francin leaders are planning a summit monday. thousands take to the streets of athens urging the government to reach a deal. the latest from the greek capital. prime minister tsipras will meet president putin at the st. petersburg economic forum. with rival twitter set to be ready to launch its first marketing campaign, we will hear from facebook's emea head.

welcome to "the pulse" live from london. i am francine lacqua. greece seems to be edging towards a debt default and possible exit from the euro after a lesson term -- a luxembourg meeting ended in at running. >> given the limited time, let's say we reach an agreement, it is unthinkable the implantation is also implantation and disbursement would take place before the end of the month. that is unthinkable. >> we are dangerously close to a state of the mind that accepts an exit. i urge my colleagues not to fall prey to the state of mind. >> we can only arrive at a resolution if there is a dialogue. for the moment, we are short of the dialogue. so the key emergency in my view is to restore a dialogue with adults in the room. francine: the european central

bank is said to be planning an emergency call to discuss greece 's liquidity. the greek prime minister tsipras will meet vladimir putin. hans nichols joins us from luxembourg. hans let's kick it off with you. why did the talks collapse? hans: because both sides were so far apart, not only on process and the actual policy of it but what would actually happen to get something on the table to discuss in the euro group mee ting? mr. varoufakis proposed ideas. they walked back. no one was willing to talk about them. that antagonized mr. varoufakis. the creditors are digging in saying if they want credible proposal --s and figure out the math to see if greece can fund

itself, it gets to talk of not being able to fund themselves and pay off the imf loan. there is a lot of talk of default. mr. varoufakis is open or seems to be willing to accept that is around the corner, although he is saying it only happened from an accident. this morning from george osborne we heard about the importance for planning on the day after. george osborne: we hope for the best, but we must be prepared for the worst, and in the united kingdom we have taken measures to increase our economic security so we can deal with risks from abroad. clearly we must go on and complete that plan. hans: on monday we have the e.u. leaders summit. before that finance ministers would need to do a lot of technical work. the clock is doing against them. it will be difficult to disperse

the science. mr. -- disperse those funds. mr. tsipras says a high-level meeting us what he wanted and now they can negotiate the endgame. no one and luxembourg agrees. they think it is too late. francine: thank you so much for that. ryan the main act is putin addressing business leaders. thre e greek prime minister is in town stealing the show. what is he up to? ryan: first off the russian president is going to be speaking shortly. one thing we heard from his performance -- his former finance minister is this idea of moving up presidential elections to next year. if that happens, it means when those election take place, the russian president would have been in power for 16 years. it would hand him power for another six. 22 years of vladimir putin. also, we have had the european

union move against russian assets state assets in europe. maybe we hear what the russian president thinks about possibly freezing the assets of western businesses. he will talk to charlie rose on stage. we are going to bring all of that live to you, but more than that, we will hear from the greek prime minister, who will be addressing business leaders here. so far, he has been cool as a cucmumber. he has said absolutely nothing probably about the idea of getting a deal. will he use that speech to speak to the creditors and investors? it's the dynamic duo. the president of russia and the leader of greece, the two most talked about men in europe, both of them speaking live. we cover it here on bloomberg television. francine: thank you so much. now, while the standoff between

creditors and greek officials continues, thousands of people have rallied outside in athens to urge the government to reach a deal. tom mackenzie is on the ground. what is the mood like? tom: i have just been out this morning talking to people standing outside banks and atm's and there is a definite sense of anxiety amongst people an uncertainty about what the future holds or what the next coming weeks will mean for them. but there is not panic. there is no bank run. a couple people told me that they were concerned, but they are keeping the money in the bank. safer than hiding it at home. we know, though there have been record withdraws from lenders. last night's rally, we should say this was quite a sectarian crowd mostly andti-

government. there were 7000 people there. they said they were angry, angry at the way the government has postured with their european colleagues and creditors. angry at what this means for the for trail of greece. one protester said that the government's grandstanding had poisoned relations with greece. that greece was left isolated. everyone we spoke to said they were taking money out of banks and storing it in home in contrast people i spoke to this morn. i was tonight, there was a pro-government really. there supporters to the streets saying that they wanted the government to hold their ground, no concessions. people telling me that things could not get worse than they are with tax hikes and pension cuts, 44%. some people not even getting paid for months at a time. how much worse can it get? but i think there has been. a

mood shift in the last three days and greeks who once held a glimmer of hope that a deal could be struck now see that there is a very real possibility that -- of a greek exit, and that anxiety is palpably there, but there is no panic yet. people are glued to the news. it is all they talk about. all taxi drivers talk about. and there y're pinning their hopes on some positivity from the emergency summit on monday. francine: thank you so much. now of course, that brings us to today's twitter question. we were referring to the comments from christine lagarde. the adult in the room. who is it? mr. tsipras or mr. varoufakis? hans nichols is on the ground and luxembourg. for more on this, we are joined

by a former imf board member. great to have you on the program. do you think this is boisterous talk or do you think this is nearing the end that we will see a default in the next couple weeks and a greek exit? guest: mr. tsipras issued a dovish statement this morning, so it looks like he hopes that there would be an agreement on monday at the extraordinary e.u. summit that has been called specifically to address the greek issue. hopefully, this lengthy negotiation will come to an end. he's in a difficult position because he overplayed his hand believing that the europeans need greece as much as greece needs europe, which is not the case. so he firmly believes and perhaps he still does that greece is a systemic case and

that creditors will blink and give him what he wants for fear of contagion. hopefully things will be resolved this coming monday. also because there have been very large deposit withdrawals from greek banks. if an agreement did not appear to be in the cards. francine: miranda, do we need a referendum in greece? would that solve the issue. we saw this demonstrations pro staying in europe. and 85% approval rating to have austerity members and now had is gone down to 65%. miranda: yes, a vast majority of greek people want the country to remain in the in euro area even if it means more sacrifices. and really the differences are not that large between the two sides. creditors are asking for small

but growing primary surplus targets which the greek side has accepted, but they have not come up with measures that will achieve those targets. so, hopefully the government is preparing to table some proposals at monday's e.u. summi t in order to bridge the gap between the two negotiating positions. francine: do you think this government will survive? miranda: sorry, can you repeat the question? francine: do you think this government in power mr. varoufakis mr. tsipras, will survive either way? miranda: it is very difficult to tell because he does not completely control his party. there is the risk that if he brings a deal to parliament, he might lose his majority. he has a majority of only 12

mp's. and if the hardliners within his party vote against the deal, then that will spell the end of his government. francine: give me a sense of what people are thinking on the ground, when you look at banks. it seems we are concerned about outflows. we have that comment from the ecb saying that we do not know if the banks will be there on monday. how concerned are you that we'd see a bank run or capital controls? miranda: deposit withdrawals accelerated strongly this past two days. i understand the outflow reached close to one billion just yesterday. and if the council, governing board member, warned that yesterday's eurogroup meeting

that greek banks might have to remained close on monday ahead of the eu summit monday evening. if there is no deal reached at the summit, then i'm quite sure that banks will not reopen until capital controls are imposed. because that would spell the end of the negotiations and the ecb is waiting to get its cue from the leaders. if the leaders decide that greece is a lost cause and there will be no agreement, then the immediate next step would be for the ecb to pull the plug on greek banks. and then on june 30, greece will be unable to meet a 1.5 billion payment to the imf, which would be the beginning of a slippery slope toward grexit. francine: pretty strong words

there from you. thank you so much for joining us. you are absolutely right. we do not know where this is going, but it looks like we are inching towards a negative event. now, on monday morning, we have a special program on the greek crisis at 10:00 a.m. london time. right here on bloomberg tv. here's a look at what else is on our radar this friday. the shanghai composite has fallen 6.4% today, ending its worst weekly decline since the financial crisis. chinese shares are retreating from a seven-year high amid speculation that gains have been to rapid. the bank of japan has maintained its stimulus levels. the central bank will continue to expand the monetary base at a pace of $650 billion that is 60 spur inflation. sluggish export growth is the latest risk to japan's economic recovery.

police have arrested a 21-year-old man after nine people were killed in a mass shooting at a church in south carolina. he has been identified as dylann roof. investigators are treating the shooting as a hate crime. president obama says it is time for america to ask questions about racial tensions and access to. government president obama: at some point, we as a country will have to reckon with the fact that this type of mass violence to not happen in other advanced countries. it doesn't happen in other places with this kind of frequency. and it is in our power to do something about it. francine: voters in denmark have ousted the government. the anti-immigration danish people's party has emerged as the biggest force with 20% of the vote. twitter is working on a market

campaign to shut the public the benefits of using the service. according to people with knowledge of the matter, it is the first major campaign by the social network to promote its own products. twitter is developing a feature called project lightning. that will organize content around live events. now coming up, we are talking to the chairman of one of russia's biggest dealmakers. live from the st. petersburg international economic forum. keep it here. we are on "the pulse." ♪

francine: welcome back to "the pulse" live on bloomberg tv and radio and streaming on bloomberg.com and your phone. today marks the final day of london technology week. who better to have spoken with about technology than the most powerful british woman in technology. that's facebook head of middle east -- i mean emea europe middle east, and africa. coarlaroline, you met her. caroline: i did. it is an amazing building. you go in and immediately there is graffiti and all of the walls. you're able to write and embrace the space tyheyhey have.

they have strawberries covered in chocolate, they have this sweet bar the slick coffeehouse. they even have masseurs there. you're able to play computer games. and it is an exciting place to be. francine: do they do any work? caroline: they do. it was lively when we were there. it seemed to be their lunchtime. overall, this is a woman that is passionate about her business. she is coming up to two years having been there. it has changed markedly because when she first started, they had facebook growing the advertising. she's also, than they recently bought what's up. where then is the vision for this company? >> the bettering the

targeting on facebook. the scene to our clients, how we can improve on those. we are only just getting going. we'll be looking to extend that out later this year and next. yes, you'r re right, the other services we have our blue sky. as we move more into the medium-term, looking at things like messenger. we shared some of the ways that we will build a platform out. so other people can build on that. i do not even know what that is going to mean, but when i look back on what facebook meant. interesting things happen. new businesses emerged. i think that is really, really exciting. caroline: i came away with mobile and video media my ear. they now have 3 billion videos watched every single day. she thinks the

it undermines the climate. the russian reforms and continues the liberalization of

russia. ryan: another hypothetical. there is a lot of talk with the fifa scandal, could russia lose the world cup, not on the pitch but the opportunity to host the world cup in 2018. if that was to happen, a business question. what would that mean for the steel industry. i know a lot of steel goes into construction. what would it mean for infrastructure? this would mean a rallying thing. not a game changer, but for a contracting area. with that not be helpful? >> seocondly, i do not think any large projects of this type and scale will significantly impact the future in our country appeared of course, it is a good -- wei don't think the contributions to consumption is critical. ryan: you have a network of $14 billion.

you just paid yourself a $1 billion dividend. some of that will pay down debt. it as it also because you're looking to start another business venture? alexey mordashov: we have different investments. we contemplate the ability to build new -- it could be a good opportunity for potential. they remain active. ryan: you sell steel to europe. how concerned are you about a grexit? alexey mordashov: well, first of all, our domestic business is much more important than export. secondly, we cddon't concentrate our export sales to any specific market because -- but what is important to the

customer. i don't know. i hope that a deal is done somehow. and i hope the scale of the program is such that the european union and greece could manage it at the end of the day, regardless of o utcome. i hope there is enough good deal qualification to find a way in w hich we'll of course not completely avoid turmoil, but in the long-term -- have a position in greece. ryan: thank you very much for your time. that was the chairman of severstal talking about a whole much of subjects, including the possibility, which he does not believe, of an early presidential election in this country. francine: they do so much. ryan chilcote joining us from st. petersburg. coming up later, you can watch

charlie in conversation with vladimir putin. at 1:00 p.m. u.k. time. before that, ryan chilcote will present a special program from the st. petersburg economic forum on 11:00 a.m. u.k. time. the bank of japan has maintained its record monetary stimulus levels. the central bank will continue to expand the monetary base at a pace of $650 billion as it seeks to spur inflation. sluggish export growth is the latest risk to japan's economic recovery. u.s. police have arrested a 21-year-old man after nine people were killed in a mass shooting at a church in south carolina. he has been identified as dylann roof. investigators are treating the shooting as a hate crime. president obama says it is time for america to ask russians about racial tensions and access to guns. greece seems to be edging toward the exit from the euro after a

meeting with creditors to reach a deal on its bailout package ended in acrimony. the european central bank is said to be planning an emergency call today to discuss liquidity and the -- the greek prime minister tsipras visits vladimir putin amid increasing isolation. let's have a quick check on the markets, because we have been hearing a lot of strong words not only from christine lagarde asking to start negotiating with adults in the room. she asked where the adults where. but also we have been hearing down the comments, the act or money, a lot of fatigue, tension between creditors and greece. this is the picture for euro -dollar. the ecb planning to hold an emergency session of its governing council friday. this is to discuss the deterioration of greek banks. the impact on euro-dollar is i would say contained.

it is unclear. when you speak to market participants whether a possible greek default, even followed by an an exit would be euro-negative for positive. we have been asking a lot of guests and it seems that 60% think it will be a euro negative in the short-term, but other save it may be a positive as we expect more q.e. let's look at the other markets impacted by this. german bunds the ones to watch out for. its spreads have been widening. this is after we're concerned about the greek aid talks. and we heard from the eurogroup president saying that the way goes now, or the way they are going in is t direction ofhe a greek exit from the euro. so that's having an impact on bond yields. let's have a look little bit at the banks. these are the ones we have been talking about after we had a

comment from an ecb officials saying he is concerned that if we do not have some kind of agreement or very big progress on monday, the greek banks may not open. priraeus bank gaining 1.8%. we should show you a weekly chart because piraseeus lost in the lawtst five days. this is the picture for the shanghai composite. we have been talking about china over the last couple weeks. it actually closed at 6.4% lower in today's trading session. we have been talking about the fact that it looks like it is in a bubble but a lot of investor saying they are not sure when the bubble would burst. overall, the china benchmark stock index, what you're looking out on screen, the shanghai composite is down 13% from this year'speak. there is more concern that the country's bull market has

propelled valuations to unsustainable levels. which is why we are seeing a big correction. it gained 20% over six months. now designer was once known as the for such a -- the versace of greece, until he became one of the most high-profile figures and attack crackdown. jailed for 15 months and hit with a 17 million euro bill. he says he has become a scapegoat for a government desperate to show it takes tax evasion seriously. >> this is something from one of my biggest shows. it's almost or the next. they are elegant not me believe me. of course you have to pay the taxes. the crisis took away a lot of the client. how can you afford to pay

anything? of course i did not get the money and they know that. i'm greek. here is. another show i think i was a victim of the new earra of greece going so bad. . everything was clear. they knew my issues, they knew everything. 10 times they catch omn the street the police, to bring me to court. then they brought me to jail. what do they gain? i don't understanding of the only way to pay is with my properties, which they are very well known and very organized. they are more than 250 millions and they are dead there. i'm 63 years old. i tried to hold myself in good shape just to give image to

other people, to encourage them to go on. people get awake wake up and see what is the future of greece . everybody knows that greece goes worse and worse every day. this is one of the most -- the most commercial area of athens, which is supposed to be like one of the best shopping places. now almost everything is closed. i keep fighting because i think that i always been in my life a winner, not in easy situations and this is another difficult one i will come out champion. francine: they go. the versace of greece. on monday, we will have a special program on the greek crisis. right here on bloomberg tv. up next, why switch watch

exports have suffered their biggest monthly drop in five years. ♪

francine: welcome back to "the pulse" live from bloomberg's lighted headquarters.

become back to the st. petersburg international economic forum with ryan chilcote. ryan: i am joined by the chairman of cp worl -- dp world attending the st. petersburg international economic forum for the third time. and joins me to talk about how this one compares to the other ones. last year was a shock. everyone was walking around in a trance, because we just had the sanctions. what do you make of the mood here at the forum? go>> good. there are more people this year than last are. we met many of our clients here. people we do business with. a lot of people are attending. ryan: more people. that surprises me. anecdotally, they feel like a civil are coming from where? >> uae, saudi arabia a litltetle

chinese companies. naturally china is close to russia on the borders. russia is a place where there are recent -- where there are resources. china needs resources. ryan: very upbeat considering that the geopolitical backdrop the oil price a little bit surprising. >> oil price in many industrialized countries is good business. cheaper. most industrial countries are happier. ryan: how does this compare to davos? >> davos is in my opinion became more of a political place, because you see a lot of heads of state. they visit. and they paralyzed the city and close the roads. this was not difficult. in davos, you would be standing for 20 minutes. the weather at that time is

freezing in davos. so, we used to have -- i see it more of heads of state coming to come planet -- to explain. ryan: networking aside, are you interested in expanding your business or returning to russia? you had a minority stake in a company. would you like to get back in? >> definitely. ryan: even though the economy is set to contract by 4% this quarter? >> our business was 50 to 99 ye ars. you cannot look at a year of operation. we look long-term. long-term, we believe with the -- silk route plan of china.

china is building a huge city next to kazakstan. by sea, it is taking 42 days. by rail with china is promoting the silk route it will take 12 days. and signed an agreement with the kazaks. so, we see the product coming. ryan: where do you see her biggest growth in the world? >> biggest growth is still africa, emerging markets, and latin america. ryan: and your outlook for the second half of the year? >> we expect 4% growth. we usually lead that. are at 7% or 8%. i expect the next six months will be similar to what -- 4% growth. ryan: where are you going to

make your next big investment? >> we are looking at where our customers go. where our customers go, we will go. an increase the traffic from china going to through canada to the united states. we approach -- the ruble. we are investing there. we are just awaiting the finalization. ryan: you and i were talking and you said that you saw a lot of chinese here. one thing i've noticed if we have seen less americans in particular over the last couple years since sanctions and pressures on u.s. business. even less europeans. do you think the sections are creating a bit of an opportunity for businesses outside of the european union and the united states here in russia? >> we look at the business, not just the -- but the outlook. if we expect cargo to be there

and we expect our customer to be in a location, we will be there. blooded rostock -- vladifvostock k is very interesting. we miss being there. ryan: thank you very much for your time. it was a pleasure speaking with you. you are in a good mood this one. the chairman of dp world. i will pass it back to you in london. francine: at the st. petersburg economic forum in russia. more top headlines. police in japan have arrested toyota's chief communications officer on suspicion of a drug-related offense. they are investigating whether he imported a pain medication which is classified as a narcotic in japan. a spokesman says that they are confident that she had no intention of breaking the law. swiss watch exports have

suffered their biggest monthly drop in five years. the introduction of the apple watch weighed on delivery. shipments slid 9% the steepest decline since november 2009. pope francis has called for an urgent and drastic cut in fossil fuel emissions. the pope made the plea in a 181 page letter to bishops known as an in cyclical. -- encyclical. let's talk cybercrime. the so-called shylock virus was first attested in 2011 and left -- led to a police investigation that smashed the operation lester. those behind it are still at large. >> they have the ability to play

dead, and give the impression they have been deleted from a computer. it was hiding somewhere else to reappear later. another aspect of shylcok ock it had lines of shakespeare buried in. it would intercept itself into your communications with the bank. bid we do that to divert money out of the pound. malware was stealing millions of pounds every year from the british banking sector. the idea behind the operation was to destroy the tools criminals were using to steal from banks. criminals did not like what police were doing. they were making millions of pounds of year. they fall back. -- fought back. they built a new website. police worked night and day to take down websites. eventually, they got the upper hand. the operation was a success largely destroying shylock.

it is a coins in it that they use england's greatest playwright. cyber criminals can make so much money that they will not stop. most think this gange will show up again. francine: shakespeare quoting criminals. you can read more about this fascinating story and a special article on the bloomberg website. bloomberg.com/europe. check it up. forget supersize, mcdonald's is shrinking. we explain why. ♪

francine: welcome back to "the pulse" live on bloomberg tv and radio and streaming on your tablet and phone on bloomberg.com. here are some of bloomberg's top stories. the british trader charged over his role in the 2010 flash crash cites mental health issues to fight extradition. lawyers may also argue that u.s. prosecutors potentially misleading statements that he contributed to the crash would prevent them from getting a fair trial. now, the personal assets of convicted -- peter made off are being optioned online. they include jewelry, and works of art. madoff is serving 10 years.

the burger chain that put supersize into american slang is slimming down. for the first time in 40 years, mcdonald's says the number of u.s. restaurants is has -- it has is shrinking. it plans to close more outlets than it opened in america this year. greeks are pulling her cash out of banks as country edges closer to a possible eurozone exit. where they putting their cash? one pensioner showed tom mackenzie her secret 65,000 euro stash. >> i want to keep a part of my money. here are money also. here are money, also. after crisis, i took my pension

in 2011 and now for security, i keep my money at home. here are the rest. every day i went to the bank and i took 1000 euro. i keep it in my bedroom. not only my bedroom in three bedrooms, in different places and 65,000 -- i ahave 65,000 euro s. i worked for the justice department for 28 years. i used to have a good salary, but about 2000 euro but in the crisis it was cut to 1000. many people are doing the same thing right now because we do not know what will happen.

many europeans think that there are truckloads of money coming to greece to pay wages and pensions but it is not true. actually it was to pay the swiss, germans defense bankers. life before crisis, i spent money on shoes. but life now i think is more simple and maybe i'm uncertain for the future, but i feel more close to real needs. francine: that's some great reporting from tom mackenzie. for our viewers, second hour of "the pulse" is coming up. we go back to st. petersburg. ryan chilcote will talk to the megaphone ceo. we will also talk to the micex e ceo.

it'll be interesting to see what he gets out of these t exclusivewo. greec e and russia just assigned a gas pipeline. tsipras is meeting with putin later on. we havee there will be a conversation between charlie rose and the russian president later on. we have a full hour of special programming. this is also the picture for the markets. so, when we come back for our viewers, we will talk about greece the impact on the markets, whether we have a greece exit, whether that means that is euro-positive or negative. at the moment you see 1.1309. the ecb is having a special meeting to talk about liquidity and talk about the bank situation. another piece of marketing we have to talk about is china. the shanghai tumbled 13% from this year's peak. there is more concern that the bull market has propelled

evaluations which is unsustainable. we will talk about that and much more on "the pulse" next. ♪

francine: on the edge of an exit . the ecb will hold an unscheduled meeting on greece today. euro area leaders are planning something extraordinary monday. thousands take to the streets of athens, urging the government to reach a deal. we have the latest from the greek capital. the primus or will need finer put in at the st. petersburg -- the prime minister will meet vladimir putin at the st. petersburg international economic forum later. and we hear from facebook's cma head. ♪

good morning to our viewers in europe and great evening to those in asia and welcome to those waking up in the united states. i am francine lacqua. three seems to be heading towards a possible exit to its the euro after a meeting to end it to be a package and in acrimony. >> let's say we do reach an agreement it is unthinkable the implementation -- and disbursement would take place before the end of the month. that is unthinkable. >> we are dangerously close to a state of mind that accepts an exit. i urge my colleagues not to fall prey to the state of mind. >> we can only arrive to a resolution if there's a dialogue. we are short of the dialogue at the moment. the key emergency is to restore

a dialogue adults in the room. francine: the european central bank is set to have an emergency meeting about this. alexis tsipras will meet with the vladimir putin amidst increasing -- increasing isolation from its peers. hans nichols is in st. petersburg. why did the talks collapse? hans: the two sides are not only so far apart on substance but also protocol. how to proposals would be presented to the euro area leaders. what we have is a lot of negativity from pretty much every finance minister heading in. george osborne said earlier you have to start making contingency plans. >> we hope for the best but we now must be prepared for the worst. in the united kingdom, we have

taken steps to increase our economic security so we can deal with risks like this from abroad. clearly we must complete that play now -- plan now. hans: we heard from the president of france and he said that he will likely speak with angela merkel before the summit. they will do everything they can to keep greece in the eurozone. we heard from the slovakian premier. he says they want to keep greece and the european union but not at any cost. there is clearly a cost to be paid and that could be the discussion that takes place in the coming days. if you take the president of the eurogroup at his word, the dutch finance minister, he says he disbursement of eight is close to impossible by june 30. you over the accu overlay that with christine lagarde's comment that there will not be a grace period it is clear that greece

will not pay the imf. it is up to the euro finance ministers and the heads of state to figure out some sort of gymnastics to keep greece in the eurozone. we do not know what that could be. there is not a lot of optimism that could happen. and we have a potential banking crisis brewing. the ecb will discuss whether or not to have an emergency increase of emergency liquidity assistance. francine: ryan, the main act in st. petersburg is putin addressing this. ryan: the russian president take the stage in about two hours. he will make a speech and have a q&a with charlie rose. former finance minister of the

russian government floated the idea yesterday that this country should move up presidential elections to the end of next year. president putin has been in power 15 years. if the election is moved, he would be in power for 22. charlie asks the president things about that. the european union has moved to potentially sees some russian government assets in western europe. would russia consider freezing the assets of russian companies in this country, and another interesting question for the russian president. he has been cool as a cucumber since he got the same petersburg, that is the image he is projecting. i saw him, out of a hotel, he was all smiles. he said nothing about the

country's spat with creditors. he will use that as an opportunity to address business leaders and creditors and investors who are a little more concerned than his cool nature suggests he is. they could be a dynamic duo. two of the most talked about men in europe. the prime minister of greece and the president of russia. they will both speak and we won't listen to their speeches and charlie rose's q&a live on air. i will have a special show leading up to their speeches in the hour. francine: thank you. we look forward to that russian special 55 minutes from now. while the standoff between creditors and greek officials continues, thousands have rallied outside parliament building in athens to urge the government to reach a deal.

tom mackenzie is on the ground in athens. what is the mood like? tom: it is a normal day in athens, but there is a definite sense of anxiety amongst people. i have been chatting to people as they wait outside banks and atms. they are anxious about what the next few days will have in store for greece but there is no panic yet. the people i spoke to outside banks say they were going about their normal transactions, but there have been record withdrawals rum household and families. a pro-euro rally in central athens yesterday, there were about 7000 people there. there is a different crowd now. largely antigovernment. yesterday it people were saying that it is time for tsipras and

varoufakis to step down. there was a mood of anger and fear, anger over how greece has handled its negotiations with creditors. one protester told us then that is that this had been grandstanding on the european stage and poisoned relationships with europe and that greece was not isolated. a lot of people expressing that concern. they want to be part of nations. the rally last night was in contrast to one wednesday night, a smaller one around 4000 with pro-government supporters. they started -- they said we stand by their focus and they want to hold their ground. people they are saying that things cannot get worse than they are. that is the perception of those who have seen punches -- pensions and wages cut. people working but not getting paid. it now seems there is is

paradoxical view among most greeks. they want to stay in the euro but they support plans to adjust creditors plans and ease back on reforms and less austerity. the mood now seems to be shifting in the last few days. greece wants had a glimmer of hope that a deal could be struck with less austerity but the 7.2 billion euros that greece needs, but now they see a need that -- it possible that greece could exit the euro and that is something people are paying attention to hour by hour. this is the main topic of conversation around athens in the restaurants and cafes. everyone keeping their eye closely fixed on developments particularly monday as to what happens. also, what happens at the european leaders summit. people hoping there will be some positivity out of monday's meeting.

francine: thank you. monday morning, we will have a special program on the greek crisis and the future of the country at 10:00 london time. joining us to talk more about greece and what an exit may mean is the senior economist of -- the picture is not pretty at the moment. what are the chances we get a deal on monday? >> getting a deal is relatively far away. there are going into more leaders. it is at the ultimate level of decisions to get something going. but it feels like the two parties are far away. it seems like the most likely outcome is there will be some kind of capital controls because there will not be any deal and you will have to be a buffer period where banks are closed.

francine: wit capital controls actually work? cyprus is a small economy, an island area is there any sense and putting in capital controls or should we wait for a default and then that is automatically cap a cold -- capital controls? >> i think it is good to give the government of greece to come -- to let multi-negotiations come to an agreement. at some point, you can feel that the most logical outcome will be for the greek government to hold a referendum. are you willing to compromise and do what is asked from us from the rest of the euro area. francine: should we place ourselves for a lehman type moment? i have been asking investors and economists whether this is

positive, whether we have a default or capital controls. the markets has seen a lot of volatility. the vix index has had a lot of movement. people are column -- calm. >> it has been ongoing for a long. -- for a long period of time. we had some reversal in the first phase of the european crisis. we know a little about the austerity. we have been there. also it is not as acute as it was and 2012, when we knew it was more likely there was a domino effect. if greece could lead, spain or italy could be the next to fall. in this context, it is less likely you will have some big countries in the euro area to run into problems. that is where it is less of an issue. but it will still be unprecedented for a country from the eurozone to exit. francine: i understand it is

unprecedented and that we have prepared for this, but the day after, if we have capital controls like you said is likely, what do we wake up to? charles: banks be enclosed in greece and no one can get their money out, completely. so if you get your money -- if you do not get your money out of greek banks now, you'll not be able to touch it at that point. francine: is a concern that it will filter through spain, is as a political concern? or is there some kind of rich loan -- bridge loan? capital controls with a payment to the imf or a payment to the ecb? charles: it is linked to each other. it is more of a concern of which other countries can be -- the uncertainty gets confined to greece at this point.

we know greece is relatively manageable on its own. it is more if you start to see contagion, where investors suddenly shone away from portuguese bonds or irish bonds and suddenly start to feel more concern. then you could have more of an issue of contagion. at this point, it is more unlikely given the current situation. francine: charles st-arnaudfrancine: senior economist at nomura. ryan chilcote is at the st. petersburg international economic forum with a guest. ryan: am joined by the ceo of megaphone. thank you for joining us. you have been the ceo a couple of years now. give me a sense of the climate. when i was here in may last year, i think people were self -- shellshocked. sanctions were introduced people were trying to make sense

of where russia was going. maybe people have adjusted. what is your sense of what is going on now? >> this for him, the st. petersburg for him is one of the best i have been to. it is generally business as usual. people were a little shocked about the situation. not everyone is used to it. the most important issues that no one is discussing the scenario what could happen but everyone is discussing what should we do in order to be in a good situation. for their businesses and countries, the country. ryan: what should russia do, we will hear from the russian in two hours time. one thing you would like him to change is what? ivan: the full concentration on economy, on business, on

business climates and also the segment of small, medium, and big businesses. it should be a top focus of everyone in the government. ryan: it has been about a year sanctions were introduced against russia. you have been running one of the largest phone company operators in the country. how has it affected the business? i know you and the company are not directly sanctioned, but all the same, there are certain restrictions at capital markets which have made some investors nervous. what is the ceo's perspective? ivan: the only way we could feel sanctions is at the capital. we do not see any companies which are not eager to work with us. everyone, international companies.

our investors have seen a downturn since two years ago, but obviously, investors still like of the business of mobile operators and in terms of the situation, we have mobile connections in our industry. our industry is not a big part of consumption. our prices are reasonable. i think people do not necessarily see how they can optimize especially megafon adjusters. we are trying to make it something people can adjust to. ryan: the damage done to your business by sanctions versus the dramatic fall in the oil price we have seen, how does the oil price fall measure to sanctions? ivan: sanctions do not really influence our business.

one we speak about oil price the dollar is almost two times more expensive compared to the ruble. our capital expenditure is more expensive. we charge our customers in rubles and we pay for the way stations in dollars. if there will be a russian parts of our equipment and if there will be more of them, it will be much better for the company. ryan: you delayed or postponed a definite -- a division payment because you're concerned about the ruble weakening. how hard you see it weakening this year -- far do you see it weakening this year? ivan: we are around 53 now. i see a much higher and the horizon. investors should not be worried about dividends. we postponed it for technical reasons in order to sit on cash

and have a good christian, but in the end of the year, we are planning -- and have a good cushion. ryan: your foreign investors would get the dividend in dollars less. is that hypocritical? ivan: we are a rubles company. from 2013 onwards. investors who invest in the russian economy should understand it is a ruble economy. ryan: how do you respond to that? is the idea that you plan on pushing back some projects or cutting costs to deal with the ruble's weakness? ivan: we are concentrated on the customer. we need to offer great service for reasonable money. we should invest into our networks and we are. we have not capped it because we

care about the quality of our networks. we have a strategy of effective growth. it is not as high this year and i do not want to have growth at any cost. shareholders do not do that and do not want that. we are very disciplined. ryan: you have been a russia-focused company for a good while. the largest mobile phone operator has a different strategy diverse right -- diversified around the soviet union. i changing types and thinking about expanding beyond russia? ivan: i think it is better to be concentrated on one country, is one such as large as russia. we do not want to go to other markets because they have their

own issues. currency, political issues. look at what is happening in the ukraine. also the local currency and political situations. we are much more stable here. ryan: when d.c. russia returning to growth -- do you see russia returning to growth? ivan: i really hope next year should be the year when we change the terms. ryan: ivar todd graham, chief executive of megafon, pretty upbeat on the mood at the forum and across the russian economy to turn around, maybe as early as next year. francine: thank you so much. coming up later, you can watch charlie rose in conversation with the russian president at 1:00 p.m. u.k. time. before that, ryan chilcote world

offer a special program from st. petersburg international economic forum at 11:00 u.k. time.

francine: welcome back. here is a look at what some of the main stories on a radar this friday morning.

china shanghai composite has fallen with the worst week since the decline of the local financial crisis. chinese shares are retreating from seven-year highs and speculations that games are too rapid. the bank of japan has retained -- maintained the record monetary levels and the central bank will continue to expand the monetary base at an annual pace as it seeks inflation that vanished last month. exponential growth is linked to japan economic recovery. they have arrested a 21-year-old man after nine people were killed in a mass shooting in south carolina. he has been identified as dylannr roof. they are treating it as a hate crime president obama says it is time to ask questions about racial tensions and access to guns. president obama: at some point, we as a country, will have to reckon with the fact that this type of mass balance does not happen in other countries.

-- of mass violence does not happen in other countries. it does not happen in other places with this kind of frequency. and it is in our power to do something about it. francine: voters in denmark cap ousted the government of prime minister schmidt, the and and they have merged with 20% of the vote. they have argued for border patrol to define the free movement of labor. twitter is working on a marketing campaign to show the public the benefits of using its service according to people with knowledge of the matter. it's the first major campaign by the network to promote its own product. twitter is developing a new feature called project lightning that will organize content around live events. a reminder that you can follow me on twitter. when we come back, we are talking about facebook and we will also have a recap on

markets and greece. keep it right here on bloomberg tv. ♪

francine: welcome back. we are seeing a live pictures in st. petersburg. we will hear from him shortly. he is up there today. this is a russian born hero. there are live pictures and he is receiving some of the limelight we were thinking vladimir putin was going to have. our very own charlie rose will be speaking with vladimir putin in about an hour and half and we have a special show from the st. petersburg economic forum. you can see the prime minister alexis tsipras seems to be in a jovial mood actually as he is meeting greek nationals living in russia. mr. tsipras saying a deal can be done on the greek crisis.

we note that the european central bank is meeting a little bit later on to discuss liquidity or we know they are discussing the situation in greek and on greek banks. mr. tsipras saying he is confident the deal on this country can be reached at this emergency summit of european leaders on monday. you can see he is not getting any greek questions. we are looking at live pictures from st. petersburg. my greek is very limited but i think these are greek nationals living in russia asking him and giving him messages of support. there is also a child that he was greeting just a couple minutes ago. we are expecting him to lay that wreath for the greek-russian hero. that is coming up shortly. this is a little bit of welcome relief for mr. tsipras. we know that the negotiations

have been going pretty badly over the last couple of days. just yesterday in luxembourg, she said she wants to negotiate with an adult in the room. whether that means she wants mr. tsipras instead of their coffers or she wants in new people that is our twitter question of the day. we also heard from the commissioner and he says that every day counts in talks with grace and every hour counts. he is also saying that the responsibility of the european creditors is to prepare for every scenario that european authorities need to prepare for all outcomes. we have spoken to him many times on this program. he was the french finance minister until one and half years ago. this form is surprising what we just heard from him because he has always been very optimistic the currency is such a politician and even in his role as european commission for economic affairs, he has been almost too optimistic.

investors have said he is trying to spin it forward and says he never talked about a plan b he never said we should even consider greece thinking of defaulting on capital control. for him to come back and say that european authorities need to prepare for all outcomes, yes, these talks are not going well and what a lot of guests have been saying, if we do not have some kind of agreement on monday, then we will seek controls come up evening. we are just looking at a scrap and it is known in this lingo. mr. tsipras being there and greeted by a lot of people in st. petersburg. he will meet the russian president later on and a reminder today that we heard from the energy ministers of greece and russia. they will find a new quote for gas pipelines. tsipras esther -- mr. tsipras getting support from russia and not getting from european markets.

let's check in on the markets. john. john: we are up on periphery in spain and italy. 1% as well on germany's benchmark. not missing out on the rally in london either of .8 of 1%. pretty much a raising so far this week for the equity benchmark. the story over the week for greek start -- greek stocks ugly. down about 11%. the week really challenging the story. the big differences in 2011-2012, we had a meeting like yesterday on greek finances and we opened up in blanket green and yields lower, not really. but then again, it is not 2011-2012. for basis point to 0.77%. an example of that different world, the open of the bond market today at 7:00 a.m. u.k. time -- spread started to come wide or and then they came all the way back in again with fields down about five basis points to two point 24%.

we get these same echoes of contagion that go through the bond market and it fills in a little bit like a couple of years ago and then it is the act that develops with pension coming back up. it is not 2011. it is not 2012 but you get reflection of it sometimes. you want to see euro weakness question might look no farther euro on an nine date losing streak. this is a strong pound. a little bit earlier this week it is the euro that has been battered. without when 25 of 1%, if you switch up the pair as your base currency eight-year-old 14, happy holidays for a lot of you out there, including myself. that is europe take it to asia there is your headline. the shank i -- the shanghai, said down over 6% on the session. the worst week with the worst five days of trading since 2008 for the shanghai composted and your headline for the asian equity market for the shanghai copper said is specifically down

10% from that peak. that equity hits an obstacle and some air comes out of what some people would call a bubble and we are in convection territory. francine: thank you. jonathan with the markets. today is the final day of london tech week where the capital has played host to hundreds of events to celebrate growth in the sector. who better to have spoken with about turned and technology then one of the powerful british women in technology -- caroline did that interview and she spoke to her at length. caroline: we went around offices at hq in europe for london and amazing offices. you can ride on the walls with graffiti, you can have a drip brew coffee if you want. the place is slick. they have their own sweet shop or he can get chocolate dipped strawberries should you like. there was a peaceful element playing chess but videogame arcades.

there was everything. we did then sit down talk business, talk priorities because she is always two years in the business now on facebook. two years at the head of europe. how have things changed question mark they have since bought oculus -- how it things changed? they have since bought oculus but priorities are still facebook, still instagram and they had 3 billion videos they watch today on facebook. how do you cash that it would -- cash that them with clients? isn't it unnerving? she said no, they want to focus on the individual and help his misses grow and help the women in nairobi you are building the clothing business and then moving to a mall. she actually really wanted to share about how this has been helped by facebook. >> i think with the shift to mobile and the shift to digital it it is almost like a revolution because it is changing our lives. we think about changing the

impact with behavior to bring digital and was a long way to go for a lot of different companies. what i'm really interested in as well is the start of businesses being created in this region and how we can help platforms to build and grow and monetize going forward. caroline: can you give an example of smaller businesses -- once that you have really seen grown and do some great things using the platform? nicola: i think it is small and big businesses. if you look in germany with the rocket businesses and they have become one of the biggest thing utilizing the internet all over the world or in france, or the candy crush game. these businesses were started very small but now they are a significant size business. one of the things that is exciting is that they are only a handful of years old. caroline: facebook gets a lot of flak for invading our privacy of little too much and being too targeted but they do help build other businesses and are creating a platform and people

feel that is what they do best. build platforms. u.k. and europe are trying to build businesses such as forte for example. they got these posters everywhere is what they want to set out to do. they are not afraid to push the bar little bit too far and then be reined in but they've got to do it. francine: when you were looking at it, you can see some of the load was behind her. rate stuff. talk to us on twitter because there was news on twitter today and a big advertising push. caroline: there is a big push. almost offensive in fact. we will be working on marketing campaigns and talk about how they explain their services. amid the ceo search, amid criticism that people who use twitter's are celebrities are politicians but they want the public to know that they are a social media platform for everyone and they want to be able to get advertising money and by doing live events.

by having organized content around live events, say a tv show, and therefore, helping people use twitter who may not have an account. advertising is an interesting scene because we are about to head into the big celebration of creativity. people find over to france as of next week. if you look at what nicola mendelson has been looking back at facebook again, they are looking very closely at the advertising trends they are seeing. i spoke to nicola a little bit about the move to digital and how people are embracing mobile. she says mobile is like breathing and blinking. it is intuitive now. this is what the best appetizers are using for facebook francine. >> we are seeing more and more agencies, more and more clients putting advertising on mobile. the reason they are doing that is because they are becoming more mobile centric because that is where people are spending time. if you think about it, you probably put your phone via a bed and it is the last thing you do before you go to bed.

check your phone again and it is with you all the way through the day. probably more than people's partners. it is right by them. we've got this amazing personal device that is with us all the time. caroline: maybe more than your partner. what a sad life we live in. it is too. francine: it depends on if you are messaging your partner on your device. thank you so much, caroline. coming up we are speaking live from st. petersburg's economic forum. keep it right here. we are live on "the post." -- "the polls." this is mr. tsipras talking to locals. i understand these are actually greek nationals living in russia. he is about to be -- to lay a wreath for a russian greek born hero.

she wants to start negotiating with adults in the room so she was saying either mr. tsipras nor varafoukis were adults in the room. in the emergency meeting does not go gray, then what happens next, a lot of people bracing themselves. we also heard from the commissioner who is the eternal optimist or the internal politician and always trying to spin everything in a positive way. last 10 minutes, he said european authorities need to prepare for all outcomes. it is a word of warning. we are back and a couple of minutes and we will bring you more like pictures of mr. tsipras who is also missing the russian president mr. weidmann are proven later today. -- mr. vladimir putin later today. ♪

francine: welcome back to "the pulse" live from london on bloomberg tv. let's go to the st. petersburg economic forum. >> thank you, francine. i am joined by the chief executive of the moscow exchange. thank you for joining us, alexander. he is here at the st. petersburg form not for the first time. we were here one year ago and i should also disclose to viewers that every time we have an interview, hunting absolutely outrageous happens. you were almost decapitated by a falling light during one of our

interviews. but it is always worth the risk isn't it? alexander: it is. >> maybe it is not because they are handing out the salmon sandwiches behind the, but the atmosphere this year seems to be upbeat. is that your takeaway? alexander: no. i would say different maybe. much more business man and like from the foreign literalist. i'll also a lot of people from the global investment banks and another point is that people are very interested in talking about the forum. this is very important to me. >> you talked to a lot of western investors ahead of the moscow exchange. what did they ask you about? what did they want to know? alexander: the most interesting point is the upcoming that has

to deal with the current economy situation in russia because it is an a unique explanation -- situation. global products for global trading and it is not just the markets in development. many people are considering that this international investment from the russian market but that is not the case. moscow is a part of the global trading platform. this global grading platform is treated with openness and transparency and protection of rights. we have done locally a lot of reforms to improve the protection of the business rights. we have done a lot of other for international and bureaucratic. it opens the markets. [indiscernible] the share of the international account of the monetary account

and it could -- an international equity trading increases from 32% up to 40 -- 46% and the same with this market from 32% up to 44%. >> when you look at the volume of equity trading versus on trading, they have definitely fallen. why is that? alexander: the equity trading in 2014 was in bond trading at fixed income for the first five months of the previous year. the markets are one of the reason but the main reason is my point of view, the result of the reports of the russians influence on structure. the local and national investors are doing more opportunities provided by the end of the day. >> the central bank credit trying to smooth out some of the volatility we have seen in the ruble which has been extraordinary.

do you think they are doing a good job of it? i guess we should save the interest of fair disclosure, they are one of your biggest investors. what do they need to do to make it even smoother? alexander: well, the volatility is also resulting from the very high market share is today of the moscow exchange because moscow exchange has a unique as this model that is diversified and they can find other platforms. one is typical for the exchange. our market share is almost 50% compared to the other part of the market because of our protection. i believe it is to provide also for markets participating and interested in the exchange stock on -- and even for the private parts in russia because there was 0% precipitation -- precipitation -- participation.

[indiscernible] investors seem to have been woken up in europe and i can tell you the same about fixed income. previous share in trading for the retail customers in russia used to be quite small 1.52% 1.5 years ago and now it is always about 7%. >> you are in a unique position in the sense that you benefit from volatility which is decreasing of it. how do you see that affecting your financials? alexander: the main advantage is we are taking from are really unique business model which is greatly diverse of five. because of the changing politics and interest of our particular products, the rest of the year it will be quite interesting

possibilities and opportunities especially in fixed income and a money market meaning they have a tremendous market share in the money market and deals because it is protected from the risk point of view compared to -- >> we will have to leave it there. you are for joining us. the chief executive of the moscow exchange. he was pretty upbeat on his business and what is going on in russia overall with foreign investors. he said, still in the game. back to you, francine. francine: thank you. ryan chilcote is there from that st. petersburg economic exchange with alexander afanasyev. coming up, we will look ahead to monday in brussels. stay with us. ♪

francine: come back to "the plu ulse" on bloomberg tv. we are joined by not -- we are joined in greece? moscow, too? >> probably a little bit of both. we are looking today to see what happens on this conference call at the ecb when they will discuss how much to raise emergency liquidity assistance by. there is pressure on the banks after all these meetings in

luxembourg and they have gone south. one important note on this francine, mr. berkoff is -- he has denied the leaks that came out of that meeting suggesting the capital controls where being discussed and it is an indication to just how badly things have gone. you have talking about leaks and you might have an agreement or something closer to an agreement when adults are in the room. this is not going well on a political level, on a policy level, and it certainly is not going well on a personal level. francine: it certainly is not. this is our twitter question of the day because hans nichols came up with it so thank you. you can treat me or hans nichols. good you think the adult in the room is? is the adult mr. tsipras? is it yanis? you can tweet us -- #thepulse.

of course, it is all on monday. capital controls is something we understand that they are not being this gust and we will have to continue on top of these various rumors and various headlines. thank you. a wrap up, we will show our best interviews of the week. check out our new show "best of bloomberg" and it is this week and we will have top producer st. petersburg international economic forum. that is on bloomberg tv and bloomberg.com this weekend at 12:00 16:00 and 21:30. stay tuned for ryan chilcote live at the st. petersburg life economic forum and we have a live russia special and later on in about 1.5 hours from now charlie rose will be talking to mr. putin himself. what will be his first question? if it were me, i would ask him about the possibility of using

nuclear. you can follow us on twitter. we will see you shortly. ♪

tsipras -- tom: greek stairs into the unknown. the ecb and eu leaders called emergency leaders. bloomberg television will have complete coverage and on subdued global gdp global -- does

global recession mean the fed must wait until 2016? good morning, this is bloomberg "surveillance" and we are live. it is friday, june 19. i am tom keene and joining me is brandon. the ecb, brendan, meets with in the minutes within -- brendan: the most important meeting happening right now is a teleconference that the ecb is called the but they really need to figure out to they continue to extend emergency liquidity assistance to grace? -- to grace? two grrece? if they pull that plug, there is no telling what happens. tom: who initiated capital controls on iceland or maybe now greece? brendan: