Is off today. Euro area pmi coming in at 54. 2. Slightly below the estimate. But i think within the plus and minus pmi, rising to 54. 1. I check on the light side. Not too excited about that. Eurodollar is softening a fraction. It is still sub 110. On change. Softening a bit. As the data his of the screen. A fraction negative. As the data hits the screen. Lets get more from hans nichols. He joins us from our land. The number is soft. He joins us from berlin. Hans that is the point. It is expanding. It is lower than what was expected. You look at the spain number and it was 57. 3 up from 56. 2 in february. We may hear about diverted economies. Growth in spain and italy. And people will take a very close look at the numbers in greece and whether you are you can accept these other points and whether or not greece is swept excuse me, slipped into reception recession. Our tax receipts were way down in a january and february. They have seen capital flee the country. 25 billion euros in the first quarter. In some ways, an indicator of how the economies are diverging and what is happening in greece and adopted proposals on what expansion every track that are on. Guy . Guy lets talk about greece. Imf payment and that meeting with Christine Lagarde this week. There is an awful lot going on. Pull the parts together for me. Hans the meeting matters in terms of the optics and if there any firm agreements to come out. Just going there is not seen as being in europe. Just visiting, merkel has been there. The april 9 payment is due to the imf over the weekend. The greeks and imf said they would make that payment. The big date everybodys focused on is april 24. Thats what year invites farkas yanis hardfought this is setting the deadline. Finance ministers are meeting on april 24. Thats when varoufakis set the deadline. Guy sometimes there is a risk to scratch our ahead. 279 billion euros is the number. Look at it again as scratch my head and wonder how they came up with that number for world war ii reparations. Hans they had committee looking at it. And they looked at archival evidence as they say. The number is 278. 8 billion euros. 40 of germanys gdp print to give you one example, this loan that has been well documented during the world war ii era for 450 million right marks and that is 10. 3 billion euros. That gives you a sense of what greece multiplier effect. As they keep saying here they issue has been litigated and decided. Guy . Guy hans nichols running through the data and the rest of the week. Lets stay with europe. His bridgewater associate is the Worlds Largest hedge fund he bets against the euro. Good to know what is doing right now with his money. Lets figure out what is happening here in your. We are joined by fidelity worldwide head of equities. Good morning. Glad to see you. Better to visit the euro is that last years trade . Guest what is the thing interesting about the way in which the currency moves or involved is is it has been very fast, very quick. And i think what carried us up to this point has been a deviation in expectations about rate. At improving conditions in the u. S. And in europe and that has driven it up until now. I think sort of that against the euro from here and to really by conversely that against a strong during the dollar very heavily. More structural factors if the u. S. Is becoming more independent from an Energy Perspective and basically going to be exporting less of the worlds resolve does reserve currency . And what it means for the success of china . Guy nothing to do with europe . Paras anand exactly. It is a zerosum game. You have to look at one of the most powerful elements. To sit here today there are signs the european rail economy is recovering and a stabilizing and quantitative easing that couldve the perspective, an interesting perspective that easing ends earlier that people are talking about. That in itself could mean perhaps the Alliance Chair other liions shar of the jobs have met her. Eguy it is getting better. The european number looks pretty good. Well north of 50. The spanish number approaching 60. How solid is the recovery . We will talk about stock evaluations in a minute. From a topdown point of view, if youre sitting in the world and looking at your and the recovery is starting a europe and the recovery started, how quickly is it . David binks varoufakis paras anand i would characterize it as uneven. A country, certainly local economies outperforming others quite significantly. One of those real reminders. You get investment commentators that link europes situation to japan. We are seeing economies that actually suffered quite badly like spain and ireland producing some the best Economic Data right now. Other economies like italy and france, relatively lackluster. Investors looking at europe need to look beyond just a recovery and domestic demand. Guy you have to be more specific than that. Paras anand i would argue that. Guy we talk about the stock valuation and m a. Glad to see for the moment. Paras anand. He will be back in a moment. What is on our radar . 2 Central Banks left of their rates unchanged. Rba kept rates unchanged. People were expecting a cut. Indias Central Bank Left it on cut. Yet to pass on the previous cuts to customers. It is a problem with the indian Banking Sector at the moment. We are talking about much more as we head toward the back end. Oil has games, the biggest rally gains in two months. New york trimming a 6. 1 surge on monday. Outweighing forecast for u. S. Crude supplies. Saudi arabia is expecting improvement in demand. And George Osborne will head back to labours claimed that his party has made a middleclass families worse off. In a speech today, he will say the previous Labour Government oppose taxes worth almost 2000 pounds a year in world terms. The parties clash on tax policies a year in real terms. The parties clash on tax policies. The latest polling showing the 2 parties remain net in that ahead of the elections. Internet neck and ne ahead of elections. Fedex buying the strugglingck dutch tnt company. Well more on the deal when we come back. The to a question of the day are you working companies cheap . Are we going to see you as Companies Look in and say, you know what, with europe and the way it is an a recovery gaining traction is it time to pull the trigger on the deals . We talking straightforward economics. We will be back. There was your. Well see you in a moment. Guy welcome back to the pulse. We are streaming on bloomberg. Com, that new bloom bloomberg. Com. We are on your phone and tablet. Tnt express is off 30 . The struggling dutch Logistics Firm has been bought by fedex. Lets get the details with caroline hyde. Caroline up goes the share price 31 . The offer is 33 to be precise. 1 3 premiere. This time being offered by fedex. Just two years ago, it was indeed ups that wanted its hands on it. Quite amazing, points of view by the management. Saying it is a much made in heaven, but the deal is eight euros a share it is all about fedex. Wanted to grow itself within europe. A key pillar to their growth plan by the chief executive of that expert he was saying i want to boost profits by 1. 7 billion. That was back in 2012. How would he do it . He would look into europe. They said buying this asset make sense. They do not have that many overlapping synergies so they are over to reduce overall jobs they have to cut and focus on gaining scale. They said the deal would close by the first half of 2016. An interesting aspect to this is antitrust. And tnts turnaround. Back in 2013 is when the deal with ups unraveled. That is when the American Company wanted to get its hands on tnt express offering 9. 5 euros per share, even more than fedex currently offering. And a deal unraveled because of antitrust issues. I felt the competition would be crept if ups was coming in. They said is that of having to replace there would be 2. David brink, the president of fedex said it asked competition and a new player to europe. They feel they will get the deal through regulatory issues and get it done by the first half of 2016. We want to see how the turnaround of tnt express continues for it has 4 straight reductions in profits for the past 4 straight years. Not just reductions but 4 a will losses and they are trying to turn the company around an upgrade the system. We will hear more with fedexs help. They call it a perfect fit. Back to you. Guy caroline, thank you. Caroline hyde on that transaction. Part of our twitter question whether or not European Companies with the recovery are getting a plays a place and you see what is happening with the equities story. Are they looking cheap . As this economic story starts to gain more traction. Lets ask that question now to our guest with us, paras anand joins us from fidelity. Good morning. Welcome back. Trade deals. Web seen the past we have seen the past year and have been in versions and all kinds of reasons for you are we getting into a new phase of m a . 4paras anand i think we are seeing a continuation of two types of Corporate Activities that we have seen kick off over the last 18 months. It is a cycle that has a way to run. The good news is we are i would say in the early phase of the cycle. The two types of deals are straight out acquisitions. The straight acquisitions are going to receive a shot in the arm why a move in the currency. The euro depreciated as much as it has will strengthen the power of u. S. Companies. The other types of deals are what you could describe as Corporate Restructuring or renewal deals were companies have basically taken their businesses and reshaped it down, selling them off to divisions doing asset swaps with other companies, and focusing on core activities. I think both of those types of activities continuing over the coming years. Guy the first one is dependent on the weak currency. If we see the currency picking golf, you think it would slow down . Paras anand i dont think it is entirely dependent but the other factor is at the moment, a very unusual point in the Business Cycle work corporate Balance Sheet are very un leveraged. Many ceos are saying i cannot see this brought a best broadbased upturn. Weakness in asia and recovery in europe. The best way for me to sort of a drive value for shareholders is to consolidate the industry to bring additional value through cost synergy. Guy it is offense it. I got it is wrong, basically. Not a european rally in good valuations and as result, you can take advantage of that. I will come in and do traditional corporate reengineering and make the story work for me . Paras anand it is sort of neither holy defenses or defense it often wholly offensive or defense it. In a way you could say deploying capital in this cycle, using on leveraged Balance Sheet and doing something other than buyback youre on equity. Making buying a back your own equity. It is companies trying to build their franchise and consolidate their industries and accommodation of those 2 factors. Exploiting longterm revenue opportunities. Guy the opportunities are if you are a dollarbased company the opportunity is right here right now. A good window we may go a little bit further south or further north. In terms of i have a check in front of me and im looking at this, we did a numbers earlier. Significantly cheap to buy tnt now in terms of billions. Now is the time to strike. Paras anand dont forget when you are buying the European Companies, you are buying international companies. What fedex is doing is using that the currency opportunity in the shortterm tell by an international. Going back to where express was earlier, the corporate duct of cycle is as air. The recent depreciation in the euro gives a bit of a shortterm shot in the arm. Guy if you want to take advantage of this, how would you do it . Paras anand what we have done and what we look to do is look at hard to replicate franchises. It is hard to revoke franchises are often cheaper in the long term on most scenarios. When you have factors like currency depreciation, that plays up the potential and the added option alateen that someone else optionality as someone else in my say looks attractive. Guy thank you. Joining us from fidelity area we are going to take a break. We are back in a couple of minutes. See you then. Plenty more to talk about. Guy welcome back. You are watching the pulse. Now the Iranian Nuclear talks with world powers ended in an agreement last week. The white house said at the terms are still in dispute. Lets get more on this story. Bloombergs reporter joins us from tehran. How has last weeks deal been received in iran . A sense maybe we are getting too excited, too soon. Reporter i think people are very excited because it is a concrete step towards getting sanctions listed. It is so many extensions to the talk. 18 months of negotiations. Some felt almost kind of tangible. Like a real kind of milestone. People are coming out industries. Guy do you think the expectations may be unwound . Theres still a lot a detail of that means to be analyzed and this deal may not turn out as special as some people are anticipating that it is . Golnar motevalli yeah, i think people are very aware of that. [indiscernible] these talks have been extended. There also cautious. They are very aware of the extension and the deadline. And one of the issues in tehran, which opponents of iran are saying are the details so much still up to discussion. And i think people are aware and at the same time. It is allowing people to enjoy the moment, if you will. Guy golnar, looking at pictures, we have visit meeting taking place. Looking at live cages. How significant is it is a meeting going to be between these 2 countries . The relation could become significant as both a five for control of the region. Golnar motevalli yeah, i mean it is very interesting time. Everybody has been knowing it is in the cards for a while. In that time, we talked about strikes in yemen in the position of both countries. It has not changed. There are still opponents of the war. Because of that, there is some tension in irans parliament. Some parties not quite as jolly. [indiscernible] the relationship, economically between the two countries is very strong. [indiscernible] irans is massively dependent on trading. Guy Golnar Motevalli, thank you. We will take a break. We are back in a couple of minutes. Game bank welcome back. You are watching the pulse. I am guy johnson. I have data for you. March pmi better than expected. 58. 9 is the number. That is versus a february number of 56. 7. The Services Sector is the largest part. We have a real blowout number. The data coming through stronger for the u. K. Economy right now. Theres evidence of that. In terms of what else were looking at as well, seeing some on the spc notes coming through. We will get to those in a minute. Extending the decline after the pmi service report. The number, through is much better than anticipated. Lets turn our attention away from the United Kingdom and will be back in the u. K. Later. Lets talk about what is happening with greece. The grease of finance minister Yanis Varoufakis in washington and he and shorter the imf head they will make their forger 50 million euro repayment to the fund this 450 million euro payment to the fund this week. Lets try and get some answers for some of these questions. The greek alternative. Foreign minister for Economic Affairs joins us now. Sir, thank you for taking the time to be with us. Lets start with the trip to moscow and what mr. Tsipras is hope to achieve when he travels to russia. What are your thoughts . Euclid greece is not the only country that since people to russia and sometimes it is blown out of proportion what we are hoping for. It is a trip to speak to a Friendly Company country. Old countries are in both countries are christian majority and we have had traditionally good relations with them and discuss the various issues with them. We offer our services for our common understanding and International Relations problems. I do not think it has been reported in some elements of the media as if we are subtly changing where we are focused on which is the European Union and the eurozone and sorting things out. We are a major concern with greeces relationship with partners and creditors. And this is not altered in any way by the visit to moscow. Guy you can understand the nervousness because while you may talk of doubt russia being a traditionally friendly ally others may not see moscow like that. Euclid tsakalotos what i am saying it is the Greek Orthodox easter and blessed are the p makers peacemakers which are the children of god which is a phrase from the bible. If you can help put tension and help sort out to misunderstandings or to promote peaceful relationships then you should be able to do that. And greece is an independent, sovereign country that has an independent Foreign Policy the and can discuss with various people to exchange views and how you mutually reach agreements. What i want to focus on is that is not to exclude, our main focus is part of the eu and part of the eurozone and we want to remain like that. We are doing our best to reach a new deal from what we think is good not just for the average greek but average european. The economy is not doing well and it has to sort out a number of problems to deal with architecture and the way it has dealt with the debt problem. Guy one final question on russia, if i might and i appreciate what you are saying is we should not blow this out of proportion, it is a standard diplomatic relation playing out here. Is there anything you degrees will get out of this from this trip greece will get out of this trip from russia . Maybe a source of funding . Euclid tsakalotos that is not a white Alexis Tsipras is going. For the funding issue, we think it have to be sorted out. That is not why Alexis Tsipras is going. We have not had