Vivendi selling their stake in activision blizzard to a team led by the video company steve executive.
S ac capital advisor charged with insider trading.
American prosecutors said they made millions of dollars of illness and profit.
Ubs reaching a settlement for its u.s. mortgage deal.
They agreed to pay $885 billion -- million and japan shaking up years of deflation in a roost of abe-nomics, prices rising the most since 2008. ? welcome to "countdown." i'm mark barton.
Today, big earnings news.
Don't miss our interview with the cfo of air france.
Those earnings will break in just a few minutes.
Philippe calla via will be first.
Then me will get information from b-sky-b right after their numbers come out.
That is also first on bloomberg today.
Plus, second-quarter profit missed and we will be speaking with the chief financial officer, leopold alv ear at 7:30 a.m. bcb is ready to do whatever it takes to -- the ecb is ready to do whatever it takes to preserve the euro.
Believe me, it will be enough.
Ecb president mario draghi one here ago -- when you're ago pledging he will do "whatever it takes." how is it doing one year later?
Let's check in with david tweed.
Do you give it a thumbs up or down?
How did he do?
When you consider what he was trying to do was to and the -- end the redenomination risk, i reckon it is a thumbs-up up.
He did when he was going to do.
He made a speech in london where he was visiting before the olympics, which gives you an idea how far along it was.
That speech seems fairly recent.
If you look and see what happened six years later, it took six weeks for him to get back to the european central bank and work out exactly what they were going to do.
There was a big fight with the bundesbank and they came out with a program where the european central bank said that we go into the secondary market and buy bonds, short maturity bonds, from countries who decided to sign up for the program.
We still don't know the details about how this is all going to work, but if you look and see what has happened to bond markets right across europe, let's call up some of the graphitic and see what's been going on.
I won't be reading off of the numbers, buchanan see from the angle of the lines, the bond yields have been coming down -- but you can see from the angle, angle, they have been coming down from extremely less angle.
The euro is irreversible.
He is right.
In greece, they don't expect them to leave the euro that the stage.
From this point of view, yes, he has been successful.
What sort of bond buying program was also designed to repair financial fragmentation and on that level, maybe he failed.
That is what mario draghi said, actually.
One of the main aims of the program was to bring the bond yields down because it would allow those bond yields, lower borrowing costs, to go out into the affected countries like portugal, like spain.
The monetary transmission mechanism of the european central bank has not been fixed to that day.
We are seeing borrowing costs in spain still rising.
If you look at overall loans in the private sector, june had the biggest contraction on record.
No, it's not working, and this is the area of the ecb is trying to focus on what european leaders because you have programs like the germans are trying to get money into spain and greece by the development bank.
What is needed now is this monetary transmission mechanism to be fixed and europe needs growth.
David tweed live in berlin.
We have some breaking news from the french media company, vivendi.
They are selling their stake in via game company activision.
Talk us through the headlines.
They are selling the $ 8.17 stake.
-- billion stake.
They're going to start selling that stake to the emirates telecommunication company so that's another step.
The focus is on content, isn't it?
They are still going to hold the 12% stake in activision.
They still have a stake in universal music as well.
They have canal plus, too.
They want to keep universal music and they reportedly rejected a $ 8.5 billion offer for that.
The deal is expected to go through this year.
We will look out for vivendi shares once they start trading a little later.
Luxury industry rebounding from the week start.
Lvmh and gucci reporting accelerated stills growth.
With lvmh's recent purchase of the cashmere company, they are both focusing on the premium side of luxury.
Here with more is our european business correspondent caroline hyde with the flavor of yesterday's numbers.
Big improvements from the first quarter.
That's the key take away, isn't it?
The first quarter really was a week start.
The key brands, gucci and lvmh, they have the slowest growth for the first quarter in three years with sales up in excess of 9%. we know lvmh, the biggest luxury company in the world.
We know don paren yon, labels such as believe vuitton and others.
-- we know dom perignon.
Less of the logos.
Make it more exclusive, increase the prices, reduce the number of retail outlets.
Make it more of an aspirational goods people want to buy into.
Or again excels up -- organic sales up 9%. also in the hong kong airport retail, that profit was just below analyst estimates that there is a real air of confidence coming from lvmh.
They are seeing a recovery in the biggest brand, louis vuitton.
Fashion leather goods.
Click there was a decline in the first quarter.
Like the heavy slowest sales in three years.
They are looking to make it more exclusive.
Wine and spirits, moet and hennessy, missing.
Into the second half, they are entering with confidence.
Yes, strong growth.
Up 9.4% helping from the sporting-goods maker also.
But within, isn't it bottega veneta.
Of 17%. y hassell cell up 14% as well.
-- ysl up 14% as well.
Week improvement but it did miss forecasts.
Regionally, it's about asia.
Therefore the chinese demand is not kicking through quite in the way that many analysts and investors want to see.
The mature markets are western europe and japan that are outperforming up the moment.
Again, an air of confidence.
It is you, mark, men that are helping.
I have been on a luxury spree.
Maybe not with gucci.
But the men's lines have had outstanding performance with caring -- kering.
With growth in mail, demand is outstripping that a female.
-- with grtowth in the male lines.
Inflation for june rising the most since 2008. angie lau was standing by in hong kong with the details.
Good morning, angie.
The price of the japanese basket of goods has risen the most in four and a half years.
We have not seen numbers at this level since 2000 eight.
This is the first time we are seeing it after shinzo abe but promised to reach inflation.
June cpi features come in beating estimates.
Japanese companies, as we know, are starting to tackle on those higher costs to consumers.
In the past month, rises for things from vegetable oil, salmon, wind, it has all gone up because of the weaker yen and higher fuel costs.
Many say it is too early to tell whether deflation is over, this is something that japanese consumers have not seen in a while.
The problem is that while prices rise, wages remain the same in japan and they are having to pay more.
Look at that.
Jam, mayonnaise, and wind up words of 9%. those left behind in this abe- nomics policy?
They are seeing the purchasing power of their yen dipping and they are turning to a life of crime.
We will have more on that story in this hour.
Angie, see you then.
Coming up, one year ago since draghi pledged to save the euro.
We will get more of an opinion when "countdown" returns.
? time for today's company news.
Samsung missing estimates as sales growth slows in the high- end smartphone market.
They are also suffering for stalling demand from television.
G.m. outselling toyota for the first time in six corridors taking the number one spot in the car market -- in the six corridors.
Japanese sales fell 11% in the first half of the year.
Vw was the number three carmaker.
A surprise loss for amazon.
The world's largest online retailer pumping money into warehouses and digital content this corridor.
Sales growth at the expense of profit.
One year ago today, ecb president mario draghi made a game changing statement.
You promised to do whatever it takes to save the euro.
How has the currency fared since been?
Let's bring in the em ea research director for forex.com . it was not a number i looked up until a minute you got on set and the euro is up 8% since draghi one year ago pledged to do whatever it takes to save the euro.
It was a successful pledge, wasn't it?
To one extent.
It certainly was.
It's not just the currency you need to look at.
Bond yields in spain and italy are very low.
The 10-year bond yield is well below 5%, a very stable level as they continue to try to raise money at reasonable rates.
Regarding the currency, draghi has been incredibly clever with what he's done.
They don't like the euro falling too low.
$1.20 level, i can believe it was one year ago, and it helps to prop it up.
Back in february when it got to $1.37, he was able to talk it down.
Now it is a nice happy medium around the $1 .32. click they are calling that the equilibrium.
The credit channels are not working.
He wanted to help the financial fragmentation, as he called it.
He has not been successful.
Interesting enough we had some lending data out and consumer lending in the depths of the depression particularly in the periphery and that has been a big worry.
That's not the case and that is a structural issue.
We get into a debt problem in areas like spain.
We know this from last month ecb and we have another meeting.
What else can draghi add to the rhetoric or some more concrete measures?
By in march, he will oink to the pickup in -- by and large, he will point to the pickup in data.
I actually think it could be a quite the message for draghi.
He has managed to do an awful lot without spending a penny or increasing the balance sheet of the ecb.
The balance sheet continues to shrink.
We don't think you will say anything and next weeks meeting to change it and it will will help prop up the euro.
Talk to me about the yen and japan.
Cpi, excluding food, rose the most since 2008 in june.
Is it starting to shake off 15 years of deflation?
Is this evidence of that?
We are in reflation territory.
Abe-nomics seems to be working but we are far from the inflation target.
Much stronger cpi data for a country like japan, but we still solve the yen weakening.
-- we still see the yen weakening.
We need an awful lot of stimulus to get to that 2% target.
The yen has been in a very tight range, roughly around 991 -100. what will happen?
The market knows what china is doing.
They will lay that out.
Abe just has had a good election and it will all be about the u.s.. nonfarm payrolls will be pivotal in the u.s. roughly 190,000. if they can stay around that level, it is positive and it keeps a tapering from ending.
The fed meats and there will be no official news.
No press conference, so for us it's not as big of a meeting.
After the testimony we got from burning queue to congress last week, he has really laid the groundwork.
Yes, there will be tapering, but it does not mean we are doing tightening.
He will stick to the line.
France is breaking the terminal.
Air france expects to deliver an operating profit for this year.
Higher passenger numbers, lower fe uel expenditures.
Operating profit was 79 million euros last quarter comparing with a loss one year earlier.
It is below estimates and analysts were anticipating a profit of 89 million euros.
Air france season improvement in the second half "in line with that of the first off" and that doesn't imply a profit -- that does imply a profit for the full year.
The company before now has not made any predictions on whether it would be profitable this year.
They are paring costs, cutting that.
They have been saying external variables are making predictions too uncertain and that seems to have changed.
That is a big change from air france today.
I will be speaking to the cfo and about 11 minutes time.
Stay tuned for that.
Stay tuned for more with kathleen brooks, research director at forex.com.
We will talk about sterling.
Good news is bad news for the pound, she says.
? welcome back to "countdown." cap lane brooks is with us from forex.com.
The good news was bad news -- kathleen brooks is with us.
It elegance the dollar and the euro.
It was a bit of buy the rumor and sell the fact.
It had been rallying on the rumor and then selloff quite sharply.
Yes, it was good news.
The angle they look at is that our economy is still over 3% weaker than it was the previous recession.
Italy has done worse than us in the g7. yes, experts are picking up and that's fantastic, but now there is a head when in china and all of these places we wanted to send our exports to.
We need more monetary policy and i think that is the focus.
We're looking forward to what's going on.
The first week of august, bank of england meeting and of course inflation.
Click the inflation report is more important, isn't it?
We will hear more about the bank of england's research and forward guidance.
Obviously, mark carney's first meeting as governor, we sold off on the statement and then we bought the minutes.
The statement, we're still getting used to it to the markets will react to anything, but forward guidance it is really a sell signal in the forex market set the stage.
The pound and the euro have been selling off on the back of any forward guidance announcement.
Yes, i agree with the inflation goal, but the first seven days of august will be interesting.
What do you think we could get out of the bank of england?
Could we get another statement like we did?
Is this the first of a monthly line of statements which would be a different direction for the bank of england?
It would be are just to throw one in the first meeting and then delete it that way -- leave it that way especially when the markets are getting used to better communication with the ecb and the federal reserve.
The ecb is already lagging behind.
Because they have the inflation report one week after, they may wait for that.
Yes, they are debating forward guidance, but there is a huge amount of expectation that they will actually adopt it.
If they don't, we think it will be very pound positive.
Oversold, you are saying, in the short-term.
. explain the technicals for us.
It is a very big support level and the moving averages under there.
A lot of people are looking at those levels just below there.
Just below it is really carrying to the upside so we could really trade in a tight range as we move into the bank of england event.
We did a big survey today on bloomberg talking about when and if the fed will start to taper.
The question we were posing was what developed word currencies are the most vulnerable to fed tapering?
It seems as if according to the analysts that the euro, the pound, and frank are most vulnerable-- the franc.
Those that will benefit the new region -- norwegian krone and the new zealand currencies.
Is that correct?
They have been selling very sharply, reticular the against the dollar and tapering talk has really taken hold since may.
Any kind of change in expectations of tapering will take place in the could cause a currency debate.
Aussie looks like it is facing about 90 anyway.
The future direction of that will be dependent.
It is still a little bit too strong.
Will they wanted to go lower from here?
Are they happy with the level around 90? their view is that it is still too strong.
We have an election in australia.
The government is putting pressure to try to weaken the currency.
Second quarter cpi is a key release and it really tell us anything so we have to wait for the meeting from the rba.
They are this month and emitting's -- and the meeting minutes says they're waiting to see the impact impact of previous cuts.
Kathleen brooks, emea research director from forex.com.
Missing an operating profit.
We will get inside from the cfo of europe's biggest airline here on bloomberg.
Philippe cohen is with us next.
-- philippe calavia.
? i'm mark barton in london and these are the headlines.
Sac is being charged with insider trading.
U.s. prosecutors say the 14 billion dollar fund engaged in an unprecedented scheme involving more than 20 companies and million dollars of illicit process -- it was profit.
This is not just names and numbers.
More broadly, it is a firm with zero tolerance for low returns but seemingly tremendous tolerance for questionable conduct.
Sac became, over time, a veritable magnet for market cheaters.
Sac said they never encouraged, promoted, were tolerated insider trading.
One year ago, the brazilian businessman was ranked as the world's eighth richest man.
Now he is worth around $200 million after completing a debt restructuring deal.
His oil company missed out targets prompting a selloff.
The number of people killed in the train wreck in northwest spain has risen to 80. security camera footage has been released showing the moment it slid off the rails and collided with a concrete wall.
The prime minister visited the scene yesterday and said there'll be three days of national mourning.
Hello and welcome to "countdown." i am mark barton.
The second-biggest carmaker has reported an unexpected again in first-half profits, reductions in labor costs more than offsetting slumping sales.
It is set to retract for the sixth straight years.
Earnings before taxes and one- time items, upgrading margin, climbed by 15% to 583 million euro up from 508 million euro and beat the average that seven analyst estimates that were compiled by bloomberg.
First-half revenue dropped by 0.9%. renault reaching a deal with unions to cut its french workforce and freezing wages in exchange for not closing any plants in the country.
For three years -- we will be speaking to this man at 8:40 a.m., carlostavares, -- carlos tavares, coo of renault.
They missed on operating profit but slightly beat on revenue.
Joining us now with more is philippe calavia.
Thank you for joining us today.
A big news is that you are seeing an encouragement in the second half in line with that of the first and that implies a profit for the full year.
Is that correct?
You are saying that you will be profitable for the full year?
Yes, that is a correct interpretation of our guidance.
That's a big statement.
Up until now, you have been unable to provide a forecast.
Why are you suddenly able to achieve that?
I think we are achieving pretty good performance during the first half.
We improved our operating compared to last year by more than 200 million euros.
Now we have a bit more visibility even if we must remain very modest in terms of visibility in our business.
We have a very complex and challenging economic prospect and there are up and downs.
We think now we are on the correct track and that we should improve.
Our second-half performance will have the same order of magnitude in terms of improvements.
Is it possible to be more specific on what kind of profit you might achieve for the full- year year?
Or is it just too early?
It is too rarely given all of the uncertainties i just mentioned.
The economic environment is putting certain pressures on our business.
Above all, the uncertainty on oil prices.
Let's talk about your transform 2015 program.
Can you tell us how much of the 1.5 billion euros of savings you have actually achieved so far you go-- so far?
As you mentioned, this is a transform 2015 plan and this is the main driver of the improvement in our operating performance.
Over the first half of this year, we reduced unit costs by more than 2% and this is visible in the figures.
Acceleration in the reduction will run its course.
2% in the first quarter, more than 2.7% in the second quarter and that is obviously a driver of the improvement.
Today, we can say a measured part of all of the initiatives we have committed to in the beginning of last year , we have performed more than 50% of our financial targets in terms of reductions in costs.
There are certain sectors where the situation is more challenging than expected due to the context, so we have decided what was already the plan in the agreements we had with our laborers, more particularly in france, we have decided to speak to our unions in the fall to finalize this transform 2015 plan to adopt further measures to face in situations . maybe the operations of the group in france and our cooperation as well both in france and in the netherlands.
Can you talk about the new chief executive?
He took over just a few weeks ago, on july 1. what's it like working with him?
[laughter] that's a personal question for me.
I think he was very successful in the negotiations with the unions for air france.
We refer just -- we refurbished all of the categories like insurance.
We were very successful in implementing these negotiations for these unions.
Now he is in charge of the whole group.
I think he is someone who is very close to the ground, very attentive to the commercial aspects of the business.
If i may, i would remind you that transform 2015 is a major part of the program to cut costs, but it is also a lot of commercial initiatives to reposition the brand and the product for air france and klm and initiatives in terms of pricing.
Click philippe, very quickly, have you made a strategic decision on air italian?
It is too early to say there is a definitive strategic decision to be taken.
The italian company, the italian airline, it has produced recently a new business plan for the next three years.
By the end of the year, we would have to discuss with the management to see are we in the future of this airline.
For the moment, it is a very challenging situation in italy due to poor economic growth.
It's not easy for them.
We back them up and we made it our duty of our airline.
And are you close to selling city jet?
In a word, yes.
Yes, we are discussing it.
It is our intention to sell them , but we are still in the discussions.
They are ongoing.
Click philippe, thank you very much for joining us.
Philippe calavia, air france-klm cfo.
Prices are going up in japan and so is crime in an unlikely age group.
Details after the break.
? time for today's company news.
Glaxosmithkline has appointed appointed a new head of the chinese units after reports that he used sexual favors to bribe doctors in the area.
Four executives were detained last month.
Starbucks profit timing beating analyst expectations and the push into food is paying off.
The largest coffee shop operator initiating in a range of menu items.
They are developing a partnership with dan and to sell greek yogurt and cafes.
-- partnership with dannon.
Second-quarter sales down 3% for lafarge.
They have reduced their market forecast as well.
Welcome back to "countdown." i'm mark barton.
Just after 6:00 40 3 a.m. in london.
-- 6:43 a.m. crimes by japanese pensioners have tripled in the last decade.
Angie lau, what's going on?
If you are on a fixed income, the purchasing power of the yen gets weaker and weaker.
It's good if you are an exporter.
It's not good if you are over 65. crimes committed by the japanese elderly, as you said, have doubled in the past decade.
Shoplifters are now more likely to be elderly than juveniles.
Abe-nomics is having an adverse effect on the elderly as the prime minister tries to cut welfare to curb the national debt of 245% of gdp.
Seniors are turning to a life of crime and they don't care if they get caught.
48,000 seniors were arrested and shoplifting accounted for 59% of those crimes committed by those 65 or older.
Even though total crime dropped 17% the last decade, crime amongst seniors has doubled.
What are they swiping?
Everything from bento boxes to bread, rice balls, sweets, even sashimi.
It is a common trend here, isn't it?
They are stealing food.
As a is pushing back the h 265 and raise sales tax by 20% and stoke inflation, and looks like the fate of japan's seniors is dire for a country trying to raise itself out of its last decade.
Angie, thanks a lot.
An amazing story.
Barcelona just announcing a new coach.
Big news in europe.
The name surprising lots of people.
He's had his fair share of success in argentina.
He's new to europe.
There is a new man at i in munich and a new man at chelsea.
-- at bayern munich.
We are joined by ben littleton.
I've never heard of him.
I'm sure many have not.
A big surprise.
No one was expecting barcelona to change their coach.
They had to make a very quick decision.
He found out about his cancer and speculation mounted for one week.
Now this week, martino is appointed.
He has been appointed.
They were born in the same place.
And his latest success is the club that his father supported and that his father had his favorite player.
He managed them as well.
There is something named after him?
He is an interesting figure in all of this because he was considered to be the coach as well as his mentor and also martinez but he is a less radical version.
These are the kinds about why one might be concerned -- these are the cons.
He played for barcelona and the other contender, a former barcelona legend.
This is a knock for him.
You cannot come into a club like arsenal owner without understanding the -- a club like barcelona without understanding the ethos.
At other clubs, the pressure will rise.
There are spanish champions, but the big target is always the champions league and they have to compete with bayern and chelsea.
They were afraid to take a punt on coaches.
His resume was pretty spotty.
The dutch national team as well.
He had never coached at a senior club, only barcelona b. his first senior coaching job was in the air division.
They recognize potential and they see what could work with their players.
This is fascinating.
We are looking at argentine coaches in europe.
Misses and hits.
Misses, they are risky.
Some of these names may not be familiar but they are big names in argentina.
Cesar luis menotti , he coached argentina to the world cup.
In 1983, he was appointed by barcelona.
The best player at the time and the comparisons and the parallels between menotti and merino have been made.
History will repeat itself.
Let's look at the recent crop of argentines that are doing well.
Simeone is doing well.
And this fellow that the bottom as well.
Pochettino did well ringing through young players.
He was promoted to southhampton.
He has taken it and improved it.
Argentines are now being more welcomed into europe and this is potentially a new phase.
We will see many more south americans coming to big coaching jobs at digg clubs.
-- at bigs clubs.
Will he be successful?
I think so.
Make jagr is 70 years old today.
Some say he has gotten better with age, -- mick jagger is 70 today.
? welcome back to "countdown." the eighth richest man has nearly lost in all.
The brazilian businessman had a net worth of $34 billion.
He had his biggest personal gain of $7.7 billion at the selling a stake.
You could say that he broke even.
He lost six $.8 billion after a lower valuation.
After the abu dhabi sovereign wealth fund converted a $2 billion investment in his company, today he is only worth just two hundred million dollars.
To give you an idea of how much he lost, you could spend $1 million a day for the next 91 years and still not get through it all.
That's how much money he lost.
One hour away from the start of today's european equities session.
Time to look at today's newspaper picks.
We have caroline hyde with us and bloomberg sports contributor ben littleton and kathleen brooks from forex.com.
What a year.
One year from the olympics.
What did the olympic old heroes do next?
They want, basically, specifically andy murray.
Look at what he's done since winning wimbledon.
I'm sorry, after winning the olympics.
He has won wimbledon and he's turned us all into a nation of winners.
From the ashes, winning the tour de france.
It's been great to be in the uk for the past year.
We usually embrace glorious failure.
I don't think we will ever be too confident.
We always expect to fail.
Except for the english football team.
That will always disappoint.
You don't necessarily sleep so well during the full moon.
Essentially, a relic from evolutionary times when there was a link between our body clock and the lunar body clock.
The reason why , interestingly, one of the hypotheses is why if there is a full moon, it is lighter, and more risk for editors.
In case you get eaten . eaten alive.
That explains why i have slept so poorly.
Almost 70 today.
A great article in "the gardian" who first saw the rolling stones in 1962. at 70, he is still at his best.
No one should be negative about older performers.
I can in 1960's, everyone aspired to be muddy waters, ned belli.
Now there are still some critics of mick jagger and indeed the rolling stones.
If you are still able to please 100,000 people and still dance, you should still be dancing.
I saw iggy pop and he must be in his 60's. he still has such charisma on stage.
David bowie is in his 60's. think of paul mccartney.
I was going to do a story about how women are in printed to be attracted to men who are funny but i decided not to.
I saw this cartoon in "the telegraph" and i loved it so much.
Go in close on this.
Chancellor george osborne cradling 0.6% change and you will see that david cameron the prime minister and his wife's blue dress.
It is taking the mickey, isn't it?
What happened with the duke and duchess of cambridge earlier this week with their new baby.
It's something, isn't it?
It is two quarters of growth in quite a long time.
We definitely avoided that triple dip.
A tiny miracle.
"countdown" continues in the next hour and british guy results next.
? . . . sold its stake to activism -- activision.
Capitalist is -- charged with insider trading.
U.s. prosecutors say the hedge funds made millions of dollars of profit.
Ubs reaches a settlement for the -- for its mortgage deal.
They agreed to pay $889 million to fannie mae and the dream act -- freddie mac.
These are the first set of results under the new chief executive.
We will be speaking to him live here on bloomberg.
Welcome to "countdown." second-quarter profits missed earlier this week.
We will be speaking with the cfo biggest lender.
We will hear from leopold in just under a half hours time.
Do not miss that.
We are getting earnings from europe's third biggest oil producer.
Adjusted net income has actually the investment.
-- bijan estimates.
The figure is down from last year's 2.9 billion.
Above the estimate, which analysts had estimated before the release.
It accounts for about a 3.3% profit.
A failure to make up for lower prices.
2.9 billion barrels of oil after they resumed output.
The effect of high volumes has been upset.
It is about five percent lower than a year earlier as economic stagnation has curbed demand.
That is the latest.
The profitability is down.
What about anglo america, the world's biggest producer of platinum?
John is here.
Class underlying operating profits, $3.2 billion the first half, down 15%. a lot of concern over china, the slowdown there.
Looking at the short term, they say economic out look is uncertain.
More science in the major advanced economy.
The first half adjusted earnings per share, 98. the estimate was nine cents.
A bit of improvement.
The reality is uncertain.
What they are looking at is strategic review.
Carol was played -- plagued by problems.
One project call -- caused a lot of problems for her.
The big one for them is their exposure to south africa.
A tough one is the fact they are the largest private-sector employer in the country.
Any efforts will be politically sensitive.
The earnings continue.
We are getting earnings from the biggest pay television provider here in the uk to provide more details as caroline hyde.
I see an increase.
Put it in context.
It has written -- ridden eight percent compared to.
Sales are in line with estimates.
For many analysts like barclays, they return shares.
500 million pounds in a share buyback is how much will be given to investors.
This is a company that has seen competition from every front.
It prides itself on forecasts, premium movies, half a billion households find the -- signing up for that.
Also, films , they have now tv to try to combat, and netflix there they are trying to roll up the competition.
They have had a fivefold increase in demand download.
The future will be how much they lose in terms of ep.
Joining us from the london stock exchange, good morning.
Thank you for joining us today.
Nice to see you.
You have been on sales and profit.
Any bad news in their?
It has been a very strong year, that comes on the back of strong demand for our products.
3.3 million products.
That has turned into very good financial results profits.
Shares up 18%, and cash flow is very strong.
We have got a really strong year ahead.
Some of the areas of our business, customers use of on- demand, they are really strong trends.
We will push into those and get better on screen and continue to prove -- improve the competitive advantage in broadband.
We are excited about the year ahead.
Average revenue per user, 577 pounds there that is up by 29 pounds year on year.
Can you keep raising that?
I think we can.
The main driver is the increased demand for our products.
More importantly, the number of products our customers take from this.
We have got a very strong basic tv customers.
One third of them, broadband.
Two thirds of our head room to push into to try to sell more broadband.
We are cheaper than competitors and we offer a good, quality service.
Our prices are often up to half the price of a regular price for investors.
There is a lot of head room.
Bt sport launches in a few days.
Is it taking customers from you are not?
Today's results show, in a time where we did see a lot of noise from competitors, our broadband growth was stronger and we see -- we saw some of the strongest growth ever.
We had the first couple of tests shaping up to be an absolutely wonderful summer of sports in the sky.
We've got a lot of plans.
The areas of growth in our business, mobile, getting better on screen, that is what we will focus on.
Today's results show we are very well placed against an always competitive set.
How do you hold on to customers when you are being threatened from both sides?
From the cable operators, from liberty global, which has recently taken over virgin media?
Does this prove the landscape is changing?
The market itself is growing.
In the uk, only 55% pay anything for their tv.
There is a lot of head room for the whole market growth.
Secondly, we keep doing what we have done well.
We keep getting better for customers.
We give them great service and a good value product at a price they can afford.
Keep getting better on screen.
As we see consumption trends shift, people want to take their content with them on the go, and then we follow those trends.
That makes our existing customers very loyal.
Our rates of turn is one of the lowest in any business.
We just focus on what we do.
Given the loyalty of our customers, they love consuming the product.
We continue to believe there are a lot of good prospects ahead of us.
Talking of trends, a number of telecom companies are moving more towards this network, i'm talking about vodafone.
Is this the future for you?
Will you have to forge a deal with 21st century fox?
Is that the future for this?
The future is the skies.
There is a lot of head room.
20th century fox has some views , but that is their view.
What we are focused on and what the board and the management team is focused on is the head room ahead of us in the uk.
This is a growth business.
We are posting seven percent growth at the top line and 18% growth at the bottom line in earnings.
So, the process -- process we have got here, growing the business, are very strong.
Thank you for joining us.
What ever it takes speech . how is your doing?
Our next guest will look at the toll.
She says political drama in the region.
? time for today's company news.
An unexpected gain in profit.
France's second biggest carmaker says reductions in labor cost of said car sales in europe.
They will speak to the chief operator on the move.
Taking the number once bought in the market after toyotas japanese sales fell 11% in the first half of the year.
The number three carmaker.
Plus, a surprise loss for amazon.
It pumped money into warehouses and digital content this quarter.
The net loss, $7 million.
I am mark barton.
The ecb is ready to do whatever it takes to preserve the euro.
Believe me, it will be enough.
But that was ecb president mario draghi.
He arose from his infamous whatever it takes speech.
Our next guest discusses the picture today.
She says political drama has taken its toll but there is a light at the end of the tunnel.
A year ago today, i cannot believe it.
A lot happened.
He did achieve one of his aims, which was reducing borrowing costs within the eurozone.
You have to say he failed in achieving his name -- name of financial fragmentation -- aim of financial fragmentation.
If you go through the prices that encompassed europe, we saw spanish yields, telling yields, pressing higher.
Ongoing concerns about whether the euro would survive.
A year later, we see europe come down substantially.
Essentially, people viewing this existential crisis as having been over now.
We still face severe problems on the economics.
But on the economic side, the data, as evidenced by the number that came out of the eurozone earlier this week, is showing signs of life.
We are probably seeing the euro economy clean out a recession.
Six quarters of negative growth.
The second quarter this year looks likely to be positive or it certainly , the surveys are pointing in the right direction.
It is whining to a slow recovery.
A recovery nonetheless broken, as evidenced by numbers . how did you fix it?
I think the ecb still has a role in terms of making sure interest rates and market straight do not rise.
That is why we have had forward guidance.
They can possibly do some more.
It wouldn't -- it would be interesting to see if they did some for a lending type the -- seen.
The ecb says there is a limit to what they can do in this respect, that there are issues in the banking sector that need to be resolved in order to be sure banks really pass on liquidity, which is therefore ecb.
Forward guidance, rates will stay low for an extended time.
Do you now link it to anything like the fed has done?
Like the bank of england might do?
Could they start to link it to various measures, or not?
It is still very early.
We know the european central bank is investigating all options.
A lot depends, as it does on -- in the u.s. and the uk, on data.
There is any number of options.
Linking to the unemployment rate, as the fed has done, is ready much a nonstarter.
You have got such differing rates of unemployment, from spain to germany.
If it looks likely banks need longer term liquidity, you have another lt ro, which has a fixed rate, and that way you indicate they stay there for a particular time.
So far, mario draghi has been reluctant to identify the time.
They may identify the time in which rates will stay low.
Portugal and italy, we have had some.
What worries you the most?
What could unsettle the calm draghi promoted and started of a year ago?
The interesting thing is with the exception of germany, which is a very important election, we do not have elections on the horizon aired we have a role government looking vulnerable.
So far, we have seen a little more political stability than we would have expected, for example in greece.
We had a crisis.
Obviously, a few weeks ago.
But greece has pulled through.
The concern still relates to greece and whether they can continue to hold political will together and push ahead.
In italy, an interesting week next week.
Berlusconi's repeal results will go through.
The result there are very fragile.
The problem for italy is there are important decisions that need to be taken.
Back to you in a second.
The biggest increase in clock for years.
Sarah returns from standard chartered bank.
? welcome back.
From luxury close to watches.
Brands like rolex are known for their ability to hold their value and make a return on your investment.
It may be different if you end up eyeing a fake.
Bloomberg spoke with a watch dealer for some insider tips on how to spot a fake rolex.
My name is david.
I have been dealing in watch pieces since 19 75. your 10 pound copy from hong kong.
Then there is a 50 pound copy that is better.
The ones that worry us are the 500 pound.
That is the one you need to take to a watchmaker, where you have to take it back off and see the movement inside before you can safely say that watch is a take.
The secondhand , you see it along.
If you see a rolex cross movement.
99% of the time that will be a fake.
It will tend to be a lot lighter than a real rolex.
You look at a rolex winder and it is a work of art.
The cyclops lens magnifies with the rolex.
It is just the same size.
If you buy from somebody -- something of a polity, by someone with a reputation.
If it is too good to be true -- true, it is not true.
Let's talk about japan.
Consumer prices rising the most since 2008. is this the first step on the road to achieving the two percent target in the first couple of years?
It is a step in the right direction.
It gives real encouragement japan is finally waking out of this very long time of the relation.
Qualities introduced by the central bank and the government are starting to gain traction.
It is very current -- encouraging.
One nation whose policies are gaining traction in the opsin way is china.
It has cut its manufacturing capacity.
Has reshaped the economy.
It shows the economy is serious and he is serious in his efforts to restructure the economy.
It shows he is willing to tolerate the necessary pain.
Our global markets willing to?
Some investors are still very cautious about china, still concerned.
We hear people expecting concerns about the extent of overcapacity, fear about loans, potentially, and real worries there is a seven percent, it may not be the floor for growth.
Perhaps less concerned, although we recognize china is going through a structural slowdown.
The double-digit growth rates we saw a few years ago will not be repeated.
What has an interesting recently is while there is a clear commitment to structural reform and focusing on the medium-term, what is needed to have sustainable growth over that time, we have had signs they are prepared to step in if necessary, just to make sure there is enough liquidity in the system and that there are some stimulus to growth.
The g 20 recently made the right noises when it came to communicating policy to ensure we do not get huge sleights of funds from the country.
Growth over that time, we have had signs they are prepared to step in if necessary, just to make sure there is enough liquidity in the system and that there are someyou can pinpoint the emerging market when you talk about that.
Has the flow of funds from emerging markets east?
Are they able to stop the flow, especially as the fed is entering this tapering process?
We track these flows on a frequent basis.
Our latest report growth over that time, we have had signs shows an outflow of funds from emerging outflow of funds.
It is a change from the treeview suite.
The outflow from bonds is less than the previous week.
We are not at stabilization.
The pace of outflow has slowed in the past week.
The flipside is we are still seeing substantial flows into equities and bonds funds.
Now, let's see what comes up next.
The fed of course announces the latest decision.
I think next week, it will be particularly important.
Gdp, everybody recognizes the second quarter has been week.
Payrolls we will -- got a leave it there.
They give for joining us.
? i am mark barton.
The headline run by stephen cohen is being charged.
It engaged in an unprecedented scheme which involved more than 20 companies and millions of dollars of her profits.
Today's indictment is not just a narrative of names and numbers.
It is an account of a firm , with zero tolerance for lower returns, but seemingly tremendous tolerance for conduct.
As a sea became, over time, a veritable magnet for achievers.
In a statement, it said it never encouraged, remote it, or tolerated insider trading.
One year ago it was ranked as the world's eight -- eighth richest man.
His fortune disappeared after his oil company missed output targets.
The number of people killed in the train crash in spain has risen to 80. the prime minister visited the scene yesterday and declared three days of national mourning.
Welcome to "countdown.
Laney -- the latest earnings missed estimates on profits yesterday.
Last year, spain's fourth biggest lender pushed the government to seek a bailout for its entire banking system.
Joining us now on the phone from madrid, mr.
Thank you for joining us today.
Profits was up on the second quarter.
Does that mean you are on track to reach your target by 2015? yes.
We are still on track.
Profit before taxes went up in the quarter.
What is also important is that we have bottomed out the net interest income, which has reached an increase of five percent in the quarter, which is a significant change of the trend.
Do you think that change in trend is sustainable?
We do believe for the second half of the year, it should be higher than the first half.
This is mostly driven because of reduction in deposits.
As you will know, today is the one-year anniversary since mario draghi pledged to do whatever it takes to save the euro.
One mission of his was to fix the financial transition mechanism.
If you look at the numbers from spain, he has not achieved -- achieved that.
The cost to smaller and medium- sized enterprises is still high compared to countries -- can you paint a picture of what it is like to lend money right now to smaller and medium-sized businesses?
How difficult it to -- is it to lend?
What sort of companies are you lending to?
Most of the lending we did last year, over 85% last year and more than that this year, this is the part of the economy that has been more active today.
We are focused on it.
The biggest part are those exposed to the x board -- experts, who are beginning to ask for more lending and leverage in order to commit with their commitment -- investment expectations.
It does seem the companies are still struggling to obtain financing.
Can banks charge less for loans to sme echoes -- sme's? the average lending is around four percent.
I am not sure that is extremely high given the circumstances.
Do you think it is too soon to talk about a recovery in the ranking industry to spank, particularly with the economy as it is, although we had more encouraging economic data on the unemployment front.
With unemployment still at 26 .3%, is it still too soon to talk about a recovery in the banking sector?
We are starting to see the first signs of recovery.
Spain, it will take time.
We have seen export size increasing over investments.
The next step would be on the internal demand of consumption.
We will not see until 2014. with all these and the reduction, what we have seen is financials are starting to regain profits.
Most of the effort that had to take place took place last year.
I do think the banks right now are in a good track.
I think i am right in saying it was 13.36% in the last time.
Is it close to peaking?
The mpl's overall have gone down by 500 million euros in the first half of the year.
The issue of the ratio is that total loans have gone down faster.
Npo's are actually stable.
They actually went down from 19.8 billion euros to 19 .3 billion euros.
How long will you continue to shrink your balance sheet?
We have a compromise to reduce our network, our branch network, by 1500 mansions.
We have already accomplished to close 666 branches.
We are willing to finish it by the first quarter of 2004 -- 13. we have to deliver some nonstrategic assets, especially investments in unquoted companies.
We have already started to do so by selling our state, which we did a few weeks ago.
We are on track and should be ongoing for the coming quarters.
How is the reparation of your relationships with customers who lost money buying into the ipo?
Some of them but toxic rod x. how is the restoration of that relationship progressing?
That is one of the biggest concerns we have.
We are working very hard on it.
One of the signs we can see of how that is improving.
It is under the volumes of the banks, quite stable since the fourth quarter 2012. we are doing reasonably well.
Thank you for joining us.
Good to chat with you.
The cfo of bank yet, which released results showing improvement on first.
Just a now romanesque yesterday.
The world has a new best restaurant in spain.
Choco grilled sardines sheiks, siberian suckling pig.
A sponge cake made of plankton.
We phoned for a reservation yesterday and it is looked through june of next year.
Richard is here.
What is the restaurant called and why could we not get a reservation.
Excuse my pronunciation.
Better than mine.
I have no chance.
One of the world's best restaurants.
We rang up and they said it is booked until june.
You would have to ring up until august 1 to see if you can get a table next july.
It is a very good restaurant.
It only seats 50 or 60 and it is beautiful.
It is a fairly small city and this is in the suburb of a city.
It is in the working-class area.
If a house in the city and the restaurant looks fabulous.
A little garden in the middle.
It is run by three brothers.
Explain who they are and what their division of labor is.
He and his brother -- the youngest, 35, a pastry chef.
I've got a brother.
They said, they have no choice.
The restaurant is 100 yards from where their parents restaurant is where they were brought up.
It is a real family affair.
They are passionate.
Let's talk about the menus and the food.
That is what it is all about.
There are two menus.
I have been to a couple of restaurants, world best, the food can be crazy.
They're market is much closer to food you would recognize.
The pig, it is beautiful.
That is with oranges, beautiful colors around it.
-- the signature dish ? you raise the -- lamb, breast, and sweets with licorice.
Even though look fantastic.
Tell us about them before you even embark on the main course.
It is so heavy.
My idea of working it out, they would start with five flavors around the world.
The guacamole -- guacamole from mesko.
You can broaden the pallet a bit.
It is based on cuisine.
Candied olives, summer truffle.
The taste buds are watering.
Everything looks so fantastic.
They come with a little olive tree on your table and you pick the olives off.
It tastes fantastic, crispy skin inside.
You think the desserts cannot match what comes before, they do.
You are talking about 20 courses.
You are either ball dashboard or falling over.
You were falling over.
It is moving.
The whole ice cream is wobbling.
It is good -- is it good value for money.
Very good value.
Just over 200 euros.
It is a lot of money.
For this level, that is good.
I enjoyed as much.
People regret never making it there.
Go here if you can get the table.
This man did 48 courses before they closed.
48. 24 to go.
Great to talk to you.
Richard, the numbers chief food critic.
Up next, capital of pfizer's doing damage control after it was accused of insider trading spanning more than a decade.
Why it became a magnet for market cheaters.
? time for today's company news.
The airline says lower fuel expenses boosted earnings.
I spoke with the chief financial officer on bloomberg.
You mentioned a transformation, a plan.
It is the driver of improvement in our operating performance.
We reduced our unit costs by more than two percent.
We have experienced visible in acceleration.
In the reduction of unit costs.
Results from the world's second biggest maker says sales are down three percent, just over 4 billion euros.
It reduced its market growth forecast.
Starbucks rose above analyst expectations.
Its push into food is paying off.
It has introduced a new range of menu items.
Earlier this week, the company announced a partnership with dan into really each -- release greek yogurt.
7:46 here in london.
"on the move" starts in 16 minutes time.
Manis, welcome back.
Are you wearing a tie today?
I am wearing a tie, suit, and trousers.
I gather you were wearing shorts yesterday.
Interesting in the big corporate earnings misses that came through.
Today is a very different complexion.
Luxury, i will leave that to caroline.
For me, call of duty, world war -- world of war craft i gather you were wearing.
It got rid of its 61% stake.
It is three percent higher.
The driver in the market, there is a great debate.
Will they go for easier turns and change the benchmark and the parameters they have set to give a little bit more comfort to the market?
Energy, second-quarter numbers, profit drops.
They have eight outages in egypt.
It is a ceo fast on the move today.
I had the pleasure of sitting down with cynthia on her closing numbers.
The first set of numbers for the market.
In a big review process.
We would get a bit of an update.
Also, from the ceo of who delivered a surprising set of numbers.
A full and busy day.
I wish i had come in earlier.
Carolyne says you have lovely legs and you are wearing , super dry shorts.
You are not supposed to say the brand.
See you in a minute.
The hedge fund run by steven cohen has been charged with insider trading.
U.s. prosecutors say these -- this fund engaged in an unprecedented scheme with more than 20 companies and hundreds of billions of dollars in illicit profits.
Live at s ac capital vices will never be the same again.
It may not be.
They are busy telling clients that they work with and even their own foot -- employees to reinsure -- reassure them despite these charges, they will stay open for business.
It is difficult to predict what will happen.
These are unproductive -- unprecedented charges.
They put the integrity of the entire firm at risk.
When so many people, from a single hedge fund, have engaged in insider trading, it is not a quinces.
It is, instead, the predictable product of substantial and pervasive institutional failure.
S a c put out a statement saying thousands of people have worked the company over the years.
The actions of the men that admitted wrongdoing do not reflect the people who are working at the four -- the firm today.
Will the firm survive?
What is the stake here?
This is rare when you have a firm being indicted as opposed to an individual.
The last was in 2002. the firm collapsed as a result of the indictment.
We are minutes away from the start of today's european equity session.
We will talk markets next.
We will be back in just a second.
? are minutes away from the start of today's welcome back.
We are joined from london.
Thank you for joining us.
Thanks very much.
An unexpected increase announced earlier in profit in the first half.
We had a big flash saying leno would have an operating profit in 2000 and 13. shares are up year.
Could we see further gains?
You see car sales fall at a seven-year low.
Exposure in and that -- in emerging markets gives push in the right direction.
Much of the charges the put upon them have been one off.
You have the sanctions from the u.s., part of the profitability, as well.
I think in some respects, they have the market well cornered.
Sales the estimates and profit beat on one measure.
It is buying back shares.
Could shares be higher at the open?
I would expect they will.
I was not expecting them.
Aikido is good get -- go into the advertising thing to come back to the bt big launch next month in terms of broadband and sports channels market.
It would make shareholders quite happy.
I do feel they have an uphill battle ahead of them in te