Transcripts For BLOOMBERG Countdown 20140402

Valentino tells us that is where the money is. Good morning, everybody. This 6 00 in london wednesday morning. Bloomberg reporters are standing by across the world ready to deliver the stories that will drive your day. David tweed is at the Frankfurt International airport following the private the pilot strikes. Caroline hyde is looking at the headwinds for the fashion retailer. Lets tell you what is coming up on bloomberg with the big interview. Numbers break next hour, we will get more from the officer. Cutive lufthansa is bracing for a threeday pilot strike kicking off today. The airline is calling it the most severe strike in its history. Live fromd joins us Frankfurt International airport. What kind of disruption is the walkout causing . One is the disruption to the flights, 3800 flights will be canceled. Lufthansa flights in german wings flights. The real price will be borne by the passengers, four hundred 20 5000 passengers estimated to be affect the by the strike 425,000 passengers as to meet estimated to be affected by the strike. Boardke to one of the members yesterday who estimated the cost of this with the somewhere within the medium to high doubledigit millions. From 40nything million to 80 million. In might make this rather hard to get to. The pilots are arguing they are not trying to make life difficult for passengers. Theyre trying to make life difficult for lufthansa itself. We certainly do not want to hit the passengers, but we want to strike against our employer. Regarding our profession, there is no other way than to strike at our workplaces. It will be interesting to talk to the Senior Vice President of communications at lufthansa. Just to get their take on how much this might be costing the airline. To that,l look forward david. There are a list of grievances. The first thing being discussed is pilots pay. The second is the transitional benefits for those who want to retire early. The third is the corporate pension. What the pilots are striking about is the second of the list, the transitional pay. Even if they can fix up the talks, what about the two other issues which have yet to be resolved . That could lead to even further strikes. It is under a lot of pressure at the moment. Jobs. L cost 3500 you have the chief executive leaving in a new one starting on the first of may. This is an airline under a lot of pressure. David tweed live from frankfurt. General motors chief executive officer told a u. S. House committee that the automaker still does not know why it waited 12 years to fix a flaw linked to 13 deaths. Ryan chilcote has more. To why itnswers as has taken more than a decade . I watch the testimony yesterday and it was very interesting. Mary barra has been at gm for decades, but she has been in the ceo role less than three months. She got the full grilling. Relatives of people that were killed by this fault. She said she would get to the bottom of this and she said she had appointed ken feinberg, who processthe bp claimants. He is supposed to get to the bottom of whether there should be compensation and how that will work. Feinberg is an expert in this area. He has tremendous experience and we will have our first meeting with him on friday. We will examine a wide range of opportunities and leverages expertise. Leverage his expertise. Ask the big concern is are people going to stop buying their cars because they are concerned about the safety . The numbers we got yesterday suggest there is not a problem yet. The sales for march were up about four percent. They sold a quarter of a million cars around the world last month. The issue, of course, how much is this going to cost . She said they want to move from a cost culture to a customer culture. We saw this at bp where Companies Come under such scrutiny for how they handle things, the cost shift onto safety. What will that mean for the bottom line . We have doubled the charts to 750 million. The power steering now. There is an overhang on the stock, down about 16 . Chrysler is up 26 . Ford is up six percent. To bring a european angle to this story, you do not see the gm badge so often in europe, but it does not mean their cars are not here. G. M. Has lost 18 billion in europe since 1999. Last month was ok. Sales rose 15 in the month of february. That was double industry growth. Maybe their losses are narrowing and the market is stabilizing. There is hope. The idea that gm, one of the biggest carmakers, if not the best of carmakers, it has been destroying opal over the years. That is still a big scene in germany big theme in germany. They do not believe in the opel brand. Much. Nk you very and people have died hundreds of thousands have been evacuated after a 8. 2 earthquake rocked northern chile. Lets get the latest from stan tee off go. Joining us from santiago. Joining us on the phone is matthew. How do things look where you are . This earthquake taking place off the coast. That is right. The earthquake struck in the. Orth of chile there are two coastal cities that were badly affected. The five deaths were all in the city, which is up in the north. It is a Copper Mining area. Three of the deaths were heart attacks, and indirect result of the earthquake. We still have or does not seem to be widespread damage, although the president just came sheive television and said will be traveling to the area have ao look at look at the damage in the light of day. We continue to get aftershocks, more than 10 aftershocks. How are businesses coping . It does not seem to businesses are affected right now. If we are seeing Power Outages, that must affect some. We have had Power Outages in the north of chile and in southern peru. It is quite near the border. Spoken to the operators of the copper mines. They appear to be working normally. There are one or two Power Generators out to the north. Some reports of highway damage. For reports waiting of how much businesses are being affected. While accounts, it looks like less than the earthquake of 2010. By all accounts, it looks like less than the earthquake of 2010. Matthew, thank you very much. Back to the European Business agenda. Report Half Year Results within the hour. Shares of the Online Retail fashion retailer. Joining us now is our European Business correspondent. Are we expecting to see continued response concern over exposed currency . Those two things at play. The amount they are selling has been far less valuable, particularly in australia. Customers have become much more expensive, 15 more expensive. In russia as well. Less in terms of profit because they are spending that money. They are trying to improve their storage facilities, their warehouse. 68 Million Pounds a are spending on capital expenditure. That will be eating into profit. Even though we heard from the chief executive, march is going to be far better than the first two months. He tried to tell us of a bounceback. When you look at the numbers, estimates are rising by a third, that is a slowdown from previous quarters. Profit down 32 . The measure of profitability should weekend, too. There might be a lot of as to why profitability is falling and hopefully that will bode for future growth. Emergingoncern with markets and currency weakness. It has been affect in the worlds biggest clothing retailer. We want to get a gauge of sentiment this morning. Thank you. We will speak to nick robertson. This weeks ecb will have to juggle weaker than forecast inflation data. We will look ahead to that allimportant ecb meeting. Has delayednancial the deal. The company will not Start Marketing shares until after april 20. Amid scrutiny of highfrequency traders. Bmw posted its best march sales ever helping the automaker lead. The Mercedes Benz they sold 19 more vehicles last month. Previous year. Bmw sold just over 32,000 cars in march compared to her sadies. Mercedes. Europes largest carmaker has applied to set up its first launch in thailand. The carmaker anticipated industrywide sales will increase 4. 5 annually. Welcome back. The time in london is 18 minutes past 6 00. Investors are asking whether the ecb will take action against the falling inflation rate. Our next return our next guest has just returned from a tour of asia. Joining us now is Foreign Exchange strategist. Thank you for joining us. This struck you as interesting . The Investment Community talking about the euro as a safe haven. Will we have seen is capital going out of the emerging markets and going to other relatively highyielding places. Per for europe has been a favorite. Peripheral europe has been a favorite. Safe haven is too strong of a term, but it is relative. The yield in the periphery look very attractive. How does that play into all of the conversations were witnessing about whether the ecb will take action to tackle a low inflation environment . You would expect people to be a bit less interested in the euro. What many are saying is the expectation of qe in the for the is positive bond markets overall in the eurozone. People are asking whether this rally is really just an expectation of qe. Qe and the eurozone could be a positive for the euro . Certainly for the bond markets. More is something fundamental going on. We have a readjustment of portfolios. They were very scared. Now they have been coming back. That trend will probably continue. If you are mario draghi and others that the ecb, what would you do on thursday . If you are a strategist, people want to know what will happen rather than what should happen. You can make a lot of arguments about what should be done, but from the ecbs point of view, it is not obvious at all. Manufacturing . I what has been going on his headline inflation. Rest of the Economic Data has been pointing up. We will tackle the boj when we return. Welcome back. It is 24 minutes past 6 00. Lets talk about japan. The boj put out some interesting information around Inflation Expectations overnight, talking about what businesses expect to be expect to see in what households expect to see. They are expecting inflation. The numbers are better than was expected, but they are still at two percent. Both sides, you can say that is a success, it is going up. Or you can say, the boj needs to do more. Most people believe the boj will dollaryan has been one of the few traits where people have higher have conviction. Ontoreally want to hold the belief that there will be more easing. Is that what you think will happen . Think for the boj, it would be dangerous to stop if things continue to go in their way, that is fine, but given the expectations if they get disappointed, there is a risk that a lot of what has been achieved could be lost. In the u. S. , we are looking ahead to the jobs data. Ago, we had fairly hawkish comments from janet yellen. How does that set us up for friday . Waiting for is something to happen in the u. S. Everybody has a similar view that we have quite a strong recovery in the u. S. , yet the markets have not reacted. Two year yields are still very low. Now is the hope there will be higher payrolls number and that could finally spark that kind of a bond selloff. It is still very hard. It could be that we have a few months of this lackluster trading. Is the trend of weaker currencies going to continue . That is very much the risk. Maybe we could get some shortterm rebound because people might eat back might be back into the carry trade. There. Risk is still coming up, we will talk more about asof when we returned. Welcome back. In first of all on dollaryan. Almost at a twomonth high. The dollar is supersensitive. Numbers. Or the going into latin american and emerging markets. We have the biggest advance. The view is they will raise rates by a quarter of one percent. Mexican peso, two month high. Day four of the rise for the mexican peso. Theof their exports go into united states. Upgradesce ministry the growth fuse, 3. 9 for this year. Tsunami warnings in northern chile triggered the evacuation of hundreds of thousands of people. At least five people were killed. This two nominee had waves of up to two meters. Tsunamiunol me has had waves up to two meters. The Ministry Says it was under the pretext of u. S. Sanctions against russia. Jpmorgan says it is seeking guidance from the u. S. Got meant. Government. Elevations of the u. S. Stock market transmissions transaction by Michael Lewis is causing waves. High transaction traders on the exchanges themselves are rigged against the average investor. He spoke with charlie rose on bloomberg. Of peoplee a Group Operating by different rules than the rest of the economy. People could think it was right to organize the stock market as a twotiered thing with some people having special access. Everybody else just taking it. It is shocking. But you can catch the full interview tonight on charlie rose. He will be on Market Makers today at 10 00 eastern time. The best Place Company to benefit from our hyper connected world. That is according to our next guest. The true value of the stock could be double what it is now. Joining me now ahead of the earnings as an analyst at barclays. The stock is trading at 51 pounds. How do you get them to 100 pounds . See if the need to multiyear growth. For investors to get comfortable with such a valuation. It is not your base case. Arm our base Case Scenario is 80. Sky scenario, we could see more issuance to longterm investors. Ock fall inhe st march. Tell me why you think the stock fell. Was it investors reassessing just how quickly the company can grow in thinking, these prophets from other territories are not worth as much as we thought they were . Or is it because the company is bringing forward its investment decisions. The two might have different implications. It is a bit of both. Investors came to the realization that asos is a retailer and internet tech company. At some stage, when your capacity gets to the level where your sales are, you need to invest for further sales growth. Investors were spooked by the profit warning. They started doubting whether the longterm growth is sustainable. The effects in australia and russia did not help shortterm sentiment. Tell me about the competition in this sector. Asos had first mover advantage. They set themselves up early as an Online Fashion retailer. They are catching up and they have big brands. Are they going to be vulnerable when those big juggernauts ramp up their online offerings . It is a fair risk, but i would like to say asos is tuned towards online real tailing. Storebased retailers are not exactly exposed correctly. Day, they arethe still at very early stages of growth. We are talking about a company that has one percent markets globally. Market share globally. Asos has grown with disciplined and it has shown that it can be selffunded and it is possible profitable. You dont think customers wont go there instead . The website of these big retailers lag asos. Both the giants have asked to collaborate with asos and put some brands on their website. We did a recent poll in u. K. Universities and twentysomethings said the three things they want from an online. Etailer is price, choice, it has competitive prices. How are they innovating in delivery . Getting that last mile right seems to be something of an session for Online Retailers. Warehouse,y have a but they are building a Distribution Center in the u. S. That is operational now. And one in shanghai. Aey are investing in Distribution Center in germany. They can get the smell right. They can get this mile right. Doesnt seem to put investors off . Not really. We pose the same question to the cfo. Served caring about how will sustain its rapid expansion. If they wanted to be, they could be the 70th largest company. At this stage, maybe that is not their priority. Thank you for joining us today. Just ahead, italys elite came together on the red carpet to celebrate the business of fashion. Some of the top designers will give us their take on the future of fashion. Amazons chief executive officer jeff bezos is stepping up his push to reach customers in their living rooms. The company will unveil a Television Viewing device for streaming video. Anddevice will put amazon closer competition with apple and google. Chinas largest trader kosko has agreed to pay 1. 5 billion up front for the agricultural trading unit. Scarce farming resources at home. Ford motors Russian Joint venture is cutting 950 jobs at two factories in response to the deteriorating demand in the country. The russian auto market was declining even before the countrys annexation of the crimean peninsula. Car deliveries fell four percent in january and february. Five for five 5. 5 drop. Welcome back to countdown. Lets talk about the business of highend fashion. Fashion means business for italy. The countrys elite turned out in force last night to celebrate the industry. Caroline hyde was there on the red carpet to talk about the future of fashion. Valentino i am looking at some of the names of the people who were there. They are stressing the importance of fashion. This is called the glamour of italian fashion, a celebration of italys dominant in the fashion world since world war ii. They were rolling out on the red carpet. Much of the british paparazzi were camped outside desperate to get photographs of these people. If we think about italian to the, many think back heyday of the 1950s and 1960s when Elizabeth Taylor and audrey hepburn. It really was a time that but designers on the map. You had the birth of these huge fashion houses. We managed to speak to the man behind valentino and he said, fashion is still crucial to the country. Ago, they weree talking about politic and they were very angry to discuss. In italy, they do not care so much about fashion. That is the business that makes more money. There has been some concern about maybe there is a lack of new talent in the fashion world in italy. Any of the did any of the attendees have anything to say about that . Valentino is an interesting case. He has not passed on to the next generation. He found a new set of creative designers. Many feel this is not happening in italy at the moment. It is still too tom aided by these huge fashion tom aided by these huge fashion houses. Hugeminated by these fashion houses. Talent is still growing and i still buy all of my goods from easily. A lot of talent is growing out of italy. I am very happy working in italy. I have offices in italy. This is why the Prime Minister was there at the event. He dodged all of the cameras. A lot of protesters behind this about some of the political issues going on in italy. He went around the back. Elizabeth hurley was there. Some amazing celebrities looking absolutely fantastic ideas trying to extol the virtue of italy and trying to put it back on the map. Showoff versus london and paris. London is far more glamorous than it really. I did not see you in those pictures. I was in a coat. I am not sure i could quite compete against elizabeth hurley. Fancy wearing body armor that gives you superhuman strength. Bloomberg went there to look at the newest wearable robot. Responsible for the wearable robot. Extension of the body of the user in the sense that the system is able to read the complex movement of the body. Has 50 kilograms for each arm. Complexe used for handling situation. Survivors. Cue of , but are other examples this one is the most complex one in the sense that it has a set the ability to grasp objects. The ability to rotate the arm. The benefits of having a wearable robot is that you can combine the intelligence and the perception capability with the strength of the machine. Others are bringing the system to the market. The timeframe of three to four years. Will he come back, we will have more details on that lufthansa strike. We will hear the company said of the story when we come back. Welcome back. Are an hour and nine minutes away from the start of European Equity trading. The story took my attention ifa fromt banned fe choosing the cup then that the cup venue. The possibility of holding the world cup in qatar. That is looming in 2022. He does not think the governing body should be allowed to make decisions about where the tournament is held. He thinks it should be done by a computer. The computer could decide. Into the Daily Telegraph coverage of this story. They have been running for a Campaign Calling for a revote. There is not going to be a revote, no matter how much the British Press calls for one. There is an investigation going on i the Ethics Committee over alleged corruption surrounding the 2022 world cup bid. Lets broaden the discussion. This one is from the times. It is about the rising tide of wealth in china, how people increasingly are being remembered with representations of more extensive flayer. Flair. Increasingly, digital cameras, burning effigies of digital cameras and bottles of heineken. Airconditioning unit. This sounds like it would break all kinds of pollution they do break norms of modesty, i think and simplicity. A curious little story about how people are getting wealthier in china. There is a culture of consumerism and people are celebrating it. A modernday take. Ryan, thank you very much. For ansa is bracing threeday pilot strike kicking off today that will see it canceled the vast majority of flights. Airline is calling it the most severe in its history. We are joined by the Senior Vice President and head of communications i found by phone. How much is the strike going to cost the company . Are estimations are that we 40 milliona loss of or 50 million. You after the strike has happened. You are in discussions with the pilots about a number of grievances . Dos particular strike has to with transitional benefits. Does that mean we could see other strikes around the other issues . Offersink we have made that are good enough to start negotiations with goodwill from both sides. There are no compromise is possible we hope we will pick up the conversation pretty soon. Do you think the strike could be cut short if the appetite for negotiation is there, barbara . We are not expect anything less than three days. With a network of 1800 flights and 3800 already been canceled, you cannot just revitalize the system on the spot. Is toe are preparing for make sure we take off on saturday after the strike. The pilotshe things are angry about, they were told these cuts to their pay and benefits were about saving money and then they see the business increasing dividends. Can you tell us anything about how the dividends look set to progress . The pilots have a point . We are not talking about cuts. We are talking about how high are the increases of the salaries and then we are talking about at one point in time and with what conditions can pilots stopped flying in the future. We may talk about keeping the system running for the next decade. So that lufthansa can still afford it for the next federation of pilots as well. How much to pilots contribution contribute on their own . Barber, thank you very much for joining us. Senior Vice President for communications on the phone from frankfurt. Countdown continues. We will get results from asos and then we will be speaking to the ceo of the company, that is nick robertson. Well be back in a couple of minutes. Move tonga cancels flights they kick up a strike and hope of better benefits. Northern chile is shaken by a 8. 2 earthquake, trick doing tsunami warning. Gm ceoc l discusses why took so long to fix a problem. Scenee italian fashion invaded london. That is where the money as is. It is the business that makes more money. Welcome back to count on. Countdown. I am an edwards. We have some big interviews with you for you. Numbers from the untimely Online Retailer. We will be talking to nic robertson, the ceo, a little later. And during on the move, speaking with the Intesa Sanpaolo ceo. He took over as the head of the secondbiggest bank in september. Just getting the number from the fashion retailer. Caroline is joining me on set to go into the details. Retail sales up by 34 . That is in line with analystsestimates. Not seeing the pace of growth in terms of expansion. Was is a company that roughly trying to line itself for a flurry of expansion over the next few years. They have increased the capacity at which they can sell. Do 2. 5timate they can billion pounds worth of sales per year. That means that sales upper about tenfold in five years. Faster than they had originally promised. Does while you are having an expansion in sales, the currencies in which they are coming in, the austrian dolls are dollar and russian ruble do not convert. That is something that investors had to wake up in march. They were telling us about how they are investing in growth for the future. Who wereto analysts anticipating a share around this price of around 100 pounds. That weal we sat have seen the price we can 15 . Weekends 15 . Pricewe werehe used to. Is 100moment, the price times earnings. Felt they investors were overzealous. Not so, says barclays. They felt that the investment would make it a Stronger Company overall. They talk about it in the statement. They say we are vesting investing in our rtu platform and china start up. They have a new euro hub. A warehouse in shanghai. Is 32 among u. K. Twentysomethings. Thank you. Are bracing for a threeday pilot strike for look on the. Luftansa. Nda for kind of disruption will lead walkout cause we have been speaking about the flights that will be canceled. 3800. That will leave about 500 flight still flying. I can see the on plane coming in. Twobeen here the odd hours or so. Not very many. The big impact will be on the passengers. 20 425 thousand passengers will be affected. Disruption tohe the bottom line. We were speaking to the head of communications. She came out with the most accurate estimate we have had so far. It actually could cost the airline between 40 and 50 million euros. They wont know until after the strike has ended. That could actually have a Significant Impact on their efforts to reach the operating profit target of 2. 6 5 billion by 2015. The pilots are not going after the passengers. They dont want to disrupt them. What they are aiming this to hurt the airline itself. By our strike, we dont want to hit the passengers. With fish we went to strike against our employer. Regarding our profession, there is no other way than to strike at her workplace in the cockpits. Cost carrier german wings also on strike. That will make it difficult to get around inside germany. Swissair, brussels there, euro wings all of those airlines will still be operating. What is it the pilots are striking about . They have a list of grievances. Dont they . There are three things which are being negotiated at the moment. The first is pilots pay. The second is the transitional arrangement for pilots who want to retire earlier. And there is the corporate pensions. The pilots are striking over the issue. This leaves open the possibility that there could be industrial action related to the other two. They have another grievance. Lufthansa reinstated its dividend. No dividend in 2014. Luke donald has said any money saved from the 1. 5 billion program its Expense Program would go to new aircraft. Now they are complaining it is going to investors and financial markets. Unders an Airline Pressure from its pilots. Shorthaul and longhaul. David, thank you very much. Reporting from lufthansa. Five people are dead and hundreds are were evacuated after an 8. 2 magnitude earthquake rocked northern chile. Heres the latest from santiago in chile. Ofnt a picture if you could any disruption we are seen as a result of this. Where you are in the capital and also further north closer to the epicenter. The series of aftershocks that keep coming. Hadhats right, we have aftershocks in the north of the country. Where the earthquake occurred. This is the atacama desert and the northern chile. Santiago,e capital, it is quite calm. About 3 00 in the morning. We have the president of the country address the nation live on television. She will be traveling to the affected areas in the morning. Although it looks like there is widespread damage of the 2010 quick, we need the light of day to see the extent of the damage. And understand it evacuation was under way along the coastline of today. Chile. It is a country that is well prepared. Howwas this how was are businesses coping . The accurate evacuations are taking place along the coast. To stay withgoing family. This has affected business. Lost of installations on coastal sites. Power generators. One Power Generator belonging to a Company Called ecl is out of action. We are still gathering reports on the Copper Mining industry. The main activity of the north of chile. Most of the copper mines are unaffected by the coastal earthquake. Love the associated infrastructure will be affected a lot of the associated infrastructure will be affected. Thank you very much. Back to you. Chinasp, pressure on financial system. How will the banks whether a possible slowdown . Investor or just coming up after strategist coming up after the break. This is the cap that drinking milk. Welcome back to countdown. I am an edwards. Is ang us in the studio senior emerging market strategy. Thank you for coming in lets talk about russia, investing in russia. A number of businesses caught up in the peripheries. Whether it is visa, mastercard, jp morgan. A little bit of pressure or at least confused. How is this affecting the Investment Community, what we have seen so far . Declined intite has this crisis. People are waiting for more sanctions. The market has been pretty bad. Flows. Aabout capital clear risk. Is it getting worse . If the crisis disappears from , in the coming months, do things get worse for russia . The market is not expensive. Time, we can draw a negative picture for russia. E companies will have but stuck about china. You have a fairly gloomy forecast for the chinese economy. You suggest they could see grow falling as low as five percent. The government is talking about Something Like 7. 5 , the last the same as last year. Would five percent ring alarm bells . Works for a lot of people, it would be a problem. It is aere is a soft landing scenario. Angrowth will be guided in orderly way. At thehis will be discretion of the chinese . Overnment parks it is more likely they have to accept lower growth. Cracks are developing in the shadow Banking System question mark to they develop into chasms . Or are they hairline fractures that markets can cope with. Everything can become a big crisis, but right now, it is a sign that there is increasing stress. Low. Ransparency is a lot of links between the real estate sector and overcapacity. Festiveve seen some the domestic default already. For you, it would be the Steel Industry that would really flagged big concerns for the economy. Steel, cement, real estate. In the last few weeks, we have seen more problems. Real Estate Developers getting into trouble. It rumors that the central bank is pricing them out. Ts why now why now . There has been a lot of oversupply in big parts of china. A bit. Is falling the q1 numbers have been week. That is a concern. Real estate is the biggest engine of growth in china. They give for joining us, martin. Strategistg markets for ing. Results from the you ok Online Retailer. We will hear from back robinson the ceo. Nick robinson the ceo. Welcome back, i am an edwards. Is the chief executive of the business, nick robertson. Thank you for talking to us. In march, we saw were stock come under pressure. Down 16 year today because of concerns about exposure to a emergingmarket currencies. Can you update us on how that is working on your business . That is less relevant to be honest. We had a strong first half. This is the first year we said we would crack a billion of sales. Emergingxposure to markets. We launched a website in china. That website is going great. The core of our business is still the u. K. And the u. S. What to the market understand that now they do understand . Market wask the expecting too much . Expecting it to come at a lower cost . Promote a twomonth d in february sales were softer. The biggest story was the investment we are now putting in. That is why the prophet has gone back. We are building for a business that is 2. 5 times bigger. That. Automated we are in the process of opening a european disturbed vision center. We have expended the center in the u. S. And open to china. It is about the level of investment we are putting in to support bigger business in the future. Talking about the size of the business, i know berkeley talked about the u. K. Penetration at 20 some percent. Can you move that figure around the world and forecast how big this business could be saved there may with similar success in other markets . That is the point. It is unusual to be a bigger business outside your home market. We are still growing at 30 in the u. K. Other look at the markets, germany, and the u. S. , we are still relatively small. The potential is huge. Allows for other opportunities such as china and other parts of the world. Click some of the biggest perks and some of the big brick and mortar retailers have been slow to get with the program. They are now selling more online. Ramping up their own online offerings. You see a threat out there from a resurgent wreck and mortar is this brick and mortar business . Continued tot benefit from the structural change. The potential of profession being bought online is on the up. That is the opportunity. If we take those big brands they will have Successful Online as this is in time. That is the way the market is going. Across aith them number of sub brands. We are labeling each other to benefit from this new world. Where is the most exciting innovation taking place in your business and industry . A lot of the distribution businesses are quite excessive about the last mile. How easily and quickly they can get products to consumers. That must be one area you are invading. Innovating. We can see the willingness of consumers to order online. It is that last mile. We have been at the forefront of that. If you take the u. K. As example, midnightrdering up to to get the next day delivery. You can do that. You get a text the day before giving the opportunity to change the address. Even on the morning of the delivery coming get the text or email. You get the name of the driver. You can track your parcel to the front door. All these things are hugely important. In the online space looking at ways of consolidating deliveries . If i order 10 things online, atll come out once . Once . What kind of invasion are we that innovation are we seeing around that . We have the collective plus offer in the u. K. You can pick up or return your 3000 to 2. 5 thousand addresses. Dropbox is in office blocks. It is about trying to make it more convenient. Staying at home is not ideal. That is why the text is ideal. People dont want to stay at home waiting for the order. We spoke to an analyst who saw valuation of 100 pounds. Right now it is trading that have that. You tell me you focus on the business and not the share price. But would that be could for the sector good to the sector . To talk hard for me about this. But this is about the longterm potential. We are growing at healthy numbers. The opportunity has and will be outside the u. K. 97 of the twentysomethings live outside the u. K. Strong in the u. K. s space. As you can see, it is in high demand. Thank you very much. Nic robertson from the london stock change. Coming up on the program, General Motors battles the biggest crisis since bankruptcy. Can the ceo distance g. M. From the old culture . Welcome back to countdown, i na edwards. Would be a good lets check in with latin america the rio. Real. Of the majordvance currencies. It is expected they will raise rates to 11 . Pay so offpal a twomonth high. Good news for u. S. Is good news for mexico. Day four of the rise. Off a twomonth high. Anna edwards. Tsunami warnings in chile. Base they went off after a 8. 2 earthquake. The sooner my the sunol me tsunami had up to two meters. The Ministry Says it was under a pretext of u. S. Sanctions against russia. Ap morgan is seeking guidance from the government. About stock market transactions by Michael Lewis are causing waves throughout the financial world. His new book says high transaction traders and the exchanges themselves are rigged against the average investor. He spoke with charlie rose on bloomberg three i dont understand how you have a group of people operating by different rules than the economy. But people could think it was right to organize the stock market in a here twotiered thing. Some people would have special access. Ead it is shocking. You can watch the full interview tonight on charlie rose. Makers. Be on market that was Michael Lewis. Mary barra told the u. S. House committee that gm does not know why they waited 12 years to fix a flaw that caused deaths. We have more on the biggest crisis the company has faced since bankruptcy in 2009. She said. Essentially she didnt know. That was interesting testimony. Something image makers and pr companies should watch. She has been on the job for less than three months. She has been at gm for a couple of decades. She was subjected to the kind of full growing, bipartisan congressional attack. The relatives were in the room. She said she is going to get to the bottom of this. This came to light on her watch. It it is her responsibility. There is an mitigation . Investigation . She said she would not make all the results available to the congress. The second thing she said was ken feinberg has been retained as counsel. He advised bp. He was in charge of claims for bp. 9 11 from the victims. That is an orton. That is important. She said they are going to take two months what if any competition there should be. Have a listen. We dont have the sound. You gave us a good summary of the point she was making. The issue facing the company is twofold. The first thing is, in terms of their bottom line, are people going to stop buying gm cars in the u. S. Or anywhere as a result of the scandal . Are they going to feel afraid and decide not to buy gm . We got the numbers for march sales. Up fourles were percent. That beat expectations. That is positive. But these are early days. Digg overhang on the stock. Down 16 for the year while the competitors are up. The reason is because of all this uncertainty. The day before yesterday, gm doubled the charge is going to take as a result of this recall. People dont know exactly where this will and, especially with a guy like feinberg in charge. What about that is the root level what about the european footprint . It is like the cancer. Lost 18 billion since 1999 in europe. It is trying to rebuild sections of global opel here in europe. This scandal will cupcake things. Complicate things. Month. Y was a good sales up 15 . Double the market average. The city car popular with women. Talking about how losses are narrowing in gm europe. The situation appears to be stabilizing. But a lot of naysayers and germany saying, again, gm is the root of opels problems. Whene in germany remember opal was the biggest car seller or bigger than a volkswagen. They blame gm. It will be interesting to see the crossover. Thank you very much ryan chilcote. Is this fors big italy. The countrys elite turned up at the albert reads them in London Museum in london. Tour line height was there on Caroline Hyde was there on the red carpet. The elite of the italian world dissented on london. Some celebrities and models. Elizabeth hurley. It was sensational. All about self ration a celebration. Ever since world war ii when you had Elizabeth Taylor. Flocking to rome to put on their jewels. Their shoes. They lusted after them. It put valentino on the map. Ver onh a on the map on thesace versace map. People are a little worried at the moment. Telling me that london was more glamorous. Im sure francine will have something to say. Interestingly, tom ford was very much a naysayer he naysayer. Saying italy is the number one. It is both ways. Italy is crucial to the industry. I make every product in italy during the quality and craftsmanship is incredible. The two things go handinhand. The fashion industry is crucial to the fashion history. Industry. The new Prime Minister was there to promote the industry. He sidestepped. Ever primet minister. He went around the back because there was a protest against italian politics. A. B. He didnt want to be cut in that. A bit oformation an admission that there is a crisis in the fashion world. Potentially, handing over to mike to the next generation too much to the next generation. He has bucked the trend that. A bit. He was quick to recognize the industry is crucial to the economy. His hopes lie with the new Prime Minister. Rough ane going th incredible crisis. Everybody admired it. Everybody is trying to copy it. I think it is something to be proud of. We have a new Prime Minister, very young. Full of ideas. We think he will do well. Think it will be a change. He was not only enforced time to plug the industry, but also meeting with the promised her in the u. K. , david cameron. To work people to investing in the economy. The fashion industry has high expectations. Thank you very much, Caroline Hyde. Details on the 8. 2 magnitude earthquake that rocked northern chile late yesterday. Early in european hours this morning. 7 40 in london. Countdown continues. First. Bloomberg. Time for company news. Just a zone is this jeff bez effort toping up his reach customers in their living rooms. Amazon will reveal a Television Viewing device. This will put them in closer competition with apple and google which offer their own gadgets for this purpose. Grain trader has agreed to pay 1. 5 billion for just over half of the agricultural Training Unit three the deal highlights chinas push to sell more food overseas. Motors joint venture is cutting 950 jobs. Market was auto declining even before the annexation of the crimean potential peninsula. Car deliveries fell four percent in january and february following a five percent drop. Welcome back to countdown. 7 44 in london. Joins me with a preview of what is to come. Lacqua joins me with a preview of what is to come. This will be descended straight day of gains. Give some that will impetus to the european equities. A decent session giving some st is for european impetu for european equities. We have the ceo of the second. Argest bank in italy they were setting up the asset sheet. We will talk about history gigi. He has been about his strategy. Where does he see the italian landscape . We will ask them about russia and sanctions. For the first time in a couple of weeks, we see jpmorgan taken some action against the involving a Russian Embassy in kazakhstan. We will ask them if european eggs need to do this sort of thing. Story. Nating that is coming up at the top of the hour. An earthquake triggered us a nominee. Hundreds of people were evacuated before the tsunami struck. We are keeping an eye on copper prices. Chile is the Worlds Largest copper producer. Are we expecting much of an impact . Not directly as a result of this. News from the tin. S the bolton bulle i want to show you the geography. To the north of chile. That hits on two key areas. They have been declared catastrophe areas by the president. What is important here, trying to translate what is a human story into a business story, we are hearing from the minors in the area. They are operating normally. The reason i mention them as they are close to angloamerican operate south. At thee not impacted moment. Likewise, hearing europe, here in europe, i biggest copper miner is until the cost the. Agasta. F we supposed spoke with a rep l. A. Our reporter in chile. Far, from a human side, this is five people that have lost their lives. Hundreds of thousands of people have been evacuated. Im not trying to minimize the scale. A goodloss of life is deal less. But we continue to get aftershocks. The initial earthquake measured 8. 2 on the richter scale. The most recent one was 20 minutes ago. They keep coming around. In the five. Region. The commodity i am talking about this copper from chile. Substance inmore terms of whether we are past the worst of it, we will see there are other issues. Another big issue that will play rs. On the minors mine our next guest to gives us an overview of the data to watch today and later this week. The employment report due out later this week. And the focus on earnings as well. He is up next. Morecambe back to countdown. Lets take a look at the markets. Our market commentator joins us now. Where to start question some earnings. But start with lets start with asos. It is a company we have always liked. A forwardson is thinking man. He got the message that a lot of guys like me do not get. It is about being online and getting people what they want. They had a setback at the been in this year. 15 . S lost 50 but they are up 56 for the year three the problem year. The trouble is the bar is set high. People are easily upset. How does this play into Market Expectations . Markets are not far from alltime highs on some of these indices. Where does this fit for the beginning of the Second Quarter . Lets look at the states to start with. 16 500 is the highest point for the dow. The ftse 13 and change. Maybe a bit of scope there. But they keep dragging us down. What i am saying is when we start with based the Second Quarter earnings, for that and to crack, they have to be exceptional results. Has that winter really taken its toll . Looking at the pmi figures, it would appear the matter is in hand. If that is the case, ok. But janet yellen was pretty dovish. She said, you need us. We are there. Unemploymentabout and the experience of unemployment. Talking about that is the dumbest thing. Ovish thing. Facing Second Quarter earnings. Weterms of the macro agenda, have the jobs report of the u. S. Are you expecting the weather affects to actually boost the numbers . Surprised at the forecast. The private sector. Jobs. Onths was 139,000 they are expecting 193,000 for the month of march. You scratch the back of your head. We have to remember the u. S. Is by very diverse. Temporarilye that unemployment thing. It is not solid. You could lose your job at the drop of a hat during nonfarm payrolls, the last speaker was 175,000. For march, that is very rich if they achieve it. The ecb meetsy, on thursday. Are you expecting further action . Action to the degree that deflation is a big worry. I dont think negative Interest Rates are on the agenda. Overseas bonds are on the agenda. A up next. Is they will be watching asos as the retailer reported numbers in the last hour. Pete keep an eye on the Mining Sector in the wake of the chilean earthquake. Stay with bloomberg. Welcome to on the move. Coming up, the chief executive of italys largest bank. First we are Just Moments Away from the start of european trading. We have everything covered from companies to currencies. Joining us is manus cranny and Caroline Hyde. Editor davidpean tweed. Lets have a look at some of the miners. We had the same way to earthquake off chile. We had an 8. 2 earthquake off chile. Power is a critical issue when it comes to minors being able to continue their operations. They have evacuated in the north. F chile there are disaster zones that have been declared. So far it has not been impacted. Thank you. It is hurting to different areas. The passengers. Its being described