The French Foreign minister has told french radio that if the initial measure is put in place and they dont receive results they will target individuals and companies. The ball right now is in mr. Utins court. We will cross back to brussels shortly. If we look at todays trading session, its ukraine, it china, its u. S. Jobs, and we have a couple of corporate stories. I think this story is the most most interesting. The fed is going to be interesting with u. S. Jobs number, but we are looking at one in, and thats the clock he does it friday. Lets get this trading session started. You see equities pointing a little bit lower, down by a 10th of one percent. Despite all the geopolitical concern, despite the lack of centralbank action, the stoxx 600 pretty much dead flat. One hundred 49,000 during the month of february, bringing the average down to 112, which is pretty pathetic compared to 190 four we averaged last year. One trade i want to look at is eurodollar. One dollar 3866. The euro does this. ,f you go long expectations short, that is a losing trade at a moment. Mario draghi didnt look dovish , did he . That was the latest on currency and market movers. Lets go back to ukraine. All eyes have turned east. Ryan, crimea is back in the spotlight. Very much so. The Crimean Parliament voted to succeed from ukraine and join russia and will hold a referendum in nine days time. After they announced those decisions, the federal , the power here in kiev expanded the Regional Parliament and said it was a farce, that it was there aretional. Several thousand russian boots on the ground in crimea. They are maintaining military and the relations. This is going to go forward. It follows the blueprint we have seen in other places in the soviet union. They get a requesting support from russian authorities. It doesnt necessarily mean they will join russia. Russian government doesnt need to approve that. They areh noting working on the law, even if no one considers it a legitimate decision. Thank you so much. Joining us is Andrew Wilson, ceo of Goldman SachsAsset Management. Bit. To me a little it has been quite a week. The selloff was very shortlived. How do you see this political standoff . Read for investors . There is a lot of attentiongetting headlines. If you look at the Market Impact, it is the muted. May be the best one is the ukrainian 10 year bond. The yield spike and they come back again. Markets are taking it in a sanguine way. We will see if that is right or not. I think partly because of the Economic Impact its much more difficult to maintain. There is a high codependency between western europe and ukraine. 25 of them go to europe. Its very difficult for them to exercise a lot of economic leverage, so its very high in politicians minds. From a Market Impact across all very quick spike, and were back to 14 right now. Unless the conflict escalates, and thats a real possibility, i think the Market Impact is likely to be relatively muted. Have a lot of questions. A lot of investors saying what ,o i do with emerging markets especially Eastern European . Russia has been suffering from capital outflows for a long time. We are seeing the russian ruble continue to depreciate. It weekend on these events, but that is part of a longer trend as well. About ninet is percent, so certainly it is more compacted this year, but it is a deteriorating story in russia. This doesnt help that. Helprtainly doesnt sentiment for emerging markets. I know we have talked about that in past discussions. We continue to see resell retail outflows out of the emerging market debt funds. I think being on the front of newspapers certainly calls for Retail Investors to withdraw money. I think Institutional Investors are still looking to put money to work in emerging markets. This probably cause them to pause for a while. We dont think it changes. We saw things Institutional Investors are going to continue to buy in emerging markets. You have always said you have to pick your country. For me, the gut feeling is you get out of the satellite countries for russia. I think you wouldnt be careful with countries that have close contact with Eastern European. We have very high yields like resilient or much greater economic reliance on the u. S. Such as mexico. Our views havent really changed. We think those are the better places to put your money. Thanks very much. Stay with us, and we will be talking about china next. Here is a look at what else is did Winter Weather freeze hiring in the u. S. . We will look ahead to payrolls, and the chinese bond market. They will be able to pay Interest Rates do today. More on that. I am Francine Lacqua in london. Us is Andrew Wilson. He is chief executive of Goldman SachsAsset Management for europe, the middle east, and africa. We talked about ukraine and the impact on emerging markets. You said today, pick your countries, pick them well, and it has exposure to the u. S. Such as mexico or strong fundamentals. What else do you like . We focus on growth. We are still confident about the u. S. Story. A little more cautious because there is a downshift in chinese growth. We have a vat hike coming up at the end of this month. The whatncerned about that does to bring down japanese growth as well. Were a little bit wary of countries that are very exposed to the softness in asian growth. Thats another area i would say we are more cautious around. Are there other areas you havingd now you are second thoughts because the resources havent been pushed through enough . I think we have then biased towards the u. S. We have had a view the u. S. Economy is doing reasonably well, so anything geared towards that we would like to have in a consistent theme in our investment portfolio. We are sticking to that theme. It continues to play out. Price we are going to focus on china. Earlier this morning the first on short Chinese Companies default it on its debt. In hong kong with details. First of all, tell us what this company does. Midsized small, Company Based in shanghai. It makes solar cells. Of 200 million last year. Was supposed to be paying 14. 6 million, so it came out earlier this week and confirm that a few hours back that it can only afford to pay 600,000 of the 14 and a half million. Its not only the solar industry. It just so happens its a Solar Company that owes interest at this point. A note. E out with they outlined several other industries where we could see more default, and mostly these are the sectors where you had the Chinese Government trying to scale down overcapacity. Francine . In terms of wider implication, it seems a lot of margin participants say china allowing this default is a good egg. Thats right. They have to develop the bond markets. Its a Lesson Learned not only for issuers but for developers. They have to reprice the credit risk. They are trying to lessen their dependence on bank lending and shadow banking. The problem now, the short term pain is that we do have a lot of highly Leveraged Companies in china. It has doubled and tripled the total amount of debt. The number of companies with debt to equity ratios of over 200 has gone up by 50 . When these Companies Hit the markets they could be facing higher capital costs. Inks so much. Lets get back to Andrew Wilson. In terms of china, this is the government saying this can happen. Its almost like what the fed did a couple of months ago. Its a warning. Have had excessive growth in china through credit creation. I think this is the first sign chinese authorities are saying to investors there is risk when you put money into credit, and you need to be mindful of that. It is a form of credit tightening. He think that is going to be a theme through the remainder of this year and next year as well as authorities try to rein in credit creation. In a way thats a positive sign we are developing healthy Capital Market where companies are taking excessive risk and end up defaulting. I think we take that as a positive sign. As long as as long as it doesnt result in something much more serious. I think its the first step in terms of developing a much more open credit market. We have investors understand there is credit risk. A healthy development. We dont want this to become a more serious problem, but i think it will cause people to at exposuresefully they have. Does it remind you of the huge changes china has to go through in the next few years . Some say there is a level of consumption. We have never seen anything like it. I think china is going through a transition. We want to see chinese growth be more sustainable. The authorities came out with a growth target of seven and a half percent. That is unchanged. Take itmarkets didnt that positively because it is sustainability of their growth. Its the quality of the gross people are questioning. In the past we have got into higher growth levels because we have had the government to fixed asest in, providing credit they rein this in. I think the question is what growth rate to we transition to. Are we seeing consumption pick up . For 14 andorecast is a half percent. Last year it was only 13. Its not so clear if you look at disposable income that we can cb increase in consumption. I think thats the question we investors have. How do you get to a more Sustainable Growth rate, and what is that growth rate . It seems likely we will have a downshift of growth over the next two or three years. Is it a one thing that worries you most. If growth really overshoots expectations, a lot of sectors will be hit quite hard. We know china is the worlds secondlargest economy. If we see a sharp slowdown thats a big deal. I think if its done in a way we see a slow move to a more Sustainable Growth rate and were not sure what that is, theres probably a way with a fixed handle, i think it would be taken positively. I dont think people believe seven and a half percent is sustainable, and therefore, its debatable. Here in london it is Jonathan Ferro day. He joins us with a preview of jobs figures. I am not the only analyst who gets excited about these numbers, in particular not in london, but i am going to get the numbers out of the way. The market is going to be looking for 149,000. This is crucial because this could bring the threemonth average down to 112,000. Last year the average payroll growth was 194 k, just around the magic 200,000 number, the very number a lot of people use to taper. If in doubt, blame the weather. It looks like a intend to do that with mentions of the weather in triple figures. One question in my mind is would they have begun to rein in stimulus of these were the job markets in the final three months of last year. Been a massive call. How high is the bar at the monetaryconsider policy . Pretty high. They are talking up the change for them to even reconsider with a clear reference as to whether they will change their outlook. The fed president of philadelphia. Listen to the recent comments from the sky. He is talking about the fed not being aggressive enough on tapering, suggesting they may fall behind the curve. Manis catches up with him. It will be a fascinating interview. Look at the unemployment rate. Rate policy is where things it a little more interesting. Is just. 1 from the threshold they said they would use to consider a rate rise. We know that is not the case, and we know that threshold is redundant. One thing they need to do is change their guidance on that particular issue or drop it altogether. Thank you so much. Thats get back to Andrew Wilson of Goldman Sachs. Im not that excited about jobs. We have had such wild not suretes, and i am what were looking at anymore. I think the market is really struggling. Janet yellen talked about it in her testimony. They are not sure how much impact a weather is having. We always get excited about payroll. It is an important day. Whether it is going to have that impact i am not so sure. I am not sure people recognize the weather is playing a big part. We spent so much time trying to calibrate the impact on the numbers. Eras of broad number of market indicators. They are not all week. The hiring expectations are picking up, the time it takes to fill vacancies are actually extending. Thats not consistent with the payrolls we are seeing, so trying to calibrate how much that is worth is proving difficult to. Frankly, it doesnt change. To investors even ask you about the u. S. Anymore . You are confident it is in recovery. They indicate the trend is there. I think there is some doubt as to whether this is a convenient excuse or if there is Something Real going on. Build inbig inventory the second half of 2013. There is some unwind from that inventory rebuild. If you look at credit card spending and break it down by region you see credit card spending is doing quite well in areas that have not been weather affected. It gives us confidence we are going to see a soft q1, but that is going to be augmented by a strong q2. We think three percent growth or three and a half percent growth is achievable. We want to see the numbers start to improve. We are going to have to wait at least one month. It is still impacting activity. Its likely to be another month for we are confident the recovery. Given all this, your favorite investment pick is still u. S. Equities, although they look more expensive than european ones . European relative to the u. S. We think the valuation in the u. S. Is full. We think u. S. Rates are moving higher. We could easily see it at three and three quarters. Pretty confident of the u. S. Recovery story. Thanks very much for that analysis. Coming up on the program, the largest distiller wants to throw you a cocktail party. Find out why the next frontier is your living room after the break. Welcome back to on the move. Here are some companies on the says the the Company Price wars may threaten the docomoar forecast. Ntt 5c to winand subscribers. Be speakingaid to with banks about raising its credit facility. The Digital Music service is said to be working with Goldman Sachs. It is also an investor in the company. And they go straight to the fund by shipping to customers living rooms. They make sticky cocktails. Mixologists are on offer for vintage cocktail nights. Lets check with the markets are doing. The equities are heading to the first weekly did klein since january. We are expecting that report morewill probably show jobs created last month. Dollar yen is the one we should be watching out for. Coming up we talk about luxury of and. Ovens. Of and. Welcome back to on the move. Im Francine Lacqua at bloombergs European Headquarters here in london. Lets get to one of our top stories of the week. Lets go to our european editor, david tweed in brussels now, on the ukraine. Did the e. U. Actually manage for once to speak as a united voice yesterday . Yes, for once, that is a good way of putting it, francine. I think the European Union managed to get the hardliners like the lithuanian president onboard. The European Union is trying to catch up, because anyway, we already in europe decided to starting to do some sanctions. Not everything, but some. And that council repeated that it is a brutal act of aggression. It is good. Some of the Baltic States wanted to go in there straight on with travel banned immediately with sanctions. They had this staged approach come to russia doesnt the table, economic measures ill be taken if russia ups the ante in ukraine. One of the key things also is the fact that they are going to go ahead and sign a Partnership Association with ukraine that the previous president Viktor Yanukovych threw out in november in favor for going towards russia and the political chapters include a gradual convergence in foreign and security policy. That is like waving a red flag at mr. Putin. What are we talking about when we talk about the big economic consequences for russia . Yeah, this is going to be the big guns. If russia actually destabilizes or further moves to destabilize the situation in ukraine, there will be economic consequences and david come ron put it cameron put it very clearly what they might be. It makes it very clear there will be farreaching consequences. Let me read you what it says. Any further steps by the Russian Federation to destabilize the situation in ukraine will read to additional and far reaching consequences. And cameron went on to talk about the consequences would ricochet in the British Financial Services and you can get an idea what they might be. Just to be absolutely clear, those economic measures wont be taken until they have had quite a lot of meetings down the road and this is only if russia really ups the ante in ukraine which is going to be the center of all the negotiations, the diplomatic negotiations which should take place over the next few weeks. Thank you very much. These are the Bloomberg Top headlines. Crimian lawmakers called a vote for march 16 to return the peninsula to russia. U. S. President obama said the proposed referendum would violate the ukrainian constitutional and international law. The proposed referendum on the future of crimia would violate the constitution and the international law. Any discussion about the future of ukraine must include the legitimate government of ukraine. In 2014, we are well beyond the days when borders can be redrawn over the heads of democratic leaders. Well, obama told russian president putin in an hourlong phone call that russias actions had violated the cultural integrity. Chaoris failure to pay would make it the First Company to default on the chinese bonds market. We have it confirmed they have been confirmed the First Company to default in china. Nakamoto was chased by reporters to los angeles. He denied any role in bitcoin. The main reason im here is to clear my name, that i have nothing to do with bitcoin. Nothing to do with developing. I was just an engineer doing something else. Invented and marketted by a world war ii spy, it has a unique pedigree and a celebrity following. The british brand a back and ready to take on the world. Hello. Im Martha Stewart. Ive written several cookbooks. Today i would like to talk with you about thing aa cook stove. Aga cook stove. Celebrity which he was, performers, prime ministers and royalty have joined the aga club. There is something exceptional about the design of the aga. The secret to its success is its dense cast iron shell. Food is cooked by radiant heat, not heated air. In the last 10 years, there is a big switch in the fuel tank from oil and gas to largely electric. About 2 3 of them are electric. Inventor invented it and it was brought to britain in the 1930s and reinvented by a team of engineers and marketers. The earliest and most successful salesmen, original ad men and bee. D war ii spy, david ogle it is assembled by hand. Sales plummeted during the recession forcing the company to lay off 1 5 of its workers. It has been a tough few years, but on the factory floor, transition is afoot. These new cookers contain electronics, unlike traditional agas, they turn on and off controlled by a smart phone and they are selling. I think the modern aga is actually the best that we have made. Thats why we think aga can go from being a successful niche u. K. Brand to a global product. For more on agas recess pi for recipe for success, were joined by the companys c. E. O. Thank you so much for joining us. You just released some results. I guess it has with the resurgence of the u. K. Economy, doing pretty well. More people are buy houseses and the celebrity endorsements. When youre looking at the overall market, mortgage approvals is something we have tracked for a long time. The tide turned in the market. Tracking on a plateau takeoff and at the end of last year, 70,000. The governor to have bank of england things it will reach 90,000. Thinks it will reach 90,000. It will start feeding through to more household expenditure. Youre more on the high end. If you can afford a 4,000 pound oven or stove, you may not need a mortgage. Is that fair . That applies to a part of our market. We also have our range master market, people who are moving home, trading up. Those mortgage approvals do matter a lot. We also have to look at the product we have for that improving market. F you look at the aga, we have reinvented the gget product. They have looked at maybe the younger families but also with the new product were going to be introducing in the summer this year, which is actually a twoovepb version, only 24 inches, it is aiming at a more urban market. Youre selling lifestyle. If you own an aga, it is a certain lifestyle. Happy family. Youre one of the Luxury Brands in the cooking space. Absolutely. Basically you see the imagery that we have developed and it is the way that people want to live every day and come home to a nice, warm home. It is a warm, welcoming home. We want to bring that to a wider group of people. Maybe the market is something that we should attack as well. Maybe people who can turn on their aga on the way home. Actually having an aga in the city is something that is a new area for us. We will be oating a store later this year. This is basically to capture the flat market. Am i right . Usually these are very heavy so you put them in houses. Basically, what we have done is it is much more international. It is a simpler product. You dont need a flue. You can take it not just to a u. K. Market but to an international market. O to america, even china we can start looking at those as important growth opportunities. I was going to ask you about that, actually. You say youll benefit as the number of households increases. As long it is a house market in the u. K. Is strong and stable. In terms of expansion, you mentioned a couple of companies. Where do you see the most demand coming from . This will have to be on lifestyle. In the states, we have been there for a long time, since the 1930s. You saw Martha Stewart there. Now with a simpler product, electric, which is much more flexible, that certainly brings america into play. In china, we have a partner out there who came to us because they could see there was a future for range cookers in china, again, because the lifestyles are changing. People dont want to have the small type kitchens that you could so often have. What treal happened is that britain invented the idea in 1930s and it is still very important today, living in the kitchen. The kitchen lifestyle. Not cutting someone off doing something in the kitchen from the rest of the family. That may get some resonance now. Accreditation, one of our ranges has a burner. That is a fusion product. Do you have to cater for local obviously youre talking about which probably sell a little bit less in the u. K. Do you really have to cater the way that i cook. Im italian. Different than the way that an american cooks and the way that chinese cook. The thing about aga is that it can do all the times of cooking. Whatever your style. I think we can highlight what you can do, particularly with an aga. We talk about the world in one city. A cosmopolitan city in london. Were going to show that the aga can cook whatever style you want whether it is a chinese style or american style. Youre going to find somebody cooking in that style. In five years, where will you expanded the most . Your Sales Performance could be drastically different. Because you wont 30 sales from china. Is that too much . Factor. Is range rover there is a u. K. Revival in midlands manufacturing which we are one. How is that going to impact on us . I think we have every opportunity. The product range we have now to really crack some international markets, we talked about america and we are also very enthusiastic about france. We set the target, half of our Business Needs to be outside the u. K. So were not so vulnerable to the u. K. Economic cycles. Well have to get you back in that. K more about coming up, could this be the mysterious inventor of bitcoin . We have that story next. Im Francine Lacqua here in london. This is on the move on Bloomberg Television stream live on bloomberg. Com, your tablet, phone and any Windows Phone as well. It is a bit of a mystery at least, the published paper on bitcoin. Caroline, im obsessed with this story prment quite an exciting tale. It sounds like a film script. You have 600 million fortunes. Car chases. A man, Satoshi Nakamoto, who supposedly, everyone thought this was a pseudoname. News week claimed to have found him living of all places in los angeles. He is a 64yearold physicist apparently. Dorian s. Nakamoto. He apparently changed his name. The question now is he denies it of course. He said the first time i heard of bitcoin was three weeks ago when my son called me about it. News week says we stand by the story. We confronted him. He said i am no longer involved if that and i cannot discuss it. He tried to go for lunch and was hounded by the journalists and was holed up in offices. The main reason im here is to clear my name that i have nothing to do with bitcoin. Nothing to do with developing. I was just an engineer doing something else. The mystery goes on . It is such a great, great story. Bitcoin fans seem a little bit cynical. They are. The big question has to be why on earth would he not have changed his name properly . Satoshi nakamoto wanted to be anonymous. Why on earth would he have used his real name when first launching this code . He has done everything he possibly can to stay anonymous. Why make it so easy . That has got to be the question. Really, everyone who is involved in bitcoin seems to be up in arms mainly over the privacy. If it is really him, they feel his privacy has been exposed and this is a great breach of that. The only way we would really know if this is the real Satoshi Nakamoto is apparently, there is a unique key to make use of bill coin. He has 6 million worth. Really it is a fascinating tale. It is such a great story. Were going to see it in the cinema. That is my prediction, very, very soon. Caroline hyde with the very latest on bitcoin. The pulse is coming up at the top of the hour. Im joined by my coworker, guy johnson. Were talking power tag and then of course well cover this bitcoin story as well. The tech theme runs through all of these. There is a rich ukrainian tech genius on the other side of the atlantic. Whatsapp saw the sale. Were going to take a look at whats happening from a business point of view. Ryan chilcote has some great guests. I know this is a story you love. Youre walking down the street. This happens with me, my wife , walking down the street. Love that bag. Lovely shoes. Where are they from who makes them, we have the guy who is going to make that possible. I know youre very excited. Im so excited and a little bit scared. Im a little bit scared as well. Basically you points your smart phone at any item, it is going to tell you what it is, where it is from and where you can buy it. That is a dangerous combination in my book. Yeah, especially if youre on air, guy. Im not really worried about me, per se, just other members of my family. It could be fascinating. That is going to be a great story. Yeah, im looking forward to speaking to ben wagner of power tag. Hes the guy. Well see where the conversation takes us. Looking forward to it. Im really looking forward to it. Guy johnson with the pulse in nine minutes from now. One of the best known fashion labels is thinking about expansion. The company is on the hunt for acquisitions following double digit growth. Bloomberg gets up close and personal with its c. E. O. Diesels Flagship Store in milan, italy. The Company Began 35 years ago. Now using the name o. T. B. , it bought a stable of brands and has a revenue of nearly 2 billion. Is a at the helm 34yearold. Heir to the diesel throne. He has been involved in the Company Since a young age and even the face of a diesel tieup. Now he has his sights set on global expansion. We want to position o as an alternative to luxury groups. We would probably go after brands and companies that position themselves in the more contemporary and premium segments. His ambition goes to show how positive the group is feeling, even though around them, italy is struggling. I think italy is something that is not only financially and economical. They cannot face the situation anymore. For a young entrepreneur who wants to do their company, i think they are crazy. For stefano, business is also personal. The group is expecting double digit growth, and with the family name on the line, he takes a longterm view. I know for myself, it is one of my beliefs and i know my father has this feeling every morning when he wakes up in morning. He doesnt think how much money will he do today he thinks how can i make this group be here and maintain jobs of my 7700 employees. Final thoughts coming up next. Welcome back to on the move. Im Francine Lacqua here in london. Were almost an hour into the trading session. Lets have a quick look at our final thoughts on the markets. This is the picture for the ftse, the cac and the dax. Were seeing declines on the week. This would be the first weekly decline since january. Were also expecting that report in the u. S. That will probably show that the u. S. Economy created more jobs last month, so watch out for that ch coming up on the pulse, well be talking ukraine and the technology that enables you to take a picture of something and then you can buy it directly from that app. Guy johnson and i are back with the pulse. The shanghai solar firm becomes chinas First Company to default. International backlash builds against referendums in crimea but lawmakers stand by a vote to return them to russia. And the race to find bitcoins founder despite this man denying that he is the creator. And a highspeed chase