guy: express from the u.s. fedex buys tnt. greece looks east ahead of tsipras' meeting. we will talk to a member of his government. the euro's starts the role. spain has strong manufacturing numbers. ♪ guy: welcome to the pulse." i am guy johnson. my colleague, francine lacqua,

is off today. euro area pmi coming in at 54.2. slightly below the estimate. but i think within the plus and minus pmi, rising to 54.1. i check on the light side. not too excited about that. euro-dollar is softening a fraction. it is still sub 110. on change. softening a bit. as the data his of the screen. a fraction negative. -- as the data hits the screen. let's get more from hans nichols. he joins us from our land. the number is soft. -- he joins us from berlin. hans: that is the point. it is expanding. it is lower than what was expected. you look at the spain number and it was 57.3 up from 56.2 in february.

we may hear about diverted economies. growth in spain and italy. and people will take a very close look at the numbers in greece and whether you are -- you can accept these other points and whether or not greece is swept -- excuse me, slipped into reception -- recession. our tax receipts were way down in a january and february. they have seen capital flee the country. 25 billion euros in the first quarter. in some ways, an indicator of how the economies are diverging and what is happening in greece and adopted proposals on what expansion every track that are on. guy? guy: let's talk about greece.. imf payment and that meeting with christine lagarde this week. there is an awful lot going on. pull the parts together for me. hans: the meeting matters in terms of the optics and if there

any firm agreements to come out. just going there is not seen as being in europe. just visiting, merkel has been there. the april 9 payment is due to the imf over the weekend. the greeks and imf said they would make that payment. the big date everybody's focused on is april 24. that's what year invites farkas -- yanis hard-fought this is setting the deadline. finance ministers are meeting on april 24. -- that's when varoufakis set the deadline. guy: sometimes there is a risk to scratch our ahead. 279 billion euros is the number. look at it again as scratch my head and wonder how they came up with that number for world war ii reparations. hans: they had committee looking at it. and they looked at archival evidence as they say. the number is 278.8 billion

euros. 40% of germany's gdp print to give you one example, this loan that has been well documented during the world war ii era for 450 million right marks and that is 10.3 billion euros. that gives you a sense of what greece multiplier effect. as they keep saying here they issue has been litigated and decided. guy? guy: hans nichols running through the data and the rest of the week. let's stay with europe. his bridgewater associate is the world's largest hedge fund he bets against the euro. good to know what is doing right now with his money. let's figure out what is happening here in your. we are joined by fidelity worldwide head of equities.

good morning. glad to see you. better to visit the euro is that last year's trade? guest: what is the thing interesting about the way in which the currency moves or involved is is it has been very fast, very quick. and i think what carried us up to this point has been a deviation in expectations about rate. at improving conditions in the u.s. and in europe and that has driven it up until now. i think sort of that against the euro from here and to really by conversely that against a strong during the -- dollar very heavily. more structural factors if the u.s. is becoming more independent from an energy perspective and basically going to be exporting less of the world's resolve does reserve currency? and what it means for the success of china?

guy: nothing to do with europe? paras anand: exactly. it is a zero-sum game. you have to look at one of the most powerful elements. to sit here today there are signs the european rail economy is recovering and a stabilizing and quantitative easing that could've the perspective, an interesting perspective that easing ends earlier that people are talking about. that in itself could mean perhaps the alliance chair other -- liion's shar of the jobs have met her. eguy: it is getting better. the european number looks pretty good. well north of 50. the spanish number approaching 60. how solid is the recovery? we will talk about stock evaluations in a minute. from a top-down point of view,

if you're sitting in the world and looking at your and the recovery is starting -- a europe and the recovery started, how quickly is it? david binks -- varoufakis paras anand: i would characterize it as uneven. a country, certainly local economies outperforming others quite significantly. one of those real reminders. you get investment commentators that link europe's situation to japan. we are seeing economies that actually suffered quite badly like spain and ireland producing some the best economic data right now. other economies like italy and france, relatively lackluster. investors looking at europe need to look beyond just a recovery and domestic demand. guy: you have to be more specific than that. paras anand: i would argue that.

guy: we talk about the stock valuation and m&a. glad to see for the moment. paras anand. he will be back in a moment. what is on our radar? 2 central banks left of their rates unchanged. rba kept rates unchanged. people were expecting a cut. india's central bank left it on cut. yet to pass on the previous cuts to customers. it is a problem with the indian banking sector at the moment. we are talking about much more as we head toward the back end. oil has games, the biggest rally -- gains in two months. new york trimming a 6.1% surge on monday. outweighing forecast for u.s. crude supplies. saudi arabia is expecting improvement in demand. and george osborne will head back to labour's claimed that

his party has made a middle-class families worse off. in a speech today, he will say the previous labour government oppose taxes worth almost 2000 pounds a year in world terms. the parties clash on tax policies -- a year in real terms. -- the parties clash on tax policies. the latest polling showing the 2 parties remain net in that ahead of the elections. -- internet -- neck and ne ahead of elections. fedex buying the strugglingck dutch tnt company. well more on the deal when we come back. the to a question of the day -- are you working companies cheap? are we going to see you as companies look in and say, you know what, with europe and the way it is an a recovery gaining

traction is it time to pull the trigger on the deals? we talking straightforward economics. we will be back. there was your. we'll see you in a moment. ♪

guy: welcome back to "the pulse." we are streaming on bloomberg.com, that new bloom -- bloomberg.com. we are on your phone and tablet. tnt express is off 30%.

the struggling dutch logistics firm has been bought by fedex. let's get the details with caroline hyde. caroline: up goes the share price 31%. the offer is 33% to be precise. 1/3 premiere. this time being offered by fedex. just two years ago, it was indeed ups that wanted its hands on it. quite amazing, points of view by the management. saying it is a much made in heaven, but the deal is eight euros a share it is all about fedex. wanted to grow itself within europe. a key pillar to their growth plan by the chief executive of that expert he was saying i want to boost profits by $1.7 billion. that was back in 2012. how would he do it?

he would look into europe. they said buying this asset make sense. they do not have that many overlapping synergies so they are over to reduce overall jobs they have to cut and focus on gaining scale. they said the deal would close by the first half of 2016. an interesting aspect to this is antitrust. and tnt's turnaround. back in 2013 is when the deal with ups unraveled. that is when the american company wanted to get its hands on tnt express offering 9.5 euros per share, even more than fedex currently offering. and a deal unraveled because of antitrust issues. i felt the competition would be crept if ups was coming in. they said is that of having to replace there would be 2. david brink, the president of fedex said it asked competition

and a new player to europe. they feel they will get the deal through regulatory issues and get it done by the first half of 2016. we want to see how the turnaround of tnt express continues for it has 4 straight reductions in profits for the past 4 straight years. not just reductions but 4 a will losses and they are trying to turn the company around an upgrade the system. we will hear more with fedex's help. they call it a perfect fit. back to you. guy: caroline, thank you. caroline hyde on that transaction. part of our twitter question whether or not european companies with the recovery are getting a plays a place and you see what is happening with the equities story. are they looking cheap? as this economic story starts to gain more traction. let's ask that question now to

our guest with us, paras anand joins us from fidelity. good morning. welcome back. trade deals. web seen the past -- we have seen the past year and have been in versions and all kinds of reasons for you are we getting into a new phase of m&a? 4paras anand: i think we are seeing a continuation of two types of corporate activities that we have seen kick off over the last 18 months. it is a cycle that has a way to run. the good news is we are i would say in the early phase of the cycle. the two types of deals are straight out acquisitions. the straight acquisitions are going to receive a shot in the arm why a move in the currency. the euro depreciated as much as it has will strengthen the power of u.s. companies. the other types of deals are what you could describe as

corporate restructuring or renewal deals were companies have basically taken their businesses and reshaped it down, selling them off to divisions doing asset swaps with other companies, and focusing on core activities. i think both of those types of activities continuing over the coming years. guy: the first one is dependent on the weak currency. if we see the currency picking golf, you think it would slow down? paras anand: i don't think it is entirely dependent but the other factor is at the moment, a very unusual point in the business cycle work corporate balance sheet are very un leveraged. many ceos are saying i cannot see this brought a best -- broad-based upturn. weakness in asia and recovery in europe. the best way for me to sort of a drive value for shareholders is to consolidate the industry to

bring additional value through cost synergy. guy: it is offense it. i got it is wrong, basically. not a european rally in good valuations and as result, you can take advantage of that. i will come in and do traditional corporate reengineering and make the story work for me? paras anand: it is sort of neither holy defenses or defense it -- often -- wholly offensive or defense it. in a way you could say deploying capital in this cycle, using on leveraged balance sheet and doing something other than buyback you're on equity. making -- buying a back your own equity. it is companies trying to build their franchise and consolidate their industries and accommodation of those 2

factors. exploiting long-term revenue opportunities. guy: the opportunities are -- if you are a dollar-based company the opportunity is right here right now. a good window we may go a little bit further south or further north. in terms of i have a check in front of me and i'm looking at this, we did a numbers earlier. significantly cheap to buy tnt now in terms of billions. now is the time to strike. paras anand: don't forget when you are buying the european companies, you are buying international companies. what fedex is doing is using that the currency opportunity in the short-term tell by an international. going back to where express was earlier, the corporate duct of cycle is as air. the recent depreciation in the euro gives a bit of a short-term

shot in the arm. guy: if you want to take advantage of this, how would you do it? paras anand: what we have done and what we look to do is look at hard to replicate franchises. it is hard to revoke franchises are often cheaper in the long term on most scenarios. when you have factors like currency depreciation, that plays up the potential and the added option alateen that someone else -- optionality as someone else in my say looks attractive. guy: thank you. joining us from fidelity area we are going to take a break. we are back in a couple of minutes. see you then. plenty more to talk about. ♪

guy: welcome back. you are watching "the pulse." now the iranian nuclear talks with world powers ended in an agreement last week. the white house said at the terms are still in dispute. let's get more on this story. bloomberg's reporter joins us from tehran. how has last week's deal been received in iran? a sense maybe we are getting too

excited, too soon. reporter: i think people are very excited because it is a concrete step towards getting sanctions listed. it is so many extensions to the talk. 18 months of negotiations. some felt almost kind of tangible. like a real kind of milestone. people are coming out industries. guy: do you think the expectations may be unwound? there's still a lot a detail of that means to be analyzed and this deal may not turn out as special as some people are anticipating that it is? golnar motevalli: yeah, i think

people are very aware of that. [indiscernible] these talks have been extended. there also cautious. they are very aware of the extension and the deadline. and one of the issues in tehran, which opponents of iran are saying are the details so much still up to discussion. and i think people are aware and at the same time. it is allowing people to enjoy the moment, if you will. guy: golnar, looking at pictures, we have visit meeting

taking place. looking at live cages. how significant is it is a meeting going to be between these 2 countries? the relation could become significant as both a five for control of the region. golnar motevalli: yeah, i mean it is very interesting time. everybody has been knowing it is in the cards for a while. in that time, we talked about strikes in yemen in the position of both countries. it has not changed. there are still opponents of the war. because of that, there is some tension in iran's parliament. some parties not quite as jolly. [indiscernible] the relationship, economically between the two countries is very strong. [indiscernible]

iran's is massively dependent on trading. guy: golnar motevalli, thank you. we will take a break. we are back in a couple of minutes. ♪

game bank welcome back. you are watching "the pulse." i am guy johnson. i have data for you. march pmi better than expected. 58.9 is the number. that is versus a february number of 56.7. the services sector is the largest part. we have a real blowout number. the data coming through stronger for the u.k. economy right now. there's evidence of that. in terms of what else we're

looking at as well, seeing some on the spc notes coming through. we will get to those in a minute. extending the decline after the pmi service report. the number, through is much better than anticipated. let's turn our attention away from the united kingdom and will be back in the u.k. later. let's talk about what is happening with greece. the grease of finance minister yanis varoufakis in washington and he and shorter the imf head they will make their forger 50 million euro repayment to the fund this -- 450 million euro payment to the fund this week. let's try and get some answers for some of these questions. the greek alternative. foreign minister for economic affairs joins us now.

sir, thank you for taking the time to be with us. let's start with the trip to moscow and what mr. tsipras is hope to achieve when he travels to russia. what are your thoughts? euclid: greece is not the only country that since people to russia and sometimes it is blown out of proportion what we are hoping for. it is a trip to speak to a friendly company -- country. old countries are -- in both countries are christian majority and we have had traditionally good relations with them and discuss the various issues with them. we offer our services for our common understanding and international relations problems. i do not think it has been

reported in some elements of the media as if we are subtly changing where we are focused on which is the european union and the eurozone and sorting things out. we are a major concern with greece's relationship with partners and creditors. and this is not altered in any way by the visit to moscow. guy: you can understand the nervousness because while you may talk of doubt russia being a traditionally friendly ally others may not see moscow like that. euclid tsakalotos: what i am saying it is the greek orthodox easter and blessed are the p makers -- peacemakers which are the children of god which is a phrase from the bible. if you can help put tension and help sort out to misunderstandings or to promote

peaceful relationships then you should be able to do that. and greece is an independent, sovereign country that has an independent foreign policy the and can discuss with various people to exchange views and how you mutually reach agreements. what i want to focus on is that is not to exclude, our main focus is part of the eu and part of the eurozone and we want to remain like that. we are doing our best to reach a new deal from what we think is good not just for the average greek but average european. the economy is not doing well and it has to sort out a number of problems to deal with architecture and the way it has dealt with the debt problem. guy: one final question on russia, if i might and i appreciate what you are saying is we should not blow this out of proportion, it is a standard diplomatic relation playing out here. is there anything you degrees will get out of this from this

trip -- greece will get out of this trip from russia? maybe a source of funding? euclid tsakalotos: that is not a white alexis tsipras is going. for the funding issue, we think it have to be sorted out. -- that is not why alexis tsipras is going. we have not had any financing and will not had any financing and we are paying back lots of debt since the summer of 2014. since the greek government has been elected, we have been stalling liquidity. and we are reworking toward sorting out an agreement finally on the sort of reforms from both the old program and wasn't the greek government is breaking to the table -- and what the greek government is bringing to the table to get to the liquidity

problem and to ease some of the funding. that is the way greece is going to sort out its problems. guy: what in your mind came out of the meeting with christine lagarde? there was an agreement to make the payment to the imf. as a big hurdle for the country to make. do you think there will be a different tone to the examination of the greece economy by imf officials and other officials? what do you think the dividend of that meeting will be? euclid tsakalotos: well, we should see. when you negotiate with your creditors and your institutions negotiations at a various level, political and technical levels. some of the peoples on the technical committee disagree and we visit with them and abrazo groups. we are the same people involved in the previous program. the previous is the baby.

i am not saying that in a derogatory way. when you spend four years in a particular program, you get attached and sometimes it is difficult to inc. out-of-the-box and -- link out-of-the-box and incorporate new ideas and see where it failed and where you could do things better. sometimes till soft in a higher political level with -- to solve in a higher political level with other leaders and mrs. lagarde. i think sometimes that helps and sets some political boundaries. there is a new greek government and has to reach a compromise. the finance ministers said it best at the beginning when he said we have 2 principles. european laws and rules and principle of democracy that want to bring new ideas and we have to find a compromise.

partly technical and partly political. we are trying to find solutions at all levels. we have a good scenario and we think the conversation, the discussion between finance minister varoufakis and ms. lagarde is part of that to make sure it is a viable and mutually beneficial sustainable agreement. guy: you talk about the repayment your country is making earlier in the conversation. if the imf repayment happens can you give up -- euclid tsakalotos: it will happen. it will happen. yep. guy: that will happen. what is the funding story after that to roll over t-bills, how much money is available to your government to make additional payments that come close to the imf repayment? euclid tsakalotos: i think we have an outside limit as you

know, a eurogroup meeting and we are working very hard and advice they a good scenario. and by then greece needs to have had some movement on its funding, the money by the imf and the other institutions and the ecb takes the signals, an independent institution. but our hope is it will accept that we are now committed to this reform program and the process of how these reforms will be implemented. when it reverses all of his decisions, squeeze liquidity and there will be relaxation on both the ecb, the waiver, and the t-bills and funding from the imf. greece is extraordinary situation. there's is no other country i can think of that is paying off is dead from other resource --

off its debt from other resources. that is not a normal. very abnormal. we have to get out of the situation soon. no country can pay back creditors from other resources without access to either private or other funding. that does not happen. guy: what happens if there is no deal in place? you talked about being prepared. you do not get a deal done at the meeting, what happens next? you indicated it is not a sustainable situation. euclid tsakalotos: everybody knows and that. most people are working for the good scenario. i prepared to stick to the good scenario. there is good faith on both sides and both will work and that will find a solution. that is how it works in the eu. sometimes at at the last minute

and sometimes better if the eu could sort of these things without going to the brink. that's what happens. guy: you say there is a good scenario. doesn't mean there is a bad scenario? euclid tsakalotos: there's always a bad scenario if the mind is now focus on what needs to be done. i do not think it is very likely. the greek government is coming to the process and you know that alexis tsipras had a meeting during the last european council with six other people including president of the ecb and mr. landon and mrs. merkel and so on. they tried to sort out to the level a lot of things were hammered. if they visited in berlin and they discussed it. all the signs people are getting together and trying to work out disagreements and we should focus on the good scenario.

guy: are there read allies which your government will not cross -- red lines which your government will not cross? what is the story? how does it work? if you have red lines, you are setting a limit. euclid tsakalotos: i do not think there go be a sovereign government that would not have red lines, that ms. there will be no 2 -- that means there would be no 2 principles. there would only be one prin ciple. there must be redlines to vote. it is one of our arguments that people should listen to what the greek people are saying and to their mandate because if they do not do it people will realize or clue what to the conclusion which we do not want to them to

do, it is an eu that is not able to incorporate democratic and social change. and that i think is dangerous for the eurozone over the long run. i think the scenario is based on that kind of compromise and that must have read lines. if either what is on the table it will continue as if there was not a general election and continue to reduce wages and recessionary measures which led us into the debt trap, i remind we started off this process of programs with 120% of gdp debt and now it is near 180% debt. something has gone slightly wrong and you would agree with me. if the only thing on the table was continued those failed policies. diving i am curious about what happened and that scenario. you must be ringing about this. -- guy: i am curious about what

happening in that scenario. euclid tsakalotos: the negotiating, if they do a then we will do b and c. guy: i am curious to know about whether or not if a negotiating story or if your party and your government will say you know what, we are not getting the results we are looking for and we do not feel like our democratic mandate is being achieved and we will go back. i am asking you a question about the democratic accountability. euclid tsakalotos: democratic accountability of this government has red lines on pension and labor reform and increasing sensitive areas and so on. i have a feeling that our partners realize that they have to accept there is a new government and they are looking for a deal. what we will do and if i am

wrong and that assessment, when you will have to see. and as in the greek government focus, working hard on the good scenario. and i think a lot of other people are doing it as well. guy: one final question. the reform package at 1.4% this year. it does not look like that 1.4% will be achieved. how realistic are your targets given the gdp starting parked -- point may not be available? euclid tsakalotos: i mean the 1.4% -- the forecast i have seen is very close to median predictions from various organizations. i think there's a lot of potential for growth in greece. of course, it has to be under conditions where there isn't a threat of grexit or there will not be new financing.

if you can sort that out and people have the confidence to invest in greece and take a money back into the banking sector. as you know before the election we had a mini bank run. that this government has eight months to prove itself and do those reforms, you can remarkable turnaround. i inc. -- i think at economy guys lost 20% of gdp is an awful situation because of the number of employed. the other side is you can quickly recover. that is what history shows. if you go beyond that and convince people that more austerity is just a vicious cycle of the debt trap and knowing -- and no improvements in unemployment, greece has a lot of potential as a a lot of

investors are telling us. a lot of investors are telling us if we can get a small period of stability, we're interested in investing in greece. there are a lot of opportunities. guy: euclid tsakalotos sir thank you for your thoughts and time. foreign minister for international economic relations, foreign minister for economic affairs. really interesting thoughts in terms on where the greeks see the economy going next in relation with the eu. let's had a little further east and south. the turkish president is in tehran for meetings following a war of words. our reporter is an istanbul. what has triggered they easing our relations between these 2 nation? -- nations?

reporter: it was triggered by a crisis in yemen and president of turkey talked about domination of the region. news agencies saying iranian policy what if he turkey and saudi arabia and other countries are uncomfortable. it can no longer be tolerated. his comments angered those in tehran. ak from hard-line conservative mp's who wanted to counsel -- cancel erdogan visit. he has landed in tehran. and is expected to meet the president right now. it is his second official visit. he visited as a prime minister in 2010. >> guy: what else is going on politically in turkey?

tensions are high. social media being turned off. all kinds of things being talked about with the administration. i want to know exactly what the story is. simin demokan: that's right for you yesterday, there was pressure on social media's platform where access was banned tell facebook, twitter, a youtube for not removing images of a prosecutor killed last week. the company complied and facebook and twitter said they -- appeal this. social media platforms have -- are up and running in turkey. it is not the first time the government has blocked social media in turkey. the government has passed several rules to tighten the social media and internet since 2013. the eu has criticized turkey over controls and say it is an attempt to curb freedom of speech.

it is ahead of the general election june 7. guy: great stuff. thank you. simin demokan joining us from istanbul. let's talk about the iranian sanctions. let's talk about the whole region and how it is changing shape in terms of political makeup. chief economist for central and eastern europe. he joins us now. good morning. let's talk a little bit about iran and the oil story and how that is going to affect your view of what is happening here. significant are the changes we're seeing now? guest: the changes are significant. economists always say [indiscernible] the agreement will be reached by june and then we can expect and then the iranians would probably like is right away, that is their wish. i do not think it will happen.

even for the process, the markets will [indiscernible] this is very bad news for some countries. once we have seen is an oversupply of oil. the u.s. continues to increase production. it is somewhat lower. if iran comes to the market and a situation we of been through over time, we are going to see additional pressure on the oil price. and this is bad news for anybody who is dependent on oil. and most of them in venezuela. guy: let's talk about energy and russia and link it back to the meeting taking place between erdogan and the iranians. i find the meeting fascinating especially when turkey is struggling to meet expectations are relations with russia. lubomir mitov: erdogan is in a

really tight spot. he has the war in the north and war in the south. if you look at the data though -- the past few months, the data is 13% of exports. lots of trade. [indiscernible] it is hurt. trying to diversify the energy supply. that is in important supply. they are trying to establish relationships with khazakhastan. in order to get better conditions. and i think i ran with energy [indiscernible] what makes sense is questionable. really pressure the russians to get other concessions like

turkey. not just to anchor himself politically because the relation with the neighboring countries is in a disarray right now. guy: how will who can play this? -- putin play this? how will he answer that one? and what he does with his energy sector? lubomir mitov: if you look at today's news big news in russia press a company to invest and the russian oil sector. it is a sign of desperation. a source of technology to help develop oil. it has nothing to do with turkey or sanctions. russia is not really invested in oil and gas. [indiscernible] they were able to sustain production.

and the investment in companies. and now because of sanctions, they cannot yet. guy: when do they buy? lubomir mitov: they will start at this year. 70% or 8%. if you list a russian executives, 20% of oil production. and nothing to complement it. oil and gas, they have started. [indiscernible] guy: it will really start to hurt year. 2017, how does it look? lubomir mitov: that's the whole point. everybody expects -- it will not happen. the russian company -- economy

has been weakened for years. the outflow of capital. it has potential growth of zero because they have no investment. and the productivity. 2017, a couple of things happen. oil production will increase bring second, safety valves will be off. by 2017, just before the 2018 election for the president putin faces a significant choice -- monetize or cut social spending. i expect a net zero growth for 2017. very difficult to imagine. maybe a little bit down. 1% but after that, facing stagnation and the current

policy. policies change. guy: i wish we had more time to talk about this. lubomir mitov, chief economist for central and eastern europe. the first word is next for for our viewers, a second hour of the pulse. we'll be looking at the fedex-tnt deal. tnt surging. maybe some people believe in the deal have some risk. of course, it does bring a big surge in the price. strong data out of china -- out of spain and the u.k.. not strong data across the eurozone. the euro beginning to fade a little bit. we have been down to 108. that brings us to an interesting question. deals being done in a cheap currency.

look at veteran's actions how big a deal will it be? we will be back in a moment. ♪

going express from the u.s., fedex by tnt for nearly $4.5 billion your ose. the former prime minister tony blair joins the frafmente he will be delivering a key speech in about a half-hour then the government tells the i.m.s. they will be repaid. will he find an ally and friend in president putin? going so good morning to our viewers in europe. good evening to those in asia

and a warm good morning to those in the united states. i'm guy johnson. my colleague francine lacqua is off today. so the greek's say they will make a payment by the deadline. hans, mr. tsakalotos decided to do this meeting face-to-face. what was he hoping to get out of it? they were assuming the fund would be repaid. hans: well, it was a two-hour meeting. it was a surprise that he went there first. remember there's some daylight between what the u.s. needs to do and he may have been seeking

allies. we know coming out of the meetings that he was looking at a way to come out of the climate -- he gave a an interview to a local newspaper saying when he thought -- yes it includes $1.5 primary -- and a big hefty investment from the european investment bank investing in greek european infrastructure. one final note. they are complaming march tax receipts were better than expected. going hans i don't see that there's a problem here because apparently the germans tow greeks for reparations.

>> they have come out and said that's a non-starter and in line with what merkel is saying. what's interesting is about this is we have a number and it's an eye-popping number. almost $279 billion euros, that's almost 40 of german's g.d.p. a non-starter. many ways the only real thing is it would poison relations between germany and greece. going for more on this greek story the relationship with germany we're joined by your asiaa groups. good morning. >> good morning. going so mr. seacrest has gone to see mrs. lagarde and now he is going to the russians.

how will germany feel about that? >> el, it's exactly in line with what's happened before. which means it's readvocating the credit ors and showing it has other sources of financing but i don't think it's been very constructive. going just changed the tone? >> yes. exactly. so maybe there's a discussion but just the way it's being done and the timing of sit extremely bad. going and that number is big. it is an eye-popping number. so what happens next if -- i've just been speaking to a member of seacrest's governor and says he expects different things to be played out here. >> well, i think from the german side the position is clear.

there's no flexibility. they need reforms and it needs to pass parliament and it needs to be credible that -- and if that doesn't happen then i think we might be looking at a much different scenario. going what does a dimmer scenario look like? >> i december it depends on at which stage the government actually seems to run out of money. i think what's important to understand is that from the german perspective, the german -- in 2012 when the greek crisis was really bad, the german viewed it as exiting from greece and would have catastrophic results. but greece is a minor country. it doesn't necessarily have to

have economic consequences for the rest of the euro zone and mabets better if the euro zone leaves so i think this is very dangerous for depreast. going we have really strong economic numbers on the p.m.i. so good news for spain but bad news for greece. >> that's exactly what it is. the youthfulness of austerity but from the german perspective, it's worsened. spain is -- it also means that the spanish government is very much on the german side as far as pressuring greece. going how do you think it plays out? most greeks want to stay in the euro and they were not elected by mandate so to the take it

out. again, -- what happens? >> i think the question at this stage islit be rather an accident? maybe both sides, depreast and the others depamible too much and we actually end up running against the wall instead of stopping at it. so i think an actual sfare i don't know would be much more -- and then it happens. there's no last-minute agreement even though both sides -- going men? >> then that's greek banking sector's problem. going so is there a view in germany that zpreek god and the

government -- i'm curious to know what happens in that scenario. if the government thinks it's just a tsipras government. because they elected that government. >> first of all, i think there's acceptance that this is a democratically-elected government and whether it's more difficult or easier than before probably not necessarily the problem. they didn't give some aras a discount so they are not going to give one that's been elected by the pop will you explain one. so it will remain the exact same same no mat wear

government is in place. going just to come back finally to the question of russia, how problematic -- the depreek's that were going there because we wanted to have a nice chat. but if -- is there a belief that the greeks are hedging their bets? is that a genuine belief? because they have nothing do with this? is there any kind of problem here if you just take the depeeks at their word? >> i think two things. i think probably there's are realistic assumption that greece doesn't have the money or willingness to them in a significant way. 10eu think berlin knows that. so then we're back at the problem of political messaging. even if they say it's just a regular visit and -- the

messaging is just -- >> but they would both like to know if there's annoying come out of this. >> then it's even more of a provocation. going but i thought we had moved beyond the provocation. it was strategy but then the strategy rallied for war. just from a -- it's like a game. so i'm kind of wondering what the game is now. is he really trying to antagonize germans? because that's not going work. so i just don't get what they are trying to do. and if it's just antagonism and just trying to rile the germans up, ok. fair enough. but is there anything beyond that? there's no plan b. here. thro they are just not trying -- i can't get my head around why they would do what they are doing. >> i think this is the --

what's been going on. even maybe there was a discussion. talking to russia, maybe greek and russia have a relationship that's important but caulk talking to them right now underthese circumstances where germany and france trying to keep an eye on what's going non ukraine it's just bad manners. going but are you surprise lessons haven't been learned there? >> yes. going thank you framke thank you for joining us. now the reserved bank of australia kept things on hold for a second month. meanwhile india's central bank

left interest rates unchanged as commercial banks there and non-performing loans and problems with their balance sheets have failed to pass on. all is fair game after the biggest rally. investors -- expecting unimprovement on demands. and bank and labor claims that families have been made worse off. it was said previously the government imposed taxes. today continue to -- with the economy comes the key battle ground in the campaign. the two main parties remain neck in neck. now still ahead, the turkish president.

we will talk gio politics. also coming up, express from the ssa the fedex decides to buy the company at any time t account. we will have the details of that deal. the question we are asking our friends this can is are we going to see more of these transactions? let us know @flacqua, @guyjohnsontv. we'll be back in a couple minutes.

going welcome back you're watching "the pulse." we're live from london. so iranian knew clear talks ended with an agreement but the white house stays terms and sometiming of the sanctions against iran are still very much in dispute. let's find out what's going on and what the view is from teheran. we are joined from teheran with our guest. how is the subsequent commenting from the white house being-seed? well celebrating or on friday night in charge numbers. but amongst the officials, the

note is very positive. we have the head of iran's security forces, a very important figure here praising the supreme leader for the efforts in switzerland. there's also some people on the hard lines of politics voicing their concerns and opinions. they don't understand why the parties had different statements to offer during different press conferences. mainly it's been around se man tick disagreements over the text. going let's talk a little bit about what's been happening over the morning. we've seen the turks and the iranians coming together at a very high level. what do the iranian's see coming out of this? is there a belief that the two can do business?

or is this going to be quite a catchy meeting do you think? gulnar: well, it's dot say because these two countries have a very strong trade relationship and they are very strong trade partners and signed a pact earlier this year aiming to increase trade between the two to $35 billion by the end of the year, which is pretty high. and that's very important for the two of them. turkey a major customer of iran's gas and iran also relies on turkey for billions of dollars worth of imports every year but obviously we have these ooh employeeo political issues in the foreground that are very important. syria. yemen. and statements that tavon trying to infiltrate the region. so i think it's too strong to

let a stop in the middle foreground affect that. going golnar motevalli joining us from teheran thank you very much. analysts as divided as ever on the price of crude and where it's going next. let's bring in bloom intelligence's guest. the demand sthire the saudis are talking about. >> yes. i think a lot of people were having quite high expect tases and somehow resolutions of these iranian talks sanctions. it won't go as quickly as everybody expects. that's also the reason why the oil prices jumped that much yesterday. lit take time for the iranians

to ramp up their production. most say it won't be that much a day. so postly the additional oil that may come from the market from iran will be 2006 so this is a more longer term development. u.s. shale and higher u.s. stock piles, this is a short-term development. right? they are very high. the u.s. canada, exporting any crude, because of the legal structure, so this is what is giving the bearish outlook. and of course you have the -- the nigerian elections, there is a minority in the niga delta where most of the nigerian oil, and there's concern the people there of the same ethnicity of the outgoing president may

return to arms since their president is no longer in power or their respective and this could interrupt nigerian oil supplies. going ok. so that is a positive for the oil price and we mentioned yemen. presumably that's a positive as well for the oil price. they will be worried about shipments. so it's not all negative right now. there's plenty of positive factories for the snoil >> yes. it depends on do you look at north america and their development which is rather bearish? or look at it more on a global scale? that's more bullish right now. going so you can buy contracts out many many months and many, many years. is that being reflective? for instance fetishes i look out, what am i seeing there? >> well one thing you have to

look at is the cost of producing oil. we always say that the rock bottom of the oil price is the marginal cost of production. and this is something like $90 right now but then you also have to take into account that a lot of engineers and oil -- say -- there is probably some cost efficiency gains to be made here as well so it might actually -- this marginal cost of supply may come down. going thank you philipp. coming up sending shares in the european country soaring. details when we come back.

>> we think this is going to be good for competition, because at the moment there's two very strong players and by putting tnt together we think we create a very strong political competition and that's why we think we will get apatrol. >> the word used did behaved binks. fedex to buy at any time express for a cool 1/3 premium that's why you're seeing the

shares surge this morning. now, it's all about fedex's boost. the key has been expansion in europe to up their profits so tnt express delivers that and there's not much overlap. of course fedex good on the overlay. let's have a look at the turnaround that's been going on at tnt express. because it unraveled united parsals -- it was offering 9 1/2 euros per share. it was struck back in january of 2013 worries that competition would be reduced but you had david brink there saying not so. they have still got to turn around this business and seems to be an airline unit of tnt express. you can see shares up 33%.

do join us that far quick break. back with "the pulse" shortly.

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going welcome back. you're watching "the pulse." my name is is guy johnson. my colleague francine lacqua is off for the day and should be back soon. larry somers has called the asian infrastructure bank a turning point in economic power. in a bog most, it may be remembered the united states lost its role as the underwriter of the economic system. they planned to start --

including the u.k., france and germany. thest mats from memory chips and display, a 30-year slump in shares. they are counting on the debut of the galaxy six model and turkey has unblocked social media after some were accused of aiding and abeding terrorism. for the markets, particularly european markets. stocks quite a lot higher. johnathan has more than to. >> we're back on trend.

the energy companies leading throughout morning. it may lend europe really that trend. peripheral bond markets. these are the moves. up 1% on the ftse may have been in italy and the big deal of the morning, we have been talking about it throughout last couple of hours and fedex buying tnt express. let's price anytime dollars at 108.53 on the euro. that was a $6 billion deal. the collapse of the euro making things a little bit cheaper for u.s. companies over here. valuation play? certainly. in booned market, bonds rallying, but the big news here in spain, the two-year is almost turning negative down one basis point.

a 0.02%. but they sold bills. spain joins the club. free money for the spanish government. i'm going to take you back to the market. the dates are out on the euro zone this morning. disappointment but germany beat and you've got say the data was still solid. 108.45. in the fx market it's here in the aussie dollar. the aussie dollar up by just over 1% right now against the u.s. dollar. some traders expected a big rate cut. they didn't get it. but the big news and headline in this fx market is not because the rba did nothing. it's because that move right there happened seconds before the rba -- prompting the

regular thriret say yes, we will be invest investigating that move. back to you, guy johnson. going thank you very much indeed john talking there about the tnt transaction. are european companies cheap right now? obvious thirty currency providing a nice window for the dollar-based countries to make acquisitions. tell us what you think @guyjohnsontv and @flacqua. let's talk about what happens next here in the u.k. things are starting to get potentially a little exciting. the polls still neck in neck. tony blair, the former prime minister about to get involved. what's happening? what can we make of it?

rod hutton joins us now from our government team. rob, we've talked before in the past about how things will start motoring after easter. are we already seeing that? rob: well, they are partly because parties took the view that nobody's really thinking about the election in the country before easter they are really just thinking the easter holidays. but now we're past easter and seeing the first signs of it. we have tony blair making the most of it and george giving a press conference in london that's just finished. so i think next week when the schools go back and people really start to engage with the question, you will see a step up again. going does this mean we are going to start to see momentum

in the polls? rob: who knows? going but as we start to see the conversation speed up is there an expectation that we will stay where we are? rob: they think that at some point polls will engage with the question. that's what the toris think. labor think that as they are now showing off really to many people for the first time noticing that the leader of the party is -- because there's a lot of evidence that voters switch off between parties during elections. so you saw last week then up dennis cameron the week before so they will say actually this guy is quite interesting. he's got some things to say so they will see the polls moving

in that direction. but both labor and conservatives are edging up a bit at the expense to have smaller parties so they are tiny but still neck in neck. so a tenth of point apart in the polls this morning. but they are both -- both sides are trying to squeeze the smarle parties so david cameron said last night it's time to come home. he wants to squeeze his voters. ed middle band's words were there's only one prime minister. it's not the greens or s&p's it's me. a little bit of success maybe with the greens. probably not much success with the s&p's. so they now add up to 67% and my go north of 07%. but if they both tied it's really hard to predict the election. going the seven-way debate, my

sense was it really didn't move things that radically. but people were wondering whether ed middle band should take part in movering things around. you talked to to people. how nervous is labor about this debate? rob: well, if you talk to the liberal democrats and the toris. may can't believe ed middle band is taking part in this. this is a debate what is called the challenges debates. it's thursday week and all the opposition parties so it will be nicholas sturgeon of the s&p and the greens and ukipp and essentially all of them will be throwing abuse at miliband for an hour and a half. from the point of view of the libertarians and the democrats it will be oh good for us. new b s&p thinks exposure

works for them and miliband was thinking that was good for them. that he was the grown-up in the room. going how do they feel about blair getting involved? rob: between ed milimband's office and tony blair have a very strange relationship. tony bare thinks you put your tanks there and let even else challenge you. ed millieband takes a view that after the financial crisis the pub slick more skeptical of free markets. more skeptical of business and wants protections and blair's

slightly les affair attitude is not where the public is. that said, labor feels it needs to have the endorsement of blair. i was told sedgefield in the northeast of england, i was told about it at midnight last night they are not going it in a way that makes it easy for journalists to go and cover it. i don't think they want lots and lots of questions. so there's a judgment that blair is doing the minimum that he can do. it's -- the blair endorsement of ed millieband is he has shown he is his own mandatory and stood up for himself but stops short of, i think this is the best man on the block. that said, blair is extremely rude in his speech about david cameron and the conservative e.u. referendum.

going it's warming up. rob: certainly is. going rob, thank you very much indeed. rob hutton. we'll take a break. back in ooh couple minutes.

going welcome back. 43 minutes past the hour. we're live on bloomberg

television. startups that own billions before going public. they actually got to go public. that's the critical thing. in recent months we have seen fundraising. our next guest has strong track record for spotting such ewan corns. he was firns investor in skype and the ceo of man grofe capital partners. mark, welcome. mark:going thank you. the ones that include the word ewan corn. the prop would be verrett callus. why is so many people excited about ewan corn? mark: in our firm we call many of these fakeys.

it's a bit like celebrating a finals cup before you've actually won it. we believe companies that raise money, they are good. take it but be humble and if you're a ewan corn take it and sell your business. >> i think it will be a combination of both. some of these companies have the full potential to become a ewan corn and be valued when they go public and are sold but some of those and we have an example fab.com up to a billion in valuation and sold for $15 million. so at least half are fakeys. going any others?

mark: shazam in the u.s. and -- going sit the business-month-olds are wrong? mark: with many of these the business model is shaky and they are not offering scrute any so it's difficult to look insides but in the case of shazam if you have 100 million users and you have not gone public it's questionable whether your product is strong enough. going do you think shazam will go public? mark: i love the service but i'm not how great of a company it offers. going i guess it depends on how much somebody is prepared to pay for it. mark: i'm 100% convinced if i look at these companies many are fakeys and many are not but there's a tendency of companies to take too much credit before the they deliver the goods. going do you see a bubble?

mark: i don't see a bubble as we've seen in 2000. i think we see an exuberant overexuberant group ready to jump in on these companies. it's like a lottery. they are jumping in hoping one hits. going how different is the startup, scale-up scene? because we are seeing u.s. money coming into europe. mark: europe has a huge increase. we are great entrepreneurs but still behind of the u.s. in terms of aggregate amount of money and startups and investors. but i think we're progressing and have done a good job. going where does pun lie? where you need to be? mark: our firm is focused on two things. one is we saw the wave of

ecommerce where people are selling goods online. uber is one and we invested in a company that helps find cleaning ladies. i think that's one great trend and the other is a financial services industry which is in denial about what the internet going to do to them. going what is the internet going to do to them? mark: basically take away -- the tsunami of the internet has the financial systemhits in sights. going how many companies do you see here that are going to deliver decent vals? because syntec rarely makes the headlines. other disrupters make the headlines because we all need taxis and cleaning ladies or cleaning men.

mark: transfer wide attacked only a small portion but we're seeing lending businesses pop up so we're beginning to see the industry being chipped at bit-by-bit so nothing is going to attack it globally and i think whether he see billion-dollar businesses coming out of it. going how digitized is it? mark: right now poorly so this is why they take away the fact in the industry. telecom is a great proxy if you think about it. back when we funded skype voip was expensive. within five years. now seven going to go after data because who wants to pay

lot to access the internet from your mobile own? and the industry needs to make sure you're careful. going i was going to say how fast will it slow down? mark: but it's like a waive, you can't stop it. going given that, do you have to change your investment strategy? did whole nature of the way you invest change? mark: i think generally these ewan corns, there's a seven to eight-year journey. skype was five years. western lucky. as we build up this billion-dollar valuation. today we seem to think a billion dollars is not a lot of money. five years ago a billion seemed like a lot and today it doesn't. so it will be eight to 10 years

no matter how you cut it. going so do you think in -- going guy: so how does the nature of the global economy change what you're going to do? mark: i don't think it does. because when you're looking at the amount of capital sitting out there. venture capital is really a tiny piece of that. so i don't see it changing dramatically. guy: so you don't think it's going to get hard to raise the money? mark:today pendulum has swung to a point in which it's too easy for them to raise money. guy: thank you. mark tluszcz joining us from man grove.

whether he look at the meeting with vladimir putin when we come back.

guy: good morning. welcome back. you're watching "the pulse." live on tv and on your tablets and on bloomberg.com. hans nicholas is in berlin. hans so we're building up between this meeting between

the greek prime minister and vladimir putin withsi crass making a statement today. hans:they may discuss some sort of discount on gas funds. it's just a question of what's going to be happening in return. there was earlier reports of talks of swaps. the meeting takes place tomorrow. mr.si practices -- europeans in particular what mr. tusk is going to be looking for is any breaks in sanctions visa have i the ukraine. if there isn't unanimity among

officials it seems they will expire but we have not had any firm indication from cry priss or anywhere where they are trying to have -- guy: what is the game here? what do they want? hans: they are going to say they want to have open discussions and we will see if they mention sanctions but see what they seitan gas issue because that's probably the most important. guy: mr. hans nichols, thank you, our international correspondent joining us from berlin ahead of interesting meetings between the greeks and russians. that's it for "the pulse." for our u.s. viewers, it's surveillance. tom keene and his team is on his side of the atlantic. i will be back with bloomberg politics tony blair delivering a speech this morning saying it's completely unacceptable to

gamble with our future. we will discuss that and all the other politics story. more when we come back. ♪

tom: mayor emanuel with the commanding lead in chicago. i divide on who can lower crime. social with monet -- the met revolutionizes access to art. good morning everyone this is "bloomberg surveillance" live. let us get to our top headlines with olivia. olivia: a few hours from now that rand paul will make his formal announcement at noon in louisville today it paul is a favorite of libertarians and the tea party. he gave us a hint of what his campaign would be like with a video released on youtube. >> we