>> putin pressured. moscow is asked to respond to claims a russian missile down flight mh 17. weapons.upply illega the ultimate goal of russia is to not have on the map. boost his looks to bid. 21st century fox may use the cash from the sky italian a and skied deutsche sale to increase

time warner. we're live in zurich for an exclusive interview with the chief executive. boris collardi. a warm welcome to the second hour of countdown. lots to watch this morning. let's start with him in a. >> will we see -- start with him in a. >> we have earnings coming out on friday. euros is whaton it is for sky deutschland. also sky italian. all of this money going to 21st

century fox for its bid in time warner. the m&a is really front and center in terms of communication and media. >> we are getting news out of tesco. leaving dave lewis is succeeding him. saying the current trading conditions are more challenging. the biggest of the u.k. groceries and has had some tough times. there seems to be some heavy competition. -- he wasuld still stacking shelves at the age of 17. he is tesco through and through. so much pressure since he was chief executive. where do you go from a 30%

market share? the united states is a particular problem for tesco's. saw the chief financial officer leave as well. clearly a business that desperately needs to show it is changing. they are bringing in new blood. >> they are trading somewhat below. i caught up with them about a year ago. so much fanfare on the tech side of things. he hasn't been able to turn the business around in the way many thought he could. we have seen stock prices down around 14% in the last year. a lot of pressure and he eventually stepped down. >> when you have the combination of discount retailers and then companies under pressure to try to turn their business around, the temptation to get into a

price war is there. it has been talked about by many on the management side of retail. trading profit somewhat below. away from the corporate land scape. howre keeping and i on markets open up in various parts of the world, aren't we? intottle change looking equities markets. they stabilize again. one thing that has been choppy has been the equity market. people called this wrong. one of them was jpmorgan. have got thise market wrong. it just goes to show how choppy it is. >> world leaders say they are almost certain russia supplied separatists with the weaponry

that shot down a mate 17. call for ever tightening sanctions on moscow. are reports that bodies and some of the wreckage have been moved from the crash site -- by some ofhe the separatists. we began by asking if the crash might mark a turning point in ukraine's war. >> this is not our war. that is the huge difference. we are very clear saying, look at what happens in the world. g-8 members, a permanent member .f the united security counsel who sent the

troops to crimea. it was russia who grabbed the land and independent country. it is russia who still supplies terrorists.he it is russia who finances them. >> do you think this will be a turning point in this conflict? is not the war between just ukraine and russia. againsta crime humanity. realize we need to stop this mess. first i want to convey deep whoolences to the families lost their beloved. tragedy this is not the conflict.

this is a worldwide problem that needs to be fixed and resolve. >> what do you think about the idea of a cease-fire? >> we already had it 15 days ago. . ukrainianuccessful military stopped firing. day.s shoot every what needs to be done? russia must stop providing weapons. russia must stop financial support of these rebels. russian president is to condemn .hese terrorists together with ukrainian and russian forces we are ready to

invite anyone from the international community. to de-escalate the situation. >> is it fair to say you think maybe now is the time to take the fight to the separatists? not a cease-fire but to go on the offensive? >> it's fair to say now it is to stop toor russia support terrorists. if they stop the support and implication of this will be a very simple but affect of one. defective one. they will stop shooting. they won't have shells, bullets, and missile systems. >> plenty of corporate news. tesco.wis will join

that is the u.k. news covered. for more on the swiss bank we go in zurich.nus cranny boris colined by lardi. he's of the younger generation. et's have a conversation. i have looked through the numbers. new fund, good, tick, but you are also doing another deal. tell me about the shape of it. you are avoiding litigation. >> i think business momentum is strong right now. we are coming to the end of transactions. we are ready. willways said when things

be back on track. this is what is likely to happen in switzerland. banks are ending the settlement. several will have to think about what is next. this is on the back of a specific cooperation agreement that allows us to pick up ourerent capabilities into focus market. it was an opportunity to good to pass. we can shape away where our liability would remain with the parent company. template of what is to come. >> let's talk about the merrill lynch business. one of the biggest conversations i have had his execution has been tough. you said we helped bring in 60

billion swiss francs by the time it is done. .here is still a tough marriage the margins are suffering. one will that turn around? >> i think frankly it is going better than we anticipated. i cannot think of better words. we have people on both sides that have come together and are working very well in almost perfect harmony. others are coming from a historically different background. >> a harmony the between a broker and a private banker is something i find in congress. system wasthe broker more pronounced in the u.s. i think the step to the swiss market is actually relatively

small. we disclosed for the first half of this year that the bankers are already at 84 basis points. we are running ahead of productivity. the other number we disclosed is they are winning again. i think in terms of pure withoutvity we are franchise. >> when are we going to see you make more of a concrete investment on shore? in that area? the plans?ething in >> globally the plan is to go on shore. we are that in europe. we are now present in several new markets in spain, in

holland, in other markets in europe. we have converted our 30% stake into an 80% stake in brazil to enter the market on shore. forill be looking opportunities to go on shore. the big elephant in the room is china. that through our partnership with china. i think the market is quite huge for a small institution like ours. >> let's talk about russia. what is your exposure to russia and the wealth of russia? >> we have the typical business, dominated in some of the key cities in europe. london, or geneva or the south of france. it is in direct exposure. >> as you react a little more , is there a risk

of taking on new business? >> i think what i hear from the russian business is a bit on hold. russians are waiting to orerstand what direction one the other sanction could be going. there is a number of activity that could be going on domestically with the offshore understanding who is the best equitynd putting ownership back into russia. >> in terms of markets we are keen to know what ceos have to say. says there are dangerous markets. it is covered in fairy dust.

what is your view? overquity markets confident? what is your take? >> i think it depends on the perspective you are looking at. if you look at the number of indicators you could say we are getting slowly into dangerous territories. if i look at an indication of how much cash they are sitting on, they still have plenty of cash. there is still money that could enter the market on the back of renewed confidence. more good news to come. classic. the if they are not turning the key in their portfolios with you, where are they looking for new money? when they sit down with you where is the alternative view? i think they look at all

different geographies. interestingly india has been picking up in terms of geography. japan could have a second wave programh as we see the is working. have emerging markets back into core markets back into some core markets. >> we are going to have to leave it there. it's great to have this conversation with you. that's it from zurich. we have got a busy couple days. for the margin they are on target to deliver on the merrill lynch margin. >> a fascinating interview. angst to you and things to boris c -- thanks to you and thanks to boris collardi.

the tesco chief executive steps down we look at what his departure means for the world's third-largest supermarket chain.

>> welcome back to countdown. let's return to the breaking news.

tesco has the departure of its chief executive phil clark. he was at the helm reinvent half years. he is going to leave on october 3 to be replaced by dave lewis. he himself 28 years at unilever. see what is it about this new guy's career that they are highlighting? it is all to do with turnaround. he is talking about the how they have international consumer experience. they talk about how he has experience in change management. they are trying to paint a picture of someone with fresh perspective who is going to make angst happen in a different way. >> he was one of the front runners. that momentum has been building to this. he has stepped down. is a beast.

it's not even a third of what tesco delivers. he might have experienced turnaround. this is a huge takeover. negotiated, getting his own goods. clearly he knows quite a lot about the business. we are getting another profit warning. resultsot expecting until october. they are saying it is more challenging than they expected. more challenging than they thought. a lot of questions to ask. i was looking back at the total returns. ourselves of the tall order since he took over. it's not a small task.

that man was running the business for 14 years. at 12.6%.and stock look so great. when you compare it to his peers he held his own. he was having a tough time. >> it will be interesting how the stock market reacts. tesco's. for at theosborne speaking u.k. interview. the u.k. government could consider further sanctions on russia. that's going to be a developing story. we are also looking at what happened in israel as well. >> both of those stories later in the program. our dog looks to boost his bid. 20th century fox may use the

stock -- murdoch looks to boost his bid. ♪

>> welcome back. just coming up i am joined by anna edwards and caroline hyde. caroline, rupert murdoch, time warner, a massive aid.

could it go even higher? he is not going to walk away. >> he is not going to walk away. understand.we it could go even higher. we are expecting another bid to come. he has really started gathering force in terms of cash. interesting game of musical chairs going on, and he could be cashing in on sky deutsche and sky italian. they are close to offering what could be $10 billion for a 50% stake. this would make the european player more powerful when developing content. it gives more cash to up its bid. up to get itso hands on time warner. it's all about production. foxs going for 21st century

>>you're going for content. caroline, thank you. a moment of silence in moscow for the victims of mh 17. we will have more on that when we return.

>> welcome back to countdown. it's time to get a quick look at the fx market. one dollar 73. this is going to be a busy week for this trade. we have u.s. inflation data due. janet yellen, are you listening? she called it just noise. doesn't mean she is going to act? probably not. on the sterling side of things,

on the pound, incredibly busy. bank of england wednesday morning. any clue to how close we are. you might get it from the man himself. man has got toat say. >> thank you, top headlines. u.s. president barack obama is pushing european allies to expand sanctions even if it means damaging their own economies. eu ministers meet tomorrow, and tougher sanctions could be to theed. bloomberg talk ukrainian prime minister about the downing of the plane. he called for a global response. problemis a worldwide

that needs to be fixed and resolved. insecurity council is expressing serious concern over the fighting in gaza. the palestinian toll rose past 500 after two weeks of fighting. military suffered the deadliest day in weeks. >> you cannot reward terrorism. a set ofnot be preconditions demand that are going to be met. we support the egyptian initiative to have an immediate cease-fire, and we are working that cease-fire very hard. >> that was u.s. secretary of state john kerry. he is a busy man. he is traveling to cairo to promote a cease-fire. elliott gotkine is live in tel aviv. ?hat is the latest

>> quite a lot of developments. now according to the german newswire and the associated press. the death toll now exceeds 500 in the gaza strip. this is over almost two weeks of fighting. spotted two terror squads just north of gaza. one was hit by israeli airstrikes. al jazeera is saying there are some israeli casualties but no word on the israelis. this comes after the bloodiest day in the current round of fighting. 87 people killed yesterday. 60 of those in one particular area. this is an area the israelis say was used to store rockets and to fire a large number of rockets

at israel. that is why there was so much intense bombardment. it seemed there were a lot of palestinian children and thousands forced to flee their homes. of talk.e heard a lot so far they have not backed it up. havehis presence in egypt any effect on what is going on? >> he was shuttling back and forth. now look at where we are right now. presence shows the seriousness the u.s. is now taking the current situation. israel. position is that has the right to concern itself, but we are getting increasing concerns about the rising number of civilian casualties. byre is a similar sentiment

the united nations. they express concerns about rising human casualties. the egyptians didn't seem to be able to do anything. be inchingpefully closer to some sort of cease-fire. is the word. a delicate situation. inc. you so much. >> in the past 10 minutes george osborne has said the u.k. could consider further sanctions on russia. for more the chairman of emerging capital joins us. thank you for coming to talk to us. are you factoring in further sanctions from europe? do you think europe will go further this week? >> i doubt it. i think it's going to be a step-by-step situation. there will be a lot of talk. there is a lot at stake between

germany and russia. of talk.l be a lot >> a number of european leaders are talking about putting economic interest a step back. is that type of message going to guide this week or you don't think so? economicis too much separation between russia and the rest of europe. i think it's going to have to be handled with care. the truth is we are crossing go downe where if we there with more serious sanctions -- russia can do without that. it's not very helpful to russia's economy. ofdoes need a lot international capital. >> if you look at the situation in the middle east, which when concerns you most? -- issia and the ukraine

think more the middle east situation. i think there are broader implications with the develop of isis, etc. it is worrying me a lot in terms of what the implications could be. this could have a major impact on oil prices. i think russia and ukraine is probably more local, but the middle east situation is likely to get out of hand. >> how are you playing that? are you exiting certain holdings you have? how do you take that conviction you hold? what assets >> we managed in the emerging and frontier markets. it's not like we have hedge funds where we can hedge things and raise more cash. that is an indication of where to go. this is not the time to pile up equities. equities have done so well in

the last 18 months. it is probably a good time to take some money off the table. >> ryan joins us as well. you have just come back from the ukraine. >> i want to ask what do you think the prospects are? the u.s. has a way of getting ahead of europeans to nudge them away. they are really talking seriously now. it seems it would be difficult to not go forward with sanctions. >> true, which is why i am saying we may cross that line. if that happens it is a problem for russia in general. >> what are we talking in terms of figures and numbers? are we going to see a 10% fall ?n growth in russia >> i doubt it. they are floating at about zero percent growth, so they are not going to be growing. capital flows.t

they have been bleeding capital over the last few years. you are not going to get fresh capital in. you are not going to see much growth for a couple of years. >> you hold russian equities. >> we do. we literally have the russian position over the last several months. to be someonetime at the table. there are good companies in russia. >> investors are willing to look at the individual companies as opposed to hunting russian stocks across the board? in my view that is the way to go. you're going to have exposure in russia it is going to have to be consumer oriented and privately .un ?> some things you like >> retail space and tech center.

those are companies you want to have exposure to. gas is cheap. it could get cheaper. >> markets have sort of stabilized. does that pattern continue? >> it's going to be choppy. if we have more sanctions we have more noise. maybe i am not the best speaker when it comes to noise. we take long-term views. you can get trader it. markets are you looking at? >> we diversify. a bit in china, a bit in brazil. a bit in turkey. i believe the frontier space is the place to be in the next five or 10 years. not that the emerging market story is over. >> we were talking to phillips and the ceo said the slowdown in china they were preparing for a

slower market over the next few quarters. wobble ineen that your chinese investment? >> not really. they will keep printing whatever number. seven percent, six percent is still a + on a much eager base. africa is a very interesting spot to look at for investment or this is. -- purposes. >> thank you for joining us. we just got a bit of breaking news on malaysia airlines. this is the company and for months that had to disasters. him 817 was shot down by russian separatists. toy say they are going

predict a turnaround. auction -- options include going private or bankruptcy. many have been canceling their tickets. they are feeling very much they want to be shying away from flying malaysian air. just a tragic circumstance. all members whether it be crew or passengers. people from the u.k. and inmany, notable lives lost malaysia as well. this is a company in crisis mode having to discuss going private or recovering from bankruptcy. >> big news out of tesco. the top of the world's grocery group.

details next. ♪

>> welcome back to countdown. it is 7:45 in london. ryan chilcote was one of the few journalists who spoke to the

ukrainian prime minister following the crash of mh17. he began by asking what needs to be done before crash investigators can start to work. >> we provide a safe corridor. we will do everything needed. in order to investigate this international crime and to unfold all evidences related to this international crime. >> there has been a lot of confusion about the location of the black boxes. where are they? >> there were a number of rumors. are on the ground tried to find out whether they were on the crash site or whether they were moved to russia. statementtists made a that they decided to move the black boxes to russia, which is

a violation of international law. all these black boxes are still at the crash site. >> how sure are you everyone is going to be convinced by the evidence you have been gathering that it was pro-russian rebels that brought down this plane russia.p from >> we are to talk about the whole thing and evidence. controlled byy the russian led guerrillas. systemond is the missile plan to air is russian-made.

same missiles the system. ande disclosed and unfolded were ready to present to thernational community location of every single ukrainian missile system. no ukrainian missile system in these areas. we never use it during the counterterrorism operation. this.s. already confirmed plane was shot down by the missile. together with the international community we needed to define location.and precise the fifth issue, probably russians don't know there is an , but a lot the world

of footage is already on the internet. video of this in russiantem moving led terrorist areas. in a few hours moving back to russia. we need to confirm everything. a lot of evidences are on the table. >> some big corporate news from esco in the u.k. the ceo will be stepping down. moment shares the are lower. what a lot dave lewis will have on his plate if and when he does

step up october 1. for three and a half years phil clark was chief executive of the biggest etailer in the u.k. profit was on the downturn. he was unable to turn the juggernaut around. it was a bit of a poisoned chalice he took over with a company that has been invested in. suddenly they are trying to make cuts to the slow erosion. waitrose. is this is a company that needs a lot of changing. rather than going with previous tipped to take the job. they know they want a fresh pair of eyes, a fresh perspective. knows it very

well. broadband is echoing those comments right now. >> it is interesting that it was just june that they were suggesting they need to give .hil clark more time he got more time. it wasn't very long. let's remind ourselves what a tough time they have been having. sales were down. he described it as the worst he has seen in 40 years. he started stacking shelves. he is through and through a tesco guy. he did have to follow in the lee.teps of sir terry one and a quarter million pounds is what lewis is going to be earning. he is getting half a million and they love the bonus he probably

won't be taking. this is a man who is going to need incentivize him. he has $63 billion worth of sales. this is a big role for him. >> it would be interesting to see how the stocks open up. right now you are looking at live pictures of the city of london. you are looking at ftse futures indicating a slightly higher open. grey london.ed i will be back into. -- in two. ♪

>> just five minutes away from the market open. in the u.k. it is a very busy week. we're looking at growth over three percent year on year for the quarter. bank of england minutes that is where you get the color of where banks are going to go. >> we are watching tesco. changing of the guard. the new chief executive after three and a half years as chief executive. 40 years at the company and is going to be leaving. investors more worried about the sales. theeopolitics clearly

background for all of this. toy are meeting tomorrow discuss possibly whether there will be further sanctions on russia. all of that a topic of conversation. will see you again tomorrow. . .

>> good morning, everybody. welcome. you are watching "on the move." i am guy johnson. moments away from the start of the european trading session. futures are pointing higher. we are brushing off the geopolitical tensions from ukraine, the middle east. let's talk about all of these stories. now, ryan me chilcote, elliott gotkine, caroline hyde. >> russian business is staring into the abyss this week. the u.k., germany, netherlands warning of more sanctions. i have the latest on malaysian air flight 17 and the outrage. cairo.y to

due in the egyptian capital to broker a cease-fire. the death toll now stands at more than 500 palestinians and 20 israelis killed in almost two weeks of fighting. >> thank you. chief executive phil clark is stepping down after four decades at tesco. he leaves a company struggling to battle the discounters. more on the trials and tribulations of tesco and the hopes for a new leader, dave lewis. back to you. >> thank you very much indeed. openingby the initial onry in europe, a vol spike friday, seems to come back down and li b