Transcripts For BLOOMBERG Countdown 20140411

Standing by to deliver the stories that will deliver your day. More on the chinese Inflation Report. Any selloff on asian stocks. Following the renewed selloff in u. S. Tech shares. David is in berlin, covering Angela Merkels first visit to athens since 2000 wealth. 2012. Deb the latest, lets go to in hong kong. Morning, zeb. A down day across the asiapacific. The selloff in wall street precipitated it. The latest Inflation Numbers in china having an impact. Ofn we look at the data out china, inflation below the governments target of 3. 5 . There is the expectation that there will be additional stimulus rolled out, but markets are not taking it positively. The index tumbling. Lets take a look at the numbers. Down one percent. Japan, the biggest decline or in terms of percentage of value. Tech stocks getting hit harder. The story is in hong kong. China shares falling. The Mainland Chinese Companies listed down two percent. A very difficult week. , modestlyr index higher thanks to the hong kong exchanges. Trade afterge the news that shanghai and hong kong will Work Together to quaff great in terms of corporate who operate in terms of investment. A standoff stock in an otherwise dismal market. . 10, the biggest internet company, a key mover. Inflation numbers out of china maureen reed or two worrying. Consumer prices in particular. This suggests to mistake demand is not where the government would like to see it. In hong kong. Sincesdaq saw the most 2011. The tech selloff continues as the earning season gets underway. Little love for tech on wall street right now. The nasdaq down over three percent. Not just the nasdaq. The s p down two percent. I have picked out three companies, three stocks. Facebook, netflix come on google. They have all seen a heavy side of selloff. 26 off their high. Google, 10 off their high. Ncd steady falloff over the the last month or so. All three of those companies, all time highs for all three. He tells you where we have been the last couple of months. Valuations, what are they and how do they compare to the tech bubble back at the beginning of the millennium . If you look at the nasdaq and e ratios, you have to go back to 2007 to get the relations that high. Valuations were only 50 times higher than earnings. Notrelations not cheap, but as expensive as they were then. The temptation to offer shares in an initial public offering, with that dissipate because of the turbulence of the Technology Sector . We have been talking about the massive pipeline of theiries looking to exit investments. Richer valuations. A buoyant market. The perfect time to float. That would be a difficult thing to do. Look what happened to king digital entertainment. Which produces the candy crushed game. It got crushed, mark. This year, there has been a bubble in people of talking about bubbles. What we have not had for a long time is a healthy correction. That is what we are getting right now. The correction, the thing we need to know is, a correction of more than 10 the magic 10 . We havent had for over 500 days. Thanks a lot. Latest devices hit the shops today. They are available in Stores Worldwide today. The European Business correspondent is here with the details. She got her hands on them in barcelona. Issome some doing and samsung doing enough to remain the number one smart phone seller in the world . The galaxy s5, which goes for sale in 125 countries, comes loaded with freebies. A are not just starting a price war, they are starting a freebie or. More. War. You get linkedin premium. At least for fitness apps. Four fitness apps. They are miles ahead of the competition in terms of the sales. They should double the amount of phones apple did. They are still top dog here there trying to claim top dog. If you start to ebb or lose that. It is difficult to get back to number one. They expect us five sales to reach 10 Million Units and 25 days. That is reported for preorders. That is about a sixth of what they have shipped. Good going so far. They are willing to sacrifice profits to stimulate those sales. We saw their operating profit deteriorating. Samsung, recent earnings. Amsungs recent earnings. It could start off a price war. That is why they are offering these freebies. The samehone has Technology Like apples phone. It has more battery, a bigger stream screen. 30 minutes. That is the idea. They are being eaten in from the as the newe new kids in the block, much cheaper offerings. Theyfunctionality three have to stop the ebb of their market share. The slowdown and the pace of growth. Their shipments were up 44 last year. Talk to me about wearables. Is it part of the strategy Going Forward . How do they stack up . That is what is fascinating about the mobile world congress. They had three wearables they launched. All following from the galaxy gear. The first real stupendous moment of smart watches. There were some smaller players. The us was samsungs offering. You have to have samsungs portfolio products. Lateste to have the tablet for to marry with. They didnt like the sign that much. They do not feel the functionality was there. The new version, the cheaper theyon, and also fit they likeny feel the curved touchscreen. You can marry with your smart watch and take messages. Is can see that somebody calling you. You might not be able to answer on the fit watch device. But you can perhaps send a standard response. It has a lot of functionality. The competition is tough to read the key competition is lg life and. Band. You can team it with any android or your ios device. It has apps that can measure your heart need. They have not come up with the killer product yet. They keep showing innovation and a willingness to try. Angela merkel is in athens. Just after investors snapped up 3 billion euros in bonds. Berlin withis in more. Good morning, david. Athens in 2012, october, 2012. Angela merkel made the historic visit. The absolute height of the debt crisis. I remember being in a taxi, listening to the radio. There was a radio jock screaming the germans were invading greece. Angela merkel was a not see. You could not believe the amount of resentment. Im not saying that anything that has has changed. She is not the most popular person in greece. But you will not see anything like the protest we saw that greeted her 18 months ago. One of the reasons why is he 7000seal still see police out in the street. All the metros will be locked down. Not that much opportunity. And again, things have changed. The code what happened to the 10 yearyearold 10 year yield on the bond. Now it is around 5. 9 . A lot of the anger has come out of the markets as well. Angela merkel said we are dealing with problems that have arisen overrt decades. It would take a long time to solve these problems. We willeves it will see light at the end of the couple tunnel. Age the message is theres more work to be done. Greece has a long a lot to do. An engagement coming from german politicians. The president was there earlier this month. Angela merkel. We will talk to later. Thanks for the moment. And the world bank start their Spring Meeting in washington. Top of the agenda will be risks to the global economy, including the russian and action annexation of crimea. Reiterated the commitment to Financial Aid for ukraine. We are talking about a financing envelope ranging from 1418,000,000,000 u. S. Dollars for that includes room payment of anything that is a legitimate area. Any credit for. Any creditor. On sunday. Ing ends russia is a member of the imf. President putin has urged members to settle ukraines tet debt. His photography spans more than half a century. Images go on display in london. We are taking a chance to go inside the business of photography. That is the next hour. Dont miss that. Belownas inflation stays target, we will see how much scope the premier has to support growth. Time for todays company news. After they cut the prophet forecast. Profit forecast. Recalling 156,000 vehicles in the United States. The automaker is calling back cars with sixcylinder engines because of the defect that could damage the engine. It is affecting models made between 2010 and 2012. Floor has beeny found in heart they say some of the networking products are susceptible to the encryption bug. The vulnerability affects some of the routers, switches, and security firewalls sold by cisco and juniper. Back, this is countdown. A time in london is 6 17. Lets take a look at how inflation in china may affect the premiers push to create growth. Joining us now is jeremy from the canadian bank. Inflation is below target. Data,in to the mix trade which unexpectedly declined. We have gdp data next week. Which could show the weakest number since 2000. Issues to consider. Lots of moving parts. You have to overlay that when you are talking about the Chinese Administration trying to rotate the economy away from exports into consumer demand. A lot of moving parts. The question is if gdp will do celebrate, how quickly or aggressively will the administration look at ways for to try to reinflate the economy. Recreate some of the issues related back to 2009. Seems not keen to roll out a big program to read big program. That is part of the process we are seeing. The quality of the gross composition rather than the absolute quantity. Markets are up sensed obsessed by quantity. But it is the quality of the growth that is more important to growing more important Going Forward. Somewhere like australia that is where the dynamic and the interesting coming the austrian dollar rising. Very robust employment numbers. That help to provide investors have been carrying and negative bets on the Australian Dollar and looking at prospects for the r. B. I. Bitink that is a little ambitious and some firms in terms of the timing. When you overlay this with the deceleration story, no collapse, but deceleration nonetheless. The rally in the austrian dollar back to you in a second. We will talk about the dollar, japan, the bricks. The brics. Stay with us. Quite disappointed. I thought i knew him better. I heard him to be my successor. Does that make me mad . Yes. It might disillusioned . I m. I. T. Disillusioned am disillusioned . Not really. Here. Cs jeremy is the biggest weekly slide in eight months. This weeks minutes. What are they telling us about the dollars midterm projection . Clearly, markets took a much more optimistic or less dovish stance after the fed meeting back in the middle of last month. The minutes themselves are continuing that process of inling a back a little bit terms of expectations. We have added a lot of dovish language and rhetoric. We know there are some hawks out there. Generally, the perception is the yes, they will continue tapering. Rates will go up, but it will be a slow and progressive process. That took a little heat out of the market. We need to see the data coming through. Some very strong jobless claims yesterday. Yet that has still to materially drive through in terms of underlying performance. U. S. Yields and spreads remaining far from supportive. What is holding up the euro . Despite all the talk of trial qe runs . Why is it still up the references talk. Markets have become a little bit frustrated with just talked rather than action. You look to some of the numbers across a whole range of countries. Largely below expectations. Throw in greece or portugal. You can argue we need to move beyond talk and the need to see action. Until we do, the euro was supported. A little bity be of a legacy influence from the russian story. We may well continue to see capital flight out of u. S. Assets. Looking to europe as a safer destination. Less likely to have relatively extreme sanctions. On russia a crisis which was mooted in january. Some of the key players in january, the rush is on south africas. The russias and south africas and turkeys, the currencies have rebounded . They have. Whether it be structural risk related to the Mining Sector in south africa. Some of those factors have dissipated temporarily read dissipated temporarily. The dollar side to looks a little less robust. In have to be judicious terms of anticipating that extension of the process. For thoseo look better fundamentals. From a longerterm perspective, it means looking somewhere like mexico instead of turkey or south africa. The think a lot, jeremy. Thanks a lot, jeremy. Veling up, unknowable a no sales strategy. Welcome back to countdown, im mark barton. Fx check. Flirting with one dollar 39 cents come its best week since september of last year. All of that talk of quantitative easing coming from the ecb, and a Bloomberg Survey shows almost two thirds easing. The dollar is having its worst week in eight months. You have to say this right here will be watched, a drag on inflation and second, and headed for many of the exporters here in europe. Headlines, a tech selloff in new york yesterday. The dow jones four percent, the off fives also percent, the most in three years, investors looking at a possible overvaluation of tech stocks as earning seasons begin. Will replacert David Letterman next year as host of the late show. Colbert is best known as playing the character of a staunchly conservative talkshow host. Samsungs new set of devices hit the shops today. For more on the latest gadgets, we are joined by an expert, head of mobile at tribal group. Ben, inc. You for joining us. 5. 1 inch screen, fingerprint reader, 16 makeu megapixel camera. A water resistant coating. Is it any good . S yes, it is samsung best smart phone to date. One minute youre talking about the water and dust resistance, the scratch resistance, and at another point we are trying to the baby crane alert, which you can use as an infant monitor. All interesting features, but that is a broad thing to communicate. Was often criticized as being a little too gimmicky. I think samsung has been trying to play up with the success of the s3, much like apple. They made this giant leap incapability and recognition and the s4 comes out in the name immediately replace it. They have struggled because the technology is not really improved that much. You can add an improved camera and screen and the device size as well, there are no giant leaps. So often they compensate by putting in a lot of software features. The heart rate monitor, some question about whether there is value putting that into the device. No big Game Changing technology taking place, is that a disadvantage for samsung versus the lowend manufacturers , the chinese players that we . Alk about on a daily basis i dont think it disadvantages them against those players because they are not aiming at this end of the market. Their materials cost and Development Cost is midmarket, or the bottom end of the market. Samsungs more challenging task is to explain to consumers why they may need to pay 600, 700, depending on how the device is subsidized, for this very highend device. One of the huge challenges is against the likes of motorola and other competitors who were putting in huge competent vices at the mid tier, hugely competent devices at the mid tier. They are saying we dont need a screen. We often focus on apple, sony hasannounced, htc announced, and some of the mid rage phones, including motorola and lg. Are they realistic competition when it comes to the samsung . They are, and we have had all of the large and players this year. One, the sony is due to be shipping soon. All of the reviews say these are all very competent phones, the high end of the market, and very tough competition. Samsung has only really made about one third of its smartphone revenue from highend devices. This will not matter, but it could matter on the other devices. You should expect to see an s5 mini coming out later in the year and also different regional devices to lowend achieve this halo effect from this device. Caroline was telling us was in freebieses, 600 essentially for the s5, is that a good thing or bad thing . It is an interesting play. It may point towards a deficiency, but it shows where samsung may believe there is a gap in their services, so they are shipping with one month storage space, fitness activity trackers, even Bloomberg Services to give business news. What it indicates now is as a consumer you did not buy a smartphone, you buy into the ecosystem and you value the service is almost as much as the hardware in front of you. It is an interesting play. I think the 600 figure that is bandied about is a little overblown. Perhaps more interesting is the cash back in incentives in the u. K. , where we are at the moment. Not a lot of people offering 100 pounds cash discount on a device. The average selling price will be a challenge here, and they may have to partner with their operator of phones as well. The new gear lineup is available to the world today. The first gear did not go down particularly well. Is there evidence the massmarket once these types of wearables or not . Honestly, at the moment, no. The first gear was clearly a test device. There have been devices like the pebble which have had hundreds of thousands of sales, but when you pair that with what the scale is like samsung has been achieving, it really does not make a dent at the moment. The other interesting fact is samsung has their own platform and the rhone smart watch devices. Whichave the gear 2 neo, is a device that runs on a platform, having abandoned android for the first time. They also have the gear fit, which is a sports activity tracker. Immediately, it looks closer to the devices that are selling. You have to bear in mind it is retailing for almost double of with the sports activity trackers are. It has this display and it looks beautiful. On aer, it is running close, proprietary platform. Do you want a 200 device that may be obsolete if you change or smartphone next year . Good point, ben smith, head of mobile at triumph group. December, 1929, jerusalems came out. It has been rebranded at the as the waldorf astoria. We have an inside look. Hotel of the 1930s lavished luxuries on the visiting shakes and diplomats. Phones, hot water, and elevators. Now the waldorf astoria costing up to 5,000 per night, guests can expect even more. The finest italian furnishings. A magnificent atrium with dropdown windows. Stunning czech chandeliers. About 200,000 each. For a light . A very special light. My favorite feature in the hotel has to be this, a tv embedded in your bathroom mirror. What more could someone want them being able to watch bloomberg tv wall having a shave . That wasn a restaurant once a staple, the general manager is making the hotel a reality with even tougher the next making it into a reality was tougher than expected. While we were digging 20 meters underground, we had additional meeting rooms added, and on top of that the rotunda from the palace hotel, we had to build it exactly the same way as it was before. And 150k six years million to restore and rebuild a hotel that had become home to the trade ministry and tax office. Overcoming israels byzantine planning laws, says this architect turned author, took longer. Thisstarted working on project 35 years ago, 1979. Im very happy with the result. The inside is the inside of a highclass facility, a business hotel. It is not a recreational facility. Facility, very good in proximity to the city, and the interior is very lavish. To in new york. It may not be to the taste of the original architect, but the waldorf astoria should last longer than the original hotel. Up, liverpool posts Manchester City this weekend. Whoever wins will more than likely go one to be crowned in the premier league champions. Match analysis for the game of the season is next. First. Bloomberg. Time for todays company news. Shares fell the most in nine months in tokyo trading today after the profit forecast yesterday. The billionaire president pair the outlook after spending more on salary and expanding overseas. The worlds biggest producer of organic milk plans to expand in africa. Are expecting a surge in volume after the eu removed production caps on next year. Arla is the biggest milk cooperative by volume. They will produce more milk this year than it has ever produced in its 133 year history. Undergoingcoln brand an overhaul will freshen its lineup with a new design director after quite reading after quietly replacing the previous. Theyre trying to revive lincoln to get a larger slice of the lucrative luxury car market. Countdown welcome back. Welcome back, this is countdown, im mark barton. Sunday, liverpool posts Manchester City who will more than likely be crowned champions. Lets crunch the numbers, see if the data is pointing towards this. Hi, dave. Is that right, the winner of this game you think will go on to win the title . Not necessarily, no. I think it will come down to a match going in the season. No question it is the biggest game of the season by some distance and also the biggest game in liverpool for a long time as well, which is really exciting stuff. These two teams are thrilling, 901 goal scored in the premier league this season between them, scoring nearly 20 . City has two games in hand, which is why it is so interesting. Chelsea, two points in between them, two behind, with a chance. The Conversion Rate of chances, 15. 73 , terrific though they are, that is a really good Conversion Rate. The other chance is in terms of legal ranking, 1, 1, 1, two, two, two. They are number one and number two in those stats. And we are looking at shots and big charts. Its incredible. Absolutely, liverpool with 17 shots. City with a slight edge. Echoes theatistics Conversion Rate. City has more shots, liverpool makes more of them. Shots on target is where liverpool starts to take control. Match, kind of what you would do fine. A logical reading of it. 3. 0, andatch against that is a high average. Steven gerard. Even ones given to a trapper. The other point to make about the day as it will be an ,xtraordinary day, 25 years on and the emotion will be quite something. It will be replayed before the game. It will not be a dry eye in the house. Particular from the northwest of england, it is a very emotional day come against the backdrop of a game of this magnitude. Thehe opposite end of field, defensively, how do they match up. We can look at those stats and say they are both that the top, one and two, liverpool just has the edge. This is where many people feel the title will be decided. City has more than an edge. The goals conceded per matches pretty high. 94 is much more like it. Chelsea will be better than that. Shotsa conceded only 102 all season, astonishing. They are way ahead in this particular category. Time,. 94you every goals conceded per match, shots conceded. Egg may not seem like differences, but they are on a match by match basis. They may not seem like big differences, but they are on a shot and match by match basis. 34 is a lot. You just wonder, can liverpool, can they contain Manchester City . Is inerpool is quite pham recent games of coming out of the blocks really quickly. Both of them. Coming out of the blocks. Is sunday, but both of them come out of the blocks and score goals early. In terms of early goal scorers, it might finish 54, looking at the stats, but i wonder if they might cancel each other out. Might it be a draw . \ it might be quite lowscoring. , very cutemight be managers, these two. That is to the situation. He might think if you take city on by attacking, they will get caught on the break. We may not be looking at millnil, but a bit more of a lower score. Players, a lot of them won a title a couple of years ago, to their advantage or not . That is one of those things that i say when i talk to explayers, they all say yes. I sometimes think that freshness is better. And they are not scared. Rogers has said, we have nothing to be scared of, we are way ahead of where we want to be. He takes the pressure off very cleverly i think. There is a difference between liverpool and some of the players on Manchester United of titles. On a lot sure, some of those players have won titles elsewhere, but i wonder if too much is made of it. Explayers all say it is a huge difference to have won one against none, but surely stevens can cope. And thank goodness he can play, by the way. Yes, and who might win, in your view . We have liverpool on the percentages. I want so much for to be liverpool. I have a horrible feeling it may not be. I think it might be a draw. Up, the second superhero blockbuster of the spidermanamazing movie preview is next. Welcome back. Im mark barton. This is countdown. Caroline is here. Are you a gulper or sipper . You better explain. Down here,article but apparently for you coffee fanatics, getting high on caffeine, apparently we should all gup to get more aroma from the coffee according to this article. Dont complain when somebody is taking big drawls of their coffee, making a noise, because they say it has a higher roma release and it has a Significant Impact on each other. Therefore, we take 25 milliliter mouthfuls. Do you like coffee . I love coffee. Fan, dave . A coffee how do you consume your coffee. Yes. The italians love their coffee. I dont even drink it. I am a tea man. The masters, round one is over. Is, and the american is leading. He followed a couple of groups, including arnold palmer, Jack Nicholas, gary player, the three old boys, and he has written loving things about how things are policed in the gallery, what you can and cannot do. Signs, no cameras, no phones, no chairs, no radios, no sitting in standing areas, no outside hats, fans, or fanny packs, no outside drinks. You cant do anything. Absolutely. Sittingthis romance of at home watching it on television, and it is a lot harder to watch them in person. The other thing i thought was lovely in this piece come he talks about Jack Nicholas who has always said he does not want to play a major he cannot win. I thought this was really lovely and poignant, he said i wish i could do this again. Somebody points out, you are doing it. It was not ceremonial. He said, i would like to wind the clock back a few years. Knowing he might have a shot at winning. But that is what mix a champion come he is not even happy in his 70s. He still wishes, one more chance to win that very special tournament. A true champion. , themazing spiderman 2 telegraph has awarded it three stars. The chemistry between the Love Interest is apparently what this film is all about. All the special effects. The special effects not so good. The bad boy is jamie foxx. He is electro, and apparently according to this he looks like the love child from watchmen and mr. Freeze from batman and robin. I think he is blue is what it basically says. Thank you. Continues next hour with a stock selloff in asia. Stay tuned. Leaving room for stimulus, chinas inflation stays below target, giving more scope to rollout measures to support growth. Gearing up for the masses, the hits shelvesy s5 worldwide. And they are hoping to get you fit with their latest gear and smart watches. Angela merkel arrives in athens as austerity may be easing. Hello, welcome back to countdown. Im mark barton. Bloomberg reporter standing by across the world, ready to deliver the stories that will drive your day. More onn hong kong with chinas Inflation Report and the selloff in asian stocks. A renewed slide in u. S. Tech shares. Focused onde is samsung is their latest devices hit the shops, and david tweed is in berlin. Covering Angela Merkels first visit to athens since 2012. David bailey photography, hundreds of his best images are on display in london, taking a chance to go inside the business of photography. That is later this hour on in the know. Leading, pushing the regional index down the most in three weeks. Lets head to zeb over in hong kong. Were seeing some of the biggest impact in japan and china. Chinese shares, the Mainland Companies that are listed here in hong kong, down about two percent today. It reflects a concern about chinas growth. The latest inflation figures show inflation well below the government target of 3. 5 in the month of march, while producer , 25es also fell 2. 3 straight months of declining producer prices. It also just perhaps more stimulus to come from the government in beijing. However limited it may be. It also indicates domestic demand which is so critical to the reforms we are seeing in china is not holding up the way the Chinese Government would like to see. The markets not interpreting it well, neither is the prospect of additional stimulus, and it is all of curse and it all of course is furthered by the selloff overnight on the nasdaq, tech stocks declining across the region as well. Stocks in hong kong seeing the biggest decline in two months, and it is all to blame on wall street and the Inflation Numbers from china, the producer prices, again, the prices that goods are charged to factories, continuing to worry economists and investors today all of across asia. It is a down day for the asiapacific index. Mark . Thanks, zeb. The nasdaq fell the most since 2011 yesterday, the tech selloff continuing. John is here. They are all getting hammered. Where is the love of tech stocks is what everybody is asking. , picked out three Companies One is facebook, netflix, and google. They have had a difficult time the past two months. Coming off their highs, doubledigit declines for a couple of them, over 20 for some of them. These stocks over the last few months have met what many people call gravity. Those highs are not just highs for the year, they are all time highs. That is a sign of where the market is at the moment. We have had some lofty levels and this is the correction a lot of people thought. Valuation, 35 times earning p e is not cheap, but it is not 2000. Looking at earnings 53 times earnings back in 2000, the same level in 2007 as well, but it is not cheap. If more offerings will come to the market, more share sales or will they be delayed because of the selloff. I think it is speculative at the moment but we have had so many people come on and say, there is this massive pipeline of raven equity firms trying to bring these companies to market. As is the perfect window to do it, the valuations are good, the market is all yet. The market is buoyant. They had a terrible first day of trading. Was this the correction that many people said was going to come . Weve got it. That was the day the correction began. They are saying that the king digital ipo may be the trigger. I have spoken to a lot of people, there is a double, people talking about, that is for sure. What does this have in common with 2000 . In 2000, i dont remember a lot of people talking about the bubble. Most people were confident about what was going on in tech stocks, and im sure did look back at some views on bloomberg in 1999. They did not see it coming and when it did come it hit harder. Look at the nasdaq right there. The bubble bursts never arrive when you think they willful stop Angela Merkel is in athens today just a day after investors raised 3 billion euros in bonds. David tweed is here. David, i remember you were there a couple years ago when she last visited athens. Things have changed a bit . Yeah, 19 months ago i stood on the roof of a hotel overlooking the square and it got pretty hot at one stage, eggle holding up great effigies of Angela Merkel dressed like an ss trooper. One of the reasons we will not see those purchased today is the fact they are much better at crowd control. The entire area will not be as the entire area will be locked down, even though the Opposition Party is calling for protest. She will not arrive until 3 00 in the afternoon. She will meet young business leaders, talk about investment. Worth also looking to see what has happened in terms of the yield on the secondary market. If you go back to months, the 10 year was yielding 18 . It is now yielding under six percent and we have the bond issue off yesterday, a resounding success even though a lot of people are shouting, how can that be, they still have 170 debt to gdp ratio. They dont have to pay interest on that. When they do it will be at incredibly lower rates. Mark, another thing is the message we got from Angela Merkel back then was there is a long track to run and we need a lot of time to see the light at the end of the tunnel. Maybe we are beginning to see that light, but her message is likely to be the same, still a lot of work to be done in greece. The issue is now how to get the economy to grow, get the Unemployment Rate down. The other thing is said is not just Angela Merkel who has been visiting greece. We saw the german president was there in april. There is a whole runup of diplomatic and political exchanges going on between germany and greece at the moment. The bond sale is big news, reverberating around europe right now. Where are we seeing that the most . I think it is interesting, lets look right across the range of fiveyear notes, fiveyear bonds. If you have a look at the graphs, they are just going in one direction. Ireland, spain, italy, portugal. One of the interesting things about the italian note is now yielding below the british note of the same duration. There is speculation the European Central bank is going to start some sort of quantitative easing program. Whether it does that or not, the yields are coming down. The rally continues in the peripheral bond market. Very interesting to witness, given the fact a lot of are out there screaming, no, the debt crisis is not over, yet these countries have taken a lot of measures to try to fix their structural problems, problems they would not have been able to fix if they had come spinning out of the euro and try to devalue. Liveank you, david tweed, in berlin. Samsungs latest set of devices hits the shops today, the Samsung Galaxy s5 and the gear, available in stores today. Theline hyde is here with details. Is it doing enough to remain number one in smartphones . I have some toys to show you what is coming. 125 countries is where this goes on sale, the samsung, the galaxy s5. They have tried very hard. People left criticized the design of their phone. But look what you get, a fingerprint and heart rate sensor. The there is also the Fingerprint Technology on the 5s. I was speaking with a tech investor and the swipe of the fingerprint. That means its probably taking more data than the iphone five s , therefore possibly safer and should be able to do online payments. It may be a little harder to work but it may be safer. Bigger screen, more battery, water resistance. How far . A meter, three feet, 30 minutes. But not enough. They feel this is not revolutionary enough. That was the criticism about the phone. 600 of freering applications, paypal bachelor, linkedin premium, at least four fitness apps. It is trying desperately, still way out in front. It has sold twice as many. Double what apple did last year. It is still the leader, but it is worried about the cheaper models coming on, the new kids on the block, and the apple iphone, very competitive. The question is can they hold on to that. And this is the gear. This is the galaxy gear ii neo, the cheaper version. I played with these. I saw them unveiled this year when they were first launch, the first version. The first version had a lot of criticism. 800,000 shipped in the first months, but you go to ebay, check how many are currently available, the original galaxy gear are available for knockoff prices because people dont know what to do with them. The problem is you need to be in the samsung ecosystem, you need a smart phone, tablet to be able to match these, mary these with. Clearly they are trying to fight back. They have unveiled new versions of the galaxy gear, a lot prettier, better looking, better functionality. Also a cheaper version, the neo, and the gear fit. The year fourbe fitness bracelets, whatever you want them to be a, you have the fit it, the nike fuel band, a lot of competition. The gears offering fit, very goodlooking. And you can check messages from your phone, you can send responses to phone calls. I think the key competitor is going to be the lg life band, which you can marry within apple or android. Again, this only goes with the samsung portfolio, so that is a key concern, 200. The main thing is we are waiting for the gear solo, the smart watch that operates on its own without a Samsung Phone or device. Thank you. Both the imf and world bank start their Spring Meetings in washington today. They will be talking about russias annexation of crimea. Ahead of this, rolled Bank President outlined the risk for the russian economy. If the impact is relatively mild and if the crisis is relatively short, still we have reduced growth expectations down to about 1. 2 , 1. 3 , excuse me. 1. 3 for the year, which is about half of the previous estimation. On the other hand, if the crisis goes for longer and has deeper impact, we feel the russian economy could contract as much as 1. 8 this year. This is a very serious issue for russia. Coming up, a day after greece sells debt for the first time in four years, a man who is bullish on peripheral debt. Stay with us. We will speak with the hsbc head of global research. First. Bloomberg. Time for the company news. 56,000 vehicles in the u. S. With inline six cylinder engines because of a defect that could damage the engine. The recall is affecting models made between 2010 and 2012. Fords lincoln brand is undergoing a 1 billion overhaul to freshen its lineup with a new design director after quietly replacing them. Ford ceo mulally is trying to revive likened to get into the luxury car market. Cisco and juniper said some of their networking products are susceptible to the encryption lead withthe routers and firewalls sold by both companies. Welcome back. This is countdown, im mark barton. Hsbc arrays in its rate on the eurozone periphery debt, bullish. Stephen major is here, hsbc global head of fixed Income Research. Steven, good morning. The greek bond sale, desperation or optimism . Exuberance, perhaps. 24 hours before the deal came, people were talking about 5. 25 coupons. And the issue was 3 billion rather than 2 billion. That was a huge market demand for this. The amount of debt being issued as a proportion of the outstanding debt is tiny. We are talking about one percent of the stock. There is 300 le in euros of debt. Here they are just issuing three more. In the scheme of things, it is a drop in the bucket. I think it is a validation of how far they have come. The gdp, 170 . The rate they are paying on it is 2. 7 , and many eurozone countries would take that. It is a lower average rate than many of the other sovereigns not on programs. They have a very nice balance. Does it signal the end of the eurozone debt crisis for greece . Its not unusual for a country to come through a restructuring like this within two years. In fact, some of the imf data says it takes 18 months from default to actually showing a Public Market again. Greece has just fulfilled the normal track record. In a way it does signal the end. If a country can come through the restructuring an issue again within a complete years, it says something about the health of the system. The eurozone looks like a haven of stability. And you are bullish and say go overweight the 10year, which is at a record low 3. 16 . The bond markets are interesting in the validation of the progress comes in the perception and the fundamental data seems to come after. This year you have had some good news, but it has been coming through slowly. You have had some development on the political front in italy, some progress, but some of the data in spain has been better in particular. That helps. It helps validate the price action. The 10 year bond yield for the periphery are at about 100 basis points. At the start of the year there were many people thinking the market was rich already. So you had a position that was technically probably underweight. Nobody wanted to believe in the rally. Everyone i meet is waiting for the sky to have fallen, and they are focused on the European Election hero there. Will it . It seems it was waiting for something. Why is it we are also preoccupied with bad news question mark i think it is the nature of the bond market that we are riskaverse. We are looking for things to go worse, but in the eurozone things have been improving. The price action is validating and improving the fun amid the backdrop. We will come back, steven, global head of fixed Income Research at hsbc. More on the ecb, stay with us. I think the past two months have been silly, breaking news. Quite rob ford or Chris Christie in the headlines. Gross talkingl about the departure from the firm a month or two ago. Hsbc global head of research steven major is here, neutral now, mildly bullish on the u. S. . The trueay belie position. We are bullish on u. S. Treasuries. , 2. 1 atecasting 2. 5 the end of the year. Tactically, we are looking to be only shorter end of the curve, which means the duration exposure is near neutral. That may be mistakes the direction. In terms of duration, neutral. But with the emphasis on the shorter maturities. We think yields are still coming down. 2. 5 is not far away from the june forecast, and 2. 1 at the end of the year. Right hikes . Not next year. From the fed minutes . I think they just keep pushing out. There are 16 different forecast coming using their own models. The fed is keen to emphasize the are not productions about where rates will go. This is just a bunch of forecasts. In 2011, that collection of forecasts forecast this in 2013, and the rates are not quite there. I would suggest the international factors, particularly asia, china, the not fantastic. What is happening in the emerging markets, is all have to be thrown in into the melting pot. It is not just all about the u. S. Data. I think it is very unlikely they would hike three times next year. Maybe therell be no hikes. That is why the market is reappraising the outlook and favoring this. Avoiding front end guilt in the u. K. . Its a question of valuation, really. We have a few things to be worried about. In many ways, the direction comes from the u. S. Its difficult to imagine the rate cycle moving independently from the u. S. When you look at the correlation between treasuries, you see the line. It is a case of valuation. Think we were higher off on the u. K. Guilt. Again, i think it gets pushed out. Is the election this spring to early . There is an election next year, a lot to get through. Also, lets see what happens in the next few months. We are focusing on the exuberant data of the last few months, but this has to be sustained. This is not the first time, either, in the last years that the market has priced in a rate hike that does not happen. This could be the third time the market has position for 100 points of rate hikes Going Forward. We will see what happens. The previous two occasions steven, thank you very much. From hsbc. R, david baileys photography is next. Dont move. Welcome back to countdown. Im mark barton. Lets get to Jonathan Ferro for the fx check. This one right here is having its best weeks in september last year. The potentialto for quantitative easing from the ecb filtering into this, almost two thirds of respondents in a Bloomberg Survey see more easing from the ecb by june. It is not pushing down the euro. The dollar is having its worst week in eight months. That is why the euro is higher again. We are back to levels we have not seen since the ecb meeting thursday. Mario draghi did not do enough to this. Two takeaways, one this will carry on, and this will be a headache for many exporters across much of europe. Thank you. The top headlines, markets in asia lower following a tech selloff in new york. Compositenes internet is down. The nasdaq biotech index was down over five percent, the most in three years, investors looking at possible over valuations as the earning seasons begin. Comedian Stephen Colbert there will replace David Letterman next year on the late show. Letterman is retiring after 33 years on latenight television. Colbert is best known for playing the character of a staunchly conservative talkshow host. Famous immortal and the anonymous unforgettable, that is how our next guest describes more than halfcentury of work by u. K. Photographer david bailey on display in london. Lets take a closer look at the exhibition. And the business of photography. Here with us is the art expert and cofounder of the rifle making gallery in london, and our very own anna edwards has joined us on set temporarily because you have been to the exhibition. Yes, i have. Thank you very much for joining us. When you go to Something Like put, and exhibition together by david bailey himself, what was your to bury itself it . There are almost 300 worker portraits from the last 50 years. Its amazing to look in there. Its almost like an archive. Like a chronicle of history or composition of the photographs . You walk inthink and look at it as a chronicle of history, but you also look at the composition of who is who. You are interested in seeing who is going to be the next person. Its a string, because he is looking at the past in the future. He is also looking at the present. You are actually going through historical figures. Its interesting to discover who is next. As i say, it is making history through images. Bailey is it about david and his photographs that have stood the test of time . They have stood 50 years. What is so special . Its interesting, because you can talk about celebrity photography, but you need to have more. I would say you have to have almost a copyright. You have to be unique. It is inventing something, having something that is transcending time. That is clear about saying he creates photographs, he does not take them. Exactly, he does not just capture. He was saying that his main hero is a cost so the, that his main rule is that his main hero is asso, and you create your own star. Question of a taking them outside of the box. They dont even accept they are inside the box. He feels he a something in common with them. What is the role of celebrity photography right now within the art market . There are many celebrity photographers, but you need to kind of transcend this. You need something that is unique. You have to have your own kind this, asill repeat that act, something that is years. You dont have to own mastery, you have to create your own mastery. Is he on his own when it comes to this type of photography . This exhibition is not just about celebrity photography. He has been to sudan, all sorts of places. You mentioned this, how does it marry celebrities on one side and portraits on the other . Its quite the acquisition. I think this is very personal, so i cannot really mention. It is a strong composition, if you like it or not. I usually gravitate towards the people i would recognize, but sometimes you dont want to see the others. Challenge in one exhibition. Its interesting to look at technology in the context of the technology he has used. He has adapted technology through his career, changing the technology he has used. He has even adopted smartphones. He makes the comment that i found interesting about in the facebook era, it seems as if our perception of what is to intimate of a photo to share has changed a lot. He is keenly aware of how technology is doing this. I think if you are a creator commie need to be aware of it. But then what you are comfortable with is a different thing. Like he is feels shooting on film, but you also have to keep up with the time. The penning on the subject matter, then he probably uses different methods and mediums. What are the other exciting trends taking place in photography . We wont discuss it, but exactly. Friends, we can call them john rust working call them a genre, the classical they are still in the art market. The beautiful blackandwhite, elegant photographs. Then you have the contemporary artists that are using them as a inhod, photography, and fetch 4visual artist million at christies auction, a substantial that is what is selling. A substantial market. Think of cindy sherman, they are reaching these kinds of amounts. Then you have the more novelties , the contemporary artists that use photography to capture performance or to capture other things. You are talking about artists who are using photography as a medium to capture performance. A question for both of you, as you have both been to the exhibition, what is your favorite portrait within the exhibition . For jimmy, what is your favorite . Mia farrow. David bailey always said he needs to feel very intimate with his subject matter. He wants everything to capture this intimate knowledge. I like some of the images of the east end of london. He grew up there and he took images of the area in the 1960s next to some of the more contemporary portraits he has taken. I liked looking through his lense at the east end of london. You met him three years ago. Yeah, he is such a fun person. He loves art, he loves going to art exhibitions and looking at what is there. Andas looking at picasso others, and those are his inspirations. Did he make you feel special with his eyes . Apparently he is famous for that. He has his way. Exactly. It worked on you. Good stuff. Thank you, virginia. Well. Thank you as she will be back on on the move. Starts in 20 minutes. How thebe focusing on European Equity markets respond to the weakness in technology stocks. Both in the u. S. And the asian sessions. When the markets open, we will keep an i on that sector. We will also focus on the banking sector. Capital joined by iur director to talk about jpmorgan numbers. Also the u. S. Banking sector, the rate environment, the state of the u. S. Economy, the improving u. S. Economy will impact the banking sector. That is dealing with legacy regulation issues. And Lucy Mcdonald from ollie onto investors from allianz investors will be with us. Three hours of anna edwards. Coming up, the secret to becoming an arm wrestling champ. First. Bloomberg. For a look at some of the most compelling images of the day. For those of you who think walking to the office is too much work thomas there is a solution. It steers itself based on how you shift your body weight. The air wheel was among the hundreds of devices on exhibition at a gadget show in the u. K. , costing a mere 820. The biggest biceps made a beeline to the Northern Territory and australia for the firstever arm wrestling championship. Eats 18 eggs per day, breaking them straight up. Caroline hyde is squirming. And forget about captain america, batkid is back. Firstew the ceremonial pitch for the diamondbacks and giants baseball game. The Makeawish Foundation fulfilled his wish to be the cape crusader for a day. Welcome back. This is countdown. Im mark barton. The top corporate stories with Business Editor Caroline Hyde. Common the eggs do you eat a day . Raw or cooked . Probably a few in a salad. That is just the egg whites. Its a texture thing that would get me. Im with you. But im not worried about furthering my guns. Today moving in europe are following from the United States. Gap with really poor sales in march, seven percent down for the group as a whole. Gap also owns old navy and Banana Republic. Old navy phil, Banana Republic not so bad down four percent, the higher and the range of the gap. Margins, all about profitability, promotional activity is very high. Fell and we are seeing a gathering of pace in the deterioration. Im just looking at arm shares. Yeah. Wow. They have had an interesting april. A phenomenal company. They designed the chips that go into just about everything, every smartphone come every gadget. They provide the chips. And they get royalties when they license them out. And you pay a fee when you purchase that particular design. Incredible company, based in cambridge, but its going to feel the pain from the american depository receipts. If you are exposed to arm in the u. S. , they fell five percent yesterday. The whole Tech Industry feeling a bit of pain at the moment. I spoke with a tech investor yesterday who was saying, look, when does really the fact that it might come off in the United States, the fact you have volatility in russia, ukraine, and will that impact the amount of users on facebook and twitter . These are the things you look at when you are analyzing a stock. Yes, youre looking at how to monetize that. Some are saying the king digital ipo may have turgut it. He talked about that it was a poor thing to be buying into. At the was a one trick moment. The valuations were far too high. People are buying on candy crush, but i think he feels the investment trough perhaps yesterday we had a rebound, didnt we . We had a bit of a rebound. Four days would have been the strong point where everything may have picked up on a technical basis. April 1 until april 7, arm shares fell seven percent, then rebound, then down again. Bmw recall . 156,000 vehicles in the United States been recalled, sixcylinder engines with a defect. They will go to the different markets to see if this is a concern, but no accidents or injury. When it opened in december 1929, the Jerusalem Palace Hotel was hailed as the most luxurious in the middle east. It only lasted a few years, but it has restored has been restored as the war for story upon they just luxury hotel. We got an inside look. The palace hotel of the 1930s lavished luxury on the visiting sheiks and diplomats. Things like phones, hot water, and elevators. Now the waldorf astoria costing up to 5,000 per night, guests can expect more. The finest italian furnishings. The magnificent atrium. Stunning czech chandeliers. How much do they cost . About 200,000 each. For a light . A very special light. My favorite in the hotel has to be this, a tv embedded in your bathroom mirror. What more could someone want them being able to watch bloomberg tv while why having a shave . That was onceant a stable, they are making the hotel a reality, even tougher than expected. Tothe main challenge was restore the original facade from 1929 while digging 20 meters underground. We added additional meeting rooms under the biggest ballroom. On top of that, the rotunda from the hotel, we had to build it exactly the same way as it was before. It took six years and 150 million to restore and rebuild the hotel which is home to the trade ministry and the tax office had been home to the trade ministry and tax office. Overcoming israels byzantine planning walls, says this architect turned author, took longer. I start working on this project 35 years ago. In 1979. Some very happy with the results. Highclass,s procedures, business. It is not a recreational facility. Proximity very good to the city, and the interior is very lavish. Sort of similar to the waldorf astoria in new york. Ofit may not be to the taste the original architect, but the waldorf astoria should last longer than the original hotel. Just ahead, the tech selloff continues in the u. S. Just as earning seasons kicks off. We will see which companies fell the most. Welcome back. This is countdown. Im mark barton. Seven minutes away from the European Equity session. The top macro themes. You better start with technology. A remarkable selloff. Many people expected it. Here it is come a big selloff, the nasdaq down the most since 2011, some big names amongst them. Netflix, google, all coming off highs for the year. All time highs. That is really the point, coming off alltime highs. Before yesterdays fall, earlier this week i think i read a stat that 40 or so companies on the s p 500 are down from their high, and the average decline is nine percent or Something Like that. Its on the screen right now. There you go. But we are not at valuation levels that we were back in the late 1900s the 1990s . We are not. Ratios, in at p e 2000, that would be 50. On that metric, its not the same. About, i love talking greece with stephen major. Fascinating. Cs are we spoke with henderson investors over at bloomberg print, and they said with a troika, the market is supporting us, the efforts we have made. That is how political this is. If you have not read this bloomberg piece i read it. Desperation or optimism . Picture greece if it was a company and you are looking at these estimates as the hokey pokey fund management, hey, guys, we want 20 billion euros, we would say the company is in bad shape, very high credit risk , the asset by 17 . The yield below five percent . The physical to go it is interesting, the italian year it is lower, the spanish yield is lower. As is a massive hunger for yield. Are they expecting quantitative easing question mark that is the big question. They may have to deliver. We thought there was only one way to go, and they went negative. Maybe it is time to stop being so gloomy in the bond market. Not surprising after the recession. On the move is next. Stay tuned. Or on how the tech selloff impacts the european market. See you monday. Welcome to on the move. Francine lacqua is off today. We are Just Moments Away from the start of european trading. Our markets team is everything covered from companies to currencies. Are Caroline Hyde and Jonathan Ferro. Our european editor david tweed joins us from berlin. It is been quite a week for tech. The nasdaq is down the most since 2011. Many of the stocks are coming off alltime highs. Europe expecting a lower open. Quarks are galaxy s5 hits stores later today. A little demo here. It is gorgeous. Many people are feeling it is not a revolution, just another step in the direction. Packed with 600 worth of freebies, never mind the price war. Heres the free the war when it comes to smart phones. Paypal vouchers, linked in premium. Theyre trying to lure you in. Onone is trying to remain top. Interesting strategy. David, chancellor merkel is set to visit greece today. She is expecting a little different reception that you got last time. Could be a little bit at her. But they are a lot more