Of a june payment. Mark David Cameron will bring the focus home in todays queens speech. The Prime Minister than mrs on a European Tour to renegotiate britains then embarks on a European Tour to renegotiate britains eu membership. Welcome to countdown. Also coming up, an exclusive interview that you wont want to miss. We catch up with mario greco as he gets ready to roll out new strategic targets. That is at 7 30 london time. Breaking news out of zurich, swiss police have arrested him in connection to fifa corruption allegations. Hugo, good morning. What do we know . Reporter we know that three hotels that were suspected of being rated this morning, two already have been. Plainclothes police in plainclothes cars. They emerged a few minutes later with a person who was identified and they put him in the backseat with his luggage [indiscernible] mark hugo, it sounds like were having slight audio problems, we will try to get back to you as soon as we can. Just to reiterate, swiss police have begun arrests. The raid took place at the hotel which for years has been the gilded home away from home for fifa f s pampered executive committee. Of course the corruption allegations reached their peak with the awarding of the next two world cups to qatar and russia. Caroline the Member Association dissenting on zurich. Mark he is up for his fifth tenure on friday and is a favorite to win that against al hussein of jordan. Caroline it is all to do with Television Rights and viewing, but at the same time there is so much corruption. Mark the stain of scandal has not left fifa since he was voted in in 1998. He was been a member since 1975. On a financial basis he has made fifa one of the strongest independent bodies in the world. Caroline is that why he is favorite . Mark there are so many reasons. One is that each member has an equal vote and because each member has a vote fifa can focus not just on the brazils but the smaller countries and sovereign countries. So a Cayman Island is as important as germany or brazil so awarding funds to those as well often and shores the incumbent is beneficial. Beneficial to president ial voting. Caroline we will see if it does affect that residential election. Yvonne man is in hong kong with a look at the asian markets. Give us a sense been picking up the negative data. Reporter we did see a second date day of losses here and china. Getting close to that 5000 mark. 2 10 of a percent right now. Theyre losing down the 6 10 of a percent right now, there are concerns of these ipos coming up in china. About two dozen happening from now that could be freezing some money out of these existing equities and we saw brokerages and tightening of rules on margin lending. At one point we saw sticks six stocks fall and four stocks rose. The u. S. Data is looking much more positive than what we saw in the first quarter, everything from housing, manufacturing to Consumer Confidence higher than Market Expectations and talking about this outlook for the rate rise could be more likely now. The vice chairman of the fed also saying that when it comes to this rate rise it will be a slow one because of the weaker Global Growth that we see. In terms of korea, down 1. 8 the most in 16 months, japan as well. This was in the meeting from april 30, when they pushed back that 2 inflation target areas what was going on in the boardroom . Some members were saying they were worried that japan would not reach that 2 inflation by the fiscal year, one member said it was important to keep the twoyear timeframe to change that mindset overall and they decided to push that back for six months. I want to end with the dollaryen. That eight year high. Caroline give us a little bit of a sense if you can on the ftse group announcing chinese shares in emerging market indices, has there been any reaction in terms of liquidity and excitement . Reporter lots are talking about this obviously, theyre trying to open the doors to global investors. At this point it is transitional and will ultimately add mainland shares to its indices. There will be two indices in total 14 cap stock and midcap shares. We want there to be a gradual process it will be a couple of years as they said the talking about the excitement of the rally more than doubling in the shanghai composite and some trying to get in on this action. Caroline thank you very much. Mark lets move over, great creditors and progress has been slow, no sign of a deal to release the bailout, greece needs to pay the imf in early june and hans nichols has more. Hans the exchange in athens was up 1 after falling about 3 monday. Jan is Varoufakis Yanis varoufakis has promised to pay the 300 Million Euros due in june, but here is the hitch. Yanis verify this says jan us borrow focus Yanis Varoufakis is trying to put to rest this myth that they would not pay. He transposed that with what is happening at the g7. Technically greece is not on the agenda, clearly it will dominate and youre starting to hear that the u. S. May be pressing european counterparts on this matter according to a u. S. Official who says that the consequences of any sort of unpredictability or issue in greece is very difficult to foresee and they are concerned about its effect on Global Growth and european growth. Contrast that and he was talking about how a lot of the pain might be localized in greece, that it would be very disastrous but just for greece and on top of all of this, as though we didnt need anymore drama that commission resident yesterday gave on your interview and had some harsh words about jan us verify this yanis arafat this Yanis Varoufakis. At the same time he had kind words for mr. Tsipras and said he is becoming increasingly sponsored will in discovering increasingly the magnitude of his task. More negative comments from this time unclear what this will do to the negotiating ross s but it does seem to add a little more drama. Mark negotiating process but it doesnt add a little more drama. Hans the other plan is to in swiss banks, that will be discussed here in the coming weeks yesterday they floated this idea of having a transaction tax at atms so that when you pull out 1000 euros you would get taxed on it or it what they want to do is funnel more purchases through visa and mastercard systems because that way you cannot avoid paying areas they have backed away from that idea of really putting the tax on atm withdrawals. I know you always deal in cash mark, but if you were to go to greece you can take out 1000 euros without worrying about your atm fees. Mark relief. We will see later. Caroline the Irish Government has agreed to sell its 25 stake in aer lingus. The selloff comes as a mixture of cash and stocks. The listening and writing for this announcement for a long time. You are about to fly to dublin, give us a sense of why now the government has given us. It definitely has been weeks in the making with a lot of backandforth. You have to remember that island is going to have an election next year. The thing that seems to have pushed the deal over the line seems to be this question of conductivity. So i e. G. Has offered the Irish Government some guarantees between heathrow and dublin and some other cities and ireland so that seems to have been the sticky wicket that has been negotiated. The government has endorsed it and the transport minister will take it to parliament this morning. Caroline the other big stakeholder is ryanair. What do we think will come from them . It will be interesting to see what ryanair wants to do. The timing of this is favorable for ig. Ryanair has faced a lot of pushback in their own attempt by aer lingus, it is also faced pushback from competition authorities and ryanair has been very careful about what they have said. They will consider a deal when it comes to them. Have to think they would look on this situation favorably and it just comes down to a question of price. Caroline what about the questions for willie walsh. We know what the government has been dissuaded, but why is it so crucial for the ceo of ig iag . It really secures their expansion on the transatlantic. British airways at heathrow is limited by the fact that heathrow doesnt have another runway. This allows them a real growth opportunity. It also validated the vision of the airline, he has been working very hard over the past few years. Now aer lingus. Pulling all these things together and aer lingus is where he actually started out as a pilot areas in some ways you have to think that he is returning to the company he started out with an there is some sense of validation about that. Mark now the top stories on bloomberg this hour Stanley Fischer said they will consider Global Growth. They could increased borrowing costs more gradually should the World Economy falter. The way it fed will way how raising rates will affect other nations. General electric has announced stocks with according to people familiar with the matter. No deal has been reached yet and the discussion may still fall apart. One says that g. E. Post to come to a deal by the end of the quarter. He promises his government will do more than argue about europe as he lays down a legislative Program August on tax cuts including the queens speech which will be delivered today. Business deregulation and nonprofit Housing Associations to sell homes. Caroline you can join the conversation on twitter. Trending right now is that very queens speech mark was just talking about. The number one trend is the fifa news. That there have been arrests maidens iraq as fifa made in zurich as fifa officials to send on zurich. Mark we will give you more details as they become available. Back in two. Caroline lets focus on developments on the greek story. Officials from the southern european country plan to travel to brussels to meet with creditors later today and both sides will be unaware that the clock is ticking. Lets discuss this with our guest who is the fx strategist. Your base case scenario, a deal will be done, do you believe that, what do you see on the impact on the euro as well . Guest what is important now is that greece is starting to run out of cash. The pressure starting to come on for a resolution to be put together. The payments we have over june are in four separate branches. Caroline quite a lot. Guest a big number in total but lots of small little bits. The second one will be a struggle and it also means the pressure will be a slow grinding pressure. It seems that the pressure will be on for a little bit longer. In terms of what that means for the euro, our focus for the eurodollar is more on the u. S. Story as a driver. Mark janet yellen at the end of last week, has she given the dollar a muchneeded boost . Guest not only a muchneeded boost but also the data has started to show that the slowdown was temporary. We have a combination from the fed saying the amount of capacity is declining and a eurozone economy looking to be on a Strong Enough footing to give the fed the competence to raise confidence to raise rates. They have had to come back and put on the long dollar trade. Another reason we have seen quite an aggressive move. Caroline yesterday, orders of durable goods better than expected, new homes sales, better. What are the next hefty data we should keep an eye on . Guest the rest of this week is quite quiet. The key thing will be next weekend. We will have the usual run ahead of that we have the isn and we focus on employment components and then the end of the week payroll. Mark when will the fed raise rates . Are you a september man . Guest we are calling for september. Caroline in terms of what this does for the rest of the Central Bank Policies they are not the only hair and a lot of other pair, and a lot of other countries are tried to take it away but you are not expecting immediate changes. Guest the bank of china be conscious about saying anything that might cause the cap to strengthen. It continues to be a very cautious time for the bank of canada. Where we think there is room for the market to bring forward expectations is the u. K. Quite bullish on sterling because the market has pushed back the likelihood. Around the middle of next year. Mark there doesnt seem to be any concern now about the referendum whatever it takes place, whether a year or two years. When you expect pound to reflect referendum concerns. Guest what we are seeing at the moment is that positive surprise were the conservatives adding the majority is outweighing the negative sentiment that they might be around. As we get closer to the events talking within six months not until it comes on investor radar. As we saw with the general election that even though we knew it would be a risk event the markets didnt focus on it until it was out in front of them. Caroline the markets not really focusing on a rate rise. Do you think it will be preu. S. Or after the u. S. . Guest we think the u. S. Will come first and the bank of england will raise rates q1 next year. Mark you are expecting the new Zealand Dollar rebound further . What is the rationale . Guest one of our favorite trends at the moment is aussiekiwi. It has failed to break above key technical levels. The market hasnt turned to go bearish on the kiwi and it has become too bullish on australia. Room for the rba to cut. It favors aussiekiwi lower. Caroline the key pair to be looking at, dollaryen. Weve seen the yen really starting to weaken significantly. A sevenyear low. You believe that will be the trajectory . Guest long dollaryen is one of our favorite ways of playing the long dollar trade. They have rebuilt some of their euro short positions but visioning in dollaryen is still very light. Investors havent really been focused on it. Caroline what you think that is . Inflation data has been so slow compared to what the Japanese Central bank wanted . Guest the bank of japan surprise the markets last october and have not shown any enthusiasm yet. Mark are they lulling us into a false sense of security . Guest we think they could do more. They might have to change policy dramatically. Theyre coming to the limits of qe. I target on the Monetary Base to a target on bond yields. That will signal to the market that they are fully determined to reach that 2 inflation target, doing all they can match a drive it higher in dollaryou. Dollaryen. Mark who will reach the bottom first . The ecb or that boj . Guest we are more likely to get surprise from the bank of japan. They might have to do more to exchange the way they conduct their policy. The ecbs course is pretty much set. What will be important is the eurozone data. That leads to higher Inflation Expectations and a lower euro. Slightly contradictory to how we typically think of good data. In the case of the euro, when the central bank is doing you a qe it should mean higher Inflation Expectations. We see euro parity up by the end of the year. Mark the fx strategist at bnp paribas. The bart chart a little bit early today. Stay tuned. Caroline welcome back to countdown. Time for a look at the Foreign Exchange markets. Lets have a look dollar strength. We were talking about bnp paribas, and we are starting to see a little bit of a fall down in the dollar index. Yesterday surge, up 1. 3 . All of this is surrounding comments that came late on trade from the United States on friday. Janet yellen saying, this year, we will start to raise rates. Suddenly, all the other pairs versus the dollar are starting to weaken. Today, just off by 2 10 of 1 . The japanese yen is want to keep an eye out for, still keeping that level. Interesting comments coming out of rbc earlier today. They were saying look loitering is intense at 123. As we are hearing, bnp paribas feeling that the bank of japan could surprise, us once again could add to stimulus, could start focusing on bond yields rather than the inflation data. Finally, we could start to see another jerk in terms of yen weakening, dollar strengthening. Keep a night out for the japanese yen. Meanwhile, the euro has been weakening, now just up about 3 10 of 1 this morning. We are looking at greece once again. They are very much and focused. It weve got a meeting in brussels, the creditors, and greek officials notably, greece is likely to hijack the agenda in dresden. We are getting the g7 meeting. Weve got officials from the biggest economies, germany france, the u. S. , the ecb, imf, eu, all the creditors that matter at the g7. Of course, greece is going to be front and center on their minds of what happens when it comes to managing to get a bailout agreed , money to greece so they can start paying off imf payments 1. 6 billion euros coming due in june. Currently, the euro, running up against the dollar today, but we are still at 1. 09. Back to you. Mark time for todays bart chart. Greek assets from chumps to chaps. Shares in the benchmark greece index raising 1 on tuesday after falling monday. The last month has seen a bit of a turnaround for greek stocks since the asc reached that as since the ase reached [indiscernible] things look very different over the last three months. Since every 26th, that is the red circle right there, the ase index has dropped by 9 . That is the second worst performer among Global Equity benchmarks out of the 93 we track at bloomberg after ukraines benchmark, which has sunk by a 11 over the last six months. The green circle, the ase is the worst performing Global Benchmark, closely followed by kazakhstans Stock Exchange index. If you go back to the far left hand corner of the chart, the ases bottom of the global pile once again with a 31 decline. The bond market is telling a similar story. The bottom chart is the bloombergs greece sovereign bond index. It is a gauge of greek government bonds. The yellow circle, the index has returned 6 beating all other bloomberg sovereign world bond indices. Every other global sovereign bond market has dropped. We are talking about the price, of course, not th