Transcripts For BLOOMBERG Countdown 20140604 : vimarsana.com

If youre going to get into Goldman Sachs or bloomberg, the local corner store, you have to work very hard. Is it time up for tesco . They may close their worst quarter in a decade. Terminal two at heathrow takes off. Heathrow claims they have learned lessons from terminal five. We are live at the airport. Hello welcome to countdown. To therm welcome program. Its just gone 6 00 a. M. In london. Bloomberg reporters are standing by ready to deliver the stories to drive your day. Is in berlin. Ryan chilcote tracking tesco. Olivia sterns has the best gig. She is live for the maiden flight of heathrows new terminal. First on bloomberg, live from heathrow terminal two opening, we will speak with the newly appointed airport ceo in the next hour. English celebrity chef opening his first Airport Restaurant and its also in terminal two. Catch that interview in on the move. Hooton has been excluded but his presence will be felt. , notnichols is in brussels berlin. He has more for us on this story. Leaders and obama, are they on the same page, hans . Privately, officials are telling us that there will be the option of sanctions. Everyone wants to deescalate. Thats what they want to use the g7 four. Publicly, have a listen to what William Hague exclusively told caroline hyde. This does not seem like a man afraid of the threat of additional sanctions. To, then wehave will. We are always ready in the u. K. And across the European Union as morele to oppose farreaching sanctions on russia if its necessary. We hope its not. We hope we will find ways to reduce tension. Tothere are two components check the march westward. We talk about sanctions and the threat of additional sanctions two, military readiness. President obama made his first stop in poland walking right over to the f16 and the symbolism was there. He pledged another 1 billion. He will have to go to congress for that. It last time obama was in brussels, he needled the europeans about spending more in their own defense budgets. Listen to what the general secretary of nato had to say about the nato that is flexible and ready to act. Nato fitter, make faster, and more flexible. That through a readiness action plan to make sure our forces are even more responsive with the right capabilities, the right training , and the right resources. When leaders arrive here later this evening for a dinner, we will be working our sources trying to figure out if there is any split within the g7. We are here in brussels. Putin will be coming in for the normandy celebration later in the weekend it will be a remarkable couple days. He might not be on this particular guest list, but hooton will be in town. What are the chances of a meeting between president obama and hooton . Putin . Meeting isa sideline very likely. Its important to acknowledge their war and the liberation of germany. The deescalation rhetoric on that score, nothing is official. Putin is meeting with cameron, francois hollande, and ms. Merkel. Where hea great moment has two separate dinners planned, one with president putin. Who knows if you have a two flights of wine set up for that. Hans nichols on the ground there in brussels. A bloomberg exclusive for you. Of americas most successful businessmen have teamed up to help small businesses. Goldman sachs Ceo Lloyd Blankfein and Michael Bloomberg teaming up to coach entrepreneurs. I remember being a great listener and a diligent athlete, but i have a feeling we were all a bit alike. Do you feel like the Younger Generation wants to take note . Have icons like mark zuckerberg, the guys from snapchat becoming multimillion and billionaires, they dont necessarily want to learn from their elders. Those are so rare. You have a better chance of winning the lottery. Youre going to have to get used to the fact that you will have to work your way up. It will be a struggle. You will have ups and downs. Thats just the real world. I dont know very many peoples are successful who did not have lots of downs in their careers. Anyone with a meteoric rise is getting ready to fall. Knowing how hard you worked in your career, does it give you pause from young people who dont want to work on the weekend, dont want to work for the man, want to be part of a community. It is darwin at work. What do you mean . Always buy a Lottery Ticket, stephanie, and win 1 trillion, but generally speaking if youre going to get into Goldman Sachs, bloomberg, or at the local corner store, you have to work very hard. To work collaboratively, cooperatively. You have to be honest and flexible. If you are going to tell me you dont want to do this and that, i would not want to hire you. I want to know what you want to do and i dont think most kids fit into the mold of the millenial. They are too good for this and the man orwork for the woman. If there are a handful of them, they are in for a rude awakening. Withephanie ruhle talking Lloyd Blankfein and Michael Bloomberg, the founder of bloomberg lp, the Parent Company of this network. You can catch the entire exclusive conversation on Bloomberg Television this weekend. 2014been a tough start to for tesco. Share. Ve lost market today, the market is bracing for yet more bad news with thirdquarter sales. Here with what to expect as ryan chilcote. Slowing sales. Likely heard Michael Bloomberg say rude awakening. Maybe that applies to tesco. We got this report urges basically as bad as it gets. These researchers who follow say that the sales and market share of tesco here in the United Kingdom over the last three months fell by the most since theyve been compiling the report more than two decades ago. Sales fell three percent in market share down by 1. 5 . To 14 analysts and they said that they actually think that sales fell by 4 which, by their record and ours, is the worst estimate in at least a decade. One of the 14 analysts we spoke to said he put his numbers together before this report came out. He says theres downside risk. The numbers could be even worse than he thought. Abouttalked long and hard aldi and others. Its pretty straightforward. Has market share. You look at the most important da,rest competitor, as their market share rose from 17 . Not a big deal. The four biggest supermarkets to see a rise in their market share and the reason for that is they are playing for keeps. In november, they lowered their prices and they had a great january, february, and march. Tesco had a sales decrease of 2. 4 and then you have the discounters on the bottom, like aldi. 2014, they just had 6. 5 of the market and now they have 8. 3 . They are nipping at tescos heels. Ress that was not cheap. Proximity. Ut he shops all over the place. No loyalty. Ryan, thank you very much. Olivia sterns is with us and shes here to tell us why shes at Heathrow Airport today. Good morning, olivia. Good morning to you. Theres been a bit of a discussion about rude awakenings. I think im the only one who has had one because i met the new terminal two, the queens terminal in this lovely jacket. Im here because the queens terminal as just had a 2. 5 billion makeover. There are new thrills including a new blumenthal restaurant. As beautiful as this is, it will not do anything to add capacity to heathrow. Try toart of the bid to get the crucial third runway. We will talk to the ceo of heathrow later on in the hour. Back to you. You make that jacket look good. Hot pink. Ive never been offered that. Sausage rollsmore at rio tinto. Isting costs and hot savory off the menu. We will have both of those stories after the break. Companyfor todays news. The German Government is considering using it stayed down the Development Bank to buy a proposal to buy Energy Assets goes ahead according to people familiar with the matter. The lender owned by the federal government in the german state would buy alstom sales which they would have acquired in the sale. Askswagen will sell as much 2 billion euros in shares to help pay for the takeover of threewaydeep in the alliance between the vw truck unit and munichbased man. They will try to create a Truck Division to compete with d aimer and volvo. Is the biggest foreign acquisition by japanese life insurer and will give them access to clients across the u. S. Japanese insurers are venturing oad with a string thing shrinking population athome eroding demand. Welcome back to countdown. In the usm. In london trillion economy has received a inst with gdp figures coming above estimates. Lets go to paul allen in sydney. What was behind the stronger than expected results . All about the exports, mark. We got a sneak preview of that yesterday where we found they contributed very handsomely to the narrow deficit. Exports for the quarter up 4. 1 tocher bidding overall 1. 1 gdp growth giving us an annualized gdp figure of 3. 5 well above trend but perhaps not sustainable. We have volume up but the price is down and china, as we know, in the grips of a slowdown. Construction and this is what the rba and the government will help will replace the boom. Mining investment this was contributing 0. 2 to gdp growth but plenty of challenges down the track. We still have the stubbornly high dollar and Consumer Confidence taking a real pacing when the government handed down an extremely tough budget. Yesterday. Rates smart money says it will probably stay that way for much of the rest of the year. More evidence today that the Mining Investment boom is petering out with news that the Big Companies are looking to make cost savings. What sorts of things are they doing . If you work at rio tinto, no warm pies and sausage rolls for you. In the move that will save 60,000, it does not sound like broader its part of a costcutting program to cut 2. 3 billion in spending. They are refueling mining trucks in the pits now. The purpose is to reduce tire wear. The tires on those enormous trucks are very expensive indeed. Mentioned, all thanks to china. They are becoming rather the keyd with some of commodities so theyre looking to trim costs wherever they can starting with pies. Youruld you live without warm pies . I think i might manage. If they took away your breakfast cereal, it would ruin your life. Bank international will be back right after the break. Welcome back. This is countdown. Tripleg in on the new seven next aircraft outgoing. He was interested only after early buyers had begun operating them. 777 is about 1500 orders already. A240s particularly the a240600. Come into service until 2020 and of the Leasing Service we dont want to be at the very front of the program. Bloomberg at the conference in dubai and is the ceo of air lease. Lets get back to the australian economy. We were mentioning that with paul allen over in sydney. Expansion for the australian economy. You have to go back to 1991 to economyuarter when this contracted. Where does the Australian Dollar go from here . Clearly there has been a Mining Investment boom which i would say was over a while ago now. They have really managed to reinvent themselves in the Investment Bank is really low. They begin to list the dollar after the selloff. Now we do have this worry that china could be slowing in this worry that investment spending has been slow. Might see the Australian Dollar peaked out around current levels. It is all linked to china. I like how you at rabobank have been using slow, slow, quick quick slow for the motto of china. It has been very wrapped in many different it has been many sectors. Over recent weeks, we have seen signs of self stimulus. Know they are concerned thatthere is the fear could lead to social unrest. Ist they need to maintain instead of blanket stimulus, theyre trying to pinpoint various parts in order to get the stimulus through and keep the growth rate at least at 7. 2 . Jane, lets talk about matters closing to home, tomorrows pricing at the ecb. Will it be a catalyst for the euro to rise or to fall . This is the big test for draghi. I would not want to be in his shoes. If he does not do enough, it could be buy and sell. Complicating it is friday payroll data. If that is week, all the more reason for it to go up. Theres a lot to play for. We should talk about this also. Market needs a surprise to keep the euro dollar buyer slower. He needs to do something to push the stimulus. What would account for a surprise . It has been talked about much in the last month. To get that out to small and mediumsize enterprises, he needs to pinpoint that easing. Something along the lines of bank of england lending pushing the stimulus where needed is probably what he needs to do. Thatder to convince us hes doing this, the rhetoric, the former guidance, needs to be really quite thoughtful. It will be very interesting. We have a meeting at the bank of england tomorrow. You dont expect any dissent, no rate change until the Second Quarter of 25th team. Some people are bringing forward those expectations of the rate hike but you arent . Ise Second Quarter for 2015 what we have been saying. If you look at this production index, you say yes, it has recovered. It is not at the peak of a few years ago. This quarter, we could see the u. K. Economy back of the sorts of levels that we were, but we still have somewhere to go. We have seen some slowing in the Housing Market and i think it will be better. Jane foley joining us from rabobank. Terminal two that he threw kicks off today. Terminal two at heathrow. Welcome back. I mark barton. 6 30 a. M. In london. Here is the fx check for you. Big news, the economy growing at the fastest pace. Homebuilding show record lows after sustaining the 22 year expansion. Even if Mining Investment slowed, First Quarter rising by 1. 1 outpacing economists forecasted. The suggestion is that rates will stay unchanged from the. Ecord low levels of 2. 5 regardless, the aussie dollar is up against the u. S. Dollar at . 9268. Top headlines. E the top hours meeting in brussels for the g7 summit. They could discuss additional sanctions against russia and continued tightening in Eastern Europe crane. To return Bashar Alassad to the presidency. Polling had to be extended because are markedly remarkably heavy turnout. They are casting doubt on his support. It is sham election. It does not mean anything to most of the world. You cannot conduct a meaningful election in a country torn by war with so many people displaced without opposition having any proper opportunity. This election carries zero credibility. Thousands of summer demonstrators turning out in hong kong to mark the 25th anniversary of the Tiananmen Square crackdown. They are forbidden to mention the event. They broke up student prodemocracy demonstrations with tanks and live fire. The new heathrow terminal two opens its doors to passengers today. It pay off . Olivia sterns joins us now. Theres a lot of hype around this launch. What will the impact be for travelers . If youre traveling on the Star Alliance, united, lufthansa, air china, etc. , you will find a lot of glitz and efficiency. The terminal is the same size. Thats the trouble. Exactly the same capacity but there are quite a few new parts including a new hess and blumenthal restaurant, john lewis retailed. 33 new retail stores. This is four times as big as buckingham palace. They will be able to process 2400 bags per hour. This promises a smoother and more enjoyable opportunity for travelers coming through. They have realized there is a huge opportunity in retail. 70 of customers that pass or the airports actually do end up buying something. The average is about 40 pounds per passenger. Even though its not adding capacity its a great Business Opportunity for them. For more on the new terminal at heathrow and what it needs for the airlines, Terry Lundgren joins us now. Airports have nothing to do with the travel sector. They are just Big Department stores. A john lewis now in an airport. Whys it so important that this goes smoothly then at heathrow . The most important thing right off the bat, last time they did this at terminal five, they had 600 flight canceled and the cost 60 million pounds. They do not want the fiasco they had at the last opening. In the grander scheme of things, they want a third runway. This is the opportunity for them to put their best foot forward and show they know how to spend. They can deliver on big Infrastructure Projects like this and do the best that are british. A lot of those brands, blumenthal, john lewis. I will be an airport debut for them. Those are all things that heathrow really wants to emphasize and put forward. And the new runway plan, heathrow has been short listed at. Gatwick is being looked does this improve its ultimate chances of being awarded neil smit prize whenever that happens, if it does indeed happen . Its hard to say. Its a real battleground. Mix. Still in the one has to wonder if thats not a bit of politics being played by boris. The mayor of london is backing that. He he is emphasizing the hub which is in heathrows favor. They have acted as a hub airport. Europes biggest hub and you have these big hugs developing in the middle east big hubs developing. Notwick says its important because those that are growing are those like easyjet. I dont think it will hurt for a big, glitzy, grand opening for a passenger to love it. About 70 of heathrow passengers will be going through a space that is less than seven years old. People like it. You been to terminal two and youve seen it. I hear theres a big sculpture that greets you on arrival. I quite liked the old one. It had that 1950s madmen kind of charm. It was looking a little tired. Like Star Alliance won it three terminals and now they are now in one. If you are transferring it could two hours. I spoke to the architect. As a gatherings place, a marketplace, and an nikon. You mentioned buckingham palace, but the departure lounge, he sees it as a plaza. You go in and have this lovely asce and that is on the same covent garden. There are these lovely, undulating feelings with new technology. You have gates where you can actually sell ford and you have all of these common checkins. Where you go in and British Airways and you can just go to any kiosk. In this terminal you will be able to go to any kiosk thats a little bit of an innovation because there are 23, 26 airlines that will be in there, Star Alliance. That will be an interesting thing to see. Thehey are happy beyond reduced transfer times. Star alliance is thrilled. Theyve been waiting for it for a long time. What happened at the launch of terminal five. They have put through 100,000 bags are ready in the trials and they have tried over 4000 bags per hour. 24 hundred is the maxim what they expect. Maximum of what they expect. Any surprises . Theyre ramping up so it will be about 6000 passengers per day versus 4500. Kari lundgren, bloomberg airport reporter. It could be lucrative than taking center stage today in paris. Details are next. Time for todays company news. At an and ibm have looked american server American Security review. Review gives regulators more time to scrutinize the proposed transaction. These are over spying and hacking claims. A tokyobased company is working with Morgan Stanley to prepare for an ipo as early as november. Thats according to people familiar with the matter. The operator of the most popular application may have an ipo of more than 9 billion. Telefonica is sounding off whether they would be interested in getting access to its buildingnetwork while up their own hardware. Welcome back to countdown. Time in london is 6 42 a. M. Big acquisitions are continuing and this time its in japan. David joins us from hong kong. This involves the secondlargest insurer and expansion plans . Right. s the second largest life insurer. We are talking about daiichi life. We got first wind of this deal about a week back and we got confirmation this morning based on the joint statement from the company and the company that they will be acquiring, protective life over in the u. S. Billione talking 5. 7 cash deal, so about 70 per share for protective life. Thats a fairly heavy premium, 34 . Protective will be able to maintain ceo and the management that current headquarters. We are looking at a breakup of just in case of falls through, 100 14 million. How it will live be funded how it will be funded, daiichi will be selling shares in the rest is cash and supplementary sources. They are selling 250 billion shares. Yes, there may be a dilution effect. Theyre providing more growth and access to the u. S. Market here for protective life. It will be the biggest ever foreign takeover by a japanese insurer. The problem that i each is trying to get over right now is really a stagnant market in japan. And weulation is aging have negligible birthrate there. If this does happen, according to daiichi, they expect a deal to be completed by early 2015. Back to you. David inglis reporting from hong kong. 52 million in just over a decade . How about a piece of art. An auction today at sothebys in paris. Looking for a lucrative investment, this may if youplace to find are looking for a lucrative investment. Sold for 17 was million, four times the price it was sold for back in 1999, a 52 million profit in 11 years. Now it is up for auction in the sothebys in paris. This portrait is expected to sell for at least 7 million. The work has all of the quality sought after by electors. It is in pristine condition. It is presented for the first time on the market. The art market seems to be in fine health. They say political tensions and russian buyers are still present despite that. Last yeares grew 7. 5 to more than 65 billion. Mean bagging a new painting is a sure thing when it comes to making money. And ifou are passionate you want this painting of addition,d then, in it can be a good investment. In this order but not the other way. This aintne buys saying, then they have to wait a few years to make a significant profit. Bloomberg, paris. With the be confused andomist of modigliani miller fame. Can you expand on that . They just said we have 10 minutes to fill. I wonder if they have been dabbling in the art world. Is there another way to make 50 million in a decade and i thought of sports franchises. Are you planning to buy one . Basketball maybe . Donald sterling by the l. A. Clippers in 1981 for 12. 5 million. It seems he will sell it for billions, but thats a few decades. If you bought a sports franchise here in the u. K. Its harder work than owning a painting. Our ebooks outpaced to outsell print books . The latest forecast when we coe back. Welcome back. London. A. M. In trains, planes, and now automobiles that they would like a light weight materials to improve the performance of. Ford has been advancing this technology and matt miller went to their World Headquarters to see the concept car fishing light weight to the bank. Weight. Ng light this is the pickup truck that they entered into the baja 1000. The terrain is so brutal. Its a victory just to finish. We wanted to test the durability of the track and we did not tell any of the drivers what this truck was. We did not even want to competitors to even see it. This was no ordinary truck. Instead of a Standard Steel body, it was made of aluminum making it almost 700 pounds lighter. They went to extremes to prove that light can also be tough. Theres a lot at stake. This is the technology that will be rolled out in the allnew version of the bestselling f1 50. When we make the entire vehicle light weight it helps it stop faster and they can carry or tow more. Will also beng special. We have taken weight off the vehicles consistently. Weight Reduction Technology was focused on legendary track projects ike the ford gt 40 like the ford gt 40. Government is pushing everyone to deliver more fuelefficient cars to the economy. To the essential sustainability strategy. Enter the fusion concept car. Is 23 lighter weight than the current production vehicle, two car sizes smaller. This is a mix of materials. Aluminum, carbon fiber. It looks out these can come together and create an optimal solution. Advanced materials cost a lot more than traditional steel and bring down the cost may be difficult. There are issues in mass production. We have not solved all of the issues yet but we see this is the next generation of vehicles. You in a pickup. Maybe not. My aluminum pickup . Fromst over an hour away equities trading. Lets dip into the newspapers. Ryan chilcote is here with us and hans nichols is in brussels. Is a story from the wall street journal about buying secondhand tombstones in brussels. You only get a 25year concession. Someonet is up, find with the same name and plan ahead. Yours with abe vintage tombstone. [laughter] that is taking the sharing economy to new levels. At dday because its coming up on friday and we will be talking a lot about it. Famous pitch,y the 70th anniversary and the Daily Telegraph has a photo of two veterans who have not seen each other in 70 years. They are 90 and 91. Here we have the guardian doing much the same thing. Portrait of the veterans, those gentlemen right there, all headed to normandy. Britain,oldiers from the united states, canada hitting the shores 70 years ago and now we have this redeployment. Shameless pitch. I will be there. It will be riveting not just because of ddays place in history but also because president obama, president francois hollande, there are differences, david cameron, angela merkel. Theres another chilcote going. 3 00 a. M. , philip chilcote, deploy,arold boy, will the second americanbritish deployment, going to a school here where they have a very good choir. And he will be singing. 70 years on, he will have a warmer reception. Pages of history here. This is in the guardian. Ebooks to outsell print looks in the print books u. K. And britain. That is the date we see the switchover according to pwc. They also say 50 of the u. K. Population will have some kind of tablet reading device as of that they, 2018 as of that date. They quote a man we spoke to very recently, the ceo of bloomsbury books. The Company Behind harry potter. He talked about the golden age of reading. If you are a traditionalist and you like your paper books, he says that it is now and being driven by a surge in ebooks. Have you read an ebook . Im not a fan. They are genre specific. Really,not my thing, like scifi and western. I like scifi. Lonely planet travel guide has released its list of 50 undiscovered and overlook destinations within europe. Its a lovely little piece. It hones in on the top five in the u. K. Little town in sussex where the battle of hastings took place. Students know that was 1060 six when harold the second took an arrow to die. 1066. Test ryan on his knowledge. Where ir two, loch ness have been four times. You cannot the that to rest. [laughter] check up the east side, not the west. Number three, wiltons music school. Number four, the south households cotswolds. Dont go to the north. And the number five, this spot in wales. Countdown continues in a few minutes and tesco numbers are breaking. Stay with us. President obama tells warsaw he is ready to meet russia is military aggressive with military muscle. There could be more sanctions. If we have to, we will. We are ready in the u. K. To impose more farreaching sanctions on russia if it is necessary. We hope we will find ways to reduce tension. Another exclusive conversation, americas most successful businessmen team up to coach young entrepreneurs. We can always buy a Lottery Ticket and win 1 trillion. But if you are going to get into Goldman Sachs and progress, you have to work very hard. Is it time for tesco, largest supermarket, is reporting sales. And heathrow insists they have learned lessons from terminal side five. We are speaking to the chief executive at the airport. Welcome to countdown, i am mark barton. And i am an edwards. Anna edwards. First from bloomberg, we will be speaking with the newly appointed ceo of the airport, john hollandkaye. Chef openscelebrity restaurant in terminal two. Looks get 20 top stories. Quarterrst sale sales figures are here. Ryan chilcote is here to break the numbers down. But the allimportant metric. The analysts expected a four percent decline in sales. Sales declined by three. 8 . Hardly wonderful news, but that are than what the 14 analysts we were talking to were expecting. Better than the report yesterday. Bit everytle little helps. Might still be their weakest in a while. We will have to check the figures. Absolutely. We had the report coming out yesterday, saying not just sales for the week the weakest since they started doing records 20 years ago but also market share seen the biggest drop. This is a company that has been trying to turn itself around. Plan be onting the costcutting plan. The environment for consumers in the u. K. Is challenging. We heard that word. The cost cutting plan is affecting their nearterm performance. Trying to play catchup with cutting which started prices in november. Suit, saying they would make an to do that. They need to go further. Some say that is a race to the bottom. They are getting squeezed on both sides. Discounters, taking market share. They had 6. 5 . Now they have about eight percent. They are taking a little bit of tescos market share. Company has been one of the they are one of the big four. They have seen an actual rise in market share. The little guys at the bottom. And then at the top. They are expanding overseas. Yeis worth noting, and asia in asia and europe, sales falling. Better then the expected decline. Europe down as well. Eastern europe. Asdown, but not as bad expected. The u. K. Story. The u. K. We will get an update. Two thirds of sales roughly coming from the u. K. But it is an international business. Thank you very much. Heathrow, the airport, remains this makes a pitch to remain the primary hub. Appointed chief executive is with olivia stern at the new terminal. Olivia . Good morning, mark thanks for joining us. You might be able to hear one of the overhead announcements. I am here with the new head of the airport,j john hollandkaye. Terribly exciting day for you. Your prime project, which are you you are part of. But the launch of terminal five was rocky. Any teething problems . I was there for the first flight. No queues through immigration. Passengers bags were waiting for them. They went through quickly and smoothly. It has been a smooth start up to the day. So far, so good. I did get a tweet from jimmy, the head of wikipedia. He said he was one of the first passengers and things were going to belay. Tell me about the preparation you took to ensure the launch would go ahead. Quickly learn some new things from terminal five. Months togood six fully test the building, put it through its paces. We had 14,000 people from the community who helped us, attending to be real passengers. Rather than have all the airlines moved in, we started with one, united. The others will be coming. It is not about the opening day, it is about what you do over time. Passengers love terminal five. It is voted the best airport terminal in the world. With terminal to come a we have the twin sister. This makes heathrow once more one of the great airports around the world. Hub for the u. K. Something we can be proud of. Tells about some of the new and exciting retail experiences and technology. We want to have a very british sense of place when you come here. Indeed. The beefeaters. We managed to persuade them to come away from the tower for the morning. They have been reading passengers. When you go at night, most of the shops are Great British retailers having a showcase to the world of what they do so well. Opened his he fifth restaurant. Passengers are going to love having the sense of britishness as they are traveling through your. Here. We are the gateway to the u. K. We want to make sure they get a warm sense of britain when they fly through here. Likeght now, it is looking the bid to get the third runway. Doesntterminal, actually add the capacity. Would you really need is a third red way runway. This is a brandnew terminal. We were rebuilding heathrow over the last power 10 billion years last 10 years. We can do this in a way that supports the local community. We are employing 70,000 people a thirdextend and have runway. It shows we have the skill in the ability. What has changed is we have the local support for expansion, which we have not had before. Thats because people understand we are an important local employer. An engine for growth for london. People understand that heathrow is a National Asset they can be proud of. What about the people that say you boot will be flying over their homes . We changed our plans. We are moving the new runway further to the rest west so it flies higher over london. Flying is getting quieter. We are quieter than we were 40 years ago, even though we are larger. Plaintechnology technology is getting quieter. We want to minimize the noise impacts, support local schools, and thats what we are proposing. We can deliver the worldwide hub airport that britain needs. Building on the strength we have with a fantastic infrastructure and transport connections. Building growth for the u. K. Talk to me about that rule to be a worldwide hub. Part of this is not just to rival paris. But to the new airports in the gulf. Trying to become International Transfer how pure he quips heathrow is the third biggest in the airport. The Biggest International airport in the world. You can fly to 81 longhaul destinations in the world, more than any other airport in the world. An asset for the u. K. If we want to win the race for growth, all the growing economies in the americas and asia, we need to connect to the new cities that are growing. Beacon only to that through hub airports. Our cup edition is with paris and frankfurts our competitions with paris and frankfurt and some of the middle eastern cities. Heathrow is the natural place to be the worlds best hub. The best we are well located. You can get to 96 of global economies direct from heathrow with a single flight. That is how much klein has changed. Quickly, final question, speaking of the woman Bell Restaurant of the blumenthal restaurant. You to bring nitrogen gas tanks into create liquid nitrogen frozen ice cream. He has been a joy to work with. He has his own way of doing things. We are delighted to have a man. He is one of the worlds best ships. This is only his fifth restaurant in the world. Normally you have to wait three months to get a table at one of his restaurant. Here you can get it with no queue. A fantastic opportunity. It adds to the glamour and excitement. That is exciting. The challenge will be to get in and out in time to make your flight. Thank youndkaye, very much. Anna and mark, i will send it back to you. Olivia with john hollandkaye. Ceo of heathrow. And some beefeaters. Who is looking after the tower of london . You think they are real . Is not at the g7, but his presence will be felt. After the break. Time for todays company news. The German Government is considering using the state owned development inc. To buy a bank to buy a stake alstom. Volkswagen will sell shares to help pay for the takeover of scania. To deepen a threeway alliance between vws truck unit, scania, and man. This is the biggest foreign acquisition by a japanese life insurer and will give them access to clients across the u. S. I am mark barton. And i am anna edwards. Brussels, not so cheap. Hisn has been excluded, but g7. Ence will be felt at the president obama and eu leaders at the same page. On the same page. They are on the same page. Different sections of the page, especially when it comes to the idea of additional sanctions. Publicly, is on the table. Either they come 01 officials are saying is they prefer a diplomatic solution. The continental approach. Contrast that with William Hague. He i wouldnt say he is bellicose, but prepared for additional sanctions. At the same time, he encapsulates the approach here. Threatened additional sanctions, but see how the situation on the ground about ups. It is an important moment grounded develops. It is an important moment for ukraine. We do want to see russia work with ukraine. Including bilateral discussions between them. That is a way to reduce tension. All of these things are things we went to press upon mr. Putin. President obama will arrive here in brussels later this afternoon and evening for dinner. He is meeting with the new president of ukraine. Continued meetings in ukraine, than the presence comes to brussels. Then onto normandy where several of the leaders have separate meetings planned with putin. And put in. Then everyone is off to normandy where all the leaders will be mingling. As obama acknowledged, russia has had an important historic role in world war ii. What are the chances of obama and putin actually meeting at this event . What is a meeting . It is almost certainly will meet. They will get lunch together. The question is, do they have a formal meeting . Get into some sort of comprehensive discussion . How was it going to go . The last two conversations obama and prudent have had, they have been long. You cannot say they be were productive. They are far, far apart. It is likely they will have a meeting and will meet. It is just a question of the substance and how long. All the summits, there are pageantry to them. Sometimes on that comes substance. We will see that happens this time around. Thanks. Reporting from brussels. Chances are you are graduating this year. We have a commencement show speech you dont want to midst. Ms. Iss. Will come back to countdown. Is graduation season. That means commencement speech season. This year, plenty of speeches. We have the only speech you have to watch. Good morning. Distinguished faculty. Delighted family members. Younger siblings. The distinguished class of 2014. This is a remarkable day. You are graduating from an excellent school. I can see it in your faces, full of excitement, hope, and unaware you will be paying off loans into your 60s. I would like to give you some advice. If youre commencement. You are about to run through through an enormous field of uncertainty. You will take your lumps. The only way you will reach any height in life and love is by taking that chance. Able to doready and beautiful things in this world. You are all unicorns. You have to get out there and change the world. Be world changers. To to remember three things. Six things. 20 rules. In no particular order. Be hardcore. Never ever give up. Get rich. Do not pick your nose in public. You will embody what it means for america to lead the world. To the class of 20 14, thank you. Congratulations. Lets go. [applause] that was graduation, or commencement, the remake. And do great things. It reminded me who gave my graduation speech. David bellamy. The botanist. Ar those not in england botanist and environmentalist. He still exists. Must be in his 80s. His voice and manner defined himself. Chris you have in modeling you have been modeling yourself on him ever sense. Lets talk about tesco. Tescos is the way we titled the section. How troubling are these numbers . Very troubling. Minas petrol. Down by 3. 8 . The only good news are the 14 analysts estimated they would fall by four percent. This is better than what they were anticipating. Still probably the worst sales figures they have reported in at least 14 years. Not good by any stretch of the imagination. To put it in the context of its peers, they had a report. They said they reckoned in the first three months the year, they lost 1. 5 of market share. They still have 29 . But basically, since the ceo has they just keep losing market share. Walmarts problems is competitor. The only of the four big supermarket chains in the u. K. Thats on increase in market share. To 17. 1 . From 17 they were the only one to rise. He started cutting prices back in november. That stole some of the thunder. Then you have the discounters at the bottom. Not part of the big four. But very important in taking market share. They have 8. 3 , according to kent are. Cantar. Tesco is losing their customers. Interesting to consider how much of this is selfinflicted. We have a guest coming up who is going to talk about the selfinflicted wounds. As they were saying today, as expected, the acceleration of our plans, this is the ceo, dean, the axle ration of their plans is impacting on the nearterm Sales Performance. As they try to turn things around, they are negatively impacting their sales. We will see what they have to say about that. Our next guest says, we will speak to in a matter of minutes, you need to start seeing improvements at least at the end the year. You cant use that excuse investingat you are to improve. 7 26. We will take a short break. More on the retail story when we come back. Welcome back to countdown, i am and that edwards. Anna edwards. The fastest pace of growth in experts andriven by homebuilding. 22 years of expansion, we have seen for the austrian economy. The gdp figure coming in at 0. 1 . One percent. The budget cuts and cutbacks we have seen coming through. That is the question that economists are having to deal with. Now, the fx check. That is how the dollar is trading. These are the Bloomberg Top headlines. The worlds top industrial powers in brussels for the g7 summit. They discuss additional sanctions against russia and its fighting in ukraine. The syrian election is set to return assad to the presidency. The polling had to be expended because of a remarkably big turnout. We did like William Hague is out on his support. It is a sham election. Not one that means anything to most of the world. You cant conduct a meaningful election in a country torn by war with so many people displaced. Without opposition having proper opportunity. This election carries zero credibility. Italys finance minister says his country is very weak. He says the meeting with his german counterpart in berlin on thursday. What will be on the table will be the atelier and ideas for the incoming new presidency. What exactly we be discussing . Will you be discussing . How to be practical and concrete addressing jobs. A bloomberg exclusive for you now. Successfulicas most business men have teamed up to help small business. They are taking part in a Program Coaching entrepreneurs. In my mind, i me her member being a great listener. But i have a feeling we were all do you remember like the Younger Generation wants to learn from those before . Right now, when they have icons like mark zuckerberg, the guys they havechat to understand those are so rare. The lottery. Nning you have no chance. You have to get used to the fact that you have to work your ways up. You will have ups and downs. That is the real world. I dont know any people who are successful that did not have lots of downs in their careers. Anybody that has a meteor cries is getting ready for the meteoric rises getting ready for the fall. How does it make you feel it is darwin at work. What you mean . They are not going to be successful. They are no secrets. You can always buy a Lottery Ticket and win lunch we and dollars. Generally speaking, if you are going to get into Goldman Sachs and progress, or bloomberg, or the local corner store, you have to work very hard. And collaboratively and corporately. You have to be honest and flexible. If you tell me you dont want to do this or that, i would not want to hire you. I would want to know what you want to go do. I know that most kids fit into this mold of the millennial and they dont want to work for the man. Them thata handful of are in for a router weakening. Stephanie rule speaking with Lloyd Blankfein and Michael Bloomberg, the founder of bloomberg lp, the Parent Company of bloomberg media. If you are going to progress at bloomberg, you will have to work hard. Did you hear that . Its we shall all channel the owner. You can kick the entire halfhour exclusive on bloomberg tv. Worstco just reported the orderly Sales Performance the century. That is plaguing supermarkets. Lets bring in stephen, who joins us now on set. Thank you very much for coming in to talk to us. What is ailing tesco . Single factor. A combination of factors. In simple terms, failing to invest in the good times. Byse things are not positive any means. In the context of 20 years, when tesco has been powering ahead, they didnt really make provision for the times when time was were tough. The difficulty they are theyg now is it because used to be considered the value option on the high street . But now there are better cheaper options . Very much so. Times caught up with them. They did dominate the high street. They still share 30 of the market. The share is slowly eroded. Biggest are the retailer, you have the most to lose. There is a polarity on the high screen high street. That folklore statistic, one every eight, does that still apply . Its just about. Just about. It is slowly being eroded. They have not suffered a fall from grace, but part of the solution or part of the problem . I wouldnt say it is part of the problem. Inherited the business as it is. He is not standing still in putting the business right. He is been proactive in trying to get tesco back on track and build a better tesco. But it is a big job. How long does he have . It is interesting. He has been quite cori about when we might expect to see a return to growth. A couple of milestones. One is in the short term. The general merchandise transportation transformation. That is one milestone. The only other one we have is the storage schedule. Is quite a long time in the future. Fark s left will lets let phil clark defend himself. He said price cuts drove a 28 increase in volume. Theyof the story is started cutting first. They had a good First Quarter as a result of that. For tesco was a little late to the game. Now they are making the cuts and paying the price. We areong with his boosting volumes, we are competitive. Tesco was not in a vacuum. Whatever it does, the competitors will do. Morrisons has put their money where their mouth is. But but losing market share. They are losing market share at the moment. They are very squeezed. I remember when you interviewed john rogers. You asked him about vice. Price. He said there has always been a Competitive Racing pricing. Do we bang on too much about price . To a degree, yes. Discounters have taken a big chair. Are thinking it is everything, but it is not the single most important. There is a battle of the other end of the spectrum. We have mentioned me you rivalry. Away from the price, there is the type of store people want to shop and in the type of product on the shelves. They have gone back to the stoller smaller store format. They made a big name for themselves by opening big big stores. The big stores really are where the problem is. Or most acute. This is a major part of the strategy. They are rethinking big talks. Box. That is a major undertaking. That will make a big drag on the numbers. Where the stores have been redone, they are radically different. They are a lot better, but that is not coming through on the numbers. For small box, we are stretching. But they are way ahead of anyone in that market. 2. 5 thousandut convenience stores. Tesco does have a lot of advantages that the competitors do not. Thank you very much. Cuts is saying price driving deflation in the business and he is not promising sales improvement in the next few months. Thank you. Joining us. Today marks the 20th anniversary of the tian an men square tina manner tianenmen squar massacre. In time for js company news. Novo and ibm have sought more time for a National Security review of the unit. That is according to a person for money with the matter. The review gives regulators more time to organize the transaction. Tensions between the u. S. And. Hina raise rise a mobile message operator is working to prepare an ipo as early as november. That is according to people familiar with the matter. The operator of the most popular a while messaging application may have a market value of importing Million Dollars billion dollars. Telefonica is negotiating with smaller providers. They are sending out whether the company would be interested in getting access to the wireless not work network will balloon up their own hardware. Welcome back to countdown. I am mark barton. Seven of 44. Of theh anniversary Tiananmen Square massacre. The victims are remembered abroad. China, discussion is banned. We have more. A bloomberg review columnist. All opinions are his own. When you think why do you nmen square is influencing the reform drive . The thing they fear the most is social unrest of the kind we saw 25 years ago. A lot of the efforts we have have been about increasing censorship. When you think about the kinds of reforms that china needs, it needs to stop investing heavily and turn the economy upside down, away from exports. These things would be destabilizing. Since hundreds of thousands of or even millions of people out of work. These things are difficult to engineer. You are seeing every time the 7. 5 , thees away from official target, you see a rapid effort to stimulate the economy. Stimulus packages coming from the package it does come around. Stimulus packages coming from the government. Seeing is anytime the economy in china begins to you down even marginally, see a herculean effort to keep that from happening. The morethat happens, you can say reform is not happening. They are very worried about any kind of unrest. The two ideas cannot be separated. How much is the president doing to rebalance the economy . Not very much. He is having a difficult time. We have to give him some time. It is the early days. Difficult to take a Financial System or political system like chinas and shake it up in a short time. But the closer growth remains to 7. 5 , the less that is going on under the surface. China needs to stop investing in cities and bridges and roads and dams it does not need. It needs to reduce capacity. That is going to slow the economy. It will have a domino effect. The economy will accelerate to the downside. We are not seeing that. In many ways, the president is trying to figure out what he wants to do. There is a lot of rhetoric out of time and not a lot of action. I have personally compared to mics in see with abeno japan. Theres a lot of talk. Not a lot of action. Wh cap the question is Public Relations in search of a product. Thank you for joining us. A bloomberg review columnist. Heathrows terminal to opens today two opens today. It cost too half billion pounds. Will it pay off . Olivia stern joins us with more. What will the impact be on travelers . Twoou know, terminal appears to be a destination. There are fantastic restaurants. A perfectionist cafe. Louisshopping, not just vuitton. There is great art. He you mentioned that the hard wilson slip scream slipstream sculpture. A love for travelers to take in. I spoke to the head of the airport. Heres how he described the attractions to me. You will see most of the shops are Great British retailers who are having a showcase to the world of what they do so well. Blumenthal, one of the greatest chefs, has opened his fifth restaurant. One of the great expert beards export beers. Passengers will love having a sense of britishness as they are traveling through here. Are moreou will get bells and whistles. Ultimately, a lot more efficiency. This is the new home of the Star Alliance airlines. If youre flying united or air china, lewd conduct, those will be Louis Vuitton the lufthansa, those will all be here. Does this make heathrow more competitive . They are trying to put their best foot forward. They are trying to persuade those who knew to make the decision about where expansion place in thed take u. K. Aviation space. Exactly. For heathrow, longterm, it is about securing the third runway. While this is a lovely renovation for 2. 5 billion pounds, it is not add any capacity. It will add 45,000 passengers. What you need to be able to do is get more people off the ground. For that, they need a longer runway or perhaps another runway. A 2. 5 billion pound makeover, part of 11 billion pounds that heathrow has spent over the last 10 years because they want to secure the third runway. About proving they can deliver on expensive infrastructure. To prove they know how to spend the money. Also to try to help heathrow become a Global Transit hub. You have seen a lot of spending by airlines, particularly in the gulf, making their airports the stubble off owing for Global Transit. Heathrow wants to say that stay here at home. Purex blumenthal or plans its first blumenthal opens his fifth restaurant. It is called the perfectionists cap a. Great ched. Coming up, we will speed to the head of trading. We will see have the if he thinks they are bad figures. Coming up at a look at the market. Welcome back to countdown, i am mark barton. We are moments away from the start of European Equity trading. One big topic about the ecb rate decision. The bank of england rate the session. Decision. The ecb lets poised for action. Interesting is, the rate is a quarter percent. Mario draghi said he is ready to cut. Is ready toated he cut. Whent of 52 analysts, surveyed at the beginning of march, said a rate cut or cuts are coming. That is the before we got euro area inflation of 0. 5 . That is the boring part. The interesting part is, we were two to to bankers bankers. Off the record. They are discussing that they are going to do. They said theyll talking about basisg rates by 1015 points. We can see druggie mario draghi reiterated commitment. They say it will be about the forward guidance. What they tell us they might do. I want to talk to the four economists who think the ecb will not do anything. On the phone. On the move is next. Blumenthal will be talking to the program from heathrow. We will be back tomorrow. See you again. You again. Welcome to on the move Just Moments Away from the market open. Investors are said to trade this morning on tescos trouble. Lets start with you. He hasnt seen a sales drop like the one they Just Announced in his 40 years at the company. The saving grace was a little better than what investors were thinking. I will be digging into tesco. At this swanky new airport, theyve got mulberry, berber, a new first class lounge all under the Star Alliance umbrella. Will it be enough to help heathrow clinch that crucial third runway because it doesnt actually add any capacity . What have you got . From brussels, not so cheap, the g7 will be meeting here. That means everyone but vladimir putin. He will get his own separate dinner in paris and then everyone is off to normandy to celebrate the anniversary there. Markets marketing time. Ecb is a big deal. Perils on friday. Payrolls on friday. Lets find out what is going on