Transcripts For BLOOMBERG Countdown 20140219

Hello and welcome to countdown. I am mark barton. And im anna edwards. Bloomberg report is a standing by around the world ready to deliver the stories to drive your day. Manus cranny is ready to steer latest dealings with dongfang. Covering clashes in the ukraine and Jonathan Ferro is focusing on the u. K. Ahead of the latest unemployment data and minutes from the bank of england. Givefore all that, lets you a few more reasons to stay with bloomberg this morning. We have some big interviews coming to you. We will be speaking to the ceo of the fourthlargest brewer, Joergen Rasmussen. The peugeot executive joins bloomberg, his first interview of the day. Lets look servo into lets look further into the numbers from peugeot. Theyre beating analyst estimates manus cranny joins us now with more. This is quite a bit better. The loss, 177 million euro and the market estimate was for 247 Million Euros. It looks like they have beaten on the selfmade target. Target was to reduce the cash burn by 50 . Crash,uld generate hallelujah. In the latest they said they would do that is by the end of 2016. They are in joint venturer talks. Peugeot a big part of and this is where the state got involved in with 7 billion euros. Theyre putting a joint venture together which they say could intentionally generate more cash nearly 1. 8erley billion euros. They have a new partner in dongfang and they have the capital in place. If that was not enough, we have this deal with the french government and dongfeng. It depends on how you view the stock. One says that peugeot has capitulated and they needed to do the deal. They are seeing their holding the new did so it is a triptych, my favorite word. Everything comes in the trinity for manus. The power of three, the power of three. Question losing control for the first time in 118 years. I will tell you why. There are only two other bmw. Ties, fiat and reorganization, capitulation. They are diluting the position gets access to technology or additional access to the great china market. Family fell out. No one wants a righteous you and ones rights issue and one wants to sell to dongfeng. Robert wants them to actually go ahead and sell. Narrow loss in the cash burn is less. Later this morning we will be talking to the ceo of peugeot. , breaking news from carlsberg the third biggest brewer. Net income for the fourth corridor, 1. 1 3 billion danish krona. Earnings before interest and taxes excluding was a beat. Analysts were estimating 2. 1 9 billion. Its a given a forecast for the , high singledigit organic operating Profit Growth as well. It has achieved market share growth in all three regions as well. Say the russian market share increased by about dirty. Asis points to 38. 6 points. Y basis russia is a key component of carlsberg, isnt it . I suppose they will be cheering they increased their market share there, david. It has been increasing market share even as sales in russia have been following. Its going to be interesting to see what happens to the official of the sochi olympic games. They have been having quite a lot of trouble in russia in the last year because we saw the ducknation of beer moving in russia from a food to a now public drink which sort of makes sense. What it meant is that the beer could not be sold at urban kiosks and it actually affected sales. We saw a move in russia to reduce drinking so an increase on taxes and even mr. Putin going around saying if you drink a beer that it leads to alcoholism. Did catch up with mr. Rasmussen at davos and they said they are beginning to see through the russian problems. I believe weve been through the worst. The dialogue between the businesses have improved. I still see a Bright Future with russia. It will be very interesting. O see what he has to say also whats going on in asia. The last day of last year, you saw them moving in to purchase eight brewer reason china. China is obviously a market theyre focusing on in diversification. The foundation owns about 30 of shares and has changed the articles of association so that it can become a lot more dynamic when it comes to an aching takeovers. On Something Else im sure we will be listening for later today. For more analysis on carlsberg, dont miss our interview withJoergen Rasmussen dont miss our interview with rasmussen. Ryan chilcote has more on the protests in kiev. Stable though clearly tense. Late last night, we did have talks but they yielded nothing. Truce andters want a the president said they all had to leave the square. Buttarted in the morning that is when the police effectively surrounded the square in with loudspeakers told all women and children to leave the square as they were beginning an antiterrorist operation. Oppositiond the leader, the famous boxer, calling all men to come to the square to defend it. Definitely seeing a real escalation in the types of violence. 18 people killed, seven of them police. Been thehose shot have police. The dynamic here, we have been watching this for just over three months and it has been obviously moving in ads and flows. There have been occasional flareups of violence but what we saw last night indicates the dynamic says things are getting worse and as they do, it gets more difficult to pull back. Already we had violence through the ukraine and particularly in western europe crane outside of kiev. That is what they are worried about. It looks like they are spinning out of control. Escalation in violence. There are a number of reasons weve seen the protests and one of them are protests around the handling of the economy by the government. Thats one of a number of factors here. How are we reading the latest on the economy . How was it react in . How was it to reacting . If you look at the bond market, perhaps the best way to view this as to gauge investors concern about the ukraine right now perhaps more than the Economic Situation which is simply that they owe far more than they can repay and has this occasional lifeline from russia that should keep it ok through the middle of next year. Bonds due this year now trading at the yield above 20 . Yesterday, the yields actually declined because the russians said they were going to resume the bond purchase programs. Delay for a while. After the Prime Minister resigned which was a prorussian Prime Minister. They said they were going to think about it for a little while. Everyone saw it as a sign of them trying to throw their support behind a new Prime Minister. They will resume that program. That the client in the yield lasted exactly one hour and it just shows you that investors are concerned that the political instability in the ukraine is really becoming the much larger story than the economic. Four percent yesterday, the biggest loser out of all of the stock markets. Extraordinary stuff. Concern is on the date the big concern is on the banks. They now have capital controls that have been there for a few weeks and a lot of people are concerned about their savings. Ryan, thank you. Jonathan ferro is watching the data. Sneak preview. You have the u. K. Economy on a tear. Are you feeling any richer yakima spiegel are not because real wages have been falling ever since the 2009 recession. Now the bank of england has rates out the interest and when we look at todays labor market data, more emphasis on the wages than perhaps unemployment. We look at the said bank of england minutes and how about that u. S. Data . Retail sales last week showed a fall in nonstore Retail Stores read, internet shopping. And led by avered plunge in the west. I think you are joking but sometimes you have to get too touch screen. He latest returns from peugeot and carlsberg. Stick with us on countdown. Time for todays company news. The Largest Telecom caring and france, orange, eyeing acquisitions in spain. Orange is discussing options with investment banks. They have not made a final decision and they may opt against an acquisition if the price is too high. Telefonica will be facing objections from the european and they plan bid to merge the german units at these two companies. The European Commission is set to be concerned over how the deal may harm competition. It would reduce the mobile operators from four 23. Samsung is set to release a new phone with a larger screen and sharper display than the current galaxy. It will debut around the same time as in the rated galaxy gear smart watch. They are adding features to fight against other premium smartphones and competition. Welcome back to countdown. Im anna edwards. And im mark barton. We have the earnings from peugeot and carlsberg. Lets break down the numbers with alan hagans. Beer or cars . Good morning. I like both. Lets do beer first. Not at the same time. Beat. Lsberg the dividend payout is pathetic. I think the payout is less than themnd i would like to see put Something Else on that. What is the compound mean . A company like nestle. We keep drinking beer despite the Economic Situation so if you look at the stock price performance, earningspershare has delivered over multiple years. Perhe dividend is 8 krona share and estimate was 6. 5 so they beat that. Responding to the times where investors like us want a better and improved to the den and they have the flexibility to pay that kind of dividend. Lets talk about peugeot in the investment in that business by the chinese manufacturer, dongfeng. The Chinese Government will also be issuing shares. What do you make of all of this . From a shareholder point of view, its a lot of dilution. Because the company is clearly rateded, they have been as junk and its a double be credit so they are trading a little distressed. This cash infusion is literally a transfer from equity to bondholders. If you like, it makes the bond money good. That would be my first call, to have a look at the bonds. Equity looks beaten not. It is in the family of being diluted. It still looks very speculative, very tough. , there is money to be made in this. They are talking about this in positive terms about the rate of cash burn. Ahead ofumption is target, coming down quicker than they had estimated. That is music to my ears as a longtime bond investor. My Bond Department will be burn makescause cash it safe. In terms of carlsberg throwing off dividends moving on to the french ands, Credit Agricole another doubling the dividend after reporting a big rise in profit. The big three french banks, would you have a preference or not . Hard to differentiate. Despite the litigation Market Leader. Credit agricole, they have all had a bad crisis. Euro, they could have geared up and bought the bank. They were right at the bottom. Also they sold out. There were lots of People Uprising in greece at the time, to be fair. We did not know the tough situation for greek bonds. Nevertheless, i would be more critical of the selling of italian bonds. You may remember they have an awful lot of italian bonds from their italian subsidiaries. We see the difference are those that held on and earn the income in the game and those that maybe cut back their exposure to peripheral debt so much. You need to know about next. Here we go drumroll. Stick around for that. Countdown welcome back to. Welcome back to countdown. Lets do it. Lets do the charts starting with rpi, retail Price Inflation and credit growth. Inflation surge without credit growth. But are you telling us ca . Ive been on before. We have been dovish. Mark carney has been dovish. Why . Yellow is rpi. To 1. 9. Ed down we know there is no inflation every way. Did you see sweden has negative inflation . Look at this white graph. Its very unusual. That is inc. Lending. The bank lending part. We have had this huge kiwi buying of bonds. The idea was surely it would. Mprove bank of england its quite hard to have inflation and have a very stern economy. You speak as if we want more inflation, alan. Its a bit goldilocks. It is a bit goldilocks at the moment. Rates are not going anywhere. The next chart, expectations. Responding to the strong , you can see the higher rate premium. Forward guidance has not really worked in terms of the market. We would still go against those markets. We still think they are building too much and because of the underlying bank lending. We are a cheerleader for mr. Carney, absolutely. Instead of forward guidance, we are with him. Hard squeeze them all in. Coutts co. From he will be back from our newspapers. What will this reveal about mark carneys decisionmaking . Engineers at the European Space agency have created a sound system so loud that no human could deal with exposure. Why would they build such a thing after that is next. Knees in a Bloomberg Live headlines. At least 18 killed in clashes between police and protesters in kiev. Hundreds injured in the standoff. Security forces moved into clear at the main protest camps in kiev. The Federal Reserve approving new standards for foreign banks now requiring lenders with at least 50 billion in assets to hold more capital in the u. S. A Morgan Stanley report says deutsch bank and barclays will be the hardest hit among european banks. For supporting actress Jennifer Lawrence and charlie rose talks to the director of american hustle, david o. Russell. It was amazing. It was just genius. That was massive to have these two together. Borough agents and they were while. That chemistry was electric. When we came up with the fishing story, i used to ice fish. Like you can watch the full interview tonight. It airs on Bloomberg Television at 10 00 p. M. U. K. Time later. Hello. Welcome to countdown. Time in london is 6 31 a. M. We expect unemployment figures and bank of england minutes both out later. Both carrying forward on the discussion of the second phase of forward guidance. Market datahe labor is very important. Real wages in the u. K. Have been following in there has been no adjustment for inflation. Cracks we get wage numbers with the inflation. That is something to look at. Will those things two meet . Youd expect to see depressed wages on the back of it. This shows Spare Capacity as well. There are less people working in fulltime jobs. Muska today labor market today. Less of an emphasis but i think of wage growth is important. Wages are going in the right direction. Veryey are converging slowly. They are still negative. Lots of ground to make up. Carney and janet yellen have spoken, heads of the u. K. And u. S. Central banks. Do the minutes mean more or less . Im interested in the dynamics behind the decision particularly at the Federal Reserve. You get an idea from that from the Federal Reserve minutes. You also get the discussion on guidance and how it will ship about the Federal Reserve. Will open cool kids up this pdf when it comes out this evening. Times thee how many words emerging markets comes up. South africa and turkey would like the fed to be a little bit more accountable. It is about whether it feeds back into the domestic economy. That takes time. Right now, they dont think it post a significant risk. Three times in the december minutes emerging markets were mentioned. Lets make a guess. I will not make a call. I restricted to time. I will use it to talk about the data. The data has been really, really bad. I want to know whether they think it is an outlier. There is some suggestion that it might just not be the weather. Andas led by the kinds eight signage and confidence in the west. Theres a drought in the last. Cracks its not just the weather. We also saw a fall in what they would call internet shopping. It could be an outlier but its asking the question if its anything more. Theonathan ferro is one of cool kids that opens the pdf and put in emerging markets. I will let the analysts do that. I dont think its that cool. Thank you very much. Shares bouncing back for the israeli maker of the soda stream may have archenemy coca cola to thank. Elliott gotkine has more. Hoping toapparently scare away soda stream shortsellers . Its not often they have a reason to be grateful. It is more often seen taking swipes at coke and pepsi for that matter, most notably in a super bowl ad. On this occasion, things might be different. Ever since coca cola bought a 10 stake in Green Mountain which has its own home platform, soda stream platforms have begun to rise off of the lows from the year. At the same time the shares have risen, thats that they would be fouling, short bats, have been declining. It represented about a third of stock and it has declined to about a fifth. Many Analysts Investors and investors see coca colas position in Green Mountain as a validation of the do it yourself drink market and other investors thinking maybe adding them together. If coca cola is buying stake it follows logic that pepsi would be interested in soda stream. Upguarantee but we say it is since earlier this year but theyre certainly up from the lows this month. No guarantee that pepsi or anyone else has bought into soda stream . Arounde were some rumors post in the israeli media as well that they were adjusted in buying soda stream. Those were vigorously denied. They have said that they are looking at the inhome carbonated drinks market as another Distribution Channel and they are trying to decide who might be best for that. Of course, pepsi might decide to go with another plan. To doave plenty of ways that. Certainly, we know soda stream has lost more than half of its value since june of last year when they reached the high. They might not be looking at whats going on with coke and Green Mountain but soda stream is going at a lower price multiple and maybe theyre looking at soda stream as a value play. From the, elliott, middle east. They have created a sound system so loud that no human could withstand the sound. It is stimulating the sound of a rocket launch. Sam grobart takes a look at the competition. This might get loud. European space agency has created something extraordinary, a large european acoustic leaf, which is one of the worlds loudest boomboxes. The agency says it can create a sound so powerful that it could kill you. Four massive nitrogen gas powered air horns in a chamber reaching volumes up to 100 54 decibels, about 100 times louder than a jet plane taking off. They use leaf to test if it can withstand the sound of a rocket launch. They are toning down the acoustic assault by spraying hundreds of thousands of gallons of water over the launchpad. Leaf may be loud but european rocket scientists do have some, titian. Some competition. There is a decibel drag racing in which they want to create the loudest car stereo. Volumes can reach 180 decibels making rocket launchers sound downright polite. Decibels, which apparently can kill you. The loudest ever rock concert in hanover in 1984 were you there . 129 decibels. Can you imagine going to a rock concert that loud . I was here presenting the show. Thats been a long time. When he goes skiing, he makes sure the accommodation is as impressive as his slopes. We go inside his ski chalet next. Time for todays company news. Fourthquarter profits from a record loss in the bank was robbed by a tax rebate and earnings from french consumer banking. Income came in less than analyst estimates at 12 Million Euros. More positive trends in the fourth quarter. They reported earnings that beat analysts estimates. It was helped by the sale of assets in honduras contributing 172 million euro. The italian owner of the jeans maker diesel has denied the rollout after reports that Roberto Cavalli have been holding out. Could bes cavalli interesting. We want to position our work group as an alternative to luxury. We will go after brands and companies to position themselves in a more contemporary and premium segment compared to the top luxury or basic casual wear. Welcome back to countdown. Its 644 a. M. In london. Ever wonder where a brilliant where a billionaire stays when he goes skiing . If you can afford it, it is fantastic. Hans nichols reports on Richard Bransons ski chalet in switzerland. To asis simply referred the lodge, Richard Bransons personal holiday home in a swiss alps. Its. It is open to rent. With room for 18 guests, its more like a luxury hotel down a hideaway in the mountains. A staff of 15, 4 chefs, a spa therapist, and a 24hour Driver Service and more personal touches. Downstairs is set up for the ultimate, a fully stocked bar and even a dance floor with a disco ball. The pool is not far. It does lead to a pool party, we will make sure that no one strays too far. With bunks for the kids, it hosts corporate getaways, family reunions, and the branson clan. We are going into richards suite. Ceilings are low but there is a remotecontrolled fireplace. Given that its his room, there has to be a surprise. A secretase, its passageway behind the bookshelf. We open it up and it leads to the neighboring suite or you can have some peace and quiet and maybe get some work done. Rooms are available to rent individually but a few of the whole place to yourself you will need a ceo salary. Christmas week will set you back it is popularso with corporate groups to impress clients and let loose with one important decree. What goes on up a large stays on the lodge. The Mountain Lodge that is not as pure as the virgin snow outside. Fascinating. Hans nichols is back from berlin. The thing about secret passageways is that they are only as good as the secret and you just reminded. [laughter] right. Are whatever he was supposed to do and that of the room is completely ruined. His wife knows about it. S, maybes for guest they can sneak away. It was hinted that a lot of misbehaving happens at the large. I will make sure that you guys are stricken from the list. Mark tends to get up to shenanigans. After a long day of skiing he still has energy to keep going. Were you wearing a red smoking jacket for that assignment . One puts on a smoking jacket you dont bring the smoke smell back into the family room. Towill show you tomorrow how survive an avalanche or maybe that is on friday. This is a whole series we have on skiing and me also got a look. She was having a little more for 29 million and the owner says its a steal. Red smoking jacket was slightly at odds with the glitzy pool. I guess you need to make full use of that. We will let you off on that. More from hans on the luxury life in switzerland. Discussing more of Champions League clash after the break. Newspapers coming up. Welcome back. Im anna edwards. Were just an hour away from the start of the European Equity trade. Lets have a look at the newspapers. Insn chilcote and alan higg from coutts with us. Carrying on the skiing theme. Vanessa mae the look of that technique. Technique, i mean. The newspapers are way too tough. Cannot turn as i well. Reprentg thailand, she came in last. Quick she only started properly years ago. Few could she got the minimum really canons so she do it. Looking at this photograph, im just so impressed by how shes on the edges. Alan is enamored. Shes an amazing violinist. Crossmakes for good training. She says it makes her a better violinist. Struggleou and i would. Ryan, lets pick up on the olympics. Themerican david wise takes gold in the freestyle skiing half pipe competition kicking it spinith a 720 double beating out a canadian and a frenchman. He did it in front of his twoyearold daughter. Hes a real champion. Are. He guys on the podium they said it was really difficult to gain speed with all of that. Skis tangling in midair it must be very difficult. Germany, norway, the netherlands ahead. The netherlands have two more silvers down on us. We need to play catchup quickly. Ukraine . E 18th place. Thats ok. The last 16 of the champions , it was all pretty even stevens before this mans truck. Debate is was the touch outside the area . Should he have been granted a penalty . Consequently, this man scored and they scored another they have to go to barcelona scoring at least two. Doable or not . 30 to 1. What is your personal interest in this story . I love football. You love manchester united. Its Champions League. Its underway again. Thats a very big of you. The story will resonate with a few people watching in a few people around this desk. How to tell us a tweet is telling the truth. They are joining forces to try and create the ultimate lie detector for the digital age. Theyre going to try to work out a system of telling completely and utterly made up tweets as opposed to things you should give credibility to. It will judge truth or fiction im not familiar with the greek mythological figure of gossip and rumor yard gophem . Rumor . Phem . There is a verb to lose. Thats my greek. That does not help. Intoeason theyre looking this is back in 2011, police time was wasted, panic, street was created by people making up ridiculous rumors and putting them on twitter. I remember about how the animals of the london zoo where being escaped, the london eye was on fire, and none of it turned out to be true at least to the best of my knowledge. There is a serious side to that story and that is why they are teaming up to try and create the ultimate lie detector. Tweets from ryanchilcote are true. How about you, mark . [laughter] hes yet to join. They did not have twitter. ryanchilcote. Lies. Utts, full of [laughter] continues next in my life pictures from the ukrainian protest. Up to 18 left at. Left dead. The center of kiev on fire as police armed with stun grenades battle antigovernment protesters. At least 18 people dead and hundreds wounded. Bringing in chinese carmaker dongfang and the french government as investors as part of a 7 billion rescue plan. Operating losses come in lower than estimated. Brewing further east, profit beast estimates as the Company Expands market share. Welcome to countdown i am mark barton. I am anna edwards. This morning on bloomberg. We have some big interviews coming up on the program. Carlsberg profits beat estimates. We talk toe pulse the ceo of the worlds fourth biggest brewer. Later we speak to the head of europes secondbiggest carmaker. Peugeots chief executive joins bloomberg for his first interview of the day. Overnight clashes in ukraine left at least 18 dead in the Bloodiest Day of violence since antigovernment protests began three months ago. Investmented by capital ukraines head of research. He joins us live from kiev. Thank you for joining us this morning. Heading toward civil war as many commentators have said this morning . Hello. Fact, there is a great [indiscernible] authoritiesinst the which are thought to be hugely. Orrupt, selfinterested say it is about the nation rebelling against the corrupt government. What happens next . There have been up to 18 deaths reported. What is next in this episode and what is turning into the bloodiest part of the threemonth protest . Today proved that the sides are still far apart from each other. They are not at the negotiation table today or in the next few days. Expect the situation will be rather tense. There is going to be great pressure from the west to seek the negotiation table. Ryan chilcote here, russia has offered this 15 billion lifeline. They have given some of the money through their bond purchasing program. Yields still obviously very high. The west has yet to offer any money despite the fact that ukraine cant pay back the imf and all these other debts without russian help. Where does it go from here . Ukraines economy is in a very dire situation. Move toly there is some find bailout money. Russia is providing money, but mind you the macroeconomic conditions are not about incoming money in the form of big loans. ,t is about macroeconomics urgent reform. Would be under the oversight of the imf. Dire markethis situation, without any macroeconomic reforms, even kremlins money does not provide a solution for the ukrainian economy. Alexander guess . We have just 10 seconds. You mentioned the imf. Ukraine is asking the imf to look at the deal again. Do you see any money coming from the imf for the west . I guess we will have to leave it there. We might have lost him. Ryan, you are staying with us. Look at pictures from the center of the capital there. Interesting view from alexander saying what is most needed isnt money from russia. Plan put inreform place under the imf. Also, characterizing the situation, his view is that this is not spinning toward civil war. This is a broadbased uprising against a corrupt government. What we are seeing on the bond market tells us that in fact it is not the Financial Issues right now, the macroeconomic issues that are most important. It is the political instability. These abstract conversations about reform can be settled we need to get a government. On january 28, the then Prime Minister resigned as a concession. The opposition, one of their leaders was a parliamentary speaker. He declined to take the post. What we need is some kind of compromise. Will the pmb named this week . Will it be russian compliant . The speaker of Parliament Earlier this week said to a local newspaper that the president will name his Prime Minister designate and that would have to be supported in the parliament. There is a lot of speculation that russia gave this most recent 2 billion on ukrainian bonds this week because they know who that canada it is. They are confident that the candidate will be prorussian and they want to prop him up. We had this massive show of violence over the last 18 hours. It will be interesting to see if we do indeed see that Prime Minister candidate. Equities are plunging. Capital control is in place not just in cyprus but now in ukraine as well. The bankableing to their money out is a big concern. That will not help. Forosses narrowed in 2013 peugeot, beating analyst estimates. Manus cranny has been looking at the story and he joins us now. Lets get the numbers out of the way. I am not sure where the market is going to focus. I have an idea that that is where we are going to go. Not burning through as much cash, that is good news. Way ahead on that target. The third component is to say look, we are going to generate cash by 2016. Businessthe financing which was backed by the government to the tune of 7 billion euros to join a venture talk to create a 5050 vehicle. They say that is going to produce cash by 2018. Those are the nuts and bolts. We are getting some commentary from muscovy see moscovici this morning. They say they are a longterm investor. They say that dongfeng and the government are all in on a 3 billion capital raising. In for the same amount of the company, 14 . They are all in, they all stand shoulder to soldier. Shoulder to shoulder. What is important is that this deal is butchering bolstering capital. No factory closures at the moment. That is what i understand from these breaking headlines in france. Moscovici saying there will be no closures in france. The government will have two voices on the board. The board will be made up of 14 members. Two of them will be from the government. What do wemily do . This is the government. They are really in some ways supporting, able to take up little bit of a step back and say, bring another investor in, bring the technology, bring the access to new markets. Bring a new voice of strength on the board and you can look at how you go forward. You mentioned the family. They are decreasing their influence on this business. They have been in this business for 118 years. It is a big day for the peugeot family. For the winners and losers here . Just because dongfeng have jumped into bed with peugeot, do not take it as a symbol one plus one equals two in terms of the technology transfers. There is a lot to go through. Sell 1. 5 Million Units by 2020. There are only two other car family dynasties that have remained at the table post restructuring. Fiat and bmw. A really prophetic day in terms of dynasties in europe. Thank you very much. We had earnings from carlsberg as well today. Profit beats estimates, the Company Gaining Market Share in russia. Lets bring in david tweed from berlin with more. Russia is a key market for them and they did gain market share but the problem was they gained market share in a market which is declining. They estimated that market declined about eight or send during the period. If you look at their market share, russia represents just that ister Eastern Europe and russia is the main part. It has been a difficult market for them for a couple of reasons. There was a redesignation of beer and russia. No longer is it counted as a food. It is counted as an alcoholic beverage. That makes sense but it did have an impact on their sales. A lot of their beer was sold through urban kiosks which now can no longer sell the beer. They are trying to encourage their people to drink less. We did catch up with the chief executive officer who talked about the outlook. Listen to what he said. I believe we have been through the worst in terms of regulation. The dialogue between the government and businesses has improved. It still needs to improve further because we need more liquidity. I still see out there a Bright Future for the beer market in russia. We will be speaking to him a bit later in the pulse. We will get more of an update on what is happening in russia. Also what is happening in asia. Asia is the next focus. At the end of last year, they signed a deal to buy eight new breweries in china. One other area to look at. Overall, not doing too badly. 3. 30 2s came in at billion. That was just about the analyst expectations. Thanks, david. Dont miss our interview with the carlsberg ceo Joergen Rasmussen on the pulse a little later. Countdown will be focused on the u. K. As unemployment data comes out as well is minutes from the bank of england. We will give you a preview of what to expect. Time for todays company news. Biggest wireless carrier is said to be eyeing acquisitions in spain. Sible targets include orange is discussing options with investment banks. It hasnt made a final decision and may opt against an acquisition if the price is too hi. Objections from the European Union over a bid for royal cape en. Kpn. Yal the European Commission is concerned over how the deal may harm competition. The deal would reduce germanys mobile operators from four to three. Samsung is said to release the new phone with a larger screen and sharper display. Debut around the same time as an upgraded galaxy gear smart watch. Samsung is adding the features to fight stalling demand for premium smartphones and competition from apple. Welcome back to countdown. s secondlargest carmaker reported earnings this morning. Peugeot agreed to bring in dongfeng and the french government as investors. From get more on peugeot andrew jackson. He heads up analytics. Tank you very much for coming in to talk to us. Are so many bits of the story to digest. What is most interesting to you . Is it the performance of the business, the fact that they are burning through cash at a slower rate or getting a handle on the cash situation quicker than they estimated . The structural issues surrounding ownership of the business. Some of the ownership issues it is going to be interesting to see how that agreement works out. Estimation, we can expect a certain amount of the frenchetween wanting to protect jobs and the chinese wanting to extract as Much Technology information as possible. Behind all this, we have to remember that peugeot is desperately trying to get on top of its cash issues and return to growth. The risk that it will will be paralyzed by model direction from the parties . There is french government pressure. So as far as that is concerned, it is one of those situations where that is an example of how you could see that peugeot becomes a political pawn to ensure the government can maintain. How significant is it that they are bringing in the coo at renauklt . How significant will he be heading up peugeot . I think it is going to be interesting to see how he does. Certainly if you look at the Growth Markets which peugeot are interested in increasing, china, latin america and russia, when you look at how renault performed in latin america, they are doing better than peugeot. As far as china is concerned, that has been one of their key battlegrounds. They are enjoying some very significant growth. All of this is from a low base of business. Thank you. Andrew jackson stays with us. We are going to take a short break here on countdown. Stay with us. Welcome back. I am anna edwards. I am mark breton. Andrew jackson is here, head of analytics. What about the cars, andrew . We have the 205 back in the 1980s. That was one eminent car. Where is the new car of the decade . What happened to their innovation when it came to producing models that everyone wanted . You ask a very good question. The 205 was an icon. Unfortunately, since then it seems to have been a gradual decline for peugeot into the banal. At the moment what they are injectto do is try to some vigor back into the brand. Seems to be working. New engines . Are they the secret . Is that going to be a significant boost . It is certainly going to help. It is part of trying to capture sales. You need to make sure the vehicles are efficient. Fleet operators will want to purchase large numbers of them and the buyer will be able to save a little bit of petrol at the pump. Read much into january figures you were saying, which showed him in crease of 6. 9 . You look back to those heights of before the financial crisis. The comparisons are still quite startling. Absolutely correct. At the moment sales are up for psa and we only hope that we see that going forward. When you compare where they are at the moment, they sold approximately 1. 3 million cars but when you compare that to 2007, it was 2. 3 million. There are huge losses there. The Capacity Utilization of their plants is still below where it needs to be. Sector, do we still have the situation of overcapacity . We had closures of plants or talk of closures of plants by peugeot, ford, gm, fiat. It is certainly a lot of talk. A lot of conjecture. In terms of plants shutting, we know what is happening with opal. We think we know what is happening with peugeot as well. It is going to be even harder now for manufacturers to step away from their plants. We are starting to see hopefully the european car market stabilizing. Is that the theme for this year . Revival phase for the european auto market . I would certainly hope so. We have seen declines for so many years. Is awe hope to see flattening out of the losses in terms of production and sales and a gradual pickup towards the end of the year. Are we going to see dongfeng cars in the streets of europe . Arehinese manufacturers already starting to appear in certain countries in europe. Thank you very much, andrew jackson. Coming up, the Company Making your money mobile. We talked to the ceo of monetize, the man making it easy for you to bank and spend money from your mobile phone. These are live pictures from the protests in ukraine. Clashes between police and protesters have killed 25 people according to the associated press. Hundreds have been injured in the bloodiest episode of the countrys threemonth standoff. Last night Security Forces moved in to clear out the main protest camp in kiev. The Federal Reserve approved new standards for foreign banks. It now requires lenders with at least 50 billion in assets to hold more capital in the u. S. A Morgan Stanley report says Deutsche Bank and barclays will be hit hardest among the european banks. Hustle, a success including the best supporting actress award for Jennifer Lawrence, charlie rose talk to the films david victor director. The film was nominated for 10 nme awards. The most intense moment in your marriage. That is high stuff. Every character, you want to have a big scene. I want the actors to do it all. I want to see them do things. That is what i love about watching a movie. It in aask is to do believable way, a real way that is grounded. That is the thrill for all of us. He will never settle unless he believes that it is actually happening. You have to believe. That interview on charlie rose tonight airs on bloomberg tv at 10 00 p. M. U. K. Time. Welcome to countdown. I am mark barton. I am anna edwards. Monitise is taking your money mobile. The Company Provides a service that allows you to bank and shop from your mobile phone. Clients include rbs and visa. Joining us to discuss the business and the earnings is the monetized monitise ceo. Thank you very much for coming to talk to us. Give us an overview of where you sit in this space. Environment for those looking at it, a fastmoving environment. Part of the mobile ecosystem that lots of Companies Want to be a part of. Where are you . You are right, it is complex and it is global. More than ever it is predicted to be very big as a market. If you think of it, 7 billion mobile phones on the planet, only 2. 5 billion bank accounts. You think of people who have got a mobile phone but not a bank account, that is an opportunity to grow our services. Lots of people come into the space. We started quite a long time ago. We continue to play the same role. We are white labeled, not a consumer brand, not trying to steal anyones lunch. One of the golden rules of payments is that it has to be if you get off a plane in japan and use your atm card from lloyds bank, you use the same pin. It happens because below the surface, everything is interconnected. Banks, mobileing operators and other players in the ecosystem to make that happen. Does it make sense to be in all the spaces, to provide your product to retailers, banks, telecoms . These are very diverse businesses. They are. If you think of it like the traveler plug, wherever you go in the world you can get access to energy. That is the same thing. Mobile operators have different systems to banks. The one thing that is common is your consumer has a mobile phone. They want to be able to bank, pay their bills, pay their friends. How quickly are you developing this ecosystem . Challenges,e although we have enjoyed being a Public Company enormous they, one of the challenges is that we went public very young. We had 400 thousand dollars revenue as our first year as a Public Company. You dont see the iceberg come out until consumer start to use it. We will be working on project today in various parts of the world that in a few years would lead to millions of consumers accessing their bank through their mobile phone. It is complicated but we have got 1000 people in monitise. Day, our team wakes up and says, how can we enable that bank to talk to that mobile operator . Where is Technology Heading when it comes to mobile banking . It depends on the part of the world. We have services in india where it is first generation. ,ou have the most basic phone right through to the smartphone apps where people are shopping, buying goods. People useoday, their phones rather than cards to go into a coffee shop. It depends on the market. We are agnostic, that is the really important thing. Is it going . We are seeing new security elements, things like biometrics, voice recognition. We have Fingerprint Technology on phones coming, that kind of thing. What are you most excited about . Developed economies or emerging markets . What is the big growth driver for you . Great question. We have two great strands as a company. There is a horizontal, more banks, more people coming onto the platform. We Just Announced 28 million users today. Every month, nearly one Million People come onto our platform. They dont know it is monitise nkcause it is their ba bringing them on board. Two years ago, they were just checking their balance. They can now send money to family and friends, people across europe. Soon they will be able to do other things. Your growing vertically and horizontally. The mess tricks metrics look compelling. You are on track for revenue growth. You are still lossmaking. When will you make a profit . It is a fair question. Certainly not when we try to avoid. There have been times in our history where we have been profitable. We have a clear line of sight as to how to get profitable again. If you look at our shareholder base, the people that have supported our journey, they see the size of the prize. Y see that we have managed it is quite rare for u. K. Company to be a Market Leader in any tech space. The space is really, you think of it like a clock. We are one second past midnight. We have to keep investing. It is just not the type of business we are at this stage. What messages will you be giving to the u. K. Government . That adds a different dimension to your day . A bit. It is not a particularly onerous deal. I am hugely flattered. Asked to dong anything i wasnt doing already. It is really just banging the drum for british business. When i am on trips in different parts of the world, if there is sorry to do my plug but i have to say, for years we would say do more for business. At last, the government is doing more for business. Can the government do more for Technology Companies like yourself . We have been given a lot of support. We are seeing a genuine sincerity in this sme thing. [indiscernible] now entrepreneurialism is the talk of the town. Everyone gets that. What i like is putting the m back in sme. Is one examplee of a company thank you very much for joining us. Ever wanted to know what the view might be like from a supersonic jet . Stick around. An adrenaline filled hot shots. It is time for hot shots, a look at the most compelling images of the day. Iraq is stepping up efforts to get more women involved in a sport that tests strength. Weightlifting. The youngest participant of the region championship is only 12 years old. She weighs 66 pounds or 30 kilograms and was able to lift nearly doubled her weight. Just like everybody else, he needs an id card. Pope francis renewed his documents recently. He went through the same process as any other argentinian. Unlike the smiling pope francis b usually see, he puts on a serious expression for this photo up. Check out the view from singapores black night. Putting on a display for spectators at the Singapore Air show. Anyone within a few miles of the event. The ministry of defense says the planes are a source of great pride for the country. Me. Is it for all yours. Fascinating. The u. K. Data with unemployment figures and bank of england minutes released data today. Both will Carry Forward the discussion on the forward guidance. Jonathan ferro joins us now with more. What is the headline . The 7 threshold is in the trash. At least it feels that way. That would be unemployment . It could climb higher today. A couple analysts think it might go to 7. 2 . The consensus is that it remains at 7. 1 . What i am interested in is the wage growth, the lack of wage growth we have seen from 2009. We just havent had any wage growth at all. We have the bank of england talking about falling working hours, less people in the workforce working fulltime. Is theowth for me standout figure and not the unemployment rate. We are going to get those numbers as well. We also get bank of england minutes. Questions out there i guess about, what do we learn that is new from the minutes . Happened some time ago and since that meeting we have heard from mark carney. We have also heard from janet yellen. I dont think it is completely redundant. I am always interested in the dynamics of the central bank. The fed minutes are going to give you a real insight into that. Emerging markets, im sure they spoke about that. Three times last time . That was my count. They are likely to have done that in the minutes as well. The other interesting thing is the data that we have seen. We had a whole line of fomc officials say, it is an outlier. Be high does the bar need to for them to take account for this . A couple of things i have been looking at, there is a big buzz about this, it is not just the weather. The u. S. Retail sales, we saw Internet Sales down. That is people sitting at Home Shopping on the computer. Less people doing that. Is that really the cold . If you look at the confidence data as well, big declines across all regions. The biggest plunge was in the west. I am not qualified to say that it is not the weather but i am here to ask the question, is it just the weather . Is it Something Else . Recovery on what is the Federal Reserve think about it . U. S. Data missing estimates by the most in three months. John, give me a number. How many times im going to say four. How many times in the fed minutes will they mention the words emerging markets . I will say four. It could give couplet hit it. What are we talking about here . Four is a good number. What happens if they talk about china, brazil, turkey . It has to be those words, emerging markets. Coming up, will this mornings earnings beat from carlsberg and the dongfeng rescue plan. We will look at both companies Later Companies numbers. Welcome back to countdown i am mark barton. I am anna edwards. I will markets react to this mornings news from peugeot and carlsberg . Lets look ahead to the start of trading. Lets bring our viewers uptodate with something we are hearing from the ae. They say the terms of the agreement with saudi arabia is broadly consistent with the prior Trading Outlook that they have agreed a price escalation on the typhoon. You were making a point in the great in the break. I think it is very significant. Riyadh, bae systems had 3500 people committed to the region. It is not just value. They may well be suffering with what is happening in the Defense Budget of the United States and other parts of europe. They also had a setback in india. January, anyin delay in the saudi Pricing Agreement would clip earnings. I would expect shares to perk up. Reporting numbers tomorrow. Lets go elsewhere. Good timing for peugeot. What do you make of it all . Is it a good deal for everyone . I think it is a good deal for peugeot. Also, dongfeng gets the expertise that peugeot has. Peugeot is a very highclass carmaker. It is swamped with so much competition. 2008, peugeot share price was 45 euros. It got down to 4. 5 euros. It got up to i think on christmas and rallied from nine to 12. 5. Fore shares are being split 1. 1 billion. That gives each company a massive commitment. There are synergies or savings of about 400 Million Euros a year. As long as the design goes through and the market demand doesnt drop off, i see this as positive. Otherwise, i dont think peugeot has anywhere to go. Seems the joint ventures are the same. We have seen what has happened in japan with renault. They do have something to prove, dont they . They were teamed up with gm for a while. That didnt deliver the synergy they wanted. I think the culture is a bit different. There has to be a will. General motors has done pretty well on its own out there. I think this shows very positive signs. Carlsberg airings earnings beat estimates. The russian market is shrinking at the same time and it is pushing into asia. In thelume rose by 10 fourth quarter. What do we make of this . I think the outlook is much more important. You have to hope that there is some kind of recovery and emerging markets. We had a bad setback with tapering of quantitative easing. We seem to have got back a lot of those losses which is good. Providing we dont see quantitative easing doing any damage, then lets hope the demand building up the kind of offtake and consumption that we need, that will see the areas. I think it is crazy to rely on them. We have got other items on the agenda today. In the u. K. , we get unemployment numbers. We get the bank of england minutes. The key thing is wages. It is all very well saying unemployment is coming down, but too many people are on temporary work. Inflationis 0. 7 wage which is rubbish. The rich are getting richer, the poor are getting poorer. This is in broadcast on behalf of the labour party. It is socially completely unacceptable. There are signs that there are margins increasing in certain areas which means there is a possibility of wage growth. We dont want to see higher Interest Rates but we need to see people having more disposable income. Retail is the key to the kingdom. More Retail Companies could come to the market in the near to medium term. Ipos left right and center. This is encouraging. We do need positive sentiment. We need to be clear on that. It is really exciting. If the Major Companies get blocked because they are fully valued, this is the danger when Companies Say when you see a ,lew of Companies Like this when you see them come to the market, people are much more savvy than they were two years ago. Am i being left to pick up the trash . Especially if some of these are returning to the market. You just hope they havent been juiced out. I am not going to be too cynical but you need to be clear on this. This pound loan thing looks very exciting to me. From tesco, they have other people from other walks of life. Our colleague in tel aviv was joking about the price for the pound. Come on, you can do better than that. On the move is next. Guess who is presenting it today. That would be made. Me. Welcome to on the move. I am anna edwards in for francine lacqua. We are Just Moments Away from the start of european trading and our markets Team Everything covered from companies to currencies. Here with us now, ryan chilcote, Jonathan Ferro and manus cranny. David tweed is also standing by. We have just had breaking news from bae. We mentioned it on the previous show. Bae says that the u. K. And saudi arabia have agreed on the price escalation on the typhoon jet. This is something that has been uncertain in the market for a while. Bae is saying that it is broadly consistent with the prior Trading Outlook and the company is set to report earnings tomorrow. Lets get back to our team. Ryan is here watching development in ukraine. The situation now stable if tense. Time yesterday, at least 25 people have been killed. At least 350 injured. The clashes continued. Is this an uprising . Is it the country slipping into civil war . Police have launched another assault about four hours ago. We will keep our eyes on it. Manus, youre watching peugeot. Stock is up. They have new investors, dongfeng. Capital is king and assets to change. You have the peugeot family, dongfeng and the french government all in. 800 Million Euros. They will produce