normandy on the 70th anniversary of d-day. hans nichols is in berlin with details of the dinner with obama and putin. >> anticipation and analysis were weeks in the making. mario draghi cut rates to unprecedented lows and beefed up lending to banks. he is fighting deflation. investors are still digesting it and dissecting his words. >> we think this is a significant package. are we finished?

the answer is no. mandate,e, within our we are finished here. hefty to-donly is a list at the ecb, with commentators calling it a big bang. for more, caroline hyde, the market reaction? how has it been passed on? >> to be honest, a bit of a disappointment. there was euphoria at the start. everybody thought, wow, what a set of promises we've got. he lobbed a few dovish grenades, cutting interest rates, the negative deposit rate charging banks to store the money with the ecb. basically he pulled everything out of his toolbox to try to get money into the system. cashary policy, getting

into banks, get it being blended, -- get it being lended to stop the lackluster inflation we have hovering at a quarter of the target. more easy access to money. overall, 400 billion euro liquidity program, an end to sterilization. they will not be absorbing the extra cash anymore in the system. they will let it flow freely. intensifying, they say, their work to purchase asset act securities. no qe, no quantitative easing. london capital group said traders were disappointed he did not pull out the quantitative easing bazooka. stocks surged one percent, then closing up 1.4%. 1.1% of itspped overall value, then closing higher. clearly the market had priced all of this in. they really wanted something quite sensational. >> he said at the end we are not

finished, which could open the door to qe if necessary in the future. >> precisely, and i think that is what he is leaving the door open to and maybe that is where the markets will force his hand. at the moment what is really wearing investors, kiki mean them cautious as keeping them cautious as they downgraded their outlook. time,ion in two years 2016, will only be 1.4%. they still feel with this bundle they cannot quite push it up enough. clearly i think what everyone wants to is to see bond purchases out right. remember, regulator still need to be assessed. they need to do the work. they cannot unveil this quite yet. the systems are not in place. i think this is the ongoing concern. mario draghi has done everything he could come up willing every tool out of his box. i think the market will trade perhaps a little higher.

there is no euphoria. >> caroline, thank you. >> the 70th anniversary of the d-day landing as world leaders gather read normandy to commemorate. that is where ryan chilcote is today. what is on the agenda today? >> good morning, mark. the french president francois leading thel be ceremonies. he will not be the only leader in town, but the president of the united states is here, the british prime and mr., the german chancellor, the president of russia, of the ukraine, they are all joining in the ceremonies with the remaining veterans of that day 70 years ago. also of course they will discuss the situation in ukraine, trying to find a way out of the crisis. those discussions have been going on now for two days in , which isith the g7 the g-8 minus russia because it

was kicked out because of the ukraine. also in paris, very much last night, with the russians. the russian president meeting with british prime investor, asting with french president they discussed directly with him and representatives of the g7 what can be done to de-escalate this crisis in eastern europe. >> will the diplomacy that has taken place lead to anything concrete in ukraine? judge of that is always the fighting on the ground. the fighting in eastern ukraine continues. some people say the longer that goes on, the more difficult it is going to be to broker a deal. we do know that president hollande and president obama spent most of their time yesterday talking about how to get some kind of deal going for ukraine. they have their differences, also the u.s. very upset about

the french's decision to sell warships to russia, but they agreed what they really want to happen today in the meeting between the russian and ukrainian president, they consider that to be absolutely key if there is going to be any peace in ukraine. they would also be useful if down withputin sat president obama. they will be at lunch. we don't go if they will have a formal conversation, but they both seem to be ready to at least chat. what is interesting is yesterday what we have seen, perhaps even more today because of the talk of possibly a meeting between the ukrainian and russian president, with french mediation, the french are almost acting as intermediaries for the for ukraine. u.s. we'll have to see, of course, but there is a lot of talk going on behind the seats to try to make the meeting happened between the russian and ukrainian presidents. some of the french are saying

they don't want to talk about all the efforts publicly because they are afraid they could jinx it. >> thanks, ryan. ryan chilcote in normandy, at the 70th anniversary of the d-day landing. businesses are being caught up in some of the geopolitical tension. disagreements and no dessert, president barack obama and francois hollande plastic dinner over u.s. actions against the mp and french arms sales to russia. hans nichols is back from brussels. he will tell us more from berlin. how do we know dinner was not entirely a sedate affair? >> because the french officials gave their a version of events. we know that's because we'll may know what president hollande had for dinner. he had the sea bass. we don't know what president obama had. this is the french version of offense. we know that obama pressed and criticize the french leader on basically rewarding russian behavior for this play delivery

of the ellicott their carriers. holland shot back and said he thought the u.s. was treating bnp paribas too harshly when it comes to the $10 billion fine. we know what obama's response to that might have been because he addressed it earlier in brussels. let's listen. answer on the banking cases is short and simple. their tradition of the united states is that the president does not meddle in prosecutions. we don't call the attorney general. i don't pick up the phone and tell the attorney general how to prosecute cases. i do not push for settlements of cases that have been brought. >> this question over the fine on bnp paribas is not going away. french finance minister poured

fire on it yesterday in a debate in a newspaper interview by saying it could impact u.s.-e.u. free-trade agreements. what's talk about these planned warships that are supposed to be delivered in october. june 22 is the date that some 400 russians will come to an atlantic coast port in france to get their training. it is a $1.6 billion contract. carryips that helicopters, quite impressive war fighting ships. it means for hundred jobs for france. that is really the issue. protect may want to those jobs. the u.s. is wire you rewarding russian behavior. so far the ships are still scheduled for delivery. >> president obama said he would not get involved in the bnp case, but the top new york regulator is seeking the dismissal of a top bnp executive? >> this and a remarkable story that broke last night. this is the top state regulator

of new york. somebody president obama has virtually zero control over. he is asking the coo of bnp paribas be dismissed along with 12 other executives. have beentives charged with criminal wrongdoing, but this is an indication of the regulatory theles bnp faces with federal level and the state level, with state banking regulators. again, obama has no say over this. it will be a challenging conversation going forward. hollandehat obama and did not get dessert because hollande had his dessert with putin. dinner with u.s. president, dessert with the president of russia. guys? >> that is a busy evening, a busy schedule. hans, thank you very much. takesing up, mario draghi one of the main rates negative.

we will discuss the latest move to stimulate europe's economy. ♪

>> first. bloomberg. >> time for today's company news.

tensions in the ukraine are impacting western businesses in russia because banks have become reluctant to fund projects. the chief executive officer spoke exclusively with bloomberg television. >> the first thing which is having an impact on the business with russia, not only total but all of the other banks, including americans. financial lot of institutions that have artie been taking -- that have already been taking i would say a cautious position, which means even if it's not for bid and, let's wait and see before we continue to lend money. total. was the ceo of last month they agreed to set up a venture to seek oil in siberia. bank of america would provide at least $5 billion to consumers as

part of a proposed settlement of a probe into its handling of mortgages at the head of the financial crisis. u.s. prosecutors have been seeking more than $13 billion from the firm to resolve investigations into the sales of mortgage backed securities. prada fell to the lowest in the most two years in hong kong trading after profit missed analyst estimates following a tour is him slump that hit sales in europe. sales dropped 4.1% in april. they forecast low single sale growth this year. welcome back to "countdown." i'm anna edwards. >> i'm mark barton. bankuropean central becomes the first major central bank to take one of its main rates negative. the latest measure for mario draghi, are they enough to get credit flowing into europe's economy? good morning. he rolled out his big bazooka. was it enough for you?

>> well, it was a very high press conference, but in terms of delivery, we got very little. the cut in the deposit rate into negative territory was much expected. the ecb had already felt sterilized in the ecb program, and some of that was already in the market. the result so an announcement in the form of a new credit targeting acronym to the of of that soup of the ecb. >> peltro. >> it was a very bold tag of 400 billion. these are only coming later, after the bank stress tests. the ecb understands ultimately cost of liquidity, it is the supply. we have a lot of announcements. comings of what is an

of the short-term and what is coming after, there is the question. drivemight be trying to the short-term market reaction, which has been short-lived. the longer-term impact, try to give us a figure of how much, aside from the 400 billion coming later, try to give a figure how much extreme liquidity is put into the markets, how successfully could be in getting money out to these businesses who need it. >> it looks like abe big bazooka in the short-term. the end of sterilization it will theoretically leave 300 billion in the bank accounts on the ecb balance sheet, together government bonds that have not matured. in the short term, that will increase the size of the money in the money markets. the question is how banks will respond to it afterwards. a low deposit rate means that

angst and not what to hold liquidity in money markets. increase iniprocal demand for cash, which there is not really because the ecb is pumping all of this cash into the markets, the banks are going to do one of two things. one, start repaying at a faster pace. is try to convert cash into the longer end of the , which is government bonds, for sample. >> instead of lending it to people. >> that's right. this is ahead of the bank stress tests. think short term, i probably the money is going around the system, but not exactly where they wanted it. the real worry is deposit rates will basically decay for the money markets ahead, which means rates inct for the ecb

the short term. >> what about out right qe? how soon before that is considered within the ecb? >> they are already facing diminishing policy returns. really, the money market is no longer relevant. about the quantitative stimulus the ecb can deliver. what we heard yesterday, two 's to supportcb possibili the asset-backed markets, which is key to disentangle the european credit mechanism from the constraints of balance sheets. that is very much dependent on how the bank securitization market goes on, which depends on the regulatory developments and the banks unwillingness to take more risks on their books. in the form of a broad-based

acid are just, it is very encouraging, mario draghi mentioned this. will need to see a much weaker inflation forecasts, close to one percent, something the ecb has never forecast before. >> lena, thank you very much. we will look ahead to the u.s. jobs were or that is out later and have other conversations with lena when we come back. ♪

welcome back to "countdown." i'm mark barton. i'm anna edwards. >> we're back with lena. let's look ahead to the u.s. jobs report. what does the number have to look like to change the path of tinkering the federal reserve has embarked upon? this is one of the most potential market-changing reports of the week. is the nonfarm payroll headline which will impact the markets in the second quarter. the contraction that the u.s. economy tried in q1. and of course there is the unemployment rate for how the the asset ratet hikes. it's that part where the

questions are. the most heated debate on the fomc. hasthe fed historically interpreted unemployment rates is very different in terms of the economic environment in the context. the reason is there has been distortion in the labor markets that has fallen in labor participation rate. there is the rising gap between short-term and long-term unemployment. us initiallyells there could be more in the economy, which begins to materialize with the recovery bringing more people out of the woodwork into the labor market. in the fall and the unemployment rate will be slower going forward. i could potentially leaving this. >> you are going for the cyclical argument rather than the structural argument, pushing back the rate forecast to the first half of 2016? which is later than many. >> i think so, absolutely.

the markets have already priced out some of the rate hikes the first half of next year. there was confusion about janet yellen communication earlier this year. i think that very much depends on how quickly we are going to get to the point where there are slack in the labor market that is diminishing so fast that the fed will reach their mandate for unemployment and also starred generally worrying about inflation pressures. yearsa, could there be a between the first bank i have -- bank i can live in the fed? >> i think so. it is still very much a debate about the levels of capacity and how inflation and recovery, and could be a long time. >> lena, thank you very much. >> coming up, world leaders gather for d-day as the crisis

in ukraine limbs. will obama and putin cross paths in france? ♪

check, for the fx looking at the euro against the dollar. from this graph, coming into the meeting yesterday, the euro fell , the ecb cutting rates, announcing all sorts of nonconventional measures. 1.35,ro fell from 1.36 to and then through the afternoon and this morning, the euro has come back and ended up higher than it was before the ecb meeting yesterday, 1.3658.

mario draghi is trying to bring down the euro, not increase it, so he has not achieve those aims. according to analysts, they still think the euro will be 1.34 against the dollar in september, 1.32 by the end of the year. 8, the euro trading higher than it was before the ecb yesterday announced its intentions to cut interest rates. >> i'm anna edwards. these are the bloomberg top headlines -- the new york top banking regulators is pushing bnp paribas to dismiss one of its top officers and sinking the departure of another senior executive and 12 other employees. that is a settlement negotiation with the u.s. over alleged sanction violations. the bank is also facing a potential $10 billion fine. we have been speaking with the land's finance minister.

ukrainets to russia and have been affected in the first quarter. the declines have been almost two digits in the case of russia, and single digit the kleins and ukraine. polish firms are able to cope with this to a large extent thanks tohe better -- the better business climate in the west, but also a substantial improvement in the cost, for sample. >> the 70th anniversary of the d-day landing. world leaders including barack obama and vladimir putin are in normandy. so far, they have no plans to meet. obama says they are bound to cross paths. >> i have no doubt that i will see mr. putin. he and i have always had a businesslike relationship. it is entirely appropriate he is

there to commemorate d-day, given the extraordinary sacrifices that were made by the people of the soviet union during world war ii. >> asian stocks heading for a four-week advance after the ecb announced unprecedented measures. david is in hong kong. the reaction seems to be muted today? well, that's if you look at the regional investments. good morning. not a lot happening when you look across the markets. at this point, the game seemed to be between a quarter to a third of a percent, but still gains. fairly uneventful session in tokyo, swinging between this. hong kong, the hang seng is lower, so it is really about southeast asia keeping things afloat. here we go, the nikkei 225 up

.1%. , the yen, theasia aussie and kiwi just about flat. , lateray we had the ecb we have u.s. jobs. there's not a lot of conviction right now, no reason. >> david, shares of product have slumped. what's going on? a earnings missed for prada, big drop in shares. leslie, 5.9%. it was as low as 6.5%. just about the worst day for shares in about one and a half years. looking at the earnings, looking at a drop of income of about a quarter, 25%. that missed the median by 25 million euros for the first quarter. it comes down to less shopping

from the chinese and europeans, a lot of the luxury houses have become dependent on chinese shoppers coming here from asia to europe. what has happened, as you perhaps a may know, we have seen a lot of strength. trips a little more expensive, which is why perhaps we are seeing more shoppers come here to hong kong. shares down, two-year low right now. , cimb researchk cutting the stock in hong kong to reduced. thanks, david, from hong kong. >> president obama's european trip ends today in france. he and other world leaders gathered to mark the 70th anniversary of the world war ii d-day landings. commemoration includes a lunch with mr. obama and russian president vladimir putin present. no formal talks have been announced, but they may speak. for more, we're joined by john packer.

charles, the q4 coming in. we heard this week from president obama when he was at the g7 there was an opportunity to warn president putin he wants him to end the rebellion in eastern ukraine, wants him to change course on ukraine. are we clear where the bar allies for where the russian should or should not be to avoid sanctions? >> yeah, i think that the only thing that would trigger rate rolling out of additional sanctions most likely from the united states rather than from the european union would be clear evidence russia is directly supporting military activity in eastern ukraine. russias wide suspicion once the east of ukraine to remain unstable, and there is nothing wrong in their rise with what's going on in eastern ukraine, the escalating military conflict there. i think the president is

threatening the sanctions, but until there is actual proof that russia is manipulating events directly in eastern ukraine, we probably will not see sanctions just yet. >> as you said, charles, it seems as if in europe, if the sanctions take place, will not be part of it. that is not a unified response. what does putin think of that? responsenot a unified between the european union and the united states, and this is a point of divergence between the united states and the e.u. we have artie seen in the rounds of sanctions that have been rolled out. a point of there was disagreement between the american president and the french president over the military program that france is providing to russia. economic relationships and diplomatic relationships and the europeantate union is much closer and much more intertwined with russia than the united states.

the united states may plow ahead with sanctions. the european union will probably stay back. >> we talked about the relationship between obama and putin, and there is focus on whether they will meet, questions over that, but what about the relationship between president putin and president parrish ankle of ukraine? many people are looking to see how he deals with the new leader of ukraine. >> very careful, measured relationship right now. president putin said we should be treating the results of the ukrainian elections with respect. yesterday we had news russian ambassador to ukraine will be attending the inauguration of mr. parrisachenko. that is a step in the direction towards acknowledgment or recognition of the new regime in kiev. the biggest complaint russia had against the interim government in kiev is it was a legitimate

and they grabbed power. now there is a situation where you have an elected official who has been ratified by the public. is probablytin taking careful steps towards opening a dialogue with him. yesterday, atat one point haranguing putin about crimea, but at the same breath saying yes, we will deliver sophisticated warships. explain, how does that work? >> no easy explanations to international diplomacy in the midst of enormous crises like this. we have lots of competing imperatives. there is a -- unification of policy and a stance against what happened in crimea. nobody in the western diplomatic community has recognized the annexation of crimea.

i think what france is trying to do and what other countries have done is they have decoupled the economic relationship and the political relationship. they are dealing with them on separate tracks. that happens in international relations. you can harangue people on the political front -- >> but you have decoupled it yourself, having if? >> -- haven't you? >> the french have a clear message because that is jobs and industry, and the president of france is in no position right now to mothball industrial projects in france. you can imagine if these were projects in the shipyards and we shut those down. that would be hugely economically damaging and politically unpopular. >> charles, thank you very much for joining us. charles hecker, global research director at control risk. >> how many days until the world cup? six days.

more of the latest news from the world cup coming up. ♪

>> the world cup kicks off in brazil thursday. arede janeiro police cracking down on ticket scalpers . they have arrested two people in selling tickets

at inflated prices online, charging more than face value being a crime in brazil. tickets for the final are being advertised online for at least 4,760. >> teachers took to the streets to protest against the world cup and demand better salaries. they are angry about the amount of money being spent on the event and say it would have been better spent on education and health. in recent months, brazil has seen demonstrations mostly in rio and são paulo on a daily basis. >> german players face the most uncomfortable start to the world cup in brazil of any team. team faces an average temperature of 28 degrees centigrade and high humidity for its first three games.

italy faces the second-highest discomfort ranking. the italian team has been exercising and a type of sauna and a wooden building to prepare for the conditions. good news for england, they face italy on their group. only you would find the discomfort index. for more on the story, one of the smartest growing european tech startups after raising $60 million, its founders are taking the plunge. let's hear what they're spending the money on. come and joins us caroline hyde is with us for the discussion. thank you very much for coming to see us. what are you doing with the cash? we have seen the adverts around london. i assume that's part of the answer. that are in the category is not yet very famous. stayingon't think about in a home and they travel

somewhere. we need to educate them on that possibility. >> how do you differentiate yourself from the competition? >> such as airbnb. >> we don't do air beds or spare rooms or couches. people come into your home, we are very popular especially with families. 60% of our bookings come from families because it's a very practical alternative to a hotel for them. instead of a room or your cream together, you have an apartment or a house that cost less than the hotel. >> you are by and large funded by accel partners, some of the best backers of tech startups. how do you distinguish yourself as a tacked on to nor -- as a tech entrepreneur?

>> i have an unconventional background. i studied hospitality management. basically i studied that. i guess another big difference is the fact i started the company with my wife. we are not divorced, we are still working together. makes ustwo things rather unique, i would think. bulbhat was the light moment, when you went to a hotel or rented a room? rented an apartment. it was my first time trying this kind of thing on my own. it is an apartment in a foreign city, with euro kitchen. we love that, but we hated the booking process.

we had toe place, negotiate the price of the phone, sign the contract, send it by fax. the whole concept was a bummer of an experience. we said let's make it easier to book the apartment and houses. if we do that, many more people would stay that way. $60 million that you have race so far come where do you put it? how scary is it? give us a sense how you have suddenly managed to events all these high stake individuals to give you their cash. how do you spend it wisely, what do you promote the money on? day, it'send of the sort of being intimately convinced your investments make sense. so we have a bunch of metrics that we track. come fromlls consumer, growth, cost of

acquisition of new properties, so on and so forth. as soon as those go in the right direction, i have no problem spending the cash. >> you have ambitions to list one day, sell shares? do you know what your valuation is? >> we are not sure because our last round of financing was a bit more than a year ago. we don't know what our valuation is today. the ambition is when you get these on board, you have to have a conference. >> is your valuation in the billions? airbnb is $10 billion. are you in the billions? >> i don't know. >> but you would like to go to the market. do you have a timeline? >> no, to me it's all about achieving our ambition right now. getting our share of the market. once that's done, then we can think of it, but it's too early

at this stage. >> should we start a business with our other half? is that we are advising? >> i would advise it. probably, yes. >> for what reason? >> because when you start a business, you need to really trust the people that you started with. you have to be able to be extremely direct, and who can you be more direct with than your spouse? that's very helpful. we can just tell it like it is. >> thank you very much. the ceo and founder of housetrip. >> coming up, how to run a stately home. tips on making your house look amazing even on a tight touch it. ♪

welcome back to "countdown." i'm anna edwards. >> i'm mark barton. >> we have new data from the berlin city authority that bike riding has gone up 44% in 14 years. the interesting thing, since

1983, they have been counting at certain intersections. they had somebody count the intersection. there is one intersection that is a good metric of this. they use the winter months. i know that biking is very big in london, but in berlin they are everywhere. guys? >> thanks, hans. >> apparently, we should nap. so says somebody from a u.s. college she was a brain analyst. he says we have become obsessed with cramming all of our sleep into the night. in fact what we should be doing napaking a 30-, 90 minute in the afternoon to become more creative, apparently. relativelyt's a small story, but it's interesting, spanish and the italians are doing it right. for creativity, go to bed. >> there is a saying, go to bed

after lunch. the trouble with the shift, i find it hard to stay awake. upon these hours, you wake and feel dreadful. >> in the times, a baroness to the trifle has come up with what -- paper calls cg advice for what the paper calls sage advice. she wants to be able to throw parties for 200 people despite tough economic times. the us is how you do it. served late iter food. always let your guests get it themselves. the buffet option sounds good. says, why reuse napkins? get good dealso on furniture at local auctions, and she is currently selling

some. clearly very up with the tech latest. don't bother with the marquee, give all your guests a hat. have the one corner you the united legend who basically a few weeks ago said he may be past his peak. doubting whether the manager had the courage to drop them. the right corner, you have wayne rudy, the manchester united former teammate of paul, who has come out and said it's wrong what he said. "i'm not interested in what anyone else has to say, i a major student what roy has to say, people have their opinions, but it don't agree with them. he has been a teammate of mine but he has also been away from the team for some time, so shut it." >> next hour, disagreement and

no dessert. more details when we come back. ♪

>> obama uses the g7 to warn putin he must engage with ukraine. >> both leaders dine with separately.llande president obama says he will not meddle in the bnp paribas potential find. bankingew york's top regulator is said to be pressing bnp to disburse -- dismiss one of its top executives. intereste ecb cuts rates to unprecedented lows and boost lending.

> welcome back to "countdown" i'm mark barton. >> i'm anna edwards. are standingorters by across the world, ready to deliver the stories that will drive your day. chilcote is in normandy on the 70 denver three of d-day. >> hans nichols is in berlin. on howe hyde has a check investors are digesting the ecb moves. >> the 70th anniversary of the d-day landings. world leaders are gathering in normandy to commemorate. that is where we find ryan chilcote. give us a flavor of what is happening there. good morning. just in two hours or less, president francois hollande is going to lead the d-day ceremony. the british prime minister is

going to be here, the german states alert, the president of russia, the president of ukraine. they will be gathering with veterans on the 70th anniversary of the day. they will also be talking about ukraine. those cover sages began a couple days ago. first, the g7 minus russia. yesterday in paris, the russian president meeting with british prime minister. vladimir putin also meeting with french president. all of this design to prepare for today, more talks on how to de-escalate the crisis in ukraine. >> will this diplomacy or these conversations taking place lead to anything concrete on ukraine? >> that's a good question. that depends on what happens, in some sense, militarily. fighting continues in eastern ukraine even today. we know when president obama sat down with president hollande yesterday for a dinner at a

french restaurant, they talked not just about their squabbles over bnp paribas and the u.s.'s reservation about france selling warships to russia as the world is trying to isolate them, but how to find some kind of way out of the crisis, what they can do today can creepily to promote a dialogue. the french delegation told us their big land is to try to get the russian president to sit down with the ukrainian president. there has been talk about this. meeting happening today, possibly mediated by president hollande. the french have almost emerged as intermediaries between the russians and the united states. the united states, the intermediary between the ukraine and everybody else. that dynamic is obviously an interesting one going into today. what would also be helpful of

course is to find a way out of the crisis if president clinton also met with president obama. they will be at the same lunch. toy both said they are ready speak, but there is no formal meeting planned. in any case, president clinton and the president-elect of ukraine, their meeting cannot ukraine peace in without those leader sitting down and hashing out their differences. , thank you very much come reporting from normandy. president barack obama and francois hollande clashed over u.s. sanctions over bnp paribas and french arms sales to russia. hans nichols is back from brussels, in berlin today to tell us more. how do we know that dinner was not entirely a sedate affair? >> because french officials gave a readout of it. hadnly know what hollande

for dinner, sea bass. left unknown to history what president obama had. obama clearly defended his position. on bnp. position paribas, the justice department looking at $10 billion of fines. andlso chastised hollande said don't reward rusher with warships that are scheduled. you don't want to reward bad behavior. here is obama's defense when hollande pressed him about the justice investigation. >> my answer on the banking case is short and simple -- the tradition of the united states is that the president does not meddle in prosecutions. we don't call the attorney general. then't pick up the phone and tell the attorney

general had to prosecute cases that have been brought. i do not push for settlements on cases that have been brought. >> the size and scope of this spat over bnp paribas is not going away anytime soon. yesterday it was further escalated when the french finance minister talked about maybe having a potential hold on freeidea of the u.s.-e.u. trade agreement because of the $10 billion fine. moving onto the arms sale come here is why it is important to hollande -- it means jobs. 400 jobs, 1.6 billion dollar contract. there are two warships scheduled for delivery in october, but there is another trigger, june arewhen 400 russian sailors set to arrive in france to begin their training. look for that to be a potential pressure point on the french on this deal. e.u.ple days later,

leaders will be meeting again to consider a potential third round of sanctions. >> bnp paribas, the latest is the top new york banking regulator seems to be seeking the dismissal of an executive. what do we know? >> according to a person familiar with the matter, great reporting from our colleagues in new york, the top new york bank regulator wants to see not just the chief operating officer of bnp paribas loses job, he also wants 12 others executives to be dismissed. you could make a case that the obama administration is in charge of the department of justice, setting the tone of the investigation. obama has no control over new york banking regulators. it will be a variety of wrinkles. at $10 as the fine stays billion, which we think it will, it will be continued conflict between france and the u.s. on this issue. >> hans, back in berlin, thank you. >> the anticipation and analysis

were weeks in the making. now we have our answer -- european bank president mario draghi cut rates to unprecedented lows and unveiled measures to beef up lending to banks in a bid to fight the threat of deflation of the eurozone. investors are still dissecting these words. >> we think this is a significant package. are we finished? the answer is no. we are not finished here. be, within our mandate, we are not finished here. list thea hefty to do ecb has laid out in front of itself. commentators calling it a big bang, others less overwhelmed by the actions of the ecb. caroline hyde has been looking at the market reaction. a lot depends on the short-term or long-term view. >> of course, the euphoria was short-lived. the euro is trading back above

the level it was before the ecb announcement. 1.36. we have shot up more than one percent yesterday. as they digested the headlines, it went up about .4%. not yet at the high, the six-year high. the u.s. got more excited, closing at record highs, asia lackluster. the markets not that excited. didly, mario draghi everything in his toolbox to try to get cash into the system, get money into the company's in europe, try to push down the euro, bring up inflation. ring out theid not bazooka of quantitative easing. a lovely line saying that he lobbed a few dovish grenades, but traders were disappointed he did not bring out the quantitative the easing bazooka. it is not like the u.k.,

government, u.k. bonds. >> one bond to cover the whole area. >> spanish bonds come italian bonds, you have regulation to this, the legality. oft he has brought is a cut interest rates come in very well flagged, the negative deposit rate. banks are now charged but their money with the ecb, so they are more likely to lend it. you also have the 400 billion euros liquidity program, trying to get money into the corporate hands. incentivizing banks to lend. mopping up excess cash in the ,ystem, also intensifying buying asset-backed securities, but not yet. >> he says we are not finished. bute leaves the door open, maybe that is leaving the market to force his hand. so far the euro will remain trading higher, and we will have therefore exports. with inflation at .5%, more worrying the ecb itself thinking

inflation will be 1.4% in two years. this is a key concern. >> if he did do qe, record low yields, what would qe do, the work has been done already. >> exactly, today we had a little hesitation from traders. we have data, from the u.s., jobs data. above 200,000. nonfarm payrolls, the amount of jobs in the u.s. economy. we are expecting 215,000 jobs added, not as much as april. a bit worried because we also have the adp private payroll number earlier this week. generally, if we keep above 200,000, it seems you are bringing down unemployment. >> thanks, caroline. >> coming up, bnp under

pressure. the new york banking regulator pressing them to dismiss a top executive. ♪

>> first. bloomberg. >> time for today's company news. we have been speaking with asal's cheeky executive

chief executive. he says banks have become reluctant to fund projects in russia. you would hear from him later this hour. bank of america would provide at least $5 billion to consumers as part of a proposed settlement of a probe into its handling of mortgages and head of the financial crisis according to a persistently with the talks. u.s. prosecutors have been seeking more than $13 billion from the firm to resolve investigations into its sales of mortgage backed securities. prada fell to its lowest in almost two years, trading today analystugh it missed estimates, following a tour is him slump that hit sales. prada forecast low single-digit same-store sales growth this year. welcome back. this is "countdown." i'm mark barton. >> i'm anna edwards. turning to bnp paribas, settlement talks over alleged

sanction violations. new york's top financial regulator is said to be seeking the departure of one of the banks top executives along with other employees. president hollande of france says this whole episode threatens the european banking system. it is a lot of money, $10 billion, but how threatening is this? >> it is not at all threading. it's a lot of noise. person in holland wants to protect natural -- president hollande wants to protect national interests. bnp is very big across europe, very big is mrs.. they are big in italy, and they have a lot of business in the u.s. with bank of the west. branches, 15,000 employees, 12% of the bank revenue comes from the u.s. >> which begs the question, why

are u.s. regulators asking for $10 billion? i think one of the reasons is because they can. bnp has such a big presence in the u.s., that is the lever they can pull. well, you have a big is this coming want to continue to operate coming in today banking license, guess what, that is in our power. >> bloomberg has a new piece called bloomberg view, an opinion piece, and assess if you cannot pay the fine, don't do the crime. on the other side of the coin is , is it a case of americans who are angry post-financial crisis that the prosecutions are not harsh enough and finally they are getting their way with this big fine of bnp, like all that angst is coming out against one firm. is there anything to that? >> i think that is stretching it a little far, mark. haspicture, jpmorgan already paid fine after fine. they have spent well over $10 billion in total set aside.

$617andard chartered, million. >> but they don't have the same presence in the u.s., and i would also argue that emp created and are not cooperating more fully with regulators and earlier. the others did in the fines were reduced because of that. they stuck to their guns and said, no, we not going to cooperate. guess what, the fine goes up, not down. is one year's profit at the bank, so it is a sizable bit of money. what is the worst that could happen? are we talking about the possibility of a french bank being told it is not allowed to trade in dollars anymore? that was mentioned in the report. >> i think that is not likely. for bnp, that would be utter disaster. clearly what they are trying to do is negotiate down the level of the fine. they will obviously have to pay

a substantial amount, in the billions. they're looking for less than $10 billion. a are also looking for no interruption to their ongoing business around the world. been lost in has market value, on top of the $10 billion, so this is costly. all these questions have to be answered. unlikelyl raising is because they have reinforced their capital position advance. acquisition helped raise issues. they have rebalance the way from the u.s., more towards europe centric businesses and retail businesses over time. their capitald position. it could mean the dividend cannot be raced. >> edmund, thank you very much. he stays with us. more conversation with edmund about equity markets in the wake of the ecb decision. we will look at the job market numbers. stay with us. ♪

welcome back to "countdown." i'm anna edwards. >> i'm mark barton. admin shingnagement is with us. is with us.ing argue what mario draghi did yesterday is more important to the economy than people realize, less important for the markets because a lot of

it had been anticipated. i think what is hidden in the announcements is there has been becausef miniature qe they said they would stop sterilizing asset for justice. they sterilized purchases, in other words we bought the bonds, but we are withdrawing similar amounts from the markets, so that executive late -- that effectively puts it at zero. now they're leaving liquidity in the markets. it is a form of limited qe. i think the economic impact is important. i think it reinforces the pace for european equities. >> we were talking with a guest from munich and was suggesting equity markets are vulnerable because of the amount of complacency, lack of volatility, people are just believing too much the central banks have their back in the equity markets only go up. too much of a group think about that? >> i don't think so.

i had this discussion with my boss in moscow, who echoed those thoughts come who said surely everybody in the same way, isn't that dangerous? on, the sentiment is indicated. either from a retail investor or the institutional investor, it's not extreme. people are not that bullish. talking with another friend on the brokerage side, he said most of his clients are looking for a correction. they have not sold yet come up they are waiting for the market to correct downward. think, is the group think what is more likely is the markets will be less comfortable and continue to go up because people expect that less than a down correction. the internet retailer issuing a profit warning, this is a stock that we could use the word fall. in two years it has gone up by

seven times. what are the perils of investing in stocks like aesop? >> when you invest in these glamour stocks with a great story, it was a great story and that is what got investors aboard. institutional and retail. the problem is always, that's always very well, what you always risk -- but you always risk a double whammy. when there is a disappointment like they had yesterday with profit warning, sales, profit itself falling, which in is big, not only did the earnings get revised down, the market also falls. in this case, it went from 70-something to 60-something. >> it is growing at a strong rate, just not as much as investors had expected, and priced into the stock. >> that's the problem. we don't doubt it is still a

good growth story. the problem is will be rating recover. , the at 50-something time market is at 14. it can still fall in awful long way before it's anywhere near the market rating. >> sometimes stock have more peel, then the likes of asos. >> you want to look at stocks with boring criteria -- they are cheap. the opposite of asos, low price to book. the second is quality. that means they are profitable, preferably with growing possibilities. third, you want a good price over the last 12 months. where the share prices have gone up in the earnings forecast is going up. fourth, companies that are not very volatile. bizarrely enough, the market systematically under price is less volatile stocks, so over time you are doing better risk-adjusted. >> edmund, thank you very much.

comments up, exclusive . >> we will have more from him after the break. ♪

>> welcome back. time to have the fx check, the ecb interest rate decision and the alarm person at a moves coming from the eurozone central bank. the today chart illustrates market coming from the ecb and the move, lower in the euro initially around the announcement, then the recovery in yesterday session. 3655 is currently word is trading. if you look at what economists are forecasting for the

euro-dollar going into this year and next, it is forecast to come down. 1.36 to the end of the second quarter, 1.32 by the end of 2014, 1.29 by the end of the second quarter of 2015. that is what economists are expecting, and what everyone will be looking at the nonfarm payroll number, the jobs number from the united states later. these are the bloomberg top headlines -- new york top ranking regulator is pressing bnp paribas to dismiss one of .ts chief operating officers authorities are also seeking the departure of another senior executive and 12 other employees. that is part of settlement negotiations with the u.s. over alleged sanction violations. the bank is also facing a potential $10 billion fine. we've been speaking with poland's finance minister who told us his country is feeling the effects of the crisis in

ukraine. >> exports to russia and ukraine have been affected in the first quarter. the declines have been almost two digits in the case of russia, single-digit declines in ukraine. polish firms are able to cope with this to a large extent thanks to the better business climate in the west, but also the substantial exports. >> the 70th anniversary of the d-day landing, barack obama and vladimir putin and others are in normandy, france, to commemorate. so far they have no plans to meet. obama says they are bound to cross paths. >> i have no doubt that i will see mr. putin. he and i have always had a businesslike relationship. it's entirely appropriate he is

there to commemorate d-day, given the extraordinary sacrifices that were made by the people of the soviet union during world war ii. welcome back to "countdown." i'm mark barton. >> i'm anna edwards. on the sidelines of the d-day event, business leaders have been meeting in normandy. it is where we find ryan chilcote. ryan? at the, we are waiting d-day event for the french president who will be leaving the ceremony in normandy in half an hour. on the sidelines of the celebration, french business has freedomhering at the and solidarity business conference sponsored by the american chamber of commerce. that is where we caught up with a company that we saw in russia searching for oil in western siberia. he talked about how the threat of sanctions is affecting his business in russia. thing, which is

having an impact on the business of everybody in russia, not only total but including the americans is the financing of projects. there's a lot of financial institutions that have already been taking a cautious positioning, which means even if it's not for bid and -- even if it is not for bibidden, it is wait-and-see. >> there was a lot of concern about the business ties between the united states and europe because of things like bnp paribas, where they say politics is getting in the way. not just that. also of course the threat of this russian division is causing between the united states and europe. that is another thing he spoke

about. >> justin taking so many hours at a time to deal with those relationships, destroying them just because there were something which i hope will be a short-term, very strong misunderstanding, that we should stop all of our relations. let's try as much and as long as we can to leave the business on the side of political affairs. paribas wasf bnp supposed to go to the freedom and solidarity for them. at the last minute he pulled out. we are at a d-day affect that will begin in just about 20 minutes. the gathering of helicopters landing, president hollande is not far away. we will have coverage right through the morning of the d-day event and the politics around trying to find a way out of the

crisis in ukraine. back to you. >> ryan chilcote, live for us in normandy. >> a french economist has reignited the debate on wealth inequality. his best-selling book "capital and the 21st century" has sparked controversy has some criticize his findings and research methods. by thomas b candy, live from paris. thank you for joining us. straightforward question, how does it feel to have written possibly the most talked about economic book for generation or two, possibly in the world? are you surprised by the reception your book has received? >> i think you are pushing it a little bit. of course i'm very glad. i try to write the book.

this is a book about the story wealth,, of income and which is an important issue not only for the economy but everyone. everyone has a strong opinion. what the book is doing to put historical data over 20 countries through the centuries, this book i think is being successful because people want to know more about this issue and this kind of historical evidence has ever been put together before. let me say very clearly at the end of the book i try to throw some conclusions about the future, but i am much less good about analyzing the future than the past. people can disagree with conclusion central the road conclusions. in partinding interest one, part two, part three of the book. most of the book is an historical narrative about income and wealth. also, the political conflicts of income and wealth.

it's not just economic history, its social history. it's a representation of equality. thomas, how serious are you with your suggestion we need to have a global wealth tax as opposed to a focus on income tax? some economists doubt if you're serious about it. are you very serious about it and how could it be realistically implement it? >> that does not need to be global. globalhave in mind is operation between national governments. againsthink of the g-20 tax havens, trying to promote automatic transmission between countries so the different countries can actually know taxpayers owe other countries.

as is the cooperation i have in mind. it's difficult, but at the same time five years ago many people secrecy inng bank switzerland would be with us forever, too strong for the rest of the world. at the end of the day, there were sanctions by the united states government one swiss banks and we have seen recently with other countries that bank with the u.s., with sanctions, this is made a big difference with ink secrecy. suddenly, the laws were changed. now we are beginning to have more transparency. i'm not saying this is the end of the final policy. it will take a long time. but at least with this shows is it's possible to make progress in this direction. there is also a lot that can be done. in every country, we do have different systems of taxation of wealth.

typically, property tax in the united states and europe. tax on could be made that wall for a given tax revenue so that people which will be much more engaged and pay less tax, let me be very clear it's not to increase the total taxation of wealth or capital but rather to make more property so more people can enter wealth creation. the problem we have is the share of natural -- national wealth to the middle class is shrinking. as is not good. we want complete equality of wealth, but i think the middle-class class is not bad for growth. you don't want extreme separation of wealth. >> the backlash the book has made as much attention as the book itself. there are suspect

statistics. you have given their response to that. a very long response to that. did you think that they have damaged your work? >> no, not at all, i think they have made a fool of themselves. anybody looking at the issue will see it's really nothing at all. they have made a lot of noise out of nothing. there was no mistake in this. everything has been transparent. the reason is so that we can have an open transparency. sillyk it would be a bit to try to deny the rise of equality in the united states or the united kingdom. i think anybody looking at a ranking of fortunes would see the top of the list is rising

faster than middle-class wealth. i think it's a bit sad. >> thomas -- >> that's fine, but -- >> we will allow them to answer. finally, thomas, how does it feel to be something of a celebrity economist? has your life changed greatly since the book went to the top sellers list over in the u.s., on amazon? businessweek magazine has you replacing dr. doom as the pinup among economists, something of a life-changing event for you? >> well, not really. i'm still just another economist trying to do my work as a scientist. of course i'm very pleased the book is doing well, but the purpose was to write a readable book, so i am pleased it seems to be read. the problem with all the

publicity is some people write about the book who have not opened it, but that's fine with me. the objective was to promote debate. as long as a number of people read it, i like the publicity. >> thomas, thank you for joining us. thomas pikkety joining us from paris. just minutes until the european equity session opens today. ♪

>> first. bloomberg. >> time for today's company news. is chief executive t-mobile said to be the likeliest to run the company if a merger is reached with sprint, favored over the ceo of sprint. deutsche bank is warning investors of a deepening trading slump and international probe may lead to a bigger revenue decline in these quarter. the first 10% in three months. they are seeking to raise $11.6 billion in a stock sale. and his rivals are pursuing acquisitions. he says he is satisfied with his stable of drugs.

drugmakers including novartis and glaxosmithkline participated in billions of deals this quarter. that number does not include astrocytic' action -- astrazeneca's rejection of pfizer's offer. >> today's top corporate themes with caroline hyde. >> a little bit of retail fuel. the meetings yesterday were not too pretty for the chief executive of phillips. reelectiongainst his as chief executive, 26% have voted against the pay policy. this is a supermarket losing market share. they are losing out to the discounters, and in the top rates going up from the choice of meats and the like to more luxury suppliers.

calls for the stock to potentially drop, but generally unchanged. >> he did receive a bonus, though. all the other big supermarket chiefs, except justin king is leaving. bonuses,missed out on sale suffering, profit suffering. >> more positive about another retailer, the turnaround for gain digital. 2012, taken into administration, going bust basically because nobody was going online to buy video games. along comes elliott advisors, the hedge fund, buying video games on line and the like. the company is now listing just limited share trading today, conditional share trading on the

london stock exchange, and is now worth 340 million pounds. not sellngly, they do at the top of their range. two pounds per share was the price. ipo share price. it still came out. >> thanks, caroline. draghi didp, mario not just bring up a bazooka to the meeting, he was dressed like rambo. some were impressed, others were not. withll check on that story him and just a couple minutes time. ♪

>> welcome back to "countdown." i'm mark barton. >> i'm anna edwards. we are currently looking at live pictures from the d-day commemoration taking place in northern france, not far from the beaches of normandy where 70 years ago we saw troops from allied forces land. president obama, president hollande, president put in and others gathering to commemorate those events in northern france in normandy. >> obama will make remarks at the enormity american cemetery normandye e

american cemetery. james hughes is here to take a look at what might happen at the open today. you compared him to rambo yesterday, james. >> it was pretty much gung ho for a mario draghi yesterday, everything but the one bullet, the one golden bullet. i think we were all waiting for that. it was the qe bullet. i think he was even throwing those big names out and those big hearts out, but still he says he is going with more things. i think that has to be the way we look at that is the fact i don't think he necessarily thinks these things are going to tok, but it cannot be seen do qe until he has tried everything else. ridding else's throat out. when it does not work, it is time for the qe to begin. he has been delivering these bullets, but most economists, the consensus

is for the euro to lower by year-end. as much as he would like, do you think? >> no, not as much as he would like. ,very time mario draghi talks he always tries to weaken the euro, and he does quite well usually. overall, i think the euro will continue to weaken. look at what is been put in place. we have cut rates across the board, all of these things added in. whether it will have a ffect is another question. i think it will make new would euro weaker, but at applicable solve the issues and the eurozone. >> stocks almost at a six-year high, james, touching a six-year high, did not close at the six-year high. the outlook of the stock market in light of druggy -- in light of mario draghi? >> i think the euro is negative on the back of those, so i think we will see more strength in the

equity markets. i think eventually we will go above these levels. i think eventually we will close above them. i think today, we had the ecb yesterday, nonfarm payroll today. >> what are you expecting from the u.s.? >> 218,000 is the estimate, which is a roundabout way of everyone else's, but i think the partition the patient that i think the participation rate is the big thing, and the overall unemployment rate. percent,alls below six we have to be looking at some kind of action in terms of monetary policy. i don't think it will drop below, i think we will go slightly higher, but everything is down to the participation rate. >> james, have a good weekend. james hughes, senior market analyst. >> that will do it for "countdown." "on the move" is next. exclusive, a ceo

gives a postmortem of the megadeal that never was, speaking to carolyn. that will do it for "countdown." we leave you with live pictures from normandy, the d-day commemorative events taking place. ♪

>> good morning. you are watching "on the move." i am guy johnson. we are right here in london and we are moments away from the start of european trading. banks are back in focus. bnp caught him between u.s. and french politics. potential fines waiting on deutsche and bank of america. here with me now, caroline hyde, ryan chilcote and hans nichols. >> mario draghi unveiled a huge array of policies yesterday to try and get cash into companies across europe and spur lending. has been pretty limited. i will be back with more in a moment.

digging down to that dinner between francois hollande and president barack obama. it was a dinner, no dessert. he had dessert with mr. putin. everyone will be gathering on the beaches of normandy where ryan chilcote is. >> thanks. d-day celebrations just about to commence and normandy. we are waiting for the french president to kickoff the ceremony. the president of france, just one of a number of world leaders here in normandy today using the 70th anniversary of d-day to find a way to end the war in ukraine. guy. >> ryan, thank you very much indeed. that is what we are watching around europe. busy day. we have european markets just about to open. we are in between draghi and payroll. trying to figure out the