In ukraine, billionaire Petro Poroshenko is celebrating his victory in elections after more than 50 of ukrainians tabbed him to head the next government. Ryan chilcote is in kiev. This is extremely important vote. What we know about the new president . Good morning, betty. What we know is he is worth by our estimate about 1 billion. His claim to fame is making and selling chocolate. Good businessf sense and political sense. He was a politician as well. He was the foreign minister under a former president and the minister under the former president Viktor Yanukovych, who we heard a lot about at the end of december. He was the first and only billionaire, oligarch, if you will, to join the protesters in calling for Viktor Yanukovych to step down. This guy has thrived in a variety of environments. President putin, and he thinks he is someone that he can deal with. Clearly, with the conflict between the ukraine and russia, that will be challenging. There is also an increase, and unrest, since the elections, ryan . That is right. He made it very clear he plans to unite ukrainians, and the first thing he did, even though he is not the commanderinchief just yet, just the president elect, but sign off on a ratcheting up of operations in the east of the country, which is interesting because the kremlin warned them not to do that. The ukrainians have not just ground troops, but they have warplanes, helicopter gun ships, and they have been fighting rebels in the east of the country very actively, reporting that they have killed dozens of rebels just today, in addition to taking back a regional air force airport that the separatists took yesterday. He is showing he will not roll over in this conflict and not let this happen in the east of the country take that part of the country either. Ryan, thank you. You will have so much more for us from kiev. Ryan chilcote. Pfizer pulls the plug on making another for astrazeneca, losing out on a major overseas tax break in the process. But give other companies are lining up to consider the same move. There is no sign Congress Plans to stop companies from doing that. Peter cook has more. This deal is dead. Pfizer saving taxes by moving headquarters overseas, but a tax break continues to live on. The inversion break lives on, no clear sign congress will move anytime soon. One of the selling points of the pfizernational zeneca deal was the tax advantage, that they could take over a smaller foreign company, and effectively and operations overseas reduce the u. S. Tax burden, even on earnings here in the United States. That was controversial, and it was a selling point for the company, the shareholders, as to why the deal made sense. The deal blew up, but it was not because the tax break. The tax break is still here. 14 companies have announced or completed their plans to use the inversion tax break since 2012, and there are a number of other companies considering it even after the outcry over the pfizerastrazeneca deal. Isnt their opposition . There is bipartisan opposition, but not bipartisan action. Your two Top Democrats in the u. S. Senate that would forward, ron wyden and carl levin, both of them are outraged by the proposal, saying he needs to stop, and they plan to introduce havelation that would blocked the pfizer deal had it moved forward, but there is no republican cosponsorship for their efforts. Proposal on the table that would require the shareholders would need to control 50 of the shares. 20 , now, the limit is which is why so many of the deals go through. It would have prevented any company that effectively had the ceo text as a foreign company, something a lot of multinationals would certainly fight. There is no indication of bipartisan support for the carl levin approach. Republicans are talking about doing full, comprehensive Corporate Tax reform, and short of that, they will not support this oneoff deal to deal with inversion. Thank you, peter cook. As the exclusive television partner, bloomberg is bringing from thenterviews Deutsche BankGlobal FinancialServices Investor Conference happening right here in new york. Stephanie ruhle is there with Societe Generale ceo fred oudea. Thank you. Welcome to new york. Barclays is pulling out of many businesses while Deutsche Bank had a capital raise, they are hiring, expanding, where does that leave you . Barclays is focusing on more of a Societe Generale model. They are trying to maintain the whole thing in a sustainable way. You say strong retail, you are closing 30 to 40 retail branches this year. Why . Impactingpacted business. It is digital technology. Not go to branches for meetings. With digital services. How do you foresee spending the 4 billion euros you have available to your private or Consumer Bank . First of all, we will generate 13 billion euros of capital, 4 billion for organic growth, and all businesses will grow. Of course, some that are than others. French retail will not grow that waykly, and in the same Capital Markets will not grow too quickly. Retail activities in emerging markets will grow at a much higher pace. Then we will spend 5 billion for the dividend, and we have a growth of 4 billion if is higher. When you talk about emerging market growth, is this russia and africa where you seem so enthusiastic question mark enthusiastic . You are absolutely right. It is central and Eastern Europe, and africa. Africa will grow the most in the next 40 years. Of course, it is a projected growth. Here is potential also in central and Eastern Europe and in russia there are better perspectives. What about the risk of investing in russia . Concern ofout the the rule of law. We had good experience in doing business in russia on a daily basis, and secondly, of course we want to grow, limiting the risk. What i mean by this in particular is it is it his selffunded development. As you can see, russia is relatively small. Exposure, not so big, but we see many customers going to russia to invest, from europe in particular. You do not have concerns where this is a country that could change the rules at any moment, so even if you are here today, tomorrow, Vladimir Putin could say new game . Can i talk about this crisis . I think vladimir has been more rational than people have talked about. They have not crossed a red line. There is a strong link between europe and russia, and there is no then if it, no interest, for someone like Vladimir Putin to change the rules for a bank like Societe Generale. We are there, relatively focused, and we think we can do good business. You said one of the keys is having happy bankers. How do you have happy bankers those that are for born and bred on red meat and capitalism in a country with a social president. First of all, Societe Generale is beyond france. After six years of crises i want my people to be happy to deal with her clients. I want people to be proud of and be motivated by the atmosphere in Societe Generale. It is a challenge. I must say we are doing pretty well. Atmosphere we are not talking about working at conde nast. A good atmosphere is being able. O pay huge bonuses no, no, no. It cannot just be that. Of course, you need talent, but beyond that you need people motivated by what they do, and i think that is the case in Societe Generale. Maybe it is more like this in europe, but i must say it works like this in Societe Generale and i think it is a recipe for success Going Forward. You do not feel that your bankers are motivated by their bonuses . Of course, everyone is motivated by renumeration, but it cannot just be renumeration. We need to build a different culture, and i think it works like this in Societe Generale. Soon do you think european banks are from being under one supervisor, the ecb . It is a reality. We are moving into this transition. The first of november, one regulator, will supervise the top 130 banks. It is a done deal. Do you think it will deal with crossborder consolidation . Be frank, so sure, to because there are so many in president s impedance to become bigger. , thank you for joining me this morning. A pleasure. Betty liu, back in the studio. Thank you. Miss hera. M. , do not exclusive intuitive Deutsche Bank coceo anshu jain. Moving and shaking this hour, ibms ceo jeannie were many. She has to deal with the company falling sales, and ill bloomberg has learned that china is pushing banks to remove highend servers made by ibm and replacing them with a chinese brand. All of this has to do with the where theng dispute u. S. Has accused Chinese Military officers of stealing secrets from american companies. Virginia rometty has enough problems there. Sales fell 20 in china without these new issues. Coming up, at ts big takeover of directv could still be fumbled away at it all has to do with pro football. Dr. Dre, and the 3 billion foul whyh rant that might be we have not heard anything about apple and dr. Dres beat. Stay in the loop. Were just Getting Started on this tuesday. Well, it has been weeks since we heard apple might i by beats, but could it be dr. Dres fault . It all has to do with his video in which they say dr. Dre will become the first hiphop planet. Billionaire. The forbes list just change. They need to update. The first billionaire right here from the west coast. Joining me for more is leo hindery, managing partner of intermedia partners, and also the Top Executive at the yankees yes network. Great to see you. Happy holidays, belatedly. Luckily i got to get a little bit of son this weekend. You look great. You look great. So do you care what you think about this vehicle video . Do you think that is why we did not hear anything . Apple is a company that is so proud of its image, and there are two extraordinary things going on. It is buying technology, when it has never done that. It invents technology. I think it stuns a lot of us that they would pay 3 billion for headphones. It did not make sense to you . It certainly does not move the apple needle. The image problem is something you have to be cognizant of. Who represents you Going Forward is at the forefront of your mind, and this young man might not be the idea apple ideal apple spokesman on this appliance, this headphone appliance. When it first came out, everyone said dr. Dre is edgy, cool, it is why he is who he is. Edgy and cool as dr. Dre, but is he edgy and cool as an apple spokesperson and an apple image . Its goodudience as alone. They are aggressive, young people, appealing to a certain audience, and are antithetical to other parts of the audience. I think the deal will go forward. I think they will reign him in a little bit. The video is not helpful for the apple image and that is paramount in their minds. Speaking about deals, what you think about directv and at t . The transaction is inevitable. Once Time Warner Cable and comcast came together, as i said to you, it excited a lot of down the transactions road involving google and facebook, for example, directv and dish networks, as another example, and here in new york x. Th viacom and tw these are all in play. Of us is i have never seen a macro deal, and this is a big deal, contingent on an action involving a third Party Outside of their control, which is the nfl. I wouldve thought that if it was so integral to their strategy, to what they were trying to get done, they wouldve initiated discussions with the nfl and locked adela before. Locked the deal of before. Why didnt they do that . I am not sure they were advised. At t, and directv, because it is contingent on their side. The package started in 1994 and 25 million a year. It is now 1 billion a year and what you have said to Roger Goodell at the nfl is what number do we get it again . Why not 1. 4 billion, 2 billion . It is a deal contingent on an uncontrollable third party, a commercial thirdparty. It seems risky. Is good for good health. Four Roger Goodell. Monday because the negotiations fell into his hands. Leo hindery is staying with us. Coming up up, why the Koch Brothers are going headtohead with republicans in michigan. A battle for detroit. Plenty of space in this skyscraper if you want to move your business. We will talk about the problems that one world trade center. First. Bloomberg. You are watching in the loop , live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. I am betty liu. Here is a look at the headlines china wants banks to replace servers from ibm with those made in china. An ipo is planned for your own next. Euro next. They operate the amsterdam and paris exchanges. The one worldrk, trade Center Skyscraper is cutting its asking rent by 10 . Released justeen months before its official opening. No private office 10 has signed a lease in almost three years. It is 26 minutes past the hour. Bloomberg tv is on the markets. Correspondent scarlet fu has more. Thank you so much, betty. It is time for futures in focus brent crude contracts are trading at a fourday low after the ukrainian elections where vowed tooshenko has wipe out the separatists. For more on the commodities, i am joined by dan baker. , why is the ukrainian election moving oil prices more . Derek dooley will things going on, and most of what is going on is in this country where there is an increase in supplies, where we are rushing into cushing and the gulf coast. That is doing is forcing crude prices here in the United States toward global prices, so instead of having a global price that is reacting immediately to geopolitical issues, for example, in the ukraine, instead you have a domestic price that is acting strongly and starting to catch up to the global prices, which is still very strong. Nymex crude is now at a fiveweek i am the moment. Michael, how are you trading oil . At weekly charts because it makes such a difference, i see a double 98 and is the same thing i saw in 2008. If we can stay within a tight range it looks to me like a bull flag. There will be an upside and ive seen a 10 move already and that is one of the reasons we are targeting 106, 108, and they were no mans land not that long ago. Oil futures are put in dollars per barrel, but each contract controls about 1000 barrels. That means if you buy at 100 104, and it 100 six, michael would have made a profit of 2000. Dan, what do you think of the forecast . I think michael is right. The risk is to the upside and because of the flood of crude into the gulf coast, it is bringing domestic prices back to the global price, and the magnetic pole will get the spread common, and we will see prices here at wti go closer to the 2010 price. Barclays put out aoil volatility will remain a record low because of the supply. Tame volatility look like to you when it comes to oil . Tight range where prices trade, but that does not mean prices cannot trend, in fact they have been trending higher. Libyan supply is getting cut. We still have a lot of interesting developments with the Petro Poroshenko elections in europe. The new russiachina gas deal, all of this plays in. We hear future traders talk about the life of the contract. Can you explain what they mean . This is the differentiator between stocks and commodities. You have monthly contracts, and when the month is up, the contract is over, so you have to be aware of that. Once it is over, you have to get out. Dan and michael, thank you for joining us. Betty, we will send it back over to you. Thank you so much, scarlet fu, on the markets. We have breaking news on durable goods. Michael mckee has those numbers for me. I am taking a look, and it looks like a reasonable number. Durable goods orders on the month rise by. 8 , and the forecast was 8. 7 declined. What is interesting is there. 7 declined. History of a climb in the first quarter. We have been waiting for companies to start adding to their capital spending. We do watch capital goods, nondefense, a long way of saying a business proxy, that was down 1. 2 on the month, but up 4. 9 on a threemonth annualized basis, an increase from the prior month. All in all, it looks good. We are moving in the right direction. Shipments were down. 4 . Somethinging to be that is not good necessarily for the first quarter, and should suggest that if we see more reduction they rise. We just need consistency in good economic numbers. When you look for consistency, you are not going to durable goods because they are very volatile, but markets will have to love this overall. Stay with me, mike. The city of detroit is inching closer to exiting bankruptcy. There will be a vote in the state senate as early as this week. However, a conservative Political Group backed by billionaire brothers charles koch and ed coke is not making things easy. My next guest is the person leading the charge, scott iserstom, and still with us leo hindery, a prominent democrat, and economics editor michael mckee. Scott, why are you opposed to this aid . It does not help pensioners. The city is sitting on billions in assets. This is a huge problem for the country. Over 4 trillion in pension liability. This is not just about taxpayers in michigan. It is for the country, and it could set a precedent. It is not really right when citys commitments of calories are sitting on billions of dollars of assets. What assets do they have . The Detroit Institute of art, airports, parking garages, over 1 billion in property. So sell those assets . Sell the assets, provide for pensioners. If you sell the assets, like the water system, you do not have the revenue coming in for the future, so how do you make it sus