Hello and welcome to countdown. A warm welcome to the program. It is 6 a. M. On monday in london this tuesday morning. Is in berlin with the details of apples new software. We have a breakdown of chinas manufacturing data from hong kong and as president obama kicks off his European Tour ryan more. Nextll tell us hour on countdown. Of the ukraine crisis on investing in russia with the cfo of royal dutch shell. Commodities and other exclusive compensation with the chief executive of rio tinto. Later this evening Goldman Sachs chief executive lloyd link find and Michael Bloomberg said down for an exclusive conversation. Do not miss that interview at 6 30 p. M. London time. To our topt back story. Apple wants to help you control your health and her home. They introduced new software for the iphone and the ipad edits annual developer on france and san francisco. To talkhols joins us tech. Where is apple leading and where are they playing catchup . Rex i think that is an accurate way to look at it. When you look at where they are apple wants to have parity. They want to be in a position when they will launch their watch emma they want to have a platform to fully control your health. And the cloud computing, apple is clearly behind and this was an attempt to catch up with the whatsapp of the world and dropbox. They want to have a fully between yourstem ipad and iphone, maybe even windows. Here is tim cook describing the new operating system. If i receive a notification if i get one just then i can swipe across. I have actions, i can accept or decline this meeting. I will use the device, and laying some music here. Just swipe down and i get access to my keyboard. I can type array there. I swipe to the side and i have access to all my favorites. I will launch the mail. I have a number of unread messages so lets work our way through. Message with a dinner appointment. You Notice Company that has elegance, they switched to a coding system. , 13. Oungest developer the new system got a lot of applause. They should have said make an app with this new code. This is supposed to be a conference for developers. I understand dr. Dre might have made an appearance. He made a virtual appearance and cause asked what time he should show up for work. Dr. Dre gives it a little bit of cool. Open for their app store to allow payment from virtual currencies. It was clear where they are heading. Can you can download and pay with the stash of bitcoin. Hans nichols joining us from berlin. Asian stocks rising for a second day. We had data on services as well. David joins us with the details. What was the take away from the numbers . He means that things are stabilizing. They put out the numbers as you mentioned. Than thettle softer initial reading. The take away is if you compared to april and keep in mind the official numbers we had yesterday. We did see a stark improvement. That was the biggest improvement. A fourmonth high right now which suggests that Business Conditions have improved on the ground. Hsbcs reading is more focused. Youaller sample size and look at private companies so does give you an indication of where the pain has been most felt. We did see an improvement in sentiment. Economist went on to say that it is too early to conclude that china has bottomed out. Mainly because of the property or. That is the wildcard card race here but it depends on whether lose on the will fiscal and monetary side. Just staying with chinese news trade we have news that Google Services are being affected as beijing tightens control. What do we know, what is all this about . It is not surprising. June 4 marks the 25th anniversary of the event. Topic forry touchy the chinese government. Censorsen the state tighten control. Those are the services that have in blocked since last week. I have checked with several people and what theyre saying is there have been disruptions. Sometimes it works and if it does it is very slow. Extensivelyhecked on their end and they are saying there is no technical problem which points to what we all know. It is not the first time this has happened. Our website has been blocked in china for about a yeaeait is a touchy subject her. When you have ethnic tensions and a lot of discontent and corruption as well. You do understand why perhaps they are doing this. But then it does not mean a lot of people will agree with how they are doing these things. Back to. President obama touches down in poland kicking off his fourday European Tour. The trip comes amid some of the highest tension since the cold war. Oft is the significance starting the tour in warsaw . Rex he is reassuring the polls that the u. S. Stands with them. Theres a lot of concern that the u. S. Is amidst a pivot toward asia. These economic sanctions has been threatening against russia to punish them for the annexation of crimea are not happening. This is a way of saying we support you. He will announce a european reassurance to boost offensive capabilities. We have sent f16s to poland. We have sent a company from the 173rd Airborne Brigade they stay in italy. This is another visual way of saying the u. S. Stands with you. Two key are anniversaries taking place. One in poland. Didi on friday. When they came in oakland the western front. Is freedom day in poland. The 21st anniversary of the first free elections as the soviet union and the soviet bloc fell apart. The primenk about it minister telling me we are moving toward a cold war. Beingeel like they are reconstituted as the soviet union. And the u. S. Is becoming an enemy. All of europe is now a new ground for competition between these different models. Russia is not the soviet union anymore but it is an autocratic model. This is what youre seeing here. You could not get any more symbolic than obama showing up on the eve of this anniversary. I think that is part of the message. Onwhat is the state of play the ground . Rex we had that attack yesterday morning. Hundreds of rebels involved in this attack that went on throughout the morning. And then about midday we had a massive explosion in the administrative building in the city of luhansk. Out that it looks like it was in antiaircraft missile that the rebels were using against ukrainian aircraft that went astray. 12 People Killed in the fighting yesterday. We had those gas talks in brussels which appeared to be somewhat successful. We have had another week extension. They agreed to meet again late this week or early next week. The russians agreed to put off that idea of prepayment and they agreed to a deal that would last for one year. They have tightened up the scope. If you look at the russian market the month of may, stocks rose by 12 . Their best month in a very long time. The market thinks that deescalation has begun. Thanks very much. The latest on ukraine and the geopolitical events taking place this week. Will get reaction to the countdown. T on time for todays company news. Apple has unveiled new health and home connected features. Including health kits that let able monitor their health and allowing people to control garage doors and locks from their phone. A person with knowledge of the matter said the cuts amount to about five percent of the workforce in the region. Google services are facing blocks ahead of the 25th anniversary of the Tiananmen Square crackdown. Searches have been blocked in china since late last week. Welcome back. The time in london is 6 50 a. M. Is the economy stabilizing . Us. Ael osullivan joins is the economy stabilizing . It caught her range of small companies. You had i would call it stealth and we also had currency weakness. That had been telegraphed as a technical move. Morelet the currency move than what people expected. Are property prices coming off the highs and we have not had a good recession in china. You watching property prices carefully and watching profits and Profit Margins of Chinese Companies because there is a lot of operational gearing. Does the tension around events and geopolitical that are in focus, are they on have theylist or moved lower down . Rex it has moved down. Had the crisis happened we a buy recommendation and we stuck with that. The market has rebounded quite nicely. The unfortunate tension and fighting is still there. There is an opportunity with the World Leaders gathering this week to begin to have some serious dialogue. This unsatisfactory status quo will persist. Ukraine not have the one else will have it either. Try and Say Something that has not been said. It is all heavily choreographed. What has not been focused on is the way that the ecb will get the small and medium enterprise. You hear a bit more in the statement about institutions like the European Investment bank. We will hear more detail on how some of the thinking layers will play a role in getting liquidity. More about demand for credit. A lot of focus is on supply. We had a guest on yesterday who said there is not that much demand. It is a supply issue. The ecbig issue that and authorities are looking at is deleveraging. Also a situation where Small Businesses, many of them are real estate ventures. Sort of dressed up as businesses. Many entrepreneurs do not have the confidence to launch new product. Credit is demand for an issue. Anything that we could hear in unemployment data . , we havenk the market peaked in terms of the momentum of the macro numbers. The market disappointed on thursday. European markets are very short term. Thank you. Invest. Ghts on where to when we come back. It worked well not just for the middle east and Hong Kong Market but he on the middle east to europe and africa and the middle east countries and beyond hong kong. In the end the consumer wins. Pacific ceothe cafe speaking from the gathering in the Airline Industry in qatar this week. Welcome back. , how wouldosullivan you explain the behavior investors where they are pushing yields on 10 year treasuries and at the same time theyre buying german shares, pushing the decks to an alltime high. How would you explain that . Rex with great difficulty. Theres a couple of things going on in terms of positioning. Pension Institutional Fund minded investors are eyeing you in the treasury market and holding on. In equity markets we have this strange drift higher. Twolast 20 years we had periods where the vix has stayed for 60 or 70level days. We are entering into that right now. Toh of those were related various bubbles and it ended badly. There is a positioning effect. The macro news that underlies market is pretty good but i do think there is a sense of complacency. The underlying explanation is that markets have been and we have become enthralled with these big qe programs. They were supposed to be unconventional. You have talked in the past about investing in hedge funds. Where are you with your investments . Rex we look a lot at hedge funds for our clients. The performance within different hedge funds started across the industry and it has been very mixed. It has been a difficult environment for normal investors and hedge funds. Budgets are being cut back. It can be tough for them. You could take a number of approaches. If you look at hedge funds styles, the arab funds have done very well. There is one or two that have done very well on the short and long side create if you are a contrarian there are some hedge funds that have not done that set up foro might be the rest of the year. If you want more structural way to play volatility some of the macro funds might be a good idea. Just go alonghink bonds and long equities. Would that be at stupid decision to make . The rulestake all of of investing we were talking about recovery in the business cycles. We were long stocks and short bonds. Much. K you very were looking at the euro this morning. All eyes on that inflation data wreaking later today. Will inflation slow as anticipated . We are getting a little bit of a reprieve. Up ever so slightly. Some interesting comments. Euroman paper saying the strength is temporary. Not enough of a reason to cut Interest Rates. He sees no danger of deflation but still the market is very much looking to ecb to unveil sunsetted stimulus later in the week. June 15 is when we get mario draghi taking to the stage. Thank you. These are the Bloomberg Top headlines. The u. S. Department of justice has disabled at Hacking Network that generated losses of 100 million or more internationally. It announced charges against behind the game. Authorities are urging computer to run thorough scans in the next two weeks to remove the viruses from their computers. A dozen people are dead in the province after clashes. Insurgents attacked and people died in a blast rebels say came from an airstrike. The key rates with at 2. 5 for the 10th month. The central bank of india has left rates unchanged for the second straight meeting. This is an a nine day old government. Predicted by all 38 a numbered news survey. The r. B. I says that further policy tightening will not be warranted if Consumer Price inflation stays on course to hit percent in january 2015 and six percent a year later. If this inflation is faster than its is dated it could revive headroom for easing of the inflation. Consumer price gains did a. 5 which is the among 18 asian economies. Has slowed and if it continues to slow there will be no need to tighten policy. There might be a need to ease policy. And the sensex hit another record. 17 year to date. Apples new product unveiled at project ers conference. Operating system at project in the pipeline . This was the developer conference and there have been a few hints of hardware not launches. We saw none of that. We saw a updates to existing and laying the foundation for future business. Round lets talk about those foundations. Health kit and home kit. What are they . We do not have enough information yet. Are light on the details. What theyre doing is quite interesting. Out when youding extend your house you know the foundation. That is what theyre doing here. Theyre doing it as a platform. About applebe just products. They want to be the people who systemsdata through the and control that bit. You will be able to switch her lights on with your iphone and so forth. Is interestinge because it is a very messy market. Ands of different products apple is trying to bring that together under one system. And legitimizing that whole area. Theyre doing tieups with other companies. For are they revealing their own hardware . A bit like the app store. To usea lot of people their systems and enable a much bigger market. It has been criticized as closed. Some people pointed to that as one of the strengths. We think that openness is important. It had a more relaxed style not used to seeing. The apps onallowing the device to talk to each other. Also this enabling the ecosystem. We think it is a new style. The biggest in the piece came announced their new language. Means. Itthat writing appsoing which is more efficient and it works faster on the machine. Can live sidebyside with the existing code so you do not to completely learn everything and switch over. This is just technical progress. And progress in storing and sending files, should that be welcomed . That is right. Been criticized for what it does on the web and its services. Weaker and here we saw them taking on dropbox and bits of facebook and snapchat and areag to strengthen that out to position themselves. I think there was quite a lot of catchup. They talked about the number defectingwho were onto their devices and they are on china as an important part of their business. Terms ofis huge in where that growth comes from. He talked about people defecting from android to apple. But bit going the other way. That has been a worry android is so big that developers focus on android. Apple was trying to pull them back again. Who is in the lead would you say right now when it comes to those services . It is difficult. There are a number of large players. Developer its big conference in a couple of weeks. Its conference at the moment. They are moving forward in ways at slightly different speeds. We where we heading on hardware . Were still waiting for this wearable device when and if that comes out. Do you think that will be announced later this year . There are high hopes. There are high hopes. We might see a slightly bigger iphone. Is it time for a new ipad refreshed . It is early to speculate. You for joining us. Ccs. Ng us from geeking out trousers company that is making the business of choosing an outfit easier. That is next. Companyfor todays news. Intercontinental hotels chief Richard Sullivan says his company does not need a merger or takeover in order to grow. He declined to comment on speculation it had taken over half of the kind company. It had received a bid valued at 6 billion pounds. And the largest search operator is set to start trading. This coincides with the government cutting dependence on foreign exchanges. It is listed in new york. Tumbledreme doughnuts 14 after cutting its Earnings Company cites sluggish firstquarter sales and mounting costs. The company is struggling with higher than anticipated costs for its new planning system. Countdown. 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My next outfit would set me back war than 500 euros. What a job like i can ship that back free of charge. Things are not too tight . The size is really good. Heres the box that will put we will put to the test. Total price 340 eu