jonathan ferro joins us for more details. is a deputy governor with responsibility for markets and banking. is the executive director for markets. this is almost upgrading his current position, calling it a deputy governor. female on the mpc. she will join in august to replace paul fisher. this officially means july has a seat taken. nematt do we know about shafik? >> she's very experienced. to some extent she will help tackle the gender issue. let's be honest, this is a very political thing as well. finally they're pretty female in a big job at mpc. it has been a long time coming. england is now quite silo and parody of this section doing this. in this section doing this but. there is not a lot of cross fertilization. i have heard one description that it started to look like a real bank, and investment bank with things of are integrated. you also have these four heads that report to one man at the top and things get more streamlined. so much.thank you jonathan ferro with the latest appointments at boe. >> we will discuss the

let's stay on the ukraine and go to jonathan ferro.ou're watching the market reaction to the latest. >> or, the lack thereof. it is muted. crimea went the way we expected it would. two elements remain now and will russia annexed the region? retaliate?e eu russian equities might be a touch higher. 70%.e year, they are down for the500 is down first three months of the year and political risk has been a key feature on the move in the last month. stocks --just russian it is not just russian stocks. >> the russian currency is down to get it whole range of currencies and those moves will hurt european companies. any european company with a large slice of revenue will get less and less. how this escalates remains to be seen. sanction talks are not focused on energy. there is a $160 billion reason for that. that is how many crude exports come out of russia. has a fragile recovery and the last thing they need is an energy crisis and a spike in energy costs. here in europe, they sit down and talk about sanctions. >> jonathan ferro is here with t

jonathan ferro joins us with the details. if you look over the last month, we have had a pretty big saddle on the european equities. we have a big break height by the russian central bank. this is about politics versus economic reality. you have a company that accounts for gdp and it is driving markets for one region, it is about political spillover and escalation risk. russia exports $160 billion worth of gas and crude oil to the european union and the united states. we have no idea what the sanctions will actually look like. it seems like the european union foreign ministers don't either. the ruble is one to watch out for. >> i think it is. european leaders care about sfxs, energy costs, and fluctuations. the ruble is at record lows. any company that has significant revenue coming from that region, they will get a smaller and smaller slice of that when they converted it to their domestic currency and that will hurt european companies. thank you so much. jonathan ferro with the market impact of the crimea referendum. >> it h

let's get to jonathan ferro with the details. market reaction that we have seen to this seeming escalation. >> i will break it down very simply. we will look at russian equities and currency. down about 2.9% right now. russia stock has been hit quite hard year to date area down around 14.5%. some talk about that being the ultimate sanction. dollar/ruble, dead flat. if anything, the ruble is up against the dollar by 0.1%. there has been a lot of talk about russian companies repatriating funds from abroad. not much evidence. very speculative. if you were a russian company, is it safe to bring it back to russia? that is something you have to think about. >> we have some interesting ratings agency moves. fitch put russia on negative outlook. they reaffirmed their rating on the u.s. and removed it from the watchlist. they are suggesting that russia has more to lose here than the u.s. does. >> at least in their analysis. i thought what was really interesting wasn't so much what they thought about credit ratings. not many investors are

jonathan ferro has the latest.are always excited when a big name that everybody knows comes on the market. $7 billion and it is all down to one game. >> we should probably call it the "candy crush" ipo. i will tell you what this company is, terrifically popular. everybody plays it. three quarters comes from one game. apps out of the 10 top come from this company. 1.4 billion daily game plays. the problem, is it a fad? does current popularity translate to a business model that has any kind of longevity? we saw what happened to zynga after their ipo. you also have to think about this. there are significantly lower barriers to entry to enter this market. you can make a game for about $150,000. that is quite low. that means another game could come in to the market and push them off their perch. >> it is different in terms of valuations. how do valuations compared to the dotcom era? sales.times projected that is not a terrifically-large valuation. i do not think it has mattered. everybody would be talking about whether

jonathan ferro joins us. >> eight minutes until the market opens in london.ry really in focus and it is not russia or the ukraine, it is china. a flurry of downgrades for 2014 gdp by whole host of banks. america lower their estimate from seven point six to 7.2%.- from 7.6% there is significant exposure to emerging markets, copper as well from a july 10 low. no data out of china for another week. thet certainly has been topic of the week, hasn't jon? it has been left unknown who's going to be taking over at nokia. they are disposing of the phones unit. , surprise, it is the ceo of the network who is taking over. he's been at the helm of the network area since 2009. stock is coming in at one percent higher. of thejust because numbers, but because of their ambitions. they are more into mobile. the big mobile player in france, the second-biggest in the whole country. altice today put out numbers. it is over will -- it is the overall owner of numericable. it did make some rather bullish comments about the firepower it has because they came to market and the should

jonathan ferro is here on that story. microsoft wants to give you access to office software on any device, starting with an ipad. has the details. i need both. what is facebook buying? >> facebook is buying a $20 million drone maker here in the u.k. it is tiny. it has five employees. longrones they make are endurance drones. it is something that hangs in the air for up to two months. you send this out to a geographic location. somewhere with very poor infrastructure. no access to the internet. this drone can provide internet access. what is the potential? there is a question mark there. >> there is sunshine above the clouds, i have been told. we are starting to see a whole series of acquisitions being made here and you are creating a universe. they look at mark zuckerberg becoming the next stage of omaha. creating a loose constellation of businesses. could this fit into that? >> you can try to make sense of it to a certain extent. whatsapp and instagram beefed-up their mobile offering. this acquisition increases business.

. ♪ >> jonathan ferro has more. this is a huge market.na is market where trying to be more transparent. >> you hit the nail on the head. you have a market that art they're trying to dominate. that is absolutely massive. minerals are elements for everything we need to make. the problem here is -- has always been price transparency within china. with china are doing is bringing these rare earth elements to an exchange in a similar you can buy copper over the metals exchange. they're trying to increase transparency to bring some free market discipline to the market and hope put -- and hopefully deflect criticism. >> you are also getting trade disputes between u.s. and china. >> yes. whenever you have a country that produces an element him a commodity and dominates it, they're going to get attention. to dispute was between the likes of the eu and the u.s.. they are essentially saying look, you're limiting our accent -- our access to these elements. china says they're having a problem with pollution and the need to conserve supply these elemen

let's get straight over to jonathan ferro for the fx check.he u see the kiwi dollar, new zealand dollar up .5%. despite the trade surplus, the finance minister in new zealand said this one is too strong for the nation's exporters. they want it lower. mark barton, this one is the best performing major currency this year. >> thanks, jon. these are the bloomberg top headlines today. president obama says the u.s. and its european allies stand united against russian attempted o redraw ukraine boundaries. wasia is challenging the ideals of democracy, free market and international laws. stocks fell after his remarks. the bank of america has agreed to pay $9.3 billion to resolve a dispute over mortgage securities. the federal housing finance agency sued 18 banks over their sales of mortgage products. they allege they falsely represented the loans behind the security. singapore and switzerland, as the investigation into the alleged rigging of currency markets widens. u.b.s. opened a review last year. this after bloomberg news reported in june that trad

we have jonathan ferro onset. talk about what happened at the fed yesterday. what jolene -- janet yellen said , how it has been interpreted by markets. >> relatively hawkish. everyone was talking about forward guidance. it turned out to be a lot of noise. they kicked the sick .5% threshold -- 6.5% threshold in the bin. this was about right expectations. looking at grade expectations, this was in the summary of economic projections. all about the dots. familiar,who is not tell us what are these dots? >> it is in the summary of economic projections. the federal reserve puts out its forecast for things like gdp, unemployment, but also for rates. they do it through dots. for one official, where they think rates will be. we know now that the median rate 2.25% inis 1% in 2015, 2016. this is up from december's forecast of 0.75% and one point 75%. -- 1.75%. there was a slight forecast -- change in the forecast for gdp. >> how do you explain it? >> she tried to talk it down. the market is not buying it. there is no forward guidance anymore. they went straight to those

future.et this is the thank you, jonathan ferro, with the latest on the bafta giving awards.or more new words, the chair of the games committee. reagan have you on the program, harvey. give us the scope. $93 billion for the gaming industry. this seems incredible. how much will it increase because of mobile? we are always on our devices. this means you could potentially all day everywhere. >> that is the key. mobile phones are amazing these days and performance has grown so much. we're finding people are playing 24/7 -- >> that is scary. >>, it happens. there are games that capture people in such a way you have no choice but to put more time into it. >> what makes a successful game? can you spot one before it comes out? i love seeing films. can i spot the one that will win a bafta? not always. >> not on my own, but i can find -- spot games that resonate with me. games that make me want to put more more time into it. it captures my imagination in a way that it has never before. once you win, does it translate into sales or more of an industry recognition? >> both. it helps sale

jonathan ferro has the details., the index moving higher in the early hours of trade. >> that is not going to change anything because we knew which way the vote was going to go. are down around 17% for the first three months of this year. together with china, this geopolitical risk has erased all of the gains for this year. we know now this is not just about ukraine. this is a country that accounts for 0.4% of global gdp. this is about political escalation and how this goes out across the region, even involving the u.s. and what is means for sanctions going or where. thatnry was just raising the juxtaposition of the theiric concerns against geopolitical concerns, you wonder how that plays out. how is this laying out in the currency market? >> the ruble is pretty flat right now. it has been on the back foot. it is trading at record lows against a host of currencies. if you are a european company or any foreign company and you have a lot of revenue coming out of russia and the reuben -- and the ruble is on the back fo

here is jonathan ferro.k,get a default this it will not be a big surprise. >> is the tip of the iceberg. if you look at the energy, this is what people are talking about of it is an interest payment $14.6 million. it may not be a big deal. in the grand scheme of things, when you have a record in that it will be interesting to see how far it spreads. >> we were talking about finessing this and he wants to finesse it. he has been good at managing these situations. is dabbling with capitalism not an easy thing. they tried it and it was a bigger deal. you cannot experiment when it is such big numbers. .> the market cannot get away you can see significant capital and if you want to talk about china, we need to give them the benefit of the doubt over control. it is a big step. >> it is almost like a warning signal. have as will stop >> you lot of pressure out of the system and we will manage them and show you that we are in control of the situation. >> you try to bring discipline to the market. you the growth figu

here with me now is menace cranny, jonathan ferro, and caroline hyde.share lloyds bank stake -- stake sale. >> the second time they have sold stock. just under 25%. has been onor twitter saying they are going to use the proceeds to pay off the national debt. they will have to do it at a discount and a bigger discount than the first time. 75.5 pence. >> we will keep on top of that. jon, you are watching the maker of "candy crushed". "candy -- let's just call it the "candy crush" ipo. 75% of their business. >> i spoke to alex friedman earlier on. everyone around here is saying, why am i not working in tech? facebook is buying something se

. >> thank you so much, jonathan ferro. also on our radar, shanghai.ompany to default in china. they're trying to repay the debt. telecom has scrapped its dividend for the first time in the history of the public company. it is trying to conserve cash. the net loss was 674 million euros. the government must push for more black ownership of businesses. the south african government. >> we have made a dent. it is not enough. ♪ romeo crosses the line. it's pro-russia parliament. ♪ >> welcome back. you are watching "the pulse." we are live from london. mario draghi spoke yesterday in frankfurt. the euro is continuing to drain -- gain traction against the u.s. dollar. euro beingbout the an island of calm yesterday. that will be severely tested. the inflationof numbers are at a pretty low level. that will provide a problem moving forward from here. once we start to see the tension in the ukrainian situation come off a little bit, will we see money going out of the euro? a number of different things are going on. the numbers are getting pretty tight. mario drag

. >> jonathan ferro is looking at the ecb rate decision later. >> caroline hyde is looking at the bids. aviv.tt is in tel >> let's start by telling you about some of the big news coming up on bloomberg television this morning. we will turn our attention to jcdecaux. of we will get more insight into the company's latest earnings. and a security maker expects double-digit growth in profits this year. and the pulse will sit down with discussf executive to europe's second-biggest maker. are holding an emergency summit to decide how they should respond to the russian troop buildup in crimea. there.weed is they said they were making some decisions last night with regards to isolating russia. talk about how that builds pressure on the eu to act next. the mere fact that nato has decided that the situation in russia is so critical that they have taken actions will be putting pressure on the european leaders to take action in brussels at their meeting later today. certainly in terms of some sort of sanctions or enunciating what they plan to do. listen to what the secretary general of nato had to

jonathan ferro with the latest look at the markets and these commodities.joining me now is charles siegel, the head of market strategy at lloyds bank. give us a sense of how optimistic you are about valuation's and how optimistic you are about growth in general. where do you see the most might be made? the key aspect is the investment world coming into this year with bullish expectations and how this year is a different year from the years that we have had because of the weather affects and events in the ukraine and thailand. there have been a suppressing effect on growth and this is hard to distinguish at this point in time. whether there will be a rebound when the weather improves or whether in fact we are dealing with a continuation of the previous years, where growth is more fragile. that is what i am in. it is an inventory buildup that you had in the second half of last year and that is partially responsible for the weekend data. it is not of the world is going into a big recession or .ataclysm we are in a slow growth story. >> the valuation and the st

jonathan ferro has more on the emerging market reaction. yesterday was a bit of a bounce. today? >> let's call yesterday monday and reverse. seeing stronger markets in asia and with all money going into the swiss franc and the japanese yen, a bit of a turnaround. dollar-yen high if you ever nikkei,to trade the it is up 1.5%. escalation has diminished somewhat. markets rarely have 2020 vision but people can get a little blasÉ. is 175ual gdp of ukraine billion dollars, four days of gdp and the u.s. and the entire stock capitalization is about the size of the disney company. this was never about ukraine. it was about spillover effect and what happens with russia and the eu. can you say that putin really stepped back yesterday? language and he did seem to step back somewhat. investors have jumped on it and they are almost back to where they were monday morning. >> you're describing it as a move back from the brink of war to a war of woods. >> the fact of the matter is you are dealing with political risk which is always a little bit tense. when you're dealing with politicians, you nev

jonathan ferro is that the touchscreen. >> euro-dollar is dead flat on the day.ion time is in a little under two hours. see no change at all. inflation did take a little bit higher. there will be plenty of questions for mario draghi. >> a look on what you need to watch for the rest of the trading day. we are joined by weight -- david tweed. the emergency meeting starting right now and brussels. -- in brussels >>. the key is whether we will see sanctions put in place or not. we probably will not see sanctions. the preferred avenue is to goad on the diplomatic route, but what happens if russia escalates its activity in the ukraine or will not be escalate the a cavity in the crimea? that is what european leaders will have to be clear about what they propose to do should the whole crisis escalate. one other point to what is going to happen here today -- european leaders providing financial support for ukraine and really endorsing the government there. there will be a news conference coming up with the president in about an hour. this whole meeting is supposed to wrap

jonathan ferro joins us now for more. you have been looking at this deal.usiness. five members of the team. my producer said it is so small i can't even find a website for this company. they paid $20 million for it. what do they do? effectively, these drones can hang in the air for long periods of time, say two months, and remote geographic locations. this is the key point. if you are in a remote job if he and you don't have a fixed line infrastructure, it is very difficult to get access to the internet. this is something that mark zuckerberg wants to change. if you can get internet access to these remote locations, then potentially it offers him more users. >> it isn't just facebook, isn't google also talking about tying to spread internet access? some of these big names in the technology industry are taking it upon themselves to bring more people onto the web. can we make sense of facebook's spending spree? >> let me give it a go. they bought whatsapp for $19 billion. and they bought instagram back in 2012 for about $750 million. last0 acquisitions in the

here are caroline hyde and jonathan ferro. off with the futures. a little disappointing today.sn't exactly doing what we expected today. gone away.as not it is just a matter of time before plays back in the markets. >> it depends on how the markets react. you're watching the latest from president putin. president putin has artie supported a bill to approve the accession of crimea to the russian federation. the really important thing to watch out for today am a francine, is the speech by vladimir putin in moscow and at 3:00 p.m. london. 11:00 in london. >> that will be a speech to watch for. everve of course the first press conference by the new head of the federal reserve. >> nine straight years, that is 30 six quarters

much.nk you very jonathan ferro with the latest on the central bank.e are also getting some live pictures or sound from the ukraine prime minister. he is attending a cabinet ministers meeting. we will be on top of that and bring you anything out of that briefing he is having with the government. george osborne is set to unveil the u.k. budget later today. guy johnson is in westminster. >> lots of politics today. not a lot of economics. this is a big political set piece that is all about the narrative running into the 2015 general election here in the united kingdom. the chancellor will be able to deliver some good news. the british economy is pretty much back to where it was in 2008. unemployment is falling. we will get the data at 9:30. and inflation is ready much in check. that is good news. for the first time in a number of years, we will see wages rising faster than inflation. everything is pretty much on track. politics, we have a general election coming up. george osborne is a tactician. he will want to position his party for the run at that elec

just ask jonathan ferro. >> can i get a full english and a black coffee? that is all.flation in the u.k. and europe pretty low, what does that mean for you and i? breakfast time. the pr isice of food has gone way up. this is breakfast. allow me to present to you the full english i'm a saturated fat, carbs, and caffeine. bacon. pork prices are pushing higher in the u.s. we've got a drought in the u.s., southeast asia, india, and even australia, putting wheat prices under pressure. as then you've got coffee. people call it an early morning drink. i call it a necessity. it is all about one place, lieterally. brazil is literally the world's biggest producer of the stuff and there is a drought in the country. the next time they tell you inflation is low, it is not for the humble british breakfast. breakfast in britain to chocolate in china. explainng why a luxury chocolatier is so much. >> in the u.s. and europe, we are very well established and we are experiencing growth. however in asia, our growth is much more robust. that is driven by the dynamics of the economies in as

jonathan ferro has more. >> i did not know. and you aredeal finding games after work. it gets our attention. it will pass 100 billion this year. and united kingdom and united states, this industry is bigger and it is right that there recognize. auto sold 800 million worth of games. they did not touch the size. in terms of this industry, it is on a decline in some areas. >> what about the mobile game >> games haveark come into play and they are highly aggressive and cheap to make and five. andalked about the word they're not a big fan of it. you see them coming in with the aps -- the ipo. it is a valuation that is up. i have seen some good stuff about this. is that justified? a lot of people will talk about it and this is forcing traditional game makers to rethink their whole business model. there is so much -- so many questions. >> that you so much. 93 billion. >> unbelievable. >> a huge industry. you cannot ignore it. >> i have sons. it will be coming soon. stay with on the move. the final thoughts are next. >> welcome back. let's check in with administrative. it is a

. >> jonathan ferro is on the market reaction. ryan, let's kick it off with you. russian lawmakers are in the final stages of pushing ahead with annexing crimea. >> that is exactly right. i've been looking at some of the sanctions which target individuals. going through some of the personalities affected by the e eu and u.s. list. starting with the billionaire brothers are tidy -- arkady. his companies alone were worth about sixere rewarded billion dollars worth of contracts as part of the sochi games. he and his brother on the sanction list that the u.s. came out with before the eu came out with its list, also have interests in a bank called smp bank. this personal sanctions at point are affecting, perhaps in a small way, the russian financial system at large. another name i would mention is the largest shareholder in a bank whose name means russia. this is a st. petersburg-based bank, the 17th largest in the country. yuri kovalchuk is on the list and so is the bank. it is the first time the united states has sanctioned a financial entity. rossiya has come out wi

let's look at how the markets are reacting and get to jonathan ferro. >> the sentiment is the same as yesterday. the escalation risk has diminished in the eyes of investors. the perception is what drives it right now. here are the visuals. you saw the european equities and the losses for monday and the softness in europe. it is nothing like earlier in the week. >> are investors of more comfortable with the situation as it stands right now? >> yes. it is not about what happens in the ukraine. gdp isphrase, the annual 175 .5 billion. the stock market capitalization of the equity market is about the size of walt disney. get lazy abouto this and it is not a mickey mouse issue. the fact of the matter is that the situation is intense and you are one headline away from a market reaction and a political risk. we have politicians on both sides of the fence and it is more the sanctions that they are throwing around in the coming weeks. >> thank you so much. that is the very latest and the views on the ukraine and central asia. assets atf central ubs bank. thank you for joining us. tell me about

tofor a recap, let's talk jonathan ferro. talk to me about the nuclear option. >> i have not got the note in front of me. it involves a big cut in the finance rate and quantity easing ending. >> that would be using a lot of the expectations are what some say they are good at. >> we will leave it there. is by herself. stay with bloomberg forever thing on the train crisis. >> talks on russia and the eu leader tells him to pull back. mario draghi has his latest data. a bidding war for 10 billion euros with vivendi. a rival proposal. welcome to the polls from oo

here with me is jonathan ferro and manus cranny. david inglis is standing by. towards a higher start. >> in a less couple of minutes , we have a bit of rebound after week chinese data. in a are sizable moves last couple of days and a rebounding copper today. >> watch for copper and commodity producers. we will get them up for you when they open. let's go to westminster. are indeed outside of the houses of parliament with mark carney and the head of markets. when didyou know and your institution know what? another unregulated exchange. mark carney has explaining to do and what did the oversight people now at the bank of england. ?hy was it not escalated back to you. kongt's go to hong

we have jonathan ferro onset. talk about what happened at the

. >> here in london it is jonathan ferro day. he joins us with a preview of jobs figures. >> i am not the only analyst who gets excited about these numbers, in particular not in london, but i am going to get the numbers out of the way. the market is going to be looking for 149,000. this is crucial because this could bring the three-month average down to 112,000. last year the average payroll growth was 194 k, just around the magic 200,000 number, the very number a lot of people use to taper. if in doubt, blame the weather. it looks like a intend to do that with mentions of the weather in triple figures. one question in my mind is would they have begun to rein in stimulus of these were the job markets in the final three months of last year. been a massive call. >> how high is the bar at the monetaryconsider policy? >> pretty high. they are talking up the change for them to even reconsider with a clear reference as to whether they will change their outlook. the fed president of philadelphia. listen to the recent comments from the s

jonathan ferro joins us with the details of the selloff in russia, while caroline hyde takes a closer look at what is happening to european companies and markets. >> russian equities down eight 8.5%.lf percent -- that was for one reason and one reason only, russia's central bank comes out and hikes to seven percent from 5.5%. they say the reason is to prevent inflation risks and ensure financial stability. it does not remove political risk. that is what is driving these markets. look in commodity markets, that is where you get the broader story. natural gas is up two percent this morning. his been up there since most of the morning. this is critical, not just for russia and ukraine, but for the eu as well. they get a third of their gas imports from russia. that takes away some of the leverage they have in their negotiations. what happens to the likes of europe if they try to have the same sank and you have on iran. that is going to hurt europe. >> some say the explosion is there. if you are a chemical company china keep your lights on -- >> you have the possibility of trade sanctions.

jonathan ferro has the report card. >> i will start with the big one. the fed says no.o to citigroup plans to buy back over six dollars billion in shares. that was a result of the central bank stress tests. there were two routes, and they are worth going over again. all of the big guns past the initial one. that was what if unemployment hit 11.3% and stocks plunged 50%. can those banks with sand a deep -- withstand a big recession. the results from the second stage were more than that. it took into account of the polity of their processes. it was subjective judgments about management. and it was not just citi that failed. the u.s. units of rbs, hsbc and santander fell short. >> jon, what does it mean for banks in europe? >> probably hard to quantify but what is clear right now is that from her reputational standpoint people will be asking questions.f o for rbs, it is one more in a long list of issues. the fed objected to the u.s. unit's capital plan because of concerns about its practices for estimating revenue and losses under economic stress. this is the very same uni

just ask jonathan ferro. i get a full english and a black coffee? that is all.ion in the u.k. and europe pretty low, what does that mean for you and i? one way, up.gone for any self-respecting bridge, this is breakfast. allow me to present to you the full english i'm a saturated fat, carbs, and caffeine. pork prices are pushing higher in the u.s. we've got a drought in the u.s., southeast asia, india, and even australia comes in. then you've got coffee. people call it an early morning drink. i call it a necessity. the world'sterally biggest producer of the stuff and there is a drought in the country. the next time they tell you it is not forow, the british -- for the full british. >> chocolate godiva is landing -- expanding big-time in the far east. >> in the u.s. and europe, we are very well established and we are experiencing growth. however in asia, our growth is much more robust. dynamicsriven by the of the economies in asia, but also our increasing presence in asia, particularly china. >> linning comes to making chocolates, it could be cheaper to make it in

. >> thank you so much, jonathan ferro with the latest on the markets. the u.s. and eu tightened sanctions on president vladimir couldn't -- vladimir putin. european leaders are in brussels for a second day of meetings. ryan chilcote is on the ground. let's run through some of the sanction targets. sanctions target individuals and they include some interesting personalities. , theyllionaire brothers are both friends of vladimir putin. about $7recipients of billion worth of sochi contracts. not the only ones on the list. gennady timchenko was an owner of gunvor, that swiss oil trader that has been talked about. they had as much as $92 billion in revenue. he has sold his stake over the last couple of days. he is also a friend of president putin. really interesting, the u.s. alleging that vladimir putin himself has a financial interest in gunvor. the kremlin denying that flatly. also, your he -- yuri k ovalchuk, one of the owners of russia's largest bank with about $10 billion worth of assets. he is on the list. the united states described him as the cashier of krem

joining us is jonathan ferro. it was a surprise, wasn't it? >> it was a big surprise.massive ms.. -18.1%. a lot of people are talking about this being quite a cloudy number because of the lunar new year celebrations. of 2013. in january this year they were in mostly february. i think it's like blaming the weather. you know it matters, but you don't know how much. we knew the lunar new year happen. it's not an excuse for such a massive ms.. 30 out of 45 college avenue miss. >> it seems to be weighing on sentiment in equity markets, doesn't it? we are seeing equity markets weighing lower. some are saying we might see more ipos, and that could be one reason investors are more nervous as well. >> maybe. it's copper as well. we saw copper down as well on the back of that default. this is one country that accounts for 20% of global demand of copper. there is concern it will play out in a weaker price. the aussie dollar weaker again today. i think there will be more concerns over the potential for more loans to go back. people are asking where is the risk and where is the ove

jonathan ferro joins us. are citing a very key i ally of food and.ory yesterday talking about officials up repairing for the worst. let us be clear. we've been talking about this for two weeks. it is no one's interest to really push to trade sanctions and get trigger-happy. it is going to hurt both parties. it is still very speculative right now. russian equities are getting hammered. they're down as much as five percent this morning and 10% in total. that is going to hurt people. that is going to set them about food and to some extent. europe, how this plays out in each economy for each company is a specific case by case basis. >> this depends on how much business they do in russia. these are also sanctions that the russians could impose on copies for retaliations. >> we have an economy that is in decline. that hasa central bank had to lower rates aggressively. what is that mean to the economy? we haven't talked about a couple of companies. the one everyone is talking largely from russia. it is not just carlsberg. i'm talking about that translation

jonathan ferro is here with a look ahead. 7.5 hours. >> exciting times, looking for 149,000. if that number comes out, the three-month average will be 112,000. if these were the numbers at the end of last year, would they have ever tapered? ofund that magic number 200,000, what the guys on the board and janet yellen wanted to see. that is what they want. blaming the weather, the number of times they mention the weather was north of 100. weak data, they will blame the weather. economists have been missing this number by a good margin over the last two months. howt just raises questions, high is the bar for the federal reserve to deviate from its current tapering policy? >> janet yellen has already talking that has artie talked about needing a significant change in the direction of the economy. the federal reserve president of philadelphia, manus will catch up with him next week, talking about not just tapering, but not being aggressive enough in the taper. you a sense of some of the people on the board. the other side of this is unemployment. now 6.6%. we are .1% away from tha

welcome back to "countdown >> let's get right to jonathan ferro for your foreign exchange check. >> three to check. dollar u.n.. -- dollar you one. -- dollar yen. dollar coming back. ofdisappointing data out japan. the trade deficit. it will all be about the dollar and the federal reserve. $10 billion of tapering looks nailed on. the dollar coming up just a little bit higher. a neutral impact on the currency. they will have to be patient. >> welcome back. let's get back to events from ukraine. a day after vladimir putin crimea,d lance to annex as clashes in the region killed at least one ukrainian servicemen. timothy ash points us now. good morning. has putin outwitted the west? >> not really. he didn't win the first stage. sanctions have been disappointing. that's clear. let's see what the americans do and the europeans do later in the week. watch for friday. we have the european council meeting. the expectation is they will sign the agreement. it's not clear in terms of which aspects are going to be signed. there is an expectation building that ukraine could be offered something more su