a very warm welcome to you. this is worldwide exchange. >> these are your headlines from around the world. >> greece's surprise call for a referendum sensdds shockwaves through global equity markets. policy makers insist a bailout deal is still possible. he is due to hold a press conference in the next few hours. this as the imf still wants to be paid. >> i hope that payment is made on tuesday and if that was not

the case i would call the board very, very promptly. >> in greece capital controls are imposed after the ecb caps it's funding to the nation's bank. the stock market is also shut for business until next week. >> in asia the shanghai composite enters bear market territory despite the central bank delivering a double rate cut in a bid to boost growth and lending. >> coming up on worldwide exchange. all eyes on greece but find out what island is struggling to pay back the burden on death before tuesday. and elon musk's space ambitions. a rocket explodes on take off. we look at where it all went

wrong. >> straight to the latest developments on greece. he is to hold a press conference at 12:30 cet. he will make proposals to avoid a greek default adding athens is just sentiments away from a deal. this after the greek prime minister took creditors by sur piez and prize and announced a referendum. he said the ecb camping funds to the banks had imposed capital con controls controls. >> it's more than clear this decision had no other goal than the blackmail the will of the greek people but they will not succeed. these moves will bring precisely

the opposite result. the greek people will be more residence resolute in rejecting the bailout proposals. >> as we stand here just six stocks in the green in the stoxx 600. a sea of red reacting to this extraordinary decision to call a referendum in greece imposing capital controls on the nation's bank. the stoxx 600 down 2.4%. it paired some of the gains in the open. let's look at the individual european markets and see where that weakness is coming across. quite broad as you can see. ftse 100 down. germany down 3.5. france down 3.6. italy itself down the best part of 4%. greece itself is closed. now of course we're not expecting contagion this time. the rules of the game meant to be much better yet major bank across even the developed core

nations of the european union up sharply. both off more than 5% as are bmp in france off the best part of 6%. now let's look at bond rates that moved even more sharply. the 10 year german bond reacting some 20% moving yields to 0.77%. bond buying of the german markets seeing wreeldsyields all. the one country of course seeing them the most elevated greece. let's look at the greek yield curve where we're seeing short-term yields to the tune of 33% on the two year. the ten year spiking to 14.5%. now the back end of last week we were looking just below 11%. quite the serious moves there. quick look at the moves in the euro. you might expect when we see it spread wide compared to the u.s. making the u.s. more attractive

in terms of wreeld you might have expected the euro to rally. it correlated with european equity markets and sliding the best part of 1% down 0.9. we're at 11065 today. they have been announced across other major currency pairs. >> a number of european policy makers have been commenting on the prospect of a grexit. the eu commissioner said it wouldn't be the end of the world if they left the euro zone. meanwhile, an exit is a possibility, there can be new aid for greece in the single currency. this time last week julia there was a political desire to reach a solution and reach a deal but now we're here on june 29th, on monday, and the lack of productive talk results seem like we're not going to get some type of progress this week. would you agree? >> well the referendum call was

a real game changer. a break down in the negotiations over the weekend and what we see in greece now is the need for capital controls. they with draw 60 euros a day. foreigners coming to greek will not be impacted but what we have heard over the weekend according to banking sources is 40% of those atms actually had cash in them. so not about the availability of cash. just whether or not they can continue to fill up the atms. concerns about whether or not the bank holiday will continue onwards. people concerned about how they pay their rent so what the implication of this are are very very concerning for greek people but the question now is what are the creditors going to put on the table in this proposal. the table seems to have shifted again. has this call for referendum precipitated increasing flexibility.

i'm joined by an mep from the party. thank you for joining us. >> thank you. >> is this what your party wanted? you wanted the creditors to panic and perhaps give you another proposal? >> not panic. but just renegotiate. the take it proposals and they're realistic almost. financial times they call them economic. we want to negotiate. we always do. but they do not want. he could not accept. it's impossible. 23% vat. >> they said they're not going to do that now. in the proposal given last night they have given you flexibility already. >> what about advance of taxization for the companies?

100% for next year. no company in greece can afford such a measure. >> your party would like to call off the referendum. would you like to call off this referendum if they show greater flexibility? >> if there is an agreement before sunday we could go to the force and vote yes in favor of the agreement and then the government would have more support which will be difficult anyway. he said he was going to campaign for the no but your government now has no credibility to implemented any kind of deal at this stage. it's over surely either way. >> no if people vote no which will be the case then everything will go normal.

>> people want to remain in the euro. they're not going to vote no surely. >> but not to remain in the euro. we want to stay in a euro with sustainable with growth you know? more austerity. this ended in a catastrophe. why continue the same road. >> are you being unfair to the greek people here because you're posing a question about austerity. you're not saying to them if you vote no here the risk is that greece could ultimately leave the euro zone. part of the concern with the creditors is you're not being fair or clear or democratic here. >> we have said everything to the people. these people are not clear. they're playing a political game: they don't care about the

economy. >> let's say we don't make a deal in the next few days. let's say we go to the referendum and the people vote yes. having had prime minister tsipras pushing the campaign for no, he has to re-sign, doesn't he? >> absolutely. it will be a political defeat. anyway, the tsipras government doesn't want to implemented this government. so to approve this program, some deals is going to implemented it and god bless him. god bless him. no government can implemented such a program. no government in the whole world. what is going now, the only people got them down. this is insane. we want to have a compromise.

we want to stay in the euro zone. we make concession. they don't accept. they want to overthrow the government. >> great to chat with you. mep for syriza. if we don't reach a deal and we get a referendum if the people vote yes having mr. tsipras pushing the campaign for no he will re-sign and good luck to the next govern. implementing what's necessary. >> joining us now is a chief economist at g plus economics. there's a lot on the table. what do you think will happen? a default? an agreement last minute? >> i think that for certain greece is heading toward a series of default events here. we're going to start with the imf nonpayment tomorrow but it's the end of the month and the end of the quarter. this is a time when the government should be paying wages and social payments at home. the banking system settlement system has got to square and

none of this will be possible under the current conditions so we're heading toward a series of defaults by the greek state domestically and of course there's no good solution out of the referendum next weekend. what's effectively happening here is that the bank controls are -- have called time on the ecb's promise of keeping the euro together. at the same time they are calling time on how long the economy can survive or any government can survive and it's about social tension as well. there's no rational basis at this point. >> we're seeing a fair degree of contagion in the markets. we're showing you the boards right now. do you actually believe this could be europe's lehman moment? >> the contagion is important. i think this is very much a game changer. it's such a good story here because ultimately what we're seeing is the point of fresh

transition shifted toward bank stocks and high yield bonds. that's because the ecb is trying to contain contagion on other bonds. there's not many ways the market can trade this. that's why they'll be focused on the stocks that otherwise make little economic sense. but the volatility as a transition mechanism is shifting this to the top tier collateral of the banks. >> the bond markets for the likes of spain, italy, and portugal, we've seen yields rise but it's still below 3% and we're a long way from having a currency block. if the ecb wants to get fwrees go, it k. but it can step in and support the other countries, can it not? >> it raises big questions now

because it's put an expire date on the ecb's commitment to greece that exposes the flaw or the nature of draghi's promise to do whatever it takes to keep the euro together. it's a conditional promise. the greek crisis has demonstrate demonstrated the government solvency and financial system and it will also go down the political institutional policy direction about a debate about foreign risk ratios and with the ratios rising across the south how risk free are government bonds. so that could really transmit the problem on to those parts of europe. particularly banks where nonperforming loans are still

punching holes. so i think the fall out here in terms of just how strong it is is going to be revealed in the weeks a head as a correct fall out of the events today. >> what happens next if we do have the grexit. do they ensure a domino effect doesn't take place and they follow greece's lead. >> they anticipated this will happen which is why they promise to do whatever they can. to use all the tools in their disposal and of course they have a huge amount of resource at the moment because what we have seen so far this year is a structural lack of liquidity depth. this will be a knock on effect of the confidence shock for greece and you have the ecb. so i think that yes, the ecb has some room in terms of

controlling the contagion across assets that it's buying but that's not the case for the assets that it's not buying. >> thank you for your time. chief economist at g plus economics. mow for the average greek, capital controls have gone from threat to reality but what does this mean for tourists? head to our website for the full story. >> still to come the shanghai comp enters a bear market despite the double rate cut. what tools are left for policy makers to stem the volatility? we'll be back in two.

. welcome back to the show. the greek government press office has confirmed that the greek prime minister alexis tsipras will be holding a press conference tomorrow at 12:30 local time. promises to be a very busy day in brussels when he will be holding a press conference. we'll see whether we can get a deal. >> the shanghai composite index entered bear market territory. down 21.5% from the peak. this despite a double rate cut over the weekend. the first time it reduced them at the same time since the financial crisis.

let's get out to sri. he has more on the latest in china's sell off from singapore. >> let me just answer what you said quite rightly. all the main benchmarks in china have entered bear market territory incidentally. moves on the volatile side. we were down by over 7% at one point. cut those losses still deeply negative at the settlement. it was staggering also that the market really brushed off the intervention by the pboc over the weekend. that 1-2 punch. the cut in the rrr and also the cut in the main interest rate and the fact that they brushed it off really tells me that the bull market in china is truly done now. so perhaps we will see some rerating of the market. perhaps we will see valuations that are not as stretched as they once where. elsewhere the picture is plain to see. broad, widespread risk aversion

as the greek debt talks broke down over the weekend. back to you in london. >> thank you for that. let's get back to the chief economist at g plus economics. do you think the pboc still has a sense of control? we have four rate cuts in the space of a couple of months. they don't seem to be helping but the market is still down. >> absolutely, yes. we're at a point where it's possible that there's panic so the bear market becomes self-fulfilling. it's important to recognize there's a short-term and long-term here. in the short-term this stock market debubbling we're seeing in china is a byproduct of the reforms reforms taking place there. of course that will have an effect on capital market evaluations at home. from a longer term perspective

there's a big risk reconverging of the chinese growth story and that is that china will move from being a major surplus company to an account deficit country as it exports capital to the rest of the world. the fact that we're already seeing such controls at home and despite tefrtshe efforts taking mace it will increase and that is a big game changer in terms of china's impact on level capital markets going forward i think. >> china a far more important country in terms of global financial markets than greece is but correcting itself it doesn't effect the global economy. but is is that telling us a broader broader message? if so what could that mean for

the u.s. economy and european economy and the rest of the world? >> the policy reaction function is really the big known in how china decides to proceed going forward and clearly they're keen to be containing the fall out in terms of stock market correction. it will be in terms of how they decide to proceed. also in terms of allowing some socially attractive ones to take place in terms of international balance of payments convertability. the other thing to bear in mind is while it's been quite steep it hasn't been as large yet as the earlier bull market rally so there's sometime before this fits into household balance sheets through retail equity holdings. however, as i said i think that ultimately how policy officials

decide to presume going forward we'll have a big impact on dollar flows and capital market. >> the pboc is using easy policy to turn around china's sluggish economy but we haven't seen a big change in china's growth story. do you think it's an overly ambitious target? >> well there is a -- there hasn't been a great connection between the gdp and stock market evaluation story. that means that we cannot draw direct inference from the stock market correction but there's one thing clear here and that is that chinese moving from a low income to a medium economy and there's a limit to how much they can fuel their bubble going forward, particularly as valuations have now reached it on their own accord. >> international developments,

does that push back the hikely hood -- likelihood of a fed rate rise this year? >> we have two economies where they're struggling with difficult to deliver and financial difficult to make viable reforms. in both cases they're necessary and hard socially to swallow in the short-term. the other common dimension between china and greece at the moment and again, speaking to your question about the broader market's significance is we learned what liquidity can no longer insulate capital markets from the shocks of systemic risk and geo political events. that means unchartered territory, it means reduce systemic liquidity depth to global capital markets in spite of the flood of liquidity and the currency wars. it also means of course greater

and more frequent volatility spikes going forward. so yes we're moving toward financially less growth friendly environment going forward and that could well have an impact. >> second half of the year coming up. thank you for joining us here on worldwide exchange. chief economist at g plus economics. moving on the bank for international settlements is warning that excessively low rates are at risk of inflicting serious damage on the system. the central banker's bank says ultra low rates threaten to aggravate market volatility saying the more one stretches an elastic band the more violently it snaps back. >> china is expected to be the largest shareholder holding more than a 30% stake in the lender. they gathered for a signing ceremony which determined each member's share. new york fed president bill dudley says a september rate hike is in play still if the

u.s. economy keeps improving. he tells the financial times evidence of a pick up in wage gains in common household spending is alleviating some of his concerns about momentum in the jobs market. that says he warns the market implications could be greater than many believe setting a precedent that membership is reversible. >> still to come on worldwide exchange a bad start to trading. the latest for the ecb on the wake of the decision not to offer extra emergency assistance to greek lenders. we'll leave you with a look at how the major banks in europe are trading today.

>> greece's surprise call for a referendum sends shockwaves through global equity markets. european banks fall sharply amid concerns over contagion. >> a bailout deal is still possible. the eu commission president is due to hold a press conference in the next few hours. this as the imf says it still wants to be paid. >> i hope that payment is made on tuesday and if that was not the case i would call the board very very promptly. >> in greece capital controls are imposed after the ecb caps it's funding to the nation's bank. the stock market is also shut for business until next week. >> in asia, the shanghai comp enters bear market territory

after a volatile session. this despite delivering a double rate cut in a bid to boost growth and lending. >> welcome to the show. let's bring you the latest flashes on the greek story coming from the president of france. a deal is still possible and hopes that negotiating with athens can resume. he also says that a greek referendum is a choice to remain in the euro or likely exit but france wants greece to remain in the euro and they're ready to restart talks. those flashes coming in the last couple of minutes. >> let's look at the european markets. the ftse 100 down 1.5%. but the german markets at 11,156. down about 3%. they face a week of uncertainty when it comes to financial and

economic reform. the referendum coming up on july 5th and a lot of uncertainty. the euro was down .8% against the dollar. we are still looking at the euro stoxx 50 down better than 3% in today's trade. >> let's have a look at bond rates because we have seen around a 20% move in the ten year german bund. it's a safe haven that's pushed yields down to 0.77%. above 0.9% on friday. it is worth pointing out that while spain and italy and portugal have seen yields rise the yields are still low in the grand scheme of things. 2.258% there in spain. the ecb is the all important backstop for the bond market and preventing contagion from spreading too much even though the equity markets are all in

the red. the moves in the bond market so far not too far. the euro at times last week was moving in opposite direction to europe's equity markets. that's not the case today. strong correlation with the euro declining in line with the euro stoxx 600. it's up 1-9. it has declined some 2%. >> but euro dollar is well off the session lows and you would think -- this is what some analysts pointed out overnight. you would think against this backdrop your dollar would fall more. i would argue this is a small decline. only down 2-thirds of 1%. >> it's the resilience of the euro catching many traders by surprise. there's been a lingering uncertainty by greece. >> but there were days last week when even though we had big sell off in the equity market the

euro was strengthening. that had something to do with the way it was moving. it is unclear in terms of the euro itself but there's negativity. >> the ecb will main train the emergency liquidity assistance to greek banks at its current level. though the central bank is ready to review it's decision. european banks had over $45 billion worth of loans to greece at the end of 213 with banks with over a third of that. they follow in 2nd and 3rd respectively. moody says european banks are better prepared to absorb any volatility following exposure in 2014. >> they're feeling the effects of contagion. off by 5.7%. germany up by 4.6. down by 4.2%.

they're all busy making contingency plans, no? >> well they might be doing contingency plantds but if you dig a little bit deeper into the numbers then you see the contagion risk is really limited. that's what we're seeing today in terms of market reaction. it's just the taking back of all the hopes we had been factoring in during the course of next week. high flying last week as you all know and shares and banks grow among the best performer last week. if you take a seven day perspective on all of these shares you can see they're rather flat lining now compared to a week ago. so even if it looks really bad today, the situation is not as bad as it seems for european banks. the exposure to greek

authorities is limited. we have for example, from german banks, of course we have an exposure of roughly 25 billion euros in terms of credit exposure but it sits with a state owned bank which is actually the bank through which germany has channelled their aid to greek authorities. they really have limited exposure. roughly around 250 to 400 million euros and the picture is the same. in france looking at different banks, so i think what the market is doing today is just taking back some of those good sort of -- the good mood we had last week. but having said that of course the banks are the most vulnerable part in that equation in a case we see a contagion

from the greek situation into other parts of the euro zone. into parts like italy or france. if yields will rise there as a consequence of an unstable situation in greece then the other european banks will get into trouble but for now it's quite a contained situation and that big bank behind me will do whatever it takes to actually prevent such an escalation of the crisis. as you were saying earlier in that statement they were saying they're monitoring the situation very closely and they are willing to deploy other measures in order to keep their easing monetary policy stance. in other words they would also do more in case market turbulences are really hitting their acome day tif monetary policy stance. so i would say i think the

situation is a little bit better than the markets are suggesting currently. with that back to you. >> thank you very much for that. joining us now in studio global head of fx strategy. steven, very good morning to you. >> good morning. >> wasn't the euro off more than it is? >> the key point to take out is the reaction function in the euro changed dramatically this week. remember the last few weeks we have seen the euro actually rallying on headlines or negative headlines coming out of greece. what happened this week is actually turned around and weakening the euro. the first factor is the market is probably taking the situation more seriously now. risk of a default is becoming clearer but secondly and just as importantly is positioning. the reason the euro was rising over the past few wreaks is because the market has been short euros. they're using the euro as a

funding currency. greek headlines tend to reduce risk taking in the market what the market does is close out those positions which entails buying back the euro. these are the reasons as to why it was going that way. this week's move is probably an escalation of the situation. >> so it's out of the way for now and i guess as you would indicate the market is more serious. no longer as complacent about the greek crisis as last week. what do you do with the euro dollar now? do you want to be a seller because you think the outcome will be messy or do you want to buy because it will be a positive outcome or do you want to stay on the sidelines? >> clearly you want to be short. the reason is less to do with a situation in greece and more to do with the real driver which remains ecb quantitative easeing.

remember we have this referendum in greece. our view is its actually a yes vote. this probably averts a crisis in greece. as far as a default is concerned that could be averted. you could argue a little bit of positive momentum but against the backdrop of this enormous quantitative easing you want to stay short euro. we're targeting levels around 105 or so. >> what really caught my attention was drop against the yen down 2.5% about an hour back. why do you think that is? >> this is a similar situation. dollar-yen has been rallying quite nicely as you would suggest improving situations in the u.s. but euro yen is high and similar to the u.s. dollar. i think the point i would say, both euro dollar and euro yen went into this morning's announcement overvalued and you're seeing a correction in

both of these pairs. >> let's talk about contagion. we've seen some reaction in terms offier man yields falling and spanish, portuguese italian rising a little bit but they're still pretty low in the grand scheme of things. is is the rest of the euro zone going to be like that regardless. >> the way to answer this is to compare to the peak of the crisis in 2012. at that point, every time greece hiccupped there was a significant contagion response. that's very muted this time and i think the reason it's mute sd because the market is fairly relaxed and even to the point of a greek exit which i'm not say as good likely but even if that happened the market believes the euro could probably handle it now and three years ago it was a test for the euro survival. so that in my mind is why

there's less contagion than we saw in 2012. >> thank you for joining us. much appreciated. global head of fx strategy. >> still to come on the show it's not just greece facing a tuesday deadline. the clocks ticking in on a nuclear with iran. we're live finding out what's holding up an agreement after this break.

welcome back. the second prison escapee that staged a massive break out is back in police custody. he was caught less than two miles from the canadian border. his partner in crime was killed in a police shoot out on friday. stephanie gosk has more. >> after 23 days on the run. after a prison break that captivated the country, 35-year-old david sweat is in custody tonight. shot and wounded by law enforcement two miles from the canadian border. >> can we get an ambulance to stage at the constable station for any possible further responses? >> copy. >> sweat was taken to a nearby hospital for treatment. roads surrounding the area remain blocked off by state

troopers. >> i heard a lot of sirens and i live right over here and he was only a mile away from the border. >> authorities had been searching for sweat in a 22 square mile area near the woods where his partner was shot and killed on friday south of malone. it appears that sweat had moved well beyond that area toward the canadian border. the two triggered a huge manhunt after they escaped from clinton correctional. a maximum security prison. cutting through walls and sawing through steam pipes. breaking through a two foot thick brick wall and making their way to the street. prison worker joyce mitchell was getaway drivers but sources say she got cold feet and instead went to the police. she allegedly smuggled tools to the inmates inside frozen hamburger meet. gene palmer has also been charged. this man has more reason than most to be relieved that the

manhunt is over. >> look at a picture. that was the devil. >> he was his police in the 1997 murder of a business man and testified against him. he was worried matt might come looking for revenge. >> i thought, is it real? is this finally over? and part of me wanted to say i've got to see this because i don't believe it. and then certainly i saw enough through reports and on tv and the nightmare had ended. >> according to multiple courses familiar with the investigation just about a mile down this road new york state police sergeant jay cook saw a man dressed in military clothing leaving the forest. he thought he looked suspicious and he told him to freeze. instead, david sweat ran so sergeant cook fired his weapon and hit sweat in the shoulder. >> moving on british prime

minister david cameron is warning that islamic state militants are plotting terrible attacks in the u.k. cameron added that teaming up with syria's president to fight isis would be the wrong approach. his comments follow friday's attack. >> residents have been holding a nighttime vigil remembering the victims of friday's attack. at least 38 people died when the gunman opened fire on the beach. authorities believe the 23-year-old government had help in carrying out that attack and at least one suspect is still on the run. now they're trading sharply lower. the company has been flying tourists home and says customers hah have booked holidays in the country can rebook or cancel those trips. we're off about 6% today. joining us now is deputy head of

mena. good morning to you. >> good morning. >> let's touch on these awful developments over the weekend. is the isis threat being underestimated by western governments in particular in materials of the attacks that can happen outside of iraq and syria. >> governments have been aware for awhile. for a sense it has been underestimated. when you go a couple of years back a lot of analysts saying this is going to be a real problem: you have potentially thousands of terrorists that pose a significant risk at home and across the middle east. they have probably seen up to 3,000 travel to join the islamic state there. you have the people that can return and then you have self-radicalized individuals inspired by the ideology and

propaganda. so it's a threat. >> and this morning prime minister david cameron was reiterating the way to defeat is is by backing the iraqi government themselves and not more formal troops on the ground and military invasion. is that a view you agree with? >> i think so. some people advocateth assad. there's very little progress being made against the islamic state. we're seeing some gains being made. situation has been more dynamic where as in syria there's few partners on the ground. that lead people to say maybes a sad -- assad is the lesser of two evils. you play into the propaganda that isis is putting out there. that could potentially aggravate the situation. very tricky situation. >> i want to jump in with comments from the ecb. he says he assumes the majority of greeks are in favor of staying in the euro and referendum and he can't imagine

this is a basis for further he negotiations. he adds the ecb did not increase the emergency funding to greek banks because conditions for raising it are not there anymore. he said that will be discussed on wednesday. >> talks on iran's nuclear program reached an impasse, the day before a deadline set for striking a deal. reports from talks say western officials are accuseing teheran of trying to backtrack on negotiations. the foreign secretary said there's going to have to be some give or take if we're going to get this done in the next few days. no deal is better than a bad deal. over to you. >> it looks like the talks have been extended yet again. both the iranian and american

delegation confirmed the talks will go on until the beginning of next week and they'll need to come to some sort of conclusion before congress goes into recess and in dramatic form the chief nuclear negotiator flew back to con sultd with the iranian leadership over sensitive issues they western comfortable talking about remotely. these include access to military and undeclared sites in iran. they want to verify haven't been used for a military dimension. they also in other major arguments and this is how much to cap iran's research and development in the nuclear field. they want clarification. they want to know how quickly and when sanctions will be lifted in order to sale this

deal at home. both sides are accusing oech other of moving the goal post. they said they're not here to renegotiate the framework but to sign a deal. foreign minister zarif is expected to fly back tomorrow to start the negotiations again with the foreign ministers which is going to be a tricky week of negotiations to see if they can overcome all of the hurdles they have been trying to iron out. this is always going to be the very top stage of the deal, the final stages. the beginning stages were picking lower hanging fruit. now they have to get down and it's going to be a tough week to see if they can come to a deal and then we move on to the second stage where congress gets a chance to weigh in on the deal. there's a lot of moving part bfrs this before this comes to a conclusion. >> thank you. let's gattis cuss morement six world powers and iran have been

taking part in these nuclear talks. is there one party to blame for a deal not being reached thus far? >> quite recently we have seen a lot of various language from iran's supreme leader. both sides want to get as many concessions as pol possible. so as we go into the final days of negotiations that will be the main focus of both sides. he mentioned it's better to have that. that will be the crucial question. really having to make that call whether or not -- you have to weigh up the risks of accepting a bad deal against the risks of not getting a deal at all. so that will really be the key question. >> how important is this nuclear deal to president obama's foreign policy and does that

give iran the upper hand in these talks? >> the deal is extremely important to us. as for iran they need economic stability in the long-term. and from the american point of view it's more about prestige and obama put a lot of effort into these negotiations and it's been his main foreign political objective, again, when we saw considerations of the strikes in syria, perhaps the decision was with this deal in mind and not wanting to antagonize the iranians. >> what if we get another formal extension. wouldn't that reduce the chances of a deal actually coming through to 10 or 20%? >> i think so. both sides have a want to avoid another formal extension. this time they were a bit more

cautious. saying we might require a few more days or weeks to get this done. another extension that gives congress more time to prepare potentially blocking this deal there are concerns over health so time is of the essence here. >> you mentioned the supreme leader's health. why is that so important? >> not a lot is known about this but he's the one that if he becomes ill you'll see a power struggle between hard liners and more modern elements and that could put a deal on hold. so that's a potential risk that has been come what overlooked. >> okay. thank you very much for joining

us. much appreciated. >> still to come on the show an unmanned space rocket explodes after lift off. what does this mean for the future of space exploration? we'll have the latest coming up.

and welcome to the second hour of worldwide exchange. i'm seema mody. >> i'm wilfred frost. let's get you headlines. >> greece's surprise call sends shockwaves through global equity markets. the dow is called to open lower in triple digits. >> but policy makers insist the bailout deal is still possible. this as the imf still wants to be paid. >> i hope that payment is made on tuesday and if that was not the case i would call the board

very promptly. >> in asia the shanghai composite enters bear market territory after a volatile session despite delivering a double rate cut in a bid to boost growth. >> a set back for space x. a rocket explodes minutes after take off. >> coming up on the show all eyes on greece but find out which other island is struggling to pay back it's debt ahead of tuesday. >> it's the end of the line for the convict that escaped from a new york jail. coming up all the details on how he was taken into custody and pride in tech. a record numbers margin san francisco's gay pride parade following the supreme court decision including a leading member of the tech community.

>> welcome to the show. we are in sell off here and in case you missed it no deal has been reached moving athens on its $1.6 million payment. european banks feeling the brunt. keep in mind greek banks right now remain closed on monday and the greek equity stock exchange is also closed in today's trade. but as you can see here in europe it is the banking sector that is weighing on the markets right now. down about 4.6%. commerce bank down about 3.7%. >> let's get to the latest developments in greece. according to the eu commissioner he will make proposals to avoid a greek default adding athens is

just centimeters away from a deal. this after the greek prime minister took creditors by surprise and announced a referendum on the bailout proposals proposals. the ecb prompted the decision to impose capital controls. >> translator: it is is more than clear that this decision had no other goal but to blackmail the will of the greek people and abinstruct the smooth democratic process of the referendum but they will not succeed. these moves will bring the opposite result. the greek people will be more residence resolute. >> let's get out to julia. what will the referendum even be on? i believe the prosel is not even on the table anymore. >> you're right. if we go beyond tuesday that is

gone. if they're going to have a referendum they have to have it on a perspective deal in the future. some attached to reforms and measures of course but it seems to look like a membership of the euro referendum. the greeks are reporting he suggested it was a defacto euro membership referendum but all the more tiff cut that they're pushing the no vote at this stage. what we have seen here is that the greek people waking up this morning to the realization that they can only get 60 euros a day out of the cash machines. the talk that i've heard is that actually the banks don't have the amount of cash available to allow every greek person to take 60 euros out per day for the next six days so you have to wonder what happens at the back end of this week if the referendum goes ahead. we still have today and tomorrow before the bailout deal ends so it's still the possibility

somehow that the greek government can try and come to an agreement with the creditors but difficult to see how that happens. remember he tweeted out a differ proposal and the proposal wasn't the one that they discussed in parliament on saturday when they signed off on this referendum idea. but life is carrying on as normal. tourists walking around. people are getting on with their lives and accepting there's a political and current confusion and turmoil in the greek economy and then the conditions for the greek people here. it is very difficult. but i talked this morning about the prospect of what would happen if the greek people voted yes and if the greek people vote

yes and there hasn't been a deal that the government is behind then he will ultimately have to re-sign and good luck to the next government that has to en enact the reforms. so many questions here and very little answers. back to you. >> you know this discussion is a bit over the top. there's been preliminary extension, movements, so on and so forth. there's been a lot of progress and we are at a point where it has been significantly diluted compared to the previous arrangements. >> has your stance been made harder because euro zone leaders won't agree to looking at further debt reprofiling or renegotiation at this point? >> this issue has always been in the background of anything

because we have to produce debt sustainability. >> very crucial though. >> that sustainability analysis was produced with all the hypotheticals including from our perspective a debt operation as well as additional financing. >> if we don't see further negotiations from the greeks would you agree that a root down toward grexit looks inevitable here? >> let's hope it can be avoided but clearly the outcome and the way in which the referendum tonight or tomorrow in the course of the day will happen will be critical and if and when they're ready to resume talks we stand ready to help. >> now failure of 11th hour talks over the weekend raised the possibility of a grexit and

it's that fear resulting in investors selling stocks and buying bonds. take a look at a good indication of the volatility in today's market. down better than 3% in today's trade. the winning trade so far this year has been buying european equities and going short the euro thanks to the monetary policy in place but it's the lingering threat of the grexit and domino effect that could ensure. that's keeping investors on edge. take a look at u.s. futures pointing to a lower open. the dow down triple digits. 144 point move to the downside in premarket trade and the s&p 500 down about 17 which goes to show that u.s. investors don't feel like they are insulated from this greek drama that is playing out at this moment. >> certainly not. that's also why i would expect that u.s. investors will be buying treasury today.

we're seeing the german ten year yield dropping to below basis points but we are seeing selling so contagion is at play but fairly limited. the italian ten year yield higher at 2.29% compare that to the levels we saw four years ago. the 7% levels. this is still very very low. in the currency marks look at the euro dollar pair. we're down by half of 1%. we were briefly below the 110 level and now the declines are pretty limited and this say surprise to many. we're seeing buying in the u.s. dollar but instead the yen is higher by three quarters of 1%. >> thank you. now the ecb will maintain it at its current level though in a statement the central bank said it was ready to review it's

decision decision. they follow in 2nd or 3rd respectively. moodie says european banks are better prepared to absorb any volatility following restructuring in 2012. >> quick look at the banking stocks across europe and big declines declines. off by 4.7%. losing 4.5%. let's get back out to anaet at a in frankfurt. >> thank you so much. also the banking shares look really wild today. take a longer term perspective. look at them on a seven day perspective. they're still up and flat lining. there was a lot of hope in the market that there will be a teal in athens and that would be of

course a positive for sentiment so today it looks dire and so do banking shares. it can't really be exposure. for german and french banks, the commercial banks could actually cause -- they have very limited exposure. we're talking in the range between 100,000,400 million euros. this is nothing for such a big bank. it sits where public lenders -- in yermny it's dfw. it's a lender through which the german government is channelling their loans to greek and base it on 15 billion euros. others have more as well. this market reaction is a little

bit more overdone but in other terms we can say that perhaps it just takes back all the hopes priced in last week. on wednesday there's another crucial government counsel member meeting on the phone and they'll discuss it again. back to you. >> for the average greek capital controls have gone from threat to reality. what does this mean for a tourist? head to our website for the full story. >> let's take a look at today's other top stories. puerto rico's governor is warning $72 billion in public debt is unpayable. he is expected to give a public address today as legislators debate a $10 million budget that must be approved by tuesday. he recently confirmed he

considered asking permission from the u.s. congress to declare bankruptcy amid a decade long slump. >> spacex suffered a major set back as an unmanned rocket exploded about two minutes after lift off in florida on sunday. the cause of the accident is still unclear. the falcon 9 rocket successfully flown 18 times since it's debut in 2010 including six runs to the space station under a contract with nasa. but spacex tried and failed twice before to land the rocket on a platform in the ocean. >> doctors say one of the killers that escaped from the new york state prison three weeks ago is in critical condition. he was shot and captured by a state trooper two miles from the canadian border. his partner was killed on friday. he will be charged with escape

burglary, and other kounltdcounts if he survived. >> how should investors play it? stay tuned for the details.

u.s. stocks are set to follow euro and asia markets into the red.

puerto rico's governor is warning the u.s. territories $72 billion of public debt is unpayable and david sweat, one of the killers that escaped from the new york state prison is in critical condition after being shot and captured near the canadian border. >> let's give you a run down of what to watch this trading day. may pending home sales are out at 10:00 a.m. eastern. they signed contracts on sales that haven't closed yet. university of phoenix reports results after the closing bell. >> talking about greece the french president says there are still a few hours left to strike a deal on greece after an emergency cabinet meeting in paris, the french economy is robust and had nothing to fear about the impact of the greek crisis. >> ecb board member says an extension of emergency lending assistance to greece will be

discussed at the bank's governing council meeting on wednesday. he assumes a majority of greeks will be in favor of staying in the euro when they vote in a referendum on a bailout deal. joining us is richard kelly. how do you make money? >> it's more about trying to avoid losing money this week than trying to make money. we all want to see stability over the next day or so. i don't know if this is a market where you can actively trade though. >> so how does that work? are you going to buy the safe havens or stay on the sidelines? what are you going to do? >> you try to position for a bit of the worst right now. as things are moving off, a lot of this will depend on how the polls start to come in but everyone whether short-term or long-term will be short the euro. it's a question as to where and opens up better opportunity. i suspect you see some people

positions on that. you're going into safe havens. some looking at it as a value today given what's blown out a bit but a lot of that will depend on these pols coming out and suggesting the greeks still support the bailout how are you expecting it to go? >> i suspect the greeks will vote yes but there's much made of the fact that actually what has been proposed no longer exists after tomorrow. a question for me is if the greeks do vote yes, the government has given themselves plausible deniable to say they're backtracking because they're not offering us the same deal or after the fact so it leave ace will the of question as to whether a yes vote moves us forward and even over top of that there's the question of the fact that the government is going to be asked to be part of a unity government to go forward. i don't suspect they'll support them and it's plausible

denieblt. >> for our investors at home what market reaction could we see if we get a yes vote? >> if you get a yes vote you'll the euphoria and the euro will slightly higher but a damage done to the economic side of things, you will get the sell off in bunds but people will want to see where we go in the week or two after that because it will be a protracted uncertainty. >> when you look at the decision to call for this referendum to what extent is tsipras trying to cover his own back? now he can say i didn't decide that. the people decided that. how do you weigh up how he handled this? >> this was entirely about political cover and it's the reason we expected some sort of political change within greece to happen because he just did not have the political ability domestically to two forward this. had he gone a different route and pushed forward with an

agreement his own party would have split. he's at least trying to distance himself. the concern is it was the worst possible choice for the greek people. if you look at the damage that's been done by our estimates in the last five months they added 30 percentage points to the debt to gdp ratio. >> what's the trade of the day? >> you continue to be short in euro-yen on the fx side. >> thank you for that. head of global strategy at t.d. securities. we had come menls from angela merkel. the german chancellor apparently told the leadership meeting that it's up to greece to find a way out of the crisis. saying one can only make decisions on the greek crisis on a day-to-day basis. >> and the shanghai composite entered bear market territory despite a double rate cut. how do you make money in the chinese market? we'll discuss that next.

the shanghai composite index entered bear market territory. this despite the central bank delivering a double rate cut over the weekend which involves a cut in the interest rate and reserve requirement ratio and the first time that has happened since the financial crisis.

let's get more from sri on this story. live for us in singapore. >> thanks. i think the action over the weekend really illustrated the importance of the stock market in terms of the wealth effect that it creates and the underpinning of the housing market and social stability that goes with it. when the stock market goes all of that potentially goes as well and that's one of the factors that contributed toward the intervention by the pboc. it was staggering though. very limited impact on the market. it was up by 2% in the morning session. we saw the same old volatility we saw on friday. almost a carbon copy. the mark in the afternoon was down by over 7% but what was different was we did come back still deeply negative but it cut the losses to end more than 3% in the red.

i will say we're going to see more of this volatility. there's still a lot of leverage in the system and the fact that the market failed to react to the supportive measures over the weekend really tells me that this bull market in china is really truly broken right now. elsewhere in the asian markets it's plain to see the heightened risk aversion after the talks broke down over the weekend between athens and it's creditors. we're probably in for more of the same until we get to that referendum in athens. back to you now. >> now, new york fed president bill dudley says a september rate hike is in play if the u.s. economy keeps improving. he tells the financial times evidence of a pick up in age gains, incomes, and household spending is alleviating his concerns about sustainable momentum in the job market. that says he warns market implications of a greek exit

from the euro could be graver than many believe. >> if this situation unravels can you see the fed hiking rates as early as september? >> given the market volatility you would think they like to hold off on a rate hike. at the same time i can see janet yellen saying i'm not going to give into the mess taking place in europe. i'm going to focus on what's important for the u.s. economy. >> maybe you're right. still to come it's not just greece facing a tuesday deadline. the clock is ticking with a nuclear deal in iran. we're finding out what's holding up this agreement after a short break. >> let's look at futures. the dow indicating a lower open. rough ride for u.s. stocks. 163 point move to the down side. we're back in two minutes.

>> banking stocks weigh on european shares while the dow is called to open lower by triple digits. >> a bailout deal is still possible. this as the imf says it still wants to be paid. >> in asia. >> i hope that payment is made on tuesday and if that was not

the case i would call the board promptly. >> in asia the shanghai composite enters bear market territory despite delivering a double rate cut in a bid to boost growth. >> an unmanned rocket explodes minutes after take off failing in it's mission to deliver supplies to the international space station. >> and this time last week the market was certainly convinced that the greek exit from the euro zone would be avoid but after a series of emergency meetings and summits, greek leaders and international creditors have been unable to agree on the terms of greece's bailout. a referendum is by july 5th.

nasdaq down 47. s&p 500 down 19. if you want to talk about a sell off take a look at what we're seeing here in europe. now down better than 3%. worst day for european stocks since 2011. the french market also down by a similar amount. by around 3%. the italian market with a similar loss but 872 move to the down side. keep in mind greece has frozen it's financial system. greek banks and the athens stock exchange are closed today. i want to also point to what's taking place in the commodity complex because oil has not escaped today's market turmoil. we're looking at brent crude down about 2.5%. perhaps in response to the volatility in the current market and keep an eye on wti crude down about 2.2%. back below $60. a level seen as a key psychological level. what do people do when they want safety in this market? turn to bonds and goalld.

we're seeing it rally by a .3%. >> let's look at the latest flashes. the tuesday deadline for greece remains key. then a third bailout is the only option. it will be much more complicated to reach an agreement after it ends on tuesday. he also said that spain's economy is much better prepared this time around than a few years ago and that's really told as well if we look at bond prices because while we are seeing safe havens see bond buying and prices rise and yields fall and if they move in the opposite direction, 2.25% for the spanish ten year. a far cry from the levels we saw in 2012 on any bad news coming

out of greece where the yields were 6.7%. we were in the middle of a risk on risk off day for european markets. contagion somewhere away. let's look at the greek curve. the ten year 14.5%. the two year over 30%. >> talks on iran's nuclear program reached an impasse the day before a deadline set for striking a deal. western officials are accusing teheran of trying to backtrack negotiations. the foreign secretary said there is going to have to be some give or take if we're going to get this done in the next few days. no deal is better than a bad deal but what are the sticking points? joining us live is ollie. >> that's right. foreign minister zarif has flown

back last night and fought over major sticking points. we seem to be what sort of research and development iran will be allowed to do once a nuclear deal has been penned. the major sticking point is access to iran's military sites where the iaa want to verify that there were no military dimensions to iran's nuclear research in these places. a lot of people read badly into the fact that the foreign minister has come back to iran so quickly but this may help talks move along because he will consult with the top levels of the iranian government that will then set out the guidelines of what can and can't be negotiated in vienna. so there will be probably a lot more clarity in the talks between the two sides. nbc news also learned that the deal is being broken up into

three phrases. one to agree on the frame work. the second part is to wait for congressional approval and the presidential veto. if it comes to that and they pass the hurdles they would sign the deal and at that point sanctions would be lifted and everything would go into effect. it's going to be a tricky week of maneuvering through these obstacles and very delicate talks between the two sides. back to you. >> thank you for that. let's take a look at today's other top stories. puerto rico's governor is warning $72 billion in public debt is unpayable. the island will seek to defer payments while negotiating with creditors. he will give a public address today as they debate a $10 million budget that must be approved by wednesday. he confirmed he considered asking permission from the u.s. congress to declare bankruptcy amid a decade long economic

slump. >> one of the killers that escaped from a new york state prison three weeks ago is in critical condition. david sweat was shot and captured by a state trooper on sunday two miles from the canadian border. his partner was killed by border patrol agents on friday. sweat will be charged with escape burglary, and other count ifs he survives. >> coming up a major set back for spacex as one of its rockets explodes before it can reach it's final destination. details coming up after the break here on worldwide exchange.

it's not just greece. we also have our eye on china. in bear market territory down about 20% from the recent high. this after the central bank cut by 25 basis points to 4.85%. a record low over the weekend. that's the fourth reduction since november in an effort to stimulate the chinese economy. the bank also cutting it's reserve requirement ratio but despite the moves by the central bank investors are losing patients. headlines weighing on investor sentiment. the shanghai composite closing down by 3.3%. >> in the middle of the trade it was down over 7%.

highlighting the extraordinary activity we have. >> sunday was elon musk's 44th birthday but he didn't get the present he was hoping for as one of his companies suffered a major set back. let's get out to landon live at cnbc hq with the details. >> an unmanned spacex rocket exploded two minutes after lift off in florida on sunday. the accident destroyed a cargo ship carrying supplies. the cause of the explosion is still unclear and in a post on twitter spacex ceo says preliminary analysis indicates a problem with the rocket's upper stage engine. it will ground it's rockets for a number of months. it had flown successfully 18 times since it's debut in 2010 including six cargo runs for nasa under a 15 flight contract.

the explosion marks a big set back for spacex which tried twice before to land the rocket's first stage on the platform in the ocean. part of the goal to reuse the rocket slashing launch cost. this is the third cargo ship bound for the space station lost in the past 8 months. blew up on lift off and in april a russian ship went off course following a problem with it's launcher. the space station crew two russian cosmonauts and american astronaut have two months of food and supplies on board. another is set to lift off on friday. if supplies fall to 45 days some of the crews could return home. they have a backlog of 50 missions worth more than $7 billion including several commercial satellites and it's competing with bowing to fly astronauts to the space station in 2017. back to you. >> thank you. a record number of people showed

up to watch and take part in san francisco''s annual gay pride parade on saturday. among the marchers tim cook and a large contingent of apple workers. in new york governor andrew cuomo presided over a same sex wedding. >> before we go to break, let's remind you of the headlines. u.s. stocks set to follow european and asian markets in the red with futures pointing toward a triple digit fall for the dow. pure ri and david sweat one of the killers that escaped from a new york state prison is in critical condition after being shot and captured near the canadian border. we're back in two minutes.

lots of red in european equity markets. the dax is now off 3%. it was off 4.5% at the open but across the board a very much risk off day for european equities. which sectors in particular? banks declining sharply. even the big banks in the likes of germany and france which supposedly shouldn't be seeing as much contagion this time around are off the best part of 5%. down 4.7%. of course all of this comes off the back of developments out of greece over the weekend as we know a referendum has been called by mr. tsipras. it will be voting on a deal that expires. what can we expect? julia is live for us now. >> and that's just one of the crucial questions that i asked

christine lagarde over the weekend. how can they hold a referendum if the proposals don't exist after tuesday. >> it is a fact that the european financial arrangement runs until june 30th and any development unless there is a new arrangement or an extension will no longer legally exist. >> so it is the referendum question that we don't know. there's also going to be a press conference later on today that might give us fresh information and also the prospect in the next two days that we see some kind of u-turn and he decides i'll sign the deal and i won't hold this referendum at all. in the meantime for the greek people they slimts of how much cash they can take out. limited to 60 euros a day. there's concerns that the bank having been shut for one week

won't open at that point but for all of that the greek people are getting on with their lives. the tourist buses are still going around. there's people walking around. you can hear the traffic behind me. people are being pretty stoic about the situation. there's not many answers and the next few days are going to be very crucial. >> it's good to see that the tourists are still there but for every day that greek banks are closed, what does it mean for greek businesses? >> well it's interesting. the chamber of commerce was saying back over this negotiation it's created a gap of 23 million euros a day. 600 businesses closing. it's been a terrible thing, i think, for the greek economy. we've seen nothing but deteriorations in the five months that this process has gone on and the fact that capital controls have been enacted i question whether or not we can decide in a week's time even if this referendum

goes yes and they decide to continue on negotiation with the europeans, how can you pull back capital controls? i think the spill over effects of what has been decided over the last two days are going to have spill over effects for many weeks. not just the weeks we're talking about here. >> in the meantime, tempers are rising on both side of the table between greek leaders and international creditors. is it senseless to think a compromise could be reached at some point this week? >> well there was some confusion this morning about whether or not the commission is going to put a fresh proposal on the table. the commission saying they aren't: it's very confusing. he did sweet out a fresh points higher posel last night. this is a very important point for the government itself and one of the members of the coalition. the greek party. but who knows what tsipras wants to do. the risk here is given that

they're pushing the no campaign. if people decide to vote yes and continue the negotiations with the europeans it makes his position here pretty untenable. so i think you have to be looking at the situation and going -- actually calling off this referendum and trying to negotiate further would be a better solution. the question is is can he in all credibility do that? and of course the creditors don't believe this government will enact any reforms going forward anyway. it's a total mess. we have to wait and see what happens. >> thank you for that as well. yes we are seeing safe haven bond buying and yield compression. german ten year 0.785 and we're seeing it move the other way. heightened rist k aversion of course but just to put that all in perspective look at where the yields are at. 2.24%. a far cry from the levels we hit

three or four years ago and that really highlighting that the risk of contagion even in this hugely risk off trading day is still less than a few years ago. >> you have to wonder what all of this means for the fed. a september rate hike is in play if the u.s. economy keeps improving. he tells the financial times evidence of a pick up and wage gains. incomes and household spending is alleviating his concerns about momentum in the jobs market. he warns the market implications of the greek exit from the euro zone could be graver than many investors believe setting a precedent that membership is reversible. >> premarket trade in the u.s. adjusting a lower open. the dow down 156 points. s&p 500 down 18 and the nasdaq down about 45 as events in greece have taken a turn for the

worst over the weekend. let's get you a run down of what to watch in this trade dag in the u.s. may pending home sales are out at 10:00 a.m. eastern. signed contracts on sales that have not closed. they're forecasted to rise more than 1%. a smaller increase in april. now the parent of for profit operator proposal results. let's talk about the chief option strategist and this could be a rough ride for u.s. stocks. is it all about greece? >> to start the day but volatility is opportunity and if we look at the market action we have been stagnant really here over the last three months. trading sideways between 2120 and 2080. we did make new highs. so like you said the reaction here is some what muted. we're down to 1% and we have gotten back half of our losses.

>> which sectors do you think are going to react? in the u.s. as you're eluding to there will be a little bit of risk off across the board or are there particular trades you're planning to make in the volatility that's arising? >> i still think tech is the opportunity. the stock markets here in america are still positive. still positive year to date. we have been talking about this year in and year in and now we're seeing the fall out with greece. look at the euro currency. it's cut it's losses as well. the initial knee jerk reaction was very negative but the u.s. is holding up well in comparison to the rest of the markets and like you eluded to i think the contagion risk is rather small and last week's action going into this weekend we knew this weekend was a bionary event.

so the market has solid fundamentals. earnings to start next week that can support us. >> we have been debating around the desk what does it mean for the fed and it's first rate hike? do you think it could be pushed out or well maybe u.s. markets are going to be quite resilient to the drama in greece and the fed won't worry about it too much? >> i look at the fed as reacting to the market internals. and when things are good enough they can make the rate hike. it's going to be symbolic. the question is what happens after that but i don't look for this to have much impact at all on the markets. it's something to get excited about because the trend will be changing in rates but i don't think it will have a measured impact on the marketplace. >> european stocks are getting hit on the chin. stocks down across the board.

the german dax down better than 3%. why haven't we seen gold out perform which is a favorite safe haven asset during times of high volatility? >> exactly. we're not getting the price action if this was a major emergency. gold does not bounce that much. treasuries have rallied but we have seen treasury yields already have a big move here in the last couple of months. so you're not seeing much market reaction. it's more emotional. right now it's more news. that's what we want to keep an eye on. let's see where we are by week's end and how it sorts out but you have to look at things on a weekly basis and the markets have been pretty solid and trading very much sideways within the range. >> thank you so much for your time. chief options strategist at bullseye options. and just a reminder we'll be bringing our european viewers the statement from european commission president in around

45 minutes time. >> let's have a quick look at stocks as we leave you today. we're down 3% across the board. dax is down having rallied a little bit. the stoxx 600 is down. >> keep in mind greece has frozen it's financial system. greek banks and the athens stock exchange closed in today's trade. >> maybe the ecb will come in with preemptive actions. maybe the omt will be activated. who knows? we'll wait and watch for that. they still have a lot of tools they could use. they haven't acted them yet. that's all we have time for today. thanks for watching. >> we'll see you tomorrow. next up is squawk box. with passion.

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stocks around the world getting hit hard now on that greek crisis that only seems to be getting worse on a daily basis. a developing story over there on the ground. greece shutting down it's banking system for six days until that referendum also imposing capitol controls to keep money from flooding out of the country. in asia chinese stocks are falling all the way into bear market territory despite another rate cut from the central bank. plus a spacexplosion. destroying a cargo ship that was bound for the international space station. it's monday june 29th 2015 and

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. becky has the day off. there's one big story today and that is greece. here's what we know at this hour. the country now imposed capitol controls. the banks and main stock exchange will remain closed all week. atms expected to reopen tomorrow but daily cash withdrawals will be limited to 60 euros. over the weekend greek prime minister alexis tsipras angered creditors when he announced a snap referendum on the terms for cash reforms deal. the vote is set for sunday july 5th. a yes vote would back pension cuts and other