We tell you how to indulge in retail therapy. A billionaire brawl in sydney. A billionaire street fight involving the richest men in australia. With a more tricky situation. Ahead of the strategy meeting later this week. Lets see what is going on. We will be joined by the analyst, jonathan. The least. Ng, to say really disappointing. Yes. A mixed bag. Fixed income may be down 20 and they are also suggesting that. Jp morgan suggested that 1520 down is the running rate. It looks like they have figures wrong and could cut costs. The ratio is going the wrong way. Free easygoing. Is the realhat problem. Absolutely. The underlying business of the sales provisions are better and the margins are holding up, mostly. You cannot get past this issue. 15 versus 40 is a big spurt. That in the strategy. They will be prepared to talk about what they are doing with the business and which area is being cut back. Cut costs equity. So, it is important day and i think, more than ever. In terms of Investment Banks, a lot of layoffs. Yes. The marketing of why they are down is a very ambitious quarterly target and the run rate is well below that. It will be something more than it appears. Looking at where business fits in and whether it is something they can remedy. A question of leadership . . They created the cap, as is. It does need to be given some time to put through the new plan. The traditional area of expertise, he cannot exist it adjusted, there may be. Well have to see what the plans are. His is not something thank you very much, indeed. The analyst from bloomberg industries. Lets stick with the banks. The First Quarter results today. Saidbeat estimates and that they need a special payout for investors. Manus cranny joins us now from zurich. It is about numbers and strategy. Is about strategy and patience. A special reward and capital return. . 25 is the special holding. They have broken through on the buffers of capital. They are going to a bigger reduction in weighted assets and the profits. They reduce the assets and i think when you look at the , the expensesk are rising at the Investment Bank asset management. When it comes to moving away, 10,000 job cuts and it is all about the quality of cost cuts at the bank. Count is a proxy of cost initiatives. The most exhausting is be ready the headcount reduction. Targets inieved our cost reductions in the last with 42. 1 we continue billion to reduce cost rates. Time that the Banking Industry moves away from cheerleading with job cuts and talking about cutting costs in different ways. An interesting message for the shareholders today. Costcutting has been an issue. They have been a big feature and the other is a massive fine. Lets talk about Credit Suisse. For u. S. Citizens who avoid paying taxes. A heinous crime with the irs. It could cost Credit Suisse 1 billion. And is aprosecutors critical issue. They created a special entity. They are talking about ring putting the 1040 in twoaccounts International Advisors and that is what i understand is a protection mechanism for the rest of the bank. Done for Credit Suisse is the entity that will carry the police and where the 1 billion will be leveled against. That is higher than ubs. Back to you guys. Thank you so much for the very latest. The french president says that ge cost bid is not sufficient. Earlier, they said they welcome the input from the french government and the improvements. This for me. Nslate it is always a challenge with the french government, particularly given that, last week, it seemed that Francois Hollande was declining to intervene. We have seen a rather coordinated message and hollande. He said that they would like to see the been improved. It is hard to understand what improved means. When you hear improved from the market perspective, you think of more money and that is not what the french government is after. They seem to be confirmed about the possibility that ge could transfer the cash. So, they are trying to ensure the best outcome for france here. Down note shares are too much. A little bit. The market is a little bit jittery about political interference here. They kind of backed off. It depends on how the Company Positions or if they want to get influence or not by the french government. Whats that is right. That is a distinction. A lot of companies and the french government retained a big stake. The french government has no direct stake. Out 10 yearshem ago when the company was on the verge of bankruptcy and when you are on in the business of making trains and power equipment. The government is an important function. It is a delicate dance for them. Thatare a private company will do what they feel is best for their shareholders. They cannot ignore what the government is saying. They get out. How is that being affected by government . A comparing contrast that you can do between the u. K. And france for another day. We saw over the weekend, ed baller band miller and and the business secretary say this is not a bit in the interest of the u. K. And stronger is the much on jobs, in particular. David cameron has not been opposed to this transaction and the government has been careful to make clear that they have certain red lines around research and development, and limit, and the u. K. Government cannot stop this deal. There is no mechanism to stop it. It is a heavily regulated industry. If youre sitting in new york, you do not want to go toe to toe with the u. K. Government in an industry like pharma. Getting a tacit sign off from David Cameron is essential in this deal. A strongly worded letter on the subject in the newspapers this morning in the u. K. Climb. Up, the casualties we will bring you the latest on the crisis in the ukraine. We have a global strategist. Welcome back. The fighting in the ukraine has intensified. Special Security Forces have all ofn to the black sea city odessa. Lets go to ryan chilcote. To give you a sense of the geographic part of this conflict , we start in the south of the ukraine. The gateway to the black sea and the Third Largest city. Sent athe Government Special forces unit to odessa after the Police Station was stormed on sunday and the tragic fire and clashes on friday. They say that they have a new police chief for odessa and for the region. Iev, a place that has been on theince the events square, the interior minister is setting up checkpoints this friday when the ukraine will celebrate victory day. Take a look at the border right here. They share a 700 mile long border with ukraine. The closest point is from odessa. They announced to the they are putting their troops at high alert and the turmoil creeps into moldova. All of that is pretty far from where the actual fighting has been in the last 24 hours. The places this morning where the airport has been closed for 24 hours. The airportl that was floating crimea, as well. The fighting has been in a city that is not big but, has seen heavy fighting. Big, but has seen heavy fighting. Killed at least 30 separate this. An important place to keep an eye on and, increasingly, what were seeing is civilian casualties. Is that the eastern part of the country could be alienated from the central government. Two things to watch. The regions that are set to hold referendums where they will ask the people if they want to secede from the ukraine, despite the fact that there is fighting in the regions. They plan on Going Forward with the referendums. Thank you for bringing us up to speed with what we need to know about the situation in the ukraine. Lets get some more insight on the situation. Kit juckes is a strategist. Good morning. People are worried about the situation in europe and ukraine. They are not in the currency markets. Politicalaine is a itsis and catastrophe and is, apart from being bad news for the russian economy, it is worse for the ukrainian economy. A good reason not to be long on the ruble for as long as you can see. Ofot of natural buyers currencies are shorting the euro. It is not clear how that plays out for the eurodollar. It is not clear how anything plays out. Are we brushing it off . If we have to ratchet up sanctions or retaliate, it could spiral out of control quickly. We should not write it off. It is right to say that the biggest problem is for the russian economy. I think that they could come back and have more problems in poland, for example. The european gateway. There is little growth, anyways. Anything to drive in growth is going to be a further reason for Interest Rates to go lower for longer and for us to be week for even longer. Thursday, what do we hear from mario draghi . Programs andarket assets. It is much easier for mr. Draghi to do something dramatic if we have inflation deflation. I do not think we will see anything on thursday that sends the euro down or the market packing. Were to doyou something, he does not have the schools to play around with the euro dollar. Is that right . Fromamatic gestures specific intervention and foreigncurrency debt undermines our currency. All that sounds lovely. He does not have the mandate. The euro rally for the last years has been driven by money returning to European Equity markets. One dictated using is not going to make spanishitalian debt or european debt stocks less attractive. It could be pretty good for the euro. How much higher does the british pound go . It is being supported by bond yields that we know about. The best thing would be for the Financial Committee of the bank of england to push back the rate hike and expectations. We will see what they say this week. Thank you so much for joining us today. We are back in a couple of minutes. Good morning. Welcome. Shopping from your twitter feed is just around your corner. Amazon and twitter asked for people to put their wishes into their shopping baskets. Hans nichols, how does it work . It is impulse buying. What is meant to do is buy something or put something in your cart. It lowers a transition cost. From you deciding something and getting your credit card number out and paying for it. Andsee something you like later, when you checkout, you can decide if you want to purchase it. If youre amazon cart looks like mine, you put more things in there than you checkout. Paying anything and twitter is not getting anything. The ability for you to go to their advertisers and saying that people will buy easier on twitter and you should advertise with us. Francine, is a great story and it is quite trained to tragic. Amazon has been quite reluctant to go to social media. What was the hold up . Have they changed their mind . He wanted to safeguard his data that he has and it appears that he is willing to sell a tle bit of the data to get not sell the data, part with the to have people do impulse buying. A quick question for you, when you go shopping, do you use the shopping basket . Do you use a shopping cart . Both. It is a shopping cart. It implies that the americans spend more. They have a cart. Europeanstyle. Ok. Lets see how european markets are trading, jonathan ferro. Thank you. Lets have that story. The dax is down and the cac is down. The ftse has been lower this morning. Fx,ou are looking at the 139. 17. Better than expected. The antiand Services Data is better than expected. We are seeing a sizable move flying out. You are seeing the pound coming through. 169. 32. We have not seen levels like this since august 2009. The pound is pushing higher and higher. Informants time, we are looking for 57. 8. It is massive because it makes up three quarters of the u. K. Economy. We will have the first rate hike in the next six months or 12 months. Think you. Jonathan ferro with the latest on the market. Coming up, beating estimates. We are live with the chief Financial Officer. First on bloomberg. Make sure you tune in. Follow guy johnson and me on twitter. We are back in just a couple of minutes. Welcome back. We are live from bloombergs headquarters in london. I am guy johnson. Eric holder says that no company is too big to jail. In aholder may be comments web address as the prosecutors came closer to bringing up charges against Credit Suisse. It is possible to sanction companies that have broken the law, no matter their size. The eu will ask turkey to reduce the current account deficit. To a according attained by bloomberg news. They have stagnated since 2005. One 35thn has made it through the way of the checklist. A long way to go. Cashing in on the recovery. There are reports that the estimates. A maker of car parts. We are joined by wolfgang in hannover germany. Mr. Shafer, great to have you on the program. Are pretty much in your favor. How confident are you that you will be better than the market in general and your peers this year . What you need to do to be sure . Well, actually, i think we have proven that we can outperform the markets. If i take that the exchange rate, we were growing around eight percent and we outperform the markets again. Way, what do we have to do . We had done it already and we markets. Ntrated on the they help to reduce the emission. Nd the safeties we understand and are confident that we will keep on outperforming the markets over the next time. More are you spending on r d at the moment . Maderogram that is being is amazing in certain parts of the automotive sector. How should we think about cars and r d around them . Do we need to change the way we think about your business . Well, a good question. If you look at the quota over the last two years, im talking about the automotive business that is going up and is more than eight percent now. Seen inmore than we had 2013. Thes indeed part of digitalization of the car. We have more and more Software Engineers in our company. R d costs, yes. The research is moving upward. I how much, mr. Shafer . How much do you need to spend and are you looking at acquisitions, as well . The quota we are expecting is between eight percent and nine percent. There could be some increased possible. Anare already on quite elevated level, compared to other automotive suppliers. Be iferent question would we achieve additional knowledge are or in the electronic area. Most, probably not. We are very knowledgeable in this area. We are very well in this area. Do you expect the european car markets to recover . Expecting the u. K. Market to slow down. The first was for a growth of five percent. We do not expect this to continue for the entire year. We have some numbers that will not be there anymore and the fourth order. Was not we had seen in the First Quarter. Much are you, how in russia. Russia . Are you concerned about what is happening in the is now this is not so decisive as russia overall. Sales and million less than one percent of total sales of the continental group. Effect on the growth rate of the group is quite limited. Shipper, thanks for joining us. Lets stay with the car sector. Suv sales helped offset expansion costs. Our correspondent hans nichols joins us now from berlin to get more from behind the wheel. Hans . O we need to know, we talked about the base effect with europes strong numbers. Bmw did have a strong three percent increase. You cant explain the 25 increase in china as space numbers. Clearly, that is where bmws growth is. This is their First Quarter. Theyre still in first place above audi and mercedes. When you look at the profit margins, i came in at 9. 5 . At 2. 0 9 billion. This is mostly on the strength of their suv models. You look at the x one, the x five, the x three. All of them are up. X one deliveries climbed 15 . X 3, 11 . X 4, 14 . Heres a quote for you. The bmw group has made a strong start to the current Financial Year with new record firstquarter figures. Expect a record year in 2014. We talked about it all morning. It is suv 4 x 4 story. Look at the numbers in 2009. Oft year was 30 some percent the market. In five years it will be 40 of the market. That is a remarkable story. This is where the action is. This is where growth is and it is in emerging markets. Cai, francine . Hans, we will also get fiat results later. Theyre planning to expand the prettier mullets models. Right . re all pretty, theyre going to try to revamp this brand. Were live in sydney. A street fight involving one of australias richest people. Check this out. Good morning, welcome back. Youre watching the pulse. We spent a fair amount of time talking about billionaires on this program. When it comes to brawling in streets, australia is without peer. Local media has exploded with pictures of this trillion billionaire james packer fighting in the streets. Bloomberg News Reporter dan petrie is ringside in sydney. Ok. A very good morning to you, guy. Ist we saw on the weekend news corp. Footage and that accompanying photographs. They have made spectacular viewing and reading for people here in australia, seeing australias richest man, a casino mogul. He has gone effectively toe to toe on the footpath of australias most iconic footpath with his best friend and best man at his wedding, the ceo of channel nine. Theyre still friends despite this. What happened was, mr. Packer sent a text message. A channel nine van parked outside. Mr. Kendall says that was not the case. They meant to thrash out the issue in person. Like all good australian males, he settled in age oldfashioned. That is what really brought it about. A spectacular media frenzy which soon followed. So he believe there is a camera crew trying to catch them out with miranda kerr . Been denyingrr has such things. In terms of soap opera and theater, it has been dominating everything. Of course, the fallout of this, there was no miranda kerr on sunday. It wouldve added more fuel to the fire. That he has to fall back of his board. James packer has a number of highprofile deals across asia. Greatest look to have the ceos of your Biggest Companies going toe to toe industry. They certainly need to go to boxing class. By and large, great theater. It happens in the italian theater every day. Punch ups. Boys will be boys. Dan, thanks for staying up late for us. That is what tv was made for, wasnt it . The Sportswear Company is hoping its official partnership at the world cup will turn around its fortunes. Now, wit