mario draghi says ball is in greece' escort. the finance ministers are planning a conference call today ahead of that meeting on thursday. that is something to watch out for. that was surrounding a story in germany that suggested the eurozone ministers are getting closer to coming up with some sort of emergency plan for any grexit situation. as you can see the euro bounced and we are at the 112 mark. that takes us to our twitter question. in terms of following the great -- twitter story, who should make the next move to resolve the greek crisis? let's recap the u.s. markets. european markets were week as a result of the greek news flow and that fit into the u.s. session. we had manufacturing data out of the u.s. which missed estimates. we had two days of fed meetings that start tomorrow. no change in interest rates expected but that is on the radar. looking at coverage today, what we have got on the block for you a real focus on the aviation industry. with the 51st paris air show kicking off in paris we will be speaking to pratt

as of the last conference, mario draghi was cool. to some extent it shows an inflation expectations are rising and qe is working. if you make 10 year spanish bonds rise to the average level of hunting for the government you are undoing qe. if italy is going to pay more than it was, then basically they can spend less. fiscal tightening on on voluntary tightening. the ecb have to care. jonathan: when is it? ecb officials in a speech said i do not want to give the market a free pass. at some point, they have to care. where is it? 3%, 4%? alberto gallo: the point where you are funding as your average cost a you are not saving more money. even though i have to say after these levels, high volatility can still hinder spending and investments and make more concern about investments. you are really having a bit of monetary tightening. banks that were landing in january and february are cutting their loans again. they are saying volatility bob banks are landing and now they are not. jonathan: lucy, this good news for the bond market it means

mario draghi says get used to behind in volatility. a deal is in sight, according to alexis tsipras. he says don't worry about the payment. coming up in this show from the world economic forum we will catch up with the south african central bank governor. at 8:00, you can watch that. i am looking at futures. dax futures up by 45 points. european markets just opening up. manus cranny has that for you. manus: this is day three of the decline in the european equity market. let's take you inside. we have a couple of big calls. london is down. volatility, if you look through the day three of the stock market dropping volatility -- traders believe in 3-6 months you will see less volatility. alexis tsipras had a swagger in his departure in the news conference when he said the bill was paid. they say the stoxx 600 will be up. let's see what is driving the system. you have the national grid down 4%. you have nice load factors. the total volume of passengers is up over 6.4 there is one thing that is driving this as mario draghi said get used to

in 30 minutes we will hear from the ecb president mario draghi. there is a lot to watch this morning. before we get to the big numbers, top headlines just for you. they're are not calling it an ultimatum. they will present what they described as a proposal. they will meet with the head of the european commission. the new proposal will focus on policy they must adopt if they want to avoid a default. open to get feedback on a greece proposal submitted yesterday. the plan was simply not sufficient. meanwhile, cutting its growth forecast it is one of the main reasons. the world economy will grow 3.1% this year. it is down from the 3.7 percent growth last forecast. greek crisis is hurting overall confidence and it also says business investment is lagging. erik: u.s. prosecutors are looking into sepp blatter as part of their corruption investigation. he has not been charged with any wrongdoing. he stunned the sports world yesterday announcing he would resign as president of fifa four days after being elected to a fifth term. collects although the member

this is exciting because we see what happens when mario draghi's weeks. is stock and about the economic data coming in better the next acted. hinting that inflation targets are on track. that is him talking. we write up 1.12. take a look at the pound. -- we end up 1.12. this was disappointing pmi data coming out of the united kingdom. looks like it has claimed back most of the losses ending right about $1.53. back to you. making fed debut in hong kong, rising 6% on the first trading day. it is one of two entities created as one of the richest men re-created his empire. he is known as superman and hong kong. more from hong kong. >> hong kong's property combines the real estate to main companies. essentially the realization created the property and another company. he unveiled his plans and said it would allow them to more easily choose between a regional property business and expanding global assets in more than 50 countries. he held assets around the world. of the net assets are here in hong kong. 32% are in mainland china according to j.p. morgan chase.

i want to talk about this "ft," mario draghi pointing bund yields up with his finger. what does the financial ferro say?is this due to comments from draghi? jonathan: get used to volatility is different from get used to 100 basis points up. you can have swings in prices but a backup of 100 base points is different. everybody talked about draghi's comments on volatility. he had a comedy about monetary policy accommodation. i think that is the story down the road. does he really want to fight the bond market? a backup in yields is the big story. brendan: i find it instructive that not yet have you said the word greece. jonathan: trying not to. as far as the bond markets are concerned, and the midst of the global bond markets -- i don't think it matters. tom: the headline for american viewers waking up is equities futures -13. can they catch up with currency and bond? juncker had a good headline. draghi moving the euro stronger. we've got another leg up. vonnie: the euro of trading at 1.1349. apart from the imf payment, we have nonfarm payrolls. tom: the jobs report as wel

mario draghi said greece must take the necessary steps. the european court of justice ruled the ecb's scheme is legal. kuroda's you turn said he was not trying to influence the yen when his remarks sent the currency climbing. francine: welcome to "the pulse ." i am francine lacqua. also coming up we will be hearing from some the biggest names in aviation. the ceo's of airbus and airasia will be on "the pulse" this morning. greece's finance said creditors must take his country's proposal seriously if they want to break the deadlock. after the european central bank president mario groggy said greece needed to take the necessary steps and the ball was squarely in the greek government. to get more we are joined by hans nichols in berlin. what are the creditors' plans and greece's plans and how far apart? hans: they seem far apart. we see a lot of reports at least one important report talking about plan b if there's going to be an exit and capital controls on greece. and the greek plans and according to mr. varoufakis editor interview is we wil

good news for mario draghi today. athens is making progress with a deal on his creditors. >> let's bring in the fixed income strategist at ubs. particularly focussing on the fundamentals that inflation is ticking up. does that make today's press conference even more spicy. >> could, couldn't it? it's clearly the case that things are moving in the right direction in the euro zone whether it's the underlying economic data or inflation but it brings with it fairly mixed implications for bond markets because qe has only recently begun and it's expected to go on for another 18 months. if there's any hint these improving inflation dynamics might slow the purchases down then the sell off could only be the beginning of it. >> the last time we saw these types of moves which manifest in the indicator being the german ten year going above 0.7% again we saw the ecb come out very quickly to say bond buying will continue. in fact it will continue at pace. we'll even bring some of it forward. can we expect him to echo the same senti

we asked will mario draghi's qe sure europe? let us know @bsurveillance. ♪ tom: good morning, everyone. a very busy morning here at "bloomberg surveillance." greece and everything else going on. here is vonnie quinn. vonnie: in boston, a man under surveillance by terrorism investigators was killed in a confrontation with police. authorities say a videotape shows the suspect munged with a knife at a police officer and an fbi agent. they say they wanted to question the man about terrorist-related information. another man has been arrested in the case. instagram is about to get more commercial. the photo app will now open itself to more advertisers allowing companies to link directly to actions. users will be a lot of buy a product with a tap or a download . jamie dimon helped build two of the world's largest banks, and that has made the jpmorgan ceo a rarity. he is a billionaire. his net worth is about 1.1 billion dollars, about half of it in jpmorgan stock. he also has an investment portfolio jumpstarted by the sale of $110 milli

a very uncomfortable position for mario draghi at the moment.omething he will have to address at the press conference. guy: what do we know about mr. tsipras' movement tonight. seems to be confusion about whether or not there's is a big meeting taking place with dijsselbloem and tsipras and other organizations including the ecb, possibly. there seems to be competing information floating around. vassilis: a greek government official said there would be no meeting between tsipras and dijsselbloem today. probably jean-claude juncker invited dijsselbloem but prime minister tsipras said he's not going to be present in such a meeting. yesterday we had a paper id greek -- by the greek government andimed to mr. dijsselbloem he said greece is not aimed at a deal. the paper said people should be working towards a deal. guy: an interesting day. vassilis from athens paul from frankfurt. hans: live coverage of the ecb decision at 12:45 u.k. time, followed by a news conference. ♪ guy: quarter past the hour. you are watching "the pulse," live from london. it's

journalists asked mario draghi so many questions about greece. he was professional and only said what he likes to say. mariota made important statement -- mario draghi made important statements. he increased the pressure on prime minister tsipras to find a solution. he emphasized he will stick to the ecb policy. that is good news for investors. there are rumors out there recently that mario draghi will exit earlier from this program but he denied that. that was one reason why the dax climbed higher today. host: here is the market numbers. germany's dax 11,419. eurozone up by more than half a percent of today's session. in new york trading is still going on. the dow is up by half a percentage point. the euro gaining some ground currently, one u.s. dollar. host: taking a short break. they said it would be faster and better than ever and they weren't lying. host: the new and improved large hadron collider, the world most powerful particle smasher. more on that after a short break. host: stay with us. host: welcome back. injection president -- the eg

stephanie: mario draghi speaks and the world listens.dent mario draghi forecast faster inflation in the euro area. we saw from a width more. traders -- lisa abramowitz is here with more. lisa: he was supposed to come out and say i'm going to accelerate qad. we're going to bring yields back to 0%. he said get used to it volatility is here to stay. it pushed people over the edge. there has been the worst two day selloff in general -- german bonds in the euro area's history. $388 billion erased from the sovereign world bond index is the end of march. these are big losses on paper. how much actual selling is there? are big bond investors actually selling their holdings? the volumes and colors i'm peering from traders, not really. this is a lot of marginal buyers. people who are invest -- think about the scenario now. it is not just german bond yields. it is also the dollar. the euro. how about all of those macro hedge funds that are levering up cross currency bets? a lot of different trades that are in here that are not hard-core institution

presidententral bank mario draghi that any plan must accomplish several goals. there should be a strong agreement and a strong agreement should be one includes fairness, but is also fiscally sustainable. pimm: recessive has submitted his own proposal and one official told bloomberg is not good enough. blatter may have more to worry about then who is going to succeed him. investigators are looking into him as part of the ongoing corruption investigation. he has not been charged with any wrongdoing will start meanwhile, interpol has put six people accused in the scandal on the most wanted list. bloomberg news reported about identity theft problems and one victim, when he tried to find that how much data of the thieves it actually stolen, the irs said it was on 104,000 taxpayers and use that to get $39 million in fraudulent returns. and you have to pity poor warren buffett. he's no longer the second richest person in the world. according to the billionaire index, a spanish retail baron armand ortega is now worth more. ortega pioneered the concept of fashion retail a

mario draghi: you cannot interrupt. >> at times, there was more heat than light during druggie's -- draghi's statement to the european parliament. nerves are fraying as the deadline moves closer. mario draghi: while all actors will now need to go the extra mile the ball lies squarely in the camp of the greek government to take the necessary steps. reporter: in the end, the outcome of the talks will be decided by politicians, not central bankers. both greece and its creditors want to avoid a grexit but some economists think a switch back to the drachma could be a way out of the crisis. >> print would become cheaper for greek citizens. they would buy their own -- greek products would become cheaper for greek citizens. they would buy their own. reporter: the lack of progress on the bailout negotiations weight on athens' benchmark index, falling over 5% following a similar drop on friday. greece, it's creditors, the ecb and investors are all hoping a deal can be reached before it is too late. sarah: across the european financial markets, there was already an immediate signal as to where investor

mario draghi commenting in a statement saying "the eu should safeguard the irreversibility of the euro." should we do that at any cost? peter bofinger: not that any

i spent time with mario draghi and he is doing everything possible to keep funding going into the central bank of greece to support the banking system.

we have mario draghi saying get used to that volatility. secondly an upgrade to inflation expectation and thirdly there's optimism about a greek deal being struck. let's have a look at euro dollar too. it's also very closely linked to bund yields. is the euro driving bunds or are bunds driving the euro. we've seen that big strike roughly 20 minutes ago. we're higher by 0.8% on the day. quick look at european markets. the equity markets that is. we're seeing the sell off continue. ftse 100 off. the dax losing .18 and the dow down by more than 2. >> still to come deal or no deal as greek uncertainty weighs on europe. we speak to france's economy minister in an exclusive interview. worldwide exchange is back in a couple of minutes. heroes charge! ♪ ♪ (lightning strike) ♪ (kiss) ♪ lead your heroes in the hit mobile game download heroes charge now! thanks for calling angie's list. how may i help you? i heard i could call angie's list if i needed work done around my house at a fair price. you heard right, just tell us what you need done and we'll

there is expectation we could hear positive news from mario draghi when he takes the podium 9:30 eastern time to give his quart early -- quarterly testimony on the eurozone. dollar is up against the euro. darrell expects that draghi will come out with positive news on the eurozone and perhaps send the euro higher around the dollar lower. there is a look at currencies. we're expecting weakness for the broad stock market as it began, overnight in asia and europe as well. >>> some united airlines passengers forced to make unexpected detour leaving them stranded at a canadian military barracks for over 22 hours. nicole petallides with the story. good morning to you. >> good morning, maria. no one wants this situation. passengers on a united airlines flight from chicago to london after the flight was diverted to goose bay, canada, for mechanical reasons. they were forced to stay the night on cots in military barracks. that provided little shelter t was near freezing temperatures in that area. passengers complained of the poor a accommodations while united airlines employees left comfortably i

mario draghi -- but just to .3%. draghi said you should continue to see right through the next couple years. mario draghi: the impact of the lower euro exchange rate and the ascension embedded in futures markets of somewhat higher oil prices in the years ahead, inflation rates are expected to pick up further through 2016 and 2017. alix: the ecb has jumped started europe's economy with $1.2 trillion quantitative easing program. draghi center is no need to expand and. scarlet: the federal reserve releasing a snapshot on the u.s. economy. the so-called beige book says the us economy expanded in the past two pot months, even as manufactures to gain it from a stronger dollar and slowdown in energy-related investment or four of 12 that districts reported moderate growth. three others report expansion is moderate. officials will hold the next and june 17.ne 16 alix: or lou today, we got a snapshot of how the labor market is doing. the adp report says american committees added 200-1000 jobs last month, slightly higher than e

and then mario draghi coming out with a press conference saying that there will be no slowdown to be qe. alix: this came on a day where the growth forecast was cut to 3.7. no more disinflation. oe: when does anyone listen to them? alix: we didn't take a huge deal with greece today. i crunched numbers and found out how much greece actually hasn't been given in its second bailout over the last few years. this is for perspective, 7.2 euros. is happy change. they already and all of that. we are looking at 203 billion euros in a0 billion rescue funds, just hate it. joe: the money is not the issue. it is politics. can the german government tell it taxpayers that they will bail greece retiredle earlier land them, has these great pensions. they are thinking, if we change the rules for greece, then everyone can change the rules. alix: let me highlight something that was said, it blew my mind yesterday, about how much germany may need greece in the euro area. we look at net exports of gdp for germany, they have been increasing. weakeill do better with members inr the currency bloc, because the

mario draghi coming out. people saw this as a pretty dovi sh press conference. was that thisy came on the day when they cut the forecast to 3.1% as opposed to 3.7%. we feel better, no more disinflation. joe: since when does anybody listen to them? alix: i do. you were saying that greece is a very popular topic for today. we did not see any huge deals coming out. i crunched the numbers here and out at how much greece has been given in its second bailout over the last you years for some perspective. 7.2 billion euros, that is pocket change. that is like toilet paper money. they have spent all that money. just pay it, man. joe: it emphasizes that it is not just about the money. if it was about the money, there is a central bank that can print the money. the issue is, can the german government tell the taxpayers that they are going to mail out greece when the perception is that in germany, fairly or unfairly, greeks retire earlier than they do and have these great pensions. that is the politics angle. then we are all in this together, we have suffered the last few y

mario draghi warns higher volatility is on the way. ♪ . francisco,on in san 3:00 p.m., 2:00 a.m. in hong kong. latest data in the fed shows the u.s. economy is growing, but is it fast enough for janet yellen to raise rates this year? and move over warren buffett -- ortega is the the second richest person in the world. we will explain his rapid rise in well this year. announces a standalone showtime streaming service to the latest entry into the changing media landscape. good afternoon. i am scarlet fu with alix steel. let's get straight to a look at markets. alix: we are looking at a slight rally underway, but we're still kind of in the world of flirting with those record high spirit currently, the nasdaq is floating around its record close level. you have the s&p off its closing an intraday high. sort of around their, but we have not been able to catapult higher. part of

president mario draghi is news conference will be front and center. for more, bring in a bloomberg team. we have hans nichols in london. paul, i want to start with you. what do you say about the bond market? paul: there has been some concern. in a speech that has become infamous he said it worries him where he's said the ecb would accelerate bonds purchases any months running up to the summer. in fact, they did so in may, i a extra 3 billion -- buy an extra $3 billion in bonds. the concern was not so much that yields were rising it is the speed with which it is happening. this is a concern to the ecb in the past, and again now. jonathan: as far as you are concerned, the bond market will be a big heart of this discussion. but the data? doesn't that leave him happier? paul: well he has said the economy might be moving in the right direction. either way, there is a recovery going on. draghi and his colleagues have been very plain on what kind of recovery this is. it is cyclical, it is not yet structural. it will be -- it will not be structural intel gove

mario draghi says get used to behind in volatility.ccording to alexis tsipras. he says don't worry about the payment. coming up in this show from the world economic forum we will catch up with the south african central bank governor. at 8:00, you can watch that. i am looking at futures. dax futures up by 45 points. european markets just opening up. manus cranny has that for you. manus: this is day three of the decline in the european equity market. let's take you inside. we have a couple of big calls. london is down. volatility, if you look through

is that that things are getting better or is that mario draghi will have to save the day? is mostly theit economies are getting better and that mario draghi is buying lots of bonds. france,issuance of germany, italy and spain for this year promised to q.e. in r5 europe. at the end of the day, they're there is the possibility contagion will go from greece to the rest of europe by other means than the bond market. we could see some price and see of uncertainty which will be the next country that has a banking crisis. ok, you'ret to ask, talking about contagion -- what is the liquidity event in the bond market? there is mass reduction. paul: it is just that we think that probability is lower than it was in 2010 to 2012. there is a lot better safeguards in place. the ecb is buying bonds, acting like a central bank of last resort. joe: speaking of central banking on the fed, we have the second day after the fomc, something fascinating happened wish -- which is that you had goldman had forecast a rate hike moving to december. to you had citi moving september. it seems to me and

one of the issues is to increase the inflation rate, because mario draghi absolutely wants to preventeflation, because this is very bad for economy. it means prices are falling, and people postpone purchases in the future. and many believe that greece will find a last-minute solution. anchor 2: that was anita at the stock exchange. the dax closed down, euro stoxx 50 also had a bad day, down by about one third of 1%. over to new york where they are still trending, the trend is also down, -- anchor: well, you show up for work and have your passport confiscated. and this barely covers your food. anchor 2: this describes the life of many undocumented workers. employers in the agriculture and fisheries sectors are the worst offenders. reporter: it is 5:30 in the morning in southern greece. these are undocumented migrants and if they are lucky, they will be able to get work on a local farm. this is an everyday scene. courts have helped expose how some migrants are exploited in greece. court officials heard the case of 20 day laborers who were shot and wounded. the cause of the altercation?

mario draghi says his stimulus plan is working. his forecast for economic growth in europe. startschicago blackhawks their series against the lightning, why it may have been better for the national hockey league if the new york rangers had made the stanley cup finals. a news that he shows even with new regulation, corporate earnings forecast that help determine the value of stocks are getting worse. ter hast seth blat announced his resignation, what is next for the organization, we spoke to the former chairman of england's premier league. we asked him if the 2020 world cup will still have been in cutter? >> that is never going to happen. that is a fundamental disagreement between everyone here in europe and south america i believe. i also think north america as well. joining me now from washington is bloomberg allen cap. joining me from columbia .niversity ray katz seth blatter says he is resigning but fifa is still in crisis management mode. what action do they need to take to best manage the crisis? >> the first thing they probab

the good news for european governments, should we be thinking mario draghi for all of this? naeem: we should be thanking the bond, the ecb quantitative easing. yes, there is a major question, one mr. draghi is going to be facing, number one we need to hear something about the bond yield because as you remember, we had a massive rat in the bond yields and mario draghi has not said anything very clear about this, ok, how is it going to react, because ecb qe has -- as you said, it is hard to get growth in the eurozone, and this is one of the reasons, along with many other reasons, such as repositioning and the lack of liquidity in the bond market which actually started everything, but the primary element or the denominator remains ecb qe, which has produced growth in the eurozone and then we had the bond yields going up. stephen: and another big factor helping those things along. naeem: absolutely. if you look at the core part of the inflation, you see the elements of oil, which has stricter weight. at the front end of that curve is steep that means ok, the oil price has gone u

mario draghi sees no reason to adjust the policy stance in response the a recent rise in bond yields. key european indices ended higher. then on wall street stock prices closed higher there too, the dow jones industrial average gaining more than a third of a percent. the tech-heavy nasdaq rising a fourth of a percent. ramin mellegard joins us live from the tokyo stock exchange. what are you seeing this morning? >> the indexes in the u.s. and europe are helping, ending in the positive. and we also saw the dollar rising against the yen which should help exporters. but let's look at how the nikkei and the topics are kicking off this thursday june 4th. up .27%. the highs were dented a touch after two days of declines. but with the dollar regaining the 124 yen levels that should cheer investors here which it seems to be doing so far. another positive was the private sector jobs data which comes before the main jobs number friday in the u.s. and that showed an improvement from april and the u.s. trade deficit narrowed sharply in april as well which is giving hopes for second quarter gdp gro

>> despite the ongoing troubles with greece, mario draghi is likely breathing a small sigh of relief after the european court of justice ruled that the ecb's bond buying program is legal. brian: a group of german eurosceptics sought to block that program. they took it to germany's constitutional court and asked the court in luxembourg to give its opinion. >> three years ago, ecb president mario draghi calm volatile markets and nervous investors with the statement of resolve. >> the ecb is ready to do whatever it take to preserve the euro. and believe me, it will be enough. >> part of the rescue program and clute's -- includes omt. it allows the ecb to buy unlimited bonds to prevent a default. it has never been used, but the central bank still sees the ruling is a big victory. >> the ecb is operating within the framework of eu jurisdiction. >> there are strings attached, though. the luxembourg court says the ecb cannot announce its purchase of bonds in advance. the bank was also buy them on the market and not directly from countries. but critics of the rescue program say these restric

ecb president mario draghi signaling a little slack in its fiscal target. it seems the folks we hear from seeing positive, especially on the greek side and this is going to go into the g7. in fact, there may be talks overnight tonight. this will likely continue. the traders, sandra, overall they are stuck in see how. also the national bank of greece was higher. so they are batting a deal comes through. sandra: but that is something with it done. however, so much weakness in europe this morning. all down more than a 4%. in fact the cac down more than 10% with skepticism by the actual deal. nicole: you have to remember tsipras was elected on anti-asperity. if you can too much, will there be new elections in greece? the risk of another mess up their. sandra: all the weakness in europe and in the u.s. down triple digits overnight. taking a look at today's potential market moving data. in addition to stories, you'll notice a theme. it's all about jobs. at 7:30 a.m. eastern time, monthly report on corporate layoffs from challenger gray and christmas. an hour afte

erik: mario draghi has been speaking and vonnie quinn has headlines for us.eresting to hear him. he is saying he has proven to be confident. interesting choice of words. he is been telling parliament a. of higher volatility -- a proto-of higher volatility has been verified after a crisis program. also hearing from mario draghi that the ecb has approved to use if needed if there is extra volatility. we are at 112 .33. as for yield him and not much movement. the german tenure boomed is about -- was about 80 basis points before mario draghi started talking. erik: thank you very much. the latest from mr. draghi. reggie, we touched briefly on the bond market liquidity debate, gathering pace. martin gilbert was here earlier telling us that his firm is preparing for the possibility of a bond market selloff by raising credit lines with its bank lenders because it does not want to have to re-dean into -- read team into a down market. -- redeem into a down market. what happens to fixed income etf's as the bond market sells off? walk us through what you think is going t

marioe of the reasons draghi brought forward. had yields on the two-year breaching this -.2% which makes it eligible to buy. there was a steepening where wall street ended overnight. 10 points of the record close. angie: thank you. coming up, sensitive transactions. first up back after this break. ♪ .ngie: it is 7:30 here it thousands of hong kongers are preparing to mark the 26th anniversary of tiananmen square. june 4, 1989. we are 30 minutes away from the open of trading in japan and south korea. you are watching first up. the top story, the greek prime minister says he is optimistic of a deal with creditors. the head of the eurogroup says the meeting was good. they are still arguing on budget measures and changes to employment laws. an agreement may be struck within days. of a formeridence fifa official saying bribery was right an in bids. the transcript from the hearing has only been received and unsealed. he and others agreed to accept blacks in conjunction with -- except bribes in conjunction with the south african world c

this monday, janet yellen and mario draghi will most likely chat. this is "bloomberg surveillance ." it is monday, june 29. i'm john tom keene. joining me, vonnie quinn. you and i, carl, in the last two hours have talked about not overselling a market plunge. >> it looks like we have a fairly solid buffer in place, so obviously we did see a reaction in the euro and a reaction in equity markets. that seems to be deteriorating as the world wakes up and processes the news. tom: we are doing better than we were 12 hours ago. vonnie: the dax is down 3.75% now. most of the euro down 1.4% versus the yen. why is that? tom: we saw that from thomas jordan of the swiss national bank. in a moment we will give you insight and perspective all throughout "bloomberg surveillance, including with our erik schatzker. here are top headlines. vonnie: the government of greece is doing whatever it can to make sure it's banking system does not collapse. it is also moving toward an exit from the euro. greek banks will be closed for six days, and the government has imposed c

mario draghi today kind of had the opportunity to talk bond yields back down.didn't really take it. >> and the euro. >> so if they're rallying for the right reason should we be encouraged? >> there are so many different event risks going into today, but investors took it all optimistically. the u.s. economic data has been good, nothing super strong, but when you look at auto sales, the fed beige back had some pretty positive comments. so on the u.s. economy, good but not great. and on photo ops from greece that makes them optimistic that a deal is going to to happen. that was the reaction. in bond yields mario draghi didn't really do anything to upset the apple cart. so you've got this massive rise in yields. the ten-year yield did break out. we saw the highest yields since back in november. >> but we'll see if it really moves out -- i call a breakout 20% since the past trading range. we're not there yet. we could get there, but it's moving for the right reasons. it's moving for reasons of perception of enhanced economic activity in q2 and q4. by the way charli

let's take a look at the mario draghi story of the day.alk up economic data, not too strongly. i do not want to put too much on there. he did not say much on quantities of easing on how much further he is going to go and whether he is going to end it sooner or later. he said that we are going to stay the course. a bit of a luxury, but you can putting the euro up a little bit and weakness in the dollar. one more look at what is happening with the british pound. you see, right here, see the big steep decline, that is negative pmi data coming out of the u.k. it is down just a tick. 0.8%. of itscally covered most losses. i will toss it over to julie. julie: we have some economic data here in the u.s. as well, adp reports the staging the big jobs report we get on friday, coming in better than estimated. services sector not expanding as much as had an estimated. about 13 expansion in months. nonetheless, on balance the economic data in the u.s. is being read at a positive. stocks are moving to their highs for the session across the board. the na

he spoke to mario draghi last week. sense ofve any contingency planning for a greek default?are european officials doing? bill: he is doing everything possible to keep the flow of money up, but it takes two to tango and the greeks have to give a little bit. where the greeks have their own problem, their own constituencies. alexis tsipras said that he would not touch pensions and one isthe key demands of the imf to have pension and labor reform. privatization is going to be taken care of. i think that is the big one. there has to be some give their, one way or another. it is one of those things where we are just going to go to the last minute. they may even find some sort of extension. i would say technical default, very possible. the greek people do not want to leave the eurozone. he did not happen in the case of cyprus. i think we will get some sort of agreement, but don't count it.on what people forget is that even n agreement,a the greeks have to live up to it. out, ini went to pick -- 2010, the greeks agreed there was a primary deficit of more than 10% to a primary balanc

mario draghi said he would do whatever it takes. verynd it will big transfer to greece and is will have very big consequences and will make it difficult in the future to arrange support for weak european members of the union. very big say a transfer. is that something the international creditors would sign off on? brown: there are two scenarios. either the merkel government caves in or greece repudiates. whichever way that goes, it is onng to be a big, long-term taxpayers. mark: just to reiterate. says the imf is responsible for criminal responsibility for his countries recommend. how does it help the situation? nicholas: it does not help at all. i would say that alexis tsipras is responsible for criminal inactivity. it is a gamble of whether greece not. stay in the eu or in the last five months, this government has used many tough statements of this sort, which alienated the european partners, the imf and icbc. what do international creditors want to hear at this point? what do they want to hear from the greek government and intern

s mario draghi warned of what is to come. guy: top officials took -- for almost two decades. guy: good morning, everybody. you're watching "the pulse" live from bloomberg's european headquarters. i'm guy johnson. francine: i'm francine lacqua. we're joined by a prize winning economist. we'll be talking about the u.k. greece and the fed as well. guy: let's talk about greece now. tsipras rejected proposals that would unlock bail-out funds. francine: following a meeting, tsipras said the basis for an agreement must be a greek proposal to avoid spending cut and tax increases rather than a plan drafted by creditors. guy: this was his reaction when asked whether greece would be able to make the i.m.f. deadline. >> don't worry. >> how many days until agreement? >> we have already paid 7.5 billion. francine: for more, we're joined by hans nichols and from brussels by ian. hans, let's start with you. you are on your blackberry when we come to you? hans: i would never check my blackberry. when you look at the public proannouncements, they are in opposite places. a lot of this optimism

to ed miliband terrific ecb decision day, the rate decision followed by a news conference from mario draghi to face questions about his $1.1 trillion stimulus package. this comes after draghi sat down with european creditors. paul gordon joins us in frankfurt. how much of a focus will greece be the governing council today? paul: it is certainly a factor. we have a decision on emergency liquidity, which rose by another half dollars yesterday. also the decision not to change the collateral. the banks are being kept afloat. there was a governor's dinner which can get the boisterous. it may allow policymakers to focus on the other big issues largely quantitative easing. the pace at which it will succeed. the increased pace in the run-up to the summer months. also, how to deal with the issue of small circle briefings. it is possible to move away from greece but it is not possible to ignore it. it hangs over the economic recovery. mark: how concerned is the ecb? we are hearing stories that will yields are the highest of the year. paul: it has been quite a rally. there are mixed views within the c

mario draghi said on wednesday volatility is there and get used to it. that is not the same as saying tolerate yields going up, do we need to extrapolate both things? steve: absolutely. i answer the question did you really think that five basis points for 10 years would get you there? we got there because of the previous miss calibration of the qe purchases. it was technical, not fundamental. that whole move below 1% started from september .14, that whole move was driven by the ecb. inflation expectations have been going up. the economic data has been better than expected. this was not driven by the economy. jonathan: the bond market had three things that drive yield inflation, expectation, and term premium. do you think that is the biggest driver, term premium? steve: if you are trying to predict where bond yields would go just looking at the real gdp and inflation, you're going to miss the biggest piece. the premium is riven by what the fed will do with its balance sheet, what the ecb is up to they are dragging yields down everywhere, and the greek sto

mario draghi seems to be intent on putting the pressure and keeping the pressure on greece.livia: depending on what happens tomorrow, that is whether or not economist think -- thank you so much. it has also been a busy couple of months for homebuilders. most april, they cited the work in years. future stocks have climb to the highest level in eight years. homebuilding is likely to pick up even more as we head into the summer season. fitbit is boosting the target size by as much as 37%. the maker of wearable devices like data and exercise plans will offer 44 million and a half -- 44 and a half million shares. at the high end of their offering range, they will be valued at almost $4 billion. pay: warren buffett will $300 million for insurance australia group. the agreement gives berkshire 20% on iag's insurance payment and is liable to make 20% of claims over a decade. boeing pulled in its biggest overyet, extend his lead airbus in the second day of the paris air show. the list price is almost $11 billion. it gives going close to $30 billion in sales, almost double airbus's to

tom: he is saying should mario draghi reflate europe.he is saying should mario draghi worry about asset inflation and whether it is getting to copy. -- too cocky. brendan: alan greenspan said can you spot a bubble -- not only can you, you should. michael: we know that the fed approach has been -- it is very hard to spot bubbles. even if you can't spot one it is not clear that raising interest rates is the best way to address it. a legitimate debates, but i think he is coming into that debate in a sort of oblique way. tom: very cool. we will continue our discussion with michael feroli here in a bit. let's get to top headlines with ronni -- with vonnie. vonnie: hsbc ceo stuart gulliver plans to get rid of 50,000 workers, cutting $5 billion a year and costs. 25,000 positions will be cut by selling operations in turkey and brazil, but hsbc will maintain a large presence in the u.s. mr. gulliver: biggest economy, biggest exporter to the world, and actually the world's reserve currency all require us to keep the u.s. presence. it is linked cro

yesterday ecb president, mario draghi, warned that market should be prepared for higher volatility.igures of the economic came out today before the may jobs report tomorrow. last week you were americans applied for unemployment benefits. the total number of getting jobless insurance payments was a small list in more than 14 years. meanwhile, the bloomberg consumer comfort index fell last week to a six-month low. higher gasoline prices may be blamed. the average price of regular gasoline the highest since december 1. matt: we are waiting to see who will make the next move in the greece price -- crisis. the greek prime minister plans to summit with his inner circle. that is after they fail the bailout fund. greece needs the money to avoid a default. the grist is rejecting proposals that call for tax hikes and pension cuts. -- cipris. shares of dish and t-mobile rising. there is talks in the wall street journal they are in merger talks. a number of things have been resolved, but not the price. according to the report, the t-mobile ceo would run the companies are buying -- combined. cha

union'se european highest court has given mario draghi another tool to use. the court ruled that court and the ecb did not go too far when it unveiled a bond buying program in 2012 after mario draghi declared he would do whatever it takes to save the euro. marissa mayer says yahoo! is proceeding with the alibaba spin off as proposed. shares moved on her comments. she spoke at the bloomberg technology conference. marissa: we are proceeding with our plan as proposed. it's based on the contemplated changes being communicated don't apply to previously received requests for ruling and the ruling, we filed for it well in advance of when these changes were communicated. that gives usg confidence is it does not seem these proposed changes are contemplating changing the applicable law, so it's more about the processes around these types of transactions and less about the applicable law. she also said she wanted to do more with the national football league. twitter pasta parting ceo says while he's confident the current direction of the company, he's willing to let the

mario draghi is saying the ball is squarely in the greek government's court date the greek government has said they have not had concrete proposals which are enough for the country to meet its budget targets, and it is up to the creditors to respond to the proposal. area financeo minister's meeting on thursday in luxembourg. there is no prospect for a deal inside by then. we are definitely entering the endgame. scarlett: i want to bring in something that the french president said on greece at the paris air show. all european officials have been sounding off on this. here's what mr. along said. we are entering a phase with a risk of turbulence if no deal is found. greece must not wait. it needs to enter into discussions with the institutions again. scarlett: so the message is, greece must not wait. nielsen, delineate for us alexis tsipras' options. is he just fighting for political survival? the: as far as i can judge, two choices he is making, he is trying to get on the page of the europeans or he will descend, the country will descend into chaos for sure. at the end of the day, at on