>> let the games begin. brazil kicks off the cup. by delays and demonstrations. >> and possibly facing years in jail. >> and google help start up a new home in a german capital. >> hello. welcome to "countdown." i am mark barton. >> i am anna edwards.

it is 6:00 this thursday morning. bloomberg reporters are standing by with stories to deliver your day. and lacing up for the world cup. and the story on google and startups in berlin. >> caroline hyde is looking crackdown on -- and following rate decisions across asia today. >> we get to the inevitable top story -- the world cup begins today. croatia in the opening match -- plays croatia in the opening match. they are viewing the country as an opportunity. he is lacing up his boots. [laughter] >> the curious thing for brazil is not how the world cup has been attracting eyeballs to the assets of the country, but the opposite. it has been a magnet for

negativity. you have pimco saying it is a good idea that is priced in. they take the contrarian approach. they are not the only ones. nationalpe corporations -- there are multinational corporations. they see the longer career term trends is the more positive than what is being presented in adams. >> give us the argument for brazil. >> is a young population. the median age is just under 31 years. you have got a lot of people that can work an exploit that. second, it is a democratic nation. years ago it had a military government. there are a lot of complaints in result. it is a mistake population not happy. but that is good.

apathy would be bad. their pessimistic means things will change. third, they are increasingly educated. part of the reason is because of the government's investment in the good years. --ere's something called a [ they would give poor families siphon city centers -- sent their -- stipends if they sent their kids to school. according to brazilian standards, 108 million are in the middle class. 29 million are wealthy by brazilian standards. they are building a plant. that is what apple is after. buying iphones like there is no tomorrow. >> there are signs.

give me the caveat. >> it is not an easy place to do business. there was a survey. comes in atbrazil -- the trend is not an encouraging one. o, if you're going to go in, be prepared for a hassle. >> ryan, thank you. >> google's eric schmidt is on a charm offensive in germany. they opened a new start up in berlin called the factory. hans nichols is in berlin. hans, they warned that google might need to be broken up. what is schmidt's response? >> he uses opening of the factory is this neat new building on the other side of the berlin wall. there are hundreds of startups in germany in berlin.

.oogle welcomes competition the more competition you have in europe or front europe or silicon valley, the more google monopoly will be somewhat eroded. it was this -- i'm not sure how they responded -- she has a harsh critic in your. coming out of the -- in europe. coming out of the meeting, there is the minor german politician and noted that implicit criticism of european politics. let's have a listen. >> never have politicians that get it right until now. [laughter] [applause] it is very important. do not understand the german system, but expect you to become the president of europe where you can get the rest of the country's fixed. >> there were a few awkward chuckles in the crowd after that statement. google faces many headwinds.

they have the tax question. they have anti-privacy case. there is the right to be forgotten. all challenges that google will have to navigate. i want to point out to you brussels is important. erlang -- much of the decisions berlin makes will be followed by other capitals. you see this big push to understand and perhaps lobby that european -- german government. >> on the matter of the right to be forgotten, did he say anything on that? >> he was pretty clear and this was the charm offensive eric schmidt -- he was clear they would try to cooperate. >> we are generally disappointed by this ruling. there are cop located trade-offs involved. -- compensated trade-offs involved. they are trying to address

issues that people have in the best way they can. we decided we will work hard to comply with the spirit of what they are doing. >> maybe it was a long berlin night, but the beautiful scene was out in berlin. the city has an entirely different feel in the summer. chicech scene, very dresses. mark, you would have even blended in. [laughter] >> that says a lot. >> jail time could be on the table. the u.k. counselor is set to announce plans -- let's bring in caroline hyde. set to widen this legislation. >> you are right. now it is going to be foreign exchange. if you are a traitor of

commodity markets and gold and the like, you could face jail time. that is what we understand george osborne set out for bankers today. that for 12 months they will have a fair and effective market review. they will identify which specific benchmarks. not all will be analyzed. which ones will be subject to criminal sanctions? submitted.t will be if you are looking at london, the rate which helps price more than $300 trillion worth of contracts and student loans and mortgages, it is that rate that is set for banks every day on how much it would cost to lend or borrow from each other. if you're found guilty manipulating rates, you could get the maximum jail sentence of seven years and get unlimited fines. there are nine firms that have been fined more than $6 billion.

this could be expanded. the financial conduct authority overseas markets and prosecute financial crime. financial currency manipulation could be worse than libel. wants to take the helm here. he wants to show the government is cracking down on this abuse. it is interesting. pay used a populist word in the speech. -- heerstand he will say is bringing it back to the voter, you and me. the commodity prices for the goods you buy when we are grocery shopping, he is trying to relate this to manipulation back to the consumers. >> and trying to make a responsibility clear. how so? >> interesting.

these are rules that they will impose and be effective for non-british banks operating in the u.k. a u.s. bank such as tp morgan working -- jpmorgan working in london would be affected by this. libel -- responsible for the police action. they want some sort of chain of command. not just the traitor that sat there -- trader that sat there. 12 month review starts. there is a consultation period. they? after that they rule out where the rules will lie. look, we're not going to take on the european union abuse rules that they're setting. we have something as strong if not schlanger. -- stronger.

we want to make sure we have control of the rules that govern it. caroline, thank you. see you later. >> coming up, world cup fever hits. join us after a short break. ♪

for today's company news. general electric plans another round of lobbying with french officials to support its $17 billion offer for energy assets. this comes after a bid for a unit with mitsubishi. they are in france for discussions. retailer is set to have a valuation in its london ipo. the company plans to price shares at a certain amount of pence. it is the latest u.k. retailer to list and 2014. it marks the busy here in the industry since 2006. executivechief forcer will take over

infosy. welcome back. i am anna edwards. >> i am mark barton. it is 6:15 a.m. in london. there are two big announcements today. -- we have a reporter in hong kong with details. good morning. >> good morning. yes, new zealand has been on top of this. seven hours ago, they raised the rate. that is the third rise in as many meetings this year. it shows you they have a different system altogether.

it is important to contain inflation. koreafour hours ago, leaving the rate at a certain percent. tomorrow, the bank of japan will set to leave it at -- overall, a busy day for rate decisions. what else can we expect from indonesia later? >> 7.5%. no change to rates. maybe some stimulus. they're looking at the forecasting. for now, every single one of them says it will stay as it is. >> john, who will win the world cup? england and the

team draw here get i have got england. i really do. -- i'm going with anyone but england. >> oh, you are going to get hate mail. >> do you like that? [laughter] >> everyone is going for brazil. i'm being a little bit of a contrarian. >> he needs help. >> credit to john dawson for not saying brazil. >> germany will win. >> we will remember if that happens. world cup fever hits brazil. there are infrastructure delays. we are joined by our guest.

thank you very much for coming in. less talking -- let's talk about what is happening. >> it is all to do with the markets. the markets seem to be taking the view that doma will lose the election. interventionist. they think they'll get a mold the type of situation. that is the senator of the social democracy that seems to be up principle opponent. is there someone in waiting? >> probably many. he would go in the same direction. the country would have to -- they so much work to do to restructure. pimco is pointing out politic

including the story of the population. how much do you hold? >> i think your guess was quoting the consumer and certainly over a 20-30 year view. you would have to be in brazil. for an investor for a 2-3 or five year horizon, politics matter. also, the exchange rate is very high. brazil has got a cost production that is too high. the economy is struggling. it looks like that will remain the case. >> and this is at the hand of [indiscernible] >> no, i do not think she was a bit them. her predecessor was a

beneficiary of a commodity boom. as that faded, the work that brazil needed to do was but infrastructure and labor laws and change it to come competitive globally, that did not happen. they lost a decade. >> we have spoken to many banks over the last week. in a playful way, we have discussed the world cup and who will win. maybe take advantage of that potential such as brazil winning. would you buy brazil stock ahead of their potential winning the world cup? maybe if you percentage in the first few months? >> i will take the opposite view. if you are the brazilian investor, you will hope that brazil loses the world cup. >> why? >> doma will become less popular. there could be rights. there is the possibility of a

regime change that is higher. before the to do election in october to bolster her position? can she implement moves that would consolidate and improve her chances and win? is she still the favorite? >> she is still the favorite. her polls might be bottoming. what might happen is -- he is not going on to be. tv time much more in than competitors. as long as there is no disaster in the world cup come it should allow her a nice cruise into the election. >> thank you. stay with us. we will continue our conversation when we come back. ♪

>> welcome back, everyone. i am mark r in. -- barton. >> i am an edwards. -- anna edwards. let's talk about the markets. are you and india? with ane holding firm ovary in india. >> you got in before? >> we did. this looks like a good idea. the market has been strong. lot -- hee has got a

has got a lot going for him. he has taken a lot of personal control over the government. it is a good thing. there is so much corruption in the government. we think the market will take a breather. it will digest some of its gains and adjust to the fact that the next six months are not going to be much in terms of economic growth. a good central-bank governor, the long-term looks brighter. >> how can we expose ourselves to indian stock's? what would you suggest? what types of companies should we be buying? you would be a little contrarian. you would buy the private banks and buying the software companies. they haven't rallied as much. >> because they're less about the domestic story? -- theand the market

economy is structured in son -- such a way it would be week. >> the chinese currency has fallen in recent days. tinkering with their reference. we had all sorts of data in the last week. it leads many to believe the economy is stabilizing. what is your assessment? >> they're walking a tightrope. it is certainly over bill. -- overbuilt. consumer and discretionary is slowing. the government has been stimulating a little bit. stimulus is not what you want. >> thank you. gary greenberg. has been a statement that opening of the market is delayed until further notice. this is an e-mail statement. neighbors -- members cannot send

orders for regulatedthat market. -- for that regulate a market. >> just ahead, we get a unique respect it. spective. ♪

>> welcome back. i am anna edwards. >> i am mark barton. time in london a 6:30 a.m. let's look at the markets. we thought we would look at the new zealand dollar. it is expanding its biggest gain in three months. they are raising interest rates early for the third time this year. signaled that more tightening is to come. surging immigration and fueling growth. look at that. up to 1.2% against the u.s. dollar today. the central-bank

governor says is it is important that inflation expectations remain contend that at -- remain contained. wheeler, the central-bank governor, says to raise official interest rates this year, fueling the currency gains and he is increasing borrowing costs in an election year with prime term in seeking a third a poll that is set for september the 20th. big day for the new zealand dollar after that rate increased by the central-bank. >> these are the bloomberg top headlines. job -- george osborne is getting tough on people who manipulate the market. todayaks in london

alongside mark carney. the imf has issued a warning about the global housing market. is is policy makers must take more steps to prevent another property crash. there sure in that house prices are well above the historical average in many places. the bank of france governor says that the u.s. investigation into bnp could backfire. it is said that it may encourage companies to stop using dollars in its national transaction did these remarks of the strongest yet from french authorities protesting against possible fines that bnp faces. >> google is being swamped with requests from europeans for the right to be forgotten on the internet new law. we are joined by the executive director of open rights group. the group lobbied for a more transparent digital society as

well as one that upholds users rights. thank you for joining us. where do you stand on the debate between the right to be forgotten and the right to access an uncensored web? where are you? >> right in the middle. [laughter] freeally campaign for speech and for people's privacy. where we stand on this particular circumstance is it is not as broad as some people are thinking. in the 12,000 or more people who google will be sorely disappointed, or at least i hope they will. it is a very narrow set of circumstances. there are still top result on his name after 10 or 15 years. be very careful about what to put on the internet. a deuce a folsom presson -- it

gives a false impression of who we is -- he is. automated. it is all over the that make these choices. it will get it wrong sometimes. >> you're saying it is irrelevant and might be inaccurate in its current state. who is to say how long something remains and gives glimpses into your character? we expect google to make these judgment calls as to whether this result is still relevant? >> that is a problem. if google makes that judgment call, when it is challenged and people challenge it with legal materialnd they remove that actually is relevant, we have a problem. i think we have to hope that if google sees difficult cases and

pushes it back to the information commissioner's and authorities and asked them to make that judgment, of course, lots of companies would not do that. that is one of the problems. i do worry. i do not think that that european justice has been able to think through the process that will evolve. they are not legislators. they are a court. they cannot invent new frameworks and say this -- by pushing it back to private companies, there are some risks. private companies do not want to make dutchman -- judgments. you could get strange results. >> how is this affecting the user habits of everybody today? particularly the young? >> that is really interesting. the young in our society wants to publish

everything. we will live in a world in 10 or 20 years were no one cares what is available. i'm hoping that is true. i'm hoping what we see like snapchat and the declining use of facebook as young people learn that publishing things can get you into trouble. pchat allows you to publish temporarily and it disappears? >> precisely. --y choose the things where this is something about young people wanting some element of privacy and control over the way that they are presented. >> the photos that might appear on the internet, can you extinguish them from google? >> no, absolutely not. who was not being asked to censor things. -- google is not being asked to censor things. i expect -- i do not think

google is going to react. asus the hope that they do not react. --re is a i-formation law defamation law. >> it is interesting that they put a flag. bringing one of these cases, your think seriously about doing it. it gives no indication -- seems to work, i guess. >> absolutely. again, we have to be cognizant of what might happen there. google might annoy everyone. [laughter] they are in a difficult situation. >> i don't think you have to worry. >> that is what i'm worried about. ramifications for the likes of the facebooks of the world?

maybe they're posting less question mark >> -- less? >> nearly everyone is on facebook. family, friends. before it was essentially college kids sharing. there is a social element to this, too. .acebook pushed the boundary the push them out of sharing that people did. people shared more and use the service more. that is more money that they can make. if you annoy users and people stopped trusting the platform, you have got a problem. >> thank you very much. >> 6:38 a.m. in london. years for football fans. the world cup kicks off in brazil. likelylike golf, you're to be tuned in for the u.s. open . the second major event of the year.

u.s. tv viewership is expected to be down again. tiger woods is missing because of injury. i had the chance to sit down with the golfing legend gary player in an interview. he won a title most 50 years ago. he said words will be greatly -- woods will be greatly missed. >> greatly so. we need a world champion. he has been far better than anyone in the last 10-15 years. no one is close to him. he has had knee and back trouble. he has also got problems with his swing. he will be back. he is tenacious. >> will he win another major? [laughter] sincehasn't won a major 2009. the question that will continue to be asked is -- can he reach the 18 victories of jack

nicholas? what do you think? >> only god knows that. anyone is a noble of doing it, it is tiger woods. he needs to make changes in his swing. he needs to make quite a lot of changes to do it. certainly would not surprise me. it would not press me if he didn't. >> you mentioned the money. one of the reasons you needed to take part. what is it like looking at the winningat is up for these tournaments? not just the majors. justin rose took home $1.4 million. in your day, $1.4 million or even $1 million -- [laughter] are you envious? >> no. >> how do you get your head around the prizes awarded to the winners? >> it is simple. i wanted to be the world champion. money was not the criteria.

i enjoyed the times that we played. we would play at people's homes. there's is no substitute for personal contact. now it is big is this year they all have their own jets. >> you would not like to be a part of that? >> i'm not envious at all. it is wonderful that the game has progressed like this. respectives own charities. they are not just takers, but givers as well. should there be a cap on it? i don't know. as long as they fulfilled their responsibilities and he is back at toured a bowl offense, -- give back to the public. cillroy.ention rory ream he switched clubs.

a multimillion pound contract year have the pressure -- contract. had the pressure version -- rise n? >> what wonderful pressure to have. [laughter] 2-4 minutes with all of the technology, they can give you replica of what you're using. i would love to have that kind of problem. problems are celfin pairing. -- self-impairing. in 60lion kilometers years of travel. i'm in my infancy. >> you are. people have seen -- do you want to see poverty? go to india. >> gary player speaking to me in an exclusive interview.

an amazing man. he is 80. with 100400 crunches pounds of weight onhis be -- on his belly. do you have any pains and aches? not a chance. [chuckles] he keeps fit and keeps a healthy mind. he won nine majors. the success lattice -- lasted. if i survive until i am 80, well-done. if i am as fit and healthy as he is, i'm a happy man. brilliant. >> right. brazil prepares for the opening match at the world cup. we look at last-minute reparations and the challenges. ♪

>> welcome back to "countdown." i am mark barton. >> i am anna edwards. ♪ and whistles] >> the world cup kicks off in

brazil today. let's take a look at the latest world cup news. strike overset to better pay. airlines say the strike will not affect world cup travelers. workers will remain on the job as lady percent of baggage =-- 8 -- 80% of baggers. brazil hosted the world cup last time in 1950. there was a winning goal in the final game of the 1950 world cup. he is the last surviving member of that team and is eager to attend. he has been overlooked in being given a ticket. >> they still haven't forgiven uruguay.

>> and bringing their own sofas to the stadium. many are already positioned so that fans can watch all of the games of the world cup tournament as if in the comfort of their own home. 12,000 fans are expected to watch the world cup opening games between brazil and croatia on the big screen in the stadium. i hope it doesn't rain. >> yes. it would be great unless it rains. ?s the host country ready we talk about the challenges faced ahead of the game. ♪ >> back in 2007 when brazil was awarded the 2014 world cup, the country was enjoying a period of economic growth. adding ready for the final has not been easy. -- getting ready for the final has not been easy. the task of remodeling 12 3ations -- stadiums, only

of the 12 have been completed on time. work is still being done until the bitter end. the total cost is spiraling up. the public protested and demanded hospitals and schools over football stadiums. arenas have cost 33% more than the previous world cup in south africa. whether the stadiums are ready or not, major concerns for the safety of the fans. 2013, brazil was the nation with the most debt caused by football violence. every year, the are 20 times more murders in brazil than there are in the u.k.. five times more than in the u.s. uav's will monitor crowds while robots will be deployed by the brazilian police.

dogs e much negativity, -- the investment bank suggested buying british -- brazilian stocks. tom gibson, bloomberg. >> we are talking about things other than the world cup today. we will take a short break. when we come back, we will talk about retail if you wanted to set up a store online, how would you go about doing it? ♪

>> welcome back to "countdown." i am anna edwards. >> i am mark barton. will digital retail save -- this company is being dubbed the tumblr. it aims to help individuals and retailers create their own online shops. founder ofmore, the tictail. tell us how this works and how you make money. e-commerce for people who do not care about e-commerce. businesses,ll people who do not know much about selling online come and create a beautiful online store, and provides online marketing advice for them. >> is that you set yourself up

on how people might sell their wares? there are other places that they could sell. >> absolutely. how do you get the first traffic? we try to be strong in that space. sorts. community of go onto tictail. consumers can subscribe to a store and create a relationship with you. >> what is some of the more unusual store offerings on your system? >> some of them would be --

[laughter] cambria them up on television. -- can't bring them up on television. we have a natural next step. thansa with art. if you bought any of these paintings, tickets to berlin were included to pick them up in the gallery. >> ah, i see. why three? many are struggling on how to monetize on the internet. if you are providing a service and the great tiffany behind the websites, why not charge people a monthly subscription? >> our ambition is to become the worlds most used and loved e-commerce site. to reach that point, it is necessary to remove all thresholds. costs is one of him. -- of them.

they wanted to remove risks from .eople platform,w on our become more advanced, you can add on. >> how did you lure a man who is toous and sold his apps yahoo! and made millions in the process? >> i'm not sure who lured wh o in. [laughter] nick is an amazing person. we ended up sitting next to each other at a dinner a few years ago. we struck up a conversation. from there, we headed ongoing relationship that eventually to us partnering up. wait and see. thank you for joining us. "countdown" continues in the

next hour. stay with us. ♪

>> let the games begin. brazil kicks off the world cup later after a seven-year buildup. hit by delays and demonstrations. >> the u.k. chancellor says traders who fix currency rates face years in jail. >> g.e. plans more lobbying for its $17 billion bid. that's as siemens joins forces mitsubishi. 2.7 d terry lehe plans a billion pound comeback. [captioning made possible by bloomberg television]

>> welcome to "countdown." i'm mark barton. >> just past 7:00 here in london this thursday morning. bloomberg reporters are standing by across the world ready to deliver the stories hat will drive your day. brian is lacing up his boots for the world cup. >> or is it cleats? and g.e. plans another round of lobbying on alstom's energy assets. the georgios born announcement about cracking down on f.x. fixing. >> and first let's get some breaking numbers from the british luxury handbag and other things maker. that is mull bury. -- mulbury. full-year basic e.p.s. 14.5 pence and a gross margin of 63.3 pence and revenues of 163.5 million pound for the full year. that was 164 million is the sales figure being quoted and the estimate for 164 million.

so in line with estimates there on sales. full-year pretax profit 14 million pounds. they're talking about double digit declines in wholesale sales. for 2014 and 2015. and of course any negativity around these numbers was well flagged. this is a company that's had two profit warnings at recently back in april. they had the second of those profit warnings in less than three months. and we of course in march heard that the c.e.o. was leaving. that's bruno giro who tried a new stratty for mulberry and tried to increase prices and take the luxury handbag maker in that direction. he spent two years at the helm of the business. the stock fell two thirds in value during his tenure. so that leaves this business currently with no c.e.o. and no creative director. and these are the numbers that we're getting through from the company. we'll see how that one trades a little bit later on. and we'll see if we get an update on management of the business. >> that warning in march sent its shares down by 25% itself. and this is the stock as you

say that the last two years, has lost a big whack of its value. the world cup begins today as if you didn't know. host nation brazil plays croatia in the opening match. organizers have faced controversy over preparations for the tournament. but investors are increasingly viewing the country as an opportunity. ron chilcot is here with the story. >> this is the contrarian investment case for brazil. the idea that the world cup has attracted an awful lot of negativity. if you look at the press coverage, it's been very, very bad. and the brazilians themselves have been very pessimistic and very disgruntled about how things have gone which is a perfect reason to invest. says pimco and not just pimco. you got apple moving in. you got b.m.w. setting up $200 million plant. pimco saying that basically all of the negativity is priced in. the stock market is down by a third from its peak and sometimes you have to take the road less traveled. >> give us the arguments for

investing in brazil. what are the detail of positives? >> i went through their note that they came out with back in april to sort of mine it for the four big points. one is they say brazil has a young population. average age just under 31 years old. it's an increasingly democratic population which they argue is good for markets. the sense that they're very pessimistic. that means that they're going to actually enact change. or carry out change. where if they were apathetic then we would really have something to worry about. they're increasingly educated and part of that is the previous government invested in a program called bolsa familia when g.d.p. was 7% or 8% and took that extra money and gave poor families stipends to send their kids to school reducing the poverty rate by 50%. and they're increasingly wealthy. maybe not wealthy by western european standards but wealthier than they were. if you look at their top income bracket, it's doubled to $29 million. and if you look at the -- what they define to be a middle

class, that's going to 109 million. which is what almost threefold the population of this entire country. so that's why you got b.m.w. and apple saying we can really make some money here. and b.m.w. with the luxury cars and apple with its iphones that cost in brazil nearly double what they cost here. >> two views to make a market. what's the other side? >> it does. the warning on the can is that it is not an easy place to do business. the world bank does its ease of doing business survey. and brazil comes in in 116th place out of 189 countries. not nearly as good at football as they are in making good business conditions. and in the last seven years, their ranking has improved just threefold. just three places i should say. so not great performance. a very byzantine and very bureaucratic people. but with some opportunity. >> ryan, thank you very much. >> g.e. plans another round of lobbying in paris on its $17 billion offer for alstom's energy assets. but siemens is waiting in the wings.

and it may have a new partner in mitsubishi heavy industries to bolster its bid. let's get to our international correspondent hans nichols in berlin. when is the deadline for siemens to decide its next step? >> it's june 16. that's what the company said. that's monday. that gives us some drama. a deadline. i know you're excited about this story as i am. here's the latest we have. mitsubishi would make the bid for the gas turbine. and also the energy grid. the power grid. g.e. then would get the steam turbines. that's important for a few reasons and namely regulatory but all this subpoena s happening in the background in the context of siemens maybe losing out on the lobbying game. because they don't have their bid formalized yet. as it is, g.e. is out there lobbying. you got the head of the water and the head of their deals, steve golme, and john flannery. they are meeting with french officials this week and next. this is a lobbying game. their argument boils down basically to three arguments.

jobs. jobs. jobs. the g.e. proposal has a guarantee of 1,000 new jobs inside france. for alstom. and it will be really interesting to see if and when siemens comes one a formal bid. will they have a jobs figure attached to that? mr. ovand is meeting with his ministers to discuss this matter and the french government ultimately gives the green light on this. mark? >> and hans, more of an idea about this siemens and mitsubishi bid. >> ok. so the important thing is that siemens would not be getting the energy grid. right now, they have about 50% of the high voltage transmission lines in the entire european union. and if they got this component, the grid component from alstom, they could face regulatory pressure. but here's the interesting thing. they're going in with a japanese company. and we remember the line all along, especially from mr.

monteburg, french industry minister that you wanted to have two european champions, two powerhouses. awfully difficult to make the pan-european argument when your partner, who's going to strengthen the bid with cash and what not. but when your partner is actually a japanese company. mark? >> thanks, hans. see you later. hans nichols in berlin. >> georgios born has a message for currency riggers. jail time is on the table. today, the u.k. chancellor is set to announce plans to extend the laws that criminalize libor rigging for used in currency and other markets. let's bring in our european business correspondent caroline hyde and set to make a speech. >> mansion house, annual speech to the banking industry and when its traders beware whether you trade foreign currency or fixed income or trade commodities. if you manipulate the market, you can serve jail time. it's already being imposed on libor manipulation. london and the bask offered rate, the rate that helps set basically the price for more than $300 trillion of rates,

contracts, student loans, mortgages. you can get a maximum of a seven-year jail sentence and unlimited fines. that was imposed last year because of the series of scandals. the scandals keep on coming. we've had them with the foreign currency market. and martin wheatley, head of the f.c.a. financial conduct association says look, this could be as bad as libor. the foreign currency manipulation. you've got worries about the manipulation of the gold price here in london. really george osborne head of the general election coming next year, wants to crack down and show that the government is tackling this. and therefore, we've got a 12-month -- what's called fair and effective markets review by the bank of england, by the s.c.a. and by the treasury. all working together, interestingly, the recently appointed governor will be spearheading this consultation, this 12-month review.

and identify which benchmarks you might serve time for and indeed they'll submit it going forward in the autumn. >> the man on the street talking about libor and currency rigging and rigging of other asset classes, it's not easy to get a grasp on it. hence his language. >> yeah. >> is changing, isn't it? >> it's getting very populist and strike to the heart of the people and very much a general election plug, i think. for george osborne because we understand in his speech he's going to say markets here set the trait -- interest rate for people's mortgages and make it linked back to home saying the exchange rates for our exports and our holidays. and the commodity prices for the goods that we buy, when we're out shopping and the like. and he is trying to show that this is quite populist. another really interesting tactic that georgios born tonight that may also serve for the general election is they're going against europe. they're going against the e.u. of course a small matter of potentially we might have a referendum on our very membership of the e.u. and u.k.

and what the government has been promising. the u.k. will not adopt e.u. market abuse rules. and going it alone. and we're making up our own regulation and what george osborne wants to put across. dozens of regulators around the world. three different continents investigating these allegations but we don't want to work with madrid, the international organization of securities commissions who are trying to harmonize the markets and we want to go it allen because the financial industry is still so important to the u.k. economy. we don't want to have any concerns that we might cut off any growth. >> karen, thank you. >> harsh words for the e.c.b. one economist says the central bank is wasting our time. find out why.

>> time for today's company news. sony's television revenue jumped the most in the first quarter since at least 2012. that's as demand surged before the world cup tournament in brazil. sales rose 20% to $2.15 billion. japanese unit novartis says prosecutors raided its office in tokyo today. the company says it will cooperate fully with the investigation. its offices were reportedly

searched searched over a possible breach of a law regulating exaggerated advertisements and the indian venture of air asia starts operations today. asia's biggest budget carrier has set a target for its india venture to break even in four months. the market is so competitive that airlines are offering base fares lower than two u.s. cents as they woo 61 million domestic flyers. welcome back to "countdown." i'm mark barton. >> i'm anna edwards. 7:15. ever get the feeling you're being watched? if you're attending any world cup games, there's a fair chance you wouldn't be imagining it. security and safety precautions will be at their highest levels. and israeli technology will be playing a major role. we have more. elliott, it won't be on the pitch this particular thing you're going to be talking about. this is -- israeli presence at the world cup. but explain it to us. >> yeah. israel's only made it to the

world cup finals once in 1970. much to the chagrin of football mad israelis. but the companies will certainly be there. one company to sort out 3-g infrastructure. wireless infrastructure in brazil. you got a company called risco which is dealing with security management of the stadium in quaba where some games are being played and nye systems, one of israel's biggest technology companies also there in brazil. helping the brazilians with surveillance of their real-time analysis of real-time video surveillance. but not just on the ground that israeli companies are present. they're also keeping an eye on things from the air. faster than ronaldo, at a fraction of the cost. meet israel's world cup star. signed from brazil by the air force the hermes 900 is made by elbit. the basic drone costs up to $3 million. it weighs just over a ton.

takes off and lands automatically. and can fly nonstop for 36 hours. and is great in the air. from up here, the hermes 900 together with a smaller hermes 450 will keep an eye on world cup games in brazil. their goal is to help with safety and security. they won't be carrying a payload. and it's safe to say that the hermes 900 has more chance of winning the world cup than england. >> slightly guitar based rock music seemed appropriate. and israeli drones may seem tougher competition in brazil from brazilian ones. >> yeah. brazil is a massive country. and let's not forget. we're talking about a continent-sized country of more than 10,000 miles of borders and not easy to police. brazil wants to use unmanned aerial vehicles not just for security reasons and also for things like monitoring crops. up until now israeli drone

exporters have rarely taken advantage of brazil demand for drones and not just elbit, israel aerospace industry state owned and sold some of its heron drones which played a crucial role in the apprehension of a rio drug kingpin known as the little p. but brazilian companies are trying to catch up. according to one rio based consultant about seven brazilian companies which are capable of developing their own unmanned aerial vehicles. they're benefiting from let's say brazilian assistance in doing so. a bit of aid from the brazilians which they're keen to promote brazilian industry. when we have the world cup in 2018, then perhaps israeli drones will be given a tougher run for their money by brazilian ones. >> elliott, thank you very much. elliott got kin in tel aviv. >> today at least the world cup kicks off in brazil. and if your tastes lean toward golf and likely to be chewed

into the opening round of the u.s. open which is the second major event of the year. u.s. tv viewership is expected to be down again this man gosm's top star tiger woods is missing. because of injury. i had the chance to sit down with the golfing legend gary player for an exclusive interview and he won his u.s. open title almost 50 years ago. he got into healthy diet and exercise for his professional longevity. >> i wouldn't change anything. i was a hard worker. i achieved things that i never thought i would -- well, i was always very optimistic. but when you think of what i achieved, far beyond what i've expected. >> and led you to nine majors. and led you to nine senior majors which not a lot of people know or focus on. but you said to me gary before we started chatting, that winning the grand slam, which you won in both, it's actually harder. winning it in the senior tour. why is that? >> well, people are amazed when i say that.

and i always say my grand slam on the senior was far better than the regular tour. because you got to do it after 50. now, most athletes are finished when they're 30. so now you got to go there and win this against not one person, not like tennis where you and i play against each other and same conditions in the final. we play against 1 00 different conditions. playing in the morning and raining and in the afternoon it's sunshine. so i had to do it after the age of 50. and i'm the only one who's tried. tom watson and jack neck laws and arnold palmer and lee trevino have tried it and haven't done it so it must be tough. and if you think, just go back a few weeks ago. a man of 50 years of age nearly won the masters. fred couples nearly won the masters. rayam raymond floyd nearly won at 50. this young -- not young but he is a young 50, goes along and wins the spanish open on the regular tour, wins his first senior tournament. but the senior tour is one shot around worse than the regular tour. but we come to the conclusion, you can be 20 years old or 80

years young. and i'm almost 80. i do 1,000 -- >> i can't believe you're 80: >> not 80 but just under. >> you look 20 years younger. >> i skr size profusely. 1,300 crunsms four times a week and sometimes with 100 pounds on my chest. >> any aches and pains? >> none. none whatsoever. >> never had problems -- >> because i don't put the poison that exists around us today in my body. >> that's the bit of advice. the diet. >> it is. but easy to get a camel through the eye of needle than to get somebody to worry about health. and exercise and diet. >> he loves his sayings quoted winston churchill a number of times during our chat. especially the lineman maketh man and talking about justin rose who won the u.s. open. the englishman last year. and he said there's no one more polite on the golf circuit. and he is all about manners not just about playing golf and thinks part of golf is the etiquette and the gentlemanly behavior. >> will you be watching the world cup? >> didn't ask him much.

south african of course. and south africa aren't in the world cup. so i should have asked him who would he be supporting? he loves this sport. loves it. >> and i'm sure you model yourself. >> i do. 1,300 crunches a day. >> absolutely. and a return to the city. former tesco chief gary lehe plans a comeback with b.m.m. details ahead.

>> welcome back to "countdown." i'm anna edwards. >> i'm mark barton. 7:24 in london. b&mfment retail is seeking a multibillion pound valuation. the company just priced shares at 270 pence and the latest retailer here in the u.k. to list this marking the busiest year for the industry since 2006. ruth david our i.p.o. reporter is here and what's the reception for b&m retail? >> after a while, we're actually seeing a retailer where there's been a strong reception. if you remember, car factory and had to price its i.p.o. at the bottom of the range. factories had to pull its sale. but b&m from the start of the i.p.o. we've heard that investors like this story. and they managed to price it toward the upper end of the price range. the price range is up to 290 pence and definitely one that we might see trade in the green today. good news for the banks doing the deal. and the company. >> what is the market like then

for retail i.p.o.'s? you mentioned some. >> yes. and the busiest year in london since 2006, which means that investors are pretty much for choice and not looking at every deal. >> spoiled for choice is not necessarily a good thing, is it, in the i.p.o. market? >> it absolutely isn't. in fact, i was at a conference where one of the sales managers said if you price a deal at the level that an investor higher than a level that an investor has told you he's going to be so happy because that means he doesn't have to look at it. it's one he can let drop from the 50 deals he's looking at now. >> and b&m many are not familiar with the concept. ruth. but they will be familiar with the man who's leading it. >> tesco's terry leahy and marks a return for him to the stock market since he stepped down in 2011. they've had a pretty good year, actually, the company. they had sales increase of about 29%. they've added about 42 stores on the year. so definitely is one. and may not have the brand

recognition that tesco does. >> yes. >> thank you very much. our i.p.o. reporter, ruth david. >> more on the world cup next. the former c.e.o. of liverpool joins us now. . .

>> welcome back. i'm mark barton. >> i'm anna edwards. >> oh, it is just me. >> noise is off. >> let's have a look at the currency today. we thought we would look at the new zealand dollar. it is headed to its biggest daily gain in four months. it is after the central bank raised interest rates. the kiwi, the new zealand dollar rallying at 1.2%. all of the 31 major currency

swaps rising too after the resurf bank of new zealand said it was important to contain inflation expectations. so the new zealand dollar is up 1.3% against u.s. dollar. -- kiwis d a advanced advanced. all eyes on graham wheeler. what is he going to do next? looks like there could be further rate increases. the further major developed central bank governor to raise interest rates. who'll be the next one? will it be the bank of england? there is a thought for you. >> these are the top headlines. extending their control over partsor iraq. they are advancing toward baghdad after capturing the huss. ace of

the i.m.f. said it must take more steps to protect against another property crash. house prices are well above their historical average in many places. george osborne is getting tougher on people who abuse markets. he speaks in london today alongside bank of england governor mark carney. billion ore than $11 to host the world cup. the true price might be harder to see. you can call it a city on the hill. the people there hope their voices can be heard. erik schatzker looks at what the world cup has cost them. >> brazil spent $365 million to build this new stadium in san

paolo for the world cup. just a little ways ast away there is this. >> so tell me. what is going on here? >> she claims her rent doubled overnight from about $200 a month to $400. too poor to pay and with nowhere else to go, she came here. how many people were here at the beginning and how many people re here now?

>> they are all squatting on that land. the tents may be nothing more than plastic shooting but each has a number, like an address. by occupying private land and abandoned buildings, the squatters are trying to shame government into building more affordable housing. city officials estimate that ore than 230,000 san paolo families need shelter and yet they plan to build only 55,000 new homes over the next two years. the people here call this at the present time city new palestine. aren't the living conditions difficult? are you not worried that it will it is tooe point that angerous to live here?

>> water has to be brought in and there is no electricity. communal kitchens hand out donated food. entire families eat and sleep in the same room. how is it on the children? >> on the night to have inaugural match in the stadium, a torrential downpour halted play for almost half an hour. a minor inconvenience for fans. a disaster for resident departments of the tent city. -- residents of the tent city.

>> the squatters staged a protest outside the stadium a week before the world cup. exposure they hope will drive the brazilian government to act faster. >> how long are you prepared to tay? >> coming up next, we're going to have a short break and then with christian perth. i wonder who he thinks is going to win the world cup.

je plans another round of lobbying with french officials to support its $17 billion offer . loibs for as siemens a deal with mitsubishi. u.k. discount retailinger b&m is seeking a multibillion pound agreement. t is the latest u.k. retail to

list in 2014. infosys has named a new chief executive officer. he will take over on august 1. he was previously sap's technology head. he seeks to reverse four straight years of narrowing margins. welcome back to "countdown". i'm anna edwards. >> i'm mark barton. 7:40 here in london. let's bring the focus back to the world cup and the english team's preparations. newer next guest is a former football clubhead. welcome back to show. good to see you. how was it in miami? how were the preparations going? how did they go? of course they are in brazil now. >> well, they seemed to be very relaxed. i went to the honduras game on saturday as you know, with

affected. it wasn't the most exciting football match i've ever been to. the general feeling around, i went to the first day and the general feeling is that there is an extremely relaxed atmosphere around the camp and seven contrasting it with the atmosphere around the squad in south africa. gets out of their groove, they will probably play colombia or greece. if they win that game, let's really speculate, they will probably end up playing spain or brazil. is the quarters as good as it gets for england? >> i suspect that. i think people would view that as an respectable outcome. i think the two quarterfinalists, brazil and spain, will likely be in the semifinals. i think probably brazil, spain, argentina, spain and germany

would be my pick. we would be doing well to get into the semifinals. we'll see how we go. >> are the european teams going to cope with the heat? you saw england in miami. they are coping with heat and humidity. >> it was extraordinaryly difficult in miami. it was about 90 degrees fahrenheit. it was very obvious that everybody was struggling. so i think that will be more of a factor. traditionally world cups in latin america have been won by latin american teams. of those last four, the way the seating works we could have an all european finals, spain, germany, but maybe, just maybe, we'll get a classic mix. maybe a spain/brazil final. >> we have been covering the politics and the riots and protests taking place run up to this world cup.

is the football going to win people over o, do you think? >> there is often this backdrop in the build-ups. a similar feeling about south africa. it never really materialized. the nature of these things, you know, the tournament gets going and builds a sense of momentum. i think it is what happens in the aftermath that is more interesting and frankly more concerning. i think lots of us feel there is something not right about phenomenal levels of vement in world cup infrastructure that can be -- not long after these eventses. i've been to south africa a number of times since that world cup. one has that feeling around there. i guess that is a subject for a different day. i think you'll find football will take over for the next couple of weeks. >> the find of the england team, it looks to be players from liverpool. >> yes, it does. >> i'm sure you'll be very happy

about. i have you got overpb the disappointment of not winning the premiere league and how excited are you by the prospects of daniel andra hema? >> i have a dispoim. i opened the take things in round. whilst the last couple of weeks of the season, get to dream that we were going to win that league trk reality is over the full season, it was an incredible year for liverpool and that is reflectsed in the english squad as you rightly say. not just the sheer numbers but the starting 11 and the great talking point and i think it is billing to a cresh end of for saturday. -- creshshoppede for saturday. >> i'm fairly sure he will be used as an impact substitute. i know roy well. he will -- he is not somebody to get carried away with the moment. he will have had his team worked out for a long time now.

a couple of, you know, just a short-term frenzy of support around a single player will not affect roy at all. you'll know what he wants to do. he will have these views and whopet -- >> he won't -- >> armchair pundit. reading out that kind of -- >> you can see the idea being italy, you know are traditionally always an extremely tight team. the game is likely to be close for 60-70 minutes. coming back to mark's point if, the weather is intense, the players tire. the pitch will be much more space in the last 20 minutes and a young, fast player like sterling, could be much more damaging at that point in game. >> we're talking damage to the game. there is a quick question on the allegations that surfaced in the sunday times. >> yes. a former fifa official from

qatar, former vice president made payments to various officials that could have contributed to qatar winning the world cup. what is your view on this? has this damaged football? >> it is not exactly headline news, allegations of corruption around fifa. what is interesting, is in the aftermath of allegations, what appeared yesterday to be a fairly concerted and orchestrated response by a number of senior european officials, greck dike, david gill, notebly the head of the tch f.a. all really saying time-out. i have severe doubts whether that will be effective. he is one of the greats. he was described in the paper this morning as rather reminiscent of a medieval pope in his manipulation of power and so -- but i was pleased to see

f.a. speaking up. that is our role in the game. i don't think we have many friends in fifa because we tepid to be the federation that does speak out. we'll see. i do think there is going to be a great big story after the world cup on whether the qatar process is reopened. but don't expect to see that. >> thank you very much for joining us today. christian purseling, former c.e.o. of liverpool. infosys has named a new c.e.o. we are joined from mumbai for more. >> thanks very much. that is our big story today. as a blue chip company. announcing sweeping challenges to the entire top management team. i want to run you through some f those. a new c.e.o. has been appointed.

one of the co-founders will step down. he will however continue as hairman emiratice. the president will step down starting on the 31st of july the end of next month paying the way or him to take over. now this has been a major shift that has happened. there were a lot people who have been -- a few months ago infosys decided to appoint two companies started becoming -- apparent an outsider would become the head of infosys. with that, we saw an exode us of the entire council.

the question is why these changes? one of the co-founders of the company, who retired in 2011 decided to make a return to the company. most -- cracked the whip are saying on multiple occasions those were drawing fat salaries and not performing. he was keen on reversing the trendor slowing growth and sales. definitely is interesting. >> thank you very much for oining us. >> some big news coming out of b.n.p. paribas. the company's chief operating officer or one of b.n.p. paribas' chief operating officers will step down on june 20. the bank just announced this in the statement. his name is george. you might remember we mentioned

a story on june 6 that the new york banking regulator was pressing b.n.p. paribas to dismiss one of its top executives as part of the settlement negotiations with the u.s. over alleged sanction violations. according to a person, he wanted chodron. o remove >> even though he hasn't been accused of any wrongdoing. he is leaving b.n.p. paribas. >> how the with mull brie. ulberry. more on mulberry when we come back. ♪

>> welcome back to "countdown." i'm mark barton. >> i'm anna edwards. 7:53 this london. just minutes away from the start of european equity trades. let's have a quick word on mulberry. the luxury handbag maker that doesn't have a c.e.o. or a creative director but did release some numbers this morning. >> i'm afraid that is flected in the results. they are still living with the

legacy of the previous c.e.o. ho left sort of april. he was doing a strategy of uppricing the brand. he same that he did at hermes. they still don't have a permanent c.e.o. and still don't have a creative director. that seems to be vacte vacant for a year now. >> a stock that has lost 2/3 of its value in two years, does it provide a buying opportunity or mountain? >> it is possible. if you look at the fundamental underpinning. according to analysts, 44 types. it is not clear that it is a bargain at this point. it is very thinly draded.

daily trading volume is -- i think that is probably technically correct. >> 140,000 hands a day average trading. >> i wonder how many handbags that is. let's talk about volatile fifment why is there so much olatility at the moment? are we too addicted to quantitative easing from various central banks? >> i think central bank act vism is clearly playing a part in damping down volatility. we're seeing it in equity markets. there is a reason why it is lower. many of the previous suppliers of volatility to the market were -- market making unit, a lot of it was wiped out through legislation. at the same time, a lot of people were selling the --

>> michael, thank you very much. >> move smufe next. a special treat today. >> you. >> me, yes. all the latest. >> i'll see you tomorrow. ♪

>> welcome to "on the move." i'm mark barton at bloomberg's european headquarters in london. we're moments away from the start of european trading. futures indicating a flat open. perhaps investors are more focused on football. it is justified. nichols, , hans caroline hyde. >> u.b.s. says brazil will win the cup but their stocks will only really rally if they don't. check around. the chief investment for europe joins me in half an hour to talk us through their logic. caroline, over to you. >> thanks. it is not just libor

manipulation that could get you lobt up now. if you're a trader, commodity trader or a fixed income trader who has manipulated prices so says george osborne. we'll be back with much more. hans, over to you. >> caroline, thanks so much. the plot thickens on the bit for alston's energy assets. mitsubishi and hitachi are joining with siemens to make an offer by monday. we'll break it all down for you in a little bit. >> thanks. european markets just opening. let's check in with caroline hyde at the touch screen for all the details. >> mark, thank you very much. it could be a delayed trade. your next set to sell shares. an euronext which of course manages thest the market, gets the trading going, said that the