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. we are opening higher on the

equity side. one asset class to be looking for is oil. iran talk continues in the anna -- in vienna. not likely to meet the deadline tonight. will they get some sort of deal? we saw the route over the past few days. here we have it, down 52.90. it is trading slightly. we are seeing settles in the oil price. zero, pretty much south. up by half percent yesterday. a little bit of concern about what is to be done with the ecb and ela.

will they give more funding to the greek banks eventually. more haircuts in can -- more haircuts to collateral. greek markets are rising. down in germany. a slight change. this is yesterday's close. we are not updating. this is yesterday's news. today, we are seeing more risk appetite in terms of debt market. we are expecting some significant moves. people saying axel springer, owner of numerous newspapers in germany, could combine. -- remember 10 years ago? it was squashed by regulators. the german media companies

re-familiarizing themselves with potential deals. marks & spencer up by 1%. general merchandise, we are seeing falls once again. not as bad as expected. it seems mark bolin saying it has been an excellent quarter. jonathan: it is flat open here in london. for tens of 1%. let us go to hong kong for the moves open in asia. juliette saly is standing by. juliette: we saw chinese stocks the main shanghai composite fall for the fourth session in the past five. one that -- down by 1.3%. we saw those big cap companies lifting the share market.

small stock laying on the overall shanghai market. we had the china small-cap index falling by its daily limit. state bank companies doing well up around 10%. some of these smaller companies coming under pressure. that contagion flowing over into hong kong. extending that rout yesterday. down 3.2% yesterday. the hang seng down today. elsewhere, a much brighter picture. we have the 06 200 and australia closing higher. reversing a lot of those falls. that was despite a tumble coming through in the oil price. we saw some good coming through through the minors. some of the smaller minors

certainly not impacting the overall move. the nikkei up by 1.3%. -- down by 7.1%. wade by health care stocks. jonathan: juliette saly joining us from over in hong kong. alexis tsipras fishing desk facing rusher -- facing pressure. joker says he will call on tsipras. the greeks walking out of talks was a serious error. angela merkel warned greece is running out of time. this is the ecb type conditions for greek banks. let us get the latest. paul gordon is standing by. on's nichols is in brussels that summit. guy johnson is in brussels. guy, i want to start with you. we thought the banks would be open today. they are not. the big question is what will it

take to get the banks act soon as possible? guy: it would take a deal or enough progress towards a deal for mr. draghi who will be in that summit. paul will talk about that in more detail. the politics front and center. the banking system writing to a halt. we do not see any progress yet on the opening of the banking system. the banking system could run out of money. it is getting down to the wire now. we've had many crucial meetings. i feel this one is different. i think mr. tsipras has to come up with something. he is a new finance minister in place. yes, there is a bit more political cohesion. i do not think that is enough. he needs to find a way of gaining the trust of his euro creditors. if he cannot do that over the

next 24 hours, i do not know what is going to happen with the banks. i cannot see them opening over the next few days. that is the story here in athens. tom: paul, the ecb -- jonathan: the ecb moving things on the market. how important was that move? paul: it keeps the banks on the line. what ecb has done is continue allow free banks to access liquidity without increasing. making it harder for them to get it increasing discounts on the collateral. keeping them alive. that gives politicians a chance to meet today to see where the ground lies. coming out with statements to help the ecb decide where to go next. if things do not go well today that is going to be the toughest decision yet. jonathan: hans, to bring you win, you heard ball -- to bring

you in, you heard paul. as we head into this meeting who has the leverage right now? that referendum not going down well with the creditors side of the table. on the other side, do we get a more feisty or tsipras -- and more feisty tsipras? hans: there is no indication that creditors feel that they have leverage. they want mr. tsipras to come with them with a credible proposal. jean-claude juncker speaking in brussels right now. you can hear his frustration. he was always an advocate for tsipras. always trying to frontload this process. he said it was an error to hold that referendum. the old offer is no longer value -- is no longer viable.

that is a problem because mr. juncker is someone you want to have on your side. he is expressing frustration. it is across europe. you saw in germany. most recently, a public opinion poll in france shows 50% of respondents want to see greece leave the euro. 49% of them to see them stay in. approaching the numbers we have seen in germany. they have been in the mid 50's. nothing north of 60. this idea that greece will be better off outside of the eurozone. more poorly, europe will be better off without greece -- more importantly, europe will be better off without greece. jonathan: -- talk to me about the substance and that's about the substance of the negotiation. do you think the substance has

changed? is a different? on skull i believe -- hans: i believe the timing is important. the banking system -- if you cannot get a deal, the banking system is going to represent a problem. in needs to open again. it needs to get this economy functioning again. we have replaced mr. varoufakis. let me make it clear. both of these guys are on the same page when it comes to debt renegotiation. they may differ in style. he may be easier to deal with around the table but he is not the man that is going to give up easily. he has been running negotiations for quite some time now. you are not going to see a big shift in terms of the position. unless mr. tsipras decides that

is going to the case. he needs to figure out a way of convincing his peers that he can be trusted and a deal can be done and that deal will be carried out. i do not see any big shift. they are very much hardening their line. mr. tsipras has to change. that is not a recipe at this point in time. with the banks they are getting close to the edge. maybe then and maybe -- maybe everyone would move again. i cannot see everyone is going to have a meeting of the minds again. jonathan: guy johnson in athens, think you very much. we are joined by phil blain.

how close are we to an accident in the greek financial system? phil: the markets are judging that an interesting way. we do not see panic, we saw stable markets. markets cannot trade politics. you cannot ever guess what is going to happen. they are assuming we are going to avoid some kind of catastrophe. what do we mean? intestacy would be a messy, greek default. it could happen as early as next week. it would mean a messy default, plus inevitable exit. markets are opening we get the solution. it may be one, even though he keeps greece in the euro. i think it is more likely that we get greece-assisted out of the euro. a restructuring, with greece reestablished. the market is betting that that could attend -- that could

potentially happy. i going to give juncker some advice. he should listen to the bee gees. throwaway conventionality. greece is the word. the democratic decision made by the greece was to do something different. they do not vote for a grexit. that is likely what they are going to get. he needs to step away and allow that to happen. jonathan: bee gees lyrics. i never saw that one coming. the markets the open decks we are going to have a deal. that is very different from the market thinks the ecb has our back. bill: the art to very -- there are two very different scenarios. the more likely one is one that sees a more managed process.

what will be bad is a deal that would put us back into discussion for months and months with a temporary bailout. what you're going to do is hold europe and turn around and say who is running the show? is it ourselves? brussels? that is a big issue that is beginning to be acknowledged now. european politicians they are now beginning to make noises. they are beginning to say hang on, why is this thing being run away? jonathan: euro stocks ended the day down. the much everybody turning around and saying do not worry it is not 2011. someone pointed out to me look at the week that the lehman brothers went out. the back half of that week, you

see a rally. when contagious test when contagion close-out, it happens progressively. -- when contagion rolls out, it happens progressively. bill: the markets are in a positive move that's a positive mood about europe. what happens if this gets messy -- a positive mood about europe. what happens if this gets messy? greece is going to struggle anyway. it is going to be the ecb that is going to have to go for recapitalization. it is going to have to be the fear of god that puts -- we have to avoid is another round of contagion. i am certain we will see an agreement. if we do not, we are into a whole new market. and it will be panic. sun if the banks -- jonathan: if

the banks need to be recapitalized, will the three are they going to go for? bill: we're going to see a mix. i think a bail and that's a bail in is going to be a real -- a bail and is going to be a real possibility. we are going to see other support pumped into the bank which means easing ela. jonathan: coming up, the china selloff worsens. almost half of the stocks on the shanghai comp said have fallen. later, what do some of the biggest businesses in the business that's what do some of the biggest is is have to say about greece? -- what do some of the biggest businesses have to say about greece?

good morning. ♪

jonathan: good morning and welcome back to "on the move." we are 19 minutes into the trading session. let us bring you up to speed. german chancellor angela merkel says time is running out for greece. greek banks remain closed and the ecb added pressure by making

it more difficult for investors to access loans. leaders hold their summit at 5:00 p.m. trades -- brent trades starting high this morning after falling yesterday. a deadline for a nuclear deal between iran and the west may be missed. german television group is said to be an merger talks with newspaper publisher, axel springer. discussions are still at an early stage. stocks are trading high this morning. another day of red in the chinese stock market. most half of the stocks listed on the shanghai composite -- checking the index down to its lowest level since march. this is despite the government's effort. we're joined by tom woolley of

-- tom, you have been doing comparisons between now versus 2009. is there a lesson? tom: i think the lesson is more to do with what is going on in the economy. 2015 like 2009 is a moment of weakness for china's economy. i think officially, it looks like the drive is the weakness. there is weakness and export. there is weakness in the real estate sector. dumb believe the surface -- down believe the circui beneath the surface -- china's economy recovered. in 2015, the drivers of weakness are more structural.

it is oversupply in the real estate sector. the concern is this. when in 2009, we got a v-shaped recovery. in 2015, the best case scenario is a stabilization and growth. the red cross for the equity market -- the read across is the equity market. the high violation for china stocks is not there. is not going to be there, looking to months -- looking two months into the future. jonathan: a pretty clear indication that the stability is huge important -- is of huge importance. how far of a willing to go to preserve it? -- how far are they willing to go to preserve it? tom: the concern for the government is the falling stock market is bad news for investors. it is bad news for the real economy. with the market falling

consumer confidence is going to take a hit. equity fundraising is going to take a hit. the concern is the stabilization we saw in the real economy might not persist into the third. that is why china's government has been so aggressive in trying to stabilize the market. so far, they have paid a fairly heavy price and marketing intervention. they have not got much reward in terms of stabilization. jonathan: asia economist thank you so much for joining us. bill blaine. here's a market that is selling off aggressively. here's a group of officials that are trying to stabilize it. guess what? it is not working. is there a lesson for europe as we go into a big parent of

volatility? bill: that is exactly what is going on. you have an economy that is going into flatlining. you have the added pain of a declining market. you've also got a populous who had that pressure. they can put their money into the stock market and see it and that is gone. doesn't that have parallels for europe? i am not sure -- does that have parallels for europe? i am not sure. it does look like it is slowing down getting old, before it gets rich. it is exhibiting all the problems that western stock markets have exhibited. people think there is easy money to be made, piling in and getting

caught as the last buyer when the market collapses. when we talked about this last it was still on the way up. we sat here and said, this is a bubble. my mailbag was never so full of people telling me how wrong i was. what a complete idiot i am thinking the chinese government would not step in and restore the market. market watchers saying there is it the power to keep this going. it has not happened. it does not look like happening despite of a margin released. despite making selling into a state crime. jonathan: blackrock joined you, morgan stanley, all of this was calling it a bubble. what happened in china my point is about leadership. they're losing control and

they're going to do something about it. i look at your, the only leadership that seems to be there is from the ecb. that is still a problem, is it not? bill: this is a worrying parallel. the problem europe has is who is going to step up to lead the necessary cooperative negotiations to get her healthy? there is no one that six to mind? is it merkel? it is not going to be junk or -- it is not convey juncker. -- it is not going to be juncker. it is not mariota draghi's job. that is a big issue. jonathan: a big thanks to bill blaine. the to come, we head back out to athens.

we will speak to an economist who thinks if the ecb raises ela, the central bank would be a bank run. we will be back after a short break. ♪

jonathan: good morning and welcome back to bloomberg tv. at european headquarters right here in the city of london. 30 minutes past the hour. let's get you up to date to wear stocks are trading here it -- trading. where up 2/10 of 1%. where up 30 points. yesterday's brutal loss of about 2.2%. we are coming back from the moves yesterday. the picture in the bond market. we reverse those losses. yields down.

2.33%. a reversal on the losses from yesterday. brent a reversal of those monster losses yesterday. yesterday, down 6%. the biggest one-day loss and five much. the oil market starting to make some noise again. the commodity markets a weaker euro the story this morning. caroline hyde. caroline: let's have a look at m&a this morning. it is driving these german stocks higher. it looks like the activity is going to be keep going that's is going to keep going. looking at a merger. currently driving though stocks up. that is the publishing arm. meanwhile, all about television. rpl is one of its key television

stations. they could merge together to become a bigger unit. in total -- this is deja vu. continues ago they were anticipating a deal -- 10 years ago, they were anticipating a deal. the regulator stepped in and said no on a competition basis. will competition be an issue once again? they are in very early stage talk. on the downside, we're looking at oil. up by almost 8% this morning. they talked about a restructuring. 6000 jobs to go. they are reducing. they used really incredible terms. customers have been relentless in slashing their own expenses. they are not sitting and waiting

for oil prices to go up. that is the word from the chief executive. they have seen -- we have seen a slight recovery. crude prices are hurting the areas. 6000 jobs to go. rocco caroline hyde, thank you very much. -- jonathan: caroline hyde, thank you very much. -- one of the many bonuses over the last 24 -- many voices over the last 24 hours. >> it appears we are in the eye of the hurricane. i do not believe the situation is calm. ultimately, it comes down over the next few weeks to whether the greek debt and standoff whether or not the greeks want a significant restructure of their debt. >> probably to exit the eu is

the best option, because if they devolve on everything, they will be basically debt free. >> by voting no, 61% of the voters in greece made it clear that they want more understanding. they want to be heard. jonathan: lettuce head back out to athens. -- let us head back out to athens. guy over to you. guy: it does not feel like that. megan greene is joining us. morning. we have a referendum they gives mr. tsipras a big political mandate. where does the change, in these negotiations? megan: i do not think much change will come from swapping out the finance ministers.

they are very similar ideology glee -- ideology gically. it means he might be able to put a temporary deal to parliament here. internationally, the referendum has not served greece well. mr. tsipras promised greece would have a stronger negotiating position. i think his position has probably weekend. guy: that is far away. megan: if you want a deal with greece, the only guy you can deal with. the rest of the opposition was decimated. guy: let us look at this from a financial point of view. the banks still not open. they will not open any time soon. how big of a problem is that? can they keep going with this?

a very weird system we have at the moment. from a company point of view, it means we just did not operate. megan go it is undermining the greek economy. -- megan: it is undermining the greek economy. banks have 150 million euros. the greeks are withdrawing 300 million euros a day. if they can get to july 20 without running out of cash but that is a real hard deadline for greece when they have to repay 300 billion euros to the ecb. guy: the greek banking sector is on the edge right now. how big a catalyst is that? if you're sitting at the negotiation table is that the deadline?

is the payment the deadline? what is it that is going to cause a shift? megan: it is hard to gauge. it is clear that this deadline is a hard deadline. if greece and the exiting, it will be because of the banks. it will be because the ecb demands resolution plans. the greek government doesn't have the euros to provide that. guy: would you see this happening? megan: right before the 20th the ecb will look for political coverage to do this. they will ask other countries to guarantee the greek debt. the other countries will say no thank you. the ecb will have the political cover to pull the plug on greece. it is not the ecb's job to develop policies to keep greece in. guy: angela merkel, is the

breakup going to happen on her watch? how big a problem is that for her politically? megan cauchy is cognizant that she doesn't -- megan: she is cognizant that she does not want it to happen on her watch. the rest of her government is that set against it. the past, she has a history of the consolidating political capital without ever using it. it is the only way a deal could be made with the greek government. guy: what is the problem with that relief? megan: the debt relief equals a debt down. germans would have to admit they lost that money. america is ok with their relief as long as greece -- merkel has

a track record of responsibility. she does not want to offer debt relief. greece is not the only country in the eurozone with too much debt. guy: let us talk about that. when you look at the eurozone at the moment, still holding together. greece goes, and what is the fragmentation story from their? megan: immediately, the reaction will be muted. i think a grexit would be a lean and type of event. -- would be a lean in event. spain and italy will consider leaving the eurozone and benefiting from a huge violation of the currency. -- a huge devaluation of their currency.

guy: the markets seem incredibly relaxed. you just painted a picture that is devastating. megan: i think the markets are externally short. most policymakers are relatively sanguine about the invocations of a grexit. guy: megan greene, heading home. i'm sure we will be paying attention to what is happening here in greece. john, 20 more still to come. jonathan: i'm sure she will be back. guy johnson, joining us live from athens. the pressure points. berkeley's saying the ecb really putting a pressure on a deal to happen that's putting pressure on a deal to happen in the next couple of days. the crude moves in oil. down by 6%. the biggest one-day loss in five

months. brent is up by 1%. the selloff in the commodity sector continuing as far as -- we're going to break down the move after the short break. ♪ hello

jonathan: good morning and welcome back to bloomberg tv. i am jonathan ferro. where 45 minutes into the

session here. -- we are 45 minutes into the session here. let us get you up to speed on bloomberg's top story. angela merkel says time is running out for greece. the comment comes as greek banks remain closed. the ecb adding pressure by making it more difficult for lenders to accept emergency -- to accept emergency loans. leaders hope their summit at 5:00 p.m. equities in china sold up heavily today with sifting stocks start -- 16 stocks falling for everyone that rose. the government tries to stabilize the market. estrella left its key interest rate unchanged -- australia left its key interest rate unchanged. that message continues to be rolled out. in the commodity market, it is all about oil. slightly higher this morning

after falling yesterday. brent trading at $57 a barrel. ryan, the drop yesterday reminiscent of the early moves in 2015. ryan: we seen it twice and before -- we have seen it twice before. it seems like every time we are talking about the movements in the price of oil, we are talking about if there is a glut or not a glut. we have a note that is come out from goldman sachs. they are talking about how crude production growth is rising faster than demand growth. in addition, we have a note that says stockpiles and the united states will remain high. there was a breakout last week showing an uptick in the number of rigs and you'd the united states -- rigs in the united states. in addition to that, one of the newer features concerns about

demand not just with degrees -- not just with greece, but also china. one of the biggest consumers of oil out there. an instinct picture. the question is is this just a temporary blip? are we going to move out of his range? jonathan: playing out across commodities. that is going to be theme. another theme is what happens with iran. we have been waiting for this deal. looks like we are going to wait longer. how big of an impact will that have on the oil market? ryan: it is like a to change the oil market anytime soon. there are 19 million barrels of crude, if the sections were to come to an end. we are talking months or years

before we see any fundamental changes in the oil market. what are the reasons people say we saw that slight recovery in the price of oil is because the iranians started saying we will not get a deal after all. at the end of the day, there is just a few dollars here or there. the big change is if we get a deal that would definitely bring the price down a bit. fundamentally, it would change the game in the long run. we're talking two years out. jonathan: thank you very much. let us which it up and talk about the top corporate story. combined with axel springer. that is a tie up. let's get the latest from aaron chris phil. what are these two companies doing getting together? a tv, a newspaper.

and why now? aaron: it comes down to digital. axel springer has been pushing hard by buying athletic tracking devices. expanding in digital as well because where is that they usually compete against each other, now it is all about google and youtube. the idea is you get axel springer who runs the biggest tabloid in germany, you put those guys together they can take on the likes of google and youtube. jonathan: a follow-up question is when you talk about m&a, talk to me about that on this deal. aaron: they tried this 10 years ago. axel springer try to buy posing. can they do it? will try to bring the argument

we are not competing against each other anymore. we are competing against americans. whether they buy that argument, remains to be seen. guy: the bottom line is we have to get bigger. talk about to me about m&a and how that fits in. erica if you see the m&a market at the moment, we are on track to be busier than 2007. you know m&a is booming when german companies are doing deals. there are more conservative and take their time. it always starts in the u.s. goes to the u.k. and then goes to germany. when you see germany preparing deals, you know m&a is really booming. dr. -- jonathan: defensive m&a. aaron cohen -- erin: we are

seeing a bit of the lemming effect. the way investors are reacting. usually you see that targets companies stocks go through the roof. yet seen a lot of announcements where the bias shares go through the roof. axel springer, the shares are rocking right now. this one encourages talk. it encourages management to keep pursuing an agreement. jonathan: aaron critchfield joining us this morning. up next, we'll take you through every thing you need to know. a couple of big meetings happening in brussels once again. we are back in two. ♪

jonathan: good morning and welcome back to bloomberg tv. i am jonathan ferro, live from the city of london. we are bouncing back and mainland europe after yesterday's losses. most in our into the trading session. this is what we are watching. all attention on brussels as euro area officials rather to meet on greece. financial ministers meet at noon u.k. time. as for the data, here's what is coming up at 9:30, will get manufacturing production out of

the u.k.. as we head out mark barton joins us now. he'll be watching the markets. what are you watching? mark: the index, the eurozone blue-chip. it fell yesterday by 2.2%. lowest since february. not as bad as the prior monday. it is almost 10% below its seven-year high. that is the high, april 13, since then, it has fallen by 11.9%. the correction happened on friday. what is instinct, half of the 18 western european markets have fallen 10% or more from the 2015 high. italy, spain and france were the latest benchmarks to achieve

that distinction yesterday. tsipras called the referendum. let us have a look at the bond market. one big move yesterday. there was definitely not a panic yesterday after the result of the greek referendum. german yields fell to the lowest levels since the end of june. a tie in and spanish yields -- italian and spanish yields did rise. they both fell by 14 and 16 basis points. yesterday it grows. to the highest since november of 2012. not as big a arise.

i want to finish with the euro after falling yesterday for a second day. it is declined today by .5%. we are in steam mode. we are awaiting. there is not been a massive reaction from the greek referendum results. jonathan: that is it for me. the pulses coming up next. they will be asked -- they will be speaking with former a tie in prime minister -- former italian prime minister. the dax is higher by 22 points. the shanghai comp is it is the big story. the shanghai comp drops another

1.3%. that is it for me. greece is the word for the rest of the morning. you can follow me on twitter. esta look for the rest of your day. -- best of luck for the rest of your day. ♪

mark: standard & poor's says greece may miss a debt payment as early as this week. in claims the situation is leading to a return of economic depression. that comes of that that cams as -- that comes as angela merkel warns of greece. shanghai selloff. china's -- as foreign investors head for the exit. ♪