>> u.k. prime minister david cameron meets with german chancellor merkel and other leaders in sweden to talk about who should be the next european commission president. >> a call for peace. ukraine's newly inaugurated either says violence must end -- leader says violence must end. and investigating fresh allegations over qatar's world cup did. >> asian stocks get a lift from china's strong export numbers and china's better than expected growth. ♪

>> hello, welcome. i am mark barton. >> a warm welcome. bloomberg reporters are standing by ready to deliver stories for your day. the pressure on fefa to investigate the world cup bid. >> hans nichols is in berlin to juncker have a chance of leading the commission. >> to the mat sat down -- diplomats sat down in a -- in an have a cease-fire. >> the president says he wants an end to the violence by the end of the week. the question is is that actually possible. it's a question i put to the

russian president over the weekend. have a listen to part of our exchange. not a candidate to any other position. i think it is a relatively important job at the moment. we need to keep helping countries out of the crisis. now that you have had this meeting. you have met president obama. how likely is a cease-fire in ukraine? what will you do to achieve a cease-fire, and how quickly do you think a cease-fire can be achieved? needs to be done immediately. they need to immediately stop pin it to operations in the southeast. so far no one has said anything to them. no one has proposed anything at people don't know

how they are going to live, under what conditions, what the parameters will be. there is no conversation about that. there have been arguments and roundtables, but no one invited any representative from the southeast. the situation needs to be radically changed. the presidential elections in ukraine are over. we need to start working with people. odds that athe cease-fire can be achieved in ukraine? >> i think the ukrainian leadership must show its

goodwill and wisdom. to immediately stop the military operation, immediately announce a .ease-fire there is no other way to create conditions for negotiation. x whate it is all about ukraine's central government has to do to create the conditions for a cease-fire. he doesn't mention what he is willing to do, which i specifically asked him to create the conditions or with the separatists should do. this is not an answer key of or the west will like. >> president obama was specifically saying he wanted putin to exercise influence in the east. >> right, and the russian line is we have no influence. they maintain the veneer the separatists are operating on their own, but what he clearly

doesn't do is call on the separatists to put down their arms. be tough going to negotiations. i think the new president of ukraine has a pretty ambitious byget to have a cease-fire this weekend. >> there was a man with an icy stare. no doubt you shouldn't have asked that. >> that was the president spokesperson, and he was clearly not praised it -- please. i was told he had his arm on me. when i get into the zone. >> thank you very much. juncker's bid in sweden. the discuss who will lead commission. our international correspondent joins us. party won the european elections last month.

to be one of the nominees, or is he going to walk away? rex the longer his name is out there, the less likely jean-claude juncker is going to be president of the commission. it gives his opponents time to find a compromise. time is not on his side. neither is gender. you are hearing from the british it is time for gender equality. what name tossed around a lot is christine lagarde. she definitively took herself i have ae running. >> job. to anyt a candidate other position. i think it is a relatively important job at the moment. we are not out of the crisis. we need to continue helping countries out of the crisis. the imf is a strong institution

that needs to continue going forward. participate in that. >> one problem, the opposition is clear. sweden, holland, also italy is not overly excited about the haveect. he doesn't someone championing his cause. that should be angela merkel. his party won the most seats in the parliamentary election. what is angela merkel actually thinking. it seems she actually supports him. she is willing to sacrifice for the larger goal of keeping david cameron happy. >> what else is on the agenda?

>> there will be some talk on benefits, about how you streamline the process and make it harder for citizens from different countries to get benefits in the country where they are residing. is another part of the reforms that are so essential for him to make the case at his referendum that i am sure you guys are talking about a lot up there in 2017. he needs to have certain deliverables so he can make the case the u.k. is better off inside rather than out. three of the biggest corporate backers have expressed concern over the new allegations against the way football's governing body awarded qatar the world cup. our editor has just gotten back, and he joins us. sony, adidas, they are adding pressure, the sponsors adding a to hold anfef

investigation. >> they haven't gotten the choice but to carry out a full investigation and to disclose the findings. let's not forget what these are. alleging they were senior qatari official had paid bribes to people voting for where the next world cup would be held, and as a result was trying to buy those votes. now they are saying he had a $5 million slush fund which he used to pay out rhymes. it's important to know the qataris say they denied these allegations completely. he said there was nothing to

respond about, but clearly the and thesors of fefa world cup are not happy. sony says they expect fifa to adhere to principles of fairness across all aspects of operation. adidas has said the negative 10 or of the debate is neither good fifa.otball or until few weeks to go this kicks off. no one wants that to be overshadowed. >> the type of conversation they would want taking place. some of these partnership deals go back decades, don't they? >> very much so. it seems unlikely these massive corporate sponsors. there is also coca-cola and all long of others who have a

association. way to spendat their money. ib does has recently expanded until 2030. it seems unlikely these big sponsors are going to drop out although they may continue to exert pressure on fisa one way or the other. will there be a recall of the voting for the world cup? if these are proven. the qataris deny these allegations. ifa toould be up to f decide what sanctions to impose. the former u.s. prosecutor michael garcia is due to hand the report to the ethics committee next month. it will decide if there are grounds to act. ifa took to fe twitter, saying to let the ethics committee work. if you check out the responses,

you will see what value many people out there attached to that. rip you words i can here. >> very diplomatic. think you very much. >> disappointing global growth and policy mistakes in europe. our next guest says those are just three of the key risks to investing. find out the other three when read return -- when we return.

>> japan's economy grew. >> 6.6% was the actual final reading.

what was driving it? business spending. consumer spending also. bear in mind this is the first quarter. it was before the sales tax rise. that was the reason why growth was so strong. the concern is if it is so strong it could be even weaker than forecast. the concern was how it could impact the second quarter. topics were really quite low. the figure is strong. they are looking forward to the second quarter reading. >> thank you very much. his ninthas won

french open. he is three behind. he has got 14 grand slams. will he overtake fedor were -- federer? >> yes, he will, but is he better? erer played, so i would argue his competence -- competition at the time was far more varied. >> isn't there enough football that you have to bring up tennis as well? thank you very much. what are the key risks i need to be aware of? our next guest has come up with we thought we would look

at the risks and we could delve into your thinking. global growth disappointment. crisis in emerging markets. and geopolitical risk. is there a number one? >> there is. do with complacency. i think people have short memories in general and more so when markets have been as strong as they have. the combination of servile ua shins in certain areas and market complacency, which gets priced in. >> it is in a seven-year low. it has come within two points of an all-time low. >> every time starting with those levels, the markets are

going to do well. i am not saying we're going to see a massive repricing. . think it's always difficult >> can we position ourselves for ?olatility >> yes, we can. on six give you options equities index. if the market falls it wouldn't at the same time this is about making sure we don't lose money first, and

things always take care of themselves. >> what are interest rates telling you about where they are in global rates? it was global rates disappointing? or is that going to happen? >> especially in the u.s. there is a big reason why interest rates in the u.s. have been shocking investors. a lot of big investors have lost a lot of money. growth is notat as strong as it was expected to be at the beginning of the year. recovery which is not sustainable. part of the weakest recovery we have seen versus where we were. let's be careful. asset prices are still but not the place to

lower the guard. we don't really like cyclicals yet. i would say these irrational expectations make sense to us. you might see some normalization. fundamentalst the you would have more than you have now.

let us not just think the fed will be here forever and ever. >> talking of expectations, spain, world cup? your expectations are high. >> i am much more confident. and more confident on the football team than spanish equities. >> thank you very much. >> 7:22. they are unveiling a new tesla model to break into the u.k. model. he has one feature he is betting is going to be of particular interest. find out what it is next.

>> time for company news. re-of -- three of fifa's biggest corporate sponsors have expressed concerns about impropriety. visa issued, and statements. sony attempting to turn the playstation 4 into an entertainment powerhouse by developing a virtual reality headset for the gaming market. it will be unveiled at the electronics and attainment expo today. oculus,f competition is the virtual reality goggles

pioneer acquired by facebook. switzerland's second-biggest bank is considering additional stakes in an interest trading unit. credit suisse is seeking to trading asd income more businesses conducted electronically. new capital roles limit the leverage the banks can have. heard of a honeymoon bounce? it has to do with the unlikely link between the world cup in the equity markets. we will explain in a few minutes time. also what the future holds for ukraine's independence square. it is still occupied by protesters, but the new president wants to change that. we will be back with more on both of those stories in just a couple minutes time. stay with us. >> welcome back.

let's get a check on currency markets. caroline hyde has the fx check. >> i'm focusing on the yen. we have japanese growth at 6.1%. faster than had been expected. there is more optimism about this pace of growth. we have china showing growth. we have the united states showing growth. maybe a little less demand. currently the euro again not much of a change today, but it is at the three week low versus the euro. we are seeing movement out of the haven, particularly

considering it has a smaller current account and anticipated. it is less than $2 billion. bet year after year this would be a country that would post the current account surplus. foreign capital they needed it less. this is a country of savers. they haven't had to borrow from foreign countries to be able to service their huge amount of debt. they are looked at as a haven. the surplus is getting less and less. currently we see the yen weaker, close to a three-week low against the euro. >> these are the top headlines. roughly on the doll -- raphael beat djokovich.

the most important tournament of the year. the bid to be president of the beenean commission has dealt another blow. sweden's prime minister is voicing his concern about the process. they are hosting the leaders of germany, holland, and the u.k. today. david cameron has been threatening to pull written out of the e.u. if juncker is pulled out of the job. in ukraine the violence must end this week. porsche ago was sworn in as porodent -- or shank go -- shenko was sworn in. peace talks are underway. >> time in london is 732. ukraine's independence square was the focus of the revolution that ousted viktor yanukovych. the square is still occupied by

protesters. ryan looks at how they plan to reclaim this. kiev's independence square is a living monument to revolution. a bastion of people power were ukrainians united to overthrow a corrupt and unpopular president. >> our last president is a very bad man, and all ukrainians want to kill him. >> last winter hundreds of thousands of ukrainians gathered, embattled in battles with the government. it was the second time in a decade protesters occupied the square. yanukovych is gone now, and the new rulers brought to power by the very revolutionaries say they must go. they have served their purpose. it may even be a threat.

division.there is >> the election of a new president, it should slowly go away. >> independence square has done its job, but the government hasn't. we won't leave until they deliver on their promises. >> the main battleground for ukraine's new president is in square hashe main already become a challenge in its own right. after petro poroshenko was came to the police remove the protesters but were sent away. now.an joins us ukraine's president has his hands full. what are his big challenges? >> is biggest challenges the fighting in the east. he has to solve that. then he has the economy set to

retract. that is based on diggers done before they the fightingcause is done in the industrial heartland. a sixth of gdp comes from there. they don't like their leaders they are used to throwing them out. in effect they brought him into power, but they could throw him out as well. >> the big question is can the violence stop. many would say that is a real challenge. >> a lot of people would say it takes two to tango. i have asked what is he prepared to do for a cease-fire. i asked the separatists. all he could say was what the central government does. >> football and economic stood usually appear in the same sentence.

to walk through some of the findings. they should be mentioned in the same breath. it would be great television. what is the link between the world cup and stock markets? have you found whether you are the runner-up? >> there is all kinds of speculation about who wins. statistical history says you might as well wait and find out. there seemscountry to be a sentiment boost that you get. it doesn't last that long, probably three or four weeks. virtually every time over the last three or four decades a country has won their stock market has had a rally relative to the rest of the stock market. >> is there a fundamentally between hosting the world cup and economics of the country? >> there isn't a very strong one. it costs a lot of money. it's very difficult to really find the statistical

longer-lasting legacy. difficult to identify those. think will who you be the winner. winner --e a short window. that is what most people expect. our model is based on looking at the history of international football matches going back to the 1960's. we have about 14,000 observations. firmly as aazil safe haven. they benefit from being the host team as well. >> i'm sure your model is terribly sophisticated. he is off doing his own thing. all of this comes to the same conclusion that result, argentina, and spain will be the

final four. >> first of all the probability when you are outside of the top seven or eight tends to fall dramatically. very difficult game to predict. that's why it's a beautiful game in many ways. like are lots of things injuries and how many cars people get. this is an interactive model we will update as it progresses. it's a very low-scoring sport compared to many others. very difficult. predicted sachs england won't get past that group, but it's quite close. it wouldn't be surprising if they got through, but they are just outside the top two. you are saying italy and uruguay will progress. >> that's what we are saying. >> what's wrong with you?

your report you talked about football and economics, how we will always remember who won the world cup that we will never remember how the economy fared that year. the question is how was the british economy in 1956. i now know. 1960 six or atws least people in england do. >> he's to be quite integral to this report, but i quite like the fact that he is no longer producing this report. you are free to declare allegiances to other teams. other teams exist apparently? >> one of the questions you posed in your big report pieces when will china and india play in a world cup? within the next decade or two or not? >> it is still so dramatically dominated by the european and

south american teams. when you look at the probabilities, the rankings are very dramatic. it is growing in interest. each time they brought in the spectatorship and the interest outside of those regions. >> there is something for the real nerds in your report. you have a report of the threat of disinflation of gold and the importance of land as a factor in production. that is a thesis topic if i have ever heard one. >> is there a dark horse from your perspective? to might be the dark horse win the world cup? >> i would say maybe they'll belgium.

>> one of the better european teams. >> you focus on the crisis in spain and the restructuring up spanish football. we since the global or financial crisis has taken its toll on funding? team i understand was given big incentives to win financially. huge amounte is a of focus. we have seen the winning team tends to get a boost. i think it does give a short-term boost. one of the other interesting findings is the runner-up tends to see a slump in confidence. you tend to get the stock market underperforming. when you look at it

performance wise it is up by three percent. it has come off its march low. it is creeping higher ahead of the election. people are thinking they might actually have realistic challenges. >> i think we are generally quite cautious for emerging markets more broadly. i think brazil has economic challenges. i think they are getting less bad. the fundamentals are what is going to drive the stock market. anything in the world cup maybe short-lived, but what happens to growth? interest rates are going to be crucial. i think there is still a long way to go for the brazilian economy. things are getting a little less bad. >> thank you for joining us.

>> 7:42 in london. lloyd's just announced the price range for the shares in the ipo. details next. ♪

>> welcome back. >> 7:45 in london. the billionaire chief executive has just launched a special version. of a porscheickup and the strongest batteries on the road. for two years the tesla model s has been the green luxury car. 25,000 are on the streets of the u.s.. why are they tweaking with perfection? never seene you have it before. for the first time ever the steering wheel is on the right side of the car. inside all the bells and whistles you would expect to find. the 17 inch display. full view of google

maps. i am checking the range. you have a voice controlled. eminem "berserk." .t is a minor tweak >> the u.k. is likely to be one of my most significant markets between 3, 4, and five. advance orders are very strong in the u.k. if you order a car now you would only receive it in four months. we are putting a lot of effort into infrastructure. we want it in all the british year.for next the infrastructure is quite significant. we will be spending tens of millions of dollars. >> it starts at 50 pounds. for will turn over the keys

the first owners, among them the author of 50 shades of grey. >> it's a dream. it's useful. it's a beautiful car. steeringope that the wheels will springboard into other countries where people drive on the left side of the road, including india and south africa. charging the cars will still be a challenge without the infrastructure in place. these new supercharger stations may prove to be the key to make major new inroads. olivia tells us voice recognition works better if you try an english accent. she is working on that. berserk,he asked for the tesla model thought it was desert.

>> jim got in touch with me because we said we were going to play this. jim thought when we said it had a special british feature it was going to come with a fish and chips cupholder. i hate to disappoint you. cup fish and chips are in a . she knows what i am talking about. they have them in a nice posh cup. in terms of novelty newspapers. >> you didn't come all this way to talk to us about this. >> i didn't. we are talking about another british institution. we get details of the share sale. they hope it is going to be on june 20. two pounds 90 is the upper end

of the range they are looking to sell these shares. 120 5 million shares. that means it is worth just shy at the topion pounds of the range. there are indications this is a discount to the book value. they want to stir up demand from retail investors. they are going to be looking at some of the demand. we want to get more consumer lending, more retail banks to compete. the 20th of june they are going to be trading. >> thank you. hasoming up, the pipeline been in full swing. how much can investors get on the listings? not much says our next guest.

>> i am mark barton. >> the time in london is 7:53. we are moments away from equity trading for the week. joining us is david buick. good to see you. we were talking with caroline

about the lloyds banking group e oh, and you have some thoughts gpo's and thef amount of information available. >> in comparison to when we had that they run for the market went down, there were in a number of ipos, lots of funds. now it has contracted. it is not easys to get a hold of information. this is a classic example. there are several investment banks. impossible to get on eye on this. be independent valuation for these. initially we had 700 million, very low.

tsp has to lob it up because the european union says so. there is a 400 million contingency depending on performance. all of a sudden we have a .elegraph saying a 10% discount where did that come from? we need an explanation. the fact is there are lots of idiosyncrasies. 3 know lloyd's is lending billion pounds of its balance sheet, which it has to give back in two years time. why and how? where did they go for profits? the stats of companies that have listed have risen by one percent. is the ipo market dead? >> too many indigestion. you have got to really price it to excite people.

otherwise you are asking for trouble. >> thank you very much. >> on the move is next. it is the meeting that could claude john called juncker's efforts in the you -- eu.

>> good morning. welcome. are moments away from the start of european trading. it looks like it could be a solid open. japanese gdp.ed china looks very good. it is a bank holiday in france. they are going to take it easy. the rest of us are hard at it. elliott gotkine, let's start with you. >> we will be taking a look at what is happening in sweden where leaders are trying to

figure out who is going to be the leader of the next european commission. the longer this takes place the less likely it is shawn called r isre -- jean-claude juncke going to be the head of the european commission. >> the president of ukraine says he wants to end violence. what are the odds? that is the question i asked putin. another week, more allegations of impropriety against qatar and the winning bid to host the world cup. sponsors aren't happy. i will have all that and more. will be back a little later in the program. that is what we are watching. european markets are just starting to get going. france is going to be fairly quiet. we have a bank holiday.

volatility is the story coming into monday. us about this tell where we go from here? are we setting ourselves up for a fall? caroline has more. >> it is a day for appetite for riskier assets. let's look at the australian dollar. grows across the board. you have china debt debt exports up seven percent. stronger than expected. the biggest trade surplus in five years. it is taiwan and hong kong. that is where demand is strongest. imports were following. a bit of a worry for domestic demand going forward, but we are starting to see optimism export data will help support economic growth in china overall. look at the renminbi.

come back to some of those currencies later. asia was trading higher. we will get a look at the european map a little later, but generally we have got money going into the riskier asset. spanish borrowing costs trading lower. italian borrowing costs trading lower. running costs are rising for germany. stronger than expected. 6.7%. the second quarter might be a bit of a concern for japan considering the sales tax rose, but third quarter we will see growth once again. in better than expected. more than 200,000 jobs in the u.s. for the fourth straight month. wages looking from her as well. europe we turn to the sentiment. we look at investor confidence. to beks like it is going on the rise. stocks are expected to trade

higher today. afraid i have a little bit of problem with some of my data. i will be updating you on european trading. > thank you very much indeed. >> let's get some perspective on what we are seeing in the markets right now. the chief investor helps manage $90 billion. good morning to you. the beginning.in volatility. how should i be reading the fact it is down as much as it is? i know we have been as low as 10, but we are getting too low levels. read between the lines for me. >> i think it's a reflection of the amount of liquidity we have got in the system. he heard the ecb saying they are going to fight. we have ongoing qe around the world.

a functiont is driving volatility down. >> from an asset point of view, what do we do? >> i think we have to keep an eye on it. in the past we have had a fairly unpleasant experience. i think it's something we have to pay extra attention to. i think it's low interest rates, liquidity, and investor confidence. >> just looking at how you have got the market broken at the moment, if you were to look at aat you don't like, is there chance we could be thinking of central banks are buying guppies we should be buying them? or do you think the price is wrong? >> the price is rigged. whether it is wrong we will find out, but it is certainly rigged because there is a dominant buyer affecting the price. >> clearly they are going to be in the market for some time.

they are going to be the dominant buyer. we don't know where the ecb is going, but let's assume at some point they have to step in and make it new qe. as part of mythat portfolio? do i need to keep it as part of my portfolio? roasted we will have some credit in the mix. we will have some credit in the mix. how should i view it? >> if growth picks up the rates anl go up, but there is argument given the debt overhang we are going to be lower for longer, in which case government bonds aren't necessarily expensive. they might not be going up very much. ae key is whether we get pickup in growth, and that is where investors are focusing their attention. >> you like the dollar.

>> i think it is about the growth premium. i think that is why we are invested. >> in terms of where the fed is going, are you concerned about the data coming up? the fact they may slow the rates at which the fed is going to be tightening? they are taking the rate cut quite significantly. >> probably most of what we look number.s the gdp >> they are pointing at a much better story. >> the data would suggest growth is more robust than the gdp number would tell you. >> to come full-service you talked about the fact that when we got to these levels in the past we have had shocks. wer expectation would be

would see a negative shock. if you were to handicap the negative 10%eing a drawdown between now and the end of the year, is that going to happen? we haven't seen it in sometime. >> if rates stay at this level i think you are as likely to see a rally in the equity market because of the discount rate. assets will be affected by the low rates. more likely to be down than up. it is fairly even. >> the one thing you know is central banks will step in if they see a problem. by what it concerned might mean for markets. as are likely to see a rally of fall. >> thank you for joining us. here is what else we are looking at.

details coming up. putin comes to the table. the russian president calls for an immediate cease-fire. ♪

>> welcome back. we are on your phone. we have got it all covered.

company. french let me show you what is happening. there is a bank holiday today. the stock is down by six percent. one of spain's biggest property developers is agreeing to sell its 20% stake in the french rival. the stock is down on the back of that share sale. we are waiting for a price. we will keep you up to speed on what is happening in italy. let's get you back to politics. it is the ukraine story, and it continues to make headlines. president putin's envoy sat down with ukrainian diplomats in a bid to establish a cease-fire. freshly inaugurated president held his first be stocks. question is is it realistic to get the end of the violence

he wants by the end of this week? have a listen to part of our exchange. >> now that we have had this meeting, how likely is a cease-fire in ukraine? to have aou do cease-fire, and how quickly do you think the cease-fire can be achieved? >> they need to stop the punitive operations in the southeast. so far no one has said anything to them. no one has proposed anything at all concrete. people need to know where they are going to live and what the parameters will be.

there is no conversation about that. there have been arguments and debates in the frame of roundtables between the candidates. no one invited any representative from the that situation needs to be radically changed. the presidential elections in ukraine are over. we need to move to substantive work. >> what are the odds a cease-fire can be achieved in ukraine? >> i think the ukrainian leadership must show its goodwill and wisdom. they have to immediately stop , a military operation

cease-fire. there is no way to create the conditions for negotiation. >> you don't have to listen to the russian president or a carefully to understand he didn't actually answer my question of what he is prepared to do or what the separatists are about to do. it is all about what ukraine's central government must do if there is going to be a cease-fire. it takes two to tango. the ukrainian government wants the separatists to stop shooting first. he says they have to stop shooting first. this is not an answer key of will like. it out an answer the european union or angela merkel will like. -- it's not an answer kiev will like. it doesn't bode well for quick peace talks. >> let's go a little further north and west. juncker'se

candidacy may be smothered. they head to sweden to discuss who will take the top job. his party is pushing it too far. basically he can't get away from the fact there is a problem with the leadership. they are not convinced he is the right man for the job. merkel is still broadly on board, but what happens in this meeting? alternatives.s his party did win. it wasn't a clear victory. they did change the rules. they tried to have it set up so whichever party one would be all but guaranteed the presidency. there is still a lot of horse

trading. clearly they are looking from old guard. from the they are looking for someone who isn't a male. there is a great deal of speculation about christina two guard leaving the imf and coming to head the eu commission. here was her response. >> i have a job. i think it's a rather important job at the moment. we are not done yet. we need to continue helping countries out of the crisis. strong is i believe a institution. i intend to participate. >> you mentioned she is broadly supportive of yunker. my only caveat is if this is what her support looks like, what might her opposition look like? she is clearly not extending thetical capital giving him

position. she wants to keep david capron -- david cameron happy. if this means sinking the candidacy, i suspect angela merkel will go along with that. >> there are a few other names as well. guys see themselves as reformers. what are they going to reform? what are they talking about? >> and away this is a better question for anyone in the u.k. because it is benefits, benefits, benefits. they need to tighten the rules. expect the referendum in 2017. a could largely be dominated personality. >> politics and personality hand in hand. our international correspondent. we are days away from the start of the world cup. we are going to go inside the

stadium. hundreds of thousands of people are going to be there. the question is are they going to be ready. the answer is not quite yet. we will take a look when we get back. ♪

>> welcome back. brazil has spent more than $11

billion in preparation for the biggest sporting event on the planet, but the country isn't ready. we went to find out why. >> let's say you're going to brazil for the world cup. here is what you will see as soon as you step off the plane. expect some traffic on the way to the game, and when you finally get there, our hardhat might come in handy. take that $365 million stadium. it has been a scramble to get it finished in time for the opening kickoff on june 12. with just weeks to go entire sections still had no seats and much of the roof was not installed. outside this was supposed to be a huge parking lot designed to hold dozens of buses. the inaugural match was barely able to accommodate a half size crowd.

will happen when they try to pack in twice as many people. it could be a security nightmare. some of the parking around the stadiums, the uncertainty of where is it able to go and not go. it is an uphill battle of all of us who have the responsibility of protecting these folks. >> the world cup is the biggest sporting event on the planet. i is in brazil ready? , why should went have the world cup? the country is in a very difficult situation. >> brazil spent re-$.6 billion to build and remodel stadiums in -- 3.6 billion dollars to build and remodel stadiums. terminal at the

overcrowded airport won't be completed until after the world cup is over. this airport renovation is months behind schedule. did little to fix the problems that lead to epic traffic jams. there north in the amazon is a city closer to being ready. town., a jungle boom >> how much work do you have left? >> [portuguese] >> they will host one of the biggest matches of the world cup on june 14. for us,very important

for everywhere in brazil. toneed to prove we are able receive 100,000 people. manage greating to events. we do trust our future concerning tourists. >> that is what is really at stake, not whether they will come for the world cup that whether they will come back. event. this year's looking forward to that wendy 22 biggestp, fifa's corporate backers have expressed concern over the way the football body awarded qatar. sony, adidas, visa, all pretty much adding to significant pressure to hold a full investigation to get to the bottom of what really happened here.

>> now the money is talking. the real money is putting pressure. it's going to be very hard for a whitewash to take lace and an investigation to take lace. -- take place. let's remind ourselves what these allegations are. the senior football official was in allegations a week or so ago bribeseged to have paid to people in the voting committees to help win qatar the right to host the world cup. the most recent allegation was he a slush fund at his disposal. that he also used the influence of the qatari royal family to broker everything from trade deals to gas deals. are denying these allegations. they say he didn't work for them

in an official or unofficial capacity. he doesn't seem to be too determined. nothing tohas got respond about. the sponsors are not particularly happy. we heard from sony saying they fairness across all aspects. adidas says the negativity is neither good for football nor for fifa and its partners. they expect it to carry out of the row investigation. -- of the row investigation. >> what happens next. >> the football world cup kicks off in a few days. the investigation the former prosecutor michael garcia is due to file a report to the ethics committee next month. it will then decide if there is

a case to answer. then we will see what sanctions if any are meted out to qatar. very much indeed. coming up the transatlantic war of words. we are going to discuss what happens next as well. we will see you in a moment. ♪

>> welcome back. you are watching "on the move here, i am guy johnson. 30 minutes into the equity trading take, how are things shaping up? that we have seen today has faded a little bit. equity markets by and large higher. a bunch of markets closed. those markets that are open, france where it its a national holiday, you see a lot of volume. let's get into the story of little bit further. caroline hyde is at the touchscreen with three stocks to watch. >> you said it. nine markets are shut today.

those that are trading, we see banks leading the charge. particularly peripheral banks, spain, italy. stimulus going from the ecb, trying to get money into smaller medium-sized enterprises, into small businesses. peripheralng the lenders, so says jpmorgan. it goes overweight banco popular. it is slightly concerning that the carphone warehouse might not be selling ee contracts. ee, the biggest mobilephone provider in the united kingdom saying, we are looking at our retail situation. how about that merger? longere warehouse no supplying the biggest mobilephone operator. dixons group off by almost 2%. numeral -- by by

5%. the developer is having about 1.5 billion euros of its shares being sold by a spanish developer. they are selling their 27% stake to institutional buyers. down goes the share price. back to you. >> thank you very much indeed. let's get you into the bloomberg top headlines. japan's economy grew faster than estimated. gdp grew 6.7% versus the estimate of 5.9%. business investment also increased more than originally reported. china's analysts for the month of may oversee shipments gaining 7% while imports fell more than 1.5%. that left the biggest trade surplus in the nation in five years. left 17 security personnel and airport employees dead.

10 gunmen stormed a terminal late last night. the taliban has claimed responsibility for the attack. ukraine's new leader says the violence that has rocked the east of the country must end this week. petro poroshenko was sworn in as president over the weekend. he says the negotiations should be held on a daily basis. peace talks in kiev and moscow are currently underway. forshenko is also called the protest camp in ukraine's independence square to be cleaned up. that was the site, the focus of the revolution that ousted the former president, viktor yanukovych. how chilcote investigated the new administration plans to reclaim the square. independence square is a living monument to revolution. a bastion of people power where ukrainians united to overthrow a corrupt and unpopular president. >> our last president,

he is very he is -- bad man. all ukrainians want to kill him. >> last winter, hundreds of thousands of ukrainians gathered here engaging in battles with their former president's government. it was the second time in a decade protesters have occupied the square. yanukovych is gone now and ukraine's new rulers brought into power i the square's very revolutionaries, say they must go. they have served their purpose. they may even be a threat. suddenly, there is division on this square's purpose. >> with the election of a new president, probably it should slowly go away. >> independence square has done its job but the government has n't. >> for now, the main

battleground for ukraine's new president is in the east. the capital's main square has already become a challenge in its own right. after petro poroshenko was elected, police came to move the protesters but were sent away. ryan chilcote, bloomberg, kiev, . >> interesting story. more from ryan on what is happening in ukraine a little bit later. for now, let's turn our attention back to europe's banks. a $10 billion fine might be awaiting bnp. france's finance minister said sanctions could hurt the ongoing trade talks within the eu and u.s. what happens next? joining us is james ferguson, founding partner of a research firm. good morning to you. your sense is that this was inevitable, we were going to get fines of this size. money fromnks took the fed window.

they were going to therefore have to pay the price. the difference is, u.s. banks were ready for it. european banks, not so much. >> this has been an extraordinary disparity. this has been incredibly wealth like in the states. we have been getting 3, 4 articles a day in the u.s. financial press about the banks and about this implicit trade-off where the state stepped in at the moment of crisis and provided as much liquidity as was required. it failed out aig which was effectively bailing out the banks. fails, then the banks don't have a counterparty to pay insurance. it was a front door bailout of the banks. all banks got it, no matter what nationality. a lot of the banks that were benefiting were european banks which have large investment banking activities across the atlantic. rbs and barclays from this country. hsbc to a certain extent.

deutsche bank definitely. among french, front and center, bnp. it has been the implicit deal in america, the trade-off. we bailed you out. now, how are we going to get them back? one of the ways to get them back is use the legal system. the legal system is not sending people to jail, but has been in forcing enormous fines. >> the pound of flesh is being firmly taken. >> the u.s. system will be quite a tractable on this. this is a repayment. this is not a nasty out of the blue $10 billion fine. 20. is a, hey, you owe us we will take 10 now. >> bnp will be ok. northpital ratios will be of nine, slightly south of 10. there are other institutions that don't have that luxury. how far is that going to go? how many other institutions haven't paid the piper yet? >> we are really -- the first

big headline european bank to the hit with these pines is bnp. the list is a fairly obvious one. anyone who has had big investment banking exposure in the u.s. although bnp is ok according to the current capital ratios, that is because the capital ratios are in the process of being tightened that we can't tighten them too fast. >> and we still don't know what is going to change. things that could still affect the story here. >> if you look at the capital that the bank has, we are looking at about 65 billion euros. billion fine makes a significant impact. maybe up to 20% impact on the capital. you have also got a wholesale funding gap. is too many risk assets compared to its current

level of deposits. we are now going to say it has too many compared to capital as well. the reason why the french are getting very upset is that it implies a faster contraction of bnp, which implies a worse outlook for the french economy. >> ok. other names? there are some fairly obvious other names. we don't know the full extent yet. can i assume there is a response -- the bigger amount of money you took from the state, the bigger the fine is going to be? >> implicitly. the actual fines are being targeted for actual misdemeanors that have been found. the size of the fine, one can't help thinking, -- >> hsbc has already been fined. not much relative to this. >> the thing that the banks are being fined for also. there have been instances where the banks have put together security packages and things like that which we haven't really dealt with yet.

that the help feeling tenor and america has always been that banks should be paying back something proportional to the size of the bailout. that was proportional to the misdemeanors they had been committing. >> this morning, we were talking about 2015, 2016 data points. european banks will start to return cash flow again. is that presumptive? >> i think so. we have the aqr coming up. that can fall into two camps. it could be surprisingly robust. the banks don't look as well capitalized as we think. that is typical for a post bank crisis resolution. or it is another whitewash. everyone goes, even the ecb is tainted. that must mean all the banks are not able to pass a rigorous test. we have until 2019 for the banks to come up with what is called the fully loaded capital measure. in the u.k. we are already

feeling that some banks are strong enough to start using that. barclays, the prudential regulation authority said to them, bring us to the 2019 levels. that we haven't done that to rbs or lloyd's. as a rule, continental european banks don't appear to be terribly ready for this. therefore we are still having to treat it as a systemic bailout. as you say, the risks to europe are proportional to how big the bank is. globally, systemically important banks that have a european homebase, those will be very active and are going to be vulnerable to big fines which people have to build into their models. optimisticks pretty if you are a cynic. and i am a cynic. >> james, nice to see you. every time i see you use a cynical things.

>> for the last five years. it is just realistic. >> that is a very fine line. nice to see you. james ferguson. we are going to take a break. coming up, elon musk sets his sights on britain. he has put the steering wheel on the other side. details next. ♪

>> welcome back.

you are watching "on the move." elon musk is betting big on britain. the ceo of tesla just launched a special version of the model s which he hopes will land the electric carmaker a big foothold in the u.k. market. what has he done? olivia sterns reports. >> with the pickup of a porsche and the strongest batteries on the road, for two years the tesla model s has been the king of green luxury cars. already 25,000 are on the streets of the u.s. so why are they tweaking? this is a tesla s like you have never seen it before. for the first time ever, the steering wheel is on the right side of the car. inside, all the bells and whistles you would expect to find. the 17 inch display. >> a full ipad sized vision of

google maps going. i am tracking my energy comes in june -- my energy consumption. >> voice control. em, "berserk." >> it is a minor tweak for tesla founder elon musk who is betting britain will be his top market in europe. >> the u.k. is likely to be one of our most significant markets. so far our investors are very strong in the u.k. if you order a car now, you receive it in about four months. we are putting a lot of emphasis into the supercharger infrastructure. we want to have funding covered by the end of this year. the infrastructure rollout is quite significant. we will be spending several tens of millions of dollars over the next year. >> it starts at 50,000 pounds.

owners,e new best-selling author of "50 shades of grey." >> it is a beautiful car. hopes right side steering ales will spring tesla into other countries where people drive on the left side of the road including india and his native south africa. charging the cars will still be a challenge without the infrastructure in place. in britain, these new supercharger stations may prove to be the key for tesla. >> olivia, i have to ask, did you put your foot down? when i drove one i did and it is quite amazing. >> it is quite amazing. what you should really be proud of me for is that i can actually drive on the left side of the road. i really like the car.

an electric car has a very different pickup, but this has the smoothest suspension of any electric car i have been in. elon musk told me this is going verye beginning of a rapid expansion. this is the beginning of a big new push. he think britain is going to be his top market in europe. eventually he hopes to set up a manufacturing center both on continental europe and here in britain. it is all about capacity. they can't churn them out fast enough. >> that is absolutely true. let's stick with the transport theme. what do we have coming up? >> we are discussing lanes. we have an exclusive with the ceo of one of the most profitable airlines in europe. it is the summer travel season. we have easyjet and ryanair ramping up capacity. we are talking about what that could mean for pricing.

plus, the battle for the european commission president. hisre going to see what prospects are for taking over that position. we know david cameron is opposing him, thinking he is too much of a federalist. finally, we will be discussing this $10 billion potential fine facing bnp paribas. will they have to cut the dividend? will they have to raise capital? will they have to pull that sponsorship? all that and more coming up on "the pulse." >> thank you very much indeed. olivia sterns and i will be back at the top of the hour. let's talk about some of the companies we need to be discussing. nintendo plans to cut around 130 jobs in germany. the game maker is planning to close one of its offices and warehouses in the country. the reorganization is expected to be complete by the end of august. russia's second-largest wireless operator has agreed to buy out $600 billion worth of

equipment. the deal comes at a time when ties between russian and chinese companies appear to be strengthening. facebook claims it can reach 500 million football fans. that is according to the financial times. the number has almost doubled twitter's mobile active user base. facebook has the upper hand on twitter when it comes to live evidence casting, which has been seen to dominate the arena. facebook calls its user base the biggest stadium on earth. 500 million, pretty big stadium. let's stay with soccer. this time, the physics of a football. whatever you want to call it, it is happening at this nasa facility. we are going behind-the-scenes to find out what makes the bazooka better. ♪

>> let's return our focus to the world cup. three days left until kickoff. features a ball ball six panel structure and a rough micro texture. the ball is always controversial. they are trying to fix that. nasa's aerodynamics experts are

going to help us explain. >> aerodynamics basically is the study of fluid flow around objects. nasa is not in the business of designing soccer balls. herewe do use sports balls for education purposes. we found it is easy to get young kids interested in our field by this.g something like what we have here is a wind tunnel, a chamber through which air flows. when it comes to soccer balls, what we are looking at is the flight of the ball through the air. there is a thin film of air that forms near the ball's surface. that is what we call the boundary layer which is critical to the performance of the ball.

aerodynamics is the structure of the outside of the material, the roughness. that is what determines the aerodynamics of the ball. knuckling is when the ball flies erratically through the air or it may change directions. what we have done to the b increased has been since 2010. what we are looking at with the smoke pattern is, where does that smoke leave the ball. when that position of that separation location changes, that is the speed at which the ball will not hold the most. the basic message for the players is that, you will see ing affectis knucklo and find that it behaves more like a traditional ball.

>> it is a football, not a soccer ball. anyway, we are nearly an hour into the trading session. what do we need to know? let's go to caroline hyde. --we have got a number of nine markets today, a lot of holidays going on. we have spanish and italian borrowing costs at record lows. it is all about divergence in policy. ecb pumping money in. we have significant uptick in terms of the amount of people that are being employed. therefore we are likely to see u.s. borrowing costs rising. below 10 year borrowing costs. >> that is a little reflection on the state of the world we find ourselves in and how influential central bankers are. thank you indeed, caroline will be back later. stay with us. bloomberg television continues.

olivia sterns and i are back with "the pulse." don't miss our exclusive conversation with the vueling ceo. alex cruz. he has a lot to say about the airline business and the economy. ♪

>> david cameron, angela merkel debate who should head the european commission. >> a call for peace. resident putin says a cease-fire between russia and ukraine must happen immediately. >> plus, piling the pressure. to dig intoe fifa corruption allegations surrounding qatar's world cup bid. good morning. you are watching "the pulse." er live from bloomberg's european headquarters.