greece x dan's capital controls on monday. we will go live to athens. we are also watching china were markets have them in freefall. government intervention has failed to stop the plunging stock market. is the bottom insight? time is running out to get a deal on the iranian nuclear program. john kerry said hard choices will need to be made and we will vienna.latest live from betty: good afternoon. mark: thank you for staying with us. let's take a look at the markets on this monday for wall street in the global markets. it is all about greece. voters on sunday rejected the

terms of the country's latest bailout and stocks around the world went lower. let's look at the boards on wall street. the s&p and nasdaq are down and the dow jones is down nearly .25%. of goal ofa check this hour. -- gold. it is trading up over .75%. crude oil is retreating. 5.75 percents down and trading at $53 and 64 since per barrel. market,n the treasury as you can imagine, there is quite a bit of buying in the bond market. the yield for the tenure has come down to 2.31%. a few weeks ago, we were around 2.5%. theeyes are on the euro in currency market. the dollar is also a bit weaker

so there are lots of worries about the contagion from greece. let's look at the top stories -- namedeek government has the new finance minister. it comes one day ahead of an emergency meeting with creditors in brussels. economist was the lead bailout negotiator before the referendum was called. greece voted against recent creditor proposals required for bella cashin he replaces his predecessor who quit earlier today. he said his departure would help bailout negotiations reach an agreement. greases extending the bank holiday and capital controls through wednesday. ngela merkel has arrived at president francois hollande about the crisis. they are checking in a

at walter reeded medical center outside washington, d.c. a witness heard one shot fired in bed -- in building one. police are on the scene checking the report and no comment from officials. president obama is scheduled to make a rare visit to the pentagon today. he will last is national security team for an update on the fight against islamic militants in the middle east. the coalition led by the u.s. flew 38 running raids over the weekend against islamic state targets. . the president will hold a news conference this afternoon after getting a report betty: the south carolina state seven is open debate in the future of the confederate flag on statehouse grounds. the first amendment is being considered. it would put the matter up to the public vote. several amendments are expected with various options that will include keeping the flag pole and putting a different flag on it.

the state governor and business leaders and civil rights leaders are among those opposed to flying in the flag that flew over the confederacy. teva pharmaceuticals will raise its bid for myelin. the original bid was $40 billion andmylin has been drying -- trying to buy pergo. mark: in the next half hour, a 150,000olted reddit - demand the ceo will resign. betty: when do social media accounts become property? if you lose your business, you need to turnover the passwords for those accounts. we will tell you about a court case involving these questions. mark: the chinese government unleashes a wave of support measures designed to stop the slide in chinese stocks. investors so far not tying it.

betty: greece is wearing in a new finance minister just now. he will take the reins from his predecessor who announced he was stepping down today. greece announce an extension of the bank closures and capital controls for wednesday. be to puthard will it the economy back on track if there is a resolution? joe weisenthal has been reporting from athens and joins us live. e: there are two issues that are sort of related that will pose challenges for greece. for one thing, when you close the banks, that means the economy has taken a huge downturn. that means the assumptions about how much money greece needs and where it stands in terms of budget need to be reevaluated. if there is hope for a deal, you have to throw out the old

numbers and try to figure out the new numbers. the other problem is capital controls. once you implement them, they are hard to take away. you send the message to people that if they have their money in the greek banks, they could be locked in and their ability to take it out is limited. the first thing that would happen when they reopen is people will be nervous and think they should take their money out of greek banks. the events of the last several days have createdtwo new challenges the greece has to solve. betty: what about the support for the party? give us a sense of the political dynamics. the government is doing pretty good right now. it won a big victory yesterday with his referendum and got the resulted wanted in a bigger fashion. basically government confirmed it had the support of the other party. leaders of the other parties including those in the opposition said a were behind the attempt to get a new deal.

right now, the government is very stressed. this is a difficult steps -- situation but cpruis looks secure. mark: we mentioned there is a new finance minister. how will he change the dynamic of the negotiations? joe: the ex back tatian is that any change is likely to be in tone. he is seen as a more conservative personality but there will be no change in ideology. some have suggested that he would be less sympathetic to the pan-european vision. it may provide a bit of an opening to open negotiations on a stronger footing but it's definitely not a game changer in terms of solving the immediate need for a deal. needed to put

someone in there and i believe he was one of the candidates before. thank you so much. greece continues to be the hot topic. there is what some of our guests had to say earlier. appears we are in the eye of a hurricane. i don't believe the situation really is calm. >> it's descended into a three ring circus with no ringmaster. that the european technocrats really misread the situation. >> by voting no, 61% of the voters in greece made it very that they want more understanding and they want to be heard in europe. they are resmed as hell -- they are as mad as hell. >> i don't think 30% is enough. i think a will need a haircut of at least 60%. >> i think he has to try to make a deal with the european central bank and angela merkel and say

let's not have a haircut. it would destroy the middle class and destroy actual is those propositions and business hopes. >> to the extent the germans are unwilling to come up of their position and extend their marginal line perhaps is an 80% probability. >> to exit the eu is the last option. if they default and everything, they will basically be debt free. >> if we continue down this road, it leads us to regulation. if that happens, you should expect a's i can global risk aversion and then you will get a selloff in virtually all markets. at that point, good opportunities will be created. joining us now to talk about the impact on the eurozone it cannot me is sarah ewing and joins us from london. of the bankn

holiday in greece, when the banks finally reopen, what do you expect? >> i'm not expecting very much, frankly. i think the capital controls will stay in place for a very long time. we are talking about opening the banks as if that's going to make any difference whatsoever. i think they will -- there will still be restrictions on what people can remove from their accounts. there will still be restrictions on transactions. if we look at the example of cyprus, capital controls state in place for 2.5 years. i think we are in for the long haul and greece. betty: you just heard bill gross 70%-80% chancea of an exit from the euro by greece. would you be in line with that? >> i don't think it's very helpful to assign these sort of rough abilities. i think would bill gross means

is he sees the relatively high chance of a in exit. frankly, we just don't know. withve to see what happens the decision of the european central bank. extend will they emergency liquidity assistance? we have to see how the negotiations kickoff in the next few days. bear in mind that we have a deadline of july 20. that is the point at which the european central bank needs to repay 3.5 billion euros. if negotiations have not gone well till then, there is a risk of default and i think europeans would take a hard line on greece. mark: sunday's no vote, did it give greece and the prime minister of stronger bargaining position when they finally talk to international creditors again? from the greek standpoint, it does.

of course, it's encouraging that there seems to be party support now for the great position. hopefully, they will approach talks with one voice and a clear end in sight. the big problem is that their ai m may not tally with what the european creditors are prepared to concede. i think this no vote sends a message to european creditors that the greek side is not prepared to undertake the sorts of reforms that will be needed. yeare talking about a 2-3 bailout program. what if the creditors have to take a huge haircut? what if it was 50%? is that even in the cards? about a cut.king

the way the creditors will restructuring.s this was always on the table. they would extend out the choices. the euro area is the largest holder of greek debt by far. the repayment of the greek debt does not kick in for another 20 years or so. the idea would be to extend that for another 20 years so the payments don't happen for another 40 years. i think that's the way the debt restructuring will go. it's very difficult for the europeans to go back to the taxpayers and say this debt has had a haircut. thank you for joining us from london. redditstill ahead, will

revolt? 150,000 users signed a petition demanding the ceo resign. mark: we will tell you about the controversy.

betty: welcome back. mark: let's go straight to matt miller. we have been saying it's all about greece and the global markets are falling following the vote yesterday. matt: that's right and there was a bigger drop early this morning at the open.

the dow jones was down 165 points. it was down to a five-month low but we see it only off about .25% of 1%. , down big drops in europe about 2%. they did better than expected. --e a look at the m&a news aetna and humana have a big deal on friday that will maybe change the face of health care m&a or speeded up. edna is down 7.25%. it's a big drop because it is buying humana for $35 billion and humana says we will earn $8.75 and now only 7.75%. it's a disappointment but it could push through the anthem

and cigna deal. there were disagreements there. we reported that anthem wants to buy cigna. at the time it was $175 for the offer. the issue was who was going to run the company. they are still worried about that. mark: thank you so much. ellen pao was at the center of a kleiner perkins this cremation lawsuit and now users want her removal after she fired the torilla tailored, the -- the executive responsible for many reddit functions. mark: cory johnson joins us with more. attention came to our

pursuing kleiner perkins saying things were kept from her because she was a woman. things were cap from her because she was a crummy money manager and her role of the ceo of red dit. about how been talks she has been limiting things. reddit parks to the early days of the web when any user could say anything. the community would come together to vet and weigh in and censor those people who said things that were felt they felt were stupid. reddit is trying to have a corporate role and finally decided to ax victoria taylor who was in charge of moderating those boards. those people have a lot of fans. over the course of the weekend, they shut down dozens of the

discussion groups. overpetition shows up with 150 thousand people demanding that she be removed as. betty: ceobetty: i know there are many erie's eyes to what started this -- i know there are many erie's as to what started this. didn't some of this come from a attlee moderated jesse jackson ama? corey: there was a lot of discussion and racist things were said about jesse jackson. much the very community square and lets anyone say anything. the moderators are meant to moderate but sometimes things go off the rails. one of the founders of the company said that was not the reason she was let go. they would not speculate what the reasons were but that relationship between a community

that does not really want control in a business that does, there is inherent tension. ellen pao is square the middle of that. mark: this is a month after reddit ssays harasses people. corey: i think this is part of the same tug-of-war going on. there are groups of people trying to say whatever they want. there is a belief that even if the people are not involved in those boards that many users feel they have a place that's free and open and can say whatever they need to say. .that's what makes it so special trying to make a business around it is both the problem and the opportunity with something like reddit. it parallels what's going on over the internet for the last 16 years. betty: for a renegade company, they are raising money up to half $1 billion valuation. this is not peanuts.

thank you so much. much more ahead on the bloomberg market day and why one former texas business owner went to jail for keeping his twitter and facebook password and we will explain this case next. ♪

mark: welcome back. has madecial media separating her personal life from business a bit tricky at least in the eyes of the law. one texas man learned the lesson the hard way after his gun store went bankrupt. he spent nearly seven weeks in jail because he refused a federal judge's order to share his business facebook and twitter account passwords with the new owner. he argued his social accounts or his personal property and he was

tweeting and posting. lawmakers maintain if the account can be interpreted as a means of attracting business which it was, those accounts are considered part of the business. . its new grounds for the courts when to these social media accounts become actual property? mark: at some point, it's not just about operative. there are tax implications in business. you will see if you are getting some income deriving from this. is that income taxable? i would imagine that might be something that could be looked at. there are some court cases preceding this that give some precedence. as the judge said, this is uncharted territory. you can look at social media accounts as subscriber lists which have a value. . they can sell them for hundreds of millions of dollars mark: as a business owner, do you then have the ability to protect those people?

do they have a right to privacy because you are the business owner and you have those lists. there is also the labyrinth of legalese to go through. two entities have the right to get your password and go look through those listss? betty: it's fascinating. you don't think about that when used art putting social media accounts together. you never think it might end up in court. i'm signing off on that note. mark: you just left me hanging. betty: you have more coming up. mark: the chinese government is not letting the market go down without a fight and we will discuss a flurry of moves next. ♪

with xfinity from comcast you can manage your account anytime, anywhere on any device. just sign into my account to pay bills, manage service appointments and find answers to your questions. you can even check your connection status on your phone. now it's easier than ever to manage your account. get started at xfinity.com/myaccount mark: welcome back to the bloomberg market day. let's go straight to the stop headlines. warren buffett helped take over

facilitated2013 and its combination with kraft foods this year. his prize is a stake of $24 billion in a new company which began trading today. berkshire hathaway owns 325 million shares after investing approximately $9.5 billion over the transactions to acquire common stock. mcdonald's is going digital in china. the monarchist's largest restaurant chain will start testing mobile ordering and payment in it chinese outlets. sales fell 5% in the first quarter after reports link to chain with a company that sold expired meets. in soccer, the u.s. women's team is the u.s. cut champion -- world cup champion for the first time in 16 years. ade u.s. raced out to a 4-0 le and b.j. upton -- the japan 5-2 in vancouver.

carli lloyd was named the tournament's best player. >> i think i blacked out. i was on a mission. as soon as the whistle blew, with the gel along the next freedom to do what i do, i am thankful for that. everybody behind me cleaned up things, defended. mark: the u.s. win over japan drew the largest major market ratings for a soccer telecast in u.s. history. fox says the game was watching more than 15% of homes in 56 big tv markets. happening right now, french president francois hollande and german chancellor angela merkel making comments about greece in parent. we will be following the story throughout the hour. both leaders meeting in paris. as you are nowhere -- no doubt aware, the greek people yesterday voted no in that referendum. , according toures

prime minister alexis tsipras, are draconian. he urged the greek people to vote no. they did. capital controls are still in place. a bank holiday expected to last a few more days. we will continue to follow these developments and bring you the latest details as soon as we get them. hour, up in a net half markets are shrugging off the volatility surrounding greece. we are watching the first trading days since great voters rejected austerity. miles northwest of athens, diplomats are trying to reach a deal on iran's nuclear deal. that deadline is tomorrow. we look at the chances for an agreement. black friday in july? amazon's latest promotion. another weekend, another move to prop up the chinese stock market. 20 brokerage firms promised to invest $19.3 billion in a

stabilization fund. the move has echoes of 1929 here in the u.s., highlighted in orange on this chart. five of the most powerful financiers agreed to prop up the markets. chinese financiers taking a page out of u.s. history books hoping to wipe out losses of trillions of dollars. joining me now is the chief strategist at silver crest asset management and william hess. gentlemen, thank you for joining us. patrick, let me start with you. it would be easy to put this into -- the chinese are trying to make this work with stimulus, but this is as much about politics as it is about policy. >> and put a lot of credibility on the line. china has had a really stunning rise in the stock market. it more than doubled in the past year. at the same time, the economy

was its year rating and corporate earnings were falling. there was a big disconnect. that cut up to the market but the chinese leadership apparently feel they have a lot invested in this and do not want to see the market go down. talking about an economic boom in china that has lasted about 10 years. decent run, but this is a disconnect between the real sector and financial sector. what they're trying to do now is and retailarkets investors that they have a plan for the future. i think it is not just about propping up the market. they are just trying to prevent it from collapsing until they can come up with a more credible story for the future. there is always talk about reform in china but much slower in progress. mark: what times of structural reforms would be needed? undergo china needs to

a thorough change in its economy, away from the growth model focused on exports and investments, to one driven by consumer economy. the problem is the pumping of have, in anrket may thestainable way, have opposite effect of offloading losses onto the housing sector. i think they are playing a risky game here. high,valuations, when so the stock markets, if you look average p/e the ratio, not so telling. the median was around 85 times its peak. it is just not sustainable to try to give valuations that high. right now, they are intervening, actively buying, offering margin loans for people who want to buy, telling people to buy.

there are a lot of people who do not see the market going up and they want to get out. that is why, on monday, they intervened, but it did not really have the desired results. unlike year in the u.s., the chinese market is dominated by individual investors, not by its two shall investors. how does that change the market dynamic? that is the running story but if you look at the overall control of state owned investors, if you look at the percentage managed indirectly by , the retail story is smaller. the question with this bailout is who wins and who loses. you look at what is happening to some all caps, they are getting hammered. done,his is all said and what does this do for the real prospects of the economy? this was supposed to be about gritty new financing channels for the future and this is

interrupting all of that. mark: is this one of those things where you see the president moving away from the communist party playbook and now this is happening, does that open him up to criticism? ofrick: he made a knot echelon of announcements about reform and that the market would be decisive. we have not seen as much progress as we have needed to see to put the economy on the right track. now, trying to prop up a market that really needs an adjustment, for the health of the chinese economy, i think, that goes in the wrong direction. it risks both putting a lot of political credibility on the line in a way that may come back to bite them, but it entails an injury risk. instead of a lot of speculators losing their money, you may have is these losses shifted onto core financial institutions in china, and that scary.

talk about any headwinds that may be the result of this. would this start some sort of concentric headwind that makes its way over here in the u.s.? will: theoretically. china's outbound strategy we see as a long-term taper. supporting real term investment abroad. that could be delayed with firefighting at home. certainly, china has been the largest jupiter to growth for years. if that weakens, that will feed back into things. right now it seems pretty will contain within china. mark: our colleagues at bloomberg news interviewed the chinese strategist at bochum international. cleard systemic risk is a and present danger, and must be dealt with. it is difficult to manage us a difficult ecosystem like the stock market. talk about that systemic risk. patrick: one of the big sources of systemic risk right now is that the market is driven by margin lending.

both the formal securities firms and also informal shadow banks. thisalculations are that rose at its peak at about 12% of the total market flow which is the highest level of any market recorded in history. that is fine when things are going up. when things go down, that means people are forced to sell. that is what we are seeing right now, a lot of forced selling. they are trying to contain that, but especially the role of the shadow banking institutions, which they don't have much control over, i think you will continue to see some selling as long as there is a fear that prices will go down. mark: how does this end, what will happen, how is president xo thisng to manipulate to turn this around? at the crashlook

in the u.s., it took a number of years before the market actually crashed. this could be a long putter volatility and adjustment. easy to be critical of what they are doing, but nobody will let them collapse. this is trying to fight a fire for a day, a problem deferred is a problem solved. we calculated from week to week. mark: william hess, patrick chovanec, thank you. have legs.will we will we talking about this for a while. the new greek prime minister tsakalotos is now speaking. he says the greek people resisted pressure and that they go a big thank you to the former finer minister -- finance minister. meanwhile, francois hollande and angela merkel just finished making comments about greece in

paris. chancellor merkel says she respects the vote and the door remains open for talks with greece. stay with us. ♪

to theelcome back patrick bloomberg market day. let's get straight to a check on the market with julie hyman. this is all about greece, the global markets are seeing what happened yesterday with the vote falling and wall street is falling as well. julie: it is although we are not seeing dire sentiments projected in the market today. we are seeing declines across the board but they are not steep declines.

steeper than earlier and there has been some volatility in today's session, which we will get to. the dow down 85 points, but consider rainier on it was down about 160 points. quite a difference. if you look at what has declined the most, let's go into my terminal 2 take a look at the [inaudible] we have energy shares down by 1% , leading declines -- i think we have some technical difficulties. in a we will get back here few minutes. now let's take a look at the european market close. mark barton report from london. another 100 billion euros was wiped off the values of european equities. that comes after the biggest weekly fall of the year last up theen the .4% came value of the stoxx 600.

that is equivalent to 350 billion euros. take a look at italy. last week, fell 4%. down 4% again at the close today. jpmorgan cutting its rating on european stocks to the equivalent of a hold to a buy. expect to does not selloff from the same scale in 2010 when greece received its first bailout. here are three of the big decliners. it was the banks that led the decliners on the stoxx 600. take a look at the leaders. lowest price ever for the italian bank. great exposure to italy sovereign debt. engine maker,he cutting its full-year profit guidance, halting a stock buyback. portugueserk it --

lender, another example of a parochial lender falling on a fear of grexit. angela merkel is traveling to withe, to paris to meet francois hollande. that is all for me. at ouret's take a look top stories crossing the bloomberg terminal. service industries bounce back in june after hitting a 13-month low. sales in orders grew last month in the service industries. the new ceo of rolls-royce is moving quickly on his second day on the job. for thehe outlook engine company and also halted a share buyback. shipd has been slow for engines and jet engines used on certain airbus models. for the second time, a court has overturned the conviction of a former goldman sachs programmer

who took the company's high computer trading code. a new york judge handed down the decision today. the state of new york could still pursue the case against the trader. is charges were overturned. the european central bank as cap emergency liquidity for greek and banks unchanged. the ecb keeping the emergency liquidity for greek banks unchanged. scarlet fu is here. , this we get to the story is an interesting development coming on the heels of that vote yesterday, the no vote by the people of greece. scarlet: we kind of knew the ecb would not be changing the way it supported greek banks until we got some sort of indication from the euro elliott and the greek leadership about what happens next. the european central bank does not want to be determining anything here.

it will follow the lead of how negotiations go. mark: as we were talking in the last half-hour, betty was asking our guest about those haircuts. we were have received word that the ecb has adjusted the collateral for greece. a lot of moving parts here. it would seem the ecb, at this point, understand that when that --called bank holiday ends --ended for another 48 hours the world markets will be watching what happens with the banks. will there be a run on the banks? people have only been allowed to take out 67 euros -- it remains to be seen what happens next between leadership and who negotiates. who has the upper hand here? tsipras certainly got a vote of confidence from his citizens, but the euro of are coming out with stronger rhetoric. mark: what we were going to talk

about, goldman sachs, the man behind these twitter accounts, he has a memoir coming out which "straight to hell," documents his years working on a goldman sachs fixed income desk. he was working in hong kong for about nine years, so i would definitely want to read it. they be any anecdotes that i would recount. the book almost did not see the light of day. scarlet: yes, he got the deal when gs elevator was all in fashion. then it became known that he did not work in goldman sachs and at this is more of a commentary on the banking culture. he saw plenty of that in hong kong. tales of deviance, debauchery. and lifethe usual sex of excess that they will

recount. mark: the frat boy thing. exactly, but more of a commentary on the whole banking industry. although it has changed the last two years. in the next hour, we continue the conversation on greece now that we know the ecb has kept the elaes on unchanged. clive crook's will be with us. mark: the ecb says that it will use all the tools and its mandate. we will talk about that in a few minutes. still ahead, we will head to vienna where there is a final push for iran nuclear negotiations. indira lakshmanan is following the story. ♪

mark: welcome back to the bloomberg market day. after years of negotiations and a deadline that keeps getting moved, the u.s. could be closer to a nuclear deal with iran. deadline is tuesday night but secretary of state john kerry is tempering expectations, saying talks could go either way. indira lakshmanan is traveling with secretary kerry and joins me from being a.

what is the latest? indira: in the building behind , we have the chief foreign ministers from the five powers who have permanent seats on the u.s.,ty council, the russia, china, and pretty big european nations, along with iran. they are marking out the last sticking points in the deal. if they get this deal, it will some aspects would go on for 25 years. no one was to get anything wrong on both sides of the table. they are pushing hard to get the best deal possible. even though the latest deadline is just over 24 hours from now, i don't see indication that they will meet the deadline tomorrow night. talk about some of the contours of the deal, what is involved? exchange, broadly speaking, for curbing its nuclear work, overtime, over the next 15 years, iran would get

relief from a variety of economic sanctions, which we all the economyit it's badly. oil exports have been cut in half since 2012 since they had oil embargoes, and all but cut off from the banking system worldwide. what this would do, if it happens, iran would have to reconfigure its nuclear program as well as give access to international monitors, broad ranging access, to prove that it is not cheating and covertly trying to get a nuclear weapon. in exchange, the international community would lift banking and oil sanctions and give them access to $100 billion in oil funds frozen in accounts overseas. has: one of the criticisms been that a deal would allow iran to maintain a significant portion of its nuclear infrastructure. how is that criticism being countered by the administration? indira: the administration says strongly they are cutting off all of what they call out to a

nuclear weapons. uranium, plutonium, a covert path. according to them, they are taking care of every possible way that iran could be doing this. therefore, they say there would be such strict monitoring on a program that there is no way iran would be able to get a weapon if the deal came through. that is the big if. mark: indira lakshmanan on, thank you. hour, up in the next half thomas farrell, the ceo of dominion resources mosby to alix steel at 4:15 p.m. new york time. coming up in a few minutes, the latest on the situation in greece. the bloomberg market day continues in just a moment. ♪ we live in a pick and choose world.

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turning up the heat against alexis tsipras to design a plan to save the euro as the nation was forced to extend capital controls. are in: chinese markets freefall. government intervention has failed to stop the plunging stock market. soccer, golf or rory mcilroy gets a serious injury. how far this is for his sponsor nike. good afternoon from bloomberg old headquarters in new york. scarlet: let's get straight to the markets. it is a risk off day but fairly .enign if you look at the euro, fall to a one-week low versus the dollar . earlier in dropped as much as 1.3% buted