he talked about peer-to-peer. >> one of the most interesting trends in sme's has been peer to peer lendings an innovation, we crafted rules that bring it within the regulatory sphere. the industries want credibility and respectability. that is an interesting development. it is very small. of the scaleend you have major private equity funds doing direct lending to sme's as well, it has a better return on investment. >> martin wheatley at bloomberg this morning. calling for innovation within the financial sector, particularly when it comes to credit for individuals and sme's. let's talk about this subject. we have the cofounder and chief ofrketing officer the peer to peer lending marketplace funding circle. you have been through the regulatory hoops martin set out. they comes with some downside, the effort you have got to put in. the fact that the industry is becoming more recognized has huge advantages. >> hugely. if -- funding circle is a way for businesses to borrow from people. consumers lend money directly. they take a rest for doing that. in a world where there is a risk environment it

they're thinking about sme lending being secure. we only have a 200 billion sme abs market, again, very small. we expect only the most standardized approach. we will get the abs market in europe going. >> that will take time. when i was in washington i spoke to mario draghi. i said to him, the mark set too small and you'll create distortions if you do this. i said, i completely agree. oh, dear. >> it's the right step. it's the right step. they're starting from a position of having no transfer market really in europe of capital or risk. that would potentially lead to some lending growth but it will take a very long time. the setup will take at least a year to actually seize the volume. it will take a very long time. from our perspective it's a positive in the right step. it's not a conclusion that we will see material growth in transfer of the abs market yet. >> you're staying with us. we'll read on. the ecb is expected to take defensive measures to support the eurozone economy next week. but with lending contracting for the 24th mon

it has to be directly lending to smes.t the end of the day, it gets diverted among the banks, i don't know. the idea will be linked to enlding to small, medium size enterprises. you can link it in with forward guidance to further ratchet down rates at the shorter end of the curve. also try and get the currency down. >> can they get the currency down? i thought we gave up targeting currencies. >> when you talked about our colleagues in foreign exchange, they think a key reason why the euro had gone up is because of the central bank's balance sheets. a . >> i thought also there were not sellers. european banks are not sellers of the euro, are they? >> no, no, there is a view that you need quantitative easing to get that down. >> do you think the end game has moved on. >> it's probably moved on. cutting rates, taking the depo rate negative and doing more forward guidance linked to sort of lending type thing would, you know -- >> it's interesting what would help if we had u.s. yields going up and a sign of things in the u.s. t

sme they are prerving dozens of -- they are preserving dozens of different species.zoo is frozen! so let's take a look. at the famous san diego zoo safari park, lies a zoo within a zoo, replaced by liquid nitrogen and cell cultures. this is san diego's frozen zoo. that's right, zoo. not the one you grew up visiting but one in which there are living cells from over a thousand expertise, preserved species , preserved and frozen, all to help protect future generations of animals currently facing extinction. what was the genesis for creating the frozen zoo? >> the possibility to save sells -- cells allowed us to undertake, each cell of an individual is capable of producing the entire individual. >> take me through the process of freezing cells. >> we get a biopsy, a small slice of that fest >> we can take those cells and treat them so they can be frozen and put in suspended animation. >> tell me about that. >> you can freeze it to a very low temperature like the temperature of liquid nitrogen. all life stops. their state of suspended animation can be that youd and thawed

i'll keep this in an environment ministry the delegation had been weakened demand to see nearby smes fiction ge know why most continental months now newly designated as an evacuation zone after the nuclear accident in march two thousand eleven. the area is currently being planned for early resettlement. i use the central government to reduce annual radiation exposure to below one will receive it before residents that at home is as the damage should be responsible for d contaminating and training inside houses and buildings he also calls for the pro de contamination and the bottom of the towns that she go down eleven twenty told the delegation that the ministry will respond to the request in a sincere manner with other relevant government offices that i had town officials plan to decide the timing for the return of residents. as early as later this month. in china are many people with intellectual disabilities or mental illnesses face difficulty finding the support they need but any piece of volunteer groups in staffing and to bridge the gap in a pita flank an age humans can hear ye m

there are like more lending to smes, particularly in countries like spain. >> it is not a convincing coming from -- >> a think what you will see, and markets will be very disappointed if the ecb does not take any action in june, but that the press conference last week, you have a commitment from mario draghi and the ecb that some form of action is going to be taken in june, possibly in the third quarter. but, whether it is quantitative easing, whether it is lt ro plus , it has to be targeted lending to smes, whether it is negative interest rates where banks put money on deposit, they are actually about 10 different things -- there are 10 different things the ecb can do. you're certainly going to see .ome action by the ecb in june one of the objectives is a weaker euro. >> bob parker. thank you for your time this morning. richard branson weighs in on was apple's biggest ever acquisition. why it might be good for musicians. ♪ >> we were very fortunate to sell out our record company when we did. it was right at the peak of the industry. since then, it is largely due to apple that the in

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team because too much of deceiving many as an annex to a misstep that means and into drug enterprise sme if you're going to need him to be more careful i'm not against ingenuity and whom trajectory has no clothes and with any more carefully. we stayed up to thousands flocking in to present his team already the first wave of tax reduction has been priced into the firm's something akin to twenty being continuously for ten minutes on that. the knitters to read using the sushi ensuing eighteen two thousand and sixteen and seventeen nowhere do i stand before sending another package of measures in favor of it. so you would of taken a step by step approach more than spending it on over and before you nicely to be the future when i've gone era says there was some question marks regarding to the government's projections some people say that the growth projections that the government has sent out to be too optimistic. it is in the next change is also what you make a liking for two cars and fall to the predictions of one person which isn't quite recently and would you define it as being in a row fo

the percentage of viable constrained smes. these are smaller and medium-sized enterprises with the possible turnout for the last six months that are unable to seek a bank loan. a minimum of 1% in germany to 25% in spain. as much as it third of smes and in portugal are financially constrained. they lead to lower inflation. the credit market picks up throughout the recovery. banks across the eurozone are raising capital. you want to make sure that credit supplies are there. the big debate is how to a dress credit supply -- address credits apply. rate cuts is the big expectation. the unconventional tools is about how they address credit supply. >> we will find plenty of skeptical academics in portugal talking about the asset backed securities program and whether we will cc be buying asset-backed securities. we will have more on that later ron. thank you. >> the ukrainian resident elect -- president-elect of i to step up opposition against -- this is an interesting sort of shift in record from him, isn't it? >> it is. ukrainian ce

the percentage of financially constrained but viable as an e smes.straints will slow down the recovery, have an impact on lower inflation in those particular countries. a lot of people think that we could get some targeted measure towards credit easing. debate that is happening in portugal right now and will carry on all the way through to next week is how ge's credit conditions in the eurozone. that is going to be a big one. >> the president-elect petro poroshenko has allowed operations to rain and separatists in east of the country. that sets ukraine on a collision course with russia which is warned against the move. ryan chilcote is in kiev with the details. use local 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

we talked about how financially constrained some of the sme's were. in spain, 25%.is higher unemployment numbers as well. ,hen the credit demand picks up he wants the supply to be there. >> this is something that laurence byrne made in paris to margaret not just the constriction, but the cost. you are looking at 1.522% more expensive. -- 1.5 to 2% more expensive. a little bit of a jolt for the market. another nail in the coffin for marriott draghi. we will leave it there. we will be back tomorrow. stay with bloomberg tv. ♪ . . >> an unprecedented offensive. we bring you an exclusive interview with its foreign minister and rare access inside crimea. over who chiefs clash should take the top job after protest parties surged. president met the french president in paris to try to win the battle for alstom. ," live to "the pulse

they can go into the sme, small and medium enterprise business.over time they are going to get into wireless. mobile video is much bigger. do they go after national ad dollars? we're on the cusp of targeted advertising making a big difference. all of the studios are talking about what a fabulous impact it has had for television and film. we are seeing content being used in many ways. scale matters because you want to reach the most consumers with the best product and be able to offer it across multiple platforms. >> the bigger you are, better positioned you are in tv, broadband, internet, contents. wireless. we have one player that will basically be our entertainment everything? >> obviously that's what they are hoping. they would hope to get you -- hope to have you for their suite of products. they have really changed the entertainment landscape. most new yorkers can't wait to get this product. you see a fantastic search and recommendation. it is a different user interface than we have ever had. they are going into the biggest markets and what th

and the smes are responsible for 85% of new jobs.pes of deal that is the trade impact partnership impacts me. >> if i can pursue the income story one more time, household income in the states in 2008 was $56,000 per household and now is near $51,000. a lot of the households are employed but not enjoying the fruits of the recovery because their income is down. because the jobs and the growth isn't effective them so much. it's the big companies that are doing very well. it's the pfizers who can track them down. the smes and owners of those, perhaps not so much. >> when you look at the jobs report, 288,000, unemployment is down a half percent at a level that is as low as august of 2008 before the crisis. and that's thanks to the grit and determination of the american people. we know that there's a lot more to go. we know that we have much more to do. and i understand what you're saying and the pain people are feeling, but it is moving in the right direction as do the economists. they believe the numbers will continue to improve and we s

joining sme a forensic audio expert and here to talk about the video. paul, tell me about this. when you first heard the audio from this and you watched the video, as well, what were your first impressions? >> well, it was carefully scripted. the leader was reading from a manifesto or outline or whatever written for him, a script, in fact. also, i saw that there were a number of modern technical video type of transitions and postprocessing. so i can tell you that they have -- >> means it was well produced? >> yes, indeed. there were titles. there were super imposed logo. there were dissolves where one scene dissolves into another. it wasn't just have a camera, shoot something and then shoot something else. >> and cut, cut, cut. >> correct. no, no. >> highly produced. >> much higher production value. >> you think it's high quality, as well? >> it was. it was hd and there is a number of different areas that the nsa and cia would be looking into and they will have teams. one is going to be analyzing the actual words to see whether there were any hidden messages. another is going to

they had been broken up into very small groups of five or six and scattered and that would really make sme sort of large scale rescue operation impossible. now that you know you've got one relatively large group, 100 plus, that's really positive and gives you some potential. but as these resources are moving into nigeria and flying overhead and satellite and people on the ground to help analyze that intelligence, you have a daunting task. this is a remote area, difficult to gets to, you have to find them and get there and are to do it without having the hostages armed. >> we have known there had been a two-hour warning that the mir aweders are approaching the town where the school was and there was no help from police or other military in the area. what about payoffs and corruption and relationships between these terrorists and different factions within the country itself? >> there's a tremendous degree of corruption within nigeria. really all fronts, not just security, the bigger problem in this case is the nigerian government, both the federal government and more local officials don't ha

maybe if they do clever stuff in directing better credit, abs, for example, at the sme market, that could really help fill the void of bank lending there. that may do something. it's not going to change it significantly. instead, we have a long process of growth that we need to get coming through in countries like france and italy. >> chris, we'll come back to you. we'll talk about the chinese number. i know you've had a number out of japan as well. very briefly, on this german manufacturing, do you think that's had any impact from russia and the events in ukraine? >> i was expecting it to have, when i first saw the number, i thought here we go, this is the ukraine, crimea hitting that number. we delve through the anecdotal evidence companies provided. virtually no mention of it whatsoever. i think it must be there, some uncertainty creeping in and hitting exports. importantly, the domestic economy in germany, the service sector is showing strength. that's what all the critics of germany have been wanting to see, consumers in germany starting to come back to life, spend more money and get

if you can configure good service and good deals to smes, you can and should do it for schools and libraries. the security of broadband networks is a matter of utmost significance and urgency is hardly news. we are at a critical juncture. the more we learn about the challenges of cyber security, and the costs of failure, the more apparent the importance of addressing this challenge with best efforts, including yours. we know that these are nontrivial issues. we also know that the best solutions come from when we work together to identify solutions and to get them implemented throughout the industry. this must be done in a deliberate, responsible, and transparent fashion, that balances security, privacy, and innovation. cable is already working with the fcc to do just that within our communications security reliability and interoperability council. we expect the outcome of their work to be an stray led effort to pro-actively assess cyberreadiness within your companies. community indicate your risk assessments with your boardrooms and share relevant portions of the assessment between partners

chinese smes are still facing 10% to 15% lending rate. given that market has slowed to less than 5%, it suggests that perhaps the current monetary policy condition has been too tight. >> now, look, investors talk about, when they look at this number, they talk about the risk of deflation. i wonder whether that's overdone. clearly in this number, consumer price inflation, theful in that, producer prices, yes, that is negative but isn't that down to the weakness in global commodity markets as an overcapacity issue? >> that's true and indeed, if you exclude vegetable prices, the china's cpi inflation is lower at 1.6%. the downward commodity prices also has been pulling down china's ppi prices. but what we have been observing that in q1 this year, if you look at monthly economic indicators, they were much lower, perhaps, than the 7.4 gdp growth tend to suggest on china's real economic activity. and even the central government is using some mini stimulus to prop up the growth but if firms cannot see profit margin rising, they will not be able