mark: the clock ticks for tsipras as greece gets hours to prepare for an emergency summit in brussels today. anna: shanghai settles, $3 trillion route. >> axel springer is said to be in talks with broadcaster about the deal that could be worth over 14 billion euros. >> welcome to countdown, welcome to athens.

i am guy johnson. caroline: i am caroline hyde in london. we are talking about the markets because it is all about china for me today. we are looking at greece if we are looking at your. we have to look at the china shanghai composition 3.2 trillion dollars have been wiped off in terms of market capitalization in china. we have it down 30% in three weeks. bank of america, morgan stanley, all warned of this bubble and now not only the internal investors but also outside investors, those looking from hong kong. ipos has canceled funding. guy: what do you expect? yesterday, we saw it close.

at the end of the day, it was only up a tad and today we see a banking. greece is the other story that we are watching. we want to know what is going to happen because there will be another busy day. the finance ministers are meeting in brussels. a new greek finance minister will be meeting them today. that happens in just under six hours in brussels and then we have the leaders gathering. mr. tsipras will be rolling into town and he will meet with angela merkel, and all of the other euro leaders. caroline:there has been a lot of preparatory work. mr. tsipras will have to deliver something. caroline: we will be looking at the market reaction. the bond market expressing a bit of their concern, italy, and spanish foreign costs are rising. it is still alexis tsipras

facing fresh pressure from creditors going into today's emergency summit in brussels. angela merkel and french president ward greece that it is running out of time. guy: the onus is on tsipras to strike a deal. what is the prime minister's plan? let's go to hans nichols. he is in brussels. guy johnson is in athens. what are creditors expecting from mr. tsipras and tell us, will we get a deal? >> if i had that information i think i would be worth a lot more than i actually am. what creditors -- what creditors are expecting is a medium-term deal. mr. dijsselbloem was very clear on this and madame merkel has also been clear on this. that may rollout the prospect of a possibility of a bridge loan

or short term financing. listen to what angela merkel said yesterday about how she want to have one comprehensive package. angela merkel: we are saying very clearly that the door for talks remains open. at the same time, we are saying that the preconditions to enter negotiations for a concrete program are not given at this time. this means that tomorrow it will be important that the greek prime minister tells us how to proceed and what precise proposal he can offer us regarding a midterm program that will lead greece that into prosperity and growth. hans: i have to say that the mood seems pessimistic. yesterday, there was a conference call, euro area officials. very little progress was made during that call. today, we have a flurry of meetings you mentioned.

then the leaders will be here at 6:00. there was some diplomacy last night. president barack obama made some calls. secretary of treasury made some calls. he called his new counterpart. it seems as though there is a lot of recognition by everyone, including defenders of greece that this is the last chance and that mr. tsipras has to put forward a plan that makes it legal decisions. the kind of cuts that up to this point, he has indicated he is unwilling to make. caroline: meanwhile, thanks -- banks remain closed until wednesday. hans: the ecb is not giving any more of a lease. they are tightening at least. there was a call between mr. tsipras and mr. druggie after the ecb made their decision on emergency liquidity assistance. they kept it the same -- right around 89 billion. they did increase the haircut on

the collateral that they required to make those loans. they are tightening things up. they are not indicating that they will give any sort of lifeline. if you need something or want something to happen, it has to happen at the leaders level. it has to be comprehensive. it has to be difficult for mr. tsipras. >> i re-watched your interview last night that you did the new finance minister of greece. you spoke with him monday of last week. one of the few people on the planet. give us some insight. is this a guy that can get us a deal? >> the issue is that everyone is saying there should be a fresh start. he has been scoring points on the negotiating team for the last few months. everyone is expecting a significant shift on the ground here. he has been around for a while.

he is very well known. he has been around. i don't think you are going to get a significant step up here in the tone of the negotiating story. the change needs to come from mr. tsipras. yesterday, he was speaking about their pockets. they are very different in their styles. but similar in their thinking. take a listen. >> a news -- he resisted and said that his country deserves more and we cannot accept a nonsustainable solution. ordinary people. working people. the middle class. those who lost their business. they want to trust their government that will bring a sustainable solution. >> he was the most likely finance minister.

it was only late in the day that the other became the closest financial advisor. it is been happening for a while. yesterday was big news that he resigned. he has been playing a major part for some time. mr. sack a mr. tsipras needs to make the biggest change. he has brought all of the leaders in greece together. we now have a political story here that is very different from the one that we had for the last few weeks. the fact that you have some source of a meeting of minds here in athens may provide mr. tsipras with the necessary political momentum to strike a deal. increasingly, the best case scenario of many analysts is that greece will leave the

eurozone. it is just a matter of time. guy: the banks have been closed for a week and we learned that they will be closed at least until thursday. what is the mood on the ground? >> frustrating. last week, most greeks took a stoic attitude. as time drags on, that will become increasingly difficult. mr. tsipras does have momentum with them. he is still incredibly popular. we still have demonstrations over the referendum. he still has a lot of credibility with the people. it is fairly calm here in athens. as the story continues to progress without the banks opening the economy increasingly runs into trouble businesses are having to increasingly shut down. they normally do that for the summer.

this economy is grinding slowly to a halt. that will make it very difficult to restart the economy even with the deal. it is getting tougher and tougher, ryan. ryan: thank you. caroline: let's turn from greece to china now. it has been another turbulent session in shanghai with stocks tumbling to their lowest level since march. let's get out to judith in hong kong. phenomenal. more than $3 trillion. that seems to be the overseas investments coming out today. judith: good morning. we have the shanghai composite coming back online. selling is down 3.5%. we are seeing a lot of that money coming down through the small companies. they are all being hit quite hard.

those that have the backing of the state are doing quite well. about 23% of mainland chinese stocks are now in a trading halt in china. china is also targeting shortselling eye limiting futures trading. it is also flowing into the hong kong market where we are getting retail investors moving out of china. you can see there that the axle hong kong-based that rely on the hong kong government are doing quite well. those that have inks to china are not doing that -- those that have links to china are not doing that well. we have also had an interest rate decision come through with australia. in -- terms of trade have really dropped in australia. a six year low. below 75 u.s. cents.

interest rates are on hold in australia. at that record low of 2%. that is not helping -- that is not hurting the overall us trillion share markets which is up i 1.6% at the moment. caroline: those economists that we survey thinking that 2% would hold. ryan: some struggles in the second quarter with the south korean tech giant missing estimates. we asked if their latest smartphones have missed the mark. more on that, after the break. ♪

caroline: welcome back. it is 6:15 a.m. in london. ryan: here are the stories you need to know this morning. the german chancellor has said time is running out for greece to make a decision. the greek prime minister is arriving in greece -- in brussels later today where he

will meet all of the european leaders. the finance live it -- the finance minister will be there as well. the maker of the galaxy smartphone posted its seventh straight profit drop as its second quarter. we go to china. caroline: benchmark share index deepened today after a flurry of measures to shore up the market failed to prevent a record drop. the shanghai composite hit its lowest levels since march the 20th. the $.2 trillion have been wiped from the value of chinese stocks. to buy $19.3 billion worth of shares. ryan: some more of what you need to know. german television organization is in talks with springer. the dow jones broke the story

first. discussions are at an early stage and, after springer tried to do much the same almost a decade ago. that was blocked by german competition of authority's. axel springer is valued at just under 5 billion euros. caroline: let's have a look at some of the stories for you. samsung's struggle to lower customers from apple has just gotten harder. the maker of the galaxy smartphone has posted its seventh straight profit drop. let's go to a bond who has the story. can they turn this around. a slowing of sales. the ethics is not -- yvonne: that was supposed to be the right start for the second quarter. everyone was hoping that the

second quarter would be the turnaround for samsung. as you mentioned, seven straight corridors we have seen profit drops. the company forecast that they released a few weeks ago missed analyst estimates. the s six sales are not as strong as the market has expected. that is the one with the curved screen. that was a special part of that phone. the problem here is that it was not so much about demand but supply the first couple months of the quarter. that lead to shortages which trimmed sales. that failed to regain customers that switched to the iphone 6. you also have the cheaper phone options putting more pressure on the low end it is a supply issue early on. they started production in a third factory. by june, the sales just did not take off.

they are struggling in the low and high end of the smartphone market. smartphone shipments were still flatlining. ryan: it cannot be all bad. tell us what is going on in the tips business. -- in the chips business. yvonne: they still say that valuations are still good. samsung is diversifying some of its portfolio here. you have semi conductors also. which is the growing drive here for the company. memory chips are still booming here. earnings from the semi conductor unit art $2.8 billion which is two times bigger than we saw three years ago. a lot of guess we spoke to today did high that. sources also say, a couple of months ago, that the main chip for the next iphone model could be coming from samsung which is regaining the customers that it

had previously lost. the one advantage samsung has is that it provides its own memory chips and display. if we continue to see those smartphone sales, the eye sales falter, that could falter -- that could hurt. caroline: thank you. ryan: time now to turn to the markets. all eyes firmly fixed on greece again ahead of today's emergency summit. another one of them. let's talk with jeremy cook to talk us through it. the most interesting development yesterday or nondevelopment was the ecb coming out. keeping the cap where it is. and fiddling with the collateral rules. the ecb will not leave greek

banks out to dry. jeremy: they are trying to appease the rest of those in the euro. letting greece run willy-nilly. we have not seen an increase in the limits there. ryan: they can't do that politically. it is impossible for them to give a great banks more money. jeremy: could they just give them an actor bit of cash. ryan: over the course of that -- jeremy: over the course of this season. it is a huge amount of money. they are in arrears to the imf. the imf has not gotten its

cashback. that is when we start to talk about parallel currencies. greek script being offered by the greek government. all of the euros being chased out of greece. caroline: what is your best case right now? the fact that we could get money being printed by greece. are you expecting a greek exit? jeremy: i still expect that greece will remain part of the euro but i think we will go through a season of a parallel kurt -- parallel currency being used in greece. i still think that the political impetus and desire to keep greece within the eurozone -- i think we will have shouted deal. maybe not tonight. another emergency summit will probably be called by the end of the week. caroline: who is eventually

going to come out with having to give up more in the compromise? jeremy: i think it is the creditors. for all of the good work that angela merkel has done for the eu, this would be the first line of victory. i think that they have to give way. or the imf -- that needs to happen. the dynamics dylan -- do not work. ryan: does that set up a president for other countries that have been following the rules? jeremy: yes. the moral hazard of that is used. ryan: it makes tsipras look like a winner. jeremy: by december, i think he will be named hero of the year. the moral aspects of the

european union moving forward will have to be changed dramatically. the way that the ecb deals with the funding of each individual government. it -- it is the banking sector which is the main pressure point in greece right now. as soon as we can relieve that, gears will start turning again. caroline: what do you expect in the short-term? do you think the banks will reopen? jeremy: the withdrawal has already gone down and it could go down to 20. as soon as we see liquidity dry up, then we will see the greek government issue some sort of currency. as much as people want to stay in the euro, they cannot buy

food and drink with the currency in their pocket, you may see another token currency. ryan: what does this mean for the euro? where do you see -- jeremy: i hope we will still get a deal. maybe that is hope beyond hope. i think we all know that the smb and other european funds are going to try and make sure that their currencies are not getting crushed as a result of this. a couple of market forces there. i still think we will see the euro-dollar right do well. caroline: tomorrow, we also have a budget in the united kingdom. what are you expecting? jeremy: the key take away is that the fiscal retrenchment that we will likely see in the united kingdom -- everything

will be frontloaded while the goodwill from the general elections still remain. the monetary policy will still stay loose in the united kingdom. that will be a buffer against the fiscal retrenchment. focus turns away from the budget to a british exit referendum chance. this is the worst advertising you could have. they could just point to this and say -- look at this. this is the eu in active. all of the greatest minds in the you have done this. we really want to be a part of this. ryan: chief economist and head of strategy jeremy. caroline: we will have special coverage of u.k. budget here on bloomberg tomorrow. that will be live at 1230 london time. we will have a special program at four clock p.m.

featuring top talents across blue bloomberg. ♪

ryan: welcome back. caroline: here are the stories that you need to know this morning. german chancellor angela merkel has word at that time is running out for reason to save its place in the euro. that comes as leaders in finance ministers gather in brussels today. in the wake of a resounding no vote in greece's referendum. ryan: the slide in china's benchmark share.

the shanghai composite is at its lowest level since march 20. more than $3.2 trillion have -- has been wiped off of the value of chinese stocks in less than a month. despite efforts from state run legislative firms to buy shares. caroline: oil prices are stabilizing a little after crudes the is declined amid signs today that the deadline for a nuclear deal between iran and the west will be next. iranian officials says an agreement that could lift sanctions is not assured even as differences in the negotiations in vienna continue to narrow. oil is trading at its lowest level since april. there is a deepening debt crisis. ryan: let's get more on the talks going on in vienna on iran's nuclear program. elliott has been following the developments. are we going to get a deal?

elliott: no deal yet. probably we'll not get one in time for tonight's extended deadline. negotiators from world powers. there is some called for optimism. chinese foreign minister is telling reporters that a comprehensive agreement is in within reach. john kerry urging people not to get too carried away. john kerry: over the past few days, we have in fact made genuine progress. but i want to be absolutely clear with everyone. we are not yet where we need to be on several of the most difficult issues. elliott: a couple of the major stumbling blocks as expected include the pace of sanctions relief. there is also disagreement over the lifetime of snapback

provisions. this is the automatically a position of sanctions on iran is -- if it is found to be in violation of any details of the agreement. from iran's perspective, they want an agreement that provides for a way -- for them to restart there research if sanctions are not reveal -- are not listed. caroline: if there is no deal by thursday, could the start to be a problem? elliott: it could. tonight's deadline is an artificial one. in the sense that it can be moved to another day. nothing that it will not make much of a difference. that real deadline is july the ninth because if they don't reach an agreement by then, that will extend the. e period. if they go beyond july the

ninth come it will go beyond 60 days. the longer you have an agreement on the table, not having it signed or ratified, the larger the window of opportunity there is for hard-liners in iran to try to scuttle the deal and opponents in congress and on encouraged by netanyahu. caroline: 10 straight days. ryan: our next guest has been spending a lot of time thinking about greece and what is next in terms of what will take place in brussels. he says that the fiscal and monetary inflexibility of the eurozone remains the big problem. he has also been chuckling as he

listens to elliott talking about the never ending talks taking place in brussels. they have been going on for 22 months. joining us to discuss all of this is our guest, peter too good. leaving the iranian talks, one of the interesting things we have seen that is slightly connected to iran is the oil price coming down below $60 a barrel. this has happened twice. in the last year. both times, it went north of $60 after about a month. if they get a deal in iran, we could be in a new band. what does that mean for investors? peter: they have been very sure. fracking has continued to increase. the point is that nothing has

changed in the inventory. output is still strong. saudi's have not taken any steps to change that. the price below $50 looked a bit insane. previous declines have taken a long time. outsource --demand is not that we. ak. it adds to supply and the idea that it is not as vulnerable as one would imagine. if you look at chinese growth --

the growth numbers are an illusion. something is slightly wrong. apart from the mix which is changing and china caroline: it has been happening since june 12. there is this risk that is gathering speed. peter: we spoke about this last month. it is insane. margin debt was as high as it was in the u.s. in 29. more importantly now, the people who have invested are in the red. those accounts opened in q1 and q2 and those people are now in serious loss. let's look at china. you can be as communist as you want but nothing will stop

people. at this precise moment, margin debt is taken down. 36% off. and probably with no reason to see that stuff. mark farber said 40% off of the top. i think that number is right. you are still 100% up. it is actually growing. earnings are slipping away in china. those are big numbers. the last time they had this kind of core production, the 10 year cycle, the industrial production numbers in china are very poor. the macro effect of this is hard. caroline: chinese stocks continue to be lowered.

peter: and the european perspective, greece is interesting from the sense that people are presenting this as one falls and everything else will follow. you only have to look at the peripheral bonds frien spreads. they have been perfectly correlated. the contagion is simple. 40 billion of the greek debt is in private hands. what liquidity event will happen? the laypeople that will not be annoyed will those -- are those that do not have to sell. there is no macro contagion. the authorities will overdo

liquidity because they are nervous. i think that will help prices. i am bullish of the idea. that encourages more risk taking. it is very easy to spot. ryan: you mentioned the greek people. i know you think the referendum was an irresponsible idea. if as our last guess was adjusting, he thinks the prime minister and's of getting a deal in the end, he will be man of the year on time magazine. you never know. if that happens, it was a good thing. if they win debt relief as a result of this referendum, if

they are able to get a deal today or tomorrow, as long as we have a deal by july 20. maybe this referendum was mark. peter: having a country divided into to below is not smart leadership. leaders are not -- leaders are supposed to lead. leaders are supposed to come up with a plan. he walked away from something. he walked away and said i will have a referendum. this is not the behavior of a grown-up. the finance minister had to resign. the point i am making -- it is a great game of backgammon. if you look at what they have done, it is brilliant.

he has met this match this morning. applying pressure he said he has come with a proposal. he stormed out last time. debt relief links to reform. the only way you are going to get reform -- the answer is to find a degree of compromise. the slovakia ends and the polish, they have all come out and said we have to get this for our people. and then you get to spain and portugal who have gone through the middle of this and what are they going to say? it is a political thing. it was political from the start. and that is what people are missing. economically you say it relief. you don't actually know where you might end up. caroline: you're staying with

us. stay tuned to countdown because we will take a look at the greek crisis from a different angle. we will ask our next guest what a grexit would mean to the german economy. ♪

ryan: welcome back. caroline: here are some of the top stories you need to know. german chancellor angela merkel has warned that time is running out for greece to take its place in the euro. that comes as euro zone leaders and finance ministers gather in brussels in the wake of greece's resounding no vote on sundays referendum of the bailout package. last night, u.s. treasury --

u.s. secretary of treasury urged them to work towards a constructive outcome. ryan: the flight in china's benchmark shares deepened today as that flurry of measures to shore up the market failed to outweigh record drops in margin debt. the shanghai composite hit its lowest level since march the 20th. where than $3.2 trillion has been wiped off of the value of chinese stocks in less than one month. that is despite pledges from state run funds in a halt to initial public offerings. caroline: oil prices have stabilized after grew the biggest decline since february a missed signs that today's deadline of the nuclear deal with iran and the west will be met. iran says an agreement that list sanctions is not the short. even though disagreements in vienna continue to narrow. investors avoided risking

assets. ryan: angela merkel is warning that time is running out for greece to stay in the euro and is pressing hard or mr. tsipras to come up with a viable plan at today's emergency summit. i am not sure you can call it an emergency summit since we've party has several with the same title. what is the wider german take. he joins us from berlin. reiner, thank you for joining us. i want to start with this perception that we all have that deep down inside the germans when they look at what is going on in greece, they say, they deserve it. is that an accurate view or are the germans going to be more sympathetic? reiner: i think the german citizens are very much afraid that greece could leave the

monetary union. the opinion today is that today will be the last chance to find a sustainable solution. caroline: your union members they would prefer reason to remain within the eurozone? reiner: a huge majority would prefer that greece stays inside the monetary union because politically it would be very crucial situation, not only for germany, not only for greece, i think it would be a challenge for all of europe. they should give a signal today that europe is able and has the capacity to deal with this crucial and huge problem. ryan: let's talk turkey. what the greeks want is debt

forgiveness. is that something that angela merkel can sell at home? our germans prepared to do that? if greece was to exit the eurozone and the european union, how much of a difference does it really make to germany given that it is a pretty closed economy? reiner: a grexit would be much more expensive for german citizens. if it comes to the debt situation in greece, i think what is needed is a much longer time perspective to restructure the debt and to prepare the conditions that greece will be in the position and have the capacity for the next few years to come back to a sustainable economy which includes sustainable employment.

if greece is not in a situation where they have this perspective based on solid investment not only a stared he policies but giving greece a future based on investments, would be one of the most important things that we have going on. caroline: we have the french prime minister speaking at the moment saying that they are doing everything to greece best to keep greece in the euro. -- to keep greece in the euro. how worried are you about contagion? will there be spillover effects to spain or italy? reiner: the situation in spain and italy is different. spain and italy are in a different position that greece is in today. this has to do with the different economic structure.

the solution in greece would have a positive impact for italy and spain if greece were to leave the monetary union this would have a negative impact for other countries in europe. therefore, every effort today should be made to come to a solid and sustainable solution. ryan: thank you very much for your time. chairman of the german confederation of trade unions. caroline: let's take a look at some of our other top stories. on bloomberg.com right now. peter also joins us. you're looking at the u.k., you are looking ahead for tomorrow. peter: it will be the first one for the conservatives in 19 years.

we have a profile from the former prime minister and the heir apparent to david cameron. ryan: heir apparent. i havee not been paying attention to my british politics. really question? pete: this market is supporting him. caroline: what are you looking for tomorrow in terms of the budget? >> it will be business friendly. they will cut the income tax rate. i don't think that 45 is unreasonable. i think at this point that when

finances are stretched he will have to give tax credits. it was supposed to be 2 billion and it is 20 billion. they have gone completely out of control. it is an obvious target. they are making themselves look like the nasty party by cutting the tax rate. caroline: perhaps it would help you have a great story on luxury. >> there was a big rush in luxury house sales. we have been crunching data on this and there is actually a big drop in the number of sales. caroline: people are putting

their houses on the market and no one is buying. pete: there is more bad news to come through. in july, historically, prices go down as everyone goes on vacation. ryan: it begs the question, if osborne is going to do anything on the non-dom front some of those people that put their houses of for sale are not non-dom. you're talking about easy target. do you reckon he will do something there, or should do something there? peter: people that actually live here and claim non-dom status. you need to refine the law. the law was not meant for those people and the law is being abused.

ryan: for the u.k. incorporated. peter: it is better that the house prices push out and into the southeast and beyond is much stronger. this matters far more to the u.k. economy than what is happening in the middle of london. caroline: fascinating. a fascinating talk on luxury. let's talk about roles races. ;sls royces. p: we haveete: we have good figures on luxury car sales. the figures at the moment is about 500,000 luxury cars being

sold in kazakhstan, azerbaijan and vietnam. that is expected to go up to more than a million. caroline: on that note, we will leave it. ♪

ryan: greece is given hours to submit a deal proposal ahead of a meeting in brussels today. caroline: the benchmark tumbles to its lowest level since march. ryan: the newspaper publisher axel's prayer in talks with spri nger for a deal that could be worth 40 billion euros. welcome to "countdown."

"countdown let'scaroline: check out this chart. we are tracking it over the last month. it is coming off its highs since june 12 now losing $3.2 trillion worth of value across china in terms of the stock market. we are seeing it continue to drop downwards today. what is still phenomenal is despite the selloff the median valuation of socks on the shanghai and the shenzhen exchanges are 59 times reported earnings. many saying this has far further to go. we have blackrock credit and morgan stanley, all these institutions and the government is fighting this using funds.

ryan: year on year, nearly 100% rise in share prices. yesterday or the day before yesterday over the weekend we saw the government step in and try to prop things up. that did well for couple of hours. ryan: what we want to watch is the greek finance ministers will meet at noon london time. that should be interesting. it will be the first appearance of greece's new finance minister. he is well-known by everyone there. and in addition were will have the leader summit. this is -- that is where mr. tsipras resurfaces.

caroline: we have seen money move into german debt markets. contagion limited although we are getting some eta -- data. maybe this is taking its toll. ryan: the assumption is it would remain unchanged. caroline: the german chancellor and francois hollande have worn that greece is running out of time to save its spot in the euro. ryan: striking a deal after greeks voted against any further austerity. what is the prime minister's next leg? let's get to hans nichols. guy johnson is in. what are the creditors expecting

to hear from the greek trimester? hans: they want to hear about plan that is a medium growth plan. they want to do this in one full shot. we have heard from the french prime minister come he repeated this idea that debt restructuring should not be taboo. the french have an ally in citrus -- tsipras. mrs. merkel is talking about a single medium-term growth package. have a listen. >> we are saying very clearly that the door for talks remains open and tomorrow's meeting of the heads of state ought to be understood in that sense. at the same time, we are saying that the preconditions to enter negotiations for a concrete esm

program are not given at this time. tomorrow it will be important that the greek prime minister tells us how to proceed. and what precise proposals he can offer regarding a midterm program. that will lead greeks back into prosperity and growth area -- growth. hans: it is hurting greece it could be a viable play. greece needs to make some painful decisions, he said. there was a euro area working group conference call. according to two people familiar, there was not a whole lot of progress, very little progress made there. finance ministers meet at one and the leaders are here at six. a flurry of calls yesterday. president barack obama urged him to get a deal. we will see if pressure from the americans has any effect.

the greek banks will be closed likely through thursday, maybe through the end of the week. ryan: i re-watched the interview you did with greece's new finance minister. is he going to cut a deal and what should we take away from this picture that was making its way around twitter with where he is on the back of a motorcycle? is he the guy driving the train or the motorcycle? guy: people are talking about this very different. they have a different style. very different in the way he comes across. he is also [indiscernible] but they are much on the same page in the way they see a deal.

the style may be different. he has been driving the negotiations. we are not going to see a big shift in [indiscernible] because we have a new finance minister. if you look -- listen you get that impression. >> he resisted and said that this country was -- deserve something more. the boat has class characteristics. ordinary people, working people, the middle class, those who lost their business so they want to trust a government that will bring back a sustainable solution. guy: i think the person who is making the big move will change towards this deal. i think that is where you see the change happening. they are part of an inner core.

i think you need to see him mr. tsipras, changing his attitude. what is he going to do to change the conversation later in brussels later today? caroline: we want to be looking out to what the ecb and all of this the role of this. give us a sense of what the ecb's decision of not extending the ela but raising those haircuts, keeping the least tight. what does it mean for greeks and the politicians? paul: it has not increased the ela. it is there for the banks to continue tapping but at a cost. the increased haircut, the increased discounts. banks have to put more of their

assets in order to get the money. they did not have that much left over. i could be the greek banking system is getting ahead of the liquidity that is flying around. the exact amount of assets that the greek banks have is a little bit fluid. so it is difficult to say how much room is there. it is not much. politicians have to get their act together and get this deal done. the ecb has not given greece a hard deadline as we understand to get a deal done. they had done so in the past. not this time around. let their be no doubt about it. time is short. ryan: how much time does greece have left train quantify it for us. paul: there is no easy way of saying what it is. it depends on the behavior of people within greece, how they

treat liquidity. are they still taking money out of the banks? probably whether those withdrawals will be reduced even further, whether people start making trades are doing their own informal ious instead of using cash or how much cash they can take out from under their mattresses. there is a lot of unknowns here. there will come the point where banks do not have enough money and then they either need some form of recapitalization, some form of liquidity injection or the alternative is a winding down and that would involve horribly greece heading to the exit. -- probably greece heading to the exit. caroline: australia saying that a grexit is unlikely but other breaking news as well. interesting numbers out of marks & spencer's. for the first quarter, like for

like sales not doing so well as had been hoped. up 0.3%. they call it an excellent quarter. the market estimates were for a .5 increase. missing in terms of growth. on general merchandise not doing is badly. that is the clothing side of the business. it fall 0.4%. even though there is a decline on general merchandise it is not as bad as had been thought. food not outperforming as had been hoped by the market, by analysts. up 39% in terms of sales. they say there is 150 million pounds share buyback starting on july 8. let's look at a sauce -- assoos.

up 27%, slightly better than the 25% that had been hoped. the rest of the world doing up 2%. sales climbing toy percent for asos. the market had been expecting this. this is at the higher end of guidance. finally increasing their guidance, i think. we have the budget tomorrow. you are expecting a business friendly outlook. guest: it will give away inherent exchanges. top rate, i really do not know. it will be interesting to see how that works. the u.k. [inaudible] we have discussed austerity.

and so we talk about how much they have got. we're still borrowing $90 billion. caroline: still finding ways to cut the budget. guests: we can sit here and say there is wonderful growth back in the u.k. a lot of people make a big point of this being the first purely conservative budget. isn't there a danger -- we were talking about this early -- earlier. it can go too far now. the austerity targets are pretty ambitious. there is a divide when it comes to wealth in this country and he has got the mandate. guest: we're still going the 90 billion this year. that is the fifth year running.

we were borrowing even before the boom. that is the same argument that we are addicted to debt. we are borrowing -- we're not going for infrastructure or things that would -- we are financing current spending. that is not healthy. i will go to clegg's point. your children will pay tomorrow. we discussed that earlier. the americans did far better than we did by cutting expenditure. we have some floating interest rates, floating currency and we can do is we wish. that is one of the reasons we managed to manufacture a

recovery. we have flexibility all around. i would not get too carried away. we have another debt fueled housing boom. you had another housing boom it is funding people's appetite for more debt. so what do we have in the u.k.? another boom and bust. government spending is still happening. we're still borrowing nearly $90 billion this year. that is the truth. uncomfortable but there we are. caroline: great having you throughout the show. now, coming up. it is deadline date and a deal is yet to be done with iran over its nuclear program. we will speak to the former u.k.

ambassador to iran when we return. that is a conversation you will not want to miss. ♪

"countdowncaroline: welcome back. futures just opened. we are going to look at what we expect the dax to open it. the cac pretty much flat. it is a slightly better day. the euro stocks is up .3 of 1%. we saw much bigger gyrations in the market last week's of the referendum being announced. the referendum was completed and

the markets did not fall as much as was predicted last week. ryan: angela merkel has warned that time is running out for greece to save its place in the euro. as finance ministers gather in the aftermath of the no vote. they were urged toward working toward a constructive outcome. caroline: the slide in china's benchmark index deepened. shanghai composite hit its lowest level since march 20. more than two point $2 trillion have been wiped off the value of chinese stocks in less than a month. despite pledges to by $19.3 billion worth of shares and a

halt to an initial public offering. ryan: oil prices have stabilized after kurds biggest decline since february amid signs of today's deadline between -- for a nuclear deal between [inaudible] and iran. oil is traded at its lowest level as investors avoided risky assets and the deepening debt crisis in greece. who better to talk about the talks in iran and what is next in the geopolitical dimension for oil than elliott gotkine? he is in israel and he has been following the talks in vienna. elliottthere is a little bit of hope, no? elliott: it is deadline day but it feels more like groundhog day.

they seem to miss the deal. they have not met one of their own self-imposed deadlines so why should tonight's deadline be any different? as you point out there is some hope china's foreign minister sounding a optimistic note. john kerry is urging caution. mr. kerry: we have over the past few days 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. elliott: iran saying it should restart it does not get sanctions.

ryan: thank you. caroline: let's get more on what is to come or not to come on the nuclear talks. joining us now via skype. tucker's are some of the stumbling blocks at the moment. what do you think could be the key issue that would delay an agreement today? guest: the pace of sanctions relief is one problem. this is specific steps that iran is required to take. that could be another problem. also there is a bum raised by russia -- a problem raised by russia about the lifting of the arms embargo on iran. at what started -- stage that could take place. i expect u.s. and its negotiating partners are not so

keen on that. these are very long, very detailed, very complex issues and there could be others as well. it is great the negotiators are sounding optimistic. ryan: can the iranians, the world powers walk away from vienna without a deal? obviously it is a self-imposed deadline but the reason it exists is if they do not agree on something today, than by tomorrow i guess, then congress which is not too excited about a deal would have 60 days to scrutinize it as opposed to 30. just as judgment here. if we do not get a deal today, how much does that will up the prospect of ever getting one? guest: the fundamental interests of both sides in getting a deal will remain.

it could complicate the final steps in the negotiations because you would lose momentum and critics of the deal on both sides of the table might be able to get some additional punches on the negotiators. but the drive to fix this is based on the national interests of the united states on the regional security requirements of the region and on the indisputable requirement in iran that they settle this once and for all after 13 years of failed negotiations so far. they want that sanctions relief only. -- badly. even if there were a delay and the 60 day period had to kick in for congressional review, we would get agreement. ryan: give us a sense, on the

investment side, on the business side, i go to the open meetings in vienna and every day, all of the ceos, all the big oil companies are lined out outside of the iranian oil minister's hotel room and there is a procession to see him. everybody is waiting for the opportunity to get in. it is obviously a big deal. you leave it is not so simple that iran has a lot to do to get its own house in order before this boom can happen. tell us about that. guest: the committee working for two years on a new petroleum contract under which the buyback which the oil majors dislike intensely or investment in iran would be scrapped, and a new arrangement that is closer and more competitive with the arrangements which oil majors can get in other major oil provinces would be introduced. ryan: we will have to leave it

there. we will definitely have you back. my apologies. we have to go to a commercial break create you have to stay with us. you're watching bloomberg television and "countdown" will be right back. ♪

ryan: welcome back. it is 7:30 a.m. in london and 9:30 a.m. in london and -- athens and that is where people gather outside of the banks. you can see people queuing up there. banks in the country set to remain closed until at least thursday. that is after the government extended the closure of the banks. hopefully they will get a deal before -- that will allow the banks to open. you can see people continue to take your money out of the cash machines. which might cause greece to run out of money.

caroline: and keeps them on a tight leash. and a haircut in terms of a collateral being on the rise. let's check in on the rest of the things you need to know. german chancellor angela merkel has warned that time is running out for greece to save its place in the euro. leaders gather in brussels in the wake of the resounding no vote in sunday's referendum over a bailout. jack lew spoke to prime minister tsipras and the newly appointed finance minister on sunday. ryan: a flurry of measures to shore up the market failed. that is despite pledges from

state run financial firms to buy $19 billion worth of shares. caroline: axel springer is in talks and come out of the attempt to buy prosieben. it has a market value of 97 billion euros while axel springer is valued at $4.4 million -- .4 million euros -- 4.4 million euros. let's catch up on the news in asia. it was a down day in mainland china. anchor: the composite is down by

1%. peering back a little bit of those earlier losses. the hang seng taking on that contagion. it is down by . [inaudible] -- .4 of 1%. there was some positivity which was encouraging. the ak has closed up by one point -- nikkei has closed by 13%. reversing the falls despite the fall and iron ore. i did want to take you into some of those main players which are weighing on the shanghai composite. what we are seeing is buying in those stocks or the big companies. petro china was doing incredibly well earlier in the session after a very strong rally yesterday which helped boost the

overall shanghai composite to that 2.4% gain. china railway doing well, up by 10%. it is [inaudible] and a lot of the smaller cap stocks have been halted from trade to try to stem this route. caroline: thank you. we have looking like a slightly better day. 0.3% rise on the euro stocks as indicated why the futures market. that could be up zero point 4% in germany. -- 0.4%. ryan: money going into bonds across the board, yields coming down on the back of that just a little bit. not as apocalyptic on day two of

the drama as we might have thought. caroline: the ecb will continue on its quantitative easing. let's talk u.k.. we got some statements, marks & spencer's and asos. give us a sense of what is happening in marks & spencer. theiir clothing not as -- doing as well as had been hoped. guest: it has been so cool in may and june. the brighter sparks for them are their online business. both those, 38 percent. people were still buying and the food business which remained up little bit as well. and ahead of the market there. ryan: in terms of internet

retail it escapes the onslaught when sales go down in bricks and mortar. what are you saying there? guest: the other company of was up -- company was up 27%. the shopping impulses slightly different online. people are buying so much on mobile applications which is flipping through things on the train on the way home or elsewhere in than buying things. i think it is a different motivation from going to the shops on a warm day. caroline: are there concerns surrounding asos because there was a bit of a wobble and what do we expect for them going forward? guest: asos' sales remain good. they put on some additional

customers. they were saying we are reinvesting the extra profit into additional customer services. one of the things they are saying is they will -- you will get free returns. another cost they put on to their business so their operating margin of around 4% him a well before -- well below marks & spencer and much below the [indiscernible] caroline: how are people digesting the numbers in general is to mark -- in general? guest: the m&s, the clothing was not quite as bad, foot is not quite as good. those are bigger questions. people are buying more of their food but they are buying it in

the simple food stores. what are they going to do to get people back into their big mainline stores and buy clothing on a long-term basis? caroline: good to have you on as ever. meanwhile, european equities. ryan: trading in around 20 minutes time. let's look ahead to the market open with michael ingram. we appreciate you being here. one of your comments in your notes that come i i was -- caught my eye was your condemnation of the imf saying that the imf like it mortally wounded or has lost its ability with greece. there is so many protagonists in the story, tell us about that. guest: you have had success of

programs in greece that have failed and one could argue that a lot of the problems are being down to pour in fermentation. there is also very low doubt that this sort of fiscal austerity that greece is being asked to enact is ultimately self-defeating and much of this analysis has come from the imf itself. i was quite shocked in having finally come clean on the unsustainability of greece's debt. they switched all the blame to a government that had been in place for five months. that is rubbish. and the imf comes out of this looking good -- they are looking politically compromised and there is a steady drumbeat for fundamental reform within the organization. caroline: ecb politically

inspiring funding? that speeds up a situation. guest: the one institution is basically game over. it is -- they do not want to be the one delivering the coup de grace and that is -- various politicians will be sitting around tables today. it is difficult for the ecb to argue that greek banks are solvent in this particular situation. their exposure is absolutely awful. of course, the real economy at the moment continuing to deteriorate and falling. not looking good. ryan: we have not seen armageddon. nonetheless, this might be an

opportunity so how do you play this in the short term? michael: i am not in a rush to get in. i went underweight europe but i am glad. i think you see a lot of volatility and it is stirring up individual opportunities. it is premature to revisit those over weights and we have seen some capitulation in terms of the overweight europe in the last two or three days create the cynic in me says maybe i should think about getting back in. there is so much event risk out there in terms of what is going on in greece. i think the immediate prospect for it a durable deal is still looking extremely marginal. i think that is the vale of tear s we have two before picking anything off the floor. caroline: we will get more of your take as we walk into the

market open. coming up on "countdown." ryan: themr. tsipras is heading to brussels. more when we come back. ♪

caroline: welcome back. ryan: this is a 40 5 a.m. in paris. -- 8:45 a.m. in paris. caroline: verizon leaders and finance ministers gather in brussels in the resounding no vote in sunday's referendum. jack lew spoke to the prime minister and newly it -- the newly appointed finance minister

to urge them to work toward a constructive solution. ryan: a flurry of measures to save the market flurry -- failed. more than $3.2 billion has been [inaudible] caroline: and prosieben is in talks with axel springer. prosieben has market value of over 9.7 billion euros. ryan: greece may default as

early as this week according to s&p. michael ingram is still with us. we were going to talk about the market open but now we have this s&p headline. it always comes back to greece. let's talk about the s&p headline. what do you make of that? michael: i wrote in my notes overnight that i was drawn to the comments yesterday. given the current rate of withdrawal of deposits from greek banks and the current yearly regime that they would fit the run out of cash on friday. ryan: i have heard wednesday. i have heard next week area michael: there has been speculation that the ecb is crunching numbers. generally speaking greek

officials have been trying to call people's nerves in terms of saying deposits are safe. we are in days of running out of cash, that is real news. ryan: they kept the cap where it was but they changed the rules. michael: i think we are getting towards a grexit. we need to see tangible progress out of the eurozone leaders today. we are in a few days of collapse of the greek banking system. pretty much any package you will put into place is tantamount to rearranging deck chairs on the titanic. caroline: they are expecting a great debt default as soon as this week.

stocks rose today and borrowing costs are coming down in italy and spain. how have -- how has the institution prevent this sort of contagion? michael: i would not hang out the bunting just yet. the ecb and european nations have not been able to contain the situation in greece. we are where we are. the markets tended to take a constructive view on the events over the last few months. all along it was like, they will never form a stable government, yes they do. they are not really going to walk away from the troika, they have. it has -- we quite often see the market rally on good news or even the rumor that news and then very slow to get those gains back. caroline: what about qe? michael: everyone is talking

about the backstops and the political will is to keep the eurozone together. at the end of the day we're testing the limits against economic reality. ryan: it feels like the s&p is behind the curve in the sense that investors have baked in a lot of what is going on in greece, what they are saying might happen. caroline: and the small amount of privately held that out there. michael: which is why i am cautious. going back to the -- how relaxed markets are, i look at other countries and you see a little bit of [indiscernible] in october last year which is not of itself catastrophic. there is the steady drip of

caustic almost feel to the market which has been undermining asset prices. we have come down quite a long ways in european equities over the last three months. you have to wonder if there is not more of that. caroline: [inaudible] always great to have you on the show. ryan: let's get to hans nichols. walker's what -- through what we can expect in brussels. there is a lot going on. hans: the french are calling to have a conversation about the overall debt reduction. we heard from the austrian finance minister at the eu did not have to have a debt restructuring. this is what all the leaders are waiting for. they want to see some concrete proposals that could potentially hurt. we are also seeing this s&p highlight -- headlined that

greece could default this in his this week what did he mean by default? are they talking in terms of the technical definition and will that trigger this edx or credit default swaps. we know that greece miss their payment to the imf. that is not a default. you are all -- only in arrears. greece is having hard time meeting their obligations. the banks are not going to be open through wednesday and thursday. the greek stock market also likely to remain closed and you have ministers that will be arriving in a couple of hours who want to see something that is -- shows that these are painful decisions on greece's part. there has been nothing up to this point that shows the government wants to accept any sort of painful decisions and discussions. in some ways where almost where we were in mid-february before they signed out -- onto the extension.

it does not look like they will get a bridge loan or extension coming out of these meetings. ryan: thank you very much. caroline: the market open, we could see some gains on the -- we could see some gains. jonathan: the thing to watch, another summit with eurozone finance listers and eurozone leaders. banks were supposed to open in greece today. that is what officials told us that the people of greece voted no and the banks would be open. they are not scheduled to open until tomorrow and i am not sure who many will think that will happen. five months of this we have had and not much has changed very at the question to ask is whether the referendum over the weekend and the chains of her snail, the fresh finance minister moves the dials and makes a difference at all.

that is that situation and we will talk about that throughout the show. the other thing we should be talking about is china. the shanghai rout continues. the biggest since the 1990's. despite their best efforts they are struggling. they suspended ipos, funds have got together to buy phones -- funds and chinese stocks continue to fall. it is a lesson for what might happen in europe while we are comfortable sitting here thinking the ecb has got our back. and look for crude. the worst week in a number of months this last week and then a further fall yesterday. oil flipping under the greek radar. the market is really in focus. ryan: i will be talking with oil -- about you withwith you about oil

on your show. oil has been sub-$60 a barrel. >> how much that has been fed into risk aversion but also from china. we have $3.2 trillion coming out over the last month but in valuations are 59 times earnings. huge valuations some way to go. ryan: one thing to watch is iran. also greece and china. that is a new thing on the oil front. caroline: that is it for us. stay with bloomberg. "on the move" next. ♪

jonathan: good morning and welcome to "on the move." i am jonathan ferro here in the city of london. just moments away from the european market open. the clock ticks. greek banks stay close. greece given hours to submit a proposal ahead of an emergency summit in brussels. shanghai fell off. china tumbles to its lowest level since march. the three train dollars stock market rally. german media merger. axel springer is said to be in talks about a deal that could be worth over $14 billion.

that is what we are watching ahead of the european market open. ftse 100 futures up by six points. dax by about 60 points. caroline hyde. caroline: it looks like it is going to be slightly less painful day. we are perfectly flat on the cac 40. we are expecting ftse 100. jonathan, york and be all of that -- jonathan, you are going to be all over that. it is about greece. yesterday it was a flurry of phone calls between france and the ecb. the euro finance ministers kicked things off midday in brussels. the leaders, they will gather later. it will be coming at 6:00 p.m. cet.