Thursday morning. Standing byporters ready to deliver the stories to drive your day. David tweed is in berlin ahead ukraineeeting on the crisis. Jonathan ferro getting social and the first day of trade. Caroline hyde with the details on google as latest sales revealed that fact in its shift to mobile. Mcginty views on bloomberg this morning. Sap earnings with chief bigcutive Bill Mcdermott interviews in bloomberg this morning. Maurice levy from publicis. Wu tangs producer joining the one singlewhy even copy is up for sale. We will get the latest insight into the results with coceo Bill Mcdermott live from germany. Nothing from sap as of yet. Top that the blacks from ukraine diplomats top meeting. U. S. And European Union are getting ready for new sanctions. Is there a chance for diplomacy o work here . John kerry has already arrived in geneva. Is russia serious yard go do they want to go ahead or will they just continue to try to do stabilize east ukraine for their . N purposes they are unable to run or govern all of russia and we saw that with the failure of ukraine troops to actually take Eastern Ukraine. Guarantees for russian gas going into ukraine and also through to the rest of europe. Russia will also want to see that ukraine has a nonaligned status. They will never be able to meet the European Union and certainly never become part of nato. Was a discussion of a new ukraine constitution, something that all parties will probably be able to consider but certainly not consider the russian demands that any independent or autonomous regions and ukraine should be able to secede to russia. That will be off the table, mark. Where are we on the subject of sanctions . The u. S. And the eu are preparing further sanctions that otherhit finance, energy, areas of interest to russia. President barack obama made it pretty clear last night when he was talking that every time russia continues to destabilize ukraine that there will be consequences. What you have already seen as the russian economy weaker, capital fleeing out of russia. Are notns decisions just bad for ukraine but over the long term, bad for russia. Side the European Union with regards to sanctions, the European Commission sent 28 different European Union on exactly reports how sanctions were likely to impact their own economy. Thats where we are on sanctions if the talks fail or show that they cannot become the beginning of some further diplomatic effort to try and solve this crisis. European editor david tweed there in berlin. Chinese twitter rival weibel on the nasdaq today set to price it at the low end of the range giving a valuation of three point 5 billion. Jonathan ferro is here with the details. Welcome back. A time to go public as a tech company over in the United States. They filed for the ipo and you saw what happened to their peers. Linkedin, twitter, facebook all taking a beating. As has been nasdaq itself. It surprisingly had a range of 20. O its not a surprise that one is up the bottom of the range and the talk expect them we had with twitter at least. It is called chinas offer to twitter. Are there similarities . Up we look at users, twitter has 240 million. I know Everybody Loves this particular metric, revenue per user. 76 cents for twitter and 1. 46 for weibo. The Company Makes no money and has not been profitable for the last three years. Got to say that the problem but there is a wasted opportunity. Its not abnormal for making no money but its about growth and opportunity going forward. Ive never heard of the singer in china. Compare him to the likes of katie. , he has 72 million following him. Katie. Has 52 million on twitter. Its absolutely amazing and thats an opportunity right there. We dont know who that guy is here in europe, perhaps in u. S. And if you want to target this captive, unique audience in china, here is your opportunity. Heres the problem. To operate in china and a way that twitter and facebook they have too not, comply with censorship rules giving them the opportunity to operate in china. This limits User Base Growth out of china. You have to say yes and that will limit them going forward. You. Nathan ferro, thank we will bring you more on this ipo in an interview with charles dontt 6 00 p. M. London, miss it. The shift to mobile is proving to be a challenge for google with shares falling 6 in its latest missed projections for sales. Here with more, European Business correspondent, caroline hyde. Some of the trends are worrying investors. Isfollowing after hours and the third Biggest Company in the world, google. We have seen it with the likes of facebook. Theyre struggling to monetize mobile. Google has already been on the trends knowing we were moving towards cell phones. Larry page is upping the amount of adverts. Downrice they charge is nine percent because companies dont want to spend as much for a very small promotion on your phone. On a desktop you can have far bigger, more flamboyant advertisements. They are getting the last four each of mobile dollar. Tell us how it is broadening out from its core search business. Youre looking at tech companies, you can look at bottom line and profitability, but most people want to see sales, growth opportunities. They have 60 billion of cash and they are looking to expand outside internet search engines. Advertising is coming at a slightly lesser price but look at the forays they are making into robotics, cars, drowns even. They are pushing into hardware. Up 23 buts risen theyre really funneling money into google play, the equivalent of the app store for apple. Theyre spending money on developers there and acquisitions. As a big one, nest labs. That is getting google in the home and connecting your thermostat, your smoke alarm, connecting google to your home. Also theyre looking at robotics. Solar powered satellites about connecting people who might not have access to internet in very rural areas. Investors aremuch worried at the moment. Revenue is dwindling. Achieve you one fact. Theyre sounding optimistic. The chief is ms. Officer says that eventually mobile adverts will cost more than desk top. You have so much more information about us when we are on mobile. They can see where we are and who we are interact it with. The search for survivors off the coast of south korea enters its second day. At least nine people are dead and that number is likely to rise. Lets get the latest from mia saini in hong kong. Good morning. Give us the latest. Dead, 200 87 missing. There were 470 five passengers on board. No survivors have been found today. Chances of more rescue looks like it will just be diminishing due to the fact that there is a cold see in the temperature is very low. The coast guard is still hopeful that some passengers may still be alive if there is enough air in the ship. You are currently looking at live pictures. Over 550 divers are searching for the faerie. Strong currents, low visibility, making operations difficult. You can see the search crew on land. The accident happened off the schedule to route to a popular Tourist Destination island. It sank just three hours from the island. You can see the map on your screen. Investigators are looking into what caused the sinking including the possibility of hitting a rock underwater or perhaps having an explosion inside. What about the families . The families are not too far from the site you are seeing now. These are live pictures on the screen, hundreds of parents whose children to remain unaccounted for also packed into a gymnasium near the side of the sinking ship. A southn threw water at korean Prime Minister who arrived recently. The government is making all available resources there so they can find these passengers. The bow was currently visible from the waters, mark. Mia saini in hong kong. Fans will not want to miss todays in the know said and as the amazing spiderman two hits cinema. Up next, janet yellen and signs of inflation. She does not see any so far. We will discuss her comments next. Todays company news. The biggest container shipping agreement toding take over most of the chilean rival assets. This will make them the fourth biggest Container Shipping Company in the world and that annual revenue of 12 billion. Ibm First Quarter revenue fell almost four percent from a year earlier. They must estimate sending shares down in afterhours trading. Sales continued to tumble in the hardware unit in developing countries. With clashes over the company. This allows the ceo to continue in his rule of upgrading networks and selling noncore assets. Welcome back. This is countdown. Anna is away this week. Janet yellens pledge to continue to support the u. S. Economy sending the pound in opposite directions and we are joined by Asset ManagementGlobal Market strategist david lieberman. Good morning. Always good to see you. What yellen essentially said is what matters is how short the fed is of its goals of full employment and price stability. She pretty much gave the answer away. She said they are about two years from those goals. What are the implications of that . When yellen is asked questions about the direction of fed policy, she is trying to be a little more transparent. Its impossible to put an exact timeline on a how long this will take but in interestrate rises not imminent. They will continue along the path of tapering but will not do anything unexpected. Business as usual and effort to reassure markets that they will not be removing liquidity. Our markets now more confident that rates will not go up six months after the tapering process ends which was what she said after the fed meeting . Her comments need to be taken with a grain of salt. She may have been caught off guard and made the sixmonth comment. She meant when they see it, and its appropriate, that is when they will raise Interest Rates. Improving and is the winter lull seems to be passing. Looking at the data released this week, Capacity Utilization and the economy is firing on all cylinders. What do you think . When will tapering and . End . When will the first Interest Rate hike come . It will take something significant to derail them from the current pace of tapering and they will start to raise Interest Rates. Im not sure they want to pull the carpet under the economy. I had somebody say to me the other day that i will take a small explosion to derail the fed from the current path and i think thats a pretty accurate assessment. What does that mean for the dollar . It fell making us believe that investors may be pushing back their forecast for the first fed rate hike. What do you think . At the combination of that inflation numbers. They are seemingly going in slightly different directions. It looks like the risk is to the upside. They raise Interest Rates before the said whereas they said they will remain accommodative and that should result in a stronger pound and a weaker dollar. Lexi was significant when it comes to u. K. Data. Came fromeal wages this way rather than that way. Its important to keep in mind that one data point does not constitute a trend. That being said, wage growth is necessary. Putting more money in the pockets of consumers gets them back out on high street spending and in developed economies like the u. K. They are not dipping into their savings. As the recovery becoming more balanced here in the u. K. . Stronger Economic Growth should lead Interest Rates higher. They can rely on more traditional ways of saving because yields are more attractive giving them a little more security about what yields ahead. Weevil chat to you more next. Issue. Big russia, u. S. , e. U. Lots to talk about with david leibowitz. Stay with us. Welcome back. This is countdown. Im mark barton. David leibovitz is here with me. Russia, u. S. , eu meeting in russia. Our investors pricing in the worstcase scenario, best case scenario, do the goalpost have to be moved . Constantlypost are moving but the one thing that i have noticed at least is that investors seem to be becoming more comfortable with the fact that this will be a relatively drawnout process. There is no quick fix to any situation like this and unfortunately it just may be slowlyquo as things grind out and resolutions are smoothly reached. Emergingmarket riskier stocks have rebounded from the february low if you look at the msci emerging markets index up and year to date it is pretty much flat. January, emerging markets were falling. What happens from this point . Developed versus emerging . Its almost time to get into emerging markets. To me, it feels like theres a little bit of uncertainty, a little bit of risk. If you have a shorter time horizon, you may went to sit tight for the time being because there is some uncertainty. Turning to developed markets, things continue to get better. The pace may be slowing but can only grow at doubledigit rates becomesong before it impossible. Continued Economic Growth should be supportive of earnings and push equity markets higher. But not asgdp fell bad as many had anticipated. Is this a managed slowdown or secular . Extent, it is managed. The thinking about chana to an extent, it is managed. Thinking about china, now they are trying to manage the risk. On the other hand, they are trying to turn to more stable types of growth. Typically, consumptionled growth is more stable. We are seeing a managed transition whereby they should be looking at the quality and composition of the growth rather than the absolute number because it is not necessarily a bad thing. What about the applications for the rest of the world . It has been an engine of Global Growth over the past few years. That being said, as it transitions from emerging to developed and growth slows, it will be passed to others. Can europe and the u. S. Pick up the baton . Its also about places like taiwan and indonesia, some of the Southeast Asian emerging markets were they have not necessarily seen the same amount of development as china and now its time for them to lead with respect to the growth while china continues to be the elephant in the room. David leibovitz, thank you. Clanhiphop group wu tang is planning on selling just one copy of their next album. Whether music can still make money. Welcome back. Im mark barton. Lets go straight to Jonathan Ferro. This is a weaker dollar down against most of the majors. Pastor hitting hitting a four year high. Janet yellen in a devilish mood. Who would have thought . The fed has a mandate. We are not hitting it and thats keeping a potential dollar rally in check. Up another 2 10 of a one percent this morning. Mario draghi said because of this we might need more stimulus. Still unable to drive this one much lower. The French Ministry minister calling for an eu meeting on the euro. Picture that. This one right here becoming more and more politicized by the day. Bloomberg tophe headlines today. Emergency services continuing to search for nearly 300 people missing after a ferry sank off the coast of south korea killing nine. On hundred 79 have been rescued in most of the passengers were High School Students on a field trip. U. S. Secretary of state john kerry has arrived in geneva for crisis meetings with russia, ukraine, and the eu. The diplomats are meeting for clashest time since erupted in Eastern Ukraine. President obama says they will face increasing economic penalties unless Vladimir Putin supporting separatist militias inside ukraine. Janet yellen looking at wages for sign of inflation repression. Pay gains continue to proceed that historically lipases giving the first major Monetary Policy framework speech yesterday. By responding to changing circumstances, policy can be most devout reducing uncertainty about the course of inflation and unemployment. Some sales figures to form thes Biggest Company. Showing a fragile recovery and demand improving in certain markets. Read the new 1. 6 billion euros compared to the 1. 61 billion estimate from the analyst we surveyed, slightly below estimates but stripping out the effect of currency fluctuation, sales and dance by 6. 8 . In china are sales picking up. It contracted late last year. There was growth in spain, italy , for the First Time Since 2011. The Company Confirming the growth targets of more than 4 for the year but they are cautioning the Second Quarter will not be as strong because of high comparables from the year prior. Firstquarter sales up by 2 in europe showing a fragile recovery demand improving in emerging markets. Watch out for shares later and watch out for our interview with ceo maurice levy joining francine on the move. The earnings do not stop there. We have figures now from the french Premium Liquor giant, cointreau. Coming in below estimates and organic sales falling by nearly 11 . The market was estimating just under 10 drop. It doubled digit drop in organic sales looking for a decline of 9. 7 . Remy cointreua brandy, dropping 12 point eight percent. A threeway meson three of the big benchmarks. How much of that is down to china . That most ofaying this movement is down to china. That is where they are seeing the anticorruption movement. What they are saying is that they see the full year, the 35 ance the fall between and 40 . To give you a sense, 50 of remys profitability comes from china. They have been adversely affected by the chinese anticorruption extravagance policy. A negative impact on consumption premium risk. Once you have stopped consuming highend premium spirits, will the chinese return . Thats the critical issue. They were warned in january but k of whether the brea tr