Welcome to countdown. Im anna edwards. It is 6 00 here in london this tuesday morning. Bloomberg reporters are standing by across the world, ready to deliver the stories that will drive your day. Ryan chilcote is in moscow to walk us through his exclusive interview with Dmitry Medvedev. Stephen engle is in beijing to tell us what is topping the agenda. Has thenathan ferro details on the guilty plea by Credit Suisse with u. S. Authorities. Acktrack top story in an exclusive interview with bloomberg television, russias Prime MinisterDmitry Medvedev sat down with Ryan Chilcote to talk about everything from the ongoing conflict in ukraine, the impact of sanctions, and russias relationship with the United States. Ryan chilcote joins us from moscow with the details area brian. High, anna. This was the Prime Ministers first interview in four months. We spent a good amount of time talking about sanctions. The Prime Minister is saying that the u. S. Has called. This reminded him of Leonid Brezhnevs rule of the soviet union, saying that it was not since then that he has seen such a politicization of trade ties between russia and the United States. ,s for the personal sanctions some russian politician said that is something that didnt even happen in the darkest hours of the cuban missile crisis. Have a listen. Russian Prime MinisterDmitry Medvedev. To put it simply, no one is happy about sanctions. Moreover, you probably noticed that we have responded to them harshly. It could cause some unpleasantness to the country exposing imposing the sanctions. Lets be honest, though sanctions are a sharp knife for European Business and American Business. The only ones who want sanctions are politicians who use them to reinforce their convictions and demonstrate their power. For example, our american colleague needs to show the mecca public that he doesnt fear russians. They need to show that the u. S. President can make top make tough decisions. What americans are doing. The situation is somehow different for europe. Speaking about president obama, because youre the architect with president obama of the reset in relations, are you disappointed by how president obama has handled this crisis . Yes, i believe that president obama could be more tactful politically than discussion those issues. Some positions taken by the administration are disappointing. We have done a lot for russianu. S. Relations. The agreements that were reached in america were useful. Im very sorry that everything that has been achieved is now being eliminated by those decisions. Basically, we are slowly but surely approaching a second cold war that nobody needs. Why am i saying this . Because a competent politician reserve, to make subtle, wise and intelligent decisions, which i believe mr. Obama succeeded at for a while. Was being done now proves that the u. S. Opposition has run out of patience. Of United States will be one the parties to suffer from this. Anna, resident putin is in china today. Prime minister medvedev says he is to sign an historic gas supply deal that we estimate could be worth as much as 400 billion over the next 30 years. Int comes amidst talk western europe about diversifying away from russian gas supplies. Though the Prime Minister says he is not really taking that too seriously, because he doesnt europeansat western have a viable alternative. Have a listen. Is not because we dont attach much importance to the statements. First off, every country or group of countries, including the European Union have the right to diversify their source of supply. That is true. We dont attach much importance to that, simply because there is no viable alternative to russian supplies. We just happen to think that we as a major Energy Supplying power should have an opportunity to deliver gas not only to europe but to asia. I wouldnt look for any politics in that era to have no doubt that supplying energy to the Asian Pacific region holds great promise in the future. We have enough capacity and enough gas to send supplies to both the eastern and western roots. Worstcaseat the scenario, purely theoretically, any undelivered european gas supplies can be sent to china by the eastern route. Again, this is an absolute theoretical possibility. If western europe was to move y from russian supplies all of this talk is absolutely abstract or politicized. Let them give us a calculation. Understand, even if this is done on a balanced basis, the price of Energy Supply from the United States of america would be 40 more expensive than russian pipeline gas. We discussed the deadline that ukraine is facing. The Prime Minister telling me that ukraine owes russia 3. 5 billion for gas. He doesnt expect to get it all in one go at the beginning of june, however, he said if russia is to get at least some of it, enough to indicate that ukraine is serious about paying, that would be enough to avoid a supply disruption. The russians would like to see a timetable that ukrainians intend to follow for further payments. Thing that is important in this interview is with the Prime Minister declined to say. Thatclines to guarantee the east and south of ukraine would remain outside of russia, that they would remain art of ukraine. He also declined to recognize the president ial elections set to happen on may the 25th in ukraine. He said, we will just have to see how that election goes. Anna, back to you. Much. N, thank you very Ryan Chilcote that exclusive interview in moscow. You can see that exclusive interview in full at 5 00 london time. That is the russian Prime Minister, Dmitry Medvedev and Ryan Chilcote at 5 00 london time. As ryan was saying, Vladimir Putin is in shanghai today. The top of the jet is a contract to supply natural gas to china. The deal could be worth close to 400 billion. Lets talk to Stephen Engle who is in beijing. Do we have a deal yet, stephen . We dont have a deal yet that we know of. We have been waiting for some headlines to cross from their meeting. It was originally open to pool reporters, then it was hastily canceled. The pool they must really be hammering out price for this deal. I assume. This is a pipeline deal that has been stalled many times over 10 years overpriced. Anin has told Chinese Media interview that was published yesterday here in china that the nearly finished. Bigprofile and china is a one. Gazprom aims to sign that contract with China National petroleum during this visit, if not even this afternoon. The deal is valued at 400 billion over the proposed 30 years. A 22 billionuild pipeline to china to carry as much as 38 alien cubic meters annually. Oft is almost one quarter chinas current consumption, estimated at about 10 of chinas consumption in 2020. The delivery could start as early as 2019 or 2020 if they get this deal signed on this visit. Price again has been the Sticking Point. Gazprom ceo has said they are just one digit away, but with russias economic troubles and the ruble outflow we have seen with those sanctions from the west, it will be interesting to see if we can has to make concessions in his talks right now with the chinese president in shanghai. Lets get back to the Credit Suisse story. This was bank has pleaded guilty to helping americans cheat on their taxes. That makes it the first bank in more than 10 years to admit to a crime in a u. S. Courtroom. Joining us now from zurich is jonathan ferro. Tell us more about the agreement that Credit Suisse has reached with the u. S. We expected that outcome. Where the uncertainty was was what would happen to management, to freddie duke. The ceo and chairman will keep their jobs, at least for now. This will be a chapter that the bank wanted that plenty of questions on the table. Lets be clear about that. Could they have handled this investigation better on Credit Suisse his side of things . On Credit Suisses side of things . Could management have handled it better . The u. S. Attorney general gets a clue yesterday. Take a listen. Failed to take even the most basic steps to ensure compliance with tax laws. When the bank finally began to feel pressured to correct Legal Practices and comply with the of the justice departments investigation of which they were notified in 2010, Credit Suisse fails to retain key documents, allowed evidence to be lost or destroyed, and conducted an inadequate internal inquiry. That is not exactly a ringing endorsement, is it . Wraps not heard was the significance of the guilty plea . We talked quite a bit yesterday about what this would mean for the bank and for other banks doing business with Credit Suisse . The consequences are twofold. Politically, as is a big scalp that the investigators were under pressure to get. They can put it on the mantel piece. Optimistic. Is he says we can focus on a future. He said this has no Material Impact on our business over the last several weeks. It is very easy to sensationalize the potential fallout from this, but lets be clear about something. Ask people to consequences are and they are not 100 sure. Able to carry on doing business with Credit Suisse . If youre a client, do have internal rules that prohibit you from doing business with any entity that has pleaded guilty to a crime . Best if youomeone ask someone to truthfully answer to that, they just dont know. Towould take time for it become clearer. Jonathan ferro with the latest from zurich. Lets continue the latest news on pfizers attempt to take over astrazeneca. Leif johansson would not say the offer was hostile, but he would not call it super friendly. Is the end of the road at this engagement, and certainly at these terms. After thee offer of 55, but we had other things that concern is also that we did not get resolution to do to the hurry with the bid itself. As we stand right now, this is the last and final offer from pfizer. It. Ave rejected later this hour, i will be speaking to swedens finance minister. He dealt with job losses and sweeter in the wake of the astra and set a coverage zeneca mergerd that took place 15 years ago. Carney take action . We will discuss that and other topics right after the break. Time for todays company news. The p faces billions of dollars in additional payments after it failed to convince an Appeals Court that the companies being forced to pay claims that arent directly related to the gulf of mexico oil spill. The u. S. Court of appeals thatted bps contention they had misinterpreted the agreement. Google is acquiring mobile Device Software start up divide. Trend caters to a growing known as bring your own device, where companies let employees use their own mobile devices while using thirdparty software to separate business and personal functions. Go pro has filed for its initial public offering. Go pro posted a 60. 6 million profit last year, almost double what it earned in 2012. While most of that was acquired through cameras and accessories, it plans to as edition itself as a media company, todays filing shows. Time in london is 18 minutes past six. Mark carney is about to meddle in britains love affair with housing. The Property Market is at risk of overheating. Our next guest says the sense of urgency has shifted. Were joined i the chief economist at invest tech securities. They say mark carney will take action on the u. K. Housing market in june. Are you one of the 67 . I am indeed. If you look at what the bank of england have been saying over the past few weeks, there isnt a problem in the u. K. Housing nationally,ally that they are saying there are signs of heating. It would be foolish to ignore the risks that might he posed at the medium term. To me, what that says is there will be some action to curb some potential excesses in the Housing Market. To comeion is not going from the Monetary Policy commission but from the financial policy committee. The Bank Committee is likely to employ some of its new tools in terms of macro prudential policy, which it designed to curb financial instability. Were watching the afp c. Will june be a month for action in the shape of mark connie and mario draghi of the ecb . People are speculating as to whether we will see some action from the ecb. It will be an interesting month. A number of flaws it can of tools it can deploy. Can, for example, increased Capital Requirements on certain types of mortgage lending. What it could do is pass the stress test further. There are things it can do which directly affect the Housing Market that dont have any direct Monetary Policy affects. Ecb members have been talking about lowering the rate corridor , which would include not just a reduction in the refinancing rate, but taking the deposit rate into the next territory. Stay with us for further analysis when countdown returns. Welcome back to countdown. We speaking to the chief economist at invest tech security. Dmitri medvedev says a second cold war may emerge from the crisis in the ukraine. How does that make investors feel . Up tothat we are building elections next weekend . The russians are very good at laying down their markers, arent they . They have done that from medvedevs comments, also in terms of the troop movements by the ukrainian borders. Theyre sending a message to the ukrainians, the European Union and the u. S. That is not going to be pushed around. Yes, the elections at the weekend in the ukraine, a lot of uncertainty about how negotiations will go in the postelection environment. Russia is not backing down. A to we still continue to see low volatility environment. The feds Richard Fisher was saying this wasnt healthy or at faced some sort of correction. Cally , the odd it of volatility shakes investors out. It is good, providing a volatility is not too intense. We have seen the markets move. Last week, we had one or two sessions where u. S. Investors were concerned about u. S. Stocks. Subsequently we had a bit of a rally. Somehinking we have seen volatility in those markets. My impression is that if you look at u. S. Stocks, u. K. Stocks, european stocks, they have not been hurt in value. Does a growth crisis at the eurozone risk emerging . Some economists are concerned about a lack of growth, low inflation. Some of that is being expressed at the periphery in terms of movements in the bond markets. Youve seen some of those yields moving higher on some of those peripheral eurozone debt runouts. Im not too concerned about the eurozone growth. Last week, gdp numbers were disappointing, but that is not a big deal in the great scheme of things. On the peripheral, and that one trigger was Capital Gains tax being levied retroactively on greek bonds. That didnt help the rest of the periphery. You have to recognize how far the peripherys rally. If you have spanish and italian 10 year bonds yielding as they were below three percent, portuguese yields below four percent, how much further can those instruments rally . Youre going to see some volatility at these levels. Thank you for joining us this morning, philip shaw. Well take a break in the program. Up ahead, berlins unfinished airport comes under attack. Details next. Welcome back. Time for todays currency check. At a two. Ading the record low rates are probably there for some time to come. Growth is below trend. That message from the reserve bank of australia. Appropriatee stance for some time and no reference to the currency. Breaking below [indiscernible] is a little bit of a reprieve. Ordered troops back from the Eastern Frontier of ukraine. Not confirmed by nato or the u. S. What youre seeing is a reprieve on the ruble. Dropping 50 on the chicago mercantile exchange. These are the Bloomberg Top headlines this hour. Russias Prime Ministers in his country is likely to agree to its first longterm gas supply contract with china. Dmitry medvedev tells bloomberg that the agreement will come visit. Esident putins visa delayednd payments based on u. S. Sanctions. Therefore i would like to law in the context of the this was a direct violation. They trusted the Payment Systems. A chinese army and government is denying charges that five members of its military still u. S. Trade secrets by hacking into corporate websites. The u. S. And i did the chinese officials indicted the chinese officials. Been thes it has victim of u. S. Espionage. Thai army has imposed martial law. Saying it is not a coup. M a in the communication sector in the u. S. Flourishes with at t snapping up directv. The acquisition of vodafone looking less likely. Here with a preview is caroline hyde. It looks Like Vodafone is on its own for now. Going it alone and that is what Goldman Sachs analysts are saying. M a in terms of vodafone