manus: china growth beats estimates but stocks fall as investors fear beijing may back off its stimulus program. a knife on my neck. alexis tsipras says he was forced to accept the deal with creditors, which the greek parliament will vote on today. the imf says the country needs a debt relief far beyond what europe has been willing to consider so far. and we get u.k. unemployment and wages data. what might they reveal about the state of the british economy one week on from george osborne's first budget of the new parliament?

you're welcome to "the pulse" live in london. our top story. china's second-quarter gdp beat estimates. rising 7% from a year earlier . 7%, a, i'm always a skeptic. coming in bang in line with what they wanted to achieve. what are these numbers? andy: you are right to be skeptic. it is a bit like last year. we had a slow start to the year. and a slow first couple months, but now it has picked up again. exports being better. consumers are back into the game. house prices recovered. it was enough to get gdp up to that 7% figure. i'll gveive your one

anecdote. cinema sales boomed, which gives an indication that the high street is actually spending a bit. manus: a take away from that is buy popcorn. does it mean where in for a better second half? these numbers are better than the market hoped for. it depends on whether there is more rate cuts and more support given by this administration. enda: it does. one wild card we have is the stock market. we know the story about the huge gains in june. then we have had this correction and we sit weeks. how is that going to pan out in the third quarter. second-quarter growth had grown -- because of all the activity in the share market. that will not be there in the third-quarter. you are taking away one driver of growth. there is a lot of industrial

overcapacity. a huge overhang of housing stock that has yet to be sold across china. there is plenty to keep a lid on growth for now. manus: thanks for wrapping those numbers up for us. let's bring in alexander friedland, ceo of gam holdings with $130 billion under management. great to have you with us. how worried are you about china? alex: i am not so worried for a couple reasons. first you are seeing divorce and the underlying economics. that is what the market is telling us with the gdp numbers. second as an investor, you have china h share, hong kong are quite attractive because there has been a saw. a shares it is hard to get comfortable with because when you have so many companies listed, it questions the fabric of the market. manus: as you said, the

differentiation is that you believe fundamentally that china will sustain these levels of growth because we've had various debates. we had morgan stanley saying that china slowdown kent dip us into the next -- can dip us into the next recession. do they present opportunities for you? alex: that is definitely a take away. there are opportunities. you've had selling due to march impressio -- margin pressure. i'm not so much in the worried camp because i do believe there are a number of policy options china has, including real quantitative easing usage usually deserves. so, if anything the last two weeks has told me that china will do whatever it takes, even to the extent of doing something considered truly bizarre which is what they have done with the a-shares to keep the story

heading in the right direction. manus: before and move on, do you think that you will see more policy initiative from the chinese? alex: i do. china shot themselves in both feet with what they did. they were on a path of saying we are becoming a hegemon and we're a mature market and you can depend on the stability. then they pulled the rug out from underneath. the message is not so easy to become -- in the capital markets. manus: there is a long way to go. i was reading through your notes. i think we have an image. you referred to an author where he tells four central bankers that broke the world. alex: the lords of finance. manus: are monetary policymakers poised to break the world again? my question to you is this -- 63

% of the global institutions have increased allocations to developed markets in the six months up to april. are policymakers taking us to the edge? alex: when i was trying to make the point was that because of concerted loose monetary policy, which we have seen from all the village markets, what happened? fixed income yields have come down. you have to go further out on the risk spectrum, more into equities. that is happening at the wrong time. just as we start to see increased market volatility. as we start to see the bulge th at is producing more elderly less productive workers. when there is a market correction, what is going to happen? you will see market to market losses for pension funds that represented different asset allocation than they have done for 30 years. at that point, who's responsible

for this? what we will do is we will point back to the way the central banks responded to the 2008 crisis. manus: where, everybody is searching for you. where is your biggest reach for your with some risk parameters around it? alex: it's not like there's any secret sauce. european equities look more attractive to me then u.s. equities, because you have that tail end of oil reasonably attractive currency. and huge q.e. in europe. and the u.s. is heading and the different direction. manus: you are going to hang out with me a while. alexander friedman, ceo of ga m. the greek prime minister suppress says he agreed to do a deal with the european creditors with a knife to his neck. that comes as the country's

parliament today votes on the measures set out in the agreement. the international monetary fund says that greece needs debt relief far beyond what europe has been willing to consider. they've downgraded its growth. the central bank thinks that gdp will increase 1.7% this year. down from a 2% forecast in april. the bank of japan will continue to expand the monetary base at an annual pace of 80 trillion yen. the uk's largest luxury goods maker burberry has reported a 10% increase of first-quarter sales. we tell revenue advanced 407 million pounds in the three months up to june, but that was short of the 414 million predicted. every shares are trading down 34 .4%.

amazon is celebrating it's 20th anniversary with a one-day sale that it says will be bigger than black friday. its prime day will see thousands of deals on offer but only available to amazon prime subscribers who pay for unlimited next day delivery. the federal reserve chair janet yellen will address u.s. lawmakers later. the testimony comes after she said last week that it will probably be appropriate to raise rates later this year. which nicely brings us to our twitter question of the day. carney or yellen? who will raise rates first? let's take a look at what else is on "the pulse." 9:30 u.k. on employment and wages data. that will be interesting for the bank of england. and that's one week on from george osborne's first budget. 9:35, we take a look around

london's altra luxury lanes for a hotel which has reopened after an 18 month refurb. 9:50, meet the german who is hugging it out in athens. this is an entertaining video. stay tuned for that. ♪

manus: breaking news.

coming from barclays, the deputy chairman has is - is going to step down from the board. he will join worldpay. this comes a week after john mack pharrell -- john mcfarland the chairman has taken over as acting ceo. it has all changed over at barclays. the deputy chairman will step down from the board and join the worldpay board. we will keep an eye on that story as we go along. ok that's it for barclays. let's turn our attention back to the main story, the focus in athens. the greek parliament will fit a vote on the measures set out with the agreement and the european creditors. alexis tsipras the prime minister, said he agreed to the deal with a knife to his neck. >> let me tell you the truth and

allow me not to paint a beautiful picture. the night before the previous one was a bad night for europe. it was not a knife it shall be remembered in the future believing that some steps are made towards the values of european solidarity and democracy. the result of the euro summit was the result coming from pressure put on a country and out of people who are decided in a democratic way. we were made to go towards the wishes of the most powerful people in europe within circumstances of blackmail and suffocation. we had two terms on the table. first, leave the eurozone. there was a third version, the schauble version which was not to go bankrate leave the eurozone upon an agreement. manus: pretty stern words from alexis tsipras.

live pictures from the greek parliament where the debate is going through. they will vote on the measures put in front of parliament. the imf is continuing to criticize the deal, saying it fails to offer enough debt relief. let's get more detail with david in athens. david, let me start with you. alexis tsipras'comments were fariirly passionate talking about this is deal being done likened to a knife at his neck. is that going to impact the vote today/ ? david: i think this was an opportunity to make the case to the greek people. he also used an opportunity to talk about a number of the points in the plan that he consented to. he talked about broadening the tax base, raising the sale tax something that he called the rational but something that has to be done. he talked about pension reform, raising the retirement age. he said that the something that greece should have done.

it is not progressive for a country to have people retiring at the age of 50. parliament is meeting now in committee. that is supposed to continue until 6:00 this evening. there will be a short break and the full parliament will convene. we expect this to go late into the night. consensus seems to be this will pass but everyone wants to have his say in parliament. manus: everybody does. we're just showing those pictures of the parliament at the moment. the banks are still close. the bank holiday has been extended. and nobody seems to know where the bridge financing is coming from. this is again another rather perilous situation. i am seeing notes talking about, you may need to issue iou's. we are far from settled on this greek sinner. - scenario. david: absolutely. there is great concern at the

banks of not opened. this is something that olivia sterns asked the greek economy minister. >> i think as soon as the financing from ecb is back into the picture, which will take place just after arguments in gr-- parliaments vote for the new agreement. olivia: germany does not opendebat e till friday. >> they will open this week after the ela is back into the picture. david: olivia sterns talking to the greek economy minister. there is a lot of uncertainty about when those banks will open again. manus: let's turn our attention now toh hans in berlin. the imf. this is fascinating timing in terms of their analytics. once again, they stand behind lack of sustainability in the

current form in the equation. hans: this debt sustainability arrived in brussels over the weekend. as everyone is going through these marathon negotiations sunday night, they knew the imf had huge concerns about the debt sustainability of greece. if you look at the latest numbers, they put that percent of gdp at 200%. their old projections 170%. here's a quote from the imf analysis. they said greece's debt can only be made available through debt measures that go far beyond what europe has been willing to consider so far. even this morning, we continue to hear from the german finance ministry, no haircuts. you could maybe have a re-profiling or extend the maturity. germany's you is basic. the interest payments on debt leaving aside the headline number, is quite low.

here are three suggestions the imf offered as waste on titus not. -- untie this knot. they talked about extending the maturity 30 years. then they talked about explicit direct transfer from one european account to another. that would be from the german treasury to the greek treasury. that is not going to happen. the thidrd offer. debt haircut. germans made it clear that will not happen. to what extent does mr. tsipras use the imf to try to bring along his party? mr. tsipras has been running against the imf but the imf is making an argument that is sympathetic to mr. tsipras' position. manus: that debate will continue. david in athens. hans in berlin. thank you for joining us. alex you have been listening to

that debate. the timing of this report is fascinating. they talk about again a debt peak of 200%. talk to me about what the imf are saying. alex: i think the imf is calling a spade a spate. i give them credit for this. because if we sit back and remind themselves -- ourselves, when you have the heavily indebted country, what is the way out? you can grow your way out. the economy is not growing. you can inflate your way out. they do not control the monetary policy. or third, cut expenses. cannot be done. why? they have already been cutting. now they are adopting a deal which hocks $50 billion of their assets? the real option is debt relief. it is not palatable in berlin. what is the other option? extend the maturities and hope that during that period you have

fiscal union in your. -- in europe. i think that is the crocks of the issue. it is what the united states went through when we moved from the articles of confederation to the constitution. greece, yes we talked about this. greece is like west virginia. west virginia has never been but a recipient of transfer payments from wealthier states. yes people complain about taxes in new york and california, but you do not see them kick west virginia out? i think the imf is saying, we need to give ourselves political cover that we will get there and we need to get to this emergency. the way we do it is by extending the maturity's generation pass the current politicians. manus: the timing of that. i mean forgive me the timing of what you're saying. do we really have that latitude of time? the extension of those maturity

something that might not happen until the end of this year when the nuts and bolts are dealt with. alex: you can lose the patient while you're trying to plan their surgery. you see debate. can we use the esm as a temporary payor? then you see osborne saying wait a second. i will not have the u.k. on the line for $1 billion. manus: the european commission set to propose the effm for the greek bridge financing. again, even this morning as we wake up, they still do not have that bridge financing. let's take a step back. we should have been more focused on china. less focused in terms of greece. the european equity story. we bounced off lows. we saw the primitive -- the periphery market. how do you look at european

equities relative to the u.s. and to china exposure? alex: first to your point about focus on china and not on greece . greece is not so much an economic issue as a political issue. in terms of europe overall, i think we can fall back on three basics. compared to the united states valuations are more attractive. nice tailwinds with energy prices that are cheap. you've got oil that is cheaper. the big issue will be what happens to the currency. her has been some profit taking which has driven down equities. -- there has been some some profit. it has been more consensus to say that european equities are attractive. cyclicals are attractive right now. the question is the u.k. and will we see rates rise and what will that do to exports? manus: that is going to be the crux of the matter.

alex friedman ceo of gam. it has been 20 is for amazon. if you have not signed up, you could. that is quite an achievement for a business. that has posted its first profit in five years. as it continues to reinvest in this business at the expense of its bottom line. >> they make no money. in my world, you are not an real business into you make money. i have a hard time with his is is that do not make money. manus: how's that? caroline hyde, i know you have interviewed steve ballmer. over to you. caroline: he is quite the character. but many are looking at amazon prime day. to celebrate the 20 years, they are trying to lure more people in. established in 2005. basically promising a bigger day than black friday. many are thinking this could

drum up $2 billion worth of sales. the caveat you have got to sign onto amazon prime. you have got to be able to do a 30 day subscription. you might be a user. 14 million already are. you can get your deals delivered to you within two days. i have to say, if you follow twitter. it's how harris. it does not seem to be living up to expectations. everyone is complaining that all they can get their hands on his deals on tupperware. you can get kindle fires. they're luring your towards their own products. headphones bos headphones. there are competitions you can enter. again, trying to lure you to amazon products, subscriptions and tv and music streaming. you can enter for -- to listen

to prime music. if you enter a competition, you can win an amazon made series. this is no longer in femurs company. this is a producer -- this is no longer an e-commerce company. this ias a company that was to beat out the competition like netflix. like hulu. they want you to use amazon prime not only to buy more but to stream tv and music and become obsessed with amazon in your life. interestingly, 20 years it's managed to survive. it survived the dot come bu bubble. it was called relentless. it was also called cad abra. it is about reinvesting.

manus: i'm searching for the tupperware as we speak o. up next u.k. unemployment and wages data. stay tuned for that. ♪

manus: welcome back to "the pulse" live from london. breaking news on the u.k. data front. average weekly earnings come in at 3.2%, a rise above last months number. break these numbers down. mark: after the space of five years. total pay, 3.2% average weekly wage. quickest pace in more than five

years. that may re-and first growing expectations within the bank of england that we might need a rate hike. -- that may reinforce the growing expectations. prior to that an increase of 2.7%. weekly earnings excluding bonus is up by 2.8%. the unemployment rate is just inched higher to 5.6%. interestingly jobless claims have risen rather than declined by 9000. they have risen by 7000. the big, big news its the total pay rising by the most in five years by 3.2% adding to the noise yesterday from the governor of the bank of england mark carney who when he was speaking to u.k. lawmakers said the time for a rate hike is moving closer. i was not only mark carneyt. david miles also spoke. he said the time to start

normalization is soon. that is not something to shrink from. we have had to policymakers who have warned a risk that average earnings will accelerate market rate. so, it's definitely a crescendo that's building within the mpc for a rate hike sooner rather than later. if you needed evidence of that -- strongest total pay in five years. that is the data of the day. manus: thanks for putting that in contact. let's bring in our chief economist, jamie. the gam holdings ceo alexander friedman. yesterday flatlined in terms of inflation. today, it is about wages. this is the warning shot. jamie: i have a slightly different view on the labor markets. the reason that markets have been responding negatively is you look at employment gains,

and they have split this month. we were having a prior increase of 114,000 new jobs. this time it is -67,000. i would interpret that as being something temporary. it refers to a period when gepdp slow down. i would expect that to bounce back. we expect that growth to continue. manus: people have warned us that the second-half growth rate is not going to -- we will not emulate what was done last year. alex, when you see this data come through on wages, what does it say to you about the u.k. and whether the fed or the u.k. will go first in terms of raising rates? alex: wage inflationary pressure is a key metric. i think you see less and the united states and what we saw the u.k. if i think about how yellen is

interpreting data, she's on the -- downside except for housing. she is sensitive because of the full employment mandate to the idea of wages rising. the fed has been criticized broadly because median income has not risen. so i suspect on balance, this tips more towards the u.k. being likely to raise then the fed .that we have to see what the data and the united states looks like today and tomorrow. manus: let's remind viewers what mark carney had to say yesterday. mark carney: the point at interest rates may begin to rise is moving closer, given the performance of the economy in growth above trend. domestic costs. counterbalanced somewhat by disinflation. manus: mark carney is known for his various methods of communication. that was yesterday's communication.

a year ago at the mansion house he raised the specter of raising rates. my question to you both. jon feerrro races nicely. was carney's intention yesterday to move market perception? is he trying to forward guidance more clearly rather than be shocked? alex: i have to admit i did not see it until just now. we only -- a fair interpretation but maybe we should ask the economist. jamie: i do not know fees trying to move it. the time is passing by. if it was not getting closer, it would be strange. i think he is playing it down the middle. markets have got a rough ride. manus: alex, let me bring it back to you. this debate with yellen. her data is soft. retail sales were not fantastic. jobs data is good.

wages not there. is there anything that will stop 2015 from being a rate hike year? are you a 2015 man? alex: since last spring, i thought it would be in september. the data has softened a bit. you might say it's moving to december. i still think it is september. the fed futures for a suggested later. it does not really matter. it will take place this year. that is key. i suspect the u.k. is what. manus: it is all about normalizing. it will be a slow takeoff. alex friedman, come back again soon. great to have you with us. and ginny murray, our chief economist. here-- and jamie murray, our chief economist. top headlines. further evidence that china's economy is stabilizing with official growth figures beating expectations. gdp for the second quarter were

7% higher than a year earlier. better than economists estimate at 6.8%. exports were also up for the first time in four months, suggesting the government stimulus measures are beginning to take effect. the greek prime minister alexis tsipras says he agreed to a deal with the european creditors with a knife to his neck. that comes as the country's parliament votes on measures. -- in the agreement. the international monetary fund says that greece needs debt relief far beyond what europe is willing to consider. >> ok. copy that. we are and lock with telemetry with the spacecraft. [cheering] manus: celebrating nasa's mission control as the new horizon reestablished contact after its historic flyby of pluto after a nine-year

journey. the pictures and measurements from the tour planet. and its five moons. the batch of that data will arrive on earth later today. including images that are 10 times sharper than those sent back yesterday. the lanesborough hotel has officially opened its doors again, having closed for refurbishment since december 2013. we spoke to the managing director. let's take a sneak. >> this is our wonderful dining room. we feature old cognac. the oldest one is 1770. that one goes for 6500 pounds a shot. i'm the managing director of the lanesborough hotel. i have been here for a number of years. i opened it in 1991. the lanesboroguh has been closed for a year and a half

undergoing refurbishment. we wanted the hotel modernized, and we wanted a fresh new look. we wanted to keep the regency style, which is the same time the building was built. the lanesborough hotelis a special hotel. one of the things that has always made it special is its butlers. he's trained to meet and greet people. he can go to the shops for you, walk the dog. he is there to help. this is one of our buckingham suites. you can see the attention to detail. the stenciling is over 2000 hours of stenciling. those are hand-drawn shadows done by 10 people that took them three months. our customer base is primarily north americans. but this is very diverse.

the next largest conservator is european. -- contributor is european. these are the most sought-after cigars in the world. they were made by castro's personal roller. it took i think, for years to make 4000 cigars. each one retails for 4500 p ounds. manus: up next, not so yummy is the company behind kfc and pizza hut sees sales slide in china. ♪

manus: welcome back to "the pulse," live from bloomberg's headquarters. yum brans -dds sales missed estimates in the second quarter. the company behind kfc, pizza hut, and taco bell have not fully recovered from a food safety scare in china. yum ownearns half its revenue from there. same-store sales were down 10%. the crush at a religious pilgrimage in india has killed 27 people. it happened as tens of thousands

of people gathered at the river. believers say a dip in the water, can wash away sins. modi tweeted his condolences. tbhp village and says it will write down $2.8 billion of onshore asset energy -- bhp bi liton. bhp's gas focused hawk -- will account for the majority of the right job. the companies president described the charges -- asit doe s not reflect its broader onshore u.s. business. breaking news. this goes back to the british financing on -- the bridge financing on greece. greek bridge finance plans seek guarantees from non euro officials.

this comes down to the necessity for a bridge finance put in place before the full bailout is enacted. the e.u. says greek debt will be 165% in 2020. this is in response to the imf talking about debt sustainability. e.u. officials say one option is using the security markets program as a guarantee. profit held at the european central bank from bond sts they hold. talks are ongoing on guarantees. that ties in very clearly with the imf concerns, which they raised in their debt sustainability report announced overnight. ok, as we get more breaking heads, we will bring those to

you. today marks six months from when the smb dropped its cap on the siwwiss franc. how was the currency. one man who knows a thing or two about fx, is the head of fx strategy adam c ole. ole. we traded down to $.97. europe is still in the eye of the storm. the swiss franc is still a store of value. adam: the smb is unhappy with that. what we are likely to see is again short-term management where necessary in terms of relatively modest fx intervention to keep an unspecified floor under euro -swiss. snb very much hoping -- focus moves away from greece and

peripheral europe. the safe haven status of the currency. we will see it's often back towards fail they -- fair value. we do not expect anything more radical in the near term. longer-term, pressure will ease. manus: very well put. . by max question on the list -- my next question on the list. what is the value for euro -swiss? what is the ideal spot? adam: far above where we are now. agbove where the old 120 floor was. fair value is slipping through time because -- there is deflation in most of the rest of the world. somewhere 5% of 6% above is fair value. by the standards of fx misalignments, the swiss franc is overvalued. manus: the canadian dollar they

have got a meeting in canada. it's the weakest since 2009. they are on the brink of recession. they are linked to china. do think the canadians will cut again? how do you position yourself on canadian currency? adan:m: it is a close call on today's meeting. the market is 50% price for a cut. we think they will. the downward pressure that has emerged on oil prices is probably sealing the case. what i would say is i think it will be a bigger market reaction if they do cut. if they don't, the market will grow forward expectations to a cut at the following meeting. so, we're negative on the currency. lower oil prices helped. but it was negative already. we like, we aker generally against other commodities. manus: speaking of euro

-sterling. what a move. we are back at levels we have not seen since november 2007. carney yet again, last year at the mansion house, get ready for a rate hike. yesterday his language was we are moving closer. david meyer says don't be frightened. where are we? do you think euro-sterling travels higher or is it price in? adam: i think you go from the sterling side rather than the euro side. not structure that negative on the euro going forward. the u.k. rate hike is not fully priced until the spring next year. on violence -- balance, that is likely to move closer or further away going forward. today's average earnings data were not helpful in that respect. they are not game changing. on balance, we think the odds

favor a rate hike this year. manus: i'll let you go and answer the telephone. adam cole, global fx at rbc. time for the bart chart. mark: which companies are said to benefit from the iran deal? it is easy to focus on the oil companies. bp royal dutch shell, they have got expertise. step away because iran has not been exposed to western goods for the better part of 10 years. ilooking at three sectors'. two are sectors. one is france. france has the most cordial relationship between itself and iran. its french carmakers renault and peugeot have large but dormant operations in iran.

this is one of the companies within the auto industry that could do well. it was peugeot's second-biggest market. car sales in iran are set to reach record levels in 2017. renault haulted exports -- halted exports two years ago. like french think auto. the second one, think luxuries. french and italian luxury companies hope to benefit from the opening up of rht the iranian economy. probably not on the streets of tehran because of advertising rules. instead, they will try to entice them to gulf states and europe. companies like lvma should benefit such as hermes and pr ada. the final sector is tobacco. tobacco companies are eyeing up an iranian population that

smokes 53 billion cigarettes a year. iran is the largest tobacco market in the middle east. bat already sells cigarettes in the country. intelligence acid it said the best bet would be on bap, phillip morris japan tobacco and imperial. think france, think luxury, and think tobacco. those of the areas of the european economy that could benefit from the opening up of riairan. there you have it. manus: good work. coming up next, the brave german giving out hug in athens. ♪

manus: welcome themanus: back. germany is not exactly flavor of the month in greece. burtt there's one german comedian trying to spread love on the streets of athens. bloomberg went to meet him. >> what are you doing here? >>i give hugs to people from greece. repoerrter: what has the response

been? >> the responses -- we are here. i want to gvieive some free things. we pay everything, so i want to give free things. we love you too. we love. today, we are on the road four hours. over 50. reporter: 50 hugs. >> people are very friendly. but they hate merkel, but they don't hate me. reporter: no one has tried to punch you yet? >> no. there was a girl from france. she said, be careful. they want to hit you. but they didn't hit me. can i hug you? reporter: we feel better already. manus: we like hugs on

bloomberg. for our viewers, the second hour of "the pulse" coming up next. the fastest wage growth in five years. on a planet is rising in the u.k. what happens next in greece greece. -- in greece? ♪

manus: chinese growth needs estimates, but beijing may back off of the stimulus program. a knife at my neck. alexis tsipras says he was forced to accept the deal from creditors, which the greek parliament will vote on today. the imf says that greece needs that really far beyond what greece has been willing to accept so far. all eyes on janet yellen as the market waits for clues on when the rate rise might come.

good morning to our viewers in europe good evening to those of you in asia and welcome to those of you waking up in the united states. i am manus cranny and this is "the pulse." at the bloomberg headquarters in london. let's get to our chief economic correspondent. you are in hong kong. the chinese gdp numbers have come through. the question is, are they sustainable, 7% what do the numbers tell us? >> when you consider where we started, things were gloomy on the china outlook. people were saying that the government would struggle to meet its growth target. with a buying policy and government target stimulus, i would say that they have things

back on track nicely. sales are picking up again in housing, industrial output is showing signs of strengthening and for the consumer, cinema sales soared. given where we were in january it is a bit of a turnaround. manus: given that they have had full rate cuts and reserve requirements, the question is is this continuing? is it a soft landing or a hard landing depending on whose research that you read? >> there is a wildcard, that was a beneficiary for growth in the first time because of all of the activity. that will most likely not be there in the third quarter, so

that is taking out a key component from the equation. if we see ongoing progress in the u.s. chinese exports are already picking up, so that would be positive for them. we are seeing a pickup in the real estate sector, as i said earlier that it is hard to see the central bank out of the game just yet given the overhang. manus: do you think we will see another rate cut? they have an ammunition bag more so than everyone else. the rest of the world is looking at raising rates. >> it is night and day to from what you see in europe and from what we read about with the fed. they can make it lower to make it easier for banks to lend money into the real economy they can have liquidity through target lending into the target sectors, and the government is in a strong fiscal position for pumping money into the economy. they can take lots of action is

needed. most people feel that at the very least we could be looking at another rate cut over the three months. it is hard to say until the policymakers are off the stage. manus: here's a look at what else is on our radar this wednesday morning. alexis tsipras says that what he agreed to with the european creditors he agreed to with a knife to his neck. meanwhile the international monetary fund says that greece knees debt relief far beyond what europe has been willing to consider. amazon is celebrating its 20th anniversary with a one-day sale that will be bigger than black friday. prime day will see thousands of deals, but is only available to amazon prime subscribers, who pay for free same-day delivery.

and interest rate increase will so be warranted then it will increase at an annual rate of 3.2%. this is the fastest the unemployment rate rose to five point 6% the first increase in two years. janet yellen will adjust u.s. lawmakers today. in her testimony she said last week that it would probably be appropriate to raise rates later this year. that brings us to our twitter question. have a look at this. connie or yellen, who will raise rates first? what do you think? do you think the raise numbers

will push mark carney's hand? or will janet yellen take the risk and raise rates in the u.s.? join me. i'm on twitter. ♪

manus: welcome back to "the pulse." life on bloomberg television, and streaming on bloomberg.com.

prime minister alexis tsipras on tv last night said that he had only agreed to the deal with a knife to his neck. >> let me tell you the truth and allow me not to paint a beautiful picture. the night before the previous one was a bad night for europe. it is not a night that shall be remembered in the future believing some values remained toward european solidarity and democracy. the result of the european summit was pressure put on a people who are cited in a democratic way. we were made to go toward the wishes of the most powerful people in europe putting circumstances of blackmail and suffocation. to agree to requisites or go bankrupt that is to leave the eurozone. then there is the wolfgang

schaeuble version which is not to go bankrupt, but have an agreement. manus: let's bring in our correspondent who is in athens. hans nichols is in berlin. the parliament has been debating for the last hour and a half since we have been on air. what can we make of alexis tsipras' language? blackmail. suffocation. >> he called the creditors revengeful. this was his opportunity to talk to the greek people about the plan he agreed to. he talked about broadening the tax base and raising the sales tax something that he said was a rational and that he had to

agree to. he talked about tension reform. he talked about raising the retirement age. he says it is not progressive. people should be able to retire at the age of 50. the meeting is expected to continue until 6:00 this evening. there will be a short break. then they will reconvene around 10:00 tonight. then, the debates could go on well into the early morning. manus: the banks are still closed. that will continue to be the situation. you need to get bridge financing in place. that is where we are seeing a little bit of progress this morning? david: it is something everyone is talking about. the banks will be closed through tomorrow. the bridge financing is on everyone's mind. the report you alluded to this is having a lot of downward

pressure on the economy. the banks are still not open. manus: david, thank you. we will touch base with you as the day goes on. hans nichols is in berlin. it seems as if the imf -- these are very interesting times. what do you make of this discussion they put out there on sustainability? hans: it is not a criticism of the deal that was midwife in brussels over the weekend. it is important to say that this is not a criticism of the final deal. they are joined by the european commission, who released their own debt sustainability announcements. there are clear that some of their numbers are off, but the imf and european commission are on the same page that the greek debt is not sustainable. with the european commission is saying that in 2020, the

baseline scenario is 165% debt to gdp ratio. in a worst-case scenario that goes up to 187%. the imf is saying the debt to gdp ratio in 2017 is 200%. you are seeing the old argument the brief left up saying that the -- what you are seeing is the old argument being re -fluffed up saying that you can extend the maturity, but you cannot yet the debt it down. we have a situation where the imf, the best ally of alexis tsipras, who is making the same argument. alexis tsipras wanted to throw the imf out of athens. manus: let's bring into the conversation a deutsche bank

senior economist. it is great to have you with us. they imf says it is not sustainable, the eu says it is not sustainable the germans won't comment on the debt. a huge extension has to be delivered in the next few months. >> one thing to make clear, debt relief has always been on the table and's 2012. it is not a new thing. it is a battle that has already been one. giving them a haircut is actually in the same. greece is paying less than they did in 2007. manus: everyone is talking about debt relief. if that had already been agreed in a very casual manner, it must

matter. marco: it matters a lot politically in greece. alexis tsipras and may be when domestic political opinion by saying that we got debt relief. that is a victory for greece. we speak about big numbers, it is easier to talk about 200% of public debt over gdp. if you want to succeed with this problem you need to implement the reforms and get greece to grow sustainably over the meeting terms. manus: he has to implement reforms. what is the priority. what would help begin growth? marco: public administration the justice system, they have liberal market reform, that is not a quest -- it is not a

question of passing it through parliament. you have to take political ownership of the reforms. that is tricky now. manus: the debate is ongoing in athens at the moment. they're taking their time debating the merits. there are splits within syriza and no one is sure if alexis tsipras will politically survive . one commentator says he owns this austerity. that alexis tsipras owns this agreement. he has a political mandate. if anyone can implement it, it is him. they talk about breaking the bond between them. that is the structure reform that we want to see? marco: if alexis tsipras takes ownership, showing that they could reform, that they

could get ownership, then we might have a chance. manus: i'm keen to understand your view of the 50 billion in assets of a sustainable variety. it was in a fund that might be delivered from funds that are privatized. recession is the real issue? marco: we have had this 50 billion before. debt relief was there before. we tried cavitation before. -- we tried privatization before. i think, as were debt relief, this is a political argument to help the creditors. manus: the banks are still closed. they have to get bridge financing in place by friday?

is that a reasonable expectation? marco: they will have to pay the ecb. they are mentioning technical and legal problems, but i would be surprised if everything fails because they cannot put together bridge financing. manus: the banks are still closed. the ecb is lending just under 90 billion to the banks. when, in your opinion, good day extend credit to reopen the banks? marco: i do not think we will go back to a place where everyone can withdraw freely because the grexit is still there, and there is another big chunk of deposit withdrawal is possible, they will increase the cap gradually. manus: give me your broader perspective of greece.

we suddenly remember that we have qe. what you think of the economy in europe, china, and the risks? marco: if we could step out from greece for a moment -- manus: please, please, please do. marco: you can see things in january that we see in june. we trackback macro news in the area. we show you the speed of the economy. it improved in june and was better than expected. it is too early to see the impact in greece, but over the past six months you had forecast spirit revived for europe and restored. the growth forecasts for the world were down because of china.

manus: fantastic to have you with me. the senior european economist at deutsche bank. amazon is celebrating its 20th birthday. everyone is invited. we'll tell you about the online retailer's party plans, coming up next. ♪

manus: it has been 20 years for amazon. that is quite an achievement for businesses that only posted its first profit five years after listing its shares, something the company has been criticized for. >> they make no money. you're not a real business until you make money. i have a hard time with businesses that don't make money. manus: amazon has been making money for two decades, and they are celebrating their success today. caroline: they make money in revenue, but they reinvest it in the business. that is what he was criticizing, no profit. there are billions in revenue and they want to add to them today during the 20th birthday party during prime day.

they will offer more deals the black friday and they say it could bring in more money than black friday. they say this day alone could boost e-commerce in the u.s. by $2 billion. that is the equivalent of cyber monday. it is not as big as alibaba's singles day, the equivalent of valentine's day. if you want to go on twitter you will see many are annoyed by the lack of deals, but many are saying that they can only by tupperware. as is not only to try to get the products off of the show was many made by amazon themselves, but it is to boost subscriptions . they want to take on netflix and hulu. they are not only about commerce. they want to make us addicted to amazon.

it is about buying everything online, and viewing videos, they make their own content and the streaming of music. they want to pump up members. you only take part in prime day if you are a member of amazon prime. if you are prime now you can get products in 2 hours. this is where the growth trajectory along with web services, this is a company that continues diversifying. the first time they sold a book was in july in 1995. the first book was meant to be a computer book, but it was bought two decades ago then it traded on nasdaq in 1997. it took them five years to post a profit.

the diversification is significant when it comes to amazon. look at the other businesses they have been building upon. they introduced amazon prime in 2007. they have been introducing hardware -- manus: thank you for putting that in context for us. these are live pictures. these are public service workers that are on strike. they are holding a strike.

they are down there in the main square in front of parliament. as you can see, it is a fairly peaceful demonstration. the parliament is debating the set of measures offered by alexis tsipras when he had a knife at his neck. ♪

♪ manus: welcome back to "the pulse." live from bloomberg headquarters in london, i am manus cranny. we have had further evidence that a chinese economy is stabilizing with official growth figures beating expectations. gdp was 7% for the second quarter, higher than a year earlier. that was better than estimates of 6.8 percent. exports were up for the first time in 4 months, suggesting

that government stimulus efforts are taking effect. alexis tsipras says he agreed to the deal with european creditors with a knife to his neck. that comes as that country's parliament will vote on the measures. the imf says greece needs debt relief far beyond that which europe will consider. >> we are in lockwood telemetry with the spacecraft. [applause] manus: celebrating nasa's mission control as they established contact after the historic flyby of loadout. the probe took pictures and collected measurements from the dwarf planet and 5 of its moons. we have images of pluto 10 times

sharper than the images sent back yesterday. enough jubilation. let's go to jon ferro on the markets. jon: she chinese -- the chinese gdp is coming in better at 7%. the story from corporate is different. one of the biggest losers is burberry, they are concerned about sales in hong kong. they are spending less cash. in mainland europe we are in a six-day winning streak. the previous five days we added 8%. some heat coming out of the market. a half of 1% and italy. it is the periphery that dominates the bond market. the extra yield that investors

demand over germany stocks come down a little more. spanish yields are down by five basis points to a little over two percent. german bund yields are coming up to 0.8 8%. you could call that risk on. the concern does not go away on the implementation work. you have an agreement that will be implemented. in the greek parliament, it is expected to pass, but in the years to come, can the greek government stay the course? euro sterling, this one just bouncing off a november 2007 low . bouncing off because they unemployment data came out and the sterling started to weaken. unemployment rising wage growth not as strong as expected. maybe you can spin the story a little because the drop-off was in part-time jobs. full-time jobs increased.

vacancies are high. is it a sign of confidence with wage growth at a five-year high especially when you factor in zero inflation. pay is still strong, people are leaving their jobs and looking for a better one. that is one side of the story. the other side of the story is what is happening in another sterling cross, the pound against the dollar at 156 point 21. a rate hike could come sooner. it is the 2014 game. who moves first, the bank of england or the federal reserve? are carney suggested their hat is in the ring as well. you have janet yellen versus mark carney. it feels like we are doing 2014 over again. manus: 25 minutes time.

"surveillance" takes the airwaves. tom keene joins us for preview. i was just looking at the images. there are small protests on the square outside of parliament. their peaceful. the debate is going on inside. if the debt sustainability of the imf, this seems like a tawdry affair just to get everyone out the door. tom: the focus today will be on offense as alexis tsipras tries to rally the nation around what he believes and i would agree with jon that far more attention is on brussels today. the size of the debt owned and the execution of what we will see over the next weeks is a massive mystery. we will go to hans nichols for a further briefing.

front and center in the united states is what the imf has done in the last 24 hours. they are taking a hard-line stance against the european union. manus: absolutely. the other market focus would be janet yellen. she raised the flag last friday night talking about the possibility of a rate hike this year. what do people say? tom: michael mckee will join us to break this down. it is important. in the last few days there has been very soggy data within the american economy. it is enough to take a firm like macroeconomic advisers, which looks at gdp every day and they have dampened their second and third quarter reviews. though not been enough to sway janet yellen that a q&a to a more fractious house versus the

diplomacy in the senate could make for interesting moments later in the morning. manus: that lady is getting better versed in communication. as always, we will be watching the show from the other side here in europe. coming up, we are talking about driverless cars on the road in 10 years. we look at the company planning to make that happen. ♪

manus: welcome back to "the pulse," live on bloomberg television. one israeli company is booming in the driverless car business. mobileeye. our bloomberg editor went for a ride. >> if you see a self driving car, and it is not one of the googles, h are it has technology from mobileeye. they plan to be master of the economist driving domain.

>> mobileeye expects -- >> the drivers are plenty. the automakers are waiting. >> by then, most of the revenue will be derived from driverless vehicles. something that could be worth $40 billion in the future. his growth has already made billionaires of its founders. it has left the competition trailing. >> there's a reason why there are so many it'll number of players. we can lay out the states in front of us. within this free state, -- >> what was it like behind the

wheel? it was time to find out. >> i'm not sure if i feel completely relaxed being in the self driving car, but i think i found something that might help. there we go. they will be the first seller cars that a you do this on the highway. this is bloomberg, somewhere on highway one. manus: amazon turned 20. facebook topped $200 billion yesterday.

let's discuss all of these issues with our guest. great to have you with us. apart from elliott's sox in the package, everyone wants to get involved in driverless cars. when will it come to fruition? is that elite forward in technology, likely perceive it? >> it is massively forward. anyone who grew up watching science fiction or cartoons like the jetsons, has thought about what it will be like when this hits. i think it will be within the next 24 months. major manufacturers are coming out with these cars in the next two years. it will become mainstream. yet testing in the u.k.. you have google testing and the united states. manus: is it convincing us? is that the issue?

convincing certain demographics with higher disposable income, and i'm being generous it is convincing us to take that leap of faith. >> companies like uber they will be exposing people to the cars for the first time without you having to test drive. people would think this is a no-brainer. manus: and maybe my insurance could come down. we also saw that today is amazon prime day and it will be bigger than black. amazon went from a book seller to flying drones to all over. looking at it from the technology space what do you make of them is on? eileen: it is a fantastic company.

i think that his vision and leadership is extraordinary. i think he stays under the radar with his head down. he is not trying to get headlines, but he is running a fantastic business. it is interesting how influential they are with cloud-based services. what people do not realize, in addition to buying stuff online they are powering the next generation of start up and tech companies by doing cloud hosting. of course, there's everything you described, which is prime videos, going into production trying to do delivery which you have seen. they are rivaling institutions like walmart, who is now trying to compete with prime day. manus: you and i have had a sparring discussion for a number

of years in terms of payment. eileen: i thought you agreed with me. manus: i've been using my apple watch to pay for coffee at my favorite coffee station. apple is one of the biggest purveyors of payment systems in the united states of america. you have always maintained that facebook will dominate this, as well. this seeds your business? what is the biggest challenge? eileen: consumer adoption. we need to get people to use them. what was great about what apple did, was the number of partners they are working with which they launched all at once. it seemed like it was everywhere. it was not just at starbucks one retailer, or one service

provider. it was at the banks, on the tube, where people were used to consuming products from. the challenge will be consolidation or compatibility between the different services. all you need to use apple for one service, google for another set, or they spoke for another set, are you just want one wallet. manus: i suppose it is about adopting. usually you have one mold. eileen: and you stick with that. manus: tell me about your new job. i have been to a couple of gigs at number 10. you are not cozying up to number 11. tell me about your new role. it is quite fortunate for the

next steps of this government and syntax. >> treasury as a special envoy in sontag in the u.k.. we've talked about what is happening with technology disruption. my role will be to try to champion semtech across the u.k. and international robot of other technologists are looking at london in the u.k. asking how you establish leadership and financial services. i do not know how cozy i would get with lawmakers, it in terms of what we need to do to continue encouraging and enabling services in the u.k. which is a huge contributor to the gdp. manus: we wish you well with that. come back and talk to us soon. ealexis tsipras' battle to

pass the first bailout deal through parliament. stay with us for a little bit more. those are images of the greek parliament, where the debate is taking place right now. ♪

manus: welcome back to "the pulse" on bloomberg television and streaming on your ipad and on bloomberg.com.

adjusted earnings per-share topped out estimates at $4.96, the estimate was $4.79. in terms of athens under management, they rose by 3% at 2 billion revenue. revenue also beat estimates. black rock is delivering numbers that beat estimates. germany is not flavor of the month in greece. with chancellor angela merkel and finance minister wolfgang schaeuble attacked for the hardline they took in debt negotiations. one german comedian is trying to spread love on the streets of athens. bloomberg went to meet him. ♪ >> what are you doing here?

>> that question applies to you more than me. >> i give hugs to people in greece. >> what has the response been so far? >> i want to give some free things. we pay everything, so i wanted to give some free things. >> you are my friend. >> we love you. >> today we are on the road for 4 hours. i have given over 50. >> 50 hugs? >> 50. people are very friendly, they hate angela merkel and wolfgang schaeuble, but they do not hate me. >> know it has tried to punch you, yet? >> i thought they would punch me. there was a girl from france who

told me to be careful, they want to hit you. but they did not hit me. i can also hug you. >> i feel better already. manus: it is time for what to watch. david is in athens looking for the love. it is all about parliament behind you. there is a protest in front of the parliament. give us a little bit of the choreography of the day. when do we think we might see the parliament vote? david: the parliament right now has been meeting for a couple of hours. the expectation is that it will meet until 6:00 local time, then they will break, then they will come back at 10:00 in the evening with the debate going into the early hours. also, we have a word on

public-sector unions striking today, parts of the metro system is striking, there could be a communist demonstration at 7:30 in the square. we will be paying attention to the reaction to news from the imf and the european commission. this is something for a lot of people to hash over in greece and around the world. we are looking at the banking system. it is still closed. the word from the government is that it will be closed through tomorrow. that is applying downward pressure on the economy in greece. manus: that tv message that alexis tsipras delivered to the nation, the language was very strong. he talked about black male. he talked about how the scenario was sign or be booted out and go bankrupt. this is a leader who is communicating with the whole greece?

david: that was his first opportunity to do so. he called the creditors of her he lavished some praise on italy and spain. they were strong words from him. it was an opportunity to throw red meat to the people of greece and to talk about parts of that plan. people are skeptical and upset about certain parts of the plan like pension reforms and raising the retirement age. last night that interview was his first opportunity to make his case and explain why he agreed to that deal with members of the european union. manus: thank you for wrapping that up. that is it for "the pulse." we have "surveillance" coming up next. little change in the stocks in europe. we have had the biggest five-day rally since 2011. let's see what the greek

parliament decides. debt sustainability is topping the agenda from the imf. this is alexis tsipras' moment in parliament to convince the country to sign up for austerity. that is it to from "the pulse." ♪

announcer: this is "bloomberg surveillance." tom: greece plus fiscal picture deteriorates by the day. tsipras asks his nation to live in greater austerity in athens.

janet yellen will try not to mention greece or china as she speaks to house members. the september meeting is nine weeks away. earnings season is upon us. it continues. bank of america. good morning, everyone. this is "bloomberg surveillance ." it is wednesday, july 15. i am tom keene with brendan greeley and vonnie quinn. rendon, i guess greece -- brendan i guess greece, hans nichols is the most important person. brendan: the action is still in what germany is going to do. the most important conversation is happening between the imf and germany. do we recognize the reality that greece is insolvent? tom: right now we need an update. here are our top headlines with vonnie quinn. vonnie: in greece, the parliament votes on a deal