>> the investigation into the drug company after bribery allegations in china. >> a message from america. to frenches his case lawmakers. >> we come to build. we do not leave when times are tough. divided over who should head the european commission after the weekend' collection.

-- weekend election. down."come to "count let's tell you what is coming up on the program. in under 20 minutes we will hear from the ceo of the hotel accord. we willon bloomberg. talk about the company's recent agreement to buy more than $1 billion worth of european hotels. >> live from kiev with the foreign minister. >> alexa smithkline is facing another criminal investigation. it is accused of bribing doctors and hospitals in china. caroline hyde the details. what exactly do we know? >> a statement was put out yesterday stating that glaxosmithkline had received an

open formal criminal investigation into the commercial practices. that is what the office in the u.k. has told them. this is amid bribery case is being handled by the chinese police to glaxosmithkline in china. ofthis is a month investigation. two of them coming together. >> much wider than that. in china, mark riley who led the , it is alleged he offered bribes to doctors and return to -- for using glaxosmithkline drugs. , it is alleged he offered bribes to doctors and close to $500 million of expenses, treating and sexual favors. this is concerning stuff. plaxico -- glaxosmithkline said it is committed to operating the

business in the highest standards. there are not just allegations. >> this is what is phenomenal. china started the investigation in june 2013. since then the probes and investigations of spread. allegations of wrongdoing in lebanon and poland. , the not forget the u.s. justice department has been looking at glaxosmithkline. in 2012 they settled. they pleaded guilty and settled $3 billion. that was the biggest record fine at the time saying we illegally promoted prescription drugs and we failed to report safety data. >> they are not the only one in the u.s. that are under investigation. to balance that out. the bannerame in and was i am going to clean up

glaxosmithkline. the ceo. is it fair to say that there is pressure or is that extending it too far? there is a -- up to 45 individuals named. >> the pressure is building on him. he is the chief executive since 2008. he vowed to clean it up. it does not seem to be happening very quickly. 2011 the revised incentive plans . u.s. sales were up and we are no longer doing -- going to give you bonus dependent on sales. not managed to spread that compensation plan or revise that outside the u.s.. they have promised to do that. at the end of last year they plan to stop demands to doctors for fees to coming to speak at medical events. it is a promise. perhaps you need to have a bigger overhaul.

perhaps rough it is not doing quite so well in the last quarter. alston.attle for ceo meets president hollande. of have toe u.s. ceo say? it was a very grand affair. a very grand appeal. >> that is right. it is very rare that a u.s. ceo appears in front of a french lawmaker. it was supposed to be the french head of jeep. make this a to personal matter. appearing in front of the economics committee. bid for to defend the

the energy asset. reminding them that ge has been presenting for the past four years. at represent 7 billion euros in annual revenue. but would not be absorbed they would come by businesses and create a true global leader based in france. >> ge has committed to grow employment levels in france with likeus on high-value jobs manufacturing and engineering. this is in addition to the that they already have in france. in addition i believe there is more to develop small and medium enterprises that support the power industry. >> in order to reassure coulders he also said g

that couldsiness and be part of the package. he promised to keep activities and that was the concern of the french government who want to preserve france's nuclear energy independence. >> what i find it entertaining is the fact that jeffrey immelt siemens doing his set piece. what did he have to say? head andas the french woulde said, siemens present an offer by june 16 and that should be a swap or an

alliance where siemens would get , getting of business the real unit. it would be an iconic combination in terms of the transport unit. combining german high-speed symbolic actvery that would have the favor of the who hasovernment supported the bid. back to you. you for that. >> after the european parliamentary elections the focus has shifted to choosing the next president of the commission. -- junker yunker emerged as a candidate.

junker.onot opposed this came from angela merkel hilliard -- angela merkel. here is where we stand on things. she only offered lukewarm support for junker. in with 34%.e , the topis whoever won candidate should go into the head eu commissioner slot. it does not look like that will happen quickly. the curious thing about this is he has opposed -- been opposed

by members of his own party. junker has won the support of the men he bested, martin schultz. the two otherg, candidates. they would except junker in the top job. there seems to be a lot of force trading. there are all the other positions below that. >> where is angela merkel on all of this? is she one of the backers that junker could count on? >> going into the meeting she said that he is our candidate for the position. she was very it open to the possibility it could be someone else. is, "we have to

look at someone of a larger tableau of candidates." it boths to be playing ways. publicly voicing support and indicating that he perhaps is not her favorite candidate. >> thank you. the latest on the lyrical debates over the european commission. >> and rates, credit support, the measures that will come next. ambassadors are expecting fireworks on the ecb. ♪

next time per day -- time for today's company news. will count its mortgage -- cut its mortgage trading business. the cuts mostly would affect .eople in connecticut we have breaking news from

ahold. under 400 million euros. rio tinto cutting jobs as its following gold mines a review aimed at reducing costs. they declined to give the number of positions affected. expansion has been stalled. been underent have talks for a year following the expansion of the mind. welcome back. >> european leaders are wrestling with who will lead the european commission. let's take a look at where the economy is heading. great to have you with us this morning. has run alike merkel

job on her hands, deciding who should run the eu. is it important we should see a change? is especially important now. the question is do they want a change? not sure [indiscernible] the starting point is for the first time the european parliament were supposed to have its say in who would be leading the european commission. within the head of state they should look at who is [indiscernible] with renzi. same has not gotten the [inaudible] merkel'st come down to decision to back junker?

>> she [indiscernible] onlynnot be the candidate.there is interaction as well with the uk. widely reported as wanting a new broom. great deals with a of experience in leadership. euro forown as mr. many years. is he the candidate that you need? federalist handed it. it is different [indiscernible] another weak candidate like we had in the past is no good at all. there is no leadership and there

is no progression. if there is a need to reform something you need somebody new. i am not sure you need someone who will [indiscernible] there is clearly going to be a debate. >> what about the ecb, we are looking forward to the next ecb meeting. you think the market is expecting fireworks. >> they can have it both ways. there has been [indiscernible] that people do not want to expect. they want something but they really do not know what. there is a gap between what the ecb [indiscernible]

and what they can deliver. >> finding consensus again, another topic of conversation. thank you. doubling down on european hotels. we will speak to the ceo of the court, europe's largest hotel operator. they spent 9 million euros expanding their portfolio. and edwards will have that exclusive conversation. ♪

>> welcome back. we are joined by the chairman and ceo of accor. coming to talk to us. you made these deals to buy these hotels. you have still got some cash. are you looking for more hotels after this deal? >> of course i am. we used 900 million out of a 2.1

billion cash availability. are we going to look for more? yes. interaction has to be a credit to the shareholders. either we meet our prize we do not meet it and that is fine, we will keep our cash. there is no fisher. >> am i right in thinking that you sold these hotels in 2007 and now you're buying them back. can you tell us much money you have made or lost on these deals? exactly breaking even. -- we have made more than 450 million. that was not part of the equation. it was a matter of basically adding accessibility and being a better investor. it was the right decision.

againtime to be an actor and to be proactive. >> there is a lot of talk about assets will be bought. over whether internet to -- intercontinental hotels will be bought up. is that a trade -- a trend we will see in europe? solidis a very good and industry. it has been booming in terms of international travelers. supply is increasing. tailwinds.d i have no idea what is going on [indiscernible] nine monthsselected ago. i have a lot of work ahead of me . i have a plan. let's exercise on the plan.

>> what kind of performance are you seeing in the business? have you seen that rebounding as we see signs of economic every? >> it ha >> it is bouncing back in the south of europe. the volume is here. we have to maneuver the price on the hotel rooms. >> and on the budget end of things, how are those is performing? we have seen other as this is suggesting that customers are getting demanding. you need to offer more. you need to offer more facilities in the budget hotels. is that your experience in terms of the trans-you're dealing

with? x yes. is opening one budget hotel every three days in the world with our phenomenal brand. we know that market inside out. great brand which satisfies a small and medium price but it is going the right direction. we have been suffering for the past year and a half. we are not suffering anymore. >> thank you for joining us today. great to hear from you. joining us from paris. is the golden era of property coming to an end? we will discuss how one property developer views the situation. .> russian troops remained we will bring you the latest on life and crimea owing its annexation by russia in march.

stay with "countdown." ♪ >> welcome back to "countdown."

i am manus cranny. let's go to jonathan ferro for an fx check. >> the euro getting weaker just off year high. a.m.sales -- 11 it has been all about mario draghi. ecb is concerned about low inflation. he repeated there's no debate

about the goal which is to return inflation to 2%. the euroas called it versus sterling. >> ukraine's new president says he wants to talk with president putin to stabilize the situation in eastern ukraine. says it could put an end to the conflict. european leaders have failed to quickly endorse him at the next -- as the next president. his conference in july's european union and drug detractors at a time -- and drawing detractors and a time. this -- ands strong

where growth is the strongest. it is in response to a changing market. >> we saw a lot of the issues. it is -- we have positioned the bank well for it. this is part of the natural cycle of the is this unit we have done well. and --d like to target >> welcome it is over. of the good old days are gone sadly. --na's largest developer as david ingle as is in hong kong. is this true? what does it mean? he is the biggest developer. it is a fair assessment. what he is saying is gone were

the days where everybody made money out of property. i lived there for several years. people came in droves. flip the price and you became wealthy. if you look at the situation, it is difficult if not impossible to buy your second or your third property. rices have gone up. -- prices have gone up. what has changed is that even though he cut prices, that doesn't solve every problem like in the past. provides the chinese property. big change is right now credit is not easy to get.

they're trying to tighten their grip. we have got another report as well, haven't we? debt.s about bad it is right. we have this with report the 10 biggest banks. we are basically seeing a forward-looking indicator. we talked about overdue loans here. some of these become nonperforming ones. it is an porton -- important

start tohen the bank reclassify that into nonperforming. this is tied into the property story. aboute not only talking property prices. there are several publications in china. it will eventually hit the banking industry. i will leave it there. back to you. >> ok, david. thank you. we bring you breaking news. looks like they're about to do a deal. this is the filler. $1.4 billion in cash.

full into the debate that they have put in together. back in february, they said they would have specialized skin treatments and create this new skin health. part of that was by taking full control. it was a 50/50 joint venturer with l'oreal. they are waiting for final approval on that from regulators. the other part of the creation of nestlé is the purchase of this canadian company, valeant. dermatologyese projects for 1.4 billion u.s. dollars. let's move on. rbs is looking for stiffer capital rules. we go to caroline hyde for more. >> this is all about

mortgage-backed securities. nowe's also a group -- we in the united states there are capital requirements. assets.billion worth of you need more money. that makes a lot of businesses far less readable and cutting hundreds of jobs there in the u.s.. the people who are affected have not been yet informed. easts was one of the b trading flies. i spoke to people who are working there. you are literally speaking -- sitting around -- they were literally sitting around. >> it is fascinating. the security unit in

the u.s. -- he said, look, the golden years are gone. it is interesting he said that. he's said we can't get the money we used to. the business by about two thirds over the next 12-18 months. be tilting up other area us -- building up other areas. they are getting back to the basics. they have got to scale this back. it was the biggest bailout in history. his promising 5 billion pounds. well will you get that from? -- where will you get that from? >> i mean, that is a great thing to have it at the end of the

day, what are the shareholders left with? what are you left with and how do you sell off the government stay? >> crimea post attic station is starting to feel very russian -- exation is starting to feel very russian. >> the trouble with crimea starts with getting their. -- there. the rosa go through ukraine are all but closed. that is until russia as a bridge to stand the distance. it is legally speaking ukraine. no need for a passport though.

as far as they concerned, this is a domestic crossing. it, since russia annexed crimeans have been somewhat start get a new passport can take weeks. the ukrainians are not allowing men between the ages of 18 and 60 into the ukraine. even you -- with ukrainian passports. the call us terrorist. >> ukraine and foreign banks have all closed while many have yet to open. those cash machines and credit cards do not work. even in the cradle of orthodoxy, prices are quoted first and ukrainian money. did business in a contested region is not easy and potentially illegal. golden arches and much more stand deserted. tourists also face obstacles.

place where the allies met 1945. a couple months ago, we could come here without a visa. not anymore. there wasn't any unrest while we were in crimea, but rush is clearly concerned there could be. -- russia is literally concerned there could be. one area was banned. ♪ tourista's newest destination is fascinating. they have cut the water supply and further inland the are expecting a drop. but they say even with the trouble, it is a price worth paying. ryan chilcote, bloomberg, crimea . coming up, some of the most

expensive streets in the world with a gorgeous lease and shopping. we tell you where they are after the break. ♪

today's company

news. a criminal probe in the u.k. after allegations in china and that the boys bribed medical professionals. and accusing european union regulators of bias and said they should step down from the case according to two people familiar with the matter. they argue that competition --mmissioner and his team they said a cartel existed in the case. jet airways india reported a loss and names its fourth chief executive officer in less than a year. it would implement tough measures to return the

probability and establish a major cost-cutting program. welcome back to "countdown." i am manus cranny. >> i am anna edwards. it is 6:45 a.m. pitch for made a social responsible capitalism -- mark carney made a pitch for social responsible capitalism. >> warm and fluffy. we are talking about it. a book was written on it. great stuff on forbes and the richest people. and the poorest. stats thate kinds of make people talk about these kinds of things. it does not just free market and capitalism to blame. it operated under a veil of capitalism. many of them were not under this discipline of market forces.

it is not free market. something that carney touched upon was the too big to fail phenomenon. that is not about free market. >> we are replacing implicit privilege of two big to fail with the full discipline of the market. the leaders of the g20 have endorsed measures to restore capitalism to the capitalist by ending too big to fail. we have identified those institutions. we have named them subject to higher standards of resilience. we have a range of tools of they can be distraught without disruption without cost to the taxpayer. there are big bailouts we saw in this country. it is something they want to prevent.

>> christine lagarde was there also. what did she have to say? .> took a similar stance pushback against the too big to fail phenomenon. there are things we need to clear out. what was interesting for me is ever the speech -- ever the speech. it was about the monetary stimulus and the impact that had on a quality. itthe raised asset prices -- would benefit the borrowers at the expense of savers. on the assets themselves, the bank of england qe, the debate

is it has been one of the biggest courses of inequality over the last five years. that debate will be ongoing. happened?uld have >> there is a word -- lehman's. >> thank you very much. >> hong kong is home to most expensive real estate in the world. betty liu recently took us on one of the street in hong kong to see what a few million dollars will buy in real estate and how much? ♪ kong is a maze of stores. shops on top of shops. to help me sort through all of this is this guy. great to see. >> welcome to hong kong. should we go shopping? >> would love to. it is my favorite sport. >> hong kong is where you come to shop. if money is no object.

they are all here. the landlords collect some of the highest rents in the world. .e are in front of a store if that a record? >> the most expensive in the world today. >> how much would this get her rent? >> kerlin the market for about 400,000 hong kong per month -- about 400,000 hong kong per month. the street has transformed in the last 2-3 years. it goes from more mass-market oriented store such as levi's a nd mcdonald's, etc. >> now the street is dotted with luxury high-end stores. aying skyhigh rent is no

problem for the luxury retailers here. >> sales are very strong. >> louis vuitton? about $700 talking million just here in the city. >> combined market, i wouldn't be surprised if that was the pricing of the numbers. as a brand, it is a great place. on the program, new recommendations for losing weight has come out from the national health group. we'll have that story and more. ♪

>> welcome back. i am anna edwards. >> i am manus cranny. without a newspaper in my hand. because hansved nichols is standing by in germany. we could've done the same as they. -- seamlessly. >> i hope i'm standing by. i have got a story today this is the door to bond promises to promiseseutsche bond

to have -- it means you have internet access. will havews is we wi-fi in every airplane and then you can no longer hide from your bosses. on trains, we are for internet. on planes, we have got to be against it. [laughter] traumatized.y spacesrnet in confined -- there's something disturbing. we had a big debate about the london underground and whether we should have it there very you can get internet reception there only at the stations that leads to some level of stress. can margarine stop the spread of divorce? this is fascinating.

there is a website that says you shouldn't relations between an increase consumption of marjorie and a decreased chance of divorce. what his turn to do is make the point that correlation is not causation. i got that at the very end. >> weight watchers. diet. of the protein only weight watchers visited the daily telegraph. two thirds of the united kingdom should be sent to a company like weight watchers according to the national institute for health. a 12 week course to find out you should not eat cake. this is ludicrous.

indeed, they have many other worthy things to do with their budget. >> "countdown" continues in the next hour. ♪ .

>> the u.k. fraud office opens an investigation into the country after bribery charges. ceo makes his case. to build. >> leaders are divided over who should head the european commission after the weekend's dramatic elections.

a warm welcome. it has just gone 7:00 here in london. bloomberg reporters are standing by ready to deliver the story that will shape the day. ge's bid asfollow the ceo meets with francois hollande. we walked through the rally for the top jobs at the european commission and beyond. another criminal investigation in the u.k.. the drugmaker has been accused of bribing drugmakers and hospitals in china. caroline has the details. what are they saying? >> this is the first formal confirmation have had that the u.k. is investigating. they face criminal investigation.

we got a statement that the office has opened formal criminal investigation. there is no direct link he ain't drawn -- being drawn as to whether this is linked to china. time they at the same open this investigation, earlier this month we had things handed -- a 10 month investigation handed to a unit in china by chinese police. a ramp-up in concerns about the bribery investigations happening within china. alleged to have offered bribes to doctors in return for having used their drugs. it hasn't been said by the office this is directly linked to the chinese.

they looked to be a reiteration of what you are already telling us from last night, saying the fraud office has opened a formal probe. they went on to say they are committed to the highest ethical standards and will whopper eight fully with the faa. you mentioned china. -- will cooperate fully with the faa. >> since china started focusing companiesaxo other have been drawn into the fray. many lawyers have flagged this bet glaxo smith kline could facing legal risk because of potential corruption a broad. this has happened in the u.s. the justice department has been saying, potentially they are bribing officials in foreign countries. in fact, they pleaded guilty in

2012 following the biggest decline on record because they failed toegally report safety data. this is something that will hit home in the u.s. and the u.k. because of dealings abroad. >> is this piling on the pressure with the ceo? he has been there for a while. >> its 2008. he vowed he would clean up glaxosmithkline, but not as much as we would like to see. they said, you will no longer get a bonus dependent on the sales you make if you are a u.s. sales representative. the new conversation hasn't filtered into other countries as quickly. it doesn't seem to be enacted yet. only at the end of last year did they say, we have plans

in 2016 to stop paying doctors to speak at medical offense. offense ---- medical events. perhaps the overhaul is not happening as quickly. sales in china are being deprived by this. there is concern over the reaction so far. >> caroline hyde with the latest. general electric and siemens made their cases to french lawmakers regarding plans for the energy and transport company last night. this morning ge's ceo will be meeting with francois hollande to talk about the future. usc -- what did he have to say to lawmakers? >> it was a head to head battle

with the french head. he came to paris. initially it was supposed to be the french head of ge, but he said last night, i decided to probably because french lawmakers have been pretty bid for theout ge's power unit. confident was pretty the bid would go through. that he would protect french and and sell the business but would not be absolved rather they would create a true global power player based in france. >> ge is committed to grow withyment levels in france

a focus on high-value jobs like manufacturing and engineering. this is in addition to the employees they already have in france. i believe there is more we can do to develop small and medium that support the power district. >> another big concern was france's nuclear energy independence, something also addressed to french lawmakers last night. the activityo keep in steam turbines based in .rance until france relies on nuclear for 77% of energy needs. >> siemens also had their word at the hearing. what did we hear from the german business? >> the head of the french unit

spoke just before, and it's important because the french government is getting very impatient about the bid. they are urging siemens to come forward with a fair offer. the french head said this would come by june 16 at the latest. treatment,e equal equal access to their books. would be their offer where theyf swap would get the rail unit in exchange for the energy unit. that kind of swap is obviously

having the favor of the french government because they are really in favor of an alliance andeen france and germany, they say that saves the transport unit. >> thank you for joining us from paris. let's tell you about a breaking news story and the engineering space in the u.k. they do not intend to make a further bid at resident. they are abandoning plans to buy after the latest offer was rejected. they do not plan to pursue the opportunity any further. we believe they made a compelling proposal but said that meso rejected that proposal . that was an offer put on the we continue to watch that story. an 51en of trade is minutes time. after the european parliament elections the focus has shifted

to electing the next head of the european commission. junker --d jean-claude junker was head. >> of you really care who the be, book as going to room for brussels at the end of next month. one thing that was clear. there won't be a quick decision on who will be head of the commission. it should be juncker. the support of angela merkel. topidea was whoever was the candidate was supposed to get the votes of all the heads of state, the heads of government that are going to be be siding it. -- o be be siding it. deciding it.

clear david cameron is opposed. at the same time francois hollande indicated he could accept juncker. you also have opposition from the hike -- the hungarian minister. a lot of the wrangling needs to take place. it's not just the top job. it's who is going to be president of other aspects. done, but needs to be this idea of having a quick president put in place doesn't look like it is going to happen. >> we will watch and wait. is it time to buy tech? whynext guest tells us investors should be watching tech.

>> time for company news. nestlé will buy valium dermatology products. this will support didn't help with full rights to several key canada. in the u.s. and

the royal bank of scotland will cut hundreds of u.s. jobs as it treats its mortgage trading business. the bank will cut its mortgage trading business by two thirds in the next 12 to 18 months. at tinto will cut jobs today its copper and gold mines in mongolia. the company confirmed job reductions but declined to give the number of people affected. time in london is quarter past seven this morning. the key to understanding market uncertainty is getting your head around how strong or weak the chinese economy is. -- joinsguest toys us us from zürich. before we hone in on the latest from the chinese economy, let's talk about your strategy overall. in a slownk we are time for equity markets? where do you see us at the

moment? arehat's exactly what we expecting going forward. bond yields are rich across most sectors. i think the value is essentially in equities. for equities to go higher we will have to see confirmation of reasonable earnings. a decent first quarter. if we continue to see that equity can start to continue to go higher. >> on the subject of china. we are reporting banks in china are ready to report their highest levels of bad debt since 2009. goes to the heart of your uncertainty about how strong or weak the economy is. a cause for concern when investing in the chinese market? bad data isng probably a good thing.

they are waking up to a big problem in the chinese economy. the fact is the government wants the growth model to change, once the growth to slow to a more reasonable pace that can be sustainable. athink that has to be concern. no one really knows how strong the economy is growing. that we have to be concerned because china has become a huge player in the global economy. this has ramifications for everyone exposed to the chinese growth cycle. touber for developed markets emerging markets, apart from india. reforms are going to lead to investment opportunities? i definitely think so. we have been bullish for some time in the run-up to the elections.

he got a really comprehensive mandate. we think he is committed to implement some reforms. some are fairly low hanging fruit. bid on he has staked his rio accelerating endless growth rate, which has fallen over the past few years. upside onere is more indian assets in general. in equities but potentially for bonds. >> do you think the recent of aff could be something buying opportunity? tell us how that fits in with the inventory cycle and how much ?pside there is how much more there is to play for? >> i think there was too much hype last year.

in some areas the valuations are still high. especially the pedestrian areas of tech, which is some of the service but some of the areas. i think the valuation is not as rich as it used to be. there is clearly a cycle kicking in in terms of reinvestment. we have seen that in u.s. durable goods. march numbers were very strong. we think that is going to continue as the economies become more tech heavy. there are various sectors and subsectors of technology where there is clearly growth ahead of us. >> i know you like some of the health-care stocks as well. is that because of underlying growth or to do with acquisitions activity we have

seen? >> emerging acquisitions is clearly a reason for that. we will continue to see that as companies look at their pipeline and see if they can generate projects -- products internally. to completerying and also focus their product offering. i think this continues to be a space where we will see transactions coming forward. >> i know you like the dollar .gainst the euro how week do you think it will get if we see them deliver on market expectations? >> there is some downside. let's face it. the downside will be limited. belowt think we will go

130. what keeps the euro fairly well supported, and there is nothing draghi can do about it is the huge account surplus europe is generating, which brings in force the euro and will keep it above 130. >> great to hear from you. we are going to take a short break. coming up, a $1.4 billion acquisition. we will have a breakdown of this move coming up next. ♪

>> welcome back. nestlé is pushing further into skincare. are splashing cash in a slightly different direction. >> $1.4 billion is how much they assetsowing at the coming from valium. is several dermatology

products. it is all about the u.s. it's all about canada. skin.lize your you can smooth away wrinkles. you can enhance your lips and cheeks. as is their second for rate and to skin and health in terms of acquisition. they just spent $3.6 billion to gain full control of the dermatology business they had with l'oreal. >> they had a 50-50 joint are taking ithey in house. this push for skincare? we knew about this strategy in february. of babys the maker nutrients going into something

that can help improve your lips and teeth? ensued --ent growth growth has been -- growth in food has been growing. the profitability is slightly slowing amid competition. with china andre india to get into skincare and health care. grip, wanteden a to make it wholly owned by them. that group which focuses on skincare and dermatology has seen a slowdown. they want to help drive the growth forward. interestingly, they are sacrificing food brands and stocking up in personal health care. that.clearly all about

>> imagine a world without cash. someday.be a reality we will see what your digital wallet looks like after the break.

>> welcome back. let's head out to jonathan ferro for the fx check. >> the euro pushing higher in the last 10 minutes or so. this is sterling. u.k.he pound you get retail sales at 11 a.m. retail time. at 8:55 you get german unemployment. exploit sevent percent. andn't need you to compare

contrast across the euro zone. mario draghi in portugal. the message is clear. inflation is too low. what are they going to do about it? he said there is no debate to return inflation. what are they going to do? they short the euro against the pound. >> inc. you these are the top headlines. ukraine's new president said he wants to talk with vladimir putin to stabilize the situation in ukraine. says who didn't could bring an end to the conflict. dozens of russian separatists were killed yesterday in eastern ukraine. european leaders have failed to endorse john claude yunker -- juncker. in thethe most seats election for the european parliament.

his call for a more centralized european union have drawn detractors at a time when protesters are getting strong gains. and a standoff in rio at the stadium that will host matches during the world cup. many are angry over the price whichr the world cup, kicks off in two weeks time in são paulo. largest bank note producer is switching from paper to plastic. let's see what the future of money might look like. we are joined by the technical director who specializes in mobile software for consumers. dan hartfield joins us. take you for coming in. tell us about your product. you provide software to retailers to allow people to pay for things. >> yes. street with top high

retailers to provide mobile apps. to provide the ability to get more product information but to help consumers make purchases . >> where is it being made? is it providing ipads another tablet so you can pay, or is it actually having the ability of using your own mobile phone to swipe of product, have the cost of it added to your account, and then walk out of the store with it? where are we in that transition? -- itthe little of both. is a little of both. i am allowing you to take the payment while they are talking queue or the ability to for the final payment. there are logistical problems with clothing retailers getting rid of the tags on clothes.

to walk out of a shop having yourself.for places like apple are starting to do that sort of thing. think it's more about making it convenient for the customer to go through that payment chain without having to use real-life or pin devices. >> it's more difficult to use cash if you are just a pop-up location around the store. where does that leave us in the transition away from cash into electronic payments? >> we're definitely seeing a trend going towards a more cashless system. many people are more comfortable with using cards all the time. we have brought in new technologies which are allowing people to not have to pay for

small transactions via cash and to actually move onto card. into as of getting cashless society, it needs complete adoption before that happens. retailers need to be aware that most consumers are not looking to pay with cash. >> what does it mean when you say retailers retract their payment from various places? what does that mean? >> peer to peer is a way to allow them to pay using mobile phones. it is more relevant to smaller retailers who don't necessarily have the infrastructure. allows them to use a toile phone number or even be in proximity and excepting the cost of that transaction. that payment system is much more convenient to the consumer.

>> how do people feel about the security questions? we have ebay telling people to change their passwords. there was a hacker attack on one of the music streaming websites. there are headlines being made about security of your data online. does this make people more nervous? >> i think it does. there is a slowly moving trend .o people being more secure retailers need to think about how their customer proceeds through that process and how technology has evolved. what we have seen is beforehand people were comfortable with bringing credit card details online.

to doinge very used that and feeling secure. day it will be the last will use cash? >> i wouldn't say any time soon. i would say in the next five years you will see cash used much less. won't happen for another decade. >> thank you very much. seven: 37 here in london. coming up, participants returned from the first ecb for him. we will have more when we return.

>> it's time for company news. glaxosmithkline faces a criminal probe after allegations in china they bribed medical professionals to boost sales. allegations have surfaced of wrongdoing in a rack -- in iraq, poland. a new skype product that translates web conversations as part of his emotion into mobile and internet aced offerings. the program will be available as

first. ande offering in india a record loss. they named the fourth chief executive officer and less than a year. india's biggest traded carrier will implement tough measures to establish a major cost-cutting program. welcome back. i am anna edwards. let's talk about what has been happening in the banking sector. for a bloomberg exclusive. the head of the bank saying it is now stable. why are they confident the euro is on track? >> that's a great question. did he have any data points we don't have? i sat down with him a couple weeks ago.

doubling down on fixed income trading. europe. bullish on they think europe is going to turn around. it's a high risk high reward strategy. acknowledge it's a little on the slow side. >> let's acknowledge what europe has accomplished. the program is highly successful. a are now going through mechanism process which i think would be very good as well. you are right in saying gdp growth is still slow to come, and i think that will be the challenge. >> ultimately they see growth picking up in europe. he has to be bullish. they are about $11 billion they announced on monday of last week. on the question of fixed

income trading there are also challenges, but he acknowledged this is something they are going to have to ride out in terms of the cyclical downturn, and they are prepared to do just that. >> we saw a lot of the issues. we positioned the bank well for it. this is part of the cycle of the business. we have done very well in certain areas. others we would like to target. >> he is nothing if not a brilliant salesman putting a brave face on this. they are well positioned in terms of one of the last investment banks left standing. hands out. if it he is clearly doing a sales job. he has a lot of investors to talk to as well.

>> let's take a look at our top corporate stories. caroline hyde is here. let's start with the top of trade. >> we are looking at mezzo. they have been approached by weir group to do a merger. they rejected that idea. all about getting synergy but theyning industry, failed to engage. that deal is off. down 50%. go interesting they failed to engage with management. i am on the metso website.

i cannot see much reference. you also have been covering glaxo. >> you mentioned it earlier. there is a criminal investigation going on in the united kingdom. they are looking at commercial practices of glaxosmithkline. basically, did they bribed doctors, medical units, hospitals to use products in foreign countries. there is a big investigation going on in china. earlier last month the chinese police handed back the results of the investigation into sales for actresses. >> we don't know whether they are looking -- into practices. >> we don't know if it is a broad investigation. we just know they are investigating. >> the statement he reiterated doesn't seem to say whether it is china or other foreign countries. analyzing these

allegations. of these countries have reason to believe there could be some wrongdoing from glaxosmithkline. concern that the united states and the u.k. do have the strength to prosecute if there has been corruption or mis-selling a broad. it doesn't have to happen in the u.k. it can be further afield. this has been well flagged. previously they have said, we are cooperating in the u.k., also with investigations in the u.s. we have known this can be a possibility. shares could fall half a percentage point. i will reiterate they say they are committed to cooperating. they reiterated that this morning.

much.nk you very let's look at some of the macro themes. what are we looking at this morning? clear.as been pretty the ecb is concerned about low inflation. are they going to cut rates? ready much everybody thinks they will. i think a couple of fantastic things have come out of this. employment in the eurozone comes from small and medium-sized enterprises. 25% are financial constraints. is 6.7%.employment compare that to spain and portugal, italy, greece. next week the big focus and the big debate is the kind of credit easing you get from the ecb.

>> whatever statement we get, many in the market are expecting some kind of rate cut. what will the refinancing be? will we get the ecb buying asset act security? be changes to do with how risky the balance sheets are allowed to get? >> that's it. the more simple option would be to do a straightforward like a funding for lending scheme we have in the u.k. that something they can do a lot more easily. that could be something we she said, iweek. said, what is the risk of under deliberating? just a rate cut would not be enough. it looks like they need more and

expectations are incredibly high. there is still money supply data out of the eurozone. we have u.k. retail sales at 11 a.m. u.k. time. that is one to watch. should investors be spending money on moneymakers? we will have more on why the commercial bank may be going cheap according to our next guest.

>> welcome back. in london it is 7:51. let's take a look at some of the stocks. let's start with the moneymaker. profitid their pretax came in a little below analyst estimates. the net income was below estimates as well. of anye not warning changes. they are keeping their outlook at theed. >> if we look last 18 months we had to profit warnings. key we don't get profit warnings.

think another profit warning would have significantly damage the price. businesstch retail volumes staying under pressure. what are the takeaways? >> it wasn't just her office that missed estimates. it was margins, which is a common theme as retailers try to compete with one another. about cost-cutting efforts to reduce cost by 300 million. need to see significant improvement. you look at share price, and it's up 75%. there is something people really grasp onto. >> we have had ge over in france putting his case to lawmakers. do you see this has a smooth

ride? do you think it could be tricky? >> i think that is good for france. a clear relation. there is a sale. i think it is going to go the way. going to be it is the same essentially. cene. are we in the m&a see a bid forzer making astrazeneca. they had to walk away from it. at the start of this year. -- many people were excited about the level of mergers and acquisitions. do you think that is a theme that is going to continue? stock pricesause

are pretty high. they are looking to potentially invest in new areas. looking to expand and look for additional ways to utilize their capital. >> overall market some are .haracterizing this is that how you see things moving? recordtime you see these highs in the s&p we start to see a pullback. we're not seeing a real threat of a downturn in the markets, but at the same time we are not reading the kind of gains. >> thank you for joining us. "on the move" is next. they are going to be watching nestlé. that company is getting a facelift. on metso.e

news of theme saying they were not going to .ake another bid that will do it for today. have a very good day.

>> welcome to "on the move dirt go i am manus cranny. all investors and political attention will be focused on this man. immelt.e ceo, jeffrey make or break deals for alstrom. i am going to be watching glaxosmithkline. the investigation hits home as u.k. regulators open a formal investigation. the maker of kit kat baby formula wants to smooth wrinkles

and plump your lips. $1.4 billioné's facelift. ge and siemens come head to head in front of a french lawmaker to defend their plan with altrom. more on that. . >> asia trading at six-month highs. there is money going to the american and disease. we will be talking through the markets in terms of what is happening out there. we will talk about german unemployment. some confidence, but let's talk to jon ferro. >> asia higher overnight. the future is let to the morning. look at those levels.