Here are the top stories we are watching head of the belt goldman sachs, will Morgan Stanley reported more in the business than morris and more than five years. Posting revenue increases of more than 20 in Equities Trading in the First Quarter while many of the rivals reported declines of 1 . General electrics and talks to sell the biggest lending operation to wells fargo according to dow jones. Businesses business is worth 74 billion. The spokesperson declined to comment on the dow jones report. David einhorn says it rely capital took new positions and Chicago Bridge and iron company, General Motors and air cap. The firm exited short bet against a play and safeway semiconductors. Less than an hour until the close of trading. Right to the breaking news desk where scarlet fu is looking at the action. It is like a whiplash from friday. 214 point rebound from 280 point find friday. The dow and s p 500, the best day in a month. The nasdaq gaining the most with an advance of 1. 25 . China helped to cause the globally Global Equity selloff friday. Over the weekend in removing some of the sting from the decision by cutting the amount of cash thanks need to cut aside set aside from the reserve. The fx side recovering a bit from the 4. 2 percent drop friday. Shanghai stocks did not get much of a list. They close down trimming the year to date gain from 30 . I know you will be discussing greece shortly so i wanted to give you a snapshot. John 1 before the meeting. That will determine when they will pay the bill and pay the workers. The euro ending at 40 rally that took it from 105 to 108. The euro ending of fourday rally. Seizing Public Sector funds to avoid a default. The Prime Minister ordering local government to move funds to the Central Banks scraping together 2 billion euros. The country rambling to pay salaries and Pension Funds by the end of the month. Just how bad can it get . Joining me to discuss is bill rhodes. He is a former vice chairman at citigroup and author of the b ook banker to the world. Also joining us jacob kierkegaard at the Peterson Institute of international economics. How much breathing room does this 2 billion euros greece is scraping together really give them . It buys them a little time but not much was done between the financing and i am a. I think i do not see a lot of breaking before the meeting at the end of the week. They have to put themselves with a plan in front of the imf and trigger and the old tri oika for their own good. My concern is the banking system. They continue to lose deposits. The European Central bank has a little more leeway to get support. This cannot go on forever. This is so we do not have another cyprus situation. Olivia i have a chart for everyone that paying the picture greece and one ugly picture. Capital flows and greece. Unbelievable decline over the past six months. 62 billion euros running out of the country. Are we looking at capital controlled you co . I think whatever the great government does now to escalate the situation, whether they actually decide to postpone or miss a payment to the imf or perhaps cause the referendum or new election those types of things in those situations the level of tension is now so high we will look at capital control and bank holiday and other things that essentially in my opinion will cause a deep recession and again in the greek economy. Olivia does that wind up becoming an accidental default . We are already seeing default by the greek government against its own suppliers. We should also be clear the new law you talked about about porting local government cash is essentially a backdoor significant fiscal tightening. It will have significant implications of the greek private sector. The Multiplier Effect on the fund is very high. Default is already happening against its own people. The question is if it will happen against the official creditors. There is no doubt the downturn on the economy will be dramatic. Oolivia the finance minister meeting with the lawyer who helped to guide the default. He was meeting with several lawyers in washington, one of which i talked with. The scenario from my colleague at the Peterson Institute is unfortunately where things are moving, if they cannot get themselves together and put a plan on the table. I was with senior officials from brussels. He told me patience is running out, and certainly is at the imf. So they really need to decide what they will do on the Structural Reforms and have to get on building on significantly because the government is not meeting obligations olivia domestically. In the meantime, what point is it too mucholivia in the meantime, what is the situation domestically the eurozone does not want to see a greek exit. All of the things were talking about they say greece is more important. They do not want to see a greek exit, but you need to to tango so too is the core whatever you want to say to get this done. All we have is a lot of speeches and discussions and interviews but nothing like this is a plan and this is when we will implement it over what amount of time. Olivia going back to the news of the day, how unusual is that for greece to have taken this 2 billion euro worth of funds and the inherent risk as they move forward . First of all, i think we need to question whether it is to billion. I think it could be a lot less. I think it is operably what the government help for. This is highly unusual. This will hamper local governments and other state owned enterprises in paying their bills to their own supplier. As i said earlier, this is a significant backdoor fiscal tightening the government is implementing and one that is extraordinarily damaging to the greek economy. This will buy them a matter of weeks. Olivia it really is scraping the bottom of the barrel. Matter of weeks pretty dismal sounding. Coming up next, China Central bank could be taking a page from europes financial crisis handle to free up more credit. We will talk about the strategy after the break. Olivia here are the top stories we are watching before the world has vastly under underestimated the size and scope of chinas megacity. The Organization Says there are 15 china a best chinese megacities. Kinds of becoming chinas first Real Estate Company to default on the dollars. It is owed to onshore and offshore lenders. It is based in the Southern Area of china. The money major who correctly predicted the decision to cut many money manager said it is time to Pay Attention to asian stocks. He told betty liu parts of asia are a great place to be. Maybe, but china is getting desperate to stimulate the economy. Free up two point billion dollars to free up liquidity into the economy. Meanwhile, Overall Economic growth is slipping. Real estate firm tracks real time conditions and the market and bill rhodes. News over the weekend blew my mind china cutting the reserve ratio by 1 really trying to get banks to loan more money. What is this is significant of the 1 . Was not very significant. You cannot simulate when things are not lending to the right people and firms do not want to borrow. At the end of the day you are freeing up a bunch of liquidity. Extraordinary amounts of look at 80 in the system. Firms do not want it. They are not borrowing or spending. Olivia on the flipside, it did help to offset the capital outflows that weve seen in china in the first order which totaled or hundred 30 billion. Had to do something there. Look at the steep slide and capital outflows 2015. Since november they have dropped Interest Rates twice. That is not going to be enough if they want to stimulate. I think what we will see is a couple of things. Number one, what we see in the general economy is the bubble we saw in property real estate and construction is starting to burst or has been bursting. If you take a look at the gdp of china that is 20 and 50 15 and 20 of the global economy. The question is what will happen there . Shadow banking and all of the issues are coming to the floor. I think what you are going to see the debt and provinces will build up since 2008. I think we are to a new normal will growth will not exceed 7 . I do not think it will reach 7 . This year will be more like 6. 5 . A imf says 6. 8. At the same time they are trying to stimulate the economy they promised to take measures longerterm measures like freeing up deposit rates and putting in deposit insurance. All of this is happening at the same time. Olivia the issue that leave and brought up is no matter what they do, they still have to create demand. Isnt that part of the problem . Companies dealing with a lot of debt and overcapacity. Looking at loans demand there. The think people are getting most wrong overall is the talk of gdp growth which is not a real number to start with. Talk about gdp growth target. The central bank, government is not stimulating to hit the target. What is actually happening is an economy that is trying to fight off potential for deflation. They are doing just enough to be able to push back against and. They are not going to japan or europe route. They are doing just enough to push back against problematic factors. Olivia what kind of factors will we see . Will we see new policies . The wall street journal saying we may be able to see banks take loans and turn them to the central bank and get longterm loans . You are shifting around bank of ireland sheets. You have some terrible debt that is not worth anything right now. What the Central Government is saying is that instead of going to buy it out rate, they will offer it as collateral to try to spur lending. That sounds great, but they have to avoid taking these types of bonds as far as having been be the entire thing that commercial banks are focusing on at any given time. The reality is if firms do not want to lend or borrow, you have a problem. Olivia great conversation. A lot to talk about. B lynn miller with the chinese beige book. Coming up next a crisis and the mediterranean. Struggling to deal with the surge of refugees trying to make it to shore onetimes with fatal results. Sometimes with fatal results. Olivia european officials are holding an emergency summit this theres a to address the crisis in the mediterranean. This after a weekend of debate over how to handle the attempts of migrants to move into europe. 700 legal work people were in a boat that sank off the coast this weekend. Joining me to discuss the Economic Impact of this is bill rhodes. And jacob kierkegaard, senior fellow at the Peterson Institute of international economics. Talk about the humanitarian crisis to this. If we wind up seeing hundreds and deaths this weekend looking at 1600 so far just this year. It is accelerating because it is not only a push from libya but people from Subsaharan Africa moving through lydia because borders are poorest. The countries are in the midst of a civil war and there is no central authority. That is the closest to europe. It is right across the street from italy. I think you have to work out something about what you can do at the point of the perch or to get people to try to stabilize the situation. Longerterm they need some sort of a program like we are working on in this country with the situation between mexico and Central America going over the rio grande of the United States. It is a very difficult problem. The europeans have not agreed on how to do it. Poor italy is stuck with this. They do not have the resources to take all of the refugees. Olivia you study European Economic and demographic. This has been going on for a while. Why does it feel so much worse now, or is it . I do not think there is any doubt that it is worse for the reasons mentioned. It is worse than it used to be to take off from the shores of lydia because there is no government today in libya. It really puts the european authorities and italian authorities in the pet of the bit of a pickle because who was your partner and what can you do about this if you have no government in libya. I think what we will see is probably only going to be measures to increase european not just italian but european patrolling. Perhaps some surgical strikes against these types of groups in libya. It is very difficult to try to do something more fundamental without going in and trying to mediate in the libyan civil war which i do not think there is any appetite for. Olivia it seems like a much more aggressive policy from europe. I dont know about that, but i think jacob is absolutely right. No doubt that is the easiest thing they can do. Libya has been an open sore for the past couple of years. Europe in the United States have made a mess of olivia, no doubt about it. Egyptians are involved because of the excursions over the egyptian border. The real solution, if there is one, to get a stable government in libya. Olivia what happens to the migrants who make it to europe . What is like for like life like for them . The European Union has a lot of authority, but in terms of asylumseeking seekers and refugees, it is still largely National Rules that apply even though there are no internal border patrols in large parts of the European Union. Many of the refugees that come to italy will almost certainly migrate on to other european countries. Germany scandinavian etc. That is why i believe one of the crisis that will come out of this in the long run is really the eu needs to move towards more common asylum and refugees apologies so there is not a big refugee p helices. It is really about National Government trending over sovereignty. Olivia we have to leave it there. Thank you for joining me. Bill rhodes, always a pleasure. Coming up next, comcast deal for time warner. Alix welcome to street smart. I am alix steel. The bank is expanding in the u. S. , even as rbs and other european banks reduce u. S. Presence. John malone and buying the first Wireless Company in europe, a move that leaves the billionaire boys to shake up the business. Saying it agreed to by the number three wireless carrier. The purchase open the possibility between liberty and vodafone, the worlds number two carrier by customers. Groupon selling a controlling stake in ecommerce. Kkr and Hong Kongbased equity partners. The 44 stake sold for 430 million. Make brick to gain 230 million on a pretax basis. 30 minutes until the close of trading. Scarlet fu looking at the movers on this rally date. Groupon will use the proceeds of the stake sale on a buyback program. Stocks taking as much as four point 7 in the left part of the chart. It paired the advance, which has been the story for stocks. For the year it is little changed. Moving on ibm, the biggest contributor to the Dow Jones Industrial average trading at a six five before reports of earnings after the close. X acting 2. 80 up from 2. 54 last year. Looking for revenue to drop 13 . Rbc Capital Markets says to look for firstquarter revenue and eps to miss estimates because of the strong headwinds, the negative impact of the stronger dollar. I wanted to bring your attention to google. There is a great story from ashlee vance who reported google negotiated to buy tesla and early 2013 four 6 billion. The stock is up not necessarily on the news that it wanted to bring you inside the bloomberg terminal because it is of fascinating example of what they spent their money on. Overall it has made 243 acquisitions worth 31 billion dollars. If you look at the biggest acquisitions it has ever made, Motorola Mobility in 2011. The next guest back in 2007. Here is a big one 2014 four 2. 3 billion. If you look at the deals google has made it does not typically bind the field. It bought 58 Company Since early 2013. Giving you a sense of how quickly it uses cash. Google has 67 billion in cash and equivalents. Plenty of firepower if it wanted to ever make a bid for Something Like tesla. Alix comcast proposal to merge with time warner will meet this week to discuss. The drg the doj likely to block the deal. Joining me to discuss the potential fallout is alex sherman and partner at sullivan and cromwell. Thank you. The interesting saga. We talked on friday and use of the followthrough is chaos across the cable industry. Who may come in and pick up the pieces gekko . S . I do not think there is another candidate. The only other option is Time Warner Cable goes on on their own and tries to make a go of it as an independent company or charter comes in as the largest shareholder. So the liberty back charter comes in and tries to negotiate a deal. For people that have followed this charter originally put Time Warner Cable of or grabs and made a hostile bid after they could not work out a friendly deal. The interesting thing is can they reach of friendly deal since they were not able to back in late 2013 and early 2014 . Alix in the meantime, what can they do . I think that is what is going to happen. Ultimately the argument they will make is you have satellite you have the Telephone Companies like verizon and fires and at t. So there is a lot of competition in the space. I think what they will do is come forward with a package that is the best teachers. It is going to be maybe assurances about providing services in rural areas, underserved areas and things of that sort. A combination of things that will give them through the doj. The doj says we will take you through court, it brings the parties to the table. I think at the end of the day t