We are live in athens. We are getting some breaking news from germany. They are breaking in with an expected. In terms of assessment, we are expecting 110, in terms of business climate. We are also trying to deal with the greek question. Overall, Current Assessment is much better than expected for the month of january. The coalition for greece and a challenge for europe. The vote leaves in two seats with a mandate to build a coalition dedicated to ending austerity. Guy johnson is on the ground. This is a historical vote. It is. The vote has gone as anticipated. He did a little better than anticipated. This morning, in athens, there is a conversation taking place between them and the independent greeks. Nobody saw this as a central case. They are towards the righthand side of the political fringe and antiausterity and very much taking the line that they want to see a hard negotiation with the troika. That is the reason the markets are down. A fascinating story is emerging. Maybe not the one that most had planned for. Can they form a government . They are talking about wednesday being the date we get this done. It will be an intense few hours before we get there. Meetings will take place. They are talking to the party that got into power. If that is the story we end up with, the signal will be more relaxed. Prepared to compromise and two may be negotiated and take a more sophisticated line as some would say, with the negotiations. A key 24 hours is taking place and it will be interesting to see if he decides that he can go alone. He could go alone. He got very close and may decide that is the route he wants to go. This has been an antiausterity vote. How bad are conditions on the ground . The conditions are bad and greece has really suffered over the last five years and they are making it clear the number one priority is to get them back into jobs and it has been tough for the greek people. What we saw is a reflection and the need for change. The question is, can they make that economically work . The passwords are really difficult to deal with. You could see a real reversal of the on the employment shrug sure when it comes to the state and to change the tax story, as well. Lets get the review. She joins us now. Good morning to you. A little bit of a surprise for independent greece. Nobody expected them. Clearly, if he does not get a full majority, they asked if he is going to in gauge. He says that it is very much in favor of what is going on and in favor of the troika. They want to make it look at her and do not want to change things. They will be talking with the natural left party the extreme left and the real radical left. What message is he sending if he does that . He is setting a serious message. The economy is first in the ideology is second. There is a strong point of view about the nation and how they are rather rightwing. Right, the fringes start to meet. We will continue to exist if there is the possibility for us to have a Sustainable Way of surviving economically. We have a marriage of most convenience. We get to have a Sustainable Way of getting through and you will see the ideologies fighting with each other. That is further down the road. Everybody i talked to i just came from data posts davos. They expected him to make a uturn. Once i am not expecting it. Imagine you are 40 years old and have never thought that he would become the Prime Minister of the country. He was leading a party. A coalition of voices that would enter into parliament with 34 . Now, he finally has the golden opportunity to prove himself and it is true that there has been leaders in 2012 and they voted in the same way. He has promised the exact same thing around what has been promised and that he would completely go and change everything. No one was talking to him and everybody is saying they do not want to talk to him. We forgot that he had this as a campaign and he continues with the commission. There is a consistency with the voting and, i think, what does he have to lose . He will go back to the 3 . Here is the possibility for him to make something. But it is a big day. You used to run this place and have before. They put it into ruins. Precisely. From my experience, as an economist and 34 countries under crisis. There is no way a country can get out of the ruins by the same party that put it in the ruins. We tried to prove there would be a time this happened and it did not. You look at the economic policies he has suggested. Do you think they are fully formed . I am not sure if they are. The Previous Party was definitely not. It was literally like driving on a oneway road that did not have the ends to it and we were not going anywhere. May be, in macroeconomic terms, things look better. We talking about people not having any savings. It is interesting to talk to people like myself. The greeks were taxed for properties in greece and the majority of the greeks are almost as many in greece and have been doing capital inflow to pay for the taxes. It is interesting to see that we have taxed savings. He talked about it last night. You look at the economics and we are in a situation where the message has been sent and it is clear that he will stick to the line. It also says are those two ideas reconcilable . There is no way to get out unless there is a big call from the people. Technically we can default within the euro. We can default within the euro. It is important to notice that the European Union is imploding and greece is a canary in the coal mine. We need to learn from what is happening in the country. The austerity measures are good. They are not appropriate when you have a crisis that is related to the productive model and the model is backwards. You have to reform labor markets and deregulate all of the markets to allow for innovation and for freedom of more investment. All of our lungs youngsters in greece innovate. How good is that further country or europe . Maybe we can change that. The ceo of group thought for action. Interesting thoughts. I have to say. Maybe well see action. I will be back. Act to you. We will see if he governs as a pragmatist. That brings us to the twitter question. Is this the beginning of the end of austerity in europe . Lets go from greece to germany. Lets get straight to hans nichols. For the moment, they are playing hardball. It is remarkably consistent. The agreement reached with greece is valid. Members of the parliament basically repeated that. A few minutes ago, someone on local broadcast the papers had something similar. Here is what he had to say to the public broadcaster. I believe it is in the interest of the greek government to do what is necessary to tackle structural problems. That is a top tanker channeling the public view on this. The public opposes restructuring and that will likely be on the table today. The finance minister meets and the minister of france has hinted that he favors restructuring. Most seem to be on the same page. No restructuring and no haircut. The very latest. It is a little bit like a chess game. Third timess the charm. We are back with the details of the developing story. We are back in greece. What is on the agenda . Plenty to come. We are watching the political situation very carefully and speaking to a leader from the party. Will they be part of the government . We will be speaking to the chamber of commerce. All of that is coming up shortly. Welcome back. Lets get back to the top story. The greek elections. The antiausterity has won. What does this mean for the eurozone . What welcome michael. With us is guy johnson on the ground in athens. Great to have you on the program. Thank you for coming in. Well have to wait to see if he becomes more pragmatic or if the fighting talks continue. Given that we do not know if the talks will continue, how certain are you. It is a different stage than the first crisis of stop in the first crisis, the assumption was , who is the second country to go into the program. Now, the country has shown that. I do not think the automatic contagion is here and you see the Market Reaction this morning. It has not grown weaker stop european fixed income and others have gone up and i think the market is going to correctly state the crisis in the situation for a lot of uncertainty in the country and because of the action and the vote with the other countries that are better protected than before. Michael, let me jump in and talk a little bit about that and explore issues. It is interesting that you talk about the fact that the contagion may not be a problem. Look at the political story. It is interesting to sit in the square and see a lot of spanish and italians. The have really alive themselves closely. In spain, they are running number one in the electoral story. If they can make it work in athens and greece, that may change the dynamic significantly. My point would be that i hope that it will work and we will have a good situation for the economy and for the people. At the moment, i really believe that, because of the financing needs of the banks and the official sector that comes up this year that a good solution can only be achieved in a cooperative fashion by european institutions. I think a good outcome would not set a negative precedent for any country. I cannot see going it alone to be. Effective. I am not worried about the political spillover. You think he will be more pragmatic, rather than rebellious and radical. Do think that germany and the rest of europe will have to give in . I think both sides will make a step towards each other and that from my expected perspective, it is more on the greece side and it will have to be a step for greece. Give us a sense of how you are changing your portfolio. You did not think this would happen. So, how does it change the way you view your investments . We have different teams and we argue that we believe that it should come and it is an interesting side note. I am a german citizen and germans are known to be critical. I am quite happy that we have shown the world that we have all of the modern tools that other banks have and you could argue that we are a bit late. I would argue it is important that we havent and that we have it and it will help risk premiums to stay controlled for the next crisis. It is important. Is there a possibility the authorities in europe underestimated the potential for greece to cause trouble . Everybody thinks he will perform a uturn. We may have mechanisms in place to make sure we do not get a major liquidity crisis in the rest of the eurozone. If you think about the way the political their deuce are developing this morning, is there a danger . Is the danger going up . I would be a huge investor and get a bit more nervous. I think that it has not played out the way it expected. There may be an outright majority. Maybe the market is expected with a more moderate coalition. Maybe there are some rumors and if you are an investor and you see the markets you should be a little bit more nervous. I think, if you are a european investor, you look at the loan and the long end. They are up in price and down. We are concerned. Does the negative yield environment change anything . The negative yield environment is a big problem for many of our clients. Investors are in low risks and i think it means that you have to become more active for opportunities and finding solutions. There are so many things happening in the market and, speaking as an active manager, those are opportunities to make a difference. Thank you so much. We are back in a couple of minutes. Welcome back to the polls. Lets have a quick look at what the Stock Exchange is doing. Welcome back to the pulse. Were just getting some breaking news out of athens. We are hearing from the party leader of the and dependent greek party syriza. This is the outcome that nobody expected during this is going to rattle a lot of peoples nerves there in the leader of the independent greeks was just on Great Television talking about the announcement we made it. The two martys parties will form a Coalition Government. This is the left field outcome but nobody was talking about. There were people discussing it last night. People were throwing around the idea. Actually, the world has got this wrong. This was always a definite possibility. This was a consistent outcome that was being delivered as a message. Weve heard from the independent greeks. There was a bit of a surprise that they got in. The meeting that took place and just finished up a few minutes ago they are making comments. I think this is going to surprise a lot of people that this is the outcome we are ending up with her people are going to be very nervous about what this is ultimately going to deliver for greece. This sends a strong message to the eurogroup that greece is going to negotiate very hard and deliver a tough message from athens to brussels and berlin. This is a country that wants to negotiate an incredibly strong. That was the message we got last night. We have had five years. We havent made any progress in were going to change the narrative area we have not seen a Different Party since 1974. This coalition cements the idea that Alexis Tsipras is not going to perform the uturn people were talking about. There is just governing as a pragmatist. This puts this into question. The independent greeks are antia lot. They are centerright. They are still basically on the right. How do these parties coexist . The pulse its its going to be fascinating to see that. Alexis tsipras does not need the independent greeks that much. There has been summit meeting of minds to make this happen. One is from the left and one is from the right. At some point, the political spectrum meets again and maybe they can find some common ground. People will look at those nervously. How stable this will ultimately be . How long will this Coalition Last . The outcome that nobody expected on the outside. People here are telling me its not quite such a big surprise. Thank you so much, guy johnson. We will have more. We are going to take a quick rate. We will be back live in athens to discuss what this coalition means for the European Union and for germany. Good morning. Welcome back. It you are watching the pulse. We are live from athens. The political temperature has been rising the last few minutes. Syriza and the independent greeks are forming a Coalition Government. Very few people expected this as a possible outcome. Very few people thought the and dependent would get into parliament. What are the applications . The Business Community will be stretching its head as well trying to figure out what this means for their company and for their country. Lets to walk talk to one of those figures in the greek Business Community. He is the chairman and ceo of one of the Biggest Companies in greece. People were expecting a more moderate start from syriza. Maybe we are not going to get that . There is always a drama in greek elections. I remember many elections ago that is greek drama. It is not the reality. Greece has deep roots in democracy. There is no danger. This is more aristophanes . A lot of people in the outside world will be surprised that this is the coalition forming. It sending a very clear message that we are going to negotiate hard. There is no doubt it will be a hard negotiation. The outgoing government tried to do a good job. They may be did not complete the reforms that they should have undertaken. On the other hand, this came at a big social cost. This will have a political price. What would you like to see happen now with the policies coming out of this new government . What do you need to hear . Lets look at what happened to the elections. Two things, we have had a calm preelection. And we did not have any issues of Foreign Policy raised during this election. This is the first time it. Almost all parties agree on the main lines of Foreign Policy nato, the European Union. More than 80 of the voters have wanted to stay in the euro. That is a very clear message to Alexis Tsipras and it has to be taken seriously into a cap and there are very few greeks who want out of the euro. A relatively new party where the leader has no aspirations to become Prime Minister. We have broken a time in which to parties ruled. This is a very unstable time. There is always danger in politics. Lets look at the Positive Side of things. Forget the greek,. The Positive Side is there is new government and a new kind of strength in europe. There is opposition of proeuropean, centerright opposition. If we have a stable government here and we have a four year term that gives it political stability, that may be followed by a proeuropean rightwing it government. That means eight years of political stability. Greece is going to be a leader in the next few years. Why not look at the positive scenario . He wants to fix the unemployment story. He wants to get people back to work or in what the you need to get from the government in terms of policy . Is it reducing the burden of employing people . What do you need to get in order to fulfill that ambition of adding people back to work . You need political stability. You have direct investment. Public investment, there is no money to do it. All thats left is political stability. That is relatively cheap and it can happen. The eurogroup has said that when greece gets established with the budget, we will talk about that. Debt. Lets talk a little bit about this. A restructuring would tell a lot. If he can deliver that, is that enough to keep the political stability story there . He has formed a government of two parties that want to negotiate quite hard. When anything short of a haircut satisfy coalition and create the political stability you are talking about . A haircut can mean many things. It can be longterm interest rates. It can be a grace. What is a haircut . Its got to be a logical, reasonable compromise for everybody. The greeks themselves dont want to leave the euro. You talked to the banking community. One thing that does seem to make people nervous is the outflow from the Banking System. When you talk about your colleagues in the banking industry, is this where the story could unravel . Could there be a liquidity crisis . That is up to the new government. There is nothing to worry about. The Banking System is solid. Its up to the ecb