>> we have not yet made the necessary progress and with regards to some points, one has the impression we are are falling back. anna: deadlock and deadline. alexis tsipras -- in bailout talks. negotiations extended to the weekend. shanghai slump. chinese stocks tumble over concerns that the nation's longest ever market has peaked. tesco's troubles. the new chief executive faces shareholders for the first time as it tries to recover from its biggest ever annual loss.

welcome to "countdown." we had a packed show this friday, but i want to kick things off with where the euro is currently trading. it is trading down by about a 10th of a percent. many people are now refocusing their attention on the euro during this greek debacle. even if it exits the euro analysts now feel that the euro will continue to weaken many focusing now on the change, the differences in rates. the united states is preparing for a rate rise, and in europe that could be extended to a concern. many are feeling that the euro -- we have reports from tokyo and mitsubishi seeing parity by the third quarter.

the euro is currently driving lower, and stocks are trading lower yesterday. from a percentage point, h&m disappointed on its numbers, and that was a key sector that was falling. interestingly, fins is still up 14% this week despite all the volatility. they are still hoping a deal will be done by this weekend. let's have a look at what the united states had to offer yesterday. they closed on a downward trend across the board, energy stocks really going well. we saw consumer spending increasing, the most since august, 2009. of course what was rocking the boat when it came to the euro is greece. alexis tsipras and european creditors have hardened their stance and bailout talks are extended into the weekend. hans nichols iss in brussels.

publicly, privately, the two sides are so far apart. hans: there has been little opportunity and little sign that the signs are diverging. this morning, we had talks go all the way until 3:00. although greece wasn't technically on the agenda. when mr. sippers tried to bring it up last night, he was politely but firmly told to pipe down -- this is not the moment and we aren't going to get involved. there is a we had -- two competing proposals, rejected, and one from the greek side. for mrs. merkel, she is sounding a lot like her finance minister which is to say very negative. then we also heard from donald tusk, talking about how all the

institutions are united and on the same page. >> it was a long discussion. we talked about the situation and potential consequences. we concur on the current process of negotiations. there is no need for another summit, not tomorrow or over the weekend. we expect the eurogroup to conclude on saturday. hans: caroline, all the emphasis now shifts onto this saturday meeting of finance ministers here in brussels. disturb our focus will be coming back for that. -- mr. verify varoufakis will come back for that. there is some difference among the creditors, particularly on what's or does economic assumptions the imf is taking about greece's probe. there is some indication that

some of the mathematics may be too optimistic. that all kicks off again tomorrow, and caroline, there is time for you to get on the euro come down here and report this out yourself. but i suspect we will have a busy weekend in brussels. caroline: the fifth meeting in just over a week. they are seeing more of each other than their families. let's check out what ryan chilcote is up to in athens. you have been on the ground -- where do you think this leaves tsipras? ryan: my favorite part of the deliberations yesterday was when donald tusk said that the game is over into time's up to which the greek prime minister said this is not a game there are a million and a half people without work. i

don't underestimate what a humiliated nation can do. just a little bit of insight into where the greek prime minister and many people in his party are coming from. yes, they may want to take this down to the line and they may want to political solution but ideologically, they also believe that the last bailout deal was a raw deal, and they really do quite possibly feel that no deal is better than a bad deal. there are still four days. if the greek prime minister comes back today, since the eu summit, he technically needs to be there -- if he comes back most of the great people they understand that this is complex. the hard-core that supported mr. tsipras it is very important to them.

exactly what kind of austerity they will be subjected to go in record -- subjected to going forward. caroline: ryan, what about capital control? is this rearing its ugly head once again? our people feeling that 20% of the deposit -- they could see that come about? ryan: look, no capital controls yet, the what you do need to watch this morning is the ela readout and what happens in terms of the emergency liquidity assistance from the ecb. it gives us a real insight into what is going on and the health of the greek banking system as what depositors are doing. remember, the more the greeks pull out of the banks -- and they have already pulled out about a fifth -- the more this country is reliant on the ela funding.

the ecb can't give that money to greece if they -- the banks here in greece -- are deemed insolvent or if there is no program. will guess what happens on tuesday? that is when we theoretically may not have a program anymore. we need to watch ela today. will it increase the ceiling? the expectation is yes. but over the weekend the big question is do the banks need to be closed? will they be shut on monday so that some kind of capital control can be legislated? because you can't just legislate capital control without the parliament. but will there be a period in which the banks are shot? back to you. caroline: ryan chilcote, thank you very much, live in athens. let's turn our attention to asia where chinese stocks have slumped on fears that the country's longest ever market

has come to an end. let's head over to hong kong with juliet. stocks in asia lower for a third day, and it seems to be the shanghai composite in particular dragging down the markets today. juliet: it certainly does seem to be that way. were not talking about greece, we are talking about these volatilities that we have been seeing -- look at the shanghai composition -- it has been down as much as 5% today, meeting we are down for moore. -- more. it will be the biggest two-week decline since june, 2008. there is a lot of concern that valuations and recent run ups have been too high and that is where we are seeing stocks that had been leading the charge the technology sector, and down.

the industrial sector is down by 5%. of the technology sector is looking like it is going to enter into that territory. let's look at the rest of the asian pacific. is down by about 1.5% at the moment, heading into its last hour of trade. it is dragged lower the by that volatility that we have seen on commodity prices. some weakness in hong kong, a little bit of gains coming through in south korea, closing out around .5%. despite the weakness in china, we saw the chinese sharemarket making debuts today, rising 44% before being halted. caroline: juliette thank you. stay tuned to bloomberg throughout the morning, because we will bring you several conversations you don't want to

miss. first up, i will be speaking exclusively to the chief executive ben mcgarraagara and the killings in the platinum mines. that it is onto jean-claude triche. then luke johnson joins us and we will ask what he inks about a greg said -- what could that mean for the united kingdom? coming up, the culmination of the worst year in its 96 year history. after the break, what tesla will tell shareholders. on that note, it brings us back to our twitter question of the day -- see think tesco is a takeover target? tweet me, hashtag #tesco. stay tuned. ♪

caroline: welcome back. it is 6:14 here in london. here are the stories you need to know this morning. euro area finance ministers will meet tomorrow for their fifth session on greece in just over a week after emergency talks yesterday failed to yield bailout. angela merkel has said that saturday's meeting is a decisive significance. they have told their finance ministers to do everything possible to strike a deal at the june 30 meeting. chinese stocks have tumbled as concern grows that they country's longest ever market. the shanghai composition tumbled today after reaching its highest level since 2009. it is heading for a 16% lost since the middle of the month.

the new chief executive of tesco will face shareholders for the first time at the annual general meeting. dave liles took up the role last september, less than a month before a 263 million pound whole was discovered in the account. he is expected to face questions over payout received by the company's former executive. let's get more on tesco, because on wednesday, we spoke to the former chief executive. >> a long recession we've seen in the last five years, i suppose, has favored the discounts to some extent. as we move into recovery, perhaps it is an opportunity for the middle market players to get considered again by customers who will pay what they do. it will continue to stay competitive. it's hard to predict who will be the winners. caroline: let's get more.

brian, thank you for joining us. give us a sense, charles -- charles: in the u k, i think the money sales will be down. although i think what is more important is whether the volume is up. are they actually selling more stuff? you will also be looking at the customer count -- are they getting customers back into stores? there seem to be more positive signs on these things -- the industry as a whole seems to be picking up. caroline: brian, you have been saying -- look we can't expect of values to go up no matter where you are in the u.k. brian: it is the exception rather than the rule. there are very few retailers and

discounters who are able to do that at the moment. the big four supermarkets -- there is huge competition, not coming just from the very well documented areas, but also from the high street discounters. also from themselves. one of the big issues is the fact that the likes of tesco have been competing against their own supermarkets through online and through convenience. lots of challenges out there, but as charles mentioned what we are looking for is reassuring noise on volume growth. caroline: give us a sense charles, of asset disposals. the share price was up a bit yesterday. the south korean business -- there are some private equity

companies sticking up their hands. charles: done hon be as the one they say is up for sale, and i think what is reassuring is how many people seem to be interested. people seem to be very interested. i think 2 billion pounds is rather fanciful but it seems achievable, and that would be a big help. south korea -- this has been a jewel in their overseas crowd, so why are they selling that? but looking at the south korean market, it is going through pretty rapid changes. it has been falling for a long time with the whole industry. online is growing very fast there, convenience is growing fast. it is sort of a double or quite moment for tesco. either they would have to put a lot of investment in it or perhaps take the money now and

let someone else do the investing. caroline: terry leahy was talking about that -- do you think it is good that they are getting rid of extra assets and focus on the main problem, the united kingdom? bryan: from a balance sheet perspective, it is probably the right thing to do. caroline: the debt is very high. bryan: from a long-term point of view, it would be a shame to see south korea go, because it is large and profitable for tesco. any opportunity they can get to get rid of some assets and raise some cash and go back to either reducing debt or trying to redirect the u.k. business is going to be a good thing. it's not all about price and the u.k.. there are lots of questions around price and value, in getting prices lower, but

there's a lot around service the quality. they have made advances or not depending on your point of view in the last four concepts. it will be intriguing over the next six to 12 months to see what the future is and how tesco will start marketing itself better to its existing shoppers. caroline: it seems that they are improving. they did seem to have better -- they are getting more volumes. is dave lewis so far doing a good job? charles: i would say yes. he is getting very generously rewarded for his job. and it is a very tough job to do. we haven't really seen his position all over the strategy -- we have yet to see what his vision for the businesses. that will be fascinating to see

not only on tesco but on the rest of the industry. caroline: do you think shareholders will like what they hear? charles: i think there is a degree to which -- prices continue to be down quite a lot year-over-year. people have started driving a little bit more. petrol stations, it's a number of little things that make it more likely. sainsbury mentioned that people are buying more clothes. there could be a number of lucky little things with the economy coming into line with the revitalization strategy. caroline: tesco takeover target? do you think people have wondered if they wanted to buy the business? bryan: there are probably much

better candidates for takeover in the u.k.. caroline: who? bryan: there is still residual interest in sainsbury's. i think tesco is simply too big. the share price is now low enough that a big venture capital business could call to play looking at it, but it is a big challenge. caroline: especially for warren buffett. it's been wonderful having you on, thank you. the u.s. secretary of state john kerry visited began on friday, the talk aimed at reaching a definitive deal on iran's nuclear program. iran's foreign minister is due in the austrian capital. elliott gotkine has more. this final round of talks begins

tomorrow. we have people coming from every area of the globe. elliott: very much so. they will be joined by people from france, germany, and the u.k., china -- the world powers -- and the deadline is due on midnight on tuesday the and a time. no one really expects them to hit that deadline, and why would they when they haven't had any deadline in two years? we have, of course, heard some rhetoric over the last few years from the iranians and ayatollah, seemingly backtracking from some commitments to access various sites which were made and the framework agreement that we got. they had some concerns articulated from people in the united states about maybe the

u.s. is eager to clinch a deal. the u.s. administration was brushing that off yesterday, saying that the commitments are the one that iran must abide by. ultimately, if we take a step back, there is a lot of rhetoric on both sides -- what is said in public is not necessarily what will be said and discussed behind closed doors in vienna. next week is when we will start hearing from the players, top diplomats, and a rant will say -- and iran will say. caroline: oil companies and other investors are seemingly cueing up to get into iran when sanctions are lifted. elliott: if you are an iranian bull, you will see an economy that despite crippling economic

sanctions is still worth around $370 billion. you will see a consumer market of some 80 million people. of course, this is the holder of the world's fourth-largest reserve of oil. there are a couple of reasons why people will be flooding into iran as much as some are suggesting -- one is the mindset that people have grown accustomed to not going near iran for fear of sanctions, and also concerned that sanctions may be reimposed on a rant and companies will be left high and dry. caroline: elliott gotkine, thank you very much. coming up, a probe on a platinum producer for failing to get workers. more on that after the break. give us your thoughts on our twitter question of the day -- is tesco a takeover target? ♪

caroline: it is now 6:30 here in london. time for your fx check. we have to keep our eye on the euro because it is trading low at the moment, down 2/10 of a percent. to key issue here is many people turning their attention to after the greek saga. even if greek exits, or even if it stays we are expecting the euro to go lower -- that is what barclays is saying. many are saying we could be pushing towards parity in the third quarter.

the reasoning is -- focus in the differential in rates. the united states is looking at potentially a rate rise. meanwhile could we see more quantitative easing in the eurozone? mario draghi is saying he is committed until september. we didn't see greece fallout of the eurozone and threaten to destabilize the economy, more than the 1.1 trillion that has been promised. currently we are down 2/10 of a percent and many are now refocusing on the differentials and rate between the u.s. and the eurozone. here are the stories you need to know -- euro area finance ministers will meet tomorrow for their fifth session on greece, over a week after emergency talks yesterday failed to yield a breakthrough. angela merkel said saturday's meeting is a decisive significance. she and her finance ministers

have and told to do everything possible to strike a deal. and new chief executive for tesco will face shareholders for the first time at the company's annual general meeting. dave lewis took it up last september best than a month after the hole was discovered in the account. that oversaw the biggest annual loss and is expected to face investor questions. and the u.s. supreme court has rejected the latest challenge to obamacare. the president's five-year-old health care rule was upheld. the controversial policy would be hotly debated during the presidential election campaign, especially within the republican party, which is posted from the start.

the swiss watch industry is facing a tough time with watch exports falling 9% year on year. it is set to be compounded with the apple watches availability. let's get more with thomas miller in geneva. thomas, how big a threat is the apple watch to the big names like rolex? in has been argued -- it has been arguable whether it would eat into their sales. thomas: most people i talked to -- nobody really knows but most i talked to say it kind of depends on the level. rolex -- if you are forking out $10,000 on a watch it is not because you want to tell the time. maybe there is another reason like status, or you just

appreciate the art and craftsmanship. that again, you have some brands that sells for about $1000. it is solar powered and can tell the altitude and barometer -- do you want that watch her do you want an apple watch that has electronic functions? caroline: tell us about how the swiss watch industry is reacting to these new functions. some of them are trying to get pretty tech savvy, themselves. thomas: it started gradually but this year we have seen a slew of announcements from watchmakers, swiss ones, to start their own smart watches. tag hoyer will be coming out at the end of the year, and you have some other interesting ideas such as one from en bmont

blanc. everyone is starting to react to figure out -- ok, how is this going to affect them. caroline: will this potential movement coming from the old god getting tech savvy how many people are waiting in line outside the apple shop in geneva? thomas: i want to down there this morning before coming in and the shop only opens at 9:00. i saw a couple people, but they were waiting to enter the hair salon next door. you see this when the big launch happened. you just didn't see these big lines that occurred with other products. but there was a clerk who was taking reservations -- you could sign up to see the watch. is that a few people had come by, and apple is saying that this is a different kind of product, it is much more customized, not the same sales

process. caroline: thomas miller in geneva. thank you very much. let's get back to one of our top stories -- the june 30 bailout approaches. talk this weekend will be crucial. bloomberg caught up with sir richard branson, who told us he hopes for a resolution. >> i personally would love to see greece stay within europe, and i hope sense will prevail and compromise will be reached and the matter can be settled. we have to cross fingers that it can't be dragged out much longer, and everyone needs to know where they stand. caroline: let's speak now to the head of economics, joining us through the next hour.

saturday -- it is delay, delay delay -- deal done? >> i think the expectation is still that we will reach some kind of agreement for 60% chance which leaves quite a lot of risk around the situation at the current juncture. to my mind, it is important is that even if we get a deal we still need to get that through the greek parliament even if that works out without the government being forced to go to election, we still need to implement, to implement a fair bailout plan. there are a lot of steps that need to be put in place. in the interim, the confidence in the underlying greek economy is very weak at this point in time, and it is very difficult to see you getting what you need -- economic growth. it is hard to see where that

strong economic growth is coming from. we have heard a few words from juncker about investment plan but it seems to be funds that are already there, and ultimately that is what we need -- some light to get back to economic growth. caroline: what about your concern for capital control, the banking system so heavily dependent on the ecb and the emergency liquidity? are you expecting capital controls? michala: capital controls will really depend on what happens at the negotiation and the speed of deposit flight. if we get there is still agreement, there is a risk that you would be heading within a matter of days and weeks toward the situation where capital controls could become a reality. the other key thing is what happens to the ela facility? to our mind, it is highly unlikely that the ecb, in the event of no agreement, would cut

off greece from one day to the next. that would provoke a very deep banking crisis and i don't think the ecb would do that. we have seen the ecb do the day by day process of managing the ela and i think the ecb would give an indication that the delay would be capped. one of the things we heard from bundestag was about the possibility of reconsidering -- there is obviously going to be a lot of discussion around those issues, that i would be very surprised to see the ecb cut off from one day to the next. caroline: you will be staying with us. first, i want to talk about south africa. an investigation into south africa's worst massacre since apartheid is criticizing a company for ordering employees to work through a violent strike.

44 people died at the minds of 2012, when fighting broke out between labor unions and the police. joining us over the phone for an exclusive interview is the chief executive, then mcgarr. -- ben magara. i want to get your take on this report. ben: we have not seen the full report yet. we spoke last night and we welcome the report because we have all been waiting for it. we acknowledge the findings, and we believe it is a vital step in the process of healing after the tragedy. caroline: you have been enacting, trying to make living conditions better for workers -- that seems to be an area you were criticized for in 2012. what are you doing? ben: we have worked very hard to

improve the living conditions of employees. we have a hostel system we committed to years ago that we would be finished with it by the end of december last year. we finished that well on time. we have also started a program to increase the amount of accommodation for employees. he also gave we donated 50 hectares of land and our partnership, contributed 429 million to the development of integrated human settlements and social housing. all these projects are underway and are making good progress. it has been critical for us, we knew that living conditions needed to improve in the mining industry into the whole country

of south africa. caroline: what about the police the role within 2012? they violently reacted to these strikes. do you feel there should be prosecutions among the police? ben: i guess every stakeholder has to take the opportunity to reflect on what -- on reading the document, and give that the punishment they deserve. i want all stakeholders to reflect on what needs to change to ensure that no one has to go through what happened ever again. in our country and in our company and in every area. caroline: so what is sentiment like on the ground with your workers? do you feel that we can ever see strike action happen again in the next couple years? ben: i think -- it is a turning

point, because our landscape has changed, and we all have to realize that if we are to realize the value of this mine we all need to have a shared vision about how to create that end achieve a sustainably peaceful environment. everybody feels like they will benefit from that process. that is why in the last two and a half years we have been open building transparency because we want to create a better place for ourselves. caroline: are miners still calling for increases in pay? ben: we have gone through negotiations last year and there is a three-year agreement in place. the best i take out of where we are today in terms of relationships is that

immediately after the strike we went through a relationship and agreed on what is our view of a successful relationship. in recent times, a lot of workers -- even though we have the strike, no one died in that period. we are fixing relationships reaching the trust that is so crucial to make a sustainable environment. caroline: and what about the trust between the government and companies? the concern here was that perhaps the financial part that was played by the government did have clearly was a nonexecutive director of lonmin at the time. do you think people playing a political role shouldn't have roles within the private sector? ben: i think what we see here is

-- we have to understand the implications of it and learn from it. clearly, having seen what has been seen, what we really see is the space where every stakeholder can say -- what more could i do to avoid what happened? the role of the south african police and any police in the country is to serve and protect people, and i think all those efforts have to be reviewed and it is clearly highlighting the need for development within the south african police. i think everybody has an opportunity to reflect and see what else they can do. caroline: i am sure you'll be getting hold of that report and poring through it. ben magara, thank you very much. coming up on "countdown," remember when vehicles were only -- after the break, our

interview with the formula e motor racing championship. ♪

caroline: welcome back. to the 6:49 in london. welcome back to "countdown." the first all electric car racing championship is closing its first season in london. mark barton asked him about some of the difficulties you has faced -- difficulties he has faced. >> one of the main challenges is to keep it going. it is a huge project and we just kind of started, with the vision but not really a plan on how to do it. we have been improvising a lot. this was completely new, no one has done this before creating a

championship inside cities. it was a little bit challenging. we were able to overcome the problems. mark: when is breakeven day? >> one of the big surprises has been that many big corporations have joined -- sponsors and partners -- because of the green credentials of formula e. many people were waiting for a sport -- and it has -- mark: is it true they have been providing payment in tires? is that true? if it is, can you carry on like that question mark is that sustainable? >> they do provide tires and cash. without cash is difficult to continue. we have some suppliers that provide in-kind, but for us it is like cash. market: and you aren't going to

-- mark: is that something that could happen in the next year or two? >> if things continue like they are and we have a few conversations with big sponsors we should break even next year. mark: is there a valuation? give me an idea? >> negative. [laughter] it depends. it is very early to tell -- if you look at the variables. mark: and the sponsors? will they say you need -- how are you finding, attracting sponsors? >> sponsors have adapted to the concept. many were waiting on the sidelines to see how it was going to happen, now when

discovery came in the championship is very clear and the future -- sponsors are very effective. mark: can you give us an idea of audience figures? i read that the first audience of beijing had 25 million. but maybe since then, the audience share has declined? is that true? >> what happened in beijing -- there was a lot of curiosity. it was the first-ever electric race and we had 45 million viewers. and it went down to 14 million for the second race and since then we have been steadily growing. we are now at 17 million. four london it should be over 20 million. i think it should go pretty well. mark: do you sell the rise to other countries? >> we do.

we sign a very large contract with fox sports. mark: how big you they get viewership wise? >> it can get very big. but we target a generation that is tricky to catch. the younger generation, who were looking at sports and enjoying it through different channels -- mobile, digital. the audience is potentially huge, but sometimes they want to look at short bvids or behind-the-scenes. ma you have quirky ideasrk: -- mark: you have some quirky ideas like fan boots -- is it worth it or not? >> it was a very risky idea. people were telling us -- if fans vote, and a driver who gets

the fan boost they will have decided who wins the race. yes, that is exactly what we want. for now, you can only vote until before the race. during the race, the first part, you can influence while the race is happening. mark: what about brands like bmw, mercedes? >> we hope soon. we are talking to basically all of them. bmw is already our partner. they have a fully electric car. other brands pushing for electric cars -- we are announcing in london. i think more will come. mark: what is the dream? what is the max? >> we have 10 teams but we would like 10 different writers

associated to those teams. what we want is to improve the technology for the cars. caroline: that was our very own mark barton speaking to the chief executive of formula e. let's take a look at some of our other top stories from bloomberg.com. we are joined with our picks. we are talking germany. tim: a very interesting story from colleagues in germany the worst performer of any european stock market this quarter. but the piece does is it asks the question -- what went wrong in germany? there are so many companies that just seem to be if not in crisis than very close to it. it just feels like germany is kind of being left behind. caroline: it seems to be not one particular thing that has hit against them -- they are from

all different parts of the industry. tim: it is banking, deutsche bank siemens. they all seem to be struggling. it will require more reporting, we need to figure this out. michala: i wonder if it is about exports, he can is what we see when we look at the global trade picture is that it seems to have been a little more challenging, looking at asia and the export numbers there. that shows an export story behind at least some of those factors going on. tim: is probably part of the story but there is a larger story as well. caroline: what about where we should live? [laughter] michala wants to know how it has done. tim: a gallup survey talked to 146,000 people about their financial conditions, quality of life -- they coey decided

panama. caroline: panama. check that out online. ♪

>> we have not yet made the necessary progress and one has given the impression that we are falling back a bit. >> deadlock and deadlines. negotiations extend into the weekend. shanghai slumps. they tumble amid concerns that the longest ever bull market has the. and the new chief executive faces scandal for the first time as it tries to recover from its biggest ever annual loss.

caroline: welcome to countdown, i am caroline hyde. on the asset classes we are watching, on the euro, it is down about 0.2%. many are feeling that no matter what happens in greece, whether we see a full-blown exit, or grexit or whether it stays, the euro is going lower. it is going lower because of quantitative easing. the ecb is likely to continue the bond buying up until september 2016. we have barclays saying we could see parity by the third quarter. bbva is expecting that. many are feeling the euro could continue to go lower. let's check on some of the other asset classes.

stocks traded lower yesterday up by 0.25%. it was tugging the benchmark lower. h&m missed analyst estimates. meanwhile the ftse 100 off by half a percentage point. once again gdp compared to the eurozone seems to be hitting sentiment across the globe. energy stocks being pulled lower. you can see consumers in 2009 when you look at some of those numbers.

on the ground in athens for us paul in frankfurt has it all covered. the two sides are clearly far apart. hans: angela merkel is sounding more like her chancellor. that is a bad sign. at least rhetorically, all of the emphasis is on this saturday meeting. finance ministers will gather here again on saturday. there will be nothing in terms of the eurogroup. there seems to be pretty united. they made it very clear that they would be assessing this next proposal from greece. >> we have no agreements. the institutions will have a look at the last greek proposals which came in very late. if they are useful in terms of

making a better deal, then we will put them in. we will hear from the institutions later. not the eurogroup. i will not keep the ministers here. the door is still open to come with new proposals or accept what is on the table. hans: if nothing comes of this meeting, then we get into plan b, planning for an orderly exit. that will be the focus of the eurozone. mr. tsipras coming out of meetings late last night seeming positive areas -- positive. llamas are a focus -- yanis varoufakis is trying to insist they are not as united as they claim to be. we heard from angela merkel and francois hollande. one thing about the eurogroup,

the leader summit they try to come up in negotiations. this is not the venue. we will not be bogged down by what the actual percentage should be. that venue will be saturday and you could intentionally have a vote on sunday in athens. caroline: let's have a look at ryan chilcote and athens. ryan: one of the more telling moments. the greek prime minister responded that this is not a game, there are 1.5 million people unemployed and 3 million on the verge of poverty.

write down to the wire to get the best deal he can for greece but that gives insight into the fact that ideologically he feels that in some way, no deal, as big of an issue as that could be, is better than a bad deal. as hans was indicating, the greek prime minister had a positive spin on the results. have a listen. >> i think that european history is full of disagreement negotiations and compromises. after that comprehensive proposals, i am confident that we will reach compromise that will help the eurozone and greece overcome the crisis. >> at the end of the day there are still four days to solve this, until the tuesday deadline

when they have to pay 1.5 billion euros to the imf and the european part of the bailout program comes to an end. caroline: any queues outside the banks or concerns about capital controls? ryan: the banks are open. what you want to watch today is what happens in terms of ela, the emergency liquidity assistance that the central bank of greece has been extending to the banks. will there be an increase to the ceiling. keep in mind that the ecb has been quite flexible with greece allowing greece to play ball effectively unlike it was with say ireland in 2010. it needs to get a deal in place.

caroline: did the speech yesterday signal a change to the mood for the ecb? >> it is difficult to say of an overall change in the ecb. he is not alone in this. there are policymakers who say the ecb may be going too far. the assistance to greek banks are using money in their accounts to buy debt.

our deposits still flowing out of banks? you bet. we will see when the ecb meets again today, what are that will go up once again. caroline: back in the studio michaela, the global head of economics, what are you getting phone calls about at the moment? michala: i think there are two big questions. all of the questions around the talks, what would happen if greece were to leave the process. uncharted territory if such an event were to occur. there are two channels of

contagion. the first through the financial market. for all of the excitement going on we have to take a step back and realize that the contagion we have seen to date has actually been very limited. that is very much thanks to those mechanisms that have been put in place. the esm the omt and even though it is not the aim of qe, qe is playing a role to stem the potential contagion. there is a second element which is political contagion. what does this mean if greece were to leave, if taxpayers were to take losses on greece that risk is potentially the more challenging. it is also the slower moving of the two. we talk so much about greece.

we have a stronger framework moving forward and is something that president draghi talks about. what type of an agreement the u.k. could potentially obtain. we heard a few statements saying there would be an interim report coming out sometime in the autumn. when we have the referendum in the u.k., the results of that are going to be a very important factor for europe as a whole. caroline: especially when you have your own country seeing a change in its political

landscape. we are seeing the right-wing parties that are anti-eu coming to the four, would that be a contagion in 2015? >> what we have to be aware of is depending on the individual systems that makes it more or less likely that these parties can wind ground or not. there has been a lot of excitement talk around the national front. at this point in time it seems unrealistic that in 2017, the national front could be in a position to come in and take a large role in government. the risk of spreading out to europe is that over time you're seeing these parties becoming more important. these are democratic choices of people which we ultimately have to respect. as i say it is a slower moving risk.

that is what ultimately is important to have a growth strategy. caroline: and grexit, will that ever happen? michala: when you look at the opinion polls in the u.k. they give us to trip messages. if he comes back with a good deal they will support him but if he doesn't you cannot sit and say there is no risk of the u.k. making that decision. caroline: stay tuned through bloomberg throughout the morning. several conversations you will not want to miss. ecb president jean-claude trichet. and what we were just speaking about, ecb easing. and then look johnson joins us at 10:00 a.m.. and grexit, what would it mean

for the community? a quick reminder of the twitter question of the day. do you think that tesco is a takeover target? we just heard breaking numbers. they have done better than expected. we did see the values go down. but that was better than had been expected. many thought we would see a 2% decline and volumes are up. a bit of a turnaround there. the next on countdown, bouncy earnings from nike. next we will talk sports brands and fitness trends. ♪

caroline: it is 7:17 here in

london and here are the stories that you need to know. euro finance ministers will meet for their fifth session. emergency talks failed to yield a breakthrough. german chancellor angela merkel says the meeting is a decisive significance. they are told finance ministers to do everything possible to strike a deal as the deadline looms. chinese stocks have tumbled as concerns quarter -- grow that the longest ever chinese bull market has peak. has volatility reached its highest level? that erased the weekly gain as it headed for a 16% loss. the new chief executive of tesco will face shareholders for the first time at the annual general meeting. dave lewis took up the role last

september less than a month after a 2.3 million pound whole was discovered. he is expected to face investors questions over payouts by the former executive. when it comes to german corporate's, it is not just greece that weighs heavily, what is troubling germany inc.. what are the issues? the dax is the worst performer. >> it is the worst performer this quarter compared to all the major indexes. there is a real sense that a lot of big german companies are enduring increasing problems and had to change tactics a little bit. >> and what do they have to do? what are the companies that have been slowest to react to their competitors? >> in the story we put out today

compiled a list of six big iconic names. they have been slow as the competitors. it is a classic example of germany being slightly behind the curve or a lot behind the curve. caroline: how does this all fit into the broader german context.

a growing chorus of economists who talk about needing another version of what was introduced a decade ago, there is economic and social reforms to bring germany forward. increasing number of economists say they need an agenda in 2020 versus 2023. caroline: thank you for running is to that great story. the company be estimates last night. i am a vague addict.

the concept is low membership high intensity. you come from a family of gymnasiums. you helped drive others and expand in europe. why change direction? >> one rebel was born out of rebelling against the old practices in the fitness industry that have gone on for too long. we believe it restores the balance between us and the customer. we believe that the luxury brand is part of the industry.

we want to take this apart very strategically and we want to work with the best landlords and iconic buildings. not to sacrifice it for quick growth. we have been lauded with great accolades, it sets the high standard we got to live up to and make sure that we grow in the right speed and the right way. caroline: nike is doing very well in the u.s. and western markets but the emerging markets, not quite so stellar. what are the trends and where would you take this concept next? >> typically the trends will always come from the u.s.. we have been lucky to be one of the first adopters in the you creek -- in the u.k.. when we look overseas there are very attractive markets. as one rebel, we would look to franchise markets. >> you don't mention anything in continental europe.

is there a special reason for that? >> when you look at something like 1rebel, we look at income. in these city states where there is a dense population look at dubai, singapore hong kong they fit the mold a little bit more than continental europe. caroline: i am also intrigued by the competition and some of the new ways that we are using tech to get into fitness. berries boot camp has been -- barry's boot camp has been the other petition. -- competition. are they your main rival? >> the market is booming and there are a lot of people trying to open boutique studios. we are happy because we know more than ever that this is something people want. we have been trying to rebel for

so long. when we look at the growth industry, we are happy to be a part of it and we think that we are leading the way. the biggest changes we are coming out of our things like class pass. i'm not sure they know it is coming. caroline: it is an app you can download that allows you to use boutique on an unlimited basis. it is what 80 pounds or month? -- per month? what is this trend, we use the phrase health and wealth, is this hot right now? >> people like to be associated -- be associated with being part of a new trend. you just have to look at instagram or twitter to realize how enthusiastic our customers are. month on month double-digit growth. fashion and wearable tech is

part of this trend that is going across the world. caroline: we were talking about the risk of a brexit. what about building a business in the u.k.? how have you found access to finance and places that you want to grow the gym within? >> london is one of the most vibrant economies in the world. we crowd funded and we raised 1.5 million on crowdfunding last year. we raised one million in just 10 days. with the eis tax benefits, this has been a fantastic journey and we will go back to the crowd again. caroline: maybe you will lure michala to have a look at your one-hit wonders. james balfour, host -- cofounder of 1rebel. that was fascinating.

remember, the tesco chief executive having a tough time.

caroline: it is 8:30 in frankfurt. time to check on the fx markets. all eyes on the euro. after those talks stall they will be beating till saturday. they are getting to know each other infinitely well and you get to see whether that gets signed off over the weekend or whether a deal can be done. it has been trading lower for a couple of days. many are feeling that they are casting their attention on what happens after a deal. whether grexit or remaining in the eurozone many feel it could fall to parity.

we are hearing that from many who are calling parity by the third quarter. looking at the rate differential you will see rate rises and in europe you will see quantitative easing until at least september 2016. we are on call for the biggest weekly drop for the euro in one month. a bit of pressure. let's have a look at some of the -- after emergency talks failed to yield a breakthrough in the bailout. the meetings were of decisive significance. they told their finance ministers do everything possible to strike a deal. the deadline looms. a scandal hits tesco, the chief executive will face shareholders for the first time.

dave lewis took up the role last september less than a month before a 263 million pound hole was discovered. he is expected to face investor questions over payout. two jpmorgan chase units sued executives -- seeking a court order blocking them from enticing coworkers to follow. the six are accused of stealing trade secrets and breaching their loyalty. the u.s. district judge has said she will begin considering the issue next month. we have just under a half hour to go, let's take a look at how futures are pointing. we are currently looking to open lower once again. if you focus in on the bloomberg screen, we can see that they are

pointing lower. looking at the futures indicating where we will open. the dax and germany is the worst performing index in the last quarter. we will likely see that down by .6% as well. that optimism is filtering away. we are seeing concerns in the equity market. check out where we are seeing bond trading. the german bonds falling this morning. the german yield off by one basis point. that means the rising yields are falling and money going into germany and coming out of spain, italy, greece and that's like era of contagion wondering what are could really be moving toward the exit in the eurozone and what would that spell politically. let's look -- euro stock volatility. the fear index here in the

eurozone, we have seen volatility year to date down but over the last two days rising in the eurozone and the united states. the stoxx currently up 9% and up 15% the vick in the u.s.. let's turn our attention to asia where the shanghai composite has a lot of volatility. it has fallen 7.7% and is headed for its biggest loss since 2007. >> the falls just keep on coming. you can see it is on its biggest two week decline.

that high could have been a peek. where we are seeing a lot of money coming out this from the sectors where we have been seeing a lot of gains over the last six months as you might expect. they are looking very expensive at the moment. technology down by 9.75%. technology equipment down by almost 10% and the industrial space under quite a lot of pressure in china. down by 9.4%. despite the fact that we are seeing all of this red on the board in china before it opened

this morning before being suspended because it hit that daily limit. moving away from the shanghai composite which is seeing significant faults today, we have australia which has closed. woolworth not one of the major supermarkets did manage to do quite well. japan is also closing lower by about 0.3%. its highest close since 1996. and south korea mainly thanks to pharmaceutical stocks and we have the hang seng in hong kong down by 2%. it is all looking very ugly in particular on the chinese market today. caroline: juliet in hong kong, wishing you a good weekend despite that rather read and to the day.

i want to talk about china because we are suddenly seeing this worry. we talked about it for weeks if not months. but seems to be coming in. they are using leveraged money to buy the stoxx, is this the beginning of the end? >> we have seen a spectacular run up in chinese equity prices. even with what is going on your today, we have to see it a little bit in the perspective of what has been happening. to my mind there are a couple of things that are going on here. the underlying chinese economy is going through tremendous transitions and those are some of the things that ultimately the markets will focus on. some of the more fundamental aspects going on. there is a big reform of the capital markets. it is a longer multiyear process. we are seeing some of those things happening in the local

government. we are seeing as well a will from the authorities to develop the equity market and the key thing is to develop the equity market what you don't want is these really big spikes up and corrections. you want something that becomes more stable over time. to my mind what is happening now is not a bad thing from a long-term perspective a bit of a healthy adjustment to something that was quite spectacular to watch. caroline: what about the imf endorsement? this is something of an opening up of the market. will it happen by 2015? >> there is a good chance that it could happen this year and that is white important because it is not an overnight revolution but it will have important implications for the development of the chinese capital market and the international role of the

currency. it is all part of a longer process. it is this all structural reform that is so important globally and ultimately it is also very important for the short-term stability of financial markets. one of the key element is that we have not seen any kind of effort from china to seek currency depreciation. i think that is a key element of global financial stability. there are a couple of reasons why china is not actively pursuing currency depreciation. it has been a policy where the side effect has been a desired outcome for other countries. one they should join the sdr china's own financial stability, and the asian region for the global economy as a whole. caroline: what about the rest of south east that seems to be the areas of growth.

china looking pretty good. the rest of the emerging markets, less so. what do you see for asia in general? michala: a little bit of a mathematical secret the chinese growth. he's in as it slows, because it is growing more strongly than the rest of the world, china's share of the global economy continues to grow. it is not a bad outlook, we are looking for growth in the region, but some of those impressive numbers that we became used to are not in the prospects. it is a slower growth story and as we turn it to emerging economies more broadly, what has been happening has impacted a number of economies, but the distinguishing factor is those economies that can successfully achieve reform is where the growth becomes. caroline: let's stick with that

theme of opening up emerging markets. south korea plays into our next story. dave lewis facing shareholders for the first time today as the supermarket tries to recover from its biggest annual loss. m&a and disposals is what we're looking at today. potentially update with disposing of the south korean business. but for the twitter question of the day is tesco itself a target? >> it is an interesting question because you just saw one of the biggest growth retail mergers and a decade with apple and belgium. that was one of the questions i have been asking people and the market isn't so easy for consolidation in the u.k.. so that looks slightly less likely. we've seen activists and investors coming for them as well. they themselves have said they are looking at selling out. they're looking at clamping down the number of stores that they have so they are already doing

all these things but south korea is interesting because it is their biggest international peace of the pie. it accounts for 90% of the group sales and just yesterday we had in a story saying they were coming for that. >> but tesco is under a bit of pressure because we have seen buyer-seller disparity in terms of what they want and what the market is willing to pay as well as for downtown be. there are saying they want more than 7 billion for the assets whereas buyers are saying we will look at 5 billion. tesco is the same. we were hearing 2 billion pounds and now one billion. the thing to keep in mind is a still have a debt hole of $34 billion. one asset disposal here and another one there will not make fantastic difference. that being said, if you look at the numbers today, dave lewis

has a bit of reprieve because of the smallest decline in even a year and investors and analysts are going to take confidence in that. it makes it slightly easier for them. caroline: we were seeing volumes pick up but still what about the equity side? you cover ipo, equity sales. there was some pressure for general rights issues. >> even the latest analysts know they haven't talking about the rights issue. if they get south korea -- we heard sources tell us they want to try to get it done by august. if they are showing an uptick in sales or growth on the that might take some of the pressure off. at the end of the day investors don't want the shares to go down yet again. and shares have got up 15% this year, so there was some optimism that all of the steps they said

that they would do would bring some reprieve for the company. caroline: do you think the u.k. economy will continue to support markets such as tesco? michala: in the short-term, the outlook is quite favorable. headed into 2016, we are a little bit below the consensus. also, hartley to what we see as an uncertainty factor from the referendum we were discussing earlier. caroline: wonderful avenue on the show throughout the morning. helping us talk through what was up with tesco. a reminder of the twitter question of the day. do you think that tesco is a takeover target? we are back after this break. ♪

caroline: welcome back to "countdown." it is 7:47 here in london. here are other stories you need to know. euro area finance ministers will meet for their fifth session with greece in just over a week. talks yesterday failed to issue a breakthrough. angela merkel said that saturday's meeting is of decisive significance. she and her counterparts have said they need to do everything possible to strike a deal areas the new chief executive of scandal hit supermarkets tesco will face shareholders for the first time. dave lewis took up the role last september less than a month after a 263 million pound whole was discovered. he is expected to faced investor

questions over payouts received from former executives. and the u.s. supreme court has rejected the latest. in a 6-3 ruling, the court upheld the nationwide tax credits used by people to buy insurance. especially within the republican party which has opposed the law from the start. just a few minutes to that european market open. let's get some analysis from the head of trading at t.j. m partnership. in the multi--- welcome gentlemen. i want to talk about the volatility we are seeing in the market, or the lack thereof. the asset stock exchange is resolutely still up but we are starting to see volatility in the euro, in the bonds and in

these stocks. >> i think getting close to a deadline, clients are taking risk off the table. what we saw in the last 24 hours or so from the eurozone, or greek prime minister or members of the cabinet there are in there are clients who are taking money off of the table and they don't want to be exposed going into this weekend. caroline: is it equities? >> you are seeing some money coming out of the euro as well. it has the potential to come back down aggressively. it is a variety of assets and commodities have been week for a while anyway. they are taking some chips off the table. investment grade. the notable difference now is

you're seeing investors allowing their cash allocation to increase. in this attitude toward the market, short-term. the comments coming up have been a little bit more negative or cautious. there is a debate out there that even if we get an agreement or deal, how much it ability would have? how long would the rally last? most people say it is a fudge rather than a long-term fix. we could be here looking at the same exact issues unless we get some kind of sustainable concrete outcome and that will require debt relief and a much more long-term view rather than i can pay you back tomorrow. caroline: what do you see that is unaffected? >> if things do kickoff negatively, i don't think there are very many plays.

on the s&p trying to creep up aggressively as well. i think the market will be affected overall irrespective of which way the decision outcome comes out. it is difficult to maybe position correctly and the best bet is to wait until the deadline is over with. caroline: seeking protection in credit default swaps? >> credit default swaps is more of a short-term sentiment reflection. there is very little liquidity on the cash bond side but certainly the secondary market. we are tightening on headline risk. caroline: marking their books. >> very little volatility behind it certainly you are seeing significant pickups in volatility.

basis point swings on crossover and that is more reflective of short-term sentiment. the market will rally if we get an agreement this weekend, but it is how but goes before it fades a little bit. caroline: tesco, your takeaway? >> better than expected. you would have thought that they would struggle a bit with retail price is coming back down, but they seem to be on that recovery path. we might get more in the ledger this morning but their recovery play, they still have the accounting scandal hanging over them. we're calling them up around 2% this morning. that is not bad. >> small steps. the credit markets are still very good. looking at a macro environment. there are still many arguments white of corporate credit risk.

caroline: thank you for joining us this morning. tjm partnership and simon bellard, credit market strategist. a few minutes ahead of the european equity market open. features pointing lower across the board. up by 6/10 of a percent. the dax with similar moves lower and as if i magic the man in the next hour, mark barton. what a lineup. what are we expecting? mark: i am so excited. the chinese market a whisper from a bear market. we know a bear market is a 20% decline. we will be asking about that. tesco, smaller sales decline for

almost a year. the hedge fund manager holds the shares. we will ask her, is it time to accumulate shares in tesco? and the wimbledon champion in the past, stefan edberg, 8:30 and mark barton. battle of the tennis giants. caroline: you're calling yourself a tennis star? mark: yes. he is the coach of roger federer. is roger going to win this year? caroline: good to have you all on. that is it from "countdown." ♪

mark: good morning and welcome to "on the move." we are moments away from the start of european trading. let's get straight to your morning brief. stocks in china tumble as mounting concerns that the nation's bull market has peaked. it is set for its biggest one-day fall since 2007. no rest for greece. eu leaders may be meeting for the second day of their summit in brussels. they won't be talking about greece. saturday has been earmarked for that discussion as the june 30 deadline looms. a change of light.

tesco reports a smaller than forecast sales decline. the new chief executive is still set to face tough questions over an accounting scandal, executive pay, and asset sales. that's what we are watching. let's check in with caroline at the touchscreen. caroline: good morning. we will see how we are opening on the equity markets. it has been a down couple of days. suddenly concerns springing into investors' minds when it comes to greece. will a deal be done? they are meeting for the fifth time in just over a week. these people are seeing each other more than their own families. they are trying to get to an agreement before june 30, when the bailout agreement comes to an end. can they extend that? can greece make that payment to the imf?