Has a new goal insight as it remains at with creditors. It needs to come up with a reform plan its creditors can agree on. Guy for more, we are joined from greece by our international correspondent, hans nichols in berlin. A reporter who normally is in greece, but ive got this completely wrong he is in london with us today, which is great. Hans, walk us through the roadmap to may. Hans in many ways theres a lot of talk about deadlines. The European Commission is saying that midmay after that may 11 meeting, is the real deadline. Mr. Dice alone heads they he may have said it best when he said the real deadline is when greece runs out of money. We got 80 million coming due today. Later in may, dont forget that may 1 payment. A lot of focus is on the may 12 payment. That is to the imf. There are another 200 due on may 1. Mr. Dijsselbloem seems to be the most negative. He says they are still far apart. Take a listen and have a sense of how many people are talking about isolation and contagion. Mr. Dijsselbloem said just 2 of euro output is coming from greece. That seems to be an indication that there is an emerging view that you can survive an exit. One final quote, he said, on the content, we are far apart. Everyone sees the process is difficult. I will leave it to my athens colleague to break down what the greek government is saying. Francine every time greece becomes hot to my get more concerned about greece, the german 10year yield falls further. When are we going to see it negative . Hans it opened today unchanged. The 10year at 0. 07 . It touched a low of 0. 049 . I believe that was friday afternoon. It still has a ways to go. It seems like it is stock. We will see how much further it drops. There was a lot written this morning on the comparison between the 10year note in the u. S. And in germany. There are no longer appears to be the same correlation. Looks like there is a slight quality there. The question is, where is this fixed income money going . Where is it going to go for yield . It is not going to find it in germany and the u. S. Guy return of my money, not return on my money, maybe some peoples concern right now. Thank you very much indeed. Give us a sense of the different views you are picking up from the commentary you are getting in athens and the view you are getting here in london and how big a spread there is between those two. I think the spread cant get any wider. This has been the case since february 20, the agreement and we will see a different commentary that the greek government has within greece and decide which of the greek creditors are talking about. We are really talking about a different level here. It seems the red lines that both parties are talking about cannot come soon enough. Francine give us a sense. The story here, greece is still running out of money. We are no closer to an agreement. Are we going to see fresh elections in greece . This is feeling like they are proud of the fact that the government has not given in. Vassilis support for the sabres administration is diminishing as default options are getting higher and higher. Able showed there was a po ll showed there was 80 approval for the sabres government and that is down now. I think to break out of this impasse, we need to go on a very direct message and a very direct mandate. Guy we need another mandate, a referendum . Vassilis a referendum or elections on whether greece will stay in the euro or not. Guy lets bring in menacing from cross ridge capital. From the point of view of the Financial Markets, there seems to be an increasing view that an exit is possible. But if you talk to people, there is still this sense that a deal will get done. Im struggling with the increasing narrative towards the disaster which is telling us that maybe in may, there will be some sort of key crunch point. Everybody i talk to in the Financial Markets is that just muscle memory or is that actually i dont know on what that is based. Manish whatever youve heard from varoufakis is disappointing. There has hardly been any progress. There are two things. Default and grexit are not the same thing. That is clear. What can really push greece out . If the banks run out of money, then you have a big problem. It is likely that if greece defaults, you will see capital controls. You cannot be funding banks and letting capital flow out of the country. You might see a default. We dont know yet. Theres a likelihood that greece will pay as they have done. Varoufakis is a master of game. We havent heard him say what he is going to do about it. It is also likely that maybe greece starts paying its pension employees in ireland and england. You are going down various paths. I still think the ecb will keep greece within the eurozone. Francine two free questions. If the ecb continues giving the greek banks support in case of default, this would be a political agreement. What happens to the euro the day after a default . Up or down . Manish we are talking about a serious threat on greece. It is getting isolated. I dont think it is as magnified as we were thinking before. Guy how difficult would it be to stop paying pensions . Im trying to discount options here. Vassilis the current government is looking to take pensions away in the first of the month. They are looking to put money aside for that. In the next elections, they might be out of the government. The first thing they are doing putting the money aside. Guy what is your sense, what is the sense in athens about whether theres enough money to cover Everything Else . Vassilis right now, greece has today at least 4. 2 billion euros in may. Word is the government is short about 2 billion. Guy so only halfway there. Vassilis the may 11 meeting is convening for a longer payment. May 12 is a very important date. I think the government will do the best in its ability to meet the imf payment. That is what they talked about in new york last week. But still, i think we are on a very tight schedule here. Guy francine manish, we have to legitimize this. If greece was to leave the euro that would be a disaster. Maybe a disaster according to economists. Lets say that the country defaults. We keep the ecb Lending Facility available. We have capital controls and we have ious. What is the likelihood then of a greek exit that would be accidental . Manish i think that if theres a default then im sure theres going to be probably a referendum or a new election. They dont want to do a deal with the ecb on present conditions. There has to be a new mandate. Probably that mandate has to begin on the point of whether you want to be in the eurozone for you want to exit. The people will decide whether they want to begin the eurozone or they want to be out. It will be a crisis if we move out of eurozone. It will be a crisis definitely for greece. Guy ok, thank you very much indeed. Manish is going to stay with us. Vassilism thank you very much indeed. Coming up later, hopefully we are talking to the cypriot finance minister for his take on what exactly the story looks like this monday morning. Francine it will be great to get his take on the negotiations and have a feeling of what he thinks about capital controls. Guy been there, done it. What else is on our radar, it is finland. The countrys sensor party won the national elections. He has promised to create jobs and promote business friendly policies, taxes, and laws. Finlands economy is one of europes worstperforming and recession now for three years. Francine Deutsche Bank will exit part of its stake in the postbank consumer operations according to a person with knowledge of the situation. The company is weighing an option of making deeper cuts. That is the management boards least favorite course. Guy European UnionForeign Ministers will meet today to discuss the illegal trafficking of migrants after a boat capsized off the libyan coast. Only 28 survivors have been recovered so far from what could be the most deadly of such tragedies in the mediterranean. Francine that brings us to our twitter question of the day. How should europe deal with migration. Tweet us. Guy still ahead, we are going to look at chinas latest stimulus boost and why the country cut the amount of cash lenders set aside. Francine and, David Cameron channels market margaret thatcher. We will talk about the plans to sell discounted shares. Guy a meeting after the boat tragedy in the mediterranean. Europes commissioner for migration says bold action is needed. Guy welcome back. You are watching the pulse. We are live on bloomberg tv, on the radio, streaming on bloomberg. Com, and on your phone. The Chinese Central Bank announced new measures over the weekend to stimulate the economy. A bigger cut in the reserve requirements was laid out. The one percentage point reduction in the reserve rate will allow to do lending. For more, lets welcome Bloomberg Intelligence chief asia economist tom orlik. Tom lets talk about the motivation of this and where a 100 basis point cut is on the sliding scale of policy options. Tom i think the motivation really comes from two sources. Firstly, for much of the last decade, china has faced capital inflows. That has pushed the central bank to raise the ratio and lockup those inflows because before they could trigger runaway inflation or asset bubbles. That has changed. We have seen capital exiting china, so the central bank has to cut the reserve requirement ratio to ensure the banks have enough funds to lend. The second motivation comes from concern about slowing growth. On the surface, 7 improvement in gdp in the First Quarter looks pretty strong. If you dig beneath the surface, theres weakness in real estate weakness in exports. Thats why we are seeing this pattern of easing as the government tries to bolster demand. Francine tom, on friday, the authorities banned margin trading through the socalled umbrella trust. How do that to actually matchup . It seems they are giving with one hand and taking with the other. Tom i think the equity markets in china are definitely entertaining. In terms of their impact on the macro economy, they are kind of a sideshow. So i think the margin trading rule is certainly aimed at curbing some of the enthusiasm the irrational enthusiasm on the mainland equity markets. The reserve requirement cut has a positive impact on the equity market but what the central bank really wants to see is it passing through a stronger loan growth boosting business investment, giving a boost to the real economy. Francine tom orlik, our economist in beijing. Guy lets get back to manage sing. How do i translate a 100 basis point cut into equity markets . We have seen a response in the mining sector. It is what you would expect. How do i put this larger than that . Manish people are concerned about 7 growth in china. Lets not forget that this would be 14 growth if you are looking at 2010 numbers. The second is that this is a liquidity measure. The central bank is not intervening in the market and buying dollars. They are selling. They are making a debt for bond swap in the market. A lot of this liquidity is also going into bonds. This is definitely going to hurt equity markets. There is concern about, can china equity markets rally yes, it can rally. If you look at domestic wealth of china, 75 is tied to housing. Only 25 is equity markets. In the u. S. , the soft market is 78 almost. There is more to go. If you are talking about chinas premier leader said they will intervene when there is a slowdown. I think there is more to come. The cost of capital has to come down. Francine we are not really worried about the growth rate. What we are worried about is an overheating economy. Theres a danger that if we create bubbles that burst suddenly and that we werent expecting, then theres a meltdown . Manish i think what we have seen in terms of equity volume is because of policy response. You have seen the sean the Hong Kong Shanghai connect market. You are seeing people funding but you are also seeing that china is careful of not letting it go into a bubble. They will give more stock to short. They are putting that measure in place as well. The chinese economy will have some give and take. That is what we are seeing from china. Guy if you were to look at the main economic engines on the world right now, how many are firing on anything close to potential . Manish if you look at the recent number the q1 gdp number could be as high as 2 to 3 . In this country, there was an article yesterday that you can do a fiveyear mortgage at 2. 6 . You are also benefiting from low oil prices. If you look at the number coming from europe, the numbers are going up. Europe is plus 50 and the u. S. Is 50. I think you are going to see a quarter of european growth. With growing Consumer Sentiment the sectors are going to do well. And also, what is happening in china. Francine what is your take on emerging markets . You are saying, if we look at the contribution of china in the world economy, we should not be worrying at all. Manish sure. I would say, china consumes half the metals of the world. Francine and oil . Manish oil as well. You are going to see is some impact. There is more to go in terms of liquidity. If there is a greater slowdown, then brazil, peru, and other emerging markets will be impacted. Francine thank you so much for all of that. Manish singh, head of investments at cross ridge capital. Guy Deutsche Bank madey ditch its retail operations. Francine also, we will be speaking to the cypriot finance minister about the situation in greece. Francine Deutsche Bank may be planning to ditch its retail operations. This is said to be part of a strategy revamp that may be announced as soon as this month. Lets bring in our European Finance team leader. Thank you for joining us. What options is the bank considering . We know the bank started with five models. It has narrowed that down to two those being a partial exit of its consumer business and a slightly more radical shift which would see all of its consumer businesses combined and an exit from those. As part of both scenarios, there would still be a scale back in the investment bank, but that will depend on the size of the retail divestment, which is being pondered now. Third scenario which was presented a few weeks ago, that we should see the perimeter of the bank unchanged while the bank scale back the cost of business. At the moment, that is the least favored scenario. Guy what is the timeline on this, do you think . Elisa we understand that theres a Supervisory Board meeting as soon as friday, in which a final decision may be taken. That is not entirely certain yet. Both the management and the Investment Community are still somewhat [indiscernible] on the advantages and disadvantages of those two scenarios. The most radical potentially raising concerns about how the bank will fund itself in the future. It will be splitting off the deposits. The ones in favor pointing to a boost to profits in the immediate term. Guy we are going to wrap it up there. Elisa martinuzzi joining us in milan. We are going to take a break. Just because im away from my desk doesnt mean im not working. Comcast business understands that. Their wifi isnt just fast near the router. Its fast in the break room. Fast in the conference room. Fast in toms office. Fast in other toms office. Fast in the foyer [pronounced foyyer] or is it foyer [pronounced foyyay] . Fast in the hallway. I feel like ive been here before. Switch now and get the fastest wifi everywhere. Comcast business. Built for business. Francine welcome back to the pulse live from bloombergs European Headquarters in london. Guy these are the Bloomberg Top headlines. Francine china has reduced the amount of money lenders must set aside. The biggest cut since the crisis. The reduction is about 200 billion worth of cash to the markets. Guy china and pakistan will sign an agreement for 28 billion over the next couple of days, this according to officials. The deals will take place during president xis visit to islamabad. Francine in a real estate deal worth 5. 9 billion, private jets prtoologis has agreed to buy ktr. The move will expand its presence in key u. S. Markets. Guy we are 17 days away from the u. K. General election. As campaigning continues, the conservatives are taking a page from margaret thatcher. If they stay in power, there will be a retail offer of lloyds shares. Reminds us of the early 1980s when we were selling off gas and telecoms, everything that was part and parcel of the government sector. Anna has the story. Anna more than overtones of thatcher in this policy. What is being proposed is that shares in Lloyds Banking group would be sold for the first time in a retail offer. The government is reducing its stake that it built up at the height of the banking and financial crisis. They owned 43 of this banking group. It is now down to 22 . This is the first time we are hearing the government talking about a specific retail offer. No doubt echoing those ads of the 1980s that weve been talking about this morning. Some of the details on what will be on offer if we see a conservative government the stock would not be sold at lower than the given price. That is defined by what the government paid to get into Lloyds Banking group in the first place. You could buy tranches of 250 pounds up to 1000 pounds worth. There will be a loyalty bonus. You get an extra share back if you hang on to the shares for a few time. Francine the day could be dominated by the launch of the s p manifesto. What do we expect . Anna one thing that is going to feature heavily is more power for scotland. The snp wants to give that parliament more power. The other feature will be antiausterity policies. Not just antiausterity for portland for scotland, but for the whole u. K. They make mention about plans to influence nhs policy across the rest of the u. K. To ensure it goes back into public hands. They are not shying away from the question about how legitimate is it for scottish mps in westminster to vote on issues that are about england and wales. The snp argues that it is legitimate in their right for them to get involved. I think weve got a short a chart showing how many seats the snp could win. The latest polls suggest they could win about 50 seats. That is a big yellow line at the bottom of the chart that would look like an enormous outlier. Back in 2010, they just got six. This would be a real sea change in british politics if we see the snp winning 50 seats. Guy maybe it is the weather, but lets talk about europ