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. spreadto figure out the

between policy in europe and the united states. let's talk to caroline hyde. faresterday, the u.s. got more excited about what draghi unveiled then here in europe. the united states closing at record highs. let's look at the euro. euro, now trading higher than before the announcement coming from the ecb. he tried to pull everything from his toolbox, mario draghi, getting cash into the banks, getting a cut in interest rates. now negative deposit rate charging banks to store money with the central bank. you have more easy access to credit if you are a company. by giving that 400 billion euros in liquidity. not moppingthey are up the extra cash from the system anymore. they are intensifying work on an asset-backed security purchases. nothing yet. no quantitative easing means the

ato continues to trade 1.3660. he is trying to get the euro lower to boost exports. not working. we saw the stoxx 600 up more than 1% at one point yesterday and it just closed up 0.4% higher. up.y, ftse 100 germany trading up 0.2%. we are now caught between the awkward moment of mario draghi and the u.s. nonfarm payrolls. what will they unveil? will they disappoint like adp did earlier this week? private payrolls coming in under expectations. jobse looking for 215,000 to be added in america for the month of may. will it help the unemployment rate? let's have a little dig into italy and see if the luxury stocks are moving. maybe just looking across asia

ada. pr prada did come out with numbers slowing. the euro was too high. it was stopping chinese spending when they were coming to visit cities like rome and london, not spending quite so much on luxury goods. the british pound is too high and the euro is too high. prada currently seeing low trading in hong kong. >> thank you very much indeed. running through the details of what we got from mario draghi yesterday, we are through the market open. investors still digesting what draghi delivered. what theseigure out words ultimately actually mean. >> we think it is a significant package. are we finished? the answer is no. we aren't finished here.

mandate,e, within our we are finished here. >> are we finished? the answer is no and the implications of that are quite disturbing in some ways. the implication being that there is still more work to be done because the european economy is not out of the woods. let's talk about all of this with the chief investment officer at ccla investment management. good morning, james. what we got yesterday, pretty good for european stocks. what more do we need to see to keep the rally firmly on track? >> we need continued commitment by the european central bank. we also need a reform agenda. i am particularly thinking about italy and france. at what point will the bund is bank say, we need more help? i think it is critical for

france and italy to reform. the third issue of course is we need the banks to be lending. >> ok, let's segment that. growth. the reason he is doing that is because growth in europe is shocking. rallied equities have on the pricing out of the breakup risks. we now have low growth, low inflation and draghi is trying to do all he can without stepping into qe. at a certain point, you have to say, this can't be good for european companies. we closed some of the spread that exist for companies that don't have great global footprints. what else is there to do? >> when you say european stocks rally, if you look at the trade-off between what is expected from european equities, three years of growth between

10% and 15%. that makes the current valuations look remarkably undemanding. is, now what is ahead? point will the fed begin to take support away? >> every mutual fund under the on aas got the trade different path between the fed and the ecb. that trait is on. >> it is on. particularly on the credit market. it is much less evident in the equity markets. throughaid, let's think what in europe is interesting, it does seem to me italy is a market where people haven't grasped the importance of the reform agenda. scope for growth, for

recovery, for valuation. sector, we are all worried. >> let's talk about the banks. i want to spend more time talking about that. when you look at what is going to happen here, you are convinced three years, double-digit returns, no problem at all. >> double-digit earnings. >> sorry. you are not concerned about any risk to the fact that we end up in a situation where these companies are going to struggle to deliver that? >> of coarse there is risk. have very high constants in companies. campabsolutely in the that says europe is going to have lower from here. interested inam companies like deutsche telekom.

they will benefit because of the leverage situation. also, sap. >> james, stay with us. james bevan joining us. we will take a break. back in a couple of minutes. ♪

>> welcome back. we are back with james bevan. james, let's talk about the banks. investing in the banks to my mind looks like a random walk in the park.

you just don't know who is back for a big sign. that big fine could have significant implications for the capital requirements. you're not going to get earnings, you're not going to get dividends. someu end up seeing capital raising exercises. >> absolutely. .ook at the business model i wouldn't be touching any business -- any investment banks at all right now. look at the probable trajectory for earnings growth. credit agricole is my pick in euro land. 3.5% dividend. that is a valuation that accommodates a lot of the risks. will have to raise capital because there is a lot of talk about banks having to raise money. >> they have to raise some money to get through the aqr. i think the valuation is

accommodating all of that news and worse. with that? deal the politics of getting involved in banks. we have a situation where fines are so enormous. at one point, the fine could have been 16 billion. >> i entirely agree. that fiscale is risks are higher everywhere at the moment. i do think there is now broad recognition the banks are a crucial part of the recovery cocktail. i don't believe credit agricole -- >> but they need capital. lovely to see you thank you very much indeed. james bevan joining us. this agreement, no dessert. president barack obama and francois hollande clashed at dinner. bnp paribas.

also, over large warships and the sale of them to russia. hans nichols is back from brussels. he is in berlin. talk to us about the details of dinner. >> mr. hollande had the sea bass. we don't know what president obama had. we do know that obama didn't stay for dinner -- for dessert because hollande had dessert with vladimir putin. here is the conflict. obama warned the french president, asked him not to reward russia with these carrier helicopter transport ships. obama bnp paribas, repeated the argument he had been making in the past. hollande claimed that the size of the fine is unfair. here is how obama prepped it when he spoke in brussels before the dinner meeting. case answer on the banking

is short and simple. the tradition of the united states is that the president prosecutions.e in we don't call the attorney general. i do not tell the attorney general how to prosecute cases that have been brought. i do not push for settlements of cases that have been brought. this dispute shows no signs of going away. yesterday, the french finance minister talked about u.s.-eully putting the free-trade deal on ice because these fines were too large. we are talking about potentially $10 billion. >> and we are not done there. apparently he wants some scalps as well. >> this is the state of new york banking regulator, he wants to see 12 executives including the chief operating officer lose

their jobs. you think that obama has any control over this, it is not understanding how the u.s. legal and banking regulatory system works. >> separation of power. the founding fathers are happy with this. thank you very much indeed. 70th anniversary of the d-day landings this morning. soldiers hitting beaches across normandy. world leaders gather to commemorate. ryan chilcote joins us from the site. d-day celebrations have just begun here in cannes. they are happening all around normandy. the french president is expected to join the service any moment now. he is just one of a number of world leaders who will be here. the british prime minister, the president of the united states, the chancellor of germany, the president of russia, the

president-elect of ukraine. they are joining veterans to talk turkey when it comes to ukraine. those discussions began in brussels with the g7 minus russia, but continued into the evening with russia. the russian president meeting with the british prime minister and president hollande as they try to find some way to engage russia for de-escalation in ukraine. >> live pictures of francois hollande normandy. historical conflict and a current conflict very much in progress. any progress that we are seeing? >> progress would be if there was no fighting. the fighting continues in the east of ukraine. yesterday when president hollande met with president obama, while they have their squabble about the french sale

of warships to russia and bnp paribas, they also talked about how concretely they could find a way to end the crisis here. both leaders are working actively behind the scenes to try to get president putin and the president-elect of ukraine to sit down today in normandy. they say they don't want to talk about this publicly. clearly, if there is going to be an end to the war in ukraine, those two gentlemen, it is essential they sit down and hash out their differences. >> ryan, thank you very much indeed. ryan chilcote joining us from the normandy beaches. we will continue to bring you pictures from there. what else have we got? we are going to talk to one of europe's most successful startup investors about catching in. stay with us. we are "on the move." ♪

>> welcome back to "on the move ." i am caroline hyde. it is one of the most successful startup investors in europe catching and on the latest tech listings. it helped fund the growth in dropbox, sound cloud to name a few. here with more on the tech reimer, partner

and cofounder of index ventures. thank you very much indeed for joining us today. -- we wereense talking earlier. what sets apart some of the companies you look for? what are the key qualities you look for in entrepreneurs and companies you look to fund? >> our thesis is that there is nothing unique about silicon valley that means all great entrepreneurs have to be based there. we believe they can be based anywhere in the world. that is the thesis for setting up index ventures in europe. we are looking for very talented missionary entrepreneurs with a big vision who want to make a dent in the universe as steve jobs used to say. we want to do that by bringing a great service to consumers or to businesses with a combination of

business model innovation and technology. oneet's drill down into particular, the likes of house trip, a competitor to the likes of air b&b. what makes something like the european version win out? is it the technology you look to? how does it differ from air b&b in particular? believe this is really the early days of that type of travel. the truth is, if you interview people in the street, most of them still don't know about air b&b or house trip, or the whole idea of traveling this way. renting somebody's home or apartment when you take your family on a vacation versus a hotel. the thing that really attracts us to house trip is the fact that the entrepreneurs came out of the hotel school.

they had a hospitality background. they looked at this problem in the same way conrad hilton would look at hotels. they are trying to build the hilton brand for the 21st century by offering a consistent, high-quality service for families that are looking for a better alternative than going to hotels which are more and more resembling each other. >> you are not talking so much technology. what do you look at that makes a company stand out as a tech perhaps ather than restaurant company at its heart and house trip which is a hospitality company at its heart? technology not as the end in and of itself, but a means to an end. technology and business model innovation combined create a

very innovative business that can grow very fast and take a disproportionate share of the market away from incumbents who are using old methods. we do invest in technology as well. we do invest in enabling technology for the enterprise, the cloud, big data, but when it comes to consumers, e-commerce, marketplaces, most of these things are one part business model innovation and one part technology, most of which is assembling parts that are available from other vendors. >> your job is raising funds to put into the startups. what is investor sentiment out likthere? we have had concerns about trading. there are some worries about bubble territory in the tech scene.

mind that having been our investorss, who have invested in those companies are doing very well. we do believe those companies are great companies who will continue to perform. markets can be jittery at times. that is par for the course. we think these companies will continue to grow and be very successful for public market investors as well. we have been investing in early-stage technology companies with venture capital funds since 1996. we have grown a base of investors who believe in our strategy, like what we do and have been making money through our investments. to, they are very keen continue investing with us. >> last question, what company are you most excited about?

what industry, what part of the tech scene? speak, toard to single out any one of your children. they are all beautiful. i think one of the areas i have been spending quite a bit of time in has been financial services. and how entrepreneurs with a great vision can actually kickoff sectors of the financial services industry. there is a company based in london called funding circle which has created a marketplace for business loans, which we are very excited about. >> certainly when you have got the likes of mario draghi desperate to get money to the corporations, anyway possible. we will see if funding circle can help. it has been wonderful speaking to you. guy, back to you. >> we have funding circle on the program last week. looks like we are in the right place.

thank you very much indeed. coming up, our exclusive conversation with googly says -- with publicis' ceo. he will give us details on why the deal fell apart. ♪

>> welcome back. you are watching "on the move." let's talk about what is going on. we are 30 minutes into the trading day. draghi, are digesting we are waiting for the payrolls number. probably likely to be just north of 200,000. asia did well. india in particular, a really strong performer. let's dig deeper into the details. caroline hyde is back at the touch screen with some of the stocks we need to watch. >> sadly a bit of a red view at the moment. all three stocks i picked are currently trading the work. look at luxury today in europe.

we are feeding off the news from prada over in asia. lvmh down almost 2%. hugo boss trading lower as well. -- postinglimbing declining sales in europe. the chinese are not buying luxury goods so much when they are traveling around europe. they are not spending because the euro is too strong. this is a key concern for mario draghi and the luxury companies. game digital, what a turnaround story. it comes to the london stock exchange in 2012. this is ahed forward, video games retailer, it sells shares just at the bottom end of the range but now worth 340 million pounds. , not looking so good for the supermarket chain. executive can get no let up.

15% say we don't want him reelected as chief executive. 26% voting against the pay packages. one of the key supermarkets here in the united kingdom off by almost 0.9%. >> thank you very much indeed. it is the 70th anniversary of the d-day landings. world leaders including barack obama and vladimir putin visiting normandy to commemorate the event. obama criticized the french president francois hollande for rewarding putin's behavior i selling warships to russia. condemned hollande the u.s. for being too harsh on french bank bnp paribas. tophat note, new york's banking regulator is said to be pressing bnp to dismiss its chief operating officer. authorities are said to be seeking the departure of another executive and around 12

employees could also be on the list. that and a potential $10 billion fine are part of the settlement negotiations with the u.s. over alleged sanctions violations. economists surveyed by bloomberg estimate 250,000 jobs were added to the american workforce in the month of may. again of at least 140,000 would being payrolls above the prerecession peak. right, let's get back to another bloomberg exclusive. publicis'chief executive maurice levy says he will have to make a few acquisitions after the collapse of the planned megamerger with omnicom. he explained why the deal fell apart. >> the issue between the omnicom dople has very little to

with the americans and the europeans. it is differences between two companies and also may be some hidden agenda. the publicis-of mnicom merger has not happened as absolutely nothing between governments, between between twoas to do companies who had different cultures, corporate cultures, not national cultures. we have plenty of operations. our largest operations are in the u.s. our most important people in our organization are americans. we respect them, we value them, we love them and there is absolutely zero problem of

culture between these people. the only issue we had was the issue of equality. the word equality has not exactly the same meaning at omnicom level and publicis level. it is not only management positions, it is much more important than one or two people. for a merger of this magnitude, one or two people -- every people is very important. futures at stake is the , not one oreople two people. what was at stake is how to make sure the new model would deliver what we promised to the market.

>> that was of course maurice levy, ceo of publicis. makes you wonder who is going to replace him. some say the deal was designed to allow him a smooth exit. let's continue the conversation on that deal that wasn't meant to be. michael is the chief executive of london advertising. good morning to you. everybody else in the industry thought this was a deal that was a deal too far and felt the cultural differences wouldn't work. you were included within that. now we are starting to deal with the fallout. if you are a client of publicis, how do you feel about this? of staff of member publicis, how do you feel about this? >> relief both for clients and staff. there was a lot of uncertainty. levy put his finger on the button.

timenk his optimism at the that the merger was announced was perhaps wishful thinking. companies -- ie thought, this isn't going to work. too many differences. was it was apparent going to be a takeover. that is why they pulled apart. >> is there a destruction of trust? if i am a client, how do i feel about the company? this is an emotional business. how do i feel about working with publicis or omnicom? >> i think people have seen a lot of fallout from clients who walked out of those businesses. attain the trust of clients in that environment. there are some very good people working with those clients to

try to maintain their relationships. clients of the existing and relationships with people on the shop floor, those people are thatng very hard to ensure the fallout doesn't impact their day-to-day business. >> very briefly, does this prove that takeovers are better than mergers in this business? marketink mr. sorrell's model will prove that. he has done an amazing job. very proud of a fellow brit in the advertising business. even acquisition isn't always easy. i think the difference between publicis and omnicom is best summed up by the song, let's call the whole thing off. .ou say tomato, i say tomahto >> on that note, let's talk

about advertising songs and jingles that go with the world cup. michael is going to stay with us. picture of the massive scale of the games. >> the world cup is the most viewed sporting event in the world. the 2010 world cup was shown in every country and territory on earth including antarctica. 3.2 billion people watched. that is 46.4% of the world's population. 1930,the first cup in more than 34 million fans have attended matches, making for an average attendance of 44,000 fans per game. 32 teams will compete in 64 matches. the national teams will get at least $8 million to compete. the winning team will take him $35 million. germany has promised all players a $470,000 bonus for capturing

the title. the famous brazilian player run although holds the record for most records -- for most goals scored. rio is thetadium in site of this summer's final game. it is the largest stadium in brazil. the host country has a good chance to win the cup. it wouldn't be the first time. brazil had made more appearances in the world cup than any other country. other winners include italy with four wins and germany with three. this is what this is about. >> traditionally, that has been the case. think the advertising market this year has done an amazing job. the beats commercial is my prediction as the winner of the world cup. it is completely different to people just playing to keep you happy.

it has a real energy about it. >> the world cup is becoming tarnished. does that make it less attractive to advertisers? we have got problems in brazil, ,he scandals surrounding doha does that take the edge off a little bit? >> i think there is a corporate side but then there is a viewer side. the public imagination is still captured by the world cup. spent,unt of money being no one would question being an official sponsor versus just doing a fantastic commercial. they are not a sponsor of the world cup, yet what they have done captured the anticipation of the fans. one of the developments this year is the importance of the internet versus tv. we have seen nike coming out with a four-minute tv commercial. nike and adidas have two

commercials that are the same idea but they haven't really involved from 1998. they had some amazing stuff with the brazil team at the airport terminal. it doesn't feel like it has moved on particularly. you have this new player, beats which has been bought by apple for $3 billion, i think, sweeping the board. >> thank you very much indeed. michael joining us from the london advertising company. let's change gears. the 70th anniversary of d-day, world leaders meeting in ormandy. ryan chilcote is there. >> those d-day celebrations have just commenced here in cannes. they are happening around normandy. the french president has just spoken here. a bit of a lull as we wait for more music.

hollande is not the only leader here. the president of the united states is here, the russian president, the british prime minister, the german chancellor. they have been meeting in various configurations. they finished up their talks without russia last night in paris. withussian president met the british prime minister, also the french president. the whole idea today is to continue those talks. we know angela merkel is going to meet with president putin. president putin is going to be in the same room with president obama at lunchtime. they may speak. president obama and president hollande spent a lot of time yesterday talking about getting the russian and ukrainian presidents to sit down. key for them to sit down if there is going to be an end to the war in ukraine. the french are almost acting as intermediaries on behalf of the russians and the u.s. is acting as an intermediary on behalf of

ukraine, working to get that meeting to happen later today here in normandy between the russian and ukrainian presidents. the french and americans with the bnp paribas story, and also france's sale of warships to russia, they have had their squabbles, but they are both united on this one desire to make sure that meeting happens. we are going to be watching that here in normandy today. >> politics never ends. thank you very much indeed, ryan chilcote. we are going to take a break. ♪

>> welcome back. here in london, in 13 minutes time we are going to be launching "the pulse." today olivia sterns will be joining me on that show. she is here to tell us what we can expect. >> for starters, we are going big on banks. there is talk u.s. authorities are pushing for a $10 billion fine from bnp paribas. there is also talk that new york's top banking regulator wants to see some executives go. we will be breaking down that. deutsche bank is trading. we will see what their latest plan to increase capital means for the bottom line.

we will be speaking to the ceo of a british satellite company. they have a new plan to bring wi-fi on board flights across europe. we would be talking to him about what kind of business opportunity that means. we will be breaking down what reggae's ltro means for the market. finally, it is u.s. jobs data. i can't believe i am not in new york for it. economists are looking for a gain of more than 200,000. if we get only 100,000 jobs added, this will be a historic day. we will be almost net neutral. be sure to stay tuned for all of that coming up on "the pulse." >> looking forward to it. draghi says -- he said that yesterday. looking forward to it. thank you very much indeed. let's bring you up to some of

the company news. olivia has been mentioning it, you know -- new york's top banking regulator is pressing bnp paribas on the alleged sanction violations. seeking lost he is also a departure of another senior executive and 12 other employees. $10 billion or possibly more. this is for dealings with sue dan and iran. deutsche bank is also warning investors of a trade slump. international probes may lead to a bigger revenue decline. sales fell 10% in the q1 period. the bank is seeking to raise $11.6 billion in a stock selloff. america will provide at

least $5 billion to consumers as part of a proposed settlement over its management of mortgages. u.s. prosecutors have been seeking more than $30 billion from the firm to resolve investigations into its sales of mortgage backed securities. just when you thought they had gone away. coming up, inside crimea. we are going to give you a special access tour of the region and check out a nuclear bunker that just fell into russian hands. ♪

>> good morning. you are watching "on the move." i am guy johnson here in london. back to the 1950's. russia had started building a submarine base deep in the caves of crimea. all feels rather historical, doesn't it? this as under ukraine's role it was turned into a cold war museum. now that crimea is back under russia's control, ryan chilcote took a look at the possibility of the base being reborn. >> built into the caves of -- crimea'slah, balaklava bay life a bunker. it was designed to take a direct atomic strike. after a. of -- after a period of decay,

the russians gave it to the ukrainians who turned it into the cold war museum. russia is now in control of crimea for the time being. the base is still a museum. i dropped in for an unexpected incognito visit. >> obviously, very secret base. the motto is, don't say everything you know and always know what you say. >> the place was so secretive, workers' relatives were barely able to visit. paperwork and thick walls got in the way. >> the whole base could be sealed with these doors. people could stay inside in case of a nuclear attack for three years. russia has always had a naval base in crimea called the black sea fleet. now, crimea is under russian control. it is getting bigger. with all the talk that the u.s. and russia are entering a new cold war, visiting the cold war

museum was more than a little daunting. after the annexation, the whole base was transferred to russia's black sea fleet. the question is, will it remain a museum or something else? ryan chilcote, bloomberg, crimea. >> ryan chilcote going deep underground. a recap ofnow with major moves, caroline hyde. >> not many major moves to be frank. the euphoria has come out of the market. we did go up yesterday on the stoxx 600, but that has gone down. easing -- i love this quote from london capital group. he launched a few dovish grenades but they didn't pull out the quantitative easing bazooka. telling us what he could do -- he did a lot. he did all of it and all of it had basically been priced in. >> in terms of the stocks we are

watching today, the banks are front and center. >> it is interesting what is moving. the best performer today, it could really benefit from its look to aid the small to medium-sized companies. risk isedit, their becoming lower. money,like the fact that liquidity could go there direction. the biggestide, fall or is selling shares. we are looking towards the capital. >> that figure casting a shadow over this as well. the regulatory story is front and center. politics getting involved in that too. caroline, thank you very much indeed. caroline hyde bringing what you need to know about the markets. stay with bloomberg television. we are taking a short break but

after that, we will continue the conversation. i am going to back with olivia sterns. "the pulse" is up next. see you shortly. ♪ . .

>> bnp feels the heat. top executives have to go as the bank faces scrutiny over sanction violations. >> putin under pressure. obama uses the g-7 to warn that he must engage over ukraine. >> and a bloomberg exclusive. you will hear from a ceo in his first entered -- the ceo of in his first interview since the failed merger with omnicom. good morning, everybody. yo