head of the open, futures markets doing this. dax futures never got an opening. no dax futures and no bund futures either. ahead of the open, come with me. they are really moving in tandem. two straight weeks of gains and a solid week of gains on the periphery. we are still around 1.96% firmly bloat 2%. we are in line with spanish debt at 1.96% and bund yields will go higher this morning. so the bond market and the equity market are moving in tandem. there's only been one currency pair that has made a lot of noise and it has been euro sterling trading near a 2007

low. firmly low 70% area a week oh euro has been the theme we are firmly bloat $1.10 now. the dollar strength is not just in the fx market at the bond market as well. in this morning the precious metals are collapsing. gold is falling out of bed tonight. this one is trading at a fresh five-year low. they're raising some of those losses but stay down by 1.3% to and then the fx market in the commodity market us is the carryover for the spillover. the ftse 100 up by a 10th of 1%. the cac 40 higher by one third of 1%. an eight-day winning streak adding over 8% over the period. we are heading so far for a

ninth day of gains. let's head over for the asian market wrap. >> i wish i could tell you a more exciting story across equity markets here. you can see we're just past 2:00 p.m.. it is a fairly mixed bag. that japan is closed today for marine day. you see that we are basically back to level since last thursday. do have some markets which are seeing a bit of spikes places like hong kong and some of these markets and southeast asia are seeing is the trade. that being said, the shanghai composite is just closing up shop in soweto see a lot of these prices over the next few minutes or so.

arguably now a normal market. i think it is the second time over the last five weeks that we've seen a less than 1% move. that being said you take a look at the chart about a fifth of this market is still shut. the entire chinese stock market and about 600 stocks are still beholden. twice we have flirted with it here early midmorning and towards the close they are a little bit lower than that right now at a 2% swing and another one backup. we will have reactions to the latest new bank loans which came out here in asia. we had property prices which are very encouraging picture.

when it comes to the fx market one thing that i will mention as well. the kiwi dollar. we're up to 66 u.s. cents. but when rbs comes up with their decision that seems to be a done deal. special cash rate down to 3%. jon: thank you very much. that is the situation in asia. greek banks opening on a limited asis after being shut for three weeks. this is angela merkel pounded out the prospect of limited debt relief but ruled out any haircut on greek debt to >> the classic haircut of 30 to 40% at forgiveness cannot happen in a currency union. it may happen outside but not within. jon: let's get more from the bloomberg team.

first to you tony, the significance of her comments are not really changing course. >> i would not say she is changing course and the really is no way that she can change course right now. there is a lot of resistance in germany and among her own party to go soft on greece or anything that looks like that but she did volunteer that there is this option out there once greece meets the first review of the proposed new bailout of using repayment terms. so if you like that is a small step or a small signal that there is this option out there. jon: a small signal from chancellor merkel. a small sign that things are getting better in athens but hardly. the banks every opened -- but

hardly. capital controls remain. he got rid of the daily limit that it has been replaced by a weaker limit that is the same. talk to me. >> here is something you may not have seen is that this is the headquarter branch of recent figures -- greece's biggest bank. before the banks opened two hours ago there was a queue of 40 to 50 people in the bank manager came out and give them all tickets and they went into a orderly fashion inside the bank. in that sense things are different but the difference tween taking out 60 euros per day or 400 turn -- 420 per week doesn't make a difference the people can take the full amount and one go. so capital controls are still in place but a little bit less tightly on those long-suffering

greeks. jon: the long-suffering greeks -- tell me about what is happening eternally with german politics right now. there has been a lot of discussion about the differences between angela merkel enter finance minister and there was some discussion about how long he would last in his position. have those reports been batted away? that was a question to you tony. >> merkel tried to shut down the debate about a relationship with wolfgang schaeuble her finance minister in this tv interview that she gave. it is clearly an issue that is out there and is not going to go away but you also have to remember that they got their act together the germans internally meeting merkel and schaeuble and also with 18 other euro area

countries to reach this deal a week ago. so for now this is in of a it's but it is not gone. jon: thank you very much for joining us this morning. that is the bloomberg team. we are joined by the head of the fixed income at blackrock. the big issue today is that the ecb will get its money. it looks like they are going to get the money and it looks like the whole bridge loan was set up just to get money. >> to some degree the current bridge loan is aimed at that day and the ecb. i think it is quite central that the ecb helps to finance the greek economy we've seen what happens if that financing is in question. so i would say from that perspective it is totally

natural that that line would receive all of the focus. jon: i remember in january and qe was unveiled and they said we can only unveil so much of the debt and greece was excluded for that reason. the question will be increasingly asked -- how long before the ecb start buying greek debt? >> it is hard to put the exact number of days but draghi has eluded to the theoretical possibility and it would belong to completely excluded once the debt has fallen under that threshold as they lent money to the portuguese government to have an investment grade rating so it is a question of internal trust in the credibility of a greek program and while i would

rule out that we could see such a thing for the end of the year. were point in time with a german government as discussed we can discuss a softer filing. jon: should they be buying greek debt? >> for the near term they should not but if the greek government indeed stays on course and merkel follows up on the pledge for a soft refiling in the debt profile begins to look better it would be politically unacceptable to exclude them so if that is the case i could see a point coming where that makes sense. jon: do you think you're going to find anyone who thinks it has any credibility at all. >> but they must is really slipping and sliding nowhere near the top around 15%. when you look at the bond market

on the periphery we have already had quite again. break out the periphery for me. when you look at the market what do you like and what don't you like? >> one of the big dilemmas was that the rest of europe could not see the more extreme position of the greek government to be seen as a winner. i would say the interesting consolation we have now is that it does not happen. almost half of the ruling conservative party. i think that has been prevented and it shows that the talk of something that would happen in greece would be a domino and was the wrong theory. so therefore i think the best

where we see economic growth where the account's ballots where political risk is there but much reduced and we find value. the 30 year dutch bonds trade edit different level than the 30 year german bonds. it's a country that has made deeper progress and has higher pmi's than germany jon: when you were to strip out that political risk story and you look at portugal and ireland, is at the cutting debt you are favoring? we like spanish debt that i would probably say that relative to italy we also like portugal for the reasons that you mentioned. but in between we saw spain becoming quite strong and in

portugal it was more question -- they've never been an aggressive newcomer in the risk is slightly lower and in ireland if you look at the economic growth you could almost make the case that ireland is on its way to lease the peripheral state but we will see. jon: i were to ask a final question on a liquidity section. that you could effectively by a country like italy because it would have liquidity over a country like portugal. are they a part of the consideration when you look at periphery? >> that is a big advantage of italy but if you trade those markets on a relative value basis it is even good sometimes you're sure did. the short leg is very liquid

soap the liquidity in italy is good for trading strategies from the direction you want to play the market. jon: we began by asking what it would take for the ecb to buy greek debt. what would it take for you? from our more conservative accounts i would not expect to fight greece anytime soon. for the more conservative retirement accounts we actually bought a little bit of greece when things were looking better. it depends on an account acis and that is hard to say. we need that and that is very price based because a week ago the headlines good but if you look at that rising terms we think pessimism has got to an extreme. jon: thank you very much for joining us this morning. coming up on the show, gold

takes a dive. we will take you to the biggest drop in the commodity and four months and china restricts lending as it gets the stock market under control and major cost cuts. barclays macy it's workforce shrank by 25% in the coming year. some of the biggest names in the industry and that conversation coming up in 15 minutes. ♪

jon: welcome back to bloomberg tv. it is about a quarter past the hour let's get you up to speed. greek tanks reopened today for the first time in three weeks with craft -- cash withdrawals limited to 420 euros per week. the nation faces a 4.2 trillion euro payment to the ecb today. barclays may reduce its workforce by about 25%. the bank may cut more than 30,000 jobs. in the first half profit jumps 28% to settle attacks dispute with united states. there the third largest wealth manager and gold heading for its biggest drop in 12 months. -- 40

months. platinum fell to a 2009 low this morning. silver and palladium fell by more than 2%. ryan chilcote joins us for more. when a term in the market called falling out of bed. ryan: what a day to watch gold. we saw that more than 4% drop at 2:00 in the morning london time. when you talk gold there are two things to focus on. we learn from china how much gold they have in their reserves. they have been eyeing gold but less than a lot of analysts expected. a lower gold price would be the case if you are just looking at gold at the reality is across the board we are seeing commodity prices down. and our own index of the dollar

against 10 peers last week went up by 1.5%. as you think about it, as the threat of a grexit declines the likelihood of a rate hike increases. that means you have lest demand for commodities. returning to that drop it to :00 in the morning. one investor said over the course of two minutes they saw five tens of gold being sold and over normal day you have 25 tons being sold. it was a big dramatic move prompted by a couple of trades. none the less gold was down to today as are all the commodities. jon: it hasn't come out of nowhere. i will bring up the losing streak for you with gold down for a sixth straight day. stay tuned on the move and we

will keep the conversation on commodities by talking oil with gary ross later in the program and up next, china tries to take control of the stock market. after the break. ♪

jon: good morning and welcome back to bloomberg tv. the ftse 100 up by about 0.25%

in the stock 600 on a nine day winning streak. in asia stocks in china are also higher with about 1/5 of total trading still suspended today. over the weekend china titled control of online financing. a 150% stocks surge. that's get to the beijing bureau chief, great to have you with us. for the people that don't know should probably answer how does online lending work and then get to what is changing. >> the way that it was supposed to work as you would have an online lending platform that would act as a conduit between people looking to lend the money and businesses looking to borrow money. what would happen over the last

several years is that the online lending platforms became lenders themselves so online lending went from $1 billion to $41 billion. this massive explosion has been turned around and gone back into the stock market. when you look at the stock market boom it was driven and large part by people using the money they got from the lenders to invest in the stock market. jon: the chinese property market, we saw the speculation shift away from the property market to what some would call the casinos. aside from the fact that it is picking up again, what is behind the turnaround in the last month? >> we have seen the government take several measures to spur the property market. one can imagine that it is a welcome sign for the government.

the property market is at the center of so much economic growth in china. the other thing that it seems to show was that the losses in the stock market have not lead over and they have been relatively contained. jon: thank you for joining us this morning. the beijing bureau chief here for bloomberg news. after the break we will see -- speak exclusively about the oil market to gary ross. 26 minutes into the trading session and this is a picture of the markets for you. the dax up by 0.1% in the stock 600 coming off of an eight-day winning streak. let's get to the euro sterling. we are firmly below 70 pence on the euro. we are back in two. ♪

jon: good morning and welcome back to bloomberg tv. i'm jonathan ferro in london. let's get you up to speed on where the equity market is trading right now. the ftse 100 is higher by 0.2%. the precious metals rout is good if you are on the ftse. rand gold, the biggest loser down by about 2% this morning. it trades at a 2010 low. the dax, about 0.1% higher. stoxx 600 coming off an eight-day winning streak. let's check out the fx market. euro-sterling getting beaten up

over the last week. one euro firmly below 7010, coming off a five-day losing streak. one euro buys me 1.851. gold, down about 1.66%. brent crude, we are going to talk about that in a little while. down 0.3%. there are the moves in the markets. let's bring you up to speed on the top stories at bloomberg. greek banks reopened today. cash withdrawals are limited to 420 euros a week. the athens stock exchange remains closed. the nation faces a 4.2 billion payment to the ecb today. angela merkel says a haircut is out of the question. >> a haircut cannot happen in a currency union. this may happen outside a currency union but not within a currency union.

jon: barclays may reduce its workforce by about a quarter in the coming year. the bank makes up more than 30,000 jobs. the chairman has vowed to tackle a cumbersome and bureaucratic company. job vacancies in london's financial services industry jumped by 56% in the month of june according to a recruitment firm. the city added about 30,000 new positions. the number of people looking for jobs also jumped by 26%. over in greece, just getting the headline that greece is set to give the order for 6.8 billion euros in payments to creditors. the bridge loan was given the go-ahead. greece can now repay the imf and meet the deadline to the ecb. greece is set to give the order for 6.8 billion euros in payments to creditors. i will keep you up-to-date through the morning. for now, let's talk about crude. brent holding losses after its

third week of declines. for more, i'm very pleased to say, here our executive chairman joins us in a bloomberg exclusive. great to have you here this morning. what a 12 months we've had for the oil market. bp, shell the big oil majors saying we need to embrace for lower for longer. is that what you think as well? >> i think prices are already very low. we are at the low end of the range. from here, we should see some improvement. i think the whole macro environment is impacting oil prices. gold getting clobbered. the amazing thing about the oil market is, capacity to speak of in the world today. that is the unbelievable thing. if you step back, you have isis attacking a navy frigate in the red sea with antitank missiles

that can go five miles. you have isis experimenting with chemical missiles in iraq and syria. isis is a clear and distinct danger to oil infrastructure and we have no spare capacity to speak of with the saudi's at 10 plus million barrels a day and we are sitting at $57 brent. i don't get it. jon: talk to me about the spare capacity story. there's a fair amount still left in saudi. historically, it looks tiny, but there is a fair amount. iran is another question. do we need to distinguish between spare capacity and serviceable spare capacity? gary: i think within 90 days, saudi arabia could ramp up maybe an extra million barrels a day of production capability. i think they would be reluctant to, but they could.

there's also surge capacity. the last time we had a market share experiment, it was back in the 1980's when we had 10 million barrels a day spare capacity. we've gone into this experiment with virtually little if any spare capacity. we have less with saudi exports down. down substantially from the march peak. all these stories about saudi arabia increasing production they may increase production for local needs, but the production is not that high to begin with. if they are exporting 6.9 and they run 2.4 million, and burn a million barrels a day their production is 10.2, 10.3. basically, there's not a lot of their if the market needed it. jon: let's talk about the supply side picture. one of the most emphatic aspects of the last 12 months has been a

distraction of the fundamentals. you see companies cutting capex. the addition to that story is the total production has state up here. u.s. crude production is staying up here. hardly rolling over at all. you saying the saudi's are pumping at an all-time high -- when are we going to start to see that distraction in the fundamentals for future supply feed into the production numbers? gary: there are long lead times in this business. u.s. shale has great momentum. production has already started to decline. we think the data is overstating production in places like texas. you will see more of that in the weeks ahead. production will start to edge lower. we are talking about production growth of 1.6 million barrels a day in the u.s. alone. it drops to 800 a day in the second quarter. the rate of growth is going to

slow. that is one bucket. it is a small bucket. you have the opec bucket, which is like 31 million. everyone is worried about iran. the other bucket is that 45 million barrels a day of non-opec non-shale. there's momentum from capex during $100 oil. these projects are still coming on. we see a 20% decline in drilling activity outside of north america and russia and china. it takes time to see the impact of the reduction in drilling to sort of begin to impact supply. and it is invisible. you don't have instantly available data. meanwhile, crude stocks are declining. the huge overhang that the ia and others anticipated, where did it go? it is not sitting on any ships.

onshore stocks are actually declining. this is not exactly a market which is terrifically oversupplied. is there excess inventory? there are excess inventories, but it is not a huge overhang. jon: in the last 12 months, the collapse we saw in crude, i would have a series of guests that would come on and say $80 is the line in the grass, and if crude drops under this line -- has that been one of the most underappreciated aspects of the decline? that u.s. shale could stomach $60? as you look at the oil market, what is the most underappreciated aspect of the oil market now. gary: your point is well taken. i've been around a long time. i started in 1970. the higher the oil price, the higher the cost. the lower the oil price, the lower the cost.

they go hand in hand. the fact that we are seeing lower cost is not shocking. we have seen dramatic productivity improvement. people going to explore the sweet spot. all this could lead to an incremental supply at relatively low prices. i think the underappreciated point is that huge bucket of 40 million to 45 million barrels a day. that bucket where you are seeing 20% decline in capex and a decline rate typically of 7% to 8% normally, it is that decline rate which i think is being underappreciated today. the second major thing is the political risk in supply. what i referred to early on when we started, isis' capabilities are growing every day. people are ignoring the fact that it is occurring in an environment where there iscapacity to speak of and

seasonal demand is going to be rising. the global economies -- i think we are going to see stronger growth than the 2.5% gdp growth we had in the first half of 2015. i think we are going to see stronger growth in the u.s. and europe and japan. jon: when i wrap up the last eight minutes, it is pretty clear to me that you are bullish oil. if i came to you as a client and said, tell me what the trade is, what is the trade? if i look at wti and brent trading in the 50's and you color in a whole host of dynamics to tell me crude is going higher, how much higher and how quickly? gary: the financial length in the market is very low. it is probably down to 380 million barrels. everyone thought we were going to run out of storage capacity. all the investment banks said we were going to 20. we went to 60.

now, they are rolling out the same story, that we are going to 30. it ain't going to happen. i just think people underestimate the fact that the fundamentals will directly tighten and the prices are going to move higher. i think the trade is generally being long oil. price forecasting is not about what is in the market today. price forecasting is what is going to be worldwide 30, 60, 90 days. people worry about product overhang. the underappreciated factor that i mentioned earlier about that 40 million to 45 million barrels a day of non-opec non-shale that is slowly eroding. and the geopolitical risk. don't forget that. jon: i won't forget that. my colleague at bloomberg news also pointed out that people come to you and your group to

talk about a whole host of things, but particularly about the strategy of saudi arabia. going forward, how important is that man to the strategy of saudi arabia when he is pushing a certain age and we are going to come to a point where he's not going to be the minister of oil anymore? what is going to happen from that point? gary: he is in great shape. you should walk with him and see how fast he walks. he is in great shape. but he is approaching old age and i'm sure he wants to retire. it is not the minister that makes policy. it is the saudi government that makes policy. i don't think the policy will change. they keep their eye on the ball. they are driven by economics not politics. they learned in the 70's that the political use of oil doesn't work. they are driven totally by economics. they saw the writing on the wall

that they didn't want their volume lost. they didn't want to go back in production. they foresaw that by letting prices go. sure enough, their production is strong and overtime will get potentially even stronger. i think saudi policy is not really going to change. i think they are looking to expand the market for opec oil and they are going to do it. we saw that back in 1985 to 1990. opec oil grew 7 million barrels a day in five years. if it grows 7 million barrels now, there's not going to be enough oil to satisfy. jon: iran, will the saudi's make space for iran considering where opec production target is? gary: they have to make space for iran. i think the market will make space. the market is growing 1.5 million to 2 million barrels a day year on year.

their capacity was 3.7, 3.8 five years ago. if you look at their drilling statistics, drilling statistics have come down quite a bit. we think their capacity has probably dropped to 3.5 million barrels a day. they can get 300 to 500 a day in six months time. jon: too much made of that as far as you are concerned? gary: two thirds of it is this high, very terrible stuff, which is the condensate. they have this condensate which is very corrosive, and smells like rotten eggs. they have to sell at a dramatic discount and people don't want it. most of their floating storage is condensate. i'm not worried about that. when they start up, you may get some flush in production from the reservoirs sitting idle

because basically oil is lighter than water, so oil will rise to the surface and you will get a little flush but then you will see the production come off. if we are growing one million to 2 million barrels a day, the market is not going to have much of a problem. jonathan, we were mega bearish. we started last summer and we rolled this thing down. we continue to be mega bearish this year. i think these prices, there's no point. at $50 $57, the market will work. jon: gary ross, thank you very much for joining us this morning. just to recap, about 12 minutes ago, some breaking news from greece. the greek government is said to have given the order for a 6.8 billion euro payment to creditors.

that covers the ecb redemption today and the imf as well. coming up on bloomberg tv, barclays may reduce its workforce by about a quarter in the coming years. we will discuss what is next after the break. ♪

jon: good morning and welcome back to bloomberg tv. it is time to talk about barclays.

it may reduce its workforce by about a quarter in coming years. the bank may cut more than 30,000 jobs. julia joins us now for a little more. why is barclays doing this now? i guess the other question would be, is this why they got rid of antony jenkins, because they wanted to be more aggressive on the cost-cutting side of things? julia: i think it is clearly coming from that. we have a new chairman who's come in and he's able to sort of push these cuts through. so yes, i think a lot of this is happening now because we've seen the new chairman come in, we've seen jenkins out, and it is a question of how do we cut cost further and increase revenue. you get somebody new in and it makes it easier to do this. jon: this may be someone else's job to execute on. when you look at the story this morning, reports saying barclays

themselves have concerns that this is the plan, but do you think this plan is macfarland's ambition to improve shareholder return? do you think this will be enough for investors? julia: i think it is a tricky call. the first key here about where the cuts take lace, it is not clear. we think it is mostly retail not the investment bank where there has been a lot of trimming already. where is the revenue going to come from? do you grow the ib more? it is a tricky question to answer. you have to get the revenue up. you also have to trim a lot of extra fat which might have been coming from the retail jobs that were in the back office and can be handled i computers. jon: julie ever lane, thank you for joining us. barclays stock just in the green

this morning. on a nine-day winning streak. investors clearly optimistic about the plans going forward. after the break, it is a big week for data and earnings. everything you need to know for the week ahead. we will do that after the break. ♪

jon: good morning and welcome back to bloomberg tv. just a quick look at what is up ahead.

some big earnings are coming out. tuesday is apple, yahoo!, and microsoft. thursday is amazon. friday is pmi day across europe. amazon and mcdonald's on thursday. pmi day across europe on friday. that is almost it for the first hour of trading in europe and that is almost it for me. after the break will be "the pulse." we are joined now by the anchor manus cranny. manus: a couple of themes. one is, what is going on in china? some people are comparing it to everything the fed did back in 2008 when you had a subprime crisis in the united states and the fed plowed nearly $700 billion to support that. here we are with china, and i asked what do i use to convert yuan into dollars. it is approximately $400 billion

in support for the equity markets. that gives you a concept of the scale. we've got russell black coming in from foreign partners to talk about the property market in china. you and i chatted about the bond market this morning. jon: we did. quite a run. manus: it had a heck of a run. the question is how much is priced into the market. alex is going to come in and discuss that. along with that, i think the u.s. bond market is perhaps the most fascinating. there, you have a market which is turning. beginning to prepare it self in terms of its net positioning. is that trickle or is that going to turn into something? 71% say the fed will go in december. 30% say september or thereabouts. is that market prepared for a

fairly substantial impact? i need to be careful with how i put it. jon: blackrock telling me this morning that they bought greek debt. if you want to be aggressive, as far as they are concerned, small part of their portfolio, but they saw an opportunity to be aggressive. julia: -- manus: you have to be brave. you have to have a mandate to take that level of bonds and you have to have -- you just have to assume that at some juncture, that might not be worth what it was that you paid for it. spent far too much time with those people. jon: manus cranny, i will cut him off there. he will join you in just a couple minutes time. that is it from me. equity markets pushing higher. the stoxx 600 on an eight-day winning streak. will we make it nine?

you want to talk about the markets, i'm on twitter. best of luck for the rest of your week. ♪ .

manus: greece pays up. the government is sad to give in order for repayment to the ecb, imf, and bank of greece. banks reopen after being shut for 2 weeks. many restrictions in place. losing its shine. gold at a five-year low. manus: welcome to "the pulse