both are very frustrated with the ecb. we see the ecb as a big softy in europe.us a little bit more -- brendan makes a great point about these groups. some think mario draghi has not gone far enough in his policies. tell me how policies have played out throughout europe. give me a sense of the european feeling about the ecb. hans: it is very hard for mario draghi to hit the goldilocks notes. the main question everyone is wondering now that he has started quantitative easing is when is he going to end it? when is he going to start the taper? so, if you are from the european left and you are looking for boogie men, mario draghi seems like an iconic person. it seems that the german finance minister would be higher on the list. look at the coalition in greece. the left-wing party, who did they join factions with? they join factions with the right wing party. they joined party with a right wing party that has been pretty -- they have not been as bad as the neo-nazi party but they questioned elements of the holocaust. this idea of left and right coming together at the

a little bit of nervousness surrounding the ecb.d about the emergency liquidity assistance. seems the markets are brushing it off. guy: yesterday, they moved higher in the u.s. we price some of that. the dax up by 1.24%. the ftse, a little bit of the later. after a couple of down days, we had some strong up days. francine: london calling for mary j. blinge. she talks to bloomberg about her new album produced in the u.k. capital. ♪ francine: welcome back to "the pulse" live on bloomberg tv and radio and streaming on bloomberg.com. the tribeca film festival is in full swing in new york and that is where stephanie ruhle sat down with mary j. blige. blige chronicled the making of her most recent album, "the london sessions." just after -- asked after the making of that album. mary: we created a song called "follow." that was the first we're going to do for the ep. so, when i brought this on back over here to capitol records, i played "follow" and the chairman went crazy. let's have you go back to london to finish the album but not to fi

today's ecb meeting should be more imminent -- uneventful.ght face today, is tapering on the cards? are the ecb forecasts to optimistic? what is the latest on greece and the structural reforms? it probably will be one of the more uneventful meetings. caroline: you said it well. let's take a look at the other top stories. nigel farage just sent his manifesto and said it was serious. he pledged tax cuts and more spending on greece. president obama intends to drop cuba from a list of states connected with terrorism. it marks a shift towards restoring relations between the two countries. the congress will respond to the notification. sri lanka unexpectedly cut its key lending rate, it cut to 8%. it comes as growth slows the most in two years. you can find more on that story at bloomberg.com. mark: the eu could issue charges against google this week for violating competition laws. it will is accused of highlighting its own services at the expense of rivals. the implication could be severe with hefty fines which could constrain how google delivers

jon: does the imf to president over the ecb. that is my question. we will talk about politics and the lib dems. we're showing you via footie markets and that is short of the territory. the market is near a session low . that is near a record low. some remarkable moves you want to talk about. i am on twitter. good luck for the rest of your day. francine: china's slowdown. the economy grows at its weakest pace in years. duration doubts. no change in policy expected on the ecb, but president draghi will be questions about an early exit. europe takes on google. the tech giant told it will face charges for using its dominant position. the french government stays out of the way.

olivia: the ecb in frankfurt what is the distance between the ecb and berlin here?owing wider and wider all the time. the ecb has been made a model of the bundesbank. that was not an accident. mario draghi's taking on more and more responsibility for economic conditions in the eurozone. tom: let's get somebody in the real world, bob nardelli. how does a corporate officer work at siemens or nestle or were ever with german rate at .127? brendan: -- olivia: i know how you operate. you issue bonds at negative yields. robert: and we are seeing a lot of them issue bond that negative rates. it is a challenge for anyone running a corporation in that environment. brendan: but again, olivia, to your question, even at these rates germany is not only to borrow money to spend on infrastructure. the decision is out? tom: yes let's go back to anna edwards for perspective on the non-news. anna: the ecb rate is unchanged at -0.12%. as i said, no change, but expect some fascinating insight into just how long they will carry on with the quantitative easing program later on. perspectiv

this comes to fruition and the ecb is nervous.ould argue they have the best information out there. this is a liquidity story. jonathan: it is. fiscally a liquidity story. they are running out of money. they have to find cash. you have two hours to analyze this. we will talk about the endgame. maybe there is not one. maybe you give them enough money. guy: that is all the political noise is indicating. if we say you cannot have the extension, they are tightening the screws and they want action. i wonder if they are prepared to extend further. jonathan: they say they have a redline politically and maybe that is where the endgame is. who knows? i don't. guy johnson will try to find out. we had to the break and here is a picture of the markets. yesterday, it was about miners. today, tech stocks. the stoxx 600 is higher. the index is up by 2.3%. the three year yield is approaching 29%. want to talk about this? i am on twitter. good luck for the rest of your day. guy: the ecb is studying measures to limit the system to greek bank. franci

the ecb is expected to meet later today. in the past, they have done it every wednesday on increasing emergency liquidity assistance. that is 74 billion right now. i'm reporting with the ecb is expected to do. the euro fell on that news yesterday. mark: john isner of factors is optimistic -- he is optimistic. what did they say? hans: whatever he says needs to be filtered through, not only what is said in brussels but in berlin. yesterday we heard from mr. juncker. here's what he had to say -- a bigger effort by the greek side is needed so that we can close the topic of interest on both side. he said that the intensity of talks has increased in the last four or five days, but they are nowhere close to a final deal to have a final push. this summit will be more of a status check. on thursday, eu leaders will be in brussels, and there is a chance that chancellor merkel will have a separate meeting to discuss what will happen next. mark: thank you. hans nichols in berlin. good news out of japan -- the trade balance has swung to

greek lenders are locked ourt of regular ecb cash tenders.ran's president is saying that saudi arabia and airstrikes must be stopped. the u.s. is dispatching an aircraft carrier is a warning to iran. a dash cam video captures the rescue of a man from a burning car. two officers pulled the men to safety. dr. say he will be ok. -- doctors say he will be ok. tom: ira jersey with credit suisse. an important conversation on when will the fed raise ra tes? then we move on to the tragedy we are observing in europe. a discussion of this italian response and european response to the drownings in the mediterranean sea. then brendan's styling. how to buy a suik how tt -- thow to buy a suit? brendan: if you have a lot of money. tom: there is that, too. olivia: big bloomberg school. the ecb is studying measures to rein in assistance to greek banks. overnight, we spoke to former ecb chief jean claude trichet. trichet: nobody is optimistic on greece. we have to be totally realistic and it all depends on the maturing of the position of the greek government u

they can get quite substantial cash for the ecb.ey're increasing every two weeks by some million or so. not a tremendous amount but now it's over 70 billion euros. >> thank you very much. see you very soon. now in line of what annetta is talking about is a grexit becoming more and more likely. he said it would be great. >> that would be an amazing event for europe. it means the beginning of the end for the european union. it's not a very happy picture and i'm sure theof that. >> you're arguing that we should be buying greek bonds at the moment. is that correct? >> yeah it's on a three month basis so it goes on the other side of the summer and basically what i'm seeing is that the passes involved in the discussions and european countries have a strong interest in coming to an agreement and it would be quite large politically, economically in europe. they're making a serious attempt to try and break a solution here because it's been raised at both the u.s. and other parts of the world economy to get to an agreement and exit from the e

that's when the bud of the ecb will mature it has to be rolled over -- that is when the bond of the ecbe and it has to be rolled over. it would be a default not just arrears. and most likely the ecb, the banking regulator whatnot be able to say the groupings are solve it. -- greek banks are solve it -- solvent. all of these agreements are really the last for the second bailout package. that would allow them to go through the rest of this year with financing. after that, they would have to negotiate a third bailout package. and a looking for 26 table. caroline: it and never is. mark: some negotiation of its debt bonds tied to gdp or some type of arrangement? david powell: the greek government has been broadcasting what everybody knows that it's dead is unsustainable. robert not able to go with the extended that was so that's probably not able to go with extended that we saw with the other government. it would never been to repay all of this. caroline: david powell, thank you. among a myriad of data. let's count some earnings. credit suisse reported. they beat narrowly -- as they narrowly

olivia: the ecb's statements are out.utes from the march 5 monetary policy meeting, the meeting in which draghi put meat on the bones of this one trillion euro quantitative easing bazooka where he outlined. brendan: we're looking for hints of the tapering. olivia: we are going to move on to ponce nichols -- hans nichols . but first, top headlines. the original deadline -- diplomats were not able to resolve the differences over iran's nuclear program, talks are resuming in switzerland this morning. iran's foreign minister says there has been good progress but still no solution. both sides may end up settling for a joint statement that is not the blueprint they had hoped for. the white house says talks will go on as long as there is movement. >> as long as we're in a position of convening serious talks that are making progress that we would not arbitrarily ended them. but, if we are in a situation where we sense that the talks have stalled, then yes, the united states and the international community is prepared to walk away

without the ecb money. it's not official ecb money. it's all the euro system.s the endgame? you just push the can down the road, which ultimately suits everyone? >> no government repays its debt. it's about servicing its debt. the u.s. has how many trillions of dollars of debt. that is the issue to me. the debt servicing costs are very low for five years and out due to the last bailout deals. mark: the debt load is a worry. >> for the next few years it's not going to be a tremendous burden on big finances. caroline: thank you very much for joining us. mark: now the launch of new products. smartphones in 20 countries including the u.s., the u.k. and germany. >> the customers cannot take it home. they can only hold it. customers come to the buying experience table where they get to talk one-on-one with a staff member. they found 14% of australians considering buying an apple watch weren't sure when they wanted it. quite a lot of times i have my phone with me and it's a little intrusive. i think having a watch would be more subtle in terms of seeing messages. >> n

jonathan: were you disappointed by the ecb press conference yesterday?: the fact that there was no obvious change in monetary policy coming the fact that draghi didn't say anything about greece, or the fact that someone jumped on the table? jonathan: guy johnson coming up on "the pulse" very shortly. as we head to the break, i'm looking at german bond markets. the 10-year yield, i know it is not a one-way bet, but seemingly approaching zero. the 30-year, this is really interesting. a yield below 0.5%. quite remarkable stuff. if you want to talk about it, i'm on twitter. ♪ guy: no deal and wolfgang tells bloomberg there will be no new money for greece at the meeting. jack lew warns europe that a greg's it could have -- a gre could have consequencesxit. answers called on from local citizens.

alessandro: it is something the ecb is investigating.he press conference is open to journalists, so we imagine that maybe she got in the immediate presentation from someone. we don't know yet how she got in. erik: the t-shirt read, and the ecb dictatorship. where is this woman from? brandon: there is a clue in the t-shirt we will get to. you remember the protest about one month ago around the ecb building when it was inaugurated, cobblestones ripped off the pavement? cars set on fire? this is not that. i have been looking at the -- stephanie: blockupy. that is a clever name. brenden: they are not tied -- stephanie: throwing glitter can be very confusing for him. erik: if we are going to throw anything, why are we going mario draghi into the same campus -- brenden: that is a fascinating point because it seems mario draghi that is in the same light as these other people. we see him as europe's great softy, providing stimulus where nobody else would. he is still seen as not doing it nearly far enough by huge portion of the european left. st

with a press card you can have access to the ecb. switching to monetary policy now, mario draghi has not said anything very new. he's quite optimistic about the outlook for the economy but saying that is depending on the ecb implementing quantitative easing and to at least september 2016. if inflation picks up a lot faster than expected then ecb could stop the program earlier than september 2016. he rebuffed criticism perhaps there's not enough bonds out there for them to buy because a lot of bonds here in the eurozone trading with yields and ecb said earlier they are not going to buy anything with negative yields lower than the deposit rate which currently is at minus 20 basis points. but for now things look relaxed. next time we get the new stock projectstions from the ecb. the eurozone looking at the lower euro rate exchange which is helping the eurozone. >>> now to china where the world's second largest economy grew at the slowest pace in six years. investors are now looking to see whether the government will take any additional

and we'll get the ecb's latest rate decision.e don't leave us yet. >>> a bipartisan group of technology ceos and top executives are in washington today to meet with political leaders. it's a one-day summit on ongoing policy concerns affecting the industry. tech net was co-founded by john chambers and he joins us now to discuss everything from tax and trade reform to cyber security. we've got to come back to this now i get it. that's why you're on the big squawk box this morning, john. it's great to have you on so early in the day. >> it's a pleasure to be back with you again. >> it's good to have you. now, the main thing you want to get across from us at this point and then we'll talk about some other issues but we need to be the global leader in digitization is what's on your plate today. is that the crux of things? >> it really is andrew. in many ways what you're seeing is the information age during the '90s that drove the american economy, over 20 million jobs created, 16 18% real growth in gdp is about to repeat with the digi

one i remember inside the ecb will be more security. i think compared to the fed for example in the states, the security level at the ecb is still already lax and quiet easy to get into it. it's perhaps a little bit better than before but still room for improvement. back to you. >> thank you for that. it did bring to mind jim, previous signs of protest that we've seen out of europe. you thought immediately of murdock. >> i think there's just a kind of sense that i don't know you can't get from here to there with the security of the united states. it seems like people can kind of throw pies throw confetti and jump on the desk. i'm glad for security. it's not a developing story. >> she takes care of business. he could kill somebody. i mean geez. >> that's absolutely. >> if you had a woman dressed like that you think she came to talk about money supply? >> you're saying she was disguised. >> disguised as what? >> like a journalist. we all dress nicely. >> there should be a dress code. >> when we come back former irs commissioner on this ta

the ecb has said, yes, we plan to do qe until september 2016.here are some technical issues about getting purchases of european bonds in certain illiquid markets, but what happens if later in the year the inflation numbers pick up again? european growth accelerates. expectations could change in the fourth quarter of this year. if qe stops or reverses, that would create a serious problem for markets. is that going to happen over the next 3-6 months -- no. jonathan: if it is a buy everything scenario with qe -- bob: if you get a reversal of qe or an announcement that qe is going to slow down, you get a selloff in european bonds. german 10-year bond yields in 3-6 months time could be close to euro, and could snap back to 50 basis points or 75 basis points, in a reasonably short time. the ecb is very sensitive to any slowdown in qe later in the year or early next year. it has got to be handled very carefully. a sharp selloff in bond yields would trigger a negative impact in equity markets. jonathan: bob parker is going to stay with us. are things go

it tends to be ecb.n mario draghi said we are likely to cut rates, that was a significant turning point for the euro. it tends to be relative macro fundamentals like the u.s. or the u.k. it does not tend to be politics. that said, the politics have to stay quite steady. caroline: you are not expecting an unraveling? phyllis: we are not. our view his they will come to some sort of agreement. although, we are still in early days. even though the april 9 deadline is looming i think eventually we will find a deal between greece and its partners. there is too much at stake. mark: let's talk about the flipside of the trade -- the strength of the dollar. nine consecutive months of dollar gains. three consecutive quarters as well. many calling an end to the dollar's bull run. you are not in that camp? phyllis: no, we are not. it is almost above all the valuations we are looking at. but, we know that in periods where policy is being normalized, the models do not tend to always get the best indication or it does n

the ecb is there. do you really want to go against the ecb? if you borrow at zero -- this is for me the problem. europe. those who benefit from these amazing low yield don't want to borrow. we have decided that we are in a fiscal straitjacket. we have to have that transmitted to small and medium-sized enterprises and others that go through the banking system. so that is not so much a policy. i'm out. it is strange. guy: beyond strange. it is a new weird. francine: we will talk plenty more about the fed next with erik nielsen. we will take a break. before we do that, what is on our radar. the ecb party leaders will take the stage for a tv debate. they will square off before the general elections. each will make a short opening and closing statement and have a minute to answer questions. francine: clothing sales at marks and spencer's rebounded for the first time since 2011. same-store sales gained. the improved numbers follow difficulties in previous quarters. guy: in a bloomberg exclusive interview, the belarusian president and host of ukraini

at the ecb news conference, a terrifying moment for ecb president mario draghi.journalists, apparently enter front of him. jumped up onto the desk and threw confetti over him. terrifying from his perspective, if you don't know what's likely to happen. a clearly a major security breach at the heart of the european central bank. which is not a national authority. it doesn't have its own security forces. it there will be hopefully as far as many people concerned, heads will roll. she's protesting the bank's, the dictation of the ecb. tension running high in europe over austerity. draghi continue the the news conference after an adjournment. despite the you see the low rates on the german bund. the maturities on the bund in negative territory. he said there was not a bubble on the european sovereign debt market because the european banks are not increasing their leverage. he said it was premature to talk about tapering qe so soon. take a listen. >> i'm quite surprised frankly by the attention that a possible early exit of the program receives. when we have been in th

you don't want to fight the fed or the ecb, i suppose. alix: what you think of this?ink it's pretty amazing where german yields are right now. 10 basis -- 10 basis points for a 10-year investment, so that's the market assuming ecb rates will not go up in 10 years. recently, we've actually had very strong growth -- alix: your audio's not working, so we're going to get you hooked up. i'm going to go to lisa. you really wanted to know when he was going to make this short. did you get an answer? lisa: he basically the same right now it's not that much of a drag on performance if you are shorting something that has a negative yield or any young. one of the challenges of shorting a security that has any positive yield is you are losing that. the price has to drop enough to compensate that loss payment that you have to make. i think that's what he was saying -- if you are going to go along the dollar shortly bund you might as well short the bund. i don't know that he answer the question when, but that's on a lot of people's minds. alix: did you get a good read on when the vo

it is mario draghi and ecb's plan, to force more risk taking.on: what have you been doing at state street? rick: we are still risk on. we think the global growth is a little frayed at the edges and is still a reliable story for 2015. overweight equities. we have some overweight positions in credit as well. not a high yield, but in long-dated investment-great credit. taking a little risk in the portfolio periphery. jon: when you look at the euro and markets as well, we had the terrific move in the last three months. the euro plummeting, the markets surging, everything gets iffy. the call seems to be to the end of this, the euro bearishness is over. could this continue for longer than most people think in your mind? rick: there are different elements. the dollar has the potential to be in a multi-year trend. it could go on for some time. 2015 could be shock free if that is better than the european cyclical recovery is better than expected. the multi-you recovery seems to be persistent. the other is the earnings trend. u.s. earnings have been a lit

. >>> we're getting some flashes coming out of the ecb. they're saying growth will come in at 1.7% versus 1.5 in january. so slight increases for those. 2015 this year 1.4% the expectation versus 1.1% in january. increasing these forecasts across the board. >> it's interesting because in the u.s. a lot are downgrading their forecast for 2015. what happened ifs europe grows at a stronger rate than the u.s. wouldn't that be a surprise? >> it's clear how the momentum is certainly behind european growth. we're also having inflation numbers coming in as well. these forecasts of this 2015 hicp at .1% slightly lower than the january forecast of .3 where as 2017 it's been increased 1.6% now the forecast versus 1.5%. we also had flashes that greek bond yields have jumped higher. the curve has inverted further. greek issue continues to elevate as we get closer to the crucial meeting. as we mention at the top of the headlines, reducing expectations that any deal can can be reached at that meeting. let's get straight to our first guest. richard kelly

conrad: the euro dollar exchange rate fell again on thursday and this was influenced by reports the ecb has increased the emergency liquidity assistance for the greek banks. the european central bank did not confirm this, but the trading floor sounds precise. 73 point 2 billion euros is the total amount of emergency liquidity assistance the ecb is said to be allowing the creek banks. the banks need the money because they buy government bonds from the government in athens and his means that without the money from the ecb greece would be insolvent. >> let's get you up to date with how stocks fared on thursday. now better than expected german numbers boosted confidence on the markets. the dax climbed to -- just short of its record high. the euro stoxx 50 rose by 1% and trading is underway, the dow is currently up by .18%. one euro will get you $1.038. >> shock and chaos in italy where a man has gone down to the judge, a lawyer, and a codefendant. >> he escaped on a scooter it and was captured later. >> confusion and panic at the palace of justice in the city center. inside shots were fired

ecb policy makers meet today. drab dfg draghi will speak.ut there's questions lingering over greece. >> actually we're expecting a wide range of topics to be covered during that press conference. of course it will be qe and also whether there's enough bonds to buy until the end of qe which is supposed to be september 16th. moody's came out with a study that they think bonds will be in scarcity as soon as the early start of next year or end of this year and also looking at the bonds in the euro zone trading with negative yields and now making up more than 40% of all bonds in the euro zone that adds to that argument. so that's one big area. of course also the ecb will be questions on what they think about the increasingly negative yield curve in the euro zone whether this is not adding to financial instability. another big area is growth projections. we don't get any new staff estimates. it's in june when we get an update on them but recent economic data is suggesting there is room for a revision as well but looking at the minutes, the governi

over the ecb. it is a potential event the proper event is whether greece it stays or comes out. francine: your take? guest: the politicians want them to stay in. even though they say it is more containable that was, greece leaving could open up certain avenues europe does not want to go down. whether greece can maintain the reform program that could stir up domestic issues in greece. at the moment for the next several months it will not be a major issue. francine: do you worry about france? that implies we will see a correction, triggered by -- guest: take a step from europe. if you look at the u.s., we ended qe five months ago and equity markets have made no progress. we've seen a real sharp slowdown. though everyone is talking about the weather, this is centered on the energy sector and the slowdown in capex. now all major sectors have seen a downgrade from where we are now. this will probably spill into q2. if we get some sort of correction in u.s. equities that forms a headwind for europe and j

from the ecb, we have clear pressure. at the same time, mario draghi is saying that some changes are taking place they are in a slightly better position and greek banks are still qualifying for emergency liquidity assistance. then you have the pressure from the finance ministers -- sure they are not talking about any contingency planning. one thing the eu is saying is what greece could do is have a public vote in parliament. here's a quote from an interview we had -- "it would be a welcome step if they agreed to reform proposals adopted by greek parliament without delay." in a million dollars in payment due today to the ecb from grace -- and are ever, we have some big payments coming up and the bond market is reacting negatively. last week was the worst week for greek bonds. caroline: clearly, creditors are lightning on the pressure. but we have also had barack obama joining on the side of the creditors. before he had been sympathetic degrees. -- sympathetic to greece. hans: this is a shift on the u.s. position. they were

but traders resold the euro on continued quantitative easing measures set by the ecb.t is now trading higher after the ecb president mario draghi's comments on the european economy. and the dollar is trading lower against the yen after the weak u.s. economic figures we just touched on obviously including industrial output and manufacturing activity in new york state. >> and back to the asia pacific there is a focus on australia this morning. >> a big focus on the jobs numbers. that's going to be the highlight for the morning. and that also follows a survey of consumer sentiment that showed sentiment falling below last year's average. australian resource related shares have been hurt by a slowing demand in china or slowing growth in china and falling prices of a lot of industrial raw materials of which australia is one of the biggest producers. but right now a bit of a mixed opening for the nikkei and the topix. we'll see how that progresses back to you. >> thanks for that update. >>> officials at japanese automaker toyota have announced their first major expansion over

the ecb is giving a strong boost to the market with ecb.saying they need a debt restructuring and the situation doesn't change. in at the end, they will reach an agreement but a lot of volatility. they will postpone all maturities and have lower costs. they have to much debt and they need a flexible deal. they need something more flexible. jonathan: when you talk about the bond vigilantes and they need to wake up, and greece, not so much. when this crisis was really kicking off but elsewhere, where do you think the vigilantes need to wake up? alberto gallo: there are areas that half really compressed. website portugal tech -- we have seen portugal with technical factors driving yields so low. the fundamentals are so different. the u.s. market is really wide because of the fed's comments. we see these anomalies and the market, evening emerging markets to some extent has rallied on the china -- the chinese measures. there are a lot the risks in emerging markets bonds and other countries are slowing in growth. jonathan: i find your point and p

it also tells you that the ecb's qe program is very big. buying of the ecb is really driving down thele yields of the fixed income world. >> would these type of bonds look attractive to you? do you think investors should be paying the privilege of owning debt of the germans and even in denmark and switzerland, what we're seeing there? >> i think in the sthort term yields might go lower, over time we'll see that growth and expectations will move higher. then we can expect it move into positive territory again although it may take some time. >> do you think we'll see the ten-year german bond dip into negative territory? >> i won rule it out in the short term. it's very difficult to say. in the medium term yields should go higher. not a lot lower. >> some analysts say negative yields are actually good for the economy. someone wrote it's helping to keep mortgage rates lower. are they ultimately good for the economy? >> i think negative yields are a piece of an unprecedented degree of monetary accommodation and that should help the economy to re

so far, 75.5 billion has been injected by the ecb. greece cannot agree on the next course of treatment. unless they do, the triage could come to an end -- turning off the funding and leaving greece alone. that could require an emergency procedure -- capital controls. those controls could restrict the amount of money that could be withdrawn or transferred abroad, as happened with cyprus. it limits daily cash withdrawals to 300 euros. without a deal, the greek people could be with a bitter medicine to swallow. mark: we are joined by charlie head of microstrategy. greeks default without an exit is inconceivable by most. the chance that greece missing the debt payment we put up 40%. most respondents said it will not trigger an exit. do you see a default, could that not lead? >> if, for example, they are late on a payment, the mf says theyimf says they are in default. they have 30 days to pay back. even when we had the first greek bailouts we almost immediately came to the conclusion that another debt forgiveness or debt transformation pac

jane: the big winner has been the ecb.oes the better german data -- it will allow the euro to weaken. the dollar is he a common denominator. if dollar strength does not carry on, that moderates the currency wars. in japan, we saw japan, back in recession last year. it managed to get out of recession in q4. the report suggests it is only just walking away from recession. growth is dampened. that raises the risk the bank of japan will do more. they will have to do more to take away the impact of the consumption tax hike. zero inflation. i think they may have to do more which means the yen may we can. caroline: if us a call. jane: we've got 126. if that starts accelerating again, it could go higher. the dollar is the common denominator. that should slit on the pace of dollar appreciation and some of the volatility we have seen an fx. -- in fx. mark: jane, seen your -- senior fx strategist. caroline kola more of: more of our interview with the man referred to as europe cost last remaining dictator -- europe's last remaining di

the hunt for yield and also monetary policy and what the ecb is doing and you don't want to fight the fed or is ecb but as investors continue to look r for tuns specifically in the yield market i want to point our attention to what's happening in junk bonds. you buy these bonds because you're hoping that will be a good opportunity to get good yield but right now the average yield of junk bonds only 4.5%. you're not getting that much. what's driving the rally in those bonds? >> people are searching for yield. they say the yield on governments is solo. we can't invest in those and pay our -- if you're a pension fund pay our liabilities in 20 or 30 years so they're looking for higher yields and they're taking risk which seems like it's done at the wrong times in retrospect. they're not historically tight. it's more that the treasuries themselves are such a low benchmark. >> you read my mind. where they're choosing to put money at the moment is that changing because of this trend toward negative yields? >> no doubt about it. there's many investors that think they can't stand to invest it

marcel: for the ecb, the issue of an exit is still far away.eep buying government bonds at least until september 2016. how will it get out of the low interest rate environment? it is somewhat easier for the ecb to manage that exit because it conducts monetary policy in a different way. one of the big challenges at the moment is you have two divergent patterns. they are trying to ease the exit and that puts pressure on the european market on europe, on long-term government bond yields. i expect this to continue for the next few months. volatility may continue to pick up as we get this divergence playing out. francine: do you think we will get euro-dollar parity this year? we were close and now it is blown out of the water. marcel: you know with changes it is almost like flipping the coin. you can hardly give a good prediction. equilibrium is somewhere around 1.15 to 1.25. sure, it could drop further, it could go to parity. my best guess is we will see a fluctuation somewhere between parity and 1.15 reflecting that the european economy is weaker

everybody underestimated the effect that the ecb's bond buying program would have. first the announcement and in the start of that on buying this month. it's just driven money into the stock market right here. the ecb needs to kickstart the economy and drive inflation up. provide more impetus for loans. a lot of that money is going right here. investors don't see other alternatives viable at the time of record low interest rates. anchor: meteorologists are calling it the biggest storm to hit germany in years. anchor: it has wrecked havoc. >> rail service was canceled as the storm passed through. the famous cathedral was also blocked off. officials were concerned that they might dislodge stones endangering pedestrians. the powerful storm left its mark throughout germany. knocking out power and creating chaos on the roads. as the day wore on reports of death and injuries began rolling in. one man was killed in eastern germany when a concrete wall collapsed on him. a falling tree crushed two men in a road maintenance vehicle. >> the strong wind will continue well into

the ecb is getting more nervous about the emergency liquidity assistance.dity getting sucked out of the system. i think you already saw they put their hands on the local governments and the next issue will be ious. at some point the faults will occur. unless greece and its creditors change course, we are headed to an accident which increases the probability of exit. i do not believe that greece can't exit and stay in the eurozone. some do. i don't. betty: we will have to leave it there by great to see you as always. our bloomberg columnist and chief economic advisor. we will be back in two minutes on "in the loop." ♪ betty: trading just under way and i am looking at my boards here. i want to get back to scarlet fu. cinders out from hewlett-packard. scarlet: snap fish -- no terms were disclosed here as hp sells it. it is part of them shedding businesses. hp ink was so personal computers and printers to businesses and consumers and is run by someone else. let us move on to some bigger m&a. teva has made a hostile bid for mylan to unite the big companies. teva

there is supposed to be a rollover to the ecb. now you're looking at the ecb having a lot of debt.he role of the imf and ecb in the sff which might be more manageable. the structure with a potential greek default -- the ecb would have to do a capital call. the member states -- somebody would be knocking on doors. structural problems with the ecb and imf, you are looking at rolling it over into another entity. alix: you sent us an interesting chart. we talk about how huge greek debt is. servicing of this debt is much lower than the peripheral countries like portugal and italy. are we overestimating that debt risk? guest: if you look at maturities as being a rollover, every time i see somebody go up and say greece is insolvent, they are bankrupt, these people are silly. the amount it takes to manage the interest payments is actually lower than italy portugal, and ireland. but then take a look at it from another way. if you look at the greek economy , precrisis, just when we're starting to negotiate the psi, the debt to gdp with that size economy is within the imf target. this 170 per

is the ecb's qe protecting week companies? with this blanket of qe, a lot of investors are saying it is. tweet us. here's a look at what else you need to know on this friday morning. u.k. unemployment figures are due out this hour. we will get the february unemployment rate. staying with the election, leaders of u.k. opposition parties have taken part in the latest pre-election debate. the debate took place without david cameron or nick clegg. a poll conducted after the debate showed labor leader ed miliband coming out on top. the world's biggest food maker reported first-quarter revenue growth that exceeded analyst estimates. nestle saw growth rise 4.4% thanks to improved european sales. the company still faces a slowdown in china and is looking to rebound its frozen food business in america. still i had, the death of tv dinners. we will look at nestle's lien sales in the u.s.. at 9:30, we have the jobs data in the u.s. we will talk to the man behind headphones and speakers. stay with us. we are just getting started. ♪ franci

the ecb would continue the controversial bond buying policy. this so-called quantitative easing has pumped 60 billion euros per month into the eurozone economy since march. he said it would continue until september 2016 even though prospects are now looking somewhat brighter. >> javier has more on the ecb announcement. >> treadeaders were expecting that central-bank rest conference but the disruption by the activist is the only surprise. they don't really like surprises so that is white mario draghi's words were welcomed. the exchange is stable due to oil prices. the latest numbers from china contribute to market tendency. china wants to grow slower and to steadier in a more sustainable way. that is a decision that would be a problem for some countries like india and brazil deliver raw materials to china. investors in europe do not seem concerned. that is what the green numbers seem to show. >> the dax closed flat. -year-old stocks 50 euro stox 50 -- the euro trading at a value of one dollar .75 >> lots more news coming up. >> european lawmaker

alix: guest: it is what the bank of japan and ecb have pledged they are going to be doing.rt of global stimulus. it ultimately came down to zero. that trajectory what you see is if the doj and ecb stay with what they have talked about, it's a pretty reasonable assumption. you can see the overall trajectory of global stimulus is as high as we have seen over the last six or seven years. what that means for the united states is more rate suppression and in turn, more volatility suppression. thanks to lower rates. the 10 year continues to not really move higher than the 2% level. scarlet: until the ecb and doj and the program. guest: then it is a very different card game. scarlet: "street smart" is next with alix steel. ♪ alix: welcome to the most important hour of the session -- we have 60 minutes left until the closing bell. stocks are climbing toward the record as investors weigh quarterly results from coca-cola to mcdonald's. we have treasuries sliding on speculation interest rates will climb this year. and we are counting down to earnings from qualcomm, facebook and ebay.

that you have china, japan and ecb all easing. the fed is still ultra stimulative. so with that backdrop, and an economy that is not that strong you end up with a pretty good back drop for financial markets. tom: your a claim is inherent optimism. how do you respond to larry summers' stagnation or the idea of new low terminal rates or terminal values america gloom. ed: my view is we will look back at this period five years from now and we will be in an expansion. we will say this has been the best environment. slow and steady. we are having a favorable pattern. larry sees it as a stagnation, i see it as slow and steady progress. tom: you printed no recession until out there. very good. ed hyman. a ofdoozy -- a doozy of a chart. olivia: much more to come on bloomberg "surveillance." comcast's bid to take over time warner cable is dead. what it means for the future of the industry. our twitter question of the day, what should comcast do with its $45 billion? tweet us @bsurveillance. we are streaming on your tablet your phone, and bloomberg.com. good morning. ♪ tom: go

a particularly volatile week for the euro heading into the ecb meeting. it was as low as 1052 this week. it's finishing at 1079. that's more on the u.s. dollar side than euro side. disappointing this week. the u.s. dollar just give up ground against most currencies in the week. so the euro shy of 108. the aussie dollar has too been soft during the course of the week because of weak chinese data at the start and sterling bouncing back today. that was weak earlier after inflation came in. pushing back rate rise expectations in the u.k. relative to where they are in the u.s. let's look at commodities. oil has recovered over the last couple of weeks but always with pretty big moves up and down highlighting the level of volatility highlighting that level or lack of level of conviction that we can have that this is a meaningful rally in the oil price. wti which did close on wednesday night at the highest level for 2015 is sitting relatively pretty at 56.3 compared to earlier in the year and brent at 63.7. gold hovering around that 1200 level as it has been for

ecb will do enough.what he is saying is european governments have not done enough. that is why he is betting against a recovery. either way, dalio's your alpha has returned more money to investors than any shareholder -- money to shareholders than any in history. michael: i am waiting on judgment. i'm not sure all the stories are correct. some of them may be conflicting. matt: we will see when the real numbers are revealed. rand paul is running for president. the senator from kentucky announced on his website and hour ago "i am running for president to return our country to the principles of liberty and limited government." rand paul will be the second official candidate joining the gop race. matt: stay with us. olivia: it will be exciting. ♪ [office phone chatter] [frogs croaking] you know what, let me call you back. what are you doing?! [scream] [frogs croaking] [yelling and screaming] it's back! xfinity watchathon week. the biggest week in television history. it's your all-access binge-watching pass t

we are also talking greece and the ecb. ♪ francine: china slowdown. grew at the weakest pace in six years. data take a leg down. duration no change in policy expected from the e.c.b., but six weeks in to q.e. president draghi will be questioned about an early exit. europe takes on google. the u.s. tech giant is said to have been told it will face charges for abusing its come nant position. and al at that kell teams up to make the world's bigst equipment deal. francine: good morning to our viewers in europe, good evening to those in asia, and welcome to those just waking up in the united states. i'm francine lacqua. this is "the pulse" live from london. now, china's economy is in the spotlight with multiple economic indicators pointing to a deepening slowdown. stocks are headed for their biggest drop in weeks after g.d.p. growth, output investment, and retail data all dropped in the world's economy, in the world's second biggest economy. our chief asia correspondent joins us. tom, china's g.d.p. came in on target. we had very disappointing monthly data

i am not sure the ecb would just be a catalyst to that.ghtening and that will drive volatility in our markets and likely across asset classes. scarlet: until then, it is a waiting game. no one expects this to happen in april. let's talk about earnings. we do get earnings from jpmorgan and wells fargo and that will hopefully get more activity going on in the equity market and what type of earnings season are you looking for for the financials? jim: among universal banks and investment banks 2.5% post-earnings, about what is implied right now by the options market. they will kick off this week. we count 40 of constituents in the s&p financial sector in the nested as we speak and with jpmorgan and wells fargo tomorrow. we are not sure the earnings themselves are tradable, but this could be a catalyst are financials down 2% year today. he only sector that has performed worse our utilities. it is also worth noting they have typically done well in march, up 4.5% in the last few years after the stress test it not happen this year. scarlet: give u

ecb buying government bonds.t there are signs of recovery and the recovery has continued in the first quarter but we are seeing inflation well below the target. anna: thank you very much. mark mobius is still with us. if i could get your thoughts on the u.k. situation right now. you are an emerging markets investor. your perspective is much more global. one of the big conversations we are having a bloomberg is there -- about the relationship between the u.k. and the eurozone. a british exit from the eurozone would have ripples to emerging markets, i'm guessing. mark: no question, there will be impact. we are invested in eastern europe and there will be implications. the interesting thing is that if the u.k. left, the eu would lose a strong critic, which, in some ways, has been good for the european union because you need people inside criticizing some of the policies. on the other side, if the u.k. leaves, things would go much smoother for brussels. they would not have to deal with a lot of the disputes that are