>> of the historic when -- this historic win. >> the finance ministry says the agreements remain valid will stop -- valid. >> he meetings this morning as the party works to build a coalition. >> welcome to the polls. i am francine.

>> we are live in athens. >> we are getting some breaking news from germany. they are breaking in with an expected. in terms of assessment, we are expecting 110, in terms of business climate. we are also trying to deal with the greek question. overall, current assessment is much better than expected for the month of january. the coalition for greece and a challenge for europe. the vote leaves in two seats with a mandate to build a coalition dedicated to ending austerity. guy johnson is on the ground.

this is a historical vote. >> it is. the vote has gone as anticipated. he did a little better than anticipated. this morning, in athens, there is a conversation taking place between them and the independent greeks. nobody saw this as a central case. they are towards the right-hand side of the political fringe and anti-austerity and very much taking the line that they want to see a hard negotiation with the troika. that is the reason the markets are down. a fascinating story is emerging. maybe not the one that most had planned for. >> can they form a government? >> they are talking about

wednesday being the date we get this done. it will be an intense few hours before we get there. meetings will take place. they are talking to the party that got into power. if that is the story we end up with, the signal will be more relaxed. prepared to compromise and two may be negotiated and take a more sophisticated line as some would say, with the negotiations. a key 24 hours is taking place and it will be interesting to see if he decides that he can go alone. he could go alone. he got very close and may decide that is the route he wants to go. >> this has been an anti-austerity vote. how bad are conditions on the

ground? >> the conditions are bad and greece has really suffered over the last five years and they are making it clear the number one priority is to get them back into jobs and it has been tough for the greek people. what we saw is a reflection and the need for change. the question is, can they make that economically work? the passwords are really difficult to deal with. you could see a real reversal of the on the employment shrug sure when it comes to the state and to change the tax story, as well. let's get the review.

she joins us now. good morning to you. a little bit of a surprise for independent greece. nobody expected them. >> clearly, if he does not get a full majority, they asked if he is going to in gauge. he says that it is very much in favor of what is going on and in favor of the troika. they want to make it look at her and do not want to change things. they will be talking with the natural left party the extreme left and the real radical left. >> what message is he sending if he does that? >> he is setting a serious message.

the economy is first in the ideology is second. there is a strong point of view about the nation and how -- they are rather right-wing. >> right, the fringes start to meet. >> we will continue to exist if there is the possibility for us to have a sustainable way of surviving economically. we have a marriage of most convenience. we get to have a sustainable way of getting through and you will see the ideologies fighting with each other. >> that is further down the road . everybody i talked to -- i just came from data posts -- davos.

they expected him to make a u-turn. once i am not expecting it. imagine you are 40 years old and have never thought that he would become the prime minister of the country. he was leading a party. a coalition of voices that would enter into parliament with 3-4%. now, he finally has the golden opportunity to prove himself and it is true that there has been leaders in 2012 and they voted in the same way. he has promised the exact same thing around what has been promised and that he would completely go and change everything. no one was talking to him and everybody is saying they do not want to talk to him. we forgot that he had this as a campaign and he continues with

the commission. there is a consistency with the voting and, i think, what does he have to lose? he will go back to the 3%. here is the possibility for him to make something. but it is a big day. you used to run this place and have before. >> they put it into ruins. precisely. from my experience, as an economist and 3-4 countries under crisis. there is no way a country can get out of the ruins by the same party that put it in the ruins. we tried to prove there would be a time this happened and it did not. >> you look at the economic policies he has suggested. do you think they are fully formed?

>> i am not sure if they are. the previous party was definitely not. it was literally like driving on a one-way road that did not have the ends to it and we were not going anywhere. may be, in macroeconomic terms, things look better. we talking about people not having any savings. it is interesting to talk to people like myself. the greeks were taxed for properties in greece and the majority of the greeks are almost as many in greece and have been doing capital inflow to pay for the taxes.

it is interesting to see that we have taxed savings. >> he talked about it last night. you look at the economics and we are in a situation where the message has been sent and it is clear that he will stick to the line. it also says are those two ideas reconcilable? >> there is no way to get out unless there is a big call from the people. >> technically we can default within the euro. we can default within the euro. it is important to notice that the european union is imploding

and greece is a canary in the coal mine. we need to learn from what is happening in the country. the austerity measures are good. they are not appropriate when you have a crisis that is related to the productive model and the model is backwards. you have to reform labor markets and deregulate all of the markets to allow for innovation and for freedom of more investment. all of our lungs -- youngsters in greece innovate. how good is that further country or europe? >> maybe we can change that. >> the ceo of group thought for action. interesting thoughts. i have to say.

maybe we'll see action. i will be back. act to you. >> we will see if he governs as a pragmatist. that brings us to the twitter question. is this the beginning of the end of austerity in europe? let's go from greece to germany. let's get straight to hans nichols. for the moment, they are playing hardball. it is remarkably consistent. the agreement reached with greece is valid. members of the parliament basically repeated that. a few minutes ago, someone on local broadcast the papers had

something similar. here is what he had to say to the public broadcaster. i believe it is in the interest of the greek government to do what is necessary to tackle structural problems. that is a top tanker channeling the public view on this. the public opposes restructuring and that will likely be on the table today. the finance minister meets and the minister of france has hinted that he favors restructuring. most seem to be on the same page. no restructuring and no haircut. >> the very latest. it is a little bit like a chess game. third times's the charm.

we are back with the details of the developing story. we are back in greece. what is on the agenda? >> plenty to come. we are watching the political situation very carefully and speaking to a leader from the party. will they be part of the government? we will be speaking to the chamber of commerce. all of that is coming up shortly.

>> welcome back. let's get back to the top story. the greek elections. the anti-austerity has won. what does this mean for the eurozone? what welcome michael. with us is guy johnson on the ground in athens. great to have you on the program. thank you for coming in. we'll have to wait to see if he becomes more pragmatic or if the fighting talks continue. given that we do not know if the talks will continue, how certain are you.

>> it is a different stage than the first crisis of stop in the first crisis, the assumption was , who is the second country to go into the program. now, the country has shown that. i do not think the automatic contagion is here and you see the market reaction this morning. it has not grown weaker stop european fixed income and others have gone up and i think the market is going to correctly state the crisis in the situation for a lot of uncertainty in the country and because of the action and the vote with the other countries that are better protected than before. >> michael, let me jump in and

talk a little bit about that and explore issues. it is interesting that you talk about the fact that the contagion may not be a problem. look at the political story. it is interesting to sit in the square and see a lot of spanish and italians. the have really alive themselves closely. in spain, they are running number one in the electoral story. if they can make it work in athens and greece, that may change the dynamic significantly. >> my point would be that i hope that it will work and we will have a good situation for the economy and for the people. at the moment, i really believe that, because of the financing

needs of the banks and the official sector that comes up this year that a good solution can only be achieved in a cooperative fashion by european institutions. i think a good outcome would not set a negative precedent for any country. i cannot see going it alone to be. effective. i am not worried about the political spillover. >> you think he will be more pragmatic, rather than rebellious and radical. do think that germany and the rest of europe will have to give in? >> i think both sides will make a step towards each other and that from my expected -- perspective, it is more on the greece side and it will have to be a step for greece.

>> give us a sense of how you are changing your portfolio. you did not think this would happen. so, how does it change the way you view your investments? >> we have different teams and we argue that we believe that it should come and it is an interesting side note. i am a german citizen and germans are known to be critical. i am quite happy that we have shown the world that we have all of the modern tools that other banks have and you could argue that we are a bit late. i would argue it is important that we haven't and -- that we have it and it will help risk premiums to stay controlled for the next crisis. it is important.

>> is there a possibility the authorities in europe underestimated the potential for greece to cause trouble? everybody thinks he will perform a u-turn. we may have mechanisms in place to make sure we do not get a major liquidity crisis in the rest of the eurozone. if you think about the way the political their deuce are developing this morning, is there a danger? is the danger going up? >> i would be a huge investor and get a bit more nervous. i think that it has not played out the way it expected. there may be an outright majority. maybe the market is expected

with a more moderate coalition. maybe there are some rumors and if you are an investor and you see the markets you should be a little bit more nervous. i think, if you are a european investor, you look at the loan and the long end. they are up in price and down. we are concerned. >> does the negative yield environment change anything? >> the negative yield environment is a big problem for many of our clients. investors are in low risks and i think it means that you have to become more active for

opportunities and finding solutions. there are so many things happening in the market and, speaking as an active manager, those are opportunities to make a difference. >> thank you so much. we are back in a couple of minutes.

>> welcome back to the polls. let's have a quick look at what the stock exchange is doing.

>> welcome back to "the pulse." we're just getting some breaking news out of athens. we are hearing from the party leader of the and dependent greek party syriza. >> this is the outcome that nobody expected during this is going to rattle a lot of people's nerves there in the leader of the independent greeks was just on great television talking about the announcement

we made it. the two marty's -- parties will form a coalition government. this is the left field outcome but nobody was talking about. there were people discussing it last night. people were throwing around the idea. actually, the world has got this wrong. this was always a definite possibility. this was a consistent outcome that was being delivered as a message. we've heard from the independent greeks. there was a bit of a surprise that they got in. the meeting that took place and just finished up a few minutes ago they are making comments. i think this is going to surprise a lot of people that this is the outcome we are ending up with her people are going to be very nervous about what this is ultimately going to deliver for greece.

this sends a strong message to the eurogroup that greece is going to negotiate very hard and deliver a tough message from athens to brussels and berlin. this is a country that wants to negotiate an incredibly strong. that was the message we got last night. we have had five years. we haven't made any progress in we're going to change the narrative area we have not seen a different party since 1974. this coalition cements the idea that alexis tsipras is not going to perform the u-turn people were talking about. >> there is just governing as a pragmatist. this puts this into question. the independent greeks are anti-a lot. they are center-right.

they are still basically on the right. how do these parties coexist? "the pulse it's>> it's going to be fascinating to see that. alexis tsipras does not need the independent greeks that much. there has been summit meeting of minds to make this happen. one is from the left and one is from the right. at some point, the political spectrum meets again and maybe they can find some common ground. people will look at those nervously. how stable this will ultimately be? how long will this coalition last? the outcome that nobody expected on the outside.

people here are telling me it's not quite such a big surprise. >> thank you so much, guy johnson. we will have more. we are going to take a quick rate. we will be back live in athens to discuss what this coalition means for the european union and for germany. ♪

>> good morning. welcome back. it you are watching "the pulse." we are live from athens. the political temperature has been rising the last few minutes. syriza and the independent greeks are forming a coalition government. very few people expected this as a possible outcome. very few people thought the and dependent would get into parliament. what are the applications? the business community will be stretching its head as well trying to figure out what this means for their company and for their country. let's to walk -- talk to one of those figures in the greek business community. he is the chairman and ceo of

one of the biggest companies in greece. people were expecting a more moderate start from syriza. maybe we are not going to get that? >> there is always a drama in greek elections. i remember many elections ago that is greek drama. it is not the reality. greece has deep roots in democracy. there is no danger. >> this is more aristophanes? >>a lot of people in the outside world will be surprised that this is the coalition forming. it sending a very clear message that we are going to negotiate hard.

>> there is no doubt it will be a hard negotiation. the outgoing government tried to do a good job. they may be did not complete the reforms that they should have undertaken. on the other hand, this came at a big social cost. this will have a political price. >> what would you like to see happen now with the policies coming out of this new government? what do you need to hear? >> let's look at what happened to the elections. two things, we have had a calm pre-election. and we did not have any issues of foreign policy raised during this election. this is the first time it.

almost all parties agree on the main lines of foreign policy nato, the european union. more than 80% of the voters have wanted to stay in the euro. that is a very clear message to alexis tsipras and it has to be taken seriously into a cap and there are very few greeks who want out of the euro. >> a relatively new party where the leader has no aspirations to become prime minister. we have broken a time in which to parties ruled. this is a very unstable time. >> there is always danger in politics. let's look at the positive side of things. forget the greek,. the positive side is there is

new government and a new kind of strength in europe. there is opposition of pro-european, center-right opposition. if we have a stable government here and we have a four year term that gives it political stability, that may be followed by a pro-european right-wing it government. that means eight years of political stability. greece is going to be a leader in the next few years. why not look at the positive scenario? >> he wants to fix the unemployment story. he wants to get people back to work or in what the you need to get from the government in terms of policy? is it reducing the burden of employing people? what do you need to get in order to fulfill that ambition of adding people back to work?

>> you need political stability. you have direct investment. public investment, there is no money to do it. all that's left is political stability. that is relatively cheap and it can happen. the eurogroup has said that when greece gets established with the budget, we will talk about that. -- debt. let's talk a little bit about this. a restructuring would tell a lot. >> if he can deliver that, is that enough to keep the political stability story there? he has formed a government of two parties that want to negotiate quite hard.

when anything short of a haircut satisfy coalition and create the political stability you are talking about? >> a haircut can mean many things. it can be long-term interest rates. it can be a grace. what is a haircut? it's got to be a logical, reasonable compromise for everybody. the greeks themselves don't want to leave the euro. >> you talked to the banking community. one thing that does seem to make people nervous is the outflow from the banking system. when you talk about your colleagues in the banking industry, is this where the story could unravel?

could there be a liquidity crisis? >> that is up to the new government. there is nothing to worry about. the banking system is solid. it's up to the ecb to give signs to people that the bank is safe. there is nothing to worry about. >> do we need that from the ecb? we will protect your banking system? >> it's going to play a very crucial role after the elections. >> interesting conversation there are some things that still need to be figured out. thank you very much for joining us. thanks for -- things are moving really fast. we have a new government. it's one very few people predicted. back to you. >> what it means were

negotiations with the eu we are still trying to figure out or it --. russia's currency is losing strength. russia is under pressure again. give us a sense of what the current move in the ruble means in the far wider implications? >> it is down 3%. it's trading just shy of 66 rubles to the dollar. that is where it was two weeks ago. it entered into a. of stability. that was the worst it had been in over a month area the ruble is under more pressure than at any point in the last six weeks area crude is down. wti is under $45 a barrel. that does not explain all of it. there is new concern about fresh sanctions against russia on the back of those shelling attacks

we saw 30 people were killed over the weekend. >> fighting has intensified. how likely is it that the u.s. will impose extra hard sanctions on russia to mark --? >> we are more likely to see new sanctions at any point since new sanctions were introduced. just a couple of weeks ago, people were talking about the need to roll back sanctions. it created to devastating of an economic picture in russia and people were worried about punishing the russians on the street. we heard from one german politician who said if we have hard facts that the russian rebels are behind this shelling over the weekend, if we have hard facts that this is part of a larger offensive that they are

engaging in and if we can through that russia is behind this, we have no other choice. obama was in india and he has the proof. he indicated that he would support -- that is dash cam footage -- he had one qualification. foreign ministers meet on thursday. that is the day to watch. >> thank you so much. his the third time the charm for aig? the takeover could be evident. that story is coming up next. you can follow both guy and i on twitter. guy is on the ground in athens.

we will see you in just a couple of minutes. ♪

>> welcome back to "the pulse pickup --." we've also had some big stories. the parent company of british airways has made a bid to take over air lucas.

this is the third attempt since first approaching the irish carrier a month ago. whether this deal will go through, great to have you on the program. does this offer mean we are closer to the deal? >> definitely a step in the right direction. the board is considered it. it is a proposal. the first two proposals they were dismissed. this they are at least considering. they did make the point that they would want to have both the government and someone on board. the offer is two years, 50 in cash and a five cent dividend. that values a little bit more than 1.3 billion euros.

that is a healthy offer on the table. >> this is the third offer. it seems like they are convinced that aer lingus has growth opportunity. >> he was a pilot at aer lingus. he wasn't one time the ceo. he seems to think that this is going to fit into the package. it's a group of airlines. where does aer lingus fit in? they have a significant number of slots. they also have a primary position in dublin and offer a lot of transatlantic routes. heathrow has no option for growth. they can't at a runway. dublin could be your third runway. >> what are the chances of the government excepting this offer? >> that is the million-dollar

question. he is open to it. he is trying to sell it to everybody. the price is right. it's an option he sees as aer lingus hitting into a broader area company and sitting in somewhere and not going it alone in terms of the government. that is such a political question. the opposition party says we need to be concerned about this. we need to protect the domestic routes to heathrow. this is going to turn into a political debate. they have an election next year. >> the government wants an industrial planet. >> that's probably a fair way to put it. >> thank you so much for all of that. we will have terry lundgren throughout the morning.

for our viewers, a second hour of "the pulse" is coming up. we heard about this coalition. the new government will be anti-bailout, is that a fair assessment? >> that is a very fair assessment. there is a lot of shock that this the direction of travel. this is a party that is consistently wants to negotiate hard with the troika to get some sort of serious reduction for the greeks and the debt burden label. it sends a clear message to rustles up to berlin that there will not be the u-turn that some people had anticipated. you and i had the conversations time and time again with people suggesting there would be a u-turn. he would find a way of making that u-turn work. this morning, the news is maybe he is in france. >> maybe it's a tough

negotiation tactic. maybe he is out front of everyone and putting pressure on germany. >> the strategists within the party are trying to figure out what the best strategy is going to be. the independent creeks of already said they are going to back them. this probably says they are in this for the medium. political instability they are not going to be with the independent rates for short time and then a breakup. you don't look that instability. they have formed the government with them suggest this is not a negotiating tactic. this is the line that syriza is going to go with. alexis tsipras once the eurozone to blink.

will it? >> we are trying to gauge with the response will be from germany. they were very hard saying there will be no renegotiation. they may change when a see the reality of the new coalition. there is a political story inside reese area -- greece. a lot of italians were at the rally yesterday. >> they were. a lot of spanish were there last night. it has been confirmed that he is going to be the new finance minister. he was talking through the options. he is a man who will negotiate fairly hard he did not talk about an absolute haircut, a debt reduction being the only

way to go. >> guy, the coverage continues on radio and on tv. you can tweet us. ♪

>> shock in athens. >> germany stays firm. the agreements reached with greece remain valid. >> come in up later today they form a coalition. we will look at the political fallout for the rest of europe. while wall wall on>> good morning

and welcome to athens in you are watching "the pulse." we're watching the fallout from a coalition that no one acted. -- expected to >> coalition for greece and a challenge to europe. alexis tsipras wins and distort victory. let's get back to guy johnson. he is on the ground in athens with the very latest. in terms of how quickly they can form a government, we have a coalition that is not what people were expecting. it's so anti-bailout. >> it certainly is a big surprise for everybody. i would like to make a quick correction. we said they may be forming a

new finance minister. that has yet to be confirmed yet. i can say that he is going to be joining us a little but later on the program. it is a little bit of a break and communications. we apologize for that. he could be one of the key architects of the strategy for syriza moving forward. a real surprise from a whole load of people inside and outside greece. very few people expected the independent greeks to get in to parliament. they are in power. >> break it down. i think it's quite early to see exactly how they will end up. the greek independence are anti-bailout. they are much more right wing then syriza. because they needed such a small number of votes to win an

outright majority how much will they listen to their junior coalition partners? >> there was one thing that syriza could have done. they could have gone without a coalition partner at all. they can form an independent government and we will have smaller parties bacchus. they will back syriza regardless. he could have gone without them in a coalition. that they brought them into the coalition is interesting. it suggests a slightly stronger meeting of minds are in maybe they will listen to them? they are going to send a message to the rest of europe. they are serious about the negotiations they want to see happen queried --. >> i think interesting story

will be to watch the banks. the banks were down hard at first thing this morning, they have since bounced back a little bit. the key concern will be the we end up with some kind of liquidity crisis in the financial sector. auto people are saying that they need to get a message from the ecb saying they will back the greek banks. you might see some concerns around the financial system. that story may play out a little bit more. i am surprised that the markets are not more volatile. they were first thing this morning. >> guy johnson is on the ground in athens. we will have more from guy throughout the morning as this is not only the story of the day, but the story of the month. this brings us to our twitter question. is this the end of austerity?

let's go from greece to germany. an anti-austerity coalition in greece put -- could put them on a collision course with germany. for the moment, they are sticking to their ground. >> that's the line. that has been the firm line. about two weeks ago, merkel could live with a greek exit from the euro. they walked that report back a little bit. last night we got a very clear line from the finance ministry. the agreement with greece remains valid. there is a great emphasis being put on greece needed to stay with the bailout program. they need to continue to pay back debt. if you look at the bill, they

went big. they went flashy. there is a great eel of concern and it's reflected in the herman ocular opinion. 68% do not figure a debt restructuring. they are leading this charge. it will be interesting to see if merkel can keep the german public with them or if the german public will be driving this. it's going to be no renegotiation and no haircut. it's a very hard line, at least in the press. >> what is the ecb stance? you just said what the german central banks think. >> what the eu has said, there was an interview this morning.

it's fascinating that these interviews take place in german language media. his interview was saying there needs to be a political solution and the ecb cannot by itself cancel the restructure the debt. it is firmly putting the ball back in brussels'court. in a couple of minutes, later on this hour, we will get reactions from the german government officially. maybe we can see what they think about what this new coalition government in athens is going to look like. >> thank you so much. hans nichols is there with the german reaction. our business story today aer lingus link is is trying to be purchased. guy johnson is on again --

ground. >> everybody is watching to see what the political reaction around athens and greece is. they are allying with the independent greeks. they are forming this government. we will be speaking to a member of the party when we come back. ♪

>> the? is what kind of approach will a new government of greece, how will it be formed once it is formed? i think it will be a good test of whether europe is your or just different individual member states. it's a very crucial moment for europe. >> that was a description of the greek election. it's a great test to see if europe is a mature political union. guy johnson is in athens. we spoke to her a couple of weeks ago. it will be interesting to hear her take. >> let's find out what she

thinks about the news we just got in athens this morning. it is very nice to see you. we are waiting for your count to come through. there is still a little bit of political drama playing out. your thoughts on the announcement that syriza and the independent greeks will form a government. >> i am a bit shocked and a government headed by syriza was something to be expected. it was reasonable to expect that. a coalition government with independent greeks they are a nationalistic party. at the time when the main issue is our relationship with the european union, it seems the independent greeks distrust the european union. i am a bit shocked. i am a bit anxious as well.

i did not expect a turn of events like that. >> what you think is going to happen next? what message do you think is being communicated? >> it is not a useful idea to think that everybody is can's hiring against greece. it does not help our relationship with the eu and other members of the european union and our creditors. i think it gives the wrong message. the main issue at stake is how we are going to improve our role in the european union. a new infrastructure is being built. if we appear to be hostile to everybody when our corporation is -- cooperation is most needed is bad news. i don't think paranoid parties

can be stable. there is a misunderstanding concerning the debt. both of them place the emphasis on the restructuring. the main pressing issue is liquidity in greece. liquidity can be safeguarded only within a safer framework in the european union. it seems that this detail is lost in both syriza and the independent greeks. >> do you worry that people will continue withdrawing money from the greek banking system? >> it certainly seems that there is a momentum of possible bad news concerning a bank run.

>> i think everybody is being careful to avoid talking about that. the liquidity is causing a bit of concern. when you talk about the euro and we talk about greeks membership in it, most parties say they want to remain in the euro area do they mean that? >> i have strong doubts. the independent greeks think of a completely nonexistent europe. i think there are reasonable voices within syriza who want to keep greece within the euro. that coalition with independent greeks has weakened them rather than strengthening them. >> do you know if there was any conversation in the last 24

hours announcing it? maybe there was never the option of going with another party. they never saw on our line. -- an ally. >> we were not going to cooperate with them. this was pre-election talk. we thought after the election they would think twice about it. tommy -- it is only a couple of thousand votes. the independent greeks are the sixth party. they have a much smaller share. they have a very muddled identity outside of the nationalistic hair annoyed thing. i would think that syriza would

be more willing to discuss. the first meeting was arranged with the head of independent greeks. there is a meeting i think this afternoon. this is for windowdressing rather than any meaningful discussion. we cannot cooperate with remnants of the paranoid populace. independent greeks are also refusing to talk. there isfor discussion. >> thank you very much indeed. thank you for joining us. waiting to see if she is going to be a member of parliament as well. it's not going to be in

government with syriza. that is the big shocking story out of athens this morning. >> great work there on the ground. we spoke to him couple of weeks ago. he was counted as a possible finance minister. stay with us. you don't to miss that. ♪

>> welcome back. we are streaming on the ipad. these are the stories of the day. let's get back to greece. we are joined by the member of the syriza party. we spoke to a couple of weeks ago. it's surprising lot of people that the coalition would be with the independent routes. you don't get along with them. what kind of coalition argue in visioning? >> what they hope for is a vote of tolerance from them. in terms of social issues let's

not beat around the bush about it. what we are hoping for is the number one issue that concerns the nation and europe is one where the independent greeks will be fully supportive they will not undermine it. >> you mean anti-a lot? -- anti-bailout? you're not going to be as pragmatic as certain investors thought? he is going to go hard on the germans? >> we are not anti-anything. this is heartfelt. the problem with the bailout is it wasn't really a bailout. it was a vicious cycle.

not only did it destroy our economy it was maximized. we are pro-nationality. we want to sit down with europe and find a mutually beneficial agreement. i do think the independent greeks are going to play anything with that. we will find an agreement between us and the european central bank and our partners. >> i am in athens with you. i wanted to get your take on what you think about the independent greeks support? did you have to offer them anything at all? >> the main offering coming from

us is an opportunity not to good edit history as a party that has called this moment in history to be missed. neither we in athens nor people in brussels and berlin could have another election. if another election were held the independent greeks or any other small party would be wiped out. this is the main offering. this is a chance to be part of something beneficial to everyone in europe as opposed to part of impediments to our shared prosperity. >> let me talk about the key

jobs. the independent greeks won't get any of the key jobs would will you be the new finance minister? >> i am very much afraid i am going to be a great disappointment to you. i would not be so presumptuous. only the prime minister should be making that. >> have you spoken to him this morning? >> i speak with alexis tsipras all the time. >> what was the first thing that you told each other? did you congratulate each other? we want to get a flavor. people want to get to know him better. >> let me tell you that with all of the members, what we shared last night into the wee hours of

the morning was a deep sense of pride fear of what's coming ahead, but also a great deal of optimism that the combination of our determination to do good for everyone and the energy of people who didn't even vote or us is going to be harnessed. >> very quickly, who is he going to call first? >> we are not going to single out any institutions of europe. we have a deep respect for the institutional framework. there is a process which is rational.

we will follow it exactly as we shouldn't. >> thank you so much for your time today. ♪

>> welcome back to "the pulse." we are live from bloomberg headquarters in london. the big story of the day is greece. we're going to look on the markets. let's check in on the markets. jonathan ferro has more. are the markets still looking at qe? are they worried about greece? >> i looking at the market here in europe.

it's higher. it's green across the board. here in frankfurt, it's up i 6/10 of 1%. confidence is stronger than expected. copper comes in at 2000 and nine low. let me show you greece. i take you to the athens stock exchange, down by 2%. the losses were bigger than that. the pain is in the greek banks. losses to the greek equity market greek bonds are taking pain. contagion at we are not seen that today. can see yields and italy are lower. the yield on the italian 10 year, remarkable stuff. there was a drop overnight.

we are back up on the day. look at it on the month. we are down by 8%. syriza forms and anti-coalition coalition. the market is still very much on. the games got legs. >> how is he going to play this? that is the million-dollar question. let's get back to athens. guy johnson is joined by the president of the athens chamber of commerce and industry. >> he is with us now. i have to say, this is a great story. without five years with a crisis

on off, where we now? >> five years of tremendous austerity, enhancing growth which was of paramount importance. we've got the him a critic will of greek voters. we have a new government and a new coalition government, strong one. we are awaiting to see what the official program and the official proposals will be from this new government. >> a lot of people were surprised by the news. they expected alexis tsipras to make a u-turn and take a more can aleatory turned. it doesn't look that this government is going to be conciliatory. >> i don't think it was a u-turn in terms of the election of the coalition or.

he has had a good reputation with the independent greeks. it was natural that he would be aligning with the independent greeks. what we were expecting, perhaps to have an even stronger coalition government would be for the new party that was invented just before the euro elections. they would be part of this coalition government. they are not. we are waiting to see with the official announcements will be. as of tomorrow, the full government will be announced later on today. >> this is maybe a natural pairing. does that mean this government will be stable? maybe we will get three or four years of the stability? >> the greek chamber

of commerce is in favor of the completion of the four year term of every government. snap elections create instability and problems for the daily operation of the market and the economy. i do hope this government will be steady. i hope it will address the serious problems of the economy. austerity has been applied over the last five years and we need to enhance growth now. we need to get the private sector working again so we can minimize this negative list of unemployed. we are holding the negative record of unemployment. they are the basic poor. in order to absorb these people

into jobs will be for the program for small and medium-sized enterprises to enhance progress. >> what do with the here? -- what you want to hear? we will get the unemployment story down? >> what the market needs is restoration of liquidity. we saw it coming back toward the end of september. following the discussion took place during the presidential election. they will not be supporting the election of a new president. we knew we were heading toward a snap election.

the banks closed the taps once again. it created enormous problems to the daily lives of small to medium enterprises area we to restore liquidity. we have created -- completed the stress test. what we need is primarily a stable but competitive business taxation system. we are faced with almost 2200 ministerial orders that pertain to the taxation is the. there is no stability. for any investor, we need a stable taxation system. the new government needs to make it clear what their position on privatization. there have been a number of privatizations that have taken place. we have heard that there is a government challenging

privatization. the premise that have been passed all over the world. the government tries to disengage from the system. >> do you think there is a concern of the more wealthy members of greek society that they will be targeted? will they be more nervous as result? >> we have seen this in other european countries. we saw in france when they try to government a very high level of x asian to the wealthy individuals and it did not succeed. he reversed his position very quickly. we have seen this example. it's not producing the results. what i think is prudent is to

have a steady taxation. through the competitiveness of your taxation system, you can chase local investments. >> if this new government pro-business or antibusiness? >> the political identity of being a radical left party, it would not mean that it is pro-business. i think the ideologies have gone out of the window a long time ago. what we are facing is a national racist area did this may be the worst national crisis since the end of the second world war. you need to find the necessary treatment for what we are facing international way.

coalitions like the one being formed later today, we need to pull together for solutions to problems we're facing. >> thank you very much indeed. >> thank you so much, that is a great interview. this brings us to our twitter question of the day. you can tweet is. canada, the next trail for task rabbit. they expand their push to empower micro opportunities -- micro entrepreneurs over europe. ♪

>> welcome back to "the pulse." let's talk. let's welcome the task rabbit ceo. i know most of our viewers know what it is. you say you need somebody to pick up your right cleaning. it will do it for you. the potential is immense. you have conquered london. how much more potential is there in europe? >> europe has huge potential.

london is our fastest going market. it is number four. we are in 21 series -- cities. we are looking at doing more european cities this year. >> where? we have so much focus on it greece. the problem now is the southern countries. they question what they will do with the euro. >> we are focused on manchester and dublin and zurich. paris. those are the cities we will address in 2015. there are more markets across the world. we would like to focus on them. >> have you choose a city? is it how much people use shopping online? the metrics must be mind-boggling. >> we have a 20 attribute matrix

that we assess for every market area we chose london as our first international market for a couple of reasons. after all the cities in the grove it, london was the one with the most request to launch. population density, levels of income, these are all factors that go into the equation. there are more european cities that fit that model that we are excited about >> you started the company when you could not find some money to feed your dog. how is the london consumer different than the u.s.? do we ask for different things? >> this market has been. in every city, even in the united states, cities are different. one thing that is unique about london is category mix. one of the top tasks in london is around a gardening. not a test you would think about

anywhere in the united states. tasks like furniture assembly, housecleaning, those are some of the common threads that bond is all. >> that is true. give us a sense of your main concerns. we talked a little bit about your object -- project for your ipo. you say that will be years away. you want to have a bigger critical mass. >> 2014 was all about rebuilding it, refocusing our audit experience and honing in and nailing our operational excellence on the backend. 2015 is about taking that model in stamping out into more geography. i think that will take us a couple more years. i would like to see us focus on europe in 2015 and asia in 2016. i want to be able to reach of the potential before we think about an ipo. >> is an ipo and option?

you have moved up so much. what are your concerns? an ipo means you have shareholders that may not get what you are trying to do. >> landscape has changed so much. people are raising dramatic rounds of financing. they don't even have to consider going ipo in the next decade. i think time will tell. the markets will tell. we will watch it closely over the next couple of years. >> there is a big difference between u.s. companies and european companies. u.s. companies are much more aggressive area what advice to give to europeans? >> one of the things that is inspiring about silicon valley is the level of innovation

risk-taking and omission about what impact it can have on the world with these ideas and businesses area i think more of that is a good thing. >> what is the most difficult part of your job? >> regulation is something we think about. it's a hot topic in the u.s.. we have been careful about the way we built our infrastructure. there are some companies that are taking shortcuts. i think that will come to a head this year. i don't want to be lumped into that. i want to make sure that we have a strong fence there. we are a very mission driven company. >> it was great to have you in our studio. coming up, and alliance in greece. the independent greek party is partnering with syriza.

that story is coming up next. ♪ ♪

>> this is a reason why this is

an important test to see if your has the maturity or not. it will be that was >> thank you very much printing. this is been a very interesting morning. we have had huge amounts of little velvet. the formation of a new government. it will be put into place this afternoon. i am kind of done. my colleague from the united states is here. i am going to hand the ball over to him very soon. he has got a good afternoon of coverage. >> he is going to get sworn in

at some point. they will be the first prime minister that doesn't get sworn in on the bible. >> i am getting mixed reviews as to whether or not this coalition has a shot. >> the interesting thing, i heard about the independent greek's would be the most likely. going to be strange. other than the fact that they are so anti-the memorandum they are very right wing. >> it sends a strong message to the rest of europe. >> i wonder if it's a negotiating tactic. at some point they may moderate a bit. he doesn't want to have any indication that tearing up the existing agreement is his first priority. >> they have said they will support me. i can guarantee that. the flight that he has ties them

closer. this is him saying i am going to be with these guys. this is what our government is. >> maybe there is some game theory. the person on the other end of the table sort of feels they have to blink first. >> there is going to be a lot of talk of linking. >> many cliches. >> what do you have first? >> we will talk with the person entering parliament on the syriza ticket. that is what everybody is trying to figure out. will they moderate? will the u-turn? i don't think anybody knows for sure how this is going to go. hopefully we will be able to

test out some ideas. >> when people the states look at this, do they think it is anything to worry about? i am curious about how it fits in. >> item that greece in itself people are worried about. i think the bigger question is whether what we saw last night in greece will be repeated elsewhere. i think spain would be a huge deal if a similar political development happens. >> there were lots of spanish there last night. >> investors would have to take that seriously if reese is not an isolated incident. >> i am going to hand the ball over to you. we will be back tomorrow. we will continue to read the tea leaves and figure out what is happening here in greece. it has been a fascinating

morning. that does it for now. >> i like reading the tea leaves. cassandra johnson is on the ground. we had some great interviews and we have 20 more coming on later this afternoon. that is it for syriza "the pulse." tom keene and his team are up next. guy johnson is on the ground in athens. we will see you tomorrow at the same. joe weisenthal will be on the ground talking to movers and shakers. i want to highlight european stocks. they do not seem nervous. they are at a seven-year high. the markets in general are less worried about this greek vote. we will not know if it will be like that tomorrow. it depends on how well he handles the election. we have plenty more throughout

the day. ♪

>> a coalition government has formed in greece. germany's worst night's reality as the people of greece say no to austerity.

the opec and non-opec consider a new saudi arabia. microsoft reports what to do with some $89 billion in cash. good morning, everyone. this is "bloomberg surveillance " live from our world headquarters in new york. it is monday, january 26. i'm tom keene. joining me is olivia sterns. rent in greeley is off today. >> greece is on a collision course with the neighbors that came to its rescue. a historic victory was won in yesterday's election. belt-tightening followed the bailout. the prime minister elect has made it clear what his priority will be. >> the verdict of the greek people and beyond any doubt, the vicious circle of austerity in our country, the verdict of the