>> david cameron and angela merkel about debate over who should headed the european commission. >> a call for peace. a cease-fire between russia and ukraine must happen. >> the pressure. sponsors urge fifa to dig into allegations. the world cup bid. >> good morning. good evening for those in asia. i am guy johnson.

>> i am olivia sterns. this is "the pulse." muskg up this hour, elon is betting the big and how he hopes the new model s will help the year. span. take you for a >> world cup kicks off in three days. is brazil ready? why the nation is not up to speed. that is later on "the pulse." in the meantime, the top story. jean-claude juncker's candidacy may be smothered today. david cameronand and dutch prime minister are in sweden to discuss who will take job.u's top hans nichols joins us from berlin. juncker's won the most seats in last month's european elections. can he waited it out and hope it will come to him?

for the politicians are getting their heads together and it will be tougher? >> he cannot wait it out. time is not on his side. moreonger he waits, the opportunity for a replacement, additional compromise candidate. christine lagarde said it would not be her. when you hear from the british and they are leaving this anti-juncker charge, not so subtly, they really want to have a female and that top job. for them to sing the younger tendency. you look at the opposition. sweden and holland are opposed. opposed.o the question in all of this is how firm and strong is angela merkel's support or issue willing to trade it away and give david cameron a political so cameron can go back to voters is that i am influencing things and it is better for us to stay in eu and

rewrite some of the trees and have better autonomy. at the looks like -- the longer it goes on, the harder it is for juncker to make his case he is the de facto candidate. >> the british press has been hounding for the tabloid up dirt. trying to dig what is going on here? >> the british newspaper discovery juncker's father in 1941 had joined the german army. younger and his people are responding that this is disgusting. you're seeing younger -- you are junker turn it into a test. they are pretty opposed to. it escalate our the weekend. british tabloid is 6/13 into something, it is hard to get out of their mouth. intonk their teeth

something, it is hard to get it out of their mouth. >> ok. let's move on. thank you very much. hans nichols joining us from berlin. chris the first pizza -- the first peace talks -- >> the first peace talks began. for asecond down cease-fire. ryan chilcote has the details. as you cranes president wants peace order and and into the bios by the end of the week. -- ukraine's president wants a piece order by the end of the week. i put in the question, what are the odds we will see a cease-fire? have a listen to part of our exchange. >> you had this meeting with poroshenko. president obama. how likely is a cease-fire in the ukraine and what can you and what will you do to achieve a cease-fire? and how quickly do you think a

cease-fire can be achieved? >> i think it can be done immediately. they need to stop the operations. it is the only way to crater conditions to start real negotiations. tocreate real conditions start real negotiations. no one has said anything to them are propose anything concrete. people do not know how they will live and under what conditions and what the parameters of the new constitution will be. there is no conversation about that. there have been arguments and debates between presidential candidates but no one invited a representative from the south east.

that situation needs to be radically changed. the presidential elections a ukraine is over and the fight is over. we need to work with people. odds that athe cease fire can be achieved in ukraine? >> i think that ukrainian leadership will and wisdom. it will show it's a good will and wisdom. have to stop the military operations. immediately i announced the cease-fire. themmediately i announced cease fire. no other way to grade the conditions for negotiations. >> you can be forgiven or the russian president could be forgiven to think i had as what the ukrainians need to do. i asked what he could do and what he is prepared to do.

you see but all of this on the leadership of ukraine central government. they need to do this and that. he did not say what he was prepared to do nor the separatist could or should do. is what the west would have liked to have heard. they would like him to say they shall put out their arms -- they should put down their arms and the army and have a cease fire. that's not what we heard. >> read between the lines are forming. we get to scissor that putin is pulling strings and have the ability. and having ability over these guys. what degree does he have the ability? >> of the european union, the west, the united states believe he has in florence. to jump intog that. he has some influence. they want to be part of russia. they say he is the man that can make it happen.

that is correct. so-called mercenaries and that came from russia. he has a little bit of influence. we have what analysts would say maintaining the but there he does not have any influence. at no point does he say they should put down their arms because no suggest he can bring it about. that is the big disconnect. he has to basically hang of these guys up to dry fighting in the east of the country. the only concrete move we saw out of the talks between him and merkel and poroshenko was that on saturday, he ordered the troops in russia, at least on paper, he ordered the border troops to seal the border and the ukrainians are trying to do the same thing. that would prevent foot traffic and new fighters and weapons. that could be a start. that is just in order. >> all right. thank you, ryan chilcote.

>> looking forward to the world cup, the biggest torpor in are expressing concerns over a new round of alice -- of allegations. backtt gotkine has gotten and he joins us. visa, big names and they are adding the pressure, a great pressure to the investigation here. >> very much so. or forget go away about as we get to the kickoff of the 2014 world cup or any hopes of brushing this under the carpet seems to be blown out by the allegations and the fact these corporate sponsors, big financial backers, the money, is now saying fifa you need to sort it out and have a proper investigation. fisank that is something

has no choice about. let's not forget what these allegations are. they started in "the sundays time" over a week ago suggesting that the most senior football ibes to getd paid br people to vote for them to host the world cup. the laces allegations that has millions of documents suggest he has a slush fund in order to get more votes and use the influence of the royals two broke a trade deal in order to get the votes for the 2022 world cup. the qataris are vehemently denying. -- heofficial capacity said he has nothing to respond about. so, that's what is going on.

the corporate sponsors think something needs to be done. we have heard from the likes of sony and coca-cola. they're all saying a proper investigation needs to take place. they said the -10 year around fifa is not good for football or fifa and its partners and that is a bit of an understatement. three days before kickoff. waybviously, it is a long off. are there talks that qatar could lose the world cup and what is next? >> what happens next is a focus willfa which they hope switch to the actual football taking place in brazil. we do not know if more allegations or revelations might come out in the next few days. a bit more explosive to coincide with the start of the world top. what did happen in terms of the investigation is where michael garcia, a former prosecutor, he

is due to send his report to fifa's ethics committee. it will decide if there is a case and if there is, what action ought to be taken? more allegations could emerge they could be more complaints from a sponsors. the key thing here is not of the big sponsors have broken ranks. , youare not saying, fifa are not doing the right and you are dragging your heels. many say fifa will carry out the investigation, but none came out and criticized fifa because they are waiting to see. and as transparent as they expect. >> our middle east editor. >> the transatlantic war of words. the $10 billion fine and awkward situation and to trade relation

between the u.s. and europe. ♪

>> good morning. you are watching "the pulse." it is monday. european markets. let's take a look of what is happening in the fx story. volatility under pressure as is the euro. we spied earlier on a but since then, what i've been told, real

money rallying and it has taken us lower from the get go. 136. slightlyn see, negative for right now. the big story out of the eurozone and if you are america, do not take offense. areish tenure of the bonds, trading below treasury. there are other european bonds that been doing ever quite some time. look at the irish. trading on par as we speak with as. 10 year post-up is that reflection of the reality of the economic situation? -- different project ariz? ctories?ariz -- proje it has been interesting. heat for $10e billion fine looming over allegations of sanctions.

a top regulator pressured them to fire a top executive. what does the future look like? a banking analyst. good morning and thank you for coming down. the market is close in france. phe pressure is building can bn afford it and billion dollar fine? >> bnp is a very strong bank. , it willke the fine take to 9.6. it can climb back. by not paying the dividend, it can switch. they can generate profit which is very likely. theould be to climb back at end of the second quarter. >> on the strength, bnp is quite strong. evenly operating stricter and stronger. they will still be at 7.5%

growth. it is -- [indiscernible] the outlook or outset. -- how doesman management play this? it will potentially freak out investors. they were fine. does that encourage and regulators? if in an uncomfortable situation. if they say we are very strong and can absorb this easily, it will attract a higher fine, on the other hand, if they say it they lose., then they have to tread a fine line. has an interest in clarifying the situation. at the mosto things likely way they will raise money? dividends? raise capitals? other ways? 10% and the second

quarter, if they suppress the dividend and the provisions, the generation through profit is another 24. there is a gap of 24 basis points to climb back. they can do that by reducing -- assets may be too conservative. assets of the smaller ones. >> how has management been bearing its head in the sand? will extract their pound of flesh. what is the window for the fed? they all got help, quid pro quo. what we are seeing is there is a reverse of that. should they have not seen this coming? ande do not know the end

outs. clearly, the u.s. authorities believe the press, they are criticizing bnp for being slow in the investigation and reaction. andre seeing the process trying to redeem itself in the last few weeks. quick is management response -- chris is management responsible for this? big fines have been coming for a long time. crews the big question is the chain of command, was a ware of this? indicated, it plays out in switzerland. the management would be exposed. the question is complying and controls at a high level. it would be an impact, with that being said, bnp it's a large bank. i do not think it will directly affect their business. >> manes said the find has become so big it's because management was not cooperating.

there is another reason why it is pressure. findk of concern about the or what ever the settlement is they could lose access to the u.s. dollar payment. if they do that, how big of a problem is it? >> payment system, the chips one. there are about 49 participants and bnp isn't one of them. bnp's share would be -- >> is it it is essential? wouldis essential and delay the pace which should be readily online. if you try to go into traffic. and the issue where bnp central bank are concerned. >> that could do damage to bnp's reputation with the global climate? >> soma may redirect their payments to other businesses to other banks. it is ongoing about that

situation. >> thank you to jean-claude lambert. >> we will take a break. we'll be back in a couple of minutes. ♪

>> welcome back. we arehave not noticed, the start of the world cup down in brazil. the biggest sporting event on the planet. we talked about how the design of this year's football is so

important. ♪ >> arrow dynamics of basically is a study of flow around objects. not in the business of developing soccer balls are any balls or testing them. we do you sports balls here especially in our lab for educational purposes. it is easy to get young people interested in our field. what we have is the wind tunnel which is basically a chamber through which air flows. when it comes to soccer balls, we are looking at the plight of the ball through the air. there is a layer that forms near the ball's surface and the behavior which is the critical to the ball.

why aerodynamics is the structure of the outside of material, the rob this. that determines the aerodynamics of the ball. -- the outside of the material the rough finesse. it may change directions as a goes through the air. what has been done is that by using the fingers on it, it increases. what we are looking at is where does that smoke leave the ball and at what point along the surface and the location changes suddenly, that is the speed at which teh ball goes. i think the basic message is that, -- [indiscernible] is more like at

traditional ball and it will be -- and they will be happier. was just aght it ball. >> i thought it was just a ball. amazing. >> will take a short break and we'll be back in a couple of minutes. ♪

poles"ome back to "the live in london. >> an attack ad drudge airport has left 17 security personnel and 14 dead. officials continued to search the airport. the taliban has claimed responsibility for this attack. the head of the european commission has been

dealt another blow. he is hosting leaders of germany, holland and the u.k. today. david cameron has threatened to leave the eu if juncker is elected. won hisl nadal has ninth french open. slam titles.nd he says this is the most important tournament of the year for him. >> a look now at how european markets are trading. >> they are on a bit of a winning streak as well. we've got records over in the united states with the s&p 500. nine of the markets are currently shot across europe. still feeling the warm breeze from the european central bank. the centralshing

banks hire. saying many going overweight. stocks driving higher. that appetite for risky assets also in the currencies. exports growing 7%, the biggest trade surplus in china in five years. imports, of course, on the downside. a little worried about domestic demand. but you pm demand and demand from hong kong and taiwan seem to be driving -- but european demand and demand from hong kong and taiwan seem to be driving exports higher. bit of a selloff happening in

the japanese yen. let's look at the bond markets. it is all about that and ecb affecting as well. spain, borrowing costs lower than the united states in the 10-year. currently at 2.6%, a record low. a 2.6% as states well, but it is slightly lower for spain. again, a record low in terms of borrowing costs for italy. the ecb also pumping money into the small-to-medium-size under --es means that there is enterprises means that there is still interest. in just 25 minutes, it is "surveillance" with tom keene. tom, what can we look forward to today? friday and report on

especially after the calm on the ecb on thursday. we have the markets moving forward. about the dow's 17,000 watch. the real loserd, in the united states is everyone taking over. they have an uber-like evaluation for connect zero. >> uber in london is much cheaper than the black cabs but more expensive than the all caps. the ftse close to its highest level. the market headline economic sense of is the spanish 10-year yield. what do you make of it? >> i would look at the yield movement as a dynamic of what is

going on in europe. we've got a stronger euro as well. it is a push back on demand for bonds at a place to put money. alberto gullo from. rbs has been very good on movement on the yields. . >> we had him on early this morning on "the pulse." coming up, elon musk betting big on britain. landlps the model s will the auto carmaker a foothold in the u.k. >> with the pic above a porsche and the stratus battery on the road, the tesla model s has been the king of green luxury cars. already 25,000 on the streets of the u.s.. so why are they tweaking with detection -- with perfection?

time ever, the steering wheel is on the right side of the car. inside, all the bells and whistles you would expect to find. full7-inch display, a ipad-size vision of google maps going, tracking my energy consumption, and they projected rain. voice control. it is a minor tweak for elon musk who is betting britain will be his top market in europe. be oneu.k. is likely to of our most significant markets, somewhere between 3, 4 or five, i would guess. if you order a car now, you would receive it in about four months. we are putting a lot of effort

into supercharge infrastructure. we want england covered by the end of this year and all of the british isles by the end of next year. so the infrastructure rollout is quite significant. we will be spending several tens of millions of dollars in the next year. >> it starts a 50,000 pounds. musk went to london to turn over the keys to the first five owners. among them, the best-selling author of "50 shades of grey." oxes. checks all the b >> musk hopes it will springboard tesla in other countries where people drive's on the left side of the road. charging the cars will still be a challenge without the infrastructure in place. newwhile, in britain, these supercharger stations may prove to be the key for tesla to make major new inroads.

>> i know you have driven one. it drives like a dream. >> they are fun to drive. >> zero to 60 in 4.6 seconds. eminiem forn't play you. >> i tried it with a british accent. [laughter] energy, we's new will follow electric cars with [indiscernible] the phone. you put in one of the first charging stations for electric cars. isn't it green is that we've now got elon musk saying that he sees the u.k. as important for him? is it the more the merrier or

doesn't not work like that? >> a few months ago, it did look like that. -- we reachedt out to tesla and said we have the infrastructure. we will show you what it is all about in britain and help you build them. more recently, that turned sour when tesla tried to go behind us and take those from us. the tesla supercharger network will compete with network?y's there are 10,000 electric cars already on the road in britain. three different charging standards and all of our network will power all of those 14 models from five manufacturers. works forcharger only tesla. we are happy to accommodate

them. >> and terms of getting to critical mass, how far away are we? are we entering a different phase where it will become competitive and that is why tesla has done what it has done? or do you think we are still a ways away from getting to cripple mass and therefore we shouldn't be acting like this? your sense of where we are in the evolution of this charging network. -- ithink deaths left think tesla deftly should be acting like this because we all want the same thing. manufacturersnese have in making them for a couple of years. there are 14 different models on the road in britain. they are still only 10,000 cars. but one of the big areas is the oftenng infrastructure, referred to as range anxiety. so we can see the electric highway four years ago in the ideas, if you have an electric car of any make, you can drive

the length and the breadth of britain powered by the wind in the sun and that is what we are delivering. numbere are a death -- a of different models in place. you have the hybrid with the combustion engine taking some of the drive. enginee a three-cylinder that acts as a sort of a generator on board the car. v's,ve got the pure e various incarnations of this story. how do you think it will develop from here? how do you think those competing styles are going to come together? ev is the waypure to go? >> lots of manufacturers are making cars with a 100 mile range. for a lot of people, it is a perfectly practical car. with a tesla, you have a ton of batteries in a 300-mile range but you would use it frequently.

it is a big battery that you don't use often or buy a car that is more appropriate for normal use. then you have these hardware's, which i think are really fantastic, the hybrid where the goes 01 speed and powers. >> obviously, you're competing with tesla on your electric highway versus their supercharger network. give us your thoughts on the car itself. you had a 750,000 pound electric vehicle, very cool looking. i believe it is called the nemesis. what do you think of the model s? could this really be a mainstream car? >> at that price, it can't be. it is a top-end car. it forms fantastically. i've -- i love the way it digitally enables. i think it's fantastic. looks wise, it is disappointing. it could have -- it looks more

like a slightly old-fashioned car. but it is a supercar. it does change the game and i think it will result in other manufacturers changing what they do. >> dale, a pleasure to have you on the program. up, president putin breaks his silence, why ukraine's leadership will show its goodwill and wisdom. road to rio, the teams have arrived in the fans are on their way. the world is ready for brazil 2014. but is brazil ready for the world? more on that next.

>> welcome back. the first peace talks between russia and ukraine are underway. to --t the think a envoy president putin, now that you have had this meeting with president harsha go and you met with president obama, how likely is a cease-fire in ukraine? what can you and will you do to achieve a cease-fire there? and how quickly do you think a cease-fire could be achieved? i think what needs to be done immediately as stop punitive operations in the southeast. this is the only way to create

conditions to start real negotiations. so far, no one has said anything to them. no one has proposed anything at all concrete. and people need to know how they are going to live, under what conditions in the parameters of the new constitution. there is no conversation about that. there have been arguments and debates in the frames of around cables between presidential candidates, but no one invited any representative from the southeast. that situation needs to be radically changed. the presidential elections ukraine is over. the fight is over. we need to move to substantive order to work with people. >> what are the odds that a

cease-fire can be achieved in ukraine? i think the ukrainian leadership will show its goodwill and wisdom. they have to immediately stop the military operation. immediately announce a cease-fire. there is no other way to create the conditions for negotiations. >> ryan joins us now. obviously, a lot of analysts are saying that went in bang is -- that putin is controlling things on the ground. do anything -- i specifically asked him what he would or could do to support the peace talks and bring about a cease-fire. and if you pay attention to what he said, it is all about what

the ukraine central government will do. this is exactly the kind of answer the u.s. or the european union and certainly the ukrainians will really like because he is saying you've got to do all this and nothing about what he's prepared to do. >> what did he say in the rest of the press conference? >> it was interesting because we were the only foreign news organization. it was all a kremlin pool. it was mostly about domestic stuff interestingly. isthis isn't featuring -- it in the news cycle but not the new cycle. >> within russia. that's right. they are more interested in the fact that he met leaders but he did not provide a whole lot of information. the actual story was that additional chair raising by the gas pump was the most important thing asked at that press conference. >> his popularity ratings are surging. stay tuned. we will be back with more in

two.

>> brazil has spent more than $11 billion to plan for the biggest sporting event on the planet. but with the kickoff of the world cup in three days, the city still isn't ready. say you are going to

brazil for the world cup. here is what you will see as soon as we step off the plane. expect some traffic on your way to the game. there,en you finally get a hardhat might come in handy. takes são paulo's $365 million stadium. it's 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 wasn't installed. outside, this was supposed to be a huge parking lot designed to hold dozens of buses. the inaugural match in may was barely able to accommodate a half-sized crowd. now imagine what will happen when they try to pack in twice as many people. it could be a security nightmare. >> some of the challenges of stadiums, the parking around the

stadiums, the uncertainty of where is it we will be able to go or not go. it's an uphill battle for all of us that have a responsibility for protecting these folks. >> the world cup is the biggest sporting event on the planet. so why isn't brazil ready? >> we are incompetent. everybody knows that. why should we have the world cup? but the countries now in a very deep situation. >> brazil spent 3.6 billion dolls to build and remodel cities. in 12 only three were delivered on time. the new terminal at são paulo's overcrowded airport will not be completed until after the world cup is over. and this airport innovation is

months behind schedule. even rio among brazil's tourism mecca, did little to fix the problems that lead to epic traffic jams. way up north in the amazon, there is a city closer to being ready for the flood of soccer fans, manaus, a jungle boomtown. here we are three weeks before the beginning of the world cup. how much work do you have left? manaus will hold one of the biggest matches of the world cup, england versus italy, on june 14. >> everybody knows it is very important for us. a poor city. we need to prove that we are manage great events.

that is what is really at stake, not whether they will come for the world cup, but whether they will come back. football fever is going to be there. it is going to be very hot, especially for that england-italy game. somebody said that the chances making a file went to 2%. i think those numbers are erroneous. as we had to coverage of the world cup. -- the have the former football team, an inverse relationship between the english economy and the prospects of the football team.

>> i admire his positive spin on that. that is it for "the pulse." tomorrow.you

>> this is "bloomberg surveillance." 17,000 watch.ow

well apple join the dow jones industrial average? i take uber. adam takes uber. can we get shares in the ipo? it is monday, june 9. joining me adam johnson. alix steel is in for scarlet fu. let's get to our monday brief. >> we will kick it off in asia. japan's economy growing faster than estimated in the first quarter. in china, the trade surplus almost doubled. they world is buying chinese products which suggests there is growth in the global economy. economic data here in the usa. earnings in the u.s. today, zilch. however, as you just pointed out, the rangers game 3 is tonight. they are down