>> welcome to "countdown." >> welcome to the program, everybody. are standingorters by across the world, ready to deliver the stories that will drive your data. elliott gotkine is in tel aviv, covering the rising tensions in iraq. ge sealed its biggest acquisition ever. >> manus cranny is watching bnp paribas. a deal with regulators. berlin,hols is in following the race for the european commission president. as england takes on costa rica in the world cup tomorrow, we will take a wider look at the country's economy. we have an exclusive interview. >> gunmen fighting iraq he

forces seized more terror -- iraqi forces seized more territory. president barack obama warning the violence could spill over into neighboring countries. elliott gotkine has more. things seemingly going from bad to worse in iraq. >> it does seem that way. since the insurgents took most of iraq's second biggest city, they have used it as a springboard to capture more territory. over on about four towns the weekend and now control a swathe of iraq. they should be able to keep open supply lines to what is now their frontline to take more territory away for the government to be formed.

>> there is no guarantee any government will be able to bolster to the extent they will be a will to be back the rebels. >> how are they managing to defend the country? >> the iraqis say they have theged to defend it against breakaway rebels.

crude shipments exports from iraq have not really been disrupt did. -- disrupted. the kurdish reason to the north thebeen exporting without government's permission. seemstest shipment of oil to be sold to none other than israel. that's something they don't want to be seeing and certainly not something the united states is

seeking to encourage. ge has sealed its biggest acquisition ever. the shareholder agreed to sell a stake to the french government. let's bring in caroline from paris. morning, anna. it has been a long weekend of negotiations and discussions -- alstom androm general electric. you had them approving ge's revise offer. they saidfter they would back the position if they took a 20% stake. they couldn't agree on the price.

to sell the shares for 34 euros a share, which is six euros higher than the closing price on friday night. finally, we had a compromise with the french government. the french government will have an option for 20 months to buy shares at the best price according to the economy minister. he says he prefers to wait to get the best price not to spend too much money of taxpayers money. is ge's biggest acquisition ever. they would create three joint renewables. assetslues alstom energy at 4 billion euros, which is a bit less than before.

they will reduce that to return cash to shareholders and to boost the train division. the train division has financial difficulties. that is what they will use the cash for primarily. they are also planning to invest 2.5 billion euros in the joint venture. >> thank you very much. just to bring you up to speed, this is a fashion retail business that suffered a fire at one of its dish or be should and centers over the weekend. -- distribution centers over the weekend. the technology structures of the building have not been affected by the fire.

i guess one advantage is you don't have too much of your stock standing still at any one time. they recommence taking orders this morning. share pricesow the affected this morning. >> the second bank to plead guilty in the u.s. this year. they are said to be close to settling with regulators. >> a couple weeks ago we thought it was going to be $10 million. everybody in the ministry is lobbying. we understand it was 89 billion dollars. i think with the new information the vote of contention was that they would probably plead guilty. the transactions breached regulations in regards to .anctions they invested $100 billion.

there is a guilty plea. i think the big progressive piece was originally the discussion was the dollar in the united states. we understand as a result of pleading guilty in may be a beber of months they would restricted in terms of dollar payments. that was the progress. the chief operating officer already has gone. employeese other could also be leaving the bank. he is the individual who has gone after it quite robustly in terms of getting recompense for

these breaches. >> how does this compare with what we have seen? >> hsbc also reached sanctions. $1.9 billion.d you are looking at three times what hsbc did. the next piece will how do you pay the fine. do you issue capital? >> it is wiping out all their earnings, isn't it? >> this year's eu summit is said to be a tense one. the european left has lined up behind jean-claude juncker. what did the centerleft get in return?

what is the latest from the centerleft? that's where we have heard the latest information, isn't it? >> this is coming out of paris. in return for supporting merkel they got the head of the european parliament. is did they get policy concessions? there is a lot of speculation that is the deal this morning. here's where it stands at the end of this week. around eight or nine countries junckup behind younger -- er after that meeting. we know david cameron is opposed.

you have sweden and the netherlands. their opposition maybe a little less strong. if cameron loses this it will be an embarrassing defeat. there will be a lot on why he decided to make this an issue for fighting on. >> what is going to happen next? we haven't eu summit later this week, haven't we? >> we have cameron meeting today. we will see how firm he is in his opposition. the question is does he throw in the towel. and when eu leaders get together in brussels whether that will

be a coronation and whether cameron chooses another fight to wage his battle. >> thank you very much. alstom.decision day for our next guest says the french government would prefer to have european national champions. our next guest joins us to discuss the details next.

>> time for company news. debuted at men's fashion week. the second quarter is in line. >> the first quarter was very the second is going to be good. we have to wait. for us winter is 70% of the business. >> the company is said to be hiring more than 100,000 people in china to work on the iphone six. welcome back. london is 16n

minutes past seven. ge has sealed its biggest theisition ever, overcoming largest hurdle for energy assets. discussion,or a jonathan robinson. it was supposed to be decision-making, but it seems that happens over the weekend. give us your thoughts. siemens was going to be victorious, but ge ends up. >> there was a feeling they may want to keep the business in europe and create a few national champions. it looks like they were concerned that he would oppose take somedeal would time, and they have pushed ahead. >> what would ge do to win over a rather reluctant government?

>> they accepted the government could have a 20% stake in the business. they also created three separate dismisses. renewables, nuclear power, and the grid business. this was to reassure the french government oust him -- alstom would still have some. >> what do you make of the french government's role in all of this? 20% have managed to get the stake. they could have blocked the deal or tried to? >> they could have. they have been struggling for a while. they made some unfortunate decisions to bet on nuclear and new coal in europe. the energy business is becoming a business of scale now. we saw a rolls-royce selling assets because it wasn't big enough.

we saw shanghai turbines take a stake in house tom -- in alstom. it's a consolidation. if they block the bid now alstom might run into trouble. >> where does this leave the men's? siemens in this marketplace? .> they are still quite strong they have about 30% of the european market if we look at what we have done. they have a similar volume low believe. they are a strong player. it could then affect them. both is an opportunity for players to increase margins on new equipment sales. played a think they very savvy game coming to france twice to talk to the french government about this?

all thehink he played right cards? >> i think he had to, and i think he played it quite well. art of it was the fact that als tom didn't give them a heads up. i think that annoyed him and made him seek somebody else. they have definitely turned it around. coming here and having the right people to push through. i think they handled it fairly well in the end. incident scared off future investors in french business because of the meddling of the government? >> no. if you are investing in the european energy company you have to face the fact that the french government is going to want some involvement. theas always likely government was going to have some involvement. i think if you were doing this kind of business you would suspect there is going to be

some issue. there was always a prospect somebody else would make a deal. >> thank you very much for joining us. great to have you. >> 7:20 in london. where can you find 28,000 kilograms of strawberries and evan thousand leaders of cream? >> not in my fridge. wimbledon. that's not all. more on the numbers behind the break. ♪

>> welcome back to countdown. >> 7:23 in london. wimbledon kicks off. fanseds of thousands of will gorge themselves on strawberries and cream. caroline hyde is tucking in already. they are excited. you are excited. i'm excited. anna is excited. there is a lot of excitement today. >> it is. me. at the crowds behind i was speaking to one australian lady who has been here since 3:00 this morning. getcan see as they wait to there hands on tickets, which have really gone up in price.

swiss, thet the americans here. andy murray has really gotten the brits excited. you see more and more ways a look to cash in. they have driven ticket prices up. it costs you 148 pounds. now they are selling in excess of 3000 pounds. and the bench as well. securing a place every day for five or six years. 80% inches have gone up prices. it now costs 50,000 pounds. this is the way wimbledon is trying to cash in on that excitement. even though andy murray one last

, they even saw profits fall last year. 25 million is thomas they are going to be paying in prize money. >> i am sitting next to somebody who has queued all might to get to wimbledon. >> thank you very much. >> did you sleep? >> i probably does. >> what did you drink when you are in the queue? >> t. still to come, is costa rica a beautiful destination for businesses? that is coming up next. ♪

>> welcome back. we look at sterling. written pound is the most traders.urrency among moste british pound is the coveted currency among traders. hedge funds and other onculators are more bullish sterling than any other major currency.

sterling surpassing for the first time since august of 2009. have boosted their forecast in anticipation of further gains. thet forget some of committee members tomorrow appear before members of parliament to testify. it was in may the bank of england seem to portray the message rates wouldn't be raised until the first half of next year. how things have changed. that is one reason sterling is at a five-year high against the dollar. >> these are the top headlines. insurgents in iraq have captured more territory near syria and jordan. barack obama is worried the violence could pass into other countries. john kerry is now in cairo.

if the first stop on the middle east tour designed to convince to deal with the violence. an israeli teenager was killed in the golan heights. embroiled israel deeper into the conflict. werewo is really teens kidnapped in the west bank. bnp is said to be close to a allegations it violated u.s. sanctions. the person says the bank will probably plead guilty next month to a criminal charge of violating u.s. law. look at just have a what is happening to futures. stock market set to open in about 28 minutes time. we could see futures trading higher. the big event this week takes

place tomorrow with mark carney testifying before him peas about the main inflation report. it was the report when he suggested rates would stay unchanged. a lot has changed since may. tryhey had these tools to to deal with the housing market. they met. we don't know what they decided. later this week we will find out about that. of things tole watch out for. >> costa rica has defied the odds. on them set their sights trophy. we are looking at the rewards for doing business in the central american country. byare joined exclusively costa rica's ambassador. foremost, how does it

feel to knock england out of the world cup without even playing us? you beat italy. england is noly longer in the world cup. how do you feel? first congratulations for getting through. >> inc. you. you confident about the rest of the world cup? >> of course. as you can imagine. we are thrilled to move onto the next stage. you can imagine people at home are thrilled we made it to the next stage i think the team are very good. i had the chance to see them play in february of cantwell at that game

scored, and they were fantastic. >> were their real ambitions to advance the on the group. many were saying they were a three team group. they weren't even looking at costa rica. expectations of advancing out of this group? it's a very tough group. >> we are the only one in that group who has never won the now with thethink consistent quality of the game we have had, perhaps our expectations are high. >> what are your expectations for the costa rica and economy? tommy about the economy and how it has diversified. people thought the nanosecond coffee. now there is electronics as well. our primaryago

commodities made up to 50% of our exports. now they are only 10%. they have diversified. aresain export wectronics and services, so have been very successful in diversifying that the economy. the reason we have been able to do that is we have a high labor force. that has to do with very progressive social reforms we in the 1940's. >> tilde country is 102nd and the world bank business report. what is the country doing to to lure moretion,

high-tech investors and expand the domestic markets? >> we actually have a series of incentives for direct investments. we have three zones where you get a series of tax incentives. investmentsdirect have been increasing, and we in thery big names country because of the quality of the labor force, while we have to make improvements in infrastructure, we are certainly very competitive. >> how do you make sure you don't become too reliant on anyone big player. well you welcome any investment in manufacturing facilities, you

never want to become too reliant on one particular business. >> i agree. we actually are fairly export 4000 we types of different products to the world. electronics, we have the support and so on. you also have to remember we are an important tourism destination. >> tourism is the biggest percentage of your economy. does that make you a slave to the fortunes of the currency? i know it is down nine percent to the dollar. do you need that currency to

deeper she ate further to keep attracting tourists? >> not really. i wouldn't say so. we would perhaps be more vulnerable to prices outside. where you getrket the tourists from. >> the world bank has praised some of the moves toward foreign direct investment, but they also mentioned a sticky level of poverty rates the country had some early success in reducing, and now it seems to have plateaued a little bit. can you tell us what the country is doing? program that gives incentives for children to stay in school. that has been key and has helped a lot. >> they say england getting kicked out of the world cup cost

the economy tens of millions of pounds. has the performance of the costa rica in football team boosted the economy back home? >> i was reading it has increased sales, and people are quite happy. retail companies have seen an increase in sales. >> on friday i tweeted a photo of the mascot in supermarkets all over the country. they for joining us. >> thanks for having me. >> that's the big game tomorrow. costa rica against england. >> for the first time in three years the demand of tickets for wimbledon tennis is higher for mens tennis then for women's tennis. -- higher for women's tennis than for mens tennis. destroyed the main

warehouse of apple. will it also shared -- melt the share price? ♪

>> welcome back. >> it is 7:43 in london.

the first all has yet to be served at wimbledon. there is a battle of the sexes that women are winning. caroline hyde is back at the tournament to explain. >> i am joined by the head of operations. it's a marketplace for tickets individuals. what is amazing is the ramp up .n price for the women's finals >> we allow people to buy any ticket for any event all over the world, but wimbledon is one of the jewels in the crown. we see 50% more demand for women's tickets than we saw a few years ago. men's tickets. >> why do you think that is? ?s it cheaper

what are men's going for? >> they are going from two hundred pounds to starting around 3000 pounds. i think women's tickets are seeing an effect of andy murray winning last year. yet the prices are cheaper. the wimbledon final is going to be cheaper to get a hold of than the men's. maria sharapova who won the french. serena is back again. it really is competitive, and of course it's more affordable. >> you say andy murray having one helped with demand and interest. is it the brits accessing your website? nationally where are we seeing the interest? >> we are seeing it across the globe. a real increase

this year. more than ever people are coming from across the world to buy tickets. the of that has to do with fact that people have the confidence they can buy before they fly. before take her chances with somebody at the auction site not knowing what you will get, but now you are guaranteed. your ticket will be there. >> is there a concern tickets could get too expensive? is it pricing people out of the do people queue up and hope? >> people can be here and queue up and get a ticket, but for those who want the confidence to know they have a ticket for the go and they can use go get the ticket they paid for. they really are

bargains. if you want to be at the men's final chances are it will be higher. >> especially if it is andy murray. in?much can you cash one lady has made quite a killing. 90,000 pounds she sold the over 20,000 pounds she ind for a five-year one 2011. amazing profits to be made. back to you in the studio. >> inks, caroline. largest online only fashion retailer has suspended taking orders over the weekend after a fire in its warehouse over the weekend. the website is up and running again.

the impact iss charles allen. we have had nothing from the company to say they are back in business now. ,> it seems that the key things automation and distribution are all working. it's just the stock, which i guess is better for them. >> what does this tell you about the risks of being an online only business? >> they typically only have one and are very susceptible to disruption. if you imagine a retailer that they would0 assets still have 99 other ones or in many cases more than that to continue. your whole retail operation is very concentrated. >> i suppose analysts are trying to work out what this does for

the company. they are trying to work out how much the stock is damage. we don't know how much business stock is damage. >> we are in june, so the question is is it the end of the spring season stock, which would be disappointing for them but or the end of the world, auto merchandise would be much more difficult to replace. it would hinder their sales. there is customer satisfaction. >> it has been a difficult year for the company. shares are down 55%. realistically, the online only model, people have got to be conscious of a number of things. companies seem to have been going for customer acquisition

as the key metric to drive sales growth but without perhaps keeping as much of an eye on the cost as a lot of other people. next obviously has profitable makesers, and yolanda losses. >> thanks for joining us. of data.to come, lots manus cranny will be here to tell us what to watch. stay with us.

>> welcome back. i am mark barton. >> 7:53. we will be getting an indication of the health of the manufacturing data. ecb will be trying to figure out how much we are working through the market recovery. manus joins us for a preview. >> you are going to seek clarification that germany is powering ahead. you are going to go for an expansion in germany and still a contraction in france. you are looking at the 12 month in a row were europe was in

expansion. 12 straight months in a row things have gotten better. ties into the health of europe. it can be the fifth consecutive quarter of growth. can tell you the whole of europe is out there spending. i have never seen as many people. i have never seen as many europeans moving at the same time. >> mario draghi will be pouring through these statistics to see how strong the recovery is. much formulating what is forward guidance mario draghi style.

it doesn't exist anymore. today i tell you things are going to last forever. draghi in the telegraph article over the weekend refers to the recovery as being weak, fragile, and uneven. he has indicated rates will remain low for at least two and a half years because he has prolonged the time over which he is going to provide finance. >> he borrows money and then has targeted long-term loans which will last for years. time.for a long that's the message. >> they are at a different moment in the cycle in europe than the u.s.. >> thank you very much for the latest on those pmi numbers. we are going to look for a measure of how the euro zone economy is doing. we start with france.

then we get germany and the eurozone as a whole. we will keep an eye on that and alstom as well. >> trying to seal the deal as the bidding war draws to a close. anna is with us next. see you tomorrow.

>> welcome to on the move. we are moments away from the start of equity trading. china's latest reading topped estimates. elliott gotkine, manus cranny. elliott, let's start with you. >> john kerry has landed in iraq conversations with political leaders aimed at trying to get .hem to form a united front will the new york justice

department announced a final deal in terms of the fine levied? caroline in paris. >> the battle for alstrom could be almost over. this comes after they agreed to a 20% stake to the french 0%vernment -- to sell at 2 stake to the french government. >> data is just coming in. i can tell you it's a week number. it falls against a forecast of 49.5.

that is weaker than expected. how the first day of trade is kicking off. eurot's check on the dollar. this builds and adds to the view that france is the weak link within the overall recovery. what does that do for draghi's message over the weekend, talking about lower rates, putting more pressure on the stepping the arguments toward quantitative easing. the euro-dollar trading down. equity markets we are expecting a little bit of a change. it actk of england, will market? the mortgage

we wait for manufacturing data and for the whole of europe. you are looking for an expansion for the 12 month in a row in terms of these numbers. badave had some not too chinese data coming out. the market seems to have moved the agenda a long and focused more on the european story. let's focus on the three antagonists. ge is getting their hands on the turbine business. french government doing a deal. caroline will go through the details. siemens is in theory the loser in the deal. the warehouse getting knocked out with 20% of their stock off-line. back online in terms of taking orders. a news will do

conference, a conference call around 1:00 london time to defend themselves. .hey have decided to push back said, we are stepping closer to it. we understand a settlement of .ight to $9 billion you have a look at the euro, but i do want to look at the pound because we have a great piece from jpmorgan talking about dollar sterling. this is the most coveted currency. you see a lot of memories their overall targets by the end of the year. >> you are just trying to fund more expensive overseas holiday s. let's pick up on one of the

market moving scenes with a member of the invest meant committee where he helped oversee about 50 billion euros. thank you very much for coming to speak with us this morning. let's start by looking at the french economy because the french manufacturing pmi number coming below estimated. just how sick is the french economy? >> it's not a surprise. we know that france has been relatively late in implementing some reports. i felt i was years younger with in theking a stake french steelmaker. no surprise there. things will move gradually in europe, and probably france will feel that because we had this

delay in implementing structural reforms. that's why we are much more focused on liquidity place in europe and banks. we think the real brights bought is strong support from the ecb. suggesting0 wehi could see rates low to the end of 2016. he was talking about how banks will have access to unlimited 2016, suggesting that is some sort of guidance. is that your view? are we going to see this accommodative start to the end of pointy 16? >> we have seen in the measures of 2016. -- by the end >> we have seen in the measures announced they are looking at low rates. these comments are just adding fuel to this package of measures

and announcements. think is very important and may be missed by investors is when the ecb has announced , theyd of the program have told us a sickly they are happy with quantitative easing. they supported it in two stages. first in the eurozone. now they don't stabilize them anymore. say it has been overcome. >> perhaps not enough for people at the imf who have been suggesting the ecb perhaps needs to do something a little bit more like quantitative easing even if you suggest that is a start.

>> maybe the ecb hasn't been as proactive as the central banks like the bank of england or the fed. it's probably down to the nature of the monetary union, but i wouldn't dismiss the ecb action, and i wouldn't rule out further i think theuse little buzz word is intervention. we are not finished yet. that's something the markets in general should pay closer attention. >> thank you very much. we will get further thoughts from him. here is what else is coming up. the online retailer suffers another eight below with shares down 50% already this year. 's bidding war draws to a

close. and bnp may be nearing a settlement with the u.s. government and the guilty plea. stay with us. meanwhile, you can follow me on twitter. we will take a short break and be right back.

>> i am an edwards. let's have a look at one stake -- one stock on the move. they have been at the center of

the bid between ge, siemens, and japanese partners on the other side. and selling part of the state to the french government allowed the criteria the government has met. we see the stock trading a little bit higher. john kerry has landed in iraq this morning. he will hold talks with nouri al-maliki and other political leaders after a week in which sought gunman take control of with syria.rossings have things gone from bad to worse it seems? >> it seems that way. there is a high percentage of -- higher sense of urgency as to what is going on in iraq. that is exemplified by john kerry's arrival.

he is set to meet with the prime minister to try to form a government that is more inclusive of all iraq he's and a better one to rally as a whole. demoralizedr the iraq he army. john kerry explained exactly what he thought ought to happen over the weekend when he was in cairo. >> this is a critical moment where we must urge iraq's leaders to rise above sectarian motivations and form a government united in its determination to meet the needs, and speak to the demands of all of their people. iraq he government wouldn't necessarily be better placed to help the army retake some of those losses over the weekend.

the insurgents now control a swathe of iraq stretching from west. mosul to the president obama over the weekend expressing concern there could be spillover into some of the allies. >> so far iraq he forces have managed to defend the largest oil refinery from the insurgents. up eight us. >> yes, this is just to the there hasn't been much disruption to iraqi oil supplies. investors are still getting very twitchy. there are five and a half year

high. are at a five and a half year high. >> thank you. , john.ith us thank you for staying with us. let's talk about the impact this geopolitics is having. >> we're quite constructive, but you need to distinguish the driving forces of higher equity markets. valuation in japan. those are very specific drivers for higher equity markets. situation is oil concerned we have not seen major discrepancy. the facilities to the south so far are not threaten. should we see any movement

further to the south, knowing that they are exporting 2.2 million barrels a day, which is arabia,nt to saudi kuwait, etc.. >> as this crisis continues, are you trying to run scenarios in your investment that assume various effects that will have on global demand? is it something that is becoming a real issue for you? >> this is something we are constantly monitoring. we are talking about only 10,000 combat ends, so it's still a very small force. theon't anticipate so far oil price moving beyond 130 u.s. dollars, which is basically what

we have got in mind when the situation becomes very messy. ge has sealed its biggest acquisition ever, overcoming the last hurdle for the purchase of alstom energy. caroline, who is in paris. >> that's right. it was a very long weekend of negotiations and discussions stom and the main stockholder. you had themight officially approve the offer. the condition was to take a 20% stake. becamewhen it complicated because the main shareholder didn't want to sell

at the same price. finally they came to a compromise. 20 months toe transfer this state. >> they are making some comments this morning. the french government making some comments this morning. and the ceo. what are we hearing? what he said. you people are saying the deal is positive, that this is good for the economy.

tosays it will remain alstom. also the french finance minister said this morning this deal will because taxpayers money they will sell other companies in order to pay for it. >> still with us for a few -- for a few let's get your thoughts on this deal. it seems the government has come .own on ge you said earlier it feels like you have gone to bed and woken up in another decade. >> absolutely. to overcome the

, it is very specific for american companies to use cash abroad has helped overcome the issues with this the of deal, which is not best deal ge could have hoped for which remains a good deal with the gas turbine business. >> menage a trois is one phrase that works in english. laissez-faire is another. state might wonder if the has the focus and reactivity to tom.art of a group like als the french have a lot to carry on their state. you wonder if they might lose a little bit on understanding of the situation.

we have to be clear. the french state is not pouring new money into the company. they are just replacing another shareholder. they are not getting support in terms of financial resources. defense of the french government, this is an energy asset. very worried.et >> that's there. let's not be naive. you can try tos have some degree of control. ou don't need to have a 20 percent stake owned by the french government. >> thank you. we appreciate your time. program, we the will take stock of the incident

that investigators are calling a deliberate act and what it means for the troubled online retailer. that is next. ♪

>> welcome back. let's bring you up to speed with some companies. and adding to a recall by toyota. the compact car

while nissan includes the queue. the taipei manufacturing company rose to their highest in years. this comes after the report they are hiring people to prepare for the launch of the iphone six. one stock we are watching this fashionis the online retailer which suspended orders after a fire damaged the northern england warehouse that handles most of its shipping. let's bring in charles allen. thanks for coming in. .e know they are up and running >> i think there are a couple of things. many of these online only

businesses only have a single warehouse. if it gets disrupted there is inevitably going to be disruption to the company. sales growth is an absolutely key metric. airfare sales growth is slowed by this that will affect the stock price. -- if their sales growth is slowed by this that will affect the stock price. >> what do we know? asked maybe 20 million pounds of stock was damaged. i think we need to know is if it endext season stock or the of spring and summer. if it is autumn and winter the sales disruption may be that much greater. >> let's expand on it. consideredbe greater. of the concentrated

nature of the distribution. >> you are absolutely right. they recently -- until recently only had a single warehouse. even a small chain may have 50 shops. if the flagship goes down that is serious but it's not the end of the world if you're -- as if your whole warehouse is taken down for a while. >> it has been a bad year, hasn't it? >> it hasn't been great. i think also looking at the strategy of maybe there needs to be a step back, so they will say, do we need more customers or more profitable customers.

>> thanks very much. draghi's fight against inflation continues. we will get some insight into canada's economy from canada's finance minister, next.

.> welcome back to on the move it is half past 8:00. we are 30 minutes into the trading day in europe. here is the picture across the equity markets. things are going lower in equities. manufacturing pmi number has risen. it is shy. of thetouch shy estimates. not missing up by much. and, it is rising, compared to radius months. this is the latest on currencies.

30 minutes ago, we got a disappointing number on the french economy. the manufacturing number came in below economists numbers. as you saw there, it is being taken in stride by the currency markets. these are the bloomberg top headlines. 's.aking of tmi, china manufacturing gauge came and. it supports the belief that the chinese economy will avoid a hard landing, thanks to efforts to spur growth. after the report. insurgents in iraq have captured more territory in syria and jordan. barack obama is warning that violence could cross over into other countries. john kerry has made to meet with the nation's prime minister later today. is saids set -- bnp

to be close to a deal. that is according to people familiar with the negotiations. the bank will probably plead guilty to violations of u.s. laws. for more details on that story in the banking sector, let's check in with manus cranny. >> you are right. the number that we last reported was around $10 billion. it looks like they are closer to settle in the ongoing dispute with the justice department in the united states of america. billions of dollars of transactions breached relations with iran and sudan. it could be an entire year's profits. this is where a new piece of information that we believe.

part of it would be a criminal charge am pleading guilty. as recompense for justice for transactionld be a in the united states of america. that might be for a number of months. that is according to the wall street journal. officer isperating already gone. the new piece today is a dollar clearing ability being restricted. >> how does this compare with the other finds, then? hsbc breached regulations back in 2012 and were fined $2 tolion after pleading guilty criminal charges for tax evasion. you can see that it is quite a hefty fine. how you pay the fine that comes

through. -- through? back to you, anna. >> thank you very much. manus cranny in the newsroom. let's turn the conversation to the macroeconomy. i am joined by joe oliver. as theviously served minister of natural resources. welcome to on the move. what is the biggest threat to the global economy right now? >> growth is a concern in europe. we have no growth. it varies dramatically between the countries. the united kingdom is doing better. the overall number is low, as is inflation. and the move by the european central date into uncharted -- european central

bank into uncharted territory. they move the economy forward. we look at china, some of the recent results are positive. there is a bit of a concern that things might not be as robust as they have been and moving at .5% a year. littlet moderating a bit? all of this could have profound -- could it moderate a little bit? all this could have profound implications. >> how well do you see that rebounding? >> we think they are on the road recovery,nably solid from a canadian perspective. our trade is with united states. >> let's talk about inflation and how you deal with that. you are lucky to have an inflation rate that is above

target, unlike the rest of the world. lowleem to be dealing with flation, if not deflation. >> a bit of good management, i should say. the core inflation rate has not moved up much and we think that we will be in the 2% target that was set by the bank of canada. the energy crisis moved it up and it has a double impact on canada. it raises the consumer gasoline prices. it also means more revenue coming into the country because net-exnet-x porters -- porters. about people speculating that we will see a higher interest rate. >> there are two things i cannot talk about, the direction of the

dollar and the direction of interest rates. they are the purview of the bank of canada. private indicated and, sector economists have indicated that it will move up over a three to four year period. past, the canadian government has spoken about the need for austerity. is there a temptation to move away from that? how would you view that? want to tell a bit about the canadian experience and how it has been successful. certainly, we believe in a prudent fiscal policy. whether we move into a surplus -- we are going to move into a surplus of $6 billion. approach toent fiscal policy and spending what

you can afford to spend, not incurring more debt, is the way to go. we do not want to leave our debt to our children and grandchildren. >> let's look back at the recent financial crisis. it has been said that canada has had a good crisis. what do you think, with a little bit of hindsight, was the single biggest factor in making that the case. was it the way the banking sector was regulated? >> it was three things. the banking sector is the most robust and stable in the entire world. we have significant natural resources. what was essential was a prudent approach to fiscal policy. ynesian approach and we did not go overboard. costs sinceained

then. that is crucial. we will now have more money available for social programs and to reduce taxes. the secret to canadian success, do you think that the canadian jewel export government ministers, in the same way that they have exported government -- financial ministers? >> thank you for joining us, joe oliver. let's change course as we had to break. -- head to break. as the tournament begins, what is coming up? shine sun is starting to and people have been flowing into the wimbledon championships. they start off at 11:30. 25,000 bottles of champagne.

will be talking sponsorships and champagne after the break. do stay with us.

>> welcome back. this is on the move. hundreds of thousands of fans are descending on wimbledon today. with ae hyde is there

guest for a look at the business of wimbledon. >> thank you. i am joined by paul. .e is a managing director he is a sponsor of the wimbledon event. 25,000 bottles were sold last year. what will make them go up much mark >> -- what will make them go up? >> crikey. if it is too hot, not too many people will drink champagne. this is perfect weather for champagne. been a spokesperson for a number of years. tell us what sets wimbledon apart. >> it is the preeminent tennis event in the world. to the ground. we have been with the club for 40 years. actually, they are aligned with our company.

it is a wonderful event. we try to get as many people to drink champagne and enjoy themselves at the championships. >> it is a french company. champagne, of course. english sparkling wine could come muslim yen. -- muscling in. an affiliation with tennis. we get involved in other tennis event around this world. nothing to the scale. event inhe preeminent the world for tennis and that is what we love about it. family organization and we have values that are in line with the club. >> what about it as an international sport? i have been in the queue with australians and americans. that thiss it helpful is an international brand, as well? >> hugely. we have american clients coming

in and we respect that immensely. the club. bigger than we know our role in the partnership. it gives us a five form for us to get ourselves going in australia and china. a platform for us to get ourselves going in australia and china. >> profits went down. we are staying to see ticket prices ramp up. is it pricing people out of the market? >> the lines. it is a numbers game. dayink it is an amazing out. it happens two weeks of the year and people love tennis. it is amazing value. when you go inside, it is value. it is great quality. that is the most important thing. >> you say it helps you around the world and you get the brand

in front of people's size. -- eyes. what do you actually read and reward from sponsoring this event? it must be costly to do. >> it works. we do a lot of advertising at the same time. anybody coming in we'll see nothing but our brand. we invest strongly to support the event. there is an roi on everything we do. it makes sense. so, it works. >> other sporting events that you look to sponsor? else champagne tie in nicely with sports? >> we did when the -- we did wimbledon and we are doing

henley coming up. in theory, we are doing all the key events of the summer where champagne is involved. it is all about the perfect start to starting -- sharing with friends. be atmes, it can wimbledon or henley, for example. we are always looking. we are quite comfortable with what we have at the moment. >> perfect. what would you like to be drinking later? what bottles of champagne? >> there are two. were is a white label that launched at wimbledon last year. it is a little bit fresher, if you like mouth-watering. it is really popular. anything would be fine. >> i can hear it popping already. yes, indeed. a key sponsor feels that is a

champagne moment. hopefully, he will bring out all the stops. back to you. >> thank you very much, caroline hyde. in the sun. it will get sunny. the pulse is coming up at the top of the hour. we are joined from the newsroom. >> hi. we're going to head out to paris and get the latest on the bnp settlement talks that are in need final stretch. we are hearing that the fine could be around $9 billion and include a guilty plea. we are going to talk about what that means for the bank and the impact on the transatlantic relationship. we know the president of france alked when he heard the some of the fine. we will go back out to wimbledon. g's will be with in

tennis division. we will talk about the business of building superstars and tennis brands. i will be joined by the head of peninsula hotels. they are about to open a lavish new five-star hotel in paris. it is a crowded market. they are funded by the qataris. we're going to talk to him about why he is trying to track into into paris and what he thinks of the overall business environment in france. >> olivia, thank you. here are companies on the move this morning. the irish jug maker rejected the latest offer for $46 billion last week. they will have a hearing at 1:00 p.m. london time. online retailer is forced

to hold orders over the weekend. chief executive says that they will see single-digit growth. speaking from the fashion show, she said -- reports oflatility the industry. ferragamo is growing. it has been growing in numbers and profits. it is growing in the key areas of the world. for the second part of the year. >> up next on the program, will return our focus to the business of wimbledon. -- we will return our focus to the business of wimbledon and

tell you why it pays more to lose. stay with us. ♪

>> welcome back. 8:53.a: 53 -- it is the most famous tennis tournament in the world. if you are ranking well, there is more reason to show up this year. >> centre court is how low turf. -- hallowed turf.

since the rides of a homegrown player, it is a battle for tickets. >> he doesn't get bothered by the members and comes to practice. >> to see andy murray will cost you twice as much now. d.five-year perio cost $47,000 -- its cost $47,000 and now, it will set you back $80,000. players have a reason to be happy. $45,000 for paid the privilege of losing in the first round of wimbledon.

since 2011.ise >> for the last three years, we have been trying to have increases in the prize money. we target the players who we believe need it most. difficult road. it is an expensive. >> the bills add up. when traveling and coaching are taken into account, the annual 100 $43,000,ch as according to one study -- $143,000, according to one study. they are putting broadcast rights before brash sponsorship. >> we could make more money. but, we would ruin the brand. thank brand has much to

for its past. the success now relies on not upsetting the status quo. caroline hyde, bloomberg. >> here are three stocks that are on the move this morning. let us focus in on them for you. a motoring organization. it is their first day of trading. byy started trading down 3.4%. they are recovering a little bit from the losses they made in the earlier part of the session. sure -- theyyork had a fire at the yorkshire distribution center. it is back up and running and they are trying to evaluate the implications for the business, of course. shire is down. -listed the ftse 100 pharmaceutical business. it has been the subject of much attention. will there be another bid?

we are also watching the euro. we get a june reading on manufacturing and pmi for the whole of the euro. that is coming out in just a little bit of time. i will leave you in the cable warehouse with olivia and the pulse team. . .

>> bnp pays the price. to 9will fork out up billion dollars to settle allegations that it violated u.s. sanctions. ge wins the battle for alstom. the final hurdle and clinches its biggest acquisition ever. and john kerry touches down. the u.s. secretary of state jets into iraq as the insurgents seize more cities. welcome to "the pulse," live from bloomberg's