Youre welcome to the pulse live in london. Our top story. Chinas secondquarter gdp beat estimates. Rising 7 from a year earlier. 7 , a, im always a skeptic. Coming in bang in line with what they wanted to achieve. What are these numbers . Andy you are right to be skeptic. It is a bit like last year. We had a slow start to the year. And a slow first couple months, but now it has picked up again. Exports being better. Consumers are back into the game. House prices recovered. It was enough to get gdp up to that 7 figure. Ill gveive your one anecdote. Cinema sales boomed, which gives an indication that the high street is actually spending a bit. Manus a take away from that is buy popcorn. Does it mean where in for a better second half . These numbers are better than the market hoped for. It depends on whether there is more rate cuts and more support given by this administration. Enda it does. One wild card we have is the stock market. We know the story about the huge gains in june. Then we have had this correction and we sit weeks. How is that going to pan out in the Third Quarter. Secondquarter growth had grown because of all the activity in the share market. That will not be there in the thirdquarter. You are taking away one driver of growth. There is a lot of industrial overcapacity. A huge overhang of Housing Stock that has yet to be sold across china. There is plenty to keep a lid on growth for now. Manus thanks for wrapping those numbers up for us. Lets bring in alexander friedland, ceo of gam holdings with 130 billion under management. Great to have you with us. How worried are you about china . Alex i am not so worried for a couple reasons. First you are seeing divorce and the underlying economics. That is what the market is telling us with the gdp numbers. Second as an investor, you have china h share, hong kong are quite attractive because there has been a saw. A shares it is hard to get comfortable with because when you have so Many Companies listed, it questions the fabric of the market. Manus as you said, the differentiation is that you believe fundamentally that china will sustain these levels of growth because weve had various debates. We had Morgan Stanley saying that china slowdown kent dip us into the next can dip us into the next recession. Do they present opportunities for you . Alex that is definitely a take away. There are opportunities. Youve had selling due to march impressio margin pressure. Im not so much in the worried camp because i do believe there are a number of policy options china has, including real quantitative easing usage usually deserves. So, if anything the last two weeks has told me that china will do whatever it takes, even to the extent of doing something considered truly bizarre which is what they have done with the ashares to keep the story heading in the right direction. Manus before and move on, do you think that you will see more policy initiative from the chinese . Alex i do. China shot themselves in both feet with what they did. They were on a path of saying we are becoming a hegemon and were a mature market and you can depend on the stability. Then they pulled the rug out from underneath. The message is not so easy to become in the capital markets. Manus there is a long way to go. I was reading through your notes. I think we have an image. You referred to an author where he tells four central bankers that broke the world. Alex the lords of finance. Manus are monetary policymakers poised to break the world again . My question to you is this 63 of the global institutions have increased allocations to developed markets in the six months up to april. Are policymakers taking us to the edge . Alex when i was trying to make the point was that because of concerted loose monetary policy, which we have seen from all the village markets, what happened . Fixed income yields have come down. You have to go further out on the risk spectrum, more into equities. That is happening at the wrong time. Just as we start to see increased market volatility. As we start to see the bulge th at is producing more elderly less productive workers. When there is a market correction, what is going to happen . You will see market to market losses for Pension Funds that represented different Asset Allocation than they have done for 30 years. At that point, whos responsible for this . What we will do is we will point back to the way the Central Banks responded to the 2008 crisis. Manus where, everybody is searching for you. Where is your biggest reach for your with some risk parameters around it . Alex its not like theres any secret sauce. European equities look more attractive to me then u. S. Equities, because you have that tail end of oil reasonably attractive currency. And huge q. E. In europe. And the u. S. Is heading and the different direction. Manus you are going to hang out with me a while. Alexander friedman, ceo of ga m. The greek Prime Minister suppress says he agreed to do a deal with the european creditors with a knife to his neck. That comes as the countrys Parliament Today votes on the measures set out in the agreement. The International Monetary fund says that greece needs debt relief far beyond what europe has been willing to consider. Theyve downgraded its growth. The central bank thinks that gdp will increase 1. 7 this year. Down from a 2 forecast in april. The bank of japan will continue to expand the Monetary Base at an annual pace of 80 trillion yen. The uks largest luxury goods maker burberry has reported a 10 increase of firstquarter sales. We tell revenue advanced 407 Million Pounds in the three months up to june, but that was short of the 414 million predicted. Every shares are trading down 34. 4 . Amazon is celebrating its 20th anniversary with a oneday sale that it says will be bigger than black friday. Its prime day will see thousands of deals on offer but only available to amazon prime subscribers who pay for unlimited next day delivery. The Federal Reserve chair janet yellen will address u. S. Lawmakers later. The testimony comes after she said last week that it will probably be appropriate to raise rates later this year. Which nicely brings us to our twitter question of the day. Carney or yellen . Who will raise rates first . Lets take a look at what else is on the pulse. 9 30 u. K. On employment and wages data. That will be interesting for the bank of england. And thats one week on from George Osbornes first budget. 9 35, we take a look around londons altra luxury lanes for a hotel which has reopened after an 18 month refurb. 9 50, meet the german who is hugging it out in athens. This is an entertaining video. Stay tuned for that. Manus breaking news. Coming from barclays, the deputy chairman has is is going to step down from the board. He will join worldpay. This comes a week after john mack pharrell John Mcfarland the chairman has taken over as acting ceo. It has all changed over at barclays. The deputy chairman will step down from the board and join the worldpay board. We will keep an eye on that story as we go along. Ok thats it for barclays. Lets turn our attention back to the main story, the focus in athens. The Greek Parliament will fit a vote on the measures set out with the agreement and the european creditors. Alexis tsipras the Prime Minister, said he agreed to the deal with a knife to his neck. Let me tell you the truth and allow me not to paint a beautiful picture. The night before the previous one was a bad night for europe. It was not a knife it shall be remembered in the future believing that some steps are made towards the values of European Solidarity and democracy. The result of the euro summit was the result coming from pressure put on a country and out of people who are decided in a democratic way. We were made to go towards the wishes of the most powerful people in europe within circumstances of blackmail and suffocation. We had two terms on the table. First, leave the eurozone. There was a third version, the schauble version which was not to go bankrate leave the eurozone upon an agreement. Manus pretty stern words from Alexis Tsipras. Live pictures from the Greek Parliament where the debate is going through. They will vote on the measures put in front of parliament. The imf is continuing to criticize the deal, saying it fails to offer enough debt relief. Lets get more detail with david in athens. David, let me start with you. Alexis tsiprascomments were fariirly passionate talking about this is deal being done likened to a knife at his neck. Is that going to impact the vote today . David i think this was an opportunity to make the case to the greek people. He also used an opportunity to talk about a number of the points in the plan that he consented to. He talked about broadening the tax base, raising the sale tax something that he called the rational but something that has to be done. He talked about pension reform, raising the retirement age. He said that the something that greece should have done. It is not progressive for a country to have people retiring at the age of 50. Parliament is meeting now in committee. That is supposed to continue until 6 00 this evening. There will be a short break and the full parliament will convene. We expect this to go late into the night. Consensus seems to be this will pass but Everyone Wants to have his say in parliament. Manus everybody does. Were just showing those pictures of the parliament at the moment. The banks are still close. The bank holiday has been extended. And nobody seems to know where the bridge financing is coming from. This is again another rather perilous situation. I am seeing notes talking about, you may need to issue ious. We are far from settled on this greek sinner. Scenario. David absolutely. There is great concern at the banks of not opened. This is something that Olivia Sterns asked the Greek Economy minister. I think as soon as the financing from ecb is back into the picture, which will take place just after arguments in gr parliaments vote for the new agreement. Olivia germany does not opendebat e till friday. They will open this week after the ela is back into the picture. David Olivia Sterns talking to the Greek Economy minister. There is a lot of uncertainty about when those banks will open again. Manus lets turn our attention now toh hans in berlin. The imf. This is fascinating timing in terms of their analytics. Once again, they stand behind lack of sustainability in the current form in the equation. Hans this debt sustainability arrived in brussels over the weekend. As everyone is going through these marathon negotiations sunday night, they knew the imf had huge concerns about the debt sustainability of greece. If you look at the latest numbers, they put that percent of gdp at 200 . Their old projections 170 . Heres a quote from the imf analysis. They said greeces debt can only be made available through debt measures that go far beyond what europe has been willing to consider so far. Even this morning, we continue to hear from the german finance ministry, no haircuts. You could maybe have a reprofiling or extend the maturity. Germanys you is basic. The Interest Payments on debt leaving aside the headline number, is quite low. Here are three suggestions the imf offered as waste on titus not. Untie this knot. They talked about extending the maturity 30 years. Then they talked about explicit direct transfer from one european account to another. That would be from the german treasury to the greek treasury. That is not going to happen. The thidrd offer. Debt haircut. Germans made it clear that will not happen. To what extent does mr. Tsipras use the imf to try to bring along his party . Mr. Tsipras has been running against the imf but the imf is making an argument that is sympathetic to mr. Tsipras position. Manus that debate will continue. David in athens. Hans in berlin. Thank you for joining us. Alex you have been listening to that debate. The timing of this report is fascinating. They talk about again a debt peak of 200 . Talk to me about what the imf are saying. Alex i think the imf is calling a spade a spate. I give them credit for this. Because if we sit back and remind themselves ourselves, when you have the heavily indebted country, what is the way out . You can grow your way out. The economy is not growing. You can inflate your way out. They do not control the monetary policy. Or third, cut expenses. Cannot be done. Why . They have already been cutting. Now they are adopting a deal which hocks 50 billion of their assets . The real option is debt relief. It is not palatable in berlin. What is the other option . Extend the maturities and hope that during that period you have fiscal union in your. In europe. I think that is the crocks of the issue. It is what the United States went through when we moved from the articles of confederation to the constitution. Greece, yes we talked about this. Greece is like West Virginia. West virginia has never been but a recipient of transfer payments from wealthier states. Yes people complain about taxes in new york and california, but you do not see them kick West Virginia out . I think the imf is saying, we need to give ourselves political cover that we will get there and we need to get to this emergency. The way we do it is by extending the maturitys generation pass the current politicians. Manus the timing of that. I mean forgive me the timing of what youre saying. Do we really have that latitude of time . The extension of those maturity something that might not happen until the end of this year when the nuts and bolts are dealt with. Alex you can lose the patient while youre trying to plan their surgery. You see debate. Can we use the esm as a temporary payor . Then you see osborne saying wait a second. I will not have the u. K. On the line for 1 billion. Manus the European Commission set to propose the effm for the greek bridge financing. Again, even this morning as we wake up, they still do not have that bridge financing. Lets take a step back. We should have been more focused on china. Less focused in terms of greece. The European Equity story. We bounced off lows. We saw the primitive the periphery market. How do you look at european equities relative to the u. S. And to china exposure . Alex first to your point about focus on china and not on greece. Greece is not so much an economic issue as a political issue. In terms of europe overall, i think we can fall back on three basics. Compared to the United States valuations are more attractive. Nice tailwinds with Energy Prices that are cheap. Youve got oil that is cheaper. The big issue will be what happens to the currency. Her has been some profit taking which has driven down equities. There has been some some profit. It has been more consensus to say that european equities are attractive. Cyclicals are attractive right now. The question is the u. K. And will we see rates rise and what will that do to exports . Manus that is going to be the crux of the matter. Alex friedman ceo of gam. It has been 20 is for amazon. If you have not signed up, you could. That is quite an achievement for a business. That has posted its first profit in five years. As it continues to reinvest in this business at the expense of its bottom line. They make no money. In my world, you are not an real business into you make money. I have a hard time with his is is that do not make money. Manus hows that . Caroline hyde, i know you have interviewed steve ballmer. Over to you. Caroline he is quite the character. But many are looking at amazon prime day. To celebrate the 20 years, they are trying to lure more people in. Established in 2005. Basically promising a bigger day than black friday. Many are thinking this could drum up 2 billion worth of sales. The caveat you have got to sign onto amazon prime. You have got to be able to do a 30 day subscription. You might be a user. 14 million already are. You can get your deals delivered to you within two days. I have to say, if you follow twitter. Its how harris. It does not seem to be living up to expectations. Everyone is complaining that all they can get their hands on his deals on tupperware. You can get kindle fires. Theyre luring your towards their own products. Headphones bos headphones. There are competitions you can enter. Again, trying to lure you to amazon products, subscriptions and tv and music streaming. You can enter for to listen to prime music. If you enter a competition, you can win an amazon made series. This is no longer in femurs company. This is a producer this is no longer an ecommerce company. This ias a company that was to beat out the competition like netflix. Like hulu. They want you to use amazon prime not only to buy more but to stream tv and music and become obsessed with amazon in your life. Interestingly, 20 years its managed to survive. It survived the dot come bu bubble. It was called relentless. It was also called cad abra. It is about reinvesting. Manus im searching for the tupperware as we speak o. Up next u. K. Unemployment and wages data. Stay tuned for that. Manus welcome back to the pulse live from london. Breaking news on the u. K. Data front. Average Weekly Earnings come in at 3. 2 , a rise above last months number. Break these numbers down. Mark after the space of five years. Total pay, 3. 2 average weekly wage. Quickest pace in more than five years. That may reand first growing expectations within the bank of england that we might need a rate hike. That may reinforce the growing expectations. Prior to that an increase of 2. 7 . Weekly earnings excluding bonus is up by 2. 8 . The Unemployment Rate is just inched higher to 5. 6 . Interestingly jobless claims have risen rather than declined by 9000. They have risen by 7000. The big, big news its the total pay rising by the most in five years by 3. 2 adding to the noise yesterday from the governor of the bank of england mark carn