>> we will look at the global implications. down to the wire. investors get noticed and it is not clear when kris will run out of money. we will hear from juncker and wolfgang. questions on a possible grexit> -- grexit. francine: good morning to our viewers in europe.

we begin in greece. . the country needs to pay 1.5 billion and pensions by the end of the month and and a list of reforms to the eurogroup. we are joined by marcus and matt. let's begin with you. when did they run out of money? >> no one knows exactly. it depends on how much they have in reserves and it flew look at the payment schedule in april, it is a much easier situation. march is a difficult month month and it has a big impact.

it will be tough. >> looks like it. they want to see a new list of reforms. and greece is insolvent, our reforms even possible? >> well, i mean, it is one thing and it is another thing to draw details and detailed plans on how you implement the reforms. implementing the reforms has always been a big difficulty and it is a major cause of friction.

the cash crunch has greece getting by from day to day and it is cutting back the least essential payments. it may allow the country to make payments from a day to the next. that means it increases the uncertainty around if they slip into recession because of this that kind of environment makes it a lot harder to implement reforms. >> we are not talking about a debt restructuring. should we be? >> it is being rejected by the creditors and it is not

something that would get them past the immediate cash crunch. it is a medium or long-term thing. if you look at the economy it does not make the situation any easier. you have a situation where on january 25, they say they do not want to take any more loans. instead, they want to restructure debt and they want short-term finance fixes to get us to a point where we can restructure the debt. this is when they were first elected. this is been rejected and they have moved to a situation where they talk about a list of reforms on monday and greece has to get some cash disbursement

where they can. that is the turnaround and it is become one after the other closed or found locked, in terms of ideas about getting financing. we can -- we can find a way to get through the immediate funding needed. what happens next? you start the process again. these are short-term fixes that are desperately being searched for and the heart of negotiation comes when you talk about the new bailout packages and rather than finding billions. >> absolutely right. marcus in athens. let's bring in mark gilbert. thank you for joining us.

you spoke to ceos. there is a little bit where we have to give greece more time. there is political will back by businessmen that we need to be tougher or not seen as slack. mark: we are no further along on how greece is going to meet the obligations and how they will keep the troika running things and satisfied enough. not a great situation. suppose we were put in charge of apple. we are bright people who know about business and finance. the government has struggled with jobs and it is about people and the relationship with germany has been abysmally disastrous.

it is not a good thing to do. what the market and business is thinking is that this is taking too long. we are that from officials. it is about execution and getting plans in place to deliver on. there is little evidence the greece can do that. francine: we talk about political will. if there is in that agreement are we in a default? is it immediate that we leave? " you are not supposed to be able to get out. capital controls. those are the blueprint

available. you do not want to lock borders to keep money and. greek banks and have lost money in the past year. every week, we report deposits flowing out. >> if you can get out, why would you risk getting locked in. is this the carrot and stick? is this a reward? there is a lot of cash. my worry is the second. it is not a long-term plan. they know what their obligations are.

there is a payment schedule. they have looked at something. >> what you make of the chances. -- what do you make of the chances? is the risk priced in? we have no idea what happens if greece one day says, we do not have enough money to pay. mark: if she says that publicly it takes a lot of stomach to bet against that in the markets. a-year-old above 25%. -- a yield at a time when

everyone else has negative yields. the market tells you there is a risk of a grexit. francine: you can find him on twitter and we will be back with mark. we'll talk about the effect of oil prices. you can tweet us. here is what is on the radar. the saudi's and some allies are seeking to stop the incident on the southern border. the stronghold of the yemen

president. officials investigating a crash that killed 150. evidence suggests that a pilot may have been locked out of the cockpit. the crash site and the search for the flight recorder has continued. the company says it will increase profit growth. adidas tries to help market slide. coming up, we will show you the financial problems. crude has the biggest rally and saudi arabia begins airstrikes on yemen. we will have more on that next.

francine: welcome back. for more on the race against the clock, we are joined by the senior european economist mark gilbert and james.

thank you. we were trying to find out where the next step is. i want to focus on the story on the bloomberg terminal that goes through the worst-case scenario. what happens next? >> we are in uncharted territories and it would not miss surly be the trigger. it would be for something bad to happen for the ecb. you are at limits at whatever cash they have. after that, you have the possibility of freak out and the

government compromises gave in to the government demands. or, they say, we cannot live like this and the germans do not want us here. they do not want us and we do not want them. they print a means of exchange to keep the economy functioning and the euro is circulating at the same time. in all events, the economy goes down the chute. >> this is like a spielberg film. >> armageddon. the euro was supposed to be forever. there is not a legal -- the ecb said it was not legally possible to leave. it is just work. for the people of greece, it is not going to be pretty. >> not that at all.

how concerned are you and give us a sense of interpreting the facts yesterday. mark gilbert says, is this a sign of how things are? >> this is important. recognize there is goodwill. if we want to get a global view, we need to recognize there is a strong political issue here. the idea is that the government is not going to be able to agree and it will ultimately deliver sustainability.

presenting measures at a political level is not sufficient with the plans and disbursements. you need a technical expertise and the institutions are an important party and a fact-finding needs to follow any political commitment the government can take with european counterparts. i think we need to talk about the political side and, we think the current political situation in greece needs to improve. >> charlie monger said you cannot vote yourself rich. the greek people cannot vote themselves to be better off. d think their unable to satisfy the demand?

-- do you think they are unable to satisfy demand? >> that is the way the situation gets resolved and the most reasonable way we can conceive at the moment is by the creation of a unity government. it is clear from the population that there is an element of inconsistency. the understanding is that the greek people are not happy with the conditionality imposed on them. in order for the step forward to be made, you need a representation of the population and a big challenge of accepting some elements of conditionality. it is to either include a

reflective population believe or moving to a government with unity. to answer your question, probably. >> finish your thought. i will pick up on it. >> we think that it is moving towards a unity government and it is the most likely outcome. it creates the conditions for a script. >> is this the greek government playing games? they are ready to implement reforms and they have a great plan. they need to make sure to show the population all they can. >> that is the most optimistic the new and i think what you see is what you get. the government does not really know how to square the circle.

>> they were not expecting the partners. >> exactly. you see an ability to balance demand. and it is the worst political since the war. >> do not bet against. think you for coming in. jim mark, and silvio. coming up, the investigation continues into the german plane crash.

francine: welcome back. and at the low end of original guidance. great to have you.

>> this is a state that they have had and it was part of the strategy of being stronger in europe. now that has happened and there was a crash with a financial crisis that they are recovering from. i think there is a sense that this strategically did not work out for them. they are setting a strong signal to the market. and i think the stock price will. christ down 9.7% as we speak. -- >> it is down 9.7% as we speak.

quest this is a great market to be selling and we wrote about the deal. -- >> this is a great market to be selling and we wrote about the deal. it is strategic they are stepping out of and investors want the discount to reflect that. there is demand and we are seeing that. >> you are talking about the indices. >> we are seeing sales in banks. that was a great example that they raised and we are seeing sales in all sectors because of optimism in the economy. so, it is not just any particular sector. >> great to have you on the program.

coming up, saudi arabia strikes yemen and we have an update on the escalating conflict. stay with us.

francine: welcome back to "the pulse." i'm francine lacqua. let's have a look at one of the main stories we have been covering the last couple days. one of the pilots of the flight that crashed in the outs may have been locked out of the cockpit before the flight went down. that is according to the "new york times." joining us now is bloomberg news 's aviation reporter. what are the details?

they are still looking for the second black box. >> the mystery deepens really. reports regarding those cockpit conversations and the noises that suggest one pilot was locked out have not been confirmed. there is a very strong suggestion that this is what is revealed by the tapes. the suggestion is that one pilot left the cockpit. the door was then shot. -- the door was then shut. later in the tape the grand proximity warning goes off and then the tape cuts out. this raises all sorts of questions if this is correct. specifically, why was the second pilot unable to regain access? guy: if i am a pilot --

francine: if i am a pilot, how easy is it to get back into the cockpit? >> it should be fairly straightforward. there is a code activated lock. either pilot would be able to use that. if the correct number is inputted, even if it is not opened from the inside, it should open itself automatically. if this panned out, as it seems it could be that the remaining person in the cockpit played some role in preventing that door from opening. francine: or a technical failure of the lot? is that too far-fetched? >> something may have happened to the other pilot while the second pilot had left. but there should not be a

coincidence between the technical failure of the lock and something happening to the pilot flying. that seems far-fetched. some airlines of the policy of two in the caulk it -- cockpit. if one pilot leaves, a member of the crew accompanies the remaining pilot, but we don't know if that applied to germanwings. there are many unanswered questions. we may get confirmation of this later in the day. this puts more of a focus on activity involving those pilots than on some of the other areas such as depressurization. it is possible to see a combination of factors at play. francine: thank you so much. >> the second black box is important and it will give a second by second account of what happened, but the voice recorder does seem to be pointing in certain directions. francine: thank you so much.

to the middle east of the internal conflict in yemen. saudi arabia has launched airstrikes against hutu rebels -- huti rebels. elliott, what is happening? >> there have been a number of developments in the past hour or so. a saudi arabian coalition launched these airstrikes last night at about 2:00 a.m. local time. in the past hour or so, we have had some reaction. many people suggesting this is a proxy war between regional powers of saudi arabia and iran. iran has decried saudi arabia's actions in yemen as an invasion. they have rather ominously said that the war will not be

contained. there are reports that the president has now resurfaced in oman. a couple of developments there. in terms of the strikes themselves, they have been targeting strategic targets things like weapons stores antiaircraft guns, and airfields , and the presidential palace even. there have been reports of a dozen civilian casualties. the saudi ambassador to the united states outlining the primary objective behind these strikes. >> we will do whatever it takes in order to protect the legitimate government of yemen from falling and from facing any dangers from an outside militia. >> saudi arabia particularly

concerned about not just further instability along its border with yemen, but also the possibility of having an iranian proxy right on its border, as well. iran is accused of supporting these shiite rebels who have been advancing to the south and have threatened to take over yemen's main access points. francine: why the saudi's getting involved now? >> they are getting involved now not just because of the advanced by the rebels to the south. they had already taken over the capital several months ago. but also because the president had asked for intervention as he saw that the rebels were advancing. he also asked the saudi's and regional allies to intervene.

yemen was sliding in a thoroughly toward civil war. -- sliding index orexorably toward civil war, not for the first time, it should be mentioned. francine: elliott, thank you so much for the update. saudi arabia's action in yemen is pushing oil prices higher. yemen does not produce a lot of oil, but they are crucial in the region to get supplies in and out. >> there is a transport issue and a general concern about instability in the middle east. that is a concern whenever we have saudi arabia scrambling the jets. the oil market is going to pay attention to that. francine: what does it mean for the price of oil?

>> we have seen no disruption to supplies. we are unlikely to see disruption to supplies. the market was very short. people are covering their shorts now. the fundamental problem of too much oil remains. they are meeting this weekend in switzerland to discuss the resolution on iran and that will certainly not help the oil market. francine: if you look at the factors involved i guess we don't know what the market is doing except swing from one to the other. is that fair? >> yes. the barrel increase in the u.s. continues to be a big overhang in the market. francine: thank you so much for the update.

adidas unveiled its new business strategy. will it help the sports maker overtake nike? we will talk about that next. ♪

francine: welcome back to "the pulse." live from london.

$7.7 billion -- a bold plan for international expansion. mark zuckerberg made an announcement at facebook's developer conference. >> it is a new platform. [applause] >> messenger platform is a new platform that developers can use to build apps that help people connect with the more than 600 million people who are using messenger to communicate every day. francine: apple plans to introduce a trading program for iphones in china. a similar program bolstered sales in the u.s. consumers would be able to take

older iphones to stores for credit against products. adidas unveiled a new plan in its plant to overtake nike. for more, we're joined by caroline hyde. caroline: they have got some big promises for investors, who have weathered the storm of last year. adidas, the worst-performing stock on that dax last year. now, they are promising big. they are promising 15% growth in profits over the next five years. 15% growth per year, francine. 30%-50% of net profits will be paid out as dividends and shareholders will be reaping the rewards of the one point 5 billion euros that they are handing back over several years.

they also promised high single-digit growth in sales. they could reach up to 22 billion euros. then you get to the nitty-gritty . how are they going to do this? the whole project is called "creating the new." they are focusing on their three key brands. adidas, reebok, and the gulf maker tailor-made -- golf maker taylor made. they promised speed. they are going to quadruple the amount of products they sell online. they also are focusing on cities. they say urbanization is what is -- where it is at. l.a., new york, london, shanghai , paris, tokyo. nike has focused in on cities.

adidas is taking a bit of a leap out of their book. they promised to engage with consumers, retailers athletes. it is all about talking to people now. francine: very big promises. is the confidence that the leadership can and will enact the change? caroline: the board extended the ceo's contract until 2017. the whole project is looking out until 2020. who was going to ride this out until the end? some are saying that they should walk now -- he should walk in so that they can get new blood in to drive this new so-called "creating the new" forward.

it was only last summer that they said they were not going to meet their targets for this year. operating margin was to be half of where they had originally promised. there is not much faith in the chief executive. which, to a large part, is rather unfair. he has managed to triple the value of adidas since 2001. but you compare that to nike and the value has gone up ninefold in the same period of time. the dita spent so much on marketing. -- adidas has spent so much on marketing. it has lost market share. is this the right man for the job? back to you. francine: caroline, thank you. caroline hyde will have more on the story later in the show. will adidas be third time lucky?

joining us now is the niece capital fanned her -- nice capital founder. the bottom line, a lot of people by nike products and they don't want to do the same with adidas -- buy the key products and they don't want to do the same with adidas. -- nike products and they don't want to do the same with adidas. >> it is still disappointing growth because the industry is doing so well. nike has made life very difficult. it spends more money on marketing and technology to make its products feel superior. competitors cannot just seem to keep up. francine: what do people want? there are a lot of people that wear trainers or sneakers, if

you are in the u.s. watching us come out every day because it has become cool. -- watching us, out every day because it has become cool. what would you focus on if you were adidas? >> it is a combination of all of the things. adidas has underinvested compared to nike in all of them. who is willing to pay how much more in terms of pricey sneakers ? nike has gone that way. nike is winning the race in endorsements. they are catching up on all of these things and that is difficult. the operating margin target keeps on coming down. adidas is struggling to get to 7% of margins. this used to be a 10% margin target not that long ago. some people are getting left behind, even in a gross business. francine: to you get a new

design team rd you spend more on marketing? -- do you get a new design team or do you spend more on marketing? >> you need more on marketing. you need to spend more and that may mean lower margins. francine: spend more on what? >> is this a marketing campaign -- spend more on what? is this a marketing campaign or are you sponsoring things? nike is in very crucial sporting events. >> i think it is the visibility. nike is bigger than adidas in europe, for the first time in their home market. they are overtaking adidas at their own game. they have got left behind in the

run heritage unfortunately -- their own heritage unfortunately. they are talking about the prime cities, that is right. but they are almost a decade too late. francine: is there a danger that they are trying to copy nike? is there a niche that adidas does not have? is it a more urban street style that they have to go after? >> probably, but it is so underinvested. you don't even see reebok on half of the european store shelves now. the problem is that nike has covered so many of these flags. you have to consider yourself the stepsister or the stepson. francine: if they are over invested, do they have to raise capital? >> i think they are a little

away from that stage. the balance sheet looks ok. you have a competitor generating twice as much cash and spending twice as much as you. from that point of view, adidas does look underinvested. you do have to wonder. you have a competitor who is twice your size, who has twice the margins. francine: thank you so much. coming up, the charts behind greece's cash crunch. ♪

francine: for some of our top bloomberg stories the announcement of a merger with hertz to create the third -- i that was heinz, not hertz. it will create the third-biggest food company in north america the merger between kraft and heinz. schlumberger units will plead guilty and face sanctions and

fines. england's premier football league posted its first profit since 1999. the league sold tv rights for a record 5.1 billion pounds for three years starting in 2016. that is a 17% increase in price. greece is meeting with european officials. the country may run out of money in april if no agreement is reached. >> greece is running out of money again. while the new prime minister is trying to convince europe that the country will pay its debt greek citizens are not as confident. bank deposits have tanked. it would seem that individuals and corporations are not sure their money is safe in the bank and are depositing it abroad or

stuffing mattresses. private banks are not the only institutions struggling to stay -- to stay solvent. greek's debt as a percentage of gdp is huge, nearly 180%. making it worse, greece's gdp is falling after a brief uptick. unemployment has stopped improving. the economy had a period of improvement in 2014, but the election of a new government has given the financial market the jitters. jitters that can be and in the 10 year government -- in the 10 year government yield bond. investors are less confident that greece will be a book to pay off its debt in the long-term. who pays if greece defaults? european governments will take the biggest hit. they own 62% of greece's debt. the private sector claim 17%. the imf owns 10%. all kaluz of greece does not pay back its loans.

-- all could lose if greece does not pay back its loans. francine: that is it for "the pulse." for viewers in the united states, "surveillance" with tom keene. ♪

tom: oil and gold surge.

secretary kerry is in switzerland in search of a framework deal with iran. the mystery deepens over the crash of germanwings 9525, a pilot was alone in the cockpit. severe thunderstorms. there is a new hurricane. good morning, everyone. this is "bloomberg surveillance ." impact thursday, march 26 -- a packed thursday, march 26th. olivia: new questions about the mysterious plane crash in france. according to reports, one of the pilots was locked out. there has been no confirmation of the story. french officials have said it may take months to analyze the data from the cockpit recorders. the flight made