You are very welcome to the pulse. European leaders are speaking openly about the possibility of a grexit and say they now have a detailed plan in place in case black scenario happens. They have said sunday is the deadline for greece to accept a rescue or risk in booted out of the euro. For mroore we are joined by guy johnson in athens and hans nichols in berlin. Hes i nn brussels, excuse me,. Lets talk to guy. Guy, obviously, these banks are still close. Whats it like in greece at the moment . Guy well, people are beginning to wonder when they are going to open. What is interesting is youve got money pooling in certain areas of the economy and we need the Banking System to restart in order for this money to start moving around the system in the way this meant to do. The question is come next week what kind of money are we talking about . There is deadline come sunday. People are talking openly about a grexit. It is not going to be the flicking of us which. Youre not going to see greece switching from the euro to the cracdrachma. We need to get liquidity into the system. Companies need to be able to function again. That is absolutely critical. Were looking at a situation clearly that greece did i55 itself in did not expect to find itself in. Referendum was meant to give mr. Tsipras a strong hand. But mr. Draghi says the banks have a few more days, and he seems that greece has got a fee more days and the line is heartening out of places like berlin. Manus the german voice very different to the french force. Voice. Lets turn attention to hans. Hans, youre in brussels. In terms of greece its about submitting acceptable proposals. What is the possibility of that happening . We heard a variety of opinions. Walk us through the smorgasbord of reaction. Hans we have a pathway to a deal, a timeline. Overnight, we have a pessimism that greece will accept proposals that are acceptable. Angela merkel seem to voice that went to talks about how difficult it would be for greece to submit proposals that would be accepted. Manus and hans lets just there in mind, we are looking at live pictures of moment in strasburg. Theres tsipras with his headphones on. The real political protagonists are taking to the stage. Where waiting to hear from tsipras. Coming armed with rhetoric and no detailed. This seemed to have irked a lot of the political protest protagonist yesterday. Hans the french have been most sympathetic, may be matched by the italians. What weve heard is that there is frustration with the greeks side, that they did not offer specifics. They arrived in brussels without a firm plan. Now the deadline is on friday. Today do have to submit their formal level to the european stability mechanism submit their letter. What is he going to do . How easy going to tweak the last offer to make it acceptable how is he going to tweak the less often . The dtutch Prime Minister said, we still hope for a miracle. Manus ok, lets see what tsipras actually tells the parliament today. Thank you very much. Guy johnson on the ground in and in athens. Hans nichols and brussels. Trevor, great to have you with us. What a morning. China is falling out of bed. Tsipras is about to speak to parliament. Can the greeks put something on the table in the space of five days that will pull us back from this abyss . Trevor i think they can put something on the table. There is talk about the juncker plan softened here and there. Something talked about a week or two ago. One of the issues is rebuilding trust. But i think also it is not totally clear that greeces Better Future is in the euro. Manus ive interviewed a couple of different people that say gold devalued. Get on with yourself. Look, as a jumping off point, is that a realistic proposition . It is not an export led economy. 33 of business is export to. Trevor the choice is to be in a Monetary Union where you have no control over interest rates, no ability to devalue. So what is happening is sort of a wage deflation going on to try to make greece competitive. Theyve had a sixyear recession. Government debt has gone up substantially. It is not clear to me that there is a clear future for greece in the euro. On the other hand, leaving would be a lot of pain up front. I think a two years down the line, they would have devalued and feedback on corsican. Back on course again. Manus what would a devalued drachma look like . I. O. U. s going onto the street in greece. Trevor if i want to buy Something Back from you, i have to give this back to. They will have to use paper money. Euros are paper money when it comes down to it. I think it would work. It is not the first time it wouldve happened. It would be chaotic. Some people think that that is kind of what tsipras has been aiming for a long. The referendum less than go back to the europeanleaders and say they do not want to be want a deal but we want to stay in the euro. Manus were ready. We have got a detailed plan. Ready to rock n roll in terms of grexit. Donald tusk who was speaking as you and i started, tusk saying that no agreement maybe to the bankruptcy of greece. That is the critical point. The banks are insolvent. If im a man sitting in athens streaking a breaking a coffee, my money left in banks gets torched. Trevor there is a bit of a risk of that. Broadening out from this, the key question is how much should this be worrying the s p . How much should it worry Global Stock Markets . Greece is less than 2 of european gdp. 1 of european stock mark capitalization. Big deal for greece. It has huge political ramifications for the rest of europe. This is one of these issues were the markets focus on its very intensity at the moment. In a few weeks time, there will be people on wall street saying where is greece . Manus it is interesting how the ballot test if this morning. We will spend time on china later in the show it is interesting to see how the balance has shifted this morning. If you look at investing everybody was moderately overweight euro. Are you holding on to that position . Im all in. Trevor im overweight japan and europe most of all. There has a lot of confidence around greece but you look at the money supply and they are exceptionally strong. Spain and ireland are strong. There is a possibility to confidence gets affected. I would not rule that out. Second half of the year, europe is a Strong Economy and the mark is looking pretty good. Manus so you are holding firm with that. Youll stay with me. Heres a look at what else is on our radar this wednesday morning. Barclays has announced the surprise departure of chief executive Antony Jenkins. The banks definitely chairman said, after reflecting long and hard on the issue of leadership, it became clear that a new set of scales were required for the period ahead. The search for his replacement is underway. Current chairman John A Kurland will be John Mcfarland will become executive chairman. Plunging 8. 2 , authorities announce fresh measures in an attempt to stem the rout. Has seen the shanghai composite slumped by 30 since the june 12 peak. 1300 companies have been halted from trading. George osborne will deliver the u. K. s first conservative budget in 20 years. The chancellor whose Election Campaign played heavily uneconomic prudence and the need for more austerity. With strong his newly granted authority to slash as much 12 billion pounds from welfare costs. At 9 40, we will speak to the ceo, she joyously in the studio getting her take on what british businesses want for George Osbornes budget. She joins me in the studio. We will ask the same of simon woodruff. Of course special coverage of the u. K. Budget on bloomberg. We take George Osborne speech to the house of commons at 12 30 london time. And we have a special Program Giving our viewers a take on the summer budget. Featuring politics, intelligence, and business theme s. Where going to cross to Alexis Tsipras whose taking the floor at strasburg where he is greeted by applause. Lets listen in. I find myself here only a few days after the resounding verdict of the greek people after a decision was reached to give the floor directly to ask the greek people directly what their views for their views and to be an active part of the negotiations affecting the future. A few days after this, we have now been given a mandate to redouble our efforts in order to get a socially just and economically sustainable solution to the greek problem. Without repeating the mistakes of the past. To a period of neverending, an impasse of austerity which trapped the accounting which trapped the economy in a recessionary vicious cycle. The greatest response by the greek people at the time when there were such precious with the banks closing, with the media terrorizing them into feeling that no meant an end to talks with europe, and and to negotiations with europe. I think that time they stood up and were counted. This is a voice of a democracy. And we have to listen to what they said. This was a courageous choice by the greek people and this is not a decision of breaking off negotiations with europe. It is one of going back, turning to the founding principles of european unification. As the fount of democracy and of solidarity going back to Mutual Respect and going back to equality. It is a Crystal Clear message. This is a Crystal Clear message that europe our common european edifice, the European Union will even be democratic or it will have immense difficulties in surviving under the challenging circumstances. These ongoing negotiations between the greek government and its partners are to reconfirm the dual forms of respecting europe both for the grand rules of the European Union and also full respect for the democratic choice of our peoples. My government, i myself personally, and our government came to our government fiveandahalf month ago, however the programs have been in force for the last five and a half years. And i fully assume this responsibility forward what has happened in the course based five and a half months. However, i think we must, if we are being sincere, we must recognize that the basic responsibility for the impasse which the Greek Economy find itself in ahdnd the impasse europe finds itself in they extend back five and half years with the implementation of programs which have not helped europe to get out of the crisis it faces. And let me assure the house that apart from the crisis, we will continue with reform undertaking. But lets not forget the fact that for the past five years the greek people have made a tremendous effort for adjustment, a very harsh and difficult process of adjustment, but this is exhausted the patience of the greek people. And this is not just something which has been in greece. Other countries, we respect the sacrifices they have made in the difficult decisions governments have taken in other countries as well. And many European Countries austerity programs have been put into effect. However, nowhere have those programs been so harsh and so longlasting as in greece. Its no exaggeration to say that my country has over the past five years been transformed into an austerity liberatory. However, these experiments all of us have to accept has not been a success over these five years. We have seen a skyrocketing of poverty. Unemployment has sorared. Social marginalization has interest, as has the public debt. Which is now 180 of gdp. And today, the majority of the greek people this is the simple fact we have to face them except, the majority of the greek people feels they have no other choice other than to demand that they be given a way out of this impasse. They have expressed this in the most erect democratic way possible and we have to implement that decision. We demand an agreement with our neighbors but one which gives us a sign that we are on a longlasting basis exiting from the crisis which will demonstrate that there is light at the end of the tunnel and agreements which will bring about the credible and necessary reforms that is clearly necessary but we have to recognize over the past five and half years reforms have been put in place which have been a burden on what pensioners andcan t ake what employers can stand and ordinary citizens. We need a policy of redistribution necessary for the middle class, for the working class. And we must have a baissis on which we can proceed. Because we have met our partners one which involves credible reforms with an acceptable burden sharing which does not have recessionary effects. We need to ensure the mediumterm funding of our country with development and growth programs, because we have to put on the table an agenda for growth because, otherwise there is no way we are going to exit from this crisis. And our prime objective must be to combat unemployment and to encourage entrepreneurship. Our proposal contains the demand for the admitted undertaking that we will see january dialogue, a genuine dialogue and negotiation in order to get an answer to sustainability of public debt. We cannot have taboo subjects. We Must Find Solutions to the real problems, however difficult the solutions may be in practice. Our proposal has been submitted as one which meets those requirements. It has been put to the euro group at the summit we had yesterday of the eurozone. And today we are working with the support in the next two or three days, we have undertaken to bring forth concrete proposals in detail. Im confident in the next few days we will be able to meet the obligations of this crucial time in the best interest of greece and also for the eurozone. And can i say this is not just the economic it is also in the best interest geopolitical he of the European Union. Let me be Crystal Clear in this area. The proposals by the greek government for the findings of its applications its obligations and restructuring of its debt are not designed to provide an extra burden for european taxpayers. The money set have been afforded to greece never got down never trickle down to the greek people. This was money which was given in order to save the greek and european banks, but they never trickle down to the ordinary greek men and women. And in addition, starting in august of 2014 we have got to disperse a tranche under the bailout which continues until the 30th of june. Repayments of 7. 2 billion. And it was not our government which was in power from august of 2014 until 2015. The fact is the program has not been implanted. The program was not implemented then. Not because at the time there the ideological circumstances we had. It was because the program then and the program now did not have social acceptance. It is not sufficient for it to be right. It has got to be workable. It has got to have the public support and acceptance. Ladies and gentlemen, over the same period, greece has been involved in negotiations because of that 7. 2 billion and disbursements. We also had a duty we are under an obligation to repay to the same institutions which we provided the financer. Repayments of 17. 5 billion euro s. And that was money which was taken from the resources of the greek people. Esteemed members, despite all i have said, im not one of those politicians who claim that those responsible for the woes of greece are wicked foreigners. Greece has gone to the verge of bankruptcy because for many years the government of greece have been creating and strengthened and enhanced correction. They have created and nurtured of nexus between political and economic power. They have allowed tax evasion to run riot. And this is not right. In accordance with Credit Suisse 10 of grfeeeks have 56 of the national wealth. And 10 at a time of austerity, they have not borne their share of the pressure. This is major injustice. And the bailout programs have not made things better. They have made things worse. They were supposed to bring about reforms, but those reforms have not improved the tax collecting mechanisms which collapsed under the excessive zeal of enlightened and terrified national officials. None of the reforms of health. Have helped. When it comes to the nexus between the political establishment, the oligarchs and the banks. None of othe reforms of the reforms have improved the efficiency of the mechanisms of state, which has become inured to working in the selfish interests, elston interests rather than the common good vested interest rather than the common good. These proposals have now been put on the table. Our proposals, they are based on genuine reforms whose purpose is to change the face of greece. These are reforms which previous governments and the old political regime did not want to put in place. They did not want these changes to take place in greece. That was not the purpose of the bailout. Effectively tackling the oligarchy and the curtail of vested interests, we have now got to turn the page of that the way that National Finances and unemployment and the labor market are covered, we must now get a handle on developments in those two areas. We must he able to implement the priorities of our government and get traction on those difficulties. Those priorities are ones that we are going to look at with our partners. Today, we come with a strong mandate from the greek people and we are determined not to ha ve a clash with europe but to tackle headon the and change the mindset which has taken us and taken the eurozone down. Ladies and gentlemen, europe finds itself at a crucial crossroads. What we now call the greek crisis is only a manifestation of the inability of the eurozone to find a lasting solution to the selffueling debt crisis and what we now need is a european and this is not exclusively a greek problem, this is a european problem. And european problems require european solutions. European history is a history of conflict, but conflict leading to compromise. And its also a history of convergence. It is a history of unity and not divisions. And this is why we talk about a united europe and that its not a divided europe. At this time, we are told to produce a productive and fair compromise which will avoid a break off in negotiations. And this is in line with the traditions of European Union. All of us are taken the measure of the situation. I believe that together we can rise to this. Considerable challenge. Thank you very much. [applause] ma