We are live from bloombergs European Headquarters. We are just getting some breaking news in terms of the euro pmi. It climbs to 51. German number, a little editor, french number, little weaker. The focus in the eurozone remains greece. The new finance minister began the European Tour with paris yesterday, seeking support. In a News Conference with his french counterpart, he suggested that his country is addicted to loans and needs to break its dependence. For more, lets go to hans nichols in berlin. Tell us more about what he had to say yesterday. He clearly wants to keep open that finance window through the ecb. That is so crucial. He indicated that withdrawal is going to be a difficult process. Have a listen. We have resembled a drug addict craving the next dose. Do i believe that we should be taking another punch of loans . No. It is not that we dont need the money, we are desperate because of certain commitments and liabilities that we have. He was speaking in paris yesterday, mr. Varoufakis. He got some support from the finance minister in france, also some nice words from mr. Obama in the states. If they dont stick with the euimf a about, which ends at the end of february, they wont be able to access the ecb for funds beside that. They wont be able to pay back what they owed the imf, which is due next month. There are a lot of ifs, a lot of conditionalitys attached to the financing component of this. In terms of the larger restructuring, they did indicate a willingness to work with greece and find some common ground. France will make it easier. France will always dobe there to find a solution. We have this common believe that greece is in the euro and will stay in the euro. We could have a little good copbad cop going on, with varoufakis being the bad cop. They made some conciliatory comments. And even president obama getting involved. What has he been talking about . Run us through what has been happening stateside. Obamas comments are interesting. They are his first in length after the election. He is echoing what syriza was saying during the election. You cannot grow with these crippling crippling sanctions that are in place not sanctions, excuse me. In some ways, he gets to leave a symbolic sign that could undermine merkels ability to isolate greece. Hans, thank you so much. Now, while mr. Varoufakis is touring europe, greeces Prime Minister is also making diplomatic overtures. Alexis tsipras issued a statement to bloomberg, saying greece will stick by its obligations. For more, we are joined by marcus from athens. Weve got a lot of rhetoric from athens. Is the new government realizing the need for compromises . Are we getting the same message from mr. Tsipras and mr. Varoufakis . What is going on . What is the commentary that we should be reading . Theres certainly a feeling in the greek government, a sense that they felt the need to calm things down a little bit. It is worth bearing in mind that the rhetoric that was coming out last week did scare markets. It was by all of ministers addressing new portfolios but very much speaking offthecuff at the beginning of their new jobs. Perhaps there is a sense that syriza as a Political Party has always been a party that is hard to exert Central Control over. A lot of this wasnt coming from tsipras himself. After the meeting on friday, which was not a rip roaring success diplomatically, there was probably a feeling among Prime Ministers that they need to calm things down a little bit. Hence the statements over the weekend. From the initial Market Reaction this morning with greek markets up a little bit, at least in the shortterm, it seems to be working. Just bringing down the tone a little bit. How big a bearing will the shortterm liquidity situation have on the governments negotiations . Greece faces a cash crunch in march. Varoufakis has said that he does not want to extend the current bailout agreement. He doesnt want new loans. He just wants to bring together a new agreement. Of course, it is not clear how we get over this come. Theres some imf debt that needs to be repaid. The whole ecb situation is not just in terms of the direct refinancing operation but also emergency liquidity which also needs the ecb seal of approval. The problem there is that if the government tries to meet shortterm funding commitments this is something the ecb is not going to be very happy with. It is a very drastic decision to cut off liquidity. They will want some political guidance. Whether or not the bailout is extended beyond february, some kind of agreement needs to be reached with the creditors on how this is going to be dealt with next month. We look forward to hearing from mrs. Merkel. Thank you very much indeed. For more news on the greek story, go to Bloomberg Business at bloomberg. Com. Check out the bloomberg review piece in which he says europe should call greeces bluff. That is one you have to read. It is a great read, probably the top read uptodate. Lets turn to top corporate stories. Ryanair listed its fullyear profit outlook. They jumped as also feel prices slid. Kari lundgren joins us with the latest. Very strong numbers in a traditionally weak period. Does that mean customer friendly ryanair is working . Something seems to be happening. This is the fifth profit of great in fiscal year 2015. This time last year, they were doing profit warnings. Theyve done a lot over the last year in terms of the new website. They recently rolled out a u. S. Focus website. They are continuing to do changes. Bank charges, friendlier attitude, hugging puppies and all that sort of thing. You can see that not only in the passenger numbers which you expect given that they are increasing capacity, but the load factor is at 88 . Really impressive numbers. Hugging puppies. I would love to see that onscreen. He would do it for you. [laughter] load factors are in the 80s. The hedges are in the 90s. It was an interesting comment from ryanair today. They said they are 90 hedged so you might see players that are less hedged being in a better position in what this could lead to. It sort of seems that they are suggesting that could be a price war here. Ryanair tends to be strong in these positions. They are not afraid of lowering fares. They are saying, we will pass on any drop in fuel prices to passengers. You can see that rhetoric playing in and getting customers more demanding to those airlines that are charging passengers for fuel. Do we have any update on aer lingus . Ryanair has a stake in aer lingus and iag is trying to buy aer lingus. They were cautious on that. They said they had not received a formal offer. Last week, we saw on the back of qatar buying a stake in iag, we saw more coming out of ireland more coming from the Irish Government about that deal. It seems like the sentiment might be turning against it. I think ryanair will wait until they see what the offer is. Show me the money. That is where they stand at this point. Kari lundgren on the latest from ryanair. What else is on our radar . The ukrainian president has called for a truce with prorussian rebels in the eastern part of the country after peace talks broke down and violence escalated. A statement from the website called for an unconditional and immediate ceasefire as the conflict is escalating. The number of civilian casualties is growing. The statement came after poroshenko spoke with Angela Merkel and the french president yesterday. Back in the spotlight today the former imf managing director and former french president ial hopeful goes on trial. He is one of 14 men and women accused in an International Prosecution ring. The trial is expected to last at least two weeks. Rupert murdoch has taken to twitter once again. He shared his thoughts on the democratic field for next years president ial election, saying joe biden actively preparing to run against hillary. Murdoch didnt share any details. John kerry, the current secretary of state, has ruled out another president ial run. From twitter to twitter, our twitter question. See how many times i said twitter . Would you fly ryanair for business . That is the question of today. You can tweet us. Have you changed your views . That would be the interesting one. Let us know. We would be delighted to hear from you. Coming up, can greece kick its debt addiction . We will have more with oxford economics, next. 15 minutes past the hour. Welcome back. You are watching the pulse. We are streaming on the allnew bloomberg. Com. Check it out. Restoreth europe. Prime minister alexis cigarettes Alexis Tsipras and Yanis Varoufakis due to arrive in downing street. We are joined by gabriel sterne. Gabriel, thank you so much for joining us. What does mr. Varoufakis need to do . Last week was a fiasco on the market. They steam seem to have tempered that stance. Clear message to investors should be what . He has a dilemma. He is driving his own domestic constituency which is saying enough is enough. There was a nice quote he gate over the weekend. Then, there is keeping the whole thing afloat with his community of finance ministers who he needs to keep greece in the eurozone. Here is a guy who is playing brinksmanship. It is the first time we are seeing profit brinksmanship in the oil crisis. It will be interesting to see how it pans out. Where do the weak points lie . People are looking at the debt restructuring story. You get the sense that there are a few problems. The weak points are his finance ministers that want to give what he wants that is quite a week negotiating position. What does he want . Ultimately, i think what the negotiation comes about is what primary fiscal deficit can be agreed between both sides. Im guessing that he will bid for surplus. He will be going for 1. 5 . The imf has projected 4. 5 . That is a colossal difference. In some sense, a lot of greek debt is tied to floating rate interest rates. That has come down a lot. I would imagine the deterioration that has gone on around the election will more or less white that leeway out. I think it is difficult negotiations. They want four months to do it. I dont think they will get that because of the state of greek banks. If you want a fiscally neutral budget, how big a difference would that make to the Greek Economy . What is fiscally neutral . If i were a greek finance minister, i would say primary balance is neutral. That is not on the table because it would mean a rising debt to gdp ratio. Long ago, the imf you can go over 120 , you can have rising debt. In the near term, if they can find a way of not worrying about getting bigger and they have a neutral budget, do you think that would be enough to keep the greeks happy . I think that would be enough to pique the greeks happy, but wouldnt be enough to keep the germans happy. But what is programmed is a 4 primary surplus. They wont except that. Gabriel, do you think the current government in greece misunderstands europe . When he asks for a summit to talk about issues, this is what the eurogroup is for. Are they playing because they want to be seen much more radical than they are, so it is a negotiating tactic, or do you think there is a difference between how europe sees themselves and what these guys want . That is an interesting issue. Everybody thought before the election that they will come they are all talk. Ever since, they are saying weve had enough of this. To be fair, it is probably the Worst Program of all time. The imf and the troika did revise down gdp projections. They have got a point in some aspects. In other aspects, they are proposing some very backward policies which wont necessarily be good for output in the long run. You can pick things out that you like and dont like from both sides of the debate. Theres a lot of opportunity here. One of them seems to have landed in draghis lap. How does he with the issue of the greek banks . How is he going to finance or provide liquidity for the greek banks when he doesnt have clarity on his political cover and the longterm story of greeces tenure within the eurozone . It must be tremendously difficult for him. Anybody with exposure to greek banks are probably the ones that are the catalysts to see if they can get this form of leeway to reach negotiations. In the end, they will reach an agreement, but it might not be in time. The ecb has been unbelievably creative in ireland, greece, and cyprus. They can kind of do what they want. But it just might not come in time. I think in cyprus, it was less than three weeks between the election of a centerright president and the banks being closed. If we are thinking about the left field concerns, it could be less. Are currency controls part of that . If it got to the point where the ecb said, enough is enough we dont want it on our Balance Sheet then you would see something very similar where you get capital controls restrictions on withdrawals. At that point, it really gets interesting. I think you would find that greek people dont want to exit. Youve got a very ugly situation. Not just you, but the whole world media would be portraying a country with no banks. To put that in context imagine if the u. S. Could do that to north korea or iran. You would never see sanctions. It is the most wicked, damaging thing you could do in peacetime. You talk about contagion. What kind of contagion is that . Just to come back to your earlier point draghi, he can singlehandedly pull the trigger on this area on this. Do you think he will do everything in his power to make sure that they have enough money to survive . Almost sounds like whatever it takes, doesnt it . I dont think he will do anything everything in his power. As a central banker, your primary concern should be about safeguarding the value of your assets, making sure youve got guarantees. Maybe if he could say to the europeans, if we give this e. L. A. That means letting the bank of greece take on more exposure. They could, if there was an exit, one part of their Balance Sheet would get redenominated area the other wouldnt. In that case, they wouldnt be able to pay the ecb back. Can the ecb get guarantees from the european politicians that would make sure the ecb got made good . If they got those guarantees, maybe the ecb could say ultimately, it is a political decision. Gabriel sterne, thank you so much. Coming up, how youtube tries to steal the super bowl show from nbc. Details on that story, up next. Good morning. Welcome back. You are watching the pulse. We are on bloomberg tv and radio. Telefonica is planning a share sales war between 4 billion euros and 5 billion euros. The spanish Telecoms Company is said to have hired jpmorgan to handle the sale. It would be used to pay for recent acquisitions in europe and bolster its Balance Sheet. Shares were down this morning. The irish Building Materials company has agreed to buy businesses owned by lafarge. Holcim and lafarge need to sell off assets in order to win the approval of regulators. Youtube hosted its first super bowl halftime show. The show included a host of youtube stars doing a chemistry demonstration. It was not intended to compete with nbc, but to give teenagers something to watch on their phones. As of sunday night p eople spent triple the time watching on their smartphones. Welcome back to the pulse live from bloombergs European Headquarters in london. These are the Bloomberg Top headlines. The family of the australian journalist has said they are ecstatic after he was released from over a year of detention in egypt. The journalists were detailed on terrorismrelated charges in 2013. He is being deported from egypt. The fate of his colleagues is not known. The new England Patriots have won the super bowl. They defeated the Seattle Seahawks 2824. They secure their first nfl title in 10 years. Asian stocks have slumped after a chinese manufacturing gauge indicated contraction. The purchasing Managers Index fell below 50 for the First Time Since 2012 fueling speculation that the worlds secondlargest economy will need to boost stimulus. The Foreign Ministers of china, russia, and india have been meeting in beijing. David tweed is in hong kong. He has been following that meeting for us. Is russia looking for more support from beijing . Russia is looking for more support from beijing, but the interesting thing to look at is what is going on in the wider asian region as well. If you look at what russias been doing, especially in the last six months or so, it has been accelerating a pivot towards asia. We talk about the u. S. Pivot towards asia. Russias been doing the same thing and it has been trying to increase the speed that it has been doing that. We have seen some military agreements the first ever with pakistan in november. Putin was in new delhi meeting modi, the Prime Minister of india. We are seeing a whole lot of things happen in this tripartite meeting of finance ministers. This is part of that push. It is the 13th of these meetings, and the first time we are going to see the Indian Foreign minister going to beijing, where shes met with xi jinping along with the Russian Foreign minister. Thats the background to what is going on, and the whole message here is about how putin really is looking toward asia for economic support, military support, diplomatic support, and he seems to be getting it. David, im interested in the indian inclusion in this. There was some sense that it was just sino russia. Russia has asian ambitions, not just chinese ambitions. Absolutely. The extraordinary thing, what i found surprising was the way that the asian political elites dont look at russia through the same prism that the United States and the European Union does look at them through what is happening in ukraine. The asians seem to think the ukraine situation is probably a oneoff, to do with soviet history, and they are not quite so concerned, maybe because they are much further away but they are not as concerned as those in the European Union. You see examples