♪ anna: far from over. angela merkel says much more needs to be done to get a deal with greece. brussels. anchor: a ceo resigns from the head of germany's biggest bank as does another, and they will be replaced by john cryer. anna: and parting words from the outgoing credit suisse ceo. we bring you our exclusive interview. ♪ anchor: good morning, everyone.

you are watching "countdown." i am guy edwards. -- guy johnson. anna: good morning, guy. i am anna edwards. guy: were these guys the ones to be running this? and now, we have an answer. anna: announced finally over the weekend following a meeting, and we have a stock chart of it haven't we? if you boil this whole story down, i guess that is one of the key things. guy: they do not watch it on a daily basis. it will look after himself. anna: it underperformed its peers quite significant the so

4.6%, and the time were at 30%, so that is a big comparison. guy: people were talking about breaking this banks up, because that is what john cryer does. we will find out very, very shortly. we have some guests coming up. anna: we have some guests on the program. and some notes on italy. sticking with the banking sector -- guy: dougan. this is his exit interview. you kind of feel like this is the changing of the guards. he is leaving credit suisse. and then the replacement at deutsche bank. they say enough is enough. they have certainly been

hammered. that has been there situation along with the litigation. anna: what else are we watching? we are also watching the greek story. greece is still the word believe it or not. the u.s. and canada putting grief firmly on the g-7 agenda. and jean-claude juncker stealing the limelight at the g-7, talking about his lack of understanding of tsipras, the prime minister, what he was messaging. guy: he refused him a phone call, and juncker said "i don't understand what you are saying." anna: the creditor institutions, they put forward a planned. the greeks have put forward a plan.

guy: and we will be speaking to the greek economy minister. he is coming up later on the program, the we will get more on what the greek side of this story looks like. and there is a latin american eu summit, -- anna: we will probably be talking about greece. and we will get some great insight, no doubt, into the greek situation. guy: the monetary policy committee at the bank of england is very interested with what is happening. we will get his take. anna: a reminder, you can find us on twitter, @annaedwardsnews and @guyjohnsontv.

guy: significant job losses particularly. anna: yes, a referendum debate in the house of commons over the weekend. knows, of course, that they are divided on the issue. -- knows the prize, of course, that they are divided on the issue. -- no surprise, of course, that they are divided on the issue. guy: is christine lagarde going to have even more egg on her face, after saying they should delay the cycle? anna: yes, data on friday. g-7 day two, and apple is streaming their launch which is expected at the apple worldwide developers conference, so that is going to be interesting.

guy: we will bring those figures all to you a little bit later. let's find out what is going on in asia. another update for the chinese markets. let's find out exactly what these latest seven-year highs mean. let's go to hong kong with shery ahn. shery: yes, the market continues in china. the shanghai composite, you said, at its highest level since 2008, up 9/10 of 1%. we had chinese exports falling 2.5% from one year earlier. imports plunging 17.6%. the shanghai composite has dropped below that 5000 level briefly after the data came out, but it is now once again above that level.

the latest data underscore the sluggish domestic environment in need of more monetary easing. the hang seng is also up and that is reversing earlier losses, mostly led by h shares in china, which are the big gainers. now, let's take a look at some other markets. the cost be -- cost be -- the kospi was unchanged and the japanese shares are down 2/10 of 1%, one of the big decliners there. reversing earlier gains after data showed that japan's economy expanded more than previously thought. there were expectations for additional easing out of the boj, so now, we are seeing this slide because of the japanese yen also strengthening against the dollar after that data came

out. that was the first time in four days. you can see it after that data came out. we saw this, and strengthening right now. this is after japan's economy ran an annual faster pace than the initial estimate of 2.4% on a stronger pickup on business investment, as well as inventory. back to you. guy: thank you very much indeed, shery ahn. anna: anshu jain's time at the bank is coming to an end stepping down on june 30. jain health to turn them into a fixed income powerhouse, another coexecutive fitschen. guy: yes, they are turning to another to cut costs, john cry

an and there are the legal battles it has been facing. anna: we have this story in frankfurt. a busy weekend for you. how much of a surprise are these management changes? it was not that long ago that we saw very lackluster support. albeit, at low levels. >> good morning. it does look like a huge reversal, particularly for jain and he received a few weeks back more responsibility within the management board, he was given the task of overseeing the new strategic review and the new strategy at the back, and now just a few weeks later, he will be the first to go. as you mentioned it they were a huge voice of calling for changes in the top level management.

the lowest shareholder approval the management, in at least a decade, and many people have called openly for management to death down, so to that extent it was kind of expected that something could happen, but the timing does make it look like a huge reversal. guy: i imagine that many investors though will have something on their face this morning. what kind of a reaction are we expecting? shane: well yes, it does appear to be positive mostly on the side of investors. one of the reasons is that the bank has been saying for a few years that they are trying to push their cultural change at the bank and it is difficult to do with the people at the top of the bank who were there before the crisis, and you need a new face, so this gives them a new face. another positive is cryan.

cryan had a good track record when he was at ubs. anna: what are they expecting for the new ceo, shane? shane: the expectations are huge. when he actually came into ups, he came in 2008, while the bank was taking huge losses on the subprime mortgage market collapse. a few years later, when he left in 2011, the bank was profitable again the expectations are very high that he can come into deutsche bank, where profitability is lagging behind other peers, and get the bank back together. particular, they said they will cut back concern areas. they said they would spin off their consumer unit. also, yeah experience with that. when he was at ubs, job cuts were a huge topic. they pushed out a lot of people in a short period of time and he can make that kind of

turnaround at deutsche bank very quickly. we have a new face and a new strategy, but what does that mean? does it mean a new phase with the same strategy they are developing -- does it mean a new face with the same strategy they are developing? guy: those of the questions we need to have answered. thanks, shane. anna: let's bring in atlantic equities take analyst -- let's bring in an atlantic equities bank analyst. what are the expectations, do you think, for the new guy? guest: john took on this job. it was hellish from 2008 until 2012. all of the issues he has to deal with with capital, the u.s.

regulators, taxation, and he is going back in. what he is not is the sort of guy who will rally the troops. he is going to win the hearts and minds in a very different way. guy: when was cryan approached, do you think? it happened very quickly. it speaks of an institution very much in crisis. christopher: probably two months ago, but i think what occurred -- one of your colleagues sent me the notes. this could be about the russian money-laundering. we had the g7 starting yesterday. they are talking about sanctions, and their champion institution is accused of breaking sanctions and they are just about to give us the details. i just think this is what pushed

them over. i think the chairman got a call from somebody in berlin, and i think that is what this resulted in. anna: when you cover these stories on a day-to-day basis, we talk about the sector as a whole, and you almost become numb to these stories, don't you, and then use the -- use the -- you see money-laundering -- christopher: you can argue that he has some sort of responsibility for running the investment bank before the crisis. i do not know. really dynamic. and i think he was getting through this, but you get to a stage where certain things have to a line in the sand and i think the chairman really got the call. i could be wrong, but i think that is what caused this change at this time. guy: --

christopher: i think they will see john as a safe pace of -- a safe set of hands. guy: we will go live to the g7 summit in bavaria, world leaders putting pressure on greece. what does that mean for the government process of no more austerity? we will talk about that, when we come back here on "countdown." ♪

♪ anna: welcome back, 18 minutes past 6:00 here in london. he are the stories you need to know. general electric is looking to sell more than half of its u.s. private equity lending arm.

a management company seeks to buy the rest of the business according to people familiar with the matter. this comes as ge looks to focus on industrial matters. guy: and considering a takeover bid, according to a brazilian magazine, for giageo. -- diageo. anna: losing the majority in parliament in turkey, dealing a blow to prime minister eric on --e erdogan. the lira plunged to a record low against the dollar on the news. guy: let's go back to one of our top stories. leaders of the industrialized countries are with angela

merkel, as she hosts the g7 summit. and athens is very much at the top of the agenda. the money for greece's bailout. hans, let's talk about greece. what is being said? hans: well, what we have here is a reaction to tsipras' fiery speech, and it is not a positive reaction. if tsipras is losing friends, he is losing allies, especially jean-claude juncker, who tried to broker a deal. angela merkel was hashing things out on monday. he talked about how friendship requires rules. he was warning the creditors

could not pull out a magic trick. >> the fact that i exclude the idea of a greek exit is that i do not want to see it, but i do not want people to draw a conclusion from that, that at the end of the day, someone will say that the commission president is trying to pull a rabbit out of the hat. that will simply allow us to carry on. hans: there is similar pessimism from angela merkel. she told an interviewer -- she was talking about the problems not much progress. here is a quote from merkel. we must always have solidarity on the one hand. guy, anna, that is important because merkel is not talking about an actual deal.

she is talking about the conditions for a deal and she does not seem to think they are there yet. there seems to be a lack of trust. there was a lot of time between barack obama and angela merkel. everyone is trying to figure out what to do to get to a solution, but there does not seem to be much reciprocity from the greek side. guys. anna: hans, it is going to be a busy week, isn't it? hans: there is a big meeting later in the week, where a lot of the leaders will be. mr. tsipras has an opportunity to make a lot of progress. >> so we would have all of the conditions on the margins to discuss the situation with our greek colleagues and discuss further procedures. hans: now, you heard there there

is that summit later in the week. that is about the margins. we will see if anything comes out from today's sessions, if there is anything about what is happening or if there is a new deal, or a new proffer, to mr. suppress -- tsipras' government. guy: this looks like a very low grade summit we are talking about. hans: you asked earlier if i was in full garb, and i have paid my cameramen a sum of money -- paid my cameraman a sum of money not to pan down to see my lederhosen. it will be a mystery what i am wearing from the waist down. anna: i do not think you are

allowed to wear those this early on a monday. guy: the bavarian outs birdsong -- the bavarian alps, birdsong. our top stories this morning, we also got changes back in the banking sector. it is not just deutsche seeing changes. on his way out now. we had a nice discussion or manus cranny had a nice discussion with him about the regulatory story that shaped the financial industry since 2008. >> well, look. a lot has been done. the regulators have done a lot. the banks have done a lot, and a lot has changed. when you look at increases in

capital and reductions in leverage, the liquidity's side of things is one of the things i always felt during the 2008 -- the liquidity side of things is one of the things i always felt during 2008 did not get a lot of attention, and i think a lot has been done in those areas, which is good. obviously, the biggest question to me, if you ask me what the biggest issue is, is where do we stop, and ari going to continue to ratchet up the requirements? -- and are we going to continue to ratchet up the requirements? economic growth, job creation. i think we have to keep that in mind, and at some point, i do think enough is enough. guy: enough is enough. you're going to hear more from the outgoing brady dougan and

we will play the whole interview with manus cranny later on bloomberg television. anna: big changes coming at credit suisse as well. we are having a changing of the guard across the sector, are to be? -- aren't we? >> capital and leverage, and i was in new york last week, and it was clear that the u.s. banks are taking market share, and it looks like that is going to continue. guy: why would you want to be a banker at the moment? what is he going to do? these guys are going to make a ton of money somewhere else. >> the shadow banking industry. it is much more lucrative to move to private equity. they are not going to have

boutiques. anna: equities. guy: more coming up. we will talk more about deutsche, more about greece. it is a busy morning on "countdown." ♪

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campaign was about how much power should be held by parliament and how much by the president. they wanted to see a shift, but they will not have a majority to get that through. the market had not really like to the akp much despite the economy they have delivered recently. crucially, in the short-term we are seeing a record low. in fact, it is second only to the brazilian real in terms of the fx losses. let's talk about the dollar. the dollar rally may have gained another -- a second wind. a gain against its peers in the last week. the nonfarm payroll number came in better than expected.

they are really pulling forward their interest rate expectations, expectations of a hike now in september on the back of that number. guy: let's get you up to be with some of the big stories you need to know about. greece facing a week up urgent diplomacy to avoid potential default. in brussels today, the g7 leaders. there is pressure on both sides to reach a compromise. 7 billion euros worth of aid. anna: deutsche bank has named john cryan as a new ceo, with anshu jain stepping down, followed by juergen fitschen next may. guy: shipments fell from a year

earlier, and do you follow me? good. a slump in investment growth that is putting the growth target for the gushing -- four li ka-shing at risk. that is the bottom line. anna: let's bring in andrew sentence, with the monetary policy committee at the bank of england. good to see you on a monday morning. emerging markets bring to mind a growth story. you have been putting together your thoughts about where the world goes from now. what are the conclusions? we are still talking about emerging markets coming to the four -- fore? andrew: the powerhouse is asia. even though we are talking about the possibility of a bit of a

slowdown in china, 7% wrote is still respectable -- 7% growth is still respectable. and there is a growing importance of those economies. china is expected to overtake the united states in terms of the overall size of its economy. there are other emerging markets that are doing well in the fair weather conditions, when commodity prices were high. russia. they are struggling. and then you have africa, which is quite interesting. africa is quite commodity-based and some are reforming, like nigeria. africa, coming up from a very low base, and then other economies being quite volatile depending on the commodities cycle. anna: intake down last week quite a bit of excitement. -- in cape town last week, quite

a bit of excitement. guy: the payroll data friday. is christine lagarde right saying we should push out that rate hike? andrew: i think they should be raising in autumn. and i think the bank of england should be doing something similar. if central banks want to get gradual rate rises, they cannot put it off to the last minute. there is an increasing likelihood that the rate rises would be shopper if you keep pushing them off -- out. -- would be sharper if you keep pushing them out. then central banks have got to be prepared to move ahead of the curve. anna: some people suggest that just the fact that rates have

not gone up at all since 2006 -- we need to start getting back to something a little more normal. andrew: i think we need to change the mood music around monetary policy, because it seems to be operating on some sort of crisis, fighting mode. we are into the seventh year of economic recovery. the rates we set when i was on the monetary policy committee are not necessarily going to be appropriate. guy: so why does christine lagarde say what she is saying? talking about the elections there, clearly what is happening in the economy and the political story is exciting but this will be dominated by the fed. is that what she is worried about? the fed needs to do this? andrew: i think the imf are

looking at trends in the world economy and thinking that perhaps we can get back to those growth rates. i have talked the last two or three years about a new normal. the forecasted growth is still over 3%, still quite respectable , and we have got to get used to the fact that we will not necessarily have the go getting growth we had before the financial crisis. now, christine lagarde can speak for herself but that is maybe one of the factors that the imf and other forecasting bodies are looking to get back to those trends, which, perhaps, are not achievable now. anna: 2014 -- that time horizon? andrew: i think the growth before the financial crisis by the imf measure was about 4%, so this is a slowdown.

we are still going to see some upward momentum to the global economy from these that that economies like india china they are coming up the growth rankings and are moving up the development latter -- ladder, and even if they slow down we would expect chinese growth to slow as we get towards 2020 -- even if those growth rates slow down, there is still quite a bit of momentum on the developing and emerging-market. anna: andrew sentence stays with us. guy: at a party which has ruled on its own for years has lost its majority -- and a party which has ruled on its own for years has lost its majority, and what does that mean for the economy? let's go to elliott gotkine. he is in istanbul. not exactly what they were looking for. elliott: i am pretty much

waiting to see what president erdogan comes out to say. it will have to be a coalition. on turkey and the economy, i am joined by a senior advisor of an economic consultancy. great to have you with us. a bit of an upset there. from economic perspective, from an economic perspective, what are the results? >> they were hoping for -- not so much to rule out the constitution -- it will have great implications on the democracy side, but not so much for the economy, obviously going forward. elliott: they won the election.

is it because of the economy and high unemployment? are those the things on their minds? hakan: about 85% of the party base always voted in support of the economic forecast, which again, in the last two or three years -- inflation in the 8% to 9% range, and obviously high inflation and high unemployment, in the 11% range. this is about half the rate of 2008. elliott: we have already seen the turkish lira tanking. what impact is that going to have on the turkish economy and on the apparent uncertainty? it could lead to new elections. what are the implications of all of these things on the turkish

economy? hakan: it will postpone the reforms, postponed the policy. this will likely force the central bank of turkey which will meet on june 23 -- most likely in terms of raising the rate. there is about 5% or 6% that needs to be financed every month and the only way to stop the decline against the dollar in europe -- it will force the central bank to take up rates. elliott: there is the intervention of president erdogan. they feel free year now to do what they think is best for the economy? -- they feel freer now to do what they think is best for the economy? hakan: a likely coalition.

they have people with strong credentials to be able to lead in the more pro-market policies, and this will give more freedom to the central bank to do the right thing. elliott: all right, there is the national party and the akp coalition. in the kurdish area -- that the economy can -- hakan: yes, between the parties, that would practically be the end of peace talks. 45 days or less than a year. there will have to be early elections. they will need to be very strategic with whom they partner

with and what they say, but especially the pro-kurdish party . they will need to be even more careful because people from the other parties also voted in support of them. elliott: hakan akbas, thank you for joining us. this is for the first time since they were formed back in 2002, a majority for that party, an interesting day. we will wait and see what president erdogan has to say but for now, i turn it back over to you. anna: elliott gotkine in istanbul. guy: beautiful. a reminder, we are tweeting about stories you need to know about, and you can find us at @guyjohnsontv and at

@annaedwardsnews. anna: on friday, more reaction today about diageo, and we take a look at what is hot on our bloomberg business sites. -- site. ♪

♪ anna: welcome back. it is 6:47 in london. let's get our top corporate stories out to you and one of the stories we are looking at maybe active in european trading afterword that a bid may be in the offing for diageo. let's get to caroline hyde. good morning, caroline. caroline: you know the brand. dennis, smirnov -- guinness,

smirnoff. this was the biggest move we have seen in diageo since october 2008. what is behind it? the reports coming from a brazilian reporting agency that there could be a bid in the offing. word is brazil's richest demand could be involved and he is jorge paulo lemann behind 3g capital, and he also owns part of ab inbev. they could well be interested in other targets, one of them diageo. this has been circulated before. this is coming from a brazilian magazine, "veja," talking about

him buying into diageo stock. when they bought ab stock, they help negotiate the deal that made the world's largest brewer with inbev to create this juggernaut. is it realistic? this is what we now have to ask ourselves. how likely is a deal to come on the table? a bid for diageo is highly unlikely. coming from everc it would be justore -- coming from evercore it would just be unlikely. it would be something like $90

billion, a huge price tag. currently, diageo's price tag is about $70 billion. and they would want a chunky uptick. it was said that diageo would be the kind of asset that 3g capital, driven by their wealthiest man, would be interested in. and there was like the deal between heinz and kraft. and would they be interested in the guineeness brand? they are about 20% of the diageo

revenue. we have more details as they come in this morning. guy: the bloomberg terminal. you are watching bloomberg tv which allows us to convert the price into the london price, so what i am looking at at the moment is for the 86. so we closed at -- up at 17.60 and it looks like we will get a near 90% premium on the diageo stock this morning. nice for management. anna: for monday. now, our advisor, andrew sentence is still with us and we have another person who will

be giving us the trending stories on bloomberg.com. what have you got for us? let's start with one of our top stories, greece. >> an interesting look about -- of what is going on with greece and really be bad news about greece. it is not going to get better anytime soon. in fact, it will probably be more than a year before this can resolve itself, so we will be reading more about greece. guy: people talk about greek fatigue. are we still going to be talking about it? tim: there is always a tremendous amount written about it, and well read on our site. i think the broader implications --

and -- andrew: it would be a shock. the thing that strikes me is that the new government elected towards the end of last year has not really seemed to have come up with much in terms of reforms for the economy, which is much needed and is obviously needed to trigger the extension of the loans, so i think the ball is in the court of the greek government to really sway the imf and the authorities that they can actually turn around the economy if the money is provided. anna: we will speak to the greek economy minister at the top of next hour. guy: and we will be asking him what he would like to hear from the greek creditors. tim, let's talk about eastern europe and its desire for cider. tim: yes and it is interesting

after hearing caroline talking about ab inbev and others. it is not isolated to there. we are seeing the same things about craft ciders in new york. people just do not want to drink regular, old beer. anna: you talk in the story to a slovakian cider maker, who says the idea came to him from a friend who returned from the u.k. and gushed about drinks. what a proud moment. a turnaround in the drink industry. tim: and we have got to talk about deutsche. huge changes. andrew: it was a huge surprise

over the weekend, but we will have to see how it goes. guy: andrew, he wants to end banker bashing. we have got brady dougan on the program, as well, this morning. he has been ousted from credit squeeze. dougan talked about the regulation, enough is enough. andrew: there is a good point particularly when there are banks like hsbc, who are renewing if they are going to stay in london, which is important for the city center. i think with regulators, it is getting the balance right. the danger is the pendulum swings too far so you have to get the balance right when dealing with market abuses, and we are still seeing some new

things coming out post the financial crisis, but also recognizing that banking is an important sector. it is an important sector not just for the the regular economy but for the global economy. anna: in south africa, people were suggesting it was because of regulations that many of international banks are stepping away from lending to small and medium-sized businesses in africa, and there was a sort of risk aversion that came with regulation that had a global impact. do you think we are right in terms of the level of caution that we demand from our banks versus a sort of spirit of adventure? andrew: we aren't international economy, and banks have a diverse range of activities -- we are an international economy, and banks have a diverse range of activities.

regulators still need to make sure they are cracking down on abuses where they find them that i think the sort of general media story about banks is something we need to move away from. anna: andrew, thank you. he stays with us and tim, thank you. we will be back. ♪

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>> far from over. angela merkel says much more work is needed to get a deal done with greece. this ahead of negotiations. >> and they will be replaced by the former ubs cfo. >> enough is enough. the parting words from the outgoing ceo of credit suisse brady dougan.

guy: good morning. >> it has just gone 7:00 here in london. one of the big stories we need to talk about is what is happening at deutsche bank. >> that is a big story. in some ways it should not become as a surprise to most people. he has really struggled to him pose -- him pose on that business. anna: this is the stock that has been the worst performer since the co-ceos took over. i guess i move things on. we talked to chris weiner. he said maybe the money laundering occurred. we can get anesthetized to these spanking stories. it seems this one, whether that

had an impact on the business that could force the timing. what is the timing around this? if they have the change of management brought up, how long has he been in these conversations? >> he was on the board. his name is doubly linked to the business. maybe this happened earlier than anticipated. this is a hell of a job to be taking on. he really went through difficult time with that business. now he has to repeat it at deutsche bank. >> we were bringing an exclusive. he is saying enough is enough on the banker bashing which fits in honesty and we are going to pick up later this week. the u.k. government saying we need

to stop using that kind of language. >> johnson is expected to use that. we know there were problems. is this a reflection of the hsbc story? i think probably there is an element. maybe it is hard to disassociate these stories. we will see how that plays out in the papers the next morning. how does the general public react? it will be interesting. >> the u.s. and canada putting it on the g-7 agenda. we are covering the fallout from the g-7. he may or may not be wearing lederhosen. which greek plan are we working from right now? that is one of the key questions coming out for the weekend. it seems prime minister tsipras wanted to have a conversation. juncker said he had not received

the plan. the institutions have another plan they are working with. we will see how that goes. >> the pressure was amped up. the g-7 putting greece front and center. the meeting of minds seem to generate a response from the g-7 that was basically that it together, sorted out. you guys need to get on with this. stop messing around. we need to get some sort of deal on. that's talk to the greek economy minister. he joins us from athens. good morning to you. thank you indeed for taking the time to talk with us this morning. i listened to the prime minister's speech to parliament on friday. it was a fiery's beach. -- fiery speech. he talked about the credit system demands being unrealistic. which bit of the demands are

unrealistic? >> there are two areas of concern. one area has to do with a further cut in public expenditure, particularly pensions, which creates a number of problems. the other area has to do with drastically increasing rates so we have a combination of basic measures that we are not happy with. >> how much together are you? in which areas have you compromised? and which areas have he managed to receive a meeting of minds? >> i think there is a lot of space for compromise, because if someone follows the group

negotiation over the last two or three weeks, i think we have covered most of this space where we are in disagreement. there are areas of concern that have to do with 15 and 16. there are other areas the agreement still exists. i mentioned a few. i think with a little effort we can reach an agreement. guy: can you talk me through how much pressure the government is being put under? we hear there are major areas party is not happy with. is the real problem not with the creditors but with his own party? i am wondering how you resolve that. >> as you know, the party came

into power with a strong mandate to change the antitrust charity policies and at the same time had a program more or less which the government has done a lot of attempts and compromises in order to reach an agreement. probably this may create some attention. i think it is all exaggerated. there is no other way out. otherwise we have a political crisis. the government has a huge support. we have to go on the path we follow. >> you don't see the need for fresh elections? you don't see this deteriorating

into fresh elections in greece? >> that would not solve any real problem. we are entering a big area for greece. i think the elections cannot solve a problem. the government has a strong majority. if we can get a deal everybody is happy with it. guy: do you understand why people are taking money out of the greek banks? >> there is such a trend, but it is very weak compared to 2012 or

other periods. it seems to be out of control. the people seem to be well supported. we do not face any real problems in the banking sector. guy: it is irrational for people to take their money out of the banks right now? >> i think it is irrational. it is to get a deal. at the same time, the banking sector is part of the european system. i think there is no real issue for people to be concerned.

anna: how extreme is the liquidity pressure. >> or think we are committed. we must always be aware greece is paying its lines for almost a year. since last june without having received none of the payments the creditors were supposed to give greece. this has a limit, but i think we are committed as long as we can. >> i would like to know how long you can continue to pay the debt payments. were you involved in the conversation made to bundle the debt payments this month? can you walk us through how the

decision was made and why the decision was made? was it because you wanted to manage her own liquidity? why did that happen? >> i think there is an understanding between the greek government and imf. the previous month the payment was done to a special drawing fund. this month there was this idea on the table. for me it was a mutual process that both parties indicate they understand the circumstances and try to avoid putting too much pressure on the current system and give space to do the deal the way we would like to see. anna: are you underplaying your liquidity?

you have bundled them and one of them was made with the use of the special drawing fund at the imf. how dire do things look from where you are sitting? >> sorry. i didn't get the question. >> how dire does the liquidity situation look? you said you didn't make payments, but you bundled friday's payments on future payments, and you relied on the special drawing fund to make payments in the past. >> yes, the liquidity problem has been there for almost a year. obviously, there will be a norm is in july or august but i think there is a payment process of to this point as expected.

>> a great pressure -- pleasure. thank you for your time. anna: let's bring the economic advisor. andrew, what do you make of that? what are your thoughts? andrew: the tone is much more moderate. we hear from the finance minister. i think he said there were two sticking points. one is pension reform. i think the onus is on the greek government to come up with alternative proposals. there is a source of frustration. we have pension reform and many other european countries. i don't think it's appropriate

for the greek government to say they are not prepared to reform pensions at all. they need to come up with an alternative plan. >> you say, our pension system isn't as generous as the one they have got. that is a hard sell. >> this is not an issue confined to greece. many of them face aging populations. they need to find alternative tax proposals. the government in greece has talked about clamping down on tax evasion. i don't think we have seen a lot of action on that front. where are going to get the taxes from? >> he said the institutions were ok with a great plan to support the society and protect them from changes to pensions.

where do we go from here? how does this play out for the rest of the year? has this just a common up session? does it but the greek story back in the box? >> we seem to get some sort of agreement for these payments to be made. the greek economy minister tried to be reassuring i think they are struggling to keep themselves going, so they need the additional financial support. i think the longer-term issue is can greece find a package of reforms that will encourage investment to flow back into greece and create the impression it is a stable environment for the private sector to grow and invest? i think that's the real challenge. so far they haven't created that impression.

anna: thank you. guy: coming up we will be live in frankfurt with the latest on the deutsche bank exit. we will see you in a moment. ♪

>> it 7:20 in london. these are the big stories you need to know about. >> general electric is making a deal today. the sale comes as ge plans to refocus on industrial operations. >> the brazilian billionaire is said to be considering a takeover bid. >> dealing a blow to the

president. the results raise the possibility of a fragile minority administration. the lira went to a record low against the dollar on the news. >> three years atop germany's biggest bank coming to an end. he turned the lender into a fixed income powerhouse. the other co-chief executive will be there next may. >> he leaves the latest efforts to cut costs and resolves legal battles. shane good to see you. how much of a surprise were the management changes?

>> it seems to be a big reversal. just a few weeks ago he got more power in the management board. he was given responsibility for overseeing management. now it looks like he will be the first to go. it was surprising given the timing. there were huge voices calling for changes for some time. a few weeks ago shareholder approval was the lowest it has been in at least a decade. people have been asking for a long time. the time seems to come unexpectedly. >> the stock opens in 45 minutes time. what kind of a bounce can we expect? it's not as if investors have been particularly pleased.

>> it does look mostly positive at this point. people have been pointed to the fact the bank is trying to push a cultural change. they have been trying to say they are more client focused. it's difficult to do when you have people in top management position were a lot of stuff is being investigated. a fresh face could help them push forward with a new image. the fresh face is something somebody is saying he had an excellent track record at ubs. that seems to be a positive for investors. anna: thank you very much. let's bring you more from our exclusive interview with brady dougan. manus cranny sat down with the outgoing cfo. he spoke about crucial issues.

manus asked if there was ever a moment during the demise of lehman's that he considered buying some assets. >> i was personally at the table in the federal reserve in new york working through it. there have been a number of looks written about that. i find looking back it seems like there is a lot of history that is actually quite different from what i experienced in terms of what happened that weekend. our focus was on trying to work together with the industry to get to a solution. that was something we work very hard on and ultimately came up with solutions that didn't work out for various reasons. that was the big focus rather than looking at it as an individual firm working to come

up with a solution and making sure we were able to manage a tumultuous fallout. for me it was a very challenging time and one where you had to manage the business minute to minute. this was a very short time decision-making time for the business. if you are looking at acquiring assets at that point it was hard to know exactly what you are buying. i think that has been borne out. we had to make decisions quickly. if you are going to buy some and you had to buy it quickly. it's tough to know what you are buying. >> the limited due diligence, the sense of, what was it? was it panic? was it every man and woman for himself? >> some people were very engaged

in trying to work towards a solution. i partnered with some ceos, and we did a good job of getting people together. everyone rallied behind trying to work towards a solution. there were definitely people spending more time ticking about the agenda for the firm and how to make sure their particular firm came out of it ok. there were certainly people concerned. manus: did the fed have a grasp of the magnitude of the impact of letting lehman's go under? brady: i don't think the issue was understanding what the implications would be but understanding what is possible. i think the sort of political side of things really expected the industry to come up with a solution. i think we made some progress to

that but couldn't bridge the gap on the acquisition of the business that was on the table. i think that was a political decision of not being able to make the extra commitment to make it happen. anna: fascinating conversation. let's get final thoughts from andrew. we haven't talked about the u.k. . give us your thoughts. >> the u.k. could well be the top growing economy this year. i think the first quarter pictures were a bit disappointed, but the economy will bounce back. it has a stable government. it is progrowth in terms of its agenda. employment continues to improve. i think the bank of england should be starting to raise interest rates this year.

>> thank you very much. >> coming up for we are going to be talking about what is happening in turkey. the election results are in. see the market reaction. ♪

>> welcome back. let's find out what is happening in the foreign exchange markets. turkey a big deal. he got nowhere near what he was asked acting. we are starting to get the market reaction coming through. you have seen the dollar gaping higher. that is a two day chart, up over 5%. let's not completely focus on turkey.

the big number is still being felt in the foreign exchange markets. the result is reflected as well. i want to show you the terminal as well. the turkish tenure is open as well. you have a fairly big spike. you are seeing yield spiking in turkey as well. fairly negative stories coming through. we are seeing a fairly significant selloff in turkish and bonds. we are trying to get 9.96. we are down 8.82% in the stock exchange as well.

i think the market is making it very clear. the word is plunges. you are talking about a significant difference. anna: greece faces a week of urgent diplomacy to avoid potential default. talks are due to resume in brussels as leaders called for further movement. the g-7 raises pressure on both sides to reach a compromise that unlocks the aid. >> the current ceo is due to step down at the end of the month. >> china's exports fell for a third month in may while imports fell the most in three months. the trade slowdown coincides

with the slump in investment growth that is putting the growth target at about 7%. >> we're just under half an hour from the market open. let's take a look at equities. let me show you what is going on. this is a fair value calculation we can show you. this is going to give you a nice indication of how equity markets are expected. you aren't going to get this elsewhere. but the a little higher.

deutsche bank and those stock stories very much factored into it. let's focus on the market open. >> one company we are keeping an eye on this morning may be active in european trading today. that pushes shares higher. caroline: a big move potentially. they ended up 8%. this is a three-day chart. we saw some spike on friday when it suddenly jumped on the news that potentially a bid is in the

offing. you know it. smirnov, thales and look who might be eyeing it up. the brazilian billionaire. the wealthiest man from brazil. it is speculated that he is looking at making a bid. the private equity company george lehman is behind already owns a substantial stake in the rival brewer. it does no the beer market well. could they once again formulate a big deal? the billionaire lehman brought together and heiser bush to create this powerhouse. could he be thinking something

along these lines? it is reported by our brazilian magazine. that is what made stocks surge. this could be working. highly unlikely in the near term. it would be too much. they want a tidy premium. citigroup says they want to write the target. many people have been feeling 3g capital may be looking at miller. could they be interested in just the beginning?

crisis not just guinness. we are talking about tilting for m&a. talk us through that story. >> we are talking building. we are talking glass. this is talked about on friday. the private equity company was getting close to becoming the exclusive bidder for the asset. it is a glass packaging unit confirmed today. 2.9 5 billion euros. it is in exclusive talks. this is all about the building company trying to focus on building materials. they already sold the north american part.

it looks for almost 3 billion euros. >> thank you. we will bring you more as we get it. guy: james joins us from ucla. i think we would be up 90 p. >> if this deal was to go through, the synergy that would be required to justify the hike in price would be extraordinary. i would not anticipate a significant premium would be paid if we were to see genuine benefits. >> where were we on the emerging markets stories? that was such a driver for a long time. it has fallen away from some of these businesses. is that still the long-term story? >> they had a difficult time.

it has always been the case they have held up the expectations. we know the deflationary pressure has meant that consumer spending growth has been far less than generally expected. that is how they face the considerable headwind. there are companies. >> you get a couple of ceos. we are outlining the strategy. how much chaos is this? >> is a lot of chaos. there are so many other banks you can choose from. anna: shares have underperformed significantly.

>> how can be -- how can one be surprised? >> the expectation the ecb will gain traction it is not like deutsche. anna: as an investor who talks to management businesses, how do you feel about co-ceos? >> i think it is generally complicated. he answers the chairman. it is not correct to anticipate. >> the pressure to break itself up is fairly significant. hsbc is going to be in the headlines as well. it is coming out with a new restructuring. a massive bank.

hugely complicated. >> one wonders why one stays in london. it can disappear off to asia where it has significant valuations. they would be much different from their shareholders. guy: by breaking themselves up, there is actually less value. >> that is helpful. standard chartered stands out that were to do merge in a series.

anna: there is a lot of focus on the u.s. consumers surrounding the strength or weakness about that. it is clear companies are not yet prepared to pay out to keep their staff. consumer spending is going to be very difficult. the market has clearly taken on a good deal of optimism. there are twin pressures good quality companies will be re-rated up. i suspect by the time we get into the fourth quarter the u.s. economy will be shaky again. >> interesting. guy: we are going to look at the

markets when we come back. we are going to update you as we go towards the open. turkey very much in focus this morning. the stock markets have been pummeled first thing this morning. yields are up over the 10 year. we will show you all of that when we come back.

>> welcome back. you are watching countdown. >> greece faces urges in diplomacy. pressures to reach a compromise.

>> the current ceo steps down at the end of the month. >> chinese imports slumped the most in three months. the trade slowdown coincides with the slump in investment growth putting the growth target at about 7% >> we zoom in over here. at the moment we are looking for the ftse to be higher.

let zoom in a little bit. we can show you what we are looking at. that is how we are expecting the equity markets. those are the market opens we are expecting in around 12 minutes time. >> we talked about how it is a good day for u.s. data. one page on the macro and one page on italy. >> one of the things about

peripheral europe, people i talk to say, very inefficient, lots of structural problems. anna: you talk about how it comes out worse than rwanda. >> yeah, you have to look at the moving picture. a great company. you have to be contrarian. >> your argument is they are bad but getting better.

>> the momentum i think is profound. i think there is a significant following to get the reforms going where most people find it leads to the waste paper basket. >> elsewhere, we talked about where the markets are going on the short term basis this morning. a lot of individual stories with m&a in the air at the moment. how close are we think it with these global equity markets? >> i think we could have a significant squeeze. quality growth had its day. i think quality growth can continue to be pushed up. it makes me believe we should still be prepared to participate in a genuine long-term growth story. i look at wells fargo. a great franchise.

they have invested significantly in technology. i think shell is going to get a bigger slice of the cake. guy: stay with us. we need to bring in jonathan ferro, who will be up shortly. he will be delighted to hear what you have to say. >> we talked about italian banks. we are interested in greece, turkey, and deutsche bank as well. a move on the currency of 5%. we don't talk about that very often. a move of 8%. we don't talk about that very often. >> you don't see that very often. ask we are expected to wake up monday morning and talk about trying to get more powers. that's not the conversation this morning. i don't think people were prepared for it. anna: uncertainty seems to have

trumped everything else. this is a man over the last 12 months. increasingly shoving his nose in where central-bank matters are concerned. >> clearly this is down to the election. >> that's the broader story. you start thinking about the dollar bull market and what it means for the currencies like the turkish lira. anna: i was in south africa. i was talking to the finance minister asking what is going to happen to their currency. they were throwing in another dimension.

they were saying there could be weakness but on the other hand, look at what other central banks are doing at the time. we have the central bank of japan, the boj. but has full circle and go back to the macro picture. you have central banks making decisions this week. james: i think we will see them easing rates this week. i think it is a major error to think quantitative easing is a good ring. it leads to rising deflation rates. investors around the world are saying i'm going to put more money aside rather than spend the money. simply printing money is not having damaging impacts. i sense they regret the program in place.

quest we are focused on turkey. that's going to be a big story coming through. you have a new guy coming through. jonathan: it is fascinating. i have one of the representatives on the show. when i spoke to him it was about the strategy. you have the new guy coming forward. what is he going to do about existing strategy? where do we get his stamp on the way out? >> the new ones don't exactly get the thumbs up. >> we read the question. why do they let these guys implement a new strategy and then bring someone from the supervisory board across? my opinion does not matter that much. >> thank you very much. we are back at the top of the

hour. thank you for joining us. european equity markets are set to open in just five minutes time. >> it looks like the london markets are going to get a little bit of a bounce. the big story is highlighting the turkish market, being absolutely pummeled. you have got the tenure spiking as well. the market is not actually opening in a good mood. anna: watch what happens to deutsche bank. that could be a key focus. have a good night. ♪

jonathan: good morning and welcome to "on the move." deutsche bank departures. the co-ceo's are stepping down. john cryan is stepping up. turkish markets plunge. the ruling party fails to secure a majority government for the first time since 2002. setting the stage for conflict with president heard of them. g7 summit takes on a stalemate. the summit ends today. talks resume.

they are three of the things i will be talking about. i'm looking at futures market softer. for the future is pretty much unchanged. the stock mover, i know caroline hart is going to talk about it. caroline: it is never too early to talk about booze. we will also be digging into what is moving these markets. ftse likely to push a little bit higher. the rest of europe basically flat. down goes the cac 40 in france, off by 0.3%. once again, variation in central-bank policy and worries about greece. five months of negotiations, five years of a debt debacle and still no deal. they are trying to push through that. at the g7, obama is trying to put his concerns on the table. the market is just revving up