we have pretty decent growth in the ecb. you wonder how can interest rates can be so low for so long. one issue is buying. when you think how inflation will be, i don't see how safe interest rates can be at zero eight years out. there is this conflict which makes it so hard to see what is the appropriate level. >> yeah. some people are also arguing that despite the fact the ecb is not officially targeting the euro exchange rate but that might also be like a second thought at least when intervening into the markets. do you think so as well? >> these are -- this is just another one of the channels through which quantitative easing works. it works through risk and utility and exchange rates so of course they are looking at the mix. since they are paying not foreign currency but government bonds, the first impact is on the prices and yields of those bonds. >> so essentially the message also from the ecb be prepared that they are going to implement the full qe program as announced in january, even though some market participants

you think the ecb would be very cautious.onathan: they are concerned about the backup in yields not so much the direction but the speed. he has got to understand that is a big thing to say. >> yes, although you can imagine a position where beforehand it didn't seem controversial to say markets suffer from lack of liquidity. the selloff is bigger than you might have expected. you and i could have had that conversation any number of times. would we have known if we said it it would have had such a big impact? i am more interested in the fact the ecb has intervened in one form or another at the time that peripheral spreads start to widen. the thing they hate most of all is a slightly stronger euro. it is a lack of volatility. bond yields at 70 basis points. the big thing is the ecb has been all about containing loss of confidence in peripheral spread. that was the biggest win of this nudge from the market. we are still buying enough bonds that the idea of having a blowout in peripheral bond spreads shouldn't be taken too serious

but the ecb is buying the exact same number of bonds. they'll buy more over the next couple of months and less over the summer. >> the strength that we're seeing in the euro down today but still at 111. very different story than we saw in march at 105. does this make the quantitative easing program less effective when looking at the real economy across the euro zone? >> when you look at the long-term stimulus coming from a euro that fell from 140 down to the low levels there's still plenty of positive stimulus coming in. is there slightly less stimulus because we move from 105 to 110 or 115 range, sure. is the ecb going to be upset if the euro trades lower, absolutely not. it probably means more for the euro in trying to reinforce investors that rather than unwinding the bond trade you're seeing it on the equity trade. if it supports that side of things it does give you a bit more downside to the euro but means a lot less for bond yields. >> would you still buy the exporters here? that benefit from a weak currency environment? >> i think

manus: talk to me about the ecb trade.he decision over whether to tighten a emergency liquidity for greek banks. the fact the decision even needs to be made tells you about the situation. do you think the ecb could move to do that? they can be the ones that push the issue? >> i think that is unlikely. they do not want to destabilize the political process. they play the role of anchoring the political discussions. i think it is unlikely they would want to destabilize the situation right now. i think the ecb will be reluctant to keep the party going on as much as necessary. next month is the key because there is so much that needs to be done. manus: we have been talking about this for a while. greece is running out of money. and your mind how far can they go without a deal? is it a matter of weeks, months? where is it? >> the rollover is very large. the window is getting narrower and narrower. they need to throw something out during the month of may. june is going to be too late. manus: stay with us. we will do more during t

i think people have started to rethink the ecb and think the ecb is going to start tapering.nk what we heard today from the official was, they might frontload the buying. i think the ecb is sensitive to the fact that the euro is going to strengthen is going to hurt growth ultimately which is why they want to squash this expectation of tapering. i think the market is being driven by low liquidity, technicals. ultimately i think if you look at fundamentals, some repricing was warranted. i think we went a little too far . why do you want to buy u.s. treasuries at this level? priya: i think we have had a lot of pressure from a ton of corporations. corporate issuance, we are running higher in the last two years. -- a lot ofen supply to put pressure on treasuries as well. we will be heading into memorial day, less insurance that less issuance. when we focus on fundamentals, and think it is about the data. we are surprised by the consumers not spending as much as they should. the consumer has a good job market and low oil prices and yet retail sales have been week. i think we will r

draghi is down at the ecb even in portugal. he's going to be talking about unemployment and inflation. the consensus seems to me that europe is getting back on its feet. we saw the pmi numbers. germany was disappointing. the rest of europe is starting to show traction. is the optimism in the market at the moment about europe overdone or underdone? where is the middle ground? jacques: optimism is overdone, i think. if we try and analyze what was driving the recovery of until march, we think the nine months of declining oil prices, that is gone. if that is the true story and we think the data suggests that this might be the case, a peak was reached already in the business cycle in europe. from here on, we are growing but not as fast. second-quarter gdp might be slightly weaker than the first quarter. that's very difficult for those who have acceleration in their forecast from here on, i.e. the ecb which has a non--- a 1.9% gdp forecast. i'm closer to 1% for next year. i think there are dynamics in the system in terms of the 45% i

let's talk about this bloomberg school and bring in ecb -- scoop and bring in the ecb reporter.he ecb is achieving all of this authority and maybe a realization it may have bitten off more than it can consume? guest: what we are seeing is at least a little bit of indigestion and the early phases. let's not forget it is a new institution of the mechanism and the biggest supervisory body for banks in the world. it is overseeing 123 banking groups. doubt 27 trillion euros under management. this is certainly a very significant undertake. -- they have 27 trillion euros under management. all of the decisions have to go through the governing council which is the body which makes monetary policy for the euro area. that is about 6000 decisions a year. that is something taking up a lot of time for -- from policy makers when is be doing something else. guy: that something else is monetary policy a it is not important at the moment. the european economy is not on the forefront. jeff black: right. the 25 members of the governing council have plenty on their plates. one of the things we are h

the ecb has said they will step a bond buying.ans: we have comments from -- saying they recognize the cyclical moves and they want to step up. that sent but the yield down everywhere including all across the eurozone including greece. yields were up and they dropped back down on the news. i have not checked in the last five minutes. yesterday, we saw a remarkable swings in greek debt. 300 basis moves and the 2-year note. this morning, they are down perhaps from the ecb board member and we will follow that. francine? francine: hans nichols. let's go to joseph an award-winning economists and author of "the great divide." thank you for joining us. we have a lot to talk about. greece, how do you deal with greece? they have never been this far apart and the clock is ticking and no one seems willing to give in, who will win or who will lose. joseph stiglitz: there is risk everybody will lose. i look at the kind of reforms they have done and it is very impressive. the macroeconomic reforms and breaking down the deficit and terms of the a

does the ecb have any red lines? >> we are not involved in this let's say, political bargaining process. so we look at the results and then take our conclusions. >> julia is now joining us to discuss the fate of greece. we've seen this movie before. encouraging comments from greek leaders. stocks move higher to find out that greece was overly optimistic on the stage of their negotiations with creditors. >> overly optimistic was a kind way of putting it from the conversations that i had with my sources in brussels. greek spin was one phrase used and we also had wolfgang pouring a lot of cold water on it. the truth is somewhere in between. new progress is being made and talks are continuing but we're not likely expecting to get a deal even by the end of this week so you have to take some of the commentary with a pinch of salt. no wage cuts a hong term solution and developer package. a real win if that's the truth here. >> the time will only tell. as greece navigates, t-bills are the only source of commercial borrowing

then we that the ecb question. something interesting happened this week.ll talk about the impact of what it was. he was worried about a backup in yields. do we have an ecb that is going to come out and look after the market every time yields back up? kevin: the selloff had been underway for some time in government bond markets before they intervened. i think it was significant. they said, we are now concerned by the speed of this. more generally, our ecb view is having crossed the rubicon into the qe program the hurdle for them to deviate from that program is very high. we think they are going to stick with the program they have. they will intervene in these ways when they see developments in markets they are not comfortable with. jonathan: what is -- was it a dangerous game, the first bit of volatility, 4, 5 months into the qe program? kevin: as he put it himself, it wasn't the level that bothered him. it was the speed of the retraction. i think there's a fair amount of bond traders also bothered by the speed of that retraction. we mustn't forget that the

it needs the ecb to continue to do its accommodative monetary policy. helps on the margin, but it is not a silver bullet. mark: jay, we have about 30 seconds left. we started with greece. let's end with greece. what kind of contagion are we looking at in the eurozone? jay: that is a great question, mark. back two or three years ago, we saw a lot of contagion to italy and spain. a lot of people think there are more back stops, and that we have not seen them back up a lot, but we will have to wait and see. if greece leaves the euro zone, it could be dicey, at least for a little bit. mark: jay bryson from wells fargo joining us from charlotte, north carolina, always a pleasure to have you. thank you for your time. jay: thanks, mark. mark: after the break, toys from "frozen" are the gift that keeps on giving, when "bottom line" continues in just a minute. ♪ mark: welcome back to "bottom line." let's get you to some of the top stories we are following. the islamic state is taking credit for the shootings in texas, and they threaten more attacks. two gunman o

later in the year the ecb may turn around and say, they qe works very well.e have got the economic recovery where we wanted. credit spreads have narrowed. we are going to stop qe. they have to manage the exit very carefully indeed because expectations are entrenched that they are going to continue this for the next year and a half. if they actually slow down or announce they are going to exit that process. jonathan: can they push them into the corner and say, i don't think so? >> it depends where they stand. i think the critical aspects are what is happening to the data. italy and france we are seeing better economic data. consideration number two is what is happening to bank lending. what is happening to credit spreads. can they borrow at the same kind of level? they couldn't two years ago. all the factors that suggest qe is working are very much there. the next question i think we are going to be talking about in november and december is how are you going to stop qe. that is going to be a challenge. jonathan: when i look at the exchange rate, things have st

the ecb's role is crucial. if the ecb doesn't see some kind of progress on these reforms they have been battling over, then the ecb could further restrict access to financing for greek banks. francine: market is, what does greece hope to get from the eurogroup meeting? do we know anything about tactics? are they going to be more friendly than they were last time? marcus: well greece is looking for a positive statement. it is worth noting that this is going back compared with previous meetings, including that acrimonious last one in riga. so often, the meetings have been talked about as self-imposed deadlines to be reached. the greeks have been looking for more funding. this time, they are just holding out for recognition of the progress that has been made so far. they are saying an appeal will be closed in may, but we need something from the other side. over the last week we spoke about the improvement in the process and the tone after that reshuffle. from the creditors' side, we have been hearing about this in

olivia: the big story in europe, the ecb front loading speeding up sovereign debt.he euro, the biggest move into the -- two months. said thefficial central bank would buy more european debt sooner than expected. analysts say those should come down what has been a very volatile bond market. stocks higher. two -- two up by point 2%. the idea that the central bank will bring more stimulus sooner, good news for risk assets and equity traders. has been an 20%, it amazing story in european equities. pimm: long-term stocks with a euro-dollar hedge. a look at the top headlines at this hour. we start, tumbling at the start of the year. aprilg starts soaring in to the highest level in more than seven years. the increases 20% over the -- the biggest in 24 years. mortgage rates are near record lows. americans are spending more on the current home. home depot posting profits that beat analyst estimates. the early arrival of warm weather encouraged americans to work on the into -- exteriors of their houses. this was home depot's biggest revenue generator. by theailers being hurt

the greek banks placed with the ecb. elliott: i think what we have here from the european bank is a dilemma. interestingly enough, that is a greek word. i'm sure you knew that, mark. [laughter] mark: if i was around them. elliott: this guy lemma is of dilemma wants to help persuade greece to make more compromises needed to reach a bailout. it doesn't want to push them over the edge. and it doesn't want to stymie the ability to pay the loan. it is dayue after the finance meetings in brussels. the ecb is waiting. caroline: we do have that all-important meeting on monday. what are we encroaching on? elliott: the lead wants to give politics a chance. if there are talks of progress if they are about to make compromises or reach an agreement, the european central bank -- if they seem to be further apart than ever, and the ability to increase the amount of collateral they demand, it is about 23%. the greek banks need to get emergency liquidity assistance. the ecb was even looking at 90%, which would be consistent with those gre

and the ecb in the frame as well. already cap to local governments to pay for pensions and state wages. but the prime minister seems to be coming to a head and it looks like ecb might be the biggest enemy here. zeb: absolutely. he takes a lot of criticism and questions from the creditors. the ecb said it is not satisfied with the progress greece is making. it could type conditions on emergency lending. that is happening wednesday. that would put greece was into default. that is where the story ends, if it ends that way. imf, greece does not want them to see it that way. but moves like that type emergency restrictions -- titan emergency restrictions. it would push it closer to default and that could have been the end of this month. angie: thank you for that. let's check in on markets. a number closing. new zealand is falling have to present down. japan has set for greenery day. no trading in malaysia and thailand some stories tracking for you. profits came in below estimates at just under $3 billion earnings from the t

we will continue to get 60 billion from the ecb every single month. they may look back and say 65 was a good level to get in. guy: it took four years for alan greenspan, will it take four years for janet yellen? guest: maybe less. we need to normalize at some point. you have a rising interest rate environment but it will be slow. slow to 2% and 5%. and the glide path to a higher rate environment slow enough that yields can stay pretty contained. that doesn't feel like it needs to be four years. anna: will markets keep their heads when rates go up? six years of near zero rates and she is suggesting we could see a shark -- sharp jump. will they keep their heads or overreact? guest: they are not very good at keeping our heads. volatility is something we will live with all through this period. we get asked of these stimulative assets. it is an environment we have not seen before. the market causes volatility. we may end up getting used to that kind of volatility. guy: we need to talk about some of the other things going on in the market as well. let's tal

the ecb less likely to strike -- to tighten the screws. the euro group leader spoke to us and said there is a lot of hard work, very little time. >> i only know one timeline which is that the program runs out at the end of june. between now and the end of june we have to find improvement, and -- find an agreement and get the approval of parliament. then there can be disbursement. all of this in six weeks left to go. very tight timelines. tom: guys a development this morning. spanish newspapers reporting the imf is not happy to do a second bailout deal with the euro group. they have made those noises. they told him they are not content with doing another bailout because this comes after the 7.4 billion greece is looking for. they will have to look at another bailout -- possibly 50 billion. the split looking like it is growing. francine: tom mckenzie in brussels. guy: puaaul donovan joins us from ups. we continued to incrementally move a little bit further forward. two step backs, one step forward. a june deadline. are we going to see shifts

the ecb is prepared for more financial volatility in the month and years to come. looking also at a potential exit strategy from that ultra loose monetary policy over the weekend where we had the all important gathering. mario draghi was also saying one has to be super careful in exiting that ultra loose monetary policy stands in order to actually warrant more volatility on the market which then of course could hurt financial players and more and more risk of course is also amassed or gathered in the nonregulated shadow banking sector. so i guess we're heading for more turbulent times. with that seema, back to you. >> seems like factors resulting in elevated volatility in the bond market. you're talking about a repricing of inflation given the rebounding in oil prices. and as you point out central bank activism which has had massive implications. not just on the bond market. currencies as well. want to switch your attention to what's happening in nigeria. you're looking at live pictures where nigeria's new president is being inaugurated. we'll get you more details

look at the ecb and the fed who are dragging the proverbial chain here. times are a bit frustrating that in the federal reserve is not lifting rates there. that is the number one story. and the was in printable story of record on your o -- iron ore does not have the same luster as it did before. all but cemented the move by the central bank. jennifer: another side -- jonathan: another side to the story and property market. a subject close to your heart for you we obsess over london property prices. sydney did dinner parties and the same topic area a lot of people thought they may hold back because of the housing sector. can they pull the trigger now? dan petrie: well they are now being urged to do that. the dinner parties you talk about a you talk about these things. they have barbecues and australia which we call barbecue stoppers. [laughter] dan petrie: same result. popping the cans off a few more beers and getting stuck into the policy details. those areas really in the central bank, you have a situation where the property prices in sydney are going up

>> it's not a question of fighting the ecb. you have to remember the ecb is replacing a lot of the bars in the market. not adding to them and a lot of people talk about this argument that germany's net issuance will be in the future but if they're selling to the ecb but not taking the cash the ecb gives them and investing immediately they may be elsewhere. >> so you're expecting some kind of correction in the european bond market we've seen over the last two months. are you surprised at the speed of that correction. >> i think so. particularly to begin with. we saw it as an elastic band. we did recognize when we called for much higher yields we thought the first part of the move would be technical or off loading on positions which is what happened but the elastic band got stretched further than expected. we put out our call when yields were at 17 basis points. they went down to five before moving up to these levels. >> u.s. and u.k. bonds were included in that official bond market correction. what do you make of where the sprea

a level we haven't seen before the ecb unlaunched quantitative easing. what does this mean for the bond market? investors watching yields rising but the implied volatility we have been seeing which is at a two year high and the story continues with a ten year treasury yield at 2.25% and the ten year german bund at 0.72%. remember the buying spree drove the german bund at an unprecedented low of .075% in april but a very different story given the sell off we have been seeing in the bond market resulting in yields. ticking higher right now 0.73% on the german bund. i wonder if we'll get to 1 or 1.5% for the german bund and what that will mean going forward. >> that's an interesting question. we have moved pretty far so far. let's have a look at european markets and a little bit of repreve today although that hasn't been the case throughout today's trade. yesterday was a weak day for european equities. this particular for the dax up more than a percent after german gdp slightly disappointed. we managed to bounce back but not in any pronounced fashion as you

this is from then, an executive board member of the ecb. it indicates the ecb is sensitive to seasonal patterns in a fixed income market he is telegraphing won the purchases are going to come. it is not going to be on the same time table. stephanie: the fact they are coming means the market can prepare. erik: there has been volatility in the rate market. the 10 year yield backed up in the space of three weeks. the ecb probably prefers stability. stephanie: julie, give us number two. julie: s&p 500 index futures are up. that signals equities are on track to extend the all-time highs they reached yesterday. he goes back to what you are talking about in europe, the idea that the ecb is going to be reactive or proactive when it comes to what it is seeing in seasonal patterns just as european markets are reacting positive to that. erik: i am waiting to see how long it takes for strategist to raise year and targets -- year end targets. they have it at 2350. the lowest is goldman sachs with 2100. stephanie: fundamentals were going to come back in

paul, talk to us about the ecb. how are they likely to act on the emergency liquidity, there discussing -- their discussion? paul: they happen pretty straightforward. officials have stated that they are rules-based, that liquidity assistance is there to replace deposits from greek banks. that was over the uncertainty of greases huger -- of greece's future. you can expect it is quite likely that that will increase once again because the deposits are still outflowing. the key question now is whether the collateral which the bank posted against it needs to be tightened. there is concern that the risks of a greek default as time starts to run out, increase and the existing collateral rules date back to late last year, when everything was looking healthier. very soon as the time to tighten those. caroline: certainly. we have a possible haircut happening when it comes to the collateral. the ecb is discussing that, but what about where we see the actual negotiations? the ecb is being talked about politicized -- is that a r

caroline: wednesday, we have the ecb meeting to decide on emergency liquidity.dates do we have coming up? there seem to be so many payments here and there. what should we be looking for? >> the greek government imposed deadlines. arbitrary that it does not meet at the end. we have this sunday deadline that has passed. now we are talking about a deal until the end of may. as we are running out of cash the cash flow situation cannot be -- we cannot say for sure if it will be the 15th of may for the 15th of june because the cash flow situation is so dire. that is why at the moment, they are looking for a solution before the eurogroup meeting on may 11. not necessarily a solution, but a sign of real progress towards a complete reform package. caroline: the saga continues. thank you very much indeed. manus: some of the top stories on bloomberg this hour. markets are closed here in the united kingdom and in japan. other european markets are open. saudi arabia plans to allow foreigners direct access to its stock market. this is according to a statement on their website

>> some people say don't fight the ecb. that trade might not be over just yet. >> if you have a ten year perspective, but if you are a one year perspective it may be a trading gain that you can make and pocket that. >> do you think there's enough liquidity to send the u.s. ten year yield up to 3% even? >> there's enough liquidity in the market. >> it's a real issue and there's much more volatility in bond markets than we're used to. that's a function of a lack of liquidity in the bond markets absolutely. >> the director of u.k. manager research at morningstar. >> the recent rally has left many investors scratching their head. it's not the time to buy is the message from some analysts. head to cnbc.com for the full story. >> an amtrak train from washington new york with 240 people on board derailed in philadelphia tuesday night. at least five people are dead and several more injured. eyewitnesses say the train which runs through the heavily travelled northeast corridor was going into a turn when coming to a sudden stop. seve

and ecb treat. i'm going to be talking about it throughout the show.pretty much dead flat. dax futures lower by 14 points. manus cranny has got your tuesday morning open. >> thank you for that. we are looking at a slight drop this morning. in paris down 2/10 of 1%.

if they don't pay that back with the ecb continue finding financing to greek banks. if they cut out greek banks they have to somehow nationalize the banks and they take all of that risk on their balance sheets. the other theory is the end of june when they should have signed off to get financing going forward. we simply don't know when the money is going to run out. that's the issue. we don't know how much money they have left. >> we have a little bit of time left perhaps but is this risk nonetheless, priced into markets or is it being overlooked? big move in the euro this morning. is that related to greece? >> part lit but yellen's comments last week the idea that is the u.s. will be tightening interest rates at some point may be the key drive for what we're seeing. greece is obviously an issue but considered a game changer for the euro zone. most view greece as a very small part of a much larger piece and the ecb buying the bonds around the corner. >> i think one thing not confirmed is perhaps the greeks cannot make the payment on june 5th but actually do a balloon

he is suggesting that the negotiations with greece have stalled that may be why the ecb has come outat it has said at this particular time. coincidentally you get a news conference where angela merkel is meeting the french president, francois hollande. where they say they will be meeting the greek prime minister at the leaders' summit thursday/friday in latvia. i think what they're basically say something you've got until the end of the month to do a deal. the indication is they may read the riot act to the greek prime minister. back to you. >> we'll find out more shortly. simon, thanks a lot. >>> how to customize your new apple watch. walt mossberg is here with be a easy guide. >>> and we caught one the star of "unbreakable kimmy schmidt." >> it's neat talking to people who were able to watch the show all in one fell swoop. i think that's very satisfying experience. i think that the viewers want to be in control of what they're watching and this offers that you know opportunity. >> we'll have plenty more from the web. including our interview with the co-founders of tinder later this

von >> making progress here as the head of the ecb refusing to maintain the life support. athens is series about delivering policies made to escape a default. hassure on both sides intensified as the ecb is due to reassess the emergency liquidity line, keeping the greek banking system of float and officials tell us all something to bankers are pushing for stricter terms, it is unlikely ecb policymakers will restrict funding. reset it will pack another hurdle this week with a repayment of $830 million to the imf. the transfer order was put in monday according to two break officials will stop as for other payments, greek finance minister says they may not get that far without help. liquidity issues are terribly urgent. showmi is reportedly throwing its hat into the money market rain. it translates to savings account in chinese. ew service came out with two major tech names. register using your national id in china, link a bank card to the account, set up an account for as little as $.15, and it all works out. the online money market accounts have become very popular these of

they are completing the ecb. is they have no convenience in going out from the eurozone because they have no production. this is the point the program is the mitigation from the other area. people are not able to manage crisis. jonathan: that is the in tesla ceo. you'll hear more about that on the "the pulse." >> it was a wide-ranging interview. he spoke about profit, he doubles profit and he is expecting to continue on that trend. he promised money back to the shareholders. if he is succeeding targets that may have to the increased. he gave me a figure. jonathan: we will bring you that figure on "the pulse." as we had to break, here is what is coming up for the rest of your day u.s. initial jobless claims. mario draghi speaking at a conference in washington dc at 4:00 p.m. u.k. time. the youth u.s. treasury 30 year bond auction at 6:00 p.m. u.k. time. apparently kim kardashian is coming up later in the day on bloomberg tv. this show, bearish kardashian, good luck for the rest of the day. ♪ ' between the golf car

could it be that ecb that raises the stakes? reporter: i will not bore you with the numbers but at the moment, the greek banks have a collateral partner with the ecb that would last them another two months, being able to top ela funding. given the current deposit outflow pace greek angst may only have a month in front of them to be able to get assistance. the problem is there could be a greater deposit outflow acceleration and you may have to impose controls. just to keep things in place. what have we said before about a referendum, mr. tsipras has said we are not opting for elections. we're hearing many greek officials hinting on this that could be the solution. jon: thank you very much for joining us. hans nichols joining us from berlin. i want to get the investor take now. joined by the head of investment at cross bridge capital. we have to talk about it again. last week was key. if you believe some of these reports, tsipras did warn the imf that he wouldn't pay. what is that matter, i look for to a series of payments coming

the ecb official has said the ecb will be speeding up its bond buying program in may and june. the ecb has been buying bonds in the tune of 60 billion euros every month since march in order to speed up the european economy. he says that program will be speeded up in may and june ahead of a little bit of a summer lull in july and august. we do not see the same feel-good factor stateside this hour as we saw in europe. the dow jones is currently holding its head above the flat line, but not my much. the nasdaq and s&p 500 are trading to the downside. this as investors are digesting the latest data coming after the u.s. housing market, housing stocks came in stronger during the month of april then was forecast. it still has not done much for american stocks this session with the nasdaq and s&p 500 trading to the downside. let's take a look at some individual company news in the markets. we are seeing shares and walmart coming under pressure on wall street this session. it comes as the world's biggest retailer reports a small quarterly profit. a pay hike will stop the bottom line. a

i think the ecb will carry on. there's just no signs of that.s you saw some big bounce in the energy price, or a really sharp fall in the euro those are the only things that would cause the ecb to back off. otherwise i think it will be happy for the growth. guy: thank you very much. up next, bank of england minutes, see you in a moment. ♪ guy: welcome back. you're watching "the pulse" live from bloomberg's london headquarters. francine is off today. the interest rate decision 9 mil. the central view is that slack be fully absorbed within a years. inflation weakness likely to be temporary and the decision was finally balanced for two m.p.c. members. pound up a little bit on the back of this one. cable rate 1511. that's where you can see it at the moment. we're joined now by jennifer ryan and melanie baker. good morning to you. >> what is interesting is we have two members saying that the decision is finally balanced for them. there was unanimity. it didn't make sense for anyone to be voting for interest rates until you saw what the outcome was. t

as maria point out they owe the money to the -- they owe the money to the imf and ecb. it is not a systemic problem. and we don't have that. whether they work it out or not, i haflt think they might let greece go. it would probably be a good thing for everybody. but either way we think it is a short lived buying opportunity but not one i would prepare for in a very bearish way. >> fair enough. steve, thank you. steve off with federated. >>> a $55 billion deal in the cable industry. charter communication struck a cash options deal for time warner. it would make the cable company second biggest after h termid tis deal to buy time warner. and shares of tarn and charter higher in trading today. julia boorstin has more. >> charter's acquisition of time warner will build a power house, along with the purchase of bright house networks the company would have 24 million customers. seco to comcast. a month after comcast pulled out the planned acquisition of time warner cable in the favor of pushback from the fcc. >> what the fcc seeking is being developed by this transaction. it

the ecb program pushing yields on bonds into negatives.ots of factors for the insurer to deal with. we will debate that with the cfo later. that is coming up just over an hour from now. stay tuned for that. anna: bonds are tracking a selloff in asia. it is a continuation of the same story. david is in hong kong for us. it is good to see you. david: good morning to all of you. what we basically woke up to in asia was the big jump in terms of 10 year yields. what i have for you here -- it is quite a dramatic scene. australia, south korea and japan. now japanese 10 year jgb's at 45 bits. that is the biggest single day jump in more than two months. australia -- 3% right now for the 10 year yields. we have not been at these levels as far as australia is concerned so for this year. that is the biggest one-day jump in australia going all the way back to december of 2014. a few notes -- it was goldman sachs -- the thinking is the expectation is what the ecb could do, should do. it really propped up valuations across global bond markets. what we ar

mark: and ecb gives emergency cash for greek banks. tempers flare. creditors ahead of the meeting -- ♪ mark: welcome to "countdown." i'm mark barton. >> i'm anna edwards. >> i'm manus cranny. cvs is said to be in advanced talks to buy on me -- omnicare. anna: let's bring you up to speed with what has been happening in the asian markets. we have a look at the chinese manufacturing numbers, which remain sluggish. good morning. it slipped to a 13 month low. what is behind those numbers? >> i think it is worth noting is it is the initial gauge that comes out for the third week of the month. the final hsbc reading -- we got contraction. lower than expectations. another thing to note is it is a private survey. smaller in scope. less companies. it is where the pain is being felt the most. you look at what the shanghai composite has done so far. 4500. this is when the data came out. these levels are more or less. very close to that. let me show you what is happening. people have been following this rally. take a look at this. this site is not spelled out com

it is the ecb review on wednesday that is the key point.if greece does not get any acknowledgment of sound progress, what will the ecb decide? it is a political decision to cut off and restrict the greek access to the liquidity. mark: thank you. thank you tom. manus: a surprise election victory. david cameron's conservative party now has the majority in the house of commons. it is not a very big one. that could be problematic especially when it comes to the age-old problem, europe. anna edwards is in downing street. cameron backbenchers, are they in a strong position? is 15 a reflection of what happened back in the early 1990's with john major. anna: back in 1992, john major had a bigger majority then will be enjoyed by this parliament and david cameron. cameron's majority is just 15. we have to wait and see about the appointment of a speaker and a deputy speaker. many people now are suggesting that the relationship between david cameron and his back enters -- backbenchers could be crucial. how will he keep them on his side so that his poli

the ecb needs to have adequate collateral. if 88 billion is the number, you look at 1,000,000,000-2,000,000,000 in weekly increases. that only gives the greek banks sometime in june-july when they will no longer be able to finance themselves. that is another concern. we will be watching closely what the ecb has to say to this. francine: thank you so much, hans nichols. let's get more with j.p. morgan global asset strategist patrick. great to have you on the program. when you look at greece it seems they are reaching slowly towards chaos. these are two sides that don't seem to be getting closer. >> i think we are going to run out of time. if you look at what analysts have been saying, we've passed so many deadlines. it does seem that over the summer, there are so many repayments. to the imf, the ecb governments in the eurozone. they are really going to run out of time. that is even before talking about the collateral issues that we heard about. francine: does it mean they are going to default? i'm not sure how to play this stor

do you think that's counter intuitive to what we actually get from the ecb? >> so the ecb is adding additional liquidity in the market and we saw the implications of that coming through with the negative yields on sovereign bonds and they're not realistic. that means that people are saying i'll give the central bank 100 jurors rows and get 95 euros back in three years. that doesn't make any sense. the negative yields are evidence of a weakness situation in europe and i think the rebound in yields is the market saying i think europe is doing better and some of these negative yields ought to be unwound. >> so essentially you say the pick up in yields is a positive story. >> correct. the negative yields are a little overshot but the pick up in yields it represents the better day coming for europe and saying europe is coming out of the woods. >> thank you very much catherine. >> you're very welcome. >> i wish you fruitful discussions here. >> thank you. >> i also spoke to another central banking source here on the ground and they were saying the pick up in yields

we don't think the ecb is going to rush in and buy big bonds. we think it is not over for a long time. guy: how much of what is happening is related to the euro, and how much is related to positioning versus other asset classes? stephen: greece is an issue. there has been some minimal progress in the talks between creditors and greece. that has helped support the euro. when the fed did qe, you didn't have these fluctuating tail risk events. there is a risk premium in the euro. that risk premium gets taken out when grexit risks decelerate a little bit. francine: if something happens with greece, a negative event what happens to the other countries? tweeps -- we spoke to the intel a sao paulo ceo. stephen: if you look back to the crisis in the early 1990's, there were countries that were ejected and countries that remained in the erm. short-term interest rates in countries that remained inside, take france for instance short-term interest rates remain high for a protracted period of time even after the crisis subsided. it suggests that there will

right now, the ecb out with news. real news rates move.rendan greeley will touch on that with francine. a great chart for you on your trade deficit. we prepare for walmart earnings later. home depot out earlier. walmart as a proxy for america's retail animal spirit. brendan: yields on the 10 year are up. college macro textbook this is bad for equities. the s&p 500 does not seem to have taken college macro. brian harvard on the hill. you say context on interest rates matters more than the level. brian: rates are low for a reason. tom touched on the first block, we have been seeing unprecedented slow economic growth. that is why rates are low. we have forgotten the equation of investing. economy improves, interest rates go up. that is good. we have reared an entire generation that inks higher rates are bad and lower rates mean good. it is the opposite. that is why 2015 will be a year of volatility. the fed has to act because things are getting better. look at the numbers. we think it will happen. there will be volatility in the market. tom:

the ecb to accelerate qe before the market low. the market seems to like the fact they are going to frontload in may and june. a bit of a turnaround. you listen to those comments. should that make a difference? it's not going to change, is it? >> it's not going to change. it is encouraging to hear. coupled with a weaker euro. it helps european equities as well. it just seems to be noise. the only real beneficiary is the weak euro, which spills into global markets. >> the dax euro got weaker. as an equity investor, are you still just trading the euro when you are overweight european stocks? >> you have to remember the euro is about 11% undervalued versus the dollar. it is really interesting to see what is going on. earnings numbers are looking quite reasonable. this is an ok environment despite high valuations. this looks ok. >> coming up, it is noflation day. we breakdown price stagnation. we will break down at 20 past the hour. vodafone beating revenue estimates. more on why 0.1% growth never felt so good. those stories and more c

in relation to the european bond markets, the ecb is buying two and a half times the net wans of europe bonds. i think the qe trade is a genuine force in the markets. despite that everything can go too far and three weeks ago, german bonds were yielding negative interest rates right out at 6 or 7 years and that was ridiculous, even considering the enormous purchases the ecb is going to take. in my view it's not so much a spike on the up side, it was reversal of a spike on the down side. >> it's not based on the fact that people think that the qe is going to end earlier than expected, it's just the trades have gone too far. >> some people say the problem is europe sold europe had a decent first quarter and therefore the ecb can stop in the next few months. i think that was a very absurd expectation and they do intend to continue qe until at least september 2016 in accordance with their original plans. there's no way they are going to react to one quarter or a couple of months of figures. >> the violent sell-off that we saw in the bond market is the opposite of what central banks given pe

we need more speeches from the ecb.n: if you are offered a ticket to the deutsche bank agm or regal where would you be? guy: i would go for rieger. jonathan: 9:00 a.m. don't miss it, at2:45 p.m., u.s. pmi. it is spread across europe. the backs off -- dax is off. the euro is a little bit higher. good luck for the rest of your day. ♪ guy: shareholder showdown deutsche bank announces the code chief executive is to lead the strategy overhaul on germany's biggest lender. the company's agm is just getting underway. the latest from frankfurt. china's manufacturing output slips to a 13 month low. we have the eurozone pmi data breaking now. you'll will be those numbers in just a moment. francinee: i am in paris and we will be speaking to a lot of ceos and different busine

a bit of handwringing going on that the ecb.h comments coming from the ecb board member seems to have driven the market. he said it in a dinner that hedge fund managers were attending. many people are worrying about how messages are put across on the ecb. andnly the comments, spurred the market. we got germany coming down, even coming down for greece. after that the $400 billion selloff in the bond markets over the past few weeks, suddenly the appetite is coming back because the ecb saying we going to up our purchases of bonds up until the low in the summer holidays when we see many in the continent and europe go on holiday. maybe make him a maybe june you will see more than 60 billion euros being snapped up everything all month. suddenly we see appetites back in the bond market. also appetite seemingly being dwindled in the british pound and the euro. less checking in on the euro. we did see big news against the dollar currently off by 1.5%. things,lip side of there was appetite because of the construction and your housing star

but what that really means is the ecb is they will be more possible with their program. the same time, you have something a little under the radar that has been underreported. president came out and said if we don't hit inflation targets, we are going to go even whether all into this qe or nontraditional monetary policy programs. i think that came together. alix: and just two weeks of people were questioning when the ecb would move away from their easing program. this basically -- all those questions out of the water. this is not even on the table anymore. they are saying we are -- they are all in. inflation has really got low. one thing, european markets moving in the exact opposite directions. guest: i think it is a greece buffer. alix: thank you so much. ♪ alix: welcome back. i'm alix steel. let's take a look at top stories. agreeing their bags were defective and has reached an agreement with u.s. regulators. they will reveal possible causes of the defects. they have agreed to expand the recall to 34 million cars, including 11 manufacturers. their bags have been linke

out which was a little bit softer, but they are gaining some traction, but in addition to that, the ecbhe middle of a massive quantitative easing project, and they just announced it that they are frontloading it. alix: does that count doing a greek risk event? is that why they are doing it? is that a risk for the market short-term? david: i think they are probably doing it because the strength of the dollar recently that will slow down their economy, since it is much more heavily dependent on exports than the u.s. -- i think they are pushing back because they want the euro to weaken a little bit, but you raise a good point. we will find out what is going on with greece. this is going to come to a head very soon he and they apparently do not have the money to meet the next round of payments. with some kind of selloff, would you be a buyer in that? a buyeres, i would be on weakness. i own eurozone stocks now. to a neutralive position on benchmark. i suspect we will get in greece some sort of an extension that leaves a lot of these issues related to pension reform and labor market reform u