a strong tesco would make it more difficult.oline: meanwhile, the theme has been breakdowns. -- writedowns. charles: the value of your property is what you expecting future sales. the expectations on future sales have gone down compared to what they were even two years ago so you have to reduce the value of the property. the return on capital of the industry overall has dropped well below the cost of capital. the way to get out of that is to reduce the amount of capital in the industry. mark: can sainsbury's turn things around? charles: probably. every time we have looked at the supermarkets going back even to the 1970's, people have thought -- this is such a disaster, we can never get out. then five years later population growth or income growth or something, people start to go back to the shops again. mark: we shall see in 22 minutes. thanks a lot. caroline: meanwhile, it is deadline day in israel. after seven weeks of coalition talks, benjamin netanyahu has until wednesday night to form a stable government and he may not make

that was the case with tesco two weeks ago.he share price opened positive and at the end of the day was negative. the share price is now falling off and the reason for that we think is because within the statement they talk about the 150 million pounds of price cuts which they have said they will do. now they are talking about that number rising to 200 million pounds and it is really a sign that all of these mainstream grocers are having to put through even more price cuts just to stay ahead of the game or in line with the game where all of these discounters are making them stronger for business. guy: you're talking about the discounters. we still don't know yet how aggressive tesco is going to be. we still -- the expectation is that tesco is going to hit the price point pretty hard and that is going to affect sainsburies' and morrison's. it could be more than that. it could be in for quite a long duration. >> ultimately it could be. i like to think the tesco effect -- if you can imagine sainsbury being in a box and two walls c

they really do like that tesco news. after that payoff to mr. clark. the mining companies, why am i surprised? china's growth numbers are disappointing. the aussies are worried about the chinese level of growth. of course you are seeing billy's up. glencore is up. that will be one to keep an eye on. rio tinto up .80%. we will wait to see what these pmi's bring us. jonathan: what a busy morning. french pmi's coming through in the last three minutes for it 49.3 is the reading for manufacturing, slightly better than the survey of 48.5, a pickup from the previous month. it is getting better. i am looking at services 54.6 below service, 51.9, a pickup from the previous month. the preliminary reading for may, 51.0. not terrific numbers, that picking up from previous months at least. later, german pmi is coming in 30 minutes time. eurozone the key my 9:00 a.m.. -- eurozone pmi is coming in at 9:00 a.m.. earlier in asia, we had pmi data out of china for it hsbc coming in at 49.1 for may, missing number estimates and showing a third month of contraction in this

interesting to talk about whether they have any interest in the tesco mobile business.looks as if it could be on the block. we will be speaking to the ceo in her first interview of the day coming up on this program. manus: let's go now to markets in asia where he has yet another recall. expanding its global recall to 4.8 9 million cars. let's get straight to david england. this goes on yesterday's news run us through it. >> yesterday we had that two other carmakers. today it is honda. we knew it was coming and they are ready flagged us and said they were working on the details and it just came out about an hour ago. you mentioned 4.9 million cars. if you look across all the carmakers that have been affected by these global airbag issues. what is different about this time, this round of recalls, they have said they will be paying for this round themselves because it is more proactive and preventive in measure. something to watch closely. we did not react and we knew this was coming. a smaller round here of recalls. because of problems with the brakes. fairly new ones. we

guest:, the question that everyone is posing is, will tesco pose a threat? >> i agree. jonathan: charles allen, thank you very much. the ftse is up. a rougher ride earlier this morning and the 10 year in italy is also higher. the 10 year remember the days we were counting to zero? a lot to talk about for the day ahead and we will do that after the break. jonathan: let me get you some data. the final reading for services and it has not been decent. not as much as the pickup. we will get the pmi from germany. it was a top of the agenda. you have been all over this. we have to talk. what was the decision. >> would have been rather cautious. the greek collateral haircuts were mentioned and not discussed. now, the time is to go there. you could reduce emergency liquidity and it is one that people will easily misinterpret. there is another way of saying we are worried about it. these us and collateral requirements go back to last year. jonathan: thank you for joining us. i want to bring guy johnson into the situation. it is he morning for economic data. guy johnson: the story

this follows weaker sales and earnings with tesco posting the biggest loss in it's corporate history. let's talk more about u.k. growth with the managing director joining us in the studio now. you would think that after tesco's big loss we have now hit that. >> people think this is a bit of a kitchen sink. all three have shown us this is a long hard road ahead. but the trends people want to spend more conveniently closer to home. people want good value. people want a discount format and the fact that most of our large supermarkets are exposed to large store where is people don't want to walk a mile to buy a pint of milk anymore. that's the big problem. >> i know that they're losing shares to the big discounters but if they can't be profitable and increasing shares in market sales now in an environment very conducive, when can they? >> that's the point. what you're seeing is the consumer is spending a little better but the consumer is focused elsewhere. a lot of nonfood retailers are doing well in the u.k. frankly they had a lot of free publicity last year and they're not getting it th

they are receiving pricing pressure from tesco.es: the big story on margin is that gross -- growth margin of going up. they have depended on legacy full-service vendors. they are now going directly to factors -- factories. they can buy cheaper, but they have the cost of shipping back to the u.k. and disturb eating themselves. jonathan: big picture retail when the oil price plunged, the story i was told that it would be great for the u.s. consumer compared to the u.k. consumer because taxes are high. in u.k., that has not been the story, in the u.s. and walmart numbers what is the story for the u.k. retailers? charles: the story is good overall. we have a bit of a law all over the election. . peri in terms of retail salesod. you will see a bit of the renaissance coming through particularly over the summer. across the water in the state sensitivity around oil prices is great. particularly the bottom and consumer, you see the oil price go from $40 to $60, that is reflected because they have more money in their back pocket. if the pric

tesco government involvement is significantly more dangerous for religious or could it issues to be about than not. the strings are always attached as far as the federal government, i would recommend people look at where the money is going because a lot of the time it goes towards adoption projects and house building for the homeless. i object to that on the grounds i don't think the government should be involved. that is nothing to do with the money being spent on an attempt as an issue. i'm not worried about that in the united states. >> host: ben shapiro, best-selling author, editor at large at

tesco government involvement is significantly more dangerous for religious or could it issues to be about than not. the strings are always attached as far as the federal government, i would recommend people look at where the money is going because a lot of the time it goes towards adoption projects and house building for the homeless. i object to that on the grounds i don't think the government should be involved. that is nothing to do with the money being spent on an attempt as an issue. i'm not worried about that in the united states. >> host: ben shapiro, best-selling author, editor at large at breitbart "the people vs. barack obama: the criminal case against administration." his most recent book is coming out in paperback. thank you >> coming up next booktv in our coverage from book fairs and festivals around america. later tonight we have ben shapiro in his book "the people vs. barack obama." >> next, we have a discussion about concussions in the future of football. from the annual tucson festival of books. this is one hour. >> first this is the co-author of league of denial, the nfl

have won aand tesco contract to build a power plant in qatar.deal would see them taking a 30% stake. construction of the facility is due to begin in 2017. erraro is set to open up a plant in chocolate. the makers of new tele--- nu tella will employ as many as 300 workers. rraroeport also says fe will not reduce activities at home. memorial day weekend in the u.s. marks the traditional start of the summer box office season. there were some big movies on "tomorrowland." and krueger has been running through the listings. nothing to shout about. reporter: george clooney, people would normally shout about. three has a star role. he plays the boy genius. "tomorrowland" did take number one listings with $151 million. last year's was $187 million. i guess george clooney helped, but not enough. in second place "pitch perfect." 34.3 million. "poltergeist," the remake brought in $23 million. angie: mad max, the first one was mel gibson. it was a very low budget film. made for a million dollars or something like that. here --e wearing hockey gear. now it is

anna: let's get some breaking news on tesco's.re detail coming through from them in their annual report in what has been or could be awarded to other senior executives. saying they will seek recovery of their former ceo's pay if gross misconduct is proven. the former ceo clark who left the business, you will remember at the height of that accounting scandal that led to substantial financial losses or penalties for the business. the determination payment was 1.2 2 million pounds. they are saying there was no additional payment, a bit more detail on the current management as well. his total remuneration at 4.1 million pounds and alan stewart 2.3 million. mark: the federal reserve officials unlikely to raise interest rates in june. the minister from that april meeting shows they are leaving open the option of tightening later this year. the fed expects growth to pick up after stalling even as consumers worry about spending. a 13 month low. the preliminary number from hsbc came in at 49.14 may. the number underscores the lukewarm resp

tesco and others are in the process. that is good for consumers. francine: enjoy it. i like that.francine: thank you so much. dame deanne julius stays with us. here is a look at what else is on our radar. deutsche bank has put both of its co-heads of corporate finance in asia on leave. the decisions were unrelated and no interim head of corporate finance has been appointed. the head of the private business client division at deutsche bank is preparing to step down. carl icahn says that apple shares are undervalued and are worth $240. he called for a bigger buyback. his new enthusiasm comes as the market debates apple's driving sales growth. an agreement will add to the mongolia mine and the rio tinto. before we get to our twitter question of the day, we bring you news that president obama has finally joined twitter. his handle is @piootus. the already has more than 1.5 million followers. there was a very funny exchange between him and bill clinton. which other world leaders should be on twitter? tweet me. ♪ francine: welcome to "the pulse." the european commission has ruled out th

it is not quite as big as tesco. and nowhere near as big as walmart. it is creating a force.e that what had significant presence in the united states. this is where the overlap does make sense. because ahold has stop & shop and delhaize has food lion. they get 60% of their sales from the united states. this would remove some of the concerns over margins, over profitability. it would be a juggernaut in terms of sales. 50 billion euros in sales for the two together. some analysts have been running numbers. one looked into the creation of cost savings. 400 million euros could be saved by these companies merging. both groups benefit from this transformational deal. we have got to hold her horses a little bit because if you look at the quote in a statement, delahaize group entered into discussions to explore the opportunity. but you have got to remember it may not result in a transaction. they always have to say that. back to you. guy: thank you very much, indeed. francine: alliance said first-quarter profit -- we spoke with the company's cfo. >> when you look at the trends, in to

tesco shares are moving higher. the process of selling the company's south korean unit will begin in july. they have not commented on the report thus far. you can see up 1.3%. underlying full year profit. gains were capped as the children's brand said there is still much work to be done. you can see down 0.8% after reporting full year pretax profit of 400 million pounds. that's down from 1.6 billion last year as it was hit by exceptional charges. the u.k.'s leading postal service said conditions remain challenge challenging. boosted by asset management and wealth management businesses. they also increased the full year dividend. he was asked about a currency probe. >> we don't know what it's about yet so at this point in time we'll have to see where it leads. it's hard to know what they're looking for. >> meantime a senior greek lawmaker warned the country will be unable to make its payment. in an interview, the spokesman said quote, now is the moment of truth. a 300 million euro payment is due on june 5th however o

tesco have had a pretty tough time and they talked about behaving after the problems they have made.at's something the politicians have got to think about too. >> the one thing i think the business needs and this is the difference in view we need to stay within the european union. i think it would be a disaster or business. give david cameron credit i'm afraid he's been dragged by his party to exit from the e.u.. i have to say this audience i've got to say to this audience that would be a real problem for our country. >> the woman up there in the back. >> we talk about unpaid tax. if your party were empowered to think you could bridge the gap between the richest and the poorest? >> what is your name? >> shirley. >> it's a great question surely and let me in answer it directly. yes and the rule that shirley is referring to basically means you can live here and work here and be permanently settled here but not pay taxes here. it's been in place believe it or not or 200 years. that's that's 40 prime ministers. i'm going to get rid of it because i believe in a country where there's one l

tesco government involvement is significantly more dangerous for religious or could it issues to be about than not. the strings are always attached as far as the federal government, i would recommend people look at where the money is going because a lot of the time it goes towards adoption projects and house building for the homeless. i object to that on the grounds i don't think the government should be involved. that is nothing to do with the money being spent on an attempt as an issue. i'm not worried about that in the united states. >> host: ben shapiro, best-selling author, editor at large at breitbart "the people vs. barack obama: the criminal case against administration." his most recent book is coming out in paperback. thank you >> it is memorial day weekend on booktv. three full days of nonfiction authors and books. some of the topics that we're featuring this weekend include the iraq war, america's infrastructure, terrorism, washington d.c. and the civil war and first ladies. the some of the authors you hear from including former senator george mitchell, cornel west, dana perino

tesco government involvement is significantly more dangerous for religious or could it issues to be about than not. the strings are always attached as far as the federal government, i would recommend people look at where the money is going because a lot of the time it goes towards adoption projects and house building for the homeless. i object to that on the grounds i don't think the government should be involved. that is nothing to do with the money being spent on an attempt as an issue. i'm not worried about that in the united states. >> host: ben shapiro, best-selling author, editor at large at breitbart "the people vs. barack obama: the criminal case against administration." his most recent book is coming out in paperback. thank you