Good morning. Welcome. We are in london. Francine we are getting news from france with a reporter on standby. We understand the interior minister is speaking him one of the networks and is saying they have boarded a terror attack. We understand a man has been arrested and suspected of murder. The terrorist threat is unprecedented and the attack afforded targeted churches. Guy he was arrested with weapons and the kind of thing you would need to carry out the attack. We will have the reporters in a few minutes time. A futures trader has been charged in the u. S. Relating to 2010 and the flash crash. There is an extradition hearing and tell us what else he is been excused of. Like he said, the prosecutors carried out the illegal trading. The u. S. Prosecutors began here in 2009. In the neighborhood, it is known best throughout london because it sits near the flight path. It is not the most desirable. He was hearing out the illegal trading through 2014. Importantly in 2010, the day of the flash crash, there was a significant factor with an balance in trading and he had 19,000 trades on that day. There was a total of 200 billion of affidavits that one out of five on that day wanted. It gained a total of 40 million over those five years. We did speak with a Family Member who came out of the house and said they have no idea what happened and they have nothing to say. He jumped in a car to go to the courthouse because, as you said there will be an extradition hearing in downtown. The judge will decide whether or not he should be extradited to the united states. Francine what do prosecutors allege that he did . Ryan they call it spoof and layering. You place a trade without the intention of actually filling the trade and they say that you do a large volume and affectively, you tether offers to a market price and you cancel it before they can actually be carried out or filled. What the prosecutors say is that he was using regular Retail Software to do this and, at one point, actually contacted the company who made the software to have it modified so they could be automatically canceled and being given the code so he could work on the software. It is illegal trading that they prosecutors allege that he was using for five years. Thank you so much. I want to take few to paris. We have been getting news from the interior minister in paris talking about the arrest of a student who has been made an arrest that has been made. Lets get the details. What doing no . Mark what do we know . Mark the terrorist attack has been thwarted and the suspect is algerian. That is what we have at this stage. Churches may have been targeted according to papers found and, he wanted to travel to syria. This is in the context of attacks earlier this year and it is certainly making headlines. Francine we understand and arsenal was discovered on sunday and, you mentioned the attacks. How much security have we had . How much has it been stepped up since the Charlie Hebdo attacks . This will put people back on edge and things had certainly combed down in the months since january. You know the french authorities remain on alert and there is a Police Presence in paris with us definitely off of the highs that one felt in january. The authorities are still very much on alert. Guy thanks. We will continue our reporting and bring you details as we get it. There is more breaking news and i expect more as it progresses. Francine we have more to talk about. Francine welcome back. Guy we are expecting a big number and we got one. Caroline it has been difficult for tesco. There is the understatement. The 96 year history was even bigger. There was the excess of the six alien pounds 6 billion pounds loss. There is also commercial income that they are having to reverse. There is a profit black hole that they recognized. Dave lewis came to the helm and we also admitted to the pension deficit and the debt load. They cut the junk and it was no longer investmentgrade. You see earnings come away and assets and asset values being pushed back down. There are clearly few Silver Linings in the numbers. Customers are buying more and you are getting increasing transactions and volumes. That is not increasing volume and he says the market is challenging. Lets take a look at what progresses. There is improved pricing and cutting of pricing of goods. The deficit i mentioned before they are looking to fill that. The unit they say, the negotiation, it is all about the analytics and it is advanced. We knew that in january and you said you might be selling the asset. What about the tangible assets and the money they could be bringing in . It is ongoing. They may be selling banking assets. Many are looking at that today. There is positive news for leadership. Matt will be taking up the role of chief executive and drastic dave has been important and he has done a lot. He has been hit with a barrage of negative views. There is a quarter million a year that he promised and they say that they have found it and they are seeing more costsaving opportunities. That is putting a bit of a hit in the mediumterm. In the longerterm a moves the Pension Scheme with a defined contribution scheme. There is no dividend. This is a man who has done a lot. They do feel he is being drastic and this is kitchensinking the situation. They need to build the clean slate from here. Is the improvement going to reap rewards in a few months . Back to you. Thank you very much. Caroline hyde is setting up tesco for us. Francine look at the loss and it is gigantic. The share price is going up. The analysts are giving this time to work. Absolutely. That is the interesting story. It is making headlines. What are they going to do . That is the interesting thing. His focus on the u. K. Is the most fascinating story. Everyone is talking about what he is going to do with the business. He is really going to grow it. He is focusing enormously on stores and customers. We have already seen his upward turns and the reason that is happening is because of the focus on the customer. He is starting to reduce prices and about 49 p prevents trouble per vegetable. He is consolidating the brands and making some suppliers unhappy. He may be does not have 10 choices on bread. He has three and it offers clarity. That is what we need. Guy what is the tesco brand synonymous with . Used to be synonymous with value. It is a business that knows what it means to offer a brand that consumers can trust. They have started to do interesting things and have reduced the sugar content in Energy Drinks to embark on a health and wellness strategy. They have started to put more senior people in stores and there is rumors that he may do things that are variable. These kind of things bring back trust. Once he starts to roll out the strategies, it is good for the consumer. Francine he is doing things from the ground up. We are talking 23 years, if not longer. I agree. I think they will do it. There is confidence between the ceo and the people he is putting in place around the globe. The strategy is clear. He is holding back, in terms of what he is going to do. That is part of his strategy. I think they will be back in front and it will be a great time for the consumer. They will regain it within five years. Guy what does he need to sell . A needs to think carefully about his business. That is where the intelligence is coming from. I do not know, one of the things he could look at is the coffee shops and restaurant chains. That lifestyle is not appealing. We want something more dynamic. I think he will sell out some space. I think he will sell some Big Development plans. I think he should. He is the right man for the job. Guy rollsroyce names east as the executive. Breaking out of a jet engine business. He was the chipmaker of holdings. Francine a derivative loss. Operating profits behind a luxury brand. Guy yahoo had a disappointing report. At the same time, the revenue expanded and yahoo is exploring the options in the japanese division. Could a simple adding addition to your coffee make you bulletproof . Guy will you put butter in your coffee . We will show you a package that will make you change your mind. The rate is the same five years forward. It is between 200 basis points lower. Does that equal quality . Yes. U. S. Treasuries are a whale of a buy. The best bet is to sell it. Francine that was the bond manager saying that they are short. Guy it is longer than you can stay solvent. The country remains locked in this. I think greece will stay in. It is not a on united fiscal community. It is a Monetary Community that wants coherence. Francine our athens reporter is in town and with us is the director of investments. Thank you for joining us. Lets start with him being more confident on progress. Is this just talk . We are approaching agreement. Even if we get the agreement, will the Parliament Vote for it . There is the possibility of something serious happening here and you think that is increasingly likely. The big point for me is that there is an extension of the deadlines and they continue to get government reserves. There are bonds being used and i think the bigger point is, as you say, the shortterm measures and institutions are increasingly impatient. I think greece really has too much debt and too little growth. Francine does that mean default or exit . Markets have been short on greece. For risk assets, the model scenario is the better one. It is a good outcome for greece and the outcome would increase the risk. Now, i think a cyprustype scenario looks, to us, increasingly likely. Capital controls. I do not see how we find a way out of this. We are expecting big news on friday. Guy a quick question are they likely to be successful . They will move forward. I do not know if they will be successful. It will meet pensions. Guy thank you very much. We will take a break. Francine welcome back to the pulse live from bloombergs European Headquarters in london. We have the asset purchase rate. We have some interesting notes of the divergence of where they see future rates going. Guy theres two members saying the decision finally balanced. Range of views on the future, all mpc members agreed the next rate move likely to be an increase, which is interesting. They talked a while ago in a speech about being balanced with the risk of a move to the downside as large as the risk for a move to the upside. Maybe a slight difference of opinions internally. If you would think about the recent speeches that have been delivered, id say this is slightly more hawkish at the edge than weve seen previously. Francine this is also an important announcement. It is the last time we really hear from mark carney until the u. K. Elections. That is on may 7. Lets check on the pound. Guy disorderly outcome on greece. There is a risk. Decline of u. S. Activity. Maybe temporary. They are running through a range of risks. I think the headline is that the next move is up. Francine we are back with maja. When you look at what has just been released, first of all what is your take overall . Is it a little more hawkish than we thought . Based on your comments, yes. 90 is what the markets were expecting, but yes, judging from your comments, it was. Guy my interpretation. I remember saying the decision was finally balanced. Im assuming they all think they are all saying the next move is a hike and two of them are saying it is finally balanced. It could have been a 72. Anyway, when you look at the way the markets are pricing in risk in the u. K. At the moment, there has been a move in sterling, but not much else. Maya i think if we look at short dated volatiles relative to longer dated volatiles, you could argue something is being priced by way of political risk. Sterling, u. K. Equities, and gilts. I think perhaps that is right. The polls seem to point to a hung parliament. Election looks very uncertain. It is not clear how that affects the economics on the fiscal dynamics, which therefore underpin what is happening with gilts. Francine are we going to see more pound weakness in the runup to the election . Is it going to go steadily down . Maya i think it is too close to call, to be frank. Cable has been moving very closely. Inasmuch as one gets a move higher in u. K. Rates, that could support the reverse. I think the Bigger Picture for the u. K. Is one of good growth. We are looking at 2 real growth this year. Fairly constructive growth. For things like equity markets, that could be quite supportive. It is what is happening [indiscernible] when we start thinking about how the politics of at guy if there was a loser fiscal policy, would Monetary Policy need to be tighter . Maya im not sure. I guess it would depend on what sort of this goal policy you had fiscal loosening you had. Frankly, i think markets are talking about it and thinking about it. I think the economics actually couldnt be more different. We were dealing with a collapse. It is very different. Francine thank you so much for all that insight. Guy let me run you through some of the other Bloomberg Top stories. Tesco has reported the biggest annual loss in its history. The supermarket saw a loss of 4. 7 billion pounds. Francine futures traders from west london have been arrested and charged in the u. S. With 22 criminal counts related to the crash. He is due to appear today at westminster courts. The crash wuoiped 1 trillion from the u. S. Market. Guy the greek finance minister says that greece and its creditors are narrowing their differences. His comments come after Prime Minister tsipras ordered local governments to transfer funds to the central bank. The estimated 1. 5 billion euro transfer could give the government enough cash to stay afloat until the end of may. Francine roche reports and earnings beat on new medicines sales and the drug industrys biggest take over this year. There has been an unsolicited bid for the company. We broke that story yesterday. Guy lets get more on the deal from bloomberg and televisions bloomberg intelligence. Walk us through the industrial logic in this acquisition. Good morning. Basically, they have a product they are selling around 3 billion, relative to their 15 billion top line. What they have to work out is how to deal with that patent expiring. If there is not a strategic move internally, to protect against the future generic attack, that only goes so far. I think what they are trying to do here is protect their Earnings Growth. The mylan deal provides that. Francine it seems that are they looking for more money . No company in their right mind would say yes on the first approach. If you look at the valuation that the deal would be at it suggests that it shouldnt be hard for teva to push that price up. How far they will go will depend on the accretion they are looking for on the earnings front. On the valuation front, they could push it up. They could go up to 90. That is possible. It certainly has got to be an opening salvo rather than a final price. Guy lets go to switzerland. Lets talk about roche. Sam that is their business. A large percentage of russias sales come from oncology drugs. This was a pretty nice beat. 11. 8 billion swiss francs versus 11. 5 consensus. It was from the products that we are looking for them to be growing strongly. Pro jenna is the key drug for breast cancer. It is one of the Defense Mechanisms we talked about before to enable them to stand up to similar threats. This seems to be going well for them. They basically came up with a 5 Earnings Growth in First Quarter. The fullyear they are talking about low to mid single digits. This seems to be at the upper end of that. Is it possible theyve been raising their targets going forward, or is there something we need to look at as to why they will not be able to match that growth in the First Quarter . Something to look at. Francine sam, thank you so much. Guy coming up, from sushi restaurants top hospitality to fitness. We will speak to the man behind britains yellow empire. Francine welcome back to the pulse. Guy how far can you stretch a brand . To what extent does the u. K. Business climate help it grow . We are joined by the founder of the yo yo brand the yo brand. He joins us now. Very nice to see you. We need to talk about u. K. Politics, about what is happening in your business world. Lets start with the u. K. Politics. How confident did you feel operating in this country continuing to grow your business with the possible changes that we see in front of us . The u. K. Is a good place to do business. It is an even better place to do business if it is stable over a long time. I was in tony blair, i was a big supporter. I did political broadcasts. I said that britain holds the creative jewel for the world in a way. I dont think thats changed. I come from not that i come from the homeland of either one, but i believe in running a country like a business. Thats why ive changed sides. I would vote for labour a again if i thought they were the right people at the right moment. Francine so why are the people at the helm of labour not right . Do you not think they will change their course if they get into power . Simon weve had four years. We are doing well. Why change . It is no more complex than that. When weve got up to the next level, as you build a business and ive built them from nothing, you goes through these phases. We are not at that stable place yet. We are having a good recovery. When we are there the big difference for me is that you hear ed miliband banging on about a fair society. I am behind him on that. To have stability in this world for businesses we need to do it rather like america does. You get that feeling that everybody is behind america being successful. Here, we still live in that old world. To some extent, they are, but i do believe the conservatives all the politicians want that. Even though my mom says it was a better world in the old days, it is a better world today. Guy what is it about ed miliband that you think will be destructive towards the Current Business environment . Francine that is a strong statement. I think you want to continue building it. I dont think hes got the track record. I dont have confidence in him doing that. If you say, lets sort the workers out first, that is the wrong way to do it. Guy is it more regulation . Simon it is not even those details. You can argue each one of those from both sides. In this world, everybody who comes on this program has got an absolute view. I could argue most things from both sides actually. It is just the sense that weve got somebody, a company, a party in power. Francine give us a sense, it is not a policy problem simon i dont believe the policies today are