I am guy johnson. Francine is not here today. She is at the bloomberg summit. She will be back soon. Our top story. Lets talk about tesco. Bleak news again. It was not top 114 billion pounds and shares will be down as much as 14 . Charles, 100 days. Big ofthis come as a surprise they significantly reviewing . He said he was going to review it and we knew it in october. It was a degree to which it is him giving the guidance and that he did not give at the end of the told her. The key point is the commercial policy which we knew tesco had they buyhigh how from supplies and cello. The way they were buying was also in a mess. Is he big question is going to get us back to where we a newfore our are we in normal where the company will be at a lower level . Unlikely that is the Trayvon Martin and that tesco had for many years that years and we many will get more guidance in january. What is done in the short term is say, all of the back margin deals going on and they came in a number of ways with the range group of 31 . Some of the things that were associated with the come back margin because you are saying, we put it on that promotion or the shelf and that much money. That is all going. He will say we won narrow the range down to what the customers want and we will sell a book and a load of them and get the money. Here is the big question is it all bad news . Probably not. With any luck, all of the bad news on the u. K. And almost all of the bad news on the u. K. He has had very little time to look at subsidiaries. Challengeat is in is in trouble. It may benefit from some of the same deals. Marketremains a troubled where sales keep falling and we have not heard anything on how tesco is doing in relation to the others. It has been there secondbiggest market. Warren buffett described investing in a tesco as a mistake. What do the big investors will say to management . They will ask the question, is at the bottom . Have we seen the last of the bad news . Him, you are to now working for tesco. Can you be fair to the suppliers and make a decent margin and be competitive for customers . I think his answer will be, yes. We have to see how he turns that in trading. They are freezing things for christmas. We will start seeing a new trading stock in the new year. Happensll see what then. Charles, always a pleasure. To greece now. And what is described as a pretty risky gamble by the Prime Minister. This moves the votes that were set for february to a week from tomorrow. Hans nichols joins us with what is going on behind the scenes here. We have had this extension of the program on which samaras said he would deliver. What does the cover for the fact he had to do that and bringing it forward to mix up the politics . We still do not know the candidates who will be running. So much up in the air in greece. Wants . What samaras what he wants to do is accelerate the timetable. The initial president ial election and is a ceremonial post that was supposed to be in february and he will move into december, december 17. He does not have the numbers. Vote for theast president , he would need 180 votes. Vote, noconfidence vote, triggered a lot of this he only got a 155. He is 25 votes short. You ask the question of will it taper over the fact that they have not left in the imf program . That is a heck of a gamin because the Opposition Party, which is meeting and the opposition and meeting in the opposition and leading in the polls, they will not let them. Proof positive that the samara government is working to keep the grease under the imf for another duration of time. The domestic challenge for him is he may be able to get away with it would international debtors. But domestically, he still has a challenge. Seems stock market humbled this morning. Are people talking seriously about what happens . Coming closer to the events but i had in the polls and saying he will make significant changes. To what extent are we about to see a very Significant Development if he cannot make the math work. Routes challenge the eurozone would be held together, are we getting back to that again . Risk offhe systemic the table . Chris it depends if you believe samaras claims that have moved to the sender. They are saying basically untenable. Yes, we are going to and austerity but keep International Bond investors on our side. Those two are fundamentally at odds. As long as you are playing your domestic audience and is this the you will end of every, lets be clear, the economy has been crippling to the Greek Economy. It is difficult to find an economist that said greece has prospered under the six years a recessionary growth and the last quarter they came in at 1. 9 . If theyre going to end austerity, it will cause a massive concern in the bond market. They are fundamentally at all. Thats is why this damage to my samaras is so interested. Just trying to say i did not keep my pledge to as the dust from the imf bailout programs by the year end but up on us another two months and please give me another two months. Well see if he can pull it off. Andn interesting Christmas New Year for greece. Hans nichols joining us from berlin. Morning,ur radar this cloud control. Hosting pounds all morning on the key topics of tact and the bloomberg enterprise summit. You are looking at live pictures and we will bring those to you. We have great guests, god. We discussed security with him. Guests comingat up. That looks like caroline hyde. We will be talking to a ceo, coming up later as well. Credibleny facing a competition from google and amazon. How does he differentiate . Are we seeing the diversions with in Cloud Computing . A political perspective on all of this in the tech sector. Be joining us. She could be running for the mayor of london. How will she change the taxing if she were to tech scene issuer to the mayor . Please give us your answers to this question do you trust the cloud with your data . Do you understand the risk and you are running if you do . Let us know. Join us on twitter. That is the question for the day. Europes qe as economy falters. Sovereign qe seems to be imminent. Better late than never or a little too late . We will get an site into Mario Draghis next move. A couple of exclusive interviews. Pulse. P on the good morning. Welcome back everybody. The markets this morning. Lets show you what has been going on. Emerging markets are being hit overnight. Dubai,i off 5 per year 5 . Athens, absolutely pummeled samaras after called a snap president ial election. We will watching that story. The markets fluctuate. At one point, down 7 in advance. European equities are trading lower. Underheless, equities are a little bit of pressure. What does it mean if youre a big asset manager . A couple of you exclusive interviews. Blackrock ceo. Theave been speaking about markets in europe. Both spoke about the need for form. Lets start in your. He started by telling markets editor manus cranny about what he has learned in the past three years. When an setting and executing the strategy, the last five or six years of this environment from a macro standpoint of view talk me one thing clearly do not count on it economy or the market. And whatour business you can control. Unfortunately, it plays out every quarter. A very balanced a cautious outlook. That is really something that helped us to really go through the unless do the a lets do the right thing and fix a fundamental part of our business. Rates, you name it. They are not going to go the way you desire them to go. Fix the problems. Theres a possibility that we will lose some of our compensation and the form of the Federal Reserve or the bank of england possibly raising rates. Riskat perhaps the biggest . We have to see how it plays out. Nobody has stopped qe and raised rates. If you have the reverse of the policy that would probably mean we have a big change in the macro picture that we do not expect at this stage and do expected next year of grace and the u. S. To go up. It should not be a shock. Europe, of course, we would like to see the beginning of what the u. S. Has been doing for the last few years. The beginning of a great experiment . , i think i amrope right in this, in your view, not like the qe in the United States . Absolutely. Two fundamentally different systems and underlying structural problems are different. I do not think you eat can resolve the issues on its own. A very powerful tool but eventually if it goes alongside Structural Reforms, fiscal reforms, and reforms that europe needs in order to be successful Going Forward. Al qaedafrom his adventure. Manus cranny joins us now. What was the key tech away . A very long chat. His point was going to 2015, no isolated event. It is coagulation of events. A little bit of liquidity. Quantitative easing disappearing along with Something Like hong kongs riots on the streets. Like the middle east situation. Something like emerging markets beginning to move. Liquidity, we touched on those liquidity could be something. Are going to have to actually pay more money. It is interesting we talked about his structural reform at the bank and i set what was one of the hardest decisions you have to make . You remember the headline, 10,000 jobs to change and a change in nowhere near that. He said it was probably the hardest decision he had to make. He said it was like a reallyioning interesting decommissioning a nuclear bomb. He referred to the change ubs is a nuclear bomb . Change the direction, yeah. Problems andjor they were one with big meetings a lot of unhappy shareholders and change in management. I have myh the ubs, wealth with ubs. Should i fill satisfied he is doing a good job and a safe place to put my money . And whats the message i should be getting from him . I would take it back to what and i and the reported said, you are very cautious about having the right strategy and doing the right thing. I said, make a call. If you look at the footage, is out of my twitter account and and the stock has delivered 75 return since helm. And avery tight Management Group and i had the privilege of meeting a lot of them. And almost halfway through this journey. Deliver. Tinuing to and they have not stepped out of Investment Banking holy. Broad group of issues. You picked up the five minute interview on my twitter and you can pick up the exclusive interview with Sergio Ermotti at the forum. Manus cranny. Another exclusive, larry fink has been speaking about the global outlook. An interview with Erik Schatzker opinion about politicians around the world to enact structural reform. This going have forward because when you have all of these five major Central Banks trying to stabilize a world which we had in the first six years, they did all the work. Low, their job can not have the same impact especially in europe as when we were when we had you know, great volatility and high rates and mismatch between demand and supply in different areas. We now have to unfortunately or fortunately depending on how you dependink about it on politicians to do these reforms to rebuild the global economy. Ast will create instability we are witnessing for the past few years, democracies are as messy as we can remember in our lifetime. Unfortunately, i do not think they will get less messy. So, we are going to see that type of volatility. I am hopeful because of the new leaders of these various countries are talking about reform. They know they need to have reforms to make their economies more competitive who to create jobs and reduce youth unemployment and hope for the middleclass so there than the wage growth. Everyone has the same hopes and desires. It is going to be the exceptional leader who executes that. Right now, i would say president in mexico may be the only democratic leader who is moving down that path of transforming his economy. Hopefully, Prime Minister renzi is going to begin this path of reform he promoted. We talked about labor reforms last week. Theres going to be an election hopefully it validates him to allow him to finally do these reforms necessary and we will witness what happens and the United States and other countries. These are the things that will crater the uncertainty and whether these reform reforms occur or do not occur will really be the juice that determines if my forecasts are right or wrong. Larry fink speaking about uncertainty. In europe. Ncertainty grease once again making headlines. The eurozone economy stagnated. Our will back to get qe from mario draghi . Left out about what it means for the Asset Management industry. Officer andhief richards is with us. Uncertainty. Ann richards is with us. It is not all bad news. Forget that oil price theood and some parts of world. Likewise, the fact that a stronger dollar might push Interest Rates a little higher in the u. S. Is probably good as a backdrop for markets. It is not all bad news. Assets looked very stretched in a number of key areas. Equities are stretched on a cyclical basis. If i look at my bones, well a bonds, well, they have suppressed. Key property markets look pretty inflated as well. Qe, how do i invest in this kind of environment where the price of money may be wrong . That is exactly the right click. The price of money has been manipulated over a period of time. Eight in thed stash 2008 and the starting block is the price of money is not naturally where it would be. Every asset class is going to have some level of distortion in it. Look atu are trying to allocation and where you put your money, what you have to accept is probably not even a low risk. It is just risk. You have to try and build a portfolio that puts in as many different risks as you can access how you get some balance in between all these different risks. When a lot of people and invest, they give you the option or if i want a low risk environment or a high risk environment and i can that more to equities. Of spectrumrt really reflected the reality of what those investors are doing . Think it does anymore. There are different risks erie if you buy government bonds fullywhich are pretty valued or overvalued, you accept a decent risk. That might come back. You have that. You have the fact if we get inflation coming back, you do not have a real level of protection. You have one wrist. On at woody risk, you have to take the fact that volatility is likely to be higher. If you buy good Quality Companies, you are less likely to have a default risk. Even cash into the bank, the possibility of a run on the bank. No matter what you choose, theres a risk and catch to all of it. We talk about building a portfolio to differ risk. Not just shortterm volatility or a proxy. The emerging industry is changing dramatically at the moment and a lot of people are opting for passive. Some outperforming and we can see that in all of the facts coming to us. To pass it. Oing vanguard is dominating as a result and they want to make changes. Do you think the industry is structurally in the right place right now to deal with what you described as a pretty Broad Spectrum of risk . To understand whether i should put my money with a passive fund manager or how i should position myself. Is it a fair understanding of what they should be doing . I think the understanding of the consumer has improved enormously. Clearly, more for that to continue to evolve and education. When you look at the passive decision and people make decisions for different reasons. You go to and to a passive fund. That is pure headline. Fund islem of a passive you get what ever the index and good, Quality Companies and bad, Quality Companies. An asset manager will discriminate. Thank you for joining us. Anne richards. We will take a break. Good morning. You are watching the pulse. I am guy johnson. Industrial production down. The month of october. That fact with output down by 0. 7 . Anticipated. The pound beginning to come under a little bit of pressure. As you can see, a little bit of pressure on the downside for the pound. A spike earlier on the session. Need to know . Ou let me bring the top headlines. The greek Prime Minister has moved up a vote to choose a new president. It will happen next with real all Opposition Party leaders have said they will block samaras pick to force an earlier election. Three failed attempts would trigger a general elect should. And the bailout party leads in the opinion polls. We have the snap general election which could come as early as the new year. Authority has said in a statement that the three top executives will step down. Victoria, are charged with the Communications Director will step down this week. All are members of the spas executive committee. Bernie made off long as employees will do 10 years for running the ponzi scheme. Unit forffs almost 40 years. Break. Ge gave him a not saying he was culpable of his former boss. Going back in time. He did a pretty good job of reducing crime. But he is nothing on israelis Synopsis Company that helps catch a mass murderer and reportedly had a hand. Elliott gotkine has more. Elliott . Thank you, guy. I am joined by the ceo and president. Great to have you with us. First of all, tell us how this technology works. You have video of a missing forklift truck which helps to illustrate how it works. Villa andeo stream the information comes in and what the program does is it struck some of the background and then when you want to see a summary of everything that took place within a long time frame, repositions all of the objects in a very condensed manner. You actually get a summary of objects from different times but all you have to do is pick the one you want. Missing case of the forklift, click on the forklift and you are back to reality which is the original video. It appears like you can watch hours of footage in a few seconds. Correct. In a crowded environment, or your home, a minute or less. Your technology how to capture the Boston Marathon bar where a norm bomber and norwegian mass murderer. Chris we are involved in highprofile cases