that is why tesco got caught.ut your margins and understanding where your business model is going. what we have done, we have looked at the winners. we have analyzed the apple, amazon, facebook brigade. if you look at them, uber, the next generation of digital disruptors, this gives you an indication of how the rest of the world is going to look. they are going to look like what apple did to music. there is a multi-stakeholder right there. if you are paying attention, there are a lot of indications of what business models are going to look like. is it oil and gas, is it luxury, is it whatever? people are trying to figure it out. i think it is pretty clear. five years ago, we could wonder what was going on, the ipad, the iphone was out there. now it is clear what is happening to business models. >> thank you. julie buyer -- julie meyer from ariadne capital. ♪ >> it is the day of reckoning. the fx fines are out. five institutions have received their headlines. , three quarters of a billion swiss francs from finma, t

something we don't see from the big retailers like tesco.e to focus on narrower ranges of quality in much more simple pricing and promotions. tesco, promotional investment from supplies can be a grubby alley. andink simplicity, focus making it easier, not necessarily cheaper. >> we can talk about the balance sheets of tesco and what needs to be done. i want to talk about product offering. ewis came out with the fact they increased their product offering by a huge percentage over the last couple of years. has sainsbury's been equally ignorant over there product offerings? >> if you are listed retailer who was reliant on money from supplies, that can drive wrong behavior in what you do in stores. if you are bringing in new products, it is up by 30% over recent years, that is not driving behavior which is designed to make life better for the shopper. it is driving behavior that is intended to make life go towards the bottom line. we will see return to shopper century city -- shopper -centricity. store formats. the shoppers are in charge for mos

tesco, sainsbury's along with morrison's.only of the four players that has managed to increase market share. like for like sales were falling. he talks about his five pound voucher as panic tactics being played. he says this is a shock wave that has gone to the industry. they are trying to say, we saw this coming. we saw this whole shift in the market two years ago. that is why they said, we are putting a billion pounds into reducing prices. >> and everyone started to copy them. >> sainsbury's yesterday said they are going to put in 100 50 million pounds. a drop in the ocean is what people called it. is companies really worrying about the future of this industry. i asked, will there still be four big players in 5, 10 years time? they said, probably not. the companies i grew up with aren't there anymore. if you have got trust, consistency, he is talking about tesco. >> you talk about this negativity around u.k. supermarkets. something notfind negative about them. where do we see the growth for asda? >> it is about innovation.

in london we have had a number of police and tesco's and asked s, which opened at midnight. cheap television and hopefully by some ham while you are at it. in manchester they have had seven stores having to call police out at the moment. clearly we have imported the chaos that goes on in america as well as the deals. livetime last year i was in london, and there was quite a bit of tugging, pushing, pulling , grabbing. there were cheerleaders. all of the shop assistants were in fancy dress. as they went front and center, adopting the walmart spirit, they put it on the map last year, now 50% of stores are copying. john lewis did it last year. we have online retailers, 20% off everything for cyber we can. harvey nichols has got money off today. lurere going to try to people in with the idea of a deal early on. what is interesting is germany is adopting this. >> that was an agreement -- an ingredient last year. >> i think so. claimed to bring it over, but suddenly it has gone viral. we have the electronics store in germany. a have black week. in france you have the supermarket c

a loafer tesco shares.e up 12%. 2.6% today.ve the outperformed, the new rating from stanford bernstein for tesco versus the previous rating of 4. the target is a wait for it -- two .35 pounds. up 2.5%. mark barton, thank you very much. headlines.e the top more than 2 million voters cast votes in independent ballot ruled illegal by the court of spain. the prime minister's office said the results are not a valid because it lacks the proper checks and balances. china has secured a fifth of the natural gas it will need by the end of the decade from russia full of after the two nations struck a major deal adding to the $400 billion agreement made earlier this year. russian turn to china to die first fight is markets as western sanctions way on the russian economy. ukraine's that russian is sending weapons and supplies to rebels in the east of the company. heavy shelling destroyed buildings in the pro-russian stronghold of donetsk. they killed as many as 230 and surgeons in a battle for the airport. battle forts

. >> what did tesco get wrong? versus the excitement here? >> tesco is basic foods.acy's is for luxury goods. that is one big difference. what tesco's strategy in the western out to be was whole foods, and whole foods has that sorted. insight.s an important me, too doesn't work. >> it has to be differentiated from the market. >> how come we don't have a harrods in new york? >> we have so many department stores here. we are getting the nordstrom and human marcus and hudson yards downtown. >> do they make money on watches? watches inreally six the paper. >> they're making a huge amount of money because of the gross margins on watches are off the charts. >> i think you just told me i got taken. >> we all did. >> mortimer singer and jim mccaughan. coming up, and investment opportunities in mexico next on "bloomberg surveillance." ♪ >> good morning, "bloomberg surveillance." negative eight, nine negative seven, dow futures at -53. yields coming a little bit over the last hour. we need to get to a morning must-read. >> my morning must-read is on yesterday's fed minutes, wh

now retailers like tesco, john lewis, boots all have black friday deals. one of the big uk retailers pushing it out is asda, it's owned by wal-mart and trying to offer huge discounts. last year, asda ran short of big screen tvs. now they're relying on the parent company to fill the shelves as opposed to local suppliers, to sell a lot more 40-inch l.e.d.s for around $200. >> all the tvs that we are selling in black friday are being sourced from relationships that we've got with wal-mart, or directly from wal-mart factories. today we'll sell well over 20,000 televisions in black friday today. >> reporter: police in manchester, england, say there were several arrests overnight after being called to seven tesco stores. the chief of police there slammed the store for not having enough security. in london, police were called to three more stores. this trend now flies in the face of the time-honored british tradition of the january sales. >> we need to ensure that we can save the money before christmas rather than discounting them after christmas when people have

now tesco, john lewis, boots, all have black friday deals.g uk retailers pushing it this friday is asda. it's owned by walmart. and using its walmart connections to try to offer huge discounts. last year, asda ran short of big screen tvs. now they're relying on the parent company to fill the shelves as opposed to local suppliers. to sell a lot more 40-inch l.e.d.s for around $200. >> all the tvs that we are selling in black friday have been sourced from either relationships that we've got with walmart and the brand its supplies or directly from walmart factories. today we'll sell well over 20,000 tvs. >> police in england said there were several arrests after being called to the tesco stores. the chief of police slammed the stores for not having enough security. in london, police were called to three more stores. this trend now flies in the face of the time-honored british tradition of the january sales. >> we need to ensure that we can save them money before christmas rather than discounting them after christmas when people have already spen

in the u k, there is a argo, tesco, curry's electronic store. it is expected to be the biggest day ever for online shopping in britain. recesses britons will spend $9.5 every second. in canada last year, there were tens of thousands of canadian shoppers flocking to the u.s. but canadians will have their own black friday event now. 60% of the population will be buying purchases on black friday from local canadian retailers. >> and there is cyber monday which is the monday after thanksgiving. brussels is is expected to issue a final warning to france and italy about their budget next year. >> france has forecast sluggish growth. and brussels has said it is not doing enough to cut deficits and make the country more competitive. earlier today, the economy ministry at her said france will perform but added that the government is paying for the mistakes of previous administrations. it has struck the right ounce between a serious budget and growth. the eu cannot to dictate the confidence for the time being france and italy are expected to avoid being f

food was up 1%, unlike the likes of tesco and sainsbury, they've done very well.o it's not been a great set of results, but it's been a better set of results than expected. and that's what is delivering the relief in the market. remember m&s had a big position from lone star, the american hedge fund who took a 1.6% bet against the company. i think there's a bit of relief in the air. >> and as you said, they beat on food retail. the low end is doing quite well. is that part of the reason why tesco has been struggling, because they don't occupy any clear brand in the uk? >> well, lisp, retail in the uk has diversified and polarized to their value level at one side and the luxury level on the other. so the likes of m&s have done very well while the german discounters have done very well, as well. as consumers, stop shopping in just one place every week. but rather goes through to one super store from one product, another shop for another more expensive item and mix up their weekly shop like that and people that occupy the middle ground, they are that middle grouped.

. >> tesco. >> buffett bombs. >> coca-cola. this is a name i love and a name that falls under classic buffett theory, which is i a company, something that's deep value. i think the expectations are very low. warren is ready to say this is a stock that has certainly been beaten up wrongly even though the growth we all know is not in line with a monster. >> who wans to trade ibm? >> ibm. this thing's trading at levels we saw in 2011 on the down side. we questioned the oracle of omaha when he bought the stock saying ibm doesn't have the vision they used to have, they don't have the clarity. so what used to be a reasonable multiple for them doesn't make sense now. now the stock's trading at 162. feels like it has nor room to the down side although it's probably getting interesting for some people. >> he's not in ibm for the vision that they have. he's in it because they're buying back all their stock. that's all he cares about. he's even said that, that he's really happy when it drops like this because they can buy back more stock.

goldman sachs are cutting their price target for tesco to 155 pence. tesco is lower.theme driving is japaneses lower gdp. the third largest economy in the world -- in recession. some question marks. not enough hike, qe to stimulate the economy. a question mark for the .urozone, slipping to 1.2491 board members at the ecb questioning the policies of the bank of japan and whether qe has worked. theoretically, the ecb could buy sovereign bonds. he really did say that. you're a dollar at session lows. 1.5627., you do not trade the pound. let's say you have savings -- cover your ears. hsbc pushing back there call for the first hike from the bank of england to the first quarter of 20 16. 12 months later than forecast. barclays pushing their called back to q3 from q1 next year / . pushing back the forecast for the first hike of the bank of england. thank you so much. the awaited hong kong-shanghai exchange opens for business. one of the boldest moves by chinese government to liberalize capital markets. >> china is opening its doors to the outside world. the shanghai-hong kon

in tesco's people being surrounded by police because of the scuffles going on across the country. interesting it is the day the u.k. consumer confidence actually fails to improve, missing analyst estimates, worried about the economy. we see the ftse 100 off by a quarter of a percent. france also trading lower. we are going to wait for the dax to ramp-up in terms of equity trading. we're going to focus more on brent. let's focus on commodities more than equities. this is where big moves are going to be coming. crude oil is down by 9/10 of a percent. we are at $71.96. yesterday it fell by more than 6%. why? opec's decision to keep prices steady. they are not going to be reacting to the downward spiral in prices, losing more than a quarter of oil's value. could this make some shale projects in the united states lose money? overall, we are seeing big moves in oil. also, keep your eye on the currencies this morning. the euro is off. this is about the hope for more stimulus. will we see it? we had german inflation really showing the problem mario draghi is facing. the german inflation r

price point, the main grosses will not do that, people really get away with being a lot cheaper, as tescoveryone else who look at their supplies say we need to sell it for that as well. thehe other story and markets today staying with retail on the high-end is mulder's so they have a parade of directors and this is a company that has been struggling, how quickly can the director turnaround the company. i think it will always take some time and as i understand it is not actually starting until july of next year and judging the usual seasonality and getting into the history of the brand, i be sometime 2016 before we see any new collections from him. you so much, charles allen from bloomberg intelligence, the euro net indices are not calculating this morning and the company says technical issues are responsible for the problem. from btxe joins me capital, what does this mean for volumes? this is a bad day because volumes are already low because of thanksgiving. >> that is probably the only silver lining on this cloud for euro that that it will be -- euronext, a quiet day. happen in theill in

it was started here by the likes of apple and amazon, now retailers like tesco, john lewis, hoots, alle black friday deals and online, it's not just amazon. etailer shop direct is bracing for a 50% jump in sales on friday and says it's invested more than $1.5 million to upgrade its computer systems just to handle this friday. one of the big uk retailers pushing out this friday is asda owned by walmart and using its walmart connections to try to offer huge discounts. last year, asda ran short of big screen tvs and now relying on the parent company to fill the shelves as opposed to local suppliers to sell a lot more 40 inch l.e.d.s for around $200. >> all of the tvs selling black friday have been sourced from relationships we've got with walmart and the branded suppliers or directly from walmart factories. today we'lle is well over 20,000 televisions in black friday today. >> reporter: this trend flies in the face of the time-honored british tradition of the january sales. >> we need to ensure that we can save them money before christmas rather than discounting them after christmas when

reporter pointing out that there is a huge what happenedeen on the diagram and what happened to the tesco. there is autopsy photograph. that is a real autopsy photograph, as many or all of you know. and then, warren report also -- they reported that based on information and artist drawings, path toted the bullet's as shown int's head frame z-312. you will notice that they did this to show you the path of the bullet. you will notice one huge difference. further down in the diagram but the point is if you shot kennedy had kennedy been shot in the way said they had, entering the bottom of the skull from oswald's position, you could see the bullet would have blown out through his face just as it did in the test skull. in order to avoid that by canting the head downward, they can depict this and report they had the head in the same position. now, we have analysis of bullet evidence. this has long been held -- and a very powerful thing. writing afteroch the assassinations. hochnk critics like paul and bob blakey and other people were absolutely were smitten by the analysis evidence when it was

. >> the british army actually had mini buss to pick them up and take them to the local tescos.hey bought as much booze as they wanted and they came back on base. the day off is friday. so every friday or every thursday night we would call it riot night. when they were drunk, a few guys pinned another soldier down and attempted to rape him. i know that they were arrested. i think they were deported. the victim's cousin was also sent back because he intervened and retaliated -- actually stabbed one of the perpetrators. >> reporter: the british soldiers were concerned that the libyans were allowed to carry out live fire exercises. local officials were worried about their behavior off base. the alleged sexual assaults and rape in cambridge for which five recruits face charges were the final straw. >> i think the ministry of defense have handled the whole thing appallingly. they have lied right from the start. they always knew presumably that they were going to let these trainees out on their own. but we were assured from the beginning that they would be never let out unsupervised.

tesco no, no. a summer job and a lot of people who worked there permanently didn't get to see that. but as i thought about it, but not a would be a tremendous nurse urging. a lot of people thought i would be strange because there had been a black neurosurgeons in the history of the world. to me, i didn't think about it you said this is a by talents are. this is learned in ago. >> host: i hear that basically her surgery to one rotation where people can identify that the surgeons are sometimes the plastic surgeon rotation because you've got to know there is an artistic at the same time. now lamp it in some ways. is there truth about for >> guest: i think there would be as a lot of my career evolved without craniofacial surgery with plastic surgery. >> host: you are not practicing right now. the u.s.a.? >> guest: i miss the way it used to be. >> host: what does that mean? >> guest: there were a lot of things in the process changing. most people when they chose medicine, they chose it because you had t

he talks about the fact that tesco, we are waiting to see what they will deliver.he operating environment to get worse? >> i think so. says there won't be for big players in 5, 10 years time. he thinks some of the players will die over the next five to 10 years. you are not focused on trust and consistency and loyalty -- exactly. overall, he is saying the economy is improving but it is not making shoppers spend. >> caroline, thank you so much. great interview with caroline hyde speaking to the asda ceo exclusively. >> bugatti plans to take on luxury goods. would you have a bugatti handbag? we are going to hear from the boss of this business. he is joining us after the break. ♪ >> welcome back, everyone. you are watching "the pulse." we are on the markets and we are on swiss watch. a taking story. jon ferro, over to you. >> you have to wait for that. i am going to start with the equity markets first. i'm standing on unchanged moves in the dax. the ftse 100 down by 0.2%. let me give you three big headlines. germany avoids recession. the bar is low for france, they di

a bit of a dig at tesco. i think where they had that novel is the prices in the london tube stops. that is where they want you to click and collector goods. they all have these small stores, the convenience, every street corner. never done that and they are predominantly in the north. they talked about two phases of recovery with london racing ahead. >> where they can win in london in cities is picking up your groceries on the way home in the tube. you can swing by and there may not be the whole array of items you would get but if you clicked and collected you could get exactly the product you want. they are trying to be innovative and upgrade their stores, but i think overall this is a man saying i am worried -- i have got a great unknown in terms of the general election, money in the wallets of my customers, but are they coming in and spending? in theas wallowing waters of his competition. the focus hasn't been on asda, has it? >> because of this market share. market share has risen because they have been very focused on price. >> that campaign last year, buying the genes -- the

tesco as an authorized that 10 years in the service industry. clearly, i am not scrubbing friars everyday, for which i think god. but you can take the girl out of the working class, but you can't take the class that is the girl. i will probably stop saying we when i stop feeling as though this is a site i am included in when i have learned the entitlement of the upper classes and that is really what it comes down to is i don't feel any different. it is just that my surroundings are nice outcome which is awesome and lovely. but my fight in the themes i am saying are so broadly shared and i have experience so long that it's hard for me to flip a switch and separated. so what you're talking about i've asked myself a lot is how you will handle those and what will i do. what i find is when i'm so there were some interviews that i can't think of any those things. >> host: i really like that because i was watching an interview you did and it's great that you're talking about people like you. it didn't seem to faze even the interview or at least on your

. >> where do you think he went wrong with tesco? issues people did not know about publicly, but you know, retail has not been his strong suit over time. over the years. retail has always been spotty with him. so, maybe it is just not a great place to be for him. >> and he got caught off guard with what senior managers were doing, so how could you see that? >> absolutely. >> on the other side, he looks like a fortune teller with burlington -- this is the train set that he got at a steel. it, buyingout stole it at a time when people were not thinking the economy was going to retire rush recover anytime soon. recover anytime soon. >> right. >> he also got lucky with the oil shale, they became the largest mover because of geography. >> their travels are over the balkan field. >> right. it in lucky, and he stole hindsight. >> and that means he is generating billions and billions in cash. >> even if he is reinvesting. >> right. $15 million in dividends alone through september 30 of this year. he has now, jeff, a war chest of $60 billion p

wales aside, i could not get over what warren buffett has called tesco a huge mistake. >> he has from in his long-standing career admitted to various investment mistakes and this one being by far his biggest. you are mentioning the railroad scarlet, he got a really big train set when he came to burlington and this train set has done really well. he got it for a steel, this is a guy who knows the value of a dollar. this company has not only benefited from the boone -- from the recovery of united states, but the boom in oil. the fracking and the shale oil boom in the u.s. is benefiting burlington. >> i want to move to something slightly less fun than trains. we will get there, i will drive this through if it kills me. hathaway has been saying for years that you watch hedge funds and capital markets get into insurance risks that are a bad place to be. aig has not had the best lapse in several years with property-casualty insurance. is at a business you recommend? great business if you have the internal strength to analyze your risk and price things properly. you do not just chase every d

while in the last year you've seen hemorrhaging from tesco's market share, you've started to see that really affect sainsbury, as well, and it's hurting now. >> and i want to come back to you now. there's so much data coming out. let's talk more about the inflation data. i suppose when we take a step back, yes, mark conferenceny was dovish last week, but we have got a bit of wage inflation and growth. why has sterling been weak against the dollar? you can see why the dollar has been strong against other currencies, but not so much against the pound. do you think the pound is a bit too weak? >> well, right now, of course, the policy discussion where the bank of england is heading is dovish. inflation is below the 2% target. core inflation is below the 2% target. when interest rates are stuck at zero, the bank of england will concentrate on low inflation. it can't cuts rates any further but it can hike them. so when inflation is low, we'll just wait it out. and that is why of course the discussion right now is dovish for the bank of england. looking furthd forward, it seems to me some o

we have even seen scuffles, got to love that word, breaking out in tesco stores.espoke businesses are plugging their own black friday deals. diamond designer bobby white says the day always brings in new customers. manus cranny went to meet him in the heart of london's diamond district. we have been working on a few pieces. this one is around 200,000. >> made bobby white, london's very own diamond geezer. he is at the heart of the capital's diamond district. enjoyable one was working with beyonce. >> her and jay-z? two were my highlight. >> you are a master craftsman. that doesn't happen overnight. the skills involved in putting a 200,000 pound piece together, it is time and skill. >> it does take a long time. i am really passionate about making things perfect. it looks like the stone is floating. i have little back stairways and offices in the back. streets with all the pretty shops, that is not really where i do my business. it is all upstairs, basements, that sort of -- >> design, service and master craftsmanship. all the elements that go into creating the perf

tesco and stains bury lost what was in between. >> at what point do us i need to cut my losses and wait on the sidelines for the companies to improve their growth margins? >> absolutely. in fact, you rewind about a year ago, the three years previously it was gaining market share again. but nonetheless, caught in the middle. >> now, still to come on the show, the u.s. and china coming together to fight climb change. but the two super powers still stand opposed on several issues. we will discuss after this break. >>> the u.s. and china have unveiled a landmark plan to curb their greenhouse gas emissions in a surprise move ahead of the fresh round of international climate negotiations. president obama and xi jinping made a joint statement in beijing expressing shock at the scale of the commitment. during the press conference, obama and xi jinping sparred over democracy protests in hong kong while the two confirmed they had discussed human rights. and i suppose, seema, despite the republicans back home in the u.s. being a bit critical because mitch mcconnell came out and said they were unre

. >>> tesco is considering the sale of its banking unit in a move to raise up to 1 billion pounds for the weekend supermarket. the new report shows dave lewis, the ceo, has been forced to look at the assessment of selling the business in the wake of the scandal. shares have fallen 30% over the last three months. seema, what is up next? >>> coming up on our show, richard branson fights for the survival of a virgin galactic spaceship program as new details of this weekend's deadly crash emerge. >>> and could china's housing market be on the brink of a recovery? we hear from one guest who says central bank action is lifting the sector. >>> plus one day to go before americans head to the polls. will the senate turn over to republican control? wee get the full story at 11:40 ct. how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge

tesco is up 1.36%. after hsbc raised its rating on the uk growth. the bank raised its prime target to 240 from 195 which of course has been struggling. looking at bonds, we saw u.s. bonds coming up, a fraction as the 30-year auction didn't go quite as expected, but nonetheless covered. and yields in general across most of the major markets are much less volatile in october than they were in november. so far today, relatively bearish move towards but we haven't seen the same move in equity markets. let's look at kinosi next. oil has been in focus for the last few months. nymex, now $74. brent bounced back a bit, 0.5% today. but, of course, still below $80, significantly weak. gold is set for its third week of falls. let's check in on markets in asia. sri jegarajah is standing by in singapore with us as ever. sri. >> very good morning to you, wilfred. a patchy session in asia as we wrap up this week. you were talking about oil at new fresh four-year lows. that has hurt the lovely energy council in the region. i want to highlight the great china market

warren buffett said the tesco deal was a mistake. warren buffett says that was a mistake. >>> vladimir putin says russia will intervene in the rouble if it continues to slide. we'll have more on his comments out of the apex summit in beijing after the break. >>> welcome back. we'll give you headlines. president obama falls on china to create a level playing field to operate within its borders. and russia's government says it will put an end to the slide of the rouble if that continues. and the u.s. is looking the bribery probe at petrobas. >>> as we just mentioned, president obama took the stage at the apec summit in beijing in the last hour sending a direct message to his chinese counterpart to get series about trade reform hinting at the use of the anti competitive practices. >> deepening our economic ties is why i also hope to make progress with president xi toward an ambitious high standard bilateral investment treaty that opens up china's economy to american investors. we look to china to create a more level playing field on whi