eyes turn to germany today. i was thinking about that because it was not necessary for the bank not to include that. our bank did not have a problem with that.

>> when will the banks open? >> when they increase liquidity. >> when will he get those heroes? >> it will not pay back our debt. it's should be within the next few days. they're still working. but that will prevail. >> what about people on the street? deborah violent protests. do you expect that to continue.

>> breaking news now on the european central bank. the ecb is in favor of keeping the cap on greek banks on hold. we know that stands just under 90 billion bureau's -- euros. the greek central bank asked for

an increase of one and a half billion eurps. -- euros. the bank of greece spokesperson has declined to comment. we are waiting on this final line. there was no reaction there. let's get the one of our top corporate stories. netflix is the top-performing stop. what a barnstormers has been. it starts at another 10%. after posting stronger international subscriber numbers . rodrigo, they beat expectations across the board.

>> i would say most of it has been with international expansion. they reported 70% more subscribers to the service. 50% more revenue. this joe several surprises across the board. tickets -- people not concerned yet. >> this is an acquisition strategy. go on the subscriber list that is the business model. >> they have moved the several bigger areas now they have spain, portugal, and it delete -- italy lined up.

the next year they're talking about going into china. they say that will be challenging. >> of course i am personally disappointed. i do like frank underwood. he is a good man. they are teaming up with the disney and the people who directed "the matrix." they are going down some amazing new original programming. "orange is the new black," there is a whole feast of original content here is an? >> engage is the word they use. they are rolling out more and more. they also have "daredevil" and

several others. the already have an mexican film lined up in spanish. they're definitely going down that path. >> thank you very much for the breakdown. i do a mean frank underwood impression. that is not for today. ofcom is reviewing a possible breakup of bt group. what are teh c -- the chances of bt breakingup? kasper: the current consensus is that bt is likely to survive this. it might face some other remedies. but then again today's news is

quite significant. the timing of it they are in that rivalry. there is a whole discussion. kasper: talk talk and sky have been pushing hard for open reach to be separated. it brings them in underlying incentive to discriminate against competition. then again i mentioned english premier league challenge. it is trying to push the argument. >> it is pretty amazing what bt has done. in such a short space of time how long could any of this take? the review starts, how long did

that take? kasper: probably earliest decision by the end of the year. after that, the implementation would see legal challenge from bt. with a get several years. manus: what about broadband issues? thank you very much. let's give you some of the other top headlines. they sear -- surged 15% in june. they were bought by new models. 144 open championship begins today. jordan spieth, who won the masters in the u.s. open is favored to win. defending champion rory mcilroy

is sitting it out with foot injuries. nasa has released the first close-up photos of pluto. the images shocked scientists showed mountains of ice towering over the service. nasa said the photos showed signs of ongoing activity. we go back to athens. we will hear from a member of the greek parliament. ♪

manus: welcome back to bloomberg television. now more than 30 members of the greek prime minister's party opposed the bailouot. it leaves the governing coalition divided. we speak with one who voted against the deal.

>> you don't give up. >> doesn't have added symbolism? >> yes. you fight you don't give up. >> i care about the future of the greek people in the future of my children. and the future of my family. this is not a matter of the future for anyone else. i am a member of the greek parliament. but we must realize how tough this is for the greek people. i call the prime minister alexis

tsipras to say this is blackmail. i know he was blackmailed. the government of greece, he said i prefer to die than betray the people. the greek chairman, thank you. manus: let's give you a check on the equity markets.

they are still holding onto their rally this morning. the dax is cracking. this is the seventh straight day you have seen a rally there. the longest winning streak since january. european car sales are up. have a look at the cureerency boards. bureau is down -- the euro is down 1.5%. we understand the greek central bank made a request for a raise of 1.5 billion euros. but they recommended was to keep it in place for now. we bring you that press

conference here at 1:30 london time. ♪

>> the ecb is likely to keep the greek banks on hold. mario draghi's press conference is in athens. reiterating the u.s. central bank will hike its main interest rates this year the first in almost a decade. international margarets song netflix sore in its subscriber base.

a very good morning to our viewers in europe, good evening to those in asia, good morning to those in the united states. i am manus cranny, live from our london headquarters. the focus is on greece. in the last hour we have learned that the ecb will favor keeping the cap on the greek banking on hold. the bailout passed to the greek parliament with a majority of those, a world away from the syriza party. hans nichols is in berlin. let's go straight to you paul in frankfurt. the ecb has left the liquidity on hold for now?

paul: the decision isn't over but it looks as if the liquidity eight for greek banks will be rising. the executive board of the ecb left the rate unchanged and we understand the opinion going into the meeting was that the rate should be left unchanged. the key is that the political negotiations are not over. the greek parliament has signed off on austerity measures, and that allows the talks to start. they will not be finished until after july 20 when the ecb must be paid back 3.5 billion euros by the greek government and full financing needs to be in place -- which it is not at the moment. manus: thank you very much. caroline you are down there where there were riots in the square. when you actually read what tsipras said, that i am the last

person to advertise this agreement, with which i disagree on many fronts, no wonder he had defections from his own party. caroline: when he calls many of the choices irrational that they have to swallow. you are right. more than one quarter of his own politicians in the syriza voted against the bailout reforms or abstained. people are questioning his leadership. his options are to continue ruling with a minority government and potentially having to depend on opposition parties to get through the next stage of reforms, the next vote comes next week when they vote on the $50 billion asset form that will be formed, and then busy actually bring the opposition into his cabinet and run the country that way for the

next few months while they come back from the brink and save their banks. does he depend on the opposition in that way? is there a call for new elections? many feel that he still has the vote of the people. is he strong enough? as soon as today we could see a cabinetry reshuffle. many prominent members of his cabinet voted against him. the energy minister came out and said that he would resign if asked to back alexis tsipras. he could be asked to resign. in the time being, it will remain a minority government. no one wants greece to exit the eurozone. the opposition will vote with him for the time being. manus: i know that the political force in greece wants

to take greece into an exit. wolfgang schaeuble warned that achieving greek debt sustainability will be difficult. is that the understatement of 2015? ons: wolfgang schaeuble has a solution, which is a temporary exit from the eurozone. will the math and politics work out? will they get the bridge financing? wolfgang schaeuble says you cannot have a haircut within the eu, and the debt restructuring and the size of debt is not sustainable. his solution is a temporary exit . the overall debt projection even on the baseline scenario, there is a 165% that to gdp in

2020. the eu numbers are more optimistic than the imf numbers. either way, look for more pressure to be put on wolfgang schaeuble to try to figure out how to reduce the overall debt burden. jack lew, they are very much -- the americans are very much in line with the imf. you cannot have a third deal unless you have a debt restructuring. as to wolfgang schaeuble is saying that that is not allowed. at least under eu treaty rules. manus: just before we finish the rack tag response to bridge financing is quite surreal. in the united kingdom, the chancellor is looking for guarantees that the united kingdom will not take a hit in

terms of any money that might be used to bridge finance for greece. hardly a harmonious response to six months of negotiations. paul: what has happened is that the euro area has been damaged. those scars might not heal. the euro is no longer irreversible. those are the words that ari drug used three years ago. greece came very close to exiting and wolfgang schaeuble is still suggesting that it could be done. manus: thank you very much. we bring you the press conference live and in full at 1:30 london time. that brings us to our twitter question. we struggle with this win today

but we thought we would keep it simple. what do you want to hear from mario draghi, today? tweet me. i am @marcuscranny. the greeks have run out of negotiating power, and drug you would say the union is bearing the weight. differentiating -- the responses are myriad. . in terms of what we want to hear from mario draghi. join me. let's get an opinion from the head of european economics. ken, you'll is sent to reporters. we have headlines, that the ec you believes that the liquidity will be unchanged. what will it take to get the ecb to move? ken: it is a difficult juncture

for them. we have seen the first round of approvals on the greek parliament which is welcome. this debate going on about greek financing to meet the bonds of the ecb next week. they may conclude until they know where they are on those factors. they probably think they are already being rather accommodating given the size from the greek banks. this is becoming more and more politicized which is uncomfortable for the ecb. manus: it depends on what you read, where the bridge financing will come from but it appears it will come from a bailout fund. good politics caused this final hurdle -- could this be the final straw that breaks the political back? ken: there is an issue

providing the financing to greeks politically is controversial. the back story for the u.k. government is that they were told that this would not be used for these reasons. this fund will not be used for financial assistance, and the u.k. would not be involved. there being implicated with a guaranteed. knowing how controversial this is that this is being used it shows you there is a struggle to find the financing. manus: we heard hans talk about wolfgang schaeuble. he said that achieving the greek sustainability will be difficult, and it is unsure how they could restore it without a haircut. where are we in the sustainability debate?

it is not that it hasn't been on the table, it has just been in a different form. ken: the german finance ministers decision has been made clear. the german government is in a bit of a bind. the german government's position has been to require the imf is involved in the program, but the imf recommendation is a redline for the german government, a nominal reduction in the outstanding debt. there is a compromise which is in the imf recommendations, which is a longer grace time longer maturity, and focusing on the needs rather than the debt to gdp ratio. there is a way forward to giving the germans imf involvement, but pushing back the debt sustainability and focusing on immediate financing needs. manus: greece has implemented

more austerity than anybody else in the past five years in the eurozone. they have not done the structural reforms. how does greece get back off of its knees? ken: you have to separate the fiscal adjustments from the reforms. the -- if the greek government had conducted itself differently we could have focused on the reforms. from the eurogroup perspective it is fair that there needs to be radical changes in the way the greek economy is structured. on the reforms side, the agreements are understandable and necessary. the problem is making the debt sustainable. it is so painful after a motor year adjustment there is debate if it is achievable.

it is interesting to look at the governments. the greek prime minister is saying he does not support the measures. i was blackmailed. the government does not believe in these measures. manus: if that is coming from the top, why would you pay your taxes? ken: that is not a firm basis for another round of negotiations. manus: why would i go to the tax office, when the man is saying that he would protect me from harsh stuff. ken: he thought there was an immediate need to pass these measures because the consequence would have been a removal of the financing to the banks. he is saying that they would probably revisit the terms at the summit before long. manus: thank you for putting that into perspective for us. ken wattret. let's look at what else is on our radar this morning.

european car sales. they rose the most in five point five years. registrations rose from 15% from a year earlier. volkswagen and ford attracted customers with new models and the economy expanded. this is cyber growth of netflix soard to 65.6 million subscribers. their stock soared in after-hours trading. they are taking an opinion -- up next are you better off listening to french radio today instead of janet yellen? >> the high corrective

observation of the fed, and the reinterpretation, i find it far more helpful to listen to french radio stations. manus: an example, if you will. after the break we will bring you more of our interview with the controversial fund manager. then an exclusive conversation about smart phones, speakers and beats.

manus: welcome to "the pulse." live from the bloomberg headquarters in london. earlier we brought you some of our interview with hedge fund manager hugh henry. here's what he said about greece. hugh: greece is tragic. just as i told you that this was my triumphhant language that greece needs a grown-up economy. the one thing the greek people lost most is a normal political economy that we have come to

accept as normal. manus: hendry, never short of the word on what is going on in the world. hugh: the fed should chillout. their hyperactive observations, and the reinterpretation -- i was having a conversation with an intelligent are you maki -- an intelligent market making chap the other day who said they were going to raise rates and the german said this and that. for me, i find it far more helpful to listen to french radio stations. manus: what do you get on french radio? this is the cohead of the european economics. he is never short of a comment.

we will have more in regards to the fed and the u.k.. where are we with the fed? janet yellen was telling marketplaces, you better be ready. she is pretty sure they are ready for liftoff. ken: taking rates higher has been the signal for a while. she mentioned the risks associated with the weakness of the chinese economy and greece. if those two situations do not deteriorate, they will raise rates. she made the point that if they leave it too long, that might mean when they do lift rates they might have to move at a more accelerated and destructive fashion. that is the strategic argument in moving early. manus: a quarter of a percent is not a straightforward raising

process. ken: with the legacy of the financial crisis and the high levels of debt, what they want to do is to move gradually. she is saying that don't interpret a early move as a desperation to get rates higher. interpret an early move that if we move early we could move less aggressively, and that could be less destructive in the long run. manus: a misstep could be that central banks could raise rates and they are not economically fit to bear it. from an economic perspective are they behind the curve or is it time that we see developed markets raise rates? ken: different markets have different mandates. but on the fence mandate, they say that installations are low but inflation's lack cycles. they need to be prudent in thinking that where the

inflation will be. you look at the unemployment rates, it is probably below where the fed thinks it should be having taken down the expectations on where the narrow is over time. on that basis you can understand why they are thinking of taking rates higher. the question is, how sensitive with the economy and markets be? if they don't want to give the impression that you should overreact. they say an early move might even that we might not have to move so quickly or high in the long run. manus: what about four people who have not lived through an interest rate cycle? that is the cohead of european economics. still to come driving a runaway success.

european car of cells saw their biggest again in over five years. the stoxx auto center is also rising. more to come after the break. ♪

manus: did you buy a new car in the past month? you could've added to the fastest pace of european car sales in five years. let's break it down with one of our reporters.

what a great quarter. what was behind the jump? tom: a combination of new models, like the bulls wagon passat -- like the bolts wagon -- like the volkswagon passat, and employers buying cars for their employers. manus: thank you very much for that short sweet and to the point. good news all around. still to come, the s&p 500 left over 100% on the year so far. 10% after hours following earnings. we will talk netflix next. what big-name hedge fund managers have been saying.

join me on twitter if you can. i am there. i am @marcuscranny. francine is somewhere on vacation. if you spot her, tell me where she is. i am manus cranny. ♪

manus: welcome back to "the pulse." live from will break headquarters in london, i am manus cranny. protests on the streets of athens as greek parliament passed a bailout agreement to keep the country in the euro. or than 13,000 people gathered in the nation's capital. greek banks and markets remain closed. later today the ecb will hold a policy meeting in frankfurt. the liquidity situation in greek

banks is likely to stay. the central bank will deliver a rate decision followed by a press conference. that is 1:30 at london time. stocks rose for the first time during a volatile st -- volatile trading session. volatility is jumping in hundreds of markets. let's put perspective and these markets. the equity markets are rising. you would like to start the day on the dax? >> we are on a three-day winning streak. the longest since march. we are up another 1.5%. in italy, the 3100 in london, up another half of 1%. and the bond market, the shields are lower. yesterday, the spread collapsed,

getting very tight approaching the 100 basis point mark. in germany the yields are down 0.8%. it dipped below 2% on the spanish 10 year. we stay there at 2% flat. that is around 109 basis points. we are coming back from the nervousness about the potential for political contagions to spread into places like spain. in the equity market, we are higher. in the fx market it is euro weakness. the euro starling dropped below 70 pence. that is a 2000 seven low. it is rocky time in three hours. later in the day, it will be time for mark carney to speak.

what will he say about the rate policy for the bank of england. the dollar parents 901. it is mario draghi time later and janet yellen later. welded stop them from hiking rates. that is a question that might not be answered anytime soon. manus: in 25 minutes "surveillance" takes the air. tom keene, i very good day to you. it looks like all of the eyes are on the ecb. reprinted a great article on bloomberg.com. five questions for mario draghi, with 4 being on greece. tom: i'm fascinated to see what happens in the next 48 hours off of the ecb press conference at 8:30 new york time. and then what the german

government and the governments of smaller continental europe will do. we have without question a giant of economic -- of international economics. it is a really good time to have professor eichengreen. it will be a focus on ecb day. we will blather about the announcement. the brits conference will really be something. manus: i know you like pond markets. the bond markets have flipped. we have seen the risk premium of the greek collapse being taken out of the market. still, europe is wrangling over the bridge financing. tom: that is a key distinction. we heard that from jon ferro.

the greek yields have improved the tsipras vote. i was taken back about what was expressed in the german to hear. the bond market has shifted to an analysis of what europe will do it next 48 hours. manus: enjoy "surveillance." we'll be watching from the other side. i love netflix. it is the top performing stock on the s&p 500. it topped 10 percent after hours trading. let's go to our bloomberg reporter on this story. roderigo, the earnings beat expectations. roderigo: the main driver was international business. memberships grew 70%.

that is what is driving investors. and there -- and their confidence in the country. -- confidence in the company. people seem to be looking at the membership and revenues. manus: it is the international story. it is booming. the numbers are staggering in terms of what they have achieved in europe and beyond. roderigo: over the last year they started offering the service in germany and france. i have a lot of room to grow there. they're not a big presence. we expect them to offer this service in japan portugal italy, and china. manus: the whole concept is original series. this is where netflix has come into its own in individuality.

it owns the space of original content. when you look at those blockbuster names like "orange is the new black" and "house of cards" -- after meant that i am a fan of "house of cards." roderigo: they plan to change the game on original content. they are bringing a new way to do it. they will release 2 films this year, and there is more in line. they are working on non-american tv shows in mexico and colombia. original content is a huge thing for them, and they say that that is the game changer. manus: thank you. hello in madrid. they were up 10% after hours and up another 2% this morning.

we are at 110 stock trades. it is exclusive. it is the former sex pistols bass player glen matlock and konrad bergstrom.

manus: welcome back to "the

pulse." here are some of the top stories. european cars cells are up 15% in june, the fastest pace in 5.5 years. the sales increase is due to a strengthening eu economy and new models. the open championships begin in scotland in saint andrews. jordan spieth who won the masters in the u.s. open is the favorite to win. the defending champion, rory mcilroy, will sit this one out because of injury. nasa released the first close-up photos of pluto, which have been beamed 3 billion miles from the new verizon spacecraft. the images showed an 11,000 foot mountain range of ice over the

dwarf planet's surface. that shows ongoing geological activity on pluto. a little bit of breaking news. i will break away from those headlines. we have the bridge financing in place for greece. we have the figure. in principle there is an agreement. the bridge financing at several billion euros will be made available to greece. this is what has been debated. how europe would bridge the gap. they will add 7 billion euros of bridge financing for greece allowing them, who pass their austerity measures last night to pay the imf. they have to pay the ecb 3.5 billion euros on monday, they

haven't missed payment to the international monetary fund run june. they made their yen payment the other day. this is the bridge financing which the market had speculated would take time to put into place. we are awaiting the results from the ecb. we are awaiting the results from the european central bank where they will discuss if they will allow more liquidity to the greek banks. we understand that a variety of sources have said that to the european central leave the liquidity unchanged for the greek banks, and the greek central banks themselves are asking for a raise and liquidity of one point 5 billion euros. this is the first plank of getting greece through the near-term issues, which is meeting the debt payments to the european central bank. not making that would show a

default and all of the creditors would call in the debts. the euro was under pressure but is that more of a yemen than a yen weakness story? jon: i haven't had a chance to look but looking at the headlines you are looking at an agreement in principle. the bridge loan could be up to 7 billion euros, that is the amount of money they need to repay debts before they could get a stamp of approval for bigger bailout program. when the government gets the mandate, we are getting that headline, but the top headline is that euro areas are set to agree to a 7 billion euro bridge loan to greece. that needs to be implemented before we get a third bailout

package. it looks like it is agreed in principle, and we could get an announcement tomorrow. manus: let's go to hans nichols. we have been waiting all morning in regards to this. we want a guarantee for the u.k.. this is important. it is about needing to death for the european central bank and making the respective payments to the imf -- about meeting debt for the european central bank and making respective payments to the imf. hans: you get bridge financing to get you through. 7 billion was on the lower end of what greece needed. that will get you the ecb payment on july 20. your member the first initial 1.5 billion payment that they missed.

officials were privately and publicly it looks like the political will was therefore a bridge loan, but it needs to be finessed technically and legally. britain needs to be assured that they would not be held liable. they used profits from the ecb loan earlier to have those backstop any kind of lawsuit that you could have. that is an older bailout fund. i don't want to say bailout, and older fun from 2012 that britain had been cut off from providing additional financing. it looks like the lawyers have figured it out. it looks like we have rich financing, and an announcement could come as soon as tomorrow. manus: i just want to bring our viewers a few more -- the parliament approved the greek

bailout. there are a series of european parliaments which will vote. to the greek parliament voted and that was step one. we are in the process of setting up bailout number three. we have interim financing in place, which will satisfy some of the creditors' needs. it will be interesting to see how the germans have done that. that is breaking news. we have more to come. and it comes to smartphones, who will challenge the established market. for music lovers, i have 2 guests. we have konrad bergstrom the founder of zound industries, and we have the sex pistols bass player, glen matlock. ♪

manus: welcome back. this is "the pulse." live on bloomberg television and streaming on bloomberg.com. now the cofounder of zound industries. we are joined by the president and cofounder konrad bergstrom and the former sex pistols case

-- sex pistols based player, glen matlock. why would i buy this phone. is it just for music aficionados? what is the appeal? konrad: when we looked at the market, we saw that it was boring. we always try to reach people who love music. to complete the ecosystem, you need to build a phone. what we did was build a smart phone by default. we are trying to make the world's best musical experience. i think we actually got it. manus: glen, you have been in studios on the road and our music through and through. when you interact with something like this, what does it say to you? glen: the first thing i noticed,

you have to check the mixes on albums, and our days you want to sit at home and leave the mixing to the engineer. it is all on the monitor. the whole quality of the thing. they originally asked me if i would get involved in the event today, and i met to go a few weeks back. when they showed me the phone, i did not make the connection initially, but they have been making this there was a continuity. manus: you talked about completing -- we have imagery around the studio. we know what you do in speakers. i know your product. you are challenging everyone. i will challenge you and say there are lots of apps out there.

you will use technology that you have not used 20 years ago. glen: i like to keep pace with things. manus: times keep changing. are you just a convener of apps and are dressing it up in a new phone? konrad: no. when we build our products we are into the details. you have 7 features. you can put in 2 instruments into the sound jacks. and then you can record sound in a better way with flac files and compressed files. we have microphones that are as good as a 400 euro studio microphone. we put a lot of things into the details to make this the world's best musical smartphone. manus: i don't know if we should

ban the word disruptor on this show but disruptors within the tech space. who are you challenging? is it to help professional musicians like glen? is it to disrupt the musical industry? what are you challenging? we are for ourselves. there are a lot of different communities. a look at the musical communities close to us. this can be done in different ways. it is where headphones were 8 years ago. you could buy a headphone that was how you felt and who you wanted to be and what brand you wanted to represent instead of just a functional product. i think the technology is commodities. we had the chance to create phones for music lovers. manus: we wish you well. konrad: should i play it for

you? manus: give it a go. i'm running out of time. ♪ manus: are we picking that up? we got it. konrad: it is working. manus: we tie everything together. we wish you luck. thank you for your time. what is the new album called? glen: i'm not sure yet. manus: good luck. thank you for giving us your time. let's look at what we're watching for for the rest of the day. hans nichols is standing by. 7 billion euros is now in place. this changes the potential agenda for the european central bank in the press conference at 1:30 london time? hans: it changes the dynamic in

the council meeting. before it had been that unless you had certainty in bridge financing you are unlikely to get an increase in the eye away. there was a snapshot picture that they were not inclined to increase eoa. the final result could be influenced by this report. the bridge financing will not be likely official until tomorrow. that is after all of the parliaments vote. it is unclear if the idea of bridge financing will be determined inside the ecb. we know they're having their meeting, we will have a press conference. we do not care about rates just what they have to say on greece and what mr. draghi's

relationship is like with mr. wolfgang schaeuble. manus: thank you very much. we will take this all up tomorrow morning right here on "the pulse." the markets are up for seven days in a row. ♪

>> this is bloomberg "surveillance." tom: tsipras gets his vote. he may lose his job. brussels and berlin must find a bridge to austerity. schaeuble says do not build the bridge. will the ecb write the check?

there will be a draghi press conference. a conversation with stravidis. can we trust iran? live in new york. thursday, july 16. joining me, bonnie karen and -- vonnie quinn and brendan greeley. brendan: 7 billion is not 50 billion. i think there is jousting about power within the european union. now the eurogroup finance ministers are getting together and saying weight approve it. it's a power struggle weight will talk about. tom: we need to catch up on the top headlines on greece. vonnie: early this morning in athens, the greek