as i said, i would welcome a softer euro. a bit lower euro.his is different from the exchange dynamic short-term. >> that was italy's new finance minister padoan. and we will bring you more of that conversation at the top of the next hour on "the pulse." moving on to one of our top stories this morning. lloyd's released figures delivering a 22% rise in quarterly profit. manus cranny has been digging through the numbers. first of all, what is the key take away? down.airments are things are getting better at the quasi-nationalized banks. pairments have dropped by 57%. the amount of loans you are concerned about, costs are declining by 5%. the headline pretax number, the earnings of the bank, also rising and beating what we yought about minutia that have to deal with if you are a banking analyst which is net interest margin. they told us early in the year, it will be top earning money on what we hand out. it will be tough to make good margin. guiding higher for the year. it is getting better. it is a three-part story which is good news. if you're

the stronger euro as well. >> as i say, the focus very much on the strength of the euro.s. the single currency, of course, is appreciated roughly 0.5% against the dollar since the ecb's last meeting and mario draghi previously warned that a rise could trigger policy action. this is ceos from across europe have been telling us that the single currency strength has been hitting their bottom line. here's a re cap of what some of them have had to say. >> single biggest challenge for global companies will be the currency fluctuation, particularly with a strong euro which will lead to regularly reported numbers. >> the foreign currency exchange rates across the world against the euro are all weakening. that is worsening quarter by quarter. >> we gave up five points in currency. having said that, we beat in the cloud and on revenue. so here we are. >> we even heard from the munich re cfo. the euro/dollar 139.43 this morning the two-month high we hit on tuesday was 139.52. we think the threshold for paying for the ecb is around about 140. elsewhere, dollar/yen, that's not far off

the effects of the euro.ion is the ecb to drive down the euro? >> i will not comment on macro events that are not my domain of expertise. i'm interested in managing our own exposure in terms of currency fluctuations. that is something that is very much under control, as far as i'm concerned. find that from our perspective, we can adapt to changing circumstances at the macro level in the most efficient manner. >> great to chat to you, thank you. lucent cfo speaking to us from paris. these are the bloomberg top headlines. ukraine's leaders say they're ready for peaceful dialogue with representatives in eastern regions. >> you asked your guest, should the european central bank act? you will struggle to find a bank that is not calling for action right now. mario draghi turns around and said we are comfortable acting in june. they use this meeting to discuss the one coming in june. june 5 is the date for your diary. start of the q&a to defend the central bank's independence. next month, he will be defending their

as i said, i would really welcome a softer euro, a lower euro.nt from the exchange dynamics in the short term. morelower euro would be in-line with the fundamentals. interesting quote there from the interview francine day. italy'sw with finance minister. our next guest said the eu has an identity crisis. roger is managing director of capital economics and author of a new book, "the trouble with your." -- "the trouble with europe." aying it would nice to have lower europe and we need to get the economy back on track. the relationship with vicki you at the moment is stretched, difficult. with the euionship at the moment is stretched, difficult. some people say that u.k. should not be part of the eu. can i make the same argument for italy or spain? with a be better off out? >> it is possible. the first best thing we should be aiming for is to reform the eu. we are going to need some sort of common european association. it would be better if we reform the eu so that it serves our purpose is better. there is a question mark about how one is likely to

euro/dollar, 1.3675.own at six-week lows at the moment. >>> still to come, the rescue effort continues at the site of what is set to be turkey's worst mine disaster. we have a report from the scene after this. >>> you're watching "worldwide exchange." >>> recap of the headlines, trouble in the eurozone, first quarter gdp well below expectations. don't go short but not too long, either. leading hedge fund manager david tepper warns it's nervous time for investors. the rescue effort continues in soma. the death toll from the turkish mine disaster climbs to 282. >>> staying in turkey, trade unions have called a one-day strike to protest at what looks set to be the worst mine disaster in the country's history. the blast at the soma mine has claimed the life so far of at least 282 workers. dozens more remain trapped underground. nbc's richard engel filed this report. >> reporter: there is not a lot of activity at the mine right now. the rescue operation has been suspended overnight. the hope is come morning, t

a man 172 trillion euros in the euros millions and he is 72ting -- a man won million euros in the euros millions and he is donating 50 million euros of it. he said he does not have children and he wants to donate to charity. a very nice guy, i must submit. >> that is right. i could see some good things being done here. thank you very much for the a look at the headlines across the world. stay with us. it is time for a sports update. france continues their growth up to next month world cup in brazil. they have been gathering momentum ever since they beat ukraine in the playoffs last november. i think something has been happening for a while since the second day against ukraine. we feel good inside this group. .here is a good atmosphere and since monday, everything has been going ok. we've been preparing at 100% for the world cup, and the group has been living very well together. it's great. the first game against norway with good results was a good omen for us. >> despite a crushing win over defend they had to performance of midfielder. >> obviously, yes qualities above the average. but

i think them being within the euro, the euro itself has acted like a crucible that has made it essential for companies to take really tough decisions and put these reforms through. i think that is what we are seeing now. >> it truly is a sign of progress. rating level.a b four years ago, i was with francine lacqua for the first overnight meeting where they bailed out greece for the first time. a lot of progress there, which you have covered every twist and turn. german business confidence numbers, ifo coming out. we were expecting confidence to decline, but we are a little bit shy of forecasts. what do you make of the numbers? >> a little bit shy of forecast. the interesting thing is to look behind the reasons for that. what i want to know is what german businesses -- there are 7000 businesses which are surveyed here. what they are doing in reaction to what is going on in the ukraine and russia. are they delaying investment? are they delaying plans for employment? we are going to speak to the president of ifo later in the program and these are the sorts of questions i want to hear the an

as i said earlier, i would welcome a softer euro. a lower euro.an the exchange dynamics in the short term. >> francine is here. good morning. he has not been on the job long. >> two months now. politicalabout reform. the guy that for a long time was working at the imf during -- the imf. he is a numbers man. he talked about gdp. he thinks in italy we could be above forecast. this is the time to act. he is confident that the prime guy that ise blowing everything up because of his energy and youth, will be able to push it through. he talked about the political stability. this is probably the biggest problem in the last 30 years and italy. it seems the troops have rallied. he is quite excited about this. the new don. -- dawn. >> he talks about complacency on the markets. worries that when the italians get the presidency in june, there is going to be too much complacency because mario draghi is saying to take the tail risk off. he says it is great mario draghi is giving us more time. there is a danger that amongst all the elite, they say he is taking c

they talked about the strength of the euro.ried about the strength of the euro against the ruble and the u.s. dollar. they have had difficulties with their big competition which is coming from nike. so much so that one of their biggest shareholders, this is union investment. findut a note saying they it incomprehensible that isrbert heiner had h management contract extended through 2017. they came back on the defensive. theynote was one-sided, said. you can see the intense pressure herbert heiner is under. >> what is the plan? fatefullan is the world cup. i will read to you some part of the statement from today has earnings announcement. herbert heiner saying later this month we will unleash our largest football offensive ever ahead of the world cup. the energy and intensity of our campaign and product concepts will be a clear statement and sides of things to come from our group. for most of europe, germany in particular are important to herbert hainer. what they are planning to do when it comes down to their new product on jew

believing the best training routine that made it to the final of euro. i love teaching the city's history friend who was in. this time it's not something safety. still for the champions league trophy did you go to madrid. it's important to know that i walked up to you. rio bid to stop worrying. not that they are getting nervous. to find an idol. i'd seen and the fells to much joy in my life where a new european final. up to forty years everything's perfect. no would be surprised to see velvet drapes and weeks of the attack. it is a good night the custom of sending thank you and your faith in the case concluded that it acted to cope with this debate at the empty tomb this may keep the two teams will likely lose real boss may help explain so individualistic it's a single units. being part of the mexican mr it is something to be proud of the many newborn haven't seen you cannot get up and waited this is what happens in this pretty tacky and sneak into a baboon with the stunned fans that time. the technique of the three games together sydney the eighth pole

so it will be somewhere in the area of 23 euro to 25 euro. the qataris are also saying they are exercising some of their rights. ross, with that, back to you. >> annetta, good stuff. thank you for that. we'll have more from annetta's interview with anshu jain and you can see it on cnbc.com. >>> still to come, euros bounced off a two-and-a-half month low after two weeks of declines, so what happens this week for the currency markets as we get fed minutes on wednesday? we'll find out. >>> former chair president ben bernanke speaks today. and richard fisher in san francisco will also appear at the same conference this afternoon. and we get earnings from campbell soup. before the bell, we turn to our reports after the close. u.s. futures are indicating a lower start at the moment. the dow last week was down with the nasdaq up 1%. this morning, dow futures are about 59 points below fair value. the european equities are also lower ahead of the u.s. open. the ftse and the cac are down 2.6% today telling government yields a little bit higher. and fin

it would just mean a reduction of 10% of the value of the euro and still 20% higher than when the eurod. >> behind you is your a350. you have landed here in germany. contributing to the a350 project. why did you bring the plane here? do you expect germany to contribute? >> is not really true, germany contributed archly. than 20,000 people in germany. i have 4000 people working on the a350. they all deserve to see this fantastic aircraft heard >> do you expect germany to make its full contribution anytime soon? >> there is a new government and want to enjoy excellent relationship with germany. we need their support. the aerospace business needs the support of the government. this is why we are here and we are showing what we are very proud of, the a350 and he. a peacee a350 is on mission here with the new government. >> is about to finish development hardware moving to certification. we are not focused on anything else than this goal. >> when we talk about your other line, your big 380, is going to get some stiff competition from the new boeing claimed territory going to do to update th

their price target is 43 euros.t will be interesting to watch that stock when it opens in under an hour. >> david, thank you very much. coming up, if you need a reason to celebrate new talent -- nutella, you now have one. from humble beginnings to world-renowned and the billion-dollar fortune. ♪ >> let's talk about chocolate spread. half a century ago today, the first batch of nutella was made. jessica howard reports on the hazelnut spread. >> the italian spread that has nothing to do with the financial market. 's holding birthday parties for itself all over the globe. it was born after world war ii. when food rationing forced pastry makers to add hazelnut to their chocolate. now it is a cold classic with more facebook fans and jay-z -- now it is a cult classic and has more facebook fans than jay-z. this was something solid that you could cut with a knife. that is the origin. >> his efforts has become italy's richest man, worth more than 25 billion dollars. the company that bears his name also makes chocolates and t

current will drive euro-dollar. we think it will drive the dollar stronger. >> we have been waiting for that for two years now. >> we are finally going to be right. we think that it is going to be the short term. >> what is your take on the bank of england? is it the right time to deal with rising home prices? >> i think macro policies are going to be the way to deal with it. we are seeing good growth. outside that very odd london market which is very international, for the rest of the u.k., i think there will be a great deal of pain for house buyers. >> what does that mean for your cross asset strategy? if you look at central-bank policy, would you still buy a lot of u.s. equities? they seem to be a good value and then we see the cutoff intact. are we looking at a huge correction? >> what we are worried about at the moment is china. we just lowered our china growth estimate. we set out a tail risk of 15%. in 2015.l be 5% growth less people moving to the cities. the people moving to the cities are not the ones that

net profit came in at 161 million euros.sold more than $30 billion worth of assets over the past year. they told us yesterday they had finalized the sale. they had been shifting away from content,nd more toward production, and distribution. what they will do with the proceeds of those sales is the key thing investors have been looking for. they have been talking about using the money they will receive to pay down debt and about returning some of the cash to shareholders. the exactly the details of cash return will look like is still to be discussed and how much m&a they might be doing themselves into newer areas. they focused on content. could there be some m&a coming through, that is something that some investors have been talking about. no comment on those strategic issues but first quarter numbers for event -- four vivendi coming in ahead of estimates. >> the french gdp is a mess. rose.ing spending what you have got here is government spending rising. suitably underwhelmed. >> given that it is coming from france, not real

and for euro, a lot of that is priced in. the key for euro is looking up flows.o, so i think that position is key and the bond yields in the periphery, today we see them lower and we need to see them bottom out before we are likely to see the euro move lower because this year has been a story all about flows for euro. >> okay. camilla, thank you for that. steve, stick around. we'll come back to you for some more thoughts as well. european equities are up as we go through today's session. the u.k. market is closed. more to come on "worldwide exchange." we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zi

and the euro/dollar, 1.3707 at the moment. we've seen three big figure moves for euro/dollar in the last three sessions as well. dollar/yen, very much in the ranges at 1.02. on that note, let's find out what's happened in asia today. we've spoken about sony, of course. what about the rest of the markets and the stocks there? sri is with us out of singapore. pe low. >> very good morning to you. we saw another record close on wall street overnight. as you mentioned, the currencies are very much in focus, dollar/yen still seems to be on the offensive. 101.50, 101 seems to be the lien in the sand in terms of mather support levels. interestingly, we've also seen euro/yen on the defensive. we see the move lower below 1.40. that could hurt as some of the export stocks that have a strong footprint relate to europe. watch for further yen appreciation. if it does happen, i could put those stocks on the defensive, those stocks correlated to the story in europe. elsewhere, i do want to talk about the politics. because we're seeing strong

under 400 million euros.io tinto cutting jobs as its following gold mines a review aimed at reducing costs. they declined to give the number of positions affected. expansion has been stalled. been underent have talks for a year following the expansion of the mind. welcome back. >> european leaders are wrestling with who will lead the european commission. let's take a look at where the economy is heading. great to have you with us this morning. has run alike merkel job on her hands, deciding who should run the eu. is it important we should see a change? is especially important now. the question is do they want a change? not sure [indiscernible] the starting point is for the first time the european parliament were supposed to have its say in who would be leading the european commission. within the head of state they should look at who is [indiscernible] with renzi. same has not gotten the [inaudible] merkel'st come down to decision to back junker? >> she [indiscernible] onlynnot be the candidate.there is intera

. >> another anniversary this tuesday, the 20 year anniversary of the euro tunnel that links england to france. when that was first dreamed up at the beginning of the last century, it was considered a pipe dream. france 24's olivia has more on how that finally became reality. >> cordiality building transnational bridges under the sea. 20 years ago, queen elizabeth ii was joined by french president to inaugurate the euro tunnel, a feat of modern engineering. financial woes have plagued the project for most of it existence, over one billion euros in losses in its first year. investors were disappointed with traffic and rows pull share prices down in the late 1990's. in 2007, restructuring was the last resort. >> the euro tunnel group has kept everything good about the company, efficient operations. now we have drawn a line under the financials. we're at a different place with different prospects. >> in 2009, the tunnel became profitable. last year alone, it brought in 100 million euros. >> the upturn started with the 2012 olympic games when passenger numbers jump up by 10%. that is whe

euro stoxx 50, off by a similar amount, fishing at 3160 three. over new york, the dow jones industrial average is also trading down by nearly a full percentage. and the euro, down against the dollar, 136.99. >> going to a short break. when we come back, more on the floods that have devastated large parts of the offense. >> we will take you to bosnia and to serbia where entire villages have been left in ruin. >> so, keep it right there for the next 60 seconds. we will see you soon. >> welcome back. the balkans are flooded for another day. this time, two large rivers are set to peak at the same time, the sava and the danube. >> emergency services have been laying kilometers of sandbags to boost the riverbanks. >> elsewhere there is the chance of disease and infection as the waters receded. as well as washed up landmines in some villages in bosnia. >> the floods have left rubble and mud in their wake. in the northern bosnian town, the cleanup operation is already begun. the scale of the disaster has brought back memories of the destruction caused by

citigroup says that could rise to about 43 euros from 30 euros. >> david tweed joining us from berlin. >> europe goes to the polls, will a new parliament be able to reform the eu? we will discuss. ♪ >> hundreds of millions of people will eligible to vote in regionwide elections. weston half are expected to participate -- less than half are expected to participate. hans nichols has the story. gettinghallenge is europeans excited to vote for a parliament with little power. our dissipation has to climbed 62%.most 20 points from more than half a billion people from the 28 member states are eligible to participate in the largest transnational vote in history. the partiesturnout, have nominated candidates to be the president of the eu commission. hence the slogan, this time, it's different. 751 seats are at stake. the larger issue is the eu response to the debt crisis. unemployment has remained elevated. will strong showings by the uk's -- simply serve as a warning to national governments that they have ceded too much power to brussels? strong turnout from voters opposed to tighter european

he is artie talked about the strength of the the the euro laying into this inflation. if the fed stops or contracts, you could completely reversed the euro dollar and go down to -- 21.3 oh or 1.200. >> maybe they won't lend the money. could be some unintended consequences. if you put cost for the bank, they could pass it businesses and consumers at home. the theory is that they lend more. in practice, they haven't got a clue. >> certain voices are saying the ecb does not have the mandate to do this very >> the political hurdle is massive. germany -- >> far right parties in france and the u.k. took an unprecedented first place in elections for european parliament. former italian prime minister mario monti was on tv earlier this morning in an exclusive interview with manus cranny. manus started by asking him if national governments should be concerned. moreey should be listening and speaking differently. toy should be listening more ,heir domestic public opinions because the mounting wave of andlism was there, clear visible, already since a few years. they should also be

says authority is seeking more than $5 billion or 3.6 billion euros. officials are discussing a settlement over allegations the bank violated u.s. sanctions on countries like iran and sudan. and that is the business news for now. back to you. >> thank you very much for that update. ourit is time now for caught upate, and we with american actor john q sack. take a look. >> hello there. cannestime for another rendezvous. this attracts thousands of fans from all over the world. this year, the official selection, and there is the david cronenberg map to the stars. money grubbers and more. it gives us a vision of hollywood that not as we know it. john q sack. >> i hate to be leaving this on but i know and respect the reasons. >> it is amazing. >> this is not a very glamorous job. >> i was in a fire. our lives, randomly. >> john, thank you for being with us. >> thank you for having me. have been working in hollywood for the past 30 years. is hollywood as terrible as it be?ish -- as it is made to >> it could be anywhere. it could be silicon valley, it could b

if that euro spot is pumping upwards, even by their own calculations, a 10% move in the euro cuts inflationn by about one percent, roughly. the can't afford to have a stronger euro, either. >> thank you very much for joining us. have a good weekend. strategy atency hsbc. leave youto break, we with a taste of high fashion. a star-studded party. >> a major brand statement. we are very happy with this opening. this weekend, france in the clot takes us inside fendi. stay tuned for a half-hour special on how they have perfected the craft. "on the move." " will be back in just a moment. ♪ in london. edwards this is "on the move." rbs shares are on the move this morning. this after first-quarter profit tripled and beat analysts estimates. it didn't see any additional costs for customer compensation, not let -- not yet at least. caveatcould you put that in on a morning when ross mccue it is sitting on the boards going oh, thank god. sinkedse, the kitchen everything. these numbers are good. first quarter net income tripled. it was triple where it was last year. the market was looking for a loss. whe

the euro went up by 4/10.icians, across the eurozone, the exporters, what is going to push the euro down? we are above 1.39. no ecb talks until thursday. expectations of the ecb are pretty low. who was going to talk us down? janet yellen? she's the smart. is that -- she talks tomorrow. is that enough? don't get your hopes up. >> don't get your hopes up, john. >> coming up, lufthansa presses ahead. we will be speaking with the company's chief financial officer. >> as we head into break, let's the oscars of the fashion industries. event, whitethe tie, apparently. ♪ >> welcome back to "the pulse." this is some of our company news today. coca-cola plans to move a controversial additive from its strength after bowing to pressure from food activists. at --gredient is a bvl 30 bvo. it is used as a stabilizer and drinks like power aid, to prevent other ingredients from separator. there is something you want to drink. french cement maker says harsh u.s. weather and the appreciation of the euro weight on sales. they're

how does that play into the euro elections?t of an anti-eu candidate but he hasn't come out forcefully on that. >> no, not really. he made some outrageous remarks against germany, but i don't think that he is that much of an eu politician. there are other political forces that embrace anti-eu claims more vocally. i'm thinking of the five stars movement. but getting back to your question, where is the relation between the arrest and the european elections? well, there is one political force in particular that is saying that it is supporting, explicitly supporting public prosecutors, that is the five stars movement. what i see is an increasingly bipolar system. we're back to a bipolar world of the only difference with what we previously knew is that it's no longer center right against center/center left. it's reformists, so those who are in the institutions inside and those who are radicals. who are opposed to reforms and want to bring down the current infrastructure architecture. >> francesco, good to speak to you as always. fra

he said yes, the euro strength can be a problem, but if it is a symptom of flows coming from the euro-zoneelds, it has a stimulus effect. it didn't sound like a man that was overly concerned about the euro. we want to listen to what he has to say. >> we have had two c.e.o.s and one c.f.o. on this morning from european companies. it is hurting. >> all the finance ministers over the peripheral countries are saying that. >> really, the bottom line is a worsening inflation outlook. is he seeing any of that right now? probably not. >> hans, let's go to you. let's go to capitol hill. let's talk comcast. >> time warner, comcast are going to be doing a test run, a dry run on regulators on why they should be allowed to merge. it seems to me there was a center of gravity with regulators. they will be approving or disapproving of all of these m&a deals. it is not just comcast, time warner. it is sprint, t mobile. they will hie off a certain amount of cable subscribers and they should still be allowed to merge and cover 1/3 of u.s. geography. cable wars are just about to get really interesting. guy? >

it talks about a cash machine money, 22 lot more point 7 million euros over a longer amount of time. >> francois hollande and his socialist party came in in a dismal third, in these elections here in france. we have magazines talking about their chances. >> really, we still have three more years of francois hollande, after a stored beating in those european elections, with 14% of the vote. a very disappointed looking francois hollande here on the page. this is part of a wave of panic right now, and even though he is vowing to have the courts it is program, he is at an all-time low in opinion polls, so they wonder, can he actually hold on during his mandate and the analysis is that on top of his team and his political line, his character is in question these days, over the past few months it seems like everything has changed around him except for his job. >> here in france -- bring us some more optimistic news. >> you have the belgian singer -- he is on the front page, he is always a little bit more optimistic. he is going on tour in africa. he actually talked about his africa because

the euro fell yesterday.n against the dollar for second day, albeit for a small amount. 1.38 34. one guest i had on earlier said there will at least be a rate cut from the ecb next month. what else? continue next.e anna is back next with "the pulse. " see you on monday. have a good weekend. ♪ . . >> megamerger meltdown. publicis and omnicom scrap their $35 billion deal to create the world's largest advertising company. apple makes a play for dr. dre. the tech giant is close to buying beats electronics in its biggest ever purchase. putin flexes his muscles. tanks rumble across red square for victory day as europe readies new sanctions. welcome to "the pulse." i am anna edwards.

we're pretty much dead flat across the euro-zone. in europe, it is growth day or if you're france, no growth day. zero percent from them. .8% from germany. what a divergeance? it continues. you have germany and everybody else. the euro jumped around a lit. at 1.3714. forget growth really. you get that headline number at 10:00 today. that is not a deal maker or deal breaker. when you get that rating on june 3, the big one, the e.c.b. meeting and what they might do. what it is really loobt is the outlook for inflation. nothing really changes today. it is e.c.b. forecast on june 5 that will drive what happens outside the euro-zone. >> let's pick up some of the themes now with the head of global client group at deutsche assets and wealth management. great to have you with us this morning. g.d.p., everybody says is slightly retrospective. the key thing is what the european central bank does next or potentially does next for us. what do you think they do? >> well, i think we have had a little bit of a surprise last week with mario draghi a

fo billion euros. they have confirmed the full-year forecast and they are scaling back ambitions in content in media and focusing instead on network investments to internet and phone customers in europe. the t-mobile u.s. unit adding more subscribers than both at&t and verizon communications combined in the first quarter. sprint, the big japanese company controlled by softbank division calling forward to push for a bid for t-mobile after meeting with banks to secure financing. that's according to people with knowledge of the situation. that's the big elephant in the room. the earnings in the room tell us that earnings are just narrowly missing estimates for the first quarter. like strategy day for barclays. pressure has been mounting for targets over job cuts, and what the business was to focus on. manus cranny joins us now. you've been following this for a long time. focus will be on the jobs story. >> whether jenkins in his second review, been there nearly two years, but it is just aggressive or subs

the euro putting down the price of that. since late 2011, it has been down to falling commodity prices. conventional talks, we are talking about rate cuts. >> what about the nonconventional tools? >> he talked about common factors, the strength of the euro. he also talked about local factors. when he talked about local factors, he was talking about credit and the availability of credit in some of these enterprises not in germany, but the likes of portugal and spain. these acts are striking. the percentage varies from 1% in germany to 25% in spain and one are financially constrained in portugal. that is huge. how do they get credit to these companies? fear over the next year is that when demand for credit picks up in these countries and the recovery accelerates, as banks raise capital and clean up their balance sheet, they will not be able to meet the demand with supply or credit. how do you do that? that is the big debate. >> also a big debate about whether or not it is the agreement of the ecb to be doing this or whether it

euro stoxx 50 also barely moving, finishing the thursday session at 30 to 44. the euro a tad higher against the greenback, trading at a value of $1.3 602. >> argentina has reached an agreement to repay outstanding loans that read -- that date back to its debt default in 2001. when srs still owes nearly 7 billion euros -- buenos aires. >> argentina will make a first payment of just under 500 million euros this summer with annual payments following that. argentina hopes the move will help it reentering world financial markets. this time, every year, a german city presents the charlemagne prize. >> this year, it was awarded to the european council president. ukraine's prime minister spoke to thank him for his support. moving onto sports now, tennis superstar rafael nadal has moved a step closer to defend a case french open title. >> the a's-time champion cruised to victory against a young gun from austria -- the eight-time champion cruised to victory. germany's andrea petrovich also advanced after hanging on to beat the swiss player in three sets. it's just two we

it is russia. 525 million euro write-down.berg is shrugging it off now but that stock is lower on the year. the numbers not impressive today. they miss here. the man's in russia will drop by mid--single digits. missed in that was unexpected. 1% day.y up by profit of over 5%. the market lights it -- likes it and there is a bright one. siemens these are the -- >> these are the bloomberg top headlines. to u.s. is urging ukraine push on with the presidential elections. secretary of state john kerry threaten further sanctions against russia if he continues to sabotage the democratic process in ukraine. south africa's african national congress is set to take the majority in today on selection. rivalsing party faced 28 for just 400 seats in the legislature. recent polls predict the anc to take 63% followed by the democratic alliance with 22%. the u.s. is pressing for guilty pleas for the parent company of bank's investigation, including credit suisse. there try to settle a tax evasion probe equity include a penalty of over $1 billion

help on theates may euro-dollar side.r economies in europe, to have a slightly weaker euro. especially for medium sizes. >> the united states says ukrainian separatists are getting outside assistance in the form of advanced weapons. there's been an upsurge in on hundred 60 kilometers from the russian border. we'll get the latest trend in the economy in india. groups -- capital asokh shah joins us. has the economy bottomed? >> i think we are in the process of bottoming out. the consensus expectations are about 4.6% on an annual basis. we are waiting for the reform programs. in terms of the reform program, the priority is to unblock all in her structure projects that have been put on hold. that is the way you improve the productivity game. we know there is an acute shortage of electricity, but there is -- there are infrastructure programs across could allvery >> how that potential spending the block? due to landen stuck acquisition issues or environmental issues. i read this morning that these are things that are under the

f there is a crisis in the euro-zone, it is the record high for euro-zone unemployment. >> the starsce including francine lacqua. she got the inside scoop from the c.t.o. on the latest trends in luxury. >> people -- you have to be more selective on what they buy. they like to maybe by pieces. they like to buy quality. they like to hear beautiful stories and i think -- >> francine lacqua will be bringing you more from that conversation in this weekend's 30 minute bloomberg special on the luxury fashion company, "inside fendi" on bloomberg this weekend. tune in at 6:30 saturday and sunday. >> we have a look at what it makes to make it on to the prestigious list over the 50 best restaurants. >> coming up after a short break, how does r.b.s.'s road to recovery compare to that of the other bailed out british bank? we'll have more on that. ♪ berkshire hathaways has altalink. uy the purchase price will be $2.2 illion u.s. dollars. inked in, the biggest online network, has faced 16 quarters of decrediting growth. -- decelerating growth. sony posted a preliminary net loss of $1.3 billion. the

euros-dollar. $1.40, watches them scream.ghi and for mario the ecb is that the market begins to lock and load. or is the market already so long and so very long that it is overbought? see themaybe when you ecb stepped into action. by the way, i quite like the shirt despite the twitter debate . >> i do not know what you are talking about. >> a special french skier captured the perfect birds eye view of the swiss out. -- swiss alps. >> landing successfully. with the help of a wing suit and a parachute. $236 million, that is how much kristi's collected from a recent auction of impressionist and modern art in new york. >> that would be my heart rate if i was jumping off that he'll. -- jumping off that hill. ♪ >> welcome back. live from bloomberg's european headquarters in london. the u.s. is urging ukraine to proceed with its may 25 presidential election and reject russia's calls to postpone the vote. john kerry threatened further sanctions against russia if it continues to sabotage the democratic process. >> the u.s. is pressing

euro shares will also be on sale sometime next month. will the deals be snapped up? here is caroline hyde our european business correspondent. offer for us? >> 25% of all the shares that are currently held by lloyd's. 1.5 billionmate of pounds value of tsp, shares are going to go on sale as soon as next month. lloyd's offloads its unit that has four .5 million customers, 631 branches across the u.k., making it england's seventh against lender. they had to get rid of this unit. this is the way they're going so far. clearly, they want to get ahead of any sort of summer lows. >> the market is taking it quite well. nex. o me about euro quarks nor exact timing, but we do know there will be a share sale third it will be a private lace meant to some big investors. they will get their hands on the shares first, then it is up for the public, not only institutional but also retail will be able to buy into this. this is all about a bet on ronext. they are now spinning it off. it is all about betting that this is a company that can lift new shares and trade shares, but also trad

so you can see the intraday move here on the euro. why would he be so upset about the euro? it really hurts a recovering economy if your currency is very strong. >> because you can't export. >> you can't export. >> you lose whatever currency you get. >> now you're spain, you're italy, you're greece, you have done massive budget cuts. you've cut salaries, pensions, done all these things to make your economy more competitive. finally for the first time in years, your exports are rising. and then bam, you get a 10% move in your currency. >> in your currency. >> in less than a year. >> yes, yes, yes. >> and suddenly all that could disappear after all that hard work. that's why he's working so hard for now at least jawbone down the currency. >> i've listened for years and i know you have, too, to american treasury secretaries administrations, a strong dollar is in the great interest of the united states. >> mm-hmm. >> not always. >> no. >> not always. >> and exporters in the united states would say never. you know, they like a weak currency because it makes it easier to sell stuf

votes on the final day of the european parliamentary election with exit polls showing huge gains for euro skeptic parties across the continent. as well add lines also of course ukraine's candy king declares himself winner of the presidential race after exit polls. we're talking there about the italian journalists that have been killed in ukraine we've got an update on the pictures slightly at the sink you know what we're talking about and that's the two russian journalists that have been released as well we've got their story as well from life news of course released on the. ship with them a little bit later. to go back to what i was saying the parliament voters in twenty one e.u. nations cast their votes on the final day of the european parliamentary election exit polls showing huge gains for euro skeptic and far right parties. among this week's other top stories russia and china strike a landmark gas deal worth four hundred billion dollars it's moscow's largest energy contract in decades as it turns its business priorities eastward. hello this is art international first than ukraine's c

the markets in particular, euro/dollar under slight pressure.range right now, a number analysts asking whether or not all the good news as far as the stimulus is in the pricing of the euro/dollar and whether we could see a bounce at the end of mario's draghi's announcement or will he not add further stimulus. let's complete the circle now. u.s., europe and asia, sri standing by in singapore to give us the latest. sri? >> hello, julia. the markets over here liked that fresh record close in the s&p 500 and the market state side of course liked the robust economic numbers. so there's some risk appetite out here. but runaway gains by no stretch of the imagination if you take a look at the quantum of the acceleration on the asian markets here. i will say this, though. shanghai composite was adding gains today. it's really down to expectations of further stimulus. the industrial profitability numbers weren't bad, 9.6% expansion compared to the 10% plus rates we saw in march. some stabilization. nevertheless, the market still wants to see some stimulus

this vending machine would be a new solution for them. >> each machine costs 65,000 euros.ust like any other vending machine, you put in a coin, and inside an oven finishes baking a half cooked baguette. >> the robot takes the baguette from the start and voilÀ. >> fresh bread in just a few minutes. he has taken the business to the annual consumer products fare in the french capital. crested.nice and great to have fresh bread in the morning. >> i think it is interesting. bring goodll help to quality bread to places where there are no bakeries. >> some of these machines have already been installed in eastern france, paris, and russia, proving there is nothing half-baked about this invention. >> another look at the headlines this hour, pro-russian separatists in eastern ukraine have claimed a landslide victory in sunday's road for more is -- more autonomy. they are denying accusations of voter fraud that kiev and the west have called illegitimate. voting in the last day of its massive six-week election. hindu nationalist opposition leader is seen as the front-runner, but the f

stupid paid up to four thousand euro for tuition i don't mind it took the gun to school. when ross and wind up not have nobody as she meant not as an undead pretended to be all or was he is have a lot of plans and dreams and it's gonna happen now. the team teachers working here returned to her tonight and tom's work on. we have five weeks and counting outstanding and treat patients with no pay. i just didn't sound too are the money's gone for students the fried egg on her toast and coffee tuesday. she has accommodation elsewhere traditionally cautious happened to the situation and go and buy bonds has been put in place before and i'm fairly sure that this would be the same situation. in other schools will take the students. i hope another spoon onto a scene from the same premises with the flu last week over allegations that the integrity of the corporation. the research education and immigration service said it's very concerned that the composer of the two screws in the snow with me to get tickets due to increasing prices. tt's the plan. the former heir to a prison has cl

they lost russian business at over half a billion euros.e for them but if they have to do this for the first quarter, what does it mean for russia going forward? >> we have figures from carlsberg. the biggest russian brewer. we will have more of that shortly. david is in headquarters in berlin. of newse a lot coming out of siemens.

how do you play out the euro?hat mario draghi needs is for the euro to become weaker. >> i think european peripheral assets look pretty attractive. we are overweight italy and spain. , andrticular, slovenia looking for good opportunities across the board including banks and credit. what you want to do is have positions you think will work well in quantitative easing. there is potential for it to work better if the ecb does start to buy assets in large size over the next six months. >> those dynamics aren't exactly improving in the eurozone. do you not worry about that? >> there is a lot of debt. what does this mean? it means that the ecb is keeping rates at a low level for a very long time. qereinforces the idea that can be helpful here in terms of the stability of the eurozone in addition to inflation. if they can have something like nextminal growth over the three to five years, it is not terribly exciting. i think that can lead to stability and some very slow deleveraging in the eurozone. i think there is going

glen ford why the euro skeptics are in vogue in the u.k. and europe right now. part of the problem is that they don't want to be your big goal it's a very it's a very nasty your for many people in terms of encouraging cuts in public expenditure and the rest so some of the different somewhat no europe and sun just wouldn't keep the political class what underlying these much of the xenophobia much of the support for populist part is is that people are suffering and we need to make sure that we end austerity europe and start getting if you don't start putting money into the economy to actually create jobs growth and earth. a future that looks more hopeful moment we have at the moment. now a deadly trends growing among russian units train surfing on top of speeding car ages but what starts as risky funland some of them in hospital or worse this fourteen year old suffered an electric shock while riding on top of a train he lost consciousness and his friends took him to hospital with appalling injuries another train surfer in moscow was even less

reporting net profit of 161 million euros. that's well above expectations and the bank re-affirming its commitment to russia, despite the current crisis. it said it had raised ukraine provisions by around 65 million euros in the first quarter. sab miller, the brewer, up 3.5% in london trade. the latest corporate to bemoan head winds. they forecast another year of tough trading conditions. one stock that is to the down side, the royal mail, down over 5% in london as well. not delivering for investors despite posting a 2% rise in revenue. postal firm warning of head winds, including the competitive environment on the positive side of the business in particular. that does account for around 51% of group revenues. show you where we stand with bond yields today. gilt yields higher, 2.65%. italian yields, we've seen this sharp move up. peripheral spreads, italian yields around 2.9% a couple weeks ago. currently 3.17. treasury yields are what we've been looking at. this time last week we hit a six-month low of 2.47% on the ten-year y

their parents had paid 2000 euros to smugglers.hey wanted their children to have a better future, even if it meant sending them away. >> we had a lot of problems in egypt -- big problems. here, it is quiet. we do not have to be afraid anymore. >> the initiative could not get shoes for them yet, but they were provided with lodging in one of the renovated houses, some pocket money, and for the first time in a long time, it's of their own. he now works for the initiative as a cook and interpreter. that was the only opportunity for him to earn money before he was officially recognized as a refugee. today, he also looks after the underage refugees who wound up in his newfound home. >> we could hear every day for the underage refugees. they have a place to eat together upstairs. >> he has come up with a lot of, including using colorful fake currents he -- currency. >> they can use this money to buy whatever they need -- clothing, soap, phone cards, cigarettes, household items, whatever. it's all paid for by our initiative. >> volunteers

walker looking to adopt the euro zone group that everything is good enough. longtime infrastructure and efficient operation was awesome and i were to line up of the nineties on to the predator from place to start the concert from crossing those goals or more and more. in two thousand and nine the tunnel became profitable. and whilst your day is approaching one hundred meeting in your eyes what a joy to the upturned started the two thousand twelve olympic games when passenger numbers jumped off a ten percent. that's what our customers out of season training. signs of the tunnel i still said this has been presenting success and customers save in all police inquiries about the mechanics of the trip. you need it the reasons indicated the leaking of a business entity of friends i'm thinking ict. the spoon. it's just very relaxing with traveling. statistic in the euro tunnel so around three hundred and thirty meeting in person just across the channel. the senate a kick returns has an image of the series compact to the ferry and mailing services between france and p

the euro has been a big part of that. these are common factors across the euros are. zone. this would require adjustment of conventional rate cuts. we caught up with the ceo and he shares that view. >> the most likely would be interest rates and negative deposit on the ecb. what could be important is to work with and attention to be euro valuation. banking ina big europe. the rate cut is the minimum people expect next week. >> there was a variety of opinion and what is conventional tools he might use. are we any further in terms of understanding of what might be delivered? >> yet to look beyond the common factors because when he talked about local factors, the big clue was in credit. and some ofraints these countries across the eurozone. the percentage of viable constrained smes. these are smaller and medium-sized enterprises with the possible turnout for the last six months that are unable to seek a bank loan. a minimum of 1% in germany to 25% in spain. as much as it third of smes and in portugal are financially constrained. they lead to lower inflation. the credit market