Will come to countdown. Which just gone 6 00 a. M. In gone 6 00its just a. M. In london. Ready to deliver the stories that will drive your day. Ryan chilcote is live that the st. Petersburg foreign. Mia saini is in hong kong with details of the ipo. Jonathan ferro is in the studio to walk us through the latest fed minutes and elliott theine is in tel aviv as purchase of an israeli food company is going to be announced. This hour, a bloomberg first interview with the Russian Deputy economy minister. That is at 6 30 a. M. London time. Will be here to discuss those earnings. And on the move, hearing from the National Bank of abu dhabi. Its the biggest gathering of Business Leaders and this year the most controversial. Ryan chilcote joins us from st. Petersburg International Economic forum. Youve been covering this summit for 20 years, pressure for two decades in the big top line on this is who has decided not to attend. Is that a fair way to deliver . I think so. Whos not here and why. Everything from lisa, goldman and Goldman Sachs declined to come after the white house said it would be best if they stayed away. It is not just u. S. Ceos but european ceos are largely staying away. Bankmf, the ifc, the world , they have all declined to come. Its pretty clear theres a message here, a signaled president putin that if he will continue with operations in ukraine that there will be a price, isolation and this is what it looks like. Thats not to say that nobody is here. We have some pretty serious involvement. The boss of bp is here. They own 1 5 of their Largest Oil Company. Clearly, the attendance is not what the russians would like to have seen. It will be an Interesting Forum without a doubt. We will look at how companies are navigating this geopolitical crisis and how russia itself is trying to get through it. As you mentioned, the economy minister coming up at the bottom of the hour and we will talk to him about russia will try to maintain growth as it is increasingly isolated. The big issues. The geopolitics you mentioned, everyone trying to navigate, its changing all the time. We have reports that there are some troop movements on the Ukrainian Border but we are waiting for confirmation. Whats the latest word on the ground there in moscow . Ukraine remains tense, obviously. President putin made some conciliatory comments the other day when he was in shanghai. His presence in shanghai and china speaks volumes. Russia is trying to diversify away from the west to try and protect himself from threats. Would that be enough . There are a few points there. The gas deals at the russians eu would somehow find a way to diversify away from supply but i dont think thats in the cards just yet. That would still be an issue to the russians. The other issue is the ukrainian election coming up on sunday on the western community has said his the trigger for more sanctions. Out of therly not magenta trying to find a way to navigate out of this crisis they are finding themselves in. Ryan, we look forward to that interview later in the hour. The deputy economic minister with ryan chilcote. The chinese amazon raised 1. 78 billion in its u. S. Ipo pricing the shares above the market. Lets go to mia saini in hong kong with more. This is a biggie. Get ready for the biggest offering ever selling some 93. 7 million american depository receipts for 19 each above the. Ndicated range at a time when Tech Companies are trading off of the march , they fit into a category of people who are essentially betting on the chinese growth story. Think about it. Going online to make purchases in china and two, growth in terms of a richer, wealthier chinese consumer. Ecommerce will increase some 64 this year in china. Its only 12 . The offering price means is close to 11. 5 million. Lets also talk billionaires because a new one is getting minted following the pricing. The founder and chief executive officer becomes a billionaire with a net worth of more than 3 billion. Lets talk about chinese manufacturing. Preliminary data out for china out today. Give us the latest. A fivemonth high, i think is the headline. The fivemonth high for month of may. Still in contraction mode. Higher than the median forecast of 48 point three. This report is based on responses to surveys sent purchasing managers at over hundred 20 different companies. A final reading will be released june 3 and the official version will come out june 1. Just so you know how to interpret this figure, china essentially is showing some signs of stabilization. That is how we are commenting on the number. This is a result of the program of the Program Policies implemented over the last month or so. Downside risk still remained especially on the investment and property funds. Mia saini reporting from hong kong. Lets turn our attention to the Federal Reserve minutes from the fomc from the last meeting at the end of april. Jonathan ferro is here. What did you make of these minutes . Are what the market is focused on for the moment. Commencementthe speech at nyu yesterday from janet yellen and the big take away for me was that rates are going nowhere. No one is pushing for a rate hike right now so you will see them on hold for the rest of the year. Inflation is still low. Inflation is almost a Pressure Gauge at the Federal Reserve so there is no pressure for them to do anything against them a free pass to focus on the other side of the mandate, on and point it unemployment. Dont be fooled. This is where the big debate at the Federal Reserve is right now. Its about unemployment and whether thats a reflection of an improving economy that is getting eaten up month by month by month. The take away for the consensus is that actually its not. The Participation Rate is so low that it flattens the Unemployment Rate and you have people in parttime work and it is evidence of slack. People arent starting to push back at that view saying that the Unemployment Rate is an indication of Spare Capacity getting eaten up and that will drive policy not just for now but for the coming years as well. Plenty of conversation about the fed exit. Did we learn anything more about what that will look like and when it will come . Conclusion. Have a look at William Dudleys speech the other day. That will give you a better indication of how they are looking to exit. Perhaps it is symbolically significant that they are beginning to talk about it. Its time to pick up pace at the fed, bank of england, and elsewhere. If you listen to janet yellen, not necessarily from the minutes but its very similar to the pledge coming out of the bank of england. Rates will stay low, rates rises will be gradually unlimited. Its a big, massive promise. There is a division on Spare Capacity then how can you make that pledge . If you get it wrong the only a problem is living through quite a number of rate cycles and having a lot of promises. Anybody that has a crystal ball step forward now. There was a story where yellen is cautioning. Togethere fed guys get and shes basically said to not worry too much about it because it will all change, the complexion of the fed. There will be big changes in the Federal Reserve. You will see stanley fischer, on board. Leaving theoe is st. Louis fed and coming from the Philadelphia Fed to cleveland, three new voters coming in the next two months and that will change. Last time we saw a rate hike from the fed was 2006. Now already wolfed down but they are looking set to gobble them up in a deal valuing the israeli food group at about 2. 6 billion. Middle eastern editor Elliott Gotkine has more. This has been a long time coming, hasnt it . Theres been months of wrangling over this deal over the possibility that there will initial Public Offering instead of the sale. They are known as strategic because they make longer but they are many, many times more strategic to israel supporting scores of farming communities. As the number one Food Producer and distributor in israel with seven of the top 10 food brands and israel. Politicians were expressing potential opposition to this deal. The socialist farming commune who still have by Minority Stake in the company were concerned that if they got sold to the chinese that they would not receive the kind of dividend have been receiving up until now. All of that said, the company is majority owned by london based aipac partners. To block a sale to the chinese would have just been discriminating against the chinese. They are agreeing to buy 56 of that could tnuva value them at up to 2. 6 billion. For now, it looks like the sale is likely to go ahead. Elliott, thank you. More from elliott in the program. China pmi rises to a fivemonth high but our next guest says china is less dynamic. We take a broader look at the economy. Time for todays company news. Hello kitty maker sanrio slumping after analysts including Goldman Sachs cutting targets for the company sharing as much as shares falling as much as 23 . Asked users to change passwords after a cyber attack expose the database with login phone numbers. No evidence of unauthorized activity resulting from the breach. This comes on the heels of a web knownty brought breach as heartbleed. This sale is part of a 3 billion euro Capital Increase to help europes secondbiggest carmaker finance a turnaround. They want to renew its push abroad. Welcome back to countdown. Im manus cranny. China pmi rose to a fivemonth high sending asian stocks higher end optimism that the economy is stabilizing. Here to discuss the issues is chief u. K. Economist, rob. Good to have you with us this morning. Lets kick it off with china. The pmi still contracting that the export numbers are good. Newport are numbers are good. Should we be heartened by this . Theyre slowing down. It will not be growing at 10 year on year, but what were seeing is some stabilization around the rate of growth we have seen recently. That is both in the pmi but also the heart of data as well. We like to see that continuing and that is certainly our view. Chinese authorities have plenty of economic levers that they can pull. Do you see them doing that . Is that part of the agenda, in your view . Avoid it,uld like to but equally they want to avoid a hard landing. Our view is that china will continue growing at seven percent. Its unlikely they will need to do anything germanic, but if they do need to, then they will. The minutesk about from the fed. You say the fed will not do anything to spoil the recovery. Is that the overriding message you took away from the minutes yesterday . The rate hike is not coming anytime imminently. We are looking for it in q2 next year. She key phase in the fed minute last night as they did not see any inflation risk from continuing to stimulate the economy and trying to get unemployment down and and put up. That will likely and input up. Messagel likely be the for the next two months. They are going to look out how to normalize policy. William dudley talking about when a rate hike comes, they will be gradual. That was his message. Absolutely. Slowly and gradually getting to that rate where they will raise rates. We have a shift, havent we . In 2006 a rate hike was from the fed. Here in the u. K. , it seems to be a bit of a shift in the agenda. We are not talking about exit or discussing how and when rates will rise. The agenda has changed in federal bank speak. It is talking about the exit. It is changing. It is not a sudden seachange, but it is very gradually changing. I think that reflects the fact that the u. S. And the u. K. Are growing. Unemployment is falling. The u. K. Has been growing for five quarters now, the u. S. For some time longer. We had weather distractions in q1 but i think this reflects a return to growth and a need that over time youre going to have to hike Interest Rates as the economy keeps growing. Talking about rate hikes may be one of the themes they are talking about at the moment. The other theme that is coming through this week is about a lack of volatility markets. A number of central bankers inc. That is an area for concern, not evidenced in the minutes, but is that worrying from here . The lack of volatility . Worries me is the return to volatility. They increasingly talk about policy exit and this will be a big challenge for them over the next few years, this first rate hike that the fed will and bond buying later this year. We also think there will be a taper last year that was the caravan. Volatility returning is of course a risk. Banks will beal very careful in why they are talking about it early to try to prepare us for this. They seem to want a little bit of volatility but not too much. Its very hard to achieve. It may surprise you. Dont want you to be really, really surprised. Rob wood, thank you. Getting his thoughts on the u. K. Economy when we come back. Stay with us. Welcome back to countdown. Time in london is 6 23 a. M. Our attention to the whole of europe because we will get pmi numbers, the gauge of manufacturing today. What are you expecting to see in these numbers . Are contrasted with these confidence surveys that have improved through last year and into the First Quarter. I think we will see a slight slip in the pmi. Thats the risk here. We have ukraine, particularly worrying for germany which will be affected i offense in ukraine. I think we would get a slip in the pmi. Isthe Consensus Forecast well above 53. Decentyou marry that recovery rate, expansion, above 50, with talk of stimulus necessary to boost inflation . Context that these are still much better numbers and point to decent growth, stronger than the First Quarter. How do we marry it up . The enormous crisis caused massive unemployment and falling inflation and that is what were seeing now. There is a lag. It should push inflation up in the big judgment is how much will it drive up inflation . To step on theed accelerator more . That is going to be one of the bigger debate. The debate in the u. K. Has changed gears completely. The arguments of the first rate hike since 2007. We talked about pace just before the break. What do you make of carneys comment about the gradual pace hikes . T rate he says hes not going to raise rates and he brings forward the expectations. Honestly, i think Interest Rate rises will be gradual. It will not be hiked really quickly. The risk is if they are hiking earlier than the dovish rhetoric. What will we learn from the gdp reading today . We are going to get a bit of a breakdown on the expenditure side. Hopefully they would have recorded another decent quarter. We need that for the recovery to be more sustainable. The first releases of expenditure are very uncertain and will be revised heavily. Thank you for joining us this morning. Coming up, russia and china sign a 400 billion gas field. We bring you a bloomberg first interview with the russian economy minister alexi ulyekayev. A special report coming up. Welcome back. Lets head to Jonathan Ferro for the fx check. Lets look at the aussie dollar. Have a check on when aussie dollar came out . Its possibly good for australian towns will. That reading had a five month time. Lets get real about it. The rating is still in contraction territory but it looks on the bright side of life. Signs of stabilization in china, signed the stimulus kicking in and we have better to come out of the second largest economy. I will let manus cranny decide. These are the Bloomberg Top headlines this hour. Several explosions tearing through an open our market in china. The area is home to millions of muslims who, according to overseas groups, suffer from discrimination and oppression. Several recent attacks have been blamed on muslim separatists. Fed officials believe there is no risk of inflation as the central bank continues its record stimulus. Ds show the resid tradeoff between lower unemployment and inflation, but with inflation rates and employment levels still below targets, officials believe that stimulus will improve both goals. Says they now have 10 million paid subscribers 6 million lastom year. The ceo was recently called europes greatest digital influencer. He spoke to charlie rose about his passion for the music streaming giant. If you are in it for the money, its not the right thing to be going into. For me, it was all passion about music, technology, and trying to marry both of them. Fullu can watch the interview tonight on charlie rose. Its russias biggest gathering of Business Leaders and this year, its also one of the most controversial. Ryan chilcote joins us from st. Petersburg International Economic foreign with more. Economic forum. Im joined by the russian economy minister, alexi ulyukayev. Thank you for being with us this morning. Lets start with the elephant in the room. It seems to me that a lot of ceos, both american but not only american, european, have stayed away. Is that how you see it . All right for the participation of the businesses here. Some of them especially from america Goldman Sachs. Then it comes to europe, italy, spain, france. Norway, finland, korea, china, japan, the participation is there. It feels like the International Community is trying to send a message to russia. If you want isolation, this is what it looks like. I get the sense that you are onting slightly a brave face this year. Moving on, if we see a ratcheting up of sanctions, if we see economic sanctions or sectoral sanctions, how would russia respond . One more word about participation. We have sent a letter to each and any ceo of a company in position to be here and i said in there was some specific consideration. We would not in any way punished for that. Oure welcome in a sense the white