a no vote gives more negotiating power by european creditors say they are still in no mood to compromise. matt: market reaction has been fairly immune. investors on both sides of the atlantic seem optimistic that even after a great exit that even a greek exit can be contained. >> consolidation arrives for health insurers. aetna is buying humana for $35 billion. megacould be a trait health care deals. good morning, i am olivia sterns. matt: we have some breaking economic news. we will head out to julie hyman at the breaking news that's. julie: we did see growth and

services industries thing up in june -- industries picking up in june. coming in at 56. a higherlightly lower than the 55.7 reading we had in may . when we talk about these management numbers, anything above the signals expansion. would have been expanding in the services industry for quite some time. it is a question of the pace of the expansion. we are talking about retailers, real estate firms. we have seen a rebound an in consumer spending. services make up the biggest part of the u.s. economy by far. the fact we are seeing an expansion picking up is definitely a good sign, even if than before. worse we are in the regular session nnd seeing stocks without a

enormous reaction. matt: but i feel like we are starting to see markets inc. a little bit freaked out about what is going on in greece. down 2% in europe. down 100 points in dow. olivia: dow futures were down 150 point people. -- 150 points. people are freaking out less. matt: definitely a little queasy. olivia: need some antacids. now let's get to what is making news on the bloomberg terminal this morning. erik schatzker in athens with the very latest. i want to start with the latest news we are hearing about who may be the new finance minister. what have you heard? erik: let's just be clear, the motorcycle riding t-shirt clad

yanis varoufakis is out. we have been awaiting news from the prime minister all day as to who his room has been would be. phil looks like it will be given its excellent uss. there was a time when the eurozone finance ministers lost in april. if we can confirm he is the finance minister, he would have beaten out to other men who were considered to be in the running to become finance minister. he was the leading candidate given the closeness with which he was negotiating alongside mr. benefactors in the last five months.

unfruitful andre that is why we are where we are today. olivia: we will get back to you later on in this hour and throughout the day on bloomberg market day. so much more to get to but my burning question is about the bank. what are you hearing so far? the official word is that service is still saying the banks will be open tomorrow. what are you hearing? erik: it does come down to the ela, emergency liquidity assistance from the central bank. the word effectively is with mario draghi. --he extended or increase does he extended or increase the amount available? if he doesn't, this country will have no choice than to extend the bank holiday but the question is for how much longer? through the end of the week, next monday, or possibly through july 20? that is with the fear on the streets is in athens.

opinions and greeks were either face thewill they possibility of a bank holiday, but they will no longer be able to withdraw 60 euros a day. maybe the maximum will be reduced to 40 or 30 or even 20 euros a day. it is all a possibility because the government is trying to prevent the banking is the collapsing upon itself. back to you. olivia: that decision on the ela is something we will be looking out most carefully throughout the day. moving on to other stories, there are still no signs of an imminent nuclear deal with iran. the original deadline was already extended by a week. john kerry says the two sides are shooting for a deal by the end of tomorrow. today, he is tempering expectations. >> over the past few days we have in fact made genuine progress. i want to be absolutely clear with everybody. we are not yet where we need to

be. the u.s. says it will only sign a deal that restricts iran's ability to make nuclear weapons. iran wants a quick loosening of economic sanctions. matt: president obama has scheduled to make a rare visit to the pentagon today. he will ask for update on the fight against islamic state militants in the middle east. the coalition led by the u.s. flew 38 bombing raids over the weekend against is targets. carolina, the legislature is excited to begin debate on whether to remove the confederate flag from the capitol grounds. the issue arose after last month massacre of nine people at a historic black church in charleston. the new ceo at rolls-royce is moving quickly on a second day on the job. he cut the outlook for the engine company and halted a share buyback. demand has been sluggish for

shift and just and jet engines used on certain models. just be clear for everyone who is not familiar, this company only makes those engines. it does not make the cars. the backside of the business was sold to bmw. olivia: two separate companies. greece. to let's bring in one of our favorite guest. is the publisher of the report and joins us from thailand. great to have you with us. get your take on what is happening in athens over the last 24 hours. we had one guest is grabbing this as a three ring circus with no service leader of a what is your take -- leader. what is your take? marc: grace has basically rejected the austerity

proposal by the eu. what we will see is essentially the ecb will either have to attempt to continue to pump money into the great banking system or they will have to stop . everybody knows in the world that greece cannot pay its debt at the current size, so what will happen in my view is either greece will leave the eu and suffer very badly for a few .onths, maybe even longer there will be a cash shortage. for the eu and the ecb and the imf will have to cut a significant cut. and has been proposed something like 30%. i do not think that is enough. i think they will need a cut of at least 50%.

matt: there was arguing for debt forgiveness saying germany received a lot of debt forgiveness after the second world war and he thinks they should extend the same kind of offer to greece. what do you think of that argument? marc: i agree they should have a debt forgiveness, but if you forgive debts and then continue to pump money into greece and they don't compromise themselves because the government is bloated in greece, then the problem will resurface in the future. i would like to focus on something. countryay be the first to actually oppose the measures imposed on them by the ecb, eu, and the imf. more countries may follow.

for the markets indications are ,hat we are seeing today portugal, italy, spain, their bones are weakening. the strong credits are strengthening. in particular, u.s. treasury's ies. i don't believe stocks have been week because of greece. i think the global economy is slowing down or particularly the economy that is related to china . downthat were significantly before today. ofvia: on this issue , the spanish austerity hardy had put up a picture with tsipras.suppres mr.

how likely do you think we will see contagion spread further? marc: the likelihood of contagion is very high. i have to say when you have a borrower, you also have a lender. eu kept onng how the partly money into greece also to bill out their own banks. suddenly now the debt is no longer manageable. i would say wake up people of the world and investors, greece will come to your neighborhood very soon. maybe not this year, but next year or whatever it is. the world is over infected. default will follow or they will have to create very high

inflation rates. matt: what you think will happen if greece is thrown out of the euro? that would mean total debt forgiveness because they would default that were the case. people argue markets it will start trending against -- marc: for greece, probably to optione eu is the best because if they default on everything, they will be basically debt-free. the pain near term will be very substantial because they won't have any cash or sufficient cash money. the economy will plunge. the economy has already plunged as a result. olivia: we do have to ask you about this a lot in china.

still about 30% off since chinese equities peaked earlier in june. what are you seeing about the market?in the chinese how much further into bear territory could the chinese market move? marc: my view was that after the 100% increase in chinese talks , the senseeculation of the economy was twice as large as in the u.s. so it was very large. my view is that the market with full by at least 40%. i still maintain that the market will move lower before it starts to move up again. i don't think we will see a new high in china for some time.

matt: you mentioned the underlying economies slowing down. how bad do you think that is? marc: i think the economy is very weak by chinese growth standards. we have seen that also in industrial commodity prices. i think lots of sectors in china are no longer growing. that has lotsntry of different provinces at large is a u.s. state -- as large as a u.s. state. some are going and others are contracting, overall at the atsent, the chinese economy

the present time, the maximum the chinese economy is growing is 4%. that is the maximum. olivia: a final quick question. with everything happening in greece right now is perhaps happening in the chinese market. is this force janet yellen to delay a rate hike? majorityyou know, the of governors that are voting are excuse to will use an attempt a delay for the rate increase. the ecb will use the greek situation to print more money. i don't think it will help the economy, but that is what i think they will do. olivia: thank you so much for joining us. and look at the

global market reaction to the latest development out of greece and what a greek exit will mean for the euro currency. ♪

olivia: good morning and welcome back to bloomberg market day. matt: let's go straight to julie hyman with a look at the markets . julie: we have been having a little debate about whether it is a sharp reaction in the u.s. to what is going on in greece. i contend no. -- matt begseliver

to deliver. it was a five-month low for the dow earlier. major averages not falling as much right now. the biggest drop his oil which we will get to in 30 minutes. i want to talk about weight watchers now because the company potentially is a subject of an to the newcording, york post which says an unnamed activist hedge fund has potentially but most of weight watchers' $140 million in senior loan in making an overture to the company's based inowner luxembourg. shares rising by 17%. year-to-date, you can see the troubles weight watchers has been facing. in particular, it had a big drop earlier this year after it reported in other revenue decline. other -- fit bits

and other instructors have been taking away the appeal weight watchers has. we are talking about shortage of 43% as a percentage of flow which is a very high number. it used to be over 60% which is incredible. that is not something you see very often. that are still a lot of people bidding weight watchers -- betting weight watchers will decline. matt: there is a good question though. julie: potentially. matt: because they will cover. julie: you can see covering as part of the gain today. matt: true. very true. julie: that something we can agree on. matt: we agree on so much. u.s. markets have recovered. a drop substantial enough to mention. now it is much less. european markets recovered. dax was down with the 2%.

now it is 1%. julie: euro is still not moving. matt: let's take a look at our top stories this morning. in china, government attempts to support the stock market most othervince -- chinese stocks fell. the chinese government has suspended ipos, increase central-bank support for large trade, and boosted stock purchases by statement financial firms. the shanghai composite is down 27% june 12 alone. mcdonald's is going digital in china. it will start testing mobile ordering and payments. it felt nearly 5% in the first quarter as the chain was linked with a company that sold expired meat.

birch heavens gave his name inverted image to burts bees. he started a company with bridesmaid from behind wax. he died in rural maine at the age of 80. olivia: back to the market reaction to greece voting against the proposal would allow the table anymore. welcome to the program. ask for joining us -- thanks for joining us. what you think? we get this overwhelming no vote. bluffing,tsip tsipras is ready to call the bluff. they call a referendum

after defaulting, after the bailout program expired. the cost to the greek economy is so substantial in the short-term. perhaps also in a lasting way. it is coming at a great rate to the people. matt: they are playing with heart if this is a game of chicken. steve: years of mistakes are involved. isthe eurozone generally supporting economic growth in a way that it hasn't in the last two years. that isal reform faithful might be accompanied by sur short-term stimulus. greece is being cut out from that and is not sure it will get back in on that. , theu look at portugal rest of the periphery is 25 basis and under. that is tidy. olivia: not at all what looked like in 2012. very tiny.

steve: fundamentals have changed since 2011. fundamentals have changed since then. european banking as recapitalized. private holders of bonds is 46 billion euros which includes greece itself. matt: at got a last week even as greece decided not to pay the imf. they are still paying private debt holders. steve: there are all these worst-case scenarios. 1.1 trillion in qe over eight months, 320 billion over 16.5 years. the numbers do not imply a contagion. the whole point of all of this being a crisis, it would require

a contagion for this to be a financial is. matt: with the v.a. contagion in greece. -- will this be a contagion greece was thrown out? steve: there has been a bit of spread widening biopic the market believes any other eurozone members would willingly follow the greek example. olivia: as we pointed out earlier in the party that has put up a new picture of him with tsipras on twitter. matt: the spanish communists are not necessarily a powerful party. they are colorful and interesting. this is not a finished story yet but if you go to see what happens to the greek economy and inability to report key necessities and with no

change on the ecb's part this is very bad. olivia: do you think we are not paying enough attention to the chinese equities? steve: what i think is remarkable about this one is if you look at the relation between a shares and others, it is less of a correlation than u.s. and european stocks. up. have a remarkable run my 2007, we don't believe this is the peak in globa and global. matt: thank you. thank you for joining us. that is it for me. will carry on in my stead. ♪

olivia: welcome back. let's get you straight to this morning's top headlines. .ervice industries surging back

service industries are feeling an expansion that has been slowed by weakness in capital investment and overseas markets. members of congress returned to capitol hill tomorrow. they are facing a daunting summer workload and an impending deadline to fund the government or risk a shutdown in the fall. lawmakers face more immediate tasks such as renewing highway funding before the government loses the authority to spend transportation money to the states right in the middle of the summer driving season. more than one million people are expected to attend a mass today in a good or. -- in ecuador. it is the first stop of the pope's nine-day trip. is scheduled to visit bolivia and paraguay by skipping argentina -- but is skimming argentina.

french taxi drivers staged a violent protest against uber. two were arrested and accused of fraud and illegal activity. the french president said uber pop must be dismantled. it is the writer in business that helps facilitate carpooling. the u.s. women's team is a world cup champion for the first time in 18 years. carli lloyd scored three goals just 16 minutes. the u.s. raced out to a 4-0 lead and be japan 5-2 in the final in vancouver. look at this. while the ladies. three-time the first winners of the world cup. >> i think i blacked out. i was on a mission as soon as the whistle blew. i got the extra freedom to do what i do. i am thankful for that. everybody behind me cleaned up

things, defended. olivia: the victory avenged a tough loss letter years ago. the u.s. lost to japan in the world cup final. let's take a look at where stocks are trading at this hour. broader markets are trading lower but we are well off session lows. dow jones off by a 31%. a boost in the -- off by a third of 1%. s&p and dow pretty much flat this point. after a big no vote coming out of greece, the euro resilient to get still holding about one dollar 10.

aetna will buy humana for $35 billion. deck.r megadeal is on to have now been more than $50 billion in health-care mergers and acquisitions this year alone. i want to bring in zach and les. great to have you guys this morning. let's start with the regulatory hurdles. we hear about how much we will see a flurry of consolidation in the industry as a result of obamacare. the need to consolidate. what will the government say about the country's five biggest health insurance tying up. how confident are you these deals will pass? >> i was a the first one is more

likely to be successful in the subsequent deals. when first --tna went first. people don't like their hmos to begin with and they are getting bigger and more powerful. you might see some pushback by think this deal goes through. i would be less confident about for thent deals because very reason this was competition. olivia: humana will now be the number one provider of medic care. way to regulators can address this concern is by acquiring companies like humana to divest businesses in individual markets. when humana bought arcadian in 2012, the head to sell off some of their business in virginia. olivia: what is the next most likely deal? >> we heard a lot about them and cigna tying up. olivia: do they have to raise the price?

>> probably. now there is scarcity value. olivia: initially what they did was they reiterated the price and went public with it. does this deal over the weekend incentivize them to raise the price? >> it does if anthem wants to buy cigna. olivia: what do you think about some of these prices for these deals? i believe cigna was up more than 50% year to date. still this is a punchy premium. you look at these stocks, cigna and humana are up. investors are looking for them to be taken out to put pressure on management -- out so it puts pressure on management. >> ultimately, we wind up with three or four major hmos.

if you want to be a player, you have to have scale. olivia: we should point out humana lowered their profit forecast today thi earlier this morning. united health care is still technically come in and blow up the aetna humanity of. them to do that? >> i think it would be too much for regulators to swallow because united would be number two post this deal. they are number one now. i don't see that as a likely -- i see united being an acquirer. olivia: on the screen we are showing how many subscribers these five big health insurers in the u.s. have. this is a tie up between the five biggest players. >> united is really in a tough spot. they are huge.

they don't need to do a deal because they are so big. 50 million plus members, what do they need to add another for?0,000 olivia: some are saying this will lower prices for consumers. >> that has never been lower prices so i don't see that. lower relative to some imaginary number. there is no cost control. premiums will go up next year. olivia: is this bad for consumers? >> it is bad if you get sick. price inflation over the last seven or eight years has been more moderate than the preceding decade. it deals more with economic factors. olivia: thank you so much. are 36 hours away from yet another iran nuclear deal

deadline. is a deal finally in reach? ♪

olivia: welcome back. we are one hour into the trading session. it is time to get you caught up on the market action throughout the world. i want to start in europe and had to mark in london. >> and another 100 billion euros have been wiped off the value of european equities after the greeks voted no to the austerity over the weekend.

comes off a big week of big declines. that equates to 350 billion euros. 3% in italy. going on herevu where the index fell by 5.2% last monday, the biggest fall in battle years. the fear index, the measure of expected volatility has actually , possibly paving the way for smoother bailout talks. this is the euro against the dollar. more deja vu as well. relax together beginning of the session on sunday evening, the euro fell by 19% and finished -- by 1.9% and finished the session higher. by 1.3% is down now. this is what is happening to

bonds. and avoidance of risk. greece is a factor, but one could argue a bigger factor is oil today. take a look at the major averages. not sharp declines. nasdaq is almost unchanged as we come back. stocks plunged immediately at the open the energy is not the case. oil right now has a decline below $60 a barrel. it is down 4.7%. greece seems to be one of the reasons we are seeing oil take a hint. chinaition to that is where we saw some stimulus put on overnight, some measures to try to juice the economy there. stocks did fall for the most part. the continuing situation with iran and the ca expectation of

more supply coming online pushing oil's stock lower. this is the one-year chart of oil. we have had the plunged over the past year. the red line is $60 a barrel. which rated above and below in very tight ranges over the past couple of months. in the past few sessions, we have broken out of that range, below it's a little bit more significant. it is the worst performing group by far to provide the drag of the s&p overall. still solidly with performers on the dow and s&p are energy stocks. chevron worth dow performer. transocean and pioneer natural resources also taking a hit to the. -- a hitit today

today. fell more thanex 3% and the shanghai composite closed in the green appeare. to gun it was a volatile they index. country's mov >> a mixed effect today with stocks tumbling erasing the shanghai composite early in the 8% rise which was its biggest jump since 2008 . brokerages bounded by shares in the central bank said it would provide liquidity for margin trading. early gains were pared back in the afternoon session. -- byrket closed my 2.4% 2.4%.

here are some of the top stories crossing the bloomberg terminal this morning. at the, it was sister versus sister today. serena williams came out on top beating her sister venus 6-4, 6-3 to advance to the quarterfinals. both sisters are five-time champions at wimbledon. serena is on track for a grand slam. she has already won the australian and french open so far this year. pro basketball players get more legroom on their airline flights than you do. now their flights are getting more roomy. delta airlines has a tentative agreement with the nba to use pulling 757 --- boeing 757. the average nba player is 6'7" in just all. dressing world was the winner at the box office for the weekend in a row.

it took an almost $1 million over the holiday weekend. inside out and the new terminator movie were close behind. those are your top stories of this hour. markets still trying to figure out what all the headlines coming out of greece mean . yesterday we saw the greek people voting eve overwhelmingly against the austerity measures. market is taking it in stride now. s&p is in positive territory right now. a big reversal. dow jones futures were up by 1.5% earlier this morning. at this point, it is little changed. quite a big recovery. i want to get to the iranian nuclear negotiations that keep going and going right now in vienna. didn't like reaching a final deal was extended once until tomorrow. both sides now say they are close but nobody is declaring

victory yet. here is john kerry speaking earlier today via. -- today in vienna. >> we have made genuine progress. i want to be absolutely clear with everybody. we are not yet where we need to be on several of the most difficult issues. olivia: as for the iranians, officials said diplomats may need an additional day or two to the agreement. let's head to vienna. i feel like you this, what are the final sticking point is the deal -- points to the deal? >> there are several. the first seems to be on sanchez will live because iranians want their sanctions relief more frontloaded an earlier. they want to take the steps to the nuclear programs so instead of waiting until the steps are taken, they should take some relief at the beginning. they are pushing really hard on

the other side for access to more than $100 billion in frozen assets of oil funds they have in overseas accounts. there is an issue over access to site an nuclear scientists to his all caps questions -- to resolve past questions over their military work. the u.s. wants to delay the listing of the embargo. iran does not. there will be a step back mechanism to allow sanctions to automatically return if iran were to cheat on the deal. those are the main sticking points now. froma: we just heard secretary kerry who was speaking yesterday pouring a little water on hopes for a deal. iranian official sounding more optimistic. what is your take? how close are we to a deal at this point? my take ishink

probably close to that of the chinese foreign minister who said this is make it or break it point. we have to get it done but it isn't to the u.s. and iran to make the hardest decisions. all the ministers from the p5 are in thembers building behind me negotiating as we speak. with a like to do is get the deal done today or tomorrow. it will be done because as john kerry has said, he is willing to walk away if the u.s. does not the its own medlin red line. the eu foreign policy chief says if they don't get a deal this week, there is no plan b. there would not be another extension and they might be into completely new territory at that point.

olivia: one of the overarching sticking points of the nuclear issueations has been this of the incredible dearth of trust between the two sides. has trust developed between secretary kerry and his iranian counterpart? how would you characterize the relationship. the two teams coming together for the first time in decades to try to hammer out this deal. indira: it is a really good question.it has now been essentially 22 months that the u.s. and iran have been meeting regularly. and hisbet john kerry counterpart have a close relationship at this point.that doesn't mean they are buddies but they know how they work and they have professional respect one another. you are right that the drift of trust is a key issue here not just between ironic but also iran and u.s.ro inspectors. that is a team of these iaea

talking to authorities about what kind of access they will get to nuclear sites. president obama has said this is not about trust but about rust then verify. though still ahead, even the stock exchange has lost a third of its value in the past year, coca-cola is bubbling up. more on that story next. ♪

back --will come welcome back. the athens stock exchange lost nearly a third of its value in the past year. greece's future in the row is -- shares of coca-cola have been bubbly. largest.urope's

it is 10%. am joined now. how is coca-cola bottling company bucking the trend of broader markets? >> you would think a lot of shares would be falling but coca-cola is rising. one of the big reasons is diversification. it only has a 5% exposure in greece but it is across all of europe, russia, and nigeria and 28 countries. if you take a look at the five countries that are the biggest in terms of exposure, that is russia, italy, nigeria, poland, romania, and then greece. you see the pie chart here. those first five countries make up 68%. this diversification is a great thing for coca-cola. investors are seeing they are ok.

they are putting money into the shares. the shares traded on the athens stock exchange, year to date it has risen 27.6%. on the london stock exchange, it is up nearly 10%. on the new york stock exchange, it is down 6.5%. even with greece and all these issues happening in the u.s., it is doing worse than this highly indebted country. olivia: it is a minefield i struggle to understand. , hbc,ors in coca-cola should be more worried about russia's in greece -- russia than greece. ramy: exactly. years,le entire past few president bush's politics in the ukraine war may have given a dent to russia's exposure.

i quenched some of the numbers. -- crunched some of the numbers. it was only up by .6% in 2014. it was the first time in six years it saw a rise in volume, even when all of this stuff was going on. olivia: thank you so much. still to come in the next hour, you will not want to miss this. erik schatzker will be anchoring a one-hour special live from athens. to a new be speaking member of janus capital. one-hour live from athens coming 11:00. ♪

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>> good morning, you are watching a special edition of "bloomberg market day" live from athens, greece. ain't erik schatzker. --i am erik schatzker. guy: i am guy johnson. erik: it has been quite a week and weekend. voted no toe austerity. they sided with the prime minister and rejected the offer on the table from the europeans. opponentin political stepped down today. a real changing of the guard here. the finance minister also deciding he will depart. erik: in his place will likely be the oxford-educated economist familiar to the european creditors, so perhaps there is room for optimism. let's be clear, very little room for optimism.