Transcripts For BLOOMBERG The Pulse 20140303

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europe, good evening to those in asia and a warm welcome to those waking up in the united states. i'm guy johnson. francine lacqua is off today. this is "the pulse." we are live from bloomberg european headquarters in london. british foreign secretary william hague has just been making statements in kiev. let's get the latest from what he has to say. remember, ukraine mobilizing its military within the last 48 hours. as russia tie-ins its grip on the crimea. ryan chilcote has been joining -- following the story by kiev -- from kiev and he joins us by phone. foreign secretary arrived here earlier in the day. like you said, there is going to be a whole number of foreign ambassadors and secretaries who are coming here. saying thatbeen russia complained that its interests in the east and the south of the country when it comes to the russian speaking population had been ignored. of course, first and foremost, he is saying that he is in ukraine to express his support for ukrainian sovereignty. i think we can expect quite clearly him to work very carefully with secretary kerry of the united states who will be in late tonight and with the ukrainians tomorrow morning to do what he can to prop up ukraine but at the same time tried to, with a way to punish russia. to speed with the latest military situation. clearly a mobilization has taken place over the weekend. but it is not clear who is on whose side. >> that's right. -- russia in control of crimea. troops on the ground. they are working with a russian speaking militia there. got permission on saturday from the parliament to deploy troops. but these forces actually a. before that permission. there is a sense that we actually could see an escalation from where we are now. yesterday they surrounded ukrainian military bases. like you said, the ukrainians themselves are mobilizing but also seeing defections. so, just over the weekend we have seen the head of the navy defect. pro-russian crimean authorities. ironically just one day after he was put in the job after his predecessor was fired over concerns over his loyalty. so, clearly that is one of the reasons why we are hearing people describe the events in crimea as russian inspired coup. but clearly the ukrainians are having a hard time holding onto some of their own military personnel. keeping their military establishment in place to try to deal with some kind of russian threat. >> we will leave it there. thank you very much, indeed. my colleague ryan chilcott joining us on the phone from kiev. we are seeing capital flight effectively from russia. markets are selling off from russia to western europe. the details of what we have learned -- john joins us with that. we see the rate hike out of moscow to the stock market under underre, the ruble pressure and that is bleeding into other markets. >> what you got its escalation risk and if you are in investment you have to try to discount this and that is what is driving the markets would russian equities down the most since 2009. they have to deal with the prospect of capital flight and the ruble hitting record lows after record lows, and that is not good for inflation. a central bank can do is address the political risk. there is a real strong current running straight through the markets. >> talk to me about kind of what people are saying happens next. talking aboutn how to punish russia. how do you punish russia? you hear echoes of the iranian examples of how you put trade sanctions on iran. russia is not iran in many ways. you can put a cap the amount of oil iran exports and the u.s. can make up for that. you get a third of eu imports of natural gas coming from russia. this is a big, big deal. how much leverage doesn't take away from eu foreign ministers where they are negotiating trade sanctions and the kind of trade sanctions we can see could be shaped from the very lack of leverage -- >> another way of looking at it, an interesting conversation that took place between angela merkel and vladimir putin whereputin -- putin was doing a little saber rattling, don't forget he sells you all your gas. that is critical to the russian economy and the russian economy is so heavily geared toward hydrocarbon. >> 20% of the export revenue comes from gas. there is real exposure for both of them if we get these kind of trade sanctions. but i really think that is the key. you can't really hurt russia on the gas side without ridding europe as well. >> the market i did not consider that could be exposed, the london housing market. if you were to put sanctions on a whole series of russian oligarchs -- >> where would they put their money? previously wanted exposure -- or have free movement of capital in and out of the u.k. -- estate agents are nervous this morning. >> may be. and the super prime. >> evidently in the super prime end. let's discuss the international reaction. let's get more focus on it. our europe editor david tweed is in berlin following the latest. let's talk first of all about where you walk, the reaction from germany. were talking about how angela merkel had the conversation with putin last night. not a lot came out of that conversation, it seems, apart from the fact that putin accepted a proposal from chancellor merkel that observers can go into premiering -- crimea and actually see if there is any that someo the fact of the russian speakers are being discriminated against. that is one thing that came out of the conversation. there's something else that i think is even more disturbing, and this is a little snippet, it came from a new york times guy. briefed on the conversation angela merkel actually had with obama. when she was asked about what her impression of speaking with putin was like she responded that two was "in another world." she said she was not sure if putin was to -- in touch with reality, according to people briefed on the call. that is a little bit concerning. in terms of the meetings that have been taking place, hague is in kiev, secretary kerry flies in and would have the european foreign ministers meeting today. what can we realistically expect on that meeting, david? has been speaking in berlin, attending a conference on the future and soul of europe, a cultural thing. but he was asked about what we could expect the -- out of the meeting. he said the foreign ministers are preparing a package to support the ukraine. that is absolutely key. the question is how quickly that support can get to the ukraine. he doesn't want to talk about or speculate about sanctions against russia at this stage, although we have heard john kerry saying he has spoken to foreign minister's at the g7 and other countries saying they are willing to back to the hilt the idea of isolating russia. sanctions, wens have to wait for the conclusion of the forward ministers meeting in brussels. finally want to make the point they want to avoid escalation. that is clear that is what they all want to do. thank you very much, indeed. our europe editor david tweed joining us from berlin. let's shift gears. the world is still turning, businesses are being -- business is being done and people are shopping. the owner of -- and looking to -- could be looking to buy the iconic brand j.crew. bloomberge, our european correspondent, caroline hyde. with a hefty bisected >> $5 billion. that is what people are speculating what j. crew could be worth. we know it is looking to be offloaded by two private equity holders, currently held by tbg capital. are options, other people sniffing around j. crew. abbott international, or they could sell shares. what they are reporting is of the owner of the biggest producer of clothing in asia could be fighting it to get more into the united states. because theyting are a cheaper outfit. this is more aspirational. once again, the aspirational younger shopper. hey would continue to operate as to separate unique brands. >> supper businesses. it does not seem to be very clear but they have taken over slightly higher and names. upmarket jeans. about the richest man in japan, the owner of fast retailing, the ambition to drive the company forward. he wants to get ahead of hmm. he wants to be the -- he wants to be the biggest in the world could get this -- quadruple sales by 2020. he wants the united states to make up a 1/5, 20% of his sales by 2020 and overseas sales to exceed those in japan. and already they have 500 stores, just above that, overseas. 300 a year he wants to open overseas. aspirations.menal germany, australia, these are the countries where he wants to make forays into. and going more glitzy as well. stores inbeen opening shanghai, fifth avenue, new york did and for a japanese company, also looking to have english as an official language. very un-japanese. getting the president of juicy couture in and hiring. thank you very much, indeed. caroline hyde. slave"head, "12 years a scoops up best picture at the academy awards. we will talk oscars and what is hot and not when it comes to film funding. simon oates will join us. find out what he says is easy to attract investors -- why is -- why it is easier to attract investors in the u.s. than in the u.k. ♪ >> good morning, everybody. welcome back there you are watching "the pulse" from bloomberg european headquarters in london. surprise 150 basis point hike today from the russian central bank. as you can see, the ruble is under pressure. makes you wonder how much itssure there would be if had not had the rate hike coming through. remember, that makes it more desirable to have your money in rubles. but nevertheless the pressure is on and the currency fight is a factor. pressure is on the ruble this morning. more of a slow, steady decline over the last few months. separately -- certainly accelerating this morning. let's stay with the ukrainian crisis, because that is a factor. a fellow from chatham house joins us now. good morning to you. the situation is clearly developing at a pace. the focus today is how the west response. we have seen developments over the weekend. effective annexation of the crimea by president putin. if you were designing a policy that would push back on that, what areas would you focus on? has already kerry identified some areas and i will look very hard at the russian economy and the impacts of a strong western response to what rush is doing. so, this could be anything from targeted asset freezes through foraking it difficult russian companies, russian state companies to invest abroad. targeting specific individuals. visa bans, things we have seen in part related to another case. i think the russian economy is not in a great state at the moment. the investment climate is not in the best shape. and i think this crisis really further, -- escalates the west takes a very firm line and takes a -- make an effort to position of the interim government in yemen then pm bank has few options. few options. massive force, take hold of eastern ukraine a step back? split inee a possible the ed in the moscow. tin has always seemed best viewed the western response as transitory. you get a response but he thinks slightly more long-term and as a result -- we will live with it a short period of time but we will get through it. how do you change the mindset? >> first of all, i doubt he is thinking long-term here. it rather looks as though this policy was developed on the hoof, a response obviously to the very rapid unraveling of yanukovych's rule and the pressure was building up through sochi but people do not see it because they were thing that's keeping it relatively quiet. how long has he been thinking -- a lot of seasoned russian observers think it has not been thought through it all. the way turkey is responding, -- that this could result in strong consolidation of ukrainian statehood and russia could be viewed in a different way so russia is not winning any friends across the border in ukraine. longer-term view the west have to take is what is this actually going to do to ukraineif we see develop more successfully with successful democratic governments able to capitalize on some of the strengths of the company, tied closer to the west. this is also going to rebound in russia particularly of russia is isolated at the same time. >> i guess i make the point because it seems like g.a.a., -- talking about suspension. >> they could get kicked out. >> how painful could that be? >> i think it could be a humiliation. not turn out for a meeting saying we do not tolerate your behavior. what it does not stop there. there could be other areas they feel isolation and it could hurt. think youer to you and i should be, western consumers? europe gets a third of its gas from russia. how is that likely to limit the eu foreign minister response? >> i think foreign countries, particularly germany, see the russian problem it would from prison because of the economic cooperation and they are a major importer of gas. but at the end of the day, this is a story that if the russians wish to limit gas supplies to the european market they will suffer in the process. i think you heard that on the program again already. want to is, if they expand, they have a strong interest in expanding the reach of the energy companies abroad, i think it will be extremely proud -- problematic in the circumstances. again, finding a much harder to attract the kind of investment they need and developing the greenfield or blue field projects in russia. so, it doesn't look like a very attractive scenario just at a time when the economy in russia is slowing down. >> the chinese have been nervous about a resurgence of russia for a while now. how are the chinese going to view all of this? what side are they going to come down on? about the realng long-term thinkers in the case of the chinese. i don't think they have actually been especially concerned by russia's resurgence he, as we call it. they have been able to drive a coach and horses through russia's influence in central asia to for example. i think they are very surprised that the number of things the russians have done the past two decades. capitalize on the boom years and the commodity markets. it rather looks like russia has beodel -- that cannot reformed. >> and more of the same from the chinese? >> i would've thought so but they will not support russians on this because -- indeed. just finally, when you look at the response that the west has to all of this. use a policy is being made very quickly and on the -- use a policy is being made very quickly and on the hoof, if you look at lessons, is given bank individual case he can't form lessons from the pass and if there are listen from the past what would you look at? georgia is more recent. what can we pull from history? at theink we can look period immediately after the class of the soviet union. russia played its card with the russian speaking populations, the need to protect the right directions abroad. we saw pressure in particular on the baltic state, estonia and latvia, large russian speaking communities. we were able to withstand that and those countries could manage the issues. onre is a story to be told how that was done. at the same time russia was able to support a separatist entity on the territory of mulled over inmoldova in 1992 and then 2008 the georgian rices were russia succeeded i believe in promoting president shock is lli to useshakavi force. in this case a crime year it does not appear the russians even have a fig leaf of legitimacy the actions because there is no evidence russian speakers have been oprah asked or in any way threatened by the new authorities in kiev. we need to look at the lessons of history and see how we handle the period immediately after the end of the cold war. at that time, of course we had a russian leadership in broad terms sympathetic to the west. thank you. joining us from chatham house. coming up, crunch time for president obama. he cause for action when it comes to the israeli-palestinian peace talks but calling for netanyahu to "seize the moment." our exclusive interview with the president after this break. >> time is running out for israel to make peace with the palestinians. president obama made the comments within its -- in an exclusive bloomberg interview with elliott goldberg. normally president barack obama has been happy to stay out of the limelight when it comes to the israeli-palestinian peace talks, but now on the eve of his meeting -- and as we get closer to the deadline for a framework agreement john kerry has set for the israeli-palestinian talks, he is winning in any says my hope and expectation is that in spite of the incredible political thomas is that both netanyahu and abbas can arrive at a framework that can move us to peace. jewish sage,evered if not now, when, if not you, mr. prime minister, then hugh. reaction, i will not give into to pressure. >> just 10 seconds. he talked about iran and syria as well. wasn terms of syria, he criticized for not making good on his threat to use force in the event amoco weapons were used. he said, first of all, diplomacy is working. chemical weapons belonging to a side are being destroyed and second of all we might have made things worse if we had gone in. much, indeed.ery elliott gotkine. we will take a break. back in two minutes. ♪ >> welcome that. you are watching "the pulse." we are live from bloomberg's european headquarters in london. i'm guy johnson. i collect fronts in the quad is off today. -- francine lacqua is off today. pistorius on oscar trial for the murder of his girlfriend reeva steenkamp. the defense lawyers say he believed that she was a burglar. russia's a central bank raised its key rate to 7.5% from 5.5% as of 11:00 a.m. moscow time. the central bank says the rate increase is to prevent inflation risk and ensure financial stability, this according to its website. u.s. secretary of state john leaders a western responding to russia seizing control of the crimean peninsula. the ukraine said it has mobilized its army. >> it is really 19th-century behavior in the 21st-century first century and there is no way to start with, that if russia persists in this that the g-8 countries will assemble in sochi. that is a start. fromt's get the latest ukraine. where ryan chilcote is on the ground. british foreign secretary has been speaking this morning. bring us up to speed. >> i will give you the very latest. of the russian prime minister has just announced that he -- russia is establishing a company to build a bridge across the --this literally happened the last couple of minutes. pretty -- the straight connects -- effectively it will connect crimea to russia proper. it is foreign half kilometers wide. and it is, again, what is separating russia from what is at the moment a noncontinuous part of where it now has forces which is crimea. very dramatic. interesting to me, at least, because it suggests russia has intentions to keep forces or interest in the crimea for a good long while. presumably this was not coordinated with the federal government a ukraine. what you have effectively is 6000 russian forces right now and crimea, what most military experts think, working together with the low shall vest local militia. military been seizing bases, or at least surrounding them. on saturday the russian president got permission from parliament to deploy troops to protect russian speaking people in ukraine. interesting, that permission came after the forces appeared in crimea, suggesting to some that infect the real deployment or in fact a larger deployment has yet to come. side, they have begun mobilizing forces. people are signing up. they also had defections, pretty senior level, the head of the navy defective and he also tried to get others to defect. at the moment it appears unsuccessfully. the main thing, we have the standoff but no bullets yet to fly. >> we will leave it there. thank you very much, indeed. within the last few minutes christine lagarde indicated the imf mission to ukraine will begin tomorrow. we have plenty of market reaction to the situation developing. markets have been selling off aggressively when it comes to stocks in russia and across europe. seen the ruble under pressure despite a 150 basis point hike from the russian central bank. john joins us now with the latest. >> i selloff. russian equities down by nine percent right now. -- i selloff. -- a selloff. not a single bullet has been fired but if you are an investor it is about escalation risk and maybe to some extent you try to compensate because european equities are lower, we have seen general this conversion -- risk aversion. golden little higher as well pit one of the biggest movers of the stoxx 600, was a gold producer. nevertheless we are seeing the safe havens being sought. the rate hike from the russians something of a surprise. to deal with inflation. one of my guests put it earlier that may be is having problems financing x works as well. >> one way of looking at it but -- gas into europe, how much leverage and how much of a can punish the russians right now. if you've got a third of your natural gas supply, a third of those imports coming from russia, maybe it takes away some of the leverage but bloomberg news but a great piece together talking about our files of gas storage. maybe this is where europe has a little leverage. u.s. gas stockpiles, and u.k., the highest since 2008, likewise with germany and italy as well. so, they've got gas. they got the inventory. maybe it gives them a little bit of leverage in these negotiations, where you have that kind of conversation with merkel and putin where he says we supply all of your gases and merkel says, we have the inventories, out. -- too. >> the european markets continue to be reacting. walk us through what we need to know. >> there are many european companies that are largely exposed to russia. let's put some of them up there. morgan stanley did great research. a cosmetic company -- not your first port of call, guy --but a good percentage of revenue coming from russia. and nokia, entire company, 30%. erg, beer, then known, every industry groups -- car, bank, societe generale, unicredit being hit. karlsberg.sumer, whatever industry group, fears are a weakness. if you are russian you will not be able to spend quite so much on foreign products. doesn't lookally to imports for a large amount of their consumer. so, we will see that obviously there imports will be losing in terms of that respect and also interest-rate hikes. many of our desk this morning pointing a russian oligarchs could be the target of sanctions. the market we have not talked about yet, london housing market. the prime london housing market. >> could be many others looking to stop those. >> caroline hyde, i'll european business correspondence. european business correspondence. let's shift gears. geneva starts tomorrow, the motor show. we have a little warm-up. the car that drives itself. ford showcased its autonomous prototype vehicle that uses infrared light that brings us one step closer to getting rid of one of the most unpredictable elements when it comes to driving -- the driver. >> this is a ford fusion hybrid. it looks like any old ford except for these. cinches --ed light sensors. scanning the environment much like a dolphin would but without a click. creating a 3-d map by bouncing infrared light off of everything, making to one half million measurements every second. accelerate, car can brake, or swerve without being told to. is autonomous. >> there is a long way to go in that, though. probably the next big step is cars talking to cars so that the cars can communicate road conditions, safety conditions. i suspect that the technology will be there before the legislation and drivers are ready to accept it. how people feel being overtaken by a car with someone not driving. >> ford aims to have them on the road in the next few years. >> as i just said, we will carry on the conversation tomorrow, the geneva motor show kicks off with plenty of great coverage for you. gm, joining us early on. all the major ceos joining us to tell us what impact the business is seeing when it comes to the ongoing situation in ukraine. 20 minutes to go until "surveillance" and tom keene joins us from new york. amazing market reaction to what we're seeing in ukraine. >> coordinator reaction 111. over 111. in the united states the united states is focused on secretary of state john kerry. us greatft has given perspective. ian bremmer will join us again. ian bremmer with eurasia group. we will talk about the historical perspective. to 9/11.ack and then how purred some a he will join us -- and then dan hal pert will join us. ukraine,y weighting to crimea, the news flow from madame christine lagarde and then the market reaction as well. headline thater caught my eye, ryan chilcott russians forming a company to build a bridge that would link the crimea back to russia. so, maybe some long-term thinking beginning to come into play. that would certainly be a very dramatic indication for the long-term. >> that's right. >> tom, we look forward to the show. great guest lined up before today. w.a.r. analysis coming up on the ongoing situation in ukraine -- a more analysis coming up. an american skier leaping to the top of the moguls in the out ofle after crashing the singles. she came back in a dual event. this taking part in japan. battering.ee slopestyle continuing in switzerland. ld.tria taking goa pretty amazing conditions this weekend. thick fog and really icy cold. from one temperature extreme to ain, lewisin bahr hamilton came fast as in the final day of preseason testing. his mercedes in good standing for final competition in australia. not a great day for the maestro, he cannot even finish a lap before more mechanical problem struck his car. reliability is going to be the big challenge this year with the new drivetrain, one of the biggest factors, how many cars will finish the first grand prix down in australia. that is the big question everybody is talking about. glamour,f glitz and lindy of it last night at the oscars ceremony. will take a look beyond the red carpet at the winners and of filmn the business financing. detailed up next. ♪ >> good morning. welcome back. we're live from london here at bloomberg television. i am sure you noticed the oscars wrapped up, with "12 years a slave" winning the coveted best picture. here to talk about investing in the film industry, simon oakes and president and ceo of a film production company hammer. is may remember why hemmer famous, part of exclusive media. you made great films of the last few years. did incredibly well. when you look at events like the oscars and look at what it takes am a mondaytakeaway morning, what can i as a film investor take away from what i saw last night? >> as an investor, i think it is difficult because i think that clearly british talent figures least twoly in at thirds of the nominated films. whether it be writing, direct -- directing, acting, behind the camera. investing in the industry in the -- the sense is a future future. but you have to be realistic, most of these films are delivered by studios, warner bros., fox in the u.s. and 12 kanal-- and this country, , french owned. the real money for the investor is having a piece of the distribution. that is possible to be. >> no trends that emerged. nothing new this time around. trying to gauge what is happening? >> i think it shows it is very healthy. i think it shows it is a global industry. , progenyy came from was very varied and you had low budget films that had an impact "ke uncle philomena -- like philomena." it was right across the board. i think a very healthy industry. >> we were talking earlier about the silicon valley focus. if you want to raise money and get in front of investors. how does it apply to your industry? what -- >> i think high net worth in the best individuals who invest in pictures in america is a common thing because it is an industry there and it is the biggest individual market. china will be catching up at some point, i guess, but i'm not sure it really will happen. the fact that america, there is a relationship between high net worth and investing in movies and the market. i think it is yet to happen here. although i think there are opportunities to do so now. and some of the ways in which people are doing distribution deals. david, with a new way of investing and producers owning the backhanded theatrically and dvd in a very creative way. i think there is an opening now. and i think being -- the one scheme that was derided in the past where you can only invest up to 40,000 pounds, now you can invest up to a million pounds. i don't think it is driven by what happened last night. the fact the bible can up and --lized one of our biggest people woke up and realize one of our biggest export is the talent. >> having such strong british as at and being able to -- british film producer is it easier to get british talent for the films or are they effectively free agents? >> i think they are free agents. iripts, scripts, and -- no, think the thing is what is happening now is the best actors, they can pick and choose. they can do a big trip. comics and a marvel then they can go to theater. there are lots of options. thate we making enough of talent in terms of using it to leverage british produced, european produced film? >> i think we are. i think we are starting to do so. there is a natural loyalty of british actors and talent to work in british films. for example, a film like "daniel" -- hettelston were in big movies. i think generally speaking british actors will go with the best. >> on that note we will leave it. thank you very much, indeed. the president and ceo of hammer. number one market story of course is what is happening in ukraine. the russian crisis developing, could be the biggest one since the cold war. investor selling off their details next. ♪ >> welcome back. we will tell you now what you need to know about the rest of this monday. our team is back, focused on the ukraine. ryan chilcote from kiev, david tweed from berlin and caroline hyde joining me. let's start with currencies. >> yen stronger, frank stronger, risk aversion, the only play two watches dollar-ruble. russian currency record lows .ven after the hike rates no move from the russian central bank for 18 months, and they put the rates up the most since 1990. the dollar stronger. the ruble getting weaker. the central bank is fighting a strong tie. flight a big story this morning. caroline, walk us through the european reaction. >> european companies most exposed to rush are the worst performers. nokia, and then a tiremaker like it's a third of its sales from russia -- gets a third of its sales from russia. every industry group getting hit and the deterioration continues. >> we will continue to track of the rest of the day. let's turn our attention to what is happening on the ground in kiev. ryan chilcott is there. >> i will watch out for the imf delegation scheduled to come tomorrow. i will also be watching for john kerry, he is set to arrive this evening. and what is the russian military going to do? saturday, two more warships, sunday, two more warships. obviously i am going to have my eye on what they did today. the russiansrned are forming a company to build a bridge to the ukraine. >> extraordinary. for half kilometers wide, the street is the only thing that isarates rush from -- strait the only thing separating russia from crimea. they will set up a company to build that bridge. >> ryan, thank you very much that let's turn our attention to the foreign ministers meeting. we have already seen the british foreign secretary in kiev and we hear secretary kerry will arrive later on. david tweed? >> three things i am going to look out for. one is what kind of moral support the foreign ministers will get to the ukraine. are we going to see more than catherine ashton turned up wednesday? foreign will see other ministers going along with her. that will give a very strong statement to russia about support coming from the european union. in second thing is, what aid the european union put together. christine lagarde saying the imf mission is going to start tomorrow. what will be the contribution that comes from the european union? secondly, how can the european union take action to actually hurt russia where it hurts, and that is economically? what sort of sanctions might they discussed? has alreadyaid he spoken to foreign minister zwilling to isolate russia to the hilt. what is the european union really aiming to do and what is their plan? we will find out later today after the meeting. >> is there a sense that there six -- significant exposure to russian gas. germany did a lot of it. >> at the same time germany gets a lot of russian gas russia gets money percent of its exports from castle is russia willing to give up money percent of its 20% of itsenues -- export revenues like that? up there. wrap it david tweed. thanks to our whole team covering the story throughout the morning. remember, tomorrow morning, the geneva motor show kicks off. we will have extensive coverage. see you then. ♪ >> the secretary of state will travel to kiev as wretched dispatches additional force it to crimea. margaret's respond this morning. u.s. equity futures are lower. ellen go, let it go -- tweets out a selfie and crashes twitter. this is "bloomberg surveillance," monday, march 3. joining me is scarlet fu and cory johnson. russia, theyrom raised their key interest rates in response to the ruble falling. bps, up to seven percent. an eight month low. >> that's a big move. china pmi, u.k. mortgage approvals, personal me

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