2 trillion has been wiped off the market. Guy you are looking at it right now. As you can see there is a lot of red on that screen. Anna bonds continue to retreat today. That is the german and 10 year bonds showing yields. Guy that is what happens when you strip things early. The latest concern comes from the Federal Reserve chair janet yellen. She said that debt markets may exist. Equity market valuations at this point are fairly high. Not so high when you compare the returns on equities to the returns on safe assets like bonds which are also very low. But there are other potential dangers there. Guy that is quite a combo. That brings us to todays twitter question. It is simple and straightforward, is janet yellen right . Anna it is a good place to start our next conversation. We are joined now by luke pick more. Luke hickmore do you think janet yellen is right . Valuations could be problematic. Guest i think she is right at some point but not yet. Fundamentally, the lows are too low. That will keep them therefore potentially another couple years. We do not think we are in an environment where the yields are going higher and higher. Where we all know, it starts with what we think is reasonable value. Anna why has the bundesbank yield done what it did . Guest it is possibly all to do with the oil price. We saw this big drop off last year and people think inflation will go away and the Oil Prices Climb up once again. Underlying all of that, we will probably get 1 inflation in europe. We will continue to get 60 billion from the ecb every single month. They may look back and say 65 was a good level to get in. Guy it took four years for alan greenspan, will it take four years for janet yellen . Guest maybe less. We need to normalize at some point. You have a rising Interest Rate environment but it will be slow. Slow to 2 and 5 . And the glide path to a higher rate environment slow enough that yields can stay pretty contained. That doesnt feel like it needs to be four years. Anna will markets keep their heads when rates go up . Six years of near zero rates and she is suggesting we could see a shark sharp jump. Will they keep their heads or overreact . Guest they are not very good at keeping our heads. Volatility is something we will live with all through this period. We get asked of these stimulative assets. It is an environment we have not seen before. The market causes volatility. We may end up getting used to that kind of volatility. Guy we need to talk about some of the other things going on in the market as well. Lets talk about greece. The greek price is adding pressure to the bond market across europe or in this is the greek government and its creditors still working on a deal. They spoke to the greek finance minister after a meeting with the italian counterpart. We had a very fruitful and intense discussion. The purpose of which was to change views on the best way in which the eurogroup of next monday, the 11th, could be turned into a platform for annexing the kind of agreement between greece and our partners which is not only going to resolve the current negotiation but also leads to a period after june that will allow the Greek Economy to recover and grow again. Anna lets get to athens. Marcus joins us from there. What is the mood like with regards to the talk in greece . Marcus pretty optimistic. We have been here before and had a lot of optimistic signals but it has been an optimistic week. Talking but the progress made and getting closer at converting all week the kind of noises we just heard from the italians italian finance minister. So tuesday evening when we had this strange statement from the greek government when they really blamed creditors for the deadlock, and then since then there has been almost near silence on this as if it never happened. It was a joint statement from the creditors saying they were united on this and that was really the only kind of response on the record. Everyone else carried on with the poor resume message. Mario draghi and frankfurt. The ecb yes they discussed the issue of emergency liquidity and on top of that, more importantly as well, raising the haircut with collateral use. They made it very clear that this was contingent. They were looking on the political development. They also had a call between tsipras and Jeanclaude Juncker with an issue to join statements when they talk about Pension Reforms and the labor market to very notable red lines on the greek side. They talked about modernizing the pension system. Guy how shall i read the fact that the greeks are hiring back loads of journalist and their cleaners. It does seem as if some of the structure reforms that were so critical to the troika seems to be reversed. Guest a lot of the rehirings, they said they are not going to hire additional people, in a sense what was already budgeted by the previous government, we will hire back people that we think were unfairly dismissed. The critical points of big pensions and labor, in particular on pensions there seems to be signs of a convergence on this point in particular and that is more important than the cleaners. Guy cleaners are pretty important, but thank you very much indeed. Anna there is a disruption in the bond market across europe and globally. 2 trillion have been wiped off the bond and equity markets, so we are back with luke hickmore. Lets talk about the greek situation. You said that only a grexit really moves the dial is that where we are. Guest we all of that europe only has one time on its clock, a 59 59. 11 59 58. Anna you mean europe always goes to the wire . Guest it doesnt feel like next week either. Every minute it is getting closer. We safely said our core view is to get through this one, but it is getting tougher and tougher to have the trust that greece will do what it needs to do and the politics in europe will continue to support them, and that is the difficult thing. So long as there is political will the solution will be found. For the market, the greek exit is only the the only thing that really shakes it up. It seems obvious to me that the Movement Inco terms of yields have very little to do with greece. It is important but becomes very digital. Guy how do i trade that one . You just cant of do what you have always done and ignore it or do what you have always done and sell . Guest how do you make money out of greece is possibly not the way to think about it. It is how you protect your capital if greece goes the wrong way. There will be some key dates coming up that you think about hedging your portfolio and positions. Guy the thing about all of these crises has been you never understand it. Your in a position where you say , i think that is uncorrelated but it probably is. Anna we are always thinking about the last crisis. Guy so everyone who i am thinking about and trying to understand the relationships between asset classes, is there anyway i can map that out . Guest and make some positive returns . Guy or at least protect myself. Guest that is the point, if you put your hedges in now you are paying for that cost for a long time. At least you can control the cost of the hedges and that is the best way of dealing with it. It is not ideal and it is not great but there is very little in this situation. If greece goes you ask questions about the viability of italy and spain as a whole. That is the obvious place the markets will go if that happens. Protecting against that could leave harm. You have to come back fundamental work on. What do you believe about that . Our call is that they state in stay in. Guy we will talk about oil. What else is on the radar . U. K. Rod been provider broadband provider bts fiscal earnings rose 3 . They have been encouraging customers to sign up for highspeed web access. Anna europes secondbiggest maker of car parts leaves a positive impact on Foreign Exchange if x. Positive change fx. The continental ceo will join us later in this hour for his first interview of the day. Guy we go to the ballot box today to vote in the general election. 650 mps will be voted in. Around 50,000 polling stations open at 7 00 a. M. And will close at 10 00 p. M. U. K. Time. Ed miliband and his wife are casting their votes inco don caster. In doncaster. Anna at 6 00 tomorrow morning we will bring you 12 hours of breaking news, Market Reactions and analysis from westminster and the city tracking the outcome of the u. K. General election. Guy have i mentioned what we will talk about next . We will talk about oil. It has rallied but we will look at the drilling boost versus the supply story. On a girl anna staying with oil we will look at how the price and oil is impacting this companys bottom line. Guy boy will hear from guy we will hear from frank gore and later in the show. A slightly less large haircut is the way to put it. Looking for to that, that is coming up at 9 40 a. M. Anna welcome back to the pulse , we are streaming live on bloomberg. Com and your phone. Guy a record close since january eating a 2015 high of just under 70 per barrel. What will happen next . Our oil watcher is ryan chilcote. Talk us through what we are seeing in terms of the stalling . Ryan yesterday was an interesting day. Yesterday at 10 30 a. M. In washington, d. C. , just as we get it every wednesday from the statistical arm of the department of energy. The expectation was, crude inventories would rise. As they have for the last four months. But we learned that they fell. Or the first time in 17 weeks. You would think that if you have a less supply of oil the law of supply and demand suggests that the price of oil should go up. But it actually fell. It fell by about 2. 5 and is still kind of down. The reason for that and what we should be exploring, is because traders out there are paying attention to other signals they are getting in the United States, including from shale reducers. Anna , how serious will that the . Will that be . Ryan originally we thought of oil got to 60 a barrel, which is roughly where it is in the United States then that would be gloom and doom. But that has been very good for them in the sense that they are now saying 62 oil can be like 100 oil. In other words, maybe we can be rough double even with the oil price where it is now and a lot of the shale producers are starting to say, we heard from Occidental Petroleum that they think they will add double the number of barrels this year to their production that they thought earlier in the year. They think that now is the time to get back producing again. The danger is if the shale producers can now come back in, they start producing and you end up with another glut and that pushes the price down again. Whereas a lot of people are expecting an l recovery or fallout to the oil prices were it plummets and stays low, people like Daniel Juergen are saying, what we should be looking for and this is what you should watch, a lot of volatility and a lot of w light recovery or you have peaks and troughs and chill producers are the swing voters. They produce when the price is right and pull out when the price is wrong. Expect more volatility, but i wouldnt necessarily expect it to continue as it has. Anna sounds like swings and roundabouts to me. Guy alphabet soup. We are back with luke hickmore. This is totally illogical. You have a ceiling and a floor and you will trade in between. I think guest i think ryan hit the nail on the head. Guy it comes in and out. Guest you can shut the rates off ready quickly and inevitably send them back on quickly as well. I think the w shaped recovery is a fair way of looking at it. You use volatility to pick up decent companies. We were buying bonds in than early 80s. There are opportunities around in these volatile markets and you have to take them when you see them. Anna senior asset manager luke pick more luke hickmore. Guy we will look at the numbers and see how they compare with estimates in a couple minutes. Anna as we had to break, check out these pictures of nigel farage, the ukip leader posing for a photo to cast his vote. Guy welcome back, you are watching the pulse. Were live on television, the radio, streaming on your tablet, phone and on announcer bloomberg. Com. Anna europes biggest Engineering Company siemens announced another 4500 job cuts. Lets get to our reporter alex webb in munich. What is behind the miss . Alex premuch everything. They have nine divisions and all of them but two declined to profit. Theyre trying to push into more Energy Distribution extraction equipment and people are not buying that stuff. The reason the ceo had given for why things might be ok is if you are spending more less money buying oil than you might invest in your factories but that hasnt happened either. Guy are people questioning the case a strategy ceos strategy . Alex they agreed to spend 8 billion on a company that makes a lot of equipment for fracking. Theyve gotten out of this fracking industry since Oil Prices Declined so people say why pay crazy multiples for this American Company . Maybe they will get lucky and the European Commission will block the deal. They still say they want it to happen and it should close by the summer. That is the big question mark. Alex there is a call in 10 minutes time where i intend to put the call. 2200 will be in germany. We dont know the divisions affected. Power and gas is a problematic division and they say that they have 15 billion euros worth of revenue which is problematic and probably unprofitable and those are the divisions largely affected. We will have to try to work out where they are. Anna thank you, well have you back in the next hour. Alex webb joining us live from munich. Guy coming up, the chief executive joining us as the Company Boots their sales for the fourth time this year. Anna just a reminder, you can follow us on twitter. Anna welcome back to the pulse. Live from the European Headquarters in london. Guy these are the top headlines. Anna australian employers cut jobs in april. After the investment boom on lines weakened the currency. The number of employees fell from 2900 from the month earlier compared with economists forecasts. Guy Benjamin Netanyahu succeeded in forming a new government. He has a queue of outstanding offers. He struck a laugh lastminute agreement with a jewish party giving him 51 seats. Anna the u. K. Goes to the ballot box today to vote in the general election. 650 mps will be elected as voters get the chance to decide the makeup of the next parliament. Around 50,000 polling stations across britain will be around london around the u. K. A reminder from 6 00 tomorrow. Guy 12 hours of breaking news Market Reaction and analysis from westminster. The city and europe tracking the outcome of the u. K. General election. Anna lets talk about the earnings story. Earlier this morning we got fullyear numbers from bt. They sound up the for future growth. Here is caroline hyde. What were the takeaways . Caroline digging into the numbers before we talk about the mega acquisition without the mobile company it is dying, it is already driving up profits some 3 . They were beating analyst expectations, we see that 121,000 people were added to their Broadband Customer base. It used to be a former telephone monopoly. Now it is the biggest provider on the internet. 120,000 new customers is the equivalent to half of the overall market for new Broadband Customers. Seriously lapping up market share when it comes to the internet. We say we will continue with modest growth. They did take a bit of a hit. When we spoke to people within the company they are saying that growth is being driven by their investment in fiber. Interestingly 40 of their customers are upgraded to the more costly but asked her broadband. Theyre also investing in sport. They are expanding their Global Services business overseas. That is the outsourcing business. By cutting down cost, they are able to boost profitability. Quite a story for the year ahead. Looking at the opportunities largely because of m a. It is about a 12. 5 billion pound investment. They are bringing together the biggest internet pair in the biggest mobile provider. Together it will be the biggest mobile company in the u. K. Offering quad play, as we call it. You have mobile coming from ee and bt providing not only broadband, but television as well. They think that ee alone will and 25 to their profit, but the sport content, bt sport launched in 2013 and they spent billions on it. 320 million per season which is what they are coughing up to all of this makes sense when they feel this is the way we want to buy our content and the way we want these mobile subscriptions. Quad play is the future and that is what the cfo told me earlier. Class know from our Market Research that 80 of people are interested in the area and we feel that we can reach more levels of penetration. I will give you absolute forecast but what i will say is it a driver for growth in the future. Caroline the problem for him is everyone else is in on that particular play as well. They looked at europe and the trends that are going on and the way people want to buy their mobile and communications and tv. Now the competition is rife. They have an in a deals springing up everywhere. Think of the activity going on in the united kingdom. You already have virgin media offering the full key areas that they want. They have been offering quadplay for a while and suddenly vodafone has said they will be offering home phone to build on as well tv services and the internet. Meanwhile sky which offers broadband and tv is offering mobile contracts next year. They have been getting into bed with 02. So much to process. All i can say is the trend for quadplay and consolidation. Tony telling me that as well. Expect more m a this year in the u. K. Regulation is a bit of a challenge for them. Off come starting a Strategic Review into the tnt market. There particularly going to be analyzing the bp role. They have a Company Called open reach which provides internet and fixed line phone access to other companies. Is it too much market power. This is what some of the competitors are saying. Bt responding saying, we will not invest msu allow us to keep open reach and not spin i