let's bring in ryan chilcote. ryan: very interesting. first question of the 80 he's likely to get is basically asking him to evaluate the achievements of last year. i think that is interesting. obviously he gets to choose the questions. . he sort of chose to take that first. the big event for russia was the annexation of crimea. as he said it, crimea joining russia, and the sochi fgames. he also pointed out that inflation has made russians poor er. he said we were able to prevent inflation spiraling out of control. he spent the rest of the time talking about the economy. this is what russians care about. interesting that the kremlin has decided to focus on the economy so prominently in this conversation. they know that that is what people care about. he talked about sanctions and a showdown with the west a little. his main message is we have an economic fundamental problem and we need to address it. and it is very different from the vladimir putin we were hearing from a year ago, which was we will assert ourselves. this is a we are going

he sat down with ryan chilcote. ryan asked him how his fifth campaign will be different from the ones in the past given what is going on in crimea. >> everyone thinks that crimea and ukraine is a bluff. ryan the opposition to use you says crimea is like a present to you. >> that is cynical. we could lose our country because of our policies. belarus is in a difficult situation. i am happy there are people who think this way. they have demonstrated they are not ready to take power in belarus and keep the country together. i would be delighted if the opposition does not try to come to power. if you cannot keep the country together, don't take power. don't go after that responsibility. it is cynical to suggest the situation in crimea and the ukraine -- how could it be? the people in belarus have begun to understand the values belarusians think that our state should be stable and peace is the main priority. maybe we will be a bit poorer than the rest. we don't care. we will live in a peaceful country. where areour childre

in a rare interview, he sat down with ryan chilcote. what did he have to say? alexander lukashenko, if he does win this election is an interesting guy from a lot of different perspectives. not just his crackdown on domestic opposition, which is why he's sanctioned in the west but also is geopolitical position. he is perhaps vladimir putin's closest ally in the post-soviet space outside of russia. yet he has directly criticized the annexation of crimea and has shown some support for the ukrainian side. one thing i was interested to hear from him about is if he thinks crimea was a one-off, as many people say perhaps it was, or if there could be more crimea as. if there could be more, could his own country, belarus, be one? i started by asking if he thinks there are people in the kremlin that might have that plan in mind. president lukashenko: there are a lot of people in russia who don't see belarus as anything other than a northwestern crossing. we want peace. just like we will never get into conflict with russia. we are people, and i include ukrainians, that gre

ryan chilcote has been going through the stories. what is your take away? an: ibm is the how a company shifts emphasis from legacy businesses like the technology and software that they used to provide a hardware that they used to provide and was prized for. some of the emerging businesses like mobile computing, analytics, analyzing the data and most of portal he, cloud computing. the company said it has said cloud computing and mobile computing and analytics grow by 30%. that is perhaps good news in terms of the direction of the company. however the legacy business ways down on ibm. this is the challenge for -- she has been at the company since she was 24 years and 34 years after the helm -- i should say 34 years after the company. house -- how has she done? her emphasis is to guess at the cloud computing. sheep $1 billion behind it. over her 10 year, share price is down about 7%. a bit of a sense of how investors feel about the company. we spoke to analysts and out of 30, 5 recommend you buy the shares. the dollar store it is a big part of the ibm story. re

the snapback is what they really rely on an ryan chilcote joins us with more now. a couple of reasons to be happier today? >> brent is up and people are concerned about the boom that we have seen major trail off and that sends the ruble strength the aunt and up this year. last year, the worst performing. the real situation is things like inflation and it is close to 17%. that is the highest it has been. you think about the first eight years of his rule and gdp rose. you have incomes on the decline. a lot of people will want to talk about the ruble and the general state of the economy. you look at the surveys and that is what they are concerned about. they will talk about it about policy. >> the expertise of russia right now, this is not any other country. we know about the high approval rating. >> it still stands. even if people do not like vladimir putin, they like his foreign-policy and it is all about the rise of russia in the trailer. it is about people showing up and standing up for the interest to defeat the enemy. this is patriotic and there is concerns abou

francine: let's bring in ryan chilcote. king there about russia crimea, and you also had a lengthy conversation about the economy. ryan: absolutely. belarus is in a difficult position. not just do your politically but because of its dependence on russia. it has really been hit by the decline in the price of oil.a lot of the demand for belarus and exports has disappeared. that has investors concerned. will they get their money back? you look at borrowing costs right now, the yield is about 12.5%. relative to the region, that is better than what the ukrainians are paying, but much worse than what the russians are paying. it gives you a sense of the concerns. at one point, it spiked up to 20% when the president mentioned restructuring. it is a real issue. 12.5% is a lot. francine: he wants to go back to the market. ryan: there is the prospect of a loan. there is the prospect for an imf deal. they want reforms before they give the money. in addition to that, there's the idea of tapping international markets. the real sort of saf

that is what ryan chilcote was doing this morning.: in canary wharf, hsbc has started a review of where its headquarters should be. let's get more with richard par thing can. the timing of this is interesting. what exactly are they saying? richard: they said that in the past few days, they've had a board meeting to consider where they should be headquartered now. that is something the board has asked the chairman to do. there are many reasons for this. it is seen that the u.k. has a levy on banking assets, and hsbc is europe's largest bank. they have more than $2.6 trillion of assets, mostly outside the u.k. if you have a levy on assets, that is what they are looking at, whether they should consider moving elsewhere to not have to pay that tax. francine: when are we going to find out? are we talking a couple months, years? richard: it could take a while. they have said that there would be no time when they see a conclusion just yet. there's a lot of considerations they have to take. a bank with $2.6 trillion of assets is not going to

but his former employer spoke to ryan chilcote in an exclusive interview. ryan filed this report about his conversation with the founder of the trading firm where he once worked. ryan: there are a couple dozen traders still here even though it is friday and late in the day. let me tell you how it works. the traders here pay a fee and a portion of their profits to help the right to avail themselves of the resources here. that is exactly what saroa did. he was working here for the better part of his 20's up until 2008 when he decided he did not want to share any more of his profit. i caught up with the cofounder and he remembers him very well. he was one of the rock stars here and a guy who stood out. >> if he is found innocent of the allegations he will be the world superstar trader. he will be the most famous trader in the world. ryan: he does not buy the idea that he would have been trading from his family home. it is not possible in the trading environment we have these days to do those kind of volumes from your own home. he must have been somewhere else.

ryan chilcote is live. what exactly has he been accused of doing? give me the scoop on that day. : effectively, u.s. prosecutors say navinder sarao was engaged in illegal trading. they say that he was doing something called spoof and layering, or putting in trades orders with no intention to actually fill them and can't slay them -- and canceling them in order to push prices in a direction that is advantageous to his trading strategy. it is a legal -- it is illegal. they've accused him of market manipulation fraud and wire fraud and they say that all begin in 2009, right out of his own home in west london. we are in a working-class neighborhood. it is about 11 miles from the city center and the financial district. not exactly the place that you would expect a day trader to cause what effectively was a global crash, even though it was called the flash crash and only lasted a few minutes. that is what they said happened on may 6, 2010. they say they put in a total of 19,000 orders, $200 million worth of bets and personally was responsible for about 1/5 of the sell orders on that day

ryan chilcote: bless them. you have a lot of it for sale and they are saying the program and the oil fields are out there for purchase. francine: thank you for the latest on the shuffle. guy johnson: the flash crash traders and we will take you there after the break. francine: welcome back. guy johnson: a traitor arrested for a flash crash will be appearing in court. he has been in custody for financial crime. we are joined now for more. this is a standard court appearance. what will we learn today? >> what we understand is when you do not pay bail, you come back every week until that has been done. we do not know why they have not paid fail. he had trading accounts and the amount was not paid. whether that has to do with money being in offshore accounts or it taking longer, we don't know. we are discussing what happens and whether the judges will make any amendments because of the conditions. >> can he bring it to the bail down? >> no. not a negotiating tactic. the initiative is having this come out quickly. t

ryan chilcote joins us. we are waiting for russia. ryan: that is right.at they are going to lower to 13%. there is a wide range of views. 10 analysts think they could go as low as 12.5%. five of them thought they could go up 200 basis points. almost the whole hog. 12%. there are two issues to grapple with. one is inflation. inflation at the end of march reached 15.9%. that is a major issue. for most russians, inflation is right at the top of the list of pulling of concerns. francine: this is food prices. ryan: food prices might even be higher. russians are used to inflation but they have always had inflation coupled with wage growth. now, they do not have the wage growth, particularly if they are pensioners. the second problem is the ruble appreciation. you think i know what is the problem there? it went in the toilet and it has come back, good news. the ruble is up 13%. it is the worst best-performing currency this month. this year. the problem is that that affects the economy and the competitiveness of the economy. some people think it might go beyond t

his former employer spoke to ryan's -- ryan chilcote. e with more on this conversation with paolo rossi. ryan, what was your take away? ryan: we are on few tech's trading floor about 28 miles outside of london. there are close to two dozen traders here. they have been here since 7:00 in the morning. the way it works is they effectively pay a fee to a few techs and they pay a portion of their profits to the firm for the privilege of availing themselves of the resources here. that is what saurav was doing here -- sarao was doing here before prosecutors took interest in him. i sat down with one of the cofounders of the firm. he remembers the vendor very well. he was one of the star traders when he was here. he says he's a guy who really stood out. have a listen. >> the potential to be one of the world's great traders. he certainly has been of his generation. ryan: a couple quick thoughts from rosie. he does not buy the idea that he could have been doing the trading that the prosecutors allege from that house. he says he would have had to hav

francine: for more on gazprom let's bring in ryan chilcote. geopolitics behind the decision due tomorrow. the eu will argue they are treating gazprom like any european company. russia will argue this is a political sanction. ryan: you've got to think of this spat in the larger context of the much larger argument that is happening between western europe, the european union, and russia. when it comes to gas the eu is on the consuming side. they get about a third of their gas from russia. the russians have done things in terms of fighting back like seeking. to diversify gas supplies to places like asia. they are going to look at these antitrust complaints tomorrow as a politically motivated decision with curious timing because the investigation has been going on for a couple years. the charges have been ready for at least a year and they will say why now. just as it looks like maybe we are getting closer to a softening of sanctions against russia. the eu has to vote on extending sanctions. it has to unanimously approved extending sanctions at the

and now he is on the scotland yard beat, ryan chilcote a modest home. r the flash crash of may 2010, all fingers pointed to kansas city and mutual fund manager waddell read. now u.k. authorities look to one solitary trader. now, ryan, help me with this, this gentleman was unknown right? ryan: that is right. it is quite an extraordinary story. his name is navender saroa. he is 30 years old, he lived right under the flight path to heathrow airport his whole life and it is from right here that u.s. prosecutors say this day trader effectively almost single-handedly was a significant factor in that flash crash, the collapse of the market on may 6, 2010. tom: what will be the drama today in court? does this guy come to the united states the? ryan: you know, that is what the united states wants. today is day one. he was arrested yesterday, he gets to the court, probably have to talk to his lawyers. the judge is likely to talk to the court that his lawyers are going to need time to prepare a defense. it has been a long time. clearly the prosecutors have had time

ryan chilcote: what began in crimea is now playing out in eastern ukraine. destruction. i have been a demolition sites, war zones. i have never seen anything like this. out here, far less certain. war has returned to europe. right on the outskirts of donetsk, and as you can hear, there is a significant battle underway. west versus east. and slav versus slav. going into the mines -- this is not a good place to go.

ryan chilcote was in west london at the home of navinder sarao. set the scene for us at his home. w about this man? ryan: let me to you this neighborhood is perhaps best known for being directly beneath the flight path to heathrow airport. it is one of the world's busiest sea can imagine and there we have the plane on cue just how loud and noisy it is. not the place you would expect to find a highflying traiader. navinder sarao operated out of his family home across the street where the media has gathered out in front. on may 6, 2010, the day of the flash crash, he was employing illegal trading strategies that got him a lot of profit. it actually began in 2009 and carried all the way through to 2014 winning him about $40 million. pretty hard for people in this neighborhood to get their head around. this is a working-class neighborhood and many of the people know his family. a very close-knit family and people say good things about him how he played in the street when he was a kid. people haven't seen him recently except for when he was arrested yesterday, but it is a big developmen

ryan chilcote: what began in crimea is now playing out in eastern ukraine.is utter destruction. i mean, i have been in demolition sites, war zones. i have never seen anything like this. but the outcome here is far less certain. we are going to stay low because we just heard a burst of gunfire. war has returned to europe. right on the outskirts of donetsk, and as you can hear, there is a pretty significant battle underway. it is west versus east. and it is slav versus slav. we have come to the front lines and gone into the mines. this is not a good place to go if you're claustrophobic. look at what i

ryan chilcote caught one the total chief executive in an exclusive interview. talking about the falling nice crude oil. what did total say? ryan: while oil is below its june high, it grew as the price roads by 20% in april. where is it going to go? total doesn't have a forecast. they don't say we think it is going to be here by the end of the year. they certainly are a break even price which they have been public about, which is $70 a barrel. i would be concerned right now . in terms of the big geopolitical players in this space, you have iran. you have saudi arabia, the biggest producer in the world now and the shale revolution to keep an eye on. if you're looking at the short-term view in derps of the shale revolution and what's going to go on with the oil price today then you care about the inventory numbers that we're going to get at 3:30 p.m. eastern time. analysts think we have more oil than we know what to do with and that could push the price down. if you take the long view and total is definitely a company that takes a long view what the c.f.o. had to s

ryan chilcote joins us from outside his home in the west london suburb. he was granted bail. tell us more about the conditions attached. ryan: he's been granted conditional bail, but it is not clear that he has posted bail just yet. that is one of the reasons you have a second day of the media circus outside his home. a lot of reporters and photographers here to get their very first picture of mr. saao rao, because there are no pictures of him since he was arrested area -- arrested. one of the conditions was that he post a 5 million pound bond. it is not entirely clear that that money got to its destination yesterday. the thinking is that he spent last night in jail and he is on his way here. when he does get here, to give you some more sense of the conditions, he's going to have to spend between 11:00 p.m. and 4:00 a.m. every day at his family home behind me in this west lust and -- west london suburb. finally, and perhaps most curiously, he has absolutely zero interaction with the internet. the prosecutors demanded that he buy a phone without internet ac

it is one of the greatest ryan chilcote: what began in crimea is now playing out in eastern ukraine. utter destruction. i mean i have been in demolition , sites, war zones. i have never seen anything like this. ryan: that the outcome here is far less certain. war has returned to europe. right on the outskirts of donetsk, and as you can hear, there is a significant battle underway. it is west versus east. and it is slav versus slav. we have come to the front line and gone into the mines. >>

. ♪ ryan chilcote: what began in crimea is now playing out in eastern ukraine.er destruction. i have been a demolition sites, war zones. i have never seen anything like this. out here, far less certain. ryan war has returned to europe. : right on the outskirts of donetsk, and as you can hear, there is a significant battle underway. ryan: west versus east. and slav versus slav. linese come to the front and gone into the minds.

when people experience the right product for them, they are ryan chilcote: what began in crimea is nowut in eastern ukraine. this is utter destruction. i mean, i have been in demolition sites, war zones. i have never seen anything like this. but the outcome here is far less certain. we are going to stay low because we just heard a burst of gunfire. war has returned to europe. right on the outskirts of donetsk, and as you can hear, there is a significant battle underway. it is west versus east. and it is slav versus slav. we have come to the front lines and gone into the mines. this is not a good place to go if you are claustrophobic.

ryan chilcote reports outside the home in london. ryan: there are several conditions to his failed.or one, you want to stay at his parents house every evening between the hours of 11 p.m. and four. a.m. he has to wear an electronic tag to prove he is doing that. additionally, he has forfeited his passport, so have his parents. finally and i find this the most interesting condition, the judge has banned him him using the internet. he has to buy a phone without internet access. history tells us this is quite likely. we took a look at some of the numbers between the years of 2004 and 2011 the united states made 130 extradition request for citizens here in the united income. the british government approved all of them. the courts only threw out some of the -- seven of them. the only way you can avoid extradition if you are british are health concerns. you can understand why he would want to avoid extradition. if all of the 22 charges are proven he could be looking at 280 years in an american jail. mark: in other news, a court in spain has refused a u.s. request to extradite a former jp

ryan chilcote is here with more. ggling because it's frozen food business in the u.s. is not doing well. ryan: that's right. people usually point to china as where their problems lie. i think the u.s. story is more interesting, perhaps. you look at organic sales growth in north america. three point 7%. it is trailing behind the global average of 4.4%. specifically frozen foods is a problem. frozen foods, in general. the idea of the tv dinner is one that people are discarding. in the frozen space itself, you are getting a lot of challenger brands that are a little bit hipper and that people are going for. this is giving nestlÉ a run for its money. specifically, lean cuisine. francine: the problem is it is frozen. if you are going for a healthier lifestyle, you don't necessarily want frozen. ryan: you don't necessarily want frozen and you want something with a little bit more flavor. nestlÉ recognizes the people are looking for something more organic or ethnic. they are trying to bring those into the fold. the other pro

ryan chilcote joins us for a little bit more.ou expect profits to be better in the refining side of the business. >> i would say it's down to their secret and not so secret weapons. the secret is the trading arm. they simply said it was a stronger contributor this quarter than a year ago. a very british way of putting it. remember, traders make money on the volatility of the oil prices. then the not so secret weapon is they do refine and lower the oil price. margins have risen sevenfold year on year. refining contributed $2.2 billion for profit versus a billion dollars worth of profit a year ago. this is massive, a 19% decline in profit as the price of oil fell by 50%. from $108 a barrel on the first quarter of last year versus $50 a barrel for this year. some analysts thought the prophet could fall by as much as 70%, particularly because of their exposure to the natural gas business in the united states, which has been hit hardest by the shale, oil and gas revolution. bp makes more money in the first quarter of this year than an

ryan chilcote has a great interview. he says he could be a legend. i haven't met a single person in the city or had a single conversation with anyone that is putting much weight on this story. isn't that remarkable? guy: it is remarkable. there is a sense that it would be staggering if this one man had caused the flash crash. i'm not going to prejudice the case. jonathan: it is for the court to decide. the line i saw yesterday that i thought was probably right was, how do you pinpoint a raindrop in the flood? as for greece, a couple weeks ago, we were saying april 24 this big meeting of creditors the deadline. here we are, april 24. jonathan: -- guy: we are in negative territory. jonathan: jurong dice alone, wolfgang schaeuble, all coming out and saying deal, forget a deal. guy: nobody is expecting a deal. that means you should be expecting a deal. they managed to pull the story right out of the bottom of the barrel every time. i don't think you can completely rule it out. if you've got guys like that saying those things it is hard to imagine that yo

ryan chilcote: what began in crimea is now playing out in eastern ukraine. >> this is utter destructioni have been in demolition sites, war zones. i have never seen anything like this. but the outcome here is far less certain. we are going to stay low because we just heard a burst of gunfire. war has returned to europe. right on the outskirts of donetsk, and as you can hear there is a significant battle underway. it is west versus east. and it is slav versus slav. we have come to the front line s and gone into the mines. this is not a good place to go if

ryan chilcote is outside his home. ryan, set the seen for us. where is it? planes flying overhead.is going on? why are you there? ryan: we are in west london right underneath the flight path at heathrow airport. the u.s. alleged a sole trader nearly brought down global markets and at least for a moment, for the flash there, that is why it is called a flash crash brought down the dow jones by a total of 1,000 points. so this is where he was operating according to a u.s. after david that was unsealed yesterday -- after david. they said he was engaged in illegal trading. march 6 2010 the day of the flash crash he placed 19,000 trades betting a total of $200 million. one out of every five trades with a sell at the end of it and he was permanently responsible for it according to the prosecutors. and that the prosecutors said led to him illegally gaining profit on one day. they sate actually began this 2009 when he started trading like that through 2014 and he gained about $40 million. he is now in an extradition hearing. that is supposed to start about 10 miles from here and a judge wil

in an exclusive interview, ryan chilcote sat down with rosol's ceo and asked him about the ruvell. ruble was the world's worst performing currency last year. it is the best this year. how is the ruble's rise affecting? >> the business will help us a lot but not only declining of ruble will help us but because 70% of our cost is in the ruble. not only this because they are -- declining and we succeeded in the fourth quarter. [indiscernible] in the first quarter we could see another decline. but not only because of rubles. because of a serious program to push the cost down. so we are going to follow that. ryan: the ruble is strengthening. >> slightly. i do not think it is a long term. i still think at this level of oil price and this level of russian economy, i think the ruble should come back to 65. ryan: where do you see russia's key rate after the central bank meeting later this week? >> i think they will decline this. ryan: what would you like to see? >> as low as possible. it would definitely help. i more care about our customers. in russia, because for them, it is important beca

will check with ryan chilcote now. you are going to break it down for us. seems there has been a big impairment charge. ryan: a $60 billion impairment. it is one of the first big movers from this part of the world in u.s. shale, in pennsylvania, in north dakota and it looks like they are taking a hit. natural gas prices have plummeted on the back of the shale revolution will stop you have to write down the assets and take impairments at some point. if you look at the other side of the numbers, marketing, trading, refining plus trading -- saving the bacon when it comes to the operational result. same with bp, same with all of the oil companies we are seeing out of europe. we are expecting the very same from shell when we get their results later in the day. mark: on shell, what are we expecting? ryan: the expectation is $2.5 billion in profits. $900 million of that will come from drilling. $120 billion from refining. refining and training -- i was thinking of it as like a diving class. the first two or three kids make the dive and do well, now it is shells tur

ryan chilcote is outside. what do we know about this man? ryan: his name is navinder singh sarao.criminal complaint yesterday, the affidavit. he is 36 years old and he is from this somewhat quite neighborhood in the west of london. i say somewhat because it depends on whether the planes are flying overhead. we are directly beneath the flying path of london's heathrow airport. it is not the most expensive place to buy a home because of that reason. we're also next to a noisy highway. it is from this street in his home that u.s. prosecutors say he engaged in illegal trading activity beginning in 2009 and significantly contribute in to the market crash, the so-called flash crash on may 6, 2010. interesting. we are 11 miles from the financial district, perhaps not the place where you would expect a lone daytrader could cause a global stock market crash albeit one that only lasted for a few minutes. they say that on that particular day navinder singh sarao placed 9000 orders to the tune of 2000 pounds of debt. he illegally gained $900000 on that day and in his five-year tenure of a leg