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tv   The Pulse  Bloomberg  March 18, 2014 4:00am-6:01am EDT

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gone away. it is just a matter of time before plays back in the markets. >> it depends on how the markets react. you're watching the latest from president putin. president putin has artie supported a bill to approve the accession of crimea to the russian federation. the really important thing to watch out for today am a francine, is the speech by vladimir putin in moscow and at 3:00 p.m. london. 11:00 in london. >> that will be a speech to watch for. everve of course the first press conference by the new head of the federal reserve. >> nine straight years, that is 30 six quarters with sales
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increases. -- that is 36 quarters with sales increases. shares have slumped 15% year to date. everyone's lips in the united kingdom. how will sainsbury ride this out? >> people just want better value. jon, you are watching the copper mining company. >> yes, earnings down on last year. downto-date, copper is 11%. the estimates. happens going forward? the copper prices falling.
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right, jonathan. we are watching antofagasta. we will watch the fed tomorrow and the u.k. budget. we are watching carmakers. car sales rose some 7.6% in february. this is largely helped by new models, but also some cash from incentives in europe. nothing to write home about. we will take it. jonathan, we have lots of components in today's trading session. what are you concentrating on? expect them to vote against it. it is all about the details. right now, they say it is time for the european market. futures falling a little bit lower through the morning. it racing all the gains we have seen in the last few weeks. 5100.
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dax barely budging over in frankfurt. geopolitical rich still very much in focus. president putin says he supports a request for crimea to join the russian union. the dollarook at yen, the beacon for risk aversion. falling down by 1/10 of one percent. changes right here. 101.6440. you have japan down by 2/10 of one percent. you 1.6599.uys -- city might get a big of a a bit of a hawkish tone. bullish over at morgan stanley on sterling. >> thank you, jonathan ferro. today's cross asset chat.
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great to have you on the program, paul. we have lots of components in the market. we have the split situation between russia and ukraine. let's start on china. what we are hearing is possible corporate defaults, a government same time itthe does not have quite a firm handle on the economy. , is this thent initial beginning of bad things coming? >> that is a good question. i think it is broadly postured because it is clear they are more market-based economy. their increasing the extent to which market forces influence was going on there. that has to be a good thing. the stock about allowing the currency to move more freely against other currencies as well. again, it is a move in the right
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direction. any country which may see moves that are going to be problems that are highlighted. in the long run it is going to be a good thing. in europe we are not seeing a lot of growth, there is still the specter of inflation. will help theink most for investors? >> i think there are things we do not yet know about. it is just a broad uncertainty. there isn't too much really wrong. theres no great specs out . ukraine might escalate. you might say the u.s. is doing good third europe is not looking too badly. it is certainly better than it was a few years ago. problems no real great you can see out there. the periphery is improving greatly. it has improved a great deal over the last few years.
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possibly what worries me is what is going on in the ukraine. what is going on in china isn't just greater market transparency, but there is something more serious underlying it. these are all great unknowns. >> if you were to construct a media list for the ideal portfolio, which we keep in cash -- >> >> what we're trying to do is increase diversification. this is an just diversification within equities, but also to other asset classes were you different risk premium you have a liquidity premium. if you don't need to realize your assets for 10 or 15 years, invest in something where your money is timed up, where you get a premium.
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>> like what? >> like infrastructure. they're difficult to get into and difficult to get out of. >> talk about u.k. infrastructure or infrastructure in africa. it is a risky business. if you want to invest in infrastructure, do you do 20% in africa and 80% in europe? >> it met -- if you want to invest in something with cash flow, then invest in something closer to home on something which is already an established infrastructure project. if you are investing for growth, looking at emerging-market infrastructure is more attractive because then you're getting direct exposure to growth in those countries. >> european head of strategy at j.p. morgan asset management. stay with us, we will be asking you more about some of the top x. -- of the top picks.
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a fixed gain in european car sit -- a big gain in european car sales. stay right here with us, we are "on the move." ♪
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>> welcome back. i am francine lacqua here in london. this is "on the move" here in london.
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this is a stock that is definitely on the move. it is one of the biggest gainers in the last 12 months. uk's largest online only fashion retailer. the fx story playing more into these earnings, but also they basically specifically said this is because of the australian dollar and the russian ruble. moves thisre to fx stock farther down. shares are gaining even as the company reports a four-year profit. jonathan ferro has been looking at the copper crunch. does this all have to do a china? >> yeah. it has been exposed to china and the copper prices. net income, not much better, either. revenue down 11.4% margins lower
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, too. not brilliant, but no one expected it to be. it actually beat estimates. it is one of the reasons you've seen stock prices rise this morning. there challenges for anyone producing copper. the price of copper averaged just over $7,300 a ton last year. this year already we are down another 11%, averaging a little over $7,000 a ton. his will be eating away at profit for copper mines. it is something they will have to deal with as the year progresses. it is the main concern for copper miners. slowdown inof a china will play into a lower copper price. -- it has not all been bad news on the demand side of things. the power industry accounts for 40%. the government in the last couple of weeks has pledged to invest in the electricity grid why 13%.
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still, the miners will be hoping demand holds up. live a account down about an hour ago, the ceo said they do not expect a major change in consumption. good luck to them. >> john, thank you so much. is all sweeney, he is head of strategy at j.p. morgan asset management. first of all, i want to kick off with earnings in general. we hear from and none for guest, from on -- we heard -- hopefully -- currency volatility should equal out in the wrong in the long run -- in the long run. clearly, you can't close
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volatility in the short term. >> you pick asset classes, but you also pick them in the longer-term. >> 10 years plus, usually. >> you like really -- you like infrastructure and real estate. real estate where? feelsms that london expensive. >> it depends on what you want out of an asset class. if you're looking for income, then you should be close to home. you want to be investing in things which are producing a good solid income stream, which is close to your own domestic currency and reflects your domestic inflation rates. if you are investing for growth, you might want to invest in more speculative real estate projects. look att want to emerging market currencies. in thing about infrastructure
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and real estate is we talk about them as if they were single asset classes. there's a huge amount of diversions as to what you can get from those classes. it is important for each investor to work out why they want to be in those asset classes and what they want to get. >> when you look at the trends in the next 10 years, it must be difficult to predict. the amount of change we have had with disruptors and technology and the way we consume mobile, mr. one thing you see pointing out or do you look at tech or do you deliberately ignored tech because it goes so fast that in 10 years it could be a whole other game change? >> the way i think about tech is that it is important to get as much diversification as you can for that sort of asset class. one of the ways of getting that in promotion of u.s. tech companies. recognizertant to that if that is a theme, you
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want to get exposure as broadly as possible. it is not clear whether it will be apple or samsung or htc that is doing very well. you want to get as much diversification to the risk as possible. be theknows what will biggest company in 10 years. don'tfive to 10 years, we -- we haven't even heard of the problems that we will have to face them. >> absolutely. one of the main things that i look at when i am building asset allocation is not so much with the returns are going to be for each asset class, but how related are those classes, how much risk is there. to interact. we want to make sure with multi-assets that the risk of everything going down at once is as low as possible. if it is a big risk for the market, then you can't help it. in the long run, you want to make sure that you are not too
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greatly exposed to any single lyoup which might consistent perform badly. think treasuries in the medium and long-term range, yields are going to rise. there is not that attractive an asset class. if you want to have some sort of safe haven, then sure, treasuries. the short and might be appropriate. for long-term investor, it is not going to help you meet your goals. take on the your german economy. have a strong pound, so it is very unclear what the bank of england will do. >> i think the bank of england will be reluctant to do too much , not just until growth is
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properly embedded in the comp -- in the country,. do people feel confident. isn't confidence in the economy that people are going to go out and spend rather than holding money back because they are uncertain? >> paul, thank you for that. european head of strategy at j.p. morgan asset management. views can watch that live right here on bloomberg tv. runr the break, a record comes to an end.
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"on theme back to move." i'm francine lacqua here in london. billionaire sold shares in apple and facebook. according to one of his a visors, he said chinese up to 80%account for of his foreign internet investments. he is russia's richest man billionairesforbes list. the unit of associated reddish
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funds will pay to bangladesh collapse victims. volkswagen's lecture unit is of itscing a variation then remodel next month. now staying on cars, european car sales grew for a sixth straight month. hans nichols has all the details. likeis some kind of scheme cash for clunkers or new models? >> the numbers are good. 7.6% year-over-year the last two months. a little bit of this is artificial demand from cash for clunkers discount here in germany. cw is the clear winner. up seven point two percent year-over-year. daimler at 3.6, bmw 3.7.
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g.m. 12%, toyota 14%. autou mentioned, the industry here at western europe has so far to climb out of from the depths of the recession, it had some a bad months. that fact that we had 60's and months is a strong sign, but it is necessarily mean the auto industry is back to precrisis levels. >> that hasn't been all good news for volkswagen. asking board is shareholders to reject the bus. >> volkswagen wants to get scania and have a fully operational truck division. at the time of the closing it was about 836% premium. what the shareholders are saying is, not so fast. what vw needs is 90% of equity on their side voting for it. there at 62%. they have a long way to go.
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they have a bit of a sales job up in sweden. this is the best thing for the company moving forward. hans, thank you so much. hans nickel on the very latest -- hans nichols on the very latest in european car sales. is our european business correspondent caroline hyde. carolyn, and of an era. they have been rising in rising the sails. is the first time in nine years that they are falling. years excellent, 37, not so good. a terrible, terribly unseasonable wet weather. the market is also growing slower. since 2005.growth admitting that the outlook is challenging. what many investors did is the sound of a price war. ceo was in line
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with that. to competeds aggressively with pricing. match the price with a coupon. it looks like the competition is really on. not mention all the the little discounter. >> basically, people want something for the money. isjustin king, the king exiting the building. he will leave in july after a decade since he has been at sainsbury. up underlying profits or tripling them. the new designate might is going to have a lot to taper from. enew designate mike coup
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is going to have a lot to taper from. what about the convenience expansion. that is an area they are starting to win in. locals in smaller shops are starting to add to profitability. shares up by 6/10 of one percent. they're one of the worst performers in the 5100. in the ftse 100 -- in the ftse 100. ,asos is up.kly >> they have got 26%. would company has 26% in sales and suddenly slumps that much as asos. australia and russia concerned with foreign currency
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weakness. >> coming up, sanctions begin as the crimean annexation appears inevitable. coming up next. ♪
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>> i'm francine lacqua at bloomberg's european headquarters in london. that's enough things are shaking up. -- are shaping up. wait for that big vladimir putin speech coming up. watch out for that. it is live at 11:00 london time. federal reserve officials begin a two-day meeting to decide stimulus policy. equities are down.
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you can see the euro dollar down. at 1.65. we will have a full roundup for you a little bit later on. these are europe's top headlines. stocks and bonds issued by chinese real estate companies drop after the dell avella per -- after the developer bonds tumble. the first after company in china has he faulted on onshore corporate bonds. this is according -- six of those percent six percent of those surveyed say the bond will drop. the fed begins its two-day
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policy meeting today. in russian stocks will prove short-lived as willdent vladimir putin see stiffer sanctions. president barack obama says the nation will face more pellet -- more penalties. he is scheduled to address lawmakers today. president putin today ordered the approval of crimea's accession to russia. editor david tweed is following the west response. what kick it off with you, is the latest and what are we expecting from vladimir putin today? >> anybody's waiting for the speech. the main news broke way before that with an executive order. that will be the main topic in his address to the parliament. the question is, what sanctions will follow from the west on
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this? obviously, judging by this move yesterday's sanctions were obviously not enough, the ones made by the eu and the u.s.. the freeze of the officials passes and visa ban. it is not considered serious enough to force russia to turn its course around. >> just give us a sense. it all depends on how tough the sanctions will be. what is the feeling on the markets. can they be very tough? >> the understanding in the market, and especially after yesterday's rhetoric from the u.n., sanctions will be milder than expect it. a worst-case scenario is if there will be an export band or some kind of financial transactions ban for major exporters like gazprom. that would be the worst scenario
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for american investors. war over, bank of america came out with a note today saying they are not expecting a sanctions war, because russia the u n andocate to u.s. sanctions in a pretty strong manner financially and economically that would damage the european economy. right, ksenia, thank you so much. >> we have already seen a few words from william hague, the u.k. foreign secretary who tweeted that he condemns the actions that russia has taken. he was referring to russia's recognition of the ukraine -- of the crimea as a sovereign state heard he was referring also to this draft bill to go ahead with the accession of crimea into russia, giving the timing of his
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tweet. i think one of the key things that european leaders are coming upr is this and russia -- the speech coming up in russia. one of the areas that vladimir putin will also talk about is his position on ukraine. we arty know that the russians are talking about wanting to see military neutrality in the ukraine, which means not joining nato. they're interested in seeing the establishment of a federal state with more autonomy for the region and the reintegration of russia as the formal second language. i think these are areas we need to look at in that speech as well. what does vladimir putin want from the ukraine, especially when you have got people like the eu enlargement commission to the german newspaper,
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elt." >> we are also concerned about counter sanctions. the eu must tread carefully. london has a lot of russian interests. >> absolutely london has a lot of russian interests. we are seeing that criticism of london because of the interest of the city. we did catch up with william hague last night, and it looks financial sanctions are not off the table. look at what he said. >> it is the u.k. that is arguing for us. they're making every effort diplomatically. they're putting russia on russia the same time. if not made any special case about british financial interest. >> is clear that they want to keep the diplomatic line we have heard from angela merkel, but worse to worst, there will be
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economic sanctions. >> david tweed, there, our european editor. >> the latest report on providing credit to women in the developing world. welcoming the managing director of goldman sachs in the emerging markets. >> what is your take on this? >> this is a very fluid situation with a broad range of outcomes. we don't advise our clients on policy, but we do have to advise them on the economic and investment applications. we do have russia exposure in our emerging markets, but they're very diversified portfolios. we are sticking with the positions. if economicat not sanctions are severe, there will be extreme trade and investment disruptions in russia. on the other hand, if you take a step back and look at equity
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market valuations, they haven't been this cheap since the 1998 russian crisis. that was at a point where the country was going to default on its debt and devalue the ruble. we are very far from that scenario. i'm not saying that low price means great value, but there's clearly a margin there. >> you see little market correction. we see little correction in emerging markets. >> first of all, a lot has been priced in already. it has been ages appointing year. back, we still do like emerging markets. should keepestors an eye on them. issue isay the bigger ingt we have had this ris
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tied for a long time. a pundit liquidity from the u.s.. as that tied receipts, it is going to become more and more important to pick your countries in emerging markets and pick them well. tacklethe markets aware people expect tapering to continue. because we have had some difficult data to read into, do you think there is uncertainty in the market? >> i actually do think so. i think there'll be volatility over the next coming months and quarters. i think it creates great opportunity to pick specific countries. some are going to be really foldable. i put turkey and south africa in that pocket. others have sound economic fundamentals are out mates with policy decisions. i put mexico and maybe india in that pocket. they look attractive to us. >> tell us about japan. we talked about two months ago.
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the little bit disappointing? >> clearly, market performance has been disappointing. i think a lot of exogenous been at play. historic japanese equity has always been at issue. what you've seen in this year is heightened risk aversion. that is bad for japanese equity markets. however, we still think this is a great position to have any portfolio. we believe that the bank of japan will stay on an easing stance. therefore, we think japanese equity markets continues to be a great position to have. >> what is your equity -- richard take on the equities in europe? race amonginly a high street retailers. people want value. it is quite important to position yourself. >> when you look at their earnings season for europe, i would say that the fourth quarter came out relatively in line. revenues were a little bit disappointing, but you had some great operating leverage. that is quite encouraging. 2014, it lookst
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pretty weak. you have exogenous and the mystic factors. regional emerging markets are bad for european equities. revenues are coming from emerging markets. the other thing at play is a strong euro. actually, this is something we are concerned about for european corporate rate when you look at ison a trade basis, the euro at an all-time high. this is a real concern for european corporate. taking a step back, we are pretty positive on european equities because we do think that chance for emerging extension is very attractive and it doesn't exist in the u.s.. close look like positive. it is a great market for stock pickers. and got aay we talk new ipo or a new merger or acquisition. as a mean ceos are more confident about taking risks? as equity grows, the fundamentals mechanism of stocks are not really
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working to the full extent that they should have. >> actually, this is a critical point. you had a lot of cast on -- cash on balance sheets but the inability to spend the cash on growth for two different things. the missing link has been ceo confidence. we are absolutely seeing that turn. the ones we like are poised for growth, the ones that will be engaged in m&a or the ones x.gaged in catholics -- in caf you know that investors are rewarding companies that are investing for growth. katie, thank you so much for your advice. we'll be talking about her latest report, giving credit where it is due next. coming up, richard man is avoiding the u.s. and setting his sights on china. offill look at who's mine
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new strategys coming up. ♪
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, i'm francinek lacqua here in london. "on the move."
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we went around the world in six minutes before. i want to talk about your reports. this remise middle bit about something from 20 years ago. you propose to close a credit cap. you need to give more credit to s&e's.owned as& >> we can elevate the performance of those nature and -- of those nations if we support women. >> some of the graphics to find her fascinating. the way it will pan out in the next 15-20 years is there will be less of a gender gap. currently a very big gender gap in employment or do want to close that gap.
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powerful way we can go about doing that? we found that supporting female workers in small to medium enterprises was important. we identify the credit cap, which we found to be $300 billion. we did some work to say that -- gave women access to the capital it very much needed. how much could that contribute to growth. we found that income per capita be raised by 12% across the developing world if we closed that credit cap. >> women take less risk, they're more conscious with the money, or because the spending power? >> the reason they don't have capital is because her lots of legal and regulatory barriers that access -- to prevent them from accessing capital. 90% of them had at least one legal gap. course isissue of that banks don't have a lot of
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credit history on women so they are reticent to make those loans. what do think about the power of the purse deco even if they don't have access to credit loans, they will choose and spend the money for the household. >> --nd -- intoey will invest back their families. they will buy things like children's close and pay for school fees. that is a double dividend. that means growth will be even more impacted than we think. i which is highlighted here that we were talking about emerging markets before. these are countries that are growing below trend. they literally can't afford to perpetuate the barriers that face female entrepreneurs. >> this is for banks but also for countries and governments. >> absolutely. we will solve this is not going to be any single institution, it will be corporation across a not-for-profit sector, the business sector, and of course government will play an
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influential role as well. >> thank you katie for coming on. the pulse is coming up shortly. we'll be talking about the malaysia airplane. interview coming up. >> they will be spinning off the retail and more business. this is an exclusive interview. looking forward to hearing what he has to say about that set up where he will be listing the reasons for those listing choices. all of us will be interesting angle to pursue. basht is take, as well as on what is happening around the world. he's pretty well plugged into that story, too. then we will talk to the boss u. we will bef rok talking to him about the development of this industry.
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we are seeing massive consolidation in the cable industry. we saw that yesterday with vodafone. google is getting in on this story. you have amazon getting in on this story, where does rookie sees biggest advantage moving forward from here? been talking about copper and then about what happens in that u.k.. president putin speech coming out of moscow as he tries to address some of the issues an outstanding questions surrounding russia's policy toward the crimea. how much are we going to learn and how much will you reveal in this game of poker that he seems to be playing. we will do all of that during a slightly extended version of the pulse today. back to you. next of course, the vladimir putin speech will be one we will watch very closely. has boughtchest man
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shares in apple and facebook. bloomberg billionaire editor has all the details. monopolys behind his strategy? >> is been very smart about investing from commodities exports. metals has not had a great run. we did a story back in 2012 how he's a jew and other billionaires residing. he moved away from commodities he did a lot of u.s. tech companies. you can look at this as profit-sharing, taking profits from his investments. it seems a good time to move into chinese tech companies, because they are in the spotlight right now. -- he is notright russia's richest man for nothing. what we know about him. >> he was born in uzbekistan. he worked for gazprom invest. it was early in vladimir putin's
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clinical career. he became close to vladimir putin. he is an investor must have cut his teeth back in the time. he built his metal fortune to acquisitions and cobbling together what is now russia's largest iron ore producer. >> it seems almost telling her not, but he is cutting out of russia at this very crucial time. into itcertainly read concerning what is happening in crimea, it is difficult to say exactly why they made this move. it will close to him at whisper to us about 18 months ago that they were -- people close to him have whispered to us about 18 months ago. china has a lock -- these companies have a lock on the chinese internet market. western companies cannot get a good hold on there. it was a good time to get in.
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>> rob, thank you for all that analysis. >> final thoughts for "on the move" are next. ♪
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>> welcome back to "on the move. " >> jonathan ferro, we have a lot of news regarding president
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putin. company posts 26% growth in sales and plummets that much? one that has really exuberant views from the market. the market wanted to see 35% increase in sales. it is eating into their sales when they convert them back into the british pound. overall, this is a company that is still adding customers. 8 million now. think it is% or it a bit of exuberance coming out of the market. >> we know that vladimir putin is addressing parliament and just a couple of hours. two hours from now. of itre's always the risk escalating. everyone to diffuse the situation. nona stepping up to do that just yet. everyone is waiting for putin to do that. if he does remains to be seen.
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>> thank you so much. back withn and i are "the pulse." we have an exclusive interview coming up with mohammed alomar. he is the chairman of si properties. ♪
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crimean makes a case for joining russia. the bank of england gets a major refund. tallestan behind the skyscraper in the world joins us this hour. good morning to our viewers in europe. a very warm welcome to those just waking up in the united
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states. i am guy johnson. >> and i am francine lacqua. this is "the pulse." >> a battle for your living room. we're going to check out the business of broadcasting with oku. eo and founder of r >> president putin takes another step towards annexing crimea. tell lawmakers today to accept crimea as a russian territory. >> we have bloomberg news in moscow. on the speeche that is happening in two hours in front of the houses of parliament. the main news has artie broken, that putin does support the
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annexation of crimea and its entry into russia. that is obviously the key piece of information. the ruble is feeling uneasy today. it is trading weaker on the news. the eu and u.s. might step up the sanctions. yesterday, the sanctions were announced, a freeze on some individuals. rallied on those yesterday. today, there's concern that the eu and u.s. will not let this go and will step up their efforts to stop russia in its annexation of crimea. worried are market participants about much tougher sanctions? market participants are not that worried judging from yesterday's rhetoric from the you and and u.s.. u.n. and u.s..
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him -- gasp rum and others. obviously, bank of america today came out with a note saying they're not expecting a sanctions war because the u.s. the eu eu -- and realized that russia could respond with sanctions of its own that could damage the european economy. >> thank you so much,ksenia. >> david, how are we expecting eu read -- eu leaders to react ? putin's latest step >> ethically can get a fairly good idea of the tweet that we
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got. it is condemned the action. european leaders are going to be very much focused on what mr. putin is going to say in his speech in a couple of hours time. he may also lay out his demands for highly sees a future revolution of the situation -- the future evolution of this situation. the ukraine should remain neutral militarily. that means absolutely no chance of joining nato. russia also wants to see ukraine coming about as a federal state, with probably more autonomy from the region and with reinstitution of russian as a second language. you might mention all of this. you might want to know about the association agreement. heard a report that the eu enlargement commissioner was saying that the association
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agreement is only the first step , but really one of the big tools that the european union has got in order to change the situation in eastern europe. the ukraine actually joining the european union. we really want to listen about what he has to say about any of those issues. is slated toe become the next ground for testing of wills. initiative of putin is focused on ukraine. also, i think it will be interesting to see what happens in some of the countries around ukraine. for example, moldova. the head of the trans-industry actuallyre, it has asked to have a law in russia so
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that it can join the russian federation in 2006. disciplineparty shows russia. nothing ever happened there. there's also something happening in that area, as well. i might just quote you. the romanian president says that putin's objective is to ,e-create a former soviet union and close of the black sea in the borders of nato. it all -- they are all areas to watch. just a reminder, we'll be taking president routine speech with a translator, coming up at 11:00. >> now there's a shakeup at the bank of england. carney is talking about major operational changes tonight in london.
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the nextgoing to be deputy governor, male or female? >> i think the one question everyone is asking is, will it be a female. how hard is it in any female any top position at the bank of england. quite hard, apparently. all five appointments to senior positions since then have been man. big pressure on george osborne. >> we have candidates. lucreziamber one is if you look at the take a look ate spencer dale, he is 15-8. they might actually name a female to the position. >> carney has made it everyone
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feel that the ratio was wrong. >> suspicion is that the candidate will not come internally. there's more talk about a fourth deputy governor. another financial stability, we may get links to markets and banking. who needs more italians, seen? >> i would argue that we have enough italians. >> at think that argument is well made by those onset right now. >> i am going to go to that speech. that sounds interesting. caroline hyde joins us now for more details.
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>> they were down one and one percent at one point this morning. why? gross inhey posted 28% sales. what company could possibly give you that stellar growth and then plunged to the depths? analysts are saying that we are just seeing a tempering of growth from the giddy heights that we saw back in christmas. analysts have wanted to see a 35% increase in sales. they got less than that and they got 26%. perhaps not boding well for the fiscal first quarter. international sales were weak in particular. russia, australia, both seeing weakening in their currencies. slip that back in the british pounds and your sales are really dented. still, there is growth coming asos. maybe that is why we see such volatility.
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with a company that should be with roundabout maturity, we still see sales up more than 20%. as a company that showing it can really move some markets and still improve in the u.k.. >> ,aroline, speaking of growth what do think of sainsbury. ? >> the cf oh told us the very thing. >> we absolutely have the bandwidth to create very aggressively on price. that is certainly what we will intend to do. >> they can compete aggressively with who? it will be more send flinging one billion pounds at reducing prices. it has been hitting sales in terms of the discounters. also, some poor weather. 3.1% for the last quarter.
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easter coming later. they have dented sales as well. sounding pretty optimistic. they think they can outperform their peers, even in this very challenging environment. left, his king has new designate has some tough work on his hands. back to you. >> verlyn hayek, the very latest on the troubles facing the high street. >> what are we watching today? the search for the missing malaysia air jet. it is become the longest in commercial aviation history. investigators are looking at the possibility of that suicide. that is just one of the news out there. whoever was operating the aircraft went to great lengths to avoid being detected. we will bring any breaking news that comes from that. from french --d
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france. taxes, cuts and spending. that is according to one of his advisers. he says chinese companies now account for 80% of their foreign investments. this take a closer look at change in strategy or later in the program. >> up next. the rubel revisited. we will discuss the impact of the current market status. ♪
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>> welcome back. let's return to the international standoff over ukraine. you a residentg putin speech live and fully translated. he is expected to tell lawmakers to accept crimea as a russian territory. to discussn hardie the effect on markets. john, when we look at the rub downthere's a long term trend that was established before the crimean crisis really got to the top of the news cycle. to what extent has this
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accelerated a move that was artie in place and to a certain extent will it bring it to a conclusion a little bit faster? >> the family the situation in the ukraine serves to drive the bulk of the weakening of the rub le here. if we see number escalation, i would see the current city strengthening to some degree. it would dry up and possibly even reverse. that is my view. the question is in the risk is that there is the risk of further escalation. eastern ukraine etc.. the probability of escalation. the problem with the currency is that it has lifted the economy. -- as had a direct in direct impact on the economy. of things being
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significantly cut because of the russian ruble. over the last 10 years has been raised in london by russian companies in terms of bonds and loans. there's a huge to a business there. i have no way to assess the geopolitical risk here in terms of the risk of russia rolling across the border if it sees too much unrest in each new canaan. in -- in eastern ukraine. now thatve called down the crimea situation seems to be accepted as inevitably falling towards russia. >> john, what is the sensitivity of the central bank to the weakening russian ruble? how old the bank the playing it? is her steady depreciation, will the been accelerated depreciation? i think the banks will react to the scenarios?
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growthes against a trajectory. what is destroy now? -- what is the story now? people are positioning their portfolios for the event of sanctions. of there is a question sanctions actually happening. it becomes a question of the ongoing tracking uncertainty of what happens next. i suspect the bank has had to absorb a considerable deal of pressure and is likely to use reserves to keep the russian ruble from going even further. further escalation situation, actual sanctions coming about that interrupt energy trade with the eu, i'm not thinking these are high probability events, but they are possible.
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onjohn, what is your target the russian ruble in the next couple of weeks and months? >> i would expect a slow weakening in that dollar/ruble rate. if we do see any changes, it will be hard to predict the target. if we do see no for the situation and we seem to be moving toward some diplomatic , or a very nonconfrontational approach, which i have yet to see signs of, i can see the rubel moving back to 35 against the dollar. hardie. we will be back shortly to talk about the fed and the ucd. >> is time for today's pulse number. his number of the world's highest skyscraper in feet.
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us this hour joins for an exclusive interview. ♪
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>> you are watching "the pulse." stocks are under pressure. let's find out what is going on with jonathan ferro. >> this is what it looks like. equities lower once again.
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the cac 40 down by 1/10 of one percent. vladimir putin is doing exactly what he thought he would do. what happens next remains to be seen. it is all about one thing, escalation risk. money going back into the japanese yen. the dollar yen below 102. this playing out into the ruble as well. up for you by 7/10 of one percent against the rubel on the day. as is a record high for the dollar ruble. a record low for the rubel itself. with the veryrro latest. john hardie, let's focus on the fed. yellen's first policy meeting as fed chair today. not expecting a change in the message, it is just in the way things are explained.
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yes, i think we have his whole embarrassment over thresholds we have established. now we are reaching unemployment rates discrete threshold when [indiscernible] will reach their lowest thresholds. expectinge market is this. also expecting a $10 billion taper this time around. >> is going to take a lot to knock the fed off that track. why is the euro would trading in the high 30's when it is pretty clear that the fed is going to be hiking rates well before the ecb? >> i think part of it is the fact that the market looks for more dynamism from the ecb. more concrete references to actual tv.
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it doesn't come out of the press conferences at the meetings with draghi. outflows fromrge the dollar. it could be related to this ukraine situation. fed is allowing a huge drop in hundred thousand dollars -- in $100,000. that could be one reason for this rather weak dollar here at the end of the year. >> he should have done something already about it. to see.ll have as i said before, to really cap the euro and get it driven lower, we need to see the fed resting up the taper and reducing its balance sheet expansion faster.
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and, we need to see the ecb moving towards qe. >> john, we will wrap it up there. thank you very much indeed. coming up, our exclusive interview with the man who is going up this building with his car. [indiscernible] >> will be interesting conversation coming up. in the meantime, follow us on twitter.
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is@flacqua. we will be back in just a couple minutes.
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>> welcome back to "the pulse." we are at bloomberg's headquarters in london. >> i am guy johnson and these are the top headlines. hevladimir putin says supports the breakaway region of crimea to join russia. president putin addresses the russian are limited just a few hours. >> george osborne is about to name the deputy governor for the bank of england.
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the lack of women's top jobs at the central bank is of concern. >> other candidates are also being considered. >> to search for the missing malaysia aerojet has become the longest in commercial aviation history. officials say whoever was operating the aircraft went to great lengths to avoid being detected. there are some theories about a fire and taking out the fuses. we will get a press conference for shortly and we will bring you headlines as we get them. gaining even as we speak about this. jonathan ferro has been looking at the carbon crunch.
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>> this is what happens when you set the bar really low. beat on the revenue side of things indeed on the dividends as well very much higher than anyone anticipated. the bottom line is, this comes down to a copper price so is weaker last year there the year before. he averages just over $7,300 per ton. year rather,this use it averaged a little over $7,000 a ton. this will bite them this year. receipt moved lower by 11% earlier. ongoing concern about china, but by and large they are seeing stable prices here. >> obviously, he's looking at china. this accounts for 40% of global demand.
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on the demand side, there are a couple of bright spots. is for the power industry. of thatuld support some demand for copper. on the other side of things, bigs light of that demand comes from housing. if you're going to carry on building a load of houses. you will need copper. how much demand with a be for housing then. how much demand would there be to build as big tall high-rises? >> jonathan, thank you so much for that. china,want to look at look at copper. that is why he's a little concerned about the prospects for china. talking to guest later on to give us some more insight into what happens next. now, companies and government agencies and government agencies in u.k. are struggling to
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talented security experts. in national competition is being the next four the u.k. is under attack. this last line of defense, these 42 mostly men tapping away at keyboards. not quite james bond. security experts say the threat is real and the u.k. is under resourced. gchq, britain's highly in anversial agency is alliance with business and police to recruit the best computer minds. after a year of competition, the final game is being held here in
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winston churchill's world war ii bunker on the streets of london. it u.k.ridge works for telco bt. they handle every financial transaction in the country and are one of the event sponsors. difficult, sometimes impossible to find the right people. >> for the contestants, this is serious business. gchq agents who we catch on camera, sit over their shoulder, marking their skills and judging their leadership. then the team has to go for an .ntimidating panel the winner was 19-year-old will shackleton. he studied at cambridge university and just got a job at facebook.
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>> it can lead to a job in future. >> the new heroic face of a very 21st century threat. angus bennett, bloomberg. >> we were expecting appointments. we have two. dothe key thing is that we have a female being appointed as a deputy governor. ben broadbent is stepping up to be a deputy governor as well. this just coming out from the treasury within the last few minutes. that is a very good point. his father was a big-time politician two deputy governors of for different roles or defined industries and they're looking into.
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>> we have a speech coming up from the governor, mark carney. >> shares of mr properties jumped the most after the developer announced a share sale of its retail subsidiary. the sale could be worth nearly $2.5 billion. joining us now for an exclusive conversation is the property .hairman mohamed al a bar gives a sense of why you think now is a good time to start listing. >> if you look at the local market and the uae in general or growthdle east, i think is five or six percent hairdos stable organization that we have and are most business. the growth is more sophisticated. it is a good indication of what
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might happen in this company. the local market is in good shape. london is in good shape. it is the right time to take some money back from shareholders. back.take some money >> is there perhaps not enough liquidity in local markets? >> the local market has a lot of liquidity. it is our duty to our shareholder and our brand that we carry that we need to be out in the international market rate i think that is part of the long-term strategy of the company. we built the ship with international investors. >> could you disconfirm where you are looking? is a bit london and dubai. be london and dubai? ules arethe ro
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aligned with international laws. you're hoping to get this done by mid-summer, which starts at the end of june. >> it is a lot of work, but i hope we can do it before may june. that will give us plenty of time. i hope that the team moves on and get it done as soon as possible. once you announce it, shareholders are excited to see >> thehe market exchanges -- in the last couple years. shares markets are roaring at >> a new ipos coming through. -- much longer do you think how much longer will those be
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open for, though? ofif you look at the size liquidity that exists between asia and the middle east or even in the u.s. and europe. is [indiscernible] for my views. it depends on what you're coming to the market with. if you have good product and good fundamentals of the business, you are doing well. we've gone through a horrible six or seven years, other companies are much better shape on their liquidity is also available. >> why london? >> we have some great companies and i guess it is very high and and luxury focused, which is exactly what dubai lists. internationaln market for our customer and clients. like healing with
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london. the reputation and dips. do businessasy to for us in london. >> commercial rents were up 22% in 2013. his 2014 going to look similar, do you think gekko >> the numbers are looking reasonably good. cash flow is looking strong. pick performance is also looking strong. we think that 2014 will be a good year. i think 2015 on what will be very strong years, mainly because of the accounting standards in which we do a lot
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of sales. -- onese, our backlog sees properties are delivered, which is a good 24 months or so on. can i extrapolate out to that point and say there's going to be an awful lot of capacity coming on in dubai during that. an awful lot of construction. up until that point, you really have your work cut out for you. it is pretty good for the bottom line. >> my views all along that dubai dubai is 2020, because growing so strong before the announcement of 2020. it will validate the city and give you the confidence that this is a city that is
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recognized by the world as one of the main mobile cities to serve the region, africa, the middle east, india. i think it will be a lot of activity in the city. expectation that maybe just a typical growth of the city of dubai cannot be sustained unless we move a little faster. >> other any other units that you're looking to ipo at this ? >> believe it or not the market in egypt is quite good for us. we believe that that years coming forward are good. we're getting that worked on. we started work in our hospitality division. maybe we should delay for a year or more. >> mohammed, you're pretty
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plugged into the global markets. i believe you can see that was some degree of certainty. what you make of what is happening in london and new york at the moment. prices seem to be ever going out. you kind of wonder where this all ends. what is your take on this, particularly given the exposure you have had in the last two years. look at london, this is a global city. number one. i think everybody makes a little bit of money once piece of new york or piece of london. that is why the supply is quite tight. keeping in mind, the supply is tight because he cities are well built. the other element is that people who look at real estate as currency. there is a lot of money going into real estate as a reserve currency. environmentsstable for such investments.
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that is why new york is doing well. that is why london is doing well. see some of that effect coming to dubai as well. >> you seem pretty optimistic. you seem pretty optimistic about real estate throughout the world. was the one thing that concerns you the most. it is or something in a world economy or regionally that you are unsure about? >> keep in mind that the whole world is going through critical issues, whether it is what is happening in the middle east, the instability that is happening out around or what is happening in turkey. we have to do with all these facts. we have gone through a very difficult seven years where i think the banking system have learned, businessmen have learned. we think that government have also learned, a lot of liquidity
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available. withnies are working ethics principles and governments. the world has to move on. people have to live. people have to move forward. if i'm optimistic, because we have been quiet for so long and market indications are really good. the fundamentals are really good, of course, certain markets are better than others. we are affected by what is going on in turkey. we know for a well was going on in istanbul. can we handle the pressure that is going on on the ground? yes we can. much for joining us today. we'll have to get you here in the studio in london. >> still to come, shakeup in the bank of england. we'll bring you more on that breaking news when we come back.
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>> welcome back to the pulse. we are live from bloomberg's london headquarters. >> let's find out what the story is. jonathan ferro joins us for more details. created.le he is a deputy governor with responsibility for markets and banking. is the executive
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director for markets. this is almost upgrading his current position, calling it a deputy governor. female on the mpc. she will join in august to replace paul fisher. this officially means july has a seat taken. nematt do we know about shafik? >> she's very experienced. to some extent she will help tackle the gender issue. let's be honest, this is a very political thing as well. finally they're pretty female in a big job at mpc. it has been a long time coming. england is now quite silo and parody of this section doing this. in this section doing this but.
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there is not a lot of cross fertilization. i have heard one description that it started to look like a real bank, and investment bank with things of are integrated. you also have these four heads that report to one man at the top and things get more streamlined. so much.thank you jonathan ferro with the latest appointments at boe. >> we will discuss the rise of streaming tv. stay with us for that interview with the founder of ropku here on the pulse. ♪
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welcome back to "the pulse." we are streaming on your phone, your tablet and >> where else do we need to be casting our attention? david tweed is in berlin. caroline hyde and jonathan ferro are here on set. a lot of news from the central bank. janet yellen, first time in the chair. >> meeting starts today. everyone will be talking about forward guidance tomorrow. the euro-dollar need something to happen. a couple look out for of things. the summary of economic
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projections. the forecast for growth and for those little dots when those officials at the federal reserve see the -- think the first rate hike is going to be. start of be around the 2015. that could be interesting. >> we are also watching president clinton's speech at parliament in about an hour. >> this is going to be an absolutely crucial speech. he is not only did we talking about the accession of crimea to russia, which is hard of a going to get're some proven how he sees the situation in the ukraine progressing. his demands could include military neutrality, russia being recognized as a second language. also, one area to look forward say.hings see had to is already agitating
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to join the russian federation. look to see what he has to say there as well. >> caroline, you're watching the 370.h for malaysia flight tounfortunately, you have analyze every aspect. the new one seems to be that people are really trying to it to grips. time that is passed, distance from any sort of naval base or airspace, and then the size of the area that they're trying to scale at the moment heard all of these four things are huge obstacles to finding the wreckage, if there is any. >> john, i thank you. caroline, we will continue to watch the story closely.
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>> surveillance is coming up live from new york. for europe, it is the second hour of "the pulse." what are we talking about? >> then we will be talking to the roku founder. ♪
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crimea will be a corner of russia, they adopt the ruble and set their watches to moscow time. malaysia fright 370 was deliberately diverted according
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to american officials and it's a slamdunk, the ncaa in last vegas will make money with march madness. good morning, everyone, this is "bloomberg surveillance." it is tuesday, march 18. joining me is scarlet fu and adam johnson. good morning. >> i am a little bit worse for the wear but here we are. in the u.s., we have a slew of housing data coming out at a dirty a.m. and consumer rises which the fed will be watching closely as its two-day meeting begins. porsche get hertz and out for earnings today. zew survey isit


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