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tv   Countdown  Bloomberg  July 17, 2015 1:00am-3:01am EDT

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anna: german lawmakers get their say on greece's next the bailout. the ecb increases emergency aid and the eu moves closer to agreeing. janet yellen a bank of england governor signal the end of low interest rates, giving clues as to when the central banks could lift off. google gains in late trading. investors welcomed that. the search giant is now famed for its new projects. ♪
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welcome to the countdown. i'm anna edwards. we're a lot of news around greece. we get to that in just a moment. we heard the ecb yesterday that they were increasing liquidity. a lots about the me speak to the eu commissioner. that is an exclusive conversation and it takes place on this program. used to be in charge of latvia. then later we there's thinking that his vision for london's infrastructure later, we will be joined by a host of ceos. those companies release their numbers for the most recent quarter.
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the president of the swedish telecom giant joins us in just under an hour's time for his first conversation. those numbers are just breaking now. they're keeping their outlook unchanged. coming in just under estimates. let's get back to greece. finance ministers authorized a bridge loan to greece. that is according to the irish prime minister. it paves the way for a third of bailout that could keep greece in the common currency. let's get more with caroline hyde and hans nichols. yesterday he suggested a voluntary departure might have been better for everyone involved. willie back merkel's plan? hans: good morning. mr. shukla will back cam to get
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this bailout package rolling. here at a nine page letter laying out what he wants to do. he will clearly supported because it looks like there is some progress on the ground. you mentioned the importance of ela to increase that funding. up all th e way past 89 billion euros. perhaps more importantly for domestic political concerns they figured out a way to have some sort of bridge financing. it looks like they will announce that later. when all the parliaments signal they are moving forward on negotiations. we have seven billion and bridge financing. it pains me to say this we are just the beginning of these negotiations. the size of this bailout package, negotiations will be very difficult. what the role will the imf play?
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where will the european union play? what does greece have to do? these will be difficult and long negotiations. anna: yes indeed. what about the vote in the bundestag? hans: all indications are that merkel has a large majority. this is what happened, her caucus had a vote. they indicated they would support it. importantly, peter siebel who was the opposition candidate in the last election, former finance minister, announced his opposition. this support could not be as strong as some were expecting. in some ways, we are hearing that they think a debt rundown would be easier if greece left the euro.
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that is very similar to what he is saying. we have to have the bote. -- vote. it looks like it will pass. anna: caroline, let's come to you. it won't last forever, but when will the banks open? caroline: it is indeed. we understand the bank holiday has been extended to deliver these to sunday. monday will be the day the bank doors open. member, capital controls will still be in place. when is the to the businessman on the street, they are saying it doesn't actually help. when used be to the juror who gives you a heavy dose of sarcasm he will then say i could only get 50 euros at from the bank. no one has spent in my shop for
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three weeks. you then turn to the health food owner. she is telling me to ask me how i feel in september will my tax bill comes. i'm struggling to feed myself, i can't even afford to think about having children at the moment. these of the stories you are hearing. banks may open, but we are hearing it will not mean a relaxation. those could stay until he september. anna: how is the prime minister reacting to the dissent in his own party around the vote? caroline: that is what everyone is talking about. what about the government? whatever -- what about alexis tsipras? four of whom were in his cabinet.
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what has already resigned the deputy finance minister. what about the energy minister who opposed the bailout? what about the defense minister? what about these other politicians? there's been much talk about a reshuffle. the government has been weakened. he will continue as a minority government until a deal is struck. as yet, we have still waiting with baited breath if firings occur. anna: caroline, thank you very much. interesting bylines to the greek story is that we have seen m&a a really strong year for them. it seems the greek chaos is not putting off that trend. police in a relatively small deal announced that market -- we
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have seen a relatively small deal announced in that market. they're talking but cost energies they will achieve in that deal. this is the party business which is an internet gambling service. it seems despite the chaos we are seeing that wave continue. let's turn our attention to the asian market where chinese stocks look to be heading for the second weekly gain. you want has more from you hongkong. yvonne: stocks rising for a second day. it looks at their wiping out the losses we saw this week. formidable changes in the sentiment in the china market. shanghai composite up 1.7%. volatility seems to have eased a bit in the asian market. greece seems to be a non-issue
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among some traders. china also called down a bit. again, we could be and he knew begun on a good note in the asia-pacific region. be a 6100 we saw some polling continuing the gains we saw. some losses right now down a half a percent that is because of samsung. we'll talk about that merger later. a little better looking. let's like about china, rallying in a big way. we suck tech one of the big leaders -- we saw tech one of the big leaders. we are heading for that third weekly decline in oil prices.
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a lot of pressure for some of the oil exporters. we talked about these measures they have done to stem this route. it seems like things are working for now. some people still question the big money managers of the world about this debt fueled volatile market. in terms of the eighth shares some of the strategist we surveyed said they could be poised to rally about 20% by december. those valuations came closer to the cheapest level in 12 years if you compare them to global equities. these shares were unfairly punished during this rout in china. during this rally, it actually left than half. they say they still have better
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value. pretty steady on the japanese yen. we are about 1.5% away from touching a 13 year high that we saw at the start of june. we did see a lot of dollar strength here the last couple of hours. we heard janet yellen testifying to congress, saying a rate hike is likely at the end of this year. we are talking about a lot of things a head of that. we asee how things went this week with the kiwi taking a tumble. they expect the rate cuts next week. anna: a busy weekend. yvonne, thank you. coming up, governor carney says details of a rate rise could come at the end of the year.
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is the u.k. underestimating just how steep that hike could be? our next guest possibly thinks so. what about the timing of a liftoff changed? we heard from mark carney on a couple of occasions. he said the timing would be clearer by the end of this year. that is when the oil prices drop comes into effect. we will talk more about this during the program. #bankofengland. we will be back in a couple of minutes. ♪
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anna: welcome back. here are the stories you need to know this warning. angela merkel will seek approval for a bailout for greece.
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german lawmakers are interrupting the recess for a three-hour debate before voting at 1:00 p.m. local time yesterday the eu authorized funds for greece while the ecb extended emergency aid. chairs in google jumped by more than 15%. second quarter resulted beat analysts projections. sales minus revenue rose 13%. investors welcomed comments from the ceo that signaled she will bring more restraints to spending after years of investing in new projects. u.s. officials have said the murder of four marines was a potential act of domestic terrorism. the killer is also dead.
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he has been identified. the shootings are under investigation by the fbi. u.s. federal reserve chair janet yellen asthmatic medicare she believed the central bank can rate interest rates. over two days testimony she cannot point to a specific date. she said a premature hike could derail recovery. officials say they will let information guide their decision. staying with the central bank, we also heard from mario draghi, and mark carney. there will talking about how they see the current inflation environment. here is more from the central bankers themselves. >> recent developments in
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markets reflect greater uncertainty have not changed the assessment of a broadening of the euro area of economic recovery. a gradual increase in inflation rates over the coming years. mark: it would not seem unreasonable to me to expect that much monetary policy normalization begins, interest rates would proceed slowly. they would rise to a level in the median term that is half as high as historic averages. in my view, the decision to start the process will likely come into sharper relief around the turn of this year. >> they are envisioning it being appropriate to begin tightening policy. but what we have said is we want to have confidence before we tighten.
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anna: let's bring in peter to the conversation. peter: good morning. anna: let's like about the commentary we have heard. with regards to the bank of england. we are people whether their view of liftoff has changed this week. it seems the market has shifted his perception. peter: one of the things i find noticeable, we don't really get any time guidelines from yellen. i think carney was a bit more specific. when you look at where the market is pricing, i think that will come forward. i don't know what your twitter responders were saying, but that seems appropriate.
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anna: we will see what people say. carney was making the point that timing will become clearer by the end of the year. that is because the oil affect. that means you get a clearer picture of inflation. peter: he was clearly pointing out there are some headwinds still around for the bank of england. one of the things that is relatively high is the pound sterling. there are a few people web indicated that it is finally balanced. we could see them going for a hike. anna: even if early as this summer. peter: a hike is not coming then. but we might see that. anna: what about the pound?
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it is high against the euro after some of these comments earlier on. the divergence central-bank policy -- peter: particularly with the clip earlier about yellen. we have yellen and carney they are inching closer to the first interest rate hike the ecb will not even think about that in the contrast. it is fairly reasonable to see the dollar and the sterling are strengthened relative to the euro. anna: let's talk about draghi then. of course, a lot of focus on greece. how strong do you ask -- see the euro zone economy to be? peter: we have season indicators did a little bit. by and large the area looks in decent shape. if you scratch beneath the surface long-term indicators are
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turning around. that looks healthy, or healthier. we think this year will be a good year for the euro area. the numbers will still be small, but better than they were before. anna: you had a lot to say about it. he said he always acted on the assumption that greece would stay in the euro. that was never a question. did that surprise you? various parties in germany have been admitting that grexit was on the table. peter: i don't want to say he is disingenuous, but at the end of the day what else is he going to say? but let's face it, this is what he had to say. the two obvious things that are
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dragged out is the increase of ela and that he has been dangling purchases over them. these two things are fairly powerful. anna: he has been long calling for further integration. we did not catch the headlines as much as it would have done had been up and occupied by greece. he's talking about how the euro is not perfect, it is fragile. that is quite extreme for a central banker. peter: this is of the first report we have had. the various reports before. he has for years stressed the needs to be more corporation integration. so, let's face it, this greek episode has demonstrated mother
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abilities. anna: peter, thank you very much. 6:23 and london. they have warded off a foreign challenge. samsung planned merger was approved by c and t shareholders. let's get more from shery ahn who was in hong kong. what can you tell us? shery: good morning. after six weeks of a very public battle, the results are finally out. shareholders voted in favor of accepting the buyout offer from c&t industries. tensions ran high during the entire voting session this morning. both people that approved and opposed showed up with placards.
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one person shoved the head as he and the venue. samsung group did prevail with nearly 70% of shareholders of cheil's offer. they argued before that it was under value. the overwhelming approval underscores the corporate dynasties and bososts the country's track record. anna: what does this mean for samsung and the corporate governance? does the broader implications? shery: it definitely does. for samsung, it means the heir apparent will be able to solidify his hold. c&t holds more than 10 billion shares. samsung is undergoing a
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leadership transition. but when it comes to shareholder activism it is definitely a big blow especially after the rallies in the local investors. individual investors aside, for foreign investors and is been challenging to assess value. because of the influence, they have portrayed this vote as quite important for south korea recognition to prove its corporate governance is investor friendly. anna: shery, thank you very much. it is 6:26 here in london. more to talk with central-bank policy. we heard from mario draghi janet yellen, mark carney, and where they see their interests rates going. coming up is the euro nothing
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more than an exchange rate? ♪
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♪ anna: welcome back you're watching "countdown" here are the stories you need to know this morning. angela merkel will sink approval to start talks over a bailout for greece. german lawmakers are interrupting their summer recess for a three-hour debate before voting. that is 12:00 ukl time. they authorized a bridging loan to greece already. shares in google jump in more than 15% in after-hours trade.
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sales minus revenues rose 13%. investors also welcomed comments from the new cfo that signaled she will bring mroe restraint is spending. regulator boffin has said deutsche bank has failed adequately address manipulations. and expressed doubts about whether prices and key lieutenants to chief executive officer andrew james were unaware. that is according to a copy of a letter the regulators sent to deutsche bank. ebay will spin off its payments unit, paypal. paypal will begin its first trading on monday. the plan was announced last year
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to allow the two companies to grow individually. the u.k.'s record low interest rates could be on the rise. mark carney said a decision to become clearer at the end of 2015. mark carney: it would not be unreasonable for me to expect that monetary policy normalization begins and interest rates would proceed slowly, and rise to a level that is perhaps about half as high as historic averages. in my view, the decision as to when to start the process will likely come into sharper relief around the turn of this year. anna: joining us now jamie from bloomberg. simon derek is also with us. let's come to you first, the
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market seems to have shifted expectations around interest rate heights. what prompted carney to speak? >> we know carney likes to look at the data. what we have seen over the past few months is a tightening of the labor market. we've seen wages or to pick up a little bit i think is that feeling that the labor market is tighter. anna: is an all data driven? simon: i suspect that probably is. if you looked at it from a broader perspective it would be hard to argue why you are looking for rate hikes. we've a strong pound already. we have that right now. we got deflation, we have commodities, it seems to me they
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are large looking domestically. anna: what does it mean for the rate outlook? when debating with double happen? jamie: the important thing to remember is carney is but one of many people at the bank. but that said, we are seeing david miles come out and say he would like to see rises soonish. so, i think that the market even on current pricing interest rate will -- anna: he is stressing this turning point. some of the foreign oil prices we saw the year before will work out the numbers. he seemed to think things will be clearer than. simon: i suspect they won't be. i am certainly not arguing
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against what he believes will happen. the problem is these external factors. in particular, regards to inflation and the commodity pricing. what is driven those commodity prices is a large degree in a reaction to u.s. reports. if you look at the second half of last year, we had a rising dollar wghu -- which was due to tapering. and we saw falling oil prices. we had some recovery last year but now we see janet yellen hiking rates and the rising dollar. now we also have lower oil prices. my concern is getting to the end of the year and the things that caused them to hold off last year could allow them to hold off again. i don't think it is a symbol as that -- simple as that.
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anna: oil prices change the math. simon: a higher pound and lower energy prices. it seems to me he is a balance between what is happening in regards to inflation. anna: we have seen amazing moves and commodity currencies this week. now the suspicion is other central banks that are reliant on commodities will see moves in their central banks. can we really have a 2016 where the bank of england and the fat are hiking and of the only places doing so? are we really living in such a disparate world? simon: that is exactly the way it looks right now in the
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foreign exchange market. i do have that concern. it is generally -- if it is generally possible. you can have central banks going gung ho for rate hikes while commodity prices are coming under pressure. in fairness the interconnectedness is so strong that it feeds through very quickly. anna: commodity prices are clearly an issue. what about wages? remind is where we are on wages, and where we have been. where the talking what unemployment coming down. jamie: we are seeing an uptick. do you see any evidence of lower commodity prices? thatus far we have not seen
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anything like it. carney will interpret that as wage gains. i think inflation -- anna: wages will get going up even as oil prices are weakening. jamie: exactly. carney is not looking at what is happening right now. it is about how ways will do. i think that is what is propping both. 6:38 in london. we are asking has your view on bank of england's liftoff changed? do you think it is coming sooner as a result of mark carney's comments?
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@annaedwardsnews is where you can find me on twitter. the week that was for you was earnings, big banks reporting in droves. here is a wrapup of what we saw in various sectors. google tjhe -- their numbers managed to beat as well. ebay and intel also beat estimates. everyone loves the technology story. a big miss at goldman sachs. wells fargo came in with it in line with expectations. let's turn from corporate giants one of america's biggest exporter the popularity of hamburgers and saudi arabia is changing the culture in the kingdom and is taking a toll in the country's health.
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>> it is part of the weekend. across the center of town burgre -- burger joints like this one are jumping. it is a chain from california that first data saudi arabia and 2013 and recently opened a second popular spot. what is it about burgers? >> it is a global trend, especially gourmet burgers. saudi arabia has taken it to an extreme. these are couple of the burger builds. >> the counter is just one option in a highly competitive marketplace. >> you could have a different burger once a day and a week. maybe more. >> it would not be good for you. >> it would not.
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it would be one of those supersize me concepts. >> mcdonald's opened the first of 80 out let's back in 1993. as gourmet franchises attract more customers, growing saudi waistlines have attracted serious medical concerns. >> i expect in the next five years that the obesity epidemic will continue. >> he is a top obesity surgeon and is performing triple the number of gastric bypasses he was a few years ago. >> we see maybe 20,000 deaths a year. that is a huge number. >> data from several recent studies show that many saudi's are now obese. in a country where did that temperatures top 120 degrees seven height poor diet is only
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part of the problem. >> their lifestyle is mostly driving cars, not doing physical activity. >> he has not worked out in years and hopes stomach surgery will lose half his body weight. you think there is too much fast food and saudi arabia? >> yes. >> is of a problem? >> yes. they're bringing it from america. >> according to his doctor, the medical expertise used to treat them also comes from overseas. >> both a hamburgers and the techniques are coming from america. perhaps the best solution may
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simply be to make better choices. anna: i really hope it hasn't put you off your breakfast. 6:40 in london. new privatization funds will be central to any third bailout for greece. is that any investor outside? stay tuned. ♪
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♪ anna: welcome back. here are the stories you need to know this morning. angela was sick approval from the german parliament for a german bailout of greece. german lawmakers are interrupting their summer recess for a three-hour debate before voting on the bailout. yesterday the eu authorized a loan for greece with the ecb extended emergency aid.
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the bank of england governor mark carney said that the a look the uk's interest rate increase will become clearer towards the end of this year. the remarks come after david miles said the time is approaching to raise the key interest rates where they have been since march 2009. in which a wages rising. john dickson has resigned the u.k. retailer after spending three decades of the company. he will step down from the board immediately. in a statement, he said he has the opportunity to become a chief executive. we are just getting breaking news the imf. christine lagarde is speaking at a radio interview from watch it in. she's a degrees plan is not a
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viable. greece needs debt reduction, she says. she cannot given amount and is talking about the greek banking sector saying the greek bank closures were absolutely necessary. simon will give some reactions. she has made comments before where she suggested they're not on the same page as the germans or some other european leaders on the planet but together. this is quite strong wording, isn't it? simon: they are not even on the same book at this point. it is very clear that is with the christine lagarde we know they sent a debt study over the
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weeekend to the eurogroup. i think what this really does is set up a very stormy debate over the next three or four weeks. germany has made it clear that there can be no bailout plan without imf involvement. the imf says tehre has to be substantial debt reduction. we also know that there isfor haircuts. it is very difficult to see how this deal will be done. anna: is in their room there for a massive extension of maturities? do you end up with a situation that saves you as much as a haircut? simon: not according to the german finance ministry. they said that there is some space, but they cannot extended so far that it becomes haircut
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by the back door. therefore, if that is the situation, it is right difficult to see how a deal gets resolved. i don't think this story is over by a long shot. we could end up at another crisis in the last three or four weeks. in makes very clear this is going to be a key issue. anna: what is at the heart of this? why are some leaders on such different pages? they have to sell this to the individual populations, is that the key dividing line? simon: it is not a huge split between the imf in germany, he said quite clearly there is no way greece can continue on without massive haircuts. the issue is can you do it within the rules of the european union? it is quite clear you can't.
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anna: this is the line the germans keep saying, the rules say you can't do it. but the imf says it needs to be done. simon: the point is that the rules have to change or greece has to leave. it is one of the two. germany is making the point that the rules of the rules. i see why when they went back to the room i suspect that was a key point. anna: simon, thank you very much. let's move on, more on what is going on in greece. a privatization fund will be essential for any bailout.
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which assets will be included? is that any appetite for them? we look at some of the top contenders. >> the building behind me is the headquarters. the major greek company is a monopoly. we can split it into two. it is a fantastic privatization project. it will be one of the most valuable projects and the prospect of privatization. >> it is the jewels of the crown. theese are the major part of the privatization process. they are also interested, along
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with others. almost 20 minutes outside of athens there is a resort now it will come again for privatization. i hope it will be one of the major parts of the packthis is a look at what the market is capable of. you can see their objectives. these cannot be achieved, therefore investors remain limited. back in 2011, it was estimated the cost of the value of the privatization assets would be around 50 billion. this was not really an accurate number. now be coming back with the same
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number in the same estimation. i don't believe this is a realistic figure. the building behind me is the headquarters of the greek telecom. one of the major companies of the country. this building is likely to be included in the privatization program. it is totally liberalized. it creates a big benefit for investors. now behind me is an asset that is not percent definitely, and that is a problem. anna: let's take a look at some of the top stories. tim, good morning. where should we start? the pound is king. tim: it is a very simple story.
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the story has been a haven trade. no one likes the euro, the u.s. is sloping a bit, so the pound is king. anna: despite the fact that the fed is talking about interest rate hikes. the dollar is not strong. simon: it is probably exactly where was two months ago. i think you can make a valley that this is a much about safe havens as anything else. anna: this headline caught my attention -- casio -- casino cigarettes, and guns. tim: there's been a lot of research, one we wrote about today about how they outperform
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the market generally because people do bad things. suddenly that is not the case. the reason is because the casino trade has been decimated. anna: now we can make money and feel good about it. bad news for europe's producers. this is a peculiar story. tim: it is, but it is really bad news for producers in europe. traits have been hurt substantially and left an excess. what russia bought was the low-grade stuff, the fatty stuff use and sausages. anna: i think i will remember not to eat pork when i go to russia. coming up next we will be talking to the eu commissioner about some of these comments.
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plenty to talk about the next hour. ♪
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anna: christine lagarde calls the greek debt relief plan on viable. the eu moves closer to -- janet yellen signaled the end of low interest rates is insight. and google gains in late trading after profit and sales beat estimates. investors welcomed a greater focus on cost control. welcome back to "countdown," i
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am anna edwards. let's get up-to-date with what is happening on the equity markets. the asian equities session. we don't have those. we can bring those to you perhaps. the asian equity markets, the nikkei up a fraction. hang seng up by more than 1%. in limbo on the greek session, waiting to see with the german say on the package agreement put together monday. that is a picture across the equities in the asian markets. let's talk about the currency markets. a little bit of impact, very little movement in the euro cents today -- since today's trading session. today, we have a packed show. we are going to be speaking to a
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lot of corporate and political heavyweights throughout the day. first up, we have that eu commissioner for the euro valdis dombrovskis. that is an exclusive conversation on bloomberg. fascinating come verse eight and's -- comments with christine lagarde. and the first interview of the day, about london's infrastructure. later this morning, we are going to be joined by the ceo of ericsson as well as both of their companies which have been releasing their numbers. numbers from electrolux in the last few minutes. let's talk about telik=coms. we are joined on the line from
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stockholm by johanpresident and ceo. it seems your earnings have topped estimates. a rising sales picture seems to be behind of that. give us your take on how the business is performing. guest: we have a mixed bag as usual but slightly more positive than last quarter. we are happy with the progress in the nordics driven by the internet explosion. i specifically happened with the norwegians section, upping estimates to over one billion cree natio swedish krona. in sweden, we are seeing the consumer side growing steadily. driven by the -- leading the
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world in many aspects of digitalization. happy about that as well. more of a mixed bag in eurasia. a tough macro situation. fierce price wars in some of our markets. trying to balance that. organically, slightly week. back by m&a's. anna: mergers are topical across europe in your sector. the eu has expressed concerns. i thought the eu was keen to see more m&a taking place between telecom providers. what are the concerns that eu has expressed and how are you going to overcome those? johna;an: we are trying to
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stabilize our situation, which has been tough career we are doing well organically. we are too small to pick up the investments and improve the customer experience. that is our main proposition. the to the various stakeholders. we have a very constructive dialogue. this faces a lot of questions and we respect that. we stick to the previous estimate this will be approved during the second half of the year. anna: give us some insights into the scandinavian telecom market and other places you operate. in other parts of europe, we talk about those concepts a lot. telecom companies providing broadband tv. how much is that driving parts of your business? johan: let's take our crown
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jewel in sweden. we are seeing growth across tv, broadband, mobile. combining these together in a better customer experience is an opportunity we see across the markets where we have this can be ability -- this capability. we are trying to stay away from what we have seen in other markets, a lot of discounting to customers. that is working well in some markets. we see a great opportunity moving this and more markets. anna: recently spotify raised some money, the music streaming site. why did you decide to buy a stake in that business, why did that make sense? johan: we are two company based
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in stockholm. we have had a long history and we wanted to work into collaboration. media and advertising. we had a partnership that will benefit both companies. we decided to invest as a consequence. excited about that opportunity and it is progressing well. anna: do you have ambitions to be a fully combined business? johan: and no. this is a step for our innovation agenda, moving the industry closer to where the customers are. they are in the internet space. we need to step up and speed up to deliver on expectations. this is a great way to work with a global company with expertise in the field. anna: thank you very much. president and ceo -- let's talk
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about some of the breaking news we are getting. electrolux, numbers coming through. they are saying they will vigorously contest the doj efforts to oppose their ge deal. you'll remember the doj raised objections by electrolux to buy ge's appliance business. in terms of the underlying numbers, net income came above estimates. 608 million swedish crowns. a lot of folks on the story surrounding that. euro ministers authorize a bridge loan. it paved the way for a third a lot that could keep europe's most it didn'ndebted nation in the
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full. christine lagarde has been speaking out about this. a voluntary departure might be better for everyone involved. put that in context with what lagarde has been saying. hans: they both agree that to have a viable plan for greece you have to do something about the mountain of debt the greeks own. they disagree on what sort of plan you should have. mr. schreiber is hinting it might be easier to do outside the eurozone, a temporary grexit. christine lagarde says the plan is categorically not viable. she says we are on the beginning of an interesting adventure. speaking on french radio moments ago. what we have from metta mudguard -- madame lagarde is her casting
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doubt on the agreement they thought they had hashed out. the finance ministers and heads of state. it looks like no one has asked the imf whether or not they are on board. metta mudgadame lagarde is giving us an indication she has doubts. the vote looks like it will pass. the bridge financing looks like it will be out the door sometime later today. and the ecb providing relief. we are beginning to see just how difficult it is going to be, these overall negotiations, once everyone gets back in brussels. we need to mark lagarde down as a skeptic. anna: what about the votes? is that likely to pass in the bundestag?
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what are german lawmakers going to say? hans: most people speaking on tv have indicated they will vote for it with their noses pinched. they are not overly excited about it. here is a quote that gets at how difficult it is going to be. everyone here in germany is bracing for longer negotiations. we don't know what the outcome of the negotiations will be. a strong indication that we have difficult days ahead. it comes down to what you do about the greek debt. the imf wants to see some sort of haircut. the germans say a haircut is fine as long as they are outside the eurozone. anna. anna: thank you.
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in the meantime the banks are let's go to caroline. the ecb roads to the rescue with more emergency liquidity assistance. any sign the banks will be opening soon? caroline: 900 million euros flowing from the ecb. we are hearing reports, imf and christine lagarde added that, banks will open monday. the bank holiday has been extended to sunday. the banks may open, but capital controls are not being lifted. people on the street here in athens and across greece can only get 60 euros out maximum per transaction. this is going to be a burden on shop owners i have spoken to. the jeweler, filled with sarcasm hearing 900 million euros is coming from the ecb.
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they all know what yeley funding is. everyone knows who mario draghi is in greece. he said, we cannot get more than 50 euros or 60 euros. people haven't been spending and my shop for the last three weeks. clearly a concern. we are starting to see the limitation of some of these reforms since the vote on the bailout package. we are seeing already vat hikes. i got my hotel bill 23% on food and beverage rather than 13%. implementation is one of the key questions. some of the votes are already playing out for those living in greece. back to you. anna: thank you. they know what the ela is down in greece. i even heard a conversation about that sustainability in my local supermarket. let's get back to the chief currency strategist at bny
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mellon. we have talked about greece, the u.s.. the broader story around the eurozone is one mario draghi was at pains to point out. he was talking about the underlying growth story. as many have pointed out, there are reasons to be moderately cheerful. guest: i think that is true. in part, i would argue it is at least a little down to the good job of the ecb has done. astonishingly good job. three days before the greek election, it has done its job. helping to ensure we have a competitively priced euro on the world stage. there is no question to me come over the course of the last 12 months, european central bank's --
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most of what they have done has been directly aimed at achieving that. when mr. draghi kept talking about the exchange rate. here he are 28% lower. thank you very much, indeed. that is part and parcel why we have a slightly healthy economy. anna: thank you. still to come on "countdown," another banker has joined the billionaires club. why lloyd l bloemfontein's wealth has served. -- surged. ♪
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anna: welcome back. 7:18 in london. angela merkel will begin talks
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about a bailout in greece created lawmakers are returning to berlin for a three hour debate before the vote at 1:00 local time 12:00 u.k. time. the imf chief christine lagarde has said the greek accord is categorically not viable without a debt reduction. janet yellen has made it clear she believes the central bank can raise interest rates this year. over to days of testimony, she did not point to a specific date for a rate rise and said a premature hike could derail the recovery. fed officials say they will that the latest data on employment guide their decision on when to raise rates. staying with central banks, we also heard from ecb president mario draghi on wednesday
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talking about how they see the current inflationary environment can read here is more from the central bankers themselves. -- from the central bankers themselves. mario draghi: recent developments have not changed -- a gradual increase of inflation over the coming years. jay carney: it would not be unreasonable to expect that once monetary -- interest rates would proceed slowly and rise to a level about half as high as historic averages. in my view, the decision as to when to start such a process will likely come into sharper relief around the turn of this year. janet yellen: they are
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envisioning it being appropriate to begin tightening policy with lower inflation our deked if. we want to have reasonable confidence once we began because inflation over the medium-term will move back to 2%. anna: that is what the central bankers have been saying. we continue to get commentary coming through surrounding the agreement made on monday for greece. france's finance minister speaking saying it is not enough just to seek efforts from greece. the debt burden needs to be eased. he agrees on debt options. he agrees the greek debt burden needs to be eased. it seems the french and the germans, not quite on the same page. simon: there was a split between
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staying in or out of the euro with regards to debt sustainability. the actual argument, do you need haircuts, germany would agree with the imf. france believes it can be done without nominal haircuts, by massive extensions. given what we have heard from the german finance ministry that seems to me seems to be the big story, the french german story. that just highlights the split. anna: that is because the germans have said no haircut. we are hearing from a number of central bankers. not united. the fed and bank of england, looking at raising interest rate. the ecb nowhere close. different thoughts. earlier, we talked about the commodity currencies and what is going on elsewhere. we have seen that thrown into
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stark leak. you have other central banks in mind. syme onimon: south africa, 2013. the rand was one of the fragile five that came under pressure when tapering was under discussion. we have commodities under significant pressure. the south african rand trading close to its all-time low against the dollar. i'm starting to wonder, if we see a further decline in commodity prices the rand tracks closely over the long term, will we see another sharp move down? is there interest rate support for the rand? yes, there is. but it is a currency that tends to learn 13-14% per year over the past five years. not the level of support to prevent a substantial weakening
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of the rand if we see the commodities come back. the fact is when it moves, it really does moves as history has shown. anna: thank you. simon joining us from bny mellon where he is chief currency strategist area that brings us to our twitter question. has your view of think of england liftoff changed? idea of comments from mark carney with regards to when we are going to see an interest rate hike from the bank of england. we saw mark carney, heard mark carney getting his comments around when we will get more clarity. the timing might he come clearer by the year and. that is because some of the oil affects might drop out. welcoming a new billionaire to the billionaires club. lloyd blankfein.
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his net worth has surged. let's bring in bloomberg billionaire's reporter who has been tracking his rise. devon, thank you for joining us. there are a lot of superrich ceos and finance but few billionaires. how did this happen? devon: it comes down to three things. lloyd was senior partner before goldman sachs went public and it was one of the last banks to go public. in 1999. it made partners extremely rich average of $63 million per partner. he has received a lot of stock. unusually he has not sold the stock. the stock has done really well. anna: he is a self-confessed
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fatcat, he has used that term before, but also talks about his humble beginnings. jp morgan's jamie dimon is also a billionaire. survivors of the financial crisis. devon: they came back bigger and better than ever. jpmorgan stock has done well. he had a wind fall. over time, that does well. they bought real estate. they have diversified. it comes down to their management. anna: thank you for joining us. fascinating story we will get that out on twitter. devon from our billionaire's team. with greece still on the verge of putting together its financial plan for the future, the topic of grexit on many people's lips. an exclusive interview with
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valdis dombrovskis. we will get his instant reaction to comments from christine lagarde. ♪
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anna: it is 7:30 in london. here are the stories you need to know. angela merkel will seek approval from the german parliament to start talks over and 86 billion euro bailout for greece. lawmakers are returning for a three-hour debate the form voting at 1:00 p.m. local time, 12:00 p.m. u.k. time. yesterday, the ecb extended 900 million euros to emergency -- in emergency aid to the banks. christine lagarde has said the accord is not viable without debt reduction. shares in google jumped as
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second quarter results beat expectations. sales minus revenue rose by 13%. 14.4 billion dollars. investors welcomed comments from the new cfo who signaled she will bring more restraint after investing in new and expensive projects. ebay will officially spin off its pay unit, paypal. paypal will begin trading monday. the plan was announced last year to allow the two companies to focus on growing profits individually. let's get back to the news around greece. joining us live from brussels, valdis dombrovskis the vice president of the european commission. great to have you on the program. i want to get your reaction to the comments from christine lagarde. she said what has been put
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together over the weekend is categorically not a viable without debt reduction for greece. how do you respond? mr. dombrovskis: right now, we need to finalize the decisions to start the bailout program for greece. once the decision to start the negotiations is taken, institutions can start negotiating memorandum of understanding with greece. of course, debt sustainability issue is one of the issues that is going to be discussed during the drafting of memorandum of understanding. anna: is it your understanding that a debt haircut, a reduction in the amount of debt owed, is a possibility during the conversation? mr. dombrovskis: the euro summit
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decision set a certain framework for greece. basically, what the summit said they put back on the table the offer from november 2012 when they agreed to look at the greece debt conditionality after the successful completion of the previous deficit program. we know it was never successfully completed. the offer was never on the table. you have countries looking at the greek debt. the euro summit clearly concluded it would not agree to the nominal haircut. anna: do you think we can reduce the burden of debt for greece using other measures? extending maturity? the germans have talked about it
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as a haircut by the back door. is that he more likely path? mr. dombrovskis: there is some -- maturity it interest. if we talk about debt, it must be said debt that eurozone countries provided to greece is currently actually not waiting on the greek economy. it has a grace time. until 2020. it means this is not a really now waiting on the greek economy. if you look at the debt servicing costs of greek debt they are actually lower than for example for italy or portugal which nominally fell to lowered debt to gdp ratios.
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anna: the germans say a haircut is not possible. they say the rules prevent it. is that the case? you think the rules need to be changed? mr. dombrovskis: this is also the conclusion of the euro summit. the heads of all eurozone countries. the conclusion of the eurozone is there will be a nominal haircut. anna: could you say that again? mr. dombrovskis: that there would not be a nominal haircut at the conclusion of the summit. anna: there would not be a nominal haircut. can we talk about the bridge financing? how far down the road are you to agreeing on the 7 billion euros of ridge financing. is it 100% there? mr. dombrovskis: agreement is in
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principle reached. right now, we are ongoing a formal procedure which will be finalized at noon today. which means we can be 100% sure after this formal procedure is concluded. political agreement is reached, so i would not expect any surprises. anna: how are you going to ensure non-euro countries do not suffer as a result of this facility being used for bridge financing? mr. dombrovskis: this was an issue raised by non-eurozone countries. there is twofold protection. first, smp and profits which guarantee the loan are put as a collateral for the loan for non-eurozone countries.
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also, more general, it is basically lending against the guarantee of the eu budget. it means if the payments are not made there is also a possibility to withhold future payments from eu budget from greece and also in this way to recover this loan. it is basically this possibility to with hold the funds from the eu budget. an extra level of guarantee for non-eurozone countries which is collateral with smp. anna: do you see the greek banking sector opening up next monday? mr. dombrovskis: this is a decision for greek authorities to take. in any case, european commission is ready to provide technical
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assistance as regards capital controls and lifting of capital controls. anna: we will wait and see. from your perspective as a former leader of latvia where we saw a great deal of austerity and acted, what has the reaction been from the people of latvia? a lot of reaction to debt haircuts and other debt sustainability measures for greece? mr. dombrovskis: certainly there are questions about how it is going to affect latvia. whether the loan, is really secured. the point is, what is being raised in latvia, the average wage and pension in latvia are substantially below the levels in greece.
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basically there is a feeling it is not fair if latvia subsidizes a greek alone because greeks are more wealthy. latvia's government is going to take this decision on starting the mandate today. i would expect a positive decision. anna: thank you for joining us. valdis dombrovskis european commission are joining us. let's get more on the greek crisis. paul gordon is in frankfurt. mario draghi came out pledging further funding. how significant were those comments? paul: a couple of reasons. one is that thextra 900 million euros, it is not a huge amount of money.
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it will help a little bit towards getting banks able to open their doors, but it also sends the signal the ecb is ready to move forward. the ecb will play its part. they expect to get their own debt repaid july 20. it is not uncontroversial to say greece needs debt relief. you heard valdis dombrovskis saying that relief needs to be discussed. maturity, interest rates could potentially be discussed. they will be discussed and mario draghi said in needs to be discussed. you can expect that to dominate the discussions over the next few days. anna: draghi was quite clear this was part of the flaws in the euro area structure. he was admitting a lot of fell
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ability for the currency. he said it was fragile and vulnerable. amazingly which from a central banker. paul: he turned attention to the so-called five presidents report published in late june, which was kind of buried by the greek crisis. he is trying to move things on. we got over the worst of it. now, fixed the fundamental flaws. the report talked about eight joint treasury being a possibility within 10 years. this is one of the keys. a monetary union without a fiscal union is going to struggle. we have had this crisis and we will have more until these problems are solved. he is saying politicians, sort this out. the monetary union in particular is not delivering what it could if it were working properly. anna: thank you very paul gordon
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joining us from bank for committee 7:41 in london. let's get a view at the markets. ulster mccaig joins us here on set. good to see you this morning. it seems as if we are set for a lackluster start to trading. maybe a bit of a positive uptick but not much. i we kind of in limbo until we see the next leg of this story develop? ulster: we have seen the traders come in. there has been a stagnation on the back of uncertainty about what is going on with greece. some of the actions incorporated by the chinese government raise an eyebrow or two. the fear of jail time for short-sellers, not something we
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have seen replicated over here. brings into question how much of a free market environment it is over there. these aspects have dented in the enthusiasm. i think it all adds up to a lackluster environment. anna: indeed. talking about china, comments coming in. shanghai composite up 4% today. interesting, getting comments that the china agency set to have 2.5 trillion yuan on hand to support stocks. amazing moves designed to support stocks. telling people they are not allowed to sell stocks. so blatantly come out and say they have the last pile of money standing by to support the stock market, it is phenomenal. alastair: when you consider some of the other aspects thrown into the mix. interest rate cuts.
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the ability of investors to utilize assets as far as their properties are concerned. we have seen strong-armed tactics for brokerage firms. we have seen managerial positions being restricted on what shares they can sell. all of this should see an equity market that is quite frankly flying. those of us who have sat through the last decade or couple of decades worth of action maybe the hairs on the back of our neck are standing up. when all these restrictions are taken away, how much of a rush will there before the exit door? anna: look at what the authorities are doing. it reminded me of some of the raised eyebrows when people talked about quantitative easing. as we are looking ahead to where
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the greek story goes, because that is preoccupying thought, there is the feeling, report that perhaps the banking sector could be open monday. christine lagarde said that this morning, it looks as if it is going to open monday morning. are we in for another rocky road depending on how that goes? alastair: we have seen a lot of commentary discussions being made. fortuitously in the last few weeks, they have created sunday markets. it is a good indicator as to the volatility of action. notwithstanding decisions made 10 minutes before the monday market opens. anna: exciting. alastair: you have to see capital controls eased if nothing else. 60 euros on a daily basis is an untenable situation. the commentary in regards to the ela tapping up funding should
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point to that. i do not think they can completely lifted the lid on that. there is a fair amount of fear out there. you will see an aggressive rush to the banks to withdraw funds. an easing of restrictions rather than the doors being flung open. anna: we talked about commodities and where oil prices are heading. will that have a bearing on where markets go? does that mean he ftse underperforms the rest of the markets? alastair: there was commentary from mark carney about how he saw the inflation rate going back to 2%. the ecb progress with iran, a fresh supply of oil to the market. the inflationary aspects or deflationary aspects, you have questions about how optimistic the timeline is.
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interest rates starting to creep up, the turning of the year. currency markets are not necessarily reflecting that optimism. you have to expect over the coming weeks to see more optimism towards the u.s. dollar. maybe more questions about those countries cutting rates. the canadian dollar, for instance. it will be an interesting mix. anna: it is 7:47 here in london. european equity markets look set for a positive start. i should look over at the futures picture. the ftse future suggests things will look flat. a live shot of london. a big week for earnings. after the break, we will look at that. ♪
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anna: welcome back. here are the stories you need to know. mark carney said the outlook for the interest rate increase will become clearer towards the end of the year. the remarks came after -- where it has been since march, 2009. all cited improvements in the economy with the latest data showing wages rising at the fastest pace in more than five years. shares in google jumped by more than 16% in after-hours trade. profit before certain items was six dollars per share. sales minus revenue costs rose 13%. investors welcomed comments from the new cfo that signaled she will bring more restraints to spending after years of investing in new and expensive projects. let's get more on the google
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story. we are joined by roderigo. costs and spending are a concern for investors and seem to have been a big theme of the earnings report. how did they perform on that front? roderigo: the most interesting metric people were looking at was operating expenses. the increase is lower than it eu's to be. well expenses are still going up, they are not going up as they used to. that is what investors were expecting. anna: if you were moving fewer self driving cars. -- fewer moonshots, fewer self
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driving cars. rodrigo: something is definitely happening there. we don't know what. we cannot spend that much on moonshots. anna: think you very much. minutes away from the start of the european equity trading day. let's recap some of the comments. the european commissioner earlier. we had a great conversation about differing attitudes about the greek story. he said earlier, debt sustainability is an issue for the talks. all of this came on the backs of christine lagarde saying the deal was categorically not viable. we are getting a bit more
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clarity as we get further news flow around who is allowing what in terms of debt. "on the move" is next. jonathan ferro join me on set. take us through what you are covering today. germany and their views on greece, one of the big topics. jonathan: was remarkable, the same thing we were talking about. prime minister alexis tsipras not agreeing but voting yes anyway. the german finance minister, voicing his doubts about the agreement. set to vote yes again. a seven day winning streak. quite a bounce despite the political noise. anna: what about charts that matter?
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jonathan: the pound will most certainly be on the charts that matter. mark carney pouring gasoline any debate and throwing it on the fire. no one talking about a rate hike. no one still is, but at least the debate has started again. anna: more clarity. jon thank you very much. that is it for "countdown." see you soon. ♪
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jonathan: good morning, happy friday. we are here in the city of london. let's get to your morning brief. awaiting germany's verdict, greece's bailout plan was before german lawmakers today while christine lagarde calls it untenable without debt restructuring. looking to lift off, janet yellen and mark carney signaled the end of low interest rates is in sight. google stocks surge in late trading after profit and sales beat estimates. those are the things i will be talking about the next few
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minutes. futures dead flat dax futures push higher. that is on a seven-day winning streak. that is almost 10% over the last seven trading days alone. when you cut out the noise coming from greece does look of the german equity market it is been quite a performance. i want the start of the bond markets. equity markets were driving higher despite the noise and the action coming from greece. it matters politically, but it is not matter to the bond market. german yield is low. like ways on the periphery, they had southbound by two basis points. that spread has got really narrow app


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