mark: australia hold steady the reserve bank keeps its key rate at 2% following two cuts earlier today. it says the aussie dollar looks set to paul further. manus: burning the midnight oil over greece. the head of the imf and european leaders hold an emergency meeting late into the night as they seek to avert a greek default. anna: we bring you a live interview with russian foreign minister. just days after details of our russian travel blacklist of eu officials emerged. we are live from moscow.

mark: welcome to countdown. manus: also coming up on countdown, will the reserve bank of india lower its rates? the central bank decision comes at 630 -- 6:30 p.m. -- 6:30 a.m. london time. we also get a reading of eurozone inflation. they predict the first increase in months. will it provide really for the ecb ahead of its policy meeting this week. anna: australia central-bank let the cash rates go to a record low of 2% today. so far, so steady. let's get more now from our reporter in hong kong. zeb: we have seen the rvh

keeping the rate unchanged and that was expected by all 29 economist. the record low rate of 2%. the aussie--- the aussie dollar -- depreciation seems expected. i wanted to show you as we talk about the aussie currency what is happening right now. it is trading around 76 u.s. cents. you can see this bike here just after that decision was announced. -- you can see this spike here. they are talking about inflation as well. it is consistent with their target in the next one to two years. they say it is appropriate that they kept rates unchanged. the key drag on the economy is mining a nonmanufacturing. we will be watching those

economic conditions. no change by the rta to that record low. anna: no change, but how are investors reacting to this news today. give us a broader picture. zeb: it has been a busy day. we are expecting that decision later today. as for other markets in the region, they have -- we are generally seen declines. shares are moving across the board. take a look at this green. you can see the red which will tell you the story. looking at australia first. 1.5%. the resource shares leading declines. down by 5%. that stock is rising. here in hong kong and shanghai

similar performance. the hang seng is down by just under 1%. property shares are in focus. $.10 advancing. china resources lag. we will watch these shares. mark: european leaders and heads of the imf held an emergency meeting on greece and berlin late last night. they have agreed to intensify their efforts. to avoid a default. hans nichols, good morning. who was there and what did we learn? hans: the attendees were not surprising and it wasn't a secret meeting but it was an extraordinary meeting. we had mario draghi, christine lagarde, mr. younger. and we had the french president

as well as angela merkel. they are trying to hammer out a unified position so that they can go to greece. i don't want to call it an ultimatum. they are trying to come up with the last, best offer. that is what they want to deliver to mr. tsipras. they want to put it on the table and have a unified position. we have here a little insight on what actually happened at the meeting. they did say that the five leaders agreed to work and that the work must continue with greater intensity. the idea that you can attempt to buy talks on this seems a little bit off. maybe they will dedicate a little more time on their schedule to have more meetings. maybe they should call it a snap meeting. anna: these kinds of meetings

typically come with details about what they ate and drank. hans: we need that wine list. it did go into the night. we know that deadlines force decisions. we do have one payment coming up on june 5. manus: there is a certain amount of credibility factor at stake. the americans have come and said that they are worried. this is the game of political global theater where we are all harrying together to come up with a proposition to show the world that after five months of prevarication and waffling, we could cobble something together. hans: maybe because my father is an american but i am always inking about a -- don't make me pullover line. what is the threat? is the contagion real? we haven't seen that indicated

in the spanish and italian bond situations. this has long been the line inside the foreign ministry inside berlin. this is a great problem. anna: we get mixed comments from our guest away. one guest said this is all peripheral and we shouldn't worry about it. then we have a guest coming up later that says it is less than a threat -- less of a threat to investments. manus: you were standing at the g7 meeting of people were looking at this as another concern. you are quantitative easing aplenty from the ecb. what the ecb is doing counterbalances it. hans: it seems like the economist are in this camp because they like to run experiments. the economists say they don't

want to run this experiment. some central bankers seem to think this is an experiment that you can run. you don't want to be on the wrong side of this binary question. it doesn't look like they have a political agreement to get there. anna: top stories on bloomberg. hsbc will announce a plan to cut more jobs next week. that is according to sky news. the ceo stuart gulliver will disclose his target when he updates shareholders on the bank status. it will probably affect 10,000 to 20,000 employees. that number is worth -- is still being worked out. laying out plans to privatize -- privatize the royal bank of scotland. that is according to the financial times. the report comes after the government confirmed plans to sell deutsche else to the public. -- to sell lloyd shares to the

public. the vessel capsized after being caught in a storm while traveling westward from nanjing to chongqing. chinese state television has reported that more than 50 rescue boats are involved in the operation. the premier has just arrived at the scene of the accident. shiva's number two authorized a $10 million payment to u.s. prosecutors and it was characterized as a bride. -- as a bribe. identifying them as only a high-ranking fee for official. in northeast pain was named as the world's best restaurant.

the high-end eatery scooped the prize as the annual -- at the annual restaurant competition in london last night. manus: you can join the conversation and find out who is in that list -- or which restaurants are on that list. you might be able to afford a house in sydney because prices have gone down there. here is the twitter button. @markbartontv @manuscranny @annaedwardsnews. anna: i need to get out more. mark: go to dinner more. coming up, our next guest says the standoff between greece and its creditors is all a game of bluff. stay with us.

anna: welcome back. some breaking news for you. charles kennedy, formally a u.k. politician, has died. also being reported by other news outlets. he was a british liberal democrat politician. he led the liberal democrats

until 2006. he was a member of parliament from 1983 until 2015. losing his seat in this most recent election. he represented the liberal democrats and they suffered many losses in the 2015 election. sad news that he has died according to the press association. manus: let's head to the head of the oecd forum. policymakers and ceos gather to debate how to promote global growth and investment. caroline hyde is live in the gardens of the oecd. a beautiful backdrop. what is the debate today and give us a little bit of a curtain raiser? you have a spectacular array of guests. caroline: this beautiful garden.

i'm out here in paris ahead of the 2015 foreign. the oecd is trying to set the agenda to talk about people planet, and prosperity. in terms of talking about prosperity and people we are talking about reducing the wealth cap. the top 10% earners having 10 times the wealth of the poorest. the want to see how -- this is a debate among the policymakers and the trade union representatives. they will descend on paris in the next few days to talk about how we minimize that wealth inequality and talking about people as well bringing more women into the workforce. and how to promote that. in terms of the planet. we are looking at the top 21 and keeping this green investment going and how to reduce climate change. they really feel that they are a curtain raiser to future talks.

once again, it happens time and again, greece is undoubtedly going to be hijacking some of that agenda because the finance minister is due to be here tomorrow along with many other finance ministers who will descend on paris. that will clearly be a top -- a top topic of concern. how can they promote investment growth increase right under their noses. we have some great guest coming up right here from the garden. i will be speaking to chief executives about hiring more people, bringing more women into the labor force. we will be speaking to the head of the oecd. we will be debating on what he hopes to be seeing on the agenda in the next few days. mark: talk to --talked about your panel what will you be

moderating? caroline: we have submit amazing policy -- we have some amazing policy makers on that. the british father of venture capital will be here. now, he is focused on social impact. how can we invest for the greater good. how can you still make money by promoting green energy whether it is helping entrepreneurship and innovation. helping people to get into the workforce. particularly those who might be incarcerated. how can we do social good while also making an investment. we will also be joined by a top female on the supervisory board of the oecd. she is promoting the banking union and how they can keep the regulation of the banks and promote lending.

we want to understand how some of the policy changes that she is making and how they are helping banks to lend. that will be interesting to get her thoughts especially as we see greece dragging out its deposits. what does she -- what is she most worried about when she comes to greek lending. we have the deputy chief of the turkish bank. how is he seeing investment coming into his country at the moment. is there ever -- is there a recovery? a very vocal man. calling against austerity. i will be here all morning. live from the garden and then along with the panel with some great guest. manus: we look forward to hearing those interviews.

mark: let's get some comments on our top stories right now. we are talking about greece past midnight during a meeting in berlin. let's talk about japan. the yen briefly dropped below 125. for the first time since 2002. the boj continues its bond buying program. hello brandon. the dollar-yen was stuck in a trading range from december through may 22 win janet yellen intimated that rates would be raise this year. we are through 125. how high does the dollar go against the yen/. brandon: the spike was the imf coming out about 10 days ago and saying that japan should be prepared to do more qe. to get its 2% target.

that is quite extraordinary for the imf to be taking such a strong position in favor of the 2% inflation target. that was the catalyst. you have the expectation that maybe -- the direction of capital in japan is very strongly out into the higher yield alternatives to the degree of frenzy to get into anything other than the yen at very low rates. the unfortunate aspect of all this is that the policy is driving japanese investors. there may be added price inflation. buying. cheap yen. that is the downside. anna: do you think the bank of japan will need to do more? wages are increasing faster than the cost of living in japan for

the first time in five years. some are suggesting that could help. will they need to do more qe? brandon: they don't want to exacerbate the yen weakness. we are at a critical stage right now. congress is talking about currency undervaluation. i don't think we will be -- they want to be seen taking any provocative steps. manus: there is an article on bloomberg talking about the quantum that the bank of japan owns relative to the size of the bank of england. it far outpaces the other central banks. is that story a much bigger unknown? brandon: but we have seen in the case of germany in recent weeks is that if you have a wave of traders and investors deciding that yields have to go up, they

can out part of the central bank even if they are doing a lot of qe. that may still happen in the japanese situation. also in japan you have a huge mobilization of savings into government bonds financing the credit unions and regional banks. one of the great disappointments of the program is that they haven't really done anything to break this mobilization and liberalize the financial system. mark: you will stay with us. thank you. ♪

manus: head of economic research at mitsubishi. brandon they got together last night. merkel, lagarde, draghi. there talking about the future of greece. we were down to the wire. you have an interesting take. you say it could be the turkish elections that trump anything that happens increase. brandon: there is the possibility that he will steal the votes and there will be mass protests. turkey is the most risky of the big emerging market economies. there is much more private money lent to turkey been to greece. if there is any sort of credit

event in turkey, the implications through the private credit markets are much greater than anything we can see in greece. greece's much more a lamentable story about how the eu has gone wrong and we only have to see the details as to how much money has been squandered there. it is not a new credit event. anna: do you think a grexit would be manageable in the sense of economic fallout for the rest of the world? or are you in the camp at that says it would be a crisis? brandon: i think it when be a crisis although it would encapsulate the failure of the european union. in terms of the overall picture, for greece itself, it has to be a lamentable event. mark: thank you brandon for being with us today. the dollar at about 125 for the first time since about 2002.

we will be back in just a couple of seconds. ♪

manus: welcome back to countdown. let's check in on the aussie-dollar. no change which was as expected from the aussies. they are back to job owning the currency. they said there would be no change. depreciation seems likely according to the reserve bank of australia. there has been a decline in construction. the overall trajectory. a little bit of a pop to the upside. this state of change would pretty much -- was pretty much

expected. 7.25% from 7.5%. that was expected. 33 out of 41 pulled said the r.b.i. woodcut for the third time. rod john cut twice -- rajan cut twice. where we are in terms of dollar repeats. 6371. dollar-rupee will fall further. probably to the 66 level. dollar-yen. you have dollar-yen a broke 125 level for the first time since 2002. we come back a little bit. the dollar strength may update or it will find it harder to

take its momentum higher. the yen is the second worst performing currency in this second quarter. of the d10 currencies. it is down about tree .6% over the past quarter. we have dollar rising, yen falling in the last three months. only the new zealand dollar was a worst performing currency in the d10. anna: let's get some more detail on that r.b.i. story. the bank of india. they are announcing their decision to cut their benchmark interest rate. to 7.25% from 7.5%. there talking about further easing depending on the strength of the monsoon. the monsoon, oil prices, external volatility -- all are risks at the moment. those are well known factors heading into that decision. the monsoon season is expected to be a dry one.

this is the second year in a row that there will be a dry monsoon so there is not enough water so food prices could go higher in india. obvious implications for those on low incomes and its impact on the inflation rates. the risks to the 6% rate target art tilted to the upside. they have a 6% inflation target that they want to reach by january 2016. the rupee is falling to 0.2% after the r.b.i. rate decision. equity markets in india are extending their drop to 1% as the r.b.i. cut rate by 25 basis points. mark: china's cyber security week kicks off to inform the public about potential security risks. chinese lawmakers are considering a security bill to protect cyber sovereignty. attendees include representatives from the people's bank of china and

executives including alibaba founder. in central china, they are scrambling to find survivors from a cruise ship that was overturned and the gang see river with more than 450 people on board. it capsized after being caught in a storm while driving westward from nanjing to chongqing. chinese state television is reporting that more than 50 votes -- within 50 rescue boats are involved in the operation. the premier has just arrived. charles kennedy, the former leader of the u.k. liberal democrats has died in his helmet 855 according to the press association. it is not understood to be suspicious and the cause of death is yet to be conference. kennedy lost his seat in last month's general elections. anna: let's get more now on the r.b.i.. the reserve bank of india's rate decision. joining us from mumbai is our

reporter. give us some more details on the governor's inflation outlook. guest: you are just reading the headlines and we are getting more details here in india. the expectation was that the central bank would cut its key repurchase rate. the rate at which the central bank lends money to commercial banks in the event of a shortfall. that is exactly what we have seen coming in. there is also a lot of macroeconomic data that the governor has been saying here in india. that decision would not have been easy. manufacturing has bounced back to a four-month high. in the fiscal course sector index which measures the output

for these industries. it shrank by 4% from a year ago. it is not going to be easy going forward. we were talking about the inflation outlook that the governor has. shooting for 6%. we are looking at an uncertain future in terms of the monsoon. the big headlines is that the first rains of the june to december season. unseasonable rains that we saw here in india and one of the worst heat waves that we have ever seen. to be more cognizant of global monitoring policies. going forward it will not look easy and we will hear a lot more impact from the governor when he speaks in just a few moments. anna: how does that fit with the

6% target? today he is saying that there are risks to the upside. is that to do with the monsoon story as you were saying? guest: that is what the panel feels that the monsoon and its threat will top the concern. the governor is sounding put -- bullish. it will not be easy. the expectation is that we wouldn't see anything major coming out on that front. banks are yet to pass on the rate cuts. despite a strong commentary coming out for the r.b.i. we have not seen that passed on. the economy continues to struggle and the infrastructure continues to struggle. the governor continues to

maintain that the headline of 6% inflation target looks achievable. going forward. anna: thank you. manus: appeal of $.5 billion -- in a canadian court in favor of smokers in a class-action lawsuit. we have the story. a canadian court. give us a sense of what is going on. >> these lawsuits were originally filed back in 1998 that they only went to trial recently. the court decision covered two class actions. one was seeking damages for addiction and the other was a smoking-related diseases. that was according to one of the companies that was sued. three companies involved here. the courts ruled that rdh pay

3.1 billion canadian dollars. imperial tobacco canada has to cover 10.5 billion canadian dollars. that is owned by british american tobacco. the third company has to pay 2 billion canadian dollars. 15.5 canadian dollars in total. mark: do companies have grounds to appeal? >> they say that they do. hedges believes that they have strong legal grounds to overturn the judgment in its entirety. imperial tobacco canada -- the general counsel says it ignored the reality that the consumers and governments have known about the risks associated with smoking for decades. it seeks to relieve adult consumers of any responsibly for their actions. the plaintiff claims that the smokers did not know about the dangers of cigarettes. manus: this is the gallup poll that you are referring to from 1963. >> the gallup poll said that 96%

of canadians were aware of some cancer risks. perhaps in the years following they forgot about the risk. anna: thank you very much. let's turn to india's technology. in a deal that will add to a record deal for industry consolidation. intel's cia though -- >> the customers have been asking for a product that combines a programmable device along with our cpu. in driving assisted cars. our customers have really been driving the need for this and so in order to get them to market in a timely way we needed to do this acquisition. anna: he also spoke about the difference between intel and altera.

brian: our sales tend to be more general-purpose cpu or logic sales. someone going in and selling -- altera is going in to sell a very specific capability. you have to work quickly with what the architecture and software implementation is. to size it right. and to scale it right. to get the right part in there. anna: in a year of consolidation in the tech industry he said that previous acquisitions had shaped his approach to this one. brian: we have been doing a lot of acquisitions over the last few years. i ran one of intel's acquisitions for a while earlier in my career. mark: intel is struggling to achieve growth amidst rising costs.

the deal is seen as a bit to extend its -- as a bid to extend its profitability. in europe, to continue rising at about 15% over the next five years. arm cmo ian drew spoke to bloomberg television. ian drew: we see it slowing down a little bit and there will still be 10% to 20% growth. there are still billions of people on the planet that do not have a smart phone. when you see this slowdown, it is really a slowdown from triple digit growth. manus: join us all on twitter. you'll find those -- and in europe and in london. it is all there at @markbartontv

@manuscranny @annaedwardsnews. mark: the r.b.i.'s cutting rates to seven .25% from 7.5% the governor is speaking coming up. following these rate cuts and these are live pictures. the r.b.i. says it has $350 billion in reserves which it says is a strong second line of defense. we will get some more analysis of that, stay with us. ♪

mark: these are the top stories -- hsbc will announce the planet's week to cut thousands more jobs according to sky news which is cited unidentified people close to the matter. the ceo stuart gulliver will disclose his target when he approaches shareholders about the bank strategy on to the night. reductions would probably effect between 10000 and 20,000 people. although the number is still being worked out. the companies plan to appeal the $12.5 billion decision by canadian courts in favor of smokers in a class-action lawsuit. the court ruled against hedges mcdonald, and it. tobacco canada. which is owned by british american tobacco. feith's number two authorized a

$10 million payment that the u.s. prosecutor characterized as a bride. -- a bribe. the official described in the indictment as having made payments from fee but to bank accounts overseen by jack warner the longtime head of the central and north american soccer federation. the indictment -- identified only as a high-ranking fee for official. anna: let's get somewhere and analysis on what is happening in india at the moment. the central bank is made in interest-rate decision in the last 20 minutes. they decided to shave the benchmark interest rate by a quarter of percent. joining us now is the head of investments. good morning. you are in good company.

many economists saw this coming your there wasn't a dictation that there would be a rate cut. there is a bit unknown at the moment. what about the monsoon season? explain the significance of that. >> 46% of the seat pr -- he delivered rate hikes. the key things to remember from this announcement is that he has lowered the growth valuation and gdp expectations, he has increased inflation expectations for next year. another rate cut may not happen until next year. he is a bit hawkish going forward. if we have a good monsoon we

may see much more positive rti. mark: the oil prices pushed to -- we have seen a rebound. what is the impact on inflation and the trade deficit and the budget targets? >> the low oil price has been a great debt -- a great benefit for the government. there is still a lot of structural bottleneck on the supply side. that is where the government has really come out and perform better. r.b.i. cannot control that in the government has delivered. we have two bills in the government. that will have transformational effects on the economy. manus: hope is the key thing. i've put together some data.

the bottom performing stocks. the top performers are not dependent on the government. they are not dependent on subsidies. they are all independent of the government. on the bottom side,. where do you stand in terms of positioning for india? >> the consumer discretionary stocks -- and that is what everyone is banking on. some of these things that has not helped. my personal view is that we are seeing progress on the government side on the policy front. when this government came in there was a complete policy

paralysis. that has gone. because of the way indian democracy works there is still opposition and there is not a whole consensus running the policy thing. i am hopeful that you will see more agreement. manus: in his first year, modi has spent too much political capital for no coherent purpose. before it is too late, that needs to change. does he need to get more radical? >> he has been more radical. he has been traveling around the world. a year ago, that was not the case. what modi is doing is putting india at the forefront. there is no point beating around the bush. the government has to do a lot.

government relies on what happens in the u.s. if you are trying to control your food supply it takes a long time to develop that. people have a frustration but there is no lack of willingness on the part of the government. anna: diversifying the source of food seems like in the long-term perspective a good idea. there should be contingency plans for food management. structural changes to allow the government to not be driven by the weather to such a degree. >> there is a lot of food wasted. anna: better infrastructure. >> we also have a problem because the government subsidizes -- people and of using more. every government has to look into this. that is a fine balance that

india has to manage. mark: head of investments at cross bridge capital. thank you very much. ♪

mark: let's look at our favorite stories from the world of bloomberg.com.

a lovely piece. asking what the next move is by michelle plett made. who asked bladder to step down twice. he refused. he is feeling a bit numb from the criticism that he received. ua thought could wave caught -- could boycott the world cup. anna: will greece joined these deadbeats not my word. we have a nice piece on the imf payment. could greece soon be about to join that list. the amount that greece owns is similar to what three african countries oh. manus: the paris bridge.

people who are in love put a lock on the bridge. 50 tons of love. it is being -- the locks are being removed. anna: the dangers of romance. countdown continues but not on that subject. ♪ .

mark: india cuts rates for a third time this year. manus: burning the midnight oil over greece. european leaders and ahead of the imf hold a meeting late into the night. anna: a live interview with russian foreign minister sergey lavrov. that is live from moscow. mark: welcome to "countdown."

i am mark barton. anna: i am anna edwards. manus: i am manus cranny. mark: they agree to intensify their efforts. joining us is hans nichols who was it there. what did we learn? hans: i wish i'd been in berlin. we had to go five most important leaders trying to freak out what to their offer would -- trying to figure out what their offer would be. it is not offer they want to make sure they're are on the same a line. with angela merkel, juncker, christine lagarde, mario draghi and francois hollande. they agreed it must be continued with greater intensity. the closest contact in recent days and want to remain so in the coming days. we talked a lot about deadlines

and ultimatums, it is unclear if june 5 is a role deadline stop they have a money payment due and they are willing to fudges that. they are very sensitive about really driving greece too hard. and some ways, they put out a red line. they want to make it possible for tsipras to compromise and have a landing path. we will see once you get any kind of details all the document they are putting together and maybe grab a conversation about an endgame. and games and deadlines can change. mark: thank you. manus: right. the stories acted as hour on bloomberg. hsbc -- actually, we would do that. i am getting far too exciting. anna: you are. you are getting ahead of yourself. manus: i know what we will do.

we will go to -- a chat with caroline hyde. she's with the ocd. i think you have a rather special guest. caroline: indeed. no other than the secretary-general joining me to discuss all things about the warm up to the 2015 forum. unlockin investment. what you think his meaning is keeping the levels from the precrisis? guest: there are regulatory issues and second, uncertainty about the future. the problem is that that an investment is the seed of future growth. if you do not have investors, you will not have growth tomorrow. not just in hardware but also investments in education, and infrastructure and the medium to

long-term and green infrastructure. and the water in order to avoid climate change. and again, investment in things like the knowledge. in the united states already you are doubled investment in what you will call knowledge or technology. in hardware which is the way the world is going. caroline: is it regulation? angel gurria: regulation in the sectors for example, if you do not have an integrated telecom or energy or electricity market in europe, you cannot expect investment to come and look at the market as a single, enormous market. rather than independent little bit and pieces fragmented and lots less appetizing. and then you have questions that have to do with the regulation of the financial sector in self

desktop the flows from coming. -- that stop the flows from coming. if you say that if you buy something which does not trade actively and have a secondary market price what happens is you will get penalized the moment you buy the asset. why should you then? these regulations we put them on the books. this is like climate change. it is man-made. we can undo it. caroline: it should be undone? angel gurria: it should be done better. there has been regulation but the ones we have today are not allowing the investment to flow. why are there, for example, trillions of none repatriated profits everywhere in the world that do not go to the united states to be invested in the business of their companies? rather than using the money to buy back shares.

caroline: let's talk about the uncertainty part you just mentioned and greece. yeah varoufakis -- you have our focus. you have talked about reforms and health regulators and the situation to steer it on a better course. what is going wrong at the moment? angel gurria: there a short-term and medium-term negotiation that needs of the result in the next few days or hours. caroline: will it be? angel gurria: i think so. when you have so many people, so intelligent and if you want to trying to get deal, you normally get a deal. it may be extended to the 11th hour. that is human nature, extended to the limit. i think there will be a deal. and then a question of the medium and long term with greece. we are working with them to make sure there's tax collection and

fight against corruption and there is better efficiency and of the greek system. more competition, outlook arcs -- ogligarchs as monopolies. caroline: you are working for them but it are not on the to satisfy their creditors. angel gurria: there's a short-term issue that has to do with maturities and the deal they have to sign with their creditors. that hopefully will move along. we are looking at the medium to long term and weapon working with agrees for many, many years. reese is a member of the oecd -- with a greece for many years. -- degrees is a member of the -- degrees is a myth -- greece is a member of the oecd.

nobody is leaving. it will keep strengthening and get more members. if the biggest trading bloc and the world. caroline: you think they will stay with the eu? angel gurria: i think they will. they submitted a law to decide if there will be a referendum. clearly, too early to talk about the issue or speculate about it. caroline: do you were about the uncertainty of the greece question and brexit for the eurozone in terms of growth? angel gurria: i think europe is one of the most amazing constructs. europe is always a building itself, reinventing itself. europe is always redefining and finding new mechanisms. the banking union, the fiscal union. the problem is it is always happen in a sense of a big black canvas. notre dame, you cannot see

because work in progress. when they take away the black canvases and -- it is awesome. this is europe. you can accuse the europeans of many things but not being very fast. caroline: are you optimistic for growth going forward even at a slow pace? angel gurria: europe is recovering. if you cannot detonate, unlock investment as we are saying in this if we cannot unlock trade which is growing also at about half the speed it should. if you cannot unlock credit, which is necessary to get se's going. the big companies are generating a lot of profit parking them outside of their countries. in the vietnamese are suffering from a lack of credit. you have to get investment and

credit and you have to get trust back. trust is a very important legacy . we have to get into that so people act accordingly. if they have trust in the future, and then they will consume and and invest. caroline: you have here a perfect collection of people who look to you and you are policymakers and a of business and trade unions. who needs to incentivize, who needs to build the trust? mainly to politicians or the private sector more? angel gurria: the importance of having them all is they all have a role to play. trade unions, investors, the private sector the business side, clearly governments. analysts, the media. everybody was looking at the phenomenon here has a contribution to make. the international organizations

who work and asked on behalf of of the collective of government. we all have a contribution to make and that is what we're here for. caroline: you hope having the finance ministers here tomorrow and mr. varoufakis will be here, too and that will help the greek crisis at the moment? they may sit down? angel gurria: i do not think of this is where the negotiations will take place. there's a group of designated negotiators meeting in brussels or athens or wherever they decide to meet. and they are meeting as far as i know right now practically full-time. and today should. it is not going to be here because of a issue in which we are want to be discussing the economic outlook, we will be discussing a human capital. we will be discussing innovation. we will be discussing more

competition. we will be discussing skills skills skills as critical elements of productivity. productivity is flat or negative. i delivered about 10 or 12 economic surveys and our member countries and the last three months. in all of them, productivity was flat negative and had been drifting for the past few years. not just the past few months or year or two. you cannot aspire to have sustainable growth over time if productivity is lagging. you cannot aspire to have better wages. caroline: you are looking at these longer-term growth knowing the characters in play here and mr. sippers as you do and the creditors, you know these high-level people in these negotiations. all is going to compromise -- and the greeks or the creditors?

-- who is what the compromise the greeks are the creditors? angel gurria: it is not a question of somebody compromising. everybody has vision and constraints. the key to a negotiation is while pushing your own concepts your own vision, you understand the other party's constraints so you can then arrive at the convergence solution. that is a process which sometimes takes longer than it should. and if there's also political positioning bolstering the speeches, etc. it is part of the process. you are coming back specifically to the question of greece. my expectation is that when everybody of such stature, greece and their creditors, are trying to get a deal, they should. caroline: i hope so and i hope you manage to bolster the growth and the ideas we will be

debating for the next few days. angel gurria: we are trying. caroline: wonderful to speak to you, mr. angel gurria head of the oecd karl schlicht. they have policymakers and debating how to drive that innovation and that growth. back to you guys. manus: thank you for that great great interview. some great alliance from angel gurria. an 11 hour deal will be done. it is about convergence. great interview. looking forward to the rest. anna: hsbc will announce a plan to cut at thousands of more jobs according to sky news. ceo will disclose a target when he updates shareholders on the bank's strategies. it will probably affect 10,000-20,000 people although the numbers are to be worked

out. u.k. chancellor george osborne is expected to lay out plans for the privatization of royal bank of scotland. that's according to "the financial taints." -- the financial times. sepp blatter announced a payment characterize as a bribe by u.s. regulators. they said the fifa secretary is described as having made the payment to jack warner, the longtime head of the confederation. the indictment does not name the person who made the payment. it identifies them as "high-ranking fifa official." named as the world's best restaurants. the annual world 50 best

restaurants last night. european restaurants were five of the top 10 spots. and a french chef won the best female chef award. manus: we can say [indiscernible] she did a lot better with the spanish pronunciation than i would have stopped -- would have. the discussion with caroline hyde and weapon tweeting quite seriously @manuscranny, @annaedwards @markbartontv. mark: we will talk about that india's rate cut. stay with us. ♪

mark: the reserve bank of india cut its benchmark 7.25% from 7.5%. more from reporter. good morning. tell us about the decision. reporter: they said it wanted to frontload the interest rate cut to head of any negative impacts. they are watching to see the impact on the months on the full -- of the monsoon. the food inflation. we are watching the indian rupee trading the level in the wake of this decision. the move when it was announced. it's the third interest rates cut this year. they're trying to spur private rate investment.

they're also trying to take advantage of a narrow window of opportunity here to move before we see other central banks are moving. the general reserve in the united states. the move by that one will have a big impact on not india is able to calibrated going forward. this move frontloading as the minister put it and trying to head up any negative impacts down the line from u.s. rate increases and certainly the weather situation in the subcontinent's. mark: zeb eckert and hong kong. stay with us. it is 7:20 a.m. and we are 40 minutes away from the start of european equities session. this is "countdown." ♪

anna: welcome back. european leaders and the head of

the imf and the ecb held an emergency meeting on greece in berlin. they agree to intensify their efforts to avoid a default. joining us is nikos. what was this a meeting about then? it did not start until very late, did it? nikos: we are clearly approaching the end game. the secret meeting between europe's most powerful decision-makers in the middle of the night and the imf and ecb meeting would take place after bloomberg broke the news. we have been told that the endgame with this meeting yesterday may stretch and to the eurogroup meeting which will be held june 18 in luxembourg. it was to hammer out a common

approach between creditor institutions represented presented this approach to the greek government. it is going to be an offer and it is -- we should not have any doubt it will be a hearty deal for the government to swallow. anna: interest in whether it will be take it or leave it or take a bit. what should we expect next? more secret meetings? there's a deadline at the end of this week. that is one of a number of deadlines in june. nikos chrysoloras: we talked about deadlines before but this is the real is saying. remind viewers greece's bailout expires in a less than four weeks now and there is no way the parliament will agree to another extension for greece if it does not deliver -- some of

the commitment. this is at climax, the endgame. mr. draghi will a brief dog governors today on the results of his meeting with other eu leaders and their chief of the imf. and the governing council of the ecb will convene tomorrow to decide on whether to raise the share cut of the collateral that the greek banks/four emergency -- bank for emergency funds. we expect a deal offered to the greek side. whether greece will accept it remains to be seen. anna: thank you. thank you very much, nikos chrysoloras. manus: we will bring you another interview from the oecd forum in

paris. it will be a bloomberg. stay with us. what the rupee is doing and the market take. ♪

just because i'm away from my desk doesn't mean i'm not working. comcast business understands that. their wifi isn't just fast near the router. it's fast in the break room. fast in the conference room. fast in tom's office. fast in other tom's office. fast in the foyer [pronounced foy-yer] or is it foyer [pronounced foy-yay]? fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business.

manus: welcome to "countdown." two great decisions today. one in the rupee. india cut their rate. it was at the meeting. the reserve bank governor said if they cut rates 25 basis points undoing the work he had done and the run-up to christmas. the rate has been cut 25 basis points. they have strong foreign exchange reserves. further easing could depend on

the monsoon and the amount of rain and they grow and restriction of crops. that will impact food prices. this is the today food chart. really want to understand the past. you can see the overall rise in rupee and then a bit of a reprieve. where firmly back on a new direction. 66 where you may end up. mcquarrie said hawkish for them. calling on the rupee up to 63. the indians delivered as a complement to modi helping camel with his reform program. -- helping him with his reform program. one analyst said he does not see any more rate cuts until early next year. the aussies. the majority of the people we polled said if there would not be any rate cuts from the aussies. all 29 analyst that are no change.

they left at 2%. sitting around the campfire gets a couple of deals and talk about the currency. further dollar depreciation seems likely. a large arise in the construction dollars/yen this was we like. talked about 125. you of nothing that since 2002. the second worst performing currency and the second quarter in japan. down nearly 4%. only the key we had a worse time. dollar-yen weakness will exist. the average of the bloomberg forecasting tools i use market, you would be proud -- mark you would be proud of for me. 125 on dollar-yen. two major central banks making

their decisions on interest rates. a lot of it will come down with what happens with the dollar. stanley fischer, the dollar is a little higher and he is saying it's the most misleading word imaginable "lift off." they will start up and lived a little bit. all about project three. mark: china's cyber security week kicks off. the potential of risks as lawmakers consider security bill to protect cyber sovereignty. according to officials of the people's bank of japan -- china and incentives including alibaba founder jack ma/ rescuers are scrambling to find survivors from the crucial ship the overturned and the yangtze river with more than 450 people on board. it capsized after being caught in a storm after traveling west.

chinese state television is reporting more than 50 rescue boats are involved in the operation. chinese premier li arrived at the accident earlier. the former leader of the u.k. liberal democrats has died at his home age 55. it is not understood to be suspicious and the cause of death is yet to be confirmed. kennedy lost his seat in last month's general election. anna: breaking news from the european commission about to greece. more commentary than breaking news. adding to our knowledge of what is happening as we zero in on the final hours of the greek conversation. the european commission economic commissioner saying the grease talks are beginning to bear fruit making these remarks on french radio. saying there is still work to do on both sides but talk about progress being made which sounds

more promising. he goes onto say this not the time to discuss greek debt right now and greece has made promises and commitments that must be met and those are for -- from mos covici. mark: there is a meeting in paris. there will be unemployment data from spain and germany. bloomberg's caroline hyde is therefore us with another guest. good morning, caroline. caroline: good morning, mark. i am joined by the chief executive, jacques van den broek . thank you for joining us. we are hearing is by people and prosperity and planet for the oecd you are the people and the prosperity. you have a book you will be launching.

what are you going to be taken to the stage? jacques van den broek: well, a lot of topics. the book is about flexibility at work. we look at freelance. a lot of talk about freelancers is a good, a positive choice or negative choice? all we want to do is talk about real life and the findings and bring that into the discussion. we are sure that freelancing is an important way going forward for people in the workplace. caroline: looking at the way it at which people are finding employment, it is still temporary freelance that is driving the growth or people hiring more permanently? what are the trends? jacques van den broek: it depends on the country in the segment. we see lots of job profiles in a stem jobs everywhere in the u.s. in europe. on the one hand, employees want

to hire them. they are freelancers by choice. what drives the most is something is the most challenging projects out there. they do not want to be in a way stuck with the same employer. they want to do what is exciting. caroline: what other sectors really are growing and breaking stint -- steam to the economy? jacques van den broek: the u.s. is still a pretty stable economy. we heard a little bit about slowing down. in our numbers, we do not see that yet. we see a bit of wage inflation in a blue-collar areas which is a good sign. unemployment there is 5%. we do see a lot of hiring there. caroline: which other geographical region do think that surprising with the growth? jacques van den broek: the small country i am coming from. not so much economic growth which is 1% but our market has

grown 13%. we think it is due to two teams. the economy has been sluggish to the european economy and almost all european countries have low penetration of flats labor before the crisis in 2008. the only exception is germany and the netherlands are catching up. does a top priority -- priority. caroline: the dutch economy is doing well in terms of hiring. what about southern europe greece? jacques van den broek: no, well the small but thriving business throughout to the crisis but that says nothing about the economy and relatively a small part of the business. spain has really turned the corner. 20% unemployment but the economy is projected to grow around 3%. our business with just 15%-20%. this is an 800 million, 900

million business. spain and our people went through a rough time. caroline: tell me about where perhaps it is cooling down? people are concerned about the global economy especially emerging markets. is it there a bit of pulling back of hiring in china? jacques van den broek: no absolutely not. our chinese business is growing in finance engineering i.t. and is growing 40%, 50%. is the only thing we're worried about is getting more people to fuel our own growth. that not really an issue. caroline: it sounds positively optimistic picture you are painting across the world. what about uncertainties creeping in? british exposure with perhaps a migration when it comes to britain and the eu?

do those sort of questions worry you and your business? jacques van den broek: if anything, i heard about the discussion of migration is too one-sided. if we look at projections of europe and the workforce as a whole in still, europe needs to be more positive on certain types of migration. of course, we're not talking about the humanitarian disasters they go on in southern europe. that is something totally different. europe needs a of people. in europe, just 3% of european workforce in stem jobs is from outside of europe. where as it is 17% in the u.s. a far more proactive way of supporting themselves. caroline: is a diseases? -- is it visas. jacques van den broek: to secretary of commerce in the u.s. they are not giving out a number of visas.

still, compared to europe, europe does not have a very proactive. caroline: in terms of your geographical footprint, any way you want to expand and look at acquiring? jacques van den broek: yes, we are. we of acquired companies and the last five or six years. not surprisingly, we are not looking to go to new geographies. it is really all about being bigger where we are. we have a 5% marketshare the u.s. and definitely want to expand especially in professionals area, i.t. and financing. a market leader in europe. and professional area relatively small. and in japan. maybe surprisingly the second market by size world wise. definitely on the lookout. caroline: talking at the oecd

about lack of investments and how that's needed to fuel growth. you some a you are company willing to invest. what is making you confident to invest? the outlook of your business or you can get hold of financing? jacques van den broek: financing is not the issue. in our visit it is all peoples business. it is having more people. -- in our business, it is all people's business. we discussed labor and supply and demand. we think it's a great opportunity. caroline: wonderful having you here. optimistic sound and i wish you the best on the stage, oecd taken to the stage for the 2015 oecd. achieving genitive of ronstadt -- the chief executive of ronstadt. mark: thank you.

anna: you can join in on the conversations and get in contact with us. things you heard and the oecd interview earlier. caroline's interview and paris. mark: bart chart. how low can the yen go? stay with us. ♪

mark: time for bart chart. how low can the yen go? it broke down 125 to the dollar for the first time in 13 years. the low was for the yen since october 22, 2002. that the yellow circle. that was then. suddenly the dollar-again exchange is rather interesting. i have drawn two red lines.

two red lines which is the trading range to make 22nd. and that time, the dollar-yen between 116 and 121. a five yen range. it broke out on a mate 22nd. -- may 22nd. it has risen every day since. eight straight days. no coincidence that janet yellen said she expected to raise you is borrowing costs this year and explains the rationale for the sudden moves. renewing bets the fed will raise rates of this year. japan presses on with stimulus. 18 billion yen. the next peak to climb for the dollar against the yen on this chart going back to 2000. see that pink circle right over

there? that was back in 2000 by the way. 134.71. quite the way for the dollar-yen together there. for the record, the low for the yen was 358 on january 13, 1971. the high was october 28, 2011. that is the blue circle. since then the dollar has risen and the yen has dropped by 39%. what the next for the yen? top forecasters are divided by how weak they can get. one person sees the yen tumbling this year. second in the rankings and the bank of tokyo mitsubishi which is japan's biggest lender say it was stronger -- struggle to

depreciate beyond 125. the median forecast is for the dollar to stay around 125 yen after the end of 2015. jack is unchanged since february. the most bearish, the most bullish is prestige economics with 114 forecast. when will the u.s. raise interest rate and will the boj implement further monetary easing? it is worth remembering last wednesday, wrote a reiterated --kuroda reiterated he would adjust his stimulus program if needed. japanese officials have expressed concern about the pace of the yen's the while stopping short of calling for a halt. there you have it. how low can the yen go?

anna: 12 minutes away from the start of a european equities trading. let's get a perspective of where the markets might be going. a chief investment officer joins us now. patrick, good to see you. any thoughts on the yen and how it might be guided by said policy? patrick: in a camp where the fed, strong dollar in short yen and almost every currency. we are much more for the euro and not the yen. we think it is headlined and markets would be relying on measures that are not announced. anna: we do not see the yen at 358? patrick armstrong: that was the year i was born. mark: i should a showed that in. do you see the yen going to want 30, 140, the most bearish?

patrick armstrong: it will play out for several more years. we will get into a cycle where you will see small, incremental rises from the fed. i do not think we are anywhere near the inflation the bank of japan is trying to create before qe and a qe down. anna: sticking with central bankers, with that, tear from stanley fischer saying it is not lift off and people should not be worried with liftoff. not lift off anywhere. do you think it helps characterize what to the fed is trying to do? patrick armstrong: very worried about the consequences as we get into revises and during the summer a lot of discussion about to rate cut and does it mean it will be a long protracted going into a new normal which is lower than the last normal.

markets are still very vulnerable. once the first rate hike happens, i think you have u.s. multiples at high valuation in the u.s. market he equities -- market equities. mark: are you more worried about to the u.s. fed than greece? patrick armstrong: i think greece is pretty much constrained. the ecb and imf and that have the real exposure and contagion risk is nothing light years ago. therefore years ago italy and spain with the 6% yields. that would've been the demise. i think it's pretty much contain. anna: one of the big agenda items is going to be the payroll numbers out of the u.s. later this week. are you worried about some of the weakness? we spoke to a guess earlier and he is quite concerned -- against earlier and he is quite -- a

guest earlier he's quite concerned. patrick armstrong: they are looking ok. we'll just created all to 200,000. anna: those numbers seemed to spook some people. patrick armstrong: a bit of a mixed bag. we are seeing a rebound and getting back at 2.5%, close to 3% growth. the fed come september will look at clear unemployment numbers below 5%. inflation not around the 2% level but strong inflation. that will put them into the mindset where it will not be significant justification. mark: the s&p 500 and europe in equities, back in love with the bmw? patrick armstrong: something i did not enjoy selling. it went up to 120. and of a you supposed to be emotionally attached.

patrick armstrong: a cheap stock. a great, global brand. getting a dividend yield of close to 3%. the u.s. china and recovering economy in europe. it is well-positioned. anna: and disney is a play on "frozen." patrick armstrong: a play on "frozen," a bad pun on that. [laughter] patrick armstrong: the u.s. market, everything is very near. companies with a no growth, utilities that have a bit short. disney, which is the most powerful franchise with "star wars," "the avengers" merchandise when olive that and not paying a huge premium anymore. great brands and companies without commodity products like utilities and that she great valuation.

as should create valuation -- and should crea valuation. mark: will the newte "star wars" be the biggest ever? anna: patrick armstrong on investment other things. mark: six minutes from the start of equity. which stocks are we watching? reporter: looking at aol. really interesting one. it started when the ceo back his friend a pound he could change in the industry and 20 -- in 2000 and 14 years later and is above its ipo price. almost a year later, to the day exactly, a profit warning and then made the stop fall as much as 47%. still traded below the ipo price. well their earnings. the u.k. that gave and the

profit warnings and that's lower than analysts were expecting. they gave a number of reasons and they blame is the ipo for some of the actually because of the hype around it for -- around it. anna: what else are we watching? nejra cehic: tobacco companies. british american because they face was said they would appeal the court decision to find them for damages because people are seeking damages for addiction and other smoking-related diseases. the court ruled of companies have to pay total of -- mark: no details of the term. some m&a on this tuesday. thank you very much. anna: "on the move" is up next.

caroline hyde will have more from oecd. beautiful shots from that oecd conference. jon ferro. ♪

jonathan: good morning, and welcome to "on the move." a busy morning already. india cuts rates. the governor drops the benchmark rate in an attempt to spur private investment. midnight in berlin. europe's high-ranking officials hammer out an offer for greece. eurozone inflation data expected to rise 0.2%, but is the inflation scare over?

i will bring you those numbers. ftse futures up to 21 points. dax futures up by 31 points as well. >> will we get the higher open indeed? some of these are not showing yet, so we will have to come back to you later when they actually react. the cac 40 up just half a percent. you see the ftse 100 up a little stronger as well. that would be the second day of gains if we see those higher today. let's take a look at what we are watching. potentially going to see some big moves for the stocks this morning. starting with tobacco companies british american tobacco and imperial tobacco both trading low