a very warm welcome. this is worldwide exchange. i'm wilfred frost. >> i'm seema mody. here are your headlines from around the world. >> european equityies extend the rally. the ecb meanwhile maintains support for athens by raising the emergency funding to greek banks for the second day in a row. >> but stark divisions remain between athens and it's creditors. german chancellor angela merkel warns they'll have to accept the terms of the bailout. >> translator: there's a lot of work that needs to be done and

we're running out of time and therefore we have to concentrate on this worth. >> out of recession. france's manufacturing activity expands for the first time since april while germany shows recovery. >> another volatile day for chinese equities with a linger contraction for manufacturing despite a small up tick in activity but the main markets recover some of friday's sell off. >> joining us now is chris williamson. we have got come points highercomposite coming in at 54.1. the services pmi at 54.4 against expectation of 52.2.

nice beat there for the numbers. growing at a faster rate suggesting it will expand between april and june. the euro has been rising over the last couple of months. the sector expanded for the first time since april 2014 helping increase the pace of the broader pick up in the private sector business activity. you can see the euro holding ground here. slightly lower on the day. >> >> that's not in reaction to the pmis which are much stronger than expected. a funding currency and offsetting the gains in european equities yesterday and we'll talk more about that as we go through the show. first of all let's get reaction to these pmis. chris, good morning to you. germany, france particularly strong. >> yes, especially france.

a really good number there. signs of life. france is growing quite a nice rate now and largely domestically driven which is good. this is something to do with the ecb stimulus as boosted moral there. so we should get another quarter of growth after that reasonable number we saw in the first quarter. >> if we look at the euro zone numbers as a whole. where's the offsetting weakness? >> so the rest of the region saw a decelleration for the second month running. more to the point there was a very strong up surge earlier in the spring and maybe pay back from that. but when you look at the second quarter as a whole you have

business activity and employment growth everywhere outside in front of germany. growing the fastest rate since mid 2007. this is a good swelling of growth. >> i just wonder given the various meetings could the heightened focus on greece threaten the economic recovery as they put off their own structural reform and focus on greece's financial state. >> absolutely. this is the danger. everything is focussing on such a small part of the euro zone at the moment that policy making is being sidetracked and we obviously -- they can't lose the bigger picture but they're still very much a big way to go in euro zone's overall recovery and what we're seeing here certainly in these numbers is that some signs that businesses are getting more worried about greece. business expectations fell to a six month low. an increasing number of companies saying we're worried

about the future. holding off on our spending and hiring to some extend and this is coming through. but the policy angle as well we have to be mindful of. >> can we touch on where the euro is. we're much stronger than we were back in marchand we've had a good couple of months worth of data. does that suggest this level where we are at the moment despite it rallying that the economy can continue to grow in europe even though we're a bit stronger. >> absolutely yes. the euro is still supportive of growth. it should maintain the recovery picture at this level. whether the euro zone continues to recover and whether the euro zone remains this level is of course largely in the hands of greece and italy. >> i want to touch on germany. manufacturing makes up 2-thirds of its economy. we're seeing a better than expected number out of germany but there's still the lingering uncertainty around russia. >> absolutely. the german numbers are okay but they're not -- there's nothing

amazing happening at germany in the moment in terms of growth. you're looking at gdp growth rate around 0.3% given the amount of stimulus and level of the euro you'd think there would be doing better. there's concerned over russia and sanction concerns over greece but also what we're seeing signs of is that manufacture in other countries are making roads into german producers bisby being more competitive and aggressive in their pricing. >> chris sticks with us here on worldwide exchange. but now let's get a look at how european stocks are performing. >> let's have a look at european markets. extraordinarily strong day yesterday with the likes of germany and france up over 3%. ood strong day today. we have the stoxx 600 up 0.9% and we still haven't had any real resolution on the greek saga. the rally yesterday and today highlights how much of the

recent market sell off had come around greece. a little bit has seen a big rally. continental europe has been up very strongly which is highlighted right here at the end of the one month charter. that rally yesterday and today. let's move on and look at the individuals and the ftse 100 was up 1.5% yesterday which was small relative to the rest. it's up 0.15. germany and france also off the back of the strong pmis up the best part of a percent. athens continuing to rally. off 3% today. we've seen the bond yields just rally a little bit. yield is down 2.08 on italy and we've seen the german bond markets the yields tick up just a little bit as people have taken a little bit of profits there having gone into the safe

haven of germany. last weeks were at 0.9%. u.s. 2.37. range bound between 2.3 and 2.4. it's seen a little bit of an increase. perhaps easing greece con serns might see a rate hike earlier. the euro selling off pretty sharply so even though we had positivity about greece the euro sold off because it's seen as a funding currency still and thus positivity allows more borrowing to pile into equities. that's one of the reasons we see highlighted this morning. the euro 1125 at the moment. >> markets continue to rally on the prospect of a greek deal. behind the scenes european policy makers are working to come up to a final agreement ahead of an eu summit on thursday. euro zone finance ministers will

discuss the latest proposals. but the divisions between both sides are clear. >> our criteria is financial viability, sustainable debt and strong loaded growth package. we use a common phrase on these equations. the ball is in the court of the european leadership. >> it is still short of everything that should be expected. short on time and low on work. >> it looks difficult to pass. this after a warning that the greek parliament would have to accept the bailout terms first and foremost. steve, i suppose the markets rallying regardless of the fact that we still haven't got a deal. >> yeah, we haven't got a deal. looks like more likely than not we'll get a deal but i spoke to

them this morning. doesn't like the deal. a lot of people don't like the deal. i'm not sure it's the right deal. let's talk about the economics on the table so far. we're joined by a professor at athens university. every poll situation i have spoken to and every expert says not a good deal for creditors or greece. is it a good deal in anyway shape, or form? >> the main problem already since september and after the elections in january was this huge uncertainty that was increasing by the week. so you had to have a deal otherwise the economy would just collapse. and in some ways it had already collapsed. a deal is much better than no

deal. second thing is there was a diminishing by the week trust between the creditors and the greek government. so given that the deal had to have certain assurances. so it had to look more into the physical side of things. that is unfortunate because what the deal should have done -- and that is what should happen in the longer run is that to put two sides that they're going to support growth together on the table. on one hand you have to have more serious treatment about this mountain of debt sitting on top of the greek government and the greek economy. that's one thing. but you have to do this together with deepening and really implementing the structural reforms that are so badly needed for the greek economy and the public administration. >> so let's break it down a little bit. is there a growth agenda as far as you can see it?

he says it's an agenda for growth. everyone else can't see where the growth is going to come from if you're going to tax corporations and the private sector up to 29%, they don't think that's incentive for growth. >> right. first let me say the forecast we had for 2015 was that the economy could grow by close to 3% of gdp and now the revision is that this is probably going to be at zero. so growth for this year is gone. that's bad. now looking forward there is something good and something bad in this agreement if we're going to have an agreement with what has been already described. the bad thing is what you already mentioned. it's basically that we're taxing again income. we're taxing again corporations and we're doing in a way that makes the whole environment fluid. you're also making a lot of taxation active from the start

of the year but there's one positive thing to be said which is with this agreement the uncertainty will be diminished very significantly and there's going to be a very large spectrum in politics that now is going to be in agreement with europe. >> okay. has there been a deal which puts away that uncertainty? which puts away the distress between the creditors and greece as well? i still see the ela provisions going up. i know you don't want to specifically talk about capital controls but the northern european creditors don't like the idea of pumping more and more money in in terms of liquidity at a time when greek citizens are pulling out money from their banks at a record amount. >> yes but the ecb is the lender of last resort and it is still the central bank for greece as long as greece in the euro zone. so the ecb has to do their job. at the same time politicians and

government versus to do their job as well. i would not like to mix the two. they have done the great job to preserve stability in the banking system in greece. now it's the job of the greek politicians but european politicians to put on the table a growth agenda and for that they have to be very clear that all of these threats that you know, next monday is going to be a catastrophy has to go out the window. 2014 was good but still investment was only slightly above 11% of gdp. when in 2008 before the crisis it was 25% of gdp. the greek economy has the grow. >> you mention debt and debt relief which will have to be part of the next deal as well. so far he hasn't got any form of confirmation that debt relief will be on the agenda at all.

does this country need a more realistic debt mile in orderpile in order to move forward? i.e. they need creditors to reduce the debt rather than changing the terms on the debt. >> debt is a problem for the whole of europe and the euro zone and it becomes increasingly much of a problem because of the very low inflation. for greece in particular you do need a plan that could push payments back. effectively what it could do is interest rates now are fairly low. we should lock them into the future so we don't have the uncertainty that in ten years the rates go so high up. >> there in lies the problem. i have to leave it there. we've been told to wrap but thank you very much for your

time today the foundation for director and economical research. as the markets get more and more excited about this deal people i'm speaking to are getting less and less excited. they're concerned about the debt and the growth and political instability. back to you. >> steve, thank you very much. greek banks continue to rally. national bank up 4.7% and opeap up 3.7%. greek yields are similarly moving in a risk on direction the ten year at 10.78%. it did hit 10.6 moments ago. two year at 23.6 so we continue to see increased optimism toward

a greek deal being completed despite the fact there's still a long way to go. >> coming up p. diddy rapped. he is arrested on ucla campus for alleged assault. plus should blackberry ditch the blackberry? how can the smartphone maker connect with investors and ben bernake puts in his 2 cents on the $10 bill. find out his thoughts later on the show. where you also find her. ♪ a romantic fumble at this romantic chateau ... leads to these fine humans. who you take to this eco-lodge ... to get seriously close to nature. then you check in with her at this tropical paradise. before soaring over this castle resort with your father-in-law. who finally seems to like you.

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>> clawing back from a 5% sell off earlier in the session. up 2.2% by the end of the trade. sri has an update on asia trade for us. >> that was really the highlight in the market activity today. we saw some very very choppy moves in mainland china equities at one point down by well over 4% but it seemed to make evaluations that much more compelling and here we stand.

retail investors participation in this market. high volatility is the norm but the sense i'm getting is the medium term it's going to favor shares. all in all a strong session so the markets like elsewhere, this part of the world, are pricing in a favorable outcome to the greek debt talks. that picture could change of course if these new reform proposals don't cut it with the creditors. it could give rise to more volatility in these markets as well. back to you now. >> thank you very much. >> chinese manufacturing activity remained in contraction territory for the first straight month in june. flash pmi at 49.6 ahead of forecasts. let's learn a little more with chris. this pmi number not to write

home about. the data is disappointing when you look at imports, inflation, the lack of growth. when do we see the unconventional policy work? >> this is a big question. these numbers are continuing to signal that if anything there's just a chinese economy that's trending along the same old slow growth path. there was some sign of life and output stabilizing and then look at the unemployment numbers. now that's the one that's going to start worrying the policy makers. they put up with weak gdp growth but they don't want to see that feeding through to higher unemployment. so this is the one that's going to make them try to think hard about what they can do there's

no demand for the loans so they'll have to come up with new ways to stimulate those animal spirits to get them hiring and investing and boosting growth. >> obviously we're talking here first of all about the fundamental economy and what that's doing rather than the market performance which is linked but a separate beast but now important is the market performance to creating a wealth effect that can then boost the economy? is that part of what the government is targeting or is it a separate retail federally in the market. >> it's part of the story because it does help generate growth growth. the retail investors are starting to feel better. they'll feel more comfortable about investing. that should help boost it which is very week so far this year.

it should help turn this around if they're sustained. >> thank you so much as ever. >> now despite softer chinese data there is a broad based recovery taking place thanks to retail and real estate. this according to china's beige book. head to our website for more. >> now for our viewer exchange we want to hear from you. what is your biggest fear for markets right now. perhaps it's china we just discussed or greece or the fear of the fed and others raising rates and taking that monetary policy stimulus away. so get in touch with us. e-mail us worldwide@cnbc.com or twitter and our personal handles coming on the screen now. for me the elephant in the room is china. not just the market and potentially correcting but compared to greece it's a far bigger country and if we get a bigger correction than people are pricing in in the economy,

not the market. we see global markets suffer when they're already fragile. >> but u.s. markets are trading in record high territory despite the volatility and lackluster growth. at the end of the day the biggest risk is fed policy. once we get a lift off or sign or indication that rates will be rising perhaps sometime in 2015 that i think, will be the big market mover or biggest risk because this has massive implications. not just on u.s. stocks and bonds but emerging markets which are so dependent to borrow money. there could be massive moves that we see. of course we have been -- the imf among others the world bank have been trying to urge investors to get ready for lift off that we could see some type of volatility. now the market has been prepared we won't see as much volatility as some people are forecasting. >> but a agree in terms of the severity of that because even though the first rate hike is going to be small it's a

massive, massive unknown. when they start to go in the other direction we don't know how markets are going to react. in regards to that it's u.s. equity markets that have been the most resilient so far. none of us are saying greece. >> that is interesting. despite the focus on greece whether it be media or investors, it's a lingering concern but i come back to the fact that greece makes up only 3% of euro zone gdp but it's more about the ramifications if there's a domino effect. >> get in touch with us via twitter or e-mail. our personal handles are on the screen. greece, fed, china or something else. give us your witnesses on what might make you fear markets at the moment. >> still to come on the show his power diminished since the elections but is the central bank finally free of political

interference? stay tuned as we discuss.

>> angela merkel warns that the greek parliament will have to accept the term of the bailout. >> a lot of work needs to be done and we're running out of time and therefore we have to concentrate on this work. >> global growth engines shift up a gear. they emerge from recession while germany continues to grow. chinese flash pmi also gaining momentum despite a lingering contraction. >> another roller coaster ride for chinese equities returning to business after the holiday weekend. major markets come back from a near 5% drop but levels are well below highs of the year.

>> let's take a look at that mega rally in yesterday's trade. nothing like yesterday but still a positive territory for the dax up about 1% now at 11,568. it will be interesting to see if it will b ablee able to break 12,000 time this week. holding on to a gain of 8 points. the cac 30 up. when looking at the pmi data across the euro zone, france expanding in june for the first time since april of 2014. now a look at individual movers. >> it's up just over 10% it's confirmed to tie up discussions with the privately owned betting rival. they could carry it out if the talks continue according to a

statement from the company. where is that down here? that's up 10.8% after it rose to $20.5 billion. meanwhile, the company says it expects net profit to be more heavily skewed toward the second half of the year. now the u.k. government is cutting it's stake to just below 12% according to the finance ministry ministry laws. it's just below flat on the news. let's also mention rbs which is holding it's agm coming up later today. it's up about 0.36%. catherine has more details on what to expect. catherine. >> well, if you're an rbs shareholder which we are still you have plenty of reasons to be cleared with what's happened in the past few years they're still

suing the bank over how that was conducted. it could be angering shareholders is this potential that rbs may have to pay government fees for the 80% stake in the bank and of course this is going directly into the pockets of goldman sachs rather than the shareholder so there could be a little bit of a revolt there. quite a lot of issues facing the bank including those other profile failures which may also separate attempts to sell off challenger bank. >> seeing rbs shares up about 5% over the past 12 months. >> let's pick up on the other big movers and we're looking at air lingus up 0.8. it's in exclusive talks with apollo on the sell of the french

company's manufacturer. let's get out to stefan live in paris with all the details. >> good morning, wilfred. 3 billion euros is the glass packaging unit. it's also in talk with the french public investment bank which could buy a minority stake. they have been trying to sell this since 2011. it first wanted to ipo but eventually cancelled the project because of the poor market conditions. they sold the north american unit last year and the disposal of the remaining part of the company would achieve the transformation which is now focused on construction and building materials. in a statement they say that the choice was based on the quality of the author and support for its employees. they operate in 13 countries with a total of nearly 10,000

employees it generated last year an operating profit of 230 million euros and among other products they make bottles for the champagne industry and if you don't know the french company it was founded in 1665 350 years ago to produce mirrors for the royal court of versailles so it was basically used by marie antoinette. [ speaking french ] >> now let's move on. the european central bank raised the lending for greek banks for the second day in a row. this as greek depositors continue to with draw deposits. >> meanwhile european leaders are racing against the clock to reach a deal with athens by next week but greece's deputy

parliament speaker says the current offer to creditors looks, quote, difficult to pass julia sent us this report. >> a lot of managing the message going on from officials. the president of the euro group saying look the proposals from the greeks are welcome and he believes we can get a deal done by the end of this week. he said we'll reach a deal because we simply have to. the key disciplinarian remains the imf. christine legarde still a stern message from here. listen to what she had to say. >> we continue to work on the basis of a new proposal which is more comprehensive and includes much more details but still short of everything that should be expected so there's room for negotiation and room for work and hopefully we'll be

constructive in a very short period of time. short on time long on work. >> a number of analysts suggested that the imf would look at it and say we have 1 to 1.6 billion krur rows to make up in order to converge on this future plan and we're still talking very much about a short-term option. merkel made that clear last night. she said look we're not talking about any form of third bailout deal. we're not talking about any kind of debt renegotiation. just a line on that going to be very crucial for him to be able to go back and sell the measures that are still going to have to come if they reach a deal here. he was very different in terms of tone when he left the meeting last night. listen in. >> translator: we want a comprehensive and viable solution accompanied by a strong growth package that will make the greek economy viable so the country can stand on its feet again. we must secure the financial

need of the country totally in the medium term so it will be with social justice as our guide with alternative measures accepted by the institutions. our criteria is financial viability, sustainable debt and a strong front loaded growth package. after all this to use a common phrase on these occasions, the ball is in the court of the european leadership. >> a stark contrast in the tone between the two leaders. that tone not helped though by the comments that he made yesterday suggesting there was nothing fresh on the table compared to thursday. he was trying to increase the deposit outflows from the greek banks. very much at the forefront of the issues being discussed here. there was also talks that a greek government official suggested that mario dragi said that provided they're in a program the banks will be protected. we have to be very cautious of

comments like that. yes, government officials are trying to send a message to depositors but i find it hard to believe he would make any comments like that of the short, particularly in this stage of the negotiations. for now we have to wait and see what comes out of the discussions to take place in the next few hour with the hope that we can get a euro group tomorrow evening to start the process of signing off on this short-term deal. back to you. >> now we're going to switch focus. turkey's economy minister reiterated his stance in favor of lower interest rates. the central bank is expected to keep rates on hold at 7.5% later today today. this comes a few weeks after he failed to secure the policy elections. joining us is william jackson. senior emerging markets economist. good morning to you. >> good morning. >> let's talk about the central

bank meeting and expectations of whether we see a rate cut or not. consensus not expecting that cut but is there risk that they do indeed, change rates? >> i think the central bank will keep interest rates unchanged today. a rate cut is very unlikely. if anything it's more likely they might raise interest rates. while the government put pressure on the central banks to lower interest rates, all the macro economic data suggests higher policy. >> and it seems that will continues to be interference from politicians. so we heard it from the economy minister today. how off putting must that be. >> it's been very off putting. we have seen a complex monetary policy decision some may have diminished without any party

having a majority in government but it will still prevent them from raising interest rates today. >> the move in the lira caught the attention of investors around the world hitting a record low against the u.s. dollar a couple of weeks back on the back of political uncertainty but now that that is behind us do you expect stabilization in the stabilization in the currency going forward? >> it might be premature to say it ended. we don't know how a government will be formed and a risk we might see fresh elections in the coming months. >> when we take a step back we have been following the slow down in markets like china and brazil but turkey, it's amazing, back in 2012 their economy was growing around 9%. now fast forward, it's growing at 2.3%. is this a lack of government reform to blame? >> the slow down has been pretty

dramatic and reforms have been a big part of that. the fast growth rates were driven by a risen private sector credit and were accompanied in the deficit. they were dependent on foreign funding. what they need to do now is push through reforms to raise investment. that could push growth further. >> you mention the account deficit there when we get closer does that put them top of the list of emerging markets that's going to suffer? >> turkey flashes red on this. it has the largest current account deficit of any market. the extent they're effected will depend on the degree to which there's market turmoil caused by fed tightening. the rate hike must be priced in. it depends on what we see afterwards and how aggressive the tightening is. >> thank you for joining us. much appreciated. william jackson at capital economics. >> moving on still to come on the show weakness in the chinese economy takes the shine off copper prices but what's the outlook into the next year?

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>> welcome back to worldwide exchange. let's talk base metals. china's factory activity

remained high in june but remained for the fourth straight month. even as new orders in exports recover. >> now weakness in the chinese economy impacted the volume ofalue of copper. it has been subdued in many sectors including real estate power grid, construction. where does it head from here? michael, great to have you on. our focus for so long this year has been around other commodities like oil as well as gold but now copper grabbing the attention given that it's now trading at a three month low i believe. what's the driving factor behind this move? is it the stronger dollar or does it have to do with the seasonal slow down in china. >> there's a few things coming together but the two biggest consuming region is europe on the one hand side and china on the other hand is side. the second half of last year and into the first quarter of this

year were not quite as strong as it could have been. you mentioned it at the out set. it's still in con track toirtraction territory. copper has been a bear market for four years and in that environment it doesn't seem if you have improvement sufficient enough to take it out of that. >> investors are not betting on a recovery coming sometime soon and that is perhaps the reason to get bullish on copper ahead of that? >> possibly. you can put on short-term tactical trades but the underlying picture is still one of weakness. there's nothing right now on the fundamental side that would take us out of a bear market. next year could be worse than this year. >> does chinese stimulus no longer have an effect not just on the economy but copper prices. there used to be a nice

correlation there. it doesn't apply anymore. >> it is important. but the government is talking about how supportive stimulus is. we're not talking about how bullish it is. no one expects that. the way i would improve it is they better do something because otherwise demand will look awful in the second half. >> not particularly positive on the outlook for copper. any base metals you're more positive on? >> nickel is one where you see a little bit of a die verge in fundamental picture in that supply is tightening and they're starting to turn now so that could be a little more upside on that one. >> you know what's coming next. what about gold? it's broke 1200 last week. a lot of that having to do with

the greek fears from what i understand. since then it has been trading well below that level. >> yeah it's a tough one for gold at the moment. when yellen came out and was a little bit more dovish that pushed gold up but the underlying picture that people still struggle with is what is going to happen to the dollar for the remander of this year and we're still calling for parity and that makes it very difficult. >> and fed policy is dictating the price of gold more so than consumer demand which has been rising when you take a look at markets like india and china. >> absolutely and the reason why that is is we have a massive policy differential starting to open up and this is one of the first times we have seen that to that extend and that has a big impact. >> i did a report about a year ago on how while gold is still in high demand in india that the younger audience is switches

focus to semiprecious stones. they now want diamonds and emeralds and rubies. so that's contributing to the fact that we're not seeing as much demand as we did before. >> how big of a percentage is jewelry in terms of the demand? >> depends on how you cut and slice it. in india a lot of jewelry is bought for investment purposes but broadly on average around 60%. >> that was a hint to you by the way. not a big fan of gold. >> i completely missed that. emerald, rubies diamonds all works. >> now north carolina governor says the confederate flag should be removed from the grounds of the state capital. the flag has flown in front of the capital building for 15 years after being removed from the state house dome. she acknowledges the flag's use as a symbol of hatred by the man accused of killing nine black church members in charleston last week makes it too deviceive

to display in a public place. >> there's some in our state that see this as a sad moment. i respect that. but know this for good and for bad, whether it is on the state house grounds or in a museum the flag will always be a part of the soil of south carolina. but this is a moment in which we can say that that flag while an integral part of our past does not represent the future of our great state. >> now president obama will travel to charleston on friday to memorialize the victims of the church shooting. he will give the ueulogy at the funeral of the former state senator. walmart and sears holding will no longer sell products featuring the confederate flag at their stores or online. amazon and ebay features several item with the flag but they're

sold by third parties. >> reporter: good morning, you heard the governor of south carolina that defended keeping that flag on the state capital grounds but is now joining a growing chorus of voices to remove it and we're hearing people talking about this all over the country, on the campaign trail. the presidential campaign trail but this say decision that had have to be made in south carolina. also others reversed course on this senator lindsey graham that just a few days ago said this is something that south carolina has decided to keep and it's part of our state's history. now joining governor haley and others democrats and republicans, black and white calling for the flag to come down. in fact graham said and i'm quoting here that flag has got to go and the sooner the better. the question is the process of getting that done. they have a special session

coming up and it takes a 2-thirds vote to bring it up for discussion. in formal vote counting going on down there now it's not clear the votes are there. while there's a publish push to have this done the mechanics of getting it done is just not clear that that would happen or if so how quickly it might happen. >> thank you so much. >> hillary clinton is the front runner among the democratic candidates running for president. 75% of voters could support clinton for the democratic nomination. just 15% support democratic senator bernie sanders. in a hypothetical match uphill ri leads jeb bush by 8 points and her lead widens versus marco rubio and scott walker. quite an interesting poll but in terms of the race specifically for the democratic nomination, no one is expecting anyone to beat hillary are they?

>> that's one thing to keep in mind. it's the lack of competition on the democratic side that's resulting in her doing so well. what if there's a candidate that joins as we approach the presidential race next year? that would be interesting to see if that changes the dynamic. >> last time around people expected her to win again and obama came out of nowhere but she has been through it before. she's a big, big party member and i don't think her and her team would have even got this far and allowed it to get this far if they weren't sure it was locked up already. that's what the polls are suggesting. >> i was speaking to one person that said in her previous campaign she was criticized for not being as vocal or outspoken. afraid to test the water. this time around she is making up for it. being passionate during her speeches and that's another reason why she at this point is doing well in the polls. >> indeed. >> let's see what happens. alexander hamilton should stay

on the $10 bill. in a blog post on monday the former fed president says the idea of featuring a woman on u.s. currency is great but not at the expense of hamilton. bernanke says andrew jackson should be kicked off the $20 bill as he was a man of poor qualities and a poor president. >> a lot of people have been calling for a female leader to be added to the $10 bill as they should. we need some women power. >> but there's been quite a lot of support for what he was saying overnight. quite a lot of people on twitter getting behind him saying absolutely. >> you had your ideas as well. >> of course. but one person that won't be appearing on any treasury bills is p. diddy. he was arrested and charged with assault at a ucla complex. school officials said the

alleged victim was someone affiliated with the football team. a team in which his son justicen plays. he has another teammate in the form of rapper snoop dogg. the incident involved the use of a cattle bell as a womeneapon. no one was seriously hurt. >> let's switch focus back to markets on a tear once again. not to the ex-tent of yesterday. we are looking at 1% of gains in germany just under that amount in france italy and the ftse 100 lagging behind. of course positively today and yesterday stemming from the fact that people think that we're getting closer to a greek deal. >> let's take a look at the bond market. elevated yields was the story earlier this month. but quite a different picture here in this week. we're look agent the 10 year note trading at 2.3% and yields coming down in greece as well. interestingly enough as investors bet on a potential deal coming together sometime

this week. u.s. futures what are they telling us? we did see stocks rebound in yesterday's trade on wall street and the rally could continue. the dow indicating a higher open by 21 points. nasdaq hit a new record high. up 7 points in premarket. >> now despite the european market rallies just 48 hours left according to christine lagarde for a deal to be worked out with greece. we're live on the ground in athens after this short break.

>> here are your headlines from around the world. >> holding out hope for a greek deal. u.s. futures take a queue from europe. the ecb meanwhile raises emergency funding for greek banks for the second day in a row. >> whether we have a deal with athens or not global growth is shifting up a gear. euro zone composite pmi hits a four year high. this as it improves but hovers in contraction territory. >> they pick up speed as chinese fund manager hill house capital leads a $1 billion investment in the taxi sharing app. >> hillary clinton commands a wide lead over her party rivals and top republican candidates in the latest wall street journal

nbc poll. >> so over the start of the week global equity markets rallying very strongly perhaps because of the positivity we heard about the potential for a greek deal but there's still so far to go. i wonder whether the markets are getting ahead of themselves. >> the only thing that changed is we have been seeing optimistic and positive commentary coming from the greek leader but we have been seeing other z voicing their positivity. that's the only thing that's really changed and that's why investors are saying the europeans are saying a deal is perhaps on the table. let's buy into stocks ahead of something coming together. >> just one extra thing to bear in mind on this issue is yes we have stocks in positive territory. perhaps because we think that the two creditors and greece will find a deal but then greece has to get that put through

their parliament and people still not pricing in that minor aspect. >> i am surprised at the big move in equities. particularly the greek equity index gaining 9% in yesterday's trade. u.s. markets rallying on hopes of a deal. it's less than a percentage away from break it's record high. nasdaq up about 7 points. yesterday the tech heavy nasdaq did hit a new high. a lot having to do with netflix shares which also had a hit thanks to btig raising it's price target on the stock. what are we seeing in europe? there's two separate reasons driving investors into equities today. one the hope of a deal coming together between greece and it's international kred tors.creditors. deadline fasting approaching. we also have euro zone data rising to a four month high. adding a little bit of

positivity here in europe. keep in mind yesterday the german markets gaining better than 400 points. a big move for the german index well below it. keep an eye on the greek equity index up 3% and the ftse 100 a little bit of an underperformer. not as much as in other parts of europe. up about six points. >> let's look at the bond market as well. the bond market in europe has reacted as you might expect similar to positivity over the greek issue. we've seen the yield on the german bond rise up a little bit now seeing some profit taking. we have seen some of the countries see yields come down a little bit, 10.7-on-the greek ten year. now that hasn't reacted as everyone might have expected because the euro despite positivity, off 0.86% today. 11241. that really because it's highlighting once again that the

euro has been used as a funding currency and when we see equities in europe rallying that of course is negatively correlated over the last six months or so with the euro itself. so that move just a little confusing particularly on the day when pmis have been a bill bit stronger policy makers are working to come to a final agreement ahead of a summit on thursday. finance ministers will meet to discuss greece's latest proposal which is have been called a positive step. however after a day of negotiations yesterday the divisions between both sides were clear. >> after all of this, the ball is in the court of the european leadership. >> it is still short of everything that should be

expected. we're short on time long on work. >> greece's deputy parliament speaker says the current offer to creditors looks, quote, difficult to pass. this after a warning from german chancellor angela merkel that the greek parliament would have to accept the bailout terms first and foremost. let's get out to steve live in athens with an update for us. >> look i'm not saying the markets are getting it wrong but they're getting carried away of what's happening here. are they rallying the markets because there's no immediate grexit or capital controls. if so then that's fine. but are they rallying because they think the greek crisis is sold or we're not going to have further speed bumps on the story down the road. because if it's the latter they're wrong. a lot of german people that don't think it's the right deal

for germans and german taxpayers and we're not that far away from the 2017 election where they can seize upon any weakness with the germans and then the greek side as well. we have had a really good sampling of what people think of this and new democracy as well. he basically said this is a really really bad deal for greece. doesn't like what he is doing. saying there's absolutely no growth agenda at all in this deal at all and i said to him would you vote for it? he said that's a very difficult question because he's a patriot and doesn't want to see a grexit and he could vote for it so greece could move to the next stage. it doesn't address the problems greece is facing such as the growth as well. you've got the creditors don't like it and pretty much most people across the board, despite

what was said yesterday say where's the growth agenda? there's no growth agenda in increasing tax on corporates to 29%. we have 20 21% corporate tax as well so you're putting yourself at a competitive disadvantage within the eu as well. a lot of people say they don't like the deal. you still have the point he tried to bring forward and was told no. that's for a later conversation and that was about debt relief as well. changing of coupon terms as well. so added to all of those concerns you have this which is over 300 million euros. they're not inflating their way out of it and not getting reprofiling of the terms but if there's no immediate default or grexit or capital controls

that's fine. but if they're rallying because they think that the greek problem is solved in anyway shape, or form then they're sorely wrong. back to you. >> thank you so much. now let's get you a run down of what to watch this trading day. may durable goods orders are out at 8:30 a.m. eastern. demand for big tickets itemed is expected to have slipped last month. at 10:00 a.m. we get may new home sales which are forecasted to rise but at a slower pace than in april as for earnings look for results from blackberry. we'll get a sense as to how the company is doing. >> let's look at the other top stories. chinese fund manager is leading a $1 billion investment in uber. the wall street journal says it will be at a discount to the future ipo price. it reportedly sparked

controversy as they're an investor in the main competitor in china. >> that was what i would say. >> let's stick with the auto space. a new report suggesting global growth in auto sales is about to shift into a lower year demand will slow to 2.3% annual rate over the next several years. u.s. auto sales could peak as they rise. lower gasoline prices could cause problems for auto makers as consumers could wait longer to pay for new technology. >> the senate commerce committee is holding another hearing into the massive global recall of takata airbags. they have been linked to at least 8 deaths and 100 injuries. ahead of the report they say takata may have put profit before safety. they're saying it contains a

number of inaccuracies and the e-mails were taken out of context. that share price action down 2.4%. now still to come the u.s. hosts top chinese officials in washington for talks aimed at approving bilateral relations but will it cast a cloud over the summit? eunice joins us in beijing to discuss after the break.

>> u.s. markets set to follow europe higher on hopes of a greek debt deal but they do still remain. hilary lynn on the commands a wide leave for the democratic election according to the latest pole. plus chinese fund manager leading a $1 billion investment in uber. wild swings in china's mainland equity markets. the composite ended the day in positive territory up 2.1% clawing back from a sharp 5% sell off earlier in the session. the hsbc flash pmi came in at

49.6 slightly above may's reading and ahead of forecast. >> and we want to hear from you whether it's china, the fed, or greece, what is your biggest fear for markets right now? perhaps it's none of those thicks. it's something else all together. e-mail us worldwide at cnbc.com. we'll get in touch at cnbc wex and our personal handles on the screen. i've been bearish on china for awhile and overall that's my biggest fears on markets. not just that it will disappoint but people are expecting it can transition from 8 to 7 to 6%. we're going to have a much bigger drop and china will have a massive impact on the global economy. >> developed markets are those insulated from the lack of growth in china and the volatility in that market. >> this is more of a comment on the economy than the chinese

market and particularly markets. >> i would say fed policy because we've seen mixed economic data out in the u.s. the fear is if the fed raises rates the economy won't be able to continue it's economic recovery. i would also point out valuation, the s&p 500 is trading in record territory. a half a percent away from break it's all time high. it's now at 18 times earnings which is above the historical average. and that's a warning sign. >> so sum it up. all in all, bullish or bearish for the rest of the year? >> listen i'm a reporter. you don't take a stance on the markets. based on the conversations i'm having there's no other place to find yields so they no choice but to find equities. i see this headed higher based on my conversations.

>> i'm bearish. i did take a position. >> an annual dialogue between china and the u.s. kicked off with candid discussions about a number of issues including cyber security. top of the agenda is beijing's territorial claims in the south china sea. let's bring in eunice live in beijing with the latest. complicated wouldn't even begin to describe the on going, you know evolving relationship between china and the u.s. >> no it's a very very complicated relationship and we're seeing officials from china as well as the u.s. entering these talks in a very challenging environment. the relationship between the two is prickly and most recently over china's island building and other activities in the south china sea. that's been an irritant for many u.s. allies in the region and the u.s. also voiced it's suspicions that a recent hacking on u.s. government computers which resulted in millions of

government employees having their personal information compromised was carried out by china. china has denied this and has said that it itself is a victim of cyber spying but obviously this is a very contentious issue and u.s. officials already said they're going to address this in what they called very direct terms. they're not going to be papering over a lot of their differences. at the same time the overall purpose of the strategic and economic dialogue has been to try to force these two very important trading partners and economies to sit down and workout all of these issues even when it's difficult so they can focus on the greater economic story which is two major economies very interdependent. >> thank you so much for that report live from beijing. now the u.s. senate is set to decide whether they will have a revote on the fast trade trade

bill which will give president obama the authority to wrap up a transpacific trade deal. mitch mcconnell set a procedural vote for today. if it clears the vote will take place on wednesday. the vote may come down to a hand full of senate democrats. the house passed the measure last week. >> japan's sumitomo mitsui is eyeing the rail car leasing business. reports say wells fargo and other firms may be interested. ge is ramping up efforts to sell the bulk of the $500 billion in assets held by ge capital business. let's have a look at price action. ge up 1.4 in german trade. sumitomo is up 2% today in japan. >> coming up, the middle east is set to take a bite of the big apple. coming up we'll discuss the real estate market and the western markets and what's happening in the middle east. we're back in two minutes.

>> hillary clinton is far and away the front runner among the democratic candidates running for president. 75% of voters could support clinton for the democratic nomination. just 15% support bernie sanders in a hypothetical match up for

the general election. hilary leads by 8 points and her lead widens versus ramrcmarco rubio and scott walker. >> the idea of featuring a woman on u.s. currency is great but not at the extense of hamilton. he says andrew jackson could be kicked off the $20 bill as he is a man of unattractive qualities and a poor president. >> now new york city tourism activity hit a record high last year according to 56.4 million visitors. including 12.2 million from abroad. meanwhile up and coming destinations are looking to climb the ranks among global hotspots hotspots. joining us to talk about the changing retail landscape both in america and abroad is the co-managing partner at gulf related and president and ceo at

related urban. ken, a very good morning to you. thank you very much for joining us. let's talk about the latest developments you're working on. how is it changing and why is it such an arack tif destination to build retail centers? >> good morning. well, we looked very hard at that whole region as a very significant u.s. developer we're the largest private developer in the united states based in new york. so looking at doing business in the middle east and you begin that journey always in dubai but it didn't take me very long before i started to focus most of my attention there and because i sort of compare them the comparison i draw here in the u.s. is like new york and boston. so new york with 60 million visitors.

boston with 15 million and dhabi push -- dubai pushing 7 million visitors. it's an interest place to look at tourism but it's the captive market, the people that live and work there that become the heart of the business we expect to do and people spend an average of more than five hours in a shopping center and a shopping center experience with great food and beverage and that compared to like 90 minutes here in the united states. it's an interesting start to our analysis and we're launching a 3.5 million square foot project on top of phase one we opened here about a year and a half ago. >> do you think that the liberalization in the financial markets, particularly in saudi arabia is feeling demand for real estate? broadly speaking? across the middle east?

>> i call it the switzerland of that part of the world. i'm always asked how safe i feel. but not only from a business point of sue but we all view this is a safe place to invest. now the island which is the gulf related global partner here is the driving force behind the island which is the commercial center today. just announced here in the last two weeks it's a free zone which opens this up to the international markets and in a very significant way and you could see from some of the photographs we brought best in class practices to this so the family is our retail operating platform there and we're bringing the second bloomingdales store into this project and the first macy's store outside of the united

states into this: the heads of those companies have been very involved and incredibly supportive of what we're doing. >> we've got about a minute left on your view of the u.s. retail space at the moment. of course it took awhile for retail and consumer numbers to pick up this year but they did recently. are you confident that the consumer is strong in the u.s. for the rest of this year? >> i think we're in for a little bit of a shaky road here. i think the visitor profile here in the united states is going to have an impact on things short-term. we're all seeing that the dollar against the euro had quite an impact. you're seeing the amount of consumer sales in certain sectors be impacted by that. but we're bringing neiman-marcus and more than 150 stores to that project. we have a very positive long-term view of what's going on but the next 6 to 12 months will be a shake out and everyone has a little bit of work to do

here to keep positive momentum going. >> thank you for joining us. >> now, wait for it. not berry good. can blackberry bounce back from four straight years of declining revenue? we'll break down the figures after the break. >> and we'll leave you a look at how futures are trade ago head of the open on wall street after a rebound in yesterday's trade. dow up 13 points. nasdaq up 5. more on today's trading action after this break.

>> you're watching world side exchange. i'm seema mody. >> here are your headlines from around the world. >> u.s. futures take a queue from europe as equities touch a three week high. the ecb raising emergency funding for greek banks in the second day in a row. >> whether we have a deal with athens or not global growth is shifting up a gear. euro zone composite pmi hits a high. this as activity improved but hovers in contraction territory. >> uber picks up speed on the road to an ipo as chinese fund manager reportedly leads a $1 billion investment in the taxi sharing app. >> blackberry tees up for earnings with all eyes on the struggling hand set unit as they bet on the push into software.

the nasdaq climbing to a new high helped by shares of netflix which also hit a record high. raising the price target on that. up 40% year to date. the focus is on greece. she characterized the proposal but said more work was needed and that time was short. greece must repay 1.6 billion euros to the imp on june 30th and needs access of $7.2 billion from its international creditors. at this point investors are hopeful of a deal coming together some time this week and we're looking at equities higher across the board following the mega rally in yesterday's trade

with the german dax gaining 3% today. another 1% gain to the upside. the xetra dax up 113 points. in today's trade we got euro zone pmi data better than expected and france was the stand out. private sector growth. the highest since june 2014 and yes let's take a look at the greek equity index after gabing 9% in yesterday's trade and that's sending the greek banking index to a new 52 week high. let's take a quick look at asia. it's interesting to see how greek optimism over a deal helping global markets across the board not just in the u.s. and europe but asia as well. we also got pmi data out in china. manufacturing remained stuck in june. the flash data showing some

improvement but not as much as we are expecting but it's the hope of further pboc central bank intervention sending investors into chinese stocks despite a volatile couple of days of trade in china. closing up by 2%. >> thank you very much. let's talk corporate news. blackberry reports physical q-1 results before the bell with analysts waiting to see how the company's classic device failed on the front. the targets for the software business are in focus with some experts suggesting blackberry's new strategy should move away from the struggling unit. share versus fallen 6% over the last 12 months. joining us to discuss this further is the managing director at cm research. good morning to you. very good to see you as ever. let's kick off with blackberry in terms of the hand set part of the business. the fact that all eyes are on a phone described as classic tells the story.

they are a long way behind the innovation curb these days. >> they have lost a lot. let's see what the business is today and where it's going tomorrow. what it is is a hardware business, a services business and software business. the hardware and services businesses are in decline and the software business is growing and we need to find what it's going to do. the reason the hardware business is in decline is its based on a bb 10 operating system competing with apple and google so it's losing. the services business is essentially mobile device management and they're doing well as well. we need to know what it's going to do in software. >> blackberry has been trying to diversify it's product base away from hand sets and more focus into software and mobile security but blackberry has been labeled a turn around strategy for three years now. i have been following closely.

the stock is down about 17% year to date. when do we see the strategy come to life here? >> today we'll find out what the strategy is. is blackberry a closed system or is it open? there's rumors they'll move to an open android system but google made it clear that if it's not a going mobile services partner it's not going to make a lot of money. >> what's your call on the stock? >> sell. >> let's move on and talk about twitter twitter. change in leadership or transition in leadership. what do you want to see from the full time ceo and what should be his priority? >> i think, as we said last time, for a social media company to be successful it needs a big ecosystem and needs to start in a place like tweets and it needs to expand quickly and twitter hasn't expanded quickly. it doesn't have a lot of legs in digital life.

essentially it's what it was when it started. so the new ceo needs to tell us how he's going to move into mobile commerce and payments which we know he is trying to do into all other aspect of digital life. >> adam bain twitter's president of global revenue, widely seen as someone that could be the next ceo, he'll be joining squawk alley on today's show but do you think the company needs to look external in order to really provide the type of expertise they need to optimize their social media platform? >> they need a ceo with two skill sets. the first is a coo skill set and that's bringing the skills of an experienced internet search or internet advertising guru who knows how to get increased internet advertising revenues and the second skills set is a growth strategy. what are they going to acquire? facebook acquired what's app. it's acquired a whole bunch of

other things. >> twitter bought pericscope. >> it did. that plays to the internet tv theme and we think twitter could be strong in internet tv but they still need to develop that proposition. >> your call on twitter is -- >> sell. >> what about on facebook? >> buy. >> so you clearly see more opportunity in facebook at this point. >> we see facebook's ecosystem expanding faster than twitters and the revenue potential much greater. >> the tail of two social media giants. thank you for joining us. managing director at cm research. now coming up later today, a first on cnbc interview with the blackberry ceo following the company's latest earnings report. that will be at 11:45 a.m. eastern time on squawk alley. >> let's look at today's top stories. janet yellen is refusing to give information to congress about an alleged leaker fed deliberations in the fall of 2012. it is an on going probe by the investor general and the justice

department. in a letter to the house financial services committee the inspector general told her providing the information may hurt the criminal investigation. >> now a troubling story from the music world. shawn p. diddy combs was arrested in los angeles and charged with assault in an incident at a ucla complex. the alleged victim was someone affiliated with the football team. a football on which comb's son justice plays. reports suggest the incident revolved the use of a kettle bell as a weapon and police say no one was seriously hurt. still a troubling story. >> indeed. uber's valuation is about to rise again as the popular car sharing app is reportedly set to get a new investor from one of the fastest growing markets. we'll break down the details after the break. you know i tried one of those bargain paper towels. but i had to use so many sheets per spill the roll just disappeared.

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s. >> south carolina governor says the on the ked rat flag should be removed from the grounds of the state capital. haley said the flag used as a symbol of hatred by the man accused of killing nine black church members in charleston last week makes it too deviceive

to display. >> for good and for bad, whether it is on the state house grounds or in a museum the flag will always be a part of the soil of south carolina but this is a moment we can say that flag while an integral part of our past does not represent the future of our great state. >> now president obama will travel to charleston on friday to memorialize the victims of the church shooting. he will give the eulogy at the funeral of the pastor of the emanuel ame church and former state senator. now walmart and sears holdings will no longer sell products featuring the confederate flag. amazon and e-bay features several items with the flags but they're sold by third parties. let's get to tracie potts live in washington following the story for us. >> we are hearing a lot about this flag outside of south carolina, in washington. on the campaign trail. the businesses that you just

mentioned but whether or not that flag stays at the state capital in south carolina is a decision that will have to be made in that state and while now there's more momentum now wanting to see it removed, that does not necessarily translate into votes. they need 2-thirds of the legislature to bring it up for discussion. there's a lot of vote counting going on there and it's not clear if the votes will happen. so we'll watch that process as it happens and there's people in south carolina that defend the flag staying at the state capitol capitol. they say it's part of the state's confederate history and it should not be put in a museum. they're concerned what happens then with street names or statues with confederate ties. this is just the beginning of erasing what for some was a very controversial and painful but still part of that state's

history. so a lot of debate going back and forth. the next step we're watch as good the president being down there on friday but also to see what and how soon south carolina's legislature might act on this. >> tracy, thank you so much. now switching focus to the markets, this is the biggest week for the ipo market and keep an eye on fitbit the wearable company that went public last week on the new york stock exchange. a blowout listing and the stock continues to race ahead. it's do close to doubling up about 96.8% up from $20 a share despite concerns about on going competition with am and samsung. >> crazy valuation. amazing performance since the ipo. another company that have a very full valuation, uber. let's switch focus to them. it was reportedly valued at roughly $50 billion making it the world's most highly capitalized start up. that could be set to rise

further let's get all the details from landon at cnbc hq. >> good morning, chinese investment firm hillhouse capital is leading a $1 billion round of funding in uber. the wall street journal says they'll buy bonds that convert into shares at a discount to the future ipo price. the deal has sparked some controversy as they're also an investor in the biggest rival in china. hill house which is based in beijing is one of asia's biggest fund managers overseaing more than 20 beside in assets. the journal says it was originally seeded by yale university's endowment fund. also having placed a big and early bet on chinese online gaming company. they pledged to spend about $1 billion in china this year and reportedly launched a separate round of funding specifically for china operations on monday. the total fund as good nearing $10 billion. a new record for a u.s. tech start up before it goes public.

most of that has been raised in the past six months and will go toward expansion to more than 300 cities around the world, new technology and it's counting legal fees. uber was close to securing a $2 billion credit line from a group including morgan stanley. the city's taxi commission approving new rules on monday for app based car service which is allow companies to update software without regulators approval. uber and rival lift update regularly. uber has about 26,000 riders in new york. back to you. >> thank you very much. >> let's stick with autos. a new report suggesting growth in global auto sales is going to shift into a lower gear. the consulting firm is forecasting demand will slow to 2.6% annual rate over the next several years.

auto sales could peak in 2016 as interest rates rise and prices of used cars fall. low gasoline prices could cause problems as consumers could wait longer to pay for new technology to meet tougher standards. >> they're holding another hearing into the massive global recall of takata air bags. they have been linked to 8 deaths and 100 injuries. they may have put profit before safety. takata is criticizing the report saying it contains a number of inaccuracies and the e-mails were taken out of context. >> here's your headlines. u.s. markets set to follow europe higher on hopes of a greek debt deal. hillary clinton commands a wide lead for the democratic nomination. plus japan is reportedly eyeing ge's u.s. rail car leasing business. you're watching cnbc first in business worldwide.

you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.

welcome back. let's take a look at u.s. futures. stocks moved higher yesterday. the dow and s&p 500 now in record high territory. the nasdaq hitting a new high in yesterday's trade and stocks posed to continue their run higher. dow up about 19 points. nasdaq up six. s&p 500 up three in premarket trade. >> european equity markets had a fantastically strong day on monday and they're strong again today. we're looking at germany up 1%. france up over 1% as well. greece leading the charge up 4% and it's really positivity overgreece that voided markets yesterday and today. also to a lesser extent descent

pmis out of europe this morning. now the european central bank raised the limit on emergency lending for the second day in a row. this has greek depositors continue to with draw at a rate of around 1 billion euros a day according to reuters. let's get out to steve. >> thank you. just looking at the brillance in the markets of the last 48 hours it's my job perhaps just to say to people steady on if you're buying for the wrong reasons. if you're buying because of the immediate crisis of a default of a grexit is averted you're buying for the right reasons. if you're buying because you think there's a longer term resolution to the greek story think again. there's a whole host of issues that are problems. not least the fact that we haven't got a deal between the kred tors and greece as well. we haven't got to the level where people can go back and try to sell what is a very difficult

deal to sell back to their home constituents. i say that to the likes of the germans and the greeks as well. and speaking to parliamentarians today on perhaps the right hand side of greek politics and toward the left and of course as part of the government as well it seems that people don't like the deal. now whether it will pass in parliament remains to be seen. it would probably get through parliament. but people don't like the deal and they don't like it for a whole variety of reasons. for instance the mp doesn't like it because he thinks he's going back on the initial promises that got him into power and it could be a suicide note for the party. now on the other side a new democracy rising star said he doesn't hike the deal because it doesn't address the growth

agenda. when you're upping taxes, especially for corporates competing in the global marketplace then you can see where there are questions about the growth side. plus it doesn't address the longer term debt side of things and also it doesn't appear to abated the drain of liquidity out of the banks which means more money had to come in. >> for our fewers in the u.s. waking up and wanting an update on the state of negotiations between greece and it's international creditors what is the main point of contention at this hour in is it pensions wages, or taxes? what's stopping leaders from announcing a deal? >> i think it's money as much as anything else. i think that the measures that the greeks have come forward with are a little bit short here and there. the changes to retirement age. the changes to the vat. the changes to corporation tax. they're all moving in the right direction but they're not quite getting the greeks over the line in term of the money they need to raise and physical adjustment in order to get the greeks to

the level where the kred torscreditors want it. the greeks don't like this deal either and the creditors have been ruthless and perhaps blackmailed the country into getting into this deal. there's a lot of ill feeling. that's what our viewers need to be aware of. >> i want to talk about the euro because equity markets have been very positive toward this greek situation but we have the euro selling off at 1% today. why is the euro going down when there's positivity in the equity markets? >> well look i have always got a lot of theories on this one. i think it's about u.s. data. it's more about u.s. data and what's going on state side in terms of the rate rise than about the euro as well. if the euro is going down that's still nowhere near the kind of levels we were talking about just a few weeks ago even. people were talking about parity

and 95 cents on the euro dollar as well so yes it's coming off a percentage but a lot of people have got very big positions on that trade as well and i would suggest it's as much about taking them off the table as anything else. >> hopes are rising that a deal will come together sometime this week but in the meantime friction is building between both sides steve. at some point will ministers offer greece an ultimatum take it or leave it? >> quite possibly. that's a grave concern. i get the impression and speaking to a whole post of germans they're fed up with this situation. the ecb who is funded by the likes of the germans is pumping more and more money into the greek banking system. the greeks have taken out 45 billion euros in deposits and the ela which is a funding mechanism has had to pump in

around 88 billion euros. the greeks are take money out. there's lite of sticking points. back to you guys. >> another positive day for the greek banks. thank you for your time. greece will be front and center for markets today and u.s. futures higher. coming up later today we'll be talking technology. a first on cnbc interview with the blackberry ceo following the company's latest earnings report. that's at 11:45 a.m. eastern time on squawk alley. >> jordan speith joins scott today on fast money halftime report for a first on cnbc interview at 12:40 eastern time. that's all we have time for today on worldwide exchange. thank you for joining us. i'm wilfred frost. >> i'm seema mody. we'll see you tomorrow. next up, squawk box. ♪ ♪ ♪ (singing) you wouldn't haul a load without checking your clearance.

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the ecb is raising emergency funding for the countries banks yet again. also hailing an investor uber getting a big chinese backer as the ride sharing service drives toward an expected ipo. and kicking walmart out of the top ten u.s. companies by market cap. it's tuesday, june 23rd 2015. squawk box begins right now. >> live from new york where business never sleeps, this is squawk box. >> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with andrew ross sorkin. joe is off this week.

there's 504 days left until the 2016 presidential election. a new poll out this morning finds this could be hillary clinton's race to lose. the newest numbers show her leading all white house hopefuls at this point. there's a number of republican potential contenders and hillary clinton is the front runner as far as it comes to the democrats. we'll have a complete break down in just a bit. we've been watching the u.s. equity futures and after big gains yesterday you're looking at green arrows once again. these are moderate advances at this point. the dow futures are 17 points above fair value. the nasdaq up by 5.5. >> among the big stories we're watching today the ecb raising the limit of emergency funding for greek banks to around $100 billion. this is the third day