>> it is time for a substantial position with low risk tied to growth. a year ago -- [indiscernible] >> a final push. they give him until tomorrow night to satisfy creditors and end the standoff. mixed signals as the chinese stocks extend in the slump since 2008 -- the 2000 a crisis. a year of deals.

2015 is on track to be a record breaker for m&a. the u.k. gaming group confirmed merger talks with a rival. welcome to the program. you are watching countdown. i am anna edwards. there is plenty to talk about. there is a lot to update you with the greek story. let's start with the currency market. this is a picture of the euro dollar over the last three days. you can see the last few hours and it has been some promise from goldman sachs on where we should focus our attention. despite the greek story, goldman sachs says they are focused on the differentials between what the ecb is doing and what the

federal reserve is doing with their move on interest rates or the anticipated move on interest rates. goldman sachs sees the euro heading for parity with the dollar. we have been expecting to see the strongest second-quarter since the first quarter -- the strongest quarter since the first quarter of 2011. let's bring you up to speed with what is happening on the greek story. the prime minister has been given until the end of tomorrow to find solidity. yesterday, we saw hope and optimism infiltrating and around the european stock markets. you can see the european stoxx 600 up and having the biggest gain since may a. -- may 8. the athens stock exchange was up and the banking sector is

getting a good mix of that. we have some of the athens banking stocks up. the stock markets picked up and ran with it in a positive direction. the markets edging a little bit higher and the s&p was close to a record in yesterday's session. we will talk all of this with john at 10:30. he warned of volatility and trading in 2015. three minutes past and let's talk about the asian market and the things to factor in. there is plenty in the asian agenda. the asian stocks rose following a rally. they have a deal that could be reached soon.

david ingles as the complicated picture to paint for us. david ingles: it is good to see you. you can see it is a good day. asia is doing that part to extend the global rally and we have seen the benchmarks. we are back at levels that are raising. if you will, there is actually a strange flight to safety. you can see the developing markets doing quite well in southeast asia sees a bit of pressure at this point. the main place is blue chips. i will give you japan and the big exporting names and retail makers. look at the index and the consumer electronics. it is the mining stocks that are doing well today. japan put together the best

three day run so far. you see the 700-800 points clear of where they closed. it has been a good run here for the japanese stocks. the shanghai composite and hsbc sees a little bit of improvement. you have to put the longer term view on this. look back 3-4 years and the final number actually, it has been stuck in that range. 49-50. not much of an improvement. the shanghai composite has had a volatile session, to say the least. they had a drought last week and extended the losses. we are down 16%, if you include the 13% drop last week. this one, to put this into context, that one is a 6% swing. it becomes interesting in the afternoon sessions.

i will be watching this for you. it is at 4390 right now and close to entering a bear market. we are about 260-270 points away from the bear market. you would not be crazy if you think we are in need their market in the next few days. >> interesting. david inglis joined us from hong kong. -- ingles joined us from hong kong. that is the question today. should it be the pmi data or the central bank reaction? should it be rules surrounding margins and the sustainability of the rally and the extent in which china and asia will be accepted into the global fold.

it is six minutes past 6:00. the european leaders have given the government until wednesday to make the final push needed to satisfy the creditors and end the standoff that has threatened to split the euro. let's go over to guy johnson in athens. hans nichols joins us from berlin. what needs to happen in the time that remains the end of tomorrow? guy johnson: detailed discussions will take place with the greeks. they have put forward a proposal that was broadly welcomed by the three main institutions that score the plan. now, we get into the details and the value added tax on process foods and electricity tax. how much will the pension system the changing? it is nitty-gritty detail and

the devil is in the details. the objective is a big one. the next 48 hours could lead to a significant deal for greece with the creditors. the prime minister emerged in the early hours and said, we are not just going for something small. we are looking for a comprehensive agreement. >> the proposal has been accepted as the basis of negotiations by the institutions and they must go for more hours today. it is accompanied by a strong growth package and the country can stand on its own again. >> this is by no means -- this is, by no means, a done deal.

it will be interesting to see just how much they still want to extract from the greeks to sign off on a deal. we have not heard much about the debt reprocessing -- root profiling -- reprofiling. it is about pensions and making sure the vat can be accepted by both sides. anna: if it is a sticking point is it back to pensions and get re-profiling -- debrtt re-profiling? guy johnson: there has been a gear chjaange here and they are taking the proposal seriously, which they have not done in the recent months.

there are sticking points and they are detail sticking points. the broad brush and the micro view of this is that we are making improvements and progress. anna: thank you very much. apologies to hans. the have greeted the proposals a little bit more seriously. -- they have greeted the proposals a little bit more seriously. hans nichols: what we had was mr. stsipiris say the ball was in the european's court. they need to make sure all the proposals add up. in the next 48 hours, it could shift to what the greeks have to offer and you want to narrow the differences before the thursday summit. coming out of the meeting, he

said that time was an enemy. >> i am convinced that we will come to a final agreement. we have to find an agreement this week. we cannot play on a football field with prolongations. hans nichols: the differences seem to be on the gaps and what they need to narrow on. merkel indicated that the talks would be the most illegal. christine lagarde tempered optimism the most. not necessarily negative. she was trying to be clear on the task ahead. >> we have a new proposal that is more comprehensive and includes more details than what we are seeing. it is still short of everything that should be expected and there will be room for

negotiation. hopefully, we will be constructive in a short span of time. hans nichols: this came out of the finance ministry in berlin. berlin it will be unlikely to relieve any aid until there is a vote in the moment of greece. the german parliament will not vote to release any funds. anna: what are holding things up? hans nichols: it is how much you get from the value added tax. the european officials want 0.74%. the greeks have come a long way towards the creditors on the budget surplus. an interview yesterday, they said that greece had moved into line. they will fall into the target per year and it looks like on

the overall numbers, greece has moved towards the creditors. anna: in athens guy johnson and in brussels, hans nichols. let's look at the pmi data. we have the paris time and we will get the numbers from germany at 8:30 in the u.k. at 9:00, u.k. time, we will have the eurozone pmi data to digest. we will digest that information on the manufacturing and services sector. coming up, things are looking sunnier this morning and greece. you are looking at live pictures from the greek capital and the next picture says -- our next guest says that merkel will do

what it takes to keep them in the euro zone.

anna: welcome back. it is 17 minutes past 6:00 and 17 minutes past 7:00, if you are in frankfurt. the bid to keep britain into the eu -- in the eu. they have identified five key areas of reform including a clear and alan's approach to immigration. david cameron is preparing to meet the leaders in brussels. we have seen signs of the slowing in china. the manufacturing index of june has each estimates. it suggests the industry is contracting.

it is easing of monetary policy. the european leaders have given the greek prime minister until tomorrow night to make the final push needed to says fight creditors and end the standoff that threatens to split the eurozone. the government submitted a set of reform measures that began to converge with the terms that were demanded by the creditors. the finance ministers will meet ahead of a summit of leaders on thursday. let's take another look at the greek story from a different angle this time. it is filled with megayachts. the party island is unscathed by the crisis. mckenzie got a look at the other side of the country. ♪ [no audio] ♪

♪ >> we are not greece. ♪ >> it is not greek -- without vacation, it is not greek. >> here, it is different. no crisis. ♪ >> the economy could be better every year, for sure. [indiscernible] we have everything.

it is beginning at 5:00 and finishes at 10:00 or 11:00. a crazy party. >> what is happening in the eurogroup and all of that, it might affect us. it would be affected the least and the last from all of greece. that is definite. anna: mckenzie gets it. let's get more on the political risk perspective. the next guest says that merkel will ultimately compromise on debt relief to keep greece in the eurozone. let's speak to the senior vice president in brussels. it is good to see you. what is your assessment of who has had to blink first and who has had to compromise to get to

the optimistic position we have found ourselves in next week. it seems that the greeks have moved it little bit and you suggest the germans might move on debt relief. >> i think that is next. we are going into tomorrow and the greeks will continue to move on the technical details, when it comes to the roof firms -- the reforms on the ground. the more they do a, the more likely it is that they will ramp up the pressure when the european council reconvenes. they will say, look, we have played ball with your demands and now, it is up to you and it means that we have some sort of language on debt relief otherwise we will not get a thrill of parliament. that is what it will be like on thursday. anna: language on debt relief. what does that mean? does that mean a vague time horizon?

>> the ideas of stepping back and tying the bonds of the ecb, that is only under a third program. we are not there yet. what might be is something involving tweaking it the maturities of the interest rates and the bilateral loans. something like that. potentially, some language to keep an eye on sustainability. there will be intense negotiations and it is essential that the germans move as much as the greeks have been moving. anna: how does merkel send it -- sell it to the german people and the lawmakers? >> it will be interesting. over the last five years, she has been relying on keeping the debate in a technical forum and relying on the eurogroup.

we are nearing a stage where she has to step out with a forceful argument in front of the germans and saying, this is why we are doing this and we need to to maintain the unity of the euro. i think this is what should be done. she has a majority, 188 votes for the coalition. there is a lot of leeway. she has to start taking the tone of the conversation that she has with the german electorate. anna: is the position helped by the fact that the anti-euro, the euro-skeptic party are going through a difficult time right now? >> they are in shatters it right now, if you look at the internal dynamics.

it is probably a good moment in time to have the conversation about greece now. the votes hanging in the coalition. it is a lot, whether or not anp is doing well in the polls. >> what are the repercussions? we have the general elections coming up and does this greek drama play out in a german domestic setting in the politics to come? >> it's certainly well. how well will work all be able to convince her party of the necessity of this? will she be able to do this? how much are they going to come and support this? there is a massive amount of credibility with the democratic

union. the closer to march, that is the first. the closer we get to that, the more tense the conversation comes -- becomes. anna: thank you very much, senior vice president with the look at things as they develop from the journalist perspective. let's look at the pmi data due out later this morning. david powell joins us. it is good to see you. what should we be looking for in the numbers? david powell: the quarterly average. this is the last month of the quarter and, relative to the quarter, it will be higher and the growth in the second quarter is at least as strong as it was in the first quarter and had a reading of 0.4%. anna: what do you think about

the plan the ecb has in place? they have been keen to keep committing to the program and did not want anybody to speculate that they would start to pull back from it early. >> there is no chance of it being curtailed. the growth is improving. if it is not sufficiently strong, that will ultimately be what mario draghi looks at. anna: does it make you nervous? david powell: some officials became complacent about the possibility of a grexit. it is probably the rise in oil prices. anna: thank you very much. david powell.

coming up, the exclusive interview with one of the biggest invoices, as the region is getting aeyed by investors around the world. that conversation when we return.

anna: welcome back. it is half past 7:00 in brussels. the euro dollar is moving. you can see the early hours of the trading day in the comments coming from goldman sachs about how they still think the euro is heading towards parity with the u.s. dollar. they are focused very much on quantitative easing and how that puts the ecb in a different path towards the fed and they see the differential as being one of the things driving the currency markets right now, despite the greek crisis or, maybe, because

of the greek crisis. they continue to do the quantitative easing. that is a thing moving the foreign exchange markets at this hour. i was going to tell you about how the euro was set for the best quarterly performance since 20 oh 11 and we will see how that goes. all of that has been because of optimism coming through and around the greek bailout situation. keep in ion the markets and the purchasing managers index data. we will be getting a reading on the overall picture of the eurozone and the german and french pictures on manufacturing and services. we will get a gauge on the strength of the second quarter from the pmi numbers. let's have a look at some of the stories you need to know. the corporate leaders gathered in new york to pay respects to j.p. morgan chase's ceo who died

unexpectedly. the funeral is held in midtown manhattan. it included barry diller, the general electric ceo, and stephen schwarzman of blackstone. a british maker has been in talks with a smaller competitor about a merger. the new company would rival the u.k. gambling industry's biggest player. harvey keitel is suing e*trade claiming they featured him in a series of television commercials. he was offered a termination fee , instead. let's get more on the top story. donald struck a positive tone after the emergency counsel can

showed signs of commitment towards a deal. >> he has assured us of greece's constructiveity. we can see a solution -- see a full commitment towards finding a solution. let's bring in charles, the head of microstrategy -- macro ostrategy. charles: there has been a seismic shift in operations. to the table. the devils is in the details and that is what we are starting to hear. a lot of work needs to be done and the fine print needs to be worked out. there are major stumbling

blocks ahead. will the parliament approved the deal? will there be a shift in the political temperature of greece. getting this approved is not that straightforward. anna: it is the extent to which they can sell this to the constituency. charles diebel: there have been significant concessions, including sales tax, which were red lines that are to have -- that have been crossed. it remains to be seen what the detail is. there is a reasonable chance that there is a shift in the political landscape of greece towards the left with the coalition parliament not being willing to agree to the

proposals, at this stage. anna: from the german perspective, we had the conversation with a guest from -- about what the germans are prepared to do. will there be debt reduction and a commitment towards something material? or suggestion that something could come in the future if -- charles diebel: it is significant that debt reduction is part of the deal. it is a good play. there is no way the creditors will agree to that, at this point in time. anna: you see that as a redline. charles diebel: really, that is -- it is all about completing the bailout. it makes sense, from the sustainability point of view. it will be part of the third

bailout and not the second bailout. but we are doing is closing off the business that we should already be doing. if there is any debt reduction that is where it should come. anna: how long before we have a break in the conversation? charles diebel: you may get august off. that is about it. it will roll straight and. the problem is that sustainability just is not there. the need for implementation of reforms and everything else they are talking about for greece takes a long time to come through. it is not like the greek economy is on a great footing. there is a thorny issue of debt reduction that will come back and prove difficult to negotiate. anna: we will let them go through august and perhaps start

the conversation again in september. what about the fears of contagion that we have seen around the greek story? they have failed to materialize in any material way, in terms of spikes in yields. charles diebel: you see caution in spread dynamics going into this. you see italian and spanish debt underperforming. nothing like 2000 and 2012. this is a 10th or a 50th the magnitude. there is some cautionary disinvestment. there was nobody looking for a trading opportunity. anna: being generous, is this a success story for the eurozone? look at those crisis. charles diebel: that is true. i think the ecb and things like

that have put a degree of robustness in the system that was not here in the crisis 1.0 . anna: thank you very much. charles diebel: is head of macrostrategy. yesterday marked a historic day in global markets. the dubai stock exchange ceo spoke about linking the markets of the world and said that he is drawing interest from pacific partners. >> china is paying big attention to this part of the world. the middle east and the rest they see the growth and in the

region. it is considered one of the fastest-growing places in the global marketplace. i think it is huge for us. we have not tapped certain areas that are conserved to be part of the capital market activities in the financial activities. >> such as? >> economy initiatives and focusing on some of the new things we will be developing as part of the strategy. >> avenue you mentioned -- have you mentioned china and the slowdown? it is going from exceptionally high to 7%, the lowest in six years. still. >> the growth is slowing down.

you know it in comparison to big economies, it is significant. the idea is to link the economies of the world to the markets of the region. they are growing and would be attractive. it meets the requirements. anna: that was the financial market chairman in to buy -- in dubai. we have been following the market over the last week or so. you can join in the conversation. the stocks are falling in china right now. it is the biggest drop since the global financial crisis, despite the stabilization through the hsbc pmi data. have your say. coming up, the of close look at

the polo in the park. that is for the social elites. we will have more when we return.

♪ anna: welcome back. here are the stories you needed to know. there was a bid to keep -- there will be a bid to keep britain in the eu if there is a deal to help the economy. he wants a clear and balanced approached two mayor gray should. david cameron is prepared to meet the european leaders in brussels on thursday. we have heard the manufacturing is easing desk lowing. they beat estimates, coming in at 49.6, suggesting the industry

is still contracting. european leaders have given the greek prime minister until tomorrow night to make the final push needed to satisfy the creditors and and the standoff that threatens to split the eurozone. -- and end the standoff that threatens to split the eurozone. the area leaders say relief as possible once greece resolves the disputes with the creditors. let's go over to the markets and the german stock market of late. >> i want to start with the dax index. it has actually been a worst performer than the athens stock exchange this quarter. let's drill into it. if you consume into the charter, i will tell you the story. the dax more than tripled from 2009 through the peak that i

have marked right there in april. it was hitting the hardest in the stock selloff. there was uncertainty over greece and it contributed to the dax falling as much as 11% there. some and wes said it could drop to 10,000 right here. yesterday, the german stocks rallied the most since 2012 and now j.p. morgan says it is time to buy the dax again. it is trading low, relative to the broader european markets and jpmorgan predicts it could jump through the end of the year, taking it to a record high. anna: the euro can move the dax around. what is the outlook for the euro? they say we could get parity on the australian dollar.

-- parity on the euro dollar. >> we have seen the weakness on the back of the goldman sachs report where they say it could be sent for its parity. they say that greece is a catalyst and that it could lead to weakness. look at the chart. we have to put this into context this year. it has been one of the worst performers among 10 currencies backed by -- tracked by bloomberg. back to you. anna: a couple of things to watch on the markets. let's get back to charlie. you are not surprised by the weakness we have seen in the market. charles diebel: not really. it was a safe haven and you have to think about the athens stark

market -- stock market, which has been impaired because of the risk with the bailout. if it goes away, the outcome is binary and you see a major repricing. if there is evolution in europe, it is about the mutual's asian a balance sheet. the politicians tell you it is not the case. eventually, that is what it is. it is a slow evolution into a transfer union. they -- the germans effectively bankroll the system. anna: the report talked about a plan for the joints treasury within the eurozone by 2025. is that a symbol of what you are talking about? >> it is moving towards the same thing. ultimately, if there is a major lesson from the greek crisis and

the global financial crisis, the construct of monetary union without fiscal union and interdependency will never work over the long-term. whether it is 2025 or longer -- it could happen soon. who knows? it depends on events. they will create a long-term currency, because it is how things work. you cannot control, youth effectively, both sides of the equation. anna: who knows what comes out of the next crisis. thank you very much charles diebel:. -- attended the polo in the park event to see if polo is a sport for the elite. he spoke with one of africa's wealthiest men, the ceo of shoreline.

>> the argument is that polo is elitist. you probably have to find yourself in a certain situation. in the modern day, certain sports are more accessible and some are saying, "how hard is it to get into polo?" we say, it is cheaper than a round of golf to get a polo lesson. it is about people being brave enough to get on a horse and being brave enough to try to hit a ball this big. ♪

>> what do you love about polo? >> the friendship. the camaraderie. these are fun-loving people. more importantly, safety around animals. >> what does polo teach you about is this and business teach you about polo? >> dedication and focus. working. working hard. more importantly, anyone who plays this, the camaraderie that comes with this and the focus in trying to be effective as a polo player. ♪ [fancy classical music plays]

>> i have read that you would like to buy a premier league football club. is that true? >> it is not impossible. no. no. >> a lower the club? >> i like building things. one of the things you find in africa is football to worshiping in churches, is a big thing. i think that flagship. -- about that flagship. it is a fantastic as this model. >> who would you like to buy? -- a fantastic business model. >> who would you like to buy?

>> i am looking at a club in london in an african neighborhood. you just never know. anna: i'm disappointed to see that mark barton did not play any polo during the filming of that. he manages to turn every conversation into one about football. here, we have the european commission. he says "i am convinced there will be accord." there will be technical work. there is work to be done on pension reform and vat rates. major progress has been made in the greek talks. he reiterates that he is convinced they will be in accord this week. one of the most positive views we have seen. thehe spoke on french radio.

the european commission is maybe playing "good cop" to the other "bad cops." tim joins us. good to see you. we have talked about greece. we'll talk about egypt and how we should step up on cotton. we could seek scarcity. -- see scarcity. tim: egyptian cotton had high quality. the production of the crop is declining significantly. egypt is one of the biggest importers in the world. they say they should grow food. that is, logically, what is happening. wear your shirt and -- shirts and sheets come from will be

different. anna: let's talk about climate change. we will speak to a reporter later on about the latest story on climate change and the change we are seeing in attitude from european companies. tim: there is a split between the european and american oil companies. they ended up getting together and decided that they needed to be on the side of the greater good and take a position on climate change. exxon and chevron are resisting this. they are realizing that they are quickly becoming gas companies, rather than oil companies. going after carbon is not bad for them. anna: interesting divide between

the europeans and americans. they operate under different regulatory regimes. tim: the climate change issue is gaining momentum. we saw the pope come out and say, "this is not cyclical." physicians are saying it is a health issue because of the pollution and the pollutants coming from the burning of coal and fossil fuels. anna: prices come down and people thought we would see less emphasis on climate change. where do you see oil prices going? charles diebel: we think it will be flat and the supply levels will remain high stop we are not looking for radical change. there is a concept that the windfall is lower and the lower

energy prices could be seen. anna: thank you. coming up next we will go live to athens and brussels to get the latest on the greek story. stay with us on countdown. ♪

>> this is a position with growth within the eurozone. anna: the final push. they are given until tomorrow night to meet with creditors and and the standoff. the mixed signals of chinese stocks extending their. the manufacturing sector shows further signs of stabilizing. 2015 is on track to be a

record-breaker for m&a. the u.k. gaming group confirms merger talks with a rifle. -- rival. ♪ anna: welcome back to countdown. the second hour of the program. im anna edwards -- i am anna edwards. let's talk about what is happening on the currency markets. these are the ups and downs of the greek story and a little more besides the latest. you can see the weakness in the euro. it is being driven by comments by goldman sachs. you see the parity against the u.s. dollar. it is interesting with the talks going on. goldman sachs draws our attention back to the differences we see in the policy with the ecb versus the fed right now and they see it as

more to the point of where the arrowheads. -- the euro heads. the automation is coming back to the european story. the european stock market had a good day and yesterday was up on the stoxx 600. the banking sector is doing well , overall. the banking sector, in particular, doing well. all of those are moving up a little bit. there is a little bit of optimism. we will see the u.s. stocks pick up and move towards it more strongly. it is only 0.4% away from the trading day.

we are talking with one of the key voices today. john will be joining the team at 10:30. he talks about how 2015 could be the year with the bond markets. that is the greek story. let's bring you up-to-date with what is happening on the ground and in brussels. they had given greece until tomorrow evening to give the final push needed to end the standoff. let's get over to guy johnson and a hans nichols, who joins us from brussels. what needs to happen? to paraphrase christine lagarde there is a lot to do and not much time. guy johnson: there is 48 hours

to get the deal done. that is what he wants. this is not going to drag on. this is what the greek prime minister said last night when he emerged from the meeting. >> the proposal has been accepted. the negotiations must go for two days. they want a comprehensive and a viable solution that is accompanied i a growth package to make the economy viable so the country can stand on its feet again. guy johnson: we have a summit that will take place and they want a deal done by the end of friday to put greece on a much more even keel than it has been

thus far. the devil is in the details. anna: indeed. the details come into the spotlight. what are the sticking points? guy johnson: they have placed emphasis on tax increases and not on spending cuts. what they want to see is changes when it comes to spending cuts. the changes need to be cut significantly. it is more of an even dallas -- even balance with the program. they're putting forward a paper that talks about restoring collective bargaining and raising the minimum wage. it is making sure the parliamentary vote can happen. a spokesman for the government says that he wants to make sure the coalition actually votes for

the program. if that does not happen there is a lot of work to be done. anna: there could be political implications. we have had a lot with institutions. what you make from greece so far? >> they like what they see in they want to make sure the numbers add up. they want to make sure everything works out so that they can raise the revenue to meet the primary account surpluses. there was optimism. it was a late night and i expect a few more late nights before this is all over. listen to how the minister said that time was the real enemy. >> i am convinced that we will come to a final agreement this

week. we have to find the agreement this week. we cannot play on football fields with prolongations. hans nichols: the shift has been to berlin. they have to clear it. here is how merkel couched what needs to be done. >> the participants of the discussion, including myself, says that we want greece to stay in the euro zone and what they have put forward today is progress. there is a lot of work that needs to be done and we have to concentrate on the work. const nichols: -- hans nichols:

what will the numbers be? we will see and go for it. there seems to be a lot of heavy lifting to be done. we do not want to discount the optimism from all sides. it is the first time since february since we have seen it. >> it seems like there is more optimism than last week. the european commission said that, when reforms are agreed on, they can discuss greek debt. it is an interesting, he -- interesting caveat. hans nichols: the eurogroup statement was, with the third package, you can always discuss the idea of debt reduction and germany signaled they wanted to do this. they need to pass a current plan and finish it. then, germany would be open to discussing a debt breakdown.

anna edwards: thank you very much. thank you for bringing us the latest. it is eight minutes past 7:00. let's go to the macro economy. the pmi is due out later. the head of macro strategy is still with us. david powell joins us for a look ahead. what are we expecting to see later with the numbers? we talked about lots of momentum in the economy. are we going to see that in the new numbers? >> they peaked and are coming down. the quarterly average is higher. the growth is likely to be as high as it was in the first quarter. anna edwards: do think the

conversations around greece are taking a toll on the broader european picture? charles diebel: yes i am sure. particularly in terms of confidence. it is fairly standard economic expectation, if you understand how you normally expect to rebound. clearly any further uncertainty, with respect to greece, would have a negative impact going forward. as it stands, we are looking at a slow, patchy nonetheless recovery. charles diebel: anna: -- anna: this will give us a better idea of how things looked for the economy. david powell: it will probably be in line with the consumer confidence numbers and it is

being sent to a variety of other surveys. the expectation components have come off there. anna: what has that set out to achieve and whether it is achieving it that was desirable, in the sense that it brought down the euro. david powell: the avenues to which it happened and they found eurozone investments desirable. that was released last friday and it shows the foreign investors and the money elsewhere. in addition, they are leaving

assets and finding returns abroad more attractive. charles diebel: the interesting element to it is the transmission mechanism to the economy. what you would have was the trickle down to the real economy taking a long time. anna: are we seeing a pickup in credit? charles diebel: you could argue that it would have happened anyways by a mean reversion process. over the next 3-6 months, we will really see the acceleration of the credit demands. anna: thank you very much. charles diebel: stays with us a little for -- a little further on the program. on the other side of the break, the european oil industry has begun to march on climate

change supporting efforts on polluting. stay with us on the conversation -- further conversation -- for the conversation. ♪

anna: welcome back. it is coming back to 60 minutes past 7:00. here are the stories you need to know this morning. u.k. businesses will agree to -- they have identified key areas to reform to make a closer union and have a clear and balanced approach towards immigration. david cameron plans to meet european officials on thursday. european leaders have given the minister until tomorrow night he says by creditors and and the standoff that threatens to split the eurozone. the government has begun to

converge with the terms of creditors. they say the talks of debt relief as possible when greece resolves the immediate financing disputes with creditors. we have evidence about the chinese slowdowns in factories using. they beat estimates to come in at 49.6. the industry is contracting and it points to a stabilization of the sector after easing monetary policy. what should matter to chinese stock investors? it is the early part of the week. should the stock investors refocused on asia being welcomed into the global full? should they focus on the central bank reaction? should they focus on none of that? it is a change from talking

about greece. we will continue to do that. let's focus on m&a. deals are up 24% this year. the show deal will push it past the $3 trillion mark for the first time since 2007. let's get more with steve outland joining us now and charlie from the investors with us. it is great to see you. talk about the cycle. steve: you have low interest rates. the stock markets are robust and stock has a valuable -- is a valuable. in terms of financing, you have

very us markets that are not doing as well. we see consolidation with some sectors and very large mergers. quite a lot of those. quite remarkable. that is the synergy with the economy of scale. it is really a perfect storm of activity that is a natural phoenix. at what point do the wheels for off and somebody gets it wrong? anna: give us your thoughts on when the wheels fall off if it is driven by cheap money. charles diebel: it plays into the conversation about the virgins in monetary policy -- divergence in monetary policy. we could see movement away from that.

how much of that is a threat to the process? does it happened to be mature at this point? >> at the moment, so many are waiting and it could not last. you have uncertainty and the u.s. election coming up. one thing people do not like is uncertainty. we saw the slow down. on the global scale, not as they go. so, i think it will continue for the remainder of the calendar year. as we get towards the end of the year, the big players who are going to do something have done it. you get on to exclusionary deal strategy. anna: you mentioned the u.k. and you better focus in there.

one issue is businesses not investing in machinery and other things they might have in the previous cycle. why are they competent enough to not do m&a? is there a trade-off with the cash file? steve: the opportunities are there. there are only so many things at one time. we will see companies focusing on implementation and it will be things like volatility and bringing the workforce together. ultimately, you only make money when you are better together than apart. getting synergy, and seeing able to do -- getting synergy and being able to do things as a big

organization. anna: you need to crystallize. we saw pharmacies and people looking for a cheaper tax rate and a lower tax rate. you have gaming companies talking about it. we have telecoms being driven by it in various geographies. there are different drivers in different sectors. steve: pharma continues to be big. the confluence of telecom media and triple-play or fraudulent for play -- quadruple-play or what ever it is now, it is coming back. following the financial

services, it has always been a big sector for m&a. anna: you said, "obvious" for the energy sector. you need a long-term view, don't you? steve: it you do. if you are doing a transaction, the oil prices are huge. to some extent, if the company is a target, it is all about relativity and opportunity. a week shock creates opportunity. a lot of companies react and say, "the cousin of oil prices, we need to drive more efficiency and synergy. it is a fantastic moment. charles diebel: we could see some m&a and greece. -- in greece.

anna: thank you, steve. charles will stay with us a little longer. we will extend the conversation we had earlier about the european oil industry. we began to see it march towards climate and lighten it. shell bp total eni and others announced that they were previously on the wrong side of history. governments are leading the way on climate and. will the move by them a seat at the table? it is great to see you. thank you for coming and. how does the climate change letter get put together?

this is signed by european oil businesses. how did it come to fruition? >> i started looking at how the letter was put together and the key trigger was the ceos thinking about something i was not thinking about. the church of england announced that they wanted to have a discussion with oil companies because the church of england is a big investors. they told the companies, we want to have a discussion triggering something with bp, shell, and other companies. anna: amazing. we saw the catholic church stepping into the conversation as well. is this enlightened? four, is this a bit of green-wash. -- or is is a bit of

green-wash. >> it is a good rhetorical. they know the climate change conversation is coming and they want to be on the right side of history. it is good business for them and they are big gas producers. one of the ways they can use it as oil companies is stop using coal and use more natural gas. that is good business for them. anna: the u.s. oil giants are not on the same page. >> they are not. they tried to get everyone on board. exxon came close. exxon has talked about potentially supporting a carbon tax. anna: thank you for joining us with the latest on the energy sector. charlie charles diebel: thank you for joining us.

-- charlie, thank you so much for joining us. he joined us for the last hour on the program. we will bring you that story when we come back. 7:27, or thereabouts, on the program. ♪

>> welcome back to "countdown." let's have a look at currency markets. the euro is still on the move. a bit of weakening. they still see the euro heading to parody. it is interesting with the push and pull of the greek crisis. we haven't always seen the euro retreating when things got complicated. he is telling us to focus on the

policies from the central bank in europe and the u.s. so the contrast is what they say should be driving euro-dollar. they do still see the euro hitting parity with the dollar. 1.1248 is where we are with the dollar. and the british company is in talks over a possible merger. the deal would see the new company rival the gambling industry's biggest players. corporate lenders gathered in new york to pay their respect to the j.p. morgan chase chairman, who died unexpectedly last week. his funeral will be held in midtown manhattan.

we have seen evidence the slowdown in chinese factories is easing. the purchasing managers index for june beat estimates. it points to a stabilization of the sector after an easing of monetary policy. let's tell you what is happening to equity markets right now. it looks as if we are going to open across these equity markets. a little more optimism being inject did today. this time -- injected today. this time yesterday we were pointing to a higher open. euro stocks expected to open higher. the french and german markets around 9/10 of a percent higher. it seems investors have a little more appetite for risk perhaps a result of what we have seen coming out of the greek talks in brussels. let's have a look at the borrowing costs that prevailed

around europe. we have got the german, spanish italian, maybe even greek yield. you can see not much movement holding pretty flat at this stage of the day on the greek story. asian stocks rose following a rally in global shares. greases new measures to appease lenders. david can run us through the latest on the asian market. >> we are seeing it is a risk on the session. japan has been closed for half an hour. it was a very good day in tokyo. it has been a very good three days in japan so far. we close up 2%. south korea, australia also

doing quite nicely. the regional benchmark is back to levels of early june. we have more or less the rate that decline. there is a lot of focus on the chinese mainland market. they are up by a 10th of 1%. a very volatile session coming off the big drop we saw friday. this is a look at the chart for the day. i think what is worth noting. we are roughly at about a billion right now. we have managed to use the daily

quote a going all the way back to when the shanghai connect started. they are buying at these levels because of the drop yesterday. is this the start of a steeper correction. >> thank you very much for the latest on asian equity markets. that takes us to the question on twitter for the day. we have seen that weakness in the chinese stock market for the early part of this week as well. should it be underlying data? should it be the attitude of those companies that run the big indices? get in touch. we have had some comments that suggest relationships between the stock market and the government should be in focus. 7:35 here in london.

let's head back to europe and specifically relations between the u.k. and the eu. they will back david cameron in his bid to keep the u.k. in the european union if he secures a deal that helps the european economy. good to see you. the bcc has set out five criteria for agreeing to back the prime minister's stance on europe, haven't they? >> they have indeed. the criteria are not surprising. there are two points that are going to be typical. the one is an idea of an up down. the other is a clear policy on immigration. we know david cameron has tried to get some kind of deal to secure a curb and work benefits for migrants. they off -- this is something

people have been more optimistic about. it could change without changing the treaty. the others are less burdensome regulation, anything that would benefit the eu. these are not difficult points. anna: you point to some tension. how many key groups are you going to look for when you try to get his proposals? >> they realize an exit from the eu would be very messy. what we need now is for them to come out and do so early. the last referendum we had with scotland. people came out with the support a little later in the day.

if they do come out and tell people about it now, just to hammer the point through we can get a negotiation, that would be the best for the economy. >> the lobby group set out 10 areas where they think there should be action. they all come with criteria. they come with their red lines. >> of course. business in britain has been the less supportive voice in this debate. what we do agree on is negotiations are important. now these negotiations are in a technical stage. that means cameron has on around. he has met up with eu leaders. he has identified the areas which need work and which he is likely to get results. anna: how does it work from

here? we have got this meeting this week. he was going to tell us when he had achieved some level of renegotiation. are we clear when he is going to reform everybody -- and form everybody quest -- inform everybody? svenja: no. these can take a lot of time. how can it be put in the treaty as an addendum without causing change which would make it impossible? we are in a wait and see mode. we don't know when a referendum is going to take place. anna: the timing is in the air. we have the latest on the grexit. we are less than half an hour away from the equity market

open. let's see how futures are performing. these are the futures across european equities markets. we are seeing a strength on european equity markets. that follows after a very strong day yesterday when we saw european equity market delivering on the greek story. let's get a voice from the market. the comanager, tim, good to see you. another day we are seeing optimism. does this make sense to you? are you feeling a little more optimistic about what can be achieved? max i wasn't surprised by how aggressive the bounceback has been. if you can recap, before this year we had a rally which was led by the cost to the capital trade.

it made financing cheaper for companies. at the start of this year it was more of the euro, which was leading the market up. yesterday we had it at 114. it weakened overnight. i was surprised by how much news from greece did affect the markets. having said that it is going to have an effect on markets especially during the summer months, where it is usually lighter. anna: goldman sachs has talked about how they think the euro is going to head to parody. it went off the radar, didn't it? now it seems to be coming back. do you see the euro heading to parity with the u.s. dollar? >> if you look at monetary

policy, there is a little bit of the virgin's going on. we like to call it policy overcharge. you have got an ecb which is going to be standing behind markets. i think mario draghi's recent comments about markets being volatile was very clever in a way because he didn't commit to keeping pressure on the euro and supporting markets, but i think that served to take some of the pressure off. i think if things take a bad turn with greece or anything else, they will be there to put their foot back on the accelerator with monetary policy. anna: we are talking fundamentals perspective. are we going to get emi data a little later this morning? it is 18 minutes until we get the french and the germans. you mentioned groggy.

he talked about a loss of momentum in the euro zone economy. to some extent we have seen that already. do you think the greek situation is something we are going to witness as we go through the summer? do we pick up from here? ask it wouldn't surprise me if things come off slightly. what companies are telling us things sound broadly positive from a european demand point of view. summers are always quiet from a market point of view. come the second half of the year, particularly corporate earnings, the markets might sort of run ahead of where earnings are. in the second half of the year you will see european earnings

start to kick in. >> that is interesting because some people suggested we could see a pickup. others such as yourself they expectations -- say expectations are already in place. it makes you wonder what we are going to see. >> it's going to be choppy. we don't have to be looking at things on a daily basis. i would expect some volatility and possibly if not a pullback at least consolidation. anna: are you looking to stock up on anything as greece looks to some areas looking to buy into particular sectors or ones where you see we are undervalued? >> we talked about the technology or, and those are areas where they have come up in

recent weeks. we still look for those companies which while they do have exposure to european earnings, proving we also want some element of control of these companies destinies. we look for exposure to turnover. we have been adding some names like renault, which is exposed to the european story. not so much of a china story. that is something we are very excited about going forward. it is improving finally. anna: thank you very much. coming up we will talk m&a.

it is shaping up to be a record-breaking year.

anna: here are the stories you need to know. the british chamber of commerce talked about the bid to keep britain in the eu. david cameron is preparing to meet in brussels on thursday. european leaders. alexis tsipras talked about the

terms. talk of debt relief is possible once greece resolves the immediate financing dispute with creditors. and talks of a possible merger. if the deal goes ahead it would see the new company rise. he was talking about one of the drivers. what is driving this in your view? >> as long as there is no further interest or rate

increases, i think companies will think thoroughly how to grow, and m&a is one of the best tools. beyond cheap financing i would say confidence in the euro region is also picking up. companies we are a bit scared of going ahead are now more confident. they feel the economic recovery is underway so now is the time to do so. >> they have suggested perhaps druggie sees the need to get things done. what are the big drivers -- perhaps druggie sees the need to

get things done. >> they are continuously doing deals because now is the time they are in the sidelines. they feel they need to move very quickly. we also see a lot of activity in energy. a little less in consumer. it is the megadeals coming through. what are the challenges? >> i guess it is the main challenge, whether the companies

when put together will be able to work. at the end of the day will -- they will assess whether it makes strategic sense. anna: thank you very much. let's have a check in on the markets now. just seven minutes until we start trading on equity markets. a look at the german market and some comments. >> i am looking at the dax index in particular. one of the worst performers. it wasn't always this way. if you look at the dax over the past year you can see it was gaining, gaining gaining and hit its peak in april.

what happened is it fell as much as 11%. that was due partly to a stronger euro and also because of concerns of greece. it led some analysts to say the dax could drop as low as 10,000 all the way down there. what is happening now is yesterday you could see that spike there. it rallied the most since 2012. now jpmorgan says it is time to buy it back again. it sees it gaining 13% through 13,000 through the end of the year. anna: thank you very much. we are minutes away from the start of european equity trading. mark bartley is going to be hosting "on the move." mark: i was here at the close.

almost 4% gains. it was astonishing. a greek deal just around the corner. i was a bit confounded. i will be asking one of my guests. the biggest gain in years. the bond markets reacting in a similar manner to the equity markets. we are going to be chatting with the deputy chief investment officer of black rock talk about the bond market. -- blackrock to talk about the bond market. >> a little more polo on the program. we will wait and find out. ♪

mark: good morning, and welcome. we are moments away from the start of european treading. let's get straight to your morning brief. -- european trading. leaders give of alexis tsipras until wednesday night to step up the pace of negotiations. they are weighing up a debt relief plan. stabilization in china. we get a fresh signal the manufacturing slowdown is easing. data later. pmi for germany, france, and the

eurozone give us the latest on the economy. the new composition is expected to show the third monthly decline. european markets just opening. it's going to be another day of games. caroline is at the touchscreen. caroline: what a day. yesterday we saw a quarter of a trillion euros added to the stoxx 600. ftse 100 up. risk appetite very much in vogue this morning. 48 hours to get what tsipras himself the prime minister of greece calls a viable solution. wednesday the finance minister meets. i set the agenda for the ministers together once again. now our attention must go to the greek domestic political