the fact that chancellor merkel lagarde.ether to offer -- got together to offer a united front is a good sign. but lagarde. the prime ministerg difficulty keeping his own coalition together. significant opposition to accepting a deal and with the appeal to the greek people he seems to be setting himself up for disappointment. the only way out is to accept these terms and to move forward with very difficult internal reform decisions. if he does that he risks division in his own party and great public dissatisfaction. he said he might have to put such a deal to referendum with the greek people. speech as a today's way of setting up the great people for a bigger decision at the end of this month. they've now postponed payments until the end of june. alix: grilling the creditors in greece are haggling over 7.2 billion euros. it is a drop in the bucket. why not just pay it? how much money is that really when they go so much more -- owe so much more? guest: a lot of this is about politics and keeping his coalition together. a lot

lagarde, mr. younger. and we had the french president as well as angela merkel. they are trying to hammer out a unified position so that they can go to greece. i don't want to call it an ultimatum. they are trying to come up with the last, best offer. that is what they want to deliver to mr. tsipras. they want to put it on the table and have a unified position. we have here a little insight on what actually happened at the meeting. they did say that the five leaders agreed to work and that the work must continue with greater intensity. the idea that you can attempt to buy talks on this seems a little bit off. maybe they will dedicate a little more time on their schedule to have more meetings. maybe they should call it a snap meeting. anna: these kinds of meetings typically come with details about what they ate and drank. hans: we need that wine list. it did go into the night. we know that deadlines force decisions. we do have one payment coming up on june 5. manus: there is a certain amount of credibility factor at stake. the americans have come and said that the

creditntatives of institutions are meeting with angela merkel, christine lagarde, and mario draghi.reece faces a debt repayment to the imf friday. secretary of state john kerry is on his way home from geneva to get treatment for his broken leg. also on his flight, an orthopedic surgeon and additional medical personnel. it happened in a cycling accident in france over the weekend that will limit his ability to travel just as talks with iran enter a crucial stretch. the u.s. and other world powers want to curb iran's nuclear program. in exchange, they would agree to ease economic sanctions. the supreme court has bolstered the religious rights of workers. the justices revived a lawsuit claiming abercrombie & fitch illegally denied a job to a muslim teenager because she wore a headscarf. the ruling will require businesses to be more careful about religious dissemination when the interview job applicants. those are some of your top stories at this hour. the leadingases are causes of disability in the u.s., and account for 70% of all deaths. think of things like depression, addiction, sch

hans: he didn't even know about this meeting between angela merkel, lagarde, draghi and hollande. rtant because, to bring her party along, angela merkel is likely going to need the support of her finance minister. if there is any distance, that will make merkel's challenge to sell any sort of potential deal back to her public, it will make it that much more difficult. for her part, merkel is pleading for time and part because the sites seem so far apart. mr. sippers spoke with meta-merkel and mr. hollande and he rejected the very basis of the proposal, the proposal #on the late-night meeting on monday night. she said we are showing goodwill from our side, but goodwill alone is not enough. in the end, the numbers have to add up. andreas don brett is the number two at the bundesbank. he said that am, too -- that an exit would be manageable. >> i am looking at the exposure of the banking system towards greece. for example, if i look at the exposure of german banks, we have an exposure of 2.4 billion euros left of all german banks. so in terms of a financial contagion, that is the only

angela merkel, christine lagarde all in attendance. hans, i guess we have got to start with you. who else is in the meeting? hans: we know that it went late in the night. we know medavoy guard was in berlin. she was joined by mr. draghi and of course angela merkel. what is interesting is they came out of it agreeing to intensify their efforts. this morning in paris we have a comment. he says real progress is being made. he said there is progress made around the value added tax. it seems there has been quite a bit of pushback about reforming that. if he is correct, they are making progress, then it could be seen as a positive sign. let's check with our colleague in athens to see whether that is one of the red lines or if the bigger one is tension and later -- labor reform. jonathan: if greece gets and offer what is the chance of accepting it? what is the risk? >> it seems like the deal will bear a political cost for the government. it probably holds the red line. it is one of greece's redlines. overall, it is a complete package. it will be difficult for prime minister tsipras. we

that includes angela merkel, christine lagarde, mario draghi and francois hollande. the goal was to hammer out an offer that greece could consider. the intensity may be needed as the greek government faces another debt payment to the imf this friday. it is the smallest of four totaling $1.78 billion this month. greece says they can make the payment. the timing coincides with the expiration of the euro bailout by the end of june. talks are dragging into the fifth month. deadlines have come and gone. it has resulted in little as disagreements over pension and labor laws persist. let's go to hsbc. they may be preparing to cut as many as 20,000 jobs. the ceo will announced layoffs next week. unidentified sources said the exact number is still being worked out. they avoid more than a quarter of a million people and have been trying to reduce costs and sell businesses to bolster earnings. this while spending billions of dollars to boost internal compliance. it is also considering leaving the u.k. and returning to asia after taxes and regulations cost more than $1 billion.

mario draghi, lagarde, merkel, hollande, they worked late into the night. they now have an agreement to send to greece. alexis tsipras said independently that he would send his own proposal to his creditors. we have dueling proposals. the euro was gaining strength, and through this you had jeroen dijsselbloem leading the eurogroup who said we are not making enough progress. then, the euro dropped. you cannot leave jeroen dijsselbloem out of the conversations. he is one of the most important finance ministers, and he is saying no deal. the creditors were not simply capitulate. erik: i would call that a reality check. thank you, hans. of 3/10 of acrease percent is positive news for ecb policymakers. a deflation scare forced them to release a trillion euro stimulus program. they increase the fastest and nine months. the senate could vote today on a bill changing the national security agency's ability to collect phone records. if it becomes law, the nsa would only be able to gather phone records for six months to a year while it transitions out of the program.

hans: along with lagarde, merkel was putting on the brak that we are stream rolling toward the deal.inister say that unless it is passed by the greek, austria would not support a new disbursement. everybody wants to see a good faith effort, more than good faith from greece and want to see parliamentary action. francine: that is what angela merkel was talking about, she wants to see more. and mr. tsipras has convinced his own people, his party that this is the right proposal. hans: yeah. this -- as there are a lot of ways this deal campaign now. maybe step back and look at how it can go forward and mr. tsipras signs a majority of its prominent does not have to be a majority of syriza. and angela merkel brings her caucus along and her party alone. it does seem that something fundamentally has changed in the past 24 hours. it was this time yesterday that finance ministers were pretty negative. pretty harsh a was of a doubt the greeks had proposed. that actually read the proposal and it turned around. we are heading into that. -- pretty harsh and there was a lot of doubt of what the gree

at least on getting a deal, he needs lagarde and merkel. those are the ones holding out the most. this is not all merkel. you have to have -- the spaniards are not all that excited about a soft deal. the question for tsipras is who are his allies. maybe you could say juncker but their relationship is not great. brendan: the shot clock is when capital flight out of greece reaches catastrophic levels. 1.8 5 billion euros came out of banks friday alone. what evidence do you have now as to whether that is continuing today? guy: i have taken a look at banks closed to me. there are not many people in them. there are no queues at the atm. over the weekend we did see huge numbers of orders to withdraw money. you place your order and 24 hours later they give you your money. we do not have a good indication. pretty much what we have at this stage. the ecb has been forced to come in and raise the ela. money continues to flow out. people are saying that tomorrow may be the capital flight stops. people are expecting a deal tonight. brendan: seems like there is a list of emily: tsipras -- a lis

tomorrow, madame lagarde and angela merkel have another meeting.d they are going to give their last final but not really last final offer to greece that was quickly rejected by alexis tsipras. he gave the fiery speech to parliament. i'm not sure how they plot around what the next steps are. if you have nothing tangible from athens yet. maybe they just wait around the phone for athens. tom: i am going to brendan on this. french official -- obama says the strong dollar is a problem. eight headlines later on bloomberg, obama did not say the strong dollar is a problem. that is a classic g-7 as the headlines go back and forth. brendan: it is only a matter of time before they pose together wearing creative shirts. what is on the agenda for the president today? he's meeting with the iraqi prime minister, right? hans: what do you do to sort of keep the pressure on russia but also showed there is an offramp for russia? the consensus seems to be you want to have something where the sanctions would be increased if there are more incursions into eastern ukrain

but angela merkel and christine lagarde behave as if the last five years hasn't happened.though peter, some would argue that what they call austerity and higher taxes really isn't tightening your belt. a lot of great stuff. next time we'll do it even longer, appreciate it. >> take care. charles: okay. we've got the supreme court -- is that decision in? okay. breaking news right now, supreme court is ruling on the epa. let's go straight to peter barnes. >> reporter: charles, it looks like the epa has lost this one. in a 5-4 decision yeah 5-4 decision, the conservative justices have ruled that the epa must consider costs when imposing new regulations. in this case, specifically on coal-fired utility plants that the epa has targeted for lower greenhouse gases. i've just been handed the opinion here, but it looks as though 5-4 the epa must now go back and issue regulations in a different way and specific including the costs of its regulations. and so this is going to make issuing these regulations a lot more difficult, and it is a setback for the obama administration as it mov

the cover of darkness angela merkel, francois hollande, and european commission head jean-claude juncker, entered for an emergency meeting on greece. imf chief christine lagarde and mario draghi, the head of the european central bank. while no official details were released greece's main creditors were drafting a common text to send to athens. on tuesday, greece's prime minister says they submitted a realistic proposal late monday. one that would unlock the up to 7.2 billion euros that they need to avoid default this month. >> we are not waiting for them to submit a proposal. greece is submitting a plan. it is clear that the decision on whether they want to adjust to realism rests with the political leadership of europe. >> a decision that the eu's economic commissioner thinks is close. >> during the next few weeks, we need to find a solution. i think we are in the process of doing that. the more efforts that both sides can be making to reach economize. >> a slew of deadlines are approaching. friday they have to pay some 300 million euros to the imf, and another 1.25 alien -- another 1.20 5 billion -- another 1.2 5 million euro by mid-june. stephen: the court

christine lagarde is insisting on pension reform. angela merkel gave a speech this morning, saying yes, there still a possibility, they're looking for ways. she said her usual comments on how thei when there's a will there's a way. she did not say that a departure from greece would absolutely be a rupture to the eurozone, to the economy. privately, there's a lot of conversation a about what different countries are doing to contain the contagion. olivia: thank you so much. we will have more from hans drought the show -- throughout the show. julie: the big ipo that priced last night. we are talking about that bit. it raised $372 million, placing shares at $20 apiece. the size of the ipo on tuesday amid stronger-than-expected demand. even at the 17-19 dollar range, it was still more expensive than a stock like apple. olivia: thank you so much. olivia: only about a $4 billion valuation. olivia: you know what's worth $24 billion? caribbean be in talks to raise financing at a valuation of $24 billion. -- air b&b. they're projecting 2015 revenue of about

merkel indicated that the talks would be the most illegal. christine lagarde tempered optimism the most. not necessarily negative. she was trying to be clear on the task ahead. >> we have a new proposal that is more comprehensive and includes more details than what we are seeing. it is still short of everything that should be expected and there will be room for negotiation. hopefully, we will be constructive in a short span of time. hans nichols: this came out of the finance ministry in berlin. berlin it will be unlikely to relieve any aid until there is a vote in the moment of greece. the german parliament will not vote to release any funds. anna: what are holding things up? hans nichols: it is how much you get from the value added tax. the european officials want 0.74%. the greeks have come a long way towards the creditors on the budget surplus. an interview yesterday, they said that greece had moved into line. they will fall into the target per year and it looks like on the overall numbers, greece has moved towards the creditors. anna: in athens guy johnson

merkel was host in berlin." a special gift from washington, madame lagarde in from washington. hans nichols brings the drama forward from our offices in london. what do i need to know about christine lagarde's role in these midnight meetings? hans: all five lead individuals want a unified front. that is in part with the meeting was about, and they are in the process, we believe come of drafting something to send to the greeks. is it an ultimatum or a last-debt proposal? what is an ultimatum, and what is the last best proposal. alexis tsipras has said this morning he will not receive anything. we have fiery lang which out of him this morning. tom: you are going to full fifa into greece and make brendan greeley -- brendan: you do not propose to me, i propose to you. the heads of the troika plus merkel and francois hollande. is this the most important meeting on the subject in four years? hans: maybe not four years, but certainly in the last six months. certainly since citrus and -- since alexis tsipras and syriza came to power. this was crucially important, and if there is a reso

it's too painful for the greeks, then we know that angela merkel and company will bend, they have to. do they? i'm not so sure. christine lagarde don't care. at midnight greek time, greece is in arrears if it doesn't pay back the $1.6 billion euro debt they owe the imf. the next tranche of money they would get, $7 billion, to stay alive. as the world watches greece teeter on the brink of default, we bring in a man with more than three decades of experience as a u.s. diplomat, much of it as ambassador to greece. charles ries is former u.s. ambassador to that nation. he's currently the vice president of the international division at the rand corporation. joins us now in a fox business exclusive. ambassador, what must you be thinking right now of all that's going on on the ground? >> well, liz, as a diplomat, the thing that i get is even though this is about economics, it's really a political struggle. and you rarely see a situation in which east side, both sides have -- either side, both sides have so misassessed the interests of the other side. the the germans have misassessed, they have not adequately understood the impact of w

have from greece is a rejection of the proposal that angela merkel, yunker, everyone came up with a week ago. looking to see what madame lagarde. ukraine is on the agenda here. what do you do about stopping military incursions and what you do to fix the economy. friend -- francine: everyone has had enough of the antics that we have been seeing. it will be interesting to see that. thank you. hans nichols will be live throughout the day. manus: tom keene and the whole team. the leader of the scottish national party. it took the political system by storm. francine: she is there to raise funds. she said her party would lobby for the u.k. to stay within the eu. it seems like the pot as calling the kettle black. we will have more on that next with tom keene and his team. ♪ announcer: this is "bloomberg surveillance." tom: call up the sunday purge. jane is out at deutsche bank. can european banks compete with j.p. morgan and goldman sachs? g7 leaders meet in bavaria. the demand greece chart a way forward for more meetings and phone calls and potential compromise. jean-claude juncker looks for minimal rules. in this hour, we focus on

german chancellor angela merkel holding an emergency summit on greece and christine lagard and mariohe officials to attend the secret gathering that is now not so secret. here's what bob hormats told us about it in the last hour. >> there are very large numbers and them building in greece simply doesn't have the money to repay them. the problem is who is going to blink and how much? can they do the defaults and stay in the your or will the other europeans allow them. other gray areas where they could do a number of things that europe didn't like, but not necessarily stay in europe. >>> in other global market news euro zone inflation data came in 0.3% in may. that's what started some of this global selloff. you saw people concerned. good news on the economic front, but concerned that that might mean qe might end sooner than expected in europe. >>> also india central bank cutting interest rates for a third time this year. forecasters have questioned whether the economy there is doing as well as the latest growth numbers suggest. >>> the acting head of the transportation security admini

he's meeting with the ecb and christine lagarde of the imf, and then they'll meet with the prime minister. that happening for angela merkel evening. she said over the weekend, i need to see a deal from the finance ministers before i'll sign off on a deal. it's difficult to see what she can add to it but we've been surprised by the meetings before. if it had to be my guess, i'd say same time and place on thursday and in the interim we continue to watch the greece bakes bake banks. >> thank you very much. hoping and waiting for a deal. the markets are certainly in rally mode beginning the second half of the year with a bang largely on optimism over a deal. the nasdaq and russia notching highs as we speak. joining us at post nine citigroup's chief equity strategist. what do you tell clients about greece? >> a couple things. one, expect this thing to go down to the wire in the sense that both sides, if you think about angela merkel, and the other side they have to say we tried to get the best deal possible. our sense is there will be something. it could get pushed down the road again but they're going to try to find some solu