Welcome to the pulse. We are here in london. It is a busy morning. Francine we are just getting some figures. Confidence at 108. 6. It is a good indication of what germans are thinking after we had some dire pmi figures yesterday. Guy this is a survey of business in germany. It is 108. 4. The median expectation was 108. 6. The Current Assessment, 113. 9. Francine when you look at the breakdown, expectations are lagging. The Current Assessment is a little bit high. Lets look at eurodollar. Guy lets look at what is going on. A little bit of a rally on our hands. That was generated a little bit earlier on. 1. 0892. Francine fitez, futeex where Authorities Say the man who caused the flash crash work. Guy ryan. Ryan we are on futexs Trading Floor, where Navinder Sarao worked. He spent the better part of his 20s here. This is where he learned the abcs of training and honed his skills. Important to note is the period after he worked here. Specifically 2010 and the flash crash. That has captured the attention of u. S. Prosecutors. Futex has not been accused of any wrongdoing. No one thinks that he did anything wrong while he was working here. I sat down with the chairman of futex, the cofounder of this firm. Even though it was seven years since no vendor worked here, it is pretty clear. Almost as if he was here just yesterday. In terms of his trading prowess still commands a lot of respect here at futex. Have a listen. It can go one of two ways. If hes found innocent of the allegations, then he will be the world superstar trader the most famous trader in the world. If hes found guilty he will become just another infamous traitor. Ryan he was telling me that if you want to be a trader at futex, you are tested on three trades. One is math, another is psychology, and the third is passion. He said that navinder had all three. Paolo doesnt think that he singlehandedly could have caused the flash crash in 2010. Could he have been a factor sure. But it is impossible, he says for one trader operating out of his home to cause an entire market to collapse like that. Theres been a lot in the press about the somewhat austere lifestyle that Navinder Sarao lived. I asked about that. He said, yes. What did distinguish him from other traders was, he seemed to be trading when he was here and making the huge profits that he was for the sake of trading, just making the money, not to spend it. That really distinguishes him from most of the people that get involved in proprietary trading. Francine you had amazing access. You are the only reporter thats been allowed on the Trading Floor. You spoke to the former boss of rav, as hes known to the press. Give us a sense what the Trading Floor is thinking. Ryan i think they are very clear that they dont want to pass judgment in terms of a criminal case. He was very clear. They didnt have any contact with him since he left the firm. Based on the years that he spent here, what he did say was that he came across as a very honest very bright, very passionate very brave trader that was a leader to the other traders that were working here at the time. To a certain extent, remains a leader for people that work at futex. He was so successful, so dedicated, so modest at the same time. They dont want to get involved in deciding whether hes innocent or guilty. But they clearly dont think that he could have caused the entire market crash. The prosecutors arent accusing him of that. They are saying he played a significant factor in the flash crash. The sense you get is, he was had the kinds of things that make for a legendary trader. Now Navinder Saraos legacy will be decided by the courts first the extradition courts in the u. K. , and eventually, in chicago. As far as when he left this firm, he was very much someone that everyone revered. Francine ryan, thank you so much. Ryan on the trading for, the first reporter allowed their since the story broke. We will have more of that exclusive interview with the chairman of futex throughout the day. Guy lets get the latest on Deutsche Bank. They were fined 2. 5 billion for libor manipulation. What stole the headlines was messages between traders. They called the system corrupt. Elisa martinuzzi has more on this story. What do we know about what the traders were highlighting, and in particular, what was being highlighted by trader three . Elisa the pattern was one throughout the financial crisis there appears to the evidence that traders colluded to benefit their own positions. As you point out, one particular trader stands out trader three. For his role in manipulating positions that would have benefited his proprietary trading account. He was a proprietary trader specializing in shortterm derivatives. One the regulators have said is that he worked in concert with colleagues at his own firm, and also with other firms, to rig rates in his own favor, to benefit the positions he was taking on the market. Francine what is next for Deutsche Bank . Elisa this was a considerable legal challenge that it faced. It was the biggest penalty the firm has ever paid. But theres not much time for them to rest. We expect a big decision as soon as today on the banks biggest overhaul in the current management. The bank is considering a radical shift to its model, which may see it exit Consumer Banking entirely. [indiscernible] francine thank you so much. Elisa martinuzzi from milan, the team leader for all coverage to do with European Finance. Guy what else is on our radar . Comcast is said to drop its proposed deal with time warner. The proposed merger which took over a year to get approval faces opposition from the u. S. Justice department. Comcast could announce the news as early as today. Francine not a grexit but a tapering is the greatest risk faced by the economy this year. That is according to martin, who spoke to me earlier. The thing that worries me most is what happens when tapering ends. I think growth is going to be lower. Guy hsbc shares jumping on the news that they could move headquarters. Europes largest lender could be considering a move away from the u. K. Francine coming up, we will hear from martin sarao. Todays twitter question, is the Nasdaq Record a single cell . Guy we are talking about what is happening with greece. All of that is coming up. Back to the twitter question of the day. Francine welcome back to the pulse. Euro area finance ministers are meeting in latvia today for the latest talks on a greek deal. As they head into the meetings, german finance minister Wolfgang Schaeuble and Jeroen Dijsselbloem expressed skepticism that a deal would be done today. Hans nichols it seems that the bar is set very low for this meeting. Hans the bar is just to get a status report at this point. You mentioned frustration. There are really two pockets of frustration. One is with mr. Tsipras. Mr. Tsipras may be trying to shortcircuit what happened here in riga and cut a deal on the sidelines with angela merkel. In that meeting yesterday, he asked for a shortterm deal. That is one bit of frustration. The other frustration is that greece simply hasnt shown enough details. They havent done enough technical work. As mr. Muscovy c said, time is wasting. The overall issue is about the regime the present program to deliver reforms we can change. We need jobs and growth in greece. On the other hand, we need to think about further arrangements which could come afterwards. This is why it must be a coherent and Strong Exchange of views leading to a maturation in the process. Hans mr. Dijsselbloem said that it was incumbent upon greece and that greece is going to be feeling the pressure to cut a deal faster than european partners. Mr. Schaeuble seemed to express some confusion on why we are here. He said there wasnt going to be a deal and we should just enjoy the city behind me. Maybe i will do a little sightseeing. Guy that probably is justified. Talk me through whether these guys are talking. What communication is, how it is working, what efforts are in place to improve communication . Hans there is this back channel hotline between greece and its creditors. It includes jeanclaude junckers chief economist, mr. Paolo thompson from the imf, mr. Benoit coeure from the ecb. You have that on the creditor side. On the greek side, you have the state finance minister. You do not have Yanis Varoufakis. That is a question hanging over this meeting. Is the eurogroup relevant . Will the eurogroup stay relevant . And how much trust is there between Yanis Varoufakis and his 18 counterparts . They want specifics. They want details. They want progress. So far, they havent seen any of those three. Francine thank you so much, hans nichols from riga. We will have him throughout the day. We are not expecting much news but we will go back to him. Guy he wont be sightseeing. He will be reporting on what is happening. Francine the Martin Sorell story was interesting. He said hes been speaking to the officials and they are just getting used to the adf that a grexit the idea that a grexit is more likely than not. Obviously, emotionally, it might be quite damaging . I think weve come to terms. When i was in brussels, i got the impression that they are in the mind of, it is going to happen. Guy stay with bloomberg. Later on, we are talking to the mayor of athens. You can see that interview here on Bloomberg Television at noon london time. Francine the chances of greece missing its debt payment is as high as 40 . Only 30 of economists expect them to leave the euro. That will be an interesting conversation. Guy what are we doing now . Francine more from our interview with the employer of Navinder Singh sarao. Ryan chilcote has that interview. We have plenty more. Keep it right here. Guy welcome back. You are watching the pulse. Lets get more now from our exclusive interview with Ryan Chilcote. He just concluded that interview with the chairman of futex. Hes the former boss of the alleged flash crash trader Navinder Singh sarao. The man was always going to be the kind of person that i believed to be potentially legendary in some way in the future. The potential to be remembered he certainly has been one of the best, as an individual trader. Ryan now with what weve had, how do you reconcile that expectation . It can go one of two ways. If he is found innocent of the allegations, then he will be the world superstar trader. He will be the most famous trader in the world. If hes found guilty, he will become just another infamous traitor. Francine we will have plenty more from that exclusive interview with the founder of futex. That is what Ryan Chilcote was doing this morning. Guy in canary wharf, hsbc has started a review of where its headquarters should be. Lets get more with richard par thing can. The timing of this is interesting. What exactly are they saying . Richard they said that in the past few days, theyve had a Board Meeting to consider where they should be headquartered now. That is something the board has asked the chairman to do. There are many reasons for this. It is seen that the u. K. Has a levy on banking assets, and hsbc is europes largest bank. They have more than 2. 6 trillion of assets, mostly outside the u. K. If you have a levy on assets, that is what they are looking at, whether they should consider moving elsewhere to not have to pay that tax. Francine when are we going to find out . Are we talking a couple months, years . Richard it could take a while. They have said that there would be no time when they see a conclusion just yet. Theres a lot of considerations they have to take. A bank with 2. 6 trillion of assets is not going to be welcome everywhere in the world. There are only a few countries that would want to house such a sizable bank. Hong kong is seen as one potential area. What the Hong Kong Markets Authority want to take them . Guy can you give us a sense of why they might be wanting to consider that . We talked about the bank levy. Give us a sense of how onerous that is, how much money it costs hsbc to be based in london. Richard last year, they paid 750 Million Pounds toward the bank levy more than any bank headquartered in the u. K. If it were to move, it would obviously miss that levy but it would still pay a lot in terms of costs. If it keeps its u. K. Business, which i dont see why it would not want to, that would also perhaps still meet with u. K. Regulations. Francine this is a bank that has been grilled by a lot of nps over tax evasion from its private bank. We heard about the ceos own personal affairs in terms of where he has his bank account. Is this seen as a political move . Richard given that we have an election two weeks away, it would be read in that context. It is difficult to escape the politics of this. It is a coincidental thing as well. The fact that the election is two weeks away perhaps even strengthens their hands. The timing comes as we have their annual Shareholder Meeting today. This is something they would have announced on a day like today anyway. That timing is almost inevitable. Guy the sense is that this levy is only going up as well. Do you think that if one party were to win, it would change the thinking of the bank . Richard it doesnt seem as though any of the Political Parties have the stomach to reduce this tax. This is going up in either scenario. Just by how much is one consideration. The labour party have said they would hike it a little higher, as have the liberal democrats. I think it is a loselose situation given all the politics for hsbc. Francine richard, thank you so much. Coming up guy we are going to head to athens. Will greece be stuck in limbo for long . It seems to be the story at the moment. We are going to be in a situation where greece could end up the faulting within the eurozone. That seems to be a growing consensus. Does that lead to some sort of exit . What the Opposition Party be able to benefit from that . I dont know. Francine we also have a great survey on bloomberg today. We spoke to a number of economists. A greek default doesnt necessarily mean the greece has to leave the euro area. The chances of greece missing its debt payment is now at 40 . Take a look at the nasdaqs record close today. Does the record mean it is time to sell . Francine welcome back to the pulse live from bloombergs European Headquarters in london. Guy these are the Bloomberg Top headlines. Francine the nasdaq has hit a record closing high. Gains of ebay which Beat Estimates helped drive the benchmark higher. We can see gains extended today if microsoft and amazon beat earnings estimates after hours. Guy santander and unicredit have agreed to merge their Asset Management businesses. They will see the two lenders controlling one third each of the new business while the u. S. Buyout firms will own the other third. Francine profits at astrazeneca fell after currency fluctuations took a slice from revenue. Sales of two of astrazenecas bestselling products are also down as patents expire. Guy lets turn to one of our biggest stories of the morning greece. The country is seeing capital flow out of its banks at an alarming rate. 24 billion has been taken since november. One way to stop this would be separate got style capital controls. Will the greek people accept such bitter medicine . Greece is on life support. The greek people know it. They are pulling their cash out of banks in ever increasing amounts. 24 billion euros have been taken out of greek banks since november 2014. Deposits currently stand at 140 billion euros. 12 months ago, that was 160 billion. The European Central bank is maintaining liquidity with the emergency liquidity assistance program. So far, 75. 5 billion has been injected by the ecb. But greece cant agree with its creditors on the next course for its economy. Unless they do, the ecb triage could come to an end, leaving greece alone. That could require an emergency procedure, capital controls. Those controls could restrict the amount of money that can be withdrawn or transferred abroad as happened with cyprus in 2013. Banks stopped people from sending more than 20000 euros to foreign accounts and limited daily cash withdrawals to 300 euros. Without a deal, for the greek people, it could be bitter medicine. Francine lets head to athens and get the view from a member of greeces Opposition Party. Joining us now is a former minister of health. Thank you so much for joining us. Give us a sense of how worried you are that greece will have to default in the next couple months. Unfortunately, im very worried. Until now, mr. Tsipras doesnt seem to have the strength to do whatever it takes to keep us in the eurozone. Im very worried. Guy is more of the same Economic Policy being generated by the institutions and the prognosis that germany would like to see realistic . Can greece carry on with the same kind of austerity plan that has existed for the last few years . Mr. Georgiades our economy had started improving. The program made a mistake and we made many mistakes but our economy has started to rise up. Unfortunately, we had these elections, and syriza government came, and they tried to reverse the program. The program is a path, is a way to transform our economy, to modernize. You cannot go backtracking. What syriza is trying to do has brought recession again in the Greek Economy. Unemployment is rising again. The future is very has a mistake for everyone. Francine what is the solution . Mr. Georgiades the solution is mr. Tsipras to find the political strength to have a deal with the european union, with the imf, and the European Central bank as soon as possible. Even today. Fran