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 talks tomorrow.

>> we will follow that very closely. we will cross back to david tweed throughout the hour. you are covering credit suisse. you just sat down with the ceo, brady dougan. >> that is right, francine. they delivered a miss on net income. we were looking for a billion swiss franc. they delivered 859 million. west -- wealth management is the other side of the story. the question will continue to be asked -- should they rein in the investment tanks -- banks? can they rollout for the provisions? he told me no. credit suisse is down 2%. we will have more from john from zürich. caroline, tesco is in trouble still. is the second year of losses. >> a second year of declining profit. moree seeing sales down than estimated in the fourth quarter, down 3%.

they are very much sticking to wear their plan is, to revamp stores. they are cutting costs. there is a price war going on in the u.k.. 200o is only throwing billion pounds at it. it could hit profitability, although a bit of release. it could have been worse. china could have been worse, tesco could have been worse. investors want to know what is the future of management. we have someone at the home was been there 15 years and people are starting to question whether he is the right one to continue? three carr has been there years as an executive. he joined in 1974 stocking shelves. he has a life-long career at tesco. he is the only man standing in the whole board. the original board that he inherited is gone. , we have tesco, we are watching ukraine. we are watching --

>> janet yellen. what will her words to the market be today? will she be more cautious in what she says this afternoon at the economic club of york -- new york? there is a difference between expensive markets and a bubble. here, francine, is u.k. data in terms of jobless number. 7.1% is the number the market will look for. why? 7% is an important level for the monetary policy committee. markets are rallying. things could have been worse in china. 7.4% was the number the market was looking for. some pretty shaky times last week. when mike ashley sold a position there. tesco is up 3.4% as caroline just said. it could have been worse.

the tensions in ukraine do mind, but what you are saying is a little bit of a relief rally in some of the equity markets. we will see how that bears up with the you came at -- u.k. data and the u.s. comments from janet yellen later in the day. a couple of stocks -- tesco was light in sales on the fourth quarter. what you did see from them was a general belief on the year. 200 and 90.65. has raised iron ore estimates for 2014. rose by production almost 25%. there is credit suisse. investors are disappointed. wealth estimate did better than estimated. maybe there is a message of their great the investment bank, can it stay the same size? can you depend on 30% of your income from an investment bank?

you are number eight is a player. you are number two in equity. there is a divergence there. a quick look at the currencies and then i will fly. let's look at the euro-dollar. let's look at dollar itself. very flat. coming off, even though you see tensions in ukraine, money coming out of the dollar. >> manus cranny with the latest on the markets. joining us is bill. in the past, i spoke to you weeks ago. we talked about violations and geopolitics and we talked about the risks out there. it seems that these risks are escalating. >> i think that some of the risks can be measurable, but some are unmeasurable. i'm struck by the ukraine situation. just before i arrived, i had time. i switched on one of the national news channels. almost nothing about ukraine at

all. yet here, quite rightly, you are focusing on the potential for conflict breaking out. the markets have not really reacted but there is a chance of a shock. so many other risks are -- >> why the chance of a shock? this is flag down. if you are a domestic network, that is one thing. if you are a market, it is your job to follow events like this. >> absolutely. but if we see the current operations by the ukrainians trying to clear out some of the russian -- sorry, not russian, .ast ukraine separatists if we see a flashpoint develop and we see serious violence, then i think markets. and completely focused in and see how that results. that is one of these flashpoint situations. >> what is the chance of a correction on the back of higher tension in ukraine? ukraine, something in

it will be a momentary stop. >> it will not change the big picture unless it does. i know that sounds counterintuitive. the way it could if is there a complete breakdown between the discussions. if that turns unsolvable, the markets will take more and more. i think the markets are also looking at the definable risks like we have mention. what yellen may say this afternoon. i think she will be more careful. there will no view -- there will be no real shocks. >> what about china? >> china is one of the situations where it is in transition. we very much go with your guys. it is looking for value in china. i think some of these tech stock stories are very interesting. >> all right. we will get more from you in a couple of moments. bill blaine. stay with us. here is a look at what is coming up. china grows at its lowest grace -- pace in six quarters.

tesco's troubles continue. standing.price is ♪

>> welcome back. i am francine lacqua here in london. streamingn the move" online, on your iphone, and on the new amazon fire tv as well.

tesco is now gaining 3.5%. that is the most since 2009. this is as we have had some relief in terms of earnings of international units. that fell less than analysts expected. this is because we have seen sales growth in european markets in the fourth quarter. overall, we are a little bit disappointed about market share in the u.k. the international shares are making up for that. let's return to one of the top market stories of the day. china's economic growth slowed in the first quarter but managed to beat forecasts. tom warlick in beijing. asian stocks gained after the news broke. is this more stimulus or speculation? >> i think one of the key

questions coming out of this has growthe is slowed enough to justify stimulus from the government i think the answer is no. gdp came in at 7.4%. it is slightly below the 7.5% target for the year as a whole. but employment remains on track. wages continue to rise. no signs of mass unemployment. i think even though it is slightly distant -- disappointing, i think the government will resist the temptation to hit the stimulus button. rebalancing is a major objective for china's government. is there any sign that we will have stronger consumption in the first quarter? >> there were encouraging signs from the retail sales data. slightly stridently -- stronger in march than in january or february.

in term of the government's objective of rebalancing the economy, there are a couple of really strong head winds. the first is wages. wages are growing, but much more quickly than a few years ago. 2011, urban households were saying 15% increases in their disposable income. now they're seeing 10%. the government's own objective of cracking down on corruption and waste among a large group of officials is also having a negative impact on consumption, especially high-and consumption. >> what about credit growth? the trillion dollar question is whether the government will get that under control. the major objective for this government is to bring greater stability to the financial system. they inherited a system that was struggling.

leadership, they are taking that challenge very seriously. interest rates have been consistently higher for the last year. that has started to take the -- grace indes lending. especially in the shadowed financial sector. the problem for the government though it increases our confidence by financial stability, and also ways on the rest of the economy. >> tom, thank you for so much. tom orlik in beijing. still with us is bill blaine. he is a strategist. we were talking a little bit about china. you are saying that you are not worried about china because it seems like the government has everything under control. we started talking about tech stocks in china. they are expensive but seem to be a better value than some of our contemporary in silicon

valley. chineseoks like the tech stocks that are coming up, bo in particular, look to be expensive but reasonable valuations. they don't look to be stratus that the stratospheric valuations that you were saying before this recent correction in the u.s.. there seems to be less of a bubble about them. the other aspect is that their growth raw specs are so much higher as well. that is still effectively and untapped market. economist in china has a right. it is a question of watching the fundamentals in the chinese economy. they are going to be many-credit bubble burst. withre going to be issues some of the trends that we are seeing in terms of slowdown. ultimately, it is more likely that you will see the economy come out of that instead of seeing. >> because it is well-managed.

>> i would not use the word well-managed. it is managed. >> at least it is something. it is halfway there. you completely excluding -- >> not entirely, but i think it is less likely. i think a controlled opponent will be the outcome. >> you are not too concerned about china. you seem to be happy with the way things are going in the u.s.. the periphery for some of the banks and europe are doing or do well on the back of hope. there were about the high euro. everything seems under control and yet we do not have growth. completek it is a illusion, smokescreen, smoke and mirrors. it is about the central bank pumping as much money as it can into the banks that has effectively trapped there. it is going to be very difficult for the next stage herbal the

rally to occur which will, on , the newof qe imaginative, nonconventional policies. how will they do it? by government ash by -- by buying government bonds? it does not seem like we will see it kicked off in your. it means the banking sector only -- remains beholden to the states. they are fundamentally weak, trapped within the wrong currencies. i do not see the banks getting better at all. there are lots of people saying, let's by southern european banks. >> spanish banks? >> there are stories that are good. an individual bank stocks, some are better than others. but generally the sector is difficult. what you say the sector is bad, that means there could be a few diamonds in the rough. some of the spanish banks have opportunities. i am more concerned with italy particularly. i am most concerned about the german names and i am concerned about angst in general because

overregulation is getting worse and worse. >> bill, i want to get your thoughts on swiss banks. this is what we heard about today from credit suisse, saying that first quarter profits fell 34%, mostly from declines in in investment bank. we spoke to the chief executive, brady dougan. john? >> thank you. the headline number was a miss. look beyond that number. wealth management was better than expected rate investment taking, not better. the question is going to carry on -- should the bank change strategy? should they rein in the investment bank and focus on wealth management? >> i think it was a strong first quarter if you look at it overall with our strategic business. we made 1.9 billion in pretax. that was a 14% return on equity. i think he will be the best in

industry. you saw that in our investment bank as well. we had a very strong performance in error strategic business there. we turn on capital 21%. a lot of businesses performed extremely well. >> should this bank straight -- change strategy, he batted that away to me this morning. he said it is a profitable, competitive business. he gave no indication that credit suisse was going to trim their investment banking business. >> what about the ongoing probe? >> which probe? i think that is the question. it looked like they were making a lot of progress with the department of justice. we thought a resolution might be close. provision and litigation costs are around the billion dollar mark. the question was, is that enough? we know the new york department of financial services are digging deeper. their investigation is rather -- is whether credit suisse help

people of eight state taxes. reportedly, they issued a subpoena to take e-mails, travel records. brady dougan would not confirm or deny that to me but he did have to say this. thesewill have to see how things develop. no, i do not think we can rule that out. i think we are adequately provisioned on these issues and i think we have a record of having done a pretty good job in working through these. we will have to see how these things develop. suisse set aside enough money? cannot rule says he out further provisions and that will be one of the takeaways from this morning's interviews. >> bill, we were talking about banks before. you said you were concerned about the italian, german banks. what about the swiss? >> the whole aspect about what is overhanging them in terms of the tax investigations in the states is a big concern. in terms of credit suisse, i think they had a bit of a mess

is very interesting. they have not got the scale that some of the bigger players have. they are a fixed-income house. it was not as good. exposure of the global banking sector to regulate. risk, i think that is one of the big takeaways that investors need to be thinking about at the moment. you have banks like credit suisse with an enormous sort of damocles hanging over their head. you have other banks in troubles with u.s. regulators and scared that they will do something wrong that will trigger another round of regulations or legal oversight. you have the rest of the global banking community wondering how they are going to meet the ever-changing capital regulations in the states. you have to be concerned about that. the result is, the whole mobile banking sector looks very vulnerable to regulatory risk.

add on that market risk and you would ask yourself why you would be invested. the trick is to go for the diamonds in the rough. >> bill, that is a whole other conversation. we'll have to get you back in. ♪

>> welcome back. turning to the crisis in ukraine. government forces have been deployed in an offense of against separatist reclaiming an airport. or have been wide claims that specialist forces have been supporting the antigovernment forces. how have the russian reacted to these claims? ministryssians defense has not reacted at all to the claims that there were some members of the 43rd russian airborne troops in some of these ukraine cities. vladimir putin has gone on to say that the action of the ukraine authorities to try and take back these municipal buildings is unconstitutional. he spoke to angela merkel by telephone. he said the situation in ukraine could develop into a civil war. the russian foreign minister s

lavrov is also speaking. he is in hanoi at the moment. he is echoing this russian idea that what is happening is unconstitutional. that said, he does still intend to attend the talks in geneva, which are aimed at trying to find a resolution. >> that is key. apart from the threat of eu economic sages, is there an indication of nato taking action if russia invades? >> there is, in fact. the u.s. air force general philip breedlove is nato's top military commander pretty he is likely to prevent -- present lance for nato to strengthen their position. troopsig deployment of that they want to send a message to nato members that they will be there for them and also send a message to moscow.

>> thank you so much. tesco has had a tough past 12 months. the stock is down over 25%. what will it take to turn around? ♪

>> welcome back to on the move. i am francine lacqua. we are 30 minutes in be trading day so let's see how things are shaping up. this is the picture for the overall markets. we had a rally in the tech stocks yesterday in the u.s.. we also had a bit of a disappointing day out of china, but a lot of investors on the markets are seeing this as an economy that is under control. looser thanle bit it was under control by the government a couple of quarters ago. they are not too worried about a

hard landing. the dax getting 1.07%. let's go to manus cranny. you find green, i find the contra stories. quarter for asml. uncertainties in terms of design of what they will want. credit suisse's brady dougan would not confirm that benjamin lawsky had made a subpoena. or issues around credit suisse. it was benjamin lawsky who threatened -- in terms of a new york license. capital, capital, capital. what do you do at the investment bank. yogurt and milk prices have reached record prices.

danone is passing those prices on. one researcher said refreshingly dull. >> thank you so much. these are the bloomberg top headlines. china's economic growth slowed sharply in the first quarter, raising pressure on the government to add a fresh round of stimulus. gdp rose 7.4% from a year ago, just beating estimates. it is the weakest pace of growth in six quarters. high-frequency traders in the eu are set to face toughest rules in the world. there are standards on securities prices and increments, mandatory trading algorithm pass, and mandatory liquidity or a set number of hours each day. this type of trading is under fresh scrutiny since publications of the book "flashpoint." at least two people have died than a ferry carrying more

470 passengers sank off the coast of south korea. at least 100 people remain unaccounted for. south korea's government says that it is still investigating what caused the ship to sink. local media reporting that it sailed into rocks in foggy conditions. it has been a tough, if not terrible start to 2014 for tesco. it has lost market share as well as its cfo. it posted a second year of fallen profits. here with more on the numbers is caroline hyde. despite the international fares are actually beating that, chair prices gained almost 4%. >> we are seeing the biggest jump in tesco stock in more than a year. it seems that they managed to meet expectations on their full-year profit. it was down 6%. that is the second year of declining profit that it could have been worse. fourth-quarter sales did worsen

down 3%. that is the worst performance of philip clarke, the chief executive, in his three-year tenure. the businesses worsen in china and they have a new joint venture in china. they're sticking to the plan. they are focusing on convenience stores. they're opening 150 on those. they're focusing on line. that dominatesny online compared to its rivals. it is not dominating in market share. it has been giving away market shares to discounters. they have been eating away from the bottom and from the top, people are going to martin spencer's for food. as they trade up, they have got to grip their market share which is down to 27.9% according to nielsen group. clearly it is so competitive out there. the competition is not getting easier. philip clarke warning that it is very intense in the u.k.

they have a price war on their hands and while they are fueling it with 200 million pounds worth other companies have been spending -- been spending in excess of one billion pounds to cut costs. >> how does the ceo one-two turnaround the fortunes of tesco? sticking toto be his second overall revitalization plan in as many years. they funneled one billion pounds to updating the stores, making a destination to go shopping in. that seems to be working, to an extent. the stores that they updated have seen sales up 3%-5%. they have got to tackle the price perception. they are more expensive. they have got to put more money into cutting prices. that could dent their overall profitability. he is the last man standing of

the board. he has gotten rid of all of his original board that he inherited three years ago as the cfo stood down earlier this month. in the top.e focus he needs to get his board on the tactics interesting the united states. a year after pulling out, they are going to put in a clothing store. back to you. >> let's dig a little deeper into the company's strategy. joining us to discuss this is stephen springer. tesco is an easy target for us to bash. it is doing so well because sales are decreasing because of market share is dwindling. we forget that it is still number one. it is a huge real taylor. -- huge retailer. >> it has done so well for so long. 15, 20 years. it has put together a sustained.

of wonderful performance. the moment that anything starts to go wrong, we are both surprised and shocked. we knock it because it is so large. largest far the retailer in the u.k. it has a number of problems. >> if you're philip clarke, is there a strategy overhaul that you need to do? is there a change of culture? >> we often say he is the last man standing. is that good or bad? >> the management issue concerns is. it is hard to get a read on what is going on internally. andis the last man standing probably is not well in the boardroom. that is going to be destabilizing to the business. they have to shore that up. the overall strategy will be pretty radical. for all intents and purposes, it is.

what they are doing is along the right track. revitalizing the core hypermarket here in the u.k.. stream icing their overseas operations in italy. it is not what it once was. it is on the right track but these things take time. tesco is a big ship. big ships have very big earnings circles. >> the international union is not doing so badly at all. you say we have to give it time. is it six months, a year? >> it is hard to put a timeframe on it. i think philip clarke's has rightly not done so himself. there are a number of market points, if you like. the modernized -- in the u.k. has set to be completed. that is one measure we can look at. ehe other is the stor refurbishment of tesco extra.

that is no small feat. that is due to be completed by 12 -- by 2017. they're researching 120 stories this year in acceleration of last year. 3%-5% per has been store. that is a figure, but in the context of that business, that is quite a significant uplift. >> how does it stack compared to other supermarkets? we know that discounters are doing well, but in terms of if we take a step back and stop looking at quarter to quarter, is it something that you would like to own or something that you think is a great business? >> it is a great business. i think if you look outside the discounters, the big four are all struggling to varying degrees. morrison's is probably at the sharpest end of that. this is an issue. it is an industry-wide issue. the key is there is no volume

growth in food retailing at the moment. a bit of inflation, but no volume. that makes it hard for any business to prosper. >> how do you increase volume? >> digital is one way. commerce, two growth channels with an otherwise static market. tesco is very well placed in both of those markets. it is the biggest player. grocery commerce, question marks there as to how it could be. tesco is the largest player. you have benefits of scale there. convenience stores -- tesco has than other chains put together. a lot of those stores need refurbishment, but it is a position of strength. springham, thank you so much for your time. we will tell you how maserati

and hold the key to a turnaround. ♪

>> welcome back. i am francine lacqua here ribble london. -- here in london. this is "on the move." and rover announced

partnership with virgin galactic and showed off the brand's new concept car. we took a look under the hood, literally. >> to keep up in the modern world of driving, land rover has had to adapt. for making powerful gas guzzlers, in recent years it has tried its hands at sharp runaround's as it chases a younger demographic. one feature has remained consistent -- being able to conquer the land. its latest advance see some smart 21st-century tech told into a classic car. the suv maker rigged cameras on the grill and a heads-up display on the windscreen to create a virtual image of the terrain called the transparent bonnet. what lies many the car is projected on the hood, offering the driver more visibility. while land rover says the technology is pioneering, it is

currently just a concept. the company has no plans to release it as of yet. , theaying with that transatlantic our marriage is set to close by the end of this year. the cheesy -- chief executive's vision is to build a carmaker that is profitable. we are joined used talk strategy and cars. >> this is a unique proposition for both of us and we have a big spoiler in the middle. ago, before saying it was a spent force. they're still overcapacity in your. >> she is italian, yes? >> i'm ignoring that fact. that is the point. what he has done with maserati is what he will say to investors. he will say, look at what i have

done with the maserati car. it is a $70,000 car. i have taken an upscale and made it luxury. i will try to do that with the alpha brand as well. i think that is the proposition. produce 6 million cars, but it about transporting capacity from the united states on the chrysler brands into europe and vice versa. by using that really efficiently. that is what they're going to present at the new york auto show. they're going to present the alpha going head to head with the boxster. >> luxury cars -- this is what is selling. this is why they want to be there. >> that make sense. look at how well bmw is doing. look at how well mercedes and porsche are doing. i want a piece of that pie, please. think about it. maserati is doing well. the super bowl ad was fantastic. they are selling well in the united states. they're talking about a third

shift coming in. they are still made in italy, which is good news. rari has been- fer taken upscale. there is something missing in their -- alpha romero. i wanted that for years. it is the only thing in my family. >> you have one in your garage. >> the ultimate male -- the alfa romeo, they are not luxury, but midrange. are some of the produce cars ever made. i spoke to the boss of maserati back at the geneva motor show and i am not sure he is full speed doing this, but he is kind of hinting at what they're going to do with alfa romeo. >> don't forget about alfa romeo. there is a lot of work going on and mentally, we still have a fence around it, but it work in

progress. no talking. >> no talking. we are not allowed to talk about this yet. it is coming, but no talking. >> don't forget, dot dot dot. it fits in. isyou have ferrari, which ultra high-end. you have maserati taking on bmw at the top and. can start to you take that out a little bit and that could be a profit driver as well. 4 you think -- >> you think about what maserati delivers the numbers, they will produce about a quarter of a billion in terms of profits this year. that is what they are losing at fiat on the other side. you can understand why this scaling down on the smaller cars in terms of europe and up on the other side. >> i still have an issue of what

they are doing in the fee of 500. it is small. >> you are not allowed to talk about this. >> they are making them bigger, and you kind of wonder, maybe a little bit of dilution of the cool a tying car. >> it is, especially the old ones. >> we're going to look really cool in the past. it was orange. we had a roof that we used to climb in and out of it. it was fantastic. i digress. wear ande going to oculus virtual-reality headset. i can barely wait. you are going to look amazing in this. we're going to talk about tesco. shares are up today, but it feels like a virtual-reality day for tesco because the shares are up despite disappointing numbers. we are going to get a company and that is designed a virtual tesco store. stick the oculus headset on and you walk around the store and you kind of pick your, whatever it is, baby wipes. >> you by 30% more online than

you do when you go into a store. >> you're so much more efficient. [laughter] >> she is punchy on the. >> on this virtual technology, it is also great for warehouse uses. gaming is use in -- leading at the moment, but retail will be big as well. there is plenty of stuff you can use this for. you missed me yesterday wearing google glasses. >> i am jealous. i have to get my own with the oculus. >> i don't think you will look as good. >> we will see. i will buy you a fiver. -- bet you a fiver. let's bring you up to speed. higher.shares are the first collection of become it will launch in 2013.

the brand owns ray-ban and oakley. danone sees company growth at 4%-5% this every they're trying chinaw infant formula in this year. alibaba posted a surge in fourth-quarter profit ahead of its initial public offering. yahoo!, which is a 20% stake in the company, said that sales were helped by a record-setting single day in november. ining up, high-end business humble surroundings rate is as britain's only caviar maker. about, probably, i would say -- she is heavy. ♪

>> welcome back to "on the move ." i am francine lacqua. britain's only caviar maker is ruffling feathers in the industry while moving over some of the u.k.'s top chefs. angus bennett reports. >> i'm going to try a smaller -- find a smaller one. >> ken bening is the co-owner of one of the -- the only u.k.'s cap your maker.

devon, southwest england, he helps grow fish wi the substancee known as black gold. this is his meal ticket. ken has been selling caviar for over a decade. it was a mixture of luck and good fortune that he met ornamental fish growers, the camera shy george noble, and his father. rm cost a lot fa of money. pairing saw the caviar business form. this is no flash in the pan. years toes eight to 10 grow the sturgeon. >> this is the small and immaculately clean room that is used to harvest the caviar from sturgeon. are cut out, washed, salted, and that is

about it. it is a quick ross says for a food that will put a serious hole in your wallet. >> 1500 pounds. >> the european caviar market is closely guarded, run by a select few manufacturers. when they announced they were going to make the delicacy, it ruffled feathers. >> we were once called a fly-by-night. we have been called a lot worse. >> ken says that we were accused of breaching production standards and officials have found no fault very -- fault. >> it is produced with cornish sea salt. -- it is farmed here in devon. it is a unique product and chefs like unique products. >> the brits are really becoming foodies now. stay with bloomberg tv. "the pulse" is coming up next. you can follow us all on twitter.

mr. mitre in terms of where we are on the markets, they are for the moment gaining. -- i you can see the ftse gaining .5%. the ibex .8% higher. ♪ . .

>> geneva is a go. russia's foreign minister says talks are still on tomorrow despite escalating violence in eastern ukraine. >> stimulus speculation, stocks gain. virtual reality to the rescue. we go inside test goes -- tesco's store of the future. that is not real, that is virtual. shares rally.