Today. We had some substantial moves in fx. Janet yellen, she has moved markets. It is still a big focus for equity markets as well. Lets get a first look. Futures shrugging off those geopolitical concerns. They are isolated on russia at the moment. The ftse 100 up about 0. 1 . The dax pretty much dead flat. Boring on the equity benchmarks in europe. China confirms what we already knew. A slowdown in china. The currency having its worst week in 20 years. That is what everybody is talking about. Euro dollar, 1. 3768. Look at this. Euro is having its worst week since january. Down 1 against the dollar. Nothing to do with the ecb. They may well be very thankful for Janet Yellens words. Was it a slip . Did she mean to say that a considerable amount of time means six months after qe ends . Four fed speakers look out for every single word they say. That is their opportunity to backtrack from Janet Yellens words. That is your number one focus today. Thank you so much, Jonathan Ferro with the latest on the markets. The u. S. And eu tightened sanctions on president vladimir couldnt Vladimir Putin. European leaders are in brussels for a second day of meetings. Ryan chilcote is on the ground. Lets run through some of the sanction targets. Sanctions target individuals and they include some interesting personalities. , theyllionaire brothers are both friends of Vladimir Putin. About 7recipients of billion worth of sochi contracts. Not the only ones on the list. Gennady timchenko was an owner of gunvor, that swiss oil trader that has been talked about. They had as much as 92 billion in revenue. He has sold his stake over the last couple of days. He is also a friend of president putin. Really interesting, the u. S. Alleging that Vladimir Putin himself has a financial interest in gunvor. The kremlin denying that flatly. Also, your he yuri k ovalchuk, one of the owners of russias largest bank with about 10 billion worth of assets. He is on the list. The United States described him as the cashier of kremlin leaders. Another interesting allegation. Finally, the head of the state controlled russian railways, one of the Largest Railway Networks in the world. Targeted, subject to these acid freezes and travel bans. Thank you so much for all of that, ryan chilcote. We just saw live pictures of some of the leaders coming in. We will keep you uptodate on any developments on whether they may give some statements to the press as they get into the Council Meeting building. Our next guest says investors should take advantage of uncertainty and diverse supply away from perceived safe havens. Alex friedman joins us to discuss his monthly newsletter. He oversees 2 trillion in invested assets. Great to speak to you. Talk to me about your monthly letter. It says investing through uncertainty. When you look at what is happening now it is russia, ukraine and possible counter sanctions. How do you navigate that . Great to see you, thanks for having me. The normal reaction when there is uncertainty is to go to safe havens. Gone up, franc has japanese yen has gone up, gold has gone up. I would start by saying you have to ask yourself is this the beginning of a much bigger issue that russia will drive . If so, that is one calculus. If not, then probably the safe haven flows will reverse. You would not want to be positioned that way. You want to take advantage of what you think are the underlying trends driving the global economy, starting with the recovery in the United States. What is your take . It is very difficult to understand how much this can escalate, at what point sanctions really start to bite. If you are invested in russia, is now a good time to get out . ,f you are invested in gas something that can represent further buying opportunities . It is hard to know what is going on in russia. It gives a lot of us pause to think that we are about 100 years from the start of world war i which seemed inconceivable at the time. Everyone was so intertwined. When i look at the arguments about why arguments why tensions in russia will stop, they start with the point that it is not in anyones interest. Not in europes interest, russias interest and the united as interest United States interest. The first point is it shouldnt happen. The second point is, the actors wont all the rational. You need to step back and say, and i properly diverse supply . Do i invest where i think there is the best case for seeing fundamentals drive the story . You say that investors should take advantage of recent uncertainty. What is your favorite take over the next couple quarters . I would be short the yen. I think there will be monetary easing again. The other two arrows of the eighth government the abe government have not succeeded. I would be sure the swiss franc. I would take advantage of the United States continued recovery. Long u. S. Equities, long corporate bonds. I think the eurozone will continue to recover. Chinese equities are reasonably attractive. Is, arehe big question emerging markets getting lumped together with russia and china . There are basically three emerging markets that look attractive. China, mexico and korea. Both china and mexico are undertaking the right reforms. Korea is leveraged to recovery in the United States. Alex, thank you so much. We will be talking more about chinese equities and china in general next. Here is a look at what else is coming up. Is raisingairbnb money that could value it at 10 billion. Russian stocks are taking a beating. We delve deeper into that next. I am Francine Lacqua in london. This is on the move on Bloomberg Television and radio. With us is alex friedman, global chief Investment Officer for ubs wealth management. Thank you for sticking around. We were talking about how you are suggesting some of your clients invest through uncertainty. You are saying maybe your favorite play maybe in the u. S. You also mentioned some chinese equities. What is your play on china . We are at a crossroads where we are trying to figure out what this corporate default means for the country. The first thing we have to figure out is, china is slowing in some surprising ways. Butth may come down a bit we think it is not the hard landing. China is engaged in the proverbial handoff on state control to what adam smith would call the invisible hand of the market. That is a good thing. The fundamental is that there is a set of reforms underway which should be good for certain industries. Financials and energy should benefit. Now might not be a bad time to look at it given the uncertainty around the region. Into thatuld you buy country . Do you buy also possible companies that are based in europe but with a lot of exposure to china . You can certainly do that. That has been historically a nice way to invest in china. I would break it down into two categories. One would be on the currency side. People ask a lot of questions on it recently. The other would be the equity side. On the currency side, the won has come under pressure. It is moving towards a freefloating dynamic. That should allow for appreciation of the currency. China runs a current account surplus. If you look at the demographics in china, china needs a stronger currency. Foreeds more wealth supporting elderly parents. On the equities side, take a step back and ask what you need for emerging markets to be a positive story on equities. You need the three rs. Reasonable violation, reforms and resilience. China potentially has all three in place. The reforms side, the industries i find attractive are financials and energy companies. Is why worldwide youre talking about russia before. Is this one of your favorite plays . Russia . No, just energy. Energy is a super complicated story. I generally think commodities are not a great place to the invested. You are going to see a lot of volatility without the best returns. In terms of emerging markets, there is a big discount right now. It is about . 30 to 30 to the developed markets. There are values to be found. I do like china, mexico and korea. Russia, i would be neutral on. Longerterm, the discount might be attractive. Talk to me about tech. We had this valuation of fortnum yesterday valuation of airbnb yesterday. We heard valuations of alibaba. The market in the tech world seems crazy. Said to notple have be in that space. How do you deal with that as a chief Investment Officer . How should investors look at that technology craziness . Everyone i know is asking why they dont work in tech right now. Through the noise, what you have , the socials, yes Media Companies are getting a lot of attention. They have to earn those valuations over time. The fundamental tech sector is about 30 exposed to the consumer and 70 exposed to the business world. That should translate directly into better results for tech companies. Tech is a leveraged play on the recovery we see in the developed world. I am very positive about it. 2 billion to 3 billion new people are going to be exposed to the internet through mobile media. That is a huge productivity increase in the global economy. You get into tech . Do you buy these big names or try to find the Smaller Companies that may be the support for the big names that are getting the valuations . I would start by differentiating between consumer oriented tech and business oriented tech. That timmy me is more attractive, the latter. I am betting on a capex recovery. That is driving not so much the social media dynamic as the restocking for companies, some of the more fundamental plumbing that goes into how they work on the tech side. This week was pretty much dominated by ukraine and russia and also what janet yellen said. What do you think of her comments . Are rates going to rise quicker than we thought . It is funny, i was talking to a former central banker about a week ago. He said there is a playbook. Whenever a new central banker comes in, the first thing they have to do is explain that they have their credentials on making sure inflation doesnt get out of control. That is a little bit of what we saw from yellen. I wouldnt read too much into it. Her comment was probably a bit of a fumble on her part. Is, we at theying Federal Reserve are concerned that unemployment may be more structural as opposed to cyclical. Therefore inflation may come quicker than we thought. We are going to look at a lot of factors as we move away from forward guidance. I think we still see the taper continue. It finishes at the end of 14. We start to see rates normalize. It probably takes another year or two after that to normalize. Are not necessarily looking at a higher dollar this year. I think that is right. If i am going to bet on something, i would bet on a higher dollar. I think that is a longerterm trend. What does that mean for the euro . A lot of these european exports have been hurt. A lot of the companies we report on are now saying, we werent expecting such a weak dollar. That has really hurt us. Does europe come next in getting a little bit of a break is to mark will the euro go down a bit of a break . Will the euro go down a touch . Yes, that is the position we are investing. We think the dollar goes up, the euro goes down. Swiss franc goes down as well. For europe, a weaker euro is a good thing. A goodnse, i cant get answer from central bankers on why the euro is as young as it is. No one seems to understand it. I have a fair amount of confidence that the dollar is going to rise and the euro fall. What is your favorite play in the u. S. And europe . You mentioned u. S. Equities. What would you be buying right now . Technology,s, companies exposed to a business spending pickup. I like the midmarket segment that is focused purely on the u. S. Market. I think the dollar is going to appreciate. U. S. High yield and Corporate Credit will do well. Like levered loans. I like european equities. I dont so much like the u. K. Story, no offense. Only because the pound is putting so much pressure on foreign exports for u. K. Companies. I would belong the pound but short the london market. U. K. Equities . What isttle bit your take on u. K. Equities . We are a little bit of a productivity puzzle. The high pound is putting pressure on the bank of england, the economy. The economy is not doing badly at all . The economy is doing great. If the pound is going to keep going up, the problem is that most of the big u. K. Companies sell goods outside of the u. K. That puts a big drag on their earnings. I would be cautious on the u. K. Thank you so much. Always gary to have you on the program. Coming up on the program, airbnb s valuation sores following a new round of financing. Is it really worth it . We will check into the start up that is disrupting the hotel market after the break. Welcome back to on the move. I am Francine Lacqua here in london. Here are some companies on the move. Jumping the most in more than five years in hong kong trading, this after the company said it would spin off the business they cut of profits that beat estimates. Opens you pro says it is to partnerships in mobile deals. The beijingbased video website has been cited as a possible target for tencent and alibaba. s ceo says it is open to strategic options. Must figure she con masayoshi ms. Alibaba ipo fees. Softbank won out over a bit and acquired sprint. Has helpedrbnb millions of people find spare couches, rooms and homes to rent. To raise new capital that could value it at more than 10 billion. Caroline hyde has been digging into what airbnb is really worth. First of all, tell us a little bit about the business model. This has read like wildfire. It is six years old and they are in 34,000 cities. Almost 200 countries. You can hire an apartment, you can rent just a room, just a sofa to stay on. They take a little chunk of money from those that are putting those rooms on the website and those that rent the premises. They get about nine percent to 15 of the rent you are paying. It is all about the sharing economy. It has not really entered much of our consciousness in the u. K. They are on a marketing push. City,spreads from city to the value goes up and up. 2. 5 billion is how much it was worth a year ago. Now, 10 billion. Phenomenal. It is getting people very excited. As Alix Friedman was saying, everybody around us says, why have i not started a tech company . Tell us about the background. When you look at the people who backed this company from the start, early investors are the likes of sequoia. They backed whatsapp as well. Also, founders fund. That is peter thiel, one of the first backers in facebook. He also knows how to pick a company that is off to a good running. He put money in airbnb. Now they need deeper pockets. Capital,going to tpg the other big capital firms. I guess with a lot of these disruptors, regulation is still a problem. It hasnt been properly put in fore, who pays insurance . It is very safe in terms of insurance. Airbnb has put that in place themselves. The regulatory concern is about the council. Is york is saying, it against our rules for you to rent an apartment for less than 30 days with a tenant not there. Paris is getting concerned, berlin is getting concerned. How much is this the hotels lobbying . Not the business clientele, you and i are not going on business trips using airbnb even though im may look at it in the future. It is mainly those holiday makers who want something more bespoke or far cheaper. This is the area it is disrupting. This is perhaps why governments and councils are wanting maybe a little bit of money. They want some taxation on this. Notanies like airbnb are trying to answer the sort of responses. A lot of countries still have a tax for hotels. Thank you so much. Caroline hyde with the very latest on airbnb. Coming up, more on skyhigh valuations. We will be speaking with jpmorgan when on the move returns. Welcome back to on the move. I am Francine Lacqua at Bloomberg European headquarters in london. We are 30 minutes into the trading day. We started off shaky. Now you can see a lot of these forces are unchanged. The ftse is flat, the cac 40 is flat. The dax is gaining a touch. Probably the biggest thing we have had all week is what janet yellen said. Stocks flat for the first time in three days. Basically, investors watching options. They are watching the situation in ukraine with those extra sanctions being put by the u. S. On russia. This is a picture for currencies. Point 3778 ne 1. 3778. Fitch raised the outlook on the u. S. Congress suspended the Nations Capital men for a year, reducing the risk of default. The missing malaysian airliner may have cruised across the indian ocean after diverting from its route. That is according to an analysis by engineers whose satellite picked up the jets pings. Says it is still waiting for further reports from australia. Russian stocks fell after the u. S. And eu brought in sanctions against russia. The british Prime MinisterDavid Cameron says the eu sneak needs to speak with a clear and united voice. It is important to send a very clear message. If there is further destabilization in ukraine, there should be further measures taken and we have agreed tonight that we will task the European Commission to draw up those possible measures. That is progress. Ipos are off to a start this year. For more on what has been driving this frenzy, we are joined by the cohead of Equity Capital markets for jpmorgan. Great to have you on the program. Every day, we report on a new ipo. Good morning. It is a very constructive environment. Both the demand and supply side of the equation. Operating metrics are better. We have a fantastic opportunity to monetize investments. I think investors are looking for returns rather than asset preservation. This is ceos giving much more comfortable. Last year we had great valuations and ceos were thinking, i am not sure. What is the conversation you are having with these executives . They are look at this, feeling a more sustained level of profitability. That is important. ,nce you decide to go public that is the first step in a very public life. Now you have had the u. K. Gd p, jpmorgan forecasting just under 3 for 2013. 2014. Few privateite a equity investments. They have done well. Timeis probably the first in recent years where they have had the opportunity to partially monetize. What should we be watching out for in terms of Industry Growth . It will continue to be quite a diversified. A lot of the technology stocks, biotech, Retail Consumer driven ipos. Jpmorgan did a couple recently. Services will continue to be active. Media and financials. We talk about ipos in the tech sector. Tech valuations have been crazy. I use all the stuff. Think, that valuation seems crazy and yet i am addicted to them. Does that explain the valuations . I cant talk about specific valuations, but yes. At the end of the day, what is driving this is a lot of liquidity. Spacek. Rackspace tech is more consumer driven. The u. S. Is more innovation driven. All these Technology Startups are coming to the market, and they have real earnings. They have a tangible path to profitability. There was about 120 billion of u. S. Funds flowing into equities. That continues. The most important vindication of valuation is this is look att if you 2014, ipos have returned about 8 in the u. K. Market. The ftse is down about 2 . That is very important. That we continue to price ipos in a balanced way and they trade well. What are some of the conversations you are having with ceos about whether they want to ipo . Especially for tech. Right now, in the european space, it is pretty uniform across the board. To me, they are just reflecting a high level of consumer confidence. Profitability is high. Therefore the confidence to acquire and grow organically is high. Two, the certainty of execution is high. Acquisition funding is very high. At jpmorgan, we are focused on strategically working with the Balance Sheet for acquisitions. In the equity markets, the sentiment extends beyond ipos. This must be depending on the region or the country. , are we have to tell me going to see a lot less russian ipos in the next couple months . That is a fair point. There is a lot of uncertainty. Investors will take a step back. Clients on ang daytoday basis. Cautious will be more on some of these markets where there is political uncertainty. Most ofis correct for the emerging markets . I would say mixed. Russia, yes. Southern europe is different. The sentiment is very positive. China, people are concerned about growth. It varies. The european emerging markets are quite it is more the dollar emerging markets which are suffering. What is your best tip that you give to ceos . Do you have a motto . Is a private company, the first thing you need to sake is, are you ready for a public life . The current equity markets are buoyant enough that you have to evaluate the window. Be driven by a desire to create capital for growth. It has to come from the fundamentals of the business. If you have an ambition, this is the right time to evaluate. Thank you. Despite a better than estimated thirdquarter, nike is signaling that momentum may slow. For details, i bring in hans nichols. What is the story . It is a currency story. We are talking about shoes, advertising. Nike said they expect to see slower revenues in in part because of a strong dollar. Little bitng down a because both of these companies rely on markets outside of their home market. For nike, 45 of their revenues come from outside of the states. The overall numbers were fantastic. Profits beat, revenues be. They are close to 7 billion dollars per quarter. They spent a lot on advertising. Callsillion on what nike demand creation. A 20 increase in the third quarter. It wont get any cheaper with the world cup. They are big sponsors. Manchester united, nike is considering sponsoring them. A 1 billion deal. 100 million each year for a 10 year deal. A lot of money for manchester united. One final note of optimism, nike has seen a 12 growth in their home market in the states. People are starting to wear nikes not just to the gym, but to the market. It is becoming a fashion statement. I am sometimes wearing my old Running Shoes to the grocery store. Do you ever do that or are you too italian . Of course i am too italian. I do hightops. Thank you so much. It is a big deal. Hans nichols will have plenty more on this nike story. Coming up, barclays thats on the wrong millionaire. What it will cost them, next. Welcome back. I am Francine Lacqua and london. This is on the move on Bloomberg Television. Up sanction war is heating between russia and the west. The u. S. Has been taking aim at putins inner circle and some of russias wealthiest. Here for a rundown, bloomberg billionaires editor joins us. One of the names we are hearing is an arty timchenko. Who is he and how is he getting mixed up in this . These are guys who have long soviet history. His father was a soviet officer. He was born in ukraine. He is an armenian national. He is a longtime associate of Vladimir Putin. He is very antagonistic about his connections to putin. He doesnt ever talk to the media. We do know that they met in the early 1990s as the soviet union was crumbling. They share this judo connection together. How badly has he been affected by sanctions . Pretty badly. He had a worth of about 11 billion at the start of january. It is now 8. 4 billion. Just before the sanctions came out, he transferred his ownership in gunvor, a large oil trading company, to his partner. A guy named torbjorn tornqvist. They started the company. They each own 44 . Now, timchenko doesnt own any of that. There has been a lot of transition over the last couple of days about his fortune. It is unclear how that transferred, whether it was a cash payment, gentlemans agreement. There could also be sanctions on his partner. This is pure speculation but i guess we will have to look into that. How much further risk is there to his fortune . Pretty significant. Novatek is another large piece of this. It is down 13 in the last three days. He has a large petrochemical business in russia. He has Oil Transport businesses. He is tied to the core strategic assets of the russian economy which is what president obama, chancellor merkel and others are going to go after. Is it right that we think putin has some money invested in these companies . He is trying to push that away. Is there talk of that . It is a longsought secret. Many people say that putin owns a piece of gas prom, putin owns this, the Treasury Department said he was an investor in gunvor. Gunvor has denied that. There is no proof of exactly what putin does own. Thank you so much for all of that. The pulse is coming up. I am joined by my coanchor, guy johnson. We have a pretty packed show coming up. We certainly do. I have heard that name somewhere before. France, that is where i heard it. The family is becoming one of the biggest in terms of business and france. Big interest in vivendi at the moment. Ceo, takingow the over for david jones. A lot of speculation as to what he is going to do with that. Is a lot of things happening in the advertising sector right now. We will get his take on what is going on. He has his feet under the desk. Did he we decorate the office once david jones left . All those kind of key questions. Then we are moving onto the ukraine. We have got meetings taking place in brussels. The u. S. Ambassador is going to come and see us. He is going to talk about what the president is thinking at the moment. The relationship between the u. K. And the United States. We are going to be talking about the new embassy here in london. The rumor is they are scanning every brick, brick by brick, to make sure there is no security threat. We will ask whether that is true. And how much it costs. Thanks so much, i am looking forward to the show. Billionaire feud over sprint is now costing barclays big box. Here to explain is matt campbell. It began over sprint. Painays is now feeling the over the alibaba ipo. That is right. Barclays have found themselves in the midst of a feud between some very wealthy people and one that could cut them out of quite a lot of ipo fees. Alibaba which is going public in new york with a valuation that may hit 200 billion. They agreed to advise and finance a bid by dish network, controlled by Charlie Ergen in the United States. Sameame time some a time, softbank owned by Masayoshi Son was also trying to buy sprint. He was not so thrilled that barclays was involved. He has brought up alibaba and said, please dont work with barclays. Softbank owns quite a big chunk of alibaba. His opinion does count. Barclays have been frozen out. I guess he goes and conflicts os and conflicts happen all the time. How do they usually deal with them . Of course these conflicts happen all the time. Part of running an Investment Bank is looking to manage them and not offend clients. Think the intensity of this one is certainly very unusual. Anyone who has come across masa will tellmasa son you he is not a typical executive. He is an aggressive, hardcharging guy. That is a challenge to manage for any Investment Bank. Ofwe were speaking to one the heads of jpmorgan about tech ipos. What are you hearing on the ground . Are we going to get a lot more ipos . It is beginning to look that way. We have to see what happens around various geopolitical issues. Ukraine, what that might do to the equity markets. What i hear when i go talk to people in the Technology Sector is, anyone who is thinking about doing an ipo of their tech company is being told by their advisors, now is the moment. The markets are moving. There is appetite for this sort of thing. You can run a socalled dual track process where you are also looking at an m a solution. ,s we have seen with whatsaoo sapp, acquirers are set to pay big bucks. Thank you so much. Stay with on the move. Brand haslian fashion its roots in rome. I got an insider look at the house that cindy built. That fendi built. Italians opened a friend leather shop in rome. Their name, fendi. The mental past to their five daughters and it is their the fendi story begins. Companyeir watch, the grew into a multinational luxury brand. They had some help from this man , carl later fell. Fendi, he joined stripping the lining of its iconic first and flipping them down with new innovative techniques. His collaboration continues to this day. Create theendi to brands most successful product. Created in 1967, the baguette by sylviasigned fendi. Four years later, the biggest change at fendi in its history. French luxury powerhouse lvmh bought a 19 stake in the company. Sylvia fendi is still creative director of accessories. The Younger Generation in the ranks, the company is still very much a family affair. Its heritage is strong. I also sat down for an exclusive interview with fendis ceo. Have a listen. We are working on the elements that make a company successful. The content of what you sell in the store and the communication, the magic that makes things fly. Nowadays, there is a lot of money in the stores. Is it selling a dream . Selling your way of seeing daytoday. You want to give them a feel. What are you trying to achieve with fendi . Have a great clientele. We are trying to the appealing to a younger type of customer. Pricesge of crisis of is quite bold. Things thate little you attach to your bag. This has a type of appeal for the younger audience. At the same time, trying to cultivate our more mature clientele with more mature products. Marry online with luxury . This is something a lot of ceos struggle with. I know i need an online preference but then i am seen as losing that luxurious aspect. This is not much of an issue. In the era of the internet, everything is immediately everywhere. I believe that the internet brought a lot of transparency into the way we are looked at. You cannot lie anymore. I believe this is healthy and in a way, brings up the level of competition to a more fierce level. We will have printing plenty more on fendi throughout the day. Guy johnson and i are back. You dont want to miss the interview at 9 10. We speak to the new ceo of havas. In the meantime, you can follow us on twitter. When closing in on crimea. Russian lawmakers will vote today to annex the region. We are live in brussels as europes leaders consider their response. Twitter versus turkey, the social Message Service tells users to bypass efforts to shut down the service. We talked to the heart of the french as ms. Dynasty. Yannick bollore joins us shortly from paris