>> welcome to the program. welcome to "countdown."

it has just gone 6:00 here in london. tsipras launching a tirade of criticism against his creditors. the creditors are getting ready to respond. the imf and the ecb will hear from them today. the market seems strangely detached from what is going on. this is a picture across the spanish bond yields yesterday. we saw a spike in yesterday's session. that was lost later on during the trading session. we moved away from the move toward the end of yesterday session. we did not see quite the level of tension or anxiety being expressed by investors as we have seen in the most recent days. in the athens stock exchange, a bit of an exception. across european equity markets, we sell stocks up by the close -- saul stocks up by the close.

a bit of an outlier in yesterday's session. touching levels they have not seen since 2012. putting in a perspective with the global trading picture, we saw investors focusing more and what the fed might do than on the greek situation. major indices up by half a percent. investors thinking the fed would have to sit on its hands a little bit longer. with that in mind, should the greek situation delay the fed tightening process? plenty for everybody who is interested in the greek story anyone exposed to the market in

any way. we have a really busy agenda for you. the ecb will review its emergency liquidity assistance that it provides to greece. look include that the bank still meets the requirements to continue receiving emergency liquidity assistance. then we move on to the fed rate decision. a press conference by janet yellen. christine lagarde will speak later in brussels. tsipras says the imf there's criminal responsibility for what is happening in greece. we have the economic -- the eurogroup meeting in luxembourg. building toward that meeting tomorrow. a very busy agenda, who better to speak to than our next guest. he will give us his insight as to where greece goes from

here. asian stocks rose for the first time this week amid the speculation the fed will signal a slow pace of emergency tightening at the end of its monthly meeting. let's get more from hong kong. >> you noted in the open there seems to be a disconnect between stocks in your part of the world and what is happening on the ground. in some ways, you see that here in the asia-pacific. gains are continuing today, the first time we have seen ain't in the asia-pacific -- gains in the asia-pacific market. we see the decline on the shanghai deposit. elsewhere, even with greece in the frame, stocks are rising today and we are seeing some leadership in australia. as well as southeast asia. singapore, jakarta, gains of

over 1%. we see a lot of risk being taken off the table and that is what you are seeing in shanghai. there are two factors at work. this massive run-up by novice investors, margin debt that has quadrupled in size. other concern is the underlying economic fundamentals. does the chinese economy support this massive growth? investors are pulling out their proceeds from stocks to invest in new ipos. this is a market we want to follow closely. japan, threatening the over -- overwhelming economy, stocks down modestly. the yen is unchanged today. as far as stocks moving in japan, declining today, industrial related shares are the ones to watch.

we are keeping a close eye on what is happening in south korea. given the mers virus, do they have it under control? the focus is on the federal reserve and what janet yellen and company say out of washington. we will be watching it closely. anna: thank you very much. let's turn to greece and tensions are rising as a deadline to find a solution to the debt crisis approaches. hans nichols joins us from berlin with the latest of elements. the two sides seem just as far as part -- far apart as ever, don't they? han: you heard the speech by mr. tsipras a fiery speech. if you listen to what he was saying, it seems like now he was ready to negotiate. even when you take away the talk of the criminality, the real

negotiations are starting. it leaves the question on what was happening the last four months. time is running short. then you take what angela merkel said. unfortunately, she did not have any real progress to give but when she was talking about what they need to do to get to the next step, she seemed to be talking about the old program and holding out hope for potentially a new program. angela merkel: this is about greece conducting necessary reforms and fulfilling the conditions of second bailout program. this is not about any financing gap. it is about the points i listed in 2014 and whether there is sufficient progress made by the points set by the institution. hans: it seems as though merkel was leaving open the possibility for a longer term

compromise. there is a great deal of concern internationally. jack lew phoned mr. tsipras yesterday. you have seen incredible volatility in the bond market. pretty remarkable. we have the question of what will the ecb do. in terms of the payments due at the end of june, credit default swaps are all the way up to 81%. pricing in an 81% probability that greece will not make those payments. anna: let's not let the sunshine go to our heads. let's focus on what we are expecting to hear from the ecb. they have a tricky job to do. they're providing emergency liquidity assistance, but they need to make sure there are certain collateral requirements that are met. hans: reading through the tea leaves, we heard from a dutch

central banker saying as long as they are in a program and they have not technically defaulted they will continue with the assistance. it could trigger all kinds of problems. take a look at what mr. said yesterday -- draghi said monday. at this stage, the greek banks are solvent. we will have to look as we have been doing in the last few weeks. if they are going to change the collateral they need to accept, they will pose any kind of haircuts, they need a two thirds majority vote among the governing council. in some ways, i look at what is happening in the ecb as one of the more crucial events, but it will be hard to prod greece too much. if they push too far, will call the credibility of the ecb into

question. anna: hans nichols and sunny berlin. -- in sunny berlin. we are live in russia ahead of the st. petersburg economic forum. we will be bringing you coverage of that event over the next several days. we will be speaking about technology, talking to the arm holdings executive vice president of business development about the future of tech. plenty coming up on the program. as we look ahead for the rest of the week, plenty coming up from russia. the markets await news from the fed on rates and their economic outlook. we will take look at what the european crisis means for the outlook for the world's largest economy. ♪

anna: welcome back to "countdown. here are the stories you need to know this morning. christine lagarde is due to speak in brussels later today. the speech comes a day after alexis tsipras said the imf bears criminal responsibility for the situation in his country. jack lew called tsipras to urge him to reach a compromise. as the greek crisis continues to clout the global economic outlook, the federal reserve is due to release its latest review of the world's biggest economy. investors will focus on the fed's quarterly economic projections. janet yellen's press conference at 7:30 p.m. u.k. time. it will be watched very closely for clues on the direction of policy. lawmakers in hong kong have

begun their debate on possible elections for the territory's chief executive. it would give hong kong citizens a vote from a list of candidates preapproved by beijing. thousands of people have taken to the streets to protest against the plan. let's get more on the fed policy meeting with michael sneed. good to see you bright and early this morning. let's start with the fed. what are we expecting from the fomc? we get a press conference with janet yellen, don't we? we get some economic projections. are you hoping for a big change from the last time we heard from the fed? michael: it will be a bit of a mixed signal. it is probably going to be, we are not ready to raise rates just yet.

anna: are you talking about two hikes and interest rates before the end of the year -- in interest rates before the end of the year? they were suggesting we would see to rate hikes by the end of the year. michael: we are looking at the first being in september and the second and december. it has been suggested, but not yet priced into the market. there is still room for the dollar to strengthen. anna: the dollar fell back since march. the end of a strong run for the dollar. michael: we think when you catalyst to get the dollar -- we need a catalyst to get the dollar moving again. the fed -- the interest rate remains data dependent. we need a strong surge in q2.

anna: that was janet yellen's argument. the q1 data was a temporary thing we had to look through. do you think things have become better? and that john -- and that janet yellen was right? michael: it was due to the weather affects and the residuals due to the strike on the west coast. we should be seeing a surge in q2 and spilling over into q3. anna: let's talk about greece. what is at stake for the euro in this situation? you might expect that, tensions about greece questions of the very existence of the eurozone. it does have this flight to quality status occasionally. how will this play out?

michael: the water has already been muddied. it sets up -- anna: people think it is a safer place to go? michael: when risk aversion rises, you get great tension people reduce -- greek tension, people reduce their exposure. the euro strengthens in a period of high eurozone tension. this is likely to continue leading up to that key june 18 meeting. if we were to get an outcome where it looks like greece would default, we could see investors think the euro should be weaker. i will start selling euros on this bad news. anna: what do you expect in the

greek situation? do you expect there to be some sort of resolution? michael: our best case is that we will see a resolution. the key is the eurogroup meeting this week. either they come up with a resolution where greece implements reforms that allows our money to be released. that is the best case situation. the more likely case, they just extent the current program, buying time to continue the negotiations. if we were to get a kick the can down the road again that allows the markets to put back on some of the riskier positions the euro weekends on the back of a good outcome -- weajkens on the back of a good outcome for greece. the third scenario where they do

not come to an agreement, where greece defaults on its upcoming payments. it would lead to the likes of controls and a lot more tensions. anna: does resolution of the greek situation have an impact? to wear rates might go in the u.k. as well? -- two whero where rates go in the u.k. as well? michael: we need an indication from the bank of england to raise rates, that we are not likely to get that. anna: you are expecting a 9-0 vote. there always seems to be something standing in the way. michael: the data in the u.k. is looking positive. we will see the wage growth

continue to take higher. -- tick higher. anna: michael, interesting, thank you very much. the longer greece goes without a bailout deal, the more cash gets pulled out of the country. tom gibson takes a look at how desperate the cash situation is becoming. tom: greece is on life support and the greek people know it. they are pulling their cash out of banks and increasing amounts. 31 billion euros have been taken out of greek banks since november of 2014. deposit stand it 133 billion euros. the european central bank is maintaining liquidity in the greek economy. 83 billion euros has been injected by the ecb.

greece cannot agree with its creditors on the next course of treatment. unless it does, the ecb's triage could come to an end, turning off the funding and leaving greece alone. that would require an emergency procedure capital controls. it could restrict the amount of money transferred abroad. banks in cyprus stopped people sending more than 20,000 euros to foreign accounts and limited daily cash withdrawals to 300 euros. it could be better medicine to swallow -- bitter medicine to swallow. anna: we have been speaking with dick costolo. here is caroline hyde. caroline: less than a week ago

we have this sudden departure announcement from dick costolo. the return of the cofounder and previous ceo jack dorsey. we managed to sit down with dick costolo. he was very candid and very frank and humorous, not surprising. he used to be a standup comedian. he made clear that he felt it was pertinent to step aside. dick: we want to be able to do a full search for the right next leader for the company. if we tried to do that behind closed doors, it is going to be out there. it will be a bunch of nonsense and distraction for the company. caroline: praise indeed of journalism. in silicon valley, you will be found out.

therefore it would put the pressure. anna: open those doors right up. another tech titan under pressure, marissa mayer. caroline: she is almost three years in the job and yahoo! is a company that is not turning around. selling off its stake in alibaba . they've been trying to do this in a tax-free way. that is the breaking news the fact that despite potential changes from the u.s. in terms of the irs and tax changes to make sure that spinoffs cannot be tax-free. it seems alibaba will have first go. they have already announced the structure for the alibaba spin off.

interestingly, once they spun off their stake in alibaba, it is still about acquisitions at this company. >> our focus is on larger strategic acquisitions. building blocks, we make sure they are aligned with digital content. they also come for the technology. caroline: a month where they -- would not go by where they had not been buying the company. i wonder if that is true on this side of the atlantic. the ongoing london technology week. we are big part of it here at bloomberg. yesterday, i headed down for an awards ceremony. they wanted to make a bit of a splash. they had a horse -- managed to

ride a robotic horse flames coming out of its mouth. this was just on the river last night. it was a great technology event. i did get to speak with a drone company, it has raised $2 million in terms of capital. the coo was talking about how helpful it is to be a british brand. >> being in london is great, a lot of money and access to capital. a real tech community, and ecosystem we can tap into. caroline: a great event. anna: caroline, burning the candle at both ends.

she never sleeps. you are seeing live shots of st. petersburg right here. stay with us. ♪

anna: welcome back. half past seven :00 in brussels. that get a look at what's happening in the foreign exchange markets. we've had a good rally over the dollar in the last nine months up until march. it is reevaluating observations. since march, we have come off highs on the dollar. they question going onto the decision days of the fed is is the fed going to be on track for its first interest rate hike since 2006?

they are giving us a clear indication that we aren't going to see an interest rate change today from the fed, but watch out for the expectations of the members of the fomc of where interest rates are going to go over the next period. how high our quarterly borrowing costs going to be? that is going to be followed by janet yellen's press conference where the focus will be on the pace of interest rate hikes whence the cycle does start. in the last stock plot we got from the fomc members in march, they downgraded their forecast for how quickly we will see them rise. that was one of the reasons why we saw things moving sideways or downwards on the dollar index. that is a look at the foreign exchange market -- let's get you up to speed on the stories you need to know. christine lagarde is due to speak in brussels later today,

after the greek prime minister said the imf has criminal responsibility for the situation the country. the comments prompted the u.s. treasury secretary to urge to reach a compromise with greece's creditors. as the crisis continues to club the oak economic outlook, the fed is due to release its analysis of the biggest economy. investors will focus on the quarterly economic projections. janet yellen's press conferences at 7:30 p.m. u.k. time. we will also be watching for clues on the direction. hong kong has begun debates on possible elections for chief executive. the china backed proposal would give hong kong citizens a vote from a list of candidates preapproved by beijing, but thousands of people have taken to the streets to protest against the plan.

it has been a year since sanctions were imposed on russia , but it has not stopped the efforts to will investors. tomorrow, vladimir putin will begin courting national investors at his annual economic forum in saint petersburg. that is where we find ryan chilcote, fresh off his interview with the president of ukraine. it's a tough life, ryan. the international economic forum -- put it in perspective for us. ryan: this is vladimir putin's forum. it is obviously beautiful here but the business leaders don't come to see saint isaac's cathedral. they are here to see what the climate is like, and they are here to be seen by the president's team and other business leaders in the country. if you think about it, this is really the one economic forum

you have to go to if you are a business leader that wants to invest in russia. that is why europe's three biggest oil companies are all here, the one political leader everyone is talking about in europe the greek prime minister, will be coming. this really is the place if you want vladimir putin to recognize that you are interested. our role as a little bit different. we will be talking to a good dozen officials and business leaders here to get a sense of what it is like to do business right now in russia, given the geopolitical climate and the sanctions and the price of oil. we will take that coverage off with a guest in about 45 minutes the chairman of a company called kiwi. it has benefited from the sanctions. that is how we will begin our study. anna: this is your eighth forum

the idea being -- cnbc. -- csee and be seen. last year we were talking about whether people would show up because of political tensions. ryan: looks like a few more people will show up this year, and i think the mood is a bit more optimistic though that might not be saying much. last year, they moved it from this weekend may because russia was going to be hosting the g8 which was subsequently canceled. then sanctions were introduced and the u.s. government told many business leaders that they shouldn't come to this forum. this year, we understand that the u.s. government has instituted a don't ask don't tell policy. as long as you don't ask whether you should come, you are welcome to come, or at least they will

turn a blind eye. but there are issues that remain. the new issue since last year is russia's economic issue, the economy is set to contract at the end of this month by 4%. the expectation is that will be the picture for the coming quarters. central bank says that if oil stays at price, they can plan on being in a recession for the next two years. then there is the big pie-in-the-sky, what will happen in terms of russia's standoff with the west. the only people everyone agrees knows the answer is vladimir putin. risks remain, anna. anna: thank you. plenty more into the rest of the week, when the action kicks off at some petersburg. this friday, you can watch "charlie rose," in a conversation with vladimir

putin. that will be here on bloomberg. we will bring you live coverage from noon u.k. time. let's stay with russia and bring in our guest host. he is -- good to see you. let's pick up on the russian angle. as ryan was talking about, it is crucial if you want to be a big deal and russia. this is an economy that is set to contract by 4%. headwinds exist, clearly. what is your assessment? >> to problems. -- two problems. it is not as reformed as it should be. and it is global. the price of oil is what's keeping them down. but it is still a very large

economy. if you are a western company if you want to do business in russia, putin has to see you turn up. as your correspondence at it, it is safer than last time. anna: are international -- our international -- we have been talking about diversification in russia for years. he talked about becoming more technology dependent. saker: they are not going there as fast as they should. in some ways, russia is retracting, more belligerent. president putin will strengthen armaments -- he is quite aggressive in his policies. but it is still a huge economy, and it is still a big market. anna: even if oil prices stick

around $60, it wouldn't be a great time. let's talk about what's happening on the income side in the u.s. right now. they had the fed meeting yesterday and today to set interest rates and give us their assessment of the economy. oil played a major role in what's been happening in the last six months. the data was just out -- saker: that is what it looks like. chairwoman yellen seemed to indicate that in a statement. we are beginning to telegraph to the market that they will be a hike rate. -- there will be a hike rate. she thinks it was a blitz, just seasonal they said they will telegraph in advance. i do think she is right. unemployment is pretty low, i .5% now -- 5.5% now.

that is pretty much where it should be. now is the time to raise rates. anna: do you say conditions right are raising rates? two times? saker: probably oncesaker:. but really well telegraphed, so the economy knows about it. anna: i was going to say -- how do equity markets react once the stoxx see this? this having been talked about for many months. saker: by the time it has happened -- it is interesting, lagarde said not this year, next year. anna: is she speaking from an emerging markets perspective? suggesting that even though the fed said policies for the united states, there will be implications around the world -- saker: she is likely speaking for the rest of the world, and

the u.s. is way ahead of the pack. europe is not anywhere near at the beginning of the recovery. but the u.s. -- performance has gone down some of the best years in the state. housing is picking up. some say she will have to start worrying but hopefully the price of oil is not going up. but it is going to happen soon. anna: thank you very much. he will be here for another hour or so. just a reminder that you can weigh in on some of the stories we are covering on twitter. today's twitter question is should the greek situation delay the fence tightening? -- the fed's tightening? we have had a couple responses. coming up next, we look at how great companies are preparing for a possible capital control.

we are brought the best from our bloomberg asset. ♪

anna: welcome back. here are the stories that you need to know this morning. christine lagarde is due to speak in brussels later today. the speech comes just a day after the greek prime minister said the imf bears criminal responsibility for the situation in the country. the comments from the u.s. treasury secretary urge him to reach a compromise with greece's creditors. lawmakers in hong kong have begun their debates on possible elections for the territory's chief executive in 2017. that china backed proposal would give hong kong citizens a vote from a list of candidates approved by beijing. thousands of locals have taken to the streets to protest against the plan. as the greek crisis continues to

cloud the global economic outlook, the federal reserve is due to release its latest review of the world's biggest economy. with policy makers expected to hold interest rates year zero until september, investors will focus on the quarterly economic projections. janet yellen's press conferences at 7:30 p.m. u.k. time. we will watch closely for clues on the direction of the policy. let's talk tech. europe's leading tech firms are gathering in london today, with influential entrepreneurs due to attend. it is also celebrating its 10 year anniversary. the cofounder joins us now with more. good to see you. it is 10 years old -- a big event. how do you look back on the last 10 years? johnny: we have been lucky enough to have a ringside seat on extraordinary stories to

emerge from the great startups it increasingly, we feel a lot coming out of europe. my cofounder and partner is where it all began. it is a reminder that london is an important gateway to the rest of europe particularly with relationships informed -- very important. we continue to encourage investors to get going, to build a disruptive businesses to foster good relationships with corporates. anna: what is the relationship between london and the rest of europe from a tech perspective? jonnie: i think we are gateway. we are an important market, a cultural center. we have an enormous number of entrepreneurs building businesses in london and london

is a gateway, a very important one. i think our relationship is not strictly political. we encourage people to be as international and multicultural as possible, and therefore london is a great place to build a business. saker: you mentioned you have corporates getting involved -- have you seen a shift? are they bore in the mainstream? jonnie: one of the trends we have seen over the last 10 years is something we have tried to encourage -- we just launched a report yesterday on how to encourage that relationship between corporates and startups embracing disruption better. it is an ecosystem where both parties need each other. certainly the founders forum --

there is an ecosystem. it is all about how startups can work with corporates to see this disruption and innovation can build great projects. yes, there are startups who go on and remain independent for their entire lives, but in most cases, the relationship between corporates is critical. saker: do you still think that europe and particularly the u.k. -- have they lost their edge in terms of technology? jonnie: i don't think the u.s. has lost their edge at all, and the west remains a hub and epicenter for the emergence of some of the greatest technology companies in the world. there are three times as many

billion-dollar technology companies that have come out of the states as there have been out of europe over the last 10 years. interestingly, there have been nine times as many ipos -- a lot of it is coming from america. we have seen a lot of that now shift toward europe. to answer your question, one of the reasons we have seen that shift is because a lot of the hard core technologies are being commoditized, and international technology company. whether it is a creative industry or other sector europe has a lot of skills that help start up new businesses. anna: what is exciting about the start up businesses you are looking at? is it all about sinyntec for you right now? jonni i thinke: syntec is

fascinating and it is a world right for disruption and change. disruption is coming from within and without. it is a classic example of an incredibly successful entrepreneur building a disrupted asset management business and i am sure he will have a big impact. there are lots of examples of other companies emerging. what's interesting about london is its other sectors, creative industries, which london and the u.k. are known for, seeing huge impacts across tv film, disrupted -- embracing digital. we are seeing really interesting businesses growing.

it is that marrying of different sector skill sets which we find one of the most interesting things. digital disruption permeates a number of different -- anna: thank you for joining us. jonnie goodwin. saker is still with us. let's leave technology and talk about greece and how it is transfixing the investment community, or not, as the case may be. i saw a great story from our colleagues, saying that europe's stock strategies are bullish in the face of greek impasse. all markets are sort of divorced -- saker: we saw that yesterday. i think as investors concentrate, -- you can't kick

someone out of the eurozone. but they can default within the euro. that means they will have controls, capsule controls, and greek companies are putting money so they can get their cash out. it is almost inevitable unless america happens. it doesn't look as if it is going to affect the markets. if they go outside the euro that is a decision. anna: how will this -- it is good that you bring up this story. let's bring tim coulter from bloomberg.com. good morning. you have a story on just that -- how greek companies are preparing for capital controls. tim: more than preparing -- have prepared. one of the most interesting things we found was that the companies who have been preparing have been doing this for years. one has been preparing since may, 2012.

anna: what does preparation constitute? tim: every company we talked to said -- don't worry about us our money is somewhere else. [laughter] anna: i wonder if the ecb is bearing that in mind. what else have you got for us today? another story about putting your money somewhere else -- in relation to walmart? tim: exactly right. corporate tax has been a big interest of ours, and we have been writing a lot about it. $76 billion of walmart's money is outside the u.s. now, outside of tax controls, a lot of it funneled through luxembourg and the netherlands. anna: do they offer any explanation? tim: they say that the report is incomplete, and it was funded by the united food and commercial workers union, which has been a

big adversary of walmart. we have to bear that in mind. but are we surprised that walmart is looking for ways to find tactical advantages? anna: talking food maybe some great food in london? expensive. tim: that was the summary of the review. actually, what they have done is pretty remarkable. it really is wonderful. the new chinese restaurant. this summary was "expensive, bad service -- great food." [laughter] anna: it is a start. it must have improved considerably over the last 10 years. saker: good food, bad service. when i was a student, there was restaurant in leicester square.

so if you are hungry there is a lot of food that is really cheap, but really bad service. anna: but that was the point of it. it was a tourist attraction. thank you very much for joining us. minutes to go until we take a short break. at the top of the next hour we will be talking about the greek situation. what do you think is on the minds of the rating agencies right now? saker: the main worry is the cohesion of europe. it is interesting that they downgraded the u.k. now. because of the possibility. their main concern is the structure of the eu. anna: we will pick up on that in a second. he stays with us. coming up next, we are live in moscow, speaking to the chairman

of the russian electronic payments company kiwi. we will take a look at how the paypal of russia has benefited from the sanctions. ♪

but lagarde's reaction. the fund chief speaks in brussels today. with the greek crisis clouding the outlook, will the u.s. federal reserve change its assessment of the biggest economy? and nominees chosen by at china backed committee. -- a china backed committee. it has just gone 7:00 here in london.

let's bring you the latest on the greek story and ask what the markets say about it. we have got alexis tsipras launching a tirade against reese's creditors. we will hear from the imf and the ecb. -- against greece's creditors. i have got the 10 year yield on spanish government debt for you here. you can see the spike we saw at the start of yesterday's trading. investors started to see more contagion from other asset classes. that didn't last. we saw that moving lower on the spanish tenure. the stock market strangely devolved from what was going on on the greek story. we saw the athens stock market coming under pressure. the banking sick or are again

under pressure. this -- banking sector again under pressure. elsewhere we actually saw many of the indices up around half a percent. the ftse fairly flat. let's see how the u.s. markets fared. the conclusion seems to be perhaps the crisis in greece was going to mean the fed would sit on its hands a little bit longer and not increase interest rates. that seems to be why we had a little relief coming through on u.s. equity markets. the asian equities section has been in full swing and now coming towards its close. we have a mixed picture of the nikkei. the other markets picking up on the positive momentum surrounding the fed. let's take you to the twitter question. should the fed delay the cycle?

should it start in september, or should it wait because of the greek crisis? some americans are worried about this. the u.s. treasury secretary phoning alexis the press warning he needs to get serious about some of the reforms. -- alexis tsipras. we have a number of speakers in the spotlight. the ecb will meet to talk about emergency liquidity assistance. will the greek banks continue to make the grade to be allowed to have that emergency assistance? we get that decision from the federal reserve followed by a press conference from janet yellen. and then madame lagarde will speak later. this a day after tsipras said the emf bears critical

responsibility for the situation. a big day, and that paves the way for the meeting we have tomorrow and luxembourg. tomorrow he will put that in perspective. let's begin with the greek story. the pensions are -- tensions are rising as the deadline to find a solution to the debt crisis rises. our international correspondent joins us from berlin. how has it tsipras speech gone down in athens? >> we see alexis tsipras. the greek stance is we have gone down as far as we can go. we will cut pensions and financing and plans for debt

relief. the ball is in the creditors court. no change in tsipras's speech. almost universally in greece people think this is a bad deal. at the same time, if you look at opinion polls, most people think it is a bad deal. when push comes to shove, 57% say it is better to pay this deal rather than risk greece going out. anna: on's, we have heard from angela merkel and -- hans we have heard from angela merkel. they are putting pressure on greece. >> the u.s. are putting their thumb on the side of the

germans. yesterday from jean-claude juncker we heard they haven't even spoken since sunday night. he was fiery as well. he says, i care about the greek people. not the greek government. you overlay that with what was said yesterday about not having any status reports on where talks are, but if you listen closely, you can see merkel is maybe potentially hedging quite heavily, talking about a longer-term solution because most of the focus is on the current program. >> this is essentially about greece conducting necessary reform. it is fulfilling the conditions of the bailout program. this is not about financing gaps. it is about the point i listed in 2014 and whether there is sufficient progress set by the

institutions. >> we also heard from japan in an interview. he is talking about going into the great unknown. doesn't know what will happen. doesn't want to potentially go in that area. we have seen movement on credit default swaps. they are pricing at 81%. a little bit of increase. then we saw big moves in the bond market yesterday. you were mentioned==ing the spanish debt. all the way up to 29%. we will be watching that as well as what other finance mr.'s saying. the austrian prime minister is also visiting mr. burris and has a meeting this morning. -- mr. severus -- tsipris and has a meeting this morning. anna: what are we hearing from the ecb?

hans: we will be looking at two things. how much they will increase the emergency assistance. they have kind of done it based on how much outflows have been. some weeks it has been around 700 million. we will take a look. the big question is what are they going to do on collateral. will they change at all? we heard about the dutch central bank or. they probably won't change it as long as they aren't in default. here is the latest from mr. druggie. it doesn't seem like he is all that willing to change the rules. at this stage the greek banks are solvent. the situation is in evolution, so we will have to look as we have been doing at the last few weeks. oh wait and see approach is the public line from mario draghi. he wants to see the sides start negotiating. he is urging all sides to come together.

no one is that optimistic about the deal on thursday for the eurogroup meeting in luxembourg. very little talk about there being any sort of progress in luxembourg on thursday. anna: we will temper our expectations. thank you as well. standard & poor's has said it will not change its rating on greece to selective default status in the event the bank misses its payments on the bonds held by the ecb. let's get more on this and the broader thoughts on the greek situation. i am pleased to say we are joined by the s&p head of sovereign ratings. rate to see you. can you give us more clarity on how you would treat any potential defaults against the ecb?

you wouldn't consider that to be a selective default? that's the situation is quite simple. a sovereign rating really reflects our assessment of the likelihood of commercial loans or bonds not being served. this has not expanded to official creditors or multilateral loans. we consider the ecb to be an official creditor, and not paying the 6.7 billion and the two installments in july. august would not constitute a default. clearly this would be another sign of mounting stress and pressure on the cash flow and liquidity in the greek public sector. this might have further downward impact on the rating. anna: we have got the ecb

decided whether to continue to extend emergency assistance at the same level to the banking sector. can you envision a situation where the ecb withdraws that liquidity assistance they provide to the greek banks? x imagine a situation -- >> imagine a situation where the two partners would fall out in a way. it is quite clear the program is not going to come back. greece is on the fall to the imf, let alone the ecb. i find it hard to imagine the ecb would continue to allow the bank of greece to administer emergency liquidity assistance. in such a situation the greek banks solvency is no longer in question. you would have basically the

bills being in default or near default. you would have to subtract probably the deferred tax assets, which make a significant part of the tier one capital. if you take that together i think it would be hard to argue in such a scenario the greek banks remain solvent and if a bank is not solvent, the ecb cannot administer liquidity, emergency or otherwise. >> would that naturally result in capital control if the ecb withdrew that assistance? >> that is the most likely outcome. we are not there yet. if this scenario unfolds, we would have to expect depositors in the greek system would form longer queues in front of the banks and trying to withdraw the money. without the liquidity provision, the banks could not make good on those demands.

they can be withdrawn on deposits. capital controls would be the consequence. we are not there yet, but if the ecb were to decide it would have to decide it has come to an end. it's hard to imagine any other scenario than the one i just described. >> if you get in a situation where it looks like no deal will be done by the end of this month and it stops being a question of whether greece defaults into the euro will that lead you to reconsider the outlook for the euro because of contagion possibility and questions about the solidity of the euro? >> there is a great uncertainty about what would happen next. my perception is that squares

with some of the surveys we do. the majority of investors until recently have not a leave a grexit is a likely scenario. -- would not have believed a grexit is a likely scenario. i would caution by saying if you really look at contagion risks through the direct links of common creditors, it's not really that important anymore. most importantly we have much more powerful firewalls. the last time around we just said the court of justice confirming a powerful instrument to stave off speculation against another eurozone. we have had that confirmation. we have qe. there is really a much bigger toolbox than there has been before. the political will i expect

to be there to direct those firewalls. i would believe even in the negative scenario the contagion risk should be manageable. anna: thank you very much. great to hear from you. second our guest is staying with us a little bit longer. as we had to break, 17 million users use qiwi payment services at least once a month. we will hear from the chairman ahead of the international economic forum. that is next.

>> welcome back. 18 minutes past eight if you are watching in frankfurt. here are the stories you need to know.

christine lagarde is due to speak in brussels later today. the speech comes a day after alexis tsipras says the imf bears criminal responsibility for the situation in the country. the comments prompted the u.s. treasury secretary to urge him to reach a compromise with greece's creditors. as the greek crisis clouds the outlook, the latest review of the biggest economy. investors will focus on the fed's quarterly economic projections. janet yellen's press conference at 8:30 central european time. it will be watched closely with clues on the direction of policy. lawmakers in hong kong have begun the debate on possible elections for the chief executive in 2017. the proposal would give a vote from a list of candidates

preapproved from beijing. thousands of people have taken to the streets to protest. let's make our way to russia and to st. petersburg, where the st. petersburg economic forum kicks off tomorrow. ryan chilcote is therefore a preview, and he is joined by a guest who knows a thing or two about russia. -- is there for a preview and he is joined by a guest who knows a thing or two about russia. ryan: thank you for being here. let's start by explaining exactly what qiwi does. >> qiwi is the biggest alternative in russia. we have to products. the first is a kiosk, which is a cash payment machine. you could use cash to pay for everything, for mobile operator

bills, e-commerce. ryan: how many rivers atms do you have? >> we have more than 100,000. we also have some supermarkets so they could also accept cash for payment. ryan: and then you have online payments. >> there are banking accounts and mobile accounts, and we have some obligations for platforms like apple and so on. ryan: if you look at first quarter profits, it's pretty clear that at least indirectly your company benefited from sanctions or at least the turmoil in the banking sector in

part caused by sanctions. how did that happen? >> that's true. we have a cash payment system and a non-cash payment system. is it preferred to pay cash? if they prefer to pay non-cash they use qe1. ryan: they are going back into cash. >> to a certain extent over the last year when the banks had troubles and the situation was very unstable. there was also a big exchange rate between wrubel and dollars. >> the big issue now is the economy. it is said to contract by 4%. you are not immune to that, are

you? >> the reason we are relatively stable is the shares of qiwi in some e-commerce payments is very low, so we have a lot to improve. we could benefit from this area changing. we could grow in our market share. ryan: i want to ask you quickly. a gentle man says america's interest could be hurt more by the sanctions against russia than russia's actions in ukraine. one reason he says is russia may retreat from the global financial system. you and i talked about the idea of establishing a national

system. do you think there is a danger that russia is turning in a little bit? >> there is a danger, especially with the national sector. the national payment system, they made good jobs last year. they already switched some sections of the set and mastercard. they also plan to issue russian payment cards. i am a bit optimistic about this. we are a russian company, and we operate in russia. ryan: i want to ask about a new york times story that came out on thursday where they reported on people using your payment system and other payment systems to funnel money to people

fighting in the ukrainian military. i know your company said they closed many of the accounts? can you be sure they closed all of the accounts? >> that is always a problem. it was a breach in provision of some user agreements. we banned using key we wallet for raising money for anybody. that was a problem. -- using qiwi while it for raising money for anybody. >> we have got to go, but have regulators been in touch with you. have any officials said they want to be in touch about this? >> not yet.

ryan: the form is coming up. we are gearing up for it. we have got a lot of guests to talk to about doing russia -- doing business in russia. >> 200 years tomorrow since waterloo. meanwhile, the u.k. continues to wrestle with its relationship with the rest of europe. >> it's interesting. the battle of waterloo was one on the fields of eaton. -- won on the fields of eaton. the economy is going better than expected. it is just over 3%. more than a trillion pounds of investment. yet the conservative party is beginning tension about this whole thing.

you have to be very careful. one thing the u.k. has which is unique is the city and the city needs european integration. anna: thank you for joining us. when we come back we will talk about technology.

>> welcome back. i have got a chance of where the dollar index. a lot of questions remain about the fed. will this year marked the start

of the tightening cycle for the federal reserve? no change in interest rate is expected from the fed today. we get a press release and a new economic forecast coming later today. no change expected in the interest rates. we get the forecast from the members about where they think interest rates are going to go in the united states. that is followed by a press conference. plenty of focus on what janet yellen has to say. the last time we got this forecast was in march. they downplayed how quickly rates increase. that had an impact on the dollar and rate expectations. we will be mindful of all of that as we wait for the fed to speak. here are the stories you need to know. christine lagarde is due to speak in brussels. this comes a day after alexis tsipras says the imf bears

responsibility for the situation and the country. this prompted jack lew to call tsipras to reach a compromise with greece's creditors. as the greek crisis continues to cloud global economic outlook the u.s. federal reserve is due to release its latest review of the biggest economy. investors will focus on the quarterly economic rejections. janet yellen's press conference at 7:30 p.m. it will be watched closely for clues on the direction of policy. in the u.s., businessman and television personality donald trump declared he is running for the presidential nominee. trump issued a financial disclosure before his announcement, claiming a net worth of $8.7 billion. trump promised if elected he would bring back america's jobs

and money. let's take a quick look at the markets. this is how we are expecting things to open. yesterday, despite the negative news from greece, we saw some moves higher in european equities. it looks like we might be set for another day of that. european stocks are set to open higher because people are starting to reprice exactly when the fed is going to move on interest rates, and that is having an impact on equity markets in the u.s. and europe. let's remind ourselves where asia is heading overnight. 7:33 is where we are here. 27 minutes from the start of equity trading. the positive was filtering through into the asian section. the shanghai composition moving higher. european bond markets were on a

bit of a roller coaster ride yesterday. we saw a spike in some peripheral bond yields. people started to stress a little bit about the periphery of the eurozone and when we might sir to seek and agent from the greek crisis into other bond markets, but that was quickly backtracked away from. you can see we are pretty much unchanged this morning. let's talk about technology. a week after twitter ousted its ceo, we have been speaking to them in the united states. caroline hyde is here with details. what kind of mood was he in that he had to make this big announcement? >> he looked pretty tired. it's not even a week since he stepped down. the founder came riding to the rescue. he was very blunt and humorous. this was a man who used to be a standup comedian. he told our reporter he won't he

going back to comedy quite yet. he did say this was a decision that didn't just happen overnight. have a listen. >> you make it some i kiam dead. >> what -- it sound like i am dead. >> when did you realize you wouldn't be with us any longer? dick: i said, summer will be the end of my time with the company. the board asked me to do this in the fall of 2010. it's time to start thinking about what the succession plan looks like. caroline: many were wondering why they put this in the public domain that he was stepping aside and looking for a bit of

-- for a new chief executive. if they started looking for a new ceo we would find out about it. they couldn't do it behind closed doors. there is also a key conference going on for the gaming industry. what has come out of that? caroline: e3. this is in adelaide all the gamers are going to be there. there is not any hardware at the moment. everyone is a getting a taste of all the games. there has been such an array of news going into this around the gaming stratosphere. you had an interesting move a youtube and google suddenly getting into a new application. youtube gaming the way you watch other people play. you watch a football game, how they are scoring and killing aliens. it is voyeurism in a new way.

i would have thought that was strange, but we have had tv programs about watching television. >> that is strange. there is also oculus. virtual reality is set to dominate. they have been showing off the morpheus headset. we talked to the games maker. they are not seeing virtual reality coming that quickly. >> we are actively looking at our core franchises and trying to establish what is the best way to emerge in virtual reality. i don't expect you are going to see something profound in the next few months.

anna: you have been doing pretty strange things in the course of your reporting. caroline: i have to say i went to -- it was called the europas. i didn't think i had to wear jumpers. maybe i would have had to. they had robots. they had drugs. they had virtual reality. one they had was a horse. a firebreathing horse. how else would you be making a statement? they also have virtual reality. they have drones. it was a slick event. i managed to speak to some of the startups. i managed to grab tom ballentine. i want to know is the threat of a grexit -- how is that

affecting technology. he was a little bit concerned. as i don't think at a macroeconomic level it would cause much change. if it suddenly came up polish developer, that would affected a lot. caroline: he is worried about the ability to hire. it will make things less efficient. the big winner of the night had to be the really great app developed to get you around town in london. they were the main one to win on the investment front. anna: thank you caroline, who will never be without her riding boots on the way to work. it is 7:39 here in london.

it looks like equity markets are going to open up positively this morning but just buy a little bit. you are looking at a live shot of the city of london. just 20 minutes to go until european equities start trading. we will take a short break on the program and see you on the other side. ♪

smashing the. notanna: hurricane of one to get a ladybug tattoo that looks the actual size of the ladybug and looks like a real one. but i don't normally like tattoos. welcome back. christine lagarde is due to speak in brussels. this comes a day after alexis tsipras said the imf bears responsibility for the situation in the country. lawmakers in hong kong have begun their debate on possible elections for the chief executive in 2017. the china backed proposal a list

of results from the candidates in beijing. the u.s. federal reserve is due to release its latest review of the biggest economy. investors will focus on the fed's quarterly economic projections. they will be watched closely for clues on the direction of policy. european equity markets will start trading and around 16 minutes from now. let's get to our guest. he joins us as head of equities. thanks for coming to talk to us. give us your view of the world. we are talking about some analysis we have done by bloomberg.

none of them have been lowering their estimates as a result of the crisis. investors it seems are not that worried. >> we have a situation where the uncertainty about what happens in greece and people start to say how it will impact the economy. effectively the markets are saying the contagion will be minimal and equity markets are doing ok. anna: we talked to mauritz kraemer, and he talked about how things would be different. he went into detail about the protection to stop the contagion from happening. if you believe contagion won't happen, how strong can european equities be? rory: i think there will be a sentiment hit if there is a major event.

i think there will be an equity hit. i think you could see a re-gain in the year. anna: when do we start to see european equities picking up? it has been lagging. >> we have had slow growth. we are seeing q1 earnings came through. revenues beat expectations. we would anticipate that would continue going through into the second half of this year. there is a confidence issue that is a bit unknown with the greek situation. this contagion confidence could be a risk in terms of how people react. does it reverberate to other markets?

that could be an issue. we are reasonably comfortable the economic impact will be limited. >> are you making a decision about how week the euro b comes or stays? does that go into your expectations for profitability? a weak euro can have an impact on profitability. >> yes, this story has been around a long time. a lot of this is priced in. >> where are you looking? where do you like to invest your money at the moment? we have seen improvements in credit expansion across the eurozone and the banking sector returning to form a little bit. you like some of the banks. rory: the banks are quite an area for us. the capital issues have been a big feature that are pretty much

resolved. we expect to continue building capital. we feel the cash return could be something like 6%. anna: what are you expecting the fed to do for the remainder of the year? the key being the press conference and looking at the forecast. it seems to be how many rate hikes we are going to see this year, how far into the future they are going to be pushed by greece. are they keeping in line? >> the expectations are 50% in september. in my mind if there is confidence contagion i don't think they will increase rates if there is too much negative

sentiment in the markets. >> does it make sense? investors start to think if everyone is worried about greece the fed might not hike rates so we go higher. rory: we have seen u.s. interest rates rise three times. markets have followed. if you push interest rates going up a bit further out, there is less negativity in the market. anna: your focus is on european equities see her. how do you see europe compared to other regions? the buy and seems to be one many investors are playing for a little while. you seem to think they have further to go because profitability hasn't recovered. what about other regions? rory: i think europe is very

well position. i think there is a profitability differentiation that is so significant and if you put europe in normal levels of profitability the market is 11 times 2016 earnings. it does make the european market quite compelling. japan is doing well. emerging markets strengthen the dollar. there is a pocket of uncertainty around brazil and russia. anna: thank you for joining us. rory eatmon, schroeder's head of equities. -- murray bateman. -- rory bateman. marcus, we heard some fiery language from alexis tsipras yesterday. give us the details. what kind of message was he trying to give?

>> it is a public iteration that the greek government has gone as far as it can go. here are the outlines of what we will agree to. we are standing firm. we believe the policies of the last few years have been a catastrophic mistake. he is accusing the imf of having criminal responsibility. he is saying they are not going to go further. most people overwhelmingly agree the last few years policy has been handled very well. most people also want greece to stay in the euro. we have seen greece will accept whatever is on the table for the sake of preventing accidents. anna: what is happening in

athens. just over eight minutes until equity markets start trading. jonathan with a look at trading. it was a funny morning. jonathan: it was. equities were negative for the first couple hours. then they turned positive. the nervousness has been taking place in the bond market. the december 2011 hi came back a little bit as well. all of a sudden everybody is a little bit calmer and futures are higher. anna: there is an expectation. greece is in a crisis situation. but hey, the fed has got power back. jonathan: i find it fascinating would guard in three different ways. tsipras and her response to him. then you have her message to yellen.

if i am a traders sitting in london and i have got to stay late i just spoke to one of my friends who has to stay late. he has to watch two screens. anna: i am sure we will provide some functionality. we have had lots of fascinating conversations about tsipras and the latest on greece for all kinds of asset classes. really fascinating comments about the euro and whether the crisis really means a weaker euro. if it means people take less risky bets, perhaps it means a stronger euro. jonathan: the action you see hasn't been in the spot price but in the volatility space. as we move forward, what stuck out for me was the same thing that stuck out for you. analysts are 100% bullish. the likes of citigroup 17%.

what they all have in common is they all think the stoxx 600 is going to rise from here. not a single analyst picks it will fall. >> it's amazing. the athens stock market stands out as an outlier. they are trading weaker compared to others. we just spoke to schroders. rory bateman was saying the same thing. if you believe in a recovering volatility story, he was saying that along with what we are hearing about the fed could make things higher. jonathan: when we get the good data, we think that is good. often it is not. bonds are correlated with equities. the point the correlation breaks down. good news equals good news.

i don't think we are there yet. anna: john will be back at the top of the hour with "on the move." it looks like equities will open just a fraction higher. european equities look to be just a little bit higher. they will be really picking up on where they were yesterday. we saw strong performances in the u.s. session as investors thought, we have the greek crisis rumbling on, but perhaps that means the u.s. fed doesn't deliver that as soon as markets expect it. we will see what the fed has to say today. plenty to keep everybody busy. i will see you tomorrow. ♪

jonathan: good morning, and welcome. we are just moments from the start of european trading. lagarde takes the stand after tsipras accused the european monetary fund of criminal responsibility. the imf chief speaks in brussels today. we look ahead to janet yellen's news conference at 7:30 u.k. time as officials continue to lay the groundwork for the first rate hike of 2006. japan's slowdown. exports rose the slowest rate since august. sluggishness in china weighs on

demand. futures markets are a little bit higher. dax futures up by 33 points. at this point yesterday it was futures lower and spreads higher. are we going to get another one today? caroline hyde is in london to bring you the european market open. seven has a wrapup. caroline let's kick it off to you. caroline: the gloves are off when it comes to suppress. -- two separate -- to tsipris. merkel is keeping her cool resolutely, saying greece will remain in the euro. we are seeing the ftse higher by a 10th of percent.