We are live from bloombergs European Headquarters in london. Literally, elon musk unveiling his latest space age creation. We will talk about that a little bit later. Speaking of big numbers, a slamdunk for Steve Ballmer, maybe. His 2 billion offer for the l. A. Clippers. That is a Basketball Team if you didnt know. We begin with bnp paribas. Shares sliding today. Frances biggest bank facing the largest criminal fine in u. S. History. Authorities are seeking more than 10 billion over sanctions violations. Manus cranny is here with more. For 1. 1 billion. This could be bigger than 10 billion further down the road. Pay a finep paribas of 10 billion . It sort of reaches into the realm of major adjustment and provisions. The bond market is already pricing in big moves. Credit is reacting. You can understand why. Pressure is going to mount. Nine of the most active bonds trade in europe are. Bob bonds. Bonds. E paribas how are they going to earn 10 billion . They have only done it twice in their history. 2010 when they earned 10 point 4 billion and 2007 when they earned 10. 7 billion. Veterans tensbank of billions of dollars on a regular basis. Jpmorgan has paid out the equivalent over the past number of years. Someone like jpmorgan is different. This is a bank that is going to struggle to earn that amount of money. This is a time when the eu is conducting stress tests. When they dont want to lend. They want to reduce their overall capital commitments. They are trying to build reserves. That is when you have got pressure. There is an article in the new york times. Never too big to fail, too big to jail. Nobody is too big to jail. Discuss this level of fine that is potentially being lobbied . Bloomberg, the reason why it is potentially 10 billion, misconduct more egregious and the bank did not fully cooperate. This is a master class. A master class in regulator saying, we have come to investigate you. Not only have you not complied, you have not cooperated. Now you are going to pay the price. This is regulators on wall street demonstrating very clearly, they have the facts with them. There is a breach of sanctions over a number of different countries, now youre going to pay. It makes it very clear, the value of the u. S. Banking license. You still have to operate within the dollar system. There is no choice. If you want to be a bank like bnp paribas, cough up. Manus, thanks very much indeed. Lets move onto our other big stories of the morning. Europes largest Engineering Company is removing more than 11,000 positions in an effort to cut costs. Our International Correspondent is here with more. Talk to me about the subtlety of this. This is positions, not jobs. Explain the difference to me. That means the 11,000 positions, some of those employees could get absorbed elsewhere in the siemens company. Reduction ofotal headcount which is what jobs would be. Earlier in september when they cuts, some5,000 job of those people got absorbed again. This is another indication that siemens is serious about costcutting. They need to look around for inefficiencies which sometimes means redundancies. Here is what he had to say in a Conference Call with investors. A certain amount of people do stuff for coordinating things, analyzing things. About 20 of those can be put to work elsewhere. They can be taken out of the system because the work goes away. About 7600 jobs will be streamlined for new divisional structures. Another 4000 who are working in superfluous positions for those regional clustering companies a sickly they are reorganizing the company. The initial plan was to have four sectors. Now they have nine divisions. One question they have had throughout this, what they are going to do with health care. Kaeser says he may sell it, may not. Here is the quote is on to me like that offer. A company that is also pretty big in that sector is general electric. General electric bidding for alstom. Is there a read across here . Part of siemens case to alstom is they will keep jobs in france. It is more difficult to make that case and convince the French Public they are going to keep jobs there when they are trimming positions elsewhere. We expect a bid from siemens to come sometime later. They are interested in the energy business. That is going to come down to alstoms board and the french state. More difficult when you are cutting jobs elsewhere positions, excuse me. Got to get that one right. Cons, always a pleasure. Thank you very much indeed. Hans nichols. Now, the right to be forgotten, that is googles next big challenge after bowing to an eu resolution. Giant hasech assembled a task force to respond to demands. Here with more is Caroline Hyde. What is going on . From today, if you are european, you can block the evidence. You can block links to a damaging out of date information. Links to that information on the european websites of google. Google. Co. Ok, google. Fr. This is after an eu ruling declaring that you have the right to be forgotten. This is a very difficult balancing act. Google now has to decide, where does it block imaging private information . So difficult is that balancing act that it brought in a killer task force. They have got jimmy wales, the cofounder of wikipedia. They have members of the u. N. , law experts, academics, all to debate the ethical and legal challenges posted by the web. That allows me as a european to decide that i dont like the information out there. Form,download an online give them what country i am from, give them the link i dont like, and give them the reason why i dont like it. Then google ring together people , not algorithms, they debate whether or not it should be taken down. If they cant decide, it goes on to the protectors out there, the National Data protection agencies. So worried are they that germany has set up a whole new raft of courts just to deal with the potential deluge of demand to have links taken down off google european websites. They cant be happy about this. Exactly. Splash. S a front page it is larry page, the chief executive being interviewed. They said back in may when this decision was made that google was disappointed. Today, he says this could damage future startups. Google is huge. It has wads of cash to bring in that task force. They have the money to be able to work out how they navigate this very complex regulatory system. Man if you are a 1, 2, 3 woman band setting up a website . How do you navigate this regulatory system . You have got to really debate the concerns about how this governmentssive cover up certain information. This has got to be key in the viewpoints of many i european out there. Also he is humble to a certain extent. He does say we need to be more european. We didnt embrace the negotiations closely and not. They seem to be wanting to go out there and talk to the regulators of europe and get the sort of context. Europeans feel differently about their privacy then google and the tech giants do. Caroline, thank you very much indeed. Talking of tech companies, the former microsoft ceo, Steve Ballmer, has won the bidding war for the u. S. Basketball team, the l. A. Clippers. Pay 2 billion to buy the team from the starlings. Robert franco joins us now. 2 billion is a lot of money. Is he a basketball fan . The great thing about Steve Ballmer, everyone was wondering, what is this guy going to do now . He tried to buy the hockey team in l. A. And now he succeeded at this. 2 billion is a lot of money. This was a team that was bought many years ago for 12. 5 billion. It is above the highest valued Basketball Team. One of the most valuable franchises in the world, which is kind of surprising. We have been trying to make that point in the newsroom. Who . What . Well everyone knows the lakers, the chicago bulls. The clippers have never been a championship team. What is he going to do . Teams it is kind of like london real estate. They dont always have a market for it. You always have a market for people who are willing to pay very high. Most sports teams are not that profitable but they tend to bid up very aggressively because billionaires want to own certain things. Holmes, sports teams and yachts. And space rockets. Lets talk about elon musk. They are willing to pay apparently a lot more for Basketball Teams than space. It is interesting. You have three billionaires plus nasa and investors from the middle east toying with the space market. Only put elon musk about 100 million into the Space Business so far. About 175 has put Million Dollars in his Space Exploration company. Private Space Exploration is a real thing. These are pictures of elon musk last night. Spacecraft,usable comes back down to earth on those little legs. Rather you than me. [laughter] i would be quite nervous on that one. He says apparently he is not going to go into space for a few more years. He wants to watch his children grow up. I dont know whether there is a read across into his views on oh. We believe that one alone. Rob, always a pleasure. What else are we watching . What is on our radar . World cup tickets apparently are being listed for as little as 16. That is a 90 discount. Construction delays could be affecting the resale market. Inflation surged to a 23 year high. Consumer prices rose 3. 2 . That is due in part to a sales tax rise that is hitting consumers who have seen limited wage gains. It is still a fairly elevated figure. The u. S. As ukrainian separatists are getting outside help. Prorussian rebels used shoulder fired missiles yesterday. Bnp takes a beating. Shares slide as the u. S. Seeks a record price from frances biggest bank. How much will it have to pay up . That story up next. Welcome back. You are watching the pulse. Shares of frances biggest bank under pressure today. Reports are that the u. S. Is seeking a 10 billion settlement from bnp over sanctions violations. Lets talk about this now. Figure out what happens next. We have a banking analyst. Good morning to you. This number is larger than they provisioned for. They have 1. 1 billion on the books for this. React tobnp paribas this . First of all we dont know for sure if this is what u. S. Authorities are looking for. We know this from the u. S. Press. This number is circulating. It might be higher. Clearly what we have seen is that u. S. Authorities wanted to wipe out the net profit for the year. Over time, the number we are talking about keeps going up. Now the number is 10 billion. What can bnp do . They can take action by suppressing the dividend for this year. They can also take action on the bonus pool for the business. They can sell some business and they can raise capital. These are the measures they can take for example. That is the menu. What is the most appetizing thing on that menu . Which would be the easiest way of doing it . Economic to finance this in credit . Is it more efficient to issue equity . What is the right way of doing this . How do you maintain the balance and keep this business at least on the rails . The business is not going to derail. I think the bank is wellmanaged and they will take action and spread their action across a number of action points. First of all is the dividend. Second of all, the bonus pool. And maybe sell some assets. The problem is, if you sell some assets it is going to take time that was my next question. This comes against the backdrop of european banks being stress tested. The ratios are being examined very carefully. The timing of this could not be worse from that point of view. It is two layers. The action the bank will take and what can happen in the stress test. If you look at the impact on the the impact of the fine without mitigating action is to drop to 9. 6 . It is still viable. The mitigating action would have a positive affect. It depends on the management decision. The more mitigating action they take on the business, the more the business will be affected. That is maybe more interesting to raise a little bit of capital than to affect or impact the daytoday running of the business. Read across to other institutions . Is there one . Should i be talking about socgen here . Should i be talking about other european banks . Will takeparticipants the 100 basis points impact on capital and apply it to other institutions. That is the first reaction. The np seems to be bnp seems to be the first in the file. They are larger. Other banks are smaller players or have different circumstances or less aggravating circumstances. You can imagine that people start to take their calculator and imagine what would happen if socgen had to pay a fine of 5 billion. On a price of just under 0. 8. When does that number get back to 1 . Market be action today implicitly you can do docs from this that the market is pricing in roughly 4 billion. It is probably over exaggerated. We are going to see some stabilization once the numbers are coming out to the market. What remains is whether bnp will be excluded temporarily from the system of payment. That is an additional uncertainty. That banking lights comes at a very high cost. We believe that there. Nice to see you. Lambert,re. Time for todays pulse number. 10 billion pounds. That is how much drugs and prostitution are said to add to british gdp. Nice to talk about these things. The u. K. Says it will include the figures in its official calculations for the first time. Not the only country changing how it measures the economy. Last week italy and us similar plans. We are back in two minutes. Good morning. Welcome back. You are watching the pulse. Shelby talk about markets . Manus cranny is standing by. What you need to know is you have got the longest winning streak on the stoxx 600 since summer of 2012. Stocks are up by 0. 8 . Borrowing costs are a record low. , all the hallmarks of what mario draghi does not want to hear. Cpi numbers coming in less than the market anticipated. That is one of the biggest threats to the map underneath us. House prices, up for the 15th straight month in the u. K. We have a confidence poll from gf k. For the first time, turning positive. The underlying tenor is rising. Ant you have got is inflation story and japan but the wrong kind of inflation. It is not what they want. You saw headline inflation rising. Money coming out of the dollar and into the yen on the back of those numbers. What the bank of japan do more . Reality begins to set in. Dollar rising, yen falling. There are still people out there calling 105, 110, 120. Hours, first couple of when you have not quite had your cornflakes, money was coming out of the yen. The dominant equity story of the day is undoubtedly bnp paribas. You have the story with socgen, saying that their business in russia was under pressure. By off by 5 . Guy, i leave that with you. Options on the plate for. Not for paribas. Thank you very much indeed. Still to come, the man with the plan. Modi maps out a new blueprint for india. Welcome back. You are watching the pulse. I am guy johnson and these are the Bloomberg Top headlines. U. S. As ukrainian separatists are getting outside help and the forward in the form of advanced weapons. Rebels yesterday killed 14 soldiers. Next week ukraine faces a russian gas bill that will reach 5 billion. There is also a potential supply cut off. Wider european a problem. Bei think we should all worried about gas supplies in general. Not only ukrainian. It is a question of whose turn it is this year but this is something that needs to be addressed. This situation year after year. This is the ukrainians turn. It is not different then other times. The issue is a more general one. Security of supply in europe is a problem and should be addressed. Italy, the ceo of unicredit expects the ecb to begin an Asset Purchase Program soon. Spoke to us about the benefits of expected rate cuts next week. Rates may help on the euro . Not for us i think but for all economies in europe. And for banks, i think a program for mediumsized and small banks. Japans inflation accelerated in april to a 23 year high. Three. 2 . Ices rose industrial output fell after a sales tax increase. Tax out of that inflation number, still the numbers fairly elevated. Election ismental over and Prime Minister modi faces the extraordinary task of turning around indias economy. In his second cabinet meeting, the leader set out priorities for his first 100 days in office. None of them are easy. Bloomberg tv india has the details from him by. What is top of the agenda . Growth i guess. That is the big worry across the region. The in india we are seeing worst growth in two decades and the highest inflation. Sentiment is very high for the equity markets. The economic reality is far from euphoric. Making india a very business unfriendly. That is high on the Prime Ministers to do list. The new the appointed Prime Minister has asked for all ministers to fix a 100 day agenda listing priorities for various ministries. Growth is up 5 for over a quarters. Reports are indicating that the Prime Minister wants to ensure consistent policy and that is a big one given the fact that the bigticket investments have really shied away from india. Of the tax flipflop as well as a big legal drama. We understand there is a meeting next week of global brokerages with the finance Ministry Officials to try to gauge expectations. On the other side we have a huge industrial activity here as well. Prime minister modi is likely to revival onvile the infrastructure space. All in all, it is a large burden of expectation and a lot of to do on this governments list. We are going to get clarity on how serious the problem is later with a gdp figure out. What are we expecting on that number . Expectationt is the from the january to march quarter. That is good news for the economy. We will be sub 5 making it the worst growth in 25 years. Activities are almost at nil. Agriculture output also not looking very encouraging which hide, on the other services are doing not well. No good news coming in from the economy side at all. A lot of work to be done. Thank you very much indeed. Going to get much more of what is next for india. We are going to be talking to the founder and chairman of cobra beer, Karan Bilimoria is going to be joining us very shortly. Lets shift gears. Lets talk about how to turn your passion into a business and do it well. It is from the school of creative startups. They will be launching new businesses this weekend. Joining us is the director. Good morning to you. Good morning.