Leave this from the g8 deciliters from the julie leaders from the g 20 summit are heading home. The a lot of attention on the summit on Vladimir Putin. We heard tough talk from a number of his World Leaders. Tell us about it. He wouldve been expecting a cold recession even though the weather was extremely warm and the other g20 leaders did not disappoint. The first day of the summit on saturday, tony abbott, the australian Prime Minister, hosted a barbecue. Vladimir putin dying along. Alone. D the canadian Prime Minister with his hand extended a he said, i guess i will shake your hand, but i have one thing to tell you. Get out of ukraine. Littleend up leaving a early although his reasons had to do more with biology than diplomacy. This is what he had to say. It takes nine hours to fly from here and nine more hours to moscow. On monday, have to be in the office. Hours ofintreau5 sleep i need 45 hours of sleep and i went up to tony abbott and i think our work is done and successfully. No one is reading too much into his early departure. To be fair, president obama of the United States left only a couple of hours after president putin, francine. Leaders that would explain why he had to leave early. The leaders agreed on a growth target of 2. 1 by 2018. Very ambitious, is it achievable . A gulf betweenys words and deeds and these type of summits. Growth bytage points 2018. The imf and oac will be reviewing the progress and they say, yes, it is achievable, provided all of the policies we discuss over the weekend actually get implemented. That is when the hurdles begin. And the australian Prime Minister, tony abbott, was complained with the other leaders he is having troubles. Budget was presented away back in may and here we are in november and very simple things like a seven dollar charge to go and see the doctor has not been passed by the senate. Japan hasr news and fallen into recession, surprising everybody. Month, the next g20 leadership in turkey. They said they will put Economic Growth on the back burner and it will be climate change. 2018, a long coat a long way. Perhaps the growth target is achievable, francine. Would say optimist that. Paul allen covered the g20. Day p question of the what would you have said to Vladimir Putin if you had met him . Tweeted me. I know what Ryan Chilcote wouldve said. He wouldve said vodka. It comes as investors turn a Cold Shoulder on russia. 52 chose the Russia Ukraine conflict as the greatest threat according to a Bloomberg Global poll. Brian chilcote joins dutch Ryan Chilcote joins me. Will we see more sanctions . We will see more sanctions. The meeting began a few moments ago. It is a question of what kind of sanctions we will see. We were told they will be personal. An expansion of the left of individuals such as travel bans and asset freezes and specifically, we expect the eu deems connected to those november 2 elections that took place in the east of the country and people the eu deems as having a role in preparing those to the list. Will he go beyond that . Will the people within the president s inner circle . Business people . You were talking about danger from russia as something the ukrainian president has been hitting on. Where he settled right now the east of ukraine is the most dangerous place on earth and it is more of a direct dan isis more cigarette than isis and it appears to the and it is more of a threat than isis. To be economicng sanctions, will have to wait. Given the frosting perception that guzan got, would you say the crisis is getting worse . I think it is getting worse. When he is mocked by saying i do not know why the president broke his warships, yes, you know, when you have relations that acrimonious. It looks like many leaders are expected to step beyond where you can have reconciliation. In addition, we have fresh out. Matic breaking the russians announcing they kicked out a number of polish diplomats and they say it is retaliation for the polls kicking out some of their diplomats. In addition, russias added a german diplomat. The German Foreign minister arriving in russia tomorrow to contain negotiations and they will be discussed ukraine. The most important thing is some criticism right after the summit ended from the russian president directed at the ukrainian president. Cutting offhim for the east of the country financially. He made the decision in state company should pull out in the banks will not be allowed to service 3 million people. The russian president said it is it responsible. That is escalation in my eyes. Ryan chilcote with the very latest on ukraine and russia. From diplomacy to the Market Impact of the crisis. Investors see it as the greatest risk to the market. The ruble has slumped 31 against the dollar. Costa joins us. Give me a sense of how serious this is. It has been flagged as the bigs risk to investors. What does it mean from affects point of view . Are two points to highlight. Number one, this sanction rublely impacting the performance and the second point is the level. Going back to the second point, level when it comes to how we trade in general has so far been very limited. When it comes to the level of the internalization of the noise and sanctions and russia, this is putting a lot of pressure on the ruble. Bonds ruble assets, the and equities as well. Sanctions as long as stay on course, you do not need to see a stiffening of sanctions. As long as they stay on the table, you will be very difficult to see a report rebound. How concerned are you given that the ruble, in the room of politics afc wildcard, being Vladimir Putin in the real of politicsm and you have a wild card, being Vladimir Putin. Yes, absolutely. A lot of volatility. Believe that can in the kremlin can be in general , there is volatility of the actions imposed by the kremlin overtime. But in general, you have to look at things and take a step back and look at things from their perspective. Ukraine is a cushion for russia. Kremlin has a very clear mandate to keep the volatility on easter ukraine and keep the destabilizing on track in order to keep his buffer, ukraine as a buffer, between the west, nato, and russia itself. It is very difficult to believe it will back off from this agenda. We will probably [indiscernible] still a variable of fear and risk in the markets and glaring. I honestly believe after the end hashe day, the centralbank been a lot more liberal on the fx. E would probably be continuing were probably looking at a much weaker ruble from the current levels. Give me a sense of what your favorite trade this. We have the unexpected news on japan. Strength will really surprise the market in the next six months. Cycle has nots finished yet. That is the one of our report. Has further to go. We do like the dollar. Currency like the hungarian or the polish, given that we still it could ber and trading a lot lower here in a couple of months. Your perspective on what comes out of ecb in terms of the dollars, we believe the diversions between u. S. And europe will provide further room for the dollar downside. We believe in terms [indiscernible] the stories are quite different. We do not let ruble. We do not like ruble bonds. Issue these as an index layer. It should use as an index player. Turkey, which is very high yield. Onwhat about your take japan . The great financial experiment and not going as planned. He yes, a big financial experiment. The boj is giving time, the fight is still on and the dollar yen levels from the point of potential for rebound and the japanese economy that came out overnight is clearly showing to us that in the boj should be forced to do a lot more Going Forward. The only acts traction to the dollar cycle. 15 ,lieve it could go for 16 gains. Trading you will be and ofgher on the yen course, the lower yielding currencies can be the ones not in the highyield. Thank you. D of emergingea markets at citigroup. What else is on our radar. David cameron says the eurozone is teetering on a possible third recession. Will stickd the u. K. To his economic plan and it must do all it can to protect itself from a global downturn. China open the landmark trade between a home called and Shanghai Stock Exchange is and investors piled into the shares. It hit the trading by 2 00 p. M. Local time. One of chinas biggest todays so for a liberalizing its financial markets. Making close to buying a company. The deal could be announced as soon as today. It would have outlook and allergan. Ating up, a closer look activis and allergan. Well have a wide ranging conversation with a policymaker , andwas big about g20 much, much more. Stateowned. Welcome back to the pulse. Time for company news. The chairman of a company said the bank needs to wait merger scenarios of other lenders. He said no one has submitted a merger proposal so far. A gapseeking to plug uncovered by European Central bank stress test. Deal tok has reached a begin selling mobile services to its customers in britain according to people familiar with the matter. An official announcement is planned as early as this week. Sports director is looking to acquire all 50 l. A. Fitness gyms afterwards put up or so last week. According to the sunday express. The sports retailer already and50 and eggplants plans to expand to 200 sites. To one of the most contentious takeover battles, we go be close to having a winner for botox as it tries to, fight off a hostile bid. Joining us caroline hyde. A deal with activis could change everything. The fight against the wrinkles is getting bigger and bigger. 20 billion. It could be the 30s and all of m a so far this year if Activis Allergan goals for allergan. Is a white knight situation. Allergan has not wanted to be bought by the investor, bill ackman. A big corporations such as allergan hooking up and going for a target that does not want to be bought. It is not want to be taken over. The research and spending, the same argument we heard from astrazeneca at the beginning of the year. It is all about a white knight coming to the rescue and that thirdbiggest deal. Bit of flavor. It is about a rmb, thats why they are so resistant. Raise their offer . It will be the key question. They believe they could come back to the table and they were willing to of their bid. Many feel they can afford the extra. Leveraged. Very what it tends to do is use is useful tax structure. It is very minimal. Up andtends to be itself stop spending on are in the. D. Stop spending on r ackman,a plan b, bill an a tune of 18 billion in investment. It would be to beef up once more. It will be ackman and corporate working together and this team and they seem to have going. , thees if we hear the deal team that works well for actavis and allergan, Going Forward, pick reduce the cost and would be a much more stable environment. Carolina, thank you so much. Theres a lot of m a news especially in pharmaceutical. This is what i want to tell you about. Buyingnnouncing it is the valve merck drug rights. It will cost about 650 million. It is once again a fight to get into oncology. The german companys move to get inore oncology and the u. S. , terms of the agreement have financial, pfizer would pay as much as 2 billion to merck. It is one of the first of the deals. If it goes through, we they will pay extra. Andill have the ceo with us around 10 minutes. Do not mess with a great interview. Coming up, the long call. Long haul. Love could boost the economy by 300 Million Pounds a year. We will talk to the author very shortly. Though russian market is down 20 this year. We will not sierra recovery next year. What is hurting us is the situation with russia. Russias one of our biggest markets. For now, we see big headwinds. Of course, everything has really been [indiscernible] in europe. Them. Try to stay close to the commitment with regard to our country. Ceosat was european talking about the impact of the Russia Ukraine crisis and what to do and had have had on their businesses. Investors have voter russia as the biggest threat to global security. Lets check in with the markets. Our markets editor Jonathan Ferro has the latest. I got a promotion. It is great. I will get a downgrade once manus cranny is here. You have the ipaq down by toomer. 6 . The ftse down by 1 . Have the ipaq down by 1. 6 . Back in recession. Follows by aike recession. The nikkei is down by 3 . At 116. En stays Prime MinisterDavid Cameron warning of another Global Economic downturn. In sterling, of particular interest. We are near 12 month lows. Down the down by 0. 3 . Hsbc pushed back their first fortune brands hike here in the u. K. For the First Quarter from the First Quarter of 2015. What happened to the race to be the first centralbank at everybody is pushing back. To why so much. The very latest on the markets. Thank you so much. Japan sinks and to recession. The fourth. We look at the political consequences of from mr. Shinzo abe. We have a great interview with the ceo of merck after pfizer is buying mercks cancer drug rights for 800 million. That interview is after the short break. Welcome back to the pulse. I am francine lacqua. The british Prime MinisterDavid Cameron has warned instability in europe presents a risk to the u. K. Economy. Cameron said that eurozone is teetering on the brink of a recession and britain would continue to use the Monetary Policy to support Growth Without adding to borrowing or data. President barack obama has called the beheading of aid afct eter kassig, an act of pure evil. Heres the sixth that he is a the sixth foreign if this is for there to be beheaded by isis. Six heis a these sixth foreigner to be beheaded by isis. The nikkei closed down almost 3 on the news. , lets walkt japan on the economy editor for japan bloomberg. Does it mean for im a nymex . Four abenomics . Advisers said it was a body blow for abenomics. The sales tax increase has to be postponed and he is back in japan for the g20 australia and have a press Conference Tomorrow and well talk about what will happen with sales tax. The heat and humidity will want to go to the people with his policy. To go to thets people with his policy. Data, it means that the sales tax increase from next year, for next year will not happen. How is the economy looking for the Third Quarter . Quarter, it third fell into a recession and what would seem for the fourth quarter. Japanese companies are in a strong position. They have massive profits. And the Third Quarter, they had the massive profits, the highs and have ever had. Bigger than the economy of canada. If they do see a pickup in consumption and consumers are going to go out there and spend, companies are wellpositioned to increase wages. But, so far theres not been any sign of it happening. To why so much. Ames mayger thank you so much. Wrote the definitive book on japans economic crisis in the 1990s and is the president of an institute. Yunnan want to miss that very important interview coming up. One of our top stories. Merck kgaa is one of the biggest movers on the stoxx 600. Agreed to pay 800 million for the rights of a cancer drug being developed. Us on thefor joining phone. Why were you seeking a partner for this medicine . Partnerships good morning, first, to all of you. Earlier that we would develop a pipeline and partnerships wherever it makes is a line of partnerships we have done in earlier stages and it is important and size and numbers and everything up to now. Pfizer is a top company and great oncology presence, created oncology. It is not only about risk here but a knowledge sharing and getting a new platform for the patients as fast as possible to the market. What pfizer brings that you cannot achieve on your own, is extra knowledge or two heads were better than one . It is both. Pfizer brings knowledge in some areas in oncology we are making the necessary competence. And the other way around. One has a huge opportunity and many indications as some has the competence and others not. The same applies to countries and very strong and development and others are good. It is both. Teaming and putting the financials together. 850hat we do with the Million Dollars in cash you will receive from the deal . As you may know, we have announced the intent to acquire a life science business over the next years. The priority will be leveraging. Focus ont change the the biotech business . Atno, it does not change all. We are working in three business areas. Life science business and health care business. Tore are enough resources grow with all three business areas so there is no change in focus. Youre strongay focus is really Cancer Treatment . Three, two of the three areas where we focus on innovation as oncology. Areas. One of the we focus and we have build expertise and products in the market. Outside of the u. S. And we have 2 promising compounds and later stage development. One being part of the pfizer deal. Sense of howe a much consolidation you still expect within your industry. We talk about consolidation and m a day in and day out. How far can it go and what play will merck play in all of this . Remain on ouro own. Us as a bite consolidator in the game. We believe as long as we managed to get innovation and to your business. You remain attractive as a partner for an event the players. Mark does not play part of the team. A merck kgaa does not play part of the team. How far can it go . It is difficult to test from the outside. I believe it is the big players with a Huge Development and marketing capabilities and there is room for the smaller players as long as the big players innovate