another profit warning for tesco.executives suspended at the grocery store launches a probe into an accounting error. >>> and the french group sets up plans in a bid to reach the cash flow goal. >> and the french prime minister meets with the german chancel r chancellor. >>> deutsche says the u.s. still deserves to keep the top credit rating. on friday the agency confirmed the aaa rating on u.s. debt with a, quote, stable outlook. but says the u.s. can take on more debt than other countries because it has the world's deepest capital market. but they say the u.s. has the weakest economic policymaking as seen by recent showdowns over the debt ceiling. >> the g20 is close to outing an extra $2 trillion to the global economy. the organization called on europe to do more, u.s. secretary treasury jack lew says this is a top priority. matt, he also spoke about philosophical differences between the u.s. and some of its partners in europe. but that's an understatement, isn't it? >> yeah, that was one thing that he made perfect

. -- like msi tesco.e expecting a lower open. china and lack of stimulus is one thing. mr. druggie speaks in brussels. everyone is talking about qe possibly. speaks inghi brussels. >> you have in looking at the commodities market. that is where chinese numbers have hit hard. we are going to dig into this concern over whether we will be getting more stimulus. we will be getting it from china. the finance minister is saying we don't really need it. the finance minister saying yes, the chinese company does face pressure, but we are not going to change policy in the major way. i know you know it may seo. he is from the italian central bank. we are seeing stocks take risk appetite is just waning as we feel there is a little cooling down in stimulus. ftse up by 6/10 of a percent. france's trading lower. italy is really feeling the pain. it was really the commodities market but felt the heat of those statements coming from the g-20, where we saw finance bankerss and central gather in australia. we are seeing oil

tesco's uk grocery market share is 28.8%. tesco sales down 4.5% in the 12 weeks to september 4th.that is according to the world panel. now, this is, of course, ahead of the accounting scandal that has erupted at tesco over the weekend. and we're seeing this squeeze in the middle for those super markets which are positioned in the middle. they're driving market share at the expense of the incumbent, asset sales of 0.8%. sainsbury down 1.8%. morrison is down 1.3 the%. and the overall grocery market growth slowing to a new record low of 0.3%, the lowest level since when the market data was first compelled in 1993 as price innation falls to zero. that makes it even more difficult for the tescos and the sainsburys to deal with the competition from the low-cost companies. >>> still to come on the show, if you think most people agree it's key for corporates to pay their fair share of tax, you would be wrong. in china, only 55% think it's a big deal and in russia it's even lower. your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchr

>> 170. >> james benton will be back when tesco -- james benton will be back when tesco gets down to70. >> i don't think they will have time to do anything other than put together a quick statement to say he is working on it. i think we'll have to wait until next april, at which time i think you will kitchen sink it. >> james bevan says there will be no kitchen sink. as we head to the break, a quick check on european equities. we opened flat. right now, the ftse 100 barely flat. talk aboutce we will airlines, air france, the transportation minister says air isnce's low-cost carrier grounded for good, but airline says they are not so sure. details next. ♪ >> welcome back to "on the move ." move thisnies on the morning, shares of citizens financial begin trading in the u.s. after pricing below the market range. the rbs subsidiary priced at $21 50 cents per share. the range on offer was $23 to $25. fined $77as been million by u.s. and u.k. regulators. their wealthms management business charge commissions without client approval. paying $62 million to the u.k. after failing to properly p

tesco has been declining for 3-4 years in a row.e on people to bring in money gets out of hand. therelationship between supplier and the retailer has a greystone and a bit of a judgment. it has gotten out of whack, in tesco's case. >> they overstated earnings estimates and you scratch your head. it is the same rationale that was in the first half. it applies to previous years of reporting profits. they say they could go back to other years. it is size and scope. how far back does this go? foreonly came into the in this first half of the year. >> it would have started when tesco's problems started several years ago. it also means that it probably will not be bad in the new year because you have the increase in the amount of rebates. you will not have several million pounds of stimulus. you look at a slight increase of how much they are pushing. off billion pounds wiped might be an overreaction? >> in my view, it is an overreaction. i think it is rightly so. there may have been a few individual transaction -- transgressions. at this s

shares in tesco down 30% this year.apture bank will buy barclays spanish assets for $800 million euros as they look to reduce their banking business. however, barclays will keep the investment banking in business as well as credit operation. and barclays will make thousands of job cuts over the next few years. barclays shares are down 9% over the last three months while the bank is trading 3% to 5% higher over the same period. >>> i just want to mention that we are getting breaking news throughout the war with regards to ilead shares, they are now off quite a bit more after reporting smaller than anticipated year profit. we are just getting comments through that the cfo was saying the bid for t-mobile u.s. would still lead to capital increase of no more than 4.5 times net debt. they are stating that the july offer for t-mobile is still valid. and a capital increase is no more than $2 billion as well if this carries through. we are just hearing that on the wire. >> so this continues. still to come on the show, the pro-de

four tesco executives have been asked to step aside. month after than a a profit warning at the company. there is an accounting investigation. externals are coming in and looking at the statements. there was more his caroline hyde -- here with more is caroline hyde. >> messy, messy, messy. is how muchpounds the first-half profit has been overstated. we understand this overstatement of profit is linked to the income from suppliers. they are going to dig into the business. to be making an independent, comprehensive review. they have lawyers involved. they are delaying the statement to the first-half to october the 23rd. understand that four executives have been asked to step aside. ago, he who left months has not been seen for several weeks within the office. they are now thinking whether they transition to a new cfo that much faster. will we see the cfo starting before december? this is going to be a really tumultuous time. there is some upside to this. the downside to the new management team is that this is not a great way to start. the

>> tesco home bowls. the managing director -- tesco tumbles. -- the managing director talks about inaccuracies. siemens. labour gets to work. opposition leaders are set. stick around for the election of agenda. we will be live with the shadow business secretary. good morning. welcome. you are watching "the pulse." i am guy johnson. the big story of of the morning is tesco shares down. down hard. more bad news for britain's biggest. accounting investigation overstating its profits by a quarter of a billion pounds. here with the details. caroline hyde. they are saying that first of all, they have overstated to a tune of a quarter of a billion pounds. the reasons are they have accounted for some money too early and some too late. it is delaying when they will come out with their first half numbers. involved inting terms of digging through and doing an independent investigation. what is unraveling through the investigation, uncertain executives to set aside. most noticeably.uk h -- most notably is the u.k. he

the world's second biggest supermarket group, but there's this shock revelation that tesco had overstated its profit forecast by more than 250 million pounds, about $400 million. and its shares have plunged around 10%. >>> hello. it is midday here in london. the authorities are struggling to cope with another huge influx of refugees, have begun to close the country's borders against syrian kurds fleeing the murderous advance of islamic state. in the last two days, more than 130,000 syrian kurds have crossed the border into turkey, on top of the million-plus syrian refugees already there. most of the recent influx have come from the predominantly kurdish town of kobane. but turkish security forces are also clashing with kurds who are trying to get into syria from turkey to fight islamic state. all of this threatening a fragile peace with the kurdish leadership after decades of conflict over autonomy in turkey. >> reporter: they're desperate to escape syria. tens of thousands of kurds driven from their homes by i.s. militants. they come with stories of terrible atrocities, of stonings and b

there yesterday as well. >> at what point does tesco become a buy?billion of its market value. do -- declining andock the market share, has stopped being eaten into. yesterday, they came out with figures for the supermarkets. it is not just tesco. others are looking weaker than expected. a slowing showing pace of decline. they have been vocal in their price slashing. trying hard to attract customers in by reducing prices. tesco has a number of problem spirit we could talk for a long time about them. if you want to look at getting into tesco, you don't want to start catching a falling knife. -- the price about that the business achieved, not quite as much as some people expected. what does this mean for them? wanted a substantially larger chunk of financials. we know they're not getting as much as they had hoped. priced at the lower range, below the lower range. investors were sort of, probably a little bit -- they had just through the alibaba ipo. ent, when you compare it to your peers, it is not an attractive valuation. rbs will be a little disappoi

tummy more about tesco. do you see around them? we are at 194. as onenot been as low since 1997. 160 >> a lot of the short-sellers level.neing the 160 that is where we are seeing the targets come in. they are shorting a stock. i expect a long -- a few longer-term positional b uyers come in. we have seen brandon names lose a lot of percentage of their offering. buying, sitting and waiting. there is so much uncertainty. you don't know how it will play out. we are seeing a lot of short interest. >> tell me about the data. we have durable goods. very volatile. we are expect in a drop their. -- there. full toll even for what is a volatile indicator. even for what is a volatile indicator. >> the market is focused around 18%. the only macro indicator out there that could potentially move the market and a dollar. -- and the dollar. is a bit thin on the ground. a flat open. the afternoon is potentially where we could see some action. >> josh, thank you very much. the chief market strategist at city index. on -- they

one company that has had its best data in a particularly rough week is tesco.res the lowest in a decade on the information that first half forecasts were down. has suspended executives and rushed in a replacement cfo. we have now learned that the previous cfo had pretty much no oversight on the period in question. he had no say over the past six months on the job. now standard & poor's may cut the credit rating to junk. cfo alan lewis and new have a monumental task ahead of them when it comes to restoring tesco. if you want the number, the stock over the last five days is down 16.5%. 3 billion pounds wiped off the value of that company in five trading days. tough day for tesco. air france have offered to back down on the expansion of the low-cost unit. curry lundgren joins us now for the latest. what are the developments. the bottom line, they get what they want? >> the board came out with a statement backing the ceo of air france. the board is saying the pilots needs to get back to work and understand that expanding the discount unit had to happen under terms

tesco, -4.5%. internal financial problems, the new guys at tesco have got to think about how you will reposition the company. in a word, it is a mess. >> it is. looking at the short interest and tesco. it jumped at the beginning of september and is beginning to roll off. maybe that is the lead indicator as to what happens next with the share price. jonathan ferro joining us on the market action from this morning. 25 minutes to go until "surveillance." tom keene at the helm. syria is front and center. presidentth the traveling to new york city. he'll be here for a good number of days with the first lady. attending the u.n. and then the clinton global initiative summit. he will have a conversation with president clinton. we will focus on syria. david gordon from eurasia group. a conversation with ian bremmer in our next hour. this on syria and the combined allied action. one of youro, frequent guests in london. we talk about the disinflation. some would say the chronic recession. us on china asn well

the move comes, tesco has pushed its stock.c schmitz has been speaking to bloomberg and her's to europe to promote talent and innovation. >> europe has to choose innovation. and right now, the model of europe and their tough session -- situation, the only way for europe is to brace innovation. and by that, they're going to flexible laborre markets, create local companies. there is plenty of talent. the model has to shift. >> the u.s. and arab warplanes struck oil fighters controlled by the islamic state, hitting 12 facilities used to the groups oil smuggling operations which has up to from the militants, according to some estimates they met -- been raising more than two main dollars from oil sales a day in iraq and syria. to the markets. >> i will bring a little bit of it appetizer. dax up. down a littlee bit. here's the main course. drops a little bit. the reaction in the euro over the last three months has been absolutely stunning. look at it over the last 6. draghi has done his bit at the ecb, but i think you cannot mask wha

but tesco -- this is some bad news for tesco. shares plunged 10% today after the world's second biggest retailer said it had overstated its forecast profit by about $400 million. the group said it announced its eternal inquiry and suspended four senior executives. pilots strike at air france. that's going to enter its second week on monday. the fate of air france is at stake, and pilots are protesting over the firm's plan to develop its budge etc. carrier where pilots are paid less. >>> this week, we're going to be focusing on another aspect of how climate change affects our lives. in world business report, we're going to kick off a series of a report on how farmers in india use the latest technology to overcome challenges. massive challenge. the asia development bank warned that the impact of altered weather patterns could cause huge damage to the indian economy. wiping off the equivalent of about 9% of gdp by next century. let's have a quick look at the markets. tesco really has a serious -- in fact, 10% fall. down 52 points, t

four executives at tesco have been suspended. the current auditor declined to comment. accounting firm has been called in for a comprehensive review as well as freshfield which is an exturnal legal adviser. this warning comes as another setback the struggling retailer is dealing with slowing growth, disappointing earnings, price cuts and not to mention rising competition from discount retailers. it also comes three weeks after david lewis came in as the new chief executive. lewis said it was too early to make a call on whether the accounting issue involves fraud. the accounting company delayed results to october 23 when we could get more details around this overstatement. so we haven't seen the end of the story just yet. back to you. >> thank you very much. another side of retail, of course, the black market. on the economy the black marketing of iphones going on sale in china. this video just came in from our chinese bureau. those are iphones in china. the product isn't up for sale there. the black market is hopping. reports say they are going for double what the phone

tesco falling again. dropped the chief finance officer faster than expected. the ceo came on a month early. to they are bringing the cfo try to get a grip on the crisis meeting into tesco. shire off by more than five and a half percent. i am sure you will be talking about these inversion deals quite a lot. u.s. companies making the most of the tax. what will happen to the deal? merrill lynch will still go for worry they won't eat up shire. to clamp down on those deals. have a lower open. just getting some news that israel has sought down as. warplane near the border. geopolitics a big theme. markets open lower. israel shoots down us. warplane near the border. let me bring you french pmi. french given them french taketh away. it comes in at 48 .8. the bar was low at 47 expected. here is the miss. markets come in at 49.4. they miss on the composition as well. a little more perspective on today's trading with the head of european equities. he oversees $28 billion in assets. welcome to the show. a busy start to the trading day. got much detail, but geopolitics ove

morrison this morning, tesco. they are going to leave it to the scots.will do business whatever happens. investorget the perspective on the scottish today. in edinburgh, the managing director of svs thanks for joining us. a month ago, hardly anybody in this rk really paid attention to this event. has something changed in the last month or did everybody outside scotland not appreciate how close this would be. since we had the last debate i think it would change the use and some of the undecideds perhaps started to commit area there has been some underlying change. there has been a wide degree of error. >> westminster and threadneedle street digging their heels in. sterling a big no-no for an independent scotland. i think there are concerns about currency. it remains to be seen in the event of a yes vote just exactly what arrangements the bank of england has in mind. in thosean interest circumstances in trying to preserve as much of the structure that we have in the u.k. on a federal basis. an attemptre will be to maintain the institutions that the u.k. ha

tesco is a specific situation. you have to be careful.fer more from the situation you have systemic. it is true when things become more difficult like tesco was seeing revenues going down, it is more difficult to hide the problems. >> we have more on the surge of capital. here is a look at two stocks on the move. and off for -- belfour. profits short at the outlook. .e will bring you more stay with us, and we are back in two. ♪ >> welcome back. 1.6 billionised dollars in the biggest public offering for dubai in years. the individual part of the sale was more than 20 times oversubscribed. dubai has seen a retail boom surged by an increase in tourist arrivals. balfour are taking a battering. the company sees a further shortfall in the construction unit. he willrshall says resign. ubs sales are slightly higher after they announced profits already exceeded expectations. beat the 748 million. ubs made the announcement as part of an offer for investors to exchange their shares for ubs group, which created some demands for separate legal entitie

tesco not to which i'm bored. well yes it was a. real we will suppose a whole new deal was a deal in the folder. but then most of it was shot. and killed to me and he didn't be able. but you know known. in town it's kind. of that. does exist. anymore. he wants and that. would you sleep through it was a way to get on up to someone's post you could see. crosstalk rules in effect that means you can jump in anytime you want. on marriage in the financial world. has to go it's not stop exit only takes no demand for credit not going to get any benefit in life there are and there are but. laugh and play and as you saw after world war i won a bunch of european countries just jump in the middle east the dalai and all over the map and say all these are the new countries we don't care about this recalls or well last august twenty fourth and you end up with islamic state or isis. the media leave us so we leave that maybe. i will see bush and suit your. play your party there's a bill. for shoes that no one is asking with the guests that you deser

tesco not to which i'm bored. well as a. local school board and you do a deal in this poll it will be more but almost for. me if you don't be able to move on. but you know. in towns. and then. using some. new more. you will and that it's good to move with the money would you sleep through it as a way to get on up into some space to do. so. when we come to talk about the addiction to cigarettes where you understand quite clearly that there is either smoking or not smoking we believe completely it upstream that's all i can quite understand why we don't have the same belief for drugs or alcohol to me the only way to productively dependency is to give up trucks altogether. this led to this it was terrible to say the i'm very hard to make honorable i'm against a long career a plug that never had sex with the perfect hair plugs let's a complement. the i'm flummoxed slips a bit. of a. my marinates join me on in-depth impartial and financial reporting commentary can from news and much much. only on the bus and. told her my language

-- i like that tesco knows what i am buying. >> we had some numbers coming from kingfisher.to be speaking to the boss of that business. we should speak about the secession at the company. veronique already works at the business. that is interesting and the numbers coming from the company this morning. french media company vivendi is said to be considering a stake .n the set we are joined for more from man u -- men well. what is this news mean to us? is trying to build an empire around the pay-tv business. a country in which he owns a big stake. he is the second largest shareholder. sold the business gdp to telefonica. he will exercise each option. nutshell, vivendi has become a vision in italy. >> he has been away for 10 years. why come back after a decade? >> that is a good question. vivendi has been shutting assets. it didn't make a lot of sense. they are trying to streamline the business and build it around pay-tv. italy has good assets. the pay-tv unit is a good chance for borrowing in the country. >> why the focus on italy? and howok at where people spend, italy does no

tesco used to be one of the companies when i was growing up. look at it now.he other big news, and this is for everybody out of china, is this concern that we have about slowing and specifically at the g-20 in australia over the weekend, the chinese finance minister basically poured cold water on the idea they might further stimulate the chinese economy with extra measures. prices have slipped below $80 a ton for the first time in five years and see the effect that's having on the mining stocks listed in london. if you're traveling through europe i'm afraid the air france strike continues, despite an offer from management to delay the introduction of the low-cost operation. the pilots have refused and they remain on strike. there's big disruptions. be careful. and if that wasn't enough, what a stunningly depressing performance from the ecb's mario draghi in brussels before members of parliament suggesting the eurozone recovery is losing momentum and risks to the economy remain to the downside. he's still got things to come through like cheap cash for the banks

me, whoe lady said to has a harder job, john chan or the man at the top of tesco.gained over 7% after raising $3 billion in its ipo. ruth, what does the ipo mean for rbs right now? we see a little bit of a top -- pop. notee interesting thing to is a price it below the market range. they came in at 21.5. we spoke to him yesterday and he said the one place they have not enabled to work is on financial performance. said we will not buy it at 23 and we will come in lower. now that the stock has started to move there has been demand. own 75% of the company and they can get a year's extension, so they still have a bit of time to get through the assets. just a note, they're going to realize a loss of about 200 million on this. which will start coming through when they had sold 50% of the stake. >> so it matters to me and you and people watching. $3 billion might have been a little bit of a disappointment, but it is still ok for rbs. good start because they are starting to get rid of their unwanted assets. it is a great start for them. yesterday rbs shares were up as well.

. -- tesco has cut its in the dense. you're seeing a lot of new companies like alibaba, facebook , and those companies are growing top line in this new environment. >> thank you very much. andy brough joining us. to break, let's look at the shares of sap. more on that story when we come back. ♪ >> welcome back to "on the move ." trade for the first time on the new york stock exchange today. the company shoulders shares at $68 apiece giving and evaluation of more than 107 billion dollars. they could break that ip a record if additional shares are sold to underwriters. the software giant's founder is stepping down as ceo and will be replaced by the copresident. and sap is buying concur athnologies in a deal valued $4.4 billion. hans nichols has more. why are they buying? >> they want a piece of the cloud. this is a seattle-based company that manages business travel accounts. they want to have a bigger presence in the cloud. 129 per share. premium from when bloomberg initially reported this is likely to happen. they get a p

tesco says a quarter of its profit does not actually exist.kraine tries a cease-fire attack. we will go underground. in sports, the nfl holds a friday night news conference will be forgotten by monday. it is ay

tesco getting crushed. gain inorting a 76% annual profit. time that rises, they are eating away at this one's market share. fx, the kiwi getting crushed. 1.4% against the dollar. the central bank in new zealand have released data about their millionrvention, $521 new zealand dollars. that pushed down the kiwi. the prime minister coming out and saying the goldilocks level for this one is 65 cents, 77 cents now. why does it matter when a politician speaks? usually we do not pay much weight when they speak about the fx market. when that man was the global head of fx, he has more gravi tas. turkeyin greece and higher. in spain, up 5 basis points. referendument november 9. it is not sanctioned by the government. some big things for spanish assets. >> thank you very much indeed. 25 minutes into "surveillance" in new york. what's on the agenda? >> a lot going on. protests in hong kong. i loved jonathan ferro's discussion of the new zealand kiwi. this morning against the australian dollar. we stay in asia and go to hong kong. our correspondents will

troubles for tesco. they are deepening this morning. announced investigation into accounting practices at the world's biggest retailer. here's more with caroline hyde. it seems they have overstated rough it's. -- profits. >> you're right to the tune of .2 5 billion pounds. that is the equivalent of a whole year's profit. they have to understand what has gone on here to get into the detail. so clearlying on this is a serious issue. they have asays serious issue and have to delve into it. it is the third time in two months that investors have to swallow that profit will be lower than expected but uncovering some serious mismatches. what tesco has basically done is bringing forward some money that is coming in and delaying some cost that are going out is a mismatch of money. >> some heads are rolling over this one. executivesright, for to be precise. -- four executives to be precise. the chief executive will have to step aside throughout the investigation. we will have to see new people coming on board. total, fourd in executives have been

tesco the caller raises an excellent point. countries like saudi arabia clearly saudi arabia clearly does it share our values. there is his extremist islam that runs rampant in saudi arabia. their views on the role of women are certainly anathema to most of what we as americans believe is a very complicated situation. we saw in the air of spring there was a suffered in many countries is sort of rise up and try and bring similar form of democratic governance and i think were largely supportive of that. we started with him and president mubarak of egypt after it became clear he was going to fall and hoping for a more progressive government in setting egypt we got the islamic motherhood who are one of the soul office groups that the caller mentioned. so some transformation in that part of the world i'm certainly all for it. if the question of how you do that and away most of of these countries, these may arab uprisings haven't been all that successful in bringing more to these regions.ive government >> host: underline for dependen

company that has presence in the u.s., tesco. almost 2% and down one third this year.ench time will they be ? they brought him in a month ahead of schedule might perhaps reflect the desperation they have. market share is being eaten away and not just [indiscernible] they are seeing their profit margins being eaten away. need to a feeling they knit this in the bud. noting that worth as the parent company said, a movement to the fresh and easy template. refocusing on the u.k. market, the prophet market is where most profits have derived from. we will wait to see if other assets are for sale. -- has had a look. it is a bit of a mixed bag. some of it has been mainly cost without the benefit. >> has the u.k. economy finally hit a roadblock after the manufactured pmi data? trade partner is the eurozone. and ground down 50 points manufacturing pmi was disappointing. >> the numbers were lackluster. been higheres had than expected. it is a question of whether they reorganized, reshuffled their wares at this point. it will interesting -- be interesting to see how this pans out.

if scotland votes yes, rbs, lloyd's, tsb, tesco, and clydesdale say they plan to move their legal homesouth of the border into england. and the banks aren't the only ones. the life assurance giant standard life has said that if scotland votes for independence, they're planning new registered companies in england, into which they would transfer parts of their business if they needed to do so. most of these companies already have offices in london, so it wouldn't be difficult to do and they've all rushed to reassure their staff in scotland that jobs aren't at risk. so would it really matter or is it just a case of moving the brass plaques? the two sides of the referendum campaign don't agree. >> i thinklem relies entirely, they have been caught red handed with a campaign of scare mongering. >> it's not about brass plates, it's about bras ts tax. it will cost us funds. >> reporter: all of this uncertainty centers on the question of what currency they would be using. the scottish government think it could be easily resolved with a currency union, but westminster has ruled that out and many

it is tesco. chief executive because, among other things, the emergence of those discounters. but you have to say, like-for-like sales haven't burdened -- >> they were very late to the online party. i was checking the tv stations yesterday afternoon. .ou see this huge ad company they are undercutting everybody else online. >> they say we are now expecting 60 to 70 stores this year, which is lower than the guidance. follow us on twitter, take part on in the online conversation. >> do your people say nice things to you? >> do talk to us. tell us what you think. that is where you can find us. plans,is financial richards group. stay with us on countdown. >> welcome back to "countdown." with just a week to go until the the bank said it will not be the lender of last resort. would only england have a short-term role in independent scotland. has a bank of england greater responsibility for financial stability. we are not solely responsible, but we have a range of responsibilities such as lender of last r

and in counting investigation is underway at tesco. it has asked its u.k.o step aside for the time being. first half profit guidance was overstated. shares of the lowest in more than a decade. merck is expanding. the german drug maker has agreed to buy sigma-aldridge. will pay $17 billion. coming up in the next hour on bloomberg surveillance, we are going to be joined by the two men behind the deal. that is going to be coming up in the next hour. a $17 billion deal. >> very timely. let's go to our single best chart. it is all about uncertainty. we hear about it so often. down, twoak it professors at brigham young university say there are two types of uncertainty. demand uncertainty and the other one is technological uncertainty. they plotted out where different industries fit in this world of uncertainty. technologytracks uncertainty. the y axis tracks demand uncertainty. metals, utilities. low uncertainty overall because demand does not fluctuate wildly over the short term and the technology you are using is basically what it has been used in the past. the

you have been at tesco and walmart.llenges of doing business as a retailer in europe, is in the economy that worries you the most, getting online? >> the most important thing is to satisfy your customers. yourstand the direction customers are going. that is how you win, by satisfying your customers. we recognize customers want to order more online. you make it easier for customers to order pizza, the more pizza they will order. the other benefit of online as it makes it easy for our colleagues working in stores because instead of having to take information from the phone, they go straight to the make line. it is much more efficient and more accurate. downne is taking something on the phone, there's always the danger that the p will be -- will the customer wants it. it is winning in terms of customer preference. the great news is our online customers spend more money than the people who call us. it is a win in every direction. >> where do you see it going next year? grown so rapidly. we are focused on the inputs of how w

what a week for tesco. internal problems on the financial side of things.y down by over 16%. over 3 billion pounds sliced off the market cap. french unions on strike. that company taking a beating. dollar yen tells the story to the eurozone. through 109. inflation data overnight shows inflation that -- inflation at 3.1%. tax you strip out the sales , there is inflation of 1.1 percent. you can weaken your currency. price. have sales tax that does not mean you have an economic recovery. >> a little bit of pop in european expertise. we are looking forward to what happened stateside. tom keene is over in new york with a preview. what is on the agenda? >> i was crying over derek jeter. he played his last game last night and it was stunning. we will discuss his final game with the new york yankees. we will do that this morning. before that, very serious conversation. in london, parliament in an emergency session. we will cover that. the nation'ss on foreign policy. really looking forward to speaking about a new world order. we will talk to william: about wall str

a lot of talk about the state of tesco. could they be a buyout target? >> there are rumors.n sachs, it has had a big effect. they have done the same thing. >> why is he doing those? >> i honestly don't know. i think it is a certain -- maybe i will take a punt and hedges well. at the time, brokers, three of them are buy, most of them are hold, but are still sells. the takeover scenario and the rumor that morrison could take over, they are down 30% year to date as well. not exactly the cash flow to get involved. i think any sort of catching a falling knife has to be watched out for. >> a number of analysts, a couple of them have said i don't like these things, but i might sit on the fence because there are so many unknowns. the increasing realization everybody is getting the finance chief has not been present at the company. >> since april, yeah. >> a staggering revelation. it's talk about bae. petro poroshenko in the ukraine suggesting we may be through the worst of the violence, but tension in the middle east could play into the strength? >> certainly. the decision about joi

yesterday, tesco suspended watch her executives after discovering a profit estimates were overstatedn $400 million. theirance pilots say strikes were not and any time soon. they rejected a proposal from management to developing a low-cost european strategy until the end of this year. the strike has grounded thousands of passengers and wiped out millions of dollars in revenue. that is today's company news. arab ally attacks syria. the islamic state, this of course grows across much of eastern and north-central syria on the turkish border. with us willem marx of bloomberg news. indira lakshmanan. >> i have heard from sources that the president is possibly going to address the nation from the white house before he even travels to new york. the white house has not come from that, but we do believe that some sort of statement will come out explaining what they are doing, and this is something that willem and i were discussing before. in the course of the attacks against isis in syria, very interestingly the united states has also done a number of attacks against a group that we basically

tesco says a quarter of its profit does not actually exist.e tries a cease-fire attack. we will go underground. in sports, the nfl holds a friday night news conference

price cuts that we're talking about are hurting the whole sector and you know what's happening with tesco, they've had to parachute their new chief executive. very quickly, it looks bleak, even in waitros, which has been one of these success stories, you saw a decline. they pointed to the fact that they've been investing in new store openings as a reason for this decline in profit. overall, john lewis does well. but it doesn't look rosy for the whole sectors. >> the only thing we heard was the market shares are growth, the quality of the product, i think, is better and -- >> and the fact that those discounters, the chief end of the market are doing well, is that a bad sign for you in general? >> the possible income is not going up. there's no way inflation -- >> all in all, the only thing you can do as a retailer is trying to squeeze. you talk spain. but the market is not, as well. >>> still to come on the show, time to talk apple again. will the watch be a real game changer? plus, how are retailers getting ready to roll out the iphone 6? we'll discuss after the break here on "worldwide e

the biggest loser seems to be retailer tesco to announce it overstated profits by over $400 million.>> the g20 finance ministers are wrapping up meetings in australia saying they are close to adding an extra $2 trillion to the economy, but the group is warning that europe's slowdown remains a major stumbling block. and it is playing out if we take at what is happening with the u.s. equity futures. right now the dow futures are down by 28 points below fair value. the s&p futures are up by 7 points. although, andrew, this is an improvement from earlier this morning. >> yes, it is. thank you for that. as joe was telling us, it is a merger monday. it's already shaping up to be a busy monday for deals. just crossing the tape this morning, germany's merck buying sigma-aldrich. that company is valued at $17 billion. that's a huge deal. we have both executives from both companies to join us first right here on cnbc and we'll have that interview at 6:40 a.m. eastern time. >>> also, it is official, siemens is buying u.s. oil field maker dresser-rand with shares up 30% over the last three month

tesco coat the case of kyl bell versus royal dutch shell was a case where plaintiffs related and 96 who was murdered by the nigerian military and basically in his memoir he talked about the role of shell and basically keeping up, propping up the same military government ruling out nigeria that exists today, that basically strengthens a vocal of iran. this is something talked about in his new memoir. he passed last year called there was a country. i was wondering if dr. berry had an opinion about how the obama administration cited the show completely to totally dismiss the case said the plaintiffs in nigeria who were fighting for right to prevent shell from exploiting oil as they've been doing for decades since the 60s in nigeria. >> guest: i had forgotten what his first question was. >> host: is about executive power, and use of executive power. >> guest: that means is that you want first and then i go back to that one. what i know about the situation in nigeria, if only some of the degradation that has taken place there. i am not sure what obama did or what position he took on the case