>> they will not kick us out because the cost is immense. mark: he stands firm while thousands rally in terms of the government. the referendum is a vote on greece's future in the eurozone and the ecb says they can no longer be rolled out. anna: asian stocks bounced after greece fears grew $1.5 trillion. we bring you the latest from across the global market. mark: chinese stocks closed the

greatest decrease in 20 years after the central bank set up monetary easing for the second time in four days. ♪ >> good morning. we are live from athens. anna: i am anna edwards and after an spirit of we have a live program. greece is dominating the headlines. let's contextualize let and bring you up-to-date. this is what is happening in the asian markets right now. the $1.5 trillion left of global equity, that would be valued in

in yesterday's trading session, the focus is on greece. will they pay $1.7 billion that they go to the imf? that is the that that is happening. we have to bear in mind what is happening in china. a wild ride in yesterday's market session. we have seen the biggest price swing in seven years. the central bank in china is stepping in to loosen monetary policy a little bit over the last 24 hours. yesterday, we saw some stunning moves in the perforating of the eurozone which is down. italy, spain, portugal -- the stock market over in greece closed and will be closed for the remainder of this week. later on, we will be joined by the former head of the bundesbank.

in the periphery, he said the ecb is done -- the last version that will be for banks, what will he say. are they freezing in the emergency liquidity? over the weekend? that is coming up. we will have conversations of our greece no doubt. let's get the latest from the ground. guy johnson is live from the ground. good morning. what did he have to say about himself after the rallies? guy: around 12,000 people were here last night. it was taxing from top to bottom. i fairly festive atmosphere in the square but i would not say the line from the prime minister was effective anywhere. what he said was effectively vote no and that will give us a

stronger negotiating a position. if you are not voting on whether or not greece will be the member of the euros are not, this is about summing different which is a different line which was angela merkel had been saying. he said vote no and we will be having a shawnda negotiating position. he is and that negotiating position where can be done from greece. it is not the final one but up final due will be done. anna: guy, how likely is greece to make the payment that we were referring to earlier on? guy: um, it is unlikely. i think that is the best way we can put that on across. mostly will don't expected to be made.

what is interesting is if we will hear from the ecb. it is on the papers talking about the impact -- and the fact it cannot be ruled out. if we were see that payment not be made, it can have an impact on the ecb's relationship because of the capital story] that is there. we don't understand how the ecb will be shooting that but it is worth listening what he had to say last night. some really interesting points but the focus of attention is on the euro and whether we will be a member of it in greece for longer. listen to what he had to say. it is a stark contrast what angela merkel had to say. >> they will not kick us out of the eurozone. the cost is immense.

economic cost, the financial burden -- if the eurozone is dismantled because of a country in default often to the european bank with great amounts is immense. guy: he is talking about the default. is talk about membership of the eurozone. it is not see any correlation between the issues. he still thinks they can go back despite not maybe even paying the imf despite not going up to their obligations and ecb. he still thinks they can negotiate despite everybody else think andy zack op. cit.. anna: when the referendum is not what was question, thank you. guy thank you. chinese stocks have stumbled to the lowest levels and close to three months and the shanghai composition is down 24% since june 12.

when will markets automatic and how will the situation in greece play in? zed is in hong kong. the markets have to do with this and now the specifics around china as well. run us through it. zed: china pacific -- participated with a significant amount of market value but if you look at the situation right now you would say what is selling off? the buying activity -- the shanghai composite -- gaining 3% which is reversed in the earlier drop of about -- 5%. the market valley globally is wiped out. what you are seeing is a bit of relief removed even the germanic swings we've seen. china is a ruthless bottle market and the steepest dark market in recent days since 1996 -- a lot of concern of this market about what happened next.

they are money we have seen in recent days has been a margin is an finance inc.. they are being called then it has been called a recent must because all the recent investors barcode on the margins who finance the marshes. gains have been impressive no doubt. 25% in the outside which continues. the dramatic swing so you volatility is a big concern an even bigger concern is that recent actions by the people's bank of china, not necessarily having an impact in terms of stabilize him market. no matter how much margins finance the market is still subject to the fact they will be called in. to bring you up to speed what is happening elsewhere because you are seeing gains for the regional market. we start out firmly lower for asia-pacific equities the you

can see the rotation comes a turnaround, the only market that is defining thailand -- relock a, the philippines, lower oil prices is giving his sake in. -- safe haven. it is those tech stocks the stable letter dancing, lenovo is up 4%. 4% gain. airlines lower, the casino shares moving today -- as well as galaxy entertainment. what is happening in tokyo -- they are closely watching the japanese railway today. it operates the train between tokyo and osaka, very tragic story of a person setting himself on fire on the train. moved the stock briefly but we understand things going back to normal. their moving today in the tokyo market. 8%. sony is intruding to the decline

and it has dropped in a percent move for shares of sony. that is very close. that is the close look at the market. back he appeared anna: -- back to you. anna: thank you. just breaking in the last minutes -- sony is to raise a little -- ¥400 billion in shares and other shares according to -- it will share in overseas markets in japan. that is the need we are getting through right now. it will raise up to 325.5 b in yen. what is happening on the sony share crisis right now -- is have any impact on the share price over three days. in terms of where that lead to the sharepoint competitor in the close, yesterday significant move coming down now. 3.8% in the trading day.

we believe that there for the day;. . coming up later today, economic data out of europe. implements for june is that 8:55 u.k. time. the final reading for the first quarter -- a -- 9:30 a.m. this morning . lost to dock about on the go income including what should the greeks do on july 5. we have the question today how should greeks vote on july 5 and if you would like to get involved in the conversation leave a comment on twitter and defined the quote anytime you want. meeting go with anyone you want. this is all about eurozone membership. or about a deal that is on the table with creditors. we will take a short break. coming up grappling with the

new reality of capital control. we will have more on the views for math -- from athens. ♪

anna: welcome back. 40 minutes past 7:00. here are the story seems to know. a deal restricting iran's usual activities would not be extended. u.s. and european officials say progress is being made and they expect it to come to an agreement within days. china's central bank is making action in monetary policy. $5.6 billion into the bank and open market operations and low lending rates on the funds which comes after interest rate failed to stop the biggest mountain chinese stock since 1996. 20% of the annual shanghai comes

index has been since then. the babylon's over -- the battle line -- 1.8 euro million debt has not been met. the cost would be immense. the comments on a television interview came at 12,000 people gathered in central athens to support his call. let's get back to greece. let's get the news. >> thank you. angela merkel and the eu officials say very clearly this is a vote on whether or not greece remains a member of the eurozone. let's get another voice in the conversation. lenny joins us.

>> thank you. guy: this is not the vote on membership of the eurozone yet angela merkel says that is exactly what it is. which one of those is true? >> i would say it is a vote about eurozone membership and greek people should think very carefully before counting their votes. the financial minister pledged he would get greece the eurozone and bring a better deal. he is feeling in both counts. guy: he says this will strengthen greases negotiating tactics. you think it is greece democracy. >> the problem is it is completely depleted right now because he left the negotiating table unilaterally when i was close it finishing a deal and his roles was very similar to the creditors opposed -- creditors proposal.

i don't think there will be a lot of people waiting for them to finish it must she makes the first move. we hope reasonable people will prevail. guy: the square was pretty packed last night. the rally tonight with the positions being made to was the eurozone membership, how will that go? flex it will be very tight -- >> it would very tight. there were definitely a missions and the problem did not succeed as it should have but they were greek ownership on the other hand. still, there is no clear view as to what greece should do next. there are very high divisions -- in the society right now. we will see. guy: if it does not go the way he wants what is greek find

itself in this it would -- in the situation? a democracy let democracy -- someone has to go back to the table. >> we know that the government is not interested in the national government. the problem is with a parliamentary -- who will actually make the most -- how do we make the revisions from a government that enjoys parliament to really enjoy the -- parliamentary enjoyment to another government that is it against greek democracy? guy: that puts greece in a very difficult position. is it almost impossible now for greece to go back and negotiate or do we have to say no or yes? we are not accepting this deal? is this negotiating over?

>> from the part of the creditors, it is over. yesterday -- if the greek and government wants to, it has to work around that but it will have to make the first call to go back to negotiating table. no appetite for this. this is a very weird deadline we are witnessing and we who knows how would we resolve. guy: is it changing nature of what is happening here? it is changing minds on the future of the country. >> good point. we are in a frozen situation right now. one single decision to make sense of other future. this will make everybody think twice. at the same time, there is a very strong rhetoric that this is what the creditors hold and

this has been gaining ground day after day. it is amazing paired guy: thank you very much. joining us from greece. it will being cradled be -- it will be an incredibly busy morning paired with think it is midnight athens time around 5 p.m. in the evening over again washington paired that has increased -- crucial. back to you. anna: yes, we will see. it is 21 minutes past 6:00 paired leading up to crap the patrol. of we have chart of the impact on the cities in inhabitants. let's listen. >> 50%. this time, it is 80% there

because i don't have any money. >> i would take how much it takes the take a taxi. the way for the bus about 45 minutes to an hour. what do they going to do with their money. if they have money for five days or more. >> next week if we are not paid by the government all pharmacies will be affected. next week we are in europe or not. they will have the money to pay. we will see. >> in general, you are amounts of produce -- fewer amounts of produce.

these last days, the problem seems to be worse and worse. >> we have the same amount of tourists. i am not concerned about two pourists, more so about the greeks. you have everything prepaid. they can do everything but on us. -- but not us. >> we are afraid for everything. we are not social or smart. that is all. [sigh]/ >> all the greek people love this country and i want -- i want to see my son every day.

please, europe to people. help greece. help the greek people. anna: from the streets in athens. let's take a different view. germany is greases biggest creditor -- greece's biggest creditor. hans, good morning. how is greece's default to the imf is being received in germany? hans: you get into different territory. it looks like when he was addressing party leaders yesterday did not actually talk about a greek exit but he did say -- according to party officials -- europe can withstand the contagion. he does not think there is much.

on the back of that, it was made privately it seems like he -- the euro is not getting clobbered this morning. quite a bit of blame towards greece -- he said the greek government's behavior has been beyond belief and a one not be able to destroy europe. we just heard from ralph brickhouse, he says his view is europe were the stronger after whatever happens a greece. he says we be of a core european value and you can kind of listen to this especially throughout the day yesterday in germany a cure will europe, it can be stronger without greece. there is a matter of public debt. another key merkel executive said it will be not be going away and germany has to lose that. it remains -- tackle -- look at what germany owes.

it has $58 million when you compare it to france which is near the $2 billion. italy is not exposed at $39 billion. the finance minister in italy tweeted may have the number at about $35 billion. we are talking about in the billions and a lot of public debt which will not go away for any of these countries. this morning, we heard that the head of the institute said this is a big opportunity to read work the entire euro zone. there is an emerging viewing germany which means europe can be stronger but only after greece leaves. anna? anna: thank you. we will be speaking a little later sam. interesting to get the views. coming up a defiant strokes off the exit.

we will bring you more on economic. gabriel stein is back. we have some fascinating views. stay with us. ♪

♪ anna: welcome back. let's bring you up-to-date with was happening with the equity session. we had equity markets going higher, even chinese markers having going higher which was not the case. after yesterday selling, one point $5 trillion loss by global equity markets and yesterday's session. will greece pay the imac today and? -- i am out today -- i am a to imf today?

that is a quick look at the markets story for you. the stories he needs to know this. morning. both agencies asked that six ready puerto rico the default. officials will seem to delay payments on its $72 billion debt for a number of years. apple's music streaming service debuts thatoday. after a three month trial, it will cost nine dollars and nine cents a month.

greece owes the imf. alexis tsipras call to which are creditors can -- but positions. elliott is out of the headquarters. we thai baht talks and thousands of supporters have been gathering. elliott: that is right. his supporters and supporters of as part -- parties rallied here to --. the protest songs are being heard.

despite the concern many of them bearing the same message which means no. a lady said austerity would mean the death of the greek people. a young guy with a nose ring was telling me he wants to be in is -- in his own country. another one was saying a warped -- no more sacrifices. that was the main measures -- measures -- message.

the government that over one message was in sync of the elected people. they said no to the conditions that are being demanded by the creditors of greece. anna: the other side -- what is there rally? >> this will be the nays that are rallying to show unhappiness with how he has been handling the situation. this is a going on since the government was elected and they had not made any progress.

they would how to accept further reforms of the greek economy in exchange for a continuing with the bailout program. they'll they will see greece in a better position and have capital controlled that we are seeing. they are due to remain in place until the referendum is out of the way on sunday. anna: thank you. let's go over to ben who joined us from madrid. good morning. whether contagion is the market what does the prime minister was -- respond to the weakening developments we seen in greece?

ben: he was irritable of other developments in greece. he said look, if you don't collect the series cover -- government with a serious -- this is what will happen view, anna: when it comes to support for the electing greece or spain, that explains why you taken a -- a hard-line what is happening in greece. >> exactly, it is happening at the end of this year. he has lost the support and the paul's. he is facing attacks from the right of his party and the former prime minister. and also from the ally in spain

so he is very aware any concessions, success that' i s won will have a deke ross tashard recross -- will have a recross. anna: thank you from madrid. another angle on what is happening. another voice -- gabriel stein is with us. greg to see -- great to see you. in terms of greece, we have a number of hundred -- opportunity ties. country symptomatic currency unions and urinalysis -- the events have not been as collect -- calamitous. gabriel: currency unions

dissolve all the time unless you are involved in civil war or a change from say a central plant economy to a market economy. it should not be dreadful. czechoslovakia fell by 4% and was higher than before they love the country. britain, ireland -- no one back to the. of -- no one no onebacked it. greece has lost only 5% of gdp. -- lost 25% of gdp. that is too late now. leaving the euro will leave greece a fighting chance to return to grow and to do so on

the conditions which are favorable like it can be done. that does not mean their kobe no austerity. -- but there will be no austerity. it will not be the disaster people are talked about. a big danger with greece leaving his you cannot leave the euro and that is what we have discussed. anna: deputy chairman of the federal advisory committee in germany deputy caucus leader he is saying europe will emerge stronger from the greek crisis and you are pointing out politics if greece were to leave the eurozone which is positive for greece. what would make europe stronger?

>> the key thing is if greece these and -- maybe, maybe we will look at it and see that it was faced with future challenges. if greece leaves, it will see a multistep reaction -- the reaction will be what we saw yet -- yesterday. them, very quickly within one or two weeks, you will see people saying wait a minute we don't have crisis to crisis -- we'll have to concentrate on issues. the crisis -- anna: willing going to the liberation -- you will it going to proliferation? >> no. there is an impossibly -- spain -- the the rise of politics or

economics favor in risk premiums or danger of a public scope. i am sure that will happen but the crunch will come of the next crisis when somebody will say it was next? anna: thank you. gabriel will stay with us. yes fascinating comparisons. let's talk about aims towards iran's nuclear program in exchange for nuclear sanctions. the world powers have until the lannett today to do a deal of the deadline will be probably missed. ♪ >> a framework from three months ago. we may be in for some more of the same. iran wants economic sanctions

scrapped. were power say that only happen if sectors from begin of energy and see and what toronto giving his word. the ieae will have free moaning. access friday a place of inte rest. military sites will be off-limits, something will power say would be a dealbreaker. the nuclear watched allah be asked to assess the possible military dimension from the image would work which is something john kerry downplayed earlier this month. if a deal is done, congress has 30 days to repeal it and was two years of talks on a new clinical shares and are want. when it comes and goes deal there is despair. anna: more on the story from

ryan. good morning. another self-imposed deadline but this one being missed. ryan: the deadline is that the negotiators and saying that think they get have a deal within the next couple of days. and recently, we are hearing people talk about perhaps july 7 or july 9 because if the negotiators, the world powers, get a deal enemy nice -- -- the unit since getting deal it would make sense to get it done by july's -- july 7. there is an impetus to the deals. the head of a ron -- iran, foreign minister traveled back to tehran and is expected to

rejoin the talks because you don that -- ian's poorness there was the talking about that here that is the pace of sanctions. in also exactly how one verifies whether iran complies like ronald reagan did in the 1980's. those of the two big sticking points. we could have a deal within a couple of a days there. anna: has been going on for a while. ryan: we have seen will go from 65 brand to about 62. iran is part of that -- because there is concern about supply growth. tomorrow, guessing he go to for -- water nine 3 billion barrels.

the expression did is would fall by another 2.5 billion barrels but that is a leap really barrels less above the five-year average's others storm off lot of oil and that is the reasons why -- it is the least bullish. even you don -- iranf falls. anna: how should greece the vote on july 5? you can vote on my twitter. you can agree with either. we will be looking at what impact cap control left resells on -- on greece markets. we will be seeking -- speaking

to the group after the break. ♪

anna: welcome back. here are the stories you need to know -- channel central bank has released actual operations and lowered the lending rate. this comes after an interest rate cap failed is that the biggest around and chinese ends early 1990's takes which wiped more than 20% of the shanghai comps and index on june 12. the battle lines have hardened since it enters the second they have cap of control and the 1.5 billion euro at the -- prime minister alexis tsipras would not go on the europe because the cost would be "immense".

to all thousand people gathered in central athens for a new bailout deal. let's get the view from brussels. joe joins us. good morning. what is the message coming from the eu? joe: the main message at all the officials are trying to maintain is the dorsal open. this is the last day of the european portion of the greek bailout program which expired at midnight tonight. the european commission president and other officials have tried to us press -- express that the dorsal open for negotiations so that if he would like to come back to the table they are willing to restart negotiations. unfortunately, the rhetoric -- means it will probably not happen. anna: what is brussels stance on the referendum we would see? if people vote yes would that

be considered an extension of greece's aide program? jones: they spent yesterday trying to frame the referendum as a vote on the euro membership and on greece's place in the european union. they are trying to get to the greek people and say this is up to you to say whether you want the in the euro or not. whether they change the fact they want yes, the referendum will be on this proposal for the current bailout package that greece has and a proposal that was on the table friday night that was walked away from. that is what it will be on. technically, if there is a yes, that gives the government and mandate to continue negotiations. it is not an automatic extension of the program but it gives hope that things will get better that they will be able to then go forward and reach a deal. anna: thank you very much

jones, from brussels. let's broaden the conversation. we have some fascinating stories from the website. gabriel was the with us. let's go to you. great stories. gabrietlk: some of my colleagues were looking at the efforts going on in brussels to try to build a tech center. and one of the people behind it is back by google really seeing a lot of talent and opportunity. what is really interesting though is he here this line from everybody these days -- we talk about people in paris and they want it to be a tech hub. it really shows that local governments where they see the -- see their future should be.

anna: it is a startup culture. what about the price of barbecuing? it is the fourth of july -- which we don't celebrate. >> it is all about commodities prices. it is going towards 30 degrees in the u.k. the good news is it is in decline which is what we are reporting today. one of the reasons is because the oil price -- oil prices lower. barbecue is cheaper. what would be higher is beef. anna: barbecue is the savior of the weekend which we now. women talking for a while about the changes that have come to the big european banks and how outgoing the guys that are making the trading or perhaps building that business income is slightly -- people have a different personality. >> the boring person?

anna: i don't want to say that. >> i asked the question. no, the job is to rebuild trust with regulators. rebuild the operation scum of the business, people coming in from insurance industries lawyers, reap. it is on about the traders that can remake it. anna: a big culture change. tim, thank you. gabriel, back to you. we have been talking about greece. we have heard a lot this morning about the vote and what it will be about on sunday, the weekend. what will it be about? what implications will after the md creek -- for the everyday creek? g; gabriel: let's assume the vote really is an in in and out vote. that is what it should be. yes means i will stay in the

euro. no means i can activate -- take this anymore. no, a no vote means the greeks are not telling the institutions no more hardship or negotiations -- greases on its own. if you were to leave -- live cap the control anyone who is any money in the greek banks is cursing him or herself or not stabbing himself. you cannot remove the capital controls. a yes vote means we are back where we were. it empowers the greek government to contain opinion -- ntu negotiating. -- continue negotiating paired we have seen these negotiations are much too prone to being

suspected of being in bad faith in both sides. i am not saying they are, on this say they behave as they are. noi solution. the -- i don't know what is going to happen -- i put all my money before last weekend -- if everyone put all the money in greek banks which is likely to happen if you lift capital controls without a credible -- credible plan for the future -- greek banking system collapses. that credible plan will not be there. anna: we will return to the topic in just a moment. just to bring you some breaking news coming from greece -- the extent of the controls we are seeing on greek every live -- pension seven were draw -- withdrawal at 150 euros for this week. the great branch -- branches

opening this week with no cards. further details coming up. countdown continues. we are back. we will be live with you in athens, frankfurt and berlin when we come back.

>> they will not kick us out of the eurozone. let me explain why -- the cost is immense. >> thousands rally in support. angela merkel says the referendum sunday is a vote on greece's future in the eurozone and the ecb could no longer be rolled out. anna: asian stocks bounce with a $1.5 trillion stock. we bring you the latest. guy: chinese stocks posed the

biggest increase since the country's central bank had easing for the second time in four days. ♪ welcome to countdown. we are live from athens. anna: anna: i am and that edwards. -- anna edwards. what are the big stories is greece -- leading to a big market movements. this is a picture of what is happening across the asian market. things have changed. we are seeing a bounce in stock in the asian session following $1.5 trillion being wiped out global -- global stock markets as the global picture. will greece managed to make that $1.47 billion payment to the imf? this is a picture of across asia.

even the chinese markets is up light 2.7% which was not the picture an hour ago. those markets were negative territory during the day. we've seen it taking perfect -- further action. today, in terms of markets the greek story is still very much in the minds of investors. axel, formerly of the boom is bank, -- bundesbank will be joining us here on bloomberg a little bit later during programming. he will have much to say about the ecb, whether that is qe or freezing of emergency liquidity program. let's get more on the greek story from guy in athens. what did prime minister alexis tsipras say about pro-government rallies in frankfurt?

let's go to you on what he has been saying. guy: i am sure what is being said in athens will be heard in frankfurt. let's first talk about what we heard last night. he was climbing everybody but his own government. he was making it very clear this referendum we are expecting on sunday is not a referendum on in or out of the eurozone. listen to what he had to say by the very subject. >> they will not kick us out of the eurozone. let me explain why -- the cost is immense. the economic cost, the financial burden if the eurozone is this mental because of -- dismantled because of a country in default -- often to the european bank with great amount is immense.

guy: that is not what we're hearing from angela merkel. they are saying effectively this is the relationship -- are we going to change it or not? that is what the vote on sunday is about. he was really making it clear the banks have closed because the institutions have not offered him his -- expansion. -- expansion. blaming everybody else but the government. guy: what about the prospect of a the imf the money that is due? what is the latest on whether greece will make payment? guy: we don't have a confirmation. lots of people are talking about it. the payment is not going to be made. we don't have a confirmation of that from athens. we will wait and see the expectation but it will not be made.

the invocations of that are quite significant. we have a great he's out this morning talking about the idea that the one voice we have not heard from is from the ecb and that probably is the critical voice we need to hear from so that is the story at the moment. two unexpected payment. we will find out later but i suspect there will be a lot of noise between now and then whether or not will be made or not. anna: thank you. let's go to paul. what is the latest indication from the ecb on what it plans to do today? paul: it will be watching very closely. guy notes we don't know whether the ecb will determine it as a default. it does not have to they just have to wait and see whether everybody else says that and reacts accordingly -- we don't know what it will be but it will be something that will happen. when policymakers meet tomorrow in frankfurt to review the liquidity assistance.

they can keep it going even as a missed payment in if they believe the banks are still solid or deemed them to be. another issue is what happens with the great government. they are paying money to their own central bank which is quite serious because it is not -- that is what we have to look at. as for what happens after the next couple of days, intriguing comments from these second of board member last night -- executive board member last night, the referendum is often the a majority for a political deal if the greek people decide to vote in favor of the proposal which was incomplete -- it has room to keep it in the euro but he said he can no longer rollout the belief. anna: thank you. guy johnson on the ground as well.

that brings us to the question -- how should greece vote on july 5? it seems like the prime minister are a different pages after what is being asked in this referendum. you can find us on twitter. is this about the future of greece in the eurozone or the specifics on what is on the table for the creditors? you have the say. let's get -- gabriel stein is still with us. we were talking up the impact on everyday greece whichever the way it will go. what are your sources when it comes to the currency?> is this a near-term possibility? gabriel: we just heard that -- we know that it is 60 euros a day.

pensioners can get 120 euros per week so they can get two days worth of money per week. greece is not the country where the use of credit cards is widespread as it is in britain or the united states. we are talking about close to very much of cash economy and that means there is will be a crash -- cash crunch. if the raiders, there will be an issue of negotiating ious either issued privately. i know i have 500 euros in my account i give you and i are you for that and you use that to pay your grocery whatever it is, or a government issued script. the key with that is will the government if it is prolonged, will the government allow you to pay your taxes with scripts? if they do that, it is a new currency for sure. anna: it is the means the government is essentially introducing another currency.

gabriel: it is a fancy word for saying there will be other bits and pieces. and says something like this is equivalent to the euro ir once capital controls are lifted, or six month after, you can swap it. will it hold its value? almost certainly not. anna: you have done a lot of work on the experience of cyprus. you would others have pointed out the big differences between cyprus and greece in this regard. how long will capital control have to be replacing greece-based on our experience? gabriel: in cyprus, they lost it for a couple of years to a government that was firmly committed to doing everything it was told with population that wants pass initial stages was

supportive of that. you have it in place and greece compared to iceland. capital controlled again. in order to lift the capital controls, you need people to believe that there is no need to rush in the banking system. there is no need to richer all your money and send it to broad. i cannot see that being the case in greece were a couple of years , easily more than two years. i could be wrong. it could be something happens -- there will be clarity or the creeks will leave the euro. anna: what about a yes vote in the weekend or we are back here increasing the amount of money's? gabriel: they would have to make a commitment saying halloween the yes vote which -- following the yes vote we promise to

provide all the funds necessary -- probably saying -- believe me it will be enough to stop the greek banks, around the greek banks, that might work. anna: that will be the substantial intervention by standards. gabriel, thank you. coming up later in the day, a lot of data out. u.k. gbp, the first quarter at 9:30 a.m. later on, the eurozone in employment which will be out. first, coming up, another deadline looms but this time for nuclear deal with iran. will there be enough time? what will happen with the deadline? we will have more. ♪

anna: welcome back. here of the stories need to know this morning. a deal restricting iran's nuclear to these would not be restricted today. however, u.s. and european officials say progress is being made due to a comprehensive agreement. china's central bank is making further actions to loosen monetary policy. $5.6 billion into the market system and lowered the lending rate. that comes as the weekend failed to stop the biggest rout which has stopped more than 20% of the index. the battle lines over greece has hardened as the country into the second day of capital controls

on the deadline is 1.5 billion euro. the prime minister said his country will not be thrown a of the euro because the cause would be "immense." his comments came as 12,000 people gathered in central athens to support his call to reject credit conditions for new bailout deal. some banks will open today for pension withdrawals and limited to 120 euros pre-week. let's go back to the iran. story. the final stretch -- the islamic republic and raw power seven till the end of today to do with deal -- the deadline will be missed probably. >> massive talks bring a dramatic venue. that sums up the negotiations that has been brought up three months ago. as the deadline for a long summer payment approaches there'll be more same. the once crippling economic

sanctions was a a deal to the greatest of the capacity. they can only happen once expected is from the international atomic energy agency knows that iran is giving his word. to do that, they will need free reign to rome the facilities. and access to any other places of interest. some leaders and politicians say military will be off-limits something world powers will be a dealbreaker. the watchdogs will be asked to approach military dimensions enrichment work, something u.s. secretary of state john kerry downplayed earlier this month. if a deal is done, congress would have 30 days review it. this will be subject to delays almost two years of talks. never once have they met their deadlines. on midnight june 30, it becomes that i do feel --

anna: let's get more with ryan. another deadline coincidently also today and i met payment but this is a self-imposed deadline. rytaan: this deadline is dead and the new deadline might be july 7. the idea being that negotiators think they are close enough to a deal they can actually get one of within a couple of days. if they want -- in the obama administration want to deal in vienna and want to take it back to the congress, it would be great to have that by the seventh so they can have it through congress before holiday. there was on a impetus. we have the president's brother joining the iranian foreign minister. we have the head of the atomic energy agency and the iranian foreign minister. that is where he went on sunday this reason that -- because

we're still have obstacles outlined by the screen leader of iran and that is one, access to the sensitive sites he says he does not wanting unconventional. two exactly how quickly we will get sanctioned relieved. the leader wants quick. negotiators, the world powers some are saying it has to be staged and they say privately that has been agreed to in any case. there is a lot of hope this point but it will not be today. anna: the oil price? ryan: is the going down for the last five days. part of that is eitheriran . iran exports one billion barrels a day at right now. greece is also a factor in the concern with greece is is the

demand picture and that is one of things if you listen to ipec carefully they haven't bullish about is the demand picture going to remain as robust as it was if greece does go belly up and there is contagion within europe? but, generally speaking, the concern is mostly about that -- you look at the united states and the inventories. they have come down to about 30 million barrels we have about 493 million barrels a lisa go and we're down to 463. we will get new numbers tomorrow that tells about last week and the expectation is it will reduce still more but we are still well above the five-year average and that his wife you look at the hedge funds, they are still bullish but they have the least amount of bullish bets that suggest the price will be go up in three months. anna: thank youm. gabriel, how does this go into the feds mind is? as well/

? gabriel: the question is irania n oil, will that stop the fed from raising interest rates? it will not. they will still raise rates not once, but twice this year was remains on the forecast. anna: twice this year. gabriel: because they will look beyond the temporary downward pressure of prices that increased exports will produce. this is partly also -- it goes back to the whole different -- are we a secular nation or just a balanced sheet recession? in my view the first view, it is the latter not the former which means you have to normalize interest rates, but if you cannot when the economy is doing well where on earth are you going to do? anna: even if inflation is low? gabriael: that is perceived to be

a temporary answer because it is not relevant as was said. it isn't not what inflation is doing what matters, it is what inflation will do in two years or what the fed believes it will do. there they think it will head back towards the targets. anna: some final thoughts on greece -- read tweeting today -- declaring how he would vote in a greek referendum. he suggested he would be in the no camp. which party do you think greece will choose? gabriel: you are putting me on the spot. chris comes the shelves come i think the greece will -- greece will vote no andd i do think that it is the beginning -- i

think it is also the beginning of the process which ultimately will make the euro survive mainly if he gets rid of all the europeans. anna: thank you so much for spending your time with us. get real-time. -- gabriel stein. let's get more on the great story -- hans nichols is standing by. how is greece's default and to the imf being received? hans: there is a view they can cordon off the contagion which is what it was being told to lawmakers yesterday. the finance ministers said something similar in france. he does not see much of an impact on the greece situation on the greek banks. in germany, isn't it anger. yesterday the public broadcaster was told the greek

government behavior has been beyond belief. it will not be able to destroy europe. he went on to emphasize it will remain of the important part of europe and it was up to the greek government to quickly find a way to the secured the future. a key merkel ally is talking about the debt will still have to be retained. a lot of that is about 30 years out so when they released the budget tomorrow, it is unlikely they will have to resign -- reconcile it in the budget. the idea they had to pay this money is becoming clear. the total exposure for germany -- france is about $42 billion and in it is $39 billion. one other emerging cross is coming up. that is we have heard the idea that europe can be stronger if greece exit, you will have rules

that mean something and you can have the european union that emerges in a better position. that is the european union without greece. anna? anna: thank you very much, hans nichols, from berlin. how should greece vote on july 5? in the guardian, an economist talking about how he will vote. he would be in the no camp. it would bring about the oppression. no would be a more hopeful feature, destiny in the hands of the greek people. he is on the side of the greek government. they have intuitively the article this morning. we have live shots of athens this morning. we have the assembly lines outside, as we had yesterday in. people trying to get their 60 euros a day out of the banks. if you don't have access to that

machines, are they able to go inside? later today some have been opened. 120 euros per week. not for allocation of 60 euros per day. we will see what that brings when the banks to open up. the intention being getting it in their hands. in terms of where we are in the markets, happen our away from the european equity trading day we have the european market heavily in the red yesterday. asian markets trading in positive territory were now. a pretty decent session. some of the chinese markets turning things around towards the end. we had the song high -- ai constant -- shanghai concert up -- composition up. we will be right back as there is $1.7 billion that payment. more on that conversation when we come back. ♪

anna: welcome back. just 7:30 here in london. time to check in on the european equity markets. another day of weakness at least at the start of the trading day. perhaps the euro stocks cooled down but the ftse 100 looks to be starting about half a percent down. the dax also looks to be under pressure. that follows something of a bounce that we saw in the asian session but some of those gains we made earlier are coming off a little bit.

not the drastic losses that we saw yesterday by any means. the asian hand over it was fairly smooth but rings are not looking fairly -- terribly positive. let's talk about what is happening in the bond market situation. just enough to tell you that things are not moving again as much as they were yesterday. little bit higher in the 10 year yield and the italian bond but not by a great deal. the tenure german bund moving a little bit lower. a little bit of that risk aversion trade we saw yesterday. 7:31 in london and these are the stories you need to know this morning. china's central bank has taken looser action to ease monetary policy. they've lowered the lending rate on the funding. that comes after that interest rate cut on the weekend fails to stop the biggest route and chinese stock since 1996 that

have white more than 20% off of the shanghai composite index since june 12. apple's music streaming service debuts today. it will offer users access to 30 million songs and offers -- goes head-to-head with spotify and pandora. the battle over greece's future has hardened as the country enters its second day of capital controls and that deadline for a debt repayment looms. prime minister alexis tsipras says his country will not be thrown out because the cost would be immense. his comments in it television interview came as 12,000 people gathered in athens to support his cause. some banks will open today. those are limited to 120 euros per week. let's stay with the greek story but get the view from brussels.

janice hagan is there. the chinese premier paid brussels a visit and he had a lot to say about greece. it is interesting because a lot of people are looking to the chinese and wondering what interest they might have. >> they have a lot of interest in greek and europe in general. they are big holders of european bonds and the prime minister who was here for the summit yesterday made it clear that he wants greece to stay in the euro. he said that is the best thing from his point of view and he urged european negotiators to get back to the table and come to a deal. even before the referendum. anna: if the greek people do vote yes, would that be considered a request for an extension? guest: that is the way that it would look.

it is not automatic but it would certainly say that the greek people want mr. tsipras administration to go back to the negotiating table and finish the deal. this is the deal the commission put on the table last friday trying to come to some kind of compromise. but mr. tsipras walked away from the table and that has led to all of the capital controls. if the greek people were to say yes that would reinvigorate the talks. the problem is that the program is due to inspire today. it is unclear what the legality of the proposals art once the program excel -- itself expires at midnight tonight. that is still something that needs to be worked out. anna: it is been a wild ride for chinese stocks and the shanghai

composite is down 24%. when will the market bottom out? how is the situation in greece playing out? some interesting crosswinds coming into the session. that would be the greek story but this is day to -- two. continuing action from the central bank in china. >> absolutely and that continuing action from the central bank failed to contain the stock market but look today what is happening. a four percent advance right now. 1.35% advance for the hang seng. we started the day firmly lower with greece waiting on the minds of investors but across the asia-pacific today stocks are advancing. part of this is optimism that some sort of last-minute deal will be reached. and china.

the most volatile stock market in the world after greece. yesterday seeing the steepest drop since 1996. nevertheless, the chinese authority feels poised to do what they can. that includes restriction to financing. it led to intense the selling pressure yesterday and this morning and the central bank has indicated that it will take additional action. you may have them allowing insurers to buy shares among other measures. the chinese stock market declines and they don't seem to wait too much on investors overall but for now it is a day of stocks advancing for the msci asia-pacific. it is a volatile market and we note that things can swing the opposite direction. anna: thank you very much.

we are minutes away from the start of european equity trading. joining us now is the head of the european investment office. thank you for coming in to talk to us. i know that you at ubs put the chances of a grexit at 40% a little while ago and that was before the weekend. where do you stand now? anna: -- guest: closer to 40%. anna: is that quite conservative? guest: you have to make the call. is it best case that greek would leave the euro or not? we are still less than a 50% chance of greece leaving the euro. 40% there about. -- thereabouts. anna: how is this being received by your clients in terms of your investment strategy. are you looking for the

referendum? are you looking for big changes as a result? guest: clearly the fact that it has taken so long to get to this point has created a lot of uncertainty. we thought there was a reasonable probability of a referendum because it was a way for the government to get out of the corner. they have to which back and have a haircut on the debt so how do you get that out of that situation knowing you will never achieve the process. we thought it might come earlier so that there was time within the program and the imf payment and everything else but that has taken longer and now it is creating a lot of hostility. the best case is that greek people will come back with a yes for the program and that would open the opportunity for a deal

and greece remains within the euro. but clearly it is a very unstable situation. anna: asian equity markets are bouncing today. that is an incredibly big number but it is not a lehman moment. is that because it won't become a lehman moment or because we have factored in a grexit? guest: i think the first is a more valid point. it will not be a lehman moment. if you look at europe today and where europe was four years ago it is totally different. the economy is growing. and in the u.s.. china is slowing down but the central bank is doing a lot to monitor that and the ecb has a lot of tools to monitor the situation. there are a lot of tools to make sure there is no contagion to

the peripherals. it is very unlikely at this stage that we will have a lehman moment. anna: a lot of work, the outright monetary transactions. the ability for the ecb to directly purchase government bonds. talk us through how that would make a difference? they could use that on peripheral bonds. guest: usually the way that the market put pressure on government is by refusing to lend money and then the spreads widen. then the country finds it difficult to refinance themselves. if the ecb can buy government bonds for this country, it would put a cap on borrowing costs and that is the longer an issue. anna: how does this factor in right now? you must be very mindful.

the imf recently called on the fed not to raise rates. slowing china and greek talks progressing and now they have fallen apart and we find ourselves in this situation. guest: dudley was in the press overnight saying they are watching the greek situation as well. the fed is clearly talking to the ecb and if the greek situation becomes an economic issue then the fed is likely to delay hiking. dudley was saying that september or december. the door is open for a delay if the global economic outlook looks different. it is amazing how big central banks have been playing over the last three years.

we are the fed and the ecb and the bank of china playing a big role in monitoring uncertainty and volatility. anna: thank you for joining us. the head of the european investment office. greeks are lining up to withdraw euros. one of the central locations in greece, the greek flag flying. they troll -- day two of capital controls. we will be back later on in the show. ♪

anna: welcome back to "countdown." two of huber's senior management are being held by police in france. this follows violent protests

over the ridesharing service. uber has concerns that the head of its operations in france and the general manager for western europe are currently in custody. french police and the french interior ministry have further details. china's central bank has taken further action and monetary policy. they lowered the lending rate on the funds. that comes after an interest rate cut as the weekend failed to stop the biggest rout of chinese stocks and's 1996. the battle lines over greases future have hardened and the deadline for a 1.5 billion euro debt payment to the imf looms. alexis tsipras says his country will not be thrown out of the euro because the cost is immense.

10,000 people gathered in central actions -- athens to support his call to reject a new deal. let's get elliott gotkine who is outside the syriza headquarters in athens. we've heard some fighting talk from alexis tsipras and his thousands of supporters over the past 24 hours. reporter: he really did come out fighting in that interview last night and supporters and supporters of syriza rallying in their thousands. singing protest songs into the wee hours. keeping many people up in the hotel surrounding the square and already coming with the same message. that is how they all intend to vote in the referendum. can -- >> there is no yes vote.

[inaudible] it will be our poverty and not an imposed poverty and we will get out maybe in a couple years. >> because i don't like to have a vote in my own country. >> when you don't have money, no restrictions affect you. i don't have money to withdraw from the banks other is no problem for us. the problem is that people think they will want to leave the eurozone. this is not good. greeks are one of the most europeans. reporter: despite the obvious

tension here in greece and at the rally, the atmosphere was more akin to what you would expect to find in a field in a music festival. very convivial. greeks of all shapes and sizes and some ring children as well. there are very serious issue that stake here and many of which are referred to in greek newspapers this morning. this is a headline next to jean-claude juncker saying it does not exclude the possibility of reintroducing the drachma. a has a picture of an exhausted old lady talking about desperation at atm's and at the bottom saying like the chorus from an ancient greek tragedy. talking about anxiety over pensions. that is the big concern and why

the greek government has announced that 1000 tank branches will be opening wednesday to allow pensioners to get out to some of their money. anna: we have had a roller coaster ride on the asian equity markets over the last 24 hours. china and the pboc taking action. on the one hand the want to boost the economy and the want to manage to some extent the use of margin trading to trade stocks. how worried are you about these roller coaster moves we see in shanghai? does this look controllable to you?

guest: we think so. if you look at china the economy is slowing down which is on one side a good thing. china is a big economy and the only way they can continue to grow like that is through heavy investment. but at the same time you need to monitor that without collapse and i think the chinese authorities have been quite effective in doing that. obviously the market sometimes goes from one side to the next. initially they thought the chinese authorities had done a great job. another had started to worry whether the ecb will be as effective as they thought. so some volatility is not unusual. anna: the shanghai composite possibly heading for the biggest gains the since 2009.

what is your overall perspective? we try to do just minute by minute. the latest news. you are urging your clients to step back and take a long-term view. guest: you have to learn not to be drawn by. headlines and invest accordingly there it -- accordingly. the right way is to invest for the long term. volatility can sometimes create opportunities but you should not use that as your basis for investment. invest for the long-term and volatility use that to step up or shave off your investments. if i look around the world we are still positive. the u.s. is growing, the u.k. is growing and europe is growing so we have a pretty healthy outlook. anna: on a personal note, you are from cyprus. do you look at what is happening in greece and see that there are

things to be learned from the example? guest: in cyprus, the solution was quick. cyprus had the same niche negotiations and it got to a point where the europeans gave them an effective deadline and then they posted capital controls but the population was very much in favor of the measures because they wanted to stay within the euro and they realized they had to be some sacrifices to stay within the euro. in greece you have a different government that is a lot more against the measures and in some ways, we have to remember where greece is coming from. the economy is down 25%. i have some sympathy with the greeks being worried where you go from here. there are some differences and similarities. anna: significant differences between the two. thank you very much.

just minutes away from the start of the european equities session, jon ferro is here. he is here early to tell us and give us a preview of what to expect. don't make us do any reading. jon: what a difference 24 hours makes. what a difference a quarter makes as well. the first quarter some stunning moves in equities and the second quarter stunning moves for the dax and the euro the best quarter for some four years. i complete opposite from q1 to q2 and a lot of that has the bond market driving things. anna: today's bond market moves don't look as frightening as it did yesterday. jon: really settled down. 16 basis point moves. german yield down 13 basis points, spanish yield up 24 basis points.

i go back to the annual report when the thinkable -- unthinkable becomes normal and people say that is not so bad. it was pretty bad. anna: "on the move" at the top of the next hour. stay with bloomberg. axel will be joining bloomberg a little bit later on. fascinating to talk to the former head of the bundesbank and talk to him about what the ecb is doing right now and the fact that they froze that emergency liquidity assistance degree. do tune in for that conversation. 7:55 here in london. ♪

jon: good morning and welcome back to "on the move." moments away from the start of european trading, wrapping up the second quarter. imf payday. greece is scheduled to pay the international monetary fund 1.7 billion dollars today and it is widely expected the payment will not be made. tsipras remains the fire saying european leaders would not dare kick the country out of the eurozone. and volatility surges. chinese stocks post the biggest price springs and seven years

after the country stepped up monetary easing for the second time in four days. plenty to discuss as we approach the market open. futures are lower but nothing like yesterday. ftse futures down 42 pints, dax futures down 42 points. let's get to the market open with mark barton. mark: this time yesterday the euro had fallen as much as 1.9%. the biggest decline since january. i have a two day euro-dollar chart. this is yesterday, this is today. yesterday the euro despite being down by 1.9% finished the day higher by 6/10 of 1%. implied one-month volatility yesterday. rose as much as 33%. today it is