The top. The ceo steps down and was his departure means for britains biggest retailer. Good morning and welcome to the pulse. I am guy johnson. We are going to go to our top story of the morning from the corporate landscape. After 4 decades, the ceo of tesco is leaving britains biggest retailer and handed it over to dave lewis. For more is caroline hyde. Investors are welcoming the news. We saw a ruthless Shareholder Meeting and now we know the results. At that time, it was only in the earnings season when they said give me time and asking for a more relaxation from investors. And then they realize what they called a fresh perspective. They need to dave lewis and an outsider from tesco. The first time in tescos history, the third biggest retailer in the world after walmart. 500,000 employees that have to be managed. They have changed a management. The language they use in a statement saying the chairman saying it is building on strategy and changing management. They like the experience lewis is bringing. 28 years. That unionthings provides. It negotiated with tesco over the years getting products. He knows tesco intimately. New chief Financial Officer on the board. Now a new chief executive. A new dawn. Ntually a billion up round upgrades inund of stores paying off. [indiscernible] b if you came from mars, you are almost provided a proven track record. Is enormous. As with the sea and the share prices, coming with the announcement of the leaving the chief executive was another profit warning. This a company that has been point five years, seeing sales down. 3. 5 years, seeing sales down. It is a key concern we are not seeing a turnaround in sentiment. They said they have a more challenging environment they expected. Eating away. They have formidable competition. You have British Retail Consortium numbers showing increasing back in june. An area of a weakness. The euro price wars going on. This is a very challenging environment. A 30 marketin share. How do they grow it. Very difficult. It will be a real challenge for dave lewis. Riggs it will and we watch it closely. Caroline hyde. World leaders said they are almost certain that russia provided separate is in the ukraine with the weaponry that shut down mh 17. Calls for even tougher sanctions on moscow. There are reported that some of the bodies from the wreckage has been moved by the same separatists. Ryan chilcote who is one the few journalists who spoke where ukraines Prime Minister following the crash and he began by asking what needs to be done for the crash investigation and if they can do their job. Together with the security forces, we provided safety. We will do everything needed in order to investigate this International Crime and the International Community, all evidence related to this International Crime. Theres a lot of confusion about the location of a black boxes. Where are they . There were a number of rumors. Some tried to find out whether have been moved to russia. These russian 11 separatists made a statement that they decided to move the black boxes to russia. Is in violation of International Rules and standards and law. Vel a believe all of these black boxes are at the crash site. Are you that every body will be convinced by the evidence you are gathering that is was prorussian rebels that brought to down this plan with help from russia . We are to talk only about the real things and evidence. They shot down the plane in the area that was entirely controlled by the russian led guerrillas. The second issue is the missile that is the way they named it. It is russian made. The particular name at the system is sure. Ukraine has the same Missile System ande disclosed and unfolded read it to presented to the it turn National Investigators the location of every, single ukrainian Missile System. Aere was no ukrainian missed dutch Missile System in the area and we never used it through Missile System in the area and we never use it. The u. S. Already confirmed that this plane was shot down by the missile. With the International Community, we need to define the right and resized location. And precise location. Russia does not know the difference. A lot of footage is already on the internet. These Missile Systems moving in areas. Led terrorist few hoursning, and a going back to russia. We need to confirm everything. Evidence is on the table. We are expecting more information to come from the Prime Minister and he will be speaking. As soon as it starts, we will bring it to you. Well make sure you are up to speed. Ryan who was speaking, he is back from kiev. Is on talking about what the table. A lot of people and about the next 24 hours as being critical. This committee coming up. The expectations are rising. Well see fresh sanctions, more aggressive sanctions . That is the expectation. We have seen britain and the netherlands pushing hard and there seems to be more momentum. Any time they get together, they need to how you unanimity among 28 countries and it is not easy. Britain and france and italy leading. They look like they are on the same page. The netherlands pushing hard and what have to see. This particular instance and it is very difficult for some of the countries who have been sayected, italy, austria to that we think its too early to do anything and this could be damaging. He said we will like to sell the russian. He is not been an apologist but he has been very pragmatic and engaging with the russians. The netherlands are a big trading partner with the russians and they have been reserved and how they have handled it. The fact that rutte is a saying we must take action means a lot. The unit says is pushing, nudging the europeans along. They may come out with their own sanctions. That is definitely the Prime Minister has taken to the podium and we will monitor the situation. And in the. Net and the city of donetsk, another reb trolled rebelcon city. A big city of one million people. That is one place that ukrainians need to bring troops into donetsk. Thats a state a objective. That would like to get it back. What we might see is an effort by the Ukrainian Government to move and push the separatist that. Ryan chilcote, thanks. Back from kiev. Pictures coming from the ukrainian capital. Speaking atnister the moment. He is speaking in ukraine, what exactly is going to emanate. Thee red flashes or news at moment and will continue to monitor. You know aboutre it as soon as possible and. We will take a break. Well see you in a moment. Welcome back. You are watching the pulse. Watching the Prime Minister. He is addressing the situation of flight mh 17. Lets take a look in and he is talk about what is going on and the investigation. It is understandable to , prorussianystem terrorists cannot do that. Trained andt people we have information that this training took place on russian territory. Russia, bothfrom financial and arms and training. This terribley incident not to the International Incident happened. This International Crime against humanity. It has to be investigated by the International Community and i will say once again we are ready dash for the netherlands to management of the investigation and coordination as a country that suffered the most out of the International Community. But once again, my deepest condolences. My deepest condolences to those families who lost their beloved. Pray for everyone, we pray for the families. And ukrainian nation mourns. Let me update on the latest developments. Ukrainian authorities discovered 272 bodies. Which are already loaded refrigerator. We sent 2 trains, 4 cars of each. These bloody guerrillas do not allow the trains to leave the area. Will leavehe trains the area as soon as possible. Readyian government is a no come for confer a International Investigation to our dutch friends. Could lead the process of investigation, together with the entire International Community and ukrainian authorities. Ready to transfer all bodies directly to amsterdam. Wellequippedbest forensic laboratories in amsterdam. Agencyan security already started a comprehensive and thorough investigation into these deadly terrorist attempts of this crime against humanity. Betweene agreement ukraine and the netherlands, who we are ready in full cooperation with the dutch side and international and foreign agencies could to conduct this investigation. Those who committed this International Crime, those responsible, will be held accountable and together with the entire International Community, we will bring to justice everyone responsible. Country which is behind this crime. Supplied illegal weapons. Provided the financial support. Trained these people. And supported. Thiseven orchestrated this despicable crime. The Ukrainian Government will do everything to investigate this crime. To transfer the bodies. To provide any support to all respective governments. Unfold to the entire world the truth. Thank you and i am ready to answer any questions. Can i ask if the priority is the recovery of the bodies and removal of the bodies from the crash site and taking them to amsterdam . Will they have to go through donetsk . And what about the military action this morning . The key art or before us is to recover the bodies, collect all evidence of the crime. As i have already said, we have recovered 272 bodies. Which are loaded in the refrigerator. We have facilitated on how to deliver these bodies to any distant nation that is needed amsterdam as i have already said. Get therdam, we can forensic expertise. Our dutch partners can provide the well equipped facilities. Indication of any kind of military activity or operations in the area of the crash site. We understand our responsibility. The priority is collect all evidence in have a thorough investigation. How are the negotiations going . How do they happen . [indiscernible] you said as soon as possible. What is the time table . [no audio] ok, we have a problem there. Wouldve already been pretty clear on the view coming out of kiev. The situation on the ground at the crash site and neighboring cities. Talking aboutyuk the fact in his mind it is clear where the weapons came from, russia and the training for those operating the weapons, russia. Let us talk about where it is going to go from an economic stand point. We have a strategist from Deutsche Bank joining us. Good to see you. Down on been a fairly the russian economy. The defense over the last few days, we are likely to see sanctions and the acceleration for the russian economy. How significant do you think economic sanctions will be and how do you think they will impact the Economic Situation in front of you . First and foremost, listening to what we heard from the such a human tragedy. It almost seems counter intuitive to talk about Financial Markets. But nevertheless, there are implications. Weapon negative about russian financials for years. And associated with the longerterm as well. It comes with a caveat. It is over the short term market, particularly Foreign Investors have departed. I refer you back to argentina 4 years ago when they renationalize in the way that market shot up. Often geopolitical events and what is considered geopolitical events and have consequences over the medium term. And it is counterintuitive. The outlook for the russian economy is already very, very poor this year. What tothink the u. S. Do most of the heavy lift them. I think clearly it will be increased pressure on the eu and that is the main result. Within the eu countries to increase the involvement of the eu sanctions. The u. S. Has really shown it is still in control of global monetary and Financial Systems. And that is where the emphasis will still be. You talked about the russian economy and the reason it is a conversation we need to have is they the european leaders will be looking at the russian economy trying to figure out what the point of maximum pain is going to be. How do you get what you want . Jeff to figure out that bit. Where do you see it . What are the weaknesses . The targeted sanctions are going to be made . The witnesses are likely to be in the restrictions on Energy Exports and the banking sector. Haveroblem is it unintended consequences. First of all, very direct implications for the european economy. All know july and we that with russia supplying 30 of europes gas, we know what the result will be. Also direct involvement from european and u. S. Companies and some of these Russian Companies as well. This takes me to the second point. The second point is it made result in russia adopting a more isolationist stance. Also Financial Market and of course, that will have unintended consequences as well. It will likely have negative is a quizzes for portfolio and direct investors. My advance my point has been clear. , fisher market advisors really state out of the equity market. The implications for emerging markets, you have russia as part of a bench mark. They tend to be more tactical. Go down onoad we invest, the risk of unintended consequences is particularly high. Over the medium term, especially if the oil price comes down, it will be very poor indeed. Thank you very much joining us from georgia and. Much foryou very joining us. A link between one and another. More on the story. Well see you in a moment. Good morning and welcome back. You are watching the pulse. I am guy johnson. Let us find a how the markets are trading. Jon ferro joins us. 19 minutes in. Losses. Down. C 40 by zero. 4 . Own it is not all geopolitics. The ftse is down by 0. 4 . Will beof tesco stepping down. What is it worth for the markets cap . It is up by 400 million pounds. The market was given tired. The stocks are moving higher. That it is by a profit warning from tesco. It has to do with the man at the top leaving. Morrison is down by over 2 . Problem, whatving does it mean for competitors. . Morrison is trading lower. This move here, something to do with ukraine house prices. A decline for house prices. Does it take pressure off of the bank of england . I will say it is a stretch. We are going into a busy week. Gdp will come on a friday. Did anybody putting their hand out for a rate hike . Governor carney speaks the same day. He might have something to say. He certainly will. The point. Ok, ok. Jon ferro joining us with the latest on the market. U. K. Ukraines Prime Minister has been speaking making it very, very clear where he thinks of the weapons that shot down flight mh 17 came from and the training for those involved in that incident came from. He is pointing the finger at moscow. Rebels say they have the flight recorder from the malaysian jet. Thatrities have demanded the boxes be handed over to an international team. The latest. The view on this is very clear, isnt it . We need the black box and now. We need it now. That is causing an outrage. Not only the black boxes but the bodies. The bodies were left lying around. The malaysian Prime Minister has said it repeatedly that he was the malaysian victims bodies to be sent to the country as soon as possible. The people here, the people of malaysia have been outraged with the lack of respect given to the victims at the crash site. Is mourninghere going on around kuala lumpur are. Is beingt the flag flown at half staff. Remember this a country that has been rocked by two backtoback aviation incidents. 370. Before if you look at social media, whether twitter or facebook, a lot of disbelief. A lot of people are saying, why us . Why now . What have we done wrong . There was talk on twitter this morning there were protests outside of the russian embassy. Anything to it . Might are hearing, we hear later that malaysia will move forward from this. Can you bring us uptodate on those subjects on what we need to know . Itin terms of the protests, is a small protest. All under control. It stems from the fact that the malaysians are angry about what happened as to the Malaysian Airlines. It is the biggest shareholder of Malaysia Airlines holding 69 of the company. How Malaysian Airlines it could be a case of making it public and the other is to declare bankruptcy. We know [inaudible] if you take it public, we do not release thiswill week. One thing to know is the incident is probably the last straw. This incident has been saddled with financial woes. T has been trying to rally as it was in the midst of a these incidents happened. Haslinda, thank you. The latest coming out of kuala lumpur. Toortant to bring you up date with what you need to know. The middle east and u. S. Secretary of state john kerry traveling for a ceasefire. In thedliest day yet fighting and gaza. Elliott gotkine is in tel aviv. Ring us the latest. Die, intense and i, intense fighting between palestinians and hamas. The death toll on the palate on the palestinian side is over 500. The latest incidents is israel saying they described 2 terror squads the digging tunnels north of the gaza strip. One was hit with an airstrike and soldiers engaged killing them. No reports of israeli casualties. There been various reports suggesting there are some. Also report from al jazeera saying there is a general strike that will take place on the west bank due to product due to protests. There are efforts to get a ceasefire. We are not there yet. Not. Certainly are what difference will john kerry make . What is he expected to do . The outside world will hope he can knock Heads Together. There was