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.

volatility is going to be in the air. it's interesting to notice when you are looking at the stock market, check out the forward-looking desires of analysts. none of the 15 we tracked have changed their outlook. stocks in europe will gain until the end of the year. clearly the stock market is not being too concerned about the greek debt debacle as it continues. june 30 is when the bailout comes to an and. they need to reach an agreement before that expiry. there is also the fed decision. meanwhile, the fx market remains pretty flat. we are going to look at the dollar reaction. 7:00 p.m. is when we get the rate decision.

all eyes are on those little dots. keep an i on the u.s. -- an eye on the u.s. will they react? i remind you of the manufacturing data we got showing it is not where it should be in the u.s. today a little bit of a breathing space, a bit of a really for after we saw a debt selloff yesterday. greek borrowing costs coming down. that means bond prices are going higher. spain is similar. this is the first time since 2012 we have seen contagion start to rear its ugly head. spain and italy have seen borrowing costs up. today we see them higher.

the u.s. is basically flat on the treasury. jonathan: the ftse 100 of about a 10th of 1%. let's get to asia and deb for a wrapup of the asian session. zeb: stocks here, what an interesting session. we had declines of 5.4%. a two-day decline, but we reversed that. look at this. shanghai composite and up 1.7%. we are seeing shares moving. they have been a leader through the session. shanghai composite, 1.7%. rebounding from this today

slump. banks and utilities are driving the market. let's take a look at hong kong. cathay pacific airwaves doing well despite pilots pledging to continue their work. galaxy entertainment is not such a bad performer. some of the oil producers are down today. this is not a big decline. investors, even with their concerns about the pace of this rally in the chinese market they are doing some buying at the end of the day. finally this is what we saw in terms of the industry groups. this was the asia. the only groups declining consumer goods. our best performers are oil and gas and financials.

we look up collectively. more rising than falling. these are the ones you want to look to. the indonesian banks, the malaysian banks. at least one chinese name. we will be optimistic to finish the trading day. jonathan: good for you. greece talks tough. the imf says criminal responsibility for the situation in his country. no signs of compromise emerge. meanwhile, angela merkel spoke about the need of bailout terms. chancellor merkel: this is about greece conducting reforms. this is not about financing gap. it is about the point i listed in 2014 and whether there is sufficient progress set by the

institutions. >> hans nichols in berlin. i want to start with you. our real ramping up of the rhetoric in greece. this was for a domestic audience. i asked who it was really for. was it for them or for the imf. hans: i think it was for both sides. it was also for the traders. prime minister tsipras is joining the economic summit. he will meet president putin on friday. it is part of a plan. is it something greece really had in mind in making stronger relationships with russia? that remains to be seen. it is the fact that greece finances talking about

responsibility talking about a 68 thing -- a 68 thing -- asphyxiating the economy. in athens we are going to have to protests. one is pro-government and asks for the end of austerity, the restoring of greek dignity, and so forth. the other is a pro-european one. we have to make it clear. there is a rumor that circulated in the greek media. that was greece not paying by the end of the month should we not have a deal by then. prime minister tsipras asked for a debt relief to be concluded in the bailout program.

something the imf stands for but something the european union does not want to consider and less greece goes for it with serious reforms. if greece doesn't a the imf at the end of the month, it's not a clear default. -- doesn't pay the imf at the end of the month, it's not a clear default. will the ecb see that as a reason to put harsh restrictions ? that would mean capital controls. jonathan: just to bring you in you hear it tsipras say the ecb is a 68 -- asphyxiating the greek economy. >> solvency appears to be the keyword.

as long as greek banks are solvent, that is what they look for. you heard from the duck -- that central banker. until the moment there is a default it is business as usual. no one doubts the ecb has to walk a tightrope. if they do anything to constrict liquidity to greek banks, that could precipitate capital control. jpmorgan was out with a note that if there isn't a deal on thursday, it is likely you are going to have capital controls over the weekend. no one is really expecting a deal on thursday and luxembourg. the expectations have been dampened. i guess what i am looking for in terms of how much emergency assistance has increased is the number. that is usually a good indication of how much outflow comes out of the greek banks. do they impose any additional

requirements? they have hinted at that. the problem is if they impose haircuts on collateral, that could have a negative effect. i am not sure if the ecb wants to be seen as an approximate cause for a liquidity crisis. jonathan: thank you for joining us. let's bring in robin marshall. we give a special birthday welcome to the investment director. i blame the fed. i blame lagarde for speaking later and your partners for making you work today, but it's going to be busy. today we get to hear lagarde's response. it is pretty harsh criticism of the imf. how do they deal with it? >> it is unfair. the imf is playing a subsidiary role.

it is way beyond the normal quotas. it is twisted to abide by whatever the ecb is coming up with. there should be no blame allocated to the imf at all. it comes to negotiations with the ecb. i think in terms of getting a resolution it is clear the lines need to be kept open. we are talking about capital reforms that need to happen the next few years or later. jonathan: the two questions we try to answer every day is what breaks the deadlock and what forces the issue. the ecb faces a reputational risk when it comes to providing for greek banks. are we at that point? >> i think the ecb won't want

the responsibility of being seen as the institution that causes a graccident. i think they will be prepared to keep the system afloat. it is important to remember there are other sources of funds that could be taxed. there was money earmarked for the greek banks. there are profits for the s&p program. there are all other sources of funds, which i think will get tapped at some point. further down the road, the ecb may build a bid. it is going to hinge on the ecb because otherwise the banking system is insolvent. we will come to that at some stage, but i think there is enough money to get through these deadlines.

the difficulty is with a bargaining strategy tsipras is using, which is clearly brinkmanship and going as close as possible to these deadlines that he doesn't have enough time. there are a number of dangers with this. there is enough money clearly to pay off the imf for june, the one and a half billion. >> why do they bundle them up then? >> that is part of the strategy. he has a domestic audience to play two as well and he doesn't want to be seen caving into the creditors. the imf should never have been into this deal. it is clear this is not a suitable case for the imf to be involved with. they should never have been involved in this deal. they may come out of it. jonathan: dare i say there was a little equity of 2011 and 2012.

we saw stocks pick up. contagion risk. we are starting to see a little bit of that. to say we are not seeing any market impact would be disingenuous. >> we should expect a lot more volatility. the important thing to remember is that ecb qe is pretty large. that is a good stabilizing force. >> do you think the ecb gets tactical at this point? do you think the bond buying becomes tactical? >> they are going to accelerate the buying program. it provides stability to the marketplace. i think you have more volatility, but there is nothing to be deeply worried about.

qe is big enough. jonathan: just to go forward. the last question for you both. 100% bullish. that is what analysts are. the spread, it is wide from about 4% on the stock. you see that with a target of 400. and then it is for 50. for you guys, is it upside? no downside that if you sit here and stomach it we will make a profit? >> i think there is plenty of downside. if greece leaves the eurozone or not, it still has to be dealt with. the baking system is going to be a major problem. there has to be a resolution mechanism for that.

the good news is we have had five years to prepare for this i don't think there is any alternative. i think they will be gone in the medium-term from the eurozone, but there will have to be parachute payments for them to stay within the eu. the bad news is we still don't have a resolution for the banking system and the euro becomes a series of currency pegs if they leave. that is something to address. it is no longer secure. jonathan: we have to leave it there. coming up, prepping for the latest statement. will janet yellen have anything to say? we will bring you an update on how markets are reacting. for the latest developments, the

economic forum kicks off tomorrow. we are live in russia with a preview. a beautiful day in london town. good morning to you all. ♪

qwest good morning. we are about 20 minutes from the open in europe. the dax already coming off session highs. stoxx 600 is higher, trading at

386 points, but the amount of upside still left in the index according to analysts, plenty of upside. we are looking at citigroup calling for the stoxx 600 to go to 450. despite the fact the fed could spike in september and despite the fact nobody knows what is going to happen with greece. it could be a chalky year ahead, but analysts are bullish. japanese exports rose less than forecast for the month of may. overseas shipments climbed at the slowest pace since last year. rupert is stepping down as chief executive officer at 21st century fox. the 84-year-old billionaire will remain as executive chairman. a new report has found walmart

owns more than $76 billion in assets in offshore tax havens none of which are mentioned in security filings. of course, it is fed day. investors will be looking for any clues on the timing for that first rate hike since 2006. we will get the statement. 30 minutes later, janet yellen will speak. she may face questions about christine lagarde over the opinion about whether the fed should hike rates. >> we are seeing there is a case on waiting until there are tangible signs of wage or price inflation than are currently evident.

in other words, we believe a rate hike would be better off in early 2016. jonathan: still with us robin marshall. not the first time we have heard lagarde comment on the fed, that offering time contingent. >> i think it is a question of if the u.s. interest is not sooner rather than later. it means the impact on the emerging market is going to be quite severe. it is going to catch a lot of volatility, and that is going to put it low. we had very noisy data coming out of the u.s. with the bad

weather and the stronger dollar having a big impact. it has picked up a little, but it is still a low level. if the fed is going to be data driven, the data will not indicate the fed rises there. >> which is one reason they are still off the hike from september. if you have dollar denominated debt, you don't want a stronger dollar, but americans don't want a stronger dollar going forward either. there has been a lot of noise over the last few weeks. do you think she has to deal with it again? >> she will keep her options open. this is a difficult position she is in. if they are worried the market is not expecting enough and they try to talk them off a little bit -- talked them up a little bit, that could cause more volatility. it would make it less necessary

for them to move. if she downplays it too much they may feel conditions are loose. the fed staffers have an estimate for longer-term equilibrium unemployment being sub 5%. unemployment are 10% plus. they have got plenty of room. i don't see any reason as to why they would want to move quickly. jonathan: the focus has shifted away from the first height. it is still extremely shallow. are we all over it? could we absorb the hike and get on with our lives? tax we could, but once the hike is on the table -- >> we could but once the hike is on the

table, the u.s. dollar will start tightening. it is estimated with every 10% increase it is roughly equal to 80 or 90 basis points in the region. it is a significant tightening that comes from the u.s. dollar strengthening. the growth rate is going to be from a lower trajectory. robin: the other thing i would throw into this is the technical issue about how easy it will be to raise rates. the market presumes they can mop up excess reserves. there is a colossal volume in the system now. you can argue it is criminal for funds minus five. to get to plus a half or 1% is a big move. technically it may be tougher.

we kind of assume because we are used to things being pegged you can move it. i don't think they will tighten this year. i have doubts about how strong this recovery is. we have been through this for five consecutive years, and they have not recovered. jonathan: the big word is volatility and europe is higher. the point is the right place as we progress through the year? >> i think so. if you think about how volatility is coming down, it is down to lower levels, and i think we are going to have that kind of spike coming down. i think all of those volatility rises are an opportunity to open up a new position. jonathan: happy birthday. thank you for joining us. we will talk tech.

we have been speaking to the outgoing ceo. we will break down the big moves after the break. we are back in two minutes. ♪

♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes

footage all of taylor swift's music videos interviews, and more. xfinity is the destination for all things taylor swift. jonathan: good morning and welcome back to "on the move." we are 30 minutes into your trading session this wednesday morning. this is how the market is shaping up. the 5100 pretty much flat. we are into negative territory this morning. switch up the board and we will check out the fx market. we are higher with the stronger euro. euro sterling coming off of a six-day losing streak.

dollar yen is a touch below 100.4 -- 124. alexis tsipras says that the ims has criminal responsibility for his country. imf chief is due to speak in brussels later today. the u.s. federal reserve will release its latest policy statement along with orderly economic projections. policy makers expected to hold interest rates near zero until september. janet yellen's press conference begins at 7:30 u.k. time. imports fell 8.7%.

let's talk tech one of the most influential women in technology set down with bloomberg to discuss her his nose yahoo! area -- yahoo!. >> -- caroline: everyone is assessed with the alibaba stake. they are doing complex financial maneuvering. they are trying to sell off their stake by being tax efficient area -- efficient. they are hopefully able to offload it with no tax. suddenly be tax agency comes into the u.s. and hence it could be changing the rules. have a listen.

>> become located changes do not apply to previously received requests for grilling. we filed for it well in advance. caroline: basically they have had the wink from the agency saying, we are not going to go from already agreed disposals. it looks like that $40 billion will get to the shareholders. jonathan: dick costolo said to get excited. that excited -- that excitement is located quickly. caroline: the cofounder of twitter will not ride to the rescue in any way. there is the potential of twitter being bought, maybe google buying it.

brad stone, reporter from businessweek set down with dick costolo, had a candid discussion. dick costolo used to be a standup comic. he gave us a flavor, why? wide apart -- why depart? >> we want to do a full search for the right leader. if we try to do that in secret the moment you talk to a couple of candidates will be out there. that would be a distraction. we want to do it in the open. caroline: basically journalists are too good in the valley. jonathan: here i am at 7:00 in the morning, looking at my bloomberg terminal, waiting for the bond market to open, icbc pictures caroline hyde on a

mechanical horse breeding fire -- breathing fire. caroline: they wanted to make a splash. how else? i know, let's get a robot that is a horse that breeds fire -- breathe this -- breathes fire. it was a great event. it was about shining a light on succeeding startups in the u.k. and europe. i got to chat up one of the entrepreneurs, a drone company, all about britain. >> being in london is great. there is a lot of money, a lot of access to money.

there is an ecosystem we can step into. it really helps us. caroline: i think sky futures is a company to keep an eye out for. they are building drones to help oil recs -- riggs and identify problems. last night in the awards, all about city matters. jonathan: caroline hyde, thank you. coming up where next for russian properties? stay with us to talk with one of russia's leading property developers. ♪

jonathan: good morning and welcome back. this is "on the move." let's get you up to speed on where markets are trading. we opened in the green, and rolled into the red. the 5100 down by one point this morning. the asc higher by 1.3% after the biggest three-day selloff since january. the asc lost 14.6%.

greek stocks have taken a beating. let's lift the lid on some of the indices. caroline: i am focusing on what is winning. top of the charts berkley group. it is at a record high of almost 8%. the reason, the numbers, four-year earnings of 42%. they say the support -- they support the u.k. remaining in europe. they are speaking out against the grexit. they have a clear majority from the conservative party. you have the london mayoral elections and the risk from the

u.k. exiting europe, they say we should stay in europe. they say that is the best way to london to remain a world city. remy cointreau, trading up almost 7%. and this is a company hit by some of the trading changes in china, they look to be slightly recovering. therefore year operating profit beat expectations. the dividend is good as well. they see growth for the next year. telecom italia up 3%. the speculation is we could be seeing the french company vivendi upping its stake to 10-15%.

we're about to see vivendi take an eight percent stake in telecom italia, they will be purchasing that but they could be ramping that of more. back to you, john. jonathan: what a year. caroline talking about winners. if you bought that last year you are winning. let's get to russia. the st. petersburg international forum kicks off tomorrow. ryan chilcote is live. ryan, over to you. ryan: like you said, we are one day away from that economic moment. we are looking inside russia's housing market right now. you run one of the biggest housing groups in the country 4.5 thousand employees.

we're always talking about how tough the economic situation is in russia what are you seeing with sales right now, versus one year ago when this mess began? >> sales have decreased. it is affected by the situation. on the residential real estate parts of market, it is important to take into account that residential is less affected by this market. this is an internal market. ryan: when you say decrease what percentage? >> 30% more or less in sales. the demand is still here. people have postponed their decision to buy an apartment. the residential demand in russia

is huge. this is an attractive part of the business. it is still attractive and we have big potential. ryan: the demand of sales and houses in london dropped by 30% -- if the demand of sales in london for houses dropped by 30% -- if you put it into dollars what are you seeing in terms of sales of prices? anton: it is internal. the prices have not increased dramatically. the interest rate has increased. but the price is with -- in line with inflation. it is attractive to people who

receive their salaries and ripples -- rubles. we are seeing the postponing of the buying of the apartments, it is temporary. ryan: when will it come back? anton: there is huge demand. people with children still need a place to live. i cannot imagine a situation where the demand will decrease. ryan: what created this drop in sales of 30%? is that the ruble, sanctions, economic climate? anton: mrs. an expectation of people about the current moment because they enter a long-term deal when they sign the agreement on buying the apartment. it is important to know what

happens tomorrow in the day after, that is why they are waiting. it is a normal situation, this adjustment, to the new a level of interest rates and exchange. i think that the adjustment is now in place. we will see steadily the sales going up. ryan: the bank of russia dropped the key rate to 11.5%. that is a pretty high interest rate, is that keeping people away? anton: the most important thing is trend. the trend is on the good direction. if you compare it to the previous levels of interest rates, which were announced in december sorry in january and february, it is the decreased --

it is a decrease in interest rate. the second point is the level in inflation is quite flat. we have at some moments, a negative interest rate. it is still attractive to entering the mortgage rate deals. ryan: you have not mentioned the word sanctions. are those the problem here in russia? anton: i cannot answer for russia. i can answer for this company and the segment of the residential business. for us, the most important thing is a good relationship and good decisions for the future. we're working on the long-term. it is like growing a baby, a lot of things happen. everything will be ok. that is why people are waiting a

little bit. i believe everything will be fine. ryan: i'm guessing you think you are share prices are plummeting? anton: i don't think -- the quality of company is not reflected in the price of share. that is why we are presenting the company to investors to explain how it works. in order to get people to understand everything is good. ryan: what do think that is? russian premium? is it people misunderstand the geopolitical risk? do they -- do they misunderstand your business? anton: it is not one word.

there are a number of parameters. your name is a temporary thing, you don't have to explain to your partner who you are. ryan: give me the forecast for the ruble, where will it be at the end of 2015? anton: better than now. ryan: one of the biggest real estate companies, pretty bullish saying the demand is there, and they will come back. he thinks they will improve in sales next year. jonathan: thank you very much for joining us morning. this friday you can watch russian president putting -- at

the st. petersburg economic forum. we will bring you the coverage of the events from noon. we need to talk about a move in the fx market. the smb removes a cap, another move lower, the stronger swiss franc by .69%. they replied in a word greece -- grief. a stronger swiss franc all head of a smb decision, the decision gets harder. they may have to follow the government and do it again tomorrow morning. if they do that, they might not be able to match it with a change in their policy starts. the rates are already negative.

one word, greece. what to watch today? what has happened so far? and what is to come? we'll discuss that and more after the break. ♪

jonathan: good morning, and welcome back to "on the move." that is almost it for the show. let's check in on the bond markets.

the volatility in the sovereign debt market has picked up. yields on the periphery lower. spreads were blowing out yesterday, then they came all the way back in. let's talk about it. all opinions are his own. here we are, high volatility. portfolio managers have gone to a traders. what is the strategy? >> we have gone from distribution that has increased rates of expected inflation, coupled with greek saga in the headlines. effectively they have gone back to 2012 levels. yesterday appeared -- last year was a low volatility.

day trading is virtually impossible. as we saw yields compress, that was the no-brainer trade. as soon as volatility spikes, you have great managers saying cut decisions, which is a strong signal telling you, now you have cut your positions, you have cash. jonathan: the chart i can pull up has hurts it's more expensive than cause. that green circle, 2012, that is big demand for bonds. is that what is happening right now? >> absolutely. in bonds hit 1% of the yield if you felt that yields would go back down, you have the greece

risk and the issue of german paper, you would've made three times your money. that is where tactical trading comes in. jonathan: you look at the options market for bonds and you see: is getting more expensive. >> we have gone back to 80 basis points on the bonds, the demand has come back in. jonathan: great to have you on the show this morning. i will tell you what else we will be watching. we have a reading for the u.k. labor market. we have eurozone inflation at 7:00 it is the fed statement. that is it for "on the move,"

"the polls" is next. good luck for the rest of your day. ♪

francine: tsipras rips into the international monetary fund accusing it of criminal responsibility. rates under review. will the greek -- play into the federal reserve decision? we'll -- will the numbers give us any clue as to when the bank might raise rates from their all time low? so, welcome to "the pulse"