guy: sepp blatter is set to be under investigation. what is next for world football and the waqatar 2022 world cup? hans: greek prime minister tsipras has to vienna. guy: as dutch taxpayers are warned they may lose 12 billion euros they leant to greece we will speak to the dutch prime minister mark rutte in paris.

good morning. welcome. you're watching "the pulse" live in london. francine lacqua just got a lot prettier. hans: francine is on assignment. we are getting some numbers coming in. guy: 53.8. a better number than the preliminary reading on that figure. we will check in on the euro and give you a heads up. but first we need to talk about football. the future of world football wide open after sepp blatter announced his resignation. this departure comes as u.s. prosecutors look into blatter. this according to people familiar with the investigation. >> although the members of fifa

have given me a new mandate and rehab elect to me president, this mandate does not seem to be supported by everybody in the world of football. supporters, clubs, players, those who inspire life and footfall as much as we do in fifa. guy: mark barton is here. there are a number of the questions this morning. and i guess the first when we have to think about is why -- if i resign, i'm not guilty of anything did he resign? mark: the net was closing in on him. that is what i am saying. think of it -- a week ago 7, 9 f ormer fifa officials were indicted. tick. after his election, which by the way 73 national members voted against him, so a third of the body of football voted against him. tick. the big one of course is to do

with his secretary general, the fifa number two. he is allegedly under investigation because he allegedly authorized a $10 million payment that u.s. prosecutors have characterized as a bribe. tick. the final tick, prosecutors are investigating blatter himself. there are a lot of reasons that are for blatter to finally decide the world is closing in. to quote him, he says "my mandate is not seem to be supported by everybody in the world football." after he won the election, there was outcry across the world. hans: how will sponsors react? what is the next step in all this? mark: when it comes to sponsors they have been vocal after last wednesday when the indictment heaven, when swiss -- they have been vocal when the indictment

happened. blatter wins nothing. and after he steps down, they have come out. coca-cola "this decision will help fifa transform itself into a much-needed 21st century institution." visa. they are paying lip service. many might say why didn't they criticize blatter after he won the election? hans: to be inside those boardrooms when coca-cola and visa were drafting the statements? mark: they are paying tens of millions of dollars to be associated with the most popular sporting brand, the world cup. . the world cup every four years. you are spending 10 of billions of dollars to be associated with it. it is difficult to extricate yourself from that. that is a nice way of putting. guy: given the fact that he

is gone, a major changes happened. do tehyhey, if you are coca-cola do you go, we want some of the new? we need to generate a completely different story. does anybody inside fifa have the credibility to do that? mark: he's 65. he was the one last friday in a meeting with blatter said, step down. no. he said, if blatter wins it will destroy football. yesterday platene came out and said it was the right decision. is he the man? listen to what the former fifa ethics committee says. >> i would've been happy with prince ali to become president. he is a young man. he has got no baggage. everything about -- i hear about

him is good. i would've been happy with him. michel has a problem in the sense that he is the european chief. and the developing world is not like to see a european chief even though blatter was european but he was seen as a friend of the developing world. so, the 133 nations that voted for blatter would not be happy with michel platine. mark: there is only one country the developing world hate more than europe. that is the uk. david gill on the executive committee who refused to take his position after blatter's victory would be a great choice. he said there is no way in one million years they will vote for an english president. plattine will have a hard job

persuading those 133 that voted for blatter. he is the favorite. this is going to run and run. hans: i can think of one lmore nationality that is less popular. guy: the question today -- should qatar host the 2022 world cup? there is another country that could -- hans: it could go elsewhere in north america. i will not say where p or toronto is good. -- toronto is a good place. guy: we're going from the frying pan into the fridge. hans: canada in august can be nice. guy: for the american to be nice about a canadian something is very much wrong. we will talk about the other big story we are focused on. hans: greek prime minister

tsipras heads to brussels. in a bid to break the stalemate in those bailout talks. it is ecb decision day. and mario draghi is expected to talk greece as well. let's head to athens. nikos, let's start with you. is this an ultimatum? nikos: it definitely talks and walks like an ultimatum even though neither greece or its creditors will admit it. the fact that -- representing creditor institutions spent most of the day yesterday discussing among themselves on the details of the offer and not with their greek colleagues. also the fact that the leaders of credit institutions as well as the leaders of france and germany discussed the matter in a private, in a secret

late-night meeting in berlin on monday. a meeting in which the greek prime minister was not even invited. look even if it is not a take it or leave it proposal, it will be a take most of it or leave your proposal. there is not much room for negotiation or maneuver, as time is running short before greece's bailout expires at the end of this month. guy: draghi was in that meeting on monday. he was invited to join a discussion. the ecb a major actor in the story. do you think the ecb are on board with this kind of not take it or leave it offer, but do you think they are on board with pitcher of record -- the direction coming from the creditors? paul: the ecb wants to see solution. it does reflect that mario draghi was at the talks. he has to be involved at the top level. until a political decision is

taken on what to do in greece, the ecb is carrying the can. the greek central bank by offering emergency aid to greek letters but standing behind that is the ecb. the implication, should everything fall apart. draghi gets involved. it is not a direct creditor but it does hold greek bonds from an earlier issue. and he wants to get this resolved. it seems to me pretty much everybody has that position. only greece is the one not meeting its demands. hans: how is the left wing reacting to talk of an ultimatum? nikos: well, it is not going down well. it is going to be a difficult deal to swallow for the greek prime minister and most of his cap members, let alone -- cabinet members, let alone

backbenchers in his own party. it would be easier if it included some sort of commitment to debt relief something that would sweeten the pill. as far as we know, the deal which is going to be presented to mr. tsipras today will only include policy commitments policies that greece needs to implement in order to unlock bailout funds. not an explicit commitment for debt relief. so, it is going to be a tough one for mr. tsipras who may have created expectations which he cannot control in his own party. and in the greek parliament. guy: what is the focus of today's press conference going to be? do you think the first question will be on greece or how the ecb disseminates information to the market? where is the nucleus of the story? paul: it is always hard to tell. but i think you can bet that greece will be one of the

questions out there. dissemination of information to the markets after that. his speech of may 18 is another one. the 31 is bond purchases in the pace in which they will continue. given that we will see some increase in the pace before the summer lull. and we've seen bond yields rise. all of these factors are going to be taken into account, but greece is the one that hangs over everything. even as the economy picks up greece is always there. hans: thanks for your insight. guy: more coming up when it comes to the ecb. we will have the decision at 12:45 u.k. time. that will be followed by the news conference we all looking forward to. 1:30 u.k. time live and in full on bloomberg television. hans: here's a look at what else is on our radar this wednesday morning. australian save the least -- helping the economy grow faster than expected. gdp advances 0.9%.

the nation savings ratio drops to the lowest since 2008. guy: there was a gathering in veienna and head of a meeting on friday. saudi arabia led opec to refrain from cutting oil output at the end of last year despite the collapse in prices. hans: david cameron faces his first weekly question time since his election. he will take questions from harriet harman who is acting as interim labor leader as the party seeks a permanent successor to ed miliband who resigned after losing the election. guy: what else if we got coming up? 9:25, we will be talking greece. the dutch prime minister, mark rutte, is at the oecb forum in paris.

we have unemployment figures. we will bring you those numbers as soon as they break. hans: and we will also be speaking to the executive director of the international energy agency, maria van der hoeven. stay with us right here. ♪

guy: good morning.

you are watching "the pulse" live on bloomberg television. we are on the radio, streaming on bloomberg.com/europe. we are on your tablet. we have got it covered. opec members are gathering indiana ahead of their reading on friday when -- will decide what level of output to produce. the mood seems upbeat. >> the situation in the market is improving, yes. guy: ryan chicolte is on the ground ahead of this meeting. what is the mood music going into this? pretty positive at the moment. is that the sense we have at the moment from opec? ryan: optimistic is a big word but many people thought they could have a disaster on the back of all of the production we have seen. we talked to 34 different oil market watchers. 33 of them think that opec, the

12 countries that make up opec are going to keep the production target exactly where it is. i caught up with the opec secretary-general. got a sense of why they might do that. have a listen. what do you think about the markets? >> i see some positive signs, some positive developments. ryan: the delegates are happy with the price? >> i have no idea. ryan: i guess $100 a barrel is better. >> they will talk about -- or not. ryan: it is fair to say that not all the delegates are happy but they are happy with the direction they have seen the price move in since the last meeting. oil prices have come up i-40 percent. we have seen relative stability in oil prices. we are going to have to wait until later in the week but there are some market watchers who are saying that opec

theoretically, barclays included, that saying could raise the production ceiling in the event that iran returns to the oil market if sanctions are removed. hans: this is not your first rodeo p what else can we expect that a? -- what else can we expect today? ryan: this is the opec seminar, both today and thursday. it is an event that takes place every two years. it is effectively the opec ministers plus the biggest executives in the oil industry. it is about dealmaking, talking to one another. what the ministers try to do at these events is keep the discussion about what they are going to do amongst themselves until friday. they want to avoid talking about that right up it i caught up with nayami. everybody wants to know what he is going to do. do you think your strategy of dealing with the oil market is working? >> wait until friday.

ryan: what would you like to hear over the next two days? a view on shale oil? >> no. on the whole energy sector. ryan: what do you think that is interesting that is going on right now in the energy sector? i know you said it is an opportunity for saudi arabia. >> an opportunity for everybody. ryan: this week the ceo of exxon is here. the ceo of shell is here. and bob dudley, the ceo of bp is here. i will be talking to them at 12:1 0 your time. stay with us. guy: looking forward to that conversation. hans: up next, we will be joined live from paris by the dutch prime minister mark rutte. excited about that interview. ♪

guy: good morning. you're watching "the pulse" live on bloomberg television streaming on tablet and your phone on bloomberg.com. let's talk about the ecp and let's talk about greece. a rate decision coming up. something we need to focus on. more so the kind of language surrounding q.e. the issue of

inflation-deflation. then there is the issue of greece. paul donovan joins us now from ubs. good morning to have leverage the ultimatum point on greece? paul: possibly. it's europe, there is never a final, final ultimatum. europe keeps rolling on from crisis to crisis. i think we are coming close, but europe has been creating a deliberate sense of crisis because you never get anything done -- the only way you get anything done in europe is a great sense of crisis. yes, we are moving towards a conclusion for this deal. until we negotiate the next bailout. i think we will get there. hans: what is fueling your optimism lines from athens? it's rational not to default? paul: it is rational not to default to the ecb because then you stop money going to the

banks. they close greece leaves the euro and who's next? if you can default to anybody defaulted the imf because they have limited authority. christine lagarde would be upset by that but still, this is one of those occasions where you need to keep the money going to the bank system. and this has always always been the issue. monetary union's survive or fail on their banking systems. so the banking system in greece has to be kept on life support. guy: that's draghi's job? paul: this is where the ecb becomes enmeshed in the sort of political world and they have to get their hands dirty and politics because monetary unions are political and economic. the euro was created by politicians ignoring the advice of economist. and draghi have to get the economics back.

hans: there was not a single to center in your ranks? paul: not from any, good quality economists. guy: when you look at how this is going to shake out, how does it play out another capitals? you give greece more money. you keep them on a drip feed for now. you get through these and -- through hthis, this is the easy question. the more difficult question is do we give them significantly more afterwards? paul: exactly. i think the general solution for greece is not yet understood. greece needs a nominal interest rate anonymous -- a nominal cost of borrowing. that is what is going to happen. the question is how do you achieve that? how must you engineer and increase? that is where the problem comes through. if they come in with a situation

that lowers the cost of borrowing but you still have growth coming through, that would be sufficient. guy: we will pay a few bills. we will be back with paul donovan in a moment. ♪

guy: good morning. you're watching "the pulse." we are getting development relating to the fifa which we want to bring to you. we are getting the first across the tape. issuing red notices for former fifa officials in connection with the notices that have been part of the u.s. investigations. hans: this seems to be close to an arrest warrant. guy: a red notice to seek the location and the rest -- hans: it is an arrest. hard to arrest someone if you do

not know the location of them. guy: interpol stepping up. this has been led by the u.s.. interpol issuing red notices. we do not know which people are involved with it. but it says former fifa officials which may point us in the right direction but there is a series of former fifa officials -- hans: i would imagine that for purposes of this sepp blatter is still current, so this would not apply to him. guy: let's not speculate too much on that. but nevertheless, an interesting development relating to what is happening at fifa. and i think fits part in parcel with the news we have had her over the last 24 hours. hans: the organization for economic cooperation and develop it has slashed its global growth speculation. the organization says the world

economy will expand at 3.1%, down from 3.7%. let's hear from the general secretary. general secretary: this is once in a year event, the one that we put out in our ministerial council meeting. and it looks a lot better than last year. now it may not look as good as the one we put out an interim, we put out in march. and the reason is mainly that the first quarter of 2015 has turned out pretty flat mostly because in the united states there were extraordinary circumstances that intervened. very bad waeeather which kept people inside and from consuming and doing what they normally do and economic life. and the other question, there were strikes in the pacific. and that stopped trade and production. guy: talking of the global

economy, let's talk about one particular part -- the u.k. we have dated this morning. the data, not as rosy as we may have anticipated. the market services pmi 56.5%. we are getting a big move in the pound as a result of this data. naturally what is happening on the screen. you can see a bit of a drop happening as we speak on the cable rates. 1.5281 is where we are trading. 4% down on the day. we were down further over the last two minutes. hans: a little bit disquieting. i do not know how that will greece factor into the overall greece story. as we pray for the -- as we prepare for the next oecd meeting. paul donovan. i'm going to ask you to say what you set off air on there. you do not like pmi. paul: the markets have to do

something. one has to keep traders in gainful employment. but that is part of the problem. the sentiment data over the last few years has tended to increase in volatility relative to the underlying economy. sentiment is increasingly tending to overreact. part of this is the fact that the way we get our news has changed. guy: blame us. paul: basically what happens is you are asked, what you feel about life? i just saw on cnbc or in the ft, things are getting worse. they are getting better for me but i do not want to sound like an idiot. bloomberg tells me things are getting worse. there is this self-feeding spiral. it has been evident in the equity markets. so the volatility of this data means that whilst the general direction is ok, the point-to-point readings, we cannot use that. hans: what economic data do you

like? is it all the top spinning to quickly? paul: i like the economic data that backs my view. hans: i would like stories that make me look good. paul: exactly. hans: talk about a circular loop. paul: what i am looking for is -- data on lending and data on employment and data on household income tends to be reliable but these are critical issues. eta on things like investments have become less reliable recently because of structural change. so one of the things we have been seen recently is the growth of self-employment. if you are self employed in you invest in a computer, is that investment or is that personal consumer spending? and that becomes a difficult point. hans: self employment how will that affect the employment data? paul: the great thing as it does include self-employment.

we capture that side of things. what we do not capture is the consequences of this. in the u.k. today, something like 74% of businesses do not employ anybody because they are all self-employed people. now that is up 10% over the course of 15 years. so you have ended up with a situation where more people are employing themselves as consultants. that affects a lot of the sentiment data. businesses are not necessarily businesses anymore. they are tending to outsource. it affects things like the investment data. but when it comes to employment, we managed to capture that. when it comes to consumer spending, when it comes to stuff related to the household, we congenitally capture it. that is a tricky question because it depends on where you are looking geographically and it depends on which sector of the population you're looking at as well. the issue we have with the u.k. compared to the united states where there are some clear capacity issues, is that the u.k. does have a spare reservoir

of capacity in the labor market which we store for the most part in poland and spain and ship in as required. and so the migration is something which actually limits spare capacity in the u.k. and the way that it does not in the united states where the hiring groups -- you will see real capacity issues. hans: i want to get back to the data. what is reliable and what is not. when we look at -- numbers and germany. both of those are sentiment surveys. do you trust either of them? paul: it is not a case of dismissing them out of hand. we have to have less confidence in those numbers. hans: do you have a preference? paul: one is based on economist, so clearly -- the issue as well that is worthwhile remembering is that a lot of these surveys are conducted by institutions that have political agendas. now this was a very clear issue with the nsib survey in the

states a little while ago. there has been a lot of -- where they were pushing a specific agenda in. regardingformal health care in the united states . guy: the polling in the u.k. has been really accurate. given all of that, the fact we do not trust the data, we do do not trust large swaths of data when central banks are making policy and you talked about the lack of it how do we trust central banks of they are making policy based on numbers they know will probably -- were not as problematic as they are making them out to be? paul: the central banks are looking that they have two issues. they look at a broad set of indicators to come up with their decisions. on top of that, they have to communicate those decisions to the markets and the general public. so you simplify and the

communication, but the actual decision is based on fairly sound underlying data. guy: an economist. hans: i think we should change our twitter question two what will the traders at ubs -- we can handle it. i do not know how your traders can take it. guy: let's move on and get you to the top stories in you to know about. visa coca-cola, mcdonald's are some of the corporate names that have welcomed the resignation of sepp blatter. his departure comes as u.s. prosecutors look into blatter as part of the corruption probe. within the last two minutes interpol has issued a red notice for several former fifa officials. hans: tsipras heads to brussels today where he is expected to be made a final offer ahead of the debt repayment on friday. eu leaders and christine lagarde

met on monday to draft a potential deal. but -- due to to meet with juncker as well. the dutch finance minister the head of the euro group. guy: australian save the least since the global financial crisis in the last quarter. this helps the economy grow faster than expected. gdp advanced 0.9%. the nation's savings ratio dropped to 8.3%, the lowest since 2008. hans: as opec members gather indiana, we will look at what could be next for the oil industry. ♪

hans: welcome back to "the pulse ." saudi arabia which led opec to refrain from cutting oil output despite a 40% slump in prices says its market strategy is working. it comes days before the organization of petroleum exporting countries meet indiana on friday. for more we are joined by an oil market analyst. thank you for joining us. what are we going to get out of vienna? >> it is a bit difficult to guess what decision is going to

be there because we have learned from our previous meeting in november, the matter what you think, they ended up coming up with a completely different decision which is a paradigm shift. however, a decision we can expect that could have a more bearish impact on oil prices has a more high probability than a decision on cutting back this moment. we have a reason behind it because i think looking at the fundamentals and opec policy, saudi arabia for three reason has first decided to maintain its market share policy. and that is what we have seen since november. two, saudi arabia try to diversify away from its traditional export marketplace. from west to east, which is asia. in has been threaded by its own members iran and iraq. and finally, the decision to be moved away from the oil ministry and being made an independent entity. all three of them are laying the part for unlikely -- effects.

guy: mr. naimi is talking as we speak. it has a risk premium built into it. we can speculate. can i infer from that that he is saying that he wants to take the oil price lower? prices are higher because of the risk premium. we think the prices can go lower. that is how i would read that. >> i would not be surprised i think the financial markets are slightly ahead of the physical markets. if you look at the physical markets in terms of the numbers, we are close to 200 million barrels above last year's level. one one hand people are saying that oil stocks are not rising as much. you also have to look at the oil production because a lot of the refiners -- are processing at really high rates. in the middle east refineries on the new ones. to be honest, i think a correction is due. it is just a matter if it is

going to happen soon after the opec meeting or takes a more time before the markets realize it. hans: these new forecast on the -- on global growth, will they affect the price long-term? >> first of all, the way we look at the markets for this year, by the end of this year we are expecting markets to get tighter because the demand was seem to be improving significantly. if you look at india and china, the number of demand for oral products of has been strong recently. if the oceecd numbers are true they have an impact on growth for this year. they get worried again for the balances the end of this year which could potentially keep pressure on prices for the rest of the year. guy: is it significant that people like bob dudley are going to the seminar in vienna? the fact that they are talking to the big oil majors at the meeting. >> it is significant because again, oil markets that are oversupplied that oil majors are

far more worried than companies like national companies in countries such as saudi arabia kuwait -- who have not cut back their capital. they are going ahead with their plants. they have absolutely no intentions of cutting back heard it is international companies that are suffering. the smaller drillers. the presence of these people in vienna does not surprise me. to be honest. guy: thanks very much, indeed. joining us from -- hans: here are bloomberg's top headlines. hundreds of passengers from a chinese crew ship that capsiz ed are still unaccounted for. 450 people were on board the eastern star when overturned or chinese television said that 50 vessels are involved in the rescue operations. guy: the u.s. congress has voted to stop the nsa from collecting bulk records on american phone calls.

while revising three other anti-terrorism surveillance programs. it expired on monday. the passage of the freedom act was halted by president obama -- hailed as probably the right word -- as a significant -- in balancing security interest with the need to protect civil liberties. hans: david cameron will face his first weekly question time in the house of commons following his election. he will take questions from harriet harman who is acting interim labour leader. as the party works to elect a new permanent head. guy: we have a lot have a lot of developments when it comes to fifa. the ongoing scandal surrounding football's world governing body. a small private bank owned by a brazilian billionaire appears more than 20 times in the u.s. prosecutors corruption charges against the organization. we are joined with more. tell us about this bank. why is it being mentioned so many times and what do we know?

>> it is called delta national bank and trust. it is a private bank controlled by a very reclusive brazilian billionaire. he is 94. now this bank actually has $467 million in u.s. assets and it shows up more than two dozen times in u.s. prosecutors corruption charges against football officials. you know what? it is not the bank's first brush with scandal. over 16 years, it has had three previous run-ins with authorities on two continents. the most notable was in 2003. this is when it pleaded guilty and was fined for failing to report translations linnked t -- linked to a colombian drug cartel. it continues to operate. what happens now u.s. prosecutors said some of its business included protests -- processing millions of dollars in bribe payments from a sports marketing business to soccer officials affiliated with fifa.

it was not named as a pendant nor accused of any wrong doing by the justice department. delta has to climb to comment. hans: the $467 million in u.s. assets to which means that if ambitious prosecutors want to look at that -- they have the ability to attach assets. and they can make real trouble for them. >> wha what is interesting is that if you a small private bank has been able to keep trading despite the fact it had a criminal conviction. and what is interesting as well is that actually at times, according to the u.s. justice department, fifa bribes were channeled from delta through larger banks, including citibank and jpmorgan. we are told by the justice department that over the course of a decade, delta wired tens of millions of dollars on behalf of hsbc, wells fargo, and banco do

brasil. guy: that is one angle to the story. we have breaking developments surrounding the fifa story. we are getting details coming off the interpol website related to this red notice. we have some of the names -- six names that have had red notices. they include jack warner. the individuals concerned wanted by national jurisdictions and interpol's role is to assist the national police in locating these individuals with a view to their arrest and extradition though they cannot compel any member nation to pursue that. but those are the -- i guess you call the mugshots. hans: is a mug shot after you have been indicted? guy: that is a good point. they are pictures of the people on the interpol website. hans: who need to be found and arrested. we are comfortable saying that these are arrest warrants.

up next, could a rise car prices signaled the u.s. economy is back on track? ♪

guy: welcome back. gm and chrysler's are selling more cars. does stthis signaled the u.s. economy is starring together momentum? matt: u.s. auto sales in may

beat analyst expectations. absolutely crushing it with fiat and general motors posting higher numbers than analysts expected as far as gains. ford posting the decline that was not as steep as analyst affected. as far as the european automakers go, americans are watching closely the race between bmw and mercedes to create the biggest -- to achieve the most luxury car sales. bmw inched closest to mercedes in the month of may with sales o f 31,000 cars. mercedes had sales of 29,000. they are still ahead a bit b. so, we are watching that closely but also watching the sales of trucks. that is what boosted the segment across all brands. bmw had a 34% climb in sport

utility vehicles. huge game for chrysler as well, making up almost 80% of fiat-chrysler's total sales. for d and chevy normally doing very well with trucks. ford had a decline in its f-150 segment because they cannot make them as quickly as they need to to meet supply. chevy on the other hand had an increase of 11% in its silverado, the heavy duty trucks did very well but not as well as the midsize trucks. chevy's colorado as well as toyota's takoma. the midsize showed a 51% increase as gas prices remain low. guy: we leave american cars in turn our attention to your. mark rutte, the dutch prime minister, is speaking at the oe cb. let's listen in to what he is

saying. >> more sanctions? prime minister rutte: the european union has decided to roll through the existing sanctions. they will stay in place until the minsk protocol expires at the end of december. you can never guarantee or there will not be more sessions. at the moment, i would say for the european union it is important to hold onto the sanctions we have. and effectively have decided to continue them until the end of december. >> to bring it back to the gf rexit, will it deal be done by the meeting of the g-7? prime minister rutte: discussions are taking place between the euro group and greece. the euro group have asked the three institutions formerly known as striker, to have day-to-day discussions with greece and make sure there comes a package that a package

emerges which basically implements what previously government has promised. it means that the new government can take out certain measures and put in place other proposals as long as you add them up, the result is still the same in terms of the macro economic numbers. the fiscal impact as the previous agreement. >> what are the key sticking point? prime minister rutte: i think what the discussion is focusing on his reforms and pensions, labor markets, and fiscal consolidation. these seem to be --three or four of the main topics. >> there is another key issue and that is of britain leavin g the eu. you met with david cameron. what solutions are there? prime minister rutte: the main issue is you cannot have a debate about the u.k. versus

europe. i would love for a situation where you can have a debate how can we make a better deal? a better functioning of the internal markets, not just good but also services like digital energy, capital. important issues. goats, but also services like energy and capital. secondly, he once a european union that is more focused. leaving to the member states what can be done at the national level. a more focused european union. two issues that you can easily come to an agreement amongst the 28. >> the french economy minister suggested that we should go to a frame for the u.k. this day and the european union. mr. rutte: it has always been difficult. you could argue we always have many countries in the eurozone. countries working together on

the issue of a tax on capital when you make certain financial transactions -- a transaction tax. 12 or 13 countries are working together. we already have a europe of many states. the debate is how to keep the u.k. in and focusing on how to get a better deal for the european union. >> bring it back to your own economy. we've had a downgrade by the oecd. you are looking at a growth of 2% for the dutch economy. are you confident? mr. rutte: i'm not satisfied that we are happy that the numbers are better than we expected half a year ago or 12 months ago. at the same time, we want to bring the unemployment levels down further. we have many new people the

labor force is expanding. overall, the dutch economy is in better shape than a year ago. >> is there a risk of a bubble in housing markets? mr. rutte: i don't think so. house prices are rising, but not at a level that you are near a bubble. >> we have the ecb meeting later today. how much has quantitative easing helped? mr. rutte: i try to not comment too much on the qe decision of the ecb. my where always has been with quantitative easing that it's taking why testing -- taking away testing from strict reforms in member states where this is necessary. i hope those member countries that should be high on the agenda with qe and therefore

low interest rates that these countries maintain their focus on these two issues of structural reform and fiscal consolidation. >> would it be preferred that qe stop earlier? mr. rutte: we have division of labor. it is up to the ecb to decide monetary policy. i try very hard not to comment. i do see one risk of the qe it takes away pressure and it could take away urgency to put in place restructures structural reforms. >> thanks. mr. rutte: thank you so much. guy: the dutch prime minister mark rutte speaking to caroline hyde at the oecd meeting in paris. interesting headlines. talking about greece plan b does not talk about a

negotiation. you've been listening to mark rutte. normally we take a break. welcome back. great to have you with us. particularly our friends in the u.s. that is not francine lacqua. hans: we've got another great post to walk us through everything. guy: we will talk about what has happened over the last hour. the fifa story, interpol has issued red notices for several members. following set letter' -- sepp blatter's departure yesterday. >> although the members of fifa has given me a new mandate and have reelected me president, this does not seem to be supported by everyone in the world of football. supporters, clubs players, those who inspire football in

fifa. hans: we are joined by mark barton. i jumped the gun earlier. i was excited to get your take. tell us what we know about the arrest notice. mark: we know the names, among them are the people indicted by the u.s. department of justice last week. names that are familiar to us. only the six out of the 14. 9 out of the 14th were current or former fifa officials. the red notices are jack warner, probably the biggest name. the one that allegedly accepted a bribe to vote for south africa to hold the world cup. nicholas leoz, and paraguayan. 4 are sports marketing

executives. the intermediary is jose margulies. they're part of the investigation into sports marketing executives of fifa officials and the americas which allegedly led to the awarding of various tournament contracts. apparently this behavior went on for 20-odd years. and i mounted, allegedly, to the tune of $150 million. just a clarify, red notice is not an international arrest warrant. it is one of the ways in which interpol informs its member countries that an arrest warrant has been issued by an individual or a judicial authority. it is not an arrest warrant. hans: so the arrest warrant could have originated in the u.s.? we do not know if paraguay, where they are or whether or not

-- mark: they cannot compel any country to arrest the subjects of our red notice. we know the names, it is six out of the 14 we knew. nothing new when it comes to names. guy: what is interesting overnight is the talk that sepp blatter may be investigated as well. he has stepped down. none of this is confirmed. how much more detail and we know? he said last week, i have nothing to hide. now he has resigned, according to a person familiar. mark: they are looking into blatter as part of their probe. swiss prosecutors are not investigating the current and soon-to-be former president of fifa. that is all we know, according to a person familiar he's going to be investigated. that could be one of the reasons why he stepped down. the second reason is the bombshell that dropped yesterday according to another

person familiar, fifa's number two official, the secretary general jerome valcke he allegedly approved the timely dollar payment. -- the $10 million payment. this goes back to jack warner. he allegedly accepted a bribe from fifa officials, the south african government and bid team to thought for south africa to win the world cup. these are the allegations. according to this person familiar, jerome valcke authorized this $10 million payment. blatter allegedly under investigation. valcke, the finger-pointing at him. a third of the national associations did not vote for blatter. the net was shrinking on sepp blatter since his election victory. guy: i'm looking forward to

reading the dossier report. which i assume they are going to publish. mark: this is a report which they basically prompted, asked the u.s. prosecutor michael garcia to investigate the bidding for the 2018 and 2022 world cups. they basically released a truncated version rather than 400 pages, 40 pages. garcia said you misrepresented me, he resigned. apparently they will release it. when these are done. and it will be redacted. you are used to this sort of thing. lots of marks on it. will guide be able to read it and experienced form? probably not. guy: qatar says it has been cleared of all wrongdoing by the garcia report. we will see what comes out.

our twitter question of the day. should qatar keep the 2022 world cup? let us know what you think. fonts seems to think it should be played in america. hans: north america. mark: i did not say which america. the last time england held the world cup was 1966. you are saying a world cup -- hans: a country that can hold its borders, is not dissolving in front of our very eyes. in my allowed to say that? alexis tsipras heads to brussels where jean-claude juncker will present him with a proposal in a bid to break a stalemate. mario draghi is expected to talk race. -- talk greece. joining us from athens and frankfurt. is this an ultimatum? >> well, it feels like one.

clearly it will not be communicated as one. especially in athens. it is final, that is for sure. there's little room for maneuvering for prime minister alexis tsipras to strike a better deal than one proposed to him by jean-claude juncker tonight. it seems it is not close to what the greek side proposed. the creditors are clear-cut and what they are demanding from greece that is implementing reforms on crucial aspects they have been talking about for so long. guy: paul mario draghi was at the meeting monday. he's got a seat at the table. he's the guy keeping the greek banking system liquid at the moment. the negotiations are getting more crunchy. he has been here before. do you get a sense that draghi is comfortable with where we are

right now? the ecb is on the hook for a lot of money here. paul: comfortable is certainly not a word he would use to describe his physician. -- his position. it is a difficult situation. he has tried to keep the ecb out of politics. a lot of what happens with greece is a political decision. he has to be at the top table. he was in ireland with merkel, -- he was in berlin with merkel, hollande and the rest to discuss what greece has to do. the ecb is allowing the bank of greece to give emergency liquidity to lenders, keeping them afloat. should the ecb say you cannot do this anymore, the house of cards could come down. a very uncomfortable position for mario draghi at the moment. that is something he will have to address at the press

conference. guy: what do we know about mr. tsipras' movement tonight. seems to be confusion about whether or not there's is a big meeting taking place with dijsselbloem and tsipras and other organizations including the ecb, possibly. there seems to be competing information floating around. vassilis: a greek government official said there would be no meeting between tsipras and dijsselbloem today. probably jean-claude juncker invited dijsselbloem but prime minister tsipras said he's not going to be present in such a meeting. yesterday we had a paper id greek -- by the greek government andimed to mr. dijsselbloem he said greece is not aimed at a deal. the paper said people should be

working towards a deal. guy: an interesting day. vassilis from athens paul from frankfurt. hans: live coverage of the ecb decision at 12:45 u.k. time, followed by a news conference. ♪

guy: quarter past the hour. you are watching "the pulse,"

live from london. it's ecb decision day. all eyes on president mario draghi's news conference this afternoon. how long will we have to wait before we get a question on greece? lots of things happening. let's figure out where we set. rbs's head of microcredit researdchch joins us. let's talk about what happens this afternoon. is this an ultimatum being pointed at greece? alberto: it is a take it or leave it offer from creditors. it seems it is a bit more flexible than was a month or two ago. greece has stepped back on some of the red lines they were digging their heels on. the greeks are not accepting it. they have said they are opposing

an offer and there's a 47 page document they are presenting to the creditors. we've got a few days before friday, the first imf payment in june. there are more payments and they do not have enough money. my prediction is the greeks will capitulate and sign an agreement. there's no -- there's risk for the greeks to risk a missed payment, a referendum and maybe losing their jobs. hans: you think this as politicians going through the motions, pretending to put up a fight and at the end they will cave? alberto: that is one point. the greek people are realizing the stalemate is eating up the economic performance of the country. the summer months are the most important for tax revenues. i've booked my holiday to greece. tourists are not going as much. guy: tourists, tax collectors --

hard to tell which ones these people are. i'm joking. alberto: june and july are the biggest tax months. if there is uncertainty they will lose tax revenue. greek people do not want the government to fight anymore. that is consistent in polls. hans: we're not going to get anything on rates from mario draghi. are we reading his body language on how long quantitative easing is going to last? what do we hope to learn? alberto: the first thing that is important to see is if mario draghi is going to raise rates qe will last as long as it is intended -- september of next year. with higher inflation's number people are questioning will qe wns -- qe end sooner. draghi has been reiterating that qe will last a long time.

the transmission mechanism of credit is still weak. banks cut lending in april. the qe recovery has petered out a little. the other thing is the ecb is now more flexible on purchases. it is not buying only $60 billion each month. it is able to frontload or backlit purchases. we had a strong rate selloff in bunds and treasuries. perhaps frontloading and back loading will put a floor or ceiling on where rates can go. they buy more if rates go higher and less if rates go lower. hans: they could bracket it in. guy: manage the bond market in a spectacular way. that is a real management. alberto: the idea is to use it for august. a lot of people are on holiday. in practice, they could manage situations where yields could go

negative and some central banks do not like buying bonds and negative yields. guy: is there a link between inflation and qe? does the link exist? alberto: the link between inflation and growth central bankers have lost some control over economic performance. this is because monetary policy has been used as the only instrument to stimulate growth for the last decade. what we need is structural reform. every credit cycle in the last 40 years has been followed by lower interest rates and more credit. we see that in the u.k. with more private borrowing. everycorporate are too levered. they know this is a financial markets trick. even if interest rates are low people are not borrowing as much because they know there is too much debt in the system. hans: thank you for your time. coming up -- guy: we're going to talk about

opec. gathering in vienna. what happens next for the oil industry. we will talk about that next on "the pulse." ♪

hans: welcome back to "the pulse," live on bloomberg television and streaming on bloomberg.com. opec members gather in vienna

ahead of their meeting friday, when the cartel will decide on output. ryan chilcote is on the ground. tell us what you have been hearing. ryan: hans the expectation is -- we talked to 34 oil market watchers. 33 told us that the cartel will keep productions at 30 million barrels, right where it is. why? part of that is that is what the saudis want. what the saudis want is what the saudis get at the cartel. the saudi strategy is trying to push shall producers out of the market. it has not been a disaster for the cartel. i caught up with the secretary-general of opec short while ago and asked him what he thinks will happen in the second half of the year. mr. al-badri: i see some positive development. >> the delegates are happy with

the price? mr. al-badri: no idea. ryan: $100 a barrel -- mr. al badril: we talk about -- ryan: a tiny but growing minority of people who think there is a chance that opec could raise production. barclays is one of them. the idea is they are breaking the rules anyway. the ceiling is 30 million barrels and they are producing collectively more than 31 million barrels. saudis are pumping like there's no tomorrow, in may they produced more than ever on record. iraq is ramping up despite the threat from islamic state. then you have the issue of iran. we have negotiations, the

deadline of june 30. if iran returns to the oil market and is able to export more oil than it is now, maybe some opec delegates are saying there should be room for them within the production target that they are already exceeding. we will watch. this should be an interesting one. guy: it is not just the opec ministers, pretty senior guys from the oil industry, the global giants. why are they there? why is bob dudley there? ryan: we will be talking to bob dudley in about an hour and a half. over the next two days, opec has what they call the seminar. it is on wednesday and thursday. on friday they get together as a group. it is during the seminar that they get together with oil executives, rex taylor and bob dudley and exchange views and

do deals. guy: ryan chilcote covering vienna. when we come back, we will talk fifa. that story continues to develop. we bring you up to speed with the latest details. ♪

guy: half past the hour. you are watching "the pulse," live from bloomberg's european headquarters. i am guy johnson. hans: i am hans nichols, sitting in for francine. i do not know how well i am acquitting myself. maybe that is the. twitter question interpol has issued red notices for fifa members following sepp blatter's resignation. prosecutors looking into blatter

as part of their corruption probe. guy: the greek prime minister alexis tsipras heads to brussels, where he's expected to the made a final offer ahead of a debt deadline friday. the imf met monday to draft a deal for greece. tsipras says his government plan is the only one on the table. due to meet, we think, european commission president jean-claude juncker later today. there's talk that there might be a dijsselbloem meeting as well. hans: australian economy grew faster than expected. gdp advanced 0.9% compared with estimates of 0.7%. the nation's saving ratio dropped to the lowest since 2008. guy: you need to know what is happening in the markets. less gas jonathan ferro. jonathan: ftse 100 flat, dax up.

a selloff of almost 1%. losses on the periphery down 1/3 of a percent in spain and italy. the moves or in the euro area bond market off the back of the punchy cpi figure in the eurozone. 0.9% on core cpi. bund yields surging 16 basis points biggest selloff since august 2012. today 0.7 3%. monday, that was south of 0.5 percent. spain and italy, yields north of 2%. spanish yields stay above 2%. big moves in the bond market echoed by big moves in the fx market. the euro pumping higher by 2%. today we are weaker by about .4% on the day.

some punchy moves ahead of ecb decision time. how does mario draghi egg knowledge those improving inflation expectations? on the other hand, stare down a global bond rout and stronger euro. something for later. hans: thank you. in the next hour, tom keene. tom joins us from new york. you are going to continue the conversation about a little country on the aegean. tom: we will talk about greece. important meetings in brussels. stare down between tsipras and the rest of europe. pushed aside by the oecd announcement. it is important, catherine mann chief economist at oecd. she's, in my opinion, the number one trade economist in the world. her work has been legendary in washington and at brandeis university. if catherine mann tells me

growth is coming down, that gets my attention. guy: we look forward to that conversation with professor mann. tom keene, "surveillance" is shortly. something else in the u.s. general motors and see it-cries that reporting they are selling more cars than anticipated. does this signal that the economy is gathering momentum after a very unpleasant winter? matt miller has more. matt: u.s. auto sales in may beat expectations across the board. absolutely crushing it with fiat and general motors posting higher numbers than expected as far as gains. ford posting a decline not as steep as expected. as far as the european automakers americans are watching closely the race between bmw and mercedes to create the biggest luxury car maker or to achieve the most

luxury car sales. the bmw inched closer to mercedes -- or cities has done better in the previous 4 months. they are ahead by 479 cars. watching sales in the u.s. of trucks. that is what boosted the segment across all brands. bmw had a 34% climb in utility vehicles. a gain for chrysler as well, making up almost 80% of sales. ford and chevy, normally doing very well with trucks, ford had a decline in the f150 segment because they cannot make them as quickly as they need to to meet supply. chevy had an increase of 11% in

the silverado. big trucks did well, not as well as midsize trucks. chevy's colorado were gainers. the midsize segment showed a 51% increase in the u.s. as gas prices remain low. hans: coming up, opec gathering. live in the unit with the energy agency's executive. stay with us on "the pulse." ♪

guy: welcome back. you are watching "the pulse." interpol issued red notices 46 former fifa members. that follows sepp blatter's resignation yesterday. mark barton is here with the latest. mark: six names we are familiar with among the 14 who were indicted by u.s. prosecutors last week. two former officials and one big name jack warner, who was the head of the body that oversees north america and central america. the other fifa official is nicolas leoz, a paraguayan national. 3 of the other 4 are marketing

executives. the other is an intermediary. the bulk of the investigation centers on soccer officials in the u.s. who allegedly were involved in bribes and kickbacks with marketing companies who then were given rights to tournaments and various other soccer tournaments. that is the center of the u.s. investigation. these names, just remember a red notice is not an arrest warrant. hans: i have never received anything close. i think i am safe. mark: nothing there to it. hans: we are joined by a fifa disciplinary committee member the former ceo of the south african football association. joining us on the phone. tell us what the significance is when we take a look at the red notices. does this advance the case or is this more of a formality? raymond: i think it is a formality in respect of the judicial process.

people are indicted, they are accused and have the opportunity to defend themselves. the only find out what came out once the final matter gets to court. or if the defendants plead guilty or there is some kind of plea bargain. guy: what was the first thought that went through your head when you heard that sepp blatter had stepped down? raymond: you do not really think about it. you are a little surprised because of the fact that he's been elected by the various federations and. through the confederation. then this happens. something must have triggered it. only he can be the one who will disclose that. everyone else will speculate for good ,bad. when somebody leaves, they focus on the bad. nobody focuses on the good you have done. nobody focuses on the future.

it's the way forward, focus on the future as long as the game does not sever. and the people are -- i do not think the majority of people care who is the head of the organization. they want to see a transparent organization. an organization where everything goes according to plan. guy: people are now talking about a major overhaul in world football as a result of his decision to step down. do you think that is what is going to take place? the fact that he has decided to go will that signal a significant change at fifa? raymond: no. what people forget is he does not make decisions by himself. or i assume he does not. what happens in a normal organization is you have a strategic plan drawn up by executives. they take it to the membership.

. the membership endorses it. the administration ensures it is properly administered. that's the way to go. the question of the world cups and the way in which the world cups are awarded. going back to 2006 and 2010 in south africa, there was a book that had to be completed. certain requirements had to be done. at that stage, the executive devoted. -- voted. when you talk about a major overhaul, there are rules and regulations. yes, the administration may be changed and people may come up with different strategies. when they talk about an overhaul it is an exaggeration. the game is bigger than any individual. it's very simple. as to how they are administered,

that is simple. that's up to the guardians of the sport to ensure it is administered equally. people say africa benefited whereas the other confederations did not -- guy: very quickly. is south africa clean? it is at the center of allegations of the 2010 world cup. jack warner is at the center. it is alleged that fifa officials and south african government officials were involved in some sort of payment that would have ended up with jack warner. in your mind is south african football observed of -- absolved of blame when it comes to bribes to the award of the 2010 world cup. raymond: i can't comment on that. as a football association you

are always responsible for what goes on in your association, whether you know it or not. in my mind south african organized the best world cup ever. when everyone said africa was not ready. guy: just a very quick question. it is being reported in germany, what we are hearing is that the german justice minister as saying the fifa decisions must be reviewed for qatar and russia. the fifa head in russia saying it will not be threatened. russia having the world cup will not be threatened. do you think those tournaments are at risk? do you think they will need to be reviewed? raymond: the association voted for something.

if you go down the path, you cannot all of a sudden turn around and change everything because it suits one or two individuals. you have to look at football globally. it has been in europe and africa. it is going to russia and the middle east. football is about development. it is not about what is beneficial for one individual. there is always a fight between europe and africa. africa may have the numbers and europe may have the money. they should be treated equally. your duty is to develop the game around the world. guy: thank you for your time. raymond hack former south african football association ceo. hans: our twitter question of the day. ryan chilcote is in vienna as opec gathers ahead of its friday meeting. you have a very important guest. what do we have? ryan: o day one of the opec

seminar. i'm joined by the executive director of the iea. maria van der hoeven thank you for joining us. i want to ask you about the demand side. one of the things we hear from opec delegates is demand is going to pick up in the second half of the year. they think, on a day when the price of oil is falling, that demand will pick up. is that what you think? ms. van der hoeven: we think demand will pick up in the fourth quarter of this year. the question will be how much. there are two things. first, the economic growth. that's where the imf produces figures. the second thing is, because of the low prices, there might be opportunistic buying by countries who are filling their stock. that would lead to a growth in the amount. the price is in dollars.

that is interesting given the present situation with the high value of the dollar. that means low prices in dollars are not always reflected in domestic currencies. ryan: russia, switzerland brazil or even euros, something we have seen. i was talking to an economist who was saying one of the things that will drive growth and demand for oil this year is the u.s., where people are buying big trucks and suvs like there's no tomorrow. do you agree? ms. van der hoeven: it is something that happened a couple years ago when prices were low. people bought a lot of big fuel consuming cars. they're doing this again. two things are different. first, the cars are more fuel-efficient. efficiency is driving costs down. ryan: so opec gets less bang for its buck? ms. van der hoeven: the other

thing is, what will it bring in the end? you do not want wasteful consumption. that is another thing i would mention. you would like to have the right price. on the other hand, we have to see that we are discouraging wasteful consumption. using a lot of petrol because it is cheap for now -- ryan": you will be paying for that later. ms. van der hoeven: it has happened before. ryan: in terms of supply, we have seen the rig count come down. i was talking to a supplier yesterday. they're telling him they intend to return to the market. if they see the price of oil go up another $5 or $10 for a 4-month period. what do you think will happen

with the shell revolution -- shalree revolution? ms. van der hoeven: there are a couple things. one is whether it is possible to return to the market. do you have the skilled people? when you slow down a rig, you have to get rid of people. how are you going to get them back? the other thing, there has been a lot of innovation already going on. that means that even with the present rigs costs might come down because of innovation. let's wait and see. until now, a lot of rigs have been closed down. ryan: in terms of iran returning to the market, the statistical arm of the u.s. department of energy has said iran is able to export sanction free could shave $5 to $15 bucks off a barrel of oil. ms. van der hoeven: in iran

lots of barrels are a floating story. if the ban would be lifted that would come to the market. how long would it take to come back to the original production? it will take a few months. i am sure whenever the ban will be lifted they will do that as soon as possible. that creates a different challenge for opec. ryan: thank you very much for your time, maria van der hoeven. executive director of the iea. part of the opening panel here at the opec seminar, which is an event that opec puts on to swap and exchange ideas with other people in the industry. maria van der hoeven's views are valuable to the market. in an hour and a half we will hear from bob dudley, ceo of bp, sharing what he thinks the market has in store. guy: looking forward to that. thank you very much indeed.

ryan chilcote joining us from opec in vienna. coming up, what you need to know. mr. tsipras in brussels, mr. draghi in frankfurt. we will see you in a moment. ♪

guy: welcome back. you are watching "the pulse," live on bloomberg tv.

. whatwe need to know for the rest of the day hans: we are interested in fifa. the german justice minister talking about reviewing the 2018 decisions. guy: the germans are looking at this. hans: is fifa cosmetically corrupt or corrupt at its core. will this be an opportunity to review qatar? russia seems like it will be to close. guy: that was our question, should qatar 2022 be reviewed? plenty of people kicking in. a few tweets coming in. we can't ignore the ecb and greece. hans: what is more important brussels or frankfurt. guy: we do not even know who is

meeting. hans: the headlines coming forth jean-claude juncker saying some work needs to be done. we do not know who, is dijsselbloem meeting with tsipras? conflicting reports. guy: talk of this ultimatum that is being issued. the meeting on monday, the ecb involved in that. the greeks are keen to portray it not as an ultimatum. hans: a pre-ultimatum. you can modify it a little bit. it does seem like the principals have the feel of an ultimatum. guy: a big payment due friday. getting a little more interesting. hans: with draghi, how are they signaling what they are going to do to the market? they gave that speech here in london. and yet they do the public announcement the next morning. interesting questions. guy: a lot happening the rest of

the day. keep it here on bloomberg. stay tuned "surveillance" is next. we will be back later. the ecb press conference, live and in full on bloomberg tv. ♪

announcer: this is "bloomberg surveillance." tom: if it is wednesday, it must be belgium. alexis tsipras and greece will be dictated terms in brussels. the euro strengthens.

it is the outlier, the big bank call on the street. ellen zentner joins us. and sepp blatter. the sport of soccer falls into some level of brendan greeley chaos. this is "bloomberg surveillance ." it is wednesday, june 3. i am tom keene. let's get right to fifa. where you really stunned that the guy resigned? brendan: is inconceivable. nobody expected that to happen at all. all i can think is that it is nudged over the edge by the sponsor. tom: he has been likened in a collegiate way to castro stalin , and others. is that fair? brendan: yes. vonnie: he is becoming an international criminal. brendan: what is true is