>> credit suisse profits fall 44% on low investment banking. we will talk to the ceo. in tennessee's it slows growth in more than a year as economy loses momentum in the first quarter. and fears of a siddle -- civil war. they claim that russian special are with anti-government groups. hello. welcome to "countdown."

i am mark barton. it is 6:00 in london. good morning to you. reporters are standing by across the world and ready to deliver stories that will drive your day. as ukraine starts and the offensive against separatist. look atline hyde has a a retailer. just heard earnings from credit suisse. we will have more on those later. have got an exclusive with the ceo, brady dougan. first up, manus cranny is here. it was a miss. the story is missed on the first quarter. in this mentor bank missed --

the investment bank missed. management business is doing better. the question before going into this -- and he said it -- balance. you have got a looming, big investment bank. mess on the headline. dropped. on the ib, drop by 36%. looking through some of the numbers here, the cost at the bank is critically important for brady dougan to get a handle on. 77.8% versus 74 are sent. -- 74% of. -- isch begs the question it time to slim the investment bank for the?

>> this is an article on bloomberg overnight. nearly 20,000 employees. it has started to step back from investment banking. >> the gap widens. >> correct. there are a number of challenges that brady dougan is fighting as he speak. we has -- he has got the department of justice looking into credit suisse activities helping americans avoid taxing -- taxes. they put money aside for that. missing new numbers is one thing you're costs are rising and profits are falling. the second part is the valuation. and of course, we had breaking news overnight.

>> thank you. we will have more from you later . we do have that credit suisse interview with brady dougan. that is coming up on bloomberg in the next hour. do not miss that at 7:00 london time. afteret growth of 7.5% china's gdp slowed to its weakest pace in six quarters. good morning, mia. >> hi, good morning. that is right. the latest indicator is out and it is not looking good. withg in at 7.4% compared analyst estimates. expansion slowed compared to the previous number use on the fourth quarter. analyst i was talking to said a season often has low. here is how to interpret the

figure -- an extended slowdown to put pressure on them to add stimulus to ease up on efforts to curb risk coming from from for example, shadow banking in the property market. the economy forecast has expanded according to the latest bloomberg survey. again, we have you considered this is currently engineering. it is something the government has been trying to do. they had more moderate growth. they do not want anything that will lull. that would scare mobile investors. they are trying to do it while maintaining and curb this church to the dollar shadow banking industry. -- and try to curb this shadow banking industry. >> talk us through the other bits of data. >> sure. the most important aside from gdp is the retail sales.

it gives you a sense of the typical chinese consumer. retail sales raising 12.2% from a year earlier. and that is higher than the median estimate. it could see a slowdown from the previous few quarters. there is another one that excluded rural households. that was below estimates. this is have viewer should interpret the latest data. , they paint figures a picture that all of these indicators are week. if points to -- well they are won't they? i'm referring to easing specifically on the monetary side. >> thank you, may yet. ukraine has started an offensive against separatist. they have recaptured and airport .

david tweed has been following the situation. if it, how have the russians reacted? members ofm is that the rushes every division has been that russia -- russia's airborne division has been seen. they are not commenting on all on these planes. 45,000 -- 40,000 russian troops amassed on the ukraine border on the russian side. vladimir hooton spoke to -- spoke last night. he is calling for condemnation of this crack down by the ukraine's on the separatist. was to see international condemnation appeared on their part, the ukrainians, and this is the acting president saying,

apart from the special forces and terrorist -- they are calling them terrorists, d separatist in the east ukraine region -- there are hundreds of innocent ukrainians who have been deceived by the russia propaganda. that is why they need to take these measures. that russia propaganda is a claims that these or pro-russian separatist are in fact locals and are not being supported at all by the russians. and also that the russians will move in to protect these people from the ukrainians if necessary. we will -- they will move in to protect russian speakers. >> what happens next? >> what happens next is there will be a meeting on the schedule. there is a meeting in geneva tomorrow. to see if theyng can solve the situation.

i think william hague, the u.k. foreign minister, really sums up what is at stake when he was speaking last night. >> we believe we are at a crucial moment in this pressure. russia needs to choose whether it is open to diplomacy and two de-escalation. otherwise, we must be ready for a different state of relations with russia in the next 10 years and we have enjoyed in the last 20 years. >> given what is at stake, the tinstion is how far is pu prepared to go and how far is he willing to take his supporters with them. ? >> david tweed, thank you. today the market is bracing itself for more bad news when it comes to the earnings. .ere is caroline hyde

slowing sales on the car today. >> yup. that would be the worst quarterly performance in the chief executive's tenure. it is the second straight year profit decline. there has been price wars. istish retail showing that -- there is a downward trend. 40% of its products. it is meant to be more upper-class and luxurious. market share eroded. not just happening among the figures. there's a bit of volatility among senior management as well. >> the chief financial officer just stepped down. is -- is theding

way it is now. maybe that is not surprising. this, he isheart of a fantastic store manager. he wants control. no wonder you will have to bring in a new guard under your tenure since he has been at the helm. there many people questioning his own role. if he cannot turn this around, particularly in the u.k.. there is a u.k. chain. he was at apple at one point. it be another person? many analyst are asking, who be having waiting in the wind? there are a lot of rumors. hoping the second one

will work. they invested one billion pounds revamping the stores. making a destination to go shopping in. they brought in artisan bakeries and coffee shops. they rethought in our thinking to focus on convenience and online. that is such a dominant force online, in the u.k.. they will still invest in online growth. 200 million kinds is what they're putting in to reduce the cut of everyday goods. and invested more than a billion pounds to cut prices. be doings not seem to that. maybe we will see more cuts to prices and more erosion to the margins. >> caroline, thank you.

target of 7.5%. we go behind the numbers next. ♪

>> time for today's company news. credit suisse, the second-biggest swiss bank, rockets fell 44%. net investment bank posted a 36% fall in tax profits. the private banking wealth management unit that encompasses all other businesses saw earnings rise by 15%. yahoo! reported first-quarter earnings just over $1 billion. it is the first sales gain since 2012. it was their stake in alibaba thomas the train at ease commerce company, that sent yahoo! shares soaring. alibaba is expected for a u.s. ipo this month. i had a sales surge. deutsche bank is in talks to sell a cosmopolitan resort in las vegas.

they want to end the money-losing venture into casino development. their largest bank is asking more than $2 billion for the resort. this after deutsche bank defaulted on a construction loan in january 2008. welcome back to "countdown." i am mark barton. the time in london is 6:17 a.m. joining us now is my guest. good morning. >> good morning. >> is china making the transition in their economy while slowing growth while implementing much-needed structural reforms? are you witnessing this or not? >> if we look at cruise of the trenches shannon -- clues of the

transition, they are rising more than 10%. meaning that there is probably a slowdown into the overall china economy. rebalancing to the western region. this is good because it is more chineseor the overall concept. they want to grow in albany. they won a good balance between the rural part and the export part. also, we shouldn't forget that china is a strong exporting country. they are expecting a rebound in trade and that -- china would visit from it. >> right now it is week. --t because of comparable you real over look these last couple of months question mark

-- couple months? have aink we will reverse in the future. balance.d of a the next will probably -- >> china is a key emerging market. there are three among them that you have chosen. what you like about them? >> what is interesting is that evaluation is rather compelling. you have a much more attractive evaluation for the upside of having a trade boost. there are political changes. preparing toare

create a new economic agenda. we like it very much from the equity perspective. these markets are interesting. candidate for adding it on the trade. also, emerging market bonds. now there is a balance between the comparison between [indiscernible] and emerging markets. now the ball is on the real emerging market court. it is much slower in terms of peripheral bond. >> and invested in the emerging markets. and this is local that? debt.al

>> local debt. it is a slow-motion exercise to stabilize the currency, but it is happening. >> back to you in a second. technology selloffs. ♪

>> welcome back. this is "countdown." on thisl morning wednesday morning. he 6:23 a.m. in london. my guest is here. you talk about taking profits off peripheral debt. is it too late to start investing in periphery debt if you haven't done so yet with yields on the spanish 10 year or italian 10 year yields? is it too late to start investing now? for investors that are looking at some form of a safe haven, it is not too late. areas a kind of protection from the central bank. there are programs. economy is bouncing back. it looks like kind of a safe place. not totally too late, but

it is very late. on emerging market, that is the other side. it has been kind of a mini dislocation. >> what about the opportunities for investors? is it too early to take a look at some of these internet stocks are not? i think the internet stocks remained expensive. i think the area to look at is probably to go insert for value not for the growth. look atr, we need to sector materials and the

consumer discretionary where there are good dividends. i'm concerned about the consensus at the end the last year. you should forget about it and look for the real value that is behind it. sector, therech is the semiconductor. seeing the semiconductor products. he will be pleased to hear you say that. a pleasure. up, why this investment is not paying off for credit suisse. -- plus, alibaba

baba profits soared. stay with us for that. ♪

>> i'll come back. i am mark barton. let's go to jonathan ferro for the fx check. >> let's have a look at the dollar. got the ukrainian crisis building in terms of momentum with what they're planning to do to recapture strategic areas. janet yellen speaks today. what will she say? thatshe tell the market

the rate might rise? that is the state of the play on the u.s. dollar. the lowest of growth for the aussie dollar. it managed to lift itself off the local the day. if that resistance holds, supports. back to you. >> thank you. these are the bloomberg top headlines. say russianin kiev special forces were identified. as 11eported as many militants were killed when ukrainian troops stormed an airfield. china's growth hit a low. curbovernment is trying to the credit boom all hitting its annual growth target to support employment. and the passenger ship carrying many people stink off the coast of south korea. at least one person died. four hospitalized.

179 people are being rescued. passengers included students and 14 teachers. getting sales from danone. the big news is stick into its target for 2014. revenue growth that matched estimates. thee increases made up for boeing declined. first-quarter sales rising 2.2% from a year earlier. matching analyst estimates. -- they predicted it are seeking to rebuild its nutrition unit in china after product recall and bribery claims in its baby milk business contributed to the first annual earnings decline in more than a

decade. it says it also leads to stabilize its european business. the company is sticking to its target for tony 14. -- for that quarter. credit suisse reported first-quarter earnings that missed estimates. is a banking analyst. christopher, good morning. thank you for joining us. >> good morning. let's start off with the headlines earning. what is your early take away? >> you are spot on. what they called the strategic unit -- it is much as expected. major money flows, but investment banking, 11% decline. i think the market was looking

for about six or seven. we were looking for something like three or four. that was worse than expected. also, that saw the much reduced earnings which was -- >> is the time to shrink the investment bank further are not? >> this has been bouncing around since one to 12. it has to be fair. it was had a stronger income business. a weakness in the fixed income. there is a problem in the macro space. it was not good for the emerging markets. >> it is valued lower despite

the gap between the gap that has widened since the ubs decision debtit most of its trading. is it the right path to take? >> it is a good point. certainly you could see value in tricking the business further. that is really much on the expectation of what it will look like. larger legacye burton credit suisse. there'll be a big bait on this. fixed income is more in the genes. perhaps this is made [indiscernible]

21% in the strategic unit. that is considerably higher than ubs is making at the moment. still, brady dougan, the ceo is missing his own return on equity targets. he missed his own cost to income rate. is it justified? i hate to comment on it. it is difficult to talk about how large some of them are. job.have done a good although the capital did suffer a bit of a set act in the quarter. the back of more regulation. he will come under some criticism. these numbers were not bad, but they were not stellar.

>> and it comes after the company restated results dust about 10 days or so. they boomer taxes for the u.s. tax probe. they had taken charges and fines of roughly $1 billion. is there more coming or not? we thought there would be more in this quarter. they weren't too. i think that is because we are at the stage where what they told us a couple of weeks ago was how far they thought they got in the negotiations. obviously two things have happened since there. the department has come in and started to raise questions of whether or not they were not totally truthful to the authorities in regards to taxes. i fear there will be more. customer you judge

that company -- how do you judge? -- that isto taught in comparison. how do you judge this company on a stock asus? -- basis? >> you look at the net book value of the business. to ubs and acount discount to return on equity. we also look at it alongside a ubs. flattenedal ratio was in the quarter. it will be capable to read turn cash to shareholders in the medium-term. we have said a few times that the bank sector is going to shift back to where it was when i was a boy, which will become a sector all about income. i think these guys are

well-positioned ever and they have a large business to start spinning off hackable back to shareholders. importantly, that is something that will really start to accelerate next year. >> thank you for chatting with us. china's largest e-commerce company, alibaba, saw profits soar. for more, let's go to hong kong. talk us through the numbers first. >> fourth quarter earnings are always expected to be pretty strong. their that came in are even stronger. it eases concerns that the company has lost steam in a previous quarter. there is a rise in revenue and also with the ipo just hanging around, that is definitely good news.

what does this mean for its ipo? >> well, couple of things. there is an average evaluation of 153 billion u.s. dollars. with the recent set of results, the evaluation could go even further up. also, breaking news this morning, alibaba is expected [indiscernible] it we assume that they are raising and $18 billion in sharing those proceeds as an ipo fee, that would mean an ip -- a fee for the banks. that is good news for bank bonuses there. >> ok. we will leave it there. coming up comic seller rating growth. -- coming up, accelerating growth.

plus, a new level of awareness for drivers. a land rover technology to make the front of the car virtually invisible. ♪

>> time for today's company news

. of the world's biggest mining .ompany has its guidance it beat analyst expectations. study of itsd its portfolio of assets focuses on the more profitable operation come including iron and copper, after a decade-long [indiscernible] technologies borrowing money to fund most of its 3.45 million dollar purche of motorola's solutions unit. the offer barth quote standing -- the offer barcode scanning. than plans to take on more $3.25 billion in debt to fund the purchase. the result is only valued at $3.1 billion. says she isrs ceo

creating a team that will make the companies cars as safe as they are fun to drive. this is after the slow ignition switches that are linked to deaths. they will report to the head of product development. welcome back. this is "countdown." i am mark barton. the time in london is 6:45 a.m. there's a car marriage that is set to fully close by the end of the year. build a global auto maker that is profitable. manus cranny is here to talk strategy. what is his biggest challenge. fiat has a capacity to build 6 million cars, but they are nowhere near that level yet. what he has really done with the maserati brand is set it apart and really do that across the board.

148 plants in europe. huge over al capacity in the situation. he has got to invest the show investors, look what i have done with maserati. i'm selling more of them. at the same time, i can bring my american brand and transport them here. >> is maserati key to balancing the books? >> absolutely. numbers. run the --erati, 2012, 2013, 2014 they would sell under 30,000 maserati's. aboutti is going to make quarter of a billion dollars. maserati, a quarter of $1 billion. maserati is going to offset the

mass-market losses. it shows you -- where do want to spend the money? north america will be key. sales will rise. it is all about product evolution. >> we are extending our product range. the next important milestone will be [indiscernible] that will hit the market in late 2015. then we are evaluating a concept that we have presented here in geneva. in southwestyou london. [laughter] are equipped to go on the attack against the giants of our industries.

i watch the advertisement in the super bowl. did you look. -- take a look. right. oh, that was one of those. >> the want to act it out for us? -- do you want to act it out for us? [laughter] >> it is pretty dramatic. it was spoken about by a young, child actor. there are fantastic images of the power of the maserati. >> we are those older men. [laughter] the land rover has unveiled a concept car that could be the way for the future of the brand. is a technology that makes the front of the car virtually invisible.

♪ >> the land rover brand has had to adapt. best known for making powerful gas guzzlers come in recent years, it is trying its hand as it chases a younger demographic. one feature has remained consistent -- being able to conquer the land. its latest advance is some smart 21st century tech built into a car. the suv makers put cameras on the grill and windscreens to create virtual image of what transparent bonny. it offers more visibility including what position the front wheels are in. they say that technology is pioneering, but is currently just a concept. the company has no plans to release it yet. could the way you

sleep with your partner tell more about your relationship? ♪

>> welcome back. i am mark barton. 6:52 a.m. in london. time to look at today's top picks from the newspapers. caroline hyde is here come a

david tweed in berlin. i begin with this store. this is where i get deep and personal with caroline hyde. to put out there how close do you sleep next to your partner? it matters. this is a study. study, of 1000 couples, partners who sleep less than an inch apart are more likely to be content in the relationship than those with a gap that is wider than 30 inches. >> that is the whole then. -- whole bed. [laughter] >> if you sleep within an inch of your partner, your relationship is going to be happy. in addition, couples who make physical contact through the night were happier than those who implement a no touching rule. >> there is a no touching rule?

>> there is a no touching role in my life when i need to get up at 2 a.m. one injure 30 inches? -- one inch or 30 inches? >> is there a no touching role? -- rule? [laughter] >> i think you're happier if you get a good night sleep and not uncomfortable with one dead arm under someone's head. >> when they have physical contact were happier than 60% of those who did not touch. not have any did arm they had to remove. >> no touching. that is a rule i like. [laughter] >> i know your marriage is a happy one. this one made me chuckle. it is in the guardian.

advert.e put up this bad headache? intercutsl gent through the month of april. there is a hair academy in the north korean embassy. it is a night semi-attached house. two guys wearing suits turned up. one took pictures and the other took notes. they said the poster was disrespectful and must come down. contacted.een i do not know if they have taken it down yet. he obvious he felt he has ruffled a few feathers there. >> let's see if david tweed has had a bad hair day. seriousis a more

financial times story. it is a story that goes to the heart of what brussels has been trying to do in terms of busting open professions all around europe come except in their own back door or front door. uber is bans taxis of drivers.nd will fine what it does is it puts passengers in touch with private taxi drivers so they're not exactly licensed drivers. any drivers caught with a passenger will be fined 10,000 euros. in brussels, they say it is crazy and outrageous. it is not about protecting passengers, but about protecting a taxi cartel and it shouldn't happen. >> great story.

"countdown" continues in the next hour. we will give it into do -- we will give you the interview with brady dougan. ♪

>> welcome back. let's get straight to that bloomberg interview on credit suisse earnings. >> i think it was a strong first-quarter if you look at it overall on strategic is mrs.. that was a 14% return on equity. that is going to be one of the best in the industry. you saw in our investment bank as well. we had a very strong performance in our strategic businesses, a of 21%.n capital a lot of businesses performed extremely well. i think that continues to support performance overall. if you look at first quarter,

strongest quarter on net new assets in three years. you can see there is a lot of momentum, and it's doing quite well. dax -- >> these numbers are shadowed. they seem to be extending the investigation. can you ensure they have issued a subpoena? >> we are working with them, .roviding information this is around the cross-border , which we have been working on for over three years. we are going to cooperate and work through the issues. overall we feel like we have made good progress getting these behind us. got the issue settled as well. i think we're making good progress. we are going to continue to work

to get the issues resolved. >> have they issued a subpoena? >> i'm not going to get into details. we are clearly providing a lot of information. fronting the investigations threatened with revoking their license. do you think things could get r?at fa >> is impossible to know how it will go forward. we will work closely and cooperatively. i would hope it would be a very close cooperation on these issues. we will be able to work through them. >> you set aside more money for litigations and investigations. did the recent round of provisions take into account the investigation by the department of financial services? >> we take a look at all of our matters that are outstanding.

we try to take a look at what the results of the issues may be and put in place an appropriate recruit -- a cruel. matters evolve over time. >> how can you assure you set aside the right money? >> we will have to see if it develops. rule it think we can out. i think we have a record of doing a pretty good job at working through these issues, but we will have to see how things develop. >> you have made progress. fcc.ettled with the a lot of people thought you were close to settling with the department of justice. can you give a time frame? issue. is a complex these issues are industrywide. it's a pretty complex issue.

areontinues to be one we working very hard and cooperating with the government here and in the u.s. to try to resolve. it continues to be difficult to estimate when it will resolve. work forue to resolution. >> do you think they are taking i am of a witchhunt? >> not going to comment on that. we are doing our best to work toward the resolution. on a separate issue, russia, violence in eastern ukraine. up in these things show your business? does this impact your business to rent the? -- your business directly? >> the global markets are ,mpacted by increased concerns so that has an impact on the overall timbre of the markets around the world. that certainly has an impact.

in terms of specific impact from things we haven't really seen very much so far, but we will have to see how events play out. >> what is the biggest risk right now? is it litigation? is it a financial market issue? think all those are potential risks for the industry and for us as well. we try to work towards making sure we are in a conservative business against all of those different areas. these issues increase or decrease in importance at during the year. generally we are conservatively efficient. have a strong resilient platform that is quite diversified, so i think we are positioned quite well against whatever may come. do these leave you

personally? do you feel the pressure building, or is this a manifestation impacting the banks reputation? >> i think particularly on cross-border issues, we have worked very hard to get this right. since i took this position as ceo of the bank, we basically worked to shut down the business, to make it compliant, to make sure it's fixed and working right, so i feel good about the efforts by respect, making sure we deal with legacy issues in getting them resolved is something that is very important, and we will continue to work towards that. that's the most important thing to me, making sure people understand the bank is trying to do the right thing and hopefully we can get these resolved and move on. >> for you as the ceo, can we see you at the top of this bank for years to come? >> i think we have got a great business platform.

to worksome issues through. i think we have fewer issues than a lot of banks to work through. dofocus is on continuing to the best job for our clients and our employees that i can, so that's my focus. >> thanks very much. >> the ceo of credit suisse peaking to jonathan ferro. -- speaking to jonathan ferro. just getting some earnings from tesco. >> looking at third quarter u.k. performance, it's worse than expected. like for like sales down three percent. that is more than two and a half percent. that is the worst quarterly sales performance we have seen in his re-year tenure. clearly the environment is not getting any better. they say the environment is challenging. trading profit fell for a second straight year, down six percent, but not quite as bad as expected. we are seeing 3.3 2 billion pounds. >> it the estimates.

>> it is still down for a second straight year. -- it beat estimates. up 1.1%nience stores is in terms of sales. we can see the areas they are having to focus on are the areas of growth. they have taken a write-down of more than a half a billion pounds on china. that had been anticipated, saying, we are expecting them to have to take some sort of hit to the value of the premises. >> they are investing in a retail partnership. >> a new vendor. they have taken a hit, but that's probably to be expected. to scalingicking back in terms of new bills. continuing to upgrade their stores. they pumped one billion pounds into making this -- -- the staff better train.

make it more of a destination. about 300 stores have been updated. sales tend to go up at three to five percent. taking time to drive that through. >> risks are rising. china may miss its annual growth after china slowed to its lowest in three quarters. piece of data that traders and investors were waiting for. the latest indicator, and it's not looking good. china's growth slowed to the weakest pace in six quarters. it's wortht 7.4%. looking at how it did compared to previous quarters. last quarter, seven .7%. analysts i have been talking to all morning say the first quarter often reflects a seasonal lull in gdp.

concern hereiggest is that an extended slowdown would essentially put more pressure on the premier to add stimulus and even to issa up on efforts to curb risk and also speculation in the property the economy this year is expected to expand 7.4% according to the latest survey. that would be the slowest pace and 1990. the analysts said it could ricochet across global markets. that said, the slowdown is partly engineered by the government, which is trying to curb the $6 trillion shadow banking industry and limit overheating in the property market as well. >> we will chat with you later. ukraine has started an offensive against separatist in the

eastern part of the country, recapturing an airport. it claims russian special forces were supporting antigovernment troops. our europe editor david tweed has been following the event. how have the russians reacted to these claims? >> a denied these claims that there are members of the russian 45th airborne division that have been seen in some of these villages and towns. was talking to ban ki-moon of the united nations and described these actions as unconstitutional and he wants to see an international crackdown. the ukrainian acting president has gone on to describe the reason they have gone in there and also saying there are hundreds of thousands of innocent ukrainian people deceived by russian propaganda and the russian propaganda is that the activists acting in eastern ukraine, taking the municipal buildings are locals,

and they have no help from russian forces and that the russians will potentially move re and protect them if the ukrainian forces take further violent actions against them. we have got 40,000 russian massed on the ukrainian border. >> what is happening next? our multi-body talks still taking place in geneva? >> it looked as if they will go ahead according to reports. the u.s., the e.u., ukraine, and russia all meeting in ukraine. i thought william hague last night was good at describing what's at stake for russia here. >> we believe we are at a crucial moment in this crisis. russia needs to choose whether it is open to diplomacy and two de-escalation -- and to de-escalation, and if it decides

otherwise we must be ready for a different state of relations to russia in the next 10 years than we have enjoyed in the last 20 years. eu is also preparing economic sanctions against russia. there are also reports eu leaders will meet eventually and brussels next week for the sanctions, depending on what happens during the geneva talks. >> thanks, david tweed. coming up, the largest semi conducted in -- picking up for the largest semi conductor maker. we will tell you why after the break. ♪

>> welcome back. this is countdown. 7:16 in london. the world's biggest semi conductor maker forecast sales that may exceed forecast. in an interview with christian morales. thank you for joining us. what was the take away from the first quarter? >> we grew year on year by one percent. we had a strong growth in some liker strategic dismisses

the datacenter, cloud, storage inc., networking grew very well. we had the first signs the pc , and within that some products group double digits. veryd 30%, which is positive. >> with other chips, globally sales did fall. the operating loss did widen. where is the evidence? big in obviously traditional. where is the progress within those figures? the reportingit by divisions. we want to reflect strategic objectives we have, and on contribute want to to the new segments like smartphones like tablets.

for tablets the growth is good. we are on target for 14 million units. we also on smartphones did asroduce new architecture well as the first working units in china on the china mobile network. >> you still have just one percent of the market for smart phone chips. when do you think you are going to start growing? >> we are shipping hundreds of millions of units. there is still a lot to be done. they are coming up in the second half of the year. it's going to be very energy efficient. we are going to be contributing .ore to the sector >> the pc market is stabilizing,

which is good news. last year it fell by 10%. when can we have a plus figure for the pc market? what will we go into surplus? >> let's see when we get all the data from the first quarter. were positivekets in the first quarter. enterprise, small, and median business was small. ist is also very positive that 70 new designs are reaching the marketplace for back to school. also saw growth during the first quarter. >> what about emerging markets within europe, the middle east, and africa? what's the story right now? in the quarter that was volatile ? >> last year we had a situation around egypt where we saw impact

of the situation on devices. the russian and ukraine situation is having a negative impact on the business. use of the declaration from the minister of finance saying the situation was a little more difficult in russia. we still see it need for andcture their in cloud data centers. on devices there is an impact. it's also true worldwide. emerging markets have been week. >> is it going to last or not? long do you see this? >> longer-term, 2.4 billion people are accessing the internet. they want to have access to devices. we are also seeing the millenial is, which is young people reaching the marketplace and the workforce. also in emerging markets where you are going to see people working with two, three, or more

devices. the desire to have access to more technology is there. we need infrastructure and better economic conditions. intel is not among the selloff. i looked at the stats earlier, and among the stocks on the nasdaq 100 in the last month for the seven stocks have risen. you have risen by nine percent. i think you are the second-biggest gainer in the last month. selloff inod the technology, particularly internet stocks. >> there is good news on innovation. good news on new technologies. we have started producing 14 more to be and a lot introduced this year. this is positive, and it's about getting a devices to people who have the desire. >> thank you indeed. latestead, burberry's

revenue figures were in line with estimates. we will show why they are warning that exchange rates will hurt our office. ♪ -- will hurt profits. ♪

>> welcome back. in london. china remains the focus for burberry after it reports fourth-quarter sales. let's bring in our european

business correspondent, caroline hyde. how were the figures? >> pretty good. the uk's largest luxury company has been the outperform or when it comes to luxury goods. they really managed to outperform when it comes to far outinnovation. stripping many luxury competitors by embracing online in such a way it has. sales half like for like up 12%. that beat analyst estimates. down slightly from the first half. still, this is a company offering double-digit growth to the market. retail sales up 13%, just shy of estimates. this is a company focusing very much on growing its beauty business. become a sickto pillar for the business. they say that has been

successful with fragrances. interesting it is men's tailoring they say our product and out performers. >> what are the headwinds? >> headwinds are foreign currencies. they are still able to give us a 12% increase in light for like sales. they say this is a macroeconomic going to remain. they say the current exchange rate is material. you convert that back into british pounds. you are getting far less tangible money in that respect when you are reporting in pounds. the impact from foreign currency, but overall they say they see growth in retail experiment. >> coming up why the investment bank is not paying off for credit suisse. we will have more from the first

interview with the ceo, grady dude in. dugan.y ♪

>> welcome back. let's get straight to manus cranny. >> we check in on the dollar. it has moved higher. it is coming off its high. janet yellen speaks a little bit later today. she has prepared testimony. equity markets are set to open higher. the dollar coming off its high level. china delivered the slowest growth in six quarters.

the aussie dollar coming off its lows. analysts say you are going to .9381.istance that will there be more stimulus? suggest chinably is doing just fine as it is and doesn't need a huge stimulus boost. contrary to what some of the other analysts are saying. >> these are top headlines today. ukraine unleashed and offenses in the eastern part of the country. authorities in kiev say russian ces werefor identified. as many as 11 were killed when stormed an airfield. gdp fell in china from a year earlier. the government is trying to curb a credit boom while also hitting annual growth target and supporting employment. a passenger ship carrying more

than 470 people saying off the coast of south korea. at least one person died. 14 were hospital is. at least 179 -- hospitalized. 179 people have been rescued. and included 329 students 14 teachers. jonathan ferro will bring us more from the first interview .ith brady dugan take it away. >> i think we should start with the numbers. we were looking for net income to come around. 59.ame in at eight point investment banking is lower. down on the year. that's a concern for a lot of people. on should the banks focus on private banking and wealth management. that was the question i put two brady dougan himself. this is what he had to say.

>> i think it's a strong quarter. 1.9 billion in pretax. that was a 14% return on equity. it's going to be one of the best in the industry. you saw in our investment bank as well. we had a strong return on capital of 21%. a lot of the businesses performed extremely well. >> i think it's fair to say he was in a bullish mood. he showed no sign of reining in the investment bank. for him it's a profitable business and one it will keep going for. >> what did he have to say about ongoing probes? >> i think this is where the big question is. are set with the fcc. just when you think they are making progress they set-aside provisions of around one billion dollars right now. the question everybody is asking, shareholders, analysts,

rule outight, can they more provisions? i put that to him, and this is what he said. >> it's a complex issue and continues to be one we are working hard and cooperating with to solve. it continues to be difficult to estimate when it may be resolved and what the form of the resolution will be. we continue to work toward the resolution. >> he told me he could not rule provisions, and that is going to be a key take away for shareholders this morning. how big is the whole. ?ow long does it go on for i remember manus cranny came out here to do fourth-quarter earnings. they delivered a couple hundred million swiss francs. that ended up with a loss of 400 million swiss francs.

the question is still open. >> live in zürich. for more than100% 100 million euros. let's take a close look at the italian company and bring in the chief executive officer. a first. thank you very much for joining us today. >> thank you for having me. >> can you tell us the rationale for this deal? >> we have a very clear acquisition framework. our objective is to increase critical mass in markets where we already have our own distribution network. --this case the brand is let's say the group of brands are very strong in the germanic markets. bringing synergy to a topline perspective, particularly outside of italy. we also believe these brands

have a lot of potential internationally, particularly in the united states and sovereign america and brazil and argentina. interested they are in italian style, and we would like to be the once dominating the wave. >> you are on an acquisitions free because last month you announced you are buying roughly distillery for 186 million canadian dollars. is the buying spree going to continue? >> if you look at our track we expect to generate half of our organic growth in acquisitions.

it's part of our business model. we will take a little pause before we move on. >> is there pressure to do vigorous sized deals? industry is in your the $15 billion bid for been. the stake in united spirits yesterday. is there a mega sized deal in your industry? industry is still very fragmented. they should take the top 10 players and present 50% of 25% ofvolume in about 22 value, so it's a fragmented industry. we do what is right for our business. we aim to generate a 10% return pretax in year one or by year two after the deal. if you see what we have done, we times,multiple of 9.2

which means it will generate a it'seturn in year one, so quite a good deal, especially if you compare it to the average in our industry. they are inching closer to 20 times. >> i mentioned united spirits announcement yesterday. it will probably have to satisfy andetition regulators offload the spirits division here in the u k arehat the sort of deal you looking out for? are you interested in that sort of thing? >> anytime there is something for sale we are mentioned as potential acquirers. my response is no comment. frankly, we have done to deals this year. and digesta pause

what we bought and do a good job of integrating it and let's see further on how things evolve. emergingo me about markets. it was a turbulent january. it has calmed down somewhat. you talked about a worsening fx outlook. market for worsening months into the new year? >> from a consumption standpoint we are doing well in all of our emerging markets. in china are wine business and vodka is growing nicely. it's less of a consumption issue. yeare beginning of this when we presented results we were very explicit in saying we are expecting six percent, which is basically double what we got hit with last year. >> what's the most exciting trend we are seeing within the

alcohol and beverages space? really exciting you when it comes to trends? >> there are two major trends. start industry trend the u.s. and spread globally. there are two trends for which we were very well positioned. one is whiskey. fewought wild turkey a years back. another canadian acquisition and also dark rum his position very well. another is classic cocktails. there's,more use of it in particular italian bitters. , ande of bitters particular italian bitters. >> what's your favorite classics. ?

what flickr does it have to have in it? >> when we are talking about classic rock tales, one hot nigroni,right now is which is built around campari, and we are quite excited about that. >> good to talk to you. the chief executive officer of campari joining us from milan. coming up, the potential ipo in the u.s.

>> time for company news. four-yearon raised iron ore production guidance gained 23%. the company says it studying ways to simplify business and focus on more profitable operations. to buyology deal motorola solutions is being funded almost entirely on debt. they plan to finance the deal with only 200 million in cash and 3.25 billion dollars in debt. most companies make technology to help with business control

inventory. mary barra says she is creating a team that will make the cars as safe as they are to drive. this is after the slow response to ignition switches linked to 13 deaths. welcome to countdown. china's largest e-commerce, the alibaba saw its fourth-quarter profits fall. lulu covers technology for us. talk us through the numbers. >> the fourth quarter was always expected to be a strong quarter for the company. company said the performed better than they expected. that was probably due to november 11 sales and also a sales promotion. definitely good news for the is the ipo is expected

as soon as this month and also in terms of valuation. 153 billion dollars. analysts are saying valuations could go up even further after this quarter. >> what does it mean for the ipo? boost fornitely is a the company, and alibaba is also engaging in other companies, investing in a lot of companies, including would just ask. i think his personal aspirations go beyond commerce. he is also interested in chinese environmental protection issues, taking on pollution as a personal project. this week we have a story saying alibaba is asking users to collect water data pollution data points and upload it to a digital map. there you have a civic engagement push right there.

>> thanks a lot. move started roughly 14 minutes time. herewith a look at the markets is manus cranny. big themes. i suppose we had better start with ukraine. >> you have got equity markets rising. yet the rhetoric is changing. there is a real change in tone coming from william hague. the relationship with russia could be monumentally different over the last 20 years. almost an indifference to it. china could have been worse. it depends who you read. it's a controlled slowdown. stimulus butmini not a big stimulus. >> you had indeed. ukraine is not impacting sentiment at all. china could have been worse.

>> the last time janet yellen spoke -- he is at the economic meeting in new york. there is a q&a. we know what happened in her last unscripted q&a. rates may rise six months after. we went on for three weeks out to debate the issue. >> stocks to watch today? >> before we do stocks to watch today, there is a difference between an expensive market and the bottom. aboutwe have over talked mark but i want to see there is smoke coming out of his ears. >> you had better explain what a debt cap is. >> you have this repeat -- reprieve.

those rallies are given up quite quickly. there is still a mood that any rally is an opportunity to grab it and sell. the momentumuggest run out rallies could of steam. that's a personal view. i know where he is going with it. they dropped on all four cause. bounce? dead cat why not just a cat bounce? >> were we going, bhp billiton? they are raising their output for this year. we are not interested in short-term price issues. , but theyybe a bit don't concern themselves with short-term volatility.

and music to the investors years. >> give is that money in dividends. >> that's a fair point. very well done on johnny's interview. we did push him along in terms of preparedness to make more provisions. that's going to be the key issue . >> watch out for those shares. tesco's troubles get worse. half it declined for a second year. find out why sales are slumping the most. ♪

>> welcome back. 7:53 in london. the top corporate story is tesco. caroline is here. >> it's a second year of declining profits. half it down six percent. that was ahead of estimates. that's why we are seeing many calls saying tesco might actually rise about one or two percent. they are relieved it hasn't missed its overall forecast, but sales are not looking so good. fourth quarter down three percent. that was worse than many had been estimating. there is no letdown of concerns. rice cut still to come.

>> they are investing in price cuts. >> they are. than one put in more billion pounds each into cutting their own prices, so tesco has to do the same. they have only invested 200 million pounds. it is carrots and milk and the like. sando did some research. generally 40% are cheaper. even waitrose is generally cheaper. this is what they have to tackle as they are going to bring in the purchase. they have been trying to update stores. >> store refurbishment, trying to freshen it? >> artisan bakery. they have got nice coffee shops. they want to make it more of a shopping experience. they have seen profitability rise where they have trained the staff.

they still got to update the rest of them. share. back their market the market share has eroded 27.9%. >> are they eight percent between the two of them? >> they are very small. are rising. >> waitrose is rising. clearly you are either going low and discount for staple goods or high end. >> he is the last man standing, isn't he? >> for the phenomenal. the last person on the board took over three years ago, and he has now departed. he has a completely clean slate. he started stacking shelves back in 1974. he is a fantastic store manager. maybe no surprise he wants full control.

>> stay tuned for more from the first interview with brady dougan. i will see you nice and early at 6:00. have a good day. ♪

>> welcome to "on the move." away fromt moments the start of european trading. their markets team has everything covered from countries to currencies. here with me now is manus cranny, caroline hyde, david tweed, and jonathan ferro. let's kick off things with you. a lot of focus on the futures in china. >> yes. i read quite a bit. it could have been worse. everyone is telling me.

it could have been a lot worse. some people say, get ready for stimulus. the bloomberg team says, no. things are fine. 11.4% is manageable. some others are a little bit more under pressure. it could have been worse. that seems to be the driver. i'm amazed with what happened in the past 24 hours in ukraine u.s.has not troubled sentiment and china data. >> we saw a little bit of a tech rise there. let's cross over to berlin. as the conflict in eastern ukraine continues to escalate? >> yes, it does. lavrov, the russian foreign minister is in hanoi at the moment. he is making a tour of east asia. he is saying that the action of the ukrainians trying to regaining the buildings in east ukraine are unconstitutional. he says he still plans to attend the geneva-ukraine peace lk