I am mark barton. A warm welcome. Announce a new ceo. For more on the new leader at the second largest car company and the tough act he has to follow. Heres Caroline Hyde. Will be chief executive designate as soon as may 1. And talking over from adam mulally. Years mulallys junior. Some 25een at ford years. Since december 2012 he has been chief operating officer and he has shown his power to me his strength in turning around the american business. Nine years ago he became head of the north american unit. It was the albatross around the making ford. I it was loss and dragging the whole company down. More than a billion dollars in terms of profit. A measure of profitability but it is so much better than the rest of its competitors. Is prettyve percent stellar. Already he is with running the weekly business conversation. The weekly business review. It should have been obvious that he should be the man for the job. What about following in adam mulallys footsteps . 2006 he was brought in and he turned ford around. And a 23 billion loan. If he had not taken the loan than the company would have it would have been no more. Still losing,s hemorrhaging money. 30 billion in lost. He has managed to make 40 billion. How will he manage to bring in. Ew types of cars he was able to reward investors and started reinstating the dividend. Sales are from europe. Biggest carmaker in china. He was essentially a playing man. A turnaround specialist. People were asking what does he know about cars . He knew management style and this is what is important. What make sure there is a smooth transition. Making sure that mark fields has all the tools in his box. They want the right person for the job. We are getting some news about phillips. It is quite a considerable miss. We have hadorts through the First Quarter. The First Quarter evident, coming in at 360 million euros. The market was looking for 413. This is approximately five percent. 2014 will be another challenging year for them. At 5. 0 2 billion. The met the estimate was for slightly higher. Three key focuses. Is health care and wellness. Encouraging the bailment in the order book and this is important. We are nowhere near the acceleratings ending levels. That is obviously some vision and in terms of a forwardlooking statement. And near 40 . , Foreign Exchange is the key message coming through. We are talking about this later. All going after these eight but entirels area that. , that is not just it is the contractor serving servicing them. Is services as well as manufacture. The phrase they use is solidstate. Now with led lighting they are around a bit longer than if a few seconds. Im obliged to put 75 into the property. Call philips to come around and change the bulbs . Am looking at three variations. Theyre very expensive. Thank you. This will be tricky. We will get inside from the top man. Joining us in about 20 minutes time. Do not miss that interview on countdown. Joe biden is meeting with ukraines government. Us now with more. Good to see you. I went back talking about sanctions . Were back on sanctions watch. There will be consequences in a conversation he had yesterday with the Russian Foreign minister if russia does not take action in these next pivotal days. Another u. S. Official saying sanctions could come in days, not weeks. A also get a sanction sense of what the sanctions might look like from another official. This would be of the personal nature affecting socalled cronies. On thursday afternoon when we got this geneva accord we heard the u. S. Secretary of state saying if russia does not take action of the weekend there will be more sanctions. And now the weekend is over and were hearing days, not weeks. How when it comes to , how is it . Timent in general sentiment about ukraine and russia and the situation has turned negative. The Moscow Exchange was down 1 . You have to go back to thursday morning to see that kind of pessimism. That was ahead of the accord that was reached in geneva when the russian president was talking about new russian saying these part of the country, the south part of the country was part of imperial russia. Which to a lot of people sounded like he was giving some kind of justification for another annexation. That sent the market south but we had the accord and markets got a nice bounce. We have seen a little bit of a drop in the yields on u. S. Bonds because they were not that many options for a flight to safety. Investors saying they are playing the Geopolitical Uncertainty of ukraine. We have the s p 500 facing the longest rally. Where are we on the geneva accord . It is confusing. The buildings that were seized in the east of the country have not been vacated as they were supposed to. That is where the socalled prorussia militia is. They have not left the building. They say they are not bound by the geneva accord. They can say they are not involved, they do not have any citizens. So how can they influence things . At the same time you have the rushes russians accused the ukrainian government. So on both counts they can complain that they have not done enough. In addition you had the suspicious killing of three prorussia activists at a checkpoint over the weekend. Russia said this was the right sector guys. Ukraine said that was russia killing their own rulerussia activists to create a pretext for invasion. Thank you. Big news crossing the terminal. Portfolioficant summation as this is worth mentioning. Buying glaxosmithklines oncology unit. Early will by the Animal Health division of novartis for 5. 4 billion. Novartis will be focusing on its three key divisions which are pharmaceuticals, i care, and genetics. Part of that, too massive deals are taking place. The big announcement is novartis agreeing to buy the oncology unit for as much as 16 billion. Novartis and glaxo are combining the overthecounter division. Some massive deals taking place within the drug making industry today. We will keep on top of that throughout this mornings show. Cheering. Rs are more on that story and the latest earnings from the company that popularized binge watching. Underthe geneva accord is fighting words, our investors caught in the middle . Time for the days company news. Teaming up to bid for allergan. Pershing square, the fund run by bill ackman have been bidding for allergan. And holding formal and is continued talks to buy astrazeneca. There are no plans to resume them. Deposition would be among the revived. Ver if tessa is looking to build cars in china in the next two to four years. The ceo said the company is building a big network of Battery Charging stations in china. The news comes as elon musk prepares to deliver the model s and the country. Time in london 6 16 a. M. Joe biden is in ukraine this week after a weekend of increased violence following the death of three ohrussian activists. Prorussian activists. Good morning, thanks for joining us. Is seeminglycord agile. Markets are for the moment shrugging off ears. Didnt have the capability to rattled Global Markets . It has the ability. There is too much economically andtake for the west europe and the states to be too aggressive. Ed the westson resolve to follow through. Would shoot themselves in the foot. Especially the eu, getting their source of gas supplies through russia and ukraine. The markets. Upset means we will not get a russian incursion into eastern ukraine. You do not think we will get military intervention . Do not think so. I am no expert but i suspect pointed outnomist on friday, it would be easy to make that incursion and maybe to take over the territory but retain control would be a difficult thing. And it would be a growing cost to the russian economy. An outflow of capital, etc. That would continue. Away from the ukraine story, what is driving markets for you, it is it Central Banks are the earnings season . More central bank season. This reaction function of the fed. We are trying to anything changed, has the arrival of janet yellen really changed manners matt ers . The underlying question remains how much slack is there in the economy . Encouraging initial claims figures on thursday. Also continuing claims falling again. You think that bodes pretty well for the next jobs report. Indeed. That was the initial claims related to the week from which the harris survey is calculating the unemployment rate. 312,000. Last week to the previous months survey. It could take two years janet yellen said last week for the fed to reject unemployment. That does not mean it will be two years before we see a rate hike. How does that play into our assessment of when the first rate hike will be because investors since the last fed meeting when she applied we , theysee rates raise pushed forward that rate hike expectations but they have come back a bit. A little bit. The force of the good figures we have seen almost continuously over the last two weeks have taken us almost back to those levels. Plus the six month gap. We are getting back there and will continue. The uses of for guidance which is the psychological effect area the rates will stay low. She is trying to wring as much out of that. We will watch for subtle changes in the language of the second half of this year. Thanks. We will have more details on the outlook for the u. K. Economy when we come back. Reiterate. Buy theyreed to healthling their animal operations at eli lilly. A massive overhaul for the swiss drug maker we will take a short break here on countdown. See you on the other side. Welcome back. The time in london is 6 24 a. M. U. K. Lastnt in the week falling below 7 . It would have insignificant if the bank of england had a clear target in mind. Where do you see rates going, will they go up this near year or next . Few meetings will become increasingly interesting. They will be privy to the may inflation report. The key chart to look at will be the banks expectations were the inflation wille be in two years time. Given the current market rate. Will significantly increase speculation about the rate rise. The rate rise possibly by the end of the year. What about the eurozone . You have some crucial pmi manufacturing data tomorrow. Confidence data on thursday. The euro is remaining stubbornly high. To the disappointment of Companies Like phillips. It was interesting. The last ecb conference where mario draghi brought up the subject of the euro very are early early on in the conference. This is not a target for us, it is a consideration but he brought it up early and it is front of mine for the ecb. Every chance that maybe not in may, maybe in june we see a cut and the deposit rate. Does that send the euro lower . That is one of the reason why that is the favored tool of choice for easing the ecb. Than fullyversial fledged qe which i suspect we will get to later in the year. Deposit rate. He you expect a continued slowdown but no crisis. I do not think so. We are seeing more and more vestiges of the fact that if you feel like turning to perhaps a good old capitalist solution to the property problem. If there is a property problem. This is largely centered in the major cities. More and more. Thank you very much. Joining us to discuss phillips latest earnings. Right after the break here on countdown. Welcome back. Lets get to Jonathan Ferro. We will look at the dollar yen. Hitting 110 by the end of the year. Can japan hit that inflation target of 2 . Import prices and Higher Energy costs and the yen is weakening. That will start falling out of the year in your calculation for inflation. Will the bank of japan have to do more . The overwhelming consensus is yes. Joining us now from amsterdam is the chief executive. Good morning and thank you for joining us. Rex good morning. To fxit just down movement or is it something more sinister . Certainly fx movements have a big impact. We saw 500 basis winds. And we work hard to offset that but we did not fully make that. Improveble to profitability further but in health care we had a temporary factory shut down to do with an altogether they resorted in a decrease of profitability. Headwindsrkets we saw and china was slower. Altogether it was not an easy quarter. And a market full of headwinds. Can you elaborate on those comments you made on china and russia . Any concerned about the china slowdown. Others worried about events in ukraine and the impact on the russian economy. Seeyou elaborate on how you the ongoing macroeconomic picture in china and russia. And how that will affect phillips. Sure. In china we saw the economy continued to slow down. Inecially it is noticeable markets. The Consumer Market is going strong. This is a hot roddick in much demand. Russia, there we see across the board a reduction in demand. Of course further aggravated by the fall of the ruble. That is where we see a double whammy. And then some smaller markets whether it is argentina or southeast south asian markets. Due to the volatility of currencies we also see governments being very careful with big project orders, for example health care. Do you think we have seen the worst of these fx movements, do you think the impact will decrease as the year progresses . Isthe impact of currencies having is stronger now than some of as some of the hedging runs out. On a comparable basis the effect becomes smaller. Whatu were talking about mario draghi will do, the euro is a bit too expensive. The longerterm we are optimistic about our opportunities. Phillips is wellpositioned with regard to mega trends and we see the aging and growing population that needs more health care. Roade minister pahlavis, operators, building operators are looking for led lighting. We grew our is this by 37 in the quarter. Just underlining how much potential that technology has. We remain fully committed to our 2016 financial targets. Many of our viewers will be aware that you are awarding these contracts to install complex Lighting Systems. You won this contract in washington in november. How big is this market, how much of a slice of this market cam phillips attain . Ken phillips attain . 60 hisn 60 businesstobusiness and business to government. The contract size is rising as we engage with customers on longterm projects in health care and lighting. These Lighting Projects where we help cities and road operators 80 are 70 to fantastic. They come with Business Models where cities can pay as they go. Basically paying out of their their save me savings investments in the new technologies. That is an exciting transformation that we are happy with. How hard are you finding it to achieve economies of scale and to make money in this new lighting era, in this era of led lighting . That in the new technology, the profit pools will be shifting from the build to the lighting selections. We have installed a new system. Ith Lighting Systems it is a plugandplay where technology is builtin. Where able to sell you a higher ticket item as we become the Solutions Partner. I find it an exciting business and i am not worried about the longterm prospects of the sliding systems business. What isou update us on happening on the audio and video units, your you agree to sell it and then you said you would not sell it. Offload thisre you division . Obviously there was a disappointment. Since then we have restarted the process. We see several prospective buyers create we are strongly engaged in that process that we expect this year to finalize a deal. Coming back to the euro. Standing whatre is fair value for the euro would you say . That is a difficult question. I am not a macro economist. Obviously by saying it i would like it to go down. Lets leave it to central bankers and other Financial Experts to what it should be. We do believe that it is overvalued as we stand today. Do you think the ecb will take measures, the implied they will. Do you think the ecb will take measures to drive the euro down imminently in the next month or two . Business guy. I am focused on winning more hospitals as customers and winning more cities to take our lighting and seduce consumers with great health and wellbeing products. Let me focus on that while you secondguess the European Central bank. I always ask you about your health and wellbeing products and a. L. Is ask you what hundred right now is capturing the publics imagination. About anothera product. You have all this about the toothbrushes, give us an idea of another product that is capturing the publics imagination. The fryer is selling so well, we are the number one nonfat fryer brand in the world. It has taken japan by storm. A new innovation i already alluded to, people are worried about the air they breathe. The air that is often polluted in big cities in china but also in Southeast Asia where the smog from a forest burning is hitting singapore. We see that consumers are fed up. They are buying our air purifiers in order to read cleanair in their apartments, in their homes. Recently newis a addition to the phillips stable and it has been growing very strongly. Multimilliontrong business for phillips. Always a pleasure to talk to you. We will speak to next quarter. Thank you very much. Still to come. Big moves from novartis. We have been recapping the big shakeup there saying at that business and we can tell you that the ceo will be speaking first on bloomberg coming up shortly on countdown. Welcome back to countdown. Todays company news. Captain america has vanquished his rivals. The film was number one for the first Third Straight weekend. The movie collected more than 200 million in u. S. Sales. Samsung says 2 billion for infringement claims is 57 too much. He called on a Yale UniversityBusiness School professor to make a case to a california jury. Samsung said if they have to pay anything it should be . 35 a hot a phone. Italys two biggest banks may announce a preliminary agreement restructuring advisor. They will pool bad loans into a loan. This is countdown channel. Our free video reported first earnings ahead of expectations. A boost in afterhours trade. Bidding a can lower more users with his its exclusive content. It is suddenly about this been chewing that we are accustomed to. Thelix says it is all about content now. That is why they are able to ramp up prices. We saw shares surge being profitability targets. Theyre able to squeeze more money out of each user. A big difference when you look at it like that. This is for unlimited web viewing. Dollarsng by o