mr. tsipras is actually talking to his team. st that we heard from this tsipras saying that creditors did not accept the greek proposals. this came out a second ago. on the back of that bunds have been climbing as mr. tsipras saying the creditors did not accept these proposals. we had an earlier headline which now make sense. he says, mr. tsipras saying not accepting balance measures seemed strange. let's get straight to brussels and to hans nichols. when these headlines came out, i was not sure what to make of them but it seems we do not have a deal on the table. that he says what has been proposed by greece the creditors, so these institutions have rejected it. hans: it seems all is not well inside these talks. in a a few minutes here, the actual political talks are going to start. mr. tsipras will meet with mr. draghi madame lagarde. what we know is a greek official is saying that mr. tsipras is claiming that the creditors are not accept and their proposals. so this is clearly a speed about. whether or not this is insurmountab

mr. tsipras who is also missing the russian president mr. weidmann are proven later today. -- mr.tin later today. ♪ francine: welcome back to "the pulse" live from london on bloomberg tv. let's go to the st. petersburg economic forum. >> thank you, francine. i am joined by the chief executive of the moscow exchange. thank you for joining us, alexander. he is here at the st. petersburg form not for the first time. we were here one year ago and i should also disclose to viewers that every time we have an interview, hunting absolutely outrageous happens. you were almost decapitated by a falling light during one of our interviews. but it is always worth the risk isn't it? alexander: it is. >> maybe it is not because they are handing out the salmon sandwiches behind the, but the atmosphere this year seems to be upbeat. is that your takeaway? alexander: no. i would say different maybe. much more business man and like from the foreign literalist. i'll also a lot of people from the global investment banks and another point is that people are very interested in talking about the forum. thi

mr. tsipras is bringing?trougalos: we are trying to move a little closer to what our prime minister wants. guy: are there changes in the pension system? giorgios katrougalos: we have accepted nationalization. early retirement. we're still adamant and we say no to any kind of reduction. [indiscernible] we cannot go any more. guy: an increase in taxation? giorgios katrougalos: we do that exactly because we do not want it to go down. we want to have possibility to reform our state. not by measures imposed. guy: do you know the details of taxation? giorgios katrougalos: we have ongoing negotiations. guy: the german foreign minister said we need to make the proposals more concrete. what you think he means by that? giorgios katrougalos: negotiations not a matter of taxation. it is still a political clash. i hope that it will correspond. and have something. guy: if you cannot get a deal today, what will happen? giorgios katrougalos: both sides once a deal. a lack of agreement would -- everybody has an interest. guy:

mr. tsipras has taken the extraordinary gambit?y questions unanswered in the greek debt crisis. >> mike westborrow says greece's decision to call a referendum is a smart move. >> european authorities have not been bargaining in good faith from the beginning. that was clear you know ten days after syriza was elected. well you know within a week and a half of the election, is on february 4th the european central bank started to restrict credit in a ways that they didn't do to the previous government, and they had no reason to do that soarn to other than to undermine the government. they are fighting over pensions and something that shouldn't concern the european union central bank at all. they are in a situation where they have a nuclear weapon which is to scut off credit altogether and force greece out of the euro. they can't do that, but they can undermine directly to restrict credit so they will get a new government that will do what they are told. alexis tsipras still has two-thirds approval rating but if this goes on indefinitel

mr. tsipras was extremely disparaging about the imf. seems to be breaking down completely now.o, we have to watch what happens to greek banks in the coming days. we know that nervous investors have taken billions of euro outs out during the last nine days. surviving on a drip-feed of money. now that mr. tsipras has taken this extraordinary gambit, many questions unanswered and extraordinary moment of drama from the greek crisis. >> be greece's decision to call a referendum is a smart move, says this expert. >> european authorities have not been bargaining in good faith from the beginning. that was clear you know ten days after syriza was elected. within a week and a half of the election on february 4th the european central bank started to restrict credit in a way that they didn't do to the previous government. and they had no reason to do that other than to undermine the government. and this fighting, they're fighting over pensions and things that really shouldn't concern the creditors at all. all they really should be concerned about is the budget balance. they are trying to u

mr. tsipras has called for a referendum on the bailout this sunday. >> translator: we will survive. we stand on our feet we'll be alive. and we'll go and practice our right to vote. and we decide as people what will be our future. >> for more on this i want to bring in cnn's isa soares joining me live from athens. for greeks the limit is 60 year rows a day. if you have children and a family that is barely enough to live on. but some pensioners haven't been able to get money out at all. can you explain why that is? >> reporter: absolutely zain good morning to you. the payday for pensioners was initially on tuesday.

mr. tsipras is flying in and the reaction has been pretty good. alexis tsipras' new offer is progress. how far will that progress goal? what deals could be struck? ahead of the ecb and imf? what would i managed to get through and the emergency meeting? -- what could they manage to get through the emergency meeting? up .3%. we are seeing rest asset coming back. out of germany out of the so-called safe havens. the bond price is falling. yields are up for the u.s. treasury as well up six basis point. meanwhile, money tentatively going into periphery. contagion really rearing its ugly head last week.

mr. tsipras and said and the deal you think you have now on the table, is anyone in your party willing ton it and vote for it? and that is a good question for the prime minister. in that exchange i think you have exactly the dilemma of greek politics left or right, which is whether any kind of deal is palatable to the greek people and what price will they pay? mr. tsipras warned the government of going further down the path should talks this month fail and greece find ourselves without a program on july 1st. he says confrontation with europe goes well beyond the issue of the euro. you will still be dealing with a hostile european union for years afterwards. he said that the country cannot afford that election now. it isn't the conservatives who are afraid of it. it's the country that cannot afford it. and this i'm afraid has now become such a political football here in greece that it may be part of any possible future greek accident that it is the political factionalism here that can no longer be overcome. the parties that have signed on to various austerity measures feeling defensive, ag

mr. tsipras addressing the media, mr. juncker saying we are not quite there yet.ck some of the oxygen out of the room. it has been an optimistic morning across the board. you have seen equities rally. we still don't know what is in this final deal, but if juncker is saying we are not there, he in the past has been the most optimistic. we heard from jeroen dijsselbloem, the dutch minister. he said he hasn't seen enough to make any comments. i would take juncker's lukewarm comments as pretty negative given the fact that for the most part, he's been the one trying to frontload a deal. francine: i'm looking at the markets. i know they are maybe not a benchmark into reality but at the moment, they are not losing at all. the dax has gained 3%. the ftse is gaining 1.4%. juncker saying, i don't know if we will have an agreement today. how is it that we have an agreement today? we still have time. hans: it looks like from what everyone is saying publicly, even mr. moscovici, he has been generally optimistic about the prospects and the path forward to a deal. he said today

mr. tsipras and mr. hollande tomorrow night. mr. tsipras told his counterparts that the creditors' proposal can't even be a basis for negotiations. this kind of codifies what we've been hearing yesterday. that was the tsipras plan that he wanted to negotiate on. it seems like they are not even agreeing on which plan they should negotiate on. madame merkel has given a bunch of interviews. she said we are showing goodwill from our side, but goodwill alone isn't enough. this all gets us closer to this question of what would happen if there is going to be a default if there is going to be a grexit. among german economists they don't see overly concerned. whenever a central banker says that a grexit would be manageable, greek voters should be concerned. listen to what andreas dombret told bloomberg earlier. >> i am looking at the exposure of the banking system towards greece. if i look at the exposure of german banks, we have an exposure of 2.4 billion euros left of all german banks towards greece. in terms of a financial contagion, that'

mr. tsipras and all his creditors. that is the fundamental shift i've noticed.ll the creditors seem to be frustrated with the steps taken by athens. there was some possibility on wednesday. there is this summit. mr. hollande will be there. what we have just heard from a french official is that there will not be a meeting if there no hope of a deal. the big shift that i've sensed is that europeans no longer want to talk for the sake of talking. they only want to talk if there is a prospect of a deal. from that same french official indicating that june 14 is the new deadline. that is when they need to have a deal. jonathan, you and i have talked about deadlines far too much to put that much stock in a june 14 deadline. we just have to put it through our own modifiers and figure out what the discount premium is on that june 14 date. jonathan: hans nichols. nikos let's wrap this up. a june 14 deadline. you've got a great story on bloomberg.com about this crisis not ending anytime soon. we've talked about the release of a little bit of aid that might get them through

mr. tsipras' comments last night. what does tsipras do this day where they do not make a check out to madame lagarde? erik: a very important point because the expectation is very widely held that reese will not make that -- that greece will not make that payment at 6:00 washington time, some 1.5 billion euros. to answer your question more directly, we do not know. there may be some back channeling going on between the greek government tsipras himself, and jean-claude juncker, president of the european commission. juncker reached out to tsipras last night, reassuring him that a deal could still be reached under the terms proposed by the troika -- and i use that term determinedly -- a slight softening of the bailout terms that the institutions, if you prefer, had offered earlier in the week, specifically a reduction in the hotel value-added tax. 23% that tsipras had called a nonstarter. if that is happening, all of a sudden there is a ray of light. we hear from greek media that tsipras is reconsidering this offer from ju

mr. tsipras keeping his own cities divided. leading greece towards a potential exit from the euro zone and economic disaster. but the opposition, the centrist and center-right parties did not have the numbers. syriza on the far left allied with its nationalist partners in the country and incredibly golden door on the far right all voted in favor of holding this referendum. >> and barnaby how worried are they to have this happen and what's going to happen with the greeks and their money. >> well, i sense that greek society is increasingly polarized and increasingly anxious. greeks will be waking dawp and reading estimates how much money was withdrawn from banks not just banks cash machines, yesterday. most banks were closed yesterday. one estimate was that 1 billion euros were withdrawn yesterday. looking for european central bank whether it decides to extend emergency liquidity to the greeks. will banks be able to open tomorrow? greek people are rest ling wrestling with a contradictory mandate which they gave the syriza governm

mr. tsipras wants people to vote no. he wants people to put their own signature, as it were, to what, by next sunday, will be a defacto depar chur depart depar departure of grease. of greece. their own exit from the euro. >> john siropolous from athens. >>> burundi, blasts and gun fire heard just before the polls opened. the protesters are boycotting the vote. unlikely to be free and fair. follows weeks of violent confrontations. catherine soy reports from.bujumbura. >> on sunday even before polls opened there was gun fire in some volatile parts of the city. that forced some people to move to safer territory. monday after the polls closed they think there could be a potential for violence. and it is not overfor bruinsans the president said he's determined to go ahead for it, determined orun for a third term despite the opposition. the african union saying he should not do so. the people are concerned. the next few weeks leading up to this crucial contentious election could be tense and it is a real possibility it could h

mr. tsipras. they say the ball is in mr. tsipras' court.ting to hear more concern on the other side of the atlantic. janet yellen expressed her concern about what a greek exit could mean. >> in the event that there is not agreement, i do see the potential for disruptions that could affect the european economic outlook and global financial markets. hans: we have a variety of countries preparing for contingencies and a greek exit. schaeuble, the german finance minister said they are making contingency plans. similar comments reported out of brussels ireland, the netherlands. people are starting to think about what happens the day after. there is so little hope, so little optimism that any deal can be struck here at a technical level when finance ministers meet, that puts a lot of pressure on the june 25 26 e.u. summit. one thing that i think paul might be able to weigh on a little bit more, we had an increase in emergency liquidity assistance. that increase was 1.1 billion euros. anna? anna: stepping into the conversation. whose court does bu

mr. tsipras. ideas for cutting benefits for low-income pensioners or raising the rate for electricity by 10 percentage points can't be the discussion. one place where there may be some give, at least from the creditors side is on the idea how much of a budget -- it looks like the creditors have moved a little bit on that. take a look at what some of the numbers are. 2015 they want -- this is a new proposal. only 1%. under the old program it is supposed to be 3%. you see quite a bit of climbdown. at least from what the greek official stays proposal is. when you get at the causes of what is causing this. pension reform, labor reform and tax raising which is are they going to have a value-added tax? guy: let me bring you into the discussion. we're trying to understand what last night was all about in some ways. given the fact that there was an agreement and we are still somewhere away from making an agreement, what was juncker trying to get to last night? >> the european commission will play -- expec

mr. tsipras are scheduled to speak. we will bring you this live. charlie rose will have an extended conversation with mr. putin. ryan, over to you. ryan: i caught up with the chief executive of the country's largest independent oil producer. first off, the former fineness -- finance minister floated the idea of moving this country's next presidential election of by one year for the end of 2016. what does vladimir putin think about that idea? if he wins the election, he will be in in power 16 years, the election if he was to win it. the second thing is, we have seen the european union move against russian state assets in western europe. as possible compensation for what they see as the confiscation of the you goes oil company -- of the yukos oil company. what does the russian president think about that we see any aspect of western companies frozen? the all the branches to ukraine would be welcomed by investors and he will be talking to charlie rose and we will hear from the greek time minister. he has been cool as a cucumber, at least in terms of his

mr. tsipras meets with other parties. the second party in charge, it looks like they will support him if he goes back to parliament with a bailout package. the greek question to me is will tsipras cut with his own party and try to form a broader greek coalition. that has been my only case for optimism. tom: john farrow what will you watch through your london afternoon today? what is the thing the market litmus paper has of interest? john: i think it is spreads, tom. it is not just about a bond market reflation trade. we are talking about credit risk. it is a small divergence, but it is worth keeping an eye on. the first flaw of capital controls is that you do not talk about it. the fact that no one has denied from the credit side of this that there is a plan b, that tells you something. these guys want you to think capital controls are coming because they want to force the issue. tom: john farrow, thank you very much. and hans nichols as well. what hans said about the island characteristics is incredible. brendan: we do n

mr. tsipras could win with the backing of his own government.re coming to the forefront over the next few days. yes, was a good a deal done in brussels and yes, a lot of details to be panned out but that is moot if the greek parliament was a package. we could end up with all kinds of scenarios playing doubt. the timeline is incredibly tight. fran? francine: guy, where are the sticking points? guy: and to the moment when it comes to a deal, things like vat on electricity and processed foods and what exactly we are want to see in term of of budget surplus. we think it will be 1%, 3% over the next four years. if it will be more balanced structure between tax rises and cuts in government expenditures. they need to be thrashed out. all of that again, the point about domestic politics we need to get all of that done and then a vote in athens. an awfully long oil to go. this deal will not be done by the end of the week. we'll be running this story into next week. a critical eye on the payments as well. francine: guy, thank you. we will get back to guy

mr. tsipras' "lemonde" article?nly got a few words through my office and is not acceptable at all and it's crazy. we are the creditors and we're giving them money but under certain conditions and these conditions have to be fulfilled and we have a clear contract with greece as far as the second bailout package is concerned and all the conditions greece has to fulfill. as long as they don't do it, they will not get further money. we are not even talking about a date or package but if they want to have the rest of the second one which is $7.2 billion, they have to fulfill and go along with the ride which we have agreed with them and it's fully not acceptable he's not putting the blame on europe. it's not europe but greece. greece alone. francine: do you think that officials in the e.u. now michael, have come to terms with the fact that it's very, very likely that greece will default and does it mean they'll also have to leave the euro zone? michael: we don't want greece to default or leave the euro zone but it's fully

mr. tsipras and france while lond? -- hollan de? mr. hs: my hope is that greece is at the end of the day being more reasonable. what i heard from tsipras was not reasonable. we would need reasonable people to negotiate with us. we want greece to be a euro member but only after they have fulfilled what we have agreed. francine: great to speak with you as always. up next profits rocket for the world's largest clothing retailer. the details on into tax -- indetex next. ♪ francine: inditex, the world's largest clothing retailer, has a 28% drop in first-quarter profit. charles allen joins us with the latest. sales up 17% since 2012. charles: the euro has been weak. good cause control and good underlying like for like sales probably in spain as well. francine: what has helped? a weaker euro and the spanish economy. charles they they must've done well everywhere for this 13% constant currency sales increase. so good collections as well, i think. francine: in terms of what has been boosting this, the weak euro is this also because the previous q

mr. tsipras talking along the same lines it is a our ore or drachma vote.the foreign interventions play on the greek psyche, they will frighten some people. they'll make other greeks everybody more determined. they will say look, we have put up with austerity for five long years, it hasn't done us much good. we see no economic recovery in sight and so we will defy you. very interesting to see how it plays out on sunday. >> indeed. thanks so much, barnaby for now. let's continues this discussion with dominic kane he's in frankfurt where the european central bank has its head quarters. the big question there will the european central bank continue its emergency funding for greek banks as we continue in to uncertainty? >> reporter: no sign of that sami. you'll recall in fact they said on monday that they were capping the e.l.a. the emergency liquidity assistance that's been effectively a life line for the greek economy for a considerable amount of time. they were cam it at the friday level. around about 90 billion euros cumulative overtime. we were speculating

mr. tsipras.munication with the greek people may not be as easy to comprehend as it is with angela merkel. but yeah, a difficult day. the greeks are trying to come to terms with how they get access to money to live on. it's now as basic as that. the economy here in greece is now in the deep freeze. it's going to remain in the deep freeze for the next few days. how do you restart it? how do you thaw it out? i think angela merkel is probably going to play a big part. it's going to be a very, very difficult week for the greek people. francine: i'm interested to hear your thoughts -- we heard from a german spokesperson saying that tsipras created facts since announcing the referendum. what's the mood like in athens? if you look at the press, is there a little bit of anger in saying look, he was even against the referendum when he was in paris? guy: i think there's confusion surrounding this subject. we still don't know exactly what we're going to be voting on here in athens, not that i'm going to vote

mr. tsipras on far left grouping would likely not be in power or could be mr. tsipras with a new realigned party, and then everything starts over. i know i have to say charlie and i say this with some trepidation, i don't see how they avoid grease leaving the euro with all the momentous implications associated with that both political and economic, and believe me, in washington, that's not a result they want to see. >> rose: okay. roger, what's an exit for the eurozone means if in fact, it comes to that? >> well, there are catastrophic consequences i think for the greeks. returning to the drachma is extraordinarily difficult. it's a downslide and so many other things. greece is going to find a hard time if not an impossible time find anything lenders at any level. lenders to consumers, to businesses and to the government. it's going to be the beginning of a semicatastrophic period for greece. beyond that, the consequence force the rest of europe are pretty big too. >> rose: for the global economy? >> i don't think the consequence force the global economy or the

mr. tsipras' movement tonight. e 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 ecb decision day. all eyes on president mario draghi's news conference this afternoon. how long will we have to wait before w

mr. tsipras.he germans are saying they want to see progress, but that they are quite far away and the very content of the greek proposal suggest they have a lot more work to do. pimm: just a question about the politics involved, let's is a get some kind of agreement and the greek public doesn't like it . is it possible to have to renegotiate it has greece might get a new government? hans: you could have a new parliamentary majority and you could also have members of the opposition party help mr. the press -- mr. tsipras pass something. it may be too late for a referendum. it would likely come down to a parliamentary vote. pimm: thank you very much. consumers may be holding back the service sector. service industry has expanded at the slowest pace in 13 months. the nonmanufacturing index came in lower than estimates. up 90% of the economy. consumers have been saving the money from paying lower gasoline prices rather than going out and spending it all. olivia: wendy's will buy back $1.4 billion in s

mr. tsipras who was the logical one.oking at proposals and displaying a total indifference to the recent democratic choice of the greek people. jonathan, that is a long way of saying back off. we are very can third, and do not make us leave the eurozone. now, when thing we have now is a number, and that is 3 billion and that is a number of that creditors want greece to that. one other note on this is the european union president said in an interview just moments ago that he could not possibly foresee a plan going forward without the imf. now, privately, you have heard from the greeks a lot of complaining. they are driving a hard bargain. every time you run that by those institutions, anyone of that route that we used to call the troika, they say we are united, we are on the same page, and that is bolstered by the history that was given a few moments ago. jonathan: all of this continues to go with pretty much a zero progress, and with the financial sector, it is pretty clear that the banks are still suffering. what are th

mr. tsipras is as dephi ant as ever on tone. he said that the europeans are trying to intervene in this upcoming referendum, they are blackmailing the greek people by refusing to extend liquidity and by refusing to pay off the imf loan by using international monetary fund fest profits. and he asked to return those profits this this fashion by paying off the imf bond but the ecb hasn't signaled that it has any intention of doing so. as of tomorrow we expect greece will be in arrears. on message mr. tsipras was a little befuddling. he said we never left the negotiation table. which of course greece did on saturday. he puts it in his own terms. he says after a no vote on the austerity measures, we expect that only then we will be able to sit down and come to a sustainable solution with them. it's interesting that he's leaving the door open as though there has been no cleavage or walk out and door-slamming on saturday. which given the strength of the statements on saturday, on both sides there certainly seems to have been. >> john e

mr. tsipras is up to the polls and still has a good rating, but he has not hurt anybody yet.eople are still hoping that he could bring something in the steel that is good for them. you have to remember that he promised just about everything -- higher minimum wage, abolishing property tax, lowering taxes, something for pensioners. he has promised a whole host of things. thele are still hoping of last minute that he will be able to make good on some of those promises, which is clearly out of the question at this point. guy: thank you very much. she is joining us from new democracy. coming up a quarter past 5:00 athens, there is a pro-euro membership rally in the square. we will seek what comes on the summits and the banks tomorrow. it is going to be another interesting week for the greek economy. olivia: thank you so much. that is bloombergs guy johnson. great joined by the opposition finance minister. still to come, more health care deal drama. why and from is not giving up -- them is not giving up the fight quite yet to cigna. ♪ olivia: good morning. welcome back. i'm olivia

mr. tsipras the counterproposal that he made yesterday. that includes modifications of the creditors' proposal that was rejected by the greeks. that could be some vehicle that they will start talking about on saturday. a summit that starts at 5:00 p.m., everyone left last night at 3:00, 4:00 a.m. 5:00 p.m., i think that ends early sunday morning. mark: let's go over to ryan in athens. where does this leave alexis tsipras? ryan: the most telling moment for me yesterday was when they said to the greek prime and, the game is over. he responded, this isn't a game. 1.5 million people in my country are unemployed. i think he's channeling not just his own views, but the views of his party. credit suisse came out with a note. they say the actual big risk for getting a deal by monday is the greek parliament. the credit suisse says that the greek prime minister could probably do that even if it required a messy realignment. it is pretty clear that his own party and the party that he is together with an a coalition, think that the terms that have bee

mr. tsipras speaking literally -- who is he going to tear apart today?e: the governor of the bank of greece is saying it must be averted. tom: i look at my screen and it says contagion there. david: i think there will be contagion. the european stock markets go up 10% today. the reason why, most investors are overweight on european equities. this will either reach a happy ending because they will come to an agreement, or they will leave the eurozone and it will be an exit. it is a protracted -- a projected -- a protracted, ugly divorce will force people to reassess. tom: do you see a jump condition of the euro towards parity or even through parity? david: i am definitely forecasting parity still. also ecb qe. we are only two months away from july when the negative supply of the european government bought ecb -- tom: it is not equivalent. it is much more than what we saw in the fed. we will have david woo -- next time we will have david woo wound up more than he is. brendan: in the meantime, back here in the u.s., we are eating our seed corn, cutting back

mr. tsipras and the creditors, jean-claude juncker, mario draghi, christine lagarde. happy with the proposal greece has put forward. they have made suggestions of their own. it seems the imf has more issues than the others. we are unsure whether it is the imf being concerned there is too much taxation in the new package or whether there is any issue with the pension reform program. at the moment, we have two competing programs in place. we will see when we come out of the meetings whether any progress has been made, whether we have a narrowing of differences. we thought the packet proposed by the greeks would be hard for mr. tsipras to pass in parliament. if we get any changes, it will make things more difficult. even if we get an agreement today, we still have greek domestic politics and german domestic politics still to do with. we are not there yet. scarlet: guy johnson, thank you. matt: the french are the men in quit spying unfriendly governments. wikileaks says the national security agency has spied on president francois hollande and two of his predecessors, alon

mr. tsipras makes them an offer?f the program expired and also greece defaults on a 1.7 billion euro payment to the imf do tomorrow, what happens? miranda: it will be hard for the european central bank to accept the collateral so there is a question as to whether the liquidity provided by the ecb will continue after tuesday. erik: is that is the case, is the greek banking insolvent after tomorrow night? miranda: yes, it does. erik: if the european creditors refused to accept greek bank assets as collateral, this banking system is done and there is no way -- i do not want to put words in your mouth, but there is no way these banks could reopen on schedule next week? miranda: that would be very hard. erik: what are the implications of that situation? ben bernanke blames the great depression on the collapse of the banking system. is that what we are looking at next week? a depression? miranda: yes, there would be chaos. there would be unrest. they are running a primary deficit right now. there would be chaos beyond that

mr. tsipras has been trying to do since he was named prime minister earlier this year.hrown red meat to his constituency. if the football reality setting in that greece may not get what it wants? thomas: i don't think it has. i think there are two different elements out there that a basically irreconcilable. stay inreeks want to the euros. that is a very strong sentiment. by the same token, a similar number do not want to see the austerity continued. ofo not see any real sign let-up by the troika on the kinds of things they are insisting upon. is thathe things tsipras needs to go back to his constituencies and say that he got some relief on the 175% of gdp debt burden. the trick is not willing to do anything on that until afterwards. until after they have made a deal on these basic elements on the table right now. betty: mehul, back to you. i love the story. why does the price of milk and pasta determined the fate of greece? wayl: if you look at the these deals have been cast, there are big important issues being discussed. austerity and national tensions. if you look a

mr. tsipras starsky had at that -- mr. tsipras starts to hint at that. not much in terms of stocks. we are seeing an effect on the bond market. clearly, the contagion is starting to wrap up. guy: we'll take a look at bond markets in just a minute. we will bring you the opening of the athens market. we'll give you a sense of where that is going. the greek banks yesterday mixed. we will see how they opened this morning. twitter question of the day, is greece influencing your decision-making when it comes to your investment decisions? give us your thoughts. u.s. markets yesterday quite interesting. all focused on the fed, i would say. caroline: feeding into the fact that they are not going to be hiking too fast too soon. goldman sachs saying they're not going to increase the hike until december. guy: we will get a sense of how europe is going over the next half hour. caroline: asia though? guy: asia is interesting. the markets are quite involved with each other. usa is focused on what is happening with the fed. europe is focused on what is happening with gr

mr. tsipras and leave the opposition to victory on sunday and win the next election. mayor kamninis: if we have this result, i'm confident that we , there will have it be a new dynamic in greek politics. erik: of what sort? describe it for me. will kamninis: i think we have fresh, new leadership and pro-european forces united. erik: you are an influential country. this who would you throw your weight behind? patient,ninis: just be and let's see what happens. it's very early to start talking about those things. the main issue is to win the referendum. not you personally, but how is this country -- let say, again, hypothetically speaking, the country votes yes -- how is greece going to retain the confidence and trust of its european creditors? let's not forget that the previous governors were incapable of implementing the kinds of reforms demanded of this current government, which this current government has refused to accede to? how will this new government be any more successful changing tax codes, labor laws, the pension system? these are no small tasks in this count

mr. tsipras can bring juncker back into the fold.he last 72 hours things seemed to deteriorate between mr. juncker and mr. tsipras. we also haven't heard from the i.m.f. and we haven't heard from the euro group. a lot of this optimism now seems to be fueled by the fact that political leaders are engaged. we vice president heard anything concrete from the i.m.f. and the head over the euro group. all of these european countries that would potentially need to put something through their parliaments to get any sort of aid relief whether that is partate aid or full aid, that is still a big step going forward. it seems like there are a lot more road blocks and we don't have that much concrete from the leaders negotiating in brussels. francine? francine: thanks. up next, the bank of korea cuts its key interest rate and warns of the threat of mers. we'll have that update after the break. ♪ francine: welcome back to "the pulse" live on bloomberg radio and tv streaming on your tablet and phone and bloomberg.com. now to the u.s. where former pr

mr. tsipras can bring home. example, they have allowed him to save only a quarter to half a percentage point on gdp on pension sending this year. in that is something he has already offered. they seem now to have agreed to it, of course it would have to rise to one pull point of gdp next year. but that is also something that the greeks have agreed to. he has got the credit dors to agree to a 6% tax bracket for medicine. health spending and national health coverage have been rolled back and therefore, there's more out of pocket spending on medicine. and secondly the greeks have managed to preserve utilities at 13%. those were to move up to the standard rate of 23%. so they have won important concessions. it's not plain sailing. there are still difficult points to negotiate, but i think it's now beginning to look like something that mr. tsipras can wave around as something that contains a serious number of concessions to the greeks compared to what we were looking at the end of last week. >> all right. john thank

mr. tsipras.seems to be some kind of agreement that maybe we can find some common ground but one -- when mr. tsipras turned his back on him, when he seemed to go back and accuse the european commission of going no further from that point on, mr. yunker -- junker has made it clear. watching what germany is preparing for, what happens if there is a bankruptcy when we introduced capital controls will be the key story. anna: do you think there is truth to the reports that capital controls -- the governments are planning for a plan b that could involve capital controls, do you think all that is happening behind the scenes? simon: i did find it quite odd that overnight there were these stories leaking out about the possibility of capital controls as soon as this weekend. there have been stories behind the scenes about capital controls. since last thursday or friday. do i take it seriously? absolutely. could it happen this week? there is no answer. anna: what about the grexit? simon: i have been 50-50 th

mr. tsipras has run on his counterpart and he is claiming that mr. tsipras is not honest with his own public, so i think from the european side, creditors have done a pretty good job of remaining united. the challenge is really who other negotiating in athens and what does athens c as the state? matt: i will take it from there, thank you very much. we will move on to domestic news. chris christie has made it official. the new jersey governor has become the 14th republican to join the phrase for the white house. chris christie made the announcement moments ago at his old high school in livingston, new jersey. chris christie: america is tired of handling weakness in the oval office and we need to have strength and decision-making and authority back in the oval office, and that is by today, i am proud to announce my candidacy for the republican nomination for president of the united states of america. [applause] and businesseaders executives wanted chris christie to run in 2012 but he turned him down. some early backers at sign don and the home depot cof

mr. tsipras flew back to greece last night and made the extraordinary announcement in the early hours of this morning that the greek people win going to the polls in what, seven days time if parliament votes on it and they're due to meet in about 40 minutes from now. >> and what do the greeks make of all this barnaby? >> i think it depends where they stand on the political spectrum. as you would imagine after five years of economic contraction the flavor of the papers, the paper on the right wing, in other words they're no friends of syriza government, a referendum of bankruptcy. the euro or the drachma and make no mistake, that is what they will be telling the greek people over the next week is the choice before them. and ominously we're on our way to exam controls it says. big doubts whether greek banks can see out the next week. theap they've been surviving on life support of the european union central bank. see if that can continue. longer queues at bank machines as greeks try work out how many euros they can pull out and how much longer ultimately the euro will remain the currency.

mr. tsipras has maintained a diplomatic relationship with the german chancellor. this marks a very low point in the public diplomacy. >> john live from athens. thank you. >> you now the tunisian government is dismissing reports that a group linked to isil is behind friday agency attack on a beach resort. the government has increased security across the country and prime minister has ordered the closure of 80 mosques for inciting violence. more pictures emerged from the attack. 39 people were killed, including the gunman who open fired on sunday at the beach. pictures have been released by isil-affiliateed group suspected to be behind the attack. an aviation student from a town about 100 kilometers. the tunisian prime minister said that he had not traveled abroad and he was not previously known to police. we have more on who might be behind the attack. >> the claim of responsibility appeared on social media. under the name of the islamic state in iraq and the levant different reports and security sources also saying that they doubt that and they don't have strong e

mr. tsipras knows this. a deal could ensure that there's a package and a job of the greek economy getting back on track. together with all the other commission enroll to put together all the elements in order to be able to provide grief, because this is not only about consolidation, this is also about putting forward the growth opportunities of the greek economy. it's a huge part of the package, the commission and i myself and together we were proposing, so you can see that we really move mountains until the very last minute when greek authorities chose to go. all limits were on the table. so i don't have another reason, and i don't have to make new proposals today. i'm describing the proposals which were on the table and which were the nature. i have to say easy aagreement of the last saturday. what do people know about our flexibility is and information? what do they know about the details of our proposals? what do they know about this latest offer we were obliged not to take interference on the greek, but

mr. tsipras has done. i had an agreement, it wasn't a nonagreement.aid let's support it i said yes, no the a no and i gave a period of time one month for people to debate it not just five days. i also did not have the consensus that mr. tsipras has. he does have a wider consensus of parties that do want an agreement. so actually he is proposed something which now is dividing the greek people because there's a wider consensus for an agreement but he is saying as government, don't vote for this. i do hope and last moment today, is the day when the program expires, even at the last hour, we do have an agreement between the creditors, between our eurozone partners and greece, the greek governments, that's my appeal. >> the vote as it stands and the way it's worded right now, how do you think it will go on sunday? >> it's very difficult to say. on the one hand i can understand very much people after five years of austerity. loss of 20% gdp, 50% youth unemployment. they say how long it's going to last? we're being told what to do on the other hand i think i

mr. tsipras offered, it was not enough for the creditors of the you're central bank and international monetarynd. they want more cuts, more taxes or both, and there is no way on earth that mr. tisipras can sell all that at home. >> we measure the value of the agreement in price obviously it's about politics, and it's about money. i would be very surprised if we were to get a deal tonight. there has been a lot of back and forth at the political level. we have not seen the concrete proposal yet and we have to deal with it very carefully based on the parliamentary mandates. >> back in the country which gave the world the philosophy of stoicism many people still seem to think that things might end up okay, but yet they got used to things not being okay at all so maybe nothing shocks any more. >> i think that the situation will improve, but we'll still go through a difficult time. >> it's better the way we are even if it means we are a bit strapped. at least this way there is a path that leads somewhere. there might be a light at the end of the tunnel. >> bear in mind, too that the bill athens is t

mr. tsipras -- mr. tsipras and mr. varoufakis. that would be a good reason to be worried.nd the stage of debate, you cannot really call it a negotiation. the debate where annie weapons can be -- any weapons can be used and fear and even the scenarios put forward in hope it will actually unlock in the next few weeks. so far, no one at the top end has talked publicly in favor of exiting. francine: the spanish 10 year is above 2% for a long time. do you expect the ecb to step of qe? gilles moec: they will have to. what i wrote is the finger is on the trigger. not just what is happening in greece but this is taking place against the background of the selloff. and now we added to this contagion from greece. and you have to be very basic on this. the very purpose of qe's to make sure the central-bank could control real interest rates. even once the policy rate hits a zero. if you look at the real interest rate it is higher now than they were. you have to admit that. as it is today. there is one snag which is some of the selloff was probably driven by technical factors. in may, q

mr. tsipras praised russia's idea of a multipolar world order and set a world older -- order dominated by brussels and washington is over a long time already and we have to go to new shores. that's what he said in the world economic forum. that must have gone down very well with mr. putin, who for a long time already tries to secure loyalty among individual european states and who has tried to present himself not that much as isolated as the world wants him to be. anchor: thank you. anchor: surely an interesting day also for the markets. greece, we hear, can look forward to some nice transit fees with the turkish stream pipeline. also, the ecb has decided to keep the money flowing through the greek banking system. but when i look at the graph behind you, does not make any difference on financial markets, does it? reporter: it does not make a difference in frankfurt, but it does make a difference in athens. stocks increasing their at least a little bit. people are taking their money out of their bank accounts on a big scale. we're talking about one billion euros that went out of the bankin

mr. tsipras's government has never been serious about securing a deal. >> people are totally against privatization, free-market capitalism. they want to have a social society. in their mind, what are they doing? the real world is a disaster. reporter: with events here and in brussels changing so fast greeks anxiously followed every piece of news, knowing what happens now will affect the lives of everyone here, young and old. kathy adler, bbc news, athens. katty: i am joined by austen goolsbee. what do you reckon, is greece in or out of the eurozone? austen: i think eventually they are out. fundamentally, what happened in greece is, back in 2010, after a period of profligacy and big deficits, they could not pay the money. they were settled with a lot of austerity and structural reforms. but fundamentally, they did not get any debt forgiveness. even if they vote yes on the referendum, all it will do is extend for six months the very same crisis. we will just be back to the same place. the do not have the money to pay, so it is not going to work. katty: so much chatter in europe recently has been, gr

mr. tsipras remain in the prime minister's seat.t will be a tense time because there will be another battle here in greece to get measures passed. >>> a heat wave in pakistan's sin province has killed more than 600 people. the temperature hasched 45 degrees celsius in one city. more now from gerald tan. >> reporter: southern pakistan is sweltering there is widespread heat stroke. hospitals are treating hundreds of patients for heat-related ailments. >> translator: her blood pressure shot up because of the intense heat. the stroke has affected her hand and leg. >> reporter: most of the victims have been the elderly, this is the muslim fasting month of ramadan, and many people have food and water during daylight hours, and the electricity collapsed because of increased demand. in this city used to severe power cuts, many are criticizing the government. >> i have no water or power in my home. i have been wandering here and there for an hour to find ice. i finally got very little ice. >> translator: the government is responsible for thi