more after the break. ♪ >> welcome back, i'm caroline hyde.trading. >> bmw on the hunt for batteries. our international correspondent hans nichols brings us the story. how big is the order? >> the statement from samsung is multi-billions of dollars. it depends how the germans behind me celebrate the victory by going out and buying it i ate or highbridge or and i three. look at the growth of electrics and hybrids. they're taking on tesla. they need the batteries to power these cars. the batteries are up to 40% of the cost of making the vehicle. you get a sense of how big a deal this is. -- million batteries electric cars by 2020. these are remarkable numbers. you look at the growth of electric vehicles and they're all going to need batteries. that is good news for samsung sdi. they are the subsidiary of samsung that is behind this. it will be a big deal for them. >> cons in berlin. do you have and i on an electric vehicle, jon? >> i am born to be driven. i still do not have a license. maybe bloomberg will pay for it. >> i bet you are in abusive

caroline hyde, over to you. >> thanks. deal and no deal. i am talking consolidation in the telecom space. we expect the eu to give the thumbs-up to vodafone's bid. that is on a day that french mobile giant orange says it was unable to pursue consolidation in its home market. much more on all the stocks that will be affected. first, back to you, mark. >> that is what we are watching here today in london. european markets just opening for trade. let's check in with manus at the touchscreen. >> here is how we stand in europe. just waiting for momentum to build. one of our best days yesterday in almost two months. 600.over 0.9% on the stoxx let me take you on a journey. this is what everybody is focusing on, the magic number, 17,000, the united states on the dow jones.

caroline hyde is on location.ng russia. >> it looks as if 21st century fox has more swag in the bag. over $7 billion is what they will receive as b-sky-b gets their hands on sky italia, sky deutschland. the question for the market is, good value or not? >> six years after the financial crash, are we back to where we started? we are going to get u.k. gdp figures expected to show 0.8% growth quarter on quarter. that comes out at 9:30 a.m. arguably one of the key projects helping fuel that growth is right here. the biggest european infrastructure project. tens of thousands of people. it comes at a cost of 15 billion pounds but they say they are going to return that threefold back to the taxpayer.

here with me now is in the redwoods, caroline hyde. let's start with you. >> we are at the air show. aircraft are starting their engines all around us. we have had news about airbus. orders see a raft of coming through this morning? caroline, what are you watching? >> it's all about shyer -- shire. the drug's maker based in ireland. today we get the go-ahead. it looks like they are willing to outsource abbvie. it looks like the board is willing to accept such a deal. we are looking for the share price to rise even more. now i am moving across to tel aviv with elliott. >> it stays seven of israel's operations. hamas sent a drone from gaza into israel today. shot down by armed forces. policy view of the earthly better hold that palestinians are fleeing their homes. >> it's going to be a busy week for european markets. you have got unemployment in the u.k. on wednesday. you have janet yellen. she speaks tomorrow and wednesday in her semiannual testimony. i will be watching that. here,have equities rising being driven by the shire news. ba

here with more is caroline hyde. we have to talk about the supermarket but first we want to talk about the pay. is it fair what he is getting? did he live up to the money? >> 3.9 million pounds. it is down 22% of what he got last year. he delivered record profits but it is being called excessive. he waged a $1.7 million severance. it is not like he is clamoring for the money but he is the only supermarket chief, the only one tothe big four in the u.k. take a bonus and it is basically his competitors. clearly, we have a little bit of a furor coming from the investment research consultant. it is one of the loudest voices here in the u.k. are advising shareholders to say no, do not allow justin king to walk off with this. they call excessive. this is a man who is stepping down handing over the reins to mike gupta. you think about 10 years ago, the morale was for recklessly low -- was her rent is below -- was her rent this lady karen horrendously low.is >> given a kick in the teeth by cutting his pay. >> who is to say wh

caroline hyde is poring over details of her story.cote is with us as well. >> i'm going to talk about what is one of the most astonishing scenes people have seen in mobile dan in years. -- wimbledon. serena williams unable to hit tennis ball over the net. she had a complete meltdown. a viral bug. she literally could not get the ball over the net and couldn't even bounce the ball. a one-point, the umpire asked if she wants to continue. want to continue went back on and lost another game. it was a complete implosion. people were shocked. it was difficult to watch. she wept on court and she and her sister conceded. some of the best have dark moments. >> we'll come back to tennis any moment. >> this is pretty amazing. this is about tinder. this is a dating app that has gone beyond viral. [laughter] >> and thinking about how to go from tennis to tinder. [laughter] is quite female friendly. women have really taken on this app. actuallye women is filing explained -- complained that she has suffered atrocious sexual harassment. she is dating

here with more is caroline hyde.ss, as smooth it seems. >> it was not because they had to keep a minority stake in slim fast and did not get the price they wanted. the puns are just two easy. unilever slimming down, tightening its belt, setting off what is slimfast. slimfast has been a brand in decline. in the 1990's, it dominated out there. it was the number one player in the united states. the came along the 2000's, atkinson's diet, other diets. we do not want to have the its valuet snacks so took a hit. it was bought by unilever for about 1.4 billion pounds. we understand that they probably wanted about one billion pounds for this asset. unlikely that it got that. it sold it for an undisclosed sum. stake.kept a minority they had to take charges against this asset as well. the value of the brand declined. clearly not quite as tasty as it used to be, but they are doing what they said they would do, getting rid of this brand, which is what they planned to do by the end of the year. the chief executive came in and sai

just coming up i am joined by anna edwards and caroline hyde. roline, rupert murdoch, time warner, a massive aid. could it go even higher? he is not going to walk away. >> he is not going to walk away. understand.we it could go even higher. we are expecting another bid to come. he has really started gathering force in terms of cash. interesting game of musical chairs going on, and he could be cashing in on sky deutsche and sky italian. they are close to offering what could be $10 billion for a 50% stake. this would make the european player more powerful when developing content. it gives more cash to up its bid. up to get itso hands on time warner. it's all about production. foxs going for 21st century >>you're going for content. caroline, thank you. a moment of silence in moscow for the victims of mh 17. we will have more on that when we return. >> welcome back to countdown. it's time to get a quick look at the fx market. one dollar 73. this is going to be a busy week for this trade. we have u.s. inflation data due. janet yellen, are you listenin

i am caroline hyde. joining us is ryan chilcote. the european numbers seem to be good and they are raising their forecast. they say that there was an increase from before. why they are seeing it. it is cheaper and no-frills. >> they its present up, to be fair. >> it is interesting that they just call it here in europe. outside of europe, it remains. i have not tried it out myself. at 7500 euros -- >> invite impact all of the kids in it. can pack all of the kids in it. units purchased by that and i guess i could say i have one. badhey have a bit of a reputation. >> it cost me $3500. it has an alarm system and a cd changer. that is a good value. >> they say they are sticking to their targets and are increasing delivery overall to earnings. >> the european car market will rise this year and more than the original. now,riginal was 2%-3% and it is 3%-4%. this is countering some of the problems in the market and we talked about russia. aguy named anderson sat down few months back and told me that the russian car market may fall this year.

caroline hyde, what are you watching today? apple beating analyst estimates and we're seeing an improvement in profit overall. all about china. 28% growth in china, pretty phenomenal taking even tim cook by surprise. forecasts are not quite matching what anyone had expected building only about 6% to 7% in terms of sales. meanwhile, microsoft promising big in terms of cost cutting continuing. we saw profits fall for the previous quarter so nadella really trying to redo the company. >> it's all about sports today or not. >> the commonwealth games getting underway in scotland. the leader of the scottish national party telling me in an interview yesterday that he's giving us all the signs that he is digging in on the pound. he sticks to that as plan a. scotland will keep the pound, he says even if there is a yes vote and dependent on september 18. today, we are looking ahead and we will bring you further details from that interview. he is sticking with the despite osborne,that george chancellor of the exchequer, and others say he w

lcome back to "countdown i am caroline hyde.ado" attracted an enthusiastic following online and became a surprise hit. will premierework the inevitable sequel. it is also the debut of a new home theater technology developed by sci-fi. we explain. obviously, there were so many unanswered questions to last year's sleeper hit "sharknado" that the sci-fi network decided to release a sequel with this time, they are bringing back rate hot with action not just to your screen but also to your lamps. perhaps i should explain. phillips likable, and there are three interesting things about it. it's an led bulb. it can generate any color you want. it has built-in wi-fi so you can control each bulb from an app on your phone. what do flying sharks have to do with this? the network is taking advantage of the wi-fi connection to coordinate the lighting in your room to the action occurring in the movie. cyfy's second screen app can listen for audio cues and then send instructions to the bold -- bulbs. your room may be cast in a blue light when y

let's talk more about the story with caroline hyde. were good, let's ru through how good there. like 12% on a le to as. that is far ahead of its peers in the luxury sector. this continues to outperform on reasons that have been well trodden for the last few years. on asia, china and hong kong, the americasand the digital push. thecompany has broken barriers and digital compared to riva. it has embraced digital, got on social media. it has far moretwitter llowers y other brand brands. they have set up new ways of selli come particularly tir beauty products, they have gone directly to azon and alibaba t o get on there, start competing. make sure other, faux burbry brands do not sell. the youngeraced generation, locking in the a $20tional buy perfume, move them up to the $1000 trenchcoat when they are older. studnt welin terms of sales, not in terms of prof. tm, 12% hurting versus the dollar in 12 months, hat cld hit their bottom line by about 55 million pounds. in sales they e outperforming. paget isdmr. rberry a marketing company or a c

caroline hyde been talking to unilever ceo. the data has been interesting because the market was short and to the eurozone numbers we have had. we had the aggregate number coming together in terms of the manufacturing data. and services. both have risen. let me show you the euro. i want to show you this, because the market -- euro-dollar. the market was clearly sure going into the data, particularly the german number. thatan see the spike resulted from that. so the market was short. therefore you get a much bigger leg higher. we are still out of the range. 1.3474. let's get an idea of what these numbers are telling us. that, we need to talk to hans nichols are international correspondent in berlin. >> i'm in berlin. good morning, where the number was strong out of germany, soft out of france. when we get the composite number it is off the charts. pmiame in at 54, the number that has services and manufacturing. the consensus estimate was 52.8. so a full point ahead. that means there is a lot of strength in the euro zone outside

caroline hyde at the hackers on the runway conference in paris.n "the pulse," it is the first day for ford's new california. -- c.e.o.. we'll bring you all the details after the break. ♪ >> welcome back to "the pulse." let's take a quick check on the currency markets. we are looking at the turkish lira. this is the five-day chart you're looking at. as y has declared erdogan the president candidate. now for more on the news coming t of turkey, let's head over to elliott gotkine. he is speaking now. what are we hearing? >> well, i find this a bit of a pitch finally revealing turkey's worst kept secret in that he plans to run for the presidency. that he would be president for all turks, not just one particular group if he is elected. saying that he would make turkey succeed and thrive in the future. the prime minister has had a few issues ranging from corruption allegations and violent protests in turkey. >> elliott, you're also watching israel, some very upsetting headlines over the weekend. the bodies of those missing teenage rs have been found. wh

here with more is caroline hyde.nolds has been reported to be in talks, it would be combining the second and third biggest tobacco companies. is this imperial trying to pick up the scraps? regulators will force it, the scraps are expensive. brands that currently are held by reynolds at the moment such salem., winston, i am sorry if i am pronouncing them wrong, i ain't no smoker. u.s. market is what inhaled tobacco could pick up, $5 billion to $7 billion. much we understand imperial tobacco is lining up in terms of funds. helped a very small degree by sale today, they are selling a 30% stake in a spanish this region company. this is about a much bigger deal going on in the u.s. lorillard.nolds and they have been debating teaming up these companies to have the number two player, 13 billion dollars worth of sales. brands like camera, new poin pall mall. newport, british american tobacco holds 42% of reynolds. they need to ok the deal for reynolds to buy up lorillard and become a big competitor. froths a lot of u.s.undin

joined by mark orton and caroline hyde. -- mark barton and caroline hyde. was, iteal that never did not go ahead with its merger. we got second-quarter figures of how this company is dealing on its own. it could be a troubled second-quarter. there is concern as to how sales is progressing. that makes andny designs the chips. >> i am not feeling smart enough already. at 2 a.m. wake-up call. i am not talking about stephen jerod or english cricket. i will be talking about ig group which is the largest spread betting firm. it has a market cap of 2.1 billion pounds. --res are down seven percent 7%. may the training had been subdued since march. low volatility, we know how important volatility is to the spread betting firms. a big spike in volatility. vix index spiked. an increase to see of eventsity because in gaza. we will see -- talk about the results. ministers are arriving in brussels. what can we expect? nice it is toow have mark back? relaxing he had such a vacation. there is a sense today that the sanctions might not be quite as juste as we thought yester

for more is caroline hyde.is is the hand from this failed merger. >> 35 billion dollars is what it was supposed to be. it cannot agree who would lead this juggernaut in the advertising space. alonegs find it sells all -- companies find themselves all alone trying to work. the strength of the euro is bringing revenues home. it did not have such an effect on the bottom line. but also starting to see even though with a new business, and american express, companies are putting campaigns on ice. they are not managing to see particular growth in north america where more than half of their sales are. extremely cautious. rightany really worried now. >> it is interesting what it means for other advertising companies. they have been distracted by -- over the past 12 months. any sign of how they will rectify? >> they are promising to get the rectifying going quickly. they are trying to reestablish themselves in the new environment. you have 42% growth in the digital revenue. it's a new landscape. the media and advertising

caroline hyde has the details. good morning, caroline. >> good morning. company that a few months ago, they're saying that they are permitted to this country and are looking for organic growth and investing in manufacturing over there. also, acquisitions as well. there really are looking to continue to grow the market share. is that still that case? of course, it was predominantly dutch people. serioustics is becoming in the netherlands. clearly there he is concerned. many are saying enough is enough. of maneuver -- of difficult is a very line to walk, isn't it? tothey have been saying thate business strategy, seems to be the focus to a large extent. as we look ahead, there are going to be tough questions about how much exposer. the political pressure seems to be mounting. >> on one side, you've got the politics. , russia'ser side economy is not going to be sanctionsthe current that will be imposed. currency in which -- remember, this is a fast-moving company. this is personal care. up, they willoes -- suddenly it will be that much more expensive. have ru

i am joined by caroline hyde and ryan chilcote.he janeted about announcement. >> oil bidding analyst estimates. feeding off it until we got last night, beating -- saying a bit of a troughing. asml equipment which makes the chips for intel. alibaba.lory from up managing to wrap advertising. working and ibm together to create apps. these are companies that have been feuding for a good three decades. bowl adveas the super rt. liked it.rs bye-bye library. >> all that and more. we are talking about china. they have released the latest check on the economy with economic growth accelerating. better than estimates. is this an economy that is restructuring to you? i think we have to dig deeper. the headlines figure 7.5%. how they got there is another matter. you look at the dear -- the year to date. pricing that the country would be expanding. the median estimate was 7.4%. the expansion quickened the first time in three quarters. two opposingg at forces. we have this pulled down by this big and sharp drop. on the other hand you have what ec

ryan chilcote and caroline hyde are here with the details. this is a nice big move. apple, ibm, finally we get the crossover between business and personal life. >> interesting that these are two companies that have been feuding for three decades. 1984, the mac comes on the scene. had, --cades that ahead, we know it is all about apple. it is slightly better for ibm. in a nutshell, they will make business apps for iphones and ipads. the likes of caroline hyde can now use their iphone or ipad for more than just browsing. she can say, i won approval for this for her posh dinner. if we had more businesslike things going on, i see something selling well over there and i want to put in a big order for that. that is something people are not doing in the mobile space right now. siemens, their employees have iphones. why wouldn't ibm want to get in that space? want you to put these earnings in context. this ibm deal with apple, that is less devices. >> so much growth going on in mobile at the moment. it is interesting that we have intel beating estimates. asml, in the food cha

caroline hyde.nvestors are welcoming the news. we saw a ruthless shareholder meeting and now we know the results. >> at that time, it was only in the earnings season when they said give me time and asking for a more relaxation from investors. and then they realize what they called a fresh perspective. they need to dave lewis and an outsider from tesco. the first time in tesco's history, the third biggest retailer in the world after walmart. 500,000 employees that have to be managed. they have changed a management. the language they use in a statement saying the chairman saying it is building on strategy and changing management . they like the experience lewis is bringing. 28 years. that unionthings provides. it negotiated with tesco over the years getting products. he knows tesco intimately. new chief financial officer on the board. now a new chief executive. a new dawn. --ntually a billion up round upgrades inund of stores paying off. >> [indiscernible] b -- if you came from mars, you are almost pr

is europe'sthat business correspondent caroline hyde. caroline, i guess we have got huh?ales down by 1.5%. there was more than we had estimated when we're looking at all the analysts addictions. of concern is clothing. remember, the x-ray stripped out clothing. they have, but it is not doing so well. clothing, was he like for like -- there have been m&sw teething problems, .com. we have seen womenswear picking up. julie -- it is clearly children's clothing that is not been flying off the shelves. they have been focusing on womenswear particularly. they just had new ones at the shelves in july. , they're desperately trying to coax some sort of feeling of security that they are managing to foster a turnaround. clothing is still down. general merchandise is down by 1.5%. that is a concern. they're sticking to their margin targets. they say would you are focusing on profits now. they really started hitting the sales panic button before many of the other high street retailers did. that aid into profitability. they're not trying to stop that. they want to try and foster growth

caroline hyde joins us now. time is be that this lucky? >> looks like it could be. up 35% from their initial bid for this company. first of all, they offered 39 pounds. today, we understand they are .20. for 53 that values them at more than 31 billion pounds. a lot of money being thrown at this. why? it is about the corporate tax rate, being able to ship your address to the united kingdom. inrently, scheier is based ireland for tax purposes. its central headquarters are generally in the u.k. more politically palatable to move to the united kingdom. bbvie gets to reduce its corporate tax rate. that is probably why they do not want to come up quite so much. >> and they are getting their hands on prize the drugs within the scheier family. -- shire family. but the clock is ticking on the deal. is verye moment, abbvie dependent on one drug for rheumatoid arthritis. almost half of their sales come from that. shire is about rare diseases, adhd. you are getting diversification. you are also managing to put some of the money you have a broad to work rather than bringing it h

here with more is business correspondent carline -- caroline hyde. not everyone was anticipating these numbers. >> sales up 13% as well. this company was really hurt by its exposure to the united states. the second biggest software services company, they design software programs and offer the maintenance, the service. when you are so exposed to the u.s. that they not only impose visa restrictions that have the downturn in terms of investment, profitability and sales ebb away . 65% of sales come from the united states and the rest largely in europe. they seem to be turning things around. they brought back their previous chairman and he seems to have a hold on costs in particular. they have one contracts with orange, boston-based easton bank. these are really sizable chunks of business. >> they already have the likes of toyota under their belt but the show they can start luring companies back in. the desire, what we want from a software services company is changing and that's the challenge going forward. that they beat expectations does not mean the ne

he with me now is manus cranny and caroline hyde. >> key events.etails of lending to the real economy? ist is what the market anticipating we will get from mario draghi today. also a little bit of clarity about what the language of forward guidance is. ensuss the consic estimate for jobs. >> it sells 3 million light bulbs and a quarter of a million gnomes. we're going wild for powerplant. it has opened its first store in spain. -- we are going wild for poundland. >> european markets just opening. let's check in with manus cranny. >> i do not know whether i will get the garden gnome or not. equity markets at the moment just beginning to start trading. it is down to mario draghi. changing rates. where do we go in the language of for guidance? yellen last night making statements in regards to not needing to raise rates or use monetary policy to burst bubbl es. it is dovish. eurozone services. let's get into one or two.

there with me now is jonathan ferro and caroline hyde. hans nichols.art with you. -- >> the big is is in. the focusered it -- is in. they delivered a speech. the government. you want budget flexibility. forget about it. you have a warm to -- you have reforms to get through. >> thanks. barely over delivers. burberry. digital dominance helps drive the sales. is it enough to calm concerns about the hefty paycheck? i will be back with more a little bit later. >> thanks. we'll will be looking at airbus. new plane. could be changes to the a 330. new fuel efficient engines on the bottom.

here with more is business correspondent caroline hyde.ce again all about demand for natural products >> all about going natural and we all want to know we're not putting chemicals in our body and where our meat is coming from and the providence of what we eat and drink so going natural has become in vogue so when you're drinking a flavored beer or having a daiquiri or other drink, these are things some might be quite often find have flavoring from wild flavors and vitamin waters and infusions. a lot of these drinks and food types are being provided by natural ingredients by world flavors. they have become hot properties. that's why we are seeing those. there was a bit of a bidding war going for wild flavors coming from the japanese. owners said what are we going to do with these companies? price tag, 1.5 billion euros. now 2.5 billion euros because there were so many that wanted in. they have japan's iing them up sodium gluke mate which isn't quite natural. >> i never thought capri sun which is a wild flavors backer. always thought that w

our correspondent, caroline hyde, has more.have raised money. >> 10 times the amount of two years ago. $10 million helped them expand into 11 new countries. they were in france where they were founded. he moved into russia, germany, italy, spain, you name it. investors have another round. this is 10 times that amount. $100 million. the targets are bigger. it is getting into latin america, asia. it is looking outside of europe and into countries that have a plethora of smartphones. you can share cars and have a need to reduce costs. this is a fascinating company, set up in 2006 i a french man. a french man and it is sharing economy. he had to get a lift with his sister because he could not get on a train. he noticed that all of the cars seemed to be relatively empty. why not fill them up and cut your cost? lacar. up blaba you can socially network and see who is driving the same way. you can ensure that this is the person you want to that -- sit with. there you go. >> give us an idea or a sense of how much cheaper it is to car sh

caroline hyde reports on how it is changing landscape. >> london is growing fast.ther million people are expected to swell into the city in the next decade. the result, property price, commercial and resident rble are increasing. there is one phenomenon which has pushed prices like no other. cross rail. the network cutting across the capital. >> 500 to 1,000 meters around the station. we will increase property values by an average of 18%. >> and here's why. cross rail are connect isolated parts of the city to the center of london's shopping and business district. >> it is cyclical. >> we have researched the effect. >> we've been monitoring prices. we have seen prices outperform in those areas compared to -- > houses near cross rail stations have gone up 30% in value since 2008 and are forecast to rise another 40% between now and 2018. but it is not just home owners rubbing their hand together. retailers are also expected to benefit. cross rail purchased large chunks of land for their new station making them within of the single largest property developers in london

our european business correspondent caroline hyde is there. caroline, what is this all about?od morning, mark. called hackerst on the runway. it is all about getting luxury companies to embrace the digital world. your venture capitalists here, new start ups. it is all run by a company called the family. they get workspace for startups. . i am joinedrking by one of the brains behind the family. give us a sense about this event. to slow are luxury companies embrace the digital age? >> the family has a goal to invest in this industry. we noticed one year ago a lack of luxury companies. we asked ourselves why a country and france has no startups not many at all in the luxury industry. this to bring together these two worlds that are now very opposite. these brands see the internet as a threat and i think that is a mistake. we saw it with music and spotify. there's no guarantee that will not happen to luxury, even if now they are making a lot of money and being profitable. we have talked about an english company named bert berry which is gotten into the digital ryace quickly -- nam

here to tell us why is caroline hyde. caroline, why is there so much controversy?he got paid a lot over the last 10 years. is that the reason why there is rancor? >> i think it is about his last paycheck. this is a man who is going to be paid more than double of any of the other rival grocers. morrison's., justin king is set to take away 3.9 million pounds. lower add, that is 22% than last year. edis is a man who has waivw his 1.7 million severance payment. head of aonly grocer to take home a bonus. maybe he should. he saw a record pretax profit. maybe this is for a man who should be taking home so much pay. there is slight concern because the intention and investment research consulting firm, one of the biggest advisory groups to shareholders in the u.k., they are saying this is excessive. they are advising that shareholders vote down this paycheck. this is a man who has driven sainsbury's arguably from a and has turnedne this business around, made it far more efficient and even giving back morale to the workforce. it is arguable as to whether he should be coming

caroline hyde, what is this about?ingly, if you are it's the weekend, maybe i will have a flavored beer, maybe i will have a daiquiri, when you have those drinks, the reason is this company, wild flavors, could be behind the flavors you the fruity, some of looks from the strawberry daiquiri because it's all about -- >> you have mark's number. >> line them up. >> why not, mark, you wild child. you have food ingredients across 30 countries. what this is also playing into is the trend for natural ingredients. think of what we have seen now for tea-infused drink's, all naturally sourced. wild flavors made the first ever german naturally carbonated fruit juice strength. it is now present in 30 countries. because of this trend, this is why archers daniel midland wants to expand overseas. on theso want to cash in desire to feel we are putting better ingredients into ourselves and want to have natural realm at aerials. we are drinking drinks and eating food. interestingly, it paid up for it. his is 2.5 billion euros. -- this i

fear is caroline hyde. talk about pay. >> this is a man who might be out for 3 million pounds. that is down on the figure. rivals andoubled the all of the key competitors. clearly, why does he deserve so much more? does and heat he posted record profits. he is also turning down $1.7 million in severance pay. he is a leader of a grocer to take a bonus. it is the perk and the pensions. that advisory group says this is excessive. is aars at the helm massive turnaround story. and moralen decline was low. he was on board and started to improve the situation. many may want a pat on the back and it is something that is concerned about. >> some could say that we could tescothe situation like when things went from bad to worse. there is news that king has made and triangulating targets that is a reflection that he is leaving the business and facing challenges. >> you are right. sales deterioration. it is eating into market shares. we know the story. what is so interesting is the way that they are tackling this. it a

here is more is caroline hyde. has had a lot on their mind. it is optimistic. >> that are off alone is the picture that the chief executive tanks. >> who needs that when you have a pipeline like ours. they say that again and on the top of my interest was emerging markets growth. they are saying that emerging markets is no longer a panacea to the currency and tensions in russia. emerging markets is the place to be in china and they see the emerging markets growth. so good were the numbers that they are raising their forecast and they say it is going to be the same as last year. they said they are not going to until 2017.s back they bring it forward and they are going to see it once again. have onethat they now of the most exciting pipelines in the industry and 114 projects. remember that it is about experimental drugs and fighting cancer. they want to pay and they want need a that they do not partner like pfizer. they say they are going to and the sales by 2023 company has a long way to go in the next decade. >> you say they are better off alon

i am caroline hyde.r we had the largest maker of business management software revealing sales rose 4%. operating profit came in at 1.2 4 billion euros. basically in line. the chief executive bill mcdermott joins us now live from waldorf in germany. thank you very much for joining us. first, your big push has been about the clouded how sap is moving to provide business software online. sales up more than 30% in that area. you are the old guard of licenses. how did you get investors to get excited about the clouded not worry that your license revenue is falling slightly? >> we have a vision to run simple and that asian helps companies radically simplify -- vision helps companies radically simplify the way they run enterprises and cloud is the logical step in simplifying your business. that is why it grew 39% and we raised our guidance for the cloud for the year. one very important point for investors is our core business, the traditional software and greware related services eight percent in constant curre

here with me now elliott got can, caroline hyde.lliott, let's start with you. >> the united nations security call for an immediate cease-fire in gaza. an israeli spokesman tells me they are not firing from the air. he wouldn't call it a cease-fire. >> satellite images it says roof russia has been shelling a unit from its side of the eu gathering tomorrow. the german chancellor saying eu must act this week. we aren't going to look at russian companies and how this will affect them. >> i am looking at potentially another ipo and another share sale brewing and the united kingdom. if you need some painkillers after the killinth

caroline hyde is here with the story.of bad news. >> years of bad news and this is the first time in years that they are back in the black. ask yourself a question. eurosring in 27 billion and how are they not profitable? are showing that they are. this is a boost to credibility in the turnaround and why were they not profitable before? that is because the liver it was slowing and many cars were waiting in the dealership. >> yes. inventory. >> it was huge and now, they say they have control. they have cut the cars out there and theyalership closed factories. they slashed the workforce and they said they did not need to make as many models. they used to make 45 vehicles and they say they will have to that. they will make 26 models. they will be more luxurious and charge more for them. and theyt of a unit have to cozy up with china and get in with the chinese manufacturer to stop being so focused on europe and expand to diversify. in will see all of this three years of pain. you are going to see a turnaround and operating i

. >> caroline hyde is very excited by it. let's keep talking tech.vice tab slet the key for the future of the company. an elite team of designers, engineers spent years to equipped to. so why has it struggled to sell? cory johnson is the first journalist to get a look inside the surface labs. >> inside secretive surface labs at microsoft, you see one thing. the original design was a big change from microsoft business as usual. >> this is not something where it was within our d.n.a. 20 years ago. it is not in our d.n.a. 10 years ago. >> hardware design with improvement over many years. >> this is not one of these things where we just started nine month ago and came up with a great idea. the design tools are a sight to behold. like this cnc machine. >> you're starting to see it come to life here. this is our model shop. >> the model shop uses all kind tools, 3-d ower printer, acrylics, metal. microsoft's first tablets surfaced in october 2012. it led to a $900 million write-down. product has gotten better and market share, still low, is quietly growing

i will talk to caroline hyde and a couple of moments. in the meantime, you can follow me on twitter. >> welcome back. on the jonathan ferro. ferro. jonathan they are lower and marginally lower. expect decision day. that should tell you something. it is about sanctions. have they got a bite? the market reaction is miserable -- minimal. >> let's have a look at some of the big news. i want to focus on the upside after three years. back --impact in the back in the black and this is a major boost to the credibility of the turnaround. the leaderboard and the stoxx 600 is operating. have positive cash flows and have taken so many steps to rein in europe. they are closing factories near paris. about airbus? the shares are higher by almost 4% and you see an uptick of 10% that delivers more aircraft. they saw significant increases and they saw net new contracts. still, not much love out there. there are civil aircraft. let's have a look at the worst performers this morning and the oil companies have significant exposure to run out. the key one as

for more, here is caroline hyde. merchandise sales continue to fall, is it as simple as less people in the shop? >> less people online as well. they regretted their online presence. there were glitches interest review should. a lot has been blamed on the new relaunch of the website. pounds 150 million project. blame is their right now. how much longer are investors going to put up with this? it is a market that is an improvement. the british retail consortium is up 4%.% -- how on earth is marks & spencer posted a decline? a decline in clothing in particular which is where they are putting their new effort. that design teams. wear is going is the key statement. everywhere else is declined. they are trying to update all of the shops an update the designs and the website. it is not working right now. >> clearly there's economic recovery under the you came as some are even calling it a bowl. as somet -- in the u.k. are calling it a boom. i look at m&s and i say forget clothes and go to food. >> that is what they are tryi

caroline hyde. european bloomberg correspondent. let's continue in geneva. we are joined now by the managing director of the global luxury goods division. good morning. love. the numbers we are seeing this arning, presumably, there is bit of a hangover from the air out. is this a true reflection of the skill set? >> i think the numbers we are seeing today are certainly the results of a number of initiatives and a strategy that has been rolled out over the course of the past 5-10 years. mr. christopher bailey. this has been a continuing effort and we are certainly seeing the results of that today and not being creative in this. >> do you anticipate seeing more of the same? or, do you think he will get creative. -- creative? do you think we will see more of the same? or, do you think we will change the trajectory of the business? seeing thewe are same and the communication from the company is business as usual. we have a strategy that will continue to execute against an the only difference from what was announced before was the black and blue licensing agreeme

for more on that, caroline hyde. >> earnings galore. they are across the board. majority, 60 5% of companies have beaten sales. more than half, 70 separate send have beaten in terms of profit. 77% have beaten in terms of profit. why so much green when you have concerns about sanctions? we know obama got together in a videoconference with david cameron in the u.k. and french and germany and italy. devil in the details. sanctions will be leveled at russia, so far we are holding on 100 trading higher. clearly, the volatility is still significantly low in europe. what if? where do we put the money? and trading very low. oil not moving. brent is is where trading. money going into the dollar. so many banks this week. we have a flurry of the u.s. a data coming out. consumer confidence today and for the second% quarter. that comes out on wednesday. and the federal reserve rate decision on thursday. and will continue to trade higher on the dollar, starting to push the lower -- the euro lower. will we seedraghi, exports lower? a look at the british pound. lower against the

matt campbell and caroline hyde are here. where are we on the price?et to it is not a done deal. 55 pounds 20 per share. 31 billion pounds for shire. that is 35% higher than the very first offer dated -- they put i n. why it is so attractive to abbvie is the corporate tax rate. they have money abroad. it is a diversification at the moment, abbvie gets half of his revenue from procedures for treatment of rheumatoid arthritis. once they diversify, what do they get for shire and disease and treatment? wasdrugs for hyperactivity a it is a win-win situation. that is why they keep upping the deal. shire has been brought to the table and it looks like the board will back it. vehement heas very wanted to stay independent and be given the opportunity and here we are. they could capitulate cash. >> as they are in it for the money clearly. what else? the dam did burst last week over the weekend. the latticed -- in the latest offer seems to have gotten shire shareholders to put pressure to table. the they "should in a new york on thursday and friday and over the w

let's find out what is going on with caroline hyde.ome people have been suggesting that clark was going to have to go. he may had been given a little bit more time, but the last shareholders meeting was a brutal affair. >> it certainly was. the reason was because sales were continuing to fall. chief executive of tesco for 3.5 years and he eventually hand over the reins in october. he has been at tesco for four decades, finally agreeing to leave, handing over the reins to dave lewis of unilever, a man he worked closely with. and ther of dove soaps like, a company negotiating with tesco. clearly, investors wanted to see a change of the guard. they wanted fresh perspective, is what they are calling this morning, coming out of tesco. up to bes was lined taking over. we knew he was one of the favorites. use to be at tesco and took over the likes of dixons. other names on the list were internal candidates such as tim mason. clearly, they wanted an outsider, a breath of fresh air to help turn this company around. only are we having use of a n

plus, caroline hyde is watching the chipmakers. ryan, start with you. lk us through this big deal. ryan, sorry about that. problems with your mic. caroline we look at the yuan asml. in line with estimates. full-year results perhaps something to worry about. >> you are right. second-quarter figures pretty much in line with analyst estimates. we saw sales at one billion euros. why is the stalk off by 1.5%? it is all about the outlook. sales not living up to expectations. let's remind ourselves what asml does. it makes the equipment that makes chips. the likes of intel, gsm, samsung, are there, the people that buy these products. they are not buying the new machines as quickly as anticipated. perhaps they are not getting the new phones with a powerful chips as quickly as we thought. small chips, more powerful, that is where the investment of asml has been going. they are making these new extreme that make ultralight. a few of those orders have been postponed until 2015 because the demand isn't quite there. just a few of the chipmakers putting off those orde

european business correspondent caroline hyde.aging to ramp up the click. >> the price that they can charge per click, the money coming in is actually falling 6% overall in the second quarter. they drove them up by 33%. managed to offset that deterioration. the reason they are getting cheaper is because we do so much mobile now. everyone's to pour their advertising into the smartphone but you can't charge as much. charge,r is what you for the price of a smartphone at versus a desktop. because the smartphone screen is so much smaller you can do far less with it. the interesting view is, will it become more expensive in the end? think of what you are eventually going to get with a smartphone advert. you have location data. they will see that you are nearby a certain restaurant. they can push out certain adverts that are bespoke to you. any argue in the long-term they will be more lucrative than the pc. for the time being, they have to ramp up the amount that we are clicking. >> i am always very, very concerned about location devices

let's go to crossrail where we find caroline hyde. over to you. >> thank you very much indeed. am pleased to say that i am joined by the chief executive of crossrail. we are talking about of course -- we have got growth in the u.k. and you say this project, the biggest infrastructure project in europe, can add to the economy. how is it adding to growth? >> good morning. this is one of eight new stations that forms crossrail. 120 kilometers. this is a phenomenal program from london. it will bring 10% extra rail capacity when we open. 1.5 million people will be within 40 minutes of those key districts of london. you can break that down in a number of ways. the extra capacity reduces theestion, improves possibility of business in london. there have been just 30 applications for major development. almost 3000 new homes. this is typical of the confidence that is bought by well funded infrastructure projects. >> the things that you have learned, you had to avoid ancient burial site, you had to tunnel underneath us while being less than a meter from the northern line. are these techni

--caroline hide joins us hyde joins us to talk through these giants. >> some interesting products.'ve had doing not very well in western europe. in india. 50% increase in china. not enough to offset the western european decline, but making inroads into emerging markets. tim cook said he was surprised at the uptick in china helping the iphone broker a deal with china mobile. but the iphone is the standout product. them tech giants. $37 billion in sales. that is more than jordan, bahrain brings in in a year in terms of economic output. this is a juggernaut. and it continues to do well. shares up 18% so far this year. many were invested that tim cook would turn this around and that iphones would fly off the shelf the -- off the shelf. -- >>second and della, satya nadella, let's talk about things -- talk about him. he changes things and move the business forward. investors feel that he has a long way to go to fully satisfy them. >> it is a huge company. 18,000 jobs going, 12,000 in nokia. the company,ty of it is not much. clearly, this is a huge the money that became too large. they ar

is our european business correspondent, caroline hyde.s pound land doing so well are we all becoming bargain hunters? >> we are. that is what is the most fascinating thing about penland. i go quite crazy in it. flashing santa hats which last for like 48 hours. over christmas, they sold 3 million meters of tinsel. they sell 3 million light bulbs, 4 million bags of sugar. 18 billion cans of coke. quarter of a million garden gnomes. they are across the board. they sell everything from cleaning products to novelty items. one in five of their shoppers is from what they call the a-b earnings category. that is the most affluent, the biggest earners. they are the people going to pound land. sales are currently up 30% last year. profit up 23%. they are expanding. 500 stores. the u.k. alone can house 1000 stores. they are looking into spain as well. we are becoming savvy across-the-board. >> i don't know if savvy is the right word. if we are all buying garden gnomes. >> why would you want that many? >> it doesn't matter if it is actually useful stu