I am manus cranny. A big day for greece. And the last hour, the government repaid 5. 8 billion euros of ecb, imf, and bank of greece. Angela merkel said she is prepared to talk about debt relief but ruled out any haircuts. Chancellor merkel greece is in relief, private creditors allowed in debt cuts with lower Interest Rates. We can consider as they are part of the mandate was the program has been review successfully, we will discuss that very question. Manus the banks have reopen today after being shut for 2 weeks. Lets put in context with our reporters. Elliott got been and Paul Elliott Goggin and paul gordon. The banks open, a little bit of a rush. What is the feeling of the street . Reporter you will see another lazy day in agrees. Security guards having a little chat among themselves now looking particularly concerned anybody will vent their fury after not being given for access to their money. A real difference. Now you can take out 420 euros for the whole week. Over the course of the week, it is the same. The difference is you can take it all out in one go and go inside the bank and deposit checks. You can access your saved deposit boxes. There are capital controls in place. People cannot get access to all of their money or transfer money overseas, for example. Many restaurants and other places are demanding cash only as was the case in the one i had dinner at last night area the restrictions are a little bit less strict than they were before this morning. Manus i have to say the is very typical tv. We are showing pictures. What are the queues outside one of the National Banks . It is trying in some way to get some kind of normality back into the system that ground to a halt. Paul, i want to turn our attention to you. One of the biggest creditors is the ecb and they are said to receive 4 billion euros, 3 billion in principle. What the next then . The big issue jumped over this morning. Pual paul a little bit of rise. No doubt it will get there and the ecb and imf gets paid. The bank of greece gets paid and that was quite critical. Not paying them, the greek government risks sending the Central Banks into monetary financing territory which would have been illegal. We have seemed to get past tah that point. Mario draghi said last week and is not controversial is a greece needs the money. Not according to Angela Merkel this morning. And schaeuble and the finnish Prime Minister and not a nominal cuts in the base value of that debt. It will be a few discussions in the coming weeks about exactly what should happen given Angela Merkels comments on sunday she wants to see greece go through the first round. It might not be the coming weeks but coming months the for with good decision. Manus paul, thank you. What ever merkel has to say in regards to debt relief it has opened pandoras box in many ways to what happens the next area elliott, thank you for being on the ground in athens. Paul, we would check out you later. Later on, we will speak with the greek minister. Also from athens, the chairman of quest holdings. Theodore will join us. And a little bit more on how we should put all of this in perspective, chief european economist. Great to have you with me. Here we go. The imf. The ecb. What does it mean for the ecb in terms of liquidity for greek banks . Guest ecb president mario draghi said acting on the assumption greece will remain part of the eurozone and that means over the next couple of weeks as we see the negotiations continue the ecb will gradually increase the limits for ela in order to give the banks more breathing space. It does not mean the limitations on the Banking Sector would be lifted immediately. We see many restrictions remain. They would have to say in place. More room for recovery. Manus we saw the quantum outflow of funds in the past six months. The big money is gone and mario draghi said it is literally less. The ecb will keep an eye on the level exiting the system and that will be crucially important. Reinhard cluse absolutely. Mr. Mario draghi said at the ecb facing an interesting balancing act. It wants to make more room for the greek banks to provide liquidity. On of the other hand, you do not want to open the Banking System in one big rush enhanced trigger another deposit run. Manus probably at all costs. The other knows i found fascinating by repaying Central Banks today it changes the complexion and opens the debate about when or if greece could be included within qualitative easing. I find this fascinating. Run me through. Reinhard cluse first of all, the greek government would now have to come 20 agreement with International Creditors on at the third bailout. Once the first disbursement of the money has been done, we assume that might be sometime in the fall and implementation is deemed credible, the ecb could include the greek government bonds in is qe program again. They could do that for perhaps two months until the first Program Review starts. Then of according to the ecb rules on qe the inclusion would have to stop again until it is concluded. Manus it is some of the finer nuances the exposure ecb has to greek bonds and level of 33 of the bond market issues for youthey come issues. They come back today. Reinhard cluse they do. They must hold more than 1 3 and today we will drop below 33 a greece could nominally be included. But, given the negotiations on the new program are still ongoing, we need to wait the conclusion. Manus for so Hollande Francois hollande announced on sunday. What threatens us is not too much europe but a lack of it. [laughter] manus that sounds like a quantitative step. Does he have a point . Reinhard cluse a matter of political discussion. He might indeed. If you read the Statement Given by the president and centralbank commissioner is so forth i think the next steps are work on the Capital Markets and perhaps fiscal and this will be significant in quantum steps and european government is something for the future. Manus just too much to be done. Two governments. Angela merkel, when the First Successful a similar smit of the program if assessment of the program is associated apropos at some form of extension in terms of relief for greece. That is a bit of progressive step from merkel . Reinhard cluse not necessarily and the German Government was aware debt relief would have to happen and they said not in the form of haircuts but extensions of maturities and lower Interest Rates. It has to happen and as the price germans had to pay for keeping the imf in the boat. Manus reinhard cluse you will stay with me. Reinhard cluse from ubs. What else is on our radar . Barclays about 25 in shanghai in the coming years. Cell carries on program at the bank will carroll programs to cut costs. The efforts code leave it with a less job. It is the bank trying to control programs and cut costs. Firsthalf profits and dropped the move after the bank took a provision to settle a tax dispute whether the United States. Bloomberg spoke to the ceo earlier today. I think as we said we are pleased of the results and we are in advanced state of cooperation with the department of justice so we are confident and committed we should be able to reach a final set by the end of the year. Manus stocks in china close up after a volatile day of trading. The shanghai composite index fell to the 4000. 11 while 1 5 of the market is frozen. The titans control. Online landing was part of the fuel behind the nations stock search and the year before surge in the year before. Coming up is gold losing its shine . Why the metal is heading for a next drop . One of our top stories. Plus football in asia. Why the region is vital to the clubs future. Later, expansion in europe. We sit down with the ceo. Stay tuned for that. Manus welcome back to the pulse. live on Bloomberg Television and your phone and tablet. A quick look at where the gold market is. A fiveyear low. Futures down 1. 6 rate we bounced off of the lows. And 1113. That is the gold market. A short, sweet twitter question of the day. There we go. Gold is in a fiveyear low, high or sell buy or sell . Do not send an answer about it is when the fed decides on the Interest Rate. We have reinhard cluse. Thank you for sticking with me. You are relatively upbeat on europe and even moving past. With that that in mind, the euro is moving lower. Reinhard cluse i think now with the greek drama somewhat behind for down, i think the chances for continuation of the european recovery is there. We have policies in very low inflation and oil prices which help the consumer and moderation of fiscal austerity and healing of the banks lending channels. All of that will support the recovery in the eurozone. Manus a lot of people talk about the rebalancing between the north and the south in terms of the nordics and germany relative to the periphery. From the feedback you get from periphery, are those structural changes wearing through and the likes of portugal and spain . And will see in ireland. Give us evidence to help with that story. Reinhard cluse it is clear evidence. In spain, we have growth picking up substantially and the labor market is recovering. All of this gives new confidence to the household sectors where people consume again. 2 , 3 growth is something very realistic and the government is expecting more. We see in portugal, for example, the government has done a good job despite difficult political conditions. We also see signs of credible science of italy progressing. We also have a more realistic outlook of the economic recovery will get a boost from structural recovery going forward. Manus any concerns at all from the fed and the u. K. In theory to pull the trigger to get us from zero buying rates . Would that have a temporary impact or less bothered by it . Reinhard cluse we all have to be aware we come from extremely low Interest Rates and the fed now we believe in september moves toward normalization with a first rate hike. It would not be perfectly smooth process. That is likely to lead to a list in a bond yields in the u. S. And suck up the bond curve so in europe, it would apply to tightening conditions to a certain degree evening europe. Not perfectly welcome perhaps from the european perspective but a reflection of the fact that others the u. K. A u. S. Are further advanced so u. K. Have to live with it. Manus when you look at the currency, eurodollar and moves, currency. The dollar is marching higher. The dollar is really up in a big way. A big, of turned away. How much Euro Currency weakness . How much do we need to focus on to validate . Reinhard cluse if you recall that in may last year eurodollar was at 140 and we are significantly lower. We have seen a strengthening of the euro and we for now the Interest Rate hikes by the fed which we expect as of september will continue to strengthen the dollar against the euro. But over time as the european recovery proceeds, i think and greater signs europe is through the worst and pave the way for the euro to, back. Manus lets see how it works out. One step forward for greece and two steps forward for europe. Reinhard cluse. Coming up, barclays is looking to cut costs and that will mean jobs. What are the details of the story . Joining me next is our reporter on that. Manus welcome back to the pulse. Streaming on your tablet and phone and bloomberg. Com. Barclays is cutting costs and can see its workforce shrank by a quarter as they try to tackle shrink by a quarter as they tried to tackle costs. Richard, should i be more concerned theres little be a lot more job cuts, and then we talked about before . 130,000 employees as it stands for the moment. Richard 130 employees likely to be more cuts. The story is really an acceleration of the previous plans put in place by the former chief executive last year and he will cut 19000 and 90,000 employees over three years as they are working on the land. With the new executive chairman, those cost cuts are looking to accelerate those faster. That will include more job cuts to come. No firm plans at present, i have been told by sources. You would not imagine there would be one within a couple of weeks of that new eeo coming in chairman coming in. There is exasperation to cut more jobs. Manus that is why mcfarlane is here, his style so to speak. His moniker from years ago. There is this debate to be had between the Retail Business and Investment Banking business. Win or what kind of information gathering is going on . When will we know more about the strategy, 100 days . Richard partington absolutely, analyze what they can do. That is the key message today. They cannot do it overnight they have all plan in place. The Investment Bank was seen as under an Antony Jenkins per house. The future, they are filling rosier. And Anthony Jenkins perhaps. It is not clear given they want to make further cuts. Some analysts saying, Price Reductions and the bulk mostly for retail and back office area a lot of staff and the Consumer Banking operation as more people will banking online and mobile, they do not need as many people. Manus bill winters looks like he will accelerate over as standard johnson. Richard partington he will indeed and they are working on the program and they will report possibly in october. They have not given us a firm date. Real winters new team will be fully bill winters, new team will be in place. A man who was been with the banks of the 1990s, an old guard. He was a former righthand demand and does not have products reported directly to him. They go to bill winters. Moving aside a little bit for my greece. The Management Team. Moving aside a little bit for mike reese. Manus thank you. Keep up the good work. Coming up chinas heightens online landing as it tries to take control on its stock markets. Lending as it tries to take control of its stock markets. We will talk about greeces strategy of keeping one of the most Important Industries alive. Will you book of flights a greece, will you go to the islands and support this country in its time of need . That is live from athens a little bit later. Get excited for the 1989 world tour with exclusive behind the scenes footage all of taylor swifts music videos interviews, and more. Xfinity is the destination for all things taylor swift. Manus welcome back to the pulse. I am manus cranny. Up to speed with top headlines. Greek banks reopened for the first time in two weeks. Withdraws are limited to 420 euros a week. The ad is Stock Exchange remains the athens Stock Exchange remains closed. And the country will pay the bank of england, imf, ecb. At Angela Merkel spoke to a german broadcaster, she said she is prepare to discuss the matter once greece fulfills the first round of the bail out. She ruled. Any haircuts. Ruled out any haircuts. China up today. The shanghai composite recovered to the 4000 mark level well 1 5 of the market is frozen. Online landing was lending was part of the 150 stock surge. For now, out to beijing and our bureau chief. He joins me. From what i see with china at the moment looking to impose stricter controls in financing and rushing with almost as much the fed did. The controls first, ill line financing, is it really the culprit . All line, is it really the culprit . Guest it was part of the boosting and fervor you saw over the last year or so. Ill lie lending exploded online landing explosive online lending exploded. The lenders that was supposed to be intermediaries between people with money and Countries Companies with money but came a key part and clamped down on that avenue to cut down on the margin financing that had led to the boom. Manus run me through where we are. It looks like it may be speeding up again. We had slowdown and prices in prices which is how we try to run the metrics with pricing. Is a part of the turnaround . Nick wadhams it was like the property sector is rebounding a little bit. The biggest thing to focus on is prices for june seemed to have been largely unaffected by the stock market collapse. The market hit with a high on june 12 and tumbled, property prices for june were stable and up a little bit from the month before. What it seems to suggest is some report people were dumping homes to cover their marginal losses and the stock market and those were not a widespread and the Property Market which is such a key driver for the economy, it is doing all right and has not been too badly affected. Manus thank you very much. Bloombergs nick wadhams in beijing. For more of the rebound in chinas Property Market and argue why now is a time to invest. Our next guest russell. He manages 5 billion in real estate around the world and over 10 in china. Thank you for coming in. We heard from our bureau chief that perhaps we have seen the bottom of the Chinese Market would you agree . Guest what we saw in 2012 was access. We saw a raft of measures intended to cool off rising prices especially in tier one cities and have multiple effects area demand fell and inventories of begin to fall if you look nationwide now inventories have fallen from 18 months to 12 months. In tier one cities, beijing and shanghai, they fall to eight months. Supply and demand are in much better balance. In consequence, house prices rise by about 4. 5 , 5 nationwide and larger and more in the larger cities. It is not robust but showing balance. Manus is pricing getting more sensible . The fall levels are incredibly important. Systemic issues. Supplies beginning to rebound again as you said. The language you use the just things are getting you suggested are getting better. I know you have to differentiate. Russell platt if you look at income levels, they