>> china since its lowest growth target in 50 years. where live in beijing. mark: bank officials meet for the first time since qe was announced. will speak to the finance minister in his first interview of the day. anna: u.k. office is investigating liquidity in the bank of england. mark: the drugmaker valued at $21 billion, we take a look at mega mma in the pharma industry.

welcome to countdown. anna: coming up this morning another bloomberg exclusive, we will go live to paris and speak to the ceo of j.crew as they open their first boutique in the country. mark: and cather -- qatar airways chief executive talks about his rival delta. let's get to one of our top stories, china's national people's congress continues today. as was widely expected the premier set out an economic growth plan of 7%. rosalynn joins us from beijing with more. what do you know about this figure?

rosalynn: it indicates they're trying to project a slowdown and are encouraging innovation which includes the quality of growth. here in china. he has said in the past that he will tolerate a lower level of growth as long as enough jobs were created. if you look at last year, the growth hits 7.4% and there were 13 million jobs created interurban areas -- in urban areas. way more than the target. a 7% figure is manageable because there will still be growth in the job market. this number does reflect the slightly changing makeup of the economy. the slightly changing service sector does mean a larger number

of jobs can be created with a lower growth target as well. one of the questions that we can ask is, can the economy hit 7% in the coming year? that remains to be seen but is what the government is going for. 7% is still remarkable still the fastest growing of all the nations. imf had estimated a growth rate of 8%. it is more or less in the ballpark figure. some of the other targets the premier announced was the inflation target of 3% and a budget deficit that has widened to a target 2.5% up from a target of 2.1% last year. mark: on top of the growth target, they are putting

together effort to combat the pollution issues. rosalynn: you might not believe it on a day like today, there are nice loose guys and sunny but the government has put forward more targets for that including cutting the use of coal promoting zero use of coal in some key areas and promoting new energy vehicles and supporting the geo-supply building more charging stations and really trying to push forward that agenda. trying to figure what are these goals are achievable will have something in the year ahead. the government has said -- anna: now a bloomberg exclusive, a fellow between two of the biggest airlines. we caught up with the chief executive for qatar airways and

he had tough things to say about delta airlines. let's unpack the story with hans at 30,000 feet. hans: that is a good one, i will member that the next time you say something catty to me about handbags. we have launched a complaint with u.s. authorities, this is delta and united continental in london. they say the gold state carriers get unfair subsidies to the tune of 40 billion per over the last 10 years. richard anderson has been out front making this case so i put this very question to mr. a barker, the ceo of qatar airways and whether or not he thinks this is fair, he is very clear that he was to see the report released and has other opinions. >> i do not have that insight into the report, i would like to have insight into that report so

that we have the opportunity to defend all the slander that it may contain. if you accuse somebody you could also give him the details so we can defend ourselves. >> slander is a strong word from you. we know the charge that subsidies aren't fair. >> exactly, i think mr. anderson doesn't know the difference between subsidy which he was receiving directly or through chapter 11, and equity that my government put into the airline for us as a business. hans: we asked delta to respond to that charge and we have not heard back from them will we do know is the u.s. carriers plan to make this report public later today and on top of that they are not only lobbying the administration in terms of the secretary of commerce they're meeting with u.s. lawmakers and want them reconsider the open

skies initiative in the state which allows all carriers to fly city to city without regulation. clearly they are pressing their case. anna: did he have anything to say about buying new aircraft? hans: qatar clearly has grand ambitions. they received their second a350 just last week and i asked if he would be buying some more and i heard a hint that he may be putting in more orders. >> we are getting our second a350 today and we are excited about this because we want to get as many as we can lay our hands on because we want to keep on expanding and we want to start operating these state-of-the-art airbus airplanes into the wider

sections of the network. hans: i also asked them for a progress report on the 787 a year ago having battery problems. he was strong then and he's almost a strong today saying he likes the work boeing is doing and making sure they iron out their issues. on both fronts he was pretty positive not necessarily kind words for the people with whom he repeat -- competes. anna: hans is back with another airline exclusive later on german programming with tim clark, the president of emirates airlines. mark: the u.k. fraud office is investigating liquidity options at the bank of england held in 2007 and 2008. the bank referred the findings of its own probe to investigate it. the bank held and from internal review about allegations of

whether the staff knew about rigging of the foreign exchange rates. we'll have the latest policy decision after midday today, they are widely expected to keep their policy rates. six years to the week since they cut the rate to a record low. this purchase will give up control of a blockbuster cancer therapy and they will pay $261 per share. that was 40% higher than the closing price. just over a week ago when we reported that the company was considering a deal. russia is accusing the u.s. of helping vladimir putin to the russian security council to the

u.s. is funding political groups under the guise of promoting civil society. u.s. officials have dismissed suggestions of a plot against putin. a warning this story contains graphic images. south korea man is being -- is recovering in hospital after being attacked by a north korean sympathizer. he suffered a wound to his face and his injuries are not life-threatening and his injuries who have been identified -- his attacker has been identified as a south korean. anna: you can join the conversation on twitter. we will tell you where we are. we will talk to you about the news coming out of standard banks for your adjusted income 17.3 billion rand is the

estimate as you see on your screen. just trying to find a few more details, adjusted income 17.3 billion rand from an estimate of 18 billion, missing that estimate. in terms of where the growth is coming from they say sub-saharan business. more detail coming through this morning. let's tell you what else we are focused on this morning, the ecb is in cyprus this morning and in the next hour we will speak with the finance minister in his first interview of the day.

mark: the ecb travel to cyprus today to finalize its plans. hello chris. i suppose we are waiting for the what's the whys and the questions about the details of qe, are we expecting surprises? guest: more of the same today. the big picture will stay the same which is large amounts of buying government bonds. the question the market is

asking is where will the supply come from. the amount they want to buy will succeed the supply available. anna: how will they persuade more supply into the market? guest: there isn't really a plan. if the austerity policies continue the way they are than governments will continue to be restricted in their borrowing. so they elected this position of huge amounts of demand from the ecb and not a large supply of bonds available did -- to supply. mark: and that could continue through september next year which is the initial cut off point? guest: possibly, the alternative is maybe the program expands into less standard assets. nothing on the table for that at the moment. anna: we might hear something from the ecb and terms of targets, some of the data out of the eurozone has been picking up

because of the pledge around quantitative easing and some people have said that is irrelevant, what do you expect to see the ecb forecasting? guest: the data is picking up because what they have done effectively is to get the currency down. you see that eu data picking up. i think that really can be pointed at the currency changes. mark: the market seems to be supported the process of qe and i'm doing a chart which shows the diversions between the euro stock and the share estimates. they're going in opposite directions and have been for three years. do we need momentum and from earnings as well as qe? it will be a rough start in

2015. guest: definitely we need earnings, earnings growth tends to lower expectations. it is ok in europe at the moment. it is doing a bit better than the u.s. if you look at q4 results. so you have this double whammy of macro potentially picking up. and the forecast will be good from the ecb variant at the same time you have earnings picking up. anna: if we look at what the fed is doing and the u.s. economy you said that equities would hardly miss a beat when the fed finally decides to increase interest rates, is that because it is a long time coming? guest: i think that's because the fed is very conscious that the economy has to be back on target before it raises rates. to the attention of the investment community will be on growth -- mark: what matters today is what

china has said. it lowered its growth forecast 7% in 2000 15. your big worry is chinese indebtedness, how might that play out? guest: we are concerned about corporate debt in asia generally. the reason is because we like asia and we want to be there and to think it is really the best growth story in the world at the moment. china is slowing but is still going to flow naturally because when the economy gets bigger you cannot grow at the same rate. certainly at the same time the government is trying to tweak the economy with more household income and a bit less focus on industrial development. the trump card for china is anticorruption. these are really positive so what we want emerging markets to

do, here is china doing it, that to me is a big puzzle. anna: china is one of the countries participating in a global easing trend in terms of making monetary policy easier and less you are the reserve which is going its own way. guest: asia has point high interest rates compared to the rest of the economy and there is room to cut should there be a slowdown. we think there are problems but there is a risk buffer. mark: it hit the high and drifted lower, more records to come and why? guest: more recourse to calm the league could see a lag. anna: you say an it relevant benchmark. mark: i take that personally. guest: there is very little u.k. exposure in the ftse 100 above 25%. mark: the cio of seven investment management.

anna: it is a big day for the european central bank, the first policy easing since the announcement that the stimulus program and tended to beef up the eurozone. mario draghi and his colleagues won't be sitting down -- the trip to the capital of cyprus is one of two meetings the ecb will hold outside germany. mark: as they hammer out the final shape of the stimulus program, draghi faces similar programs, the question of structural reform. the greek bailout is a big topic on the minds of policy makers and the continuing threat of deflation in the eurozone. anna: let's get some answers from jon ferro where it is all happening today. and i see the sun is shining and it is a balmy 17 degrees later on. jonathan: i have to admit this

is one of the easier assignments. for mario draghi and the ecb it is one of the easier meetings. the data appears to be improving , if you are a glass half full kind of guy you will be looking at the pmi. retail sales are picking up as well. nubber two, credit conditions and number three, the finally announced qe. no if's, no butts, no will they or won't they. it doesn't mean it is easy, we want the details of the plan. what will they buy? given that a third of the eurozone sovereign debt stock carries a negative yield. and the perennial headache that is greece for the ecb. they are also at the center because they are the ones keeping the banking sector a

life, that will be an issue going forward and i bet greece dominates the news conference. anna: more from john as we go through the morning. mark: will bring you any policy decisions from that meeting along with the rest conference on bloomberg as it happens. we will have the bank of england policy decisions live at midday u.k. time. stay tuned to "countdown." we will be back in a couple minutes. ♪

anna: welcome back to "countdown." a gas blast in a ukraine, i left the two dead and more injured. >> the mine is right in donestk the biggest city in eastern controlled ukraine. this is the most shelled part. the tragedy here today was of a different nature, the explosion happened in the morning when more than 200 miners were underground. ukraine was already home to some of the most dangerous minds. -- mines. in 2007 63 miners were killed. the conflict has added problems

in safety and economics. a lot of ventilation systems were damaged and a lot of the mines were lost because the pumping systems lost electricity in the fighting and they were flooded. finally there is an economic issue, a lot of the mines are the only source of work in this region. this is cold mining country and because the railroads have been destroyed, they are unable to sell their coal so they are not hitting paid. i was at one earlier this morning when they had not been paid since january. this gives you a sense of both the economic and human tragedy that is coming out right now here in eastern ukraine. mark: coming up on "countdown" which countries ranked the highest with women in senior roles? ♪

>> you are watching "countdown." the euro against the dollar. in other trend. it is a downtrend. down by 20%. falling for a consecutive day. the longest losing stretch since january 31 2014. we weep the european central bank meeting -- we wait for that european central bank meeting. when will this qe start?

how will they evaluate success? what interest-rate be taken lower? those are some other questions we are asking. and other major currencies trading against the euro. only three. the danish krone, the turkish lira, and brazilian riale. the euro is down today over the last week last month, less three months, six months, one year. you get the trent. -- trend. >> let's talk about those numbers. revenue has come in at 3.6 one billion euros. that is up 6%. the company is having a strong momentum.

proposing a dividend of 1.50 e uro per share. it has been a losing your for this business. they had been losing market share in europe and the u.s. despite being the sponsor at the world cup. something of the top -- tough year as it has come up against nike. the company is searching for a new ceo to replace the current one. he is looking at a new five-year sale plan. we will get more details on the company. they're looking to replace finance goals they scrap because a weakness in declining sales. if you details coming in -- a few details coming in.

the search for the ceo clearly one of the big stories there. >> apple is set to delay the rollout of its largest screen ipad. the screen tablet was due for a first debut pit production is scheduled to start around september because there is a slight delay in the display panel. >> etsy is filing for an ipo. ipo may end up being the largest new york-based technology company in 16 years. etsy was founded a decade ago and makes revenue through charges for listings to sell. >> an exclusive interview in berlin. latin america is a particularly interesting market. his focus remains digital. >> we see ourselves as a leading

digital publisher. that is why our focus is either purely digital or super brands that have tremendous potential for a global and digital rollout. >> you may be surprised to know that eastern european countries have the highest representation of women in senior leadership roles. it is according to a new report. the u.k., the u.s. germany -- joining us is wendy nichols. welcome to the program. it is not the first time i have seen this type of narrative. eastern businesses have women at the board level. this is communist ideal reasons. >> we have been doing our survey with this is leaders for a

decade. this is showing a trend that has been in place for quite some time. we do find russia up there at 40%. and some of the baltic states as well doing well in the top. that is because of the recent cultural legacy of the opportunity. we think that does the april. they get much better -- we think that does play a role. stem subjects. there's more expectation. >> why is that? is that something other government could learn from? >> yes. european governments have made strides. globally, it is a bit sad to say

that it hasn't changed much over 10 years. 90% up to 22%. but europe is doing better. some countries are bucking that trend and doing even better than others. france is bringing in more -- >> yes. talk about these quotas. cap and talking about it for many years. -- they have been talking about it for years. there are increasing enthusiasm for the use of quotas. are they the same unto just have to appoint them so we wouldn't need this? >> maybe people are saying, give us a push rather than a natch. they are the same people. but we found over the last two years, quotas have gone up. half of business leaders seem to

be saying perhaps we should try something else. get things moving faster. >> doing me quotas if you have gone anywhere in tent -- do we need quotas if you have not gone anywhere in 10 years? >> exactly. it is very slow. perhaps a net and then other things for helping with family-friendly policies of businesses can do a lot themselves to make businesses the kind of place women want to be leaders. >> japan. they do not come out well in this survey. prime minister has been pledging a great deal of social pledge to get women in the workforce. >> yes. there at the bottom of the table. reducing encouraging signs coming out from there.

i think a lot of these things take a long time. there's a large proportion of japanese businesses that have no women whatsoever in their leadership. it would take time for that to work through. >> this morning, one of the japanese carmakers appointed a woman to their board for the first time. does it have to do -- so much a separate national policies. take a global look. >> we see trends of how quickly or not quickly things are moving. take encouragement from countries that are doing well here. my new boss, the new ceo in the u.k. is a woman setting the scene. do you think businesses are responsive enough?

after here family-friendly policies being announced and it seems we get this knee-jerk response reaction from business groups that this is a tax on business. >> were not talk about a small business where it is not practical. we would like to see more action. >> thank you. wendy nicholls. mark? >> thanks. tell us what you think. tell us what is important to you. just two of us today. we will catch manus later. there we are. busy day on "countdown." stay with us. we bring you an exclusive interview with the french advertising company go to present get it. that is after the break. ♪

>> the top stores on bloomberg is our -- investigating the could do the options held in 2007 and 2008. that is after the bank preferred to its own findings to investigate it. it held internal review knowing about the digging of foreign

exchange rates. a reminder, we will have the banks led lease -- latest policy rates. marking six -- a deal that values the maker at millions of dollars. abbvie will pay a certain amount per share. russia is accusing the u.s. of plotting to oust vladimir by connecting opposition groups and encouraging mass demonstrations of the russia secure the council says the u.s. as funding political groups under the guise of promoting civil society u.s. officials dismissed these allegations. a warning the story contains

graphic images in the u.s. ambassador to south korea is recovering after being attacked with a knife by a north korean sympathizer. ambassador lippert suffered a wound to his face. his injuries are not life-threatening. his assailant has been identified. >> jc deco says it is well to announce buybacks. joining us to talk through the company earnings is the coaching executive. good morning. thank you for joining us today. >> good morning. >> you set that there were's market volatility in a week deterioration and macroeconomic data and geopolitical tension. have we seen a shift in some of

those facts? or are those issues still ever present? >> yes, they are in certain countries like russia and ukraine. the rest of the world we are very well-positioned. our emerging companies are representing -- we had growth about 40%. organic growth of about 14% and the emerging markets last year. asia growing at about 7%. revenues of more than 600 million euros. >> how does china lower its economic growth target to the lowest in more than 15 years? how does it fit into the emerging story? can you fill me in underexposure to russia and the impact of the ongoing crisis with ukraine and the impact on your business from operating in russia?

>> yes. this is a big business. as i said before, our business is growing nicely. 7% of any growth rate. we have now a daily audience in the shanghai and beijing subway of close to 10 million passengers. when we saw the concession agreement back in 2005, the number of passengers was about 1.5 2 million. it is nearly five times more eyeballs since you enter the chinese market. it is helping the top line. as far as russia is concerned, we are at the second-largest shareholder. the business is very tough. having said that, one of our local competitors defaulted on its rent payment and the city of

moscow, resulting in the dismantling of the panel. i think the crisis is bringing opportunities such as natural consolidation and weak players will disappear and reinforce strong players pit when you rebound, strong players will benefit from less competition. >> what about europe? you are big in france, the u.k. 60% of sales comes from your. the ecb will meet and give us more other quantitative easing program. what are you reading from the runes and economic data? >> first of all, after two years of decline all of the european countries except rents and the u.k. comest the strength and growth.

we grew at 4% last year and what we call the rest of europe led by a good growth in germany and rebounded in the southern part of europe driven by spain and portugal and to a lesser extent italy. france continues to get a market share. your slightly up this year -- we are slightly up this year. we continue to get market share. the u.k. is our third largest region with 11% of revenue also had good growth. the olympic year was a cracking year. we were up 2% in 2013. the u.k. is the most digitalized market in the world. we are generating more than 30% of our total revenues.

you can see them everywhere. it is interesting about digital is transport dwellers are starting to engage the a social network with digital panels making the experience more attractive. the transport landlords are prepared to help us secure the most visible locations. it was upon -- impossible for advertising in the past. we have advertising panels next to the information board about where your train is coming or leaving. those kinds of locations we offer bidden advertising -- are for bid and advertising. it is eye-catching did people are looking at those boards all the time pit with digital, they can engage with panels. people can find -- in real-time.

that is exciting. >> do you think ad spending could be disrupted by the u.k. election? >> cap a good -- we have a q1 in the u.k. now we expect probably some sort of impact from the election in may. the reason being advertisers tend to avoid -- we're will ahead of q1. our pacing numbers are strong. we don't mind having a little blip in may. >> i wish we had more time, but

we have got to move on it inc. you for joining us. the chief executive and -- the co-executive of jcdecaux. >> coming up, we look at our favorite stories from bloomberg digital outlook, including white china -- why china is losing millionaires overseas. ♪

>> welcome back. in a last-minute twist abbvie has swooped in to take in a company. here at murray's caroline hyde. it looks like abbvie beat rivals to it. >> indeed. johnson & johnson was considering it. $21 billion, that is going to be the biggest deal in the drugs area. it is huge. they're trying to get their hands on this blockbuster cancer drug. it is an easy to take pill. cost about $100,000 per year but is crucial to the fight against cancer. it avoids serious side effects to chemotherapy.

it is being embraced and used. sales are being driven up. that may not be approved until 2016. we have a stock offer. $21 billion. >> there's a certain company closer to home that was interested. it has been part of a potential m&a landscape. >> it has spirit had to look at why it is so attracted to drive up the cost paid the reason is the drug i'm talking about, the counter drug, is likely to scale up seven times the sales in less than four years. by 2018, we will see $3.6 billion of sales they estimate. it is likely to be approved by much more. it will -- it was shyer.

get the lower tax. >> thank you. caroline hyde on the drug sector. >> $56 to buy a prime filet mignon. in london, $210 to buy every by state. imam by you could go to prison for -- in umbmumbai, you could go to prison for five years. nowhere is it more expensive than in mumbai. >> chinese loses millionaire spewed the wealthiest are tempted overseas. 76,000 chinese millionaires immigrated or took on other

citizenship in the 10 years since 2013. amazing numbers. "countdown" continues. ♪\

. .

>> european central bank officials meet for the first time since quantitative easing was announced. >> the office is investigating liquidity options at the bank of england. >> china sets its lowest growth targets in more than 15 years. live in beijing as lawmakers gather. >> a deal that values the drugmaker at $21 billion. the mega m and a in the pharma industry.

welcome to "countdown." >> i am anna edwards. welcome to the second hour. another bloomberg exclusive. we will speak to the ceo of j.crew as they open the first boutique in the country. >> awaiting news from allied irish banks. until the earnings crossed the bloomberg terminal, i will try you would we are expecting. a four-year profit of 1.75 euros. the last time the bank announced a net profit was 2008. as i said, analyst are expecting me irish lender which needed a bailout to the tune of 21 billion euros -- should we go to

the ceo and ask him if they are profitable for the first time in 2008? david duffy joins us from dublin. it is crossing the bloomberg terminal. pretax profit, 1.1 billion. do we have a net profit. >> yes, we do. i think it is a positive result. revenues up 31% career the costs down 5%. provisions resulted in a net right back of 88 million. the overall business strength is strong. >> that is important. a lot of this is driven by the release of provisions taken in previous years. when will you get to the stage when you are reporting it normalized profits without these

exceptional provision releases? >> i think we are at that stage now. this year is the result of of a history of taking large provisions followed by a normalization of debt levels. you are in a right back position. the own for -- overall position the important thing is this is generating capital. the board is confident enough we have announced for the first time we will pay dividends on our preference shares, $280 million. the ribs of the first time we are paying money back to the taxpayer. >> you have said you are ready to do that. to essentially allow the government or government -- went to sell shares. michael noonan said here on

bloomberg, he will not sell until october at the earliest time. why is there a discrepancy between you saying you are ready and his saying we are not going to go ahead until october? x i think the issue is so much one of discrepancy. our job was to deliver a bank that has proved to be profitable. at the end of the day, is well capitalized. that job has been done. the plan we had was to deliver that model. that makes the bank and best of all. the timing has to take into account the normalization of our capital structure. the government has appointed advisers to address those issues. that has to be approved by the regulator in europe. the issue here is, we are a sustainably profitable bank with a strong capital base and is ready to be sold at a time of the minister's choosing.

>> why don't you wait as ceo? you are off to clydesdale banking in glasgow. why don't you stick around to finish the job? you have stuck around to finish the job. why do you -- why are you leaving now? >> i am looking at the future. as we stand today, we have a clear strategy. a strong chairman and board. a strong performance with strong momentum. 13 billion of approvals, which is up materially on the year. drawdowns of 50%. a strong momentum with a capable bank. the next four or five years will involve capital actions. i felt the time now is appropriate for me to leave.

the job i was asked to do has been done. sometimes ceos need to know when we have added the value we h ave. >> let's be frank. was it down to the government imposed pay straits? >> as you have asked me to be frank, it had nothing to do with pay. i took the job, knowing he pay cap was there. that was never a consideration when i took it. i made this decision around timing. the job i am going to com the process began where i was approached by others. it it is not related to hate. i had to leave knowing the bank has a real success in terms of

what is delivered and has huge momentum going forward. >> quickly when will the next chief executive be chosen? i gather the bookies have a favorite. he is the director of personal business and corporate banking. >> the ceo, i don't pay attention to bookies in banking. we expect the announcement to be made in the short term. the reality is i would not have done my job well if there were not strong candidates internally. as would the fit any bank, we will benchmark externally to candidates before making any decisions. >> i think this will be the last time we chat in your capacity as ceo. good luck to you. hopefully we will chat with you

in your new role, whatever that is clydesdale bank. chief executive officer at allied irish bank. >> a big day for the european central bank. the first policy meeting since the announcement of the 1.1 trillion euro program. ecb president mario draghi and his colleagues will not be sitting down in frank ford -- frankfurt but in the capital of cyprus. it is one of two meetings they will hold outside germany. let's go to john. >> i am in a sunny nicosia. an economy that has gone through a crisis and finds itselff exposed to a fragile situation. the finance minister is here.

let's talk about greece and russia. which one keeps you awake at night? >> i focus on the job that needs to be done here in cyprus. the exposure to the greek economy is not what it was. there was a close connection through our banking system. that has been terminated two years ago. the reason really cyprus greece the connection -- nothing unusual. the usual commercial ties that exist between all euro zone member states. i do hope the greek situation well re-stabilize. that we can avoid any upset. in any case that is not a direct concern to us. we are implementing our own

reform and consolidation plan. we are optimistic. once again, we do not buy energy from russia. we are not in touch or reliant dependent. especially tourist packages. you mentioned the weather. >> do agree with the sanctions on russia? >> we fully participated. there is a burden a cost. it is not really business as usual. once again, so far nothing that will be a cause of concern.

probably the devaluation of the russian ruble. that is a more direct cause of concern. even the impact on tourist arrivals. we hope our comparative advantages and other markets will make the difference. >>. by the banking system -- let's talk about the banking sector. nonperforming loans above 60%. people are not paying loans or mortgages. what can you do about that as finance minister? >> a lot has been done already. two years ago, our banking sector was crumbling. one systemic bank did go down. since then, there has been tremendous progress. we have a smaller banking sector. it is better capitalized.

through new foreign investment. better provisions, management. we do have a problem with height and appeals. that is -- high end appeals. that is left over from the russian exuberance of the previous years, the unsustainable credit expansion. it takes time, effort and also the right legal and institutional framework to enable the working out of these problems. it is not really -- the numbers say one thing. the reality is not a reflection of a nonperforming economy. the economy is recovering. >> the loans and numbers do say one thing. they spell out a difficult banking sector. a lot of people want a law that enforces foreclosures in cyprus.

the ecb wants to see it happens. -- happen. >> it has been ratified but suspended by the house until the second element, and insolvency framework meant to facilitate and encourage viable restructuring, is in place. all the pieces of the puzzle are basically ready. i will present the last bill to the cabinet tomorrow and the house. i am optimistic over the next few weeks, all these elements that will facilitate the loan restructurings will be done. >> mario draghi arrived earlier. have you spoken to him? >> the presence of the

president, it was a good meeting. we look forward to participating fully in the qb program -- qe program which is starting literally now. it will be a very significant direct and indirect benefit to our own economy. there is difficult work that needs to be done on the ground fiscal reform and structural -- but we want the extra push. that is what the qb will deliver. -- qe will deliver. >> that is the final question

for me. you are set to come back to the market. what is the rate of interest you are hopefully you have to pay? >> we topped the markets a few months ago -- pump the markets. it was a positive indication. we want to continue this year. >> do you have a level? >> we are quite confident that we should achieve something better than the first yield. >> that is the cyprus finance minister from nicosia. the governing council arriving behind me. i will bring you some of the highlights through the morning. we will get to the nitty-gritty of what the program could look like.

what are they going to buy and what is their appetite for sovereign debt? we'll be talking about that through the morning. >> thank you. fascinating conversation. after a banking crash, 3.5 years of recession, cyprus on the map as a location for that meeting. >> investigating liquidity. that is after the bank referred the finending of a known probe. they referred -- will have the bank's latest policy decision at midday london time. cut bait to a record low.

the purchase will give them control of a blockbuster blood cancer therapy. made up of a mix of cash and equity. the price is 40% higher then the price one week ago. russia is accusing the u.s. of plotting to oust vladimir putin by financing opposition groups and encouraging demonstrations. the security council says the u.s. is funding political groups under the guise of promoting civil society. u.s. officials have dismissed these suggestions. a warning that the story contains graphic images. the u.s. ambassador is recovering after being attacked with a knife by a north korean supervisor. he suffered a wound to his face.

his injuries are not life-threatening. his assailant has been identified as a south korean who had been previously accused of throwing a lump of concrete at the japanese ambassador. >> let's get back to the top stories. the chinese national people's conference continues. the premier set out in economic growth target of 7%. rosalyn chen joins us. impressive to some but not others. good morning. >> yes, still a high level of growth compared to other countries. the premier gave a figure of 7%. many countries would be envious of it.

still the lowest target in years. the economy is slowing but the government is pushing for reforms and promoting private businesses. china -- trying to change the physical structure of the economy. putting forward things like innovation. moving away from a manufacturing-based economy. value added to that. with that comes services. 7% growth it is a reflection of what had been going on in the economy. it means with more service industries building up, they can pursue a lower level of growth while also building more jobs. the imf gave a forecast for 6.8% growth for china. also the world bank 7.1%. around that will park target.

-- around that will park target. -- ballpark target. they are obviously thinking with 7% growth, there will be enough jobs created. job creation is 10 million for urban areas. the other targets they set were a cpi inflation target of 3%. budget deficit widening to 2.3%. that has widened from 2.1% which it was last year. that is because the government is folding in local debts. it will take on local debts. it is getting local governments to clear the debt and target issues they face. bad debt has been a problem for

china. >> pollution a key focus. what have they said there? >> indeed, it is. there has been a few more goals coming out on pollution. they want to promote the use of new energy vehicles, things like electric vehicles. support the growth of the use of those, for example by building more charging stations. they are going to target things like the use of coal. try to promote the use of cleaner fuels. in some area they want to promote zero coal. i don't know exactly how they are going to do that, but they want to minimize or reduce the amount of colby country relies on which at this point is still quite a lot. -- cold this country relies on -- coal this country

relies on which at this point is still quite a lot. they also want to clamp down on hedonism. >> thank you very much. the first set of earnings since the company became public. sold shares to the public. turning us now for an exclusive interview is the chief executive. -- joining us now is an exclusive interview with the chief executive. you have had a good time. will it continue? >> it has been a great year for us. the growth is something we are encouraged by. that is the power of the brand. the fact that we bought the capability. we have great customers. >> what is happening with impairments? down by 45%? ask the u.k. economy is strong. as a consequence, customer

performance is going well. but the quality of our government -- >> are the challenger banks, you might be called a challenger bank are they challenging? give us evidence you are making inroads. >> one of the great things for all challenger banks, certainly virgin money, we do not have legacy issues of the past. we can focus on doing good things going forward rather worrying about solving issues in the past. all the growth we are able to display shows we are making inroads. customers looking for a brand that is a real consumer champion. we are providing that. the growth we are seeing shows we are making a real difference to products and people's perception of thinking. >> is it a push or a poll that

persuades people to join a newer bank? >> a lot of people reflect on which bank they want to be with. i think people do have a relationship sometimes with bank branches. the big bank branches are the ones they have dealt with for years. there remains loyalty to the big angst. good probability -- profitability, branding. a relationship customers can value, whether it is online service. we have introduced a concept where customers can come in and see us in a number of cities. >> expensive in structure? -- infrastructure. >> people bring their friends and their friends come customers. we had hundreds of thousands of visitors over the last 12 months. it demonstrates the difference the brand can build with personal relationships. >> are they going to be

consolidations among the challenger banks? will you take place in that? >> who knows what will happen in the future. at the moment, we are continuing on building the virgin money franchise. >> are things going to get more crowded in terms of the banking sector? the big banks that have been distracted barclays they are retrenching back to their retail roots. does that mean things are going to get tougher? ask competition is critical. competition in banking is a good thing. it drives innovation. it has been too long since there has been innovation in banking. we would like to be at the forefront of it. >> the labour party once more competition on the high street if they got into power. what is the best outcome for banks here in britain? what are you hoping for? >> certainty is the most

important thing in our environment. from our perspective, having a clear outcome to the election. a decisive government in control, very important. uncertainty is bad, certainty is good. an administration that welcomes and encourages competition is right for everyone. >> is important the u.k. stays in europe? >> i think it is. the overall european economy is important to our success. for us as a u.k. bank, the success of the u.k. economy is something that we continue to support. >> the bank of england, will they raise rates or not this year? what is your best guess? asked during the course of this year, we are assuming there will not. we know no more than anyone else.

>> that is your assumption. ceo of virgin money. >> we will be speaking with the former mpc member. on the day the bank of england decides to change interest rates. ♪

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> time for your foreign exchange check. without we would look against ♪t the dollar against the euro. the euro down for the sixth consecutive day. the longest losing stretch against the dollar for a year. at the lowest level against the u.s. currency since september 4. the euro has fallen 20%.

when will qe start? will there be enough assets to buy? how well the ecb evaluate success of its bond buying? program ? what about greece. we know what has been happening in greece in recent months. against 31 a of its major currencies, only three are trading lower against the euro. the euro down against 28 major currencies, year to date. the danish krone the turkish lira, the brazilian real. >> the top stories on bloomberg. apple is set to delay the

rollout of their largest screened ipad. manufacturer was due for the first quarter of this year. production is scheduled for september because of delays. the global marketplace for handicrafts, andetsy is filing for an ipo. axel springer spoke to bloomberg and an exclusive interview in berlin. the ceo told us latin america isn't interesting market and his m&a focus remains digital parade clicks we see ourselves as a leading digital publisher. that is why our focus is on digital or super brands with a

tremendous potential for rollout. >> today marks the beginning of the boe seventh year. will there be an eight-year? kate barker. senior adviser of credit suisse. when rates were cut to those record low levels in march, 2009, did you imagine years on we would still have a record low interest rates? >> know, we did not. i can remember us discussing an emergency rate, going to a rate that we got was at the time was the lowest feasible rate. we did not think we would remain there for very long. we thought we would introduce qe at the same time and see the economy turn around quickly. it has taken everybody a very long time to understand how deep and pervasive the financial

crisis has proved for economists. >> how monday think rates will stay where they are? ask if you look at the u.k. coming could see a case for rates moving up quickly. it does look as if the labor market is tightening. private sector wages increases edging up. they are edging up. signs of labor market tightness and cost pressures. if you look outside the energy sector, some of the surveys suggest the cost pressures are building. domestically, i think you can see a case for saying the forecasts are stronger brady you are talking about the euro area. there must be some concerns about how strong you want sterling to be against your major trading partners. i'm sure that will be on the bank's mind as well as concerns about wages falling back. >> inflation is low. low oil prices.

should we look through it, as janet yellen says we should. look through low inflation because of oil writ is that how you would look at things? >> i would look through low inflation and an economy at a reasonable stage of economy. the big question is about wages. will we find wages have reacted downward? if you look and track the headline, it is clear wages responded mostly to demand and supply in the labor market. they do not respond all that much to headline inflation especially if driven by something like oil prices. we will see wages edge up. >> there has been a lot of change at the bank of england in the last couple of years. the governor is trying to change the way the agenda works. the mbc, they will meet your

times and publish minutes in a different fashion. any concerns about structures? how the governor still remains much more powerful than perhaps someone like to see? some of the responsibility should be less centered around the governor? what is your view? >> many of the changes are helpful. i am pleased they will bring the minutes out earlier. i would not like to be worrying about transcripts. it is not just about the bank but policy as a whole. we have taken to dividing policy up into blocks. the government looks after fiscal policy. the bank of england looking after interest rate. all these are macroeconomic policies and they have to work together. we are talking about the case for rate rises which i think is building. but that depends a little bit

what we get out of the election and hear about fiscal policy. similarly, what the interest rates do depends on how much -- there is not anywhere where you can see this being balanced. something the criticism made of the tripartite -- >> that sounds like the criticism made of the tripartite arrangements. inks have in group. >> i don't ticket is quite the same criticism. mine is about how you make trade-offs between different policies. in normal times, i would say there is no real trade-off. but we have been in a long time of abnormality. we want people to talk to each other and say, is the right thing to do not tighten fiscal policy so quickly? >> scandal has hit the bank in recent years. would be remiss of me not to mention it. the front office investigating

liquidity auctions at the bank of england during the crisis in 2007-2008. it is the latest scandal the bank of england has been criticized over. it's role in the manipulation of interest rates. has this damaged its reputation? >> my impression was everybody was working very hard and were conscious to the dangers to the banking system. looking back and judging on decisions made, i think it is easy to judge them by too high a standard. they were difficult days. the bank of england was in the forefront getting the economy through those days. i don't know the details of what went on, so why would not want -- but i want to say my strong view is everyone has incredible integrity and works hard.

>> let's mention briefly, housing. i am amazed to see quoted in literature, your report of 11 years ago. the last major government commissioned study. you are calling for to 50,000 homes to be built a year. we did not meet your calling. >> by a long shot. >> would you make of the plans for the housing market? >> the difficulty in the housing market is national governments are keen to push them up. little governments are not so keen. nor are there populations. planning decisions are made at local levels. we have no way to persuade people to live in more densely populated areas. perhaps we should accept we are not going to build quite so many houses. particularly in the southeast. the policy that might do the most is the direction we just had, trying to move activity north.

this is not an easy thing. we should not think the north is some great, empty zone. that is not true. but trying to move economic activity may help. >> thank you very much. kate barker, senior adviser at credit suisse. >> she is a big stoke city fan. i will have you known. -- know. you can join the conversation if you want to talk about for all housing, the election, the bank of england. -- about football, housing, the election, the bank of england. what is your twitter handle? >> i tweet rarely. >> she is on but does not use it often. >> we will take a short break coming up. iconic style crosses the

atlantic as j.crew opened a store in paris. mickey trexler. -- drexler. ♪

>> stories on bloomberg this hour. abbvie will pay with a mixture

of cash and equities. the price is 40% higher than the closing price a week ago. when the company was reported to be considering a deal. russia is a accusing the u.s. of working to oust president putin. u.s. officials have dismissed these suggestions. a warning, this story contains graphic images. the u.s. ambassador to south korea is recovering after being attacked with a knife why a north korean sympathizer. the ambassador, one of president obama's closest aides, suffered a wound to his face. his injuries are not life-threatening. his assailant is identified as a

north korean sympathizer. corrects -- >> 7:44 in london. the change gear. j.crew is not wasting time with its expansion in europe. they opened a store in london a year ago. tomorrow, it will open the first j.crew in france right in the heart of paris. joining us is mickey drexler the ceo of the business. we met a year or so ago in london. you said you are going to school to work out how to do this international -- j.crew internationally. what have you learned. >> have learned a j.crew is pretty much an international language. what is good in america or new york, it is also good in london. customers behave pretty consistently when it comes to wanting nice goods worldwide.

that is something we have felt all along but it is proving itself out. >> paris would seem a logical destination for you to go. why now? why do you think it is the right time to open up in the eurozone? >> it is hard to say what the right time or wrong time is. i was thinking right time is when you make the decision to go . we have five stores in the u.k. we thought the next step was paris. paris to us is the style capital of the world. you get to the city, you feel a certain style and only about everything done here. it has been on our list. we think it is the perfect start. the french like our close in america. -- clothes in america.

we get requests about wanting to buy j.crew men's, women's, and kids. we are opening a women's store. we are looking for a men's store. >> tell me about how the business is doing in the u.s. i read these are tough as wages have not recovered at the same pace as the u.s. economy. how tough is it in your part of the retail offer in the u.s.? >> it is extremely tough and challenging in the u.s.. forgetting the current weather excuses, excluding perhaps the west coast. you have probably been reading about what has been going on there. the apparel business, especially the women's business over the

last six or eight or 10 months has been challenging. very promotional. it is not simple. traffic is down in stores and shopping malls across america. online business is up. we are in somewhat of a retail evolution in terms of dramatic changes we are experiencing in the business. it has not been easy. very challenging. requiring a lot more intense product differentiation. a very promotional environment which impacts margins in our business. >> not easy. with the challenging environment, does that mean any thoughts that you or the owners might have had about taking the business public conducting some sort of public offering of shares, are those on the back order -- burner? >> right now, it is on the back

burner. in our business where we are privately owned, we would at some point plan to go public. now is probably not the best time to go public, from an earnings point of view. we have been doing this a long time. we are battling through this interesting challenge right now. only when we feel the trend is on a more even, predictable he'll. -- keel. >> is any tie in with the japanese retailer awfully table >> -- off the table? >> there were conversations. desirable brands worldwide. people approach us.

now is not the right time for us. >> can i ask you about something else? i know you are opening in paris today. you are also on the board of apple. you retirement from the board of apple has been talked about. why are you going to retire question like you have been a long-standing member. >> it has been 16 years. after 16 years i think it was time for me to move on. i have had a privileged run. nothing like it in the world, particularly in hindsight. when you look at what apple was in 1999 and what it is today. i served my time well. i have had a wonderful relationship with steve and now with tim. i felt like it was time for change. i think it is important board members do move on sometimes and

give others an opportunity. i had an incredible experience not to be paralleled in anything else i do. >> it brings a smile to your face. thank you for joining us from paris. mickey drexler the ceo of j.crew group. >> a light shot of london. the stock market set to open in a matter of minutes. ftse futures indicating stocks will open higher. stay with us. ♪

>> welcome back. time for today's bar chart. company profits are not likely to keep up with the rallies. the european stocks have surged. this chart goes back to 2005. it has gained 14% in 2015. seven times more than the s&p 500 best start of the year ever. at the same time, look at the purple line. analysts are cutting journalists -- estimates for companies. the divergence started in late 2012. now the cap has reached, the gap between the two lines, has reached the widest since 2005.

that is when we started compiling this series. european earnings have dropped more than 30% in the last four years. that has not put off investors, sending valuations on this index to as much as 16 times projected profit. the highest since 2005. can the rally continue without an improvement in earnings? no, says the ceo at a wealth management unit. even with the actions. if earnings do not pick up, markets will plateau. valuations are less attractive. it creates the possibility of a correction. be warned. be skeptical of europe's stock rally. >> 7:55 in london. "on the move" is next. we will speak to the ceo of the bank of cyprus.

you will not want to miss that. jonathan ferro in cyprus as the ecb meets. we will leave you in the hands of "on the modeve>' ♪

>> very good morning and welcome to "on the move or co i am manus cranny. -- "on the move" i am manus cranny. the ecb convenes in crisis for the first time since the crucial qe announcement. we wait for the latest on mario draghi's trillion dollar war against deflation. and the six-year anniversary of a record low rate, will governor mark carney file for divorce? that is the question.

7% is the goal for 2015, but is that too ambitious as the nation faces the headwind. and abbvie will by the pharmaceutical $421 billion. much more to come on that story. euro stoxx 50 up 1.5%. the german factory orders did little to quell the market. let's get to caroline. >> 20 seconds in, how is equity markets shipping up? we are tentatively higher ahead the ecb, the bank of england named its central bank frenzy today and economy frenzy.