the turning point for peugeot.they bring in dongfang and the french government to shore off finances. we will have more next. ♪ >> i am anna edwards in london. this is "on the move" on bloomberg television. here is a stock that is on the move this morning. peugeot is up by more than 8%. company agrees to bring in dongfang, the chinese car manufacturer and the french government as investors. let's get all the details from manus cranny. it is complicated. >> you know what, trying to take away all the numbers and the nitty-gritty bits, what you have here is a turnaround story unfolding. you have new investment. they had a marriage with gm, didn't last long. eng coming in,f taking a 14% stake on equal footing with the french government and the fusion family -- peugeot family, capital in place, almost 6 billion euros worth of financing in place. that is the critical take away from this morning. you have bank credit lines, your sorting out the financing arm of peugeot which is a 50-50 venture. that will produce more cash

>> i think it is a good deal for peugeot. also, dongfeng gets the expertise that peugeot has.ss carmaker. it is swamped with so much competition. 2008, peugeot share price was 45 euros. it got down to 4.5 euros. it got up to i think on christmas and rallied from nine to 12.5. fore shares are being split 1.1 billion. that gives each company a massive commitment. there are synergies or savings of about 400 million euros a year. as long as the design goes through and the market demand doesn't drop off, i see this as positive. otherwise, i don't think peugeot has anywhere to go. seems the joint ventures are the same. we have seen what has happened in japan with renault. >> they do have something to prove, don't they? they were teamed up with gm for a while. that didn't deliver the synergy they wanted. >> i think the culture is a bit different. there has to be a will. general motors has done pretty well on its own out there. i think this shows very positive signs. >> carlsberg airings -- earnings beat estimates. the russian market is shrinking at the same time and it is pushing int

peugeot shares rising this morning. they are selling stakes to dongfeng and the french government later this morning. we will speak to the company's chief executive, philippe varin. that will be his first interview of the day. the details of what we have learned over the last 24 hours -- manus cranny joins us. with thekick it off shape of this deal. the question for shareholders is whether it is capitulation by peugeot in terms of going on this -- i suppose tripartite. dongfeng is coming in with capital and the french government coming in all on an equal footing of 14% shareholding. we're going to have a rights issue. they have shored up their defenses in terms of access to finance with the banks. the capital has been taken care of. dongfeng is the partner of choice. they have tried to sell other assets rather than turn to dongfeng. what are they getting out of that deal? we have got research and development, that is what we're hearing mr. varin saying. technology sharing for dongfeng. the three of them are all in. the

the numbers from peugeot were already.hey're making some progress in what is a really, really difficult environment. the european market was very, very week last year. utilization levels were low and peugeot has been losing a lot of on market share. so they're doing the best in a very, very difficult situation right now. >> but things are improving, aren't they? the cash flow rate was flowing. >> yeah. it is flowing and clearly the cash flow is not as much as it was in 2012. but in the second half of the year, they still burned between 1 and 1.2 billion euros, which is equivalent to three euros per share. the reality is they're not out of the woods just yet. >> how much of a difference will it make for peugeot? it can't face the underlying of weak sales in europe and very low market penetration in asia. >> that's right. clearly injecting 3.7 billion euros in the business will allow them to make some strategic decisions they haven't been able to make. they can obviously invest in some of the technology. what is clear is the

>> how is peugeot doing? >> peugeot has had good numbers. it is at 30%.isappointing ones were mercedes. they were down a little bit. bmw had a modest growth. bad.- gm, not board is meeting today. will they get the 3 billion euro cash infusion from the french estate? it could change the look. they will need stronger growth domestically. these numbers show maybe that is where we are heading and the right direction. >> hans nichols, thank you very much. it was fashion week. burberry keeps getting stronger. yesterday, the rebuilt -- and they revealed a new collection. , for the firstw time, the specially arranged runway was available for download on itunes. home on dedicated itunes. the first to capture the catwalk and stream it5 alive. such powerhouses coming together where fashion meets technology. we will stay with a luxury. how one hotel chain is breaking luxury to the alps, that is after the break. ♪ >> a cosmopolitan city hotel chain has moved to the alps. a weeklong series about the highlife. the move into the alps. >> meet the newest full-time residen

peugeot is up.ting on whether or takeo accept this offer to a 3 billion euros stake in the company. the overall picture in france, positive. when you look at some of the other figures, it is only mercedes that had disappointing as well.nd gm that is a little different because they're pulling out of the market. one cautionary note on figures we have gotten on german investor sentiment, it is down. unclear what is happening. we have strong auto sales, showing a positive trend, but the investor sentiment may tell a different story. hard to figure out what is going on. >> maybe they are investing in cars, not stocks. >> yes, car collectors. hans saying you feel more confident when you're behind the wheel. as the latest on carmakers. here's what else is on the radar. >> italy talks with leaders today. renzi has pledged to overhaul the labor market and to change the country's election law. all of this in the first 100 days of his administration. >> opponents of ukraine's government wants lawmakers to put

the chinese carmaker is in talks to buy a stake in peugeot.ey prepare to vote for the proposal that would raise 3 billion euros for the french carmaker. alcoa will close its unprofitable plant in southeast australia. reducer set -- producer set it is unsustainable. the closures will reduce capacity by five percent and will result in the loss of 1000 jobs. welcome back to "countdown." i am mark barton. get minutes from the bank of england meeting from early. the next guest said after the publication, the rope toward, policymakers -- the report, the policymakers will try to justify. let's welcome richard jeffrey. good morning. joining us.r another policymaker has spoken. he spoke to us yesterday. to havethe economy has more spare capacity than the bank of england's main population has shown. they said the capacity is 1%-1.5% of gdp stop it shows a greater debate going on within the bank of england on this specific matter. >> i think spare capacity is a difficult concept in economics. it is rather nebulous. i would not want to put policy on estim

peugeot was once doing 10 million a month in iran.they have started shipment to the iranian capital. they're hoping the production will increase in the first half of 2014. businesses is for an opportunity not to be missed, it seems. you have a market of around 77 million people. it has the world's largest oil and gas reserves. such as ther names, french banks, telecom groups, pharmaceutical, and aviation companies who also are part of the trip. >> this is important for the irani and economy -- for the iranian economy. what will the iranians be gaining from this? fromey were prohibited almost all western trade. the business community is now very much in need of foreign and technology to revive its industries. the country's domestic industries are in particularly bad shape. some of them have gone bankrupt. below are operating well their capacity. i talked about the car industry. iran's car production was almost half between 2011 and 2013. it went from 1.7 million to just 500,000. the cost of ordinary life has also increased dramatically

blues will destroy the counting achievers the only job he could find was sitting so many years peugeot is it unto one of the most recent city is the goal. in hope for a new age. but since only core course. few tourists. i'm so excited. he now hopes to add on e bay the government would bring stability to the country. owen was hers or look over the store i was disappointed that the resolution did not achieve what we wanted. if we can restore security the economy will start tomorrow. opening up more job said factors. i'm sure the tourists will come back with the lid on this unusual the ottoman think i've ever tasted. sophia. the new letter indicated that the government. under the bed it was before. the thing there are better. it's going to snow in tokyo saturday and expect the white stuff to pile up. our meteorologist roberts pants more rubber nestle skin radiance this is our talk about what's already happening across parts of western japan he can show you video coming out of hiroshima where the snow is already coming down here in the lap record a few centimeters is the kind of lee's will

motor has dongfeng suspended voting with a tie up in -- with peugeot.rench government would hold a roughly equal stake. it would create a three headed socket that would make the company difficult to run. the cost of the luxury market may pay off for the italian bank -- furla.left they target the rising middle class. concerns about qantas continue to rise. the cost of insuring against default are increasing. politicians are debating what form the support will take. those are the top corporate stories. with australian mines, the central banks are signaling no change in sight will stop let us get the details. dan petrie in sydney. they think it is all working. working,ink it is all and they want the stability. they want the most couldn't course for the time being, stability in the interest rate. looking at these minutes, taken when the aussie dollar was around $.87 -- they did welcome that more competitive post of the currency. that is a bit of a problem. they want to keep rates at 2.5%. if you look at the takeaway, the idea of rate cuts -- of course, the

the move follows years of losses than a sluggish european car market that can help get more peugeot cars on the road to come. it's that time and will be a lifesaver. the chinese car market is the biggest in the lounge and has been growing comes to us. the show to steal but don't fret mohawk triple its sales in china to one point five million cars by twenty twenty you will check and told the news and chat with don't think the french government some say what is afraid that the deal means to want only to china it. this cynical about the new venture. it was the chosen thee and to the chinese market share thus the nationality of the shadow does does not make any difference the mistake of good looks are the stuff but of course we know the old socks. with an american chinese or french. we will defend ourselves against them the cash infusion comes as pressure faces declining european sales. the troubled company has already cut into one affecting the cars paying off eleven thousand workers now there are plans for new research and development center in china. was it was just another day of course

peugeot.y will be selling to a chinese company. , ashe future of the company i have told you, is unprecedented in europe. today, we are in a position to sell 40% of our cars outside of europe. it was only one third four years ago. in 2015, it will be 50% of sales. beyond, we will become a global player. carlos will set up a strategy for the future. the group will be a global player supported by france, where we remain a very important industrial manufacturer. there will be a clear opportunity of development with dongfeng. beyond the immediate synergies of 400 million euros, let's say in the beginning of 2020, i am sure there will be more options. still of value to the supervisory board. ngfeng has numerous partners around the world. here is a bit more on the little-known off -- automaker. >> next up, we are talking the divorce economy. how much it will cost you and your family, and where the majority of the for c's live. and the creative genius behind "american hustle." our conversation with d

they're taught to be in talk with france's peugeot on a possible partnership.geot negotiators were in china this week for a final round of negotiations. >>> the flavoring company which makes soy sauce and oyster sauce, fo is shan, shares were temporarily placed on a trading hold after exceeding the daily limit. >>> and some earnings we're following out of australia, amz shares nudging higher after reporting a 13% high. mcquarry shares were down after the group gave a cautious trading update. annual profit was on track to exceed $1 billion australian dollars for the first time in four years, but only if market conditions don't deteriorate from here. >>> and shares of cochlear tanking after a nut profit falls 73% to $18 million. >>> now, over in the u.s., the obama administration is once again delaying the health care mandate for small businesses under the affordable care act, giving them another year to comply. the employer mandate of obamacare was originally scheduled to take effect in january. but the white house granted a one-year delay last july. the latest

peugeot is about to confirm its alliance with the chinese carmaker.rday, the members of the family approved the alliance despite the opposition. the chairman of the board. the mranl is now expected to be approved by the vote of the company. the two carmakers are expected to sign mou, a nonbinding agreement today before the official announcement that we are expecting tomorrow when peugeot will vote its full year earnings. over to you. >> for volkswagen, it's quite a surprise. the company has seen a whooping 8.9% higher car registration than a year ago. and that is actually quite surprising across the board. while its premium segment audi cars are up by 8.5%. their value brand scoda is outperforming that by an increase of on more than 10%. so maply the demand overall is driven by more or less compact cars, it seems, and a little bit by the luxurious settlement. but looking at the car ridge administration numbers of daimler and bmw, they came in rather disappointing. we even have ady cline in car registration when it comes to the daimler numbers of 0.6%.

car company peugeot has revealed plans to launch a hybrid car that runs on air.know when the tank gets to empty when the car screams, "i can't breath." [ laughter and applause ] saudi arabia scientists found evidence of a contagious coronavirus in 74% of all dromedary camels, the one with one hump. so remember kids, one hump is all it takes to catch it. one hump. [ laughter and applause ] a man arrested in key west for cocaine possession told police he thought cocaine wasn't illegal in florida. police responded, "fair." [ laughter ] that's fair. but just remember for next time. [ laughter ] i cannot believe this. a man is planning to jump off mt. everest wearing a wing suit. apparently he told the press, i'm not afraid to die and to that man i say great news. [ laughter and applause ] i have got great news for you. a 72-year-old substitute teacher in connecticut was arrested for openly masturbating in a school hallway. [ audience ohs ] or as he called it, stepping out to clap the erasers. [ laughter and applause ] which i think is more charming. more charming tha

the peugeot founding family will give up control of the family if the deal is approved. gm is going aluminum. the automakers ramping up efforts to have a pickup truck made mostly of aluminum by late 2018. gm is under pressure from federal fuel efficiency standards and rival ford. the automaker recently launched a contract to supply the metal. net lex shakes off the sting of its price i. the consumer satisfaction rating has soared to a three-year high. rating saw aion price hike back in 2011. it's all about "house of cards." "aren'tld not get into is the new black." >> coming up, we have been talking about 25 people killed in the ukraine and that's a live shot in the square in kiev. you have protesters on one side of the flames and police on the other. we will be joined by ian bremmer founder of the eurasia group coming up on " bloomberg surveillance," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com. ♪ up, hank greenberg, the man who ran aig is now chairman and ceo of starr international emil joined that he "in the loop" at 8:00 a.m. >> go

the peugeot family will meet to see if they will give their blessing to the recapitalization of the family. that's needed if they're going to take direct stakes as planned. the stock up just about 1%. puig is down 3/4%. it will take a write down reducing the value of the turbo maker's value sheet to just over 3 billion our ross. check in on the currency markets today. stirling, big move last week. up near three-year highs on stirling. 16762. a basket of currency. have minutes coming out, inflation data tomorrow, producer. it's going up. it's going up because they think inflation is going up. if you reduce inflationary pressures, it makes it less likely. dollar/yen, 101.82. kind of where we finished last week. europe dollar ticking higher to 1.37. that's where we stand right now here in europe. i mentioned that japanese data, how is that going down in asia? let's get more about that. sixuan is with us. >> there's disappointing private consumption. markets are now, in fact, expect the b.o.j. to hold firm to its current plan in the policy meeting that ends tomorrow. the nikkei did end higher

. >>> the french car company -- help me out there -- >> peugeot. >> -- announced it will sell the firstwith new system that runs on compressed air. the company claims the car, which will run on air, mostly for city driving, could cut gas costs by as much as 80%. and by 2020 the cars could, averaging 117 miles a gallon. >> wow. >>> a couple of animal stories here. including a tiger taken for a walk. this is near lockport, illinois, near chicago. the guy who owns the tiger owns several exotic animals, including a wolf and bear. took the tiger out for a walk sunday evening. both were in uncle richie's bar, sam bar where the tiger on reportedly bit a woman in december but she never reported it. the owner has several misdemeanors. hello. >>> something on the lighter side here, starring a couple of pit bulls. say hello to willis on the left and bumper on the right. >> they were seated in a photo booth when it seems like bumper sticks his tongue out at willis. but really, going to give her a lick or kiss. >> both dogs are happy. look at the smiles. perfect look back at the camera and smile big