guy: don't fight the fed. a rally is amid speculation yellen isn't in a rush to raise rates. >> insiders tell bloomberg the chancellor is looking for a compromise. guy: and time is money, as they unthe latest watch. we speak to the c.e.o. in an exclusive interview. guy: good morning, everyone. we are live from bloomberg's european headquarters. i'm guy johnson. francine: i'm francine lacqua. janet yellen opened the door

for an interest rate rise, but indicated that dropping the fed's patience stance doesn't mean they will be impatient when it comes to monetary policy tightening, leading to predictions that it won't come until the autumn. guy: bonds jumped on yellen's comments, while the dollar saw its biggest drop in six years. for more, we're joined by our chief economics correspondent, simon kennedy. she just backed off a little bit. the market can now rule out june and we're on to september. simon: maybe not rule out june quite yet. if the data picks up, june is still a possibility. but yes, the consensus is that economists overnight is that september more likely than june now, especially given the recent data. francine: how much does it have to do -- what she's looking at is a soft patch. she said you have to kind of rethink on the forecast, but at the same time we have a very high dollar. simon: yep, and the dollar, as i said yesterday, other people have been wondering, can the

fed decouple from this interest rate cut that we've seen globally maybe norway today? and the answer from the fed is we're not as confident that we can decouple. for the dollar reduces inflation pressures and helps them out if they do want to keep rates lower. guy: how do we think this works? if we look at what the members are predicting, is it more likely, as you say we get a rate hike, 25 in september, we then probably another 25 in december? is that what it is? simon: that's the betting. in shifting yesterday, in shifting what their projections and their forecasts are, the fed is now more in step with what the market was expecting and so it now is looking at the data, yellen making the point yesterday, you want to know what we're going to do, we've seen strong jobs growth, but as we noticed last week at bloomberg, the surprise index, which measures actual data

versus expectations, is that it's the lowest since 39. they'll want to see a pickup generally, and as she said herself, reasonably comfortable that inflation is back, heading back towards 2%. francine: you were just mentioning the norwegian central bank, it just kept interest rates unchanged. in terms of what we're seeing overall guy: can we just add a little addendum for that? it says it sees a reduction, as a result of coming under pressure, so they are hinting at a rate cut. francine: but nothing today, but it may come. it is interesting when you look at what the swiss national bank did, they were saying, look, it's something that we may continue to be reading if we see more movement, so everyone is keeping store. it seems that if you're a central bank today you want to be very flexible, thinking quick on your feet, because it's quite difficult. simon: we joked about it several weeks ago, the central

bank now, central banks yesterday they told us about a month ago, we can move any time we want, and we might do it. and yesterday it did. so i don't quite see the fed popping up in meetings, but certainly investors have to be on the ball these days. guy: when we think about where the fed is going to ultimately end up going as it gets pushed back, do we see that the terminal rate is higher or lower? simon: that's actually quite interesting from a completely nerdy point of view. last year bill gross said the new neutral, the rate at which the economy is neither speeding up nor slowing down, and the fed's best guess, according to projections is it's about 3.75%. gross says it's lower, close to 2%. the projection showed yesterday, and they're always subject to revision, is that that rate might not be met for 2018. that rate at which the economy is neither stimulated nor

slowed could be a decade since the collapse of lehman brothers since we get back to that level, and that's not even accounting for the fact that we're starting to see this expansion become quite stretched. we might not get back to neutral in this cycle, which suggests a very, very accommodative fed and kind of challenges the rate that we were talking about yesterday at bridgewater, the fed is going to risk a 1937 mistake by hiking too quickly. even if it hikes this year, whether it be june or september, even later in the year -- guy: yell suspect still so accommodative, we're not talking about the balance sheet yet. so this is a very easy fed. simon: again, we run into an obstacle with the dollar, and they're kind of backing off a bit. they want to see the people hoping the fed is meeting there at their suggestion, which is you don't have to see the white of inflation's eyes.

francine: there you go. simon kennedy, you can find him on twitter. guy: let's stay and talk a little bit about what's happening with the central banks. we've had a little bit of movement over the last few minutes. the s.m.b.'s mr. jordan is currently speaking. let's take a look at what the swiss franc is doing right now. not much movement there. but a little bit later on, our good friend and colleague is going to be talking to this very man, jonathan farrow will sit down with mr. jordan later on, and we're looking forward to that conversation. francine: the swiss national bank cutting its outlook and also predicting a deep plunge in prices this year. this is the first forecast since it dropped its cap on the franc, and that was january 15 of this year. guy: let's take a quick look at what's happening with some other currencies, the kron aon the move as a result of what the bank has been saying. the bank saying prospects for a reduction in the key rates. now, the euro is down versus

the norwegian krone. we'll continue to bring you all the data because all of this fitting into a wider picture of what is happening with rate cuts coming across the piece and pretty much unscheduled cuts as well. as simon was saying we now have a 24/7 story, expect the unexpected. francine: let's take a deeper dive into the challenges facing the fed and the swiss national bank as well. we're joined by the global head of research. thank you so much for joining us in the studio today. give us your take on what the fed has been doing. of course when we heard from janet yellen that the market tries to position itself, if you were to have i guess, have a big takeway they raise rates, but it's going to be very accommodative. >> from an f.x. perspective, what was quite important is it starts with a statement on the

export and the assessment of the economic outlook was downgraded, even though you would argue that harsh weather conditions could prove a temporary drop on growth. so it could have been a bit more optimistic. the message was clearly toned down, and that referenced exports, which came up during the press conference, if you have a comment on the latest dollar i guess it certainly triggers some positioning squaring there but the price action today is suggesting that the markets have a lot of appetite for dollars, so i guess the bottom line here is that no reversal for that dollar, we may have further to go but we got a pull here. the way i see it is the feds may continue to try to introduce some two-way volatility, risk of two-way move in the dollar, and that's i guess, a pattern you're going to see more and more from central banks. obviously central banks don't want to trigger bouts of volatility, be it f.x. or

rates, i mean, forward guidance was meant to achieve just that. but at the same time, you do see how the markets are moving in an environment of currency wars when you give the market a safe bet, then they could really overshoot either way. so from that point of view, having some two-way volatility is made healthy, and that's why i think the fed -- that's what i think the fed tried to achieve last night. guy: given the fact it wasn't very successful, do you think that there is something else that the fed might do? we're trending back down to where we were going into the meeting yesterday on euro-dollar. that's a very short-term story. >> but i think we did see an indication of how the fed may proceed from here. it is quite telling that they've lowered the unemployment forecast really to the lowest, the actual rate of unemployment, and yet in the statement it indicated that we want to see -- we want to be convinced that inflation is going to go up and unemployment will fall down further. but then again, how much further can unemployment drop? it's really the inflation that

will matter for the fed. from now on -- francine: and wage growth. >> obviously it's part of that. francine: arguably, i know it's inflation, but wage growth, is this the kind of thing you should be looking apt the most? >> well, i think so, and it is the case of what investors should be mindful of that as a whole, as kind of an endemic situation. it applies to all developed countries. at the moment, we're still playinged by low productivity growth, cyclical recovery, not really a structural recovery. we're going to see that in the eurozone. we're seeing that in japan. but the fact is that labor productivity remains fairly weak, and that is dragging wage growth lower. the real culprit, if you wish, the lack of investment, the fact that investment is a percent of g.d.p. remains at historic lows, again but only in the u.s., also in the eurozone, in japan, and if anything, that will likely keep the e.c.b. really cautious when they are even considering removing accommodation. so, yeah i guess the path of

really policy response to further dollar can highlight the "sportscenter" again and again of inflation. francine: thanks so much. he stays with us, and we'll be talking about greece next. ghipe brings us to our twitter question of the day, it's more about the fed. have an opportunity to the euro dollar. when will the fed raise rates? the fed seems to be september is now probably the most likely first opportunity for the central bank to deliver. tell us what you think. francine: tweet us. here's a look at what else is on our radar this thursday morning. guy: russia has accused you're crange by signing a special status. the claim comes as skirmishes continue in some parts of ukraine. meanwhile, e.u. leaders meet today in brussels and the possibility of additional sanctions on russia. francine: sanctions against russia will be on the agenda, as guy was saying when they meet in brussels, support from

greece will also be discussed. the greek prime minister has requested sideline meetings with german and french leaders, as well as the e.c.b.'s mario draghi as he hopes to make a breakthrough on dealing with greece's funding crisis. guy: and making progress in last-ditch talkts to the cement merger, an agreement on financial terms and leadership changes could be reached as early as today, according to people familiar who cautioned that talks may drag on longer or yet fail if terms can't be reached. if successful, it will be the biggest merger in europe in the last year. francine: coming up, the most expensive transformable watch ever, bloomberg got a sneak peek of the $40 million piece before its unveiling today. you asked me what is it. this is a ring. it can also be a bracelet and a watch for a cool $40 million. three for one, i'm not saying it was a bargain, but it was nice to try on. guy: plus we're going to talk the business of film, how important are tax cuts for the

creative industry? ♪

francine: european leaders gathered in brussels today. we're joined by our correspondent. let's start with russia. can we actually expect more sanctions? >> well, that's the big debate today. and actually, the leaders will

be gathering near just a few hours, and they're still along -- wide apart in terms of whether they want to renew the sanctions. a block of countries mostly in the east would likely sanction to be renewed until the end of the year to keep the pressure on. other countries feel like the cease-fire in eastern ukraine is holding for now, so they want to see if that is going to get better, if it's going to hold continue to hold, if russian president putin is going to continue to maintain that. of course, there's been accusations of breaches on both sides, but at this point it looks like it's tentatively there, and the e.u. leaders, i don't think they're going to be able to come to a decision today on whether to extend the sanctions or not. it looks like they may actually decide to have a little more time to make that decision. guy: let's talk about greece. we understand the greek prime minister has requested sideline meetings. he's going to talk to merkel, draghi some of the other key

players out there as well. look considering these guys are still becomering going into this and you've still got some of the main parties around europe still really sounding quite strong in terms of the rhetoric, what are we going to get out of these talks? jones: well, i think the greek prime minister wants to push the debate a little bit further. they're having the technical talks now, which are going over the nitty-gritty of what the creditors, what the euro group and the e.c.b. and i.m.f. expect from greece, and those are bogging down a little bit. i think tsipras is trying to get an agreement that puts some impetus behind those. he's facing a deadline, because it looks like greece may have a cash crunch as soon as the end of the month. so there really is a deadline coming up in this regard. francine: jones, thank you so much. jones hayden in brussels with the very latest on these talks. guy: let's get back to the global head of f.x. research.

you look at what's happening at the moment. my sense is that from a personal point of view, we are still a long way apart between the greeks and the euro group. when you talk to clients, what are they telling you about how they are reading it though? >> well, my sense is that a lot of complacency about what's going on investors are clearly ignoring that after all the safety net draghi and his colleagues the governing put in place. it's actually that whatever happens, euro is safe, even if greece were to lead the talk about controls and all that, the come fent effect that was a big risk is no long they are. and that sense of safety if you wish, is i think breathing complacency. they're acting as if the consequence of any disagreement

that could ultimately be an accident are not going to be as damaging especially on the creditors' side. francine: when you say it's complacent, is there actually a chance of an accidental happening? it seems there's a lot of noise. we understand politically there's a will to keep everything intact. so actually at the end of the day, we say don't fight the fed, don't fight e.u. politicians. >> you have to have a central case, and our case is it's still a lot of noise and ultimately a deal will be reached. but what is concerning from our point of view is the fact that there is almost complete disregard especially on the politicians' side about the consequence, what may happen if indeed they fail to agree on what they're going to do from here. because chances are greek economic conditions will not improve. chances are they may need to see the debt burden being lowered and all that. but the fact that they're so

far apart, so close to various deadlines that are coming is certainly going to add to that uncertainty before long, and if anything, i guess it is my impression from talking to clients is once investors realize, ok, the risk that we're dealing with, while not the central case, maybe not the price that could suddenly get back into the price. guy: you look at the symmetry of this stuff, the risk of its failing, the outcome then is very dramatic. the pricing seems really weird at the moment. you're not pricing in what is a very big risk. >> indeed, and that's really the point. it is a low probability, but it could have huge impact, because all the talk about controls and all that, it's just ignoring the impact, because it takes time to implement all that. in the meantime, you would argue that if the safety nets are in place and ultimately euro may indeed survive,&all that chances are you have to go for a fairly pro tradgetted bout of volatility if indeed

you want to get to that. and i guess for the time being, it feels that that's not really a driver for the moment, so talking about euro, it's really about the e.c.b. diverge sandens all that. francine: thank you so much. valentin thank you. guy: coming up, we're going to hear from a racing legend as he preps the fully electric cars of the new formula e series. francine: let's look ago the norwegian krone versus the swedish krone. guy: the market was expecting a rate cut from the bank this time around, and as a result of which, the failure to deliver that rate cut sending the norwegian krone higher. yesterday, lot of movement in this pair as we did see a surprise rate cut from the swedish side of the fence. ♪

>> first bloomberg. guy: welcome back. you're watching "the pulse." formula e is the world's first fully electric racing series. it's, of course, a spinoff from the world's most popular motor sport, which is formula one. so what does one of formula one's most accomplished racers

think of this younger, greener car race? we spoke with four-time f-1 world champion alain post. >> you don't want to compare formula one. the two things -- first of all, with formula e, we show that the inside this we can rest. we have a show. at the same time, because it's a sport we have some drivers so it's almost to show what the technology is going to be in the future. and we all have the same car, but next year we have year three. >> i have to ask about you the noise. how weird is it to watch these cars peel out of here silently? alain: the noise is not the problem. an electrical car is an

electrical car. we have enough noise with the tires. we know it's like the noise of a small turbine. >> what about the pit stop? don't you wish you could have gotten out of the pit more slowly? alain: it's something not conventional, you know, where you have to stop it is good to show. we do one year, one-hour rest, but with two cars we don't have the potential. but in three years for sure we have only one car. that mean we are going to show the potential. francine: that was a fun interview. what a superstar. guy: alain post, what a legend. more interviews and pictures from the formula e race in miami much that's coming up throughout the day. francine: also coming up, we'll have the latest as the $40 billion merger hangs in the balance, plus, of course, as we head to break, check out this. guy: we're going to talk about the s.m.b. today, the swiss national bank's jordan has been speaking, as you caught a quick

glinches of the press conference there. this is where we are at the moment, but later, jonathan farrow is going sit down with the governor really looking forward to that conversation. ♪

francine: welcome back to "the pulse" live from london. i'm francine lacqua. guy: i'm guy johnson. so, cement giant are battling to save their $40 billion merger. it's crucial not only to the two companies, but also to the irish building company which is seeking to bias sets if the deal goes through. -- to buy assets if the deal goes through. caroline hyde joins us now. where are we? caroline: we're down to the wire. these are two companies that are desperately, for years this has been going on it was april 2014 that the deal was originally agreed. it was announced as if it's a

fete accompli, they'd already done all their due diligence and the like, they had no problems with the fact that in terms of who was going to be taking the reins, what the financials were going to look like, until it started to unraffle. and suddenly we're looking at a battle now that's going on between the two boards, really to try to find a compromise. it looks like we're getting near one. we understand, according to people familiar, that they have managed to agree on a new financial structure, so that basically holcim gets a sweetened deal because the cement maker in switzerland has done far better in terms of sales and profitability than lafarge has in the past year. they want that reflected. instead of a one for one sale, they want 9.1 to one of lafarge. so a sweetener to the deal in that respect. it seems to come down to personality as well. when it deal was first aired, it was lafarge's chief executive who was going to take the head of the entire entity. but sudden it will didn't seem as though he was trusted to get the savings they wanted 1.4

billion per year is what he was promised. perhaps he's too much of a character, cigar smoking, gun chewing, whereas the c.e.o. of holsim is quieter. francine: oh not gum chewing! caroline: how could he? i know i know. singapore might agree. but overall, he's a different character from holsim's slightly quieter c.e.o. it seems as though they have a different executive from lafarg tow take the helm and turn him into the co-chairman. francine: of course, this has huge repercussions, including c.r.h. caroline: they've already sold shares to finance it. they've already sold 1.6 billion euros worth to finance the purchase of these assets in chile and brazil and canada. it's all about expanding themselves globally. the c.e.o. of c.r.e. says this is a key part of their growth, a key part of their future.

biggest deal, they have a meeting with their shareholders today. caroline: there's a lot of investors, the livings vanguard group, who not only have the shares, but also have shares in either holsim or lafarge as well. guy: hol si m used to be holder bank. when was a very, very junior reporter i had to do a banks wrap once on air, and i managed to include this cement company in my banks little run-through, and i will never forget the results of that. francine: junior reporter. guy: not that long ago. francine: you're so young. guy: let's run through the top headlines. francine: federal reserve chairman janet yellen has opened the door for an interest rate rise. the pace of tightening would be

slower than previously anticipated. after the meeting, while the dollar price biggest drop in six years. guy: they've left the rate unchanged. the central bank also said the franc remains overvalue and had says the price, and this is the real kicker, plunging 1.1% this year. i expect that will be a subject of conversation for jonathan farrow when he sits down with the governor, thomas jordan, really looking forward to that conversation. francine: the assailants entered the country's parliament dremsed ads soldiers before taking a group of visitors hostage. they were amongst the at least 17 tourists killed. japan's prime minister has confirmed that three japanese nationals were also killed in the attack. guy: let's go to that story

now. we're joined on the phone by one of our reporters in the region. can you give us the latest, please? >> well, we have the latest we have 22 people killed, including 24 tourists. these include citizens of italy, france, colombia, poland japan, australia, and spain. we also have people wounded, including citizens of italy, france japan, poland and russia. also in the attack a police officer was killed, and the attackers were also killed. the prime minister yesterday identified as their gunman as heightened. we don't know anything yet about their national. he doesn't elaborate. but there was no immediate claim of responsibility. francine: tell us a little bit

about what this means, of course, for tunisia as a nation that is trying to portray itself very open to tourism. they did this successfully, so this is basically a paradigm shift. what kind of impact will it have on the economy? >> well, the government has been trying for the last month to -- guy: yeah. salma, thank you very much indeed. they are joining us on the latest surrounding the tunisian story. we're going take a break. ♪

francine: welcome back to "the pulse." guy: let's business of film, seems appropriate. our next guest, it was film director simon west and producer who join us to discuss funding and support for the film industry. simon directed major feature films such as "con air," "tomb raider" and "expendables ii." they gross the over a billion dollars at the box office. now you guys are getting involved in crowd funding. >> yeah, yeah. guy: we're curious about this. these are really big films you directed in the past. you're now going slightly more

micro, slightly morgan lawyer. >> it's a very different way to fund. there will always be studio films with massive budget of $200 million to $300 million, and then there's independent films which raise money from financial institutions. but that money comes quite spent sively. there's quite high interest rates, and that becomes accustomed to films. an independent film can suddenly grow 20%, 30% in its budget just through those costs, and so we worked out that if we could raise the money in a different way through crowd funding, the money wouldn't have any costs with it, or very small costs. i could actually make a film much cheaper and much more efficiently because of the way we raise the money. francine: crowd funding is great because everybody loves films. you've done films that people recognize. how easy actually is it to rally the troops to say, look, i need money to do this film independently? simon: this is the first film. we're selling quits dfrpblt

from other ones that have been different. it's notize. you got to get out there. you got to market it. you got to get it out to the crowd. but, you know, we've hit our target, and we've exceeded our target now, so we're up to $2,141,000. when we looked looked it was that. we're pretty pleased. francine: the film is about a -- >> it's an aging rock star who goes to thailand with his ex-model wife, and everything goes wrong. so it's an action comedy. it was that kind of, wow kind of film. guy: so what would be an interest rate you would have to pay? i'm curious to know what the spread is. >> harry can talk to that, but i've heard things of 20% to 30%. guy: that's pretty penal. >> and that really affects the backhand this. way, we're aligned with the investors. it's coming through the

website, and they're in line with us. any returns we make, they make exactly the same. unless we make returns, you know we make returns. so it's much, much cheaper doing it this way. >> and it means i can make films more often because it's a less of an upfront outlay, because this is less to put up front so. yes, go ahead and make it. from a filmmaker's point of view, i get to make more films more often. francine: how does the u.k. seem compared to the u.s.? there's a lot of subsidies here. there's tax credits. are you concerned this will change? >> well, i'm pleased that it's increased, because i think the old one was definitely having a great effect on the film business, and it was attracting the big studios, because they are spending $200 million to $300 million, so the 20% is significant to them. i think the raise in that will attract more mid-level and smaller films, which is now the bulk of film making, balls the studios are only making two,

three, four of those mega films a year. all these other films we're going to see are made mostly independently, and so any incentive is great especially the british filmmaker. i want to make films at home in britain, and this definitely will help me. guy: is this going to become the model? do you think this is where more and more filmmakers go? >> i think so, and britain is a great environment to do it because you've got tax breaks, because you've got the film tax credit, george osborne just raised yesterday, and then also you've got the enterprise investment unschemed elements that say, you know what we're structured. so that's really for investors. so, you know it's a very good environment for filmmakers now in britain and so this should stimulate a production here a lot, yeah. francine: do we have the right infrastructure? it's not bad, but it could be better. >> it could be better, but this will definitely help. we have a huge talent pool behind the camera and in front of the camera, and so if you

combine that with a tax incentive, there are other places around the world that have bigger tax incentives that i've got ton make films at, because the finances have said go to this place because it's 35%, 40%, but you have to bring 200 or 300 people with you so that puts the cost up. so if you combine a tax incentive in the u.k. with enormous talent pool here, that's why everyone is coming here and continue to come, even in larger numbers because of that. guy: you guys have been getting creative with the way you finance the model. how much more creativive is there in that particular kind of little niche bit of the way that the films start to be structured? >> well, let's see. we've been really pleased with how well this has gone. we hit our target this weekend, and it's going over the target at the moment, the crowd fund is open till sunday. so, it's a success, and then we release the film this could be a whole new model going forward. so we're really excited. guy: you'd do it again? >> yeah, absolutely. >> yeah, because we hit the target but anything that comes in now will make the film

bigger and better. so i know i can make, it but i can make it bigger and better now. the next one once we've proved it works, the next one will be much quicker and easier get going. it all falls into my plan. francine: where's the money from? is it from all over the world? >> every single investor is a u.k. retail investor that's coming through on the website, and they're all investing, buying shares in "salty film limited, which is a single british company, which will produce the film. and we're shareholders in it and we sit alongside the investors. and also, it has tax relief. guy: they're piggybacking the taxes, so you're sort of building into the company. spaup they're getting their own ones, because they get tax relief. francine: and how do you distribute it? >> this is what -- what do you with independent films you presell it, so we're already

starting to sell it all over the world, starting here, so that's great. francine: when out? >> well, next thing is to find the actors, so now i've raised the money, i've got to go and find the lead actor and the team. francine: guy johnson! >> no need to look any further. >> and then once i found out, then we'll start making it, but it won't be next year. francine: end of next year probably. >> yeah. francine: all right. that's quite exciting. guy: a, looking forward to seeing how the structure has developed, and b looking to the future. you describe it as "hangover" plus "bridesmaids," in between. >> it's an action comedy. guy: use as many boxes. >> it's a really fun film. francine: thank you so much for coming in. guy: ok, let me get you up to speed with some of the bloomberg's other top stories. the world's most valuable company has a new home on the

new york stock exchange. apple begins trading as part of the dow jones industrial average today. telecom company at&t will make way for apple on the exchange. the iphone make her have the fifth highest weighting on the 30-company dow. francine: shares in nintendo surged for a second day after the company said it has plans to develop plans for mobile devices. the move marks an end to resistance to the iconic characters such as super mario on games for smartphone. don't touch super mario. guy: oh, yeah. switzerland is freezing $400 million in assets at over 30 banks in probes for money laundering related to the widening petrobras scandal. nine investigations have been opened and are based on allegations of corruption involving eight brazilian citizens. petrobras is mired in a corruption scandal in which executives allegedly directed money from overpriced contracts to politicians.

francine: coming up -- time is money. literally. when you're selling a $40 million watch, bloomberg got a sneak peek of the latest watch before it's unveiled today. you can see there. it's pretty beautiful. overall it's 130 karats of diamonds. that's next. guy: pretty weighty. our twitter question, after what we heard last night from janet yellen, when do you think the fed will raise rates? let us know, tweet us. ♪

francine: welcome back to "the pulse" live on bloomberg tv and radio, also streaming on your tablet, phone, and of course, bloomberg.com. graph diamonds is setting records in switzerland, where it has unveiled the most expensive transformable watch ever with a price tag of $40 million, you'd want it to be versatile. bloomberg got a sneak peek in london before the big reveal. >> well, this is the fascination watch which we're launching this year. it's absolutely extraordinary, one in the world. so there's 150 carats of diamonds, the biggest one being just under 40 carats, and that's beautiful color and flawless one of nature's true rare gems, and this is probably

the most valuable watch /bracelet in the world today. it's about $40 million u.s. dollars. a piece like this, every single diamond is jointed. it's all moving in every single direction. it's absolutely three-dimensional. it's an engineering draft, and it needed to be planned out very carefully, and that makes it supremely comfortable and flexible on the wrist. i think this will more than likely end up in asia. they have a tremendous desire of fabulous, unique things. they have a cultural afinity for diamonds. and they love owning and collecting fabulous jewelry, and this is probably one of the most important pieces in the world available today. it will generate a huge amount of interest. so there we are. francine: very understated. guy: so i have to say, it doesn't look massively

comfortable. francine: i wouldn't wear it in the tube be if that's what you're asking, right? you'd have to have a certain poise. guy: you basic have the to walk around like this. francine: well not like this but you wouldn't -- guy: or this. francine: it wasn't uncomfortable, but i couldn't stop looking at it it's 130 carats. it was interesting speaking to the c.e.o. because he was very clear that in terms of look and feel and luxuriousness, he sees it being sold in europe. guy: do you think births selling time? this is my curiosity. a bracelet that looks like that, i can slightly get my head around a little bit more than a watch. francine: it's both, right? it's a transformable watch right? guy: of course, of course. francine: is it about telling the time? someone who would wear it probably doesn't to look at the time. guy: no. francine: that's kind of -- i don't think she has trains to catch or deadlines to meet. guy: no no. wow. i'm a few minutes late, better check my $40 million watch.

francine: now, i also caught up with graff and we were talked about the business, growth mans, and his concerns. >> by 2014, we saw our revenues go up tremendously. we had sales growth that was phenomenal. francine: double digits? >> absolutely. topped over a billion u.s. dollars, and our ebitda was up, so we had a very, very strong 2014. we expanded the business during 2014. and while the short-term uncertainty in 2015, we're continuing to roll out that expansion program. francine: are you concerned about currency fluctuation when you look at the swiss franc? >> well, the swiss franc, it's about six or eight weeks ago. there was the abandonment of the cap, and there was a

knee-jerk reaction of 20% i think the first day. but last time i looked on friday, the swiss franc is back to exactly where it started. so i think for financial companies that have had a great deal of leverage, obviously impacted on that first stage tremendously, but running a business long term that has no impact at all. francine: and you were also telling me that in the company, for example, because you've been impacted by russian sanctions, you look at growth elsewhere. how does that work out? >> well, i think that somehow in our business where the product is scarce and there's a demand that outstrips the supply, somehow the slack is taken up always by another region. and there's tremendous growth at the moment in the middle east. there's tremendous growth in asia. there's strong growth in parts of europe, and sudden until america. so that would always outstrip the problems of one particular

region. but certainly it's a concern yes. i hope that the sanctions in due course will come to an end and that the geopolitical risk will be stripped out of that part of the world. francine: an interesting conversation. we also spoke a little bit about u.k. politics. guy: what did he have to say about u.k. politics? francine: he's concerned about demand overall, because he says it's very uncertain and, you know, as someone that does also business in london, he's concerned. guy: ok. well, we'll maybe -- francine: it was quite strong views, actually. guy: i'm looking forward to hearing them. that's it for this hour of "the pulse." for our u.s. viewers, it is "surveillance" coming one tom keene and his team. on this side of the atlantic it is another hour of "the pulse." francine: we'll be talking, of course, about the hidden billionaire behind the chicken empire. everyone in the newsroom is a big fan. but it's a simple model. it works. there's a black card, if you're a celebrity, you sometimes get sent a card, which basically gives you free access free

food for a long time at nando's. guy: i'm still waiting for mine. that takes us to our twitter question. when when will the fed raise rates? tweet us, let us know what you think the answer to this question s. ♪

tom: it is a data dependent fed.

we consider $20 oil. corporate america loses patients with the yellen dollar. it is just like cinderella. your bracket turns into a pumpkin at 12:00 noon today. good morning, everyone. this is "bloomberg surveillance ." live from new york. thursday, march 19. i'm tom my bracket is the worst keene. let's get to our top headlines. here is oklahoma sterns. olivia: once the fed does start raising rates, it has indicated it will go slowly. it has indicated it will be patient in raising rates. she said that does not mean raise will -- rates will not necessarily rise in june. janet