rosneft needs it.hat together and the medium term risk is not insignificant. >> it does look like sanctions are coming. they all were on a video conference yesterday. saying they have to do something. exactly what. we should expect sanctions from the european union today. we heard that the united states is likely to announce sanctions after that. in terms of blow back, i think b.p. is a perfect example of the blowback you can get. first off there is the issue of dudley's master plan is getting -- to russia's resources. one of the ideas is to exploit shale deposits in russia. if they restrict the technology needed to access shale in russia, that is something they are seriously looking at doing today, obviously that hurts rosneft and b.p. the second thing and this is another serious discussion underway today. if the e.u. moves to restrict rosneft's access to the european capital markets as the united states has already done that, raises the cost of borrowing for rosneft. then it could get much, much mess

sanctions have been imposed this week against major russian companies russia's biggest oil producer rosneft along with gazprom bank are among those targeted just to give you an idea of the scale of these companies gazprom bank is the country's third largest bank it finances some of russia's most prominent energy projects rosneft is a vital contributor to the state budget generating over one hundred billion dollars in revenue these two along with several other firms and are forbidden from borrowing money on u.s. markets for periods longer than ninety days and here is how the russian president reacted to the move. as far as sanctions are concerned they usually have a boomerang effect like i've said before and they will eventually lead russian u.s. relations to a dead end to damaging them severely i'm also positive that these measures harm america's long term strategic interests and the interests of its people. we earlier spoke to the editor of business new europe magazine benares he explained to us how the new sanctions could affect russia's economy they seem to be very targeted at a few comp

who has 20% stake in rosneft saw a drop in the shares. what specifically is president putin saying so far? we may learn in a couple of hours, max. >> you mentioned b.p., a british based company. there's a great deal of concern in the financial sector here in london about the huge amount of business, particularly banking, for example, done here, and they worry that they'll be a response from moscow to further damage business in london. london is one of the capitols that is going to be affected. do you think russia will respond with its own sanctions? >> there have been all sorts of rumors, $500 billion between russia and the european union. there is scope for russia to try to inflict some damage back towards europe, but precisely what it will choose to target, the united states, europe, japan have used so far sanctions that are graduated and escalated and not hitting for example, the current sale of two warships by france to russia. it's only new, if you will, contracts that would be affected. it's not affecting gas, the gas sector. 30 to

equity markets shares of rosneft declined as much as four point six percent in moscow wednesday while nova tech fell as much as nine percent late in trading on thursday markets were down crude and gold were up and the ten year was down eight point three basis points to two forty five five now the cit situation is changing by the minute and artie's news team is keeping us up to date with all of the latest developments so stay tuned immediately after boom bust for the latest details. with. one of the major subjects that we address your own boom bust with understanding the effects of federal reserve policy and our two next guests today are looking at how monetary policy simply isn't generating healthy economic activity first of jim bruce the brains behind the documentary money for nothing inside the federal reserve says one of the biggest problems with quantitative easing is that it actually benefits the rich so i first asked him to tell me who benefits the most from quantitative easing and who benefits the least. here's what he had to say. you know there are some interesting comments in

has already put sanctions on rosneft's executive. salest says russian car could fall further because of sales -- russian economic weakness. they say sales could weaken further. renault and nissan is exposed to russia through a majority stake in russia's biggest carmaker. abreast of allu developments. when it comes to sanctions, the top line is the united states has followed suit after the european union, slapping new sanctions on russia. we will keep an ete on tat -- eye on that for you. time is running out for argentina to avoid what could be a costly default. negotiations are taking place in new york. a group of bondholders once -- wants argentina to pay them about $1.5 billion. they have refused write-downs of argentine debts, like many other investors. argentina defaulted on debt in 2001. a closer look on how the new default could compare to the 113 years ago. >> argentinians are still not over the crisis that hit them in 2001-2002. the country default it on debts of $100 billion. its economy crashed. recession deepens, millions

bp owns a 20% stake in rosneft. they do a lot of business together with exxon.is one to watch for sure. inatek is another company the energy sector. novatek was down more than 7.5% this morning. another company to watch. we started this conversation by talking about brings. banks the sanctioned along with gazstrombank. bank.s a state of element he gets most of its money from the russian government, but it has its hand in nearly every deal in russia. so this is going to have long legs, long arms in terms of its consequences for the russian financial system. we heard the ceo of russia's second-largest bank who said in australia said that the sanctions that the united states introduce could destabilize the russian financial system. >> tell us what exactly this name. theset it means is companies are shut out of american capital markets. they cannot go to the debt or equity markets for anything but the smallest of maturity when it comes to debt. mean,t it does not distinction from other sessions we have seen is that you cannot own the stock. these are american sancti

these are rosneft along with gas problem buying are among those targeted just to give you an idea of the scale all of these companies will face the country's third largest bank its finances some of russia's most prominent energy projects well rosneft is a vital contributor to the state budget generating over one hundred billion dollars in revenue and nearly these two along with several other firms are not forbidden from borrowing money on u.s. markets for periods longer the ninety days the russian president vladimir putin just made some official comments on the malaysia air waves plane crash in eastern ukraine calling for the tragedy not to be politicized he also said that international experts on the scene should be able to carry out their work in complete safety. so you still trust me to get him so which isn't because it is actually a tragic event and that to place in the airspace over the net i would like to see what it is once again we can go to how we in russia what's our position on the swing of that situation when you crane what we have called more than once all the parties in

also affected our two large energy companies, rosneft and novatek.ladimir putin said the move would cause damage to u.s.-russian relations. washington has urged european union to follow suit. its previous sanctions had been criticized as too weak. largely consisting of travel bans. eu sanctions. ourouglas has joined us, international affairs analyst. important information out of ukraine. has just been shot down by russian military. that is according to kiev. what is the latest, what can you tell us, how dangerous could this be? >> we've been saying this four days. two countries, russia and ukraine, are in a state of war. one country, russia, is denying that there is anything going on. what happened, you have ukrainian officials basically saying that a rocket missile ukrainianet, a fighter jet, it was struck and shot down. the pilot was able to eject. he is safe according to ukrainian officials. this,ill lend credence to ukraine has been claiming for weeks that russia is essentially behind a series of frequent attacks on its own troops who are battlin

rosneft has been sanctioned. rosneft is not just russia's largest oil company, it is the world's largest quickly traded oil company. bp has got a 20% stake. its gdr's fell by 5%> novatek, russia's largest independent gas producer. shares traded here in london and fell by more than seven percent. promm which that gaz is the world's largest gas producer that provides europe was not of its gas session. perhaps the u.s. decided maybe that would be too much for the european union. then we have got the financial sector. bank, russia's third-largest lender sanctions. another bank you do not hear about very often. the country state development bank. it is everywhere. in on almost every deal. affecting it could have real problems for the entire russian financial sector which is exactly what we heard from the ceo of russia's second-largest they called btb who said this could harm russia's financial system. they are really ratcheting up the pressure. inwhat do sanctions mean terms of doing business with these businesses? ar

have been imposed this week against major russian companies russia's biggest oil producer that is rosneft along with gas problem buying are among those targeted just to give you an idea of the scale all of these companies will probably bank is the country's third largest bank its finances some of russia's most prominent energy projects well rosneft is a vital contributor to the state budget generating over one hundred billion dollars in revenue these two along with several other firms are not forbidden from borrowing money on u.s. markets for periods longer the ninety days. the russian president vladimir putin just made some official comments on the malaysia are always playing trash in eastern ukraine calling for the tragedy not to be politicized he also said that international experts on the scene should be able to carry out their work in complete safety. reasons wrestling with their huge game so we didn't even thought it was actually a threat to them and that to place in the airspace i would like to see what is once again we could.

but the sanctions as they are at the moment means they can trade with rosner can do business with rosneft so in theory the project can go ahead in terms of the. financial impact upon russia. i mean there's obviously what u.s. would like to do here is they want to punish russia and they want to suffer big financial loss if you think long term not actually help but there's no investment going into russia either domestic or foreign and that's really doing a lot of damage because russia needs that investment to recover to grow and with this uncertainty this is happens for certainty that's been created that's stopping the investment and until that passes russia will be suffering badly because of lack of investment and can't get back on you and you know like you said the effectiveness of these current sanctions because people are afraid there might be more coming do you think we'll see them and if so when. i don't know when but. yes i mean this certainly on the cards to say that the significance of these sanctions is you've gone from punishing individuals friends to corporate entities and you'v

which would be the likes of rosneft and novatek. we are getting a live feed on the micex, where looks like we're opening down 1.6%. teamwork.s you have got sanctions institutions in terms of the financial side. you have got no interruption in oil and gas, flow and supplies for the likes of rosneft and novatek. ulson whobank, john pa rash inthe 1998 cars russia, he says that by the end of the year, this market could be down by 10%. bank of america say that this a read this international incident coulding flight 17 provoke actual proper negotiation. so there we go. the micex down 23 points at the moment. russia is opening. let's check on some of those stocks that we looked at yesterday. the micex down 1.6%. the ruble was flat. let's get to our main story. >> of course, we are focusing on the malaysian airliner that was shot down over eastern ukraine. the ukrainian government blamed the attack on pro-russian rebels. deny rebels responsibility. u.s. officials say that it appears a russian-made missile hit the plane. ryan chilcote has al

some say that helped rosneft to become the company it is.they should receive profits from the rosneft. >> they made a statement saying they don't think this will negatively impact their activity or assets. that's the question because shares in moscow stock exchange dropped 2% already today. we'll see. so far, it doesn't really -- it's not year whether they can make their hands to russian assets as of yet. the main production fails in siberia, that's true. >> fascinate a -- fascinating saga. appreciate it. >>> we'll look at the working lives of the next generation and how many are creating whole new careers. we'll start at india. this is changing the way many work and how people get involved in writing blogs for fun. some are managing to make a living from it as long as they choose a topic that gets a big enough audience. >> hey everyone. >> every week they chat with celebrities and ask them pretty much anything. she's not a tv presenter. this isn't a tv show. it's a google hangout, live event to broadcast across the internet and spin off fro

speaking they are sanctions against two large banks and in russia the country's largest oil company, rosneftnd a russian government as well as arms company officials. he u.s. says they are broad, flexible, and potent. >> do these mark a significant escalation from the previous sanctions the united states imposed? >> they're definitely tougher. but the question is will they work? the previous sanctions were designed to send a strong message to president putin to back down and de-escalate. that's the word we keep hearing from the white house. the white house is saying that the previous sanctions did have an impact when it comes to the downgrading of the russian economy but they're clear will not not making enough impact on putin or his ambitions itself the >> has the white house left is -- itself anywhere else to do? -- to go? >> threr not sanctioning the entire russian oil industry, which is something people are saying would really hit them where it hurts. the pgdush pentagon said there are now 12,000 forces at the border and there signifies escalation rather than de-escalation, so, so far, i

another bank called evb, and russia energy companies and novotel and rosneft. they are sanctions limited to access to u.s. capital markets for longer-term debt and equity for bank financing, for example of longer than 90 days but the administration sighs that these are going to be another tough round of sanctions, but it doesn't want to generate any spillover effects on global economy. so, for example the sanctions are not expected to affect property of these companies here or other types of transactions such as rosneft's partnership with exxon to do oil exploration in russia and also would not affect shorter-term financing which is critical to global oil financing, oil transactions, gerri. gerri: peter, i know we've been looking at this for a long type of the country already put in place some sanctions on russia, upping the ante tonight is expected in the press conference coming up. from what i understand, you tell me what your report something telling you, the idea is not to cut off entire sections of the russian economy as so many people called for. >> right

the bank and then lend money to rosneft.nis a russia that has so many crises, the collapse of the soviet union, the collapse of 1998 -- >> do you know which one this is? 1998, clearly an opportunity. >> but many people lost out. entrepreneurial guys did well. 1998 seemed to be a game over moment for russia and it was not. the economy is 10 times larger than it was then. 2008, another and the rebound was decent. is something of the western media overstating concerns. the oligarchs have been through much worse than this. >> we will leave it there. charles robinson joining us. we are back in a couple of minutes. ♪ >> time for a quick update on the market. it is a spirited attempt by the equity markets. volatility not as high as we have seen yesterday. a little bit of a drop in volatility. equities just bouncing ever so slightly. the conversation that we have just had here talking about the oligarchs in russia having gone through a much worse time than this. remains to be seen what europe actually does. looking at the currency,

the sanctions against russian companies will affect rosneft.e the one 100, not bridging that -- all-time high. >> thinking -- thank you. we are watching novartis as well. stay with us. ♪ >> welcome to "on the move." we are just moments away from the start of european equity trading. investors digest intensified sanctions against russia. the agenda.on with me is ryan chilcote, caroline hyde, and hans nichols. >> the eu and u.s. ratcheting up those sanctions against russia. this time going after some of the country's biggest companies. we will dig into this much more deeply later in the show. >> i'm talking tv. i-tv to be precise because shares are set to rise. the maker of the hits like "x factor." a steak was bought by liberty global from b-sky-b. warnntury foxx eyeing time er. m&a is really hot. will be talking mercedes and their pet to bet on cities and doubling down on small cars. they have reintroduced their smart bread, a four-door and the two-door model. they are small, sleek, and fast. anna, you get to pick the color. >> hans, thank you

rosneft, which enjoyed low cost of debt around likely needany will some refinancing going forward.he cost for the company will increase. >> do you think that means the projects that were previously viable at ae not higher cost of financing? depends one, so much the rates applied by the oil companies themselves. certainly, the higher the cost, the lower the revenue. it is so much dependent on tax concessions which have been provided to a number of projects. if the government does not change those tax concessions, it would not be so harmful as the higher cost of debt. element of all this. as you indicated, russia needs technology to develop many of the prospect that exist. is it inconceivable that russia will retaliate when it comes to sanctions in the form of nationalization of certain projects? probablyk it would be the least likely scenario of the new round of economic war against the western world. i do hold that it will never happen. at the same time, dependence on western technology is pretty obvious, especially in the case of arctic offshore drilling. willis why i think russia

to know that a large russian companies are already coming to the brazilian market as you just saw rosneft has signed an agreement which is to. day and invested in. development of the base and we also have a mechanical engineering in russian companies coming to brazil setting up here to produce equipment for power plants and other companies just want to share. in this data for we have in there so cooperation in the car production in. aircraft production russia supplies the. concern with titanium parts russia's brazil's market although have set up production at play and in russia there's an increased number of high tech you can join projects russian pharmaceutical company your gut russia. will. be unique by you take.

its response will be made in a car and sensible manner unlike actions of washington or the head of rosneft one of the companies hit by u.s. sanctions says that its american shareholders will be among those who suffer berty adverse nafta will continue working with its u.s. partners as normal my colleague share skating pilbeam the host of artie's venture capital and what impact the sanctions could have on russia. the moment it's the russian companies are being impacted and that's exactly why these sanctions have been imposed and it's the big major blue chip companies now why they're being important it is because they can access the u.s. financial markets at the moment in other words the u.s. dollar and that is crucial for international trade and that's what a lot of these russian companies rely upon because you what about the russian markets themselves how are they reacting today we'll have a look at least see how the my six has performed today in early trading the initial impact was a slump as can be expected just here you can see we did have some resilience demonstrated immediately after t

well i think in terms of the energy sector there's going to be much impact rosneft is one of the companies it's on the u.s. sanctions list and they are barred from from getting financing from american banks but they already have a lot of financing in place with china and some deals are done previously to get financing in the loan for oil system so in that respect they're not going to be affected the banks two won't necessarily be hurt by by the e.u. measures the bigger factor for russia in this is long term i think in the oil sector they're being bombed an hour from receiving technology from e.u. companies and countries and down the line further down the line that could definitely have an impact on russia's ability to maintain its energy sector to maintain its oil and gas production at current levels but in the short term i don't think there's going to be necessarily any impact on russia and its trading with. from this this set of measures. ok another interesting element to this i think that the new measures they've got an expiry date i mean you'd almost feels like ok we want to hurt russi

foreign investor in russia and with an almost twenty percent stake in russia's biggest oil company rosneft these sanctions will undoubtably hurt them meanwhile the european commission said that these measures are likely to cut zero point three percent of g.d.p. off of use economic growth this year and zero point four percent next year even if the crisis is contained and without a serious disruption of energy supplies now russia's finance minister sergei lavrov has said that russia plans have no tit for tat reprisals however according to the telegraph russia's parliament is already drawing up legislation to blacklist aggressor countries specifically specifically targeting authors and consultants which includes companies like deloitte ernst and young boston consulting and mckinsey. now this would trigger bonding covenant clauses that rely on external audit's which could provoke brutal brutal market reactions now as for the u.s. companies like. exxon mobil and how the burden went up taking a hit as well tuesday's sanctions basically reduce access to some of the world's largest energy companie

sanctions as they are at the moment means that exxon can trade with ross and they can do business with rosneft so in theory the project can go ahead but this is i'm talking about the psychological problems because certainly there's a huge question mark over all of that deal which will cost america more than it's going to cost russia in terms of most business versus the cost of the sanctions it sounds like one of the biggest kind of results of the sanctions is the panic which we have seen very short term in the markets rubles not phone to well as a direct consequence do you think that's going to continue for all the time they've brought us the sanctions and. it's of sold off and then there's a day or two where everyone assesses it and goes through the details and then they sort of recover and if you if you look at the crimea crisis when russia annexed crimea market sort of heavily in the meantime it's made back all the losses from that we're back you know where we were at the beginning despite an accession of crimea i think the same thing is going to happen again after this because when you dri

>> you saw the biggest oil rosneft andussia ro, gazprombank. it is the state-owned development tank area dear had a defense contractors, the maker of the iconic caustic of rifle. just as interesting is who was .ot sanctioned, gazprom the supplier for 30% of the natural gas that europe depends on then this is a concession to prevent europeans from being left in the cold and dark this winter if there was any kind of retaliation. >> the strategy behind the regime, what is a question mark >> the plan is to squeeze the cronies, the oligarchs who makes the russian economy work and turn the economy into something assets and you see already that the market has reacted. launching- ruvell is to a six-week low and the spillovers have been widespread. the yield increased 90 basis points. the yield even on the five year bond on spare bank which was not sanction increased 60 points. comingsanctions might be down the line. >> the plane disaster, the policy onu.s. or eu ukraine, do we have a sense of what that might be? >> the first step is outrage and sorrow.

. -- rosneft. and the standoff with moscow could lead to a spiral of the sanctions.remains committed to russia. and the fighting in gaza intensifies. the leader of hamas says the conflict will not end until the world stands up to israel. ♪ >> good morning, everybody. you are watching "the pulse."

sanctions as they are at the moment means that exxon can trade with ross and it can do business with rosneft so in theory the project can go ahead in terms of the find. actually impact upon russia. i mean obviously what u.s. would like to do here is they want to punish russia and they want to suffer big financial loss if you think long term that'll actually happen there's no investment going into russia either domestic or foreign. really doing a lot of damage because russia needs that investment to recover to grow and with this uncertainty this is atmosphere uncertainty that's been created that's stopping the investment and until that passes russia will be suffering badly because of lack of investment banking and you know what you said the effectiveness of these current sanctions because people are afraid there might be more coming do you think we'll see them if so when. i don't know when but. yes i mean this certainly on the cards to say that the significance of these sanctions is you've gone from punishing individuals friends to corporate entities and you've used a financial mechanism and

the sanctions target leading energy firms including the oil giant rosneft as well as novatek and financialcluding the two largest banks. the sanctions target some russian arms suppliers including gun maker. eu will expand the scope of their russian sanctions. they haven't yet named specific companies. so good to talk to you. let's start off talking about the sanctions. what kind of impact are we going to see from sanctions on russia, business and russian economy? >> well many the first place, these are targeted sanctions. they're still targeting individual companies rather than broad sanctions we have been talking about in recent weeks. they will affect the individual companies. they will effectively access credit in the united states over 90 days. it has wider implications for russian economy. through the indirect effect of these sanctions which are effectively challenged the confidence which is already shaken in the russian markets. we've seen today in the markets. >> those are the two key points. access to credit so important for russia business also confidence to invest in russia from

bp has a 20% stake in russian energy giant rosneft. nissan reports a rise in profits.a 13.45% jump from a year ago. the strong rise helped the japanese auto maker off set slowing domestic sales. >>> lots going on. tweet me and i'll tweet you back. world business report in 45 minutes time. going back to montreal and talk about the important meeting taking place today. >> looking forward to it. thanks. >>> still to come, remember her? she's back this the spotlight making news. former republican vise presidential candidate sarah palin launches her own news channel. (vo) ours is a world of passengers. the red-eyes. (daughter) i'm really tired. (vo) the transfers. well, that's kid number three. (vo) the co-pilots. all sitting... ...trusting... ...waiting... ...for a safe arrival. introducing the all-new subaru legacy. designed to help the driver in you... ...care for the passenger in them. the subaru legacy. it's not just a sedan. it's a subaru. ina bite size new ways. to enjoy the full size sensation of peppermint and rich dark chocolate. new, york minis, get the sensation

the list including the oil giant rosneft and leading financial institutions.es russian arms suppliers and five individuals including the russian intelligence officer from the fsb. president obama explain what is he wants russia to do now. >> i made it clear russia must halt the flow of weapons and fighters across the border into ukraine, russia must urge separatists to release hostages and support a cease fire. russia needs to support internationally mediated talks and agree to monitors on the border. >> the separatists and government forces fight on. eu backed u.s. sanctions with its own and says details will poll. russia has shown no sign to vowing to western pressure. president putin says this puts relations at a dead end. >>> australia's senate voted to scrap the country's tax on car box emissions. this is one of the main priorities of the prime minister abbott many many the course of last year's campaign. australia is one of the world's biggest emitters per capita. critics say this is something of a backwards step. mr. abbott said it's a destructive tax.

companies from doing business with companies like rosneft.ally just limit the ability of russian companies to do long-term, more than 90-day financing. more like technical sanctions so far. the, the shooting down of the airliner may change that but the sanctions so far really haven't had the kind of bite that the obama administration actually suggested. and certainly the europeans are even less likely time little meant harsh sanctions given their natural gas dependence upon russia. david: a couple of funds you look at to give you an idea how the russian market is doing generally. i know you go to specific companies as well. rusl is daily russia three times. it is really aggressive belief in the russian market. that has -- here we go. this is intraday. let's look at longer period because it has come way down off the highs. the old motto. you do want to buy low. is that why you're saying russia is a buy right now because people factored in the bad news and not enough of good news? >> you know, in short i think you summarized it very well. back

rosneft is moving into the gas territory. novatek is there. they have all very close associations with putin. if anything i think putin is a little bit fed up with the dysfunctionality of gazprom. so point one. point two, gazprom says, well, if you don't want to have our gas we'll give it over to the asian side and walk off from europe and horrible things will happen. well, if you take a look at the asian theater, it is heavily subscribed by qatar, australia, potentially western coast of canada, if the u.s. gets its act together, ourselves. the idea that the russians simply shift their gas over to the east, or that this deal with china has all of the price issues resolved, you notice the one thing that was kept secret was pricing. and i think it must be pretty obvious to us why that is because chinese are not going to pay the russians the kind of prices that the ukrainians or anybody else have paid. that's ridiculous. so the room for manuever of gazprom i think has always been overstated in the debate and the degree of competition over gas con

the exxonmobil/rosneft deal is the largest if it would go through with the $5 billion it had planned.ussia needs that technology for that to go forward. if that gets slowed down because of the sanctions that will have real costs but over time, not immediately. >> it's interesting to see that while there are direct sanctions on oil issues, there are not direct sanctions on gas. i wonder with that carve-out for that very important economic issue, if you think that what europe has done outside of the gas issue is an important uptick for them. they've been seen to be a little shyer about sanctions than president obama has. >> it most certainly is an uptick. in fact, i was reading memoirs. it was interesting to hear the sound bites you started your show with with reagan and gorbachev. i look at what the united states did after the crackdown on solidarity in poland. there was big debate between the european union and the united states over pipeline building. they were lesser sanctions than the one we saw today. so that gives you a comparative of how serious this is that says, you're right,

rosneft is moving into the gas territory. novatek is there.they have all very close associations with putin. if anything i think putin is a little bit fed up with the dysfunctionality of gazprom. so point one. point two, gazprom says, well, if you don't want to have our gas we'll give it over to the asian side and walk off from europe and horrible things will happen. well, if you take a look at the asian theater, it is heavily subscribed by qatar, australia, potentially western coast of canada, if the u.s. gets its act together, ourselves. the idea that the russians simply shift their gas over to the east, or that this deal with china has all of the price issues resolved, you notice the one thing that was kept secret was pricing. and i think it must be pretty obvious to us why that is because chinese are not going to pay the russians the kind of prices that the ukrainians or anybody else have paid. that's ridiculous. so the room for manuever of gazprom i think has always been overstated in the debate and the degree of competition over gas cont

imposed sanctions on russian banks, military, and energy companies including the largest company rosnefttns injured after being by israeli tank fire. john kerry is in cairo. says.s. secretary of state more must be done to protect the lives of noncombatants. country would stand by while rockets are attacking it and tunnels are doug to come into your country and to sell your people. but always in any kind of conflict there is a concern about civilians. to declarea is set an official president. this after leading the count. neck.showed them neck and police and politicians calling for calm. are getting those numbers from publicis. euros.illion up 5% if you are stripping out currency effects. up 0.2% if you are factoring into account the strength of the euro. they are saying that there were cancellations. the second quarter has not lived up to expectations. they are not satisfactory but a company's own standards. count -- there is a pick up in revenue but emerging countries are saying they are sayinged about the -- that they are extremely cautious about [indiscernible] merger withmake a omnic

russia state oil company rosneft has been very supportive of the development of unconventional oil resources in russia and it has team up with exxonmobil. in may it teamed up with bp on a pilot project in the volga, urals, exxonmobil is in siberia. u.s. energy information estimated that russia's technically recoverable shale resources are 75 billion barrels of oil. the largest in the world, the u.s. ranks second. so in a sense, there's this energy competition between the u.s. and russia but for russia energy is also a lifeline for its economy. now that bring us backs to one of the subjects of today. given its proximity to russia, the e.u. has developed direct oil and gas pipeline links to its eastern neighbor. the level of russian dependence varies by countries in the e.u. but if you see which countries are most dependent on russian gas, it would be germany number one, is the largest importer from gazprom. there is austria and countries of eastern central europe are very dependent on russian gas. when you think about the new pipeline talked about for russia, which would be involving ukraine

for example, we're not preventing rosneft from access to the u.s. baunking system for short-term loans. this is what i'm told. >> that's correct. >> but hints at what sectoral sanctions could look at. and europe will support some of this anyway with respect to the ebrd, the european bank for reconstruction and development. and the european investment bank. and if europe goes there and apparently we think it's likely that europe will go there with respect to its own sanctions, this will reinforce a strong message to putin. again, we don't know what putin's role was in this horror a few hours ago in ukraine. but the fact that we are imposing greater for the mischief that they are imposing should, it seems to me, help us get to a better place with russia and with europe. >> and before i let you go, jane harman, you were one of the election observers. what is poroshenko's hold right now? he is facing a major tragedy whether this was a shootdown or not. he has a real crisis on his hands as a new leader. what is his political grasp and the government's gr

i wonder if they will comment on their investment with russ smit -- with rosneft. >> beginning a new project in the kara sea. >> they might have problems getting the equipment. >> european sanctions for the european companies from sending it. >> i think the first "x-files" series was shot there. >> after the bell, lincoln, tesla, gopro. john kerry in india. >> this is showing the flag and repairing the relationship with mr. modi. an important trip away from all the other major challenges. is that the morning brief? day.en at fed day and jobs stocks, bonds, currencies, commodities -- futures -13. -98.utures euro under 1.34, and a lot of people have been hoping for a weaker euro. american crude oil under $100 a barrel. , will ithe angst, vix open near 14? yen, 102.82. we scoured the papers, here is a scarlet with the front page. time running out, it ran out, for argentina. standard & poor's says the country is in selective default, missing a deadline yesterday to pay 500 $39 million in interest. the question is whether holders will9 billion in bonds demand repayment. this is a small gr

rosneft is lower by .25%. they have been trading lower after the newspaper reported moscow must pay $50 billion for extrorpuating the assets of the defunct producer youkas. the low cost carrier upped its profit guidance to between 620 and 650 million euros in the year march 2015. you can see right now ryanair is up just shy of 4%. tnt express is down 5.5%. the restructuring process has improved results for them in the fourth quarter. a they say the outlook strategy is on track reducing 330 million euros in loss for the quarter. the company proposed the firarm suit calls to have a separate listing. you can see banka is up to 432 million euros. that set the net interest for lende lenders up 31% on a year ago. we'll have a look at the foreign exchange markets with the dollar expected to remain right now with the dollar index at six-month highs with plenty of data to come for gdp and the second quarter. we have the fed and the payroll. a lot to focus on. euro dollar trading at 134.33 right now. it's taking up prev

sanctions on russian energy companies including rosneft. to zurich now.suisse shares under pressure this morning as the bank posted its biggest quarterly loss since 2008. remember, they paid $2.6 billion to settle a u.s. tax investigation. manus cranny sat down with chief executive brady dougan and started by asking him about the size of the fine, which is enormous, actually surprised him. >> obviously this has been a very long running issue for us. these are events that happened a long time ago. we spent a lot of time fixing this business and cleaning it up and spent a lot of time actually working through the resolution. i think that was long sweep of time for an issue like this. i think we ended up -- obviously as you say, it was a very significant fine. most importantly for us is getting it behind us, something very, very important for us as a business. obviously this is our biggest litigation or regulatory problem out there. >> it is about you, your tenure at the bank. it calls you the teflon man. in other words, you as the c.e.o., you're still standi