tesco reports a smaller than forecast sales decline. the new chief executive is still set to face tough questions over an accounting scandal, executive pay, and asset sales. that's what we are watching. let's check in with caroline at the touchscreen. caroline: good morning. we will see how we are opening on the equity markets. it has been a down couple of days. suddenly concerns springing into investors' minds when it comes to greece. will a deal be done? they are meeting for the fifth time in just over a week. these people are seeing each other more than their own families. they are trying to get to an agreement before june 30, when the bailout agreement comes to an end. can they extend that? can greece make that payment to the imf? it is about pension reform,

sales tax increases, and is also about potential debt relief. societe generale has been saying you need a growth plan too. it is not just about how to get through this hurdle. how do we ensure that greece returns to growth? the ftse off by 0.3%. france lower by 0.7%. italy also opening lower. a little bit of contagion in the air. checking on the bond markets this morning, borrowing costs up for italy. clearly, we are still seeing some concern. spanish borrowing costs up almost two basis points as well. money tends to be coming out of where they see as a risk. money going into the havens. borrowing costs coming down for greece. liquidity is so thin there.

we were hearing about the volatility we are starting to see in the mix and the v-stocks the measure of people looking for protection on equity holdings. those both moving higher over the last two days. people seeking out protection in terms of credit default swaps. let's have a look at some of the equity plays. tesco coming out with its first-quarter numbers better than expected. the share price up 2.5%. we see like for like sales down on a value basis 1.3%, but that was better than many had hoped. we would like to see improvements in asia, and volumes are higher. we are not going to see much value growth across any of the grocery market, because we are seeing this competition continue. but if you see volumes up, maybe that reckons growth for tesco.

will there be questions on the executive pay? tesco moves higher. air france basically flat. we get some news saying that 3000 more jobs could go, 300 pilots could go, and more aircraft could be decommissioned. watch out for air france. this is a fun one to watch, cayenne s. -- k+s. it is all about the m&a story. it is being bid for by a canadian company. mark: caroline, thanks. the shanghai composite has been making headlines today. juliet joins us from hong kong. hello. >> hi. mark. it is a pretty ugly day in china. we are seeing massive falls coming through on the shanghai

composite. its biggest one-day loss on track for its biggest one-day loss ends 2007. we are seeing weakness come through from all the sectors. morgan stanley saying, don't buy, because we think we have seen the peak of the asian market around june 12. we are on track for another weekly loss. where was there a lot of money coming in in that strong route in the chinese markets? technology stocks. they are down by 9.6% today. also seeing a lot of weakness from the industrials. a lot of falls. just absolute red across the screen on the shanghai market. looking across to the rest of asia, we have seen the china concerns and the greece concerns weigh on markets in the region due to volatility in commodity prices weighing on the

australian share market, which is heavily linked to commodities and mining stocks dragging the asx 200 down. in japan, we had that great run on wednesday, the best close on the nikkei since 1996. today, slightly down. a little bit of money coming into south korea, particularly in the pharmaceutical sector, and a little green from the smaller markets as well including new zealand. the big story, the fall on the shanghai composite. analysts scrambling to say, is the big run over are the bears coming back in and taking money? certainly a lot of risk appetite in china today. thanks -- mark: thanks for joining us. greek prime minister alexis tsipras and european creditors have bailout talks extended into the weekend. let's get the latest.

hans nichols is in brussels. ryan chilcote is in athens. paul is in frankfurt. hans, publicly and privately, the two sides seem to be far apart. hans: they are far apart. they will have an opportunity to bridge those differences, but not until saturday at 5:00 p.m. it will be very clear to mr. tsipras. last night, it was the eurogroup, the finance ministers. it is the proper venue for trying to hash out a deal. basically, on the means on how you get to the end. you heard some of the rhetoric coming out last night and earlier as well. one note of optimism. it looks like the institutions are going to score with mr. tsipras the counterproposal that he made yesterday. that includes modifications of the creditors' proposal that was

rejected by the greeks. that could be some vehicle that they will start talking about on saturday. a summit that starts at 5:00 p.m., everyone left last night at 3:00, 4:00 a.m. 5:00 p.m., i think that ends early sunday morning. mark: let's go over to ryan in athens. where does this leave alexis tsipras? ryan: the most telling moment for me yesterday was when they said to the greek prime and, the game is over. he responded, this isn't a game. 1.5 million people in my country are unemployed. i think he's channeling not just his own views, but the views of his party. credit suisse came out with a note. they say the actual big risk for getting a deal by monday is the greek parliament. the credit suisse says that the greek prime minister could

probably do that even if it required a messy realignment. it is pretty clear that his own party and the party that he is together with an a coalition, think that the terms that have been offered thus far are not good enough. even no deal could be better than a messy deal or a deal they don't think is good enough. the real issue here is what is going to happen with the greek parliament. credit suisse says there will be a deal because the stakes are too high for all involved. if there isn't a deal come monday, the banks might be shot and we could have capital controls. mark: thanks. let's gets a paul in frankfurt. jens weidmann spoke yesterday. do you think his speech signaled the mood changing for the worse in the ecb? paul: it certainly shows that there is resistance to further

emergency liquidity for the greek banks. to knock it back, you need a two thirds majority. weidmann now arguing that the greek banks using this money are actually spending money on greek government debt. that is a legal. he says there are serious concerns about doing that and he's not the only one who thinks that. it is critical that the banks, as ryan noted, if liquidity is not there, then the banks may not be able to open on monday. capital controls come into play. the ecb holds this lifeline. at the moment, he's unwilling to be the one that cuts it off. mark: paul gordon in frankfurt, ryan chilcote in athens, hans nichols in brussels. julian is here, to talk about greece and china. let's talk about greece. we are approaching the end game

here, aren't we? does a deal need to be made at this finance ministers meeting on saturday? >> i definitely feel that a deal does need to be made, and i think angela merkel said to the press last night, we've reached the end game. all the comments we are hearing this morning are emphasizing that point as well. i personally don't believe the greek government wants to see capital controls in place. there's suggestions that the eu are talking about humanitarian aid if they an act that point. i think the whole thing could be very difficult. mark: the greek government has to get this through parliament as well. >> yes, one take is that i suspect the opposition would be under certain circumstances prepared to back it. they've been more supportive of

eu proposals than tsipras has in the past. alternatively, he may go for a referendum. that may be one card he hasn't played yet. put it back to the people. mark: what do you do if you are investing? today i suppose you sit on your hands and wait for monday. >> you do. hopefully, if you are investing across europe, you will have very little or no money in greece. otherwise, i think the markets are taking the view that a deal will be done on saturday. that's always in the view that the markets have taken, that a 23rd hour, 59th minute 59th second deal will be done. mark: are we on for a big rally? >> i think there will be a bounce. i think the markets have become bored by greece. i think there will be a bounce

but not a huge rally. i think the peripheral bond markets have held up remarkably well. portugal, spain, italy. that is telling you something as well. i think that markets are taking the view, a deal will be done. we will be talking about this in six months time. mark: thank you. julian will stay with us. coming up, we are going to take a look at why the dax is the worst performing index this quarter. and we are going to talk wimbledon. tennis and technology. and, the $500 billion maybe as iran banks on a nuclear accord to unleash a flood of foreign cash into the economy. we take a look at why the big moment could be years away. ♪

mark: let's bring you up to speed. euro area finance ministers meet tomorrow for their fifth session on greece in just over a week. emergency talks yesterday failed to yield a breakthrough. german chancellor angela merkel is saying saturday's meeting is of decisive significance. she and her counterparts have told their ministers to do everything possible to strike a deal.

tesco reported the smallest quarterly sales drop in at least a year. chief executive dave lewis is battling a sales declined that is in its fourth year. he's likely to face questions about asset sales and the accounting scandal. french president hollande weighing in on the dispute between uber and french taxi drivers. he called the service illegal and asked for its termination. french taxi drivers staged a violent protest on thursday, blocking access to paris' airport. something is rotten in the state of german corporate's according to our reporter. deutsche bank lufthansa, all experiencing missteps lately that have made the dax underperform. let's bring in alex webb now for more. what are the issues corporate germany is experiencing? alex: essentially, a lot of

companies are behind the curve. deutsche bank is the most recent example. the ceo was replaced and the guy they brought in to do a certain about of restructuring -- you could say deutsche bank is six years behind ubs. siemens, very similar tale. their ceo said, we are going to focus on energy and industry, which is what ge did four years ago. the list goes on, companies missing the trend. mark: why have german companies been slower to react? alex: it is clearly a very complex tale./ there are specificities to each company. broadly speaking they think perhaps germany got a little too arrogant. germany has been very successful over the past five years.

perhaps they build up a certain amount of hubris. there are practical reasons as well. everything has to be approved by labor representatives as well as shareholder representatives. that can make it hard to push through big changes. mark: how does this fit into the broader german context? paul: -- alex: germany has got big problems. germany, in the past 10 years did introduce a program of reforms and social changes which were achieved. that was agenda 2010. economists are saying something needs to be done to repeat that process. agenda 2020 or 2023 perhaps. if it doesn't, perhaps the success it has experienced will perhaps flatten out a little bit. mark: alex, thanks a lot.

the shanghai stock market just closing. caroline, biggest fall since? caroline: let's have a look up. i haven't got that particular these of data. we are down the most since january 9 2015. almost the whole year. this is the biggest fall for the shanghai composite since january. but check this out. we are entering close to bear market territory. we are currently down by some 19% of our highs that we reached back in march -- earlier this month, of course. we are seeing a dramatic drop in the value of the shanghai composite. near a bear market. a bear market would need us to fall 20% off our previous peak. clearly, there is concern.

for every 66 stocks dropping only one was rising. that is the sort of money flowing out of the market. it was the attack stocks in particular. this is a composite, and index, that is more than double on the year. let's put it into context, how much we rallied over the past five years. we are up more than 100% in the last 12 months. putting it into context, you are coming off some very lofty highs. many people talking about an asset bubble. morgan stanley saying, don't buy the debt. we are currently potentially heading into that bear market territory. mark: julian is here. julian chillingworth, is this an "i told you so" moment?

julian: possibly. but it is possibly not something to be too smug about. you need to drill down. this is not the tech bubble in the late 1990's in developed markets, where the tech names in that index are trading on 60-80 times, but below that, the industrials and some of the more old-fashioned companies are trading on 12-15 times. i think people will be looking around for value. i also think you need to bear in mind that retail in this market is even higher than in the state. you are going to see a great deal of volatility. this is going to be painful to some people, including some of these entrepreneurs. you could see some effects of the major banks as well. mark: 105% gain over the last 12

months. some advanced. let's bring it to the other side of the world, the united states. the big issue there is when the fed is going to raise interest rates. what is your thought on that and how it will impact equity markets? julian: i think we are seeing a gradual improvement in data coming through. yellen has been clear. watch the data, she said. if we see the u.s. market continued to gain traction, i suspect the rate rise will be sometime in the autumn. sometime in the autumn, and the current thinking is a quarter of a point and possibly more in december. we have to see. the passage of rates now is moving away from where we are in japan. mark: our markets ready or not? julian: they have pretty well

telegraphed. mark: consequences? julian: i think the fear for the bond market and equity markets will be a larger rate rise quicker than the fed has led us to believe. for some reason, rates rose by 50 basis points, and that would cause volatility. i think bond markets in particular should be anticipating a rate rise in the autumn. mark: has qe distorted financial markets? julian: undoubtedly. history will tell you by how much. mark: but it will run and run. julian: and if things were to unravel in the states, maybe it would be reintroduced as well. mark: equity markets returns are diverging by sector and region.

what does that mean for you? julian: we sell ourselves as stock pickers. we have to do exactly that. we have to identify those areas themes sectors. mark: favorite region right now? julian: i still like the united states, but japan, very short-term, you want to be overweight japan and run with it. mark: you've been heralding corporate governance standards there. they are improving. julian: yes, very significant. more important than that japanese companies are waking up to the fact that shareholders want to see profit margins expand. that is a realization that will be good for shareholders. mark: commercial property is something we talk about every day. you've done this presentation which highlights that those invested in commercial property might want to locate the exit point. why is that? julian: central london

commercial property trading on ridiculously low yields is a trophy asset. outside of that, you've seen compression in yields down from double figures in places like some of the midlands cities to eight times yields. i think that probably is reflecting a reasonable gain. it is not the most liquid asset in the world. you need to lock your exit early, otherwise you could be trapped in it. mark: liquidity has been a big issue. does that worry you? julian: very much so. we saw it in the bond market. you think blonde is a -- bund is a liquid market. in corporate bonds, i think that is a growing concern. a number of asset managers have been talking about this and

raising liquidity as rates rivers in the states. mark: where is the natural level for the 10-year bund. we've been almost zero. where will it settle? julian: i think in 6-12 months time, above one. mark: and the dax? we had our man in munich telling us about the troubles. when you rise 30% in four months, -- julian: as far as european equities in general are concerned as long as we see improvement in the european economies, putting greece to one side, you will see that flow through the prophets. consequently, the markets will readjust and move forward from here. generally europe next year looks absolutely fine. mark: julian chillingworth, stay with us. let's to come.

we're going to talk to former grand slam champion and roger federer's coach, stefan at berg as wimbledon is about to kickoff. ♪

mark: let's see how things are shaping up so far. here's a picture of the market. two days of gains, three days of the kleins. saturday is the big day. we've had many big days. a;;ll four major european markets are down. it has been a down day for the shanghai and shenzhen indices. not quite a bear market for the shanghai composite but in 19 days, it has fallen almost 20%. caroline is here. what are you watching? caroline: i'm going for green

for a friday. i'm ending on the best performers on the stoxx 600. k+s surging. it is all about m&a. it is all about being potentially snapped up by a rival in canada. a canadian fertilizer producer. they are offering some 40 euros a share. currently up. they feel that it undervalues the project, the growth prospect for this company. 40 euros doesn't cut it. at the moment, there is no decision under way. k_s currently trading higher. tesco and sainsbury are rising for the same reason. now we know that dave lewis, the chief executive, had scandal after scandal because we unveiled that account in excess

of 260 million pounds. clearly this is a company that is tarting -- starting to turn itself around. we saw like for like sales still down 1.3% in the first quarter but many were expecting worse. the volumes are better. we are seeing them shift more goods. customer transactions up 13%. no update on those sales. they could be bringing in about 7 million pounds. but as yet, tesco drives higher. we get the annual general meeting starting at 11:00 a.m. that is helping the rest of the retailers. mark: caroline, let's talk sport now. what is regarded as the greatest tennis tournament in the world wimbledon, begins on monday.

the world's gaze falls on london. i'm pleased to say the two-time champion and coach of roger federer, stefan edberg joins us now. he is working with sony's device that you stick on the bottom of your racket and it analyzes your performance. thank you for joining us today. >> yes, good morning. mark: would you have won more wimbledon's if you had used this sony smart sensor? >> that's a very, very good question. obviously, technology is here to stay in today's world, and within tennis. it is a great thing to have. you can measure the speed of the ball, and the impact, and the rotation of the ball. there's a lot of things you can learn from technology. it is a fun thing that you can

use for the pros and the amateurs, but would i have one bank more titles, i don't know. mark: how has technology changed the way that players train and prepare for tournaments such as wimbledon? >> i think it has had an impact on tennis, because there's many ways you can use the technology. obviously, through the internet and youtube, you can watch matches analyze the other players. there are a lot of statistics which can be very useful. there are many ways you can actually use technology in today's game which was not possible 20-25 years ago. when i was playing, you could get some stats, but it was very limited. you had to do it in a different way. technology is here to stay and

it is a great tool to have. mark: many of our investors will be fascinated to know that yuko own -- you co-own an investment fund. you manage your own bond funds. how do you combine managing a bond fund with coaching roger federer? >> that's a good question. i follow the market very closely. i'm not managing, but i'm following the market all around the world. it is very easy to do nowadays because of television, where you can watch bloomberg obviously, and through internet and keeping in contact with people. that is an interest that i've had since 50 years ago. something you can only do in your spare time, but obviously, it takes a lot of time to be on tour with roger as a coach but

it is a great combination. there's always things to do. mark: can you give us an idea of how much money the fund is managing how its funds are faring right now? >> well, i think the funds have been doing pretty well over the last few years. two of the funds at five stars which we are proud of. we are very early into the corporate bond market in sweden because of the nasty things that were happening. at the moment, things are doing pretty well. i think we are managing about 5 billion swedish krona, whatever that is inbounds. we are still a very small company, but we are working at it. hopefully, we can grow. mark: do you think you will expand into the sports business? >> we've had some thoughts to

have some sport people on board. we have a new co-owner of the company who played hockey in the national hockey league, and we would like to be in sport, where we can help out athletes around the world and preferably up in scandinavia. i think it is very important, when you have a career, to have somebody look after your money properly. it is hard enough to make, but you have to look after it as well in a sensible way. i have a lot of experience. so it takes a long time to get the knowledge and finally i'm getting there. mark: with that knowledge, can you give us some tips? what is your investment philosophy? what tips have you got for us? >> i don't usually give out many

tips. you have to be a little careful now, with all the things going around in the world. it is very unpredictable. over the long term, things will be ok. there's a lot of things to sort out in this world. i'm always very conservative. i used to be very aggressive playing tennis, but when it comes to making investments, i'm very conservative. the important thing is to sort of have different assets. mark: roger federer is aggressive. he's become more aggressive under your guidance. at 33, if he was to win wimbledon, he'd be the oldest grand slam winner since 1972. but he hasn't won a grand slam and's 2012. does he have a realistic chance of winning this tournament? >> yes, i believe so.

he's still one of the best players in today's world. he's won the wimbledon title seven times before. i believe even towards the end of his career he's improved over the last year. he's looking good going into this year. he won in halle last week. with a little bit of luck and having a decent draw and playing his best tennis, i think it is still very possible. but obviously the competition is very hard. but if there is one tournament he still could win, wimbledon would be the one. i'm really hoping it is going to turn out good. mark: final question. what do you think of the money in tennis right now? if you win wimbledon, the winner picks up a check of almost 1.9 million pounds.

i looked back at the history books. when you won in 1990, you received 230,000 pounds. is it warranted, this prize money? did you feel a bit envious? >> no i don't. i've been pretty lucky to be in tennis. 230000 pounds was a lot of money at that time. when i won my first wimbledon, i won more prize money than another won in his five wimbledon's. now it is a similar position. it is going the same way. they deserve it because they are out there working very hard. why not? mark: great to chat with you. good luck to you and roger at wimbledon as well. hopefully we will get to chat again. stefan, former wimbledon champion. six-time grand slam champion

stefan edberg. from tennis to racing. it is a big weekend for sport. i spoke to alejandro head of the final leg of the motorsport inaugural 2014-15 season. this takes place in london on saturday and sunday. i spoke to him about the money behind formula e, viewership worldwide. what has been the biggest challenge since the beijing race? you've been involved since the beginning. you organized the whole thing from scratch. >> the main challenge has been to keep it going. we just started it. with a place we wanted to get to, but not really a plan. we've been providing a lot. nobody has done this before, create a championship all over the world, inside the cities, with cars that didn't exist.

we were able to work on all the problems and we made it to london. mark: when are you going to make money? >> one of the big surprises has been, many big corporations have joined as sponsors and partners. because of the green credentials. many people were waiting for a sport with sustainability. mark: is it true that some of the sponsors are providing payment in tyers rather than cash? if it is can you carry on like that? is that sustainable? >> they provide tyers and cash. without cash, it is difficult to continue. we have some suppliers that provide in-kind, but if it means a direct saving for us, it is like cash. mark: and you are not going to do an ipo?

is that something that could happen in the next year or two? >> if things continue like they are and we have conversations with big potential sponsors that may be joining, we should break even in a year. then one of the one -- one of the options is ipo. mark: what would it be worth? julian: -- >> this will depend. it is very early to tell. you look at comparables multiply by 10 15, see what it can get to? mark: let's check in on the stock market. a decline of 1.5%. over the week, the athens stock market is trading higher. decline study of 1.5%. still took him, we are going to talk tesco. stay tuned for that. in the meantime, you can weigh in on all today's stories. whether it is greece tesco, or

mark barton talking to tennis legend stefan edberg. ♪

mark: let's bring you up to speed. euro area finance ministers meet tomorrow for their session on greece. after emergency talks yesterday failed to yield a breakthrough german chancellor angela merkel

has said saturday's meeting is of decisive significance. she and her counterparts have told their ministers to do everything possible to strike a deal as the june 30 deadline looms. tesco reported the smallest quarterly sales decline in almost a year. chief executive dave lewis is battling to stem a sales decline in its fourth year. the retailer holds its agn at 11:00 london time. he is nicely -- likely to face questions about asset sales. president francois hollande weighing in on the dispute between uber and french taxi drivers. he called the service illegal. french taxi drivers staged a violent protest against uber on thursday blocking access to the airport. let's get more on tesco. our next guest says tesco is heading in the right direction. she is laura.

good morning. >> morning. mark: do you think tesco is slowly turning the corner the like for like sales were the best in essentially a year. is this evidence even though it is a decline of 1.3% that mr. lewis is turning around its fortune? >> it is encouraging. the market was expecting a 2% decline in sales. the actual decline was around 1.3%. it does suggest that dave lewis' change of strategy is having an effect. things like a slightly reduced product range, but also reduced prices, it does seem to be having an effect. that was the encouraging data. volumes are up 1.4% in the u.k. mark: what else does he need to do? he's got the 21.7 billion

pound debt hole. many say he needs to announce more measures, more asset sales. south korea looks like a possibility. what else does he need to do? >> those rumors were speculation that they could get up to 2 billion pounds. that could be an extra 4 billion pounds to sell those assets. you saw in the last quarter, they already agreed on annual pension contributions. they've taken measures to shore up the balance sheet. they also announced that capex has been significantly reduced. they also cut the dividend. they have taken quite a few measures to help the balance sheet. i think from now on, what they need to focus on is turning around the business operations. ultimately, tesco is a food

retailer and some of the shares perform well. they have to provide a service to customers. mark: does tesco need a rights offering or not is to mark -- or not? >> i don't think they do. they will hopefully shore up the balance sheet. as we've seen today, the operational side of the business is beginning to turn around. it will be quite a long-term turnaround but the results are going in the right direction. mark: what about the accounting scandal? does it continue to cast a shadow over tesco? it could end up in a bind. you've got shareholder damages looming as well. lawsuits are possible. is that troubling if you are a shareholder in tesco? >> i think that is on the

operational side of the business. we are aware of that overhang. you have seen tesco try to improve its relationship with suppliers. there have been management changes and board changes since that time. the focus for us is on the operational side of the business. mark: and the shares, you own a few shares. they are down 24% in 12 months, 55% below their 2007 record, but up 30% since december. would you add to your tesco holdings? >> we added to our holdings last year. we did buy in around the one pound 70 level. i'm quite happy with the results today. i think we will be sticking with them. mark: laura, cheers. thanks for joining us.

still to come on the show a $500 billion may be. why iran's big moment for foreign investment may still be years away. ♪

mark: that's almost it for "on the move." let's take a look at the week. let's call them barth chart -- bnart charts.

this is the shanghai composite closing down today, capping the biggest loss in years, falling to within seven points of entering a bear market. morgan stanley tells its clients not to buy. back in europe, the story is greece. the athens stock exchange soaring. the declines didn't quite erase. pulling ahead were the greek banks. injections from the ecb increasing by a total of almost 5 billion as greece continued to withdraw deposits. finally, back to the 90's for the nikkei, which touched an 18-year high in the middle of the week. it moved up about 20,000 on wednesday to hit a close last seen in 1996. to remind you how long that was, 1996 was the year of the macarena "independence day"

blew away the summer box office, and bill clinton won for his second term. u.s. secretary of state john kerry heads to vienna today for talks aimed at reaching a definitive deal on iran's nuclear program. iran's foreign minister is also due in the austrian capital. elliott gotkine has more. what are we expecting from these talks? elliott: i'm finding it hard to concentrate. visualizing you doing the macare na. you've got the foreign ministers from the u.s. and the world powers and iran all gathering in vienna. they are working towards a deal. just in the last few minutes, we heard from the deputy iranian foreign minister saying it is hard to say when these talks are going to end. don't expect a deal midnight tuesday even though that is the deadline. mark: thanks, elliott.

in the meantime, weigh in on twitter on all today's stories, whether it is me doing the macarena, whether it is greece iran. have a great weekend. ♪

greg is working on the weekend eurozone finance ministers are set to meet that are day for talks on greece. varoufakis says his cut -- country has been to over backwards. >> the country's longest ever bull market has teach. >> taxi drivers in paris stage violent protests, they call the low-cost cab apps illegal. ♪