>> a new banking boss. stanley chartered names bill winters as ceo. >> depending on draghi. >> out with the old and in with the new. egypt is set to reveal a capital -- a modern capital new city. a bloomberg exclusive. >> good morning. you are watching "the pulse ." i am guy johnson.

>> i am francine lacqua. a flurry of bank news. standard chartered has named a new box, bill winters. >> war on the this. caroline hyde. caroline, everybody has been sinking about who will take the job winters has been a perennial for every bank to be the next boss. you wonder why this one. >> they say in a statement that he is a globally respected banker and he has the right skills to drive it and conduct. standard chartered has seen a series of scandals notably sanctions violations. this is why bill winters is coming in as a new ceo. he was really co-ceo of jpmorgan and went to set up his own asset

class in 2011. there you see it. on the biggest independent commission on banking. a man who knows regulation, a man who knows response to the new working environment. every single tank these to be negotiating. -- every single bank needs to be negotiating. the logs ever serving ceo in u.k. history since -- the longest serving ceo in u.k. history. he almost tripled the assets to $90 billion. very focused on asia in recent years since taking a tonal and hit by falling profits and a series of scandals. a new man at the helm and management shuffle in as a totality. the chairman is to go in 2016. he is to leave since being there

since 2009. they are getting rid of the head of asia been at the company for 15 years. he is going to leave in april. in fact there are three longest-serving independent nonexecutive director or's are all going to be leaving. a new time, a new place, a new shape at standard chartered stop >> let's talk about rbs. the bigs bailout lender with the 7th annual loss coming off the u.s. unit and the bank has warned of more tax cuts to come. none of it is hugely surprising. the restructuring continues. >> to 3.5 billion loss is not surprising and we knew they would take a charge and that u.s. citizens business. this companies is focus on just

the company is focused on slimming down. exiting middle east africa and going to remain in asia a vastly reduced. they will remain in the united states but vastly reduce. there will be job losses to come. materially higher restructuring costs. that same story, the restructuring is continuing. they managed to all for the portfolio. the u.s. alone portfolio and $36 billion and got $3 billion from mizuho. reducing their risk weighted assets and their bad bank assets. lots of change and rbs. they are becoming safer and more boring and rbs overall. 13%, that is the key number. the investor base is us. 80% owned by the taxpayers.

improvement in capital and they will pay a dividend perhaps a share buyback and they see the potential for material distribution. trying to woo the consumer and shaking up their own market. a new chairman announced, howard davies/ he's led the commission on you -- on u.k. airport capacity. he too, knows how to negotiate with the government. rbs' ceo saying i will not take my one million pounds annual pay package. he doesn't want it to be a distraction. in fact, none of the executives should be getting a bonus. notably, there on banking bonus pool has been slashed. that pr them keeps coming.

>> bosses were grilled by parliament. over the swiss banking private unit is said it was the product of a different era and he addressed while he -- why he was paid from a company through hong kong. >> it was about privacy. it had no tax purpose whatsoever. >> we are going to bring in an industry expert, chris wheeler. good morning to you. >> good morning. >> let's start off with what is happening at standard chartered. winters is a hit of the perennial name. how are you surprised? >> quite a bit surprise he took any job and he made it clear a

few years ago when he was linked to deutsche bank that his private equity business with the of assets and quite enjoying being out of the main banking which he was in in a big way. >> what kind the ceo will he be like? >> what has impressed me is he is an implicit communicator edited to put things into a straightforward language. standard chartered has been suffering that has such a collapse on money laundering and subsequently, when you have a widespread empire you have to keep it going through the whole unit. >> he used to come here quite a bit to give interviews and a very dynamic, very energetic young. >> i expect he may have had a tap on the shoulder from the bank of england, please take this job. >> he is been linked to so many

jobs, why this one? >> stability and he would've seen it as an unusual job. that banking commission and on the lines of it would be helpful if we had somebody like you coming into the space. >> what do think it will look like a year into his tenure? >> it difficult to say because his background is investment banking and it looks like they will cut back. so i actually think of being a pragmatist, it will go back to what it is good at trade and try money-management stuff in terms of money flows. i think it will look at high margins and wealth management in asia and a lot of competition. i think it will step back from china to compete in a big way.

>> what does it say about -- >> a very, very good job for a period of time and he has been unfortunate in money-laundering and was suspected in some problems. and the competition that emerged in the business was started to hurt them at some of the lending activities which is a have been quite strong because they know the markets in asia. i think it is really sad in a way because he had a fantastic career. as i said, i think that is it -- >> we are mired in this huge banking scandal and we heard the ceo trying to explain how it came he was paid a panamanian country. >> i'm not sure. i sat through the j.p. morgan chase on tuesday listening to the same arguments if the banks

should be broken up stop -- broken up. you can say the same thing about hsbc. the problem we are learning is a lot of businesses, businesses that were perfectly looked perfectly fine precrisis in the 1990's are no longer looking fine. swiss private drinking -- banking where it was not allow this like patriot acts and money laundering now it is different. the fact is that issue. can you manage the big banks? that is the issue. really holding on to the business underneath. jamie dimon was trying to push how well he thinks his team worked together as splitting businesses. stuart gulliver will probably want to say the same. all of the press from activist

shareholders. >> they can deny there is a discount and open to question. >> when was asked, he said the markets are -- quite funny from somebody in a big markets business. anyway. >> it is the complexity that people are focusing on and the inability and i heard time and time again yesterday, i do not have line of sight on it. you just wonder for a management team that is running a business so big and so complex for them to say again and again "i do not have line of sight," and you wonder if investors will say the risk is simply too big to work with the management team that doesn't have the ability to control details. as a result, regulatory fines. isn't there an argument that says we have now reached the

point where it is and it has a direct feedback into returns and also the fines paid? >> the will keeps turning. we have to get back to the crisis. jpmorgan, -- >> i remember that. >> all of them consesnus buys and the world has changed. the big up -- in the pickup of capital because returns or -- are more hard. look at jamie dimon, he called -- un-american as suddenly said we better get on with it. suddenly been hit with a higher surcharge than people expected. what he was doing his chat completely used as saying, we keep going on with it.

>> hsbc is a different beast because it's perceived as being more european. investors of what allow -- investors would allow for -- >> european businesses will be small and having that footprint in asia and less fashionable at the moment you can certainly come back. the sheer geographic split and the sheer business split. jpmorgan, apart from the united states. in a way, you could put it in a box and save investment banking we have to work about. stuart gulliver as we saw switzerland historically the hong kong property market and where to begin a china? and we are back in switzerland. the difficulty of running an

enormous company. >> christopher wheeler. >> counting on draghi. varoufakis talked about how the ecb could help this country avoid a default. >> the manage heart to shaking up the airline industry. >> our twitter question. would you fly ryan air for business? tweet us and let us know. ♪

>> the ecb could simply hand over the money to be imf, pressure repayment. the ecb recognizes it is money and money that not a borrowed money but our money and overpayment to the ecb. why not simply have the distribution find it among themselves -- find it among themselves in a way of transferring the funds? >> that was yanis varoufakis talking about helping the country avoided default. as the bank deposits are starting to flow back. >> yesterday we had a deposit flight back 700 million to be precise. >> 700 million euros?

>> came back on the news of the bridge and i have not checked the numbers. >> and you are still down by tens of billions. >> once you turn the tide, you hope. >> let's go to athens and talk to marcus. what is the takeaway that added another piece into this puzzle? >> of course, the news of deposits coming back in is certainly new and encouraging if confirmed in a will be a well before we get official confirmation. one of the big takeaways was that the solution to the funding of imf has to be repaid and solution has not been found yet. a second takeaway he is remarkably -- about this

prospect and not too concerned as say why go through all of this reaching an agreement to just torpedo it in funding. overall it is very -- it is worth noting that the nationally, it has not been a lot of people talking about this deal as a complete capitulation on the greek side. as a really talking a good talk and saying this is not the case and what we have achieved and given ourselves a breathing space to really solve some of the big things. whether that will be done between now and june is a different question. >> markets, thank you so much. marcus benasson the very latest. one of the important things is

he is counting on the ecb to really help with the funding gap. >> a good quarter in the u.s. and a strong dollar. we will break down deutsche telekom's numbers when we come back. ♪

>> welcome back to "the pulse."

>> federal reserve chair janet yellen has proposed to lawmakers about the financial services committee. despite congress' demand yellow highlighted how the said is fighting inequality. >> what we can do is try to ensure a generally stronger labor market where it is possible for those who want to work to find a jobs in a reasonable amount of time. we can't determine the wages associated with those jobs or what sectors those jobs will appear in. but the policies we follow him in the general state of the economy have an important influence on the overall strength of the job market. >> africa's finest minister has been explained the issue about

racing in contacts. he said that -- a raising income tax. -- he said that -- >> [indiscernible] raising taxes because we have had time to deal with the issue. to do that just expand income and more efificient in that space. >> s strong growth in the u.s. it is growing t-mobile usa business to boost its bottom line. >> the latest from international correspondent honda nichols.

>> you look at the current forecast and they are making in 133 handle. the dollar at the current level they will have more and that brought them up to 18.4 billion. it was a good quarter but would look at a lot of the growth, it was outside of the u.s., 60% of revenue outside of germany. 20% increase in revenue from the u.s. alone. a .5% increase in revenue. overall, a pretty good quarter. the big question, what would they do with the u.s. arm? maybe tying up with the dish network. dish network or sprint or merger with sprint may have presented. they are talking about that. right now it looks like t-mobile usa is spending a lot a

cash back to the german parent company and some pretty strong numbers and really solidifying t-mobile's place i had a vodafone in the european -- ahea of a vodafone ind the european market. >> at they are thinking outside of the box signing with a bar to be. >> you buy a phone and it is really about a company, a telecom company expanding into the attack world there -- into the tech world. data will be vouchers. airbnb has a growth structure and once to get it onto as many devices as possible. this is where they are thinking differently and more like a tech company in terms of traditional telecom company than they were. >> hans nichols. >> a new capital cities suggest is close to unveiling a new

cairo. we will ask about the plan. a bloomberg exclusive. >> revamping ryan air and the man of ahead of shaking of the image. that is coming up. ♪

>> welcome back to "the pulse." i am francine lacqua. >> i am guy johnson. u.k. gdp numbers. that matches initial estimates. >> it is confirmation. there should not be too much reaction and there's not been too much reaction. now -- >> an exciting story. egypt is unveiling a plan for a new capital city.

it will be billed by an unnamed uae company. debtor built by an unnamed uae company. less been to the egyptian minister of finance. good morning. -- let's talk to the egyptian minister of finance. we were fascinated. why does egypt a new capital city? >> highly needed because we have to spread the core masses inside of cairo and the suburbs of east and west cairo into new cities and transfer all of the government into one case -- place in have much more spread between the interaction of new cairo and new development area. >> just give us a sense, it

would be to the east of cairo right? >> and a new cairo. >> how big would it be? >> it is going to be the same size all-new cairo. >> ok. who is going to build it? we heard is going to be a you a firm. can you name the uae firm? >> i like what you said, unnamed firm. >> have you never it down? -- narrowed it down? >> we are into the finalization of getting a developer that will build it. and by the time of the economic conference in march, we will -- the aspects and have the agreement.

>> in your for would it down to how many -- you have narrowed it down to how many? two. >> can you tell us? >> no. >> we know they are -- we can probably guess. abu dhabi? >> a lot of master developers and british master developers and i think we are involved with the developers. >> how much will it cost and how much -- who will finance? >> close to 500 billion each of two pounds -- egyptian pounds, $80 billion, something like that. >> which end of the road, abu dhabi or dubai?

>> voth both. -- both. >> holds financing? >> private sector. to open market. and also we don't want to get into budget spending. we structural reformare into a more into spending and private -- private -- we are into structural reform and more into spending in private. it is going to be financed by the developer. >> are investors other than the uae put off by the conflict in

egypt and other conflicts in the area? a constant theme in everybody's thinking. >> i think it should be addressed to -- >> a week and asked the velma later. >> if we as petroleum companies of why they are the biggest investor in egypt and in foreign countries since. i think by the new venture british petroleum is getting into a reporter for natural gas that will cost investment of around $10 billion in the coming 4 years. the u.k. will be coming a major investor in egypt not only on topple foreign countries but all

countries. >> minister, you said investors are very happy to invest in the country that oil companies in usually take more risk than others. what is your message to investors that may help you yield the city and may not be oil and maybe more risk of first? -- risk aversed? >> a driver for growth and it will be in the coming 10 years but also egypt has a very unique feature on consumer concerns. when we look to demographics of egypt and masses of citizens in asia, we will find the market is 90 million consumers. the more important thing this market is adding one way consumers more per year. >> how much of a presence is it

at a moment? >> presents? >> presence? how much of a th reat? >> not just a threat in egypt. what's it we see more movement in libya. is it more dangerous as an isis or is or whatever you what to call it it will flare up in egypt? >> personal opinion is that i do not see it in the country. everybody's started to death along with the government's plan and reform and believe that building our economy is something crucial for our new

generations and also one major target and citizens' target and breaking possibility more and more. >> thank you so much. ashraf salman. >> varoufakis told bloomberg he is counting on the european central bank to avert default when they run out of money next month. >> the ecb could simply hand over the money to the imf, partial repayment. the ecb, money we are old and money -- owed them money to is not a bottle but our money. why not simply have the institutions find it among themselves and find it among themselves a way of transferring this funding?

>> rbs has reported its 7th consecutive loss. it is an improvement on the 9 billion loss the year before. a $4 billion write-down on the u.s. market. and a charge on deferred taxes. they named former howard davies as is new chairman. >> ukrainian government lifted a ban last the 24 hours after posing the restriction that had been aimed at stemming the flow in the currency. the bank had said the national bank of ukraine, second move the bank said on the website it would extend the freeze intended for foreign exchange to 4 days. >> for more, let's bring in ryan

chilcote. what do we know so far? >> what happened yesterday is it the central-bank of ukraine suspended trading bowl for the day got underway yesterday. the reason is understandable, ukrainian currency was down 70% since the beginning of last year and down 50% before they did that this year alone stop then the prime minister during the trading day in which no one was traded criticized the movement and said it will not lift constant -- confidence. and they all sat down and they resumed trading and they lifted the ban if you will and trading of ukraine's currency has begun a new today. ukrainian currency is down 48%. in other words just a little hair above where it closed before the central-bank bandage trading. invented an about-face.

-- and then it did an about-face. >> we are all confused. what is the thinking, what is going on here? >> that thinking is there's this big financial aid program from the imf hanging out there and they need that desperately. if you look at the bond market the bond market is betting against the ukrainian economy and betting the russians are really winning out. if you look at ukraine's benchmark bond the yield right now on those bonds that mature in 2017 is 56%. you remember we sat down two weeks ago and watched that cease-fire get concluded in donetsk and christine lagarde came out in brussels and announced an aid program in addition to other money from other countries. what has happened with the

ukrainian bond yields since then? then it that way at 37%. investors are really concerned this imf of money, while it is not coming quickly enough. the imf came out with a statement yesterday saying they are meeting march 11, two weeks shy of it now, if the aid is approved and that is the expectation, they will frontload the disbursement of that money and give them 5 billion on was immediately. there is so much concern in ukraine that this conflict which has gone cold could heat up again and that clearly is on the mind of investors. >> ryan chilcote with the latest. >> testing and ctification. earnings this morning and we will speed to the ceo after the break. ♪

>> welcome back to "the polls." earnings are out for the world's second-largest certification services the company missed estimates but sees improvement for the year ahead. joining us for an exclusive interview is at the ceo. thank you for joining us. you are a very good benchmark to understand trade and certification and how things are

coming in and out of countries give us a sense of your of you of the world and we are seeing much lower growth in china and fewer exports. how does 2015 look like? next on so, you are right. -- >> so, you are right. i would say geopolitical environment and the european economy situation and in particular the headwinds of the business. but in this, we achieved 94 -- 9.4% of growth. [no audio] >> technical difficulties. we will get right back to the ceo of bureau veritas. it is a good benchmark of how

you see earnings grow and the pipeline and give you a sense of a lot of the companies are selling or not. >> we tested and certified of the line and i think he is good to talk to. didier, we apologize for the technical difficulties. thank you for your patience. can you tell us how much the drop in the euro is impacting your business right now? >> the drop of the euro is quite good news because when you look at where our revenue is today and a big part is made in -- and it is having a positive impactin 2015. >> can i get your cents of what the organic -- sense of what the are getting revenue will look

like? i read about your company and the expectation over the medium-term the organic line will move to mid to low single digits, is that a correct assumption? >> improvement in organic growth in 2015 where we were 2.5% and slightly above in 2015 and in years to come, we are working on a strategy of an initiative. in fact in 2015. >> give us a sense of acquisitions especially in china and you are trying to be less dependent from the eurozone or even the eu. what worries you the most about the eu, a possible breakup or that of great britain could believe that the u.k.?

>> in terms of acquisition, the strategy is really key and we want to better understand the portfolio. my vision is 33% in america and 33% in asia. the reason why we want to diverse fight and making acquisitions in the americas and in china because china is of course the biggest economy in the world. >> making those acquisitions with china and you think despite the slow down, the overall economy is getting bigger and bigger and that is the place to be right now? >> yes, for sure. when you think about the chinese economy today and even if it is slowing down,'s hill at 30%.

-- it is still at 30%. the highest gdp around the world. they want more, and this is what it is about. >> a very quick question. we will see the indiana budget come out. mr. modi's first series attempt to lay out plans. would you look at that as being number two in china of where you want to position yourself? >> we are a leader in india so we can see both in construction. i visited india just three weeks ago and i was very pleased to see it is doing extremely well. >> thank you so much. didier micharud-daniel the ceo of bureau veritas. >> stay with us to find out why the priests are rushing to get

mba's. ♪

>> a good morning and welcome back to you are watching "the pulse." right. time at the post bankers and

pontifical university in rome has launched a course to teach management skills to priests. the country still in recession and the hope call -- pope's call, the course is proving a big success and bloomberg got exclusive access. >> a typical office, typical paperwork covers a typical desk. making its to meet is not an easy task. you need to analyze, make estimates cut costs when necessary. yep that is typical, too. he is not as typical as he appears. this is his real calling. >> ♪ >> bus as an administering to the faithful, the father must

administer and run student dormitories. >> the challenge is to promote the human good, the human capital together with the economic capital. the father is one of 30 or so students taking pastoral management courses at a positive university. >> we are talking about managing the church and land in everything that has economic and everybody the sea super fishermen if you have created a huge problems for communities and the church -- everybody can see that it has crazy huge pros for communities and the church. >> in 2013 looking at a deficit in this together with a rush of scandals have pope francis on a reformed drive with education at

the winter. >> sometimes into the ecclesiastic circles, the transparency is not due to a premeditated scams but falling into traps because the education is not out. >> as father cavallo continues class, history provides background. looking down is the man considered the doors of a modern accounting today. >> right. lazy in hr -- lessons in hr for the bankers. first word is often the and a second hour of "the pulse." >> is the man behind ryan air'-- is the man behind ryan air's revamp. >> would you fly on ryan air for

business? we will take a this is a you can follow us on twitter and join the conversation and a new look and tell us what you think. ♪

>> a new banking boss. bill winters is named ceo. >> counting on the ecb to avoid a default. >> change is in the air. we will talk to ryanair's chief marketing officer. >> good morning to our viewers in europe. a warm welcome to those waking up in the united states. >> this is "the pulse." >> we begin with the flurry of banking news.

standard charter is naming bill winters its new boss. a bit of a surprise. >> a bit of a surprise. bill winters was formerly the co-ceo of the investment banking unit a jpmorgan and then set off his asset manager in 2011. not only does he have an unbeatable record in terms of investment banking experience but also exceptional understanding of global regulatory conduct environment. there it is. independent commission on banking. he knows the new environment he has to play within. he knows the things that have

been hurting standard chartered recently. they have to re-navigate. >> he is a dynamic charming well spoken -- >> why this one? why standard chartered? >> a global presence. asia is dominant. >> he is an investment banker and they are banking away from investment banking. so, again, why is he taking this job? >> a challenge. he is a very driven man. >> maybe the bank of england suggested it. >> the experience is invaluable. i don't think you could get many more endorsements. >> we have some rbs earnings.

>> a loss of 3.5 billion pounds as we had expected. a big charge to the citizens unit. they are focusing on change, on slimming down, on being more effective. they are whittling down their presence in asia and the u.s. there will be substantial job losses. i feel for those in the main offices. rbs is going to see materially higher restructuring costs for 2015. there is some concern being painted for investors. a $36.5 billion u.s. loan portfolio. they are reducing risk-weighted

assets and improving the capitalization of the bank. if they get to 13.2% the taxpayer and shareholder start to see rewards. they could see material capital distribution. that is what they are promising. that is what is going to be happening in 2016. they are shaking up management. a new chairman is coming on board. big experience in negotiating with the government. howard davies was the head of the financial services authority. rbs is still trying to woo the shareholder, the public. one million pound annual pay package. the bonus pool being cuts. investment banking pay per head

is down by 11%. >> thank you so much. caroline hyde with some of the banking news. >> the scandal over the swiss private banking unit of hsbc that whole issue belongs in a different era. he addressed why he himself was paid through a panamanian-based firm while he was working in hong kong. >> it was purely about privacy. privacy from colleagues in switzerland. it had no purpose whatsoever. >> another top story is greece. mario draghi may help the company -- country avoid default. >> the ecb could hand over the

money to the imf as payments. the ecb recognizes that we are out. it is our money and open payment to the ecb. why not have them find it amongst themselves, a way of transferring the funding? >> the finance minister also spoke about greek banks. he said there has been money flooding back into the greek banks. >> yesterday, we had a deposit flight back into the greek banking sector. 700 million euros. as a result of the news of this bridge agreement. i have not checked the numbers today. >> you are still down by tens of billions. >> it is a question of

direction. once you turn the tide, you hope. >> still ahead, we speak to the chief marketing officer of ryanair. we talk about a potential aer lingus deal with iag. >> this brings us to our twitter question of the day. would you fly ryanair for business? do you? what is it like? let us know. ♪

>> welcome to "the pulse." >> ryanair is when you're into -- one year into its always getting better program. our perceptions actually changing? let's talk to the man in charge of this process. he is kenny jacobs the chief marketing officer. one year in. how has the year been? how has the brand moved? where are you? >> we are really happy with the results so far. we have reached 90 million customers. we kept the cheapest fares. we have also greatly improved the schedule. through the always getting better program we have started

a series of customer initiatives that have improved the in-flight experience comes the digital experience, the distribution of the project. we are happy with the results, we like change, we are excited about what we will be rolling out next year. >> how can you get better? >> you can always get better. we would say the program started off as our change initiative and it is a good way to describe the core value of ryanair. we like to do business quickly. we love listening to our customers. >> what do they want? >> they are looking for further changes in terms of mobile. everyone is doing everything online on a mobile device. we want to further improve the apps that we have and move to a native app that will work better.

big changes are coming to the website. there are also things that we are doing that customers would like to change. there are some things that we do that customers still don't like. we have continued to listen and continued to change some policies and further improve those things. >> what are those things? >> i will reveal everything -- [laughter] >> is it going to be radically what customers want? >> next week, we are going to launch a new customer charter. this is going to be the flag under which ryanair will stand. the second thing that we will do, there will be quite a lot of change with the in-flight experience and the digital experience. there will always be incremental change and incremental improvement. >> the first one for me, that is a lot of marketing speak the second one is flight and are and

-- is that going to be better? -- entertainment -- is that going to be better? >> customers want to have a mobile device in their hands and do things on that. >> we will talk about ancillary revenues later on. i'm listening to what you are saying. we are one year in. is your sense of brand development that you have bed in what you have done and it takes a while to change or is that you -- is it that you have to continuously reinvent the wheel in order for that to happen? have you done the heavy lifting? is there more heavy lifting to do? have you put all the bits in place and you just have to tweet them a little bit and let customers come to you? we have done about two thirds of the heavy lifting. -- >> we have done about two

thirds of the heavy lifting. we have done a huge amount in year one. but there are still things we want to improve. i think about a third of the heavy lifting we still need to do this year. there has been a big improvement of how customers feel and what they say about ryanair. there has been an improvement of over 30% in terms of what customers say about flying on ryanair. hard facts that we have gone from 81 million to over 90 million customers and we have had a 6% improvement. those are two big numbers. there are 12 extra people on every ryanair flight this year. that is a big, big deal. >> when you say you are two thirds of the way there and you have a third left, what kind of things are we looking at? what does it mean that you get to a place where customers think

that they are happy to fly with you? what are the parameters? is there a company outside of airlines that you admire and you want to replicate? >> there are a lot of companies that we do admire. we have talked about what aldi has done. they have really improved their brand across europe. ikea and h&m are other examples. companies that represent the european site guys, happy living, and being smart with your money. we are -- zeitgeist happy living, and being smart with your money. we are very, very ambitious. the vision that we have is that we are in the travel space and we are going from describing

people's passengers to people as customers. we still have a model based on acquisition and it is now about retention. it is a very different ryanair that is listening and has a high ambition. regardless of whether you are traveling on leisure or business, you come to the ryanair website. >> think outside the box for me. what is the most outside the box idea you have had in terms of ancillary revenues? >> when you are traveling in europe and you say, i want to get from london to a week holiday, the first thing you do is go to an airline. that gives us a great opportunity. the customer comes to us first. yes, we can sell you a hotel.

we can sort you out with car hire, getting to the airport, getting from the airport. we can sort you out with restaurants. >> we are looking for outside the box innovative. there must be a crazy idea. >> there would be several ones. a lot of people have tried that before. it has not been executed that well. execution is what it comes down to. we take the model and it is pretty much everything we can do. the content is important. people would like to shop all they are flying. they would like to research things to do at the destination. that is the way we see the end to end journey that presents totally different opportunities as opposed to just having the lowest priced flight. >> thank you so much. kenny jacobs has much more with us as he stays with us.

the twitter question of the day do you fly ryanair for business? >> we are going to talk about janet yellen later on the program. a very interesting hearing in the house on capitol hill. we are going to get a take on what exactly we learned about the future of the u.s. ♪

>> welcome back.

you are watching "the pulse." we are back with the ryanair chief marketing officer, kenny jacobs. let's talk about the push into business. we have been talking to people about whether or not they would fly ryanair for business. how has the shift in mindset going to happen? >> there are already 27 million people flying ryanair on business. they have been doing that for 20 years for two big reasons. we have the lowest fares. we fly to 1600 destinations across europe. if you want to get to a particular place, ryanair is often the best airline. >> you fall i -- fly to places that nobody has ever heard of. but you don't fly to the major hubs. you are changing that as well. >> yes. over the past 30 years we

really have been part of the story, as far as europe opening up. now you look at all the places the british families and british businesspeople fly to earth ryanair. business travelers have always chosen ryanair because of the fares and the choice destinations. >> at the moment if you certainly work for a very big company and the business is for both flights, people's perceptions may be the least low-cost airline. you must be thinking of this and trying to shift that. >> we launched ryanair business plus. this gives you fast access, it gives you flexible tickets. you can change the day and time of travel. it gives priority boarding. this is not business class as business people know it.

this gives smart businesspeople particularly any ceo or cfo who wants to save money and be transparent with their travel budget it is more product for them. it is a great, cost effective, flexible ticket that we think smart business travelers need. that product allied with the more primary airports we are flying to. routes like glasgow to london. you see a high penetration rate. in addition to flying to more primary ports, having lower fares, that is what it is all about. ceos and cfos are being asked to be smart with travel budgets. there are two may businesses that are booking travel too late , through travel agents who were taking a hefty commission and spending two hours getting to an

airport like heathrow and paying 350 quit for a 50 minute flight in europe. >> what is interesting about moving to primary hubs is that there has been very little overlap between you and easyjet in the past. increasingly, that is going to be there. does that change the way you think about the competitive landscape? >> it does not change it for us. it is something that easyjet would think about more than ryanair with think about. we are very confident that when we get to a particular basis we will take on any competitor. we don't see any competitor staying with us that often. over the next couple of years, you can see all low-cost carriers do well. international carriers are going to continue to reduce capacity

across europe and that is great opportunity for ourselves and for other low-cost carriers. that is what is happening in poland, portugal, in the u.k. and across europe. >> how much of an advantage to bigger carriers have because they are not hedged as much as you are on the price of fuel? it is going down at the moment so that is a disadvantage on your side. >> we don't think there are any carriers of significance across europe who are not hedged. we're all hedged. we are at $92 next year. we are at $62 in 2017. i don't think anybody expected fuel to be where it is today. we would always want the certainty. you want the certainty because it makes it easier to manage the business. any benefit we get, we pass on

to customers straight away and we never have the fuel surcharge. the results show that it is possible to deliver great results. >> do you think -- what you think about aer lingus? >> it is speculation. we see what is playing out in the media at the moment. our position is that we have not had a formal proposal offer from aig. our position is still that we would have always said that aer lingus does need a bigger parent at some point in time. we still think that ryanair would be the best parent for aer lingus. they will need to sort that out themselves. we don't think about it that much. this year, as we do what hundred million customers ryanair will be 11 times the size of aer lingus.

we are focused on growing across europe. >> kenny jacobs, think you so much. the chief marketing officer at ryanair. we are back in a couple of minutes. ♪

>> welcome back. i am francine lacqua. >> let's talk about the markets. >> let's keep it focused and put it on two asset classes. xp markets and bonds. the all country index trading at an all-time high. the dax at a record high. for the up -- for the optimist credit conditions and focus.

the ecb reporting on credit conditions. people are looking at it as if it is the turn, the turn for the eurozone. what i want to talk about are the xp markets and the bond markets. in the market, it is the japanification of everything. this is not just the periphery. at a rally in portugal spain, italy, and germany as well. a record low for the german 10 year. the remarkable thing about the market, negative all the way out , even the seven-year. the financial repression, the japanification of everything in the bond market. you have record low yields in the bond market. that is the point of qe.

what does that mean for the risks people are taking? these yields chasing inflation lower. francine: a look at the credit market and what this means for investors, why equities are seeing negative yields, let's get to francesca. we were looking at some of the markets and charts. the markets are skewed. it is about qe. what does that mean for giving a sense of the risk out there? >> the risk has gone up. you are transacting on variable yields. as yields fall, duration goes up. if you take germany, for example, you can calculate on's with maturity -- you can

calculate bonds with maturity. the sensitivity to small changes in yield expectations from here command sizable price swings. that makes fixed income a dangerous asset class. guy: how does the ecb manage a program with the setup you described? >> says long as they buy, they can absorb the risk. lest will remain in the private hands. if you calculate how much the ecb will take away a gross issuance of bonds, huge numbers. that should reduce rollover risk for governments, improve fiscal capacity.

that is their balance sheet and they can absorb that essentially. that is the name of the game. what is left for private investors is to look for alternatives. that is what we have seen happening over the past several months. people start moving into equity indices. i think that process is in play. francine: equity places -- equity prices are inflated. let's talk about negative yields. are they justified? germany had an auction at negative. >> think about it in relative terms. the opportunity cost of sitting in cash is high.

you have to store them safely so you experience a cost. the assumption was that you could not push rate that much below zero. people have a high preference for transactions, want to keep money in the banking world rather than going around with a shopping bag of bank notes. if your relative costs of cash is so high, you will be willing to hold a bond for even a negative yield. guy: is there a duration issue is there a period to hold negative rates at? if i hold them too long, i force people into the cache story or i start to change behavior. if we do it for a year and it

stops working, two years and it starts -- and it stops working because we force people to change behavior. >> it could be a quick one. people withdraw money from banks and start holding cash. that is worrying. the other dimension is people can feel poorer by the fact that if they are saving, they are getting taxed on that. the whole idea of unconventional policies may mean something bad is happening in the world, i should not spend or borrow. that is a bit of a paradox here. think about germany. francine: when are we going to get a rate rise? >> we still think september.

the reason why we are a bit later is because inflation is tracking lower and the fed will want to have reinsurance that -- picking up before the trigger. this anxiety does not mean much. what is interesting here is that we have terminal rates. policy rates will settle in the future. think about the euro area. it is half of the inflation target. that is very striking. this has spilled over onto other countries, including the u.s. where terminal rates don't go above 2.5%. guy: what does the peak of the

great cycle of clay? >> terminal rates come with a confidence band around them. most would say, for the u.s., a three handle is about the right number. then, you want to build on that. that may vary over time. i think the three handle has not changed much. francine: if we take a step back you are not awarded about the fed, even if they get it wrong. it could be huge risk for the rest of the world. you have the u.k. facing a possible exit out of the eu. greece is not dealt with you have russia, what is your biggest concern? what do you worry about most?

>> russia is russia. for those of my generation, the cold war seems to be creeping back in a different format. it is a risk markets will learn to manage. to me, thinking about macro specifically, the biggest risk is greece. we are in a probation period that looks unstable. greece has limited cash resources. the whole game here is to try to get them to work closer to the eurogroup but by keeping the country on eight tight cash balance. around that, the risk of calculation is very high. guy: we were talking about qe reducing the risk of sovereigns

there would be a smaller pool of gotgovies. with qe in place, is greece not --? >> this is a paradox of greece. for us and markets, it is a difficult risk to handle. i say this because greece is going more into the official sector. it has been quarantined more and more and that is giving peripheral countries a sense of confidence that it will not touch and you have qe taking over rollover rates. that amplifies the same dynamic. the moment they greece were to

find itself without cash and the funding by the ecb were to be interrupted, the so-called -- case, materializes, people will start looking at the eurozone as a whole fixed rate regime rather than a single currency and that will give rise to convertibility risks again. francine says francesco -- francine: francesco, thank you for joining us. guy: we will talk to the cfo of a water company. that is coming up on "the pulse." ♪

francine: welcome back to the pulse. guy: growth in the years to come. they will pay dividend this year. francine: we are joined by v eolia's cfo. is this a significant turnaround? things are going to get easier? >> that is the general feeling we have. we started a transformation plan and today we are reaping the

first results of this effort. we are back to growth in every financial indicator, sales are up, ebita is up. this triggers a rebound the challenge is to continue to grow. given gains and the growth we are in joining overseas, we are very confident we will be able to deliver what we promised to the market which is to generate enough to fund the dividend.

guy: later this summer we will get the new strategic plan from the business. can you give us a sense in which the areas are likely to focus, what are the key drivers for the business? as an industrial company, we are new to the exercise. the good news is, we have a lot of improvement to do in terms of purchasing operational efficiency. we are just starting

benchmarking 101. there will be a round of that. we've also be the focus of a new commercial approach. we are presenting a one-stop shop to new industrial clients to outsource all of those facilities and this is spurring growth. it usually comes with rhett -- with less cap ex or we structure the deals around other types of structures enabling us to do more with less capital deployment. francine: you said you want more contracts from industry such as oil and gas.

the contracts will go down and you have to change or a daft your strategy. >> it is fair to say it is one where we have spectacular successes. it is true that some projects will get delayed until oil gets back to higher prices. at the same time, the pressure on prices means oil majors need to do more in terms of adjusting their own cost and keeping the license to operate where they have profitable fields, which means we still have a lot of conversations going on for new projects cultivated terms of

better efficiency, better recovery, or environmental cleanup, which is necessary for many of the new, nonconventional oil and gas operators to go ahead. this year may be less of bullish orson order because of the oil price. long time, we have no issue. this is only one among many new segments in which we are targeting commercial efforts. guy: in the past, you have had your fingers burnt like going into the mn days story. you have recovered from it now. is that on the agenda again? >> know, we had to reduce debt which was the main objectives. we sold regulated water in the u.k., for example.

we are safely at the level we targeted in terms of debt ratings. there is no more pressure on us. we are in the process of divesting some of our operations. in israel, we are putting our construction business on the blog. mostly, we are not going to reinvest those sums into large mn day. the other thing is, we are enabling acquisitions. a portfolio of know-how, supplementing it in order to provide superior service to the growth segments which we are targeting. that is something we might continue to do, but we are not going after any large elephants

this year. francine: thank you. guy: we are going to take a break. we are back in a couple of minutes. ♪

francine: welcome back. we are joined by ryan chilcote. signs about the cease-fire aboin

ukraine. >> we heard there were 0 attacks. yesterday was the first bloodless day. the first day they had not had a soldier killed in weeks area the rebels are pulling back weapons. ukrainian's same may be they are moving some of them to a different front to attack a different city, nonetheless, the ukrainians are comfortable enough that they are saying maybe they will start pulling back there artillery. that is the beginning of disengagement. guy: this feels very cold warlike. let's talk about the currency. >> it is not doing well. down about 50% since the

beginning of this year. down a lot today because yesterday, before trading got underway, the central bank said we will not have currency trading. at the end of the day, they did an about-face after the prime minister complained. it is trading again and it is down where was before they suspended trading. people are going to change their money in. i have to highlight this is a two-track conflict. the military side has quieted down. the economic side is continuing. we had the chairman of gas prom -- gazprom saying the

ukrainians have only paid enough to get gas through the weekend. francine: talks on this happening in the next days? >> i have heard mixed reports. part of the problem is russians have started to supply the separatist controlled regions with gas directly, but they are saying ukrainians have to pay for it because it is part of your country. ukrainians are saying that is not fair, you pay for it. francine: i am sure we are going to hear a lot more. that is it for "the pulse." keep it right here. guy: "surveillance" is up next.

francine: we will see you tomorrow. ♪

tom: nervous quiet as a cease-fire holds in ukraine. angela merkel rounds up support

for a bailout. greece wants -- to pay the imf. markets vote for deflation. germany bones. 30 one million large, that is with the boston red sox will pay a 19-year-old from cuba. we are live from our headquarters in new york. joining me, olivia sterns. olivia: fireworks on day two of janet yellen's testimony. she is accused of being too closely aligned with the white house and democrats. >> you are not willing to tell us the answer to the question. you want to tell us i am not getting involved in two weeks before an election you make poli