U. S. Company haspira and this could avoid another u. S. Tax aversion. Youre watching Worldwide Exchange. Bringing you Business News from around the globe. Welcome to todays Worldwide Exchange. Nissans First Quarter profits beat on the back of strong u. S. Sales. We cross to tokyo for all the details plus get full details from comiccon as superheroes assemble to showcase this years biggest blockbusters. And the tech sector is the large nest the s p 500, but some elements performing more poorly than the headlines suggest. Well be talking technicals a little bit later on in the show. A a slow start for the stocks this morning. The red and green taking the stoxx 600 down. 10 . A quick look at the market this is monday morning, the ftse 100 is relatively lower, the French Market is slightly higher, and the micex in russia is lower by. 80 . Sentiment on friday dipped on the talk to see a step up to tier three sanctions as early as tomorrow, so investors will continue to watch this over the next 24 hours. Obviously, right now, as you can see keeping the russian market under water. Well look at the top movers. Haspiro could be in a deal worth about 5 billion. This is according to the wall street journal. A deal would make the u. S. Based fapharmaceutical and Delivery Company to be the latest in the tax aversion deal. They are higher by 1. 2 . Well talk through the details of that shortly in the show. Rsa group could be set for hundreds of millions of pounds of writedowns with devon hester speaking with sundays telegraph to decline to put a value on the writedown but said making tough, Strategic Decisions could allow them to recover fully within three years. Well check that to make sure that stock is performing properly. We are just shy of a half a percent. They have raised the possibility of a future breakup of the group with farreached reforms for the top drugmaker. Andrew witty said they have the option to spin up the consumer business but said there are no such plans in the near term. Thats a new story on that one. Well wait to talk through the details on that. Rosneft is lower by. 25 . They have been trading lower after the newspaper reported moscow must pay 50 billion for extrorpuating the assets of the defunct producer youkas. The low cost carrier upped its Profit Guidance to between 620 and 650 Million Euros in the year march 2015. You can see right now ryanair is up just shy of 4 . Tnt express is down 5. 5 . The restructuring process has improved results for them in the fourth quarter. A they say the outlook strategy is on track reducing 330 Million Euros in loss for the quarter. The Company Proposed the firarm suit calls to have a separate listing. You can see banka is up to 432 Million Euros. That set the net interest for lende lenders up 31 on a year ago. Well have a look at the Foreign Exchange markets with the dollar expected to remain right now with the dollar index at sixmonth highs with plenty of data to come for gdp and the second quarter. We have the fed and the payroll. A lot to focus on. Euro dollar trading at 134. 33 right now. Its taking up previous lows at 1. 3433. We have germany to watch for right now. We are seeing the rally in dollar yen losing ground near the 102 level. We have to expect that to continue right now. Certainly right now, 1. 6975. Eight successive down days for that currency pair, in particular. The dutch Prime Minister mark reuter has ruled out securing the site of mh17. This has violence over the weekend prevented inspectors from assessing the area ch. They have many heavily military men along the border. Not even if we opt for a military deployment, even then achieving military achievement is not realistic. This proves russias military involvement in ukraine. The Russian Forces are rocket launching into the eastern part of the country. Some of the selfpropelled photos are only found in Russian Military units. This comes as the Russian Foreign ministry Sergey Lavrov says the u. S. Sanctions will not achieve their goal. The eu is expected to unveil a raft of wider economic sanctions as early as tuesday including plans to restrict russias access to European Capital markets as well as the arms embargo. Joining me is Gabriel Stine at oxford exmommics. Thank you for joining me this morning. Is this what we are going to get in the announcement tomorrow . If youre asking, are we going to get sanctions to stop russia from supporting the rebels in ukraine and contribute to a peaceful solution . No, i dont think so, not in the slightest. And thats partly because the motivation for russia is not driven by economics. If it were driven by economics, why would they bother with ukraine, in particular. This is power politics restoring the russian empire. So i doubt very much if we will do anything that will actually lead to russia seizing its support of the rebels, sadly. This is about a power play. It is interesting to see comments from over the weekend to say that theres now increasing tension between some of the oligarchs and Vladimir Putin. Them putting pressure on him right now with economics over the politics. Does this make a difference . I dont think so. Because if you compare russia with ukraine or russia to putin to russia to yeltsin, the oligarchs ran the country. Broadly speaking, we have the slight power that will be brought abroad. They are told what to do with him and his circle. As you just mentioned there, what could make putin break ties with the separatists . Ive been asking this question for two weeks now. I honestly dont know. Possibly a situation where the Ukrainian Army completely cuts the separatists off from any supplies from russia. Completely secures the borders, secures rail, road and air space. And then putin would have to choose between an open attack that is nondeniable or we have evidence now that hes prone to evidence of the launching rocket in ukraine and he denies that. You believe it and i believe it, but he thinks he can get away with denying it. I think what would stop him is if the choice is open war or not. And that might be a step too far, but on the other hand, i never thought he would go as far as he has. One more question if were talking about sanctions tomorrow. The mystery sanctions are always a problem here, are we missing the point . Well, you will always have an economic tie, and should they be included . Yes, they should, but what business does britain or france have in selling arms to russia. Whatever scenario you can think of during your geopolitical terms will always be arrival at the very best. Last week i was speaking to someone who called it capital lockout. It kind of simplifies it but makes a strong point. That would be a very good idea. On the same subject, well bring you the latest of stakeholders in the russian giant that wop their 100 billion case over the m misproneryuation of the assets. They will see separation of around 50 billion. Tim osborne is joining us to discuss the details and what is next as far as that is concerned at 11 40 cet. Some said what happened there was they were politically motivated there as well, gabriel. It looks like the west is ganging up, to a sense, on russia. Where was this court case . In the hague. In the hague. Okay. What if the russians say, all right, youve had your case, we are still not paying. I honestly dont know. Again, its a but i have great difficulty seeing the russian government with sanctions, stomping out 50 billion to shareholders. Gabriel, thank you for staying with us. Israel ended the humanitarian ceasefire in gaza fighting incessant rocket fire from hamas. The u. N. Called for an extension ahead of the eu period. The statement from the military sources says it is to currently stop the tax on gaza and calls the halt on fire limited instead focusing on Tunnel Networks. The death toll in the crisis has spiked to 1,000 palestinians and 46 israelis. Benjamin netanyahu took to u. S. Talk shows on sunday defending his action saying he is taking all the necessary steps to eliminate threat. First of all, i think like every israelly, looking at these casualties, nobody is happy. Everybody regets to see a single civilian death. A single civilian death is something we duply regret, but it is not our responsibility. Ive always been in combat and been to war. And i know what efforts the israeli army takes to minimize civilian casualties and direct the terrorists. The United States has been une quif equivical and that support is necessary. If hamas comes out winning the propaganda war but it shows that we received a lot of goodies, i think that piece will be very hard pressed. It will be hard to move peace forward. If hamas is demilitarized, that opens up the path for peace. Something that israel and the u. S. Wants. Do you believe theres actually a military solution to israel hamas problem . I think that we have to make a decision between the palestinian israeli conflict with those who are willing to go this way and there we can have a real solution. And any kind of political solution with hamas, hamas is a Terror Organization committed to our destruction. Supported bin laden and condemned you for taking good action against bin laden. You want to eradicate the state of israel. You dont have a deal with them. Hadley is joining us this morning now with more on this. Criticism that john kerry has lost the confidence with the israelis in this. Do we need someone else . I think certainly the United States is stretched. I dont know if they have the bandwidth to deal with everything happening in the middle east. The crisis in iraq. We have what is happening in libyan and we have not begun to look at in terms of what has to be done. They have what is happening on the bigger stage with russia and ukraine. Fortunately, they are stressed but they didnt deter kerry from trying to come to some sort of agreement with hamas, with israel, but of course hamas, having to deal with qatar and turkey is raising red flags with palestinian authority. Thats not going to make everyone in the west bank very happy. And the israelis are criticizing john kerry for saying hes cowtoeing hamas. So a little bit of a blunder nor the u. S. In dealing with the middle east crisis. It is likely this conflict will add in the coming weeks and hamas is likely to engage in the war given the idea it is better equipped. Have you changed your view at this same . You mean you were on then, mr. Stein, how would you like explain that . I am surprised it turned into a ground invasion. Hamas cannot i mean, what are hamas aims . They cannot defeat ilz real, so their aims are to defeat the political organization. And if necessary, hamas is also happy if arabs are killed because it makes for good copy. So from their perspective, escalating makes sense as long as they dont believe they are going to be completely destroyed. It doesnt make sense unless you are prepared to proceed with a brutality that i think today would be unacceptable and not really work. However, i think much more importantly because, really, my role here is to discuss economics and not politics, from the Economic Perspective it doesnt really matter. From a political perspective, this is one of the least significant conflicts in the middle east. You have iraq, you have syria, you have libya, each of which is bloody and costs terrible on a daily basis. Economically, this conflict for israel and ga da and the rest of the world, in terms of the rest of the world. If we look at what happened in 2008 and 2009 with the International Ve response there, it was far more aggressive and has been falling this time of the round. Theres always other distractions . Theres always other distractions and we were also seeing the amount of merchants and organizations like isis in iraq and so on, which perhaps makes International Observers and commentators and politicians somewhat more weary of taking and believing in the purity of motives of an italian movie like hamas. Quickly, this is just speaking to the water picture here with games. Specifically, we have found a bigger problem. And then they had to remain their focus on is there for the fear future. Thank you, gabriel stein. As i sit there, we have to take a quick break. But still to come on the show, investors are finding a way to bank earnings. Well look at the more troubled financial institutions. The next guest says to bring back the crystal ball. Find out why after the break. Stay with us. I voted for culture. With a k. how are you . I voted for plausible deniability. I didnt kill her, david. And i voted for decisive military action. America, you cast your votes. Now, go to xfinity on demand and select the peoples hotlist to see this summers top 100 shows and movies. I voted mcdonalds is taking more meat issues off their menu after a safety scare and investigation into its management. The press conference was held a few minutes ago, eunice, what more did we learn . So far they have unveiled the initial findings of the ongoing internal investigation. And what they found is that the china operations did fall short of their standards. And because of that, they have announced a wideranging and widesweeping change at their china operation. They said they plan to add more managers to oversee the operations. They also said they are going to be unrolling a Food Safety Education Program over the next three years to cost them about 1. 6 million. And finally, they are going to have a full review of all of their factories here in china to make sure that the standards didnt slip at other places. This is creating a lot of uncertainty for mcdonalds young brands that owns kfc, also burger king and starbucks. And because of that disruption, a lot of them either cut ties with the supplier altogether or suspended the sale of this meat at their restaurants. Mcdonalds said the decision to suspend all the osi meat at their restaurants has suspended sales. It will be hardpressed to see a big mac or chicken mcnuggets. The company says the disruption will last about a week. Julia . Thank you, eunice. The next guest takes ma mathematical risks. And he says its time to bring back the crystal ball. Tim, the crystal ball is more active than Everything Else . Well, it probably isnt but it just might as well be because this is the theme that is worgt discu discussing. Economics is remodeling itself. Well rebuild models if you like. They were wrong and didnt work. Most of the big theories are left hanging in the area, he will try something, but mine is pretty rubbish so dont use mine. Im sure yours is reliable in getting home, but we do need to think about how markets react to data, how we interpret the data and how we go forward. We have banks in europe this week, if we look pack to what we got at the the u. S. Bank, we are looking at regulation come plips. The scandals and the social ek noums of it rather than business. Is regulation going doing half or a little more. It is about discussing what is going on, is it right, is it wrong . Thats not so easy. I think it is for all of us to judge as a society. I think we need a lot more screen of what is being done. But she said consistently while my parents are here, i dont know how to make it up. This is them wanting to exit this trade. Well, this is something we all need to worry about with the ica, the International Capital association, we want to know where is liquidity. Can we measure it . Is there any . Because a lot of it is fake liquidity. We are watching funds from the central banks. We have seen extraordinary contraction across government and risk markets. Look at bank paper. Look at the difference shl between the covet bonds and the seniors. All of this is the artificial squeeze. When the markets turn, at some point they will, what happens is theres nowhere to go. We are missing the shock absorbers in the market that we used to have in abut dance back in the days of fixed income. What about regionalization as well as globalization. Banks are more concerned about the capital they employ in different areas. And thats a restriction, too. This is called the organization of banking. We were talking, and ive been in the business three decades, and we saw the rise of global. Everything had to be global. If we didnt have global in your job cycle, you were nothing. Global head of something or other. These days you are probably better off being the regional head of something because thats where the industry appears to be going. This may be a good thing, but side effects as well. Who is doing the lending, who is doing the borrowing, where is the capital located . Tie it down, who is best placed as far as the banks are concerned, who is benefiting the most . In one sense, you have to look at the u. S. The u. S. Has had a dramatic aboutturn. They repaired their Banking Industry extremely quickly. And they have launched it again. The american banks are doing pretty well right now in most of the Investment Banking niches, but dont write off europe yet as we are adjusting to this. The businesses are trying to understand and the process has not finished. In the u. S. We got over quickly, in europe we are still working on it. If you look at the discussion on leverage ratio, we are not to tend of that debate yet. Thats to be continued. Thank you very much, very important point. Work in progress. Tim, great to talk to you this morning. Now still to come on the show, looking at the medical nutrition unit. Well take a closer look at this story right after the break. The cadillac summer collection is here. During the cadillac summers best event, lease this 2014 ats for around 299 a month and make this the summer of style. Youre watching Worldwide Exchange bringing you Business News from around the globe. Welcome back to