the moment of truth. a test of european power. the ministers are gathering to discuss another round against russia. how tough are they really going to be? i will be in brussels all day and breaking news as it happens. over to you. >> thanks for that. here in zürich, the biggest loss of credit suisse since 2008. despite the litigation, money roles in and beats estimates. do? brady dougan will we'll talk about that shortly. >> thanks. designs are used and 95% of all mobile phones. new connected devices. i think thermostats and smart watches. are easing off

as our insatiable appetite for the latest smart phone. a little bit later. >> thank you very much, caroline. european markets are opening at the moment. features are opening higher and are expected to go higher. go atpi is expected to 2%. that has been a big one. .anet yellen's concern when issue going to start lifting cpi? her third reading. everybody and in the market is talking about inflation repressed and. it can be the message that the rates stay low. the ftse is up. cac 40 is out. we will get another read. you are looking at the eye banks

in spain. pain.aqs -- ipex in s the big focus for the market is probably going to be very different. u.k.could come at 1:30 time. that is u.s. inflation. the market is very sensitive. us is a man i know well, a member of the investment committee. he helps to oversee 50 billion euros in assets. welcome to the show. always a privilege to have you here. when you look at the market and you see the lack of reaction to jill our tix, how do you set up -- and geopolitics, how do you up? >> you have the russian and ukrainian situation. than 10% of the size of the u.s. and european economy and also when you look at

sanctions that can be taken, we have to take into account the relationships between russia is rather limited. very focused. oil and gas, sell we know we need to buy the oil and gas. and in the end, there could be ratherences that can be limited. >> we see in the yuan came -- and the u.k. and the ban. we see an order for a warships. even after what happened last week, is the conclusion that economics triumph everything? >> they are absolutely crucial. you get a sitter -- you get a greater sense in europe you cannot continue on. we need to put some backstop to what is happening in the ukraine. i would say some kind of judgment but just because the

situation is becoming a bit uncontrollable. i think that goes away. russia wased because relatively quiet. you can say this plane crash is actually russia -- [indiscernible] >> there is that if you add the lease. we do not see any heightened sanctions today. -- there is that view at the least. -- we do not see any heightened sanctions today. what is the likely we will see it as collates? -- escalate? does it take in the game out of your hands? we are talking about things that are different. what is happening in the middle east is related to culture.

we see in israel and palestine. happen in theld neighboring countries. so far is a bit more stable. back to your point of geopolitics, it is very unfortunate when you are investing globally to take a different look. with regard to geopolitics but also with regard to opportunities. the election of mr. moody in india. the election in indonesia. and cannot be a game changer. and also witnessing what is happening in brazil. you have this correlation between the brazilian market and others. will be a very important factor to invest. >> what is taking away from

emerging markets and go into debt? you hold portuguese debt, how concerned are you about event's? >> what we have seen is reassurance. what we are facing here is not to thed of crisis linked financial crisis. what we haveaside, seen is the new resolution. the new regulation. of the banking sector. very little contingent to the credit markets for financial institutions. also the sovereign market. 40 basis points higher on the 10 year.

down.have moved back >> the question i would ask is does the market understand what you can see it happening? hold ayou are going to debt like portuguese debt, how strong does your stomach needed to be? >> in every case, you need to have a strong stomach. you need to be brave and have courage to stick to your position of the custom that is how you make money. it is very clear the initial reaction is a question of if something is bigger. when you compare the markets' reaction, compared to what we you see alls ago, the progress we have made in the eurozone in terms of breaking the initial slink. you will stayn, with us.

always a privilege. company,ing ceo of the in thewill join us later show with their numbers. i will be back in a couple of minutes time. ♪

>> welcome to "on the move." i am jonathan ferro. we are streaming live on your television and absolutely everything.

one stock we are talking about is arm holding, the chip designer. you probably have it in something you carry almost every day. fifth straight quarter, licensing growth was very strong. investors are checking. arm holdings is down 0.5%. who else can speak about this company and talk about the report is simon segars, the ceo of the company. welcome, simon. when we look at the last quarter, what are the big winds? licensing growth, where is it coming from? >> building on a strong start. and a strong licensee. one of the standouts as the number of licensed deals for the quarter. the second best we have ever

done. it is across a broad range of technology. customers are continuing to commit to arm. we are brand-new products. it is an investment in the future. seem revenue growth 2% -- we have seen revenue growth 2%. what is going to drive the growth? >> e year over year, 2%. driven by a number of things. very strong performance. we expected that. impactedve seen through supply chain management. for what was sent to our customers and the markets, this is is going to pick up in the second half as we expected. we believe that has been happening in our customers'q,

too. we have maintained our guidance for the year and expect to see more and the second half. >> any investor will be thinking that the licensing growth, i am happy about it. then we look at the overall growth, what is the lag time? >> it can vary. typically, we think about 2-3 year period. -- oft going into bridger that going into production. are driving future world to growth. we concentrate on the deals we close and design winds we get. of licenseshis base that is yet to produce. we get the licenses at a high rate for many years. there is a hands off royalty flow.

huge optimism about the idea that everything will be connected by the internet. i knew your company is in a great position to at least leverage some of that. what is the big concern? fromor six years away being wiped off the map. type of incentive to regulate an industry by the government. we put on the help side of things. >> it is a huge issue. it's a massive potential. it can help many people. in lots of different ways. i think what is important to think up front about the strategy in which it will be secured to the network. homework on that before there is an issue and everybody is react and. that is something we think

about. we have been talking to the government about it. it is important to get it right from the start. thisen you look outside of and outside of smartphones, wearables. i do not know a single person. a lot of hype about it. we are one decent private away from the wearables side of the market. wearables, some great devices right now. i know lots of people with the wearables. [laughter] >> maybe we have three different group of friends. >> it is an area set for growth. it will attract a different things. there are lots of devices that connect to your phones. i find that useful. in a fitness monitoring, health monitoring, huge potential and

we will see it play out. >> i want to get something on where you see the smart phone market growing. we have seen a trend toward a lower price point. doesn't that trend continued this year? or is this something we are stuck to? >> i think there will be converting smartphones. there will be lots of innovation as the top and that will fit your -- top end that will filter down. they arelow-end, enabling the billions more people to smart phones. the market itself is very healthy. many years of growth ahead of it. a large amount of content. >> what is the percentage you out pace risk? weyeah, typically, outperform the industry. on the consumption market, i

would expect that against. >> simon segars, thank you. the ceo of arm holding. it was all about the royalties. stay with earnings. credit suisse has posted its biggest loss since 2008 after paying a $2 billion u.s. fine. manus cranny is in zürich where he spoke with their ceo. he joins us. >> jon, when you look at the numbers in of themselves, to me, the litigation has had an impact but not so far in the numbers. money coming into the business ahead of estimates. the same as jpmorgan. not as bad as they could have been.

the prices are rising. you are talking about smartphones. the historical price on my unb randed phone. -- to getk suites that 60 francs, were you surprised at $2.6 billion fine? been a very long-running issue for us. aese are events that happened long time ago. we spent a lot of time fixes this business and a longtime working through the resolution. i think that was a very long suite of time. where we ended up was a significant fine. significant impact on the business overall. getting inortantly, behind us is very important for the business. it was our biggest litigation or regulatory issue out there. resolution from the

corporate point of view. it was in "the new york times," and your tenure. they called to the teflon man. plea, the guilty fine. do you feel like you personally should make more responsibility about what had happened? >> these are issues that were not created on my watch. this management team will work hard to resolve and we had an honorable resolution and did not require emergency law from the swiss government and in our break the law in reaching this agreement. it has probably been the single issue that took the most time for this management team to actually resolve. it was important to get a resolution for the bank and i think we did so and honorably. i feel good about it. i want to do what is in the best

interest of our employees and clients and shareholders. that's what i plan to do. credit that in mind, suisse and continuing in the role absolutely focus, is that your intention? >> we have a lot to do especially about putting this behind us. we have a good future in driving the strategy and i think we are doing a great job for our clients. i think we'll be able to do a great job for shareholders so i feel enthusiastic. >> brady dougan. i asked what are the changes we are going to see? what are you going to do to make sure it never happens again? >> he's that we do not have a libel issues or fx issues. compliance, compliance is the number one issue. if you want a job -- [laughter] thatwant to pick up on exchange we talked about his

role at the bank. what about the question, is he going to leave? i got the sense that is a man who is not going anywhere. what was your sense? >> no, i get that sense. corporate video this morning apologizing for the misdemeanor and behavior within the company and thanking clients for the support. the second part and much more important part and i think he is sticking to it. it was not on my watch. wealthot in charge of management banking at the time. i was looking at the investment banking. on could say this was not either side of the business. not present any pressure about leaving. he sounded like a ceo that will be there for quite a while. he's won the last few standing. areyd blankfein and dimon

gone. -- he is one of the last few standing. >> will get more from you. i am sorry about the weather. a drop in revenue. the most concerned regions. that is later this hour. ♪

>> welcome to "on the move." it is 8:25.

and we are live from bloomberg headquarters. still with us is jean medecin. very important man. he has a view on tech. and another person who has a view is the fed. that said the valuation of some tech companies are fresh. >> i think the federal reserve worriedhow they are not about the valuation of the market in general but when we look at the market valuation, is not what we think. at theavior of stocks beginning of the year which has been pretty moderate, but more e. there is nothing subject that takes over the value. when you look at companies like google, they are trading on 22

than 20%s year or more earnings. we do not see any real case. youhat is google but when look at the likes of amazon. it is big. agree.solutely you need to be selective in your assessment. very clear case of a great company that does not always makes the great valuation. behaviorgh so far, the of amazon stock price has been good. arm which we adjusting this earnings, isrms of a good company. perosnrs are seeing 20 it line growth and earnings leads to a higher price.

>> you heard the man. that is jean medecin. thanks very much for joining us. harsh time for you by ministers. they are in brussels talking about sanctions against russia. euit is crunch time for ministers. ♪

>> welcome back to "on the move." i am jonathan ferro. live from bloomberg headquarters. look behind me. the big focus is brussels. geopolitical risk. equities pushing higher. we are struggling. is it a sign of complacency? caroline hyde. >> thank you so much. let others did into the biggest movers. even though there was less of volatility, they called it subdued, they are managing to ramp up. the biggest performer. up nearly 5%.

the dividend it beat. ratio is being raised. you are getting more of the ever-increasing profit. ex, they are expanding in germany and france. opportunity down in europe. ll nearly 6%.k fee was, a 35hat never billion pounds merger. they cannot agree who would lead the company going forward. they go at it alone and not a pretty sight. they said they are extremely cautious. ed around the world. hittrength of the euro will a lot of companies. they said it really affected things. blicis.own for pu

we know the trials and tribulations of royal mail. not as bad as expected. parcels were hit and why? amazon is coming in. 2% increase. >> thanks very much. some of the top headlines. itsi arabia is opening up stock market to foreign investors. the move expands the arab world's biggest exchange outside cil.he golf co -- gulf coun it has gained 14%. off to indonesia. is the winner of the closest presidential election in a decade. he leads.

police and politicians are calling for calm. there could be a potential challenge to the vote. are due inministers brussels to discuss further sanctions against russia after malaysian flight 17. europe is under pressure to expand sanctions. the united states increased sanctions last week against russia's largest oil company. ryan chilcote on the ground with a more on the eu foreign ministers meeting. over of strong rhetoric the weekend. expectations coming in have died down a little bit, maybe? they have died down. just as the meeting got underway, we got a tough talk from the german foreign minister saying higher pressure, tougher

measures against russia. the little boy nina minister had a -- little when you -- lithuanaian minister had a different view. he said the decision-makers need to be personally sanctioned. action a real stale of that in the eu countries can take. they can go as far or do as little as publicizing the names and companies that they intended to sanction that they agreed to last week and they would publicize that list by the end of the month and maybe we can get it today. they could go further. there are talks of a weapons embargo. we'll have to see. there have been some issues, some development that might abate pressure on russia including progress on the ground, over 200 bodies evacuat

ed. they are in a rail cars bound by about -- bound to a city controlled by ukraine. on a planeill be put to the netherlands. the 2 blood boxes were passed over to investors. by the separatists. -- the two black boxes were passed over to investors. intervened ton make sure they came about. there's also a bit of reluctance we understand on the behalf of severeherlands to take action against a russian before the bodies have been impacting wait it and the academic -- have -- economic been evacuated and the economic concerns. >> even after what happened last

week, give me some color. what to do european countries have at stake here? thehe eu leaders say economics will not trump. they seem to be concerned about the downing of flight image 17. germany has a lot to lose. mh17. downing of flight the netherlands are in second place. and the issues that the netherlands phase. 193 dutch were killed and that crash. has its issues. if there are financial sanctions against russia, the french are in the middle of the sale of 2 carriers. the russians are already training just of the shores of france. last night, present along said if there was -- president anlande said if there was

embargo, he would give the second carrier. crimea. the coast of you can imagine the pressure on president hollande. the british is saying this is not something we would do. the french president is saying maybe the brewers should go after them. this is not easy. the prime minister of germany said it will be a very tough meeting. back to you. >> great work. it is being felt in england as well. probe.. will pose a a public inquiry into the 2006 poisoning. it will plant a public inquiry. on a people are speaking condition of anonymity. -- they will plan a public inquiry. if you do not remember the

story, a former critic of vladimir putin's government a he died of poisoning. of course, the rhetoric is building. as eu foreign ministers meet. expect more on that in an hour. story.tics are top u.s. secretary of state john kerry is in egypt to broker a deal between israel and palestine. 570 palestinians have died and 29 israelis have been killed. in tel gotkine is live aviv. will john kerry be able to broker a cease-fire? he will be think coming all this way if you do not think he would not have an impact and you was during peace

negotiations between israel. he left empty-handed. he hopes that his presence will be of to do something. kerry is due to come to israel later. of course, we have a problem. a problem of trust. hamas does not trust the u.s. or egypt which has been crushing the muslim brotherhood. of muslimn offshoot brotherhood but they trust turkey and qatar. who is the one that will have the trust of both? and will accept an egyptian cease-fire. who will be the broker here that will be able to get through both sides? not just the current operation by israel but across israel and egypt and the release of prisoners who were rounded up.

it is unclear if israel will exceed those type of demand. need forhere is a has achieved it something. >> not much for us about plenty of uncertainty. as you see the fighting continued in the region, you have an airline industry in israel that continues to suffer. they have been hit before but there is an impact. the national airline listed and their shares are down about 4%. a statement saying their first quarter revenues could be hit by $50 million. this year was to be a record for tourism but people are putting off trips here. people seem to be staying at home more. they could be staying home more

and flying less. in other airlines, going to turkey. when the turkish prime minister compared them to hitler, it took a hit. it is having an impact. >> thanks very much. great work. we will stay on the middle east. want to invest and the savvy market and now you can. the arab world is opening to foreigners. for more, will head out to dub ai. to be aw, you had local. that is changing, isn't it? is changing. yesterday, the announcement came in late. websiten a news agency and it has gotten a lot of attention from the market for all over for those who want to access to the saudi market for a long time. it is the biggest in this region. they have around $135 billion.

there are spending big and the economy has grown around 6.4% even with all of the turmoil politically around this region and turmoil economically dubai has suffered which is nearby. people are very excited about this. the exchange came out today. les aboutout with ru how it will go about opening the market and the steps it will take. they said the time i would be the first half of next year. whatr people not familiar, are the stocks and names that investors can get their hands on now? >> saudi arabia has some of the largest and most important stocks that investors have long wanted to have access to. the biggest petrochemical maker in the world is listed. bank, one of the largest

banks and the world. kingdom holding, investment of the billionaire prince and listed on that market and has stakes in many companies and so on. there are very large companies in saudi arabia that a lot of people would like to get the ability to trade in them. >> fascinating. thank you for joining us. still two come, a drop in revenue. the markets shrink. the most concerning regions. that is later this hour. ♪

>> welcome back. i am jonathan ferro. the big news is france, publicis. the french advertising giant is areg alone and today feeling the strain. for more is caroline hyde. overss this is the hand from this failed merger. >> 35 billion dollars is what it was supposed to be. it cannot agree who would lead this juggernaut in the advertising space. alonegs find it sells all -- companies find themselves all alone trying to work.

the strength of the euro is bringing revenues home. it did not have such an effect on the bottom line. but also starting to see even though with a new business, and american express, companies are putting campaigns on ice. they are not managing to see particular growth in north america where more than half of their sales are. extremely cautious. rightany really worried now. >> it is interesting what it means for other advertising companies. they have been distracted by -- over the past 12 months. any sign of how they will rectify? >> they are promising to get the rectifying going quickly. they are trying to reestablish themselves in the new environment. you have 42% growth in the digital revenue. it's a new landscape.

the media and advertising companies, how do you adapt? ever going to emerge -- they were going to merge, that is how they brooklyn to adapt. f to that by 2018. -- that is how they were going to adapt. -- and they were going to do that by 2018. they are trying to strategically be updated in october. levy is set to be leaving the company. reigns over. the new change. october will be the big one. >> a lot of change. quite the roller coaster ride. here are more companies on the move. netflix has surpassed 50 million subscribers with "orange is the new black."

it beat estimates analysts. more than doubled from a year earlier. ch posted a swat decline. they cited the wickedness of currency a disability was frank. -- they cited though wickedness of currency -- the weakness of currency against the swiss franc. government isthe selling off lenders. it will force the government to billions in euros. "the pulse" is coming up. a look of what is next. brussels?s on

>> a big focus and what the french carriers mean to industry. russia selling all one of them and the french saying they may not go the other. 1000 plus jobs involved and a lot of money involved. the reputation of the french industry. with talk about that. we'll talk about as a this is story instead of geopolitical. -- we will talk about that. >> the question i asked coming into all of this, is this where we are at? warships, isn't this the only thing that matters to france right now? willybe the second carrier not be sold. there is wiggle room. the french understand the pain of their neighbors, what the dutch are feeling. everybody thinks germany is the most exposed.

the duchess pretty exposed to the russian government. industrial exposure. we will talk about that as well. the dutch are filling the story more than anybody else. what does it mean further economy and what kind of exposure are we talking about? the geopolitical story and business angle. have you ever seen "catch me if you can? talk about it. it is brilliant. the whole movie is brilliant. he will be here and joining us. >> i am excited. >> i am excited as well. fraudl talk about for -- and not check fraud which is what he was good at. how we are an effective. we know we need to keep our bank accounts say. talking corporate fraud. a really big deal. a few thousand pounds and has

hundreds of thousands of pounds. that.l talk about >> he held the regulators. >> he has been working with the fbi every since he got out. >> will talk about in a few minutes. thank you, guy johnson. we will be back. ♪

>> hardware design a with improvements over many years. >> it is not one of the things we started a few months ago. are a sightn tools to behold. like a slicing machine. >> you are starting to see the same come alive. this is our model shop. >> it employs all kinds of tools. table saws. drills. three deep printers in all types of materials. metal. -- at three deep printers and all types of -- 3-d printers and all types of materials. it led to a $900 million right

down. but a share is still low growing. thet is a hinge for kickstand. >> you get a real sense of what it would look like and feel and sound like when they made the kickstand at a smaller size. they knew what they were going into. 3 has to get everything right. iterate, iterate. >> skinny, skinny, skinny. >> it is huge for us. >> and thousands of man-hours went into designing this stylist. -- stylus. >> we wanted to turn it into something. >> they have given microsoft what they need is a productivity tool to replace the laptop.

where you get to the perfect piece. message. the that is it for me. guy johnson is next with "the pulse." you can follow me on twitter. ♪

>> the deal. the friends said they are set to cancel -- france said they are set to cancel a second warship for russia. the biggest stock market and in worl preparing to open to foreign investors. d our interview with the ceo of credit suisse. sediments -- the settlements and drag it down earnings. -- settlements