>> after a week that saw the world of football rocked by scandal, seth blatter attempts to win his fifth term as president. but his former special advisor accuses him of serious mismanagement. >> his management of fifa was not free of corruption. he gave away the tv rights for $1 then maybe it's not corruption but serious mismanagement. anna: creditors say a deal to

unlock aid is not imminent. with that issue still hanging over the g-7 finance minister summit, we'll be speaking to the european union economic commissioner later in the program. mark: the japanese economy limp into the second quarter. the central bank's key inflation gauge slows to zero. anna: embargo technologies agrees to buy broadcom for $37 billion in the biggest acquisition ever. >> welcome to "countdown." manus: y.p. mor began job cuts

we'll have de-- details later. caroline: fifa will vote for the next president of the body. several officials were arrested. manus: his former advisor has accused-of, quote, serious mismanagement. mark barton is outside the the headquarters in zurich. the vote is set to take place today. what way are the lobbies shaping up? mark: this is it manus, it's david vs. goliath. the brother of the king of jordan, the youngest fifa executive, the youngest vice president at the age of 39. the incumbent seth blatter

four-time president. will it be five? he has the majority of the national association behind him. he brought africa the world cup. he's got ticks from africa. south america supports him. uefa will be hoping they d. uefa will get a boycott they decided pressure is best from within. they'll take place in today's vote. they're supporting prince ali. >> i must stress that those who are corrupt in football are in the minority, like in society, but like in society, they must be caught and held responsible for their actions. mark: it's very simple. one vote, one national body, 200

national bodies out there. that means montserrat with a population of 5,200 has a population of the likes of brazil. blatter focuses on the smaller country the kayman islands, the montserrats of this -- the caman islands and the montserrats of this world. caroline: you've spoken to a number of high ranking football officials. what's the mood like in zurich ahead of today's votes? mark: shock. shock and awe, caroline. i was here yesterday at the hotel where the uefa federation meeting was taking place. it was a scrum there i spoke to michael van prague who of course until a week ago was running against sett blatter. i've spoken to the head of the italian football association as well. it's been such an exciting 48

hours here in zurich. let's listen in on what some of those officials had to say about the incumbent, sepp blatter. >> the right way is to give the vote to the other candidate. i believe that outside of europe, he has a better chance than me and if you add up the votes that he's going to get today and maybe some other confederations, he has a chance. so we should take that chance. >> it's time for change. it's not a question if he is in some cases, if he's guilty or not guilty involved or not involved it's time for change. because they need, fifa as an institution, its credibility and integrity. that is difficult maybe impossible to do if you don't have a change on the top.

>> in the end it's not so important, it's important to have policy and structure helping football to develop further. >> we are going to vote for the person who we think will serve football in the best interests. mark: 9:30 this morning local time is when officials will start arriving here for the beginning of the congress. the vote will probably take place later this afternoon, a 2/3's majority is needed and it's a -- and if a second round is needed just a simple majority. blatter is the overwhelming favorite despite the scandal that's rocked world football. i'll be here throughout the day. back to you in london. caroline: mark barton in europe full of beans this morning. manus: growth greece and the creditors. creditors warn a deal is not imminent and have demanded the

debt rah vadged nation make stronger commitments to overhaul its economy and strengthen finances. in a growing sign of concern greek prime minister held an hour-long call with the jer nan chancellor angela merkel last night. hance, you know, a crisis call of an hour at the political level but the problem with these negotiations is detail detail detail isn't it? >> it's detail but there's very little optimism of progress here. yesterday they said they're not even three quarters of the way there. later, in an interview with a german newspaper mentioned the potential, at least acknowledge the potential of a greek default. earlier they reported that it was possible that greece would.

she issued a transcript to clarify her remarks. i'll read that to you to be clear on what she said. i hope the europeans will not have to face, and this is the question of a greek exit, because hopefully they will find a path to agree with the future of greece within the euro zone. but you know it's a potential. that has caused at least some concern, the i.m.f. is acknowledging the possibility that greece could leave the euro zone. we have some optimism here. most of that is coming from the economists we have been speaking to. yesterday we caught with rabini who seemed to suggest that magically, new money would be found. >> i do expect that money will be found in june to make sure that the $1.6 billion is going to be paid between june 5 and 19 and hopefully by the end of june, there can be an agreement on structure, on the condition

for closing the review of the second program and the basis for the third program that greece needs. >> it's sort of contingent on growth, the idea that if you do have too much debt you may not be able to grow. one possible way out of it, an official from the i.m.f. hinted at this, you would reduce greece's long-term debt but also have something in there for them. and that would be there for them. then you'd have pension reform that clearly is what greece needs to do. they've been clear on this the i.m.f. has, as well as meeting medium term debts at target. we're seeing indications of a deal but no indication that the two sides are coming together. manus: the next date on the calendar, june 5 $00 million is due is that the firm date? is that the technical default

date? >> well, e.u. officials are hinting they want to have a deal by june 5 but here's the deal, why there's a little give on that june 5 deadline. yesterday the i.m.f. act knowledged the possibility that greece could bundle their payments into their last payment later on in the month in an obscure rule in the i.m.f. from the 1970's, last used in the 1980's. fwreast hasn't said they'll avail themselveses of that rule but if it looks like you have a deal on june 5, the actual money wouldn't need to be transferred to the i.m.f. remember, total payments for the month of june are about $1.5 billion injure -- are about 1.5 billion euros. remember manus, our first rueful covering any greek debt crisis there are no deadlines. manus: thank you for that coverage. 6:45 we'll be speaking to the european economic commissioner life from dresden.

stay tuned for that conversation. caroline: the japanese economy limp into the second quarter. household spending fell and people left the job market. indeed the central market's key inflation gauge flowed to zero. james is in tokyo with the story. james is there any sign inflation will actually start to pick up to where the bank of japan wants? certainly they've been insisting that it will as oil prices start to rise again. james: no, we're not seeing any indication that prices are going to start rising as the bank of japan says. as you said, the main gauge for them, for the bank of japan is zero. even you trip out the effective energy prices from consumer -- from the c.p.i. numbers, it was still only .2%, slower than last month. so you know, there's no indication that the prices is going to start picking up in japan and there's no indication that the lower energy prices and

lower costs for consumers is flowing through to increased spending which is one of the things they said is going to happen. as you said in the introduction household spending fell. that's actually the 13th consecutive fall for household spending. households cut spending last year because of the sales tax increase and expected that once that happened, once that finished, in april of this year they would start spending more and become more confident. but you know, the data we saw today, that's just not happening. caroline: sadly, the yen still at a 12-year low. we're also seeing today data, first look at the second quarter. japanese economy did grow 2.4% annualized last quarter, better than expected. what about the next quarter do you think? james: i mean, there was a small pickup in consumption in the first quarter and -- but as we saw in today's household

spending is down. industrial production grew for march but it was lower than it was in april of last year. so the data we have for the second quarter now, not a good, not strong indicator for continuation of growth in the second quarter. i mean, the -- the growth will probably continue but it's definitely not going to be the strong rebound that the bank of japan or that the government is hoping for. caroline: james, thank you very much indeed. mamu; -- manus: j.p. morgan will cut thousands of jobs over the next year as the bank seeks to contain expenses. the biggest u.s. bank, j.p. morgan has been consolidating back office, cutting mortgage workers and reducing the ranks of tellers as most customers use mobile phones and the internet.

google has unveiled the latest enhancement to its drind mental system. it included making its google services available at all times. including when users have another app open on their phone. as consumers spent more time on mobile devices, google hopes the changes will allow them a bigger share of their attention. president francois alaund said france wants the u.k. to remain part of the european union that came as he hosted david cameron yesterday. cameron will continue his tour later today. we are there. caroline is probably in like flynn. i'll find something to tweet. caroline: you go and put your

penny's worth in about japan and the latest thing catching your attention. coming up after the break, we take a look at those japanese inflation figures or the lack thereof with swiss growth banks ahead of market strategy.

caroline: new data this morning

shows the japanese economy limp into the second quarter. let's get more on that from peter. how does this affect the yen? does it continue to weaken at a 12-year low? peter: we think it's going to continue. i think if you look at the inflation, the dynamics in japan, we expect it to further weaken and go into deflationnary territory. i think the economic situation is limping along, we're seeing, you know kind of weak consumer spending. kind of seeing the labor market come down slowly. it's not picking up the growth that many people expected. we expect that to start trickling through into inflation and going back into the flationnary territory. ja span in love with the q.e. the b.o.j. will have to step in with more stimulus. they're not going to step back

and wait for the third arrow to materialize. the b.o.j. is what's keeping the japanese economy on track. they'll have to turn back to the b.o.j. so get more of that stimulus. manus: the dollar has -- is rising now, it's up by an eighth, these things always turn around. it all started on may 22, slightly higher inflation data. are you a dollar bull? we got g.d.p. today. peter: we are dollar bulls, we think the recovery story in the u.s. is intact. we saw a q1 much weaker than expected. today's second revision will be lower. but the main april data, the housing market, the labor markets are still extremely strong inflation number at the core of 1.8, solid number, only a matter of time before the capacity in the labor market is going to be so tight. we'll so a push through into

wage inflation that will force the fed to move in september. we remain solidly bullish on the dollar. caroline: does corporate profits not worry you? there is a concern that we price will come down and they'll stop investing. does that concern you? peter: absolutely. a strong dollar is a significant issue. i think that's probably the primary reason why the fed hasn't moved aggressively on rates. the u.s. has recovered significantly by having a weaker dollar and the fact that it has strengthened in the last six or eight months man detrimental to the growth outlook, especially things like earnings. the fed needs to manage that stronger dollar. that's going to be a key concern going through the summer. manus: that stronger dollar is a bit of a gift for some of the other central banks that had to go into a different mode since the start of the year.

do you think we're at the bottom of the cycle? peter: i think it's interesting to mention the dollar sort of change of fate. they really were the ones who triggered this sort of covert currency war back in 2009 and they reaped the benefits by having a significantly weaker dollar. now that the dollar is stronger, they're paying the price. it's -- it shows the double edged southward nature of competitive devaluations and covert wars. i don't think we're done with anything especially in asia. that's the problem right now. exports in that region are going lower or falling. we're seeing prices considerably weak. we're seeing investment slowing. and it means that you're going to have a regional concern between nations, maybe not against the dollar but a competitive currency war, you're seing the bank of thailand acting, ma lay shah acting. it's going to be that, they're

going to have a small term regional currency issue and australia is very much caught in that situation. i think we're not done with the cycle in asia. caroline: peter, great having you here. thank you very much. head of market strategy at cisco bank. manus: up next details on the biggest technology takeover yet in history. you simply don't want to miss it.

manus: they agreed to buy wireless chip maker broadcom. linda is here with more. $37 billion. what a corker. linda: exactly. a whopping deal. it's going to be a game changer this etee would create the world's sixth largest chipmaker and expect it to be finalized by early 2016. it's the biggest technology deal of all time. $37 billion worth in cash and stock 16% premium to broadcom's last close. avago may have overpaid and even though avago says it's hard for another country to match the bid, they're still paranoid there would be a competing

offer. i believe call come and intel have been in discussions with broadcom but it appears avago has made the mor serious bill. if you're wonder, avago makes chips for things like smart phones computer net works. it's grown as a company. when it i.p.o. eid in 2009, each avago share was worth $15. now it's worth -- each share is worth $42 and change. it's doing something right. that's probably the aggressive strategy of gobbling up its rivals. manus: linda thanks for the details on the deal in singapore. caroline: huge isn't it? coming up, seriously mismanaged. that's how sett blatter's former

advisor describes his bid for fifa presidency.

>> every time you lather up with shampoo.

manus: welcome back to "countdown" this friday morning. the big move started in dollar a couple of days ago, but here we are this morning trading virtually flat at the moment. over the past 30 days, you begin to understand, may 2 is when the con -- may 22 is when the consumer price index came in. yell lynn pulled the starter gun -- yes lynn pulled the starter -- yellin pulled the trigger on

tissue starter gun on changing that. expect a contraction of around .9% fpble what might that do to the dollar story? as you can see, we're trading virtually flat at the moment. the rally is just drawing to a slight pause. what happens next with dollar-yen? that's what we have at the moment. down an eighth on the dollar, yen rising slightly. no inflation it's flat. dead. zero percent flat. where do we go next? ary partners are the most accurate forecasters on dollar-yen. they say you've seen nothing yet. get ready for 132 by the end of the year. the bank of japan is nowhere near tone. other side of the coin, bank of tokyo and mitsubishi say 125

your lot. have about 1.2 left of the run. city fwrupe say 126. will the bnk of japan go into ult tra -- ultra additional easing mode? some say they're close to a deal. some say thear not lose to a deal. christie lagard has to have clarification on the nuances of the language she used overnight. greece is the word, excuse the pun. options will drive drive where the options end today. in the the yeats of america, huge option positions open. nearly $2 billion worth of options open at a 109 strike. will it push the euro-dollar down to 1.09 versus the next biggest open interest? or it could be that tpwhreast manages to pull one out of the bag one way or the other. would you go into this weekend

with a greek open risk? that's point. caroline: thank you, manus. let's check in on other top story this is hour. groast's creditors stay a deal to unlock rescue aid isn't imminent and the country needs to make stronger commitments to overhaul its economy and strengthen public finances. european commissioner says work was needed day and night to resolve the situation. japan's economy has limped into the second quarter with a host of poor data as well as a drop in household spending. people left the job market and inflation fell to zero. consumer prices excluding last year's sales tax increase were unchanged from a year ago. science fifa's 209 members are set to vote for their new president at the meeting in zurich today. the election come in the wake of a corruption scandal which has

seen several officials arrested on corruption charges. blatter, standing for a fifth term is being challenged by prince ali bin hussein of jordan. to avoid a second round of vote, the leading candidate must get 2/3's of the votes cast. let's get more on fifa's fallout. mark barton is at the scene with the late nest zurich. i know you were speaking to a myriad of people yesterday and soaking up ethe excitement over there. mark: it's been an incredible 48 hours here in zurich. we managed to speed off to the shores of lake zurich yesterday at lunchtime and i got an ex-crewsive, explosive interview with a man named guido tognani, a former fifa executive who worked for fifa in two stints between 1984 and 2003. during that time he was director of communications and wait for it a special advisor to the

current fifa president, sett blatter. i asked him was he surprised by the timing of the u.s. department of justice investigation? >> was surprised about the exact action, it was very well prepared a secret. like james bond. police came secretly. they put them out of -- pulled them out of their bed. didn't expect this kind of early morning thing. mark: is fifa corrupt? >> fifa has -- as an institution cannot be corrupt but some members are corrupt. some people working there are corrupt. mark: have you encountered corruption by members of fifa? you worked between 1984 to 1995, 2001 to 2003, did you encounter

corruption? >> it was funny, you know, everybody more or less knew what was going on but there was not the sensitivity there is today. we -- mark: it was normal behavior. >> it was normal behavior. we all knew that the i.s.n. had a very privileged situation. but it was nothing. it was like a taboo scene. nobody spoke about that. it changed when the scandal broke out and we knew it. mark: why hasn't anything been done? >> you have to ask the experts. everything was leading well with this. everybody was happy. there was taking and giving. some people were described and in exchange fifa got rights for fifa to make their business. there were no losers in that game in those days. mark: 14 official people have

been endieted. could this go on and on and on? are there many, many more corrupt officials? give me numbers. >> i don't give you numbers because you have to go from continent to continent and 9/11 europe you'll find some. the f.b.i. action was concentrated on the american continent. and it was concentrated on action which is these people were committing in their function on their continents. mark: you're saying there's corruption in all confederations? >> we have to face the fact that in all parts of our life there is corruption. there's corruption in sport, and in other sports outside of fifa, outside of football, you find even worse corruption than here. but of course people are especially sensitive to corruption at fifa. mark: it almost loses its power by saying it hundreds of times,

corruption, corruption corruption. is that what happened? >> no, it was not mentioned. never proven to be corrupt. he's the smartest guy of all of them. he was never -- there was never evidence that he would be corrupt. if you think that corruption is, if you use the corruption of taking money an giving money. of course the management of fifa was not free of corruption either way. he writes a dollar to an airline, maybe it's not corruption. it's serious mismanagement. >> do you think it's serious -- do you think this serious mismanagement might lead to his down fall if some of the officials who have been indicted start to speak to investigators? >> it will not help to strengthen his position in fifa which gets weaker day by tai. mark: what's he like? you were his special advisor.

>> he's a charming man, he's a friendly man, he can be extremely charming. he knows how to treat people very well. he givesern the feeling that he's extremely important for him. therefore he's so much liked among all the federations. the national associations like him -- mark: do you like him? >> i like him as a person. i didn't like the way he treated me. mark. how did he treat you? >> he kicked me out twice without any specific reason. just for political reasons. mark: do you have a grudge? >> what is a grudge? mark: in grudge -- in england a grudge is, you're getting your revenge. >> no, this does not give me special satisfaction. people speak about fair play and responsibility as blatter does, then you get a lit provoked.

i don't know what would change. i think now thee the people are here, the facts are known what does it help if you postpone the action by one month or so? it doesn't help a lot. if you postpone it by one year maybe, i don't know. but a short time doesn't change a lot. >> he's going to win. >> as it looks today he will win, yes. mark: tomorrow? if something happened? >> you never know. we have so many surprises in the recent 24 hour, you don't know. >> the system is such that you cannot take out incumbent president. it's extremely, extremely difficult, not to say inpossible, to out vote an incumbent president who is still in charge and wants to continue in this mandate. mark: who could reform fifa?

maybe the next president in four years? who could reform fifa? >> it's difficult to say but we have more than seven billion people on earth, i don't think that only one can manage fifa properly, you know. i think the selection process should be done. we have people in the national associations, we have people in the clubs. who know enough about football to manage fifa. >> would you like -- who would you like to be the president? >> i would like to see an icon of football to be the president. a figurehead. mark: whether it's an administrative person or former footballer? >> a former footballer, why not? a form of clean football, that would be good. people who have had wonderful careers, they could manage fifa. mark: former fifa executive and special advisor to blatter

during the period from 1984 to 2003. he said fifa isn't corrupt but some individuals are. it hasn't been proved that blatter is corrupt he talks about serious mismanagement. just one more point after the interview, you haven't seen the part, it was during the interview, but the part of the interview that wasn't shown then he, said something i hadn't heard. he said that blatter didn't want the world cup in 2022 to take place in qatar he wanted it to take place in, wait for it china. but china, of course, wasn't one of the contenders. they didn't actually submit a candidateture for this that process. he didn't want qatar to have the world cup. an excuse i interview from a former fifa executive. that's the latest from zurich. caroline: mark barton, not working -- not rocking the

sunglasses. manus: he's having a much more exciting time covering fifa than i am. well done, barty. king of zurich. join the conversation, we're all on twitter there. i'm@manus. caroline: up next we're speaking to the european economic commissioner live from dresden, taking it back to big questions. stay tuned.

manus: breaking nice from switzerland on the economic side the swiss economy contracted. the estimate was for the economy to remain flat. of course during the first quarter we saw the swiss national bank abandon the peg to the euro, that's the pressure -- that put pressure on the banking system, put pressure on the exporters, watch exporters. so gross domestic product contracting, the outlook for the economy suffered a blow when the frank cap was abolished. the frank rallied 15%. that's biggest increens since single currency was introduced

in 1999. top stories on bloomberg at this hour. more money changing hands in trading stocks in china than in the u.s., a market more than twice its size. turnover in shanghai rose to $380 billion exceeding the value of shares traded in the u.s. on wednesday by $132 billion. equity volumes in china have surged since late november. the former porch fweeze colony of macau saw its economy shrink by 25%. that's a slowing. president hollande said he wants the u.k. to stay -- remain in

the european union as he hosted david cameron. the british prime minister will continue a tour tomorrow with a visit to angela merkel of germany. caroline: let's go to dresden. >> i am joined by the economic minister. we'll get to greece in a second. give us a quick take on the mood there on tpwhrobal growth? >> the mood is positive. i have been sitting here in the g-7 for several years and it's the first time the g-7 in the context of a recovery and the question that was raised, is raised here is how can we have durable greth, strong growth and a growth which is stable to create jobs and reduce

inequalities. the keyword is structural reforms. everyone insists on the fact that you have a cyclical recovery and we have one which is now firm, you need to strengthen structural reforms in sectors like labor markets, like financial sectors, or to boost investment. that's what the commission tries to do with the plan of $350 billion euros. >> overlaying that optimism is concern about greece. what kind of status update can you provide? >> we didn't talk about greece here. they wanted an open debate between the seven members of the g-7 plus the institutions here, the i.m.f., the e.c.b., the commission which i represent on growth. but of course we know that the greece is a preoccupation. i would say that today there is work in progress. we make good progress on greece in the last few week. maybe more than in the previous three months. and we allow talking on

substance, important reforms. at the same time, time is running short. we need to speed up in order to get to this agreement that we all want and the second thing is that although there is progress there is still a way to go, there is still some more progress to be done and some substantial reforms that need to be delivered to have a comprehensive set of reform which is is necessary if we want a good agreement. >> does that include pension reform? >> yes, we started discussing on pensions but we're not yet there. >> for creditors, is pension reform a red line? >> i'm not entering into details because the discussion is global between three institutions, the i.m.f. e.c.b. and the greek government. as long as everything is not concluded, nothing is concluded. >> yesterday you said the good negotiations aren't three quartest of the way there?

are they halfway there? >> i didn't want to sound over optimist ex. yes, we want that deal. yes we can have that deal. it's possible tsms doable. we are working hard on it. but there is still i would say, consistence. substantial way to go. we must do more. some teams in brussels are working day and night to find that agreement. there is still work to do. that was my message. let's not be over satisfied with what has been done. yes, good progress, but more needs to be done. >> you talk about deadlines and time running short, when does the e.u. want to see something? when is the drop dead deadline for the. u.? >> i won't give a deadline. it's clear that we need to speed up, that time is running short. everybody is aware of the problems of liquidity in greece they exist. the only ones who know exactly

how big they are, are the greek authorities. but yes, it's a question of days, of weeks, you know, that whatever happens, the program, the present program ends end of june and if we want to do things before, we need to have parliamentary participation. >> you just said only greece knows the issue of liquidity. does that mean the e.u. commission is flying blind here? >> no, the european commission, again, the only legitimate authority that can deliver on that is the greek government. >> when you talk about parliamentary maneuvers, are you talking about a potential bailout practice, potential new money? >> i'm talking about any kind of agreement. the commission has a very systematic approach. we believe we need to first review the second program, to conclude from them to be capable of talking about further arrangements. let's not confuse those problems, those challenges. each of them is quite difficult,

delicate. but each of them can be addressed. >> i'll give you a pre-- reprieve on greece. let's move on to currency basket. how much conversation is there to bring in the e.u. to special rights? >> we didn't talk about that. >> when you look at currency instability, some weak currencies out there, how much is that affecting conversations about growth? >> again, we didn't seek about currencies. our main purpose here is to know how structural reforms can create more growth and create more jobs. that's the main preoccupation. the legacy of the crisis, the post-crisis mood we are need to build a new order, a new world which is capable for long period of having growth but also with stability. and both things move together. and we also spoke yesterday about taxation issues because as you know, the g7 countries are

involved in the fight against tax evasion, tax fraud, erosion of property. we are really concerned by that. the g-20 stuff. the european commission with its proposal on automatic exchange of information is in the front line. >> you certainly are on the front line today sir. we'll have more conversations. i expect greece will continue to come back. we did hear about the time pressures there. we'll send it back to london and we'll dissect it with talmudic exactment about what he meant with regards to greece. caroline: hans, thank you. manus: nigeria's new president will be sworn into office later today. the 72-year-old former military leader beat the incumbent in the

election with promises to defeat the uprisings in the north. let's speak to gavin about it. this is an incoming president who has got big issues. oil prices are falling. his coffers aren't exactly full and he's promised a lot. what's his priority? gavin f. you rewind back to the election this is an election delayed because of the worsening violence in the north. that was priority number one as a former military leader. he had credibility to crush boko haram which killed 13,000 people in the last few years. that can't be underestimated. but momentum is on his side there. the more challenging problem for him than tackling terrorism is tackling corruption. because that is endemic. when i was in the country, i personally witnessed a taxi driver being violently beat bane policeman trying to extract a dubious fine. a thend former central bank

governor points to the national oil company, nmpc which has been withholding billions from the national treasury and a report recently bore the thrust of that out saying that this was a company that basically had a blank check to spend system of that's priority number two. priority number three has been something that's come up in the past few weeks and particularly this week which is the shortage for everyday nigerians of fuel, of energy. nigerians are used to going for hours on end without elek triss by the week, we see planes being down. 18-hour queues at garages for fuel. caroline: what of investors -- what are investor, businesses wanting to see? we've only got a few seconds. gavin: the priority there is, they crushed liquidity.

they can't get involved in the domestic bond market, that's something that's unsustainable. then you've got budget problems as you mentioned. shortage of oil revenue. manus: ga vin, we have to leave it -- gavin, leave it there. join us next hour.

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manus: after a week that saw the world of football rocked by scandals, said letter intends to win his fifth term as president. his former special adviser accuses him of serious mismanagement. his management of fifa was not free of corruption. if you give away the rights for one dollar to an airline in exchange of votes, it is serious mismanagement. caroline: greece's creditors worn a deal to unlock a is not imminent and demand stronger

commitment on economic overhaul. pierre moscovici tells bloomberg time is running short. manus: the japanese economy limps into the second quarter. as spending slumps, the central banks key inflation gauge slows to zero. caroline: a chipmaker buying another in the biggest tech acquisition ever. manus: welcome to "countdown." also coming up on the show today jpmorgan, the biggest u.s. bank by assets is set to cut thousands of jobs. that's according to a person with knowledge of the plans. we will have the latest details. caroline: first, fifa members

will vote in elections for the next head of football's governing body. it follows a week of drama in which several officials were arrested for corruption. mark: support for bladder extending his reign at the top appears years to be weakening. in an exclusive interview, his former advisor has accused him of serious mismanagement. mark barton is outside the building in zurich where today's vote is set to take place. what a phenomenal 48 hours you've had in zurich. you've been gathering the opinions taking the pulse in terms of his ability to win this election. lay the roadmap out. manus: -- mark: it is happening. it is happening right here. the officials will start arriving at 9:30 local time. the congress begins today. the vote that matters, the

presidential vote will take place this afternoon. to win, you need a two thirds majority. it is david versus goliath. david is 39 years old. he's an executive committee member. goliath, we know is sepp blatter. he is the incumbent. he said after winning his fourth term he wouldn't run again. he is running again. the election has been overshadowed by the u.s. indictment of 14 officials on charges of racketeering, money laundering all sorts of charges. blatter opened the ceremony last night. >> i must stress that those who are corrupt in football are in a minority like in society, but like in society they must be held responsible for their actions.

mark: let's be frank. it adds up for one person, and his name is sepp blatter. there are 209 member associations. every single one of them has an equal vote. that means sepp blatter doesn't need to focus on brazil. he doesn't need to focus on germany. just as well, because the ruling body in europe doesn't like sepp blatter. sepp blatter focuses on the smaller nations, the cayman islands. these nations have thousands of inhabitants. brazil has 200 million. that's why bladder has focused on this nomination. that's why blatter is favorite to win today. the ruling body in europe said it should boycott the election. it said the election should be suspended. they decided they would take

this opportunity to force change from within. caroline: all about tactics. you've spoken to a number of high-ranking officials. give us a sense of the mood in zurich. manus: we -- mark: we've spoken to a lot of officials. we've spoken to the head of the italian football association german, dutch, barbados, palestine. we tried to get as much sound for you as possible. it is shock and horror after the indictment by the u.s. department of justice. some of the allegations are absolutely astonishing. bags in paris hotels stashed with $10,000 piles. here's what some of those people had to say about sepp blatter. >> we've never had this before. there's only one chance.

we need a change, and a change means that we have to vote. >> after all this what happened in the last 10-20 years, you cannot say, i'm clean. >> blatter has been there for a long time. it is quite hard to believe that he didn't have some suspicion that something was going on. >> to give away the tv rights for one dollar in exchange of votes, maybe it is not corruption, but it is serious mismanagement. >> for all the innuendo and the labeling that sepp blatter wears, there's never been hard evidence that sepp blatter is corrupt. what happened is, a lot of other people did that during his governance. that is where he's been labeled now. >> if it is true, what i read in

the newspapers that millions have been remitted to an american account, don't tell me the executive president doesn't know about it. >> this all happened on his watch. when these things happen, is it right to keep that person in charge? mark: the exclusive and explosive sound we didn't play that soundbite section. he is the former fifa executive advisor of sepp blatter. he worked for fifa for many years. he says that fifa isn't corrupt, various members are corrupt. he says there's no proof of corruption for sepp blatter. manus: it almost sounds as if it is a banking story a ceo that if he did know what was going on, there's a question mark.

if he didn't know, he should have known. it is an undisputed fact, that is what we deal with, the value of fifa has exploded under b latter's tenure, and the sponsors still haven't walked away. talk us through the numbers and the value that blatter has added. mark: the numbers are absolutely astonishing. in the four years to the world cup in brazil of 2014, fifa gross revenues of almost $5 billion. that should blow you away. let's compare 1995 to 1998. fifa gross revenues of $307.8 million. we've gone from $300 million to almost $5 billion in a four-year

cycle to 2014. don't forget, the profitability. after you take into account those revenues, $2.6 billion in that four-year cycle. one other staggering sum fifa has a cash pile of $1.5 billion. a decade ago, it had no cash. you mentioned the sponsors. the sponsors take tens of millions of dollars to the associated with fifa. fifa through marketing rights in the last world cup made $1.6 billion , up from $1.2 billion from the world cup of 2010. that's an astonishing rise of 33%. the scandal, from years ago, has taken on a new dimension to the scandal of the last few days.

we've had the ideas, the coca-cola, the hyundai, the visa, all coming out and stipulating, they are not happy with what is going on. visa was the most stringent. it will look into its relationship with fifa if fifa doesn't do anything. under sepp blatter, fifa's finances have ballooned. therein lies the secret to today. he's got money to give the member associations. they are arriving in the next hour. this is a very exciting day. the vote will take place later this afternoon. he needs a two thirds majority. i'm here throughout the day. it has just started to rain. manus: you see, mark, they knew you were coming. great work on the interviews. chase them with that microphone.

mark barton in zurich. caroline: meanwhile, let's bring you some breaking news. it looks like the ftc might be planning to put a foot in the middle of a deal. it is a deal between the united states maker of hospital sterilization products. it was seeking to buy cinergy health for 1.2 billion pounds. that deal might be overruled by the ftc. the comedy put out a statement saying that they've found out the ftc is planning to block their proposed combination. that is the federal trade commission. steris say they will contest the attempted action. they welcome a full judicial review of the competitive effects. they say that it is procompetitive, the deal. they say it is in the best interest of all constituents of the companies, including the

customers, and they want to keep this deal ongoing. interesting deal, because it has been surrounded by controversy. it is a u.s. company coming to base itself for tax purposes in the united kingdom. jack lew in the united states is trying to clamp down on this. 1.2 billion pound deal between steris and synergy. manus: avago technologies has agreed to buy broadcom. $37 billion. it is the biggest technology acquisition ever. let's get more with haslinda amin in singapore. it is just a huge deal, isn't it? haslinda: totally. it is a deal that makes you sit up, pay attention, and discuss it on bloomberg tv. the deal will create the sixth largest chipmaker in the world.

it hasn't been sealed yet. that will probably happen by early next year. like you said, the biggest technology deal ever. a 16% premium to caroline: -- to broadcom's last close. some say avago overpaid. even though avago says it is hard for another company to match that bid, it is still paranoid there would be a competing offer. as we understand it, qualcomm intel, they have had discussions with broadcom, but nothing so far. avago seems to be the only one with a reliable bid. if you are wondering what avago does, it makes chips for things like smartphones, computer disks, data networks. it has grown hugely as a company from the time it ipo-ed until now. it ipo-ed back in 2009.

back then, it was worth $15 a share. now, it is worth $142 with change. people, investors, are liking its strategy. manus: let's see. haslinda amin in singapore. have a great weekend. caroline: let's check on some of the other top stories. jpmorgan is to cut thousands of jobs over the next year as the bank weeks to contain expenses. that is according to a person with knowledge of the plan. the u.s. lender has been consolidating and producing the ranks of tellers as more customers use mobile phones and the internet. google has unveiled the latest enhancement to its android mobile operating system. it is making google now services at all times, including when users have another app open.

consumers spend more time on mobile devices. google hopes the changes will allow them a bigger share of their attention. president francois hollande says france once the u.k. to remain part of the european union. he hosted david cameron for talks in paris yesterday. the u.k. prime minister will continue his tour of europe today by meeting with the german chancellor and polish prime minister. manus: coming up, our next guest says there is value to be had in european markets, except down south. spain and italy. stay with us. that conversation coming up right here on "countdown." ♪

manus: grace's creditors have warned that a deal to unlock rescue eight is not imminent and have demanded that the nation make stronger commitments to overhaul its economy, strengthen public finances, and the greek

prime minister held an hour-long conversation with the german chancellor, the french president. that was last night. let's cross live now to dresden and our international correspondent, hans nichols. it is one thing after another. this emergency conversation last night, the clarity around christine lagarde's comments in newspapers. you've spoken to moscovici. that didn't sound like aman man that was ready to unwrap a deal on greece. hans: that's a very good way to put it. mr. moscovici said he didn't want to be overly optimistic. he said there is progress, but much more has to be done, and the speed needs to increase. he said that pension reform remains a sticking point. moments after we spoke thomas sinise, we spoke -- mr. moscovici, we spoke to the

finance minister of france. he said there's been some progress, but there's concern about the pace. you heard his comments this morning. not very optimistic. madame lagarde gave an interview to a very respected german newspaper. they initially reported that lagarde said that the possibility of a greek exit is possible. later, the imf ended up sending us a transcript of the interview which was conducted in english. they said she merely acknowledged the potential for a potential greek exit. that is where we are at. clearly, it is weighing on people's minds. it is going to dominate conversations again. it did seem to be quite a topic of conversation. one other bit of news, the deputy prime minister of greece he says this morning that the

political will to get a deal doesn't seem to be there on all sides. maybe a little criticism for mr. tsipras as well. we have technical talks political talks, nothing going fast enough. time is running out. manus: tick-tock. then, europe has a habit of doing these deals. talk to me about the latest date. is it june 5? is that the technical default date? hans: there's an obscure provision in imf bylaws that allows you to bundle payments and pay them at the end of the month. if it does look like you have an agreement where you could get some cash to greece by june 5, you wouldn't actually need to put it through and have all parliament sign off on it. you could acknowledge the fact that you have a deal and pay at the end of the month.

it always seems like there's one other loophole to exploit to get a little more time and then finally have a deal. it looks like now the end of june seems like the firm and fast date when there could potentially be a default. manus: thank you. hans nichols. caroline: and of course, with the slow progress in greece let's take a look at where there is value for investors in the world of equity markets. that's speak to james, head of equity strategy. good to have you with us this morning. you are probably of the view that contagion is limited. james: in spain, people have been making extrapolations of greece on test in. looking at the polls, podemas'

popularity has picked up, but the polls have been declining. caroline: the anti-austerity party? james: yes. it is really 12% since the start of the year. they are very much a pro-business party. i don't think it is quite the same story that greece is. consequently, spain trades on around 1.2 times price, in contrast to germany which is trading at two times. if you look at the s&p versus the dax, the dax is at the highest since 2001 on that technical term. if you like europe you like the story of loose monetary policy stimulating equities then i think germany is not the place anymore. you've got to look for value. whereas sentiment is beaten up in italy and spain, it fits that bill. manus: the ibex is up 11%.

italy is up 25% on the year. when i look at the industry groups, do you think there is more to go in italy? james: we own europe and we've been paring down. we are still overweight europe. we have been moving a bit of cash in our portfolios. within europe, that is where the value is. we don't feel that germany off useers that. manus: where is the sector value? autos had a phenomenal run. health care is the legal on the msci world index. when you look at your positions in europe are you taking any money out of autos? james: we didn't own auto specifically. the problem is that the sector's evaluation dispersion is huge.

people have gone for the safe havens. health care not so much utilities. manus: they are the worst-performing index. james: autos are very extreme valuations. the only areas where you see pockets of value are the energy sector, the materials sector and the financial sector. there's still this story in financials of assets or balance sheets restructuring. now we feel that is coming to an end. caroline: talk to me about m&a. we've just had the biggest tech takeover in history. avago getting into broadcom. is this a wave of m&a we are going to see? are you a buyer of m&a stories? james: we feel that m&a is

really starting to kick off now. there is a combination of conditions that make it very conducive. you've got low market volatility, low political volatility, and also a threat of a rate rise. if you want to leverage to buy out a competitor, it is better to do it now. also, there is such dislocation in the energy sector. there are some opportunities. we are a little bit cautious. when they start engaging and share buybacks, that is an indication that they have run out of ideas for growth. another way of using your cash is to take out competitors. maybe margins have. -- margins have peaked. if you look at m&a indices, it is hard in the long run to make good money, unless you are a

very successful stock picker. which i wouldn't say we are. caroline: self-deprecating. james: it is very high risk. our clients are typically low risk clients. it adds a lot of volatility to your portfolio, taking m&a. manus: briefly on china, some great stories. we saw a small gain, but a drop of 7% yesterday. volatility is beginning to mount. how much exposure would you have to china? james: we are overweight china. the h shares are a lower play typically than the a shares. the a shares are back to almost 2002 levels.

we are starting to get a little nervous. we are considering our position but we hold china for now. a lot of positive stories -- manus: nerves are always good, james. james butterfill, head of equity strategy, stay with "countdown." ♪

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♪we're having a party happy birthday, grandma! ♪we'll be swinging ♪dancing and singing ♪baby come on over tonight manus: foreign-exchange markets are beginning to crank into gear. we get gdp data provision for the first quarter out of the united states today. really flatlining at the moment on the dollar. the question is this, the real ignition came on may 22, when yellen was getting ready to raise rates. also, slightly higher inflation data. the question is, you saw that nice little spike on the upside

are we losing momentum? gdp data is expected to show a contraction of 0.9% today. that is going to be a significant reduction on the original estimate. bnp said the market is light with dollars and will begin to build up those positions. that is your dollar story. the dollar is getting that little bit stronger -- sorry the yen is getting that little bit stronger and the dollar is trying. we are at 123.95. you've got no inflation in japan. what will the bank of japan do next? will they do more quantitative easing? either he partners is the most accurate forecaster that we poll at bloomberg, or they were in the first quarter. they have the view that dollar-yet will hit 100 32 -- dollar-yen will hit 132.

the rest of the pack, they are much more sanguine. they are much more laid back, saying you've had your run, 125 is the top. citigroup saying 126 is possible. it depends where you are. it depends whether you think the bank of japan has to do more. will the greeks do a deal? moscovici didn't sound as if they were about to do a deal. christine lagarde needs to clarify their ability to do a deal. ambiguity abounds. june 5, is it really a cutoff date? is there cash aplenty? i leave you with this thought. the big bunch of orders for the options market is down at a level of 1.09. that is where the options interest is today. 2.2 billion euros worth of

options at that price level. never forget the last two digits. that's the bottom line. that's where the open interest is in the options market. would the fx traders be enthused to bring the fx level down towards 1.09? caroline. caroline: manus, food for thought. artistic as well. greece's creditors say a deal to unlock rescue aid isn't imminent. the country needs to make stronger commitments to overhaul its economy. speaking at the g7 meeting in dresden, commissioner pierre moscovici says work is needed day and night to resolve the situation. fifa's members are set to vote for their new president in zurich today. the election comes in the wake of the corruption scandal which has seen several officials arrested. sepp blatter, who is sending -- who is running for a fifth term,

is being challenged. to avoid a second round of voting, the leading candidate must get two thirds of the vote cast. japan's economy has limped into the second quarter with a host of poor data as well as a drop in household spending. inflation fell to zero. consumer prices excluding fresh food and the effect of last year's sales tax increase were unchanged. manus: let's get more on the japanese story now. let's cross to our bloomberg managing editor for the asian economy and government. he joins us from tokyo. flat reading on the consumer price index once you take out the fresh food. this sort of validates everybody's concern, which is lash after lasch of quantitative easing, and still nothing. >> this was a difficult set of

data that we got out of japan today. as you were just reporting, household spending figures don't look good. industrial production of of it, but not back to where it was as recently as january, and we've got people leaving the labor market. it is a tough set of data. what economists are saying, we are still seeing the huge hit to the economy that was sustained from the sales tax increase in april of last year. it very much feeds into anticipation that policymakers will add stimulus measures at some point in the coming year. manus: i've just covered where dollar-yen is. there's a great deal of discussion about taiwan and singapore getting into defense mode.

where does this bring us into debate about where the bank of japan would or could do in terms of weakening the currency by adding more stimulus? chris: at this point, economists are anticipating that october is the most likely month for a step up of monetary stimulus. the bank of japan probably wants to look at how the full picture of the second quarter looks before they go before they make a final decision. also, they want to look at how the consumer price index looks after you watch out the big drop in oil prices that happened in the middle of last year. when they do that, it absolutely feeds into the forecast for the yen to go even weaker. we've had the federal reserve chairman remind everybody in the past week or so that the fed is

preparing for raising interest rates. you've got the fed going one way, bank of japan going the other, and it is clear what the direction will be for the yen. manus: thanks for your input. chris anstey. caroline: for half $1 million you could buy a house perhaps. but if speed is your style, you may prefer a 750 horsepower beast. matt miller went to barcelona to test out lamborghinis new model. ♪ matt: christmas has come early for the superrich supercar fan. lamborghini has come out with this new car that costs $500,000

and has 750 horsepower. we are going to test it out at this formula one track. yeah! hit the brakes! it is the steering and the downforce that make this car so exciting. ahh! cornering! 175. 225. 250. so we've driven the lamborghini on the track. now we are testing it on the back roads of barcelona. let's see what it is like in the country, maybe even an urban setting. the gearbox cannot decide what

to do. it is looking for the right gear at low speed. this automatic gearbox is not happy so i'm going to shifted into manual mode and do it myself. among the other things that lamborghini has improved upon includes the steering. what they call lamborghini dynamic steering, a system they've developed to allow easier turning of the wheel at lower speeds and more stability at higher speeds as well. those were some of the most insane roads i've ever driven. and the car is, i would say perfect because of the power and the lightness, but it is huge. for thinm. tight roads like this it can be a little bit hairy. a little bit scary. that is not necessarily bad. let's take it back to the track.

unreal. manus: you don't know what to do with that. matt miller behind the wheel. caroline: he was clutching. manus: one of those moments of boys and toys. lime green. caroline: not my favorite color. manus: there's a ferrari shop near me. always interesting to see who's out for a test drive. caroline: you don't want it to be subtle, do you? manus: coming up, africa's biggest country, but its new president is going to need more than good luck, see what i did there, if he's to succeed. stay with us. ♪

manus: nigeria's new president

will be sworn into office later today. the 72-year-old former military ruler beat goodluck jonathan in march's election, with pledges to end corruption and tackle bo boko haram. he's got some pretty major challenges. the coffers are not exactly fold. what is his priority list? gavin: when he came into the election, the challenge he had was tackling boko haram. interestingly, that has happened. you have seen the strongholds being defeated. the second part was corruption. that is the bigger challenge. we know about the national oil company which has been accused of holding back billions from the treasury. third is what we've seen this week, the shortage of everyday

fuel, energy. we've seen lengthy queues at petrol stations, we've seen planes being downed. africa's biggest oil exporter has to export the oil for it to be refined. caroline: quite an amazing set of circumstances. and still, people are looking for potential investors. what do investors want from the new president? gavin: nigeria was the top pick in my top 10 emerging markets of tomorrow for the investors. it has this huge population dynamic going on. this is the country that is going to overtake america to be the third biggest nation on the planet. if you think about brazil, russia, india, china, that was all about population growth spurring this consumer boom.

that's what many investors are expecting from nigeria because its got a very young population one of the youngest for a major country. manus: in terms of your book, "frontier" nigeria comes out as one of the top picks foreign investment, convincing the world that corporate governance is going to improve, are we going to see a material shift of investment into the country now? gavin: the first thing that nigeria really needs to do to get foreign direct investment and any investment banking into the country is to free up the naira. the exchange rate has been squeezed because of this negative sentiment about nigeria because of boko haram and the elections, which were seen as potentially very violent. nigeria squeezed liquidity so

the banks could only trade as much naira as they had orders for. that has been big for investors. that is the first step. then it needs to diversify the economy. it needs to make sure that oil which accounts for more than 90% of export revenue, becomes less of a dependency, and you are encouraging consumer industries. there's a big manufacturing potential that the u.s. has hit on, that the u.s. wants to talk to nigeria about. these are the areas that foreign direct investment is looking at. manus: gavin serkin there. caroline: now let's have a quick look at the top stories on bloomberg this hour. switzerland's economy shrank the most since the financial crisis. gdp fell 0.2% in the first quarter. the outlook for the economy suffered a blow in january.

the news is pushing the euro higher. more money is changing hands in china than in the united states. combined turnover in shanghai and shenzhen rose to a record of $380 billion yesterday, exceeding the value of shares traded in the u.s. on wednesday. equity volumes in china have surged since late november. the former portuguese colony of macau so its gdp last quarter shrank. the slowing economy in mainland china keeps gamblers away. gambling accounted for almost 80% of its gdp last year. manus: we are going to give you a snapshot of what it is like outside. is it sunshine, is it rain? it is murky gray. and the markets are rather indifferent as well.

with that opening in mind minutes to go we are going to take a look at what is going to drive the trading day. michael houston what he thinks we should expect from the u.s. on their gdp. caroline: it is meant to be a contraction. 0.9%. a bit painful, but will it last? stay with us. ♪

caroline: welcome back to "countdown." let's get more on the outlook for greece, the u.s., japan. we are going around the world with michael. let's do the ongoing saga first. greece. will they, won't they? michael: like a bad soap opera isn't it? i think we've got the fifth of january payment, a big week next week with that. given what christine lagarde

said last night, or is alleged to have said last night, i think they are doing one payment at the end of the month. i don't see what other choice they have. imf once stability. if they can't agree among themselves, where does that leave greece? caroline: so there's 1.6 billion coming at the end of june? chris: i think so -- michael: i think so. it is kicking the can down the road and that is the best can they've got. manus: at the very mention of a can and kicking, i'm moving on. i want to talk about things that have money in them. michael: the ftse 250. manus: in election year, the ftse 250 typically does very well, certainly outperforming others.

michael: and it has this month. it has been driven primarily by property stocks utilities. the best-performing stock is up around 14%. it goes back to what i said a month ago. i think the ftse 250 had been artificially held down. caroline: but there is still uncertainty. there will be a referendum at some point. when will the markets factor that in? michael: not for a wild. we are two years away. they've taken five years to sort out the greek problem. do people really think david cameron will get he wants between now and the middle of next year? if i'm a business investing in the u.k., i'm not going to hold back. we've just had gdp growth of 0.3%.

potentially, we could get that to 0.4%. what is interesting is that business investment is going up. that is more important than the actual headline number. manus: u.s. gdp. we are expecting a big revision down, a contraction expected. are you looking through the clouds now, or are you pessimistic that things are not good in the united states because of dollar strength? michael: dollar strength is one issue. they are still running a trade deficit. it is going to have an effect. it is going to keep inflation down. also, i was looking at u.s. jobs over the past six months. we dropped below a three-month average of 200,000 last month for the first time in over a year. i think we are seeing the effects of the slowdown caused

by the falling oil prices. the falling rig count. you look at the chicago pmi. i'm are interested in that. caroline: so no rate rise this year or a rate rise? michael: i said in january on this very program that i didn't think we'd see a rate rise this year in the u.s. i stand by that. i think the earliest they can do that is december. in june, they are not going to raise them, which leaves september. are they going to raise rates and their growth forecast at the same time? i don't think it stacks up. if they do raise the forecast in september, the earliest they can raise rates is october or december. i think it depends on the internals. manus: therefore, in 15 seconds do i sell the dollar? michael: i think the euro has bombed. i think we have. manus: ok.

we are going to have to unfortunately leave it there. caroline: follow us on twitter. manus: michael, great to have you with us. caroline: "on the move" is up next. jonathan ferro talking to the ceo of wpp. ♪

jonathan: good morning. welcome to "on the move." the bank of japan key inflation gauge rose to zero. the swiss economy after the currency plunges. those are some of the big

economic things we will be talking about. we are looking ahead to the presidential election. we will speak about what it means for the ad world. the only thing that matters is the market open. futures are pretty much flat. manus cranny the market open. >> we get a little more support from the center of europe. he does not sound optimistic. it is friday. it is all about money supply. money supply data will be delivered. money supply is expected to come in at just under 5% of the whole of europe. the average money supply is expected to show growth of four and a half percent.