>> emergency meeting on gaza. the united nations call for a cease-fire. the obama administration says satellite show russian forces firing across the border into ukraine. ryan airlifts its four-year profit goals. we will talk to the company's cfo howard miller this hour.

hello, welcome to "countdown." reports goods company quarterly results. caroline is here to tell us all about it. >> this is first-half numbers. rbp is the pharmaceutical unit it might be spinning off. they are continuing to perform in challenging markets. what are those challenges? they are rather sluggish. with russiancerns where they have got exposure as well. quarter was growth of four percent, meeting analyst estimates. profit alsolf net in line with estimates.

might be in line with sales. sales in line. both under stress with the british pound as well. that is not your cash exposure. when you are bringing your money back from your sales in russia and north america, it's going to be under stress when you have the pound being so strong. we are going to look at what happens to the pharmaceutical unit. they spin it off? will they sell shares? are pursuing the market. will they spin it off and potentially sell shares later? pursue with ato

separate listing. >> since october of last year they said they are going to be analyzing. that helps you wean yourself off heroine. >> and other opiates. they have got serious share in america. affecte seeing them those with opiate addiction. under stress.n they have been falling by 11% in the last quarter because of this competition. overall it is worth 11 billion pounds. they are going to be spinning this often selling shares. they expect this to take place over the last 12 months. the narrow fan. -- neurofen. what a great economic

indicator. direct. if sales go up they are presumably more negative on the economy. >> this could be a whole new index. you would love to be able to just look at it and see what is going on. people feel very competent of -- confident about the future they feel more confident about having children. >> not meaning to show any expertise, but there is competition. pretend to use that is any way of deeming an index. i think the key focus is it is going to be spinning off. we also want to know about other emerging markets. they are looking at africa. >> i am looking at the middle east and africa. if you include currencies down 17%.

currency, for example russia. one thing we talked about this trying to focus on africa. see opportunity, specifically nigeria selling consumer hygiene. they are doing these public service announcements about improving public health. this is one thing the co was talking about. the average life expectancy of a male in nigeria s 52 years old. they think there is room for their products and that is something they can help improve. >> the united nations security council have called for an immediate cease-fire in gaza. more than 1000 palestinians and 45 israelis have been killed in almost three weeks of fighting. elliott kotkin is live in tel aviv. are the you in's words -- the un's words continuing to be heated? >> we may be inching towards a

cease-fire. the senior officer is quoted as idea is to stop firing at targets in gaza. it exploded in an open field, causing no damages or injuries. the israeli army says it retaliated at the specific point where the rocket was fired. beyond that it doesn't seem to be a lot happening in terms of strikes. gettingsible we may be a de facto truce or cease-fire on the ground now. that is what they want to allow humanitarian aid to go into gaza. they want all parties to engage in efforts to achieve a durable, fully respected cease-fire. we could be getting there. we have got no official confirmation on that, but other sources suggest the israeli army a kinds saying there is

of truce in effect now. israel wants to continue to destroy these tunnels militants have been using to try to get in from the gaza strip. >> it is rate decision day today. is there any sense the conflict may prompt a rate cut? >> it's possible. polledof 20 economists by bloomberg say it won't happen. theeconomist predicted first rate cut says we could because of the potential impact on the israeli economy, particularly the impact on consumption and risk them. i was speaking to one investor, and he was telling me much more damaging for israeli companies is the strength of the israeli shekel as it is close to a three-year high against the u.s.

dollar. it's close to a 12 year high against the euro. the mosteally causing pain, calling for the israeli central bank to go buy more dollars in a bid to try to .eaken the shekel >> elliott, thanks. from one geopolitical hotspot to another, i am looking at russia. we have a lot of russian lot to talkd a about. we have the google of russia reporting. the second largest steel producer in russia. is an entertainment company that focuses mostly on western-style sitcoms. their ceo has been talking about

on the back of the trouble in ukraine russians are becoming increasingly patriotic and want russian conflict. it is u.s. listed. one of the owners is a russian tolionaire with close ties president putin. something to watch. we also want to take a look at some of the western partners. bp has a 20% stake. total has a 17% stake in a company called nova tech. they were sanctioned by the u.s. already. that's obviously something we are going to be talking about through the week. >> all the talk over the weekend was this mounting surge in the eu we know angela merkel is trying to bring together the nations in can roundether they

them up, who will be on certain blacklist. where are we? is much higherit today. one of the reasons is the u.s. came out with satellite images showing russian artillery units and ukrainian units on their side of the border. it looks as if it is showing these russian units are actually ukraine.-- firing into the u.s. had not provided any evidence. they upped their game in an effort to nudge europeans into action. the europeans are meeting tomorrow in brussels. they're going to look at the sanctions which may involve restrictions. >> there are calls to stop russia from hosting the 2018 world cup. will those be heated? >> so far they say no chance. aey say the games are wonderful opportunity to enact

positive change in good for diplomacy, what the calls are getting louder. we have to watch that. it's obviously not where things are. >> we have a long time. >> if we look for months ago no one thought we would be where we are. >> up next, strong results. we will talk to the cfo howard miller next.

>> welcome back. let's have a look at company news. is said to beon selling its medical unit. a were looking to sell for about re-billion euros. they have also held talks with nestle. mcdonald's in china says it will menu afterited evidence of expired meat. they said they hope to resume a full menu it in early august. they have expanded the recall to include all products sold to global brands such as mcdonald's and kfc. the movie starring scarlett johansson took the top spot at

the box office. it led u.s. and canadian ticket sales while viacom pulled in $29 million. welcome back to "countdown." >> ryan is here to talk about things. europe's biggest discount carrier ryanair looking to be europe's friendliest by targeting more primary airports. they hope to draw more business travelers. company results were released about an hour ago. >> you have raised your profit forecast, but it makes sense. you have said it has relied on second-half yield, of which there is no visibility. >> it's too early. q1, but wery strong

don't have a huge amount of bookings at this level. it's very difficult. we know we had a difficult half-year last year. we are cautious. we had a lot of new capacity coming on. we are just eating cautious. >> are you being traditionally conservative? our style. >> it's probably below their range. year we had two warnings. we had a difficult time. this is the airline business. you cannot read it with certainty, so you must be cautious. hit quiteasyjet was hard, shares were down eight percent, you are saying the capacity is expanding. should they be worried ryanair could come up with something like that as well, or do you feel you are able to navigate your capacity increases slightly

differently? >> i think the difference is we have a radically different price fair. when you have that kind of head it'sand leading edge, difficult to see. >> presumably that is going to change. you are aiming to be the friendliest airline. >> we are always friendly. we are very friendly. really aiming to be the friendliest? >> we had someone lost our way. we have changed a lot radically. i think it's probably appropriate. >> what are the changes? the business-class class area. presumably that would bring it up. givesg and 80% had room it a lot. >> it is not cheaper than

ofyjet? >> it is 80% easyjet. our average is 46 euros. >> i look forward to that. >> it's on average, so not everything. we can thought about the cheap fares, but the average is 46. what we want to offer is a really good business product. very good schedules. extra legroom. us one taste of what you are going to do. i know you are not going to and not until september. ,> we are to give premium seats fast tracked security where available. at a lot of the primary airports it significantly improved. think that is very unattractive. it will be a lot cheaper than our competitors. >> when you look through the

last three months what is your single biggest concern? unless something untoward happens over the summer months like the lays in last-minute closing bookings, which tend to be very attractive in terms of ofcing, that's the kind thing, something geopolitical. >> there are plenty of politics. >> people's travel plans are pretty much decided. is going on in ukraine, with russia, what we have going on in israel. how does that feed into the threat? that's i think in the more i think weuture, hedge the oil. deliver 70going to million euros worth of savings.

am i right? >> that is because we have more capacity. there will be less savings. oil is a key issue. cost. if things were untoward and we had a geopolitical situation that could be adverse. part of theificant business i think we should keep a close eye on. wasoday the ceo of emirates saying they are not going to be flying over a rat. how has this made you reassess your flightpath. emirates says they will now discuss their own views and share information far more easily because of these concerns. but it doesn't really apply because we are not really a long haul operator. it's really more for long-haul carriers. >> there were three fatal

crashes last week. it was a bleak week for the airline industry. do you have to reassure your passengers more? does it affect passenger numbers? >> obviously people are reflecting these things. we have the highest safety standards in the world. the european carriers have very tight security. we have an way ahead of where the u.s. was after the lockerbie disaster. america is only catching up on that. people travel in the european union are very comfortable with what we offer. safety is our highest rarity. >> the news that came up last quarter. you are stepping down as executive. >> this is my last quarterly result. 93rd set of quarterly

results. >> what was your favorite one? >> what was my favorite one? i have continued in ryanair. fromstepping down full-time. i continue to guide as i have done. he would never leave over his dead body. >> we have had quite a few discussions. one of us has got to go. is great to talk to you. if we don't speak to you again, i hope we will. thank you very much. ceo.d miller, the deputy is in talks tor go public. details next.

>> welcome back. let's talk ipos. initial share sales. the german manufacturer of auto headlights and electronics maybe going public. if the company lists in frankfurt it may be germany's biggest initial share sales. time i mike? >> we have heard they are looking at doing it in the second half of this year.

economy isrgest faster. >> what does that tell you about the ipo market in germany versus other countries? >> one thing we have been flagging is volumes were the most since 2006. germany has but that trend. a lot of private -- has bucked that trend. you have more of the family-owned companies. >> the german market is tricky.

it is 61 billion. the table.11 on >> usually germany has a good portion of the market. >> i have got to be very rude and interrupt you. countdown is next.

ferro.s get to jonathan sessione just off highs. year to date the euro near the lowest of the year. you see that lower. this thursday. cpi expected to comment zero point five percent. finally it is the dollar side where the story is.

you are finally getting a little bit of reward. a big week for all things u.s., a plethora of data. no forecast, but it's about the statement. beforetings left october. as tol give a little clue when rates might rise. we are looking for an estimate .f 234 k that would be another month over 200 k. >> these are the top bloomberg headlines. the united nations security council is calling for an immediate and unconditional cease-fire in gaza. the palestinian observer says the cease-fire is just the first step. the main idea is to have a

humanitarian cease-fire for a time which we hope will be a were all of the issues would be addressed through a process and through our brothers in egypt so we can address these guarantee this separation will not be repeated. >> dozens of people are killed after an upsurge in fighting. there have been significant battles made. they have all of actuated staff and the treasury -- travel advisory. the united states has released evidence they say proves russian military has been firing across its border to attack government forces.

the dutch prime minister said heavy fighting has prevented investigators from reaching the site of the down malaysian air flight. >> angela merkel said to be pushing for her eu counterparts to sign off, some say by the end of tuesday. meanwhile the dutch prime minister said heavy fighting around the site prevented investigators from reaching it yesterday. joining us, aaron would. very much for joining us. to do is that you going it? are they going to press the button on sanctions? they came up with satellite images to nudge the europeans along.

>> it is not just about the aircraft. aircraft is a terrible happening as the result of a situation getting out of hand. i think the e.u. is more or less condemned to do something. the financial sector is going to be the main target. if we continue to hold up the construction will have some effect. >> do you think all members and potentially not allow russian banks or state banks to use capital markets in europe? >> i think the main elements are there. u.s. sanctions would be quite telling on european banks. i think there would be pressure on the russians for that.

whether there are individual countries within the eu, they are going to be more reluctant than others. where you were as an ambassador, what would you be trying to advise david cameron would be the reaction of president putin? i know you were never that close. we areuld you presume pushing his response to be if you put in these sanctions? asked the short term response would be anger. the response would be to resist pressure to change his attitude, but you have to bear in mind he has already failed to secure ukraine in the way he hoped, that his efforts in the east of ukraine to provoke a widespread popular uprising have been disappointed. he is in the trap. whether he will respond by making things worse, which he may very well, doesn't make any

difference to what we do. >> which i want to ask you about. satellite images purport to show artillery fire over this past weekend. if they are accurate, really what is going on, he knows presumably if they are firing artillery that is going to be seen. he would be aware of that. he doesn't seem to be responding to these sanctions and threats of sanctions thus far. you see this going? a lot of people talk about how we are entering a cold war. at what point do you think president putin would respond to this pressure by changing course? there is no evidence of him changing course. iti think there is evidence has not gone as well as he hoped. i think there is evidence some around him see this is a dangerous course to go down. it's true he is the sort of

arson for whom the idea of retreat is extremely difficult, but he does have to take some account of the effects on the russian economy. can't suppose he is going to change course immediately, but i do think that doesn't mean we should do nothing. work,y it's not going to but what are we going to do? >> how much does the russian economy have to contract for putin and the population to really stand up, because it is already sliding. what does it take on an economic the population make its critics step up? >> you are right to divide putin and the population. the population is under propaganda. they believe russians in ukraine

are being persecuted and they have the right to stand up. there is a certain degree of heroism in their eyes on the part of those resisting. entourage, they are not losing directly, but what they are losing is prospect for the future. i think that must have some affect. ukraine at the moment? the government is having emergency reviews. what are we expecting ukraine to do? >> i think ukraine so far has come out of this very well. solidified. it has become very much anti-russian. as certain degree of chaos is natural towards democracies. i would be basically quite optimistic of that. >> do you think there is a bit

of unfairness about how russia has been treated about the mh17. one separatist and tell the ap they were behind the downing. i am sure you have gotten this question before. the united states did down an iranian air flight. the united states admitted it and made reparations instantly. >> they didn't apologize instantly. they paid reparations. it took a number of years. i don't want to make light of the downing of inmates 17 -- of mh17. is there a difference between how the world is looking at this and how they look at the downing of that flight? >> i think there is a key difference. the key difference is the downing of the aircraft resulted in direct military intervention

or in direct military intervention in the affairs of the neighboring country after they grabbed its territory. i think that is a critical difference from the gulf situation. a big mistake was made. it was a bad thing to do, but it was an understandable mistake. >> what is the endgame here? you are a man who knows his politics. what is the point at which all parties can come out without having to give face? >> someone is going to lose face. we have to realize the call is whether or not russia have the right to determine the way it governs itself. it is a situation that has gotten out of hand.

the flight was a tragedy. it has woken many to the basic argument. ever reachow we will a situation where any investigation of the downing of the plane will be beyond dispute. the evidence is mucked up. is confusing. we know who did it really. i think the evidence would stand up in any court of law. >> is the russian brand irrevocably damaged? >> it is damaged. to say someone is a pariah doesn't mean you don't have to deal with it. you have to deal with them realistically. i don't think it's going to end in regime change. change and develop

over the years. putin started liberal and has turned into something different >> europe and its dependence on russia for gas, that will change? life that is already changing. it would have changed the respective of what is happening now. there are huge pressures on the gas market which have altered its structure. we have always needed to do business with russia. is this which depends on the monopoly and forcing political decisions on people is wrong. which depends on monopoly and forcing political decisions on people is wrong. >> we appreciate it. >> up next, strong result for ryanair. how will it fare in a matter of minutes? 18 minutes time.

>> ryanair lifted its four-year profit goals. the company said first-quarter profit more than doubled. the carrier is expecting a carrier to growth -- a return to growth this year and has refined its approach.

glaxosmithkline is open to a possible spinoff. whittier says strong synergy still exists with the over-the-counter drugs. hsbc holdingsand have been sued for allegedly rigging the silver market. neither hsbc or deutsche bank will comment on this. this is 7:46.

>> you name it. the level of profitability is going to expand. the u.k. company has been heard by the strength of the british pound once you bring back sales from north america. half of the sales come from byope. they have been hurt foreign currencies weakening in asia. as well. we are expecting first-half sales to drop a little bit. we are seeing adjusted net income better than expected. the key take away is the pharmaceutical unit. this is all

about opiates. to be abouting heroin. they made a treatment to help addicts. strong.ry got very strong market share. competitors are starting to weaken in terms of sales. >> they are going to farm out pharma. that is the take away. >> they are going to be selling thees to another ipo in next month. >> it has got a big share of the market. theas about two thirds of market in the united states. >> the growth is still there. the amount addicted, this is going to be a company that can continue to build a unit on its own. >> sales fell five percent in the second quarter. >> while it has a huge market

from 68. is down the competition is from generics. you know when generics come in market share drops quickly. >> they are not ruling out a sale of the unit. , it seems asegy though they are going to tackle the share sales. they are going for an ipo. >> we are seeing a bit of london, what the city looks like. a bit dark. open.rkets in 11 minutes time for the futures up by about a third of one percent. -- ftse futures up i about a third of one percent. ♪

>> welcome back. 7:52 here in london. we look at the big macro themes of the day. >> you have gdp wednesday. it has payrolls and inflation data on friday. for me the big one is the said. bloom basically said there

are two meetings left before qe ends in october. september, and october. when do we get the change in language where it is going to be more nuanced? rises.e got rate the those lines about if labor market data continues to come. isthe fed statement that what people are hearing. >> the unemployment rate comes down half of one percent. >> for a lot of people the boxes will be ticked. >> friday is the big data of the year. next payroll. another month above 200,000.

inflation data. the federal reserve is still quite low. they are pushing to two percent. that could push the market. sort of at the factory level. >> personal consumption expenditure. the way things are better are not just out of the pocket expenditures. it is things like house care. it is a much bigger rating. cost,ings like household they are lower rated. the difference has been a spread that has been quite remarkable. pce traditionally undercutting. >> gdp in a couple days, first-quarter at 2.9%.

give back.ke you >> expected to bounce back. many people expected to be around that point. are expecting a strong second half. >> what does this mean if you are an investor saying i have to wait until friday? we have the federal reserve about the price in terms of stocks. >> about the interesting thing they tookfed was fixed income. then the last month you are actually seeing losses for junk bonds. that's quite interesting to see how that plays out into equities. >> on the move is next. we are watching ryanair.

see you nice and early tomorrow.

>> good morning. welcome. a bit of a bumpy start. we are in london. we are moments away from the start of the european trading session. futures are pointing to a higher open. we have geopolitics to talk about. geopolitics front and center. here with me now elliott got can, caroline hyde. elliott, let's start with you. >> the united nations security call for an immediate cease-fire in gaza. an israeli spokesman tells me

they are not firing from the air. he wouldn't call it a cease-fire. >> satellite images it says roof russia has been shelling a unit from its side of the eu gathering tomorrow. the german chancellor saying eu must act this week. we aren't going to look at russian companies and how this will affect them. >> i am looking at potentially another ipo and another share sale brewing and the united kingdom. if you need some painkillers after the killinth