Im guy johnson. Francine and im francine lacqua. We are getting breaking data out of germany. The figure for current assessment, pretty much in line. If you look at Business Climate current assessment, they are less. Guy 106. 8. The median forecast 107. 7. Slightly on the light side. Interesting thing is why german industry feels that it needs to be less optimistic during it i guess there are still ongoing issues with russia. Francine greece. It just finished so there were all these ongoing situations with the negotiations in greece and that huge deal with russia. That would kind of explain it. Guy 113. 28 is where the currency is trading. The u. S. Dollar down by about 0. 5 . Francine after fridays dramatic deal in brussels, greeces Prime Minister has just a few hours left to submit reforms. Guy we have every angle on this story covered. Joining us from berlin, our international correspondent, hans nichols. From the dread, charles. From athens, Erik Schatzker. Hans, lets talk to you first. You were there on friday. Where are we on monday . Hans well, weve seen some positioning from all the finance ministers, prepping their publics for what to expect. We dont have the details yet. We dont know how greece is going to abide austerity measures. They got a little reprieve on their fiscal surplus. They can spend a little bit more. They dont have to reach that 3 target this year, but we still dont have a great deal of details. What are they going to do on privatization, on labor market reform, on the minimum wage . The government had been talking about an increase. Is that still going to be in effect . The greeks are saying they will act responsibly. This is just from a press conference out moments ago. They expect the eu to do the same. If there arent enough specifics, is going to be difficult to get it passed. That is true here in germany, probably in other countries. I will see what the abide is in spain as well. It does look like the german politicians do want to see some specifics. Francine it wasnt just germany pressing athens. Some of the most skeptical audiences have been some other european nations. Give us what schaeubles stance on this was. Ryan hans we have a great story about mr. Schaeuble pressing for a vote. Come together on Tuesday Morning and have a vote. That was rejected by the eu finance economy ministers. The economy minister out of spain said there was a need for some sort of verification and then they decided to have this Conference Call. It is another layer, another safeguard. That could be one of the breaking points that trips this up. Francine, guy . Guy thank you very much indeed hans nichols in berlin. Francine for more on spain and their finance minister, lets bring in charles from madrid. Why is the Spanish Government watching events in greece so closely . It is watching events so closely in greece because they see a big year in spain. We have an antiausterity party which is an ally of syriza and it is riding high in the polls. It is leading some of the opinion polls. The Spanish Government sees a risk that if greece is given a soft route out of their difficulties, that could play into the hands of pdemas. Guy i guess theres a flip side way of looking at this. If he is seen domestically as beating up on some result, isnt there a danger that there could be a reinforcement of podems as . Is there any other option . The government, i think would say that the situation between greece and spain is completely different. Spain, the economy here is growing quite fast now. Recovery according to the government is well rooted. Spain is going to grow quite well this year. The government will say we have made the tough adjustments that were necessary, and we are seeing a way out of spains economic problems. They are taking credit for the tough decisions they say they took, which is helping spain back on the route to growth. That is their presentation of the situation. Francine charles, thank you so much. That brings us to todays twitter question. Is spains government scared of surreys . Tweet us. Guy lets go to the epicenter of this story, athens. We are joined from there by bloombergs Erik Schatzker. Erik, i guess people are trying to figure out what plans we ultimately will see athens putting out later today. What are you hearing . What are people talking about there . Very little thus far. Good morning to you. It is a quiet day in athens. It is called clean monday. The lead up of fasting towards easter, a national holiday, quiet for everybody but Yanis Varoufakis, who is in the finance ministry with his advisers, coming up with this proposal that he has to presented the eurogroup. Hans was talking about that. It is scheduled for tomorrow to decide whether or not greece is satisfactory. We have not heard from mr. Varoufakis. He was tweeting last night. A few moments ago, a Government Spokesperson was on television saying greece is looking for something mutually beneficial. If greece acted responsibly with the eurogroup on friday and expects the eurogroup to acting kind when it comes down to examinees these proposals. The devil is in the details. For the eurogroup and force a result for syriza, so far very little in the way of opposition. Everyone knows that greece conceded a lot and gained very little on friday. Given the fact that the devil is in the details, what greece comments to is going to be scrutinized very closely. We will not see until tomorrow how syrizqa response. Francine it is so difficult to reconcile the creditors demands with their voting pledges, what they promised at the election. Is there talk on the ground that this is a government that may go back on what they promised in the election . Excellent point. It is pretty much impossible to reconcile election promises with what greece has to commit to what it has to commit to the imf, to the European Commission to the ecb. For the moment, it doesnt seem as though there is any danger that the government will fail over this particular issue. People seem very encouraged that Yanis Varoufakis was able to gain four months of additional breathing room. If i could speculate, it may take that long before we find out just how much internal opposition there is likely to be in syriza. If greece commits to aggressive spending cuts, thats almost a certainty, but Yanis Varoufakis then has four months to negotiate further breathing room or further concessions with the eurogroup. That is what this fourmonth extension is all about. That appears to be why he and others are speaking with a degree of confidence. Varoufakis has not emerged in person or on twitter thus far today, but he did speak yesterday. It is worth listening to Yanis Varoufakis in his own words. We are in the process of compiling the list of institutions. We will submit it in good time for them to have as much time as possible to assess it. We are very confident that that list is going to be approved by the institutions, and therefore we are embarking upon a new phase of stabilization and growth. Francine the greek finance minister there with Erik Schatzker who will be covering this. We are trying to find out more about minimum wage, about how to deal with promising so much and having to go back and renegotiate. Guy i think a lot of lessons have been learned on how european politics works. There was apparently some very heated exchanges, raising voices, talking about the need for varoufakis to learn these lessons. They have learned their lessons in fairly short order. What happens over the next few months . Francine i would not want to be in a situation where i have 48 hours to come up with major reforms to keep the eu happy. Guy we are going to take a break. Coming up, hsbc under pressure this morning. It has suffered another blow. Earnings missed estimates. More on that throughout the show. Francine plus, we go backstage at top shops fashion show and talk to the man in charge. Francine welcome back to the pulse. We are live on bloomberg tv and radio. Guy lets the at back to greece. For more, we are joined by a specialist at btb capital. Everybody is talking about what is going to happen over the next month. Lets talk about what happens over the next few hours. Germany and others have forced greece into a position where they are going to have to give a lot of ground. Lets say by the end of the day they dont. What are the outcomes that we should be looking at . Guest i think certainly it is going to be a crucial 24hour period because the germans have forced the greeks into a corner. The greeks now have to come up with this list of reforms today. That will be reviewed by those ministers tomorrow. If theres a situation where the reforms fall short of what finance ministers want then theres going to be a real problem. It brings into question the role of domestic politics. The point you made. Francine the devil is in the details, but we are speaking to a spokesman on the ground in athens. He is saying the greek government will gradually raise the minimum wage and restore collective bargaining. They are introducing bills and upholding protection for closures. It seems that what we are hearing for the moment, and i dont know if it is to give a message at home, but this seems like it is not going in the direction where the eu wants it to. Guest im sure thats the case. You raised a good point earlier in your program about how does the greek government sell this to the electorate . The fact of the matter is, they have a mandate to end austerity. If they fall back on that or lose support, or theres divisions within the government then the next thing is, you are talking about new elections and a government collapse. If i was in the greek government, clearly youve had a mandate. It would be crazy to turn around completely and surrender to the eu and say actually, we are going to have to continue with austerity because if we dont, the banks collapse. Why would a far left party want to support bankers rather than ordinary people . There is going to be a Sticking Point here. There is a fourmonth extension. Guy as you said, this is all kicking the can down the road. It is a timehonored fashion. Guy im just wondering, to get to that, the shortterm politics of this is going to be fascinating. They think theyve cut this deal. Now the reality of it the mandates are beginning to collide. Youve got this spokesman making these comments about the minimum wage, about pensions, about the reforms which the germans are going to be so determined to see pushed through. I dont know what the germans are thinking, but im looking at the screen and my suspicion having covered the story from the beginning, is that that is irreconcilable. Guest i think it is. George soros has made the point that the real danger in terms of the future prospects and viability of Monetary Union is a heartening division between creditors and debtors. A heartening division between north and south europe. Hes talked about a europe that is led by germany. Thats not a viable economic model going forward. It is not a union of equals. It is not sustainable. I think it calls into question the domestic politics. If the greek governments had a mandate from their voters and that is pushed aside, that calls into question the fundamental democratic ideals, whether these elections are francine going too far, and it . I would love to vote for no taxes and longer life, but economic reality settles in. Guest the point is, it is not quite as simple as that. The greeks could quite likely say that theres lots of commissioners who have not stood for election. They are telling greeks what to do. Francine spain and germany. Guest he could be out of a job as well. Hes protecting his own back. There is a fundamental democratic point. Why not just submit the election manifesto to the german finance minister and see whether he approves it or not . Clearly that would be crazy. Francine or they could vote to get out of the euro. That would be the most democratic way of dealing with it. Guest we know that referendums often become neverendums. Weve had all these cases. It is a fundamental democratic point and there is a tension between the greeks. They have to understand how they interact with their partners. Theres also the democratic imperative of what voters want. This has been a longstanding theme of division between the eu political elite and the voters who are now rejecting austerity and worried about democratic procedures. Francine neal, thank you so much for now. Neil mackinnon. We want to quickly look at the markets. Yields were down after these comments. It will be interesting to see that. Guy when we come back, we will talk more about hsbc. Disappointing numbers out of the bank this morning. All of that after the break. Francine welcome back to the pulse. Guy hsbc this morning missed estimates. The Bank Reported a drop in profits. Shares fell on the news. Lets wrap it all up. Anna edwards. Lets go to the numbers first of all. Numbers werent great. 18. 7 billion worth of pretax profits for the full year. That was against an estimate of 21. 5 billion. The shares fell. They had been gaining just before we got those numbers. What is to blame for all of this . Higher costs, essentially. They had to make provisions for various areas. That totals 3. 7 billion. This is a large amount of money. That was a sizable chunk even before we started talking about the foreignexchange markets. The company saying that 2014 profits disappointed. Return on equity is lower at 7. 3 . That is below estimates and below last year. They say that 2015 is starting out in a satisfactory manner in terms of performance of the business. This is a company that has tried to restructure under the ceo. He has executed 74 businesses since he took over in 2011. All that has been overshadowed by other things. Francine the tax scandal that is unfolding. We also found out the ceo has one. The ceo has a swiss bank account. The company expressing the get an expressing regret and apologizing. They are saying this country means their policies. Gulliver referencing historical practices how much work there is to do. Over the weekend, the guardian published details of the Government Owned Bank accounts. He was putting previous bonuses using a company in panama to do that. Hsbc has said that hes done nothing wrong. Even the guardian did not suggest that he broke the law. But they say the structures were in place for other reasons. He has paid his due, is the message from the company. He said that he paid taxes in hong kong and london. This doesnt end here of course. They will talk to you cap parliament on wednesday about the operations. Francine what a story. Thank you, anna edwards. Guy coming up, a shakeup in the u. K. Pension market. We will tell you how one of the top Wealth Management firms plans to simplify personal pensions. Francine just a reminder, you can follow us on twitter. We are back in just a couple minutes. We just found out from a greek spokesman that the greek government hasnt sent a list of measures to the eu. We will go live to athens with Erik Schatzker. Francine welcome back to the pulse. Im francine lacqua. Guy im guy johnson. Headlines out of greece and the last few minutes. The kind of financial reforms the country is preparing to submit. Lets get the details now. Lets rejoin Erik Schatzker. What have we learned . Well, we have learned from a spokesman for the government who spoke to sky news. Ill tell you, we learned what the greek government doesnt plan to do, what will not be on the list of reforms submitted to the eurogroup later today. It is not that this isnt going to be included, but we are not talking about austerity. The Spokesman Says the government is going to gradually raise the minimum wage. The current greek minimum wage is about 683 euros a month. The government would like to raise that to 750. It is not going to happen all at once, but the greek government is going to restore collectivebargaining rights once again. You can see in this an effort to communicate with the greek people with the potential holdouts among syriza. Alexis tsipras and Yanis Varoufakis are walking a very fine line between satisfying members of their own party, living up to the promises they made to the greek people, and satisfying the eurogroup, which wants to see Real Progress on greeces efforts to reform the Public Sector and cut federal spending. The spokesman was quoted as saying that greece is going to uphold protections for foreclosures and introduce a bad loans bill in the summer. We have to assume that some of this is going to be in the proposal to the eurogroup. But none of what i have just told you includes anything about efforts to collect unpaid taxes for example. A tax on the wealthy, which has also been rumored. Efforts to curb smuggling and raise taxes on some of those. That, we have yet to see. Very little coming out of the government. We know that varoufakis is trying to put together the finishing touches on this list of proposals that will be submitted to the eurogroup, 19 governments which needs to be approved tomorrow morning. Otherwise, and this is what we have to emphasize, why is Yanis Varoufakis confident that these proposals will be approved . Because the alternative is a banking crisis and a sovereign default. Even Yanis Varoufakis and his Prime Minister recognize the severity of that outcome. Back to you. Francine i think you are spot on. This is interesting. The spokesman is saying they will send a list of measures today, but they havent sent this list to the eu yet. The spokesman going on National Television saying we wont cut pensions, we will increase minimum wage, to me seems a very political message. We will have to negotiate, but we still have your back. Yes. Again, it is a trite cliche, but the devil is in the details. We may have to wait until tomorrow morning to find out what is in this list of measures that constitutes austerity, and which may provoke a negative reaction from members of syriza. This is a government that swept the power. It is a coalition, but they won almost an actual majority of seats in the