Saudi arabia will oncene day sell solar power instead. We are live at the climate summit. Mark welcome to countdown. Coming up, i will speak to two England Rugby champions in the first interviews of the day. That is a conversation you will not want to miss. Anna mark is not looking forward to that. Lets bring you up to speed with what you have missed. U. S. Stocks climbed to record levels after Economic Data added to speculation the fed will not rush to raise interest rates. Crude oil rallied while the dollar weakened. Mark david englishs ingles is in hong kong. David we are up a further 2 . A fourday run. Not an ordinary fourday run. The biggest so far this year. I think we are up 300 points. Just from last tuesday, 400 billion of market cap added. That is for the shanghai composite. Volumes are quite heavy. Double the threemonth average. Take a look at the charts, some of the indicators, they show you at levels which prompted a move down over 12 weeks at these levels. In any case, a bad set of Economic Data has fueled the market. While we are talking about chinese markets, lets mention this major wipeout in hong kong. Three stocks, golden financial, golden properties, 35 billion of market cap wiped out. It has prompted a conversation about whether regulators should have seen this coming or done more to prevent this massive selloff. It is all up to investors. In this case, golden financial. Before the drop it was trading 25 times book value. Mark the boj announced its latest policy stance. What is the reaction that take away from what they said . David there was nothing really new. They refrained from anything new. Lets get the nikkei 225. Nothing new. 660 billion a year. That is the injection into the economy. The bet is improving growth. That will help, or at least put upward pressure on inflation and Inflation Expectations. Where do you go from here . Will japan ever get to the inflation target . We are not very near it. Earlier today, we spoke to an economist at hsbc. She covers japan karen listen into what she had to say as far as the Inflation Expectations are concerned. I think they will get close to 2 . It is a matter of timing and fees. We do think there will be disconnected between the actual pace of price growth and their target. David dollar yen, stronger today. 120. 81. If we do get a press conference later. Mark david, thank you. Anna latenight negotiations broke down without any sign of a breakthrough. For a deal to unlock bailout funds. Hans nichols has the story. After the hold and the conversation last night, what is the next step. Hans the leaders agreed to stay in close contact. They will continue to talk. We had the leaders in the room almost all the way up until 1 00 a. M. In close proximity. We know what the dispute is. The red lines continue to be performing the vat. Additionally, what about labor costs . The primary account surplus what you do on those figures. There is the opportunity to continue discussions today. Most of the pessimism seems to be driven by the fact that Francois Hollande was confident coming into the meeting but coming out, nothing was matched and there was no tangible sign of any deal being reached. Anna what should we watch out for in terms of the ongoing greek saga . Hans it looks like there may be another meeting. There were reports that uecker had a half piecemeal plan. He denied that and said that was not on the table. Theres always a chance for talks to restart with all the leaders. And then there is data coming out of greece. It is coming out around 11 00 london time. That could influence the conversation. If we get a sense the economy is deterring faster than expected. Anna thank you very much. Watching all developments greece taking place. Manus lets stay on the subject. We are happy to have you in. This is just continued talks. The greeks have red lines. Europe does not sound as if it is yielding. What is your scenario at the moment . You have three outcomes. Lay them out for us. Guest what we call a semi stable agreement is the most likely. We put a 60 probability on that. The idea is a political agreement will be made, and initial payout will be made. Then we will have to negotiate a third bailout package. We have seen the situation rumbling around the situation. There is a risk of new elections in greece as a result of this. We find it difficult to see where there is a solution and we can say, greece is solved. This is an ongoing issue. Anna it looks as if when we get the breakthrough, it might only feel like a partial breakthrough. Only with the europeans and not the imf. We end up with some of the funds on locked. Michala they tell us to participate, the debt situation needs to be sustainable. With the deterioration of the public finances and the Economic Situation the debt sustainability is not met. That means an initial compromise is likely to rethink a third bailout package which we estimate would have to be in the vicinity of 60 billion 80 billion. Mark how likely is a new greek election . Michala there are many possibilities. It is not a black and white situation. It is nuances of grays, if you like. A new election is something that could happen. It depends on how the different fractions line up and where the copper mines is are reached. Back to your famous redlines. That is very difficult today. Manus the fed are worried about greece. Europe is worried about greece. Are we estimating the economic reverberations that could potentially take place even if we have a semi stable bailout scenario . Michala there are three elements we need to focus on. If we think about the absolute size of greece in relation to the european economy, it is relatively small. If we think about the potential losses, they are more significant in terms of the target to bailout exposure and private sector exposure. Thats probably just over 1 of euro area around 3 of euro area gdp. It is manageable in size. The risk of contagion comes down to how do markets perceive a potential default with the risk of a potential grexit . And then how are the politics managed . If you have a situation where collector its are suddenly being told they are suffering significant losses, this is a risk that could further fuel some of the populist parties we have seen previously winning on these issues. Manus we have a lot more to get through. You are going to stay with us. Mark the top stories on bloomberg. My own draghi and other policy makers eye portugal. Draghi said conditions have improved somewhat but growth is too low. David cameron has a cameron is seeking changes to treaties and eu welfare reforms. He can make the case to voters to stay and the union. These plans are not part of the summit agenda and will have to be discussed on the sidelines. Hsbc has suspended credit trade in london this month a ccording two people familiar with the matter. People dont know the reason for the suspension. Manus we are all on twitter. There are only three people worth listening to on greece. The countdown and michala. Anna we have a starstudded cast today. Mark we will speak to two England Rugby world cup winners. Their first interviews of the day. Manus in an other exclusive, a guest from climate finance day in paris. We are back in two bang minutes two minutes. Manus climate week continues in paris. Caroline, what is day to all about in paris . Good morning, it is manus in london. How are you . We seem to have a problem. Caroline good morning. Manus you are there, i thought you were just playing with me. What is day to about . Two about . Caroline it is the final say. Executives from the world of finance who are going to discuss how private finance can help and how Climate Change is a risk to the stability of the global economy. Investing less in industries which are big consumers of fossil fuels. We have had interesting surprises so far, including from the Saudi Arabia Oil minister who was speaking with my colleague Francine Lacqua yesterday. Saudi arabia is the biggest exporter of oil. Even them, they want to do their part to fight against Climate Change. Saudi arabia we recognize eventually, one of these days, we are not going to need fossil fuels. I dont know when. 2040, 2050 or thereafter. We have embarked on a program to develop solar energy. Why . When we look up, we have the sun every day. Acreage to lay them out. A very attractive project. We are embarked on developing a major integrated industry from the silica and in the ground to the panels and electric company. Hopefully one of these days instead of exporting fossil fuels, we will be exporting electric power. Does that sound good . . [applause] one of these days, in 30 years . I think we will see major gigawatt production in the next five years. Caroline the oil minister saying they are embarking on a big program to double solar energy. We might have some doubts about whether this is going to bring as much revenue as the oil industry in the shortterm but it is a sign that the Global Community is realizing the emergency. We are 200 days away from a conference. Six years after the failure of the copenhagen summit, there is much to do like putting a global price on carbon and finding a binding agreement which will involve the u. S. And china. We will talk to many executives. That is coming up in the next hour on bloomberg tv. This is a new name that has been changed to better manus thank you very much. Anna stay with us. The global head of economics. Oil heading for a record run. We have come a long way since when were talking about when oil was 30 a barrel or 40 a barrel. Back up above 60 now. Where are things heading in the Energy Debate for you . Mihcchala clearly there is a dollar link to oil. To my mind, basically, when we look at the oil market the 5075 dollar range does feel comfortable at the moment. When you think about what is the marginal cost of the production of shale, obviously there are different numbers, but we are in that range wfor some considerable time to come. In the meeting about the geopolitics of russia and Climate Change, it is the european project of the energy union. This is something that if it does move forward could be good. We see several european economies facing an energy challenge. Infrastructure investment. Draghi is calling for more expansion. Obviously, if you can develop the energy grids and networks, you can help some of the security. Then you can think about the climate aspects of it. And you can see how the union can pull the threads together. Mark survey data was mixed after the encouraging gdp number. Is there a concern that the Second Quarter could be a disappointment . Michala when we strip down the details, it was the story of private consumption and some inventory. When we look at things like that export sector, investment, these continue to lag. The survey data does give us a sense of some of the momentum flattening out. Nonetheless, i think we are running somewhere around the 1. 5 mark which is above trend potential growth. We estimate it to be around 1 . It is still not that strong growth momentum we need to get things like that sustainability in place. I will say it once again, we say it all the time, structural reform comes into the picture. It is painful and annoying and i think it is absolutely key we get the Structural Reforms going here. That to me is the most important thing for europe in the years to come. Back to the energy union, that is very much part of it. Labor markets, pensions. All of those things. Manus the bank of japan has cap a yearly target for quantitative easing. The yen depreciation continues against many currencies apart from the dollar. You expect the bank of japan to move again . We have had encouraging data. What is your take on the data this week . Michala once we start breaking it down, we find a similar picture. It is very much a domestic story. We are not seeing enough momentum coming through. Looking at japan, we are constructive. We are beginning to see some of the improvements on the income side. That should also lead to improvements to your question about the boj, i think it is likely the boj would come in with further easing but probably a little later in the year. Anna stay with us for a minute. The Russian Ambassador to the eus book to us in the exclusive interview about his countrys relationship with greece. Greece has not asked for one. Russia is not imposing its money on anybody. I dont think this should be a method. Greece has indicated, the greek government has indicated it would be happy to see enhanced russian investments. I am aware of certain projects being developed along those lines both in the energy sector, the transport sector. We have always had good relations with greece. Based on shall i say our common religious ties and historical ties. The role of russia in the 19th century in greeces struggle for independence was quite an important one. Anna the Russian Ambassador to the eu talking about russias relationship with greece. As they watch what is happening close to their borders in riga how does the russian economy look to you . Michala obviously there are cyclical publications coming from the current sanctions. Implications from the lower oil prices. I think what is really important is what are the longterm Growth Prospects for the economy. I think it is quicker russia is able to secure a political solution to the current crisis. This is key for foreign direct investment. Anna more Structural Reforms. Thank you. Coming up ukraine and european leaders are said to degree are expected to agree for the wartorn country. Manus lets check in on the Foreign Exchange markets. Home sales were down. This is the performance over the week. The fed did. Manufacturing dipped. All years will be on what janet yellen has to say. We are looking at one of the biggest weekly to heinz declines of the yen. The currency has weekend over the past month against the broader basket. I want to show you two currencies where you begin to understand. Sterling and euro strength against yen. This is the pound up against yen. The euro rising against the end by nearly 5 . Morgan stanley says, you want to buy dollar yen with a target of 127. Yen is one of the most moldable currencies according to morgan stanley. As the fx check. That is the fx check. We are going to head to riga where the Eastern European summit is taking place. We are taking joined by the European Commission vice president. Thank you for joining us on bloomberg. Officially, the discussions were productive with regard to greece. Where did you progress with regards to greece . Guest first of all this is the Eastern Partnership summit so the main items are with regards to Eastern Partnership countries. As regards greece, what i can say is technical negotiations are still ongoing. We know progress has not been as fast as it should. We are in the second half of may. The negotiations are still ongoing. Those are all reasons to step up the negotiations and complete the bailout graham. For this to happen bailout program. For this to happen, it is important that all sides stick with their commitments. Manus we understand there are red lines from greece. Did you discuss those red lines . Was there any movement by greece on those red lines . Vat . Labor reform and pensions . Mr. Dombrovskis technical negotiations are ongoing intensely. Brussels is working intensely. It is important that degrees percent a comprehensive package. It should be clear that there is a clear exit strategy. How greece is returning to Sustainable Public financing and how greece is returning to the Economic Growth. Manus was there any discussion of a twostage resolution to be considered . Mr. Dombrovskis currently from the European Commission point of view, we are concentrating on the scenario which foresees successful completion by the end of june. Manus one of the key elements of the resolution will be all sides making commitments. Our understanding is for the imf to meet their commitments the amount of debt greece has must be addressed. Has there been discussion about the debt sustainability of greece . Mr. Dombrovskis debt sustainability analysis is certainly an important part of any bailout program. To ensure that sustainability, debt sustainability, it is important to ensure sound public finances. After successful completion of the program, there could be discussions on the greek conditionality. Were not discussing this. 2012 allows a step conditionality issue. See how that can be addressed. Manus what do you think of the proposition that these discussions have gone on for 120 days now. It is almost a daily sitcom show. You believe the ongoing discussion is damaging the global reputation of europe to deal with issues that arise . Mr. Dombrovskis certainly this is a very competent at situation but i think it is first and foremost important for the Greek Economy and greek people that the agreement is reached as soon as possible. Manus would you agree this is a european problem and has not been resolved as a real or ongoing issue . This is damage to reputation at its worst, isnt it . Mr. Dombrovskis well, it is certainly ongoing. That is why the European Commission is emphasizing so much the need to speed up the negotiations and successfully complete the negotiations. To do so based on a current oil out program. Billail out program. Manus you were finance minister of latvia. Given your experience, do you think what europe is asking greece to clement is fair . Mr. Dombrovskis the question here is, if the country is in a situation where it is cut off from the financial markets, it is first and foremost important to regain Financial Stability. Financial stability is a precondition for Economic Growth. If you dont have Financial Stability, banks are not lending to the economy. Citizens are not spending. Companies are not investing and you are getting deeper into recession. The program is oriented