now the resurgence in the euro is what traders are talk about today. euro back at 112. the first time in 8 weeks. when you take a look at european markets trading in negative territory. unemployment figures in focus plus the move we're seeing in the currency market. also want to draw your attention to the move in asia particularly in japanese stocks. interestingly enough we were talking about the nikkei trading at a new 15 year high. some traders perhaps though taking the recent rise as a reason to book profits. also investors in japan and asia reacting to that disappointing u.s. gdp number that came in yesterday. we heard from the fed, still no indication as to whether rates will rise in the near term although given the disappointing data coming out of the u.s. many say that tempers the expectation for a rate rise in the near future but let's talk about that. that was one of the big focuses yesterday but more importantly that gdp number of 0.1%. much lower than what the market was expecting. we talk about a slow down in china and emerging markets and how that will temp

air france is down 2% at eight .24 euros -- 8.24 euros. more airstrikes to come on the eighth and ninth and 16th of april. let's see how the tnt deal opens up. jon: let's talk about the deal of the morning. fedex agrees to buy tnt express 48 euros a share, that comes up to 4.4 billion euros in total. caroline hyde has been following the story and talking to a senior executive. let's head straight to the details. caroline: david being is who we spoke to and he was really talking about how they are bringing together two very strong brands that do not actually overlap too much. they are not worried about regulatory approval. you have the united states on one side fedex is very strong in air cargo. on the other side you have the european band, very strong on the ground. they say this is complementary. they are not worried about regulatory approval. this is where it breaks down, eight euros a share is a one third premium. expect shares to jump about 30% on the open. expanding into europe has been a key pillar of growth. he said in 2012 they wan

euro/dollar punching higher. yesterday and we go higher again today. a stronger euro.e in german bonds is what everyone is talking about. the biggest yield. yields go higher again today. up by five basis points. what a move the this bond market yesterday. brent up .2%. also moving higher and heading for the biggest month of gains since 2009. a fascinating market this morning. let's get to stocks on the move with caroline hyde. caroline: i've got one big faller for you. down 15%. a steel maker of alloyed tubing as well. it clearly is showing the pain. 2,000 jobs to go. 75% of those 2,000 will come out of europe. earnings missed in the first quarter. earnings just 53 million euros. estimated to be three times that. the biggest faller on the stoxx 600. another key faller is nokia showing why they want to do that deal with alcatel-lucent. profit missing analyst estimates in their network business. this is all about phone equipment as the mobile companies beef up their infrastructure. these are the companies that supply them. yahweh. revenue rose but profitability is under

overall six euros per share. it will spike back higher to eight euros a share. paired its rallies off after saudi arabia raised prices to asia. bloomberg intelligence philipp joins us. why did oil jump 6% yesterday? what was the reasoning for this sudden jump? philipp: the u.s. stocks are as high as ever and oil has nowhere to go. as long as the u.s. does not start exporting crude oil as safety valves, this will be a problem. wti is a very local brand because there is not a lot of ways to put it into other markets. manus: there are different things. one is that thhe saudis have raised prices to their customers in asia. traders however, last week before the oil boom boosted their long bets by the most in four years. iran in. , on the way with doing -- iran in theory about to make a deal with the rest of the world. help me through the last because none of it adds up. philipp: there is a lot of concern about geopolitical risk. the yemen insurgency bombing yemen. being afraid the shiites will take over and these are promises of saudi arabia -- provinces of saudi ara

so, the euro can go much lower.ey factor of being qe rather than the politics although the politics will continue to dominate. qe will be a very important factor. mark: i looked at our ecfc function on bloomberg and there are five banks that are seeing parity this quarter. why not be brave and go sooner than the end of the year? phyllis: it has been a long hard slog. it reacts to new flow as it comes out but the euro trends in a range and then we get a catalyst it will break out of that range in a very significant manner. it is more of a slow mover we are expecting. it is significant. we have been calling the euro lower at 1.40 and 1.38. it was a brave call for a. of time -- period of time. caroline: when you say a catalyst gets it to move significantly, you are not expecting greece to do that. it will go down to the wire and then kick the can for the don the road? phyllis: i think the key is the situation in greece and its eu partners able, it would not be greece. it tends to be ecb. when mario draghi said we are l

that means the dollar is going down the euro is going up, but a stronger euro is not good for german experts -- you're a exports -- euro exports. anchor: let's stay for a quick look at tuesday's numbers. at the closing bell, the euro stoxx 50 finishing at 3784. on wall street, the dell looking up up by nearly 4%, well below the 18,000 point level. the euro stronger against the dollar. anchor: finnish telecom giant know you appears to be reinventing itself once again. anchor: the company is in talks to buy its french-american rival, alcatel lucent. a merger would create a new global giant in the sector. reporter: on tuesday, the bosses of gnocchi a and alcatel lucent briefed the french president in paris. the french government backs the plans for telecoms and internet giant. >> this merger will allow the creation of a great european champion and also the technology on mobile phones. reporter: he also said there would be no job cuts among the 6000 staff who work for alcatel lucent in france will stop paris had expressed concerns over job cuts. both companies produce a technology for mo

at that moment, what happens to euro-dollar?: my view is that we would see a very substantial drop within a period of 2-3 months. we've just had the reserve data from the imf. what that is showing is capitulation of euro holdings from emerging-market central banks. usually, when the euro folds, you get central banks buying. for the first time ever, we've seen valuation declines matched by constant selling by central banks. there's evidence that central banks are beginning to give up on the euro. if we go into a situation where you are ultimately changing the definition of the single currency, you are going to see reserve managers question their position. i think there's going to be a big shift out of the euro if greece is to depart. francine: talk to me about sterling. we have the first major debate today. the election just 37 days away. now, if you look at the polls, there is an increasingly likely chance that we may get some kind of labor-national party alliance. what would that mean? derek: i think if you look at the ultimate

the face of the euro dictatorship.e popular wish and seeks to impose austerity that the greek people no longer want. confronted with the choice who will win, it's up to the greek government to take up it's responsibilities. >> so this economic approach is more similar to the one of the extreme left party in france. now when it comes to international policy she still has some very controversial position. for instance, she confirmed support to vladimir putin, the russian president. she said on several occasions that he should be a partner of europe and repeated to cnbc that she shares some common values with him and said clearly she disagrees with the sanctions from europe to russia. back to you. >> stefen thank you so much. now, 8 days to go until the u.k. general election and the latest poll puts labour on 35%. one point ahead of the conservatives. another major policy pledge expected from prime minister david cameron. today he will promise a five year tax lock if reelected with no rise in income tax, vat or national i

mark: do you expect the euro to stay week?off lows do you expected to fall further, given the ecb's quantitive easing program is just starting? >> this is not important. we produce and dollars and we get the profit in dollars. there is a slight uplift, but for us it is not that important. this all helps to boost economic growth in europe, and that will benefit. i don't think it is because of the quantitive easing, but we do see some uplift in a few european economies. mark: give us a sense of those european economies where there seems to be enough left. -- to be an uplift. from the area of staffing, what are you telling us about this pick up? which markets, which sectors? >> what you see is that there is always a sort of equivalent to economic growth, but for example, the dutch business where they are growing at 1%, it is now growing at 10%. that is higher. it is a historical pick up. we lost a lot of temps. most companies are still building a flexible buffer given the uncertainty in the market.belgian businesses are doing wel

euro dollar is down by 2/3 of a percent. those are very thin markets and we have two rate decisions today. that one was happening in australia. keeping rates unchanged. we saw the spike in the aussie dollar against the u.s. dollar. 7669. let's check in on markets in asia. >> solid session and the out performer is shanghai up by 2.5% so the market at a fresh seven year high and idea of further easing and stimulus to keep the economy consolidated on the even keel around 7%. we didn't see additional easing or stimulus by the australian central bank. neither did we see fritit from the reserve bank of india. they just paused for breath there. we did see a 25 basis point cut and the cash rate in australia and that's why australian equities retreated. they were knocking on the door at one point on session highs. it came down all the way but still in positive territory. similar story. all in all a positive session although the commentary is very interested about a potential fed rate hike. he doesn't think it's going to be a big prob

the euro dollar parity. australia and all the way down to td securities they are forecasting the exchange rate will be at parity in the third quarter. with look at the fourth quarter and the media forecast. the bar that is the tallest is $1.05. the number of houses who believe we will see parity have increased again. who is the outlier? you guessed it. these bars are interesting and they tell us that there is a lot for barclays and the bank of australia. all of these forecast that the euro will reach parity against the dollar in the fourth quarter. a fascinating new chart coming back. we will come back to it. when we say the euro will not reach parity if you dig deeper you can see a number of houses who will have parity in 2015. manus: time for some of the bloomberg top stories before we go. a site on mobile's this week. mobile services in all languages worldwide. the frozen food maker behind fish fingers is acquired with a 2.6 million dollars deal. the deal, which could be announced as early as monday in lo

the euro. highly likely that there will be capital controls. all of that capital fright -- flight from the banking sector. guy: you have parallel currency and currency controls. you have to question at which point you are still a member of the eurozone? james: you don't say, we are going to have another currency. here in london we don't really understand the strength of the europeans in the single currency to the nation. guy: all i hear from berlin is that the germans think that letting greece go would not be a problem. james: the emotional and political problem for europe is if it is going to start expelling members. i think, equally, if greece leaves it is clearly going to have to have a restructuring of its debt position, for which i mean in terms of the default. what happens to the greek economy? is it going to get access to fresh lending? it is fascinating to me that china lends greece 100 milli -- that china lends greece money last week. i would absolutely expect greece to go back to mosc

it is the and with in the euro that causes the problems. -- within -- it is being wi thin the euro the cause the problems. they need a major international investor come in and national bodies to come in. it may be the ecb that does the lending to greece outside the system. it is in european interest to have stability with greece. the question is, it is this good for greece at the moment? jon: it will be costly for the imf. >> it could be costly. what you want is the greek economy growing again and able to start to repay some of the debt. maybe small amounts of the at. it is very difficult to see a way through for greece inside the system. it is the wrong monetary umbrella for greece. jon: when you restructure the debt, the all is to do it once and never again. clearly, the restructuring several years ago was not a good enough. >> you have to go way back and say, was it sensible to combined economies and put them under a single monetary umbrella? what we saw it is a massive debt inch because of the monetary policy determined in northern europe. that is not going to change. it is not goi

three days later, and other billion euros. greece was able to raise more than a billion euros from a bond sale on wednesday. primarily to domestic buyers. that is not nearly enough to meet its immediate obligations. >> although greece has made its payment to the imf, it faces a cash shortage. there is conrad weighing in on the greek situation. 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 d

there be triggering the euro era debt cries.opean central bank has doubled emergency funding for greek banks. the move comes ahead of a meeting today between prime minister siprus and angela merkel and that's on the sidelines of european union immigration summit. we are in berlin with the story. hans, what does this new limit, this new extension tell us about the outflows from the greek banks? hans: in general, this extension of the e.o.a. is supposed to match the outflows. the increase was 1.5 billion. that's from last week. they're all the way up to 75.5 billion euros. for emergency liquidity assistance. that's the ceiling. so you work backward and have that big increase back in early february and mid february, from 60 billion to 65 billion the back of the envelope calculation suggests that there have been 15 billion in outflows. they like to keep a three billion ceiling just in case there's some sort of event that would trigger a crisis. so they have about a three billion buffer zone. here's the latest and perhaps why the mar

euro-dollar down by 0.4%.nt to talk about these markets, i'm on twitter and you can follow me there. ♪ guy: germany's business blues. will will bring you the eurozone manufacturing data next. francine: tsipras on the sidelines of a european immigration summit. guy: and, it could be the biggest libor fine yet. deutsche bank may pay two point -- $2 billion to settle a probe with the u.s. and u.k. welcome to "the pulse." we are here in london.

caroline: we will be looking at the ecb's 1.1 trillion euro bond buying plan. mark: stocks are headed for the biggest drop in weeks after gdp growth output investment, and retail data in china also load. -- all slowed. yvonne man is in hong kong with the details. where are we seeing weaknesses and strengths right now? yvonne: the weaknesses are definitely coming in line when we talk about retail sales and the factory sector. the australian dollar also slid in reaction to some of this data coming in from china. the first quarter gdp was bang on target at 7% for the first quarter. that is in line with economists and what the chinese government was hoping for.. no newsflash there but that disappointing data you pointed out there are coming out below expectations. factory output for march was at 5.6% the lowest since november of 2008. economists were estimating a 10% growth they're previously. urban investment also came in at 13.5%. retail sales were also a big mess, their slowest pace since 2006, coming in at 10.2% with estimates at 10.9%. the slowdown does make t

will the euro take it in its stride? >> yes we don't think this is driving the euro much.eurozone qe, and for the euro dollar the state of the u.s. economy are key factors. having said that, what we will look at is the meeting on may 11. ultimately, we think a deal is done. i think the market is taking it into stride. it is assuming there won't the a grexit. caroline: what about potential money flows coming into eurozone assets? we're hearing there is a sudden rush for european equities. is that going to keep a trough on the euro? we're not going to see the euro coutu parity because of a surge in demand for european equity? >> this is a good point. this is consistent with countries undertaking quantitative easing. the other thing is japan. there has been a strong demand for japanese stocks. however, the move in the opposite direction on the debt side is driving the euro. because of qe, you have low interest rates, club -- classic scenario for funding currency. we would say the best funding currencies are the yen and the euro because of qe. you are absolutely right to highl

better to visit the euro is that last year's trade?uest: what is the thing interesting about the way in which the currency moves or involved is is it has been very fast, very quick. and i think what carried us up to this point has been a deviation in expectations about rate. at improving conditions in the u.s. and in europe and that has driven it up until now. i think sort of that against the euro from here and to really by conversely that against a strong during the -- dollar very heavily. more structural factors if the u.s. is becoming more independent from an energy perspective and basically going to be exporting less of the world's resolve does reserve currency? and what it means for the success of china? guy: nothing to do with europe? paras anand: exactly. it is a zero-sum game. you have to look at one of the most powerful elements. to sit here today there are signs the european rail economy is recovering and a stabilizing and quantitative easing that could've the perspective, an interesting perspective that easing ends earlier t

euro yen is under pressure and the euro is skating on ice at the moment.e very crucial days for greece negotiations. >> mr. draghi over the weekend said it was pointless to short the euro. do you agree? >> one of the most dominant themes in investors minds has been this idea of policy divergence and what that means for capital flow. we're starting to see the reverse. is we're seeing the impact on negative bond yields. >>> i'm so glad you brought up negative yielding bonds. it's one of my favorite topics. many say that this is due to the desperation for yield but many say it's actually a bet on the currency. if you are buying negative yielding bonds, you are expecting the euro to appreciate in the coming months. >> it's really the fact that european -- foreign central banks are more sensitive to negative yielding bonds. we estimate on a monthly basis currency unhedged that we see about 10 boil of euros selling by foreign investors who are selling their wonds back to the ecb and moving back into high yelled assets. >> what does it in parity with the dollar.

weak euro. weak euro and once more. olivia: how about this call from morgan stanley pulling for the parity. 98 cents against the euro which the end of 2015. that means the poster woman has brought it forward to december of 2015. tom: certainly this is the market color in the currency markets. the hit must paper showing decidedly risk on with the new dash of euro weakness. politics leading the way over the weekend. the senator from new york secretary of state runs again. hillary clinton is the clear front-runner for the democrats but pin search of a tphunew tone and rationale. medical hreupb melinda melinda, i want to take you back to your work at the "dallas morning news" a few years ago and how does secretary clinton win texas? away from iowa how does she attack texas? melinda: i don't think that state is going blue any time soon. i don't see that. but she has a lot of other states that are quite winnable we are hearing her described as the presumptive nominee business -- nominee which is both an asset and liability. 7

it also posted acid devaluation of working billion euros. -- posted asset devaluation of 14 billion euroson wednesday former executive was sentenced to seven years in prison for his role in the scandal. matt: we will go to the markets where european stocks did not have a good day. at the frankfurt stock exchange -- reporter: it is not always what you get that what you were expecting to get. the consumer climate index and the german purchasing managers index were good, but not as good as expected, dragging markets down. we saw a slight decline in france. this shows us the economy in the eurozone may not be doing as well as we all think. the other big headline was deutsche bank, germany's best-known financial institution will have to pay $2.5 billion to u.k. and u.s. authorities after being accused of manipulating interest rates. this was good for the deutsche bank stock, which was one of the best performers here. it was a bad day for the market so the eyes are turning to the u.s.. matt: here come the market the numbers in full, starting in frankfurt. the dax did not have a good day. down m

euro weakness. down goes the euro. will we see a reduction? we are seeing weaker currencies first of the dollar. aussie dollar trading lower. the central-bank comments saying cuts could remain. central-bank divergence. that's what we're seeing. the equity markets let's check in on how steps are performed. credit suisse's of 0.3%. brady dougan was manus cranny's last interview. his last set of earnings. he went out on a high. trading approved especially in the bond market a fixed income. we are starting to see improvement. they are cutting their cost cutting targets. after regulatory charges so a bit of holding off in the surge of the stop. you will be speaking to the chief executive. third quarter sales. in dollar terms, 14%. a beat. the chip designer, go look to the new iphones at samsung, more bang for their buck. this quarter could see a calendar shakeup. british foods is down almost 4.5%. i painted the outlier. british foods going to prime core, they are saying sales in operating costs are down slightly and it will modestly decline. harold

euro-dollar, weaker euro. we are down by 0.5%.t briefly the five-year french bond yield dropping into negative territory. guy doesn't care anymore. do you care? tell me. i'm on twitter. good luck the rest of your day. we will do it all again on monday. ♪ guy: premium products. samsung and apple launch high-end devices targeting the luxury market. deutsche is close to a $1.5 billion settlement on libor while hsbc must pay a $1 billion settlement over a french tax probe. greek deal insight. they will strike an agreement within the next two weeks. we will bring you our exclusive interview. good morning. welcome.

had been estimated. 509 million euros. a lot of this is getting a boost from foreign currency. the weakening of the euro -- this is a company that gets about 48% of its sales. the united states stronger dollar getting some of that. they are getting a stronger currency update. they say they see non- ifrs software with 11 percentage points. they have raised their own target because of this tailwind they are getting from foreign currencies earlier this year. it is a company undergoing a big shift, a shift to cloud computing subscription which you pay overtime. they used to get upfront license fees that you got to install software on computers, but now everyone wants to be able to access their software anywhere, on the mobile, on their tablet. to keep up with salesforce, it is about improving the club. the cloud had been growing in line. leo only clout amongst these sober raise is we have operating margins down a little bit, 22.5%. stay tuned to "countdown." we will get a reaction from the chief executive in an exclusive inter

the market is short of euros.markets every balanced in terms of central banks, what is the debate gekko -- what is the debate? geoffrey: so many clients have asked us that if the market is too short on euros, but we put out the valuation argument saying that the euro is probably too cheap right now. that is a force as well. the second question that clients will ask is if the ecb will and qe early. i think they are committed to this and their outlook is predicated on seeing out this program. greece could throw some spanners into the works. manus: we will ask you a little bit later what you will be looking out for. ♪ ♪ caroline: welcome back and still with us is the senior fx strategist at ubs. we have had a big week in terms of the eurozone and we have a ecb meeting tomorrow basically expecting nothing more to happen in terms of interest rate cuts. what are we going to get from mario draghi? geoffrey: one big part of the central bank austria's is to extend a positive message. -- central-bank's role is to extend a p

the weak euro actually helps increase the imbalances in the euro area.ways a pleasure to speak with you. thank you for your time, marcel fracture. let me bring you some of the other headlines we need to pay attention to. iran's supreme leader is putting a roadblock in the nuclear negotiations. he says economic sanctions on his country must be lifted as soon as an accord is signed. and iran's military facilities will remain off-limits. those assertions contradict western descriptions of the framework announced last week in switzerland. one of europe's biggest private equity firms is said to be preparing an ipo. an ipo would give it access to permanent capital. the legendary australian cricket captain and commentator has died. he passed away peacefully in his sleep. australian minister tony abbott told reporters the nation had lost an icon. benaud's family has been offered a state funeral. coming up, he's being called -- [indiscernible] our behind the scenes look at his shoes after the break. ♪ guy: welcome back. giuseppe is a shoe designer for superstars.

euro swiss, the momentum here has been for the euro to decline and the swiss to continue a little bitr. that is proving a heck of a challenge. we have the momentum move there. are we beginning to restart the down slide there? on that trade? we keep an eye on the agm today. i'm pretty sure there will be a web stream on that. mark, caroline? anna: let's have a check on some other stories. the nasdaq close at a record high. gains in ebay beat estimates for the first quarter results. it did manage to push this forward. we see that gains extended and beat earning estimates after hours. previously, it was held by lehman brothers. it is valued at around 36 billion. the former cia director, david petraeus, was sentenced to two years probation and ordered to pay a $100,000 fine for giving information to his biographer and mistress. more on that story later. mark: finance ministers met in rega today. for look ahead, we are joined by the chief political global analyst. the new term to describe greece citigroup pointed in 2012, the new term you have coined is grimbo. greece in limbo, explain what

it's all the euro system. mark: what's the endgame?sh 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. >> naturally apple and samsung

the weaker euro would increase the imbalances in the euro area which are really at the heart of this problem. >> but the market is focused on the positive benefit or of the weaker euro helping exports. >> that works up to a point and that's what is being wished for but sometimes reality will have to come back and take over again. we're seeing a bubble in bond markets and the beginning of a bubble in equity markets but that's not what the euro is supposed to be about. the euro is supposed to be about long-term stable money so you know he where you are and we're in a very awkward situation where the market is also being drugged by cheap money and i do ask myself how long this will go on for. mind you, i have been asking myself that for about two years and it may go on for a bit longer but it will all come to a sticky end. >> david one last month, you write the greek debt approach that will increase german government bonds. what exactly do you mean by that? >> basically they're having to scour the world to buy up the german bonds. the domestic holders don't want to sell them. most peopl

a quick check on the euro. euro-dollar, where are we? there we go. one euro buying $1.07.risk back on the table. when did it leave? the germany finance minister will present the economic forecast. the ecb will have to discuss emergency liquidity assistance. the highlights next. ♪ jon: welcome back 49 minutes into the trading session. equity markets are pushing higher. the greek three year yield pushing higher by a five basis points. i say teeny tiny because we have seen it move 200 basis points in a single morning. the yield is 29.63%. these highs we have not seen since 2012 when grexit was really on the table. it is still on the table now and a lot of people are discussing it. greece may have bought six weeks of time but today the european central bank needs to discuss restricting emergency liquidity assistance. hans, i was looking at the agenda for germany, what a big day. the ecb meeting. the economy minister presenting the spring economic forecast. what should i look for? hans: they are related. if there does appear to be lower economic growth than expected that will i

the euro is no different. the euro 1.1195 for much of the morning. month of gains for the euro since june of last year. a lot of reversals this week. back to you. guy: it is a crazy market. can't figure out what is going on. fairly big market moves. francine: central banks in focus. the fed left open the possibility of raising interest rates in the second half of this year. the central bank of japan maintained the status quo. guy: brazil's central bank boosted the central interest rates for the fifth time. the decision from the russian central-bank is due out a little bit later on. let's get back to our guest, who was in the hot seat right now. let's ask you out twitter question of the day. will the fed raise rates this year? marcel: my answer is yes, it will, they will postpone it. fourth quarter, at the end of the year, we see the first rise, that is my guess. managing monetary policy is incredibly difficult. the risk is a lot of volatility and uncertainty in the financial markets. francine: they hike rates because they want to give a signal to the

let's check on euro-dollar. it has been disinflation so far. euro/dollar 1.0826.arde warned that she would not let greece miss a debt payment. >> the new reality will be new mediocre if governments and central banks do not address the risk we have. the new reality could look a lot better both today and tomorrow if they address those risks. francine: that was christine lagarde talking about the outlook for the world economy. she spoke about that, about emerging markets, about federal reserve's. she was also speaking about payments greece owes the imf next month. the country is running out of cash as a remains locked in talks with its creditors. that is something we have been talking about for the last couple of weeks. it seems that the markets have really caught on and are starting to feel some jitters. on the bailout talks, the greek finance minister was adamant that he would be willing to compromise. >> we will compromise we will compromise, and we will compromise in order to come to a speedy agreement but we are not going to end up being compromised. francine: h

the french defense ministry values the deal at 6.3 billion euros. the agreement includes training for 36 qatari pilots and 100 technicians. francois hollande will travel to doha to sign paperwork. earlier this year's, france sold 24 jets to egypt and 36 to india. the deals included a certain amount of training because the rafale is complicated and requires specific know-how. introduced in 2001 the rafale is made by dassault aviation and is fitted with engines by a french firm. it is used in a growing number of militaries. deals are pending with the uae and malaysia. now, the euro zone has said unemployment levels held steady at 11.3% in the month of march. that is a little over 18 million people across the single currency bloc, but higher than expected. economists had protected a decreased 11.2%. the eurozone ended months of deflation with a flat 0%> prices may soon start to in ch up seen as a positive sign for the health of the economy. that has led to a muted session on the markets. major indices in the green ahead of a long weekend. not very much

another five report in euros. how much of an impact will the ftse 100 have based on currency head winds given the exposure overseas. >> it's an interesting one. as much as we expect to see strong quarter earnings in europe because of the weaker euro and head winds in the state in terms of the strong dollar, you have a bit of both. it depends where the companies are trading. sterling has been strong against the euro and not so strong against the dollar. a lot of those companies are u.s. facing. >> a pretty standing figure here too, you talk about the opec decision to keep oil production despite the growing demand that it's wiped about 80 billion pounds off the oil and gas sector on the ftse. >> yes, that's right. we've seen that echoed in the mayors majors. both bp and shell have had to say we will maintain and protect the dividend and on the other side of the coin that's been a boost. almost a tax cut for the consumer. >> is it too early to get back into some of these oil and gas companies? many of them have been

the euro is shrugging off what is happening. it is euro stocks as well.n 2012, or fro stress in greece were going in the same way. they were both exploding. right now, the three major differences. first of all, you have the biggest junket of greece's debt being helped by the market. secondly, you have ecb's qe. you have a very determined draghi. thirdly, data out of the eurozone is surprisingly on the upside. jon: the bar is so low. do you think things will improve for the rest of the year? >> let me say the following -- i know a lot of people would know that. if you look at manufacturing surveys, it is the direction you care about. it is worth pointing out, the eurozone manufacturing is higher than the u.s. is right now. my whole argument has been eurozone responds with a bigger lag to low oil prices. what we are seeing is an increase in confidence, because of higher consumer firepower. jon: what we are also seeing as a reaction to the ecb's qe is ridiculously low bond deals. i was sitting down with my producer and we looked at the german one year. last

francine: yes, on the euro, you asked about the euro.he interview, and you really quizzed him. it was also very funny, so make sure you check it out on bloomberg com. what did he say about the euro? stephanie: do you think the euro could get into the 80's? take a look. stan: there are a number of things that point there. number one that would be about the average move in a currency when they get into a big trend. i can't quite remember, but i think it's 55% or 60%, and that would target that. number two when people kind of look astounded when you say it could go to 80, it was an 80 in 2000. just roll back in your mind where we were in 2000, perception of europe versus the perception of the united states. do you think the united states is stronger or weaker relative to europe than it was in 2000? stephanie: i do hope you will join me throughout the day. we're going to air my entire sitdown with stan. he's quite positive on europe. he likes china. it's here in the u.s., the fed policy has him so concerned, he doesn't want rates raised in j

we have to look at the euro because mexico is selling the first 100 years government note in euros.adline in my brain exploded. what is the strategy here? are they on the wrong side of the straight -- on the wrong side of the trade? guest: we have seen plenty of episodes in the past where latin american economies issue debt in a currency that strengthened and it was very difficult to repay the debt. we saw a repeat in mexico in 1994. the outlook for europe is not so great this year and maybe still weak cheer but over a 100 year horizon, certainly they are going to get back on track and this means a stronger euro relative to the dollar, relative to the peso. the timing is interesting. alix: what do you think when you look at a long-term strategy like this? guest: it's interesting because there have been u.s. corporate issuers who issued in euros. if someone sell they 100 year bond, they are not thinking about 100 year currency exposure. at guggenheim, we have been euro bears for quite a while. we think the euro is likely to go to parity and likely under just as a process of the econo

so we continued lower in euro dollar trade. last week if my memory serves me correctly we hit a level of 104 and something something. so we're still a ways off from the 104 level and we're seeing fluctuates fluctuates. that could be interesting heading into the weekend. oil markets, we've seen some stabilization in oil. brent in the region of $56 barrel. wti at $50 barrel. uncertainly surrounding this iranian nuclear program. more fed speak later today among others. jeffrey lacquer at 8:45 a.m. u.s. time. that will be something to watch out for as well. >> yeah. let's turn our attention to the big story today. the apple watch is finally here. preorders are being taken today at select apple stores and high end department shops around the world and our very own seema mody is among the crowds getting a firsthand look at the device. >> apple making its push into the luxury market unveiling it's apple watch at a high end department store here in the heart of london. we're at the place where you can tryon the apple watch. there's thr

this meant a spending limit of x hundred 60,000 euros. -- 660,000. following the resignation of the party leader, the interim leader tried the party. now saying it became a problem and prosecutor opened up preliminary investigation. upon checking over the party leadership, he will pay off the party debt. he may have possibly put an end to the affair. >> a french fashion being honored in paris. 300 pieces from a career standing nearly 40 years will be on sale. among them, the brawl died -- designed for madonna. >> my -- manikins that seem to follow you with their eyes. organized for as much a retrospective as creation in its own way. >> these are things that are important to me like working on skin, strong women. the sexy women as well. i tried to put all of these elements together. >> this for the first time introduces elements and adolescents. the kona grill brawbra warned by madonna and her 1990 world tour. >> she wore black feathers, and she gave beauty advice to her clients. i was nine or 10 years old when i drew them after, at least the way they

a weaker euro story, we are off by one third of 1%. see the move in greek government bond yields. the overall yield has some volatility to come. greece may well have paid the imf but on april 14 they have a rollout with 1.4 billion euros of treasury bills and april 17 they have to roll out one billion and on the 20 4th avenue a meeting with their creditors and we know how those usually go. we are less than a month away from the election and bloomberg politics will host the first of three special debates. first we will tackle -- guy johnson, you can be a busy man this morning. guy: it could be a very interesting debate. where does the u.k. relationship with europe ultimately lie? the general public seem to have swung a little bit. we used to have a majority who said they wanted to leave and now only 35% would like that to happen. the referendum could become a fact after this election and it is a key debate for business and we will find out where the truth ultimately lie. jon: going forward at the moment it is plain out domestically, but

greece owes the imf. 70 million euros are due on may 12th.e bailout extension expires on june 30th. there are fears that greece could default. >> there will be a deal. even the institutions acknowledge that. this does not necessarily mean that there will be a solution at the eurogroup on friday. the eurogroup makes significance t decisions. >> greece made a scramble to hand over spare money. athens needs to find well over one billion euros to meet this month's wage and pension bills. anchor: some bad news for russia. the eu has accused russia upon gas prom -- russia's gazprom of abusing its position. >> the complaint is centered on the company's actions in a number of areas. preventing the flow of gas between eu countries. charging unfair prices. demanding control of pipelines. the company says that the eu claims are unfounded. it has 12 weeks to formally react to the charges. >> it concerned a different countries -- eight different countries. they are prominent in all of these markets. in some of these markets, they are the gas under -- vend

weaker euro in the fx market off by .5%. euro to 1.0692. forefront, a weaker euro. we are approaching an endgame. feels like groundhog day. the screws are starting to turn. guy: slowly but surely. thank you very much indeed. francine: getting some breaking news out of china. this comes on the heels of kaisa , we were bringing you that a while ago. the first china state for -- for them to default on shore. -- the first china state firm to default on shore. it will continue to raise payment funds by various liens, including asset disposal. it is interesting to see whether the government actually supports these defaults to give an message to the wider market. we will find out more and bring you the latest in the next couple minutes. guy: particular for a state run firm. more signs of unease over greece . the ecb selling measures to wind down emergency liquidity assistance it has been providing to keep greek banks afloat. providing more haircuts, i.e. the repo operation. the ela could be reined in. here to take a look at greece's plight is dani

the lending limit has risen to 75.7 billion euros up by 1.5 billion euros from last week banking sources told cnbc. this comes as greece tries to haerm hammer out a debt deal. still with us is the chief european economist. expectations for the meeting are very low. no one thinks the two sides can find a debt deal. time is running out. do you think default by greece is now inevitable? >> no. it's not inevitable but the probability has risen because of the lack of time to come to a technical agreement. my view is the point where greece risks running out of money is june if not the july the latest. so there has to be a deal by the end of may. so then european parliaments will have to ratify the deal for example, in germany. so there is a need for some time before the money can be dispersed. >> right now what we're seeing is the central government in athens is trying to round up the cash from municipalities and it's seeing a lot of backlash and if you look at the popularity numbers they have seen quite a big decline from last month. i believe they're around 45% now. do you think that with in

the euro is a little bit weaker. equities are higher. a weaker euro.t, things got interesting. the spread is starting to low out just a little bit. german yields go lower. the 10 year yield in germany is 0.07%. we could go beyond that. we could go to negative rates. just imagine that. that is quite remarkable stuff in the bond market. the yield on the greek 10 year is 12 when i percent. the politics come to the forefront now. we could be heading to snap elections. it's not really about greece. it's about the chinese rate cap. guy: thanks very much. he is the chief economist at bloomberg intelligence. , why are we getting what we are getting? guest: there are a couple of factors at work or in china means funds leaving the financial system. it offsets those capital flows. the second factor, headline gdp. if you dig down a little bit the need surface, real estate is weak and exports are weak. there are concerns that exports will continue to deteriorate. francine: what's the impact you are expecting? can you put that in contacts with the saw on right eight

of 200 million euros and almost 800 million euros. is due to pay almost 200 million euros of interest on privately held bonds. this is a crucial period for greece and greek market indicators are flashing red. caroline: mark thank you. that is how the markets are responding to the greek situation. greece is ever more isolated. christine lagarde warned she would not let them skip a debt payment to the learned and outlined other risks to global growth and what she called the new mediocre. >> two options, tom. the new reality could be the new mediocre. if policy makers, finance ministers and governor s of central banks do not actually address the risk that we have on the horizon it could look a lot better both today and tomorrow if they address those risks. let me explain what i mean by today and tomorrow. today we are seeing recovery coming along, forecast 3.5% this year. 3.8% next year. but it is not strong enough. and it is very uneven. you mentioned brazil. china, you could have mentioned russia being in negative territory as well. ad

according to the website, his account contained 2.2 million euros, including 1.7 million euros in goldp1ut8ú÷p÷ . nonviolence. reconciliation. idealistic notions or a reality that may just be within our grasp if we approach conflict with a new perspective? i'm mike walter in los angeles. let's take it full frame. ♪ mention forest whitaker's name an

state in the euro. -- stay in the euro. if the plan is to keep greece in the eurozone, we will provide support. exit would provide a catastrophe. his messages, keep talking to your creditors and abide by the agreement. give them specifics. we do have a 26 page document. it is pretty specific and a lot of areas. this will give everyone to look at what the numbers are. crucially, what the growth projections are. you have seen so much money come out of the banks it is difficult to see how they can grow this year. caroline: greek costs are edging up. hans nichols in berlin. thank you. mark: europe's longest-serving leader is often called the last remaining dictator. he is in belarus. he is preparing for an election that could see him retain power for five feet year -- five yours . he sat down with ryan chilcote. ryan asked him how his fifth campaign will be different from the ones in the past given what is going on in crimea. >> everyone thinks that crimea and ukraine is a bluff. ryan the opposition to use you says crimea is li

this affects people his assets are worth more than 1.3 million euros. does this mean people are getting richer or more are telling the tax authorities about their assets? >> here's one of friends last business tax -- here's one of france's busiest tax offices. it handles the wealth tax, 300,000 pay it. new cases are arriving. >> this file we received is important. >> the wealth tax is generating more money. in 2013, the rich pay 4.4 billion euros. they are projected to pay 5.6 billion this year. the criteria has not changed. all those who own assets worth more than 1.3 million euros have to pay. more people have declared their fortune. perhaps due to the recent -- 14 billion euros have been transported to france often from switzerland. the richest taxpayers live in paris, a town in the north, and on the island of martinique. france is one of the rarer countries to apply a wealth tax. those against it say it is not profitable. it generates little money, about 1% of all taxes. >> a look at other top business stories. diageo sees a surprise fall in sales i

goes inside the euro bloc.m that is very small. his germany a good pick? adam: morgan stanley's strategist has been optimistic on european equities. a lot of the move so far has been in local currency, as we talked about. you have to hedged if you are a u.s. investor. i see the argument, six months timeframe that they continue to do well, that's his view. you have quantitative easing maybe upside earnings expectations. as a u.s. investor, the only thing i would point out is come i think the u.s. is europe if you take all the good companies. francine: great companies that may be overvalued? adam: we have areas that just don't exist -- the wolf rate in the west, you can find pockets of growth that look more attractive. francine: and they are not overvalued? adam: we are not recommending tech right now. the issue was on margins, not growth. the west should trade at a premium to europe because it has superior business models in many areas. brendan: you telegraphed the punch was coming. adam: my guys have had heard