anchor: no deal. talks collapse after 45 minutes over the weekend. the euro and global stocks slide. saudi arabia opens its doors. they allow foreign buyers to high stocks today for the first time. we are live from the middle east. in race to the skies. the paris air show kicks off with boeing and airbus competing for orders that could total $23 billion. welcome to "countdown," everybody. i am anna edwards.

an exclusive interview coming up today. we will be speaking to petro poroshenko. my colleague will be speaking to the ukrainian president after the february truce looks to be under strain. plenty of talks about 1:15 u.k. time is when that is coming up. let's talk about a bit about greece, because that is topical. yesterday, creditors and greece and thursday is when we get the next stage in the action, if you like, and let's have a look at the euro. a one-month chart. some weakness coming through in the euro in the last 24 hours or so. this is in the currency. let's talk about our twitter question because this is following from that. what is your final deadline for a greek deal? many people talked about their final deadline in the 11th hour.

it let a: 59 seconds. get in touch on twitter and let's get a look at what is happening in terms of stock market action. specifically with athens, we saw stocks down by 5.9%. in particular the banking sector was down by 11.8%. the u.s. market close we saw the index is down by zero .6% to 0.8% on the major equity markets. a specific greek effect on friday and as we cast our minds forward, greece continues to be topical on thursday. we will see eurogroup leaders meeting in luxembourg, so that is potentially on that day, and

in the meantime, we have the matter of a federal reserve rate issue. this will be coming through 7:30 on wednesday evening. there is, according to investors, almost no chance that the fed will change rates, but a great deal of conversation, no doubt, to be had this week. and let's talk about the asian markets. asian equity markets are also down this morning. a little bit of fear, perhaps, surrounding the greek situation getting into the asian trading session. the zeb eckert is with us. good morning to you. zeb: good morning, anna. that selloff is broad-based, all of the way over to korea, and there is sri lanka and vietnam, but the concern, of course, in the market is even with china passing or surpassing $10 trillion, a record valuation for the equities listed in china.

there is concern that a lot of this stock market activity which has been fueled by domestic investors is leading to a bubble, and the margin debt numbers show a story, a record amount of margin debt by chinese domestic investors, which has fueled to this world beating rally. remember, the shanghai composite is up one hundred 50 2%, but we are seeing a big selloff, the biggest since may 28. there is speculation that the chinese authorities will step in to try to temper this. the concern is that if it goes bad, goes sour, you will have a big market dislocation. check out what is happening. shanghai and hong kong down by a similar amount. and it is the financials we are watching on the downside. at they pacific, the only stock that is advancing with the hang seng because of a ratings

upgrade. china life insurance, and the flagship company of li ka-shing the billionaire, that is moving, as well, and we are also watching the property developers, and they are benefiting somewhat from a boost in home prices in hong kong but the overall concern goes back to the slowdown in china. watching that very closely and this paradox, huge gains in the markets for shanghai and hong kong, but good -- big risks. investors looking ahead to the federal reserve meeting. anna: the stock market valuing the chinese stock market valued at more than $10 trillion for the first time. an interesting story there from zeb. and discussions with the european and greek leaders broke down. creditors left the meeting, saying there was a significant gap between the two positions and now our correspondent is

standing by for us. we have got hans in berlin. walk us through the german perspectives and the talks that we saw yesterday. hans: anna, i will get to the german perspective. we have had breaking news from mr. tsipras, the greek prime minister. this is so creditors become more realistic, so some very strong language from mr. tsipras. he also says that the greek government does not have a right to bury democracy. now, you overlay those comments with the german newspaper here just this morning, and he is saying he can no longer rule out -- he says he cannot rule out -- he can rule out a sensible break. but he cannot relet the prospect of something like that happening. now, you take the german perspective. over the weekend, they are starting to lane agrees a little

bit more with some hotter language and also shifting more, planning on what happens if you do not have an agreement on july 18 in luxembourg. there is one man who is important because he is a coalition partner of madame angela merkel. his party is to the left of merkel's. here his what he said over the weekend. this is a direct quote. he said it is becoming increasingly perceptible. they are gambling the future of their country and europe's also so some very strong language. the difference is and remember, this meeting broke up after 45 minutes, a short meeting. the both sides were pretty far apart. looking at what the budget surplus should be 2%, 3%, than 3.5% and you cost that all out for where the greeks say they are, and you are about 10

billion euros short for this year. one more comment on planning. this is from an important deputy from mrs. merkel. he was speaking over the weekend. here is what he had to say. an exit has to be factored in if the greek does not do what it has been called to do. this was another comment out over the weekend, and we are getting a bunch of news. we will have to digest it. we are getting more on the interview and we can walk through maybe what can potentially happen if you are a optimist in brussels. guys? anna: thank you. you heard the set up there from hans. what about the credit perspective? reporter: i would not use this with the news. there is the meeting in luxembourg, and that is where

they hope to make some progress but coming out of yesterday's meeting that broke up so abruptly because the two sides are still so far apart, it does not look good from here. we will be waiting to see what some of the officials have to say. we have the ecb president mario draghi in town. he is speaking to the european parliament, and he has something to say about the state of negotiations at this point. anna: jones, thank you. we will be watching for any news from the leaders today. the belgian finance minister will be speaking on the greek debt crisis. that is at 10:00 in the morning in berlin with the ecb president mario draghi, he will be addressing the parliament in brussels at 2:00. you may want to set your alarm for those times. we are just getting some breaking news out of germany. a very different subject. let's get to caroline hyde.

caroline, good morning. caroline: a little bit of m&a to spice up our morning, and that is coming from germany, announcing they have sold 2.8 5 billion euros with the department store chain. 135 years and the owner now is going to be hudson bay company. the oldest company in canada. it beat out the competition. hudson bay already has a track record and they own saks fifth avenue in new york, and they have managed to make some concession in terms of labor demands, as well, so clearly being the better purchaser, and the price point is 2.8 billion dollars, and it will be including correspondingly owned real estate portfolio items, so clearly a bit of m&a coming

across the board, the supervisory board ceiling this field unanimously on sunday, voting that this would be the right course of action, so there we have it. 135 years at the department store, well-known being sold to new canadian owners. back to you. anna: caroline, thank you. 11 minutes past 6:00, and we will take a break but first, we will tell you what is coming up on "countdown." ryan chilcote will be joining us after a sitdown with petro poroshenko. he is here after the break to tell us what to expect. stay with us on "countdown." ♪

anna: welcome. here are the stories that you need to know this morning. rees enters what could be a

defining week after last-ditch negotiations between the government and creditors collapsed on sunday. the european commission says the talks have broken up after just 45 minutes. the focus now shifts to thursday's eurogroup meeting. it is a session that could decide their ability to avoid default and to look at their management of the euro area and close to winning almost 220 orders for competing jets at the paris air show this week. the orders would be worth at least $23 million. unveiling the orders, scheduled to begin today. that is when it formally opens. and saudi arabia is opening up the stock market to direct investment for the first time today, and in the move by the biggest exporter it comes as the king pushes ahead with efforts to diverse economy. the index is up 16% this year the biggest gain in the middle

east. stocks advanced the most ahead of today's open. that happens at 9:00 london time. and ukraine economic growth could contract by as much as 9% this year. that is according to the economy minister. the country has been battered by war in its eastern region and is receiving billions from international lenders. bloomberg' is ryan chilcote will be speaking to the ukrainian president, petro poroshenko. ryan, good morning to you. what are you planning to talk to poroshenko about? ryan: two things, really. about the fighting in ukraine, what we saw before they reached a cease-fire and two, the ukrainian president's take on the u.s. debate on pre-positioning weapons in eastern europe in the nato most eastern members, and that is an

active debate going on right now in the united states. if they do that, that will be the first time since the cold war since the united states has positioned things like tanks in places like estonia. and finally we are interested in the ukrainian president's take on the sanctions. and whether or not it is at all useful. anna: i'm pretty this into perspective, what is happening on the ground, and where are we in this story? : going to sit down, and they have to decide if they will extend the existing sanctions against prussia. the expectation is that you will, and another interesting thing to watch is whether the u.s. and eu actually announced some of the sanctions that they are supposedly spent discussing secretly, in case russia escalates. at the same time in brussels next week, and defense ministers

are going to be treated that is where they will make the decision about positioning thanks. as has really taken off for the last 12 games. we have had seven ukrainian soldiers killed, close to 35, and finally, i worked somewhere in headed next, st. petersburg russia, a context in terms of the timing, that is where investors at the annual economic, and, as you will certainly want to know what the ukrainian president thinks about the idea of is this returning to that country. anna? anna: ryan chilcote on the day -- on the phone there from kiev. and our guest who will be here for that next hour, a head of global fx strategy at morgan stanley, good morning to you. thanks for joining us. let's stick with this question. we have heard about how in st.

petersburg, president putin is going to be trying to woo investors to come back to the russian economy. does he have much of a case? guest: there are a number of reasons to assume so. most importantly, with the russian economy, it is pretty much that they are suffering and the manufacturing sector highly uncompetitive, and then you have to think about what is happening in the commodity market. last week, we did see some commodities trading down to new lows. when you look at global demand for commodities, it seems to be weakening. a global rebalancing, which i believe for russia, they are going to fall victim. of course, it is all about oil or gas with the specter of russia and oil prices have remained relatively stable.

you have to consider one point here and the market has developed a really high correlation with the u.s. dollar, and that means that some of the resilience of the market can be explained by the fact that the dollar index weakened from 100 to 52 currently trading at 95.30, so if it comes back into strength, it is very likely that the market will give up some of its recent gains and stability, and that, i think, is creating an opportunity where the russian ruble is trading -- if you are bullish on the u.s. dollar the best way to trade is maybe in the commodity sector especially against the russian ruble. anna: what about what is coming up later today to add into the mix? it could be the fourth time that they cut rates. how week does the currency go, do you think? hans: cutting the rates will not

help the russian ruble. and the recent stability with the russian ruble has allowed for these rates but i think that the russian ruble has something like a 10% depreciation so that should be the near-term target. and a lot of this depends on politics and on it there is escalation taking place if the ukraine situation is becoming more unstable, which it looks like. this is a moment that will continue into the next year. and i think that all of those questions are very likely to result in further weakness. anna: let's go ahead and look at greece. 8:00 in the evening, the three most read stories are all about greece, and it seems to be about

preoccupying investors, perhaps around the world. is that your assessment? hans: there is the prospect of your revocable it he and that actually means we will have a new currency union looking at a fixed exchange rate. a possibility to exit if you like to exit and the disturbing thing yesterday was, actually, i would say two things. number one, after 45 minutes, and secondly, we have to think about the imf. the imf is a hard not to crack. they are in a very difficult situation, because if they were to give into conditionality -- a difference between if greece is getting a very generous outcome let's say emerging markets or

other countries which are in similar situations. a very tough imf, and i think the imf would gamble its credibility away if it were to create some looseness on greece. so getting an agreement. of course, that is going to lose a lot of credibility. that would be not good, so it is very difficult to see a very good solution here especially with the greek position now focusing on that restructuring and debt restructuring means they are going to lose a lot of money, which you could argue they have already lost but it is all about recognition. anna: so they continued to call for a haircut on debt. and they are focusing on cutting the debt burden for greece. it should not actually be the focus. it should be on short term growth.

where do you see what should be the focus of any deal surrounding greece? hans: what we need is for the economy to do better. and this is concerning the fry mary -- the primary surplus. how do you get this back on track? more money or is it actually developing a solution where you support the competitiveness of the country where the country can generate future income? and i think with the current government, they are focusing too much on the demand cycle, so, yes, tremendously high debt levels. it is obviously a result that this country over consumed. whether by the public sector or by the private sector so we have to rebalance this economy to become more of a supply driven economy.

that is what the imf position is, and that is very difficult to swallow for the left-leaning government. anna: with the german government, writing into the newspaper this morning saying that the shadow of the greek exit is increasingly perceptible. should we take those kinds of statements serious? they are warning them that they would let greece go? >> if they came from some diehard conservatives, i would not be so worried, but it comes from a social democratic party, maybe having the most pro-european force in germany, and saying these are gamblers and they are gambling their country away, and i think it is a remarkable statement, and therefore i think the

government is saying, ok, what is not going to happen here that we will allow a monetization of it revocable and he, and that means that greece will just hope that at the end of the day, europe is not allowing monetization. they can claim whatever they would like to claim, and there is the election campaign that has been expressed. anna: hans, thank you so much for sharing this. staying with us for more time, it revoke ability. past six here in the morning, we will take a short break on "countdown" and later on the program, guy johnson will be here just after the break with a preview of some of what he has coming up, and airbus and boeing will be at the 51st harris air show. of course 23 billion dollars,

or is this year not going to be about big orders? will it be about something else? we will talk to guy after a short break. stay with us. ♪

anna: welcome back to "countdown" 6:30, and here is what the euro dollar is doing now and has been doing over the best part of the month. you can see they have started to move lower in the single currency, concerns about what is going on over greece dominating things. it took 45 minutes for talks between greece and its creditors to fall apart over the weekend, and that is not a positive sign. as we were hearing from hans earlier, not a good situation.

and we moved to the next formal setting. we have the eurogroup ministers meeting on thursday, so we might get some news after that meeting. bear in mind we have the federal reserve with interest rates over in the u.s., and it looks like we are not going to get a change. we are looking at the euro dollar, and that is what is happening in the currency markets right now. let's get to some of the stories you need to know this morning. greece enters into what is last-ditch negotiations between them. the european commission said the talks in brussels had broken up. the focus now shifts to the eurogroup meeting in brussels. they could decide to avoid default and the continued membership in the area. boeing and airbus are reported to be close to 220 orders for narrow body jets. the orders would be worth at least $23 billion and the

orders to began when they open. and the sudan minister has told bloomberg that they had left the african union summit despite a judge's order to keep him in the country, pending a decision for an arrest on war crime charges. he has been arrested for alleged atrocities in the darfur region. let's return to the subject of aviation. the paris air show kicks off today, and we will be speaking to many of the figures in the aviation industry. guy johnson has details for us. good morning. guy: good morning. as you say, 23 billion dollars of aircraft orders could be placed here at the paris air show, and they would probably say -- pay a little bit less,

and the big question surrounding those orders, is that a good number, or is that a bad number, because as we know prices have come down to romantically, and that means that airlines are a little less interested in buying new, super efficient airplanes from boeing and from airbus, so everyone is going to be asking whether or not demand has peaked. have we hit the high water mark in terms of the aircraft question mark remember that airbus and boeing have unveiled new versions of many of their airplanes with new engines on them to make them more fuel-efficient. the new engine option on the a320 and the max, those are going to be the big sellers. those are the narrow bodies. that is what we have spent most of our time on, but huge demand for those aircraft in both the u.s. market and the asian markets. and a question people will be talking about is whether or not the fight that seems to be

erecting with the gulf carrier and the u.s. peers whether it will take us forward, and we'd see both sides with some very strong language, and we will be talking to some key players. we will be talking to the ceo of qatar airways. also, we will be talking to some of the main manufacturers, so we will be talking to the ceo of knowing. and speaking to the ceo of airbus and his boss. they will be joining us over the next couple of days, and we will be watching the display. which airlines will be here? will another version be flying here at the paris air show? will the new a320 be flying here? and then what is the question about the future of the a380? the pressure certainly on airbus. anna, back to you. anna: thank you.

let's leave that for a moment, and we will be back with thy in a moment. let's get back to our conversation about greece with the mo cowan stanley -- with the morgan stanley head of strategy. and a european commission -- over the weekend, the talks fell apart in 45 minutes, and now they are saying that the technical preconditions are there for a greek deal, but then yesterday, they were saying they were far apart. not what they want to see on pensions, on vat, perhaps on the primary budget surplus. a residual gap between these parties? hans: if they are a deal then of course, they will always be there. you have to think about how to reach an agreement and it is

almost built on a mutual understanding, and what is the problem here, since the mutual understanding is not here, and then one of the previous commentaries they were saying that there was a risk that the euro and greece were developing into kind of a sleepwalking situation, to sleep walk out of the currency union. that has to deal with the understanding of each other. and he sees this currently happening, so the europeans are coming up with these proposals, but they are a key element. they want to keep a rule-based currency union in place, so it is rule-based and what they have is not rule-based, so these two positions are clashing. anna: and the greeks say they have to take into account democracy and that they have to go back to athens and sell whatever was achieved in brussels and this is a long very different lines. hans: tsipra was saying he does

not plan on having a new referendum, so that actually means he is backtracking from that side also, and i guess that is all about power. it is all about where is the position of the greek prime minister in the future? if he signs on a deal him a which is not getting the majority within his own party, so his political life is pretty much limited, and i think he does not want to go down that way and therefore he negotiates very hard and there is the remaining option alley to get a very supportive deal for greece. now that could clash with european positions. that is about rule-based and this does not come together, and that is the real risk here. anna: when is the deadline

question mark we were asking that on twitter. is it june sometimes in july question mark do we kick the can a again? hans: there is a real big thing coming on july 20. that is when the greek government will have to pay the ecb, and the reason this is important is if that payment would fail, then under those circumstances, they would have confirmation with the european central bank. that could have implications irrespective of the decision of the constitution concerning what is still pending. now according to the german magazine "der spiegel," there will be the court of justice. there are recommendations that they will spell out for the german constitution if the omt is in line with the laws, and

then they have to spin it, so that is one of the points. anna: hans stays with us. today getting a chance to tap into something historically restrictive. saudi arabia and stocks. here is everything you need to know about the opening. reporter: ever want a slice of saudi? now their stock exchange is open to foreign investors. with 100 70 listed companies the capitalization is the biggest in the arab world. in fact, it's market capitalization is bigger than the moscow stock exchange and more than 2.5 times the uae's, but what about growth? the political and ethanol get -- economic union with kuwait and bahrain, not only the biggest

it is also the fastest growing. the economy has grown a 16% so far this year, so if all goes to plan, it could join the emerging market index as soon as 2017 accounting for 4% of the total, but before you get carried away only institutional investors with at least $5 billion under management are allowed to invest directly and even then, each cannot hold more than 10% of the overall market value. what is more calm you cannot hold more than 5% of any company, and together, foreign investors cannot own a majority but with a rolled largest oil producer eager to diverse, they can try their luck trading in the kingdom. anna: now, later, mark barton will be joining us live from dubai for a special edition of bloomberg agenda, focusing in on the middle east and the opening of the saudi stock market.

that will be at 11:00 london time. 2:00 if you are watching in dubai. and coming up later on the pulse, we will be speaking to the ceo of the saudi stock exchange. don't miss that interview. that will be at 10:15 here on bloomberg. lot still to, on "countdown." up next, we are live in the middle east. and we will bring you a corruption scandal centering on fast cars. and a reminder, you can weigh in on our conversations on twitter. greece still very topical for us and @annaedwardsdnews is where you will find me. some people talk about a soft deadline at the end of june. some talk about further into the future. what is your deadline question mark what is the deadline that

matters to you as you watch this story unfold? we will take a short break now on "countdown." ♪

anna: welcome back to "countdown ." 6:44. here are the stories you need to know. last-ditch negotiations collapsed on sunday, and the euro dropped as they said the talks in brussels had broken up after just 45 minutes, and the focus now shifts to the eurogroup meeting in brussels, and it could determine their ability about default. boeing and airbus are reportedly close to winning orders for the narrowbody jets at the paris air show. the orders would be worth at least 23 billion dollars, and the press conference is scheduled to begin today when the event formerly opens. saudi arabia is opening up its

stock market for the first time today. the move comes as the king pushes ahead with efforts to diversify the economy. the index is up 16% in 2015, the biggest gain in the middle east. stocks advanced the most in it two months yesterday, ahead of that 9:00 london time opening. and for more on that let's get to mark barton, who joins us now from dubai with a guest. good morning to you, mark. mark a very good morning to you ,anna. we are counting down 2.25 hours. i am joined by a very special guest the former chief economist thank you very much for joining us today. we are counting down, but let's be honest. today itself is not going to witness any sizable moves, is it? guest: no, it is not a game changer.

opening up the market for what is called qualified investors and you have to have $5 million. and this is a gradual liberalization of the market, which, of course, is important, because it is the most important a stock exchange in the middle east, running at about $580 billion for an economy that is the largest in the middle east. mark: are they strict? some say they are. are they prohibitive? guest: not prohibited, but you have to be qualified. there are restrictions in terms of how much you can own so the maximum is going to be 49%, so the big move really is when they will enter msci. will it be reclassified to emerging, and i think that will be the big move that we should expect.

market: some are saying it would take place in two years. i have seen their word avalanche used a lot. an avalanche of money? guest: no, the ownership you will probably see about 1.5% one point 7% of msci emerging markets, so with this you're probably get another 15 billion to 20 billion coming into the market, and i think the amount of capital coming in is not what is important. what is important issue get institutional investors, that you get better governance, better reporting. mark: give us an idea of standards of corporate governance right now within saudi arabia. guest: if i look back five years, there has been a big improvement. five years ago, there were some world-class companies. that has changed.

the cma, i think, under the leadership is showing greater assistance of transparency. that is good. and they are starting to show some teeth, and that has encouraged them. i think before investors will encourage that. mark: and the development of capital markets, will that continue, or not? guest: the oil price decline will have an effect. this is the, they will be running surpluses over the past decade, and they have substantial reserves. now with the oil price decline, that is a big hit. we will see the development of the money market, which will be helpful. market: the saudi's have been tapping the bank reserve haven't they? a record pace. is that a concern?

they still have 600 billion dollars of currency reserve, tapping $45 billion over three months. just call it it is substantial. and in yemen, they are also didn't think those reserves. the issue is going to be if prices remain. $65. some adjustments. it means i were celebrities. a more rational spending. you need more rational pricing of public utilities, medium-term. mark: that helped the centers? this is a part of the plan with arab spring, the $130 million plan. test: that is true. 20% of the population in the arab world.

particularly now that international prizes are not so far. this is a timely to start actually out of subsidies. : five is the young unemployment and 30% to put the young, and the young is a big proportion of the population. guest: it is. it is the number one priority. they know that very well, so they are trying to pursue diversification efforts. that is not easy, because the private sector has been so dependent on them taking a lead and on government projects, so the big thing that can be important is moving towards privatization. i would love to see the saudi airlines privatized. there is much that can be done to encourage the private sector to play a more important role in infrastructure, which they have

not played so far. we are seeing a situation between the finance ministry, central bank, minister of the economy and the cma. much more open. so that team, i think, is going to drive this with the economy. mark: thank you very much for joining us here in dubai. my first guest in dubai. it has been a pleasure. we are a couple of hours away from the opening, the best-performing middle east stock market this year. the former economy minister and the former chief economist. i will see you later. anna: thank you, mark. just over two hours to go. we will hear more from mark in a special addition of bloomberg agenda. that would be at 11:00 london time just after that market

opens up, and morgan stanley, the head of global effects is with us, and also joining us this hour, from bloomberg business, joining us for a look at some of the top stories on bloomberg. good to see you this morning. let's pick up on the saudi story. we have been covering it. in particular, the saudi economy on energy. run us through the coverage. guest: yes, that is a big part of it. who are the winners, and who are the losers? who will be the losers? so what we are looking at and what people we are talking about are saying, money will flow to saudi arabia, and it will flow to the other oil proxies. it might be big ones like russia, or it could be small ones like tar. they both have similar profiles. obviously, qatar does not have the politics that russia does. anna: an extended consequence of

what we are seeing. this part of the world does not hold much interest given a lot of the currency in the region areas the foreign currency man, such as yourself, any interest in the region for you? guest: well, there have been some speculations after the decision with the pressure building up, and people were saying what about the middle east? and it is about the environment, where, let's say, it would decline, where the u.s. dollar would rise, and would that actually mean for the implicit tightening or the monetary conditions? would it actually clash with others? i think that is not the case. i think the speculation is immature, and the reason why is you have to look at the following. number one, saudi arabia still enjoys a relatively strong economic growth, and secondly

they have significant currency reserves. that means it is a substantial portion and then under much harsher pressure in 2008. and then i think to assume it would go anytime soon, i would guess, no, forget it. anna: the paris air show we heard from god earlier about how we can get $23 billion worth of orders. and to be about big orders this time around, what is the angle you are taking? guest: what is interesting is we are not seeing the orders for the big trophy planes. what we are seeing is the replacements for the 737, the work courses, and a lot of these are coming from the leasing companies. these are not coming from the big flagship carriers, so, yes, they are really run-of-the-mill

things. it is not the big issue. anna: it has been a thing that they are playing a bigger and bigger part. let's talk abut another story that we have not picked up on the program so far, and that is a corruption probe. guest: yes it is a very interesting story from one of my colleagues in the newsroom. sort of getting momentum in romania. the prime minister. it centers around a 300 horsepower mitsubishi racecar and $46,000. the prime minister, we spoke to him, and he said, look, this is all completely legitimate, and that will be seen in time. the money was paid for criminal law work that was done and that but, apparently, he likes it. anna: ok, we would check that out. thank you, tim. the head of global fx strategy stays with us for another 30

minutes or so. "countdown coming up still on"countdown" we will be live in athens, berlin, and russell's after the last-ditch greek talks, and we will also be in paris, speaking to bombardier. ♪

anna: talks between brussels -- greece and its creditors collapse. saudi arabia opens its doors foreign buyers can buy stocks today for the first time. we are live from the middle east. the 51st paris air show kicks off today with boeing and airbus competing for orders. a warm welcome back to "countdown." it has just gone 7:00 here in london. my colleague ryan chilcote will

be speaking to the ukrainian president. that is coming up at 1:15 u.k. time. they will be talking about the state of the ukrainian economy. very topical is what is happening in greece. it took 45 minutes for talks to fall apart on sunday. not promising, it sounds. the eurogroup meeting on thursday, might we see any kind of progress at the meeting? this is how the euro-dollar has been trading. that takes us to our twitter question. when is the deadline for the greeks to secure a deal? what is your deadline? july 20? end of this month? another date?

let's cast our minds back to friday. this is what happened in athens on friday. we saw some considerable weakness. 11.8% weaker for the banking sector. we saw considerable weakness and not spread across europe. -- and that spread across europe. that affecting what happened in the united states, weaker u.s. equity markets. the u.s. equity markets closing down 0.6% on those major indices. we have the fed meeting this week. investors see very little chance we will have any change in interest rates. the rate decision is due wednesday evening u.k. time. the eurogroup meeting takes place on thursday. let's return to the subject of greece.

after talks ended last night without a deal, prime minister tsipras calling on his creditors to become more realistic and says he will wait patients -- patiently for them to move toward realism. hans nichols is an berlin. let's kick things off with you hans. hans: he wants realism realistic approaches from his creditors. he thinks it can only have a political background. we have also heard in berlin, he had an interview last night and he is indicating that he is in no mood to compromise. take a look at what he has to say about the prospects of an exit. i rule out a grexit as a sensible solution. he says debt restructuring is

the only way forward. clearly, over the weekend, the talk has shifted in germany. much more of a focus on planning for a grexit. there seems to be a fair amount of anger across the political spectrum, which indicates if there is somehow maybe possibly a deal, it will be very difficult to get that through the german parliament. take a look at what the minority partner in merkel's coalition had to say over the weekend. he says the shadow of a greek exit from the eurozone is becoming increasingly perceptible. the future -- they are gambling the future of their country. we can all talk about what the goals are, what you can do to get these negotiations back on track. it seems the sides are very far

apart this morning. anna: let's see how things look from brussels. jones joins us. how will they be able to bridge the gaps between the parties? jones: at this point, it is unclear how they will be able to bridge that. this difference is what they have been talking about for the last three or four months. that is partly why the meeting only lasted 45 minutes last night. there was not any room, there had been no movement toward a deal so the creditors said let's just stop and we will kick it down the road to the finance ministers. they are meeting in luxembourg on thursday and that is the next showdown to see if we can get a deal. in the meantime, there will be contacts going back-and-forth to see if there can be any kind of

movement. we have ecb president draghi speaking today to the european parliament in brussels. we will see what he has to say about the situation. anna: jones, thank you. let's get to athens. what is the reaction in athens? no break in the rhetoric. the greek government coming up fighting already this morning. >> yesterday we had a complete breakdown in talks and i could not help but recall -- the 28th anniversary we are celebrating the first european basketball championship in those games were held in athens. there was a song that became the theme. it was a song performed by europe and it was called "the final countdown." here we are again 28 years later. we are facing another final

countdown with europe. the government from greece this morning pretty close to pre-election rhetoric, talking about restoring dignity and restoring democracy in greece. the two sides are very far apart . at 10:30 a.m. london time, they will talk to people in athens. we will see where greece stands formally. anna: thank you, everybody. a full geographical wrap of the story. let's get back into the financial markets and see how markets are reacting. german tenure bonds opening higher, yields falling a couple of basis points. 0.8% is where we stand on the 10-year. spanish bonds declining with the 10-year yields rising 12 basis

points. in italy, the 10-year bond -- yield rising. fairly obvious reaction in the bond markets this morning. the yield going a little bit higher on some of the peripheral debts and coming down a little bit in germany. the flight to safety as we saw in friday's session. >> absolutely right. it assumes there is still a strong commitment of the european central bank concerning quantitative easing. it is unlikely to be a huge spread rate. you can expect some profit taking on the narrowing of spreads so people book in some profits. it is unlikely to be something serious unless you would get a surprising result tomorrow.

we have to keep that in focus. the question which is the obvious trade when something was wrong in greece? would it erase risk appetite? what is the economic impact into europe? what is the the impact on equity markets? the interesting topic concerning the euro because what we have seen in the past week, the euro has decreased the sensitivity to the two-year sector and increased sensitivity to the 10 year sector. it has become increasingly impacted by the performance of equities. when risk appetite is coming off, you see a you're a positive

reaction to that. -- euro positive reaction to that. of course you can have a situation where the euro would under significant selling pressure -- would come under significant selling pressure. we are opening our balance sheet and we will do whatever is required to keep everything stable. it means they would print more euros. on wednesday, -- on thursday, we have a policymaking ecb meeting. we will focus on the emergency liquidity assistance. anna: we have 30 seconds to talk about the fed. it is uncharacteristic given how much everyone should be talking about what the fed will do. hans: the fed is tiptoeing

into a rate hike environment. the latest data out of the united states -- the central bank can signal they are working on the rate hike. anna: thank you so much for joining us this morning. great to get your thoughts on greece. still to come on the program, we are in paris at the 51st airshow. we will be speaking live to guy johnson in just a few minutes time. ♪

anna: welcome back everybody.

here are the stories you need to know this morning. greece enters what could be a defining week after last-ditch negotiations between the government and creditors collapsed on sunday. the european commission said the breast -- that the talks in brussels have broken up after 45 minutes. boeing and airbus are reported to be close to winning at least 220 orders competing at the paris air show. the orders would be worth at least $23 million. the orders are scheduled to begin today when the events formerly open. saudi arabia is upping up its stock markets to foreign investors -- opening up its stock market to foreign investors for the first time today. the index is up 16% in 2015.

stocks advanced the most in two months yesterday ahead of 9:00 london time. that is when they will open this morning. let's talk about technology. today is the start of london technology week. some impressive specifics will be published to highlight the uk's dominance in the tech sector. the u.k. is some to 17 of europe's $40 billion tech companies. eight created in the last year. her line height is -- caroline hyde is here in the studio with me. it promises to be an exciting week. have exciting is it -- how exciting is it to be technology

in london? london has designs on being the european tech hub. how much more exciting is it now compared to a few years back? >> there was a tremendous amount of innovation going on. in the last two areyears, we have seen critical mass. this week is exciting and seeing that growth. anna: syntax has powered through these unicorns. are there any other sectors that are not getting the light shone on them? nat: the internet of things

london has one of the largest kind of committee of people interested in that area. in terms of smart homes, the huge amount of e-commerce spending, this is an area set for growth. anna: give us an idea of how big it could be. nat: 1.7 trillion in the next five or 10 years alone. today, we are barely scratching that surface. anna: why are we seeing this perfect storm building around london at the moment? is it what investors are getting interested in he was coming over? why do we have such dominance in the internet of things? nat: it is almost like a perfect

storm. tremendous talent from all over the world. within europe, many people coming over to study at universities. we also have capital, which is flooding into technology all over the world. some of these older tech industries mobile technology, lots of shifts and changes. anna: very retro. people coming from all over the world. does the tech industry in london have a pro eu stance? nat: on this issue, divided opinions. we benefit a huge amount from the flow of human capital, but we get that from all over the world. the know-how we need here means that we need -- london could be

a place where you could start global startups in any language. caroline: talk to us about your expertise in china. are we starting to see money coming into the tech sector from that area rather than silicon valley investors? nat: we have investors from all over the world. they are setting up shop and looking for interesting technologies they can bring back. britain strength is to be a place where you can launch into the rest of the world. anna: i know you are in the house of lords. you have to talk about the rest of the country. where else excites you? nat: obviously, we are going through a huge period of devolution and the city is getting more power and

responsibility over their infrastructures. manchester cambridge bristol is hot for tech right now. the future is bright for the region. anna: thank you very much for joining us. we will have plenty more from london tech week as we go through the week. let's head to paris for the airshow. guy johnson is standing by. guy: thank you very much. the big focus will be on the civil side, the big fight between airbus and boeing. how many orders can they take? plenty of money to be made on the defense side as well. best known for its patriot missile system at the beginning of 2013, the share price has doubled. the amazing -- pretty amazing.

they are heavily exposed to its international business. let's talk to the ceo, john harris, good morning. the share price doubled since the beginning of 2013. what will it take to keep that momentum going? john: focus on topline growth partnering. we will be engaging with dozens of customers, hundreds of meetings, all with a focus on understanding what the key capabilities are and bringing our capabilities to the table. electronic warfare, mission support, precision weapons, and cyber. to bring the capability regardless of their need. guy: to an average person, that sounds like confusing stuff. you are very exposed, not just

to one customer. mostly defense companies, lockheed martin. the u.s. department of defense you are not. those meetings are not just with a small group of people. john: we do business in 80 countries around the world. we partner with different -- different suppliers with 66 different countries. we are a company made up of thousands of programs. it is not just one capability that we bring. it is a full suite of capabilities. guy: what do your customers care about right now? is it drown tech -- drone technology?

john: they are looking for cyber capabilities, missile defense capabilities. they want to have the very best in command and control. all of these things, precision weapons, inc. able to effectively engage in combat. -- being able to effectively engage in combat. and they need it now. guy: how do you bulk up inis? -- in those spaces? are we going to see a lot of m&a ? john: we just closed a deal recently in partnership with one of the investment partners which allows us an opportunity to grow in the commercial cyber marketplace. we bring to bear the triton platform tens of thousands of customers they have.

combine that with our cyber capability and we believe we had a great opportunity for growth. in the defense marketplace, the ability to protect networks and products from cyber attacks. that is a significant interest of our customers. guy: give us a sense of how seriously they take the threat now? john: many wake-up calls. you can read the news of the attacks, the cyberattacks. our customers understand the implications of not protecting their networks. they believe they need the capability. it affords them the opportunity to operate in a demanding market. guy: in terms of the bottlenecks you find yourselves dealing with, is it tough to recruit

people who know enough about this? is it tough to find the companies? john: organic growth by way of training and developing the people within our organization. it is about partnering with other companies. it is about buying companies. we are employing all of those elements as part of our strategy to effectively grow and continue to offer the most contemporary meaningful and impactful solutions. guy: thank you for your time. john: great to see you. looking forward to a great show. guy: plenty more guests coming up. over the next couple of days the ceo of boeing will be joining us. we will be talking to the ceo of airbus. check out bloomberg.com. a special page dedicated to the

2015 airshow. anna: we will take a short break here on the program. we will be back to paris. ♪

anna: welcome back to "countdown ." 7:30 here in london. let's look at what is happening on the currency markets. we've got some -- let's not do that. let's tell you what is happening on the equity markets. we are half an hour away from the start of european equity trading. on friday, we saw weakness across european equities into the u.s. session, and again into asia. now we are going to see some weakness coming through once again. we can see it on the futures. it looks as if we are going to be weaker on european equities may be down more than 1% on the

cac 40 and the dax in germany. that is the equity picture. let's talk about what is happening on the foreign exchange markets. euro-dollar, 1.14 at the beginning of that period now 1.12 or so. during the middle of last week is when that started about the concern of lack of rye grass between greece and its creditors. things have not gotten better on that front. here are some of the stories you need to know this morning. greece enters what could be a defining week after negotiations between the government and creditors collapsed on sunday. the euro dropped as the european commission said the talks in brussels had broken up. the focus now shifts to thursday's meeting. boeing and airbus are reported to be close to winning the 220 orders for competing narrowbody

jets at the paris air show. the orders would be worth at least $23 billion. orders are scheduled to begin today. saudi arabia is opening its stock market to direct foreign investment for the first time. the move by opec's biggest exporter comes as the king pushes ahead with efforts to diversify the economy. the kingdom's index is up 16% in 2015, the biggest gain in the middle east. stocks advanced the most in two months in yesterday's session. coming up on the program, a historic moment for saudi arabia. the country's stock market opens the foreign investors. mark barton has the details. mark: the world's biggest oil exporter is also home to one of the world's most restricted stock exchanges. that changes today. foreign investors are getting

their first chance to tap into saudi arabia's benchmark index. saudi boasts the biggest equity market in the gulf. shares are up nearly 15% this year. the trading doors aren't being flung open just yet. regulators say real estate companies in medina are off-limits. they are two of islam's holy cities where non-muslims aren't allowed to enter. but shares are up for grabs, including those in the world -- biggest petro chemical producer and the fortune of the prince. anna: that wasn't marked, but mark will be coming up after a very short break. we are fascinated by this historic moment for the saudi stock market. the stock market opening to foreign investors for the first time. mark barton will be with us after the break. ♪

anna: "countdown welcome back to

"countdown "countdown." the 51st air show kicks off today. guy johnson is there with another guest. guy: let's start with bombardmentrdier. we are going to focus on the planes, the aircraft this company has been pushing the last few years. let's talk to the company's president. you have struggled to get momentum in terms of the sale story surrounding the c-series. is this airshow going to be where we see momentum returning? >> this airshow is all about showcasing our airplanes. we got the 100, the smaller variant of the family, and the 300 as well. this is about showcasing the planes. we are in the home stretch of certification. for us, this airshow is about

bringing the equipment, recapturing the confidence of the marketplace. this is a chance for us to show the equipment to our potential customers and our existing customers. guy: is that going to translate into orders? >> i can feel the momentum already. there is a bit of a wait-and-see attitude. some people want to wait until the aircraft is certified until the aircraft is in service. we are getting close now. people are starting to feel that momentum. guy: what is your target over the next year? what do you need to do in terms of delivering top line for this c series aircraft? >> we have a pretty strong order book already, with 600 or so of interest. we've been very public about saying we want to have 300 firm orders. i think that is well within our reach. for us, i think we are in a pretty good spot.

the airplanes are coming. i think it is going to be incredibly exciting for the industry. guy: how has the industry changed over the last year? the thing that has captured everybody's imagination has been the fact that we have seen fuel prices coming down dramatically. the need to fly more fuel-efficient aircraft probably updating a little bit. what the uc see when you talk to customers? >> i can tell you that the one thing the airlines are focused on is fuel price. while we are in a period of depressed fuel prices, i think if you are buying assets for the long term you want to have fuel-efficient aircraft. i don't think that tempers demand as much as people might think because you are planning for the long term. guy: in the near term, you are looking at cheaper used planes or more current aircraft that

are a little bit cheaper. do you start having second thoughts about the more fuel-efficient ones? >> we are planning out three years five years. guessing at where fuel prices are is very difficult. fuel prices are going to be volatile. guy: what about the cost of capital? over the next year, we are going to see all these raising rates. we are going to see yields going a little higher. when you look at the cost of an airplane, how big of a factor is that? >> certainly, the financing approach for the aircraft is important. leasing companies have stepped in. almost one out of every two airplanes is financed through a lease transaction. we have a significant amount of leasing content in our order book. i think that gives us some advantage.

that comes basically with financing for potential customers. i think it has an impact but it is going to be a small change over time. i think it still is going to be a relatively cheap cost of capital. guy: you don't just make the c-series. what is going on in the other markets? we are showcasing -- >> we are showcasing the entire family. the crj family is one of the most successful. i think the marketplace has this perception that we are more focused on the c-series than the crj. that is not true. the crj is a tremendous family of airplanes for us and we are going to stay true to that customer base. q4 hundred is an example as well. it is a great airplane. it is very versatile.

passenger comfort is great. on the queue 400, we are focused on that as well. we are coming up on our 500th delivery of that aircraft. very focused on the turboprop market as well. guy: when you look around the world, is it shifting? emerging markets are slowing down a bit. >> it does, but we are still seeing strong demand from every region around the globe. north america for the crj program has been the sweet spot. our program is to continue to talk about the attributes of that and how it can be advantageous for emerging markets as well. we see opportunities. guy: where do you think the biggest one is going to come from? the u.s. economy looks like it is starting to come back. europe looks like it is still hanging around the zero line at

the moment. that is from an economic point of view. where do you see the biggest demand story? >> it is a combination of replacement. in the slower growth economies, there's a significant number of aircraft that need to be replaced. that is half of it. the other half is coming from emerging markets, where they need to support their growth trajectory. replacement and new aircraft demand. when you look at the landscape, that is significant in north america and europe on the replacement side, and new aircraft to fuel the growth on emerging economies. guy: fred, thank you very much indeed. the commercial president of bombardier. back to you. anna: thank you very much. 7:43 in london. 8:43 if you are watching in paris. 9:43 if you are watching in riyadh. here are the top stories you

need to know. greece enters what could be a defining week after last-ditch negotiations collapsed on sunday. the euro dropped as the european commission said that talks in brussels had broken up. the focus now shifts to thursday's meeting the session that could decide greece's ability to avoid default. boeing and airbus are reported to be close to winning at least 220 orders for competing narrowbody jets at the paris air show. the orders would be worth at least $23 billion. press conferences are scheduled to begin today. saudi arabia is opening its stock market to direct foreign investment for the first time today. the move comes as king salmon pushes ahead with efforts to diversify the economy. the index is up 16% in 2015, the biggest gain in the middle east. stocks advanced the most in two

months in yesterday's session. that comes ahead of today's 9:00 london time opening. we are less than half an hour to go until the start of european equity trading. just 15 minutes until we get underway for this week. the head of assets at london royal asset management joins us here. trevor, thanks for coming in. one thing crossing in the last few minutes or so. euro-dollar one-month volatility, the highest december 2011. when it comes to greece and 2011, you don't want the two things in the same sentence. are we did very nervous about grace? >> i think we are going to see probably more contagion than we've seen so far as far as bond yields and the euro. thursday is really the crunch meeting. we've had a few crunch meetings but i think this is the one. anna: so thursday is the crunch

meeting for you. we were billing the weekend talks as juncker's last attempt to reach a compromise. if we've learned anything, it is that informal deadlines don't mean much. why does thursday stand out to you when we've got other deadlines in the calendar? >> if they want to get anything through parliament, they have to move quickly. it will take time to do that before the 30th of june. neither side has any insensitive to do anything early, because both sides have to agree to something they don't want to agree to. i think we are going to see volatility during the week. you've got the ecb on wednesday. that could lead to a holiday of the unpleasant variety in greece. some people could find the banks closed. this is quite usual. you usually get the sort of stress events in the summer. anna: greek banks closing, that

does sound like an exceptional circumstance. run us through the story that could unfold. >> it is not happening, but in theory, the ecb could decide to increase the haircut applied to greek collateral. that could force the greek banks into a situation where they feel they need to shut. i don't quite see it personally. i don't think the ecb would want to precipitate that kind of ink. -- that kind of thing. the talk is about thursday's eurogroup being a sort of take it or leave it from the european side. anna: what about the effect on european equity markets? looking at what the futures are suggesting, it doesn't make for pleasant reading. the dax could be done more than one person. the tax down around 1% or so. weakness in european equity markets. as you say, the contagion hasn't perhaps felt very real up until

now. >> it hasn't, but we should get things in context. greece is 1.8% of euro area gdp at the moment. the markets could get heads up about greece. but whatever happens with greece, i think this is probably an intense period, then things will let up again. i wouldn't be surprised to see a trading range over the summer. >> anna: so there could be some movement up. you've said we have to get it in context. this has never been about the size of the greek economy. it has been about the president it sets for the euro area. talking about how the shadow of a greek exit from the eurozone is becoming perceptible this feels like a worrying sentiment. morgan stanley was saying, this is a worrying thing for the germans to be talking about. >> i think it is all part of the brinksmanship.

the germans want to give the impression that they are prepared for greece to leave. the greek people overwhelmingly don't want to leave. it is putting pressure on the syriza government. they've also got angela merkel making noise about spanish and portuguese reform. it is a way of saying they are well behaving children. we can actually make a difference. i think if greece were to leave the euro, it would have a long-lasting impact in terms of the fact that the euro then becomes reversible. every time there's another stress event or election maybe another country is going to leave the euro area. these are medium to long-term issues. at the moment, the markets are penned up about this. you can imagine people saying worried about greece? the u.s. economy is recovering. equity markets could do well for a while. anna: we will continue to put

this story in context with you. thank you. 7:49 in london. saudi arabia is opening its markets to foreign investors today. the move is part of the country's efforts to diversify from oil. mark barton is in dubai covering the story. you had some fascinating conversations this morning about how significant a move we are seeing today. mark: it is hugely significant. this is the last great untapped global stock market. this is a stock market worth $560 billion. this is bigger than the combined value of all the other gcc stock markets put together. this is a bigger stock market than malaysia indonesia holland. russia, which surprised me. in performance as well, this is a stock market that's

outperformed all other middle east stock markets. up 15% so far this year, beating the stoxx 600, beating the msci that gauge of developed and developing stock markets, beating the msci emerging market index. that is important. that is the big goal. that is when saudi arabia will probably be included in the msci indices. that's when the real money floods into saudi arabia. anna: just to be clear, i'm not going to rush out and top up my iphone with a few saudi investments this morning. there are a lot of restrictions on how much foreigners come play a role in this market. mark: not unless you are a qualified financial investor a qfi with assets under management of $5 billion. if you are one of those, you can hold and own up to 5% of an

individual stock. all the qfi's in the world can own up to 20% of a stock, and can only own up to 10% of the market. foreign investors in their totality, that's foreign investors within saudi, within the gcc, can own up to 49% of the stocks. saudi investors still very dominant. saudi arabia going slow. today, saudi is opening the flap. it is not opening the barn door. anna: somebody might top up on my behalf. a lot has happened to saudi since the regulator published the draft rules in august. what have been the main issues? mark: oil. massive decline. it has rebounded since january. saudi arabia's finances have been hit hard. this is an economy that relies

on 90% of its revenues from oil. what saudi has been doing is tapping the currency reserves of its central bank. they've been declining at a record rate. does it matter? they've got $600 billion worth of reserves. the economy is only going to grow 2.5% this year. you've got the geopolitical situation in yemen, syria, iran. don't forget what is happening domestically. looking has been rushing ahead with reforms, reshuffling his cabinet. a lot has been happening. as part of this diversification of the saudi arabian economy, this day really does matter. back to you. anna: thanks, mark barton joining us from dubai. we are just a few minutes from the start of european equity trading. that trading that market was talking about in riyadh

doesn't start for another hour or so but jonathan ferro is here to talk us through the trading day. what is the top of your agenda? i'm guessing it is greece. we've talked about it with so many of our guest. not sure we are closer to answers. jonathan: i'm not going to pretend i know what is going to happen. i think what is reinsurance to is -- what is interesting is the reaction of bond markets. it was as tight as 88 this is points. we are now as wide as 149. spreads this morning are much wider. my question to trevor would be going forward, the big shakeup has been on the german side of the market. that's where the focus has been. is there a risk aversion trade to make? >> back into bunds. if equity markets are down these are short-term views.

the medium term all about growth inflation. i track inflation indicators for the world economy. the revival in the inflationary indicator has been unprecedented. the oil price dropped about a year ago. it is about to drop out of headline cpi. oil has been rising this year. i think we are going to have an inflationary feel to the second half of the year. europe is quite strong and japan has been pretty strong. i think we are going to see bond yields higher. anna: trevor, thank you. jon ferro is up next with "on the move." ♪

jonathan: good morning and welcome to "on the move." i'm jonathan ferro in the city of london. just moments away from the start of european trading. let's get it started. greek talks fail again. negotiations between the government and its creditors break up after 45 minutes. the stage is set for a showdown at thursday's meeting. draghi steps up to the plate. the ec president testifies expected to face questions on the life support the central bank provides to greece. london property gets a postelection bounce. asking prices for london homes rise 5.7%, to a record high.

that's what i'm watching this morning. ftse 100 futures off by 38 points. dax futures off by 150 points. big action in the bond markets. the periphery selling off a little bit. caroline hyde is here in london to bring you the european market open. zeb eckert is in hong kong with a wrapup of asia. i want to kick it off in london with caroline hyde. caroline: just 45 minutes and those talks collapse. let's see how they are opening in europe. currently trading lower more than one percentage point. ftse 100 faring slightly better off by 0.4%. the market is worried about greece. it is worried about that meeting later in the week. the finance ministers meet on june 18. socgen says, don't expect any