rex the economy is weathering the downturn in the housing market. >> what chance a tesco turnaround? the new ceo up aids the market this morning. market this

morning. welcome to "countdown." it is 6:00 a.m. in london. let's get those numbers from credit suisse. in the beating estimates third quarter. that is the take away here. coming in better than estimated. that is more than doubling against the previous year. more trading taking place. no surprise that is a theme. they have seen a mixed start to october and advising everyone to look through their capital ratios. 9.8 percent at the end of the first quarter. activity benefiting from increasing volatility. notember is a feature among october. we will have to see how that turns out. the five top u.s. banks and

their combined revenues were up two bloombergng intelligence. critics will it last? structural is a problem, not cyclical. credit swiss has visibility. i am talking about litigation visibility. last week morgan stanley released a report saying barclays, ubs, risk is ahead of them. ubs was 3.1 billion and credit swiss 1 billion and barclays $10.2 billion in provisions. that is the estimate. better visibility.

>> they are being investigated along with many other banks around manipulation of foreign exchange rates. credits was saying themselves the investigation has not revealed anything material about credit suisse. we will have to see where that goes. perhaps better in terms of that litigation story. -- manus cranny interviews the ceo. pmi isa's october flash coming in. is growth stabilizing in china? call itld not stabilizing. since the pmi came in, a little higher than what economists were expecting. it indicates we have some momentum going to the fourth quarter. the is a very early number,

first indicator we have going to the fourth quarter. the flash number is based on 90% of the complete pmi survey. this should be a close reading. the economy does some omentum and we had higher than expected gdp numbers. the slowest growth china has seen since the height of the financial crisis. this is another sign that s hasted easing measure helped. landingears for a hard and reduces the chances the government will push through any broad stimulus measures. they have been avoiding cutting bank reserve requirements. >> thanks for joining us.

>> llos banking group is planning to cut 9000 jobs according to a person familiar. the job cuts are part of the three year strategy to become more focused on online banking. us up to speed. >> this is one trend, the people going to online to do their banking as opposed to their actual inc. branch. lloyds is hoping. they have 80,000 employees now since the 2000 and eight bailout. they laid off 38,000 workers. this would be 9000, roughly 10%. that is not a lot compared to the 37 they have laid off at this is not an insignificant number. this would be the biggest calling in three years.

>> how many branches are there and how many will there be in 10 years or so? country of 43 million. you have 8000 branches, 2000 are lloyd's. the british bankers association said over the next decade the 8000 total could go to 2000. the reason is branch visits are falling by 10% a year. >> one was the last time he went into a bank branch? >> it has been a year probably. >> i cannot even remember. >> this week. >> i went in the week before to find a machine that accepts large amounts of clients. >> am i confessing too much? >> you are a coin collector. you what the trend

is. to validate have your identity if you doing big transaction or remove something from an account but you do not need a branch write down your street for that. >> wherever we look in parts of the u.k. life, we are saying adjustment to online. home retail group's were scaling back because people are buying more online and we hear about job cuts in the banking sector because they are doing it more online. often canthe branches be ghastly places. they are not welcoming. i will not name my bank but when i go there i feel like it is like a bus depot. abbeys started to do that.

not say my bank but it is welcoming, especially the one in the city close to the bloomberg building. it is very new millennium high-tech. >> and metro banking selling themselves on the idea of customer service so there are different models out there. >> and you can take your dog. join us on twitter. get in touch with us. >> and do you tell your clients at the bank? bank.ns at the get forensic with those figures from china. ♪

>> time for today's company news. owners oftors warned

some models not to sit in passenger seats because of defective airbags. toyota issued the same morning. the u.s. national traffic highway safety administration millions of cars are potentially affected. and criticized in a new report. following an investigation into to buyop of plans lloyd's branches. cites them for not uncovering the shortfall. they denied it was at fault saying it provided robust audits of co-op. breaking members from nokia. the company's third-quarter net sales beat estimates. the net sales came in at 3.3 billion euros. figure, 747income

million euros which was the thet net profit since fourth quarter of 2012. nokiaould suggest that has turned the corner. nokia is a different beast than what it was six or seven months ago. >> the company ceo saying the company is moving in the right direction. the productbout nokia has. this is a product that is designed to talk -- cap into that. and the adjusted margin was 13.5%. it says for the year the adjusted operating margin for division which accounts for 90% of sales will

be slightly above 11%. all figures looking for an improvement. plenty of data to digest. the latest flash pmi survey from hsbc's shows chinese menu fracturing expanded more than expected. we will get data on how european manufacturing fared this month from the latest pmi figures released in the region. jp earlier this week which beat estimates. exportation has been strong. we it all out for us. >> it is thusly soft data but not as soft as people were forecasting. the trend is still slowing. probably the right way to do it. the economy is losing momentum. probably continues to do so for several years as it normalizes go-go years and

with excessive investment. the reality that they are going theirthe growth rate of consumption of from materials and things that their export partner sell to them. >> targeted stimulus by the government, that will be the future path. >> things soften out the landing so it is not too bumpy. 's a large pillow to land on. >> yeah. a frenzied airbag that works. >> these were the notes, the sort of notes i like. noteean pmi down a bit, rose, no recession. u.s. jobless claims, yawn.

let's start with the pmi's. much to shout about. >> and going back to august with mario draghi speech at jackson hole. if we do not find something to do working together between fiscal and monetary policy, some form of asset purchases by the central bank, some help from governments in that regard, then growth will accelerate on its own. that is not how it works. the dangers it will slow at some point. you get the sense that everyone would be happy if growth trundled along. happy is the wrong word. people are slowly giving up. you can look at consensus growth forecasts. we are not picking up. >> talk about finding something to do, ibo familiar suggesting

the ecb is buying covered bonds corporateering buying debt. what will the next move be? >> the best thing we can see is they will do whatever it takes. there is nothing that is not on the table as far as mario draghi is concerned. he would buy corporate debt in a flash and if he wants to buy the isunt of debt, the trouble it is hard to see how you buy enough to make a difference. you can buy anything you can buy and wait for the few that you can have and then see what you can get through. whether any of it works for the economy at this point in terms of boosting lending to small and medium-size businesses is a moot

point. anchors short-term interest rates and drags the currency lower. currency, we have hit a low for the time being, why and what will push it lower? >> we have the big move down on the back of everything ecb did and helped by rising short-term interest rates. they have been raised quite sharp going -- sharply. the fed is looking much more squeamish. >> are you feeling squeamish? marketsnervous because have been volatile but more because the fed looks so skittish so quickly. i do not think that we will get the same economic reaction from this piece of market volatility. 10 year yields rose

and emerging markets got hit hard. there was a terrible winter. the market got hit hard in growth slowed. the proof will come from the u.s. economic data. i would have thought the economy is still on target. >> the tapering ends next week. it is psychological at this stage. the market having seen market volatility needs to be reassured that we are not that important and the real economy will survive. >> more thoughts about the u.s. economy. us. with 19 minutes past six on this thursday morning. ♪

>> welcome back. london 6:22 a.m. let's talk briefly about the holocene review. the highlight of your weekend or many peoples's weekend. it will be released on sunday. has this been holding back bank lending and do see some resurgence in it as this is over, what to do to your world? >> we talked about which banks

need capital. it is a help in that sense. it clears the deck. does it make banks more excited about lending? no. i do not think it automatically changes anything very much. interest -- enterprises interested in borrowing or borrowing on terms that the banks are willing to offer, even less obvious. there is more to do and that is why the ecb is pushing on the idea of trying to get some private assets out of the banking system. the banks have a whole they need to replenish but they need help from government and fiscal policy. >> bank of england minutes were interesting. interest figures. have you changed your assessment of when we will get the first rate hike in the last few weeks? >> the window of opportunity of raising rates the size of the

election has probably closed. rise beforepect a the election. this is the challenge in the has -- the economy >> when we get the latest gdp rate tomorrow. faste chances of a giveaway ahead of the budget very limited. fiscal -- austerity is guaranteed. but it be raising rates looks like the housing market is not moving quite as fast as it was. a later rise and a lower peak in rates is looking likely. >> one of the issues surrounding growthk of wage crews -- is the government does not have

wages to tax to the extent it planned. that is the biggest headache in terms of trying to balance the books. >> yes. quite a lot of people were taken .ut of paying taxes you have got fewer people paying taxes and they are not -- the earnings are not going up with inflation so that is a problem. a problem necessarily easy to solve. it looks as if halfway through the fiscal year we will have a big mess on the budget deficit. and a lot of catching up to do with spending cuts or higher taxes depending on how it plays out. it is not terribly cheerful. tradingollar index was higher. it has come down a bit. has the rally finished or not? >> we did have the longest run of consecutive higher weeks in

the dollar index ever. some kind of a pause to anyone who drew lines would have made sense. the fallback really killed it. as long as the fed raises interest rates next year and i think they will. we are in a all two-year uptrend. it will not going on -- go on at that pace created probably does not get going again until we see employment data at the beginning of november. >> have you been selling oil currencies? >> we talked about china earlier. oil has come down quite a lot and that catches lots of headlines. russia and canada, brazil, a different story with the election. it is the wider rebalancing of between commodity producers and consumers. first hike

[indiscernible] >> i will go fed. they are both getting pushed back at the same time. >> thank you. >> more daimler earnings. we will break down the numbers. ♪

>> welcome back. we had some inflation data out of new zealand today. inflation in the third quarter fell more than economists forecast and the central bank forecast as well. that gives the governor of the central bank of new zealand graham whaler a bit more scope to keep borrowing costs unchanged for longer consequences. i thought it would show you what happened to the new zealand dollar in 4014.

since july and has been creeping lower against the u.s. dollar. when new zealand dollar is 78 point five four cents. inflation in new zealand signaling that whaler, the central bank governor, can keep the official cash rate unchanged. he did raise rates four times between march and july. there is an 80% chance of the benchmark interest rate being .nchanged or lower keep an eye on the new zealand dollar area >> these are the bloomberg top stories area the canadian prime minister mark harper said his nation will not be intimidated by the terrorist attack in ottawa. a gunman was killed inside parliament. he says canada will redouble its efforts to combat terrorism. >> in the days to come, we will learn more about the terrorists

and any accomplices emfs -- he may have had. the events are grim reminder that canada is not immune to the types of terrorist attacks we have seen elsewhere. a new poll shows he has the backing of 43% of voters in his southeast district. high.ns are running a traditional ceremony to honor the prime minister, he tried to pour cold water on his ambitions. he said one can succeed in life without becoming president. level uptling record ruvell ratings. >> it is 6:32 a.m.

dime is the third-largest maker of luxury vehicles. analysts estimated two point five $6 billion. earnings have beat estimates and beaten estimates on the net income level. 1.84.billion versus an increase in the company still .ees significant growth this is a company that is adding luxurious versions of the c class. and bolstering its high-end image. it is expanding its lineup of more affordable models. utility vehicle.

it is trying to topple bmw in the luxury car segment by the end of the decade. that is the news from daimler. still seeing a significant rise in 2014. >> sticking with cars, the mercedes unit has seen deliveries rise in the first few months of 2014. that outpaced anything its rivals could achieve. hans nichols joins us from berlin. >> when we look at these numbers we see a company that is awash in cash. they had gotten rid of their and they got 780 million out of that shared sale. this is a company that has a lot of money to invest. they want to get the operating margins down so you have profit have 210% and the

billion operating costs shaved off. it goes on sale in the states this month. starting. the that is their flagship as they want to go for luxury. it is an exciting moment in the auto industry especially in asia when you look at what mercedes is doing. they expect sales, you get a sense of how fast they are growing. they expect sales to increase from 250,000 to 300,000 this year. we're talking double-digit growth and it is all about this race on who is going to be number one. " position, it is bmw. last month to mercedes outsold audi and the m w. wey are in third place as get toward the end of the year but some of their models are coming online in china. they have new models in the states.

this is their small car. to go and -- do car car sharing in brooklyn. >> $1 million. definitely. >> thank you. >> tesco's new chief executive will update the markets in 24 minutes. dave lewis has a lot on his to do list. appearing the damage from overstating profits. be unveiling delayed first-half results. caroline is here. what is the key, there are so many things we need to know but what is the number one thing? >> it will be an outline of what is the damage and will it be as much as a quarter billion pounds as initially feared. many think it will not be quite that big. they have been reduced in terms

of their market share. down more than nerdy last year. the immediate crisis has been overstating a profit. many analysts [inaudible] stewart and eight staff have left amid this investigation that has been going on. outlinese preliminary of what their internal investigation will show. get a size of the total size of the lot. all eight staff remain gone? this has not been something that has been going on year after year. this has been a few staff trying to meet sales targets.

of is this that everyone has an opinion about. what kind of medicine are we going to see introduced. what is being suggested? >> pretty's rent -- pretty huge. , 3s the c put out a report billion pounds is how much they need to invest. this is no >> -- quick fix. tesco need significant reengineering. if you're getting anywhere close ces need to asda, pri be cut. and quality needs to be improved. how do you find that? they could cut a billion pounds

by cutting staff. a lot of talk about their corporate jets they need -- they feel need to be gone. cells -- have to share shares?re -- sell more what is interesting is what other players are saying. all the big four, all these guys, they have the state of how people used to shop. how do you conduct yourself for this new era? we have to have more stores and

better quality and better service. what is interest -- interesting is many analysts are saying this is going to be hard. >> many are saying do not get too overexcited. , we aretanley is saying expecting a bit too much. the investigation will amount the amount -- limit the amount of income. they're saying give us an affordable plan. many are feeling this is your one chance to clear the decks. you do not need to be that profitable. get the service right, become a growth company. >> thank you. despite weaker data from the u.s. on -- our next guest is confident the world's biggest

economy will power forward. stay with us. ♪

>> carlos slim.

we are taking on quite a big giant there. we are used to taking on giants. is being bid david versus the geoeye a. goliath. their entry into the mexican market. lights will outline the job losses when it releases third-quarter results. there will be more branch closures. it will -- it has eliminated more than 37,000 jobs since its bailout in 2008. and speeding up shipments of cocoa because of the ebola outbreak. if ebola hits the ivory coast it could lead to a standstill.

nestlé operates in ivory coast, ghana, and nigeria and it is restricting employee travel. more financial regulation is not consistent with growth according ordea bank.of nm his comments come ahead of the results of the ecb stress test which may result in regulatory changes designed to shore up the banks of europe. >> lower-than-expected data from the united states. very good morning to you. thanks for joining us. >> good morning. stat ofin the award for the day. this is a big award. in your notes, it says this is

the 14th greater than 5% selloff in the s&p since the rally began in 2009. there have been 210% selloffs. what you do go on to say is this one is different. this is a different selloff. what is different about it? the 10%most got into territory with this selloff. the global equities phil by short of 10% this time around. is it does notnt come up with any clear catalysts. it was not a big catalyst that you normally get. that was not really there. we think it was investors getting a little bit worried about some of the data and then technical pressures.

the casehat tell us for equities remains intact. >> we think it does. you have got weaker data coming out of the eurozone and out of asia. when you look at the u.s. which is the bulk of global equity markets, that is an economy which is still growing relatively strongly. we do not think the weakness in the rest of the world is enough to bring the u.s. down. shares, 75% of. their earnings are arrived domestically. strong. economy is still and the data is good. enough tos that close down on the do things remain

on course and first rate hikes for the middle of next year? >> we think they will slow down just a little bit. they are mainly focused on the labor market situation and on inflation more so than financial stability. will note the lot >> stillht weakness looking for rate hikes. they will be cautious. they will keep monitoring what financial markets are doing but we do not think this changes the picture too much. >> how will this play out in emerging markets? if they reduce tapering and

maybe go on to raise rates sometime in the middle of next year. how is that going to effect emerging-market assets, will we see a play out that we saw in january this year and last year? not good for emerging markets. use saw the previous instances in january and last year. and -- emerging markets will likely suffer if we see on deals going up and the dollar getting stronger. it is a mixed picture from the classic expression that was describing some of these big economies in these emerging markets that could suffer. they are not quite all the same anymore. places like india has -- have a lot to reform. calls that stood out is the decline in oil prices is likely overdone. the 20 or so declines we have

seen, you think we pretty much hit the low for the time being? is interesting with oil that it seems to decline more than anyone had estimated. we would have thought people like opec would have cut production by now given that the anyprices are below where of these countries could break even in terms of their budgets. we have seen a bigger then usual expected decline. increasing production outside of opec. we do expect to see them cutting production to stabilize prices. >> why does everyone tell us to buy high-yield debt, yields are 1% below -- above their record lows of the june levels, the have risen one percentage point since then. sayingkeep coming on and get into high-yield credit.

are not the highest they have ever been. it comes back to the strength of the u.s. economy. what you are getting is you are buying risky credit in the u.s. which is supported by an economy that is doing well. even if it is starting to tighten policy, it is still relatively loose. you are eating banks loosening. it is hard to see how these companies will start defaulting. if you can get 4.5% more, we think that is a risk worth taking. >> it has been great to chat to you. >> a former banker's son wins big. we will discuss that and more in our newspaper segment.

>> welcome back. it is 6:54 a.m. on toill pass on -- that

the hairdresser. act's cleaned up. i have seen him perform live. he has had number one albums. he won the category for mail, best song, best r&b soul. took her previous to court. she took them to the high court because she felt she was fired unduly. for investing too much time in her son's career. that was when he was 16 and now he is 22. clean up.id he is big in the u.s.

it is all about the spirit of black music and anyone can be inspired. >> he is very sweet. he loved everyone at his table. -- this is the scandal surrounding the inconsistency. the tournament listed not available to the public. rex ronaldo went to liverpool and scored a goal. the conversation on twitter. tell us what you think and the

stories you want to hear about. want to hear more. >> tesco of course. >> after the break. ♪

>> tesco's new ceo of dates the markets. zürich with the

chief executive. >> and job losses and branch .lose it -- closures are on credit suisse said its third-quarter profit more than doubled. manus cranny has been speaking to the bank's ceo. hard on makinged sure we get a good balance between the businesses continuing to grow our private wealth management business. well for clients and provides good return. this was a good quarter for us. the markets were a little bit uneven area that shows it is a pretty good performance. the important thing is to continue that performance. >> we will have more from that interview in just a few minutes. >> just after 7 a.m. and we are

awaiting numbers from tesco and all sorts of announcements. let's talk about tesco. >> we are expecting a first half trading profit of 853 billion pounds. the u.k. margin is said to be 2% and we are expecting like for like sales to be down 6%. interim results are just raking. we get a feel for where exactly the whole is in terms of overstating their profit. tradingoking at group profit. 937 million pounds beating analyst estimates. they're coming in slightly better. the dividend has been cut by 75%. that was announced in august to

1.16 p. are expecting a selloff of asian assets. >> this was one of the forerunners of the reward scheme. they have interests all over the place. part of the review ceo's desire to create destinations for people. >> 263 million pounds more than had been estimated. >> it is a figure. 118 relates to first half

trading profit. 75 million related to pre-2013 or 14. >> we have got the number and they have gone back over the previous years. for analysts going into this that we get that kind of clarity. >> they want to know how significant, how systemic this problem was. was this a few members overstating profit coming in from their suppliers or was this an auditing problem? the impact is 118. not as bad as expected. a lot of issues for investors

and analysts to grapple with. are you pleased that like for like sales or not is bad. >> let's talk about the management of the company. they are under a new ceo. the chairman has been in the job all the way through. we are hearing the chairman is starting a succession process. >> i will begin to prepare the ground to ensure an orderly process. the decision reflects the principle of accountability on behalf of the board. many felt the chair should

bear the brunt of the responsibility. a succession.for but our business is operating in challenging times, he said. market value.g market share is down. we do have challenges from a position of market and strength and i have been heartened by the teams welcome and their determination to stay focused. he is trying to sound positive. saysong the highlights he the new executive team is in place. he wonders how much will we hear about some of these plans. to relaunch tesco. very much.u

we will have more on that as we go through the morning. let's return to credit suisse. profits more than doubled. >> great to have you with us. a splendid set of numbers. you could not have asked for anything better. what do you say to people that say this is a vindication. weathlance between ib and management, i have got it right. running an investment bank that is capital efficient and that works well for returns. this is a good quarter for us. the markets were little bit uneven during the quarter.

that shows it is a pretty good performance. thing is tot continue that performance quarter after quarter. inthat will be difficult terms of the balance. you have regulation and capital constraint. are we going to see more of a push toward ib or are you looking to rebuild wealth management. that is what the market is clamoring for. consistentbeen very about our strategy. we want to run a disciplined allocation. we think we have a great investment bank. the growth is going to be on the high bid wealth banking management side. we continued to make progress. >> i have to ask you how do you what youersations, have a conversation with morris, part of acquisition that strategy? >> i will not comment on the various rumors that are out

there. we think that organic growth looks great. there are lots of opportunities to grow organically. we have close to 9 billion. it shows that we have a lot of good organic growth. bealso think that there will smaller consolidation opportunities and that is what we're focused on. that is a good way to grow the business. we continue to see tremendous asset growth area that will be our primary focus. we will look at things as they come along. particularly smaller things. goingot of people are think in this it is back. what does it mean for you and for the ib? give me your view on that volatility. >> a benefit some of our businesses as you mentioned saying. seeing more volume and volatility.

that is clearly a benefit. if you get too much volatility s people'st longer-term view and confidence. what we saw in the last few weeks is a sharp down and a sharp rebound. we will see how things go forward. clearly having some additional volatility does benefit some parts of the business but we want to see a good consistent market over time to make sure that people retain their confidence to be opportunistic about doing things. >> at tracking by the fed, by the bank of england, when do you see normalization, you must look at the interest rates and go it is an incredibly important part of the is this. what do you make of it? >> we have different parts of the world and different modes in terms of growth and perspective growth. we are going to continue to have a very uneven global environment for some time.

you mentioned the different countries. we have different paths from here. i think we do believe that over time, we will continue to see growth in the markets and i do think that over time we will see some normalization and interest rates. the view is that that is looking like a fairly distant her rise in. >> you have been around a while. >> it is hard to tell. the last few weeks is a bit of an overreaction. we do continue to be pretty constructive about what we see about the economic backdrop. that will filter through. we are probably, it was a bit of an overreaction. we will see. >> the new regime, the new regulation and requirement, when you look at these markets you go, regulations are crippling in terms of my ability to carry

inventory and participate in these markets. should we be worried about liquidity? is it a big consideration? >> there is less a quill -- liquidity. the sellbeen driven by side having to rein in some of the positioning, some of the capital they have at work in these businesses. there are a lot of technological improvements providing venues for liquidity. we are seeing continued increases in different trading venues that do provide liquidity which is positive. i do think that what you see is even though liquidity and specific mark -- markets is impacted, the fact that a lot of the banking industry is not carrying as large an inventory and provides benefits in terms of less follow till the and -- and p&l. there is pluses and minuses to

it. there is less liquidity in the markets then there was and that is a natural outcome of the measures that have taken. >> speaking to manus cranny. let's talk to unilever. reporting numbers this morning. these are underlying sales growth numbers. that was against an estimate of 3.9%. that turns out to be the weakest result. if you look at the volume, that is below estimates. that is the worst result in almost three years. below estimate numbers coming through from unilever. confidence for the year, they will achieve profitable growth. and they dolowed

not see a material improvement in the market. when you look at the macro environment they say that is something that has been weighing on consumer demand. they say they see early improvement signs in north america. those numbers in terms of the underlying sales growth, the result -- worst results in almost five years. >> we have had lots of comments. the first half profit estimate was overstated. they will begin to prepare the ground to ensure orderly progress. there have been similar accounting practices in prior reporting times as well. that is very important so the transition phase continues. his way. has a lot on

he probably will be operating chairman sooner rather than later. >> many priorities for the company. one of them is to strengthen their balance sheet. does that mean that a rights issue is coming? >> whether it is asset sales, they will be criticized as the weeks go on. >> tell us what you think about tesco. company where they want to buy a 50%. tell us abouto and give your opinion on today. stay with us. tesco next. ♪

next time what are reported an increase in third-quarter profit. profitmaker's operating rose to 2.7 9 billion. is payingy ostrich he

off. lloyds banking group will announce 9000 job cuts next week according to a person with knowledge. on tuesday.tline there will be branch closures as more customers shift to online banking. nestlé said it is speeding up shipments of cocoa from african countries because of the ebola outbreak. the chief executive said if ebola hits the ivory coast that could lead to a standstill [indiscernible] they are restricting employee travel to the region. tesco. chat about the chairman is repairing to step down. we will have a guest. joining us next.

♪ >> welcome back.

the big headline is around the chairman. he is preparing to step down. the company disclosed its first-half profit estimate was overstated by more than initially feared. >> that is the treated as a

one-off item. the ceo says no one has gained financially from that overstatement. in terms of the strategy we do not have a great deal of detail. more, joining us with some reaction. was do you make of what heard this morning? >> i do not think anything came as much of a surprise. the structurals shift. and the fact that they are overreliance on nonfood products and they will have to reconfigure themselves in order to adapt. >> why is tesco more expense -- exposed to these trends than some of the other big supermarket chains? these largebuilding out-of-town superstores which are losing relevance.

choppers are looking to buy. they picked up during the recession. we are happy to go to the discounters and grab a bargain. that is the challenge. they were a brand that used to stand for value but you can get more value at the discounters. you want good quality, you go to him and asked. they're stuck in the middle and there is a lot of choice for shoppers, grocery shoppers in particular. >> we have a lot of decisions. he tried to make it more appealing to go to one of these out-of-town shops.

is this something a company needs to stick with? >> they are still opening these stores. that is the crucial thing. you need to give shoppers a reason to make the trip. this is great experimentation. initially we saw sales up between 2% to 5%. thatuestion is is sustained and the answer is no. you cannot change the fact that shoppers are looking to buy and they are not visiting the stores. -- thisf analysts

will -- what will make tesco recover? >> i do not agree that they should go nuclear. as some analysts have suggested. they need clarity. are recognizing the simplicity of the discount offer. you know what you will get. it is consistent. tesco pricing is still too volatile. the prices fluctuate too much. there is a broader move in the sector to simplify. down to well but it is consistency for them. >> and the news that the chairman is leaving.

this has been talked about in the media a great deal. does that feel like a sensible move? >> absolutely. it was inevitable. the accounting scandal happened after his watch and tesco needs fresh perspective. hopefully they will get this under a new ceo. and -- will heis draw a line on the sand? can he -- or do we need more from him first question mark we need to hear his grand plan. we need to hear his grand plan. tesco is very much stuck between a rock and a hard place. they're not going to start closing the stores. equally they are well positioned in terms of online and convenience.

>> 7:26 a.m. a good day quarter 4s. where live in zürich with more. ♪

>> welcome back. let's have a look at the foreign exchange markets. let's have a look at the currency. getting a boost from the oil industry. we have seen that taking its toll on the current see.

hitting a five-year low. would see no change, they expect to see another 4%. recovery of the canadian economy has been broadly driven by the oil sector. most of the business investment has come from alberta. things are looking a lot weaker for canada over the summer months. this was a trend away from commodity currencies.

>> these are the bloomberg top stories. minister said his nation will not be intimidated. the gunman was killed inside parliament. canada will redouble its efforts to combat terrorism. >> in the days to come we will learn more about the terrorist and any accomplices he might has had -- he might have had. canada is not immune to the types of terrorist attacks we have seen elsewhere around the world. a new comrade -- poll has shown they have the backing of 42% of voters in the rochester constituency.

tensions are running high in france. francois hollande right to pour cold water on the ambitions. one can succeed in life without becoming president. he is battling record low approval ratings and levels of unemployment. reported profit that more than doubled. joining us now from zero. >> this was the ceo. very focused.

investment banking has contributed well. the future and this is part of the debate on how you value credit suisse. he did not -- he said he was not [indiscernible] that was the road to go. focusing on the cost and wealth management, making hay to a certain extent. if you have a product that makes squeeze it until it squeaks. you are making money. it is doing quite nicely. you not push it away. even the may be structurally investment bank probably has changed. muchdo not carry inventory. they have shaken up.

[indiscernible] >> what did he have to say about the turmoil? >> this was a very interesting perspective. volatility is good and volumes go up. was howion to him concerned are you about liquidity. that is the conversation we have had with many people. interesting. take a listen. >> it in a fit some of our business as you have seen. this is good for some of the trading businesses. from some points of view that is clearly a benefit. with too much volatility that impact markets. sharpe saw was a pretty up-and-down.

having some volatility does benefit. we want to see a good consistent market over time. >> volatility is your friend in certain respects but it is your fear in terms of the long-term part of the business. is being pulled back. it is a risk but there are other sources of food quantity. not looking toward the banks but looking and i got the feeling he holes andg about dark other sources of liquidity. volatility is not a bad thing. they need a more consistent view.

my twitter go to account and get the answer. self-promotion. >> we do not have to do the shameless self-promotion. we will hear from him later. thehe cuts are part of three strategy to focus on online banking. peavy that will save the banks a can. certainly that is something that is happening at lloyd's.

cuts, lloyd'sb has 88,000 employees now. they have cut 30,000. they have committed to more than that already. another 10% on top of that. whatis nothing compared to barclays had. the biggest for them, one in 10 employees and the biggest calling in years. are 8000ther there bank branches in the u.k. according to the british bank bankers association. lloyd's has somewhere between 2000 and 2200. over the next decade you could see the number go from 8000 to

2000 as we see this trend. if you look at the footfall it rate.ling at a 10% a year this is a nuanced story. what they're saying is a drop off of calls into their call centers by about 25%. let's not forget you have to ask the question why haven't they got rid of these branches yet? that was a condition, they are not allowed to get rid of any of the ranches. expires and they can begin to do that. there is 25% and when people start talking about cutting branches you're talking about the sensitive issue of cutting branches in rural areas. not too keen to see. basically what they are suggesting is what you're going to see is they drop off in the

number of people answering the phone at the call centers to match the drop you have seen in the volume. less branches, yes. a lot less people in them. that is a trend we have seen in many of our branches anyway. time youas the last went into a branch? >> every year ago. you do.d us what >> i spent every weekend going to the bank. >> and your piggy bank. do you put it in a machine? >> you can find those machines and banks. if you do them in the supermarket they charge you. >> you have to go and where they have those plastic bags. >> you will learn they also make good point counters. >> thank you very much.

>> we will talk to the company chairman. that is next. stay with us. ♪

>> time for today's our chart.

this one is especially for anna. i am looking at the price of cocoa. look at the price in the last 12 months. $3113.ng yesterday that is a lot when you compare indexthe humbert monti which is down 7%. global stocks 1% lower. up i 28%. 2% in september. concerns that the ebola outbreak would disrupt shipments. there is the fact that you will love. reach ais year will

record $17.75 billion according a market researcher. as demand grows companies like hershey are raising prices. cocoa accounts for 14 to 15% of what it costs to make chocolate. well the rally in cocoa last if analysts say probably it will not have a significant impact on supply. according to the industry body icc. fell in the third quarter and the second quarter as well. higher prices do not seem to be deterring consumers.

demand for cocoa growth was at 5%. >> in terms of cocoa i clearly need to eat more chocolate. >> let's move on. >> there is a vision for 3-d technology. tell us about the results you reported. >> there is a very strong dynamic.

have sustainable double-digit growth. what is happening is diversification is working. we created a new brand. that is a lyrical sector going forward. the potential to use 3-d modeling for personalized health is very high. >> is that the secret to growth be easilyuld achieved.

connecting sophisticated objects together. 3-d is part of our daily lives. to see andnly a way understand things but it is a way to imaging new sustainable imaging. principally you operate in japan. you are -- are those your biggest revenue generators? of the your assessment global economy when so many seem to be concerned about it right now? >> we are positioned to be the the pipeline in new industry sectors.

new energy systems group we are there. there are thousands to be produced in the next coming years. this is where the system is playing. >> give us an example. of a project you are working on. >> we are number one in the world. about that. there are a lot of project like this going on right now. of diversification innovation to go to a new sustainable world is happening

as we speak. it is not related to volume predictions. >> can i ask you about the climate for french business the frenchhave seen economy sluggish and we have seen it being criticized by people at the eu level and i germans and u.k.. what is the climate like for french businesses? of our is -- the less revenue is coming from france. and asia -- that is being said. the conditions are what they are in france. disappointedlearly about reform speed.

i hope they will be adopted quickly. aside of that this is the global world. -- he said i love business and they both tried to outdo each other when it comes to loving business. are you feeling the love? those statements will be translated into actions. you are looking at a live shot at the city of london. equities are opening lower. break, what is driving today's trade. stay with us.

♪

>> welcome mat. foxton is a big property broker.

market is expected to be constrained for some time. john has joined us on set what is coming up? foxton'suidance from unilever. the worst corley sales growth since 2009. the big beat at credit suisse. futures are lower in london. tesco, what a mess. where do you start? >> there was some better

trading. >> they're coming out of the woodwork. we will leave you in john's hands "on the move." ♪

>> welcome to "on the move." i am jon ferro in london. minutes away from the start of european trading. a very busy 60 minutes ahead. 260 3 million pounds is the number, that is how much tesco overstated profits. the company said this will affect second-half results. the chairman is on his way out. a big beat for credit suisse. profit more than doubled. we will be live from zurich where we sat down with the ceo. china beat expectations.

hsbc's manufacturing data in the second largest economy comes in better than expected. the focus now shifts to europe. german manufacturing data is due out. french data is dropping in 10 seconds. by 33s are indeed lower points here in london. on the dax, 0.44%. look at unilever, big mess. market doesn't like it. futures down across the board. >> we are starting to see that fear about the economy hitting the companies. we are digging into all of that. we have chinese manufacturing picking up slightly, better than expected. it for october at 50.4. that was better than expected for china. the labor market helping offset that slowdown in the housing market. what about europe, the u.s.? we have french numbers breaking now. d