>> thank greece it's friday. >> these are your headlines from around the world. >> chinese bears roar. stocks plummet shedding over 8% in the session in one of the worst performances this year. >> another day, another deadline for greece. angela merkel warns a deal must be struck by tomorrow. the greek finance minister insists athens bent over backwards to meet the quote, strange demands of creditors. >> nonorganic growth.

shares shares leap around 40% after an offer is on the table but they're likely to reject the 7 billion euro bid. >> a step in the right direction. investors check into tesco shares after a solid q-1 performance amid it's turn around plan. >> let's bring you some euro zone money supply data. moving average for the three months from march to may plus 5.0%. the forecast plus 5.1 previous reading 4.7. so fractionally below expectations. slightly above the last reading. we're hoping to see money supply continue to grow which it has been doing recently following the ecb qe program as it kicked

off a few months ago. the euro is at 11213. >> euro zone may annual growth loans to private sector up 0.5% versus a reuters poll of 0.4%. another step in the right direction. a sea of red in asia as the sell off of chinese equities celebrates as the composite has one of the worst days of the year. let's get out to sri with more. what is the specific reason for the sell off or is it more of the same? more ipos coming to the market and another crack down on margin lending. >> the catalyst is hard to pin down. i was talking to a strategist about this move that we saw in the china market. so yet another friday afternoon free fall but i would say it comes down to this. it's positioningment it's. it's retail investors. 80% of the market.

they hold on average for about one week. that's the average holding period and it's the fact that margin lending though it has come off slightly still stands at around s2.2 trillion. it's an ultra crowd market and ultra leveraged market as well and feeds off itself. that's one of the reasons why we continue to see high volatility ultrahigh leverage being the root cause of that. the interesting point i want to raise here is the wealth effect that the bull run has caused in china equities and has helped underpin the housing market. systemically very important. so let's not rule out the plunge protection squad swooping in here. it could take a couple of forms. the pboc and they have done this before could act possibly this evening, possibly over the weekend. it could cut the rrr and that could help the market early next

week. we may also see the major banks. that may prop the market up but a huge reaction here in the market. let me paint context on this very quickly. this is the worst one day loss for the mainland market since january 19th. it's the worse loss in almost seven years. so the meltdown in china equities filtering through to other corners of the market including the hang seng and elsewhere in the region we have greece and the deadlock talks between athens and it's creditors. other markets stumbling too. that's where we stand. back to you. >> thank you so much. we'll discuss more.

we're off about 18% since it's 7 year peak this time two weeks ago. it's a pretty good-bying opportunity, isn't it? >> i don't know about that. you to look at how far it has risen. i'm not an equity strategist but the valuations look rather optimistic and there's an awful lot going on. pushing and pulling in both directions so margin trading is one. retail investors is another. you get some stabilization in the pmi. best to stop worrying that the economy might not be so weak and authorities might not support the market quite so much. it's volatile and complex but you have to be aware of valuations. >> first of all, there is the chance that the pboc might be cutting rates over the weekend. do you think that will happen? and secondly should it actually do that because that will inject even more liquidity into the

markets and that could fuel further buying. >> chinese authorities are treading a fine line on supporting the economy and the financial sector. they don't want to create more bubble conditions. will they cut rates? will they cut the rrr? perhaps not this weekend. you've had better signs of economic growth stabilizing all be it imlying a little bit below the 7% or so gdp target. stimulus, yes. perhaps not over the next day or two. >> but this correction we've seen of course a lot of it is to do with retail investors and high levels of ipo coming to the market but the fundamentals in china's economy warrant some form of correction don't they? things have got a lot worse. >> they have. but if you're talking about is the economy going to grow by 7% or 6% you're still talking about pretty high rates of growth and if you're trying to factor in corporate earnings if you look at inflation at say,

2%. >> things don't happen so slowly 1% down each time. they're usually quite binary. suddenly a company goes bust or stays afloat. won't we see a collapse all of a sudden? >> not necessarily. you might see a correction if the authorities sit back and do nothing but there's ways to stimulate in other ways as well. we've seen the rate cuts and reduction in reserve requirements. there's plenty of fiscal room there as well and other more technical actions as well. that helps to massage the numbers and prevent the collapse you're talking about there. >> thank you very much. we'll hit the pause button and come back and talk about europe in a few minutes. now let's focus on european equity markets. as you can see a sea of red today. we're down around 0.6 pktd on% on the stoxx 600.

over the last week it's still up and still pricing in positivity relative to last week but just negative relative to three days ago. >> that's because of the start of the week. that fizzled out quickly. we still don't have a deal. anyways, a look at one of the other top movers in europe today. k and s rallying after the company received a 7 billion euro takeover offer from potash of canada. two sources close to the deal told reuters the proposal would likely be rejected as being too low. they confirmed they made a friendly offer but said a takeover was not certain. coming up on the show annetta joins us with more details but i want to tell you that bernstein believes this deal makes sense, diversifies the geographic and pot exposure and provides resilient streams of earnings and cash but they say it would be limited. >> let's turn the focus back to

greece. just four days to go until greece is due to pay the imf 1.7 billion euros or risk being in arears. but after a week they're no closer to agreeing a deal to unlock central funds to athens. they must find a deal at another meeting tomorrow. >> we very much hope that an agreement can be found on saturday and we have made the point that the meeting of the euro group on saturday will have a decisive importance. i think that kind of language gives you an indication of the fact that time is really of the essence and how hard people should make it work to be possible to be successful. whether that is going to be happening or not i can't say right now. >> on the pulse of the latest developments for us is julia in brussels. let's start with you.

>> thanks so much wilfred. there was somebody around the table at that negotiation that also disagreed with the creditors. so i'm hearing this suggestion being that the creditors are not willing or able to bend any further. we've also heard finance minister was put on the table yesterday bears very similar resemblance to what they put on the table monday. that's the check mate situation we find ourselves in. we're now hearing there's going to be a further euro group tomorrow and then a leader summit on sunday and a lot of the speculation is if we don't reach a compromise deal on saturday then on sunday the leaders are going to be talking about a plan b option. we don't know what that looks like, quite frankly, but remember we've got that imf payment on tuesday. the imf yesterday were very stringent in what they believe. they said there will be no

leeway on that payment even if there were still negotiations as far as a bailout deal was concerned. also we will have to start talking about capital controls next week. we had the threat that they wouldn't be blackmailed but that a deal had to be reached this weekend as you quite rightly mentioned too. so certainly the rhetoric here stepping up. there's also a concern among the greeks that they believe that people are deliberately being intrans intransient. that they don't want to help solve the situation. a real tense atmosphere behind the scenes here in brussels but there was one member of the leaders summit last night that showed some offer of support. just watch this. >> we support the efforts of greek government and alexis to achieve agreement with the european institutions. at the same time we know the importance for everyone to

involve greece and maintain greece in the euro zone. the final day will be saturday and i'm confident that we can achieve an agreement. >> please. >> please. >> i suppose alexis. >> let's get out to steve on the ground in athens. i'm just wondering, given that there's no deal in sight have we seen a pick up in deposit outflows from greece? those have stabilize at the front end of the week. >> i can't answer that question now but what's clear is they upped the ela in the last week and a half. the last figure i heard is 88 billion euros. if you look at the total package that's over 120 billion euros which is more than in total deposits from domestic holders and corporates as well. yes there's been a pick up but

that's been going on ever since february. since it became the government and chief negotiator as well. i have questions on both sides of the divide. mostly, really some of the language that's been coming out from merkel as well. why has she created a market event for monday and referred to the markets saying we need to get this done? i wonder if she was trying to push the agenda or if they have just thrown in the towel on this one as well. i have questions for the greeks as well. they only seem to have gotten down to business in the last 72 hours or so as well. this is something julia has touched upon many times is what is the proper mandate. the key mandate. if you had one for this government is, is it a, to keep greece in the euro zone or b, to fight austerity and i think that's very contradictory as well because if it is the former that they need to get a deal

done on similar terms that are being presented now. if it's the latter well then they have fought their fight but at the expense of a grexit as well. >> phillip shore is still with us. phillip, we've had this for so long and we're no closer to any deal. that means any deal we might get is a fudged issue. surely that kicks the can down the road for six months and we start again. >> we're used to can kicking. we had 5.5 years of it. it's unrealistic to expect it to stop now. there's a coup of hard deadlines. the first is the imf payment on tuesday tuesday. but they have forgotten the bailout finishes on tuesday as well. but if they can't reach the

agreement they have to start talking about a third bailout and the ratification from individual parliaments as well. one possibility would be to extend the bailout for however many months. perhaps another six months and carry on talking. >> so that would be the plan b that everyone is talking about but no one is really sure what it could be? what it could entail? >> well a plan b could be -- well we're not going to settle this at all. we'll start thinking about what it means if greece does default and start making preparations for a possible grexit as well. >> what about the growth situation in europe? we had recent pmis. does this get destabilize regardless of the result or not? >> there's a competence issue and we saw that perhaps earlier

this week. we aren't in a 2012 situation. yes there will be volatility and gdp growth. the situations are completely different between now and then. >> phillip, thank you very much for joining us this morning. a pleasure as always. phillip shore, chief economist at investech. we want to hear from you on this. do these deadlines matter at all and have you personally ever missed any important deadlines? join the conversation here on worldwide exchange and get in touch with us. have you missed any big deadlines? >> i don't think so. i am german. we don't miss deadlines. >> the efficient swiss german. >> i'm german. not swiss german.

>> so you spend a lot of time in switzerland. >> greece is not the only one missing deadline. it might also be iran with the nuclear talks. so let's not just blame greece. >> no. but it is an interesting point. we have gone past them so many times. get in touch with us and let us know your thoughts and any amusing ones that you've missed yourself. >> how about you? >> essays definitely. but i always have time for my tutor so i got away with it. >> you're still here so you made it. >> somehow. >> still coming up on the show cnbc gets in the kitchen with a trailblazer in the celebrity chef race. find out how his global franchise is cooking up a new recipe in the middle east and asia. >> plus don't forget to tip your waiters. mobile payments are causing a surprising trend in restaurants. we digest that data. >> the winner is not donald trump. the miss usa pageant gets

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red across the board. the negativity around greece has come to the fore once again. over seven days the stoxx 600 is still up. don't forget the positivity at the back end of last week and the very start of this week. let's have a look at bonds german yields kick up and go down over negative days. germany is at 0.85 at the moment. italy, moving in the opposite direction at 2.13%. just quickly point out the u.s. as well. 2.4%. positive consumer data yesterday. are we getting a little bit closer to that september rate hike? consumer data suggesting possibly we might.

of course various different factors involved and also the spread between the german and u.s. yield but positivity up 0.1%. 11216. >> let's give you an update on corporate stories. tesco shares topping after they showed signs of a recovery with first quarter sales following 1.3% less than feared. britain's larger super market said they were boosting sales and i want to come back to that one point made lower prices. that's obviously good. but profitability is coming at

the expense of lower prices what does that say about profitability? that can't tell us a good thing about margins. i want to see the margin numbers before i want to say this was a really good report. >> absolutely. the markets taken it well because it was surprisingly steady but certainly not anything -- we also have to keep an eye on their international sales. south korea, thailand and the like we think on the chopping block and likely to raise a bit of capital they can reinvest domestically. >> all right. now i guess you're going to be looking at pictures from the eu summit leaders. they are convening in brussels for a second day running. lots of talk about greece yesterday but no break through and effectively they sent it back to the euro zone finance ministers to come up with a conclusion. we're now expecting to see german chancellor angela merkel stepping out of that fancy car. >> audi of course.

german made car no less. >> i thought it was mercedes. >> audi. it's also. >> do you not know where it's come from. >> i do know that. >> anyway there she is. angela merkel. the key person in these negotiations. it's interesting to note that yesterday she laid down an ultimatum. i'm looking for the exact quote she made and i can't find my piece of paper with it on here. it's a slight change in tone and she's been one of the crucial backstops to greece staying in. she doesn't want to be the german leader whose watch it was on when greece exited. she just changed her tone a little bit. that would worry me. >> you mean the fact that she said we need a deal by monday. >> no. the quote was greece cannot blackmail us. along those lines. i'm going to find it. but that is a slight change in tone. so far she has been pretty keen. >> but you would think that

she's the key person in this grexit solution. >> but the fact that she resolved herself and the leaders to get a grip on this it's quite surprising. >> quite surprising and she's trying to wash her hands of it. >> but others still to come. let's get out to julia live with more. julia. >> thank you so much. we have been very much focused on greece and the negotiations there but actually also what happened last night was quite an intense debate about what the eu continues to do about the my grantd migrant process. nigel, what do you make of the discussions last night? no quotas at least.

>> a disaster. he started to implemented the eu's common asylum policy put in place two years ago and it's based on burden sharing. any migrants that come across will be accepting in greece or where they land and the message last night from that counsel meeting was clear. the answer from northern europe is no. >> the answer is just stuff everybody else. we'll deal with it ourself or not at all. >> what's happened is this. >> it's not very european. >> no. there's no spirit among the european union at all. we have northern countries on the merge -- well saying to greece bullying greece do as we say or we kick you out but the other north-south split is over migration. just the other week in denmark was that. the danish people party that believe in strong controls have a coalition government.

they're saying we're not prepared to go on accepting my granlt -- myigrants. you also say that every single car is checked for migrants. >> that's simply not going to happen. >> it needs to happen. for two reasons. we don't want to have illegal immigration into britain on the scale it is. but there's another element or dimension that nobody here even dares mention. isis themselves said they will use the tide of humanity coming across the mediterranean to put jihadist fighters into europe. when they say something like this we ought to take them seriously. so now there's not just a problem about numbers of people. there's a genuine security

threat. i come from the u.k. we're an island. that gives us a remarkable advantage. we can check every vehicle that comes into the u.k. and if that means going back and forth from europe. whether it's me or business every week or a family going for holiday, if it means that process goes slower that's the price we have to pay to be secure. >> i want to ask you about david cameron and his efforts to address the process as far as europe is concerned. what's your view on the situation? >> he doesn't look like a man with a mission. he doesn't look like miss thatcher striding into the building waving her handbag. this looks like a bloke going through the motions. entering into a discussion about what we can do over migrant benefits but he can't address the fundamentals. it was as recently as three weeks ago the foreign secretary said on bbc we have to have

treaty change to get the deal that britain needs and the only thing agreed on last night is there will be no treaty change. so i would say at the first hurdle, the prospect the thought of any fundamental british renegotiation has already gone. >> can i ask a quick question about the negotiations as far as greece is concerned? does this argue that it's about a far bigger picture than greece? it's actually about the system being broken? >> well the system was actually from the start fundamentally flawed. what they thought is if you put in place economic and monetary union the political union was follow as night follows day. it simply hanltsn't happened. you can argue that economically and politically actually the eu has diverged and now these economic differences but the political differences have gotten bigger. from my own perspective i look at a country like greece whose gdp declined by 30% over the course of the last six years.

even the great depression in america, buddy can you spare us a dime was only 16%. >> do you think greece leaves? >> i pray for the greek people that greece leaves. >> do you think the leaders are handling this badly? >> i think the leaders are trying to bully greece saying do as we say or we'll eject you from the euro and wouldn't that be awful? and i think the greek people are saying actually that might not be so bad. >> greece is being bullied by the other european leaders. guys back to you. >> all right julia. thank you for that. meantime, you've got the prime minister arriving at the talks in brussels. still to come on the show meantime, it's the latest european firm to fall in line for a multibillion dollar buyout. a new report forecasting a jump in global deal activity. stay tuned.

. chinese stocks plummet over 7% in the session on one of the worst performances this year. >> another day, another deadline for greece. a deal must be struck by tomorrow. greek finance minister insists athens has bent over backwards to meet t quote, strange demands of creditors. >> no organic growth.

shares leap around 30% after canadian rival potash puts an offer on the table. reports suggest the german firm is likely to reject the 7 billion euro bid. >> a step in the right direction. investors check into tesco shares after the struggling retailer delivers a solid q-1 performance amid it's turn around plan. more negotiations to come today. >> we're not going to see a deal today. we have another euro group meeting tomorrow. >> you need to have one of them on the weekend. >> of course. in these crisis times you have to have one. that's what we did in 2011 and 12. >> exactly. that's why they delayed that one until saturday. our poor colleagues out in

brussels will have to work through the weekend. let's move on and get back to an update on markets. the big story today, china selling off sharply. this time two weeks ago we hit a 7 year high. since then we're off some 18% today. down 7.4 as you can see in shang high. off a little bit more than that. all of the various chinese indices sharply in the red and despite the market fall the economy is showing clear science of stabilizing. saying the recent market fall is a correction of earlier excessive gains. rallying to the top of the dax. >> rallying to the top of the dax after the company received a

7 billion euro takeover offer from larger canadian rival. annetta has the details for us. >> thank you so much. the details are that there is a takeover offer that went public yesterday night at 10:00 local time and that the prize he quakes to roughly 40 euros per share so there's still room for the shares to react more strongly. we have seen the shares up by almost 36. they're looking into bidding for it. that's not the first time. they have tried so back in 1997. so the regulators say no. so that's still from the competition side of things.

it makes a lot of sense to take them on. they will be the number one in the market and they have been overtaken in the meantime by two competitors in eastern europe. the market is quite competitive. analysts are saying it might make sense. it always depends on the prize. for now they're saying they might actually reject the bid for being not high enough because it might actually not take into account the 2 billion euros they have invested into a canadian project so far. so watch out for potential bidding war to start here

because people are saying they might go hostile and take over that way. for now it's a friendly offer. they want to do a due diligence and then they are planning after their due diligence to potentially offer that share price. i was talking about two investors at $40 a share. that deal equates to 8 times compared to last year's for k plus s but they also benefitted quite a bit from the lower euro beginning of this year so we should see some improvement in the terms of the bid coming in the next weeks or so. with with that back to you. >> thank you for that. the latest out of brussels. according to a greek government

official the prime minister will hold talks with them on friday. it would be bad if they didn't hold talks. >> i was going to mention one from a viewer lock them in a room without food and only water until they come to an agreement. do you know what it's not a terrible idea. >> not a terrible idea. >> it would force the issue, wouldn't it? >> no. they have been subjected to a lot of sleep deprivation over the last three or four or five years. i wonder why they haven't achieved a deal given that they all want to go to bed. >> and julia has to stay up and have as little sleep as they have. >> the global m&a boom will exceed $3.4 trillion before it peaks in 2017. that's according to a report from baker mckenzie and economics set for release on monday. grexit, brexit and china present

risks to the forecast. joining us to discuss the report is tim. thank you for joining us this morning. i'm just thinking about the potential deal between potash and k and s in germany and i just wonder that some of these companies, are they simply making a bid out of a position of weakness? that's massive oversupply because there's no real demand. they're really going for m&a because they can't find growth elsewhere. >> i'm not sure that's right. you'll see different drivers in any particular transaction but overall this would make sense. you're looking at a company trying to reassert as number one in the global market we have two more years. what's going to drive that?

>> and you have a normalizing of conditions. >> how do you know these deals will create value? how do you know that the valuations are not in bubble territory and we'll see seeing a steep fall in the share prices? >> we don't forecast this as bubble territory. so i think we see a difference between this cycle the prefinancial crisis you see, i think, jagged moves in the cycle. we see this as a return to a more normal slightly flatter cycle and we don't think the peaks would be so high as 2000 or 2007 and we don't think the down side will be so destructive. >> you say brexit grexit these

are threats to that point of view. which is the biggest threat? >> chinese hard landing. it's a big political story in greece but greece financially is a footnote. china really does matter. >> what's the chance of a chinese hard landing? >> there is a possibility then. it would certainly impact our forecast but we've seen the positive policy pronouncements today after the immediate correction and i think that they're likely to be more reliable. >> thank you for joining us. much appreciated as ever. global head of m&a at baker mckenzie. >> still to come here at worldwide exchange, the business that really sizzles. he talks about expanding his restaurant empire into new markets. we're back in a couple of minutes. heroes charge! ♪

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welcome back. household spending rose in may for the first tile in more than a year. let's get out to the nikkei. the story live for us from tokyo. >> thank you, wilfred. the core consumer price index for may increased by 0.1% on the

year. rising for the 24th consecutive month. in japan the index includes oil products but excludes fresh food prices and as for the so-called core core inflation index it rose 0.4%. this upward trend is likely to continue as according to a nikkei survey retail prices are now expected to go up. the survey was conducted on department stores convenience markets and other retailers and 60% of other companies will raise prices for physical 2015. this is because the yen depreciated by 20% over the past year which means the purchase cost has gone up and companies had until now been reluctant to reflect this rise in retail prices but as the economy is recovering and wages are going up retailers are feeling the time has come to reflect such higher costs in the final prices. also with it reaching 1.2 times, the highest in 23 years wages are expected to further increase

for the foreseeable future and households are hooking positive. they rose 4.8% compared with the previous year. now this exceeded the market forecast by 1.5% and this was the first on year increase since the tax hike in april last year. the statistic bureau's draft plan will be released in july and it's contents will be watched closely. wilfred, back to you. >> thank you very much. >> an update on greek deposits. according to the ecb, deposits at greek banks in may fell by 3.6 billion euros to 135.7 billion euros. we saw an acceleration of deposit out flows from greek banks about a week ago and then they leveled off as there was more optimism about a deal. i wonder what they're doing right now as we're many a stalemate on the greek talks. nintendo kicked off the annual shareholder meeting in tokyo today with investors watching

the strategy ahead of the first mobile game title later this year. it's also reportedly working on a new console code named nx. it's the first meeting since u.s. mutual fund capital research and management became the largest stake holder in the japanese gaming business in may. shares since then have risen about .7%. there we go. today's shares up by 1.7%. joining us now is the analyst. do you think the mobile strategy is a game changer? and i do wonder how nintendo is going to monetize this. >> yeah. i think it will be just before the christmas season. so my estimation, i think, that the monetization level of nintendo will be like the pocket money. like 500 yen or under 1,000 yen

but the point is that this time nintendo have the partnership with dna. you may know they're famous for the mobile game. so they're specialists of the monetization of the game application and the japanese like 5,000 yen to 6,000 yen. so my estimation is only 500 yen. so there is the possibility that the level of it will be higher than our expectation but we can see that just before the christmas season i think. >> that's interesting. another catalyst could be the new console called nx. i wonder what it's actually going to look like. because the wii u wasn't a big success when compared to its competitors and some people said the price point was too high. what are you expecting from that

console? >> in my opinion i think the nx will have the function the console game like 3ds and wii u. nintendo mixed the console game machine and like 3ds mixed them up so he was saying that he is trying to create the game machine. we can adapt to the european market and japanese market as well. japanese market is like portable. that is the main -- the market. but the european or american market is the console game machine. that is like the machine that people play the game in front of the tv. so i think the -- in my opinion, because there's no information

or detail but in any opinion i think they'll try to create something that can adapt to the portable and their family machine as well. so that's my opinion. but we'll see. i think. >> finally before we let you go. are you positive on the stock? or has it all been priced in? all the good news that's expected to come from gaming and from the console side? >> actually in my opinion for my evaluation the smartphone device game and the new console game machine and acceleration of the ip business is almost factored in the current stock price and i'm estimating 80 to 90% operating profit growth ratio for three years. so if the market expect stock

price will go up more. i think that they have to achieve stronger operating profit growth ratio. that means that they're planning the five mobile game title next year and i am estimating like 3 billion sales and 1 billion monetary sells for two titles but if they achieve more than that the stock price go up or i think, like 30,000 yen. >> thank you so much for that. >> now, putting the sizzle back in stake. he has created an empire that includes 25 points and a catering business. he explained how he is expanding in the middle east and asia. >> today it's so different than like 30 40 50 years ago where

the chef was not considered as a business man. today, we have the opportunity not only to make great food but also to be a business person. nobody knew who the chef was. it was the owner of the restaurant with a suit and tie. people don't care about these people anymore. >> tonya joins us around the set now. as well as his expanding empire you also talked about how to cook the best stakeeak. is that right. >> he gave me the top chefs of the best steak. i'm sure you know already because you're a fantastic cook as we all know. you have to season it first. very, very hot pan. not too much oil. just a tiny little bit and put it in and not overcook it. those were his top tips but he is an extraordinary character. he came from a very small town in austria. he was trained by the great chefs in france. he went to america, age 24. a big risk for him and he became

the darling of the hollywood elite and he has empire expanded ever since and he's as passionate today as when he was 14 years old. >> what's the perfect sauce to go with it? >> it depends what you like. i have a more simple taste. >> going back to his celebrity status as chef i would say from afar that he's been far surpassed by others over the last decade. is that fair or does he still have that status. >> he still has that status. he's the original celebrity chef and he also cooks for all the oscar -- at the oscars. he's been doing that for 21 years. he knows the good and the great and actually they followed hill in different ways. of course you've got your gordon ramseys, your jamie olivers. they have become celebrities but he was the original. >> he still has a few restaurants in london? >> yes. one called cut where i met up with him where he showed me how

to cook the perfect steak. >> there's one group that would like to see some of his cooking and that's the eu leaders in brussels. i'm sure the food there is bad. >> hopefully they agree on something. >> maybe that wouldn't be a good idea because they'd linger longer. >> what do you think he'd serve them? a greek salad. >> his signature dish was the california cuisine fusion. >> sorry. that's prime minister cameron arriving there. does he like steak? i'm sure he does. >> he's going to need a lot of strength to get through what he has to negotiate. >> we'll have to leave it there. thank you for joining us around the set. carolyn i hope you were taking notes there in term of the next steak. i'd like my lunch at about 12:30. >> sorry. i'm quite busy. >> probably going to get in trouble for that comment. david cameron just arrive there had in brussels joining all the other european leaders. he got slightly sidelined

yesterday of course in his hopes to discuss the renegotiation terms for brexit. hardly surprising given the priorities are greece and the migrant crisis as well. let's have a quick look at european markets we're looking at .8%. the second half of the week negative for europe but early this week it was positive and over the last seven days we're still positive on the stoxx 600. >> quick look at u.s. futures as well. the dow was down by 0.4%. even though we had a positive start to the trading session. seen off by .5. and the nasdaq higher by 0.8. we're looking at a little bit of recovery but all driven by the headlines coming out of greece. >> yeah, surprising that u.s. markets are pointing to a positive open. european markets in the red.

asian markets were very much in the red today. in particular chinese markets. the shanghai composite was down over 7% as any measure you can see across china. sharp declines across the board. some 18% correction since the 7 year peak we hit two fridays ago. >> and morgan stanley sees the shanghai come down between 2 and 30% in the next 12 months. can you believe that? that's a pretty wide range. it's a really wide range. >> when you have done daily moves of 7% it's hardly surprising. >> still to come on the show the winner is not donald trump. the miss usa pageant gets dropped from univision. find out why he is taking the blame after the break.

welcome to worldwide exchange. i'm carolyn roth. >> yes you are. >> i'm wilfred frost. >> shedding over 8% in the session in one of the worst performances this year. >> a sea of red in europe as they get set for another round. >> nike scores a win for investors as earnings beat analyst estimates for the 8th straight quarter thanks to high margin shoes and aparallel.

>> the tables turn on donald trump as univision drops the pageant partially owned by the real estate tycoon. >> chinese stocks selling off in another volatile day of trade with the shanghai comp posting it's worst fall since january but chinese regulators seeking to reassure investors in the last hour sayingly quiddity is generally ample. let's check in on markets with asia. sri, what were the drivers behind that big sell off today? >> it's really ultra leverage and ultra crowded trade. it's 80% retail. investor precipitation and the average is about one week. with those me tricks the magnitude of the sell off is hardly unsurprising and just given how very leveraged this

market is still it's a massive bull run doubling over the past year. we're starting so see very significant rerating coming back into the market. but i think this kind of volatility is going to continue because retail investor participation still remains at high levels. margin debt still remains at high level around 2.2 trillion. that's about 2% of chinese gdp. let's also not effect the wealth effects the bull run created among the public. that's underpinned the housing market. the authorities are not going to like that. that's why they're tieing to really finesse this overshoot in the market so they want a slow bull. some going as far as to say we may see a rrr cut as early as this evening. partially over the weekend. we've seen this policy action to

sure up confidence but here in lies a problem. if we see further easing measures that could add to the bubble like conditions for equity's markets in the mainland. big question on monday is whether this slide continues or whether we see bargain hunters of course. back to you now in london. >> thank you for that. >> meantime, quick peak for u.s. futures and they're looking positive. taking fair value into account as seen higher and the dow jones is seen by 24 points or so and the nasdaq higher by 1 point. this is after u.s. markets were down in yesterday's trading session. even though we had a positive start to the trading day but we had concerns around greece. healthcare the big out performer on that positive ruling on obamacare. we'll talk about that later on in the show. in terms of european markets we're looking read once again. off by .2%. the ftse 100 down by more than

1.1%. all eyes on yet another euro group meeting on saturday. and that said the week started out quite positively but then we lost steam. >> it's worth pointing that out. it panlts such a negative picture but the stoxx 600 is in positive territory. it's in reaction to a very positive prior three trading days. let's also look at bonds because of course the german ten year has acted as a safe haven over the last three weeks on bad days. we've seen buying of the bond and on more positive news days we have seen selling of it. it settled today on 0.85%. it's been doing the exact opposite. particularly the greece bond which had the most volatility. we're at 10.9%. we were at 12 or 13% about ten days ago and we got close to falling below. so highlighting in terms of -- we're in the middle of the risk

sentiment toward greece. let's look at fx. the euro movement has not been that clear or that easy to understand because the euro itself has not been directly correlated with european equities. it's been moving in all sorts of directions this week but also more positive data out of the u.s. yesterday. so on the other side of the euro dollar pairing is playing just as much as the first time. we're looking at 112. no real movement in euro dollar. carolyn. >> greek prime minister arrived in brussels in the last hour ahead of fresh talks with with his german and french counter parts. this with just four days to go until greece is due to pay 1.7 billion euros but after a week of negotiations the greek government and it's creditors are no closer to agreeing to a deal to unlock funds to athens. the german chancellor says an agreement must be reached over the weekend. speaking last night, the italian

prime minister lent support to his greek counter parts. >> we support the efforts of greek government to achieve agreement with the institutions but we know the importance of everyone to evolve greece and maintain greece in the euro zone. the final day will be saturday i hope and i'm confident that we can achieve an agreement. >> alexis please. >> please, alexis. >> i support alexis. >> julia is in brussels with the latest. julia, realistically what are the chances of a deal this weekend? that's the ultimate question. carolyn just said to me peter,

thanks for joining us, how realistic is it we reach a deal over this weekend. >> all the noise yesterday was unrealistic. i don't think i ever heard leaders preparing themselves for no deal. we heard read outs from last night's discussion at the head session where the dutch minister was saying we need to come back to prepare for the next steps after there's no deal. so there's active discussion now about plan b. >> that's what happens on sunday if we don't reach a deal on saturday. >> frankly it may happen on saturday too. i have been told by officials it's a classic take it or leave it thing and if the greeks leave it the meeting will be about plan b. they'll make sure the rest of the euro zone is protected from a greek default. >> we heard it was an effective threat that we need to reach a deal before the markets open on monday. has angela merkel given up? >> that's what everybody is watching now. the creditors, the imf, everyone is watching merkel. we know that wolf gang said it's

not achievable. but what we have seen is merkel swoops in and saves the day. what we're seeing is the politics are poisonous. she cannot move because he has more credibility on this issue. can she break on this issue? and we've seen no evidence that she is moving. everyone i talk to say she is holding tough and not moving and that's why i think we may not get a deal. >> and why is she pushing it off to the finance ministers if this is about the remaining fabric of the euro zone why is she leaving it to the finance ministers? >> political reasons. she knows she has her hardeman in the finance ministry and those that will sit down and walk through the numbers. if it goes to heads things start getting soft and it's about politics and the future of the euro. she doesn't want to deal with it. she wants the finance ministers to deal with it. >> is it broken? is the structure of this broken?

we had cameron talking about renegotiations and we saw the italian prime minister showing some level of solidarity. do they want in. >> someone said to me yesterday you have three prime ministers all saying the same thing. renzi on migration and the mediterranean issue and they're all saying if this is europe we don't want it. specifically on the greek problem is issue is what is the goal for greece? or is it part of a currency unit. is it mississippi where constantly you have to send funds and forgive debts and send federal money to pass misbecause it's part of a currency union or is it argentina. you send the imf in to break it fix it and put it on its feet. is this european solidarity or the imf program and they can't decide and that's what is causing the dysfunction right now. >> it's european solidarity until we need our own vested interest to come first. let's say we get a deal this weekend. does it change anything as far

as greece has concerned? we still have a third bailout to deal with or you may not get the measures passed in parliament. >> everybody is asking me why are they being such hard liners? we will be back here in three months and wolf gang this man committed his whole life to the european project and for the last five years all he has been doing is greece greece greece. he wants to go back to building his federal europe. he believes in this. he grew up on the french border and speaks french and believes in the reunification and the reason he is saying enough is enough is he wants to go back to the project and greece is ruining it. if we even give them a deal that can basically be done and papers over and kicks the can down again, do we want to? are they going to implemented it and are we going to be back here in three to six months. >> we have to wrap up. the only way we get a deal here

yes or no. >> i think that's what happens saturday. >> the greeks capitulate on saturday. back to you. >> thank you for that. let's get a view from athens. steve is on the ground there. regardless of that we come back to the same position in three months time. are you looking forward to going back to athens? >> i'm very happy to come down here. i enjoy my trip down here however i have a lot of empathy for the people down here. they have gotten themselves in this pickle by their own issues. i was just speaking to a very large international investor but a very very rich man who i bumped into and who is an avid viewer of cnbc and i said you're here and he said we're talking about the issues and this man made a lot of companies turn around internationally and i said are you investing in greece? he said i don't know how i can. the independence of the judiciary is an issue.

the lack of collecting of taxization is an issue. this is the kind of person that has great empathy for this country but won't do a deal in this country because he sees too many obstacles that the greeks could have sorted out themselves. this isn't about pensions or wages or austerity it's about rule of law. it's about tax corruption and vested interest. i have a lot of empathy but they have themselves to blame for this antagonistic approach that lead to this show down with the creditors and the germans as we heard there. seemingly, wanting to walk away from this as well. so even if we get a deal as well, i think it leads to a torturous process down the line. socially there's going to be a continuation of big problems here. goodness knows what happens in parliament because the left of the party which formed the

majority is going to be in tatters. independent greeks will probably walk from it as well. he'll have to move to the center get ago lineses. >> but the one thing that would get them out of this mess growth, isn't there. it's a big shame. >> meantime, still to come on the show nike beats big with it's quarterly earnings. can others take a lesson and benefit from the rise of ath-leisure? we discuss. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. with the tools and the network you need to make working as one easier than ever. virtually anywhere.

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welcome back. u.s. stocks look to buck the global trend after chinese stocks plummet. european equities in the red as angela merkel warns greece must reach a deal with creditors tomorrow and airbnb nears a .5 billion funding round that would value the company at $24 billion. >> let's give you a run down of what to watch this trading day. the university of michigan releases it's report on june

consumer sentiment. kansas city fed president is speaking this afternoon as for earnings, retailer finish line reports before the opening bell. >> let's take a look at some of today's other top stories. donald trump is planning to sue univision after they dropped coverage of the miss usa beauty pageant. univision won't air the event next month because of insulting remarks trump made about mexican immigrants. during the speech, trump accused mexico of sending criminals across the board. on thursday trump said the mexican government pressured univision to cut ties with him. >> nike's earnings and revenue beat forecast as they sold more high margin shoes and aparallel at higher prices. they beat estimates for the 8th straight quarter. it's raising it's sales outlook and posted better than expected growth in future orders. a key gauge of future demand. shares rose 3% in after hours

trade and currently in germany up by 2.8. lululemon issued another recall notice. in the notice the company said there were reports of injuries relating to a snap back from the draw strings in a number of tops. ouch. it was last involved in a recall in 2013 when it's yoga panlts were deemed excessively see through by customers. shares are up 60% though. >> that's terrible. >> that's just terrible. >> the minnesota timberwolves selected karl-anthony towns for the first overall pick in the nba draft last night. the 6'11" forward averaged 10.3 points and 6.7 rebounds per game in his freshman season with the wild cats. he is the 9th top ten draft pick for the wolves since 2006. now there was wolfgang puck.

he expanded his restaurant chain into the middle east and asia. he has been speaking to tonya about his plans for the future and also the secret of one of his signature dishes. here's his one minute bind to cooking the perfect steak. >> is there a secret to prepare the best steak? >> well i think the best steak really, you have to sere the outside really well. i like to cook my meat over high heat. like 1,000 degrees. so that it sears and caramelizes the fat and protein and you get an amazing flavor. >> and do you put -- is there any oil involved. >> almost no oil. so we cook it really with charcoal and on a boiler that's really hot. so you have really beautiful marbling so that gives meat flavor. >> your top tips for the best stake. >> yeah, lots of pepper and salt on it and sea salt and ground pepper and then a good steak

with a little olive oil and you can make a good steak at home but be sure if you don't have a barbecue put it in a very hot pan. built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

we've got breaking news for you. worrying reports coming out of france. according to dow jones a french chemical factory has been targeted in a suspected terror

attack. french police sources are saying they found one body apparently decapitated at the site and several people wounded. according to reuters they will be heading to the scene. that's citing french media. there was a loud explosion heard at the company. the local french newspaper says there's several victims. we are working to confirm that story and we'll bring you the updates when we have them. >> mobile payments are set to take off over the next few years and a surprising group of people are benefitting. restaurant waiting staff. they told cnbc we've seen a boost of customers tipping when using apps on their smartphone to pay for meals. it uses an app called zappa to take mobile payments. >> demand is high because as you can imagine globally everything is pushed into the mobile space

as we speak. so traditionally leaving your visa or mastercard. waiting for a machine, tends to be a negative end to a meal. so when you start pushing out a mobile product like zapper it's very transformational and allows diners in restaurants to turntables much more quickly and empower staff and the diner. >> it's not just tech companies profiting from the boom. waiters and waitresses are surprisingly benefitting too. >> we have a 4% uplift in tips. so i think it's better for customers. >> it's slowly gaining more people so we have quite a few payments over the course of the week and one to two every day. we do get a bit more tip. there's an option on it on zapper so we get a bigger tip. >> bigger tips means higher morale and better customer

service but does it mean tastier profits for the restaurant industry. >> we have been using it over a year and we get more and more customers paying with this app. we get like better service with them because they don't have to wait so long to pay. so if we have like a party of 12 people and they want to split the bills, all the 12 people could pay at the same time. >> in terms of diner experience obviously being able to pay instantly with your mobile phone is very empowering for them and that sort of feedback is passed to the restaurant as well. for them they're able to turntables more quickly and able to seat more diners. they're able to get to know their diners because we provide a powerful crn giving them insight as to who is coming in their restaurant. their spending habits. and they have the ability to communicate with the diner through that system as well. to drive loyalty and future revenue. >> it's really interesting this story. for me it comes down to the fact that it's so much easier to

press 10 or 15% than to workout it's 10 pounds or whatever. >> doing math is tough. >> it's great particularly if it leads to more money for the waiting staff. >> one of my biggest pet peeves is asking for the check at the restaurant and it takes 10 to 15 minutes sometimes to get the check and pay and leave. if you can do it in one swipe or one push of the button that would be amazing. >> the only thing about the story is here in the u.k. tipping and service charges, that usually goes to the rest rabbit rant and not the individual. here service charges go to the restaurant. so i'm not sure where it's ending up but it's leading to higher revenue. >> do the britt tip well? >> 10%? >> 15%. >> similar to what we see in the u.s. in switzerland they don't tip at all. no tipping in switzerland or japan. >> what annoys me in the u.s. is

you're expected to tip and you have to do it every single drink you by rather than at the end of the evening you add a tip. people wait and cough if you don't give it. >> anyways, you can read more about how the rise in mobile payments has lead to an increase in tips for waiting staff on our website. head to cnbc.com. >> still to come on the show finding the right prescription for m&a. they approach about the possible takeover for the latest deal in the health care sector. we'll leave you a look at the futures and how they're trading ahead of the open on wall street. just about bucking the trend of declines in europe and asia. 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

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welcome to worldwide exchange. here are your headlines from around the world. >> chinese stocks plummet shedding over 8% in the session in one of the worst performances this year. >> a sea of red here in europe as greek prime minister tsipras gets set for another round of talks. this as angela merkel warns a deal must be struck by tomorrow. >> nike scores a win for investors as earnings beat analyst estimates for the 8th straight quarter. >> miss usa, you're fired.

the tables turn on donald trump as univision drops the beauty pageant partially owned by the real estate tycoon. >> want to bring you up to speed with the situation unfolding in the southeastern part of france. a french chemical factory has been targeted in a suspected terror attack. routers is reporting that police sources say that they found one body which was apparently decapitated. and there were several wounded. cnbc can confirm that the interior minister is on his way toward the site and we can confirm the name of the company. it's air product. it's an industrial gas company. there was a fire being controlled by the firefighters. as soon as we get more information on that of course we'll bring that to you. how are the markets looking? >> yes, let's have a look. u.s. futures just about pointing

to a positive open. the dow expected to open up 27 points. the nasdaq up one point. s&p expected to open down a little bit but the fact that we're seeing any green at all there is quite surprising following a very red session in asia. shanghai down 7.4%. and in europe we're looking at red across the screen. in general we're looking at red across the screen. in particular the ftse 100 down 1%. we have germany and france both down around 0.3, 0.4%. it's worth pointing out over the last seven trading days the stoxx 600 is up over 1%. so these last days of negativity have been following three or four days of positivity around greece. at the moment at the margin things are looking negative for greece. so the markets are down. let's touch on asian markets. sharp declines in china. shanghai down 7.4.

hong kong down the best part of 2% and the csi 300 also down sharply. an extraordinary sell off over the last two weeks in china. two weeks ago on friday we hit a seven year high. we're down 18.5% for the shanghai index since two weeks ago. >> the governing council decided on friday to keep the emergency liquidity assistance unchanged and they have left it unchanged for the last two days after raising it every single day prior in the week. >> right. let's move on and look at some corporate stories. valeant pharmaceuticals made a takeover bid from zoetis. the wall street journal says it's unclear whether they're open to a sale. the company has a market cap of $25 billion. analysts long considered it

could be a takeover target. last year bill ackman bought an 8% stake and gained a board seat and was expected to push the company to cut costs and consider buyout offers. let's look at price action in germany. the market taking this well. particularly for zoetis. >> big story in germany today. k and s confirms it received a takeover approach from potash. it's reviewing it's options but reports say it is he expected to reject the roughly $7.8 billion cash offer as being too low because it doesn't reflect the value of a project it's building in canada. this is the second attempt to buy k and s. german regulators blocked a bid in 1997 to require a majority stake. potash up by 4.8. health care stocks rallied across the board after the u.s. supreme court upheld key aspects of obamacare.

the court rulded that the law does not restrict tax subsidies to states that establish their own health care exchanges. joining us now, thank you for joining us. now what are the risks to any future legal challenges? because i know the republicans, they can block this but they could block certain aspects, can't they? >> well they can do a number of things but we think that the fact that subsidies have been preserved makes it more likely they'll turnover the exchanges to the federal government and makes it more difficult to he reject the expansion and by the end of the next election cycle we'll have more than 20 million people according to the congressional budge office enrolled through the exchanges. that makes it extremely difficult to make major changes in law. >> we saw really big gains in health care stocks yesterday. just to mention a few, united

health up 2.5%. hca rising 8%. now you, you differentiate between the short material and the long-term winners. explain. >> well, i think yesterday we saw the biggest gains in some of the names that were weaker performers year to date. they have lower margins and benefit the most but longer term we think the consolidation that all of this leads to on the manage care side will foster more consolidation on the provider side. >> well, you just mentioned the word consolidation there. we've had an extraordinary amount of that already in this sector. which sub sectors are going to see the most further consolidation? and any names you're looking at. >> we haven't seen any wrap up yet. we're hoping to see some fairly soon but there's a bunch of

different groups that provide services to large integrated systems like staffing that will benefit. invision is one of the names that i mention and also other sectors like behavioral health. gets more coverage under the affordable care act and they'll benefit as well but we'll see consolidation throughout the industry. we'll see a tremendous amount in managed care and further consolidation in the hospital sector sector. humana is down by 3.5%. who is going to be left out in the cold here? >> well i think that we don't know for sure but with our report said they made an offer for humana. further additional reports that we could hear something this weekend. we've also seen anthem express

publicly their interest and after the big wave of consolidation on the companies we could see further interest in the providers that participated in the expanding role of managed care and care of complex patients and i think that -- but that really won't happen until we've seen further consolidation on the large manage care companies. >> thank you for your time. appreciate it. and how nike is benefitting from the trend of ath-leisure. that's after the break.

>> better than expected profits for the 8th quarter in a row. the world's largest sportswear maker is selling more high margin shoes and sportswear at higher prices. nike also raised growth forecasts. they're up 3.2% in germany today. joining us on the phone is the vice president for industry analysis of sports and leisure trends at nbd group. lots of talk about nba deals and fifa scandals. but let's get straight to the

earnings. very impressive. >> terrific quarter for them and continuation of a great run they have been on for some time now. >> well break it down for us. what was the most important thing? higher prices? higher end sales. this was encouraging stuff. >> i think we have seen prices increase about 3 to 5% every year and they're certainly in line with that. but they're riding this fashion trend of premium footwear that's driving their business overall and most of the growth is coming out of higher price point footwear. >> you have to wonder, what is eventually going to trip nike up? what do you think? >> well there's not anybody challenging them right now. the one person that could put them into trouble would be themselves and that doesn't seem to be happening at this point.

>> what about the strong dollar? because it seems now even though they have 50% of their sales coming from overseas they are denying the effect of the stronger dollar. why is that? >> well i think they have anticipated this strength of the dollar and have a very very sophisticated hedging system and they're able to ride through that and the strength of it worldwide is driving the underlying business even if the dollar is making the top line look a little weaker than it really is. >> has the fifa scandal hurt nike's brand image at all? do we get any comments on that front? >> based on what we know i don't think there's much of an issue here for them. they don't seem to be involved in accusations of impropriety.

i don't think it will have an impact. >> airbnb is close to a $1.5 billion funding round that would boost the valuation to $24 billion. the financing is being lead by tiger global and chinese fund hill house capital. the funding would match the biggest investment round for private tech company. facebook raised 1.5 billion in 2012. >> if you happen to see a small car in the road with no one behind the wheel, don't call the police just yet. google is taking it's pod car on the streets in it's hometown to get more practice with real world driving scenarios. they have a black bubble on the roof with scanners that map the world around them at 360 degrees. people can post their come mens about the cars online and google also announced a contest to paint the vehicles with creative designs. >> perhaps you should call the fashion police or design police.

that looks extraordinary. >> it's not about design. it's about not having to drive. >> they can buy the cheapest car. it's the look and -- that's shocking. it is shocking looking. >> i'm not sure i would fit in it. >> let's see if it works first and then worry about the design. how about that? >> okay. fine. well, we agree on that. fair point. moving on. donald trump is planning to sue univision after they dropped coverage of the miss usa beauty pageant which he partly owns. univision won't air the event next month because of insulting remarks trump made about mexican immigrants. during the speech announcing his candidacy for president he accused mexico of sending criminals across the border. on thursday trump said the mexican government pressured univision to cut ties with him. >> before we go to break, these are the headlines. a global sell off gains momentum while u.s. futures point to a pixed open. another ground of greek talks

kick off while angela merkel warns a deal must be reached by tomorrow and airbnb reportedly meres a $1.5 billion funding ound that would value the company at $24 billion. ♪ building aircraft, the likes of which the world has never seen. this is what we do. ♪ that's the value of performance. northrop grumman.

>> an industrial gas company has been targeted in what is suspected to be a terrorist incident. this fols media reports of an explosion that lead to at least one casualty. the local prefecture tells cnbc that local firefighters have controlled the fire. >> let's switch focus and have a look at markets. quite an extraordinary sell off in china as you can see. some 7.4% in the shanghai

composite. that takes it to a 18% high since it's high two fridays ago and volatility continues. huge moves every single day over the last couple of weeks. let's also look at european markets. the negativity over in asia also coming and influencing european markets but the main influencer has been the greece story. we're down 1% in the ftse 100 and about .5% for germany. of course worth pointing out that over the course of the last seven days the euro stoxx 600 is up at 1% overall. >> we've got another euro zone finance minister's meeting over the weekend. that is on saturday and we have an exact time for that. that will be at 5:00 p.m. local time on saturday in brussels to dits cuss greece. that's according to an official statement. also greek government official says that the greek prime minister has told the french and the german leaders that greece could understand the lenders

insistence on tough measures he thinks that greece will capitulate on saturday. what do you think? >> there are two mandates for the government and we're struggling with which is the more important mandate. is it one to keep the country in the euro? which there is an overwhelming majority of people we understand that still want that or is it two, to fight the austerity imposed by them by outside unrealistic creditors as well. it will be the former which is at the front of their thinking. either way it's going to be attention switching from these painful negotiations that julia has documented so well in brussels. back to athens because the focus would be on the banks.

the focus will be on the parliament and the focus will be on what's going on socially as well. there's another demonstration tonight at the big square in front of parliament where the left wing will be protesting as well what happens inside of that building though on sunday on monday and tuesday and of course tuesday being what looks like being a missed deadline for that imf payment as well and it will be huge. >> one viewer suggested plan b could be bankruptcy. >> well let's hope not. no one wants to see that and what that could mean not only of course for the greek government and greek banks and greece socially but also for the northern european creditors as well. i don't know if anyone has done the real work on what it potentially means for everyone that still does hold former greek bonds for the countries

themselves of course which are the major kred tors as well. of what it means socially. i know the ecb is going to put all it's fire power behind some form of damaged limitation exercise. they'll be pumping money into the bond markets as well but can they basically wac-a-mole on every issue that comes up. i don't want to exacerbate the situation. but this is why i was amazed when merkel turned around to reporters and apparently said this is for the finance ministers to discuss now. not for the leaders. i can't help thinking it's the whole project that will change now if greece falls out and people will be looking at what happens next that this isn't a decision for the leaders rather than finance ministers. >> we've seen ireland turn the corner and spain, was greece started to turn the corner? how much blame is at their feet? >> i'm not going to leave it all on them.

it's been dreadful negotiations. i remember being in istanbul for one of the g meeting and straight away he already had a go at him within the first couple of days of him being the greek finance minister. you just don't do that to europe's largest debtor. you try to get them on the side and divide and conquer and he upset potential key allies. those governments didn't do enough. you can't blame everything. you can blame a lot on them but you have to look at previous governments and their ability to get rid of corruption. this say long-term story. >> thank you for that the nasdaq

is off sliegly by 1.2 points. the d the dow had the biggest drop in two months. both are on track for the first weekly decline in three weeks. >> let's give you a run down of what to watch this trading day. june consumer sentiment before 10:00 a.m. eastern time. it's expected to hold steady from levels in may. esther george is speaking this afternoon. as for earnings retailer finish line reports before the opening bell. joining us is michael, founder and president of bruin hill partners.com. a very happy birthday to you. >> thank you. 50 is sweet. >> now this time next year on your next birthday will us equities be higher or lower?

>> i clearly think they'll be higher. in fact one of the best recipes for that to happen is to start seeing weak weakness and test some of the down side parameters. so it's an example of violation of 2062. the 200 day moving average is my first target. i'd like to see that level tested to continue to see the rally going forward. i really believe in u.s. stocks right now. >> shorter term we have to look at what's happening with greece. that could be putting downward pressure on greece over the next couple of trading days but we have another earnings season coming up and usually during these weeks we get into confession season but it seems as though this time around there haven't been that many companies that issued negative guidances. is that because the second quarter is going to be better than the first? >> it's a recipe of both. the scenario is lower expectations. that's well within the reasoning

of most of the companies. going into the fourth quarter of last year the expectations became too high and too hard to meet and with hiring starting to pick up the balance sheets rntd as pristine as they have been. but it's healthier for most of these businesses is why i start seeing the expectations lowered and the earnings will reflect that. >> what's your top short-term sector pick in the u.s.? >> i would stay short gold watch the demand in copper and the euro is still going to show weakness because the dax or the 85 basis points on the ten year in germany is my barometer. >> thank you. have a lovely birthday and weekend. that's it for today's show. have a lovely weekend. i'm wil fres frost. >> next up squawk box u.s. we'll see you on monday. bye bye.

one person has been killed. a possible terror attack at a factory in the southeastern part of the country. also breaking overnight news china stocks are getting slammed. the benchmark shanghai composite index dropping 7%. that's the biggest one day loss in five months and you have missing mail. the state department can't find 15 work related e-mails from hillary clinton's private server. the report raising new questions about her use of a personal account. and nike shares getting a big boost from better than expected quarterly results. it's friday june 26th 2015.

squawk box begins right now. >> live from new york where business never sleeps, this is squawk box. >> good morning and welcome to squawk box here on cnbc. joe will be back on monday. mike is spending the morning with us. he is senior columnist at yahoo! finance. good morning. >> good morning. >> great to see you. we have a lot to talk about including china, greece and the dow transports hitting correction territory. we'll be getting ready for the big government employee report. 89% of american workers think they deserve a raise but fewer will ask for one because 7% of people say they'd rather get a root canal than ask for a pay bump. we have highlights from that report coming up later in this