and now, tesco. in all honesty, they're not very many more independent broadband businesses to look at. what a show use is the strength of both financially and for our customers all the talktalk networks. we are welcoming tesco's broadband customers. you never say no to having more customers join our network to there are not very many large space right now that are independent. >> thank you for joining us this morning. diana ceo of talktalk. richard, i want to get he first. -- get to you first. are you attracted to telecom stocks after the back of that story? >> it is quite interesting. what we are seeing are people trying to reinforce their space in the marketplace, through telecom. in particular, to provide more content. not so much about networking now, and that work is important but what you can provide interactive content. >> we have to leave it there. a picture of the markets. the ftse 100 this morning, it is higher. the big story is tesco, stock up by as much as 6% this morning but will talk p

and tesco is cut. more on what it means for the company's turnaround plan. ♪ >> on to today's company news. tesco plans to raise seven and a half alien euros to strengthen its capital. will also cut its dividends. it has offered investors. the decision to seek funds comes after santander's investors concerns that buffers aren't as strong as competitors'. has agreed to pay a record $70 million in fines for underreporting injuries and deaths linked to potential defects. the automaker failed to tell the u.s. government about more than 1700 errors. it says the submissions were due to inadvertent data entry or computer programming errors. starbucks chief operating officer is going on extended leave. the company says it was a personal decision and order to spend more time with his family. starbucks's second-in-command helped plant a similar break in 2008 was persuaded to stay by the ceo. apple has that back at criticisms were manufacturing devices overseas. the iphone maker says it has created over one milli

what's going to make you buy tesco?ce, i would say i am more in the buyer camp than the summer camp. there may be a small -- to get out of the stock, the sellout. if you're taking a medium-term view of six months to 12 months the management is working hard to put that together. the main thing was you saw that tesco started alienating the suppliers, the community. so there is a lot of -- on the w hole i would now start averaging out over the next few months of a quarter if i was going to buy the stock. >> thank you very much. he stays with us. we will have more from him later on in the program. >> the first 12 minutes of our 7:00 hour on "countdown." france will observe a national day of mourning in the aftermath on the attack of the satirical magazine. hans nichols is in paris with the latest on the search for the suspects. good morning. what do we know? >> good morning. we know from the french prime minister that this is a country that still potentially fears another terrorist attack from these two individuals. he was

there's a place for tesco in the u.k. tesco doesn't need to slow down.i and little slowing down is sufficient for tesco to stabilize. you don't need to expect tesco to grab market share back. >> stock is up this morning, but down 40% on the year. what is your rating? >> outperform. we are not saying yet that tesco will be a major value recovery story. we are saying there was excessive pessimism in the stock. everybody thought dave lewis would do nothing. look at all these balance sheet -- excessive pessimism wasn't warranted. i think we have to wait another six to 12 months before we get a proper recovery. >> thank you so much, bruno monteyne. coming up, as ukraine's prime minister talks in germany, we will tell you why george soros thinks the west should be doing more to counter the russian threat. ♪ >> welcome back. you are watching "the pulse." the billionaire financier george soros says western leaders are underestimating the threat russia poses to ukraine and their mishandling of the situation poses a threat to disintegration of the euro zone econom

tesco has cut its dividend in full and yet still bounced 7%. it shows the levels drop. >> a 50% decline in shares of tesco. last year, a big fall one of the biggest losers. i think investors who have been caught on the wrong side of this trade are looking for some type of commentary from management about what they're trying to do to turn around their company, rebuild confidence with shareholders. taking a look at marks & spencer, just that individual story, they're blaming unseasonal aus item w, but there clearly is more to this story than just weather. interestingly enough international sales were impacted by the crisis in russia. there was one emerging market that saw exceptional growth. marks & expenser has exceptional presence in india. more on m&s coming up. >>> still to come on wek, we turn our focus on the bank of england ahead of the central bank decision later today. that's straight after this break. >>> and we will be bringing you the latest update on the shooting incident in paris. we back in a couple of minutes. >>> a gunman is on t

tesco sales up 30%. caroline hyde will take you through all those numbers in terms of how much you will -- tesco is up 1.8%. does that lay the groundwork for tesco's? marks and spencer is a trade up, depending on how you look at marks and spencer's in terms of quality and the food that people go for a christmas time. you mentioned oil at the start of the trading day, johnny. brent dipping below the $50 a barrel levels or the first time since 2009. i can tell you this. both of these contracts -- surging in the commodity oil market. 60% in the american contract. china is not going to save you. they are not going to stockpile. opec may rustle the view that they need to deal with overcapacity, but they really haven't had the challenge brought to them enough to do so. bond markets. how should you view declining bond yields? g3 bond yields are below 1%. united states of america, japan, and what you are seeing their is a real view of disinflation or are people reversed the risk? those are 10 year government bon

the other story, tesco. the stock rose dramatically yesterday after revealing an update to a trading strategy. you saw the move in the stock. shareholders might have liked the news. check out the performance of tesco debt yesterday, falling off a cliff dropping like a stone. the debt market saw it coming. tesco was about to get downgraded to junk and it did. here with more is caroline hyde. what do you think was the final thing that made the credit rating agencies say, it is time to cut? >> i think it was almost what gave euphoria to the stock market the fact that they were going to get even more competitive. the fact that they were going to be cutting prices was what moody's seems to have focused on. moody's is the one that has moved here. 9:00 p.m. last night, they cut their rating to junk. one step below investment grade. they say the issue was the fact that margins and profitability were under pressure. tesco is adding fuel to that fire. yesterday, we heard dave lewis drastic dave, it was them that reduc

let's look at those tesco share prices. tesco having a lot of trouble.rently at 216.95. >> the stock actually moved on his comments. we have retraced some of those gains. there was also -- [indiscernible] nevertheless, mr. ackman having his influence on the company. >> mr. ackman looked at tesco. can you imagine if he was an activist in it? that brings us to our twitter question. does activism work in europe or should it work? >> time to look at luxury. 2015 could be a challenging year for the luxury goods industry. one firm did end last year on something of a high. we will take a look at the year ahead for luxury goods with bloomberg's intelligence analyst. first, caroline hyde joins us to look at why burberry has some unexpected numbers this morning. >> i think optimism being founded there on the profitability side of burberry. sales did climb 8%, matching the previous quarter. many analysts thought it would slow down. when you dig into the regions europe, middle east, africa looking strong. we also saw strength in the americas. robust even in china. p

look at tesco.ave to admit that. we have had our difficulties with retail and a lot of structural changes owing on. we occasionally look at companies in the u k. >> you look at tesco the last six months? x yes. >> um jcpenney nightmares? everybody trying to your first a slump in profits. chipotle has quit selling or about one third of the 17 restaurants. a supplier was not complying with chipotle's animal welfare standards. no word on when it will be back on the menu. consumer gas prices should be encouraging more spending. we get indications that may say otherwise. tiffany's, it just found its annual forecast and shares down as much as 15% in one day in the chart. everything last year's game. is this an isolated issue or underlining something much bigger in retail and consumer us ? i want to bring in the former ceo of brooks brothers and many other retailers. also with us is my guest host for the hour the cofounder which carries the shopping experience largely online, on mobile. 80% of your shoppin

many felt that tesco did significantly better than expected.morrison has a bit of a pickup their as we went out to feed ourselves over christmas. but more things to come. tesco said they would be closing stores -- more than 40 unprofitable stores. morrison will be doing the same saying they are closing 10 stores in 2015. drastic steps to come. perhaps some of those tough calls that morrison re: made the fact they were bringing out a loyalty card transcended the discounters -- that seems to slowly be working. not enough time. they want new people at the helm. the new chairman has are even named as andrew higginson. >> morrison stock up 5.2% right now. 2014 was the worst year in you kate retail since 2008 according to the latest data from the british retail consortium. -- u.k. retail since 2008 according to the latest data from the british retail consortium. i want to talk about whether this is a leadership problem or whether they are victims of a rapidly changing market. >> i think there is a degree to which -- few people doubt that dalton phill

>> we don't focus too much on what tesco is up to. sure we have the right strategy and offer for our customers. the results we announced today but not just them the results from the last five years demonstrate we have absolutely got it right and there is great opportunity for convenience in the bank and parts of our is this seeing double-digit growth. we are optimistic for the future because the u.k. is a tough market. >> you are optimistic but you say you see the rest of the year as challenging, what assumptions are you making about consumer spending because you could look at the oil price and suggest consumers will spend more on other things, what do you make of that? >> i think the optimistic view is with fuel prices coming down and deflation, customers have more money in their wallets to spend. the optimistic view is they start to spend that within the supermarket sector. unfortunately we have not seen that to date. we have seen other sectors like auto and holidays or anything else. the optimistic view would suggest that we hope c

tesco is for an easy comparison. it looks like they are down again.hink the story for tesco is going to be what the strategy is and how much costs are going to be cut and where assets can be sold. >> are we expecting to get the strategy off the back of that? what's i think there will be something. we have an analyst meeting just before midday. -- >> i think there will be something. it's more than a sales number. i think the u.k. trading strategy is going to be the key thing they are going to discuss. they have already started cutting prices. i think we're going to hear how much costs are going to be cut. they got 39 head offices in the u.k. i think we're going to see that number come down quite a bit. >> thousands of jobs expected to go. we could see a portion of that being sold. there are all these things being debated. >> the balance sheet is almost certainly needing shoring up. the question is what is the use where they can find the capital to do that. it is unlikely to raise much money. it does give you access to the whole tesco customer base, whi

tesco is down by 36%. only gregg's which you would not really call it a supermarket, is up.retails declining. >> there are a lot of elements in their. >> retail sales are up 15%. >> there is a lot going on in the retail or. -- retail sector. >> greece is never far from our top stories. that is the words of the greek finance minister. he has given us a wide-ranging interview on his nation's prospects. >> eestnet general election takes place on january 25. the leader has promised to write off some of greek's debt. >> greece could be forced to leave the euro. he wants to strike his own deal with the european commission, the international monetary fund, and the european central bank. >> let's go to athens where he has in speaking exclusively to the country's finance minister. >> it was a wide ranging interview. we spent an hour or so with the eye nantz minister. he said there is an and norman's -- enormous amount writing on these elections. if he wins office and forms a government, it is imperative that he sticks to the commitments to greece's creditors. >> has to boobey by the

the interim statement is going to be about restructuring at tesco's. >> thank you.l through the week. >> you're going to get more than you thought you could possibly have. we will be back with the tesco numbers. it is @markbartontv. i have done a little bit of merkel. i have done a little bit about the big bond boy. >> will he get it right again? >> nouriel roubini. we are talking about technology and third industrial revolution. remember that stavros is over the snowy horizon. -- davos is over of the snowy horizon. >> great words this morning. coming up, u.s. equities a good year. that is the word according to forecasters. analysts predict an 8% advance this year. the outlook for the market next. >> rbs is slashing its bonuses in response to new rules. but according to reports sunday. -- that is according to reports sunday. the total may fall as a result of the european cap on bonuses at 100% of salary. the bank awarded 576 million pounds in bonuses last year. it is fifth time lucky for the chinese company, which won a bidding war. they valued the french resort com

i heard you talk to you about tesco, a british retailer.his is the third largest retailer in the world even warren buffett has a stake. what did he have to say on tesco? >> this was surprising. he came on and said that pershing square does not get enough attention here in europe because investors do not know what it is. he came to do a bit of a pr exercise because he thinks his stock is undervalued. i asked him, olivia, why not come after a big company here in europe because if you are bill ackman, you are probably one of the best-known activists in the u.s., a little less known here in europe. if you have a big deal, the networks will stop he said he did look at tesco in the last six month, but retail has not been his strong point. he says he has been burned before. he says it was something that he was not that keen on, but the share price moved on it, so maybe investors think he might come back to it. >> there is a touch of futility here, and that is always good to see with bill ackman. you see has bang up year, and you compare and contra

tescos that happens to all of us. >> i hear you. we'll keep it there. thank you for bringing us the latest and your perspective on what's happening in the u.k. supermarket space. but other use to bring to you, songbird has advised investors to reject a take over bid saying it undervalues a firm. the latest investment author is a 2.5 billion pound bid. shareholders have until the 29th of january to make a decision. >> eco world investment a malaysian owned private vehicle has developed three sites in london. 428.7 million pounds. >> still to come here on worldwide exchange. never mind the dramatic drop in crude prices there standing by opec's decision to stand back. we discuss after this break. >> oil takes another lick down with them both slumping around 2% near a six year low. the dramatic drop in prices not only hurts iran but other protusers including saudi arabia and kuwait after the united arab emmirants said it would be at lower levels and the organization had no plans to meet before the next scheduled meeting in june. oil is

the tesco market consensus has been so for a while now.recently sainsbury joined in the unfortunate camp. >> given that these companies are expected to incur further price cuts to stay competitive in the super market space, i guess the question is how does that impact profitability going forward for sainsbury, tesco among others? >> you're absolute lit right. one of the reasons investors had been sticking with sainsbury was that they were effectively being paid to wait for its recovery. the dividend yield is running at around 0.7%. as we can see in the fourth coming quarter. that figure is likely to drop. so one of the main planks of a reason to have held saps bergry shares is being removed. >> when we look at whether we should be holding sainsbury or not, it was around 35% last year. to what extent was this affect by its stocks and to what extent is that decline fair? >> yes, sure. some of it is unquestionably a read across. he think it's fair to say tesco has had a tougher audience than sainsbury for its problems. it central a concern of

. >> what about tesco's? >> we now get more unveilings from the high street players.is of course grocers. they have been having price wars abound. sainsbury's comes out on wednesday. we will likely see like for like sales decline. anywhere up to about 3%. and an s does well on the food front. we trade up for a bit of luxury. general merchandise, they did not set themselves up for online. they had disruptions. they couldn't deliver the next day as planned. they are going to have problems in general merchandise. tesco was all going to be about the recession. >> the trading has been quite difficult. it is really about how they can set themselves up to have the right price in their merchandise and the right cost structure for what is going to be a slimmer operation. that means things like researching in head offices that they told us about in the u.k. they told us in october, that number is going to come down the number of people in head offices. the way they buy merchandise has to become a lot less complicated. it has to be simpler, like the discounters. so you are deali

numbers out this morning, tesco numbers out tomorrow.hyde is tracking all the action. >> the stock has been quite volatile. four quarters, we have like for like sales declining. we saw sales fall off 1.7%. there is a little bit of relief coming in. people have gone to online and it is all about trading up. one step that amazed me, 57 million men's ties sold. that is enough for 89% of the u.k. population. >> i have to say, i have more than one. >> it evens out. i don't even have one. >> i may have more than two. >> there is a caveat. they haven't done as badly as has been expected. last year, their share price was the worst since 1989. but they are warning that things aren't getting easier. price inflation is here to stay, they say. they have the fourth quarter likely to continue on a sales decrease. >> [inaudible] >> this is what everyone has to work out. they are pulling in one billion pounds over the next three years, which means 300 million pounds in the next quarter. half of that over the entire year. it has a lot of catch-up to do i

. >> the background to all of this is, rather like tesco, mcdonald's apparently, you can start as thee drive-through and make it to the top of the company. >> don thompson started as an electrician. he worked his way up over 25 years. he did try to change things. we are seeing the problems mcdonald's is facing. you've got sushi, you've got mexican, you've got so many other types of fast food that seems healthier. you also got other burger brands to dominate. you've got shake shack, five guys. all of them have a far better marketing stance. it is homemade, fresh healthier. you dig into the numbers, five guys is far more fattening. >> is this the big challenge, to convince the public that these guys aren't healthy? >> he's got to lower over the millenial's, 20-30-year-olds who want to be shopping elsewhere. he's got to prove that this is still a cool brand. he has bitten off a bit of this. when he was heading the european brand he ruffled some feathers. he took some hits on the chin. he actually had a tv interview with the guy who wrote "fast food nation." he said look, i want to prove

tesco is just below flat. it was earlier slightly higher but this on news it's going to cut jobs and change supply contacts. this is following an accounting scandal. a terrible year for tesco. club med is down 2.35%. it is for more on this story on club med, we'll join stefan. happy new year. >> happy new year. they are in for the longest battle in the history. club med is a french resource company on the view of its shareholders. the chinese investment company is fighting to see this happen one year ago. just before the weekend they decided to drop this considering the evaluation was lower offered by foreign international. club med didn't make profit in the last two years and the company lost 11 million euros this year. and they didn't pay any dividends since 2011. the share price is up 45% in one year because of the battle to take control of the company. now they are offering the company an offer in the coming days. the chinese tourists will hopefully boost the future of club med and this is the second large

tesco up 15% today. the ceo announcing how they are going to reinvigorate the huge retail change. they are going to basically limit their costs to about or cut overheads by 30%. close about 43 stores and take capital expenditure from 2 billion this year to 1 billion next. >> simon, thank you very much. when we come back, take a look at the markets here. dow is up 288. pretty good action all around. this will be the dow's best day since december 18th. although if we're up more than 421 which it was on that day we'll have to go back on the calendar. isn't the only return i'm looking forward to. for some, every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal. start investing with as little as fifty dollars. your mom's got your back. your friends have your back. your dog's definitely got your back. but who's got your back when you need legal help? we do. we're legalzoom, and over

. >> this happened at a time when he has admitted to at least one mistake, which was tesco.and marketing issues. ibm has been a dog for warren buffett as well. investors seem to have excused it. >> part of it is because he is so honest. i made a mistake, let's move on. >> he has 50 plus years of a record. >> he is the guy. he has carved out it works. he has a $200,000 stock price? >> close to it. what also hit a record highest -- hit a record high is facebook. >> this one kills me. the media, we cannot invest in the stock's or the companies we cover. i do not buy and sell stocks. when facebook was coming down, i was working on the floor of the exchange. a billion people uses. they will figure out a way to monetize it. >> i don't think people realize how many lovers they campolo to bring money out of this thing. >> if you do not make money you have a problem. >> that does not mean the stock cannot go down. >> absolutely it can go down. >> number two, a vote of no-confidence, pouring money into vanguard group. they said i am going to put my money and and go to sleep. they did

shares of tesco are up 11%. david lewis has continued his turnaround plan. let's return to our top story. overnight, tens of thousands of people gathered in squares across france and in london and in berlin and new york to pay tribute to the victims in paris. crowds assembled with signs and smartphones saying je suis charlie. please continue their search for the gunman. there are new details that the suspects may have been located in the north of france. >> this is about 80 to 100 kilometers to the north east of paris. the bbc reports that they have more opt -- may have robbed that gas station. police are trying to ascertain where they are. this is a city that is going for a manhunt and a country going through a manhunt. this morning, there was a moment of silence and cheering and charlie hebdo will come out with a publication next week in an act of defiance. there has been the shooting were one police officer was left dead in the south of france. police have not said whether or not that was related to yesterday's shooting. it appears as though a mosque in t

and it's just -- it is already cheap for tesco. back in november she dragged me down there and you could buy booze at 50 a bottle. prices are still quite low. the dynamics of the industry are such that it's going to be a real challenge to drive that forward. >> why have they suffered so badly? if we forget about the internal issues b, it's not just that the discounters are cheaper, but is it form of their operations are going to suffer? >> i think so. if you become a market leader and any wildlife program you want to watch, the young cubs coming in and as soon as they start stepping out of line, they're squawked or eaten. rather than saying, you might be a danger jump on them then. they grow and get some traction just as jjb with let exports directs grow and consumed themselves. if you see an you better jump on it straightaway. >> if you look at the dividends, is it something to stay the heck away from? >> you know that boor guy has all these factors. a $3 billion pound bengz deaf sigz as well. >> just very quickly, a one liner top

he did give us a nice scoop that he was looking at tesco.ave heard about it in the states because it is the third grocer in the world. they have had trouble in the past. last year, the shares were down because of a profit overshoot that resulted in a fraud investigation. he said, they would rather invest in the u.s. for the moment. >> bill ackman has always been a highly confident individual. >> that is a nice way to put it. [laughter] >> now that he is on the cover of bloomberg markets magazine and had an incredible year, do you find him even more highly confident than usual? >> he was maybe a little bit more subdued. he was quite charming. he said he is looking at opportunities in europe. >> you -- we have to leave it there. stay with us. ♪ >> live from bloomberg headquarters in new york, this is "market makers." >> welcome to "market makers." erik is on assignment today. we have bill cohan here to help us out. most days i think it is a travesty that we don't have a commercial cam on the show. even when erik is not here bill delivers great

. >>> tesco, after a strong day yesterday, is off 2.3% today.that's after moody's downgraded the debt to junk level. this comes after part of a massive restructuring plan. they hope to return to strength after fourth profit warnings and an equitying scandal next year. >>> coming up on "worldwide exchange," after a rough start to the year appearing has one of its best days in over six months as it reveals record sales at its app story. we're going to discuss that. also, what is the outlook for commodities? we've been seeing some big moves in oil. one guest tells us why this could be the year for metals to shine. we brick you a key roundup ahead of other names in the sector to watch, that's coming up. >>> the eurozone isn't in deflation. the comments come after cpi drop 0.2% in december which marked the first negative reading since the financial crisis. in a television interview, he said it's worth considering whether weak consumer prices are short-term or long lasting. reiterated his willingness to tackle low inflation with additional methods inc

tesco gurry jack cullen started an apprenticeship at 14. all successful because they masked themselves in the world of work at an early age, acquiring teamwork and communication skills. do we have these skills? the government claims our education is more diverse and better prepares us for life than ever before. yet 76% of employers say we're not ready for work. schools want us to quote shakespeare, but employers want us to have soft skills. if the aim of education is to prepare us for work, how did thee two things become so detached? work experience was made optional in 2012, burning the bridge between education and work. now 57% of companies say young people lack communication and teamwork skills. why is this? school is structured so you're surrounded by people your own age. life is not like this. in the workplace you must work with people of all ages and all backgrounds to get the job done. would you learn to drive a car through theory? would you learn to play football from a book? no. you learn these skills by actively doing them. so why