>> insurgents in iaq. oil continues to climb. companyedical devices is buying at just shy of $43 billion. s-- gazprom'ath payment expires. >> we have technology with michael bloomberg and london mayor boris johnson. but exclusive conversation coming up later today.

>> hello, welcome. >> it has just come 7:00 here in london. warm welcome to the second hour. the deadline just expired. it was 10 a.m. moscow time this morning. we are watching this developing story. >> we're waiting to see if we get any announcement anytime. in any event they effectively tapatened to turn off the to ukraine if they haven't paid the 1.9 5 billion to partially cover their debt and agreed to a gas price for future deliveries. ukraine gets half its gas from

russia. the e.u. gets a third of its gas from russia, half of which rebels through ukraine. -- travels through ukraine. a sixth of the e.u. gas travels through ukraine. we have seen this before in 2006 and in 2009. in both cases they have disrupted gas supplies to western europe. definitely something to watch. thing is the two sides do have a little time to get through the summer. it's warm now so gas demand is lower. they have been stowing away gas. ande is a lot of gas western europe. ing from places like slovakia. the other thing ukrainians have going for them is their industrial production is very depressed, particularly because of the fighting in the east of the country.

that means in particular the chemic -- chemical plants are not working. clearly ukraine would like those , would like them to be part of the fold. crisis.iate this could go on for a couple months and ukraine would still have enough time in western europe would still have enough time to stockpile gas for the winter. if you take into account the fighting in the east of ukraine and the lack of resolution this is not helpful. >> tell us about the tuition on wasground. >> the idea there was going to be de-escalation. what we have seen is the single biggest loss of life with the downing of the military transport plane. 49 ukrainian soldiers killed in one track -- one strike. and we have tanks on the eastern side of the country.

alleges those came from russia. nato came out with photographic evidence of what appears to be staging in russia proper. t 64 is used by insurgents against ukrainian forces. even in kiev we had an attack on the embassy that got pretty nasty. if the goal is the escalation, we are not seeing it on the gas side and definitely not on the fighting side. >> the second maker of medical buy.es has agreed to they will pay $93.22 for covidien. the combined company will be called medtronic pic. this is a trend of u.s. companies moving outside the u.s. to countries like ireland

allowties like dublin to more cash held overseas. >> you were pointing out this isn't going to bring down their tax rate. the percentage is not going to be brought down by this. this enables them to use some of the money they had held in limbo overseas. instead of taking it back to the u.s. they were able to take it back to the business. ability tothem the use this money. we are seeing this across the medical sector. hospitals are cutting back on their supplier list. the supplier companies feel it is more important to be bigger so they are less likely to be chopped. >> i have been looking at my favorite. the mergers and acquisitions function. this is the fourth biggest deal of 2014.

this is a number i love. only three times in the last decade have they produced $1 trillion worth of deals. the last one was the second quarter of 2007. and was the peak for him may -- was the p. we are at levels equivalent to 2007. >> we will see what implication that has for continuation. hasill watch that. that been talked about as a potential icd target for medtron themselves. >> there have been two preceding deals. >> we will see if this makes further deals more likely or less likely.

gazprom is saying there is no madet to -- payments being in june. we're waiting to see whether aspirin would tell us ukraine had paid for anything or not. >> we knew they -- whether us they hadd tell paid anything or not. >> ukraine hasn't prepaid any of the gas for june. what they do not say is we are turning off the tap. what they have suggested so far -- said so far suggest they would. we are waiting for that. last night.ll apart the russians said $385 is our last price. that is $100 more than what ukraine was paying. it is about the average for you countries. the eu came by with the proposal were ukraine would pay between 300 85. the e.u. commissioner said russia rejected that proposal. the russians feel what they have offered is a fair price.

they say it's only fair they should get paid for the gas they have provided. they haven't gotten any of the 2 billion they are seeking for partial. you have the situation you have now. what we're waiting for is explicit evidence they are turning off the tap. if it does happen that would be the third time since 2006. it happened in 2006 for a few days. it happened in 2009 for a while. the big saving grace right now is it is warm. ukraine doesn't need any gas for heating. it does need gas for industrial uses. >> it's ok until september, isn't it? >> it's ok until september. western europe is awash in gas. they are sending russian gas east, which is interesting. the ukrainians themselves have been stockpiling gas.

come august and september everyone needs to start stockpiling. not just ukraine but western europe needs to start stockpiling for the winter. this is something that needs to be sorted out. >> details for the energy business. the company expected to make the bid with mitsubishi heavy industries. the board of lehman's was scheduled to meet yesterday to discuss the plan. caroline is in paris following the story. tell us what we know so far about this bid. a what we know so far is complex deal. gethave lehman's that would gas turbines and inject cash to reduce debt. on the other side you would have merging.ese companies they have turbines and the hydro asset business. mitsubishi could buy a 10% stake

. the french government could also get a steak currently held by greek. this theyond phase of would combine the real business. this could make sense in terms of resolving antitrust issues. at the same time, i'll strum -- toorom says the offer is complex and they were planning to separate this. the issuenot resolve of energy independence because the assets would go to a japanese company. >> what does this mean for ge's offer? om has one moment alst week -- until one week from now to approve. at the moment, ge's offer does

not include any deals with the train making business of lastr alstrom. it could be improved. you have the finance minister who said that both sides could improve their bids. the main concern of the french government would be whether siemens mitsubishi deal would create jobs. >> thanks, caroline. ♪ resurgence of the u.k. economy has taken many economists by surprise. according to a new study london's thriving tech hub has helped propel the turnaround. here with more on how the u.k. is taking on silicon valley is caroline hyde. surprising findings in this report.

>> in london 30% of all the new jobs created since 2009. 30% are from technology. technology is splitting into all sorts of rounds. you have retail, medicine. you have technology into hospitality. how you order your coffee. how you get on the bus. the u.k. is thriving. they have about three quarters of a million people working in technology. that is an 11% increase since 2009. that is far out stripping the pace of growth we have seen in the rest of the economy. it is also growing faster than new york. california. than this is an area they are managing to grow. the government has been fostering that growth. the silicon in

roundabout as it used to be called. there is a circle of having universities around. you have customers. you have add agencies. you have media companies that want to analyze the data. you have complementary industries. you have finance. you have capital firms. you have all these able to give money to the startups to help it grow. >> it's a big industry. where is it showing particular strength? >> interesting it used to be a gary is of growth. that is what -- big areas of growth. they have 34,000 workers. it is about half of what they have in california, but this is an area that is really improving. fintech is-

improving. none make is shaking up wealth management. 34,000 is bigger in those in new york. it is more people employed h than california. these are areas of growth. are how do we support this. how do you get more venture capital firms coming over? how do you manage dead spots? this is all about infrastructure investment as well. in the middlee is of my house. >> thank you very much. >> michael bloomberg in london. john will join us for an exclusive interview about technology. >> we will be talking to the bank chief economies.

more details when we come back. ♪

to countdown.ck >> 2014 will be a lost year for growth according to our next

guest. great to see you. thanks for coming to talk to us. ?hat does that mean what are the implications? year on a highhe note. bank of england indicated 2014 was going to be the year of recovery. is taken down. i think it will be difficult for the u.s. to get traction. the u.s. was seen as a star performer. the housing market is lagging behind. creating thatof are jobless numbers but not real jobs continues to be a problem. in europe the improvement happens in club med countries.

that happens as we see a significant slowdown in france, and increasingly germany is slowing down if you look at export numbers. for me 2014 is not going to be a recovery. i do think the second half will be the true recovery. european central bank is wasting our time. why? >> it's more of a structural way of looking at it. why would you want to supply more credit when there are no demand for credit? that is the crux of the problem in europe, that we don't have the demand for loans. at circulation of money is an all-time low. nonfinancial credit is trading at minus one, minus two, minus three percent. economyallow 80% of the

the sme, and the only way is by having a far more focused platform. back loaded the cents after 2016 the banks had to show up with some lending to smaller companies, so in other words put is a free, and 2016 ride. we continue to ignore the part of the economy which is exemplified greater in the u.k.. you create an enormous amount of jobs in the i.t. sector. , the lendingback in the u.k. has been the most targeted. i think it is the way it needs to go. to church ong sundays and praying the weather in england will bring in the world cup on mondays. >> a lot to take in. the pound has strengthened to

over 170 against the u.s. dollar for the first time since august of 2009. word you see the trajectory for the u.k. economy. where will we see the first hike? rate >> it's interesting because sterling has been a lever. you look back to every time the u.k. has slowed down. we see a significant direction of sterling. likewise, the u.k. seems to have very good micro growth and macro growth. it seems to be in a better place. the sterling will continue to outperform. it is somewhat cyclical. think it will somewhat deteriorate and become smaller. i think it's absolutely correct in terms of its valuation. does extremelyy

well. wewe must remind our viewers are talking football. you know your football. who is going to win? come on. >> i was make my prediction based on the little i do know about, which is economics, and i think brazil needed because it needs to show the world it can actually organize things. i think they need to show this social experiment will work. is russia and france. those three countries if there is anybody in the world who needs the world cup it is those countries. victorye the idea of riven by need. thank you. >> my need is great. cup inn't won the world

66 in my lifetime. i need to win. >> fighting between the iraqi government and insurgents in the north of the country destabilizes the markets. more on that when we come back.

>> welcome back. >> it is 7:25. muslim insurgents have captured

a large chunks of territory north of baghdad. >> the federal government is fighting back. they say they have killed 300 insurgents over the weekend. the fact remains the second largest city in the country by isis.ccupied we have just heard from the -- they have got 100,000 troops deployed on the frontline with the sunnis. he says they are in charge of that takes pipeline oil from the north of the country to the mediterranean but he also says the insurgents control part of that. that's one reason the merchants are spooked by this. he says they control oil.

oil is pretty much in play. expect a repeat of what we saw last week. >> thank you. >> we will take a short break. online videoss and companies that reduce them when we come back. -- produce them when we come back. ♪

>> welcome back. let's head out to manus cranny for the fx check. >> we have managed to do it with dollars sterling. it is the first time since 2009 above oneeing a level dollar 70. the market delivered. survey, the u.k. has reached its velocity.

i am being over facetious. economists are catching up with the market. that is dollars sterling. in terms of euros sterling you have the big technical this is dropping for nine straight days in a row. we have not seen a run in losses of the euro against sterling since 2009. the technical indicators say this pair is oversold. the relative strength indicator says this currently is oversold. if you want to know where money is going in terms of risk, it is going into the end. we see the euro yen hit near a four-month high. cpa data.it for the >> these are the top headlines. hassunni extremist group posted graphic photos online.

they appear to show its fighters executing iraqi soldiers. haven't been independently confirmed. anoraks army says they have killed nearly 300 terrorists. hundreds of ukrainians gather in kiev's victory square. they are mourning the plane shot down by pro-russian separatists. 49 people were killed. president poroshenko has vowed to retaliate. as london's technology week kicks off, bloomberg has yet to report. employs moreeen workers. there are more people working in the tech sector in london and the surrounding region than all of california. or is johnson says it is his mission to make london the tech capital of the world. -- or is johnson says it is his mission to make london the tech capital of the world. for anor will join us exclusive conversation about technology.

>> have you ever heard of mad take? -- tech? is next guest says london perfect for the sector. let's talk to the ceo and cofounder. thanks for coming in. you make videos. them famous. none of this happens by accident. >> absolutely right. people think somehow videos just go viral. this doesn't happen this way. the content is carefully crafted to emotional triggers. then you have a smart distribution strategy to amplify that and make sure as many people as possible as fast as possible. you have to be quick if you want people sharing. >> insurability is the key. lity is the key.

who are these super sharers? were they tend to be younger. older people might share via e-mail. young people might share via snapchat. it is nothing new. 90% continues to happen off-line, when we talk to each other about videos. what brands have done is harnessed that word of mouth. talke want to share and about it. that way they can drive awareness. >> you are based here in london. you are growing globally. as you go abroad and say, we are a technology based in london? does the reception change? the report says there is great growth of the technology

industry. >> we have seen great growth. we are in asia-pacific, singapore. say, we are in london. they used to say, very nice. now they say, you mean tech city . the government has done a good job of raising the profile of the british tech industries overseas. >> and we have the report in conjunction with boston media group which talks about some challenges. you need to keep nurturing talent. the funding process is very important. what other challenges does london have? key challenge. it's fiercely competitive. he have london university. we have cambridge, oxford. as the sector grows and the need workers grows.

>> are they producing the wrong type of talent? how they justt can't find ready to go talent oming from u.k. universities. >> that's absolutely the case. we are keen to hire homegrown talent. we work with lots of universities to bring in talent, but we do find a lot of training on the job. universities are trying to address this. company inup the 2006. a lot has changed. look into your crystal ball. next 8, 9, 10 years, how do you think the tech industry will change? >> i am seeing a change to scale up. what we need to see now and what we are already seeing is a shift

to the scale up. these companies are really maturing. we want to see lots more billion-dollar ipos on the london stock exchange. >> thank you for joining us. forget boris johnson will join us for an exclusive conversation about technology. you won't want to miss that. >> inferences go is home to the biggest tech companies in the hottest startups. why did -- san francisco is home to the biggest tech companies and the hottest startups, so will why did this company want to leave? >> san francisco, home to some of the most creative companies. it is even outpacing job growth in silicon valley. it is the place to be. why do these guys head in the other direction? >> the city is beautiful.

all the buildings here are older than our home country. it's breathtaking to take a walk down the street. >> they are preparing for a big pub on aitch in a tuesday afternoon. that's just one of the perks of living in london. as they see it, the people are supportive. >> london has a strong start up community. that is proven to be true. anyone we have met here have proven to be helpful. >> they are born and bred san franciscans. their company helps small businesses find the white -- the right to follow it and engage with them. >> we help music artists and bands and music agencies and help them grow their social media following, to give them specific actions that would give them more followers. >> the pair worked at google and yahoo! before setting out on

their own. they were in talks with u.s. investors, who tried hard to keep them in america. but they saw the potential of london. >> hawkins runs digital media, and she has been extremely helpful in making the right introductions, giving us the right advice. she is in london and not san francisco. >> six weeks in, and it's all going well. what about the future? will the summer fling turn into something more lasting? >> they don't think that far ahead. in london will stay for a while. there's not a specific need to move back unless there are key clients. 7:39 here in london.

i am getting ready for "on the move." for wealth is selling the world cup football ticket. the most expensive tickets on sale for 25,000 dollars. we will have more on the business of reselling tickets for sporting even. that is next.

>> welcome to countdown. the time in london is 7:40. everyone dreams of attending a world cup final, but when it comes down to it, how much is a fan willing to pay? the service allows people to resell tickets. we are joined by the head of operations for more on the business of reselling world cup tickets. this is something i wasn't aware of. for those in the u.k., you are not allowed to resell world cup , arets on your website you? >> that's right. every country is a little different. outside of the u.k. you can buy and sell football tickets as

much as you would like. in the u.k. there are some restrictions. >> you have done some wonderful research sewing -- showing the are said to joe fans in the country who have searched for world cup tickets, and some of the result are incredible. and uruguay a third of the population has surged. chile is in far behind. >> it really is a latin american and south american world cup. i huge demand for countries like uruguay, chile, mexico, colombia. ofignificant percentage people in the u.s. are searching for tickets. even though it is a huge country , it's not necessarily the largest soccer country. produce the will most expensive ticket. how much are tickets going for the final? >> we have seen as low as $20 right up to the final, which are

reselling at around 3000 or $4000 a ticket. fax that before knowing who is going to be in the final. >> that's what we see as the tournament progress. people across the world are looking into how their team is doing and will make a late decision to buy. in the old days you would have to the stadium. you know the hotel is going to be there. >> is there a final that would produce the biggest resale value ? brazil and argentina? do you think it would have to be a latin american final? >> seeing as how the world cup is going i think the brazil argentina final would create the most interest. >> we are $20,000 now. by the time we get to the final, what could we be? >> it could be a record breaker. i think it would be north of 20,000. matches youthe

could buy for tens of dollars? >> it seems like iran, nigeria, bosnia have been less expensive. have beeneekend there some real upset with costa rica. anything could happen. we really could see prices change dramatically. >> what happens to spain lost to holland? do demand go up? >> we saw huge amounts of surges immediately coming from the netherlands looking for tickets. i think that's the important thing about the service we provide. you still can get a ticket and still be there. get veryeen chile excited about the match this coming wednesday. there is still opportunity to be there. you can still get tickets.

>> if you wanted to buy england tickets you could buy them in another country. >> customers from all around the world could buy them. >> what are they selling for? >> they are probably the 500 or $700 mark. >> that is essentially a knockout game. would you anticipate crisis would rise-- prices ahead of thursday? >> i think they will be pretty stable, but there is a lot of interest in that game. >> outside of football, i clicked on the wimbledon page and looked at tickets for the wimbledon final. they are going for roughly 4000? >> the wimbledon final is always a popular event. we like to offer you any of the entity where in the world. theledon finals is one of top selling. they can go up to several

thousand dollars per ticket. >> what happened last year with andy murray winning for the first time in decades? steadily the price rise throughout the tournament. once we got into the final paying people were $5,000 to $10,000, even more for a ticket. for many people that is a once-in-a-lifetime experience to see a british player win. max tickets always become available for whatever event? at the right time and the right price, do you think you can always buy a ticket? >> absolutely. s,r the really popular event for those events where there are lots of tickets and a huge demand globally, there is always someone willing to resale at ticket. in many cases we can get you a ticket right up until kickoff, even afterwards. >> what do you say to the people

who criticize the whole system of being able to resale tickets? people i them to sell them as a business. out because loses of having to pay three or four times the price of the original you say to that criticism? >> we haven't invented the reselling of tickets. people have been reselling tickets since the gladiators in rome i suspect. we have presented a platform to sell tickets. instead of an online auction give you a guaranteed service. if you buy a ticket we guarantee you get what you pay for an time for the event. if anything goes wrong you have got recourse. i think what is important is the security and the guarantee. sellers in our marketplace.

it's very competitive. people get a fair price at the time. >> what particular event you want to be at in 2014? >> if it weren't for my young baby i would he in brazil right now. certainly some of the big festivals over the summer. there are a lot of big festivals i would probably be at. we are starting to get excited about rugby again. england has got a chance? theare you feeling after loss against italy? >> i think it was very positive about the performance and the fact there wasn't england team that had a good chance. chance england will be in the knockout stage. they is plenty of hope will see england progress. >> thank you for coming on. after the break minutes to go

until the market open. i will check what will be driving the first day of trading this >> welcome back.

we are seven minutes from the start of the equities session. big theme.

>> that is the absolute theme. were that progresses is a moot point. ecb cuttingout the rates? and the price of oil. let's have a look at equities futures. they are lower. at data board we are looking is consumer price index. >> which could show 1.5% for the eurozone? ispushing the agenda, which quantitative easing. but have a look at dollar yen, gold. brent is rising. with energy prices, what is the biggest single risk to global

recovery? it's energy. it comes out of our pockets and comes out of industry to drive industry. it's a big risk. >> you were saying how volatility within the oil market was at a record low. is a ripple effect. >> it has spiked higher. it ratcheted. classes are not volatile at all. they are at record lows. >> they are indeed. is nirvana. i want to show you some of the middle east markets. near-term contagion in dubai, iraq and qatar. dubai moving to an emerging market. quickly.an very

>> jpmorgan i have got 20 seconds to spare. if they go along because the risk reward has improved. valuations are the lowest since 2003. >> on the move is next. a new twisty take today. on the move is next. see you tomorrow.

>> welcome to "on the move your ." we are moments away from the start of trading. escalating violence in iraq rattles investors. here with us now, ryan and caroline. brian, let's start with you. >> the iraqi government is fighting back. they say they have killed 300 militants. a still hold the northern cities of mosul and tikrit. oil is on the agenda. i will talk about what it means for the oil market and beyond. over to you. >> siemens is finally due to

make a formal bid today. it is teaming up with it to pay she and hitachi -- with mitsubishi and hitachi. i will tell you more in a moment. >> that is what we are watching this morning. european markets are just our markets editor manus cranny is going to be walking us through the start of the trading day. we are expecting european markets to open weaker than normal. three dominant forces. one the political risk in iraq. equity markets are opening weaker. it is a risk of mental aptitude from traders. these are the forces. they are beginning to open in europe.

paris and france are also lower. europeconsumer prices in today. money is coming out of risk assets. the move.of oil is on gold at a three-week high. moving into yen. big n is moving higher against all three major currencies. they will make it up to $116. supply is still flowing. let's have a look at the middle eastern markets. this is where near-term contagion is coming through. you saw dubai down nearly five percent yesterday. we don't actually have those graphics for you. what should you do for the ?uropean

they say the top market is italy and spain followed by the dax. they say you should buy the dax relative to the stoxx 50. why? multitudes are the cheapest since 2003. the dax is a huge place for them on emerging market recovery along with china improvement. some companies -- in case you forgot what we do everyday, it is about companies. siemens, mitsubishi -- my pronunciation was never perfect. what have they pulled out of the bag? the men's going higher. smith and nephew off two and a half percent. they have been a longtime bigulated for some of the

players in the industry group. i will leave it for you and go work on my pronunciation of some of the japanese players. >> we all have work to do on that front. let's get back to the geopolitical backdrop of today's trade. conflict in iraq. government forces pummeled positions of sunni insurgents who have captured large tubs of territory north of baghdad. brian has more. >> the racket government is fighting back. they say they have killed up to 300 militants. the insurgents control large swaths in the north of the country, including the northern cities of mosul and tikrit, which is the former home of the saddam hussein. they also control at least part of the pipeline that goes from the oil fields to the turkish port city from which it is escorted -- escorted onto ships. meanwhile the kurds filled some

of the vacuum in the northwind iraqi ships fled. they say they took control of the oil fields. over the weekend we have seen zero change when it comes to the physical supply picture for crude, yet the oil market is very much in play today. wg i up half a percent. the market is still very jittery. >> that is moving the oil price of course. i know you are also covering the latest developments out of russia and the ukraine. we have considerable news surrounding that story this morning, haven't we? >> russes deadline for ukraine to pay $2 billion of debt expired at 7 a.m. london time,

so about an hour ago, russia tos it will provide gas ukraine that ukraine has already paid for and says if ukraine wants to buy gas in the future 85y have to do it at 300 dollars. the european union was trying to broker a deal between russia and ukraine. the european union says russia rejected its proposal of a price range between $300 and 385. here is the big question. has russia turned off the tap to ukraine and as a result to western europe. the answer is we just don't know. supplies areas continuing as usual. from gashe ceo of gas gas problem is meeting with president putin. foure expecting at 11:30 press conference.

we will learn what the russian president has decided to do. orl he turn off the gas pump not? >> the latest on a rack and tensions over russia and ukraine. joining us is the strategist with ubs wealth strategy. as we look at the start of have got theg, we violence continuing in iraq. we have tensions between russia and ukraine in the energy market. how do you see the week unfolding from here? >> we have a couple of these issues coming up. the oil is still flowing. these risks are out there. it comes in the context of a market which has had low volatility. we will be keeping a close eye on these risks. onare only keeping an eye

these markets with more impact. we get more concerns at the big picture level in places like the u.s. and the eurozone. increaseo see if they to $130 a barrel. >> d.c. volatility coming back into markets? do you see volatility coming back into markets? >> it has been very low. we are not seeing the potential for a major spike. typically volatility tends to be very low when there is little going on. there is not much going on on the economic level. markets have been very calm. they are moving .3% per day in the past month. markets have been very calm. >> inc. you. stay with us. more from him a little later in

the show. the 42 billion dollar deal. we will tell you about the medical device that is bringing big business. .ore on siemens and alstrom we will get more on the potential deal when we return.

>> i am an edwards and london. this is on the move.

here are the stocks on the move. the drug business. one of their experimental drugs against a rare lung disease met the goals, potentially giving away to compete with rival united therapeutics corp.. their drugsws on trial has spent about stock up -- has sent the stock up. tech week has kicked off in london. we are focusing on european futures. our next guest says the future is in tech. to talk toor coming us. we are focused on london. around this.g describe to me how you think london has evolved in recent years.

she said in the last two years you can really feel the change. >> britain has become a digital powerhouse. it centers on london. 27% of all job growth out of the last recession came from tech and digital businesses. starts today. there are 200 events across the capital. walk in and have a ticket and see what is happening in technology across the country. >> the growth rate for london, the sheer number of people employed in london in the southeast and technology industries, but how do we define technology? are we truly reflecting a traditional definition? we brought in that definition? >> technology and digital are pervasive across all

organizations. britain had a string historically and financial services. it is one of the leading sectors growing. it makes a lot of sense because of the core capability and investment made here. the investment is coming into london. we are leading the world in that . the study that came out this morning said that we are the fastest-growing in the world. it also said there are a number of challenges that lie ahead. try tore challenges to maintain that growth. what do you is the most important? she said it is really about getting the most talent. >> the most encouraging i have heard is the study for young of 18 between the ages and 20. 80% of them would like to start a business.

in past generations everybody thought about which large company should i work for. hiringt they are not people, young people have seen overnight.global they are seeing other people across the globe we successful. he is 16 years old and selling his company to ya ho -- to yahoo!. you people are starting to believe they can do that, to. that is what will really transform the london economy. >> you also need people who come out of university with relative skills in science, engineering, and math. you need to create it so they will go into those jobs. typically over the last 10 years more money has been made. >> alongside the extensive package for entrepreneurs and investors government has put forward, the other thing that is happening is as of september, curriculum will be encoding as a

compulsory subject. not just the gentle skill. industriesnsformed and how we interact with government. it's important that people understand and have the skills to thrive and grow in the future. >> let's talk about funding to technology business as well. it seems it is one thing to fund .he startup level of this mess it's another to keep funding through to larger businesses. do you see it as worrying that we don't have so many big-name technology companies actually listing in london? i know he was saying that he thought it was a vicious cycle, and negative vicious cycle that if you don't have companies here, then the analytical expertise to enable investors to decide whether to invest in them doesn't get created. that isn't sustained, and it means people don't know which

tech companies to invest in in london. that would be extreme, but he was saying that is a risk. >> about 18 months ago we started working with the london stock exchange, and we looked at that problem. i have a much more optimistic view. we lost something called the future 50. these are 50 fast-growing businesses that have the list in 18 months. we have been working in a concierge service. whatever they need in government. we take them on business trips with the prime minister to china, to india, to israel, whatever they need to help them grow their business, the government supports them. we want to see them cross the line and have this liquidity event. three have already listed on the london stock exchange. .e have horizon, discovery, ao all of them are really doing well. theee a number of others in pipeline. it's really important we support

these types of his disses. they are the engine of growth and job creation. >> it's interesting you mention these because they illustrate how the market is getting into all parts of the business world. you have a company that sells food online. you have a company and appliance retail. others might call them retailers, but we call them technology business. >> at the heart of all these businesses is the technology platform. we are the leaders of e-commerce in the u.k. people don't realize that compared to other g-20 nations it is the highest in the world. 10% of our gdp will be contributed -- attributed to the internet economy by 2015. that's the largest in the world. that makes of the most digital economy. >> what are other things they point out is the infrastructure. i was interested to read about this. i haven't heard this much

discussed. the availability of office space. i was amazed to find there was a shortage of office space in london or certainly the type growing staff wants to take on. >> i consider this a good problem. crunch youving tech are going to have people having difficulty finding the right location and finding it for the right price. what is happening across london, this tech movement is broad and across the entire capital. there are 45 startups. silver key, the over there there are a number of startups. you have got croydon coming on strong. there are pockets in covent garden. it's all over london. it's really extraordinary. it's not just about the silicon roundabout, although that is the nucleus of this movement. >> it's really overwhelming when you stand on the roundabout itself.

>> i started my career in silicon valley in the 80's. we made san francisco. the market was very similar to this area. -- yound of that gritty have the optimism around that like we can do anything from here. it's really a positive feeling. tech week starts today. i hope people will come and attend all the events and really participate and be proud that meetingand london are this new economy. >> thanks for joining us. don't miss our exclusive conversation between mike bloomberg and mayor boris johnson on the fate of tech in the u.k. we will bring that for you in the next hour. we are back in two just two minutes. ♪

>> welcome back. still with us for his views on the top market stories, the joins uset strategist from switzerland. thanks for sticking with us. a lot of m&a and the markets. buying anu.s. company irish business partly because of operational reasons. partly because of tax

incentives. are you looking at that with interest? are you looking for more m&a there? morertainly we are seeing within the farmer sector. we are looking at the scenario .here we see pocket of value in the biotech space. we see pockets of value in the oncology space. i think the trend we are getting with him in a very encouraging. it's a sign companies are finally starting to deploy their cash from him in a first. we are invest in their own businesses. >> what kind of timescale do you think equities are going to continue to outperform? i know outperformance is part of your key investment energy at the moment. what kind of timing scale are you looking at? >> we invest over a six month timeframe.

looking for we are the equities to be delivering returns of around four percent in the six month timeframe and for government bonds to be two point one percent. even over the longer-term bond yields are still incredibly low. we would say equities are still a better place to be for the long run. >> nothing that suggests to you we're going to see her correction in the second half of this year? clearly they are tighter growth. if we look at the u.s. they are about two and a half percent growth. the consensus is between two percent or three percent. if we get any surprises to that consensus there would be a risk. we think the markets are relatively calm at the moment and things are developing pretty much as expected. week.y meet this

the expectation is we are going to see a continuation of the tapering, so styling back on the stimulus. what are your thoughts? see theuld expect to taper coming through. that should be negative for the bond market and positive for the u.s. dollar. i think what is key is we looked at the projections of what the fed members think rates are going to be at. there has been a lot of focus in recent months. the bond of the reason markets have been so strong. forecasting long-term interest rates to be negative. >> what are your expectations for the u.k.? what will we start to see rates rise here? they have wrought their expectation to november of 2014. what do you expect?

the u.k. economy is doing better than the football team at the moment. doingonomy is particularly well at the moment. after mark carney's speech the market is looking at rate hikes to the end of the year. we think that is looking more likely than it did, given the way unemployment has developed in the u.k. it does appear to be sustaining. we are sticking with our overweight position in the british pound as a result. said about the football on saturday night, the better. still to come on the program, we will continue the conversation. the men'suest calls joint bid for mitsubishi a smart trick that still believes ge has the stronger offer.

we will explain that coming up next. me on twitter. see you on the other side of a short rate. -- break. ♪

>> welcome back to "on the move ."ur qu the spanish market down by .4%. manus cranny is here to talk us through a few of the individual stocks. >> we have three stocks on the move this morning. met the nephew -- smith and

nephew. we know stryker walked away from making a bid for smith and nephew. we have recovered some of the grinds. actelion, it looks like one other late stage drugs has gone better in testing the market presumed. jose says it is worth three quarters of a billion dollars in -- deutsche bank says it is worth three quarters of a billion dollars in revenue. what is the next up for b-sky-b? sunday times ran this story on the price tag would be around 3.5 billion euros for skype which land -- skied which land. sky deutsche land.n

you show youbefore these stories, the following finds, some people might them disturbing. the sunni extremist group which is taken territories across iraq has posted ethic photos online. -- has posted graphic photos online. rock bus army says it has killed 300 terrorists -- iraq's army says it has killed 300 terrorists. the russian state-owned energy company announced its decision this morning after overnight talks to resolve a pricing dispute ended without a deal. ukraine owes the company fort $.5 billion. -- $4.5 billion. -- tronic is buying covidien

medtronic is buying covidien. it is the largest deal ever for medtronic and gives the u.s. company access to the portfolio of hospital supplies. moving on to another of our top stories. a new twist in the battle for alstrom's assets. caroline has been walking us through the details of how the company would divide up responsibilities. christopher joins us from paris. we do need your help this morning, christopher, because it is a very complicated deal. >> good morning. it is getting more messy. ist we expect from siemens due an offer and you deal today.

offer a new deal today. from what we know, siemens would like to buy energy assets of alstom, but only regarding the gas turbine. mighting mitsubishi, they by 10% shares of alstom. messy, but wevery will know in the next hour. >> what do we know about the government's involvement? what is the french government doing on the sidelines? you might be very surprised. the minister is strongly supporting a deal between siemens and alstom.

the weekendng over with siemens and mitsubishi on a deal without concluding -- including alstom, which is a bizarre way to do business. but let's talk about where this with -- >> let's talk about where this would beat if we saw a deal with siemens, where this .ould lead ge are we going to see ge come back to the table? ge to come back to the table with something more. what we expect is something simple. it might be a tarp -- a partnership regarding energy grade business with other french companies. more, bute something

already, ge has made many compromises to please the french government. will import jobs and most of the business will stay in france . ge is a strong partner and it has been for more than 100 years. i do not think it will lose this deal. >> the french government has on -- with siemens and japanese partners on a deal here, christopher. what do we know what alstrom wants to get out of this? will would be best for the board? -- alstom >> nothing new regarding the alstom board. the ceo is strongly supporting ge's bid.

i think he had only one phone call last week with mitsubishi ceo and i did not talk much about the deal. only purpose is to reach an agreement with ge. ge will win this battle. it is obvious for me. >> what is the timescale on all of this? have a formal offer from siemens on mitsubishi. france ceo will go to and will meet with parliament. geexpect upper management of and mitsubishi will meet in france. the deadline for the deal is next week, the 23rd. we should expect alstrom --

alstom will make an agreement with ge. ask thank you for -- >> thank you for joining us. thehes in iraq drive up price of oil. we will put the latest violence into context and weigh the impact on energy prices. ♪

>> i am anna edwards. forces crackedt down on the sunni militants who took much of the country's northern region last week. fears of instability have sent big waves through oil markets. for more on all of this, i am joined by jason as well as ryan chilcote. ryan, perhaps you can bring us up to speed. >> the latest is the iraqi government is pushing back on the militants. we have the militants still in --trol of the second busiest

second biggest city in iraq as well as in control of part of the pipeline. much physically in terms of oil, the very same situation. we have seen markets remain jittery this morning, both brent and wti on the move. we can anticipate throughout the week really. people watch the rock for clues -- iraq for clues. the market needs the oil and there are not a whole lot of places that can provide replacement to it. >> ryan, stay with us. let's bring in jason. a very fast-moving situation. what is your view? premium is going to

continue to escalate over the course of this week. we already had a very strong fundamental oil market, and now we have introduced another risk element into it. >> ryan, jump in here. >> if we have not seen since the end of last week any kind of change when it comes to physical , the actual oil supply out of , the situation is exactly how it was. the north output was already somewhat subdued and it remains somewhat subdued. in the south, there is no change to the export picture. why should the price of oil move? >> i think you are correct that there is no real threat to him and it supplies. the capacity in the system is very constrained.

i think when you are introducing the element that you could see iraq go off-line, you are cut short in the market. >> are you looking to whether we get any western involvement in this current insurgency as a sign that tensions might spill over into oil markets? is that not going to be the critical factor. >> western involvement is something that could cause things to change rapidly. in that regard, it could be an important factor. the u.s. and iran are both talking about intervening cooperatively and that could take the risk premium down. >> we are watching sanctions negotiations taking place around that country. are you expecting any material changes? significant pretty deadline, july 11, i believe. it is about 50-50 that there

will be an agreement or not. relief of iranian sanctions would put barrels of oil back into the market. thehat do you expect saudi's to do next? we have heard the will minister from saudi arabia say he is comfortable summer between 95 and -- somewhere between $95 and $110. do you expect the saudi's to start opening the tap? people are going to start getting jittery about the world economy. >> the only problem right now is the saudi response is going to be limited by what is needed in the physical market. even that iraq is still producing. i think you will see the saudi's

take it to the asian markets to provide some relief. the saudi's do not have that much influence in the near-term. >> let's talk about another area of geopolitical conflict, russia and ukraine. russia has said they will decide about whether to cut ukrainian gas supplies later today. it seems the russians want now.ne to pay in advance is this going to be something that comes back to the floor and markets? -- in markets? >> the natural gas markets are the markets to be watching right now. in regards to russia and ukraine. the price in the u.k. is that a 40 month -- 48 month low. that couldething

change for a quickly if the ukrainian situation where to escalate. -- change very quickly if the ukrainian situation were to escalate. >> they have called on the ukrainians to keep the flow of gas flowing to the eu. >> there are a lot of unknowns. situation ininable the near-term, but that is something that could change pretty quickly given that russia is supplying 30% of western europe's gas. the daysr we away from when everybody talks about the price for both being too high and a hindrance to global growth? >> we are probably already there with oil. with natural gas, europe is experiencing very low prices. it would take a significant moving gas prices before that would arise. oil is going to be the predominant point of discussion.

focus.equity is your how are oil companies coping were benefiting? -- coping were benefiting? >> they are price takers and their revenues clearly benefit when oil prices go up. i do not think we will see any strategic change on the part of companies like bp and shell. >> jason, thank you very much for joining us. ryan, thank you duis well. here are -- thank you to you as well. the second-largest maker of medical devices agreed to by covidien for $42.9 billion. it is the largest ever deal for medtronic. the experimental drug against

lung disease, the main goal of the study, gives the drugmaker medicine that may garner annual sales of as much as 2 billion swiss francs. to apply for regulatory approval as soon as possible for the drug. bnp paribas is close to signing an agreement with the u.s.. the bank is nearing a deal that includes $8 billion fine. they would be required to acknowledge culpability in the alleged sanctions violations. coming up, driving school that top executives top billing behind the wheel. ♪

>> welcome back. it takes a certain amount of street credit to be an auto executive. audi takes that literally and holdsure its chief can' their own on the track. he shows matt miller what a tough day at the office looks like. it is not everyday you get to

race around the track with the head of a major automaker. today i am doing just that. to ensure that executives are selling cars they can vouch for, audi requires them to get out and get behind the wheel. >> one of the interesting things that audi does, the board members go around the world and drive the cars and they do this throughout the year. as an executive, you have to get an audi drivers license. believe me, it is a rigorous .est at an airstrip in germany for career salvation, you definitely want to pass the test. the r8. we launched could we create a home for this car?

country andound the one of the first places you land on is here in sonoma. we noticed how technical the track was, absolutely perfect. they are a natural extension for a brand that has built a name in racing. they have more titles than any other brand except for shot -- porsche. >> a lot of cars and a lot of tracks can go fast. can you make a fundamentally sound car? >> how key is this kind of program to marketing? it is important to keep a closer relationship with the customer after the point-of-sale. >> you can run an ad campaign and talk about the greatness, but the greatness is getting it out on the track. and they areionate

enthusiasts. >> i wonder about the conversion rate. .> extremely high but it all comes down to selling cars, but you might as well have a good time while you are at it. >> all of the business reports, all of the power points. you also have to have a heck of a fun business. >> i do not know about the audi executives, but matt miller gets all of the top postings. some of the stocks we are watching this morning. smith and nephew on the move. a swiss drug company, one of their experimental drugs has received some good news and that is being seen as a positive by investors. that stock is up by 14%. potentially giving the drugmaker

a pill that may garner annual sales of as much as 2 billion swiss francs. nephew also on the move, that stock down by 2.3%. medtronic is buying covidien. it is a dublin-based u.s. listed medical devices business. reason smith and nephew is moving lower because of medtronic is buying covidien, is it less likely they will go after other potential targets in europe? trade taking a little bit of the edge off the ftse 100 . that is fairly flat compared to the other european benchmarks. the dax down by .3%. stay with bloomberg television. guy johnson and olivia sterns

are back with "the pulse." ♪

>> and insurgency in iraq. oil continues to climb in price. >> medtronic buys covidien. >> logging on to london, it is tech week. we bring you an exclusive conversation between oris johnson and michael bloomberg. good morning. welcome. you are watching "the pulse