>> the bp's cash crunch. they enjoy exxon. we will speak to bp's ceo. >> greece's debt plan. they played to exchange a debt in their latest bid to seal a deal. >> rates down under. australia cuts is benchmark to 2.25%. ♪ quickly good morning. you are watching "the pulse.” i am guy johnson.

>> i am francine lacqua. the main story of the day. what is oil and one is greenspan >> the new government a write-down on its debt. -- one is oil and one is greece. borrowing for new bonds. >> less figure out what is going on. a calming effect. hans nichols in berlin. what is going on, hans? >> here is what we know. he spoke to a group of about 100 financiers and laid out a plan to swap the debt by the ecb a european financial stability fund for these new bonds. these new bonds would be linked to long-term group. there would not be an thing on the eye on the upside on the debt. crucially and importantly, they are not going to call it a haircut. the politically difficult, politically awkward term

especially here in germany. here is somebody inside of the meeting and will give you her take on it. they are looking at restructuring of the eu's bilateral loans and leave a imf and private sector debt alone. they are working a case without being specific on how the restructuring will take place. head of research and the greek government plans to present a formal plan by the end of the month and more precision on what they want to do in terms of their spending, their deficit percentage of a gdp. they wanted to be 1%, 1.5% after they pay their debt. creditors want them to hit they'll 4.5% target. that's the standout. the roadshow continues. no plans to visit here in berlin. guy and francine? >> hans basically not calling it a haircut about the same day.

to get germans on board. what other countries that have been through bailouts are saying? >> in yeah, we are hearing out of lisbon. wait a minute, why do we have this to track, to separate deals for we had a guest on earlier really making the case that did a contagion of greece cannot really be contained. you are going to see other peripheral countries talk about this and asked for a similar deal. we should be careful. we do not have a deal yet. we do not have formal negotiations. we have a plan that seems to have the new government in greece walking away from trying to get all of their data waived off and want to swap it for new cars all boss. have not heard anything from the finance ministers on this. -- swap it for new debt. guy? >> coming down. hans nichols, thank you very

much indeed. >> very much in our radar, a cash crunch for big oil. bp joins with falling profits and spend cuts brick can big oil recovered? we speak to the ceo in a few moments. >> alibaba resolving issues with chinese regulators. in a speech in hong kong, the founder said the company has 2000 full-time hit you monitoring -- full-time employees monitoring and have sent people away for violations. >> we do not want to be misunderstood by the world that we are not transparent. we do not want misunderstood by the world that -- it is a platform of unsafe products. >> and google is developing a rival to uber.

it is conjunction with the driverless car projects according to a member of the board. what appears to be a ridesharing app. google has one of -- has the one of uber's biggest backers. >> that the brings up the latest twitter question. when you -- would you hail a driverless car or taxi? would it be a good idea? it is the coming real. >> how do you hail a driverless car? >> these things are -- have -- they would be able to see you. you make a gesture. the technology is pretty clear. i would say maybe easier to hail a driverless car.

>> at that as the twitter question. for more on that, another story including the australian rate cut. -- >> that is at the 20 question. that is the twitter question. that full story coming up. falling profits. bob dudley will be joining the shortly. stay with us for that interview. ♪

>> a welcome back. let's get you company news. as amazon is considering buying radioshack a brick and mortar according to people familiar with the matter. radioshack files for bankruptcy. they near century-old chain and amazon may use it to showcase is hardware. amazon -- sprint has been named a potential bidder. >> the chinese company posted profits that the estimates. smartphone share sales group. >> glen eagle is up for sales. scotland's luxury hotel on the market. it has to capitalize unable with market and success of last year's ryder cup.

it did not have a single golf pun and i am disappointed. we can add them later. >> let's talk oil. prices are of this week. oil is rallying. producers are scaling back output. at what point will the oil market decide on a new program? >> let's bring in our new guest. good morning. >> good morning. >> we are up nicely over the last two or three days. >> i think it is a combination. the markets did like the rate count they came out on friday. we need to know these fundamentals are change on the back end of the outcome, not to the front end where you need to take place. all the we are seeing is record number being built.

and tankers being sold up at a record rate. it is worrying because it's an extra source that will -- it needs to be reckoned with. >> at the moment, you say it has more to do with the union strikes, right question mark huge strides in the states. the fundamental has now really changed. >> the strike offense of the refinery and the pace of building the inventory. it gets faster. if we see the refinery shutdown, more quickly than the maintenance, i think something to watch out for would be -- data will show faster outpace that would've been if the strikes were not there. the big picture his is what opec production is doing? they have managed to produce more than one million barrels

per day. they will not back down. even if prices are at $50 or $40 a barrel. >> what the shape of the curve will look like? as you said prices of ships are probably going to be going up because there are not that many of them. if they are filled up pretty quickly what does the shape of the curve look like? >> it is interesting. at this stage, you are incentivizing a couple of cheap offshore and onshore storage. but now, the point where a million barrel per day is having to find more homes and that can only be incentivized. this is expensive, the cost of storage. it is warranted a steeper fall. that is why more reasons to come.

the demand is not reacting as quickly as possibly. the second half, we see demand react. more vacations were supplied the sweat just as well and adjusting -- where supplies needed to and just as well and and adjusting. trucks coming out with profits and many are going through such a difficult time -- >> coming out with profits and many are going through such a difficult time. [indiscernible] we are lacking investment. is it a real concern? >> in the global oil supply. -- you need global oil supply. part of the reason we have to supply is because yes, we have quite a bit of extra production. that extra production is expensive. the market in a phase where it is dodging what is the correct level which will incentivize

growth but not so much of growth, getting the media correct. we are undershooting right now to shave off capacity. eventually, you are right. 2016, it looks like a constructive markets. a lot of the key projects are looking like a does not going to come online. >> short-term, we have had -- we have stabilized it looks like for the near term. where have we touched? >> well -- i mean, a tough question. where is the bottom? the focus it should run a what the cap would be. at the $60 a there'll u.s. shell will come back again. just to get -- we could possibly touching their to get a shakeup -- touch there to get a shakeup.

again, we do not expected this to rebound because there are so many entries as in the moment. >> thank you. barclays commodities analyst. we have plenty more. will be tough to the ceo of bp. bob dudley. ryan chilcote is on the ground. that interview is about to happen. >> we will see you in a moment. ♪

>> welcome back. bp reported earnings. rising as much ast 5.8%. >> ryan chilcote sitting down with them ceo of bp, bob dudley. >> i am sitting down with mr. dudley. a good day for mr. dudley. earnings up. earnings of 1.6 and you came at at 2.2. nevertheless, a decline. i want to ask you about the oil price for you you said you expected to remain a low. how many years are we talking about? and what kind of range can we expect in terms of the oil price throughout? >> there's a lot of supply and depends on demand and yet we have stocks feeling of around the world. china is going but not as much

and all of this has led to lots of stocks building up. you may see it building up in ships and it can go over quite a while. for us, planning on 1, 2, 3 years and balance our resources. >> what kind of range can we expect? people talk about oil or gets low as $25. as some seeing what will seen and maybe we have found the. where do you see the range? >> the market is not sure. we have seen it go of recently to $45 and now around $54. it has been moving in that area but there are factors. click could be a price signal downward. if we had some other political event could drive it all. iraq moving the price. i do not think bills are fundamental challenges for the

supply and well a lot around the world. >> it doesn't seem like you think we had reached the bottom? >> it seems a it is bouncing around this level and the market is trying to find it. it is not a bad place for us to plan bp around a. >> i understand the dividend is sacred. what would it take to change that policy? >> we do not see for changing the policy, most certainly. rings would have to go for years and years and i believe the cost -- we would have to go for years and years and i believe the cost. the returns, we may be put to sustain a dividend. >> talk to me about m&a and takeover talks and bp being takeover by exxon or shell never ceases to persist. can you completely excluded that? >> for sure, now.

people like to write it, it is interesting. i see no signs heading in that direction whatsoever. >> you can exclude? >> yes. >> acquisitions of your own perhaps a good time for bp are you planning on making acquisitions? >> if you look around the world, enormous rebasing of the industry and companies it is going to go for a while. we are not on the acquisition hunt right now. we need to get our own house in order. if there are opportunities down the road anything is possible. again, big acquisitions not in our sites. quest it is been almost five years since the spill. give gotten a favorable judgment from a judge last month. -- if you have gotten a favorable judgment from a judge last month. what is your best guess for what

kind of find you could expect? >> it is impossible to tell, ryan. we are challenging and will appeal the gross negligence ruling that said we willfully misled officials and it will go on for quite a while. >> and the $43 billion in provisions, judy it needs to change? >> ongoing legal costs, it is over $44 billion. within the provision is as best as we think. >> how long do you see this trial and the spill itself affecting bp? >> the legal system and the u.s. can take a very, very long time. we have settled a couple of things and they have not released sunday issues. we'll work through and work hard to get for resolutions and court. >> for more than a decade? >> some is still in litigation

and will go on for a decade, some of the bigger things will be resolved and decisions made before that. >> let's talk about russia quickly. a lot of talk about the usefulness of sanctions. what you think about the sanctions and they are affecting your fists? >> of they have affected russia but the drop in oil prices have the biggest race on the country right now. an enormous drop on the oil side. this is going to put stress on many countries around the world. i saw the figure that $1.2 trillion of wealth will be transport from oil producing countries to consuming countries. it is great for india and china. it's a great for the u.s. that means it will be stress through many oil-producing countries. because oil perhaps is hurting russia more than the sanctions,

are you telling government leaders they can roll back the sanctions or lobbying to prevent the imposition of more? >> we have made our views that we think sanctions and needs be clear, well to wind, if there used so we know if we can work. we are never going to work out of the boundaries of the sanctions. sanctions are probably not achieving what their objective is. that is the oil price. it is it nobody's interest to have a country like russian really develop longer-term economic difficulties. >> fair to say, you do not like the sanctions? >> i do not think they are particularly effective and they become somewhat personal and i do nothing that is the right thing. >> one of the reasons why you had to the beat in terms of earnings was because the contribution of russia's largest oil company was larger than what

some analysts thought. some thought it would be a complete wash. last year for the fourth quarter, it was over $1 billion. how sure of it can you be? just an estimate. >> the revenues, it is a very good estimate. the countries will announce at their earnings in detail. today they put out a press release explaining the calculation. very very natural, very thoroughly reviewed. i think it is called is-39 rules. if you think the currency has really moved a very quickly, it is intuitive it is all negative for what is happening with laura oil prices. -- with lower oil prices. >> we talked about political risk in russia and maybe we should be talk about the united

kingdom. this country is facing its most uncertain election in a generation. it could lead to 20 other election. how big of an issue is that for a company like bp? >> we have been focused on fiji dollar oil right now. -- $50 oil right now [laughter] we work with the government all the time. we base of the company at $50. >> we talked about the north sea, how would you characterize the situation at $50 a barrel? critically bad? >> if it is like 1986 and it feels like 1986 to may were prices dropped from $40 to nine dollars and stayed down for quite a wild. a lot of stress on the u.k. and norwegian. and there are fields where

economics are moving. decommissioning timing for those and it is quite serious. >> do think the government is going to do enough to safeguard your operations and working on a plan to help oil companies? >> i am sure they are in preparing the speech in march. i will notice it is not just a norwegian, from alberta to north dakota to texas to oklahoma, oil-producing around the world. enormous shock. and government and taxation which always needs to adjust just as costa do. it is not going to bed to make up a 50% drop. -- it is not going to be able to make up a 50% drop. >> maybe a little unfair for me to ask you to draw conclusions based on your first five years but nonetheless, i will.

and ask you what is next? do you continue to stay here for another five? >> i will say that five years goes a very fast. i think we have a greater team and we are heading at the same direction and an enormous challenge again. we are going to going to another phase. i enjoy the work. the management team is energized and doing what we are doing and that's all i am thinking about. >> when the oil price recovers we had one person saying a couple weeks ago it could go to torture dollars, just a -- go to $200, just a turn for it. what you see it going? what's a lifetime torture dollars is quite probable. in the near term -- >> a lifetime, 20,000 quite probable. in the near term, i do not see it. again -- $200 is quite

probable. in this decade of laura oil prices -- lower oil prices, a long time before we see $100. >> like? >> i think 1-3 before we start moving out of the range of $40-$60. >> it could be longer than three years? >> if you look to the past a kid. if projects we do not stop and shell will continue growing storage filling the and other major project. we are the longest industry around. once you start these big construction project, you do not want to stop in the middle and they will continue on. it is the new ones that will get deferred. we will see some ups and downs and we are reducing our capital

by 20% this year. probably will the next few years. >> thank you very much. back to you. i guess you have to say that is the boss of the bp warning of the oil pricing 1-3 years of a could be longer before we see price above $100 per barrel. >> great job. the takeaway, i need to put it at $50. >> significant deflation. that is interesting as well. look for it. watching very carefully. quite some of the top headlines. president obama has outlined a 4 billion debt -- a $4 trillion budget. the budget would raise taxes on corporations and top earners and spend more on infrastructure. >> america cannot afford to be

shortsighted. i am not going to allow it. the budget i sent to congress today is fully capable to -- through spending cuts and tax reforms. >> china central bank is preparing steps to address of the danger posed by capital outflows. the bank is considering widening the ban in which it can fluctuate and fixing against the u.s. dollar. it is subject to a massive divergence on either side of the rate set by the people's bank of china. was australian central bank has cut its key interest rate. australia joins a dozen other countries and easing policy because of deflation risk and three weeks after their unexpected cut, india left their benchmark rate unchanged. >> cleaning the windows.

[laughter] >> i know how his brain works. >> we have seen -- australia's run the big stories. cutting rates overnight. and the german 10 year, lower. that was the first time with seen it post unification we are looking at. a very poor auction. a view on all of this. bloomberg view columnist joins us now. where to start to really. the fact that deals are trading to ecb, japan story in europe. >> japanification. you have a bob dudley saying $50 a barrel is here to stay. shipping prices at a record low. it is not a lot of price pressure going on is the

economy. that is a bad sign for growth. a terrible situation to be in if you are a central banker. india, denmark, australia today. it is getting much harder to talk about surprise interest rate cuts. you cannot really be surprised at this backdrop of central banks desperately trying to get price in it to avoid deflation. deflation is a sustained period off all in and they are terrified of this. you get into a spiral you cannot get on the area i think this is going to continue. >> when we were in davos 10 days ago, more easing around the world and yields will go much lower. i asked how much lower, there are ready so low. >> he is probably made a lot of money in the recent weeks. >> how low question mark is this

the new normal? >> would be to get used to negative yields. -- we need to get used to negative yields. lending to denmark and pain. the thing i am waiting for is first corporate. it will be paid. >> playing with the idea. how it goes down. got to get a sense. -- you have to get a sense. >> we had julius baer yesterday saying we are not too keen. how we're going to figure it out from having a bank account with us. >> mark, who will be the first corporate question mark -- corporate? a scandinavian bank?

>> if i were a cfo of bmw, i would be out of there. make your mark. make your mark. maybe i could've gotten away with it with the majority, i do not know. bmw really where the action might be. >> who need more money. when do we start getting into the next phase. bp is already doing qe. how to make it to work for them. but, it is very simple. what is the next situation. >> the world's biggest role time experiment -- real-time. we have seen. [laughter] central banks, all of the things

being the zero bound do not seem to be working to be very true. i think the real issue is going to be, your currency wars going on in everybody trying to drop their currency lowers her. if you look what the dollar has done a does the bastion of currencies, 18% in the past year. the u.s. is taking the strain of the currency wars and that is ok when you're economy is when the fastest-growing, but as that starts to slow, the federal reserve why are we the fall guys in this? save might try to -- as they might try to talk it down. >> the oil price and it is interesting. we had an analyst earlier talking about the affected not being felt yet.

does she the effect not being felt yet. -- the effect not being felt yet. does that counterbalance the story with the higher dollar? does it mean they can cope with the dollar store? >> part of the dollar story is fed looked like the central-bank. still patient with international development. international development is not backing the idea of a said -- of a fed rise. always a different scenario. all of these countries tried to get a weaker currency held by dollars to rent. >> beating it did they will have interest rate increase?

-- you thing they will have an interest rate increase? >> deteriorating backdrop around the world and the president is saying we need more infrastructure to keep momentum. that's a hard environment to be in with a policy maker. do not forget, they make the statement many years ago to raise rates. i really want to do that. >> certainly not. >> love that question. [laughter] >> thank you somewhat, mark gilbert -- thank you so much mark gilbert. this is called switzerland read drawings -- rejoice the currency war. >> profits improving in the fourth quarter. the focus is in on gory -- on organic growth.

here with us is caroline hyde. capital rising. talk to us about these results. >> as of the moment took over the reins of chairman, has been benefiting. and includes and lawn offices for you not to revenue taking up. this is priced picking up. -- and include loan offices in revenue picking up. that is held to boost profitability in every single markets. they are in 10 markets. profit is up 68% have expected that. when you see which countries are doing particularly well and they have doubled in spain. u.k. looking stronger as well as is chile. brazil, one of their main markets is still an area of weakness.

it is all about talking about organic world. -- organic growth. splash for cash and growing the business. >> yes says anna burton has taken the helm, plenty of changes. focus on the youth in her country. >> i think that is something important. [indiscernible] a new chief executive. have released this new campaign and aim called the -- in spain

called the found generation. upfronts republication. they're offering film money. they will pay the 600 euros a month to. she wants to build. trying to drive up anti-austerity you were told about over in davos with your panel francine. panamas is another anti-austerity. incredibly ramped up in austerity and third digital focus as well.

>> thank you. caroline hyde. >> will take a break. greece's changes. how the new government is going to deal with the obligations. that is after the break. ♪

>> welcome back to "the pulse." >> let's talk more about greece.

a bit of a decision to rich nugent for the call of the rights down or a haircut as they call it on their debt. -- right down or a haircut as a cold on their debt. let's talk about that smorgasbord. australia's chief economist. good morning to you. are we now getting into a phase where we could actually start finding an area in which everybody can start to agree or issue bonds with growth? idea attached to it and permanent bonds, accenture? enter a more practical phase? >> yes, with had a bit of an about turn. not talk about debt write-offs. some of these ideas probably

will not really fly. idea perpetual bonds could violate money financing by the ecb. that is probably a nonstarter. the nominal gdp is quite interesting. that might have something that works. it is quite a good idea to try to tie it in. in some ways what it does been doing is trying to reflect economic reforms and what they have been doing as well. that may have traction. obviously, there on a charm offensive trying to build up support among finance ministers. >> keith, it is working. i am surprised at how much support they have been getting from european counterparts especially germans -- and they are you lonely bunch, the germans. the french and seem to support. they have come in why are renegotiated.

it is a small country but an effect, are worried about the banks? >> a bit of a shift in mood. two or three years ago it was the german policy, austerity. now, since then, we are seeing a broader approach and france, under president hollandee started the move away. not following the budget recommendation. if you look after the actual fiscal settings around europe right now, not as tough as they were a couple of years ago. everybody has eased off quite a bit. the debate has been more towards the idea of putting fiscal stimulus. it is a reflection of 2 things. not delivering the growth and the benefits of austerity not coming through as quickly as people wanted. secondly, the rise all parties like -- in spain.

the politicians across europe can see in their own countries how individuals, small parties are coming through and gaining a lot of support on anti-austerity. >> a few hints he is concerned that support for the euro is beginning to be tested. it is something we need to pay attention to. quickly do. support is critical. it has been reduced. i do not really see a situation where they would unilaterally say, i'm not of the euro. -- enough of the euro. quiz we could take a march harder line -- >> we could take a much harder line on it. maybe ease up on austerity.

domestically, it doesn't work with them, it is politics. >> yeah, it is. they may disagree with that but there's a strong feeling around europe that germany is self could do more to help the eurozone. one of the problems with had throughout all of this is -- always been on the periphery. the competitiveness and all the way through this. germany is such low-inflation economy and run a strong budget surplus, it does not really got a lot on his side. i think it's time for germany to do more. politically, it might be more difficult to sell. the german population are recognized the euro has been a good thing for them. once we had a less we had a last week shows the economy was improving and quite strongly. that's to be a change in germany. >> you take away the sentiment,

people say tomatoes are so much more expensive since we have the euros. and they are selling a lot more exports are increasing. they do not have really much to the plane about. >> that is right. they are concerned about the idea you pointed out about possible contagion other countries. they have to hold a line against that. the falling euro is beneficial to the journal -- a german economy. only point -- and the eurozone after the stress test, the banks are in a position where they can begin lending again. capital has been raised and that will to make quite a bit of difference. qe is coming at the right time and will help support to the connie. if you have the growth in germany and more willing, we need to keep this thing together and make concessions.

>> keith, we'll wrap it up there. thank you for your thoughts. >> coming up, no big macs or fries and mcdonald's? what is going on? that's the case in the latest store in sydney. ♪

>> welcome back to "the pulse." >> the all new bloomberg.com. mcdonald's in australia a test restaurant at the tries out a wide range of new menu items including pulled pork and as for sales. paul allen has the report. >> this is mcdonald's for people who do not want to eat at mcdonald's. this is as close as i am allowed to bring the the camera. that would not allow me permission. the do not want to raise customer expectations. you have to rely on my review. why is mcdonald's so coy? with him as 1000 outlets in australia, it is successful. globally, sales slid 3.3% in the

third quarter. share prices hit as well. they have been on top for so long the only way is down. i think it could work. look at what it is. they have applied their traditional formula in the context of a new point of content. it is fast, efficient, and consistent delivery is what mcdonald's stood for. >> how is the food? i am not allowed to film inside. let's take a look of what i got. nondescriptive box with the logo on it. a wooden spoon. let's take a look inside. what we have here is a pulled pork sandwich which was made in front of me. the pork was taken out of an attractive pot and coleslaw as

well. served with a mineral water. it cost 12 australian dollars. i was happy with my lunch but other reviews were mixed. >> very nice. there are a lot of more people coming in. >> i found the ingredients i had to check up because i was a vegan. it was long. the greens for a soup was 20 or 30. a lot was unnecessary. >> it highlights the challenge make donald's have not changed at consumers have seeking healthier and more authentic food. paul allen, bloomberg, sydney. >> mcdonald's so much more.

the end of the hour. first word is next for radio. a second hour of "the pulse.' >> we will see you in a moment. ♪

>> $100 oil returns. the recent debt plan. exchanging is debts for bonds. rates and down on terror. rates down under. >> good morning.

a very warm welcome. >> a little bit of work. hans nichols is in berlin. looking at all of this. what are they saying? >> here's what they said, they want to take the existing debt owed to the european financial stability fund. >> they will ---

>> they have to get signed off from the germans. no indication. maybe joking of how it is a haircut at the moment they are working without being specific on how and head of research and the plan is greek government by the end of the month a meanwhile the roadshows continue in the prime minister

are you surprised by how much support that they are getting? >> well look, we had to japan and symbolically gave greece a hug. it happened overnight and then some strong words in the u k a warning to greece, the global economy, it could be affected and we have not

rome was to spend more. >> thank you so much. hans nichols with the latest from berlin. >> bp has joined other majors as a reports spending cuts. we spoke with the ceo. he is deadly. -- bob dudley. >> i think sanctions affected russia. i think it's the drop in oil prices that has had the biggest stress in the country. there is a enormous drop in revenues from the oil side. this put stress on many countries around the world. $1.6 billion of wealth is transferred from oil-producing countries to consuming countries

this year. that is a great thing for india, china, indonesia europe. it's good for the u.s. that means there is going to be stress through many oil-producing countries are in --. >> are you telling government leaders they can rollback those sanctions? are you lobbying to prevent the position of more? >> we think sanctions need to be clear and well defined if they are going to use so we know if we can work in or outside the boundaries. where never to work outside the boundaries of sanctions. i don't think it's in anybody's interest to have a country like russia really developing long-term long-term difficulties. >> you don't like the sanctions?

>> i don't think they are particularly effective in they have become somewhat personal. i don't think that's the right thing. >> one of the reasons of the earnings your contribution which was larger than some analysts thought. some thought that was going to be a complete wash. you estimated it to the half a billion. how sure of that can you be? that's better than people were anticipating. >> it's a very good estimate. there is close cooperation between the companies and they will announce -- today they put out a press release explaining the currency change. it's a very thorough review.

if you think the currency has moved quickly, most of the cost are in rubles. it's not intuitive and it's all negative. the cost structure has dropped. >> we talk about political risk in russia, maybe we should talk about political risk in the united kingdom. they are facing an uncertain election. it could lead to another election, how big of an issue is that for a company like tv -- bp? >> we have been focused on $50 oil right now. we have not been engaged in that. we work with governments all the time. >> when we talk about the north sea, how would you characterize the situation there? is it critically bad?

>> it feels like 1986 to me where the place dropped to nine dollars a barrel and stay down for some time. i think this will buffalo stress on the u.k. and norwegian north sea. there are limits moving. that's why we have had to impair some of our assets. i think this is quite serious. >> will e-government do enough to safeguard your operations? they are working on a plan to help the oil companies? >> i think they are preparing for the budget speech in march. it's not just the norwegian north sea. oil-producing provinces are around the world. there is enormous shock. government and taxation does

need to adjust just as costs do. it's not going to be able to make up for a 60% drop in revenue. >> i know your five year anniversary is in october. maybe it's unfair to ask you to draw conclusions based on your first five years, i will ask you what's next? do you continue to stay here for another five? >> five years goes very fast. it's been a very busy five years. i think we have a great team and are heading in the same. i think we have an enormous challenge again. i enjoy the work and the management team is energized. that's all i'm thinking about. >> for more, we are joined by ryan. he says he needs to reposition

his company based on $50 oil. he said that sanctions in russia aren't working. >> it's interesting. i have spoken with him for several years. he was very frank in this conversation. i think he was gloomy when he talks about oil price. he thinks it could take three years to emerge from this $60 price range that oil appears to be in now. it could be many more years beyond that before we see the reemergence of $100 oil. that is negative. we have heard a lot of executives talk about the price of oil. we have heard opec and the secretary-general recently say he sees $200 oil not too far off in --. bob played that down. he is concerned that the oil price is low. he said it feels

like 1986. this environment, the slope -- low oil price environment is one he thinks we could be in for a good while. >> just a quick question, he slammed the door on the idea of bp being bought or bp doing any major buying. >> that's right. as recently as this morning, we had an analyst on saying bp could be consumed i shall which has a market gap or by exxon. he did not see any chance of that happening. i think that was quite unequivocal of him. he did not summit he was prepared to go on a quiz the trail. we have seen a lot of acquisitions.

there is lot of consolidation in the oil industry. he made very clear that his focus right now is on cutting costs and on cutting spending and preparing for what he thinks is going to be a rather extended time of low oil prices which are going to cause bp and the oil industry a lot of pain. >> thank you so much. that is a very latest. he is in front of bp headquarters in central london. >> let's move on. there is a $4 trillion budget from president obama. that sets him on conflict course with the republicans. it will spend more on infrastructure and housing. >> i'm not going to lie. the budget i sent to congress today is fully paid for. there a combination of spending

cuts and tax reforms. >> alibaba has issues with chinese regulators and in a speech in hong kong jack ma has employees monitoring counterfeit. they have sent 400 people to prison for violations. >> we were misunderstood by the world. we are not transparent. we are not a platform for selling fake products. >> google is supposedly creating a rival to the taxi out uber. >> we will discuss that after the break and our twitter question of the day, would you

hail a driverless car. you can tweet is. we will see you and just couple of minutes. ♪

>> welcome to the pulse, live from bloomberg in london. we have an exclusive. as if uber didn't have enough adversaries, they have google.

caroline, how much do we know best and mark --? google is working on something that could rival uber inhaling taxis in driverless cars. >> they are paring a -- preparing a right service of its own. employees are able to use an app they develop themselves to share car rides and --. this is a strategic move by google, likely to be in conjunction with the driverless car project larry page has talked about. it's investment arm, they funded uber to the tune of money and

technology. they supplied them the google data as in the do the passengers of uber. it's very interlinked. now the legal officer is on the uber board. they are hoping that he resigns. they are worried about this area >> i'm trying to understand the motivation or them doing this. they have a ridesharing service. why do they need their own? >> maybe they are fearing they won't win that battle? >> are they not doing a good enough job? >> do we need a taxi service? if you've got autonomous the angles, we will just have a cooling experience.

we don't need a car of our own anymore. we will be able to hail a nearing car that happens to be cruising around without a driver and now we are all in a sharing economy. have they gotten far enough in that vision and that game plan? uber is getting in on the autonomous act. they unveiled yesterday an agreement. they have a technology center and they will work on it. they are working on mapping. they are going to be doing their own traffic data and mapping data. maybe they haven't been thinking enough outside the box. they are so busy fighting fires on the doorstep. have they seen where the future is? we are all going to have haley nats. -- hailing apps. >> this just sounds like a bus

or a tram. >> everything is becoming bespoke. you will share it. how many cars parked? you reduce the number of cars parked and in london or one of the other major cities. it is a bust. >> unless the car doesn't smell. >> there can be some sort of air conditioning. >> what's interesting is other rival reports are coming out saying this is over exaggerating the situation. google employees have developed an app to help them share rides home. this is in a direct threat to uber. they are working on driverless cars and cells with carnegie mellon. everyone is in each other's game. they are in each other's that yard.

the work has to be done. it's a race. tesla is thinking about an autonomous car, audi mercedes. everybody is trying to push this development. it's like apple pay versus pay out. thank you looking to get in on the digital wallet. everybody is working with each other and against each other google has in the game. they also put money on mover in case it doesn't work out. >> is hard to get rid of them. >> we will have to see. >> i'm not sure that is the best insider knowledge. >> thank you so much, caroline hyde. >> you can read more about this story. it's on the new bloomberg website. you can just go to bloomberg.com . >> will amazon bet on bricks and mortar stores?

stay with us. we'll have more on that coming up. ♪

>> welcome back here and you're watching the pulse on the berg td. we are pushing into the suv segment. i can't decide how you pronounce

it. the french carmaker europe's third largest has a new model to counteract dropping sales in russia. we went to the event to see what was going on. >> i am the head of design. this is the new car. the design of the car is very eclectic and sporty. it is extremely sensual. this is new in this segment. it comes in nine colors. this combination of beauty and practicality is the key of the success of the crossover. it looks like you're going to go on an adventure. it is best of both worlds. >> this is going to position

itself on the upper segment. it will be built in spain. it will be sold in europe and in the summer of 2015. it will be the first car produced in china in a new plant being built. >> how many you have to sell? >> many. >> not bad. coming up denmark's biggest bank is by back its own stock. we are going to the company's cfo about his earnings and his view of negative rates in denmark. that interview is coming up very shortly. in the meantime, you can follow us on twitter.

this is the twitter question of the day, would you hail a driverless car? you can also tweak caroline hyde. we will be back in just a minute talking about interest-rate. ♪

>> welcome back to the pulse, live from bloomberg european headquarters here in --. >> greece has retreated or a write-down of its debt. the finance minister has outlined a new proposal for a debt swap. he told a group of financiers that they are wanting to exist existing borrowing for a new bond linked to the country's growth.

they continue their european tour. they meet in italy. they will be in rome and meeting with renzi. >> the bank is considering widening the van in which it's allowed to fluctuate. it is now subject to 2% divergence on either side of the daily reference rate. >> australia's central bank has cut its key interest rate. they join other countries in e-zine policy. it's only february. three weeks after their own cuts, india left it rate unchanged. you have a budget coming up that may have constrained his hand a little bit. markets. it should we do the markets?

>> we have some interesting moves. jonathan ferro has the latest. >> the best start to the year for european stocks since 1989 we are kicking off february the right way. the dax in frankfurt is almost 100 points. did greece just like? -- blink? greek stocks are up over 7% this morning. the proposal is reportedly that greece is offering to swap debt for securities linked to growth. the market seems to like it. greek bond yields seem to like it. i can like this, if i lend you money and you promise to pay interest every single week and pay me back in a couple of months and then you say i have some problems, i want to link my

payments to future pay raises. you just wrote down the value of the debt. you didn't mention the word haircut. the bond market and equities seem to like it. bonds selloff just a little it. something interesting happened this morning, the japanese 10 year is up eight races points. there was an ugly bond auction in japan. not just demand at all. they went above german yields. germany now trades below japan in terms of yields. you are looking at 0.33% on the german tenure field --. elsewhere, there is only one thing people are talking about. it's the ozzie versus the

dollar. it's at a five and half year low. they cut rates to a record low. the currency is overvalued. the takeaway not everybody can have a weak currency. the country taking the pain is the states. >> we spoke to mark gilbert earlier. he said it's like being in alice in wonderland territory. surveillance starts in 25 minutes tom keene joins us with a preview. >> we've got ready across her. we will talk to her about deflation. we will talk about interest-rate. should it be in a measured manner? there is a word from 10 years ago. douglas will keep us smart on economics. he studied with bernanke. we will talk about the budget.

lisa will join us from morgan stanley. she is focused on the currency wars. you heard jonathan ferro talk about that move from australia. that is linked. we will talk to her about currency wars. we've got a bunch of other stuff. we're going to talk bitcoin with the twins. i don't know if you know who the twins are. olivia sterns knows who the twins are. these are role are boys. they were in a college and they went like this. they did this a lot. they are doing this with bitcoin it. >> i remember from the facebook movie. >> and i doing good? >> we need a wider shot. you are doing great. bitcoin has been doing so that late.

we love time. -- tom. he is rowing. >> joined tom keene in 25 minutes and he will still be rowing and interviewing at the time. >> it's like dots under the desk. let's get some company news for you. amazon is considering using radioshack for a bricks and mortar operation. they may use the stores to showcase hardware. >> diageo is teaming up. they hope to capitalize in a booming property market. the ryder cup was posted at their resort.

>> apple has raised $6.5 billion in bonds to preserve its cash toward outside the united states. they issued $39 billion in bonds. u.s. interest rates are poised to increase. >> coming up, the biggest bank -- we will talk to the cfo. ♪

>> is 20 minutes until the top of the hour welcome back. we are live on bloomberg television. the rates are starting a bunch of other countries that have cut rates. there are some countries that are dealing with more difficult issues. we see what is happening with switzerland. we are trying to figure out what's happening with denmark. it's taking a different track and negative rates, we think this the longer exists. let's take a look at this rum mark gilbert. >>walk us to the challenge the denmark races right now.

>> everyone is excited about german and japanese yields. danish 10 year yields, well below. you might see negative on the tenure. they've spent $15 million trying to weaken it in january. there are people who want to be in there. there is a currency war going on everywhere. we are seeing the swiss back in the markets trying to weaken their currency. denmark has three decades of history on it side. if they decide to take you on, they may have quantitative easing. it looks under threat. >> you had a great piece on denmark. today you talked about switzerland.

there is keyword that stuck in my mind. i have seen this movie before. it never ends well. >> i was aching back to 1992. on tuesday night, there was a fantastic speech from john major. the value is option. we're going to defend the pound. 24 hours later that did not exist. these are set in stone until the very second or not. we saw that was richland. they've got the full toolbox they are telling investors we are willing to go as far as we have to go. they will go even deeper into negative rates. at some point, you are going to see them's wheeling -- them squealing. they face negative bank rates. if you are danish savor, you have to pay for the privilege.

that seems unfair. the savers are getting hit. risky. do you really want to be playing the currency market? >> mark, thank you so much. the biggest bank has announced it will buy back its own stock in they are raising dividends. joining us is the chief financial officer. thank you so much for joining us. give us a sense of how difficult it is to operate in a negative rate environment. >> a negative rate environment is uncharted territory for banks. that is new for us. given that it's been underway for some time, we can prepare for that.

especially the large institutional customers, they should get prepared for paying negative rates on deposits. for very large deposits. it's a golden opportunity for a lot of people with are is to take out long-term fixed-rate mortgages at low rates. >> some of your competitors are saying they will not issue negative that -- that's. you have said you may think about it. the jury is still out. which side of that fence do you think you will come down on? >> our short-term bonds trading at negative yields, we can issue bonds on the market side will be financed by bond yields. there is a long way to go before the customer takes our margin

into it count and will pay a negative rate. we have to prepare to deal with that. it will be a while before the customer actually will experience a negative rate and will not come there. can -- this can traded a negative rate. in the short end our recommendation is to take out loans at a low rate. >> when you talk about timing and what happened to the swiss national bank and the repercussions, things can move quickly. are we talking about a year? three months? six months? >> we don't know. currently the customer will not see negative rates. it will probably be a while. we don't know and we do not expect it to happen. >> i was reading a note from

your head of fixed income. he said if the 10 year turns negative, it will stay there for quite some time. this is not an environment that's going to disappear in the near term. >> no. it will probably not happen in the immediate term. we have a margin of eight half percent. taken together, it will be a while we don't expect it to happen. >> can i ask you and then we will move on to the earnings, how often are you in contact with central bank? >> we are on a daily and weekly basis in contact with them. we fully support the activity they are doing in terms of protecting europe.

>> this is a rate that has been around for a while. everybody thinks it's a focus. your sense of your conversations with the world bank, they say they are prepared to that further, is that something you think are going to happen in the next few weeks? we have seen a series of rate cuts. what is your sense of the interest rate projection estimate --. >> if the pressure continues, we will expect the central bank to move. we don't have any specifics on that. >> the bank has come out with earnings today. you have increased your payments out to investors. you still remain below your peers and that. when we you catch up? >> i think we are still in terms

of return on equity behind her peers. i think the dividend increase we announced and the share buyback of 5 billion, i think that's a major move forward. it is a big payout compared to our earlier results. we will taking your by your. in terms of total return on equity, we are still behind her peers. we are working hard on improving that. >> 2018 is the target. i've got -- how much pressure are you getting from your investor base to improve the numbers to be more in line? >> we are closing the gap to the

nordics. we are still behind. that is part of the dialogue we have. i get a feeling that the investment community is behind. that is what we are working on. >> what are your primary drivers going to be? if we exclude good well write-downs, we have seen a improvement. >> we expect improvement through 2015. we expect a profit above $14 billion. that is what we are working on as we speak. >> is there more goodwill to be written down? >> no, we don't expect that. it's based on long-term

assumptions in the calculations. we do not expect anything. >> thank you so much for your time. he is the ceo -- cfo. >> the greek prime minister and finance minister are in rome today. this is the latest leg of your european tour. what's on their agenda? find out. ♪

>> good morning. welcome back. you are watching the pulse. we are streaming on your tablet. 1 >> for what we are watching the rest of the day, we are joined by hans eagles in berlin. the european tour continues for greece's new government. they are in rome today. >> we're going to have to revise all of our greek history. we are going to get into really bad metaphors about the siren song. this is interesting to me about the meeting. they are meeting with mr. renzi. he is the top of his game right now. renzi is the model they want to follow. someone from the centerleft who

tries to find consensus and has built that in rome. this the first time they have seen them doing this trip in tandem. maybe i'm reading too much into it, it aims like they are doing a good cap last that cap routine -- good cop/bad cop routine. >> tough guys wear bright blue shirts. >> they are the same age. they're both orally. -- 40. that's pretty young. >> the big question everybody wants to know is we have done london and paris and rome there's a capital missing. you are in it right now. >> you don't mean brussels. i think russell's is as important as berlin. -- brussels is as as berlin.

this is merkel's strategy. she doesn't want to get into a one-on-one negotiating. there has to be a moving at some -- meeting at some point. if they meet later next week, that's going to be remarkable. we don't have a plan yet. we have pieces of a plan floated in the press. there is not a firm plan that has been offered by the new reit government -- greek government. it is remarkable that the markets are reacting to a plan that isn't even formal or will be accepted by brussels or berlin. >> i think we are missing another capital. the ecb is playing a quiet game at the moment. we are waiting to see if they will issue t-bills for

intermediate financing to keep this show on the road. i think there is a liquidity story as well. epb is a big part of that story. >> all we know is they are monitoring the banks. they were not concerned. this is as of last night. what we have is a good number, 12 billion in euros. that is all before the election. we don't know what happened after. that is 11 is going to be crucial to see whether the banks have any sort of liquidity. >> hans nichols with the latest. this will be the showdown for the new greek government. >> i am waiting for somebody to suggest three -- greece just go to kick starter. >> next, tom keene and his team.

>> the winkle lost twins are on the show. what a show.

>> greece links as new leadership right down to debt exchange, merkel says athens continue structural reform. measles was declared illuminated

15 years ago. forget the super bowl, go to the ballet. arts and culture is big across america. good morning, this is "bloomberg surveillance." it is tuesday, the day after groundhog day, i am tom keene with olivia sterns and brendan greeley. let's get to our top headlines. >> greece continues retreat from its call for the euro area to write down debt. yanis varoufakis met in london last that with about 100 financiers including u.k. chancellor george osborne. reportedly proposed to exchange existing for new bond link to the country's growth. the man who led greece's debt negotiation in 2012 says the country does need a monist -- modest amount of using. curious speaking to his