rishaad: this is "trending business." a historic day for greece, the referendum result is what we are watching. , six out of 10 voters rejecting austerity. a resounding victory for alexis tsipras. athens denying the referendum was a verdict on the euro.

the euro falling on the news. below $1.09. know what you us think of our top stories. i am on twitter. johnson is at the center of what is happening. let's go to guy. where are we currently? is we have a are surprising strong victory for alexis tsipras. vote.0% of the most people thought it would be too close to call. tsipras on thes front foot. today was a day of celebration. come monday, we are back to hard negotiation. today we celebrate the

victory of democracy. tomorrow, we continue and will complete our national effort on exiting the crisis. our strong ally is the greek believe in its own strength and justification we are in the right. he feels he has the mandate to go to creditors and say, we need to negotiate a better deal. that is also the line we got from the finance minister. he says, we are not going to kick the can down the road anymore. we are going to strike a deal. january, greekof said no. day, the poorest greeks were called to pay with blood, sweat, and tears. as were their children and grandchildren.

guy: what we are going to find creditors the respond. how will the creditors respond? we will find out from angela merkel later on. they are going to be meeting in paris. from that meeting, the ecb is going to determine whether they to thee extra liquidity banks to read while they open tuesday? that is another question unanswered. rishaad: 4:00 in the morning there. when he called the referendum, he was being called hapless and erratic. it could be he is going to be described as an astute politician. he knew his party was fragmenting. he knew he needed the mandate and to strengthen his own

political backbone in athens. what he has done is achieved that and achieved that fantastically from his point of view. over 60% of the vote. they knew they were going to win. kind ofn't know the level of victory they were going to achieve. huge political gamble and it has really paid off. the question is, does it entrench current positions, i.e. this is the position the greeks have? deal they feel will and the yesterday story. does this reinforce the positions of the creditors? we going to get a change of tone or are battlelines being hardened? summary questions we still don't know the answer to. they are all linked. thanks, political story, economics. hinging off each other. so many questions need to be

answered by the greek side and the creditors. rishaad: guy johnson in athens. aussie dollar moving to the downside. equities generally low. here is david. david: it is a day when risk is off the agenda, at least for now. we were seeing a selloff across the region. that being said, it does look -- if you take a look at volumes, for example. turnover is quite thin. lighter compared to average for this time of the day. not a mad rush. stock traces moving down. keep your eye on malaysia today. down 0.4%. ringgit getting slammed. low, lowest level since the asian financial crisis. levels.ck to 1998

less time we saw these levels. are we watching? let's look at the bond market. sign of risk aversion. take a look at the u.s. treasury. 9 basis points. there we go. jtp.ear gt there we go. australia, poorest markets. itentioned to the ringgit, is really a day when you have the dollar stronger and the yen strengthening. fairly clear and straightforward permi. 6.38 for the dollar index.

take a look at the euro. 10970. now we are firmly above 110. ing says we could see this drop further. especially when you get europe and london opening later on. let me slice and dice asia for you. let's go back to equities. down 1%. financials off 1.5%. another market to watch, shanghai composite. , youhese other metrics look at when you follow china. measureskend, a lot of announced. brokers and fund managers coming in. companies doing their part, pulling ipos. the invisible hand.

we will see what happens. the shanghai composite, massive move down friday. down 30%. point, it is about the soaring confidence in the market. back to you. move -- the 30% down move down. looking at the developments of greece. vonne.s you resounding no has reverberated. the last 12 hours or so, the european council president has called for an emergency summit. the ecb will also be meeting to discuss extending a new lifeline to lenders. are as fellow governments preparing to wait for greece to offer proposals that enable the country to state in the

eurozone. angela merkel is heading to paris for talks with francois hollande. suggests little appetite to bend to greece, which could extend the brinksmanship. euro leaders took no time to respond to the referendum. the eurogroup head sending out this statement. saying, quote, the result is regrettable for the future of greece. for the recovery of the greek economy. difficult measures and reforms are inevitable. the dutch finance minister says they will wait for the initiative of the greek authorities. while merkel and france ois hollandefrance whil

said the result is to be respected. commoditiese markets. will slighty last week on speculation the greek crisis was deepening. u.s. secretary of state kerry tempered expectations that a nuclear deal with iran is imminent as they work towards a july 7 deadline. rose on demand. the standoff with greece has not sparked demand for bullion. ame suggest there may be limited upside for gold. in the case of a no vote. that's because the dollar will likely be supported. plenty more on the greek drama. a look at what lies ahead.

do check it out on bloomberg.com. thisg up, the fallout from crisis. which asian economies are most vulnerable. one week lows, following the vote. european leaders get set to head back to the negotiating table. ♪

moving to oneuro week lows. reject austerity. first quarter call for investors is to see what the ecb response is, right?

think that is exactly right. there are a few things the market is going to be looking for. emergency lending assistance. what they have to do to tempt down any contagion. if we do see asset purchases, quantitative easing would be negative. we have to look at the response to the eurogroup. they will not be friendly for any renewed push for greece right away. that does pose negative risk for euro over the next few days. it could see some broader fought out -- fallout across currency markets. rishaad: what is going to be really important also is to stop the emergence of script money. should i say, ious, which can

evolve into a parallel currency. in order for that not to happen, the ecb has got to make sure the greek banks are funded. odd: i think the ecb is in a tough spot. i don't think they want to precipitate the end of this crisis by cutting off heal a -- ela and moving ahead of politicians, but it may be difficult to up the assistance to greek banks. they will keep ela at current levels which keeps rusher on the greek financial system. i think that is a negative for the euros which is a negative -- that of course, as you imply could hasten the move towards

grexit. financial touple touche and's have it up to 75% that they could leave the euro. al couple of financ institutions have it up to 75% that they could leave the euro. todd: it is clear much of europe once that to happen. it is clear the greek public favors savoring -- staying in the eurozone. will see efforts by greek authorities as well as the eurogroup to reach a solution over the next several days. as we have seen over the past several months, it is difficult for greece to find a common ground with its creditors. i think there is a bit less confidence at this stage and tovestors have moved

price in a slightly higher risk of grexit. it is all about the euro, is it not? where does it go, actually? todd: i don't think it is all about the euro. it raises volatility across asset markets. that is going to have a wide would print in terms of currency performance. the yen is going to strengthen and the pound. non-dollar safety even currencies. -- safe haven currencies. the commodity producers will be vulnerable, particularly with the asset concern in china. it is adding up to be a --

aussie dollar, that one is going to be attractive. i would expect them to maintain a dovish tone. we could see more sensitivity to the dovish nest then we have over the past several weeks given the external backdrop. how close in your view is the fed looking at this? is goinghink the fed to be watching. this is not occurring several days before the fed meeting. there is still a good deal of time before the fed meets. careful extract late in the greek developments into the fed a limiting the -- eliminating the possibility for a september take off. it is an excuse to be dovish, but if we see a continued pickup for u.s. data, we could see a september hike in the cards. rishaad: thank you for joining

us. todd elmer. the head of affect strategy in singapore. x strategy in singapore. coming up next, the chances for a grexit. trending business is back. ♪

rishaad: greek finance ministers welcoming the result in greece. >> on the 20th of january, greeks said no to five years of hypocrisy. the deficit could be overcome by nonviable loans. that the poorest greeks were called to pay with the blood, sweat, and tears. we negotiated for five months in order for our position to be heard. not have new cuts that only defend those who support corruption. the end of austerity and restructuring of public debt were are positions, but the creditors would not negotiate. they planned to close our banks with measures of austerity.

offering for the first time in the eurogroup a scientific justification for which there was no rebuttal. this was the reason for the ultimatum of 25th of june. from tomorrow, with this generous no the greek people endowed us with, we will extend a hand of help and cooperation to our partners. we will invite them one by one to establish common ground. issued a report and our debt. we will deal positively with the eu, which must play a part to heal greece's wounds and indeed

europe's wounds. today's no is a big yes to democracy, the eurozone, and the vision of europe as an immense iron cage. being.mon home for will no vote ine greece casts greater doubt on how they can overcome the mountain of debt. making some fairly outlandish predictions. >> we will leave those to them. what some of the major banks are saying, jpmorgan, writing in a now thet a departure most likely scenario. you have others saying, wait a minute. there still may be time for a deal. am saying this will not be a lehman moment.

another saying it comes down to whether the talks exercise diplomacy or whether the gloves, off. so much in the balance. eurasia group saying the bill for keeping greece in the eurozone with no prospect of reform, soaring. the are saying the hawks will prevail. interesting array of views on where greece goes from here. we have barclays saying athens will need to print money likely by july. by july? we are in july. is up: by july 20. -- by july 20. this is turning into a test for angela merkel. : they find themselves in a

difficult spot. they could about the demands that alexis tsipras has leverage. but that would set a precedent. it could show future indebted nations could skip out on their bills. the germans do not want to see a new deal, but if you do not do them a deal, the economy collapses. rishaad: thank you for that. we will be returning to athens after the break. also on the way, not just greece. china as well, causing huge volatility in the market. will it put an end to the equity plunge? we will find out as we head to the open in hong kong and shanghai. ♪

rishaad: a look at our top stories -- greece considers its future in the eurozone, delivering a resounding note to the austerity measures. all the votes have been counted and over 61% say no. tsipras will return in a stronger negotiating position. a financial rescue for greece is still possible. the eurogroup president describes the result as regrettable. there was an emergency summit of

leaders toea discuss the new lifeline for greek lenders. asian stocks on the way down after that referendum result. the stock market is down by more --n 1%, and the ozzy do the aussie dollar gets for the first time in six years. a greek exit from the euro is now the baseline scenario. we are getting the shanghai open on absolute terror up, near 30% since june 12. david: we are up 7.8%. here we go -- 39.75. bank of america merrill lynch called in this month. asian market will be rebounding in the next few days, especially with all of these

measures. all these measures were introduced. you can get a whole list on the weekend. what do they recommend? they recommend selling into the rally. it will be short-lived, is what they are saying. a nationaling called service. moving forward, high chances the market will fall again at some point in the next few months unless they make an open-ended commitment to support the market. 3975 at the open. let me show you how we are doing on the shanghai composite. it is quite rare that you see every single sector group off-limits. industrials are up 9.5%, financials. million,th of $19 stabilizing the market.

natural services. that may get you that list -- yeah. you basically have the big broker. the other bigng, market story, greece. it isfrom shanghai, risk averse. volumes are fairly light. australia is down 1.25%. the nikkei 225 -- money is being taken out of equities and a stronger japanese yen because of all this risk aversion. we are down over 1% for the nikkei 225. update -- let's get you

common currency. the euro, 10970 was the low of the day. if you look across asian affects, all these dollars are at fresh lows. same picture when you look at the kiwi dollar. there is a lot happening, rish, but certainly on a day when risk is off the agenda. greece is rejecting further austerity markets -- the big question is what is next. they are athens -- celebrating today, but what happens later today, and in the days to come? the banks are going to be pivotal in this race -- it will be one of the key questions over the next few days.

john isner focus -- yanis varoufakis said they would reopen tuesday, and that will be quite a difficult task to achieve. atch later on -- we have meeting with angela merkel and francois hollande that will set the tone. the ecb morning has been moved to the afternoon and they are looking for places to cover. will they do with the ela? ecb has a big decision -- does it increase ela? this is emergency liquidity for the greek bank, talking about how they will run out of money midweek unless the ecb steps up. a big part of the story, the banks. yes, there is celebration, but if the banks don't open, it will be interesting to see how greece works its way through this week. erratic, hapless -- that is what it is being called. people are saying -- is he the great gambler? is he really a student? --

astute? mr. tsipras was in a difficult position -- there was pulledl dissent -- he the left field move and went with the referendum. he now has the backing of the greek people. the dissent is disappearing and it does put them in a stronger position. whether itn is entrenches the current positions with greece on one side feeling confident and the creditors on the other side saying you aren't making the commitments that we want you to make. how does that get resolved? it is difficult to see at this stage how that one ends. it is difficult to see angela merkel giving massive concessions to the greek people because they have turned around and said they don't want austerity. rishaad: thank you so much.

a late night he is having their. -- there. something like 4:35 in the morning. here is the vomit the latest from social media. -- yvonne with the latest from social media. yvonne: some say it may take months before we know, but greek leaders are being very outspoken in the last couple hours. in response to this referendum, particularly the prime minister alexis tsipras, laying it out on twitter and saying that at this stage, the country needs unity, cohesion, togetherness, and honest understanding in order to overcome difficulties moving forward. he says this mandate does not call for a grexit, but rather gives me greater negotiating strength. this is according to jan bell --

yanis varoufakis. liquidity will return and the euro won't be less. all eyes are watching the proposal that these greek leaders are going to put forward after this referendum. higher towardng the trading days, authorities doing all manner of things to try and plug this. the sharpest fall in stocks and more than two decades -- what can they do to restore confidence? previous attempts have only made things worse -- tell us what they have done? ve: there was the unwinding of the margin trait we saw for 10 straight days, and that is why we saw trillions of dollars worth of market value evaporate

in a matter of three weeks. shanghai was down -- rishaad: even now we are up as well. saying tone trader is expect a knee-jerk response today, up to the latest stimulus measures. the rest of the day, who knows whether those fundamentals of unwinding are going to continue or whether this truly has put a backstop in the floor. let me tell you what the latest measures are. they have again imposed a moratorium on new ideals, and 28 ipos have been suspended. they did this about eight or nine times. atroup of 21 brokerages, least $19.3 billion in in the stock market stabilization fund, executives from 25 mutual funds, and hold them for at least one year.

that is a unit of the sovereign wealth fund. the finance ministry also authorized the national pension fund last week to buy shares, and the central bank will offer state margin lenders liquidity support. they are looking at foreigners and blaming them. managersforeign wealth own fewer than 3% of chinese shares, and they have been adding them during the downtime. short positions late last week -- thursday total just $314 million. 0.03%. nevertheless, media was blaming morgan stanley. i am on the blacklist sometimes.

finance professors came out with this scathing statement on thursday, saying that overseas were robbing small chinese investors and ignoring the risk. before i go, we have china daily this morning out, toning down the rhetoric and saying "too wild fluctuations, unwarranted and unwanted." it says "the current intervention may only serve to help the nation steer clear of a self-inflicted financial crisis." elsewhere,ving england nearly got into the final. stephen: first women's world cup championship since 1999. they beat japan this time. rishaad: 5-2 in vancouver. stephen: england beat germany

for third place. rishaad: penalty in the extra time. n result that was never i minutes.opening 16 carly lloyd scored a hard trick -- a hat trick after a loss to japan for years ago. congratulations, team usa. guestto come, our next talks about greece's decision -- find out why. ♪

rishaad: we're looking at stories making headlines around the world. john kerry has tempered

expectations of the intimate nuclear deal of their run -- of the run. negotiators say progress is being made and they want to announce it by tuesday when it is due to expire. tehran back into global energy markets and lift sanctions. days, wehe past few have, in fact, made genuine progress. but i want to be absolutely clear with everybody -- we are not yet where we need to be. rishaad: japan has called for the swift agreement on the code of conduct over competing territorial claims. intel get they endorse freedom of navigation and flight in the south china see. -- sea.

an unmanned russian cargo ship is successfully docked on the international space -- and -- international space station. the ship was carrying water, oxygen, and food. the previous launch in april was unsuccessful. u.s. supply mission failed when a rocket exploded after blast off. let's have a look at the key data driving market this week. joining us is the chief asia expert economist. great to see you. -- what news is apart from greece today. how does this work out and play out in him as part of the world? this knee-jerk

negative reaction, but i feel that turning into sustained systemic nature is a very limited risk. a number of reasons for this -- 2010-2011,pared to the euro area outside greece is a lot stronger. then, italy, spain were at risk of losing market access but they are a lot stronger now. debt ist of the greek an official hands and of the private sector. three, there is a lot of ecb financial backstop measures now in place to limit it to the periphery and from spreading further. , oil prices are a big oil differentiator in the low oil price has improved payment strength vis-a-vis other emerging market regions like latin america and around europe. perspective, asia

stacks up pretty well. itrall, rish, i don't see being a significant contagion. thee are some risks in near, and i would say we would be particularly sensitive around indonesia and malaysia, where they could, particularly on a currency side, see more of a selloff in the coming few days. rishaad: especially if you get bond yields on the way down -- what is your view? rob: that is the risk. i would say that the one that really has changed a lot since is india. i think india's balance of payment is substantially stronger now, and the growth is starting to pick up. i think it is no longer one of those fragile files.

ok, let's move along and talk about the other big story -- trying to pump liquidity into the system, trying to shore up the stock market. went for china next -- what for china next? rob: i think it will be a recovery, a short-lived economic recovery. selloff, it has just accelerated and brought forward a lot of the easing measures. had interestwe rate and a triple r cut. we have a lot of measures trying to support the stock market that have been announced on bloomberg. these measures, all these easing measures, we are starting to see data in china from the

pmi business surveys to industrial profits. i reckon in the coming months, the market is going to shift from thinking growth is bottoming in stabilizing to signs of recovery, and that will help the rest of asia. rishaad: you sent recoveries in the short-term and we are looking at -- what do -- 6.6% gdp growth? rish, but oneght, thing we have to be careful with is the big effects. gdp quarter onq3 quarter, we reckon it will be close to around 2%. annualized that, it is around 8%. if you were looking closely at the polls of china's economy, it should be picking up. the numbers will be pretty misleading in the next couple quarters. australia? --in quick word on australia?

rob: there is a meeting on tuesday. the risk is that the rba could move to more of a biasing signal, they could cut rates in the future. we expect a rate cut in november. basically, the economy is still quite weak. we have seen commodity prices starting to come off again. i think the other thing to watch on tuesday would be the rba signaling potentially even more strongly that the australian dollar is still overvalued. rishaad: rob, great talking to you. up next, the no vote in greece surprising many, but not the prime minister's former college professor. whenis thoughts "trending business" returns. ♪

rishaad: the polls suggested a tight race in the greek referendum, but a strong no vote farmer a surprise for a policy professor -- we followed him on voting day. no meansg people that we are getting out of the euro, which is completely wrong. they are supporting them all the time, terrorizing the people. have known tsipras for about 18 years. mine ateen a student of the department. he was already a special student, very intelligent, smart student. the people that are to blame are the people from the european

union and the imf. as ae been here all day, representative of the no campaign. i think the vote will get at least 54%, 55%. i just want to tell you -- we have counted about 4% of the votes and it is 69% no and 31% yes. rishaad: he has been going crazy

yvonne hasedia -- been having a look at it. yvonne: #referendum. we are hearing a lot of people outside these discussions, from greek americans and people of the finance world. we saw arianna huffington of the huffington post -- choose vocal about this. she said it was time for europe -- to embrace greece and realize that it cannot cut its way to growth and prosperity. ian bremmer is saying that democracy in europe is turning into every nation for itself. vanic is saying there will be a de -- there won't be a deal that solves anything. we will continue monitoring it

all morning. in the next hour, find out what the smart money says about greece's future and why one of the world biggest banks says it is certain. ♪

of july,its the sixth i'm rishaad salamat, and this is "trending business." we will be live in athens in singapore -- this is a look at what we are watching. alexis tsipras 160% of the vote to reject an austerity measure. the prime minister says he will return to talks with the mandate to strike a deal. happens is denying that the referendum was a verdict on the euro. yanis varoufakis says they will not have parallel currencies.

shanghai is heading for its biggest rally in seven years after china act simply restores -- let us know you think about our top stories. follow me on twitter. hows get straight to markets are behaving and how the grease result is playing out. here is david. david: two things -- china is doing its own thing. i will get to that in a moment. everywhere else in asia is falling -- there is not a lot of volume coming through, so it is not a mad rush to the exit. but there is a potential drop across a lot of these markets. take a look at australia. iron prices getting whacked, a

bad week for iron ore. the nikkei 225 is down 1.5%. risk is pulling money into the japanese yen. is a quick look at the top and bottom three. gamese now erased early and the hang seng index. hong kong dropped 5%, and we are down. happening you what's at the commodities space. down. seeing a move below 60, 5981. u.s. crude. down 3.2%. .

we could be erasing those gains over the next 20, 30 minutes or so. and historic day for greece -- one man has been following everything that has been going on, guy johnson. the is an athens. -- he is an athens. what do we have and where are we right now, guy? guy: where are we right now? i think in that middle ground between alexis tsipras glowing that huge. we thought it would be too close to call but it was actually a huge vote for the no side. now we have to figure out how

the creditors are going to respond. it will be interesting to see over the next few hours -- we will hear from angela merkel and francois hollande -- how will they respond to what has happened here? mr. tsipras was on greek television earlier and said they still have to find a deal. >> today we celebrate the victory of democracy, up from tomorrow, we continue and we will complete our national effort on exiting the crisis. our strong ally is the greek people's belief in a strength and that we are in the right. guy: so how will greece exit the crisis is now the question. will greece exit the crisis? yanis varoufakis, who likes to isy up late at night, talking about how that this vote is a signal that we need to find a mutually workable agreement between both greece and its creditors.

but that workable agreement looks like it's hard to tell at this stage. i can say they are going to see a hard-line. mr. varoufakis is sticking to his line that we are not going to kick the can down the road for the last few years. on the 25th january, greece said no to five years of hypocrisy, to the lies that the greek deficit could be overcome e. they were called to pay with blood, sweat, and tears -- after their children and grandchildren. great finance minister last week told us here at bloomberg that he would rather chop his arm off then sign a deal that doesn't have debt renegotiation. so we will wait and see what happens next -- there are number of questions that need to be answered. howell angela merkel respond to the vote and how will the ecb respond? we're still waiting to find out.

guy, is the party over? about july 20, the big, key date? guy: there are a number of key dates. the party has just about wrapped an hour awayabout from dawn here in athens and it has been a long and fascinating night. party.really a big thousands of people gathered outside parliament to celebrate the vote there are a number. -- celebrate the no vote. there are number of dates we need to watch out for, and we of interest iny watching what happens with the bank and how the creditors respond. tuesday night, we are going to mit in leaders' sum

brussels -- how will they respond? we will get angela merkel and francois hollande, and tomorrow we have the full summit taking place in brussels. plenty still to come this week after this greek story, but we have just about wrapped it up. dawn is only a few hours away now. rishaad: thanks. guy johnson from the heart of the greek capital. throughoutin greece the day -- here is a vonn with a look at what we are watching. resounding no has reverberated quickly across europe's political leaders. we have learned that european council president donald tusk has called for an emergency summit. that is on tuesday. ecb may be extending a new lifeline to greek lenders, preparing to wait for greece to

offer proposals that enable the country to stay in the eurozone. angela merkel heads to paris on monday to talk with frost hollande to map out -- with francois hollande to map out a way forward. extend whatentially began when alexis tsipras came into power on an anti-austerity plan. euros leaders took no time to respond to the referendum. they sent out this statement. 'the result is regrettable for the future of greece. the recovery of the greek economy makes it inevitable. " they say they will wait for the initiatives of the greek authority and chancellor merkel and president hollande both agree that the result was "to be respected." outcome say that the cars consequences not only for greece but also for the people in neighboring countries and the

whole european project. look at crude dropping below $60 a barrel for the first time since april. oil was already sliding last week on speculation that this greek crisis was deepening. tempered expectations that a nuclear deal with iran was eminent as they work toward the deadline in vienna. the two factors there, gold and silver, rose on demand to stand hasn't sparked much demand. some strategists expect that there may be limited upside for gold in the case of a no vote because the dollar will likely be supported. back to you. rishaad: the other big market story today -- china is pulling out all the stops. start,ve spike at the

then we had the usual roller coaster. 3.5%. we are up at -- this is a 6% jump to 3815. where do we go, short-term? you have the brokerages stepping in, the mutual funds coming in and saying they will buy. they will hold for at least a have this moving out of this unwinding process. will see how this goes. they are saying that this move is meant to steer the market away from systemic failure -- it is not meant to spur the market

back into action. they say the shanghai composite is close to 50 times earnings. if you touch anything outside this you are burning your money. bank of america merrill lynch also came out and said that -- they areebound expecting it to drop further. 3817 is the level now. daybright spot -- the seven interbank lending is down 9% on this money market rate. they are spiking back up little bit, and that leads to the biggest drop in six months. ipo is pulling the plug. ipos.panies halting

an encouraging sign that the age of liquidity is coming down. the imposition of these new measures they were talking cost of stock plunge -- steve joins us with more on what the government is doing to restore confidence. authorities came out with a slew of market boosting measures to bounce back after the slide over the past few weeks that wiped $2.8 trillion of market value. that is what we are seeing now, and already there are shares in hong kong going into negative territory after opening 2% higher. came outhai composite screaming, 7.8% in the early day. but we are starting to pair some of those games up. over the weekend, what we saw was china suspending initial public offerings. another moratorium on ipos, and

brokerages and mutual funds both pledged to buy a share that the central bank also came out and said it would provide liquidity. the new steps came after other measures last week failed to restore much confidence in the market among china's 90 million individual investors. interest rates were cut, lower innsactions on the market, the pledged crackdown on shortselling, not to mention pleased by the regulator for individual investors to act rationally. these two measures have put a floor, at least for now, to the stampede sell. 28 companies have halted ideas and a group of 21 brokerages will invest at least $19.3 billion in i guess what you would call a stock market stabilization fund. for now, they put a bit of a floor on the selling but we will have to see -- we have seen

volatility on the market over the last two sessions. rishaad: thanks a lot. coming up, malaysia's prime minister is claiming political sabotage as investigators follow a $700 million money trail. the spotlight again on greece, when "trendingke business" returns. ♪

rishaad: back to our top stories -- as a result of the greek referendum, creditors may have lost this round but the match is not over. the chief economist for asia-pacific is with us. people said that it was going to be yes -- and in a way, many people in the investment community set themselves up or a yes vote and hadn't considered a

no. >> i can't agree more. get 16 eurozone of your bank account in the da , -- i think the reason is, they would cause higher but ielief and less pain, think the campaign was very effective. this is the problem with your. rishaad: that was the message coming out of francois hollande and angela merkel and various german officials, that this was effectively a vote to stay in or out -- something the greek student by. -- ia: because that is not think that is the key problem. .urope can set rules

and it is the national policies that decide what to say in the referendum, and europe can change that at this point. rishaad: they have been described as erratic before announcing the referendum, perhaps even hapless and unable to do his job. do you think he will now be seen as a stooge? he has become a great gambler. alicia: that is the right word -- he is a great gambler. he had so much to lose, and he would have lost. rishaad: but he didn't have everything to gain. alicia: but you have one more card, in the card is if they finally go with me, the creditors will have to buy this or push us out. remember, it will be very hard for the creditors to pull greece out of the eurozone. at his heart, he played it in a way -- in a very risky way, but

with the right result. angela merkel and francois hollande will be licking their wounds, one that? alicia: absolutely, they will have to come up with $50 billion, and they have two options. a very slow and painful greek exit is one of them, but the consequences -- rishaad: wouldn't that send the wrong message to all the other countries? germany, and a most indexes tension was way, once the eurozone to remain impact the -- to remain intact. one affect the countries immediately -- i don't think we will have a huge impact, but it will have an everlasting impact. i think it will be a risk premium for everybody who was not germany. rishaad: what about in these other countries like portugal? maybe spain.

they are very much anti-austerity, too. do you think they will look at this, because elections are coming, as a means of a platform? alicia: the spanish government is really at a crossroads with this result. think about it. on the one hand, they would love greece to go through austerity but they wouldn't want greece to exit. structure i was talking about, forever. to support, and i think the -- there will be various attempts for citrus to forthe match -- percen tsipras to win the match.

the $50 billion, which they will have to pay about 10% of any bailout in europe -- it is more about the immediate impact. tsipras when alexis said he needed this because he needed to strengthen his bargaining position, has it? alicia: yes, surely. this is the end result -- the match is not over. the end result is that tsipras has a much stronger running position. leading a country pray for something is not the right strategy. rishaad: you can't shrink your economy to grow, can you? even though we had times when greece was picking up, they have had a lot of loss.

alicia: i think greece has done relatively well, even looking at revenues. ask such a prime i think there is no way for them to have imposed with they wanted to impose. that is where -- they lost that. this is the second one. rishaad: some said best out of three or best out of five. next, find out what the smart money says about greece's future and why one of the world's biggest banks believes the euro exit is all but certain now. ♪

referendum isek raising even more questions about whether the country can overcome -- can maintain its mountain of debt. look at the debt and the economy. yes, it is interesting to see what the major banks of the world and local economists are

saying. it is a diverse opinion whether greece. in the euro zone or whether it will exit. if you believe jpmorgan, their economist is writing in a note to clients that a greek departure from the euro is now the most likely scenario, but not everyone is. -- not everyone is convinced. some say it comes down to the negotiating tactics at monday's meeting, if there are any negotiations. one other group says that keeping greece in the euro with no prospect of reform is disproportionately higher, and they maintain that the hawks in the eurogroup will prevail, with the argument that greece should be given aide to get out. rishaad: this is being seen as a decisive victory, isn't it? angelawill be a test of merkel and francois hollande.

what trade-offs do they face? zeb: right now, they must be in conversations to figure out how to respond to all this -- the official response from angela merkel so far is that this is a decisive victory for mr. tsipras, a decisive test of leadership for the european leaders. the germans believe the new deal would be bad economic policy. do you have in the new deal, bow to their demand, or allow the economy to collapse? rishaad: thanks, zeb. measures tos new stop the slump in stocks. we talk about the latest moves after this break. ♪ . .

rishaad: a look at our top stories. greece has fallen his future in the eurozone and the eu into doubt, sending a resounding no to austerity measures demanded by creditors. 61.3%. alexis tsipras will return to the negotiating table in a position. it must be decided whether financial rescue for greece is still possible. the european finance minister

called the referendum results "very regrettable." hascellor angela merkel called an emergency meeting. about 7%opened up higher after beijing expended ipo's from which it could buy shares. wipede-week decline has some 3 trillion dollars out of the value of equity markets there. initial euphoria has subsided, david? david: it certainly has. they really should have closed the market and rang the closing bell after about 30 seconds. 7.8%. about every single sector in or 10%. up nine we only have a couple of these stocks and we will get to the

movers and just a moment. a lot of these stocks have been bid down in shanghai. let's see what happens. no one really knows what will happen to this market. let me break this down for you. cross sector -- you want to watch out obviously for these brokers, and it's an interesting fact that because the market has they have towell, raise a lot of money in the markets. i think they raised something like 13, $14 billion through additional share offerings here in hong kong. a lot of that is now going to go to stabilization, but we will get more on that in a moment. insurance stocks. 6.7%. how markets are

looking overall across the agency. across theoss region. there we go, down 1.4% for the theon best mark, led by heavyweights. hong kong gave up early gains. things are looking a bit dim compared to 30 minutes back. is rushing everyone for the exits at this point. we will see what happens. of course, the interesting thing, the dax open 4% lower today. back to you. rishaad: one of the big questions is what comes next? live in athens where the time is just about 5:32 in the morning. the greeks are ready today, but what will the hangover be like tomorrow and the day after? reporter: no doubt.

it will be a new day, a new dawn for greece. what will alexis tsipras do with this mandate he has been given by the greek people? 60% said we do not want any more hysteria. they still want to remain in the euro. how do we square that country -- that story? later, angelaut merkel, francois hollande, the tone as they come out of that meeting, that will set the benchmark as well, how the ecb reacts. remember, 60 euros a day is what the greek people have been out of thetake banks. but they have been promised that the banks will open on tuesday. will they open tuesday, rish? is, how ise thing alexis tsipras reading viewed

now in your opinion? he took a big gamble, didn't see -- didn't he? : it was a huge gamble. he needed his party, syriza, behind him. he came out with the number he was looking for, a big win. we will have to see if that translates into him being able to convince european creditors they should cut him some more slack. you can look at this number of ways. one is this will harden the battle lines. the europeans will look, go, you know what, that's fine. you don't want to take more austerity, you do not want to deal with the pain associated with the program, that's fine. we will not offer you one. there is a lot that still could happen here. he has his party behind him. can he convince the creditors. we will find out that story over the next couple of days as we work our way towards this tuesday night summit in

brussels. what he said out to do was to negotiate, strengthen his hand in the negotiations, and i think most people are suggesting he has differently been able to do that. : i think he probably has been able to do that. we just do not know how the other side will deal with it, rish. suppress and has certainly rubbed some of the other european leaders the wrong way as has certainly rubbed some of the other european leaders the wrong way. he probably feels invincible at the moment. is he going to strike the right chord with european creditors, or is he going to turn up in wantels saying, we do not

any more austerity. we are not going to take any more pain. nice one, guy. guy johnson joining us from athens, where he has been all night ever since we got that stories coming through. but to the other main story, chinese shares, the steepest plunge in more than two decades though. i guess you have to ask about the government being able to restore confidence. meanwhile there is another story other than greece. stock markets, of course, we have the statement from the hong kong stock as well,urging calm and that they are able to come up with liquidity given greece and the measures that came out of china. of course, authorities on the mainland, trying to put up a backstop to this, even if that

means the reversing of some reforms. so, there is what the stock markets are doing. hares havees -- h-sd already turned negative, rish. shanghai composite was up as highs 7%. worsen: as we semi-joking last week, about -- as we were semi-joking last week, about -- it might be a negative. here is the new move. we will move through these quickly. they have suspended ipl's again. in fact a memorial -- a moratorium. there's also the stabilization fund. invest in thewill aan to give the market backstop.

and they will hold shares for at least one year, that is an investment into the sovereign wealth fund in china. they bought etf's on the market, and knows that yesterday. the ministry and announced that they will be able to buy shares. they will offer a state margin later liquidity support. so the transaction fee cuts taken -- kick in -- guest: august 1. rishaad: you wonder what that will lead to. ofst: it leads to a lot people questioning whether the government should be doing all this, but in the china daily editorial this morning, they are saying it is necessary, they are calling it interference. it should not constitute a reversion in market oriented reforms, and they are talking about it could lead to a

self-inflicted financial crisis. that is why they are doing it. they are saying, ok, it's not actually mainland chinese -- it's not their fault. it is short sellers. guest: everyone knows. rishaad: you went through some stats that were quite telling earlier. this was retreated by other state media organs that foreigners are largely to blame, speculators. asy named morgan stanley having a hidden agenda, along with others, the short sellers trying to talk down the market. we had financial professors in beijing. did not cite any evidence, but basically blaming short sellers from overseas. here are the stats. on thursday -- this is the bloomberg terminal -- short totaled $314 million.

not billion, not trillion. foreign money managers also own about 3% or thereabouts of h s hares. they cause that kind of -- what, three $.2 trillion of market value wiped out, collapsed? i am just putting the numbers out there. rishaad: just saying. guest: just saying. rishaad: thank you very much, steve. steve angle there. ofeport suggested hundreds millions of dollars of public money ended up in a foreign make it count. let's go to our southeast asia correspondent. tell us more here. reporter: it was a shocking dramatic twist, social media a blaze with a blaze with reaction. the prime minister seeking

deeper into allegations he is directly involved in it all the wall street journal report suggesting a money trail was making its way to his own accounts. the attorney general confirming he has seen the documents related to the alleged transfer of funds. he has rated the offices of three companies. the prime minister, forced to respond here, calling it political sabotage, a smear campaign. he is getting legal advice on how to respond to those allegations. be i mdb, ituld could be down to a level not seen since the peg was removed a decade ago, rish. rishaad: is there any word on

when that report will be handed over to parliament? reporter: apparently the end some -- the interim report is done. they are required to submit to parliament on thursday, but take note, it will not be made public. not surprisingly, the report has dented investor confidence. he has resisted calls for him to step down. rish. rishaad: thank you very much indeed for that. the no vote in greece surprised many, but we will hear the prime minister's former college professor. ♪

rishaad: let's look at other headlines. secretary of state john kerry has tempered expectations of a pending nuclear deal with iran. they say that progress has been made and they want an announcement by tuesday or is that is when the interim accord is due to expire. it would allowed tehran back markets as energy sanctions are lifted. secretary kerry: over the past few days, we have in fact made genuine progress, but i want to be absolutely clear with everybody. we are not yet where we need to be. mequon: japan and five countries came to a swift agreement over competing territorial claims. beijing has been building on

reefs on disputed territory. an unmanned vehicle has successfully. at the international space station. the progress ship carrying fuel, oxygen, water, and fuel lasted off friday from kazakhstan. waslaunch in april unsuccessful and last week a spacex rocket exploded shortly after liftoff. the women's world cup, the game in vancouver and the conclusion was never in doubt as the u.s. women scored four times, if you can believe it, in the first 16 minutes. it was sweet revenge for the to japan for lost

years ago. bloomberg followed former prime minister alexis -- followed the prime minister alexis tsipras's college professor on voting day. we are getting out of the euro, the euro zone, which is --pletely wrong, because they are all the time terrorizing the people. tsipras for alexis about 18 years. mine ateen a student of the civil engineering department. he was already a special student, very intelligent, smart student. blame are who are to these people from the european community, imf. i have been here all day as a

representative of the no campaign. get at the no vote will least 54%, 55%. we will see. you, andnt to tell greece, we have -- 69%.about 40% [indiscernible] rishaad: the outspoken and sometimes controversial greek finance minister says that this underscores the general election back in january.

varoufakis says they have not come close enough. grace said no to the lies that deficit could be overcome -- greece it said no to the lies that the deficit could be overcome with the blood, sweat, and tears of their children and grandchildren. we negotiated for four months in order that our logical position new cuts and not have that only support those who support instruction. the end of austerity and the restructuring of public debt were the two negotiating position of our government and our creditors would not negotiate on this point. on the outset, they planned to close our banks to humble us, and at the point of punishing us, offering for the first time in the eurogroup a scientific justification for which there is no rebuttal. reason for the

ultimatum of the 25th of june, which the greek people have returned to sender. have endowed on us the power. we will extend the hand of cooperation to our partners. we shall invite them one by one to establish common ground. we shall consider positively that the imf, to its credit, had issued a report on the non-sustainability of our debt and it required restructuring. we will deal positively with the -- which lastn week took a position of waiting. we will deal positively with the eu, which must play a part to heal greece's wounds and indeed europe's ones. europe's beating heart commences to heal our ones. today's know is a big yes to a vision of europe

as our common home for well-being. on greece coming up. we will look at what the major players are saying on the social media when trending business returns. ♪

rishaad: back to trending business as we wrap up what people are saying about that greek referendum. rishaad. hi, there, the greek or for and him definitely one of the trending topics since that vote, that resounding no vote and alexis tsipras being very vocal on

social media. taking to twitter to say today ofcelebrate the victory democracy. tomorrow we will continue our national effort to reach an agreement or read what that is the big question now. here is manfred weber, a german politician and a member of the european parliament. europe, meet principles. otherwise quiet operation cannot work. parking debate. some say that greece's economy will spiral downward deal or no deal, because of what actions of been done to its banks. they reopen? that's still a big question. finally, someone saying, unless creditors are prepared to give greece a full -- a fair chance of next two days, emu damage is irreparable. back to you. rishaad: market check -- hong

kong, shanghai dashing i started the session up around 7.8%. but i see that the market turned lower as we were speaking. down 2%ve the hang seng lower. but shanghai getting a lift, the rocky at the start. liquidity being pumped into the system. a moratorium on initial public offerings for the time being. japan, south korea, the tokyo market also feeling it. we have a 1.6% downside for the nikkei. 324 points down. of strength from the yen being seen as a haven. and we see that rise against the dollar. including the aussie dollar as well. i think we can have a look at i'm parliament building,

sure you will see it in a second. this is the scene in athens. the time is coming up on 6:00 a.m. there on the day that the to vote no on further austerity. ♪ we live in a pick and choose world.

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new day is dawning in greece and with it further uncertainty about where the drama goes from now. we live from the bloomberg hong kong headquarters and this is asia edge. ♪ the top stories this hour -- just say no. suppress has a spring in news step as greece demands -- rejects demand for more

austerity. where do they go now? there is an emergency meeting of eu leaders to coordinate their response. i am watching what is happening with your money. it has been a fairly eventful start for the week. we mentioned that no vote opens up a tad more uncertainty. last i checked, i think we were down 24 points. map -- at this heat 3.4%, the sharpest one-day drop in at least six months. the euro has managed to claw back some of those earlier losses. it is a stronger dollar and it even stronger japanese