Good morning, everybody. After a brief shift to yesterdays emergency meeting in brussels, and president obamas order on financial sanctions. Ryan on theto ground for us in gf. Kiev. P they voted to secede from the ukraine and join russia. It up by two weeks, clearly in a hurry. Said in kievtaria the vote was a farce. If you think about it, they have several thousand russian boots on the ground in the peninsula and as far as the regional authorities are concerned, they will go forward with this vote. Says it is the u. S. Not legitimate and they wont recognize it. We have seen this blueprint before in regions that want to break away. They declare themselves independent and have these kind of referendum. It doesnt mean that moscow will. Nnex crimea there is a separate set of legislation that would allow the government to do that. In the past, they have not done that. It does legitimize their promote their approach to crimea and gives them a stronger foothold. We had this meeting in brussels, harsher words from the eu than in the past. Going around their business think they have been supported gecko do they feel like they have been abandoned . Somewhere in between. They are hopeful they are going to get more support. It will not get anywhere in terms of this military intervention by russia. Bit cynical,are a perhaps. A bit skeptical that they will get all of the support that they need. There is a sense that crimea has been lost, Russian Troops will stay there as long as president putin wants them to. All they can hope to accomplish his bring law and order to the rest of the country and make sure those troops dont move into the east of the country. China has registered its first ever default today. They say they werent able to make a payment to bondholders. Some people are talking about bear stearns or even lehman moments. Is that overthetop . We have had billionaire draw parallels with what is happening in china and what is happening in the u. S. In the lead up to the Global Financial crisis. That comparison is not overblown. It is not just the Solar Companies that are at risk year. Ande are other companies inustries that are operating sectors with a lot of overcapacity. Some of these companies have bonds trading at levels that indicate they are also in distress. The question on everyones lips is which company will be the next company to default. Which will be the next tyras solar. There was a government advisor in china turn these companies zombie companies. Ith the debt to times equity these walking dead companies, their ranks are growing. They are feeling this is not the first onshore default we are seeing. A lot of commentators saying this is a positive development because it also means that the government is trying to play by market rules. This is just a 14 million payment. This is quite a Small Company and contained. They said this is a positive development for the market. It is going to give investors a better idea of how they should be pricing risk. Operating in a market that has never had a default before. Others said this is a sign of. Aturity and this is not going to spark a credit crisis. First publishing a paper on a Digital Currency that has become the background the backbone of bitcoin. Newsweek claims to have found the father of bitcoin but he denies it. Quite an exciting tale. It sounds like something out of a film. Car chases drew l. A. , a 600 million fortune, and denials to journalists. It is claimed by newsweek that they found the father of bitcoin, the pseudonym of the programmer or a group of programmers that wrote a paper and with the initial source code for bitcoin. 64yearoldis a and a Government Employee living in temple city, los angeles. They say he changed his name when he moved from japan and was house. Ted in his he said i have nothing to do with this at the moment. He said he never heard of it until his son called him and said he was being hounded by journalists. Newsweek is standing by their claims, the journalists saying i confronted him before i put my story out and said i am no longer involved in that and cannot discuss it. Says that is just a bit of confusion. It reads like a movie and they are a bit cynical. Is why many are saying did he change his name . Is an executive, this incubator for startup bitcoin companies. At length toas so remain anonymous, why did he put his real name on the top of . Hese codes who has tried to do everything to remain anonymous. Interestingly, the only way we are going to know who the real is byi nakamoto is is finding his digital signature. Is this 64yearold physicist the real Satoshi Takemoto . Story goes he wanted to created because he was cross with the Foreign Exchange story train sets that he was buying in britain. Buting wrong with that, thats the reason behind the whole thing. He says i am not associated with that anymore. Lets move on. Not a lot of confidence going into these forecasts. You need to be a meteorologist rather than an economist to see what is happening here. Guess. Ve got to look at some of the ranges. They are pretty large. Another thing would be to change Monetary Policy based on this. Look at the mention of the word whether. Talking about policy changes, whats going on here . Used nevermind the data thats been. The data to come we may have to accelerate because we might be behind the curve. I think it will be fascinating and fair to say he is not an outlier of the Federal Reserve. You so much, the very latest on the u. S. Jobs. Coverage later on and the Weather Forecast for you. Talks with the white house to ensure president obama and other Staff Members continue to use their blackberry devices. Trying to shore up the companys base of heavy email use in government and business. South african elections are fast approaching. The president th ahead of the vote and he says the government must push for more black ownership of businesses. We have made a dent. The carrier is trying to conserve cash. Developers create an interactive childrens story about compassion and forgiveness. We want to look at the role of the Tech Community during the crisis. With all the gloom and doom, you can be forgiven for missing what is a very Thriving Community of startups. By an interesting startup, to say the least. A ukrainian businessman, i want to ask you about independent square. Troops providing food, medicine, money. Creating barricades. It is not about throwing molotov cocktails. For me, it is not an option him out. Nted he is the kind of man that sees other people in his country like cattle and not like human beings. [indiscernible] they are kind of in at. It there is a mobile walkietalkie. The influential lives of the russian government. It is just a coincidence that it was published. We tried not to have hate in our hearts because they hate just makes us more evil. Its in the apple store. Yes, the app store. It will work for every kid around the world. We have to let our workers not go to work some days because it is very dangerous on the streets. The district [indiscernible] we dont have very much time but i think that a Little People would be surprised that there are so many startups in ki ev and the ukraine. We have talented guys here. Highlevel education. Working out in kiev and in general. We will continue this morning, not just the events in the ukraine but how businesses dealing with it. 19 billion is a big number to shoot for. The goaldomination is of the italian jeans maker. We are speaking to the family behind the brand about doing business and taking fashion cues from lady gaga later on. Time to look at the hot shots. The silver medalist won the gold. The finals being held in switzerland. The International Speedway in florida has been turned into americas toughest, longest, and the most grueling. Jumpstains 40 monster using 500 tons of dirt. Things will get pretty muddy when the race kicks off on saturday. And the australian challenge for the americas cup. It will take place in the United States in 2017. I may give you the early moves in european markets. Trading losses about one percent. One number, a big market focus. Number,comes in at that about six and a half percent at the Federal Reserve. It doesnt even matter anymore. Take that at the high for this year. About twoyear highs right now, that is key. Therell be tough questions. Surprised to hear him talk about it yesterday. The chief executive serves up his ideas. It has been called the first true british sensation on par with google. We will speak to power tag about his startup. Welcome back to the pulse in london. The top headlines. Hours after newsweek identified Dorian Nakamoto as the bitcoin kreider, the 64yearold physicist was chased by reporters through l. A. He fled to an Associated Press bureau where he denied any role in the Digital Currency. The main reason i am here is to clear my name that i had nothing to do with bitcoin. Nothing to do with developing. I was just an engineer doing something else. China has registered its first ever onshore solar company. They were not able to make payments due until now. Returning to russia and a provocative step. Speaking at the referendum. Lifted to a europe editor. They made it very clear that russia engages in negotiations. In order for russia to do that, they need to recognize the government. It is being very inflexible here. The second thing to watch out. Or, it is this referendum we find out there has been a that crimea starts calling itself part of the russian territories. How serious our economic sanctions . This is a line not clearly drawn by the European Union at certainly if we see Something Like that referendum going ahead, we will get those numbers put into place. Would that constitute with the European Union calls a further destabilization of the Eastern Ukraine . Destabilization, not sure if they will bring out that thread of the sanctions. Support for the incumbent national congress. The mining strikes, a big problem for him. He did answer our questions about the mining strike. We see share prices falling. There are 60,000 members and we know it the arguments are. Aboutbasic salary is 1000 at the moment for entrylevel minors. They want that to be more than double. There will be a 44 increase by 2015. The gap between the minors and the unions are pretty large. They are trying to find a solution. It doesnt sound like you have many answers there. [indiscernible] they must consider if the company pays the wages, what will happen to the economy act oh the other side of the employers. If they stick to their guns, what will that do . How are they addressing this . You mentioned mail elections. They are trying to address the seventh of the population, saying we need to increase black ownership in the economy. And you can deal with this to empower people. They must continue. How do we bring in others into that system . Empower people properly. They have been trying to transfer company stakes to black investors come a but that clearly hasnt worked. He can get very popular, and economy that is pretty dramatic. A story that we will watch on bloomberg tv. The Credit Facility with a possible ipo, said it to be work with goldman sachs. They go straight to customers living rooms. The bartender will make my ties and more for you. For the first time in its history of a Public Company not celebrating that. We brought you an interview with the companys rock n roll founder. I and the artistic director of diesel. I have been the stylist for four or five years. We are always developing new techniques with to be more comfortable and different. My favorite. This will change her life. It is half jersey and half denim. And incredibly comfortable. You my love this one, for example. They have been associated with the alternatives. Up next, we will bring you more from our special series on diesel. You would be crazy not to start a company in italy. His own printer entrepreneurial culture. Before the break, we were hearing from the artistic director, a flamboyant character. Lets hear from the ceo that owns the italian brand. This man is thinking about expansion. Diesels Flagship Store is in italy. The Denim Company began 35 years ago using the name otb. It bought a stable of brands and has a yearly revenue of nearly 2 billion. The man at the helm is air to the diesel thrown. Diesel throne. Now he has his sights set on global expansion. We will probably go after brands and companies that positioned himself in a more contemporary and premium segment. His ambition goes to show how positive the group is feeling even though italy is struggling. Is something that is killing everyone. Taking their lives away because they cannot face that situation anymore. Business is also personal. The group is expecting doubledigit growth and with the family name on the line, he takes a longterm view. Father has this feeling every morning when he wakes up. He doesnt think about how much money he will make today. He wants to know how to make this bigger and maintain the jobs. The boss of otb thinks you would be crazy to start a company in italy. Thinks it is the whole western world stifling entrepreneurs. He is also the ceo of an Investment Firm that manages about 9 billion. Great to have you on the program. I see a lot of entrepreneurship that is striving. Buy a lot of stuff from Small Companies and i hope that they become big and make money. Ways of beingany an entrepreneur. The ceos of large corporations should be entrepreneurs as well. Be captains of industry 20 or 30 years ago. Now they are producers of quarterly results. Research andess in development and capital expenditures. They are not investing in the future. Should behave like entrepreneurs and owners. Andf you want to make money keep shareholders happy, you also have to think of longterm growth. They tried, but whether they are a failure is another story. 20 years ago, the average holding. Holding period was five years. At worst, theyll be there a few seconds. There are highfrequency machines. Focused on this, how do you behave . You are focused on the quarterly results. We need to change the incentives of shareholders and the behavior of investors. Changing the behavior of ceos is something that we need to do. The boards will be there not preserving the status quo but encouraging the ceo to make bold decisions and they should be incentivize themselves. The next step you make is talking about the fact that this is part of the problem that the west faces. I look at what is happening in the world at the moment and there is almost an and assure revolution taking place. The world of tech is changing everything. Altered. G is being the bulk of that innovation is still coming out of places like silicon valley, stanford, down the road. The new companies that are changing the world are still owner managed when they go public. Take facebook or google. Hp, a veryve different picture. Company that has been around for a while. I am just saying if youre able to maintain in the world of tech, a greater link between ownership and management, you have people willing and able to invest. What if ceos just had better communication skills . They are veryve fast turning around hedge funds. The brand that will grow, it is a kind of base that we know and understand. If the ceo can share his vision for the future, it is a little bit down this quarter but trust me, down the line, it will be great. If they communicate, the markets will follow . I think it is not communication. I think it is the fundamental issue of the investment community. Managing the fund and your performance is couch elated on a quarterly or yearly basis, you will be prompted to push the companies to produce very shortterm results and much less erested if you are an activist investor. Ask if you are any kind of investor. You will be assessed with getting that money in your fund. You will be putting a tremendous amount of pressure on the ceo of the company to produce shortterm results and that has to change. Very briefly, are you certain that the markets will enjoy these advantages . At one simpleook statistic. Asia. , including0 listed still under the owner manager model. The ceo that is still an owner or family of the owner. Companies it works, not necessarily at the top. Book. K up the it is great to be had. Thoughtprovoking. And energyefficient makeover after the break, we found find out how going green rekindles the flagging sales. Welcome back. Youre watching the pulse. A longtime favorite of the british and their dogs, that was until the recession. Rising fuel prices forced families to cut back and since then, this british brand has turned its focus to energy efficiency. Going green is giving it a bit of a boost. Sales grew 10 last year. I martha stewart. Today, i would like to talk to you about the aga cook stove. Performers, Prime Ministers, and even royalty have joined the club. Something exceptional about the design. Secret is the dent castiron shell that absorbs and retains heat. Food is cooked by radiant heat and not heated air. A big switch and the fuel type used. It you go from having oil and a product that is largely electric. Physicistdish invented the allinone cooker in 1922. It was brought to britain in the 30s and reinvented by a team of engineers and marketers. The earliest and most successful salesman, original adman and world war ii spy david ogilvy. Assembled by hand in the english midlands. Sales plummeted during the recession forcing the company to lay off 20 of its workers. It has been a tough few years. On the factory floor, transition is afoot. These new cookers contain electronics. Off, controlled by a smartphone and they are selling. The modern one is the best we have ever made. That is why we think it can go from being a successful niche u. K. Brand to a more global product. That cage there, the best cheese toastys ever. They are so good. Worth the money. Back from the pub, a cheese toasty on top of the aga. Theyre trying to go for the urban. I remember them being pretty heavy going in and out. The first word is up next. And the seco