>> earnings from the second largest in france due any second. a litigation. he also said the bank is not under formal investigation for fx activities. >> we have been sequestered on some issues but we are not under investigation. >> we will see if europe continues to be a weak spot for the brewer. >> janet yellen said she will stay with the tapering plan. fed chief's first

testimony. >> and a bloomberg exclusive. morrison has contacted private equity and waning interest on taking the supermarket private. ♪ >> hello and welcome to " countdown." >> it's just gone 6:00 wednesday morning in london. bloomberg reporters are standing by ready to deliver the stories to drive your day. manus cranny has been digging into janet yellen's testimony. asia shares are gaining for a sixth day on the back of janet yellen's comments. >> looking at the bank of england inflation report today and stay with "countdown" for these big interviews. right now.g we will speak to the ceo next

.our for more insight >> our very own francine lacqua d's for anto harro exclusive interview with ahmad al-sayed. we will hear from that interview through the morning. heineken just coming through. full-year operating profit coming in at 2.9 4 billion euros against analyst estimates of 2.96 billion euros, so just a shade lower but in the same region.

they see organic revenue growth in 2014. interesting insights coming through there. releasinghey will be targeted cost savings of 625 million euros. that's not a complete sentence. you get the headline number basically in terms of the full-year operating profit 2.9 4 billion against the 2.96 expected. plenty to talk about with the cfo in terms of contrasting the developed and emerging markets. second-biggest bank in france seeing profit doubling almost the analyst estimates. , 300 22 million euros compared with the loss one year

earlier of 471 million euros breaking down a stake in its .erivatives broker profit more than the 163 million euro average. benefitingoing is from europe's economy which has emerged from its record recession boosting earnings from consumer banking and lender revenue rising in france and russia helped by deposit inflows of also achieved about one third of its 900 million euro total annual cost cuts plan by 2015. beating earning estimates today. in the deputy chief executive of to bloombergpoke in paris about the bank's latest earnings and the impact of litigation cost. >> the fourth quarter of last year, we had defined from the european commission of 400 and

60 million euros. this is commiserate to the risks we have in terms of litigation. stilltigation risk is increased on the banking industry. forave you had requests information from the foreign exchange situation? >> it is not under foreign invested -- not under tradingation for forex but we are not under a form of investigation. >> let's stick with the financial themes. the dutch financial services company releasing numbers. the analyst estimate was 254 million down from 1.43 billion. of asset again because

sales one year earlier. it's nearing the end of its restructuring program posed by eu regulators as a condition for the bailout back in 2008 and they have until the end of 2016 to complete the sale of its european and japanese insurance and management activities. the bank said the tier one ratio was 11.7%. that is the measure of strength. .ng earnings beating estimates >> more detail on that bloomberg exclusive story that we brought to you in the headlines. the founding family of w m morrison is said to have contacted private equity funds to gauge interest on taking the private retailer private. they said the family has so far been unable to find a buyout partner due to concerns about slower sales growth and the size of the deal. any buyout may exceed 7 billion

pounds. the supermarket declined to comment and if a deal did take place at anything like that price it would be the largest purchase since 2007 just to give you a little bit of context. lasted moreing that than five hours, federal reserve chairman janet yellen made her first remarks in the role setting the bar high for a change in policy. cranny hastor manus the details. the keyword, manus, continuity. to be toed steps seems take away from janet yellen. five hours of testimony and she chose to answer every single question. never been done in the history of a fed governor. she answered every single question with a smile on her face. the senses she will govern from the middle. credit suisse says it took them so long to pull the trigger on

tapering that they will be loath to put a stop to it. headlines drop, i was also watching it. the only noticeable change, ,atching the emerging markets they are watching closely the recent global volatility. quite frankly, my dear, they are not perturbed. another phrase there. this stage in development did not pose a substantial risk to the demand economy. shock thedoes not chief economist at the oecd and i caught up with him just as these headlines crossed. >> the fed is looking at the global implications but that's different from saying they should change to a monetary policy stance because of real-world implications. the lesson i have drawn is that in some emerging economies have

a structural weaknesses are deeper than was believed so they need to be addressed by domestic holidaymakers in those countries. >> no surprise there from mr. oan.ern one -- pad sometimes, central bankers don't necessarily get the points until it's a little too late. 55% of global demand, bit of an international issue. i'm not being overly facetious -- possibly, i am. like she's waiting to look at the data. >> not wrong there. when it comes to the other big contentious issue, forward guidance, steady as she goes. unemployment is well above where the fomc wants it to be for the mandate. full recovery is far from complete and it's almost a re-tapping of the board in terms

of where we are with these rates at least as long as this remains above 6.5%. meeting, below six and a half percent. talking about the long-term who wantd, the workers more work. >> market reaction in a word? --tch janet also basically >> janet basically said -- >> she won him over with a smile. yellen's comments boosting confidence. john dawson dawson is in hong kong with the details. >> continuity was the main buzzword today. also reassurance and relief. four and a half hours and

convincing them that there will be no change from the burning key moves. that's a relief. the u.s. and latin american markets, nothing dramatic. best two day game ends five months. the nikkei said today and again. the rest are pretty flat. half a percent gain so nothing dramatic. thus performers of the day down to the chinese trade. reassurance and then wonderf ul word, continuity. it's a great word. >> imports and exports beating estimates. what are economists saying? >> unexpected again. about as atalked concern. nevertheless, unexpectedly

rising. therefore lots of trade, if you like. the widest since 2009 and very encouraging indeed. chinese stocks, hong kong, thailand, australia all rising more on the china trade story perhaps more than the fed story. >> john dawson in hong kong. >> let's bring this closer to england. the inflation report will be closely watched for any update on the forward guidance policy. the rate of unemployment in the u.k. at just 0.1% from the banks 7% threshold to consider an interest rate rise. jonathan ferro has more. months of the first phase of forward guidance from the bank of england, it's pretty much dead. they tied it to an unemployment rate of 7% but they did not see it falling to that level by 2016

and today they find themselves not 0.1% away. they will have to refine the forecast and tweak forward guidance to explain what they will be doing next. anotherl target threshold because this is clearly not the way to do it. correctly will bring you live coverage of the bank of england inflation report at 10:30 a.m. >> more on the inflation report. our next guest will weigh in on what the central bank will tell us later on today. stay with us. ♪

>> time for today's company and news. toyota recalling nearly 2 million prius vehicles worldwide. half of the cars affected are in alln and it applies to third generation vehicles. there have been no accidents or injuries related to the recall. in nearly 500 million euros investment. demand in china grow by an estimated 57% by next year.

opening a new development center outside of berlin, the software maker wants to incubate new technology and foster young programmers. to newer to transition cloud applications delivered over the internet. welcome back to "countdown." i'm anna edwards. be usingf england will its quarterly inflation report to revamp the policy. wants to assess the for the next report. we are joined by david. , so manyuidance possibilities. let's talk through them. the threshold of 6.5%, provide a

rate forecast, follow the fed in detailing the rate outlook of each member. which one, if any, might they adopt? >> at the end of the day, it's too early to go out with a major change in forward guidance. i would also argue that the unemployment in the u.k. declining meaning that the structural unemployment rate could be 6% or lower. there's no reason why it could not be 5% at some point. >> could you explain that a bit nonaccelerated inflation rate of unemployment. put it in layman's terms about why we care. good luck. [laughter] >> without a thesis. there's wage inflation and

the unemployment rate should be consistent. at the moment it's below 1% and what would be considered lower than the inflation target. back in november, the employment rate went below 6.5% and now it could be below. you asked where we got the unemployment rate just above 6.5%. it accelerated in the second quarter but falling back in the third quarter. to the major interest bank. >> many economists say we do not understand about productivity. do you think there's been an in more for bringing

variables to the forward guidance? will they add other elements or ingredients? >> it's all about businesses and markets. they will not raise the bankrate until it is stronger. particularly businesses. the idea here is to spend the .ash the movement. >> are you worried recovery may be too much based on housing? >> one member cap what is driving -- when we look at what is driving, other elements of business services have been driving it.

it is almost as big as manufacturing and it includes butwhole gamut of activity not the agents. >> will they be giving any more details on how they make the forecast? many have said it's not too good. upheld in august, they at the time that you were .onsistently above most market participants and most other forecasters have been from 2014dp numbers overall. it is welcome news. cracks economists are in the best place to criticize other economists but they often don't like to. -- >> economists are in the

best place to criticize. you very much. more with david 01 after this short break. yellen appears before the house of representatives yesterday for the first time. she will be before the senate tomorrow. continuity is the theme. did david agree? stay with us. ♪

>> welcome back to "countdown."

i am mark barton. years and 7ee billion dollars having been spent on next the ration, the company still finds dry holes. let's bring in international correspondent hans nichols. is 15 billiontion in net income. what you really want to look at newf they will announce any finds or wells. used to stand for "can't find preservers." from the good reserves ivory coast. they need to be more diverse. last month, they told french lawmakers at this stage, discoveries have not reflected the efforts we are taking.

we have not come up with new reserves. anna, mark, it's not for lack of trying. the announced exploration and they spent $2 billion, 20 felt it was up to $2.5 billion -- in 2012. was 2.8 and $10 -- $2.8 billion. >> had today ranked against their peers? >> they are 21st out of 28. bp is third on the list. that wildcat had or big well you are finding.

they have not got to azerbaijan but they need to find more. hans, inyou so much, berlin. >> janet yellen speaking to congress. david a lynn stays with us to talk janet yellen. ♪

are'm mark barton and these the bloomberg headlines. janet yellen staying with the burning keep program -- with the bernanke program. she testified for the first time as fed chief. she said there was only a notable change would prompt them to slow the pace of tapering. >> it is not a panacea and i think it is absolutely appropriate to consider other measures. >> a growth accelerated. data showing a 10.6% rise in

exports unexpected. most predict that a gain of just 0.1%. shaun whiterder failed to secure a third consecutive half pipe gold. he finished fourth in sochi. he expressed concerns about the snow before the final fell in his first attempt. representingiouri switzerland claiming victory. hello and welcome back. i'm mark barton. a.m.me in london is 6:31 be giving thell bank of england inflation report. banks.1% away from the

seven percent threshold for considering an interest rate rise. jonathan ferro has more. we are not bringing -- >> they had a second ago in november. they have to find a forecast for unemployment. they will have to tweak whether they drop or keep the forward guidance is up to them. >> what are the options. give us all 920. >> it is that sort. the one option is to do what you said you are going to do. to look as a threshold

at things like wages, a broader set of variables. there are not an incredible amount of options but the really would to predict the forecast on where they think the rates of interest are going to be. you could just do that. or you could do with the fed has been doing, show the individual policymakers as where they think .ates will be in the future the news has been around the labor market. this really is the mandate, price stability. see inflation going low, you can decipher how long they will keep the rates low. they want to emphasize rates will stay low for longer. the message is how best to communicate that. >> let's bring back david elena

from jefferies -- david owen. in the inflation report, the projections for inflation, growth, a whole host of other things, plenty of commentary and a little charts they will spend days going over. >> unemployment will probably rise next week. we have the numbers published that was flagging and is now showing that unemployment will pick up. >> that's confusing. >> they tend to move around on a monthly basis. i put money on the unemployment rate going up next week just to confuse matters further. we know there are substantial slacks and a labor market. there are a lot of people working part-time and on

contract and they represent over six percent of the labor market, higher than most european countries. the bank has to take that on board. >> the new fed guidance seems to be that rates will stay low past the point at which unemployment creeps below 6.5%. why does the bank of england not say the same that it will stay low well beyond 7% is breached. >> there is some confusion about that. 6.5% is probably where they would be comfortable with the unemployment rate falling towards. maybe lower. it's a good news it is coming but announcing essential that when they think it's going up is not a bad thing. hawkish --not so meaning you do not inc. rates

will rise so soon as many economists have ejected in the u.k.? -- have predicted? >> if anything, the bank will move earlier. let's be clear. if you exclude financial services, u.k. gdp is now back where it was excluding financial services. if you include, it is still below. substantially above where it was. inflation, probably a lower inflation forecast. wage inflation is still very benign. that inflation problem moment in the data. >> let's talk about janet yellen. were you surprised there is not much more reference to emerging markets or is that understandable? >> their mandate is focused around the u.s. economy.

of a contagion issue, a systemic problem, and we see that feeding through to global growth. itiously, the view will be is up to other countries to deal the u.s.ather than taking up other countries problems. >> they will have to go through the tapering process. >> my colleagues in the u.s. were not surprised at all. >> the indian central bank governor, you don't feel any sympathy? >> they could use macro prudential policies if they felt it was progress. day, the fed the is not the world central bank.

it needs to set hollis he for the u.s. economy itself. world growth is still incredibly weak. been growingas incredibly slowly compared to what we saw precrisis. trade we saw increasing data out of china. what do you make out of that? exports to the developed world is ahead of many economists estimates. some would suggest that point to the fact that these economies are linked. why are we talking about a china slowdown and development? don't you think these things go hand-in-hand? >> the eurozone is still the most important trading block. 27% of its gdp is exported and imported. that is also the eurozone doing

slightly better. i say slightly, but it is crawling along. everything is connected in the fed has to take on board what's happening in emerging markets. it's a bit of a black box. we don't really know what's going on there in china. >> the unknowns. >> we track all trades data that is released. world trade has been picking up but it is all very weak. >> david, thank you for sparing the time for us. chief economist at jefferies international. >> heineken released earnings earlier reporting a drop in profit last year. haspean editor david tweed more. >> it did come in a whisker

under what analysts were expecting. they were looking for 2.96 bi llion and it came in at 2.94 billion. they did warn about weakness in the emerging markets sending the share price lower on the day, 10% lower since it came out with the october statement where they were talking about weakness in places like india, brazil, russia. now they are saying they are seeing a gradual recovery in the global economy and that is going improved trading conditions in africa, the asia-pacific, and latin america. that might be construed as good news. iny are saying consumption europe is expected to be lower. the other thing to look for here is the total cost program. that could be very important because it is cutting costs over three years from 2012-2014.

that is on track to take 665 million euros off the total cost. that is something to look for. >> shares of an underperforming the sector. our traders beginning to see value in the stock or not yo? >> it has been increased to a buy and the reason is because of the evaluation. the shares have been underperforming the market. they see them rising 10% and the catalyst for that would be any improvement in organic growth which is what we heard about today. improvement ine those emerging markets. also the lower import cost are very important because it could easily translate into earnings before interest and tax. one final thing is that the finding -- founding family of heineken has been buying up stock.

>> thanks, david. 20 president obama playing host to francois hollande last night. who attended, what was on the menu, and the french president's schedule today. >> our very own francine lacqua went down to the famed london 's totment store harrod talk with the ceo who was also the ceo of the qatar investment authority. ♪

>> welcome back to "countdown." i'm mark barton. >> and i'm anna edwards. the qatar investment authority, one of the biggest sovereign wealth funds, have a stake in many british companies. it spent $1.5 billion buying harrods. breaking the clock caught up with the ceo of the qatar investment authority to discuss his outlook for the store and other opportunities he may be considering. it has been a few years since our acquisition and i think we have done a lot in the number

.hows the improvement we have put a lot of money into it and we are doing our best to take it to the next level. britishds is a big brand. is there any expanding? >> i do not want to disclose it that we have a plan on what we want to do, how we can do it. >> does this showcase your commitment to britain? >> it is one of our main areas of investment. we have harrods, other investments in britain, and we are welcome. we are happy to invest more. we are a global fund.

reinvest globally. we diversify our assets you graphically with asset classes. >> president francois hollande .ent alone to the state dinner plenty of conversation companions and wine as well. hans nichols joins us to tell us which ceo steve the coveted invite and who sat next to whom and the wine pairings as well. tell us more. >> what are you more interested in, the seating or the wine? i'll get to that later. the question was who was going to sit next to president obama is not the first lady of france or whoever occupying the current chambers of the president of france? they went with a studio head out of harlem.

next to the first lady they had the american comedian stephen c olbert. elon musk, the ceo of marriott who are the enough was a mitt romney supporter. dreyfuss,s, julia bradley cooper, jj abrams. caviar, fingerling potatoes, beef, blah blah, dried blue cheese. dessert, i like this part. the hawaiian ganache. here is the fun part, the wine. a californian, washington, and virginian. all states obama won. i know the vineyard. the 2009 blend, they are known

, the blend isot 22 pounds online, that is what $35? ronald reagan had 35 state dinners but president obama has only had six. who switched from french wines to american wines? liked thosen really californian reds. he convinced them they might the superior. >> it sounded like they had a cheese course before the dessert in keeping with french tradition? >> we always serve the cheese before people get there. we have no idea how to throw dinner parties. you, anna, would not blunder in a similar way. >> he obviously wants to bring

business back to france so he's meeting with mark zuckerberg and sheryl sandberg but he's also talking about tax avoidance. they want to bring businesses to france but do not have tax avoidance to bring revenue and from the french components. >> there is always a big fight at my house at christmas about what comes first, the cheese -- not think mere mortals such as ourselves can never get to the bottom of that one. >> time for hot shots, a look at the most compelling images of the day. of gettingf us tired more snow, here is an idea. scope thing giant figures inspired by the sochi olympics giant figures. it is one of the biggest winter

even. , athletes enthusiasts showing off by a balancing on top of oddly shaped events. next up, milan. could this be the end? one man's quest for endless crispiness as we know it. after years of eating soggy hot pizzahas proper through the vents on top and bottom of the box. to keep you a crust happy. do you have an issue with soggy pizza? >> i would not put a lighted match inside of a wooden box. the night, we discussed newspaper picks for the 20 best

singers of all time. today it is the 20 best guitar ists. ♪

>> welcome back to "countdown." just over an hour away from the start of most european trading. let's have a look at the newspapers. jonathan ferro joins us on set

and hans nichols joins us from berlin. , 1000 tips can use for tax evasion and avoidance. iegel"ame out in "der sp so i will be rifling through this. it has been dominating on all of the various tax gambles. haver members of the spd been squirreling money away in switzerland just like mark barton. we agreed not to talk about that. sorry that was on air. [laughter] >> we want talk about anyone's tax affairs. beststerday we had the 20 top lyricists antedate the top 20 guitarists. who else down number one? jimi hendrix. watching his performance from woodstock, that is, for me, the seminal performance. page, george

harrison of the beatles that routine -- at 13. he co-wrote the hit of the lucky."aft punk "get no queen, no eric clapton. a lot of big guitarists are not included. there are two women, nancy wilson from heart including. >> if you watched this come it was fantastic. it has become the blue ribbon event of the winter olympics, more watched than the downhill championship. the overwhelming favorite, shaun inte, never dropped a trick the olympics ever concentrated on the half pipe and there he goes -- he drops the trick. he did not medal. >> that means he fell?

>> what you scored in the qualifying was enough to win gold. >> plenty of earnings coming up in the next hour. stay with us. ♪ . . .

>> it is an early beat for france's to get bank. >> the outlook of france is a better for this year than it was last year. we do not expect for france significant growth before two years from now. >> heineken says that it sees sales advancing. that is the world's are largest room were. -- brewer. >> they weigh their interest in taking the supermarket prof -- private.

"countdown" i am mark barton. >> earnings from the biggest dutch financial services company ing came in the last hour. profits fell 64%. ceo patrick to the flynn for more insight. ther emma we will hear from cso of the world's heard is rumor. is down forlacqua an exclusive interview. he is the ceo of the qatar investment authority. >> earnings just raking. it is the third biggest energy

company in europe. 2.46 billion euros. that is a little bit below estimates. elsewhere, they are also telling could exceed its asset sales program in 2014. the budget is stable at 2.8 oh yen pounds. they see improved refining and chemical profitability. to 2.2 8 million barrels of oil and equipment per day. that is a little bit lower than the estimate that we had, which was for production of 2.3 one million barrels of oil. the 2014 investment outlook is also coming.

>> the hearing lasted more than five hours. janet yellen made her first public remarks. she set the bar high for a change in policy. manus cranny is here. you said that she answered every question. >> some siebel -- some people say in terminable. i think it is about communication. openly communicating one thing. one thing that is important to the mortgage markets, the treasury markets, small markets, is the continuity of communication. that was done by janet yellen. she is going to govern from the middle. it has taken a long time to get to this point of tapering. they are not going to stop. i think the benchmark is high before they could even consider

changing direction from what they are doing. she did bow her head to emerging markets. we have all thought about the fed talking about emerging markets. watching closely emma recent global market volatility. we are not bothered. this stage, developments do not pose a substantial risk. fair.s not she is a greater economic mind than i. global demand comes from the emerging markets. we do not need to pay any attention to it. i caught up with the ocd chief economist. he is not surprised. surprisedt i am not that the fed are domestically driven. >> let's talk a little bit about

foreign guidance language. >> that is reassuring. the zero rate core door is where the market wants to be. she focused a lot on the underemployment. this was interesting. she referred to the long-term unemployed. >> those who have been out of work for six months? than where theer fed are happy to have it. people wanting to -- wanting more work. this is underemployment. they want full-time. this whole debate is something that they are watching. you may be on the direct road to taper, but we are far from happy. we are far from done. you could have a monster tivoli accommodative fed.

england and mark carney will prevent -- present the inflation report. guidance on unemployment. .1% from the bank's seven percent threshold. berate the here to bank of england's forecast on unemployment, not gdp. >> it is a communications issue with the fed. a bit with the bank of england as well. they did not see this hitting until at least on a 16. here we are away from it. they are backed into a corner. they are going to have to communicate a message that says that rates stay lower for longer. unemployment at one percent is

not the way to do that. >> how long have we got? >> you have a threshold of seven percent. you could broaden the variables. you can look at wage growth. you could do something really bold that most people do not think will happen. this is where we think that rates will be over the next couple of years. the fed did something similar. a put this where they think rates will be. let's go back toward central banking. we are not the fed. >> this could be where the news is today. their forecast for inflation. if they do forecast that over the next couple of years. >> what question are you going to ask the governor? >> competition. >> bloomberg will bring you the

live enck of england inflation report. >> we will dig into heineken's latest earnings. says that it expects sales to advance this year.

>> time for today's company news . toyota is recalling nearly 2 million prius vehicles to update their software. the recall applies to all urged generation vehicles. the company says that there have been no accidents or injuries related to the recall. eurorly 500 million investment. the world's biggest yogurt maker could see demand in china raised by 57% by next year. demand for foreign brands are rising. chinese consumers see them as being safer. a software maker says that it wants to incubate new technology from young programmers. they are trying to transition from business programs stored on

computers to newer cloud applications delivered over the internet. welcome back to "countdown." i am mark orton. >> the world's third-largest brewer reported earnings. is it about mergers and acquisitions or innovation. we will speak to our senior out of college rink analyst. it is a tough job, but somebody has to do it. over recent years, slower growth in developed markets has been upset by better growth in emerging markets. is that still the trend? >> in the long-term, yes. you look at the results with the troubles in mexico and nigeria. those economies have slowed down.

they have got huge potential for volume growth. on the other hand, they are susceptible to economic slowdowns. beer consumption suffers as a consequence. less people feel that they can afford it. hiccup in the a nigerian performance. is this one of the stories we need to be aware of? >> it is. in africa, heineken is quite strong. get sharpmes when you slowdowns. on the other hand, you will get a fast uptake as soon as the economy recovers and people can afford it. it is whether they can actually afford the products to drink those products. >> talk about western, central, and eastern europe.

we will start with central. wheat consumption there was the reason for the third quarter half it warning. >> you can say that central and eastern europe armature -- are mature beer markets. they are not dissimilar to western europe. the consumption has reached a peak. you have markets like the czech republic. what we're seeing is that b rewers are trying to find ways to encourage more consumers into the market. it is not so much traditional beer products. you are looking at flavored beer. moving into beer mixes. >> are they taking into these offshoots or not? >> they have seen rapid growth

the past couple of years. whether they will be able to maintain that, time will tell. --is an area >> is that what we mean when we say innovation in the beer market? ?utting fruit flavors into beer >> the idea is to bring more people into the market. younger consumers. ewers are constantly going on about the need to get the penetration rates to women consumers and beer. not as many women drink it as men. you also look at the categories. bugs it already has fruit flavors. >> you have got even flavored ciders. >> flavors on top of that. craft beer is big, isn't it?

tell me about the juxtaposition ying a beerbrewer buu company. part of the allure of the craft beer company is that it is more independent. you want to be drinking a craft if a big behemoth ultimately owns it. >> that is one of the attractive parts of craft beers. they are authentic, they are small, they have a back story. if they have heineken behind them, it loses that. they have got to be -- the most important factors are taskete and more interesting flavors. consumers numbers of

are bored with the standard pale tasting loggers. -- lagers. >> they talked in more optimistic terms about europe, not because more people were buying beer, but because they would introduce more expensive beer. >> that is more of what brewers are looking at in these markets. categories,trong looking at heineken's results, they still have their imported premium lager. there is opportunity. miller has done well. they are not particularly reagan western europe. they focus on key markets. they focus on brands in the u.k. that had rapid double-digit growth. >> a quick word on mna.

sap anddeal would be miller. >> it is conceivable. not in the short term. it is possible. at the moment, the key thing for the brewers is to focus on these new products and moving into cider. maybe moving into nonalcoholic drinks as well. oriental or worries and south korea. that is increasing. one thing we will see more of his companies trying to pick up chinaall local brewers in to build distribution strength there. >> thank you so much. ing saw its profit drop 63% in the fourth quarter.

we will talk to patrick flynn for more insight.

is 7:21.me in london ing reported earnings of the past hour. profit fell 64% in the third quarter. we will get more insight from

the company. good morning. thanks for joining us. >> good to speak to you again. >> would you grade your performance? how well do you think you would perform in the fourth quarter? given the explanation of your grade? >> outstanding. i will tell you why. a very goodeved underlying profitability. that is disposable gains. we have predictable gains in 2012 which are not recurring. you look at the underlying results. 22% increase for the year for the bank. i think that is a very strong outcome. we have the insurance operating result of 21% as well.

in addition to the strong profit growth, we have made significant improvements and significant progress in our transformation program. in asia, the investments i referred to earlier are done. we completed that earlier this year. they are behind us. and we repaid the state. significant momentum and progress in the transformation program and good profit generation in ongoing business. >> you are near the end of the restructuring program. what is left is the european and japanese insurance division. will you spin it off or sell it? give us an update on the plan or the timeframe. >> you are right. we are focused on the ipo of the european insurance business.

japan as well. we are on track for that. we will be ready to go this year assuming conditions are favorable. we have made a big step forward this quarter by clarifying and improving the capital structure for that insurance business. it has made big rye grass in terms of the solvency level -- big progress in terms of the solvency levels. we have increased the cash holdings. a little bit more required their. improvements to the capital structure as well. us a very just give brief expectation of what you are expecting from that and how prepared you are as a company for the outcome of that review? quite a bit of discussion going on now about

exactly what it entails. we do know that it is going to be a lot of work. operationally, it will be significant. in terms of the financial impact , it has not started. all that i can say is that the dutch regulator conducted their miniature aqr in terms of provisions and in terms of l gde's. using external bodies to do the work. similar to professional firms which would probably be involved in the european event. the outcome for that was negligible for us. provisions financial were lower. >> i have to ask about this oath that all board members of banks and financial companies have had

to abide by. essentially, you had to swear to god to preserve and enhance confidence in the financial services industry. part of this new ethical code. the whole industry will have to abide by that by the second half of this year. do you believe this will stamp out the unethical behavior that many think led to the 2008 financial crisis? >> improving trust in the banking sector is something that helps all of us. this is the only step to achieve that. it is an important step to take us forward. we do have another sector to improve confidence of our customers and the banking sector. this was one positive step in that direction. >> great to chat with you as always. patrick flynn there, rated himself a+.

>> coming up, heineken said in its earnings that they expect sales to advance this year compared to last. we will hear from the cfo.

>> i am mark barton in london. janet yellen is pledging to retain the policy of gradually stay -- scaling back the stimulus program. yellen said that there will be a notable change in the outlook of the economy that would prompt policymakers to slow the pace of tapering. >> monetary policy is not a panacea. it is appropriate for congress to consider other measures. >> the bank of england governor mark carney will consider the inflation report today. unemployment hovers just .1%

from the bank's seven percent threshold of considering an interest rate rise. showing aal data 10.6% rise. most analysts predicted a rise of just one percent in the official data. >> welcome back to "countdown." the ceo spoke about the resilience of the trench consumer banking unit. in an interview in paris. >> last year, the general environment in france was week. specifically with a weak credit

demand. that the global return of our french activities, we have maintained a cost-based flat. is a bitok for france better this year than last year. we do not expect significant growth before two years from now. the new policy of the french to bement, which has executed this year and next year has to be a positive outcome for france. >> there is a problem with the decision how you cope talks it is a problem for the industry. the problem on the banks. and the tax cost also is an issue that the governor is trying to address. >> coming up, bloomberg goes inside of a famed bloomberg

department store for an interview. and investment authority owns stakes in credit suisse. i am about to speak to him about his strategy.

>> welcome back to "countdown." the third-largest brewer heineken reported earnings today. joining us now from amsterdam is the heineken ceo. i wonder if we could start why talking a little bit about your central and eastern european businesses. how have they performed and how much were do you see those markets as being now? >> it is true. we have quite some difficulties in eastern europe markets overall. they were down. lot wethat environment a have performed relatively well, increasing share in a couple of markets. i think that is the game in central and eastern europe going forward.

more premium brands and more innovation. >> can we talk about more emerging markets? in africa, nigeria is one of those markets. today, you said you have seen a bit of a pickup at the end of honey 13. -- 2013. how nervous do you feel about some of these emerging markets? know, we are very positive on africa when you look at all of the underlying factors. they are strong for us as rumors -- brewers. 2013 has been a disappointing year because we saw the growth fading away. the underlying elements are still there. this encourages us the last quarter. in a country like nigeria, we had mid single

digits for growth. these markets are great for beer. beer is the drink of choice. you have a very strong and growing population. overall, economies will continue to do better. >> and i ask about the mergers and consolidation within the sect eric? can i ask about mergers and consolidation within the sector? this is something that could come in the sector. difficult toously be as specific on this. we have seen a big consolidation in the industry. we have been and active participant in that. this results in the situation we are in today. we made a good

acquisitions in latin america. more recently, the big move in by gaining full control of asia pacific breweries. it is not only about consolidation, it is about organic growth. you see we are building green fields. myanmar. we are expanding in countries like ethiopia. that is how we further continue to grow. >> what are the innovations in the drinks market that you are most excited about now? looking ahead this year, it will be about innovation and not about mergers and takeovers very is that the way that you see things? which innovations are you backing? >> we are very high on innovations. 13.1 billionn into

in revenues in products that were not in the market the last three years. that is now rolled out in 31 countries. we added 19 countries in 2013. with lemon juice or fresh juice. expanding the consumption moments of the beer category is very much competing with soft drink consumption. that is a very positive thing betus. next to that, bwe on cider. cider has a lot of potential across the world. it is starting to grow in the u.s. we are putting a lot of efforts behind that.

>> let's talk about pricing. sab miller was talking about some of the successes they have had in some of the pricier brands or bottles of beer in european markets in particular. despite the macroeconomic headwinds perhaps. is that your experience, do you see european regions to be optimistic about pricing? overall, we see that the higher priced products are performing better than the total market. we see that with our heineken brands and other brands. ofrall, we reached a revenue 2.7%, which is positive. going forward, we are a little bit more prudent in our forecast on that revenue. overall, it will be more german by mixed than pure pricing.

that means higher growth for a higher margin. for brands and also packages. >> i know you're eyes are on the business right now. you must be thinking about the winter olympics. the parties that take place in to behold.re a sight i understand that one of the parties even hosted president putin recently. it tell me about your experiences in sochi. >> as you know, since the 1992,cs in barcelona in we have the heineken house and that is a place where sport families and friends gather together. with the good successes of the dutch olympic teams, you could

imagine that there is great atmosphere and the holland heineken house in sochi. >> i would imagine that there is a great atmosphere and a fair bit of drinking takes place as well. heineken's cfo joining us from amsterdam. move" starts in precisely 18 minutes. she spoke with the chief of qatar's sovereign wealth fund. talks it was a great interview. qatar does not have the biggest sovereign wealth funds. companies are very president. companies such as credit suisse. they are the second biggest shareholders with barclays. i just wanted to get a temperature of where he saw his next strategic investment. there are plenty of opportunities looking at infrastructure.

he is also looking at commodities and emerging markets. >> we are forecasting this year. europe is doing fine. america is optimistic. they are doing well. storyould be the biggest in america. this could be interesting. in the end, we have a global vote. >> where do you see the next big opportunity for yourselves and investors? >> it is about the quality. comes, we are to remain open. we are ready to work with other institutions, with other partners. opportunity, we will

take seriously. we are involved in many deals. with barclays, with credit suisse. value for the stake holders. for the management, for the shareholders. >> you mentioned infrastructure. -- mentioned embodies commodities. you always want to be associated with company names. is that the secret of your success? n to a fourthin-wi party, that will make it sustainable. was his first television interview ever since he took the helm of the qatari investment authority about a year and a half ago. him about barclays.

i asked them about companies that they had a stake in. much.o not interfere too ofy have about six percent barclays. he does not meet with the ceo to tell him what to do on a day to day basis. we have that full exclusive interview when we talk about harris. at 8:40 londonup time. >> futures are indicating that stocks will open higher. is it the yellen affect? >> it is the forward guidance 2.0. we will go through and talk about the inflation report for the bank of england. we have a pretty packed show. in precisely 14 minutes. >> i know you will be precise. more since is said to have

contacted a private equity fund. they are interested in taking the supermarket private. joining us now is manus cranny. we understand that they approached apax private equity. this would be a heck of a deal. it would be the biggest deal in terms of target equity. do you remember boots? >> they are still there. >> can you find anything? but they are owned by private equity. >> that is the whole crux of the matter. have you got deep enough pockets as private equity companies to get up and do a deal? you are looking at somewhere in the range of $11 million. we understand that they might be together. it might be two private equity

houses together running one business. we have disruptions anyway. there is a big call for change. we have a hedge fund in charge of one percent of the company. take your properties and seldom off and get some money back to shareholders. we understand that it could be cbc. the stock is approximately five percent higher. >> what could we see from the family if this transpires? >> this is a man that was part of the business for a very long time looking at some of his public statements. this is a family that has reduced its holding in 2011. from around 16% ownership. he went on the record and he said that you cannot please all of the people all the time. you are going to be out of touch with your customers.

when i say that, i am being slightly colloquial. this has been established in the north of england. typically and the united kingdom there is the perception between the north of england and the south of england. he can very much go back to his roots. you are neglecting a core of the business. these are the kinds of words that was used in "the daily telegraph" article a few years ago. reducing your stake, being critical of dalton phillips. i potentially understand that he is going to take the company private again. whether that is later than other grocery retailers online. tell us how the business is performing. >> you can dress it up anyway you want. it is going to be a tough 2014.

they are late, aren't they? they have only just signed up to online deliveries. wherestraight quarters sales have been going down. this will wake you up. >> market is not here. he will be salivating. >> i provided a function and used it properly very it does not happen often. dalton phillips came into run this business 3.9 years ago. dalton phillips and mark. dalton phillips came in and he has delivered a negative return of just over 1.5% over that entire period. boland, they have furniture and clothes. 13% and climbing.

there is a lot to be done online. rusch restores are rising at the slowest pace in nine years. just as he wants to take them private. >> coming up on the program, mark carney presents the fourth quarter inflation report this morning. we will have more on which part of it the markets will be watching.

." welcome back to "countdown i am mark orton. >> plenty of macro themes to be watching today. we will be watching the inflation reports out of the u.k.. >> they tied policy to an unemployment rate that has fallen much quicker than anticipated. i am not the only one giving them a hard time. they have not touched on this. maybe next week it could climb higher. maybe around 7.4%. we could move away from the threshold. from a1.1% away threshold that they did not expect to hit until 2016. >> those options are plentiful. >> you can cut the unemployment threshold. you can look at things like lack of growth.

it is putting it out there for interest rates. >> you come out there and you are under pressure. >> especially when there is an election next year. it is a big issue on that side of things. old-school special banking. where do you see inflation being? >> that could be one of the inflation -- headlines, the inflation story. mario draghi is speaking. >> he has a keynote address. progress through crisis. this got rolling from the german constitution on the unlimited bond buying. the european court of justice. what is he saying? >> i look forward to seeing you in the audience for the inflation report. 10:30, you will be there to ask that question.

>> i will spread out there. >> "on the move" is up next. >> a private equities fund to weigh their interest in taking the company private.

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>> welcome to on the move. we are in bloomberg plus european headquarters in london. my exclusive interview with the chief executive. moments away from the start of european trading and our markets team has everything covered. is jonathan now ferro, manus cranny, and david tweed joins us from berlin. manus, futures are indicating a higher start the trade today.

>> janet yellen answered every single question. beme assure you, you can sure that this woman will not leave any rock unturned. language that is far from done. far from happy. easy street. we are there. the 04 door. whatever you want to call it. -- the zero corridor. what everyone to call it. -- whatever you want to call it. consensus, thet this. coming out with this is to watch. puts without a doubt. manus was watching janet