thank you, greece.thanks greece for giving europe a lesson in democracy political maturity, and courage. >> a lot of papers are focusing on syriza's leader alexis tsipras. >> he is the new face of europe according to this left-leaning paper. how did a 40-year-old relatively inexperienced greek politician managed to do this? over the last couple months, tsipras has surrounded himself with an experienced team. he has softened his more radical tone. le monde has a profile and says he deserves a lot more credit than that. they quote a greek journalist who likens him to the argentinian football player who took a mediocre team and let it to the top. he's more pragmatic and this is why his rise in greek politics has been like a meteorite. >> the big question is what happens next. what effect will this have on the eurozone? >> interesting to see how various papers are focusing on this. the main right-leaning paper here says this is like a bolt of lightning worrying europe and the markets. it is a harsh wake-up

greece has turned a page.reece is leaving behind the destructive austerity fear and authoritarianism. leaving behind five years of humiliation and pain. >> out going prime minister concede around 10:15 last night but it was interesting. he spoke about the fact he left greece in a better place than he found it. he said his policy had really delivered for greece. >> the greek people have spoken and we all transport decision. i've got my conscious clear. i received the country on the brink of disaster. i was asked to hold coal that was on fire in my hands and have done it. many were not giving us chances of maging it but we made it. >> the big question what happens next this. is when the political horse trading begins isn't it? >> it was incredibly close. just shy of 151 for syriza so yes we now get into the very interesting subject of government forming. at 10:30 we have a meeting between syriza and the independent greeks. the leader of that party made it clear he doesn't want to see anymore austerity. he wants

so we're going to ask the question, can greece renegotiate its $270 billion or will greece be forced out of the euro zone? ? >>>good midday in london, 7:00 a.m. in washington, and 2:00 p.m. in athens where greeks have a new leader. it is this man, alexis tsipras, who leads the syriza party, and there is one policy that have persuaded greeks to vote for him, a promise to an end to austerity. greeks have suffered years of punishing measures. now mr. tsipras says he will rewrite that deal looking at some of the numbers, you can understand why greeks might vote for change. unemployment currently stands at 26%. youth unemployment is almost 50%. the economy has shrunk by 25% since the start of the euro zone crisis in 2009 and about one third of the population now lives below the poverty line. but can mr. tsipras really deliver on his election promises and still keep greece within the euro zone? let's take it to mark lowe who is in athens where these are the two big questions today, aren't they mark? >> reporter: big questions, indeed. yes, hello, and thank you from athens where greece has

much more ahead on greece. greece on a collision course with europe over the bailout. the anti-austerity party syriza has won the greek elections in a surprise victory. we have got the former u.s. ambassador to greece nick burns, joining us with his analysis on what this means for your could we will speak to dartmouth a economist danny blanchflower. and it is one of the biggest selling videogame series ever. you recognize these characters, don't you? it is cap theft auto. we will talk to the ceo of the coming that publishes the videogame, take-two interactive. strauss zelnick will be joining us in a few moments. here is a look at our top stories. the incoming prime minister of greece has a warning for europe. the days of bowing to demands for budget cuts are over. the anti-austerity syriza party was the winner in yesterday's elections. premise mr.-elect -- prime minister-elect alexis tsipras has formed a coalition government. >> the verdict of the greek people ends beyond any doubt the vicious circle of austerity in our country. the verdict of the greek people, your ve

it has to do with greece. it's dominating the headlines ahead of a big earning week with apple, facebook. comes into focus with the two-day meeting this week. which is the bigger market mover. the macro picture or corporate? join the conversation on "worldwide exchange." get in touch with us. you can e-mail us. or you can tweet us. >>> the interesting day thus far for european markets. last week once we got the ecb quantity easing program we saw the stocks move higher. it hit a record high or a seven-year high. the german index hitting a record high. seeing a gain of around 2%. today a little bit of uncertainty on the table given that greek election investors trying to understand the ramifications for broader europe and how investors should trade europe now that we know the syriza party did win the election. stoxx 600 trading flats. we come off the lows of the day. let's dive into the european markets show you the gains and losses. trading at 10698 up about a half percent. keep in mind they gained about 2% on

greece's new prime minister is sworn in after his party wins the election. german foreign minister says russia's sanctions are tougher after an attack on ukraine's mario poole -- mario poole m --ariupal. and it has been 30 years the liberation of a german camp. a new government sweeps into power in athens, sparking fears over what that might mean for the eurozone. the party defeated its rivals by a wide margin in national elections. its leader campaigned on a strong anti-austerity message, promising to overhaul the countries bailout program. >> the country has agreed to form a coalition with the right-wing independent party. but first, a look at the first -- the prime minister's first day on the job. >> he was sworn in as greece's new prime minister on monday. shortly before, he received a mandate from president poppel the us to form a party government. his party wasted no time searching for allies and quickly formed a coalition with the independent greeks, a small right-wing anti-austerity party. the new partners are united primarily in their desire for rad

ambassador to greece. some countries such want greece to stick to the terms of the bailout agreement. if greece says no, there is a chance the country will not receive the support it needs to stay afloat. if that happens, will greece go bankrupt? >> yes. i think that could happen sooner than people think because you should start watching the banking sector first. they were low on liquidity before the election. the new prime minister lamothe have a lot of time to make sure he keeps on an even keel and a relationship strong enough that they support the greek ranks. there is going to be a lack of confidence. that will mean more outflows from the greek banks as investors continue to worry and citizens about savings. there's going to be a challenge quickly to this country. it is going to start with the political challenge of how they negotiate with the e.u. and germans in particular. >> will be currency survive a great exit from the eurozone? >> yes. greece is roughly 2% of the g.d.p. of the european union. as

a little more perspective on the impact in greece.e joined by the ceo of one of the largest shipping companies. he is the chief executive and joins us from greece. great to have you join us this morning. a big question that everyone wants to hear answer is whether business should fear cerise a -- syriza. >> we are glad that we are properly not going on a second election. the country could not afford a second election. we are happy that hopefully within the next 48 hours, we will have a coalition government between syriza and the independent greeks. that is the good news. for business i guess we have to wait and see. during this would have heard a couple of conflicting messages about this. we need to see what the plan is from the new government for the different segments of business to see if it will be positive or negative. we do not know yet. >> on the shipping industry what can the government coalition do to help your industry contribution to greece. >> i am not sure if you know. the previous government made an agreement with the sh

let's go from greece to germany. let's get straight to hans nichols. for the moment, they are playing hardball. it is remarkably consistent. the agreement reached with greece is valid. members of the parliament basically repeated that. a few minutes ago, someone on local broadcast the papers had something similar. here is what he had to say to the public broadcaster. i believe it is in the interest of the greek government to do what is necessary to tackle structural problems. that is a top tanker channeling the public view on this. the public opposes restructuring and that will likely be on the table today. the finance minister meets and the minister of france has hinted that he favors restructuring. most seem to be on the same page. no restructuring and no haircut. >> the very latest. it is a little bit like a chess game. third times's the charm. we are back with the details of the developing story. we are back in greece. what is on the agenda? >> plenty to come. we are watching the political situation very carefull

greece does not have much time.here's a deadline of february 28 for finishing the review with the imf a european partners and acb. and whoever runs in the government has to have in mind. >> how many greeks believe the talk of a potential exit from the euro is a bluff a way for the government perhaps to persuade them to vote for the incumbent record than the opposition austerity? do you think the threat of an exit israel? >> greek, as you well know, do want to stay within the euro area. more than 3/4 of the greeks was surveyed said yes, i want to stick with the euro area. they know the euro area brings a lot of benefits. they shape of the country. they give a future to the economy, to is politics. now leaving the euro area is not necessarily a bluff, and accident could happen. and the idea is to avoid it. >> it was a wide ranging interview and we sat down with the finance minister from us and our. some of the highlights you will hear, some other things he's said about bank withdrawals which were about 3 billion euros

greece is looking at snap elections at the end of the week.t is the bigger topic at the frankfurt stock exchange? >> the bigger topic is clearly until thursday afternoon, the ecb meeting. the majority is betting on a massive bond buying program. therefore, shares are up and the euro is going down. but the markets are not sure whether they are driven by the ecb, or whether it is the other way around. >> the german dax is on a record level, up more than 1%. the euro stoxx 50 up 1%. the euro is a bit stronger. >> it is in the green zone. only just. >> we have to note that. thank you very much. >> a new report from the antipoverty charity oxfam says the superrich 1% of the world's population could soon on more wealth than the remaining 99%. >> oxfam is calling on governments to clamp down on tax evasion, and push for all workers to receive a living wage. it says the world's 80 richest people have already accrued as much wealth as the poorer half of the global population. and to argentina, where a special prosecutor investigating a bombing in 1994

there was one massive civil war in greece that is hardly known outside greece that started before theworld war had even end. they fought in december 1944. when did hitler commit suicide may 1945. threrp already fighting their allies, the greek communist party fighting the allies and that continued until august 1949. greek communist party gets year in year out 12% of the vote. it means one historic with a pinch of salt. that's why they are positioned in greece, the right wing party. as they get nearer to have having a vote majority in the parliament is good news because they will not need to rely on anybody else. like them, don't like them, that's the way it's going to be. >> thanks for that. that's the way it's going to be. right now at least. still to come. >> we got an interview with alibaba and how he's used to people calling him crazy. ♪ >> we have a chance to speak to some of the big names including the u.s. treasury secretary. he's happy about the strength of the dollar. >> i'm going to repeat what i and all my predecessors always said which is a strong dollar is good for americ

at the end of the day, greece has to be governed. greece has to move forward.ants to stay as the prime minister, he needs to get the dollar had from the creditors. -- the go-ahead from the creditors. >> i was going to talk to you and ask you about angela merkel. there were reports that the german government is planning a possible greek exit. are people in athens talking about this? does that sway national sentiment? >> they are indeed. the problem is, usually when foreign entities mess with greek elections, it has the opposite effect that was intended. we do know that greece does not have the bargaining power of 2010 or 2012, when a possible default on the greek bonds would have effected the core financial system. right now, the situation is different. we do have something which is a bit worrying. a lot of countries and a lot of market forces would stand to gain from a crisis in greece. this is not a conspiracy theory. it just happens to be the case. for example, if the crisis in greece takes away the heat from the italian or spanish political elite then crisis

germany will front out of greece and greece will go out of the euro.short run, that may be a bit bumpy. as a medium to the long term, it is more comforting for holders of euro assets. should degrees and possibly one or two others have been in the euro? >> should be there or shouldn't be there a you are centralizing with a doesn't matter. >> it makes it harder. >> you said holding your assets, we should not be fearful. it doesn't matter. >> i think it is a benefit. it makes the euro harder like a deutsche mark. >> a pandora's box. >> on a longer-term, we have to see how the politics plays out. the ecb and brussels and others will be able to contain it and greece will be the sacrificial lamb like cyprus was last year. nobody expected that to happen. >> spain, ireland, and the radicals may come fourth. >> if greece is shown the door, the consequences of their folly will be shown. u.s. economy is overplayed as well. the interest rate differential will start to narrow. german interest rates are as low as they can be. you can not -- you can see a benefit. al

cnn, athens, greece. >>> the election outcome is causing concern about greece's future if the eurozoneeuro did s down in early trading. we have all the numbers from abu dhabi. we're joined now live. john the immediate reaction in markets to the win of not positive. what specifically are investors concerned about after the victory? >> reporter: well i will say investors are listening carefully to when alexis tsipras was saying. the first word uttered during his acceptance speech was that the troika for greece is a thing of the past. basically suggesting they might be looking for an exit strategy. in a sense the euro down to 11-year low again the u.s. dollar now trying around $1.10 and change again the euro. and this could cause disaster to be very very candid and put the 15-year euro project in question. now what he wassing issing here is that -- was suggesting is that you have the european union, international monetary fund tropics athe package greece has had since the crisis three years ago. but this vote and no doubt about it was against desperation. a vote against a german-led auste

let's start with greece. dire figures, 50% youth unemployment. 25% unemployment overall, an economy clearly still on the ropes. and now on this vote it seems to reflect the anger of the are geek people. they have elected a left wing party, likes of which europe hasn't seen in a long time. how different is this new governing party? >> it is quite a dramatic moment in modern greek history. this is a decisive victory by the syriza party. obviously, the greeks have gone through a terrible experience with depression and 50% youth unemployment over the past several years and syriza has a lat form to return the social welfare state and the programs this were done away with during the period of austerity. that ambition of the new greek government is going to clash of course with the germans and the others in the european union, who say the greeks must adhere to their debts. and right now it looks like two immovable forces are going to meet each other. which is going to blink, which is going to compromise, one would h

now, the new unknown, greece.or more on the renegotiations with the eu, let's welcome barclays' chief european economist. we have a new government in greece and it is very difficult at this moment to figure out exactly what they want. they are radical, they mean business, but they may change once they see the machinations of the eu. the priority will be what no sanctions against russia? >> i think the story about russia is not really a priority. i think they are not used to the european process. they are may be surprised by the fact that there was a statement issued yesterday. on russia, we cannot say there is a single position in europe. there are many different views and there are some discussions. they try to come to a compromise. the new government has no experience about that. they need to learn about how european affairs are working. when you put 28 people around the table, it takes time to get used to the process. >> are you confident that they will get used to the process? you could also have someone that

coming up, more on greece and business. the new government expected to halt a privatization program. new york city has been spared the worst of a massive snowstorm. travel across the region has granted to a halt. thousands of flights canceled. it was not a liberation, but a revelation of horrors. that is how francois hollande has described the liberation of auschwitz. celebrations are being held to mark the celebration of the end of that day. survivors, he'd knowledge the horrors of the past while trying to reassure the jewish community of its place in the fibers of france. quicksilver places here. this is your home. you have given france your talent and labor. you have given her your courage and at times, your blood. our country would no longer be france if it were to live without you. if terrorism were to lead you away from the shores of france away from french language, away from french culture, away from the french culture that emancipated the jews, terrorism would have reached its goal. >> it was called the final solut

greece is part of the equation. we have team coverage in frankfurt and berlin. >> nearly two years after the boston marathon bombing the trial of the surviving terror suspect gets underway with jury selection today. is a fair trial possible? >> niuns risking their lives to care for children caught in bloody family feuds that go back centuries. >> it has been a rough start to the new year for the european common currency. >> it fell to the lowest level today in almost a decade on fears the european central bank is losing its ability to control inflation and deflation. >> greece is part of europe's worry; asian now with more political leaders saying out loud a greek exit from the eurozone maybe -- may not be the tragedy it could have been a few years ago. >> more on that in a few minutes. we start off with more on the euro slide. >> the european common currency continued its fall at the beginning of the week. monday saw the euro temporarily fall to $1.18. that is the lowest level since the beginning of 2006. since the

let's get straight out to greece.uy johnson and the beginnings of what we understand who will run the finances in degrees. i? >> it has come out on the personal blog. let me read to you what he said. it will be more infrequent and shorter but i hope they compensate with a juicy your views, comments, and insights. carry on his blo now that he has been named finance ministerg. he calls himself the accidental economist. it is interesting, the greek press reporting that yanis varoufakis have -- if i can get my pronunciation right had spoken yesterday after the eurogroup at meetings and maybe that is an indication of the conversation is already started between greece and the rest of the eurozone about what happens next with the debt load. he is going to be the finance minister and he has done so on his personal blog. we spoke to him yesterday on air and he talked about how the negotiations were to go. i spoke to him last night as he was walking out of the athens plaza hotel on the other side of the square. he seemed in goo

do you think it is more likely that she leaves greece or that she lets greece go, then let's the u.k.? >> that's very difficult to predict. i can't give you an answer to say what she's going to make on the 21st of january, if that is going to be syriza to turn the whole thing back to the old side. we have to wait. to predict something today, i don't want today are. >> michael fuchs, thank you so much. deputy chairman of germany's christian democratic union party. >> and testing to talk to michael. we mentioned the conservative u.k. party. the u.k. has a general election. we will be talking to all the parties across the political spectrum. >> coming up, the sport-utility vehicle bandwagon. with fuel prices dropping, is it time to own an suv? bentley is about to roll out one of their own that costs as much as 180,000 euros. the ceo joins us next. ♪ >> welcome back. you are watching "the pulse." >> oil prices have continued their descent in the face of a global supply glut. one expert told us the winners and losers are becoming increasingly clear. >> the man on the street may well be loo

people greece of knowledge greece of civilisation. if there's a winner today there's a winner. grease that fights on amist time in order to reveal the future of dignity. deer friends, i'd like to thank all of you. but first of all, i'd like to thank those thousands in every part of europe. we have representatives that came here to show their support and the solidarity to the break people that comes from every corner of europe. our victory is at the same time as a victory of all european peoples who fight against austerity. that destroys a common european future. for the common good of all european people i would like to show you that a government will be ready to cooperate and negotiate for the first time with our partners for a justified and viable solution in order to get greece out of the vicious circle in order to get back into stability, development and those values such as democracy and solidarity. and this honest conversation and negotiation greece i would like to reassure you will walk with solid suggestions a national plan of

. >> the situation in greece it needs -- in greece is the other story. it feeds across to spain and italy. if greece exits the eurozone, there will be no contagion? >> i do not think they will leave. we are getting bluster ahead of the election and german politicians positioning and readying for the negotiation after the election. no one in greece wants to leave the euro. there is a saying that they want to stay in the european union and not as much austerity. the germans say the two or neither. the contagion is interesting. markets are not looking, at the moment. if greece leaves, we will see mario draghi do what ever it takes to make sure the eurozone does not fall apart and the contagion is not touching bond yields, at the moment. >> you have german officials positioning themselves in greece and this is a question of the greek people. a decision not to go with the new democracy. it is staying in the eurozone or voting to exit. they are playing a dangerous game. >> they are not saying they want to leave. >> there is a decision to stay in europe or leav

a new anti-austerity coalition is formed in greece. the party joins force with the left-wing independent group. it's down to business. time to renegotiate the terms of the euro zone layout. >>> barack obama becomes the first u.s. president to become chief justice of india's public day parade. >>> people living on the east coast of the united states brace themselves for a huge snowstorm. >>> and making the history. this woman is about to become the church of england's first female bishop. >>> hello. greece's radical left-wing party has agreed to a deal that gives it enough support in parliament to form a coalition government. the agreement was struck after talks the between the leader alexis tsipras. they are seen as a right-wing grouping on the opposite side of the political spectrum from tsipras told the forces that that would not be a problem. >> now we represent the nation. all the greeks will be together. in europe. thank you very much. >> well of the greek parliament's 300 seats, syriza now holds 149. that is just short of an abso

and greece does not have much time. a deadline of february 28 for finishing the review with the imf and european partners and ecb. and that, whoever runs the government has to have in mind. >> many greeks believe talk of potential as it from the euro is a bluff, a way for the government to perhaps persuade them to vote for the incumbent rather than the opposition party. do you believe the direct of a greek at the israel? -- greek exit is real? >> greeks want to stay with and a euro area. more than three quarters whenever surveys they yes, i want to stick with the area. they understand the euro area brings a lot of benefits. they shape of the country and give future to the economy, to his politics. leaving the euro area is not as thoroughly a bluff. an accident could happen and the whole idea is to avoid it. >> it would be some accident for greece to stumble out of the euro in that way. it was interesting the way the finance minister saying if the government is reelected, it would be a boost to the greek economy. he pair

greece's new prime minister, alexis alexis alexis has promised to negotiate with greece's creditors. he has been given 2 billion funds by the european community to shore up the bailout but itthe terms are not popular in greece. there had been thoughts he would bailout on the money, he said there will not be any irresponsible actions. what that is we will speak to our correspond damien. stay tuned for that. >>> and clashes on the border between israel and lebanon. israel says one of its tanks have been hit. silver has fired across the border and the situation is said to be ongoing. in the meantime, we can join our correspond. damian grammaticas. it feels like the lines are being join ded mr. tsipras saying we won't default but will not negotiate. >> reporter: yes. the sides sizing up taking gentle steps towards each other before they engage. there will be positive steps taken with greece saying it won't default on its debt. that will be very very welcome. at the same time saying greece will -- he wants to restore national sovereignty and saying greece will negotiate responsibly, that

he has no intention of pulling greece out of the eurozone. on monday, the eu commission refused to speculate on future negotiations over greece's debt payments. >> there will be no further statement from the commission for some we are waiting for the vote on the 25th. >> germany insists it does not want greece to leave the eurozone. >> the policy of the german government and its european partners is to stabilize and strengthen the eurozone, meaning that members of the eurozone including greece. and that has not changed. >> angela merkel believes the eurozone would cope without greece. >> it was a bit of a blood last -- bloodbath. >> that is right, seeing some of the worst figures in a week. all indices are down by over 1%. figures from u.s. carmakers that were more were encouraging -- that were encouraging, but not able to stay bostick lines. the s&p 500 down by nearly 2%. along with legal uncertainty in greece, the other major factor is falling oil prices brent crude fell to its lowest level and oil companies were down. it may harm the oil g

greece doesn't have much time.a deadline of february 28 for finishing with the imf and the european partners. whoever runs the government has to have that in mind. >> the comments we heard from the economic advisor with you guys saying there would be compromises in the end. that would seem to reinforce with the finance minister was telling me yesterday. >> as you were alluding to, he is not a politician. he is not a member of the democracy. he thinks the economy is safer in the current government's hands. >> not just because they have more sensible policies and would be less confrontational with the creditors. they may want to ask -- tweak some of the debt. he thinks because investors know who they are dealing with it will be better for the greek economy overall. >> if we win, the expansion will be huge. the markets will take off. contracts will be written. investments will flow. i think we will be surprised positively. >> if you don't mimic, will that mean investment -- recession? >> i can't talk for the oppositio

let's begin with greece.fter five years of austerity measures voters now essentially saying enough is enough. >> millions of greeks headed to the polls sunday and in a major shift voted in the radical leftist party. the leader and likely next prime minister alicks is tsipras promises to raise the minimum wage and renegotiate the terms of the bailout. >> translator: greece is turning a page. greece is leaving been a catastrophic austerity. it is leaving behind fear and autocracy, and it is leaving behind five years of humiliation and pain. >> now with nearly 100% of the votes counted, tsipras received more than 36% vote but fell short of the 151 needed to rule on its own. it will have to form a coalition. to get more let's bring in our reporter from athens. she's been tracking the dwms as they've been coming. with an outright majority out of the question, what can we expect the syriza party to do? what party might they aline themselves with considering reform is what brought them in? >> reporter: at the moment

is greece distressed? >> i do not think it is extremely distressed, and the relatively muted reaction of the market to the fruits of victory lays out that this is not as much as the media likes the headless -- likes to hype this -- the far left extremist party if you look at the economists behind them, you are not talking about far left. you're talking about people voicing illegitimate -- >> there was a movie in my youth called "z," which was a hugely popular movie and was shocking about the left in greece at the time and the brutality of it. this is nothing like me dynamic in athens. >> the relevant thing is to talk about some of the key people. you have citrus -- seecipras former communists. they are much more like -- >> thank you. could you make a banner of that. "more like lula than chavez." that is brilliant. >> absolutely. all the rhetoric is tacked way to the center. if you think about what these guys are saying, it is consistent with what mario draghi is trying to do. they are pushing back against

you think greece will stay in, which we think greece will stay in, then the numbers are going to be one or 2 million. >> just to give the viewers an idea, if i wanted to sell my holdings in greek debt, what would i have to do to get some of these moves we have seen? >> a handful of million euros. >> it could move 100 basis point? >> 10 million or 20 million would probably do it. at the moment, the market is very liquid for the reason that most of us, ourselves included believe there will be a resolution between the greek government and the european authorities. at the moment, what you've got is words going in that direction, but the actions don't back it up. until we see words and actions going in the same direction, that market will remain volatile. >> mike amey stays with us. up next noflation has dissented on europe. we will discuss the market impact with mike after the break. euro-dollar trading a little bit higher. ♪ >> welcome back to "on the move ." i'm jonathan ferro live from london. we have to talk about inflation. we've got a read on prices of the eurozone. at 10:00 this morn

let's get back to greece.d at the start of the show that the consensus view is that the greek problem is that we are not seeing fallout in other markets. is that what a false sense of security is, in your mind? >> i think that is wrong. portugal, italy, and spain are tight. i do not think a greek crisis could be isolated. we have more firewalls. keep in mind the similar countries with issues and they are not seen as a risk, at the moment. there is a lot of complacency here. i do not think it is. >> some have disputed that. what is the catalyst for the fallout in the markets? do they have to win and something has to happen for the contagion to take place? >> it is about timing. investors are now waiting for the big buying of sovereigns. nobody wants to short ahead of that if the supply is relatively flat and you know they are going to buy a large amount of sovereign bonds or other things like corporate bonds. once they launch the program there is a high risk of compromise within the solution because some board

that also the leaders, they are conscious of the place of greece in the eurozone and needs greece. >>inal results coming through for all the votes to be counted, but so far, this is a big game changer for europe. it is at an 11-year low, the euro. we shall find out. i am tracking developments in the bond yields and getting asian reaction, as well. >> absolutely, we are going to watch that. we are joined right now from athens, in fact, and joe is a managing editor of bloomberg markets online for the action on the ground. joe, what can you tell us? >> yes, it is a crazy night here in athens. there was a massive rally. it's sort of had a rock concert-like feel to it. there is a sense of victory among those on the left, the likes of which they never really experienced before. >> i mean, it is one of the youngest -- in fact, the youngest leader in greek history. what is the expectation? >> well, people think that some sort of rational conclusion will prevail, that europe does not want to greece to leave the eurozone. do notople in greece want to leave the eurozone, so to some extent, there

concerns over greece.f greece were to default on its debt spain italy, and portugal have elections this year and how would they react? they also have heavy debt. we will see how it develops. >> right, japan has indeed got as our record trade deficit despite rebounding. exports off of a act -- off of a weaker yen. mentioned the exports. >> experts did rebound. 12.9% in december, a good, nice strong rebound. >> looking at the whole year. >> whole year trade deficit, ¥13 trillion and we saw a deficit narrow to ¥660 billion a but not enough for the whole year trade deficit which widened for the third straight year. we are seeing their trade attorney negative in 2011 for the first time in three decades after the crisis, forcing to shut down. even though the trade deficit didn't narrowed to ¥660 billion, it was not enough area -- enough. exports rebounded to 12.9% in december beating analysts' estimate. especially the united states up 24% year-over-year. >> the u.s. rebound as well, i suppose. >> also about to t

>> i think greece will. i hope greece will.s important not only for europe but i think for the whole global economy. the policies that europe has foisted on greece just have not worked. gdp is down over 25%. that's worse than the u.s. great depression. youth unemployment is 60%. and it's been that way for years. can you imagine a society where you -- to use the phrase that people talk in the united states, you play by the rules, you work hard. you can't get a job. >> do you think the euro unto itself is a failed experiment? >> it was a mistake in the beginning. that to me was clear. that was clear. your only question right now is can they make it work? >> should they try? >> i think they should try. but they can't using the same medicine that hasn't worked and failed in country after country. if greece were the only country facing a problem, i would say, you know it's greece's problem. >> but if you're living in germany and you're working your tail off watching what's going on in greece, what are you supposed to think? >> there

right now, the program that has been enforced in greece has said that greece has come up with 4.5% of surplus to infinity. this is unrealistic by any economic imagination, to have 4.5% primary surplus forever. you want to say immediately you have 3.5% of gdp leeway about 7 billion that you can play with. then, the economy can start. both governments have to give in. right now, we are on a collision course. >> ok, let's wrap up i thinking about that. if that collision happens, what is the outcome? i was sitting at a hotel the other morning in athens with a german economist who said that he arrived in athens with a 35% chance of an exit but everyone is telling him that number is way too low. >> i don't think that is the narrative of europe, or let's call it, the global order. i think today, the bank of england came out and said, you have to change the austerity. the danger in greece is that germany and europe changes the anti-austerity policies but greece is not part of it. >> what do you mean by that? >> that it is not going to receive the benefits of that change in policy. >> does tha

do you expect any changes due to the situation in europe in greece? >> well to begin with they weren't going to contemplate changing policy until the middle of the year anyway so they won't -- it won't affect anything now. if similar things are going on, though in the middle of the year i suspect it will delay the feds' beginning of normalization of interest rates. already what's been going on over there has pushed our rates down instead of up. and our rates are still considerably higher than european rates, which are negative in many cases on the short end of the yield curve. so we're getting headwinds from a weaker euro and tailwinds, unwanted tailwinds probably from interest rate arbitrage. >> the stronger dollar means american companies might not export as much as they otherwise would to europe and a weaker euro means european imported goods cost less. that's exactly what the fed doesn't want low, low, low inflation, an economic situation that's in the headwinds, right on the bow. >> you're exactly right. in normal times, those things would be goo

out of the european currency, the euro. >> the last time greece is the last time greece was on verge of default or dropping out of the euro zone back in 2010, european and u.s. markets got hammered and that battered u.s. retirement plans too. the euro is down in asian markets amid fears of a showdown between greece and its creditors. a >> glor: and charlie, that means a showdown with german chancellor angela merkel, what can we expect from that? >> there is a big difference between campaign rhetoric and reality, yes.y, tsipras wants to rip up the deal, but he's softened his tone to use $300 billion debt, just yesterday chancellor merkel said she wanted greece to remain partd of the european story and greece has begun to make progress. both sides have a lot to lose if greece drops out now. >> glor: charlie d'agata, thank you very much. protesters gathered in tokyo after the apparend execution of a japanese hostage by i.s.i.s.s the crowds blamed prime minister shinnzo abe and his foreign policy. at least one other japanese man, kenji goto, is being held by i.s.i.s. ke the arrivals are

markets fear that little greece will send outsized shock waves throughout europe, especially if greeces forced out of the euro to enzone. for more on greece east new prime minister and his road ahead, barnaby phillips has this report. >> reporter: he is leading a social revolution as well as a political one. he's just 40 years old. the youngest prime minister in modern times. he is also the fifth greek prime minister since 2009. economic chaos has made for turbulent politics. earlier he invited a small right-wing party the independent greeks to form a government with his party. they don't have much in common, except for a determination to reject austerity policies imposed on greece. it's a new political landscape. the old guard swept away. the time of expectation but also fear of what comes next. here in the greek parliament, the new coalition government should now have a stable majority. at least for the time being. but the really difficult negotiations lie ahead, and they will be with other european governments, the european central bank, and the imf. a far-left victory could be cons

it is a crisis that was chosen, basically imposed on greece by the european union, which forced greece> whether the success of greece >> whether the success of this leftist movement in greece has the potential to spread across europe. joining me now economist and professor, he published a paper with his former colleague, who is the new greek finance minister about how to bring greece from the eurozone back from the brink. professor, basically greece had huge debts. they couldn't pay those debts. the crisis happened. the revenue sank. they had huge debts. they needed someone to bail them out. the european power standings said we'll give you this if basically you water board your own economy. what does greece do now? >> two points. the bailout was not a bailout of greece, it was a bailout of greece's creditors who otherwise would have suffered losses. the conditions for doing that, which were accepted by the previous greek government were punitive in character, and led to the consequences that you described. and so what happened in greece, as you say, was that the population. >> as far a

so greece is an issue.e will have to see if it is rhetoric or if the greeks are opposed to new sanctions. it is not just that greeks. the germans as well. we heard from the economy minister, the leader of the junior coalition partner with angela merkel. he's said it is premature for new sanctions. so we are going to have to see. a couple of days ago before the greek election and looked like they were going to impose new sanctions. now not so certain. >> great work. dollar-ruble on the move. a stronger dollar, weaker ruble. we are back to the record those. back through 69. rick, crisis mode. for portfolio management. talk to me about that. russia, greece. what does it mean about how you build your portfolio? >> we look at a number of measures over the last two years to look at euphoria and crisis. we had him in usual year. the beginning of 2014 we are in euphoria for a long time. we need to be careful. we have scaled down bets where we have active positions and portfolios. ironically, crisis gives rise to op

that's a little bit difficult for greece because greece doesn't have the cash reserves to hold out.and august are going to be difficult months for greece when bonds come due. now the leader of [ inaudible ] who is likely to be the next prime minister said a sustainable mutually acceptable solution will have to have been found by then, and i'm certain it will be. in other words he is saying as prime minister i'm giving myself until then to see eye to eye with my european partners. >> it looks like it is so far ahead at the moment. what is the prime minister doing to try to turn things around? >> reporter: well his party has been trailing in the polls by 3 to 5 points in december. that lead has now widened, according to almost all of the polls to 6 or 7 points. however, we retained a solid 25 to 27%, which doesn't seem to be ready to abandon him. he has done a couple of things in a defensive sort of way. he has avoided a direct television debate with his opponent and avoided a television interview across all networks. however, he has been arguing on the basis of his record over the la

. >> a general election in greece.he markets already seeming to have cast their vote, sending the euro to a fresh low. >> the euro weakens to its weakest levels since 2006 in asian trading. that follows and magazine article that says german chancellor angela merkel is willing to accept a greek exit from the eurozone. and this makes it the european central bank in favor of large-scale sovereign bond purchases. >> ecb president mario draghi said the risk of deflation in the eurozone could not be entirely excluded. within that statement, of course, and other events, the greek election now has less than three weeks to run, and europe is facing a turbulent start to the new year. >> so parties in greece are campaigning, and elliott gotkine just got back from athens, where he was covering the election and he joins us now. good morning. exaggerating the risk of an exit? >> good morning, and happy new year. look it is not a bad political strategy to put the vote to voters. in this case, there is an anti-austerity party. they wa

we do have a lot of key event risks coming through in greece. elections in greece.ems a few years ago. >> everyone -- angela merkel said she could see greece leaving the euro. it doesn't seem to because into much of a fuss. is that shortsighted? >> it is a little bit. the new year holiday was shrugged off as europeans it's all political perspective -- people are looking at that picture. with the backdrop of deflation and slow growth in europe, maybe this political uncertainty could be a problem. >> we have the ecb decision january 22. mario draghi will launch full-scale qe? >> that seems to be what people are hoping for. we will have to wait and see. >> thank you so much. we are on the markets once again in 30 minutes. ♪ >> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> investors call a timeout. a timeout. little changed after four days of losses. >> a tale of two automakers. the other had a record year in the luxury market. speaking with the ceos of ford and rolls-royce. >> may be verizon wants to h

an air in greece. greeks vote no on austerity. the days of creditors demanding more budget cuts are over. >> who will break out of the pack? >> the footfalls were deflated. -- the football's were deflated. as the same thing happen to tom brady's image? >> we are back in new york city. >> it feels good. >> you have to be tired. >> i am hired. >> this is going to make the show entertaining. we are here to deliver you the most important news. the top global business stories of the day. greece on a collision course with the euro area neighbors that came to its rescue. greek voters were unhappy with the year of job cuts and tightening that followed the bailout. the prime minister elect made it clear what his top priority would be. >> the verdict beat -- and beyond any doubt. the bailout agreements of austerity and disaster. >> it forced negotiators to -- the bailout. this makes no sense to me. mattel says the chairman has resigned. hillary clinton may begin her campaign for president in april. her husband may be involved. part of the s