mark: flash crash arrests. the u.k. trader accused of white big $1 trillion from u.s. stocks in 2010. he is due to appepear at and extradition. we are live where they'll -- where he manipulated the market. we break down the numbers. times at tesco. the uk's biggest grocer could face 4 billion pounds of losses. we bring you details in what

could be the worst year in tesco's history. yanis varoufakis says greece and its creditors are narrowing their differences. a european official says the deadline for the reform to unlock funds is now in june. welcome to "countdown." coming up, the concoction that could make you invincible. a former executive says the key behind brain function is butter in your coffee. that story later on the. futures trader out of a suburban house has been arrested in london and charged in the u.s. with 22 criminal counts relating to the 2010 flash crash, which went $1 trillion from the u.s. market on may 6, 2010.

he is due to appear for an extradition hearing at westminster magistrate. we are outside his house in hounslow, good morning. what do we know about this man? ryan: we are learning quite a bit. he lived in this neighborhood, it would appear, with his family in west london just beneath the flight path to london's heathrow airport. he was presumably arrested around 12:30 yesterday. what we know is that a large number of people in the neighborhood here have entered this home yesterday afternoon. he has been accused of contributing to that may 6, 2010 flash crash. we saw a total of 1000 points wiped off the s&p 500.

$1 trillion in value of u.s. stocks. prosecutors when they announce this criminal complaint which was filed back in february, says that he was operating out of his home here alone, and on that one day on may 6 2010, he profited $900,000. they say that his illegal activity began long before that. in 2009, and it continued through 2014, over which they say he netted a total of $40 million in illegal profits. he will get his day in court. he is going to appear in a london court at an extradition hearing later today. we have not heard anything from the defendant yet. mark: what exactly was he doing? ryan: well, the prosecutors say

he was doing something called spoofing and layering. they say that is an illegal trading strategy, whereby a traitor places a trade with no intention of ever actually filling it with the goal of pushing the prices on the market in the direction that is beneficial to his trading strategy. in other words, he chooses a price that is just a few takes off the best asking price, and other never gets filled or he himself, cancels that. he does that with large volumes and throughout the day. what the prosecutors in the united states are say it is that it creates market imbalance, and it was market imbalance that was the decisive factor in that crash.

it only lasted for several minutes, but nonetheless. mark: ryan, thank you. we will have more from you later. getting some breaking news from volvo. this is the truck maker, not the carmaker. the swedish truck maker. details of a new chief executive. he has been named as president and chief executive officer of volvo group. he will be assuming the position in october. he has been the chief executive of all those big rival since september 2012. there will be an acting chief executive until he assumes his possession.

it comes today as the truck maker announces first-quarter results. it has an operating income of 7 million swedish krona. 74.8 billion, ended it intake -- it's order intake increased. the big news from volvo the truck maker, not the carmaker, is that the current ceo will become -- good news out of japan. the country's trade balance has swung to its first surplus in 2012. with more on the full story, good morning. tell us more. >> good morning. for the first time in three years, japan has posted its first monthly trade surplus.

it has been a day deficit in the wake of the tsunami several years ago. that was largely due to the fact that japan, with its nuclear plans, had to import lng and crude oil. crude oil has surged in prices but for now they continue to turn lower. that had a significant impact on this latest finance ministry saying that preliminary data is showing at 14.5% drop. the trade balance as we said, is now in surplus. however, the forecast is that it will not last that long. it may switch back to deficit in april. mark: we will come back to you later. apologies for the audio. dublin has had an undeniably terrible year.

dramatic changes by the incoming chief executive to cut costs, to stem the loss of market share. dave lewis is closing stores and the company's pension scheme, not to mention slashing prices. what can we expect? caroline is here to explain. caroline: they want a moment of clarity -- that is what the shareholders want. a want to get underneath the skin of tesco's balance sheet. we know it has been a terrible year. when you look at what the numbers will be in terms of where your trading, a collapse in trading profit. we are expecting it to fall by half expecting sales to fall. pricing pressures sweeps through the supermarket in the united kingdom. clarity, hope for clarity, when it comes to write down, when it comes to potentially 5 billion

pounds worth of write-downs. this will largely be based on property right down. persons, one of their competitors -- we could see 5 billion pounds in terms of impairment charges. barclays see up to anywhere up to 23 billion pounds. also there is piling pressure on the pension deficit. we are seeing this across many u.k. companies, even german companies, they have to admit that they have these big pension deficits. font yields are giving you anything in return, and suddenly they have a problem of the deficit. short capital says this could be 4.5 billion pounds, jpmorgan says it could be 5 billion pounds. how is it going to close the gap? well i have to give one-off payments? maybe a quarter of a billion every year for the next decade?

what does that do to the overall financial strength tesco? also, the debt is swelling as well. tesco is no rated as a joke company. what could be done? this is the biggest employer in the united kingdom. done holmby -- this is a club card element. analytics could be worth up to 2 billion pounds. will they sell that particular asset? international assets, as well. what about their asian businesses? what about the banking part of tesco? could that be sold? remember, they have restaurants, too. who there are also centers -- could those be sold? the key issue is persuading

investors that this won't happen, that there won't be more capital raising, there will be more share sales. there could be more asset from the block. he has done plenty already. check out what he has already taken on -- he has already promised to cut costs by a quarter of a billion per year. how was he doing that? he is slashing jobs, shoving headquarters. stores are being closed -- 49 will not be opened. 10,000 jobs is the about that many feel could go across the company. also closing out pension schemes. if you are joining the company, you won't be able to join the pension scheme. they are trying to rain that back. -- reign that back.

tesco does seem to be turning a corner. in the first quarter this year, sales outperformed the rest of the rivals. it is doing better than morrison's because they are starting to be the standout retailer in the four big supermarket chains. so will this continue? we saw a bit of a blip in the last numbers that we want to see the real scale for the fourth quarter. what can this man do to convince shareholders that the terrible year last year's behind them? mark: banks. tesco results due in 48 minutes. greece may get six weeks by agreeing to hold local government funds added central banks. the ecb is studying ways to limit emergency liquidity. let's get to our international correspondent, hans nichols. good morning. we heard from yanis varoufakis late last night. what did he say? hans: good morning.

he said it would be catastrophic if both sides didn't come together for an agreement. at the same time, it looks clear that greek will miss that end of april deadline to submit a list of reforms. young this very fact optimistic and mostly positive, here is what he had to say last night. he said the convergence is clear and the institutions are admitting that. what's interesting is that he is saying that the institutions are walking towards directions. we have a figure -- 1.5 billion euros. that is the amount that is potential he in these municipality accounts that will be transferred to the central bank. that gives greece another 1-6 weeks time. at the same time the ecb are tightening the screws. what they are doing is

discussing -- and it hasn't reached the governing council. but they are discussing whether or not to impose the discounts that are imposed on greek securities, posted as collateral. these are so-called haircuts, increase the risk of borrowing. the ecb is expected to meet later today. in the past, they have done it every wednesday on increasing emergency liquidity assistance. that is 74 billion right now. i'm reporting with the ecb is expected to do. the euro fell on that news yesterday. mark: john isner of factors is optimistic -- he is optimistic. what did they say? hans: whatever he says needs to be filtered through, not only what is said in brussels but in berlin. yesterday we heard from mr. juncker. here's what he had to say -- a bigger effort by the greek side is needed so that we can close the topic of interest on both

side. he said that the intensity of talks has increased in the last four or five days, but they are nowhere close to a final deal to have a final push. this summit will be more of a status check. on thursday, eu leaders will be in brussels, and there is a chance that chancellor merkel will have a separate meeting to discuss what will happen next. mark: thank you. hans nichols in berlin. good news out of japan -- the trade balance has swung to its first surplus since 2012. with more, let's get over to zeb. good morning. zeb: good morning. it is good news out of japan for investors today. fresh economic data showing japan swinging to that trade surplus for the first time. the robust trade data is having

an impact on stocks, as well. the nikkei is rising above 20,000, a fresh, 15 year high for the index as investors bet on japan's economic potential. it could be short-lived. some economists are warning it will swing back to a deficit in april. one of the reasons we saw the trade number swinging in a favorable direction today was the fact that crude oil import costs have fallen. japan has been a big importer of energy. with the suit on me and its nuclear plant shutdown. they paid a lot of money for those lng imports. good news in the short-term. we will watch to see whether global demands for japanese exports continued to stay strong. cars and machinery orders are playing a big role in this latest surplus. let's take a look at the broader markets. we are seeing nice gains across the asia-pacific including hong

kong and shanghai. shanghai composite is up 2% today a strong rally for chinese shares continues. the regional benchmark right now is at a seven-year high as the financial tech shares lead. china resources power -- big movers. what if the key movers in tokyo today -- we will check in on the nikkei. those banking stocks on a terror across the asia-pacific. mark: thanks. top stories on bloomberg this hour -- it was another disappointing court for yahoo!. they reported a drop in sales on tuesday. the chief executive told investors the forecast for the current. would be much better -- for the current period would be much better.

tech will be in focus once again, later, when facebook and ebay report. israeli pharmaceutical firms have lost an unsolicited bid . it is resisting the move. it warns that any such deal would be subject to antitrust probes. a merger between the two would create a giant in the world of generic drugs. the actions of the russian central bank have averted a crisis in russia in the country should return to growth next year, according to the chief executive. he told bloomberg -- >> the moment, both oil prices and ruble rate are up and it makes the situation much better.

frankly speaking, i am the one who will say if we don't have any prices in russia, we probably have negative growth here. probably run 3% 4%. but the russian economy will start to grow about 2.5%. mark: you can join the conversation on twitter. the flash crash and surrouww trad -- remember, may 6, the day the dow plunged 1000 points in just minutes before later recovering. some of those losses -- according to the justice department. tell us what you are following today. ♪

>> the expected inflation rate is about the same five years forward, 1.9%. but the real difference between those two figures is about 200 basis points. quality yes -- but 200 basis points lower in germany says it is a whale of a buy. i'm suggesting, if you don't want to hedge, that you should

sell. mark: dallas bill gross -- dallas bill gross. we are joined by the director of fixed income, kevin adams. do you agree? kevin: he is probably right, yes. but it is probably 18 months. people will be buying a lot of government bonds until next year, and the numbers we've seen and we have looked at means that it will be a real shortage. how are they going to buy government bonds within the constraints they have set? they are driving german bond yields progressively more and more negative. we will have negative german bond yields. mark: .018, the tenure is point.101

-- how soon? kevin: on this trajectory, probably in the next couple of weeks. the ecb seems to be quite systematic and their buying. they have a target per month. they are doing that -- and they just drag that bond yield down and down. two year bond yields below 25 and they are just staying there. it is a really difficult environment for bond investors because there is no value. a fantastic short on a longer-term -- this is a kind of blackhole of qe buying. it is dragging european bond yields down. mark: where is the value within the eurozone bond market right now? kevin: it is tough to see where there is any value because of that distortion caused by q

e. some of them are looking at ok relatively, but that is relative to something fantastically expensive. mark: how long have you been in the bond market? kevin: 31, 32 years. mark: if i asked you 30 -- or let's just say five years ago that in five years time, all bonds going up to 10 years would be negative -- would you have locked me out of town -- have laughed me out of town? kevin absolutely:. even five years ago would have been unheard of. you look at the impact that qe had bond yields down -- just to take them so systematically is extraordinary. mark: are you looking at bonds now which you wouldn't have looked at five years ago, or even 10 years ago?

kevin: i think all investors are being forced to look at the spectrum, because we are required to deliver terms. our clients want positive absolute returns and we are being forced to look at high-yield bonds. you have to be very selective in your security. mark: give me an example of a good opportunity in an emerging market. kevin: outside of the energy complex in the u.s. there are some good opportunities. the u.s. has seen quite a selloff. the energy sector was around 70% of the high-yield index, so the rest of the complex has been driven wide. some of the better quality, strongly positive sectors is where we see value. mark: kevin adams, director at henderson.

coming up, the biggest takeover attempt of the year makes an unsolicited bid for milan worth over $40 billion. ♪

caroline: welcome back. time for a look now at the door and exchange market. let's start with the japanese yen. after two days of losses, we are seeing the yen strengthened against the dollar. this is after we got some trade data from japan. they posted their first trade surplus since 2012, that is why you are seeing this trade here. it was far better that expected.

the next day to look out for is april 30 when we get the semiannual price and growth outlook from the bank of japan. the day before we had the u.s. federal reserve and the u.s. first quarter gdp. some of -- so much of that depends on the dollar. the australian dollar jumped against major currencies today, and that is because we have inflation. in the first three months it was better than expected, at .02%. it takes pressure off the central bank to cut rates. the key rate has been unchanged over the past two months. it was cut to a record low back in february. back to you. mark: top stories on bloomberg at this hour -- hong kong is asking lawmakers to agree to china's terms for the 51st leadership election.

lawmakers are set to vote in the early summer, and the hong kong chief executive says if they don't agree to the plan they risk of delaying. the proposal comes after it is rocked by democracy protests. the head of the you force the administration is stepping down following it drug scandal involving dea agents. saudi arabia is holding airstrikes in yemen. they did not rule out further military action. you can find more on that story at bloomberg.com. let's get back to kevin henderson. -- kevin adams. yes there are factors -- donna spirathe deadline has been

pushed back. eu officials are now saying through the end of june. will he get a deal soon? kevin: i think we have to. the great financial situation has been dragged in as much cash as they can. the municipalities are screaming about that and we will see whether there is any legal action to try and get their hands back on their cash. the greek government are trying to buy time by scraping in all the cash they can. the discussions on friday are dead in the water. moving forward, they have enough cash to meet their payments in early may, maybe through the end of may. there is a hard deadline at the end of june. when the emergency lending program stops. mark: the big ecb payment in july.

those are the key dates. what is the bond market telling us? i know the greek bond market is at the most liquid but it has yielded 13%. what can we read into this inverted yield curve, going further and further into record high territory? kevin: it is difficult because the market is telling us there is a low probability of default, but the consequences of that default will be very severe. we kind of have a low probability but severe effects and that is really hard. that is the discussion we were having yesterday. from our point of view, we don't have any great exposure, what do we want to head some of our credit exposures due to the fallout? -- credit exposures into the fallout? the market is telling us there

is no certainty on how it will play out. it is absolutely evident. varoufakis says there is convergence but that doesn't appear to be the case from the european side. we are stuck in this position of continue to deadlines being failed. ultimately, or has to be some restructuring default on greek debt. how they do that is yet to be decided. they have to have some sort of default restructuring. nobody has so far defaulted on the imf, and that is a turning point. to find a way they can make that palatable to the creditors. it doesn't have to be met greece leaves the euro, and i think that is the central case. conceivably they could default, but not leave the euro. that would take compromise on both sides. mark: good to see you, thank

you. it's the drug industries against a takeover attempt this year. an israeli pharmaceutical has made an attempt at malilan. david in tel aviv, good morning. why do they need this? david: teva is a generic company that grew by making expensive branded drugs. at some point in the early nine t 90's, -- the early 1990's, they branded a drug for multiple sclerosis. that drug became -- it is a blockbuster drug. that drug is now going off patent this year. that means about half of their profits are in danger.

what they are trying to do is up their scale, do a major acquisition, do something anything, to deal with this impending drop in profits. mark: what are the obstacles, david? is this a done deal or not? david: this is by no means a done deal. speak to former teva executives and board members, people who have been following this. the two companies have talked to many times in the past. absolutely no -- every time they talk, there is always this -- how are we ever going to do this? there are so much overlap. there are the antitrust issues in the united states, and there are cultural issues. mylan's people want to run their own company, they want to be standalone and so does teva. there are 70 obstacles, but

there seems to be growing pressure from myland and teva shareholders that this deal makes sense but there is a lot of rejection. mark: what does mylan give teva? david: mylan is a signal that it is going into the generic industry into the traditional industry that teva was built upon. it gives teva low-cost manufacturing facilities in india, poland brazil. mylan has technology to produce similar's which are more complex generic drugs that will be coming to market in the next decade. it gives teva a whole lot of scale, and it creates synergies for investors and shareholders.

so that is what teva would be getting. mark: thanks for joining us. you can join the conversation on twitter and tell us what you are following today and what you think of the show. among the trending subjects today -- flash crash. i think he was arrested yesterday for alleged manipulation. remember that may 6 -- the dow jones plunged 1000 points in minutes before later recovering. getting some news. richemont is seeing a fall of 36% due to non-cash market to market losses. big news from richemont, the jeweler. their profit will be down around 36% due to non-cash mark to market losses.

interesting announcement. coming up, yahoo! weighs in on its japanese division after revenue misses estimates. ♪

mark: top story on bloomberg this hour -- another disappointing quarter for yahoo! , reporting a 4% drop in sales after tuesday.

marissa mayer is telling investors that the forecast for the current period wouldn't be much better, but she did announce plans to maximize the value in the stake in yahoo! japan. israeli pharmaceutical teva has launched a bid for mylan. mylan is resisting the move claiming it wants to stay independent and warning any such deal would be subject to antitrust. a merger between the two would create a giant in the world of generic drugs. the actions of the russian central bank has averted a crisis in russia, and the country should return to growth next year according to the chief executive. here's what he had to say. >> for the moment, both oil prices and ruble rate are on the

rise, and it makes the situation much better. frankly speaking, i am the one who is saying that we don't have any crisis in russia stop we would probably have negative growth in two years. probably around 3%, 4%. our forecast is starting -- the russian economy will start to grow. mark: with yahoo! missing revenue estimates in the first quarter, attention will turn to facebook and ebay, both reporting. here to talk all things tech, i am joined by the partner -- thanks for joining us. can melissa meyer turn this ship around? she's had since 2012. revenue was down 4%. if you look at all the quarters since 2012, 4% is as good as it gets. >> yes. she has a tough job. this is a company that i don't

think this is relevant today as it used to be a decade ago. revenue is down revenue in searches is down. they are kind of inflating it by doing things like the mozilla deal. if you take all those traffic acquisitions out you can see that the core business is deteriorating. not necessarily rapidly, but it is deteriorating. what she calls maven, native advertising, it is not growing fast enough. a very small number. mark: mobile revenue is up. hussein: google is up, facebook is almost tripled on the back of this maven-oriented strategy. yahoo! is in the turnaround to deepen the turn that i don't see it around coming. mark: how longer she have

before investors start to look at her job? the ali baba stake has given her some time. they will do the same with yahoo! japan, aren't they? hussein: one of the folks, jackson one of the folks who wrote the original blog post about the sum of the parts analysis on yahoo! against the guys in new york he has been on the case. if you look at yahoo!, they are doing all these one-off license deals and they are recognizing it as revenue. if you take that stuff out of the business, the business is seriously -- mark: is there a figure? if you strip out ali baba yahoo! japan -- hussein: it is very close to zero. that is the trouble. mark: was in a job she shouldn't have taken? hussein: it was a tough job and

i don't know if she was the right person for the job. it was a business that needed a business person. the restructuring -- yahoo! is doing a bunch of layoffs. they should cut 15%-20% off the bat to save money,. mark: if you are a softbank or private equity firm, is it a target? hussein: this is the kind of firm a private equity should be running. you don't need a product or a visionary person you need a company that can turn around. mark: you think it is only a matter of time before that happens? hussein: a year away. mark: interestingly, since she joined the total return -- she is outperforming her peers. but a lot of that is down to the alibaba -- hussein: exactly. the stock performance has been phenomenal, but the core business has been deteriorating. yahoo! will need to find a home somewhere.

mark: ebay? hussein: the other big brand. these are two internet darlings 10 years ago, and today they are both distressed companies. they are no longer growing. they had it tough 20 -- they had a tough 2014. they are not growing very fast. these are two turnarounds -- mark: what is the lesson learned from both these companies? hussein: if you are an investor you are not just buying present cash flows but all future cash flows. it is only 10 or 15 years before they see an expiration date. you have to ask yourself -- people are assuming these things will be stable but these markets change pretty rapidly, and then there is a new generation of players. mark: facebook and google are the new generation.

facebook and google will announce on thursday -- what is the key? hussein: to see what the growth is. facebook is pretty much dominated. google is an interesting story because google might also be faltering. their growth is slowing down, especially as the world transitions to global. -- to mobile. they are making up for the fact that people are searching less. that is another want to watch. it might be shaky. mark: what an exciting year. hussein: the good news is that you can set up a company today because the cost is so much lower and they grow phenomenally. if you look to the next generation, these are the companies that are changing the game. although facebook has been a phenomenal company. mark: thank you.

coming up, we will look at your favorite stories from bloomberg digital, including tesla. ♪

mark: welcome back. one former tech executive says he has discovered a new concoction that could make you invincible. we take a look at the mixture, and whether the cocktail stacks

up to its claim. >> our biology changes in response to the environment around us in ways that are not obvious. so when you change the environment around you are inside if you, you can have profound effects on how you feel, perform, and the quality of your life. i have paid my mission to make the changes in the environment around me that make me more effective at everything i do. i am a professional hacker, the creator of bulletproof coffee. it has always been about identifying and taking advantage of every single thing that makes people perform better. but you drink it, you don't care about food -- no craving, no hunger for 4-6 hours, and you feel mental clarity.

i used to weigh 300 pounds. i was having serious cognitive problems. i had bad health even though i was exercising. i was frustrated. i made it my mission to hack this problem, to go out and change it. i started to put my full resources and efforts into upgrading myself. part of this was a trip to to that. -- to tibet, a remote region. at 17,000 feet elevation, you can expect to feel like a zombie. the tibetan woman handed me a mug of yak butter tea. it isn't that flavorful but i drank it and i felt the life turned back on. i was amazed at how good i felt and when i came back i said, i want to re-create that feeling.

i looked at all the different types of tea and realized coffee works way better than tea. what is the most important variables was the coffee beans. different types of coffee have a different effect on how you feel. when i isolated toxins as the primary differentiator i developed lab testing so i could always have the right coffee that didn't cause crash or jitters. it is been blended with grass fed butter instead of milk. milk has things that stick to antioxidants and butter doesn't have much of that. now for the secret ingredient -- oil. it is about 6% of the fat in coconut oil. it is so noticeable -- the lack of sugar cravings -- it turns on right away. hot coffee. [enginge revving]

it tastes like the best latte you have ever had. you drink it and 5-10 minutes later, i feel like myself. two hours later, i didn't even want to eat the bagel. the doughnuts lost their siren song. those really strong cravings just go away, and that is the amazing thing. that is the secret of why it is so popular -- because it works. the things that make us better humans are what i and interested in. my mission is to show people what it feels like to be stronger and to have the energy. coffee is just the beginning. mark: i think i need some. "countdown" continues in the next hour. ♪

have a look at where you will find me on twitter. big day for tesco. ♪

mark: flash crash arrest. the u.k. trader of -- accused of wanting one for you dollars in stocks in the u.s. in 2010 is appearing in an tradition hearing. he allegedly mitigated the futures market. anna: stock it's a 15 year high. we break down the number giving the list to the world's first economy. mark: tesco could face over 4 billion pounds in losses as it reports earnings. we bring you details in what could be the worst year as tesco 's history. anna: greece and the eu are

narrowing differences. the deadline for greek reform plans to unlock is june, not the end of april. mark: welcome to "countdown." i am mark barton. anna: i am anna edwards. mark: the key to heightened brain function is butter in your coffee. anna is going to try it anna: later in the show. anna: i don't know if my heart can take it. apparently in make you feel better. we will see. that is later this morning. what we are waiting for his numbers. we are getting numbers from tesco. the grocery giant in the u.k. and far beyond. caroline hyde is waiting through the numbers. 1.4 billion pounds. caroline: bang in line with analyst and their own estimates

says tesco. they are looking for like for like volume sales rising for the first time in four years. the pricing is trying to show that some of the changing's -- some of the changes are taking place. volume is not sales, and like for like sales have fallen 1% in the fourth quarter. we have a 7 billion pound one off charge. that is phenomenally large. many had expected to see a write-down of 5 billion, but 7 billion is larger than analysts expected. they say it is predominantly non-cash and includes 47 pounds -- 47 billion pounds of fixed asset impairment. that will likely be real estate. it reflects challenging industry conditions and the profit decline. the pension deficit is another thing we are watching. the funding plan has agreed with the trustees. there is a cash contribution in excess of 270 million pounds per

year. that is how they are going to shrink the deficit, something they have been wrapping up -- ramping up. pension deficits are white. -- widening. they have a plan to fix that. they reiterate their commitment to reinvest any savings and outperforming further improvements to their customers. a net loss for the full year of 5.7 4 billion pounds, more than had been expected because of the huge one-off charge. this will be about the past. the future strategy is what we want to hear from dave lewis, the chief executive. the budget for 2016 has been confirmed that no more than one billion pounds. anna: they are talking about the market being challenging. caroline: pricing is being hit

with deflation and prices across supermarkets. they say it is challenging but it seems to be an improvement. mark: biggest loss since 2004. the nikkei closing about 2004 the first time since 2000. back to the year 2000 for the mckay -- nikkei. >> 15 year high for shares in japan. 1.1 percent the advance for the nikkei. thanks and brokerages along with oil producers gaining in the session today. let's look at some of the key movers on the nikkei right now. it was the trade data that powered them ahead that gave investors reasons to buy into names like sony financial, up nearly 7% today. swinging to their way for the first time since 2012. the general expectation is that

profits in japan will remain on pace to record double-digit gains. in terms of the impact to begin -- to the yen, this is what we are seeing. there is a little change in the session but it gives more optimism to investors. the yen printing at 119 point 25 levels. not a huge strengthening from yesterday at 119.67. a big day in terms of trade number, economists predict that japan will swing back to a deficit position in the april data. mark: thanks a lot. breaking news. anna: this from rolls-royce. john rishton will be the chief executive. john rishton has decided to retire as chief executive on the second of july, just a few months off from now.

he will be succeeded by warning east. there was an international search. worn east -- warren east performed over a different performance at arn. that is a chip designing business in the u.k.. they supply apple and the like. he seems to be taking up ceo at rolls-royce. he has been a non-executive director at rolls-royce for the last year so he has known the business closely for at least a year. i spoke to john rishton last week with the deals that rolls-royce did with emirates and john rishton said it is time for a different lifestyle, so he decided to retire. mark: john rishton, who is leaving, he used to be the cfo of british airways. anna: i did know that. mark: did you? that is your former -- anna: yes. and then he went on to the dutch

retailer, arholdt. mark: she comes back jointly, and blows me out of the water. anna: sorry. mark: since he was ceo in march 2011, he has a total return of just slightly less -- and rolls-royce -- i bet you know that -- 15.8%. very close. anna: very good. mark: you stay away from me. anna: [laughter] seven minutes after 8:00. suburban house in west london has been arrested and charged with 22 criminal counts in the flash crash which marked -- which white 120 and dollars from the u.s. stock market in 2010. ryan chilcote is outside. what do we know about this man? ryan: his name is navinder singh sarao. we got the criminal complaint yesterday, the affidavit.

he is 36 years old and he is from this somewhat quite neighborhood in the west of london. i say somewhat because it depends on whether the planes are flying overhead. we are directly beneath the flying path of london's heathrow airport. it is not the most expensive place to buy a home because of that reason. we're also next to a noisy highway. it is from this street in his home that u.s. prosecutors say he engaged in illegal trading activity beginning in 2009 and significantly contribute in to the market crash, the so-called flash crash on may 6, 2010. interesting. we are 11 miles from the financial district, perhaps not the place where you would expect a lone daytrader could cause a

global stock market crash albeit one that only lasted for a few minutes. they say that on that particular day navinder singh sarao placed 9000 orders to the tune of 2000 pounds of debt. he illegally gained $900000 on that day and in his five-year tenure of a legal training -- of illegal trading, they say he made as much as $40 million. we have tried to contact him and have been unsuccessful. his neighbors say he was quite kept to himself, large family. difficult to find people in this neighborhood who could say too much. not too many people here speak english. this is a working-class neighborhood, people getting their foot in the london property ladder. he will have his day in court in london later today. he is going to appear for an extradition hearing and

hopefully that is where we will get to hear from mr. sarao himself. he is facing very serious charges, some of which could carry present terms up to -- prison terms of up to 25 years. anna: what is it he is alleged to have been doing during this period? ryan: the prosecutors say he was doing something called spoofing and layering, which in itself is an illegal activity. it is effectively when you place a trade or a large volume of trades without the intention of ever filling that order. in many cases they say what he was doing was placing an offer on the market that was a little bit better than the best offer out there and then he would cancel the orders. when he started he was using

some over-the-counter software to place these trades, but prosecutors allege that at one point he asked a company to modify the software so that it would automatically cancel the trades and at a later point even asked the company to send in the code so he can practice work on modifying the software itself. that is the practice that they say he was engaged in that led him to learn quite a bit, they allege, money over the years. back to you. anna: thank you very much. mark: greece may have bought six weeks of time by demanding to hold local government bonds at its central bank as ecb studies ways to lend emergency liquidity assistance to the greek financial system. we are joined by hans nichols. let's start with you, hans. weird from yanis varoufakis the

finance minister, late last night. what did he say? hans: he said it would be catastrophic if the two sides did not read some agreement. it is becoming clear that greece is going to miss that target by the end of april 2 submit that list of forms to their creditors. varoufakis seems confident. he said convergence is absolutely clear and the institutions are admitting that. he told a reporter that both sides have invested a huge amount in achieving an agreement . it is clearly to the benefit of everyone. according to a person familiar with the matter, it looks like the greek central bank where the cash is being held will get about 1.5 billion euros. that is from asking municipalities to take the cash and hold it at the central bank. that puts them through about mid-may.

that gives them another six weeks, maybe the end of may. at the same time, they are grumbling. i want to stress that they are grumbling at the european central bank that they need to do more to ensure the quality of the collateral is a little bit better coming out of greece. this is being discussed at the staff level and what they are talking about is imposing discount on the securities that are posted as collateral for loans from the ecb later today, maybe tomorrow. the ecb will have another meeting on emergency liquidity assistance up to 74 billion euros. it seems as though although this has not been discussed at the governing council formally, it seems as though the ecb is starting to get a little more concerned and they may tighten the screws. mark: varoufakis seeming optimistic. what about eu officials? hans: in the past, eu officials at the new most optimistic of

the three when you consider what the ecb is saying and what the eu finance minister is saying. jean-claude juncker does not share the optimism. he said a bigger effort by the greek side is needed so we can close the topic in the interest of both sides. that is from mr. juncker. he is been a champion of the greek shaws -- because. -- greek cause. mark: good to see you again. how are the municipalities taking this cash seizure from the greek government? >> not very well. there has large amounts of discontent especially from eras -- from mayors. is the confiscation of cash reserves. if greece really has on the back of its mind to exit the euro

why it would do that. why would it go forward it to -- with a reform that would bring a financial aid disbursement and having some money on the side if you can't get out of a situation where you have to bring your own currency having someone your site would not be bad. it is a real mess. the finance minister just said that we are short 354 million euros four bank and pension wages at the end of this month and hopefully the overdue tax scheme will help in filling this gap. mark: thanks for coming in. good to see him in the flesh. anna: it was another disappointing quarter for yahoo! the tech giant reported a 4% drop in sales for the first order. mercer said the forecast for the current period would not be much

better but announced plans to maximize its stake in yahoo! japan. facebook and ebay report after the close on wall street. israeli pharmaceutical teva has launched an unsolicited bid for mylan in the region of $40 billion. mylan is claiming it wants to stay independent and warning any such deal would be subject to antitrust probe. a merger would create a giant in the world of generic drugs. the russian central bank have averted a crisis in russia and the country should return to growth next year according to db bank ceo andre coster. zeb: >> -- >> the ruble rate has stabilized. it makes the situation much better in the country.

i'm the one who is not saying there is any crisis in russia. we could have economic growth here all the way around 3% or 4%, but our forecasters from 2016, the russian economy will start to grow at about 2.5%. mark: join the conversation on twitter. tell us what you think of the show. flash crash is trending, as is tesco. 5.7 4 billion pounds net loss. biggest ever. anna is back. we borrowed her from the politics show. anna: i am on loan. ♪

>> the expected inflation rate is a same five years forward in germany and united straight but the yields between the two securities are 200 basis points lawyer -- lower for germany. what does that say* it says u.s. treasuries are a whale when the u.s.-german bonds are in a world of short. if you don't want to hedge -- mark: the german bonds are a way of a short -- whale of a short

according to bill gross. you are already shorting bonds. >> i don't know how confident i am near term that this will work out. it is zero cost to fund. we started shorting it once parity was announced. it is a very low-cost fund at some point. you will get the reflation area affects from qe. investors are not buying german bonds. anna: you are trying to go against what many in the market are doing at the moment? you expect yields to go up? patrick: at some point, they will. i don't know if it will happen during qe. u.s. tenure bonds did become more viable and rose about 50 basis points. treasury sold off. germany is a less liquid market.

short-term, it is very difficult to say. it is a short i'm happy to carry because there is zero cost to run it. mark: once upon a time, you held greek debt with the free yield -- the three-year yield at 10% and the 10 year 30%. what is the bond market telling us in greek? patrick: that is also a very liquid market. looking at the bid offers, there are so little held. it is to official agencies. that is where the bulk of the debt is held now. it is not in the private sector. there are risks, granted, with the default. i don't think that is going to happen. i think there will be in 11th-hour deal. it is not even from a financial consequence. four years ago we were worried about financial contagion, banks capitalization, and that has been largely addressed. the geopolitical situation and talking about russia and putin

and if the greek exit happens and they line up with russia then their position in nato things like that. the u.s. is very much in all of europe's ear saying we do not want greece out of the eurozone. we want them on our side. anna: if we see a change in the greek story, if we see a change in the rhetoric a sudden sigh of relief or if things get worse, when does that happen? is that the end of this month or the end of june? it seems that officials have been guiding towards the june deadline. patrick: if you want a resolution, build up a bit of a war chest so they can get through may, it looks like. i don't think either side will come to the deal until it has to be done. the ela and putting more harsh collateral on greek banks, that is something that the ecb has and that pushes things 40 with it. greece has built up a few billion to get through may.

i suspect we will see this all through may. it is a political decision, not a financial decision. if the greek people want to be in the eurozone, i think the ecb wants it. mark: have you been buying stock recently? patrick: the french banks are in the best position right now. it is a good reason for the short-term, but in the long term these banks are trading below tangible book value. they will be raising dividends in the next two years as a capital position improves. cheap assets, giving you a dividend deal, the banks are a preferred sector in your. anna: can i get your thoughts on the flash crash that happened a few years ago in 2010? we have seen some news on that this morning. we have seen these allegations against a day trader in west london who has been arrested. would you be surprised if

daytraders could have an impact on the market here? the big market? patrick: from what i heard about it, the orders he works -- he was placing for $200 million. on an individual stock that could have an impact. the orders were there, instantly disappearing and appearing. he was trying to gain quantitative trading system. he figured out how they worked. when they adjusted his pricing, they started selling. he may have contributed to it but i suspect that 1/5 of all orders placed headlines like that. i don't think it is as material as -- anna: these are all allegations at the time. do you have confidence that changes in regulation since that time would stop that kind of thing from happening? that kind of avenge makes your life difficult. patrick: i don't know if things have changed. i'm sure there are always clever people with little angles. the math and volume of quantitative trading algorithms

if you can find edges to get them to move, there are a little ways to do that. i don't think the market will ever catch up with that because people are incentivized with profits. if you can find little systems to do that, it is very hard to regulate. mark: on technology, on algorithms, google is popular with you. anna: it is like the eu. patrick: that is what we are liking about it right now. there is a lot of bad news in it. the selloff from where it was in march, it has lost $27 billion in market cap from last year this time. it reports in tomorrow. where we are short in the united states is utilities. they are trading at 17.5 tiomes earnings. -- times earnings. google has its fingers everywhere. utilities are not going to grow. google is. anna: thank you very much.

mark: tesco reports the biggest loss in its history. we look at the numbers topping a terrible year for the supermarket giant. ♪

anna: welcome back to -- >> welcome back to "countdown." the euro unchanged against the dollar right now. this currency is trading near a 12 year low. also on course for a 10th month of decline against the dollar. some analysts saying it could reach parity with the dollar this year. part of that is down to dollar strength. a couple of big reasons for the euro's weakness.

quantitative easing from the ecb we started last month, but also the concerns over greece. the cash crunch really getting critical. we have the eurozone finance minister's meeting on friday. we will see if we get any progress from that. also want to look at the pound trading flat against the dollar. in a couple of hours at 9:30 london time, we will get the minutes from the bank of england meeting. keep an eye on the pound after that. back to you, mark. mark: hong kong is asking its lawmakers to agree to china's terms for the city bosch first leadership elections. hong kong says if they do not agree to the plan, they risk giving citizens the right to vote. it comes after all one of hong kong's most are doing years, rocked by democracy protester the head of the u.s. dea is

stepping down following a drug scandal involving dea agents. michelle leonhart was the first woman to lead the agency. saudi arabia says its goals were achieved with airstrikes in yemen and it will look towards political reforms. you can find more on that story at bloomberg.com. anna: we had early from tesco earlier this hour. the company posted net losses of a whopping 5.74 billion pounds. one-off charges fueled it at 7 billion pounds. let's get more with that. recap some of the big numbers. and there are some big numbers. caroline: chief executive is saying it has been a difficult year for tesco. you don't say. 5.7 4 billion pounds.

that is the number you are looking pretax. -- that is the number. if you are looking pretax, it is even bigger. they have taken a huge 7 billion pound one-off charge, related to commercial intake they miscalculated the previous years. member the profit back:, the countenancing -- remember the profit why coal -- black hole, accounting scandal. they are facing reality, that is what dave lewis is saying. what the issue is if there is no resolving any of this they have said they are bringing on the chief executive of u.k. bit faster, they're moving to decrease the deficit in their pension. no asset sales are expected. the club card analytical move unit is well advanced. nothing for that. anna: let's talk about strategic

options. what is the biggest issue they need to fix? there seems to be a long list that caroline started to outline. simon: i think for dave lewis, today is a clean slate for him. the numbers are out. they don't make for great reading, especially for shareholders. he generally start from the beginning. the first thing he has got to do is continue to start from that ballot seat -- balance sheet. that will simplify the portfolio they have. these remains what can they do with their stock. anna: it is a big box problem. mark: all european rick nash simon: all european -- simon: all european retailers are seeing it. they will have to be more collaborative. we have seen signs of that. bringing that collaborative retail will bring people back to the stores as shoppers have

changed. anna: they have an upbeat statement about footfall. they are buying more and tesco. are you frustrated that we have not talked about the selloff from the restaurant chain perhaps of dobby's, the garden center. getting some of the money from the assets, do they need their asian outlet? simon: that is the thing again. there have been significant strategic downsizing of the business already. it is under dave lewis's tenure. anything that is unprofitable is likely to go or anything that does not make money or needs a lot of money to make more money will have to go. i think that is what is happening at throughout the year i think we will hear about more sales, of gerard's cop perhaps. if it is not working at the moment, then it is not useful in the big stores. mark: how long does it take to rebuild a reputation and a brand? simon: after strengthening the

ballot sheet, that is dave lewis's biggest challenge. he has to reinvent the tesco brand. the problem over the years is that we are seeing shoppers don't have a reason to go to tesco stores. if you think about all the other customers in the market everyone goes there because they know they can get good prices. when you think of morrison's you think afresh. when you think of tesco, they do not have that unique positioning. when they are in that middle ground, they suffer. i think what is key is they have to change their marketing strategy number one, and they've invested in new marketing messages. they have to connect that marketing message. if they two-pronged approach. we have seen how powerful that message is. they simply say come to our stores and you will save xml the money.

-- x amount of money. any marketing message that tesco will put out in the future, they have to back it up in the stores. that is delivering what we call real value to the shoppers. caroline: you start to see a turnaround. you see that like for like sales are improving better than many of their rivals and big players in the u.k.. you think that might continue in the first or second quarter? simon: i think today dave lewis conditions of a pat on the back because we are seeing improvements in like for like an over the last two reporting periods they have increased their market share. in a tough environment, that is a significant achievement for tesco. to carry on that upward trajectory, i think they do have to improve their price. we saw a report yesterday that is showing up.

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and to bring it every day. coffee is just the beginning. mark: up next, goodwill for tesco running out? ♪

mark: time for today's bart chart. has goodwill for tesco run out? today's 5.74 billion pound net

loss will certainly be the ultimate test for chief executive dave lewis. he took over the company in september last year. he has seen a resurgent in the company's stock price in september 15 last year. that is the red circle, when the stock sank to wondered 64 pence -- 164 pence. the shares have jumped by 42%, closing yesterday at 234 pence. that is 17 pence short of their high for 2015 on april 7. from there to there 42%. that equates to 5.7 billion pounds of market type. don't get carried away. last year, tesco stock plunged by 44%, wiping 12 billion pounds from its thought you wish. that is not even the whole story. this is the chart from

2007-2015. tesco shares our top left. green circle. pete on november 14, 2007, when they reached 492 pence. they have more than halved since then, dropping 52% through yesterday. that equates to 20 billion pounds of market type. give credit to dave lewis, the ceo. he has overseen a change in fortune for the shares since he took over in september last year, mainly because the turnaround plans he announced in january. tesco this year is the fifth best performance on the ftse 100. last year, it was the worst performer on the ftse 100. tesco's results today do serve as a reminder of the scale of the task facing lewis. analysts before the release of today's record net loss forecast

of 4.5% upside over the share for the next 12 months to two under 45%. -- 245%. 32% had a buy rating 48% had a hold rating, 20% had a sell rating. let's finish with words of tip barker, who spoke before today's record loss. it is going to be challenging for tesco to turn around trading improvements into financial improvements. it is to sue early two -- it is too early to say the company has turned a corner. has goodwill for tesco run out? anna: it was another disappointing quarter for yahoo!. they reported a 4% drop in sales. ceo melissa mayer said forecasts for the current period

would not be much better. tech will begin focus later today when facebook and ebay report after the closing on wall street. the israeli pharmaceutical firm teva has launched an unsolicited bid for for mylan in the realm of $40 billion. mylan is warning any kind of deal would be subject to antitrust probes. a merger between the two would create giant in the world of generic drugs. mark: let's get more on that mylan-teva deal. david, tell us why does teva need the deal? david: teva copied branded drugs and selling them at a discount. that is how it grew its business. in the 1990's it started -- it found a multiple score was --

multiple sclerosis drug that became a blockbuster. it accounts for 50% of teva's profit. that drug is going off a pass and this year so teva that puts a big threat to cap a's -- two teva's growth. they are looking at that as a way to improve its growth in a big way. mark: what are the obstacles? is this a done deal or not? david: this is by far not a done deal yet. there is quite a few obstacles. the major one is an antitrust one. teva and mylan compete in similar markets. teva is the number one generic drug maker. mylan is number two in the u.s.. antitrust authorities will have a close look at this. that is a major obstacle. mylan shareholders, mylan's chairman has already publicly

said that he does not see the deal as a good fit for mylan. teva's ceo will have to do quite a bit of convincing. there are quite a few obstacles. mark: thanks, david. david in tel aviv. anna: you are looking at a live shot of london. equities open up and around 10 minutes' time. trading pretty flat for the start of this morning's trading session. the nikkei 225 closed above 1000 for the first time in 15 years. let's see what that does to european trade. after the break, we will look at what is driving trade today. ♪

anna: we are just a few minutes away from the start of european equity trade. tesco will be one of the stocks to watch for sure. it just recorded the biggest loss in its history. caroline is here. let's remind everyone the scale. caroline: they are bigger than has been expected. kitchen sinking it is what everyone was saying. 7 billion pounds of one-off charges related to the restructuring of the business the stock, and even commercial income of previous years. that was the prophet black hole they had. 7 billion and one-off charges

means there is a net loss of 5.7 billion pounds after-tax. before tax, it is bigger. the pension deficit is widening. they are looking for ways to help that. they will be putting in about 250 million pounds each year to ease that deficit. that is escalating. that is why it is no longer judged as an investment-great company. the issue here is what next for tesco? there does not seem to be much solving the issue. anna: plans to cut costs and shrink the deficit, but what about -- caroline: nothing. they were looking to sell that. that is all we get in the statement. they are well advanced and involved. nothing tangible there. the portfolio review.

ongoing. please, give some details. are you looking at selling your asian businesses? what is the future of this business? how are you scaling back? how are you simplifying? he tries to woo the investor base by saying there are more people coming into the stores. volume is picking up. like for like business was worth than expected. that will be a concern. matt davies is coming in earlier. that will be a bit of an easing. we are not seeing anything that new as to how they are changing the business. it is customer-focused customer first. they are putting in more people. 4062 additional customer-facing roles. they will have more space for their top product. this is talking the talk. we want to see them walk the walk and sell assets shore up the balance he. mark: you need a reason to go to tesco. there is a reason to go to

wakefield. not to tesco. anna: caroline, thank you very much. that is the end of "countdown." on the move is next. mark: moore with caroline and jon is next. see you tomorrow. ♪

jon: good morning and welcome to "on the move." i'm jonathan ferro in london. moments away from the start of european trading. there is one story dominating the stories. tesco's monster loss. it reports its biggest loss in its 96 year history. a full year net loss of 5.74 billion pounds. tesco says the market will remain challenging. nikkei closes above 10,000 point for the first time in 15 years in japan swings towards the first balance surplus in years.

a u.k. trader accused of causing a flash crash in the u.s. five years ago to appear at an extradition hearing. we're talking about tesco. futures markets are dead flat. dax futures are high, up by 28 points. euro stoxx 50 futures, 13 points higher. i had to take you back to tesco. their epic annual loss. let's get to the bottom of this . we're joined by caroline hyde michael houston, and retail analyst charles allen. i will kick it up with caroline. the biggest loss and all they century at the company. bigger than almost everyone expected. caroline: you are right. that is what is going to be dragging shares lower.