guy: looking for answers. investigators search the crash i of the german wings -- crash site of the german wings flight. cash rate. greece is looking to tap the accounts of the public health system and the metro to help pay its bills. crafting a deal. a private equity firm is looking to buy craft and mergers. -- kraft and mergers. good morning to our viewers in europe. a warm welcome to those waking

up in the united states. i'm guy johnson. we are starting to get details coming through. we will be speaking to hans-werner sinn in a few minutes. the expectation looks a little firmer than anticipated and better than the last time around. the expectations index is better than expected. the data do appear to be getting a little bit better of late. we will get hans-werner sinn's take shortly. let's get back to our main story of the last 24 hours. the german wings plane that crashed in south in france -- southern france yesterday. for more, let's bring in our team of reporters. hans nichols joins us on the phone from the crash site or

close to the crash site. hans, let's start with you. what do we know at this point from the site? hans: we know that the rescue or the recovery operation continues. helicopters have been taking off all morning. i am about 10 kilometers from where they believe the crash site is. it is behind some mountains. one of the challenges they are having with the mountains is that they are very steep. you cannot land a helicopter on a steep mountain. a party left this morning on land. one left yesterday afternoon and came because of darkness. the party left this morning to try to reach the crash site to find the second element of the black rocks -- black box. that has the crucial data

information in it. we know quite a bit from french air traffic control. they frantically tried to reach the cockpit, but got nothing from the cockpit but radio silence. that is one of the mysteries why did it happen at that speed? guy: thanks very much. hans laying out the scenario the dissent the aircraft made. where does the real mystery like? >> the real mystery lies in why the plane started descending so rapidly. normally, it would have to be a choice from the pilot and it would ask permission from the

air traffic control. the plane started going down very quickly. that is just completely abnormal. the air traffic controllers were not able to get anything from the pilot. what was going on in those eight minutes that we had no word from the pilot? i guess you have to assume that if the pilots were not able to respond to several requests from information, they may have been incapacitated in some fashion which would suggest loss of consciousness. some experts are saying there may be a question of depressurization here. if they had not put on their oxygen masks quickly, it is possible to lose consciousness. it has happened before in some accidents. guy: hans, what do we know about the aircraft itself? hans: well, it is an a320. it was delivered to lift anza in 1991 -- lufthansa in 1991.

and it was transferred to germanwings. the pilot had more than 6000 hours. the plane was last checked last summer. it was an old plane, but it had made all the requisite safety checks and it had an experienced pilot. that is what we know from the germanwings and airbus side of things. the a320 is a workhorse. it is a single aisle plan. it gets up and it lands. it is an exceedingly successful model for airbus. there have been some fatal accidents. 12 in total in the history of the airplane. but 12 is not necessarily abnormal when you consider how much it has flown and how many are out there in circulation. guy: that is an interesting

point. this is a relatively old aircraft. people are may be looking at the maintenance records. they fly a lot of cycles in europe. what do we know about the maintenance? >> there are regular checks daily checks, weekly checks, and periodic big checks. the last big check took place in mid-2013. in something like that, you would pretty much take the plane apart, replace what needs to be replaced and although the plane itself is 24 years old, many of the pieces in there would be relatively new. they would put new parts in the engine and wherever else was needed. subsequent to that, there would be weekly checks and there was a check before the -- the day before the accident happened where they checked out the brakes and the hydraulics. there were no indications from the maintenance, at this point that we are aware of 2.2 why the plane had some trouble. -- to point to why the plane had

some trouble. guy: they turn these aircraft around incredibly quickly on the ground with these low-cost carriers. >> there are thousands and thousands of flights like this being turned around daily. germanwings and other companies like ryanair turn planes around like this and that is how they have built their reputation. they have systems in place. if the speed of the turnarounds for a problem, i think we would have many more accidents. we have had 12 accidents within the a320. they have been flying since 1988. there are more than 6000 planes out there. that is not necessarily something you can look at. guy: ok. hans we understand that they are looking for the flight data

recorder. they have the voice recorder. do we have any idea about how damaged the voice recorder is? hans: no. all we know is they recovered it late last night and they began to look at it. we have not heard anything about the voice recorder. they have now had it at least for 12 hours. that is one bit of information. that is one crucial bit of information, what we can learn from that that could shed some light on what happened in those fatal eight minutes guy:. guy:--fatal eight minutes. guy: thank you very much, indeed. we still don't have the full picture. maybe we will get more details as we work our way through the day. what else are we watching? the ecb has banned greek banks from increasing their holdings.

the move comes out of concern that the government is funding itself from greek lenders. it puts more pressure on greece to present economic reforms acceptable to the creditors. president obama has refused to roll out a u.n. led push for palestinian statehood. -- rule out a u.n. led push for palestinian statehood. that could potentially increase tensions between israel and the obama administration. 3g capital is said to be in talks to acquire u.s. food giant kraft. kraft shares sold more than 15% in after-hours trading. coming up, racing against the clock. greece is struggling to keep finances afloat. we will get the take from hans-werner sinn.

that is coming up next. later in the program, i will be speaking to jim murphy. he is set to make a speech about think or bonuses in the city of london. that brings us to today's twitter question. should a bank bonus tax be used to help young scots get back to work? ♪

guy: welcome back. you are watching "the pulse." we are on your tablets, we are on your phone. as greece celebrates its independence day, the government is desperate for cash. the government is rated the public health service and the athens metro for money to pay its bills -- raided the public health service and the athens metro for money to pay its bills. hans-werner sinn joins us on the phone. hans-werner sinn very nice to have you on the show this morning. let's deal with germany. is the low interest rate environment and qe and the cheap euro starting to turn the tide for the german economy? hans-werner sinn: no. that is not the case.

the turn has already occurred last summer without qe. qe is certainly contributing to increasing the demand for german exports. they showed wonderful performance. that is one of the reason why the climate indicator increased again like it has in the previous months. guy: what about the low euro? we have been seeing the decline of the euro for some time. nevertheless we are getting down to fairly interesting levels now. how much of that is a contributing factor? hans-werner sinn: that is certainly a contributing factor to the export performance but it is also the good performance of the american economy to which germany exports. q e is reducing the value of the euro, because there is more euromoney around so the price

of the euromoney goes down. that will boost the entire european economy, and he germany -- economy, germany being one of the biggest to profit. guy: can i get your take on the latest developments surrounding greece? hans-werner sinn: the ecb has already provided greece with extra credit, more than 100 billion euros while the gdp is 180 billion euros. that is quite an extraordinary help for the country. but the ecb does not have the mandate to carry out fiscal

policies such fiscal rescue programs have to be decided by the parliaments of europe and mario draghi is right when he says he cannot step forward unless the parliaments make the decisions. guy: so is your sense that if the ecb were to allow greek banks to continue to purchase more t-bills that that would be monetary financing? hans-werner sinn: yes, which is forbidden according to article 23 of the eu treaty. one of the fundamental agreements. unlike in other parts of the world, the european central bank is not allowed to finance government's by buying their bonds. they can buy government bonds if there is not the risk that by buying them the government issues new such bonds.

here in the great case, it is obvious that the greek -- in the greek case, it is obvious that the greek government needs to issue new t-bills and they can do that only if the ecb buys them because there is no one else buying them. guy: what do you think the effect would be on the german economy short-term ofif greece would leave the fiscal zone? hans-werner sinn: the implication is more on the political side. so some fear that if greece leaves then perhaps some other country might also decide to leave. others argue that if greece stays and can stay because it is financed by other countries, then other countries will also require more financing and find

that greece has received public credit in the order of 180% of gdp which is an extraordinary some, so the other european countries in the ecb system have provided the greek economy with 180% of gdp extra finance, or 324 billion euros which is an unusually large sum which goes beyond anything people could ever have imagined. guy: won't the euro effectively just become a fixed exchange rate mechanism? an erm? won't that be what the euro is seen as by global markets? hans-werner sinn: perhaps, but it is not quite the same. there is the common currency that has been used for purchases in other countries.

the question is can the euro be something like the dollar even though the united states and europe have not been founded -- the united states of europe has not been founded? clearly, if you have a common currency you need that discipline. america has debt discipline for the single states. of california goes bankrupt, it cannot hope that the fed will buy california government bonds. the fed just does not do that. it buys federal government bonds , but not the government bonds of single states. the same with minnesota or illinois. you know, that is the big difference in europe. we are currently holding the thing together by the ecb's buying local government bonds and that is a big temptation to issue more of them. guy: so your sense is that it would be desirable or not

desirable for greece to leave? hans-werner sinn: i think it would be better for everyone, in particular for the greek people. by keeping them in the euro yes, they do receive more public credit from other countries, but that does not generate jobs. greece is kept in a permanent situation. it handicaps the export industry . that is the problem in greece. the wages have increased enormously through this credit flow from outside other countries to greece in the period before the crisis. first it was private credit and now it is public credit, but you cannot permanently run an economy on an inflow of credit from abroad. this really destroys your own

economy because everyone lives on these funds coming from abroad rather than producing goods to her in money instead. -- to earn money instead. guy: hans-werner sinn always interesting to talk. thank you for sharing your thoughts. hans-werner sinn, the president of the ifo institute. we will have the details of the potential kraft deal next. check out the reveal of the new jaguar. it made a high wire debut yesterday. yes. you would need to be a stuntman to attempt that. nice work. we will leave you with the pictures. ♪

guy: good morning. welcome back. you are watching "the pulse." 3g capital is an advanced talks to buy kraft.

caroline: maybe you fancy a bit of heinz tomato ketchup with your kraft macaroni and cheese. that is what could be happening if 3g capital does get its hands on kraft. they are in advanced talks and we could hear about a deal as soon as these weeks. the plan is to combine these two juggernauts of the food industry. interestingly kraft is worth $36 billion already. that was prior to the speculation voiced in the press. what price tag are they willing to take? under this deal, we will see two juggernauts of the investment community come together once again. berkshire hathaway and 3g capital. they previously bought heinz together two years ago when they combined their power. more recently, one year ago

they worked on getting burger king's acquisition of tim hortons the canadian maker of coffee and doughnuts. they joined forces then and they are going to like berkshire hathaway's expertise when it comes to kraft. they are a long-term holder of kraft stock. warren buffett did not like what was going on in 2010, he said in his usual blunt way that both deals were dumb that kraft was doing. it looks like he has his appetite back for kraft. after-hours trading we saw the share price up 17%. there we go. it is up 16% currently. what will the price tag be? many say it will be $40 billion. it could be even higher. guy: thank you very much. indeed. building brands on youtube to read we are going to go live to adweek to find out how the video

streaming site is working to increase its advertising appeal. that interview is coming up in a couple of minutes. ♪

guy: good morning, everybody. welcome back. you are watching "the pulse." we are here in london. i'm guy johnson. a quick look at the markets. not much of a trend coming out of asia. the markets are gapping and little bit lower. we are pretty close to all-time highs. let's not get too distressed by this. a sense of direction is required for the equity markets to

maintain momentum we have been having of late. maybe a little bit of central-bank parity would go a long way to achieving that. let me bring you up to speed with some of the major currency markets. we have the euro-dollar just up through 1.10. we are actually up 0.3%. better than anticipated on the euro front from the ifo. germany is still very much on the front foot. again, everybody is watching very carefully to see what is going to happen with greece and the ecb. the ecb is effectively making it clear that the greek banks should not buy any more t-bills. they are concerned about the monetary financing aspect of this. with non-greek banks the yields may not be looking to roll over and the could be a crunch point coming up.

it is mid april that greece is going to run out of money. let me bring you up with other top stories -- up to speed with other top stories. the way has been paved for the biggest u.k. wireless provider after hutchison buys 0o2. telefonica expects the transaction to be completed by june 2016. airbus has said it plans to sell additional shares in the gaso aviation. -- dassault aviation. the disposal has a value of about 1.7 one billion euros. airbus will use the proceeds to fund growth. brazil is scaling back reports

of the real. they are scaling back the central bank forecasts. volatility has been a report -- story for brazil. it is the third day of the ad week conference in london. my colleague francine lacqua is there. fran over to you. francine: thank you so much. very excited. we are joined by the head of youtube brand propositions in europe. thank you so much for being here with us. your role is to find brands that want to invest with youtube. what is your biggest challenge? >> i think what our challenge is is to take this huge democratization we have made in

content creation, we have more than one million creators putting content onto youtube and they are doing that from any place on the globe. we need to make sure they get return for that content. that means a bit of education for the brand. it also helps brands to connect with the content they make. francine: how worried are you about pricing? you need the content to be a push prices up so that your margins are big enough. >> we run through a proprietary product at auction. brands are paying for the audience and that is going to change the dynamic between the content and the brand. we want to make sure that when our creators want to produce even better content, there were ways for them to be able to get different levels of return for that. we use things like sponsorships

and also programs such as google preferred where we take the top 5% of our content. francine: content is the big buzzword now. we talk about it every day. how worried are you that facebook is also growing in that market? >> it does not worry me. it does not worry the company. competition is healthy in any market. as far as innovation, the challenge has to be even better. we are 1.2 billion users per month large and we are still growing. we are growing incredibly quickly. there are 250 billion dollars spent on television advertising and five hundred billion dollars spent on advertising overall. francine: you have a new cfo. she comes from morgan stanley. her big thing is how to spend money or how to trim cost? you are sitting on a lot of cash. >> i think a big job will be how

to follow in the steps of the last cfo, who did such an amazing job. i'm not going to speak for the choices that are made by the new cfo, but i think we need to focus on what is youtube how do you hold up such a platform with so much content? it takes a huge amount of engineering resources. we want to make sure the investments are made right there. when it comes to content themselves, there are choices we will choose to make in the next couple of years. we are always learning. francine: do you think that youtube will be vastly different in 45 years -- four to five years? will you have to diversify a lot more to directly give people what they want? just to make that silo is little bit smaller? >> the core of youtube will be

exactly the same. but the way that we deliver may differ. we recently launched a subscription-based project for music. we also have a program for kids, where they experience different things on tablets and mobile. we are going to innovate with different things. francine: what are the brands that you are worried about? we talk about net neutrality, the internet of things we talk about mobile. is there something that you make sure you don't get wrong in the next four to five years? >> the industry has been wrestling with mobile for the last few years. more than 50% of all views on youtube are from mobile. being able to transfer things to a mobile device through youtube if we can think up a simple and elegant solution to the mobile

problem that will be one of the key that'll for us to win. francine: i'm still surprised at how much social media -- how do brands react to it? it seems like personalities are stronger than brands. do brands want to be associated with them or create their own personalities? >> great question. i think youtube has helped to change the rules in the game of fame. it is now dictated by the people. people become popular because they create content that connects with people. brands love that. they love the idea of being able to do that by themselves. we help them learn from the tens of thousands of incredibly successful channels. i think that what we will see over the next few years is that brands start to less luck like advertisers and more like publishers or personalities in the way they connect with audience.

francine: it is the most impossible to go viral unless you pay big box. -- big bucks. >> if you look at the viral success stories of the last year , they were all backed up by some level of advertising scheme. there was some level of fiscal mass. i think that a smart marketer will try to build stories which pull the heartstrings in a way that people want to share them. they will also use advertising and media to make sure they get to the right people at the right time with that message. francine: do we use much -- you too much differently in europe than we do in the u s? >> i don't think so. youtube is a global platform. you see different behaviors and may be different content in

different markets. i think that is one of the really exciting parts of the platform. it can be the basis of different forms. that is part of the fun. francine: you can look at really strange things on the internet. is there anything that surprises you when you look at the appetite for certain amount of content? >> last week's solar eclipse was very interesting. we had official content coming from news publications. we had amateur footage shot by people watching the eclipse. than we also had the very popular science channels on youtube. we talked about the how and the why of the lunar eclipse. francine: a final question. you showed up with your very cute dog. you bring her to work. >> we have many dogs in the

office. it is a reason to smile. you should really try it up bloomberg. [laughter] francine: thank you so much. there you go, guy johnson. we are going to get a dog or maybe just an animal. if we were to have a mascot on "the pulse" what would it be? tweet us. guy: i think we have got some pets, they are in huge fish tanks next to the studio. if we get a cat, how would that interact with the fish? francine: a cat. or a ferret. guy: i am liking the idea of the ferret. thank you very much indeed. we have been asking several leaders in technology for their take on what happens next in the advertising industry and whether traditional advertising still matters. take a listen to this. ♪

>> advertising is more relevant than ever, but it needs to be driven by brands first. we need to rethink how we buy advertising. it cannot be on a quarterly campaign basis. it needs to be a plan with select partners. in that way, advertising is more relevant and important. >> there is absolutely room for traditional advertising. it is great to have a combination of digital and traditional, but you have to figure out what the customer is going to see and where they are going to see it and what they are going to respect. >> we don't have an advertising agency at the moment. we are more focused on mobile distribution. we are focused on, how do you optimize your presence on app stores? how are you trying to get your brand recognized on those platforms? it is not about above the line marketing or being on a banner ad. i think we have nailed the zone

and it is more about getting prior engagement. >> traditional advertising is one of many sources that we use. we do advertising in cinemas radio, tv. we advertise in stores. we have a story that we want to tell the whole world. we use as many of these avenues as we can. we fund a lot of our products and it is critical that we talked to traditional advertising buyers and explain to them how that can complement what they do today. we are reaching an audience that are not always the easiest to talk to. >> we have two sets of customers. the consumers and the drivers. we find that word-of-mouth is most effective. a large portion of our customers sign up because they have heard from a friend. they have got a first free ride. we believe once you get them in

the car and have the experience, they will write again. -- ride again. guy: interesting stuff. we will be back. up next, president obama signals a move that could make u.s.-israeli relations even chillier. we will tell you what has been set after the break. you can follow us on twitter. ♪

guy: welcome back. you are watching "the pulse." as we continue to monitor developments with regard to the crashed germanwings aircrafts, take a look at some of the numbers behind the a320. often described as a workhorse these numbers back that up. how many aircraft flying? massive amounts. 3673 in the air. 314 operators. average age worldwide, just over eight years. average age in europe, just over nine years. some of the biggest low-cost operators in the world use this aircraft. air asia is one example that heavily relies on this fleet. easyjet is heavily reliant on this fleet. ryanair flies the 737.

this is an aircraft that somewhere in the world is taking off and landing every two seconds. that gives you the idea of the scale. just to put it into context and give you a sense of what this aircraft actually delivers around europe and around the world. we are back to that story very shortly. in the meantime, barack obama may not block a palestinian move at the united nations. it would represent a major policy shift. elliott gotkine has more. this all seems to be coming from net and yahoo!'s ruling out of a palestinian state. this is the response -- netanyahu's ruling out of a palestinian state. this is the response. elliott: benjamin netanyahu was desperately trying to shore up

his votes before the election. he implored voters to get out to the voting booths. he apologized if he did offend anybody. he rolled out a palestinian state if he became the prime minister. you would still have to have talks, negotiations, reach an agreement, have an implementation. certainly, from the white house perspective, netanyahu effectively reversed his support for a two state solution, which he made in 2009. president obama: we believe that two states is the best path forward for israel's security palestinian aspirations, and regional stability. that is our view and that

continues to be our view. per minister netanyahu has a different approach -- prime minister netanyahu has a different approach. elliott: the new israeli government has yet to even be formed, but it seems pretty obvious that netanyahu is going to be prime minister again. officials from his party have been rushing to announce that -- denounce that the u.s. may be less supportive of israel and the united nations, saying they should be more focused on things like islamic state than worrying about israel and palestine. guy: how will this actually work mechanically? how will the sexually work inside the u.n.? -- how will this actually worked inside the u.n.? elliott: we're not sure. you could see it no longer

vetoing resolutions that it would traditionally seen as being biased against israel. perhaps it would not veto things or be more aggressive and support something but that seems less likely. any change in the u.s. policy from what we have seen in the past would represent a major shift. it would also put personal relations between netanyahu and obama into the deep freeze. the really interesting thing about any change in policy is the impact it might have on the presidential campaign. republicans are distancing themselves from obama. what does hillary clinton do? that will be interesting to watch going forward. guy: a lot of things still to sort out. elliott got can, thank you very much -- elliott gotkine, thank you very much. people are gathering for a

minute of silence in cologne, germany to remember those who lost their lives on the germanwings flight that crashed into the french alps yesterday. obviously, a great day of mourning across europe. both spain and germany are very much following this story. we will take a break. ♪

guy: welcome back. you are watching "the pulse." we continue to monitor things coming out of germany, spain and francis we try to figure out what happened to the german bank -- germanwings flight that crashed yesterday. what will the investigators be looking for today? chris: the great mystery remains. this rapid dissent. -- this rapid descent. plunging thousands of feet in eight minutes. it seems that there was some controlled descent. that breaks all protocols that there was no communication. the tower was aware. air traffic controllers were aware. there was a problem. it descended rapidly. they attempted to contact the plane. there was no response.

that could suggest any manner of problems. we just don't know. guy: it was not at its cruising altitude for long. chris: for a minute. it had climbed to 38,000 feet roughly 60 seconds and then eight minutes down to ground level. but still, in some form of controlled flight rather than a steeper descent that would suggest a catastrophic loss at cruising altitude. the scattered pattern of the debris seems to show that it hit the ground in time. guy: could there be a depressurization? chris: it seems like a strong possibility. especially in a situation where there was an air loss that was not catastrophic and the pilots just were not aware of that and did not reach the oxygen masks until it was too late. guy: thank you very much

indeed. we are going to take a break. "surveillance" is up next for u.s. viewers. ♪

tom: ruth returns west. we consider the return of palo alto. good morning, everyone. this is "bloomberg surveillance." we are live from our world headquarters in new york. i'm tom keene. joining me, olivia sterns and brendan greeley. olivia: a brazilian billionaire who bought heinz is eyeing another american food company. they are in advanced talks to buy kraft foods. 3g would merge kraft with heinz. shares are soaring in the premarket. up about 16%. 3g also owns burger king. in france