on darkng a light pools. u.s. attorney general said barclays lied to hide high-frequency trading on the platform. mark carney taking center stage again. numbers released today. google on your phone and in your home. the tech giant is on a mission to put its new android software everywhere.

hello. welcome to "countdown." i mark barton. it is 6:00 a.m. thursday morning. on "the pulse," check out our interview to talk about the swiss watch industry. the new york attorney general has begun a lawsuit against barclays. alleging the bank lied to customers masking the extent of high-frequency trading. markets editor manus cranny is here to explain. before we get into this. what are dark pools? why do they use them? >> they have evolved. it is like a private trading venue. it is where institutions can go to execute high-end sell orders without talking about which side they want to be on.

otc, referred to as over-the-counter, hence less regulation. is less transacted. >> what is at the heart of this lawsuit? word, lies. lies and fraud. this is under the martin act. barclaysing that pursued the growth of the dark pool regards of everything else around it. they wanted to catch up with credit suisse. they lied about affecting them. >> our complaint alleges that this marketing a protections was false.

the grew the dark pool to largest of united states by telling investors they were diving into safe waters when, in fact, barclays dark pool was full of predators who was there at barclays invitation. and i willate protect you from what is known as high-frequency traders, apropos flash boys. and deceit.t fraud this is about marketing literature. this is a great deal of difference and that's not so. the high level corroborating a lot of this with the lawsuit barclays, for want of better words, marrying their trade and it's about taking

liberties. they are not part of this and they are not disclosing trade. >> what is the importance of trade bubble? >> dominating the liquidity within the dark cool. they were defined as being toxic. high-frequency trading company. thosee going to take opportunities. >> they have not commented have they? >> barclays has commented. they say they are examining the matter internally. the integrity of the market is a top priority of barclays. that is their response thus far. this is going to low up in the entire argument about where you do your business as a private individual. where are you and i safe? the pension fund safe?

much more importantly, institutions will now question the very validity of dark pools where they flew their flag for the past 10 years. >> what's the industry impact? dark tools, euro pools, this- dark will push the argument back toward exchange traded products, exchange trading. people want more transparency. transparency is available. it is in your car, your hand, google is on a mission to make its software ubiquitous. version ofiled a new the android software. for more, let's bring in caroline hide. good morning. >> google wants to become an android addict. beingant you to stop

quick to give up your android powered smart phone and perhaps changed apple. they want to make it into your car and home. they have been buying companies such as nest and they want you to become an addict. they have various keynote addresses and it's about making it easier. it is dubbed l, this new handset software. you can get access to new features from the app designs is to make animation all the more exciting. there was a focus for the app developer but also the hardware maker as well. they are saying to get your android into your television. get it into your car.

android tv, android wear, android auto. the operating system is for free . apple does not have so-called open-source and android does. they have sony on board, sharp, lg electronics pumping out new televisions that will already have the operating system within them. one. to play with a smart watch made by lg, you can speak to it. -- text message he was doing extraordinary things. show me pictures of pam does. saying you it was could stream these to your android, tablet, smartphone.

the courage toe sit on the tube and say "send pictures of pandas" with everyone staring at you? [laughter] >> why not? >> it will change the underground landscape. what about the cushion to emerging markets? >> this is where many felt apple should go. moreive c is not that much expensive. when you look at and radian group goal, they are at every single price point. this is all about getting phones that cost less than $100. for ae been using this while and it's really good. it cost less than $100.

leverage turnkey solution so that we can bring high-quality affordable smartphones so we can get the next billion people access to these devices. >> it's really about pushing here. they're integrating better the various op rating systems. there is another operating system called chrome -- they're integrating better the various operating systems. they want them to talk more seamlessly in this is about more seamless. they wanted to talk to your car, talk to the items in your home. it's about making the whole ecosystem easy to use. >> you do not want them to focus on competing.

to an appgo and talk developer, they put apple first. get the new product. that was the holy grail. then you worry about android which is windows 8. you have android with 78% of the market. are therefore thinking we should make android front and center. you offer free beers on all of the campuses and you get them to come around and network with each other. the keynotes and live streaming. you could watch it in uganda, london, all getting excited over a beer and how you would get it to write code about this new software. >> it tends to work, doesn't it?

hans nichols is here in berlin of theith a unique angle german game against the u.s.. are the germans quaking? >> i was going to use this opportunity to taunt you about the english departure but we have an interesting story coming up talking about what the breweries want from the german victory, how deep they go. is there a correlation between beer sales, hosting the event, and how far your team goes? if you host the event, you see an average increase of 1.7% on beer sales. brazil is expecting to see a 3.3% increase. if you just host the european cup, like england is doing, you see just a one point one percent increase. we will have all of those numbers and halftime flushes,

what it tells you about beer sales. >> can't wait. see you later, hans. but in brakes on the u.k. housing market. what does mark carney have in his arsenal to tackle the surging house prices? we speak to the chief european economist to find out. ♪

time for today's company news. hischief executive says $46.5 billion offer is "compelling value for shareholders." $27 million ined its ipo. the cameras let everyone from surfers to skydivers record their exploits sold shares for $24 each and will start trading on the nasdaq later. gm may need to fix the top-selling chevrolet cruise for a new type of airbag problem. 33,000 vehicles may have received potentially faulty airbag modules supplied by

jakarta. they have recalled a number of cars in the u.s. this year. welcome back to "countdown." i am mark barton. at 6:15 a.m. in london. recommendations will be made public later when the central bank publishes twice yearly financial stability report. joining us now is jefferies international managing your chief european economist, david. thank you for joining us today. what can we realistically expect from mark carney? ?ny measures to slow down alone to income ratio. there is also the possibility moving down the new zealand route restrictions on the very high value to loan ratios. getting a loan more

of the value of the house, it would the restricted. that affects the first-time buyer. loan to income ratio is simpler. >> what other measures? banks are having to hold more. is it workable? mmr, the mortgage market review, is getting stricter anyways. >> at the moment, particularly here in london, they will basically have the loan to restricting it to less than 500,000 pounds. obviously they are moving that direction anyway. capital buffers and they could even do it by postcode. moving across to financial stability he highlights the mps in the u.k.. we can make takes hold more

capital by where you live which would interesting. i think that all gets to very simple loan to income ratios. >> the housing market is slowing of its own accord now. do we need tighter rules? >> the process by which it is in place actually fits in with the mortgage market review. the end of the day, the housing market is expensive. we know that they will be raising interest rates. what they are also trying to do is look cap a lot more detail .bout debt levels by region

they have much more understanding about -- >> david, how do you ensure that measures do not hit harder the market that does not necessarily mean slowing down? >> the other thing i would is that housing is actually expensive. it is not just the housing market is cheap elsewhere. growing almost 20% year-over-year. >> and it has some people saying is 150,000 to

200,000 area and collect there needs to be some rules of the can to ensure that they choose additional steps going forward. be a next announcement 70 end of the day, the housing market appears to be taking off again than for the restrictive measures coming through. david, stay there. what he has to say about mark carney's recent testimony to the u.k. david allen, chief u.s european economist at jefferies. ♪

>> welcome back. i'm mark barton. this is "countdown." david olan is here. the implications on monetary policy at today's recommendations, what are they? the more they do, the less they need to do on interest rates. in theory, this should push back the first rate rise which makes it more likely they will need to rates less than the cycle. be 4.5% or five percent.

to extend out the duration of the cycle so we do not get a boom-bust. look to a long time of sustainable growth. >> do we need further clarity on u.k. interest rates or is that it? >> i think we wait. the issue at the last mpc meeting, the data flow might suggest a rate rise this year. they will not raise rates in august. does the referendum in scotland. there's no way they would raise rates ahead of that. in a meeting earlier this month, they said the market was not pricing enough risk in for the november rise. in a sense, we have had weaker data flow than they perhaps were expecting. inflation has only printed at

undershooting the mpc forecast in just under a month. >> can you raise rates with inflation around these levels? let's say november, december it is still around 1.5%. >> in the same way they did not respond to inflation when it was above target, he was doing more conservative easing. they could raise rates and they showed. it makes it more difficult so they have to do more were trying to investigate why inflation is undershooting target. we think this is more of a global issue. inflation in germany is only 0.6% and their unemployment rate

is 5.2%. here in the u.k., could inflation go lower? yes, it could. the weather,ata, health care. it was more than that, wasn't it? what's the take away? that janetnfirms yellen's fed will not be raising interest rates until the middle of next year. it's interesting from the u.k. perspective. level u.s. gdp is typically above where they were at the start of their downturn in u.k. the discomfort to where we were at 2008. from a behavioral point of view, the fed confirmed they would not raise rates until the middle or second half of next year. bank of england tanks we should raise them may be late this year. from jefferies, chief european economist. we will bring you the financial

policy committee report live at half past 10 london time. do not miss it. the potential fine for bnp. is the u.s. too tough on the financial services industry? our next guest makes the case. ♪

back.come i'm mark barton. let's get a check on the fx markets. definitely worth looking at sterling today. the king at the sterling-dollar meeting beforee mark carney later this morning. he's likely to unveil measures after last week's financial to slowommittee meeting down the surging u.k. housing market. sterling, little changed today. just a few days ago, on the 19th

1.7039, thehit lowest since september 2008. these are the top headlines today. the new york attorney general suing barclays. accusing the british bank of misrepresenting the safety of anonymous trading program known as dark pool. they say they are cooperating with the investigation. the nations crude export will accelerate, another sign that violence in the country's north is affect in the oil-rich south. next month's oil exports from iran will be close to a record high. mark kearney unveiling the stability report in just a few hours. economists forecast he will unveil new measures to cool the housing market. he said earlier this month that rising mortgage debt could threaten britain's recovery.

google already has its software on the majority of smartphones worldwide but in order to keep its top spot, it needs the best apps which means the best developers. to celebrate its new version of android, the company through it then surround the world for developers. correspondentess caroline hyde saw with the u.k. one had to offer. lured about 1000 developers to the google campus. free beer and t-shirts help to bet. they are trying to get them excited about the latest google creations. so far, so good. or they could tune into the google announcement from home, many show up to socialize. some are more serious than others. it's a bit more chilled up here, a bit of a sedate affair, the silent disco. to get app developers

excited across the entire business whether it is manipulating your mobile, connected cars, the latest smart watch, they want developers designing for the google android system. in >> we want to see what google is doing with android. free foodusly, the and drink. i wanted to see google glass live. on.ry it >> some are coming to play with the new hardware. some come to talk software. many just come for the free food. exciting toy pretty get creative. that should be financially beneficial for both. >> it looks like android developers will be very rich.

>> caroline hyde, bloomberg. the wake of the 2008 crisis, the u.s. was criticized for being too lenient on the financial services industry. nymex guest now says the problem is the exact opposite. morris reid from the public .ffairs and strategy group thank you for joining us. always good to see you. you're now saying the u.s. is too aggressive and it's going to fire where the criticism before was that it was being too lenient. aggressive inbe your own domestic market but when you're having these types of unintended consequences around the world where americans cannot even open bank accounts, you have banks in france where the president has to intervene with hours to fix the problem, perhaps this compliance notion may just be going a tad too far.

>> all the conversation with obama did not yield much, did it? the significance of what is going on when heads of state have to intervene on their behalf. if you look at the situation here with barclays, frankly a historic bank in the u.k. doing a lot of good things, this of the second time they have come under significant scrutiny from a u.s. regulator. i'm surprised that cameron has not stepped up to really weigh in. if you look at the financial services industry as it relates to this trade pact they want to do with the u.s. and eu, this is one of the problems. theontinues to allow americans to be aggressive and sometimes overreaching. >> what can you do? it hits transactions amounting to $30 billion by leading sanctions against countries like

iran and sudan. shouldn't they be punished? >> of course many do something as blatant and outrageous as that. that a lawt to think and has weighed in this way -- it is stark to think hollande has weighed in. the watern over in for alstom. >> it was a pound of flesh. hollande did a great thing. he got something for france. heads of state really have to find out and interact. this is not the domain of a head of state. frankly, we would rather obama focused on other conversations with alon hollande. astro-pfizer deal, do you think congress will act on these tax inversion deals?

probably not until after the election, but is that impending? will we see more and more looking toike pfizer use overseas money in this matter? are two editions. americans are starting to worry about if other capital is welcome in europe. you had the situation with ge and great written with pfizer. can we do business with europe? you have a lot of guys like me wondering about that. about know it's not just business. it's also about taxes. >> the ge situation was not -- was about competition, keeping americans out. they may not be exactly like us. >> is that the sense that american businesses have? let's keep the americans out?

or let's protect our key industries? you want your companies to work in america and do business with america, don't keep them out when they want to acquire a fantastic business. to your point about the tax shelters, this is an ongoing problem that obama could have dealt with. if he would have come up with a gate system allowing companies to move capital back into america with a one-time tax, i don't think we would have this problem. he really missed this opportunity so you know when congress gets involved, they tend to overreach and it is because the president frankly did not show leadership on this issue. >> this leads me to the sanctions issue when it comes to russia. there is a concern that if the u.s. goes ahead and imposes further sanctions on russia, u.s. companies, oil companies, it might be to the detriment of

their business whereas it might actually benefit european oil companies. is there a worry within u.s. business if the u.s. goes it alone on imposing sanctions, which has tended to do so far? led don't know if it's a the way. sometimes we've just been stupid. one thing i learned from my former mentor is a commercial diplomacy helps to bring down barriers. when you keep goods among products, and services out, it hurts american businesses. the fact that they would have a head start over axon is a problem. the fact that bmw would have a head start over general motors is a problem. understandneeds to that when you impose these sanctions, you ultimately hurt the people but you also hurt american business. >> you need to put pressure on putin. that's the idea, isn't it? john kerry has warned of further

sanctions. he said if russia does not de-escalate tension that there will be further sanctions whether it's on energy and technology. does further pressure need to be put on putin to de-escalate the tensions in the ukraine? haveoton said we could started it by cutting off his major market with the gas. it was obvious we wanted to export to our friends in europe. i believe that commercial engagement is the way to go. if you really want to deal with putin and leaders around the world that you may or may not agree with, president obama said this going in. we really fumbled the reset. looking at syria and other conflicts around the world where russia and china may have a .tronger play i think we miscalculated this and we missed a historic opportunity.

>> has the u.s. miscalculated recent events in iraq, morris? i have the former ambassador to bahrain on yesterday. obama was warned that insurgents back in 2010.d has he missed a step there as well? >> history will tell us that americans in the situation from iraq the way we engaged them through the war and how we engage them to try and rebuild the process has been one entire miscalculation. al malik you should not have been the person we propped up. when we try to intervene and select leaders, that's when we have a problem. let the people select to they want their leaders to be. i think history will say over time that we really screwed up and we need to double their investment. this is our problem first to fix. >> will hillary clinton in

gauge? a nice segue. [laughter] engage ifry clinton and when she becomes president? we don't even know if she's running at. full disclaimer, morris worked on the bill clinton al gore campaign back in 1996. >> i'm looking forward to a strong leader. >> is she that person? >> i believe she is. >> she's on a book tour to promote her book "hard choices." she has been pounced on for a couple comments she made. she said both of the clintons were dead rope when they left the white house and she spoke to the guardian. she says the couple was not truly well off. is there a fear that she's becoming too disconnected from americans? >> when you leave the lighthouse -- the white house with almost $20 million in lawyer fees and

that, they have lived on the public payroll their entire lives, frankly, she was saying from a mental standpoint not bottom-line dollars and cents. when you leave with that amount of debt, you have to feel the pressure. >> a bad choice of words. >> this parsing of words, what she was simply saying was that she and her husband had to get out there and make a life like every other american restarting their lives with $20 million in debt. i understand what she was saying. the one thing above about withry is she gets better time. she's like a fine wine. when she's on the trail, i think she will get better. she's been secretary of state, lost the presidential campaign. this is similar to what she did with the listening tour when she ran for senate. she fumbled and had some mistakes but i think over time, she will do just fine and

hopefully she will decide to run. >> and if she does decide to run, will you be taking part? minimum.s my vote at a >> morris, come back. morris reid. three goals and his sponsorship deal that could bring in war. the latest from the brazilian world cup. plus, why there is more than just national pride at stake for germany. brewers in's particular are holding out for a victory. -- the country's brewers are holding out. ♪

♪ >> time for today's world cup news. switzerland is through to the 16 after a stunning hat trick put ponderous out of the competition. even though they had possession for over 60% of the match, they failed to put a single goal past the swiss keeper. they will now take on argentina for a place in the quarterfinals. the ghana football tame $3

million richer after he chartered a flight of cash to brazil to settle the appearance fees. apparently they demanded cash delivery because many of them do not have inc. accounts. now the money worries have been resolved and ghana can focus on their all-important showdown with portugal tonight. they have to win the match to be in the chance of progressing. a adidas said they will respond into the luis suarez biting incident. many are saying the striker risks losing his sponsorship they found guilty. after he was banned last year for biting, adidas reminded him of the standards they expect from the striker. .elcome back this is "countdown." germany takes on the u.s. today on the world cup and it's more than just national pride at stake. for german brewers, it is the

bottom line. international correspondent hans nichols looks at the foam, the beer sales.orld cup >> fans are thirsty a special or he -- especially in a victory. >> they need good summer weather and they need the national team to go deep into the tournament so that beer gardens like this one stay open late and everyone drinks when germany scores. beenrywide, sales a declining since 1976. back then, the average german one pint of brew, 300 days per year. in 2013, that had fallen to 106 liters per year. uerei have an economic incentive to root for the home team. some of the biggest may need to work with their brewmaster's

overtime. >> if germany does well, breweries report they have sold one million liters more beer than on a normal day. >> there's another way for the beer intake. the berlin waterworks has its own technical analysis, halftime flushing. when germany played ghana, water use tripled during the break and then a return to the norm after the match. no late-night partying. the game was a draw. >> hans is in berlin. what is this a year effect worth? -- what is the beer effect worth? >> one million liters for every about 655 have million liters and i've done the math for you. that is .15% per game.

if they go to the finals that is a 1% increase. historically, the winner is the host country. 3.3%e will be getting a bump. -- brazil will be getting a 3.3% bump. there is a hangover effect. duringkers drink a lot the world cup, sometimes they spend a little less in the fall. who theook though and big beer drinkers are per capita consumption. the czech republic at the top. closed top of the list, germany, then the u.s. all the way down and 77 liters per person. brazil, 68. onlyin is 22 on the list, 68 liters per person per year. i'm sure you do your best. >> i'm amazed. how many drinks do you have when the u.s. lays foot wall during the world cup?

>> they don't play football. that's a trick question. they play football during the super bowl. [laughter] i'm a light drinker. here is what we go back to the berlin waterworks, the people, the utility providing the numbers on flushes. we will see whether or not there is an increase if germany wins tonight. will we see it in the water? draw andk it will be a both the u.s. and germany will go through. the european commission giving the green light to merge and the pair also reporting earnings in eight minutes. more on that. stay with us. ♪

>> welcome back. i mark barton. greenlight for the european commission for the proposed merger between u.k. electronics retailer dixons and carphone warehouse. both companies reported earnings of the top of the hour. here with more to discuss is european business correspondent caroline hyde. >> it's been more than a month since today propose the all share merger. >> no such thing. >> dixons has about double the amount of sales than carphone warehouse. they have a lot more retail assets. it's a confusing merger. why they want to combine it to

retailers.ine there is also a worry that these mobile network providers, ee, o2, they are starting their own shops. there were rumors that ee might not sell through carphone warehouse. we want to get a bit of an update. is the merger still going ahead? are they still promising 800 million pounds as they combine? will they be able to provide the annual sales of 12 billion? we get full-year earnings. dixons looking to have sales 12%. carphone warehouse sales almost half of that. still, seeing an improvement in profitability that will break at 7:00 a.m. >> "countdown" continues in the

next hour. starting a suit against barclays for alleged fraud and deceit. ♪ . .

darkp ning a light on pool. the bank of england financial policy recommendations on the housing markets are released today. >> google on your phone and on the road.t on a mission to put its android software everywhere. >> the dixons and carphone warehouse merger gets the ok from me eu. both companies are set to report earnings now.

hello and welcome to "countdown ." i'm mark barton. >> i am an edwards. it is just gone 7:00 in london. new york's attorney general has a lawsuit against our quiz. -- against barclays. to explain. is here before we get into the details of the complaint, let's talk about dark pools. >> dark pools are private trading venues. the new york stock exchange and the london stock exchange. you see who is buying and selling. who's in the market and who has got what orders. offset over here, get together, nonregulated. do their transaction. do it in private. do it as a block trade. it is about internalizing orders.

that is part of the issue. it's a haven for institutions. are, 40% of u.s. trade done in dark pools. >> what is at the heart of this lawsuit? raud, duplicity, deceit. those are not my words. they are part of the words eric schneiderman the new york attorney general. theirys wanted to build dark pulled business and they would stop at nothing to do that. this is lying to customers that they were protecting them. thatr complaint alleges this marketing up protections, a system of safeguards was false. the lawsuit charges that into onegrew its dark of the largest by telling investors they were diving in to safe waters when in fact pool was full

of predators there at barclays invitation. thatding the fact liquidity was protected, altering marketing materials as part of the lawsuit as well. making false representation, saying high-frequency traders, the amount of high treatment the traders is 6%. fact, more than 50%. this is verbatim, taking liberties with the truth in. terms of present and how many high-frequency traders critically important -- toxic players. and they are helping themselves. tradebot.upso who or what is -- wereare referred to as taking barclays, advantage of liquidity. they were toxic. they provided liquidity. from ah would you bear

customer that when that when the customer is getting liquidity to are your dark pool, giving a substance. how much pain will you take, customer? if they are providing the essence of what you're doing with the dark pool. employees objected to tradebot being removed from the dark pool, because it provided so much liquidity. >> lower costs, higher fees. how has barclays responded? >> they released a note today for notification processes. will update the market in due course. barclays said that they are examining the matter internally. " integrity of markets is a top priority of barclays. the very argument is this -- the evolution of dark pools was to provide liquidity and protection

without having to fly the flag i am doing a trade. this is the beginning of the unpeeling of the onion of what is a dark pool. how much more regulation should we have and do they and should they provide -- boys,"author of "flash a book on -- >> high frequency traders? >> are you and i protected? we, the retail investor? this ha! into question why you went out and quartered every institution saying come to us. we will protect you from the scavengers which are known as high frequency traders. my word, not a bloomberg word, scavengers. the heart of this complaint is that this dark pool misrepresented what they were

doing and the essence of their business. barclays have, with their statement. on the other side of the trade and they said the integrity of the market -- can you imagine anthony jenkins took this job on from bob diamond. ppi, the list goes on. not the only institution with investigations. >> barclays says that they will update the market in due course. we wait with braide -- bated breath. >> google is on a mission. it unveiled a new version of android software. for more, let's bring in caroline hyde who listens to every single minute, 2.5 hours. >> yeah. android head took to the stage. this is what google was about yesterday, about making human android addict. about it software, trying to make it more interesting for app

developers and more interesting for hardware developers to start creating for android. we got a new version of the software for the handsets and the tablets. androidwith its operating system, only has 78% of the smartphone warehouse. it is a dominant force. so they've got a new way to design. you have got more privacy tools. more features to create better emanation -- m nation -- better animation. they lorded them in with -- they lured them in free beer and barbecue's. and they even rented out a club. trying to be cool. stay tahe ad of the game. in uganda. this is an international project. this is also about hardware. they have android tv. android auto.

software to put in hardware devices. they are offering it for free. it is open source. they have teamed up with sony, sharp, lg. there were updating the smart watch they made with lg. you can talk into it and request pictures. you say, ok, google text mark barton. and you read out what text you want to send. it will ink up -- link up to your phone and sent a message. they want it all to work seamlessly together, whether you are just on your phone or down the street or in your cart or t home talking to your thermostat. therein lies madness. talking to your home appliances. maybe that is a feature. they are looking to push into emerging markets as well. >> interesting, because we know the second dominant pair up is

apple's ios. apple makes luxury products. it has not gone with the cheaper phone. whereas google has. they have htc making cheap phones that managed to penetrate emerging markets. they want to do that more. a dominant force. and they unveiled this new android one. it is all about keeping the initiative in the lower cost phones. >> i have been using this phone for a while and it is really good. i costs less than $100. what we are excited is the leverage, turnkey solution so that at scale we can bring high-quality, affordable smartphones so that we can get the next one billion people access to these devices and we cannot wait to see the impact this will have.

>> they are talking about the next billion. they unveiled that they have more one billion users on a daily basis. and they've they have already got-- they have already got indian manufacturers lined up to make these phones. it is basically making you an android addict. >> let's turn our attention to some news from the retail technology sector. dixons, warehouse and that merger was cleared by the european commission. now we are getting both companies reporting numbers. >> we are. -- as is really a break big force. they sell everything from back in cleaners to tablets. they have said they have increasing sales by 3%. that is less than estimated. 7.22 billion pounds is how much they sold for the year.

they said it was a year of strong performance. this is the company that has pc world and curry's. underlying profit is up 76%. growth, they have one billion pounds worth of sales. up 16%. they are progressing with in-line with the timetable. let's take a look at carphone warehouse. of overall sales, the total 3.2 8 billion pounds is a little bit shy of estimates. earnings before interest and tax, 151 million pounds in line with forecasts. again, they are managing to drive up their headline pretax profit. many people looking to get onto 4g. we know why these companies are wanting to clump together. a merger of equals, even though dixons has double the amount of sales than carphone warehouse. it's the dominant force of

online retailers such as a.o. they have the likes of e.e. wanting to do their own retailing. this is their tactic, get figure, become a force to have to reckon with. >> we will continue our coverage of the dixons-carphone warehouse merger. find out why dixons may have more to gain from this deal. ♪

companies.oday's ceo says he will not make the bid for shire. his offer is compelling value for shareholders. pros raised money in its ipo. 17.8 million shares for $24 each. it will start trading on the nasdaq. g.m. will fix its top-selling chevrolet cruise. a company spokesman says 33,000 vehicles may have been

potentially faulty. have air bags supplied by jakarta. the carmaker has recalled a record number of vehicles in the u.s. this year. welcome to "countdown." i'm mark barton. >> i am an edwards. fixesne warehouse and proposed merger receive the clearance of have been waiting for from the european commission. does fixes have more to gain from the deal? they just reported earnings. brian roberts joins us now for insight. so let's start with the merger and the logic behind it. since it was first announced, i've seen it go various ways. some people suggest it is an attempt by two businesses that are in danger of being outflanked by other players in their spaces coming together.in a defensive move . other say this is an aggressive move bring together electronics and mobile in a way that harnesses the internet of things. how which are characterized it? >> the latter camp.

there will be some defensive issues. there will be some cost savings. i think there are also some logic in terms of having greater leverage of supplies. i do not mean by forcing prices down. by encouraging supplies to be more collaborative, perhaps even some exclusivity. this strategic point of view. the connected home is big thing. they are driving this in their stores already. effective smartphone already has become the center of the universe for many consumers. that will only continue. be able toou will control your security cameras, central heating, your oven and your refrigerator, all of the stuff from your mobile does speak to the fact that having a great strength and mobile is what carphone brings to the party. having a great strength in the largest household appliances

like it since hats, that will be a great place to be in a few years' time. i buy into that more strategic point of view. >> they could work in the u.s. where the move towards the connected home white be further ahead. there are new entrance coming into the market to provide this suite of connected devices in your house. security or controlling your tv. there are new players coming in. do you think the existing players are trying to get ahead of any new entrants in the u.k. market? >> they are already providing these services. that dixons has to showcase these technologies is a great advantage. getting ahead of the curve in terms of the products is a good idea. what fixes will have in the future is a great in store environment in which to showcase this. consistently increasing levels of customer service. because satisfaction, what dixons needs to do -- and i

think this is a morbid aggressive move -- is beat everything that amazon can't beat which is the ability to touch and feel these products and great customer service. i'm full of admiration for this deal. it is forward thinking. there will be some defensive aspects like cost savings. >> why does dixons have more to gain? the think by and large, benefits that they can accrue from this deal is having the mobile presence of carphone warehouse in their mainstream electronic stores across europe, which brings them authority. i think the ability to use car phone's experience, the in stores, there is not a great deal of flow. carphone can have a lot to learn from what dixons has done. >> why will this work when the carphone warehouse/best buy collaboration did not work?

>> there is a similar degree of logic but there are a lot of operational, strategicproblems with best buy''s entry into europe. what best buy was looking for was car phone's expertise of european retailing. i do not see initially much mention of the world cup. i do not suppose that they are very pleased that england has gone out. saw every time a home team is playing, they saw a pickup in tv sales. >> dixons mentioned there was an uplifted tv sales. many-- they are among retailers that are not happy with his team. >> there will be angry e-mails sent. brian roberts, the director of retail -- the housing market, what does mark carney have up

his sleeve to tackle britain's surging house prices? ♪

>> welcome back to "countdown." >> 7:23 in london. later on this morning, the bank of england's financial policy committee in charge of ensuring stability in the u.k.'s financial sector will deliver its annual report led by mark carney. the findings are expected to

center on the booming housing market. manus cranny is here. so the breakdown. what are we expecting? >> we expect some action but i thought reading into this story, it is worth thinking about the man, mark carney. he is referred to as being the best. a central banker that likes a surprise. five out of his 10 decisions and he was head of the bank of canada went against what economists thought was going to happen. i love what the cheap economist said which is they no the man but they do not know the decisions he makes. could he surprise the market? going into this decision there are couple of important things and i want to show you a lovely stat. mortgage approvals are at the lowest level since 2013. they have been falling for four months. so we're slightly coming off the boil in terms of what is going on in the mortgage market. mortgagelready had the

market review, which is saying, can you afford your mortgage? anna, can you afford yours if it goes up to 4%? it is questioning affordability. 500,000er said, up to pounds we are going to cap it at 4%. it is already beyond boiling point. daddy alexander popped into -- danny alexander popped into bloomberg and said, don't worry. >> i could say that you do see pressures and the housing market in london, but that is one part of a much wider u.k. economy. house prices are in real terms well below where they were in 2007. i think forecast suggests by 2018 they would have reached in real terms the levels of back then. rub of the issue is this -- all around the u.k. house prices are back at level since 2008. london up 14.5%. it is not trying to throw the baby out with the bathwater. it is trying to bring in policy

that is going to cap things in the southeast of england without slaughtering a moderate recovery in the rest of the country because let's be frank. as your house approves in the united kingdom, and we like house ownership, if your house is getting more and higher in value, you seem more confident and you spent. >> what kind of measures, if he does gbring them in, what might they be? income is probably where he is going to go because it is simple. i lend you x times your salary. whenu go to loan to value, mortgages get more than 80% of the value, that is more tricky. although the language i have been reading it will be incremental. it will be later ca -- layer c aked. >> we look forward to the details of that later on this morning. 7:26 in london. >> drinking to victory.

why there is more than just national pride at stake for germany in today's game. ♪

>> welcome back. let's get a check on the fx markets. sterling just below 1.70 against the dollar. the high from june 19. it is not far away. that was 1.7039. we are at 1.69. we are all waited with bated breath for the findings from last week's financial policy committee meeting. will mark carney unveiled measures to slow down the surging u.k. housing markets?

sterling unchanged ahead of the dollar ahead of that announcement later. >> these are the top headlines this hour. the new york attorney general has sued barclays. eric schneiderman accuses the british bank of mr. presenting the safety of its anonymous trading platform known as dark pools. barclays says it is cooperating with the investigation. says thel minister crude export will accelerate next month. it is another sign that violence in the country is not affecting the oil in the south. a report showed next month oil exports from iraq will be close to a record high. and the bank of england's mark carney unveils the financial stability report in a few hours. economist forecast it will unveil new measures to cool the housing market. carney said rising mortgage debt could threaten britain's recovery. now for more on what we can expect from mark carney, let's bring in a chief economist. simon, thank you for joining us.

so you are not expecting much from the fpc, much in the way of change, are you? >> i don't think so. one of the interesting features of our most recent survey, the one before that was not so -- the london market was coming off the boil. i know this is one of the features of the discussion going on. we certainly have noticed that borrowerok at inquiries, they have turned negative. that is a signal that something else is happening in the london markets. it may well be that it is a combination of policies that have been put into effect. that is impacting buyers. or perhaps the psychology for some of the rhetoric from the bank of england. given that we are really seeing some changes in the marketplace, our best guess at the moment is that the bank will set out again what it can do. >> does that send the wrong message? isn't it best to act now? argueone level, you might

that yes. but the bank is not to micromanage the housing market. there is a danger here that we're beginning to say that house price inflation should be x or y. >> the bank does not feel like the banks are managing the mortgage market effectively, then they do they have the ability to step in. >> absolutely. mighta sense, their job be to micromanage if they do not feel like it is being managed well. >> they have to be careful they do not do that, because then you get into a discussion about what is an appropriate. rate of inflation for house prices i'm not sure that is the job for the bank of england. it is clear that the sort of movements in the market we have seen over the last year is something that has caused concern, and we have been concerned by it as well. it does risk the stability of the financial system at some point. we are undermining that. some of the measures that have

-- whether it is the affordability assessment, whether it is the change regarding funding for lending earlier in the year have been important and do appear to be having an impact. is it the right time to build on that or maybe you can make the case for it, and we would suggest that perhaps the bank could be more explicit about those assessments? what rate of interest should banks be stress testing against? or perhaps they could even look at those lti's, they have seen rbs and lloyd's adjust how they behave with loans. perhaps you could be more expensive. >> put it in context. does aferent or similar look, the mortgage market that we had a 2007 before the financial crisis when some people in hindsight were critical of how much the banks were lending and to who and at what affordability criterion? >> if you look at the headline

numbers, whether it is gross or net lending, it is very different. you can see that from the volume of mortgage finance is underpinning the strength of the market. that is probably because the london market is and has been very strong but other parts of the country, only in the 12 months, have begun to emerge from the very protracted downturn. so you have a very distinct trend in the london market which has not been replicated elsewhere. the london market, as we know, has not been driven by mortgage financing. >> targeted measures, is that part of the answer? you target regions with various measures to counter the fact that regions are moving at a -- are moving at a different rate? gothe bank is not keen to down that approach. the reserve bank of new zealand when it was considering introducing value last year, which it did do, it did play around with the idea of regional

adoption of different strategies, but it pulled away. it did not feel it had the administrative capability. i think a bank of england probably does have that ability, but at this stage, it does not -- >> it has been suggested -- as we were discussing with an earlier guest. could that work? >> there are different ways of doing it. toyou make high lti loan income mortgages more expensive because banks have to put more capital aside. given the focus on london, you actually have that, and you can create the same effect without micromanaging by a post code. >> is there anything a bank can or should do to tackle the phenomenon as cash buying? is that materially different? the think the fact that market is so dependent on cash buying as opposed to debt is different.

but the london market, partly because of the international appeal had its share of cash buyers. >> it does not want to scare off international buyers. >> it is a fine balance. that is the issue about whether you build on the measures in place. if a london market is slowing and now we got buyer inquiry numbers turning down for the first time in 18 months -- we season adjust our data. that is not summer. the other interesting aspect is -- what you think will happen in house prices over the next five years? in london two months ago they were telling us they thought prices would go up 9% a year for five years. that has now dropped by half. which is much closer to what you would normally expect. >> you are not at the top of the housing market? >> not going that bold. >> thank you very much. >> 7:37. when germany takes on the u.s. in the world cup, there is more than national pride at stake.

thegerman brewers it is nd flush ofroth adnb beer sales. >> world cup fans are passionate and thursday. they need two assists. they need good summer weather and two they need the national team to go deep into the tournament so that beer garden state open late and everyone drinks when germany scores. countrywide sales have been declining since 1976. fact then the average german drank north of 150 liters. 300 days a year. in 2013 that had fallen to 106 liters a year. an economic incentive to root for the home team. some of germany's biggest may need to work there brewmasters

over time. >> if germany does well, we have reason who report they have sold 100 meters more. >> there is another way to measure beer. water -- the berlin waterworks has its own technical analysis. flushers. waterermany played ghana, use triple during the break and return to the norm after the match. so no late night partying. the game was a draw. hans, the stories you follow in the interest of bringing out -- us up to speed. what is the beer effect? >> for the host country, that is where you see the biggest pop. the number is 1.7%, the increase in beer sales. brazil has expected at 3% increase because people expect their team to go deep.

that is worth another percentage point. 1%germany goes to the final, increases the estimate for some worries -- breweries. not a whole lot but they are struggling and who does not want an excuse to do a package on beer? >> hans, let's have your predictive capabilities on germ any-usa tonight, what is going to be the score? >> 2-2. >> oh, you are so sitting on the fence. for professional reasons. what do you think? >> 1-1. what source? >> 2-1, for the u.s.. >> the germans behind me are not happy. theyuropean chipmakers -- supply semiconductors to apple. i know very little about football. my predictive background is useless. more on that story when "countdown" returns.

♪

>> time for the days company news. close to anis agreement with regulators that would curtail some of its

operations for as long as a year according to a person close to the matter. the banks is seeking to settle claims that it violated u.s. sanctions. talks between the banks and authorities include penalties that may reach $9 billion. et todes-benz -- is s become the world's most expensive sedan. priced at $1 million the model comes with armor plating. the pullman will go on sale next year. we have results from the film studio that makes james bond films. at 64 million pounds. ewood got the greenlight light for a film production and postproduction building. welcome back to "countdown. >> let's take a look at today's top corporate morning. caroline heidi is he-- caroline hyde is here. dialog and ams are merging.

>> these are chipmakers heavily dependent on apple. they've disclosed that ams, the swiss company, say that they are indeed in talks with merger talks with dialog. both stocks called higher. dialog up 4%. ams up 3%. ; dr., their biggest customer is apple. they depend on apple for 80% of their sales. ams depends on it for 23% of their sales. it will be large exposure to one company which is concerning. 4.2 billion swiss francs is what was reported in the fp would be the merger size for this company. they have been talking for several months. still at an early stage. it will be a merger of equals, so says ams. on the supply chain

function, where i'm sure caroline got her details. great function. >> and obviously, this is a hot space in terms of m&a. we have seen a lot going on in the communications space. now we see more happening in the chip area. these companies will get significant amounts -- >> it is not transatlantic. >> it does. no tax and version. not that we know of. >> it woulud list switzerlandin -- it would list in switzerland. the chief executive officer would be named by dialog and the chairman named by ams. >> 2% of its revenues come from robert bosch. 4% from gigaset. i do not know them. i know robert bosch. >> manus cranny is here to tell

us a little bit about what is going on today. >> a bit of retrieve -- rep rieve. i do not know that function. the market should turn around. we are looking for a bounce. european equities head for days on the trot. there was a wonderful line that i read this morning, the s&p 500. that's the core carry through. the u.s. markets ended today higher. they lived through the revision and the gross t domestic product. >> the u.s. gdp revisions for the first quarter is too old. >> capital expenditure. people are buying cars. the yield, the s&p earnings yield is 5.6%. in a bond, if you put the word bonds -- u.s. treasuries -- >> please.

[all talking over each other] >> yield, 2.6%. >> the s&p 500 yield 5.6%. yield.a 2.6% no, i am just saying to you there is momentum there. this may be boring for some people but there is a good reason why you look at equities. i was going to say tony blair goes to be eu. that was in my head. david cameron goes today to the eu. >> he will be glad to leave england. >> and looks like he has lost this yonker. and looks like he has lost this argument about who would be the next president. jobless claims in the united states of america. mark carney. tenure as the head of the bank of canada does things differently. in terms of rates. >> worth remembering. into thedrill down

bank of england ahead of the financial stability reports. it' far from straightforwards. 7:48 in london. ♪

." welcome back to "countdown i am an edwards, sorry. >> big news crossing the terminal. the london stock exchange has proposed by a u.s. company for

$2 billion. indices are widely used in the united states. russel fromk northwestern mutual. 200 is the best known of their indices. stocks.ll cap and that seems to be the logic behind this particular deal. investors will follow the bank of england's financial stability report today. our next guest says that marcon he may need to -- that mark carney may need to track -- we have had m&a galore coming through just this morning. let's start with the fpc, because that seems to be where the focus will be later on in the morning. what i you expecting me fpc to include -- to conclude on the

u.k. housing market? as mark carneynd mentioned last year, different areas of the u.k. are experiencing different levels of growth economically. we're seeing similar things in the housing market. we have seen a report today that showed london housing prices growing by 18.7%. they have got a very difficult job. they have to find a way to call the housing market in london without affecting the recovery elsewhere. it is going to be a lot harder than raising interest rates. >> yeah, what can we realistically expect? we have had one guest that said we could expect some measures. one says the housing market is already cooling. so may be the warning of measures if it shoots ahead of itself is more appropriate. which camp are you in? to we need something solid announced today? >> no. i agree with your earlier guest. we see that the house and market cooling.sing market is

what we'll see is advice to banks that maybe we should look at a cap or on the income of the people buying homes. that will be likely what we see today. may be a cap around four times. at five ordvising six times increment. -- five or six times of income. >> are we going to see trade dictated by the latest from iraq and a continued focused on data out of the u.s. after the disappointing revisions to gdp? or barclays? will be the big themes for you today? alwaysactivity is positive and something that has been a driver for the market so far this year. when we are looking at the markets over the last couple of days, economic driver has not been a driver. we saw strong economic data a

couple days ago and we saw the markets fault off. in the markets rally yesterday. it is difficult to say what investors are focusing on. we do 10 to see a little bit of unusual happenings in the market. the key focus will be the you -- the u.k. >> our market analyst. lsd is to by frank russell. it plans a rights offer. trillion together $5.2 of assets benchmarked to russel. >> plenty to focus on during "on the move." we will keep an eye on the googl e and android everywhere from your living room. google tries to fit its latest software into every corner of your life. we will keep an eye on m&a. ,; dr. companies

have announced that they are in talks. 20 to talk about during "on the move." -- plenty to talk about. >> see you at 6:00 a.m. tomorrow, and i said early. -- nice and early. ♪

>> welcome to "on the move." >> barclays, down two percent. --kins has another had a headache, and it is a lawsuit. the proposition is that they misrepresented the marketing materials and did not protect customers. >> google wants to make you an

android addict. it we would app developers -- it wooed developers around the world. more on theck with developers conference in a bit. a flurry of m&a happening. we are looking at that a little bit later. looking up the correlation between how well it world cup team does, german beer outflows. water all of the indicators so you know which beer stocks to buy. >> the european equity markets just opening up. let's check in with how they are performing. >> equity