manus: just hours before a deadline, greece submits a bailout proposal to creditors, the plan faces its first hurdle in athens this morning. the euro jumped as investors breathed a sigh of relief. grexit is no longer the best case scenario. chinese stocks enjoy their biggest two-day gain since 2008. government measures start again. -- to kick in. the ryan agrees to accept the

offer for aer lingus. ♪ a very warm welcome, live from bloomberg's headquarters in london, i manus cranny. in a bid to keep his country in the euro, alexis tsipras has offered to meet most of the demands made by the european creditors in exchange for a bailout, 53.5 billion euros. the package of cuts, tax increases almost mirrors the proposal put forward by creditors to weeks ago which were rejected by greek voters in the july 5 referendum. alexis tsipras is insistent on restructuring debts. guy johnson is in athens, hans nichols is standing in as well.

guy: -- guy what is your take? guy: you could look at it in a number of ways, most obvious yes he accepted everything they creditors demanded. i suspect there will be changes along the way, yes, it feels as if he blinked. you can understand why the greek banks if they do not open on monday will be bankrupt. that is a major blow for an economy already flat on its back. he has signed up for the deal that was on the table and voted no any referendum -- in the referendum. now he is accepting the deal. there is a story that

effectively no vote -- the no vote gave him a mandate to take the deal. the greek people said they did not want to leave the euro, as a result they had to accept the deal. greek parliamentarians in the building behind me be voting on this. there is no doubt this will pass , the only doubt is if it will pass with the full backing of syriza. alexis tsipras is effectively the only leader in town at the moment. will the government be able to amend reforms in front of it. a lot of things still to be decided, at the moment parliamentarians are behind us voting. manus: let's see how those votes go.

they are speaking to reporters and saying there is still a need to assess reports, he is saying he is at the institution to accept greek proposals but broad greek support gives more credibility. we are seeing negotiating in a backdrop gives credit ability -- credibility. in terms of where we are, where are we on that story? hans: merkel was open to the idea of something to do with debt repulse filing, not -- debt free profiling. there is some room you could maybe have some sort of free profiling -- reprofiling.

enjoy the said debt sustainability is not feasible without the haircut. the imf is correct in saying that. he is saying there cannot be a haircut because they would infringe on the union. this morning we had reaction at parliament, we are hearing a great deal of skepticism from german members that athens actually means it, they will follow through. this captures the sentiment in germany, i fear many members will vote no. he said greek government is either cheating her own people or us again. that gets added here -- at it here. germans have made clear their offer is no longer on the table. how to the accept that 26

document they campaigned against? i have not been able to square that situation. in the past, the headline looks great the numbers do not add up. manus: that's probably what they call politics. thank you very much. that brings us to our twitter question. have the last 10 days been a waste of time? #greece. one man and his team who really do focus on perspective and the possibilities is the head of global asset allocation at ubs. here we are rbs is saying grexit will not happen. where are we in this debate?

it looks like the past 10 days we are back of what was put on the table on the 26th. >> i think we are back there but in a constructive way. we have a much more focused political side in germany positioning themselves what will happen in the weekend. we also have a leader in germany saying there is room to negotiate. there is technically room in the document, it is a question of commitment. the stronger leader has a chance. there is a 50-60% chance that greece will be out next week. our conviction is what matters is the ecb is with us and they prevent contagion. manus: italy, i know from an investment perspective is on the top of your agenda spreads

widened, when italians into their budget, those spread, the ecb has to act what kind of action can they do? >> this week has been nice in that way. we have seen statements from the ecb that say they are ready. today and yesterday they tightened, that shows us economic recovery and be in place for the ecb mandate is clear, volatility in financial markets is deflationary, ecb is here to fight deflation. they have support from the european code of justice, but they hardly needed -- need it. they are doing the right thing by standing ready. manus: the ecb and the greek banks are linked. you have two versions, one is optimistic, i paraphrase -- i

wrote optimistic, the other is grexit. if greece manages to do a deal and stay in you are 50% in -- the greek banks still need some kind of major capital boost mergers. what is your scenario for the banks? >> that is the funny thing, you cannot vote capital into a bank. in a positive scenario the recapitalization would come by a title funds which might need to be bridged over political unity in europe. there would be money flowing that way. i think it is more interesting for us in the negative. in a negative scenario, that is where we will be giving of the gains from yesterday the

long-term road, the recovery continues, we will have the greek banks recapitalized not by euros, but another form. in that scenario it is important there is no recapitalization. the european banks are protected. manus: in the ultimate scenario the new drachma, currency whatever that is -- how much of the devaluation -- one packet says 60% -- as you guys look at your scenario, what do you envision? >> people keep coming up with deadlines. i keep asking everyone to not put up deadlines, this is more complicated. i don't think anyone can explain how greece will leave.

we are saying it is 50%-60% that greece will leave. will they leave himself? -- will they leave themselves? we don't know. a devaluation of less than 30% makes no sense, why do it? you are probably facing a 30 40 50% and you are facing a restructuring of the economy. that would be fine -- painful, the pressure is on to avoid that. manus: you will stay with me. we will talk china after this short break. here is a look at what else is on a radar. the shanghai, cause it index enjoyed its biggest johnson's 2008. almost half of china's total

listed shares remain suspended from trading. john kerry said that westerners are not in a hurry to reach a deal with iran. >> we will not rush and we will not be rehashed -- rushed. all that we are focused on is the quality of the agreement. that is what we will -- what will continue to define our work. manus: ryanair shares jumped as they agreed to accept iag's offer. it removes one of the last hurdles in the british airways owners quest to add the irish airways to its portfolio. offices and schools have been closed in taiwan a typhoon

approaches the island. the government has issued the highest level of alert for the storm which is expected to make landfall tonight or saturday morning. just a reminder, make sure you stay tuned to bloomberg this weekend. our show highlights the top interviews throughout the weeks coverage this episode features coverage from reese in crisis. -- greece and prices. you can catch that on saturday and sunday 12 noon 4:00 p.m.. it is all covered on bloomberg. some live pictures, this is air buses electronic plane. it will cross over the english channel.

this is a journey that the plane maker hopes will be an important first step towards eventual commercial use. all great things start with very small jobs -- jobs. stay with "the pulse." ♪

>> stock markets in china plays much smaller role in terms of size than they do in a country like the u.s.. it went out quickly, it is coming down quickly, my sense is that chinese people should be used to wild gyrations in the stock market this is not the first one, it may not be the last. i think it is a sideshow. manus: that was the imf chief economic all of your bill -- olivier blanchard. let's talk to caroline, you have the context. this is giving volatility a whole new meaning. caroline: over the course of a month we have lost close to $4 trillion in terms of value on these particular markets. this is the one-month chart of

the shanghai composite. it has been falling by 33% lower over the course of a month. the government has been rushing to try and extend what is going on. i want to focus on the sudden turnaround in the last two days. the biggest rally since 2008 up 10%. what did the government have to unleash to achieve that? we managed to see a turnaround but that is with half of the stocks halted, major shareholders and owner of more than 5% of a share, you are banned selling that for the next six months. the turnaround may have legs. this is what some are starting to see.

yes, $4 trillion have been wiped off of that stock market. fidelity investments have some of the biggest funds outside of mainland china in the world. fidelity investments are confident of some recovery. they see an economic recovery coming in china which is not priced in at the moment. we are starting to hear a myriad of voices saying this. goldman sachs says you could add 27% in the next 12 months. this is the larger caps. interestingly will this affect the economy as a whole? will stock market volatility held back 9 million individuals? investors we spoke to said no.

not one points -- not .1% effect due to this volatility. it seems hopefully it will not destabilize growth in china. manus: let's get deeper with the head of global asset allocation at ecb. my point is this i don't put credence in this 10% rally. 50% of the stock does not trade, there are a lot of people left with a lot of stock hung out to dry, mia skeptic? >> probably. there is no need for china to go out and tell everyone they will do whatever it takes, they have shown that. they do not want to see the spiral out of control. i do not think it is to stick --

significant if we are up or down 2%. we don't want to see a continuous decline. our mission is to grow wealth the overall message is things in china go externally fast, we have seen the market go up dramatically. it has not had a big effect on the economy going up so going down should not have a big effect as long as the leaders can stop it. manus: they had acted, about $19 billion in terms of support for the market this debate says it will not have a great deal of impact in terms of domestic growth of gdp. i had mark farber on the other day and he said china is going to 4%.

>> it can have an impact that is why it is important to stop before it spills over to other sectors of the economy. whether they stop it here or 5% down from here is not the key. the key is if these measures are not enough, should you expect more, yes. they will be ready probably in the end to use whichever part of the reserve they need. manus: where does that put the wealth position in terms of your exposure to china at the moment? >> the pressure for us to be on china's domestic comes off. we are currently underway in emerging markets. we think there are pockets of interesting things happening

but there is still too much to sell. manus: this is where you leave, iron ore volatility is at the highest ever. the china story is playing out across a whole spectrum, what is the mean for europe? the whole basis of automakers says it is about china. >> we basically took all of the commodities out 1.5 years ago. not because we knew what would happen oil prices, but because we thought it would be volatile. what does that mean for automakers, they get to steal? -- they get cheap steele? it means you can no longer consider the s class the primary

selling point of the mercedes. you need a broader group of people in europe buying it. manus: we have had corrections and a lot of european markets, is that an opportunity for you to reenter cash? >> we base loans on the ecb. manus: it will save us all. that is the head of global asset allocation at ubs. ryan air is set to sell its stake in aer lingus, after the board broke with their vote. it was a red hot sticky. ryan air really question its

position in iag. a woman breathed a sigh of relief our very own carry. finally, he is selling nearly 30%. >> generally the shares are responding positively to this. you never know it michael, he can be a little bit of a wild card. it depends on what side of the bed he woke up on, generally he does what is good for shareholders. it is good for ryanair, they make a small profit. they are ready to move on. there is a small hurdle that the european union needs to sign off. it is not completely 100% done. we are very close to this point. manus: for iag what does this

mean? >> one of the big things will be they are thinking of dublin as another runway for heathrow. it will be years before heathrow gets another runway. iag and aer lingus will definitely be making a push to focus on the fact that you can clear customs in dublin, go to the u.s., build on their transatlantic powerhouse that they have developed and focus on what they have been doing so well. manus: we will carry the aviation thing forward. this is the airbus experimental electric plane. it has taken off. this is of course a project run by aer lingus, it is an electric plane taking off from the u.k.. it is flying across the english channel, a journey that the plane maker said was a huge step.

can this go into commercial production? there you go. up next making a drachma out of a crisis, just how come located with a currency change be for greece? ♪

manus: welcome back live from bloomberg's european headquarters in london, i manus cranny. shanghai composite index has enjoyed the biggest jump since 2008. the rebound comes after a flurry of government measures to stem growth. almost half of china's listed shares remain suspended from trading. john kerry says that westerners

are not in a rush to reach a nuclear agreement with iran. it comes after high-level talks in vienna which have failed to break the deadlock. john kerry: we will not rush, and we will not be rushed. we will not let ourselves be rushed through any aspect of this. all that we are focused on is the quality of the agreement. that is what we will continue -- that is what will continue to define our work. manus: greece has made an 11th hour bid to stay in a euro in exchange for 53.5 billion euro bailout. the prime minister will insist that the countries that needs to be made more manageable. the package faces its first hurdle. small bribes have been a part of everyday life in greece for years.

whether it is to secure a doctors appointment, or get a permit approved, bloomberg spoke to citizens on the streets of athens to see the tradition -- if the tradition is still going strong. >> it was a problem. it is a problem. 440 or 50 years -- for 40 or 50 years. you cannot go anywhere. not to the hospital. not to services. i pay when i go to the doctor. >> it is likely more money for work.

>> if you go to hospital, there are many doctors who asked for it. -- ask for it. >> i don't think this will change the situation. >> if you do not give the money you can dive. -- die. grexit this is a big problem for society -- >> this is a big problem for society. this is between me and the doctor. >> no one knows. we must pay authority we have

the fear to do this. so this continues. manus: today's developments in greece reduced the odds of an and it from the euro for now. recent history suggests that it would be no small fee -- feat. joining us now is alex webb. the process of introducing a new currency, i just had a similar conversation with mas he says it would not happen immediately, but you question that. >> i spoke to a company in munich they printed the euro on

behalf of germany and have been doing so since the 1820's or 1920's they say it's between six months and two years. six months is the starting point from saying it and getting it on the street. depending on various factors how much you educate the public, how much debate there is it could take as long as two years. manus: it has taken five years to actually agree on what is going on in greece. do they have the capacity to make these -- this currency themselves? >> of course. you are right, it is a semantic, physical issue. they have a printing press on the outskirts of athens. they were the only national meant with permission to print the 10-year note.

they could go to private, best companies -- private companies. manus: what makes greece's situation unique? what are the possible implications of this? alex: the difference is whether it be eastern european countries who ditch the soviet currencies or the deutsche. the currency would be in circulation in the rest of the eurozone. incentive for greek businesses is to adopt -- to adopt the drachma diminishes. why would they take the drachma when it could he value when they could take the euro, a more stable currency. we have seen, they put a stop on

how much money you could take out, but what will he thanks be -- will be banks be? all of those issues need to be resolved, there are no simple answers. manus: thank you very much. there are no simple answers when it comes to greece. you can pick up his story on bloomberg.com. all of our boys are on the ground there for the greek story. ♪ mark: here we are at wimbledon. i will be asking nigel curry how much winning wimbledon adds to a

tennis players brett -- breath. who will win today? i think that was murray. we will see you in a minute. ♪

manus: welcome back to the pulse. the men's semi finals were held today at wimbledon.

we go to the all england lawn and tennis croquet club. here is a look at wimbledon by the numbers. ♪ ♪ manus: those are the numbers.

what does winning the title add to a player's brand value. mark barton is at >> w 19 -- x w19. mark: here i am -- here i am nigel, thank you for joining us. i remember talking to nigel in 2013, all sorts of figures were being banded about about how much would this title add to his value? last year, prize money plus endorsements, $19 million, why did he not make as much? >> i think he got off to a bad start. he did not maximize the income he could have gotten. he was waiting he had existing

contracts to get rid of. now he is moving into the big-league. i think if he won it would take him in to the top. mark: roger federer is top of the pile, more than $50 million. can you move into that racket? >> not quite. federer has been in the top tier of tennis for a long time, if you dominate a sport like tennis for that length of time you are really upping your earnings to possibly $50 million a year. mark: does murray embrace the sponsorship? does he play the game? >> no.

i don't think he does, he is much better than he was, he is getting better more mature older, he handled it better. federer is brilliant, he knows exactly what to do for the sponsors. murray is good, but could get better. i think you will get better. mark: the three big british sportsmen, hamilton, murray mcelroy, who do you think over the term of a career could end up being the top earner both prize money and sponsorship money? >> i think all three could do it, murray has a great chance because he is so unique. if he could win some more grand slams and really establish himself as one of the best in the world, i think he can do it. they are three of the earning -- biggest earning sports. mark: murray has a mrs. to his

name now, does that boost his value? does a married murray mean more to be sponsors? >> without a doubt. a celebrity couple is a great addition. it broadens their appeal. it takes them to a brand-new set of media. it widens their appeal to media it attracts more sponsors. mark: there are many companies that have been sponsors of wimbledon, 13 in their entirety. the last one added was jack where -- jaguar. wimbledon, you could not say is over sponsored, does that make it more unique? grexit no doubt. -- >> no doubt.

they choose like the masters in golf in america to have a very discreet, unique brand. it works brilliantly, weldon is a unique event. there are sponsors, it is subtle. they do it subtly. premium brands, they pay a lot of money. mark: coming back to individual tennis players, we focused on the men, sure, is an top of the female three. she has won five grand slams, she has had a successful career, why is she is so ahead of many men and way ahead of the other women. >> she is a good-looking girl she is brilliant at the game. there are not that many top

class female sports stars. they are in huge demand. she is one of the top players but also very good-looking tall blonde, and can market all of the great products that men cannot. she is in huge demand. mark: give me a figure, if murray wins this wimbledon what will it add to his brand value? give me a figure. >> i think it would double his brand earning potential. i think he could be up towards 30 million or 40 million per year. mark: fascinating things. they could double his value if he wins wimbledon this year. he has to overcome better rare today -- roger federer today. manus: what did you give those

people cheering you into commercial break? mark barton down at wimbledon. what more do you want? let's take a look at some of the other headlines. the former jp morgan trader escaped a $1.5 million fine for alleged market manipulation. their investigation has been dropped, a for -- a person familiar with the case said no reason was given and industry ban against them has also been dismissed. computer shipment sell almost 10% in the second quarter as companies reduce outlay attack and the stronger dollar raised pc prices.

manufacturers saw the steepest decline in shipments in two years with desktops being hit particularly hard. consumers prefer smartphones and tablets. the u.s. said hackers stole personal information on more than 22 million americans. the figure was originally at 4 million. most affected had been applying for government security clearances. let's take you back, this is our picture story of the day. i like this. this is a funky shot. this is a plane designed by airbus, it is electric. it took off for its first flight across the english channel. this comes down to it electric

commercial flights, how long can they stay in the air, is it viable? will be commercially viable? that is the question. we will keep an eye on that. really cool shots. coming up, how is the market in china affecting the luxury car market? ♪

manus: welcome back to "the pulse." we are streaming on your tablet phone, and bloomberg.com. 30% chance -- 30% selloff of chinese stocks. could the country's market meltdown impact the sales of europe's luxury brands? we will actually see what those numbers are for audi. caroline has a breakdown. caroline: in june, china shares, auto sales fell overall. we are seeing a slowdown. this ramification of the slowdown in china is hitting european companies, in terms of luxury brands. i wanted to focus on the carmakers. bmw, volkswagen they make up

75% of the luxury car market. volkswagen owns audi which is the number one brand in china. we are seeing the share price really reflects on china. they are very much dependent on china thomas suddenly today we get breaking news that the chinese auto manufacturers association is cutting the rate to 3% growth. audi is set to announce the sales in june, but china says their car sales fell. bmw overall sales fell. audi, for the first time in two years had a decrease in their sales in china last month to the tune of 1.6%.

we are seeing these headwinds hit rolls-royce. this number is outstanding, 32% decline for jaguar land rover. lee selloff hit disposable -- will the selloff it luxury autos. it has been the desire to get your money and the stock market people are actually putting money in the stock arc instead of luxury cars. good we see a movement back into the luxury goods? it is suit for thought -- food for thought. we are seeing a slowdown in the auto market in china, that will have repercussions for the three

big players. manus: let's see what those numbers bring. for those of you listening on bloomberg radio, the first word is up next. for our viewers, a second hour of "the pulse" is coming up. we will have our team across europe and athens, considering what the prime minister is discussing with his cabinet. we understand there is a order of plague, guy johnson will have the details on that. we talked the business of sport with one of weldon's top sponsors -- wimbledon's top sponsors. there you go, this is the airbus electric plane which had been taking off to cross the channel.

they hope to make it a -- an important step to commercial use. the greek story is next, right here on "the pulse. " ♪

manus: last chance saloon. just hours before the midnight deadline, greece submits a proposal to creditors. the plan faces its first hurdle in athens this morning. the euro jumps as investors breathed a sigh of relief. grexit is no longer the worse case in error. bouncing back. chinese shares enjoy the weakest two day gain since 2008. as the government measures kick in. a deal is on. the ryanair board votes to accept iag's offer for its

stake in air lingas. good morning to our viewers in europe. it evening in asia. welcome to those of you waking up in the united states of america. i'm manus cranny, and this is "the pulse." a message from the french prime minister via twitter. we know the greeks applied for a bailout, 53.5 billion euros. both sides are very close. mr. hollande say the greek proposals are serious and credible. the french president. we know the french prime minister, excuse me, this is, of course, the french side of the interpretation of what is on the table. we know the french have been much more supportive to the greeks.that is for sure. the franco-german alliance.

the german -- a difference -- was he joking with jack lew if he said, if you give me puerto rico, you can have greece. that was yesterday afternoon. angela merkel -- the debate is between short blunt and merkel -- between shauble and merkel. ubs has been said best case scenario that greece will still leave the euro. there is the politics at play. that is probably one of the most important aspects of it. let's get it to the team. guy johnson and hans nichols. these men deserve a real victory applause. boys looks like we can take you home from greece guy, possibly. give us the order of theater today in terms of negotiations between tsipras and the party behind you. guy: so the mp's are behind

closed doors in the parliamentary building behind me and they are talking about the deal. it is reported in local greek websites that mr. tsipras told him we either go forward together or we go together. they have got to come up with a platform on which they can all except and move forward. the sense seems to be the left will probably vote for this. but we'll wait and see what happens after the vote, whether the government holds together. at 3:00 p.m., it goes before committee, the plan. there are four committees that need to vote. they are going to bring all of those committees together, and they are going to have a plenary meeting. the show of hands at the end of that. if it clears that, it goes before the house. the expectation is that we will get a result from the parliament tonight. that's the expectation tonight or in the early hours of tomorrow morning.

but the expectation is as well is that with the help of other parties this will definitely pass regardless of whether the party entirely votes for. the question is will the party vote for it? that could be critical about the structure of the government going forward. manus: absolutely. the debate out there is 10 day s ago, they were around the negotiating table and they walked out. of course, what have they given up? how much worse is this deal going to be? just before we go to in brerlin hans just more news coming from greece. industrial production false by 4%. it would not reflect upon the actual day. 25.5% of greeks are unemployed. the economy has lost 1/4 of its value. this is an economy on its knees with its bank closed herd with

that in mind the jumping off point of these negotiations is much tougher, because they have a surplus - -they had a surplus and they have a little bit of growth and light their. let's talk to you hans. debt restructured. there are a myriad of voices but there is a split in germany with where we are between merkel and shauble. we had those hollande, it's on twitter where he says that these are serious and credible proposals put forward by the french. serious and credible proposals. put forward by the greeks even. hans? hans: i'm still waiting to hear those words from angela merkel. what you do for a debt restructuring for a little bit. from germany this morning, we heard either skepticism or negativity. i know there is a lot of optimism out there. we can even have some sort of

approval later on tonight. we do not want to discount the optimism, but we do not want to discount the skepticism. a german official told my colleague that the terms on greece will be tougher than they were two weeks ago. you just mentioned industrial production. the economy is in a freefall in athens. the question is -- how do they make the numbers add up? taking a snapshot of the economy two weeks ago before the party decided to our sure and events that close the banks. or take a snapshot of the economy as it is. we have not heard from the germans.s yet. those terms of being much more difficult. that way we could have a negative outcome. so we are still trying to get a feel for things that are happening. yes, there does seem to be some give fiveby merkel on debt free

profiling. no haircut. they are clear on that. we have not heard anything officially positive from the german site to match the french's habitual optimism from the french. manus: i liked what you put that -- habitual optimism. there is no doubt about it -- the french are willing this deal to get across the line. the question is what way will merkel blink if she blinks at all? that takes us to our broad and sweeping twitter question of the day. who you go. has the last 10 days been a waste of time? not on bloomberg. #greece. as hans was saying the greeks walked out 10 days ago some these negotiations. what was on the table and? are they going to have to make more concessions to get a deal across the line? what is going to happen to the banks, what will happen with the ecb?

let's put some sense around this. let's bring in our guest from citigroup. the director of economics european economics. great to have you with us this morning. where are we in terms of grexit? ubs said they are 50% probability there will be a grexit. tsipras has got to be -- to get the political docs in the line. >> we have a deal this weekend and no parties, creditors or debtors are prepared for the grexit scenario. we are very unsure. what is going to happen in the future. will greece be sustainable in 2016? the question mark is too high.

that is the reason why we changed our baseline two days ago to honor in favor of grexit. we do not think it will be enough political political -- political commitment unless we have a change of government. manus: where do think the left field moment could come? by the way, i am surprised you say we are not ready for a grexit. i thought that we were being told by politicians there was a detail plan, the ecb was standing ready. you doubt all of that? guillaume: the ecb is ready to play ball if there is a deal in place. means providing enough liquidity assistance so that banks can reopen. i think it is optimistic to think that we can lift capital controls. the situation is fairly severe in greece. the economy is in freefall. the priority of the greek

government today is to have financial stability. not providing the lift of measures that will be necessary to reach a deal is a no go for greece. manus: the whole debate may well hinge on debt relief debt restructuring. guillaume: i'm sorry. i can't hear you. i can hear you now. manus: great. fantastic. it is good to hear some noise in the background on your floor. debt free profiling restructuring, whatever phrase you would like to use, what is the figure? what is the amount of debt restructuring and your mind that needs to come through to give greece a chance to grow again? if we go down -- let's try and remain positive, as the french president hollande is. he's saying the proposals are

credible. what amount of restructuring would you need to see do give it a credible probability of growth again? guillaume: we think you need 30% of gdp restructuring. you need 60 billion euros over time through maturity extensions and reprogramming the debt. that's absolutely necessary given the judiciary theat greece is facing. overall, it is a political decision. do you want to make an example of greece? ultimately the greeks will decide. there is support for the euro membership but not at all costs. the longer the banks stay restricted in capital flow the more difficult it will be for the greek economy. if we have a deal this weekend which is an unrealistic assumption about the funding gap, then we will be back with this big question mark of the sustainability of greece.

manus: so the possibility of a deal you think this weekend will take us into again that coming back -- about debt sustainability. do you think merkel, from what you're seeing -- have seen somebody has got to move in terms of debt sustainability and it has got to come from that woman who is on our screens right now. guillaume: i think germany's view of the whole thing is that the patience has run out. so unless we have a credible plan on the table by greece possible with a few iterations from the credit side to make sure the numbers add up, then i think she is not willing to push greece out. the greeks are demonstrating political commitment. the referendum was a shock to the system.

overall, i think germany wants to keep the eurozone as is. what the do not want, though, is to be in a position where a y a year down the line they have to admit they were wrong. it needs clarity and numbers. it needs debt profiling to be bigger. that is a discussion for the next three months. i would expect the financial discussion on the debt burden to be taken place around october. manus: lets's see what the next 48 hours bring. citigroup director of european economics. thank you. i want to bring up more of the political color we are getting across the bloomberg terminal. mateo renzi says he is more optimistic now on the position

in regard to the greek request. the irish prime minister, the greece deal will be signed by tomorrow. as you've been speaking with guillaume, there may be a deal. what is the quality and components of that deal? and ultimately, it is about debt sustainability, or else they are back at the table again. the irish, the italian, the french prime minister's all making -- how would you describe them -- descriptive comments in regards to the greek negotiating plan. how this turns out is down to two people, alexis tsipras and whether he is capitulating or what is merkel willing to do in regards to debt restructuring. that is the european story. china. the shanghai composite. the index enjoyed its biggest

two-day jump since 2000 and. rebound -- since 2008. rebound comes after a flurry of measures to stem a rout. almost half of china's total list of chairs -- shares remain suspended from trading. john kerry says that western powers are not in a rush to reach a nuclear deal with iran. it comes after 13 days of high-level talks in vienna which failed to break the deadlock. john kerry: and we will not be rushed. and we will not let ourselves be rushed through any accident -- any aspect of this. all we are focused on is the quality of the agreement. and that is what will continue to define our work. manus: ryannair shares jumped after the company's board to accept iag's offer for its 29%

stake in aer lingus. just a reminder. make sure you stay tuned, not just today but we'd like to do things the bloomberg rate. -- the bloomberg weay. -ay. bloomberg best. the episode covers the greek crisis. with the italian prime minister monti. and analysis on the china market meltdown. you can catch that 70 and sunday at 12:00 noon, 4:00 p.m. and 9:30 p.m. we have the full spectrum covered. you have time to do other things as well apart from watch bloomberg best under weekend. -- on your weekend. ♪

manus: welcome back to "the pulse." let's bring you some of the breaking headlines. institutions to view the greek proposals. the form a view today on the greek proposals. by tonight on these proposals? actions, so we're also seeing that the euro area summit may not be needed if the euro group agreement is made. so it seems as if we are accelerating. these are from an e.u. official

discussing the greek proposals. on tax, on restructuring and pension reform, on all the areas that were so close to doing a deal on june 26. so, they are to discuss at 10:00 a.m. on saturday. they'll review the proposals today. tonight there will make an assessment. at 10:00 a.m. tomorrow. we seem to be accelerating the process. we had mateo renzi talk optimistically about this in error. -- about the scenario. we are getting caroline set up. euro-dollars trades at 1.1154. that is higher on the back of this. european equity markets have bounced significantly this morning. paris markets up. there's the euro-dollar just

peaking that little bit higher. caroline, let's talk about these markets. caroline: you're right. we are still continuing our gains on the stoxx 600. 2.7% we rise overall. as i bring up what the euro has done. just a bit higher. you're right. this is accelerating. this good news seems to be inspiring the risk appetite. the euro trading up more than 1 percentage point. up against the dollar. the fact that we could have an agreement as soon as tomorrow rather than sunday. let's burn up some of the bond markets this morning because we are still seeing -- let's bring out some of the bond markets. germany bond'ss rise. let's look at what is happening in italy and spain. seeing almost a 5 percentage opintpoint fall on greek borrowing

costs. risk appetite being accelerated as we see that move towards breaking news. we could have a deal as soon as tomorrow. manus: herculian effortb being made. the deadline for another deal on iran has been missed yet again. with talks stalling over arms instructions, negotiations have been heated. diplomats threatening to walk out while also insisting that an agreement is it within reach. let's speak with elliott gotkine from tel aviv. from john kerry's point of view, we have -- it sounds as if they want to do a deal but not at any cost. elliott: look, i guess that is always been the case. as you mentioned in your introduction, this agreement over the arms embargo seems to be one of the major stumbling blocks preventing both sides from feel -- sealing a deal.

iran was the arms embargo lifted. it says it needs to replenish its armory to boost its ability to fight islamic state. and it's supported by the russians who would end up being large sellers of weaponry to the iranians. this issue has caused a split. the u.s. more reluctant to lift the arms embargo, not least because of its two major allies in the region, israel and saudi arabia. that said the u.s. has shown a willingness to be more flexible regarding the nature and timescale of those restrictions on arms sales to iran. so, perhaps that is something they will be able to resolve as those talks continue. manus: in terms of the nuances

of this deal, this comes down to the ayatollah, doesn't it? they want everything. they do not want to be assessed when they go along for a lifting of sages. it has to be all and everything all at once. elliott: there have been disagreements over the pace of sections relief and other aspects of any agreement, but they are closer than they were. they have missed today's deadline. the significance of that is that, rather than congress and the u.s. having 30 days to review any final nuclear deal, and potentially unpick it, they will now have 60 days to do that. now, people who are looking towards getting a deal may wo rry that this could give an opportunity to hardliners both in the u.s. and on the iranian side to try to scupper a deal. the white house suggesting that

perhaps an extended timeline will enable them to actually cull additional support. u.s. secretary of state john kerry says they will not sit at the negotiation table forever. in that sense, there is something being he and the iran ians agree on. a tweet from iran's foreign minister saying we are working hard but not rush to get the job done. you can't change horses in mid-stream. both sides are saying, forget the deadlines. they are not set in stone. what is important is the substance of the deal. the are -- they are still negotiating. perhaps those talks will continue over the weekend. for now, while the talks are ongoing, a potential deal remains very much a possibility. manus: thank you very much. our middle east editor elliott gotkine in tel aviv.

let's bring everything together, because we have a lot of voices. caroline, you're ready to rock 'n roll with what is going on with the euro. we have, of course the discussions from an e.u. official saying they may not need to go to sunday. equity markets are bouncing. the fx market, the euro is rising the most in five years. we have the irish prime minister saying things are basically looking optimistic. euro-dollar spiking higher. this comes on the youth -- the e.u. official saying there may be no need for a meeting on sunday. renzi saying the probability probably similar to the one discussed the vote,a greek deal would be similar to the one discussed before the vote. will that or won't that including of debt restructuring?

a variety of european voices and leaders supporting getting a deal done, or looking more optimistic. from italy to ireland. all in play in the next half hour of "the pulse." ♪

manus: welcome to "the pulse" live from bloomberg's european headquarters in london. our top headlines. china's shanghai composite index has enjoyed the biggest two-day jump since 2008. the rebound comes after measures to stem a rout. almost half of china's total listed shares remain suspended from trading. u.s. secretary of state john kerry says the western powers are not in a rush to reach a

nuclear agreement with iran. it comes after 13 days of high-level talks in vienna which failed to break a deadlock. john kerry: we will not rush and we will not be rushed. and we won't let ourselves be rushed to any aspect of this. all that we are focused on is the quality of the agreement. and that is what will continue to define our work. manus: and the french president hollande says greece's 11th power proposals are serious and credible. remarks are a first from a european leader since plants were submitted by alexis tsipras and his government asking for a 3.5 billion euro below. jonn hwerere we go. renzi, a greek deal probably

similar to the one discussed before the vote. that leaves you with a, why did we have a referendum? jon: it feels surreal. the proposals the greeks have offer to creditors is a mirror image of what the creditors offered to the greeks 10 days ago. the political analysts will be scratching their heads, digging to the numbers. the investors, a knee jerk reaction. the very idea that we could have a deal before the weekend the matter what it looks like, and even spare us a summit on sunday, guess what is happening? we are in the green. i -the dax stringing together another day of gains. here in london on the ftse 100, we are higher by 1%. so, equities gaining. a stronger euro up against

almost every major g-10 currency, but the yen is taking the biggest beating. a stronger euro, 1.3643. stronger by 1.9%. that is the move in the fx markets. bonds doing her things. peripheral spreads go tighter. yields lower in italy by 10 basis points. a similar move in spain. german bonds selling off. higher by 10 basis points. we talked about the greek bond market. and we know the yields have been ridiculous. we can barely call it a market. just look at that move in yields of 470 basis points. we are still at 14% but the direction of the yields do tell you the risk aversion is coming out of the bond market on the back of optimism over a deal. whatever you think about the

deal itself, if we get one, you will get that knee-jerk relief rally. that is what we are seeing in the equities and the bond and the fx markets. in aisia the shanghai composite adding another 4.54%, the biggest two day rally since 2008. as my producers call it, the biggest half rally with half of the markets in half the companies listed still closed. manus: as you say, in terms of this greek moving series of discussions and negotiations, i want to recap for our viewers what sparked this move, not just in the fx marcus but in greek markets. 4.7% our on 10-year bonds. a bond market for the brave. we had the french president kick things off at the start of the 10:00 hour. he said the greek proposals are

serious and credible. the french have been very much the sympathizers with getting a greek deal done versus the richard that was coming from the germans, from mr. schauble who turn to jack lew and said, this was the best moment to twitter. "if you would like greece, go right ahead. we would be happy to take puerto rico as an alternative." hollande say they are serious and credible. we have that followed up by renzi saying a deal would be similar to the one discussed before the vote. that is what jonathan is referring to. this goes back to, are you prepared to move on the vat. what are you prepared to two in terms of pensions? what are you prepared to do in terms of those? mateo renzi saying that the

deal will be similar to the one discussed before the vote. the irish for minister says that all eurozone leaders want the greeks to stay in the euro. the euro area summit may not be needed on sunday. the movement is to get a review and get something done and dusted by tomorrow morning. euro's on the move. mark barton having a wonderful time at wimbledon. we will of course, go live to wimbledon gary shilling. the -- very shortly. andy murray and roger federer. richard gasquet and a defending champion novak djokovic. it's a feast of tennis. so, we will get down to wimbledon in just a moment. but what we do at bloomberg is something called numbers. let's to wimbledon by the numbers.

manus: 28,000 bottles of champagne. sponsors are taking advantage of the event. let's find out how. mark barton is in southwest london. mark? mark: good to see. i'm joined by the chief marketing officer at jaguar-land

rover. thank you for joining us today. jaguar the 13th partner or as wimbledon likes to say, official supplier going back to the early 20th century. what is it mean to jaguar? laura: it is so exciting for us. it is a perfect partnership for jaguar. we're talking about two great global british brands. we cannot be more thrilled. manus: what does it take to become a partner at wimbledon? because we had a sponsorship expert on who said that wimbledon don't milk the brand enough. they have got 13 official suppliers. he reckons a vacant have twice that -- he reckons they could have twice that amount. how does wobble in and jaguar m -- how does wimbledon and jaguar meet? laura: it was obvious the two fit together. for us, people have asked me

this is your first year. it makes a much sense. mark: what do you give wimbledon? and what does wimbledon provide you and return? laura: we have 170 vehicles here. we've got branding on the court and a really great campaign called "the limit" mark: #feel wimbledon. laura: we have people with sensors and wearable tech. on a day like today, with so many big matches, the tension is going to be great. the excitement. and we are measuring the emotions. mark: how does that benefit jaguar using this technology? how does it benefit your brand? laura: it says a lot about our brand as a technology brand. technology in the vehicles.

it is another expression of that. mark: another expression of feeling wimbledon was a great instance that has gone viral. john mcenroe picking up a couple of tourists, wimbledon lovers in the car. talk us through what happened. this is had 300,000 viewers already. laura: john macro was in a jaguar x.e., and he picked up to fans on their way to wimbledon. and he said he would drop them off. they had no idea. when he got in the car, they were really shocked. once they got over the shock, a great conversation about the matches which is excellent. mark: does being associated with wimbledon -- give us a sense of the audience, both on television -- give us a sense of the audience and what it means for jaguar to be associated with wimbledon. give us the hard numbers. laura: for us, obviously the

audience is enormous. 500,000 people that will come to the gates and they are starting to line up now. the television audiences one billion globally. again, i think it is the type of people that share the same passions that we have. mark: what age group are you targeting? laura: across the board. obviously, i think that wimbledon tracks all ages and all interests. i have been watching this since i was a little kid. the audience, the demographics are -- mark: can you quantify it for us? is being in a partnership with wimbledon, does it sell more car s? because ultimately that is what it is about. can you quantify it? laura: i will not be able to say in these two weeks but i truly believe people fall in love with france not just because of the products but for what they stand for-- fall in love with a brand

because of what they stand for. mark: what has the buzz been like? have you been blownn away by the wimbledon experience? laura: the good news is we have been measuring the emotions. apparently my heart rate has been going up and down a lot. yeah i've been blown awy byay by the partnership. mark: tennis is not your only foray into sport. you have the rugby world cup. a couple weeks ago i interviewed martin johnson and louis moody. is jaguar in sport to stay? is this a big part of your strategy? laura: i think sports say much about the brand. sports come from and what we are all about. a huge year for us. the rugby world cup is a few weeks agoway. mark: you are from kentucky.

who do you fancy, murray or fatter? -- or federer? laura: i am going to murray. john mcenroe predicted it and i will stick with his production. mark: they will be gauging you your the motricity that game. laura: i'm sure my heart rate will be going up and down. team murray lall the way. mark: there are so many team murray here today, including yours truly. jaguar-landover u.k. who this year became the 13th partner of wimbledon. it is a very, very select bunch. manus: it is, indeed. if you hang outside the front gates, you never know who picture up in a car. who would you like to pick you up in a car and have a chat to you? mark: i would love for specter.

i -- i would love board's backer -- boris becker. people started calling me boris barton because my surf with this vicious as becker's. boris, pick me up and a car. i'm waiting for you. manus: you will be waiting a bit of a while, barty. have a great afternoon. let's bring you more breaking headlines now on the greek request for a bailout fomrrom their euro neighbors. debt sustainability will be a central part of the talks according to an e.u. official. this is critical important. there will be a report on debt sustainability delivered today. it's a central part of these talks. we do not know how they will be essential part of these talks. debt relief or restructuring now or will it come at a later date?

the institutions have access to the new greek proposals. a running commentary now. you have had some of the heads of europe coming out and making these comments. the debt sustainability is there. jus looking at thet euro. euro-dollar up 1 1/14 percent up the most since june 8. euro-yen, we are seeing reaction. with one of the biggest moves, a five month high. we are up 2% on euro-yen, up the the most since friday, october 30 1 2014. more headlines. we will bring them to you. we head to south africa and speak to the former reserve bank governor. we will ask him what he thinks poses the biggest issue to his country, the crisis in greece china, or the federal reserve. ♪

manus: welcome back to "the pulse" live on bloomberg tv. early this week it was announced that a new development bank is being established by the brics, brazil, russia, india, and china and south africa which each country will contribute and we will end up with a total of $100 million of financing.

joining us from johannesburg is the former governor of south african reserve bank. and a non executive director of the new development bank. it is tito mboweni. great to have you with you -- with me this morning on bloomberg. you have got the capital. we are ready to get to the point of activating this new development bank. went to the first disbursements come and wha kind of project is the bank going to focus on? governor mboweni: the bank is barely a day old. it was launched in the course of the week. we hope that by t first quarter ofhe next year, it will be in business, beginning to provide development financing. manus: now, when i saw this news come through, i thought we have

got the world bank, the asian development bank, the chinese are busy building their own war chest. where does this bank fit in? do we need another development bank? what is going to make this bank stand out? governor mboweni: yes we do need another development bank but of a different kind. in fact, we say that we want to move from what was called -- into the new practice. in other words, beginning to tac development challengeskle differently from which the imf and the world bank, african development bank has tackled him. probably yes, we act more along the lines of the development banks that you see in china and also in south africa. but this is not a substitute for the world bank or the latin american development bank or any other financial institution.

this is an additional source of funding. we do want to do things differently. and i think the founding countries which are also members of the world bank group, have nevertheless found that there are a lot of problems with the world bank group. and we want to try to take on the more riskier infrastructure projects, for example, and other development projects. but there may be cases where we have to work together, which would not be in competition but to tackle the big development challenges facing the developing countries. manus: one of those biggest development challenges, sir, is right there in your own beautiful backyard. it is about power. it's the huge issue for south africa. my question to you is, here we are.

we have a new development bank that want to take on riskier projects. a very pressing need. will the new development bank act as a bridge get involved in funding building the infrastructure in south africa, perhaps getting involved in the nuclear energy ban? what is the possibility of that? governor mboweni: i suspect that when the time comes and maybe they made the application, the executive will consider this. i think it falls squarely within the mandate of the bank to provide such capital for this large project but -- i'm quite certain for most of element. the key thing is that this development bank has to partner in some instances with domestic development finance institutions. in south africa where the dbsa is a perfect example of a

partner for the development bank. it's an infrastructure bank. it can partner with the new development bank in south africa but also in other parts of africa. manus: tito i have got to get your opinion on this. emerging market currencies. you've got reserve bank pedigree. you have got to have an opinion on this. dont' duck it. we have got the fed potentially moving emerging-market currencies have been under pressure. how is south africa preparing itself or is it in better shape now to deal with a federal reserve rate hike? governor mboweni: i think the micro economic fundamentals are still in place in south africa. i think it is very important. although there is a widening deficit i think it is within

affordable levels. the inflation rate is below 6%. the pressure on the wage side is not as much as one would expect. there is no demand pressure on the economy at all. so, i would expect to weather the storm very well. i expect currencies to find an appropriate level. but theis greek thing is out -- is sorted out the better for everybody. the matter how good our fundamentals may be, if there is disturbance somewhere in the world -- emerging markets, wherever -- we are always blamed as emerging markets. there is a flight to quality. even if there is still problem in south africa, people rush to the power of the euro or the

dollar. we live with that reality. our responsibility is to make sure that we continue with prudent economic management. manus: fantastic to get your input today. the new development barely a day old and you chose bloomberg to discusses. thank you so much for your time. tito mboweni, the former south african reserve bank governor. let's bring you up to speed going back to turning our attention to the breaking headlines. the voices in terms of the greek request for a bailout. greece should start enacting reforms today. the imf debt sustainability is important. a german finance ministry spokesperson speaking from berlin. guy you have been going through these -- crossing the terminal. we have got the political voices shifting. a euro group that now may be

brought forward by 24 hours. guy: it's accelerating to the upside. let's talk about it. we did not know how the reaction was going to pan out for the steel. it now looks like it is increasingly positive. there are a number of parliaments -- what is behind me. the bundestag remains one of the big ones we need to see progress in. yeah, the story seems to be increasingly positive. we may get a deal scored by the end of today. the euro group can then discuss it. whether or not we need to have a summit remains to be seen. but the story in the last couple hours has become more positive. still need to get that german story out of the way. back to. manus: standby. this could be the weekend. in markets or to play for the

greek bond markets are moving. we have a lot more to get through. "surveillance" is up next. stay right here with bloomberg for everything on greece. ♪

announcer: this is "bloomberg surveillance." tom: sippers blinks. will hit -- tsipras blinks. markets improve sharply this morning. eu leaders move to critical

sunday meetings. the chinese government deploys the heavy end of government succeeds in stabilizing their stock markets. there is green on the screen for two days. coming to america, a very, very different housing economy. good morning, everyone. this is "bloomberg surveillance ," live from our world headquarters in new york this friday, july 10. i'm tom keene. brendan greeley joins me. vonnie quinn is off today. the framework on this friday is a mess of cyan relief in europe. brendan: we had a june 26 agreement from the creditors to greece. greece says no, holds a referendum returns, gets rid of yanez verify gets -- of yanez verify gets -- the she was waiting to drop as to whether or not there is any debt relief