Transcripts For BLOOMBERG Countdown 20140304

Try to keep it welcome to countdown. From spiraling into war. It is 6 00 in london, tuesday carmakers in your hope morning. Bloomberg reporters are standing to put their slump in the past. By across the world ready to deliver the stories that will start the that will drive we have an allstar lineup. Berlin with top your day. We are on the ground that the executives of the International Geneva motor show. Hotel. Uptodate. Ng you today sees a flurry of welcome to countdown. Diplomatic activity in ukraine. Russia continues its military buildup in crimea. I am anna edwards. John kerry visits the capital. And the imf begins its mission. And i am mark barton. We are following the latest ukraine will get 3 billion in financing. Developments in ukraine. The iv the imf will be in berlin, david tweed is meeting with the economy minister tomorrow. Live at the International Hotel. How the chaotic situation in ukraine had change the countries breakingstart with needs . Bad. Is pretty news. We are getting information from the biggest the trading supplier. That is coming through just now. Just getting the headline number. No we are not. The we are getting the earnings. The imf said it would like it raised by 30 . And the big news last year was the glastonbury completed do you think that right now in this environment, it is little bit radical . The Prime Minister said it was nickel mines to their empire. Amortization up by 17 . 13 point 1 billion. Super flexible. That is the headline figure. They announced in december that that the transaction is expected to generate cost savings as much in the presence of Russian Troops in ukraine, what kind of as 2 billion this year. Strain does that put on it will be interesting to see if that figure changes. The headline profitability [inaudible] figure out. The level of uncertainty is 13. 1 billion. All around the country. Russia continues the military the conditions are pretty nervous. Nowsday of last week, buildup in the crimea peninsula. The u. S. Secretary of state with the presence of russian visits. Bloomberg news learned that the more money . Ukraine will get 3 billion in financing as part of a new i do not think we need more program. Money. They will be meeting with the economy minister tomorrow. We said down with the minister. Started by asking how the chaotic situation in ukraine had the Prime Minister said some changed the country needs. The state of the economy and money would be diverted to the military. The state of the budget is underfinanced for a different. It will be the same. Long time in the past. Hopefully, the criteria will be different. Theyve said in the past they would like it raised by 30 . We need to look at that. Do you think in that the basic expenses should be environment that is a little bit covered by the ukrainian state. Radical . And then there is the gap. Cutting the budget that is if we repay all of the debt it is ad for this year, another thing we would like to do. It is super flexible. It is. Geo from what i hear from the ld, from what i hear from we need to create a little more certainty for the business. There are Russian Troops in people are talking about this the ukraine. Increasing the impetus and the what kind of additional train does that strain does that it strengthens your hand put on this . There is a level of with the imf. Uncertainty all around the country. We did not invite any type of the conditions are pretty nervous. Troops to help us. S is thesense i thursday of last week you could thought you could do x. International community is more prepared to help before they frankly, i do not think we were for Russian Troops arrived. I did not see the delegation need more money because of Russian Troops. Yet. It looks like we will see them i think this is the ukrainian tomorrow. Business. Lets cross over to ryan. This is not their business. They said that the money is being diverted to the military. We know the imf is in town. That is true. What else is on the agenda today the military was under finance for a long time in the budget. . As far as the Russian Military is concerned, the if we will turn to the asernational community buildup is gathering speed. We had more troops rolling into crimea overnight. Russia has 16,000 financing for the army, then what is this all about. Then there is a gap. Troops on the peninsula. Seething we did not materialize, the ukrainians told us the russians were demanding the gap is that we know our debt obligations. Two ukrainian vessel we also know the reserves that it was left surrendered. They had been given an ultimatum. The ukrainians did not surrender virtually with zero. And there was no military action. It i a geopolitical problem. Clearly, the buildup continues. The United Nations met in new from russia,ear york. What the pressure have to say . The world says, yes, and this is it was all about did russiaon what a problem. People are talking about this have to say . Increasing the impotence and the it was all about justification. Need for credit. Ambassador to the united it, in a way, strengthens your hand. We wish that will happen. Nations showed everyone a letter to that effect from the ousted need any hint of president. Friday, you may remember he gave troops to help us negotiate. But your senses that the a press conference in russia where he was asked whether he was calling on president Cl International community is more prepared to help than they were before Russian Troops arrived. I do not see the delegation yet. I will see that tomorrow. Putin to intervene and he said no. They doians also said i will judge then. Lets get over to ryan who is have the right to have as many in kiev. As 25,000 troops on the peninsula. What is on the agenda . We could see that number of secretary of state john kerry troops rise further. Thank you. Arrived. Ferro. S turn to jonathan they are right now, in fact. The biggest news was the news he is here to cover the market that came one hour away. President putin ordering troops reaction. Lets start with russia because markets are opening in the west of russia back to right now, erased almost half their barracks. Did some putin the losses of yesterday. Selloff pretty brutal military exercises yesterday. We saw video of him out those exercises. Yesterday, down by almost 10 . Out. Illion wiped those exercises ended after the russian president visited him. The fact it he ordered the troops back to the barracks is a yesterday will have hurt them and that is pretty significant. Formality. That is not what investors doubt. They got hit pretty bad. The ruble is down about one are thinking of percent. The troops being ordered back to at the the reserves left barracks were troops in crimea. Ed is not the case. Ukraine says that russia still has 16,000 troops in crimea and central bank at about 150 billion. Peninsula. That is quite a burn rate. The tide against them is pretty more are arriving overnight. It shows you how sensitive the strong. A lot of focus on russian story is and how sensitive the markets right now, but the markets are to what is happening in ukraine. Thank you. Economy has been weakening for a while. We will check you later. Looking at the market you had growth around five percent a couple of years ago and it is down to about one percent right now. Reaction to those events in ukraine. Head nail on it is a difficult one because they want to protect their currency. The head. U. S. State Department Says they if you press rewind it, you get are working on sanctions in response to what russia has been doing. A visual on how things are playing out. A or he percent after is europes ability to agree to any type of sanctions limited by back three percent after drop. The trade realities . Gas. Ey import a third of yesterday were it is spring. Fighting with what was really escalation risk, political risk, we are coming off the back of one of the mildest winters since and the need to discount. When that happens, the following 2007. Day we see equities come back bustamante to heat your home in again. Europe. Manyther is stop files , things cane that stay choppy for well. Theres a lot of focus on what this does to energy prices. The european diplomatic response may be clouded or affected by analysts say this escalated europes reliance on russia. Political risk may cause this is not the first time we investors to boycott russia and have seen a lack of perhaps that is the ultimate sanction. International coordination. Theatre fourth motor show in if youre going to have serious geneva kicks off today. The fourth motor consequences it is worth thinking through what they are beforehand. You have not done the ee you or the United States on board. Show in geneva kicks off today. Gets a third from russia. 12 months ago, this industry how much leverage do they have . There are two points of leverage. Still felt like it was on its knees. A glimmer of hope emerging. We have seen the data start to inventory is one of them. Turn around. Europeans are buying cars again. We have not seen them for quite european stockpiles are some time. Halffull. The industry will be keeping a careful eye on the situation in russia. Them 45 days if the , soe is some exposure european supplies were interrupted. Theyll be watching for anything this is a fastmoving story. That could upset the apple cart. It would be hard to commit to a they certainly hope direct and in the market just yet. Geneva kicks off today. That is not the case. Optimistic about 2014, the big question will be, is this recovery selfsustaining . As the european car market shows will we see this continuing on signs of recovery. Good morning. An organic level . Should Geneva Motor Show revving or is it being generated by government subsidies . We know the data has been driven its. By cash for Clunkers Program the sound systems are being cranked up here in over to my coming out of spain. Left, they are in the process of another Program Starts will unveiling a new product. That demand continue . Or have we the brand is back. It is a bit like a cs500. Been borrowing forward . Plenty of new cars to unveil. In 20 minutes time we will have a toyota. Went to of things to talk about. Technology is front and center lets see what it says about the here at the Geneva Motor Show. Emerging markets and what the story is there. Everybodys hoping the recovery this resembles something more of continues. We have been hearing from ryan pileshn, there are a few ces. Are we going to be talking on the horizon. The russian situation is about, i am driving and android something at the car market is car . Exposed to. The the luxury market to that is something we will look forward to in the future. Massmarket producer, they have skin in the game when it comes the financing story is there well. To situation in the ukraine. We will be talking to the ceos one of the Success Stories of the European Space has been the throughout the morning about u. K. Market. That. The key thing about the recovery is that europeans are beginning financing packages available in to buy cars again. The u. K. That are not available elsewhere. But it is for a very low base. Rollean carmaker start to , or is itsustaining those programs out, without help demand . Something that is being driven, willll that help demand . To excuse the pun, by Government Programs . Be talking about the green agenda. That is what we have been seeing in spain, for instance. Making their cars go then theres a story about finance that is doing the further on must and making the rounds. The u. K. Had good financing cars cost less, that continues packages. That is why it is one of the to be a big story. The numbers are starting to get outliers. That her, but Car Companies are still struggling. Britain has been buying cars. Better, but Car Companies had good financing packages. They started to roll those out are still struggling. Across the continent. Ryan was talking about russia. I will be talking about cars. Toare going to be speaking ford coo mark fields. We have some great cars that will be out later on today. We will get his take. Ofll be talking to the ceo this is one of the worlds biggest carmakers. It has exposure to all of the rollsroyce. Stories. We will give you the first look in the future, will we be at this. This is the new ghost from driving and android car or an rollsroyce. Apple car. Looking forward to it. That the motor show buzzing. Should we be a geneva or at the live from the Geneva Motor Show. Technology fair . I was wondering what was under the sheet. That is the story moving forward from here. More coming up. Ill handed back to you. Stay with bloomberg for some really big interviews. Thank you. Hell be back in 10 minutes speaking to the head of live in geneva. Lets move on to the tourism rollsroyce. Just after this next break. Industry. They count for 250 million jobs. Later in the hour, well be it is a driver and barometer for speaking to the ceo of jaguar. Investors. Them toeed is follow the Tourism Industry accounts their gathering at the for over 250 million Jobs International hotel in berlin globally. Where the heads of the hotel investmentometer for industry get together once a year. David, what do you have lined up for us . Look, coming up after the and economic growth. David tweed is live in berlin break, i have an interview with sebastian. Where the heads of the global he is the chief executive. Industry get together once a year. Russianasking about the the world tourism report says business. Their business in Eastern Europe. After that, i will be speaking with the european chief the international Tourism Industry should expand by about executive officer of european four percent this year. Continental group. They are expanding into russia. How is the situation in russia likely to affect the comeback, after the break . That was before Vladimir Putin joining us from berlin. Moved troops into crimea. I will be talking about we will talk about mining for theto the ceo next. Intercontinental group. Both of these groups with 3. 67 dollars for the full year operations in russia. Last year. We will dig into those numbers. But will be the effect of their businesses . And potential trade sanctions and the slowing down of the russian economy. As well as that, ill be back with someone from brazil. Someone from the brazilian Tourism Industry that will talk to us about development and investment in brazil, how to convert the world cup in two longerterm sustained tourism in brazil. Is he ready or is brazil ready to host the world cup . Day, we will the be speaking to the guy behind studio 54. Hotels. Into boutique he will get a Lifetime Achievement award here. Thank you, david. Thee will head back to Geneva Motor Show and speak to the head of rollsroyce. Stay with us. Welcome to countdown. I am anna edwards. And i am mark barton. Lets head to the International Hotel investment forum. An exclusive interview for us. David . I have, indeed. One of the things that people are talking about is the recovery in tourism. 45 is what the World Tourist report as forecasting. That was before Vladimir Putin put troops into crimea. I have sebastian, the chief executive officer of 14 hotels in russia. 20 now. 20 now. You also have a hotel in kiev and property in Eastern Europe. I am wondering, given the situation, how are you dealing with this . I am a spectator, like all of click the Geneva Motor Show is a you. We have been in russia for the past 25 years. We have 20 hotels. Collection of the latest and youre going to be operating 30 greatest from the worlds top hotels over the next two years to four years. Automakers. Guy johnson is standing by with that means were going to go the ceo of rollsroyce. Next fewo 50 in the thank you very much. Years. It is a big morning for this has been through a lot of rollsroyce. Up and down. This car company is about to i will be there myself. I will be discussing this with unveil a new car to the world. My team. Strategic reasons, we will you will see it first here on bloomberg. Remain in russia. The unions, they are let me introduce the ceo of the company. Good morning to you. Talking about sanctions. The sanctions are unlikely to unveil herew car to affect the Hotel Business, one would think, at this stage. What is your assessment of the at the Geneva Motor Show. What is it . Effect on your business . It is the ghost series. I will be candid. It has been the backbone of our the ceo for the last growth story. Six months. I have enough to do in terms of it is a very important moment. Getting the team in place. I will let the politicians after five years in the market, decide what to do at that. Very stable life cycle, we have listener. A good decided it is time to refresh the car. Moment. Get to that but, clearly, this is not my agenda. You mentioned youre planning lets unveil the new ghost. To open 30 hotels in russia. Are any of them coming up . Here on bloomberg television, the first look at this car. Are you going to put any on hold, at the moment . Fantastic. This is an going on for the that is the first look. Past four days or five days. Talk to me about what your i willgo myself and aspirations, ambitions are for this car. Spend all the time necessary to make a rational decision. I just cannot make a decision for thecar is over the last 32 hours. Im interested in what is discerning businessmen in the world. It is the ultimate. Going on in china. Positioned we have right across the board we are hearing it. Not just luxury. The car. They are saying that even it is the best you can drive in. Funeral homes are having difficulty because of the we have some aspirations with measures being introduced. This car. If it proves to be over the next are you seeing the austerity measures having an increasing years in terms of growth. Impact on your business . In terms of political lets change years and talk constraint, not too bad. They do in some ways. Of little bit about what is happening in russia. You have some exposure. China is like russia, like america. Theyre very strategic. Russians like a rollsroyce as our brands to be visible much as anybody else. Presumably, you are keeping a careful eye on the situation. Are you concerned . To the russians and chinese. We have been for 55 years in the situation is china. We are going to remain. We will do everything we can to adjust to the economy. Sorted in a peaceful way. Is anything that might have yes, we are looking at it. Russia is a substantial market. Any impact on 2014 . Reasons,for business theres a big impact on that we are interested that the china. The local actors have been very whole thing comes to a peaceful end. Efficient, locally. Locks you are single you we just have to take a cold shower and understand that are seeing a lot of currency volatility. Locals may do things faster, if thats something you can maybe better than us, so why manage at a group level . Dont we work with them, as we are the bmw group. We are not too much worried. Opposed to compete with them . One of these great advantages to be part of a bigger group. The Chinese Market has been evolving for the last five talk to me about where years. When you came in as chief , you made a accor rollsroyce goes from here. One of the thing a driver decision to split the business. Expects if the service. I presume most of your cars are did that surprise a lot of delivered in a the spoke way. People in the market who were expecting you to sell some of your property . Why did you do that . For the last 40 years i have always looking into new been conducting to businesses without looking at the technologies, what we can do to differences. Up customers. Investor, you have it is an interesting subject, to look at the cost of the and we are due looking into it. Dollar, and look at how to get the time might come where we do spare parts in 3d printing. The risk remunerated. It is identifying the two even quicker to help our customers in the world. Businesses and making sure when you look at taking the people have the skill set. Business forward from here and. Or me, there is immense value you look at who you are competing with, it makes me lets make sure we can prove the think, you are not competing market. With other Car Companies, you a new journey for the team. Are competing with forms of transport at the upper end. It is going to be there for the how do you come up to us with long run. The market gets it. A solution . They do now. Not i would say we we had a lot of recovery. The share prices much more than what it was when i announced. Are in the highend luxury goods hours inough 48 business. For that reason, you need to treat your customers in a different way. November and december. Since then, it has been good. One of our major recipes for it is a matter of spending the customers inviting time with people and explaining to them that im going through a into our plant where we built fiveyear to 10 year journey here. These marvelous cars. What are the investments over once you have seen our engineers the next three years . , you are completely blown away which regions . Were going to open 750 and convinced. Hotels. That brings me to my final 25 of them are in latin america. Question. Your customers spend a lot of time with you. 10 are in the middle east and africa. They spend a lot of time thinking about the cars theyre europe is a great market for us. Going to buy. Europe is a market where we are expending less. How do you take that forward . What is your aim . Whenever wes that are you fully leveraging that relationship as much as you can . It is a very special moment when you specialize customize are the leading player, lets a rollsroyce. Remain and increase the leadership, seriously. It is great to spend half a day with us to do it together with we will still expand. In europe in five years from the engineers and designers. Today will still be 55 to 65 . As always in, europe is a key market in which life, you can improve. We have an enormous market share. For that reason, we are looking we are going to defend those. Thank you very much, indeed. Into additional opportunities to meet our customers. It will be very much interesting ideas and getge watching what youre doing. Their perspective about what is speaking with the ceo of happening in the car industry, their expectations about accor. Rollsroyce. We keep that close relationship. For your results that just basically, the whole missed estimates in london. Organization knows every well be back after a short break. Customer. Thank you very much indeed. The ceo of rollsroyce. Unveiled hereii right on your program. Its first annual loss since the foundation of the federal republic of germany. After a slump in electricity prices forced billions of euros in writedowns. Welcome back to countdown. I am anna edwards. And i am mark barton. Numbers that missed estimates. They are here to tell us a story. Did miss. Sales missed, actually by more than 10 billion. The actual net income for 2013 citigroup joins jpmorgan 3. 67. Chase with aorgan coalis a company raising production, raising copper decline in revenue. Production. Theyre going in a different direction. Contrarian . Trading results have been hurt is that the right way to describe it . By a slowdown down in the fixed income business. Over and took it reports on march 15. Back to the family. The australian Prime Minister that is been done to that end. Has ruled out guaranteeing that the qantas air lanes qantas they are saying theyre going to airlines. Get more costs, more synergies, and that is what the market is last week the airline announced heto want to hear good 5000 job cuts and the delay of sale of 15 aircraft. We will take a short break and here. Well be back with further coverage of the car and the hotel industry. Ear. A steep downward projector he. The benefits are being felt by the ceo. A man with every pocket. That is all i can say. Heavier pockets than mine. He owns eight percent of the coming. His bonus for 2013 comes out at 173 million. 182 million for laster. Thank you very much. And to with intercontinental of europa tv executive chief executive when we come back. Russia justified its intervention in crimea as legitimate response to a request from the ukraines ousted president. He wrote to Vladimir Putin requesting a military deployment. Russias ambassador read the at Emergency Security council meeting. Europe has about 45 days of gas storage to cover any disruption inflows from ukraine. I am mark barton in london. U. K. Gas prices jumped the most since 2011 yesterday. Rambutan has asked some of on concern the tensions between ukraine and russia may disrupt the troops to return to their supply. Japans wages increased for the bases. First time in two years in january. Companies boost pay for part Vladimir Putin has asked some timers. The Prime Minister urged companies to raise wages. Of the troops to return to their bases. Below, secretary of state john higher pay is key to bolstering kerry is having some meetings in consumption and driving growth. Russia. Welcome back. Is a bad proposition for germanys biggest power russia. Now is the time for them to consider whether they can serve company rwe reported its first their interests in a way that annual loss in more than 60 years. Resorts to diplomacy, as opposed that fall use billions of euros to force. In writedowns as power prices europe has about 45 days of slump. That follows billions of gas storage to cover any euros in writedowns as power prices slump. Disruption that flows from the first loss in 60 years, ukraine. Since german unification. We have boosted stockpiles. We knew that rwe had a ready taken we know theyre having there is concern and tensions between ukraine and russia may disrupt supply. To take the financial pain up front. Increase for the i told us about that number a little while ago. First time in two years in january. Slap at theone big fore was a boost of pay end of 2013 so they can move on, part timers. And they urged companies to raise wages, saying that higher to bolstering stay can recalibrate this company. A couple of other nuances in production and driving growth. Terms of savings programs. They are a year ahead of that. Loss, 2. 7eat big hello, welcome to countdown. Billion euros. I am mark barton. I am an edwards. That is down from a profit of 1. 31. It is called the recurrent income. The International Investment forum in berlin is where we go they are still sticking to their next. I have a couple of bits of guidance and this is important. You might not see them call the news to break, as well, from bottom of their earnings. Theyre still there, and they Intercontinental Hotel. I the chief executive officer Intercontinental Hotels europe. Are still steadfast in the guidance. We will pay between 40 and 50 lets start with the news you have to break for us. Of our income in 2014. What is happening . First of all, it is fantastic that is good if you are a shareholder. To be here with you. The savings plan is on track. To ber you to allow us we have more capacity. Makeg to work out how to part of the 200 hotel. 1. 5 Million People at the hotel. Sense of this. To me it looks as if they will it is going to be where you want take offline more than 50 additional. To go when you get to the city. We are thrilled. I could bore you with megawatts, youre going to be signing but that is the kind of percentage. Another deal in moscow. 50 more capacity out of the just a little more about that. System than what they had already told us. It is coming at a sensitive time. We just signed the holiday the whole german landscape is changing a lot in terms of where inn express. That is the second largest they get their energy. They want to get linn Energy Airport in moscow. Or renewal green energy or it it will be right outside of renewable energy, up to 45 of cc and d. B or production. That shows you the evolution of change. It will be a wonderful hotel for our customers to stay up. It is the part of the rush you are seeing prices, prices have been under pressure all year. Push into russia. Can you give us an idea of the Market Strategy . We have a key Market Strategy prices have been dropping by which is the u. K. , terminate, and russia. About 15 . That cuts profitability by up to the have a Significant Growth 30 . Strategy for russia where we want to have 100 hotels by 2020. The whole gamut of gas and we are well on our way to that right now. Energy markets reacting to the 100 hotels by 2020. Ukraine situation. Indexsias benchmark what is the Current Hotel number . 90. Jumped the most since september 2012. Investment. Cant that is after dropping 11 yesterday. How much money are you going to head ofoined by put in . We have significant partners in russia. Emerging Market Strategy. We are on our way to signing. We have and he is an art opening thank you for joining us. We are in volatile times. Hotels on strike track. The sizable declines, a slight themis is in the midst of rebound today, how would you expect emerging market assets to fair in the coming days and putting into troops in crimea. At this is the biggest security weeks . Is the appetite risk for Eastern Europe since the end of the cold war. How are your interests looking in russia at the moment . It is a serious situation for towards emerging markets have us. Been improving quite the single most important thing considerably since the days of is the safety of our employees pathetic since the days of and our guests. In fact, when the news broke, i panic. Called the manager at the intercontinental in kiev. Right now, everybody is watching the ukraine crisis and we need to find out how this crisis is we will continue to monitor the going to before we can be situation. At what stage do you have to make a decision about putting more comfortable. Any of your Plan Investments on very much a russian ice with regard to what happens story . With the European Union and the United States, both of which are talking about trade sanctions . Remember the days we will make those decisions of the syria crisis last year, when necessary. Right now, the focus is to grow it did create quite a bit of in our key markets. Trouble for emerging markets and the u. K. , germany, and russia. For Global Markets for a few weeks over the summer. And we are on track crude track. That has the magnitude of being you talk about the u. K. , reproduced here. Is there an russia, we have to watch it. Has the Russian Central Bank end to the european debt crisis . It shifted the court or what has happened since youve been chief executive for europe . A lot has changed. Most important, last year was a very solid year for us in europe. Corridor . All three markets, along with is there a floor under the ruble the key city strategy sits very loris there further to go . The ruble or is there well rated the most important that we saw is further to go . It depends how this crisis groups moving in the right direction. Was a business or tourism . Evolves. It was a general, overall that will probably not be enough. Optimism. That is not necessarily a floor, the gdp for 2014 looks like it is going up. But i would call it a moving target. The ruble is at risk. Unemployment rates are in a good place. How much should russia be prepared to spend in propping up the overall sentiment in the market is looking good. It is going in the right direction. Its currency . Russian reserves down 40 what segments are using that billion since last may. Reflected in . Almost all. When does it start to not look like a good idea . Leisure . Ure in lu means. Have the. They are in good shape. Leisure. Russia is not turkey. There is the rise of the new booking system. Turkey had to raise the interest that air b b and rates aggressively because they cannot not afford intervening, but russia can. We are talking about several other technologies are having him back on your business . , 10 million a clip, and our focus is to make sure the people will direct a bus. That would send a strong message. That is the single most does that mean we do not need important thing for us right now. And making sure that we have to see any more Interest Rate hikes from the russians . Great brands that deliver great i would favor direct experiences and continued to intervention then interestrate strengthen our brands in the guests mines. That continues to allow us to hikes. You can afford directly intervening in the market. Get direct bookings. That is really the focus. Getting them to love our brand , go longo you suggest and stay with us, and choose us. Ofyoure not seeing any part on the dollar . Against emerging market assets . Your business being damaged by this technology . We haveo be not at all. Technology can only help us. People want to use different to be tactically defensive on mediums to get you. Our job is to make sure that we have clearly differentiated in emerging markets. We are facing a highly volatile time. Daily named delineated im going to use the proxy in brands. Those cases, they work better as a hedge than the real thing. All six of the nine brands that we have are in london alone. That tells you that our brands it is at risk if we go into this are clear and guests want to stay with us. We heard you are selling real estate. What are your plans . Escalation scenario. I cant talk about that right toit is used by investors now. , theis a fantastic Hotel Express a view for the region as Intercontinental Hotel in paris. It had a record year last year. A whole. They are off to a fantastic start. Indeedk you very much that is a bit of an ecstatic trade, but it works really well. Exotic trade him a but it for coming to talk to us. It looks as if the Hotel Business in the Fourth Quarter works really well . What does romania have that is a cam. One wonders is it going to be poland doesnt . Sustained with the tensions from it is less vulnerable to russia and ukraine . Swings in investor sentiment. Only time will tell. Romania is more defensive than back to you in the studio. Just ahead, well head back poland. I would assume shorting against to geneva for a conversation with 40 coo mark fields. The euro will work just as well. The russian stock market does look ready cheap compared to other emerging markets. 4. 7 times estimated earnings, which is below india, brazil. In andhould you get an m buy . The russian stock market has been cheap for a very long time, so i do not see that do you think russian outflows will continue . It is a big risk. It will be driven by geopolitics. To buy for joining us today. Thank you for joining us today. We will head back to the Geneva Motor Show. It is time for hotshots, a look at some of the most compelling images for the day. The track cycling World Championships were in columbia this weekend. They beat germany in the mens sprint final. They had victory by just a will. Had a hat trick in the mens sprint. This is not your average food fight. A small town ordered 255,000 oranges from sicily for the threeday carnival. The battle of the oranges is the carnivals main event. It does not look like any of the participants are slacking off. One orange throwers had that here getting a black eye is like al. Ting a metal med time for todays company news. The air race championships are underway. Reported its first loss in more than 60 years. They push their airplanes to the the current net income was down edge in part one of and a part by six percent. City tour. Piloted to weave between and above thest 25 meters looking to sell assets in an effort to cut costs. Water at 370 kilometers per the Norwegian Energy company hour. Says it has no timeline or fixed goal for the sale. The winner from last year successfully defended his title. They plan to cut spending by eight percent. I can see you participating in that one. Samsung will make a 3 million donation to two charities picked welcome to countdown. I am an edwards. By ellen degeneres. An edwards. It is a thank you for her in show selfie. Anna edwards. It was shot with a samsung they signal that the region galaxy. Equities will bounce back from a welcome back to countdown. Big loss. Investors are watching the the worlds top automakers standoff in ukraine with overall are in geneva for the motor show sentiment that says markets are. Up eased somewhat good futures they are showing off their newest designs. Gained. We have a stock mover. Lets head to guy johnson who was on the ground. Thank you very much. The engines are humming at the rwe may be active. Geneva motor show. Another one to watch out for is we are warming up. Lets talk to our second guest of the morning. Swiss money manager. It had a fouryear profit. The thet of holding his wand watch. Numbers have held that group up. Oil rose yesterday. What this 2014 have an prospect . The carmaker is unveiling a yes. Series of new cars. Lets talk to the company ceo. A little brown all the stocks today. There was speculation and supply he has a small cold. Concerns were overdone yesterday. You. Morning, nice to see live a great number of exclusives, saying that this is the mildest weather since 2007. I hope you are feeling a little bit better than you sound. You are unveiling a whole series theres enough to cover future disruptions in europe. Of cars. Seven weeks . We have new jaguars, new land 45 days. There you go. Rovers. On the move in 17 minutes. What will that mean for the anna . Bottom line . We are really proud. Lets get to the things you whenever we come to a show, we need to be aware of ahead of the want to unveil something new. Trading day. In geneva, we will show five one is Market Reaction to the different new vehicles and show ukraine development, and the you a completely new [inaudible] trading around russian assets. Thet was seeping out across talk to me about what that will mean in terms of sales. Board yesterday. We are expecting a rebound. Or your predictions for 2014 . That is what were seeing in futures. You have been delivering a futures pointed higher. Fairly decent set of numbers. Can you continue to do that . Ended in western russia. It removed some of the 2013 was a good and solid escalation risks. Year for us. It exercises and is on schedule. Volume up by 19 . Perhaps it doesnt take them this year, we are cautiously much escalation risk away. Perception is everything right optimistic that we can continue now. To grow. You see the markets turning around. It is rather like yesterday in reverse right now. Theres a lack of clarity on we do not want to speculate what is going on at the moment in the ground as to what is happening. It is one step beyond what is russia and ukraine. Happening on the ground. We get some interesting it has been a big driver. Comments. Just like every business, how significant is russia . Really, trying to work out it gives is a very good sales whether what is happening in ukraine is material to the business. Theyre saying that ukraine immaterial. Re footprint. Russia is an important market, but we are not heavily exposed. They say that great export businesses are functioning. What about china . Ukraine will if china is one of our major markets, it is taking over the offer arbitrage opportunities there. On the markets will be looking European Union. At that. We have a busy macro agenda. Really busy. Signs of a slow, without should get a gdp target out of this. That will be interesting. Impact to you . Everyone is expecting north of seven percent. China will manage the issues. You have the bank of england on thursday. The gdb growth of around seven we are not expecting anything ofeight percent, the biggest from there. It could be very interesting. We have a stronger than expected the emerging markets. Cpi number. We have enough room to grow in china. Worked for rollsroyce, a lot of people spiking nothing from the ecb. I could send that out to bmw. People are looking at what they could or might not do. And friday is payroll. We have to take care of our 6 for 2016. T 1. Own. Yes, we are exposed. Lets talk to me about the marketplace. Suvs are your bread and butter. On thursday, that it is nice bread and nice butter, but competition will get i will buy you a pretzel. Fiercer. Verybody is launching an suv that is very good. Just ahead, we had back to the Geneva Motor Show for conversational afford 40 coo, piet going to be a bigger or a smaller slice for everybody mark fields. Going forward . We see an expansion of some markets. Show we at land rover have the technology. Technology is going to be an increasing part of every single car that is made. Everything the car does. Can you see a situation or i am driving a range rover android or . Jaguar ios apple car is it going to come to that . Tech companies are becoming Car Companies and Car Companies are becoming tech top pennies. Electronic architect are becoming tech companies. You will drive not only a solution, youever will have the opportunity to drive all of these kind of features in one car because the manufacturer will not decide which kind of device the customer will have. You do not need to nail at this point in terms of which company to go with. We are open to everybody. When you think about cars moving forward, the driver experience is very important, but there will become, time very shortly, google is developing autonomous driving systems. To yours that do relationship with the customer . The relationship with the customer will become even better. It will give us a totally new degree of freedom. It will make sure and autonomous and give ake care new social network. And we wille over have the new freedom. The Elderly Population will not be driving the car behind you . That ise debut special highperformance. It is fabulous to drive. Welcome back to countdown. The driving experience is barton. Rk still important. Thank you very much. Wards. M anna ed rover. Of jaguar land some great guests coming up throughout the morning. O righton with ford co guy. Feel for now. Anna, thank you very much, he is not actually getting behind the wheel of anything. Indeed. The oscars are over. The new focus is being unveiled at the Geneva Motor Show. More on the newspapers, coming in next. What is that going to mean for the bottom line in europe and the recovery taking place . Lets find out. Thank you very much, indeed, for inviting us in. The recovery in europe is starting to gain a little bit of traction. Their early days were feeling weak. On an organicble level. Is it going to need subsidies . It is great to come to the geneva show and talk about the market growing. That is a big difference. When you look at the elements driving the recovery, you look at things like consumer confidence, sentiment surveys, what is happening with gp in the various countries. We think theres a real organic recovery here, that we can debate how strong it is going to be. I think it is organic overtime. We expect the industry to grow this year, modestly grade modestly. , as you roll the new car out it changes the dynamic of fords piece of the pie. How much of a difference will it make . It is the number one around the world. We are using the show to make it better. It is fitting that we do it in geneva. We introduced it 13 years ago right here on this stage. And so, the new one has sophisticated styling inside and out. It has. It is more fuelefficient. And it has technology to make the customers life easier. It is important for our growth around the world. Our market share has been growing. It a group more than one point last year. This is important in europe and around the world worried world. Lets talk about this a little more. Future, am i going to be driving and android car, or i will will pick my car based on the operating system . That is the beauty of our strategy. We introduced sink on them s in 2009. He first model it is good that we are here introducing it again. Synch system you can or and ios apple phone android. Whatever the customer wants, we will be old to give them. What about the contract purchases . Some people saying that the financing packages available welcome back. Lets cut to the chase, it is have been a key driver here. Newspapers time. Standby. Lliott on any plans to roll that out across europe . We have david on standby. Do you see changes in financing options, and what kind of a boost you see for that . Part of itg is a big thatno huge surprise when a consumer is making a Prime Minister netanyahus decision. The most important part is meeting with president obama having a compelling product grid a product that they want to see yesterday. In the driveway. That their neighbors will come on and say, wow, that is the new board. Obama telling netanyahu that now ford. New fuel economy, safety, and is the time for tough decisions. Design. Onare going to keep focused the jerusalem post, a similar picture. Bringing out very compelling israels doing its part, the products, from the standpoint of Palestinian Authority is not. Design. Financing does play a part. It is very important to have a compelling product grid this is a more leftleaning putsal newspaper, obama product. They say, i like the product, but how can i buy it . Onus of Peace Process on thealk to me about netanyahu. He will be speaking before the main proisrael lobbying group before flying to allay. Situation it ukraine and russia and what that will me to your bottom line. What kind of exposure do you have . To los angeles. It is too early to tell. David, all yours. We are clearly watching the developments around the because im at the situation there. Hopefully, it will and peasley. Things will have to play out. Intercontinental, i thought i we do not know what will or may would go for an international not happen. Do you plan for this kind of newspaper. Thing . Upoverall, our whole process i have the International New york times. The first time is dominated i economy is to look at the russia and crimea and the Business Environment every week reaction. Intensively. But there is this little article that allows us to be very down here. Proactive. We have a Good Business in earthlychaplains offer russia. We were great partner. Assistance and it is all about were going to have to see how those chaplains in chapels you things play out. See in airports and sometimes we focus on the market long term. Clearly, there are issues and walked past and ignore. They have done a very nice in the short term. We will take appropriate actions article about the sorts of people who go there. To keep moving forward. It is a good time for us and the what is available . Overall industry. Lets rock the conversation heathrow, 190,000 toyota. Ng about passengers go through heathrow every day. There are seven fulltime chaplains serving five their tight not fuel cells. Terminals. They see that as the way forward read christian denominations here it forward. Slumpuddhist, hindu, jew would do you think the next leap will be . Elon musk is going one line. Word is ford cia going . Ish, muslim. Where are you spending your money . Industry. Great thank you. I have a story about art. Everybody is a point of view on property very expensive part of what is going to happen. London. Our point of view is to be some of the art dealers are prepared to give customers the power of choice. You have to know whether they want petrol and uses, whether worried they are being pushed out by some of the fashionistas. They want hybrids, whether they want hybrids or full battery vehicles. Are blaming some of the forre there were offerings large multinational fashion houses for pushing out them. We are working longer term until pushing up rents. Some of the art dealers have cells. Our approach is to give them the choice and have the been there for 200 years. Manufacturing flexibility to go wherever the market goes. I think were covering the waterfront in giving customers the story of the last the choice. Great to see you. Thank you for your time. Of ford. 0 of coo 24 hours. We cannot get enough of this. Live at the geneva motor how annoyed which you see if you were an official show. Photographer at this event . On the move is up next. The motor shows coming up. Luckiest person in the world the hotel sector in berlin. Has to be this man. Where are you . Big interviews for you. The brother of the winner of the the brazil Tourism Industry best supporting actress. Official. The unluckiest person in the world is liza minnelli. The countrys we will do one in one as well preparation to the world cup. 100 days of the world cup grade cup. We will see you tomorrow. Contribute. We are not shy of jumping on a bandwagon. That is the first hour of countdown. Welcome to on the move. And i am francine lacqua. Him himhim sink or so. We are seeing the reversal. Talk to me about the little corporal. Is a beast of a mining company. Into taken into back focus. It rises by 20 . He struck out all of the variation. It missed estimates. Indeedare a shareholder, eight percent of the company. 100 82 million from 173 million stop by to keep track with the russian billionaires under presse