Guy the plan may be considered if the greek government fails to convince its creditors that it can secure more funds. A former ecb president spoke to bloomberg. Nobody is optimistic, frankly speaking, on greece. We have to be totally realistic and it all depends on maturing of the position of the government understanding that in any case if it wants to deliver growth and jobs, which is the main goal of that government, it has to produce Recovery Program that inspires confidence to the international community. Guy Jean Claude Trichet speaking in singapore. Francine seems pretty candid. For more, we are joined by one of our reporters. Standard chartered banks chief economist. How do you interpret what the our bloomberg scoop about the ecb . You have to present some reforms and you have to do this as soon as possible. The may 11 europe meeting may be the last date this is acceptable so that greece can present a full list of reforms that bode well with what they want to see. I think they are saying enough is enough. At the moment, you have to understand that the ecb by 74 billion euros, the greek Banking System, it keeps it afloat. At the moment, with the decree that was passed yesterday by the hellenic republic, 2 billion euros are going to be transferred to the bank of greece. The ela buffer is going to be down to one billion euros. That is a small amount of money. Guy how ywould you read the situation . The pressure has been put on greece from every quarter. The germans are saying, we do not expect the deal. The ecb maybe taking about increasing haircuts on the ela. Put all that together for me. I think it is increasing the pressure on both sides actually. It is not just greece. I think we should be in a situation where both would want and desire a solution. And the ecb is simply telling them that we are running out of time. You cannot expect us to keep giving you more and more time. The ecb has been fantastic in the way it has managed the crisis over the past three years. They have given a lot of time to government and politicians with her omt back in 2013 to do the right thing. And politicians have government have simply not delivered. The sooner they come up with some sort of agreement, the better. But so far, europe had not missed an opportunity to miss an opportunity. Francine very well put. If you look at the timeline but these keep on changing. We do not know how much money greece has. I was a report from one of our economists say may have until july the end because it is unlikely the ecb will do anything with the ela until he cannot repay the money is to the ecb. That comes july 20. Would that be a Fair Assessment . I think so. I think they might be able to gather enough cash to the next few payments during the next two months. For the july payments, 7 billion euros, theres simply not enough cash. There will need to be a plan before the. Guy are the local of these and the Central Government working handinhand . Are the local authorities and the Central Government working handinhand . The mayors of large cities have expressed discontent in this decision. However, there is not much to be done. They have to put the cash in the bank of greece. Francine sometimes it is difficult as a participant to understand the implications of politics. How likely is it that we go because there is a faction within the seed of the party that is against everything the government is doing at this point. The radical left sees a way for greece outside the euro. And they have been saying it openly. Tsipras tries to maneuver between them and what the creditors are looking for. There is a very interesting opinion poll that just came out today in the papers. It shows that positive opinions for how the government is dealing with the bailout talks is less than 50 right now. This is down from 75 a month ago. So, as a greek default looms, probably elections or a referendum about staying in the euro is the only solution to go. Guy let me quote you back one of your research notes. If greece goes, can portugal stay . I think it is going to be difficult for other countries as well. Fundamental Building Block of the common currency is that it is irreversible. We had pegs before the euro. It was never sustainable because it was not irreversible. If an arrangement can be reversed, it will be reversed. The euro was supposed to be forever. If one country leaves, why cant another . I think the question will come to the markets, whos next . It changes the nature of the euro. And we can never go back to what it used to be. It is not forever if one country leaves. Guy so, onto the question. Can portugal stay if greeece goes . I do not think there will be an immediate effect. If greece begins to recover after it needs, why with the electorate, why would the country put pressure on their own countries . The the policy of austerity is not working. They acknowledge the cure the europeans have subscribed and it has not worked. Francine im sure the germans would beg to differ. That is another conversation altogether. Mario is staying with us. Well be talking about the fed next. Guy for more on greece lets go to hans nichols. You spoke to president obamas top economists. What impact does he think greece s plight could have on the World Economy . How seriously is he taking . Hans he said president obama is dedicating quite a bit of time. What jason furman was getting at is the risk is unknown and they do not even want to take that leap into the unknown. Mr. Furman i do not think it in his experiment we want to run. I do not think we ever want to know the answer to that question. If they dont greece and the institutions, do not find it find a path forward, it would not just be terrible for greece. It would be a risk the Global Economy should not want to take justice things are starting to work or getting growth going or getting out of that crisis. We do not want to see what would happen. Hans now, he went on to say that there is a lot of work that needs to be done, that both sides on the technical talks need to roll up their sleeves and get to work. A lot of work it shouldve been done at this point should have already been done. He was very clear on that point. When we think what changed in the last 5, 6, 7 days, we were supposed to solve this on april 24 over the weekend at those imf meetings. That got kicked back hurt now we have a report that maybe greece can last until july. It is interesting to see how these deadlines shifting. Yet a lot of the Technical Work simply has not been done. Francine what about the possibility of the ecb curving that support for the greek banks . Hans this is a fantastic scoop on the frank for. The more interesting part of this is they are getting maybe some dissension within the Ecb Governing Council that their main after a unanimity. There may not be appetite. At least there is some dissension among ecb Board Members about continuing to increase ela. It was down two months ago maybe six weeks ago. Around the 60 million range, right . Now all of a sudden were in the mid70s. They have been doing it incrementally, but the idea that greek banks or anyone who landed with the banks could be punished and not have that as collateral that is something new. That gives you the sense the ecb might be trying to increase pressure on the politicians in greece to get something agreed to by may 11 may 12, whatever the deadline may be. Francine hans nichols there. Guy what else is on our rater . On our radar . Kaisa is the first to default on its u. S. Debt. It was unable to find the money. The companys founder indicated today that he has no pl;ansans to alter his plans stake in the developer which would save it from liquidation. Francine what could be the pharmaceutical industries greatest takeover this year. Teva could make a public bed as soon as today. Guy Rupert Murdochs european pay tv provider reported earnings. The company says the ninemonth revenue rose 5 as it signed up the most customers in the uk in 11 years. Sky also benefited from record growth in germany and austria. Francine we will head to zurich and her from the Credit Suisse ceo. Guy plus we will hear about the competition commissioner about last weeks antitrust decision against google. Francine we will hear from mary j blige produced in the u. K. Join us on twitter guy we want to know how many of these chinese mega cities have you ever heard of . Decisions on Monetary Policy such as the timing of liftoff will depend on how the Economic Outlook is involved with respect to the labor market and inflation. Guy welcome back to the pulse. That was billed on the speaking at bloomberg yesterday. Francine credit squeeze earnings Credit Suisse earnings due out today. We spoke to the ceo. Manus, is the market more interested in Wealth Management or Investment Banking . Manus the rerating has taken place. The trade activity has been good to the Investment Bank. The one good piece of news is the fixed income is up. That is what the market is going to focus on. When it comes to equities. Nowhere near what you saw the kicker for Goldman Sachs their equity business was up. To that end, i think the market is released. I thought about it. What was it . It was brady dougans last supper. There were no fireworks. There was nothing indigestible. But dessert is on the way in the form. What to do with wealth insurance and what to do with the Investment Bank . The market is relieved that Credit Suisse got a kicker from both sides of the market. Francine sounds like a medieval feast. Guy knoiwing t. J. , it could be an interesting one. Manus that is a really important point just before you ask the next question. Asked income is their number three in fixed income. They cannot say, do a ups. Ups was never in the position. They are stalwart in the equity position. Ripping apart the Investment Bank is not necessarily the immediate answer for them. Guy we will see. He is a man that likes asset management. I take your point about the fact that they have a decent presence. Lets talk about some of the spaces in which they have been doing well. Everybody is more and more nervous about the fixedincome space. Is dugan one of those . Manus he is. The two big stories are the Federal Reserve and greece. In the last 24 hours in the news you brought from the ecb that theyre thinking about putting back liquidity. I was trying to gauge because dugasn is a markets man. Where are the biggest risk for markets . Dugan in the near term, greece is one of the things that is preoccupying people now. I think in the longer term, the issue is going to be Interest Rate. When Interest Rates start to rise and the impact that is going to have. We have been a long period of low Interest Rates. I think a higher Interest Rate environment is owing to take some adjustment. So, in the longer run, that is the bigger issue. When that will actually take place is anybodys guess. Manus do you share jamie dimons concern about the volatility in the market . Is that something youd consider . Dugan i think a lot of the changes we have undertaken to make the regulated segment of the industry safer have wrought on changes to market structure. I think we have seen the impacts of that. I think some of those concerns are legitimate. Manus there is no doubt about it. Dougan comes from the bond market. He and jamie dimon probably thinking the same way about risk. Francine thanks so much. We are back with the Standard Chartered global chief economist. One of the big unknowns. It is not true. It is not an unknown. It is when the fed will raise Interest Rates. How much of it is priced in . It happens across the board. We know about things and then we are shocked when they do happen. I think the fed is communicating very clearly. It is preparing the market for a hike. We see the first hike in september this year. But i think the most important thing will not be the timing. It will be where do they take rates . How fast todo they hike . In the current economic environment, both in the United States and globally, i am not too sure the fed can hike aggressively. I think they have to be careful with the timing and the rate of the hikes. They should keep rates lower for much longer. Fed fund rates going to 2 by 2017. And staying there. The risk is if they do too much too soon, they will derail the recovery. There are many examples of Central Banks across the world who have done that. Then they regretted it. Guy what are they going to worry about . What other metrics they are going to judge how they proceed with . The economy showing strength right now but at the same time, the smoking gun of inflation is not really there. So why should he be hiking too much when there is not a problem you need to be tackling . Some people might say inflation would raise and they should be preemptive. I do not think they should. The risk of hiking too soon to fight a problem that does not exist guy goiloil prices are going to hike. Lets wait for inflationary pressures. The risk of hiking too soon, you end the recovery. The end of waiting longer, you can catch up later. A little bit and inflation in the current environment and the world is not going to be the biggest problem. Remember, 25 Central Banks have cut Interest Rates in this quarter. Things are not as robust as some people think. And the risk is a might end up doing too much too soon. We think they will not, but that is the main risk i have in my mind now. Francine so it is good to flag it out to the markets it to the fed if they are watchings. Thanks for joining us. Guy right. Out of egypt mr. Morsi has been sentenced to 20 years. Teva at a possible bid for mylan when we come back. Guy welcome back. You are watching the pulse. News from each of. From egypt. A case just been concluded related to the expresident mursi. Francine to find out whether or not he was guilty of inciting protesters across egypt in 2012. He was facing the death of the and he has gotten 20 years in prison. Guy more on that later in the program. Lets stay in the region but delivers Corporate News coming out of israel. Teva is preparing, we think, and unsolicited offer for rival mylan. In what could be the pharmaceutical industrys biggest takeover of the year. Elliott gotkine has more. Tevas bid could come out as early as today. Is it that far advanced . Elliott that is what we understand. Investors seem to think we are reaching towards the deal. They have been pushing teva shares up 2 today. We look at a sense of where investors and this is going when u. S. Begins trading. An Israeli Company listed in the United States. This deal were not only be tevas biggest acquisition. It would also be potentially the biggest deal in the pharmaceutical industry this year. We have seen a flurry of deals looking at how to cut cost and raise prices. Teva trying to offset a potential dropoff in revenues from its against selling drug which could face generic competition as early as this year, including from mylan. Francine thank you. Elliott gotkine and television. Coming up, the anticompetition commissioner. Hear what she had to say about google and gas pump. Gazpromm. Guy find us on twitter. Let us know your shop your thoughts on the show. Francine welcome back to the pulse live oin london. Im francine lacqua. Guy im guy johnson. Francine loreal reported a 14 increase in firstquarter sales. As a weaker euro helps compensate for sluggish growth in western europe. Guy sky reported a 5 rise in ninemonth revenue in a surge of new subscribers. Adding th emoe most uk customers and 11 years. In 11 years. Francine European Union leaders were hold an emergency summit to address the growing humanitarian crisis in the mediterranean after a boat carrying hundreds of people capsized off the libyan coast. The mediterranean, its drama tic. It cannot continue. We cannot accept hundreds of people die when trying to cross the sea to europe. This is why i have decided to call an Extraordinary European Council meeting this thursday. This is why i traveled to the region two weeks ago. The objective for the summit is to discuss at the highest level what we the eu institutions together canada must do to alleviate the situation n can and must do to alleviate the situation. Guy across the road, the competition commissioner vestager has been making her way. She is over in the u. S. They talked about the antitrust action that the eu has launched against google. She was asked what google could do to settle the action . Commissioner vestager they would not have to because google has now almost 10 weeks. I understand that, but if they were to make a settlement offer. What would be set as three . Commissioner vestager i would like to see competition to flourish, to make sure they have to agree to do something. Olivia right now what do you want google to do . Commissioner vestager not to give referential treatment to one of their own services. Let others showed what they can offer to customers. With their be a financial penalty in addition . Commissioner vestager what were interested in is for customers to get the best possible products and, of course, to have an innovative marketplace. The investigation you are pursuing over android would you consider that more serious, more challenging, more complicated than the when you have over google shopping . Commissioner vestager it is very complicated but it is very open. We have an indepth investigation. We do that with an open mind because even though we have very strong complainants, we should listen and look at the market. We should look at how things work before we make up our minds. Francine for more on wha