francine: i'm francine lacqua. this is "the pulse."g breaking news in terms of costs from the eu. raising 2015 euro area gdp forecast to 1.3%. we were expecting a 1.1% increase. but consumer prices will fall 0.1% in 2015. guy: we are getting a sense the commission believes we are going to see growth in all countries. francine: including greece. guy: that probably is an open question. francine: especially with cash crash in greece. the eu commission saying greek gdp should grow 2.5%. they are saying there is more uncertainty surrounding these forecasts. guy: the best growth forecasts since 2007. francine: great growth prospects but very uncertain. this winter, economic forecasts. let's get straight to our bloomberg view columnist to go through the projections. there is a caveat. the world is better, growth is better, 1.3%. not that bad. there is so much more uncertainty. mark: that's got to be the understatement of the year. given the situation the years and find it in 1.3% versus 1.1%, that is good. they are forecasting deflation. why

francine: how long?would say they have waited, they are more nervous but they are seeking to do a rate rise in june randall kroszner. -- engine. -- in june. randall kroszner: it is data dependent. it is going to depend what happens in ukraine, greece what the numbers are in the u.s.. it seems that september it would be a more natural time to do this. it is going to be dependent on the data. francine: the bank of england looks pretty lonely. if you leave the fed aside. do they have to wait for the fed to go first to raise interest rates? randall kroszner: they're going to be looking at the domestic situation here and the impact on the sterling. more rapid movement here is likely to have a bigger impact on the exchange rate. the u.k. is a very open economy trade is a large percentage of total gdp. in the u.s., we are a large trading partner because our economy is so big it is less important for the overall economy. there is less of a focus on the exchange rate. francine: i've heard analysts saying janet ye

francine: the u.s. is still in favor of providing weapons the people on the ground in ukraine to help if the situation doesn't get better very soon. would you be completely opposed to that? >> well, we are not very positive as far as that concerns -- as far as that is concerned. we think sanctions are better. at the moment, the low price of gas is really against russia very much. the russian budget is based on about $100 per barrel of crude oil and at the moment it is almost half. the russian budget is going to be in trouble very soon. all the other sanctions which we have imposed are pretty tough but we could even do it worse. then russia is really in deep trouble. that is much better, because i don't think we have a possibility of solving that problem in a military way. francine: thank you so much, michael fuchs. coming up airbus stock takes off this morning as the company reports a 15% gain in annual profits. we will speak to the company's chief marketing strategy officer next. plus, all data equal.

francine: i am francine lacqua. this is "the pulse." greece looking like it may make a play for time. the country is hurtling towards a cash crunch. it might ask for an extension of its loan agreement, not the bailout. it stands firm on the renegotiation of the bailout due to expire at the end of the month. francine: we are joined from brussels by hans nichols. go through the distinction between asking for the extension of a loan agreement instead of asking for an extension of the bailout. hans: an extension of the bailout would mean greece would have to complete it. they would have to roll back some of the reforms the tsipras government is talking about in athens. what is crucial for the germans particularly wolfgang schaeuble is that they completely bailout and then you can talk about something the on deck, a bridge loan or an extension. athens made clear that they see a difference between a loan extension and bailout completion. if they see a difference, clearly jeremy does. the finance -- clearly germany does. as this was breaking,

francine: greece. it just finished so there were all these ongoing situations with the negotiations in greece and that huge deal with russia. that would kind of explain it. guy: 113.28 is where the currency is trading. the u.s. dollar down by about 0.5%. francine: after friday's dramatic deal in brussels, greece's prime minister has just a few hours left to submit reforms. guy: we have every angle on this story covered. joining us from berlin, our international correspondent, hans nichols. from the dread, charles. from athens, erik schatzker. hans, let's talk to you first. you were there on friday. where are we on monday? hans: well, we've seen some positioning from all the finance ministers, prepping their publics for what to expect. we don't have the details yet. we don't know how greece is going to abide austerity measures. they got a little reprieve on their fiscal surplus. they can spend a little bit more. they don't have to reach that 3% target this year, but we still don't have a great deal of d

francine: it might not come this year.pushing back there for test. -- their forecasts. jonathan: in the year we've had so far, 12 nations easing. people are discussing the potential for the fed to capitulate. guy: i wonder if we are going to talk about whether the stronger dollar will slow down the economy. jonathan: at one point we were talking about the strong dollar and closed economy won't matter. then people are talking about it affecting the trade balance. is it a job for the fed or the treasury? francine: what can the treasury do about it? nonfarm payrolls later. jonathan: i will put it on twitter and one minute. francine: we are not going to invite him back. that is it for "the pulse." keep it here on bloomberg tv. "surveillance" is next with tom keene and his team. guy: we are on twitter as well. @guyjohnsontv and@flacqua. bloomberg tv continues after this short break. ♪ >> this is bloomberg "surveillance." tom: on jobs day economists are focused on your paycheck. too many americans falling behind. the hollande-me

francine says francesco -- francine: francesco, thank you for joining us.o the cfo of a water company. that is coming up on "the pulse." ♪ francine: welcome back to the pulse. guy: growth in the years to come. they will pay dividend this year. francine: we are joined by v eolia's cfo. is this a significant turnaround? things are going to get easier? >> that is the general feeling we have. we started a transformation plan and today we are reaping the first results of this effort. we are back to growth in every financial indicator, sales are up, ebita is up. this triggers a rebound the challenge is to continue to grow. given gains and the growth we are in joining overseas, we are very confident we will be able to deliver what we promised to the market which is to generate enough to fund the dividend. guy: later this summer we will get the new strategic plan from the business. can you give us a sense in which the areas are likely to focus, what are the key drivers for the business? as an industrial company, we are new to the exercise. the good news is, we have

francine: i'm francine lacqua. live from london.as announced a $40 billion bailout for ukraine as peace talks continue. the cease-fire announced for sunday. ryan chilcote joins us. the very latest, we saw the leaders leave, we do not know borders and actually white house they have disagreed on. ryan: the single part -- the simple part is this weekend. saturday night into sunday they are going to stop shooting. 2 days later they are supposed to begin pulling back weapons. that plays out over a couple weeks. that is the simple part. then the political part has to happen. that is where things are more complicated. ukraine has a great to decentralize, not federalize power in its country. it will have to pass constitutional reforms that will establish breakaway areas, give them a special status. once that has been done and they have had a regional elections in those places, then according to this agreement, the ukrainians the federal government will start to get control of the borders. i.e. the border between russia and ukraine which is

olivia: francine, thank you so much, francine lacqua of "the pulse," and also banks to brendan brown and troy, who are staying with us. should europe forgive greece's debt? tweet us @bsurveillance. still to come on "bloomberg surveillance," president obama has a lot on his plate. what is his best military strategy? will discuss as he goes to congress to seek more war powers. this is "bloomberg surveillance." on bloomberg television, streaming on your tablet, your phone, and bloomberg.com. ♪ tom: good morning, everyone. "bloomberg surveillance." oil in america, $49.73. soft yesterday and oil a little bit of a bit earlier. we are under $50 a barrel. words watching. let's go to brendan greeley right now. he has our top headlines from around the world. brendan: is really are taking aim at prime minister and been met in yahoo! -- prime minister benjamin netanyahu. critic concluded his former envoy to washington who says his address good hurt relations with the u.s. the speech was arranged by house speaker john boehner without white house approval. u.s. state department is closing its door

i'm francine lacqua. guy johnson is in munich talking to a

francine is with us now. francine: it is all about grace.ing to continue that with a panel. we will be talking to the chief economist of unicredit and asking that very question, why the markets are higher. that and we speak to a former fed governor. jonathan: looking forward to that. as we had to the break, let's check in on euro-sterling. euro-sterling setting a fresh seven-year low. there it is down by 0.1%. the ftse 100, we are higher by just 2.5 points. the dax, 0.2% lower, coming off that all-time high. the cac 40 over in paris also trading lower into those key talks in brussels. they made a compromise. it wasn't enough. it got a little ugly. we will talk about that later in the morning. if you want to consider the conversation, you can follow me on twitter. good luck for the rest of your day. i hope the sun comes out in london. ♪ francine: on the brink in brussels. europe's finance ministers meet for the second time this week. praise and germany continue their standoff. the ukraine truce tested. a rebel offensive takes the strategic to

i'm francine lacqua. a crossroads for europe. greece and ukraine face critical meetings that will determine their path for the next couple months. let's get straight to our reporter on the ground. the greek prime minister, alexis tsipras, won a vote of congress -- a vote of confidence for his anti-austerity program. now, the tougher task of convincing creditors to a new agreement. germany is showing no sign of backing down from its opposition to the new deal. for more, we are joined by hans nichols. you will be going to brussels later today. what can we expect from the meeting? >> we are going to get the formal presentation from yanis varoufakis on what he wants in terms of a bridge loan. what we expect is 8 billion in increase in the t-bills, and an additional 1.9 billion. let me read you some headlines from the greek papers this morning. one, high taxes will bring recession. another, new taxes for real estate and income. the eurogroup will either point to agreement or a rupture. at the same time, the ma

francine. francine. this thing -- these little devices that we call smartphones, all of which have cameras on them -- watch this. francine, somebody rolls over to your house -- neighbor. >> okay. my neighbor. >> click click. >> he took it all. he had it all. >> what did lifelock do for you? >> well, lifelock kept alerting me because the thief kept trying to move my bank accounts to different p.o. boxes. so, lifelock would call me up and say, "hey, are you, uh changing an address?" and i said, "no. no." i got the alert -- "hey, he's trying to open up another seven credit cards." lifelock -- >> and each time that alert comes through, that's not saying, "oh, this activity's going on, and we didn't do anything." they stopped it from happening. stop it. >> they're my angels. >> all right, folks, what else do i need to do to convince you to get identity theft protection? we've shown you from both sides -- from the victims and the thieves -- just how easy it is for identities to be stolen. you've expe

i am francine lacqua. here on bloomberg's top headlines.'s economy expanded less of an economist estimated. -- less event economists -- less ativan -- economists estimated. [indiscernible] greece's euro area lenders voiced skepticism. discussion fa to make sufficientiled progress. ; negotiations will continue in brussels. ukraine's truce with russia is at a risk of unraveling. the government of kiev and pro-russian separatists accuse each other of several violations. the town on the road that connects donetsk and the standoff near the town is emerging as the biggest threat. hsbc ceo is offering his apology about how the bankrupt customer evade taxes. they have no appetite to do business with clients who are evading their taxes. manus cranny joins us with the latest. does a very hot political potato. we are couple of months -- this is a very hot political potato. -- we are a couple of months away from an election. >> how hsbc handled from a stream of names handed over. christine lagarde, we could blame her, she was on the list. an individual

my colleague francine lacqua will be that half past after the hour.he european central bank is not making it easier for greece as a new government prepares to extend the loan required. the ecb gave greece a small increase in emergency funds. there's report out of the ecb was to reduce capital controls. let's find out what we know and what we need to know. husband locals, he joins us from a berlin -- honda nichols, he joins us from berlin. they may be playing hardball. >> says what it looks like. these two stories could be related. the ecb could not force the greek central-bank to impose controls. that would have to come from greece. if they only have so much breathing room to the emergency equity assistance that could have the effect of forcing them in effect to impose capital controls. it is report at the frankfurt newspaper, which is very well sourced in german circles. it's unclear if this view that german ship -- greek should impose as pan-european or just a german view and they want to help make it a reality. we are waiting this morning on the su

>> good morning, francine. they do have these technical conversations going on for a long-term program. they want to agree on all the numbers. eu officials, technical advisors, and greek officials. they are going to have a political agreement. we don't have a political agreement yet. we have an agreement to go through the numbers and continue the negotiating process. they need the same data sets and that is why we need to have -- that's why it is important that you do have these numbers. angela merkel is positive. she says that mr. tsipras was someone that she could work with. >> we gave each other a friendly greeting. i congratulated him on his election win. i told him that from my side we want to work well together. we will take a look at the different points where we need to find common ground. it was very friendly. >> where germany's prepared to compromise, they are saying not all of the bailout program. not all of the points need to the adhered to. the greeks think about 70% is level. the question is what

. >> i am francine lacqua. the main story of the day.t is oil and one is greenspan >> the new government a write-down on its debt. -- one is oil and one is greece. borrowing for new bonds. >> less figure out what is going on. a calming effect. hans nichols in berlin. what is going on, hans? >> here is what we know. he spoke to a group of about 100 financiers and laid out a plan to swap the debt by the ecb a european financial stability fund for these new bonds. these new bonds would be linked to long-term group. there would not be an thing on the eye on the upside on the debt. crucially and importantly, they are not going to call it a haircut. the politically difficult, politically awkward term especially here in germany. here is somebody inside of the meeting and will give you her take on it. they are looking at restructuring of the eu's bilateral loans and leave a imf and private sector debt alone. they are working a case without being specific on how the restructuring will take place. head of research and the greek government plans to

i'm francine lacqua. >> i'm guy johnson. these are the shares to we're watching today. >> janet yellen signaled that the fed has interest in holding interest rates to near zero. yellen is set to testify again today in the senate. >> hsbc executives and c.e.o. will be asked questions about the recent tax evasion revelations and we will bring you to grilling of these executives live and in full starting at 2:15 london time. >> gazprom is seeking a u.s. stamp of approval. they are working on a fresh two-year authorization to move as much as $2 billion in natural gas to the u.s., mexico and canada. they might impose additional sanctions on russia. >> let's check out what's happening in the markets. first stocks. yesterday we had some highs. today we backed off a little bit. though we're not down by much. the ftse is down less than 1/10 of 1%. the dax has backed off a little bit as well. still north of 11, though after yesterday's highs. i think it is holding ground to be honest. these are fairly smufles. >> let's have a look at

i am francine lacqua. we focus on cheap money and the tough questions that go along with it.he fed raise interest rates? we have the managing director of the ims.

am francine lacqua. can the fed raise interest rates?

francin lives in fresno and rainy lives in north carolina. both suffer from a rare blood disorder.ainy's started a social media campaign. that is how they found may's long lost friend. they reunited at oakland's children's hospital yesterday and received blood transfusions. >> we've been together as long as i can remember and we seem to find each other in the orphanage. we eat luncheons at school and we sit by each other when we eat lunch. >> doctors say the girls need blood transfusions once every three to four weeks but bone marrow transplants would be the ultimate cure. the families are trying to get more people to sign up to be bone marrow donors. >>> bat kid is returning to the bay area tonight. >> we decided to turn san francisco into gotham city. >> the 25th annual film festival in san jose will kick off with bat kid begins. it's a documentary about cancer survivor miles scott and his wish to become a super hero. >>> time is 4:49. you have just a few more minutes to help put either a san francisco giant or oakland a in the final round for the face of major league baseball. i

i am francine lacqua.next hour, we focus on cheap money and of course the tough questions that go along with it. can the fed raise interest rates? will quantitative easing work in europe? how much weight do we need give to the price of oil when setting monetary policy? are monetary policy and currency wars the biggest risks to business? joining me to discuss this, we have a cracking panel. christine lagarde, managing director of the imf. gary cohn, coo and president of goldman sachs. ray o,

. >> guy johnson and francine will be all over that. here is a picture of the markets.reek stocks are getting a boost. the dax is up. if you want to continue the conversation i am on twitter. >> addicted to debt. greece's finance ministers says his country must quit its debt dependency. he's due to arrive at downing street shortly. >> ryanair's high hedge of the discount carrier upgrades its full-year profit goals but warns it may trim next year's earnings. >> crh seals a deal with lafarge and holcim. we will speak to the ceo this hour. good morning.

. >> i am francine lacqua. no deal for greece.ailout talks broke down. >> both sides refuse to blink greece is rushing toward the cash crunch that threatens to drive it out of the eurozone. we are joined by hans nichols. and without the bureau chief in joins us from greece. hans, let's start with you. let's talk about the greek finance minister, yanis varoufakis. and his reasoning about what he is doing. >> according to him, it is simple and illogical for yanis varoufakis to excel at a deal, a program his party was elected to repeal, it is simply a nonstarter. he said they went backwards last night and not forwards. he said. the last week's meeting, they had a few setbacks and then they made progress. he held out the prospect for additional talks is that he is willing to negotiate. >> we have been saying steadfastly for the beginning we want an honorable settlement. we want to wedge together these principles, the principles of the program have to be respected and the government that challenges the logical problem and find common g

a lot coming up, francine. >> looking forward to it. thank you so much.loomberg surveillance" in 25 minutes. >> we are going to be speaking exclusively about structured capital. >> you are also looking at pictures of mark carney talking about inflation. that is not mark carney. he is offering a question to mark carney. [laughter] the impact of the euro crisis does have an impact on the u.k. he has been talking about divergence in terms of inflation. >> the inflation story is interesting. they expect inflation to return to the normal area of policy within probably a year. dr. carney continues to give testimony in westminster. in the meantime, we will see you in a couple of minutes. ♪ >> welcome back. >> mark kearney is continuing to testify. he is saying that the lower inflation rate is temporary. he very much expects that to dissipate. that is not mark carney. let's talk to antonio pascual. very nice to see you, antonio. is the bank of england correct? >> we believe so. we believe inflation will be close to zero. as we approach year-end, we think inflatio

francine: hsbc under pressure. the bank reports a profit mess. guy: and the winner is "bird man." film is given hollywood's highest honor, taking home the oscar for best picture. good morning. welcome to "th

francine: bt goes mobile. the british carrier buys ee in a 12.5 billion pound deal. a sales surge. daimler reports a profit increase as it races to overtake vw and bmw in the luxury sector. we are going to speak to daimler's ceo in just over an hour.

guy and francine with "the pulse" in four minutes time. check out the ftse 100. points from an all-time high. up 0.2%. the dax climbing higher by 57 points. the s&p 500 closed yesterday at an all-time high. some of these levels are pretty impressive. you want to consider the conversation, you can follow me on twitter. good luck for the rest of your day. >> borrowing time. greece looks for a loan extension. >> the ecb meets in frankfurt. >> a luxury carmaker confirms it will build an suv. do not call it that. >> good morning. welcome. you are watching the polls. >>

i am francine lacqua. we focus on cheap money and the tough questions that go along with it. can the fed raise interest rates? we have the managing director of the ims. gary:. -- gary: cohen. we have the founder and chief investment officer of bridgewater. larry summers, former u.s. treasury secretary. thank you for joining us in this great bloomberg panel debate. the world needs more easing. how difficult is it going to be for the fed to raise rates? >> the fed is probably going to rates this year. our expectations of the imf is that to have any midyear contrary to what is expected. the fact that the fed is going to do that is good news in and of itself. it shows that two things are moving in the right direction. employment is up, unemployment down. and inflation is hopefully giving little signs of moving up in the right direction. with these two indicators, which have been extremely well communicated and identified by janet yellen, who has done a terrific job in communicating and giving the right anticipations to market operators, i think that it is good news in and of itse

i am francine lacqua. can the fed raise interest rates? we have the managing director of the ims. we have the founder and chief investment officer of bridgewater. larry summers, former u.s. treasury secretary. thank you for joining us in this great bloomberg panel debate. the world needs more easing. how difficult is it going to be for the fed to raise rates? >> the fed is probably going to rates this year. our expectations of the imf is that to have any midyear, contrary to what is expected. the fact that the fed is going to do that is good news in and of itself. it shows that two things are moving in the right direction. employment is up, unemployment down. and inflation is hopefully giving little signs of moving up in the right direction. with these two indicators, which have been extremely well communicated and identified by janet yellen, who has done a terrific job in communicating and giving the right anticipations to market operators, i think that it is good news in and of itself. the consequences will be a different story. clearly there will be side effects, spillover effe

i am francine lacqua.the next hour, we focus on cheap money and of course the tough questions that go along with it. can the fed raise interest rates?

i am francine lacqua. over the next hour, we focus on cheap money and of course the tough questions that go along with it. can the fed raise interest rates? will quantitative easing work in europe? how much weight do we need give to the price of oil when setting monetary policy? are monetary policy and currency wars the biggest risks to business? joining me to discuss this, we have a cracking panel. christine lagarde, managing director of the imf. gary cohn, coo and president of goldman sachs. ray dalio, founder and chief investment officer of bridgewater. ana botin, chairwoman of banco santander. larry summers, former u.s. treasury secretary. thank you for joining us in this great bloomberg panel debate. the world needs more easing. christine lagarde, let me start with you. the world needs more easing. how difficult is it going to be for the fed to raise rates? >> the fed is probably going to raise rates this year. our expectations of the imf is that to happen in midyear than the end of 2015, contrary to

i am francine lacqua.ver the next hour, we focus on cheap money and of course the tough questions that go along with it. can the fed raise interest rates? will quantitative easing work in europe? how much weight do we need give to the price of oil when setting monetary policy? are monetary policy and currency wars the biggest risks to business? joining me to discuss this, we have a cracking panel. christine lagarde, managing director of the imf. gary cohn, coo and president of goldman sachs. ray dalio, founder and chief investment officer of bridgewater. ana botin, chairwoman of banco santander. larry summers, former u.s. treasury secretary. thank you for joining us in this great bloomberg panel debate. the world needs more easing. christine lagarde, let me start with you. the world needs more easing. how difficult is it going to be for the fed to raise rates? >> the fed is probably going to raise rates this year. our expectations of the imf is that to happen in midyear than the end of 2015, contrary to wh

francine lacqua caught up with a key official, pierre muscovy see, and the eu economic commissioner saysgreece voted in an anti-austerity government, the economic situation is under control. >> my convictions since the beginning have been that when you face elections the democratic choice must be heard and respected. it is normal that this government wants some changes. if those changes are about better public administration as a rule of law, stronger fight against tax evasion everybody should, and i'm sure will agree, but for the rest of it, we know that reforms had to be fully funded and that the commitments taken with europe had to be respected. this is what the discussions four months from now will be about. we went through a possible crisis. we avoided that. let's move on. my only plan since the beginning is greece in the eurozone. i refuse to consider other solutions because it is our common interest. i think everybody in the eurozone knows that. it will be difficult. we still have a lot of ground to pursue together, but while we do it, we must do it. friend bank you don't like spe

francine lacqua caught up with christopher daily. he spoke about burberry's work, and what it means to be a british heritage brand. >> what we wanted to do -- this was to celebrate all things british. from our crafts to architecture to music and fashion. for me it is wonderful being british. we are surrounded by such strong, creative industries. from where i am sitting, we are in a great place. >> burberry has always spearheaded the social movement and now you are going to start more engagement with japan. what is that like? >> it is exciting. we have got an amazing organization, very dynamic and flexible. it feels like when you are there, like the energy of a startup. that is really exciting for us because that is how we try to keep burberry, try to keep the energy of something new, the passion is something new. that idea of being curious. that is what it feels like working with them. we had done a couple different things and some of the team is coming in. >> engagement is also so much stronger. >> the thing is that it works on so m

he is joined by francine prose. her latest book mothers that the to million club is the novel set in the 1920's. also on the panel is the author of more than 40 books most notably of the easy rawlins mystery series. it happens of radical black nationalism and objections. ladies and gentlemen, our panel. [applause] >> in 2012 and a first are did to buy the book i had a few motivations. while i like to believe as the editor of the book review the only reason they ever buy books is due to book reviews. occasionally there are other reasons and one of the run -- the ones most cited is sort of mao's. one is the current controversy. as we think evade dorky and cheaper red carpet question. but i would ask the people that we read what are you reading and why? i a fatah of this while at the apollo theater in harlem and always i thought that was kind and generous. not all of them were funny but he was the first person i asked to do by the book which is now booked through 2015 it has become so popular with authors and others th