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. good evening to those in asia.

a warm welcome to those waking up in the united states. i managed words. this is pulse bang." anna edwards. this is pulse bang." "the pulse." hans nichols is on the ground following developments in berlin. spoken to the ukrainian foreign minister. said there wasn moderate progress. he was very careful and he delineated where the progress is. it is difficult to see after five hours of talks last night in berlin just where precisely real progress was made. maybe a little bit on border security, controlling the border. both foreign ministers said that some progress had been made there. the ukrainian foreign minister really made a point that all of the actions -- all of the words

that were committed last night need to be followed up with actions. that is a crucial point. at this point, we have talks that the foreign minister level. the ukrainian swap this to escalate and they want them at the presidential level. mr. poroshenko and mr. putin. that is where the decisions are being made. on this crucial issue of the aid convoy, the ukrainian foreign minister had no actual intelligence that it would be coming into ukraine within 24 hours or 48 hours. all of the holdups are on the russian side. it seems to me, after listening to them talk this morning, that there is a whole lot less reason to be optimistic than last night than the foreign minister of the foreignhen minister of germany claimed there had been some progress. it is difficult to see where that actually is. everybody is going to go back to their home government, consult,

and then they will wait further instructions. >> you have to wonder what markets are looking for -- equity markets around europe making gains on reports of progress being made between these negotiators -- but you have mentioned the convoy. what else is happening on the ground? we have seen reports that there have been some jostlings for power over the weekend. >> the ukrainians keep saying that there is shelling and incursions coming in from the russian side. they do not see the situation on the ground the escalating at all. -- de-escalating at all. at the press conference in berlin this morning, mr. lavrov, the russian foreign minister, said that the convoy was a ukrainian government convoy that was moving toward rebel positions and that rebels boarded it and destroyed it. i ran that by the ukrainian

foreign minister. he said that is hogwash. he said it is a convoy that came in from russia and the ukrainian troops defeated it. there is not even certainty or agreement on who this convoy -- whose chain of command it was in, who it was reporting to. there seems to be quite a bit of tension if not real fighting on the ground in eastern ukraine. foreignve these four ministers convening around a table. they are pushing for this to turn into something with a little more clout. the presidents rather than the foreign minister's to discuss things. at least they are talking and that is the positive people are keen to this morning. are talking and there are prospects for future talks. these talks did not break down into a stalemate by any stretch of the imagination. yes, there could be the opportunity for additional talks.

pavlo klimkin was very clear that he would take his information and go back to his president and await furtherance ructions. that is what foreign ministers do. -- further instructions. that is what foreign ministers do. you have to trust your counterparts. they still trust each other. there is an opportunity, the groundwork for national talks. >> thank you very much. hans nichols from berlin. stay with us. we will bring you that interview with ukraine's foreign minister. hans just conducted that interview moments ago. we will bring that a little bit later. let's turn our attention to company news. trading.umped in tokyo roche is said to be buying out a japanese drugmaker. roche trying to get

here? a veryai has been significant part of roche over the years. japan is the world's second-largest market for pharmaceuticals. chugai tends to do big drugs for big markets. we usually hear about orphan drugs. these are things that are quite widely needed. two very well known cancer drugs on which roche and chugai partner. roche is looking to take full control of those and of the cash flow. >> do they need to be taking part in this m&a frenzy? they seem to be motivated by slightly different things. the bit they already own is really integral to roche.

>> this is different from some of the other deals we have seen in this space. n you get a wave of m&a going boards, chief executive start to think, where is our deal? are we going to miss the boat? the market support for consolidation and making big strategic moves? roche has done a bit of acquiring this year. but it has been largely smaller stuff. there are $200 billion-plus company and have enormous power if they should choose to use it. roche has been on the sidelines in terms of the really big transactions. this could be their move. >> they have done some big ones in the past, swallowing up genentech in 2008. are we going to see a continuation of mergers and acquisitions? >> that is certainly what you do

here out here in the city and on wall street. i think there are some question marks. certainly, the economies in the u.s. and europe, there is a bit of hesitation about how durable this recovery is. all, we do have the possibility that interest rates will go up at some point, though it seems rather distant. that could make deals harder to execute. there is no question that boards and ceos are thinking big thoughts -- whether they had to get -- actually get to making these deals is another step in the process. >> let's bring you up to speed. julian assange, the founder of the wikileaks website, has been giving a news conference from the ecuadorian embassy. he said he will be leaving the embassy sent. -- soon. little detail around that, but he has said that. the wikileaks website put up

military documents and 2010 and has made them the subject of the u.s. authorit ies'investigations. an update onyou what to expect from the week ski events. ♪ -- week's key events. ♪

welcome back to "the pulse." let's check out what is happening on the currency

markets. focusing on the pound this morning. here is where we are trading against the dollar. that shows you where the margin has been over the past week. you can see some of the bigger movements we saw at the middle of last week. england governor telling the "sunday times" said that he will not see an increase in real wages to act on interest rates. thehad some data out from housing company here in the u.k., talking about how london and the u.k. as a whole have seen month on month and house prices -- not unusual to see that in the summer months, but more than some people had expected. that is spooking a few people, those who are long on prophecy in the u.k. what do we see ahead for the pound? latestmore data or the minutes from the bank of england there out later this week. we will have central bankers speaking at jackson hole later this week.

let's talk to jeremy stretch. jeremy, good to see you. >> good morning. what mark you make of carney at the bank of england has been saying of late around wages? on the one hand, what happens to them seems to be important for interest rates, but on the other hand, they are not. demystify this. appears that the bank of england were putting greater stress on wages as a keen marker in terms of policy. seem to have found the weakest part of the labor market cycle as a justification for what was happening and to react aggressively. it seems to be going back on the comment. it is a flip-flop or whatever you want to call it. that is causing a great deal of uncertainty. the problem is that as market

participants, we focus on when the start of the cycle begins. that is the real element. that is what we are trying to price in. mark carney is much more concerned about the pace of the direction beyond that. that is the real text position. >> -- juxtaposition. >> why not think more about the pace of the rate hikes when they come? he said, we hope they will be gradual. why worry so much about when exactly the first rate hike comes? >> you are right that the emphasis was gradually limited and he continues to do so with each and every utterance. the markets are looking for deviation or changes in policy. we had this prolonged. -- we had this prolonged period of monetary policy in the western economies and now we are looking to see when that process starts to unwind. it is relevant how quickly the

progression starts to come. it is all about who is going to be the central bank that first says, we need to see some degree of modest normalization. that is really what the markets are waiting for an focusing on, not just in the u.k., but the u.s. in jackson hole as well. >> when do you think this will start coming through in the bank of england minutes? will we start to dissent coming through? ? we have the looming scottish referendum as well. quite a lot of uncertainty. >> there are a lot of geopolitical uncertainties. a think if you look at the pace of growth in the economy, you could argue we are going to use

of spare capacity quickly and i t is a difficult debate to measure that. we have seen quite vociferous andnds for hikes maintaining easy policy for a prolonged period from former members of the bank of england. nisr has seen the gdp indicators generally being pretty robust. tightening the labor market will start to encourage dissent. maybe not this way, but signs of the dissenting reflected in minutes will be enough to encourage sterling a little but after a surprise pullback tomorrow. focust is going to be the of jackson hole? the central bank leaders from around the world are gathering in the u.s. at jackson hole in wyoming to talk about what?

to talk about normalization of interest rates? >> the title of the symposium is reevaluating labor market dynamics. this is the key benchmark. this is what the central bankers are geared around. we know about the job policy mandate. the markets. about job openings were 13 year highs. job openings going up as an indication that the labor market is improving. pragmatic janet yellen respective, -- perspective, we are not going to see her waiting for all the slack to be used up before moving. hear comments from both sides of the atlantic about how

this recovery does not look like recoveries of the past and that seems to because adding economists and central bankers to really ask questions about how these economies are recovering and what role wages played in all of that and productivity -- a lot of different themes to grapple around the labor market. >> absolutely. that does cause a great deal of consternation. you are right. you can argue that it may be due unemployment coming back into the labor market, the low-paid jobs. there are also influences in terms of demographics. have the baby boomers retiring in the u.s. there are lots of crosscurrents that make it much more difficult to evaluate in terms of a normal labor market recovery, which we would normally expect to see growth and employment leading to growth in wages. there is a much greater lag and that is the difficulty to markets and policy makers. >> thank you very much for

joining us, jeremy. >> thank you. >> jeremy stretch. let's talk about technology. tech trends or changing the hotel industry. provide like airbnb alternative accommodations. hotel groups are working on improving the guest experience through social media. cory johnson finds out more. there is something magical about a great hotel, a sumptuous lobby, a cozy bed, perhaps a beautiful view. the real magic in hotels today is technology. ♪ high-tech initiatives are completely remaking the industry. 40% of hotel rooms are empty at any given moment and that is a problem. social media will draw in return

customers to hotels. >> it is an emotional connection. >> commune, the high-end boutique hotel group, has become a social media addicts. >> we have five social media managers for the company. they are assigned per brand. they manage the flow of traffic to rid -- traffic. will send a celebratory bottle of champagne to someone who tweeted they just got engaged at a certain hotel. with the rise of internet booking, the boutique hotel business exploded. are not 53 percent of hotels. technology in the hotel can still be a challenge for boutiques. a big brands are now 53% of foothills. -- hotels. cannology in the hotel

still be a challenge for boutiques. the best user experience is getting back to basics. hotels still do not offer free wi-fi. i will not name any names. the f-16 air force thunderbird is experiencing -- preparing to take flight once again. we will discuss this. ♪

>> welcome back to "the pulse." live on bloomberg television and streaming on the ipad and bloomberg.com. the thunderbirds are u.s. air force squad. they lost funding last year due to budget cuts. now they are back in the skies. what does it take to run this elite team? adam johnson got the opportunity to go up in an f-16 and see with the thunderbirds are all about. they all fly with us, go home, and take a nap.

we hope you don't get sick at all. ♪ >> are you ready to go? >> i'm ready. ♪ you ready to give it a try? >> let's do it. how are you feeling? >> feeling good. ♪

[laughter] [applause] >> feels good to get out of that. ♪ >> rather him than me. i'm surprised he could talk. it is time for hotshots. being a motocross athlete is no walk in the park. it it takes an immense amount of training to prepare the body. , the formerh africa sit down and stand up jet ski champion spent some time shredding the waves. he spent the afternoon throwing a few backflips and kick stands. got a big boost in their quest to become the indycar champion. montoyaoff juan pablo to win. goal.ep closer to their russia's foreign minister says there was no progress on a cease-fire in ukraine. we will bring you hans's

interview with the ukrainian foreign minister, pavlo klimkin. you can follow me on twitter. see you in two minutes. ♪

>> welcome back to "the pulse." live from london. here are the bloomberg top headlines. kurdish forces have taken control of most of the country's largest dam near most so -- mosul. this reverses some of the gains made by isis. germany's foreign minister says progress has been made at truce talks in berlin to end the fighting in ukraine as kiev says

that its forces destroyed half of an armored column from russia. the red cross said it wants safety guarantees before it intercepts an aid convoy from russia. mark carney says the bank of england may raise the key interest rate before workers get pay increases. it has to have confidence that the real wages are growing. minutes from the july meeting are due this week. despite all this, geopolitical tension, markets remain. at the map behind me, you see a translation. the aex is almost up 1%. as the foreign ministers get together and have discussions,

it is translating through. what you are still seeing his money going into the dollar. this is the way the dollar traded this morning. is progressively changing direction. we are going toward jackson hole at the end of the week, which is the kansas gathering them of the kansas city gathering of fed governors. of thinkers or a collection doves as the case may be. minutes himreserve of the united kingdom minutes. -- the federal reserve minutes, the united kingdom minutes. you have the country waking up for breakfast on a sunday morning, you get the "sunday times" and another trashy -- but anyway, and there is mark carney. he did an interview in "the sunday times." he said, we're possibly going to move and wages will come along

behind and more or less we have a consensus on a committee, we are united, we will be gradual unlimited. the more you hear that man tell you that it is going to be gradual unlimited, hikes, when they come, the more often the rhetoric changes, one has to wonder whether it's any substance to gradual unlimited. -- gradual and limited. back to you. >> there is no pleasing some people. it will be time for "surveillance" and a couple of minutes. what have you got for us today. >> happy monday to you. it is a monday of negative interest rates in germany. we will look at that. we will look at the 10-year yield. ands well under 1%

sustained under 1%. one of the ramifications for europe, the united kingdom, and america. we are thrilled to bring you a series of guests to synthesize all that is going on in the markets. away from that, we will be focused on the serious events happening overnight in st. louis, missouri. jay nixon governor bringing up the national guard moments ago. riots and protests in ferguson, missouri. we will touch on that. the owner of the sacramento kings will join us. he runs a big tech operation as well. we will talk to him about fast data, big data, and the future of computer technology in america. >> westport meets tech. will you be sending up any more f-16s? did he volunteer for this assignment?

is this every boy's dream assignment or worse nightmare? >> he has them a lot with our airline coverage. i think he was enthused to do it. he said it was really physical. the one thing you will get from adam, as he joins us this morning, is the physicality of what he did in going up in the f-16. he does look a lot like tom cruise does, so i think that have a little bit to do with his selection. [laughter] thank you very much for that. let's head to the middle east. iran is one of the largest close markets and the could be opening -- closed markets and it could be opening for business. thank you for coming in again. thistock about the size of market. how big is the opportunity for european businesses, u.s. businesses if and when we see sanctions lifted on iran? been described as a huge opportunity.

a market of 80 million people who have not had any access to western goods for a decade. a lot of people describe it is similar to turkey before its boom of a decade ago. theey has been one of greats in emerging market growth stories in the past years. ts, as of the min dubbed by jim oneok. how close are we seeing to market opening up -- jim o'neill. how close are we seeing to the market opening up? >> the fact that talks were extended is seen as a positive time. most experts think they will reach a deal over the next four months or so. that deal will include some significant lifting of sanctions. u.s. and iran find their interests aligned a little bit in the middle east right now , i guess that is playing into the timing right now. >> i think people are hopeful

there is an alignment of interests between the u.s. and iran on the islamic state fighting in iraq. that may a sense that play into negotiations and make it easier for them to reach some kind of deal and if they do reach some kind of deal, the market could open up overnight. it is the last great frontier market opportunity that could open at the flick of a switch. >> which companies are going to make a in iran? -- hay in iran as soon as it opens up? >> oil and gas are the big opportunities. they have the fourth largest oil reserves in the world. the second largest proven gas reserves. particularly to get the gas out of the fields would be a huge opportunity. steel is another big opportunity. infrastructure development going on and huge infrastructure needs.

for international steel companies, big opportunities. autos are a big opportunity. a lot of automakers are saying it could be a 1.5 million vehicle per year new market. the french companies have big market share there until fairly recently. they left in 2012 and they are under the terms of the interim agreement which has lifted a few sanctions. they're planning on going back in. it is a big opportunity. consumer goods, consumer products. 80 million consumers who have been deprived of western goods are eager to get those goods. >> the banking sector has found if yout it does cost don't make the right decisions around sanctions, with regard to the u.s. authorities, based on the big fine to bnp paribas. will companies speak openly to you about it at this point? >> a lot will not.

they are very afraid of saying the wrong thing or doing the wrong thing and crossing the line and getting in trouble with the u.s. authorities. companies are being pretty circumspect about what they do. there is a lot of activity and that he will call a coyany and they are very with blanket statements. they are being careful about what they say. they do not want to be hauled in front of u.s. congressional committees. it is a bit tricky. >> thank you very much. an interesting conversation about iran and whether we will see sanctions lifted. coming up, with one month to go before the critical vote in scotland, campaigners are making the final push on both sides. will an international -- independent scotland remain attractive to investors? ♪

>> one month from today, scotland goes to the polls to decide yes or no on independence. joining us now is business for scotland's managing director, who is pro-independence for scotland in the whole debate. thank you for joining us on bloomberg television. one month of campaigning left. your campaign is not ahead in the polls.

what are you going to do in the last month to turn things around? make clearg i would is that actually the polls are narrowing. that show at weekend that the yes campaign and requires a 2% swing to get it a win. the focus has been making clear to people that scotland could be l independent nation. david cameron has said that as well. it has considerable strengths onshore across a variety of and of course it has considerable strengths offshore. once people understand that scotland could be a successful independent nation, they are able to think, should it be a successful nation? >> maybe it could, maybe it

should, but there are so many uncertainties around what people are voting for here. they are particular about the currency. there is not much of a discussion about what plan b would be. after the vote, everything is up to be decided. how can business feel so positive about a situation that is still so uncertain? >> remember that this uncertainty is seen as a political strategy. leaders, webusiness think that there will be a currency used. stop is nothing to scotland using the pound. it is as much are pound as the rest of the u.k. we know that for there not to be a currency union, that it would cost england dear because scotland is the second biggest

trading partner and there are about 5 billion pounds worth of trade every year going from england into scotland. there are 700,000 jobs dependent on that. there are about 40 billion pounds worth of trade on the u.k. balance of payment and if that were to be taken out, that could conceivably cause a run on the pound and economists and business leaders are much more relaxed about the currency union. it is becoming much more recognized. there is a position of bluster being considered. when all of the politics is over, at the end of the day, people need to trade. we are going to carry on trading with our friends and neighbors. that is the same position. it is for that reason, he does not need to set out a plan b. political parties

in westminster have said that they want to agree to it. you say that as a bluster position. they be they are weighing the cost of trade and having a different currency and scotland versus the cost of going into a with the country with whom there is no fiscal integration. the eurozone crisis is a currency union that many may .2 -- point to as a cautionary tale. that may be why scotland is not officially allowed to use the pound if the yes vote comes through. is there no recognition of that argument amongst those who want to see independence? to be honest, i'm struggling to hear you a little bit here. i will answer based on what i think i heard. what i am seeing quite clearly is that this is a political that the parties are

adopting. let's assume there is a yes vote. , because of the international trade between scotland and england, the decisions need to be made that suit both economies. they are an optimal zone. they will need to continue to trade. this idea that scotland is going to become a foreign country is ridiculous. this is about having control of the optimal number of fiscal users to take on policies to suit our business and recognizing that we will continue to do trades and it is as much are pound as the rest of the u.k. the other thing i would point out that i would suspect would level the heads of westminster little was that the bank of

has helped build up the pound over the past 300 years. if scotland is not able to have a share of the assets, than the scottish government says, fair enough, then we won't show the liabilities. i can see for a minute that the u.k. treasury is going to be happy with all of the u.k.'s debt. they have said to the market share, we will run what belongs to the u.k. and they regard themselves as the central state. they are suggesting they would be happy to walk away with the debt. i think it is bluster and in reality it is not going to happen. it is the last-ditch political campaigning to refocus. >> thank you very much for joining us. michelle thompson, managing director at business of scotland. television crime dramas are

popularized -- popularizing police work. certain clues have remained unusable until now in real forensic science. police are now able to crack real mysteries. it thomas and farrell reports. ports.athan ferro re tothis infrared cameras able look at objects and high-definition in three dimensions. >> with the analysis of use 3-dints, we can now reconstruction graphics to examine the dynamics of what happened at the scene of the crime. >> re-examining old evidence is only part of cracking the case. police also have to find a suspect. thiswho murdered 13-year-old into monday 10?

using a new forensic technique called touch dna, italian police were able to pick up microscopic cells of foreign skin from her clothing. they analyzed against 22,000 people, resulting in one match. a 44-year-old carpenter. these techniques are helping to shed light on cases hindered by the passage of time. experts are concerned that touch dna cannot always provide accurate results in some crime scenes. >> if someone touches an object, i can find a trace of dna transferred from that hand. it also could have come from the person touching another individual. it is the central to a valuate how the traces got there in the first place. reasons, the dna forensics has to be judged as crucial evidence for it to be used in italian court. even with these limitations, there has been some breakthrough. despite him denying all charges,

the ford -- the dna evidence will be used in the murder trial. year, 28 cases were solved because of these new forensic techniques. reinvestigation's -- investigations reopened, italian justice does not easily forget the past. >> coming up, truce talks as the u.k. and -- ukraine crisis enters a new phase. we are live in berlin when we come back. ♪

>> welcome back to "the pulse." let's check in on the currency markets. this is where the pound is trading against the dollar over the last five days. you can see the big news at the beginning of -- middle of last week, sorry. over the weekend, mark carney, the governor of the bank of england, giving an interview to "the sunday times. he suggested that real wages would not necessarily have to go up to see interest rates go up in the u.k. we had housing data from

overnight that shows drops month on month for london and the whole of the u.k. the bank of england minutes will be the big event in terms of currency traders agendas and the middle of this week. caroline hyde is that the ecuadorian embassy in london. julian assange of wikileaks has been holed up there for two years. what is the latest? is quite the media scrum down here outside the ecuadorian embassy. waiting to see when we will see julian assange walk through those doors. he has said he could leave the embassy soon. is that today? is that tomorrow? we do not have exact timing. shrouded in mystery. he has been avoiding the potential order from sweden. why is he leaving now? many assume it has to do with

ill health. he is rather cryptic about the reasoning. it was not the reason currently being widely reported. know when he will be means hend if that will immediately have to be extradited to sweden to face allegations of a sexual assault dating back more than four years . he will be that extradited further to the united states. all of this is surrounding what he found that wikileaks, which gives access to thousands of documents. highly sensitive information that was given to the public regarding the united states' dealings with the wars in afghanistan and iraq. the u.s. confidential discussions regarding their views on certain governments.

i will stay here. >> caroline, thank you. we will see if he is arrested if he decides to leave today. that is it for "the pulse." goodbye. ♪

activates a national guard. this, after ferguson's police come under assault, including

gunfire and gasoline bombs. kurds attacked the islamic states. the u.s. assist with airstrikes. do you think your name should be on the plaque? yes, i am african johnson. -- i am maverick johnson. this is "bloomberg surveillance." is monday, august 18th. i am tom keene. mavericks well, johnson. >> maverick or iceman? >> i will take either one. get to the brief. >> global real estate markets took a hit. london prices dropped the most in six years. in china, new home prices dropped in the majority of cities. that has been the key