We have seen a reinstatement of the dividends, francine. They have stuck to the tripling of the operating profit goal and they have increased it a little bit because of a new way of depreciating aircraft. I will be back a little later to tell you about why some are able to turn on the Inflight Entertainment. All right. Looking forward to that. Thank you. Ryan, you are following the ukraine. People are saying this is a game of russian roulette and we will see what happens. It is exactly where it was in 2009. The s p has risen. We are keeping a close eye on that. We are three days away from the referendum in crimea. This is important. Raises its cash offering for vivendi. It is an extra one billion on the table. Watching . Are we we are watching this whole movement in rhetoric from the u. S. And the ukraine is something that is on the back burner. New zealand raises rates and this is significant. Developed nations have to raise the rates. That is going to be in the midst mix. Performing base metal out there, and terms of industrialized nations. The investment and retail sales disappointed. Let us see what is going on in the dax and it was indicated that it was down a little bit lower. Lets see if we can refresh this and get a truer reflection of what is going on. You can see that we are just marginally higher around the core of europe and something that we were referring to was a few different things. , the worst, copper performer of the medals. Low ine a onemonth commodities and banks since february. One of the longest losing streaks that we have seen. Towards a sixmonth high, in terms of performance. You have some stocks to get to. You are waiting for the number four retailer and the calls of then down a percent or up two percent. They have profit warned and they are selling property over the next three years. Were still waiting for an opening trade to go through. Ands a belgian retailer they are saying lower profits and belgian in belgium. Generally, this is the antiand insurer. The italian they missed where we were a few years ago. Lets have a quick look at some of the currencies. Ook at this we are looking at an interview that we are doing today. It just keeps moving and it is the strongest since 2011. His is one of the biggest structural challenges. You mentioned it and this is an issue. Euro is a value of the that comes into yen ever so slightly. Thank you so much. Manus cranny on the markets. Joining me today is james, the chief Investment Officer at investment management. It is great to have you on the program. Talk to me a little bit about china. We have disappointing news and therems that every day, is something that investors should worry a bit more about. Are you cautious on china . If so, how do you protect yourself . That thesad to say official data has always been i think,iscussion and it is much more realistic. Under of what is going on. There is a warning light out there. The carrier trade is unwinding and the overall picture. I am cautious on the outlook for china and the credit bubble that i suspect will unwind messy in asia. m not optimistic none of this is priced in. The markets will freak out when they realize what is happening in china. The thing we had to argue is that the key Central Banks remain accommodative. All, we just had a 50 basis points adjustment in the u. K. I think quantitative easing in the United States will continue for a while longer. The run rate is 92 billion. T is very clear more than six months of qe . Find it inwe will the states beyond september and we have at least six more months of continued buying. Even then, there is no expectation that the rates will continue to rise to support the bond market. It . Ou are not expecting i am not. It is a high risk premier and it was in favor of equities. Corporate earnings numbers are good and very supportive. The indicators are not bad and we still have investors and the asset class that our team to apply money. Us your favorite asset class for the next two quarters. European equities. There are fantastic opportunities and i love the results this morning. Tohink that the chair needs be over 20 euros and that is what i am looking for. I want to ask about some of your top text. Ill ask you about vivendi. The chief Investment Officer. , here is what else is coming up on on the move. We will have more on the takeaways for the worlds biggest economy. Talking about plans to triple profit. The efficiency push is taking off and we will have more on that next. On thelondon, this is move. Were streaming on your phone, your tablet, and on bloomberg. Com. This is one of the movers we are watching this morning. It is down 10 in the trading session and this is after we had comments from the Supermarket Chain that said that the forecast of annual profits will drop. It is 10. 7 lower. It is losing the most since 2004. We are getting pictures from angela merkel, who was talking in parliament in berlin. Lets have a look at the live pictures that we are getting and she is updating her fellow parliamentarians in the ukraine. Ryan chilcote is with that story. Well have more on that. She has been saying, and this is something we have heard from other World Leaders that the crimea vote is unconstitutional and that russia is exploiting the weakness of the ukraine. Any breaking you news from merkel. I sat down with george soros an exclusive interview and i asked him about him seeing a Market Correction in china. The marker ofeen andth for the last 10 years since 2008. Growth as theig a american consumer. That eventually ran out of resources. It is also running out. Without a growth model that needs to be changed. . Is that your biggest concern are you expecting a Market Correction . I think a Market Correction is occurring right now. Hink the authorities are the chinese authorities are dealing with it. You know, the growth was maintained in the last couple of years by smoke and mirrors. It was over invoicing exports. That there anything u. S. Can do or should do to give a heads up to emerging markets . Do they need to be more inclusive . It would be better if there was coordination. Time, the u. S. Economy is actually relatively the best functioning. It is a reflection on the global economy. Still with us is james, the chief Investment Officer. Thank you for staying with us. We talked about china before him. We are seeing a little bit of correction internally. You are cautious on china. A lot of people are cautious on china. How do you play it, from a portfolio point of view. Was overrrent problem extension of credit. It was bizarre, but true. Discovering that they have the capacity to have stronger Balance Sheets and led to an economy that is beginning to recover. Up andn banks can trade there is plenty of upside. I think some european banks are going to be very interesting. This would be something that you would take a position in ahead of the asset quality review for periphery . Think the banks, italy and france, they are well played and the asset review is clearly going to be something that they have a lot of interest in. I think, at that point, the market can decide to move on. Do you want to invest before . That wenct in this is had to take a position ahead of the review. That is one of the things that george soros is saying. Baking stocks inappropriate are still depressed. It is down to. 2 . Is this something that you own . U. K. Growthbout the story. 5 billion in support for the consumer tape from not Domestic Support and i am not sure that that can be repeated. Pretty billion in sterling came into National Accounts from compensation payments from the banks and back to consumers. In contrast to the state where it was with the government. If you anticipate that the numbers were a duck, you have to assume that the consumer is going to remain extremely cautious. I suspect that the Strong Movement says a lot about how and theye anticipating are going to begin to behave. They will support the upper end of the market. In the middle, where it is heavy in real estate, it will remain badly squeeze. Exactly, that is why morrison is down. Propositions are difficult to change quickly. They have to reposition themselves . In the middle is where you get squeezed if you are a supermarket. Yes, exactly. With electrical retail space, everybody said that you wanted electrical retailer. If you look at how well dixons is doing with their capacity to sell, theyre outperforming their competitors and the idea of it is proving popular. Profit margins are rising. Who would have said that in the midst of the recession . Bright cant are reinvent themselves. The only fly in the open is that the real estate is in poor position, relative to where it a need to be. You have not mentioned in todds a. Is it airlines in general . Did falle purchases and so did productivity. Build is, the new going to be much less depressing of prices. At the lufthansa possibility of lower fuel costs. Traffic numbers should rise reasonably and looked onto is very cheap at the moment. That is one of the things we are watching in todays trading session. The chief investment of the investment management. What else is coming up on on the move . Lufthansa, we were talking about the german airline. They make a big bet and they have all the details after the break. The banks will release their annual report later this morning. Ons nichols will be speaking uber gv. Do not miss the interview. Welcome back to on the move. Here are companies on the move. There is a bit for the cash component. Push. Proved offer hiring a veteran. Spent 20 years at nissan and ford. His experience may benefit as they push into markets like china. Consumers are turning away from lean cuisine. Hardcuisine is being hit by the fact that the lowcalorie dinner is to unhealthy and expensive. Thing that we are watching is one of the big losers in the trading session. More since released earnings this morning. There is a profit job and trying to sell property. Manus cranny joins us. , u break it down you have stores they will not stores that they are already using that are over 300 million pounds. And we are getting rid of the bank business. Use and it iso like getting the bazooka out. You take the 2013 numbers and you slap down all of the writedown. At the same time, you take the crown jewels and the property. Ortfolio that is why institutional taking thatve been billion pounds. Your feed in with price cuts and strategy to revamp the stores. It comes into play this year. This is a big statement by dawson phillips. They are losing market share budget conscious shoppers shop there. Yes. That is 100 correct. Business andn there is record sales. Is 33 in the 12 weeks at the beginning of march. We spoke to institutions and they said it was not just the germans in markets. They got it wrong and they went after higher and fresh food at the time when everybody was turning to other brands. That takes me back to look backwards. That theyn warns should not ignore the core customer. You can blame the germans. It is fine to blame the germans. When you are in the isle yourself, that is not getting anywhere. We have a profit warning and they say theyre making half as much next year. On theve gone all in bazooka. That is why the stock is down. Manus cranny is there. Lufthansa is high after posting full earnings. The carrier says that they plan to triple profit within two years. David tweed has been covering lufthansas turnaround. What will drive the prophet gain . It is all about the shorthaul tom subdivision brands of the german wings carrier. This is a lowcost carrier that looks as if they are transitioning shorthaul flights that are working well. The other thing theyre looking at is upgrading the premium and firstclass business. Ande adding premium economy this is being reflected in the share price. There are big gains today. It is up as much as seven percent. To thell the way back up highest since the end of 2007. Lufthansa is going to allow us to turn these on during flight. This is an android, a samsung android. We will be able to stream Inflight Entertainment onto mobile devices. That is going to be available on flights to north africa and the middle east and some of the former soviet republics soon. Quickly, it is dangerous, yeah. You could say it is dangerous. The ceo said that it is for that reason that they are not going to take this product that is coming out to israeli airlines. Lufthansa says it is absolutely safe, francine. Thank you very much with the latest on lufthansa. Coming up, tensions are approaching cold war levels and moscow is preparing for impending sanctions. We will give you the latest on the standoff next. Move. Come back to on the these are the Bloomberg Top headlines. The chinese from your sister there is flexibility around the growth targets of 7. 5 . There is a slowdown that leaders will tolerate. The january through february industrial output rose through january. Intnam failed to find avery an area where chinese satellite images showed. The search for the malaysians airline jet enters a six day. That is according to the wall street journal who say people who are familiar with the details. Russian government officials and businessmen are preparing for sanctions and retaliation for the ukraine crisis. Merkel says that therell be new sanctions on russia that are unavoidable if Vladimir Putin does not diffuse the crisis. The 21st century and we do not solve conflicts through military means. We do not invade these complex. We are ready for dialogue and that does not have any effect. We will take into account sanctions. Speech at the bundestag has finished. She says that she is going to ds going to ukraine tensions. She is also saying that russia is risking economic and political harm to itself. Stay with ukraine,. Obama is canceling or postponing ukraine that could make part of russia. Ryan chilcote has the latest. We just heard from merkel. We heard yesterday from president obama that the rhetoric is heating up. We have a sense that the rhetoric is ratcheting up in the west in the United States and in the address to the bundestag. I think the key quote here is that she said that europe must stand up to russia. Wood is interesting about that is that people single out germany as the least likely to stand up to russia. Of the natural gas that comes from russia. 50 billion worth of exports to russia every year. The fact that she is talking tough is significant because they are seen as the weakest link in getting russia to do something and because of that skin in theeconomic game, if you will, merkel is seen as somebody who could resolve this and somebody that Vladimir Putin would talk to. How is russia taking this . They seem to be taking this seriously. The kremlin is sticking to their ground. Because theyre taking this seriously does not mean that they are losing resolve. We are talking to people who are inside the preparations at the kremlin were talking to business and they are ready for sanctions. What does that mean . That means that russia is ready and preparing for the possibility that reserves to be frozen and banking reserves to russiann and lending to companies to be frozen. They say that this is the worstcase scenario and a lot of them are saying that this would a road all decade of Monetary Policy gains in russia has come a long way. At the same time, you do not see youe desk you not see do not see anybody sure away from the competition. Thank you for that update every we will be keeping an eye on the situation with anything that we here. Turning to turkey, protests are continuing across the nation. We are joined from istanbul with the details. Bad and turkey again. Tens of thousands of people andhe streets last night there were clashes between priests desk the police and protesters the police and protesters. A Police Officer is reported to have died. Last year sense of plus antigovernment protesters the once again, police used force and protests are expected to die down today. The conversation is continuing and people are expressing their anger against the government and their grief. There is mounting pressure on the Prime Minister. Protesters are angry and want justice. The Prime Minister refuses to show any responsibility whatsoever and he was on live tv yesterday saying that he did not about hisuestion death or show any consolation. That is what people want justice. Thank you so much. The annual meeting of Chinas Parliament concluded stay after a week of policy debate. For more on what is next, we are joined by the founder of the China Market Research group. Every day or two days, we have disappointing news for china and markets choose to say that the government has everything under control. Are you optimistic about . We have a large correction because of what china is going through. Is great to see you and when i was here, i said that Consumer Confidence is at the lowest i have seen and that the economy is quite weak. What we see as the feeling that im getting the consumer translating to low retail sales. 11. 8 and Industrial Production came in at 8. 6 growth. It is lower than what most economists estimated. It still remains very weak. Investors remain cautious over the next weeks. We are seeing consumers getting quite concerned and, that being said, we have seen wages be relatively strong in the new year. We are going to sue the government allowing slow growth and you are not going to see massive quantitative easing in the next month. I expect them to do more of that during the year. The next month will be a week time frame. Interesting. Overall, i said that he has doubts about the growth targets that they put in place. Is that you optimistic . I think it is easy to get to the growth target. The government is building the largest bridge right now between northeast china. It is easy to juice up Infrastructure Projects and hit the gdp growth number. The bigger issue is, to the government care about it much mark what are the harmful things the economy by trying to go to 7. 5 . Im concerned with the increasing of nonperforming loans and im concerned about the government putting more power. They seem to think the problem with the economy is not nonperforming notes loans. To seeree that an like it dismantled to allow a more market economy. You are seeing, and the internet textbased, theyre waiting in gaining Financial Services because nobody likes going to stateowned banks. In certain parts of the economy, we are seeing more of a market economy and im thinking about the First Corporate bond default that we saw on shore. Is this an indication that they are trying to manage and give give him more scope for default . Is a great point. They allow default in the Corporate Bonds and the government is allowing more companies to go bust in the next year. Financial regulators have told everybody in the industry that they expect one small bank to go bust and will not protect as much. That is not good. Right now, there are freemarket reforms at the lower end and theres time to strengthen the state owned enterprises. It is disconcerting. It is not about growth. It is about Sustainable Growth. The premier said the right things. He says they want Sustainable Growth and it is about wages and unemployment. The problem is that you still have local officials were pumping up gdp growth numbers. They want to get tax revenue and you see steel still growing tremendously. You are cautiously optimistic about china and what is the read across the emerging markets in the area . China inry cautious on the next one month. Tourism, im to cautious. , im cautious on thailand and the philippines. I think that indonesia will outperform because of the policy for consumers. More and more chinese are going up her towards him and they are making the right out there for tourism. Too expensive. Indonesia is good. Most of the rest of Southeast Asia is pointing negative for the next three months. How long will you be cautious on china for . Is going to take more than three or four years for a huge economy to stabilize. Am i wrong . The problem is that you are having production going bad and there are exports to the United States and europe. Consumer confidence is going to come back when you see wages and chinese new years bonuses. Show that and guppies show the labor market is strong, you will see a bump up on retail sales. This is very similar to what we saw last year. Last year, after chinese new year, everybody was scared about it stayed strong. Everything remained it ok for the remainder of the year. Have 7. 27. 5 growth. But they do for all that. The founder of the China Market Research group. Coming up on on the move, a highspeed car chase. Find out when we return. Then london, this is on move on bloomberg television, streaming live on bloomberg. Com, your tablet, and any windows phone, as well. The bundesbank will release the report. Hans nichols is on the ground where you will speak to the bundesbank president. What we be asking him . Telegraphe, i cannot what im going to ask him. Thes probably watching network all morning to see george soros it up on the germans again and your interview with him. 10 00, we will talk about the report under embargo and there press conference. Then, we will have our interview. What is he going to say . Is he going to refresh his criticism and how strong will it be. There is a crucial question. Where is he on slack in the economy. How good of a measure is that . Francine, how strongly will he come out for the publication of the minutes . The question is, does he want to remain anonymous . Does he want it of what we had on the board for every position of the European Central bank. A few questions. We will break it down. I cannot promise that we will move markets of the interview. We will have fun. I am keeping the faith. Hans nichols is interviewing the president of the bundesbank later on. Asrench conglomerate approved an offer. We are joined with the very latest and this is by no means. He end of it the finished life is in sight and the board is meeting tomorrow to choose between the two suitors for the mobilephone unit. One has the momentum and they have picked up profile allies ,ighprofile allies and iliad one important player in the French Telecom space. They say that is the best deal for french consumers. All that said, you would be wrong to say it is completely done. There could be a higher offer and vivendi could stick with the original plan that was to spit it all to that split off to its shareholders split off to shareholders. We are keeping open the possibility of surprises. To increase the offer at this point. They can decide on other factors and the g1 is regulatory risk. It looks more fully valued and they have proposed reducing the number of mobile players. That is difficult. A similar deal is getting significant pushback at the moment. They are thinking that this is not so good for consumers and will raise consumer prices. Vivendi could look at a projected regulatory review if this does get flagged through at the end. The question is if shareholders want to carry it out. What does this mean for the rest of the Telecom Landscape . Stabilization to price wars that have been going three gou can get a thanks toge in france what iliad was offering. And ifreat for consumers youre running a telecommunication company, that is not sustainable. That doesnt allow you to do the things that the government wants, invest in highspeed networks. Going to three players holds that. Theres a promise of an and to those price wars and a more stable landscape. And, of course, for employment. Thank you so much matt campbell. The pulse is coming up at the top of the hour and we will keep you updated on the search for the missing airliner. You up on the situation in turkey. We will also have more from the ukrainian Prime Minister who is. Eeting with president obama here are copies on the move. Ceo and jerod howser. He sits on the board as a heernment representative and is seen as a leading candidate. Website hascing people standing through images for the missing Malaysia Airlines jet. Graphic. In web it missed analyst estimates. That compares with a loss earlier. Net profit is further in line. Zombie thriller took home the top prize and it is not the only one. Jonathan ferro has more. I did not know. And you aredeal finding games after work. It gets our attention. It will pass 100 billion this year. And United Kingdom and United States, this industry is bigger and it is right that there recognize. Auto sold 800 million worth of games. They did not touch the size. In terms of this industry, it is on a decline in some areas. What about the mobile game games haveark come into play and they are highly aggressive and cheap to make and five. Andalked about the word theyre not a big fan of it. You see them coming in with the aps the ipo. It is a valuation that is up. I have seen some good stuff about this. Is that justified . A lot of people will talk about it and this is forcing traditional game makers to rethink their whole business model. There is so much so many questions. That you so much. 93 billion. Unbelievable. A huge industry. You cannot ignore it. I have sons. It will be coming soon. Stay with on the move. The final thoughts are next. Welcome back. Lets check in with administrative. It is a disappointing day from china. The markets are not doing much. They are down. They are about the size of your thumbnail. That what they have to say to our college could be market moving. Yes. We had a great week here and we had christian been today we have a cap on the euro. Is that what the ecb want to do . Vicariously, drug he cannot do it in words. We will find out what he really thinks and we will leave it there. We will go to the problems for a lot of these Supermarket Chains. Stay with bloomberg tv because the poles is next. Bloomberg has learned that the Malaysian Airline jet has more signs point to an economic slowdown. Weighing in on Monetary Policy debate. The bundesbank chief. Good evening to those in asia. Welcome