this traces back to 2007, when vodafone had an issue -- or the indian government had an issue with vodafone over the billion.n, worth $11 that company is now owned by c.k. hutchison. they have not been concerned that the indian government wanted vodafone to pay dues in the country it is operating in. angie: but i thought it was a brand-new day with narendra modi? this will have severe ramifications for india. juliet: absolutely. analysts are saying it is a knee-jerk reaction, ther were proposed changes to the income, which is why we are seeing this letter was sent to the dutch unit. they're saying they can look at places that are already open like this one and cases that, date back around six years or so, but not new ones. companies than would be taxed twice. in india and also in the country they are generally operating in. of course, a lot of analysts saying, this will have a damaging impact to asia's third-largest economy. businesses simply are not going to want to stay there. what happens next, we are not sure, but certainly at this stage another headache for vodafone in this long-runnin

let's have a look at vodafone and liberty global.y're at last doing their deal, a joint venture for the netherlands. vodafone is worth less than liberty global, so we could see a little bit of a one billion euro payment going from vodafone to liberty global, but we will likely see the stock up 2% on the open. we're watching that on the back of that joint venture. guy: thank you very much, indeed. european equity markets up nearly 1% this morning, 8/10 of 1% for the footsie. is the mining sector investable at this stage? >> realistically, it's difficult to make a long-term investment case until you see a lot of production shut in, rationalization taking place. consequently, i think those are the only places for long-term investors they need. guy: we've only back in a few minutes. also coming up, the cash open here in europe. we will be speaking to anglo's ceo. looking forward to that conversation. butight, chilly morning, european equities look like they will rise. the fairhe ftse on value calculation up by 9/10 of 1%. ♪ guy: we are m

that is an interesting move coming from vodafone.anus: i think that by back, what they are saying in terms of the buyback is significant. it will be following this conversion. let's get a little bit more detail as the headlines print. let's get you to bloomberg first word news. caroline hyde is here. caroline: david cameron goes to brussels today, following months of negotiations on eu membership terms. he will finely stop a four month referendum campaign. federal reserve officials are already signaling why they might lower growth interest rates. minutes from the january meeting and sure they were worried about drahgi's.f dan mulhall interruptions. china's consumer price inflation picked up in germany. in january from a year earlier, compared to 1.6% in december. japan's latest trade data shows continued weakness. exports sank 30%. this is the fourth straight month of decline. aports plunged 18%, leaving $5.7 million trade deficit. at least 28 people have been killed in an explosion and the turkish capital. the attack targeted a conv

vodafone will make a cash payment to reflect the different valuations of their local unit.isney has announced that filling has begun on "star wars" episode viii. it follows "star wars: the force awakens." disney has revealed two new cast members. is slated for release in december, 2017. the royal bank of scotland avoided when billion pounds in taxes by investing in controversial financing deals, including films like "harry potter." this allowed them for generous tax credits. this is your bloomberg business/. caroline: thank you -- manus: thank you. of europe's biggest banks have announced mass layoffs, billions and legal penalties, and lost hundreds of billions in market value. anna: e robinsond has written about what he calls europe's banking nightmare, and he joins us now. good to see you. how much distance from a financial crisis do we need before we can label it as such? can we look back at what happened over the last few weeks and call it a crisis, or is a premature? >> in the short term, it felt like a crisis. but i think it is indicative of a much deeper event, and t

nejra: vodafone and liberty global have agreed to set up a 50-50 bench. transaction will result in synergies of 3.5 billion euros. catchne will make a statement of one billion euros to reflect the different valuations of their local units. folks login diesel emission test volkswagens diesel scandal wade in january.to 23.4% competitors picking up shares, including a fiat preiser. european cars climbed. -- the embattled mining company is hoping to sell assets by year-end. will earnings beat estimates despite losing 5'6" billion billion?- losing $5.6 disney has announced filming has begun on star wars, episode eight. disney has revealed many sealed el toro and laura dern will join the cast. that is your bloomberg business flash. francine: let's get more on oil with javier blas, joyce's alongside nick gartside withgan. -- nick gartside jpmorgan. javier: production has been disappointing. too much to ask for this meeting that we know. the agreement to keep reduction at the levels of january 2015, very significant. indications by saudi arabia and russia that th

vodafone has been fighting indian authorities over years over its purchase of a 67% stake in 2007.s not oh the indian government money because it was conducted offshore canadian authorities are looking to collect taxes because it involves assets in its country. it is not clear with the government's next step will be. shares listed in london are down close to 10% over the last 12 months. we are also watching early trade in taipei. there is no clarity on reports it is to require sharp with shares up by 1%. in tokyo, sharp is in focus after rising more than 7% yesterday. the two sides are not expected to reach any decision on a deal. hon hai has not responded to our calls for comments. analysts have issued a note saying investors should stay on the sidelines until there is more details. they see the acquisition could dilute the earnings this year and next. it has reduced its rating on hon hai from hold to buy and cut the cost target from 110 shares. it is down nearly 8% over the last 12 months. toshiba shares also in focus. the company is disputing reports it is considering ending pro

vodafone is going into the bond market.hey are planning to raise about $4.1 billion by selling mandatory convertible bonds, convertible into regular shares. that is our latest bloomberg business flash. caroline: of course, we have always got to keep our eye on the prices. we are obsessed on commodity -- with commodity movement, wti currently up. brent extending those gains after iran voices support for the output freeze. we want to see how much impact iran has. javier bloss is joining us. the jury seems to be out. the ihs says this is important, but they do not outline whether they're going to be dampening output themselves. javier: it is a very clever play of words that was used yesterday. he is welcoming but is not saying whether he will adhere to the agreement. i think saudi and arabia did what they needed -- and now is the moment of true diplomacy going back to the back channels to negotiate how to move forward . i think the market will get some comfort that iran is being rejected. this is putting a flow into the oil ma

vodafone plans to raise two point 9 million pounds.rities will have maturities of 80 months or three years. the bonds will be convertible stock,dfafone representing 5% of the company's share capital. guy: thanks very much, indeed just what we get to talking about emerging markets, europe is moving out of its financial crisis and european banks are in better shape. this is the story right now. the markets fairly flat. has been in ara run following the explosion, the bombing of a military bus close to parliament killing 28 people. let's talk about the prospects for emerging markets. fed timing looks unlikely. we know the fed is unlikely to raise rates aggressively. the markets priced 2016 out. that has only happened. is that why the emerging markets, i was thinking malaysia this morning, round-tripped on the year. richard: there is really factor in emerging markets. the case -- the case against them was not as compelling as it was. a deep sigh of relief. i would be quite wary of the more commodity driven markets. i still think the recove

vodafone says it sees underlying revenue growth rebounding on the back of strength in europe. its most important market. this as the u.k. telecom group posted a 1.4% lift in third quarter revenue. eric moore is still with us. you own both. >> i do, yeah. >> why? >> i think astrazeneca offers defensive characteristics in what continues to be a low growth world. you have an ageing population. that means more people are going to take more medicines. a growing population in the east. and it's going to be a beneficiary. the numbers today are a little disappointing, mainly on the cost side. but it's a transition story. 2016 was always going to be a very tough year. the company has always been trying to focus investors. don't look at 2016. look at 2017 and the growth from '17 to 2022. when the market is feeling happy, it's prepared to do that and look through. >> i guess we all have grumpy phases every now and again. but you tend to be underweight banks and overweight pharmaceutica pharmaceuticals, including glaxosmithkline. how are your current positions working for you? >> that's e

however, vodafone and sky shrugging off the news, moving higher in this u.k. market. to me, the real key here is the order they must get greater dependence. but what does that look like when you're not calling for a split? when we look at bt's response, they're saying many of the steps proposed here we're already doing. so they're deciding what this actually means on implementation. definitely as you can see from that stock response, it's good they're not calling for an overall split. >> well, they're not calling for a split, but they're saying we reserve the right to potentially call for a split in the future if we want to. so they're putting that line in as well. >> and the recommendations are ongoing, of course. >> also in focus today, we've been looking at ab inbev. shares are under pressure after posting a fourth quarter decline in profits and a miss on the top line as well. but the belgian brewer has hiked its dividend. the budweiser maker warned about emerging market but struck an optimistic tone for volumes in the u.s. joining us now to dissect these results i

also, vodafone and pay liberty have struck a deal, creating the second biggest mobile and cable business in the netherlands. both companies hope the merger would save around 280 million euros in annual costs. >> well, let's get another check on european markets before we go to break. we have seen green pretty much across the board with the german main markets slipping into negative territory. remember, we're in day three of a pretty decent relief rally, losing steam at the moment. if we can take a look at how markets have been doing the last week, we'll take a look a bit later. again, it's been a sharp ride, sharp losses last week still have not been recovered. meanwhile, the latest check on sterling dollar as we get closer to the inflation data due. sterling gaining just about 0.4% on the green back. we'll break that data to you as soon as we come back. stay with us. >>> welcome to "street signs." i'm nancy hulgrave. >> hi, everybody. i'm louisa bojesen. these are your headlines today. >> crude prices paring earlier gains as oil ministers agree to freeze output at january levels. >> chi

they will sell 2.9 billion .ounds to vodafone they could buy back some of those shares when the convert months. you see the market is still a little worried. nestle down by 3.3 percent. if the slowest smallest annual ines growth gain for nestle six years. the posted 4.2% sales growth but that is not living up to their own targets. the long-term target is 5% or 6%. they haven't achieved that in four out of the eight years that the ceo has been at the helm. air france, look at that up for the first time since 2010. they still needed to deal with that pilot. guy: a quick and dig around these markets to see what is going on, this is the map on the stoxx 600, tech stocks have done pretty well. areth care is down, you seeing that kind of rotation out of safety into the more riskier assets in terms of the equity focus morning. energy is down, just a word of caution, shell has gone negative today. that is affecting what is happening in the energy sector. shell is down on dividend, be aware of that. energy off, but shell is a big part of that story. another thing to update you on, indonesia has

caroline: what about where you are pricing more competition because you see vodafone launching a news unit. is that an issue when you are seeing less competition? >> we love come petition. we have a great network and the netherlands. infrastructureng across the country which is totally empty so we can offer something like we have offered in the u.s.. we have the opportunity to consider other deals in the netherlands. i am looking forward to it. caroline: you are considering a deal in the netherlands? >> no. caroline: you are not going to sell off your assets? >> we are not planning to sell them off right now. caroline: you have quite a significant stake in the btee deal in inland. is that some -- england. is that something you would be interested in? strongest and most powerful tech side company. somethingwe have where we are ahead of the trend. the integration is alive in europe. so this is now coming to life in the u.k.. i'm sure the accommodation will be very good for the customers. they could experience data everywhere. caroline: what about enterprise? we are seeing other compani

a bit of a concern over all for vodafone, but it is a match overall. have one interesting take on the liberty global combination we are talking about combined in the dutch businesses, what does that mean? will it expanded to other countries as well? manus: i give her a much, let's get into these numbers. we they read the sticky on the earnings. anna: it seems like astrazeneca adjusted at $.84 per share. the estimate was for exactly 94. the revenue coming in just ahead of estimate at 6.4 billion. getting all the details of the very strong scum a lot of focus on what competition was going to do to their sales. that is coming and above estimates. against the estimate of 514 million. he says as anticipated first-quarter performance reflects a loss of exclusivity on several large drugs. we remain focused on judy chu priorities and achieving scientific leadership. that is the standard cell line. getting some guidance in terms of where they see the full year. they see mid digit percentage decline. a little bit of guidance there. that includes the recent trans

vodafone will pay $1.1 billion to combine the netherland operation of the two companies. first annual loss in four because of fewer visitors. >>> speaking of china markets re-opening after being closed for the lunar new year holiday. markets closing higher across the board. shanghai higher by 3%. shenzhen higher by 4%. joining us now is the managing director for asia at the eurasia group and former senior director for asian affairs at the white house national security council. what do you make of this move by the chinese central bank today allowing the currency to strengthen, signalling what? >> it's a big move for the chinese because the chinese government recognize that they need to stabilize expectations about the a even b and indicate it's a two way trade to stop speculators from putting downward pressure on the r and b. ate big deal. even more significant is the fact that over the weekend the central banker of china gave a big interview to a chinese newspaper. he's been silent for months on the issue of chinese exchange rate policy, chinese policy on capital outflows

vodafone is going into the bond market.pany plans to raise $4.1 billion by selling mandatory convertible bonds. they are convertible into ordinary shares representing 5% of the current share capital. this has been your global business report. for more stories, visit bloomberg.com. back in the markets. news that u.s. inventory has declined but a minor reprieve for the energy markets. investors devastated by rock-bottom oil prices. there are bright spots for the travel industry at least. the cochairman of lows stopped by bloomberg to talk about the impact of cheap oil. we are actually having some technical difficulties there. nonetheless, in theory, lower oil prices are good for gasoline prices. they should be spending that as well. we will continue to follow that story on bloomberg markets. called thehe is been best strategist you have never heard of. and simon will be our guest. hyman will be our guest. ♪ david: it is 2:00 p.m. in new york and 3:00 a.m. in hong kong. welcome to bloomberg markets. good afternoon. i'm matt mi