Live in rome with the details on what could be the most deadly incident in the mediterranean. Welcome to countdown. Manus coming up on countdown, the s p is set to release a manifesto promising alternatives to austerity. Cameron calls up thatcher style plans. We will bring you the latest on the u. K. General election 13 days to run. Mark fishing boats packed with an estimated 700 people seeking refuge in europe capsized and what may become the most deadly tragedy in the mediterranean. Lets head out to Kevin Costello in rome. Good morning. What are the details . Kevin good morning. About 700 people were on board this fishing boat. The latest reports say that there could have been up to 900. Search and rescue efforts have been underway but they have only discovered about two dozen bodies so far. The chances of finding more are slim. Mark what has been the reaction, kevin, from european leaders . Kevin the reaction has been very swift and strong. The eu Foreign Ministers are meeting this morning and luxembourg to discuss what measures they can take. The italian Prime Minister has demanded an eu summit for this week to discuss what the union can do. Mark thank you very much. Kevin costelloe in rome today. Manus the Chinese Central Bank announced new measures to prop up ailing economy. A cut in the reserve requirements was laid out. David, a 1 cut in the requirement to bolster the banking system. David good morning. That is what we got over the weekend. It was a one percentage point cut in the ratio that dictates how much the banks have to set aside. What is clear from the move is that it is close to 200 billion freed up. Whether or not this changes the policy stance of the central bank whether it is tantamount easier or to help plug the massive amount of capital heading out of china is a whole other thing. First quarter, we saw a record drop. They simply had to smooth out the effects. This is what we got it takes effect today. 194 billion, and that takes the ratio down to 18. 5 . It is still fairly high raised on historical standards and global standards. Manus we have lost a david, filling us in on that cut. It is push and pull of the chinese at the moment, isnt it . Between the drop in the reserve requirements. Cutting back on the amount of margin lending prepared to tolerate. We can go straight back to david i was just saying to carolina and mark the push and pull between the liquidity for the banks that are the same time cutting back on the amount of margins. The Chinese Market we are up over 80 on the year. Up another 1. 5 for the day . David yes. If you take a look at the daily charts, i think we have changed directions, which highlights your point that we are looking at opposite forces pulling the market in all sorts of directions. We had the cut yesterday. It was partly to offset what they announced on friday which is that the Securities Regulator announced they are tightening up their margin financing because we have close to 200 billion in outstanding debt. That is the amount of money borrowed for equity. An unprecedented number of new accounts opened up this year because of this rally we have seen from the shanghai composite. At this point just about flat. Manus thank you. Caroline lets bring it back to europe because greece isnt backing down. The imf, ecb, and barack obama ramping up the pressure. Technical talks continued over the weekend, and there appears to be a new deadline of may 11. Lets get out to hans nichols in berlin. Hans, new deadline midmamay. Hans good morning. They will be taking stock of the talks going on that is the big moment. In some ways, the anticipation and urgency has been let down because we have this new deadline. However, it makes it dangerous. This will only increase pressure on all sides. What we heard very clearly coming out of the imf meetings that took place in washington last week was a great deal of frustration restoration mounting. Lesson how the finance minister of france put it. Too much time has been lost. Time is not limited. I want to Say Something clearly its something damaging happens, it will be great or greece and the greek people, not for the other countries in the eurozone. Hans and yet no sign of movement on the greece side. We just heard over the weekend there was an interview published by the deputy Prime Minister in greece saying we dont back down from our redline. The Energy Minister said, the socalled partners wouldnt be blackmailed. Lets do a quick recap of where all the parties stand the imf wants to see specifics. They want to see actual numbers being proposed. From the ecb, we have clear pressure. At the same time, mario draghi is saying that some changes are taking place they are in a slightly better position and greek banks are still qualifying for emergency liquidity assistance. Then you have the pressure from the finance ministers sure they are not talking about any contingency planning. One thing the eu is saying is what greece could do is have a public vote in parliament. Heres a quote from an interview we had it would be a welcome step if they agreed to reform proposals adopted by Greek Parliament without delay. In a Million Dollars in payment due today to the ecb from grace and are ever, we have some big payments coming up and the bond market is reacting negatively. Last week was the worst week for greek bonds. Caroline clearly, creditors are lightning on the pressure. But we have also had Barack Obama Joining on the side of the creditors. Before he had been sympathetic degrees. Sympathetic to greece. Hans this is a shift on the u. S. Position. They were criticizing germany for more austerity and now the u. S. Is saying istts up to greece. The secretary of treasury is warning it is a similar note struck by the chancellor. Mr. Osborne recently put on his analyst cap and said that the meetings this year were watch more were much more gloomy. One final note the ecb vice chair, member of the executive committee, talked about how there could be a time when greek banks cant find any partners. That is the interview that has just come out and we will read through that throughout the morning. Caroline keep an eye on how the markets react. Thank you very much, hans nichols. Mark the other side of germany today employees of Deutsche Bank voted to strike indefinitely at the bank considers selling. Lets bring in shane. Good morning. What options is Deutsche Bank considering, then, as part of this strategy review . Shane good morning. We have heard that all three options are still on the table but management favors two. One would be to sell one of its bigger german Banking Units and the other went to take postbank and bundle it together with others and sell it off in an ipo. Those are the two options being focused on. The third option, which has less support, is to take deeper cuts to Consumer Banking and its security division. It looks like one of the first two options will probably be executed. Mark what are the arguments for and against it from Consumer Banking . Shane Consumer Banking last year compared to all other divisions at Deutsche Bank actually had the worst return on equity and the highest cost compared to revenue. Some analysts are looking at the Consumer Banking and saying if you want to boost profit, get rid of Consumer Banking. Others are saying, you shouldnt overdo this because the securities division, which does generate a lot of money, is very reliant on deposits on the Consumer Banking division for funding. Rely more on funding from asset and wealth management. Mark meanwhile, what are the employees asking for . The postbank Union Employees . Shane they are looking for dismissal protection. The future of postbank is up in the air. The employees in germany a recently voted 95 saying they were up for an indefinite strike , strike without a griffin period of length. A given period of length. The future is not certain and we think it will be a couple of really exciting weeks coming out of the next b we have heard the supervisor board will be meeting to review the Strategic Options being looked at by management. Mark thank you. Caroline lets check in on our other top stories. In finland, the center party won the National Election. The selfmade millionaire has promised to create 200,000 private sector jobs and remote spending policy. The 220 billion economy is one of the worst performing since the recession. N a real estate deer were deal, qtr has been bought. It is the largest owner of property owning warehouses. The move will allow it to expand in key u. S. Markets such as california and new jersey. Pakistan and china will find agreement for energy and Infrastructure Projects worth 28 billion for the next two days. The deals will take place during the president s twoday visit to islamabad. You can find more on that story and many more on bloomberg. Com. Join us in the conversation on twitter. Let us know what you think of the show. Tell us the story you want to hear more about. Stocks are trying to pull back on margin leverage. Manus coming up, europe asks greece to show what it can deliver by the middle of may. Unlocking the new aid payments to avoid defaulting. We take a look after the break. Mark greece needs to show area nations what it can deliver by midmay to unlock new aid payments and avoid default. We are now joined by charles. Good morning. April 24 deadline has been skipped, essentially. It is pushed back in may. You wonder if greece will have the money it needs by the middle of may. Touch and go, isnt it . Charles it has been a very hard negotiation. It seems like the new government doesnt want to budge on any of their socalled redline, or any of their election promises. It makes the negotiation very hard with the rest of the eurozone. Caroline what is your base case . Do you think it will go to the wire . Do you think some sort of compromise will be struck . Charles ultimately i think greece will stay in the eurozone, but as time passes the probability is gradually eroding to a case where we could have a greek exitxodus. Before then, the government may have to go down the path of anger, calling new elections are holding a referendum to provide some support or to get the support from the local population. We can no longer abide by our promise through the election so do you give us the mandate to go down that road . Manus we have mario draghi saying that we have enough instruments at this point in time should the worstcase scenario happen that seems to be the consensus, that europe is in a different place. But again, we have commentators saying we are underestimating the real impact. How protected is europe from a shock . Charles we note that the direct impact will be smaller, but it is not clear how spanish bonds italian bonds will start to trade if greece was to go and leave the eurozone. Mark they qe program shielded all these programs. Charles the qe program is not directly linked. It is shielded in a way but there are other tools that the ecb has in place, where they have the possibility to go to a secondary market. They could use those tools to stabilize, but there are limits on how much they could buy. Caroline could this derail the eurozone growth story that we are seeing . Charles it could, especially if you have the proper greek exit. The uncertainty, on confidence unconfidence. Investment plans need to be put aside. That could create some months of weaker growth. Manus draghi also said dont better against the euro. From an economic point of view are all the stars in alignment . Things are getting better. From an economics point of view how do you look at your up . Charles looking at europe, it is not getting worse. You are in a situation where growth is slow but not terribly low, not in a recession you have qe that should provide stimulus. One concern i have is that you still have a lot of leverage on the banking side, which makes it harder for them. Similar to what you had in japan in the 1990s. That is where i would say the biggest red flag is. In general, its an economy that is at least improving. Mark lets move on to matters closer to japan. China is loosening policy once again. Necessary after that week growth figure . Will there be further policy easing in months to come . Charles there will probably be some. We should see some more stimulus out of the Chinese Government coming up. We have a growth story where things are slowing, you have a concern on the Real Estate Market over the weekend the data on house prices was relatively weak, showing declining every city. There is something there that the government sees that they need to take action to prevent any further Downside Risk to growth. Anyway, for the Global Economy the chinese authorities could provide more stimulus and reduce the hard landing. We have seen some of the Commodity Currencies often improving. Caroline this is the 30th centralbank around and about to add stimulus. Are you expecting a bit of an hes up with china, helping the likes of australia . Will that prevent others and to stimulate yet further . Are you expecting another round of stimulus . Charles for now it will have to sway into the system. Some more countries could come in the next few weeks. Caroline can you name any . Charles we can mention the likes of korea. It is mainly in asia that we are seeing some of that weakness but now that china is providing stimulus, it has reduced. Mark thanks for joining us. Manus its nothing like new york but when you go to monaco expect nothing but literally the finest and the most expensive. Tom gibson reports, where he got some Shopping Tips from one of the best. Tom monaco is the ultimate when it comes to luxury car shows. Former boss of london and leading luxury car dealership hr owens has some good tips. A lot of these cars arent great on the road because they dont have power steering. So when you are driving them you need your own troop. They are an enormous success because it fits in with peoples perception of where ferrari used to be in the old days. A car like this came out, we had as many as we could possibly get. This is a specialist Design Company that is taking either a tesla or a nissan and what they are doing is changing them with wheels and suspension a growing market at the moment. People want to show their cars to the guy next door. Tom a floor of boutique brands but even the local dealerships wanted to join the feeding frenzy. The organizers say 70 of last years models sold. We had one particular tom not bad. Rmg racing are also reviving the golden age classics. Aston martin allows them to recreate certain models, but with 21st century engineering. Around 600,000 pounds versus 22 million foreign original. So you would argue that this is a good value. But it is another model that nick has his eye on. This is around 170,000 euros. You can customize as you want. Tom i think i might buy one. I think it looks great, and frankly, it offers something different. It is what i would call a great sunday lunch cars. It will be a very valuable car in the future. Tom top mark might just have something for everyone. Caroline beautiful cars. Can a selfmade millionaire guide the finish economy out of the twoyear recession . The finnish economy out of the recession . Manus monday morning, 6 30. Whats going on in the Foreign Exchange market . The u. N. Is down as china cuts the reserve requirement and goes for another rate cut or the add more stimulus to currency. Could be the unlocking of the change in the chinese currency. The yuan trade is that 2. 6018. The chinese joints 30 other Central Banks in manipulating, changing, easing they are seeing their currency rise by 4 10 of 1 . The aussie dollar is rising. As china cuts rates, it is a critically important market for the australians in terms of their products going to china. Any resurgence in the growth of china is good news for the australians. The Australian Dollar is the most short it has been since february. It is the most short since february, 2014. We will get some inflation data later this week the cpi and the rate cut marks have fallen. We are up 4 10 of 1 have a look at the euro, because we are declining. Last week was the longest winning streak since april last year. Mario draghi warned over the weekend do not get short the euro. As we run up, to the greek discussions, you are being told by politicians, by everybody expect no grand bargain and no great deal. As lagarde said, get down to the tedious work. The euro dollar trades 3 10 of 1 lower. Mark the top stars on bloomberg this hour a meeting in luxembourg today. The growing humanitarian crisis in the Mediterranean Sea after a boat carrying 700 people sunk close to the libyan coast. Originally scheduled for discussion was the civil war in libya and the development in yemen. Jeffrey gundlach the foreign minister who has been 99 of his peers said that policies have yet to be felt in the market, but they will be. He said the probability of a rate hike in june is very low. Asking prices for u. K. Property climbs to a record in april. The average price was up 1. 5 . Values in london rose 2. 5 . Caroline a fishing boat packed with an estimated 700 people seeking refuge in europe capsized north of the libyan coast. They could become the largest such incident in the mediterranean. Delivering the news on sunday morning, 20 bodies have been recovered. The Prime Minister emphasized the importance of recognizing the human tragedy, rather than turning it into a political issue. Our priority which is a political priority, is Human Dignity and National Security to stop the trafficking of