Economic sanctions look unlikely. They are saying the issue is not just a lack of consensus. So far, the only consensus has been avoiding the topic altogether. Thank you. We will have more throughout the day. We are watching retailers. 2013 as a great year. The chairman is saying that there is an increase in profit now. It is a 130yearold rival. Say that this recovery is it no way certain. Investors have been betting big, though. Is going up 1. 2 . They had a fantastic 2013. We are getting some news. We think it is breaking news. We have more complete news. Australia is now sending surveillance claims to see if objects in the ocean along to a missing passenger jet. We will keep on top of that news and the press conference in 1. 5 hours. We have a lot of components. We have Corporate News and janet yellen. We have a stress test today. What else are we watching. The focus is on the Federal Reserve. There are surprises. Lets see how it is impacting europe overnight. You see the nikkei going up and you see the shanghai compound. We are expecting this to play out into a lower open in europe. Let me get the map of where you. The European Equity markets are down right now and it is down 1. 5 . It is down. 7 on the dax. Not just because of tapering. We expected that. Is being priced in and the change could come sooner than expected the change could come sooner than next fact it and more aggressive. Most of thefor majors and look at how the dollar moved. 7 . It is the biggest move since august. This could be interesting. The euro dollar fell. Spain yesterday. This is the bailout that the eu needed. It is something that a lot of people are talking about. But thank you with the latest on the markets. For more on the chat, lets welcome max king. Great to have you on the program. We are getting pictures from merkel addressing parliament before heading to brussels. The ukraine is still very much in the center. We expect to ratchet up sanctions on russia. What does that mean on the portfolio . But it does not mean much to the portfolio. I suppose that the longerterm nations how a group of is opposing selfdetermination. This is a western back to. Coup. That is more on the political side. You say that russia is cheap. It is cheap at it is cheap for a reason. We are going to have big economic sanctions. Isthe reason that russia cheap is because of the domestic savings industry. T will remain cheap that is why it is one of the cheapest markets. You are saying that no matter what sanctions are put on, they are going to Keep Holdings in russia. It should be a small part of the overall portfolio. We like those markets and the value is low. There are signs of a turnaround in equities. The problem with equity emerging markets is that equity seven falling in the last few years. The emergingght, markets will do well. It is a job of bottom up stockpicking. Would you buy assets in russia . Moderately. We are stepping up exposure. Such as . Would you not investor radically. We do invest in Companies Like reassuring expensive qualities and Major Companies that have corporate subsidies. How much of a handler they have on the economy . We dont know. No one knows. We dont suspect that they have a handle. You are fine with china . You think that the economy is taking care of . Thehere is no doubt that economy is slowing and needs to reform. That will be disruptive. Happen, theynot will have Serious Problems down the road. Markets, it is a bright side and were trying to avoid it. I maintain that position. I cannot think that we have hit a controlled environment in china and in emerging markets, i am more interested in latin america and india. It is emerging markets where you have to to be focused on companies and regions rather than overall bets. Has pressure on those markets. That is baked into markets that theyis nothing say or can say that can surprises. Yearis our view for this in the first half of the year. We think that it will be a flat first half of the year. The least because of the earnings forecast coming down. We need to see the forecast it was. Thank you so much. Talking more about the hot topics. Here is what else is coming up. Update. Llen will we will have more on that next. Welcome back. In london, this is on the move. Phone,streaming on your your tablet and bloomberg. Com. We are checking the hang seng index. Is in a bearex market after a drop. That is what we are watching out for. That the client is in two months and it means that the threshold is with some traders. We will keep an eye on that with certain investors on the market and we will have reactions to it. Janet yellen held her first News Conference and took the markets i surprised. We are joined with the very latest. Noisecount all of the over forward guidance. We even got a mention in a statement for the first time. The market moves for one reason. It is expectations and Economic Projections. You see the series of dots where they think the rate will be at the end of the year. Percent in 2015 and 2. 25 in 2016. It is up from december and the forecast. Janet yellen came out in the press conference and try to talk down. It did not work at the time. The market was moving. How much weight can we put on the dots . Know who is you and which belongs to which official. The firston is when rate hike this. It is hard to define. Know, it means six months or that type of thing. You know, it depends on the statements in what conditions are like. Six months. Was it a stumble . Bernanke saying that seven percent was when he would end. Its not like something she will back up on. They will have to get moving eventually. Thank you so much. That is the latest on that. Still with us is max king. Thank you for sticking around. We talked about janet yellen and you said that they should be on the markets yes. Quantitative easing and Interest Rates are a return to normality and reflects economic backgrounds,. Revenues, higher corporate profits. What is your favorite play at the moment . Is it attractive because it is cheaper . Gene thatt particular i am not particularly keen im not particularly keen on making place at the moment. We have a bias on midcaps this year. News,terms of Corporate Companies are being adversely affected by fx. Is a bigger issue. We do not need to worry about it too much. This is one of your favorite stocks as far as im concerned, it is for a long span of time. Do you prefer the United Kingdom, in general . Europe has done well since last year, compared to the United Kingdom europe. Ry is coming in there is no real sign of that. We think that the u. S. Is more attractive. We are tilting towards the u. S. , rather than europe. Tll tell it europe ailgate europe. In a more dynamic economy. You will get what you pay for more dynamic economy. You will get what you pay for. We are looking at beneficiaries of corporate chains and companies that can benefit from the change. Ch like google and amazon. You look at a trip advisor. Technology. Ng they have done well out of that. They have fallen behind. You are looking for change coming from technology. You are looking for disruptors are companies that are quick to adapt mobile technology. I prefer adapters to disruptors. I am not adverse to disruptors. Certainly adapters. It is worth a modest exposure for a disruptor. You have to have confidence in the disruption technology. It is a happy Hunting Ground for us. But thank you for all of that. Story that we have followed for two weeks. The us trillion authorities may have found signs of the missing malaysia and flight. Paul allen joins us on the phone from sydney. There is an investigation into debris in the ocean. Tell us what we know. So far, nothing new. There are airplanes heading into the area. Zealand one from new and a poseidon plane. There is an australian arriving there and they are looking for what the Maritime Safety authority cautiously describes as a lead. Debriss of the possible of the Malaysian Airlines was rogan by tony abbott one parliament spoke this afternoon. He told the parliament that they were checking on objects that were seen floating 2. 5 kilometers south and west of perth. He issued a word of caution. New and credible information has come to light in relation to 370. Earch for mh the australian Maritime Safety authority has received information that is based on satellite imagery and is related to the search. Analysts analysis of this, objects have been identified. \ shortly after that, the australian Maritime Safety held a conference. Objectsf the describing how do they describe the objects . They were spotted by a satellite and they are low resolution. Safety describe an object 24 meters in length. It is the sort of thing that you would expect to find floating in the ocean. These things come off cargo ships more often than you would imagine. Difficult and the object may be hard to locate. It is related to the search. To seee flying overhead if they get a higher resolution image. There are four carol planes into ships on the way airplanes and two ships on the way. When we have a better idea . They will hold another press conference later tonight in one hour. Were not expecting them to announce that they have found anything significant. It is an update. They will issue a confirmation today, tomorrow. They say the weather is good and the visibility is poor. The objects are moving around kilometers south of perth. It is difficult to imagine a of the world. Part this could be a lead or a false lead. Coming up on the program, the conveneinvestors will today. We go to the hightech summit next. Welcome back. I am francine in london. Were posted that missed analyst estimates. The Worlds Largest cell phone spending accordingly. Earnings missed estimates. Investors will get shares for each one. The ipo has made it harder to attract individual investors. Selling as much as 40 of their state of ali baba they are trying to boost ad sales. They are doing research in online advertising. Onto retail. Company shares are rising today after claiming they had a great 2013. Caroline hyde has been watching the retailer revolution. It is all about the online offering. It is amazing. Moreyearold is now profitable than spencers. They are doing a good job at eating up profits. Investors have been betting on them for five years in market capitalization and the overall value is seen as higher. Have catalogs. Thes,u knew how to get close it has retailers offering it the next day to the store. They dominated it online. They did not slash prices in the runup. The customer knows what they are getting and they are getting bigger. Wherere going into a home and looking more department storelike. It is amazing. The chief executive, financial director, sales and marketing director. If you are not furnished, you do not know. It is everyday clothing for work. It is 20 pounds for a top. Talk to me about burberry. This is the highend side of u. K. Retailers. They say that they had a good year and to about for the economy. It is clear that theyre having a good year. A creativeot have director since last year. It is an awful year for them. Thank you for the latest on u. K. Retailers. Russia claims victory over crimea. Well have more. Welcome back to on the move. Im Francine Lacqua. Now we are 30 minutes into the trading day. Acrossseeing pressure the board. Certainly, this is what the european indices are doing. Down. Otsie do the ftse down. X is ignore that move in the grain. It is at 9240 points. This is a victory for currency. Yesterday we heard from janet yellen signaling that benchmark Interest Rates could rise six months after the central bank and bond purchases. That is what is weighing on markets. It is having an impact on euro dollar. These are the Bloomberg Top headlines. Yields on twoyear treasury notes have climbed the most since 2011. This after investors seized on comments from janet yellen barring cost could start rising around six months after it stops buying bonds. In her First Press Conference as fed chair yesterday, she emphasized the fed was not altering policy by dropping the 6. 5 unemployment threshold. To ahinese stocks rose twoweek high after china says it will speed up measures to stabilize growth. It will allow Property Companies to raise money through share sales for the First Time Since 2010. Cabinet says it will speed up Construction Projects and other measures to support the economy. Australia is sending surveillance planes to check whether two objects spotted in the indian ocean along to the missing malaysian jet. That is according to tony abbott. He addressed lawmakers earlier today. New and credible information has come to light in relation to the search for Malaysian Airlines flight mh 370 in the southern indian ocean. The australian Maritime Safety authority has received information based on satellite imagery of object possibly related to the search. Following specialist analysis of the satellite imagery, two possible objects related to the search half but identified. Have been identified. Ukraine calls his troops from crimea and reinforces its eastern border and as all eyes turned to the west response. Ryan chilcote is here. What are we expecting today . It is interesting. Just as quickly as russia is moving to annex, crimea the European Union is scrambling to embrace ukraine. Remember that trade deal that ousted president yanukovych . Kicking off those violent clashes in kiev. The ukrainian Prime Minister will sign in brussels tomorrow. I caught up to him. Our protests started with the pros european slogans. Dream. Have their and this is the first step to execute the dream. The dream for a better life, dream of dignity, justice. Dream of values instead of value. So this is a very solid and historic step for my country. Nd as it isolid a stored as it may be, ukraine is financially speaking staring into the abyss. It owes 10 billion by the end of this year alone. I caught up with the eus Economic Affairs commissioner and he told me there is a recognition that they need to move more quickly with aid. Have a listen. We have actually already 600 million disburse immediately once there is an agreement between ukraine and the International Monetary fund on a new imf program. There is a mission on the ground in kiev. They are supposed to wrap up their work tomorrow. They extended their visit. Theyre working on a program, but at least for the time being, it is just a pledge. Francine . Ryan, what are we likely to see in terms of sanctions . We have been speaking to a lot of investors and it depends on how aggressive they are to see whether russia will feel the pain. Very interesting. We expect to see some kind of expansion of that lack list of russian and crimean officials subjected to asset freezes and travel bans. What we are less likely to see, and this is based on eu leaders, is fullblown economic sanctions. Saying that not only is there not the kind of unanimity needed for those sanctions, the unity we are seeing among leaders is in their desire to avoid the subject altogether. We do have the g7 meeting next week or it and i did say g7 because they have not invited russia. That will be on the sidelines of another summit in the hague. We could get some action then when it comes to economic sanctions, but for the time being, they do not look like they are in the cards. If you look at the russian stock market, that is when investors are expecting. Because if you look at monday and tuesday this week, the biggest twoday rise in four years. Climbed back half of the losses that russia incurred when Russian Forces surfaced in crimea. They are writing off the idea of full blown sanctions. What were hearing from eu officials is that investors have not gotten it wrong yet. I guess the problem is that sanctions require the agreement of all 28 countries. That consensus building. Russia can move much quicker. We know who the main stumbling blocks or what countries would be most opposed to it in terms of what we talk about eu in economic sessions . Thing. Et freezes one economic sanctions, that would be the most difficult to gather consensus from everyone. A couplethere are issues. You take Great Britain and germany. They have votes just voiced support for ratcheting up the sanctions, but they also have their respective interests they want to protect. Germany exports 50 billion worth of goods to russia every year. Their air interested in protecting that in keeping the energy they get from russia flowing to them. Of their natural gas needs. The big stumbling blocks comes in that department where yes, they may be up for sanctions, but they cannot agree on what sanctions. Even those that do think that the eu should move forward. Then you have countries like cyprus, which still relies on russia for a lot of financial investments. They are against ratcheting up sanctions. And you have several countries on the fence like romania and hungary, that just are not convinced that just because you financial pressure on the kremlin that will lead to president putin changing his foreignpolicy in ukraine. Ryan, thank you so much. On the ground in brussels. Coming up, alibaba wants to tango. The Chinese Company is making the latest big bet on messaging app markets. We have details after the break. Welcome back. I am Francine Lacqua in london. 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