manus, thank you very much. manus mentioned move on siemens. it is removing more than 11,000 effort to cutn costs. our international correspondent hans nichols is in berlin. jobs, yeah?ot >> it is an important distinction. we're talking about 11,600 takenons that will be away. some of those posts, some of those employees can be absorbed into other parts of the company. we don't have a number on that. it is positions, not jobs. is on the high end of what is been speculated or reported in local press, which was around 5000-10,000. aeser'sll part of joe k restructuring. clearly they're moving towards trimming costs. calls a quote from him on to investors. about 20% of those we believe can be put to work elsewhere, but not there. they can be taken out of the system because the work goes away. >> you think about the 20%, it refers to the 11,600 number. his are jobs that are going to be restructured or taken away. also on the conference call, he was pressed on the idea of selling the health care unit. there've been hints of them wanting to get out of

it is manus cranny in london.l the victory priced in to the move of the rupee and the equities market. >> exactly. i have and index which is up 16% today. we have a target of 25,000. a victory of the bjp majority, which seems to be the case. we are advising investors who at indices in other countries, including china. staying with india for the moment, do you feel the currency move, the space and time that they have been given in regards to tapering is a plus for them? can the currency move higher on this? well, the currency can continue to move indeed. especially since we don't have the final results and we are not yet -- there can always be a surprise. close.k we are very in our view, it will be other drivers which will take the lead. towhat would cause you change your view? if we saw a substantial majority going to the bjp or the nda as a , would that level of control in terms of decision-making in india, with that change your mind at all? is that something you think india needs stronger leadership? is that som

i am manus cranny in london. we are 30 minutes into the trading day.'s see how things are shaping up. we have managed to turn it around. markets had opened lower. stronger growth data from france, underwhelming stagnation would be the word in france. these markets have turned it around a little bit. -- focusingor sick a little bit more on what comes from the european central bank. first of all, the top headlines. japan's economy grew at the fastest pace since 2011 in the first quarter as consumers and companies ramped up spending ahead of a planned sales tax increase. gdp grew at an annualized 5.9% from the previous quarter which exceeded forecasts of 4.2%. here in europe, france's economy recovery stalled in the first quarter as tax increases by president hollande squeezed consumers. gdp was unchanged compared to a 0.2% gain in the previous quarter. germany's economy grew more than forecast at a rate of 0.8%. comesne composite reading out at 10:00 a.m. london time. russia's foreign minister sergei lavrov says ukraine is sliding into civil war that wil

manus? >> ryan, aside from the big address, a great deal will be focused perhaps on the position in ukraine, what else is on the agenda today? >> we will try to look at is this in russia from a couple different angles. we will be talking to jc deco. they have been in this country 20 years. how they are negotiating the crisis, why they are here, why does french inc. have so much here in russia when the u.s. and western europe has stayed away. we will also be talking to the russian finance ministry just after their meeting with visa and mastercard full stop the russian government and visa and mastercard are involved in a fierce conflict because visa and mastercard declined to service some russian credit cards on the back of sanctions a couple months ago. it was a temporary suspension, but it led to the russian government demanding very large collateral from visa and mastercard that the company say they will not pay and they may exit the country. those are important talks. there has been some a

manus cranny and jonathan ferro.tures higher. >> a little bit of a better tone to the futures this morning on the back of yellen speaking. german data was a little bit softer. ,he chinese export data story it is waxed and waned with china. i am lost. >> a lot of people are very bullish on china. they say even if it is not great , they have a great handle on it. i am with you. buyers beware. jon, central-bank action will be the other big story. >> things are starting to get interesting at the bank of england. there is a division starting to emerge in the ranks. report.s the inflation june 17 is when the ftc meets. that could give you an idea of when we might get some new rules for the housing market. >> we have the ecb and bank of england, and the other big story, barclays. >> it is probably the single biggest story. the stock is 5% higher.

i am manus cranny in london. .nilever the sale of ragu and bertolli will write over $2 billion.on the story, jon ferro has the news. 2 billion dollars is quite a sizable deal. >> it is. the sale, not a surprise. the amount of money, not a surprise. unilever a link back some food. they are going into the health and these the business -- health and beauty business. they sold skippy peanut butter last year. selling ragu, not a big surprise. thoseet revenue out of two products. it is a big sale. 2.15? that is a little bit higher. let's talk slightly more broad context. we had disappointing purchasing managers index from france. and germany possibly is the ballast. >> we say no shock and france but the market was expecting expansion. it was certainly a disappointment in that regard. when you have gdp at zero percent, we were looking for a rebound in this quarter. the main pmi is showing a contraction. that is not pretty. germany, are they going to bail out the rest of the eurozone? you have pressure on them to have some more domestic consumption to help the rest of the eurozone. are

there is the word. >> manus cranny with the latest on the markets. a reminder, a lot of the indices are closed. the ftse is gaining .2%. one of the few ones open in europe. joining us for the next half-hour with market perspectives on the big themes of the month, the global chief 345stor where he oversees billion euros in investment. thank you for coming in. is there too much complacency on the markets? we are worried about china and a little bit worried about deflation. the fed is the smoothest transition. we are worried about russia, and yet, the markets are brushing everything off. >> that is right. that is not so much complacency. people are concerned about a lot of things. there are a lot of headwinds out there. simply, we have seen the central banks have maneuvered the markets into believing there is a put out there. every pullback is seen as an opportunity. >> what happens with the ecb? with the ecb, we arrived at what the limit of the central banks can do. japan is aggressive. the fed has been aggressive. the ecb has a japanese problem. >> th

manus, the investment bank is getting crushed.st presented the strooge investors and girthing headlines. simpler ts to create a ank and more balanced. the language and the tone from jenkins, this is about rebalancing and we shaping the ank. john varly suggested to shrink the bank to 1/3. 2/3 of the assets will be in other parts of the business. re capital to africa and barclay. they did well in the first quarter of results. bear in mind that barclay has been dependent on the investment bank. this is about reweighting that dependence. where do you look for additional return for shareholders. the object sieve to take 115 billion pounds of legacy assets, run them down. tough market to do that. if they don't want them, who the eck else wants them? this is a very important point. jenkins is one of the few c.e.o.s who gives you the costs for running the bank. >> manus, thank you so much. manus cranny with the very latest on barclays. >> right. t's give you a bloomberg excluesive. the philips c.e.o. is joining us now. looking to the emer

manus is pointing his pen at me. thank you very much.the pulses coming up at the top of the hour. guy johnson joins us from the newsroom with a preview. >> i don't have a pen to point you, but things are serious. we're going to get an update from heather harris on the situation in kiev -- in the ukraine. ukrainian forces are trying to change the dynamics on the ground. i think that is as best as you can put it. we have a situation where it looks like separatists have taken control of most of the region. this offensive obviously is artie leading to casualties twoin -- with reports of helicopter thing down. let's talk about what is happening with the merkel visit to washington dc. we will address all of that. we will talk a little bit about whiskey. we have a great entrepreneurs piece coming up. aboutgoing to be talking man bags. $20,000 man bags. fendi man bags that are been modeled on a handbag all the peekaboo. is -- >> guy, thank you very much for that. let's bring up to speed on some of the companies that are on the move this morning.

manus cranny will be anchoring the program. manus, you're back to tell us what to. >> bob parker.y meant to take us around the globe. we will have him for about 20 minutes to talk about everything macro, and micro as well. we've been talking a little bit what is the shape of that deal going to look like. team -- some interesting takes in terms of collateral. if you want to do a deal and you want to get sky deutschland and what does it take? >> trying to get it done before u.k. elections. >> i saw a lot of that written up late yesterday. murdoch is succession planning, is it? >> we will talk burma, india, as well? >> yes. from ubs is that is already discounted and that india is squandering its demographic prime position. i'll tell you what that means after you finish talking. to bob. report shows concern about events in ukraine. bloomberg editor joins us now for more on the polls. on the positive take global economy, isn't it? not quite as positive as the beginning of the year. >> no, that probably reflects some of the things going on in the ukraine. tends to heighten concerns that

get two >> manus, thank you so much. manus cranny with the very latest on ubs and credit suisse.inancials, johnny, you are stockpicking. anything to be done with financials? it seems that some of the problems are being settled, but we still don't know the exact figure. we're three months away from the quality review by the ecb. should we just wait? >> i have been very uninspired by investment banking model's past and present. i have not seen anything going forward that would lead me to really change that few. we have stayed very clear of investment banks for quite a while. i don't see that changing just yet. inre are some sparks of life the asset management side, because i see that as a fairly tidy business. right now we don't have any because they have not met any of our valuation metrics. going forward, i would look at cases where there is a bit more self-help, where i can see some strategic turnaround. it is all furry well for the doj, but that does not change the business model very >> a lot of investors are actually looking at spanish banks to my right? plan at least banking

busy cult today, manus. i will see you in a few minutes. "the pulse" today, manus.k will list shares here in london and expects ts be to pay enormous dividends. 64yd's has announced investments worth about 11.4 billion pounds. intercontinentalexchange group euronext sharesf in belgium and france. the company could be valued at 1.5 billion euros. the ecb is expected to cut rates. we spoke to bloomberg from the ecb for him in portugal. >> there will be a reduction in the interest rate and a negative deposit on the ecb. what could be important in my --w is to work with inattention to the euro devaluation, because if we need to grow, we need internal demand. , malaysia air has yet to restore confidence in its brand. it is working on a full-scale review. details next. ♪ >> will come back to "on the move." i'm manus cranny in london. it has been more than two months since the disappearance of malaysia air flight 370. the carrier has been working on a full-scale review of its business. despite struggling with losses and rising competition, the company says bankruptcy is no

our markets editor manus cranny is over there in zÜrich. run us through the numbers.what is the number going to be focusing on? >> i think they are going to focus more on three keywords. return on equity? target.king to the we are on the way to the promised land. reducing --d assets moving the target on risk weighted assets in the businesses they don't want to be in down to 40 billion. management brought in new

manus cranny joins us now for more. what can we expect?looking at under 2 billion pounds for the corridor up from just over one billion, this time last year. .hings are getting better we know that the market is improving, cost are dropping and bad loans are falling. i was thinking about this last night. should i dare to use the term that it is a punter -- poster bank. what you are seeing is something that is getting better. call is the net interest margin, one of the boring, if any key metrics that we have to look up and i think it's getting better. what's interesting when we see the lloyds number is how they are doing on that metric because they warned in december that the net interest margin. >> the difference between what you charge and what you pay for funds. for those who don't know. >> i dread of that moment. can you define -- [laughter] >> don't worry. he's done it for you. talk about the difference between lloyds and rbs. >> to that end, when i use the terms poster child in terms of getting away, it is all relative. i have got to s

two very different things. >> manus, thank you. we are just over 10 minutes into the trading session. let's check on how the markets are shaping up. jonathan ferro is at the touchscreen with more. >> four days, no gains on the stoxx 600. we are snapping that today. ftse 100 up by about 0.2%. the dax also showing a quarter of one percent gain. in fx, central-bank meanings are going to be key. higher,lar pushing 1.3925. up by another 0.1%. mario draghi said the strength of this one may require further stimulus. talk and talk alone is not pushing this one down. you are seeing a relentless rise year to date. what can they do with the euro? above 1.39. pretty much every politician in france is complaining about it. can the ecb do anything? we are expecting pretty much nothing in terms of action. this one is going to be a big focus. >> thank you so much, jonathan ferro with all of your central-bank action. these are the bloomberg top headlines. stock markets from the u.s. to asia rose after fed chair janet yellen said the u.s. economy wi

manus is here.etons who have never met one another will be married live on television channel 4. 200 applicants. they are profiled and they will be married. and in the tv cameras follow them for the first six weeks. >> did you apply? comment. >> it is based on a danish program. >> do not ask me that. >> the reason why i do not do the newspaper section. it is unscripted. the danish version. none of them lasted. >> do not marry someone you have just met. children have been told to use traditional alarm clock rather than smartphones to wake them up so they do not become addicted to electronic gadgets. if you bring your mobile to your bedroom, it will impact your sleep. use the traditional alarm clock. what do you use to get yourself up in the morning? >> a smartphone. >> we know what keeps you awake at night. >> do not even go there. thank you. the parent of iberia, reddish airways -- british airways. the latest from red square. ♪ omnicomcis and canceled their deal to create the biggest ad company. app

. >> here is manus cranny with your asset check.e holding strong. >> a lot of europeans are closed. we will be closed neck's monday. there is a couple of dimensions to play with when the markets come back in full. saying, it isre sell and go away, that is something to be considered. china purchasing managers underwhelmed. the fed, they are happy with growth. in terms of the u.k., there are a couple of big names driving the market. chilcote, the only man that can turn the b-sky-b y into a ron burgundy story. up four percent. ealth management up at schroders. this is a big management company here in the u.k. nicely.doing quite the levels of earnings are up. we will talk about that story more with guy very shortly. in terms of the u.s., it is going to be a pretty big data day. you get an initial jobless spending.rsonal >> manus, thank you very much indeed. a as we had to break, just reminder, you can follow both of us on twitter. we are back in just a couple of minutes. ♪ >> welcome back to "the pulse" live from bloomberg's european he

market -- manus cranny is at the touch screen with three stocks to watch.y are saying they're not going to make the numbers in 2014. they're lowering the estimates from two of their key ventures that they look after. fourth straight year declines these boys. are the biggest in the world. they made a profit of two billion euros. second straight quarter of gains. 12 units.d over willy whilst delivering all around him i ag. -- quiteto find for us a paradigm for a ceo. >> the euro poised for its first weekly drop. signal that the policy makers may give in in june. thati said yesterday they're comfortable with taking action if needed. consumer prices rose 1.8% in april from a year earlier which missed economists estimates. domestic demand in china remains muted. south africa's ruling party won its fifth straight national election. that ensures the second and 20al term for the president years after taking power from nelson mandela. another story today that is taking everyone's attention is in russia. tanks and missile systems rumble across red square today to com

manus cranny joins us for more.ave to be impressed that we have missed it this time around. that is as far as we can take this. >> you are absolutely correct. the underlying work done by stephen hester who left the bank, many people are saying that the kitchen sinked the numbers at christmas time. to a certain extent what we have got is a jumping off point. the first profit since the crisis began. $1.2 billion. that is up from $400 million. the markets division is one of those ones where you would see more pay come through later in the year. markets are up at the markets division, costs are down. but investigations and regulation are going to be the dominant forces. the one thing that stood out for me on a couple of telephone calls yesterday was her should have been a big restructuring charge. it did not come through in these numbers. theye were saying 700, and are building capital. that is critically important. the one thing investors want to know because the government, rbs did a deal to buy out the government's a

manus cranny is here with more. for $1.1 billion. this could be bigger than $10 billion further down the road. pay a finep paribas of $10 billion? >> it sort of reaches into the realm of major adjustment and provisions. the bond market is already pricing in big moves. >> credit is reacting. you can understand why. >> pressure is going to mount. nine of the most active bonds trade in europe are. bob bonds. bonds.e paribas how are they going to earn $10 billion? they have only done it twice in their history. 2010 when they earned 10 point $4 billion and 2007 when they earned $10.7 billion. veterans tensbank of billions of dollars on a regular basis. jpmorgan has paid out the equivalent over the past number of years. someone like jpmorgan is different. this is a bank that is going to struggle to earn that amount of money. >> this is a time when the eu is conducting stress tests. >> when they don't want to lend. they want to reduce their overall capital commitments. they are trying to build reserves. that is when you have got pressure. t

manus cranny is here with the story. $10 million? we were talking $5 billion a week ago. >> the mood is shifting. the mood is changing. of the pond in terms of retribution. this would be the first french bank that the obama administration has gone after since he came to power. the severity of the penalty -- last week, i was saying $5 billion. it is almost like a ticker. why? his conduct more egregious. the bank did not fully cooperate. this is what irks regulators. if you have done something wrong and you have been found out, admit and help and assist put the case together. it is what the american regulators want. this would be a significant departure. we are not just talking about a $10 billion fine. we are talking about a criminal commission. a guilty plea. that would be a huge departure. other banks got away with a slap on the wrist, metaphorically speaking. barkley, $290 million. just when you thought, wow, $1.9 billion. 10 billion dollars is in another category. >> it wasn't long ago that they put aside a 10th of that amount? >>

our markets editor, manus cranny. >> welcome back.

our markets editor, manus cranny. >> welcome back. equity markets are going to digest every nuance that comes through. mr. constancio is saying that that biggest concern is inflation. the money data was tragic yesterday. it heaps more pressure on the european central bank. the united kingdom talking about what the market needs to do in terms of rates and in moving that a little bit higher in taking baby steps. u.s. gdp. on a quarterly basis you will see, an analyze basis you will see a number over 3%. on the quarter a contraction. volumea, the flow of will be lower because of ascension day. ,etlet's have a look. kingfisher misses. sales rose to like by 11%. not enough to save the day for kingfisher. tesco signing off on their joint venture in china. that was seen as good news for china resources. tate & lyle missed. the conversation that martin will brought out in the equities talking about the need for baby steps, as we look at some of the u.k. exposure sales. -- barratts up 1/3 of one percent. 6721. is cable 1. it is hardly had a ma

good morning, manus. >> a very good day to you.y big day ahead of us. 300 clients here at the goldman -- ideasa summit summit. i was looking at the rundown of subjects. demographics is a really hot topic at the moment. how do you look at the world and its ever exploding population? the reality is actually that we will live in a world with people that are a lot older and the total population will be smaller. to keep your spine that is falling fertility and increased longevity. >> talk to me a little more about that. do falling fertility have to changing demographics? women perhaps deciding to have kids until they're older. is that the driving force? iswomen being more educated a huge driving force. we estimate that in the least ,bout companies -- countries the fertility rate can drop by 5.25 children. the displacement rate around the world is 2.1. shopping fertility, not just develop market issue, also developing market issue areas thailand and vietnam, both have lower fertility rates than europe. europe.entioned there is a great st

we will give you details. ♪ >> i am manus cranny.the move online, on your tv, and on the amazon fire tv. here is one stock on the move. it is the dutch retailer. the stock is up 3.34%. -- down 3.34%. margins in the united states of america. if you are a stop and shop culture, you are not paying as much as you have to that at other stores. margins under pressure. online sales up, but overall sales dropping. ahold outperformed by raymond james. suspicious on the ability to deliver at the death rate taylor -- at the dutch retailer. glaxosmithkline will face a criminal row. it comes amid ongoing investigations to bribery accusations in china. here with the story is caroline hyde. where are we with this? the chinese have been investigating. >> chinaeally serious has been investigating ten-month but there is no direct link between the office. we do know it is the first confirmation that there will be a criminal investigation into sales practices done by glaxosmithkline here in the u.k. the office will be doing be investigating. it does not

. >> the building housed the library with books and manu scripts. 2 million books and many pricelessanu scripts had turned to ashes. >> it was one of the biggest losses to bosnia's culture ever. >> during the 19th century, the communist government turned it into a library, and it was a favorite haunt of university students until the war broke out in 1992. now after millions of dollars of restoration work, sarajevo's building is open to the public. >> don't forget that you can get the latest on all of the day's developing stories and the news on our website. the address, aljazeera.com. >> in 2009 peace came to sri lanka after 26 years of civil war. >> government troops had crushed the tamil tigers - a guerrilla force which had waged a brutal insurgency seeking self-rule for the tamils c a minority making up about 12 percent of sri lanka's population mainly living

i am manus cranny. go to jonathan ferro for an fx check. >> the euro getting weaker just off year high. a.m.sales -- 11 it has been all about mario draghi. ecb is concerned about low inflation. he repeated there's no debate about the goal which is to return inflation to 2%. the euroas called it versus sterling. >> ukraine's new president says he wants to talk with president putin to stabilize the situation in eastern ukraine. says it could put an end to the conflict. european leaders have failed to quickly endorse him at the next -- as the next president. his conference in july's european union and drug detractors at a time -- and drawing detractors and a time. this -- ands strong where growth is the strongest. it is in response to a changing market. >> we saw a lot of the issues. it is -- we have positioned the bank well for it. this is part of the natural cycle of the is this unit we have done well. and --d like to target >> welcome it is over. of the good old days are gone sadly. --na's largest devel

manus cranny is at the event speaking with chief executives and global policy makers. manus?m joined by andrew wilson. the head of the rates business. great to have you with us. tell me about this summit. it is the first time that you have done this kind of thing but it brings the clients into the building and gives you guys an opportunity for some things on this agenda. >> i think it is a great opportunity. we have over 30 external experts and over 300 clients signed up. we're looking at things like what's happening in emerging markets. they were going through a transition driving growth. with they going to provide the same growth going forward? demographics and of course geo politics. there is a lot going on around the world. all of these things talk about your long-term investment idea. that is what this is about. taking a step back looking at your long-term investment ideas. >> does it give the opportunity to think about the big ideas? where we are now with central bank policy, it is like herding cats. we're going in different directions. the fed on paper. bank of japan.

our european markets editor, manus cranny joins us now with asset check.bably not for me for football. we have a little dip in these markets. you are coming off six-year highs. give the thing a bit of a break. china inflation is slowing. the ecb are talking about some action next year. interest rates are already discounted on this map. a rate of around 0.1% next month. goldman sachs says it is a 40% possibility. productionustrial was a disappointing. the market was looking for much better numbers there. u.s. equity futures down. jobless claims were the drivers yesterday. nasdaq is indicated down. s&p futures virtually unchanged. we will keep an eye on those u.s. equity markets. see how they play out as the morning goes on. draghi'sar, there is impact in the moment that he spoke. will it work? there you go. you see the moment that draghi spoke. this is perhaps the floor in the currency market. think probably something else just to keep an eye on is sterling. that will be the other things in terms of our equity market. where are we going to go? what is going

." >> i'm manus cranny.hina pmi rose to a five-month high sending asian stocks higher end optimism that the economy is stabilizing. here to discuss the issues is chief u.k. economist, rob. good to have you with us this morning. let's kick it off with china. the pmi still contracting that the export numbers are good. newport are numbers are good. should we be heartened by this? >> they're slowing down. it will not be growing at 10% year on year, but what we're seeing is some stabilization around the rate of growth we have seen recently. that is both in the pmi but also the heart of data as well. we like to see that continuing and that is certainly our view. chinese authorities have plenty of economic levers that they can pull. >> do you see them doing that? is that part of the agenda, in your view? avoid it,uld like to but equally they want to avoid a hard landing. our view is that china will continue growing at seven percent. it's unlikely they will need to do anything germanic, but if they do need to, then

i am manus cranny. from the start of the trading day and week, our reporters have everything covered. our europe editor david tweed. jon, let's kick it off with you. it is hard to call it the futures. no clear direction. despite gdp numbers, we are higher across the week for a fifth straight week. the stocks keep pushing higher. credit suisse, the focus. do we final close the chapter? willow bay pleaded guilty? -- willow bay pleaded guilty and what are the consequences? >> caroline, what is on your agenda? thehey are cautious on second half of the year. profit is down 8%. fares are dropping. competition. you have no region airlines as well. sales are up 3%. profit is likely to gain. why? we have traffic up on the four percent. still remaining cautious. wordsro visibility, their on it yields. with had mixed calls. higher than 3.5%. more the bright side of things. >> let's leave it there. let's go to david tweed. he is standing by. i look at deutsche bank. -- a look at it deutsche bank. they are going to

than 15 minutes we will hear from manus cranny's interview with the ceo.tay with us for that. >> casualties are threatening to .ndermine insurgents killed for government troops. killed 20 forces rebels and dozens of civilians were wounded in fighting according to the russian news agency. ryan hasl go -- details. >> just to give you an idea, if you take a look at the map of ukraine, i'm going to start in the southwest. country's third-largest city. odessa says they are sending a special forces unit to keep the peace after the storming of a police station on sunday and ony tragic clashes we saw friday. odessa very much in play. the capital has been quiet for a long time, yet they are setting up 10 checkpoints on the outskirts of the city. they say they are concerned about victory day. bordere moldova and looks pretty far from everything. a 700 mile border with ukraine. this is just dirty miles from odessa. they are concerned they brought the border to high alert. most of the trouble has been in the far east of the country. is when ukraine goes to hold its pr

manus, thank you very much.the jobs sector. >> in talks with merck prepared to pay $14 billion. hands nichols has been following that story. that is much higher than the initial $10 billion price tag, isn't it? >> it is apparently worth it to bayer. they are in talks. we could see a deal in the coming days according to two people familiar with the matter. there is a bloomberg scoop from one of our colleagues, stateside. ask yourself this question. do you need prescriptions for dr. shoal shoe inserts? the answer is no. you see these two companies wanting to get back to what they do best. what their core role is. bayer wanted to have a consumer unit and you want to see merck get more involved in animal sciences, the veterinarian unit and you want to see basically leaner and more narrowly focused company. that is what could come out of all of this. rickets said $14 billion is too much for us. now we have exclusive talks in agreement and principle. it looks like this deal is all but done and dust. they need to have

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 speaking differently, because most governments, even the most alo-european nation k government already plays a cynical game with europe. they participate in decisions made in brussels with other governments, and then blame brussels as if it were a for thet thing sometimes unpopular consequences of those decisions at home. >> what i want to know, mr. monti, is they should be listening more and paying more attention, should they therefore be lobbying to change their fiscal policy? this viselike grip that we have in terms of ?tepping back from spending is her case to me made for adjusting of fiscal policy? >> there was a case already. reinforced, but i think one needs a balancing act, many countries in the south have made progress toward achieving budgetary discipline.

in london. ♪ >> let's get to manus cranny. with dollark it off yen. they leave stimulus levels unchanged. jpmorgan says they have no intention of anymore easing. the bank of japan with a rather optimistic tone. you had a fairly reasonable move yesterday. dollar, lost one percent of its value yesterday. i on our prices -- iron ore prices are the lowest. they still believe that rates will go lower on the back of the current. >> thank you very much. u.s. authorities are seeking more than $5 billion from bnp paribas to settle investigations into the banks dealings with sanctions countries. a temporary ban on transferring money into an out of the u.s. might also be part of the settlement. the former chief executive of jpmorgan's china investment bank has been arrested in hong kong. the magazine says his arrest may be linked to probes into the banks hiring practices in asia. a board member says he sees new risks to financial stability. he talked exclusively with bloomberg and says the combination of generous central bank policies and the search for yields a

let's check in with politico mano raju on how this is playing out in washington, and, manu, it seemsraine crisis is strengthening washington's ties here with germany. what's your take-away from today's meeting? >> yeah. they really wanted to show a sense of unity with germany. really the united states needs to be allied with europe over moving forward with a broader sanctions regime. you heard the president raised the specter of doing sectoral regime going against finance and against the defense industry, the arms industry there. the issue for europe is, of course, the concern about -- about the impact on energy supplies, russian energy supplies, whether or not any broader sanctions could hurt their ability to their use and import of all these russian oil and natural gas supplies. that's going to be the question going forward for them. while they showed unity on the issue of ukraine, of course, germany and the united states are clearly not on the same page yet when it comes over to the national security agency, the domestic surveillance program and what came to light over the edward

it is still incredible to see tsipras name up there along with juncker. >> manus cranny asked him about state of italian politics. >> i'm confident that prime minister renzi will make use of this mandate, not by going there and trying to throw things upside down, but rather to continue the action that italy has been moving already. there are two governments that preceded renzi to persuade germany and other countries in we all, including them, need to pursue structural to have a home and continuation of budgetary discipline, but one which is more forward-looking and more respectful of the need for europe to increase its public investments. >> time government bonds are surging this morning. been released, record lows around the periphery of europe over the past month in the bond market. are we getting something wrong here? is it too little risk for markets? are they assuming too little risk in the periphery of europe with those bond market? ts? >> i don't think markets are going to sleep as he unfortunately did for 10 years after the inception of the euro. i think they have understood tha

. >> manus cranny with the latest on the markets. let's pick up on those themes. .oining us is bill blake and great to have you on the prog ram. we were talking about tech last week and now we have alibaba, the greatest ipo ever. should we embrace such a huge valuation? >> one of the first things you have to look at is that alibaba is not a typical tech stock. it is a chinese tech stock and that is a completely different thing. you cannot do internet sales into china. you need to be chinese. you need to be chinese-based. that raises issues to think about around alibaba in terms of how they run their businesses. they are probably not catchable. it is the fastest-growing largest single market that is one to think about. >> at the same time, we can't know what growth figures are like. are the valuations too hi? not as high as some were expecting. it is good news for those who were fortunate enough to get in at the beginning and stuck with it because they understood the potential. -- i think the valuation will be a bargain for investors

tong forward, the point build on manus' story, has the u.s. regulators will be with investigations in europe? they got the guilty plea. credit suisse is the first and the long time, probably not the last. >> any euro fighters flying over you, hans? >> the next time a euro fighter by, there are two overarching questions. will the berlin airport ever open? 2017 is one of the best case scenarios. convince theriers german government to open more spots so they can service this airport? >> banks have been accused of colluding to rake interbank lending rates. >> thomas up next with surveillance. see you tomorrow. ♪ the pfizer acquisition of astrazeneca is near collapse. -- bradygan" its ways dougan and credit suisse regret past misconduct. charges of intrigue industry and espionage for china. good morning, everyone. this is "bloomberg surveillance." me, scarlet fu and adam johnson. important breaking news. the european union is accusing jpmorgan, hsbc, and credit agricole of rate rigging. the three banks did not sign onto the settlement deal last yea

i am manus cranny in london. equity markets are trading higher.at -- it is just off a record high at 9861. what you have here is stocks starting the week with a nice lift. we are waiting to see what mario draghi has to say. gdp will come out from the united states. it is a big week for data. jon ferro as those on the touchscreen. >> it is a big day for italian markets. italian assets doing the talking today. italian 10 year bond yield, huge move. down 13 basis points. there is one reason for that. matteo renzi, the prime minister , it is the first time he has faced a national vote. an overwhelming stamp of approval. renzi's party with 41% of the vote. that strengthens his mandate to do more. the risk is, we came into the elections with political instability in italy. approval goes to matteo renzi. italian equities higher, bond yields lower. euro-dollar pretty much flat on the day. mario draghi talks and about 40 minutes time. >> we will be listening intently for that. these are the bloomberg top headlines this morning. thailand's army commander ha

it housed the city's librariway rich collection -- with library with a rich collection of books and manu scripts. many turned to ashes. >> translation: it was one of the biggest losses to bosnia's cultural awareness. >> the communist government turned it into a library. it was a favourite haunt of university students until the war broke out. the famed city hall is once again opening its doors to the public. >> that is our website. that's the home page on >> it's been widely reported that apple home of itones is preparing to buy beats electronics for $3 billion. why would the company who revolutionized the music industry with the $0.99 download buy

manu, i want to start by looking at this georgia race. it looks likely to head to a runoff. david perdue is sort of the front runner at this moment, but i'm wondering if they go to a runoff, does that sort of change the complexion of the race? it seems to me if a tea party candidate could make it into that runoff, they could potentially consolidate the tea party wing of the party and maybe give perdue a run for his money. >> the runoff is going to be huge. this is actually the longest runoff in the history of georgia. typically they have been three weeks long. georgia had to extend it to nine weeks. that's basically forcing these campaigns to run a whole new brand campaign. these guys are going to be fighting for every vote, for a small number of votes that's going to be dominated by conservative activist voters. it is a real risk for these candidates who are running. it could be jack kingston, david perdue, or karen handel. each of them are going to be courting that tea party base, the voters, the base of conservative base voters. they are going to dominate that runoff. and

manus cranny joins us now from zÜrich. it is about numbers and strategy.is about strategy and patience. a special reward and capital return. $.25 is the special holding. they have broken through on the buffers of capital. they are going to a bigger reduction in weighted assets and the profits. they reduce the assets and i think when you look at the , the expensesk are rising at the investment bank asset management. when it comes to moving away, 10,000 job cuts and it is all about the quality of cost cuts at the bank. count is a proxy of cost initiatives. the most exhausting is be ready -- the headcount reduction. targets inieved our cost reductions in the last with 42.1 we continue billion to reduce cost rates. time that the banking industry moves away from cheerleading with job cuts and talking about cutting costs in different ways. an interesting message for the shareholders today. >> cost-cutting has been an issue. they have been a big feature and the other is a massive fine. let's talk about credit suisse. for u.s. citizens who avoid paying taxes. a he

el turno para manu ginobili. bingo! tomando ventaja en la serie, tres a dos. ♪ ♪ >>es recordamos que desde junio serÁn las elecciones primarias aquÍ en california. las urnas estarÁn abiertas de siete de la maÑana hasta las ocho de la noche. recuerden que su voto es su voz. las cifras muestran que la mayorÍa de sus empleados son hombres blancos, reforzando el estigma de la compaÑÍa de tecnologÍas sobre la falta de diversidad Étnica y de género. y para centroamÉrica no sÓlo cuentan en un 3% de los empleados. no son de raza blanca. y entre Éstos, 30% son asiÁticos. el magnate de internet atribuyÓ a la falta participaciÓn de las minorÍas en carreras relacionadas con la tecnologÍa. otra cita de impacto, gracias. ♪ ♪ >> es jueves 29 de mayo de 2014, estos son los titulares: millonario compensaciÓn para un hispano golpeado por guardias en una prisiÓn de los angeles cuando visitaba a un hermano preso. le contamos el drama que viven cuando regresan a su paÍs de origen los deportados.

sabrina, igor, and manu are back with me and we're joined by faith jenkins. igor, i want to start with you, start with this idea, i think there's a real difference, obviously, between donald sterling and what he said and where mark cuban was going. and while cuban's comments were definitely, inelegant, shall we say, i do have a concern about this idea that if we're going to say we want to have conversation in the aftermath of trayvon martin, in the aftermath of all of these things, we've got to be willing for people to sometimes make mistakes in the way that they say it. >> i think so. but he creates this false balance between a black person in a hoodie and all the history associated with that and a person with a tattoo. i don't know any great injustices that have done to people with tattoos. i guess it's good he's being honest, but when was the last time that mark cuban walked down a dark street alone and actually experienced this. i don't think it's happened to him recently. i don't know how true this is to his experience, or is it something that he has jus

market -- manus cranny is here.board member has spoken and has warned about low inflation. >> a recurrence theme. the speaker yesterday said that negative rates are something that you have to tacitly accept if you want safety. the extended lower inflation that is the risk. with that in mind, he says that the ecb has instruments to face this risk. the issue is where does the euro go. hasn't run out of steam? they say that it is unlikely to depreciate in coming months because they lower the rate. they go into a quantitative easing mode. hot money flows in. >> it has done in anticipation of that. this is the theme that is coming through. i guarantee you that you will be using the word counterfactual. >> counterfactual. stay with us. this is on the move. we will be back tomorrow. i will be back with you in four minutes. do not move. . . >> we are slowly but surely approaching a second cold war that nobody needs. russia's primeom minister, speaking exclusively to bloomberg. >> and credit suisse leads guilty. they face $2

manu, i don't know if you loved it, they were loving it. talk about that.it's going to happen, but to see it. if she runs, he does, too. >> exactly. some of it has to do with his health, whether or not she runs does not necessarily have to do with how healthy she is. of course, that's very important. how healthy is bill clinton? he's going to be on the trail, defending her, her chief spokesman in a lot of ways. he'll have to put in the hours and stump for her. he's had the health problems over the years. that's a big question going forward. >> this week it sounded like he was red on the gas, ready to go. >> they're afraid he's going to go into kentucky with allison grimes. >> he already has. >> the clintons feel like they've cracked the code on how to respond to these personal attacks, to lean into them, to borrow a phrase, go hard on the idea they're being personally targeted. hillary has a very active base of people eager to see him as a victim. i think the clintons have an effective way -- >> interesting to see how she deals with the rollout of her new b

manus cranny is at the event speaking with chief executives and policymakers. he joins us now.her exclusive lined up. >> we have. is the chairman of golden's -- goldman sachs. it is great to have you with us this morning. out from the first part of the conference. you said something that is important. we have noteform focused enough on. >> there are two intersecting trends going on. one is the recovery from the recession. people are looking at the possibility of the exit strategy. around the world, you can see the critical importance of the structural forms and future growth. if you take the monetary policy, we have had some extraordinary actions that dampen interest rates and increase asset values. can those valuations be supported by the real economy? that is a question of productivity and growth and national economies. >> who is leading the charge in that structural reform in your perspective? i am talking about the europeans. >> spain has made some very significant reforms. you have seen the cut in employment costs. it improves its export position. one of the challenges is

manu ginobili. what's he going to do? shoot. that's what he does. 7 of 9 shooting, 19 points.l is in full "gma" feel right now. tim duncan, extraordinarily tall for a human. duncan had 22. spurs up 22. danny green would like to shoot it. shelly smith's not going to come on now. she did earlier. spurs win, 3-2. >>> my brother lives in montreal. i didn't bet him on the rangers/canadiens. second period, no score. mcdonagh, to doyle, to moore. >> i thought your sister lives in copenhagen. >> no. she lives in amsterdam. my brother lives in montreal. >> what a family. >> very international family. thank you. empty net for the canadiens. they have to score. or they're done. henrik lundqvist, kenny calls him the king. off the coconut. the rangers are going to the stanley cup for the first time in 20 years. >> if you ever meet a hockey player, just add an "r" or a "y" and he'll think you're pretty cool. >> all right. >> too much fun. >>> some police officers in texas found themselves in a sort of strange situation. they were called to a store after two deer broke through a window and w

i'm manus cranny here at bloomberg's european headquarters in london. here's a picture for you of european equity markets. r. are flattered gross to mastech part numbers. we are waiting for housing starts in the u.s., along with consumer confidence. are we getting set for a pullback? that is the question on traders minds. like mr. modi will indeed take power. we have broken the 25,000 level on the sensex. certainly, a great deal of uplift. some stocks are very interesting. this is just a complexion for you, a little bit of an indication. thosen eye on some of stocks. those are markets. let's give you the bloomberg headlines. ukrainians have dislodged separatist from several bases in the east. the government is working to expand constitutional powers to allow for local self-government. u.s. and european officials say they will punish russian industries if this month's presidential election is undermined. bad loans at chinese banks rose the most in any quarter since 2005. this is the 10th straight quarter in the default. chinese banks will build offers to