>> greece becomes the first advance economy to miss a date of payment for the imf. if it fails to meet the one in 5 billion euro obligation -- 1.5 billion year obligation -- it's very future in the eurozone hangs in the balance. >> ruling out the return of talks with greece before this weekend's referendum. but they will discuss a bailout for the indebted nation today. >> the chinese manufacturing a signals a response to the stemless in the world second-biggest economy. japanese manufacturers

unexpectedly improve. >> welcome to "countdown." i'm guy johnson. >> i'm an edwards. -- anna wedwards. let's start with what is happening in the currency markets. our investors to complacent about the possibility of a grexit? greece has missed a payment for the imf. the bailout package has expired. perhaps the turmoil is contained. perhaps it is all about central-bank policy and not about what is going on in greece. you could see the format at the start of the week. let's check what has been happening in the equity markets as well.

looking ahead to the referendum that seems to be the next big line in the sand if you like. the stoxx 600 is down. the worst three months since 2012. put that into context of the full-year. your today, we're still up 11% on the stoxx 600. the twist and turns of the greek story are leading markets on a roller coaster. investors seem to be on a slightly perkier know. -- note. trades in the u.s. coming up better than estimated. s&p up. greek nervousness still pervades

the u.s. markets. let's get the latest allotments on the ground. guy johnson is there. also, i've nichols is in relation. >> greece is making up to a very different story. it has joined a club it didn't want to. it joined zimbabwe and a host of other nations that are delinquent to the imf. it is not a place you want to be. the payment missed last night pretty much as expected. we sigh rally of a few thousand people behind me supported the idea that greece should remain in the eurozone. it was raining. he felt a bit like northern europe. it was interesting hearing from the mayor of athens who is leading the charge in terms of

this idea that the country should remain an eu member. here is what he had to say. >> we want to stay in the core of the eurozone. i can assure you we are going to have -- >> there's a feeling last night that maybe he was about to get his wish. there is a last-minute effort. application member -- an application made that would allow greece to effectively dodged the bullet. we'll hear from hans a minute. angela merkel quickly slammed the door on that. where getting pictures outside one of the banks. we have got a subsection of the pension community able to collect pensions. pension starting to run very

high. we have had reports of a bit of a bust up on a bus down by the coast. they are did but who is responsible. pension is limited to 120 euros a week if they have that kind of money if that -- in the bank account. many have access to atms. the banks are really front and center at the moment. we have got this ecb meeting coming up. that could have a meaningful impact on the course of why -- where greece goes next. >> speaking of that ecb meeting they're watching for news coming out of that meeting today. >> is all about haircuts. greece has been on emergence and liquidity. we now find ourselves that greece is out of the program. that puts the ecb in a very

delicate position. we'll see whether we can increase the haircut. if they do that, there is some concern that it could have a very detrimental effect on one of the big four banks here. if they could get through this week i think that will be a big step in the right direction. it is still an awfully long way to go. i think that would really of the anti-in terms of -- ante in terms of the general population. >> thank you very much. hans is in berlin. where do critics stand? remarkable events over the last 24 hours. >> creditors are united. they have rejected the two-year extension. it was a request for a blank check for 30 billion euros. it was a remarkable afternoon.

at first there was confusion and then there was clarity when it became clear what greece was asking for. the eurogroup president and finance minister put it it would be crazy to even talk about a future in further financing. >> all of the proposals have been reject it. the greek government has called a referendum and advised the people to vote no. in those circumstances, it would be crazy to extend the program. that cannot and will not happen. the program has expired. >> angela merkel was just as clear. she said we will negotiate "absolutely nothing until that referendum is held." from her site, there isn't going be much negotiation. not until there is a referendum. she did leave the door open to future negotiation. >> this evening at midnight the

deadline for the program ends. i have no notice of any other relevant facts. we will not cut off the lien of talks. we would be the european union if we would do that. that means the door is open for the line of talks. this is all i can say right now. >> that line will start again. ministers have an 11:30 a.m. conference call. greece is showing some signs of i won't say good will, but they're offering more information about what they want to do and are crucially dangling out the possibility they will either change the terms of the referendum or that they could advise voters to vote for. i haven't said what the final recommendation would be. that is where negotiations are right now. it is the payoff to pay off debt . it would include a conversation and language about debt restructuring. this is overall debt. it is not anything that actual

economic reforms. that means that it is a nonstarter. talks are happening today. unclear of how many -- how much substance there will be. two quick notes -- merkel's meeting in berlin today. we will be watching up it also it germany is proceeding with their own budget. and immediate projections. it may need to be altered. >> thank you. hans nichols in erlang. -- berlin. let's see how they are relating to the latest twist. sluggish start to the week.

david, good morning. >> good morning. demented u.s. market overnight -- you mentioned u.s. markets overnight. it is extending what we saw in wall street overnight. it is a little bit better. doesn't seem as if there is a lot of uncertainty out there. the focus is too big data points. first the tankan survey. arguably the best measure for corporate japan. very encouraging. you dig deeper. not everyone is enjoying the party.

the bigger players are in smaller companies. another takeaway is the figure. we will dig -- they will dig deeper into their pockets. keep my, corporate japan is sitting on 2 trillion u.s. dollars in cash -- keep in mind, corporate japan is sitting on 2 trillion u.s. dollars in cash. stabilizing but not firing on all cylinders.

as you can see, i have a two day chart here. don't let this -- that is a 3% swing here for the shanghai composite. compared to what happen yesterday it which is an outlier, this swing, that 11% and you look at the change in the market cap to what happened that is roughly the size of the entire swedish economy. now with that said, we are down 1.4%. we are entering that afternoon session. we quickly, let me end of what is have been in the on markets right now. it is a mixed picture. you're looking at the 10 year yields right now. back to you.

>> thank you. david eingles in hong kong. tensions are running high. things look peaceful in the pictures. i cameras in the foreground. many are assembled outside the bank trying to get into the banks. banks have just opened. some people are being allowed in. idea was that they might be able to get into claim their pensions this week. it'll continued -- real content to monitor the situation in greek. we're talking too many investors. grexit is a possibility. we were hearing different forecasts. other have given it lower numbers. get in touch and tell us what

you think. our investors to relaxed about the possibility of a grexit? stay tuned to "countdown." ♪

>> welcome back. 17 minutes past 6:00 in london. china's factory output remains sluggish despite monetary easing. the next came in at 50.2. it still indicated an expansion, but was below estimate. >> large manufacturers in japan have approved. tankan rose to 16 from 12 in march. >> greece has missed a payment

to the imf, making it the first advanced economy to do so. the last minute request for a new to your rescue package was rejected. angela merkel said the be no new negotiations after this sunday's referendum. capital controls remain in greece ahead of a vote on sunday to the greek evil will be asked to accept or reject concessions from creditors. -- greek people will be asked to accept or reject concessions from creditors. we have early pictures of the crowds gathering outside the banks. >> they were here. there were lines and at times it was getting quite heated. there were a couple of police officers here. never just the long line of tensions. he told them only people would

be able to get their pensions today. things are calm right now. these are the other branches they could get to. they have been letting them in through the door. they have all gone through. people are just being let in. the turn of to go inside the bank -- they are going inside the bank. the average greek pension is 655 euros. that is about 30% lower than what they would ordinarily be able to get. the pensions are frustrating. certainly this is the national bank of greece. darwin thousand branches we are expected to be open today --

there are 20,000 branches we are expected to be open today. now things are calm and proceeding as planned. >> last night it was a concern of the antigovernment brigade -- what happened? >> i have to say that unfortunately for those in favor of the no vote for the yes vote -- we have got a poster here for the no vote. those supporting the yes vote are going against the government of a grexit. it is a washout in a little sense. there are about 10 or 12,000 who were packed in the square. within about an hour or so, the crowds dispersed. by 10:30, is pretty much all over. that is in comparison to the night before which went on until midnight. there are many people there that

were expressing themselves indefinitely want a yes vote in sunday's referendum. >> i hope that they vote yes. the only other option is disastrous. it is the best possibility for us, the youth. we are 25 years old. we have described weighted. -- graduated. >> absolutely against the government. >> right. >> we need europe. we cannot to stay all alone. we cannot be out on the side of europe. >> what happens if greeks vote no? >> let's hope not. catastrophe. that is what we think. >> i'm not supporting it. >> i wish to be part of europe with better conditions.

>> we need calm and peace of mind. i'm going to vote yes. we are in europe. we should be european people. >> it the boat is -- vote is no and greece is no longer part of europe -- >> i don't want. no. it should be yes. >> some of those pensioners are emerging on the banks with their 120 euros. many journalists here. back to you. >> such is the way. thank you. elliott in athens.

in terms of how the greek drama could play out, we will be hearing from wolfgang shoretel -- wolfgang. we will also hear from the euro growth finance minister who will have a conference call to this gusts greece. the conference call is set to take place at around 4:00. the ecb governing board will meet. banks could be in question. joining us now for more on the greek situation is a senior fx strategists. think you for joining us. greece is unpredictable. a grexit is not likely.

is that still everyone's case? >> others were saying it was inevitable. [laughter] i think basically at this stage i would put it around 64. it is kind of interesting, the change dynamics in recent days. now they are pretty happy with it. the yes vote is more likely. no only do you get -- basically means they will call on a reelection. it is interesting. >> phil try to cast his vote is a vote on euro membership. >> it is exactly what they are trying to do. it is not unfair to say that. it leaves them in a pretty difficult situation.

were that to be withdrawn indicates a grexit pretty effectively. >> for asking if markets are being too relaxed? do you think markets are too relaxed? what it really wouldn't be a surprise. they have basically able to plan for this for months and years and so on's. literally over a weekend we had a anchored see. that is not really the case. the other aspect is that most greek debt held by public institutions -- they won't have second ground effects.

>> he thought this had more to do with the different policies on both sides of the atlantic. that is playing as well, isn't it? rex without question -- >> without question. they might say, the best case is september. >> peter kinsella t you. coming up on "countdown" get in touch with the program on twitter. you will also hear peter's thoughts about the possibility of a grexit. get in touch with us. our investors to relaxed about the possibility of a grexit? some are putting it at 60%. what are your thoughts? we would get the latest from tokyo as manufacturing confidence improves for the

first time in months. we look at the japanese take in a couple of minutes time. stay with "countdown." ♪

>> welcome back. half past 6:00 in london. let's get you up to speed and what is happening in the markets. you could see -- backup around the 11.1.40 level. we pick up with our guest during the program. the euro is holding since 2014 at let's have a look at what is happening. it seems that yesterday we saw european markets pretty negative

by the close. the u.s. session was a little better. the asian markets picking up. the shanghai composite doing its own thing as it sometimes does. it is mixed in terms of data. here on the stores need to know. greece has missed its payment to the imf to taking at the first advanced economy to do so. and laugh -- last-minute request for an extension was rejected. angela merkel said there would be no negotiations until after this sunday's referendum. capital controls remain in greece. the greek people will be able to accept or reject conditions for new bella package from creditors -- for a new bailout package from creditors.

labrov said procedural issues needed to be -- lavrov said procedural issues needed to be addressed. he added even if -- division between the u.s. and iran remains. we have better news from japan overnight. sentiment among large manufacturers has improved for the first time in three quarters. the index would remain unchanged. we will speak now to achieve economist who joins us from tokyo. good to see you this morning. japan's economy is gaining some momentum then? >> not exactly.

certainly it is good news as these things go. it is great that corporate executives are feeling optimistic. the economy has had a very choppy run in recent months. in many ways when do executives begin to translate this optimism into higher wages for workers? the nikkei is rising. it is kind of bumping higher. the question is when companies begin sharing wealth with the workers. that is what we haven't seen. it is aced on a week yet -- based on a weeken -- weak yen. it is great that executives are more confident. if you just may be two months for number six months for now we will see better wage increases. we haven't seen that yet you that is a crucial part. >> what does that tell us about monetary policy on the bank of japan?

>> it is complicated at the moment. if graced as crash we might see the -- if greece does crash, new might see the yen skyrocket. we will see the doj doing more. i expect them to ease more as the year goes on. the government is from a structural reports -- reform simply -- the doj for better or worst is the only game in town. you will see them do more. that is my expectation. >> ready is japan for any contagion might come? are they trying to express any fallout? >> >> i think for japan, the real

key is china did they have by far the largest region in the economy now. if china wobbles, japan is in trouble. japan has been exporting a lot of its foods to china. china you could argue is more important to japan now that the u.s. is. the many ways, i'm not sure this recovery we are seeing is durable enough to sustain any kind of contagion from greece. a good higher exports going forward -- it could hurt exp orts going forward. it will be difficult for emerging economies. the key is china. i think it could be a very rocky one for japan and north asia in that regard. >> thanks for joining us. let's get back to the latest on

greece. greece has missed its imf him and. good morning. european finance ministers will be holding a tele-conference later it was we expect? >> that's right. they met yesterday i teleconference as well. they have rescheduled for today. last night, they are in part of the program expired at the same time that greece missed its imf payment. there is a proposal that is -- was on the table is no longer there. the requested a two-year extension coming to your program under a different program in the eurozone infrastructure, if you will. it'll come back today and talk about. last night, the requested this program.

the eurogroup has insisted that the economic reforms be part of any program that extends toward greece. there is no talk of that in the submission. they have asked and will reconvene by teleconference later on today and a more talks about that. >> what does it mean after we have missed the payments to the imf? it seems things are moving very quickly yesterday. >> it is a very complicated and fast-moving situation. the fact that they missed the payment makes it that much more dire if you will. as for the talks, we kind of anticipated this.

it doesn't have any effect on the cause. what it will have an impact is the ecb. it is going to be discussing the status of emergency liquidity. the country has missed a payment. it will be a big thing to discuss in terms of where they stand and continuing or possibly increasing the amount of the quiddity they're getting to the bank. >> voting yes -- with that trigger an automatic extension? i'm guessing it would be automatic. >> right. it is a little comforted here as well. we don't know what exactly the question is going to be on the referendum. this was the proposal that was on the table last week when he

walked away. i need to give this to the people. the exact wording of that referendum has not been decided yet. they're framing it as a vote on the euro. death can degree people to say different -- they are saying to the greek people to say we want to be in the euro and are campaigning for a yes vote on that. we'll be a basis to restart that negotiation. it will be a basis to have a restart of the talks between the creditors and degrees. >> thank you. the spring and our guest for the next hour. let's welcome in our next guest for the next hour. welcome. this latest poll puts that no vote ahead. one thing we have learned from

the u.k. election is don't read too much into polling. this is just one poll. it be more later on today. what are your thoughts around this referendum? >> it is obviously crucial for greece's future. the question being posed is a very complicated and technical one relating that to the deals that were on the table. between the creditors -- the deal was rejected by the government. the europeans governments and this referendum is about the future in the euro. yes we want to stay in the euro. no as in we want to leave the euro. the opinion polls between now and sunday are going to be a great influence on the market.

it is important. indications have been there would be a majority -- a small majority in favor of the escrow. -- yes no. -- yes vote. it is quite an interesting and worrisome development. >> the no vote lead is declining. perhaps that is yes momentum toward the yes vote. perhaps we believe that one for the moment. let's talk about the firewalls that have been put in place to protect the rest of the european economy essentially from any fallout with the greek situation. are they standing up well so far? or have they not yet been tested? >> i don't think they have been fully tested yet. but so far, so good.

portugal, spain italy we have seen yields rising there, but nowhere near the source of increasing have seen back in 2011-2012 when we last had the crisis. that was before the firewalls were introduced. the ecb hasn't really had to say very much about it. policymakers have discussed our walls are in place -- are firewalls are in place. i think that we cannot say there are impacts at all. contagion so far is being contained. >> thank you. are investors to relaxed about the possibility of a grexit? we get thoughts on this as we go through this program. finance with or if you would

like to get involved -- find me if you would like to get involved. >> we are seeing exciting strong growth in china. it was within our top 20 markets five years ago. >> that was a clip from our exclusive conversation with natalie massenet. one that when we return. ♪

>> welcome back to "countdown." here at the stories you need to know. greece has missed 1.5 billion euro payment for the ims. making it the first advanced economy to do so. a request for an extension was reject it. there would be no negotiations until after this sunday's referendum.

capital controls remain in place. great people will be asked to accept or reject additions for new bailout package from creditors. >> we had news overnight from japan. the bank of japan tankan index rose. it is within reach. lavrov said only procedural issues needed to be addressed. drafting a final agreement. beginning in washington, barack obama said the u.s. would walk away if it was a bad deal. >> negotiators have given themselves another week. let's get further details on the

iran situation. ryan chilcote towards us with more. good morning to you. how close are we? >> i'm going to get caught up for saying this, but we are getting close. we had the iranian president and the iranian foreign minister and the head of the nuclear program. we haven't had the head of the global watchdog which has a very acrimonious relationship with the iranians right now you need to get into the nitty-gritty of how verification is going to work. the fact he says only procedural issues remain was important. a month ago i set down with him you he was skeptical we would get a deal. now everyone is saying july 7. when you change it and if you don't need it, you look really stupid, right? [laughter] >> is speak from experience? >> yes. [laughter] >> the devil is in the details.

the most important individual for all of the negotiations is the free leader of iran. he treated a picture of the negotiators today and called them crave -- brave men who are trustworthy. if he is doing that, people are speculating that means he is behind this process. come next tuesday, we will have a deal. congress could play with it for a little while. >> where does this leave us? >> iranian oil is an orton. have a quarter of daily consumption sitting on nine ships off the coast. six months later, let's say you are playing ball. that will go out to see and go to market. it will take a while to ratchet up productions. if you look at what is moving

the price for now, it has everything to do with iraq. last month coming back of an increase production by about half one million euros. that is almost as much as what they will bring to market. they did it in one month. look at all of oil pack -- pi oilpec. they are pumping like there is no tomorrow. yesterday we had a survey out saying week on week, the amount of will in the u.s. was going to drop. then api said actually, we expect it to increase. we will see what happens when we get the numbers today from the statistical department from the department of energy. it doesn't look like it is actually decreasing.

that means prices won't go hide any time soon. >> thank you very much. is that your thought on this as well? >> i think there has been a lot of speculation with iran coming back into the picture. we could see a further rise. where little bit more cautious. we think given that there has been such a long period of sanctions in place that it will take a while. that might disappoint some of the expect haitians. >> thank you. let's go to our bloomberg exclusive conversation. let's listen in to a clip. >> simultaneously growing new market and in inorganic way.

we make sure it is appropriate. then we have a market with a certain threshold. without local marketing teams. we do local service initiatives. those markets are where the pockets of well are. it is very strong. >> what about people in china? >> it depends on who you are talking to. we are not a hard goods company. we are a fashion company. in mainland china right now the e-commerce transactions tends to be much lower.

the consumer is well engaged in e-commerce. the time will come when they turn to e-commerce for different things. we are -- we are seeing exciting growth in china. it was within our top 20 market five years ago. it will be within our top 10 within the next few years. x and competitors. >> as part of our in a is the sense that are consumer has so much. we always need to improve ourselves. i know it is cliche, but we see ourselves as the toughest competition. let's take a vacation. i think that the brand is going direct to the consumer is a fantastic thing.

the brand has to have a strong presence online. we are a multibrand retailing. >> the shirt to cap -- be sure to catch the full interview this evening. let's get back to sarah, our guest. he is saying that the toughest -- germany is not the toughest on greece that a lot of internal workings about european politics. >> certainly. the greek government made mistake early on in negotiations by trying to bring the smaller countries on to their side. the last thing that they want is to find that greece is going to get concessions and they have to explain why get have to pay the the eu debt that they have owed.

>> there are different stories to talk about. good morning. good to talk about oil from a different angle. what have you got from us -- for us? >> we have a very interesting story by men who is a ceo of a come any. when he retired, he decided to go to harvard divinity school, which is probably not the road most take. >> no. i'm not sure it is. [laughter] there's also a good debunking of myths story. >> yes. there is a really interesting story. in the story came out yesterday. more than 50% of all u.k. household received more in benefits when they paid in tax. he decided to find out what is really going on here.

when he sort of get under the hood and look more was the attic, you realize that the way they do find that terms is actually not the way most people would. things like health care were all defined as an offense. it wasn't intimately included in most definitions. >> uber has been running into a few headaches in various parts of europe. what is happening in france? >> we all read about tires burning and brought in for questioning. they were saying what france is doing is probably legitimate and probably even right to question uber. things like the way they operate is not transparent. there is a number of points that amy, all of which are pretty valid. >> thing -- thank you very much

kid we will take a short break. back after a short break. you can see pictures from athens. greeks i gathered outside there is banks. more on greece when we return. ♪

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anchor: greece fails to meet a 1.5 billion euro obligation. the future in the eurozone hangs in the balance. anna: the german chancellor angela merkel rules out a deal before the weekend referendum. a chinese manufacturing gauge signals a sluggish response to -- while japanese indicators

unexpectedly improve. guy: welcome to countdown, i am guy johnson. anna: and i am anna edwards. the u.k. commission on airports has approved another runway at heathrow. let's get back to the markets. this is a picture of what is happening on the currency markets. their blip at the beginning of the week when the euro fell. since then, it has regained stability. our investors to complacent about the possibility of a grexit? you can give us your thoughts. let's give the context around market moves. it seems the equity markets had another nervous state. a second day of weakness. we have been looking ahead to

the referendum, the next big event for the greek story. the stoxx down 7.7% real. we are still up 11.3% in the year to date on the euro stoxx 600. u.s. markets, as you can see moved higher. up by 0.3%. we are getting developments on the reports. the u.k. commission coming down in favor of heathrow, it seems with regard to airport developments. the new expansion option. heathrow is the best option they are saying, and this is a

recommendation from the airport commission. they were revealing where it should be placed. they are leaving the final decision of the controversial expansion to the prime minister. a third heathrow landing strip to the northwest of the two existing ones presents the best case. that is according to the airports commission today. this might not be the end of the story because the final decision rests with the government and it could be be politically charged 100 guy johnson is in greece. let's go to you, guy. what is the latest on the big picture story in greece? guy: the banking story is getting quite interesting. there are a number of angles we need to take a look at.

we saw a pro eu rally last night behind me. it was raining which dampened of the enthusiasm of a little bit. we are starting to get some polling which suggests the no vote is ahead. the lead for the no vote did narrow significantly after the banks closed. what we are hearing is that it is a fluid situation and the polling is changing quickly. this is historical too historical to hang your hat on. the mayor of athens is leading the yes campaign. >> we want to stay in the core of the eurozone. i can assure you, i am frustrated. we are going to have a victory.

guy: everybody is going to be watching to see what happens with the banks, especially the ecb. they will also be watching me eurogroup meeting. we have tried to track him down. he was in the finance ministry. the press get a little heated in terms of how they try to doorstop their pulled petitions -- their politicians. take a listen and what happened as he made his way to his motorbike. it was quite a pushy, shovey kind of affair. i try to ask him if there would be a deal today. trying to get my microphone up to him. he said, there is still an opportunity. he goes and talks to his

eurogroup colleagues. we are looking forward to hearing what they will say. some discussion here as to whether or not there is disagreement within the government. whether key figures are not as behind as they first imagined. whether they supported the decision to go ahead with the referendum. the guy you are looking at now probably did. certain other key members may not have supported the decision. anna: need some sharp all those in athens. will greece be watching news out of the ecb today? guy: we will get the details in a moment. from the greek angle, there is fear the haircuts and will be increased and are that will put pressure on the greek banks. maybe you could see one of those banks being pushed to the edge. that is one of the serious

concerns here. there is talk they will open next week. that remains to be seen. anna: paul, what can we expect from the governing council today at the ecb? what support will they continue to give? paul: that is the 89 billion euro question. do they extend emergency liquidity assistance? do they make it tougher to get, raising the haircuts? there was a speech yesterday where they said, we will talk again about ela tomorrow. you could pretty much here the sigh in his voice. this is a scheduled nonmonetary policy meeting. these things used to be relatively and oculus. lately, they have all been crisis meetings.

here we are again. anna: paul gordon joining us with outlook ahead. breaking news through from south africa. evan minutes past 7:00. -- seven minutes past 7:00. south africa is selling their stake in vodioocom. they are selling the stake because they need more money into the energy provider in south africa. when i was most recently in south africa, this was being talked about. it should not be a surprise for the markets. many were asking how the government would find more money. selling the stake in vodocom might be the answer. let's look at asian markets. shaking off a sluggish starts to the week. david ingles is in hong

kong. david: a lot of news across the region. it would be a mistake to think there is no big event happening. you take a look at this, volumes are thin. we are at the highest point of the date. a few more hours let me zero in on the market here. the boj comes out and does the survey, 200,000 companies. what they found was the first time we saw an improvement in sentiment. it is fairly mixed. it is tilted towards the bigger companies.

bigger companies are having a better time than smaller companies. you look at -- 9.3 percent. which seems like a lot of economist, making it likely for corporate japan to splurge on things like investment. they are sitting on cash. another market i want to show you the shanghai composite. compare that to the session yesterday. really a boring afternoon tea session compared to this. not bad but also not improving. anna: thank you very much. a little bit of boring is

perhaps what we need more of. sarah, i want to pick up on one thing you mentioned. you are the second person this week to mention the possibility of there being increased pressure within greece for another national currency. some form of payment to emerge. how much of a possibility is that? or is this hypothetical for the future? sarah: it could come sooner than we expect, especially if there is a no vote. we see the government struggling to make pension payments. the next step is i oh use -- iou's. in the event of a new currency

they could be the precursor. anna: what is your latest understanding of the referendum? we seem to get constant news flow on the greek front. the suggestion that they were going to offer a bailout. they went to the ecb for some financing, they seem to be coming at it warm -- from all kinds of different angles. sarah: nothing at this stage can happen. from the creditors point of view it doesn't make sense. nothing can be decided. the old bailout ended at midnight last night. the next stage will be to discuss a third bail out. the government has indicated they are prepared to do that. until we know the results, no serious talks can happen.

i expect creditors will be reluctant to take negotiations forward. anna: thank you. we spoke to commerce bank earlier. they put the possibility of a grexit at 60%. here are a few of the events that are going to play out in the greek drama. the finance minister of germany presents their budget. he has previously said it is safe even in the event of a grexit. merkel has said there is nothing to talk about until the referendum sunday. around 4:00 this afternoon, the governing board meets. emergency assistance to greek banks could be in question after the country missed an imf debt payment. all of this to look forward to.

we will take a break here on "countdown." it is 70 years since the full-length runway was built in the area around london. we will speak to the cfo of london gatwick airport. they say they are still in the running. ♪

anna: welcome back. you are watching "countdown." heathrow should be site for a new runway for london. that is the recommendation of the airports commission. they were set up by the u.k. government to weigh options for expansion. let's speak to gatwick's cfo who joins us for his first interview of the day. thank you for joining us. you say despite the findings gatwick is still in the running.

nick: absolutely. we are still firmly in the race. expansion of gatwick can make a significant impact with a fraction of the impacts of heathrow. we are moving to the most important part. it is over to the government for a choice about which airport should expanded next. we remain confident the government will choose the only deliverable option which is gatwick. we can be delivered faster, we are quieter and cleaner. we are the obvious choice for government. anna: not for the davis commission. heathrow is best placed for the type of capacity that is urgently required. nick: the report has made its

recommendations. heathrow has been looked at and recommended the four but has never been delivered. that becomes important whether in the economic and offense. if it is not delivered, the economic benefits do not flow. the kid mission -- commission has recommended -- we should also recognize. government has to weigh a number of issues. there is the economic benefit. on the other hand, they need to consider the impact on people's lives of airport expansion. what happens at heathrow is significant noise, significant impacts on air quality. anna: do you think there is enough cortical will to deliver another runway at any of these locations? this has been talked about for decades in the u.k..

nick: it is clear business, politicians, and others are supportive of airport expansion. there is an understanding of the link with economic growth and airport expansion. what is also clear is governments have a responsibility to balance those interests with those of the broader population. that means they need to pick a solution that can be delivered quickly and in a way that does not have significant environmental impacts like heathrow. that is why they will ultimately choose gatwick. anna: do you think we are in danger of losing sight of the competitive landscape, the rise of the middle eastern airport? the role they are playing in transferring passengers in long-haul flights? is that where your focus should be in terms of a competitive threat? nick: the u.k., we are at a

point to make an important decision and we need to get on with it and make some thing happen quickly. that is why we believe that what, which is a simpler proposition and can deliver capacity five years ahead of any alternative that heathrow, means we can start to address that competitive threat. anna: do you think there is a weak point that means you have lost this question mark what is the weakness and how you can you address it? nick: this moves beyond the commission. they have written a report. they are putting that to the government. it is now for government to decide. i do not think there is a weakness in the gatwick case. we can make a strong competition to the u.k. growth. we want to make sure this happens this time. a delivery of a runway is actually made real. it has not happened in the past

for all the reasons i have highlighted. this is the first time in a generation gatwick as an independent business has been able to compete and put forward a credible alternative. anna: environmentalists suggest either option could breach" he standards. will it be possible to deliver either of these? nick: the airport commission has been clear about the of ability of the airports to expand by one runway and still meet the targets about carbon emissions. it turns on environment when you bring it back to issues of noise and air quality. around heathrow, the government and heathrow are in breach of air quality standards. the supreme court has ruled the u.k. government needs to bring those into line and set out a

plane. gatwick has never breached its air quality limits. anna: thank you for joining us. nick dunn. gatwick saying they are still in the running. we will be speaking later to the heathrow airport ceo permit let's continue the conversation beret joining us on the recommendation is a member of parliament. great see you this morning. how do you feel about this decision by the commission to back heathrow? i know you are in support of heathrow but i understand you want more capacity for london's airports. guest: it is clear we have needed new capacity for a long time. my instinct is the 40,000

jobs and 10,000 apprenticeships that the runway will bring is good for us. opportunities will also be good for the business community. i'm struck by the coalition in support of this. the business community and trade unions. local people who depend on the jobs that heathrow generates. anna: there are some high-profile conservative voices against this. it will be a government this decision. gareth: i think it is very difficult for them to back away from a third runway now. he is very clear the runway can go ahead and we can still meet climate change and air quality targets. there is an improvement on offer in terms of noise. it will be difficult for the conservative government and any

mayoral candidate to back away from the third runway at heathrow given how clear the davis report is. anna: would it be politically easier for the conservative government to deliver something around gatwick givingen that so many high-quality -- high-profile conservatives have spoken out against it? gareth: it could have been easier for the conservatives but given how clear-cut the report is, heathrow is the best option, i think it will be very damaging for conservatives if they follow the lead of those were opposed. anna: what about the labour party? some have concerns about environmental issues. gareth: i am the only candidate running for mayoral who thinks we

should be explicit in support of heathrow. for those of my party who think there should be no additional runways or gatwick should be the option, just how clear davis is makes it difficult for them to dismiss the third runway option. anna: we have been talking about this since before i was born. our reaction can get this made and shovels in the ground? gareth: we have been talking about it since almost before i was born, too. we have had to bang major governments. mine and this, producing clear decisions. anna: a lot of paper produced. gareth thomas, a member of parliament joining us on that decision by the davis commission on airports. we will take a short break. back in a couple of minutes. ♪

anna: welcome back, everybody. how to check on the markets. this is a picture of the futures. looks like a start of the bound -- a bit of a bounce for the start of equity trade. mixed data out of the asian session. small gains being made around the asian sessions. let's have a look at the market moves. sluggish pmi data from china. down by 1.8%. japanese doing better.

a surprise move. sentiment among larger manufacturers better than expect it. -- expected. it seems we are seeing small moves on those bonds right now. we will wait and see what happens with the referendum this weekend. here are the stories you need to know. a deal on the iranian nuclear row graham is within reach according to the russian foreign minister grid following a meeting with john kerry he said only procedural issues need to be addressed every in negotiators have extended the deadline to july 7. barack obama said the u.s. would walk away if quote it is a bad deal. he said even if an accord is struck, divisions between iran

and the west would remain in greece has missed a 1.5 billion euro payment, making it the first advanced country to do so. german chancellor angela merkel said there will be no negotiations until after the referendum this sunday. capital controls remain in place in advance of the vote on sunday in which the people of the asked to accept or reject a bailout from creditors. the bank of japan index rose to 15 from 12 in march. ahead of economist estimates it would remain unchanged. let's get more on trends in asia. in fact, let's go to sarah.

leave greece and talk about the news out of asia. it seems slightly sluggish growth is still coming through on the chinese economic front. sarah: we are very much focused on the data as a come out. the pmi was a little this meeting. -- disappointing to read the first quarter every we think the second half of this year is going to be a little better for china. a lot of the -- seem to be gaining traction. anna: some have suggested the week to suggest the monetary policy we have seen since november of last year has not enough. will we see more in terms of easing monetary policy? sarah: we think the cuts we have

seen previously are gradually seeping through, but take time. fiscal easing, which the government has been undertaking, very targeted lending. all of these issues are going to drive the economy somewhat stronger in the second half of the year. anna: we heard from our bloomberg view columnist and tokyo about some of the reaction. a survey of large businesses in japan. it seems to come in better than expected. he was pointing to weakness in china which has been a guiding force for the japanese economy as well. sarah: it will be important what happens to china over the next 12 months because it affects the whole region. japan, the story isn't proving especially on the large office side. that is what we and to faded, better than expected.

that's what we anticipated, better-than-expected results. now we want to see the consumer side picking up. anna: thank you for spending an hour with us. sarah hewin, thank you for giving us your time. let's get the latest development on greece. hans nichols is in berlin. interesting pictures outside the banks. some of them have been opening up. anchor: this is the first time we have been able to show you this. a greek bank branch open. they were ready to go in, and the banks are opening for them. those who cannot access their pensions any other way. they are allowed to take 120 euros per date read explaining

to them, not to their complete satisfaction, only someone be able to get their money out. people have been going in and coming out with their pensions. we have a machine behind me, atms, very much open. greeks allowed to a limit of 60 euros. the capital controls remain in place, even if 1000 branches are due to open. somebody wrote, better the drachma than the euro. not a sentiment you would hear many people express here. anna: it seems strange the alphabetical luck of the draw should determine what you get in or not. hans where do creditors

stand? hans: there seems to be a little bit of daylight on whether negotiation should go on. angela merkel is staying firmly it will not happen until there is a referendum. negotiations are taking like at the eurogroup level. there was a great deal confusion followed by clarity. once it became clear greece was asking for a blank check. when you put it in those terms it became clear what creditors would say. >> all the proposals have been rejected. the greek government has called a referendum and advised the people to vote no. under those circumstances, it would be crazy to extend the program. that cannot and will not happen. the program has expired. hans: from angela merkel, she

said that we will negotiate nothing until the referendum is held. calling their bluff read once them to take that vote. until then, there will not be negotiation. she did leave both been -- open the possibility of negotiations down the line. angela merkel: i have no notice of any other relevant tax. we will not cut off the line of talks. we would not be the european union if we did not do that. the door is open for a line of talks. that is all i can say right now. hans: what we have coming out is potentially a walk back from the referendum. negotiations are taking place. the eurogroup will meet again by phone. this idea that greece could potentially call off the referendum or change what they are going to do in terms of advising the people to vote yes

or no. if they tell the people to vote yes you could see negotiations moving. the greek government, they actually vote yes on it. negotiations seem to be taking place, but they are are a part. -- far apart. anna: thank you for the update. 21 minutes ago until the start of european equity trading. set for a bounce higher at the start of the european session. it's talk to the head of capital investments. good to see you. little bit of relief in the futures. do you feel relieved at all? guest: it is nice to see the good numbers, it is very positive. it is the smaller countries. it is so much about politics. anna: we had the finance minister of france say that.

and sara hewin was saying you are unlike to have the article capitals is worth a greeks. guest: one of the biggest losers is in spain. anybody knows what happened if you elect another left-wing government and have a fight the eu the referendum, it is not certain what will happen. nothing is certain. whether they are going to pay or not. given that the ecb has such big fire power and they have been emboldened, those things are very positive for the eurozone. anna: you think investors are not taking seriously enough the threat of the grexit, or they haven't in perspective?

manish: i think there is a sense of fatigue, so much news. if greece wants to exit, it is a medium-term case. i would not say it is a short-term case where you will feel a lot of anxiety. it is a medium-term anxiety. was a big day and that you saw bond yields were rising. bond yields were down. what does that tell you. the risk is not shown in euro-dollar. the market has taken this into account. the grexit is not going to be a good thing for the emu, but is going to play out the medium-term. anna: we have mixed responses about whether investors have been to relax. some saying, everyone should have seen it coming.

we have been talking about it for five years. other saying, we are not paying it in yet. a lot of people talked about 2012, when there were not firewalls to protect the rest of the markets from greece. they say now there are firewalls. monetary transaction scheme from the ecb. all kinds of tools at the disposable=l that should make people feel safer. msanish: 2012 was different. at that time, there was a general in question about whether the ecb has the power to prevent it. a lot has changed since then. mario draghi said, we will do what ever it takes. if there was to be a contagion you would have another one every takes moment from mario draghi.

if you are a short seller of portuguese bonds or something, you have to be careful the ecb will come back and bite. anna: thank you very much. he will stay with us after a short break. 7:43 in london. you are looking at a live shot from athens. equal -- pictures of the athens parliament. a sunny morning in athens. pouring with rain last night as protesters were out in ores. more on the greek story when we come back. ♪

anna: welcome back. you are watching "countdown." let's get to guy johnson in athens. guy: thank you. financial markets in a deep freeze. stop market is shut. -- stock market is shut.

you guys are a british investment bank. your membership, the athens stock exchange. what do you do with your time? guest: we are trying to clear transaction spending from thursday and friday. we will clear transactions pending from last thursday. we expect transactions from write a two clear out. guy: the business is in a deep freeze. guest: without the thank you to some it is the gulf to do business. guy: what are your investors telling you? guest: investor confidence has been badly shaken. everybody is in a weight and see mode. we are waiting to see what the political developments will be. for business to start running

again, we have to have a system that is operating. guy: what is the expectation with capital controls? how are you working with the capital controls story? guest: even with a good case, they are state. they are going to have an effect in the greek economy and of course on the investment appetite. i know in cyprus from's tom consumer good companies -- from some consumer good companies, consumption dropped 30%. we can expect a similar drop when the banking system operates again. guy: doesn't matter whether you are using the euro or a

teh cdrachma? evangelos: it is an uncharted territory at the moment. there are so many scenarios that can play out. we do not know at the moment. guy: how do you make it work? you have your assets outside of the country. they are outside the country. evangelos: the problem we have is with the people in greece. of course all the assets that are greek, deposits in greek banks or greek equities, they are here in greece to read the moment they are frozen because the banking closure. asset out of greece that is not a problem. we use an asset custodian in a foreign bank. even with capital controls, they

can be moved freely. guy: good luck with the business. he is managing director, working their way through the capital controls story and what is happening with the banking system. front and center, showing you what it can do to a business. anna back to you. anna: guy johnson on the ground. the bank of england governor delivering his latest financial stability report. let's ring in general ion -- jen ryan. jen: the press conference that is, most of the questions will be about greece. the question is, can they keep doing their job? there is a lot on the play. it is not just about. -- about greece.

it is about global financial market, particularly the euro. new territory for everyone. this is something that has going on for years and years. everyone has had a the of time for lindsay plans. it is one thing to plan another for it actually happened. anna: we have been talking about greece for a long time, but the report was put together before the most recent development. what else will be in the report? jen: it's interesting how officials are bringing the referendum. a lot of people thought we would never get this far. the euro is irreversible. that is what officials have said. some economists say, it is reversible three the only thing that is not his debt.

anna: thank you very much. with the latest on the financial report. what do you make of the u.k. economy, manish? manish: it was a good gdp number. are we going to see a return right now there is still a concern to maintain the policy as it is. other than that, the chancellor has put out a program to cuts ending more. the best thing is you have a majority stable government. that makes me -- anna: that came as a surprise. mainnish: i will only look at exit

polls from now on. anna: what about the broader economic shirt in europe? what about the eurozone economy they see reasons to be cheerful. amnmanish: if you look at the bank lending service, a lot of positive in that report. you are seeing earnings getting better as well. if you leave the greece thing aside i'm not saying just leave it aside because it is a big issue, but the underlying economy is getting better. we are talking about raising rates because the economy is getting better. anna: you think that the euro is going to go higher? manish: i am seeing europe being very stable. my recent is the german bund

yields will be rising. why is that mark is let's say if greece stays. there is a fiscal transfer. it becomes a proper monetary union. if greece was to go out, you would have doubt about the euro. it becomes a proxy for the deutsche mark. we saw a bloomberg report that chinese money is coming into the year in economy. with bund yields grinding, -- rising -- unless there is time when you start raising rates, that is when you see a strong dollar. anna: what about the european equity markets? year to date, up more than

1100%. it was a dreadful last three months. manish: i am positive on the european economy. thank you very much. joining us from cross bridge capital. had of investments there. stay with bloomberg tv. we will give you full coverage of the financial stability report. that is at 10:00. "on the move" is next. looks like his things will be stronger at the start of trading. how long will that last? ♪

jon: good morning and jon: -- welcome back to "on the move." let's get the second half of the year started and straight to your morning brief. greece he comes the first advanced economy to miss a debt payment to the imf. no breakthrough. german chancellor angela merkel rules out a return to talks with greece before a weekend referendum but finance ministers will discuss a bailout later this evening. a chinese manufacturing gauge signals a sluggish response and the world's second-biggest economy. while sentiment unexpectedly

improves. those are the latest things i'm watching this morning. futures are a little bit higher. some big moves in asia that i will get to in just a moment but coming up let's go to the market open with mark barton. mark: what is the market repercussion of that missed imf payment, can it be contained? what about emergency liquidity assistance? what will come from that finance ministers teleconference later? questions, questions, questions. no change on the greek tenure. yesterday it rose to the highest since november 30th, 2012. this is encouraging when we are talking contagious because italian and spanish bonds rose yesterday and are rising again today. the spanish 10 year yield