Live from Bloomberg European headquarters in london. I am guy johnson. Francine is off today. Lets tell you what we have got coming up. We are live with carlsbergs ceo. With clashes in the ukraine escalating, we are going to talk to him about the brewers big presence in this country and what it means for him. Is istails on what happening in the ukraine, the violent clashes taking lives. The number of dead continues to climb after the bloodiest episode of the threemonth standoff. Ryan chilcote joins us with the of contextnd a bit that we need surrounding these stories. These pictures are amazing. Ring us up to speed with the latest development. Bloodiest day in these protests in three months now. Bloodiest day in ukraines 25year history, 25 people killed, 350 injured. Both sides increasingly entrenched. Last night we had the Police Telling women and children to leave the square. We had the Opposition Leader calling men to the square to defend it. Another leader says they wont leave it until this is over. We now have the European Union weighing in. The polish Prime Minister has been addressing his countrys parliament. He says this may be the first hours of a civil war. He says the countrys existence is now in doubt. It is now time for eu sanctions which he will take to the European Union. He says the solution doesnt look like it will work anymore. It is time to work with the opposition, hold John Ninkovich responsible. Anukovuych responsible. There is talk from the polls about the need for a rescue effort. That is days, weeks, months away. Political is stability or some kind of stability in ukraine. Financial Market Reaction to all of this . 23 ,e bonds are now above pretty extraordinary. A record for the countrys bonds. Yesterday, yields declined in the morning by about one percent after the russians said they were going to resume their 15 billion aid program for the country. That lasted for exactly one hour as investors focused on political stability. It is not about the 15 billion of aid ukraine needs anymore to repay its debt to the imf and private investors. It is about stability in the country. It is clearly out of control today. Reserves are being burned through pretty quickly as well. It is going to be interesting to cover all the angles of this. Thank you very much indeed. Lets move on to our top corporate story. Peugeot shares rising this morning. They are selling stakes to dongfeng and the french government later this morning. We will speak to the companys chief executive, Philippe Varin. That will be his first interview of the day. The details of what we have learned over the last 24 hours manus cranny joins us. With thekick it off shape of this deal. The question for shareholders is whether it is capitulation by peugeot in terms of going on this i suppose tripartite. Dongfeng is coming in with capital and the french government coming in all on an equal footing of 14 shareholding. Were going to have a rights issue. They have shored up their defenses in terms of access to finance with the banks. The capital has been taken care of. Dongfeng is the partner of choice. They have tried to sell other assets rather than turn to dongfeng. What are they getting out of that deal . We have got research and development, that is what were hearing mr. Varin saying. Technology sharing for dongfeng. The three of them are all in. The capital is in place. Peugeot onng to put a better footing . We saw better numbers this week. Deliveredd as renault and that could be a problem moving forward. Talk to me about the challenges. Sales a little more stable but you now have three parties involved in the company that is struggling with a lot of challenges. Often times when you and i have covered the stock, there is a couple of facets that we refer to. One is the amount of cash burn. They are reducing it. The target was to reduce the cash burn by 50 . They have done that with aplomb. They have narrowed losses. Those are better than market estimated. The image you are looking at now is one of the new models, the 308. This is doing well in the market. They have got a model that works quite well. They have a car that is working. I will leave you with this thought, at the end of a dynasty, the family at peugeot have lost the battle. Think of what is going on at bmw. I stille andrea agnell sitting on the board and you have the quandt dynasty still there. Klatten still in their. Really a historic day in terms of the changing landscape of dynasties in europe. Thank you very much indeed. We will be live with peugeots ceo. It will be his First Television interview of the day. Bae says theplans, u. K. And saudi arabia have agreed on increased prices for typhoon jets. Whore joined by rob wall covers defense and aerospace for us. This is the transaction we have been waiting for. The company has been waiting for a very long time. They were first hoping to get this deal closed in 2012 and it didnt end to complete. It looked like it might not happen in 2013 but this has just happened before fullyear results come out. Forbae, big deal for bae,. Terms for in pricing these 72 airplanes. They agreed to sell in 2005. Why did it take so long . Essentially, saudis didnt want to give up that much money. He knows the middle east and he knows how to haggle. Implementations for the program . Andt is good news for bae euro fighter typhoon in that area. There is talks that saudi arabia may place a followup deal for more planes. Getting through this pricing phase was critical to get to the next stage. It is key to get typhoon production past 2015. Then there is qatar, bahrain, kuwait. Theyre all looking at fighter jets. That puts the results tomorrow in a slightly better light. We will look forward to those numbers. We will see later, thank you very much indeed. Carlsberg shares are rallying today after the brewer Beat Estimates. We are going to speak to its chief executive in the next hour. David tweed joins us from berlin with the breakdown. Lets look at that breakdown. There are three pieces of good news that appear to be driving the share price. The earnings were better than analysts expected. We have seen a 33 increase in the dividend. Finally, market share gains in all three of their main regions where they are operating. If you look at the share price, that gain was the biggest gain in your the 18 months. It only takes them back to where they were in midjanuary. Reflects concerns about what is going on in some of the biggest markets. You mentioned the ukraine, that is an issue. They have a 28 share in the ukraine. It will be interesting to talk mr, rasmus ssen later about that. Taxes are going up in russia as well. The government there wants russians to drink less. There is Something Else to look at. Talk to me about this position in asia. Asia is kind of where the company is refocusing. We have seen a change in the structure of the company and the way it is owned that now allows them to do more deals further down the road. Asia is the big focus. What are we hearing on that . You are right, we saw that in the Carlsberg Foundation which allows them now to become a lot more flexible when it does come to structuring deals, particularly takeovers in the asiapacific or in asia. Just the last day of december, they finished up by buying eight breweries in china. Hat is another area i am looking at what the chief executive said in his statement today. The focus is on improving the russian business but also doing what they can to increase their asian business given the fact that that is an area with so much growth potential. Much indeed,very david tweed joining us from berlin. Carlsbergs ceo is joining us later on the pulse here on bloomberg television. What else is on our radar screen . The fed has approved new standards for foreign banks. It requires lenders with at least 50 billion in assets of u. S. Capitol. American hustle is nominated for 10 i cut of the awards. Films rose talks to the director. It was amazing. I love him. It was based on a real midwestern character. There were agents in the wild. It was all true. That chemistry tammy was electric. Make sure you check it out. You can see it in full tonight on bloomberg tv at 10 00 p. M. U. K. Time. Diesels owner has declined to rule out a move to cavalli. That is after a report that cavalli has helped in talks with a private equity firm. Diesels chief executive s aid cavalli could be interesting. We want to position as an alternative to luxury goods. Before we go after companies that position themselves in the more contemporary and premium compared to the top luxury or basic casual wear. Coming up, is there any data the nsa cant reach . Chancellor Angela Merkel hopes so. She is discussing the possibility of a European Network with president hollande. We will begin to whether it is feasible and what it could mean. See you in a moment. Welcome back. You are watching the pulse. Ela merkel meet friend saw Angela Merkel meet Francois Hollande today. Theyre discussing a network that would shield data from the nsa. Is that feasible . Which internet providers could benefit . Lets talk to the president and ceo of good technology. Securityide mobile solutions for companies and i am assuming it is good technology. Good morning. Look, Angela Merkel, Francois Hollande, i suspect they are being well advised. Theyre coming out and talking about the fact they want to have a European Network. Is that viable . Is it a realistic option . Is this just them pursuing politics . Reallynt think we have seen enough information to know what is really being defined as a European Network. It is certainly an ambitious statement. There is lots of different ways to address how to protect your data. Looking at the network could be one option. Is this the right place to start . It is really ambitious. I dont quite know how you would architect Something Like that. I think there is a number of countries or organizations that have tried to control the internet. It ends up being slightly risky. We will see what comes out. We dont really know. How much has the debate changed surrounding security over the last 18 months . , the conversation has escalated. Gone probably into every boardroom in most major companies. The conversation about, where is your data and who has access and are you taking the responsible set of actions to protect your data . There is no denying that people want data on a variety of different devices. Are you responsibly looking at not just managing the phone but managing the data securing the data. Where is the weakest point . I dont know there is a single point of failure. You have to sort of look at the complete workflow. I canimplistic rethink, get my email or do my Internet Banking it is not just the application. It is the data that is transmitting between applications. If youre looking at an attachment in an email, this probably three or four different applications are going to touch that data. If you are the owner of that data, have you managed it in a way that is controlled . When you look at blackberry was always the company when you thought security for mobile phones. I guess this is a window of opportunity for the company. Is it creating new opportunities . I talked to a vc guy the other day who said he had never even looked at security before. Now it is all they are looking at. How sophisticated is the echo system . I think that last year if you would have looked at the ecosystem, you would have seen and lots of tiny features as opposed to solutions. I think you are starting to see that settle out of little more. Some more Mature Solutions evolve as companies that have deployed solutions broadly to secure data were closed. I think there is an opportunity and a lot of confusion. , do you want a secure phone, secure data within a phone . The second you allow a user to install any other application, there is some increased risk. Managing the device enough or do you have to get in and put controls around the data . Is the biggest challenge the fact that we have got clunky but secure phones on one side and systems that arent userfriendly and hard to work with, and userfriendly but terribly insecure systems on the other side . I would argue that you can have both. I think we have achieved security criteria on par or better than some of the hardware secured virgins you see. I think hardware secured versions you see. Something you create that is not usable and is clunky, then the user becomes the liability. The perch and you are trying to protect becomes the weakest link because i dont let you open the attachment. You will forward the attachment to someplace you can open it. You have to focus on both. If you dont allow users to put that balance between personal and work data, company data and their own data, protect their privacy and also protect your integrity, they will find a way to work around you. The sophistication of users today is unlike anything we have seen. Just a quick final wrapup, what phone do you have . Are you prepared to Internet Bank . How secure is that data in the world that you live in . Which phone do i have . I have a lot of phones. We run across android, microsoft, windows mobile. We take the approach that all phones are somehow compromise. So we selfcontained our Security Model within the platform. We looked very broadly across the market. That also applies to the internet of things. The athletic devices are the cars, the home Monitoring Systems that you have. As people are sending applications and data to these devices, there is risk. And there are other tools that will allow you to contain that data even on those different devices. A couple of weeks ago, we saw our first and since of a malware attack from a refrigerator. I read about that as well. I was fascinated to see the internet of things probably is the least secure elements of many of these networks. It is being taken more seriously. Increasingly our customers are talking about security for Business Partners and all of the other devices. I will never look at my fridge again in the same way. Thank you very much indeed. What have we got coming up for you . A booming business. We will check out a sound system that is 100 times louder than the roar of a jet engine. Get your earplugs ready. See you in a moment. Welcome back. Time for todays hotshots. Around tight corners at high speed. Jack miller posted the fastest time of the day. It was a dramatic sprint at the opening of the 2014 tour. Cyclists battled for the opening position over the 105 meter stretch. Out the skyhigh view from singapore. The Aerobatic Team put on a display of highspeed skills for spectators at the Singapore Air show where anyone within a few miles of the event. Nice shots. Lets find out what is happening with the markets. Not exactly skyhigh this morning. Manus cranny has more. We are taking a little bit of a pause. We had a threeday rally that has momentarily stopped. The bank of england is going to tell us what they talked about in a couple of minutes. John ferro will cover that story later in the day. Moment have a look at the u. K. When it comes to retail, there is in edelman called mike ashley who runs a Company Called sports direct. They pack it high. They sell it at various prices. Lassiter,byside with reebok sidebyside with low brands. Highvolume, high margin business. Good numbers coming in today. That is bolstering the u. K. Story. In paris, it is peugeot. That has fallen off the leaderboard. Lafarge came in with good numbers. Credit agricole didnt eat but the markets seem quite happy with the dividend story. One, the first one you had since 2011. Banking shares, there is our shock. Seeing that come back virtually unchanged. Keep an eye on sterling. Will it stay strong as we see what the unemployment numbers are in this country . You kind of wonder whether unemployment is the new metric that we focus on. It has been the new metric for a while. U. K. Data coming out, bank of england minutes, we will get some insight and see you in a moment. Welcome back. We getting breaking data out of u. K. 7. 2 , 90 on the bank of england for both votes. Fairly mixed up numbers, lets get some analysis. Just looking at the on implement rate, we have a tick higher at 7. 2 . This is a threemonth rolling average. In the month of november, it was 7. 4 . 7. 1 . Ed you see sterling trading lower on this one. Thing i am looking at is the quality of the data, the underlying data below the headline data. If youre looking at weekly earnings, you see a tick higher to 1. 1 . It is slightly better than anticipated. Encouraging but still below the rate of inflation. This is a key metric. We are talking about capacity, weak productivity. Inflation might be coming lower but wage growth isnt matching it just yet. That is a concern. Those two metrics are not mutually exclusive. If you see rates push much higher it will feed into a higher number as well. If you are worried about guidance, look at the minutes. They agree, no change to current policy. No knockout was breached and guide us. Unemployment has take higher. It hasnt breached that seven percent threshold. Right now you have sterling a little lower on this one. A lot of room to keep rates lower for longer. The output gap maybe even bigger than anticipated. Lets get some more perspective. Lets bring in a bank economist. 7. 2 . What we are seeing is payback for two extraordinarily strong months rent employment has fallen by 60,000 or 70,000 per month. It looks like a breather after some strong months. Does the trend resume after that or are we down to a level where we bounce around . Claimant counts are still falling. It is a good sign suggesting some cooling. Lloyds bank job prospects have been flying. They say unemployment should keep going very well. I dont think it is a reverse completely. Talk to me about wage growth. To my mind, that is the key thing. We need wage growth north of inflation. How do you see the wage growth story developing if the bank is focusing on that too . I think you are right around march and april. That is bonus time. This time last year, you had the top rate income tax dro