Welcome to countdown. I am mark barton. I am anna edwards. Welcome to the program. Bloomberg reporters are standing by across the world ready to deliver the stories that will drive a yard day. Hans nichols it in berlin. Expand theireu sanctions. Ryan chilcote has a data store. Earnings from samsung. Breaking the news from the Biggest Energy supplier. Last talk about the numbers. 15. 8 billion. Battles against an estimate. A comfortable beat. And that was against an estimate. Course, the fascinating story to talk about at the moment is a business that operates in 41 countries. Everybody including us want to talk about the relationship with russia. They have a cooperation which isth headed by the ceo. He has appeared on the sanctions list has published by western nations in the last 20 four hours or so. The company itself is not on the sanctions the less. We will talk to the ceo of statoil. Thats how we are learning about thes sanctions and what it means for his relationship. Nd his relation with rosneft and whether he see the climate benefiting hit business. It is the second largest exporter. Whether there are the geopolitical playing cow and what it means. We will be speaking to helge in a few moments time. 6 02. We have had earnings from deutsche bank. Banker byt investment ravenel. Firstquarter profits up by 30 four percent. Trading revenue declines. Honda nicole it in berlin with a details. Hans nichols is in berlin with the details. Beat. Was a the big question on the earnings we were going to learn what the time for them to switch to plan b . Plan a was no more massive capital. The answer is somewhat mixed. We have revenues down 34 on the previous year. It estimates a beat and if you look at debt trading, a crucial metric for the health of what is happening, you see other banks and get clobbered in this area. You see a clear beat. Let me give you the numbers. Last year, it was two point 7 billion. That admitted it was 2. 1 billion. Mark and anna, it is about a 300 million beat. It is not all bad. The overall numbers are down. We will learn more of the Conference Call whether or not there will be a share cell of 5 billion. Of 5 billion. That is really the question. Do they find the need to get more capital . Would you look at here one ratio, tier one ration. At first it was 9. 7. A slightly decreased. Last year, round 6 . It is a healthier bank. The quarter was not as disastrous as many had feared. Thank you. They said they raise 10 billion euros. Inwe will continue to watch that story. The u. S. And eu have announced a new round of sanctions against russia. The eu have listed another six individuals. Have targeted seven individuals. One of the most influential ceo. Ts if the Ryan Chilcote joins us with the details. You have to save a very colorful character. A big personality. I saw him last year. Interesting biography. Back in the cold war days, he served alongside fighters and places like mozambique and angola. In the 1990s, he was and the saint peter bergs mayor office looking for deputy mayor, vladimir putin. Putin brought him to to the 2000. N in as any sechin was called and then sechin was called to darth vader. He is part of the Security Service like a faction if you like inside of the kremlin. He said the deputy chief of staff. Many said he was well above his weight. Then president putin became Prime Minister and he became deputy Prime Minister. E was chairman since 2004 then the government decide it is not a good to have a government officials also be the chairman of companies. He simply, when president putin came back to the presidency, he returned as the ceo. I should not say sellable. Rosneft is the largest commercially traded oil producer. He has 20 billion stake. How tricky does a making . An uncomfortable position. Sanctionednot been as an entity. The ceo has. We have seen this before. Think about it, bob dudley, he has got a seat on the board at rosneft, those aBoard Meetings are supposed overseas. What does he do . At a u. S. Citizen, can he go . Bp came out with a statement saying they are committed to their successful, longterm plans and russia. They are reviewing the sanctions. Some are saying a nonresponse. Interesting to see what they will say today in a Conference Call. They are not the only ones who have to look at it. You have to look at statoil. Sco cut the deal. And the ceo cut the deal. They put off the project until next year. After two weeks ago, telling us the project was Going Forward and they woodrow three well. For a company like statoil that offshore exploration, the arctic is a huge opportunity. If they want to that, theres a lot more than that. Russians have access. Companyis an important for them to deal with. They have to look at this very carefully. What does it mean . As a longterm project. This is a problem that would not go away tomorrow. But evaluating that relationship. Out profits that beat out estimates. Mia has the details. Good morning. Stocks are trading down and the korean kospi session. Smartphones from samsung are being sold. Fact it is that first quarter. Net income it didnt beat analyst estimates. 11 , if you compare the same ame period last year, that net income raising. Sales rising to 50 billion u. S. Dollars. At 31 . 3es coming in billion. Operating profit close to six point 2 billion. Firstquarter operating units which is responsible for more than 60 of the companys profit is what we are focusing on. A couple of things at play here on samsung is really focused making sure that they get their product, the galaxy product out across the world and making sure Everybody Knows what these products are. Samsungs lifeblood is a mobile. How much allocate for that division . Time talking about this because it is interesting. If you compare them to dells and cocacolas, that i spend all of those companies. They have won the largest Marketing Budget in the world. A marketingen on spree. They have one of the largest Marketing Budgets in the world. They spent close to 14 billion last year on advertisers and marketing courting to borders. According to reuters. About 11 billion dollars u. S. Dollars. They have outspend competitors. 45 billion in global advertising. That was up from last year. Last year close to 4 billion. About 12 less than 2012. According to the large smart to the largest smart phone maker, they are reviewing their advertisements. Apple, if you want to get a sense, they spend 1 billion. Making less money for the quarter compared to apple, but you can see they are spending a lot more. Thank you. Coming up, we will speak to helge. That is next on countdown. It is tuesday morning. Time for company news. Nokia may sell jory. Sell jewelry. The company has reported net income after taking a nearly 100 million loss in the same court. Siemens will counter a bid against ge. They are bidding for the assets. They want access to information that ge has. They will have a Board Meeting. Profits that Beat Estimates. Ormance and Power Systems hurt earnings. Welcome to countdown. I am anna edwards. I am mark barton. Earningsl reported that Beat Estimates. , joins uselge lund from the headquarters in oslo. Thank you for speaking with us. You are in 41 countries. Many people will be wondering about the state of your and howt with rosneft difficult you are finding it to do business in russia these days. Can you update us on your relationship with rosneft . Producing roughly [indiscernible] 30 of that. Withg term cooperation rosneft. Significanceg this of the u. S. Sanctions to our operations. At this stage, with cannot comment on how it will impact our activities. Well continue to comply with International Sanctions which we expect from the eu. I know you said you cannot comment on what impact it will have all the business. You must know how much work involved to make it a relationship with rosneft. Has anything you have read and the sanctions lead you to believe you have to suspend your relationship . At this stage, i cannot. Omment further than what i did the significance of the sanctions. I will come back at a later date. Are you traveling to russia . Will you be attending the International Economic forum . If that still important to your business is that still important to your business . At the moment, we are investigating the significance of the sanctions. Well have to come back to applications at a later date. Ok. Has been put on the sanctions list. He is the ceo rosneft. You have had many dealings with him. What have those negotiations than like and in the past . Have you had recent contact with him . Let me say in the past few but i can only refer back to my statement earlier that we have to investigate the sanctions. I will come back with the implications later. Ok. I understand it is going to take a while to review the latest sanctions from the u. S. And from the eu, but you have had time to jill to the changing geopolitical environment. How has it affected your business so far . Generally, geopolitics play an important part in the energy industry. We have had to mention that. , when it comes to the sanctions, on that, when it comes to that, the gas markets in europe on the short term, the bad weather in europe, europe is well supplied. It comes to the longerterm ef c ect off potential conflict. It is too early to comment and make analysis on that. Is a potential positives in and ability to fill the gap supplying further gas to europe where perhaps europe was to distance itself from a russia . Would you be able to step in where the your pen to do not where thean gas europeans do not want russian as . We will continue. Increase our supply. But in the longer term, russian [indiscernible] what should europe do to replace those russian of volumes . What is your advice . Europes Energy Policy from here . Is important that europe generally works to make sure they have a diverse supply on gas. Es to work has never, europe been better and more diverse especially due to emg. Supplies from other countries. How much slack can norway pick up . You said that cannot replace russia. How much more can not wait can norway deliver . Act of volumes. Additional volumes that can norway can supply. We cannot compensate for longterm, shortfall of russian delivery. There are obvious sources as well to europe. Lmgo you see a future for imports from the United States in europe . Well, there is energy, it is gas supply of source. We see that in high demand. Hopefully, and south america. If europe has to compete for energy, it will complement. Thank you very much for joining us. Helge lund. At the preliminary estimate of firstquarter gdp. The economy and respected to grow as a fastest rate in 4 years. Welcome to countdown. I am mark barton. I am anna edwards. 6 24. Time is is growing at the fastest rate in years. Manus . The consensus estimate. You talk about the fact is growth. Fifth consecutive quarter where we have to growth. That is in the winning stretch. Since the financial crisis. And it will be strong. That is the view of the government and they have upgraded twice. And the imf, twice as well. They are saying unbalanced level. I said lets look at manufacturing and construction and services. Technically, they all missed it or estimates. They are all improving and growing. They did miss their estimates. The economy is rebalancing. If you look at you are a month. Er, look, 15th the cost of living is Getting Better for us. This is important. This the release fact in terms inrecovery ripple effects terms of recovery. Decadefidence is at a 4 high. That is a pretty big number. And investment. This is criticallyant. Rose. Ng spending it is that level. That level of investment. If you have the confidence, quid pro quo. It is certainly a nice challenge for us to have. A fouryear hiatus of the dollar. How much is it based on Interest Rate expectation . Inextricably linked. The debate is do you want assets . Markets are a much bigger. They said there is enough slack and will not get back until normal of five percent. The economist piped up from the other he does that. He said how can you have an economy growing at over 3 . Fair, a very plain, vanilla point of view. Do we have a hot ehouse bubble . I do not know. Veloper will join me later. More on the crisis in the ukraine and what has been at every action to International Sanctions against russia. Welcome to countdown. I am anna edwards. Your fx check. Where looking at sterling. We are looking at sterling. M a boosting. They could be the best quarter since 2010. How long before the bank of england has to consider putting on Interest Rates . It could be a few months. That could be quicker than what many are expecting. The median forecast is 1. 63. Sterling is the best performing this month. Thank you very much. These are the top headlines. The u. S. Is taking aim at the russian president Vladimir Putins inner circles with the lowest round of sanctions. They have added seven individuals and the 17 companies. One the most prominent individuals as sechin. The European Union had 15 individuals to its sanction lets. London is bracing for commuter chaos will stop a strike chaos. A strike is underway. Turkish prime minster has been speaking to charlie rose on the anniversary of the turkish conflict. He was turkeys first [indiscernible] he does not recognize them as genocide. It is such a genocide, it has been the case. Would there living in this country . We have citizens who are transports. They are here in our country that have left armenia. The full watch interview with the turkish Prime Minister tonight on charlie rose 7 00 london time. Additional sanctions against russia. The changes have little impact on the fx market. Good morning. Thank you. Volatility within the fx market despite theows tensions. Why . Of not having a significant fx market. He the russian ruble is affected. Impact from they those sanctions is expected to hit them the hardest. The implication is the market is willing to ignore that for now economiche potential implications of further escalation in the crisis for the European Union. Can russia do anything to soften . Raised a rates. The second rate rise in a short space of time. Can it stop the capital flow out of russia . They are discussing intervention. Possible controls. It is not much in terms of what the officials have signaled. The volatility is increasing. The potential for the further weakness is clearly a worry for them. It includes any further measures. The russian centralbank has experience in managing the currency side. It will be the potential for that beyond that, capital controls could try to prevent any further escalation. Have weve seen seen any impact and the krone . We welcome asking our guest if there will be efax on the economy. U. S. Norway vizio is norway the view is could be an asset. It may be shifting westward. It has been a positive correlation between the stock norwegian. Atoil and it has not been as pronounced. Down the road, you would expect that crisis if it continues to gas impact on the norwegian and Oil Exporters and by implications of the norwegian crown. That impact might be strengthened that it does not have any liquid assets. , that prison is one such. From that point of view, not a positive. Geopolitics may not be causing a of volatility. That is one of the themes. What about mergers and acquisitions . West seen a lot around m a. Is that having an impact . Indeed. There is quite in and pat. Very shortterm. The news comes out and the market moves. Then it is all forgotten. Sterling has been attracting a lot of attention. We had the corporate flow related to vodafone deal. The market is digesting of the headlines. An impact. Is having unfortunately, overall impact is shortterm. The market is responding. Within a couple of days, it has materialized. If anything, it could potentially grow. Negotiations are attracting some attention. I think last week that was seen as a positive. The Later Development by siemens really playing a greater role in that dell. Overall, i would agree. More corporate activity will affect the fx market. The twoday meeting. No forecast will be released. No press conference. No change in tapering to any point in discussing this or not . In march, the only meaningful change they discussed was the target for unemployment. Advanced, adopted a broader measurement. The important thing was the statement itself was not as hawkish as the message. Yellensck of janet comments and on the back of those dots. Those media projections. If anything, the statement will get tomorrow will raise rates. In terms of statements, i perceive as more dovish or hawkish, i doubt it. Exactly. That is really the upshot. The message was in the statement. From that point of view, any changes will address the fact that inflation was stronger than expected. Cpi was stronger may be reflected by the significant change. Paper is expecting a summit of the data developed as expected. They key point on the calendar this week from the fact is the payrolls from friday. The estimates are quite punchy. Strongave to see a very current number. Very strong. Closer to 300. Outside the range we have at the moment. And the jobless claims. There is a chance we could see something potentially closer to the top of the range of the estimates. Distribution if you look at how the market is finishing its, to where the top side. A big way,ee it in you have to see a very strong number. Thank you. Good to see you. Ofentin marinov head European Energy 10 strategy. Ceos alike on and making their own wine. How they stack up in a taste test. That is next. Among the decisions we have made collectively as a Management Team was to invest in china and not just plant the seed but a big trees that will hopefully yield enormous of growth for the company longterm well beyond my tenure. That was walt disney chief executive bob tiger talking about shanghai disneyland. Time for company news. Saideutsche bank, firstquarter profits fell after debt trading declined. Net income dropped 34 . A