States. This is the pulse. Also, gob, will andy murray keep his crown . Wewill be in wimbledon and will be digging into the business with fernando. Business of tiny art. The artist who makes movie magic with contact lenses. Our top story. Bnp is close to paying a 9 billion fine to settle allegations it violating u. S. Sanctions. S joins us. How does it stack up to other find banks have hated and how much damage can it do . How does it stack up to have paids banks and how much damage can it do . With possibly 9 billion. Less than originally estimated about three times the amount paid by others. On a guilty plea, number one. They paid almost 3 billion. The most feared regulator, the justice department, extracting a guilty plea. 9 billion. From doing their dollar transactions. A numbertand it is for of months. Their ability to translate the dollars. That is a progressive statement from where we were. They are not going to be nsactans act tra dollars. Not lucrative but in Central Services . Right. They lobbied on it. It looks like, it looks i we are nearing the end of this particular saga. Once 30 once 30 members. We know a number of people are gone. Chief operating officer left. Meant business. Every time we see one of these cases, it is getting harder. You think about you as to us about why regulators said bnp is more egregious. What i heard is they deliberately stripped the code too high the origin of where the money was coming from and pledges it is more due down what Credit Suisse was doing. I havet know what to think about which is worse. I think you is right. The word egregious is the one we come two. Regulators are going to more soate and even than ever before. They are going to come in and they are not being open and handed over all of the documentation and this is what happens. Almost one year of your earnings wiped. Bonuses and that is how they pay . Number of options. As two zippers on the bloomberg terminal, you can ensure the next 20 will be, how would they pay for it . The dividend, the bonuses . Raise capital . The word egregious is a play ball. Omes in, we appreciate it. Ge has finally sealed is a big is acquisition overcoming the last hurdle for the acquisition of alstoms energy. 20 gues agreed to sell it stake to the french government. Lets bring in caroline. It has been dragging on and took several twists and turns. The french government asking them to make a rival offer. Ge has got it. Give us the playbyplay. What happened in the final hours . Veryll, it is been a difficult especially in the last hours between bouygues and the french government because as you were mentioning, the frigid government wanted to intervene and take a 20 stake in alstom. Last night, they finally came to an agreement with bouygues where they compromised where the state will buy a 20 stake in the next 20 months. There is no fixed price according to the economy minister will stop bouygues wants 35 euros a share. 28 euros affered share. However, the economy minister said it was a good thing for alstom. And we talked to the former french Prime Minister about alstom and heres what he said. It is a good chance for france and a good choice for the company. I think very high in the agenda was the question of jobs and this has been quite well taking into account. That decision capacity and france and that is a good decision. We also got some reaction from the ceo of alstom this morning. In a conference call, he said that thanks to ge and the transport business will probably be seeking acquisitions already. Wasceo also said the deal [indiscernible] and the french taking a stake was a good thing. And theceo of alstom ceo of ge will go to the east of they havere thirdbiggest factory and also where ge has a factory making ga s. Thank you. Eu summit as said to be a tense one where politicians have been lining up behind jeanclaude juncker. Much to the dismay of cameron who was standing in his opposition. Hans nichols has been following the showdown. Give us a sense of the horse trading. What does the centerleft get in return . We know they got one position and that is the president of the European Parliament and that is Martin Scholz who is a centerleft candidate. The social candidate for the eu commission. The big question and a lot of speculation this morning is what to do they get, the leftwing wing politicians, in terms of concessions . Did they get anything on loosening . What did they get there . Center politicians meeting in paris to give their support behind junker making it likely he will be elected president of the eu commission. There is opposition. Cameron. Ned david the swedes are opposed added the dutch. What it means is the meeting will be thursday and friday in brussels and to what extent is it going to be accomplished, a finished product . Or is there more horse trading to take place . We are going to try to get to the core. When angela merkel, when we has a photo where they were in a boat in sweden, what she did there was she says she wants to buy more time. It looks like we may see junker coordinated . Cameronudit being is if pushes for the vote, he could get to the outcome he does not want. Junker president. Coming out of the meeting he will call for a quick vote and it can be done and over by the end of the week. Merkel support seems to be more firm and harder for junker. Before, she was always saying she was for and privately she was not quite back and killed. Now she is in his camp. We have to see what it means policy wise. So much. Nk you thank you so much was a hans nichols. John kerry has landed in iraq and he is in talks with maliki and other political leaders after a witness saw gunman take over all border with jordan and syria. Elliott gotkine have more in tel aviv. It looks like things are going from bad to worse. What is the latest . Laste challenge in the hour or so, we heard reports coming out that if the have carried isil out an attack on a convoy that was transporting prisoners between jails. That happened south of baghdad. It left 50 people dead, according to reports. John kerry facing a big challenge as his violence is carried on a daily basis. We saw the insurgents taking over the weekend as well. He will be there to cajole the politicians and leadership in iraq to settle the sectarian differences. Look out for all iraqis including sunnis and the minorities and kurds and everyone else. He was in egypt over the weekend and that was something he spelled out. It is a critical moment where we must urge leaders to rise above sectarian motivations and form a government that is united in its determination to meet the needs and speak to the demands of all of their people. There is no, guarantee that any new government will be able to left the morality of the army. Their searches now the insurgents now have the secondbiggest city down to a city in the west. Olivia . Elliott, clearly isil, the territory they have is spreading. The safety of oil assets, until now, we were told were safe. What is your understanding of how safe Oil Production in iraq is right now . Isthe refinery in the north the largest in the country and the government said it it has managed to beat back attempts by the insurgents to take over the refinery. So far, reports, the second largest producer, have largely been unaffected. To complicate matters further, the northern part, the kurdish region tom has been exporting what out the blessing of the Central Government judge the kurdish region, has been exporting without the blessing of the Central Government. Lovel, there is little lost. No relation between the two. Back in a time when the british ruled in of the parts, there was a pipeline. Those days are long gone. Elliott document thank you for joining us. Joining us from tel aviv. Lets turn our attention to a brighter subject. Tennis. It is day one of wimbledon. Caroline hyde has a look. Caroline . Andy murray will be playing in centre court. I will be speaking with some managing editor of img. Back in little bit later. Welcome back to the pulse. I am olivia sterns. Lets get you back to one of our top stories. Ge has won the bid for the Energy Sector of alstom. Deal. Ing is biggest ever lets get to our regex, a managing director. This deal does not look like what a first look like when the ceo of ge proposed it back in april. What do you think of the structure . Does it make sense for ge and alstom . Ge would not have signed it otherwise. I am against Government Intervention in general. But it made sense. It is a Strategy Company for france and provides a lot of of our energy and Nuclear Reactors and manufacturing the iconic tv and saved from bankruptcy. It makes kind of sense that the government got involved. Dont you think there is a risk that Companies Looking at what happened, the economy minister actually asking siemens to come in with a rival bid and that intervention am i to deter a foreign business that intervention might deter a foreign business . Because the bid went through and ge got what they wanted. When you compare it to other government roles, bear in mind, that it was blocked. The u. S. Government blocked chinese takeovers in 2005. Even though the government blocked the takeover by lloyds of ab national. At the end of the day, the deal went through and took a lot of time, but everybody pretty much got what they wanted. Are there any Lessons Learned from the deal . Yeah, the main lesson is that although deals are coming, they face toughness. We saw it two weeks ago. We saw the transaction and not only the French Company involved. Look at the pfizer, astrazeneca in the u. K. You have to take this factor into consideration. I know you said you do not think the level of french Government Intervention is going Foreign Companies off. That aside, do think there are significant reforms that the french government needs to make to improve the Business Environment right now . There are a lot of things to be done. The last time the french government balance of the books were in 1980. War should be done with spending. That should be the number one priority instead of raising taxes. More should be done with spending. It is not doom and gloom. Alstom is proof of that. We have a lot of companies in a lot of sectors. Thank you to fabrice. Thank you so much. As we head into the break, it is time for the the pulse number facade 28,000. Number, it is 28,000. That is the kilograms of strawberries consumed in wimbledon. Well talk about the this is all building superstar brands. You do not want to miss it. In 15 minutes. Stay with us. You are watching the the pulse. Welcome back to the pulse. A quick check on the currency markets. We are watching the pound. Here is what is happening right now. Little change. Above 1. 70. Though most favorite currency among traders. They think is just getting going getting going. They are more bullish on sterling. New energy top headlines. What an half of Global Consumers would consider solar panels and the next five years. And an electric vehicle and the next decade. That is according to a survey. The growing interest in footprint ands achieve more energy independence. Likely toinisters are run out sooner according to Aurora Energy research. The government has incorrectly forecasted prices. The majority of australians want to keep or expand were noble Energy Targets according to data. The government considers scrapping Energy Efficient projects calling for the Climate Institute showing 72 of australians favor the target of the energy coming from were nobles. Time for the hot shots. We start on the streets of india. Er can beof a bmx rid hard. They are often bothered by the police. Watch this delivery driver. The you as hell the ugliest dog contest. Canines from across the country. U. S. H you asked the eld the ugliest dog contest. They said yes a sweet energetic personality. Up, day one of wimbledon. An extraordinary looking dog. Day one of wimbledon as players pull on tennis whites. We will look at the business behind the game. Will be the guest we will be tennis. Director of img the big business of tiny art. Making movie magic with contacts. You can follow me on twitter. The pulse. Ck to here are the Bloomberg Top headlines. U. S. Secretary of state john kerry is in iraq, touched down this morning is the violence escalates, holding talks with the Prime Minister and other political leaders after a weekend which saw gunmen take control of all border crossings with both jordan and syria. Said to be close to a deal to pay up to 9 billion to settle allegations it violated u. S. Sanctions. According to a person from a with negotiations. The person says the bank will probably also plead guilty next month to criminal charges of violating u. S. Laws. Euro area manufacturing and Services Activity weekend in june, further slowdown in frances economy. Pmi data slipped to 52. 8 this month. Look at how european markets are trading this morning. Manus cranny is standing by with more. Weekse out of the last 10 weve seen rising equity markets around the map on europe. Today we have a bit of a breather. ,hese are the survey data rising and expanding for the 12th straight month across this map. It did not cut the mustard. That is a critical issue. Tomorrow you get the Confidence Index in germany. That will be important. Combined with Mario Draghis comments that this is an uneven recovery in the rates will be of for reasonable period time, 2016. The next agenda piece here at bloomberg, what happens at the Financial Policy Committee at the bank of england. I will probably be stuck outside the bank, lets hope the sun shines. If they go to cap lending in the United Kingdom and the very heart of what english people believe are their assets, which are their homes, that is what is going to bite into and it is biting into these builders. The very thought of being restricted or constricted in terms of what you can borrow, is that a good thing . Is that a constructive thing . Is it only constructive for zones one and two in inner london . Perhaps damage to the periphery of the economy in the United Kingdom . Roles in regards to read leading the mortgage market. Rules in regards to meeting the mortgage market. The protagonist that wanted to get all three stocks taking a little bit of a dip. I love jpmorgan junior analytics and say mrs. The currency everybody wants, sterling. That is great. Wonderful. Its just hope the market is not so long it chokes. It is the most coveted currency. Lets just hope it lasts. Nothing last forever, does it . The aussie dollar doing well. Chinese manufacturing data up. Back to you. In 25 minutes, surveillance with tom keene. He joins us with a bit of a preview. Bnp. Will touch on it is percolating, but nothing like the world cup draw. They say draw in england. It is not a tie. Much more importantly, in seriousness, iraq. The situation deteriorating over the weekend. Dr. Croft on oil at 150 a barrel. With his first day of summer, we bring it over to the equity markets. With a great Double Barrel on the equity markets. Tobias lentz gurevich woldegiorgis from citigroup. Michael hall and will join us. Skews me, im joking. Michael hall and will also join us. All eyes over here, also on the world cup, but wimbledon is getting underway playinga, the u. S. Is still, i believe england has gone home. Or have been a few tears here. But what about wimbledon . Are you backing andy murray . I know youre a hockey guy. Wimbledon . Can you get me tickets . I will come over if you and i cant eat strawberries. Can we expense them . I do know, 5000 pounds per ticket. Wimbledon. Ore on thousands of fans are there is the oldest tennis tournament begins today. If youre a low ranking player, even more reason to show up this year. Hallowed turfts has seen some of tenniss biggest battles and since the rise of one particular homegrown player, even more of a battle for tickets. Peaceful. He doesnt get bothered by our members when he comes here to practice. The reigning champion andy murray, opportunity twice as much. But promises a reserved seat for every day of the tournament for fiveyear period. 47,000. 2015, it cost now it will set you back 80,000. The money is being used out revamped the old england club. 170 million for new roof and other landscaping. Fans should be happy and players have a reason to be happy, too. This year they will be paid 45,000 for the privilege of losing. The very first round. 100 pay rise since 2011. It is a lot of money. But for the last three years, we have been trying to emphasize increases in our prize money, because of those players we believe need it most to reach the top echelons in the sport is a very long road and difficult and expensive road. The bills added up. The annual cost of playing pro tennis is as much as 143,000 according to one study. How does wimbledon afford such generous fees for losers . Putting it is by broadcast rights before brush sponsorship. We can make more money in the short term a free access some of those offers, but we would ruin the brand and brewing the moulden if we did so, so we dont plan a ruin wimbledon if we did so, so we dont plan on it. Success now relies on not upsetting the status quo. Caroline joins us live from wimbledon. You a special guest with us. I hear the man whos building the celebrity brands and star players like djokovic. You are right. Im joined by the global head of img tennis. As raynting players such sharp over maria sharipova. How do you turn these players into brands, basically . Of scouts who go to the junior tournaments around try to selectn we them based on the talent they have on the court but also their personalities they show when they play, when their off court. Then we try to build these prints over time, trying to capitalize with the success on the court. Give us an example of the personality you like to build around. You have djokovic was particularly funny. And then access to china. Ofwe are particularly proud him because he is only up there we started to represent 18 months ago. We saw he has an amazing personality that has not been fully realized. On top of that, challenging domestic market. Deliver a book deal with the biggest publisher , hooper traces personality. At the same time, a worldwide with a French Company. It is for food, his dad, his habits, his position about life. With lena, it is a different scenario. It is an amazing story she has in china and now she has become an icon, how she has been able to attract the market with chinese companies, Companies Inside china. In Worldwide Companies who had a strong interest in china. We developed eight to nine companies, combining the ones inside china and outside china. Were been able to renew a great contract with mercedes. China luxury spending in and demand is pretty high. Give us a sense of how National Tennis is becoming a force. Your lodging new vans. There is one in real. Five years ago, without tennis was fully developed in markets like we thought tennis was fully developed in markets like the u. S. , but strong emerging markets to have tennis. Since then we have created. Vents in china and malaysia recently, this year was the first year we created an event in rio de janeiro. Managed to put 60,000 people. I think we proved brazil is a great country for sporting events. Once thee a legacy world cup is finished. It proves you can really run good events in brazil, and revision are being a fantastic actor for that. Img is just merging with William Morris endeavor, huge entertainment company. Becoming entertainment. How is sporting changing . Eventsan see our tennis like entertainment platforms. For tennis fans. They become social events. They become places where you want to go and spend the day. You want to have lunch there, watch tennis, buy a tshirt, listen to some music. That is our approach to tennis. William morris endeavor brings a lot to the court. Img am a the Number One Company in sports and media and William Morris considered the Largest Company in the world of entertainment. I think sports and entertainment are more and more together every day. There are fashion shows, television programs. They have an amazing expertise on bringing celebrities and being creative, really passionate about sports. Leadership and will be great for ing. How about the most Surprising Companies that want to be affiliated with certain players and the industries you never thought would be wanting to combine with a famous sporting player of some sort . An example of a company that has been associated with the tennis player . Yes, that surprised too. That is a good question. I should reflect a little bit. In china, weve had requests from companies that you never thought. For example, theres a company who produces mattresses for beds. We thought that was very creative because eventually, tennis players need to rest, probably, and be ready for the next match. Wecompleted the deal because thought it was very rare. Social media, is that prevalent now . Extremely important. A scenario that will benefit a lot. Very strong and digital. Social media is key. You know the number of fans that follow tennis players on social media. It is our job to find a way to monetize on that for our clients and use that promote and build a brand for our clients. Wonderful speaking to, global head of img tennis. Events and players into stars theyre becoming. Much, Caroline Hyde from wimbledon. Coming up next, bmp plays the bnp pays the price. All of that coming up next after the break. Welcome back to the pulse. Bnp near a deal to plead guilty and pay as much as 9 billion to settle allegations it violated u. S. Sanctions. For more, lets bring in the managing director from europe. Several moving pieces to the settlement. A fine, access to u. S. Dollar Payment System, and the guilty plea. It is the Payment System and think people are most concerned about. What do you think the applications will be for bnp of their frozen out . I think youre right, theres still some uncertainty around that issue. We dont know exactly what it means, access to all u. S. Dollar payments or there seems also the the possibility it only affects International Payments come in and out of u. S. For international clients, in which case as opposed to impact, it would be a bit smaller for bnp. Indeed, what exactly these Restrictions Mean for the bank and how they can mitigate the effect for the next three months is not 100 clear at this stage. Does this bring the does this break the bank, the reputational damage . What does it do overall . It doesnt break the bank, as such, but it certainly hurts it quite significantly. Just look at the share price over recent months. I think the reputational and five. Franchise over the weiumterm is also uncertain thought it was going to be 10 billion. That bnp is being treated unfairly. Do you agree with that . To be honest, im not involved deeply enough in the legal but this is the second guilty plea compared to what Credit Suisse paid. It certainly seems like a large amount. At the same time, it does seem like there are substantial thatts of money involved bnp moved in violation of the u. S. Sanctions system. You would expect any bank, especially one as global an Important InternationalFinancial System for bnp to play by the rules and obey the laws and the countries they operate in. Some say under u. S. Law, you could potentially be forced to pay for violating the sanctions laws and the doubled up payments, so some in the u. S. Saying theyre getting off of it cheap. Heres a question. Why did they do this . They deliberately stripped down the codes to conceal the country of origin of these payments. How lucrative the business with iran and sudan have been . I suppose not lucrative enough to pay for the fine. Right. Fox why . Mcgill to speculate. One reason could be bnp historically has had strong ties to the whole mediterranean and arabic region. It is also possible within this Large Organization that this is down more to a number of individuals rather than it being an institutional practice. It would really be surprising if statues bnp had in the earlier saying, we will make sure we pay money to iran or whatever, other than this just being potentially an issue at level orl legal entity an issue with certain individuals within the group. Having said that, it does seem to have gone the far up into the organization. At best, leaves some question about the governance and control systems within the group. Im sure that is also part of the substantial fines their pain. Were hearing 30 people may leave at this point. Implemente bnp will new control structures. Im sure there will also be part of this deal. Lets not forget, the third component of this you will be a guilty plea in the u. S. That also leads to this large fine. A guilty plea in the u. S. , as far as im aware, can lead to a fairly dramatic consequences if theres not some give from the authorities in the u. S. We should remind everyone, Credit Suisse did also agreed to plead guilty. Thank you so much for joining us. We will be back with more in two. Welcome back to the pulse. Special effects in movies usually involves more than meets the eye, the for one artist it is entirely what meets the eye. There is a long line of artists in my family. I started drawing when i was a little kid and i picked up a pencil and a brush and started doodling. As i got older, i just kept with it. People in sa,ndom what do you do for a living . I say i paint contact lenses for film and television. They say, somebody does that . Yeah, somebody has to. It was a fluke. I was working with a Makeup Artist that would occasionally go to set up a contact lenses in, what you call a lens technician. The first time i tried it and i was hooked. It is a very small campus. Fine brushes,very a few hairs, basically. It is a process. It takes a few hours, sometimes a few days to complete depending on what the design is. Sites cover your pupil and your eye. The ones that cover the white of scleral. Re called the reason we use those is, for instance, the grinch where the whole i is yellow. Or it could be bloodshot or someone has been hit in the face and needs to look like a hemorrhage. Few giant films. Alice in wonderland and parts of the serbian and i worked with Angelina Jolie for a few of her shows including maleficent. Her Makeup Artist showed me a rock and a had all of these flecks of different colors, blues and greens and pinks. Basically, i try to incorporate all of those colors into that lens. There is competition. There are only a few of us, i handful, less than 10 i think. There are so many things i love about this job. I get to paint. Im an artist. I get the paint for a living. To see them finish their makeup and put in a contact lenses, everything dust comes together and it is the finishing touch. It is the cherry on top. That does it for the pulse. We will see you tomorrow. The secretary of state is in baghdad as jihadist control the border with syria and jordan. Can this great bull market heat up gekko the u. S. Cheers turned to tears. Good morning, this is bloomberg surveillance. We are live from new york. It is monday, june 20 third. I am tom keene with scarlet fu and adam johnson. With a very busy morning brief to get you started. Overnight, chinese manufacturing rose to a sevenmonth high. With the purchasing managers that flipped. In the u. S. , the chicago fed activity at 8 30 followed by the u. S. Pmi at 9 45. Existing home sales at 10 00. A busy week for housing overall. Atcaseshiller and new homes some point. Tomorrow, yep. Looking for better housing