Will be that half past after the hour. The European Central bank is not making it easier for greece as a new government prepares to extend the loan required. The ecb gave greece a small increase in emergency funds. Theres report out of the ecb was to reduce capital controls. Lets find out what we know and what we need to know. Husband locals, he joins us from a berlin honda nichols, he joins us from berlin. They may be playing hardball. Says what it looks like. These two stories could be related. The ecb could not force the greek centralbank to impose controls. That would have to come from greece. If they only have so much breathing room to the emergency equity assistance that could have the effect of forcing them in effect to impose capital controls. It is report at the frankfurt newspaper, which is very well sourced in german circles. Its unclear if this view that german ship greek should impose as paneuropean or just a german view and they want to help make it a reality. We are waiting this morning on the submission from greece to the Eurozone Group on what they actually want in terms of an extension of the Bailout Program , of the Loan Agreement. Last night, and optimistic note from mr. Yanoufikas. He said it would satisfy the greek side and the president of the greek group, the finance minister for the netherlands. One other note is that what we got out of athens yesterday was a formal expression and documents on what they plan to do. For the most part, contrary to the Bailout Program and they want to slow down privatization. What the greek government is saying publicly is very much at odds with what germany and other financial groups here, other eu groups want is complete the program. I am still trying to square everything here. Where positive comments out of varoufakis expressing optimism. We dont have much in the way of greece and they will abide and that could make for difficult negotiations. Guy . Do we know exactly what they are vying for . What we will be seeing them ask for . The latest is an email received Late Wednesday night from a greek officials saying that they are applying for a loan extension, none the surly completion of the Bailout Program which puts them at it. I wouldnt knows if varoufakis is saying publicly that will be able to crack the language that appeals to both sides, maybe they that down. We will not know until look at the actual document which we have reported a good 24 hours away. Guy . Hans thank you. I want to bring the headline. From the ecb. The Governor Council did not discuss greek capital controls. So hans, they didnt discuss it. But, there is a story going around that they would like it pretty i want to square this again. Is it something a technical view at a stock level that it would be a good idea but yet to go into the more political arena of the governing council . I dont know. There are layers in the ecb. Two ways. Discussions at the staff level. Number two the ecb wants it and has not been formalized in a governing Council Meeting which may you have a minority but you have some members of the ecb that could be pushing. We dont know that to be true. What seems to me from the reports we have, it should be clear we dont have perfect information here is there is a minority view on ecb that the ecb should push for more capital controls if they havent discussed at the governing council, it doesnt seem as strong as the initial report suggested. Seemed wiser much indeed. Lets go to act as a bring in our bureau chief. Thank you. Lets ago to our athens chief of bureau. The government is running out of money and the greek banks to a certain extent are running out of money as something may be needed sooner rather than later. Can you give me a sense of how fast the process is and when the crunch point comes . Well, it will come sooner rather than later. The finance minister varoufakis released his speeches and his talking points and the last two eurogroup meetings yesterday. And there we see that he said the bank revenue is falling short of targeted by 2 billion euros. That is the first month of the year. And we have several of the report saying that agrees will run out of cash as soon as next week. They may be able to tap the reserves. Retail banks, but that would be a shortterm fix. The best Case Scenario is greece would run out of money sometime next month and will have to default on some of its payments. A solution to his financing problem is found unless we have a deal with creditors. Quest presumably presumably i was saying you go. Ok, sorry. Deposit withdrawals accelerating and we know that more than 20 billion euros have left greek banks since the political crisis erupted in late last year. Greek banks are running out of cash and they are now almost totally reliant on the emergency liquidity assistance extended by the bank of greece, subject to the ecb of course. Thank you very much indeed. Our bureau chief in athens. Some perspective on the greek situation. Lets go to berlin where we are joined by the president of greek association. Good morning to you. What is your assessment of the situation in greece . What is your view of what needs to happen next . And you think a deal is possible . The First Priority of the government needs to be to regain confidence. The true opponent of the greek government is not in berlin or brussels but really in greece. The biggest challenge is the capital flight from the banks. This means we have a couple of more weeks ball for the banks are bankrupt if they do not do liquidity and particularly from the central bank. It means bank of basically we cannot lend to the real economy and cad per recession in greece and also the greek government will not be able to pay. Thats a scenario i see the more likely at the moment. Hence the greek government needs to seal a deal for extension of the existing program to buy it self time, no more, no less as signal clearly to the population that we were not have a debt cut. Is a problem with all of that especially the latter point the greek people voted for the exact opposite. I think we need to look very closely at the program of the reason they have been saying a lot of the right things. We want to continue reforms especially proving the barack street and fighting bureaucracy and fighting corruption. They are saying a lot of the right things. The question, can they find the compromise and i think its possible for both sides to save face and basically serve their domestic electorates for here and berlin for the german finance minister saying greece has a deed agreed. In the greek government saying we have achieved the modification and we can spend on social purposes. I think a compromise is still possible. Do you think that compromise if possible in the time we have though . That would be the critical thing that needs to happen. It needs to happen in a very quick order. Probably two weeks to make it work. I think of the next to two weeks will be relatively easy. I think we can agree 20 extension of the program and this is a very big. The greek government said we will continue to the reform process and not have a debt cut. And they are saying, here you go, you have additional Financial Support that types you over. The really tough step is what comes after . What is the precise reform they need to do in greece to get additional money . And what is the plan for the next two years . The greek government needs money for the next two years otherwise, it is a matter of time before the country is bankrupt. Do you think you could fashion a deal more on structural reform rather than focusing on fiscal reform . Do you think that is where the balance should shift towards . Absolutely. The focus has to be on structural reform. It is also the willingness to compromise in europe on the fiscal spending side. I do not think the obsession with keeping 45 , theres a willingness to compromise. The difficult situation is with what we are currently, our growth projection is deteriorating, which means the income of the greek government is declining. Actually improve taxes or lower spending even more. Actually, achieving fiscal sustainability over the last two or three months, has become more difficult for the greek government. If we cant find a deal, do you think is likely the greeks should impose capital controls . Capital controls is really a last resort option you want to do. When you impose capital controls as a government, you send a clear signal to the population and that is, look your deposits are no longer safe. That has a huge confidence of fact. Companies no longer investing in the country. You would see particular Companies Going abroad and not wanting to come in. You really have a negative impact on the sentiment in the country. And you really want to do it only if you absolutely no option yet. But yes, if you dont have solution on till the end of next week, i think the next step will have to be capital controls. Give us a sense of how long you think they would be required for. Iceland still has capital controls years after the financial crisis. Cyprus through his program able to loosen. Do you have any idea any sense of what history would tell us for how long the capital controls would be needed for . It is very hard to say. It depends on the greeks government next step. If they follow cyprus to agree to a new program to help and clear reform the capital controls could be lifted quickly. If you have a situation like iceland or march worse like argentina, it can last for quite a while. Even worse, the greek government would have to take money out of Pension Funds and other public funds basically from the population to finance is spending. That would be the worst Case Scenario. It would really deteriorate or distort Growth Prospects for the next couple of years. The final question, marcel. There was a belief in a series of statements a couple of months of that, the German Government believed that an exit of greece from the eurozone could be you have your air to the ground in berlin, in germany. What is the current thinking about whether or not that is achievable . An exit from greece could be . It yes, unfortunately, a lot of people think greece can be that is an absolute illusion. It is a dangerous game. Remember 2008 thats what we said about lehmans brothers. We can deal with that. Thats not some systemic. We were entirely wrong. We should be very careful and we do not know how Financial Markets will react. My sense is when could to other countries but we have italy with huge problems. No growth for the last 10 years. Very high public debt. What happens if Interest Rates rise . Even on a moderate scale from those countries, you see Interest Rates rise and Growth Prospects deteriorated. And then having it spill over across of the countries. I would be very, very careful to underestimate the risk of contagion of a spillover of the greek situation to the rest of europe. It may not be as bad as 2010 and 2012, but i see it as a real economic and Political Risk for europe. A great pleasure speaking with you. Thank you. The president of the German Institute for research, marcel fratzscher, speaking to us from berlin. It looks like it is on the table. A long extension requests. Bring us to our twitter question of the day. Should the ecb force capital controls an interesting starting point. Should that happen . Is that the best thing . Slow the process down and allow political debate to happen or just be really the end of the road or the beginning of the end. Tell us what you think guyjohnsontv. We will take a break. We are back in a couple of minutes. Welcome back. Nestle posted numbers today. Lets find out the results. Caroline hyde is here. They make a lot of stuff in switzerland. They did talk about the rmb effect. Half of their research and development is done and they said thats where the impact is. When you look at the 20 numbers, the currency shift 2014 numbers, the currency shift. They didnt say how much. They said the Swiss NationalBank Decision has made a life more uncertain. And if they are thinking twice about expanding. There were looking at acquisitions. About their swiss operations, they think twice about the cost that will be driven higher. They said it will not affect job cuts. It wont hurt to jobs. Luckily, much of their debt is an dollars a euros. They said they have been dealing with this for years in fact. Overall, bringing them back dollars and having to convert to swiss francs for reporting purposes underlying business not as good as expected. The underlying business. China is a problem. United states pizza and other frozen products. What are we looking at . More optimism for 2015. They admitted 2014 was not at their best year and their slowest in five years. It was below their longterm which was 5 . China is where they were hurt. They say changing demand of their and they had to respond to fewer expectations of consumers. They are focusing on innovation and a new formulation, relaunches. They said over the next couple of months looks pretty good in china. China is where it hurts and its been smart. Biggest market. If you are looking elsewhere, brazil, emerging markets, youve got to live with a slower brazil. U. K. Germany, rick weak point in your. In europe. When you look at america, you bring up frozen food young in unit. Actually, america has outperformed in terms of sales up 5 . Net cafe not doing it well. Relative to the rest of the market, they say look relatively good growth. They are sound optimistic. U. S. Frozen goods, we have products being launched and will be back in the portfolio. Optimism for 2015 and maybe no real concern. A little of the get go this margaret thank you in deed. A little of it. Thank you in deed. We will have the ceo. We will get it all. He is coming up right here on the pulse. Welcome back. Greece has submitted is loan request to the eurogroup. Lets bring in jonathan ferro. A conversation surrounding capital controls and we have the long and an extension. Loan and an extension. Nobody quite understand the details. Was speaking anonymously. I guess we have to wait and see. What we know is that they have a went in for a loan extension . What does it no question mark we do not know. Thats will be the debate. This effectively guess of them around a table. You put to the loan extension and maybe they call the eurogroup and how the finance ministers and try to hash out. Possibly around yesterday. You can agree to this or do you actually have to get the guys back around the table . If you get them, is there a greater risk . A greater risk it doesnt work . I am wondering how much has changed in the last week. The less finance ministers meeting and this extension request, how much has changed . Maybe not that much. They still have to compromise. The greek banks are running out of money. Maybe they at the lower level. And reports talking about capital controls anywhere. A lot of interest. Do not talk about capital controls. Like about fight club. It brings us to the twitter question is it the smart thing to do or capital disaster . Let us know what you think. We will be talking to air france when we get back. Welcome back to the pulse. i am francine lacqua. I am guy johnson. Group profit fell last year. That followed the longest strike in the history. Lets go to our reporter. What did he have to say . Last year of course course was a very difficult year for air france. The worst in the airlines history. But of course, in the long term not the only challenge air france has to face. They have strong pressure and competition from lowcost carriers. I asked the cfo where theyll lower fuel prices if the lower fuel prices could help recover this year. They would help but we believe today, theres a chance that much of it, not all of it could go away. Change in the u. S. Dollar a euro and which is taking go away part of today. But also pressure which is linked to the equity in the market in and out of your. In some parts of the world, namely africa, asia, south america, compared to the demand in europe is too sluggish. This is basically an online with what we see, which are increasing. Overcapacity, a strong price pressure a negative impact from the Dollar Euro Exchange rate will continue to weigh in the balance for air france this year. This year, they are saying will be very tough. In a statement that said weft to be very, very cautious all about the 2015. So cautious, they didnt want to give a profit target for this year. Last time they did and they had three profit warnings. This year, they said they do not want to give a point to shareholders in have a surprise target for this year. Are more job cuts needed . Well, of course, air france has already cut many jobs and been a lot of costcutting of plants in the past few years. They cut to more than 5000 jobs since the end of 2011. The cfo told me more job cuts cannot be ruled out. Cuts in the past, thousands of jobs in air france. Will announced there would be 800 more we have announced there would be 800 more to go by the end of this year. This on top of the 1300 that i expect after the end of march, next of march. Indeed, that is big enough. We need to sit down with unions and send it down to look at each and every this is an see what type of adjustments we need to look at and the impact. [indiscernible] we should not leave any stone unturned. More job cuts cannot be ruled out. This year, pierrefrancois riolacci and there will be more tightening from the 90,000 plus of the group which is europes thirdlargest Biggest Airline group. You have to be really careful of the job cuts. That is when he said social conflict and the whole reason behind the strike last year where the fact that some of these costcutting measures were transforming some pilots to lowcost carriers, where of course they have lower salaries. Back to you. Caroline on air france. Lets move on. The Bloomberg Top headlines. Greece has asked for ace its a month request as the centralbank granted banks a small increase in emergency liquidity assistance. The indebted nations of 20 billion euro program expired from the end of february. Tsipras set it is crucial. We have confirmation of the request has gone in. This is the [indiscernible] head of the eurogroup and we have received the greek request for a sixmonth