tv Countdown Bloomberg May 16, 2014 1:00am-3:01am EDT
>> and again stocks headed for the biggest gain in five years as early counting shows the opposition bjp leads the country's elections. >> credit suisse is close to wrapping up a $2.5 billion deal with the u.s. justice department to put an end to their tax probe. >> voters head to the polls this weekend. the choice, make switzerland the world's highest minimum wage destination. >> the final installment of my entrepreneurs making it series. we'd look back through some inspiring stories and ask what it takes to support today's entrepreneurs.
>> took him to "countdown." i am manus cranny. >> i am anna edwards. bloomberg reporters are standing by across the world ready to deliver the stories that will drive your day. in mumbai, the votes are counted in the world's biggest election. jonathan ferro is following credit suisse's potential deal with u.s. tax authorities. >> hans nichols is in berlin with details on key votes for the swiss. -- zeb eckerte on is in hong kong as japan debates beefing up its military. >> later, they are crafted with the most precise workmanship. these are not the most expensive pair of glasses you will ever buy. how one startup is trying to up and the business of high-end
eyewear. it is vote counting day in india. the election was the world's largest taking place over more than a month. nine rounds of voting. 551 million votes were cast. joining us for more on the latest is sent hundred. what parties are leading? looks like heodi is ahead in the polls in the moment. >> it definitely seems like that. like you were pointing out is does the biggest we have seen in india. bjp has crossed the 290 mark. we have to see what the final looks like. anyone going into the next
government needs to hundred 72 for a majority. the alliance which is led by the ,ongress party that is willing touching the 80 seat mark as we speak. this is the biggest margin by which the bjp has been leading so far. >> just looking at the market currencies,ocks and some quite big moves. >> absolutely. the reason we have seen the markets rallying the way we have is probably the fact that modi, hasopposition party, he been the chief minister for about 30 years now. you are seeing a huge revival. really sees him
as someone who speaks the language of business. extremist.as an one of the deadliest religious riots took place on his watch. congress has been hit by several scandals, not being able to push through reforms effectively soon enough. rallied.ts have around therk is up 25,000 mark. we have seen the nifty open about 7600. the rupee also continues its rally.
corporate india seems to be watching out for what a new government and a stable government could bring. >> thanks for that roundup. >> credit suisse is close to reaching its $2.5 billion deal in the united states over its tax probe. the deal could see switzerland's second-largest bank the guilty as to whether it helped americans evade taxes. jonathan ferro has the details. billion tols $1.7 the department of justice, $600 million to the new york department of financial services according to people familiar with the matter. credit suisse could be close to closing this chapter. for the price of $2.5 billion. i sat down with rady dugan last month. he seemed pretty confident about the progress they were making. set aside 425 million swiss
francs in provisions. that was in addition to 300 million they set aside in 2011. i asked him whether he could rule out further provisions. he could not. if it is $2.5 billion, that would be pretty big. >> a lot bigger than ubs. what were the numbers, $750 million? $780 million. this would be three times as much. what is the risk here? there is a guilty plea involved. >> a lot at stake. the parallels are going to be drawn. ubs felt with as quickly. settled in 2009, the investigators what they wanted. a lot of people tell you that credit suisse may be taking a lot more time over this and a lot of criticism has been attributed to brady dougan himself, the ceo. he testified in front of the u.s. senate in february. he said this is a small group of
swiss bankers that skirted the bank's control. he emphasized this was a very small slice of global profitability at the bank. less than 1%. , $2.5hunk of change billion. for a man who has been with the bank since 1990, the ceo since 2007, he has made significant progress. he has worked very hard to deal with this issue but he didn't know this was happening. when this was happening? >> jon ferro with the latest on credit suisse. >> the swiss are going to the polls on sunday to vote on two key issues. one concerning fighter jets, the other concerning pay. hans nichols is in berlin with the details. let's kick it off with these fighter jets. the swiss would buy from swedish companies. how are the polls looking? should saab be worried about losing a big contract?
>> saab is worried. i was in sweden earlier this week talking to them. when you look at the latest polls, 51% of swiss voters could cancel this $3.5 billion contract. it is a remarkable moment where you have the swiss voters saying this fighter jet is too expensive even though it is one of the cheapest on the market. this is very much about cost. when you look at the saab griffin, it has a lower cost per hour flying time than any of its competitors. that is one of the reasons this would be such a remarkable setback. the griffin is marketed as a low-cost versatile alternative to the roth a.l. or the f 35. that is just one of two important votes. the other one, the highest national minimum wage. that one may end up going down.
it is so easy to get on the ballot, to get the referenda on the ballot in switzerland. you just need 100,000 votes. that is one of the reasons we have seen a slew of votes on a host of subjects. ok, hans, thanks for that roundup. upjapan is debating beefing its military and playing a more prominent role a broad. it is an issue that has divided the country. let's go to zeb eckert in hong kong for more. >> good morning to both of you. this is sounding the alarm bells in places like beijing as well as seoul. tokyo says we are not looking for work. we are seeking a reinterpretation of our constitution. this according to prime minister shinzo abe who went on television appealing to japanese
citizens to support these measures. he wants to aaa constitute -- to strip away constitutional restrictions on japan's armed forces. to support the united states if it is attacked, to clear mines in shipping lanes and to deal with illegal activities forcefully near remote islands. that of course is raising alarm bells in some capitals around the region, specifically beijing. japan embroiled in territorial disputes. it has to do with the east china islands upe see the for dispute. these are very complex regional issues. lingering tensions, remnants of the world war. japan it appears wants to have a firmer military posture. the foreign ministry in beijing reacting, saying the
international community must maintain high alert on japan's intentions. we have seen cautious reaction and theicials in seoul china daily newspaper out with an editorial saying abe moves forward. the public constitutional rights have been stripped. a counter offensive by regional powers. certainly this ratcheting up tensions between japan and its partners in the region. thank you very much, zeb eckert joining us from hong kong. >> just ahead, indian stocks jumped the most since 2009. the rupee is having a pretty strong week, over 2%. modi in the lead. details next. ♪
orange and bouygues said separately that they are exploring potential consolidation in the french phone market after reports that they have held talks about possible combination. open to aaid it is tie up with another telecoms company. the san francisco-based startup uber is in talks to raise new financing in a round that may value it at more than $10 million -- $10 billion. that would almost triple the company's value from $3.5 billion last year. ."lcome back to "countdown i am anna edwards. >> i am manus cranny. today, we get results of the world's biggest election as indians choose the next prime minister. early counts show the opposition party candidate is in the lead. here to discuss all of the issues is the founder of dos,
tell. -- das kapital. he wins theant that majority or is it a solid coalition? >> probably a solid coalition is the most likely outcome. i think that is going to be good news. the market is pricing that in. the challenge is that once he is in the seat, it is going to be a very complicated country to run. >> what was the greatest competition -- challenge for the congress party? >> congress faced a series of vetoes from coalition partners and the states. the bigger trajectory in india is more federalization, more power being devolved to the states. that makes the complexities of running the place even more
evidenciary. having a strong leader will help but it is not the solution to everything. ofa great deal has been made his agenda, the data has got to be -- that it has got to be more restructuring. what is going to be the top priority? waveere has to be a whole of structural reforms of their rias kinds. sources,s at trusted they have come up with a shopping list of 10 things that he could do, some of which are quite big and some of which are important symbols like the identification program, the id card, they should get behind that. it is not clear that they really are. they should do a lot of things to reduce the prospects for state capture, crony capitalism.
it is not clear that that is what people are expecting. the companies he is perceived to be close to have outperformed the rallying stock market. there is going to be a lot of examination. >> interesting that you talk about those types of issues around identity cards. jumps would more quickly to things like infrastructure as areas that need to be improved. infrastructure challenge is a very important one. the reason i emphasize these sorts of things is because the ,rganizing problem of red tape the central problem is that there are too many avenues for corruption. everything that should be done should be to clean up the state, get it out of the way of good business rather than have it being captured by big business. >> that cleaning up of the state, will that encourage more foreign direct investment? corruption in governance is pretty important. it probably is the single
most important thing, to improve the governance of india at every level. level, theic sector federal level, the state level, the corporate level and the financial level. all of these things that need to be done need to point in that direction. about thewere talking central bank. the central bank has made a kind of quantum leap with its new governor, obviously a formidable figure. i think the signals that are sent on that front could make a very big difference. bank governor this morning saying he is keen to work alongside modi but he has put his own stamp. he has raised rates. he is really going after inflation. >> does that sacrifice growth too much? >> a lot of the growth was maybe too fast. based on a lot of short-term debt. external debt as well.
thing that has deteriorated in india is that the government has made the economy becoming more and more reliant on short-term external debt, more exposed to external shocks. when the current prime minister the reforms that generated growth in the 1990's, that is the problem he was trying to solve. here we are coming back to it. >> it has come back to bite him. >> thank you very much. thoughts on the indian elections and keep bringing you up-to-date as well with the latest polls as we get them. stay with us here on "countdown ." ♪
." welcome back to "countdown i am manus cranny. >> i am anna edwards. we are back with the founder of das capital. getting your thoughts on the indian election. comparisons with china have been made in academic circles many times. domestically, there is a constant comparison being made with china. is this helpful? >> i think it is a very dangerous thing. i call it china and the. people talk about chindians.
it is absurd. there is no such thing. aredes the fact that they the largest populations in the world, they are completely different. one of the mistakes that has been made in the economic management of india is this idea of trying to catch up and grow faster and have a chinese growth rate. it has led to all kinds of imbalances that show up in current account, credit growth, inflation, all these kinds of bottlenecks. i think they were doing the right thing by tightening to restore the credibility of the state and the reserve bank, stabilize the rupee, stabilize the price level. otherwise, we know very well from the experience of many other countries and india itself, if you have too fast growth you have all kinds of problems later. >> one of the propositions that has come through this week is that they have squandered their opportunity in terms of bringing
the rural population in and collecting taxes. do you think that is too heavy an accusation? >> i think it is not strong enough. >> i am trying to be mild-mannered but you are the guest. >> we have to look at this objectively. i wouldn't say they have completely squandered the opportunity. the question is whether the labor market and the process of building infrastructure can be improved enough and quickly the kind ofleash growth. one of the great things about india is that when you do succeed in making a change, there is a very quick response. is market is very big and it rearing to go. over the last several decades, incomes and living standards have improved dramatically. it is nothing compared to what could happen.
it wouldn't be so much china and a, it would be catch up. >> you think one of the things we need to guard against is crony capitalism? favoring certain businesses over others. >> there is way too much capture of the power of the state by people who are too close to the state at the federal level. that has been one of the problems we were talking about with the outgoing government. it is ae an issue -- difficult thing in a complex society like that. you put people close to you that you trust. you need to strike the right balance. now the constituents are going to be all over the map. >> thank you very much for coming and. we will continue to bring you the latest results in these elections. leads 272 seats, signaling a majority. that coming from ndtv. coming up, more on the indian election results.
>> welcome back, i'm anna edwards. >> we're going to take a look at the best-performing emerging market currency today, the indian rupee. the dollar getting weaker, the rupee getting stronger. 550 one million votes, a seemingly business friendly government coming into india. it is not just in the fx market, equity, asfx and
well. this time last year, when ben bernanke was talking about tapering, this one got taken to the cleaners. >> these are the bloomberg top headlines. ukraine's president is saying the government is working to expand constitutional powers. u.s. and european officials say they will punish russian industries if this months residential election is undermined. confidence among u.s. businesses has reached a six-year high. the fed chair janet yellen credits small businesses with fewer than 50 employees for the majority of job growth since 2010. she's private payrolls have continued growing. at payrollsright have continued growing. businesses deserve a
considerable share of the credit for the investment and hiring that has brought that progress. >> the bjp and its allies are leaving in india's general election according to an ndtv tally. modi could claim victory. the final vote count is expected later today. >> with that news, india's reached thedex has highest level in over five years. bjp arty havethe have 257 seats.
investors wait to find out has enough seats to take power. great to have you with us this morning. victory ist this possibly all priced into the market. sorry, i didn't catch you very well. >> no problem. can you hear me? it is manus cranny in london. is all the victory priced in to the move of the rupee and the equities market. >> exactly. i have and index which is up 16% today.
we have a target of 25,000. a victory of the bjp majority, which seems to be the case. we are advising investors who at indices in other countries, including china. staying with india for the moment, do you feel the currency move, the space and time that they have been given in regards to tapering is a plus for them? can the currency move higher on this? well, the currency can continue to move indeed. especially since we don't have the final results and we are not yet -- there can always be a surprise. close.k we are very
in our view, it will be other drivers which will take the lead. towhat would cause you change your view? if we saw a substantial majority going to the bjp or the nda as a , would that level of control in terms of decision-making in india, with that change your mind at all? is that something you think india needs stronger leadership? is that something? do you think india needs stronger leadership? it seems that we are going
therds a full majority for bjp led coalition. there might still be a little theof upside, but most of move is now done. comparisons between india and china are perhaps not always helpful. what do you prefer for your investments? china much better, cheaper valuation. the sentiment is probably also not as positive or as consensual as it is in india, to say the least. we really view china as a long-term investment, in the equity market especially.
i would expect the chinese equity market to start performing in the second half of the year. >> thank you very much for . ining us, ahmed therirters may shoot down these's look at how fighters are actually made. they have the confidence that their planes won't come in second place. >> i will leave that to the air force. >> with this $3.5 billion contract taking political flak switzerland, some are looking over the horizon. keep it competitive in
a dangerous world. >> someone else will find a way to counter that, and then you have to be better than that. that is how it is going to be developed. good or bad, costly, yes, that -- the way the world looks like. if you can't counter those threats, you will be behind after a while. fasteners, 23,000 parts. once the fuselage is complete, the fighter takes 68 days to assemble. this is labor intensive work. some guys are putting in 300 meters of tubing, 30 kilometers of wiring. the next up, he gets a nose and some wings. sob currently produces eight fighters a year. it wants to increase that to 30. the goalnext 20 years, is 10% share of the global fighter market.
conditionsends on out of the fighter pilot's control. >> two versus 2, 1 versus 1, 4 versus four. you can set up any scenario you want. we can provide an aircraft with excellent performance and show that and demonstrate that. then it is up to them to think how they can use this. >> after my simulator time, i can test its capabilities in the full envelope. hans nichols, bloomberg, sweden. top done and tom cruise. he is a whole new career ahead of him. maybe he is not old enough to know about tom cruise. that looks like an amazing place to visit. >> it was incredible to visit.
i will have to correct you on tom cruise. i was going to write the script entirely in top gun quotes but i thought we would totally bore anna. you are seeing not just a sticker price. this is the initial hitting war. how much does the actual plane cost? 22 planes to switzerland for $3.5 billion. it is the cost per flight hour that is much cheaper. they're saying they're winning tenders.eir hour for theer about. what is remarkable this move in switzerland. opinion polls suggest a 51% of swiss voters are going to vote against it. this is still one of the cheaper
options out there. it is unclear how global concerns about russia and elsewhere could help or hurt sob aab eventually. thef this was public feel need for speed, other alternatives are available. >> i don't want to cry if i start thinking about when goose dies. .hat is a serious moment i guess the question is, could i be manus'wing man? wing man? they have a planes that they're doing per year. they want to go up to 30. this is a company with ambitions.
they see the market. there's competition and there is also a voter backlash of people think their government in a time of austerity are spending too much for fighters that are expected to make and just as expensive if not more expensive to maintain. >> the highest minimum wage on the planet, 4000 swiss francs per month. that is what the voters on this month. what is the likelihood of it passing? >> opinion polls are saying that is less likely to pass. it seems like the forces against -- it is minimum wage remarkable. when you translated to the swiss franc, this was frank is so strong. i know you feel rich when you go to switzerland, but most people feel poor. compared to the highest minimum wage in the states, that is
advertising this week. aneral motors recalls additional two point 7 million cars for a potentially faulty brake light and other issues yesterday. this brings its total of cars and trucks called back for repairs to 11.2 million. this is the largest recall ever for the automaker. back to "countdown." i'm manus cranny. >> and i'm anna edwards. if you wear glasses and you like fashion, you probably paid a lot of money for frames in the past. for the latest in the entrepreneurs making it, i went the designer. >> every brand out there speaks about the quality and the craftsmanship. it is a trendy word these days. we have to show it. so we went off to japan and we
filmed the actual process of our manufacturing. >> this is the end product. archibald objects. britain retro-style reading glasses made in japan. the company says it is delivering quality at a lower price tag by cutting out the middleman. i spoke to him outside his home. >> it is something that is considered in a similar category of high quality eyewear. it would take someone back about 600 pounds on the high street. we do it for 175 pounds all-inclusive. don't have a background in eyewear, do you? where did you draw your inspiration? >> i chose a. that i thought was cool. if i like this, there will be other people that like it.
>> this is it? >> yes. this is a real living room start up. >> how do you find balancing living and working in the same space? >> i think in the position where startup, it-stage is a divide. generally, everyone is all over the place. things are being thrown around the office. it is the way startups should be run. >> despite his best efforts, i'm not sure i will ever pull off the michael caine look. these are 15 years old. >> i am not employed to be an impersonator.
>> they look pretty cool, actually. is the last in our series of entrepreneurs making it. without we would reflect on some of the stories we're been telling. unbelievably inspiring stories from people putting their own money on the line, putting investors money on the line. thatere are a couple really spring to mind. story, these guys can find an exclusive car in london. i really enjoyed that. the west midlands, exactly. there are some really tangible entrepreneurial stories we're been telling. the london brewing business, the london distillery company. are all really tangible things. then there are the more technology side of things. augusty,
building up to a summit that is taking place today about entrepreneurialism. >> has the government done enough? in the policies that we have place actually going to do enough? >> we're going to speak at 7:30 today. >> you have a very long day. >> they're turning it around a little bit he says. coming up on the program, a famous duo may be set to retire, not manus and i. that is coming up next. ♪
this kid is going to be one to watch in the coming years. >> 15 years old. >> i have missed a lot of moments. >> that is sad. >> you know what? i just focus on the front of the independent. this is pictures of the mourners for the miners who died in turkey. a nation in torment is the headline. it just looks so sad for that gentleman just waiting beside the tree. listing off the -- >> he wasn't popular. >> he wasn't. >> ongoing discussion about what caused this. let's move on.
a story saying the end is nigh for wallace and gromit. retiresticine duo may because the voice of the inventor is so frail. this is the man who voices , who is an inventor. if you have seen any of the stop motion plasticine films, it is a major u.k. export. was the way he said cheese and the way his mouth moved. interesting, he goes on to talk about comparing pre-recession and after recession, how you fund filming. is a really good article. sad, if you like wallace and gromit. there has been a 38-year-old
a warm welcome to "countdown." i'm an edwards. it is 7:00 here in london. we are getting new car registration figures in europe. we had some disappointing figures on various parts of the euro zone economy. in the light of that, many people asking about whether we would see something weaker on the car front of this month. it looks like that has come to pass. april car sales looking particularly weak. we have numbers coming through. new car registration in germany following. the u.k. have been something of a bright spot for europe in recent months. registrations rising by 1.9%. intoouldn't read too much a one-month report.
we will have more on that story in a little while. it is vote counting day in india. the election was the world's largest, taking place over more than one month and nine rounds of voting. 500 51 million votes were cast. 551 million votes were cast. counting --te in what is the latest counting telling us about who is going to win? 's bjp is out modi front. for the nda.lide it is a watershed moment in history.
the bjp was gaining momentum all the while. at this point in time, the 317 leadingabout for the nda. the magic number is 272. any formation that reaches the magic number will form the government. at this point in time, with the numbers we have now, it looks like the bjp on its own, may even reach the 272 number. is a clear victory for the coordinated strategy that the bjp put together over the past couple of months. it has been quite abysmal, but is has clearly been a shot in the arm. 24,700, give us a background for the strong market reaction. what is behind it?
fact of the matter is, the indian economy has been in a funk for the past year and a half. someone who comes with a clear set of policy actions, and ideology, and someone who can get business right. modi was able to communicate that message very effectively. he said he would deliver the goods for the country and financial markets. if the bjp comes to power, you will see business getting done. he is a proven track record. you're seeing the kind of over the next couple of days. you'll see a sustained interest in what the government is doing.
it will consequently mean improvement in corporate earnings and therefore in stock prices. in someoversial quarters, seemingly popular with some investors. thank you for joining us today from bloomberg tv india with the latest on those elections. the get back to that story on the car market. rose at the market lowest percentage in five months. what can we read into this month's numbers? >> let's look at those individual brands. what you can read into the numbers is, you have a recovery taking place in the mid-level, not on the luxury level. 16%,e show you, renault up which was led by its no-frills dacia brand. you can ask to see real gains
going on there. peugeot gained six percent. once again, look at what was going on in volkswagen. rose just total sales over four percent. the vw brand down 0.5%, but if you look at skoda, up 22%. there is a pattern going on there. bmw, the whole brand is up 0.5%. that was because bmw itself rose three percent. down 11%.ent that reflects the fact that they are actually revamping that whole lineup. people are hesitating before they are buying minis. .ercedes up 1.9%, audi up 0.7% the interesting thing to do here is put it into context.
the european car market up until last year fell every year. there are six straight years of contraction. last year, 20, was the worst year since -- in two decades. the question is, are we seeing a recovery in the european car market, or are we seeing a rebound? it is a little like that western we are seeing about the economy. this is a good sign about what the consumption indicators might be for the first months of the second quarter, and a. na. >> credit suisse is close to reaching a $2.5 billion deal in the united states. it could see switzerland's second-largest bank lead killed sea to helping americans evade taxes. jonathan ferro has the details.
what are the details here? >> the details are going to make you dizzy, like most of these investigations. we're pretty close to closing the chapter that everyone at the bank wants shut. it is going to take a big amount of money to get it closed. $2.5 billion. one $.7 billion to the justice department, 600 million to the new york department of finances. you can see they settled with the fcc. i asked him pretty straight. can you rule out further provisions? he said to me know. obviously, he couldn't. looking ate were
$1.1 billion-$1.5 billion. cover creditt just suisse, this covered banks as well. asthis could be three times much. the parallels will be drawn with credit suisse and ubs, because they're always the ones we look at. it is not just credit suisse, it is on the investigators. have taken a lot of criticism by a lot of lawmakers for dragging their feet and not getting this dealt with. of pressure on credit suisse and the management on top and how they dealt with it. he emphasized, this is a tiny slice of bank profitability we are talking about, less than one percent of global profitability of the bank. it might be small, but a huge fine.
if you do get this massive fine and indeed you get a guilty plea as well, that is significant. it will raise questions about brady's future at the bank. when asked, he did not know what was happening at the bank. that raises a big question about oversight. >> jonathan ferro on just one of the issues overhanging the banking sector right now. are going to the polls on sunday to vote on two issues, one concerning jets and the other minimum wage. jets, which the swiss would buy from the swedish company saab. should they be worried about losing this contract? >> they should be worried, they are worried as i learned when i was up there earlier this week
where they make the gripen fighter. they're going to vote for the referendum to cancel this $3.5 billion on track for 22 planes. they simply think it is too expensive. oppositionthings he is zeroing in on is how much it costs to run these fighters. it is not just initial sticker price. they say over the lifetime of the fighters, some 11 point $5 billion, even though the cost or is onehour of the gripen of the lowest out there. just $4600 per hour to fly. $31,000 per000-30 $10 hour. switzerland has the highest wage in the world,
about $25 per hour. at switzerland's long-term profile, their ability to stay competitive, it is a real challenge for the business community to knock back some of these initiatives. >> hans nichols with the latest on the swiss vote. india's stocks and the five-year 's coalition leads the vote. we will have more when we return. ♪
the christ war dance earnings -- earnings.ce war dents that would almost triple the company's value from $3.5 billion last year when it last raised funds. welcome back to "countdown." it is 16 minutes past seven. the indian elections results are just starting to filter through. the early indicators are that the bjp has done very well. let's get some reaction from across bridge capitals analyst maneesh singh. interesting to you today
is how well the bjp seems to be doing in the early counting on their own. if they can cross that 272 seed at mark, then they can form a government without a coalition. mr. modi was for minimum government and maximum governance. election forficant india and for the emerging market. the growth and reforms have to come from the emerging market. the bjp does get a majority, what does that enable them to do that they would not otherwise be able to do? open a warehouse in mumbai takes you 196 days. will reduce the amount of red
tape that needs to be cut. if you look at the number of tourists in india, it is 6.8 million. 132 million. the growth that is necessary has been blocked by inefficiency. were at the same point in 1970. korea is now 30% gdp and india is at 15%. these other issues that the new government is going to deal with. >> infrastructure can be controversial and you need a majority. >> basically, a new government is going to prioritize spending over subsidies. i think this is for positive. di has been a state
leader for three terms. it is a complete change of politics in india. he is an outsider to the delhi establishment. >> are talking about wiping away decades of the nehru gandhi family at the heart of indian politics? >> yes, but it is been happening for some time. the bjp has always been seen as a center-right party. that is how the media perceives it. it has been difficult to find allies. di has been talking about growth and governance and what india should be doing.
that is a staggering number we are talking about. >> he has been a controversial person in some areas, particularly in areas of promoting violence in his own state and standing up for certain ethnic groups within india. is that something that is going to be something of a flashpoint from here? a mediank it is more discourse because he has been exonerated by the courts. i think the legal courts count much higher than public opinion. i will stick to that. he may have to face more questions, but it will never go away. i believe that the courts are higher than the opinion of the people. >> we will take a short break. when we come back, we will talk about what this means to the investment climate in india. ♪
the excitement surrounding the possibility of it bjp in -- of a bjp win. is true that a lot of these rallies are based on perception. the reality has to meet the perception. the key question will be about reform. me of when ronald reagan came to power in 1980. moodi will be faced with similar questions. companies that have big operations in india like citigroup,d siemens, there will be some clear winners. >> they are already established. the investment cycle has to restart. this --be caption of
may be captain of the ship, but it has just come out of a big storm. the only good thing that the last government has done is that they had an inflation fighter. you can have a monsoon effect that can happen. again, back to your question about business, there is no that he has a reform agenda and a growth agenda. houses -- very positive indicators. >> you put him up there with great positive political characters. >> i don't think many people .eally understand mr. modi when you listen to him, he is
very inspiring. he is an outsider. he has all the room to make changes and govern his own way. he still has some challenges within his own party. until a month back he was seen as an outsider in his party. he has a team of people who he has worked within the state to he will bring to the center. >> will the indian middle class experience this growth? >> you have to bring people into the middle class. non-cashtalk about interactions, that is about six percent per capita. >> thank you very much for manish. we will
>> welcome back, i'm an edwards. let's head to jonathan ferro with the fx check. fallingis the dollar and the rupee getting stronger. the dollar is coming back a little bit. set to win the election. businessd to be more friendly. that is giving indian assets at left. you see the dollar coming back already. what is different, i will say --
what a difference a year makes. how long will this last? that is the big question. tophese are the bloomberg headlines. ukrainian forces have dislodged separatist from two rebel bases in the east. ukraine's president says a government is working to expand constitutional powers to allow the local governments. u.s. and european officials say they will punish russian industries if the ukrainian election is undermined. fed chair janet yellen credits to small businesses for the majority of new jobs. she says private payrolls have continued growing, even as the public sector trims down. come a long way since the dark days of the financial crisis. small businesses deserve a considerable share of the credit for the investment and hiring
.hat have brought that progress >> the opposition bjp and its allies are leading a majority of parliament seats contested in india's general election, according to an end dtv tally taken a short time ago. claim victory and become prime minister. the final count is expected to come today. protesters took to the streets one hundred 83 people died in turkey's worst mine accident. 183 people died in turkey's worst mine accident. >> as you said, this is turkey's worst ever mining accident. this is shifting from devastation to anger.
thousands of protesters took to the streets across turkey. elyse used tear gas and water cannons to disperse demonstrators. the government's handling of this disaster is provoking the anger. yesterday, pictures emerged of the prime minister's aid kicking a protester. -- prime minister himself pictures emerged of him slapping a protester. there have been shown across turkish media. this catchy was downplayed, at tragedies likey lik this happen all the time in mining. ahead of bloomberg's gro summit, david richards of
the big data firm joins us in the studio. for comingery much in. a lot of focus on entrepreneurialism and growth here at bloomberg today. you have been pretty critical about what the government is doing in the u.k. in terms of laying out the playing field for an entrepreneurial culture. give us your up-to-date thoughts. >> first of all, we have a massive opportunity in the market in general. you are going through a huge disruption. a lot of traditional companies are being replaced in the marketplace. unfortunately, to take advantage of that we need more than just office buildings and silicon roundabouts. we need an education system that provides ready-made graduates to fill the void and the opportunities in the marketplace.
>> i know you've told me the past, you can't recruit all the skills that you need here. >> we do have about half of the company in sheffield and in belfast as well. we are pretty good hiring job developers and really good people. real up-to-date current skills for big data, really, although skills are derived from silicon valley right now. carnegie,duates from from stanford there were able to step right into our organization and be productive immediately. i don't see that in the u.k. today. this long-established cene -- how do we stand up on those comparisons? >> silicon valley is an easy place to go. >> you don't like the silicon
roundabout, do you? israel is a far better example. if you look at the quarter companies on nasdaq, it is close to 100. for a relatively tiny country, look at the billion-dollar assets that that country generates in tact. we could do that here in the u.k., but it requires government policy in order to do that. it requires an overhaul of the education system, a fundamental overhaul now in order to take advantage of that. >> doesn't require private businesses and others to invest in those skills as well? >> i think so. ofare in the middle training people because we have to. and of the private business the education system as well, we
have to have graduates with the skills available in the marketplace today. otherwise, you can scale a business so far, but to get a hyper scale a business like , theirk and google people based businesses. we have to have people that can fill that void. >> the u.k. government has -- centers.ounced let's get back to big data and where your sector is at the moment. fallenock is perhaps them to a reassessment of valuations. it has increased six fold out of the gate following the ipo which was a fairly impressive performance. it is now lost half of its value since those peaks. been something fundamentally worrying about tech valuations? >> at him think so. markets go up and down. that does not concern us too much. we are certainly maintained an
optimistic outlook. was pretty strong last year. we're focused on similar growth this year. within the opportunities in big data are absolutely enormous. when client/server appeared, we got clients like microsoft and others. there will be new companies that are minted in that marketplace. we hope to be one of those companies. >> there has been criticism of u.k. entrepreneurs who have sold out too quickly. would your company be up for grabs? fromul harrison joined us sage, a ftse 100 company. we are very focused on growing this business. we think we have enormous market opportunity. richards joining us.
time for today's company news. credit suisse group is close to reaching an agreement to lead point and pay about two $5 billion to the u.s. justice department and regulators according to people familiar with the matter. the agreement will resolve to whether the company helped americans avoid paying taxes. up from $3.8 billion seven months ago. the financing will help fund an expansion for the website. general motors recalled an number of cars. its total of cars and trucks called back for repairs in the million. year to 11.2
this is the largest recall ever for the automaker. welcome back to "countdown." is 7:40 two in london. manus cranny will be anchoring the next program. markets have been overwhelmed yesterday. what do we have in store for today? >> you had one of the biggest selloffs in over a month. they very obviously do matter. where the shock came into the marketplace. but we are seeing in futures at seeingent -- what we are in futures at the moment, those numbers don't look up to let's pop that off.
who see what happens there. the french state has a holding in orange. we will see what comes there. also looking at -- if you have not made an acquisition in france, it is about time you did. and find out try where we are with the indian election. have another guest from cross bridge capital to talk excuse me, your last guest was from cross bridge. interesting, very thatcher-esque and reaganesque. he definitely believes in a big change coming to the indian marketplace. keep an eye on that
and the tally and when it comes in. reaching record highs. a lot of excitement and expectation surrounding the results. $325 billion has been added to the value of indian equities since modi was appointed the head of his party. >> manus, thank you very jonathan ferro's joins us for -- jonathan ferro joins us. numbersxpecting those and confirmation of a victory for the bjp. that will be one of the features
of the trading day going forward. what else is on the blocks, jon? just to build a couple of things that manus said, it is really been driven out of the bond market. you look at the 30 year bond, every single year in january you get this research notes. rally insee is a 13% the 30 year u.s. treasury. is ais behind that rally short covering. a lot of people might have to cover those positions going forward. what you have seen is a debate on whether you will get easing from the ecb. yesterday was remarkably choppy, incredibly choppy. when you look at this treasury rally, i would say look at the last 12-18 months.
around almost 100 basis points higher than we were a year ago. ?> jamin a lack of volatility certainly, people up and talking about it in more recent months. -- do you mean a lack of volatility? coming up in the program, we're looking at the last trading day of the week. not likely to build risk heavy positions before the weekend. we will talk about more when we come back. ♪
>> welcome to "countdown." it is 7:50. the con film festival is the biggest marketplace for movies. thousands of hopeful producers and directors compete for funding to get their projects off the ground and onto the silver screen. bloomberg goes behind the scenes of the con film market. the cannes film market. kickback is the story of a newspaper editor murdered in moscow.
will be about 10 million. even lower budget movies are made for one million. it is really tough because no one is willing to write the check. >> money, that is what all these people are fighting over. s film market.nne working out who has the goods and who is talking it up is not easy. of peopleget a lot who are pretending that they can finance your movie and they just like to be with the glamorous. the depth of films is remarkable. the film market can generate up to $1 billion. >> over 5000 films from all over
the world are here, but only a few hundred will make it to theaters. investors are less willing to take risks due to competition from the internet and the slow death of dvds. >> video buyers are replaced by internet. they're now looking for distributors. most films here never become more than a coaster. --us bennett, bloomberg, never become more than a poster. angus bennett, bloomberg, cannes. >> michael, thanks for joining us. how much risk appetite do you have this morning? is pretty fragile. it is sort of the morning after feeling. massive question as to what extent the markets can call back
the fallout from what was a mini meltdown yesterday afternoon. looking at the prognosis this morning, asia is not giving as much of a lead. we have a week number four car registrations in europe. is futures are saying it only slightly in the green. >> we saw the numbers that underwhelmed on growth from the eurozone yesterday. all eyes on the next inflation what that does for the dashboard, as seen by mario draghi and the ecb. >> yes indeed. the one thing which is giving some underpinning to risk markets is a prospect of more -- of a more active ecb. there has been a rather unhealthy dynamic in markets over recent weeks and months. if you look at markets more broadly, it seems to be telegraphing a weird combination off.sk on an growth
we have seen corporate .igh-yield to do extremely well this could be resolved in one of two ways. either growth could come through wah way could go risk off. risk off is precisely what we saw yesterday. risk isppetite for influence by geopolitical concerns. how do you weigh those up as we head towards the weekend? >> i think they are fairly complacent. the one that is gained a lot is the ukraine. we read a lot about vladimir putin yesterday, but he is expecting to be paid about 2.5 billion euros. thee in a situation where imf may just end up writing checks to moscow. earnings season, michael? we have seen much of it paid how has it been for you? >> it is about 90% done in
europe. has been better than expected. we went into the year expecting about 12% earnings growth. we are now down to about seven percent. within that context, the two percent we have seen on top load income -- given the lag between company earnings and economic performance, we really want to be seeing european earnings point smartly in the second quarter. there a year on from economic recovery of 2013. >> michael, thank you very much for joining us today. have a good weekend when they finally get there. seven: 55 here in london. five minutes ago go until the start of european equity trade. "on the move" is next. the will be watching
reprieve. >> what is behind this? points good 90 basis higher. can you read a lot into it? no big consensus. >> we will see how the day plays out. let look at some of the indian market. coalitions if the will have more than 300 seats. you are looking at stocks making a record high. the rupee also moving along briskly. let's have a look at the rupee. moody's has a
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