we will strike out to our national correspondent -- international correspondent, hans nichols. give us the latest. >> two french police have been shot at at the south of paris. they do not know if there's a connection between the shootings and the shooting here yesterday on the french satirical magazine. the suspect initially fled by sub. he has been apprehended. the french prime minister speaking to french radio and set several individuals are being held in custody. on top of that, the country is on alert and the goal is to prevent another attack and find the 2 suspects who remain at large. >> thank you and will be on top of the story and bring you the latest news. european markets in london opening. the ftse, higher 41 points.

mamnus craccy -- manu cranny has the highest. >> equities market showing relief london is up 1.6 part of ways, you have to go backwards on the map, europe opened stronger. you have to go to the asian session. and it goes to the united states session. they opened up for the first time since 2015. they had five sessions where they wiped out 5% of their trading, the worst start since 2008. that moment passed yesterday. that is vertically important. -- critically important. europe is getting a nice list of

this morning, all predicated that yesterday's story, in terms of argument of not doing something morethe former policy member just finished his conversation with mark anna, on countdown and set inflation at europe could go to zero, 0%. he would vote for a hike and we know he is a hawk and he would vote if he had the opportunity. the individual stock names we are watching. i was going to say -- you mentioned, tesco. i will catch up. tesco up 5% and the market likes what it is here for mr. lewis. christmas trading was better, a lot better than they estimated.

they thought it would drop by a half percentage dropped by 3.5%. 200 people will be impacted to lose their job. $400 million will be saved. marks and spencer, wide-out, drop-off. black friday and fashion dropped by 6% in the week before christmas. i bought a coat. >> a real tale of2 companies. tesco plans to close its head office. it also will not issue a dividend this year. caroline hyde joins us with a

more. plenty of changes in the market likes what it is here. it is up 6%. >> yeah, the trading over christmas and we saw much better than expected, drastic dave to the rescue that is the nickname of the new ceo dave lewis. he does put and changes before christmas which seems to have helped sales and they fell marginally over the christmas trading period, much better than expected. 6000 more customers. we saw u.k. improve, europe post positive sales. asia was a challenge. it was online black friday giving it a boost. tesco says it is helping the stock in an particular.

quarks will do more -- >> will get more from you. let's break it out retail specialist and a chief investment officer at a management company. we'll start with you first. any surprises? has he done more to you expected? >> know, a little has been brought forward like a closing tensions and we expected it, it is just an announcement. it will happen. all of the other things, store closures these are things we have talked about before and expected. >> richard, you've manage the money. as you look at the sector of retail, do you want anything to do with it? >> i think it is a difficult setback and the problem is it is very unstable -- unstable because you get sentiment and a prompt activity among the others and it is rather destructive of margins and we are looking at a

slowing down background. they're all chasing after much slower growth and that is very difficult. it is now focused on delivery and delivering is going to be much harder. >> when they plan to shut unprofitable stores and do not follow up with a headcount reduction, are you surprised the number of jobs that will go? >> there may be a legal reason. you've got to sort of consult with the workforce. it is clear that they talked about rationalization and head office read -- rationalization and annual cost cuts. it is clear people will have to lose their jobs. the company is set for a stable period rather than rapid growth. >> another part of this morning's news we will go to talk talk, part of the tesco's

movie business. thank you for joining us. you are requiring 75,000 broadband users, how much will it help your bottom line? >> we are very excited about acquiring both a group of customers, not only broadband but a voice and 95,000 customers. blue box movies team, one of the leading on-demand providers of paid tv content and the u.k. we are excited about the technology and people and will help us accelerate our tv business. >> what is the strategy here? it is a standalone business and how when you run it? >> we will not be running blinkbox, standalone and is

about integrating with our existing tv platform and activities. so one of the founders and current managing ceos will join the talktalk team. we see the potential to help expelled for -- -- to celebrate. we are different model where we are all about allowing customers to pay for only what they want to watch rather than forcing you to take long-term contracts with lots of premium content and blinkbox has great technology and people. >> do think you have to make job cuts? >> we would not be tanking of as an existing company so we will merge the blank box with talk talk.

>> a big purchase for you and the question is there anything left to buy a can we expect to be busy this year? >> i am certain we are going to be busy as a company and what lots of exciting things to do and it is organic and about offering our customers of our products and services as we go from being a business four years ago that only sold broadband to looking to broadband tv and mobile. and more in the future, i am sure. >> i expect you to be busy and the question is how busy you the acquisition? >> if you look at the broadband market and the u.k., it is very consolidated. we have made 2 small acquisitions in the past few months, virgin media, their national customers. and now, tesco. in all honesty, they're not very

many more independent broadband businesses to look at. what a show use is the strength of both financially and for our customers all the talktalk networks. we are welcoming tesco's broadband customers. you never say no to having more customers join our network to there are not very many large space right now that are independent. >> thank you for joining us this morning. diana ceo of talktalk. richard, i want to get he first. -- get to you first. are you attracted to telecom stocks after the back of that story? >> it is quite interesting. what we are seeing are people trying to reinforce their space in the marketplace, through telecom. in particular, to provide more

content. not so much about networking now, and that work is important but what you can provide interactive content. >> we have to leave it there. a picture of the markets. the ftse 100 this morning, it is higher. the big story is tesco, stock up by as much as 6% this morning but will talk politics and out to paris. stay with us. ♪

>> welcome back to "on the move ." i am jonathan ferro. exit date coming up. friends is looking at -- friends hat -- free -- france with a national day of mourning after the terrorist attack yesterday. give us the latest? >> the speed of which the tragedy is turning into a political conversation very quickly. the leader of the far right movement has tweeted out she wants to call for a national referendum to reinstate the death penalty. here is the latest on the ground with what is happening in terms of the manhunt. the 2 suspects, the brothers, are still at large. 2 police officers in the south of paris were shot.

initially the reports were they fled via the subway and later a rep or it -- and later a report that the suspect has been apprehended and is in custody. at the same time, a cabinet meeting presided over by resident francois hollande is gathering all of the apparatus to apprehend these 2 suspects. separately, the interior minister has said there are legitimate fears there could be more attacks. he was speaking on french radio this morning and in addition overnight authorities said they have apprehended several suspects and they are in custody without specifying who they are. there was report that a total of seven suspects were in custody. the manhunt and what is happening in the south of france, and a tweet, the velocity and the speed of which this is turning into a political

discussion is remarkable. less than 24 hours ago before this average frenchmen street was turned into an avenue of terror it had accelerated both here in paris and across europe as everyone starts to asking themselves important questions about the role of free speech in society. >> hans nichols. let's bring in richard jeffrey chief executive officer. richard le pen mentioned center of the ramifications, the far right party. are you expecting political fallout? >> you are bound to get political reaction from an event like this. a reminder in the west we are not immune from events elsewhere in the middle east and elsewhere in it is also a reminder that global economy is him, politics their intertwined and part of the same aim.

we are talking -- same thing. -- we're talk about markets and that is one focus on society and what we think about at the moment is the interaction between what is going on elsewhere and impact it could have a western economies. >> just very quickly, the u.k. employment situation, the fundamentals of the country's, wealth lost sight of what it is because in the bond market, no prices. i look at europe in no significant worker needs to be done on the economy? >> investors are concerned about growth prospects and that's why yields are so low. bond markets, pretty much the same thing. what the world is trying to get to grips to, governments, markets around the world is the implication of a much lower growth environment. that means less income flowing into developing and emerging markets and causes problems.

>> richard jefferson went to work for joining us. after the break, the company reported results this morning. will speak to the finance director. up 3.5%. ♪

>> welcome back to "on the move ." hays rose 7% in the second

quarter and they plan to triple their stock in china. stocks are up on the back of these numbers. hays' finance director. the press release came through and i went through it quickly. no sign of a slowdown in europe what is going on? >> in france we had a record performance the best would've ever done in our business is up 14%. we do not need much gdp growth in europe, just ability. at the moment, europe feels as it is recovering. first time, it helps improve our business and our european growth was up 9%. spain, 18%. switzerland, 18%, fairly uniform. >> the performs in france, is a reflection of how well your company is performing or the

fridge economy not as bad as some people are saying? >> i think is in a difficult space with outperform the market in france and there are two or three reasons for 12 launched -- 43 reasons. -- we have launched programs and that is beneficial. we have a reasonable base across the whole of france. >> i want to talk about australia as well and good love concern about the australian economy. you have consumed -- and a lot of concern about the australian economy. what is going on? >> we were there for so we were covered first. the last few years in australia have been tough in uniform growth,, like everywhere else the tactical area first. spending more on i.t. and construction of property and engineering to recruit markets.

>> we talked about some of the profit goals at your company before and updated guidance of this morning. where are we? can you overachieve? >> the good news it is a good first six weeks. get the consensus level. if you remember, we are trying to double the profitability. this is year 2 and markets at 166 and happy with that. we have no -- 21 countries out of 33 has grown by more than 10%. not like we are dependent on two or three countries. >> no visibility i know, i know. that target is there. clearly, some visibility. >> the serious point there is -- to get to that, where is the global economy going to go? the u.k. recovery continues and it feels like it is. where does your go next?

the big positive for us is asia. we have a good growth. and australia. >> i want to bring it to u.k. one of the reasons i love having you on, you were the first executives to close on the show years ago. you were there for say you were copper first for your coffers and you saw it. -- you were there first and you are covered first, and you saw that. >> 14% for us it is great. next corner, perhaps 10% and that would make sense. -- next quarter, perhaps 10% and that would make sense. perhaps a little bit less hirn g. and the question on the election is we have no question what it will be. we could see businesses just a bit of hiatus, that will not

stop our growth. >> i do not want to politicize the elections for you, but i will give it a go. when you look at the revenue from the public sector is there a preference for the outcome? >> no you just want preference. there will be gradual reduction. the rhetoric is all there. most of the reductions will be gradual. as people retire, not replacing them. it is getting more -- the quicker the elections come, the better and let's hope we get a result one way or the other. i am bullish about the u.k. for the next 2-3 years. >> very quickly, wage growth, a big topic from the bank of england. every time i talk to you, we see solid waste growth. >> i am very confident it will be up 2%-3% per i probably would

say 3% or more, across-the-board is there. and selected papers for top performers in that maybe 10%. we see that. a reflection of the salaries that people are hiring at. a reflection of what the market thinks of that number. paul venables finance director at hays. a picture of the market. ftse 100 is climbing higher, led by tesco. they are coming out with a series of things, cutting dividends cutting spending for the next year or so. some live pictures of paris. the prime minister speaking about the tragic events of yesterday. we will bring you news as it develops and leave you with

these pictures. ♪

>> welcome back to "on the move." i am jonathan ferro. 30 minutes into the trading today. how about markets are shaping up. the ftse 100 up a by a few points. did we misinterpret the fed and we'll talk later about that principle stock movers. tesco. i concede anyway. >> good morning. let's talk about some of the stocks on the move. tesco is one we have to watch. it is helping the market. we have an update for the drastic savings over at tesco. the ceo with store closures and

they are selling assets. blinkbox is being sold. they are showing their head off ice and reforming their supermarket program. plenty for investors to digest. on the policy side, christmas sell period, it looks like the vessels they made are starting to bear fruit. you can see the stock is higher and all of this at the end of a dreadful year for tesco last year with warnings after the accounting scandal. another retailer marks and spencer, never so much attention has fallen on it. it is the village and the east midland of england and happens to be the location of the marks & spencer' distribution center

and where they had logistical issues and fulfilling orders and we go back to black friday and into christmas. they had trouble with the distribution center and their store sales for general merchandise, that was down by 5.8% in the 13 weeks. and standard chartered is down. they are closing the equities business planning to cut 2000 more stocks. they are rolling back some of the big expansion plans they took since the financial crisis. >> anna, thank you. they youngest suspect in the attack on the french magazine charlie hebdo, has surrendered. 2 are on the loose. there's report of another shooting in paris police said it is too early to link the 2. dave lewis set out his plan for

the struggling supermarket tesco. possible disposals worth billions of pounds for that report christmas sells that the estimates and announced price cuts. the federal reserve has confirmed it will not hike rates before april. minutes from the meeting, while they see the u.s. economy strengthening, inflation may linger below is goal and concerns about the price of oil. joining us now to talk about the fed for 2015 head of asset strategy, stephen. the fed minutes, caveat after caveat. the big one is inflation. dovish interpreted -- interpretation, what stood out for you?

>> 2 points. i don not think they have a view of when they will hike rates and when they respond to data. our interpretation, my interpretation, they will look through inflation. if you are a central banker, you are watching inflation. as the key point is slack continues to come out of the economy and unemployment falls. rooms to drive you will probably get a hike. >> that is probably a lot of people watching the show right now. the comment on core inflation and they could hike court where it is right now, would that be a policy error? >> i do not think it is. the key point is unemployment following an coming down faster and faster than they

anticipated. we look at the next reading on friday and our review is if falls again to 5.7%. our forecast by the end of the year is 5.2%. that suggests slack is coming up god the economy and a key indicator that inflation will pick up. it is the right decision. if i was a central banker i need to look at what impact it will have on inflation going forward. >> the fx effect dollar strength, anything else? >> absolutely. it has been going very well. annelise the second half of 2014, less successful in the first half. the key is the dollar goes up of what we need to focus on is against what? it goes up against the low yield are's, countries doing qe. francs. let's against the aussie dollar

best currencies to play dollars to rent. >> dollars/yen. let's talk about sterling. a lot of people cannot make up their mind about this one. i had a guest from hsbc yesterday. here we are wrong the 150 mark. -- here we are at the 150 mark. what will push a higher? >> a tricky one. euro/sterling has fallen and co ntinues to fall. i think there are a lot of similarities between the usa u.k. and get back to the scenario of low inflation. flat out of the economy, unemployment falling, in the bank of england needing to look into the crystal ball to see what what happened. from that perspective, we do not write off a rate hike in 2015 for the bank of england. >> decision day today, not

expect any changes. 2014 to 2016, can you follow this? >> the point i would highlight is the market is going to fast pushing the first rate hike too early. again if you have unemployment continued to fall, we are calling for 5.4% at the end of the year, i think that means they need to start sooner than believed. we would not be surprised to say august that the bank of england hikes rates. there is a trait -- trade there and i'll sterling at my favorite is against the euro. >> not ready about how does not worried about politics -- not worried about politics? >> a lot of volatility. >> steven saywell.

he stays with us and we'll talk about the euro and germany and greece and the merkel coalition. more on that after the break. we are back in 2. ♪

>> welcome back to "on the move." chancellor merkel's coalition, lawmakers within, is willing to

discuss debt relief with the newest rolling partners. it is a change at the administration which is taking at hardliner on austerity. let's get out to berlin and we are joined by tony. how much wiggle room is there going to be? i saw the headlights yesterday, give me more color. >> i think what we have to look at is what is not on the table and what does not on the table according to the lawmakers we have talked to is a haircut. a real write-off of greek debt which is what alexis, the leader of the anti-austerity alliance in greece wants. what the german lawmakers we have talked to are saying and this is significantly includes privately lawmakers from chancellor merkel's democrats is

of course, as soon as the new government is in place in athens, of whatever stripe, we will have to talk to them. and if there is a possibility of discussing an easing of the repayment terms that is already gone out. >> it is really difficult to understand where the german administration stance on these things. we have a report from bloomberg news yesterday and then the article over the weekend that somehow germany would accept a greek exit. what is the back story here? >> well, what ever the spiegel story was, what it has shown is greece is still very fragile. you saw bond yields spike of this week and they reached a 15 month high.

clearly there are jitters. if you listen to chancellor merkel, who is in charge and we followed her for a long time here in germany around the peak of the debt crisis, she says i want to greece to stay in the euro. of course, they have to keep observing the conditions that came with the bailout, which means austerity and economic reform. merkel's ultimate goal as she has said and most recently yesterday in london is that greece should stay in the euro and the eurozone should stay whole. that is her goal. >> thank you for joining us. fantastic work with your team. still with us is steven saywell. the bottom line nobody wants to see greece leave really, do they?

>> no, the point we would make is highly unlikely we will see greece leave, it is no way interest to see greece leave especially greece. we do not believe samaras wants to take resell. just like 2012, it is grandstanding and germany versus greece. the germans want the greeks to be more responsible and the greeks do not want to feel as if they are being strangled. >> and said it is not in their interest, but you reject a financial engineering, surely rearranging the deck. that is -- rearranging the debt. -- that's not going to make much difference isn't? >> greece needs to make reforms. the most likely outcome is a lot

of inflation. from greece's perspective, yes 80's to a lot but it is better with euro's support. -- and they needed to do a lot but it is better with euro support. >> unemployment around 25%. two different worlds. one central bank that needs on january 22 and what does the ecb do about it? >> the german economy is much bigger. our view is that yesterday, negative inflation reading is not so much fundamentally but politically but allows mr. draghi to build the core. we are calling for qe and surprise it did not happen in december. if you look at rocky and the space, -- draghi in the space he needs to build support. it was a shot that needs to

convince the rest of the ecb. >> he used the word legality and he said it was not be legal. they are way below their inflation target. >> if they come out with qe, you tell me what is the number they need to throw out of their? 500 billion, the target that's not going to disappoint? >> remember, they made a very clear goal of getting a balance sheet back to previous levels around 3 trillion euro. they need to be quite a bit. the japanese have been very successful at this. they keep going above market expectations. that is a challenge that ecb needs to be allowed. >> big results. you can have a debate about what it has done for the economy. the euro/dollar 118. why exit?

>> we put it at 125. that is a profit. very significant for our view it is really a dollar move. what we are doing is rotating dollar and with had nice success. we are on dollar/yen and we think that is the one to go for now. we are not saying euro/dollar has not paused. >> steven saywell. we haven't talked about the greek direct to your. the real threat from a collapse of eastern europe. -- we have talked about the greek threat to europe. ♪

>> welcome to on the move. i am jonathan ferro. europe is underestimating the threat posed by russia from the billionaire, the legend reims -- samaras. he says western leaders are mishandling. let's bring in ryan chilcote. a message from mr. soros the west is mishandling the situation quite clearly. >> exactly what mr. soros is thinking is not handling right is a follow through and he thinks it is no follow through. he gets high marks for the sanctions against russia but

that it needs to be followed up by with real financial aid. russia got $70 billion worth of financial aid from the imf pledge last year. but soros says ukraine needs $50 billion in new pledges in the first quarter of this year. ukrainians have to be in berlin today and they're looking for more money and they did just get $500 million loan. we asked what the country needs. >> where in a critical financial situation from external payment system but also a balance of payments situation and our national bank reserves. there are many different estimates as to what the amount and what will be talking about in the coming weeks. we are looking to all of our international partners from the imf to the world bank, united

states, canada, japan, and others to come and support us during this difficult time. >> napoli j -- natalie jaresko's american accent issues born and bred in chicago. she is highly regarded in the ukrainian president gave her citizenship so she be the finance minister, a job she has been in for a couple of weeks. a set of anybody camp or this off, she can. the odds are against her. a country if it does not get help will default and there's no question on is that if they do not get the financial assistance they need. the currency is down 60% and has led to a huge economic crisis. it is the worst-performing economy in europe. you take a look at bond yields. they got the bonds going for $.60 on the dollar. the second worst-performing bond

and in the world after venezuela. they need help and quickly. >> ryan chilcote, thank you. that is eastern europe and would've to get back to the core of your and the issue in paris. we are following the fast-moving story following the shooting yesterday. hans nichols, give me the latest. any updates? >> well, we are following up 2 stories and we are not sure and police have not that if a are related. a shooting in the south of paris this morning and 2 police officers were shot. the suspect is in custody. separately, the manhunt for the 2 brothers and that continues. we do not have any updates on where they are for the manhunt. the sus that, a third suspect, turned himself in. -- the third suspect turned

himself in. we have a normal for thestreet behind us in 24 hours ago it was turned into a crime scene and officials scrambling for a response. on the political front, we have the leader of the far right party calling in a tweet for a referendum on reinstating the death penalty in france. the speed of which even as the manhunt and the criminal aspect is ongoing and authorities are working to prevent another attack, the speed of which it is turned the political conversation is remarkable. that conversation will likely continue all day and throughout the coming weeks and months as europe grapples with the question of how to integrate, assimilate, and move forward with meaningful conversations about the role of islam in society without slavery to the fears of anti-islamic and islamic phobia. >> thank you very much. "the pulse" this coming up.

it is one of the top stories for you. >> it is the top story. hans laid out the type of conversation that needs to be had. look at the broader implication of this from society point of view, economic point of view and try to integrate all of that. how is this going to reflect the political conversation in europe? you see why this happened in germany over the past few weeks. the suite is an send your very -- tweet is incendiary, talk about the death penalty. we'll take a look at what it means for your. -- europe. it is too much to call it a 9/11 moment and you look at the united states and how it affects the policy not on that scale but it will change the story. >> we look at the ramifications,

[indiscernible] this tragic event could get some more support. it's breezy europe closer together -- it brings europe posted together. it is bringing people together. >> that's evidence of the last 24 hours. you need to go back to the economic story and the lower- middle-income limits of society at the moment. you cannot exclude the 2, not mutually exclusive, and that will be one of the critical debates. the economy, how to integrate minorities and the french parties, part of the same story. this is part of the story. it is going to have a meaningful impact. >> caroline has arrived at the deck and shooting site -- has arrived at the second shooting site and she will join guy.

equities are up. gains by tesco. if you want to continue the conversation, i am twitter. good luck for the rest of your day. ♪

>> a massive manhunt underway in paris. french authorities continue to search for the two main suspects in yesterday's shooting. prime minister manuel valls says preventing another attack is the main concern. another shooting this morning, two police officers said to have been shot in southern paris. the authorities are refusing to link the two incidents. in corporate news tesco has been taking action. the troubled grocery store names a new boss and says it won't pay a final dividend this year. this takes a more aggressive line on pricing.