Is down for the 19th straight away. West texas up. Futures are up for light relief. China goes for a rate cut. The overall story in liquidity is Institution Banks adding to the liquidity of the markets. Again delivering more of the european market. The purchasing Managers Index for the whole of europe will also be delivered. Lets check in on the u. K. We are up about 01 . Vodafone up. Test go, tesco. A number of deals happening this morning. They are selling some assets. Some other names where focus on. Trading at 327. Buying the belgium asset. They will get 3 billion euros in cash. Lloyds going, going gone. David cameron has his way, it will be sold to small investors. That is the latest political market. Encouraging Retail Investors to want to hold a portion of lloyds. Bizareere for David Cameron linking belling out lloyds was a bad thing. Maybe he was not around. Deutsche bank up 0. 5 . Employees vote for an open ended strike on top of the snp. Last week, three options and place for Deutsche Bank. Reduce overall retail footprint and the size of investment banking. That is in play as well. On the commodities side, you are seeing oil in the commodities and china reduce reserve rate requirements added liquidity and commodities got a small got smaller the copper side. 0. 3 . And bhp this. Do i have my yuan a look. What comes next for china . Will they go for more stimulus . Will they go for another . That is the dollaryou one yuan. What is next . Johnny. Jonathan the ftse 100 is up 0. 6 . Gains across much of your. Manus said we have to go straight to beijing. They stepped up stimulus for reserve bank requirements. They want a reduction in the reserve rate to allow banks to use the landing. Lets get to Bloomberg Intelligence chief economist, tom. Lets talk about the motivation. I am looking at the house prices over the weekend. Anything to do with what is going on here . Reporter i think house prices are part of it. There really 2 big factors the centralbank is thinking about. Firstly four years, china has had capital inflows and investors betting on an economy and rising currency into the country. The central bank has had to raise the ratio for the liquidity. Now, these funds are exiting. That was the second half of last year and was a sustained outflows. The reserve requirement cut frees up more funds for the bank and offset some of the capital flow. The other big factor when you alluded to the housing prices is really worrying concerned that chinas economic engine is sputtering. Real estate sales are falling. New construction is down. Exports are very week in march. The key drivers are not really doing their job. Thats why the government is accelerating stimulus efforts. Jonathan when you look at last time of easing from the bank of china, what is the impact you are expecting to see with a time to feed to the general economy in general impact itself . Tom orlik that is a great question. When we look at the reserve requirement cuts, the important thing to remember is its a boost to the supply of credit. The Banks Capacity to lend. What it does not do is anything to the demand of credit. The issue there is chinas firms are carrying a lot of debt and overcapacity and facing growing uncertainty about the future. That is venting their willingness tell borrow and invest in new products and new plants. And so, the issue there really is how can the centralbank go beyond boosting the data the supply of credit and towards boosting the demand of credit . The answer seems to be they need to cut the price and cut Interest Rates and that is why many analysts are thinking this reserve requirement cut is not the last step in the easing. Jonathan as you alluded to, you can get excited about the biggest with the rates at 18. 5 percent, clearly a lot of room to go, isnt it . Tom orlik that is right and the Central Bank Governor is in washington, d. C. For the Spring Meeting over the week end and he said basically what he said was the difference between us and other Central Banks around the world is that we have room to ease. Japan, the u. S. , much of europe, Interest Rates are at the zero end. That is not the case with china. The central bank continues to have space to cut ratio and Interest Rates and i think our expectation, the expectation of most of economists out there is we will see further moves on both of those fronts in the second quarter. Jonathan a big thanks for joining us. China expert tom orlik. We are joined by a global Asset Allocation strategies at ubs investment bank. You heard tom speaking. Lets talk about what the people are doing over the weekend. For you, the move on friday lets talk about equity markets margins around lending. Those things, are they link . Guest the Property Market and thats the most important thing. The thing to remember is the size of the urban population is growing by 1. 5 times the size of london every year. There that in mind. A lot of people about 300 house buyers and they are looking to upgrade. They are looking to buy a nicer house and looking to buy something perhaps more expensive and they are funding that through mortgages. That is the key thing. We think the government is very keen on pumping up the Property Markets. We think that will be a drag on markets. If you look at equities, look for the companies linked to property construction. It is iron ore producers and steel producers. Go for people who build mobile networks, selling the equipment feeding the middle class urge for improvement off life. Those are the key companies. Jonathan clearly this space, 18. 5 on the rrr, how concerned are authorities about that the huge of boom we have seen in the shanghai . Ramin nakisa you can buy property or equity. What we have seen is a flipflop. The Property Market selloff. My father would probably be advised me if i were chinese to buy. The really interesting thing is when they open up Capital Markets and take away capital controls and star binding to global markets. It is fascinating when i go out see their review of what are they invest in. Jonathan we often talk about pushing on a string. The problem in china, spare capacity. If your problem is huge excess capacity, you can do all you want to try to increase liquidity. It is not going to make a difference. Is that the problem in china . Ramin nakisa i think there will be demand and the change in the dynamic of employment and were also seeing an aging demographic. They are and there are less jobs. A move to Service Companies which are more intensive. We are seeing more consumption. That will be the driver of gdp in the long term. As a shortterm investor, i have to look at these booms and busts. Jonathan the here and now, not just china but europe. Best quarters since 1998 for the stoxx 600. Huge for the shanghai composite. When is the selloff . Should we ask when do the stoxx play catch up . What happens with u. S. Equities . Ramin nakisa we see a big weakness in u. S. Numbers, a horrible payroll number. Disappointing consistently since the beginning of the year. We think it might be a soft patch. If not and the dollar eroding, the u. S. Is looking much less attractive. Money is chasing qe. China in europe, thats where the etf money is flowing. He is flowing out of the u. S. Into europe and japan. That is the key driver of the moment. Jonathan more to come from china . Ramin nakisa definitely. Jonathan ramin nakisa will stay with us. The greek bomb ticks. The bond vigilantes are on holiday. Is it time to wake up . Lloyds and David Cameron. What it means for the general election. Join us after the break. Jonathan dont back down. Greeces new government is deadlocked with creditors. It may call snap elections before giving up ground. No Real Progress emerge, a new reform deadline may have. Another deadline. We are joined by hans nichols. I am pleased to say we have a ubs investment banker. Hans, a new deadline if it is midmay, what does eurozone finance minister going to be doing later this week . Hans [laughter] they will be taking stock all the talk, the significance. The real deadline is when greece runs out of cash. That is what said out of hollander this morning. When they run out and it could be midmay or later made, they have been payments do. They owe 80 million euros. In may, that starts to crunch free here is what i will watch for. To what extent are finance ministers talking about firewalls . You heard from mr. Dies will dusselbloem he thinks the rest of the eurozone can withstand an exit. He had this to say and said the content we are a far apart and everybody sees the process is difficult. The line out of the imf meetings in washington was there was not much progress and taking too much time. If youre looking for a bit of optimism and i have an interview with a german newspaper that was published and they are saying there was some incremental progress from the imf with the greek officials over the weekend. That is about the only bit of optimism. Everybody said of the big issues remain. From the greek side, nothing but the fines. They seem to be laying out there red lines which include pensions and wages. Jonathan . Jonathan we had an election in finland and it looks like and will make it into the government. What is the significance . How does it tied to greece . Hans they make a to the Foreign Ministry but as they get the finance ministry, it will may shortterm negotiations that much difficult for mr. Varoufakis. Longterm, it will make the prospect or likelihood of a third bailout for greece which would have to go through all 19 parliaments that are members of the eurozone that much more difficult. Finland is almost of the right of germany when it comes to pushing for austerity for greece. These Election Results will move feeling to further to the right and further down the austerity road. Jonathan hans nichols. Lets bring in our reporter to the conversation. If we get an election and they win it again, what changes . What happens . Report of a be much more clearer. We will have hard talks. That reporter it will be much clearer. We are moving into a euro environment or we are moving away from that proeurope or a referendum and i think it will need much clearer where we are going. Jonathan what breaks of the deadlock the politics or elections, referendum coffers running to drive running dry, or from the Banking Sector . Ramin nakisa i think it will be deposit light. The banks see collapse and the rational thing is for people to take their money out of greece and put it into germany. If there is a default, what would you prefer . Would you prefer a greek bond . Or denominated in georgia marks . Deutsche marks . It is rational to put it in germany. Jennifer in jonathan in athens where the pleasure of having you today. Are you seeing signs of dissent over the last couple of weeks . The public, is a turning . Vassilis karamis they were opening polls and around 85 of positive opinion. The last few weeks bankruptcy is coming closer as a possibility, you see the positive opinions are going down around 55 at the moment. Jonathan lets bring it into our world. I am looking at the markets free Something Interesting happened. A scenario of 2012 starting to seek back in. Do you expect the risk aversion to play out . Ramin nakisa we have been advising clients to lock in their profits when the stoxx 600 reached 400. We were 406 on friday. A 10 selloff of where we are now. Long term, we are very bullish on a euro. Shortterm, people should buy protection. What we did was to buy that would expire before these huge redemptions of 3. 6 billion. Theres no way greece can pay those unless they agree to the terms of the institutions. I think that will be the crunch point. Buy protection and sell toward the end of the year. That makes good profits. Jonathan the big redemptions in the summer, given everybody else in europe talking about the reforms at may be 7 billion euros, that just about covers the ecb redemption never mind and the rest. We need a first bailout package, do we not . Vassilis karamis that is why we hear it extended. The extension going into june that was the main point of another bailout and the current Bailout Program that will be able to make greece able to meet its payments. Greeces problem is not a liquidity, a political problem. Jonathan looking at the politics, how do we get past this . Vassilis karamis right now it can only be broken by another election or referendum. We are not clear. Jonathan do you think that is where we are headed . Ramin nakisa a selloff and potentially a default in greece. Jonathan is that something people are talking about . Vassilis karamis they have started. People in the market understand it will be last resort for the greeces Banking System and it will be cap they flow. Jonathan ramin nakisa and vassilis karamis thank you for joining me. Coming up how low can german bond yields ago . Something we are heading towards the role. We will talk about that. Some big were heading toward zero. 22 minutes into the session. Gains across the board. Ftse 100 is up something to do with china apparently. We will talk about after the break. Jonathan good morning and welcome back to on the will. on the move. Vassilis karamis i am jonathan ferro. Gains across the board. Stoxx 600 had the worst week last week for the year. We combat. Come back. Ibex up by 0. 4 . Europe is old looking looking for a lift. Rrr rating cut. It was aggressive. To the fx market. The aussie dollar is up. Australia, there being export destination is china. Their hunger for commodities improve. That means the exports improve as well. For me, the big important story taking place in the bond market. Over the past week or so of what is about to happen in europe. Greek and yields go higher. To get that, look at 0. 0. At one point, we were even lower. Money going to the core. No surprise, you might see. The bond rally is another. For me, the spread that is starting to lower a little bit. 1. 4 5 on the 10 year in italy. A tough day for spanish and italian bonds on thursday. After the break, we will talk about that. Rbs with extreme uncertainty. Is in time for greece to get back to work . We will talk about the bond market when on the move returns. Jonathan good morning and welcome back to bloomberg. Com. On the move. I am jonathan ferro. A picture of the markets. Equity markets across. The dax up. Here in london, the ftse 100 add in and stress 60 points. Added an extra 60 points. Gains across of the board. Some stock stories out of there. Lets get to bill with caroline hyde. Carolina abide a hint of lets get to them with caroline hyde. Caroline a hint of m a. Buying base units. Slightly bigger price tag than expected. People really liking the way tel enet is moving and the billionaire malone is moving. Getting that the cable. 3. 8 coming off of 5 higher than we saw a earlier. M a driving some stocks on the higher side. Driving down is a key project, petrofac. The reason . A particular cost they keep delaying on. Now it is over running to the tune of excess of 200 million. The costs keep on climate because they have to complete quicker than they want to. June is when they said they will have the bulk of the work done. The reason it has been delayed is poor weather. And industrial has pleaded the project under the crunch. They boosted it last year to the tone of 230 million and now once again 190 million in excess. They are determined they said take get it done in time and that is why they are having this. It is taking petrofac stocks down a it is the worst performing on the ftse 100. Jonathan to fair are the stock stories free lets talk bond. Only one trend in europe. Maturity after maturity in the eurozone turn negative. Rbs said the german 10 year will be next. We are joined by an analyst from rbs. Great to have you. Counting down to zero. You guys think it is way beyond that. 0. 3 . Guest the biggest is in europe, there are no supply bus because the government is not spending. The markets are shrinking and the fastestgrowing asset class is negative pond emails and we have around 42 percent, 43 with a negative yield. They provide a few other things and there is no supply. You got it is huge compression down. So far, it has been qe in could be that he yields go more negative because the flight to safety with degrees and the volatility. Jonathan thats what i want to talk to about alberto. Inflation fueled to keep it to lower. I want to ask you about the next leg, a real risk aversion and if we should look at germany, france differently and spain and italy, something we have not done in a while. Alberto gallo theres been a lotto buying in the periphery. The picture remains solid for the grease. In as the next few weeks, we will have volatility. The picture remains solid for greece. In the next few weeks, we well volatility. We may not have solution. Christine lagarde and mario draghi were confident. They need to bring reforms to four wishon is what lagarde said. We have very little time. There are payments at the end of the month and pinches and wages and a payment in may for the imf. They may run out of cash. It it does not mean they are exiting. It is a big difference. Missing a payment and they have time to sort themselves out. It is not an exit. The liquidity will be given to the greek banks. We are looking at a cash flow shortfall over the next few weeks. Hedging our along the bond trades and the next few weeks. Jonathan lets say the big d word and they default and do something unprecedented for a country when it comes to paying back the imf. It does not necessarily mean a grexit but could they be forced out of the eurozone . Alberto gallo i do not think so. It is a long process. The creditors do not really want to deal with the current government. The Current Governor government has burned some goodwill they have. If there was a missed payment in may, you have a grace period and probably a referendum during this grace period and that would be the key decisive moment to understand if they want to stay in the euro or not. I think they want to. The vast majority wants to stay in europe. They were not have amended to exit. Even with a default, they stay the euro. Jonathan lets talk about the short term. Thursday, friday dominated by germany yields in higher spanish and itali