that is the russian prime minister, dmitry medvedev and ryan chilcote at 5:00 london time. as ryan was saying, vladimir putin is in shanghai today. the top of the jet is a contract to supply natural gas to china. the deal could be worth close to $400 billion. let's talk to stephen engle who is in beijing. do we have a deal yet, stephen? >> we don't have a deal yet that we know of. we have been waiting for some headlines to cross from their meeting. it was originally open to pool reporters, then it was hastily canceled. the pool -- they must really be hammering out price for this deal. i assume. this is a pipeline deal that has been stalled many times over 10 years overpriced. anin has told chinese media interview that was published yesterday here in china that the " nearly finished." bigprofile and china is a one. gazprom aims to sign that contract with china national petroleum during this visit, if not even this afternoon. the deal is valued at $400 billion over the proposed 30 years. a $22 billionuild pipeline to china to carry as much as 38 alien cubic meters annually. of

ryan chilcote sat down with .ergei lavrov listen to what mr.ukraine. >> the ukrainians -- i think this is as close to a civil as you can get. >> that is the headline picked up worldwide. this is a profound interview. word, exclusive but this was the real deal about this story. >> this man was at the forefront of the negotiations of what the entire world is focused on. >> he really stressed in the ukraine -- i don't think anyone in the west is buying this. >> he says russia does not want to send troops anywhere. >> they have 20,000 on the borders. >> my agenda is twofold. is coming out, is there inflation, this is a sign of growth. how do you know about the size two's, tom keane? >> that could be a three-hour show. i will give you that on my agenda, with masons reporting earnings in five minutes. department story is stores may show a gain of one percent versus last year. this was a tough quarter for a lot of retailers. >> you wonder how they will bounce back but i think that there is a lot of optimism. >> because of the april numbers. on our twi

russia has plenty of domestic issues that are weighing things down. >> are thanks to ryan chilcote. the russian car market could shank -- shrink 10%-20%. stay with us. ryan will be joining us shortly with the ceo of the moscow stock exchange. >> the top corporate story. anticipated ipo of zoopla. there was morris caroline hyde. -- here with more is caroline hyde. >> sales up. profit up. daily mail in general trust are managing to cut cost -- and general trust are managing to cut cost. u.s.gely popular in the >> if you want to follow the kardashians, get that app. >> it is also about job hunting, bargain-hunting. it has a groupon type company where you can buy daily deals. selling jobsite. it is trying to focus in on its getting outbut also of jobsite. also, the big one. >> the website you have been on 24 hours a day for the past five months. >> i jumped on the property bandwagon. i'm selling my flat, i am looking for another one. zoopla. they are looking to cash in on the tech storm and the property storm in the united kingdom. this is a company that is worth one billion pounds, ana

ryan chilcote at the saint petersburg economic forum.are back in two. ♪ >> "the pulse" is coming up in about nine minutes time. olivia will be there. i will be there. we are continuing this conversation. >> we are going right back out to the st. petersburg international forum. ryan chilcote has a host of interviews to bring us, including one with the deputy finance minister. it will be interesting to get his perspective read the economy minister said the threat of more sanctions is just like the threat of using nuclear weapons. it is a deterrent and he thinks the u.s. would never actually use them. a big then we have interview just after. >> a big interview with the head of the ifo. we will get his take on what is driving german growth and whether or not he is seeing a divergence from before as we saw the disappointing numbers out of france yesterday. >> i hear you are good with code. >> as of today, i am good with code. i have a surprise for you in the next hour. we will speak to the ceo of code academy. >> and someone has set up a webs

ryan chilcote is at the international economic forum in st. petersburg. you told us yesterday about all the western leaders who chose to skip this main event because of the tensions in ukraine. among those who have decided to show up, what do they want to hear from vladimir putin? naturally, they are looking to hear about things he is intending to do to improve the business climate and business in general. -- of the specific rings things that they all agree as to make conciliatory remarks about ukraine. that very important presidential election is coming up on may 25 and we had the biggest single loss of life yesterday. things are not looking great going into that election. if the election does not go the right way, the eu, the u.s., and germany have said there will be more sanctions on russia. none of the executives here want to see more sanctions. >> what sort of interaction are tin andng between mr. pu the other executives? he has just started talking 10 minutes ago but what he has said is that russia is open for business with all international partner

ryan chilcote.ife after the annexation. >> the trouble are crimea there.with getting the only way is to take this oat across the strait. these russians are entering ukraine.sually as far as they are concerned, this is a domestic crossing. crimeans have been somewhat stuck. a new passport can take weeks. the old ones are not very helpful. the ukrainians are not allowing men between the ages of 18 and 60 into ukraine. even in the cradle of russian orthodoxy, prices are quoted first in ukrainian money. russian rubles, smaller. golden arches and much more stand deserted. tourists also face obstacles. to visit the place where the allies met in 1945, world war ii buffs must travel to ussia. >> a couple of months ago you could come here without a visa. now that is that it is under moscow's control, not anymore. >> there wasn't any unrest while we were in crimea, but russia is clearly concerned there could be. gathering of the region's uslim minority was banned. russia's newest tourist destination is breath

ryan chilcote joins us for a breakdown on the numbers. ryan?cine, there is one number you need to pay attention to and that is the total number of tv customers they added in the last quarter and that number is 74,000. defying competition from bt which invested heavily and buying rights to show football bearishnd defying expectations from analyst, some of whom thought for the first ld actuallyskyb wou lose tv customers since getting in the pay-tv business 15 years ago. 0 millionpent 90 billion, to buy rights to show champions league games. they spent money to show 38 premier league games. yesterday they said they would give that to their broadband customers for a second year free. existing and new customers. yet, and looks this morning like bskyb is going to give bt a run for its money. fran? >> at the same time, the media space is getting more and more, getting. from the comments we got from bskyb today? >> two things. on the distribution front, we learned off the you can get sky-go and now-tv on your playstation iv. we have not heard that kind

ryan chilcote is on his way. will hear more from that exclusive interview. .ome interesting comments it looks like tensions are easing. troops. ryan was told that the united states and russia are being pulled into a cold war. he stopped short of guaranteeing that russia would not and ask further provinces in the ukraine. we will talk about one of my topics. the most loved brand worldwide, according to some studies. to rbucks is pushing in tea. you do not want to miss that. they cannot get a second airport off the ground. >> iq. see you in 10 minutes. andng up, kick starter indiegogo. cashing in on crowd funding. the details after the break. >> welcome back. i am mark vartan. barton.n -- fundedarter has projects. elliott gotkine reports that it is not just the fundraisers that are cashing in. 2,1., kingmaker of kick starter. he makes videos. having him on your team can translate to megabucks. >> we help you get from nothing to a you do not of money. mmount of money. >> one involves a paper airplane and an option fo

ryan chilcote joins us from st. petersburg international economic forum. you've been covering this summit for 20 years, pressure for two decades in the big top line on this is who has decided not to attend. is that a fair way to deliver? i think so. who's not here and why. everything from lisa, goldman and goldman sachs declined to come after the white house said it would be best if they stayed away. it is not just u.s. ceos but european ceos are largely staying away. bankmf, the ifc, the world , they have all declined to come. it's pretty clear there's a message here, a signaled president putin that if he will continue with operations in ukraine that there will be a price, isolation and this is what it looks like. that's not to say that nobody is here. we have some pretty serious involvement. the boss of bp is here. they own 1/5 of their largest oil company. clearly, the attendance is not what the russians would like to have seen. it will be an interesting forum without a doubt. we will look at how companies are na

ryan chilcote is in kiev with more. ryan? >> that's right. the east of the country has definitely intensified. to discuss that and other things going on in the ukraine, i'm joined by the former president of georgia. he served from 2004 to 2013. during which he fought a five-day war with russia. mikheil saakashvili, thank you very much for joining us. i want to start by asking you what you make of the arifle of these chechen volunteer fighters that we have seen in the last 24 hours surface in the city of donetsk? >> it is normally a regular unit of fraction -- russian military intelligence. >> they said they were volunteers. >> some of them behaved like -- but also we had this in georgia where armed chechens were sent by russian special services to fight but basically, certainly this is -- we're talking about no large scale intervention. he border has been diluted and every night, even this night, i heard from my friends, large numbers what i think are russian troops, but russia of course says they are not. we're talking about a military invas

ryan chilcote is in st. petersburg. hans nichols is in berlin.s, a mixed start. >> a little lower through the morning. week, itart of the asked if we could make it a sixth week of gains? 6/10 on theout week. we are not talking big gains, just grinding higher. >> ryan chilcote, you have the -- zeb eckert, you have the story on thailand's coup. the former prime minister being deposed by the military. the question now, what is the future of thailand? the military is in charge. i will have the latest. let's let's get to st. petersburg, to the international economic forum. good morning. president putin will address these attendees later today. is right. the russian president president will address investors 3.5 hours am now ahead of the presidential election in ukraine on sunday and the prospect of more sanctions next week from the eu and you knighted states. we

we are joined by ryan chilcote and hans nichols. raine and russia. >> the eu foreign ministers gathered today in brussels. the question is whether they will tighten the sanctions and russia. the expectations as they will, they will specifically sanction some russian companies -- something they have yet to do. sanctioned russian companies but europeans have limited themselves to individual so far. but going after russian companies that they believe have expropriated crimean asset. interesting to see what happened today in eastern ukraine but a yes vote in the referendum have any influence. these sanctions were planned well before the vote. socgen saysst from he does not think the ukrainian crisis is going to escalate. assessment and the people you have been speaking to? >> that is not my assessment but it does appear to be investor sentiment. the market open flat today on the back of those results. yesterday the russian stock market was in fact up, best we can something like 10 months. having said that, the market is heavily discounte

ryan chilcote is in kiev with the details. with former georgian president saakashvili and he says the russian military is directly responsible for the violence. what is your understanding? is their sense of the russian armies to rectally responsible for stoking violence? that is definitely the ukrainian line. we have seen a step up in the violence and military operations , both the ukrainian government side and the sec -- and the separatist side. ground troops but thick swing aircraft and helicopter gunships since this morning. in their efforts to retake the donetsk airport, but also in the center of donetsk and in other places. really upping their game when it comes to the military commitment to the fighting. a heartening of wills as well on the separatist side. pro russian fighters joining the separatist in east of ukraine from russia itself. some of those fighters describing themselves as chechen volunteers. important point there is, they're describing themselves as irregulars, not part of the russian military and not part

a warning from dmitry medvedev, he told ryan chilcote the u.s. and eu are risking a return to the cold war. he said sanctions against russia are economic warfare. the eu has accused jpmorgan and other banks of colluding to rig interbank lending rates. agricole weret also accused. taking on the ipad. microsoft is going to take on the ipad mini. satya nadella expected to unveil a smaller version of the today with a qualcomm processor. cory johnson is in new york. if you fail to make an ipad killer, try to make an ipad mini killer? >> go small or go home. microsoft has failed in the marketplace with the surface. the push of a push of a push and are trying to the corporate deals and big sales in a large institution. they are spending a fortune on marketing and getting this out there in the public eye. they are getting product placement and every possible tv show they can get it into. to make it seem like people are using it but in reality people are not. >> fundamentally is it not a good product? >> one of the things we see havening is market leaders

it is called the ryan chilcote index.you see him on your tv, you know russia and the ukraine matters. does it matter to markets right now? not quite. we are driving hard on the borders for the fourth straight week. .3% on the dax in frankfurt as well. the big news is what will the ecb do next? the big one is this trade right here. the euro-dollar, a catalyst for news flow. if mario draghi chooses to do anything next month, what will it be and can drive this one any lower us to mark peter both finger thinks -- bowfinger thinks it is not lower. he is the advisor to angela merkel, saying that the ecb should go swiss. .ush the euro lower really? is that going to happen? probably not. that to defendid the ecb's independence, you have got to say that peter was not listening. >> nice and intense. thank you. we will be back in a couple of minutes after this short break. ♪ quarks welcome back to "the pulse." i'm mark barton. >> and i'm caroline hyde. the referendum organized by pro-russian groups in parts of eastern ukraine. europ

ukraine, ryane chilcote spoke exclusively to the former georgian president about the crisis.is normally a regular of russian army military intelligence. >> they said they were volunteers. >> they looked like them and behave like them, but armed for a proxye sent war. certainly we are talking about no large-scale invasion. , iry night, even this night heard from our friends in the think whaternment, i are russian troops and looks like russian troops. we are talking about military invasion. let's not fool ourselves. >> this is a military invasion by russia, then. >> what else would you call it? they are behaving like professionals, killing lots of people. i think they're preparing to expel ukrainian troops from those two areas. it looks like it. there will be a tough challenge and a tough fight. >> you have met president routine before -- president your countrywhen was at odds with moscow. will you recommend to him going into that meeting? poroshenko who is certainly moderate and a reasonable guy, sort it outwant to without western help. rush is pretty weak. has a strong putin

going to head over to ukraine now. >> ryan chilcote is standing by with a special guest, ryan?hat's right, we're joined by the foreign minister of ukraine. thank you very much for joining us. i want to start by asking, the exit holes we have seen, the shows mr.ote thus far his wayroshenko is on to victory. how does that strengthen ukraine's hand in talks with russia, if at all? >> we're confident that our campaign is over. the president of ukraine is elected and elected by people of ukraine. it gives him more legitimacy. i think this is a very good momentum for russia to reestablish relations with ukraine. and recognize the results of the election and recognize ukrainian president. so far, they were saying that ukraine doesn't have legitimate powers. we have now. andas proven by the voters it was proven by the international organizations and it was proven by the statement made already by the foreign countries. >> have you seen any signs of support from russia since the election last night? a phone call, perhaps? that petrotions poroshenko might sit down with president putin som

ryan chilcote joins us from moscow. ryan, it has been 10 years in the making.ill this change vladimir putin's reputation in russia? >> i do not know that the russian people think too much about the stuff, but it certainly gives them wiggle room with the western europeans and the west. it allows them to kind of send the message that hey, if you do know to do business with us, we will find other partners. >> i like in your reports it to london this morning how you talk about the trust factor. who trusts who less? >> the russians have been very anxious about dealing with the chinese. they are very concerned about getting taken advantage of, and that was one of the big issues -- price, which we still do not know what the price was because the chinese were looking for a much lower price than the russians wanted to sell a, perhaps a lower price than what russia is selling to western europe out. the other thing is, the rest of the general are just concerned about opening up to the chinese. if you think about the east of the country, there are about as many people in t

the biggest meeting of russian leaders is happening and ryan chilcote is with us.tory is who was not there which are american financial leaders. how much have they messed? -- missed? missed moremore than they have missed. among the no-shows you've got everybody from the ceos from goldman sachs to visa and mastercard and everybody that was supposed to come from the u.s.. the white house told caterpillar to stay away and they have. a lot of the european ceos have stayed away as well and some of the international organizations like the ifc. a clear message being sent to president vladimir putin that if he goes further in ukraine there will be isolation and this is what it looks like. >> what is the goal of the meeting? >> i think president vladimir putin wants to come here tomorrow to say that the ceos that have not come to this meeting, we are not going to penalize you are punish you. we don't think what your governments have done by rightting you not come is but we would like you to do business in russia. he will try to reassure them there will not be any retaliatio

ryan chilcote doing us the latest on ukraine. it is having an impact on the ruble.mpact is being felt outside russia. a company missed sales and quarter.timates in the david tweed has been following the story. the criticism being leveled at the company's ceo, justified or not justified? maybe it is justified. let's see what happened. the strength of the euro was one of the reasons they missed sales targets and profit targets. they said it was the euro against the ruble that was the main culprit. if you look at the currency neutral performances in each continent and area, they are not doing so well. currency neutral is down 20% in terms of sales. western europe is flat. increased injure many, but flat in the rest of -- increased in but flat and the rest of europe. you can see why union investment , which has one percent invest in adidas said that they do not in ---- have confidence ability to lead the company. has said it is a one-sided analysis. they are worried about nike. a sense.s they are saying adidas it will achieve it's 2014 goals. how will they do that? >> i

my colleague, ryan chilcote conducted the interview. he joins me now from moscow. good evening. >> good evening, mark. the primeminister -- minister and i sat down and he told me that the standoff between russia and the west could lead to another cold war. >> to put it simply, no one is happy about sanctions, since they are always a sign of tense relations. it could cause some unpleasantries for the country, but it is bad for economic relations come up with europe and with the united states. let's be honest, those sanctions are a sharp knife for european business. the only ones who want sanctions are politicians, who used them to reinforce their convictions and demonstrate power. for example, president obama needs to show congress that russiansoesn't see amuck but if anything happens, they can hurt us. the situation is somehow different for europe. >> speaking about president obama, because you were the art -- the author, the architect with president obama about the reset in relations, are you disappointed by how obama has handled this crisis? >> yes, i believe pre

with an exclusive interview with bloomberg's ryan chilcote today, he added that sanctions by the west might not reach the desired effect. >> if the west, just for the sake of revenge is ready to sacrifice its reputation for the -- as a reliable partner for the entire world economy, if the united states is prepared to sacrifice its reputation as the holder of the key reserve currency, then it is up to them to decide. >> let's go to washington, d.c., now and bring in the former u.s. ambassador to ukraine, now the new eurasia center director at the atlantic council. ambassador, thanks for being with us. what do you make of sergey lavrov's comments? >> he has a very difficult job. he has to defend russia against economic sanctions in the face of its aggression in the ukraine. there is not a civil war going on in ukraine. you have a russian-financed and led and supplied insurgency. the united states is responding by sanctioning individual russians and perhaps the russian economy and sending troops. mr. lavrov's job is to try to prevent the west from doing that. >> explain if you can russia

ryan chilcote joining me in the studio. let's go to portugal now. the nation will exit its three-year bailout program without a credit line. portugal will not need further help from its bailout lenders. ferro joins us now the details. >> it is just three years after that bailout. line,caution or credit clearly confidence in portugal's own abilities. are is where portuguese when costs are on a 10 year yield right now. 3.6%. this is a level we have not seen in some eight years. that is some turnaround. the question i've been asking the confidence justified? what is the cause of these yields being down here? it is the bets on the europe turnaround? or is it the search for yields that have come to somewhat overextended levels. what does that mean as we go forward? is it a false sense of security? politics, it me for jon? >> is good news. we can all celebrate and pop the champagne, can't we? the fiscally conservative germans can say this is good. to see the problem? look at the debt challenges for the likes of portugal. borrowing costs at an eight year l

we are joined by ryan chilcote. you have been drinking in the numbers.ide, if you look at carlsberg, they have a tough this is because they are exposed to russia. >> that is right. the stock has been all over the place but it opened down. the reason is they said they are going to make less money than investors thought they were going to make. they warn investors that they're going to make less in the future. russia is the issue. the biggest headline is that they say the russian beer market slowing to slow then -- faster than they were expecting. gest are the second big brewer in ukraine. last year, more than one third of their operating profit from eastern europe. the issue is with the currency depreciation, with the wiki economic backdrop, with all of the turmoil and uncertainty because of the geopolitical situation in ukraine itself, that is what is weighing on them. this is a bet was made a long time ago. it's going poorly for carlsberg. >> they have struggled in the past with russia. it is not like this is something new and they are hitting russia. t

ryan chilcote, lightning kiev. we will bring his exclusive interview with the ukrainian -- the crimean foreign minister. more stories from the election over the weekend. right-leaning parties gained across europe and it is shaking the decision on the european commissioner's president. not everyone may be on with jean-claude's appointment. hans, i read two very different stories. angela merkel on her way in. angela merkel on her way out of this meeting. >> that is angela merkel for you. she is crafty about what her intentions are. that is the big question hanging over these negotiations. what is on glove merkel's true intention? -- on glove merkel -- angela merkel's true intention? decision at the end of june. she backs jean-claude, but she faces challenges from other members of his own party, including the prime minister of hungry. cameron going into the meeting .as talking about juncker did not mention him by name but was also opposed. francois hollande of france has indicated that he could support juncker. ultz,

ryan chilcote joins us on the -- ryan chilcote joins us in the studio. on the phone is henry. >> according to interfax, ukraine has renewed its offensive and there is heavy fighting. eastern andeen in southern ukraine, it can be very confusing, conflicting reports from the two sides. fighting in a city not too far from there. and this is the important thing, edessa in the south of the country. we had that tragic fire where more than 40 people were killed in the fire and the clashes around the fire. yesterday, we had pro russian activists storming a police headquarters, freeing safety seven of their colleagues. they could have taken the police headquarters, but the head of police said they would release these. they were able to avoid -- the police were able to avoid the seizure of their headquarters. clearly, this conflict is now the east, not just in and west, but the south as well. >> let's bring in henry from moscow. a significant escalation. any sense of what the kremlin's view of this is? issued a strongly-worded statement over the weekend. described

for more context, let's bring in ryan chilcote. what are you hearing about the deal? > we have lost the line. we will come back to ryan as soon as we get him. for the moment, let's have a quick peek on what is happening on european markets. >> mixed. by a 10thhe ftse down of one percent. struggling for a significant decisive direction across the benchmark, the federal reserve minutes a little bit later. futures in the u.s. a little bit higher. that is one to watch. talking about the sterling better u.k. retail sales. elsewhere, the dollar yen. it is lower. the yen is higher by a couple of tenths of 1%. the bank of japan does nothing. the bets on extra stimulus, will they hit the 2% inflation target? the yen is stronger. the dollar is weaker. >> in 25 minutes, it is surveillance with tom keene. he joins us with a preview. we are focused on this breaking news. they have signed this deal for a gas supply pipeline worth $400 billion. what are you going to be looking at today? >> we will focus on that and folded into the sunday election in ukraine. to thislly look forward c

ryan chilcote is there as well. to those -- what did those who have shown up look to hear from the president later? >> i think they want to hear that this -- that business is going to be good in russia. i think they realize that the easy way to do that right now is to hear conciliatory comments from the russian president about ukraine. we have ukrainian elections coming up on sunday. the u.s., germany, and the european union have threatened sanctions if they feel that russia has interfered with that election. they are going to be listening for conciliatory language. will they recognize the election? just his tone, in general, on the ukrainian authorities. the last thing that anybody here wants is more sanctions. the address from putin, what else is on today's agenda? >> we are trying to look at russian business from a couple of angles here. we are going to talk to the deputy finance minister here in russia. they have just come out of talks with visa and mastercard. russia and visa and mastercard have been in a confl

. >> ryan chilcote is watching paid tv in the form of b-sky-b. is if big question b-sky-b is in danger of losing its market position in traditional pay-tv. that is what analysts are asking. some expect that today, we may see in the third-quarter b-sky-b actually saw a drop in traditional television subscribers. that's what we're looking for. been nipping at their heels. b-sky-b is opening their books 51 minutes from now and we will have complete coverage. likes just ahead, a closer look at the fed's decision to keep cutting its bond purchases. stay with us. ♪ today's company news. u.s. media company viacom plans to acquire u.k. broadcaster channel five. viacom owns mtv and nickelodeon. they will announce the deal with earnings before the u.s. market opens today. channel five would further their expansionnternational with an english speaking outlet for the u.s. programming. step closer after they stepped away from the deal because it became too expensive. a heated contest means merck and meme more than $14 million on a sale off of the unit. gabban

. >> we will check in with ryan chilcote in a moment. page story isnt pfizer ending its takeover bid for astrazeneca. the $117 billion not enough and astrazeneca says it does not take into account the drug it has its pipeline. there is a three-month cooling-off. before anymore talks can take place. pfizer's are hoping that they can push the deal for next time. fascinating the way the by sideline is up on this. one group was for it on the other group was are you kidding me. price was within 1-2% of breakeven. in other words, you can only pay so much before it's no longer adding to pfizer earnings. outou wonder how this comes if they revisit this. do we have a third story? >> of course, this is about china pushing domestic banks to replace ibm servers with chinese made ones. it's some retaliation after the u.s. charge five military officers with cyber theft. the chinese government is now reviewing whether their reliance on ibm servers compromises the country. >> talking about consultancies and china might be pushed out. there are ramificat

ryan chilcote has been watching this story as the tv landscape changes. the numbers, ryan? >> third is just one number you need to pay attention to, 74,000, that is how many pay-tv subscribers btb -- bskyb added. that defies expectations from the analysts who thought this lose skyrter bskyb may tv customers, may see a drop, which didn't happen. dough andome serious has been somewhat successful in bringing tv customers to its business. billion topent $1.5 get rights to champions league games. there has been an astounding amount of money to get those 38 games per premier season. we still have some pretty good results today from bskyb which is going to give bt a running going forward. >> ryan, thank you so much for all of that. here is what else is on our radar. passengers are facing long delays at several u.k. airports. the glitch on computers caused chaos at heathrow and elsewhere. say engineerses are working nonstop to resolve the problem. >> actor kevin spacey sat down with charlie rose. they spoke about what goes into making the hit series. >> it is so much fun because i

for more on this ryan chilcote is in st. petersburg. tommy the impact of those comments. >> they are important for investors in the room. no one wants more sanctions against russia -- these are people who invest in russia. and the u.s., the eu, germany have said is that if the elections in ukraine on sunday are disrupted and russia is seen as part of that there will be more sanctions. anything that president putin says speaking to investors now that sounds conciliatory is very welcome. he made that comment about how russia respects the choice of the ukrainian people and that russia is prepared to work with the newly elected president. -- front runner in the polls he did not refer to him by names . he stopped short of giving a wholesale endorsement of the election or any kind of reconciliation with ukraine. he did not say he would recognize the legitimacy of the election and repeated his demand that the violence he blames the ukrainian government for stops that ukrainest and pulls back troops. i think of this as something that -- it was

ryan chilcote is here. while putin showcases his military power, the eu is reportedly preparing to expand sanctions. do we think that is likely? >> sanctions are a possibility. the foreign ministers gather on monday. they agreed in principle to expanding their list of category two sanctions. so far the eu has only sanctioned individuals unlike the u.s. which has sanctioned companies. the idea is that when they gather on monday, they may go ahead and sanction russian companies that were involved in privatizing or taking, seizing crimean assets. it is a distinct possibility. if you look at what may happen this weekend, we have just had this victory day parade. is president putin on his way to crimea? >> he decides not to. >> nonetheless, there is a big illstion mark whether he w go there for his first trip since the annexation. if the separatists go forward with these referendums that they said they intend to go forward with on sunday, if you have monday morning two regions in the easternmost part of ukraine

we will talk to ryan kilo death -- ryan chilcote from moscow with the details. nterview comes at a very interesting time. it looks like tensions are easing, nato and the u.s. both saying they saw signs that troops are pulling back from the ukraine. what was the message for you from medvedev? >> this was the first time that the prime minister has really talked about sanctions. his first interview with an international media organizations since the sanctions were imposed against his country. he effectively said that this standoff with the west could lead to a second cold war. to put it simply, no one is happy about sanctions since they're always a sign of s. you probablyon noticed that we have not commented on them a great deal or responded to them harshly. we could cause some unpleasantness for those who are imposing them. sanctionsonest, the are wanted by politicians who use them to reinforce their positions and demonstrate their power. for example, president obama needs to show the congress that america does not fear russia. if anything happens, they can hurt us

gauge, it is ryan chilcote. markets are really shaking that off right now.on as to what the stimulus are going to get. of a --ing a little bit this morning. >> global politics, the ukraine had the referendum this weekend. >> it would appear, at least according to the separatists, overwhelmingly in favor of self-rule in the easternmost part of ukraine. russia market is down by 1/5 of one percent. it is hardly armageddon. was just saying, it is >> ly -- your tracking potential megamergers. takeover andce a get full ownership of its german and italian cousins. b-sky-b is down just a little bit at the open, just 1.5% area this may make it a lot easier for you to watch your german football, your beloved bonus bundeot -- your beloved sliga in england. >> we saw mr. reid from pfizer talking about the synergies that could be involved between pfizer and astrazeneca. of course, both ceos will go in front of the british parliament to answer questions. david cameron talking about jobs, protection of jobs. his deputy saying any assurances on the paper they're written on.

the russian prime minister, dmitri medvedev spoke exclusively with ryan chilcote from the saint petersburgconomic forum. the obama administration pressured western ceos and canceled plans to attend this year and in the prime minister answers questions for what they are doing with the old soviet union. >> i think this is bad. it reminds me of the decision .ade in the country business interests suffer. themselves.sk ceo's i have met with some of them. why do they have to sacrifice their business interests for this strange sense of solidarity? >> it puts them in a difficult position because they want to make money on the one hand. bringing market ideology to the market. that is what the soviet union did in the past. u.s.is exactly what the administration is doing now. it will affect the interests of u.s. and european business. >> [inaudible] [indiscernible] >> there is only one more thing i would like to say. i would like to remind you know sanctions were imposed like during the cuban missile crisis or -- [indiscernible] . partnersand european are trying to scare us. it will lead nowhere. whe

we are going to speak to ryan chilcote about the victory of petro poroshenko.oing to be talking about the eu parliament elections. we have a senior fellow at bruegel which is a think tank as ti toas francesco gallie break down what the results mean. be having what should be a very interesting conversation with lady linda rothschild. she is ahead of group. if you think about what these epresent results r -- >> ok, olivia. looking forward to that. stay with us. we are going to be back in two minutes. italian government bond yields drops. ♪ >> welcome back to "on the move ." time now for some company news. pfizer is close to abandoning pound bid forlion astrazeneca. today is the deadline for pfizer to deliver a firm offer. according to a person familiar with the matter, the u.s. drug maker almost certainly won't to do so. this would have been the biggest deal ever in the drug industry. general electric has pledged to keep alstom's nuclear operations in france. ge is seeking approval for its bid to buy alstom's energy division. last week ge agreed to a government r

ryan chilcote. pfizer pulls the plug on making another for astrazeneca, losing out on a major overseas tax break in the process. but give other companies are lining up to consider the same move. there is no sign congress plans to stop companies from doing that. peter cook has more. this deal is dead. pfizer saving taxes by moving headquarters overseas, but a tax break continues to live on. >> the inversion break lives on, no clear sign congress will move anytime soon. one of the selling points of the pfizer-national zeneca deal was the tax advantage, that they could take over a smaller foreign company, and effectively and operations overseas reduce the u.s. tax burden, even on earnings here in the united states. that was controversial, and it was a selling point for the company, the shareholders, as to why the deal made sense. the deal blew up, but it was not because the tax break. the tax break is still here. 14 companies have announced or completed their plans to use the inversion tax break since

ryan chilcote has been speaking with him. ryan, large parts of the country did not vote here. you said 1/7 of the country did not vote. it still looks like a landslide for poroshenko. >> it does look like a landslide, olivia. we probably will get the official count for some time. with a fifth of the vote counted, he is leading with 54%, a decisive win and one that is consistent with what we have seen from the exit polls. i spoke with him just after you got off the stage, after he made what was effectively an acceptance speech. i asked him what his first job will be as the new president of ukraine. >> ukraine now is in a state of war. we are an object of aggression. every single night, ukrainian soldiers are giving their lives. for restoring law, order and he's in the eastern part of ukraine. president, but as a future commander-in-chief of ukrainian armed forces, i tried to do my best to defend ukrainian people, to bring security and he's. -- and peace. >> separatists destroyed ballot boxes and deprived 5 million people of the right to vote in the east of the country. he spent

ryan chilcote is there. of people who attending is almost as important as those people who are attending. >> i think that is right, matt. there are a lot of people not coming, particularly u.s. ceos. blank fine as a regular, he is not here. almost none of the ceos are here. the white house said they should stay away. most of those have followed those instructions. even the europeans, who have much tighter business ties with russia. even international organizations like the world bank, the ifc, they have all stayed away. intended toy quite send a message to president plans toat if he continue what he is doing in ukraine, there will be a price. that price is isolation. they're using this forum that the showcase for what isolation looks like. >> ryan, how are the sanctions affecting the russian so far? it orople talking about complaining about it? or are they laughing about them? >> well, they laugh, they complain. i think they think it is a sign of disrespect more than anything, an annoyance. in terms of concr

ryan chilcote sent us this report.him and russia a second round and he has to save the country. we know now. the object of progression. every single night, ukrainian soldiers are giving their lives to restoring law and order and peace. and to me, not only as the president and future commander of chief knows importance, what try to do my best to bring security. >> that is already being tested. since election day, separatist warningdidn't days ballot boxes. ruiningspent days ballot boxes. the kremlin said it is ready for direct negotiations with ukraine's future president. ryan chilcote. >> over to china now. the sentiment has been open the doors and they will come. that was the thinking years ago when chinese -- when hotel operators look at big cities. that is no longer the case and have to look elsewhere. david has been looking. >> i am looking. --ot of these big coattails a lot of these big coattails, it is about oversupply. , it is about oversupply. shank high, if i wanted to go shanghai, if i wanted to go this weeke

he sat down with ryan chilcote. ♪ "taking stock" -- this is "taking stock" on bloomberg.can take a spinning class anytime, anywhere from their home. join me now -- joining me now is the chief executive and the general manager. glad to have you both here. i want you to start off by telling us what made you decide that showing a virtual reality environment was what people needed in their homes to exercise. >> i thought the disparity between traditional and home theess experience and glasses. there are great classes where ande are great instructors motivation. vis-À-visastic traditional equipment that was not very motivating. we set out to find -- bridge that gap. >> explains the variety that is offered to whoever would decide to get on the bike and start pedaling away. >> we have all different levels that we offer so if you were to get to the bike at your house we have filters he can put in 30 minutes, 45 minutes, 60 minutes going up to 140 minutes if you're in the mood and we have languages. right now we have english, spanish, and mentor and and will be offering italian an

. >> this goes back to ryan chilcote and his interview yesterday. request -- the west pushing a new cold war. .ou are on the right-hand side but what is the difference between right and left? >> i leave that to you. we are focusing on the beauty side. they have gone in-house, when it comes to distribution of cosmetics and beauty products. that is a unique model and we are speaking to a man from the luxury brand industry who is skeptical about the usage of amazon as a distribution channel. he says that it will have a negative impact on the brand. >> you have an interview with one of the wise men. >> these are the german council of experts. we spoke to the bundesbank member who warned about the risk and the low environment. interesting views from mr. schmidt. he advises angela merkel. he says that the architecture within the eurozone needs to be more resilient and important aspects need to be addressed. we will be asking him about the ecb meeting. will the answer any questions about it? >> you will push them along. the recovery is the fundamental ques

for more on the latest out of ukraine, let's get more -- let's get directly to ryan chilcote.are we seeing in russia? >> it is down about 8.6% versus the dollar. , you lookt concern is at all the emerging-market currencies that we track. his is just out see the argentine peso. the issue is, up until now, the big issue has been capital outflows. the first quarter they are just over $50 billion worse -- versus $60 billion for the entirety of last year. now you basically get inflation coming up, as people have to pay more for goods in the store. that could erode consumer demand and that could hurt an economy which the imf says is already technically in a recession. as acapital outflows problem. you can see that on the mike's. down more than 13% this year. how we have this added risk for the russian economy which is a declining ruble. ryan, what is the latest on the ground in ukraine? looking at what is happening on the ruble, looking at what is -- ining on the ukraine the field. return to another top story beat analystnk estimates for the first quarter. they are also sticking wit

. >> ryan chilcote joins us. he has been tracking the action throughout the morning.thing around dawn. the situation has escalated quickly this morning. >> when the russian president spokesman says that ukraine's military action destroys any chance of the geneva deal being resurrected, that is something to take note of. really worth deconstructing. the geneva deal was reached a couple weeks ago. the whole idea was to de-escalate the crisis. as far as ukraine, the u.s. and the european union are concerned, it was already dead. that is why they introduced the sanctions. they said russia was not observing the deal, complying. so they hacked it. russia, at least rhetorically, did not say was that. now they are saying it is dead, demeans the russians do not feel compelled to de-escalate the crisis as the accord calls. the second interesting thing in that statement is this reference to ukrainian military action. we do have some kind of ukrainian action, military slovyensk,he city of an industrial city. this is the first large ukrainian offensive to take back one area being

chris weaver there, senior partner at macro advisory amah and our very own ryan chilcote.l tell you why apple may be closing in on the beats brand. that is coming up next. ♪ minutes into the european trading session. the top stock we watching, of they ares publicis. up by about a quarter of one percent. they were up one percent earlier. let's get the details of what happened and what is next for these to tablet type -- these two advertising giants. what brought this deal to his knees? >> i think you have to start at the beginning which is always a good idea very and this is always an unlikely combination. we actually broke this story under a year ago, nobody believed us for the first 36 hours because for anyone in the advertising world, this is like mars merging with venus. it was seen as completely impossible. the companies made a big show of saying that this was a combination they believed in, that it would work. obviously, there were problems. on the one hand there were some regulatory and tax issues. they're trying to bring in a complex structure. as part of it. there'

a warning from dmitry medvedev, he told ryan chilcote the u.s.e cold war. he d

he sat down with ryan chilcote. in moscow. that is tuesday only on bloomberg tv.ing up next, high energy spinning. ♪ >> this is "taking stock" on bloomberg. a company has a high tech solution. the exercise bicycles are connected to the internet and to you. a user can take a spinning class anytime, anywhere from their home. joining me now is the chief executive and the general manager. glad to have you both here. i want you to start off by telling us what made you decide that showing a virtual reality environment was what people needed in their homes to exercise. >> i thought the disparity between traditional and home fitness experience and the classes wherereat there are great instructors and motivation. it is fantastic vis-À-vis traditional equipment that was not very motivating. we set out to find -- bridge that gap. >> explain some of the variety that is offered to whoever would decide to get on the bike and start pedaling away. >> we have all different levels that we offer so if you were to get to the bike at your house we have filters so you can put in 30 min

ryan chilcote visited crimea to find out what life is now like in the region. >> the trouble with crimea starts with getting their. narrowest point, a two-mile body of water separates it from russia. roads which go through ukraine are all but closed. thehe only way to get from russian mainland to the crimean peninsula over here is to take this boat across the strait, until russia builds a bridge that it is planning on that spans the distance. no need foraine, passport. as far as they are concerned, this is a domestic crossing. the since russia annexed syria, crimean's have been somewhat stuck your new passports can take weeks. the old ones are not very helpful. >> the ukrainians are not allowing men between the ages of 18 and 60 into ukraine, even with ukrainian passports. they call us terrorists. >> ukrainian and foreign banks have all closed for my while many have yet to open from russia. cash machines and credit cards do not work. even in the cradle of russian orthodoxy, prices are quoted first in ukrainian money with russian in small print. doing business in the contested region is e