we are up and the a tie and year yields are backing up in germany and france. the yields are up three basis points. where were we? a remarkable move in the bond market. coming up, divide and conquer is that the nude tactic? how different is this one from the last? we will prepare -- compare. and then, food fight. jonathan: taking aim at creditors. we're joined from athens with more. who is to blame. greece says they cannot get access to the data. >> they came with the paper and it is unfortunate timing. you have the official saying that and greece comes and it is the imf and the european commission with different agendas. this is the reason it was not brought in the negotiations. they will have the ecb reviewing the program. >> that is the big one. the payment may have been made already. are we expecting anything off of the back of that? >> the system is on life support with the liquidity assistance program. the discontent is a more -- an increase in the number. that will not unplug the life-support. it could be like running on batteries right now. it stands fo

is there something happening in corporate germany? >> we are present a group of more than 40 pension funds in the u.s., working together we have the capability to address some of the concerns we have with german companies. speaking out at the agm is important. things are shifting stewardship and responsible owners of companies are coming to germany. jonathan: fascinating. hans christoph hurt, the hermes equity ownership service director. stewart is still with us. he could've been describing any number of banks across europe, is it a deutsche bank problem? >> it is a general financial services problem. it is an interesting week would be multibillion dollar fine across the different markets. we still don't know what the ultimate end of the game is. the problem with financials is where is the growth coming from? if we see growth coming through in a broader economy, these banks will struggle to really show any sort of forward momentum. we are neutral at best on the banks. jonathan: still to come, the latest on the greek situation. -- gree

vonnie: germany and france agreed to stay in contact with greece. greece needs the bailout money to avoid a faulty the clinton foundation is releasing a list of its fees. the cleanse have been paid $30 million for speeches. hillary clinton stop giving paid speeches when she became a presidential candidate. one third of the speeches were paid for by colleges. the senate may take a final vote today on the fast-track trade bill. the measure would let president obama speed up measures of trade agreements. the senate passed the bill yesterday. democrats are saying it would hurt jobs and wages. a huge selloff is getting the attention of investors in hong kong. three companies lost $35 billion in market value in just two days. regulators are being asked why they didn't step in. the stocks lost 500%. the traders on the chinese mainland can buy and sell shares through an exchange link. anaheim gets an underhand -- upperhand in the western conference finals. the ducks scored a 2-1 victory over the chicago blackhawks. the ducks now have a 2-1 lead in the best-

germany, pretty much dead flat. elsewhere, on the periphery, the italian 10-year with the yield down to 1.8 h%. big moves on the back of this data. china disappointing. eurozone slipping. a lot of data in the u.s. later in this session. look out for that u.s. manufacturing p.m.i. as well. back to you, guy. guy: thank you very much indeed. deutsche bank's leaders are facing their doubters. the annual meeting is taking place in frankfurt. ahead of the meeting, the bank announced they will have direct oversight over the company's new strategy. hans nichols is there. jain has been talking this morning and acknowledged things haven't exactly gone to plan. hans: he talked about legacy litigation costing more than expected and taking time to wind down. he also talked about cost savings, cost cutting being a little more difficult an challenging. the strategy review they announced at the end of april they talked about cutting some 3.5 billion euros. they have not given specifics yet. that is on top of the previous cost-cutti

we have money coming out of germany and u.s. debt as well. if you look at the 10-year money going into the periphery. italian down by some three basis points overall. keep an eye on your bond markets. i would to get into specific stiocks. you talked about iag. up 1% at the moment. after six months of waiting we see the irish government has given the green light to the government stake in aer lingus being bought by iag. it looks like that extra hurdle of getting pushed through has put iag that much higher. this is the retailer. big presence for the united states. the laces for these two companies are meant to be combining up by 1.5%. no news on m&a. investors want to hear it was a more clarity on that deal. u.s. sales looking flat relatively weak, coming in less than expected. they are having to put more money into promotions. they have competition in the u.s. we have the exclusive interview of general holiday -- generale's chief executive. positive economic position and their cash flow looking good as well. back to you guys. jonathan: after a

it was up for germany and down for france. maybe by some companies where it is a cyclical pick up in europe and you will benefit. do not need a cyclical pick up to make an interesting investment story. you have the savings in this merger and i inc. -- think that is a real right now. jonathan: even though you missed out with some of the equities on the m&a side and guessing that is difficult. jean medecin: i am not much for calling m&a baltimore for equity spaces and financial markets because of this built up liquidity and she financing which is -- and chief financing which is supporting. we have also a market which is attracting a lot of interesting ideals and we are one of the largest shareholders. just a lot of compelling stories where you can make money out of the stories and restructuring of those companies and improving a rate without having to take a tough of you on the outlook for the cyclical -- look on the outlook for the cyclical. jonathan: jean medecin thank you for joining us. we will talk luxury. the ceo of luxott

gdp growth is a little bit down in germany. when you look at the eurozone at a whole it is down slightly. it does seem that their investor confidence is being sapped slightly. it is difficult when you have the conflicting numbers. which one do you take? how do you reconcile them? we will get an e pro number pretty soon. -- epo number pretty soon. the animal spirits don't seem to be going that strongly in germany. even though the bundesbank is expecting continued growth. francine: if the animal spirit goes that way, we would not want to argue with that. we are back with former bank of england monetary policy commissioner dame deanne julius. thank you for sticking around. what do you make of greece? there are still to cap's -- two camps. dame julius: i expect the worst, frankly. i think the negotiations had a chance at the beginning to succeed. greece is a small country. it is feasible, in theory. i think the very hard-line stance that they took early on, the finance minister especially . right now they are still refusing to foll

germany is where the concern is. eating into the vodafone market share in germany. in hungary, across the year they are doing well and outside of europe, asia and the middle east and the asia-pacific doing well. italy up 12%. i think the stand out here is data. the data just showing through in the vodafone numbers. 40 in europe, pushing up data growth 18% on the year. jon: when we talk about future growth we are talking acquisitions. i we still talking potential acquisitions here? caroline: they are still keeping their beady eyes, particularly on portugal. here is the key challenge. we're seeing the data appetite ramp up. when you and i are using whatsapp, we are not making calls, how do they make the data pay. it is all about what they deem to be quad pay -- quadplay. but the cable company and deutschland and cable, they want to be able to offer not just mobile but you're fixed line and your broadband and even television their offering tv. i signed up a deal to offer dog -- broadband as well. at the moment they say the big deal they have already made are already do

pimm: hans nichols in dresden, germany. now we want to look at what life is like on the streets of greece these days. unemployment is around 25%. our bloomberg reporter joins us from athens. what is it like to be a greek in greece right now? >> there is discontent and there is fear for what the next day holds. it really depends on what you are looking at because pensioners and civil service -- civil servants have seen their income go down, but if you work in the private sector, things are really hard. we have 1.5 million people unemployed during the last few years. the greek government is in arrears for about 5.5 will euros to its suppliers. if you work in the private sector, you might not get paid at all or not the full amount at the end of the month. the latest research shows some people, around 50%, get paid with a five or six month delay on their wages. describe what it's like for the basic services of the country like garbage collection, water, sewage, things like hospitals and universities. that mucht have trouble in

the developed world, i called my friends in germany and they said, duh. cupybody watches the world with a little bit of embarrassment. we know it is awkward and terrible but it is still amazing. i don't see fans walking out on this at all. barton will stay on with us as we await the results. julie hyman is at the breaking news desk. still ahead, we will bring you the latest on his presidential elections happening today. ♪ betty: welcome back to the bloomberg market day. i'm betty liu. let's get a check on how the markets are trading. oil markets are higher. over 3%, almost 4%. some of this has to do with u.s. stockpiles, speculation that we will be running down our inventories pretty quickly. currency markets, the dollar is also strengthening. week --e week to back-to-back gains. that is what i'm trying to say. stronger against the yen despite that next economic data we got this morning. now a look at the european markets. ryan chilcote has more from london. >> let me give you the lay of the land. as you can see, a sea of red. cac down by 2.4%. continue

i think germany and the u.k. are very attractive stock markets relative to those future policy rates. states, the bonds are very attractive and in their foreign-policy rate is 6% or so and that's going to be difficult to achieve. this type of framework can lead you subjectively to an assessment of value not only in bond markets, but stock markets as well. that?how do you express when i came out to see you in newport beach month ago, you talked about taking the global unconstrained bond fund and putting it into equities -- i took it to mean you were thinking perhaps of m&a arbitrage opportunities. not that you are arbitrage and the u.s. stock market. bill: i think that you can do both. prices are nearing and ending ifterms of the bull market, i told you we were going to have a crash, it does mean to me that we are going to end with a whimper as well as a bang. canhe united states, you sell strangles or sell call against a strong move in the united states. markets that are expected to be stronger, you can follow a

germany, france, less so on the periphery. the markets that had the big rally are the ones getting back to it. the timing was perfect. a lot of people thought, bill that is going to be difficult. we can play the blame game, but i think it is really difficult to pin it on something. there is a debate out there. it could be the end of a big bull market or a short-term correction. there is a hell of a lot of volatility. isn't oil? a lot of people have different views. guy: what is it that spooked the market? the oil market has come up a little bit, but relative -- jonathan: the swing from one extreme all the way to the other with no clear catalyst. it is having a clear impact on the euro. the euro has moved back toward 1.14. that interconnectedness between the bond markets, the euro, the equity markets is very much there this morning. anna: we asked luke pitch more -- hitchmore when she talked about -- when he talked about janet yellen talking about things looking a bit pricey. they are right at some point in the cycle the centra

the smaller companies in germany are complaining about the roads in germany are not where they should be. why is this so difficult? it is something economist like but politicians have trouble with. eric: i'm not sure of the german story. i know they need to increase spending as well. over here, i think it is all about the revenue and where we generate the revenue from. i think there is bipartisan agreement here and the u.s. about what we need to do. but finding the money is the big issue. one of the new things that we are seeing is private investment. for example, we are part of a project that is going to be a higher speed rail project from miami to orlando. that is privately owned and funded to be built over the next couple of years. that is the story we need to see more of here in the u.s. tom: what is your single message to the vice president? eric: he needs to work with congress. the administration is stored with congress to find this funding and get more investment. but also, we would like to see more mobility investment. the u.s. is lyric -- lagging in terms of high-speed rail f

offense, i think germany and the u.k. are very attractive stock markets relative to those future policy rates. i think in the united states, u know, bonds are very attractive relative to that 2.5% rate. and in mexico, their forward policy rate is 6% or so, and that is going to be difficult to achieve. i think this type of framework can lead you subjectively of course, to an assessment of value not only in bond markets, well. stock markets as alix: that was bill gross of january us capital. thanks everyone for watching "bloomberg markets." i am alix steel. have a wonderful rest of the day, and we will see you back here tomorrow. ♪ . . announcer: from our studios in new york city, this is charlie rose. charlie: tonight, we continue our exploration of the magnificent human brain with the look of the neurobiology of parenting. neurobiologists are increasingly beginning to understand the brain's influence on rental behavior. we understand now that the active caring for children can activate special narrow circuitry that form

owning a plethora of brands in germany. there effectively reducing their stake in selling more than 16 million shares and have been placed in an accelerated book building which is seeing some supply-side pressure. jon: those are the stock moves. let's check in on the bond market. we have seen an fx selloff. the recent moves came and got a last 24 hours. yellen warns that in interest-rate hike may send it -- >> when the fed decides it is time to begin raising rates these term premiums could move up and we could see a sharp jump. we are trying, communicate as clearly about our monetary policy so we do not take markets by surprise. jon: as she rings the alarm corporate trying to lock in borrowing costs. the world's biggest company trying to take advantage of the rates and putting 2015 be the biggest year ever for bond issuance. clearly, on a comparative basis we are ahead. i want to bring in the investment director at london and capital. credit markets and corporate rush to issue debt. as an investor should you be wary? >> a l

france and germany are more or less on britain's side. francine: how much does he have to really renegotiate? svenja: the problem is, we have the eurosceptic movement in the u.k. that is increasingly alive to dressing up small changes. he's got to get something. privately he's admitting he won a be seeking big changes. francine: thank you. ahead of the g-7 meeting in dresden, hans nichols sat down with yell university -- yale university professor and nobel prize winner robert shiller. >> my new book is called "irrational exuberance." it is taken from a phrase that alan greenspan used to define the craziness of markets. i think it is very relevant now to finance ministers because we seem to have a bubble in the bond market. on prices are very high, i.e. interest rates are very low. not just short rates, but long rates, going out 30 years. near record lows. that represents a dramatic mispricing. it will eventually be corrected. we have to worry about how the transition will proceed. hans: when we look at the debate we will likely have in dr

it seems to come down to the discourse in germany. especially and number will administration. support for the merkel position ticket greece at any cost. -- especially the envelope merkel administration -- angela merkel administration. job cuts last week but earnings came out of this morning. what we saw was underlined at $8 million. tyinb b -- tying back in is what the market is looking at. the big news with ahold are they in preliminary merger talks? one of the newspapers say that spoken to several sources and no price discussions and it will come down to shareholders which is mainly the family. and will they reach an agreement or work in unison? i want to take you back to the map. i saw this story which i found interesting. the dax, we are waiting for it to un-frost. almost $600 million going to the dax. this is an equity index at a five-year high in terms of valuation. if valuation drop precipitously last month and the valuation, the dax is nearly 6% below that stoxx 600 and money flowing at the fastest rate in nearly a year at the dax. ubs quite likes it. less open doesn't

you heard hints about that in germany last week, mr. schaeuble indicating that he could support that. you have sigmar gabriel, the vice chancellor in the merkel government, and he is saying that a greek exit would be a political problem, not an economic problem. that is very concerning if you are concerned about a greek exit. the more it becomes a consensus view in germany that an exit could be withstood economically, that means the germans have less incentive to keep this project going. they think of it as political matter. there may not be the will especially if there's going to be a third bailout. francine: how much breathing room do greek banks have now? hans: 80 billion is where they are at right now with emergency liquidity assistance. if you look at what their potential collateral for new loans is, according to greek officials, they are up to 95 billion. however, if the european central bank changes the rules on collateral, imposes haircuts that could bring you down to 88 billion. that would be the ceiling. the ecb needs to have

brendan: germany has moved the farthest on this. they have gotten rid of nuclear power which made it very difficult to manage their transition. the wider challenge in europe is moving this electricity from place to place. tom: copenhagen went down in flames. then there's paris. brendan: coming up this fall. this is the argument. can you in a time of low global growth, low inflation can you is to take new regulations new taxes without hurting growth? tom: where are the incentives constructive incentives? alessio: this could be one of the ideas for the eu is to end austerity by doing that you can plan. -- the juncker plan. a large public spending initiative. get job growth if you do targeted public spending towards new infrastructure. that europe needs given the development in russia. brendan: even in germany making the transition to wind and solar. that is a heavy lift. we are going to take a look at photos. in texas, a dam has been fractured after the state received 11 inches of rain earlier this week. officials fear the dam will fl

then it is over to germany at 8:30 a.m. and figures for the eurozone at 9 a.m. anna: coming up, the fed. stay with us on "countdown." ♪ mark: the federal reserve says it is unlikely to raise interest rates in june while leaving open the option of tightening later. let's discuss this and other key economic news with our guest who is a chief economist. good morning. june seems to be off the cards. does that make september the favorite? philip: we think september is the favor. -- favorite. june has been off the cards for a while. in the words of several fed reserve officials, the economic situation is murky. we haven't really emerged for them to start heartening -- tightening. we have had a couple of signs of economic activity, nothing that convincing. on the plus side, we have had better news from housing. sales have disappointed. with any luck we'll have enough clarity. anna: what is the weakness in consumer driven parts of the economy? what do you put that down to? are they emotionally scarred from the financial crisis? is the consumer a different beast? phili

in germany as well. this is the second biggest car market in america. shut off to tesla -- not insignificant. if you look at all the places where teslas are unable to be sold to people that want to buy a tesla car, not only is it not a few places, but they are populous states like michigan, connecticut, arizona. ,hese are significant places places failing to lift the sales bans. that is limiting the ability to sell tesla. messing with texas? the existing dealers in texas have a lot of power in that state. the bill has failed to get any sort of traction. not only are they going to be unable to sell them, they could not even get the bill introduced in both houses in texas, and now they are done for the year. it is the second the auto market, behind california. they spent a lot of money on lobbyists. in the fourth quarter alone, they spent over 150,000 million -- they spent over $150,000 on lobbyists in texas alone. we cannot assume there is no tesla in texas. cory: bears look at this and say, why isn't tes

yields in germany going up once again. 0.3 8% is the yield on the 10 year. the fx market, the euro is taking a dive. the final reading of the pmi through the morning. i will take you to germany later. looking at aussie dollar before the rba rate decision. expectations heading for a fourth the day off losses. up next on this show, we will shift stateside. mcdonald's trying to put gold that the to the golden arches. it may not be that easy. more of their missteps. ♪ jonathan: good morning and welcome back to "on the move." i am jonathan ferro. 30 minutes into the trading day. a picture of the markets. the ftse 100 is close for the bank holiday today. the stoxx 600 also lower. the ftse down. the market moves for you. some of the top stories add to bloomberg. australian regulator found no evidence of misconduct as it looks it to the dollar ahead of the central-bank's decision. the dollar rose ahead of the monetary policy announcement. the net's rba decision is tomorrow and the central-bank is expected to cut rates. a tie investors said he reach an agreement to

starting to see exposure to germany and spain. we don't just want our mobile phones from one company. we want our tv and internet and homeland lines as well. it looks as though the company is turning the corner. they have the intention to grow their dividend per share and that is going to be music to investors' ears. the revenue creeping up 10%. >> it is a return to growth. let's get our attention now back on to greece. is it about to seal a deal? could it be safe from bankruptcy their leaders say they are inches away from an agreement to unlock bail-out funds. varoufakis spoke a lot today. we have heard a lot of this before from varoufakis. hans: it was a remarkable interview. he talked about a referendum. he backed away from this idea of a referendum. he said it would be unfair to greek people and said it is a binary choice. >> if there is referendumming it would be on the euro. i think it would be unfair for greek citizens to have to face such a dilemma and have to answer with a yes or no. hans: there had been a bit of talk abo

the ecb president mario draghi of germany. in france greece's is due to make a 200 million euro interest charge to the imf tomorrow. luxury eyewear maker reported earnings that beat estimates. sales were up 20%, helped by the strong euro tail wind. stay tuned for the exclusive interview with the chief executive later. department of justice is joining ofan investigation from 2012. the probe relates to the last meeting between officials and a global advisor whose reports on details is at the center of the investigation. the total return fund is the largest non-mutal fond following two years. pimco suffered $110 billion from outflows since the longtime manager bill gross left in september 26. you can find more on that story at bloomberg.com/europe. caroline: none other than bill gross is trending on twitter. you can join us on the conversation on twitter. it is also on apple tv as well. give us some of your thoughts. some of the things that are trending today. new guinea also trending after having another earthquake. the fourth e

wade, germany says -- wait, germany says intense work is still needed. and too big to jail banking. graduates follow their dreams are just do not expect a raise for the first, the second, or the third job. good morning, everyone. this is "bloomberg surveillance ." it is friday, may 22. i'm tom keene. joining me, brendan greeley. let's go to the single best chart. brendan: it is a huge deal because what you were when you get out of college, that sticks with you the rest of your life. so we are talking about the cohort and the consequences of that cohort for the rest of their careers. when i say cohort, i mean all of the people in the control room. tom: we're seeing young lads and women in their gowns and they are walking around and you are looking at them like really? brendan: they still

the chancellor of germany speaking right now. of course, a busy week with prime minister cameron and also what is going on in dresden. are they on the same page? brendan: they say very different things publicly. he is more aggressive publicly than she is. but given what has happened, i do not think they are that far off from each other. they are both saying this is not going to work and we need to go back to the original agreement. tom: we will have continuing coverage through the morning from dresden germany, and from zurich, switzerland. jpmorgan with the announcement yesterday, widely expected -- i believe i have been out front on this on retail matters -- that there will be job cuts. 7.7% decline at jpmorgan since 2002. emily glaeser highlighted that in "the wall street journal" this morning. the next step in our new financial system. brendan: i look at that number, and it is very specific jobs that are going -- tellers and mortgage underwriters. what is a bank? it is really definitional -- what is a bank? one thing that is h

is policy rate in germany .5%. normalize, they will have to be the same. between 2.5% is significant from the standpoint of a historical spread. it should not exist. erik: what other relative value type trades appeal to you right now? bill: as one observes and one expect in developed countries and emerging countries for nominal growth rates to come closer together, several observations come out of this. you can observe overvalued stock markets and undervalued stock markets, for instance, germany and the u.k. are very attractive stock markets relative to future policy rates. bonds are very attractive relative to that rate and in mexico, their foreign-policy rate is 6% or so. it's going to be difficult to achieve. framework can lead you subjectively to an assessment of value not only in bond markets that stock markets as well. gross.hat was bill thank you everyone for watching bloomberg market day. i'm alix steel. we will see you back here tomorrow. ♪ emily: local video. --ording to scylla von silicon valley. ♪ i am emily chang, and this is "bloomberg we

germany notes time is running out. number three will buy number two and cable tv, leaving number one at the altar. charter crashes the comcast-time warner wedding. and on america's debt and deficit, peter orszag joins us in this hour. good morning, everyone. cory:this is "bloomberg surveillance." . wewe are live from our world headquarters in new york. i cannot decide what is the bigger story -- greece or this merger, merger, merger. brendan: in greece, there is an out me that we cannot figure out. i guess the best way to look at it is the closer we get to the less good news there is, the more that is actually better. tom: a little bit of focus here in the u.s., but certainly the story continuing in europe will stop let's get to our top headlines with vonnie quinn. vonnie: thank you, tom. the top stories the huge takeover in the cable tv industry. charter communications has agreed to by time warner cable. the deal is worth about $55 billion in cash and docks. charter will pay nearly $196 a share. 14% above time warner

also news just out that germany's finance minister is floating the idea that germany -- excuse me, that greece may need a parallel currency. that would be a cluster. on the corporate front hewlett-packard posted second-quarter earnings. meg whitman's restructuring efforts seem to assuage worries over winning computer cells. what you make of this? >> the view is that this is a cost cut journaling earnings speech than something more prolific for the company. every segment across the board had weak sales growth. currency had a major impact. they are cutting costs and they continue to do so. that is having affect on the bottom line. from a cash flow perspective things are better. if you look at at the underlying performance from a growth perspective, we are not seeing it yet. there is some flashes of growth in industry standard servers. and pc units, vertically on the laptop side. most of the large segments posted declines. that is not a good thing. currency continues to have an impact in amidst all the tron bear going to split the company and two. they are going to have charges as part of

germany does not want it. exit means it no longer becomes a peg a disaster for the rest and it can be broken. what this default mean? people talk about the fault is if there are lots of bonds you can default on. the bonds are tiny. they are tiny. you're talking about imf you can't default the imf. you are talking about loans to germany, france, etc.. there is no need. those loans are very long and low interest-rate. we can see a deal based on three things. extended the maturity. extend them further to 50 years. if you have a big debt, you would be more relaxed. it is very low. we think that increases more sustainable than people think it the interest rate is very low. there is no reason why germany needs to make money on the interest of greece. i think the news reporters are alluding to is the bit of difficulty is they wanted decent primary budget set up either by the pensions or rate reforms. come up with a plan. the surface targets are too tough. bring them down. find a solution. the eu has gone easy on fran

germany reported last week. we saw especially in brazil, we thought increase in average revenue per user which is a measure used in the telco industry. it shows telefonica's strategy to offer higher-level products may be working. francine: profit seem to the overestimated. what is that down to, low estimates? rodrigo: they did not do that much better than expected. there are a few things that helped, but it was not over the estimates in the sense it blew everybody's head away. guy: ig guess the big question -- the sector has had so much m&a. what happens next? does the repositioning of this business continue? do they like what they have? how much more is yet to come? rodrigo: some of their latest deals have to do it two things. one is convergence that is happening with spain with the acquisition of a pay tv broadcaster which gives them a huge control over the market, 85% of the market in spain. convergence happening in brazil. the question is what will they do in germany? they need another strategy in germany. a

the question is, public opinion in germany. some within her own party no that public opinion is turning around. mark: let's talk elections. the u.k. variety. it took many by surprise. the pound had its biggest daily gain. volatility falling on friday. 44% drop. hence, what does this mean as we approach the next big event? the eu referendum. whether it is one year or two years away. have: -->> guest: when you look into movements in currencies over a. of one or two months, i it is dominated by money markets. this applies especially in the case of sterling. the flows are moving in the right direction. it has been week for several quarters. guild flows have been weaker. the money market is holding up sterling. the money market depends on consumption in the country. that does not look too bad. when you look at what is now happening in the housing market, or what is now going to happen in the business indicator whether this relief affect will come through economic policies. will it stay more business friendly. it will create a lift i

david, where is germany and all of this. chancellor angela merkel says that greece needs to take or at least stick to the austerity of it made in the prior governments before alexis tsipras took power and that greece could not continue to rely on international creditors, including germany, to keep pumping money into it if it was not going to make the needed structural reforms. what has germany been saying about this as of late? extent, when he speaks with two voices. there's the finance minister, who has been the hardline voice. merkel has ala shehtly softer stance and is really committed to keeping the euro together. -- concessions from greece, but she's probably a bit more willing to compromise than before -- than the finance minister. at the end of the day, she will be calling the shots. mark: our investors seeing chances for resolution, or do they think greece night -- might in fact default? david: if you look at bond yields or the media, clearly people are worrying about increasing possibility of a great default. realit

from germany to hong kong to new zealand. now the target of the biggest copyright case in history, accused of trafficking pirated movies and tv shows as he awaits an extradition hearing to decide his fate. joining me on this special edition of "studio 1.0" from auckland, new zealand, megaupload founder and self-proclaimed ruler of the kimpire, kim dotcom. thanks for joining us it has been a year since you have spoken publically. you have been under house arrest. what are the rules now? where can't you go. kim: i am not allowed to leave the country. i have to report to the police twice a week. emily: you had your freedom until the raid. take me back to the day of the raid. kim: 72 cops, heavily armed with assault rifles, storming the property. some of them arriving in helicopters, some of them arriving with attack dogs. completely bizarre scene. my staff and i had to lie with their face the ground, guns pointed at them. my little kids crying because they were scared. my wife separated from the children. when they got to meet,

you're looking at yields in germany now it .68%. that is nearly 12 times what they were three weeks ago. anna: you're looking at a live shot of the city of london. equity markets are due to open up in 11 minutes' time. a little sluggish at the start of equity trade. down by .4 of 1%. more on what is driving the markets when we come back. ♪ anna: welcome back. equities set to start trading in a few minutes time. caroline is here. through-line: it could be down but overall it was a beat when you look at profitability. in more than 150 markets. the fourth biggest brewer. they are still feeling the pressure in russia. there up -- they have a new chief executive taking the reins. it is official. a dutch-belgian combination. they confirmed they are in preliminary talks. there is -- there may not be a result but they are exploring the opportunity to combine together and have more than 6000 stores. it would be having one he 5 billion euros worth of company value if you add the two together. this is a company that could start building pres

is the largest destination for foreign investment in germany. there are 450,000 jobs directly employed by german companies in the u.k.. they like to do business here. they like to invest in the united kingdom. the possibility changes that dynamic. as any business would do, it's going to try and look after its own interest. there is change here. i think this -- businesses look for the responsibility to make up the case. francine: what is the case? what do you tell the british citizens to make sure that were we to have a referendum vote the outcome would be for the u.k. to stay in the eu? guest: the u.k. has been the destination of choice for overseas investment. it's not just german companies. if the u.k. were to leave that's not going to change overnight. it does make the united kingdom a lot less attractive and a lot less competitive. why would you if you were airbus consider decades worth of future investment if the u.k. is on the outside of of the single market and the trading block? it's going to be necessary for companies and look closely a

>> this started in germany. that is it. the bond tantrum spread worldwide. and talkingn it about it, it is a worldwide phenomenon. pointsu move 60 basis to 60e 10 year treasury basis points. any economics that made a decision two weeks ago that made it difficult. alix: u.s. treasury yields are 2.3%. the 10 year0.7% on in germany, even after the catch him, as david called it. yield,till a high especially if the dollar will not lose much failure. a lot of central banks are coming in, flooding the option that just took place. could see had a second piece. you look at the american market. at fourgraded are tax-free. the 30 year treasury is at three. the last i checked, you pay taxes on the income in the forsury, and did not pay 100 basis higher. valuationabout metrics we're used to. it is volatility. what does that do for risky assets? >> if you are in singapore and you have to deploy sovereign fund -- plunges around the world, the united states of america is a great choice at the highest relative yields. you have got to own some of them. if you're in america an

from germany to hong kong to new zealand. now he is the target of the biggest copyright case in history, accused of trafficking pirated music, movies, and tv shows as he awaits an extradition hearing to decide his fate. joining me on this special edition of "studio 1.0" from auckland, new zealand, megaupload founder and self-proclaimed ruler of the kimpire, kim dotcom. kim, thanks for joining us. kim: hello. emily: it has been a year since you have spoken publically. you have been under house arrest. what are the rules now? where can can you not go? kim: i am not allowed to leave the country. i have to report to the police twice a week that i am still here. emily: you had your freedom until the raid. right? take me back to the day of the raid. kim: 72 cops, heavily armed with assault rifles, storming the property. some of them arriving in helicopters. some of them arriving with attack dogs. completely bizarre scene. my staff had to lie with their face the ground, guns pointed at them. my little kids crying because they were s

you have built data centers in germany, france, the u.k. will you have to have one in every important country? marc: oh yeah, you're going to have to have one in every important country, but it's not because of that, it's another reason. because the cloud is going mainstream, every president of every country wants to have their own cloud. i was just in germany. i was with angela merkel. she wants the german cloud. i was with francois hollande in france. he wants the french cloud. abe wants the japan cloud, you know? cameron wants the u.k. cloud. emily: you are the cloud maker. marc: you know what. they should have one. they should have their own clouds. i'm all for that. and for every important country in the world, they will have their own clouds. they will all interoperate, if that's what they want as well, or they can just have their own local versions. it's whatever they want. that is my job. emily: how does that work from a security and privacy perspective? marc: well, from a security and privacy perspective, you know, we are using the

he doesn't need to focus on germany. just as well, because the ruling body in europe doesn't like sepp blatter. sepp blatter focuses on the smaller nations, the cayman islands. these nations have thousands of inhabitants. brazil has 200 million. that's why bladder has focused on this nomination. that's why blatter is favorite to win today. the ruling body in europe said it should boycott the election. it said the election should be suspended. they decided they would take this opportunity to force change from within. caroline: all about tactics. you've spoken to a number of high-ranking officials. give us a sense of the mood in zurich. manus: we -- mark: we've spoken to a lot of officials. we've spoken to the head of the italian football association german, dutch, barbados, palestine. we tried to get as much sound for you as possible. it is shock and horror after the indictment by the u.s. department of justice. some of the allegations are absolutely astonishing. bags in paris hotels stashed with $10,000 piles. here's wha

yields are abruptly higher in germany. a chief executive of kbw, a. lisa abramowicz is the chief executive officer of the bond desk at bloomberg. lisa let me start with attention idea. are you using the word tantrum in your stores? lisa: no not unless i'm talking about my children. the first question you have is why. why have global bonds lost $340 billion? people are not sure. one analyst called this the wrong kind of rout. this is not driven by inflation expectations coming up in the u.s. and the u.s. leading the rest of the world. this is led by europe, which does not make sense. tom: i will go with a pick brendan: -- brendan: is it led by oil? lisa: you saw the u.s. selloff followed directly by -- after the worst route in euro area bonds. tom: is this about a better america, or is the bond market getting out ahead of better gdp? >> i think it is macro issues. i think quantitative easing causes these disruptions to happen. when you have an opinion that the government is going to head in one direction with policy, you have a chance to get overly con

germany has no energy. in the beginning of march we made this a good suite. we exited all of the exporters. >> we are to take a short break. what do you think of banks? it is a bright and beautiful day out there. futures in london indicated up. the rest of europe coming to unchanged. futures have indicated slightly higher across an equity benchmark. stay with us. ♪ >> thanks for joining us. a lot of italian banks have already outperformed the industry. >> if you look at italian banks, they are trading on 0.9 times. the economy is just turning around. i think the banks will go to low double digits. they should be trading at a significant premium. >> you are talking about emerging markets as things that will come back. talk us through it. >> we're hearing that emerging markets have done terribly for years in a row. they are clearly uncrowded. a lot of them have left emerging markets over two years. they are an interesting area to be an. we like china. we like india. as an asset class it is for all these reasons. >> can emerging markets cope with such a move?

here in germany, you are hearing an emergency consensus. wolfgang schauble talked about how the blame was squarely with the greeks. if greece wants to compromise if citrus -- tsipras wants to cut a deal, it is up to the greeks. the germans do not want to go any further. varoufakis seemed to be blaming greece -- germans for their overly-generous pension system. it does not look like there will be any give him the imf will either. caroline: clearly, varoufakis is talking tough it what about tsi pras? does he have the mandate to get this through? hans: a status check on how they have done recently, a big, long meeting. remember, syriza has a 12-vote margin in the 300-seat parliament. the vote was to say, do you want to default on payments or stay true to our principles and not compromise? the vote failed by a count of 95-75. that means there are 75 within the greek parliament that do not want to compromise the principles, even if it means defaulting to the imf. this is going to be center stage at the finance ministers meeting that takes place

in germany, it is nothing like the nostalgia here. brendan: an academic historian actually spoke at the boneund entag and said we must remember this forever. this is part of their negotiations with greece right now. lakshman: absolutely. so you have the history, and then you have the pressures of the moment and in the pressures of the moment there is obviously the political exercise of a unified europe, and then there is debt right? we have more debt today floating around than we have had in all of human history, and it is starting to weigh on nations. there is no easy way out of it if you look at the map. a certain amount of growth is needed to handle -- you need growth and inflation to handle debt. we are hurting on growth and inflation, so there is a lot of pressure. brendan: and of course the word debt in germany is interchangeable with the word "guilt." lakshman: well done. [laughs] olivia: as we had to break, our twitter question of the day, we ask you -- how do you define full employment? tweet us @bsurveillance. ♪ tom: good

france and germany are warning greece it is time to get serious about its debt crisis. we did not just cut and paste that headline. finance ministers are meeting in dresden, germany today, denying claims that a bailout deal is near. rick officials said they are close to an agreement. the country needs more money by next week to pay back an imf loan. one prominent economist says there will be dire consequences if the crisis is not resolved soon. >> it could lead to a story that is destabilizing and runs on other financial institutions. the original greek story should not have involved italy, spain and portugal but it did because of assumptions people were making. olivia: the european central bank agrees saying eurozone bond deals -- bond yields could rise. erik: u.s. oil is holding at its lowest level in a month. about $57 per barrel. next week, opec meets indiana so we may get another -- meet in vienna so we may get another surprise. michael cohen is head of commodity -- commodities research. i have not heard one person say, speculate that opec is going to do anything i

you have seen record lows from france, italy, spain, germany. eventually you get to weigh risk that you get two-way risk. this is the second point and the important one. the debate going on globally right now.remember the back drop to the yields? the idea investors would accept a ridiculously low yield because they didn't think the deflation -- oil rebounds. data picks up.those two things and into inflation expectations picking up. this is the reflection a lot of people were waiting for. this could go on for years. that could speak to the idea that the bull market in bonds is over. the debate on that right now is really strong. betty: it is very very strong and hot. thank you so much. i grace synopsis of what has happened and why there is this debate. back to one of the big company stories, it is alibaba. the management shakeup their eclipsing somewhat the earnings news. daniel zhang was named the new ceo am a replacing jonathan lu. this is on some of the earnings that came out. revenue beating wall street estimates. i am joined now. is this a c

capacity into germany. they cannot -- [indiscernible] kathryn bank richard, thank you. at 10:00 a.m. exclusive interview with the ryanair ceo. -- francine: richard, thank you. guy: the twitter question of the day. let us know. ♪ guy: a couple of days away from the election. the campaign trail. a critical part of this election and they want to make it look nice and relax and of here are the leaders are interacting with the general public. francine: just like everybody else. guy: the year of the selfie. guest: they want it to appear like that. the selfie part, they're almost encouraging it. i was at an event with admin clad a was talking about a selfie. they can look like it is natural. -- i was at an event with a nick clegg and he was talking about a selfie. francine: do they choose the people? chris: they will say, shall we have a selfie? they know it looks nice like they are connected with the people. francine: was the most accessible? chris: probably -- they are getting kudos by saying we will talk to t

obviously, it goes on to germany and the french president. there is a meeting of leaders with month and make is plenty of opportunities to set out what they are trying to achieve. >> how likely is cameron to get what he wants. >> we know he is looking for reform. he is not looking to change. what he wants to achieve is the party hopeful. change is not likely to happen. we may get negotiations that say change is possible in the future. you for joining us. we have this election and do you think that will continue? >> will create uncertainty never good for investment. they can slow down some of the potential. we could see it and the 250 is a driver. the dollar is stronger and giving earnings for the ftse 100 the bode well. we do think it is to the upside and it is more so than the domestic story. jonathan: the immediate discussion was ok. do you stare that -- sure that? >> the market viewed the benefits and the pro-business framework. the options expired and the cost of hedging should be held. the chances of it moving in this matter are aware so

i spoke to national leading figures from holland, germany, israel, palestine, barbados. here is what they had to say about sepp blatter. >> a disaster like this we never had in life before and there's only one chance. we need a change. a change means that we have to vote for prince ali. >> after all this, what happened in the last 10-20 years, and now again, we cannot just say, i had nothing to do with it. >> blatter has been there for a long time. it is hard to believe that he didn't have some suspicion that something was going on. >> giving away the tv rights for one dollar to an airline in exchange of a vote, it is serious mismanagement. >> for all the labeling that sepp blatter wears, there's never been any hard evidence that sepp blatter is corrupt or that he ever took bribes. what happened is that a lot of other people did that during his governance. that's where he's been labeled with this stuff now for just about the rest of his life. >> if it is true what i read in the newspapers, that $10 million has been remitted, don't tell me that the executive president of

across germany and other places in northern europe. really it turns vodafone into this european center, quadruple play telecom. guy: people have talked about vodafone scype, transactions like that. it would keep them in the t.m.t. space. they don't really become a media company. >> that is exactly right. i think there is still a philosophical debate. whether content is king or whether it is not, we're both old enough to remember when it was king. now some people think it is king again. vodafone has been pretty reluctant to play that game. my bet would be vodafone wants to stay as a networks player, truly a telecom company. as you say, a deal with liberty would mean closing the door on a big content strategy. guy: matt campbell joining us. i want to explain the banana thing. you keep the banana in a jar but you to figure out how the get your banana and your hand out. marks and spencers plans a share buy back. we'll break down the numbers after the break. ♪ guy: welcome back. you're watching "the pulse" live from london's headquarters.