mark: grace meng's history as the first country to bundle imf payments since coming up. manus: a deal is far from over says that german chancellor as tsipras rejects the most recent proposal. mark: media giants vodafone and global are said to be discussing a deal that could be one of the largest ever made. manus: cut, hold, or raise. the oil price is set for the largest weekly drop since march but opec won't act to reduce the market glut as it needs in vienna today.

mark: hello. welcome to "countdown." also coming up today, turkey nday. the president's party hopes to win enough votes to amend the constitution and boost his powers. we speak to the deputy chair of the main opposition party days before the tightest election in over a decade in an exclusive interview. manus: greece has become the first country in decades to defer payment to the imf. prime minister tsipras told imf greece would bundle payments into one lump sum totaling 1.5 billion euros due later this month. it also rejected the latest creditor proposals for a deal. for more, let's bring in

vassilis in greece hans nichols in berlin, and jones hayden in brussels. what is the delay in the payments? >> greece made a political decision to escalate things. during this and game, we are in some sort of blame game. greece has always been careful pointing the fingers to creditors. it is their fault the impasse is still there. although the money and the funds were available to meet today's payment, although prime minister tsipras said on wednesday night, do not worry, when asked whether greece would meet the payments the government decided to bundle the four payments into one large sum at the end of the month.h. greece came to a harsh realization. the eurogroup agreement was

interpreted differently by the two sides. the political solution greece has been looking for was basically cooked by technocrats. although greece has made quite a few concessions on its pre-election rhetoric it seems that the creditors are very firm in what they are asking. prime minister tsipras yesterday decided to reject the proposal and he will address the parliament today in order to strengthen the coherence of his own party and address the nation in some sort to calm things down a bit. manus: i suppose that is what we want to say. let's cross to germany. merkel's message is that a deal is still far away. patients, five months of patients? hans: that is her way of saying

she is bracing for the long game. long might mean end of july, but she thinks she can withhold her side a little bit and make sure they get a deal that is acceptable to the greek public. who knows if they will? that is what merkel is bracing for. for her, it is a mixture of mathematics and chemistry. look at this quote she gave last night. she did a bunch of interviews leading up to the g-7 summit. she said, we are showing goodwill from our side, but goodwill alone isn't enough. at the end, the numbers have to add up. one factor bolstering merkel's position, a lot of economists especially in her own country, think that it is manageable to have a greek exit. whenever you hear german central banker talk about an exit, a greek exit being manageable, the greeks should be very concerned. >> i am looking at the exposure

of the banking system towards greece. if i look at the exposure of german banks, we have an exposure of 2.4 billion euros left of all german banks towards greece. in terms of a financial contagion, i'm not worried very much. the word i would like to use with regards to this is this situation shouldn't come to a grexit. i don't want to speculate about that. hans: the more his view in germany, the idea that you can manage a greek exit becomes the default for germany, that is bad for greece. it is also an indication as to how much there is a certain faction within merkel's party and among economists in germany

that think europe can withstand this and that a grexit would not be the end of the world for the eurozone recovery. manus: thanks for that. let's crossed the jones hayden in brussels. here we are again. tsipras reemphasizing that the greek proposal is the one he wants to push across the line. jones: right. it seems like he has really upped the ante with the move with the imf. from the brussels perspective what the negotiators were still trying to come to a consensus on , the programs that have been put forward -- they made a little progress but they are still far apart. the negotiators in brussels are still emphasizing the pension reform and the labor market reform. these are two things the greeks

have called red lines and don't want to talk about. manus: ok, let's draw a line on it for there. vassilis: in greece, hans nichols in berlin, jones hayden in brussels. mark: the 12 nations that make up opec are expected to maintain output to focus on market share. let's get over to ryan chilcote in the austrian capital. good morning. it was the lay of the land so far today. ryan: it is a beautiful day here in vienna. my guess is he is going to speed walk to the opec meeting with a broad grin on his face. saudi arabia has been pumping oil like there's no tomorrow. last month, they pumped more oil than they have in any month in the last 30 years.

they have been compelling everyone else to go with their policy of no cuts, focus on market share, yet rid of high-cost producers. his closest friend, the faction he leads, they are the gulf countries qatar kuwait, united arab emirates. so far, they are on board with him. i caught up with the kuwaiti oil minister yesterday, who said, so far, so good. have a listen. >> we have to at least evaluate and review the past period of time from november until now. our past decision what did we gain out of it? ryan: you think it was good? >> of course. this is the main important thing going to a decision either to increase, to sustain, or to decrease. ryan: at your average opec

meeting, you would have countries like iran and iraq making noise about this idea of flooding the market with oil, concern about the price. wti below $60 a barrel would definitely get them very anxious. but those countries are pumping as well and want to pump even more. iran is hoping the sanctions will be removed. they want to raise their exports by a million barrels a day by the end of the year. the iraqis despite all the horrific pictures of the advance of the islamic state is pumping more oil than they have in any point in the recent past. so they are not going to provide that resistance. you will hear complaints about the price, but you won't hear any calls for a supply cut. lots of oil yet to come from the cartels. mark: where do american shale

producers fit into this? ryan: they are just an annoyance, aren't they, mark? the whole idea initially was this idea of flooding the market to get rid of them. the idea now is to tolerate them. if they are going to palm, we might as well pump with them. not just because i'm a proud american, but because i like people to be proven right, i took great joy in watching the ceo of philips return to the opec seminar yesterday three years after he'd been there. three years ago, he warned the opec delegates they need to pay attention to the shale revolution. they basically laughed at him. look what happened. u.s. production went from 6.5 million barrels a day to 10 million barrels a day. no one was dismissing him yesterday. he said the shale revolution is just getting started. >> we are in the second inning

of a nine-inning game. we are figuring out how to optimally fracture and stimulate the reservoir, how to get the optimum flow coming through the reservoir. ryan: of course, the price of oil has been going down this week. wti below $60. yesterday we saw a big move in the price of oil. is that a problem? ryan lance says, even in the $40 range, you can make a 10% profit on a shale field if you get the sweet spot in it. so there will be more shale oil. the opec countries know that. that is why they don't want to cut. there is no guarantee that even if they were to cut output, they would see a meaningful rise in prices. one thing for sure what happened. they would lose market share to the american producers. mark: great job, ryan chilcote in vienna today. manus: vodafone and liberty

global are discussing a range of potential transactions including outright merger. that is according to people familiar with the matter. let's bring in nejra cehic. we seem to have shifted gears. it sounds almost as if there are more substantive discussions. nejra: this could be the biggest deal ever based on enterprise value. at the moment, the talks are informal. they are at a very early stage. as you say, we have been hearing about this potential deal for a while. until now, the speculation has been about vodafone buying liberty for the most part. a couple weeks ago, you had liberty global chairman john malone saying a tie up with vodafone would be a great fit for his cable empire in western europe. people familiar are saying the options include outright merger,

discussions about a merger of the companies' european businesses, or a series of asset swaps. mark: could there be some opposition to the deal from investors? nejra: this is an interesting one. since malone made that comment, vodafone shares have risen to a 14-year high. they have come off a bit now, but we saw that rise. bonds, we have seen sterling losing 2% since then. and the price of credit default swaps also rising. we are seeing some concern from bondholders, the reason being that it could endanger vodafone's investment grade credit rating especially if it is part funded by debt. just recently s&p was the final out of the three big ratings companies to downgrade vodafone. there were other issues as well.

malone has pointed to the philosophical differences between the two companies. liberty is high leverage, whereas vodafone has this more said eight commitment -- more sedate commitment. ultimately, we have seen this wave of consolidation in the telecoms industry. all the companies trying to protect their profit and provide quad play for their customers tv, broadband, wireless, phone. so, despite the opposition and the risk, it could be that there's too much to play for. manus: let's see what develops on that story. stay with us on "countdown." we have more on that story. we will bring you an exclusive interview live from the world economic forum in cape town with anna edwards. mark: u.s. jobs data for may is due today. payrolls expected to rise two

hundred 26,000 according to a bloomberg survey. employers added jobs in april. the jobs number, 1:30 london time. goldman sachs is in talks to pay $2 billion to $3 billion to settle a case in the sale of swiss mortgage bonds. that is according to a person with knowledge of the situation. the investment bank could reach a deal with the u.s. justice department within weeks. stock prices have managed to spook bill gross. he says although the selloff hasn't been enough to call a bear market, it "scares the hell out of me." heading for the biggest quarterly loss since 2010. china breached the office of u.s. management personal computers, stealing the records

of as many as 4 million employees. the attack is one of the largest ever breaches of government personnel data. join us on twitter. manus is forever @manuscranny and i am forever @markbartontv. manus: coming up greece tells the imf it will pay later, citing a rolled last used by zambia in the 1980's. what are the ramifications? ♪

mark: the shanghai composite index climbed about 5000 points for the first time in seven years overnight. let's get more with david ingles in hong kong. what can you tell us? it has erased those gains now? david: difficult day. i will get you a chart of that in just a moment. take a look at what is happening across the region. fifth day of the kleins for the regional benchmark. small daily losses taking us back to daily levels of april. the markets to refer to day shanghai composite up now 0.6%.

we are just 19 minutes past 1:00 p.m. in hong kong. that is a two-day chart. at this time yesterday, we dropped 5% and ended the day higher 0.8%. today, the index opened up you had this 100 point run. it has since come down. it he raced those gains and we are now back above water about 0.5%. 4970 eight is the level. at these levels, valuations are fairly stretched. this is an index of about a thousand stocks. the thing you have to consider when you look at shanghai, the region doesn't move in step with the rest of asia. it is how the foreign money plays in. there is a big portion of retail

investors. a lot of these are new investors , newbies when it comes to trading. your neighbor's advice would have much more weight than research which looks fundamental. at this point, it is fairly stretched. we seem to be hitting this glass ceiling. you. mark: david, thanks a lot. manus: greece has become the first country to defer payment to the international monetary fund since the 1980's. it is a game of brinkmanship with creditors. greece has asked that four payments due in june are bundled together, something last done by zambia. let's get a take on this. the u.k. managing director of charles schwab. this is not good by anybody's measure.

this hasn't been asked for since the 1980's. are we at the death brink for greece? >> it doesn't sound that way from the comments we heard from angela merkel. she wants to bring greece to the table. as we saw earlier, we were talking about the impact on german banks. he believes the impact will be mitigated. the banks are much better capitalized then when we started on this journey. french banks have a lot of greek debt. we've also got qe in place which can sub up some of the impact. economies are in a much better place. mark: is this a massive risk, a massive gameplay by tsipras, a game of brinksmanship? does this increase or lessen the chances of a deal between greece and its creditors in coming days and weeks? >> you are asking me to predict

something from a political standpoint, which is impossible. the greek economy makes 2% of eurozone gdp. people are still interested in joining the union. if greece does leave, maybe the loss could be mitigated and it is not as big as the european economy thanks. manus: can you have the ecb get together and go, should we give them a few euros? no. should we keep the banking system alive? we are really in a state now that we haven't seen since the 1980's. if there was a moment in time to sort of draw the horses in banking, it might well be this weekend. or is that me being too much? >> hard to say. i'm not a greek banking expert. some of the demands on greece have been loosened. lower and lower percentages are going out. it seems like they are almost

asking the impossible. mark: it is not just about greece today. it is about the u.s. jobs report. the average for the year is just below 200,000. the average for last year was over 260,000. not as good, but still around 200,000. will today's figure be enough for the feds to raise interest rates this year? >> from a market standpoint, if you look at the number we saw last month, it came exactly in line with expectations. this month, we want the same thing. from the fed standpoint, we are concerned about the 226 number. if you look at jobless claims from last month, they were pretty good. there may be a chance we get a stronger number. what is also important to point out is that reports are coming out that nonfarm payrolls, average hourly earnings, and

also participation they are all very important to watch. manus: you still like the dollar. would you be as bullish on the dollar if that data has an impact? i just want to get your take on bill gross. he is worried about bond markets. he says he is "scared as hell" of the markets. are you scared as hell of the bond markets? >> we wouldn't say something like that. we speak to individual clients and we suggest that assets and portfolios are constructed for a longer-term perspective. i have been speaking to people on the bond desks and one reason for volatility being cited is lack of volume. there seems to be this universal agreement that this is the reason we are seeing such high volatility. mark: do you still say mobile

markets -- why is that? >> to get able market to turn into a bear market, you have to have a recession on the horizon. we had q1 gdp weaker than expectations. gdp is starting to pull back again. we had autos strong. the services sector was pretty strong. we don't have a recession on the horizon. we don't think the bull market is going to turn into a bear market. manus: thank you very much. mark: join the conversation on twitter. press the button. check out that photo. manus: it even whistles back at you. i may have a whole new career ahead of me. mark: there we are. manus: we are there. goodwill alone, is it enough?

and, the numbers have got to add up. those are the words of chancellor angela merkel. stay with us. there's much more to discuss. ♪

manus: welcome back to "countdown." let's check in on the dollar as we go through the biggest report on the economic calendar, the jobs report. can we remain above 226,000? the dollar was rallying through the close, coming flat, up 18 at the moment. the greeks are deferring their payment. on markets, bond markets are

seeing rieses, but there was an article on bloomberg asking why everyone was in a panic. you haven't seen nothing yet. that dollar yields are trading higher, a quid pro quo on the dollar. the dollar is a little bit higher but the real impact is yet to be seen on the euro. no dramatic response -- i think this is what came from our discussion -- greece will be contained, those are the voices from the ecb, and the debate from the euro -- do you believe that the deflation spiral is over? inflation is the new spectra. or do you believe that greece will trump the inflation story and bring the euro lower? let me show you the past five days trading session.

you can see that we are up over 2% in the past five sessions. with that in mind, they have raised their year and dollar targets to 1056 and 111, which is up. they say the market is unrealistically pessimistic. they have moved from a call of $.93 by the end of the year, to parity. they are all beginning to make a u-turn. if greece is a contain situation, what will happen in the greek parliament? no one really knows what might happen if greece was to exit. mark: the top stories on bloomberg this hour -- the shanghai composition drives about 5000 points for the first time in seven years overnight.

although it is now raising those games in banking and technology stocks, the index dropped more than 5% yesterday before rallying to end the day over the last 10 days, bigger than all of these indices tracked by bloomberg. the uk's biggest supermarket chain is considering a sale of its south korean business that could fetch more than $5 billion, according to people with knowledge of the matter. the company is weighing options, including sale of its ipo. leaders from g7 will meet in germany on sunday. the group will discuss russia's backing of ukraine separatists. the spread of islamic states and iran's nuclear program. the summit runs until late monday. manus: angela merkel has said that it greek aid deal is still far off.

she wants to work toward an agreement. she also said that goodwill alone isn't enough and the numbers have got to add up. joining us is the senior vice president of teneo intelligence. are we as far apart as ever? >> no, i wouldn't say that. over the past couple days, prices have been moving. people have been making concessions on key issues. there is a positive indication, but i think it is clear that we still need more time to get to a deal. mark: does he think he can get a deal through parliament by the time liquidity is released or is he desperate, clinging to the u.s. to put pressure on eurozone officials? which one is he? >> it is difficult to separate

the two. the risk of having to go to a referendum before early election is something to keep in mind. he has been trying to divide creditors. it is clear that there are slightly differences, that i think it's clear that lenders are on the same page. it is certainly a dimension he needs to keep an i on. manus: you maintain that merkel wants a one-stop shop. she wants one ground bargain. >> for the next couple months. i think we have to be realistic. it is certainly true that it wouldn't help greece and her credibility in germany if she returned every other week. in the end, there is a fair amount of skepticism in the german public and you want to

make sure that you don't bother the mps every other week. mark: will he get a conclusion then? the new deadline has to be june 30. i'm only saying that because they have got to pay this -- the second bailout has to be wrapped up. is that the ultimate deadline? i know we have said it every day the last four months. [laughter] >> for now, the extension will be rallying and you want to make sure you have a deal. manus: i don't have an opinion. that is why we bring in mines like yo -- minds like yours. what will the g7 do? >> i think germans aren't

prepared to move past what they have been paying so far. we have a balanced budget, we could pay back our debt but we aren't doing that we are putting something into yo-- mark: is europe ready for a greek exit? much readier than it was a number of years ago. >> you don't have that immediate contingent, that over the long run, i wouldn't be too sure. there is no political will for that. manus: this is where i want someone to correct me. not one person has any concept of the actual impact of what this might have on the world. they didn't know what would happen when they let him go under. the british got their act together. there is not one person who has

really -- they keep talking about 2% of gdp, that is hogwash. >> totally. a few months down the line, you have negative data, investors starting to ask questions. nobody knows and nobody is prepared to take the risk. manus: the other thing is this -- everybody says they are better off leaving. let me get to the point. they have all those potentials to recover. could greece recover, capably, to decent growth, staying within the euro zone and how would they do that? >> do they have the potential to recover? from my perspective, especially if you look at the politics -- i would be very concerned for stability, social stability, political stability in the streets if we would face a greek exit.

it is a massive gamble. these guys have a mandate to push back against austerity, but it is also clear that they do not have the mandate to take the country out of your. mark: what would happen if the referendum took place? >> that depends on the deal he gets. if you look at the opinion polls, it is clear that greece wants to remain. i think he can secure something based on language something he can sell politically. manus: i cantilever the title of the company -- 60% of series a supporters -- i am not bothered about holding on to it. this is a party that has gone against -- they don't care. >> again, take social and

political stability in the entire country into account. i don't know that at bet -- manus: you won't be allowed to leave. m when do we get a deal? >> in time for the 30th. [laughter] manus: you will have to be braver to come back. great to have you with us. this senior vice president at teneo. mark: join the conversation on twitter. we are always there. manus: stay tuned. after the break we will bring you something you will want to stay around for. an interview with a triathlete.

♪

mark: the current world triathlon champion competed in a record 10th straight win, as she continues to dominate the triathlon series. i caught up with her this week as she revealed her secrets of a

former life as an accountant, on this week's "business of sport." the one your 10th straight world triathlon series this weekend. i gather you have the flu. how does one win in london when they have the flu? [laughter] >> i have a cold and was feeling under the weather, but i know that on race day, the likelihood of me feeling 100% is very slim. my competitors don't show up 100% every time we race and we have to compete under tough conditions. mark: you were in the rankings -- that determines the rankings across the world triathlon series. how does one stay ahead of the pack? >> good question. i think i am learning as i go executing the best i can. i can't control with the other people do but i am giving it my all.

mark: do you have a preferred discipline of those three or is it a day by day basis? >> i like running -- there's not a lot that can go wrong in that point, you were just running. mark: you had a mechanical error in the olympics, didn't you? was that a huge disappointment? >> i think it was a turning point in my career. i think it was good for my career. i had a flat tire and i finished, and it made me motivated. mark: rio is a year or so away -- will you be going? >> i have aspired to win gold in rio. i need to qualify first and there will be an opportunity later to qualify. mark: tell me about your former life. you were an accountant, then you saw the light. [laughter] you had been a sports woman for

many years before the. from accountancy to triathlon -- explain through the process. >> i was really fortunate -- i was working and i started doing triathlon on the side. i was working 80 hour weeks, so i started working part-time and i had to do success in triathlon -- i took a leave of absence. mmark: why wouldn't anyone want to stay in accountant? >> i miss it sometimes! i do miss it. i miss the routine. i like crunching numbers sometimes. mark: are there any skills that are transferable? >> for sure. hard work, dedication, the hours, having that focus. learning not only about a lot of things, but a lot of things in the sport. mark: your sponsors -- with

sponsorship, with the winning, you had to win. you have enough to keep you going. but it is still difficult to survive, with or without sponsorship, winter without the prize money. >> if you are not in the top three, it is hard to survive in the triathlon circuit. i have a great agent and some awesome sponsors, who allow me to do this, and i am lucky. mark: what is your criteria when it comes to deciding on sponsors, deciding whether you should be associated with them? i looked at your website -- there are partners and there are sponsors -- tell us the difference. what is your criteria? >> first, i need to believe in the product. that is the first way to make a good connection, to believe in

the product. i support them, they support me and i'm fortunate with all the people i involved with i believe in 100%. mark: daily routine -- give us an idea. what time do you give up? how much training do you do. ? >> i'd say i have a lazy start. normally the first session that i have to be somewhere is 10:30. but before that i do a run in the morning, 30-60 minutes, that group from 10:32 new. -- 10:30 to noon. mark: do you love it? >> i do. mark: every day? someday you just -- >> there are definitely days like that. you wake up and it could be raining, gloomy, you are tired,

can't walk is your legs are sore. mark: what's next? you are still very young. >> thank you. i am 29 -- i feel old. mark: what is the expiration date of a serious world champion triathlete? since london, i have just been focusing on getting to rio. i haven't thought much past that. i have a husband, so i don't know if i'd get back into triathlon. have a family maybe. the possibilities are endless. mark: one thing at a time. manus: coming up we will be looking at our favorite stories from bloomberg, including cycling in london. go to mark barton's twitter account and mine. it was a nostalgic day today.

this is the last time you get the terrible three together. mark: join the conversation on twitter. manus: it's important. ♪

manus: top stories at this hour

-- heading to the polls on sunday in what is the tightest election in more than a decade. it is set to decide whether the country moves toward the presidential side of government. they are seeking to win enough votes to amend the constitution. australian businessman alan bond has died at the age of 77. mr. bond was the nation's largest brewer. he also set up the first privately funded university. according to the australian broadcasting corporation, he died following publications from heart surgery. the chinese ship which capsized on the yangtze river has been fully righted. the ship was carrying more than 450 passengers. the search for 330 people continues, according to the associated press.

the uk's biggest supermarket chain is considering a sale of its south korean business which could fetch more than $5 billion. the company is weighing options including the sale or an ipo. tesco is working with advisers. leaders from the g7 industrialized nations will meet in germany on sunday. the group will discuss russia backing ukraine separatists, the threat of islamic states and negotiations on iran's nuclear program. the summit runs to late monday afternoon. the indian unit is amid escalating concerns over lead in the product. it was up 12% in the last two trading sessions. authorities are conducting tests

but the company denies the accusation that its products are unsafe. mark: shall we talk about our picks from the world of digital? i've chosen one for you. it's an island story. it is on the front and back page of the newspaper today. in 2009, ireland and rams played a world cup playoff to reach the world cup finals in south africa. ireland was 16 minutes away from a penalty shoot out for a place in the finals before extra time equalizer by france which insured they went through. an equalizer was caused -- there was major uproar that it shouldn't have been allowed. the football association of ireland said they accepted a 5 million euros settlement from fifa to avoid a costly and

protracted legal battle over that match. the settlement was reached following strong legal advice given to the association regarding the case against fifa. settlement -- it was a legitimate settlement have demonstrated by constituent criticism. the payment was to help finance a new stadium in dublin. it's an amazing addition to the stories that have been released in the last week, the net? -- isn't it? what have you got? manus: my face says it all -- let's hope all $5 million was used on every brick. london cyclists' deaths in serious injuries fall.

i have seen people driving around trafalgar square but things are getting better on the roads, according to the mayor. things are on the up. mark: we continue in a couple minutes. ♪

mark: no payments, no deal. manus: angela merkel the wait for a deal is far from over as sippers rejects -- as cyprus rejects the most recent proposal. mark: vodafone is discussing a deal that could be one of the largest ever made. manus: the oil price is set for the longest weekly drop since march, amid speculation opec will not act to reduce the market a lot as it meets in vienna today. -- that opec will not reduce the

market glut is it meets in vienna today. mark: hello. welcome to "countdown." i'm mark barton. a strong set of numbers for the month of april, an increase of 1.4%. the survey by economist projected an increase of .6% so i much bigger increase than expected. the month of march has also been revised higher, 1.1%. year on year, that equates to a gain of .4%. the expectation of the economists was for a decline of .6%. so the data from germany as strong, the eurozone's biggest economy, a sign the economy has overcome the soft patch in the first quarter. and the bundesbank had said the

economy would pick up. give us the numbers. manus: the bond markets in germany, yields have been rising still about the 1% level. these are futures, where the real liquidity is. that is the yield. that is at the bottom, .85%. these are the features down 15 ticks, not a huge move in terms of yield. bill gross talking about global bond markets, basically saying that you have seen very little yet in terms of the discussion of liquidity. i read a tweet this morning the said why are you clucking about the treasury markets? u.s. treasury bonds are falling, yields rising. these are the long bonds for september. a look at the u.s. treasuries.

september, u.s. government bonds trading .15101. mark: i have some greek government wants. interesting, the yields are falling despite word that greece will handle through the end of the month. the 10 year yield is actually down 13 basis points. that could surprise many. the two-year yield is down 17 basis points. the two-year yield is higher than the 10 year yield come something that does not happen very often. manus: you like an inverted yield. mark: it means that investors are worried about near-term debt. the 10-year yield declining after the greek news. manus: let's check on the bond markets, more movement in that. it is ironic, the euro is hardly moving on the back of this.

carsten nickel said they may get a deal. mark: june 30. manus: i don't buy this deadline malarkey. let's moving. are you going or shall i? mark: greece is becoming the first country in decades to defer payment to the imf in a significant escalation of brinkmanship with creditors, telling the imf greece would bundle payments into one lump sum totaling 1.5 billion euros this month, rejecting the latest credit proposal for a deal. for more, let's bring in caroline, hans nichols in berlin. what is the significance of this delay in the imf payment? >> greece decided to raise the stakes yesterday turning the endgame into a blame game.

the impasse in the negotiation talks is still there. although the promises to meet the imf payment today, the government decided to bundle the payment into one lump sum at the end of the month, making sure they have enough money to make the wages and pensions at the end of june. the worrying thing is the prime minister said do not worry when he was asked about the imf payment wednesday night. the greek government basically came to this harsh realization that what was agreed on february 20 was actually interpreted differently by the two sides. although the great government has made a few concessions, asking for political solutions to the problem, the top leaders of the imf we had a series of lawmakers saying they will not

go even for the greek proposal, let alone the one by the creditors. the prime minister decided to reject it whatsoever, and the greek parliament today trying to increase the adherence of his own party and the nation to calm things down. mark: in germany, hans, angela merkel rebuffing the claim from yesterday that a deal is insight? hans: in some ways, markel is paying for time. the bond market could be interpreted as giving negotiations more space, more breathing room to play out. that is my only explanation for what is happening. it seems as though merkel is prepared to play hardball. she once a deal, but she also want a deal that makes sense mathematically. the old phd in chemistry and physics, she wants the chemistry to work. take a look at this quote a

bunch of interviews ahead of the g-7 summit in southern germany she said "we are showing goodwill from our side, but goodwill alone is not enough. at the end, the numbers have to add up." that is the practical side to angela merkel. one factor behind the public positioning is there is a faction both within her own party and also within the economic community in germany and that is annexed it from greece from the eurozone would be manageable. anytime a central banker, this time it was the number two at the bundesbank, anytime that he says an exit would be manageable, the greeks should be very concerned. >> i am looking at the exposure of the banking system towards greece. if i look at the exposure of german banks we haven't exposure of 2.4 billion euros

left, of all german banks towards greece. in terms of a financial contagion and that's the only thing i'm looking at, the word i would like to use with regards to this is the situation, should it come to an exit -- i do want to speculate about that -- would be manageable. hans: that is one of the reasons the german seem ready to play the long game. the bank exposures, 2.4 billion euros, not a lot. the german state with still be on the hook and german taxpayers would still be on the hook for many multiples of that if grace -- if greece did not pay back their debt. in terms of a financial crisis they are not concerned, and that is influencing a lot of their negotiations. mark: jones hayden in brussels what has been the reaction?

what is next for the european negotiations? jones: i think the negotiators in brussels see this as a negotiating tactic on the part of greece. in terms of the substance, not much has changed. have these proposals, one from greece, one from the creditors floating this week. there was a meeting in brussels early thursday about this. they were still far apart. they will have to bring those together somehow. negotiators fear are expecting a counter proposal from greece to come monday. that is what we are waiting for. meantime, they are watching very closely in the parliament tonight, to see what he says and also to see the reaction and debate over this whole situation within the greek parliament. mark: thank you all for joining us this morning on this significant day for greece and its creditors.

manus: the 12 nations that make up opec meet in vienna today to discuss production quotas. expected to maintain output to focus on market share. let's check with ryan chilcote who has been standing by in the austrian capital. give us a gauge is this intractable? have you heard any ray of light in terms of reduction? ryan: my sense is the saudi's will's been walk over to the meeting and get what he wants. that is a monument right there to beethoven. you just imagine the saudi oil minister listening to the film 70 -- the fifth symphony as he goes and because he will be triumphant. he implemented the strategy six months ago and forced it upon the rest of the cartel whereby it is not the price they are after, it is market share.

within his own faction, if not throughout the cartel, he has the support he needs. not because they are concerned about supply picture right now. they were a bit concerned about that, but because amongst everything else going on, demand is picking up. they find that very encouraging. have a listen to my conversation with the oil minister of the uae. >> the world economic demand recovery, and that recovery and the growth of the economies, the different economies around the world, will drive demand and that demand will always be met by us and the rest of the world. it is not a competition. it is, rather, a logical contribution to supply, to supply the demand in the world. ryan: you will hear the

openhawks, some of the countries complaining they are over supplying the market, along with shell producers. what you probably will not hear is anybody calling for a cut. everybody is expected to maintain production, if not raise the ceiling, although that is a minority view. the reason is, as much as they do not like this idea of oversupply and the market, even the hawks intend to pump like there is no tomorrow. the iraqis are increasing production, despite everything we hear about the islamic state and their march across iraq still far away from the oil fields. then you have iran waiting for the sanctions to come to an end and return to the market. they will not have the resistance that could cause any real trouble today for the saudis. what we will get from this meeting is more oil, like we have seen the last couple months. manus: where do shell producers fit into this, ryan -- where do shale producers fit in?

ryan: shale producers are an annoyance for opec. shale producers cut their costs and prove they could stay in the game, even at $58 per barrel. the big a moment yesterday and not just because i'm a patriotic american, was when the ceo of conoco phillips spoke to the opec delegates. he was at the meeting three years ago, warning them all of the shale revolution, telling them they had to pay attention. they'll must left him out of the room. they were paying attention yesterday, and he said the shale revolution is just getting started. >> we are in the second inning of a nine inning game. we are still figuring out how to actively fracture and stimulate the reservoir and get the octomom flow through the reservoir. we still have a lot of efficiency gains i think the industry will make. ryan: the internal question, how low will be shale producers go?

ryan lance said at $40 per barrel, in that range, they can still find shale fields in the united states to make a 10% profit. that means shale will continue. that is not all the producers. that is picking the best of the acreage. nonetheless, these shale producers will survive. opec understands that, so there is no point in cutting because they would just lose market share, so here comes the oil. manus: thank you, ryan. ryan chilcote in vienna. breaking news from lloyds, the u.k. retail bank. lloyds had a payment protection insurance claim against theml. loyds has settled this. this dates back to march, 2012 to may 2013.

they have paid a settlement of 117 million pounds. lloyds will cut about 13 million pounds from the bonus pool. lloyds apologized to its affected customers. the handling process lead to failure to provide fair outcome for a significant number of customers. the fca has not found lloyds acted deliberately it said. they fully cooperated with the fca adjusting up payment -- adjusting payments to the executive committee and operations will ultimately be responsible for the oversight. unvested bonuses totaling 2.5 6 million pounds will be forfeited and lloyds will reduce the 2015 bonus pool by 30 million pounds. that is the breaking news on lloyds bank.

ok let's -- take a quick break. of course, it is the elections this weekend in turkey. mr. erred when takes his party to the polls. we will be joined, the deputy leader of the opposition party. that is coming up next. the deputy leader for the chp party, joining me next. ♪

manus: sunday, the people of turkey the world's most easterly member of nato, go to the polls. president erdogan is campaigning to reform the constitution, but more power in the office -- put more per power in the office of

president. we are joined by the deputy chair in charge of economic policy of turkey's main opposition the people's party. thank you so much for joining us on bloomberg. as you go into the polls sunday it is a tough one. unemployment at a five high, currency at a record low. this is about the economy, isn't it? >> clearly so. thank you very much for the invitation and opportunity. this is a tough year for turkey, but it has been so over the past couple years. we are basically telling the public turkey has amazing potential which is unfortunately unrealized because of poor management. with better management with the best institutional structure turkey could excel and become the stellar power. this is very much about the economy. manus: you obviously are

battling hard against erdogan to win on the ground. what is the biggest mistake? has he taken his eye off the ball going for this power for president rather than relief for the people? guest: we should first remind our audience what he is doing is unconstitutional. constitutionally, the power of the president, he cannot be chairing a political party. as you stated, rightfully, the battle is actually against erdogan, where it should have been across political parties. we are actually battling a president, with all the amenities of a presidency used against all possible opposition parties and all p possible opposition in the country for stop this is an unconstitutional election. manus: the election is not unconstitutional.

the election is a democratic election. guest: true. manus: we need to be fair in that respect. guest: true. it is the run-up to the election. manus: indeed. let's talk about what you are promising your supporters. you are prepared to raise the minimum wage 15% perhaps more diesel subsidies. these are all very generous promises, enticements to an electorate under a great deal of pressure. are these mythical promises you are making? guest: no they are extremely realistic, actually. politics is about making choices where you spend your fiscal discipline. we have lost the three pillars

of the economy. we do not have a financial stability program, a macroeconomic stability framework. this is central bank independence, where we speak about supervisory and agencies real fiscal discipline rather than an aggregate number. what we are saying is we will spend this. we will not change the discipline structure, but we will spend it differently. we are not going to spend on jets we are rather going to forgo taxes that are paid on minimum wages. the minimum wage raise comes from the government for going partially some income generated through taxation of minimum wages. the rest could be funded through sharing with the private sector. the private sector has actually opened up there in years and are ready to do so because increases in minimum wages would increase productivity. that would trigger what is much needed in turkey, a more

long-term structural reform agenda back and start with steps that are very much demand-driven economic policy framework but they are initial steps towards increases of productivity in turkey. manus: you quite rightly talk about the need for discipline. one of the big issues is around the central bank. again, erdogan perhaps being more involved in the interest rate decision. would you support the plans to change the central bank and make it more fed-lilke, as in independent and at arm's-length. would you be in support of that? guest: jurisdictional he and turkey, the law defines the central bank as independent and the tools. where the intervention has been going on the past couple months has been the intervention to the tool options the central bank is using full stop what we should do is ever month the law that is there. -- what we are doing is

implementing the law that is there. what we need is a ruling party that can actually stand by the law and say, really, we are going to let you do your jobs. with the ruling party should do, and what we promise to do, is we will be setting targets for the country macro economically, we will set a target, and we will allow the central bank to do their duty and have the freedom of choosing the polls -- choosing the tools for achieving that target, which is already in the legal structure. manus: and the economy has restarted, so let's go. all. what is the biggest vulnerability to the economy? let's start a business monday. if you have a mandate from the people and you are in power the number one priority for the economy, what would that be? guest: if you look at all the macroeconomic numbers, there are signals all vulnerability. we know that we are not growing

as fast as we could. we are growing very much below the potential. we have a current account deficit, very high unemployment levels 3.2 million people officially unemployed, which is 11% unemployment. we have neither employment or training youth that is 37% of the population. we have macroeconomic problems that can only be solved structurally and in the medium and long-term framework. what we have in the first 100-day plan is first we have a clean political act that goes through the parliament. the first 100 days we will have a final account commission that is established, which will bring back accountability into the fiscal framework of turkey. we have lost that. we don't have all the things properly done on fiscal accounts. even though at the macroeconomic level we know fiscal discipline we don't know where the money is spent. we propose a final account act commission in the first 100 days

which will bring fiscal discipline. these are structural reforms initial steps for the long-term framework. manus: we wish you well as you go to the polls this weekend. let's see what monday morning brings to us. selin, the deputy chairman for the people's party in turkey. mark: greece deferring its payment to the imf today. no sign of a deal yet for stop joining us from brussels is maria, a greek politician and a member of the european parliament for new democracy. good morning and think you for joining us today. maria: good morning from brussels. mark: what is greece up to delaying its payment to the imf until the end of the month when will pay the entire 1.6 billion euros that it owes the imf? what is greece up to? is this a game of brinkman ship? maria: greece is a rich country

but greece, as we all can understand, is now after midnight in terms of a proposal. if they decide not to go over bonds next month, the will be no cuts. the government is obliged to pay . there is no mandate from the eurozone, there is no mandate from the courts. there is only one mandate the compromise with the creditors. mark: are you saying this is the first step at will lead to a greek default? is that what you are saying? maria: i'm saying the government has no mandate. they have to achieve, conclude a

copper mice yesterday, as soon as possible. -- they have to conclude a compromise yesterday, as soon as possible. the question now -- [inaudible] manus: maria, good morning. we expect him to speak to the parliament and the nation this evening. what message does he need to deliver to take greece forward in these negotiations? maria: i think we stop playing games with the possible elections. there is no need for no election. they will recognize this country -- manus: it is not elections the world is worried about.

certainly there is merit with going with a referendum, whatever he is offered by the creditors come if he needs to have a referendum, put it to the vote. that is not a vote, that is a referendum for the will of the greek people to accept not dropping out of the euro. maria: now he is playing with elections. this is my opinion. i think his government is playing with elections. they would like to remain on this because there is no way out. if it is not possible to achieve an acceptable compromise with the creditors, in the greek parliament this is the easier thing. he is playing with the possibility of snap elections. mark: maria, what hope do we

have for a possible resolution to this by june 30? that is the deadline to pay the imf, that is the deadline because that is the end of the second greek bailout. what hope to your realistically have foreign agreement between greece and its creditors by then and what sort of agreement would we be looking at, what would it look like? maria: i hope that we will conclude an agreement with the greek people, first of all, getting back, but it is not easy for greece. [inaudible] i think that is the issue.

the tolerance of the greek people has not increased. mark: will greece stay in the eurozone or not? maria: yes, greece is determined, the greek people are determined to stay in the eurozone. i will like to say two words regarding my party because the main party is in the government. i would like to say that new democracy are obliged to sacrifice for the common currency. we have no option to say no compromise. we need a compromise, we want a compromise, and we have to go on. mark: murray, thank you for joining us on "countdown." thank you for taking the time to chat with us, maria spyraki of the greek new democracy party for stop some of the other

stories we are following -- the shanghai composite climbing above 5000 points for the first time in seven years, although it is now erasing those gains as banking and technology stocks decline. the index dropped 5% yesterday before rallying to end the day. bigger than the other indices tracked by bloomberg worldwide. the u.k.'s biggest supermarket chain is considering a sale of its south korean business. he could fetch more than $5 billion according to people with knowledge of the matter. the company is weighing options including a sale or ipo. they are working with advisers including hsbc. leaders from the g7 will meet in the bavarian alps sunday. they will discuss russia's backing of ukraine separatists the spread of the islamic state, and negotiations on iran's nuclear program. the summit runs into late monday afternoon. manus: more consolidation of

foot in the telecom sector. liberty global discussing a range of potential transactions from outright merger to strategic knowledge is -- to teach it alliances. following the story, what is the progress? guest: this is a bloomberg scoop. we heard that vodafone and liberty have a lot of options one of which is an outright merger, a merger possibly of the company's european businesses or a series of asset swaps. we have been talking about this for a while, speculation about a deal. until now, much of the speculation has been about vodafone buying liberty. that has changed slightly now according to people familiar. i have to point out talks at the moment are informal, a very early stage. we have not had statement from either vodafone or liberty. if this goes ahead, this merger would basically be one of the

largest deals ever. mark: and investors, how are they going to respond to the possibilities of such a big deal? reporter: judging by the vodafone share price, equity investors are on board. actually where we are seeing concern is among bondholders. that is because if vodafone bought liberty, it would probably be part funded by debt, could endanger it sink investment-great -- it could endanger its investment grade rating. they have are to been downgraded by the three big ratings agencies. another potential stumbling block is management issues subtle differences between the company. liberty is high leverage, rapid growth strategy. vodafone has a commitment to dividends and investment-grade ratings. they are under pressure because there has been a lot of consolidation in the telecom industry of late. a lot of these companies facing pressure to maintain profit growth.

i want to leave with a comment from john malone, chairman of liberty global. he had an interesting analogy calling this potential deal "a big banana and a jar. how do you get your hand out with the banana?" mark: we have been trying to figure that out. manus: his personality, a lot of the making of these deals is the personalities driving them. the question of getting the banana out of the jar has to do with being top banana. mark: who gets banana once it is out of the jar. manus: it's all the cookies. mark: nyra. ladies first. then you are second, and i'm third. manus: thank you very much. mark: let's move on, the big story, an exclusive interview with bt group chairman live from the world economic forum on africa and cape town for stop should we talk about oil? crude prices heading to their

biggest weekly drop since march, with the speculation the 12-nation cartel will maintain its output target, leaving the market oversupplied. ryan chilcote is in vienna where the meeting is due to start later today. good morning, ryan. ryan: good morning, mark. we will talk to a man who has been to more meetings of opec envy and a than i can imagine, somebody that he gets a free upgrade and i think even has a better room this year than the irani oil minister at the interbank continental hotel, that is neil. guest: good morning, ryan. ryan: what everybody wants to know is what they are doing at the meeting. because everybody expects they are rolling over, keeping production as it is, what they should pay attention to in the fine print from statement? guest: everybody expects a rollover.

there is some rumblings there might be an adjustment to the target to represent what the actual production level is. ryan: legalize their naughty behavior. guest: legalize their current production. essentially, even if that happens, it makes no difference the actual amount of oil being produced. once that happens today and we look forward to the next meeting in six months, we have to start watching for several things. number one, is there going to be a deal to allow iran being its oil back into the market? is iraq going to be up to increase its oil production subject to the political stability of the country? will there be resolutions to the situation in libya? in the u.s., will shale oil producers reduce costs and reduce efficiency -- increase efficiency, which has been an impressive feature as they have responded to the lower prices. ryan: the strategy we were told

six months ago was to get rid of shale producers. get rid of them, cleaned them up, shake them out of the market, take care of the high cost producers, the long-term projects to hold on to market share. what is the deal? are they trying to save face? neil: it is not a question of getting rid of them. nobody would suggest that shale producers would suddenly come up with their hands up, holding the white flag. they were always going to respond to the new reality by finding ways of cutting costs, which they have done. total u.s. oil production has actually continue to increase. since the last opec meeting. opec members know the u.s. and other high cost producers are not going away. what we all have to adjust to is the fact that the next few years, for arom within opec and the u.s. itself, oil supply will

be in abundance. on the other side of the balance, global oil demand will not be growing by big enough volumes to absorb all the supply, so we will be faced with continual pressure downward on prices. ryan: what does that mean for prices by the end of the year? you mentioned the iranians, the negotiations, the deadline, the iranians sent all the other delegates a letter saying you need to make room for more. the u.s. energy department says when the iranians come back, it will shape between five dollars and $15 per barrel of oil. neil: that is to pull speculation and guess, with great respect to them. if there is a deal on june 30, i think that is the next deadline, it is not a question of iran increasing production immediately. what people should remember is iran has an enormous amount of oil in stock, whether on land

and also floating storage, in tankers. it could release that stockpile very quickly into the market and have an immediate impact. it is anybody's guess with that would do to the oil price. it is bound to send the price down surely, the less there is a compensating interruption to supply from some worlds, say for iraq as an example. between now and the end of the year, if iran gets a deal and if iran is allowed to export more oil, we can expect the pressure on prices to be downwards. it's hard to see any other outcome. ryan: final question, standing next to the monument to beethoven, i was speculating the saudis minister was skipping into the meeting, feeling his strategy of going after market share and not a high price not cutting production has been validated. you reckon that he is hearing music in his head? neil: i think the strategy is vindicated. it is by no means an and of the game. there is still a lot of things

to happen, but he can go into retirement, if that is what he is going to do, feeling he has at a very good 20 years and earned his rest. ryan: we will be interesting to see who the next guy is, because his predecessor was in power over 20 years. neil: the longest was 24 years. ryan: thank you very much, neil atkinson. it will be an interesting meeting. i will be talking to neil and the delegates and we will bring it to you through the day. mark: ryan, look forward to it. manus: join us both on twitter. should ryan chilcote get an upgrade, and indeed is he staying at the intercontinental hotel? they say it is very nice. some friends of mine covered opec a few years ago. do not forget mark barton's twitter if you want the bar

charts. mark: it is coming. it is about china. coming up next an exclusive interview with the chairman of the and say. stay with us. ♪

mark: the world economic forum in africa continues in cape town. and is there with an exclusive interview. good morning. anna: good morning, mark. i have a guest here who i will not delay introducing. the president of the cbi. thank you very much for talking with us. we have been talking in recent months about the consolidation taking place in the telecom sector. let's start with that. a frenzy of m&a.

how is that going, euro deal? guest: we are just waiting for regulatory clearance. we have had 99% approval from shareholders. anna: it must be complicated to get the regulatory clearance. we were reporting overnight vodafone and liberty global are in talks about consolidation tieups. what would bt's response be to that? guest: a lot of convergence is happening, huge convergence of data, broadband. all of these things the last two years. it was quite obvious the tectonic plates were going to move to create scale to provide what the public is the manning in terms of broadband, video access, data access. that is why we engaged into the deal. we think that will put us in a strong position. anna: if we saw vodafone, any

reason to object? guest: we would have the lawyers look at it, but competition is a good thing and we are happy to compete with anyone. anna: is this all around aquatic play? guest: in the united kingdom, i don't think quad play is there yet. triple play is. we are seeing that another parts of the world. spain is beginning to take off. our basic philosophy is based on triple play, fixed mobile convergence, giving the customers what they need, when they need it, and we are in position with quad play. anna: there seem to be regulatory challenges. do you foresee a situation where you will have to spin off? guest: no if it had not been for the bt investments in fiber in 2008 we would not have the

superfast broadband we have today. anna: so bt will hang on to it. guest: oh yes. anna: do you think that your competitors would be calling for to be sold off? guest: i don't understand that positioning. we just want to provide a great service to our customers. we don't think it is an issue at all. we have good relationships with the people we work with and supply to, and we continue to do that. anna: we are in cape town talking about africa. we had a panel yesterday about trade and the benefits of trade to the continent. no shortage of ambition in terms of bringing down borders. guest: no it is really impressive what africa is trying to do. it is at a crossroads to move forward. having more intra-african trade

is critical to breaking down the borders, physical borders, getting the infrastructure right. and this deal at the end of june i think is really important to allow trade going from cairo to cape town. think we will continue to see a lot of investment in africa. anna: in planning free, could they learn a lot from the european union? : guest precisely what i was going to say. the european market is an incredible market, five hundred million people including access to people, labor, and goods, but there are issues that have arisen that have created complex and unnecessary regulations that we want reform. in africa, they can take advantage of seeing what went very well and things that did not go so well and get something that really works for a hugely important emerging economy. anna: your position at the cbi is you want to see the reform relationship between the u.k. and european union. : guest --guest: absolutely, we

want to do sensible things, open up the digital market. we have stopped some of the lifestyle regulation careful to keep protection of individuals within the labor force, but not so inflexible to cause unemployment. we need to recognize areas where the eurozone non-eurozone, we need to do with those issues and take advantage of this massive 500 million market. it is so important to investors and jobs. anna: what do you make of eu membership in the u.k.? guest: this is a complex area. i think business just wants to seek out the facts about investment, jobs, and a plymouth. the benefits, the costs that are incurred, reformer to make the whole eurozone do better. 50%, we have 120 trade

communities linked through the european union. they are there because of the size and scale of the european union. this would be of huge benefit to the united kingdom if we get that done in jobs and investments. anna: we need more clarity on the negotiation, how high should the expectations be? guest: we need to leave that to the prime minister. this is across europe, not just the united kingdom. those are the things we are lobbying for, and the prime minister knows that. there are other things that are more political dealing with political issues that are clearly there. anna: mike, thank you very much. i hear the cow bell ringing, which tells us the session is about to start. r mikeake, the chairman of -- mike rake, the chairman of bt. mark: anna edwards, thank you

very much for that exclusive interview from cape town. time for today's bart chart. when will the chinese stock rally end? the shanghai composite climbed above 5000 for the first time in seven years and the world's biggest stock rally shows no signs of abating. in the last 12 months, this index has risen 146%. that is the most among global benchmark indices tracked by us at bloomberg. that is the equivalent of a 4 trillion market value. that is $3.9 trillion. $3.9 trillion. that is bigger than the u.k. stock market. it is bigger than the french stock market. it is bigger than the german stock market. this year alone, the index has soared 55%, record growth in margin debt helped add more than $2 trillion to its value. bulls say that gains are fueled

by confidence the president will succeed in turning the nation from an export manufacture into the consumer spending powerhouse. let's look at valuations. the index trades 25.1 times reported earnings, the highest since 2009. the most expensive relative to the ms pi world index in the last seven years. in the last 10 years, the median price to earnings ratio has been 17.5. if we look at how the indexes trading relative to future earnings, it is trading on 21.1 times estimated earnings, again, the highest since 2009. the median over the last 10 years is 13.56. the record for the shanghai composite was reached on october 16 2007. that is the green circle. you see that very clearly.

then, the index was trading on 48 times reported earnings almost double today's 25 figure, and it was trading on 42 times estimated earnings again almost double today's 21 figure. that is 6092, peaking in october 2007, preceding a year-long slide in the index that ended -- the red circle -- november 2008. in that time, the composite sank 72%. right now the index from there, the green circle to write here is trading 17% below the 2007 op peak. i've been doing technical analysis. it is trading above its 50, it is trading above its 200 day moving average.

that signals an uptrend. the last golden cross, the 50 day moving average crossing the 200-day moving average, happened august 11 2014. that is a very very positive signal. in fact, since then, the yellow circle right there -- that is august last year -- the index has soared by 128%. so always keep your eye on golden crosses. what may surprise you is the index is not overbought according to the rsi, the relative strength index. it is currently 69.7. any figure above 70 is overbought signal. it was overbought mid-march until the end of april, and for a week at the end of may. there you have it, the world's leading stock rally. when will it end? manus: and therein lies the question, when will it end.

quickly up to date with the equity market indicators, poised to open lower in london, paris and frankfurt. some of the markets, down in germany down 23 on the german government bond yields. we are yielding -- you have the greek there -- mark: the greek to year yield is down one basis point, the four year yield is down for stop the 10 year yield is up. might have expected a bigger reaction, in light of the missed payment. manus: absolutely, but greece has been in the news. german government yields trading backwards bill gross, a man who knows a thing or two about bonds, he is scared about the bond market. mark: and he has been in the bond market over 30 years. he should know what he is talking about. manus: absolutely. let's do is tell you london is off over 20 points. "on the move" is next.

they will have a conversation with the chairman of the african rainbow minerals. one of africa's richest men. mark: let's leave with the twitter board. a final goodbye. thank you. ♪

jonathan: good morning and welcome. we are moments of way from the start of european trading. happy friday. what's wrapup the trading week and get straight to your morning brief. greece becomes the first country since zombie a to defer a payment. crude drops on speculation that opec would not actually reduce the market pullout. they unveiled the production target later on. jobs today, 226,000 is the estimate for 2 -- how many jobs were added to the u.s. economy in may. the imf says rates to go nowhere

until next year. ahead of the open, i am looking at futures market, dax up. it did 100 futures down by 27. european markets just opening up. let's get more from our bloomberg team. manus cranny, over to you. manus: it is lower opening for the equity markets. it is all about the bonds. that is what it is all about. we are touching back to the higher quarter, almost at .90%. stephen major from hsbc will go through the master nation. -- masturbation -- game theory.