>> pessimistic about a peace deal. russian foreign minister said there is no progress on a cease-fire. julian assange is reportedly thinking about handing himself into police. he has had a news conference announcing the roche is said to be in talks to buy out chugai. welcome to "the pulse." i am anna edwards. it is 9:00 in london.

let's get to our top story. russia and ukraine discuss a cease-fire. foreign minister said he sees no progress on the resolution yet. is ang us on the phone bloomberg news. thank you for joining us. you are in berlin about cousin that is where all of is taking place. we heard from sergey lavrov that there's been no progress on a cease-fire. what progress has been made? said they have had a difficult but reductive talks. -- productive talks which and up without an agreement. they have not reached progress on a cease-fire or resolution of the ukrainian crisis but what the lavrov said has been achieved is not just an the last 24 hours but some days it's

progress on controlling the border. slash the russians ukraine the border and progress border andukrainian progress. ensures theressia is no illegal border crossings from its side. same from thethe ukraine. he also repeated that a cease-fire should be unconditional. counting on flying willst the rebels, that not be any chance for real progress in the ukraine. what is the latest on the ground there and the convoy? the report suggest the ukrainian government is gaining ground on some of the separatists in eastern ukraine. correspondent as

in the ukrainian/russian border who is following the convoy. now from his reports, we k that part of the convoy has arrived already to a checkpoint on the border. and work on the checking of the convoy has started. and also, our reporter is quite highhat military activity from the russian side on the border. today, how he can show support for the russians heading to the border. heading towards ukraine. he said all of the movement, he confirmed the movements.

all of this happening on the russian territory and this is because there's a war a hundred feet away. we are hearinge, reports from ukraine and that troops have landed in some parts -controlled regions, rebel controlled cds. we also know that the fighting for ais going on can last very long time. russia itself has not experience -- having wars where they are verying inside and it was difficult operations to take control. for example, the capital of chechnya, it took thousands of lives. and it can last for months.

thank you very much. a bloomberg reporter live. you ann, we will bring interview with ukraine's foreign minister. shares of chugai jumped the most in 4 decades. roche is said to be in talks to take over the japanese drugmaker. let's bring in our m&a, matt campbell. what does roche want for chugai? why do they want to take full control? >> good morning. what is going on is 2 parallel trends or goals. a firmer footprint in the japanese market for all of japan's trouble economically, it is the second-largest health-care market. an aging population, lots of spending on drugs. it's a place where roche wants

to be in their armored one of the leaders. number two is it is a are in the &d dynamo. a major drug has come out. they worked together. another drug for arthritis that is promising. it is often the outsell what we hear from pharmaceutical, orphan drugs. smallfor very populations. things like cancer and arthritis are widespread. a huge market. >> where does it leave roche in the whole m&a story in the pharmaceutical sector over the past year? has sat out. they have made a few small deals. dollar 200 billion plus company. chris and they are not afraid of big deals. >> by the standards of pharma

deals that have been fairly conservative. hase it why for, novartis, made a large a deal as on of a four-way transaction. strengthened by the deal. would've seen pfizer trying to make a big move with astrazeneca roche successfully shire. has set out the real chess piece types of will. it could be their effort to get things going. >> matt campbell. thank you. let's stick with m&a. vivendi continues. telefonica italian is expected to raise stakes with an offer for the internet provider. here with an update is caroline hyde. we were talking about this on friday. bring us up to date. >> we were using analogies on friday talking about these latin lovers. trying to woo the heart of

brazilian babe, gvt. we only knew that telefonica has been talking to her father and we knew they would be in discussions. -- do we have not gotten any diamond ring. there's already been a $6 billion prize. what are they coming for? pretty bling. stake tod offer a 20% vivendi, saying you can take some of me but also i will give you scan and in that game in the emerging markets in brazil. these two latin lovers are so desperate to get into to broaden their scope. they already have companies in brazil both tello phonic, -- telefonica and telecom. it is a youthful population.

one that is growing. one that accesses the internet more and more. phone revenues are falling off. we are not using our phones to call or text as much was done we are using data to do that. we are using skype. they want to that is in the emerging markets and the great potential of brazil. that's why at how you is offered a bit more than -- italia is offered a bit more than telefonica. it is hard. it is a state in the brazilian unit they would make. >> this what the suitors intent. what about the regulator? could they stand in the way? >> it is a key concern. we know that already the it is theer, communications minister who has said in the past, i do not want to let players, i want a more in

brazil and more competition. if he sees telefonica with gvt, that does not make two players, that makes one. the same with italia. you are removing an extra added a layer of competition. we have to see what the telecoms giant from italy can say to the regulator in brazil to calm the fear. to say we will continue to up the competition. it is a big win. have to become the to a telecoms regulator and the antitrust committee. two key players have yet to be wooed, who is already on the winning side. credit suisse is the bank that is helping advise gvt over all of this. we know goldman sachs is the biggest player in m&a when it comes to advisory.

goldman sachs is number one player with 23% of all m&a deals that been part of. these are the winners so far. i have to see who bids gvt. >> caroline, thank you. as they ukraine crisis enters a new day, leaders scrambled to ease tensions. will we see progress? later on the pulse, an interview with russia's foreign minister. trying to hammer out a progress at least on the situation. 11 minutes after 9:00. we will be back in two minutes. ♪

>> welcome back. you are watching "the pulse.". truce talks in berlin. at the center, one man, bladder putin. one guest said compromise will be hard to come by. joining me is a senior researcher. thank you for joining us. you seem to be on the same page as sergey lavrov. the cease-fire seems to be hard to reach. he said no progress was made on a cease-fire. quite right.

one of the problems is agreeing between the russians on one side and a europeans and ukrainians. compromise will grow difficult. there are numerous cease-fire discussions have yielded only limited results. forhis the prime minister france and germany and they will continue talking wishing to some of my sound vaguely positive that does not seem positive. it is the right -- is it in the right forum? >> i think so, yes. it is important for discussion. i think is also important to mention the finnish president with vladimir putin on friday. >> they share a border. >> a long border. >> it is very important to finland. not all european countries are feeling the same effects. any country that borders russia must be feeling it intensely.

>> the finnish economy and the russian trade which has dropped significantly and the finish president said we are on the brink of a new cold war possibly. he said we need to have face-to-face discussions with the russians and there will be no piece of by phone talks. it is important that president putin meeting with the finish president was the first since the july. it was an important opening of the door. i will do my four of the length of the border and between the countries. is that the right border? delegation benish attending? i'm trying to get around who should be there. is a european issue. it is right that germany has played a long roll. the german chancellor has been talking to president putin on numerous issues.

it is surprising not to see the european union a more unified but perhaps the european union is not a very unified on russia. it will require one country to take the lead, probably germany. >> what about russia's end game? do you think the leadership wants to see stability on this on the western border? does a benefit in any way from having an unstable ukraine? question a difficult to answer. in some respects, a stable ukraine heading toward europe is not in the russian interests. at the same time, having instability and conflict right on the russian border is difficult for the russians, too. as you probably heard this morning, the russian foreign minister said we are moving our troops around the border because there is conflict on our border. it is difficult for the russians. >> hold we believe about the

flow all what the real pros of the border? weeksraine said in recent . -- chris who do we believe about the flow of weapons across the border? military vehicles crossing borders. what did we actually take away from all of this? a very difficult question to answer from the studio without watching myself. seeing equipment going across the border a european leaders have seen it. it is a western provision that there is russian support training equipment and crossing the border. and one of the leaders of the rebels has said something like 1200 rebels receive training in russia for 4 months. it is difficult to place this. it is one of several distinguished between the russian and european sides. >> and yet on the ground, we

hear reports that ukraine's are making progress. if the russians are proven to be supportive of the separatists, it makes you wonder why they are not making more progress in their military activity. >> and that is an important question. why that made us so little progress at this is relatively small enclave in eastern ukraine? aremap where the rebels used to hold territory and still holds territory. on -- and there are still large areas of vrable held territory. >> andrew, thank you. good to have your thoughts. later, we will bring the interview with ukraine's foreign minister. time for company news. telefonica is preparing a bid fo gtv worth as much as 7 billion euros.

that is according to people familiar. they are said to beat telefonica's $6 billion bid made earlier this month. both companies compete in brazil's phone market. chugai jumped the most in 40 years after reports that roche was in talks to buy a stake. forai partners with roche oncology and arthritis drugs. old volvo is craving a safety first suv. it will have crash avoidance to prevent drivers from pulling out too early into traffic. the model represents the winding down of previous ford motors as they reemphasize for safety while wooing wealthier suv customers. could soon bemes a thing of the past. how new technology is helping to crack cold cases. that is later on "the pulse." ♪

>> welcome to "the pulse." check in what is happening

on the market. manus cranny. do almost managed to in a day what we achieved in a week. what political conversation cap have on in the markets. at it. london, paris, spain -- all the stoxx 600of being all. we have the federal reserve minutes and the jackson hole meeting on friday. a dove assessed on friday. -- fest on friday. london house prices, could today be on the turn? they dropped the most in almost 60 years. the number of sellers dropped by 20%. european equities market, it is showing stronger. theave a poll out that said banks want to take up on the matter from the target landing

from the ecb is dropping. it was originally to buy 110 billion euros and is dropping. there is a lack of demand. is that why the banks and do not actually wanted the cash? germany bond yields. just common a little lower. let's check that. -- you're just coming a little lower. a look at currencies. as i said, jackson hole is coming on friday. janet yellen. .ll of the central bankers this what the dollar is doing. it is drifting lower. a fairly tough week last week. the first full drop in almost a month. [indiscernible] forfed has a long way to go profitability. one guest said in the market is to dovish. we are never right, are we?

>> thank you. as the truce talks have an impact on the market, leaders gather in berlin in two deflated the newest tensions. we will bring you an interview with russia's foreign minister. small budget. is there a market for a low price of military jets? you can follow me on twitter. ♪

>> welcome back to the pulse. i anna edwards. me president draghi promised cash for banks, but it is a surveyed at the estimates of some founder and program designed to boost bank. for us to assess progress has talks to endmes the ukraine.

says it wants 15 suspects and scarborough's from russia. iraq's as a dangerous assignment is made by from extent mens tennis its -- one of [please standby]

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>> it stop to doing business in iran. a number had to the job. [please standby] i tried

>> and when you talk about the industry, there are other sec there's that are involved. fast-moving consumer goods, rendering the kind of my next might go back into a run after not being a phone. >> distillate producers sort of theythe international -- are talking about coming back. some --ustry ran potentially of sanctions were listed, but market share there. actually something that is allowed under the current interim agreement which lifted some sanctions on iran. companies are talking very seriously about

going back soon. the course, will watch cartagena politics haven't we? the u.s. and iran on -- at least in some areas. >> i think so. i think it argues that there might be a dinner. a lot of people said that the -- in iraq, for instance, fighting. imminently are not working together, there is an alignment of interest. this might help in other areas, like nuclear negotiations. >> so, television crime dramas like csi have popularized his work. reality, new advances in influenza clients are helping

police crack unsolved mysteries. jonathan reports. x this 3-d microscope is one example of our new tech can solve all cases. it is able to analyze objects in high definition. turn and fingerprints recovered bullets into solid leads. towith the analysis of me plants, that one-timer considered useless, we can now use 3-d reconstruction graphics to understand the dynamics of what happened at the crime. evidence examining the is all part of the road case, please to have to find the suspect. and him would a 13-year-old 2010. using a new forensic technique, a italian police were able to pick up microscopic traces of foreign skin cells from a scuba's clothing. they then analyzed it against 22,000 people, resulting in one

match. tose techniques are helping shed light on cases hindered by the passage of time. experts are concerned that touch dna may not always provide accurate results. ask if someone touches an object, traces can transfer from the hand. it could also come from a person touching another individual. it is essential to evaluate how the traces got been the first pulse. for these reasons, the dna of friends x have to be judged as crucial evidence for it to be used in italian courts. these limitations, there have been some breakthroughs. the dna evidence recovered will -- in the murder trial. with over 100 investigations

reopened, these technologies have proven that i italian justice is not to easily forget the past. >> let's bring you up to speed up with something in london. the founder of the wikileaks website has been hired up in the ecuador for two years. in darfur to euros. there have been reports surrounding his health and speculation about what the press conference will be about. continue to be listening in. byhas been investigated authorities since the wikileaks website published diplomatic documents in 2010. if he does not come out of the embassy, he could be arrested. arrest warrants in sweden surrounding allegations

of sexual assault which he denies. we will be back in two minutes.

>> welcome back to the pulse. we're bringing you live pictures this area. wikileaksr of the website is making a statement this morning. it remains unclear but he is going to ultimately be announcing here.

there have been reports about his health resentment. questions being asked about his health at the moment. byhas faced an investigation u.s. authorities ever wikileaks publishing military documents in 2010. he is mindful that he would probably be arrested should he leave the episode where he has sought refuge of a depressed two years, not because of diplomatic faces but because he allegations of sexual assault in sweden. he denies those allegations. remembering you and headlines as they come through. the governor of the bank of the name raythat meis the key interest rate for any increases. the bank has to have confidence that webpages are growing. minutes of the july meeting are due this week. joins us fromn

our. how important is this clarified whatd he is saying here. he is talking about how you don't have to see webpages growing up yet, that he rested be confident they are. he is doing is he is describing the bank's reaction function. they started with an unemployment. their assessment affair capacity has narrowed. now -- but they did and is looking at marriages as they assessed the necessity economy's capacity to grant without fueling inflation. but he's saying now is that even if the official measures of wage growth are not there, if we are confident that wages are recovering, that can be a signal for us to raise rates. these remarks about villages, but they tell us about what rises? some of the banks in response to -- brought down

expectations, some of the banks pushed out their expectations, didn't they? what is the latest? global market data has been a little puzzled. you have contracting village growth and record employment, you have unemployment falling. it is a difficult time to measure the amount of spin a capacity in the economy. but market carney is doing is saying that it did-dependent. data-dependent. we're going to be forward-looking because we are mindful of our mandates to target inflation. -- if they awaited want to be before the rates arise, there is

a similar message coming through. if we look ahead, we look ahead, and have the minutes of the latest bank of england's meeting. i'll be going to see a split? i really actually going to see any of the hawkish members voting for a rate increase this time? or is it too soon? >> i will economists show some people are expected to be a split. it is an everyone is gradually rises, this is what they want. , you need toarting move soon. mark got asked about this at the press conference and he did not actually give a clear answer as to how we would address the argument. some members of the committee, -- >> ok, of course, does not operate in isolation. the platoon, the governor was

asked about the two -- geopolitical tensions. coming through in the latest numbers, and lack of growth. in his opening statements, but stood out as he said even if -- you talked about religious and all the things around the economy, he said even if things were in place, it would still be out there. does that suggest to you, the headwinds of politics would be enough to slow the hand on future?ises in the >> inside the substantial headwinds. it is harder to see taking off at a time when your biggest trading partner is contracting. you mention this other geopolitical risk. another thing you cannot forget is the scottish referendum coming up next month. a rate rise,anted you'd be reluctant to put that in a month before the referendum. about it,ld not speak

he said the word continues in place. he could not talk about the right now. >> they could not be revealed. q very much for talking to us. the latest on the bank of england. now frometting more the ecuadorian embassy in london. be leavingg he would soon, he has been effort to. it is time for today's hot shots. an immense amount of training to be in your body. one wrong move, and a broken shoulder. in south africa, the former sit down and stand up jets game went shredding a rave. he did a few backflips and kick

stands on his jets game. he got a big boost in the quest to become the empty season title champion. the team is one step closer to their goal. big on a budget jet. the company has created an aircraft they are trying to sell for less than $20 million. i still compare to other military jets. buy it?one we visited a company's headquarters to find out. next the scorpion is a multi-mission strike airplane it designed to be very effective and very affordable. >> in the girl was to create a very mission relevant aircraft for today's security environment

that is below $20 million and acquisition cost and below $3000 per hour to operate. ♪ a classic acquisition program at , it could spend up to 10 years just developing a hand holding an aircraft. -- in lesse it less than two years. >> the scorpion is primarily manufactured out of composite material. we chose that because it would keeping the boat and the cost down. we kept the construction secret maintain competitive advantage.

the most unique feature is the you see fanned out. that is for dynamic envelope-speed stability. ♪ >> the market potential is very good. we are beyond an initial discussions with a potential launch customer. we think we hit the market correctly. s what is coming up on the program. meet an artist taking new york by storm.

coming up next. ♪

next welcome back to the policy, live on bloomberg radio and also streaming on your tablet. 9:53 or london this morning.

let's talk about art. the youngest artist ever to have a club in new at york city. work now sells for up to $150,000. one of cranny went to meet and this -- minas cranny went to meet him. >> art has to sell for the artist to survive. we have to make a living. this is my job. from being in get zürich? does that give you a different presence of mind? ask people to look at me like they think i am on jobs if i say factor.t it is a huge little things like daily freshness of the layout, the way of life, the privacy. how different is that?

of dollars,ial job dollars, dollars. the us a different way in which it is very understated. comehere does the concept from young artists to develop their own concept of painting. where did that come from? it is quite unique. there are five components. five different components of blue create this. me, -- itlowed to ask is a process. when something is painted, it could take up to 3-6 euros.

i don't like it that much. , but i wanted a little bit more back in it. i like that more already. yes. i like it. minas, nt with -- >> to ex the wikileaks founder has investigation rep over information leaked on the site in 2010. for those on bloomberg radio, bloomberg supposed what is up next.

here, ukraine's foreign -- we're hoping to hit from him in the second hour of the program. stay with us.

about a peace deal patriot russia's foreign minister says there is no progress on a cease-fire in ukraine. julian assange says he is leaving the ecuadorian embassy soon. he is speaking in london now. a $10 billion drug deal. buying the japanese drugmaker. good morning to our viewers in europe.