i'm francine lacqua.

is this a sign that mario draghi is losing patience with francine lacqua tsipras? francine: it is.ood morning to you. it is important to say that this program has not been put to the government counsel yet but it shows the ecp is more and more uneasy with what is happening in greece in negotiations between creditors and the government. it seems to suggest that they are at least thinking of a plan on how to reduce their loss. this is significant because if you look at the different life boats available to the g reek government it is the ela, the emergency liquidity assistance provided by the ecb that is so important. greek banks have to go through the national bank. if we are talking about haircuts, that will make a difference about how much they will demand but it also means that in acaese of default, it will protect the ecb. tom: with haircuts, we are talking about real pain for real people. how close are we to a restructuring? francine: no one is talking about restructuring. when you look at the haircuts in this context, it would be for the greek banks the banks would have to eit

for francine lacqua, what is different? ne: you see the finance ministers being a little bit mad. this is the diplomatic way of putting it. to hans' point, for the first time we understand that eu ministers are calling greece. they are saying this is not fair. you are not negotiating so we cannot give you anything. is nothing different apart from the fact that nothing is different. you've had 22 or 23 meetings and we still do not have an agreement. it seems at this point nobody wants to have the legacy of kicking greece out of the euro. not a legacy that angela merkel wants yet we do not have an agreement. brendan: i'm looking at a headline from draghi. he says emergency lending authority will continue as long as greek banks are solvent. seems like circular logic, they are not solvent unless they have ela. francine: we had an accomplice -- we had an economist and he was saying this is the problem. the emergency liquidity assistance is what is keeping greek banks alive. draghi says we have to put pressure on greece but he doe

i am francine lacqua. guy: i am guy johnson. francine: china's exports plummeted.ast were for a gain of 9%. it came in at -15. let's get to tom. export data looks pretty terrible. is it as bad as it seems? tom: 15% contraction in exports is never going to be a good think. so i think it is bad. at the same time china's export needs to be handled with care for a couple of reasons. firstly at the beginning of the year, we see a lot of volatility us so seeing it with the new year holiday. wet a surgeon asked since february and we have seen the collapse. -- we have seen a surge since february and we have seen the collapse. that is not stellar. it is not disaster was either. the second reason you need to handle the exports with care is because with china's factories beginning to game the system. last year, over invoicing china's factories were saying they were exporting more than they actually were. and capital controls to bring to the contrary. this year, it seems to have been a smaller factor and can be weighing on the headline exports. guy: everybody now looking at th

i'm francine lacqua. guy: i'm guy johnson. e: loreal reported a 14% increase in first-quarter sales. as a weaker euro helps compensate for sluggish growth in western europe. guy: sky reported a 5% rise in nine-month revenue in a surge of new subscribers. adding th emoe most uk customers and 11 years. -- in 11 years. francine: european union leaders were hold an emergency summit to address the growing humanitarian crisis in the mediterranean after a boat carrying hundreds of people capsized off the libyan coast. >> the mediterranean, it's drama tic. it cannot continue. we cannot accept hundreds of people die when trying to cross the sea to europe. this is why i have decided to call an extraordinary european council meeting this thursday. this is why i traveled to the region two weeks ago. the objective for the summit is to discuss at the highest level what we the eu institutions together canada must do to alleviate the situation n-- can and must do to alleviate the situation. guy: across the road, the competition commissioner ve

francine lacqua is off today. we begin with the mega oil deal. shell has agreed to buy bg group for around 47 billion pounds around $70 billion in cash and stocks. that makes it the biggest deal in the oil and gas industry for at least a decade. caroline hyde joins us at the touchscreen. caroline: a cool 47 billion pounds. a cool 50% premium on bg's share price. this is record data in terms of size of move, but if you go back, it is only since july 2014 when we last saw this price on bg group. that was the amount that the oil prices plummeted dragging down the price of oil stocks. suddenly, everything looks a little bit fairer valued. that is what has capitalized this deal to spark the biggest energy deal in a decade. suddenly, assets look well priced. creating the second-biggest energy company in the world this would be the biggest player in the ftse 100. it will have sheer size and scale. interestingly, shell saying, we will build a company with three pillars. they are going to reorient themselves. why are they getting into this? why go big on

i'm francine lacqua. guy: and i'm guy johnson. ne: talks between iran and world powers have entered an eighth day. the u.s. state department said that progress had been made in meetings between secretary of state john kerry and his iranian counterpart toward continuing talks. negotiations are aimed at ending the standoff over the republic's nuclear program. guy: greece has submitted a new list to their creditors in the hopes of securing a financial bailout as opposition leader samaras tells bloomberg he would join a coalition to keep greece in the euro. he signaled his willingness to join a unity government if the concession is required to win the emergency loans. francine: suspected islamist militants have formed a university campus in eastern kenya, taking students and teachers hostage. assailants rated the university -- raided the university. that is according to that operations center according to what it said on twitter. two people were killed. guy: president alexander lukashenko, europe's longest-serving leader, is also calle

my colleague francine lacqua is off today.eek's say they will make a payment by the deadline. hans, mr. tsakalotos decided to do this meeting face-to-face. what was he hoping to get out of it? they were assuming the fund would be repaid. hans: well, it was a two-hour meeting. it was a surprise that he went there first. remember there's some daylight between what the u.s. needs to do and he may have been seeking allies. we know coming out of the meetings that he was looking at a way to come out of the climate -- he gave a an interview to a local newspaper saying when he thought -- yes it includes $1.5 primary -- and a big hefty investment from the european investment bank investing in greek european infrastructure. one final note. they are complaming march tax receipts were better than expected. going hans i don't see that there's a problem here because apparently the germans tow greeks for reparations. >> they have come out and said that's a non-starter and in line with what merkel is saying. what's interesting is about this i

i'm francine lacqua. guy: and i'm guy johnson. these are the top stories. ch for survivors have entered the third day. dozens of aftershocks have hindered efforts after the earthquake. the quake killed more than 3,200 people and injured as many as 5,000. guy: a german lender will reduce the countries it operates in and close up 200 branches. the chief executive officer are saying the bank's stock has been the worst performer amongst its global peers during the three yee tenure. francine: we'll be talking to him shortly. v.w. shares are up following the resignation from the carmaker. the departure follows a feud that saw him trying to remove the c.e.o. piech has been a power player at the top of the carmaker for two decades. analysts say the move could accelerates efforts to empower regional managers with opportunities, particularly in the u.s. guy: some of the stories playing out, let's find out. jonathan: blanket red for the european indices, loss of .4% on the ftse, .3 on the dax and frankfurt. so many stock stories out there. here on the ftse, we're lower

i'm francine lacqua. here are bloomberg's top headlines.anced negotiations to acquire alcatel-lucent. in a statement they said they are the companies are in advanced discussions with respect to a full combination. the move would strengthen their communication business and allow them to better compete with eriksson. lvma reported a 16% increase in first quarter sales. they saw growth in the americas make up for slowdown in china. shares are up 30% this year helped in part by a weaker euro. an heir to the nina ricci has been found guilty of tax froud. -- fraud. ricci is the first of about 50 french nationals to face trial. you'll hear plenty more stories like that. we also had u.k. consumer prices out in the last hour. the u.k. dodging deflation. let's see how the markets are reacting. we had a little bit of pound weakness? jonathan: got some movement in the fx market. it is a blanket sea of red. losses of over 1% on the ibex in spain. the the miners are charging ahead. it is the banks pulling us down. pulling back from record highs on the st

i'm francine lacqua. the international monetary fund managing director, christine lagarde, warned that she wouldn't let greece slip a debt payment. >> the new reality could be the new mediocre. if policy makers finance ministers, and governors of central banks do not address the risks we have on the horizon, that new reality -- on verizon. that new -- on the horizon. that new reality could look a lot better. francine: she was talking about the new mediocre. that is a response to the stagnation we had from the former treasury secretary. she also talks about this payment to the imf. she said she would not only encourage it, but she would be disappointed if they did have to delay it. the country is running out of cash as it is locked in talks with creditors to release aid. those bailout talks at those talks, yanis varoufakis was insistent that he was willing to compromise, but he would also stand firm on not crossing the government's redlines. >> we will compromise. we will compromise, and we will compromise

i'm brendan greeley with francine lacqua. the united nations could move to closer ties.eet with the president of cuba. secretary of state john kerry met with cuba up a foreign minister. general electric is making it clear its plans to sell off ge capital. also on the bloomberg terminal california is hitting utility with a record fine for a deadly explosion. pg&e must pay $1.6 billion in fines. the faa is calling out united continental airlines for a systemic hazard. the wall street journal says regulators stepped over. united says it supports the program. jurors in the aaron hernandez murder trial are entering a fourth day of deliberations. he is accused in the 2013 killing of odin lloyd. a photographer from a boston tv station was banned from the courtroom after committing to following jurors to a parking lot. a-rod hit his 650th home r in toronto. he is just five behind willie mays on the all-time home run list. francine: coming up on "in the loop," ge scorches gears -- switches give a president obama meets cuban leader rual castro. brendan: you say queues. it is delig

i'm francine lacqua. guy: good morning. i'm guy johnson. uge of chinese manufacturing fell to a 12-month low in april. a number below 50 indicates contraction. guy: visa and mastercard shares surged up. visa was the biggest gainer. mastercard shares made similar gains. francine: the european central bank doubled an increase in emergency funding for greek banks. they raise to the cap on emergency liquidity assistance by about 1.5 billion euros to 75.5 billion euros. guy: let's talk about the markets. what has been going on? we had a relatively flat open on the deposit front. jonathan: the data happened. asian slowdown. pm eyes coming in below -- pmi's coming in below expectation. europe got a real reality check. miss, miss, miss. miss across the board. the data for the eurozone, the cop as it pmi -- composition pmi , also slipping. equity markets pulling back a little bit, led by the miners -- that is the biggest industry losing group the last time i looked. some money going into bonds. when do you get to say that boone deals -- yields triple

i'm francine lacqua. guy: i'm guy johnson. these are the bloomberg top headlines. sco has reported its biggest loss in its history. they took 7 billion pounds in a one-time charge including a 4.7 billion pound write-down on the valuor its stores. it is not great. bottom line, it is not great. just have to rebuild the trust of its customers. guy: the trade -- the trader from west london is appearing at an extradition hearing this hour in london. the flash crash wiped a artillery yoon dollars from the u.s. market on may 6, 2010. francine: the finance minister said greece and its creditors are nair owing their differences. comments come after prime minister -- to transfer funds from the central funds to give the government enough cash to stay afloat until the on the other hand may. guy: what's going on? jonathan ferro has details. jonathan: 20,000.s if tr first time in 15 years. we open higher here in europe. everything rolled over. this is sort of broad based. losses on the ibex sand spain over. grexit risk back on the table. we seem to talk about it every day. soundi

i'm francine lacqua. comboip i'm guy johnson. these are the top headlines. foreigners including two australians were executed by a firing squad for drug smuggling. the executions went ahead despite more than 60 appeals for clemensy by the australian government. guy: a new crown prince has been named. the oil minister has been replaced as chairman. francine: the greek finance minister varoufakis has been given another rough ride. according to a statement he released through the finance ministry he and his wife were harassed by anarchists at a greek restaurant yesterday. his wife shielded him when the anarchists threw glasses at them. he wasn't injured and had a discussion with the anarchists after the incident. nothing like having a strong woman by your side, guy johnson. guy: right. ok. let's talk about the markets. over to you. jonathan: thank you very much. so this is the equity scene. i'm not going to spend too much time on it. equity pretty much flat across europe. you don't i want to spend much time talking about stocks? because i want to spend all of my

our european editor at large francine lacqua, joins us. good morning. s a sense of what the outlook is for the european economy. i heard that someone say russia is out of the penalty box. francine: right. it is still in a very difficult position. thank you so much. we had the news from the russian central bank. this is an economy that is still on its knees. it is not an critical territory, but we are expecting gdp to fall by 3%. this is an economy that has had to do with sanctions and lower oil prices. they had a budget based on $100. the ruble is the best-performing currency this year, but it is still gyrating finally, -- violently, especially if you look at last year. they are trying to figure out how much they can take rates lower without jeopardizing the bigger picture, which is making sure that people have enough food. olivia: another story rbs still not making any money. what is the back story? francine: rbs is very important. we are one week from the u.k. election. this is a bank that is owned by taxpayers. we would have hoped but -- that by this

francine lacqua knows the mark.in athens as many times as she's been on the greek islands. she joins us this morning. i want to talk about the policy process here. i think our viewers and listeners in america are baffled by the process of all this. who does greece speak to? francine: same people, tom, that they've been speaking to the the last six weeks. it's the you're roe nations and what they call the brussels group. this is the formerly known troika group. the problem is they still don't have an accord and that's what's so crazy if you want to talk about this process that they've been talking. and the e.u. just wants a little bit from greece. tom: is brussels part of the dialogue? francine: yeah, but they're the second people after the you're roe nation because it's a little will. we talk about did lines. it's about the -- deadlines. and at the moment, they say we can't give any more to greece because if we do, then the spaniards they can portuguese, even the italians will come back to us and say went better dea

brendan: francine lacqua from a gas with us from london. -- francine lacqua with us from london.ll to come, which countries are honorable to oil prices? we dig into the winners and losers. ♪ tom: good morning, everyone. let's get right to our top headlines. olivia: breaking news this morning out of europe. european investigators have been investigating google for more than four years. it saying it highlights it on search read -- search results at the expense of its rivals. and gdp growth was down the most in six years. output, investment, and retail data in china all point to a slowdown. there is speculation beijing will move to simply become human -- the economy -- to stimulate the economy further. also, boston will market its second anniversary of the 2013 boston marathon bombings, which killed three people and injured more than 60. dzhokhar tsarnaev could be sentenced to death for conviction on 30 federal council stuff and there is controversy brewing over a recently released police video from a dash cam. an officer is seen ranting and arms cruiser -- an armed suspect. the off

we are lucky to have with us francine lacqua. she just blew in. to the bank of england news? francine: this was pretty much expected. you're looking at it uncertain election. you're worried that the fed has not done anything yet. it is powering ahead. wages are not rising any still have the productivity -- olivia: sounds similar to what's happening in the u.s. it looked like england was going to be the first major g-7 economy to tighten. now, not so clear. francine: you look at greece europe this may spill over into the u.k. if you are in the u.k., why would you go first? let's wait for the fed and then maybe he goes next. brendan: alexis tsipras has returned from moscow. his finance minister is in paris. the country will pay the imf half-a-billionaire dollars. at the conference where you are in the actual senate, they are talking about economic macroeconomics. outside, i imagine they're talking about greece. what are you learning ge? >> fragility -- all the issues are on greece. the message is very clear. on the way to meeting the imf obligations

speaking to francine lacqua, he said the odds are higher than 50/50. emotionally psychologically, it might be damaging. whether from a financial stability point of view i think we have come to terms. i got that impression in brussels this week. i got the impression from some of the officials they all must have a mind of, look, it's going to happen. caroline: let's turn to the u.k. election. the labor leader david miliband will face david cameron today. anna, it is an argument that we expected? anna: it is interesting one of the criticisms leveled against ed miliband is he statesmanlike enough. with two weeks to go into the election he will be making a big speech about international relations, about the role of britain in the world. the tabloids have launched a blistering attack on the prime minister. he will say it is time to reject small minded isolationism that diminish the office of prime minister and shrunk the influence of written. specifically on libya, he will lay just a portion of the blame for the libyan refugee crisis on the door of david cam

francine: i'm francine lacqua. central banks are in focus today. the fed left open the possibility of raising interest rates in the second half of the year. guy: bank of japan kept the status quo. it will keep adding 80 trillion yen to the monetary base. brazil's central bank boosted their interest rate for the fifth time in an effort to fight inflation. finally the russian central bank rate decision. francine: for more on this let's bring in james, a senior economist. let's talk fed. it seems yellen is hanging on to this rate increase despite the weak economy? is it a sign that she expects it to increase or is it a sign they are trying to give to the markets? james: they are expecting real household income growth which they sounded upbeat about in the statement. it will feed to consumer spending and increased business investment down the track. i think they are hopeful that is going to happen. it struck me by not -- after the march meeting and by not saying there was no predetermined path like they said in the march statement, there is an opinion

francine lacqua's back tomorrow. . these are the top headlines.man finance minister wolfgang schaeuble has ruled out further debt restructuring. on a similar subject -- >> the program has been extended twice and runs through june 30. if greece once to avail itself the solution must be found. >> your deadline is the 30th? >> that is the deadline of the program. guy: on a similar subject, the u.s. treasury secretary jack lew has been speaking to bloomberg about greece. he warned about the uncertainty a great exit would create. mr. lew: no doubt if this leads to an exit it would cause disruption and hardship. i would think all of the risk is protectable in advance and even if the contagion risk is less now than it was in 2012 and earlier it would not be good for a world recovering from a recession to have that kind of uncertainty introduced. guy: greece casting a shadow over the eurozone. the manufacturers association says registrations climbed 11% from a year earlier. he marched game was the biggest in a year. -- the march gain was the biggest in a

francine: i am francine lacqua. guy: we begin with oil. bp and total.es have beaten expectations. both reporting profits of $2.6 billion for the first quarter of 2015. an increase on the previous quarter. let's discuss the results with bloomberg's energy industry consultant. what do we get out of these figures? where do they do a? >> bp is the stand up. its earnings were more than double what was expected and that was driven by the performance of the refining and their trading operations. francine: so if you break it down, how much does it have to do with trading? is it more than 50/50? will: they are shy about talking too much about what this division does but they did note it was a much stronger performance in previous quarters and they were using $1.4 billion of working capital to buy oil, store and sell it. they are working this division hard. guy: this is how it integrated oil company is meant to work when lower prices are in the upstream, the downstream does well? ian: people that were calling for the breakup of bp got egg in their faces now. this

i'm guessing francine lacqua hasn't seen it as well.e has brokered something in the vicinity of that. fran keen lacqua is looking at 18 things this morning, including nepal, and also decide wlg to see "the avengers." right now, we look at the turmoil known as greece. francine greece spreads widen out this morning. we see a little bit of action. are we waiting one week or can we actually see something this week? francine: greece needs the avengers to rescue it, i think that's what you're getting at, tom. you look at what happened over the weekend, look, there's a clear money problem. we'll see this week whether the local authorities will obey the central government and bring the money that they have in order for the greek government to be able to pay pensions and wainls. but they are running out of money. we've been saying it for a while. i don't know if it's this week or next week, because in the next couple of weeks, first of all, we don't know how much greece has money in terms of money left, so what's certain is that the greek financ

let's turn to francine lacqua. help me understand -- what was everyone allegedly lying about?> you are saying it perfectly. he took center stage and he was on the right-hand side of the political spectrum. he was saying that the people of britain are being lied to about pretty much everything, about the state of the economy, nhs, immigration. it was on the attack. the people in charge were not there. it made for an interesting debate. you are missing david cameron and nick clegg. on ed miliband, the main opposition party, he did not talk so much about the economy, but talked more broadly about foreign policy and about what it means for the british person voting on the election. >> i believe that britain can do so much better. not a penny of our plan is paid for through borrowing. we will have more doctors and nurses paid for by a mansion tax on properties worth over 2 million pounds. we will clamp down on the tax avoidance and we will freeze your energy bills through 2017. >> they are lying about borrowing more money, is what one of the opposition leaders was alluding to. tom:

francine lacqua is our european editor at large and joins us from our bureau in london.is going on here? the economy in britain is doing relatively very well if you look around the continent. why isn't david cameron, the incumbent, the torre, more popular? francine: the million-dollar question, victoria. -- olivia. this economy is doing very well however, it is a problem of inequality, and that is why we are cb polls so that net. it is very clear at this right. it is unlikely we will get a clear majority and it is all about the deal. it is 16 days to the u.k. election, so i would be looking at the industries that have the most to lose or win, and i would put banks, insurance, and real estate on those. brendan: francine, there is a fine thing going on in the u.k. which i do not understand, you have a lot of regional parties making eyes at ed miliband and labor, and he is not yet saying yes, i want to join a coalition. when will that unrequited love turn into something? francine: "the unrequited love." i like that, brendan. a lot of the parties you're talking about are con

francine: and i'm francine lacqua.e pulse" live from bloomberg's european headquarters in london. guy: let's get to our stop story. the british bank hsbc may longer be british. hong kong or shanghai may be a more obvious destination. they are looking to possibly move to avoid a big government levy. what have they said? it is a constant subject of discussion for hsbc whether or not it should be headquartered here. they are now having a formal review. >> yes. they have done this in the past. they have reviewed their global headquarters in the past. the last time was in 2010. this was something they had put to bed a few years ago. they are bringing it up again now because the u.k. is considering hiking taxes. george osbourne said he will do so. the labor party would go over that. we have the election in two weeks. a deeply political timing for this discussion to start. it is an extremely complex one though and it will take some time to conclude. francine: complex, why? >> this bank is one of the largest financial organiza

francine lacqua is on the other side of the pond. she will be back monday. two of the biggest names in tact going head-to-head today with the launches of new products. samsung debuts its galaxy s6 and s6 edge, both being launched in 20 countries including the u.s., u.k., and germany. meanwhile, preorders begin for the new apple watch. take a closer look at this new products. three new products, i guess. josh and helen smathers managing director. josh, let's start with you. you got your wrist on the new watch. premium product? josh: absolutely. apple is positioned the watch almost entirely as a piece of jewelry. what they want to talk about is materials, the process. this is about as premium as you get in electronics. guy: the whole process seems to be moving upscale. we are looking at a story that is increasingly driven at the high-end by lux products with nice material. the rest of the world is not going to be buying this. they are buying middle to low and android phones, which increasingly are a problem for samsung. >> that phone that you are holding it is

i'm francine lacqua. this is "the pulse" live from london.s economy is in the spotlight with multiple economic indicators pointing to a deepening slowdown. stocks are headed for their biggest drop in weeks after g.d.p. growth, output investment, and retail data all dropped in the world's economy, in the world's second biggest economy. our chief asia correspondent joins us. tom, china's g.d.p. came in on target. we had very disappointing monthly data. how worried should we be about them? tom: i would tend to pay more attention to the monthly data. if you look at the headline reading, 7% growth in the first quarter, the premier says he wants 7% growth for the whole year so they're on target. if you look at the monthly data if you dig in a little bit, retail sales are slowing, the real estate sector continues to contract in terms of sales. exports contracted in march. so really, some fairly troubling signs in the more high-frequency data and signs that china's economy has further to slow heading further into 2015. francine: are we expecting a po