top headlines -- the u.k. vered the outlook lost after the financial crisis after growth powered ahead for a sixth quarter. say 16nian officials people were killed in a shelter run by the u.n. in northern gaza. it was hit during the battle between israel and the militants in gaza. the shelter also served as a school. seven children among the dead. diplomatic efforts have intensified to end fighting. preparing to sanction russia. top security officials after the downing of malaysian air flight in ukraine. watching the story develop. is a story we are watching. artillery fire is now a big part of the story as well. anding ms. out of russia ukraine, the first time american officials are alleging this is happening. we have got the russians helping the separatists directly. in russia, breaking news russia's rate decision is out, it raised key rates to 8%. the estimate was seven .5%. the ruble has been on a the last trajectory of few days. strengthening this morning. 35.0166.ble at not a big move. manus cranny has mo

are the u.k.'s seven lean years over? the country's growth rebound through the lens of its biggest infrastructure project. and bskyb offered 675 euros a share for the rest of scoy deutchland. we'll be speaking to their ..e.o. first in a few minutes welcome to the second hour of "countdown," everybody. i'm anna edwards joined by mark barton and ryan chilcote. we already got confirmation that bskyb is making an offer for sky deutchland. we have a few things coming through from bskyb. they are saying they are going to purchase sky italia and the stake in sky deutchland that it doesn't already own. it is going to be 4.9 billion pounds. there will be a lot of currencies involved in this story. bskyb saying they are placing new ordinary shares, placing 156 million new ordinary shares to part funds the proposed acquisitions. clearly a lot of moving parts in this but we were expecting they were going to make that announcement today. we broke the story on bloomberg a number of months ago this was in the offing. the aim of course he

>> you are right to point to point the combined chiefs meeting in the u.k. last month,, the first time there has been such a meeting since the second world war as a strong demonstration of the growing collaboration between our nations. we are the closest allies in defense. we are looki to broaden and in thecollaboration intelligence field to specific areas of operational aivities. you referred to carrier strike. that is exactly the sort of thing we have been discussing. i had etings with theuty secretary who was here for the naming of the carrier 10 days ago. we had our meetings with frank kendall in the deity and -- in the dod and others. there is a stronong representatn of the department of defense and military here. we have been working on continuing collaborations including science and technology opportunities. >> i also asked whether the royal navy was going to be allowed d to use both of the big deck aircraft carriers it is building. he said th decision is up to the chief of the royal navy who controls his own budget. coming up, the chief of the royal a

the u.k. economy is powering ahead. are going to get the second quarter readings in the next hour. the imf focusing on what is happening within britain. let's talk about it in real terms. let's talk about the biggest infrastructure project in europe. let's go to crossrail where we find caroline hyde. over to you. >> thank you very much indeed. i am pleased to say that i am joined by the chief executive of crossrail. we are talking about of course -- we have got growth in the u.k. and you say this project, the biggest infrastructure project in europe, can add to the economy. how is it adding to growth? >> good morning. this is one of eight new stations that forms crossrail. 120 kilometers. this is a phenomenal program from london. it will bring 10% extra rail capacity when we open. 1.5 million people will be within 40 minutes of those key districts of london. you can break that down in a number of ways. the extra capacity reduces theestion, improves possibility of business in london. there have been just 30 applications

yields are rising in the united kingdom, therefore the u.k. is in sync from the voices coming from carney. yields are rising, however u.s. yields are below u.k. yields. yields -- lower yields are not reflecting the fact that they are probably well moving in 2015 and might even move in the first quarter. bond markets, some say, are completely mispriced. >> thank you very much for that. let's talk about one of our top corporate stories. french mobile giant orange says it cannot pursue a consolidation deal in its home country without elaborating about what that deal had involved. we were waiting for even to approve the -- the eu to approve deal billion euro for vodafone. >> no deal, yes deal -- it is no deal for orange. interesting headline. interesting statement coming from orange. one of the biggest players in the french telecom space had said it cannot pursue an operation that would lead to consolidation. they examined the possibility of participating in an operation but they can't because conditions at that group have not been met. what consol

britain's queen names the u.k.'s biggest ever warship well the future of britain's nuclear defense is remain up for question ahead of scotland's independence referendum. we supply the weapons that are used in the conflicts that none of these people had to flee then we don't let them work and put them in countless when they get their anger within germany over the treatment of refugees after police try a big thing dozens from a disused building. but first washington's a wait and see approach to the crisis in iraq could change the u.s. has already sent more than seven hundred fifty troops to the country and currently advising the iraqi army on how to defeat isis insurgents but it may not be enough america's top army general leaving the door open to the country's increased military involvement the chairman of the joint chiefs joint chiefs of staff martin dempsey says the u.s. could launch an assault on isis militants if national interests require or president obama gives the order currently the u.s. is gathering intelli

still to come in the program it's whiskey not champagne is the u.k. launches a new aircraft carrier the british queen is heading to scotland to christen the u.k.'s biggest ever warship while the future of britain's nuclear missile system remains in question ahead of big independence referendum. but you have a militants making significant advances in iraq saudi arabia has started moving military personnel close to its from syria with the war torn country the report comes after iraqi troops are reported to be withdrawing from the area something baghdad denies. as the. saudi arabia has reportedly sent thirty thousand troops to its border with iraq across that border is a cauldron of sectarian infighting the isis is sunni it's a radical sunni jihadi are well armed and well funded saudi arabia also sunni doesn't want to be officially associated with the isis but it's hardly an innocent bystander many of the isis is most violent frontline fighters are believed to be saudi nationals there widespread reports that wealthy donors in saudi arabia had been funding

ahead tonight britain's queen aims the u.k.'s biggest ever warship for the future britain's nuclear defenses remain up for question at the scott was independence referendum. washington's wait and see approach to the crisis in iraq could change the us already has over seven hundred fifty troops in the country and is currently advising the iraqi army on how to defeat isis insurgents but that might not be enough america's top army general now is leaving the door open these countries increased military involvement may be chairman of the joint chiefs of staff martin dempsey says the u.s. could launch an assault on isis militants if national interests were cry it would require it or indeed if president obama gives the order to currently the u.s. is gathering info intelligence and information while the number of iraqi deaths continues to grow more than two thousand were killed in june alone meantime saudi arabia has reportedly begun amassing its troops along the border with iraq one arab media outlet said iraqi forces are withdrawn fro

clearly there are a range of measures the u.k. government and other international governments a consequence of the activities in and around crimea. >> what kind of damper does it put on sales by u.k. businesses? the fact we don't have a russian delegation this time around? there are u.k. businesses that made money selling to russia, aren't there? >> i think business will be as usual. i'm not sure there will be a huge impact in terms of the u.k. business. fantastic part is the global business is here. 39 countries will be here during the course of this week. that means a great opportunity to bid -- to do business with companies around the world. we are a global leader in aerospace. products many countries want. this is a big week for us. >> this is a sector that is growing faster at the moment. >> the latest we have is 10 u.k. faster than the economy generally. i think that reflect positive global growth. we are seeing demand for air traffic passengers grow. the demand for new aircraft is also growing. boeing and airbus are increasi

and there is more military hardware on show this time in the u.k. where britain's queen elizabeth has unveiled the country's biggest warship at a ceremony in scotland the vessel which is named after the monarch is the first of two aircraft carriers being built at a cost of over six billion pounds expected to be her majesty's last official engagement in scotland before the referendum on the country's independence which will take place in september police border has its birth is taking place in scotland which is why the queen is christening the u.k.'s new super carrier with whisky instead of champagne poured into the u.k.'s defense secretary it's a demonstration of britain at its very best the royal navy has sixteen ships and submarines and two royal marines commando units based in scotland the s.n.p. has promised to maintain all military establishments and scotland in the event if it depended but the problem is that at the moment there's simply no. happen to britain's defense says if scotland were to leave the union the case first see the lord has war

the current u.k. egation to india has been talking about many things and we believe food is something that could lead to final retail. >> you have touched on some big subject there. have osborne and the government in hague. when it comes for doing business in india, listening to some of who has gone outwards from india, what can he deliver in the next six months to a year to make a destination to boost? >> first and foremost, the clear has alreadyas delivered a euphoria of people looking back to india rather than looking away, number one. >> at least they are looking. >> the feel-good factor is back. >> he is a great statesman and he is proved that in his own ability in running his state. i'm sure given time he will prove the same for india. he has a clear vision and a clear mandate. >> is britain on the front foot? as the third-largest investor, switched on a was few years ago. how do indians view the british relationship to trade? >> the britain-india relationship is strong, whether it is built on tr

could land you in a whole lot of bother at least if you're on the search for work in u.k. find out what punishment lies in store for a dodgy job hunters all the info on our website. and it's been more than a century since the idea of wireless energy transmission was first conceived but scientists are doing all they can to put a fresh spark into the idea and make it a reality find out how at r.t. dot com. and also there for you high caliber pictures here of naval drills carried out by russia's fleet in the black sea. and we've got all this so much more waiting for you at r.t. dot com. right from the scene. of first reading. and i think the turks. live live on our reporters live their lives and still live. today and live. britain's queen elizabeth has unveiled the country's biggest warship at a ceremony in scotland the vessel which is named after the monarch is the first of two aircraft carriers being built at a cost of more than six billion pounds is expected to be her majesty's last official engagement in scotland before the referendum on the country's independence in septe

earnings, the u.k.'ports. ♪ "> welcome back to "the pulse live from bloomberg's european headquarters in london. pound land has issued its first earnings report since going public. it is set to benefit as the economy in england improves. is our european business correspondent, caroline hyde. why is pound land doing so well are we all becoming bargain hunters? >> we are. that is what is the most fascinating thing about penland. i go quite crazy in it. flashing santa hats which last for like 48 hours. over christmas, they sold 3 million meters of tinsel. they sell 3 million light bulbs, 4 million bags of sugar. 18 billion cans of coke. quarter of a million garden gnomes. they are across the board. they sell everything from cleaning products to novelty items. one in five of their shoppers is from what they call the a-b earnings category. that is the most affluent, the biggest earners. they are the people going to pound land. sales are currently up 30% last year. profit up 23%. they are expanding. 500 stores

than the u.k. but you know it's we'll see we'll see how this how this develops over the coming months should the fed and the bank of england raise rates in your opinion i think they should raise rates if sorry if if if inflation rises above that's august i don't employment force below that i'll get. right now that isn't the case so zero percent interest rates are the only way only way to go you know is that the u.s. is still doing cause there to be easing in where there. was such a huge such a huge setback. in first quarter growth it would i thought i think for to raise rates now would be. very foolish actually but you know. at the end of the year you know if inflation ticked up to two percent you know if we have two two or three more steady course of the growth and unemployment falling then it will it will certainly be time to can said to good to please because this consider raising rates based on the fed's you know objectives of two percent inflation and you know less than five point five percent

in the u.k. it is a very busy week. looking at growth over three percent year on year for the quarter. bank of england minutes that is where you get the color of where banks are going to go. >> we are watching tesco. changing of the guard. the new chief executive after three and a half years as chief executive. 40 years at the company and is going to be leaving. investors more worried about the sales. theeopolitics clearly background for all of this. toy are meeting tomorrow discuss possibly whether there will be further sanctions on russia. all of that a topic of conversation. will see you again tomorrow. . . >> good morning, everybody. welcome. you are watching "on the move." i am guy johnson. moments away from the start of the european trading session. futures are pointing higher. we are brushing off the geopolitical tensions from ukraine, the middle east. let's talk about all of these stories. now, ryan me chilcote, elliott gotkine, caroline hyde. >> russian business is staring into the abyss this week. the u.k., ger

we will examine the housing market in the u.k. aking live with a former npc member. ♪ >> sarkozy under fire. we are live in paris as the former french president is charged with influence peddling. just short of 17,000. will the dow jones passed that threshold today for the first time ever? and thumbs-up for a telecoms tie up. the eu is set to approve' vodafones bid for ono. welcome to "the pulse," live from bloomberg's european headquarters in london. i am mark

economically meanwhile in the u.k. there's the trillion fund they've crowd funded five million pounds worth of wind projects and solar wind and solar projects where people are putting up small amounts of cash and they get an income six percent on their money on on a wind project or solar projects so here you have a fracking like negative interest rates it takes money out of the economy and destroys the ecology or you could put money into a wonder solar project where people get five or six percent on their money so that was what smith's or are they just what are they but i think one of the problems with that is like we constantly see wind farm applications being turned down because when i saw i was in a cab or earlier and the guys like you had such an ice from an eyesore because there's a wind farm and you're like a vision that's very distressing but notice but why is it less distressing that there's a shale gas rig burning methane on venting me thing and they've got like those pipes were going to look like texas in lanc

and the u.k. ncreasingly the euro zone to basically rate pops up by prince of money that of course is a little he'll make instability in the u.s. g.d.p. is falling sharply sure in the first quarter there are signs it will recover a bit in the second quarter we don't know the figures yet but it was interesting to me max and i'm sure you as well is when the really bad g.d.p. numbers came out in the first quarter the markets loved it because bad news is good news that meant the fed was more likely to take its foot off the off the off the gas in terms of tapering if you like to take time out of ronnie dahl funny money dollars even. more so bad news is good news what a situation we've got in the markets rally when there's bad news because it's more likely the biggest central bank on earth will print more virtual money so that's why stock markets in my view a rate there are a lot of mom and pop investors out there trying to invest their nest eggs trying to get their kids through college who want where of

you know do that the u.k. b.c. barclays and world bank of scotland already have this on the drawing board they're going to charge you to keep money in the bank or you can or you can have a solar project or a wind project where you get a check for five to six percent a year so the average british person so i know i don't want the income may i want the government to steal my money i mean there's a nation of pedophiles but this has gone too far i think is extend to everyone's day to day existence they don't feel comfortable if they're getting raped by the government that's the bottom line it certainly feels that way yes i think that one of the biggest problems we have is a media problem because it's all well and good saying about the children fund i bumped into that by going on twitter and then i met the chap i thought was a brilliant idea and a brilliant project and say we sell a century they're doing some great work however we don't as the average british public don't get to hear about that we get the b.b.c. and i.t.

but just ahead springs queen names the u.k.'s biggest ever warship while the future of britain's nuclear defenses remains a question ahead of scotland's independence referendum. but next washington's wait and see approach to the crisis in iraq could change the u.s. already has over seven hundred fifty troops in the country and is currently advising the iraqi army on how best to defeat isis insurgents but that may not be enough america's top army general knows leaving with door opened his country may be increasing its military involvement chairman of the joint chiefs of staff martin dempsey says the u.s. could launch an assault on isis militants if national interests were required or if president putin get president obama rather gives the thumbs up now currently the u.s. is gathering intelligence while the number of iraqi deaths continues to grow more than two thousand were killed in june alone meantime other developments saudi arabia has reportedly begun amassing its troops on the border with iraq one arab media outlet said iraq

and the u.k. economies and i first asked him how the u.s. and the u.k. economies are doing here's what he had to say. that's existed two thousand and eight slow the u.s. has done a lot a lot better and you know if you look at real g.d.p. since two thousand and eight u.s. is one of the best little economies in the g seven whereas the u.k. is actually one of the worst it's kind of only it's late so. but you know right now u.s. just had a massive setback with g.d.p. last quarter and the u.k. is actually growing quite well but you know i tend to i tend to say that the the signal is the long term trend and that the noise is the short term trend so i tend to say the u.s. at u.s. is probably in about a better position to weather the storm than than the u.k. but you know it's we'll see we'll see how this how this develops over the coming months should the fed and the bank of england raise rates in your opinion i think they should raise rates if interest if sorry if if if inflation rises above that target i don't employment force below that i'll get. right now tha

s have also sued the u.k. government through this court over claims that their communications were monitored as well as i just said in the wake of the edward snowden affair with the public debate still very much taking place over mass government surveillance these fresh and unprecedented legal moves from the internet service providers are unlikely to be the last that was artie's poly boyko and nervous new yorkers are all waiting on governor andrew cuomo who must decide whether to uphold the state wide moratorium on hydro fracking earlier this week new york's highest court ruled that local townships and cities have the right to prohibit drilling within their own boundaries but it's up to the governor to decide on giving. that discretion to them now governor cuomo inherited the fracking ban from his predecessor david paterson when taking office back in two thousand and eleven the moratorium bans fracking which is a controversial way of accessing natural gas and shale rock by pumping water sand and other chemicals

the u.k. prime minister says britain me these emergency laws that force telecommunications companies to hold wreck or words of customers data because back in april the european court of justice scrapped an existing law that already forced companies to do just that on the grounds that it infringed human rights so the british government wants to rush through its own law david cameron says that telecoms firms are just weeks away from deleting customer information ministers say that would have serious consequences for police and counter terror operations sometimes in the dangerous world in which we live we need our security services to listen to someone read the e-mails to identify and disrupt a terrorist plot as prime minister i know as examples we're doing stopped a terrorist attack according to the law mobile phone providers will have to store data on who contacted who under way for twelve months so that means your messages websites you visited and even the places you've seen so you with their r

the u.k. government tries to legalize keeping personal internet. surveillance program would breach of the sea rights and president putin takes up the world cup relay from brazil with the country hosting leaders of. the brics. are you watching international coming to you live from moscow. this is the skyline in eastern ukraine filmed on sunday night and the areas on fire you can see here reportedly there paul where the military and anti government forces have been engaged in a bitter fight this video apparently filmed earlier in the day showing fighters shelling government troops at the airport both sides currently in control over kariya obviously if a national is in lugansk and says the city is bracing itself for an escalation in violence. we witnessed dramatic escalation of the situation here in the city of the gods guarantees continuing to deteriorate is now you can see shalini east continue and we hear that crane in troops are now getting closer to the city center and to government just conf

and the u.k. government tries to legalize keeping personal internet and mobile phone data results of his crying the states the violence program would breach basic previously right. and i welcome you watching r.t. international now this is the skyline in the guns in eastern ukraine that was filmed on sunday night and the areas on fire are reportedly there and they're port where the military and government forces have been engaged in a bitter fight this is a video apparently filmed earlier in the day showing fighters who were at the time control of the airport shelling attacking government troops both sides currently kind control over the strategic area. but a massive military convoy has also reportedly approached lugansk including up to eighty tanks and government forces have been filmed maneuvering their own armor to meet the enemy parties refund is in again he says the city is bracing itself for an escalation in violence. they actually don't need to turn on the siren ambulances are almost the only

breaking news out of the u.k. corps "news of the world" andy coulson has been sentenced to 18 months in prison for conspiring to hack the phones of celebrities and the royals and was a former aide to british prime minister david cameron and should take the major blame of voicemail interceptions tat now defunct tabloid. two men were given suspended sentences. this is the eighthen month or end of the eight-month trial in which others were acquitted on charges. the sentences comes three years to the day after they found thesmses at the center of what was a global scandal triggered by revelations journalists listened to messages of murdered school girl. the other men going to prison had pleaded guilty. a stay in the u.k. once upon a time britain ruled the waves with a navy that had global dominance. those days are now long gone. the u.k. is set to re-establish naval power with a special aircraft carrier. our tom gibson reports. > at 7,000 on thes. h.m.s. queen elizabeth is the u.k.'s largest-ever warship. it's flight d