Transcripts For BLOOMBERG Countdown 20150421 : vimarsana.com

Look at what could be next. Mark welcome to countdown. I mark barton. Caroline im caroline hyde. We bring you the interview with the queen of soul, mary j. Blige. Mark telia First Quarter net income 3. 7 one billion swedish kroner in their estimating 3. 3 billion. The company says profitability slowed in the quarter, but it expects its performance to improve over the year. Back in january, they said profit will not grow. It has kept that forecast. Profitability this year will not grow. That is excluding onetime riders. Firstquarter net sales, 26 billion swedish kroner. Analysts were estimating 25. 4 billion. This is a Company Whose business is predominantly focused in sweden finland, with the when you come up let field lithuania latvia and estonia. Also with russian satellites in cause extent kazakhstan and other places. It is planning to merge its data shop with eleanor. The eu has probed into the deal over concerns it could raise prices and thwart innovation. We will speak to the chief executive in about 45 minutes time about todays earnings and the probability of that danish deal going through. Further breaking news. Manus europes caroline europes Biggest Software beating when it comes to total revenue. Sales are 4. 5 billion euros. This is nonifr s. It is not in line for the International Reporting financial standards. With their own comparisons, they are beating analyst estimates. Software revenue was 696 Million Euros and it appears that there support revenue is growing faster than had been estimated. 509 Million Euros. A lot of this is getting a boost from foreign currency. The weakening of the euro this is a company that gets about 48 of its sales. The United States stronger dollar getting some of that. They are getting a stronger currency update. They say they see non ifrs software with 11 percentage points. They have raised their own target because of this tailwind they are getting from foreign currencies earlier this year. It is a company undergoing a big shift, a shift to Cloud Computing subscription which you pay overtime. They used to get upfront license fees that you got to install software on computers, but now Everyone Wants to be able to access their software anywhere, on the mobile, on their tablet. To keep up with salesforce, it is about improving the club. The cloud had been growing in line. Leo only clout amongst these sober raise is we have operating margins down a little bit, 22. 5 . Stay tuned to countdown. We will get a reaction from the chief executive in an exclusive interview. Mark Kaiser Group Holdings has become the First Chinese Property Developer to default on its u. S. Currency debt. With more on the story, we have zed. This exposes International Investors to losses. In the First Chinese developer to default on its u. S. Currency debt. It has had a Significant Impact on its stock. It had been suspended for the bulk of april. It is down 40 over the last month. This exposes International Creditors to potential losses as china grapples with a slumping market. Kaise was extremely kaisa was extreme popular with Foreign Investors. They piled cash into the market while it was hot and Companies Like kaisa defaulting on 52 million, that is Interest Payments on bonds, and after a 30day grace. It could not do with the money. This could have a Ripple Effect throughout the economy and we are tracking other Chinese Developers today. We have not seen a huge move but the notes of those developers we were also watching, they remain largely unchanged. We will watch what this means for the property market. We know it is entrenching and it has been a key way for chinese investors to find yield in recent years. Now it is a different dynamic. Analysts say we may see more of these defaults in the months ahead. Mark how are the rotter asian markets looking today . How are the broader asian markets looking today . Zeb hong kong is the place where the action is happening. We are seeing a nice rally on the hang seng index. 2 . A more modest gain in shanghai about 1 . Across the region stocks are generally rising. We have all 10 groups advancing today. Tech has been an active name. China mobile, the biggest mobilephone operator in the world, doing very well up almost 7 . Check out china resources. This stock has stunningly performance. Aia is down under 1 in the session will follow that. Across the region in southeast asia, generally green across the screen. Oil holding your the highest level this month. We have the dollar strengthening. In japan today, it is exporters leading the way. The nikkei is up by 2. 5 . They are back from their lunch break. Tokyo advancing as well. Some of the commodity and auto producers seeing declines. That is a snapshot of the market as they stand in asia. Mark thanks a lot. Caroline teva is offering mylan is early as today. They have a market by you of over 33 billion and it could be the pharmas largest takeover attempt early years. Run us through what this could look like. The tire between mylan and cap up teva has been here for a while. The combination would create a bigger beast. What we might see is if the deal being tabled was the mylans over fourfor it happens to be listed in israel. That was seen as a defensive move by mylan to defend off offers from teva. Mylans worth could be the biggest you of the year if it goes through, t ifeva makes it. They could make that offer as early as today. We will wait and see what they have to say about it. We have no comment from teva or barclays, which would be advising teva on this deal. Mylan is yet to get back to us. Caroline give us a feeling of what mylan seems to have projected the deal even before was tabled. They have tried to preserve it to an extent. Elliott a bit of an unusual step. There is speculation that such a deal might come about. What mylan said on friday after bloomberg reported that teva was considering making a bid, the chairman came out with a statement and said we have studied a potential combination of mylan and teva for some time and we believe that a combination will be without sound industrial logic. Of course, overlap means you can strip out the cost from those potentially. Teva also on the lookout for trying to outfit drop off for its bestselling drug in which is a multiple sclerosis treatment. The first competitor to that drug was approved by the u. S. Last week as well. There were some justifications. The market seemed to like the idea of a tire between the two, sending them both up to record highs. It is all adding up here in pharmaceuticals. Back to you. Caroline thank you very much indeed. Mark the top stories this hour. Credit suisse reported estimates in line with earnings. Earnings in line with estimates freedom we will have an interview with chief executive brady dougan. Gas prom will get a complaint from the eu. The probe was delayed amid political tensions in ukraine. They are checking to see if it prevents customers from reselling it. The eu president has called a summit on april 23 to address the growing demand carrying crisis in the mediterranean after a boat capsized. Missed estimates hampered by poor weather in australia. They have continued to expand despite a sharp drop in prices. The news has not negatively affected rios share price. You can find more on that story at bloomberg. Com. Caroline take cash call a cash call in greece. The Prime Minister orders people to moves like this are totally unprecedented. Who else has taken similar measures and how much does greece hope to find in the coffers by doing this . Hans good morning, caroline. 2 billion euros is what they hope to find according to people familiar with the matter. Argentina did this for 24 billion by taking over pension reserves in 2008 and 2010. In 2012, they took over some of their form reserves. It is an indication of how cashstrapped the greek government is. We look at some of the payments they had 80 million do yesterday. Now we have a big summit later on in the month and in may they have deadlines. They have 200 million around june. That is to the imf. They have a later payment that is due in midmay, may the 11th. May 12, excuse me. That is the 700 million payment that everyone is talking about. You take a macro view of this, earlier bloomberg spoke with the former ecb president and he said no one is optimistic on greece. If there was a program that would inspire confidence, all those dramatic problems would look secondary. They look first because there is no confidence, there is no program. The key for everything is to have a credible program that would be considered credible by the Friendly International community. Hans greeces threeyear yield jumped 180 basis points. That is 2. 3 . Price is in the risk of the fall. 67 is the beginning of march all the way up to 81 . It has been a remarkable story. We dont know what we will get from the summit, but it is of concern and there will be more concerns once everyone digests this news about forcing cities to move their funds into the countrys central bank. Caroline the question is how much higher the three year yield can go. In excess of 28 . Will they comply . With a municipalities say yes . Hans the Athens City Council will be debating this later today. Here is what the opposition said. They seized upon this and said the deadlock that has been brought upon the government cant be paid for by using the wealth of the greek taxpayer through an internal default. That is what you are hearing inside of greece. This is an internal default and it could cause the next journal the fall. Theres a lot of commentary out there. An external default. External default could mean exit. We will be looking closely to the finance ministers out of germany about contingency plans. Caroline hans nichols live in berlin. Mark you key Election Campaign heads the u. K. Election campaign heads towards its conclusion and things look up for ed miliband. The leader is the most likely candidate become the next Prime Minister. Heres and edwards. This is significant here is anna edwards. Anna this is the third we have seen in recent weeks. We have seen better and that puts them at recent weeks is over a labor minority government is more likely to be the election. These bookies are new to u. K. Politics. They have not been doing it that long but they correctly predicted a couple of weeks out that it was going to be a no vote on the scottish referendum. Many take it more seriously than the polls. Was the polling data telling us . Caroline the polls are not helping much. We are still this area were we cant tell who will be ahead. Unbelievably tight is the wording that Stephan Shakespeare used this morning. He was on asia edge with rishaad salamat. He said polls were unbelievably tight. Is talking about forecasters shooting their view towards the ed miliband Prime Minister should because polls are tight and the labour party, whether they want it or not, can count on more support from other parties, most notably the snp and that might make it easier for them to command the confidence of the house and former government that it would be for the rival conservatives. What are we going to hear on the campaign trail . John major will be out trying to attack labour using the line around the smp. He is going to be warning that the Labour Government will be held to ransom by the snp. He is good on a soapbox. Mark he was at his best on a soapbox. The economy, there were those yesterday were fairly confident amongst the uncertainty. Anna similar things to what Morgan Stanley said. Dont overdo the gloom. It may have a modest rag on the modest drag on the economy. Caroline coming next on countdown jason furman. Mark Prime Minister tsipras is asking for payments to be going to the country central bank. Lets get more with the chief cyber currency strategist at bny mellon. David powell. A cash grab from tsipras as it is seen by local governments. Does this tell us the precarious financial position that greece finds itself in . That is exactly what it tells us and that we are getting no closer to the reforms that need to be made. We still have concerns about what will happen once we get to june. I think its safe to say we are within shouting distance of at least a possible default and even possibly a from the eurozone. Caroline give us a sense of what the catalyst might be for the exit that some are saying we might be close to. David the endgame for greece would be if the ecb decided to cut greek banks off of liquidity from the central bank. That is what that event would be the event that kicks reset the eurozone. Mark how could a graccident, as they are calling it, that they could stumble their way to an exit from the euro. That is worrying from an external position. A could both sides allow a country to stumble its way out of the eurozone . Simon i question the idea of the accident because from the getgo go there has been a clear design, which is that greece will do with the reforms required of it or they will not get the money. It is clear and deliver. If you have made a decision that they have to stick the reforms, you also have to accept that there will be something that can happen if they do not stick with the reforms. I question the idea if it is an accident. Everybody knows where we are going with this. Everyone knows what the stakes are. Is it something that hasnt been prospected . No. If you go back over the last three years, there is plenty of evidence that option b has been considered. As we have got into this everyone went into this with a fairly clear idea of what could potentially happen. Caroline a cleareye view of what could happen. It hasnt remains that kind of view of which state matters. Every date seems to shift. April 24 means to be key. Now that seems to have shifted out. Which date should the market be looking at . David there are a slew of dates out there. The key date is probably july 20. That is the date that the bond that the ecb holds matures and if greece is unable to roll over that bond and default on Government Debt it is probably at that stage at the ecb can say we will no longer be able to declare the banks solvent. The other dates are a little bit less worrying. Mark is the euro moving at all in response to events in greece or is it purely fed expectations, u. S. Data, qe . Is greece part of the puzzle . Simon it is, but in a curious way. If you look at the way it has performed over the course of this year and you look at that period from the point where the greek government comes in on gender were 23rd, does thereabouts all the way until the initial Letter Agreement was signed in late february, the euro want sideways. There is actually some kind of side that the thing that drives the euro lower is when there is less consensus about greece and people focus on the Monetary Policy start. When greece gets low, people become riskaverse and do nothing at all. Weirdly tends to stabilize. Were that to continue, whether to be an actual greek exit, i do not believe that at all. I believe that investors would ask the question who is next . If there were to be a greek exit, the ecb may feel the need to do more in terms of Monetary Policy to provide additional buffers. Both of those could drive the euro lower. At the moment very oddly when Greek Tensions are rising, we see the euro stabilize. Caroline you do say there are a few other telltale signs. What signs of risk aversion are starting to build . Simon i think that is absolutely right. If you go through january infantry, clearly it is totally focused on quantitative easing. You saw that in the performance of seven european bonds where the yields continue to fall relative to germany. Over the course of the last month while we have seen Northern Europe bonds to be into and lower. Italy, spain, and portuguese yields have started to spike higher. If you look at the performance and the spread against germany very similar to what we saw in the opening months of the crisis back in 2010. That might be the real Early Warning sign. Caroline thank you very much. David powell, thank you very much. Mark we will have another interview would you do not want to miss. We will speak to president obamaseconomist. Mark it is time to sell the yen, so says japans holdings. It says the surprise rally in the yen is another reason to sell. This is dollaryen today. The dollar is down about by. 25 . They said the euro is one of two gnp gauges against the yen. It sees the currency tumbling to its weakest since 2002 before the year is out and the fed raises rates and the japan government Pension Funds leads an avalanche of funds flowing to foreign assets. They see it flipping by 3 to ¥125 to dollar by the end of the year, in line with our median estimates in a bloomberg survey. The dollaryen level is 119. 49. The july 2007 low was reached on march 10 when dollaryen was one to 2. 03 122. 03. At the start of the year, the strategists were saying that the dollar should be 2 up against the yen. Chairman furman i would have been in that simon i would have been in that group as well. Mark what went wrong . Simon no more than the fact that we underestimated how many of the currencies that would come along an act is currently for the currency trade. The swiss franc, the danish krone, the euro came along. In that circumstance the yen did not have quite the same interest. That said, i still think that the yen has got further troubles ahead. I think you had your member with dollaryen you have to remember with dollaryen, it figures in a matter of 68 weeks. I suspect that i would actually probably be a little more aggressive on the downside and think we could see First Quarter<\/a> net income 3. 7 one billion swedish kroner in their estimating 3. 3 billion. The company says profitability slowed in the quarter, but it expects its performance to improve over the year. Back in january, they said profit will not grow. It has kept that forecast. Profitability this year will not grow. That is excluding onetime riders. Firstquarter net sales, 26 billion swedish kroner. Analysts were estimating 25. 4 billion. This is a Company Whose<\/a> business is predominantly focused in sweden finland, with the when you come up let field lithuania latvia and estonia. Also with russian satellites in cause extent kazakhstan and other places. It is planning to merge its data shop with eleanor. The eu has probed into the deal over concerns it could raise prices and thwart innovation. We will speak to the chief executive in about 45 minutes time about todays earnings and the probability of that danish deal going through. Further breaking news. Manus europes caroline europes Biggest Software<\/a> beating when it comes to total revenue. Sales are 4. 5 billion euros. This is nonifr s. It is not in line for the International Reporting<\/a> financial standards. With their own comparisons, they are beating analyst estimates. Software revenue was 696 Million Euros<\/a> and it appears that there support revenue is growing faster than had been estimated. 509 Million Euros<\/a>. A lot of this is getting a boost from foreign currency. The weakening of the euro this is a company that gets about 48 of its sales. The United States<\/a> stronger dollar getting some of that. They are getting a stronger currency update. They say they see non ifrs software with 11 percentage points. They have raised their own target because of this tailwind they are getting from foreign currencies earlier this year. It is a company undergoing a big shift, a shift to Cloud Computing<\/a> subscription which you pay overtime. They used to get upfront license fees that you got to install software on computers, but now Everyone Wants<\/a> to be able to access their software anywhere, on the mobile, on their tablet. To keep up with salesforce, it is about improving the club. The cloud had been growing in line. Leo only clout amongst these sober raise is we have operating margins down a little bit, 22. 5 . Stay tuned to countdown. We will get a reaction from the chief executive in an exclusive interview. Mark Kaiser Group Holdings<\/a> has become the First Chinese<\/a> Property Developer<\/a> to default on its u. S. Currency debt. With more on the story, we have zed. This exposes International Investors<\/a> to losses. In the First Chinese<\/a> developer to default on its u. S. Currency debt. It has had a Significant Impact<\/a> on its stock. It had been suspended for the bulk of april. It is down 40 over the last month. This exposes International Creditors<\/a> to potential losses as china grapples with a slumping market. Kaise was extremely kaisa was extreme popular with Foreign Investors<\/a>. They piled cash into the market while it was hot and Companies Like<\/a> kaisa defaulting on 52 million, that is Interest Payments<\/a> on bonds, and after a 30day grace. It could not do with the money. This could have a Ripple Effect<\/a> throughout the economy and we are tracking other Chinese Developers<\/a> today. We have not seen a huge move but the notes of those developers we were also watching, they remain largely unchanged. We will watch what this means for the property market. We know it is entrenching and it has been a key way for chinese investors to find yield in recent years. Now it is a different dynamic. Analysts say we may see more of these defaults in the months ahead. Mark how are the rotter asian markets looking today . How are the broader asian markets looking today . Zeb hong kong is the place where the action is happening. We are seeing a nice rally on the hang seng index. 2 . A more modest gain in shanghai about 1 . Across the region stocks are generally rising. We have all 10 groups advancing today. Tech has been an active name. China mobile, the biggest mobilephone operator in the world, doing very well up almost 7 . Check out china resources. This stock has stunningly performance. Aia is down under 1 in the session will follow that. Across the region in southeast asia, generally green across the screen. Oil holding your the highest level this month. We have the dollar strengthening. In japan today, it is exporters leading the way. The nikkei is up by 2. 5 . They are back from their lunch break. Tokyo advancing as well. Some of the commodity and auto producers seeing declines. That is a snapshot of the market as they stand in asia. Mark thanks a lot. Caroline teva is offering mylan is early as today. They have a market by you of over 33 billion and it could be the pharmas largest takeover attempt early years. Run us through what this could look like. The tire between mylan and cap up teva has been here for a while. The combination would create a bigger beast. What we might see is if the deal being tabled was the mylans over fourfor it happens to be listed in israel. That was seen as a defensive move by mylan to defend off offers from teva. Mylans worth could be the biggest you of the year if it goes through, t ifeva makes it. They could make that offer as early as today. We will wait and see what they have to say about it. We have no comment from teva or barclays, which would be advising teva on this deal. Mylan is yet to get back to us. Caroline give us a feeling of what mylan seems to have projected the deal even before was tabled. They have tried to preserve it to an extent. Elliott a bit of an unusual step. There is speculation that such a deal might come about. What mylan said on friday after bloomberg reported that teva was considering making a bid, the chairman came out with a statement and said we have studied a potential combination of mylan and teva for some time and we believe that a combination will be without sound industrial logic. Of course, overlap means you can strip out the cost from those potentially. Teva also on the lookout for trying to outfit drop off for its bestselling drug in which is a multiple sclerosis treatment. The first competitor to that drug was approved by the u. S. Last week as well. There were some justifications. The market seemed to like the idea of a tire between the two, sending them both up to record highs. It is all adding up here in pharmaceuticals. Back to you. Caroline thank you very much indeed. Mark the top stories this hour. Credit suisse reported estimates in line with earnings. Earnings in line with estimates freedom we will have an interview with chief executive brady dougan. Gas prom will get a complaint from the eu. The probe was delayed amid political tensions in ukraine. They are checking to see if it prevents customers from reselling it. The eu president has called a summit on april 23 to address the growing demand carrying crisis in the mediterranean after a boat capsized. Missed estimates hampered by poor weather in australia. They have continued to expand despite a sharp drop in prices. The news has not negatively affected rios share price. You can find more on that story at bloomberg. Com. Caroline take cash call a cash call in greece. The Prime Minister<\/a> orders people to moves like this are totally unprecedented. Who else has taken similar measures and how much does greece hope to find in the coffers by doing this . Hans good morning, caroline. 2 billion euros is what they hope to find according to people familiar with the matter. Argentina did this for 24 billion by taking over pension reserves in 2008 and 2010. In 2012, they took over some of their form reserves. It is an indication of how cashstrapped the greek government is. We look at some of the payments they had 80 million do yesterday. Now we have a big summit later on in the month and in may they have deadlines. They have 200 million around june. That is to the imf. They have a later payment that is due in midmay, may the 11th. May 12, excuse me. That is the 700 million payment that everyone is talking about. You take a macro view of this, earlier bloomberg spoke with the former ecb president and he said no one is optimistic on greece. If there was a program that would inspire confidence, all those dramatic problems would look secondary. They look first because there is no confidence, there is no program. The key for everything is to have a credible program that would be considered credible by the Friendly International<\/a> community. Hans greeces threeyear yield jumped 180 basis points. That is 2. 3 . Price is in the risk of the fall. 67 is the beginning of march all the way up to 81 . It has been a remarkable story. We dont know what we will get from the summit, but it is of concern and there will be more concerns once everyone digests this news about forcing cities to move their funds into the countrys central bank. Caroline the question is how much higher the three year yield can go. In excess of 28 . Will they comply . With a municipalities say yes . Hans the Athens City Council<\/a> will be debating this later today. Here is what the opposition said. They seized upon this and said the deadlock that has been brought upon the government cant be paid for by using the wealth of the greek taxpayer through an internal default. That is what you are hearing inside of greece. This is an internal default and it could cause the next journal the fall. Theres a lot of commentary out there. An external default. External default could mean exit. We will be looking closely to the finance ministers out of germany about contingency plans. Caroline hans nichols live in berlin. Mark you key Election Campaign<\/a> heads the u. K. Election campaign heads towards its conclusion and things look up for ed miliband. The leader is the most likely candidate become the next Prime Minister<\/a>. Heres and edwards. This is significant here is anna edwards. Anna this is the third we have seen in recent weeks. We have seen better and that puts them at recent weeks is over a labor minority government is more likely to be the election. These bookies are new to u. K. Politics. They have not been doing it that long but they correctly predicted a couple of weeks out that it was going to be a no vote on the scottish referendum. Many take it more seriously than the polls. Was the polling data telling us . Caroline the polls are not helping much. We are still this area were we cant tell who will be ahead. Unbelievably tight is the wording that Stephan Shakespeare<\/a> used this morning. He was on asia edge with rishaad salamat. He said polls were unbelievably tight. Is talking about forecasters shooting their view towards the ed miliband Prime Minister<\/a> should because polls are tight and the labour party, whether they want it or not, can count on more support from other parties, most notably the snp and that might make it easier for them to command the confidence of the house and former government that it would be for the rival conservatives. What are we going to hear on the campaign trail . John major will be out trying to attack labour using the line around the smp. He is going to be warning that the Labour Government<\/a> will be held to ransom by the snp. He is good on a soapbox. Mark he was at his best on a soapbox. The economy, there were those yesterday were fairly confident amongst the uncertainty. Anna similar things to what Morgan Stanley<\/a> said. Dont overdo the gloom. It may have a modest rag on the modest drag on the economy. Caroline coming next on countdown jason furman. Mark Prime Minister<\/a> tsipras is asking for payments to be going to the country central bank. Lets get more with the chief cyber currency strategist at bny mellon. David powell. A cash grab from tsipras as it is seen by local governments. Does this tell us the precarious financial position that greece finds itself in . That is exactly what it tells us and that we are getting no closer to the reforms that need to be made. We still have concerns about what will happen once we get to june. I think its safe to say we are within shouting distance of at least a possible default and even possibly a from the eurozone. Caroline give us a sense of what the catalyst might be for the exit that some are saying we might be close to. David the endgame for greece would be if the ecb decided to cut greek banks off of liquidity from the central bank. That is what that event would be the event that kicks reset the eurozone. Mark how could a graccident, as they are calling it, that they could stumble their way to an exit from the euro. That is worrying from an external position. A could both sides allow a country to stumble its way out of the eurozone . Simon i question the idea of the accident because from the getgo go there has been a clear design, which is that greece will do with the reforms required of it or they will not get the money. It is clear and deliver. If you have made a decision that they have to stick the reforms, you also have to accept that there will be something that can happen if they do not stick with the reforms. I question the idea if it is an accident. Everybody knows where we are going with this. Everyone knows what the stakes are. Is it something that hasnt been prospected . No. If you go back over the last three years, there is plenty of evidence that option b has been considered. As we have got into this everyone went into this with a fairly clear idea of what could potentially happen. Caroline a cleareye view of what could happen. It hasnt remains that kind of view of which state matters. Every date seems to shift. April 24 means to be key. Now that seems to have shifted out. Which date should the market be looking at . David there are a slew of dates out there. The key date is probably july 20. That is the date that the bond that the ecb holds matures and if greece is unable to roll over that bond and default on Government Debt<\/a> it is probably at that stage at the ecb can say we will no longer be able to declare the banks solvent. The other dates are a little bit less worrying. Mark is the euro moving at all in response to events in greece or is it purely fed expectations, u. S. Data, qe . Is greece part of the puzzle . Simon it is, but in a curious way. If you look at the way it has performed over the course of this year and you look at that period from the point where the greek government comes in on gender were 23rd, does thereabouts all the way until the initial Letter Agreement<\/a> was signed in late february, the euro want sideways. There is actually some kind of side that the thing that drives the euro lower is when there is less consensus about greece and people focus on the Monetary Policy<\/a> start. When greece gets low, people become riskaverse and do nothing at all. Weirdly tends to stabilize. Were that to continue, whether to be an actual greek exit, i do not believe that at all. I believe that investors would ask the question who is next . If there were to be a greek exit, the ecb may feel the need to do more in terms of Monetary Policy<\/a> to provide additional buffers. Both of those could drive the euro lower. At the moment very oddly when Greek Tensions<\/a> are rising, we see the euro stabilize. Caroline you do say there are a few other telltale signs. What signs of risk aversion are starting to build . Simon i think that is absolutely right. If you go through january infantry, clearly it is totally focused on quantitative easing. You saw that in the performance of seven european bonds where the yields continue to fall relative to germany. Over the course of the last month while we have seen Northern Europe<\/a> bonds to be into and lower. Italy, spain, and portuguese yields have started to spike higher. If you look at the performance and the spread against germany very similar to what we saw in the opening months of the crisis back in 2010. That might be the real Early Warning<\/a> sign. Caroline thank you very much. David powell, thank you very much. Mark we will have another interview would you do not want to miss. We will speak to president obamaseconomist. Mark it is time to sell the yen, so says japans holdings. It says the surprise rally in the yen is another reason to sell. This is dollaryen today. The dollar is down about by. 25 . They said the euro is one of two gnp gauges against the yen. It sees the currency tumbling to its weakest since 2002 before the year is out and the fed raises rates and the japan government Pension Funds<\/a> leads an avalanche of funds flowing to foreign assets. They see it flipping by 3 to \u00a5125 to dollar by the end of the year, in line with our median estimates in a bloomberg survey. The dollaryen level is 119. 49. The july 2007 low was reached on march 10 when dollaryen was one to 2. 03 122. 03. At the start of the year, the strategists were saying that the dollar should be 2 up against the yen. Chairman furman i would have been in that simon i would have been in that group as well. Mark what went wrong . Simon no more than the fact that we underestimated how many of the currencies that would come along an act is currently for the currency trade. The swiss franc, the danish krone, the euro came along. In that circumstance the yen did not have quite the same interest. That said, i still think that the yen has got further troubles ahead. I think you had your member with dollaryen you have to remember with dollaryen, it figures in a matter of 68 weeks. I suspect that i would actually probably be a little more aggressive on the downside and think we could see Something Like<\/a> 130 by the india. My argument is simple. By the end of the agreement my argument is simple. There is no inflation in japan. We have no one trying to defeat this issue. As a result i think the boj has to do something at some point. If that is the case, you will see fuhr the further qe. Maybe something on the deposit rates, although that is unlikely. We will see one of the sharp moves taking place. Caroline on the flipside, the dollar, we have had bill coming out thinking Interest Rate<\/a> could rise by the end of your. He is optimistic. Is this it is the difference in Central Bank Policies<\/a> that throw the spotlight on. Are you more bullish on the dollar . Simon i am bullish on the dollar by default. I think the thing we have to remember is deflation, disinflation pressures are building. You have to look at the last couple of years to see that. I think we going to go into a sustained growth of rate hikes in the u. S. Is unlikely. They have spent so much time telling us that they are going to make this bond policy normalization with that they have talked themselves into it. They have to make one move before year end. I think, given what everything is doing that is dollar bullish. Mark thank you for being around today. Simon derrick, chief currency strategist at bny mellon. Caroline lets joins hans nichols in berlin because we will talk more about the u. S. He is joined by the u. S. Council of economic advisers chairman and president obamas top economist, jason furman. Hans im joined by jason furman, the top economist. Thank you very much for joining us on bloomberg television. You are the man who brings the president the job numbers on thursday night. The thursday night before everyone gets to see them. This month they were a little bit down. Is that part of the trend . Chairman furman i dont think so. The trend we have seen is a really good friend. 3 million jobs really good trend. 3 million jobs in the last year, the Unemployment Rate<\/a> falling sharply ahead of expectations. There is no reason why we cannot continue to have that economic performance. Hans the other trend that is concerning is the deficit for the first half of six months in the states, which rose more than the previous six months. Is that slower revenue coming in . Chairman furman there were some special factors in that, but i would step back and look. We went from deficit 9. 8 of gdp to 2. 8 gdp. We think we are close to being able to do that. Hans theres a lot of talk about greece with their primary surplus. It looks like they will be coming at about 3. 5 this year. When you take out Interest Payments<\/a>, what is the United States<\/a> primary interest . Chairman furman i believe the u. S. Is running a small surplus, but what we keep our eyes on is the debt falling as a share of gdp. In order to do that, you need a deficit about 3 of gdp which is the target we set out in 2008. The target we have had, and we need more deficit reduction to make sure we stay in that zone. Hans can greece expect to grow again if it is running such a high primary debt surplus . Chairman furman greek growth is an essential ingredient for them to be up to repay their debt. I think greek growth is not test in greeces interest, it is an interest of the entire world. That is why doing the Technical Work<\/a> that greece needs to do that the Institution Needs<\/a> to do to figure out the structural reforms, the path for growth, is something we should all want. Hans in washington, a lot of concern about Global Growth<\/a> in general. A little bit about greece. To what extent could concerns about greece slow down the Global Economy<\/a> . Chairman furman i dont think it is an extent we want to run. I dont think we want to know the answer to that question. If the institutions do not find a path forward, it would not just be terrible for greece, it would be the risk he Global Economy<\/a> should not want to take just as things are starting to work. We are getting out of that crisis. We dont want to see what would happen. Hans as some damage already been done . We had a tremendous amount of outflow from greek banks. Greece could slip back into recession for the quarter. What is your take . Chairman furman no question that greece is struggling. That is part of the problem. You need economic strength in order to make those repayments. That is why coming together and figuring out how to strengthen the economy is really in everyones interest. People need to get down to work. There is a lot of work to be done and not a lot of time. They are further behind than they should be. Hans we are off to the euro finance meeting april 24. In midmay, it seems like that at the new deadline that is in effect. What is the firm and fast deadline from the u. S. Administrations perspective . Chairman furman what the u. S. Is encouraging is greece and the institutions to be at the table, to roll up the sleeves. There is a lot of Technical Work<\/a> that needs to be done. It would have been better off to be have done well before this. There is still time and they need to work together. Hans what level is it being discussed in the white house . Chairman furman it is something that the president is personally paying attention to. It is something that he discussed with Prime Minister<\/a> renzi when he was in washington last week. He discussed it with other leaders. The president can focus on a lot of issues at once, so he is also very focused on what we can do for the american economy, how we can expand our exports, invest more in infrastructure, reform our business tax code, deal with our budget and our needs. Hans lets talk about growth. You are meeting and talking about trade. What needs to happen to get the european trade deal we are not even close to the finish line, but more in a position where we could see it being completed . Chairman furman qtip ttip would bring together nearly half of the worlds economy. It is important because of the volume of trades 1 trillion. If you could make improvement on a 1 trillion base, it could make a difference for the european economy and the difference for the u. S. Economy. We have seen really encouraging works from the leaders in europe. We need to see that matched with concrete step forward at the table. Hans that is not them going back to parliament and preparing a vote. That means making negotiating concessions when they are at the table. Chairman furman we need to see more movement at the table. United states stands ready to move as quickly as the europeans want to move. We need to see some of that movement because this is important for this. Hans when you talk about the coaching and at the eu level or the National Level<\/a> . Chairman furman at the eu level. Hans mr. Mike froman, ustr rep he will be here later this summer. What does he need to see . Chairman furman i will let him negotiate. I will not negotiate with you right here. Hans we can talk about it here. Chairman furman there is a lot of potential here. There are a lot of places where there are impediments to trade. Also just a lot of duplication red tape impediments to growth. There is also an opportunity. The United States<\/a> and europe share high standards, the same values. We can set up a template that will create an example for the world. Hans i saw you checking your phone. There is a lot of concern in europe about Angela Merkels<\/a> smartphone being cap. Do you use your phone here the same way you use it in the states . Chairman furman absolutely . Hans and you are convinced your communication is secure . Chairman furman absolutely. I use my work email for work and i email my wife am a private email account. Hans we do thank you for your time. Jason furman. I will send it back to london and we will be back deconstructing this interview and especially the firm timeline and the pressure that i think mr. Furman maybe a little bit put on greece. Guys . Caroline hans nichols in berlin. Great interview, joined by jason furman. Mark join the conversation on twitter. Tell us what youre following today. Tell us the stories you want to hear more about. There we are. The third leg of the stool manus cranny, is chatting with the chief executive of Credit Suisse<\/a> brady dougan. Well will have that interview at the top of the hour. Caroline we had earnings from Swedish Network<\/a> provider earlier in the hour. The chief executive in his First International<\/a> tv interview of the day. Stay tuned for that. So much consolidation in the telecom industry. Caroline a weaker euro helped to compensate for sluggish growth in western europe. Hsbc has indicated might move headquarters from london once the Regulatory Environment<\/a> becomes clear. Likely after a general election on may 7. Speaking for shareholders, Bank Chairman<\/a> Neville Flynn<\/a> said moving from the u. K. Capital was a possibility. The main Political Parties<\/a> have vowed to create tougher tax regimes for banks. Queen elizabeth ii turns 89 today. The duchess of cambridge is due to give birth anytime. Today brings an extra special delivery. An ibm shift into Cloud Computing<\/a> has paid off this quarter. The bluechip tech company Beat Estimates<\/a> helped in part by sales of its mainframe and Cloud Computing<\/a> businesses. Estimates had been significantly lower in response to the chief executive warning last year that ibm would fall short of a longheld goal. Mark earnings from the swedish telecoms provider telia this morning. Joining us is the chief executive gil johan dennelind. Mr. Dennelind good morning. Mark a narrow miss on your core metric, adjusted earnings. Are there any signs that competition is easing in your core nordic and baltic markets . Mr. Dennelind no, not really. I wouldnt say it is easing. In sweden it is fierce but we are holding up well. There is a very strong data demand in the swedish market especially on the cyber side. I think we cant meet the demand. We are rolling out five households per hour and it is an on the building up and digitalized here. Mark is there any sorry, do carry on. Mr. Dennelind i was just moving on over to norway where we completed the acquisition of teltu and we moved one million new customers over to our new 4g network. We have seen the numbers and are very happy about that. The danish market is fierce competition. We are expecting and hoping for a clearance for the merger with Eleanor Telenor<\/a> creating a strong Second Player<\/a> in the danish market. Mark you think you will get that clearance . The eu is open to probe into the deal over concerns it could raise pricing and thwart innovation. Are you still confident . Mr. Dennelind im as confident as i was in the beginning of this deal, but also humble to the fact that we need to go through this process properly and argue the case, which i think is very strong. The danish market needs longterm investments and we are prepared to do that and stepping up those investments together with telenor. Prices honestly, have not been the major issue in markets. It has been quality of service and longterm investments that have been the issue. Hopefully we can provide those arguments in a good way together with telenor. Mark does that mean it wont lead to higher prices, it wont lead to fewer innovative offers, and it wont lead to less quality of service for consumers, which seems to be the concern . Mr. Dennelind well, the concern i have in many markets is that we have not invested enough as an industry in bringing quality of service and security into the future. That is crucial for us. That is top of my agenda. Prices need to be competitive and to be meeting consumer demand which it has proven over the last 20 years in our industry to deliver on that. Hopefully the formula can work. Mark is sweden next . You have taken care of norway. You have hopefully taken care of denmark. Does the spotlight turned to sweden now . Is sweden itself in need of further competition, further consolidation as competition heats up . Mr. Dennelind we will see. Even if it is a very fierce competition, it seems to be a a somewhat more balanced market. You never know. I think there is convergence happening in many of our markets and that can happen in all markets. We will be watching that closely even if we cant be active on the consolation in sweden, obviously. Caroline when you mark when you look at the headlines and you see on the daily, if not weekly, basis as a new big telecom still taking place, such as telenet buying royal kpn yesterday for 1. 3 3 billion, there are 97 billion worth of deals in the last 12 months. When you see all these deals taking place, do you figure to yourself, where is the endgame . Not only for the industry, but for telia itself . What are your thoughts on that . Mr. Dennelind good observation. It shows the need for consolidation in many european markets. In the u. S. 300 Million People<\/a> on four operators. In europe, we are 500 Million People<\/a> on 400 operators. There is a need for scale game and that is ongoing. We have the trend of convergence were mobile is coming together much faster, much stronger, and those two drivers are really forcing this combination. I think it is a healthy signed as long as we can deliver on the customers expectations. I think we have proven to do that in many of our markets as well. Endgame will be in our existing markets. I think we will be waiting and watching a bit on the new markets until we have a position that is clear. It is a very interesting dynamic indeed. Mark thanks for your time today, sir. We will speak to you again soon. Johann dental and joihhan dennelind, ceo of mark ceo teliasoneria of teliasoneria. Caroline sports and music tickets you can buy on twitter. We went over there and created a song called follow and that was the first song we were going to do for the ep. When i brought the song back over to capitol records, i played follow and the chairman went crazy and said we have to make this a big idea. Lets have you go back to london to finish the album, the lets have you write with sam smith and just make it a bigger idea. Mark queen of hiphop and sold mary j. Blige there. The nighttime grammy award winner telling us about her time recording in london. You are fan camara to . Caroline i am a fan. I saw her about a decade ago. She was amazing live, but chaka khan in support. Mark she was big when i was young. Caroline she was hilarious. I have an interesting piece on bloomberg. Com about how twitter is where you can buy your tickets for music in the sports margaret a year and a half since twitter combined with ticketmaster and they are using the overall social networking button, the twitter button to be able to start buying things. It really has not become the social enterprise in ecommerce yet. Now we are starting to see that. Maybe you can start buying mary j. Blige tickets. Mark countdown continues in the next hour. Brady dougan in his last quarter as chief executive. Stay tuned. Up substantially on the quarter a year ago and it has been performing well. We will look at efficiency there and make sure we are running it as efficiently as possible. Mark credits with Credit Suisse<\/a> chief brady dougan there. We will bring you that. Caroline the worlds a biggest generic drug maker teva could make a bid for mylan in what would be the biggest pharma takeover attempt this year. Mark combating tsiprass cash great. We bring you the latest with greece on the brink. Caroline sky will bring you the numbers after they raise prices and added a Record Number<\/a> of subscribers last quarter. Mark welcome to countdown. Im mark barton. Caroline im caroline hyde. We are waiting on breaking news. We are getting across the terminals now with skye coming out with the results. 242,000 new customer additions in the Third Quarter<\/a>. Just managing to keep increasing. They added some 493,000 in their second quarter. It is a slow down from the previous quarter, but we are looking out to sea how they are improving, whether there will be any buildup in the United Kingdom<\/a> and ireland. We sought at a decade low last year, but the revenue for the first ninemonth last nine months has risen. His Rupert Murdochs<\/a> Broadcasting Company<\/a> for all intensive purposes. They have five European Companies<\/a> because they bought sky italian, guy deutsch land sky deutschland. We have in the Third Quarter<\/a> 242,000 new customer additions, almost 70 more than the previous time last year, over one mile in over one million new paid subscriptions. and austria. Germany is doing particularly well and revenue is up 5 , 28 increase in operating profit. They are ramping up prices because they spent so much on football rights for the premier leagues. They had to offset those. Mark we will talk about armor holdings. They reported earnings that just barely Beat Estimates<\/a>. Manus cranny has sat down with brady dougan after the Bank Reported<\/a> his last earnings with him as the helm at the helm. Heres what he had to say. Mr. Dougan i think there are continue to be headwinds with a low Interest Rate<\/a> environment. I think the measures we took in the First Quarter<\/a> to counter the changes in switzerland, where we had a reduction into negative territory. The change had been effective. We continue to gather new assets. The margin in the basis at 30 cap points was quite good. The business is moving in the right direction. We have taken a lot of measures to make sure we are improving the performance of the business and we have seen the results of that. Manus looking at the Investment Bank<\/a> site, equity is doing nicely. Your costs are ticking up. Is there still a case for cost to be taken out there . Mr. Dougan we obviously have a continuing program. We have continued costs that we will continue to take out of the business time. We were of substantially on the quarter up substantially quarter on the her go. We will look at efficiency there and make sure we are running it as efficiently as possible. Manus looking at Morgan Stanley<\/a>s numbers, Goldman Sachs<\/a> numbers, and your own, they are significantly ahead. The question is is it getting harder to compete for business . Is there a dynamic shift and where to go to execute business . Mr. Dougan i think in businesses where we are focus, we are doing it extremely well. If you look at structured products, the credit business which was more difficult in the quarter, emerging markets, those are businesses that are power alleys for us and we do extremely well and can compete with anybody. We have a very good franchise there. I think our businesses are performing quite well and performing well for our shareholders as well. I think we are in the businesses we targeted, i think we are doing extremely well. Manus capital ratio is down to 10 . This has been ongoing every time you when i have gotten together. Is there a justifiable case to say lets raise, not for you, but raise capital while there is still a Regulatory Risk<\/a> . Clear the issue. Mr. Dougan we are more focused on the leverage ratio. That appears to be the more binding issue. In the First Quarter<\/a>, we made tremendous progress on the leverage side. That is something that remains positive. We remained at 10 in terms of the capital ratio. There are a lot of technical issues around that, some of the share purchases we made, etc. We have a capital generate of model overtime. I think that organic generation is sufficient to where we need to get to. I think progress on leverage, i think we are in a strong place on capital, particularly overtime. The business is capitalgenerative enough. Manus as you finish your time at Credit Suisse<\/a>, regulators and capital, have they gone too far are we far or are we at the peak . Mr. Dougan a lot of things has been done. One of the things that drives me crazy is when people say nothing has been done in the industry. A tremendous amount of change has been undertaken in the industry in terms of increased liquidity management and all sorts of capital. Not just common equity, but contingency capital. There is a significant level of capital to sort losses. There has been a lot of change. You will have a debate whether that is enough or more is necessary. There is a continuing move towards requiring more than where we are now. I believe that the system is safer and sound are now and it is in a better position. Manus you are a market man through and through. As you look at the past 24 hours, greece reaching to bring money back to the federal bank and Federal Reserve<\/a>. Central bank and Federal Reserve<\/a>. What is the biggest market risk as you look at the world . Mr. Dougan there are a number of geopolitical risks. I think greece is clearly one of the things that is preoccupying people now. I think those are the more intermediateterm. In the longer term, the issue will be Interest Rate<\/a>s, when they start to rise and the impact that will have. We have been in a very long time of very low Interest Rate<\/a>s and i think a higher Interest Rate<\/a> environment will take some adjustment. In the longer run, that is probably the bigger issue. When that will actually take place is anyones guess. Manus do you share jamie dimons concern about the volatility in the market about the super taper transfer . Is that some thing you would consider . Mr. Dougan i think a lot of the changes we have undertaken to make the regulative segment of the industry safer and sounder have brought on changes of our structure. We have seen some of the impacts of that. I think some of those concerns are legitimate. Manus eight years in the hot seat, some of the hardest markets, some of the toughest regulators demands, investor demands. Is there any part of the past eight years that make you look back and go actually, this is the part i enjoyed the most about my tenure in the seat at Credit Suisse<\/a> . Mr. Dougan i think coming through the crisis. We got a lot right and came out of the crisis quite strong. I think we anticipated a lot the change on the regulatory side well. We were also very thoughtful and a constructive participant in making the markets safer and sounder. A lot of the issues around palin capital etc. , we were theyll and capital, we were one of the issues making a. It is one of the issues making it safer and sounder. All of that was satisfying in terms of being able to work through it. It has been a tough period. The best thing has been the people you work with. People in Credit Suisse<\/a>, people in the industry. There are a lot of very good people here. Caroline lets shift gears a little bit and look at a cash call in greece. Prime minister Alexis Tsipras<\/a> ordering the local governments to move their funds to the countrys central bank. Lets go to hans. Moves like this, they are not totally unprecedented. We can look to latin america potentially. Who has taken the sorts of measures before and what does greece actually hope to find in terms of sums of money . Hans the amount that they hope to get from counties and cities is around 2 billion euros. That is according to a person familiar with the matter. There is some precedent for this. We saw argentina do this when they nationalize tensions in 2008. In 2012 they pooled some of the foreign reserves to pay off debt. It is not without precedent. In general when we look at some of the payments coming up for greece, yes they have the 80 million euro payment for the ecb, they have may 1 around 200 Million Euros<\/a> to the imf and on may 12, that is the big one that everyone is concerned of, north of 70 Million Euros<\/a>. We will see what happens because we will have the may 11 finance ministers meeting in brussels. In general there is little reason to be optimistic about the greek situation. Weve heard from the former ecb bank president. He was talking about how there is a need to actually have a program and get the program in place. Jeanclaude if there was a program that would inspire confidence, all of those dramatic problems with look secondary. There is no confidence, there is no program. The key for everything is to have a credible program. That will be considered credible by the Friendly International<\/a> community. Hans yesterday the yields on greeces threeyear debt jumped up 183 basis points, close to 28 . That is where they are trading. We have seen credit defaults at the end of march that are about 67 . This crisis is in the risk of the fault like greece. They are all the way up to 81 . We will be watching the Market Reaction<\/a> today. I just spoke with jason furman, chairman of president Barack Obamas<\/a> council of economic advisers and he says time is awasting. Caroline desperate times. They say is unforeseen needs that they are doing this. What the cities and municipalities comply with these unforeseen needs and desperate urgency . Hans the city council of athens will be debating later today how they will provide, if they will comply. The Opposition Party<\/a> in greece is seizing upon this. Heres what a spokesman had to say. The deadlock that has been brought on by the government cant be paid for using the wealth of the greek taxpayers through an internal default. I suspect we will hear more about the fall today but look for the distinction being made between default and exit. Can greece miss payments and still stay in the eurozone . It is a crucial question for the eu and most crucially, the European Central<\/a> bank. Caroline . Caroline hans nichols, thank you very much indeed. Mark Credit Suisse<\/a> reported earnings in line with estimates. Earnings for the Investment Bank<\/a> he estimates. We will have the numbers with an interview with radio can labor gazprom interview with brady dougan a little later. Gazprom will have a probe. The eu has been examining whether the company contracts unfairly link oil and gas prices and prevent customers from reselling gas. The eu president has called a summit on april 23 to address the growing humanitarian crisis in the mediterranean after a boat carrying hundreds of people capsized off the libyan coast. The situation in the mediterranean is growing. It cannot continue like this. We cannot accept that hundreds of people die when trying to cross the sea to europe. This is why i have decided to call an Extraordinary Council<\/a> this thursday and this is why i traveled to the region. The objective of the summit is to discuss at the highest levels what the Member States<\/a> and eu together can and must do to alleviate the situation now. Caroline a desperate situation. That is coming up next. We speak exclusively to the sap chief executive Bill Mcdermott<\/a>. They reported sales up 22 . A bit of a boost in the strength of the dollar. We will be chatting about that and the move to the cloud after the break. Caroline welcome back. Earlier we had breaking figures for sap. Lets head over to the covenant posture meant headquarters where we are joined by chief executive Bill Mcdermott<\/a> for exclusive interview. Wonderful to see what can, mr. Mcdermott. 22 growth in sales. Stripping out the strength of the dollar, tells what is underlying in the sales. Mr. Mcdermott yes, we were. If you look at the business every single region of the world was in doubledigit growth territory. Both with and without the currency effect. The currency effect is very helpful. It took a full percent Growth Business<\/a> 224 . In every region we had doubledigit growth. What was also exciting in the cloud we had tripledigit growth and that was 131 year over year growth and 207 growth in our new division, the Business Network<\/a>, which handles interenterprise computing with labor materials and expenses. We are off to a really nice start. The company is quite pleased with the growth rates. Caroline talk to us a little bit about the cloud. This is a big shift that has been going on. You are really focusing on the cloud element. What about your targets . You said in january that 2 billion euros of cloud that that was existing contracts that would be helping with that. Looking at your competitor oracle, they say we will get 1 billion of new cloud contract to can you tell us about what new cloud contracts you will be getting . Can you measure them for us . Mr. Mcdermott yeah, of course. What we do in the Cloud Business<\/a> that we are in his we get a mixture of existing accounts and new accounts. When i talk about our business going in advance of 2 billion euros in the cloud, that is a very healthy combination of existing and new. To put a number on it, you are probably somewhere around 65 new and 35 existing. What is also quite interesting about sap now is we have 80 million users consuming value from our software in the cloud which is more than any other Software Company<\/a> in the world. We kind of have hit the Tipping Point<\/a> of scale as the number one and we think we will have a really, really strong year in the cloud and a nice run to 2020. May i also caroline, mention the Business Network<\/a> . Because not only do we get the transactions of new accounts and the growth in the cloud, but with the Business Network<\/a> you make money for shareholders on all the transactions that take place in the cloud. So far that is off to a great start where it is actually growing at 207 a year. We think we really have nailed it on a great vision to make a world run better and improve peoples lives, but also migrate sap to a Cloud Company<\/a> powered by hana. It is evident that the market likes what they see. Caroline you have been nimble. You have adapted. You have taken on the cloud front and center. You say you have 80 million consumers. What about your competitors . Who is your key competitor . Is it or salesforce or someone new . Mr. Mcdermott that is a great question. We have the traditional competition with names like oracle, which you rightly mention. At the cloud, you are competing at the line of business level. For the head of Human Capital<\/a> management or hr, we might be competing with a workday. For the sales department, you might be competing with salesforce. Com. What is interesting about sap is that we now, with our s4 hana launch, have taken the core operations of a company and built them on a realtime inmemory database platform. You can run the whole company on one database. Why is that important . That seamlessly integrates into the line of Business Executives<\/a> that is procuring solutions from the cloud and it also integrates into the Business Network<\/a> where commerce is being conducted between companies. All of this enables you to manage this industry 4. 0, for the internet of things world we are living in where you not only have to digitizer company but you have to digitize business. Of course, your executive talent, but also outside your company with labor, your customers, and your supply chain. Only sap has been built to do that. We think that is a differentiating factor, not that we dont have good competitors. Sure, they are good. That is why we believe our strategy to be the right one. Caroline we only have 30 seconds left but is it the Business Network<\/a> you are focusing on . How much of these transactions are going through the core part of your business rather than the licensing your charging for the use of saps programs . Mr. Mcdermott a very important question, because today if you take alibaba amazon, and ebay, and you combine all those brands and double them inside saps Business Network<\/a> is twice the size. Today we have about 750 billion u. S. Dollars transacting between our Efficient Networks<\/a> eliminating all kinds of bureaucracy like checks and p. O. s and having efficient payment streams. We think this is a 10 trillion u. S. Dollars market and we are not only the first mover in this market, we are the only one. It remains to be seen how big we can make it, but we are quite optimistic that this could be a tripledigit growth story for many years to come. Caroline Bill Mcdermott<\/a>, as optimistic as ever. It has been great speaking to you. Chief executive of s a. P. Mark israels teva is making a play for mylan and what could be the biggest pharmaceutical takeover of the year. Elliott, good morning. We understand tevas bid for mylan could come as early as today. Elliott the combination of mylan and teva has been speculated about for quite some time. They are giants in the generic Drugs Industry<\/a> and it would create the undisputed champion. What seems to move it from speculation to something more closely approximating reality, that happened in the past week. Maybe the past month. What seems to have been the trigger was mylans own unsolicited bid for an over the counter drug manufacturer come american, domiciled in ireland one of the famous tax inversion deals and also happens to be listed in israel as well. That was seen by many as being a defensive move by mylan to make itself so big that teva could not possibly come along and swallow it. As it is mylan, according to the closing trading friday, was worth 33 billion. That is by far the biggest deal that teva has tried to do. Its biggest so far was just under 9 billion. Not only would that be the biggest deal in the industry so far this year if that deal is tabled as we expect, it could be as early as today, it would be the biggest deal teva that teva teva has done as well. Mark mylan seems to have rejected this deal before it is even been tabled. Elliott yes, quite an unusual move from island. From mylan. This was not something that was totally unexpected. In a statement put out last week by the executive chairman, he said we have studied the potential combination of mylan and teva for some time and we believe it is clear that such a combination is without sound industrial logic or cultural fit. He was referring to many overlaps between the two companies. The more you overlap, the more opportunity there is for cost reduction. Teva wants to be the undisputed champion generic, to boost profits and it is also mindful that its biggest selling drug a treatment for multiple sclerosis, that is facing generic competition as early as this year. Coincidentally, just last week the u. S. Announced the first generic competitor to tevass drug. Mark greece moving public funds to its central bank to meet imf Debt Repayment<\/a> deadlines. Mark welcome back to countdown. Time to sell says japan. The dollaryen and the yen is higher. The surprise rally just is another reason to sell. The end stages of one of 2 peers to gain of this the dollar. The currency tumbling since his weakness. Japans government pension leaves an avalanche of funds and to foreign assets. They are saying they yen will slip of more than 3 to 123 per dollar. 125 by the end of the year. Our median estimates of morgan 60 strategist by bloomberg. 119. 51 today. It would surpass the level that was the weakest since july 2007. Anna some of the other top stories. A five sidney rice and in the ninemonth revel a 5 cent rise in the ninemonth level. Loreal has reported a 14 increase in sales. A weaker euro held to compensate sluggish growth. Hsbc has indicated it will move its headquarters from london. It could be after the general election in the u. K. Beginning to shareholders, the chairman said moving is a possibility. Britains main Political Parties<\/a> have valid vowed tight regulations. Mark er lets look a greece. At greece. Here with the more is Bloomberg Intelligence<\/a> david powell. How important is this may 12 for the imf from greece . David it is the largest for the month of may a colleague up over the next few weeks. The market would not take lightly if greece was not able to pay. It would not be the end of the world. It not the same as defaulting there is a whole series of measures that the imf goes through before labeling the country in arrears. It is really three months before the imf issues of Public Statement<\/a> that greece arrears. Caroline bank crew Caroline Christine<\/a> lagarde was not sounding too happy. Tell us what a deal could be done with the creditors and when . David powell there is a fourmonth extension agreed by the end of february that expires by the it of june. Thats a soft deadline. The real hard deadline is july 20. Thats when the bud of the ecb will mature it has to be rolled over that is when the bond of the ecb will mature and it has to be rolled over. It would be a default not just arrears. And most likely the ecb, the banking regulator whatnot be able to say the groupings are solve it. Greek banks are solve it solvent. All of these agreements are really the last for the second bailout package. That would allow them to go through the rest of this year with financing. After that, they would have to negotiate a third bailout package. And a looking for 26 table. Caroline it and never is. Mark some negotiation of its debt bonds tied to gdp or some type of arrangement . David powell the greek government has been broadcasting what Everybody Knows<\/a> that its dead is unsustainable. Robert not able to go with the extended that was so thats probably not able to go with extended that we saw with the other government. It would never been to repay all of this. Caroline david powell, thank you. Among a myriad of data. Lets count some earnings. Credit suisse reported. They beat narrowly as they narrowly Beat Estimates<\/a>. Manus cranny second of the chief executive, brady dougan. Their earnings, listen to what he has to say. Brady dougan there continues to be had went in the business with a low Interest Rate<\/a> environment which will be with us for some time. The measures counter the changes in switzerland where you had a significant reduction in Interest Rate<\/a> into negative territory and the change in the fx side. We could tee together healthy assets. We has 70 billion which was a strong First Quarter<\/a>. The margin is 30 basis points and quite good. It is moving in the right page. We are improving the performance and lucid results. Manus equities quite nicely and fixed income also doing well. You is there a case for cost to be taking . Brady dougan will continue program to make sure we are efficient in the business. With continued cause we would take out over time. The business is performing well. Were up substantially. We are up substantially. We will look at efficiency. Manus looking at Morgan Stanley<\/a>s numbers and your own fixed income in equities, they are not significantly ahead. Is it getting harder to the pete . Is there a dynamic . Is it getting harder to compete . Brady dougan where we are focused, we are doing well. The credit business which was more difficult for the industry in the quarter of emerging markets, those businesses are power alleys for us. We can up you with anybody. Equities, a strong franchise. We are performed well and delivery. I think we are and businesses we are doing extremely well. Manus an ongoing rally, is there a justifiable case to say lets raise not for you but perhaps raise capital a beats dow Regulatory Risk<\/a> a clear the debt or issue . Brady dougan we are more focused on the leverage ratio which seems to be the more binding issue. And the First Quarter<\/a>, we made progress on the leverage side. It remains 10 of the capital ratio. There was a lot of the technical issues around that. Some of the prices we made, as saturated we have a model and generated a lot a capital. Does a sum price we may etc. Some of the prices we made etc. On capital, in my view, it is enough to take care of that. Manus as you finish of your tenure creditors have they gone too far or are we at the peak on the demand of banks like yours . Brady dougan obviously a lot has been done. What drives me crazy is people say nothing has been done in the industry. A tremendous amount of change has been undertaken with the liquidity management and al qaeda capital and a lot of capital. There has been a lot of change. You have a debate or if more is necessary. There is a mood to require even more. Is a lot more safe and sound and now. Manus you are a markets man through and through. Looking at markets reach to the central bank and the Federal Reserve<\/a> potentially on raising what is the biggest market risk . Brady dougan there are number a geopolitical risks. Greece is clearly one of the things that is preoccupied people right now. I figure the longer term, it will be Interest Rate<\/a>s. When Interest Rate<\/a>s start to rise and the impact. Within a very long period of low inches rates and it is going to take some adjustment. Thats probably the longer run and probably the bigger issue. When it takes places anybodys guess. Manus the volatility in a the bond market is that something you consider . Brady dougan a lot of the changes we undertake to make the regulators take a look at the industry and say brought on changes to market structure. We have season the impacts of that. Some of those concerns are legitimate. Manus eight years in the hot seat. Some of the hardest markets as some of the toughest regulators. Investors demands. Was there in a part that makes you look back and say thats the part i enjoyed the most about my tenure . Brady dougan calmly through the crisis, we got a lot to write a came out strong. We got a lot right and came out strong. We were very thoughtful participate in making the markets safer and sounder. A lot of the structural about and we were one of the leaders in terms of helping to put those regimes in place. Those are the regimes front and Center Making<\/a> the bait making the bank safer. It has been a tough period, as you said. The best thing as the people you work with. People with a Credit Suisse<\/a> and the industry. Marv a we head out to manus, some news which we broke studying measures for emergency liquidity. Because of resistance to further aid countries and the governing council, according to people with the knowledge. To a decrease of the collateral when borrowing so says these people. The measure has not been formally discussed, it may be considered if greece fails to a visit euro area finance ministers they can reform their economies as secure a bailout funds. An interesting development. It is according to people with a knowledge that has not been confirmed by the European Central<\/a> bank. I debate lets take a back to manus cranny. This Anna Caroline<\/a> lets take it back to manus cranny. Tell us about his concerns, brady dougan, the last time you spoke to him. Manus he was fairly relaxed. The tone in his voice, it has been a tough eight years. I loved some of his phrases and he was very natural which was very good with power alleys. Some of these areas and capital and the world is a safer is sounder plays. He refers to greek as a riding issue and the liquidity. The markets are up 1 . It is a double punt for them. And Wealth Management<\/a> has been able to power ahead and able the mortgage is focused on that. Back to you guys in london. Caroline a great job. Thank you. Mark up next is bart chart. The last s p 500 record. Stay tuned. Mark time for bart chart. 30 days and counting since the last s p 500 record. March 2 was the day. That was the last day the dow jones reached a record and the day the nasdaq composite past 5004 though first time in 15 years. Since the close on that day the day it reached a record of march 2, that is the longest streak without a record since june 2013. Last year, the index closed at a record 53 times. This is the s p 500 over the past 12 months. The green circle is when the index closed at 20 was 72. 2172. It is 17 points. Just 17 points shy of the record. That is. 0. 8 . From a technical analysis, it is looking positive. It is trading above 200 day moving average. It is neither undersold or oversold. Interestingly strategists at bloomberg forecast the s p will finish the year at 2236 which is an increase of 6. 5 from year to date since january right there. The index is up 2 . Those 69th bestperforming major bloomberg out of 92 we track and bloomberg. 19 increase. A lot will depend of the earnings season was just got underway in the United States<\/a>. We consider the First Quarter<\/a>ly decline since 2009 for companies in the s p. The fed stimulus that is underpinned in this bull market since 2000 nine is showing signs all wobbling. Analysts expect a flop of companies through september. Exhaust said the feds rate hike is expected for the month of september. A lot to consider. 30 days and counting since the last s p 500 record. We are and we will remain attentive to the risk of said policy could bring a new round of market pressure. There are good reasons to think this at adjustment will prove manageable and not be very disruptive. Caroline that is bill dudley. And of course, european equities there record highs. Should investors stick to them or take their money and run . Thats what we will discuss with our next guest. Cio we were just hearing from bill dudley, the president of the new york Federal Reserve<\/a> talking about how he a quick and see inches rates going up. It was in the spotlight a you pulled back from the rest of the world. Are you expecting a rates rise of this year . Guest i personally am not. Outside of the employment david data double much more relaxed approach to Interest Rate<\/a> rises. Mark what does it mean for u. S. Stocks . Will it continue to lag in europe . Chris the problem is the dollar. Well probably see a four point 5 decline the year which is significant. Most from the dollar is sign for the oil industry. That is a problem worldwide. The dollar is the main factor. The numbers should be about september and continued to say year on year declines in the u. S. Earnings. Caroline you are more trusted to the european side of the equation. Even though we have the headline broken by bloomberg data the ecb may be discussing raining in the emergency liquidity to greece. Would it shake your opinion a . Chris darbyshire it is not. Europe is helping from the weaker euro. And the greek negotiations the negotiation both the size both sides need to arrive at an agreement. And in the meantime, a lot of posturing going on. This breaking news we saw this morning on curbing the lending to greek banks and the ecb, an example of people in the organization getting their arguments are to do more posturing further down the road. Mark china massive increase in stock prices and hong kong, too. Almost 100 higher in the past year. Do you still say buying in china should continue . Chris darbyshire it is early for the china bull markets. It is still quite she in china. Thats quite cheap in china. You have more forms. Quite cheap in china. A celebrating towards that. All of this leads to china this year. And it is leaving toward that. It is included in the em. And the bull market really gets going. Caroline what about today the Property Developer<\/a> in china which is been put into default, are you now worried in will spark flurry . Chris darbyshire i do. The its a duck to dissuade people from investing in china. It is the biggest case of our time. Breaking discipline to their economy. Bringing discipline to their economy. Through some restructuring at some point down the road. I think the message is companies will have to stand on their own two feet. Mark sterling falling do the aiken change . Chris darbyshire it should rebound after election. We have a very strong economy. While the election is going on yes, it will throw out some accommodations is scenarios. Actually, as ford investors look at sterling very stable as Foreign Investors<\/a> look at sterling couple of very stable. Not enough to rock the boat on sterling. Caroline european equities, you have skype beats slightly a Credit Suisse<\/a> being slightly. Will it be the story . Chris darbyshire european stocks meet or beat pretty decent earning growth expectations and u. S. Probably meet very low expectations. Mark you talk about a pivot to asia. Chris darbyshire substate will chart to do in our portfolios. Move hours old sure asia and bond exposure. Move our stocks to asia and bug exposure to asia. Japan is going through a revolution of source. Interasia economic block story is a good one. With fake asia will benefit. Having good growth. We seek asia will benefit. Mark thank you. Caroline on the move is next. Jonathan good morning and welcome to on the move. I am jonathan ferro. Minutes away from the start of european trading. What a rap across the board for equities. Dax futures are up a solid to 200 points. That is a strong movement. Lets get straight to your morning brief. Banks other pressure. Studying ways to rein him emergency liquidity assistance of greek banks. Cash crunch. Prime minister Alexis Tsipras<\/a> expects phones. Greek bond yields surge in the highest since 2012. Credit suisse Beat Estimates<\/a>. Trading picked up from a slow. Outgoing ceo brady dougan. Manus futures are pledging higher. Lets get your market open. Caroline trying to work out how this greek news good shape of the markets. So far, who cares . Talk about raonic and the emergency liquidity that has they give it to greek banks. If the ecb does that, thats when the crunch really hits greece. The markets used to be shrugging it off. Flat at the moment. Friends is edging golf. Stoxx 600 rallied 0. 75 yesterday. France is edging up. What about Alexis Tsipras<\/a> . 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