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."

i am manus cranny. a big day for greece. and the last hour, the government repaid 5.8 billion euros of ecb, imf, and bank of greece. angela merkel said she is prepared to talk about debt relief but ruled out any haircuts. chancellor merkel: greece is in relief, private creditors allowed in debt cuts with lower interest rates. we can consider as they are part of the mandate was the program has been review successfully, we will discuss that very question. manus: the banks have reopen today after being shut for 2 weeks. let's put in context with our reporters. elliott got been and paul -- elliott goggin and paul gordon. the banks open, a little bit of a rush. what is the feeling of the

street? reporter: you will see another lazy day in agrees. security guards having a little chat among themselves now looking particularly concerned anybody will vent their fury after not being given for access to their money. a real difference. now you can take out 420 euros for the whole week. over the course of the week, it is the same. the difference is you can take it all out in one go and go inside the bank and deposit checks. you can access your saved deposit boxes. there are capital controls in place. people cannot get access to all of their money or transfer money overseas, for example. many restaurants and other places are demanding cash only as was the case in the one i had

dinner at last night area the restrictions are a little bit less strict than they were before this morning. manus: i have to say the -- is very typical tv. we are showing pictures. what are the queues outside one of the national banks? it is trying in some way to get some kind of normality back into the system that ground to a halt. paul, i want to turn our attention to you. one of the biggest creditors is the ecb and they are said to receive 4 billion euros, 3 billion in principle. what the next then? the big issue jumped over this morning. pual -- paul: a little bit of rise. no doubt it will get there and the ecb and imf gets paid. the bank of greece gets paid and

that was quite critical. not paying them, the greek government risks sending the central banks into monetary financing territory which would have been illegal. we have seemed to get past tah -- that point. mario draghi said last week and is not controversial is a greece needs the money. not according to angela merkel this morning. and schaeuble and the finnish prime minister and not a nominal cuts in the base value of that debt. it will be a few discussions in the coming weeks about exactly what should happen given angela merkel's comments on sunday she wants to see greece go through the first round. it might not be the coming weeks but coming months the for with

good decision. manus: paul, thank you. what ever merkel has to say in regards to debt relief it has opened pandora's box in many ways to what happens the next area elliott, thank you for being on the ground in athens. paul, we would check out you later. later on, we will speak with the greek minister. also from athens, the chairman of quest holdings. theodore will join us. and a little bit more on how we should put all of this in perspective, chief european economist. great to have you with me. here we go. the imf. the ecb. what does it mean for the ecb in terms of liquidity for greek banks? guest: ecb president mario

draghi said acting on the assumption greece will remain part of the eurozone and that means over the next couple of weeks as we see the negotiations continue the ecb will gradually increase the limits for ela in order to give the banks more breathing space. it does not mean the limitations on the banking sector would be lifted immediately. we see many restrictions remain. they would have to say in place. more room for recovery. manus: we saw the quantum outflow of funds in the past six months. the big money is gone and mario draghi said it is literally less. the ecb will keep an eye on the level exiting the system and that will be crucially important. reinhard cluse: absolutely. mr. mario draghi said at the ecb

facing an interesting balancing act. it wants to make more room for the greek banks to provide liquidity. on of the other hand, you do not want to open the banking system in one big rush enhanced trigger another deposit run. manus: probably at all costs. the other knows i found fascinating by repaying central banks today it changes the complexion and opens the debate about when or if greece could be included within qualitative easing. i find this fascinating. run me through. reinhard cluse: first of all, the greek government would now have to come 20 agreement with international creditors on at the third bailout. once the first disbursement of the money has been done, we assume that might be sometime in the fall and implementation is deemed credible, the ecb could

include the greek government bonds in is qe program again. they could do that for perhaps two months until the first program review starts. then of according to the ecb rules on qe the inclusion would have to stop again until it is concluded. manus: it is some of the finer nuances the exposure ecb has to greek bonds and level of 33% of the bond market issues for youthey come -- issues. -- they come back today. reinhard cluse: they do. they must hold more than 1/3 and today we will drop below 33% a greece could nominally be included. but, given the negotiations on the new program are still ongoing, we need to wait the conclusion.

manus: for so hollande -- francois hollande announced on sunday. what threatens us is not too much europe but a lack of it. [laughter] manus: that sounds like a quantitative step. does he have a point? reinhard cluse: a matter of political discussion. he might indeed. if you read the statement given by the president and central-bank commissioner is so forth i think the next steps are work on the capital markets and perhaps fiscal and this will be significant in quantum steps and european government is something for the future. manus: just too much to be done. two governments. angela merkel, when the first successful a similar smit of the program if -- assessment of the program is associated apropos

at some form of extension in terms of relief for greece. that is a bit of progressive step from merkel? reinhard cluse: not necessarily and the german government was aware debt relief would have to happen and they said not in the form of haircuts but extensions of maturities and lower interest rates. it has to happen and as the price germans had to pay for keeping the imf in the boat. manus: reinhard cluse you will stay with me. reinhard cluse from ubs. what else is on our radar? barclays about 25% in shanghai in the coming years. cell carries on program -- at the bank will carroll programs to cut costs. the efforts code leave it with a less job. -- it is the bank trying to control programs and cut costs.

first-half profits and dropped the move after the bank took a provision to settle a tax dispute whether the united states. bloomberg spoke to the ceo earlier today. >> i think as we said we are pleased of the results and we are in advanced state of cooperation with the department of justice so we are confident and committed we should be able to reach a final set by the end of the year. manus: stocks in china close up after a volatile day of trading. the shanghai composite index fell to the 4000.11 while 1/5 of the market is frozen. the titans control. online landing was part of the fuel behind the nation's stock search and the year before -- surge in the year before.

coming up -- is gold losing its shine? why the metal is heading for a next drop? one of our top stories. plus -- football in asia. why the region is vital to the club's future. later, expansion in europe. we sit down with the ceo. stay tuned for that. ♪

manus: welcome back to "the pulse.” live on bloomberg television and your phone and tablet. a quick look at where the gold market is. a five-year low. futures down 1.6% rate we bounced off of the lows. and 1113. that is the gold market. a short, sweet twitter question of the day. there we go. gold is in a five-year low, high or sell -- buy or sell? do not send an answer about it is when the fed decides on the interest rate. we have reinhard cluse.

thank you for sticking with me. you are relatively upbeat on europe and even moving past. with that that in mind, the euro is moving lower. reinhard cluse: i think now with the greek drama somewhat behind for down, i think the chances for continuation of the european recovery is there. we have policies in very low inflation and oil prices which help the consumer and moderation of fiscal austerity and healing of the banks lending channels. all of that will support the recovery in the eurozone. manus: a lot of people talk about the rebalancing between the north and the south in terms of the nordics and germany relative to the periphery. from the feedback you get from periphery, are those structural changes wearing through and the likes of portugal and spain?

and will see in ireland. give us evidence to help with that story. reinhard cluse: it is clear evidence. in spain, we have growth picking up substantially and the labor market is recovering. all of this gives new confidence to the household sectors where people consume again. 2%, 3% growth is something very realistic and the government is expecting more. we see in portugal, for example, the government has done a good job despite difficult political conditions. we also see signs of credible science of italy progressing. we also have a more realistic outlook of the economic recovery will get a boost from structural recovery going forward. manus: any concerns at all from the fed and the u.k. in theory to pull the trigger to get us

from zero buying rates? would that have a temporary impact or less bothered by it? reinhard cluse: we all have to be aware we come from extremely low interest rates and the fed now we believe in september moves toward normalization with a first rate hike. it would not be perfectly smooth process. that is likely to lead to a list in a bond yields in the u.s. and suck up the bond curve so in europe, it would apply to tightening conditions to a certain degree evening europe. not perfectly welcome perhaps from the european perspective but a reflection of the fact that others the u.k. a u.s. are further advanced so u.k. have to live with it. manus: when you look at the currency, euro-dollar and moves,

currency. the dollar is marching higher. the dollar is really up in a big way. a big, of turned away. how much euro currency weakness? how much do we need to focus on to validate? reinhard cluse: if you recall that in may last year euro-dollar was at 140 and we are significantly lower. we have seen a strengthening of the euro and we for now the interest rate hikes by the fed which we expect as of september will continue to strengthen the dollar against the euro. but over time as the european recovery proceeds, i think and greater signs europe is through the worst -- and pave the way for the euro to, back. manus: let's see how it works out. one step forward for greece and two steps forward for europe.

reinhard cluse. coming up, barclays is looking to cut costs and that will mean jobs. what are the details of the story? joining me next is our reporter on that. ♪

manus: welcome back to "the pulse."

streaming on your tablet and phone and bloomberg.com. barclays is cutting costs and can see its workforce shrank by a quarter as they try to tackle -- shrink by a quarter as they tried to tackle costs. richard, should i be more concerned there's little be a lot more job cuts, and then we talked about before? 130,000 employees as it stands for the moment. richard: 130 employees likely to be more cuts. the story is really an acceleration of the previous plans put in place by the former chief executive last year and he will cut 19000 and -- 90,000 employees over three years as they are working on the land. with the new executive chairman, those cost cuts are looking to

accelerate those faster. that will include more job cuts to come. no firm plans at present, i have been told by sources. you would not imagine there would be one within a couple of weeks of that new eeo coming in -- chairman coming in. there is exasperation to cut more jobs. manus: that is why mcfarlane is here, his style so to speak. his moniker from years ago. there is this debate to be had between the retail business and investment banking business. win or what kind of information gathering is going on? when will we know more about the strategy, 100 days? richard partington: absolutely, analyze what they can do. that is the key message today. they cannot do it overnight

they have all plan in place. the investment bank was seen as under an antony jenkins per house. the future, they are filling rosier. -- and anthony jenkins perhaps. it is not clear given they want to make further cuts. some analysts saying, price reductions and the bulk mostly for retail and back office area a lot of staff and the consumer banking operation as more people will banking online and mobile, they do not need as many people. manus: bill winters looks like he will accelerate over as standard johnson. richard partington: he will indeed and they are working on the program and they will report possibly in october. they have not given us a firm date. real winters' new team will be fully -- bill winters, new team

will be in place. a man who was been with the banks of the 1990's, an old guard. he was a former right-hand demand and does not have products reported directly to him. they go to bill winters. moving aside a little bit for my greece. the management team. -- moving aside a little bit for mike reese. manus: thank you. keep up the good work. coming up -- china's heightens online landing as it tries to take control on its stock markets. -- lending as it tries to take control of its stock markets. we will talk about greece's strategy of keeping one of the most important industries alive. will you book of flights a

greece, will you go to the islands and support this country in its time of need? that is live from athens a little bit later. ♪

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manus: welcome back to "the pulse." i am manus cranny. up to speed with top headlines. greek banks reopened for the first time in two weeks. withdraws are limited to 420 euros a week. the ad is stock exchange remains -- the athens stock exchange remains closed. and the country will pay the bank of england, imf, ecb.

at angela merkel spoke to a german broadcaster, she said she is prepare to discuss the matter once greece fulfills the first round of the bail out. she ruled. any haircuts. -- ruled out any haircuts. china up today. the shanghai composite recovered to the 4000 mark level well 1/5 of the market is frozen. online landing was -- lending was part of the 150% stock surge. for now, out to beijing and our bureau chief. he joins me. from what i see with china at the moment looking to impose stricter controls in financing and rushing with almost as much the fed did.

the controls first, i'll line financing, is it really the culprit? -- all line, is it really the culprit? guest: it was part of the boosting and fervor you saw over the last year or so. i'll lie lending exploded -- online landing explosive -- online lending exploded. the lenders that was supposed to be intermediaries between people with money and countries -- companies with money but came a key part and clamped down on that avenue to cut down on the margin financing that had led to the boom. manus: run me through where we are. it looks like it may be speeding up again. we had slowdown and prices -- in

prices which is how we try to run the metrics with pricing. is a part of the turnaround? nick wadhams: it was like the property sector is rebounding a little bit. the biggest thing to focus on is prices for june seemed to have been largely unaffected by the stock market collapse. the market hit with a high on june 12 and tumbled, property prices for june were stable and up a little bit from the month before. what it seems to suggest is some report people were dumping homes to cover their marginal losses and the stock market and those were not a widespread and the property market which is such a key driver for the economy, it is doing all right and has not been too badly affected. manus: thank you very much. bloomberg's nick wadhams in beijing. for more of the rebound in china's property market and

argue why now is a time to invest. our next guest russell. he manages $5 billion in real estate around the world and over 10% in china. thank you for coming in. we heard from our bureau chief that perhaps we have seen the bottom of the chinese market would you agree? guest: what we saw in 2012 was access. we saw a raft of measures intended to cool off rising prices especially in tier one cities and have multiple effects area demand fell and inventories of begin to fall if you look nationwide now inventories have fallen from 18 months to 12 months. in tier one cities, beijing and shanghai, they fall to eight months. supply and demand are in much better balance. in consequence, house prices

rise by about 4.5%, 5% nationwide and larger -- and more in the larger cities. it is not robust but showing balance. manus: is pricing getting more sensible? the fall levels are incredibly important. systemic issues. supplies beginning to rebound again as you said. the language you use the just things are getting -- you suggested are getting better. i know you have to differentiate. russell platt: if you look at income levels, they look extended. a lot of household wealth. this they cash market as opposed to the u.s. which is driven by financing. if you look at affordability outside of the major markets it is quite good incomes rise at a faster rate than home prices.

manus: first of all, why now? why pull the trigger? looking at china, investors were not burnt i the china+++ why when i look at the chinese market, property market now? and where should i be looking? russell platt: the bad news is in the price. we know about the growth of not being balance and china may grow old before it grows reach. and a recent action is beyond the capability of the government perhaps to control down to the minute details. that being said, chinese cities need to accommodate 230 million people over the next 15 years. that means a lot of new houses. we like the bad news is in the price and the government is making get more difficult for developers to finance print overseas investors like ourselves can put money into chinese markets and develop in

the larger cities and get rewarded quite handsomely. manus: what kind of yields are you talking about? russell platt: anywhere from 50% to 20% -- 15% to 20%. manus: obviously, inherent risk in that. when you talk about your relationship, a bilateral relations with the chinese. you are the men helping to abide the properties right around the corner from me. russell platt: i've been doing this chinese business for over a decade pretty in the early days it was how to get money from pension funds and endowments from the west into china to earn 15% 20% yields. now, how do we conduct a two-way flow. it started with chinese investors trying to buy a home and maybe get a visa to live in australia or canada or u.s. and

now about corporate developers moving strategically into markets light london where we see so much development in the south bank. places like california. and increasingly, institutional investors. wilfork about people buying the lloyd's building and london. and the waldorf-astoria. a whole wave of smaller banks and insurance companies and pension funds coming in. manus: is it a new competition? not just qatar but sovereign wealth and the chinese? is there a bidding? is it heating up? russell platt: a certain demand for trophy access and the desire of capital and people from china to other parts of the world. projects now financed a by the chinese and sold fully to chinese residents moving abroad.

a remarkable phenomenon. it really differentiates out of japan and 1990's where there was a lot of flow capital but not the same of people as institutional players. manus: before i let you go where is your other big core for property? russell platt: the u.s. remains the favorite for our client capital around the world. the most robust growth and we are seeing increased rents a very stable occupancy. it is a difficult market for many to access. he is keeping us business. manus: russell, thank you. russell platt. coming up -- football clubs trying to score in asia. why the region is vital to the club's future and that is next. ♪

manus: welcome back to "the pulse." more far top headlines. workers have been kidnapped in libya. the attain for ministry officials said they happened in their compound owned by in oil producer. price of gold hit the lowest

level in more than five years after investors weighed the aspect of higher u.s. interest rates. china said it is holding less metal in reserve as some analysts expected. platinum plunged to the lowest level in 2009 the palladium dropped 2% of value. london services fail in a june. versus the drop in may. -- london services fell in june. added new positions. for a of people looking for jobs increased 26%. football's top teams have been in singapore the past few days for the asian trophy. that is why -- bloomberg sat down with arsenal ceo and asked how important asia is to the club. ivan gazidis: for us to reach

out and connect with a enormous fan base is a priority. a priority for our growth as a club. if we ignored that, we would be fully. we need copied at the top level. in order to do that, we have to encourage and grow. -- we need to continue at the top level. haslinda: to feed the frenzy greater pressure. more of asia. ivan gazidis: we have limited resources but cause of the way the football schedule words, tighter and tighter. it shorter and shorter. for us to find the windows in which to visit all of the locations we would love to visit is a real challenge. haslinda: it is an expensive business. you need deep pockets to sustain a successful football club.

do you see any new income streams coming your way? ivan gazidis: we have always been a club that looks forward and looks ahead when we developed our new stadium. we react to the top of our gay when we started that project which we knew would we -- which would be difficult. we are looking at what we need to go. -- we were at the top of our game when we started that project and we knew it would be difficult. it is challenging for us. as a football club our revenues are rather meager. around 300 million pounds, four injured million pounds. in real terms most of that money is used on our players, our squad and football side. the resources we have to really connect down here it is impossible in a region that site to be able to do that on our

own. -- that size to build to do that on our own. other partitions to develop with emirates. we did a launch here in singapore the other day. these types of ways of connecting with a fan base which is mutually beneficial is the way forward for us. manus: up next -- we hear from the nation's tourism minister about what they are doing to key one of the most important industries alive. -- keep one of the most important industries alive. ♪

manus: welcome back to "the pulse." here is some of bloomberg's top headlines. greek banks reopened for the first time in three weeks. cash withdrawal limits are limited to four to 20 euros a week. the nation is said to give an order for 6.8 billion euros in payment to the ecb, imf, and bank of greece. angela merkel entered into debt relief speaking to a german broadcaster and she's said she is prepared to discuss the matter was greece successfully completes the first round of the new bail out. she ruled out any haircuts. stop in china close up after a volatile day of trading.

the shanghai recover to the 4000 mark level. 1/5 of the market frozen. online financing was frozen. online landing was part of the stock surge in the year before. straight back to advance. elliott dokken standing by with -- elliott dokken standing -- elliott gotkine standing by with a guest. elliott: tourism almost 1/5 of gdp. i am joined by the tourism minister, elena kountoura. how damaging have capital controls been on tourism? elena kountoura: not the best thing that happened to us. very, very difficult but cause in the ministry we had to work like 24 hours a day to provide

to make sure that they will have all of the high quality that greece offers. vacations are very privileged. it is something that is very important for us. elliott: and and not have access to cash. elena kountoura: exactly. so first thing we did was to have access to cash and debit to work for withdrawals and anything they need it. it was the first thing we did. the second thing we did was to make sure that all of the bills that would be able to pay so we are not going to have any problems of food supplies or fuel supplies. elliott: you made exemptions. elena kountoura: exactly, we made exemptions. and a little, small things.

we took care of it. elliott: the capital controls relax a little bit and the banks are at least open. do you think it will get people the impression that things, less things to worry about? elena kountoura: nothing to worry about for them the past two weeks. elliott: people are saying is is safe to come. will i have to get my cash out? there were people who were worried. the banks, will it help encourage more? elena kountoura: the first thing we did to make sure all the people came to greece not to worry is to tell all the media and newspapers or even tv that here, it is normal. everything is quiet area this was the thing we did definitely.

everybody was stressed out and do not know what was going on and they have been asking. we did support and mentor -- which is electronics information for every body that needs to know and learn what is going on. only the greeks, they had to suffer these past few weeks. the opening of the banks from today and be able to have 420 euros a week. elliott: we still have capital controls. and today, sales tax going on rest restaurants, processed food, public transport. is that going to put some people offer from coming to greece? elena kountoura: no, it is a bad deal. i do not like it because our partners with europe asked from us to be able to be competitive.

but at the same time, as they have been asking no competitive and measures break it is not logical. elliott: on the islands the government resisted very fiercely, it will go up on the greek islands. elena kountoura: only for the hotels. from six that is now. we go from that to 13. it is not that competitive but it is ok. the other countries, our competition is between eight and 11. not a big deal. but it is a problem. in order not to be -- what i want to say is i do not want to freak out tourists. all of the business, we take this. it is not easy. elliott: measures to be voted on in parliament on wednesday.

increase taxes on the farmers and other measures as well related to early retirement. you as a minister, would you vote on that? elena kountoura: i think alexis tsipras is the leader that unites all of the greeks and political parties which is very important. the second thing he did, very hard negotiations. this agreement is bad agreement. but it is very important. the first thing is we should [indiscernible] for three years. restructuring that there -- the debt. and 35 billion euros what did the other deal do not have.

elliott: not going to restructure just as yet. they may negotiate. elena kountoura: they will negotiate. elliott: we should be clear. elena kountoura: and the last deal did not -- when it is a gun at your head, you have to decide to save your country or not. elliott: thank you for joining us. we are going to a break. thank you. greece is open for tourism. elena kountoura: we are open. thank you for your support and commented greece. -- and coming to greece. elliott: i will hand it back to you. thank you. manus: we like a lively robust debate. that is the first hour of "the pulse" and we are back very

shortly. first word up for our radio listeners. we will talk about furniture. the ceo of -- stay with the puls e. ♪

manus: greece gives in order for 6.8 billion euros as repayment to the ecb, imf, and a bank of greece. banks are open after being shut for three weeks. of greek lenders opened their doors. there are many restrictions in place. goal at a five-year low as investors fall out of favor with the metal.

good morning to our viewers in europe. good evening in asia and a warm welcome to you if you are just waking up in the united states. i am manus cranny and this is "the pulse." we are live from london. in the last hour, the repaid -- government repaid money to the ecb, the imf, and the bank of greece. anglo signaled that she is prepared to talk about debt relief, but ruled out the haircut. >> greece has been a granted relief. they got debt that's an extended credit terms with lower interest rates. we can consider it again as they are part of the mandate. once the program has been reviewed, we will discuss the very question the. manus: the banks of reopened today after being shot for three weeks. let's put this in context. our team is standing by your

elliott, let's kick it off with you. you just spoke with the minister of tourism and she was trying to make the point that this is about normalizing things for people and tourists of greece. what is it like with the banks open again? what did you see this morning? elliott: manus, the banks have reopened, but not completely. the door is only a slightly ajar. as far as ordinary greeks are concerned, they are restricted to taking out 60 euros per day. 60 euros per day is the same difference. you can get it out at once or access safety deposit boxes. we saw a queue of mainly older people, 40 or 50 at the national bank of greece early this morning. the bank manager came out and was giving tickets to people.

it was operating normally. capital controls remain in place here and people can't transfer money overseas. there are many places that will say they are only taking cash and no debit or credit cards. on the surface, things look more normal. underneath, things are still anything but. manus: let's switch to paul. this was the big issue, wasn't it? you pay the ecb to avoid what really would have done a default. paul: yes. you could not get away with it. unlike a missed payment to the imf, you miss a payment to the ecb and you can't do that under law. the banks lose funding and collapse. that appears to be it. we understand from greece that

the order has been given for the ecb to be repaid along with the imf and the greek central bank. the ecb has declined to comment. there are mechanical procedures that have to be jumped through. if i were to pay by check, you would not be getting the money in a day. that may not be the case in the ecb either. the potential crisis is now averted. manus: have you heard? let's talk about this next debate. merkel, no haircut expressly. if greece makes some of their metrics in the renegotiation she could discuss some form of extension a? paul: yes. i do know if the tone will go down all that well in greece.

the debt relief was flagged last week i marry a draghi and christine lagarde. merkel is acknowledging that debt relief will be needed. the question is what form. no haircut no cut in the face value of greek debt. reduction in interest rates those are things that could be discussed in coming weeks or months. the imf says greek debt burden is headed to 200%. most are managing that. greases showing no chance of getting there without some kind of aid. manus: absolutely. those numbers are relevant. it puts the whole thing so much more perfectly in context. numbers do tell the story sometimes. thank you very much. let's ring -- bring in alex.

it's always good to have you in the studio. things are progressing. every time we get together, it looks like the nerves are less afraid. alex: there is some kind of solution for now. the bark it's can get back to worrying about something else. manus: this is an important point. the ecb and imf needs to be paid to avoid a default. that opens up something progressive in terms of why the ecb might look forward to liquidity for the big banks. alex: if there had been a default, they would be keeping the banks afloat for the time being. this deadline has been a very important one. it keeps the banks opens and recapitalize his them. manus: we had the chief

economist in here and we were talking about the consequences for greek government bonds when they might be alive to be bought by the ecb. that's a real prospect. alex: absolutely. manus: d you have clients pricing up greek bonds? alex no. we have seen a rally already. if the conditions are met there's no reason why the ecb can't buy bonds. it's going to take a while. manus: talk to me about spain. progressive steps for europe and for greece, that has fed into a rally, a nine day rally. my question to you is is this progress already priced into those markets? alex: i think people have been

cautious about buying peripheral debt. there is the question of the fact that it was put on the table as part of the negotiating tactic you may need a bit of a premium for that. it has been averted for now. manus: i am looking at spain and italy. spain is trading at 1.9. italy is trading at 1.9%. i am quibbling. they have come in dramatically. is there more to run on that? are people going to ask for spain over germany? alex: people were wondering if it was going to be bonds to buy. they were doing qe. they were going to keep going until september of next year. there were questions about whether they would have to do

more. there were system --'s to stomach read -- systemic problems for greece. you don't need the premium. on the other hand, they might be more forecast to buy more. it depends on what happens to growth in europe. manus: you expected to be reasonably constructive question mark its growth but with no deflation. that's the base case. alex: it had been priced into the bond market there was a selloff this year. the next question is when we going to see inflation and the point where the ecb is going to have to start removing a stimulus. i think that is a long way down the road. manus: this runs through the end , no sign of deflation. last week, i looked through the bonds.

the bond supply was 36 billion euros. that was the highest in 2015. alex: i think there were 100 billion in redemptions. we actually had net supplies positive. this month's negative. that's one of the reasons for economics looking better. manus: stay with me. there is a lot more to talk about. here's look at what else is on this monday morning. the bank is carried out resisting programs. the banks efforts could lead it to fewer than 100,000 people. the swiss wealth manager had profits drop.

there was a subtle of a tax dispute with the united states. we spoke to the ceo. guest: as we said it, we are least with the results. we are in an advanced state of operation with the department of justice. we are confident that we should be able to reach a final set -- settlement by the end of the year. manus: stocks in china closed up after a volatile day of trading. the index, a fifth of the market remains frozen. china tightens control of online financing and lending with part of it this year. coming up, is gold losing its shine? why the metal is headed for its

next big drop. banking woes, we look at barclays and standard chargers. the plans for cost-cutting. made.com is expanding in europe. ♪

manus: welcome back -- >> welcome back to "the pulse." greece gave the order to pay back. this is the ninth day of games. last week, we were up 4% are in we are adding to that another half of a percent. metals are dragging the market at the bottom. there is gold. it's down 1.69%. gold futures are at the lowest level since 2010. traders cut their positions last week. fear not, consumers with weddings in november and december will wait for a nip lower on gold.

the dollar is turning around again. the dollar is one of the strongest currencies on a global basis. consumer prices rose for the first time in six month. the dollar had the best two weeks in a number of months. we are seeing the rate hike in the united states and -- here in those are --. those are your markets. the question of the day, with gold hitting a five-year low, would you buy or not? i find the responses interesting. we will not read the road wins. it very much is a buy/sell opportunity. it's a wait-and-see opportunity. sell, sell, sell. the dollar is trading higher. ok. let's get back to alex.

she is a fixed income fund manager at schroders. we were talking about rates in the united states. i like what you said in your notes. the market is underestimating the trajectory for potential rises in rates. you sound like me. that's a dangerous admission. you don't seem to be believing this smooth and gradual path that jonathan and mark seem to think we are on. alex: they would love a smooth and easy path, it makes their jobs easier. when you look at history, policy arrows -- errors are more likely to happen the not. we think they are being late in terms of what we look at with inflationary pressures that are building up. you cannot be gradual. you cannot do both.

manus: this brings us very nicely this is my chart. i quite like it. it is a five-year five-year. it's a bit tiki. there you go. this is a five-year five-year rake even. what does that mean? where does the market think inflation is going to be in five years time? as you can see, it's nowhere near the inflation that we had in 2011. there is a trajectory. the market is beginning to believe that inflation will rise. is the market prepared? alex: we don't think so. when you look at what is priced in, it's possible that they do wait until march. when you look at what is

happening with the employment cost index and the jobs market that is very definitely picking up. we've got some of the best monetary policy we've ever had. we've got quite a ways to go. manus: if you dive interest rates in the united states, what is your projection for rates going into 2016? what is your jumping off point? alex: it depends on who you speak to. we have different views. it's more than the two hikes that are priced in through the end of next year. we think once they go, they will have to heighten more rapidly, maybe even every meeting. growth is structurally lower than it has been in previous

cycles. you can't start where you are and do it gradually. manus: we've got minutes from the bank of england this week. there is a number of variables to focus in on. they've got to move past the currency look at inflation. haven't they? alex: absolutely. it sounds like they could be. the u.k. is very much like the u.s. when you look at what is happening in the labor market. there are inflationary pressures building up. there is no reason to believe they can wait any longer manus:. manus:consequences for the guilt mark? -- market? alex: i am beginning to sound stuck record. it's like the u.s.. i think the market has seen so many false starts on this, it's getting complacent about it.

manus: whose fault is that? great to have you with us this morning. coming up barclays may reduce its workforce by about a quarter. we will talk about were those potential job losses may fall. that's coming up next. ♪

manus: this is "the pulse or go barclays is cutting costs. the lender could see his work forced string by about a quarter. they are tackling a cumbersome and your craddick company. richard has more. you been following this. a quarter of the workforce means a pretty big headline. richard: there is a lot of stuff going on. it starts with john mcfarlane the new chairman come in. he removed the ceo antony jenkins. now we are getting a feel for what the board is trying to think about in terms of that performance at barclays. he has talked about accelerating the planet. one of the considerations they may have his reducing more staff

numbers. the numbers are not clear. apparently there is no formal plan in place. that is according to the people we have been talking to this morning. there could be a reduction to below 1000 -- 100,000 employees. they have about 132,000 at the present. manus: that is a gargantuan change from a human side and a business side and an implementation side. are they going to be able to reduce the headcount that much from investment banking? it sounds like that's going to involve a significant change at the retail level. richard: and is where the bulk of it would be. you would think where most of the crux would. -- come.

with more staff in the retail bank that is an area where they will be looking. manus: it's not just barclays that is in the spotlight today. he is really shaking up the way in which the bank is run. high it would report. what is your feeling there with winters? richard: winters came in in june. he is still working through his planet. he is going to real the plans later this year. october is the time with his new management team is properly in place. he has given us a feel for where he is going. he has given us 13 executives who will report directly to him. the deputy chief executive one of the last minute the old guard , he is moving aside slightly. the responsibilities are being transferred directly to mr. winters. manus: thank you very much for

the brief. we are you with a look at the stocks are in they are up for the ninth day in a row. ♪

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manus: welcome back to "the pulse." we're live from louisburg european headquarters in london. top headlines, banks opened for the first time in three weeks in greece. cash withdrawals are limited to 420 euros per week. the stock exchanges closed. there is an order for 6.8 billion euros in payment to the ecb. angela merkel is hinting at debt relief for the greek government

and speaking to a german broadcaster, she is prepared to discuss the matter once greece completes the first round of new bailout. she did rule out haircuts. stocks in china closed up for a volatile trading session. a fifth of the market remains frozen. they tighten control of online financing. online lending was partly feel behind the 150% stocks surge. check in with jonathan ferro. jonathan: putting of stats coming up. no real data this morning, no real news this morning and the trend continues and mainland europe. the dax is up 1%. a similar move in spain. italy is up 1.5%. this is the night straight day of gains the biggest winning

streak since april 2014. islet the lid on that index and show you some of the moves on screen. click the biggest loser, down 3.27%. the clue is in the name. let's bring up the commodities market and show you old. the precious metals complex is getting battered. gold fell 4%. it isn't bouncing off eight 2010 at low. it is down by 1.7% this morning. gold and precious metals are a getting battered. equities are higher on some winning streak. this is a nine day winning streak. it's a 10 day for spanish bonds. the nervousness around the greece seems to be over for now. the other thing to talk about is

those polls in spain. the protest arnie, -- party that tells you about the message that eurozone leaders have sent to people in spain and who they might elect. some of that risk is coming out of the bond market as well. manus: that takes us to our twitter question of the day. here it is. with gold and a five-year low is it a buy or sell opportunity question mark tweet me. don't tell me it's all tied to the dollar. well, you can do if you want to a friend of his hasn't all buried in his back garden. i like that. we've got the manipulation of the paper price of gold. the physical supply is drying

up. join the debate. what do you really think? tell us what you think. let's get out to athens. elliott? elliott: businesses have been impacted by the capital controls. i am joined i the chairman of the greek federation enterprises , thank you very much for joining us. how damaging have these capital controls been for your members? guest: it's pretty damaging. the supply-chain has been interrupted. even the manufacturing market for customers and supplies the economy is an open economy. you cannot export or import and

that creates big problems for businesses. elliott: they have lost as a result of these capital controls? will trust be rebuilt? guest: they have gone for good. i don't know what the long-term or medium-term impact of the activities will be. different enterprises, have information 8% decline and a 230%. -- up to 30%. elliott: this is a sign between greece and the institutions best and mark --? guest: they have to wait until the full capitalization of the banks which will happen in the second stage. this will happen around october.

hopefully they will lift. the major impact is the lack of trust. elliott: the possible exit of greece from the euro has been taken off the table. is there an increase in confidence with your members in the business community? guest: i am afraid until an agreement has been signed, the exit will stay on the table. elliott: greek banks are opening up though capital controls remain in place. the sales tax is increasing. the first test that the government will do what it says it's going to do, what is the impact of that on greek businesses? guest: it might be limited. it depends on the cycle.

the collection is important. i believe the capital controls have helped the collection of electronic payments. elliott: there is a silver lining? in terms of the overall deal, in the coming weeks and months, is that the best deal for greece? was it the least bad deal? guest: to my understanding the session will not be severe if we apply the structural reforms described in the deal. elliott: as well as being

chairman, you sit on the greek stock market, which is closed. how does the closure of the athens stock exchange affect companies like yours? guest: it infects mainly the investors. i don't know when or how the stock market will open. they will probably open by the end of the week it investors -- elliott: once the stock exchange opens are we going to see a decline in companies? guest: i think there will be a decline. long-term investors will not be affected.

my question is how they will open the banks before capitalization. elliott: once the stock exchange reopens -- guest: it may be traded under limited terms. elliott: people see what is happening in greece. on the surface, everything seems normal. how do we square this that seems so normal on the surface. did people have money stuffed under their mattresses? guest: it looked like they can adjust to the suggestions easily. we are quite adjustable. hopefully we will find growth again. elliott: thank you so much for joining us this morning.

you heard it from one of the kings of greek industry. they are going to be going through even more adjustments as well. manus, i will hand it back to you in london. manus: well done this morning. thank you very much. still to come, we will speak to the ceo of made.com and ♪ why they have expansion plans. ♪

manus: we are live from bloomberg headquarters in london. here are top stories. italian workers have been kidnapped in libya. the foreign ministry said they kidnapped -- were kidnapped near an oil producer. the price of gold has hit its lowest level in more than five years. precious metal prices were hit hard after china said it was holding mess -- less metal and reserve grade platinum wants to the lowest level since 2000 -- 2005. down jake and sees -- job vacancies jumped 56% in june.

that reverses a drop in may. the city added 13,000 new positions. the number of people looking for jobs jumped 26%. this is a subject close to my heart, furniture. the design rand made.com has come around in five years. it's ready to expand. joining us is the ceo ning li. great have you with us. is that more than the market thought you might do? justify yourself tell me what this is going to do. ning li: we have proven successful in the u k. we started to expand to international markets. we started in france and italy

and most recently in germany. we are in six companies in europe. we thought the timing was right. we know how to do it in the u k, we can be successful internationally to make a european a brand. manus: i love the out. we have some of the images. it's very all alone. having broken the u.k. market is the most important thing to get the german market? will you challenge ikea? ning li: if you look around the market today, you have ikea witches good at functional furniture at an affordable price. if you want something nice, you go to something much more expensive. we are bringing a high-end designer furniture at much more

affordable prices. we want to give people an alternative to shop someone else than ikea without breaking their pockets. manus: i quite like that idea. i was buying a few things. i like to touch. i like to see the product. i am going to order online as well. wayne over the demographic is a challenge, isn't it? the only way to grow this business is online. ning li: we think online is a scalable thing. it's generational. in the 1930's, before you want a house, you did not invest in furniture. people in their 30's, it's the first time you have a customer

that are digital natives. these people, it's the first time they are capable of finding furniture on line. if they find the right offer they will be tempted to purchase online. manus: let's get to the nuts and bolts of the business. put your margins like? what your profits like? ning li: we have a very attractive margin. gross margins are in the high 50's. that's unusual for an e-commerce business. we are not profitable yet. we are breaking even in the u.k.. the international market is where we are investing very aggressively. manus: in terms of the business, as you look into the future you've got a hold on the u.k.. we are very aware of your brand.

give me a sense of the kind of money you are spending on marketing and how that fits into your business. ning li: it is your rent. lucky for made.com. the vast majority of people that come actually come through word-of-mouth and recommendations. we spend a lot of money and that represents a small fraction of growth and customer revenue. the vast majority of people come to us the recommendations of their friends, the press organic traffic. manus: what's been the biggest challenge for you.

ning li: a five-year business. for a start up that's old. for a brand, it's old. there are a lot of challenges. how to scale the business from a u.k. based only business to a european business. we want to be an international business. equally, how to convince people online is a channel. this is a good channel for them. they have an attachment to the touch and feel. that's why lately we have rolled out an initiative. it's an adjusting concept.

customers can open up their homes for potential showrooms for other customers. imagine you are browsing online. manus: i've got a very empty space and home. you're are very welcome to fill it up with things. we wish you well for fundraising. come back and tell us when you're ready to ipo the business. ning li ceo of made.com. it's a big week for eight and earnings. we will break that down for you. apple is that he. it's earnings are later in the week. we will talk about that. that is next. ♪

manus: welcome back. we are streaming on your ipad. it's a big week for data and earnings. this is what we are watching. tuesday, it's apple then yahoo! and microsoft. some of the technology moves last week were outstanding. you got amazon and mcdonald's. friday it's purchasing managers

index across europe. wednesday, you are going to have some issues in greece. it's going to be round two of us there any voting. we are standing by in greece. between now and then, the ecb is done. we are building up to wednesday the parliament three vote. elliott: we are. this is not going to be another ill tempered encounter between the prime minister and parliamentarians. it's the own party. we've had some resignation. this time, they are going to talk about increasing taxes and dealing with early retirement.

these are all measures that were part of the negotiations that the ice between greece and the eurozone last week. they agreed on these. they were agreed upon. it's only as a result of those agreements that the rest of the eurozone read it to go ahead with another bailout worth 86 billion euros. that's what the measures on wednesday are about it. this is the latest step for greece to show that it means business. it will make good on its commitment for reform. manus: today, it's very symbolic . getting the banks open, they

might not be doing a full business, but getting them open and let people get out nearly 500 euros a week. it's about changing the narrative from this as well. elliott: every little bit helps. i spoke of small measures. the door is slightly ajar. they can access a new positive checks. they can access safety deposit boxes. there is normalcy returning to the banks. the capital controls remain in place. there are restrictions. until that is fully lifted, which people think that will take another three months or so underneath they remain very abnormal. manus: keep up the good work there on the ground for us. we've got three big things that

we are looking at. the strength of the dollar. there is a tawdry affair in the gold market. that's it for london. ♪

announcer: this is "bloomberg surveillance." tom: a classic haircut is out as germany demands more greek austerity. merkel seems to bend a bit in athens. the athens stock market today

remains closed. barclays -- it is the new global banking. 100 for jobs will go. morgan stanley will report next hour. and what can you say echo candidate from takes no prisoners. a republican war ensues. good morning, everyone. this is "bloomberg surveillance ," live from new york. i'm tom keene. joining me, vonnie quinn and brendan greeley. brendan i do not even know where to begin. we could do the washington bit or greece. i guess we start with greece. brendan: "takes no prisoners," really? do they pay you to do that? that's amazing. it is unresolved. we can all go home now. tom: i don't think so. it is 90-something today in new york. ian bremmer joins us in the next hour. michael pond in the next hour.